1 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.
Continue ReadingNovember Car Registrations Up
According to figures released by the SMMT, car registrations went up 172,094 units (1.8 per cent) in November, leading to confidence that by the end of the year 2004 will be a growth year. This is exemplified in the fact that year-to-date figures are only 682 units behind the 2003 level. In order for 2004 to be a record year only 156,135 cars need to be registered. Commenting on the announcement, SMMT chief executive, Christopher Macgowan said: “Novembers new car market was the second largest on record, boosting registrations towards a fourth consecutive record annual total. While the December market is difficult to predict, 156,135 new cars would see another record total. With Christmas coming, it remains to be seen if enough people have a new car on their gift list.”
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 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 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.
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