Continental
A shift of production abroad could lead to a reduction of jobs in Germany.
Dusseldorf The talks are still in progress Continental and the union representatives. But now the first details seep out, which extent of the renovation process could have with the automotive supplier from Hanover. The “Hannoversche Allgemeine” reportsthat apparently nine out of 32 factories in the propulsion sector worldwide could be closed and 4,000 jobs were at risk. German locations are also affected.
In fact, the union and the corporation had a job security for employees of the drive sector Germany agreed until 2023. However, according to one company spokesman, this guarantee is “only for measures in the context of the transformation into a legally independent company and with a view to preparing for the partial listing”.
The Group has long announced the conversion to a holding company with three pillars: the Rubber Group, of the Automotive division with the supplier business and the drive business, which is to be listed on the stock market under the name “Vitesco Technologies”.
According to Ralf Schamel, the responsible company representative at the board of the union IG metalHowever, the report is inaccurate in terms of the extent of austerity measures. “The IG metal can not confirm the number of nine locations worldwide to close, “said Schamel. “We assume that the common understanding helps to make the upcoming change socially acceptable.”
The goal must be to secure employment. “IG Metall therefore demands the development of new business models and quantitative and qualitative personnel planning for the next three to five years,” says Schamel.
Continental Like many other suppliers and carmakers, it is also struggling with the consequences of the economic downturn. At the end of July, the group had its Correct downward forecast for the current financial year, In presenting the half-year figures, the Group had signaled that there was a need for action in terms of competitiveness. Plant closures and job cuts were not excluded.
Since then, talks have been going on with the union representatives. Whether the measures published by the “Hannoversche Allgemeine” were discussed, a Continental spokesman did not want to comment.
CEO Elmar Degenhart had most recently hinted in a conversation with analysts in London that concrete results from talks with the union can not be expected before October.
However, it should become clear that the supplier from Hanover is currently playing through all possibilities. Not only the drive division and thus the segment with the lowest margins in the group could be affected by job cuts. Jobs are also at stake in the Rubber (tire business) and Contitech (industrial business) divisions.
Gradual farewell to the burner
CFO Wolfgang Schäfer had already hinted at the publication of the figures in August that all divisions are being reviewed. In turn, Continental CEO Degenhart said he wanted to “respond to the declining market with strict cost discipline and increased competitiveness”.
Group Works Council Hasan Allak had said on presentation of the half-yearly balance sheet that he does not assume that would be affected in case of job cuts jobs at German sites.
In addition to the economic challenges, Continental is also struggling with the structural changes in the automotive industry. The shift towards electromobility is reducing the demand for internal combustion engines, especially in the drive business.
Continental is therefore starting to gradually phased out individual components for internal combustion engines. Thus, the business with hydraulic components is no longer being expanded. This includes the production of injectors for petrol and diesel engines.
In addition, Continental is reviewing the exhaust after-treatment and fuel-extraction components business. In contrast, the Group’s propulsion division, which will operate under the name Vitesco Technologies in the future, intends to focus even more strongly on electromobility in the future.
Despite the challenging restructuring of the drive business, Conti wants to lower its investment ratio. “Planned investments are being put to the test. However, we are holding on to construction projects that have already begun, such as new plants, “said Schäfer on the presentation of the half-year figures. “Overall, however, we will adjust our investment ratio. So far, this should be over eight percent. Now we are planning with a quota just under eight percent. “