12/17/2009 The international automotive supplier Continental has entered into an agreement to enrich its market presence and product portfolio through the Japanese Joint Venture Continental Automotive Corporation and integrate additional safety products including airbag control units and automotive sensors. Promotion of local know-how as growth in Asia remains a key strategic objective of the Chassis & Safety Division.

Yokohama City, Japan. The international automotive supplier Continental has entered into an agreement to increase its stake in Continental Automotive Corporation (CAC), the Japanese joint venture with Nisshinbo Holdings Inc., from 51 % to 60% in 2010. This will allow Continental's Chassis & Safety Division to integrate its airbag systems and sensorics business, confirming its strategic position as a major supplier of chassis and safety systems in Asia and in Japan, in particular. "With this step, Continental is strengthening its joint venture with Nisshinbo considerably", said Dr. Ralf Cramer, member of the Continental Executive Board and President of the Chassis & Safety Division. "Chassis & Safety aims at achieving 25 % of its sales in Asia with the full range of its product portfolio, from high-end to affordable solutions in hydraulic and electronic brake systems, passive safety and driver assistance systems as well as sensorics and chassis components. The joint venture will aim to provide a wide range of passive and active safety products for our customers in Japan and Asia, from single components to our fully integrated system solution ContiGuard®”. 

Mr. Shizuka Uzawa, President of Nisshinbo Holdings, Inc. and Dr. Ralf Cramer, member of the Continental Executive Board and President of the Chassis & Safety Division, after signing the agreement.

Click here to download this image 

CAC, headquartered in Yokohama City, Japan, was established in 2000 as a joint venture between Continental and Nisshinbo Industries, Inc. and employs a workforce of approximately 1,700 with 9 manufacturing facilities, R&D centers, test tracks and offices in Japan, Korea and China. The company offers a wide range of safety and chassis components and systems to its Japanese and Asian customers, ranging from hydraulic and electronic brake systems to chassis and surrounding sensors. Based on an existing successful organization, this expanded joint venture will provide for a broader business scope, which will include products and systems also out of Changchun, China and Cheongwon, Korea.

“Continental is convinced that successful and sustainable growth in Asia and with Asian customers can only be achieved by strengthening the local R&D, sales, and production competence we have in the respective countries", said Dietmar Siemssen, President and CEO, Continental Automotive Corporation. "In this regard, our decision to improve the product offer and know-how of CAC underlines the strategic importance we attach to our commitment towards our customers, to support them with the complete safety product portfolio and development capabilities in their programs in Asia and worldwide. In this respect, our joint venture with Nisshinbo plays a very important role. For that reason, Continental plans to increase its share to 60% in 2010 with this agreement”.

Nisshinbo Holdings Inc. oversees six companies, among them Nisshinbo Mechatronics Inc., developing, manufacturing, processing, selling, importing and exporting special industrial machinery, other machinery and its parts. Nisshinbo Mechatronics Inc. has been closely linked to the success of Continental Automotive in Japan, being a cooperation partner since the 1980s.

Strong Growth Strategy for Asia

The growth of the Asian OEMs worldwide is not only expected to increase the demand for standard safety features such as ABS and airbags, Continental also expects an increase in the installation of ESC and other new features in new vehicles, up to integrated safety systems like ContiGuard®. With this agreement, the CAC joint venture will be well positioned to offer such integrated system solutions. On the other side of the spectrum, Continental believes that growing demand for individual mobility in countries like China and India will lead to more demand for best-cost products. With a comprehensive customer focus and strategy, uncompromising quality and innovative, leading-edge products, Continental’s  Chassis & Safety Division is providing OEMs in key countries like Japan, Korea, China and India the full know-how and competence of a global automotive supplier.

Affordable Driving Safety For Everyone

To Continental, driving safety is not an issue to be negotiated, but to be provided with top quality and at an affordable price according to the requirements of each and every market of the world. Continental seeks to achieve this through two major strategic thrusts.

• The scalability and flexibility of our products, with products like entry electronic brake systems, drum brakes, specifically adapted actuation units, airbag control units and market-specific calipers. All of these examples are characterized by having less weight, less box volume, lower costs, adjusted machining, and by allowing for scalability through a family concept.
• Our proven know-how in integrating diverse systems into a car. We have called this concept ContiGuard®, which represents the next level of driving safety technology based on our vision of accident-free driving. ContiGuard® integrates all elements of active and passive driving safety. Thus, with ContiGuard®, we believe that our customers can achieve a significant reduction of accidents and number of fatalities on the road.

Affordable cars require a highly efficient technology that is tailored to the customer and regional expectations. Engineers everywhere have to work together to turn these products and solutions into reality, combining local knowledge with the experience and expertise in the established markets. "Networking and the sharing of know-how among development engineers in the individual regions will play a crucial role in the future," said Dr. Ralf Cramer. "The utilization of engineering capacities in the regions also has a part to play, as does the localization of the entire value chain: regional marketing and development, low-cost purchasing at local suppliers and a lower degree of automation in production are of crucial importance."