BorgWarner Publishes Tender Offer to Beru Shareholders
BorgWarner Germany, an indirect subsidiary of BorgWarner, Wilmington, USA, has officially published its takeover offer for Beru. As previously announced, the offered purchase price amounts to 67.50 euros per share. The acceptance deadline is 24 January 2005. According to Deutsche Bank analysts, the most interesting point about the offer it’s the fact that BorgWarner does plan to opt for a “squeeze out” or a domination agreement “for the time being.” However, there is clause stating, if Beru’s AGM agrees to a domination agreement or a squeeze out within one year after publication of the offer and the price is higher than the current takeover price then BorgWarner is bound to pay the difference to those shareholders who have tendered their shares. The closing of the share purchase agreement and the exercise of the share purchase option agreement remain subject to regulatory approval of the relevant authorities. More details are expected in the next few days.
Continue ReadingUS Tyre Shipments Increase
Deutsche Bank analysts are reporting that US tyre replacement shipments have “picked up” in November, increasing 6 per cent year over year. This was the first positive year over year comparision since June. The analysts also suggest that Cooper Tire may have slightly under-performed in the market. In spite of this the analysts also report that Cooper is currently proceeding above its –10 per cent volume assumption for the quarter.
Continue ReadingSeveral Hundred Jobs in Danger at Conti
Continental AG is currently contemplating the possibility of phasing out passenger car tyre production at its primary facility in Hanover-Stöcken, chairman Manfred Wennemer told a works meeting yesterday. Now, the company will examine whether or not passenger car tyres can still be produced profitably. The problem, according to a company spokesman, is the “development of the market and of the costs.” Currently Continental is producing at full capacity, but it is difficult to say whether or not it will be in the same position in a year’s time, added the spokesman. Therefore Mr Wennemer has already informed the staff “we are reviewing the situation at the moment.” One possibility in order to improve the competitiveness of Hanover as a production base, in comparison with Otrokovice (Czech Republic) and Timisioara (Romania), would be to increase worker’s hours without increasing wages. 350 people are employed at the Hannover-Stöcken facility where 1.5 million passenger car tyres are produced each year. According to the company, the announcement only refers to passenger car tyre production - other segments will remain unaffected.
Continue ReadingCan Russia Close the Gap Between Itself and Europe?
If we take a look at the current state of Russia’s tyre market, two main features can be identified. Firstly, there is the low-key presence of Western tyre manufacturers when it comes to owning production facilities in the country. With the exceptions of the Michelin owned factory near Moscow, and the plant that Nokian has started building, it appears as if other companies are only just starting to recognise Russia as an interesting market. This supplement to TYRES & ACCESSORIES and NEUE REIFENZEITUNG provides a look at the particular characteristics of the Russian market, introducing the important players and providing an outlook on the future development of this part of the world. Will Russia be able to close the gap between Europe and itself?
Continue ReadingBridgestone Appoints New Vice President
Bridgestone Europe (BSEU) has promoted Gunter Unterhauser to the position of vice president, sales and marketing. In his new position Mr Unterhauser will be responsible for pan-European aftermarket sales, while maintaining responsibility for the German market. Minekazu Fujimura, BSEU chairman, CEO and president, will continue to be responsible for the company’s OE business. Mr Unterhauser was previously managing director of Bridgeston Firestone Germany.
Continue ReadingKumho to Make International Listing
South Korea’s largest tyre manufacturer, Kumho Tire, is planning a dual stock market listing in Seoul and either New York or London, the Financial Times has reported. Such a move would be worth more than $1.5 billion, according to the newspaper. The listing is expected to take place in the first half of next year. Kumho is believed to have hired JPMorgan to manage the sale of at least a third of its shares in a move that could raise more than $500 million. One of the company’s major shareholders, the Military Mutual Aid Association (MMAA), owns 50 per cent of the company and stands to make a 40 per cent return on its original investment. Kumho and JPMorgan have declined to comment.
Continue ReadingAmtel Expands into Europe
Following the news that Amtel was in “detailed discussions” with Vredestein Banden, Amtel president, Sudhir Gupta has confirmed that his company will buy Vredestein Banden and that it is planning initial public offerings (IPO) in London and Moscow in the next two years. According to Dr Gupta, Amtel is planning a primary listing on the London Stock Exchange followed by a secondary listing on the Russian Stock Exchange. In a conversation with far eastern business publication, Business Times, Dr Gupta explained why the IPO would take place in London and not New York. “Europeans always understand Russia better than the Americans and most of the investment in Russia is European. That’s why we think London is a better place to list.” The secondary listing is also the result of ‘encouragement’ from the authorities for successful companies to list on the Russian Stock Exchange, and because “the stock exchange has good liquidity because of high oil prices.” The listings are due to take place in one of two time frames; either October to November 2005 or April to May the year after, the Amtel president said. Currently, Dr Gupta owns about 85 per cent of Amtel. An international investment fund managed by Templeton Asset Management Ltd, owns 5.65 per cent, while 10 per cent of Amtels shares were recently sold in a private placement for $34.2 million. These shares were bought by about 22 institutional investors in Europe, the US and Russia. It is clear that a key part of Amtel’s expansion plans will involve venturing outside of Russian borders. One part of this is the company’s purchase of Vredestein Banden. By purchasing the Dutch company, Amtel appears to have been aiming to buy a ready-made foothold in the market. At the moment Vredestein sells 40 per cent its tyres in Europe’s biggest market (Germany) and has well organised distribution operations across Europe.
Continue ReadingFrench MRT Franchise Renews Contract
Robert Bernard TRM, the first Michelin Retread Technologies (MRT) franchise in Canada, has renewed its contract with MRT for another five years. “We are pleased to renew our strong partnership with Robert Bernard TRM,” confirmed Guy Pekle, president of MRT Canada. “As the demand for MRT products strengthen and our growth continues, we remain committed to finding lower cost solutions for customers.” Jocelyn Bernard, vice-president of Robert Bernard TRM Ltée added “our existing structure allows for the sale of high-end MRT products on the road, via our retail distributors and Michelin partners. We are confident that market response will be as good as it has been for the last five years where we have seen consistent, annual growth.” Michelin says it will continue to focus on the independent dealer and franchises, noting that there are now more than 230 points of sale in North America for Michelin retreads.
Continue ReadingBridgestone South Africa Expects Loss
Bridgestone Firestone Maxiprest (BDS) said it is expecting to make a loss of between 35 million rand and 45 million rand (£3-4 million) for the year ending December 2004, Business Day, Africa Reports. The news comes as the result of difficult trading conditions, further write-downs and provisions arising from the restructuring of the groups operations, the company says. However, it also said the restructuring of its operations should set a base for improved performance in 2005. The group also announced that Mr T Wada, the non-executive chairman of the company, will be returning to Japan during the course of December 2004 and has resigned as chairman and director of the company. Mr Y Ito, the non-executive chairman and CEO elect of Bridgestone South Africa (Pty) Ltd, has been appointed as non-executive chairman of Bridgestone Firestone Maxiprest Limited.
Continue ReadingEuropean Car Sales on the Increase
Northern European car sales are set to increase by up to 9 per cent, market analysts from Deutsche Bank are predicting. According to the bank sales could turn out strongly rising roughly 9 per cent. The reason behind the growth is said to be down to a number of factors including an 11 per cent increase in the German market, two additional selling days in the month and a number of significant launches.
Continue ReadingYokohama Offers Global ADVAN-tage
Japanese based tyre manufacturer, Yokohama has officially launched its Advan brand. In an effort unify its global image, the company will now adopt one name for its premium products instead of the regional variations that currently exist. According to Yokohama, the newly launched brand reflects the company’s “highest performance” and “highest quality” image. The Advan name will adorn all of the company’s new global high performance products. At the same time as launching this new product concept, the company also released two new Advan branded products, the Advan Sport and Advan ST.
Continue ReadingPirelli’s Commitment to Telecomms Becomes Clearer
Marco Tronchetti Provera, boss of both Telecom Italia (TI) and Pirelli, is to force the merger of TI with its daughter company Telecom Italia Mobile (TIM), Italian media sources are reporting. According to the Italian media, TI is aiming to submit an official requirement for the 44 per cent of TIM, which is still in circulation, next week. The cost is estimated at 19 billion euros. Olimpia Holding is TI’s dominant shareholder, while Olimpia itself is controlled by Pirelli.
Continue ReadingAutopromotec ‘Closes the Circle’
According to the organisers of the 21st Autopromotec, the 2005 show will “close the circle, offering the entire gamut of products and services to the transportation industry.” The exhibition centre where the show is due to be held will undergo renovations and expansion, including the addition of two brand new halls. At the last Autopromotec in 2003, 936 exhibitors presented their products in an area measuring 100,000 square metres, with 83,000 visitors. At the forthcoming event, the traditional sectors of equipment and tyres will be represented alongside the new categories of spare parts and car services. From the organisers’ point of view, adding the new product categories to the fair is a welcome benefit to Italys industry of vehicle spare parts, a sector that recorded revenues of 7.7 billion euros, 68 per cent of which was designated for export. As a result of the new block exemption rules, this industry will be forced to re-examine traditional distribution channels by adapting them to the market. According to those in charge of Autopromotec, this is a good reason to make the most of every opportunity to have contact with professional mechanics, adding that the show also provides the chance for manufacturers to “step up marketing manoeuvres and new product launches.” By the time Autopromotec opens its gates, the BER, or Block Exemption Regulation, will have gone into effect. That will be followed by the “freedom of establishment” provisions on 1 October 2005, which will allow sales and auto servicing operators carrying out selective distribution to open branches in all EU countries.
Continue ReadingNew Technology Simulates Tyre Behaviour
A new supercomputer based technology has been developed in order to simulate tyre performance. The new technology, devised by Bridgestone and dubbed Comprehensive Road Surroundings Simulation (CROSS), promises to raise efficiency in developing optimal tread patterns. The system is able to simulate tyre behaviour on unpaved roads and off the road and in sunny, rainy, and snowy conditions. Bridgestone believes its new technology will help streamline work in optimising tread patterns on tyres for four-wheel-drive vehicles, earthmoving equipment, agricultural machinery, all-terrain vehicles, and other vehicles that operate on unpaved surfaces. Bridgestone’s announcement comes after engineers from the company presented a paper on terramechanics, the behaviour of soil under loads, at a September conference of the Tyre Society in the US. Terramechanics simulation technology is the latest addition to Bridgestones portfolio of simulation tools. The company announced new hydroplaning simulation technology in 1999 for analysing water flow under tyre treads on wet surfaces. In 2001, it announced technology for simulating tyre performance on snow.
Continue ReadingContinental Completes Repayment of Bond Loan
As announced two weeks ago, Continental has now completed the repayment of a 500 million euro bond loan. In doing so Continental has now undertaken another step on its way to reducing its debts. The German automotive supplier envisages that the sum will be repaid at 104.39 per cent by the 7 December. The bond loan that was issued in 1999 at 5.25 per cent was originally due for 2006.
Continue Reading