German lighting major Osram and Tier 1 supplier Continental have announced their new JV christened ‘Osram Continental’ which commenced global business activities from July 2, 2018, will help the partners to seamlessly integrate light, sensors and electronics to stimulate growth of intelligent lighting solutions for the automotive sector.
The partners state the new JV has successfully completed all negotiations and the issuance of merger control approvals, and the new company has been launched as planned in the second half of 2018.
Initially the company will employ around 1,500 people at 16 locations globally and will be headquartered in Munich, Germany, with plans to shift the headquarters to Garching, Germany in due course. The company aims to generate annual sales in the mid-triple-digit-million-euro range. Continental and Osram each will hold a 50 percent stake in the JV, which is fully consolidated in the case of Osram.
The JV aims to grow in the rates of up to double digits annually for the next five years, which is is based on the strong growth outlook in the market for LED as well as laser-based lighting modules and solutions and associated electronics. The first products to be developed by the JV 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.”
L-R: Harald Renner, CFO, Osram Continental and Dirk Linzmeier, CEO, Osram Continental.
Harald Renner, CFO and member of the general management of Osram Continental, said: “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 comprising of management staff and experts from both companies, we will increase the speed of innovation as well as efficiency and integration. I am really looking forward to working with our new colleagues on developing exciting products.”
According to the company the market for vehicle lighting in the automotive industry is currently in a period of transition as it moves towards semiconductor-based lighting technologies. As a result, software and electronics are becoming increasingly important and influential. Continental and Osram are therefore combining their strengths in each of these areas and developing state-of-the-art headlamp modules and solutions for tail and interior lighting for automotive manufacturers and suppliers.
Intelligent automotive lighting
Automotive lighting on a new level: In addition to anti-glare headlamps, vehicles will be able to project warning messages for other road users.
The JV will utilise increasing digitalisation on an ongoing basis in its vehicle lighting solutions in order to produce intelligent lighting functions for vehicles completely from one source. The company states with its optimised 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 such, the company is not only using software-based solutions to create a configurable light distribution system – for anti-glare dipped headlamps and high beam headlamps, for instance – but it is also developing intelligent lighting functions. Using data from the navigation system and sensors, vehicles equipped with these solutions in future will, for example, be able to project warning messages for other road users while driving.