Continental is looking into the idea of selling its auto supply division, according to media reports.
Manager Magazin, a German monthly business magazine, first reported the sale consideration of ContiTech, which makes auto parts like hoses and belts. It has been picked up by various news outlets since Monday.
Bloomberg reported that it has seen a company presentation that came up with a plan for Continental to split off the automotive part of ContiTech to prepare it for a potential sale, a new investor or a joint venture.
Manager Magazin cited sources that the auto unit is set to be separated from the business in the next two years.
Continental’s tire business and non-automotive parts of ContiTech would be retained as the core of the company’s future. The publication quoted an unnamed top manager who warned of the threat of a workforce rift if the tire business continued financing the auto side.
“Against the backdrop of rapid change in the automotive industry, ContiTech is accelerating its transformation,” Bloomberg reported a company spokesperson saying.
ContiTech’s automotive business does nearly CAN$3 billion per year.