Press Release
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Affordable Cars in Focus: Continental Brings Safety,
Convenient Controls And Fuel Economy To All
Markets
Automotive Group of Continental develops global solutions for the fast-growing
international market for affordable cars. Demand is rising for smaller, low-cost cars.
Not just in Asia and Latin America, but increasingly also in established industrialized
nations.
Frankfurt am Main/Regensburg, Germany, September 9, 2009. The global automotive
market is changing rapidly: within the next six years, the share of total production accounted
for by low-cost vehicles is set to climb to around 20 percent. Continental’s Automotive Group
has responded with a comprehensive, scalable product portfolio to satisfy the growing
market for small and compact cars. Continental is an international automotive supplier that
develops and manufactures components and systems which deliver high quality and safety
at the lowest possible prices. "Affordable cars are not of a lower quality with only the most
basic of components, they are vehicles that customers can afford. They are fitted with
minimalist, market-specific functions based on state-of-the-art technology. They are tailored
to customers and their regional expectations," said Helmut Matschi, President of the Interior
Division and member of the Executive Board of Continental. "Affordability is not only relevant
for China and India, it is now also extremely important for manufacturers and suppliers in the
USA and Europe." Continental offers cost-effective and flexible product solutions through its
strong presence in all automotive markets, its integrated development networks, local
production sites and modular approach to component and system integration. Although these
solutions are adjusted entirely to the demands and requirements of customers and markets,
they make no compromises when it comes to safety, sustainability or quality of information.
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Contact:
Nicole Geissler, +49 (0)69 7603 8492
-2Affordable cars: one term with varying definitions
Affordable is the term that has become established within the automotive industry. But what
does it mean exactly? Prosperity gaps and the level of car ownership in certain parts of the
world entail varying definitions of the term "affordable car". Vehicles fitting this description in
India sell to end customers for the equivalent of just under €2,000, while the lower price
threshold in China and eastern Europe is around double this amount. Higher expectations in
western Europe and Japan set the price limit for an "affordable" car with standard features at
€10,000. For Continental, the term also covers vehicles in the small car and compact class,
raising the price range to €18,000. In Japan, one in three new cars is registered as a "Kei".
These small, tax-privileged vehicles with a 660cc engine are primarily bought as second cars
or by people with low disposable incomes. A Kei car is considered affordable if it costs less
than 1.5 million yen, around €11,000.
The challenge for automotive engineers: high-tech at low-cost
Affordable cars require highly efficient technology that is tailored to the customer and
regional expectations. Potential market leaders have to adjust their products and production
processes accordingly. The utilization of engineering capacities in the regions also has a part
to play, as does the localization of the entire value chain: regional marketing and
development, low-cost purchasing at local suppliers and a lower degree of automation in
production are of crucial importance. This approach enables Continental to react quickly and
flexibly to the varying requirements of vehicle manufacturers and markets.
But there also has to be a rethink of how products are defined and developed in Europe as
well. What is required are shorter development cycles and an ability to supply the market
with high-quality products in large volumes. Suppliers who want to tap into this strong area of
growth have to adjust to new expectations in terms of both technology and price.
In contrast to the "downsizing" approach, in which existing products are scaled down for
affordable cars, Continental is increasingly designing from the "bottom up". The Body
Controller is a perfect example. Under its new name of Basic Function Controller, this central
control unit has become the focal point of an intelligent electronic system for the Asian and
global markets. It was developed from scratch and in a completely different way to its
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Contact:
Nicole Geissler, +49 (0)69 7603 8492
-3conventional counterparts for the European market. Any features without any directly
discernible function for the customer were reviewed for their necessity and avoided as
appropriate.
Continental does not only develop cost-optimized products, it also offers the suitable and
innovative system solutions. Engineers everywhere have to work together to turn these
products and solutions into reality, combining local knowledge with the experience and
expertise in the established markets. "Networking and the sharing of know-how among
development engineers in the individual regions will play a crucial role in the future," says Dr.
Ralf Cramer, President of the Chassis & Safety Division and member of the Executive Board
of Continental.
Driving forward global safety: no compromise in quality and safety
The SPEED (Safety Platform for Efficient & Economical Design) airbag control unit,
developed by Continental's Chassis & Safety Division, has a modular design that can easily
be adapted to the requirements of vehicle manufacturers. The multi-level concept meets the
demands of all global markets and allows even entry-level models to be fitted with a highperformance airbag system.
The housing for the Airbag Control Unit takes the form of a metal base plate covered by a
plastic lid and can be flexibly mounted with various connectors. This in turn makes it
extremely simple to adapt the electronics to the vehicle. The basic version "SPEED S" is
fitted to affordable models in the small car category and is designed to control the front
airbags, but side airbag control can also be added as an optional extra. The S module can
control as many as twelve different components, including the airbags and the seat-belt pretensioners. SPEED offers great flexibility as a result, with the option of precisely tailoring the
airbag control unit to the manufacturer's requirements, while largely benefiting from an
identically engineered design, standard interfaces and mass-produced components. Aside
from the cost benefits, this also translates into short development periods thanks to the rapid
integration of the technology. The next level M and L versions can control up to 30
components. Rollover protection, which detects when the vehicle is about to overturn, can
also be integrated as a basic enhancement.
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Contact:
Nicole Geissler, +49 (0)69 7603 8492
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Smaller, lighter – but also attractively priced. These were the challenges that had to be met
in developing a new ABS for the industrializing markets. But that's not all: the new system
had to be least as good as the ABS MK 70 that is currently in series production. Smaller
vehicles and therefore less installation space made the reduction in size necessary, but at
the same time, the lower engine output and lower overall vehicle weight in these markets
also allowed a downsizing of the ABS unit, leading to a reduction in material costs. The next
generation MK 100®, which is currently in preproduction, once again cuts down dramatically
on size and weight compared to its MK 70 predecessor.
The Asian Base Actuation (ABA) brake actuation mechanism also incorporates a number of
detailed solutions for reducing costs. Given the lower expectations of the market, the vacuum
brake booster can be manufactured with a reduced material strength and thinner membrane.
It also costs less to manufacture a dual master cylinder piston in steel than it is in aluminum.
Calipers for the emerging markets were developed on the basis of the brake caliper module.
The differing expectations of customers in Asia can be exploited to reduce costs; perceived
annoyances such as noisy brakes have to be rectified with great effort for the European
market but are not considered a problem in Asia. What matters is that they work.
Buyers of affordable compacts and small cars should also be able to benefit from driver
assistance systems that make the road a safer place. Preventive systems, for example, are
set to become a reality in all vehicle classes following the introduction of a mid-range radar.
The sensor scans the road ahead of the vehicle to a distance of up to 150 meters and warns
of impending rear-end collisions. Continental is working with vehicle manufacturers to
develop lane-changing and speed limit monitoring systems for market launch in the small car
segment from 2011.
Solutions to challenges through tighter environmental legislation
In terms of emissions legislation, the gap between western industrialized countries and the
emerging markets – predominantly Brazil, Russia, India and China (BRIC) – is closing.
Whereas, in the very recent past, China lagged six years behind European regulations, the
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Contact:
Nicole Geissler, +49 (0)69 7603 8492
-5Euro 4 standard now applies in their megacities and in ten major Indian cities as well. A few
weeks ago, for example, the authorities in Kolkata banned cars older than 15 years from the
city in an attempt to combat air pollution. Low emission levels can only be achieved through
state-of-the-art engine management and injection systems.
When developing inexpensive engine management systems, injectors, fuel supply systems,
sensors and actuators, Continental's Powertrain Division can draw not only on its many years
of expertise gained in the established automotive markets but can also exploit the synergy
effects from its Synerject subsidiary. This joint venture company, established over ten years
ago together with the Orbital Engine Company, specializes in engine management systems
for motorcycles, boats and other leisure sports vehicles. Consequently, development work
has incorporated much of the technology used for the small one, two and four-cylinder
engines in this less expensive segment; this technology transfer, especially from motorcycles
to cars, will accelerate in the next few years.
In addition to the innovative 32 bit "Easy-U" engine management system, which can be
flexibly adapted to the relevant vehicle architecture, the total package on offer includes
injectors, air volume and temperature sensors, air intake controls and crankshaft and
camshaft sensors. "Easy-U" was developed at the Continental sites in France and China with
the components manufactured in the city of Changchun. A newly developed transmission
control module, which is marketed under the name "EAST Platform", has also gone into
series production at the Changchun site. The module – a rapid-acting 32 bit controller in a
compact housing – can be used for a wide variety of functions. Its control unit can monitor
and control continuously variable transmissions (CVT), automated manual transmissions
(AMT), double clutch transmissions (DCT) and traditional automatic transmissions.
Stop-start systems that automatically turn off idling engines are particularly important in the
megacities of developing countries where cutting emissions is a pressing issue. Continental's
Interior Division is working on control electronics with simple designs for precisely these
situations.
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Contact:
Nicole Geissler, +49 (0)69 7603 8492
-6Hybrid and electric drive technology is also gaining in importance in emerging markets.
Continental, as a supplier of the complete range of hybrid technology from lithium-ion energy
storage units to power electronics, is playing a significant role in promoting this technology.
Several series production contracts for mild hybrid drives are currently running in China.
Because the markets for affordable cars are so price-sensitive, the challenge here is to
implement high-tech solutions more simply and less expensively, while at the same time
delivering functionality comparable to that found in vehicles for western Europe and North
America. A key role will be played by cars with purely electric drive systems, mainly intended
for use as city runabouts in densely populated areas and for which there is already an
increasing demand.
Cost efficiency through a platform strategy
The Interior Division already offers numerous standard products for vehicles in the lower and
lowest price categories, for example immobilizers, remote control keys, parking assistance
systems, air conditioning control units, radios, and the highly successful instrument clusters.
Many state-of-the-art features, which were previously only installed in high-end vehicles, can
now be found in affordable cars. Examples include wireless data transfer via Bluetooth,
simple navigation using networked radios and keyless access and control systems. All these
and other products are tailored to regional market expectations and local circumstances at
no loss of aesthetic. Product solutions that incorporate a diverse range of functions into one
single system present an opportunity to reduce costs. A combined radio and air conditioning
control unit, for example, designed specifically for affordable vehicles, reduces outlay in both
manufacturing and installation. An all-in-one body computer and instrument cluster achieves
the required cost savings in a similar way but still displays the standard information required
by the driver, such as speed, fuel level and temperature.
With the Basic Function Controller, the Interior Division is embarking on a platform strategy
that is highly cost-effective on the one hand, yet offers the greatest possible flexibility. The
central control electronics system is not adapted individually for each type of vehicle, but is
available in modules. The basic module comprises standard functions such as the control of
the low and high beam headlights, central locking, daytime running lights, windshield wipers
and rear window defroster. The automotive manufacturer can then offer an optional package
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Contact:
Nicole Geissler, +49 (0)69 7603 8492
-7which includes functions such as remote control. The most luxurious module concept
encompasses a number of convenient functions, from the front window lifts to cruise control.
An advantage of this is that the housing and hardware can be manufactured uniformly in
large quantities and the sophisticated software does not have to be adapted to each
individual model.
The success of the Basic Function Controller (BFC) prompted the controller portfolio to be
expanded. Continental now offers several alternatives for those who require more powerful
hardware to control the various body systems. Customers can now add a second BFC to
create a decentralized network that covers identical controllers with varying functions. Rapid
installation of proven technology, lower unit costs due to the high production volume and a
cost-effective onboard electronics system are the advantages of this solution.
With the Advanced Function Controller, Continental has also developed a control unit with
significantly greater scope for functionality and performance. In comparison with the Basic
Function Controller, it offers a 32-bit processor instead of an 8-bit, twice as many CAN and
LIN buses (with gateway function) and far greater functionality – for example with regard to
safety and light technology such as power-operated windows with obstruction sensors.
These make the Advanced Function Controller a one-stop solution for vehicles with a
demanding requirements profile.
Affordable cars: guarantee for global mobility
Affordable cars are gaining in importance all over the world: as entry-level motorized vehicles
in emerging markets, as a low-cost and economical mode of transport in industrialized
economies, or as space-saving runarounds in densely populated conurbations. In the coming
years, the number of cars around the world will grow to well over 942 million, a large
proportion of which will fall into the area of affordability. The small car and compact segment
and the premium segment are subject to exactly the same demands: safety, focus on
accident prevention and protection, fuel economy, clear information about the condition of
the vehicle and simple, convenient controls. Continental Automotive Group is making this
technology available to people around the world through its global network of development
and production sites.
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Contact:
Nicole Geissler, +49 (0)69 7603 8492
-8With sales exceeding €24 billion in 2008, the Continental Corporation is one of the top automotive
suppliers worldwide. As a supplier of brake systems, systems and components for the powertrain and
chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers,
the corporation contributes towards enhanced driving safety and protection of the global climate.
Continental is also a competent partner in networked automobile communication. The corporation
currently employs approximately 130,000 at nearly 190 locations in 35 countries.
The Automotive Group is one of the leading global automotive suppliers. With its three Divisions
Chassis & Safety (5.1 billion €, 27,000 employees), Powertrain (4 billion €, 25,000 employees) and
Interior (5.9 billion €, more than 30,000 employees) it achieved sales of approximately 15 billion € in
2008. The Automotive Group is present in more than 130 locations worldwide. As a partner of the
automotive and commercial vehicle industry, it develops and produces innovative products and
systems for a modern automotive future, in which a car accommodates individual mobility and driving
pleasure to driving safety, environmental responsibility and cost-efficiency.
The Chassis & Safety Division develops and produces electronic and hydraulic brake and chassis
control systems, sensors, driver assistance systems, air bag control systems, washer systems as well
as electronic air suspension systems. Its core competence is the integration of active and passive
driving safety into ContiGuard®. The Powertrain Division integrates innovative and efficient system
solutions for vehicle powertrains.The comprehensive range of products includes gasoline and diesel
injection systems, engine management, transmission control, including sensors and actuators, as well
as fuel-supply systems and components and systems for hybrid drives. Information management is at
the very heart of the Interior Division. The range of products includes instrument clusters and
multifunctional displays, control units, electronic car-entry systems, tire-monitoring systems, radios,
multimedia and navigation systems, climate control systems, telematics solutions as well as cockpit
modules and systems.
Contact for journalists:
Nicole Geißler
External Communications
Continental
Division Chassis & Safety
Guerickestraße 7
60488 Frankfurt am Main
Tel.: +49 69 7603-8492
Fax: +49 69 7603-3945
nicole.geissler@continental-corporation.com
Simone Geldhäuser
External Communications
Continental
Division Powertrain
Siemensstr. 12
93055 Regensburg
Tel.: +49 941 790-61302
Fax: +49 941 790-99 61302
simone.geldhaeuser@continentalcorporation.com
Enno Pflug
External Communications
Continental
Division Interior
Sodener Straße 9
65824 Schwalbach am Taunus
Tel.: +49 6196 87-2515
Fax: +49 6196 8779-2515
enno.pflug@continental-corporation.com
www.continental-automotive.com
www.continental-corporation.com
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Contact:
Nicole Geissler, +49 (0)69 7603 8492