Continental, the german vehicle parts manufacturer, deepened its cost-cutting programme and warned that an additional 10,000 jobs had been at risk, as coronavirus crisis hammered the global automobile industry.
The hanover-based business, whoever clients are the worlds largest carmakers, revealed just last year that 20,000 positions would-be suffering from its restructuring program, since it desired to recognize savings to finance an expensive technical change to electric cars.
On tuesday, the team practically doubled how many roles at risk in germany, from 7,000 to 13,000, and cautioned your method will probably lead to the moving or closure of facilities and functions at locations where prices are persistently too high.
Continental, which employs a lot more than 230,000 men and women worldwide, and practically 60,000 in germany, has axed 3,000 roles within its 10-year program, which it claims will save the company 1bn annually from 2023.
The complete automotive industry happens to be faced with enormous difficulties, said elmar degenhart, leader.
It will need lots from united states for a while and drive us to the restrictions in the following years, he added. after approximately ten years of quick, lucrative development and workforce expansion in line with the development type of the automotive business during those times, our company is today gearing our businesses to a new variety of growth with future technologies.
In july, the organization said it didn't anticipate global automobile sales recuperating to 2017s record in excess of 95m cars until at the least 2025.
But on tuesday workers representatives in germany accused the business of exaggerating the results regarding the present downturn to justify work cuts.
Under the guise associated with corona crisis, everything that no longer fulfills the profitability needs is apparently now become swept away, said francesco grioli associated with ig bce union, that is additionally an associate of continentals supervisory board.
Mr grioli included that ig bce ended up being available to innovative solutions such as a temporary reduction in working hours or retraining systems.
Continental stated opportunities in its pc software divisions plus in electric car technology will induce brand-new tasks, but declined to predict what number of associated with 30,000 staff whoever functions are currently vulnerable can get a hold of further work within business.
Earlier on this current year, continental emerged under fire for continuing to cover a dividend of 3 a share, totalling 600m, despite having put thousands of employees on furlough.