The Osram Continental GmbH joint venture has successfully completed negotiations and the issuance of merger control approvals. The new company is actively doing business with a focus on intelligent lighting solutions in the automotive market, effective July 2.
Osram Continental, with headquarters in Munich, Germany, will initially employ approximately 1,500 people across 16 locations worldwide. The company plans to move the headquarters to Garching, Germany, within the next year. The joint venture aims to generate annual sales in the mid-triple-digit-million-euro range. Continental and Osram each hold a 50 percent stake in the joint venture, which is fully consolidated through Osram.
Osram Continental is planning for growth rates of up to double digits annually for the next five years. This projection is based on strong growth in the market for LEDs, as well as laser-based lighting modules and solutions, and associated electronics. The initial products from the joint venture are expected to be ready for series production by 2021.
Dirk Linzmeier, CEO of Osram Continental, said he has high expectations for the start of the joint venture: “Over the past few months, we have laid down a number of milestones, allowing us to create a new company that will revolutionize the future of automotive lighting. Building on these fundamentals, Osram Continental will provide a significant boost to the market.”
“By launching our joint venture, we are generating confidence that the market for intelligent automotive lighting will continue to grow and be viable. Furthermore, with our team of experts from both companies, we will increase the efficiency, innovation and integration of our products. I am looking forward to collaborating with our new colleagues to develop exciting, game-changing products,” said Harald Renner, chief financial officer and member of the general management of Osram Continental GmbH.
The market for vehicle lighting in the automotive industry is currently in a period of transition as it moves toward semiconductor-based lighting technologies. As a result, software and electronics are becoming increasingly influential. Through this partnership, Continental and Osram are combining their strengths to develop state-of-the-art headlamp modules and solutions for tail and interior lighting for both automotive manufacturers and suppliers.
Joint Venture Takes Intelligent Automotive Lighting to a New Level
The joint venture will utilize advancements in digitalization to produce intelligent car lighting solutions, allowing multi-functionality from a single source. With its optimized approach, and by combining lighting and intelligent electronics, Osram Continental also strives to ensure market penetration of LED technology in all vehicle segments.
As such, the company says it will not only use software-based solutions to create a configurable light distribution system – for anti-glare dipped headlamps and high-beam headlamps, for example – but it also is developing intelligent lighting functions. Using data from the navigation system and sensors, vehicles equipped with these solutions in the future will, for example, be able to project warning messages for other road users while driving.