Continental Carries Out Big Organisational Rejig for Future Mobility

Continental Carries Out Big Organisational Rejig for Future Mobility

Continental Carries Out Big Organisational Rejig for Future Mobility
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Continental’s Executive Board has decided to carry out a massive organisational realignment considered to be one of the biggest in its history, aimed at continuing its rapid growth path and reap full advantage of new future mobility potential. The Executive Board decided to create a holding structure of Continental AG under the new “Continental Group” umbrella brand, which will be supported by three strong business sectors – Continental Rubber, Continental Automotive and Powertrain.

According to the company, the reporting structure and the new names are to be used starting 2020. Continental will adopt a step-by-step approach to establish these business sectors or enhance them wherever necessary. This latest realignment requires approval of the Continental AG’s Supervisory Board as well as for the transformation of the Powertrain division into an independent legal entity with a new company name and management by the beginning of 2019. Subject to the approval of Continental AG’s Supervisory Board, the Powertrain division will be transformed into an independent legal entity with a new name in early 2019. Andreas Wolf, who is currently in charge of the Body & Security business unit in the Interior division, will assume responsibility of the new Powertrain company. The Powertrain division will continue to be in charge of all future business involving hybrid and electric drive systems and all current battery activities, in addition to the combustion engine business - for instance, the JV for 48-volt battery systems recently announced.

Further, Continental’s current Chassis & Safety and Interior divisions will be reorganised and will become two business areas - “Autonomous Driving Technologies” and “Vehicle Networking Technologies" with their business results being reported in the new Continental Automotive group sector. The Autonomous Driving Technologies business will thus comprise automated and autonomous driving as well as all familiar chassis functions - for example, electronic & hydraulic braking, stability & chassis control, and electronic air suspension. The Vehicle Networking Technologies business area will deal with a vehicle’s internal connectivity as well as its external connectivity with other vehicles and traffic infrastructures. The details are expected to be announced by mid-2019. Both areas will be supported by a newly-created central Automotive Research and Development function, the company noted.

The creation of a central Automotive R&D function will support the realignment of the automotive business. In this new function, the development activities of the current Interior and Chassis & Safety divisions as well as the R&D activities of the current central functions will be integrated, where they will play a more crucial role at the operational level.

The company said that approximately 12,000 to 15,000 software and hardware engineers will join together in a global Continental powerhouse for advanced development and application engineering. There will be some 17,000 further engineers in the two new business areas - Autonomous Driving Technologies and Vehicle Networking Technologies. The objective of this integration is to maximize R&D productivity and achieve a smooth, speedy product launch, which is crucial in the industries relevant for Continental, it said.

The company added that its two current divisions - Tires (“Tire Technologies” in the future) and ContiTech - will retain their independent organisational structure and their business results will be reported in the future Continental Rubber group sector. Continental is also preparing a partial IPO for the new Powertrain company, which could take place starting mid-2019. With this reorganization measures, Continental is all braced up to push forward with pioneering technologies aimed at continuing profitable growth, while exploiting future growth opportunities faster and more efficiently.

Dr. Elmar Degenhart, CEO, Continental, said that the company is heading into future mobility at full speed. Continental’s proven readiness and capacity to change provides it an outstanding competitive edge which it want to use to the fullest, he added.

Suhrid Barua
Author: Suhrid Barua
Suhrid has a predilection for anything concerning the auto industry and at Auto Tech Review he gives vent to this passion – he has a special liking for commercial vehicles and electric vehicle ecosystem. Suhrid tweets @ProsJunoon