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Continental Airlines warns of livelihood prices in the transition of electric vehicles

Continental Airlines, one of the world’s largest car suppliers, warns that the transition to electric vehicles is progressing rapidly, at the expense of people’s lives.

Alianne Reinhardt, head of human resources at the German group, told the Financial Times that environmental regulations are needed, but “cannot be supplemented in terms of employment” very early.

Hannover-based parts makers are struggling to adapt to technology shifts in the auto industry and are pushing ahead with plans to shut down their entire plant after a painful restructuring, all over the world, including 13,000 in Germany. It is endangering the employment of 30,000 people.

“Electric vehicles have a lower employment density than traditional vehicles,” said Reinhardt, who oversees the company’s 230,000 staff.

European carmakers have been forced to accelerate their transition to electricity after the EU introduced strict fleet-wide emission targets this year.

Brussels is considering tightening its 2030 CO2 reduction target from 40% to at least 55%. This has been criticized by the German car lobby VDA.

Despite the challenges of moving to battery-powered vehicles and the devastating effects of the pandemic, Continental expects revenues of over € 37 billion and an adjusted margin of approximately 3% in 2020.

Earlier this year, despite the temporary dismissal of thousands of workers, the group was accused of continuing to pay a dividend of € 3 per share, for a total of € 600 million.

The groups listed on Dax are an integral part of the global automotive supply chain. The product is included in four of the five cars in the world.

Elmar Degenhart, the company’s retired CEO, argues that the global automotive industry will not recover to its peak in 2017 for at least another four years and that significant cost savings will be needed to remain competitive. I will.

Reinhardt said Continental’s restructuring program would not be revised “unless the situation worsened,” but warned that the economy would remain very “unstable.”

On Wednesday, German workers’ representatives accused the company’s management of not being interested in alternatives to reducing jobs and focusing solely on maintaining an 8% margin.

Separately last week, Ms. Reinhardt announced Continental’s plans. Continental’s product emissions reach 125 million tonnes annually and are expected to be 100% climate-neutral throughout the value chain by 2050.

The company will also offer net zero carbon footprint components for emissions vehicles from 2022, enabling automakers to offer more environmentally friendly final products.

The group did not confirm whether a third party would monitor the progress of emission reductions, but said the goal would be included in the independently audited annual and sustainability reports.

Continental Airlines warns of livelihood prices in the transition of electric vehicles

Source link Continental Airlines warns of livelihood prices in the transition of electric vehicles

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