Continental: No EV battery cell production, but greater focus upon electromobility
In the past it remained open to a potential investment in solid-state battery cell production, however Continental has now ruled out entering this market. Andreas Wolf, chief executive officer of the company’s Powertrain business, states that “the disruptive market no longer offers any attractive economic prospects for battery cell production for Continental.”
Wolf’s comment comes as the Powertrain business announces a change of course that will see it focus more heavily upon electric propulsion’s role in future mobility. This marks a turnaround from Continental’s prior expectation that combustion engines will continue as the powertrain of choice for at least the next couple of decades.
Observing that Continental’s customers are “increasingly and consistently turning to the electrification of combustion engines through hybrid drives as well as to pure battery-powered vehicles,” Wolf declares that “the future is clearly electric.”
This future includes hybrid powertrains, yet Continental only foresees “selective growth opportunities” in future for components for combustion-only vehicles. Therefore, the Powertrain division is reducing its investment in the hydraulic components business, which relates to injectors and pumps for petrol and diesel engines. “Investments in research and development and in production capacity for innovations are becoming less profitable,” comments Wolf.