Future Looking Brighter

With 2006 proving to be a tough year for the North American tyre industry, Continental AG Chief Executive Manfred Wennemer believes that things look set to improve in 2007.

Speaking to media at the North American International Auto Show, he pointed towards declining raw material costs, a potential upswing in replacement demand and reduced operating costs as signs of better times.
“I am convinced 2007 will be a good tyre year” said Wennemer. “We do see there is some demand for the market that was not satisfied in 2006.”

Wennemer believes that the company’s automotive electronics business holds potential. Continental has entered into a strategic alliance with Microsoft Corp. to develop a telematics system, and is working on the Sync system that Ford and Microsoft announced at the auto show. Wennemer added that US regulations requiring electronic stability controls on vehicles will help boost demand for Conti’s products.

Continental currently holds a 20 per cent market share for OE tyres and 5 per cent for replacement tyres in the US. The company is still interested in acquiring Goodyear’s engineered products division, although the four-month Goodyear strike has delayed this sale.