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.”
Continental AG may have delivered 948 million euros of adjusted pre-tax profits (EBIT) in the second quarter of 2012, compared with consensus expectations of 865 million euros, but the biggest surprise for analysts was said to have been the group margin figure. At 11.5 per cent this was nearly a percentage point (and therefore on the way to 10 per cent) higher than 10.6 per cent that was expected.
On the back of its second quarter results, which nearly matched those attained in the first quarter, Continental sees itself “on track for another record year.” Commenting on the German tyre and automotive supplier’s performance to 30 June, Executive Board chairman Dr. Elmar Degenhart stated “based on the successful first half of the year, we are confident that we will comfortably achieve the goals we have set for the year. Nonetheless, we must continue to keep a close eye on the uncertainties on the global sales markets, the difficult economic situation in some European Union member states and the slowdown in global economic growth.
Italian brake manufacturer Tarox launched its carbon ceramic ultra-high performance braking range earlier in the year, a product that draws on the company’s motorsport experience extending as far as Formula One. It continues to supply quality replacement products for models such as the Mk2 Ford Focus RS, and though the company supplies all car shapes and sizes, its managing director told Tyres & Accessories that it continues to pursue quality certification as a strategic necessity.
Continental Tire the Americas has begun recruiting employees for its new plant in Sumter, South Carolina. The tyre maker says the staffing process and manufacturing training for the first 150 employees will begin in the first quarter of 2013, and during the first phase of production in late 2013 and early 2014 the Sumter facility will employ around 300 production workers. Around 1,600 people will work at the plant when work is complete and production is in full swing.
To accommodate the company’s growth in Asia, Continental has opened a new research and development centre in Singapore. The facility, which covers a floorspace of some 10,170 square metres, houses around 650 employees from the company’s Tire and ContiTech divisions and the Automotive Group’s interior division. Continental invested S$36 million (£18.4 million) in setting up the new seven-storey centre.
Want to achieve 84 miles per gallon or 2.8 litres per 100 kilometres? Then you need an economical vehicle, efficient driving style – and suitable tyres. Norwegians Knut Wilthil and Hanrik Borchegrevink recently set out to smash the economy record for a series production diesel vehicle on European roads and headed out on a road trip from Helsingfors, near the Finnish capital Helsinki. They chose the Ford Mondeo ECOnetic, fitted with Continental’s ContiEcoContact 5 summer tyres.
Irish delivery company Fegan Transport has fitted cheaper tyres to its 25 DAF tractor units and 50-plus trailers for years in a bid to save money, but less than satisfactory returns on the company’s investment led to a rethink. Having moved back to premium tyres from Continental, the company says performance and life expectancy have increased; arguably more beneficial in balancing the books than the experiment with lower-cost rubber. “We’d used Continental tyres before, and then found that some of the Chinese tyres coming onto the market were cheaper, but it took us two years to realise that this wasn’t actually the best way to go. In some cases we’d taken the tyres off the vehicles after just 40,000km, because we found that they weren’t delivering what we expected,” reveals Martin Fegan, owner of Fegan Transport Ltd.
Yesterday, Korean firm SK Innovation and Germany’s Continental signed an agreement to create a jointly managed company. SK Innovation and Conti will respectively hold 51 per cent and 49 per cent shareholdings in this joint venture, which is being set up with the goal of mutually developing, producing and globally marketing lithium-ion battery systems for cars. This agreement comes half a year after the two companies signed a letter of intent.
Continental has announced the appointment of Steve Howat to the role of general manager in the tyre manufacturer’s Technical Services division, UK and Ireland. Howat joins from Bridgestone, where he held the position of European Training Manager, delivering extensive technical, business and sales training to the company’s customers and staff across Europe. Having joined Continental on 1 June, he will replace respected industry expert Roger Sanders, who is retiring this year after nearly 30 years’ service with the company.
It’s sometimes said that good employees are worth their weight in gold, and at Continental this may well be literally the case. The German tyre maker and automotive component supplier encourages those working at its 126 global locations to submit ideas on how efficiency and cost effectiveness can be boosted, and last year some 310,000 of these employee-driven suggestions were implemented. These ideas, says Continental, saved the company almost 120 million euros.
The Klarius Group ranks sixth in the list of ‘top 10 manufacturers with biggest international sales’ published in The Sunday Times HSBC International Track 200 league table, where the company also achieved 62nd place overall. The league table ranks Britain’s privately owned companies with the fastest growing international sales. It is researched and compiled by Fast Track and was published in The Sunday Times on 8th July 2012. The published figures show 70 per cent of sales being generated outside of the UK, mainly in Continental Europe, with sales growing 58 per cent between 2008 and 2010.
Continental will aim to support its fleet business with the creation of two new independent departments to oversee the areas of Fleet Support and Truck Tyre Marketing across Europe, the Middle East and Africa (EMEA), focussing specifically on its Conti360° Fleet Services. The company has appointed Martin Burdorf to take charge of fleet management, while Barry Guildford will become the new marketing chief. Both will report directly to Herbert Mensching, director of Marketing and Sales Truck Tyres EMEA.
To demonstrate its various solutions for electric vehicles, Continental has converted a bog-standard Renault Megane to a prototype electric vehicle. Around 40 components the company produces for electric vehicles have been integrated into the Megane, including the motor, battery, power electronics, displays and controls, all the peripheral devices for propulsion and charging and – most importantly for us – Conti.eContact tyres. Most of components used are already on the market or are ready to go into production.
Indian manufacturer Metro Tyres aims to significantly increase its share of India’s motorcycle tyre market and is considering entering the passenger car tyre segment after 2015. Managing director Rummy Chhabra disclosed this information to news agency the Press Trust of India while outlining the company’s investment plan for the next few years. PTI has not given any specific information on Metro’s intended activities within the passenger car tyre business, such as the extent, if at all, technology partner Continental will be involved.
Continental Tire will serve as the “official tyre” of 2012 Herbalife World Football Challenge in the US following the signing of a sponsorship deal. Under the agreement, Continental Tire will receive field board signage, end board signage, in-stadium media, hospitality, and category exclusivity at all the championship, which will take place across North America between 18 July and 11 August. This latest deal is in addition to the company’s official status sponsorship of Major League Soccer (MLS). Last year Bridgestone was a sponsor of the event.
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