CTNA May Have Broken Even in 2007 – Wennemer

The chairman of Continental’s executive board, Manfred Wennemer, has said the company’s CTNA operations in the US may have broken even in 2007; if so, this will be the first time in over a decade that CTNA has entered into the black.

“Everything is not finalised, and it’s still too close to tell, but I am hoping we did it,” commented Wennemer to Dow Jones Newswires. During the last two years Conti’s US tyre operation has attempted to reduce costs, mainly through plant closures and changes to employee health care benefits. To remain competitive as a producer in this region, strategic spending has also been implemented; as much as US$100 million was earmarked for upgrades to CTNA’s Mount Vernon facility, where the introduction of more than 500 new or expanded tyre products have been scheduled for introduction between 2006 and 2009.

Wennemer also anticipates that at least 50 new dealers will join the company’s US network this year, bringing the total to more than 600. “We do expect to see growth in the market despite the economy,” Wennemer said.