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.”
Last month, Pirelli announced its production of a quieter tyre for original equipment customer Audi, but it hasn’t been the only tyre maker working on noise reduction solutions with its customer; the German car maker has also developed a very similar product with another major tyre supplier, Continental.
Continental shares that the 21-inch rim option of the Tesla Model S comes with its ExtremeContact tyre as original equipment. The ExtremeContact, which is not sold in Europe, is fitted to US and Canadian market versions of the electric saloon in size 245/35 R21. According to the tyre maker, the performance of ExtremeContact “matches up nicely” with the demands of the rear-wheel drive performance saloon that can travel from 0 to 60 mph in as little as 4.4 seconds.
Reporting its second quarter and first half results, Executive Board chairman Dr. Elmar Degenhart cautioned that the stronger development seen in the second quarter shouldn’t be viewed as a turnaround; rather, sales developed better due to seasonal and technical factors. The European market – where Continental makes 55 per cent of its sales – was described as unstable, and following what the company calls “modest development” in the region’s replacement tyre market in the first half of the year, Continental states its previous estimate for the segment “no longer seems possible.” It now anticipates an “increase of one per cent at best.” The company also said growth in the Asia and NAFTA regions is “also expected to diminish as the year progresses.” As a result, Continental has decreased its full-year forecast from growth of five per cent to four per cent, or “around €34 billion”.
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Continental’s Nikolai Setzer recently outlined the company’s intention to invest in non-automotive areas (more on this in Tyres & Accessories’ August magazine), but his comments by no means indicate a drawing away from the automotive business. The German firm’s continued interest in this area could be seen at the groundbreaking for the new extension to its research and development centre in Singapore.
Fortune has released this year’s ‘Global 500’ list, which names the world’s largest companies in respect to turnover for the fiscal year ending before or on 31 March 2013. While no tyre firm could hold a candle to Royal Dutch Shell, whose revenues of US$481.7 billion propelled it into the number one position, three leading tyre majors made it onto the list.
On 19 July, the first all-new ContiTread licensed retreading facility in the US officially opened. The DLS Retreading plant, located in Fort Mill, South Carolina, will serve the retreading market in its home state with truck tyres retreaded with ContiTread flat pre-cure treads, and will also offer emergency road service, truck tyre service and new Continental and General-branded tyres. The 72,000 square foot (6,689 square metre) facility includes a 16,000 square foot retreading unit as well as 11 service docks. DLS Retreading is expected to employ 50 workers within four years.
Continental garnered a number of winter tyre accolades in the first half of 2013, most recently receiving a coveted award from the UK’s Auto Express magazine. Continental’s ContiWinterContact TS850 ‘Best Winter Tyre’ for the second consecutive year in the 2013 Product Awards.
The commercial availability of Sumitomo’s Enasave 97, albeit in small volumes, has demonstrated the feasibility of producing tyres containing very little in the way of fossil fuels. Introducing completely or nearly fossil fuel-free products in greater quantities is a goal held by all tyre majors, and Continental’s head of material and process engineering has shared some details about the German tyre maker’s progress in this direction.
Continental reports its latest Eurobond has a nominal amount of €750 million; it is expected to be issued on 16 July and has a term of five years, with a 3.0 per cent annual interest rate. Interest will be payable semi-annually in arrears. The issue price is 98.95 per cent. The bond will be listed on the Luxembourg Stock Exchange’s Regulated Market and BNP Paribas, Citi, Deutsche Bank, ING and UniCredit will as joint-bookrunners for the transaction.
Pirelli has won the 2013 Volkswagen Group Award for its global partnership, product quality, competitiveness, project management and flexibility. According to the company, VW’s “global champion” Pirelli has produced more than 200 homologations that equip some of the Wolfsburg carmaker’s most prestigious models. Another 250 homologations are currently under development, many of which will go into production within the next few years.
Continental has released details of its upcoming Eurobond offer. It says it will issue a bond with a volume of at least €500 million and a term to maturity of five years, and intends to use the issue proceeds thereof for the partial refinancing of its bond issued in September 2010. The offer is open to investors residing outside the US, Canada, Australia and Japan. The issue volume and bond conditions are expected to be determined in the next few days.
Continental says it “recently received a whole raft of approvals” from Audi. The ContiSportContact 5 summer tyre has been approved for both the Audi A3 and A8, while in future the A6, A6 Allroad, A7 and RS 6 Quattro will be equipped with the sportier ContiSportContact 5 P. In all, five tyre sizes for 19 to 21-inch rims have been homologated. The Continental tyres fitted as original equipment on most of the above Audi models will bear the letters ‘AO’ (Audi Original parts) on the sidewall, and in future these tyres will also be available to order from Audi dealerships and specialist tyre dealers. Tyres for the Audi RS will bear the sidewall marking ‘R01’.
Yokohama Tire Corporation has hired Andrew Zeisser as its new director of OE sales. In this role, Zeisser will be responsible for the company’s original equipment business in North America and will lead Yokohama Tire Corporation’s OE sales, engineering and quality functions. He will be based at the company’s Detroit, Michigan office.
Continental is continuing its ongoing plans to more fully “connect” cars. As far as the automotive supplier is concerned, it is not just about smartphones or computers, but rather, but rather connectivity is becoming an increasingly influential part of any sales proposition. For Conti, the connected vehicle will be a key subject of future developments. “Today, more and more new vehicle functions are already based on connectivity. To create innovative functions, we are linking vehicle components and systems ever more closely with one another and, at the same time, increasingly connecting the vehicle to the outside world,” explains Ralf Lenninger, head of the Strategy and Development department of Continental’s Interior division.
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