FRANKFURT -- Continental will reduce its engine manufacturing activities as more stringent emissions rules threaten demand for combustion engine components, resulting in around 5,040 job losses by 2028.
The program aims to strengthen the company’s competitiveness in the long term and to ensure its viability in the future, Continental said in a news release on Wednesday.
The Germany supplier has suffered from a global downturn in demand for passenger cars and a shift away from gasoline and diesel toward battery-powered vehicles.
Continental said around 520 jobs will be lost when a site in Roding, Germany, which makes hydraulic components for gasoline and diesel engines, is closed down in 2024.
Another 850 jobs are under threat in Limbach-Oberfrohna, Germany, once manufacturing of diesel injection components ends in 2028, and a further 2,200 jobs in Babenhausen, Germany, are under threat.
Another 720 jobs will be lost in Newport News, United States, where hydraulic components for gasoline engines will cease in 2024.
In Pisa, Italy, 750 jobs are under threat because production of gasoline engine components will cease by 2028, Continental said.
Continental said it would also start talks with worker representatives at its site in Rubi, Spain where it makes analog display systems. Around 760 people work at Continental's site in Rubi.
Continental announced a decade-long restructuring plan that would lead to the closure of plants in Europe and the U.S. but the company did not provide details of job cuts at the time.
Continental which employs more than 240,000 staff globally.
The supplier ranks No. 4 on the Automotive News Europe list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $37.8 billion in 2018.
