Auto Supplier Continental Slams Brakes on Engine Parts Amid Shift to Electric

https://www.wsj.com/articles/auto-parts-giant-continental-slams-brakes-on-engine-parts-amid-shift-
toelectric-11565165087?shareToken=st748ba7cb37364b65a5787a03e5c73201

This article describes the situation of Continental, a German manufacturer of car parts, who faces
reduction in demand for its traditional production of parts for internal combustion engines. As a result,
it decided to reduce its investments in research and production facilities for these parts, and instead
invest more into the development and production of components for electric vehicles. In this situation,
the company performed a long term forecasting of the demand of parts for internal combustion
engines, and realized a decrease of future demand. As input data, it used past monthly or quarterly sales
data of these parts. It ran a time series forecast method, and the output showed a negative trend in
future demand. The company also performed a forecast of demand for components of electric cars
(probably a judgement method because of limited availability of data), and realized that there will be a
strong increase in demand for this group of products. As a result, the company decided to reduce
investments in research and production facilities of parts used in internal combustion engine, and
instead invest in the production of components for electric vehicles.