Continental is paying more attention to electric mobility in the future. This is because the requirements of policies and regulations continue to rise, the market is subverted, and regulations will determine the market's future technology. "Our customers are increasingly focusing on electrified internal combustion engines such as hybrids, as well as pure electric vehicles. We have long been a technology leader in the field of electronic control units and related functional software. In order to stay with our customers and the market Simultaneously, we are developing our advantages more rapidly and systematically, and applying our rich successful experience to the future of electric vehicles. "Said Andreas Wolf, head of Continental Powertrain Business Group. The powertrain business group will operate under the company name Vitesco Technologies, with Wolf as CEO. "With this strategy and the gradual optimization of our product portfolio, we will ensure that the powertrain business maintains long-term financial advantages, competitiveness and sustainability," he added.
"In the future, travel will be electrified, and we are convinced." Wolf continued: "The combination of different drive systems in this transformation will be the main feature. In other words, traditional internal combustion engines will remain for many years to come. It will continue to be used, especially when combined with efficient hybrid technology, and will make a significant contribution to reducing emissions. "
In this drive system portfolio, Continental expects different situations. For example, the high-voltage parts and hybrid solutions market is growing faster than expected. The sharp increase in production has made the business more economically attractive than previously expected.
Adjustment of internal combustion engine systems and solutions business
At the same time, the limited future growth of components dedicated to internal combustion engines has prompted Continental's powertrain business group to reduce investment in hydraulic components. This part of the strategy mainly involves injectors and pumps for gasoline and diesel engines. "The return on investment in R & D and production capacity in this business area is gradually declining," Wolf explained the reasons behind this decision.
This means that existing orders will be completed, but the impact of new orders will be limited. "This transformation phase may continue for many years, because internal combustion engines are fundamentally the driving force for hybrid solutions," Wolf added, and the company will also evaluate the exhaust aftertreatment and fueling systems business. "The main reasons are the excessive pressure on price competition and the high dependence on the development of the diesel engine market. We are currently studying all possibilities to ensure that our product portfolio remains sustainable, profitable and competitive. We are also considering establishing cooperation Partnership, "Wolf said.
The adjustment of strategy will affect business units, technology, production bases and job positions to varying degrees. Wolf states, "Given the circumstances, we must look for specific solutions. At the same time, we must keep our customers and employees involved in the transformation process. Whenever possible, we will provide employees with opportunities to learn new skills and hold them accountable. New responsibilities enable them to adapt to developments in new technology areas. "
Continue to maintain the high growth momentum of electrification
The powertrain business group is one of the few suppliers that can provide one-stop electrification system solutions. The product portfolio includes 48-volt technology, electric motors and power electronics for hybrid and pure electric vehicles, as well as technologies for fuel cell vehicles, smart energy and thermal management systems.
It is worth mentioning that Continental Group said that it would no longer consider entering the field of solid-state battery production, but so far the company has not made a final decision in this regard. DAX Continental has not been involved in the field of lithium-ion battery production. After in-depth analysis, Continental concluded that it will not invest in battery production. The technical direction of electric vehicle energy storage depends in particular on laws and regulations. Although the advent of lithium-ion batteries can accelerate the development of electric vehicles, as stated by Dr. Elmar Degenhart, CEO of Continental, other suppliers have already occupied this battery production market with their own technology in the early stages. This is also Continental Make one of the reasons not to enter this field. He added: "Continent has made a decision not to establish an attractive business model based on solid-state battery technology, and the technology may not be realized until 2030."
"Developing clean drive systems has always been our guiding principle. Therefore, we are now able to provide ultra-clean, conventional drive systems. Our technology enables gasoline and diesel engines to maintain good operating conditions while meeting emissions requirements," explains Wolf . "In the medium term, we provide medium and full hybrid solutions to make public mobility cleaner. In the long term, our laboratories have begun developing non-polluting next-generation technologies including electric drive systems, carbon neutrality, "Hydrogen-based fuels, fuel cells and hybrid fuel technologies," continued Andreas Wolf.
He added: "We will gradually complete the future-oriented transformation of the powertrain from our own strengths. In the future, Vitesco Technologies will focus on areas that can benefit from competitive advantages and develop attractive business models. With a focused product portfolio, Vitesco Technologies will be fully prepared for this. We believe that electrification development will bring business growth to the company. We will gradually make more targeted investments in electrification and pure electric technology, and more internal resources will be directed to This direction shifts and continues to strengthen our strengths in electronics.