CTTAY Continental AG (PK)

   By Mauro Orru 
 

Continental AG said Tuesday that it would expand its structural program launched in 2019 to save more than 1 billion euros ($1.19 billion) from 2023 onwards, citing persistently low global vehicle production and the economic crisis due to the coronavirus pandemic.

The German car-parts supplier said the plan, which was originally expected to affect up to 20,000 jobs, would now likely affect more than 30,000 jobs directly worldwide, with about 13,000 of these in Germany.

Continental said some jobs would be modified, relocated, or made redundant by 2025 as Continental doesn't expect vehicle production to return to the 2017 levels before then.

"The entire automotive industry is currently faced with enormous challenges. It has not experienced a larger, more severe crisis in the past 70 years. This crisis is hitting suppliers particularly hard," said Chief Executive Elmar Degenhart.

The company said the strategy includes the bundling of production, research and development tasks at the most competitive locations worldwide, along with portfolio adjustments, adding this could bring about the relocation or closure of facilities and operations where costs are too high.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

September 01, 2020 09:07 ET (13:07 GMT)

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