Continental AG has lined up banks to help with the separation of its struggling car parts business, moving ahead with the plans despite recalls related to faulty braking systems it supplied.

Continental Tire announced Sept. 19 that Dallas-Fort Worth would be home to the company’s first fully owned tire distribution center in the United States.

Continental AG shares rose after improving returns at its struggling car-parts unit, which the German company may spin off in its biggest-ever restructuring.

Continental AG is considering spinning off and listing its struggling automotive business to separate it from the German parts maker’s more successful tire operations.

Continental AG expects North American commercial vehicle replacement tire sales to rise between 2% and 4% year-over-year in 2024, the German tire manufacturer said.

Continental Chief Financial Officer Katja Garcia Vila won’t extend her contract and plans to leave the auto supplier she joined nearly three decades ago.

Continental AG declined as the company embarks on a deep overhaul of its underperforming auto components business in a slowing vehicle market.

Continental AG slashed its expectations for North American commercial vehicle replacement tire sales in 2023.

Continental AG, one of Europe’s top car parts makers, is studying the sale of automotive assets, including its autonomous mobility business as it comes under growing pressure to shore up its profitability, people familiar with the matter said.

Weaker-than-expected North American and European commercial vehicle replacement tire sales in the second quarter of 2023 and through the remainder of the year forced Continental to cut revenue guidance for its tire unit and the company as a whole.