Continental Challenges Auto Industry: Do a Better Job Educating Consumers About Available Safety Equipment - There Is No Better Place To Do It Than The Auto Channel!

Publishers Note:

We couldn't agree more...for almost 7 years we have been preaching to the powers that control automotive advertising and communications budgets, that The Auto Channel on the Internet provides the perfect venue to provide consumers with much needed, and wanted infomation.

But our thoughts have apparantly fallen on deaf, or just dumb ears. Maybe now with a heavyweight like Continental Teves preaching also, the industry will wake up.

How difficult is it to understand that a consumer who is on-line looking for and at automotive infomation, will be happy to learn about the new and possibly lifesaving technologies now installed in their vehicles.

DUH!

TRAVERSE CITY, Mich., Aug. 7 -- "Despite major advances in safety equipment to avoid crashes and protect occupants when crashes occur, we have not done the job as an industry telling consumers and others about these strides," according to William Kozyra, President and CEO of Continental Teves, a leading supplier of automotive safety systems.

"We are on the threshold of a true revolution in safety technology, but it all means nothing at the end of the road if the consumer doesn't understand, accept and adopt its value." He called on auto manufacturers and suppliers to join forces to inform consumers, regulators and others.

Speaking today at the University of Michigan Management Briefing Seminars, Kozyra said, "For the most part, new car and truck buyers -- and dealers for that matter -- simply are not aware of the innovations we've brought to market."

"Suppliers have spent billions of dollars developing and integrating systems that are truly phenomenal in helping reduce injuries and saving lives," Kozyra said. "But what good are those systems if the people in the dealer showroom or on the auto manufacturer's marketing team don't understand them? What good are they if regulators don't understand them and give them the nod?"

Playing off the Briefing Seminar's theme of "Fast, Fun and Scary," Kozyra characterized the situation with respect to consumer understanding and demand for safety technology as "beyond scary," and announced three immediate actions to improve knowledge about available safety systems:

Continental Teves and Robert Bosch Corporation, another major player in automotive technologies, are entering into an alliance for a new public education program on auto safety, with each company putting in a million dollars in seed money for the effort. Continental Teves will assemble a technology symposium so safety officials and industry experts can examine ways to facilitate the adaptation of safety technology to the marketplace. The company's Auburn Hills, MI technology center will offer educational seminars for federal regulators, reporters and others. Kozyra challenged other companies to join the effort. "We all have an obligation to keep our industry on the leading edge and ensure the maximum possible safety for our customers. We have a unique window of opportunity. Right now. Today. Shame on us if we fail to seize the moment."

He explained that safety technology is moving fast, faster than anyone envisioned a decade ago because of the electronic integration of various safety components and systems, such as anti-lock brakes, stability enhancement, and chassis mechanical and control systems. Yet, technologies that are already available and others in the development pipeline are not being marketed aggressively to prevent crashes, save lives, and reduce costs.

He pointed to vehicle rollovers as an example. The continuing popularity of SUVs and other light trucks, with their higher centers of gravity, account for 26 percent of all serious and fatal injuries in crashes. Rollover prevention is a priority with the National Highway Traffic Safety Administration (NHTSA) and many other safety organizations. Yet, many consumers are unaware that stability control systems are available today, and hold much promise of preventing a rollover from occurring and helping handle other out-of-control situations.

"At Continental we have Electronic Stability Program (ESP) that can help prevent rollovers and maintain control. Competitors have similar systems. It's available. It's out there. It's simple but effective. Auto writers rave about it. In fact, we already have successor technology that's even more sophisticated. But stability control is not widely understood by the retail customer in this country. Most don't know to ask for it when they walk into the new vehicle showroom."

"Historically, there was general agreement among regulators, safety advocates, and the auto industry that 'automotive safety' meant a combination of actions. There were crash avoidance measures to prevent crashes from happening, and crashworthiness measures to protect occupants once a crash sequence begins. But somewhere in the evolution the focus shifted solely to the latter. In recent years, crash protection for occupants -- seat belts, air bags, roof crush, have been almost the sole focus. These are critical safety issues. But so is preventing crashes from occurring in the first place," Kozyra said.

He challenged the entire auto industry to help bridge the "technology knowledge chasm." As a first step, he urged the industry to agree on common language for safety systems so it's easy for dealers to explain and for consumers to understand.

"Stability systems, for example, currently are marketed under many different brand names by auto manufacturers. Don't get me wrong: I think it's crucial for the OEMs to develop brand equity in their offerings, but I also think brand equity will be enhanced, and lives will ultimately be saved, if we all agree on a standard nomenclature for the basic technology and aggressively sell it as safety enhancing equipment. With all the brand names, the public isn't getting the message that this is value added safety technology that works. Let's make it simple so the customer can tell the salesperson, 'I want electronic stability control on my new vehicle.'"

Kozyra also challenged consumer groups and others that are engaged in motor vehicle safety to do their part to better educate consumers, rather than scare them. "What if instead of all the anti-SUV and rollover hysteria they whip up, they used their bully pulpits to truly educate the consumers?" He also encouraged the news media to learn more about available safety technology and report about it.

Continental views safety as its core business, and especially safety systems that connect drivers to the road. The company develops integrated chassis systems that help manage vehicle dynamics -- the interaction between tires, brakes, steering, electronics, and suspension systems -- and is the only company that has competency in all of these areas.

Continental Teves, headquartered in Frankfurt/Main Germany, is a unit of Continental AG, Hanover, Germany. With 2001 sales of approximately $10 billion (US), Continental is a world leader in the design, development and supply of critical brake and chassis systems that contribute to driving safety and comfort. Continental Teves' North American component is headquartered in Auburn Hills, Mich. For additional information, visit these websites: www.conti-online.com and www.contitevesna.com .