Rubber in the establishment of overseas factories and, in some cases, rubber plantations. Nonetheless the firm lagged behind Dunlop, Michelin, Pirelli, and U.S. An export trade was built up with the establishment of marketing subsidiaries in Britain, Denmark, Sweden, Romania, Italy, Norway, and Australia between 19. Such profitable growth also encouraged regular extensions of the factory and new investment. In the same year capitalization was raised to 12 million marks while dividends averaged 43 percent from 1900 to 1913. Continental ’s workforce expanded to 12,000 by 1913. The effectiveness of Continental ’s response to the demand for car tires confirmed its leading status in Germany, particularly as Dunlop ’s German subsidiary failed to move into the new sector. This sequence of product innovations completed the fundamental advances in motor tire design, although Continental continued to refine and improve its tires to 1914. Four years later the detachable rim was adopted to simplify the mounting of tires. The previously smooth tires, an innovation in which Continental was slightly ahead of the U.S. In 1898 Continental designed and began to manufacture a pneumatic tire, a significant technical accomplishment given the larger tires and greater weight and forces involved in automobiles. During the late 19th century the prominence of German engineers in the early car industry created an additional market for solid tires, and there was also a growing demand for motorcycle tires. The next phase was the development of the automobile tire business. Responding to Increased Demand for Automobile Tires: 1890s to 1900s The establishment of a German factory by Dunlop in 1892, however, provided a potent rival. Continental ’s leading position was suggested by its 65 percent share of a market-sharing agreement for cycle tires with Hannoverische Gummi-Kamm in 1894. This growth was primarily domestic and was supported by the development of agencies throughout Germany. The workforce expanded from 600 to 2,200 between 18. The firm ’s capitalization was increased in 1897, doubled again two years later, and totaled 3 million marks by 1901. Continental ’s gross profit rose from 485,821 marks in 1891 to 1.8 million marks by 1898, and dividends were 55 percent annually between 18. The 1890s proved more profitable than the previous decade. Although less innovative than Dunlop or Michelin, in the 1890s Continental was the first German producer of pneumatic tires. More significantly, in 1892 Continental commenced the manufacture of pneumatic tires for bicycles to cater to the growing interest in cycling. In the following decade, however, the firm became highly prosperous and dividends increased from 7 percent of nominal ordinary share values in 1880 to a constant 27 percent between 18.Īn expanding demand for industrial rubber goods was accompanied by the introduction of cushion tires under a patent from the British firm Macintosh. The firm ’s product range consisted of waterproofed fabrics, footwear, and solid tires, but soon a general line of industrial rubber goods, medical supplies, and sundry consumer goods, such as balls and toys, was added.ĭuring the 1870s Continental developed slowly dividends were first paid in 1875 when additional capital was raised. Continental was promoted by a group of financiers and industrialists with established interests in the rubber business. It was by no means the first German rubber company several small firms had been active in Hanover in the previous decade. The Continental-Caoutchouc und Gutta-Percha Compagnie (Continental) was established in Hanover in 1871, and the city remained the center of the firm ’s operations. Continental Originates As a Rubber Goods Manufacturer: 1871 One of its most significant acquisitions came in 2001 when it bought a controlling interest in DaimlerChrysler ’s Temic auto-electronics business. After weathering considerable economic pressures in the early 1990s, the company began making significant strides to secure a competitive position in the more lucrative arena of auto components. By 1991 Continental was the fourth largest tire producer in the world. Long established as the leading tire producer in Germany, Continental AG attained international prominence through a series of major acquisitions in Europe and in the United States starting in 1979. NAIC: 326211 Motor Vehicle Tires Manufacturing 336322 Other Motor Vehicle Electrical and Electronic Equipment Manufacturing Incorporated: 1871 as Continental-Caoutchouc und Gutta-Percha Compagnie
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