Transferable Warranty Offered By DaimlerChrysler
DaimlerChrysler (DCX) is to offer a 7-year/70,000 mile powertrain warranty as standard for all models. This differs from similar, existing deals (mainly offered by Korean manufacturers) in that it is transferable to subsequent owners of the vehicle. Industry analysts feel that the other two Big 3 manufacturers may be forced to follow suit and they point out that such deals can prove expensive if quality is not up to scratch.
Continue ReadingNew European Sales Director For Bandag
Peter De Cabooter has been appointed as Bandags Sales Director, Europe, reporting to Mike Tirona, Vice President and General Manager. De Cabooter joined Bandag in 1991 as Sales Development Manager, Benelux. He was made Country Manager for the same territory six years later, then Marketing Product Manager. He was appointed Fleet Sales Manager in 1999 and General Sales Manager for Eurofleet in 2000, having been closely involved in the design and development of Bandags fleet program.
Continue ReadingUpgrade For Bridgestone
Goldman Sachs Japan has upgraded Bridgestone to Recommended List from Market Outperformer. This is in view of in view of the company’s success in expanding sales of the Bridgestone brand in North America, unexpectedly swift earnings recovery at its US subsidiary Bridgestone/Firestone Americaand prospects that stock-price valuations may revive as litigation risk wanes and North American earnings recover, and only modest exposure to other risks.
Continue ReadingTwo New Appointments At Federal
Federal Corporation, the tire manufacturer with its headquarter based in Taiwan, today announced the appointment of Richard Huang, formerly Global Business Manager, to Vice President. In the new appointment Richard Huang will oversee Federals Sales and Marketing for both overseas and domestic, including Federex Marketing Corporation, a Taiwan domestic sales and marketing company. Federal also announced the appointment of C. I. Chen, formerly Vice President, to Executive Vice President. In his new appointment, Mr. Chen will be responsible for overall management of all functions at Federal and will be the focal point of coordinating and synergizing Federals operations in China and Taiwan.
Continue ReadingFord’s Kwik-Fit Woes Deepen
Kwik-Fit, the fast fit chain snapped up by Ford for 1.6 billion US$ has proven to be a step too far for the motor manufacturer. Not only has the originally touted ticket price of 800 million not been reached in the sale, but the highest bid looks to be nearer 300 million pounds. The potential buyer, CVC, is still undergoing negotiations with Ford. However, in the wake of Enron, WorldCom and rumours of unusual accountancy practices at General Motors (denied by GM), there have been irregularities found in Kwik-Fit accounts. PwC, Fords auditor has found that liabilities for the fast fit chain have been understated by £3.4 million. The error came about by accounting for goods supplied, without taking the unreceived invoices into account.
Continue ReadingLosses Improve At Amcast
Third quarter results from Amcast show the company improving on its position in the previous year. For the previous fiscal year to date sales were similar to this years and produced a loss of 25.9 million dollars. This fiscal year to date sales ran to 423.6 million dollars producing a loss of 12 million dollars. Compared to the previous year to date nine out of the companys eleven operating divisions were showing a profit this year, as against five out of eleven last year. Star of the turnaround is North American Wheels which has shown a six-fold operating income on a sales increase of 24 per cent. The company debt at the start of the year has been reduced by 13.3 million dollars to 185.7 million dollars.
Continue ReadingContinental Shows Interest In Sime Darby
Malaysian conglomerate, Sime Darby Berhad is to concentrate its tyre businesses and float it independently from the parent company (sales of around 3.2 billion US dollars). Key elements of these companies are tyre maker DMIB Berhad with a factory in Selangor and Sime Tyres Int. with factories in Alor Setah and Kedah. A spokesman for Continental confirmed that the German tyre giant wishes to buy 30 per cent of the tyre business, and signed a letter of intent with Sime Darby Berhad on the 26th June. Continental will have the opportunity to increase its share at a later date. This follows an earlier agreement in January between Continental and DMIB and Sime Tyres to share technical support. A former agreement between the Malaysian manufacturers and Sumitomo Rubber Industries had at that point concluded.
Continue ReadingGoodyear Reacts to ‘Mini Tender’
The Goodyear Tire & Rubber Company said it has become aware of an unsolicited mini tender offer by TRC Capital Corp. to purchase up to five million shares of its common stock, or approximately 3 percent of Goodyears total shares outstanding, for $19.50 per share. Goodyear said it expressed no opinion on the unsolicited offer, but advised its shareholders to exercise extreme caution in considering the offer. Mini tender offers are not subject to many disclosure, filing and procedural protection requirements of the U.S. Securities and Exchange Commission and are often structured to obtain shares at below market prices. Mini-tender offers - tender offers for less than five percent of a companys stock - have been increasingly used to catch investors off guard. Many investors who hear about mini-tender offers surrender their securities without investigating the offer, assuming that the price offered includes the premium usually present in larger, traditional tender offers. But they later learn that they cannot withdraw from the offer and may end up selling their securities at below-market prices. Goodyear urged its shareholders to review the terms of the mini tender offer carefully and to consult with their financial advisors before considering this offer.
Continue ReadingMichelin US Exchanges 30,000 Tyres
30,000 Phantom A/P tyres that Michelin produced between 1997 and 1999 can, in unusual and extreme situations, fail before the profile is under the limit. These tyres can now be exchanged free of charge as Michelin North America announced a voluntary and absolutely precautionary issue, clarifying that this is not a recall.
Continue ReadingUS Dept. Of Transportation Sued
Auto safety pressure groups in the USA are suing the Department of Transport for allowing car manufacturers to use inferior tyre monitoring equipment. They claim that despite the NHTSA (National Highway Traffic Safety Administration) recognising that direct tyre pressure monitoring is superior to indirect tyre pressure monitoring, the Department was allowing the use of the inferior product on a cost basis. The groups filing the lawsuit include the New York Public Interest Research Group, Public Citizen and the Center for Auto Safety in New York.
Continue ReadingFord “Close To Decision” On Kwik-Fit
In an article in the Financial Times, Sir Nick Scheele, chief operating officer of Ford, said that the company was making progress on the proposed sale of Kwik-Fit. He is reported as saying: Were pretty close on Kwik-Fit; you can anticipate an announcement in the medium term.
Continue ReadingPirelli Unveils Automatic Mixing System
Pirelli unveiled its automatic Continuous Compound Mixing system (CCM) which complements its MIRS tyre production system and allows extremely accurate and environmentally-friendly mixing of up to 40 components. Seven patents have been applied for, with the first one granted in North America. Together, says Pirelli, CCM and MIRS will mean a new generation of tyres, with performance unimaginable up to now.
Continue ReadingFirst Homologation For MIRS Motorcycle Tyre
A motorcycle tyre produced by Pirellis MIRS system has received OE homologation from bike manufacturer Aprilia for its RSV 1000 model. MIRS production modules are due to be installed at the Metzeler factory in Breuberg, Germany, shortly.
Continue ReadingJean Bergh New Managing Director At GTC*L
The new Managing Director at the Goodyear Technical Centre in Colmar-Berg, Luxembourg (GTC*L) is Jean Bergh (59) after the retirement of Theo Famulok. Famulok has headed up the 900 technicians at Goodyears R & D centre since 1994. 900 technicians in Luxembourg develop car, truck and agricultural tyres for Europe as well as for the Asian and African markets.
Continue ReadingBandag Buys Stock
Bandag has agreed to purchase over 1.5 million of its shares from Lucille A. Carver, widow of the companys founder and mother of current President, Chairman and CEO Martin Carver. Mrs Carver was a director of the company from 1957 until May this year and the sale reduces the voting power of the Carver family from 78 per cent to around 64 per cent. The total purchase price is $40,183,636.
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