Continental Archives - Page 174 of 229 - Tyrepress

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.”

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CTNA Announces $78 Million in New Investments for Mt. Vernon Plant

Continental Tire North America (CTNA) is planning US$78 million in new investments at Mt. Vernon facility. According to Conti, these funds will “significantly expand CTNA’s commercial operations and regionalise the company’s commercial tyre production to better meet market demand in the United States.”

“This is another major investment in our Mt. Vernon facility and one that will allow us to take our commercial operations to a new level,” said CTNA CEO Matthias Schönberg. “The market demand in the US for CTNA’s commercial tyres continues to grow, and this expansion will help us to serve all our customers better, faster and more efficiently.”

2nd July 2007/by Tyrepress Editors

It’s ‘Guinness Time’ at Conti

In the world of high-speed tyres Germany’s Continental has demonstrated it has nothing to be ashamed of following the entry of one of its products, the ContiSportContact Vmax, into the famed Guinness Book of Records as the world’s fastest standard production tyre. Certification experts from TÜV Süd Automotive in Munich recently served as independent technical witnesses to confirm the Conti tyre’s status, a pre-condition for entry in the revered book. First unveiled three years ago, the ContiSportContact Vmax is approved for use at speeds up to 360 km/h (225 mph), and carries a ‘ZR’ rating – the top designation on the speed rating scale, Y, does not accommodate speeds in excess of 300 km/h.

The tyre is based on the ContiSportContact product family and underwent further development to achieve substantially enhanced high-speed characteristics. Top priority in this context was efficient tyre cooling, whilst maintaining good handling and positive characteristics in the wet. “When developing this high-tech tyre, which is approved for road use, we were able to call on experience gained in the design of high-performance tyres for original equipment and for our technology partners in the customising sector” explained Holger Berkmann, tyre developer at Continental. “Adopting Formula One concepts would not help us here, as high-speed tyres approved for road use have to build up grip on wet and dry roads and they are also expected to achieve an appropriate mileage.”

29th June 2007/by Tyrepress Editors

Michelin Ranked Highly in PwC Shareholder Return Report

Michelin has been listed as the automotive supplier offering the highest shareholder value, according to the latest PricewaterhouseCoopers shareholder value rankings. These figures, for the year ending April 2007, show the French tyremaker brining a return of 68.3 per cent over the year and 158.9 per cent over three years. No other tyre manufacturers ranked in the PwC-Automotive News Europe top ten.

In 2006 Continental AG was ranked as the European parts supplier offering the highest shareholder return over a three-year period, with a return of 529 per cent recorded for the German tyremaker. The company was also ranked highest for return over a one year period in 2005.

27th June 2007/by Tyrepress Editors

Former Conti Boss Urban Dies

Former Continental CEO Horst W. Urban passed away on June 21, three weeks after celebrating his 71st birthday. Mr. Urban had been battling the affects of lung cancer, for which he underwent surgery last year.

Together with colleague Helmut Werner, Horst Urban developed proactive strategies to strengthen the tyremaker’s position, including the acquisition of rival brands Semperit and General Tire. During the early 1990s Urban vigorously resisted a takeover bid for Continental launched by Pirelli. Following the successful conclusion of this corporate struggle he tendered his resignation as company CEO in 1991, reportedly due to differences of opinion with supervisory board chairman Dr. Ulrich Weiß. At this time Dr. Weiß also held a position on the board of Deutsche Bank and was, amongst other roles, responsible for the bank’s business in Italy, and was thus considered to possess a more sympathetic view of the Pirelli takeover attempt than Mr. Urban.

26th June 2007/by Tyrepress Editors

Casalbore Named Business Partner at Barron’s Wholesale Tire

(Akron/Tire Review) Carl Casalbore has joined Barron’s Wholesale Tire Inc. as a business partner and will serve as vice president of sales and marketing. Casalbore had been director of passenger and light truck replacement dealer sales for Continental Tire North America (CTNA) and was responsible for developing and managing the independent tire dealer sales channel. Before joining CTNA, he had been vice president of marketing and high performance tire development at Cooper Tire & Rubber Co. Casalbore had also worked at Pirelli Tire North America Inc. as vice president of sales.

26th June 2007/by Tyrepress Editors

Conti Chief Says Company Looking at Major Acquisitions

(Akron/Tire Review) Bloomberg reported that Continental AG is “working on” as many as five major acquisitions in addition to its ongoing quest to buy Siemens AG’s VDO unit. The news was attributed to Conti chairman Manfred Wennemer.

Wennemer, reportedly, described the hoped for acquisitions as being in the $1 billion range. There was no word as to whether any of the planned buys involves another tire company or specific part of the world. Wennemer also said that Conti may consider another run at buying Siemens VDDO even if it goes public, as Siemens AG plans.

25th June 2007/by Tyrepress Editors

Conti Names Appointments for New Business Units

As of 1st July Dr. Andreas Esser (48), who has headed Continental’s global Original Equipment Car Tires business for many years, will be responsible for the company’s newly-created business units Replacement Business Car Tires and Replacement Business Truck Tires Asia, based in Shanghai. At the same time Nikolai Setzer will take over as head of Continental’s Original Equipment Car Tires business. Dr. Esser previously held this position for over six years, whilst Nikolai Setzer was responsible for the OE Car Tires business in North and South America.

Creating the two new business units enables Continental to consolidate its growing activities in the car, MPV/light van and commercial vehicle tyre replacement business on Asia’s booming market, and Continental believes this move demonstrates the company’s interest in this continent. In his new position Dr. Esser will report directly to Manfred Wennemer, chairman of the board at Continental AG and head of the Car Tire division, as well as to Dr. Hans-Joachim Nikolin, who is a member of the board and is also responsible for the Commercial Vehicle Tire division. Dr. Esser headed the Original Equipment Car Tires business unit for over six years and under his leadership Continental became number one in Europe for OE sales and number three in North America.

25th June 2007/by Tyrepress Editors

Strong Truck Tyre Demand Means Short Supply in Europe

Truck manufacturers (Volvo and MAN) are reporting that supplies of truck tyres are running thin. This suggestion was confirmed, according to Deutsche Bank analysts report, following conversations with Michelin and Continental. The reason for the short supply is much stronger than anticipated demand, with OE and replacement sales up 12 per cent and 10 per cent respectively across Europe in the first four months of the year. The analysts characterise this as “good news for Continental since European truck sales represent approximately 7 per cent of group’ sales. It is said to be an especially good development for Michelin as European truck sales represent 18 per cent of group sales.

22nd June 2007/by Tyrepress Editors

Michelin to Ride Truck Tyre Shortage in 2008?

Steadying raw material prices, Michelin’s productivity improvements and increased truck tyre demand could lead to a “favourable price environment” for the company, according to Deutsche Bank analysts. The theory relies on demand increases in the North American market. If this was to happen in 2008, say the analysts, there is a risk of an imbalance between global supply (set to increase by 5.0 million units) and demand (which could rise by 8.0 million units). According to the analysts, truck tyre sales represent 34 per cent of Michelin revenues versus 10 per cent at Continental, for example.

21st June 2007/by Tyrepress Editors

Siemens Receives Three Bids for VDO Unit, Continues to Favour IPO

(Akron/Tire Review) Siemens AG has received three bids for its automotive unit VDO but continues to favour a public offering, German newspaper Handelsblatt reported, citing company sources. “The IPO is clearly the number one option,” a Siemens spokesman told the newspaper. According to the report, Continental AG and TRW Automotive have submitted a bid. The third bid may have been made by financial investors KKR and Permira, the newspaper said, citing industry sources. All three bidders are now to receive detailed VDO figures for further examination, the report added.

21st June 2007/by Tyrepress Editors

Casalbore Leaves Conti

(Akron/Tire Review) Continental Tire North America is looking for a new sales director. Carl Casalbore has left the company after serving as director of passenger/light truck dealer sales for the past two years.

No replacement has been named, and CTNA has begun a search for his replacement. In the interim, CTNA executive vice president of sales and marketing Andreas Gerstenberger will serve as acting sales director.

20th June 2007/by Tyrepress Editors

Rollier Gives Details of Michelin Cost Saving Plans

Speaking in an interview with French daily, Le Figaro, Michelin managing partner, Michel Rollier gave details of how less than 50 per cent of the 20,000 people who will retire from Michelin will be replaced. Michelin’s intention is close the labour cost/sales ratio gap between itself and its main competitors. While Michelin had a labour cost/sales ratio of 29 per cent last year, Pirelli’s and Continental’s labour cost/sales ratio were 21 per cent, according to Deutsche Bank figures.
“In our 2010 estimates we have assumed that only one third of the 1.5 billion gross cost savings (700 million from labour costs, 500 million from purchasing and 300 million from others areas like logistics) will be saved,” said the analysts. Instead 70 per cent is expected to be given back to dealers “mostly through higher gross margins.”

13th June 2007/by Tyrepress Editors

Michelin’s Future Productivity Gains Will Be ‘Huge’

Analysts are predicting huge productivity gains after Michelin announced the restructuring of its Japanese plant, involving the lay-off of 550 people (following Canada, Nigeria and France last year). More cuts are expected in the next quarters, with annual restructuring charges to involve approximately 1,500 people per annum. This is in addition to the attrition of approximately 4,000 people per annum (of which less than 50 per cent being replaced). Thus, the net reduction of the workforce will reach approx 4,000 people per annum (5,500 gross).

“This will lead to significant Labour cost savings. We expect the group’s labour cost sales ratio to reach 22 per cent by 2010 (ie closing the gap with peer group) or equivalent to an improvement of almost 200 basis points per annum. Management targets a 30 per cent productivity gain by 2010, of which only one third will come from the volume effect,” the Deutsche Bank analysts explained. While Michelin had a labour cost/sales ratio of 29 per cent last year, Pirelli’s and Continental’s labour cost/sales ratio were 21 per cent, according to Deutsche Bank.

13th June 2007/by Tyrepress Editors

A Word of Summer Caution From Conti

Summer is here and motorists are more inclined to spend time in the great outdoors. This of course provides plenty of scope for vehicles to become plastered with dirt and mud, and the more fastidious drivers amongst us will be giving their vehicles a good many hose downs during these warmer months.

However washing a car can undermine the structural integrity of the vehicle’s tyres, and the German tyremaker Continental has released a timely reminder of the risks of hosing down tyres using high-pressure water. Continental recommends a minimum distance of 20 centimetres (8-inches) between the spray nozzle and tyre when using a high-pressure hose, otherwise damage to the sidewall may occur. Conti further points out that the detergents used can also create problems as they may penetrate between the tyre and the rim flange, potentially causing the tyre to move on the rim during breaking or acceleration.

12th June 2007/by Tyrepress Editors

Conti Plans HQ Move

(Akron/Tire Review) The Charlotte Business Journal has reported that Continental Tire North America Inc. plans to move its headquarters from Charlotte to a business park in nearby Lancaster County, North Carolina. CTNA is reportedly negotiating a multi-million deal with the park developer.

According to the report, CTNA would move its 120-person headquarters staff to a 65,000-quare-foot facility, and will keep a small operation at its 1.7-million-square-foot Charlotte facility. The Charlotte facility had served as CTNA’s headquarters and home plant. The plant has ceased producing tyres, but still serves as a warehouse and distribution centre.

12th June 2007/by Tyrepress Editors