According to foreign media reports, Continental AG said on July 7 that it planned to phase out the business activities of its Gifhorn factory in Germany by the end of 2027.

　　Continental AG said in a statement that this decision was "made against the background of the sharp rise of cost pressure in the automotive industry, the decline of the automotive market, and the high cost structure (measured by international standards) and lack of competitiveness of the factory".

　　Image source: Continental AG

　　It is reported that Continental AG will immediately take some preliminary measures, including transferring the assembly work of the new generation air supply system in 2024, and transferring the spare parts production business (mainly air springs and compressors). Continental AG also plans to outsource the production of valve blocks and piston crowns of the brake system to suppliers by the end of 2027. These measures will affect 450 employees (including temporary workers) out of 900 people in Gifhorn factory.

　　Ariane Reinhart, head of human resources at Continental AG, said that the Group might transfer the affected employees to other departments of the company or help them find jobs in the external labor market.

　　Since its acquisition by Continental AG in 1998, the Gifhorn factory has been focusing on manufacturing brake, stability and chassis system components. Since 2005, Continental AG has taken many measures with employee representatives to improve the competitiveness of the factory. The reason why the Executive Committee made this decision was that Continental AG's profitability in local business could not be guaranteed against the background of sharply rising cost pressure and declining automobile market.

　　A local official of the IG Metall said the decision was "unpleasant", but he said that Continental AG had cleared the way for new investment in the Gifhorn factory, which might help workers transition to new jobs.

　　This article is reprinted from Gaishi Automotive Information Network