Investing in the future of our employees

The pension system is undergoing a fundamental transformation. Changes in the demographic structure are increasing pressure on state pension systems in Germany as well as in many other markets in which Continental operates. Company and private pension schemes have therefore become more important. Via internal communication Continental makes employee more aware of the need to secure their income in old age by investing in private old age provision schemes.

The focus of our international pension strategy is a shift from benefits-oriented to contribution-oriented pension commitments. This is intended to offer both employees and the Company a sustainable and readily understandable pension system. In the continued implementation of this strategy, employees in the USA and Great Britain who joined the corporation in the course of the acquisition of Motorola's automotive electronics' operations were integrated into a contribution-oriented support system in 2006. In such a system, increasing individual contributions made by employees are accompanied by increasing contributions made by the Company. At the beginning of 2007, the pension commitments for the Portuguese employees in the tire-divisions were also switched to a contribution-oriented scheme. Thanks to this switch it was possible not only to improve the competitiveness of this high wage location, but also to underscore a philosophy of co-responsibility for pension provision.