Continental, a leading automotive technology company, is taking significant steps to enhance the competitiveness of its Automotive sector. They are set to implement measures that will simplify and streamline their business and administrative structures, aiming to achieve annual cost savings of 400 million euros by 2025. As part of this transformation, Continental is consolidating its business areas, reallocating certain segments, and planning further efficiency improvements in R&D.
Why It Matters
This move is crucial for Continental’s long-term sustainability and ability to invest in future innovations. By optimizing its structure and focusing on synergistic business areas, Continental aims to respond more effectively to market demands and strengthen its position in the automotive industry. The cost savings will not only benefit the company but also potentially lead to improvements in product offerings and services.
- Continental plans to save 400 million euros annually in administrative costs starting from 2025.
- The company is working on a comprehensive strategy update to increase efficiency in the R&D area.
- Continental is restructuring its Automotive sector from six to five business areas.
- The dissolved business area Smart Mobility will be reallocated into three key businesses: commercial vehicle electronics, actuator solutions for passenger cars, and the automotive aftermarket.
Continental’s efforts to streamline and optimize its Automotive sector reflect its commitment to remaining competitive in the ever-evolving automotive industry. These changes aim to not only reduce costs but also enhance efficiency and responsiveness to market needs. A comprehensive strategy update is expected at Continental’s Capital Markets Day on December 4, 2023, providing more insights into the company’s future direction.