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Ambitious Plans for Automakers in the Powertrain Industry

2019-01-09 10:40 Wednesday

The powertrain industry is undergoing radical change, driven by new and unprecedented challenges. The need for reduced dependence on fossil fuels and a reduced carbon footprint has driving advances in vehicle technology, which has in turn effected the powertrain market.

According to the latest projections, the global market for powertrain is expected to grow at a CAGR of 0.8% over the next five years to reach$2.53 billion  in 2023. Due to a lack of charging infrastructure and the development of easy-to-integrate hybrid powertrain technology, hybrid vehicles are likely to dominate the future.

The European Competitiveness in Commercial Hybrid and AutoMotive Powertrain project was initiated in 2015 by a by 25-strong consortium, including FIAT, Renault, Daimler, Iveco, MAN and DAF Trucks, and has been working on solutions to improve powertrain efficiency by up to 20%, reduce powertrain weight by up to 20%, and make hybrid vehicles more cost-effective. So far, the project has achieved a standard framework for hybrid electric drivetrain components and auxiliaries for commercial vehicles and optimized drivelines.

In addition, German auto parts supplier Continental has solicited investment for a planned 2019 IPO of its Powertrain division.


Continental said that it will list its Powertrain unit as early as mid-2019 as part of a broader restructuring in response to trends in the auto industry favoring electric and self-driving technologies. The restructuring separates Continental's autonomous and connected vehicle technology business from its diesel and petrol engine technology division,  breaking Continental up into three divisions: Continental Rubber, Continental Automotive and Powertrain.

A few months earlier, rival auto suppliers Autoliv and Honeywell legally separated their combustion engine assets from other activities. The structural overhaul follows a broader trend by conglomerates including Thyssenkrupp and General Electric, which involves slimming down operations.

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