(Yicai) April 24 -- China's auto industry is developing toward autonomous driving and preparing the group for the next wave of intelligent connected vehicles, according to the chief executive of the powertrain and chassis division of German car parts supplier Schaeffler Group.

"My expectation is first of all that the Chinese original equipment manufacturers will take a leading position or will keep the leading position in China and going abroad," Matthias Zink said in an interview with Yicai at Schaeffler's 500 square meters exhibition area at the Shanghai Auto Show that opened yesterday.

China did an excellent job achieving electric mobility, and the next wave on the way to autonomous is on full display at the auto show, Zink noted. "All these brake-by-wire, steer-by-wire, all these damping functionalities are preparing the ground for the intelligent connected vehicle. I'm certain China will be the center of that development."

Schaeffler is exhibiting its latest auto innovations at the Shanghai Auto Show, which is being held at the National Exhibition and Convention Center and runs through May 2. The event is the Herzogenaurach-based company's first after merging with peer Vitesco Technologies in the fourth quarter of last year.

"We're having for the first time the common appearance of the former Vitesco portfolio and Schaeffler," Zink said. This is the new Schaeffler with a new product offering, he noted.

"This product offering here, we clustered into solutions for electrified powertrains and solutions for intelligent vehicles," he added. "That's exactly what we showcase here and what we discussed with the automotive industry."

Local Innovation, Adjusting to 'Chinese Speed'

Schaeffler displayed several innovations specifically developed for smart-driving applications at the auto show, with Zink highlighting products that emerged from the company's China operations.

Schaeffler is exhibiting products for variable damping systems, chassis, the comfort of cars, and autonomous driving for the first time, Zink pointed out. It also showed the next innovation, the active suspension for active damping of the chassis's vertical movements, which will first be placed in China, where it was developed and produced, he added.

With 17 production facilities, six research and development centers, and over 2000 R&D persons in China, Schaeffler has embraced the "Chinese speed" through significant local autonomy, according to Zink.

"Those people have maximum empowerment from headquarters," Zink said. "We delegate responsibility, and with it, the teams are allowed and authorized and empowered to adjust to the speed and the expectation of our customers," he added.

This year, Schaeffler will start producing the variable damping system at its factory in Xiangtan, China's central Hunan province, exemplifying its localization strategy.

One More Step Toward AI

At the Shanghai Auto Show, Schaeffler is also exhibiting an expanded range of by-wire products essential for future autonomous vehicles, including a mechatronic rear-wheel steering system, an electrohydraulic steering system, and a two-in-one electro-mechanical braking actuator for brake-by-wire applications. Visitors can try these on a chassis demonstrator featuring a handwheel actuator with force feedback.

"When we are actually undergoing this transformation to electrification, we have these intelligent solutions or the intelligent vehicle solutions, and this is exactly where we come in touch with AI," Zink said, connecting these automotive innovations to broader technological trends.

The advanced variable and fully active damping systems further highlight Schaeffler's expertise in creating the foundation for autonomous driving, Zink noted. The trend of software-defined cars can be seen at the auto show, with Schaeffler co-developing products with artificial intelligence firms, staying close to the AI movement, he pointed out.

What sets Schaeffler apart is the application of AI beyond just product development, according to Zink. "We apply AI in our processes, we apply AI in our factories.

"So if you would come to our campus in Taicang, you would see an AI factory where we did automate the production processes," he said. "It's not all about the products. It's as well about the facilities, the factories, and all the processes we are running."

30 Years of Commitment to China

Schaeffler remains committed to the Chinese market, celebrating its 30th anniversary in China this year, Zink noted. "We're going to continue our journey exactly what we're doing here.

"So we wanna be very close to our customers. We want to generate innovation together with or for our customers," Zink said. "We want to talk to the highest level of these software-defined or AI-driven. And with it, there is a huge field for new ideas and innovations," he pointed out.

"Over the past 30 years, Schaeffler has developed positively in China, not only benefiting from the thriving market but also our long-term trust and support from our customers," noted Dr. Zhang Yilin, CEO of Schaeffler's Chinese arm. "We will continue our strong commitment to the Chinese market and customers."

Schaeffler has around 120,000 employees in more than 250 locations in 55 countries.

Editor: Martin Kadiev