Continental Investing Another $326 Million in Electric Vehicle Technology by 2021
【Summary】Continental intends to scale back its investments in mechanical automotive technology and allocate an additional $326 million for hybrid and electric vehicles as the auto-parts maker prepares for the eventual decline of combustion engines.
Continental AG, will invest an additional 300 million euros ($326 million) by 2021 on electric and hybrid car technologies, the Hanover, Germany-based car-parts maker said Tuesday, April 25th.
Continental intends to scale back its investments in mechanical automotive technology and allocate more funds for hybrid and electric powertrains as the auto-parts maker prepares for the eventual decline of combustion engines.
"We have to expect gradually falling demand for newly developed mechanic and hydraulic engine components," Jose Avila, head of Continental's powertrain unit said in the statement. "This is why we will reduce our expenses into these technologies step by step."
Global automakers and their components suppliers are investing heavily to develop electric-car technology to comply with tightening emission rules across the globe. Balancing these investments is key to mitigate the financial burden of having to pour money into both electric and combustion engines for years to come as the tipping point at which battery-powered cars overtake gasoline engines remains difficult to predict.
Germany-based Continental was best known for tires, but also supplies electronics for advanced driver-assistance systems like automatic emergency braking and auto-steering. It provides the components for Mercedes-Benz's automated driving. In 2016, Continental acquired a division of Advanced Scientific Concepts Inc., a company that makes a solid state LiDAR sensor used in autonomous vehicles.
Continental is relatively well positioned to benefit from the shift to electric vehicles, as it offers a range of components and sophisticated electronics systems that future cars need. The German company anticipates bringing in as much as 3,000 euros in revenue per electric vehicle it supplies parts for in 2025, about triple the revenue gained from each combustion-engine car last year, according to an investors' presentation in January.
Continental is a major global automotive supplier. It supplies parts to Volkswagen, Mercedes, Ford, Volvo, BMW, General Motors, Toyota, Honda, Porsche, and others.
resource from: The Detroit News
Originally hailing from New Jersey, Eric is a automotive & technology reporter covering the high-tech industry here in Silicon Valley. He has over 15 years of automotive experience and a bachelors degree in computer science. These skills, combined with technical writing and news reporting, allows him to fully understand and identify new and innovative technologies in the auto industry and beyond. He has worked at Uber on self-driving cars and as a technical writer, helping people to understand and work with technology.
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