HANOVER, Germany (March 30)—Continental A.G. is analyzing "major restructuring measures" in its North American passenger tire business because of increasing price pressures brought on by the automotive industry's rebate programs.
Conti declined to be more specific about restructuring, but Chairman Manfred Wennemer, speaking at the release of the firm's fiscal 2003 results, said the company expects the consumer tire business in North America to break even this year on an operating basis, reversing losses of the past few years.
Conti did not specify the size of its losses in North America last year, saying only that "extremely good results" in Europe more than offset the losses in the North American Free Trade Agreement region, where in 2003 the firm reduced capacity at its Mayfield, Ky., plant, cut administrative staff and began outsourcing tire logistics.
Conti also achieved a 25-percent increase in original equipment truck tire business, while replacement business volumes were down slightly from 2002.