The automotive supplier Continental is considering closing nine of the world’s 32 power plants Powertrain. At least 4000 jobs would then be in danger. German locations could also be affected by the job cuts, it is said.
When crisis supplier Continental are apparently several works on the edge. In the course of the announced redevelopment, sites would also be reviewed, a spokesman confirmed on Friday, without giving any details. “It’s out of the question that we’re reviewing all business units.” The Rubber division was also affected by the tire business.
The “Hannoversche Allgemeine” reported that the Dax Group wanted to close down nine of its 32 plants worldwide in the powertrain sector. Locations in Germany would also be suitable for job cuts. Altogether are up to 4000 jobs in danger.
Neither the company nor the union IG Metall provided information on the extent of possible plant closures or the amount of job cuts. “We assume that the common understanding helps make the upcoming change socially acceptable,” said Ralf Schamel, who is on the board of the union for Continental responsible. The goal must be to secure employment.
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Continental had after a fall in profits in the second quarter In early August, announced a program to ensure the financial strength in the face of the rampant slump and to increase competitiveness. The resulting need for action should be discussed with the employee representatives. These talks are now running according to the company.
At the end of July, Conti had already cut its business targets following a profit slump and justified this with the worldwide decline in vehicle production and uncertainty caused by the trade dispute between the USA and China.
Other suppliers and major car manufacturers such as BMW and Daimler are also struggling with the consequences of the economic downturn.Contis CFO Wolfgang Schäfer had told Reuters at the presentation of the quarterly figures, the tire and electronics suppliers are preparing for the relocation of parts of the production abroad because of the tariff conflict and threatening further trade restrictions. That could also lead to a job reduction in Germany. The carmakers would see more and more forced to rethink their location strategy due to the tariff discussion. “As a result, that would also apply to us,” Schäfer said.
Parts production could partly be outsourced abroad
At the same time, the Group had announced several course changes in response to the accelerated transformation of the automotive industry into e-mobility. This mainly affects the drive business, which is reflected in the declining demand for internal combustion engines.
The Group announced a long time ago the conversion to a holding company with three pillars: the Rubber Group, the Automotive Division with the subcontracting business and the drive business, which is to be brought under the name “Vitesco Technologies” on the stock exchange. The company spokesman clarified that the employment guarantee given to employees of Powertrain in Germany until 2023 “applies only to measures in connection with the conversion to a legally independent company and with a view to preparing for the partial listing”.
With the promise Conti had wanted to eliminate concerns of the workforce because of the spin-off. Measures in individual plants or divisions in a different context have been expressly excluded. Therefore, the union can not rely on a protection against job cuts for all employees.
rei / reuters