Conti Considers Price and Dividend Increase
Continental AG Chief Executive Manfred Wennemer, has admitted that Conti is considering paying larger dividends and also giving out a special dividend for the 2006 business year in order to reduce its cash reserves.
Mr. Wennemer, when interviewed by the Sueddeutsche Zeitung, also stated that Conti will increase the price of its replacement tyres early in 2007. Any new OEM business the company acquires in Europe will also be charged at a higher rate.
The company plans to launch a low cost range of tyres in the summer of 2008, according to Wennemer, adding that Conti has decided upon this approach in order to retain market share in the face of low price Chinese and Korean tyre manufacturers.