The automotive industry is suffering severely from the corona pandemic. Tire maker Continental is feeling it too – and losing millions. The outlook remains poor.
Auto maker and tire maker Continental has also slipped into the red because of the Corona crisis. The net loss between April and the end of June was 741.1 million euros, as the Dax group announced in Hanover on Wednesday.
A year ago, Conti made a profit of 484.8 million euros. “In the valley of the auto industry’s worst economic crisis since WWII, we have outperformed our markets,” said CEO Elmar Degenhart, according to the announcement.
Continental wants to keep saving
Conti wishes to continue the savings given the already known drop in sales of 41.2% to 6.62 billion euros. “Our tough step on the cost brake is having a noticeable and rapid effect,” Degenhart said. In the second quarter, Conti reduced its fixed costs by more than 400 million euros compared to the same period of the previous year.
However, Conti did not give a specific annual outlook and global vehicle production in the third quarter is expected to be 10-20% lower than in the previous year. According to Conti, it was 45% in the second quarter.