Continental announces cost reduction measures for its automotive business
Continental has announced measures to reduce the costs of its automotive business by 400 million euros annually. The exact number of globally affected jobs is not decided yet but is expected to be in the mid four-digit range.
“Continental is planning to implement all measures as socially responsible as possible. The Automotive sector is also currently examining additional measures to increase efficiency in the R&D area. A comprehensive strategy update for the sector will be provided at Continental’s Capital Markets Day on December 4, 2023. To streamline the business structure of Automotive, the business area Smart Mobility will be dissolved. The sector will be consolidated into five business areas instead of the previous six. The business areas will be as follows: Architecture and Networking, Autonomous Mobility, Safety and Motion, Software and Central Technologies and User Experience,” a release reads.
“Our goal is to create a sustainably profitable sector that can invest in its future from its own resources. With the adjustments to our structure, we bring technological solutions to those business areas where we see synergies. This will allow us to respond even better to market requirements,” explains Philipp von Hirschheydt, Executive Board Member at Continental and Head of Automotive.
“These initial measures are important for improving the competitiveness of the Automotive sector. We will now tackle them step by step and continue to implement them. Simplifying structures and reducing functions is essential for our successful future. To significantly improve efficiency and effectiveness, we are looking at all functions and processes without reservations, from sales to research and from development to production. We are also entering discussions with the social partners to identify suitable measures.”
As part of the transition phase in 2024, parts of the previous Smart Mobility business area will be reallocated and managed in other Automotive business areas based on natural overlaps. The new allocation will focus on three businesses: commercial vehicle electronics and services for the management of commercial vehicle fleets, actuator solutions for passenger cars, for example for door or sunroof controls, and the automotive aftermarket business.