Continental sticks to the road of research and development in market
Continental is confident in the Chinese automotive market’s growth potential and will continue its investment in the country, with a focus on future mobility, said the German technology company’s senior executives.
“China saw a dip in car sales last year, but we think of it as a marker of China’s transition into a developed market,” said Enno Tang, president and CEO of Continental China.
“China remains one of our most important markets and we will continue our investment in the country,” said Tang.
He made the remarks on Wednesday after Continental unveiled its 280 million yuan ($41.67 million) research and development facility in the city of Chongqing, Southwest China.
“Our business in China is growing, and the opening of the Chongqing research and development center demonstrates our full confidence in the local market and the continuous implementation of our ‘in the market, for the market’ strategy,” said Tang.
As Continental’s 18th R&D center in the country, the facility is committed to developing automotive electronic products and solutions, covering body electronics and powertrain.
Tang said it expects to create jobs for 400 engineers in future mobility by the end of 2020.
He hopes the facility will strengthen collaboration with local customers, which now include Changan Auto and its joint venture Changan Ford, to meet specific demands in the Chinese market.
Johann Hiebl, head of Body & Security and Infotainment & Connectivity at Continental, said the facility will enable the company to better coordinate its efforts toward the intelligent connected vehicles in the Chinese market.
“In fact, we’re witnessing how the automotive industry is transforming itself, taking on new challenges and shaping the future of mobility.
“In this evolution, especially in the Chinese market — with automotive manufacturers and mobility solution providers as our customers — we are increasingly taking on the role of innovators and adopters of new technologies and services,” said Hiebl.
He said Continental is conducting a wide range of experiments in China concerning connectivity.
It has also established a joint venture with China Unicom to explore new services.
“So we are not merely saying it; we are doing it,” said Hiebl.
Hiebl also expects China to lead the market by integrating mobile payments with connected vehicles amid widespread use of e-wallets offered by Alipay and WeChat.
Globally, Continental is shifting the focus of its business to future mobility.
The company said it has produced about 82 million sensors for advanced driver assistance systems over the past few years.
It has already received an order for volume production of its 5G connectivity solution.
“We are supplying what others are still testing. Our solutions, components, and systems are generating enhanced safety, efficiency and comfort in four out of five vehicles worldwide,” said CEO Elmar Degenhart in a statement about its fiscal 2018 performance.
Continental’s sales totaled 44.4 billion euros ($49.73 billion), with its adjusted earnings before interest and taxes margin reaching 9.3 percent year-on-year.
This was faster than the market, which the company credited with its technology portfolio.
“We are the architects of an ecosystem of safe, clean and intelligent mobility. When people talk about the ‘mobility of the future’, they mean Continental,” Degenhart said.