Continental and Osram have announced that they will be realigning their joint venture for an automotive lighting system. The plan is to end the joint venture and reintegrate into their separate individual businesses. The reason for this is to strengthen the business as the spun of joint venture may not survive in light of the gloomy market during the pandemic. The finality of this decision is subject to approvals coming from Continental's end.
"Osram and Continental are planning to realign their joint venture business in smart automotive lighting systems Osram Continental for the future," the two said in a statement.
The JV was originally established for the development of new lighting solutions. The press release by Osram and Continental reiterates that the development of these lighting solutions will require continuous interplay between electronics, software functionality and modern LED light sources. The two companies also said that regardless of what happens existing projects will come to life.
"In order to bring the resulting innovations and projects into series production on time, the two companies will jointly ensure the continuity of project implementation and the necessary competences for their automotive customers," said the official press release.
The existing customer relationships for the JV will also remain unaffected and all orders which have been placed will be fulfilled.