Continental supervisory board approves Automotive division spin-off

Hanover, Germany – In a significant move, the Supervisory Board of Continental has approved the planned spin-off of its Automotive division. The board is recommending that the 2025 Annual Shareholders’ Meeting also endorse this step. Upon approval, the new independent company will have cash funds of €1.5 billion and a revolving credit facility of €2.5 billion to strengthen its operating business.

Continental’s Executive Board outlined the next milestones for the spin-off, with short and mid-term targets to be presented at Capital Market Days in Frankfurt am Main on June 24 and 25, 2025. The listing of Automotive on the Frankfurt Stock Exchange is scheduled for September 2025, with an allocation ratio of 2:1, meaning each Continental shareholder will receive one Automotive share for every two Continental shares held.

Wolfgang Reitzle, Chairman of Continental’s Supervisory Board, stated, “Today, the Supervisory Board unanimously gave the green light for the spin-off of Automotive. This is an important step in Continental’s realignment. Focused companies are significantly more agile and can create more value, especially in a challenging environment.”

Continental CEO Nikolai Setzer added, “Thanks to the intensive work of everyone involved, the preparations for the spin-off are well advanced. With the approval of the Annual Shareholders’ Meeting, the spin-off can proceed as planned. This realignment will strengthen the independence of all our group sectors: Automotive, Tires, and ContiTech, enabling them to be more agile and closer to customers and markets.”

Stefan E. Buchner, a member of Continental’s Supervisory Board, will chair the Supervisory Board of the new Automotive company. Philipp von Hirschheydt will continue as CEO of Automotive following the spin-off and has been appointed to the Executive Board of the future company.

Philipp von Hirschheydt expressed his gratitude, saying, “I am delighted with the confidence the Supervisory Board has shown in the entire Automotive team and in me personally. Our earnings performance in 2024 proves that we are on the right track and ready to develop further as an independent listed company.”

Additionally, the Executive Board and Supervisory Board agreed on Continental’s future dividend policy. If the spin-off proceeds as planned, Continental shareholders can expect an increased distribution of 40 to 60 percent of consolidated net income, up from the previous 20 to 40 percent. The independent Automotive company will have a planned distribution range of 10 to 30 percent of consolidated net income, effective as soon as the company’s earnings situation allows.