New Michelin credit facility “in line” with debt refinancing strategy
On July 12 Compagnie Financière Michelin, a fully-owned Michelin subsidiary, signed a new credit facility to be used for general corporate purposes. This 1.5 billion euro multi-currency revolving credit facility, signed with a group of 21 banks, is intended to replace Michelin’s 2005-2012 1.5 billion euro syndicated line. Michelin states the new facility is “in line with the Group’s debt refinancing strategy.”
Continue ReadingSolvay notifies EC of Rhodia friendly takeover bid
Belgian company Solvay has informed the European Commission of its friendly takeover bid on Rhodia in order to gain the competition authority’s approval of the transaction. The cash takeover offer was first announced to Rhodia shareholders in early April, with Solvay saying it would pay 31.60 euros per share for the French chemical manufacturer. Rhodia’s board of directors unanimously recommended acceptance of the offer.
Continue ReadingToyo’s Shandong Silverstone acquisition finalised
Toyo Tire & Rubber’s acquisition of Chinese tyre maker Shandong Silverstone Luhe Rubber & Tyre, which was first announced on April 12, has now been finalised. The Japanese manufacturer reports the acquisition of 75 per cent equity in Shandong Silverstone has now been completed and the Shandong Province Industrial and Commercial Bureau has issued a business permit. Toyo’s paid in capital stands at RMB 330,138,000 (£31.8 milliion).
Continue ReadingDeparture, French-style: Miraton leaves – the market comes
Didier Miraton, at 53 years of age nearing the pinnacle of his strength and ability, is leaving the Michelin Group after 29 years. Miraton is taking his golden handshake and leaving quietly. The Michelin Group is also doing what it does so well in cases like this: Keeping quiet. Yet it is becoming increasingly clear that the departure of top-notch manager Miraton – who hoped to step into the leading position within the company following the retirement of Michel Rollier – is linked to a change in direction at Michelin. Managing general partner Rollier, a man known for his financial expertise, shared his power with both managing partners, Jean-Dominique Senard and Didier Marathon; it has been decided that when Rollier leaves Senard alone will take on leadership of the eleven-member Executive Board. It is likely that Miraton considered this measure an affront.
Continue ReadingVoith 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.
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