Continental Tire Targets Growth, Sustainability in Mexico

Q: After separating from AUMOVIO, how has Continental Tire refined its value proposition for OEMs, fleet operators, and aftermarket customers?

A: From a commercial standpoint, the separation has had no impact. In fact, that is precisely why we believed that establishing two separate companies was the best course of action. We have already concluded the AUMOVIO phase, and, as is publicly known, we are currently working on the separation of ContiTech so that we can focus exclusively on tire operations. This allows for greater focus and agility.

Under this structure, Mexico is key for us for two reasons: proximity to the United States and our San Luis plant, which manufactures tires for both the Mexican and US markets. We have significant OE production, and I would venture to say that we work with every automaker. Our goal is to make logistics processes simpler and faster, which also touches upon the issue of sustainability.

Q: In the electric vehicle sector, how do Continental’s engineering teams balance factors such as tire wear, rolling resistance, and cabin noise?

A: All our tires are classified as “EV-ready,” meaning they are suitable for internal combustion, electric, and hybrid vehicles alike. We do not differentiate between these products; instead, we focus on producing a balanced tire for the market that meets the needs of all consumers. That is what we aim to achieve.

Electric vehicles generate higher torque than internal combustion vehicles. However, driving style has a far greater impact on tire wear. The faster one drives, the greater the wear.

Q: Which proprietary technologies or material innovations offer the strongest competitive differentiation? 

A: For the Mexican market, the UltraContact tire stands out because it was developed with Mexico’s specific challenges in mind, such as potholes, poor road quality, and other factors that can damage tires.

This tire features a reinforced design and a compound that allows for greater mileage. We recently launched an UltraContact version for passenger cars and SUVs, as well as another for vans and last-mile delivery vehicles. We have improved the tire to achieve 30% higher mileage and added reinforced sidewalls.

Regarding other developments, we have ContiSilent tires, which contain a sound-absorbing material, and ContiSeal, which automatically seals punctures, allowing the driver to keep going.

All these technologies originate from three major testing centers: one in China, another in Hanover (our headquarters), and a third in Uvalde, United States. In Hanover, we conduct robotic tire testing, replicating road surfaces from anywhere in the world and simulating temperatures from any region we choose.

For us, product testing is absolutely essential to the development process. We test around 10,000 tires annually, and eleven years ago, we introduced a new method for virtual product testing. We also have a simulator in Hanover, developed by Continental engineers in collaboration with one of our development partners.

Q: How has Continental’s manufacturing process changed to incorporate these new technologies?

A: In some cases, the development is entirely new, requiring us to modify what we call the plant’s “toolbox.” This involves using different raw materials, as we are constantly seeking more sustainable options.

We always aim for a gradual evolution, moving step-by-step, to avoid disruptions and ensure we can continue manufacturing our other products. We have highly flexible plants, and our plant managers and engineering teams are extremely professional, which simplifies the training of workers and operators.

Training processes are constantly in place, whether for new procedures or to improve existing ones. This is how we ensure the quality standards we maintain at Continental.

Q: What role does Continental play in the evolution of mobility and the adoption of sustainability?

A: By 2030, we aim for 40% of the materials incorporated into our processes to come from sustainable and renewable sources. We have set a goal to minimize waste at our plants, and we have already received recognition for our sustainability efforts. Our plant in Portugal, for instance, is already a zero-emission facility; this means all its energy is either sustainable or offset by carbon credits. At another of our plants, we developed a wind farm to meet production needs.

I believe we all have a strong environmental conscience, but when it comes to cost, we sometimes resist change. For our part, we do not distinguish between products based on varying degrees of sustainability. We are working to make our products 100% sustainable and to incorporate sustainable raw materials on a scale that allows for continuous production, while considering available suppliers and keeping the impact on product costs to a minimum.

There is already pressure from the automotive industry and initiatives from companies like Continental that prioritize sustainability, but we are only just beginning to see legislative changes in Mexico. Companies share a common goal, and I believe the government is also becoming more aware of the issue. The reality is that we are starting from scratch, so bringing about this kind of change takes time.

Q: How has the growing presence of Chinese tire manufacturers affected pricing dynamics and sustainability goals within the tire industry?

A: We do not limit ourselves to Mexican standards alone; we work to a higher standard to ensure alignment with global regulations. This approach defines our premium positioning and product differentiation, and there is a segment of consumers that values ​​this distinction. Those are the consumers we serve.

Q: How are you integrating sensors and telemetry into your tires to improve performance, and how are you managing the data collected from these tires?

A: We have been incorporating sensors into our tires for many years. These products are not as common in Mexico due to price differences; we offer the same tire with and without sensors, but we primarily import the non-sensor versions into Mexico.

These products have found their strongest niche in the industrial sector. A stationary vehicle in an industrial setting represents a significant financial loss for the company. Our sensor offerings in this area have a significant impact on our customers’ bottom line, which is why they seek out our products.

Q: What are the non-negotiable operational and market share priorities for Continental in this region?

A: Together with our business partners, we aim to be present in high-value markets, markets where we can offer service and differentiation. We want to continue growing in the Ultra-High Performance (UHP) tire segment, as well as in the van and last-mile delivery vehicle sectors. There are segments we view as niche markets, while in others, we aim to be the leaders.

Mexico is a key market for us, and we intend to continue our growth there. Currently, one of the main challenges we see involves the bilateral agreement between Mexico and the United States. Mexico’s economy is closely linked to that of the United States, so it is obviously important to have an agreement in place that provides long-term stability and security, thereby encouraging further investment in Mexico. The more investment there is, the more business there will be for everyone, not just for Continental.