HANOVER, Germany—Continental A.G.'s supervisory board has approved the company's recently disclosed reorganization plan, which entails forming three group sectors under the umbrella of a new Continental Group.
The 20-member supervisory board also agreed with the transformation of Conti's Powertrain division into an independent legal entity with a new name by the start of 2019.
In a prepared statement, the supervisory board said it supports Continental's "rapid and profitable growth" and noted the "early and foresighted realignment of the organization opens up new possibilities and adds value for the company."
The board's decision was unanimous.
Conti confirmed that Andreas Wolf, currently heading up the Body & Security business unit, will assume responsibility for the new Powertrain company.
Conti unveiled July 18 its major realignment plans, which will see the group divided to three business sectors—Continental Rubber, Continental Automotive and an independent Powertrain division—by 2020.
Under the group-wide plan both the Tire unit—to be renamed Tire Technologies—and ContiTech will report business results under the future Continental Rubber group sector.
Continental has confirmed that it would retain ownership of the rubber business as the "nucleus and origin of the 147-year-old Hanover-based company."
According to Conti, the issuance of non-controlling interests, in the form of an IPO for example, is not planned at present, but is an option for the future.
Conti's supervisory board comprises 20 members in accordance with the German Co-determination Act and the company's articles of incorporation. Half the members of the supervisory board are elected by the shareholders in the shareholders' meeting, while the other half are elected by the employees of Continental A.G. and its German subsidiaries.