Continental splits into three units amid shifts in auto industry

referring to The Frankfurt-listed maker of tires, powertrains, interior electronics, chassis components and sensors will split into three separate companies under a holding. "Continental Rubber," focused on the traditional tire business, may also seek a stock listing in the future. The third company, "Automotive," will combine traditional auto parts with the autonomous driving components of the future. Continental's announcement follows a general trend in the automotive industry as automakers and suppliers look at decentralizing their integrated operations to adapt more quickly to changes in the industry. Continental's Powertrain business might start producing solid state battery cells, but it will only decide on the potential investment no earlier than 2021.

Rebates protect Canada's auto industry from retaliatory tariffs

They could protect the auto industry's supply contracts covering raw materials and parts, which often cross borders several times before a vehicle is finished. "That provision in the notice is overwhelmingly directed at the auto industry," said Jesse Goldman, a trade lawyer at Borden Ladner Gervais. The Canadian Vehicle Manufacturers' Association needs to do more analysis before commenting on whether drawbacks could protect his industry, President Mark Nantais said. Flavio Volpe, president of the Automotive Parts Manufacturers' Association, said some companies that make stainless steel parts or hardened steel tools in Canada could benefit. Volpe said just over half of Canadian-made auto parts are exported.

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collected by :Catlin Logan

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