EU Commission Probes Car Makers
The European Union Commission has said it is probing four car makers on suspicion that they restricted access to technical information required for vehicle maintenance in a way that may contravene EU competition law, Tire Review reports.
Continue ReadingHankook Leans Towards Slovakia
Media reports are continuing to circulate about exactly where in Eastern Europe Hankook will make its proposed $500 million investment. Numerous previous reports have stated that the company is interested in manufacturing in this region, and that the shortlist has narrowed to two countries (Poland and Slovakia). Now a Polish newspaper has added further information. A Rzeczpospolita report suggests that the Korean company is leaning towards Slovakia because of a governmental policy offering “flat tax” incentives to foreign investors.
Continue ReadingCommercial Register Entry Seals Phoenix Takeover
Continental AG, Hanover, can now proceed with the integration of the Hamburg-based Phoenix AG into its ContiTech AG subsidiary. The control and profit and loss transfer agreement between ContiTech AG as con-trolling enterprise and Phoenix AG as dependent enterprise was entered into the commercial register on 9 March, 2005. The agreement, approved at an extraordinary meeting of Phoenix AG shareholders on 28 December, 2004, can therefore go to effect.
Continue ReadingWorking Time Directive Could Affect Fitters
When the Road Transport (Working Time) Regulations come into effect on 23 March 2005 they are likely to affect tyre fitters, the NTDA has reported. From the start, workers covered by the regulations will be limited to working an average 48-hour week that will be calculated over a 17-week period. While it will be possible to extend this period to 26 weeks by using a collective or workforce agreement, the maximum working time allowed in any single week will be 60 hours. The worker cannot ‘opt-out’ of either the maximum average working week or single week maximum hours. The Regulations will apply to those persons who are mobile workers currently covered by the EU drivers’ rules i.e. those persons who work within the transport industry operating either goods vehicles, or passenger vehicles transporting more than eight seated passengers. Self-employed drivers will not be covered by the provisions until 23 March 2009. Mobile workers also need to comply with existing EU drivers’ hours rules in addition to the new regulations.
Continue ReadingKings Road Tyres Joins Quadrem Supplier Community
Kings Road Tyres and Repairs Ltd has joined Quadrem’s supplier network. “Our customers are embracing electronic sourcing and procurement activities to lower the costs of doing business,” said Peter Gaster, managing director of Kings Road Tyres. “We support their move toward automation and hope to gain access to new business opportunities by enabling this electronic sourcing channel.”
Continue ReadingCar Registrations Down 2.7 per cent?
Western European car registrations for February could be down by as much as 2.7 per cent, according to a Deutsche Bank report. Preliminary figures from Polk Marketing Systems suggest a decline of 3.7 per cent year-on-year (-1.3 per cent year-to-date). The report singles out Renault (-12 per cent) and Fiat (-13 per cent) as having particularly bad months, while VW brand (-8 per cent) stayed inline with the average and Mercedes (-15 per cent) failed to improve from a weak January. On a brighter note, the analysts point new model releases for the from BMW brand (+36 per cent) and Porsche (+15 per cent) as examples of European names that are doing well.
Continue ReadingAccuride Reports 46.7 per cent Net Sales Increase
Accuride Corporation has reported net sales of $138.5 million of for the fourth quarter of 2004, ended 31 December 2004. This equates to a 46.7 per cent increase compared to the $94.4 million that it raised in the fourth quarter of 2003. According to the company the increase is primarily the result of the “continuing cyclical recovery of the commercial vehicle industry. Accuride had net income of $5.2 million for the fourth quarter of 2004, compared to $0.6 million at the same time in 2003. At the same time the company recouped some of its 2003 losses, posting an annual net income of $21.8 million, compared to the company’s $8.7 million net loss of 2003. Full year net sales were $494 million compared with $364.3 million in 2003, an increase of 35.6 per cent.
Continue ReadingGoodyear Names New Head of Chinese Operations
Goodyear has announced the appointment of John Tseng as chairman and president, Goodyear Greater China. Tseng previously served as corporate vice president and general manager digital and film imaging systems for Eastman Kodak’s North Asia operations.
Continue ReadingCooper Tire’s Upbeat Outlook
Cooper Tire’s management is convinced that it can achieve a dramatic margin improvement. That’ the verdict Deutche Bank analysts gave after meeting with company’s top brass. Having said that, the report says the company is also realistic, not claiming to be able to achieve this overnight. According to the analysts’ report, the company doesn’t expect to achieve its 10 per cent target margin until after 2006, possibly 2007. In the second half of 2005, the analysts predict a “compelling trajectory” culminating in a 6-8 per cent EBIT margin in 2006. Furthermore, up to two margin points could be achieved by reducing scrap and plant inefficiencies. Pricing is likely to continue to rise, and eventually exceed raw material cost increases (potentially responsible for between 1.5 and 3 points of margin). the analysts add.
Continue Reading‘Movement’ in Union Talks
Talks between Cooper Tire & Rubber Co and the United Steelworkers of America (USWA) Local 752 for a new contract covering Cooper’s Texarkana, Arkansas, tyre plant are continuing. Tire Review has reported that both sides agreed to extend terms of the previous contract, which expired last week, at least until midnight on 12 March. Local 752 president David Boone told the Texarkana Gazette that the extension would hopefully give both sides time to reach a deal. “Both sides felt there is some movement,” Boone told the newspaper. “But we felt we didn’t have enough time to get there until Saturday midnight.” Healthcare costs and retiree benefits were the two main issues being discussed, he said.
Continue ReadingCooper Promotes Marketing Executives
Cooper Tire & Rubber Co. has made a number of new appointments, including the promotion of Ed Reading to vice president of international sales and marketing, writes Tire Review. In his new role, Mr Reading will be responsible for coordinating sales and marketing strategies for all Cooper products sold outside the US, as well as export sales from the US. In addition, Cooper named Matthew Moore as manager of programme pricing. Mr Moore will be responsible for determining prices on Cooper tyre brands. Finally, Chris Barbara was named sales training manager, and will be responsible for developing and facilitating training for Cooper’s dealers and sales force.
Continue ReadingRoad Safety Forum
The Auto Mobil International 2005 motor show, Leipzig, 5-6 April, will again host the road safety forum organised by the VDIK and TÜV SÜD Group. Amongst others the conference will address car manufacturers and suppliers, state authorities and associations as well as car safety experts and biomechanics. The road safety event is titled ‘Integrated Safety Concepts and Reliablity’ and the two day agenda will discuss, amongst other issues, the European Commission’s Road Safety Action Plan.
Continue ReadingReplacement Van Tyres Report
The latest report to come from Research and Markets Ltd analyses the replacement van tyres industry. The ‘Replacement Van Tyres Global Industry Guide,’ available now, includes information on market size and segmentation, textual analysis of the key trends and competitive landscape, and profiles of the leading companies.
Continue ReadingAviva Buys RAC for £1.1 billion
The RAC has agreed to a £1.1 billion takeover approach from insurer, Aviva. Aviva said buying the RAC would boost its Norwich Union insurance business “creating a powerful new combination in insurance and motoring services.” It added that combining Norwich Union and the RAC would allow cost savings of at least £80m a year in 2006. On Tuesday, RAC shares jumped 19 per cent after it said it had received a bid approach. Aviva, UK’s largest general insurer, could be interested in developing the RAC’s promising financial services business, observers said. The company declined to comment.
Continue ReadingUSWA Begins Strike Preparation
The United Steelworkers of America union (USWA) has announced that it has begun conducting strike preparation meetings with employees at Bridgestone/Firestone North American Tire (BFNAT) plants, according to Tire Review.
Continue Reading