Continental to Increase Prices at Start of 2007 - Tire Review Magazine

Continental to Increase Prices at Start of 2007

(Clacton, U.K./Tyres & Accessories) Continental AG has spoken of plans to increase passenger car, SUV and light truck tyre prices across Europe.

A Continental spokesperson in Hanover declined to give further details of the price rise, but explained that the move had been forced upon the manufacturer by consistently high raw material prices. Continental’s raw material costs are expected to total 300 million euros this year.

Financial analysts responded positively to the news. “Even if we do not believe that further price increase will be successful, we read this news as positive. It tells us that Continental, like probably the rest of the industry, will try to keep for themselves the recent drop of raw material prices, mostly natural rubber,” said one Deutsche Bank report.

The result is that, rather than a hindrance, 2006’s high raw material prices could end up helping Continental and other large manufacturers. (According to Deutsche Bank, Michelin will have a raw material bill of around 800 million euros in 2006.) The analysts describe the effect as “a significant tailwind” that could have a 100 million euro positive impact on EBIT for Continental (+6%) and could positively impact Michelin’s pre-tax profits by 300 million euros or 23% in 2007.

You May Also Like

The commercial tire market is cautiously recovering from 2023 challenges

To better understand commercial tire expectations for the remainder of the year, Tire Review recently sat down with Pierluigi Cumo, VP of B2B products at Michelin North America.

Michelin-Commercial-Truck-Tires-1400

Despite a tough commercial tire market in 2023 due to overstock and and the effects of a rubber-banding supply chain, some tire manufacturers are expressing a cautious optimism for stabilization and gradual recovery through the rest of 2024 and into 2025. North American fleets are focusing their efforts on operational efficiency and profitability amidst lower shipping rates.

SRNA introduces new field engineer manager

Chariarse has extensive experience in his field, working as a commercial truck field engineer in the tire industry for the past 21 years.

SRNA-Eduardo-Chariarse
Bridgestone to debut Bandag Virtual World Tour at WasteExpo 2024

The Bandag Virtual Plant Tour is an internet browser-based experience that provides a step-by-step walkthrough of Bandag’s retreading process.

Bandag-virtual-tour-Bridgestone
Giti Tire Manufacturing awarded by Chester County Chamber of Commerce

Giti Tire said it has been a supporter of education, organized farmer’s markets and participated in community food drives.

Giti-Chamber-Award
Is the future of TPMS technology blue(tooth)?

TPMS hasn’t changed much since it was mandated in 2007, but Bluetooth sensors could be a welcome update for drivers and shops.

Bluetooth-TPMS-1400

Other Posts

Hunter HD Elite Wheel Balancer: Handling large custom wheels

The Hunter HD Elite Wheel Balancer can accommodate large custom 4×4 wheels with ease.

hunter-balancer-dropfit-1400
Atturo Tire secures Cubs Radio sponsorship for 2024 season

In addition to the in-game sponsorship of stolen bases, Atturo will run audio commercials during game day broadcasts throughout the season.

Cubs-Atturo-sponsorship
LT tire segment trends and growth expectations

There are some key trends dealers need to be aware of across the different LT tire categories when selling to customers.

TR-Continental-lttires
RNR Tire Express opens nominations for 2024 Mother’s Day Giveaway

This year’s event includes $100,000 in prizes, as well as a new 2024 Buick Encore for one select nominee.

RNR-Mothers-Day-giveaway