National Press Release

- ZF develops and produces the drive system and is responsible for system integration

- Continental supplies the energy accumulator and electronics

- Volume production scheduled for 2011

AUBURN HILLS, Mich., May 6 /PRNewswire/ -- ZF and Continental have finalized a strategic alliance to develop and produce hybrid drives for commercial vehicles. ZF, as the systems supplier, will provide the parallel hybrid transmission, while Continental will provide the lithium-ion battery accumulator, and system electronics. In addition to pure hybrid technology (transmission, electric motor, and power electronics), ZF is responsible for system integration and controls.

"The parallel hybrid concept can be implemented by utilizing existing vehicle driveline resources," explained Rolf Lutz, Group Executive of the Commercial Vehicle and Special Driveline Technology division, ZF.

"With the latest generation of powerful lithium-ion batteries, we create the very prerequisites for electrically assisted driving of hybrid buses and trucks," added Jorg Grotendorst, head of the Business Unit Hybrid Electric Vehicles for the Powertrain Division at Continental. "This allows for additional CO2 reductions in city driving."

Volume production scheduled for 2011

The cooperation stipulates that Continental -- already using Li-ion batteries for passenger car volume production applications -- further develops the battery technology with ZF, with volume production scheduled for 2011. The energy-accumulating systems are developed by Continental in Berlin, Germany and by ZF in Friedrichshafen, Germany.

Plans include an energy-accumulating system that can be flexibly integrated in different vehicle concepts to provide an output of 60 kilowatts -- more powerful than those used in the passenger car sector. This system will be integrated in hybrid drives for light trucks used primarily for deliveries within urban areas. The hybrid system is set up to support the combustion engine during vehicle start-up and at lower speeds (boosting).

Additionally, two energy-accumulating components are currently planned for city bus applications; they will provide more than 120 kilowatts total since these vehicles take-off in the pure electrical driving mode. Overall plans include five unique hybrid systems.

Flexible hybrid concept for use in commercial vehicles

In this new commercial system, ZF prefers the concept of a parallel hybrid where the electric motor and the combustion engine can be actuated in parallel via the transmission, and, if needed, separated by a clutch. The flexible design can be installed in both mild and full hybrids, which use the entire range of hybrid functions: the start-stop function, regeneration of braking energy (recuperation), boosting, and electric starting. In this context, vehicles equipped with full hybrid systems can achieve a 30 percent fuel economy improvement.

In addition the system does not require additional installation space. The hybrid variants based on the parallel hybrid concept transmission, can be integrated into the existing driveline of current ZF manual or automatic transmissions. The additional system weight due to wiring, battery, and the cooling system is offset by downsizing the combustion engine, and by omitting the 24 V battery, and starter.

As the electric motor also acts as a source for additional power consumption during generator operation, this hybrid transmission system is also a great option for municipal vehicles. In current applications, the Power Take Off (PTO) unit permanently requires fuel because it is mechanically connected to the combustion engine. The powerful generator and the hybrid battery in this new system allow for the use of electric PTOs that consume fuel only while being operated (power-on-demand).

ZF is one of the world's leading automotive industry suppliers specializing in driveline and chassis technologies. With a workforce of 63,000 employees, the company operates 125 plants in 26 countries. To sustain its success with innovative products, ZF invests at least 5 percent of its annual revenues (about euro 700 million from an annual total of euro 12.5 billion in 2008) in research and development.

With sales exceeding euro 24 billion in 2008, the Continental Corporation is one of the top automotive suppliers worldwide. As a supplier of brake systems, systems and components for the powertrain and chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers, the corporation contributes towards enhanced driving safety and protection of the global climate. Continental is also a competent partner in networked automobile communication. The corporation currently employs approximately 133,000 at nearly 190 locations in 35 countries.

The Powertrain Division integrates innovative and efficient system solutions for vehicle powertrains within the automotive supplier Continental AG. These systems increase performance and driving comfort while at the same time lowering consumption and emissions. As a partner of the automotive industry, the division develops and produces a comprehensive range of products at more than 60 sites around the world. These include gasoline and diesel injection systems, engine management, transmission control and fuel supply systems as well as components and systems for hybrid drives. The division generated revenue in excess of euro 4 billion in 2008 and currently has around 24,000 employees.

For photo material and further press information please visit: www.zf.com

Online media databases: www.mediacenter.continental-corporation.com

SOURCE Continental