Osram Continental joint venture underway
The Osram Continental GmbH joint venture, set up by Continental and Osram, is complete. Following successful negotiations and merger control approvals, the joint venture launched as planned in the second half of 2018.
Osram Continental will initially employ around 1500 people at 16 locations worldwide, basing its headquarters in Munich, Germany. The plan is to soon move the headquarters to Garching, Germany. Continental and Osram each hold a 50% stake in the joint venture, which is fully consolidated in the case of Osram.
Osram Continental is planning growth rates of up to double digits annually for the next five years. This is based on strong growth in the market for LED, as well as laser-based lighting modules, sensor solutions, and associated electronics. The first products to be developed by the joint venture are expected to be ready for series production by 2021.
Dirk Linzmeier, CEO of Osram Continental, already has high expectations for the start of the joint venture.
“Over the past few months, we have laid down a number of markers, which will allow us to create a new company that will rethink the future of automotive lighting. Building on these strong roots, Osram Continental will enable us to provide a significant boost to the market,” Linzmeier said.
“By launching our joint venture, we are generating confidence that the market for intelligent automotive lighting will continue to grow and be viable. Our team is comprised of management staff and experts from both companies, and we are committed to increasing the speed of innovation, as well as efficiency and integration of new technology products,” said Harald Renner, CFO and member of the general management of Osram Continental GmbH. “I am really looking forward to working with our new colleagues on developing exciting products.”
The market for vehicle lighting in the automotive industry is currently in a period of transition as it moves toward semiconductor-based lighting technologies. Because of this, Continental and Osram are combining their strengths in software and electronics to develop state-of-the-art headlamp modules and solutions for tail and interior lighting for automotive manufacturers and suppliers.
The joint venture will use increasing digitalization on an ongoing basis in its vehicle lighting solutions to produce intelligent lighting functions for vehicles from one source. With its approach to combining lighting and intelligent electronics, OSRAM Continental is also striving to ensure the market penetration of LED technology in all vehicle segments.
As a result, the company says it is not only using software-based solutions to create a configurable light distribution system, it is also developing intelligent lighting functions for applications such as anti-glare dipped headlamps and high-beam headlamps. Using data from the navigation system and sensors, vehicles equipped with these solutions will ultimately be able to project warning messages for other drivers.