CEO: ContiTech, Tires businesses supporting Continental now

Hanover, Germany – Continental AG’s rubber & tire businesses are supporting the German group at the time of automotive slowdown and Covid difficulties, according to chief executive officer (CEO) Elmar Degenhart.

“We can once again rely on one advantage this year. We are not as susceptible to the ups and downs of the automotive industry everywhere,” according to a transcript of Degenhart’s speech due to be made at the German group’s annual shareholders meeting 14 July.

The ContiTech and Tires business areas, Degenhart will say, serve other markets with different cycles and “their success is supporting us now.” 

In Tires, Conti profits from business with consumers, while ContiTech serves entirely different industries such as food, agriculture, rail transport and shipping. 

According to the CEO, the quarter ended 30 June was the weakest quarter in history of automotive industry since 1945, but production figures are rising slowly.

“Since 2017, more than 25% fewer vehicles have rolled off the line. And there will not be a fast recovery, neither in Europe nor in North America,” Degenhart will point out.

Despite a slow increase global car production, Degenhart does not expect to see the 2017 levels until after 2025 "at the earliest." 

The CEO anticipates that the third quarter will be “very difficult” for the German group, although sales will be higher than second quarter.

Continental will holds its shareholders meeting virtually at 10:00 on 14 July.