Frankfurt am Main, November 13, 2023. Continental has decided on further measures to strengthen the competitiveness of its Automotive division. To this end, the department is simplifying and streamlining business and administrative structures. With the planned measures in the administrative structures, Continental aims to reduce costs by 400 million euros annually. The full scope should be achieved from 2025. Cost relief should be achieved through a spectrum of measures across all parts and levels of the organization. It is therefore not yet clear exactly how many jobs will be affected. However, the number is likely to be in the mid four-digit range. Continental plans to make all measures as socially acceptable as possible. Automotive is also currently examining additional measures to increase efficiency in research and development. A comprehensive strategy update of the division will take place as part of Continental’s Capital Markets Day on December 4, 2023. In order to streamline the Automotive business structure, the Smart Mobility business area will be dissolved. In the future, the corporate division will be bundled into five instead of the current six business areas. The future business areas are: Architecture and Networking, Autonomous Mobility, Safety and Motion, Software and Central Technologies and User Experience.
“Our goal is to create a sustainably profitable division that can make investments in its future using its own resources. By bundling our structure, we bring technology solutions into the business areas where we see synergies. This means we can respond even better to market requirements,” explains Philipp von Hirschheydt, Continental board member and head of the Automotive division.
“These initial measures are important to strengthen the competitiveness of the automotive sector. We will now tackle them consistently step by step and continue to implement them. Simplifying structures and reducing functions is essential for our successful future. We therefore look at all functions and processes from sales to research and development to production with an open mind in order to significantly improve efficiency and effectiveness. We are also starting discussions with the social partners to identify suitable measures.”
Parts of the previous Smart Mobility business area will be reallocated and managed in other business areas within Automotive during a transition phase in 2024 based on natural intersections. The new assignment focuses on three business activities: commercial vehicle electronics and services for the management of commercial vehicle fleets, actuator solutions for passenger cars, such as door or sunroof controls, and the passenger car spare parts business.
The post first appeared on www.continental.com