Continental Buys Mexican Tire Business

Germany’s Continental, maker of Uniroyal and General tires, has purchased the tire business of Mexican industrial group Grupo Carso in a move to tap growing production by foreign auto makers in Mexico. Grupo Carso, Mexico’s largest tire maker, will get a 19.4% stake in Continental’s U.S. division, Continental General Tire, plus $18.9 million in cash for its tire business. Continental General last year had $1.4 billion in revenue. Continental, the world’s fourth-largest tire maker, is seeking to expand outside Europe, which accounted for 75% of its 1997 sales of $6.7 billion. Grupo Carso’s tire unit had 1997 sales of $328 million. The purchase includes two tire factories and a conveyor-belt plant.