Hannover-based Continental AG is a leading automotive supplier and – according to the company – is “the choice of leading car manufacturers, offering award-winning tyres that deliver responsive braking in all weather conditions.”
Cambrian Tyres has just released the second edition of its 2011 price catalogue. The 170 page catalogue lists the full ranges available from Avon, Bridgestone, Continental, Dunlop, Metzeler, Michelin and Pirelli and reflects recent price increases made by the manufacturers. The price list also features a fitment guide to aid customers in selecting the correct size tyres for all bikes made in the last 35 years.
One of Continental AG’s managers is reportedly under police investigation relating to corruption allegations. Following an article in Germany's Bild newspaper, Bloomberg reported that Frankfurt prosecutor’s office confirmed that such an investigation is underway.
Continental Tyres is seeking to pump up its truck tyre range with two key 17.5-inch tyres in its trailer portfolio: the HTR2 for regional transport and the HTL2 for long-distance transport operations. The tyres are designed and engineered specifically for volume-based trailers and their smaller circumference allows for greater carrying capacity on regional and long-distance work.
Continental’s HTR2 boasts a high load-bearing capacity and “maximum traction” and performance on any road surface. Its special tread design with blocks and narrow grooves is designed to offer “exceptional directional control” while at the same time preventing stones becoming trapped. Furthermore, Continental’s engineers have designed the specific shape of the tread grooves on the HTR2 to for quiet running on more rigorous regional operations.
Despite the fact that both Continental and Michelin reports second quarter/first half pre-tax profits (EBIT) broadly in line with expectations, financial analysts have highlighted the “difference in momentum” between the two firms’ results. According to Morgan Stanley, the intraday spread between the two stocks was 600 basis points when the results were announced on Friday 29 July.
“Although we think Michelin can surprise positively in the second half, in the shorter term Conti should outperform thanks to improving momentum in consensus earnings,” Morgan Stanley’s Edoardo Spina commented, explaining the differential.
HiQ has released a statement arguing for increased attention to be paid to air conditioning systems, following a 15 per cent increase in air-con related problems seen at HiQ branches. The seven out of 10 motorists that HiQ says fail to service their air-con systems regularly – some not at all – could experience decreased levels of fuel efficiency and even asthma-related health problems. The network’s fast fit manager Stuart Carr said that over time, air-con gas gradually depletes which then impacts upon fuel efficiency levels because the engine has to work harder.
Continental is raising its outlook for 2011, based on what it called “a very successful first half-year” that included double-digit growth rates for sales and EBIT. “We had previously forecast sales of more than 28.5 billion euros, but we are now expecting at least 29.5 billion euros. We are also targeting an adjusted EBIT margin of around 10 per cent, slightly more than the good 2010 figure of 9.7 per cent,” said Continental executive board chairman Dr. Elmar Degenhart on Friday 29 July on publishing figures for the first half of the year.
Russian corporation Tatneft, which operates the Nizhnekamsk Solid Steel Chord Tire Factory, reports that a delegation of representatives from Continental AG and Daimler AG visited the company in mid-July with a view to selecting the tyre maker as an original equipment supplier for its Mercedes-Benz Trucks Vostok joint-venture facility. The delegation toured the Nizhnekamsk factory in Tatarstan and viewed the technologies and production processes in use.
Kings Road Tyres (KRT) has been appointed as the exclusive UK distributor in for the Matador truck and bus tyre range. The Matador brand is part of the Continental family of products and is produced in Europe. KRT’s newly acquired range includes 17.5, 19.5, 20 and 22.5-inch tyres.
Continental Automotive has appointed Brad Jackson director of communications for the NAFTA region. In his new position, Jackson will join the Marketing and Communications team and report to Kathryn Blackwell, vice-president marketing and communications NAFTA. He will be responsible for overseeing media relations within the region.
In conjunction with the Russia-Germany summit held in Hannover on July 18 and 19, Continental’s CEO Dr. Elmar Degenhart and the governor of the Kaluga region in Russia, Anatoly Artamonov, signed a memorandum of understanding on the new passenger tyre plant Continental is to build in Kaluga. The tyre maker intends to invest some 220 million euros in the Kaluga factory; construction will get underway before the end of the year and the factory is expected to be ready for production in late 2013. The Russian government has pledged to support the new site.
As of July 2011, Conti360° Fleet Services has extended its European coverage into Austria. This is the first addition to the German tyre maker’s service portfolio following its launch in eight core European markets – Belgium, Germany, France, the United Kingdom, Italy, Poland, Spain and the Czech Republic – and Continental now has plans to further expand the network into other regions.
On July 23 Continental released a statement outlining price increases of up to eight per cent for its truck tyres. These new prices will be introduced on August 1 and the exact amount of increases will depend upon product and region. Continental states that the price rise applies to all of its brands and to its entire commercial vehicle sector product portfolio.
German tyre maker Continental intends to optimise the way in which its 190 locations in 39 countries around the world work together with each other. To achieve this, the company will draw upon solutions from IBM in Germany, utilising its ‘Connections’ and ‘OmniFind’ software in order to respond to unforeseen events with greater flexibility and to take advantage of new business opportunities.
Commenting on Continental’s 18.5 million euro purchase of Modi Tyres Company Limited (MTCL), Nikolai Setzer, head of the German manufacturer’s Passenger and Light Truck Tire division, said Conti’s acquisition of a 100 per cent shareholding “underlines our commitment to the Indian market.” Both parties have agreed to keep commercial details of the transaction confidential, however the key points are that MTCL has now become a fully-owned Continental Corporation subsidiary and will be renamed Continental Tyres India Limited. The new entity will focus on the local production and distribution of cross-ply and radial truck and bus tyres as well as radial passenger car tyres for the Indian market.
Over the next three months, Czech Republic based agricultural, industrial and off-highway tyre manufacturer MITAS a.s. intends to change the corporate names of all its sales subsidiaries in order to bring their names in line with that of the company’s core tyre brand. The changes will be applied to all 13 of the company’s sales subsidiaries, the bulk of which are located in Europe.
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