Tuesday, October 27

Continental Board Approves Reorganization Plan


Source: Continental announcement

HANOVER, Germany – The Supervisory Board of Continental AG approved the structural measures at the German locations Aachen, Karben and Regensburg as well as the termination of the joint venture with Osram. As things stand, all of the comparable structural measures in the Transformation 2019–2029 program that require Supervisory Board approval for Continental’s locations in Germany and abroad have been decided. This does not include any possible disposal of specific business segments and operations included in the program that require approval. To protect company interests, Continental currently will not provide any further details.

Prof. Wolfgang Reitzle, chairman of the Supervisory Board, commented on the decision of the Supervisory Board, said, “The fundamental structural transformation of the automotive industry and the challenges presented by the economic and market environment have never been greater. They call for particular entrepreneurial courage and determination.

Related post:
Continental Expands Restructuring

“With the resolutions approved today by the Supervisory Board, the foundation for the necessary transformation of Continental has been laid. We have thus substantially enhanced its competitiveness and increased its future viability. We are very aware that the process the automotive industry and we are going through now is indeed painful, and it will continue in the coming years.

“At the same time, it is opening up new and profitable growth opportunities in a world of mobility that is undergoing fundamental change. Continental is now well positioned to do this. I am firmly convinced that the company will emerge from this unprecedented transformation process all the stronger.”

Continental CEO Dr. Elmar Degenhart explained, “The current crisis is the largest, most severe one we have seen in the past 70 years. So the aim of our plan is now to prepare for our sustainable success and to ensure the future viability of our organization.

“As important as today’s resolutions are for our future, the consequences can be just as painful for the employees affected. We are deeply moved and saddened by their fears and concerns. We are doing everything in our power to limit the potentially harsh effects of our plans to what is only necessary. We are trying to mitigate these effects and make them socially acceptable and fair. At the same time, we are responsible for Continental’s future and thus for all employees in 59 countries and markets.

“That is why we have looked for sustainable solutions and carefully considered them. None of the decisions were easy for us. In total, about 30,000 jobs will be affected by these worldwide. This does not automatically mean that there will be 30,000 layoffs, which are always our very last resort. So we will now work together with the employee representatives to find solutions that support employees affected by the changes and enhance their employment prospects. An important key here is training and education.”

Continental’s key growth areas include functional solutions for assisted, automated, connected and zero-emission driving; integrated software-based system solutions such as services for mobility customers; as well as the tire, industrial and end-customer businesses. Continental is also gearing its Vitesco Technologies business area to achieve profitable growth with electrified drive solutions. Continental will provide details about the company’s strategy and profitable growth opportunities at its capital market days in December 2020.

To view the entire announcement,click HERE.

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