Continental to focus its investments on Asia in the coming years

Article by Christian A., on October 7, 2011

Asia will be the focus of Continental AG’s investments in the coming years, according to board member Heinz-Gerhard Wente. Asia makes up a third of the total sales of Continental AG, the second-largest autoparts maker in Europe.

In an interview in Bucharest, Wente said that Europe will still be the largest market for Continental but there may be some problems next year due to a potential economic slowdown triggered by the sovereign-debt crisis.

Wente said that there doesn’t seem to be any indication of a "dramatic downturn." Asia makes up 21% of overall sales. Wente said that within the next few years, Asia will have the highest market volumes.

He said that India and China in particular are where most of the investments will go, according to BusinessWeek. He said that the company is uncertain about the effects of the euro crisis on its operations and so it is “quite reserved” about its car output for next year. The rebound in the global auto markets has helped Continental boost its financial situation and post the highest quarterly profit in over three years.

Last April, it got its first credit-rating upgrade from Moody's Investors Service in six years after establishing a 6 billion-euro ($8 billion) loan package to reduce borrowing costs. In addition, Wente said that Continental is aiming to increase investments in Romania and to spend around 40 million euros to raise output of its tire plant in the western city of Timisoara.

Topics: continental, asia

If you liked the article, share on:

Pin It

Comments

Recommended

Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Since 1993, Lexus has produced 4 generations of the Lexus GS, with the GS F amongst its newest member of the family. Unfortunately, rumors are also heating up that the...
by - March 24, 2017
In a leaked image following a presentation held in China, we learned that Czech automobile manufacturer Skoda will soon unveil 2 more new SUVs in China, resulting in a four-model...
by - March 24, 2017
McLaren is said to be designing the next generation of Sports Series, which could include a V6 hybrid among its powertrain options. It was earlier reported that the British automaker...
by - March 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries