USW Report Slams CTNA
An executive report recently released by the United Steelworkers in the US outlines what the union refers to as “some of the company’s most stunning failures in the North American tyre market.” 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 its shareholders, including 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 information made public as part of a recent lawsuit shows 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 US 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.