Continental commits to investment in China
German auto parts maker Continental said the company will further invest in technology development in China, indicating its confidence in the potential and future growth of the world's largest auto market.
Elmar Degenhart, chief executive officer of Continental, said: “As a global technology company and software powerhouse, we are as committed as ever to further strengthening and expanding our position in China.”
The company announced the groundbreaking of an electronic air-suspension systems plant in Changshu on Monday, which will further serve customer needs in China. The new facility in Jiangsu Province covers an area over 13,500 square meters and will start operation in the second quarter of 2021.
The focus of the company will be on providing technologies and solutions in the fields of electrification, intelligent and connected vehicles as well as industrial mobility. Continental said it is committed to providing Chinese customers with localized solutions.
Even amid the COVID-19 pandemic, the company is still optimistic about the industry's development and growth potential and willing to further invest in the Chinese market.
Enno Tang, president and chief executive officer of Continental in China, said that China's light vehicle production this year is estimated to be about 15 percent lower than last year's output. Tang said that China's medium- and long-term auto market will have moderately less growth, based on the company's estimation.
Olaf Kreis, vice president and head of electronic air-suspension systems worldwide for Continental, said Continental will keep momentum to further streamline the manufacturing process and ensure the highest quality of our products.
"By offering advanced products locally, we are able to better support our customers to provide most comfortable and safest driving solutions,” Kreis said.
In April 2020, Vitesco Technologies, the powertrain business of Continental, announced that it would set up a new research and development center in Tianjin. The center is scheduled for completion in 2021 and will develop technologies for hybrid and electric powertrains.
As the Chinese government has taken strict measures to control COVID-19 outbreak and resume production and work, multinational auto parts makers have shown confidence in Chinese market.
French auto parts maker Faurecia said after the epidemic, the Chinese market will usher in a strong recovery while consumer confidence will be restored again. The company said it will continue to invest in the Chinese market. German company ThyssenKrupp also said in June that it will invest US$200 million to build a global steering system manufacturing center project in Changzhou, Jiangsu Province.