Saturday, February 8, 2025

Car giant closes 5 factories – 600 employees to be laid off

Crisis-stricken Continental Automotive closes factories and lays off 600 employees in Germany.

Continental Automotive has announced the closure of five factories in Germany, which will result in the layoff of almost 600 employees.

The factories are located in Stolzenau, Bad Blankenburg, Moers, Frohburg and Geithain. In addition, production in Hanover will be moved to the Czech Republic in 2026, and there will be cuts at the rubber factory in Hamburg.

The company justifies the decision with a rapid decline in demand in the auto parts industry.

"It is a painful step that is necessary to take in order to become profitable in the future," Continental's Phillip Nelles told German radio station NDR .

The decision has been criticized by the Swedish Chemicals Union (IBCE), which believes the company is acting irrationally and harming employees. "The decision is helpless, destructive and demotivating," says IGBCE group manager Michael Linnartz.

The closure of the factories is a blow to the affected employees and regions. Lower Saxony's Minister of Economics Olaf Lies (S) expresses concern about the situation.

– The planned closure of the Stolzenau factory and the cutbacks in Hannover-Vahrenwald hit Lower Saxony at an already economically difficult time.

Continental's decision is part of a larger trend in the German auto industry, which is facing major challenges. Volkswagen is also closing two factories this year and auto parts maker ZF Friedrichshafen plans to reduce its workforce.

Parent company Continental has chosen to spin off its automotive parts division, Continental Automotive, as a separate company to meet the challenges facing the automotive spare parts industry.

Continental Automotive has promised to implement the cuts in a socially responsible manner. However, it is unclear how management will do this in practice and what options the affected employees will be offered to move forward.

The factories that are being closed or relocated are located here:
Stolzenau in Lower Saxony
Bad Blankenburg Thuringia
Moers North Rhine-Westphalia
Frohburg and Geithain both Saxony
Hannover Vahrenwald is to be moved to the Czech Republic in 2026.
Hamburg: Factory cuts and lays off employees


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