Continental’s Future Setup Will Unlock New Strengths

The CEO explained to shareholders the specifics of the realignment and the strategic background to the move. He emphasized that the Automotive, Tires and ContiTech group sectors, as they have existed until now, already operate largely independently and have asserted themselves as three strong players in their respective markets. “Now they are able to build on their individual positions of strength and have the maturity to hold their own against the competition,” said Setzer. “This step will create new opportunities. Our goal was and is to create sustainable value.”

Setzer continued: “Today, we want to transform Continental together and unlock new strengths.” Specifically, Continental is planning to spin off the current Automotive group sector in September 2025 under the name Aumovio. Next year, the ContiTech group sector, which specializes in material solutions, is to become independent. This realignment means that the Tires group sector will operate as Continental AG and focus exclusively on the global tire business. “In this way, we will create three strong, independent champions,” explained Setzer.

Well-prepared transformation 

In a rapidly changing world faced with geopolitical challenges and shifting supply chains, Setzer underscored that the ability to change is a decisive competitive advantage. Growing technological demands are further intensifying the pressure to adapt and rise above the competition. In an environment like this, continued Setzer, “flexible, focused companies can capitalize on opportunities better than complex organizations.”

He emphasized that Continental has made thorough preparations for the transformation and that the group sectors are well positioned with their product offerings. This was demonstrated by Continental’s strong performance in 2024 despite ongoing external uncertainties – with improved cost discipline, enhanced efficiency and a large number of technological innovations.

Exploiting growth potential in future technologies 

With its future-focused portfolio and top positions in all major markets, Aumovio is poised to take full advantage of the opportunities resulting from its planned independence. Philipp von Hirschheydt, Executive Board member for the current Automotive group sector and designated CEO of Aumovio, described it as a focused tech company, adding: “This name will stand for top technologies in software-based mobility. We have everything we need to achieve sustained success as an independent company.” He pointed out that in 2024 Automotive’s orders totaling around €19 billion stemmed from almost all major automotive manufacturers. One example of its cutting-edge technologies are the high-performance computers (HPCs) supplied for Volkswagen’s ID models. These supercomputers are the control centers of modern vehicles, consolidating the management of a wide range of functions including airbag deployment, mobile phone integration and automatic climate control. “The future of mobility has many facets,” said von Hirschheydt. “To meet these challenges and create even more value, Aumovio will adapt more flexibly to regional markets.”

Alongside software and hardware solutions, displays and brake systems, von Hirschheydt highlighted Aumovio’s expertise in autonomous driving technologies. An example is its collaboration with Aurora in the USA, where the first fully self-driving trucks are expected to hit highways by 2027. 

Strong industrial business 

ContiTech’s planned independence also offers it tremendous opportunities to maximize value creation. The expertise of the material solutions specialist with a strong industrial focus is in high demand, as demonstrated by a recent order for the world’s strongest conveyor belt. Measuring up to 3.2 meters wide, it can pull a total weight of 3,200 metric tons – equivalent to more than 300,000 car tires. With its proven products made from rubber and plastics, ContiTech is also increasing its growth opportunities in future markets, for example as a producer of special hoses in cooling systems that protect servers in data centers against heat damage. As artificial intelligence gains traction and is used in more and more applications, demand is also rising for servers that can handle this data – and the critical infrastructure that supports them.

ContiTech has also proven its expertise in hydrogen refueling. With the high demands this energy source places on materials, the hoses supplied by ContiTech have to withstand high pressure and offer flexible handing as well.

“This is just one of the many ways we’re sharpening and refining our focus in ContiTech. Our goal is an 80 percent share of industrial business,” said Setzer. That is also why Continental is selling the Original Equipment Solutions business area – its business with rubber products for car manufacturers. 

Leading tire manufacturer and pioneer

Setzer underlined the role of the Tires group sector – and thus of the future Continental AG – as a leading provider of premium tires. Continental’s summer, winter and all-season tires regularly receive top marks for performance, comfort and sustainability in independent tests. In March of this year, Continental was named “Tire Manufacturer of the Year” at the Tire Technology International Awards for Innovation and Excellence. In addition, its tire plant in Lousado, which rolled out carbon-neutral production last year, came first in the “Environmental Achievement of the Year – Manufacturing” category. Independent accolades such as these are further proof of Continental’s ongoing commitment to combine tire innovation with sustainability. “They confirm we are pioneers,” said Setzer. The figures speak for themselves: 18 of the world’s 20 highest-volume manufacturers of electric vehicles put their trust in tires from Continental.