Continental Tire Closing What It Can't Sell

December 11, 2001

Sacramento - Unable to sell portions of its business that it no longer considers core or contributory to profits, German auto supplier Continental has given notice that it will shutdown two major business units within the next year.

Last week the company announced that its Semperit tire unit in Traiskirchen, Austria, will be shuttered by next July. Semperit once enjoyed one of the best reputations in the world for its line of winter tires. The shutdown will place 950 people out of work.

In a newspaper interview with Die Welt over the weekend, Continental CEO Manfred Wennemer said the job cuts and plant shutdowns won't end there and promised the closing of at least one other facility, although he would not be specific as to which one.

Continental is forecast to post a loss of $151 million for its 2001 fiscal year.