Continental Holding China Co., Ltd. Business Report FY ended Dec. 2020

Continental's Climate Strategy

  • Starting in 2020, all the electricity that Continental uses is purchased as renewable energy.
  • By 2040, all Continental production processes will be carbon-neutral.
  • By 2050 at the latest, Continental will achieve complete carbon neutrality in the value chain end-to-end. As a result, carbon neutrality will be achieved throughout for the entire business.

-Continental will focus on achieving long-term, sustainable developments in China and work to achieve carbon neutrality. At the same time, in China, the Company will maintain a solid management style that takes responsibility for people and the environment, and build a sound management system. In addition, productions plants and other operations in China will install solar-power-generating systems and work on SDGs in the Chinese market.

New Plant

-Several Chinese media sources reported that Continental held a groundbreaking ceremony for an electronic air suspension system plant in the city of Changshu, Jiangsu Province. The plant will cover a total land area of more than 13,500 square meters and is expected to start operations in the second quarter of 2021. (From various media sources dated June 29, 2020)

Strategic Cooperation

-Luokung Technology Corp. announced that eMapgo Technologies (Beijing) Co., Ltd. ("EMG") has entered into strategic partnership with Continental Holding (China) Co., Ltd. Leveraging each other's respective advantages, this will promote in-depth cooperation in the areas of China's smart city, smart mobility, and connected vehicle services etc. Luokung is in the process of the closing of the 100% acquisition of EMG. EMG will provide Continental with legally compliant map data (including ADAS map and HD map) in China, a variety of general and customized functional services, including a fleet visualized management solution for its connected vehicle platform. EMG is a top three map maker in China, has been working closely with Continental for a long time to provide intelligent location services, including map data and map service platforms. (From a press release on March 5, 2020)

-Continental announced that it signed a strategic cooperation agreement with Shanghai Re-Fire Technology Co., Ltd. (Re-Fire Technology). The companies will cooperate with each other and exchange their experience in such fields as fuel cell fluid systems, vibration control and development of relevant innovative technologies. Specific fields of cooperation will include hydrogen pipelines, gas transmission/exhaust pipelines, water delivery pipelines, end plates for fuel cell stacks, vibration control gears and rubber hose systems for hydrogen refueling stations. The strategic partnership will enable the companies to create an instant information sharing mechanism and carry out in-depth cooperation in a wide range of areas, including brand promotion, product marketing, technology upgrading, quality control, customer services and personnel development. The companies will work together to make continuous contributions in the hydrogen energy and fuel cell vehicle industry. (From a press release dated September 16, 2020)

-Continental AG (Continental) announced that it has signed a strategic cooperation memorandum of understanding (MOU) with DIAS Automotive Electronic Systems Co., Ltd. (DIAS). The companies will develop an all-round partnership with regard to core technologies of intelligent driving vehicles to further promote industrialization of intelligent vehicles. Pursuant to the agreement, they will jointly advance the application of 2-BOX brake systems by utilizing their technology, business, and resource advantages. (From a press release dated November 24, 2020)

Contracts

-Elektrobit (EB) announced it will provide its EB tresos Classic AUTOSAR software to  Nanjing SemiDrive Technology Ltd. (SemiDrive), a China-based semiconductor company focusing on next-generation, high-performance, automotive-grade system-on-a-chip (SoC) devices. The companies will make available an integrated hardware-software solution that will make it easier and more cost effective for automotive OEMs and Tier 1 suppliers to develop advanced applications for automotive electronic control units (ECUs) based on the AUTOSAR standard. EB tresos AutoCore integrated into the SemiDrive devices allows automotive engineering teams to accelerate the process of configuring, validating and generating ECU basic software, accelerating the development cycle and enabling them to more quickly bring vehicles with advanced features to market while reducing cost. (From a press release on April 22, 2021)

-Continental's integrated, smart-device, entry system (CoSmA) has won orders from three major OEMs from both Europe and Asia. The system is equipped with ultra-wideband (UWB) wireless technology that can turn smartphones into a digital car keys. This not only enables keyless entry but also prevents unauthorized access due to cyber-attacks and prevents vehicle theft. Prevent The system will be integrated into the new-generation vehicle platforms in 2021. (From a June 23, 2021 press release)

-Vitesco Technologies announced that it will supply the drive control unit for Volkswagen ID.3. It is the sole supplier of the drive control unit for Volkswagen’s MEB platform. In the Volkswagen ID.3, this device assumes a number of key functions in the electric propulsion system: it activates the electric motor, coordinates all commands initiated by the accelerator pedal, plays an integral part in charging and energy management as well as the management of the high-voltage electrical system. It also acts as an interface to the other control units inside the vehicle. The device also allows connectivity with the outside world to enable software updates, and functional enhancements at any time in the field. As a result, in addition to functional safety, great attention was also placed on cyber security during the development of the new component. The product not only contains software components developed by Vitesco Technologies, but also serves as the integration platform for software parts provided by Volkswagen, to seamlessly ensure the overall device function. The component will go into series production in further electric vehicles (EVs) from the carmaker’s other Group brands using the MEB platform. (From a press release dated August 12, 2020)

-Vitesco Technologies announced the market launch of its fully integrated electric axle drives (EMR3) for Dongfeng Passenger Car Corporation. Dongfeng Passenger Car Corporation uses the axle drive for its brand-new all-electric version of the Yixuan car. The axle drive integrates a powerful electric motor and highly optimized power electronics in a compact and lightweight unit. The Dongfeng Passenger Car Corporation version of the EMR3 delivers 120 kW of power, pushes out up to 260 Nm of torque but weighs less than 80 kilograms and is a highly compact, fully validated system that is easily designed-in to an electric vehicle. Vitesco Technologies produces the electric axle drive system in Tianjin, China. Highly automated production lines at the plant allow for large production volumes to be built to the highest quality standards. Product development has been done at the Vitesco Technologies locations in Berlin, Nuremberg (Germany) as well as in Shanghai and Tianjin (China). (From a press release on August 26, 2020)

-Continental announced that Vitesco Technologies, the powertrain business of Continental, has provided integrated electric axle drive system for the new Opel Corsa-e and the Peugeot e-208. The electric axle drive, which integrates the motor and inverter in both models, is offered with outputs from 100 to 150 kW. The more powerful variant of the new system – developing 150 kW and maximum torque of 310 Nm – is comparable with a conventional 2-liter turbodiesel engine. (From a press release on November 11, 2020)

New Technologies

-Continental announced that it will be presenting a large number of innovative software and affiliated hardware solutions at Auto Shanghai. With its new, more powerful generation of surround radar and long-range radar sensors, Continental is taking another step toward safer and more autonomous mobility. A more compact design, higher scanning rates and 360-degree vehicle surroundings monitoring with ranges of around 200 meters or around 250 meters depending on the radar sensor add up to much greater safety at short and long ranges.  It will also be presenting its end-to-end network solution for connected cars for the first time. From the sensor, the high-performance computer and the connectivity unit to the cloud, this solution implements a reliable function integration. Software functions are distributed between the cloud, the high-performance computer and what are called zone controllers. This allows Continental to offer maximum flexibility and functional safety at the same time. Functions from advanced driver assistance systems can also be integrated into the system to a limited extent. The system allows flexible options for system integration for OEMs and Tier 1 suppliers – from stand-alone network access devices to complete integration in telematics control units or intelligent antenna modules. Continental is already working with several global automotive manufacturers for 5G telematics on the basis of its successful 5G hybrid V2X platform. (From a press release on April 21, 2021)

-CNXMotion, the joint venture established between Nexteer Automotive and Continental, announced Brake-to-Steer (BtS) technology that will provide driver safety through an additional layer of directional control for highly automated and autonomous vehicles. BtS works by using the electronic brake system to safely steer the vehicle while simultaneously controlling its speed in highly automated vehicle applications. In a fully autonomous vehicle with no steering wheel present, BtS will negotiate a commanded path until a safe pull-over can be achieved. Originally developed for steering redundancy in Level 4+ autonomy, the feature can be adapted to assist a driver in multiple scenarios for lower levels (Lane Keep, Obstacle Avoidance, etc.) while a driver is still present, following the intentions provided from the driver’s steering input. CNXMotion was established as a joint venture between Continental and Nexteer Automotive in 2017 and focuses on R&D activities, including rapid evaluation, design and prototyping in its state-of-the-art facility located in Grand Blanc, Michigan. (Nexteer press release on December 2, 2020)

Award of Recognition

-Continental has been awarded FCA's Annual Supplier Award for its innovative and quality products and services for the second consecutive year. (From a November 2, 2020 press release)

R&D Center

-Vitesco Technologies announced that as of now Vitesco Technologies China has its own regional headquarters located in Shanghai. Roundabout 450 employees recently moved into their new, 6.000 square meters state-of-the-art offices in the Yangpu District. Vitesco Technologies operates several highly successful production, research and development sites in China. Its newly built R&D Center in Tianjin is expected to open before the end of 2021. (From a press release on March 10, 2021)

-Vitesco Technologies announced that its Asia-Pacific R&D center started construction in Tianjin. This center is built to develop hybrid and electrified powertrain technologies to meet demands of the rapidly growing electric mobility market in China. It is expected to be completed and put into use by the end of 2021, with a total building area of 9,000 square meters. In addition to offices, a lab is included at the center to test and validate electric drive technologies with various advanced equipment. (From various media sources dated September 9, 2020)

Major R&D Centers

R&D Center Location Business
Continental Investment (China) Co., Ltd.
Formerly:Continental Automotive Holding Co., Ltd.
Shanghai Established in 2006, operation and R&D center of Continental Group (China)
Jiading R&D center of Continental Automotive Group Shanghai Established in 2007, R&D and test for Electric Brake Systems Division and Engine System Division
Continental Automotive Systems (Shanghai) Co., Ltd. Shanghai Established in 2001, R&D Center for Electronic Brake Systems Division and Body and Security Division
Nanjing software R&D center Nanjing,
Jiangsu
Established in 2011, belong to
Automotive Electronic ID Instrument Division, engaged in
embedded software development for medium and high-end instrumentation products
Continental Heihe winter test center Heihe,
Heilongjiang
Established in 2012,  conduct winter testing for electronic braking systems
ContiTech Changshu R&D center Changshu,
Jiangsu
Established in 2013, develop products for vibration control technology
Hefei R&D center of Continental Tire (China) Hefei,
Anhui
Established in 2015, develop and test tires
Continental Test Center Yancheng Yancheng, Jiangsu Estsblished in 2016, test and validation of Continental safety products and systems, such as electronic and hydraulic brake systems, advanced driver assistance systems (ADAS) and tires
Continental Automotive R&D (Chongqing) Co., Ltd. Chongqing The first phase project of Chongqing R&D Center started in June 2017, developed automotive electronics applications, new energy cars and industrial applications and solutions. The R&D center began operation from March 6, 2019.
BU ET Asia R&D Center Tianjin

Focuses on hybrid power and electrified powertrain technology. Completed at the end of 2021 and scheduled to start operations.

ContiTech Hydrogen & Fuel Cell Competence Centre Changshu, Jiangsu

Develops and produces hydrogen energy for new-energy vehicles and fuel-cell parts. Providing high quality solutions to China's hydrogen energy and fuel -cell-vehicle market.

Factory construction

-Continental launched its photovoltaic energy generation project at its production site in Zhangjiagang, China. Phase I of the project has a total photovoltaic capacity of 1.918 megawatts and is expected to generate 1.8 million kilowatt hours per year. This means that the Zhangjiagang plant will meet half of its electricity demand through solar power generation during production in the daytime. Continental sets itself the goal of using of electricity exclusively from renewable sources in all production sites by the end of 2020. The plant chose 275 Wp polycrystalline solar modules for the project and installed almost 7,000 modules on its 20,000 sq-m rooftop surface. The total installed capacity of project phase I is about 1,918 kWp (kilowatts peak), and the conversion efficiency of the power generation system reaches more than 80%. It is estimated that this photovoltaic project is equivalent to reducing CO2 emissions by almost 1,400 tons per year. (From a press release on September 2, 2020)

-Continental AG (Continental) announced that it has opened the ContiTech Hydrogen & Fuel Cell Competence Centerat its plant in the city of Changshu, Jiangsu Province to provide solutions for the hydrogen and fuel cell vehicle market in China. The center will mainly engage in the R&D and production of key hydrogen and fuel cell components for new energy vehicles through utilizing Continental’s technological capabilities in vehicle fluid systems, vibration control, and the expertise of Continental’s material R&D center in China in rubber and plastics. The center will help accelerate local applications of Continental’s hydrogen and fuel cell related technologies in China and reduce the time that Continental spends to respond to customer requirements. (From a press release dated December 10, 2020)