At a meeting on November 20, German auto parts supplier Continental Group approved the organizational adjustment plan for five production bases in Germany, the United States and Italy, a move that will affect a total of 5,040 jobs by 2028.
On November 21, German auto parts supplier Continental announced that the group approved the organizational adjustment plan for five production bases in Germany, the United States and Italy at a meeting on November 20. The plan It has been discussed by the Supervisory Board at its meeting on September 25, 2019. The move will affect approximately 5,040 jobs by 2028, and the group currently has more than 240,000 employees worldwide.
The following are the production bases affected by the resolution and the measures they will take:
1. Roding, Germany: Production and development of gasoline and diesel engine (high-pressure pump) hydraulic components will be stopped in 2024, so the production base will also be closed. About 520 jobs are currently affected.
2. Newport News, USA: The production base will be closed in 2024. The plant currently has about 720 employees and mainly produces hydraulic components for gasoline engines (injectors).
3. Limbach-Oberfrohna, Germany: The production base will stop the diesel engine (injector) hydraulic components business in 2028. About 850 jobs are currently affected.
4. Pisa, Italy: The production base will gradually stop the production of hydraulic components for gasoline engines (injectors) from 2023 to 2028. About 750 jobs are currently affected.
5. Babenhausen, Germany: The instrumentation and human-computer interaction business unit plans to gradually stop producing display and controller products by the end of 2025. In addition, some R & D projects will be transferred to other production bases by the end of 2021. More than 2,200 jobs are currently affected. The division will continue to manage development and administration at the Babenhausen production site.
Continental pointed out that the automotive industry is currently transforming to electric mobility, and stricter emissions regulations have accelerated this process. Under multiple pressures, the market demand for hydraulic components has fallen sharply. In view of this situation, the Group's Supervisory Committee has approved the decision of its executive board that it will not continue to develop the gasoline and diesel engine hydraulic components business in the next few years.
Looking at the above changes, the first four items are related to gasoline or diesel hydraulic components, and a total of about 2,840 jobs will be affected as a result. The fifth adjustment came from another resolution, which alone affected more than 2,200 jobs. Continental had previously made plans to gradually discontinue production of display and controller products by the end of 2025. In its view, the industry is accelerating the transition from analog to digital technology, and the competition environment is becoming increasingly severe and costs have risen sharply. Making adjustments is imperative.
Continental also revealed that the management and labor committees of the affected production bases are discussing the current situation and next steps. In addition, the management of the group also informed the supervisory board that it would discuss the future development prospects with the local labor committee of Rubí, Spain as soon as possible. The production base currently has 760 employees and is mainly responsible for the production of traditional displays and controllers.
In response to the job changes that will be involved in the transformation, the company said it would provide as much support as possible for affected employees. "We have been having a close and constructive dialogue with employee representatives. The key question at the moment is: how do we implement the necessary measures responsibly and visionally, because only then can we become the current restructuring More powerful, "Dr. Degenhart said.