HANOVER, Germany — Continental A.G. is in the process of realigning its ContiTech group sector with the aim of increasing effectiveness and efficiency as well as customer- and market-proximity.
The move will focus on expanding ContiTech's industrial business into three regional areas, while consolidating its automotive business into one unit, ContiTech said on Feb. 2.
Effective in May, the realignment has two strategic priorities for further development of the industrial business and "creating synergies" for automotive activities, according to ContiTech.
The goal is to transition the maker of largely rubber-based parts for the automotive, transport, industrial and other markets from "a traditional product supplier to a provider of integrated solutions."
The reforms are also intended to increase speed and efficiency by accelerating decision-making, streamlining central functions and reducing hierarchical levels.
The industrial business is being divided into three business areas: Industrial Solutions Americas; Industrial Solutions APAC (Asia and Pacific); and Industrial Solutions EMEA (Europe and the Middle East).
The majority of ContiTech's automotive activities will be consolidated in the "'original equipment solutions" business area, which will operate globally.
ContiTech also is introducing a new position for the chief technology officer (CTO) to drive the expansion of its materials expertise.
The CTO will oversee "comprehensive and cross-functional" research activities as well as the development of "material-driven, value-creating and sustainable" solutions for customers.
"We are enhancing our profile and are becoming more efficient by consolidating our activities," CEO Philip Nelles said.
The changes, he said, "will increase our competitiveness and create a strong foundation for our future success in terms of earnings and growth."
The target is to be a "technological leader for material-driven solutions" within the company's industries and markets, Nelles said.
