Continental AG and the Schaeffler Group have initiated a joint global purchasing project, which was contractually agreed on 27 March 2009. According to the two companies the project’s goal is to optimize the cost of materials and achieve an annual triple-digit million benefit through access to the steel markets and component suppliers as well as investments and non-manufacturing materials. The combined purchasing volume of Continental and Schaeffler totalled approximately 20 billion euros in 2008, with the amount expected to benefit calculated at 6.6 billion euros. The companies are hoping to achieve total savings of between 350 and 400 million euros for the period between 2009 and 2011 alone.

According to a company statement announcing the cooperation, both companies follow the principle of acting in the market as independent entities but “creating synergies through cooperative actions.” Purchasing is an ideal area for this cooperation because this is where the strengths of Continental and the Schaeffler Group complement one another. While Schaeffler’s annual purchasing volume of as much as 1 million tons of steel brings it direct access to steel producers, a high level of competence in this segment and also very good purchasing conditions, Continental’s strength lies in the purchase of mechanical and electronic components. Both companies have a well established portfolio of suppliers. The joint access to the partner’s purchasing expertise makes it possible for both companies to benefit from the improved purchasing conditions.