Continental Sees Weak Sales in Auto Unit’s Spinoff Year
- German company warns of challenging market conditions
- Car industry downturn is taking its toll on suppliers
Continental AG has so far stuck to plans to carve out its auto unit by the end of 2025.
Photographer: Ben Kilb/BloombergThis article is for subscribers only.
Continental AG said its automotive unit will struggle to increase sales this year as the German supplier pushes ahead with plans to spin off the ailing division despite the car industry downturn.
Sales will be burdened by the “challenging market environment,” Continental said ahead of a call with investors and analysts. The company expects cost cuts will help offset higher wages and buoy the unit’s profitability in 2025. Auto division sales for 2024 will be at the “very lower end” of guidance.