Electric cars to keep losing money
Key supplier says pure-electric cars won’t be profitable until at least 2019Building parts for electric cars won’t be profitable for Continental until at least 2019, the German automotive supply giant told a German magazine this week.
Despite investing more than a billion euros into its electric-car business over the last four years, the supplier’s CEO, Emar Degenhart, insisted to WirtschaftsWoche that sales of electric cars would remain small until at least 2025.
“The shift from combustion engines to electro-mobility will only massively take off between 2025 and 2030," he said.
“Sometime between there, the number of combustion engines around the world will peak and then moderately decline," Degenhart told the magazine.
"The necessary development costs are the biggest challenge for our industry," he said.
Despite that, Degenhart said Continental would continue to ramp up its spending on battery electric vehicle (BEV) parts, offsetting the impact on profits through selling on other research and development programs.
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