Continental launches savings program in automotive supplier division
The automotive supplier and tire manufacturer Continental wants to make its ailing automotive supplier division profitable again by cutting thousands of jobs. From 2025, an annual cost reduction of 400 million euros is to take effect in the administrative area, as the DAX-listed company announced in Hanover on Monday. Among other things, business areas will be bundled more closely. The measures are intended to speed up decision-making processes and increase the efficiency of research and development expenditure.
According to Conti, it is not yet clear exactly how many jobs will be affected. However, the number is likely to be in the mid four-digit range, it said. At the weekend, "Manager Magazin" reported that around 5500 jobs would be lost worldwide. Most recently, the division had 102,574 employees, compared to 203,593 for the Group as a whole.
"These measures will increase efficiency and effectiveness and strengthen our competitiveness," said divisional CEO Philipp von Hirschheydt. Conti's automotive supply business has been in crisis for some time and is struggling to operate in the black in the business with brakes, interior fittings, sensors and electronics. Like others in the industry, Conti must also invest heavily in future technology. "Our goal is a sustainably profitable division that can invest in its future on its own," said von Hirschheydt.
The automotive supplier division of Continental, which provides components such as brakes, interior fittings, sensors, and electronics, is seeking to improve its financial situation by partnering with more efficient car suppliers. The cost reduction strategy involves streamlining business areas and reducing administrative expenses by 400 million euros annually.
Source: www.dpa.com
