Continental, Europe’s largest tire manufacturer, is increasingly turning to actuators, brakes, safety technology and information technology. In 2012, the Continental Group benefited from the automotive technology sector and had already caught up with industry giants like Bosch.
The prosperity of the sensor is an important weapon for the mainland group to combat the sales crisis in the local market. At the same time, the Continental Group also hopes to accelerate the "steps" of traditional businesses: The group is catching up with the global giants of the tire industry, Bridgestone, Michelin and Goodyear's goal is part of its "2025 strategy," but it must first overcome the impending arrival. The difficult year.
Continental Group CEO Elmar Degenhart expects that Continental's 2012 sales will increase to 32.5 billion euros, and its profit will account for more than 10% of total revenue. Despite the bad news from some parts suppliers and car manufacturers, Degenhart still does not declare its annual goal invalid.
Degenhart’s confidence was surprising. However, Continental Group remained profitable until the end of the third quarter. Its profit reached 1.45 billion euros, far more than the 1.242 billion euros it had last year. Nearly 170,000 employees of the Continental Group in the world hope that the Group's homeopathic situation can continue for some time.
Continental Group not only encountered difficulties in Western and Southern Europe. Like many competitors, the ups and downs in other parts of the Eurozone also plunged the group. Eric Heymann, an industry analyst at the Deutsche Bank Research Institute, warned: "Europe's periphery is languishing because people fear that their work can't afford a new car."
The decrease in the number of new car registrations means that orders have decreased. However, Continental Group has long had strong support from other states. Nearly 20% of Continental's sales come from Asia, and Degenhart called the region “a strong driver†for Continental. In addition, the Continental Group also recorded good performance in Mexico and North America. However, the most important markets are still Germany and Europe.
In addition, the Continental Group also unwaveringly expanded its network of factories: New factories were built in India, Malaysia, Brazil, the United States, and especially China. Degenhart said that up to 10 new plants will be built by 2025.
In order to deal with some market downturns, Continental Group also relied on recently developed product areas. The focus of research remains on electric vehicles, although it is expected that there will be very few opportunities for the development of pure electric vehicles in the medium term.
While the sales of small diesel engines from the Continental Group have stagnated, the Powertrain business, which has long been a “problem childâ€, will soon gain the same profits as other sectors.
Even in the traditional tire business, the competition is uninterrupted. Masaaki Tsuya, CEO of Bridgestone, the world's leading tire supplier, wants to fight against Continental in Europe. Michelin’s goal of ranking second in the world is to record direct sales of 1.6 billion euros to 2.2 billion euros in its core business by 2015. It is reported that the only other pillar business of Michelin is tourism services. In addition, the Continental Group must also pay attention to Goodyear and Korea's rising Hankook Tire.
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