CTNA to Cease Tyre Production in May
Continental Tire North America will stop tyre production at its Charlotte plant in July, earlier than its previously announced date of September, because of “worsening business conditions,” local news sources have reported
Under this plan, the company will lay off more than 700 workers between this Friday and July. Previously, Continental had said it would cut 172 workers Friday, 50 in June and 478 in September. The company plans to shift production to its non-union plant in Mount Vernon, Illinois, and to its factories in Mexico and Brazil.
The announcement appears to fly in the face of earlier reports that suggested Continental AG had no intentions of closing its Charlotte passenger and light truck tyre plant.
Manfred Wennemer, Conti’s CEO is reported to have told German media last week that it was “absolute nonsense” that the company would close the plant. However, observers believe this comment was made in reference to the complete closure of the site rather than the tyre manufacturing portion of it. Currently the company says it will retain about 200 employees in Charlotte, where it will still have a warehouse and rubber-mixing operations.