Continental AG to expand production in Russia

Continental AG, Europe’s second largest car-parts maker, plans to invest more than €6 million (US$) in the growing Russian automotive market. The company plans to construct a new production line at its existing Kaluga electronics plant near Moscow. The site produces engine control units and manufactures components for use in fuel supply and injection systems. “There is an increasing demand in the emerging markets for high-performance and economical electronically controlled engine systems. Tighter emissions requirements are partly behind this increased demand’, said Gerhard Bohm, head of the Engine Systems Business Unit in Continental’s Powertrain Division. The additional production line will boost capacity to one million engine control units annually. The Russian vehicle market is one of the fastest-growing markets in the world. Whereas at present, about 230 in every 1,000 Russians own a car, this figure will increase by more than 50% to 375 by the end of the decade. “We’re expecting sales of new cars to reach 3.5 million by 2015 and as high as 3.75 million by 2020,” said Christian Kogl, head of Continental Powertrain Russia and CEO of Continental Automotive Systems Rus. (July 6, 2011)