Continental Sees Car Price Rises On Raw Material Costs
Until now, the Hannover-based company was able to pass on higher raw material costs to suppliers and car manufacturers, Continental technology board member Karl-Thomas Neumann told Dow Jones Newswires Friday. But they can't compensate for the rising costs any longer, he said.
"We're expecting end-customer prices to rise," he added.
The restructuring of the company's ailing drive train unit Powertrain - which includes the VDO business recently acquired from Siemens AG (SI) - is on track, said Neumann, who is head of the unit.
Neumann earlier revealed plans for the company to reduce the number of cost- intensive plants in Western Europe and the U.S. Following the decision to close down the firm's plant in Wetzlar, other similar decisions are set to follow, he added Friday. Some plants are on the rocks, Neumann said, without elaborating.
The company, however, plans to set up new plants in Eastern Europe.