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Continental CEO Confident About Parts Spinoff Timing, FAZ Says

Nikolai Setzer, chief executive officer of Continental AG, reveals the new UltraContact NXT tire during a new conference in Frankfurt, Germany, on Wednesday, June 14, 2023. Continental has been broadening its supplier base and renegotiating procurement costs as auto-industry suppliers such as Robert Bosch, ZF Friedrichshafen and Michelin continue to grapple with inflationary pressures Photographer: Ben Kilb/Bloomberg (Ben Kilb/Bloomberg)

(Bloomberg) -- Preparations to spin off Continental AG’s car parts business are on track, Chief Executive Officer Nikolai Setzer said in an interview published on Sunday.

In a conversation with Frankfurter Allgemeine Zeitung, Setzer said he was confident the move would go ahead as planned, with his focus on enabling all segments of the firm — tires, automotive and ContiTech — to act more independently, flexibly and “faster and closer” to the market.

“The aim is to create a lean, focused holding structure by the end of 2025,” Setzer said. “It is important that we gradually transfer the tasks and functions of the group to the divisions.”

Bloomberg reported last week, citing people familiar with the matter, that the autos supplier was pushing ahead with preparations for a separation of its car parts business, even as it grapples with recalls related to faulty braking systems. 

Board member Philipp von Hirschheydt would continue to run the automotive division after the planned spinoff, Setzer told FAZ, noting that his own contract runs until 2029.

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