BERLIN — German auto provider Continental is contemplating the sale of the automotive division at present bundled inside ContiTech, Supervisor Magazin reported on Monday, citing firm sources.

The doable sale could be a part of a wider reorganization of the corporate being deliberate by Supervisory Board Chairman Wolfgang Reitzle and the chief board round CEO Nikolai Setzer, the German enterprise information publication added, citing the sources.

Continental has taken a collection of steps in recent times to restructure and enhance profitability as its market capitalization tumbled to 13 billion euros ($14.17 billion) from 50 billion in 2018.

The corporate mentioned in February it was reorganizing ContiTech from six divisions into one in every of Europe, the Americas and Asia Pacific, whereas bundling its automotive actions right into a separate unit geared in the direction of electromobility.

In response to Supervisor Magazin, that unit — specialised in belts and sealing programs with income of greater than 2 billion euros ($2.2 billion) — is because of be separated from the enterprise inside two years. It could possibly be bought, cut up up additional or merged with one other firm, the publication reported.

The extremely worthwhile tires enterprise and non-automotive a part of ContiTech could be retained as the long run core, it mentioned, quoting an unnamed high supervisor who warned of the specter of a workforce rift if the tires enterprise continued financing the vehicles enterprise.

Continental declined to touch upon the report.

The corporate mentioned in Could that ContiTech could be realigned with the purpose of enhancing its affect and effectivity, with out offering additional particulars.

Continental ranks No. 9 on the Automotive Information listing of the highest 100 world suppliers with worldwide gross sales to automakers of $25.4 billion in 2022.