HANOVER, Germany—Continental A.G. is expanding its global restructuring program in light of the "deepening economic crisis" caused by the coronavirus pandemic and sedated auto parts sales. The company's plans could affect thousands of jobs in North America and at least 30,000 jobs worldwide.
The auto parts manufacturing company said at least four North American facilities, numerous German plants and other international plants will be affected by the overhaul, which is expected to save about $1.17 billion per year by 2023. The company previously had eyed a restructuring that would affect 20,000 jobs globally and save the company more than $580 million per year.
The Supervisory Board of Continental A.G. approved the restructuring plan Sept. 30, adding a German tire plant in Aachen to the list of affected facilities and disclosing that it would terminate a joint venture with Osram Licht A.G. signed in 2018 for LED and laser-based lighting modules, sensor solutions and associated electronics.
"The current crisis is the largest, most severe one we have seen in the past 70 years," said Continental CEO Elmar Degenhart. "So the aim of our plan is now to prepare for our sustainable success and to ensure the future viability of our organization. As important as these resolutions are for our future, the consequences can be just as painful for the employees affected."