ContiTech to save €25m a year from realigned automotive parts ops – European Rubber Journal

August 22, 2022 by No Comments

‘Low three-digit million euro’ restructuring programme to deliver significant annual savings by 2026

Hanover, Germany – ContiTech AG is undergoing a multi-million-euro restructuring to align the business with the ongoing transformation within the automotive industry.

The restructuring will mainly focus on the company’s automotive fluid management products and will amount to “a low three-digit million-euro” figure, said Continental AG’s chief financial officer Katja Durrfeld in a 9 Aug conference call.

Once fully implemented, in steady state, annual gross savings will amount to €25 million per annum starting 2026, she added.

As part of the restructuring, ContiTech will adjust the setup of all German sites in the mobile fluid systems to align with the changing requirements of the automotive and commercial vehicle markets.

With the increase in battery electronic vehicles, for instance, ContiTech will focus on “promising solutions” for hose components and complex line systems for thermal management.

“We and the executive board of Continental will continue to analyse and take actions in order to make sure we have the optimal portfolio on board to secure our future performance,” Durrfel added.

Furthermore, the financial chief said that ContiTech will continue to set up and implement new efficiency programmes to control costs strictly.

“As already said, we are proactively managing sourcing and logistics challenges worldwide, securing the delivery chain in the automotive sector, given the semiconductor-related constraints is of assets.

“To improve our free cash flow, we are managing our inventory levels aiming towards lower levels whilst at the same time securing the supply of critical components,” she added.

* Comments in transcript sourced from Seeking Alpha.

Source: https://www.european-rubber-journal.com/article/2091937/contitech-launches-rejig-to-align-with-car-industry-transformation

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