Voith Industrial Services planning growth in wheel and tyre assembly operations
Voith Industrial Services has appointed Jack Callaghan in a bid to further expand the company’s business in wheel and tyre assembly operations throughout the UK and mainland Europe. Callaghan, who has more than 20 years’ experience in wheel and tyre operations in the automotive sector, has been appointed business development manager based at Voith Industrial Services’ UK headquarters in Warwick.
Continue ReadingRAC sale speculation began in March
Speculation that Aviva was planning to sell RAC begin in March 2011 and followed the earlier sale of a number of subsidiary motoring related businesses that came with the company’s 2005 purchase including Auto Windscreens, Lex (the vehicle leasing company) and the BSM driving school operation.
Continue ReadingCarlyle Group confirms it's buying RAC from Aviva for £1 billion
The Carlyle Group (an asset management firm) has confirmed that it has reached an agreement to acquire RAC Limited from Aviva plc for £1 billion. The deal is subject to regulatory approval, but is expected to complete by the end of the third quarter of 2011. Moving forward Carlyle’s strategic involvement appears to centre on the access to “additional capital for future investment” it can provide for expansion into other areas of motor service amongst other things. And the intention appears to be to expand “in the area of the motor services market.” Aviva bought RAC for £1.1 billion in 2005.
Continue ReadingGarage associations to bring European right to repair case
A legal enquiry has been commissioned into access to repair and maintenance information for independent repairers following a decision from the Committee on Internal Market and Consumer Protection, which is part of the European Commission. The RMI Independent Garage Association (IGA) along with CECRA, the European organisation which represents 260,000 independent repairers throughout the European Union, were invited, together with FIGEFA which represent the aftermarket through Europe, to give evidence before Gomez-Acebo a firm of lawyers who are conducting the legal enquiry.
Continue ReadingConti merger an opportunity to rectify past mistakes
The longest-serving Continental AG board member, Hans-Joachim Nikolin (55), leaves the company’s Executive Board at the end of July and its youngest member, Nikolai Setzer (40), will take over a combined tyre business and thus lead the company’s most successful and currently highest turnover-generating division. The company’s business unit structure has decreased at a management level to adapt with future requirements and now benefits the previously independently-led truck tyre division, which in many past years failed to meet expectations and suffered under the griping of Nikolin’s fellow board members Wennemer and Hippe. During that time, numerous threats were allegedly made to sell off the entire commercial vehicle tyre division should it prove unable to rapidly achieve an EBIT margin of or near double figures. Such threats placed Dr. Hans-Joachim in a very helpless position as yield-hungry analysts could have all too easily interpreted them as promises.
Continue ReadingGoodyear sells global wire business
Goodyear Tire & Rubber has agreed to sell its global wire business to Hyosung Corporation, pending government and regulatory approvals and other customary closing conditions. The Korean company will pay Goodyear and its affiliates approximately US$50 million for the business, subject to post-closing adjustments. Included in the deal are the tyre reinforcement wire manufacturing plants in Colmar-Berg, Luxembourg and Asheboro, North Carolina, which together employ some 600 people. In addition, upon closing the deal Goodyear and Hyosung will sign a multi-year supply agreement. The sale is expected to close in the third quarter of 2011; Goodyear says it doesn’t expect the sale to result in a significant gain or loss.
Continue ReadingConti merges commercial, passenger tyre divisions
On August 1 Continental AG’s Passenger & Light Truck Tires (PLT) and Commercial Vehicle Tires (CVT) divisions will be consolidated into a single unit known simply as the Tires division. This combined division will be headed up by Nikolai Setzer, who has led the PLT division since joining the company’s Executive Board in August 2009. Current CVT division head Dr. Hans-Joachim Nikolin has resigned from Continental on “highly amicable terms” and will leave the company on July 31. Conti’s Supervisory Board gave its consent for Dr. Nikolin's relinquishment of his office by mutual agreement at a meeting on June 7.
Continue ReadingGITI aiming for 10% market share
GITI Tire has appointed Richard Lyons to the position of general manager Europe as part of a series of moves that sees the firm implement a new organisational structure for its European operations. The structure, which took effect 1 May 2011, has been established following the departure of Michael Andre in March. Andre previously held the role of marketing director for passenger car tyres Europe and was managing director of the company’s Giti Tire Germany GmbH Deutschland subsidiary. Hervé Richert, GITI’s executive director, international sales and marketing described the new-look team a “direct consequence of GITI Tire Europe’s growth of business over recent years.” Writing in a statement detailing the reshuffle, he explained that it also follows the company’s “clearly defined strategy of building on strong relationships with its partners and customers with a focus on key markets in Europe and emerging markets” such as CIS and Russia.
Continue ReadingConti outlines PLT division management reshuffle
Continental’s Passenger and Light Truck Tire (PLT) division is gearing up for a round of management musical chairs: On July 1, head of worldwide Research & Development PLT, Christian Kötz, takes over as head of PLT Replacement EMEA, a slot temporarily filled by Nikolai Setzer, head of the Passenger and Light Truck Tire division. The position previously held by Kötz will be taken on by David O’Donnell; to take up this Germany-based role O’Donnell will leave the United States, where he is currently oversees Key Account Management The Americas for PLT’s OE business. And, as previously announced, Continental’s current head of Mergers and Acquisitions activities, Dr. Jochen Etzel, takes charge of the PLT business unit Replacement The Americas, also on July 1, 2011. He will be based in Fort Mill, South Carolina. Etzel succeeds Matthias Schönberg, who will be taking on a new assignment within the Rubber Group by taking over the helm of ContiTech Fluid GmbH.
Continue ReadingEC approves Kwik-Fit acquisition; 10 new centres planned for this year
Following the approval of its acquisition by Itochu Corporation, investment in new Kwik-Fit outlets is continuing with plans to open ten new centres this year and a similar number in 2012. Confirmed centre openings this year are in Farnham, Heywood and Scunthorpe, with other locations expected to be revealed over the coming months. These new sites add to those opened in recent months in Brentford, Brierley Hill, Bury St Edmunds, Charlton, Ipswich, Luton, Newport Pagnell, Rugeley, Thetford and Walsall. Prior to the launch of the latest centre investment programme, Kwik-Fit operated a 669-centre network, supported by a mobile fleet of more than 200 vehicles.
Continue ReadingMaterial costs squeeze JK Tyre 2011 profits
Reporting on the financial year that ended March 31, 2011, JK Tyre & Industries Ltd. notes that the selling price increases implemented for its products were unable to keep pace with raw material cost increases, and this adversely impacted upon the company’s margins. Therefore, despite a 30.9 per cent increase in net sales to Rs 59,454.4 million (£806.9 million), the Indian tyre maker’s before profit tax dropped 64.2 per cent to Rs 1,119.6 million (£15.2 million) and net profit declined 71.5 per cent to Rs 625.5 million (£8.5 million). Revenue from the company’s operations in India accounted for 80.0 per cent of total net sales and the former Tornel facilities in Mexico the remaining Rs 11,343.5 million.
Continue ReadingTitan 2011 sales, earnings outlook revised
As he prepares for a conference call on May 23 to discuss his company’s first quarter 2011 results, Titan International chairman and CEO Morry Taylor, offered a revised outlook for the remainder of the year.
Continue ReadingYokohama Board of Directors confirms Nagumo, Noji appointments
At its May 20 meeting, Yokohama Rubber’s Board of Directors decide in favour of the promotion announced by the previous Board of company president Tadanobu Nagumo to the role of chairman and CEO. Nagumo maintains his role as representative director. Taking his place as president is Hikomitsu Noji, currently director and senior managing corporate officer, and president of the Yokohama’s Tire Group; Noji will continue serving in this last-mentioned capacity. These and other promotions decided upon at the meeting will be formally approved at the company’s general meeting of shareholders on June 29.
Continue ReadingYokohama sales, profits up in FY2011
During the 2011 fiscal year, which in Japan began on April 1, 2010, net sales at Yokohama Rubber increased 11.4 per cent year-on-year to 519.7 billion yen (£3.9 billion); leading this sales growth were tyres and hose, sealant and adhesive products, and the company reports it “reinforced its sales momentum” through successfully implementing price increases that offset the effect of rising raw material costs and the appreciation of the yen. Operating income increased 37.5 per cent to 29.5 billion yen (£223.0 million) and net income grew 21.2 per cent to 13.9 billion yen (£105.1 million).
Continue ReadingLanxess progresses with HQ relocation plan
Following a two year recession-related delay, plans for German specialty chemicals group Lanxess to transfer its corporate headquarters from Leverkusen to the nearby city of Cologne are back on track. More than 1,000 Lanxess employees will make the 15 kilometre move to a newly renovated 22-storey building in the second half of 2013; the new headquarters’ opening will bring almost all the company’s management functions under one roof.
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