Another Loss Warning From Ford
Ford has warned that it expects to lose $900 million in the fourth quarter; which will be the companys third consecutive quarterly loss. This figure is in addition to the estimated $700 million one-off charge that the company will make to facilitate restructuring. Fords shares fell by 3.8 per cent at the news, despite a general rise in the stock market.
Continue ReadingInvestor Update From Goodyear
Goodyear has published its monthly investor update, giving brief details of the companys performance in various world markets. In North America in October, industry shipments of OE and replacement tyres fell. Goodyear made production cutbacks, which continued during November. European industry-wide replacement tyre shipments fell for both passenger and commercial and Goodyears sales followed this trend. For OE, Goodyear shipments of consumer tyres were up on last year while those of commercial tyres fell. In Eastern Europe, Goodyears shipments of OE and replacement tyres fell from October 2000 levels. Replacement shipments in Latin America fell and OE shipments rose, while in Asia, OE and replacement shipments both rose.
Continue ReadingLogistics Centre For Continental?
There are reports in Romania that Continental is going to invest one million Euro in establishing a logistics centre and warehouse in the country. This month should also see the millionth tyre produced at Continentals Romanian factory roll off the production line.
Continue ReadingNew Member for SupplyOn
Siemens VDO Automotive is to join SupplyOn, the internet marketplace for the automotive supply industry. Among the other members are companies such as Bosch and Continental. SupplyOn represents a buying volume of around 35 billion Euro.
Continue ReadingManufacturing Plant Closure By Hayes Lemmerz In The US
The worlds largest wheel manufacturer, Hayes Lemmerz, which is facing heavy financial difficulties and is struggling for survival, has announced the closure of its manufacturing facility in Bowling Green, Kentucky in the middle of next year. 235 employees will lose their jobs. The closure will entail costs of about 55 million US-$ for the current fiscal year.
Continue ReadingReorganisation In Store As Hayes Lemmerz Files For Chapter 11
Hayes Lemmerz, the wheel manufacturer that has been undergoing difficult times recently, has filed for restructuring under Chapter 11 of the US Bankruptcy Code. The company is at pains to point out that it has not gone bankrupt, neither is it going out of business and that Chapter 11 is a court-supervised restructuring proceeding, not a liquidation proceeding. It also applies only to Hayes Lemmerzs own operations in the USA and that operations outside the country (except for one plant in Mexico) and joint ventures are not included. Declining market conditions and excessive debt were blamed for the action. Hayes Lemmerz shares fell to 52 cents at the news.
Continue ReadingMulti-Million Investment For Pirelli UK Plant
Pirelli is to spend more than 11 million Pounds on extending its factory at Carlisle in the UK to manufacture tyres for 4WD vehicles. For some time, Carlisle has been Pirellis centre of excellence for SUV tyres and the factory produced 530,000 SUV tyres last year. The new investment will see this figure rise to 1.1 million next year and eventually to 1.6 million. 80 per cent of these will be exported to Europe and the USA. Carlisle also produces high performance tyres and total unit production at the plant will reach 4.25 million units in 2002.
Continue ReadingConti’s Santa Claus Event in Scotland
It has become a tradition that the tyre producer Continental invites the press to a Santa Claus Event around the 6th of December each year, presenting a certain topic/issue about the market. Whereas the group had been international for a couple of years, Conti returned to the original concept of an only German speaking group in 2001. Last years topic was the development and construction of 4x4 winter tyres and the problems this presents in addressing the contradictions in the expectations of performance. In addition, an optimisation of existing test methods of 4x4 tyres off the road was discussed with the journalists. The event took place in the Scottish Highlands. One outcome: Tyre suggestions for 4x4 cars can only ever be just a compromise - even if on a high level. The tyre has to perform well off the road and on the road. Safety aspects have to be taken into consideration as well: braking, handling and high speed performance have to be convincing as well. In addition there is the strong goal-conflict between driving performance and rollover danger.To put it in a nutshell: The ideal tyre that fits perfectly on every SUV for every use does not exist. This statement is as true as it is simple - and was demonstrated to the journalists group in the Highlands. The cars (Land Rover and M-Class) that had been equipped with Continentals 4x4WinterContact had to capitulate very soon in the muddy ground, because the tyres have been developed for different ground conditions. What makes it even more difficult for tyre producers is the fact, that there are insufficient testing standards for tyres on 4x4 cars. Tests are made either by the car industry of by the car magazines. Uniform procedures have not been developed yet. There can only be recommendations for the best case scenario.
Continue ReadingWaste Tyres: A Problem Or A Resource?
Waste tyres are a problem around the world. The prominence given to dealing with the problem varies, depending upon the local conditions. So, on searching for news on illegal tyre dumping, we will find it is accepted that tyre disposal is recognised as a problem in all the leading, or developed, economies. The USA, Britain, Germany, New Zealand and Australia amongst others, all have severe problems with disposing of waste tyres. In many third world countries there is less of a problem, possibly due to a lower level of use, to lower environmental awareness, and, partly to economic pressures in catching up on the developed world. In the race to catch up many developing nations feel they have the right to use the same freedom from environmental restrictions that were enjoyed in the developed nations during the first 200 years of the industrial revolution. It is difficult for them to look at the USA or Europe and see what we have lost and compare it to what they have yet to lose. It might be argued that the burden of dealing with the environmental problems in the developing nations is possibly a problem which ought to be carried by the leading economies, rather than by the embryonic economies around the world.Whoever carries the cost, we must surely recognise that the tyre industry has a duty to ensure that the products created have as efficient a life span as possible. The production and the ultimate destruction of the tyres created must also be as efficient and as least damaging to the environment as is feasible. Right now, the leading nations are taking steps to address the problem of waste tyres. The biggest single step is the ultimate banning in landfill of waste tyres. However, this in turn, creates other problems for the tyre industry. If we produce millions of waste tyres every year, they will all, one day, have to be disposed of. It is estimated that some 21% of these tyres currently get landfilled. They get landfilled because there are no other uses for these tyres. If there are no other uses and the tyres can no longer be landfilled, what do we do with them?Alternative uses for old tyres would indubitably be more beneficial and more economic in the long-term. The environmental lobbyists at Friends of the Earth and Greenpeace continually scream that recycling old tyres as retreads is a far better option than burying or burning. However, there are problems associated with that too. The obvious one is that there is an insufficient market for retreaded tyres. The industry could doubtless remanufacture as many tyres as it could get its hands on, but where are they going to be sold? Instead of having massive stockpiles of old tyres, we end up with massive stockpiles of retreaded tyres no-one wants to buy. And in todays Just-In-Time economy, no manufacturer wants to stockpile unwanted goods. So that is not a real solution to the problem. Then, again, there is the reality of retreading. That it is only extending the life of the tyre, and, at the end of the day, it will still need to be disposed of. Retreading could reduce the number of new tyres manufactured and extend the lifespan of a tyre carcass, reducing the demand for raw materials - which most would argue is a good thing. The producers of the raw materials in South East Asia and the oil producing companies might disagree.So we need to find other uses for the end product. Turn the waste tyre into a raw material which can be mined to create a new product. This is not a new idea, and there are a number of possibilities available. Each though has its own costs and benefits which must, in turn, be considered. Sometimes the obvious options turn out to be less acceptable than we might expect.
Continue ReadingTyres And Motor Sports
Of course, most media interest in respect of tyres in motor sports nowadays is in Formula 1. In this top discipline Bridgestone and Michelin are the rivals, even the phrase war of tyres has been coined. But there are also World Championships in Motor Cycle Sports, national competitions with an exclusive tyre supplier or different tyre manufacturers take place. Sometimes the engagement in motor sports may lead to technical progress for tyres, but in the first line it is an instrument of marketing.
Continue ReadingDaimlerChrysler Awards For Eight Goodyear Plants
Eight Goodyear factories have earned the DaimlerChrysler Gold Award, given in recognition of outstanding service. Seven of the plants are in North America and one is in Europe, at Philippsburg, in Germany. Goodyear was rated as excellent in the areas of quality, delivery, competitive pricing and technology and acceptable in customer support.
Continue ReadingDunlop and the End of the Spare Wheel
At the beginning of October Dunlop GmbH (Hanau) invited trade journalists and vehicle manufacturers’ OE managers to a demonstration, Dunlop ’99: Innovations in the Interest of Safety and Mobility at Trier, or rather at the company’s own test track at Wittlich. The main aim of the event was to convince that it was high time to get rid of the spare wheel. People’s attitudes cannot be changed overnight; a lot of thinking is required about how to live in future without this fifth wheel on the car and yet remain mobile in a vehicle that has just had a puncture. Dunlop claims to have developed a forward-looking safety and mobility concept, consisting of several different components grouped together: a self-supporting tyre (DSST = Dunlop Self Supporting Technology), an integrated tyre pressure monitor called Warnair, and an equivalent system for the replacement market developed in cooperation with the Italian Alltech Car Security Systems company plus a tyre sealant Fill & Go on the basis of IMS (Instant Mobility System). In the next few years the company will introduce the practical application of each of these components on different vehicle models – Dunlop can already claim partial successes. For example, the increasing numbers of IMS applications have prompted the tyre manufacturer to speak of a breakthrough, but the company is realistic enough to know that in the case of the DSST tyre series a similar success can only be had through original equipment.
Continue ReadingLower Profits Warning From Nokian
Nokian Tyres has warned that its profits for its tyre chain in the fourth quarter, and for the year as a whole, will be lower than expected, although group sales and profits developed as expected during the autumn. The reason cited for lower sales was the mild winter so far in Nordic countries, which depressed sales of winter tyres.
Continue ReadingLatest News From Berliner Reifenwerke GmbH
Until today, the German Berliner Reifenwerke GmbH has been an example of the incompetence of authorities, banks and others. NEUE REIFENZEITUNG has already reported developments in detail, up to the appointment of the official receiver. Part of around 80 million Deutschmarks, which were originally supposed to build up Berliner Reifenwerke, have either been thrown away or squandered in order to support the lifestyles of some company leaders, and of which the creditors are unlikely to see a penny again. But things are not so bad, because the investment bank Berliner Investitionsbank has already managed other flops. The truly sad thing is that loyal employees of many years’ standing have been dismissed, and they are now without jobs or prospects. The fact that Berliner Reifenwerke – today called Berliner Runderneuerungswerke –, is still alive, can be attributed to both the official receiver and the RuLa shareholders’ delegates. Berliner Runderneuerungs GmbH was founded by RuLa and, because time is short, the plant is being leased from the official receiver, but for the moment this factory will stay in mothballs. Although the huge pressure of time has been relieved, conclusive decisions are needed for the medium-term, as the whole plant cannot be leased for a long term if the contractual partner is an official receiver. Soon, investors will run off.
Continue ReadingFour Wheel Steering From Delphi
Delphi Automotive Systems launched a pre-production four wheel steer development named Quadrasteer today. The system will improve turning capability at all speeds and stability at high speed. The electronic system is claimed to reduce turning circles by up to 20%.
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