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:

Comments

Recommended

The BMW M model, as of today, offers their buyers two transmission options: either a six-speed manual or a seven speed dual-clutch automatic. But rumours have been circulating that these...
by - April 24, 2017
Not so long ago, the 2018 Genesis G80 Sport made its debut at the 2016 LA Auto Show. But at that time, it did not have a price yet. And...
by - April 23, 2017
It seems like an increase in price has become a trend for automotive companies lately. Genesis isn’t alone when it comes to this. Subaru had just announced that the 2018...
by - April 23, 2017
Imagine a sports car morphing into an SUV. Chevrolet initially revealed the FNR Concept at the previous Shanghai Auto Show in 2015. For this year, Chevy once again graces the...
by - April 22, 2017
From the moment FCA kicked off with its 3-month-long ad campaign until the day it unveiled the new Dodge Challenger SRT Demon, folks have been guessing what the exact figures...
by - April 22, 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