Continental Counteracts the Global Recession

Continental is one of the first suppliers in the automotive industry that counteracts the financial crisis, with the company's officials today confirming that the Blythewood, S.C. Plant is due to be closed by the end of 2010. No less than 440 employees will be idled as a result of the factory closure, Continental said, with all operations to be moved to the Newport News, Va. production facility.

"We sincerely regret the impact that this decision will have on our employees and their families in Blythewood and appreciate their years of service," Kregg Wiggins, senior vice president of powertrain, was quoted as saying by Autonews.

Continental explained that such a decision is understandable because the Newport News plant has the capacity to manufacture the whole production line with reduced costs. Moreover, the supplier says an expansion plan will generate no less than 300 jobs by the end of 2013.

"In the second half of 2008, we already hit the brakes hard, making noticeable and painful cuts in all areas for 2009 in order to be amongst the winners when the markets recover,"Continental Executive Board chairman Dr. Karl-Thomas Neumann concluded.

A recently conducted research unveiled that the supplier market will be seriously hit in the first months of 2009, especially if large automakers, such as General Motors, Chrysler or Ford, file for bankruptcy. However, it appears that some of these suppliers are already prepared for difficult period said to begin in early 2009, with large suppliers preparing several cost-cutting measures to counteract the recession.

According to figures provided by Continental, the company currently employs 146,500 workers at approximately 200 locations in 36 countries.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram
About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories