Continental’s major shift in focus to Asia

Asia remains the No.1 growth market for the automotive industry, and the numbers are impressive: Over 50 per cent of all vehicles produced worldwide come from Asian automakers and approximately 30 per cent of all vehicles manufactured worldwide come from Japanese automakers. Against the background of the 2020 Olympic Games in Tokyo, Japanese vehicle manufacturers are also among the automotive companies that are pushing the development of innovations in advanced driver assistance systems (ADAS) and automated driving.

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The key to “zero accidents” is the development from assisted to automated driving on the basis of surrounding sensors

The Advanced Driver Assistance Systems business unit of the international technology company Continental is also profiting from the dynamics in Asia. Continental began research on driver assistance systems 20 years ago, and today the company is ideally positioned, thanks to its core skills in assisted and automated driving such as cameras, radar systems, high-resolution laser sensors, electronic control units and software.

“Advanced Driver Assistance Systems is our strongest growth area. This year we will achieve sales of well over one billion Euro, thanks to our surrounding sensors. In 2020, we expect to exceed two billion in sales, which equates to a further doubling in just five years,” says Karl Haupt, Head of the Advanced Driver Assistance Systems business unit. “Much of this sales growth is driven by Japanese manufacturers. But we still see strong growth potential in China, and with Chinese OEMs. We expect to achieve around one billion in sales with Asian OEMs by 2018.”

Strengthening development capacities in Japan, India

Continental is particularly focusing on strengthening the development of local capacities through the transfer of increased responsibility, competence and know-how. In Japan alone, the number of development engineers has quadrupled in the past three years. All Japanese manufacturers are also directly managed from Japan.

At the beginning of this year, the Toyota Motor Corporation bestowed its Annual Technology & Development Award on the ADAS business unit for the second time, this time honoring the contribution of the Multi Function Camera with Lidar (MFL) to Toyota’s active safety package, “Toyota Safety Sense C”. More than ten Toyota models all over the world are meanwhile equipped with the Continental sensor module.

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In addition to Japan, the ADAS business unit also focuses on India as a location for its engineering activities in Asia. Here the business unit develops software and algorithms for advanced driver assistance systems. “The strong growth trend is continuing unabated in Asia and more than 1,000 of our people work here, 70 per cent of whom are in Engineering. This underlines the importance of the Asian market and the Asian manufacturers,” says Norbert Hammerschmidt, Head of the Advanced Driver Assistance Systems business unit in Asia. “For our latest technologies and innovations, we can draw from a huge pool of skilled talent and offer excellent services worldwide.”

Increase in production capacity for radar sensors

One core element of Continental’s strategy is a high degree of localization – “in the market for the market.” To meet the growing demand of Asian vehicle manufacturers for surrounding sensors, production of short-range radar sensors was launched at Calamba in the Philippines towards the end of 2015. Short-range radar sensors perform functions like Blind Spot Detection, Lane Change Assist and Rear Cross Traffic Assist. Drivers include legal requirements, but the customers’ demands for more safety and comfort are also of key importance.

Additionally, the production of the Multi Function Camera with Lidar will be launched in autumn this year. It is the plan to produce over 10 million short range radar sensors and a million camera systems at Calamba in the future.

In China, the number of vehicles is keeping pace with the rapid growth of the Chinese economy. Increased focus is also being placed on vehicle safety, which is one of the most important factors in the purchasing decisions of Chinese consumers. To address this trend and strengthen Continental’s Advanced Driver Assistance Systems presence in China a new management position was created and Neil Tang announced as the first Head of ADAS business unit China. With a Head of ADAS Engineering China another new position was also filled to further expand the local presence and to supervise series projects together with international and Chinese vehicle manufacturers.

Yet another milestone is the launch of long-range radar sensor production for various customers, planned for 2018 in Shanghai. The goal is to produce several million sensors annually.

On the road to Vision Zero

The key to “zero accidents” is the development from assisted to automated driving. Advanced driver assistance systems are already helping prevent accidents, or at the very least to mitigate their consequences. They help the driver to perform his driving tasks and assist him in the safe and efficient operation of the vehicle.

When the vehicle is in the automated driving mode, the results achieved by these increasingly intelligent surrounding sensors show that the vehicle reacts faster than a human driver to traffic situations, that it totally ignores potential distractions and that it drives with more foresight than a human being ever could.

Continental develops the necessary components and systems for automated driving all over the world, in Europe and the US, in Japan and in China, and 2014 saw Continental receive permission to test its automated driving systems on public roads in Japan for the first time. The company has an own test center for development and testing in Mombetsu on Hokkaido Island in northern Japan. With the set-up of another vehicle for China, Continental recently increased its global testing and development capabilities yet again. The Chinese team is responsible for the development of components and algorithms as well as the validation of automated driving systems and functions in China locally.

Continental develops intelligent technologies for transporting people and their goods. As a reliable partner, the international automotive supplier, tire manufacturer and industrial partner provides sustainable, safe, comfortable, individual and affordable solutions. In 2015, the corporation generated sales of €39.2 billion with its five divisions – Chassis & Safety, Interior, Powertrain, Tire and ContiTech. Continental currently employs approximately 215,000 people in 55 countries.

The Chassis & Safety division develops and produces integrated active and passive driving safety technologies as well as products that support vehicle dynamics. The product portfolio ranges from electronic and hydraulic brake and chassis control systems to sensors, advanced driver assistance systems, airbag electronics and sensorics as well as electronic air suspension systems all the way to windscreen washer systems and headlight cleaning nozzles.

The focus is on a high level of system competence and the networking of individual components. Thus products and system functions are developed along the SensePlanAct chain of effects. They form the foundation for automated driving. Chassis & Safety employs more than 40,000 people worldwide and generated sales of approximately €8.4 billion in 2015.