Visualisierung der Wertschöpfung bei Continental durch das Symbolbild eines Baumes.
© Continental AG

Our Seven Strategic Dimensions

How we ensure our future viability

1. Value creation – enhancing the value of the corporation on a long-term basis

For us, enhancing the value of the corporation on a long-term basis means sustainable, lasting success while taking into consideration the costs of capital. Our target is a return on capital employed (ROCE) of at least 20 percent.


Since 2015, we achieved or even exceeded this goal.

 

2. Regional sales balance – globally balanced sales distribution

Our strategy targets a globally balanced distribution of sales. We can thus ensure our independence from individual sales markets and balance out economic fluctuations.

We work in the market for the market. We develop and produce a large number of production applications on a local basis. Because we can meet the needs and requirements of our customers most effectively on site.

 

3. Top market position – among the three leading suppliers in all relevant markets

We want to be among the world’s three leading suppliers in terms of customer focus, quality and market share in the long term. This will enable us to plan our future based on a leading position and thereby play a major role in shaping the development of individual sectors.

Our strong presence in the innovative, promising fields of technology in the motor vehicle industry constitutes a key success factor and driver of future development. Around half of our portfolio is dedicated to the world’s 20 fastest growing product segments of the automotive industry. We are among the leading companies in the automotive supplier industry for numerous technologies. The same holds true in our Tire division as it does for the business with carmakers and in other industries in the ContiTech division.

 

4. In the market for the market – high degree of localization

A high degree of localization characterizes our global business model. A large number of product applications are developed and produced locally.

This is how we meet the needs and requirements of our customers most effectively. Our development and production teams worldwide enable us to offer solutions and products for high-quality cars and affordable vehicles, as well as customized industrial applications. The aim is for at least eight out of ten application developments to be achieved locally and for the percentage of local production to be just as high. 

We currently have production locations in 35 of 56 countries in which we are represented.

 

5. Balanced customer portfolio – balance between automotive and other industries

By having a balanced customer portfolio, we want to reduce our dependency on the automotive economy. This is why we are striving to increase business in industries outside of the automotive original equipment sector while at the same time achieving further growth with carmakers.

By 2020, we want to increase the share of sales with end users and industrial customers from other sectors toward a figure of 40 percent. Our Tire and ContiTech activities form the basis for this. Business outside of the automotive original equipment sector allows us to better compensate for delays or accelerations when it comes to the challenges described above.

To achieve this objective, we are pursuing three approaches:

  • In the tire sector, we are investing in additional production capacity geared predominantly toward the end customer business.
  • We are strengthening the automotive end customer business through customer-specific solutions and products.
  • We are increasing sales with industrial customers from sectors outside of the automotive industry both organically and through acquisitions.

 
6. Technological balance – combination of established and pioneering technologies 

Our product portfolio should consist of a profitable and viable combination of established and pioneering technologies.

We set and follow new trends and standards in high-growth markets and market segments. On the established core markets, we ensure that our position as one of the leading automotive suppliers and industrial partners keeps on developing. This allows Continental to be represented and competitive in all phases of the respective product life cycles.

Today, we are one of the leading suppliers when it comes to advanced driver assistance systems, injection systems for low-consumption, supercharged diesel and gasoline engines, electro mobility, keyless access systems and display solutions in vehicle interiors.
 

7. People who motivate – in a culture that inspires

Pioneering solutions can only be created in an environment of inspiration. Continental strives in all divisions and departments to promote a culture of trust and personal responsibility, to foster tolerance of errors as a learning system and to give people freedom to act.

In order to develop our corporate culture, we implement numerous initiatives to promote and shape a working atmosphere that is characterized by trust and mutual respect. This is how we establish an environment that is conducive to new ideas and initiatives as well as an extensive exchange of knowledge and value-adding collaboration. By working in networks without organizational or hierarchical boundaries, we can come up with better solutions more efficiently and pick up on trends and market changes more quickly.