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.”
Kwik-Fit has issued its round of January promotions with offers on premium label tyres. The promotion includes 30 per cent off four, and 15 per cent off two premium tyres, including brands such as Pirelli, Dunlop, Goodyear, Firestone, Continental and Bridgestone. Customers can get a further reduction, which equates to 20 per cent off two tyres, if they book online at kwik-fit.com.
Continental’s Conti4x4Contact has been chosen as US market original equipment for the 2010 Mercedes-Benz GLK. The tyre will be fitted to the new 4×4 in size 235/50R19 99H.
Wholesaler R H Claydon reports that the year of 2008 drew to a close after a prolonged period of factors which made the function of stocking and marketing land based tyres, agricultural and construction somewhat challenging. Like many others, the firm experienced worldwide commodity prices to the manufacturing industry continuing to rise, thus affecting the price of the finished product. Rising oil prices, which greatly affected all industries, alongside currency fluctuations prompted widespread re-evaluation of delivery and servicing to contain the high levels of road fuel costs and yet maintain the service. The wholesaler says that, “the most frustrating and punitive situation all experienced in 2008, was shortage of product, a factor especially prevalent, says RHC, in radial tractor tyres.
The Schaeffler Group has completed its planned takeover of Continental AG, paying 75 euros per share to the depositary banks of those who tendered their shares to Schaeffler. As a result of all the recent share trading, Schaeffler Group holds 49.90 per cent of the voting stock of Continental AG and is therefore the company’s largest shareholder. At the peak of the complicated transaction Schaeffler Group held up to 90 per cent of Conti stock, although Schaeffler has now transferred the additional shares tendered to financial institutions. The European Commission gave clearance for Schaeffler to go ahead with its plans to buy into Continental AG on 19 December 2008.
“The conclusion of the takeover clears the way for integrating the companies quickly and in a pragmatic manner. Against the backdrop of the financial crisis and the market changes in the automotive industry, both companies are facing great challenges and have no time to lose. Constructive cooperation and concentration on factual issues and business matters is all important now. This is also what our staff and customers expect from us”, explained Dr. Juergen M. Geissinger, Schaeffler Group president and CEO.
In the company’s completion statement Dr Geissinger again failed to define Continental AG’s highly profitable tyre and rubber businesses as “strengths.” While he did remark that the combined companies will bring together “Schaeffler’s strengths in mechanical, mechatronic and precision components for engines, transmissions and chassis and Continental’s strengths in electronics and software systems for engines, chassis and vehicle interiors” the fact that he did not mention tyres or rubber products means there are still question marks over the future of these parts of the business.
Unhappy in your job? Go and work for Continental. A survey undertaken in Germany indicates that workers at Continental are happier with their employer than the ‘industry benchmark’. And while Conti doesn’t state that its staff spring out of bed each morning with an unquenchable enthusiasm for the day’s work that lies ahead, it comments that the findings of the “BASICS live” employee survey conducted by the University of Manheim, in collaboration with the tyre and automotive components manufacturer, show Conti to have faired far better than the benchmark results in several subject areas.
In addition to its sale of 5.48 per cent of its share in Continental AG to Sal. Oppenheim, the Schaeffler Group has sold a 3.99 per cent parcel of shares to the German private bank B. Metzler seel. Sohn & Co. In a January 5 regulatory filing, Continental said the amount of its voting rights held by Schaeffler had thus fallen from more than 20 per cent to 15.2 per cent.
Continental Tire North America launched a redesigned consumer Web site at www.continentaltire.com. CTNA said the revised site is easier to navigate, “and echoes the graphic scheme of the company’s upcoming new ‘Confidence’ ad campaign.”
The site includes links to the company’s latest news, promotions and events, as well as a dealer locator and links for consumers to select and register their tyres. In addition, there is an FAQ page and “Tech Docs” section to answer consumer questions and provide technical advice. (Tire Review/Akron)
Cambrian Tyres, said to be the UK’s largest motorcycle tyre distributor, continues to offer its dealers exclusive special offers and strong customer service. The ability to do this, says Cambrian, is down to the company’s bulk buying power capabilities and a dealer-centred philosophy. The distributor’s target of being a ‘one stop tyre shop’ for dealers has been realised since its early days, and today Cambrian reports it is the leading UK customer to each of the big seven tyre manufacturers.
Customer sales and technical enquiries are handled by Cambrian’s knowledgeable telesales team, a team that between them holds years of motorcycling and industry experience, enabling them to give customers what Cambrian Tyres calls the best, unbiased advice – advice that ensures the correct tyres are chosen. 2009 sees the company launch its B2B website where account holders can order tyres or view stock availability online, making ordering, whether within or outside business hours, even easier.
Schaeffler Group has reportedly transferred 5.5 per cent of the shares it holds in Continental AG to Sal. Oppenheim Jr. & Cie. Stock tendered by Continental investors gave Schaeffler direct and indirect control of 90 per cent of the company, almost doubling an agreed limit of 49.99 per cent. Schaeffler Group spokesperson, Detlef Sieverdingbeck, told Tyres & Accessories that the transfer of shares to Sal. Oppenheim was the first such move and that more will follow.
The EU Commission has granted approval of the takeover of Continental AG by the Schaeffler Group. According to an official statement released by the company shortly after the approval was granted on Friday 19 December, “the Schaeffler Group will now conclude the takeover without delay.” Schaeffler will pay 75.00 euros per share to the depositary banks of those shareholders who have tendered their shares to Schaeffler, on or around 8 January 8 2009. The depositary banks will then credit these payments to the shareholders’ accounts. According to the company, shares tendered for sale can be traded up until 2 January 2009.
“The takeover of Continental AG is a decision of far-reaching strategic importance for the Schaeffler Group. With Schaeffler and Continental we’re bringing together two excellently positioned German technology leaders. This merger will create one of the most successful global automotive suppliers with outstanding expertise in the high-growth fields of energy efficiency and alternative powertrain systems. It is our target to spearhead the global market,” emphasized Dr. Jürgen M. Geissinger, Schaeffler Group president & CEO.
On 18 December Continental Group opened its first Continental tyre shop in Amman, Jordan. The shop is located in Al Madina Munawra street in the western part of Amman. and was opened in partnership with Nasco Automotive, the exclusive importer of Continental products in Jordan since 2007.
Nasco Automotive offers all Continental summer tyres and General Tire-branded passenger and light truck, commercial vehicle and industrial tyres. The selected distribution channels in Jordan are wholesalers as well as retailers. “We have been carefully selected to represent some of the world’s most reliable and superior premium tyre brands to serve all the segments in the respective markets of Jordan, Egypt, Sudan and Iraq. And we are proud to be the exclusive partner of Continental in Jordan”, said Badie Dayeh who is business development and marketing manager of Nasco Automotive.
An international jury has awarded the “iF product design award 2009” to Continental for the design of its HTR 2 trailer tyre. The HTR 2 is a tyre, says Conti, that heralds a completely new generation of tyres to be launched over the next two years, and the manufacturer says the product range represents a quantum leap in terms of technology. Continental regards the tyre’s high mileage, patented “Airkeep System” that delivers 50 per cent improved constant tyre inflation pressure and low rolling resistance as the qualities that have secured its position of technical leader in its class within a short amount of time. The Continental tyre designers faced the challenge of creating a distinctive external appearance to match this technology and they also had to convey the quality of the product through the design.
Continental today fell 6.5 per cent as stock brokers speculated the EU decision on the validity of the company’s proposed takeover by Schaeffler Group may be delayed. “These decisions usually come by noon (local time) and as there has been no accouncement yet, investors are getting worried that the decision may be delayed,” a Frankfurt-based told AFX news agency.
Continental AG shares rose to one-month high as the stock market speculated that European regulators will give the Schaeffler Group takeover bid the green-light tomorrow. Bloomberg reported that Conti stock surged 19 per cent to 42.70 euros during the day’s trading.
Meanwhile dormant tensions in the seemingly inharmonious takeover appear to be mounting again following newspaper reports that Schaeffler is planning to force out Hubertus von Gruenberg. Continental’s supervisory board chairman. According to Handelsblatt, “Von Gruenberg wants to establish a ‘leading role’ for Continental within the merged company, an effort that Schaeffler CEO Juergen Geissinger is attempting to thwart.”
A survey conducted by Continental suggests that Britain’s young drivers are the social group least likely to check their car tyre pressure. The national poll revealed that under-25s are twice as likely to leave their tyres unchecked than any other age group, with almost half (46 per cent) completely unaware what their tyre pressure should be.
One in five of the young people polled had not checked their tyre pressures in the last month compared to the standard across all ages of one in 12. Conti estimates that “an average driver could waste as much as £120 a year on fuel by not regularly checking their tyre pressure.” With this in mind, younger drivers facing high motoring costs with more expensive insurance premiums can not afford to ignore their tyre pressures. For a generally more environmentally aware sector of the public, young people should also be considering that the average car driver could produce an extra 250lbs of CO2 a year by not maintaining their tyre pressures.
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