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Continental shares tumble on bleak 2025 autos outlook

^{Published on 2025-03-04 08:41:33 - Reuters}

German automotive parts supplier Continental expects a weak year for the market in 2025, and has yet to assess the potential impact of new U.S. tariffs on its North American operations, it said on Tuesday,

Continental AG, a German automotive supplier, experienced a significant drop in its share prices after issuing a bleak outlook for 2025. The company cited challenges in the automotive industry, including a slower-than-expected recovery in global car production, ongoing supply chain issues, and a shift towards electric vehicles which require different components than traditional combustion engines. This transition is putting pressure on profitability as the costs for research, development, and production adjustments rise. Additionally, Continental warned that the economic environment, marked by inflation and potential recessions in key markets, could further dampen demand for automotive parts. The company's shares fell by as much as 10% following the announcement, reflecting investor concerns over the firm's future earnings and its ability to adapt to the rapidly changing automotive landscape.

Read the Full Reuters Article at:
[ https://www.msn.com/en-ca/money/other/continental-shares-tumble-on-bleak-2025-autos-outlook/ar-AA1Ae0Ze ]

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