Continental is to open a new Chinese plant in Jinan, Shandong province to supply increasing demand for interior electronics for commercial vehicles, according to an Automotive News report.
The wholly-owned factory is expected to manufacture instrument clusters, body electronics - including fuse and relay boxes - and vehicle control units. It will supply 35% of the commercial vehicle market in China, Francois Schoentgen, Continental's chief of commercial vehicles and aftermarket in China is reported as saying.
To date, Continental has produced components for both commercial and passenger vehicles at its Wuhu plant but has now decided to just make car components in Wuhu, and truck components in Jinan.
"My declared strategy for commercial vehicles is wholly owned plants," Schoentgen was quoted as saying.
The new Jinan plant is located close to commercial vehicle manufacturers Sany Group and Xuyong.
In China, Continental has five factories that produce interior components. Continental Automotive Wuhu Co is the supplier's only joint venture, with the company owning 88.2% of the business.
