Conti Chief Sees North American Market Rebound

Continental AG chief Manfred Wennemer expects the North American tire industry to pick up this year, even though the industry still faces unstable and rising raw material costs. In an interview with Dow Jones during the ongoing North American International Auto Show in Detroit, Wennemer also said Conti is still interested in acquiring Goodyear’s engineered products group and certain portions of Delphi Corp.’s business.

From Tire Review

DETROIT — Continental AG chief Manfred Wennemer expects the North American tire industry to pick up this year, even though the industry still faces unstable and rising raw material costs.

In an interview with Dow Jones during the ongoing North American International Auto Show in Detroit, Wennemer also said Conti is still interested in acquiring Goodyear’s engineered products group and certain portions of Delphi Corp.’s business.

Wennemer told Dow Jones that North American tiremakers have succeeded in reducing local capacity and production costs and that raw material costs are sliding a bit. He said he expects 2007 to be a better year for tiremakers, primarily because miles driven has remained steady even in the face of high gas prices, and that cash-strapped consumers who deferred tire purchases in 2006 will be looking for replacement units this year.

"We do see there is some demand for the market that was not satisfied in 2006,” Wennemer told Dow Jones.

Continental has had no discussion with Goodyear, he said, due to the now ended strike, and while Conti remains interested in some aspects of Delphi, the two sides have had no talks.