Analysts: Brazil Plant Will Help Conti Save 100 million

(Clacton, U.K./Tyres & Accessories) 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.

Published: April 11, 2006

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.

In addition to the previously reported opening in Brazil, Continental AG has recently expanded capacity in Malaysia, where the company is aiming to produce 6 million units by the end of 2006, rising to 8 million in 2008. When they were open, Continental’s Mayfield and Charlotte plants produced 5 and 8 million tyres respectively.

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.

By David Sickels

David Sickels is the Editor of Tire Review. He has a history of working in the media, marketing and automotive industries in both print and online.

Published: May 1, 2024

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.