Sibur Shipments up 14.6 per cent
Sibur-Russian Tyres’ 11-month tyre shipment figures have increased by 14.6 per cent to 10.9 million tyres, Russian news sources have reported. In the first 11 months of 2003 the company shipped more than a million less (9.514 million). The value of the company’s shipments increased by a healthy 20.1 per cent from 10.342 billion rubles (£192 million) a year ago to 12.419 billion rubles (£230.3 million) a year ago. Overall shipments stood at 13.767 million (£255.8 million). Here the deliveries to Russian and CIS companies as well as orders from the Ministry of Defence were also taken into account. In total, Sibur produced 17.9 million tyres last year. Although the majority of these are distributed through the company main distributor, Sibur Russian Tyres, approximately 3.3 million are distributed through other avenues.
Continue ReadingSmarTire Publishes Lower Q1 Losses
SmarTire Systems Inc has published first quarter results, which show a quarterly net loss of $2.38 million, or $0.02 per share. This compares with a net loss of $3.26 million $0.06 per share in the same quarter last year. At the same time the announced that its gross revenue has also decreased $126,357 to $301,169. “As reflected in our recent announcements with Aston Martin, New Flyer and Redmer Industries, the company has focused considerable resources on securing strategic OEM accounts over the past months,” explained Robert Rudman, SmarTire Systems’ president and chief executive officer. “We see these OEM wins and key distributor signings as strengthening our position and revenue base going forward. With the availability of the new high-pressure systems for RVs, buses and commercial vehicles, the company is generating increased activity in these important target markets.”
Continue ReadingCooper Boss Named Industry Executive of the Year
Thomas A Dattilo has been named Industry Executive of the Year by Rubber & Plastics News. Mr Dattilo, who is also chairman of Rubber Manufacturers Association and vice chairman of the Manufacturers Alliance (MAPI), has served as Cooper’s president chairman and CEO since April 2000. According to Rubber & Plastics News, Mr Dattilo has helped the company to grow by nearly 25 per cent. Identifying Dattilo as the first “outsider” to lead the company, Rubber & Plastics News noted that he has provided the company “international experience and a better understanding of outside forces that influence companies in today’s economy.” ”Cooper’s people and customers are what drive the company’s success. My role is to lead an already outstanding organisation to even greater success – greater than what they may realise they can achieve,” explained Dattilo. “I am thrilled and honored to be named to this prestigious honour and gladly share this recognition with the entire Cooper organization.”
Continue ReadingGoodyear Dunlop Secures Additional Funding
Goodyear Tire & Rubber Co has said its Belgium-based joint venture with Japans Sumitomo Rubber Industries has arranged financing worth up to $365.5 million (£189.52 million), the associated press is reporting. The transaction, which will be completed in euros, will provide $219.25 million to Goodyear Dunlop Tires Europe BV, Europes second-largest tyre maker. That amount, which will be secured through accounts receivables, could expand before the facilitys term ends in five years. Goodyear said the transaction is expected to be completed by the end of the year, and will replace an existing $109.6 million facility. The deal is subject to customary annual renewal of back-up liquidity lines, Goodyear said. Shares of Goodyear rose 84 cents, or 6.43 per cent, to close at $13.91 in trading on the New York Stock Exchange. The stock increased another 5 cents to $13.96 in after-hours trade.
Continue ReadingPositive Economic Trend in View for Tyre Industry
The rating agency Standard & Poors (S&P) has warned tyre manufacturers that a break down in margins maybe on the horizon. The advice follows gleaming profits and figures from a number of manufacturers. S&P singles out Continental and Cooper for praise about their cost structures, adding that even the companies it considers to be well organised still risk being stung by raw material costs, which are responsible for 20 to 30 per cent of the turnover. S&P says it is concerned that due to tough competition it could become difficult to pass rising raw material costs on to the customers, and therefore margins would be under threat.
Continue ReadingThe Great British AutoJumble
On 9 January the NEC in Birmingham will host the Great British AutoJumble and Automart. The show offers visitors the largest selection of car-related products available under one roof. There event will also feature a dedicated Automart section where an extensive range of used cars will be available to buy. The Great British AutoJumble section will have over 500 stands with a wide range of automotive products and services available including motoring memorabilia, reconditioned, new and old car parts for 1000s of marques, literature, tools and car care products. Live demonstrations will also be featured showcasing new automotive products and informative restoration displays.
Continue ReadingAston Martin DB9 to Run on Potenzas
Following the release of the Aston Martin DB9, Bridgestone has announced that the new car will be fitted with Bridgestone Potenza RE050 tyres as original equipment. Like other tyres in the Potenza family the RE050 utilises a racing car nose-shaped tread pattern, which Bridgestone claims reduces the possibility hydroplaning. With an outer pattern featuring large blocks, the RE050 is also designed to improve handling and road holding, while its larger contact area has been manufactured to improve cornering performance. Powered by a 450 bhp six-litre V12 engine, the DB9 will replace the DB7, Aston Martin most successful car. Bridgestone Potenza RE050 tyres are fitted to a range of supercars including the Ferrari Enzo and F430, Porsche 911, Mercedes SL55 AMG. The Aston Martin DB9 will run on 235/40 ZR19 (front) and 275/35 ZR19 (rear) RE050s.
Continue ReadingMichelin Announces Further Price Increases
Michelin SCA in France admitted yesterday that it wants to make Europe-wide prices increases of five per cent. Michelin justified the repeated round of price increases by the rise of raw material prices, which have added up to 40 per cent in the last five years.
Continue ReadingBridgestone to Invest $700 million in Brazil
The Associated Press new agency is reporting that Bridgestone Corp will invest $700 million (£364 million) in the construction of a new factory in northeastern Brazil, according to Brazilian news sources. The company plans to build the plant in the state of Bahia because of strong expansion in Brazil’s motor vehicle production industry, the daily Valor Economico newspaper said. Bridgestone’s Brazilian unit had no immediate comment on the report. The company says it plans to invest $300 million (£156 million) in the first stage of the project alone. Bridgestones existing factory in a Sao Paulo suburb produces up to 30,000 tyres per day. The Valor newspaper did not reveal details of the new plant’s production capacity, although it is likely that the new plant will be used to produce passenger car tyres. Brazilian car production reached 2,020,704 vehicles for the period between January and November, up 20.8 per cent from the first 11 months of 2003, reflecting the countrys robust recovery from a sluggish 2003, when the economy grew less than 1 per cent. The auto industrys trade association is predicting an output of 2.2 million vehicles by the end of 2004.
Continue ReadingIndonesian Tyre Production up 18 per cent
Indonesia’s car production total for the first eight months of 2004 was up 18 per cent compared with the same period last year, reported the Indonesian APBI tyre association. In addition to the production increase, which equates to 23.37 million units, APBI chairman, A Aziz Pane explained that exports also rose to $301 million in the first eight months of 2004, from $247 million in the same period the previous. Mr Pane said exports contributed more to the sales total as sales on the domestic market had been depressed with large imports of cheap second hand tyres from China.
Continue ReadingTitan International Announces Cash Dividend
Titan International Inc’s board of directors has approved a quarterly cash dividend of half a cent per common share for the fourth quarter of 2004. The cash dividend is payable 14 January 2005 to those recorded as stockholders on 31 December 2004.
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 ReadingNokian to Sell Car Retreading Business
Nokian Tyres Corp has announced that its tyre chain, Vianor AB, has signed a letter of intent to sell its car tyre retreading business to another Swedish company, Mac Ripper AB. The company has not disclosed any financial details pertaining to the deal. In a report published by the AFX news agency, Nokian suggested that Vianor sold the retreading business in order to concentrate on new car and truck tyre sales, tyres. Following the news of the sale, shares in Nokian tyres fell 1.63 per cent to 110.17.
Continue ReadingAlcoa Restructures Business Units
Alcoa Aerospace, Automotive, and Commercial Transportation announced that is Cast Auto Wheels business units and the wheel divisions of Alcoa Wheel Forged Products will merge to create Alcoa Wheel Products, offering both cast and forged aluminum wheels to the commercial vehicle and automotive markets. Kevin Kramer, who has 21 years of experience gained in global marketing position at Goodyear, will lead the new division. “This reorganisation further drives our focus on markets and customers and allows up to identify and implement best manufacturing practices and process technology across our business,” said Bill Christopher, Alcoa executive vice-president.
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