Continental AG facts for kids
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The Continental AG Headquarters in Hanover, Germany
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| Aktiengesellschaft | |
| Traded as | FWB: CON DAX Component |
| Industry | Automotive Manufacturing |
| Founded | 8 October 1871 |
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Area served
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Worldwide |
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Key people
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| Products | Tires, brake systems, powertrains, chassis components, automotive safety, vehicle electronics |
| Revenue |  €41,030 million (2022) |
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Operating income
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 €754.8 million (2022) |
| €66.6 million (2022) |
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| Total assets | €37,926.7 million (2022) |
| Total equity | €13,735.0 million (2022) |
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Number of employees
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199,038 |
| Parent | Schaeffler Group |
| Subsidiaries | General Tire Continental Automotive Systems Hoosier Racing Tire Matador Phoenix AG VDO |
Continental AG, often called Continental or just Conti, is a big German company. It makes many parts for cars and other vehicles. These include tires, brake systems, and vehicle electronics. They also make parts for safety, engines, and the car's frame. Continental is one of the largest suppliers for the car industry worldwide. It is also one of the top tire makers. The company is based in Hanover, Germany.
Continental sells tires for cars, motorcycles, and bicycles all over the world. They also own other tire brands like General Tire and Matador. Many big car companies use Continental's products. These include Volkswagen, Ford, BMW, and Toyota.
Contents
History
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Continental started in 1871 as a company making rubber products. Its first name was Continental-Caoutchouc und Gutta-Percha Compagnie. In 1898, Continental began making vehicle tires without patterns. This was a big success. By 1904, Continental was the first company to make grooved tires for vehicles. They also invented a special tire for touring cars in 1905 that could be easily removed.
Around 1910, synthetic rubber became important for car tires. In the late 1920s, Continental joined with other rubber companies. This created the largest rubber company in Germany, "Continental Gummi-Werke AG."
During World War II
When the Nazis came to power in Germany in 1933, Continental, like many other German companies, had to follow their rules. The company's leaders were required to join the Nazi party. Jewish members of the company's board were forced to leave. During World War II in the 1940s, Continental used forced labor in its factories.
After the War
After the war, Continental continued to grow. In 1999, they partnered with FATE to make tires in Argentina. This helped them sell tires in South America.
In 2001, Continental bought Temic, a company that made car electronics. They also bought Phoenix AG, a rubber and plastics company, in 2004. In 2006, they acquired the car electronics part of Motorola. A big step was buying Siemens VDO from Siemens AG in 2007. This made Continental a major player in car electronics. In 2007, they also started building a factory in Costa Rica. This factory would make parts for engines for North America.
In 2008, another company called Schaeffler Group tried to take over Continental. By 2009, Schaeffler succeeded in putting its own leader in charge of Continental.
In 2012, Continental was ranked as the third-largest global supplier of car parts. On September 6, 2012, Continental rejoined the DAX index. This is a list of 30 important German companies. The Schaeffler family's investment group now owns 46% of Continental's shares. In 2018, Continental bought Kmart Tyre & Auto Service in Australia.
In 2017, Continental became the official tire sponsor for the Tour de France cycling race. This partnership will last until 2027.
In November 2020, Nikolai Setzer became the new CEO of Continental.
In February 2021, Continental bought a small part of Recogni. This is a German-U.S. start-up working on autonomous driving technology. Recogni is developing a new computer chip for recognizing objects. This chip uses artificial intelligence to help self-driving cars "see" in real time.
In December 2021, China put pressure on Continental AG. This was due to a disagreement between Lithuania and China. China wanted Continental to stop doing business with Lithuania.
In April 2022, Continental started making tires in Russia again. This was despite many countries putting sanctions on Russia.
In February 2023, Continental AG announced job cuts. They planned to cut about 7,150 jobs in their car parts division.
Interior Division
The Interior Division at Continental focuses on the inside of cars. It has five main business areas:
- Body & Security
- Commercial Vehicles & Aftermarket
- Infotainment & Connectivity
- Intelligent Transportation Systems
- Instrumentation & Driver HMI
- Autonomous Mobility
The Body & Security team works on vehicle electronics and systems that control the car's cabin. They have research and development centers all over the world. This helps them reach almost every market.
Schaeffler Takeover
In 1998, Continental decided to buy ITT Industries' brake and chassis business. This cost $1.93 billion. Later, in 2008, the Schaeffler Group tried to buy Continental. Schaeffler is a family-owned company that makes bearings and car parts.
Continental had spent a lot of money buying Siemens VDO in 2007. This made them seem like an easy target for a takeover.
In August 2008, Continental agreed to be bought by the Schaeffler Group. The deal valued Continental at about €12 billion. Schaeffler agreed to own less than 50% of Continental for four years. They also promised to support Continental's plans. Continental's CEO, Manfred Wennemer, resigned. Karl-Thomas Neumann took over. Less than a year later, Schaeffler's CEO put Elmar Degenhart in charge of Continental. At a meeting in 2013, Schaeffler said they would end their investment agreement with Continental in May 2014.
Continental Tire the Americas, LLC
Continental Tire entered the North American tire market in 1987. They bought General Tire and formed Continental General Tire Corp. This was part of a trend where other tire makers like Bridgestone and Michelin also entered the American market.
The main office for the North and South American tire divisions is in Fort Mill, South Carolina, United States. The North American office for the car systems division is in Auburn Hills, Michigan. Continental also has a research and development center in Silicon Valley. There, they work on technologies for autonomous driving.
From 2002 to 2005, the company sponsored a college football game in Charlotte, North Carolina. It was called the Continental Tire Bowl. Continental was a big employer in Charlotte at that time.
In 2011, Continental Tire announced they would build a new factory in Sumter, South Carolina. This factory would cost about $500 million and create 1,600 jobs by 2020.
In February 2016, they announced another factory. This one would be in Clinton, Mississippi, for commercial tires. It would cost about $1.4 billion and employ 2,500 people.
In October 2016, Continental Tire bought Hoosier Racing Tire.
Automotive Electrical Energy Systems
Continental works on systems that store electrical energy in cars. They were one of the companies that wanted to provide the battery for the Chevrolet Volt. This car was an extended-range electric vehicle. Continental is a main contractor for a system that uses lithium-ion batteries.
Continental keeps looking for new ideas in car energy storage. They develop solutions for gasoline and diesel engines. They also work on fast-growing electric car systems. They offer many technology options to car makers. This helps car makers create custom electric systems. These systems make cars more efficient and produce less pollution.
Automotive PACE Awards
The Automotive News PACE Awards celebrate new ideas in the car industry. In April 2016, Continental AG and Honda won an award. They won for their Bidirectional Long Range Communications (BLRC) System. This system lets car users operate a remote control key from far away. They can start the engine and climate control. The system also sends feedback from the car, like if it's locked. This system uses a small battery and a special radio receiver in the car. Honda and Continental developed it together. It first appeared in the Acura MDX in 2013.
In 2015, Continental AG won two PACE Awards. One was for their Bare Die High-Density-Interconnect (BD-HDI) Printed Circuit Board Substrate Technology. The other was for their Multi-application Unified Sensor Element (MUSE).
In 2018, Continental won a PACE Award for its Digital Micromirror Head-Up Display technology. They also won an Innovation Partnership Award with Audi. This was for their Safety Domain Control Unit (SDCU).
In 2020, Continental won a PACEpilot award. This was for their Virtual A-Pillar technology. It helps remove blind spots for drivers. PACEpilot awards recognize car technology innovations that are in the testing phase.
Executive Management
Chief Executive Officer
- 1973–1982: Carl Hahn
- 1991–1999: Hubertus von Grünberg
- 1999–2001: Stephan Kessel
- 2001–2008: Manfred Wennemer
- 2008–2009: Karl-Thomas Neumann
- 2009–30 November 2020: Elmar Degenhart
- 1 December 2020–present: Nikolai Setzer
Chairman of the Board
- Unknown–1989: Alfred Herrhausen
- 1999–2009: Hubertus von Grünberg
- 2009–2009: Rolf Koerfer (6 March–28 September)
- 2009–present: Wolfgang Reitzle
Acquisition of Veyance Technologies, Inc.
Continental AG bought an American rubber company called Veyance Technologies, Inc. This company is based in Fairlawn, Ohio. Veyance became part of Continental's ContiTech division. It now serves as the main office for ContiTech in North America.
The deal was approved by Brazil's antitrust authority in January 2015. The total cost of the purchase was $1.6 billion. Continental will sell some parts of Veyance's business. This includes its air springs business in Mexico and its steel-cord belting business in Brazil. This was done to address concerns from antitrust authorities. About 600 people work in these operations.
See also
In Spanish: Continental AG para niños
- Continental Automotive Systems – one of Continental's main divisions
- Hoosier Racing Tire – part of the racing tire division
- Vitesco Technologies
