8/26/2019

Conti Ponders Plant Closures

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Continental AG reportedly may close as many as nine of its 32 powertrain factories and shed 4,000 jobs as part of a major restructuring effort.

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Continental AG could close as many as nine of its 32 powertrain factories in Germany and elsewhere and shed 4,000 jobs as part of a restructuring effort, says the Hannoversche Allgemeine.

The company confirms it is reviewing all divisions, including its tire operations. But has declined to comment on the number of plants or jobs that may be hit.

Earlier this month Conti vowed “rigorous” cost-cutting after posting that its second-quarter net profit plunged 41% to €485 million ($541 million).

At the time, the company predicted no market improvement through at least the remainder of 2019. Conti said it is halting further development of its hydraulic components business, which includes fuel injectors and pumps for piston engine. Conti anticipates a slump in new orders in that sector as carmakers turn to electrified powertrains.