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Continental

The Man responsible for Continental's revved-up performance has been Chief Executive Manfred Wennemer, who took control in 2001 and has sparked a 500% rise in the share price. Previous management had stumbled by racking up billions in debt for acquisitions, puncturing profits, and leaving Continental ripe for a takeover.

Margins came to life as Wennemer streamlined operations, shifted commodity production of items such as tires and brake parts to low-wage countries in Eastern Europe, and negotiated greater flexibility and a longer workweek with Continental's German unions. Stronger cash flow helped Wennemer slash net debt from 160% of equity to a manageable 24%.

Wennemer also increased investment in key high-tech products to make acquisitions pay off. Now, Continental is a contender in cutting-edge auto electronics, such as its Electronic Stability Program (esp), which prevents skidding. Sales, already booming in Europe, are taking off in the U.S.--General Motors, Ford, and Chrysler have decided to equip every sport-utility vehicle with the new safety system. In tires, Continental has pushed innovation, patenting a "run-flat" system that allows punctured tires to keep going. Next up: electronic safety systems linked to cameras that could warn drivers of danger. This company sure has plenty of traction.