Day one of the “new Continental” was Dec. 5, and Continental executive board chairman Manfred Wennemer travelled to Regensburg in Germany’s south, where the unit has its headquarters, to meet with the company’s newest colleagues.
“We warmly welcome the employees from the former Siemens VDO Automotive AG. By consolidating forces, we will forge our Continental into one of the world’s foremost automotive suppliers,” said Wennemer in his address to the unit’s employees, just one day after the official conclusion of the 11.4 billion euro purchase. “Following exhaustive preparation we can now tackle the integration with a flying start.
“It will take us another two to three months, however, to make a series of key decisions,” he added. “This gives us enough time to thoroughly examine data that antitrust laws have so far barred us access to. This applies in particular to information concerning sales, earnings and the number of employees by product group and plant. In the final analysis, the plans required for the operative business and especially for production will form the basis for the generation of synergy effects, paving the way for the emergence of a better and more efficient corporation from two top-notch companies as well.”
On the basis of planning to date, Continental anticipates net synergy effects in the order of at least 170 million euros as of 2010. “From what we know at the moment, we would be disappointed if it remained at this conservatively estimated sum. The amount will presumably be higher. We will be able to provide more details in the next ten weeks,” stated Wennemer.
The number of divisions under the Continental AG umbrella has increased from four to six; three of the existing divisions, Passenger and Light Truck Tires, Commercial Vehicle Tires and ContiTech, remain unchanged by this reorganisation and remain the respective responsibilities of Hans-Joachim Nikolin, Manfred Wennemer and Gerhard Lerch. The company’s old Automotive division and the Siemens VDO Automotive unit together form three new divisions. Chassis & Safety, Powertrain and Interior.
Continental now counts itself amongst the top five automotive suppliers worldwide and, based on 2006 figures, generates annual global sales in excess of 25 billion euros. The corporation currently employs approximately 150,000 people at nearly 200 locations in 36 countries. (Tyres & Accessories/Staffordshire, U.K.)
