CHARLOTTE, N.C. (March 26, 2004)— Continental Tire North America Inc. is working to expand its share of the original equipment market in North America by nearly a third, with most of the additional units coming primarily from the firm's plant in Mexico.
Conti disclosed the plan, to boost its OE share to 20 from 15 percent, in a recent employees' newsletter. If realized, the growth would represent up to 3.5 million additional units. To fill this void, Conti said it would ramp up daily production at its San Luis Potosi, Mexico, plant to 27,000 units from 15,000.
Conti declined to go into detail about which OE customers are targeted for increased business.
Conti currently supplies Continental- and General-brand OE tires in the U.S. and Canada to BMW of North America, Ford Motor Co., General Motors Corp., Mercedes-Benz of North America, Nissan North America Inc., Toyota Motor Manufacturing and New United Motor Manufacturing Inc., the GM-Toyota joint venture. It also supplies Volkswagen A.G.'s assembly plant in Mexico.
The plan ties into Continental A.G.'s recently divulged global investment program to add as much as 7.7 million units of new capacity in low-cost countries, primarily to serve the North American market.