Continental’s Automotive Division Takes Bold Steps to Secure Future

Continental, the automotive supplier and tire manufacturer, is taking some major steps to turn its struggling automotive supplier division around. The company plans to cut thousands of jobs in an effort to reduce costs by 400 million euros annually starting from 2025. This move aims to streamline administrative processes and boost the efficiency of research and development spending. While the exact number of jobs affected is not yet confirmed, it is expected to be in the mid four-digit range, possibly around 5500 jobs. The division currently employs 102,574 people, while the entire Group has 203,593 employees.

The decision to implement these cost-cutting measures comes as Conti’s automotive supply business has been facing challenges, particularly in the areas of brakes, interior fittings, sensors, and electronics. The industry as a whole is also undergoing significant technological advancements, requiring substantial investments. Philipp von Hirschheydt, the CEO of the automotive supplier division, expressed the company’s aim to create a sustainably profitable division that can independently invest in its future.

In a statement, von Hirschheydt highlighted the importance of these measures in enhancing efficiency, effectiveness, and competitiveness. By closely bundling business areas and accelerating decision-making processes, Continental aims to strengthen its position in the market and ensure long-term success.

While these changes are aimed at securing the division’s profitability, they also reflect the broader challenges faced by the automotive industry. As companies navigate the evolving landscape of automotive technology and market demands, strategic decisions such as these become essential for sustainable growth and innovation.

The automotive industry is undoubtedly undergoing a period of transformation, and Continental’s cost-cutting program is a testament to the company’s commitment to adapting to these changes. While the impact of these measures on employees is significant, the company’s focus on long-term sustainability and competitiveness is a crucial step in securing its future in the industry.