Traction Action: Continental’s Formula for Future Tire Mobility

🚛  What if your tires could think for themselves? Tom Fanning, former VP – Head of U.S. Truck Tire Market at Continental, shares how smart tire tech and sustainable solutions are driving the future of transportation.

Featured on:

• Tomorrow's World Today - S4E14 – The Tires of Tomorrow 
• Are Dandelions the Future of Tires?

Learn more about this topic:

• Continental Tire Partners with Universal Technical Institute
• How to Prepare Your Car for a Road Trip
• 5 Ways to Make Your Car More Sustainable

Transcript

(0:01) Welcome to the Tomorrow's World Today podcast. (0:05) We sit down with experts, world-changing innovators, (0:08) creators, and makers to explore how they're taking action (0:11) to make tomorrow's world a better place for technology, (0:14) science, innovation, sustainability, the arts, and more. (0:19) On this Archive episode, host George Davison, (0:23) who is also the host of Tomorrow's World Today (0:25) on the Science Channel, sits down with Tom Fanning, (0:28) former VP, Head of U.S. Truck Tire Market at Continental Tire.
(0:32) Tom discusses his non-linear career path at Continental, (0:36) emphasizing the importance of curiosity in STEM education. (0:39) He also touches on the future of connected tires and autonomous driving. (0:44) Welcome, Tom.
(0:45) Thank you. Glad to be here. (0:46) Well, maybe we should start off with a little background of, (0:50) what is Head of U.S. Market Truck Tires? (0:53) That sounds like a pretty important title.
(0:55) Well, it's a fun title. (0:58) Continental is one of the largest automotive suppliers in the world, (1:01) but we're also one of the largest tire manufacturers in the world. (1:05) So, as you probably know, there's a lot of different types of tires, (1:09) passenger, commercial vehicles, specialty, agricultural.
(1:13) So, my responsibility is for the U.S. market for our truck tire segment. (1:17) I see. (1:17) So, is that something that you started off with as a dream for your work (1:23) when you were young, or did you gradually fall into this direction somehow? (1:28) It was kind of a non-linear track, I would say.
(1:31) So, I started off in high school thinking I wanted to be a race car driver, (1:35) an automotive mechanic, (1:36) and that somehow evolved through some time in the military and finishing college. (1:42) Actually, my first job was in human resources, if you can believe that, (1:46) and then working for several dealers, both on the passenger side (1:50) and on the truck tire side, and eventually, 21 years ago, coming to work for Continental. (1:54) That's really nice to hear.
(1:56) So, what we're saying is that it wasn't a direct, straight path to where you are today. (2:02) Absolutely not. (2:03) When I graduated university, (2:06) I never thought I would be responsible for the U.S. market for truck tires for Continental, for sure.
(2:11) But here we are. (2:12) But here we are. (2:14) So, maybe we can walk it back a little bit (2:17) and try to identify some of the, let's say, fun spots or challenging spots when you were younger.
(2:23) Because when we were younger, we always had these big dreams, (2:27) and we think it's going to be a straight shot, but that's if we have a dream. (2:30) Some kids don't know what they're doing, right? (2:32) That's right. (2:33) Did it all kind of start in your head in high school? (2:35) Or maybe, did you go back to middle school? (2:38) Where did it all start? (2:39) I would say it was probably even earlier than that.
(2:42) I was the kid that always took things apart and tried to put them back together (2:46) and had kind of this natural mechanical inclination, you would say. (2:51) And then that attached itself to automobiles and messing with cars and working on cars (2:58) and then the aspiration to be a mechanic and then thinking, (3:01) okay, maybe there's something better. (3:04) And I think that evolution was probably during high school (3:07) that maybe I thought, okay, let's do something different than being a mechanic, (3:12) which is a noble profession for sure.
(3:14) But then I went to college, spent some time in the military, (3:19) kind of got my head adjusted there on a different track (3:23) and then went out and took that passion that I had for mechanical aptitude, (3:28) starting out in college in engineering and eventually finishing in business, (3:33) and said, okay, how do I apply that to something I'm passionate about, (3:36) that I love, that I really enjoy? (3:39) And that's how I found the tire business. (3:41) Very interesting pathway that you've found. (3:45) I'm kind of curious.
(3:47) You said you started off with taking things apart. (3:51) And I think that's a blessing if you have somebody when you're younger (3:55) that says it's okay to take something apart and kind of try to figure it out, right? (4:02) Right. (4:03) When we were younger, we used to do the same thing.
(4:05) And our favorite day was junk day. (4:09) Back in the old days, people would go in their house (4:12) and anything they wanted to get rid of, they'd set it out on the corner (4:15) or out by the street and they'd come and get it. (4:18) Well, that was our go-grab stuff that's really kind of cool.
(4:22) And then we'd start tearing into it and say, how does that work and why? (4:26) And then somebody finally said, hey, can we put it back together again? (4:29) That was a whole difference. (4:30) That was another challenge. (4:31) I got more in trouble for not being able to put it back together (4:34) than I did for taking it apart.
(4:37) Yeah, if you take the wrong thing apart at the house, (4:39) you know you're going to get in trouble, right? (4:41) That's true. (4:42) But the whole idea of just taking things apart is such a wonderful way (4:48) to softly find your way into the field of engineering and making. (4:54) And it's interesting that you're bringing it up in this podcast.
(4:57) Yeah, I think the experimentation part is the important part, right? (5:02) Taking it apart, determining in your young mind how it works, (5:06) which probably most likely you have no idea how it works, (5:09) but just that experimentation and curiosity to see how it comes apart (5:15) and goes back together. (5:16) That was always the draw for me. (5:18) Wonderful.
(5:18) Well, that's a good start. (5:20) So let's just pivot off of that. (5:22) How important would you say STEM-based classes are (5:26) for someone interested in pursuing a career at your company? (5:30) You know, that's a really good question, (5:33) because obviously we have tens of thousands of engineers working at Continental, (5:38) and we have chemists, and we have mathematicians and computer programmers.
(5:44) So there's a ton of work in the STEM industry. (5:46) I would say it's not critical, but it's an extremely important part. (5:52) And I think that also what's important to talk about is people get confused (5:58) that they think they pick STEM and they're going to stay in STEM.
(6:01) And I think I'm an example of someone that started out kind of in a STEM (6:05) and an engineering background and pivoted over to the business side. (6:10) And we've had people at Continental pivot the other way. (6:13) So they came in maybe in a traditional sales and marketing position, (6:17) and now they're sitting in product management or something like that.
(6:20) So I think it's important to have an open mind. (6:23) STEM is obviously important for a large manufacturer like Continental, (6:28) but it's not completely critical to having a job there. (6:31) Interesting.
(6:32) Right, so we have in most companies, you do have somebody's in an R&D lab (6:39) trying to figure out the future. (6:40) You need some technical folks there, some marketing folks. (6:43) And then maybe on another side, less creative.
(6:46) It's the numbers. It's organizing the math. (6:49) It's trying to figure out budgets and keep things moving on time.
(6:52) So somewhere in that world. (6:54) And you can move around once you get inside the organization. (6:57) Absolutely.
(6:57) And we have, you know, just even in my team, (7:00) dozens of examples of people that came in in a very traditional career path (7:06) and then ended up because they were curious and they wanted to explore (7:10) and they wanted to find a new path, (7:11) potentially you find them in a completely different discipline (7:15) from where they came in from. (7:16) Interesting. (7:17) And so in order to move like that inside Continental, (7:20) is it safe to assume that if you're committed to your work (7:26) that you build trust with those around you (7:29) and it's easier to move through the organization? (7:32) So good work ethic, good contribution to whatever the job is (7:37) kind of opens up a doorway, doesn't it? (7:39) It does.
(7:40) We talk a lot about our values and how values create value. (7:44) And so one of those values is freedom to act. (7:47) And so that's really important for us.
(7:49) And it's exactly what you said. (7:51) If you have the right work ethic, if you have the curiosity, (7:55) if you have the imagination, (7:57) someone's most likely going to give you the keys to win. (8:00) And so you can go from one position to the next (8:03) and take that feedback and move forward.
(8:05) Isn't that great? (8:06) You know, that's one of the blessings about, you know, (8:09) organizations that have been around quite a long time (8:11) is that they have systems. (8:13) And they know they need young people coming up (8:16) after the ones that are in there now. (8:19) And so it's part of a process.
(8:22) You do want to welcome in new people, the younger folks, (8:25) and then train them up. (8:27) Because eventually the older folks like us, (8:29) we're going to move along (8:31) and we have grandparent duties to do eventually, right? (8:35) Exactly. (8:35) I mean, you know, this is our 150th year being in business.
(8:39) And so it's interesting when you talk about the automotive world (8:43) or the tire world (8:44) or whatever part of Continental you're talking about, (8:47) there's no academic training in that. (8:50) And so it's important to understand (8:51) you're going to receive the building blocks (8:54) to be successful in school (8:56) and moving through middle school and high school (8:58) and college and even postgraduate work, (9:02) but you're really going to start learning when you go to work. (9:06) And I think a lot of young people forget that.
(9:08) They think school is somehow over when you're finished, (9:12) but that's really when the learning begins. (9:15) And so we have tons of processes to support that learning. (9:19) That's great.
(9:20) You know, I think it makes life interesting too. (9:22) A life of learning is an interesting life. (9:24) And by getting in there and doing it (9:27) and seeing the ramifications of your contribution inside an organization, (9:32) it provides a lot of value to you as an individual.
(9:35) So for me, if I can get engaged in something (9:39) and just find a spot, you know, it's fun. (9:42) It's not really work anymore. (9:44) Right, right.
(9:45) And for me, the most rewarding piece is (9:49) you come up with an idea, (9:51) that idea develops into a project, (9:53) and then you're given the go-ahead to move forward with the project. (9:57) So now you're kind of in that project management phase, (10:00) you're assembling a team to support the project, (10:03) and then you're working that all the way through. (10:05) So you really have the opportunity to come from the ideation phase (10:10) to the execution where you're bringing a product to market (10:13) or maybe a new process internally, whatever it is, (10:17) but you see it from end to end.
(10:19) That's fun. (10:20) That'll get you up in the morning, right? (10:21) Yeah, that's right. (10:24) All right.
(10:25) Well, hey, let's kind of scoot along here. (10:27) All right. (10:28) So with that, I guess you're a believer (10:31) that just about anybody can be successful.
(10:33) Would that be fair to assume? (10:35) Absolutely. (10:35) With the right attitude and the right drive, (10:37) anyone can be successful. (10:41) Let's see.
(10:43) So did you have any mentors while you were growing up? (10:46) You know, I had tons. (10:48) Obviously, my parents, when I was growing up, (10:51) were huge impacts in my life. (10:53) My family today, I had mentors in the military, (10:58) I had mentors in college, (11:00) even mentors in starting out in the tire business (11:04) kind of at the dealer side.
(11:05) So a lot of people that showed me the right way. (11:08) But I think as important, I had some really bad mentors. (11:13) Interesting.
(11:14) You know, and I think people miss that lesson (11:17) because you can learn as much from a bad boss (11:21) as you can from a good boss (11:23) because I think everyone one day has the opportunity (11:27) to be responsible for a team or lead a business (11:30) or whatever it is, (11:31) and it's important to have that self-critical mentality (11:35) to learn from not only your mistakes (11:38) but mistakes you see other people make (11:40) so that we don't repeat that bad history. (11:43) And so I was very fortunate to have a lot of people (11:47) show me the right way to do things. (11:49) That's wonderful.
(11:51) There are building blocks there as well, right? (11:53) So your value system, right? (11:55) If somebody's giving you bad advice, (11:57) you do have to have enough of your own internal fortitude (12:01) to say, let me think about what I just heard from that person. (12:07) Let me reflect on that before I kind of want to take that (12:10) into my special space and make it grow. (12:13) And I think that's one of the benefits (12:15) of the people you surround yourself with.
(12:18) You do need to identify, (12:20) are those the kind of folks I want to be around? (12:23) Right. (12:23) I think success models success, (12:27) but more importantly, happiness models happiness. (12:31) And so if you surround yourself with people that are negative, (12:36) you're going to be negative.
(12:38) And so I think it's important that you, (12:40) at a young age, you have that moral compass (12:43) and you have that value system (12:45) that hopefully was born in your heart (12:47) and it's going to put you on the right trajectory, (12:50) but you surround yourself with the people (12:52) that are going to make you happy, keep you happy, (12:54) support you, make you successful, (12:57) make you a better leader, (12:59) just have more positivity in your life. (13:02) Agreed. Very important.
(13:04) So let's hit the values discussion here since we're in it. (13:08) What would you say are a couple invaluable values (13:12) that people should carry with them (13:14) if they're coming to Continental? (13:17) Again, we talked a lot about curiosity. (13:20) For me, a personal value is acting honorably.
(13:24) And a lot of people have a different definition of that, (13:27) which is fine, but just do the right thing. (13:31) You're never going to get in trouble (13:33) for doing the right thing. (13:35) And having that passion to win, (13:38) Continental's going to give you the freedom to act, (13:41) to grow, both personally and professionally.
(13:45) Having that passion to win, (13:48) life's not a competition, but business is. (13:51) And so you want to get in there (13:53) and be passionate about what you're doing. (13:55) Well, there you go.
Well done. (13:58) So let's chat about the next big innovation in your industry (14:01) since you're in the middle of it. (14:04) Would you please address that? (14:06) Yeah.
(14:07) So there's so many innovations in our industry going on today. (14:12) I would say on the tire side of the business, (14:15) it's about the connected tire. (14:17) So tires that have a voice.
(14:20) So many times people don't understand (14:22) this very small piece of rubber (14:25) that's connecting the tire to the road (14:27) when you're driving 55 miles an hour (14:29) in the rain down the interstate and how important that is. (14:32) On the automotive side, I would say (14:34) it's electrification and autonomous driving. (14:37) So all the parameters and inputs around that, (14:41) people, even my two best friends (14:43) that I was talking to a couple weeks ago, (14:45) we were talking about the fact that we will see (14:48) in the very near term an opportunity (14:50) to get into a vehicle and say, (14:52) take me home, and it takes you home.
(14:56) And maybe even quite possibly, as we've engineered, (15:00) vehicles without steering wheels. (15:02) So there's no driver input. (15:04) And having that connectivity between (15:06) the automotive system of the vehicle and the tire (15:09) and just imagining coming in, (15:11) and you have a three-hour trip, (15:13) being in a vehicle that you don't even have to give input to, (15:17) and the productivity you can imagine in that three hours (15:20) without having to be engaged in driving.
(15:23) So the connectivity of the tire to the pavement, (15:27) if we could just chat about that, (15:29) because as we do get further into the AI (15:33) or artificial intelligence side of things, (15:36) and vehicles are driving themselves, (15:37) are you anticipating a lot of different wear pattern (15:42) because you don't have humans acting, let's say, (15:46) or acting too quickly or not quickly enough? (15:51) How is that connected to the tire wear (15:54) and longevity of a tire, let's say, (15:57) versus what you might see in the future (15:59) with AI managing the car? (16:02) Yeah, those are great points. (16:04) So obviously, massive acceleration or deceleration (16:07) on a tire contributes to accelerated wear. (16:12) So you would imagine that as we move (16:14) towards a more connected vehicle world, (16:17) those heavy acceleration or deceleration forces are limited.
(16:21) So that will improve tire wear. (16:23) At the same time, we look for a future (16:26) where the tire is adapting to the environment. (16:29) So whether it's rain or ice or snow (16:32) or extreme summer heat, (16:34) that the tire has a chance to evolve (16:37) and maximize its performance in the road environment.
(16:41) Interesting. (16:42) I imagine there's a lot of chemistry (16:44) behind the scenes trying to figure that out. (16:46) Absolutely.
(16:47) And there's things like inflation, temperature. (16:51) All of those are semi-controllable parameters (16:55) within the equation. (16:56) So we want to maximize all of that (16:58) so that you have the safest mobility possible (17:01) with the best comfort.
(17:03) That makes sense. (17:05) So while I was looking into your organization, (17:08) I found that your company started back in the old days (17:13) with a rubberized hoof device (17:16) that made it so horses wouldn't slip on roadways. (17:21) Is that correct? (17:22) Correct.
(17:22) Cobblestones. (17:23) So back in 1871, 150 years ago this year, (17:28) we were founded with a rubberized horse hoof. (17:32) That's exactly right.
(17:32) Horseshoe. (17:33) And so now here we are all this time later. (17:36) It's not a horse.
(17:37) We're talking about a different form of transportation. (17:40) But we're still managing the challenge (17:44) of two objects coming in connection with each other (17:49) to try and create enough friction that you're holding it (17:52) but not holding so hard (17:53) that you don't have progressive movement, right? (17:56) Exactly. (17:56) So the evolution from rubberized horseshoes (18:00) to rubberized carriage wheels to pneumatic tires (18:03) to patterned through racing into agriculture.
(18:07) So that 150-year evolution. (18:10) Now, back to like you said, (18:12) you want enough friction to have traction. (18:15) But as we move into this electrification era, (18:18) you don't want so much friction (18:19) that you deplete battery life, for example.
(18:22) So it's that constant evolution in chemistry (18:25) within the automotive side of the business (18:27) as well as long success we've had on the tire side. (18:32) Right. (18:32) So it is a process.
(18:34) Innovation throughout the ages. (18:36) We see incremental improvement sometimes, right? (18:39) Or we can get radical improvement (18:41) if there's something invented (18:42) that's completely off the reservation. (18:45) But it sounds like at Continental, (18:47) industry is moving along in a certain direction.
(18:50) Those challenges come to your organization (18:52) and you figure out ways to solve challenges, (18:56) form them into products, (18:58) and then test those products, (19:01) bring them to market (19:02) to help that industry move on to the next stage, right? (19:06) Absolutely. (19:07) So like you said, the industry is churning along (19:10) as industries do. (19:12) Obviously, we want to create these innovations (19:15) that propel us ahead of the industry gain.
(19:20) It's the normal scientific method, right? (19:22) The hypothesis and the testing (19:24) and the production and confirmation. (19:27) So we're constantly working through that process, (19:30) not just on the tire side, (19:32) with certain areas of internal combustion, (19:34) with braking systems, (19:36) with AI and driverless, (19:39) automated vehicle technology. (19:41) So constantly looking for ways (19:43) to make mobility more sustainable, (19:47) safer, better for the environment.
(19:48) Understood. (19:49) So as an innovator, (19:50) if I was to go back in time, (19:52) maybe what I should be thinking about (19:54) are these basic building blocks. (19:56) So if I wanted to be a participant (19:58) in some form of innovation at an organization, (20:01) be it a private organization (20:03) or even a government organization, (20:05) they have systems and processes as well.
(20:08) They all need to be updated. (20:10) So the way we would chat about that here would be, (20:14) first, you have observational analysis. (20:16) Where's the challenge? (20:19) And then can you develop ideas (20:21) and participate in group discussion (20:23) to come up with, you know, (20:26) we could try this, we could try that.
(20:28) Somebody gets these ideas (20:29) and then start to create concepts (20:33) and prototypes out of that. (20:34) And then there are a whole lot of different jobs (20:37) in that space, (20:38) let alone getting through the manufacturing process. (20:42) And then eventually you have to get into marketing (20:44) and distribution and your communications (20:48) and storytelling and commercials.
(20:50) And they all have to project that benefit. (20:53) So, you know, (20:54) that sounds like a lot of different types of jobs (20:57) you exist inside a company like Continental. (21:00) Absolutely.
(21:01) You know, you have the innovative process, right? (21:04) And you described that very well. (21:06) I think the most dangerous thing (21:08) people get in the rut of, (21:09) well, if that would have worked, (21:10) someone would have thought of it already. (21:12) Well, that's our job to think of it, right? (21:15) To create these new ideas (21:17) and then you develop the value proposal (21:20) and you industrialize the product (21:22) and then there's everything behind it.
(21:24) And we talked about that earlier, (21:25) the excitement of seeing it from end to end. (21:28) And that's really where it comes from. (21:31) Back 150 years ago, (21:33) the idea that a metal horseshoe (21:36) doesn't work well on cobblestones.
(21:38) What if we had something (21:39) that gives you a little more traction (21:41) and we glue some rubber to a horseshoe (21:44) and here we are, right? (21:46) It's just that idea. (21:48) And you formulate the idea (21:49) and then you figure out how to industrialize it. (21:53) Yeah, you just took me back to my youth (21:56) when I was actually on a horse (21:58) and we were running across a field (22:00) and it was the spring was starting to break in.
(22:04) And so the top maybe inch of mud or dirt (22:09) was fluffy. (22:11) But under that one inch, (22:13) the ground was still frozen, hard, solid. (22:17) We came rolling up over the top of a hill (22:19) and that horse, we were flying (22:21) and the horse lost his footing (22:24) and the horse started to go down (22:27) and I let go.
(22:29) And the horse actually fell (22:30) and he stumbled all around and took off. (22:33) And of course I didn't feel real intelligent after that. (22:36) But then I thought, (22:38) actually I'm glad I let go.
(22:40) But the horse did lose his footing (22:42) and there's not a whole lot you can do. (22:44) So I can imagine being a rider (22:47) back over a hundred years ago (22:48) and seeing that as a real big problem. (22:51) That's a pretty heavy horse.
(22:53) You don't want that coming down on you. (22:56) Nor do I want to have a vehicle moving around on me (22:58) when I'm trying to have a good traction situation on the road. (23:02) So those are good.
(23:03) I just like the whole idea (23:04) of how to create a quality product (23:06) and make life safer for human beings. (23:09) Yeah, absolutely. (23:11) It's about giving back.
(23:13) It's a noble cause too. (23:15) I can wake up in the morning and chase that cause (23:17) to make life better for people. (23:21) Alright, let's see here.
(23:22) So how difficult is it for you to hire young adults (23:27) with the skill sets needed (23:28) for the innovation work that goes on at Continental (23:31) at this point in time? (23:33) You know, I think it's challenging. (23:37) We talked a lot about learning (23:39) and that continuum of learning (23:41) and how people understand thought leadership. (23:45) So everyone wants to go to college.
(23:48) I think that that's not the be all end all. (23:51) We have hundreds or tens of thousands (23:54) of manufacturing jobs (23:55) where we need people that know trades. (23:59) Mold manufacturers, trade engineers, mechanics, (24:04) those types of things.
(24:06) So we're constantly looking for those type of people (24:09) and we work with universities. (24:11) So we probably have a little advantage (24:13) obviously over a smaller company, (24:16) but it's about finding that creative fit. (24:20) That's the challenge.
(24:22) That makes sense. (24:23) That whole idea of you have to go to college (24:26) to get ahead, I don't agree with that either. (24:30) You find your path, what's right for you.
(24:34) If you can go on to a school (24:36) where it's welding and mechanical situations are going on, (24:41) you never know where that will take you. (24:43) But there's a lot of demand for people like that right now. (24:45) Absolutely, and I think we don't do (24:48) our younger generation a good service (24:51) in all this pressure for a four-year degree.
(24:53) Not everyone wants to go to college (24:56) or even needs to go to college. (24:57) I think there's tons of examples (25:00) of captains of industry that didn't finish college. (25:04) And people in the software industry, (25:07) I think probably not many of them even finished college.
(25:10) They're just that genius savant type of programmer. (25:15) So I think we need to do a better job (25:17) also of talking about trade schools (25:19) and the importance of that. (25:20) Yes, I couldn't agree more.
(25:22) Thank you, Tom. (25:23) You're welcome. (25:24) Thanks for having me.
(25:25) You bet. (25:26) Thank you for listening to this episode (25:28) of Tomorrow's World Today podcast. (25:30) Join us next time as we continue (25:32) to explore the worlds of inspiration, (25:34) creation, innovation, and production.
(25:37) Discover more at tomorrowsworldtoday.com, (25:39) connect with us on social media at TWTExplore, (25:42) and find us wherever podcasts are available.