USW Report Slams CTNA

The USW claim that the report, titled ’20 Years Asleep at the Wheel,’ is based upon market and industry research and interviews with independent tyre dealers, and zeroes in on “major management blunders” that are reported to have cost shareholders hundreds of millions of dollars.

The report discusses several issues the USW alleges the company did not fully disclose to Continental AG shareholders, including what it claims is an overemphasis on the OE market, failure to develop an effective tyre dealer network, ineffective marketing strategy and failed sourcing and supply strategy.

The USW claims that it made the information public as part of a recent lawsuit shows that management errors in these areas have cost shareholders as much as $1.2 billion during the last five years.

The report concludes by calling into question Continental’s future viability in the U.S. market after “20 years of mismanagement.” Copies of the report have been forwarded to members of Continental AG’s Supervisory Board, however at this stage the company has issued no official response.

If you’re a shop looking to sell summer tires, it’s important to know that customers looking for these tires have very specific needs. Let’s talk about why, before recommending summer tires, you need to fully understand customer performance requirements.

Unlike all-season or all-terrain tires built for diverse driving conditions, UHP summer tires are designed with one priority: dry and wet traction for performance driving. Lateral and longitudinal grip in dry and wet conditions are also important, which is achieved through optimized contact patches, high silica tread compounds and circumferential grooves to channel water. Generally, UHP summer tire tread design features large blocks and fewer grooves for more road contact on dry surfaces. The grooves are designed to channel water away from the tire, reducing the risk of hydroplaning on wet roads.