Known across the world, the German car part maker Continental is an oft-talked about name for companies like Fox shocks, companies in the auto industry. Recently, they’ve gotten on the news for an announcement that got employees worried.
The auto parts manufacturer has confirmed that it would be cutting 5,500 jobs by 2028 as part of their plans to get annual savings of €500 million, with most of the jobs affected located in their home country of Germany.
This announcement is reported to be due to the slow international car market, combined with the lower demand for combustion engines.
Continental CEO Elmar Degenhart issued a statement saying that the job cull that’ll be affecting Germany, Italy and the US will support the company’s necessary technological shift, and would, in turn, strengthen the company’s competitiveness and future operations.
Continental will be shutting down its site in Roding, Bavaria, which manufactures hydraulic components for petroleum and diesel engines, by 2024. This, consequently, would result in the loss of about 520 jobs.
Following that, Continental will also be stopping diesel injection components in its Limbach-Oberfrohna, Saxony site, which would remove an additional 750 jobs. On top of that, 2,200 jobs are also at risk in Babenhausen in the central state of Hesse.
As for Continental’s Pisa, Italy site, 750 jobs are at risk due to the stop of the production of petrol engine parts by 2028.
Elsewhere, Continental said that Newport, US, will be losing 720 as the site there will be stopping the production of hydraulic components for gas engines by the time 2024 rolls in.
Continental’s global workforce of 240,000 people has had people in the auto industry, including companies like Fox shocks, worried about their workers. The company have stated, however, that not all of the jobs will be lost, with employees will be given a chance to retrain for other positions, while some positions will be moved to other Continental sites.
Germany’s car industry is huge, accounting for about 5% of the country’s national output, with 800,000 jobs. It’s been hit hard by trade wars, as well as the prospect of a no-deal Brexit. On top of that, electrification and automated driving is demanding automotive companies to make huge investments in new technology.