Continental widens restructuring measures

November 21, 2019 //By Christoph Hammerschmidt
Continental widens restructuring measures
Under the pressure of the switchover to electromobility, automotive technology supplier Continental, is intensifying its restructuring. Among other things, the company withdraws from the business with hydraulic technology for combustion engines. Production is reduced or discontinued at several locations.

At its meeting on November 20, Continental's Supervisory Board approved structural adjustments at the Roding and Limbach-Oberfrohna sites in Germany, Newport News (USA) and Pisa (Italy). These plans have been discussed for some time. With its resolution, the Supervisory Board supports the Executive Board's decision to terminate the business with hydraulic components for gasoline and diesel engines in the coming years. The background is the disruptive switchover of the automotive industry to electromobility. This is associated with a drastic decline in demand for hydraulic components.

In addition, the company intends to phase out series production of display and operating technologies at a further location in Germany. At the Rubí site in Spain, where analog display and operating instruments are also manufactured, talks are to be held about a conversion of production; around 760 employees will be affected there.

The current measures affect slightly more than 5000 jobs worldwide. However, these measures are only a first step. As part of its "Transformation 2019 - 2029" program, the company plans to cut around 15,000 jobs worldwide by 2023. With this transformation, the company wants to prepare itself for the accelerated digitization and electrification of mobility. "We are now concentrating on our profitable growth areas. These include assisted, automated and networked driving as well as services for mobility customers," explained Continental CEO Elmar Degenhard. Business with tires and industrial customers is also profitable and not affected by the restructuring measures.

 

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