HANOVER, Germany (Sept. 14, 2001)—Continental A.G. has decided not to sell its ContiTech technical rubber goods unit the group announced Sept. 13 two days after Chairman Stephan Kessel resigned and was replaced by Manfred Wennemer, who up to that point had been head of ContiTech.
The decision also follows news that negotiations with the preferred buyer for ContiTech had broken down. The company now will “actively include its (ContiTech's) various business units in the corporate strategy,” Conti said in a prepared statement.
This decision will not change the alignment of the corporation following Conti's purchase earlier this year of the automotive electronics specialist Temic GmbH, Conti said. Conti originally had put ContiTech up for sale to help defray the costs of acquiring Temic and reorganizing into a total chassis systems supplier.
Mr. Kessel's resignation was caused by disagreements about the strategic direction of the group, a Conti statement said. He was active in the decision to sell ContiTech, seeing the group's products as no longer core businesses for the new Conti in its role as an integrated supplier of chassis systems