At the beginning of September, Continental announced that it would tighten its current savings. Now the auto supplier is following its words with deeds: Another plant is about to be closed. The union IG BCE complains: "This is simply a deletion for the sake of deletion."
Due to the sales crisis and structural change in the automotive industry, Continental wants to close even more locations than previously known. The tire plant in Aachen is to be closed by the end of 2021, confirmed the Dax company 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 only at the beginning of September that it would tighten its current austerity course and restructuring of the group. So far, however, the tire division is still considered comparatively profitable. The IG BCE therefore strongly criticized the plans: "The deforestation can neither be justified with the transformation of the auto industry nor with the corona crisis," said the union's board member, Francesco Grioli. "This is simply deleting for the sake of deleting it."
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 does not only depend directly on car production with auto parts, but also in the tire business with the initial equipment of new cars.
The slump in sales for the Hanoverians was strongest in business with electronics, sensors and braking systems, 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 restructuring program, the management had just specified and tightened its reduction plans. So far, however, it has primarily been about other business areas at a number of threatened locations.
Globally, 30,000 jobs are likely to be affected
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. In Mühlhausen, Thuringia, Conti also wants to part with the local site. It is planned to close the plant by the end of 2022. Production is to cease in 2024 in Roding, Bavaria.
Plants in Italy and the USA are also being scrutinized. According to the latest status, the company assumed that there would be a global impact on 30,000 of the 232,000+ jobs. "That means that they will be changed, relocated or given up." 13,000 of the jobs in question are located in Germany.
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