Conti: "Don't think that global car markets will recover quickly"

German concern Continental AG reports a "slight recovery" in its third quarter 2020 results, but notes that the global downturn in the auto market is not over yet.

In its quarterly report on November 11, Continental reported a 0.7% decline in sales to €10.3 billion in a three-month period. Adjusted profit for the quarter was up 36% to €832 million.

According to Conti, market development in the third quarter exceeded expectations, especially in China and North America, where vehicle sales grew 10.7% and 0.5%, respectively. “From an operational point of view, we performed very well in the third quarter,” said retiring head of Continental AG, Dr. Elmar Degenhart, adding that the current situation should not “be misleading into thinking that global automotive markets will recover quickly. "

According to Elmar Degenhart, the automotive industry is now "in a process of fundamental technological transformation", which, against the backdrop of an increase in the number of cases of coronavirus, leads to "an unpredictable market situation."

According to the CEO of Conti, the overall critical situation confirmed the need for "decisive and flexible action" to maintain the company's competitiveness and viability. This, according to Degenhart, is the goal of Continental's new restructuring and reorganization program, which is estimated at around €1 billion.

Continental unveiled its business optimization restructuring program for 2019-29 last September and doubled its targets this September. The program, which will affect the company's nearly 30,000 jobs worldwide, is expected to generate annual savings for Conti of over €1 billion starting in 2023.