RMA Rejects Federal TPMS Proposal
Through the collective voice of the US Rubber Manufacturers Association (RMA) the American tyre industry has registered its “strong opposition” to the proposed federal TPMS regulation, saying: “It may create a false sense of security among consumers.” According to the association, the rule, proposed by the NHTSA, does not meet the government’s objective of improving consumer safety. Instead the association warns that the rule in its current format may increase the risk of tyre failures. The proposed rule would mandate that every car, SUV, pickup truck and minivan be equipped with a tyre pressure monitoring system that warns drivers when tyre pressure is 25 per cent below the vehicle manufacturer’s recommended inflation pressure. The RMA warns that a 25 per cent drop in a tyre’s recommended pressure would still leave the tyre in an unsafe condition. In a statement released by the association the RMA suggested that under the proposed standard, “motorists could be driving for thousands of miles on tyres that are appreciably under-inflated but still not receive a warning.” “A tyre pressure monitor that doesn’t provide a timely low-pressure warning to motorists will not enhance safety,” Mr Shea commented adding: “A tyre pressure monitoring system is meant to supplement, not replace, regular tyre maintenance by consumers.” The RMA supported its argument with the results of research it conducted in 2003. It found that nearly two-thirds of US motorists would be less likely to check their tyre pressure regularly with a TPMS-equipped vehicle. Other criticisms put forward by the RMA include: The fact that the TPMS would not be required to be tested at speeds of above 63 mph; at temperatures below freezing or above 40 degrees Celsius; during turning and braking manoeuvres; or on secondary roads. The RMA also criticised the suggestion that the TPMS system would not be required to work with replacement or full-size spare tyres. “In short, it is contrary to NHTSA’s mission to promote highway safety to promulgate a TPMS standard that may create a false sense of security among consumers about an issue as important as tyre inflation pressure,” the RMA said stating, “our intent is to work with NHTSA to get this regulation right and to get it done soon,” said RMA president and CEO, Donald B Shea, said.
Continue ReadingPlea for MOT Privatisation
A long-running civil strike in Northern Ireland, that began earlier this year, has had a “devastating effect on the industry,” say market representatives. The dispute has had adverse affects on the operations of the Driver and Vehicle Testing Agency Northern Ireland (DVTA) which handles all MOTs and HGV tests and there is call to privatise all vehicle testing.
Continue ReadingToyo Prepares Small-Lot Production in US
Toyo Tire has released details of its US production plant, several weeks after laying the foundation stone for the Cartersville, Georgia, production facility. According to Deutsche Bank, the Japanese tyre manuafacturer is going to install a flexible, automated production system which is well suited for small-lot production. This is said to produce better quality products than conventional methods. The company calls the system its Advanced Tyre Operation Module or ATOM. Toyo Tire first announced this production system two years ago and developed the technology with support from Toyota Motor, running pilot production schemes in Japan. The new factory, Toyo’s first US tyre production facility, will cost $392 million and will create up to 900 jobs. The factory will have an annual capacity of two million passenger car and light truck tyres after construction is completed in 2006.
Continue ReadingYokohama’s Income Decreases
In its third quarter Yokohama Rubber saw net sales rise by 4.3 per cent to ¥189.7 billion. The company claims that this reflected “solid tyre sales overseas.” However, net income fell by a massive 51.6 per cent, to ¥719 million. The manufacturer claims that this was due to inventory losses and a loss on devaluation of securities investment. Operating income also declined by 6.3 per cent to ¥4.3 billion, and has been put down to the increase in prices of natural rubber and other raw materials. Yokohama is also citing higher logistics costs stemming from increased export volume and a jump in shipping charges to the decline in income.
Continue ReadingPirelli Announces Improved Figures and New Investments
Pirelli has released results for the first three quarters of 2004 showing a 262 million euro increase in group net income year-on-year. The results also show that its net financial position is -1.9 billion euros. At the same time Pirelli gave details of a Chinese joint venture, a Romanian steel cord plant and three new MIRS plants, together worth 400 million euros.
Continue ReadingPirelli on 30 per cent of SEMA Wheels
Pirelli is claiming victory at the SEMA, in terms of product exposure. According to the company, a third of the vehicles on display were fitted with Pirelli products. For the Italian manufacturer, the highlight of the show was the Ford stand where the company’s new Mustang was exhibited with “every imaginable” tyre and wheel combination. The tyre producer also took the opportunity to exhibit its P Zero ultra-high-performance passenger tyre and its Scorpion Zero SUV and light truck radial. The company reports that more than 35 per cent of the wheel specialists in the show’s South Hall fitted their designs with Pirelli tyres. During Las Vegas exhibition, SEMA recognised the new Mustang as the most accessory friendly new vehicle for aftermarket tuners. Pirelli and Ford celebrated by hosting a Beach Boys concert and reception.
Continue ReadingMichelin Suffers Court Defeat
Michelin employees made redundant at the company’s Soisson plant have won their court case. The employees lost their jobs when the company sold its bicycle plant to Wolber. The new owners subsequently moved production to India. In the meantime the number of employees still disputing the situation shrank to 115. Now a court has ruled in the employees favour, stating that Michelin should offer the employees adequate jobs in other business premises and that they should receive remuneration from the company.
Continue ReadingContinental and Phoenix Boards Agree Exchange Ratio
The merger of ContiTech and Phoenix moved a step closer today when the boards of the companies made a profit and loss absorption agreement. In line with the valuation agreed by both parties, Continental will hold 95.78 per cent of voting stock of ContiTech once the merger has taken effect. Continental currently holds 75.73 per cent of Phoenixs voting stock. During the merger ContiTech, currently known as ContiTech Holding GmbH, will change its legal status. In the future the company will be known as ContiTech AG. Continental says it is unlikely to make an initial public offering immediately after the merger is completed, but the company’s management has hinted that an IPO is possible.
Continue ReadingGEA Supports UK Automotive Conference
The Garage Equipment Association has decided to support the Automotive Conference to be held at next year’s combined CVS and ATS show. Chief executive John Nelson explained his decision: “I firmly believe it is important to have events that the entire industry can get behind. There have been proposals for splinter events, but there seems to be no real demand for them. Our members want to be involved with events that maximise the chance to do business and we believe this is a step in the right direction.”
Continue ReadingGoodyear Reports Better Than Expected Results
Goodyear has officially reported third quarter results that show “record sales and positive net income.” According to the company the improved figures were driven by improved operating results in all seven of its business segments.
Continue ReadingTop Provider Award goes to Beissbarth
Beissbarth has won the 2004 Best Garage Equipment Provider title, awarded by the Institute of Transport Management (ITM). Patrick Sheedy, the ITM’s media and PR director, commented: “Over 900 independent garage equipment users were included in our survey, which tested opinions on the level of contribution to the industry, history of the product range and a rating on customer service. Beissbarth came out tops in all categories with a special commendation for customer service, which was rated as outstanding.”
Continue ReadingNew Balancing Concept
Hofmann Megaplan’s new Ride Management System has been installed at Jeff Fowkes Wheels, Leicestershire. The RMS package consists of the Megaspin 800 wheel balancer and Haweka Premier adaptor system, with the added feature of run-out measurement built into the balancer.
Continue ReadingSuperior President and COO Becomes CEO
Superior Industries has announced that Steven J Borick will become the company’s new president and chief executive officer from the 1 January, 2005. He will succeed Louis Borick, who will remain chairman of the board. Commenting on the appointment, Louis Borick said: Steven Borick has demonstrated his ability to effectively manage our complex operation. He has earned the trust and respect of our employees, our entire management team, and our customers. With his leadership and personal commitment to Superiors success, we are confident that Steven is the right choice to lead this company into the future. Steven Borick, has been president and COO of Superior since 2003. He was executive vice president from 2000 to 2002, and has been a director since 1981. Mr Borick is a director and member of the Audit Committee of MDC Holdings, Inc, Colorado, Americas eighth largest homebuilder, and a director of Richmond American Homes, Denver.
Continue ReadingHankook UHP Sales Up 50 per cent
Hankook Tire has announced third quarter results, which were stronger than expected both in terms of income and product sales. The third quarter results show that Hankook beat Institutional Brokers Estimate System expectations by 20 per cent with net profits rising 30 per cent year-on-year to 46 billion South Korean won (£27.376 million). Quarter-on-quarter the same figures fell 2 per cent due seasonality. Following the same pattern, volume shipments rose 5 per cent year-on-year but fell 6 per cent quarter on quarter. In addition, the third quarter saw the Korean company sell 50 per cent more UHP tyres than it did at the same time last year. This equates to 737,000 units in the last quarter. In total Hankook reports that sales are up 5.1 per cent. For Hankook, any news of increased sales is welcome as it will help offset rising raw material costs.
Continue ReadingBekaert Expects Double Digit Growth for 2004
Bekaert sustained its sales growth across all business segments in the third quarter. However, after making further efforts to manage unpredictable raw material markets, sales prices inevitably grew. In the first nine months of 2004, Bekaert achieved an increase in consolidated and combined sales of 19 per cent and 17 per cent respectively (1)(2). The consolidated sales’ increase was 20 per cent from organic growth and three per cent from the net movement in acquisitions and divestments, while adverse currency movements amounted to four per cent.
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