Continental adjusts prices for car tires in response to very high price level for natural rubber

In the European replacement market, prices for summer tires for cars are set to increase by an average of 5%

The new prices will come into effect in all countries until 1st January 2011

Hanover, 11th October 2010. In response to the currently very high price level for the main types of natural rubber used in the production of car tires, Continental AG will be increasing the list prices of summer tires in the European replacement market by an average of 5%, effective as until 1st January 2011. At well over US$3 per kg, the prices for natural rubber are now at a historic high. The planned price rises affect all the car tire brands belonging to Europe's market leader. "We are currently working on implementing this price increase right across Europe in order to offset at least some of the substantial increases experienced this year in the cost of raw materials. We opted for January 2011 as a date so that our customers can now focus their attention on the winter tire business which is so important for us all" explained Dr. Hartmut Wöhler, Head of Marketing and Distribution for the Car Tire Replacement Market in Europe, the Middle East and Africa (EMEA).

In Germany too the average price rise of 5% will apply to all car tire brands belonging to the Continental Group and will be effective from 1st January 2011.

Natural rubber accounts for over 40% of a tire, making it one of the most important raw materials in tire manufacture - even though Continental is working vigorously to find alternatives to gradually replace it, without having to sacrifice performance characteristics in the process.