With the in-depth changes in the automotive industry, in order to cope with the new wave of technology and seek better development, in 218, Continental, a world-renowned technology company, launched the largest organizational restructuring in history, and decided to split its powertrain business and set up a new company to go public independently, which is what we are going to talk about today. Technologies）。
according to reports, weipai technology was officially named in April 219, and Vitesco originated from Latin? "VITA" means "life", and the whole contains the vision of the new company to strive for progress and continue to glow with new vitality and vitality. According to the original plan, the overall split of Weipai Technology will be completed in 22. However, due to the outbreak of Covid-19 epidemic and many uncertainties in the market, Continental decided to postpone this plan. However, after more than a year's preparation, at present, Weipai Technology has the prerequisites for being an independent company. According to the public information of Continental Group, in 221, under the premise of a suitable market, we will implement a complete split listing plan for Weipai Technology.
weipai technology global headquarters? Regensburg (Source: Weipai Technology)
Before its formal independence, as one of the five major business divisions of Continental Group, more than 66% of its core business sales reached the first and second position in the market. In 219, the company's global sales reached 7.9 billion euros, and currently there are more than 5 bases and 4, employees in the world. It can be said that rich technical background and independent capital have been accumulated, so how will the company operate after independence? How to seek new breakthroughs and development? In addition, how will the China market be viewed and laid out? In response to the above problems, recently, Andreas, CEO of Gaspar Automotive and Weipai Technology? Mr. Wolf had an in-depth exchange.
CEO of weipai technology? Andreas? Wolf (Source: Weipai Technology)
After the split, the operation is more agile and flexible
In recent years, with the rapid development of new technologies such as electrification and intelligence and the intensification of market competition, major enterprises have devoted themselves to transformation and upgrading to adapt to the changes and development of the industry under the new situation. Under this circumstance, it is normal for the industry to separate traditional technology from new technology and split its business units to set up independent companies. In addition to Continental, we have seen that in the past three years, Delphi, johnson controls, Honeywell, Autoliv and other parts giants have successively carried out drastic business splits.
for weipai technology to be split and independent, Andreas? Wolf said: "Splitting means that the organizational structure will be more agile and flexible. As far as Weipai Technology is concerned, although it is split from the mainland group with annual sales of 44 billion euros, it is smaller in size, but we are more efficient in decision-making, leaner in process and greatly improved in efficiency, and can respond to market and customer needs more quickly. Especially in terms of foreign cooperation or merger and integration of industry superior resources, the review process will be greatly shortened, which will help us seize market opportunities and explore more market space. In addition, once the market fluctuates, we can also adjust our strategy in time and respond flexibly. It is the so-called' small boat turns around'. "
in addition to responding to market demand and market risks more quickly and flexibly, some analysts believe that the separated company will be more favored by investors and industry customers, especially for those who have made achievements in new technical fields such as electrification, intelligence and networking. It is understood that Weiwei Technology began to be involved in electrification more than ten years ago, with a cumulative investment of over 2 billion euros in the field of electrification. At present, many innovative technologies have been put into mass production, which has paved the way for it to seek more capital and market space after independence.
seeking new breakthroughs and enhancing the value of electric bicycle products
weipai technology has been deeply involved in the field of power systems. at present, the company has three divisions: new energy technology, electronic control, perception and drive. For the future business development of the company, Andreas? Wolf pointed out: "The future development prospect of Weipai technology is closely related to the electrification trend. We expect the annual growth rate of electrification to be as high as 3%, and our goal is to outperform the market average."
nowadays, with the further tightening of global environmental protection regulations, electrification shows an accelerated development trend. According to foreign media reports, the European Transport and environmental agency Transport? & ? Environment（T& E) It is estimated that one tenth of the new cars sold in Europe this year will be pure electric or plug-in hybrid vehicles, and the sales of electric vehicles will be tripled compared with last year. "We see the great potential brought by new energy vehicles, and the different growth rates of bicycle electronic components from two to four times make us look forward to the market." ? Andreas? Wolf said.
the value of electronic components of weipai technology bicycle (source: weipai technology)
therefore, for weipai technology, it will be an important direction to enhance the business growth in the future by increasing electrification technology innovation and enhancing the value of bicycle products. It is understood that in terms of electrification, Weipai technology products have covered all kinds of electrified vehicles. Among them, the highly integrated EMR3 electric drive system has been mass-produced. This product integrates the motor, reducer and power electronics, which not only enhances the power and reduces the weight of the car body, but also reduces the cost of the vehicle.
weipai technology electrification solution (image source: weipai technology)
in addition, in order to further promote the electrification development process, weipai technology continues to exert its strength in electronics and software. It is understood that almost two-thirds of the company's product portfolio is related to electronics. In addition, among the current 7,3 engineers, about 4,3 are engaged in software and system work. For this, Andreas? Wolf explained to Geshi Automobile: "Wepai Technology has always focused on the realization of related functions of power system and electronic system. In the past, the components and electronic devices we provided were around the engine and transmission system. Now, with the development of electrification, the focus of research and development has changed. In order to conform to the market trend, we are also cultivating a talent team that has transformed from machinery to software to system engineers. " In addition, he pointed out that "the optimism about the electrification market redefines the vision of Weifa Company, that is, electrification, intelligence and unbounded, which also closely follows the development trend and pattern of new energy vehicles."
despite the tide of electrification, the traditional internal combustion engine is still the mainstream in the short term as far as the current market development is concerned. Facing the balance between old and new technologies, Andreas? Wolf said that Weipai Technology has systematically sorted out the technologies related to internal combustion engines, so as to know which products' demands are decreasing and which will continue for some time. "A year and a half ago, we sent a clear signal that the business of hydraulic components, fuel injectors and oil pumps will gradually withdraw in the future. Of course, this is a gradual process, which takes 5-1 years to complete, and we will still provide good service for our customers before quitting. The rest of the products will be retained in the business department to make their own contributions to the vision of clean travel. "
New Asia-Pacific R&D center, betting on China market
For China market, Andreas? Wolf said: "In China, we have been deeply involved for 25 years and will continue to invest in the future. The recent groundbreaking of Tianjin R&D Center covering the Asia-Pacific region is a good proof." It is understood that Weipai Technology currently has three large factories and six R&D bases in Changchun, Tianjin and Wuhu in China. In September this year, the company set up a new Asia-Pacific R&D center in Tianjin, focusing on the research and development of electrified powertrains, which is expected to be put into use in the fourth quarter of next year.
weipai technology Tianjin r&d center (source: weipai technology)
it is worth mentioning that with the deepening of localization research and development, some products created by local teams of weipai technology have entered the mass production stage. As mentioned above, the EMR3 electric drive system was mass-produced in China in 219. In addition, for electrification, the electronic and electrical architecture is very critical. Weipai Technology has developed a new generation of powertrain domain controller around the market demand in China, and has achieved mass production. In addition, with the tightening of energy conservation and emission reduction policies in China, Weipai Technology believes that the market prospect of 48V micro-mixing technology is broad, and the 48V air-cooled starter generator developed by the local team will also be mass-produced in the near future.
"China's market growth space is obvious to all, especially in terms of new energy, which leads the world. For this reason, our supporting investment will be continuously improved, and besides the R&D center, the production and sales areas will also be continuously increased. Judging from the orders obtained in China, our investment has gradually achieved results. " ? Andreas? Wolf said.
generally speaking, in the face of independent operation, weipai technology has the corresponding strength and confidence. However, in the complicated and changeable market situation, challenges and risks exist at the same time. Therefore, the split is only the first step of a new journey, and it will take time to verify how high and how far the specific follow-up can climb. In this regard, Gaspar will continue to pay attention.
Attached is the interview record:
●? Overview of weipai technology business
gascar: although it comes from an established company, weipai technology is still a relatively new name to the market. Would you please give an overview of the company first?
Andreas? Wolf: Weipai Technology was originally a powertrain business group under Continental Group, and it has three business divisions, namely, new energy technology, electronic control, perception and drive. The company's products include electronic transmission systems, electronic control units, sensors and actuators, and exhaust gas aftertreatment solutions. Synchronize various solutions involving electrification needs, including 48V system, shaft drive system, battery thermal management system, etc.
gascar: how is the company's business development at present?
Andreas? Wolf: Despite the challenges in the market, the overall business of Weipai Technology is in a stable state of development, with sales reaching 7.9 billion euros in 219, especially in new business areas such as electrification.
gascar: the outbreak of the epidemic in 22 will pose a great challenge to the global supply chain. will weipai technology also be deeply affected? Will the supply chain be rearranged in the future?
Andreas? Wolf: No enterprise can be immune to the epidemic, and we have seen frequent factory closures and layoffs during this period. Not only that, but after the epidemic eased, the recovery of the supply chain also lacked flexibility and the speed was less than expected. There are two main reasons: first, the epidemic has not been eradicated, and parts manufacturers are still facing the problem of staff reduction caused by local epidemics. Second, small-scale suppliers are struggling in the face of financial difficulties. After the epidemic is completely relieved, we need to check whether our supply chain system is flexible and flexible enough, and learn lessons to ensure that we can respond flexibly in the face of emergencies again in the future.
●? The significance and impact of the split on the company
Gaspar: Since 218, Continental has started the restructuring plan and decided to split its powertrain business independently. What is the current progress?
Andreas? Wolf: Splitting means achieving complete independence from office locations, engineering teams, taxation, patents, legal affairs and other fields and staffing. In the past two years, we have been making active preparations for this and have made great progress. However, in view of the outbreak of COVID-19 epidemic and many uncertainties in the market, the Group decided to postpone the split listing plan in April this year. According to the plan, in January 221, independent operation will be ready, and under the premise of suitable market, formal split will be implemented.
gascar: what is the significance of split independence for weipai technology?
Andreas? Wolf: One of the advantages of split listing lies in its independence, and the other lies in its flexibility in business operation. As far as Weipai Technology is concerned, although it is split from the mainland group with annual sales of 44 billion euros, it is smaller in size, but we are more efficient in decision-making, leaner in process and greatly improved in efficiency, and can respond to market and customer needs more quickly.
gascar: what is the company's vision after the split?
Andreas? Wolf: Our vision is electrification, intelligence and unbounded. The future development prospect of weipai technology is closely related to electrification. We expect the annual growth rate of electrification to be as high as 3%, and our goal is to outperform the market average.
gascar: how will the company seek new breakthroughs and development after the split?
Andreas? Wolf: We see great opportunities brought by new energy vehicles, among which the different growth rates of bicycle electronic components from two to four times make us full of expectations for the market, and enhancing the bicycle value of our products will be one of our goals and directions.
●? Company's strategic direction under the general trend of electrification
Geshi Automobile: With the acceleration of electrification development, will Continental Group set foot in solid-state batteries in the future?
Andreas? Wolf: From the company's strategic point of view, we will not enter the production of solid-state batteries. In this field, at present, very mature professional companies have completed all-round layout, which is a relatively saturated market and has little chance for us. However, weipai technology can provide all kinds of key components from battery management to charging to power electronics.
Gaspar: Previously, Weipai Technology announced cooperation with Roma in the field of silicon carbide. What is the background and purpose of this cooperation?
Andreas? Wolf: We think that silicon carbide has broad application prospects, because energy efficiency is a very important indicator. As far as Weipai Technology is concerned, we can supply both traditional IGBT and silicon carbide technology. As for which technology can be the legendary swordsman in the end, it is up to the OEM and the market to judge and decide. Through the cooperation with Roma company, we can give full play to the advantages of silicon carbide and meet the market demand.
Geshi Automobile: Under the new development trend of electrification, the market and technology are changing rapidly. How do you judge to make a reasonable strategic layout?
Andreas? Wolf: First of all, we will investigate and study the uncertainty of the market and the future mainstream trend of technology in advance. Secondly, we always keep close communication with our customers and get effective information on future planning, production and sales and investment direction. At the same time, the superimposed environmental protection laws and regulations are becoming increasingly strict, and the value of bicycle electrification is rising, which makes us have sufficient grasp and confidence in the future development.
gascar: with the change of business focus, what are the company's plans for talent training?
Andreas? Wolf: At present, we have 7,3 engineers, and about 4,3 people are engaged in software and systems. In the past, we provided components and electronic devices around the engine and transmission system. Now, with the development of electrification, the focus of research and development has changed. In order to conform to the market trend, we are recruiting and cultivating talents who are transforming from machinery to software to system engineers.
gascar: under the trend of electrification, what plans will weipai technology make for the traditional internal combustion engine business?
Andreas? Wolf: weipai technology has systematically combed the related technologies of internal combustion engines, so as to know which products are in decline and which will continue for some time. A year and a half ago, we sent a clear signal that the business of hydraulic components, fuel injectors and oil pumps would gradually withdraw. when