The transition to electromobility poses major challenges for the bosses of Germany's largest automotive suppliers. The market is also weakening. Thousands of jobs are on the line.
BERLIN (Reuters) -German auto parts supplier Continental is considering the sale of the car division currently bundled within ContiTech, manager magazin reported on Monday, citing company sources. The possible sale would be part of a wider reorganisation of the company being planned by Supervisory Board Chairman Wolfgang Reitzle and the executive board around CEO Nikolai Setzer, the publication added, citing the sources. Continental has taken a series of steps in recent years to restructure and boost profitability as its market capitalisation tumbled to 13 billion euros ($14.17 billion) from 50 billion in 2018.
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The possible sale would be part of a wider reorganization of the company being planned by Chairman Wolfgang Reitzle and CEO Nikolai Setzer, the report said.
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Continental: Massive cutbacks with the help of the trade unions
Protest against the closure of the Continental plant in Karben, Hesse, 15 April 2021 (Photo WSWS)
What the IG Metall and IG BCE unions, as well as the media, are praising as a “solid negotiation result” and a “great success” is the sealing of a long-planned attack. To save at least €1 billion a year, 30,000 jobs will be eliminated throughout the company and in Germany alone 13,000 jobs will be cut.
Several plants are to be closed and the closures will only be delayed for a short time. The closure of the tyre manufacturing plant in Aachen, for example, has been postponed from the end of 2021 to the end of 2022. Last September, there were still 1,800 employees in Aachen and of these, hundreds are now already being laid off via severance agreements and non-renewal of temporary contracts. By the end of the year, only 500 workers will remain to wind up operations at the plant.