Continental automotive electronics in Karben by the end of 2024
The company says it will initiate structural measures at its German locations Aachen, Karben and Regensburg as well as the termination of the joint venture with Osram.
More precisely this will mean the closure of the tire plant in Aachen at the end of 2021 and of the location for automotive electronics in Karben by the end of 2024. This also includes structural adjustments for future prospects in Regensburg, and the termination of the joint venture with Osram “The current crisis is the largest, most severe one we have seen in the past 70 years. So the aim of our plan is now to prepare for our sustainable success and to ensure the future viability of our organization,” says Continental CEO, Dr. Elmar Degenhart in a press release. The CEO continues to say that: “As important as today’s resolutions are for our future, the consequences can be just as painful for the employees affected. We are deeply moved and saddened by their fears and concerns. We are doing everything in our power to limit the potentially harsh effects of our plans to what is only necessary.” The decision to discontinue the production of automotive electronics in Karben by the end of 2023 and close the plant by the end of 2024, will affect about 900 employees. The company says that the reasons behind closing the plant are the impact of digitalization of vehicle technology and the global sales crisis for passenger cars and light commercial vehicles together with the expected slow recovery of the market. The discontinuing of production at the tire plant in Aachen – scheduled for the end of 2021 – will affect about 1’800 of the 2’000 jobs in production, development and administration at the location. Continental will also initiate a transformation of the Regensburg location, which the company says will strengthening its commitment to its future. Development, innovation and production units are to be located in Regensburg in the future, as has been the case to date. It is also to serve as the base for the management team. For its future prospects, it is necessary to realign the location, which will affect about 2,100 jobs (total location workforce is about 7,600) in production, development and administration. These jobs are to be either modified, relocated or made redundant by 2024. Continental says that with these measures, the company is responding to the change in requirements with the increase in electrification and digitalization, as well as to the historic crisis in the automotive industry. The final structural change is the termination of the company’s joint venture with Osram. “If we now head into our growth fields at full speed, we will have the opportunity to again significantly expand our workforce in our future fields in the next ten years, like we are currently having to adjust it due to the structural transformation and weak economic environment. We are going to make the most of this opportunity,” says CEO Degenhart. The group’s key growth areas include functional solutions for assisted, automated, connected and zero-emission driving; integrated software-based system solutions such as services for mobility customers; as well as the tire, industrial and end-customer businesses. Continental is also gearing its Vitesco Technologies business area to achieve profitable growth with electrified drive solutions.