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.”
In the US, Navistar International Corporation has chosen Continental truck tyres as the standard original equipment fitment for all of its International PayStar, WorkStar, and DuraStar severe service and medium duty vehicles. The agreement took effect on 1 January 2010.
Continental is setting up a management structure in its home market with a stronger gearing towards customer and regional demands. The company says its Continental Reifen Deutschland GmbH operation will “step up its exploitation of the experience gained in the passenger tyre industry and trade business, with the aim of more fully satisfying the needs of business partners.” Several new key appointments will facilitate the company’s plans in Germany, Austria and Switzerland, the three lands serviced by Continental Reifen Deutschland.
Nearly three million motorists have had a run-in with another vehicle during the recent winter weather, according to research by Continental Tyres. One in 10 drivers are said to have crashed into cars in the last month during the snowy and icy weather. 45 per cent said they had two or more near misses over the cold snap. The average motorist involved in a prang has done £320 worth of damage – but a third failed to own up to their wrong-doing if the accident was their fault. Another 34 per cent avoided involving their insurance company in order to keep their ‘No Claims Bonus’.
Just days after announcing plans to use football as a means of highlighting its attractiveness as an employer, Continental has outlined plans to “put stock in fresh expertise, new ideas and, thus, increasing innovative prowess in the form of highly qualified junior staff” during 2010. “This year we plan to hire around 1,000 university graduates and young professionals worldwide,” reported Continental Executive Board member Heinz-Gerhard Wente. A quarter of these new recruits will be employed in Germany, he added. The automotive supplier says that while it will primarily focus upon hiring engineering and natural science majors, it is also looking for business and economics graduates.
The UK distributor for Yokohama tyres, Yokohama HPT, has announced that the latest high performance product from the Japanese manufacturer, the ADVAN Neova AD08, will be available in the UK from March. The Neova AD08 is the latest addition to the flagship ADVAN range, reportedly signifying the highest levels of performance, grip and safety Yokohama has to offer. The AD08 is designed to bridge the gap between the ADVAN Sport, designed specifically for high performance road cars, and the ADVAN A048, the company’s road-legal track day tyre.
Continental wants to spread word of its attractiveness to potential employees, and in its German home market the tyre and automotive technology supplier is using the beautiful game to meet this end. It has brought a programme called “Kick it with Continental” into play, and as part of this invited some 400 German students to a day focusing on the upcoming Conti-sponsored World Cup in South Africa. On the agenda, among other things, are presentations, contests and panel discussions with German football personalities Karl-Heinz Körbel, Mirko Slomka and Thomas Schneider.
Continental Tire the Americas has followed the lead of the global company, by aiming to raise its profile by becoming the official sponsor of Major League Soccer (MLS) in the US. Under terms of the new agreement, Continental will become the exclusive tyre of MLS. According to the company, the sponsorship is part of a multi-year deal with MLS which will commence at the beginning of the 2010 MLS season.
"Continental Tire has been a long-time sponsor of FIFA World Cup Soccer, so this new sponsorship supports that effort while at the same time raising our profile here in the US," said Matthias Schoenberg, CEO of Continental Tire the Americas, adding: "Soccer is the world's most-watched sport, and it is exploding in popularity here in the United States. We are very excited about this sponsorship; MLS will be a great way for Continental Tire to expose a broad audience to our products, including the new ExtremeContact line of ultra-high performance tyres."
Les Smith Haulage Limited’s decision to switch to Continental from another premium brand is said to be delivering 25 per cent longer life on its front steer tyres. According to the company these tyres are achieving over 100,000 kilometres before being changed. Those on the rear axle are reportedly giving up to 400,000 kilometres of life.
The 18 vehicle fleet is made up entirely of Mercedes-Benz Axor two-axle 18 tonners. These typically cover between 80,000 and 100,000 kilometres a year on work throughout the UK which includes both motorway and A road running. A policy of only ever fitting new tyres, correct tyre selection and careful monitoring of tyre condition lie behind the good performance of the Continentals.
Continental reports that the following news is not intended for direct or indirect release, publication or distribution into the USA, Canada, Australia or Japan, so T&A invites subscribers outside of these regions to read further.
Morgan Stanley analysts have described Conti's recent share issue as a “very significant” move forward in an investor's note dated 8 January. “We think Conti's latest recapitalization effort is positive for four main reasons: it enables the forward start on the 2010 debt maturities… the 35 euros price was a smaller discount than… expected; [it] increases free float to 25 per cent from 11 per cent and helps stabilize the company's image in the marketplace which reduces the risk to the underlying business.” While they conceded that this final point is “intangible,” the analysts report that the share offer addresses a key concern “that Conti's winning culture and ability to retain existing contracts, attract new business and new human talent was threatened by an unstable financial future.” In this regard, we think Conti is turning the corner.
Results of the latest J.D. Power Asia Pacific 2009 Japan Original Equipment Tire Customer Satisfaction Index Study indicate that high levels of satisfaction in original equipment tyres may well lead to a notable increase in brand loyalty amongst customers purchasing summer replacement tyres. The January 7 released results show that, on average, 74 per cent of motorists in Japan are likely to stick with their vehicles’ original equipment tyre brand when purchasing summer replacement tyres. However, amongst the more highly satisfied customers, namely those whose satisfaction scores averaged 800 or higher on a 1,000-point scale, this figure increases to 88 per cent.
In the middle of the UK’s coldest winter for 30 years, industry association Tyresafe and tyre manufacturers and traders alike are pointing to the lasting benefits of driving on specialist cold weather tyres. The clear advice is that drivers who took the precaution of fitting cold weather tyres to their vehicle last autumn will continue to benefit from safer driving long after the current snow melts away. With more natural rubber in the tyre tread compound than standard ‘summer tyres’, they provide significantly shorter stopping distances in cold (under seven degrees celcius), wet and icy conditions.
“There is a misconception that cold weather tyres are not appropriate for drivers in the UK,” explains Stuart Jackson, chairman, TyreSafe. “However, this couldn’t be further from the truth. Cold weather tyres provide much better grip in both wet and dry conditions when the temperature falls below seven degrees, so they offer extra safety typically from October through to March. These tyres also have different tread patterns from ‘summer’ tyres making them more able to cope with snowy conditions. Those drivers who have chosen cold weather tyres will continue to benefit long after the current snow falls melt away.”
Research carried out throughout most of 2009 by Encircle Marketing reveals that independent dealers sold a pair (front and rear) of motorcycle tyres at an average of up to £32 cheaper than other channels. Additionally regional independent dealers kept prices relatively flat throughout the year, hovering between £213.77 and £216.35, while local independents and national fast fitters increased prices on average each quarter. Dealers meanwhile were the most expensive in each quarter. The data was collected using 8,492 mystery calls between January and November 2009, during which 25,794 prices were collated across eight key tyre brands – Avon, Bridgestone, Continental, Dunlop, Maxxis, Metzeler, Michelin and Pirelli.
Continental AG shares rose over 10 per cent yesterday, following the start of a widely expected 1.1 billion euro rights issue. About three quarters of the new shares are said to have been placed with investors already. The offer also has the dual effect of diluting Schaeffler’s stake in the company to just over 75 per cent. Strategically, this is something Schaeffler (which previously indirectly controlled 90 per cent of Conti) shares is likely to be happy with as it is still firmly in control of the company’s stock.
The issuance of 31 million new Continental AG shares, valued at 35 euros apiece, is anticipated to increase the company’s capital by approximately 18 per cent. This rights issue, approved by Conti’s Supervisory Board on the evening of January 6, has been described by Continental as “another significant milestone” in its plan to improve its capital and financing structure, and the capital raised along with the 2.5 billion euro loan announced last month will be used to repay the company’s 3.5 billion euro Tranche B debt, which is due in August.
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