Continental’s Automotive group sector in Frankfurt, Germany, has recently made significant strides towards its planned independence in order to continue playing a key role in shaping the technological transformation in the automotive industry. The decision to suspend the carve-out of the User Experience business area for vehicle display solutions, announced in December 2023, marks a strategic shift in the sector’s future direction.
The User Experience business area, which focuses on vehicle display solutions, will now remain part of the Automotive group sector. Pavel Prouza, who previously led a product segment, will take over the management of User Experience. This decision reflects the sector’s commitment to maintaining its expertise in this critical area of automotive technology.
Meanwhile, Boris Mergell, the former head of User Experience, will now oversee the Safety and Motion business area. This division is responsible for driving safety and vehicle dynamics solutions, highlighting the sector’s dedication to advancing safety and performance in the automotive industry.
The planned independence of the Automotive group sector is based on a strategic review conducted by Continental’s Executive Board. The decision to further evaluate the possibility of spinning off and listing the sector on the stock market underscores the sector’s commitment to long-term growth and innovation.
The Executive Board is expected to make a final decision on the spin-off in the fourth quarter of 2024. Pending approval from the Executive Board, Supervisory Board, and the 2025 Annual Shareholders‘ Meeting, the spin-off is projected to be completed by the end of 2025. This move reflects the sector’s ambition to operate as an independent entity, allowing for greater flexibility and focus on its core competencies.
With around 100,000 employees and sales of approximately €20.3 billion in the past fiscal year, the Automotive group sector is a significant player in the automotive industry. The sector’s strong technological and system expertise, combined with its vertical integration, has enabled it to establish a leading market position in innovative brake and comfort systems, sensor solutions, and displays.
Moreover, the sector has made significant advancements in developing software, architecture platforms, and assistance systems for the emerging market of software-defined and autonomous vehicles. This strategic focus on cutting-edge technology positions the Automotive group sector as a key player in shaping the future of the automotive industry.
In conclusion, Continental’s Automotive group sector’s decision to pursue independence and continue its technological advancements underscores its commitment to innovation and growth. By maintaining its expertise in critical areas such as User Experience and Safety and Motion, the sector is well-positioned to lead the way in shaping the future of the automotive industry.