Continental wants to close another plant

Is it due to the corona crisis or structural change? Companies are cutting jobs in the automotive industry. Continental is now closing another location.

New construction of the corporate headquarters of the automotive supplier Continental in Hanover

CDue to the sales crisis and structural change in the auto industry, ontinental plans to close even more locations than previously known. The tire plant in Aachen is to be closed by the end of 2021, the Dax company confirmed on Tuesday after information from the IG BCE union. 1800 jobs would be affected. However, this has not yet been finally decided.

The supplier, which is struggling with high losses, announced at the beginning of September that it would tighten its ongoing austerity and corporate restructuring. So far, however, the tire division is still considered to be comparatively profitable. The IG BCE therefore strongly criticized the plans: “The clear cutting cannot be justified with the transformation of the auto industry, nor with the corona crisis,” said the union’s board member, Francesco Grioli. “That is simply deleting for the sake of deleting.”

Car manufacturers had stopped their factories around the world for weeks in the second quarter because the dealerships also had to close due to the coronavirus risk and the dealers could not sell vehicles. Call-offs from suppliers have also been put on hold. However, Conti not only depends directly on car production with auto parts, but also in the tire business with the initial equipment of new cars.

Plenty of renovations planned

The slump in sales was strongest among the Hanoverians in business with electronics, sensors and brake systems, among other things, but also in the drive division. The tire and plastics technology business got off a little less, but also suffered a severe setback with minus one third.

As part of its savings and renovation program, the management had just specified and tightened its reduction plans. So far, however, it has mainly been about other business areas at a number of threatened locations. For the Babenhausen plant in Hesse, for example, Continental announced last year that it would end production of control instruments for cars there by 2025. The plant in Karben with 1,100 employees is also on the cross-off list, according to the employee representatives – but according to the company, nothing has been decided there recently.

to open
Dax group: Continental – supplier for Hitler’s warImage: Continental

In Mühlhausen, Thuringia, Conti also wants to part with the location there. It is planned to close the plant by the end of 2022. In Roding, Bavaria, production is to be discontinued in 2024. Plants in Italy and the United States are also being scrutinized.

According to the latest information, the company assumed that there would be a global impact on 30,000 of the more than 232,000 jobs. “That means they will be changed, relocated or given up.” 13,000 of the jobs in question are located in Germany.