Are We Witnessing a Conti/Schaeffler U-turn?
Inside sources recently told reporters that Schaeffler Group is considering unravelling its hostile takeover of Continental AG - offering itself up for reverse takeover by Conti. The automotive parts takeover-predator now finds itself pushed into the role of prey as it struggles to manage debts of 11 billion euros. As a result of the potential corporate role reversal, Continental could find itself well and truly back in the driving seat – but will the company be able to execute this move and at the same time exercise some poetic justice? There is no question that Schaeffler desperately needs to save money. In the first quarter of 2009, the company’s Automotive division recorded a downturn of 33 per cent compared to the previous year, which is now said to have “stabilized” at 25 per cent below last year, while its Industrial division is down around 40 per cent. However, lost sales don’t just mean reduced income. With output not expected to return to 2008 levels for another four years, the company has announced that it has to cut German labour costs by 250 million euros (the equivalent of 4500 jobs). Schaeffler has already cut 5,000 jobs in other countries, but redundancies at home make the automotive supplier very unpopular with the only people who are now realistically likely to help – the state and federal governments.
Continue ReadingConti Expresses Openness to MAG Clairoix Proposal
As of May 6 Continental AG reports that its talks with Dubai’s Moaffaq Al Gaddah (MAG) Group are ‘continuing’, with discussions centring on jointly defining the terms of a possible takeover proposal for Conti’s Clairoix plant. This meeting began the day after management from MAG visited the French factory, 24 hours later than originally planned – the visit was delayed for a day at the request of France’s Ministry for the Economy, Finances and Employment on safety grounds, the site having been closed temporarily following the destruction of fire prevention, alarm and surveillance systems.
Continue ReadingApollo’s Vredestein Acquisition Worth $300 Million – Analyst
The Apollo Tyres acquisition of Vredestein Banden, which should be finalised in late May, is said to be a deal worth in the vicinity of US$300 million. This figure was put forward by India’s Hindustan Times and was provided by an industry analyst who wishes to remain anonymous. “Vredestein was bought over by Amtel in 2005 for $260 million so this acquisition would at least amount to $300 million,” said the analyst. “The deal is a win-win situation for Apollo as it not only gets access to high-end technology which it can also bring into India, but also a firm marketing and sales foothold in Europe.”
Continue ReadingMarangoni Project Recreates Lunar Vehicle
Forty years have now passed since the moment when Neil Armstrong’s boots pressed the first ever footprints on the surface of the moon. Several years later the lunar surface encountered the roll of a specially manufactured moon tyre when the Lunar Roving Vehicle (LRV) became the first vehicle to literally offer out of this world performance. Those with a hankering to get better acquainted with the LRV can now do so thanks to Marangoni, who has produced a replica of this groundbreaking vehicle.
Continue ReadingHankook CEO ‘Looking Forward’ to What Lies Ahead
Hankook Tire reports that effective cost management and initial signs of a reviving market have helped it recover from negative territory in the previous financial quarter to post sales of KRW 1.1346 trillion (£599.7 million) in the first quarter of 2009. This result, 13.8 per cent up on a year earlier, is supplemented by operating profits of KRT 35.3 billion (£18.6 million), despite the market remaining, in Hankook’s words, a “challenging” one. During the first quarter exports from Korea rose 7.3 per cent year-on-year, with export demand showing a 19.9 per cent increase to North America and 8.9 per cent to Europe from a year earlier. The company also states that its Hungarian plant, the main production facility for the European market, has seen a “significant” 24.7 per cent growth in sales from the final quarter of 2008 and an 87.0 per cent increase from a year earlier.
Continue ReadingAmerityre Appoints New President & CEO
Amerityre Corporation’s Board of Directors has implemented a management restructuring that has resulted in the resignation of company president and chief executive officer Gary Benninger and the appointment of incubent vice president of marketing Michael Kapral in his place. Mr. Benninger joined the Company in October 2005, initially serving as its chief operating officer, before becoming president and CEO in September 2007. Mr. Benninger will continue to serve as a member of the Company’s Board of Directors. “Gary has worked hard to put the Company in a position to begin manufacturing and selling solid polyurethane forklift tires,” commented Louis Haynie, chairman of Amerityre’s Board of Directors. “Now, with Mike taking the reins, we expect his knowledge and experience in the tyre and tyre product markets will launch those tyres successfully,” he added.
Continue ReadingBridgestone Wins Kings Road Tyres Supplier of the Year Award
Kings Road Tyres has named Bridgestone UK as “Supplier of the Year” for 2008. The award was presented to Julie Plumb, head of UK truck sales, who commented: “We are delighted that Kings Road Tyres have recognised Bridgestone UK with this prestigious award for our overall performance in supply. We pride ourselves on our customer service and, as a long term partner of Kings Road Tyres, this shows that they value our partnership.” Adrian Bader, managing director of Kings Road Tyres, explained: “This award is in recognition of the tremendous support received from Bridgestone’s sales team and all other departments. Bridgestone’s professionalism and service was of the highest degree and goes to show that two companies working together in partnership can be truly successful.” Personnel from several departments were asked to rate suppliers on areas such as product availability, call centre efficiency, sales personnel customer service, marketing support and the provision of product and staff training.
Continue ReadingCamera Found in Toilet at Melksham, UK Tyre Plant
The management of Cooper Tire Europe has offered “its sincere apologies to anyone who was affected”, after a camera was found in the men’s toilet by employees. The Wiltshire Times reports that the camera “was installed by a maintenance contractor at the request of a Cooper Tires manager,” who suspected employees of substance abuse. The Unite Union representative John McGookin told the paper that he has discussed the incident with company management, saying, “This was somebody’s misguided approach to a concern. It’s something we have asked that the company ensures does not happen again.” A Cooper statement said that, “Following an extensive, independent investigation into the discovery of a camera in a toilet, it has been established that:- 1. Although there was suspicion of substance abuse on site, the decision to position a camera in a toilet was unacceptable 2. The company has a policy to deal with suspected substance abuse and this was not followed 3. The camera equipment was not made operational 4. Although the motives were genuine, as the company treats substance abuse seriously, this was a major error of judgement and therefore disciplinary action has been taken against those responsible 5. Procedures are being changed to ensure that such an incident cannot be repeated in future”
Continue ReadingContiTech Moves Spanish Hose & Pipe Production to Hungary
Continental is also making changes outside of its tyre business – the company has announced plans to end vehicle hose and pipe production in its Industrias del Caucho site facility in Spain to two existing Hungarian facilities, Vác and Makó. Machinery from the Spanish factory has already been installed in Hungary, and further equipment will be added later in the year.
Continue ReadingPartnership ‘Renewed’ through Porsche Panamera, States Pirelli
Tyres & Accessories recently printed news of Michelin’s OE supply to Porsche for the new Panamera; Pirelli has also indicated that the new vehicle will utilise its tyres. The Italian manufacturer reports that “the technology partnership between Pirelli and Porsche is renewed with the much-awaited Panamera sportscar, which will feature Pirelli tyres both in summer and in winter.”
Continue ReadingAME International – Working Closely with Customers
US based tyre-changing tool and equipment supplier AME International brought to Singapore a product portfolio that includes bead breakers, hydraulic pumps, the ‘X-tend’ pneumatic tyre spreader and the Titan Pro Series of tyre tools and garage equipment. We pride ourselves on working closely with our customers in order to provide them with the products that best suit their needs, said AME president, Keith Jarman. The tools we produce are manufactured using the very latest technology, thereby ensuring the highest possible standards of quality.
Continue ReadingBond International Developing a Stronger Foothold in Asia
As a major importer of far eastern manufactured tyres, Bond International’s presence at Tyrexpo Asia was significant. The company, which has been established for more than forty years, has acquired during its time in the business vast experience in the import and export of tyres to and from the UK. Today Bond International can provide unrivalled delivery service thanks to its four warehouses and stock level of over 600,000 tyres. As well as distributing all leading premium brand tyres the company is also the agent for Marshal, Admiral, Infinity, Sumo, Firenza, Rotalla and Gerutti.
Continue ReadingBridgestone Americas Extends Duravis Line-Up
The Bridgestone Duravis heavy-duty light truck commercial tyre range, originally introduced onto the North American market in 2007, is being extended through the introduction of the Duravis M895. Key features on this new all-season tyre are steel reinforced sidewalls and an on/off road capability. Like the Duravis R250, the design features of the Duravis M895 includes a reinforced steel casing for long life and retreadability, and other enhanced technologies for optimum performance. Bridgestone says the closed shoulder of the Duravis M895 contributes to improved wear and the tyre’s stone rejecter design offers enhanced casing durability. To further reinforce the overall performance of the Duravis M895, the tyre features a dual sidewall protector to help resist cuts and scrapes. Its heavy-duty construction helps protect the tyre in the most challenging applications and environments, Bridgestone notes.
Continue ReadingSnap-On’s Pinchuk Takes on Third Office
The board of directors at Snap-On Incorporated have elected current company president and CEO Nicholas T. Pinchuk to the position of chairman. Pinchuk succeeds Jack D. Michaels, who is leaving the Snap-on board of upon the expiration of his term on April 23, 2009. We are extremely pleased to have Nick as Snap-on’s chairman, president and chief executive officer, and look forward to him continuing to build on the foundation he has laid during his past seven years with the company, said W. Dudley Lehman, chairman of the company’s Corporate Governance & Nominating Committee. Nicks election as chairman is a further indication of the board’s confidence in his leadership.
Continue ReadingMichelin Sales 14.2% Down in First Quarter
To call what we have experienced in the first quarter of 2009 a bear market would be something of an understatement. And while in such ursine conditions the 14.2 per cent drop in net sales reported by Michelin is by no means any worse a performance than that experienced throughout the tyre industry, it is safe to say the French manufacturer is eagerly awaiting the next hibernation season. Group net sales for the three months to March 31 totalled 3.512 billion euros, of which the greatest chunk – 1.946 billion euros – came from the sale of passenger and light truck tyres. Truck tyres accounted for a further 1.006 billion euros, and the company’s specialty tyre business the remaining 561 million euros. All of these segments experienced a year-on-year decline in sales during the quarter; sales of truck tyres, in terms of income, declined 24.2 per cent.
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