The German tire and car parts manufacturer Contiental AG is now in such an acute crisis that it may be necessary to sell off an entire department.
If the managing director of Continental AG, Nikolai Setzer, does not turn the tide soon, there will be no future for the giant sub-supplier in the automotive industry.
That's the conclusion of a 67-page report that the research firm Bernstein has just published.
Handelsblatt writes that.
– We see nothing to suggest that Continental will play an important role in future growth areas such as automated traffic lights or high-performance computers in cars.
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– Costs have been increasing for years without progress in profit per employee, says the analysis.
It is also not long ago that Continental admitted to the Financial Times that the company probably cannot survive if the business continues to look as it does now.
The board of Continental AG is considering separating the Automotive part from the rest of the group. The group states this in a press release.
If the automotive part, where you e.g. develops software for control systems in cars and receives half of all sales, is separated, Continental will again 'only' produce tires and parts for the industry in general.
However, it may also happen that Continental AG gets rid of Nikolai Setzer, who has been with the company in various roles since 1997. Most recently as managing director from 1 December 2020.
Continental AG is not the only German company that has seen better days in the automotive industry. Similarly, German ZF, which makes a living by manufacturing gearboxes, has recently announced that it will have to save an eerily large amount of billions away in the coming years. Read more about it here .
Read more exciting news from and about the world of cars right here
