Prof. Dr. Christian von Albrichsfeld, © Continental AG, All rights reserved04.06.20131 Continental...

Prof. Dr. Christian von Albrichsfeld, © Continental AG, All rights reserved04.06.20131

Continental Automotive Romania

Piata auto locala, intre investitii si scaderiContinental as example for an investor in Romania

Prof. Dr. Christian v. Albrichsfeld.Bucuresti, 4.6.2013



Agenda

Continental Worldwide1.

Continental in Romania2.

Why Romania: Advantages and Specifics in Romania 3.



Continental Corporation291 Locations in 46 Countries, ~170.000 employees, end 2012

Status: January 2013*Headquarters in Hanover

Europe

South AmericaArgentinaBrazilChileEcuador

AsiaChinaIndia

IndonesiaJapan

MalaysiaPhilippinesSingapore

South KoreaSri Lanka

TaiwanThailand

AfricaRepublic of South Africa

TunisiaAustralia

AustriaBelgiumDenmarkFinlandFranceGermany*

GreeceIrelandItalyNetherlandsNorway

Czech RepublicHungaryKazakhstanPolandRomania

RussiaSerbiaSlovakiaTurkey

North AmericaCanadaMexicoUSA

PortugalSpainSwedenSwitzerlandUnited Kingdom

Since 1871

Sales of €32.7 billion

One of top 5 automotive supplier



We Shape the Megatrends in the Automotive Industry Safety, Environment, Information, Affordable cars

Doing more.

For safe mobility.

Doing more.

For intelligent driving.Doing more.

For global mobility.

Doing more.

For clean power.



Continental in Romania end December 201110 locations, ~ 10,500 Employees, ~ 575 Mio € Investment

Continental Automotive HeadcountSibiu

Engineering Center & Electronic Manufacturing

Timisoara, former SV


Iasi, former SV

Engineering Center

Brasov

Electromechanical Manufacturing

Total engineering: ~ 3,000 Total Manufacturing: ~ 2,200 Total Automotive: ~ 5,200

TiresTimisoara Division – Passenger and Light Truck Tires, Replacement and OE

Slatina – Joint Venture Continental & PirelliProduction: Steelcord

SacalazEast European Tire Distribution Center

ContitechTimisoara Power Transmission beltsContitech Fluid – Air Conditioning Components + New Division: Power Steering & Hydraulic Systems

Carei - Contitech Phoenix Division: Coolant hoses and hose modules

Nadab - Contitech Thermopol Products: Colant hoses and hose modules

Total employees: ~ 10,500

1

2

3

5

6

7

8

9

4

Hungary

Serbia

Ukraine

Moldavia

BlackSea

Bulgaria5

30

km

735 km

1

3

5

6

78

9

10

Bucharest

Sibiu

Iaşi

Timişoara

•Chişinau

Carei

Arad

Slatina

2 4Braşov

6 legal entities in 10 locations.

Continental Top employer Top investor Top products & technologies Good citizen of the community 10

* Including leased variable employees



Continental in Romania end December 2012,10 locations, ~ 11,850 Employees, ~ 700 Mio € Investment

Continental Automotive HeadcountSibiu


Timisoara, former SV


Iasi, former SV

Engineering Center

Brasov

Electromechanical Manufacturing

Total engineering: ~ 3,500 Total Manufacturing: ~ 2,550 Total Automotive: ~ 6,050

TiresTimisoara Division – Passenger and Light Truck Tires, Replacement and OE

Slatina – Joint Venture Continental & PirelliProduction: Steelcord

SacalazEast European Tire Distribution Center

ContitechTimisoara Power Transmission beltsContitech Fluid – Air Conditioning Components + New Division: Power Steering & Hydraulic Systems

Carei - Contitech PhoenixDivision: Coolant hoses and hose modules

Nadab - Contitech Thermopol Products: Colant hoses and hose modules

Total employees: ~ 11,850

1

2

3

5

6

7

8

9

10

4

Hungary

Serbia

Ukraine

Moldavia

BlackSea

Bulgaria5

30

km

735 km

1

3

5

6

78

9

10

Bucharest

Sibiu

Iaşi

Timişoara

•Chişinau

Carei

Arad

Slatina

2 4Braşov

* Including leased variable employees

6 legal entities in 10 locations.

Continental Top employer Top investor Top products & technologies Good citizen of the community



1 Oracle 2 Google 3 Microsoft 4 Continental 5 OMV Petrom 6 IBM 7 BCR 8 Orange 9 P&G 10 Coca-Cola 11 Vodafone 12 BRD 13 HP 14Renault Romania15 KPMG

National visibility: Continental – Top 1 Automotive Supplier

* all legal entities

April 2013(Catalyst Survey):4th as „most desired employer“

June 2012 (ZF):1st as „Automotive Supplier“

Student Survey plan actual



Product Portfolio Continental Rubber Group Romania Plant Production

Tires Division(Timisoara)

Passenger Tires

Light Truck Tires

ContiTech Division Power Transmission

(Timisoara)

V-Belts

Timing Belts

Multi-Rib Belts

Agriculture Belts

ContiTech Division Fluid Technology

(Timisoara + Carei + Nadab)

Air Conditioning - Lines

Power Steering Lines

Power Train Lines

Hoses: - Heating Cooling

- Turbocharger

- Silicon

13” – 18” tires OE & Replacement

16” – 17” tires OE & Replacement



Product Portfolio Continental Automotive Group Romania Plant Production

Chassis & Safety (Timisoara + Sibiu)

Passive Safety & ADAS

Chassis Components

Powertrain(Brasov + Sibiu)

Fuel Supply

Transmission

Interior(Timisoara + Sibiu)

Instrumentation & Driver HMI

Body & Security

Airbag Control Units

SPEED Platform

Airbag Control Units

Electronic Parking Brakes

Electronic Parking Brakes

Fuel Supply Pump

Transmission Control Units

Central Displays

Instrument Cluster

Body Control Module

Underhood Switching Module



Product Portfolio Continental Automotive Group Romania Activities R&D (3500 employees in R&D)

Chassis & Safety

Electronic Brake Systems

Passive Safety & ADAS

Chassis Components

Powertrain

Engine Systems

Transmission

Hybrid Electric Vehicle

Interior

Instrumentation & Driver HMI

Infotainment & Connectivity

Body & Security

Commercial Vehicles &

Aftermarket

Airbag Control

Unit

Electronic Hydraulic Combi Brake (EHC) ABS/ESC

Closing Velocity Sensor

ClipSat – Pressure Satellite

Camera Sensor Family

Steering System

Force Feedback Pedal

Air Spring Damper

Injectors ECU

HAP 511, 542, 728

T76DQ:200

DC-DC ConvertorDriver for Electric Engine

Battery Controller

Instrument Cluster Secondary Display

Head-up Display

Connected Radio Multimedia System

Body Control Unit

Intelligent Battery Sensor

Key Tire Guard Wheel Unit

Instrumentation & HMI TachographOnboard

Collection Unit

ECU Gasoline Engine



Continental in Romania – 12 Years of Progress and Achievement

Continental Automotive Products SRL starts the green field location in Timisoara

ContiTech Fluid Automotive Romania SRL starts production

in Carei

Continental Automotive Romania SRL (former Siemens VDO) starts the green field in Timisoara

Continental Automotive Romania SRL (former Siemens VDO) opens an R&D location in Iasi and a plant in Timisoara

Continental acquires Siemens VDO Automotive AG and advances to among the top five suppliers in the automotive industry worldwide, at the same time boosting its market position in Europe, North America and Asia.

2000

20012006

2007

Continental Automotive Systems SRL opens the

plant in Sibiu

2004

ContiTech Romania S.R.L

opens the plant in Timisoara

Continental Automotive Romania SRL (former Siemens VDO) opens a plant in Brasov

2010/11

Thermopol Romania SRL

opens the plant in Nadab



Why Romania?

Good Cost / Performance ratio

Good Qualification (University Education)

Great Language Skills (German, English, French, …)

Cultural and Geografic Proximity to Middle and Westeurope

Good support from local authorities

Flat-Tax and Subsidies for Investments

EU Legislative System

Continental found in the last 12 yearsgood Business environment for growth(export-oriented company)

However …

Ungarn

Serbien

Ukraine

Moldavien

BlackSea

Bulgarien

530

km

735 km

1.5 hours drive until reaching the

Highway

Bukarest

SibiuHermannstadt

Iaşi

TemeschburgTimişoara

•ChişinauClujKlausenburg

Arad

Craiova

BraşovKronstadt

Satu-MareSathmar

PloiestiPitesti

Konstanza

Belgrad



Foreign Direct Investments in Romania

Grafik entnommen aus: AHK-Broschüre, ‘Rumänien Leistungsstarker Standort‘ 2013Source: BNR

Smallest value in theLast 10 years

Romania not to loosecompetitive advantages !



Human ResourcesEducation Level

Worker

Vocational schools (scoala profesionala) not existing in practice; (education not up-to-date)(Continental started pilot classes according to New law/German model)

Educated „master craftsmen“ (Meister/mester) and technician in practice not existent

Good knowledge of foreign languages also at workers (some are university graduates of non-technical faculties)

University level

High level of education, but also „volume-oriented“

Theoretical education, more teaching of knowledge, less problem-solving competence

Need of additional trainings inside the companies



Human Resources Labour Market

Still competitive labour costs

Big towns are crowded with companies (e.g. Timisoara, Sibiu, Brasov, Iasi)

Difficult to find good employees

Experienced Employees to be hired from other companies „War of Talents“

Dynamic Labour Market with high salary increases

Difficult to retain people in competition with (North-) West-Europe (e.g. Germany)especially well educated key players

Not just salaries

Up to date Educational system

Stable and secure health/social system

Live standard in cities



Infrastructure / Legal / Subsidies

Infrastructure

Highways from major cities to western border still not existing (for trucks almost 1 day from Brasov to Hungarian border/ European Highway net)

Availability of office space or construction land varies locally

Legal / Tax System

Stable fiscal system required and legal certainty necessary; changes “over night” planning needs to be possible for 5 years in advance

EU-legal system (but high Bureaucracy)

Subsidies

Legislation existing and tendencies visible for improvementbut in detail the legislation creates even more bureaucracy (even more than European Fonds) instead of helping

Direct subsidies for creation of jobs and investments would help

Commitment Culture

Authorities need to keep commitments and promises (independent of party changes)

Investors currently choose the countries based on reliability



Quintessence

Romania is still interesting as investment country for autmotive industry

Bound in in European Union

Competitive work force existing

Important where to invest (competition with existing companies)

Implication of State and Authorities needs to be increased

Stability/Predictability of legal and tax system

Bureaucracy

Subsidies

Commitment culture

Keeping of work force by improving live quality (health, education, social system)



140 Years Continental1871 – 2011

Mulţumesc mult pentru atenţia dumneavoastra!Thank you for your attention!

Prof. Dr. Christian von Albrichsfeld, © Continental AG, All rights reserved04.06.20131 Continental...

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Transcript of Prof. Dr. Christian von Albrichsfeld, © Continental AG, All rights reserved04.06.20131 Continental...