Conti workers transition to jobs at an arms factory.
Auto industry downsizing resulting in a win-win situation: As the auto industry sees a decline in jobs, defense contractors are seeking more workers. Continental employees in Gifhorn, currently experiencing job losses, may find new opportunities at Rheinmetall. Both companies have made the announcement. Initial plans involve moving up to 100 Continental staff from Gifhorn to Rheinmetall's Unterlüß location, approximately 55 kilometers away and also in Lower Saxony. At this new site, Rheinmetall intends to produce artillery ammunition, explosives, and part for rocket artillery. Around 500 new positions are planned.
Not only production workers will have the chance to switch: Rheinmetall is also considering hiring software experts, as Continental is also downsizing its software sector. The reports from "Handelsblatt" infer that Lindau am Bodensee employees, potentially facing job losses, could benefit from this, as the Rheinmetall location in Stockach am Bodensee, where the company develops electronic and optical systems, is a potential choice.
Continental isn't the only supplier that could aid Rheinmetall in hiring new employees. Bosch, ZF, and Mahle, also experiencing job cuts, are reportedly engaged in talks with Rheinmetall. A ZF spokesperson affirmed this: "Following ZF's decision to end production at its Gelsenkirchen site by the end of 2024, various reputable companies have contacted us in search of qualified workers - similar to the 'energy transition' special situation."
In total, up to 160,000 jobs could be affected in the auto industry. The arms industry, on the other hand, is growing due to the Ukraine conflict. Despite this, the auto industry is undergoing a mass layoff, as fewer workers are required for electric vehicle manufacturing. Continental is slashing thousands of jobs within its automotive department alone.
Continental is currently informing employees about potential openings at Rheinmetall and providing any necessary training. They have already arranged for employee transfers with Siemens Mobility and Stiebel Eltron.
This year, Rheinmetall's operational income significantly increased by 60% to 134 million euros. Their revenue also saw a 16% surge, totaling nearly 1.6 billion euros. Furthermore, their order backlog has expanded by around 43% and their order pipeline reached a record high of 40 billion euros. Rheinmetall forecasts a 40% rise in overall revenue.
