Automotive supplier Continental AG plans to invest an additional 300 million euros (around US$ 326 million) in electric drives by 2021 in anticipation of a shift to electric cars over the next decade.
As one of the world's biggest suppliers to vehicle manufacturers, Continental is strengthening its electronics expertise as its customers including Volkswagen and Ford raise their investment in electric and ultimately self-driving vehicles.
Continental had said in January it was reviewing its Powertrain division after earnings at the business unit failed to meet expectations.
As result of ever-increasing shares of electronics, sensor systems and software in combustion engine drive systems, Continental expects a continuous growth-driven transition towards the business with electric drive systems.
The additional sales related to hybrid and electric vehicles will more than compensate for the expected business at risk from the combustion engine drive systems after 2025.
“The current decline in the diesel market for passenger cars and light commercial vehicles has a very limited impact on our business because diesel-related sales only account for less than 2 percent of sales for the whole corporation,” said José A. Avila, member of the Executive Board and President of Continental’s Powertrain division.
Continental, is a leading German automotive manufacturing company specializing in tires, brake systems, interior electronics, automotive safety, powertrain and chassis components, tachographs, and other parts for the automotive and transportation industries.
The company owns two Research and Development centers in Mexico and operates 16 production sites for most of its divisions in Cuautla, Chihuahua, Ciudad Juarez, Delicias, Guadalajara, Mexico City, Montemorelos, Monterrey, Morelia, Nogales, San Luis Potosi and Silao.