History

How It All Began

When Karl Benz had his motorcar patented in 1886, he rang in a new era: that of the automobile. A few years later – in October 1902 – Otto Schulze, an engineer in Berlin, filed an extraordinary idea for patent: a speed measuring device for automobiles – the tachometer which was to become the foundation stone for VDO’s success. At the same time, just a few kilometers away, engineers at Siemens-Schuckert-Werke were gathering their first experiences with the automobile: in 1905, they manufactured one of the world’s first electric cars, the “Viktoria”, in Reinickendorf. Three years later, it was superseded by a gasoline-driven model, the “Protos”, which had been awarded the prize for the fastest automobile in the New York to Paris race. A total of 25,000 type “Protos” automobiles were produced at Siemens-Schuckert-Werke over the next 20 years, until production ceased in 1927. Indeed automobile construction was only of marginal relevance to the company’s core competence – electrical engineering. At that time, not electrical but mechanical systems were responsible for ensuring an engine’s dynamics.

The Roaring Twenties

The technical side of instruments of that time was also basically mechanics – as was the VDO tachometer. After World War I had initially delayed production, in the early Twenties it began to flourish. From 1923, the speed measuring devices invented by Otto Schulze were produced at OSA Apparate GmbH in Frankfurt/Main. The company had been founded in 1921 by Adolf Schindling and two partners. Thanks to a merger with the tachometer operations of Deutsche Tachometerwerke GmbH (Deuta), VDO Tachometer AG (Vereinigte Deuta OTA) was founded in 1928. The best-known German automobile, the Beetle, whose serial production included the tachometers as of 1939, also made the abbreviation VDO popular. In the years to come, those three letters established themselves as a symbol for reliable and precise measuring devices worldwide. Twenty years later, annual production exceeded four million. The great success with products like the first fully electric instrument set was the decisive factor for the company’s embarking on international activities. In Melbourne, Australia, construction of the first factory abroad was commenced in 1957. Numerous further locations around the globe were to follow.

Success in the 60s

In the early Sixties, Siemens-Schuckert-Werke, which were to merge with Siemens & Halske and Siemens-Reiniger-Werke in 1966 to become Siemens AG, took up the thread of their former success in the field of automobiles. From Regensburg, they provided the automobile industry with wiring harnesses in 1964, followed later by central locking systems for Opel and Fiat. The years to come were entirely characterized by automotive electrical systems. In 1967, the first centrally controlled childproof safety lock was installed in a Ford model. In 1973, due to the increased use of semiconductors for automotive products, the sector expanded into automotive electronics.

Boom in the Automotive Electronics Business: 1970 – 1990

VDO Adolf Schindling AG – an independent stock company since 1973 – also presented world innovations which gained ground, such as the electric cruise control or the first quartz clock directly installed in the cockpit. VDO products not only became standard equipment in cars but also in aeronautics and shipping. At the same time, the company set standards which still prevail today. The consistent further development of the central information system of 1976 which concentrated warning and safety information in the driver’s field of vision is the head-up display: introduced initially at the IAA Motor Show in 1989, it is now conquering the market as a standard fitment. Innovations of the next few years included onboard computers for Opel, ignition trigger boxes for BMW and alarm systems for Ford. Not until 1989 did the installation and automotive engineering sector develop into an independent business unit: Siemens Automotive.

Ready for the Future

In 1991, Mannesmann AG took over the majority shareholding in VDO Adolf Schindling AG; three years later it took over the complete ownership of the company. In 2001, Mannesmann VDO and Siemens Automotive merged, thus creating one of the leading suppliers for automotive electronics and mechatronics worldwide – Siemens VDO Automotive AG. Since the merger, the successful global player has been able to increase its sales by over 20 percent, reporting more than €10 billion in sales for fiscal 2007. In July, Siemens AG decided to sell Siemens VDO to Continental AG for a price of €11.4 billion. Siemens VDO and its global work force of more than 55,000 employees were integrated into Continental AG in December 2007. The merger positions Continental AG among the top 5 suppliers in the industry ranking.

Historical Milestones at a Glance