Continental AG, the German car parts supplier, expects growth in its car and van business next year.
“Europe will stagnate at its current relatively low level. The trough should have been reached more or less. Maybe there will still be a decline of 1 to 2 percentage points,” Financial Times Deutschland quoted CEO Elmar Degenhart saying.
The company plans to make up for the loss in Europe, by focusing on Asia and North America markets. Even if the company’s business gets more difficult by the quarter this year, Continental expects to see its sales increase 7% by the end of 2012 to more than 32.5 billion euro.
In August, Continental expanded its overseas auto operations after it bought Parker Hannifin’s automotive air-conditioning business. ContiTech unit announced the acquisition on August 13th, together with the addition of 1,000 employees at five of the US based company plants in Mexico, China, the Czech Republic and South Korea.
Parker Hannifin’s air-conditioning unit provides profits of $140 million annually and manufactures containment components and refrigerant control for light truck and passenger car air conditioning applications. The air-conditioning unit will now be part of ContiTech’s Fluid Technology Business Unit.