, The strikes are getting closer: Weak demand and reduced production due to the pandemic and the consequences of difficult-to-make Conti the life. The saving rate could now be exacerbated once.
Hanover (dpa) - The automotive supplier Continental is not around as a result of the massive effects of the Corona-crisis expected to redundancies.
In the case of the Dax-listed company is already a reduction because of the General upheaval in the Auto and engineering industry, which should if possible be done in a socially responsible manner.
continue to be the goal was to minimize necessary layoffs, said chief Executive Elmar Degenhart in an internal video message.
But the situation is becoming increasingly more critical: "We can currently give no Jobgarantien. The probability that we have to talk about redundancies, is very, very high," said the Manager, according to "business week" (Wednesday).
in other words, a possible worsening of the savings rate by several hundred million euros. "This is very painful. But we have no other choice," said Degenhart.
The company from Hannover - according to Bosch, the world's second largest supplier to the auto industry - was hoping for a strong boost from the economic stimulus program of the Federal government. Also because modern internal combustion engines were excluded from the promotion, the Conti-chief disappointed: "We can expect from the political side of no help." This applies at least for the acute, short-term crisis management.
Continental was advised because of the stuttering car market even before the Corona onset under pressure and had announced a large-scale reconstruction program.
Up to 20,000 Posts are to be affected by 2029, of which, 500 million euros of gross costs should be reduced according to previous plans. It would be considered "other measures", it said.
In the course of the pandemic, the group is also reflected in the investment reserved. For the current fiscal year at least one-fifth should be less spent. In the first quarter, the profit the bottom line fell by almost half to 292.3 million euros, for the second quarter in the red are expected.
The whole car industry is struggling because of the pandemic, with a collapse in sales, and Overcapacity, suppliers, and tire manufacturers get to feel the. The world had to reduce in Continental to about 60 percent of the nearly 240.000 employees in their working hours. In the important market of China, the business is picking up again slightly.Updated Date: 13 June 2020, 04:36