ContiTech Expands Production Capacity in Romania
(Akron/Tire Review) The power transmission group of the ContiTech division of Continental AG has expanded drive-belt production capacity at its manufacturing plant in Timisoara, Romania.
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.”
(Akron/Tire Review) The power transmission group of the ContiTech division of Continental AG has expanded drive-belt production capacity at its manufacturing plant in Timisoara, Romania.
Continental has today confirmed its plans to further expand the ContiNetwork beyond the UK through the appointment of Advance Pitstop as the ContiNetwork Partner responsible for the Republic of Ireland. This move facilitates ContiNetwork’s growth into Ireland and marks the second phase of increased geographical coverage – the first being the recent appointment of Modern Tyre Group in Northern Ireland.
Group Tyre (UK) Ltd has announced the appointment of Nick Manning as director of purchasing. Joining Group Tyre after a substantial career within the Continental Tyre Group Limited, he assumes the full buying responsibility from Larry Cross, whose role as Coordinating Director of Group Tyre continues.
Welcoming Nick Manning’s appointment Larry Cross, said, “Nick’s huge depth of experience of the industry will be a huge asset to Group Tyre. His substantial business development and brand strategy expertise, together with his unique insight into every aspect of the UK tyre market is an invaluable resource. This can only further strengthen the position of Group Tyre as the UK’s leading independent wholesaler and hugely benefit both our members and their customers.”
Continental’s decision to launch the third variation of its popular SportContact reflects the increasing importance of high performance products in its portfolio. And when you consider that Continental experts predict that 16 per cent of the replacement market will be made up of WYZ products by 2009, you can see why.
Continental has developed the new ContiSportContact 3 with the car manufacturers and drivers of sporty vehicles in mind. Consequently, shorter braking distances, enhanced handling characteristics and improved driving safety on wet roads are said to be the new tyre’s main benefits. The Continental range also includes a different tread pattern option both for high-powered rear wheel drive cars and for customising requirements. The ContiSportContact 3 is available now.
Gacosia, owned by the Tsui brothers, has its headquarters in Hong Kong and a subsidiary in California. China Wheel produces Gacosia its alloy wheels, and in turn the manufacturer considers Gacosia as one of its two self-brands (the other being “Finn”). Stephen Tsui, Gacosia managing director, and his team, spend most of their time in China Wheel’s office space in Guangzhou: “We are very close partners,” he says. The relationship between the wheel brand and its manufacturer – and this is not uncommon in China – is not based on actual contractual agreements, as is the standard in the western countries. Instead it’s a case of “you scratch my back and I’ll scratch yours,” so to speak.
Following the news that Continental’s Bahia, Brazil plant is officially open, analysts have reported that the company’s decision to increase production in “low-cost” countries could save between 100 and 110 million US dollars. According to Deutsche Bank, this calculation is based on average per worker production of 6000 tyres/annum against “10 times lower” labour costs compared with the US. The report also suggested that the additional transportation/logistics costs incurred are equivalent two US dollars per unit.
Union members at the Charlotte factory of Continental Tire North America Inc. have authorised the group’s leaders to call a strike, Mark Cieslikowski, president of the plant’s United Steelworkers Local 850, was reported as saying in the Charlotte Observer. But union leaders have “a long way to go” before calling a strike, as they are still trying to negotiate a new labour contract with the company’s managers, Cieslikowski said.
Toyota Motor Europe has presented its Supplier Award for Superior Performance in Project Management for 2005 to the Continental Automotive Systems Division. In doing so, Toyota paid tribute to the supplier’s performance in the development, production preparation and delivery of the brake system of the new Yaris subcompact car. This was the first time that Toyota transferred the system responsibility for a complete brake system to Continental Automotive Systems.
The recent purchase of Motorola’s Auto Electronics business by Continental has increased the German company’s market capitalisation by 900 million Euros this week. Financial analysts appear to approve of the deal, describing it as a good fit and, at US$1 billion (812 million Euros), they feel that the price was right. The analysts also believe that the deal will quickly add to the group’s operating profits.
Continental AG has just opened its new tyre plant in Brazil and said that it should be operating at full capacity within the next 18 months. “The new low-cost production capacities play a key role in our concept for the future passenger tyre business in the loss-making NAFTA region. At the same time, the capacities allow for profitable growth,” CEO Manfred Wennemer said in a statement released in Germany.
Continental has recently purchased the Automotive Electronic business of Motorola and, say analysts, this deal looks reasonable. The acquisition price is only 60 per cent of sales (in line which the acquisition price of Temic five years ago), and only 10 per cent of Continental, which makes it easier to absorb and integrate.
Continental AG and Motorola, Inc. have jointly announced that the
companies have entered into an agreement under which Continental will acquire Motorola’s automotive electronics business for approximately US$ 1 billion in cash. The transaction includes Motorola’s controls, sensor, interior electronics and telematics businesses.
(Akron/Tire Review) Continental AG CFO and Continental Tire North America President and CEO Alan Hippe told media sources in Germany that the company has not yet made a decision on its tyre production plans in China. Hippe did, however, tell AFX News that the company favours setting up a Greenfield plant in the country, allowing the company to take advantage of growing market opportunities in China as well as export to other Asian markets.
The new Dunlop Sportmax Qualifier scored another significant victory in its second major international comparative tyre test; this time by German magazine PS.
The test confirmed the result published last month carried out by US magazine, Sport Rider, which compared the top road tyres on the market. The Dunlop Sportmax Qualifier was pitched against the latest offerings from Michelin, Pirelli, Bridgestone, Avon, Metzeler and Continental in a gruelling assessment of traction, braking, steering response and general handling qualities.
Continental has announced a further enhancement of CBS with its ‘DriveOn Time’ guarantee, which reimburses the customer 100 euros should a predefined maximum breakdown repair time be exceeded.
In the event of a tyre puncture, the truck driver can call ContiEuroService (CES), which immediately instructs one of its 4,500 European CES partners to attend the breakdown in the shortest possible time.
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