Faced with competition, especially from China, German auto/tyre maker Continental says it is planning additional global measures within its ContiTech sector, which is involved in the manufacturing of belts/hoses utilised across various industries, to achieve a competitive cost level.
Early this year it said it will shut four plants and scale back operations at two more sites, affecting around 580 positions at ContiTech, but now adds that these measures are no longer sufficient, since ContiTech’s key markets continue to underperform and its cost structure remains too high compared with competition.
To improve its competitiveness sustainably, ContiTech aims to generate annual savings of EUR150 million, primarily within administrative structures, from 2028. The planned measures, including relocating activities, reducing headcount and adjusting processes, will be implemented across all parts and levels of the organisation starting in 2026.
The exact number of jobs to be cut in Germany and the approach to implementation will be determined in cooperation with social partners. Most of the expected changes will affect ContiTech operations based in Hanover, with plans to relocate some activities to countries with more competitive cost structures.
“Cost pressure is increasing due to a changing market environment, slower growth rates in key economies and industries, ongoing uncertainty from trade conflicts and intensifying competition – particularly from China,” explained Philip Nelles, member of the Continental Executive Board and head of the ContiTech group sector. “Adjusting our cost structure is necessary regardless of the planned sale of ContiTech and its future ownership. A competitive cost level is essential for our long-term viability. We are acting decisively to unlock our medium- and long-term potential, which we firmly believe in,” added Nelles.
The Industrial Solutions Americas business area already began implementing measures to strengthen competitiveness in the Americas region in October and November 2025.
The restructuring comes as Continental, the third-largest automotive supplier in Germany, faces pressures from a downturn in the automotive sector and the costly transition to electric mobility, with overall job losses projected to exceed 10,000 across the company.
It also has plans to divest its Contitech division since the tyre sector has been identified as the most profitable in the company.