This weekend, the German automotive supplier Continental announced on Saturday that it had reached an agreement to sell its ContiTech division to the American investment fund Lone Star for four billion euros, the latest step in a broad restructuring of the group.
Continental, confronted with the difficulties affecting the entire European automotive sector, is gradually narrowing its scope of activities to refocus on its historic core business of tire manufacturing.
The group signed an agreement for the sale of its ContiTech division, which manufactures and sells hoses, drive belts, conveyor belts, and seals to industrial customers, to the private equity fund Lone Star Funds, according to a press release.
In addition to the sale price of four billion euros, Continental could receive up to 250 million euros more in the coming years, depending on the performance of the business.
“With the planned sale of ContiTech, Continental completes its strategic realignment,” the group explained in the press release.
The transaction is expected to be completed by the end of 2026. A portion of the sale proceeds will be used to reduce the group’s debt, while about 2.5 billion euros will be returned to shareholders, it clarified.
The sector union, IGBCE, which represents employees of this division, said it had opposed the sale, without succeeding in stopping it.
Francesco Grioli, the union representative and a member of Continental’s supervisory board, called for dialogue with the future owner and opposed any further job cuts.
“This will meet our fierce resistance,” he said in an IGBCE press release.
ContiTech employs around 20,000 people across some 60 sites worldwide and last year achieved revenue of about six billion euros.
Last year, Continental split off a division specialized in automotive components, notably braking systems and sensors, to form a separate entity named Aumovio.
The group has also announced several thousand job cuts in recent years, as have other German equipment suppliers and carmakers.
In 2025, its revenue fell by 2% to 19.7 billion euros.
The sector is facing fierce Chinese competition, weak demand in key markets, and a difficult transition to electric vehicles.
