Continental General Tire

Higher prices for rubber and oil let the air out of earnings reported Wednesday by tire makers Continental and Bridgestone. Both companies reported smaller profits in part because of the higher prices they had to pay for raw materials, along with charges related to the closing of plants in the United States. Tokyo-based Bridgestone Corp., which is vying with France's Michelin to be the world's biggest tire maker, said it earned 50 billion yen ($427.

In what might be the largest verdict involving a tire blowout, a Los Angeles jury ordered Continental General Tire on Friday to pay damages of nearly $55.4 million for a defect that caused a rollover crash that left a young woman a quadriplegic. After eight days of deliberations, the jury in Los Angeles Superior Court awarded the damages to Cynthia Lampe, 33, who was paralyzed from the neck down in the June 1996 crash, and her mother and father.

Continental General Tire plans to announce a recall today of the 16-inch tire that was standard equipment on the 1998 and 1999 model year Lincoln Navigator. Continental and Ford Motor Co., which makes the Navigator, confirmed that they will brief federal authorities on the tire's warranty and claims data this morning. A source with knowledge of the situation, who spoke on condition of anonymity, said a recall is expected to be announced after the meeting.

Continental General Tire Inc. may have understated the extent of a tire failure problem similar to that of Firestone, which recalled 6.5 million tires for safety concerns, according to a published report. The Chicago Sun-Times reported that the U.S. National Highway Traffic Safety Administration opened an investigation in March 1993 after receiving five reports of fatal accidents involving General Tire models TG52S, Ameri-Way and Ameri-Tech.

Amid growing concern that auto and tire companies have failed to disclose critical safety hazards, lawyers for accident victims are accusing Continental General Tire Inc. of deceiving government investigators about possible defects in tires linked to a series of deadly rollover crashes.

Freda Kay Hall died in the crash of a Ford Bronco II that flipped over after the tread peeled off one of its General GT52S tires. A 48-year-old Missouri schoolteacher, Hall was visiting Atlanta for the Olympic Games at the time of her death in August 1996. Her family is now pressing a lawsuit in Georgia against Ford Motor Co. and Continental General Tire Inc.

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.