The Contitech division of automotive giant Continental has announced the closure of four factories in Germany, resulting in significant job losses.
This move is part of a broader restructuring effort amid declining demand and growing challenges in the global automotive sector.
Rising costs, increased competition from China, and slow progress in the shift to electric vehicles are placing pressure on European manufacturers.
According to Autokult.pl, the affected factories are located in Bad Blankenburg, Stolzenau, Moers, and Frohburg (which includes a combined plant with Gethain).
Over 500 Jobs Lost, More Layoffs Expected
The closures will result in the loss of 580 jobs, marking a tough start to the year for workers in Germany’s automotive sector.
Continental has indicated that this is only the beginning of its restructuring efforts.
The company is considering further layoffs across its European operations, with up to 7,000 positions potentially at risk. Decisions regarding additional workforce reductions are expected to be made throughout 2025.
Industry-Wide Challenges
Continental's decision reflects deeper struggles within the automotive industry.
Manufacturers are facing rising material and energy costs while contending with increased competition from Chinese automakers.
Additionally, the industry's transition to electric vehicles has been slower than anticipated, further complicating efforts to maintain profitability.
Analysts note that European automakers must accelerate their adaptation to market changes if they are to remain competitive.
This includes investing in both electric vehicle production and more efficient manufacturing processes to withstand ongoing economic pressures.
The situation highlights the growing uncertainty for workers and businesses alike in one of Europe’s most important industries.
