Continental considers sell-off of ContiTech car business – manager magazin By Reuters

© Reuters. FILE PHOTO: The title of German tire maker Continental is pictured on a wheel on the IAA truck present in Hanover, September 22, 2016. REUTERS/Fabian Bimmer/File Picture

BERLIN (Reuters) -German auto components provider Continental is contemplating the sale of the automobile division at present bundled inside ContiTech, supervisor magazin reported on Monday, citing firm sources.

The attainable sale could be a part of a wider reorganisation of the corporate being deliberate by Supervisory Board Chairman Wolfgang Reitzle and the manager board round CEO Nikolai Setzer, the publication added, citing the sources.

Continental has taken a collection of steps lately to restructure and enhance profitability as its market capitalisation tumbled to 13 billion euros ($14.17 billion) from 50 billion in 2018.

The corporate mentioned in February it was reorganising ContiTech from six divisions into one in every of Europe, the Americas and Asia Pacific, whereas bundling its automobile actions right into a separate unit geared in direction of electromobility.

In response to supervisor magazin, that unit – specialised in belts and sealing programs with a turnover of greater than 2 billion euros – is because of be separated from the enterprise inside two years. It might be bought, cut up up additional or merged with one other firm, the publication reported.

The extremely worthwhile tyres enterprise and non-automotive a part of ContiTech will probably be retained as the long run core, it mentioned, quoting an unnamed high supervisor who warned of the specter of a workforce rift if the tyres enterprise continued financing the vehicles enterprise.

Continental declined to touch upon the report.

The corporate mentioned in Could that ContiTech could be realigned with the goal of enhancing its impression and effectivity, with out offering additional particulars.

($1 = 0.9175 euros)