The situation at Continental is precarious. Business should do a little better now after the fall of Corona in the spring, but at the same time, conversion and job fears are weighing on the supplier pool. A superior person should decide soon.
Hannover (dpa) – Continental reports today on the details of the business development in the last third quarter. The car supplier had already provided preliminary information in mid-October.
As a result, after the extremely difficult second quarter, there were also losses in the third quarter. After the fall of Corona, daily business was slightly better from July to the end of September. But overall, it will have to show a deficit in earnings before interest and taxes, as well as the bottom line, Hannover-based Dax group said. One reason for this is high depreciation and renovation costs, which together total around € 1.3 billion. According to the latest information, quarterly sales fell year-on-year by 800 million to a good 10.3 billion euros.
The situation in the company continues to be precarious due to the restructuring and cutting of thousands of jobs, and the continuation of the “Transformation 2019-2029” strategy is highly controversial between the workforce and the management. The IG BCE union and Conti’s management are now holding talks to keep as many jobs as possible.
According to the union, the group should agree to strengthen most of the remaining pneumatic and mechanical engineering business in Germany “with additional tasks and responsibilities” and guarantee “investments in modernization”. In return, the workers’ representatives will pave the way for Conti to use flexible instruments “such as working hours and the salary corridor.”
There is no final result so far, but it should still be in 2020. Conti’s boss, Elmar Degenhart, had announced that he would step down from the presidency at the end of November. He gave health reasons for this. The succession should clear up soon.
IG-BCE head Michael Vassiliadis spoke in favor of important supervisory board decisions, in which the equity side could override the employee side, be accompanied by an arbitrator in the event of a point dead. In this way, it can be guaranteed that resolutions “like Conti’s are not simply pushed by the chairman of the supervisory board without looking for alternatives together,” he told the “Handelsblatt”. Vassiliadis presented a concept for this. “The current legislation comes from a time when old white men still believed that they could run entire corporations with a bang on the table,” he said in a statement. “It is no longer up to the challenges of transformation, and capital increasingly uses it as an instrument of power.”