Continental Might Shut Plants in Its Restructuring

Source: Reuters

HAMBURG – Continental is examining whether to shut plants, including in Germany, as part of its restructuring, a spokesman for the company said after a newspaper reported that nine plants in its powertrain unit could be closed.

“It is beyond question that we are reviewing all divisions,” a spokesman for Continental, Germany’s largest listed automotive supplier, said without giving details on how many plants and jobs could be involved.

German daily Hannoversche Allgemeine, citing union sources, said Continental was planning to shut nine of the 32 production sites in its powertrain unit, which could result in the loss of 4,000 jobs.

Continental’s Rubber division is also being put on review, the spokesman told Reuters.

This month, Continental said it was seeking deeper cost cuts as it reported a 41 percent fall in second-quarter net profit reflecting lower auto demand in China and steep investments for electric and autonomous cars.

“We are responding to the declining market by ensuring rigorous cost discipline and enhancing our competitiveness,” CEO Elmar Degenhart said in the company’s earnings release.

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