Continental to close car plant soon

Published:

On: Sep 2020

According to the source, the well-known German car parts maker Continental on Tuesday stated that they are planning to close its tyre plant that is costing around 1,800 jobs in the current news to the annoyed auto industry. The main objective of the company is to halt its factory in the city of Aachen which is located in northwestern Germany by the end of 2021.

The spokesman of Continental said that the COVID-19 pandemic has enforced a major drop in the tyre sector that has been decades in the creation. However, as per the trade union IG BCE, which showcases the rubber division workers of the company, the factory was in huge downturn until the spring season of 2020.

The massive declines in the rubber business cannot be elaborated either by the revolution of the car industry or by the coronavirus pandemic. This is a matter of dropping for the sake of declining, said by the Francesco Grioli, the IG BCE representative, who is also the head of the supervisory board of Continental.

He said that this will meet the company’s resistance at all scales. The Hanover-located firm declared just 2 weeks ago that it would extend its reforming programs. Nearly, 30,000 jobs across the globe will be relocated, advanced or generated redundant, involving 13,000 in Germany, because Continental targets to save more than a $1.2 billion euros yearly from 2023.

The firm criticized steadily less global vehicle production and extending economic crisis as an outcome of the coronavirus epidemic. Previous month, the German car parts maker firm said that the net profit of the group decreased to 41 % to 485 million euros in the Q2. The associate German car parts maker Scaeffler currently said that it would drop 4,400 employments as it struggles to rebound from the downturn of weeks of shutdowns earlier in the earlier.