Hippe said the new tires and promotional campaign are part of CTNA’s strategy to help its U.S. passenger tire operation regain marketshare and make a profit this year, despite rising raw material costs.
The California ad campaign will feature Continental brand tires on BMW, Jaguar and Mercedes convertibles and sport the new slogan, "Our fingerprints are all over the world’s finest autos." The campaign will consist of print ads and television commercials.
CTNA will also introduce a 24-inch SUV tire under its General brand as a way to reposition the General brand as a youthful and stylish brand.
Earlier this week, CTNA announced that it would end production at its Charlotte, N.C. plant for an “indefinite” period on July 7. The tiremaker had previously stated that a potential shutdown would occur in September if the plant was not able to reduce operating costs by $32 million annually. Negotiations between Continental managers and USW leaders did not result in a new contract. The previous union contract expired Apr. 30.
In early April, parent company Continental AG announced its intent to buy Motorola Inc.’s automotive electronics business for $1 billion in cash as part of the company’s strategy to expand into non-tire markets.
"Everything we do, our planning, is related to making the company profitable," Hippe told the local newspaper. “Each of the company’s units must be profitable. How can we explain (that) a unit has losses? We cannot afford it."
