Continental is making ready one other spherical of restructuring measures at its ContiTech rubber and plastics division because it seeks to adapt to weaker market situations and decrease its price base.
The transfer follows beforehand introduced actions that the corporate says are “now not enough”.
In January, the German automotive provider set out plans to close 4 vegetation and reduce operations at two extra websites, affecting round 580 positions at ContiTech.
Regardless of these steps, ContiTech’s “key markets and areas proceed to underperform and its price construction stays too excessive in contrast with competitors”, the corporate mentioned.
Continental government board member and ContiTech Group Sector head Philip Nelles added: “Price stress is rising attributable to a altering market atmosphere, slower development charges in key economies and industries, ongoing uncertainty from commerce conflicts and intensifying competitors – notably from China.”
The group is focusing on annual price financial savings of €150m ($172.73m) from 2028, with many of the discount anticipated to come back from administrative features.
Its new programme is because of be rolled out throughout all elements and ranges of the ContiTech organisation from 2026 and is to incorporate relocating actions, chopping jobs and revising inside processes.
Continental said that the exact variety of positions to be eradicated in Germany, and the best way the adjustments will probably be carried out, will probably be agreed with worker representatives.
Reuters, citing a works council supply, reported that as much as 1,500 further jobs could possibly be reduce at ContiTech as a part of the restructuring.
The corporate beforehand confirmed it is preparing to divest ContiTech as a part of a broader reorganisation of the group.
In line with Continental, many of the anticipated adjustments will have an effect on ContiTech operations in Hanover, the place sure actions are anticipated to be transferred to places in international locations with decrease price constructions.
Nelles mentioned: “Adjusting our price construction is critical whatever the deliberate sale of ContiTech and its future possession. A aggressive price degree is crucial for our long-term viability. We’re appearing decisively to unlock our medium- and long-term potential, which we firmly imagine in.”
“Continental plans additional restructuring at ContiTech with potential job cuts” was initially created and revealed by Just Auto, a GlobalData owned model.
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