Pirelli may reduce 2014 sales goal due to Russia, emerging market pressures
While Pirelli’s recent sale of a 13 per cent shareholding to Russian petrochemical giant Rosneft brings it access to 2,800 petrol station/tyre points of sale, some industry observers are also warning that the political environment and the deal itself are on shaky ground. On the one hand the collaboration is expected to put Pirelli on a par with the premium leader in Russia, Finnish tyremaker Nokian Renkaat, in terms of a distribution network size there is more than one way to skin a cat in terms of distribution and other factors could end up affecting Pirelli’s overall sales targets. The company is set to publish its full year 2013 results this evening, along with its 2014 outlook commentary.
Continue Reading![Seat to produce first-ever SUV](https://www.tyrepress.com/wp-content/uploads/2014/03/nh6883_medium.jpg)
Seat to produce first-ever SUV
Seat has announced that it is to manufacture its first-ever SUV; it will come to market in 2016 and is already in development at Seat’s Martorell facility, Barcelona. “This is an excellent piece of news, since it takes Seat into a new territory, in one of the largest and fastest growing segments in the world,” […]
Continue ReadingEC to investigate anticompetitive practices in automotive exhaust sector
Only days after five companies were fined a total of €953 million for participating in a cartel within the automotive bearing market, the European Commission has reported its concerns that a number of companies in the automotive exhaust systems segment may have violated EU antitrust rules that prohibit cartels, restrictive business practices and/or abuse of a dominant market position. On 25 March, officials from the European Commission undertook unannounced inspections at the premises of companies active in this sector. The Commission officials were accompanied by their counterparts from the relevant national competition authorities.
Continue ReadingFederal aiming for 10% of Russian tyre market by 2019
Taiwanese tyre maker Federal Tyres states it has “set its sights on ten per cent market share in Russia” and aims to double the number of wholesalers it works with there (currently nine in eight cities, including Moscow, St Petersburg and Ekaterinberg) every year for the next five years to help achieve this objective by 2019. The company has been present in the Russian market since 2004 and its products are available at over 10,000 retailers across the country. It has now launched a brand new website, www.federaltyresrussia.com, VKontakte page, vk.com/federaltyresrussia, and 2014 campaign slogan that capitalises on Federal’s sponsorship of Manchester United: “Awaken the Champion inside” (Пробуди в себе Чемпиона).
Continue ReadingDouble Coin profits up almost 5% in 2013
Double Coin Holdings has posted operating revenue of approximately CNY 14.33 billion (£1.4 billion) for 2013, up 18.43 per cent from the previous year. The company attributed the increase rise to expanded production of tyres at its Anhui branch, as well as products and increased trades of other subsidiaries. Net profit attributable to shareholders rose 4.63 per cent to CNY 306 million (£30.1 million). Earnings per share was CNY 0.344 (£0.03).
Continue ReadingPrice rise for Lanxess rubber chemicals
From 1 April 2014, global prices for Lanxess rubber chemicals will increase in response to raw material price rises and unfavourable exchange rate effects. The adjustment will impact all product lines, including Vulkanox antidegradants, Vulkacit accelerators as well as specialty chemicals such as bonding agents (Cohedur), retarders (Vulkalent), plasticizers (Vulkanol), zinc oxides (Zinkoxyd aktiv) and DBD based peptizers (Renacit). The price increases will range from €0.10 to €0.70 per kilogramme (US$0.15 to $1.00) depending on the product and region.
Continue Reading![Nexen investing US$800 million in new Czech Republic tyre factory](https://www.tyrepress.com/wp-content/uploads/2014/03/foto_10907253.jpg)
Nexen investing US$800 million in new Czech Republic tyre factory
After weeks of speculation South Korean tyre manufacturer Nexen Tire has confirmed that it is investing US$800 million in the construction of a new tyre factory in the city of Nošovice, in the east of the Czech Republic.
Continue Reading![Russia a growing part of Pirelli’s business?](https://www.tyrepress.com/wp-content/uploads/2014/03/DSCF3692.jpg)
Russia a growing part of Pirelli’s business?
For Pirelli, Russia is “still a developing market”, and as we found out a week or so after Tyres & Accessories interviewed global marketing vice-president Matteo Battaini at the recent Geneva Motor Show, Rosneft’s purchase of 13 per cent of Pirelli’s shares means Russia is also still a developing part of Pirelli’s ongoing business strategy.
Continue Reading![Rosneft reaches for Pirelli – but the power stays with Marco Tronchetti Provera](https://www.tyrepress.com/wp-content/uploads/2014/03/Rosneft1.jpg)
Rosneft reaches for Pirelli – but the power stays with Marco Tronchetti Provera
Working on a share price of €12, which translates into a market capitalisation of €5.8 billion, Pirelli boss Marco Tronchetti Provera has arranged the sale of 13 per cent of all Pirelli shares to a majority state-owned Russian energy giant. With this transaction, Rosneft is set to become the largest single Pirelli shareholder. But even though his own shareholding will reduce to less than five per cent when the ink dries on the deal, Tronchetti will retain more or less free rein at Pirelli. While some market observers currently fear that the political situation in Crimea and the Ukraine may harm the deal, and others set their hopes upon the introduction of sanctions against Russia getting in the way, this article focuses on other questions – who Pirelli actually belongs to, who has the say at Pirelli, and how it is possible to control the Pirelli Group despite only having a minority shareholding?
Continue Reading![New Goodyear European president Darren Wells lands in Geneva](https://www.tyrepress.com/wp-content/uploads/2014/03/Darren-Wells-e1395405075469.jpg)
New Goodyear European president Darren Wells lands in Geneva
Top-ranking Goodyear executive Darren Wells was parachuted into the leadership of Goodyear Dunlop Europe Middle East and Africa EMEA in October 2013. Having come from the position of Goodyear global CFO, the move was pitched as something of a reshuffle of the company’s global leadership. Set against the backdrop of the recent Geneva motorshow, Tyres & Accessories talked profitability, strategy and efficiency with the newly installed president.
Continue ReadingDelticom increases revenues in 2013, but bottom line shrinks again
Consolidated net income at online tyre dealer Delticom has decreased for the second consecutive year, falling 47.9 per cent year-on-year to €11.6 million for 2013. This is 67.8 per cent lower than the 15-year old company’s best ever net income of €36.0 million, which it achieved in 2011. Nevertheless, upon releasing its 2013 Annual Report the company defended this result by claiming its business model “has once again proven its resilience” and that Delticom ran a profitable business last year despite an “adverse” market environment.
Continue ReadingSchaeffler fined €370.5M for bearing cartel participation
Continental AG majority shareholder Schaeffler AG is one of five companies that have been handed substantial fines for operating a cartel in the automotive bearing market. The European Commission fined the companies a total of more than €953 million, with the largest single fine given to Schaeffler. The German manufacturer must pay €370.5 million, almost 40 per cent of the total penalty.
Continue Reading![Bentley creates 100 jobs as its Crewe headquarters become W12 ‘centre of excellence’](https://www.tyrepress.com/wp-content/uploads/2014/03/GT_OrangeFlame_096_2.jpg)
Bentley creates 100 jobs as its Crewe headquarters become W12 ‘centre of excellence’
Bentley has announced plans to expand the workforce at its Crewe headquarters by 100 people as the site becomes a “centre of excellence for all VW Group W12 engines”. The move will see the UK manufacturer produce up to 9,000 W12 engines per year, exporting units for the first time in its history. To manage increased production demand, Bentley will employ a further 100 people in 2014 as part of the £800 million investment programme it announced last year.
Continue Reading![Matching stocks and customers a Vimexa strength](https://www.tyrepress.com/wp-content/uploads/2014/03/np-containers.jpg)
Matching stocks and customers a Vimexa strength
Gaining a foothold in a new market or securing the best deal on stock is easier said than done. It’s difficult for wholesalers, manufacturers or dealers to be experts in every aspect of the tyre business, and this means that companies often miss out on opportunities simply because they don’t know about them. In such instances you can either accept this limitation – or you can look for someone who can help. This year a new Netherlands-based company, Vimexa Automotive BV, entered the business of helping companies within the tyre, wheel and battery industries find what they want or need. Other automotive products, such as TPMS – a product of growing significance in Europe – may also be introduced into the portfolio. Tyres & Accessories recently met with company founder Rutger Veerman to discover more.
Continue Reading![Rosneft buys 13 per cent of Pirelli](https://www.tyrepress.com/wp-content/uploads/2014/03/Rosneft.jpg)
Rosneft buys 13 per cent of Pirelli
Russian oil major, Rosneft has bought into Pirelli, taking control of 50 per cent of the holding group controlling Pirelli and a 13 per cent share of the tyre maker itself. The purchase makes the Russian group the largest single shareholder in Pirelli. The deal is being characterised as a solidification of the company’s partnership with Rosneft in Russia, which is seen as a access route to the emerging market for the tyremaker. However, Pirelli’s share price had fallen 2.24 per cent in response to the news (correct at time of publication).
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