Conti to close automotive components plant in Germany

Hanover, Germany – Continental AG is phasing out activities at its automotive parts manufacturing plant in Gifhorn, northern Germany, in response to a continuing market slowdown.

Operational since 1951, the plant was acquired by Continental in 1998 and manufactures mostly electronic automotive components for braking, stability and chassis systems.

The facility also includes a rubber brake hose assembly line, Continental has confirmed to ERJ. 

“Initial measures” for the closure of the plant by 2027 will take place with immediate effect, while a final decision to ‘exist the business’ will be made in December, Continental said 7 July.

As part of the move, the German group will relocate the assembly of “the latest generation of” air supply systems to an unnamed site in 2024.

The replacement parts business – primarily for air springs and compressors – will be relocated from 2024 onward.

Continental is also planning to outsource the production of valve blocks and piston crowns for brake systems to suppliers by the end of 2027.

The move will affect 450 of the 900 jobs currently based in Gifhorn, including temporary workers.

Continental said the decision was made against a backdrop of “the sharp rise in cost pressure within the automotive industry [and] declining automotive markets.”

Furthermore, the group noted that the location’s cost-structure was “uncompetitive” compared with international peers.

Continental said its executive board would continue to develop job opportunities for employees on the internal and external job markets.

“We take the fears and concerns of the employees affected very seriously and will fulfil our responsibility as an employer,” said Dr Ariane Reinhart, HR and sustainability executive.

Therefore, she added, Continental will aim to move as many employees as possible “from work to work”: transitioning them to a new job within Continental or externally.