DETROIT - Continental Teves North America plans to double its sales to $1.4 billion within three years.
The growth plan stems from new brake and electronic chassis business totaling more than $650 million in annualized sales, said William Kozyra, president of the North American brake and chassis components supplier. He was interviewed after a groundbreaking ceremony last week at the company's planned headquarters in Auburn Hills, Mich.
Continental Teves is a division of Continental AG of Frankfurt, Germany. Its new contracts are four to six years in duration.
They cover parts supply for more than a dozen platforms, including two sport-utilities, a minivan, pickup trucks and a luxury convertible. Kozyra declined to identify his customers.
Continental Teves' business is expanding as its parent consolidates its non-tire North American business in Auburn Hills, not far from DaimlerChrysler, one of its largest customers. The planned $40 million office and research complex eventually will employ 600 people.
Continental Teves is preparing to coordinate its operations with other Continental AG divisions, including General Tire and Conti Tech.
Bringing together the various businesses - tires, brakes, suspension parts, safety technology and chassis - is part of the goal of supplying entire undercarriages.
About 500 employees from scattered Continental AG divisions will be relocated. The company's growth plans probably will require another 100 employees within several years.
Tire maker Continental AG entered the brake and chassis business last year with the $1.9 billion acquisition of the brake and chassis business of ITT Industries Inc.