VW Aims To Recapture Market Share In China
VW is to launch two new models in China, the Golf and the Polo, aimed at the fast-growing low-price vehicle segment. VW holds a 40 per cent share of the Chinese market, down from over 54 per cent two years ago. The company expects to sell 500,000 vehicles this year and hopes to double this figure by 2007 as the market continues to expand. This year China overtook the USA to become VWs second largest market after Germany.
Continue ReadingKaplan Praises Sava Performance In Interview
In an interview with a Slovenian newspaper Jarro Kaplan, president of Goodyears Eastern Europe, Africa and Middle East region, paid tribute to the part played by Sava Tire in Goodyears global business activities. Since Goodyear took an 80 per cent stake in Sava in 1998, the Slovenian company has grown in international importance, exporting more than 90 per cent of its production to 70 countries, with plans to enter the US market soon. Kaplan described the Sava workforce as well educated, highly productive and internationally oriented. A five-year investment program in Sava was completed a year ahead of schedule and, says Kaplan, Goodyear is seriously considering further production expansion. In addition to the Sava brand, the factory produces Goodyear, Dunlop, Fulda and Debica brand tyres and is Goodyears only European factory to produce 17.5 inch truck tyres.
Continue ReadingGoodyear Director Resigns
In the USA, Philip A. Laskawy (61) has resigned from Goodyears Board of Directors, which he joined in August 2001. Laskawy is set to join the Board of General Motors and, as Goodyear is a major supplier to GM, he felt that remaining on Goodyears Board could lead to a potential conflict of interests, hence the resignation.
Continue ReadingFTM To Cease Trading And To Integrate Into Kwik-Fit Fleet
Following a review of its business operations, CVC, the new owners of Kwik-Fit, has made changes to its fleet operations. FTM Tyrefit will cease trading on 28th February and its call centre activities will be integrated into Kwik-Fit Fleet, which will also take over responsibility for FTMs outsourced business. Mike Wise, recently appointed Kwik-Fits Fleet Sales Director, said that he expects the transition to be seamless.
Continue ReadingBridgestone Lowers Profit Forecast
Bridgestone Corporation has reduced its profits forecast for the year by 43 per cent; down to 40 billion Yen (322.3 million Euros) from 70 billion Yen. This is a result of the planned investment in the corporations European operations of 400 million Euros and a one-off charge of 300 million Euros to cover the write-down of equipment. Analysts believe that Bridgestone is now concentrating on reviving its European operations, having concentrated on the US over the past couple of years, due to the Firestone recall. In the USA, Bridgestone/Firestone is set to make a profit of $70 million this year, compared to last years losses of $1.67 billion.
Continue ReadingNo F1 Rule Changes Until 2005
It has been decided by Formula 1s governing bodies that any technical changes will be delayed until the 2005 season. One of the expected changes is the re-introduction of slick tyres, but this has been opposed by Rory Byrne, Chief Designer for Ferrari. He believes that driving on slicks with todays faster lap times would increase the danger for the drivers.
Continue ReadingNew Business Plan For Bridgestone Europe
Bridgestone Firestone Europe is to increase its capital by 400 million euros before the year-end, which will be undertaken by Bridgestone Corporation (Japan). Bridgestone will use capital to rebuild its manufacturing resources and to reinforce its sales organisation and financial position. The production capacity for high performance tyres will be strengthened by strategic investment in passenger car tyre plants to facilitate quick changes to future products. This will include the expansion of the Poznan plant, which will increase its capacity up to 23,000 tyres per day from its current capacity of 10,000 tyres. In addition, Bridgestone will increase the truck and bus tyre output from its Bilbao plant from 3,500 to 4,600 units per day by the end of 2005.
Continue ReadingKumho In Talks With Pension Fund?
Following the breakdown of talks between Kumho and the consortium led by JP Morgan Chase and Carlyle Group, concerning the sale of 80 per cent of Kumhos Tyre Division, a media report from Korea says that talks are on-going with the South Korea Military Pension Fund to buy the company. Neither the fund, nor Kumho, nor the state-run Korea Development Bank, which the report says would provide funding for any deal, would comment on the report.
Continue ReadingAnalysts Cautious Over US Car Sales
Car industry analysts have reacted cautiously to news that November sales in the USA were ahead of predictions. Continuing high incentives to buy is helping sales volumes, but keeping profits down, leading to a situation dubbed profitless prosperity by one analyst. Even more ironic is the fact that it is the Big 3 of Ford, GM and Chrysler that are offering the greatest incentives, yet all three experienced double-digit sales falls last month and their market share is down 3 per cent to 61 per cent, with shares of imported vehicles rising. Analysts predict more of the same for early 2003, with prices falling because of over-supply of vehicles and the main question being how much longer can the situation continue?
Continue ReadingArrows Fired From Formula One
The Arrows F1 racing team has been excluded from next years series of races, following a season during which the team did not appear in five races and also suffered financial difficulties. F1 is facing falling TV audiences and there are moves afoot to change the technical regulations in order to make the races more interesting.
Continue ReadingSmarTire Plans London Listing
Canadian company SmarTire, which makes tyre pressure monitoring systems, is said to be considering moving its stock exchange listing from Nasdaq to London. The reason, according to chief executive Robert Rudman, is a lack of understanding of its business among US investors. SmarTire is bidding for potentially lucrative contracts and Rudman believes the company is undervalued, with shares having fallen to 60 cents.
Continue ReadingUS Tyre Dealer Accused Of Goodyear Fraud
William L. Davis, a former manager of a Goodyear-owned tyre store in the USA, has been accused of defrauding the manufacturer of $1.5 million. Davis allegedly ordered tyres at a discount then sold them at a profit, with the payments going through a separate company he had set up. If convicted, he faces a prison sentence of up to 20 years and a fine of up to $1 million.
Continue ReadingGalaxy And Trayal Sign Off-Take Agreement
Galaxy Tire & Wheel has signed a five-year, $27.5 million off-take and technology sharing agreement with Yugoslavian company Trayal. Trayal will produce Galaxy and Constellation skid steer and industrial tyres and the two companies will develop a line of off-road radials to replace Galaxys current line of port tyres. They will also collaborate on a line of special trailer radials and, when these are available, Galaxy will market wheel/tyre assemblies to OE trailer manufacturers.
Continue ReadingLarge US Retread Contract For Michelin
In the United States, Michelin Retread Technologies has won a two-year contract to supply retreads and servicing to the vehicle fleet of utility company Alabama Power Co. The fleet includes around 1,900 passenger and light truck vehicles, 840 heavy trucks, 1,000 trailers and 30 off-road vehicles.
Continue ReadingKumho Talks Come To Nothing
The talks between the Kumho Group and the US consortium of JP Morgan Chase and the Carlyle Group, aimed at selling Kumhos tyre division, have broken down. The disagreement was over prices, with a Kumho spokesman quoted as saying that the consortiums offer price was really cheap and unacceptable. Earlier in the year, the two sides signed a memorandum of understanding to sell 80 per cent of the Kumho Tyre, but this expired in November with no deal finalised. Kumho says it is talking to another - as yet unnamed - buyer.
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