Osram will spin off parts of its automotive lighting business and bring them into the JV. Continental will contribute the related electronic control units. The new company will develop intelligent, digital lighting solutions for the automotive industry, a market that is growing at double-digit percentages, writes business magazine Wirtschaftswoche.
The JV is scheduled to be launched early next year. Its goal is significantly outgrowing the overall market for automotive lighting solutions. With the move, both Osram and Continental face tough challenge from competitor Hella who in the recent time introduced rather advanced smart lighting systems for cars.
Both companies will contribute activities with a sales volume of 200 to 300 million euros each into the joint venture. The company, which is not yet known where it will have its headquarters, will employ about 1,500 workers and engineers.
According to other reports, Osram acknowledged the negotiations about such a JV. However, no agreement has been reached yet.