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Continental to reduce 10% of North American workforce

ABR Staff Writer Published 20 January 2009

As part of the restructuring of its powertrain components division

Germany-based Continental Automotive Systems is planning to reduce 10% of its North American workforce over the next few months as part of the restructuring of its powertrain components division following its merger with Siemens VDO in 2008, according to Automotive News.

Continental employs around 16,000 workers in North America. The 10% cut in the workforce could translate to the reduction of around 1,600 positions.

Company spokeswoman Kathryn Blackwell was quoted by the news source as saying that some of the job cuts are a reaction to the slump in the auto industry and that the company will be reducing jobs that have been budgeted in 2009.

The company has also dropped plans to sell its fuel supply components business which manufactures pump modules and other machinery that finds use in fuel tanks, as workers' unions have expressed their willingness to be flexible in negotiations and also due to the difficulty for prospective buyers to secure financing in a tight credit market.

The Automotive Systems division of Continental covers the full range of systems and specialises in the development of innovative technologies for vehicle safety applications, comfort and powertrain as well as in the networking of active and passive driving safety systems.