New Kayaba Shock Absorber Plant in Czech Republic
Kayaba Industry (Japan), which, according to the company, is the biggest shock absorber manufacturer in the world, has developed its market position by building a new plant in the Czech Republic. Production is due to start in April 2006. “Kayaba Manufacturing Czech“ (KMCZ), to be based in Pardubice, will employ more than 200 employees at full capacity. According to the company’s production plans, by 2007 more than two million shock absorbers will be manufactured there each year. In December 2003, Kayaba bought the remaining shares of Spanish shock absorber manufacturer, APA. With an annual production of more than 15 million shock absorbers, the next step is further strategic expansion in Europe. The production plant in the Czech Republic, which will be based on the most modern technological criteria, will have its own capital funds, totalling 17.5 million euros. By making this further investment Kayaba says it is developing its operational basis in Europe more clearly than it has done so far. The recently submitted annual report 2003/2004 of Kayaba shows that the company is on course for growth. Turnover totalled $2.1 billion, which represented an increase of over 10 per cent compared with the same period last year. With an annual production total of more than 55 million units, in both in the passenger cars (for large reputable car manufacturers) and for the aftermarket business, the company reportedly holds a 23 per cent world market share.
Continue ReadingGiovanni Ferrario Steps Down
On 11 November, Pirellis Giovanni Ferrario, stepped down as managing director and general manager. In a statement, the company thanked Mr Ferrario for the 30 years of service he had given to the company. The business areas previously headed by Mr Ferrario will report to managing director, Carlo Buora. The Tire Division, headed by general manager, Francesco Gori, will report directly to the chairman for matters concerning divisional strategies and business development.
Continue ReadingGoodyear’s Increases US Conveyor Belt Production
Flying in the face of suggestions that the US is outsourcing all of its positions abroad, Goodyear has announced that its new belt plant has increased its production capacity, while creating more jobs. In the past year the company has created more than 100 job, increasing its workforce by more than 35 per cent. The company says its expansion is a result of “growing demand from stepped up global mining activity.” The Marysville plant is currently producing one of the largest orders in the plant’s 37-year history to be shipped to Latin America. The Goodyear Flexsteel ST3600 steel-cord conveyor belt is eight miles long and weighs 1,300 tons. When completed, the order will be shipped to one of the world’s largest open-pit mines located in the Atacama Desert of Chile, which produces copper, gold and silver. According to Dennis Hare, business manager for Goodyear’s conveyor belt products, the overland belt will transport crushed ore four miles to the mine’s processing plant for separation of metals.
Continue ReadingCBI Names New Trade Association Council Chairman
SMMT chief executive Christopher Macgowan is to be the next chairman of the CBI Trade Association Council. Mr Macgowan will serve a one-year term of office and replace the previous chair of the council, Moira McMillan, chief executive of the British Coatings Federation. Commenting on his recent appointment, Christopher Macgowan said: “I am immensely proud to become the next chairman of the Trade Association Council. It represents the great strength of UK trade associations and I look forward to making sure our collective voice is heard within the business environment. The motor industry is a leader in many areas and we have a vital role to play in the UK economy. I hope my tenure as chairman of the Council will further enhance our reputation while benefiting all.” The Trade Association Council is made up of the UKs top 20 trade associations in the CBI. It meets four times a year to contribute to policy work being undertaken by the CBI, and to identify and consider issues of common interest to the heads of major trade sector bodies. The Council is a cross-sectoral forum spearheading the representation of trade associations within CBI membership. It meets quarterly with Digby Jones, CBI director-general, government and economic organisations to consider a range of policy issues as part of the CBI’s consultation process which helps inform and drive the wider business agenda.
Continue Reading1 in 8 Vehicles ‘Dangerous’
Recent research carried by car care company, motoreasy has found that one in eight vehicles has at least one illegal and potentially dangerous tyre. Based on more than 1,000 tyre inspections taken at a number of the company’s approved independent garages across the UK. According to the research a further 24 per cent of tyres had tread so close to the legal requirement, a replacement would be needed “imminently.” Regionally, Londoners were found to be the worst offenders, with a fifth of the cars tested running on tyres below the legal limit. In contrast, motorists in Scotland had the highest pass rate with only 6 per cent of cars in need of a replacement tyre. The current legislation requires tread depth to be at least 1.6mm across the central three-quarters of the width of the tyre. This rule also applies to the spare tyre. Even so 17 per cent of those inspected were illegal, or would be following what the company describes as “a short usage.” Quite apart from the obvious safety benefits of having correctly fitted tyres (shorter stopping distances, reduced likelihood of aquaplaning), according to this research, drivers are foregoing the main financial benefit of using safe tyres, i.e. improved fuel economy. Not to mention the legal costs: three penalty points and a fine of up to £2,500 per tyre. “Added to this, insurance companies are within their rights not to pay out on claims if the vehicle insured is not in a roadworthy condition. It’s shocking that so many motorists seem to ignore the conditions of their tyres – something that should ideally be checked every fortnight,” commented Motoreasy managing director David Gerrans adding: “A simple method of checking the tread is to use a 5 pence coin. Slot an upside down coin into the tread of the tyre and the depth should come up to the top of the Queen’s crown. If you don’t reach the crown, it’s likely your treads are nearing the end of their life and should be replaced.” If Motoreasy’s research is correct, millions of drivers are failing to meet the minimum legal standard. In light of this, it makes the manufacturers and UK trade associations attempts to introduce a three-millimetre minimum tread depth look a fair way off.
Continue ReadingBridgestone to Produce Boeing 7E7 Tyres
Bridgestone, has won a contract to supply tyres for the new Boeing 7E7 family of aeroplanes, the companies have announced. Each new 7E7 will require 10 tyres, said the Chicago based aeroplane manufacturer. Bridgestone has not disclosed the value of the contract or the number of tyres it would produce for Boeing. Bridgestone shares rose by as much as 1.78 per cent after the news was announced.
Continue ReadingThomas Weidemeyer Joins Goodyear Board
Thomas Weidemeyer, formerly senior vice president and COO of United Parcel Service and president of UPS Airlines, has been elected to Goodyear Tire and Rubber’s board of directors. “In his 32 years with UPS, Tom distinguished himself in the transportation service and package delivery industries,” said Goodyear chairman and CEO Robert J Keegan. “We are confident that he will make significant contributions to our board.” The election of Mr Weidemeyer brings the size of Goodyears board to 11 members, 10 of whom are independent.
Continue ReadingBFNT, Steelworkers Re-Start Negotiations
Bridgestone Firestone North America and the United Steelworkers of America union have returned to the negotiating table after talks broke down 13 months ago according to a Modern Tire Dealer report. The negotiation collapsed when USWA officials walked out in response to a BFNA proposal. Workers at five BFNT plants are still working under a day-to-day contract that can be canceled by either party at five days notice. Factories that would be covered under a new contract include plants in Iowa, Tennessee, Oklahoma and a racing tyre plant in Akron, Ohio.
Continue ReadingMichelin Names Future Director of Motorsport
Following the news that Pierre Dupasquier will retire in 2006, Michelin has announced that Frédéric Henry-Biabaud, the current deputy director, will replace Mr Dupasquier at the end of the 2005 season. At the same time the tyre manufacturer gave further details of personnel changes within its motorsport group. The motorsport group is made up of five departments. The leadership of the group’s rallying, motorcycling, endurance racing and rally raids divisions will remain the same. Michelin’s Formula 1 division, however, will have a new head. Following the departure of Pascal Vasselon, bound for a new position in America, Nick Shorrock will take over responsibility from January 2005. Patrick Cohen will assist him as a technical manager. Commenting on the recent decisions, Motorsport Director Pierre Dupasquier said: “I am very happy to see that we are putting teams into place early enough to whom I can pass the torch, therefore guaranteeing the quality of service that we owe all our partners and the continuity of Michelin in racing.”
Continue ReadingShearer Confirmed as Continental Ambassador
Continental Tyre Group has confirmed that Alan Shearer will be its sporting ambassador while it is an Official Partner of the 2006 FIFA World Cup, in Germany. The former England captain has signed a two-year contract to help raise awareness of the Continental brand. Commenting on the news Brian Smith, managing director, Continental Tyre Group, said: “We are delighted that Alan – one of the greatest strikers England has ever produced – has joined forces with Continental Tyres to share in the excitement of this incredible sporting event.
Continue ReadingContinental Pulling the Plug in Russia
According to German media reports Continental is retreating from its commitment in Russia. All rescue attempts have failed, said chairman Manfred Wennemer in an interview with the Frankfurter Allgemeine newspaper: “We did not succeed in finding solutions, that would allow for a prosperous business in the long run.“ Therefore Continental is pulling the plug in Russia. Wennemer continues: “We have agreed with our Russia partner [Moscow Tyre Plant] that we are going to retreat from the joint venture. We are selling our shares of the joint company to MTP and thus ending our excursion in the country.” The retreat from Russia will cost around 30 million euros (£20.7 million), says chairman Wennemer. A part of the cost has already been reported as part of the company’s third quarter expenses. In spite of the Russian upheaval, the automotive supplier and tyre manufacturer is sticking to its positive financial outlook for this year.
Continue ReadingThe Effects of Raw Material Price Increases
Minekazu Fujimura, CEO of Bridgestone Europe has warned that China’s production explosion is causing a severe shortage of steel cord, natural rubber and other raw materials, essential to tyre production. Mr Fujimara told the Financial Times that the shortage has already driven up tyre manufacturers’ raw material costs by between 10 and 15 per cent, adding that further increases were inevitable. But it isn’t all bad. In the short term, Mr Fujimura conceded, the supply problems were proving to be financially beneficial. So far this year, the leading tyre producers have been able to raise their prices three times in acknowledgment of the rising cost problem. As a result the big producers have reported improved results. Bridgestone itself has just reported operating income of $983m on sales of $12.6bn in the first three quarters. Goodyear this week reported a profit of $36.1m for the third quarter, its second successive quarterly profit after a long period of losses. But Mr Fujimara is not resting on his laurels. “The problem is global and there is no escape from it. We have no choice but to pay the premium,” he said adding that the increases are likely to have a wider impact. “They will be working their way through into higher car prices,” said Mr Fujimura.
Continue ReadingBridgestone Increases Prices
Bridgestone has announced that it will raise its prices by 5 – 10 per cent on Bridgestone and Firestone branded passenger car tyres and by up to 10 per cent on its construction and mining vehicle products. The increases apply to products exported from Japan to Asia, the Middle East, Africa, and the former Soviet republics of the Commonwealth of Independent States (CIS). The company says the price increases are to compensate for the rising costs of steel and oil-based materials. According to Bridgestone, the price increases will vary by product and by market, will be implemented in stages, from 1 January, 2005.
Continue ReadingFord Mondeo to use Hankook
Ford has started using Hankook’s Ventus Prime tyre on its new Ford Mondeo. The vehicles will use 205/55R16V and 205/55R16H sizes. The company reports that Ford will also fit its Focus and Fiesta models with Hankook tyres. Both models are made at the Ford’s factory in Valencia, Spain.
Continue ReadingDIY Garage Opens in Aberdeen
The UK’s first “DIY garage” has just opened its doors in Aberdeen. The new workshop facility is targeted at those who enjoy carrying out motor vehicle repairs, but don’t have access to the necessary tools or facilities.
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