BERLIN -- To save costs, Continental will not have an exhibition stand at the IAA in Frankfurt in September.
The German supplier is the second automotive company to withdraw from Europe's biggest auto show.
Earlier this month, Mitsubishi said it would not have a stand at the IAA because of "extraordinary business and financial challenges" in the current business climate.
Industry insiders estimate that an appearance at the IAA costs about 1 million euros.
Continental CEO Karl-Thomas Neumann said he could not justify the cost.
"We cannot tell our employees to tighten their belts to save money and then pay a six-figure sum for a single auto show," Neumann told Automobilwoche on the sidelines of an event here.
Mitsubishi says it will focus on just one auto show per region this year. In Europe, the carmaker will only appear at the Geneva show.
Auto companies are carefully considering whether they can afford to appear at car shows during the global economic crisis.
Nissan, Land Rover and Rolls-Royce pulled out of the Detroit show in January,
while other carmakers downsized their participation.