Continental promotes four new tires at dealer meeting in Mexico

CABO SAN LUCAS, Mexico—While it's been notably quiet this year, Continental Tire the Americas L.L.C. explained its reason in the wake of a disruptive 12 months in the tire industry.

According to Bill Caldwell, vice president of sales and marketing for Conti, the tire maker is continuing what it has done in the past to forge a successful business platform: Focus on producing a quality product and partner with distributors "who support our brands and support dealers who want to sell our brands the right way.

"So there's not really an initiative or a trigger or a catalyst for us to change that course right now," Caldwell told a record 375 dealers—including 62 attending the event for the first time—at Conti's 15th annual Gold Trip, held at the Hyatt Ziva Los Cabos resort in Cabo San Lucas.

The General Session, held the morning of March 12, was the main event of the five-day getaway that Conti rewards its top dealers.

Nearly 100 premier dealers spent two extra days in Cabo San Lucas, including a night at the Cabo Wabo Cantina, a popular nightclub and restaurant founded by rock musician Sammy Hagar.

Continental, Caldwell said, builds, develops, designs and market tires. And, he told dealers, he knows what they do best: Sell to consumers.

"So our plan of attack going forward is to remain not a competitor of yours, but a partner of yours and ensure that we support you in the right way," he said. "(We are) making sure we have distributors that support us, and we want to make sure they're successful as well."

Within the last 15 months, the top three tire makers in Rubber & Plastics News' Global Tire Report expanded the wholesaling end of their businesses. Bridgestone Americas Inc. and Goodyear formed a 50-50 joint venture, TireHub, while Michelin North America Inc. formed National Tire Wholesale with Sumitomo Corp. of America.

Continental, meanwhile, continued its strategy of taking steps to boost its brand awareness through its marketing efforts, while also working to increase and improve its product portfolio.

Joe Maher, product manager for passenger and winter tires in the U.S., introduced four tires that Conti will release in 2019: two in the light-truck/SUV/CUV market and two in niche markets. They are:

• Continental CrossContact LX25, a replacement product for the CUV, SUV and light truck market;
• Continental TerrainContact H/T, a replacement tire for on/off road performance for the same vehicle segment;
• Viking Contact7, a winter tire for the sub-compact, compact, mid-size and full-size passenger market and compact, mid-size and full-size CUV and SUV market;
• General G-Max Justice, a product specifically for agencies such as police departments, governmental entities and low enforcement agencies.

The CrossContact LX25 will come in 41 sizes, covering 16- to 22-inch rim diameters, with speed ratings of T, H and V, providing 84 percent market coverage. It is backed by a 65,000/70,000-mile limited treadwear warranty, a 60-day trial period and a six-year limited warranty.

The CrossContact LX 25 will replace the CrossContact LX20, though the LX20 will continue as an OE-exclusive fitment.

The TerrainContact H/T will focus on pickup trucks and full-size SUVs, also covering 16- to 22-inch rim diameter sizes. It also will have 24 metric sizes, including 10 light-truck metric sizes in rim diameters of 17 to 20 inches.

The TerrainContact H/T fills a gap in the Conti portfolio, sandwiched between the TerrainContact A/T and the CrossContact LX25. Both the TerrainContact H/T and the CrossContact LX25 will launch in July.

Orders are being accepted on the VikingContact 7, which the tire maker rolled out previously. The tires begin shipping in August.

Beginning April 1, as a prelude to the release of the G-Max Justice, Conti will become an approved vendor for the National Association of State Procurement Officials (NAPSO). The designation lasts for five years. The tire maker said the product offers longer wear and durability and has been tested with the Michigan State police.

The product is available in six sizes that fit four newer police vehicles as well as two sizes for older vehicles.

Travis Roffler, Conti's director of marketing, highlighted components of the tire marker's sports marketing strategy, including:

• Continued college basketball involvement, that entails new deals with programs at Maryland, Purdue, Xavier, Texas Christian, West Virginia, Auburn and Washington;
• Continued partnership with Dan Patrick, a former ESPN sportscaster who hosts a popular radio show; and NASCAR legend Richard Petty;
• Expansion of the company's professional soccer sponsorships, including the FIFA Women's World Cup and Major League Soccer, which will feature four franchises entering the league within the next three years; and
• New fishing spots with pro fishermen representing the General brand.

Mr. Roffler said Conti's involvement with these sports as well as its sponsorship of IMSA, amount to 16 billion impressions worth $313 million in exposure value.