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      Continental Fahnen
      Press Release
      July 14, 2020

      Supervisory Board Approves Next Stage of the Transformation 2019–2029 Structural Program

      • Continental proceeds with Transformation 2019–2029 structural program according to plan
      • Closure of the location in Rubí, Spain, by 2021 and in Nogales, Mexico, by 2024

      Hanover, July 14, 2020. At its meeting today, the Supervisory Board of Continental AG approved the next steps of the Transformation 2019–2029 structural program at the locations in Rubí, Spain, and Nogales, Mexico. In doing so, the technology company is pushing forward with the implementation of its structural program it announced in September 2019, according to plan. This program aims to strengthen the company’s long-term global competitiveness to ensure its viability in the future.

      In its first resolution, the Supervisory Board approved the decision of the Executive Board to close the location in Rubí, Spain, by the end of 2021. An extensive search for potential investors over a period of months has yielded no results to date. As a consequence, the production of display and control technologies at the location is to be gradually phased out or transferred to other European locations by 2021. A pre-agreement has been drawn up together with the employee representatives and labor unions for the approximately 740 people employed at this location. The resolution is subject to the formal conclusion of a consultation phase, which is required in Spain in the event of restructuring. This phase involves the representatives of Continental, employee representatives and the local authorities.

      Furthermore, the Supervisory Board approved the closure of the Nogales location in Mexico. The production of vehicle communication and connectivity technology and drive system components at the location will be gradually phased out probably by mid-2024, with some activities transferred to other locations in the region. The Nogales location currently has about 2,000 employees. The decision was made in view of growing cost pressure, which makes it necessary to concentrate regional production in other locations to enhance competitiveness.

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