Cooper-Standard Sale to Go-Ahead
Cooper Tire has been given the ‘go-ahead’ to sell four of it Cooper-Standard Automotive plants having reached an agreement with the United Steelworkers of America (USWA) union. As a result an appeal to the US 7th Circuit Court of Appeals will be dismissed. Previously Cooper had been under an injunction granted on 2 November, by the US District Court in Indiana. This followed a complaint filed by the USWA asserting the right to negotiate new labour agreements with a buyer before a sale of the four union facilities. Cooper has already announced a definitive agreement to sell Cooper-Standard Automotive for $1.165 billion to an entity formed by The Cypress Group and Goldman Sachs Capital Partners. I am pleased that the talks with the Steelworkers have produced an expedited and favorable conclusion, said Thomas A. Dattilo, Cooper’s chairman, president and CEO. Mr Dattilo added: We have continued working toward closing our transaction with the Cypress Group and Goldman Sachs Capital Partners throughout the process of negotiating with the union. This agreement certainly brings us closer to concluding the sale of Cooper-Standard Automotive, without any additional cost to Cooper Tire & Rubber Company. We continue to believe that the transaction will close before the end of the year. Exact details of the agreement have not been released. Cooper expects its deal with Cypress/Goldman Sach to be completed by the end of the year.
Continue ReadingTitan Wheel Signs to Supply Deere & Company
Titan International has announced that its Titan Wheel Corporation subsidiary has signed a supply agreement with Deere & Company. According to the company, the agreement secures wheel pricing with Deere for three years. The agreement excludes raw material price increases or decreases, these will be passed on to the customer. ”This is a very beneficial contract for both companies. Deere is ensured uninterrupted wheel supply and agreed upon pricing. In exchange, Titan will receive minimum order quantities and more accurate forecasting from Deere to increase productivity,” stated Maurice Taylor Jr., Titan president and CEO. “We congratulate the Deere team led by chairman and CEO Robert Lane on their record year, and the outlook for 2005 remains positive. Titan looks forward to growing with Deere and the rest of the agricultural and construction markets.”
Continue ReadingCeat launches all steel truck radials
Ceat has entered the Indian all-steel truck radial market, with products designed and manufactured for the Indian market by Pirelli, Europe. In the 2004/2005 financial year, the company projects a sales turnover in the region of 19.05 billion rupees (approximately £220 million). Ceat says it is eager to tap into the growing truck radial market hoping that eventually 10-15 per cent of its business will come from steel radials. Currently the use of truck steel radials in India is about two per cent, the is considerably less than neighbouring Pakistan (35 per cent) and a world apart from Europe (90 per cent). The proportion of steel readial in the Indian truck tyre market is projected to touch 10 per cent by 2007, Ceat’s vice-president, sales and marketing, Kalyan K Paul, said. According to the company, the use of its truck radial products can increase initial mileage by over 50 per cent, achieve fuel savings off up to 10 per cent and provide better traction and braking.
Continue ReadingBERU Receives 80 million euro Contract
BERU has received a three-year contract for its TPMS systems worth in excess of 80 million euros. The company says it will begin producing for the order “in the middle of 2005” when it will supply pressure monitoring systems for the US market of a European automobile manufacturer’s model. The company has not yet named the manufacturer. The product will be developed at the BERU Group electronics facility with the first deliveries of the new Tire Safety System (TSS) planned for the middle of 2005, in good time before the relevant US legislation comes into force. BERU reports that the order will contribute between 15 and 20 million to the Group’s total revenues in the 2005/2006 financial year.
Continue ReadingNew Subaru to Use Bridgestone Tyres
Subaru has launched a new version of one of its most popular cars – the Legacy. In an attempt to modify its image of being a “sensible family saloon,” the new Legacy range now includes a high-performance version. The Legacy 3.0R spec.B features a new gearbox, suspension system and Bridgestone Potenza tyres – all inspired by the well-known Impreza. The 3.0R spec.B has a revised Impreza STi 6-speed gearbox, which helps the three litre engine to produce 241bhp. And in keeping with the sporty feel, the new saloon will fit Bridgestone Potenza RE050A tyres as original equipment. The Bridgestone Potenza RE050A uses an asymmetrical tread pattern with large blocks on the outer side in order to provide superior lateral rigidity and to increase control in high-speed turning. The company claims that the high-angled grooves on the inner side improve water dispersion and assist in wet-weather driving. Andy Lane, consumer marketing manager at Bridgestone UK, said: “The Subaru Legacy 3.0R spec.B is a high-performance car that requires high-performance tyres. And with excellent levels of grip in both wet and dry conditions, the Bridgestone Potenza RE050A tyres compliment the Legacy perfectly.” The Subaru Legacy 3.0R spec.B fits Bridgestone Potenza RE050A tyres in size 215/45 R18.
Continue ReadingNokian Sells Bicycle Tyre Business
Nokian Tyres has confirmed that it has sold its factory premises in the town of Lieksa for a total of 3.6 million euros. The Finnish company sold the bicycle tyre business to Suomen Rengastehdas Oy. According to Nokian, the new owners took over the management of the plant straight away and will provide contract-manufacturing services to Nokian. All personnel, a total of 59 employees, are to keep their jobs working at the Bicycle Tyres profit centre and in heavy inner tube manufacture. Suomen Rengastehdas Oy is a subsidiary of Suomen Kumitehdas Oy. The companies are engaged in the manufacture of bicycle tyres, rubber boots, footwear and other rubber products, and in the reprocessing of rubber. The principal owners of the companies are Mr Arto Huhtinen and Mrs Tuire Erkkilä, both previously members of Nokian Jalkineet Oys (Nokian Footwear) management. In 2003 the Lieksa plant manufactured 784,000 bicycle tyres and inner tubes.
Continue ReadingDunlop Sponsors Romanian Mission
As the third incarnation of the Sir Bob Geldof’s charity song is about to hit the charts, Dunlop is also lending a helping had to some less fortunate people. In a bid to make Christmas a little bit brighter, the tyre manufacturer has sponsored Hand of Help IOM as a way of assisting the charitys work in a certain part of Romania. One of the trustee’s of Hand of Help, Chris Baker, visits an orphanage, a dystrophic baby hospital in Botosani and a drop-in centre in Dorohoi twice yearly. He also runs house-building projects to provide housing and employment for needy families. To help with the trip Dunlop has provided Mr Baker with a set of Grandtrek MT2 off road tyres to help tackle the poor road conditions and the amount of snow experienced on the trip at this time of year. Trips are normally run during the summer, however much of the hardship is endured during the winter months. The trip was therefore moved to Christmas with Christmas gifts, warm clothing and other specialist items taken to bring some joy to people in the area. “We are extremely grateful to Dunlop for sponsoring our trip. It is difficult to convey how much suffering is endured by the people in this area of Romania and the hope we bring to the area with our visits can not be underestimated,” said Mr Baker
Continue ReadingMichelin Transfers Formula 1 Boss
Michelin’s Formula 1 boss, Pascal Vasselon, has changed jobs into serial tyre production. The move is an apparent reaction to the fact that Michelin has failed to achieve a world championship in four years of commitment, online news portal F1total.com reports. It has not yet been decided who will be the 41 year old’s successor. The exact reasons for Mr Vasselon’s displacement also remain unclear, as he was generally regarded as an integral and highly esteemed part of Michelin’s Formula 1 team.
Continue ReadingSmarTire Gains New Patent
SmarTire Systems has announced that it has been granted a US patent protecting its multi-mount TPMS installation technology. For SmarTire, the system is of major strategic importance. The company sees the patent as a solid way of securing its competitive position. “The multi-mount technology enables a common sensor to be used to satisfy a variety of vehicle platforms using different mounting methods such as strap, valve or bonded,” says Kian Sheikh-Bahaie, senior mechanical designer at SmarTire. “This technology offers a number of benefits including a single solution regardless of wheel design and the ability to use aftermarket wheels without disabling the original TPMS. Smaller automakers can also take advantage of the economies of scale and speed to market by enabling them to use a common sensor.” “This patent represents a significant milestone as it expands SmarTires intellectual property portfolio at a critical time in the development of the TPMS industry,” says Robert Rudman, president and CEO of SmarTire. “Now that the Tread Act has been finalised in the US and the automakers are now required to install tyre monitoring in their vehicles, one crucial issue that has not been adequately addressed by the industry is the installation and servicing of TPMS. SmarTire has developed and now patented a unique sensor mounting technology that satisfies the diverse implications that arise during installation and servicing of the system over the life of the vehicle.”
Continue ReadingGoodyear Supplies Luxury Cars
Goodyear runflats have been selected for fitment on the new Rolls Royce Phantoms. The company claims its runflat technology offers this luxury vehicle “the highest possible tyre safety available on the market.” Goodyear will produce the Eagle NCT 5 EMT for the Rolls-Royce Phantom in its plant in Fulda, Germany available in 255/50 R21 (front) and 285/45 R21 (rear) sizes. At six metres long, weighing almost 2.5 tons and with a 460 PS V12 engine capable of accelerating the car in 5.9 seconds from 0 to 100 km/h, the elegant Rolls Royce Phantom is one of the worlds most luxurious cars. Goodyear also supplies runflats for the Cadillac CTS-V high-performance luxury saloon, and 2005 Corvette.
Continue ReadingBridgestone Firestone Announces US and Canadian Price Increases
Bridgestone Firestone North America and Bridgestone/Firestone Canada have jointly announced price increases. Prices are due to increase by 5 per cent on passenger and light truck tyres, 7 per cent on truck and bus tyres and 10 per cent or more on agricultural and off-the-road tyres. The companies say the increases will affect Bridgestone, Firestone, Dayton, associate and private brand tyres and will come into effect from 1 January 2005. According to Mark Emkes, CEO and chairman of Bridgestone Americas Holding, parent company of BFNT and BFCA, “Our tyre companies are facing an unprecedented continuation of rising raw material prices on a number of different fronts. From steel to petroleum to rubber chemicals, we have seen cost increases that simply can not be offset by the increases in efficiencies and productivity that we have implemented at all levels of our company. The action we announced today is a necessary step in addressing these escalating costs.”
Continue ReadingPrice Increases Good News for Manufacturers’ Shares
The prices increases announced by a number of leading manufacturers are good news for their share prices, say market analysts Deutsche Bank. Bridgestone/ Firestone announced a 5 per cent across the board price increase for passenger car and light truck tyres in North America, effective 1 January 2005, with heavy truck tyre prices set to increase by 7 per cent. According to the analysts, this news is particularly significant because BFS was one of two companies (along with Michelin) that did not raise prices during the last round of price hikes that were rolled out by Goodyear, Cooper Tire, Continental and others in October. This means that “most tyre companies will elect to raise prices once again in early 2005, and that price increases will mitigate higher raw material costs,” says Deutsche Bank.
Continue ReadingBridgestone to Purchase Rubber Estates from Goodyear
Bridgestone Corporation today announced that it has entered into an agreement with The Goodyear Tire & Rubber Company to purchase 95 per cent of the American company’s stake in Goodyear Sumatra Plantations (GSP). Terms of the pending purchase have not been disclosed. GSP, which began operations in 1917, is one of the largest natural rubber estates in North Sumatra Indonesia. Its activities include the planting, growing, tapping and processing of natural rubber. GSP has approximately 18,000 total hectares (47,000 total acres) with approximately 5,000 employees. Bridgestone said its acquisition of GSP is part of its aim to secure a stable supply of natural rubber and to increase its research and development in this area. The group supplies some of its own demand for steel cord, synthetic rubber and natural rubber, as well as carbon black.
Continue ReadingNew Dunlop Website
Dunlop Tyres have published a new website which features articles of motorsports greatest charcters, including Sir Jackie Stewart, Nigel Mansell and Sir Stirling Moss. The ‘Drivers Know’ site also provides features on the jazz generation, as well as new design technology looking at Dunlop’s RunFlat tyres and the ultra-high performance tyre, SP Sport Maxx. Visitors to the site will also get a chance to take a break at Café Dunlop. Here there are reviews on great reads for the passionate driver, the best driving films ever made and the ideal musical accompaniment to the perfect drive. Take a look at the design icons gallery or enter the forum for your say. There are also competitions to win your dream drive or the chance to win the ultimate jazz collection. Commenting on their most recent part of the company’s publicity drive, Geraldine McGovern, Dunlop brand manager said: “The blend of articles and features on the site were all provided by people in the know. The intelligent premium content from motorsport to lifestyle features delivers Dunlop’s Drivers Know proposition online”
Continue ReadingAlliance Continues to Profit
In its recently published third quarter results, Alliance Tire has announced a net profit of $102,000 for the third quarter of 2004, compared with a net loss of $1.66 million in the corresponding period last year. Although this period represents the company’s third successive profitable quarter, quarter-on-quarter figures show a slight drop in growth. Compared to 2003, Alliance reports that sales grew 26.3 per cent to $29.7 million. In the second quarter Alliance’s sales totalled $31.6 million. The company’s export figures continue to show impressive levels of growth. Alliance’s export sales grew by 37 per cent to $21.8 million compared with the same time last year. Agricultural, multi-purpose and industrial tyres for export make up approximately 75 per cent of Alliance’s export. Local market sales increased 4 per cent to $7.9 million, a figure that represents 27 per cent of total sales. In the first nine months of 2004, the tyre manufacturer reports that net profits grew to $3.7 million compared with losses of $8.3 million in the corresponding quarter of last year. In the same period, sales increased to $93.4m, an increase of 29 per cent compared with the corresponding period in 2003. Alliance chairman Isia Tchetchik said the third quarter growth was hindered by the port strike that prevented sales of $1.9 million. Despite this, he said, the company managed to achieve positive results that prove that Alliance is experiencing an improvement in business performance. Joseph Anglister, Alliance’s president, said the break-through in sales to Central and South America continued in the third quarter, in particularly in Brazil where sales doubled to $5.1 million in the first nine months of the year. The company president also stated that Alliance continues to implement efficiency measures, something that likely to prove useful in the face of rising raw material costs. According to Mr Anglister, production costs per ton of output fell 2.5 per cent to $2.38 per ton, while production increased 19.4 per cent, to 27,527 in the third quarter of 2004.
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