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German car parts and tire manufacturer Continental AG has announced plans to cut costs by more than € 1 billion a year by 2023 and expand a restructuring program that could affect up to 30,000 jobs worldwide.
According to Bloomberg, about 90 percent of the restructuring measures will be implemented by 2025, Continental said, adding that operations in Germany will be a serious target, as around 13,000 jobs will be moved to other areas or eliminated.
The auto industry is facing the biggest crisis in 70 years and component suppliers are “particularly affected “said Elmar Degenhart, CEO of Continental. According to him, the group decided to focus on “maximum competitiveness in all locations and emphasis on growth areas”, to write Agerpres.
In addition to the effects of the COVID-19 pandemic, the automotive industry is under pressure to invest in new technologies as the era of internal combustion engines draws to a close and car-sharing services reduce demand. of new cars.
The Continental Group already embarked on a major restructuring process last year, when the world economy slowed and automobile production fell. But the initial plan to restore operating margins, which aimed to eliminate 20,000 jobs around the world, has become insufficient in the context of the coronavirus pandemic.
The 5 continental divisions are represented in Romania. Continental has seven production units and four engineering centers in Timisoara, Sibiu, Carei, Nadab, Brasov and Iasi.
At the end of 2018, Continental had more than 20,000 employees in Romania, of which a third were engineers and computer scientists in research and development centers.
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