Continental Reshapes Business for Electric Vehicle Era
Continental, a leading automotive supplier, is reshaping its business to adapt to the electric vehicle transition. The company plans to reduce its automotive business units, consolidate facilities, and streamline its research and development division. Meanwhile, it is also developing new software-defined vehicle technologies.
The German auto supplier aims to save 400 million euros ($430.8 million) annually from 2025 by reducing its R&D spending to 9% by 2028, down from an estimated 12% in 2023. This move is expected to affect around 1,750 R&D positions by the end of 2025.
In line with this, Continental plans to consolidate its facilities in Germany's Rhine-Main region, potentially impacting 82 locations and 3,400 staff members, including 380 roles at software subsidiary Elektrobit. The company has not yet made a final decision on this matter.
To adapt to the changing automotive landscape, Continental is also developing new software-defined vehicle technologies. These innovations were actively presented and developed between 2024 and 2025, with notable showcases at Auto Shanghai 2025. However, the initial development timeline for these technologies is not explicitly stated. Continental's automotive segment was spun off as AUMOVIO at the stock market on September 18, 2025, marking a strategic milestone in this process.
Continental's strategic overhaul aims to improve long-term competitiveness and adapt to the electric vehicle transition. The company expects to save 400 million euros annually from 2025 by reducing R&D spending and consolidating facilities. Meanwhile, it continues to invest in new software-defined vehicle technologies, demonstrating its commitment to innovation in the face of industry changes.
