Osram and Continental plan to return joint venture business to the parent companies
- Osram and Continental plan to remain connected as partners for the automotive industry
- Orders already placed and commitments made will be fulfilled
- Negotiations on returning the business should be completed by the end of the year
Osram and Continental are planning to realign their joint venture business in smart automotive lighting systems Osram Continental for the future. In the coming months, the two parent companies will negotiate on separating of the business and returning it to the respective companies. This move is Osram and Continental’s response to the gloomy market environment, which is being further impacted by the corona crisis and which has not developed as originally anticipated. The decision on this potential return is subject to approval by the relevant bodies at Continental. The companies plan to remain committed to customers in the automotive industry in a future collaborative setup.
The industrial aspects that led to the establishment of the joint venture are still valid. New lighting solutions will continue to need close interplay between electronics, software functionality and modern LED light sources. This was confirmed by the scope of the new business acquired over the past two years. In order to bring the resulting innovations and projects into series production on time, the two companies will jointly ensure the continuity of project implementation and the necessary competences for their automotive customers.
Existing customer relationships will remain unaffected. Orders placed and commitments made will of course be fulfilled. The Osram Continental joint venture employs around 1,500 people at 14 locations worldwide. The joint venture was established in 2018 to promote smart lighting systems for automobiles.
OSRAM, based in Munich, is a leading global high-tech company with a history dating back more than 110 years. Primarily focused on semiconductor -based technologies, our products are used in highly diverse applications ranging from virtual reality to autonomous driving and from smartphones to smart and connected lighting solutions in buildings and cities. OSRAM uses the endless possibilities of light to improve the quality of life for individuals and communities. OSRAM’s innovations enable people all over the world not only to see better, but also to communicate, travel, work and live better. OSRAM has approximately 23,500 employees worldwide as of end of fiscal 2019 (September 30) and generated revenue of about 3.5 billion euros from continuing activities. The company is listed on the stock exchanges in Frankfurt and Munich (ISIN: DE000LED4000; WKN: LED 400; trading symbol: OSR). Additional information can be found at www.osram.com.
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