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5. Continental AG Business Report FY ended Dec. 2015

Continental AG Business Report FY ended Dec. 2015

Factors
1) Net Sales
-The Company's net sales for the fiscal year ended December 31, 2015 increased by 13.7% over the previous year to EUR 39,232.0 million. Contributing factors include a slight increase in the production of cars, station wagons, and light commercial vehicles as well as a more favorable vehicle mix for the Company. In particular, NAFTA had the strongest growth in the Automotive divisions. Other factors leading to the increase in sales include changes in the scope of the Company's consolidation and positive exchange rate effects.

2) Chassis & Safety
-Sales in the Company's Chassis & Safety division increased by 12.4% to EUR 8,449.7 million in the fiscal year ended December 31, 2015. The increase in sales was caused by increased sales volumes of electronic brake systems and advanced driver assistance systems. In particular, unit sales of advanced driver assistance systems increased by 57% over the previous year. These increases were partially offset by decreasing sales in brake boosters, brake calipers, and airbag control units.

3) Powertrain
-The Powertrain division had sales of EUR 7,068.5 million in the fiscal year ended December 31, 2015, a 8.8% increase over the previous year. Notably, the division's Sensors & Actuators business unit continued its record growth, primarily due to higher sales of exhaust sensors. Sales of turbochargers and pumps increased during the most recent fiscal year. This was partially offset by decreased sales in engine management systems, injectors, the Hybrid Electric Vehicle business unit, and Transmission business unit. The combination of the integration of Emitec and organic growth of the Fuel & Exhaust Management business unit also improved sales.

4) Interior
-Sales in the Interior division increased by 16.5% in the fiscal year ended December 31, 2015 to EUR 8,154.8 million. Sales increased across all of the division's business units, driven especially by higher demand in NAFTA and China. Systems such as ECUs, tire-pressure monitoring systems, passive start and entry systems, multimedia and radio systems, instrument clusters, and displays all experienced growth.

5) Tires
-The Tire division had sales of EUR 10,408.8 million in the fiscal year ended December 13, 2015, an increase of 6.4% from the previous year. Growth occurred in the EMEA and Asia Pacific regions, while sales in the Americas declined. Commercial vehicle tire sales increased by 5% compared to the previous year.

6) ContiTech
-The Company's ContiTech division increased its sales by 36.5% over the previous year to EUR 5,367.8 million in the fiscal year ended December 31, 2015. Increases in the division's original equipment and replacement business were partially offset by decreases in the division's industrial business unit.

Acquisitions

-The Company announced that it has closed its acquisition of Elektrobit Automotive Group based in Erlangen, Germany. Elektrobit Automotive and its joint venture, e.solutions GmbH, develop powerful software solutions for complex vehicle functions, such as advanced driver assistance systems and infotainment systems, for leading carmakers and systems suppliers. (From a press release on July 1, 2015)

-The Company announced that it has concluded its acquisition of the U.S. rubber company Veyance Technologies Inc, of Fairlawn, Ohio. The transaction is valued at EUR 1.4 billion. Veyance operates globally in the field of rubber and plastics technology and recorded sales of approximately EUR 1.5 billion in 2013. Veyance generates around half of its sales in the U.S. and has markets in Latin America, Africa, China and other countries in Asia. Its product focus is on conveyor belts, hoses and power transmission belts. At the end of 2013, Veyance had 8,500 employees at 27 plants across the world. (From a press release on January 30, 2015)

Joint Ventures

-Huayu Automotive Systems Company Limited announced that it will form a braking joint venture with the Company, Huayu Continental Brake Systems Co., Ltd., in the Chongqing Liang Jiang New Area, China. The new plant will cover over 80,000 square meters, and will produce brake calipers, vacuum boosters, electric parking brakes, and other brake products. Investment in the first phase of the construction project is expected to reach CNY 600 million. The joint venture will hire over 600 people. Production operations are scheduled to begin in fall 2016. (From news releases issued by multiple sources on June 11, 2015)

-The Company and Belgium-based automotive service group D'leteren have formed a new joint venture, OTA keys S.A., to provide virtual key services for car-sharing companies in Brussels. OTA Keys will provide a system that uses near field communication (NFC) or the energy-saving standard Bluetooth low energy (BLE) to exchange data between a smartphone and a vehicle. When a driver uses a smartphone application to book a vehicle, the system sends an encrypted data record, called a virtual key, to the smartphone. The virtual key is saved on the smartphone's SIM card and contains access authorization for the specific vehicle. Using the NFC or BLE standard, the smartphone transmits the authorization data to the in-vehicle data reader to unlock the car. The Company says this system will make car-sharing services more convenient and safer to use. (From an article in the Nikkan Jidosha Shimbun on April 6, 2015)

Recent Developments

-The Company announced that it will begin mass producing its electric parking drum brakes in the second half of 2017. These electric parking drum brakes will be initially used on A- and B-segment models from a Japanese OEM and a European OEM. The addition of the drum-type electric parking brake (EPB) is expected to further increase the Company's share in the growing EPB market. The Company developed the electric parking drum brake system for compact and mini vehicles with strict cost requirements. The system consists of two actuators, which are integrated into the drum-brake base panel on the rear axle, and control software. The new EPB is expected to work with advanced driver assistance systems, improving safety on congested roads and serving as an emergency brake in the event of brake failure. (From an article in the Nikkan Jidosha Shimbun on November 17, 2015)

-The Company will introduce a new mild hybrid system using its 48 Volt Eco Drive to the market in 2016. This will be the Company's first mild hybrid with a 48 V system. Production will start in the beginning of 2016. The new system will be installed first by European automakers, which are scheduled to launch 48 V mild hybrids in the middle of 2016. Orders have also been received from Asian and U.S. carmakers. (From an article in the Nikkan Jidosha Shimbun on October 28, 2015)

-The Company held a media briefing on future trends in virtual car key systems that lock and unlock cars wirelessly in Yokohama City. Wolfgang Pishe, from Continental's Body & Security business unit, said that smartphones will be used as both a convenient virtual car key system and a vehicle authentication device. He cited a service in which a virtual key downloaded in a smartphone can lock and unlock the vehicle by exchanging data wirelessly with the vehicle via near field communication (NFC). OTA keys S.A., a joint venture between the Company and a Belgian company, will begin providing such a service for car-sharing businesses in 2016. (From an article in the Nikkan Jidosha Shimbun on September 1, 2015)

-The Company will start manufacturing products for Advanced Driver Assistance Systems (ADAS) in Southeast Asia in 2016. Products include cameras, millimeter-wave radar systems, lasers and other sensors, which will be supplied for Japanese OEMs. This will be the Company's first production facility of ADAS-related parts in Asia and its third production base for ADAS-related parts in the world, after Germany and the U.S. In Southeast Asia, the Company has manufacturing facilities in Indonesia, Malaysia, Thailand, and the Philippines. The Company will produce ADAS-related parts at one of those the existing plants. (From an article in the Nikkan Jidosha Shimbun on June 11, 2015)

-The Company announced that it is ready to launch the third generation of power electronics. This system, which is even more compact and even more powerful, will enter series production in August 2015. The third generation of its power electronics is six times more powerful than the first generation. The system's weight has also been reduced from around 12 kg to approximately 8 kg. (From a press release on April 21, 2015)

Recent Development Outside Germany
-The Company will mass produce turbochargers in China and North America from 2017 and 2018, respectively, establishing a tetrapolar global production structure consisting of Germany, Czech, China and North America. The Company will also develop a turbocharger for diesel engines. These actions are a response to the growing demand of turbochargers due to the prevalence of smaller engines. (From an article in the Nikkan Jidosha Shimbun on November 24, 2015)


-The Company's subsidiary, Continental Group (China), announced that its Wuhu Plant began mass producing its air-assisted SCR urea injection system on August 6, 2015. Production is performed on a newly constructed production line that is capable of producing over 100,000 units per year. The Company's SCR urea injection system achieves an average particle size of approximately 30 microns. The system can integrate the functions of engine control systems, engine condition detection systems, injection volume measurement systems, heat control systems, and failure diagnosis systems. (From news releases issued by multiple sources on August 17, 2015)

-The Company announced that its Tianjin Plant began producing plastic mechatronic control units for automotive transmissions. The control units are high-precision metal-plastic composites integrated with an electronic system. The use of plastic helps reduce product weight and size. (From news releases issued by multiple sources on July 20, 2015)

-The Company announced that its second CAP (China Asia Production) line in Tianjin started mass production. The line is dedicated to the production of "EAST" transmission control units (TCU), a product specifically customized for the Chinese market. With the new CAP line, the Company doubled its production capacity for the "EAST" TCU. The "EAST" TCU consists of a 32-bit modular architecture which is suitable to control all types of automatic transmissions: step automatic, double clutch, continuously variable and automated manual transmissions. The next generation "EAST" platform is already under development and is scheduled to go into series production in 2018. (From a press release on February 13, 2015)

Contracts

Tire
-The Company and Schmitz Cargobull AG are strengthening their longstanding collaboration by introducing the Conti Hybrid HT3 trailer tire as a standard tire in the product portfolio of the German truck trailer manufacturer. (From a press release on November 19, 2015)

-The Company is strengthening its long-standing partnership with MAN. Conti EcoPlus tires from the Company's Generation 3 truck tires are standard fitment on the long-haul vehicle MAN TGX EfficientLine 2. Furthermore, MAN adds Conti Hybrid as well as Conti Scandinavia truck tires in all standard sizes to its original fitment portfolio. (From a press release on May 11, 2015)

-The Company has two types of tires specifically designed for electric or hybrid drivetrains available under the brand "Conti.eContact." The 17- and 18-inch Conti.eContact tires for HVs offer 20% less rolling resistance than that of a conventional tire, while the 20-inch Conti.eContact for EVs delivers 30% lower rolling resistance. An EV fitted with the tires can extend its cruising range by up to 6%. The Company has already started supplying Conti.eContact series tires as original equipment on the Renault Twizy compact EV and the Volkswagen e-Golf. (From an article in the Nikkan Jidosha Shimbun on March 11, 2015)

-The Company announced that its tires are featured on display vehicles at the Geneva Motor Show 2015. The Audi R8 e-tron, A3 e-tron, Mercedes V-class hybrid, VW Golf hybrid, Renault Kadjar SUV, and Skoda Superb all used the Company's tires. Other brands using the Company's tires include Rolls-Royce, Land Rover, Tesla, and Opel. Models from Asian automakers also featured the Company's tires, including the new Hyundai ix 20 and the Suzuki S-Cross. (From a press release on March 10, 2015)

Strut mount
-In collaboration with General Motors LLC, the Company developed a strut mount featuring fiberglass-reinforced polymide for the new Cadillac CT6, which is set to be launched at the end of 2015. (From a press release on November 11, 2015)

MKC1 next-generation electrohydraulic braking system
-The Company has received the first order from a European OEM for its MKC1 next-generation electrohydraulic braking system, which integrates a brake master cylinder, ABS, and ESC. Mass production of the MKC1 is scheduled to begin in early 2016. The MKC1 will be fitted on a new model to be launched by mid-2016. The integrated structure of the MKC1 enables a compact and lightweight module. Input through the brake pedal is turned into an electric signal to shorten the response time for braking. The Company will promote the MKC1 to various automakers as a system capable of improving the performance of automatic emergency braking. (From an article in the Nikkan Jidosha Shimbun on September 7, 2015)

BMW "i8" adopted components
-The Company announced that it supplies more than 50 different components and systems for the BMW i8. These components include the high-performance turbocharger for the 1.5-liter three-cylinder combustion engine, the recuperation-capable brake system MK 100 ESC Premium Hybrid, the actuator and interface for the dynamic cruise control function, pedestrian protection system pressure SATellite (PPS pSAT), a direct tire pressure monitoring system, heating and coolant lines, Beneron foil for the scuff guard, V-ribbed belts for the belt starter generator system, and the engine mounting system for the combustion engine. (From a press release on April 23, 2015)

3.5-inch color liquid crystal instrument panel
-The Company announced that it will mass produce its 3.5-inch color liquid crystal instrument panels for Geely Automobile's Borui. These instrument panels were designed based on the MCU platform concept. The panels will be produced by Continental Automotive Wuhu Co., Ltd., signifying the first time that the products will be locally developed. (From a press release on July 10, 2015)

LTE capable telematics module
-The Company announced that, beginning this summer, its latest LTE capable Telematics Module will enable a wide variety of connectivity services for Subaru's in-vehicle technology, Starlink, for U.S. market vehicles. In addition, the Company is now offering its curved OLED Touch Display. The most striking detail is that the new display is curved, which allows car manufacturers the design freedom to seamlessly integrate the display, in the center console, for example. The Company will present these technologies at the Consumer Electronics Show 2015 in Las Vegas, U.S. (From a press release on January 6, 2015)

Awards

-The Company's power electronics site in Budapest, Hungary recently received the Audi Quality Award "Prevention & Reliability 2014." (From a press release on April 21, 2015)

-The Company received two 2015 Automotive News PACE awards, one of its printed circuit board substrate technology for transmission electronics, another for a multiapplication unified sensor element. (From news releases issued by multiple sources on April 20, 2015)

Outlook

-The Company announced that it aims to increase its annual sales to over EUR 50 billion (JPY 6.55 trillion) by 2020, a 45% increase from its sales result in 2014. The Company anticipates that sales will be helped by growth in vehicle production volumes and by an increase in use of automotive electronics and software due to stricter legal requirements for safety and energy consumption (From an article in the Nikkan Jidosha Shimbun on March 11, 2015)

-Approximately 6% of the Company's sales are invested in R&D each year.

R&D Structure

-As of December 31, 2015, the Company has 147 locations across 35 countries where research and development takes place.

R&D Facilities

-The Company announced that it has opened a new research and development center for tires within the premises of its tire manufacturing plant in Hefei, China. This is the first time that the Company has opened a R&D center for tires in the Asia Pacific region. Over EUR 4 million (JPY 540 million) was invested in the new center. The Company aims to increase its sales in China by developing new products that meet growing local demand. (From an article in the Nikkan Jidosha Shimbun on May 29, 2015)

-The Company announced that it will open its new engineering center in Toyota City, Aichi Prefecture, Japan on June 1, 2015. This is the second engineering center that the Company will have in Japan. While Japanese automakers are expanding their businesses globally, the new engineering center is expected to enhance the Company's development capability in Japan. (From an article in the Nikkan Jidosha Shimbun on April 11, 2015)

-The Company announced it has inaugurated a new 13,000-square-meter facility to expand its R&D capabilities in Bangalore, India. With a total investment of EUR 12.4 million and a current headcount of around 1,000 engineers, the new Technical Center India (TCI) facility in Electronic City Phase II will meet the increasing demand for engineering and software development skills to support global R&D projects as well as local customers. Eight R&D labs will be housed in the new facility. (From a press release on January 22, 2015)

R&D Activities

-The Company, Deutsche Telekom AG, Fraunhofer ESK, and Nokia Networks have demonstrated real-time communication between vehicles via the LTE cell network. This was a demonstration of the first project from the "Innovation Charter for the digital A9 motorway test bed". The exercise demonstrates how highway vehicles can share hazard information using the LTE network of Deutsche Telekom. As extremely short transmission times are vital for this purpose, a section of the Deutsche Telekom network was equipped with Mobile Edge Computing technology from Nokia Networks, and upgraded with position-locating technology developed by Fraunhofer ESK. This combination will, for the first time, reduce signal transport times between two vehicles below 20 milliseconds. Combining the technology with the vehicle electronics interface developed by the Company gives rise to a number of applications aimed at making driving safer and more comfortable. (From a press release on November 9, 2015)

-The Company presented the first set of driving test results for the connected, dynamic electronic horizon system (eHorizon). The Company is testing the reliability of the dynamic eHorizon and its various applications in a series of new demonstration vehicles. The vehicles are connected to a backend platform via a mobile radio module, allowing data transfer in both directions. The on-board systems receive constantly updated route and surroundings information such as topographical data or temporary speed limits. (From a press release on November 5, 2015)

-The Company is supporting a joint pilot project between BMW Group and its logistics partner SCHERM Group to promote environmentally friendly trucks. As part of the project, the Company is equipping a Terberg YT202-EV electric truck with its third generation EcoPlus and Hybrid tires and its integrated tire pressure monitoring system ContiPressureCheck. The-truck has been traveling between the SCHERM logistics company and the BMW plant in Munich several times a day since the beginning of July, delivering vehicle modules such as shock absorbers, springs and steering gears. (From a press release on August 11, 2015)

-At IAA 2015, the Company will be showing that the benefits of low-voltage hybridization, already demonstrated in vehicles with gasoline engines, can achieve considerable savings in fuel consumption in vehicles with a diesel engine. The Company has integrated its 48 V Eco Drive technology in a mid-size class model with a 1.6-L TDI drive. Calculations with the Diesel Eco Drive vehicle promise additional consumption savings of 7–9%. Measurements in accordance with the New European Driving Cycle (NEDC) have shown that nitrogen oxide emissions from the test vehicle were reduced by up to 10% and by up to 20% in the new Worldwide Harmonized Light Vehicle Test Cycle (WLTC). Production launches of two applications for 48 V Eco Drive hybridization are already scheduled for 2016, one in combination with a gasoline engine and the other in combination with a diesel engine. (From a press release on August 11, 2015)

-The Company is coordinating the "Ko-HAF – Cooperative Highly Automated Driving" combined research project. The aim of the project is to research new systems and functions permitting highly automated driving at higher speeds and in more complex situations. During highly automated driving, the driver no longer has to monitor the systems and can instead leave the burden of driving to the vehicle for a period of time. Ko-HAF researches not only driver involvement in highly automated driving, but also cross-partner functions and communication between highly automated vehicles. Ko-HAF was launched in June 2015 with a consortium of automobile manufacturers, automotive suppliers and public partners. Ko-HAF has a total budget of EUR 36.3 million and is expected to run through November 2018. It is being supported by Germany's Federal Ministry for Economic Affairs and Energy (BMWi) as the first project within the framework of its new program "New Vehicle and System Technologies." (From a press release on August 6, 2015)

-The Company has reached an important milestone in its research project for the industrialization of dandelion rubber in tire production. The first winter car tires with dandelion rubber tread will be tested at the Company's test site in Arvidsjaur, Sweden. In the fall of 2014, the Company presented the first test tires in a limited series made from the material that the Company is calling Taraxagum. The Taraxagum tires represent an important step in reaching the long-term goal of making tire production more sustainable and less dependent on traditional raw materials. (From a press release on July 23, 2015)

Technological Alliance

Continuously variable planetary transmission technology developed with Fallbrook Technologies
-The Company announced that it has entered into licensing and engineering services agreements with Fallbrook Technologies Inc. The central focus of the collaboration is Fallbrook Technologies' NuVinci transmission technology. This continuously variable planetary (CVP) is a new class of continuously variable transmission (CVT) which utilizes rotating balls that allow the transmission ratio to continuously change. The technology can be used to develop customized products for a wide range of applications, including motor vehicles. (From a press release on November 19, 2015)

Product Development

Connected Eneregy Management (cEM) demonstration vehicle
-The Company announced that it will present its connected Energy Management (cEM) demonstration vehicle for the first time at CES 2016. The car is a mild hybrid equipped with the Company's 48 Volt Eco Drive system, which provides fuel savings of up to 21% compared to a base Golf VI with a 1.2-liter TSI engine. The cEM improves fuel efficiency by another 3-4% without changing the vehicle architecture. (From a press release on December 16, 2015)

Intelligent Glass Control films
-At the 2016 Consumer Electronics Show (CES) in Las Vegas, the Company is presenting a demonstration vehicle which can darken all windows at the touch of a button. "Intelligent Glass Control" uses special films which are inserted into the glass and can change their transparency through electric signals. These films are able to reduce the solar radiation more effectively than other technologies, thus significantly reducing the interior temperature. Up to now, this technology was only feasible in the roof area for a small number of high-end cars. The demonstration vehicle will feature the technology for side and rear windows and the windshield for the first time. (From a press release on December 10, 2015)

Electrically assisted turbocharger
-The Company plans to release an electrically assisted turbocharger for vehicles with a 48V drive system by 2019. Conventional turbochargers are driven by the engine's exhaust gas, which often lead to weak performance and turbo lag at low rotation levels. The new electric turbocharger can be powered by energy generated from the 48V system, and offers high performance even at engine start, thus improving the vehicle's fuel economy. Jose A. Avila, head of the Company's Powertrain Division, emphasized the system's importance, "Boosting turbocharger performance at low engine speeds of 1,500 rpm or below is essential especially for diesel vehicles." (From an article in the Nikkan Jidosha Shimbun on December 2, 2015)

Strut mount featuring fiberglass-reinforced polyamide
-The Company's ContiTech Vibration Control business unit has developed a strut mount in which fiberglass-reinforced BASF Ultramid polyamide is used as the primary structural component. It is the first strut mount made of this material, which is used both at the front and rear axle in the chassis of passenger cars. The strut mount offers advantages over traditional steel or aluminum variants such as a 25% decrease in weight and a longer service life. A highly insulating rubber element in the mount enhances ride comfort. (From a press release on November 11, 2015)

Xpreshn surface materials for vehicle interiors
-The Company's Benecke-Kaliko division has unveiled the Xpreshn product family of surface materials for use in vehicle interiors. Xpreshn and Xpreshn HD (High Definition) supersede Benecke-Kaliko's Tepeo and Tepeo 2 solutions. The Xpreshn Light and Xpreshn HD Light decorative foils offer vehicle manufacturers the ability to further reduce the weight of their vehicles. They enable an additional 20% in weight savings compared with the Xpreshn and Xpreshn HD materials and 60% in weight savings versus conventional solutions. (From a press release on November 3, 2015)

Augmented reality software
-The Company announced Elektrobit (EB) will build the Augmented Reality (AR) Creator software suite that will foster the creation of augmented reality solutions. Following its acquisition in July 2015, the Company is consolidating EB as a standalone software company. EB will focus on developing state-of-the-art software for carmakers and tier 1 suppliers. EB will develop sensor data fusion software and a software framework for augmented reality HUDs for AR Creator. (From a press release on October 14, 2015)

Components presented at Busworld exhibition in Belgium
-The Company is presenting its portfolio of bus tires, electronics, fleet management, instrumentation, and ergonomic solutions at Busworld in Kortrijk, Belgium. Highlights include the fully configurable instrument cluster MultiViu Professional 12 and the tire pressure monitoring system (TPMS) ContiPressureCheck. The fully configurable instrument cluster has a high-resolution, 12.3-inch color TFT display, real-time capable 2D graphics, and video imaging. The Company is also presenting the ProViu Mirror and ProViu ASL360 camera systems. ProViu Mirror offers an alternative to exterior mirrors by installing two cameras on each side of the vehicle, which transmits recordings to two displays on the right and left of the A-pillar. The technology considerably expands the visible area compared with conventional exterior mirrors, and maximizes driving safety while simultaneously cutting fuel consumption by up to 2%. (From a press release on October 6, 2015)

Road Database road information system
-The Company's Intelligent Transportation Systems (ITS) Division presents Road Database, a system that can supply accurate route information to advanced driver assistance systems. Road Database uses information from vehicle hardware sensors to generate a machine-readable representation of the road. Depending on the purpose for which it is required, the system is designed either to complement conventional digital street maps or offer an alternative. The Road Database solution developed by the Company exploits the fact that sensors currently in modern vehicles continuously record a vast amount of information. The road data is first processed to extract features of the road in the Road Database format. The in-vehicle Road Database software then compares this data against any stored information for the same road. The newly identified differences are then anonymously and securely transmitted to the backend operated by the Company. (From a press release on September 11, 2015)

Mild hybrid system with electrically heated catalyst
-The Company is enhancing its 48 V mild hybrid system with an additional component: The Electrically Heated Catalyst EMICAT for 48 V electrical systems reduces catalyst light-off time for both gasoline and diesel engine vehicles. The catalyst's faster light-off time allows for faster and more frequent shut downs of the engine, thus allowing more engine-off coasting and improving start-stop functionality. These advantages allow the EMICAT to offer fuel savings between 3 and 4% in conjunction with a 48 V hybrid system. (From a press release on September 10, 2015)

V2X technologies
-The Company will be presenting a Left-turn Assist based on Vehicle-to-X (V2X) technology at the Frankfurt Motor Show (IAA). This technology issues an audible and visual warning to alert the driver of an impending collision due to the presence of a hidden approaching vehicle during a left-turn maneuver. Other functions offered with the V2X technology include the Electronic Brake Light and the Roadworks Assistant. The Electronic Brake Light contributes to forward-looking driving by notifying the driver when a vehicle further ahead in traffic is braking, even if it is not visible. If a vehicle is approaching construction, the Roadworks Assistant provides information about the affected area and recommends the lane the driver should choose to ensure optimum traffic flow. (From a press release on September 10, 2015)

Sensor module with integrated multi function camera and lidar
-The Company has developed an integrated sensor module Multi Function Camera with Lidar (MFL) by integrating a camera and an infrared Lidar (Light Detection and Ranging Sensor) into a single compact unit. Series production started in 2015. The developed unit is now supplied to the Toyota Motor Corporation for their brand new active safety packages "Toyota Safety Sense C" in compact cars. By combining a camera with an infrared Lidar, the new sensor module is able to detect objects ahead of the vehicle. If there is a chance of collision, the system prompts the driver to brake with an audio and visual cue. If the driver fails to so promptly, the system automatically brakes. A crash can be avoided at speeds up to approximately 80 km/h if the relative speed to the detected object is less than 50 km/h. If the speed differences are greater, emergency braking will mitigate the force of the impact. (From a press release on August 27, 2015)

Air springs for extreme temperatures
-The Company's ContiTech Air Spring Systems business unit has launched two new types of air spring as original equipment for commercial vehicles: air springs from the Arktis series for use in especially cold areas and air springs for use in high temperatures. Targeting growing transport volumes in cold regions, ContiTech has developed a cold-resistant air spring for semi-trucks. The key basis for the cold-resistant air springs is the special rubber compound used. With the new air spring, trucks are optimally equipped to operate in temperatures as low as -55°C. ContiTech has also developed an air spring for high-temperature applications. It is based on a compound comprising chloroprene rubber (CR) as the main component. Tests in a climate chamber have shown that the new air spring offers twice the service life of a standard product in temperatures of 80°C. (From a press release on August 6, 2015)

ContiTech systems presented at IAA 2015
-The Company's ContiTech division will exhibit innovations for sustainable mobility at IAA Cars 2015 and will also be presenting the latest findings from research into the use of natural rubber from the roots of the dandelion plant for vibration and mounting elements. The highlights will include a rear-axle transmission crossbeam made from polyamide, a double-sided timing belt for balance shafts, and a modular hose line for turbochargers. (From a press release on July 30, 2015)

48 V Eco Drive demonstration vehicle connected to eHorizion
-The Company plans to present its "48 V Eco Drive" vehicle connected to its eHorizon system at the IAA 2015. The 48 V Eco Drive demonstration vehicle is a series production Volkswagen Golf model with a 1.2-L gasoline engine. The eHorizon's predictive energy management enables even more efficient driving strategies with additional expected fuel savings of 2-3%. (From a press release on July 20, 2015)

Demonstration vehicle with adaptive cruise control system combined with eHorizon
-The Company is presenting a test vehicle in which an Adaptive Cruise Control (ACC) system is combined with elements of the dynamic eHorizon for the first time. The eHorizon combines the precise accuracy of road maps from HERE, a subsidiary from Nokia, and the sensor information from the vehicle with additional levels of information. This includes data on lane-keeping and routing, as well as route information such as curve radius, upward and downward slopes, and data such as current traffic commands and restrictions. The test vehicle regulates driving speed and full longitudinal control in ACC mode, using information not only from vehicles in front but also accounting for environmental parameters such as road characteristics or speed limit information provided by eHorizon. (From a press release on July 14, 2015)

Dynamic eHorizon service
-In 2017, the Company will implement its "dynamic eHorizon" service to provide real-time traffic information for drivers through connected vehicles. The service uses a digital map which is updated based on other vehicles' driving information and other real-time data. The system collects data on the cloud, and informs the driver of speed restrictions and areas of congestion. The Company believes that this technology will complement cameras, radars and other sensors and will enable "predictive driving" required for future autonomous driving. (From an article in the Nikkan Jidosha Shimbun on July 9, 2015)

Electric drive customized for China
-The Company has developed a new electric drive specifically for the Chinese market, featuring the innovation of combining the electric motor, transmission, and power electronics in a single unit. As a result, considerable cost savings were achieved, while the weight of the drive was reduced by approximately 15%. The basic design was created in Berlin and Nuremberg, the headquarters of the HEV business unit. Specific customer applications are developed at the Company's facilities in China, where the new motor is produced with Chinese suppliers. The system is scalable and covers all performance levels in the 60 to 120 kW range. As a result, it can be used in a variety of vehicles, from plug-in hybrids to powerful electric vehicles. The drive is available in two motor variants: an asynchronous machine (ASM) and a permanent-magnet synchronous machine (PSM). The new drive system will be displayed to the general public at IAA 2015. (From a press release on June 30, 2015)

Road Departure Protection systems
-The Company is working on new Road Departure Protection systems that aim to eliminate unintended road departures, preventing fatal accidents from occurring on highways and rural roads. Using environmental perception techniques like road edge detection or road course preview, the systems should actively intervene if the vehicle unintentionally leaves the road by steering the vehicle back into its lane. These systems differ from Lane Keeping and Lane Departure Warning systems in that they specifically monitor the outside boundaries of the roadway and have more control to keep the vehicle inside the lane. (From a press release on June 23, 2015)

Haptic Feedback Display
-The Company has developed a Haptic Feedback Display – a touch screen display with tactile feedback for use in cars - and will begin mass production in 2017. The display's inbuilt actuators trigger mechanical feedback to the fingertips of the driver. This improves the device's operating safety, as the user can check the display without looking at it. The haptic feedback characteristics can be freely configured, so that it can be adapted to brand-specific haptic standards. It is possible to enlarge the size of the 8-inch display for demonstration to 12.3 inches at present. (From an article in the Nikkan Jidosha Shimbun on June 10, 2015)

Demonstration vehicle with Surround View camera system
-The Company has developed a prototype vehicle to demonstrate Surround View camera technology that actively assists drivers while backing up. Four fish eye cameras are built into the prototype: one at the front in the grill, one at the rear and one at the base of each side mirror. Each camera has an aperture angle of more than 180°, making it possible to have a gapless 360°view of the vehicle's surroundings. Objects in the vehicle's path which obstruct the space needed for maneuvering are recognized in the image analysis. The electronic control unit for the Surround View system is connected to the vehicle's electronic brake system and automatically brakes when a collision with a recognized object cannot otherwise be avoided. Another strength of the technology is its ability to classify objects, such as pedestrians or cyclists. (From a press release on May 5, 2015)

Investment outside Germany

-The Company's subsidiary, Continental Tire the Americas, LLC, has broken ground on the expansion of its Sumter facility in South Carolina, U.S. The second phase of construction will increase tire production capacity from approximately four million units in 2016 to approximately eight million units by 2021. Approximately 720,000 square feet will be added in the expansion, which includes the new production hall and expanded warehouses. The expansion will add approximately 900 positions for a total workforce of 1,600. Altogether, the Company will invest more than USD 500 million into the Sumter plant. Tires produced at the Sumter plant will help satisfy increasing demand for Continental and General brand tires. (From a press release on September 10, 2015)


-The Company's Changshu Compounding Center in Changshu, China, which is ContiTech's first rubber compounding plant outside Europe, began operations on July 3, 2015. The new plant produces rubber compounds mainly for tires, conveyor belts, air springs and rubber hoses. The EUR 10 million investment is the largest investment made by ContiTech's compounding division. A new extrusion line has the capacity to produce one ton of rubber compounds per hour while a new compounding line is expected to produce 10,000 tons per year. (From a press release on July 13, 2015)

-The Company announced that it will launch the third phase of its plant expansion project in Hefei, Anhui province, China. The Company has already invested EUR 250 million in the Hefei Plant, with another EUR 250 million scheduled to be invested during the third phase. Currently, the plant can produce 5 million passenger car tires per year. The plant's annual passenger car tire capacity is expected to increase to 14 million units by 2019. (From a press release on June 3, 2015)

-The Company announced that ContiTech Division's Benecke-Kaliko Group has held a groundbreaking ceremony for its new plant in Changzhou, China. The plant will be operated by Benecke Changshun ECO Trim Co., Ltd., a joint venture between Benecke-Kaliko and Jiangsu Changshun Group Co., Ltd. The facility will produce Acella Eco, a low-CO2-emission and allergen-free material for automotive interior components. Since the material satisfies tighter environmental restrictions on in-vehicle components, demand in the Chinese market is growing. The Changzhou facility will be Benecke-Kaliko's second production base for Acella Eco in China, following its existing plant in Changshun. Benecke-Kaliko will invest EUR 40 million in the first phase of the construction plan, which will be its largest investment project in China. The new plant will cover 24,000 square meters and is expected to hire 250 people. (From news releases issued by multiple sources on January 23, 2015)