Given the slump in the worldwide car industry, the German automotive supplier ElringKlinger plans to save 50 million euros (55 million dollars) in material costs this year and invest significantly less than last year.
"We have underutilization in some plants or sections," chief executive Stefan Wolf said in comments published on Monday by the StuttgarterZeitung and StuttgarterNachrichten newspapers.
ElringKlinger had posted a loss of 8.6 million euros in the second quarter and already announced a savings plan.
Employees are currently depleting their well-filled working time accounts, Wolf told the newspapers. This will allow flexibility for a few more months, thereafter there will probably have to be short-time working.
The chief executive also wants to cut back on investments, which reached 160 million euros in 2018.
"In 2019, it will still be a high amount in the tens of millions," he said. The amount is expected to be reduced even further in 2020.
ElringKlinger currently employs around 10,400 people.
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