London Stock Exchange Listing For Pirelli?
Pirelli is reported to be moving its group treasury operations and investor relations activities to London – seen as a move to an eventual listing on the London Stock Exchange. This reflects the growing international nature of the group, with the Italian market now accounting for 13% of annual revenue. Chairman Marco Tronchetti Provera is reported as saying that he wants to expand the group, with analysts suggesting that any acquisitions would be in high-technology areas such as telecoms and energy.
Continue ReadingNew And More OE Contracts For Bridgestone From GM
Worldwide, the Bridgestone group has won new and additional OE business from General Motors, the worlds largest purchaser of tyres. Continental too will supply more tyres this year than last. It is said that Michelin asked for a significant price increase and voluntarily gave up supply volumes.
Continue ReadingDownturn In Car Market Hits Ford Europe
Fords European operation lost $35 million in 2000, compared with a $10 million operating profit in 1999, after a $1 billion restructuring charge partly related to the closure of car making facilities at Dagenham U.K. Henry Wallace, Fords new world-wide chief financial officer, said he was targeting a 1% return on sales in Europe and hoped to bring the Companys European arm into profit this year.
Continue ReadingSecond Plant For Ringtread System
There are a lot of patents, some first registered in the 60s, concerning retreading using a ring system. Most of the patents belong to Marangoni, the majority shareholder of Ellerbrock. But the new tyre manufacturers were also thinking about the idea of a ring. There were also developments by Goodyear very similar to the Marangoni system, so that it came to a legal settlement. But this was long ago and ancient history – now Goodyear offers its own ring called Uni-Circle. Until now only one plant has existed in Europe where these rings are produced: in the Marangoni factory in Frosinone (Italy) so you dont need to be a detective to understand that the Goodyear source of Uni-Circle is the Marangoni plant. Now Ellerbrock has also begun production of the tread in form of a ring, also called Ringtread system. Ellerbrock will be responsible for the markets of Germany, Austria, Switzerland and Denmark. Other countries may be added later, because Ellerbrock will produce the modern tread patterns popular in central Europe. Capacity of the new facility will be 300 rings per day. One benefit of the rings in comparison with traditional flat tread patterns for retreading is the higher flexibility in production: charges of twenty rings are no problems in the new plant. But there are also benefits for the retreaders: they can save material, time, and because the process is totally automated, mistakes in production caused by human error – which might lead to splice separations – are nearly impossible. And the ring looks exactly like a new tyre. The target of Ellerbrock with the Ringtread system is not to change from traditional truck tyre retreading but to find new customers.
Continue ReadingAnalysts Rate Goodyear Shares A “Buy”
Despite the admission of chairman and CEO Samir G. Gibara that Goodyears 4Q results were disappointing, some financial analysts have recommended the companys shares as a buy. The results were better than forecast, plus the analysts are confident that Goodyear will start to turn things around before long.
Continue ReadingAcquisition Of Two Japanese Brake Manufacturers By Continental
Continental Teves (Frankfort) – part of Continental AG (Hanover) - responsible for brake business, at the end of March, acquired two Japanese companies engaged in this field. The companies are Shin-Ei and ShinTec, former subsidiaries of the Mazda Motor Corporation. Continentals Board Member, Dr. Wolfgang Ziebart, responsible for Continental Teves, said that this acquisition is another important step toward the goal of becoming a system supplier for mechanical and electronic brake systems in the markets of Japan and Korea.
Continue ReadingLooking Back Over 20 Years Of NEUE REIFENZEITUNG
Over the past two decades, many things of interest have happened in the tyre industry, reported in the pages of NEUE REIFENZEITUNG and our twentieth anniversary is a good time to look back over some of these events. It is not our intention to produce an historic overview, rather to remind you of some of the significant happenings in the market which were important at the time and are still having an effect today. For example, we have seen many takeover attempts of tyre companies – both friendly and unfriendly – from which we have learned that biggest is not always best. Fifteen years ago, the Goodyear group was worth more at the Stock Exchange than today; now it is worth $4 bn, fifteen years ago, Goldsmith offered $6 bn. There have been many changes in the tyre trade too, and methods of selling tyres have changed significantly. Cooperations have been successful, but above all we have seen the development of Partnerships between the industry and the trade; today the basis for these agreements is more rational than emotional. Last but not least there are a lot of people who have made the news over the past twenty years. Among these are tyre dealer Schütze, the man who awarded himself numerous academic qualifications, and tyre dealer Hesse, who was the brightest shooting star of the early 80s, and bankrupt in 1984. On the other hand there is the tyre dealer from Weiden, Peter Unger, who had a big success story with his ATU stores; a success which is still on-going. Among the many other personalities worth mentioning is Horst W. Urban, the man whose actions ensured that Continental has remained an independent company, and Marco Tronchetti Provera; probably the most successful tyre company manager over the last decade.
Continue ReadingDetention Order For GT Tycoon
Reports in the Straits Times claim that a 20 day detention order has been issued against Gajah Tunggal President Sjamsul Nursalim on money-swindling charges. There has been speculation that the move, which is one of a number against businessmen, might be politically motivated. A separate report asks whether the group will have to sell off assets to repay debts.
Continue ReadingRubber Parts Unit For Toyo
Toyo Tyre and Rubber Co has announced the establishment of a wholly owned US subsidiary. The $20million plant will begin manufacturing vibration resistant rubber auto parts by July 2002. The companys main outlets will be Japanese motor manufacturers operating in North America.
Continue ReadingCooper Tire Announces Intent to Buy Hercules Retreading Assets
Cooper Tire & Rubber Co. announced the intention, as of June 30, 2001, to purchase certain manufacturing assets used in Hercules retread operation and will soon begin to supply retread products to customers formerly served by Hercules. This purchase will significantly increase sales in the Oliver Retreading Systems and Products unit, which is a part of Coopers new commercial division. Also included in this sale are certain assets of the Cedco equipment division, which will benefit Oliver’s Salisbury equipment operation. The final price is subject to certain valuations at closing but will not exceed $8.5 million.
Continue ReadingWet Weather Boosts Sales
Unseasonable wet weather has boosted sales of Goodyears Aquatread 3 passenger car tyre in North America. Sales of the wet weather tyre have risen by 30%, setting record sales levels for the premium tyre brand. Some nine out of ten users said they would buy the tyre again, setting new records in customer loyalty achievements.
Continue ReadingAre SUVs Safe Enough?
For month there has been bad publicity for the Ford Explorer because of spectacular rollovers. Now the US-Association NHTSA has asked DaimlerChrysler to supply information regarding the Grand Cherokee Jeep, built between 1995 and 1999. The NHTSA knows of more than 100 accidents, with injuries and one reported death. It is said that the automatic gears are not working properly. Quality problems of this sort have already led to the result that European and Japanese manufacturers of SUVs have significantly increased market share during the first half this year.
Continue ReadingKumho donates tyres to North Korea
Kumho Industrial is to donate 3,300 truck and bus tyres to North Korea. The donation is worth $300,000 and follows a similar donation last year. Kumho states that North Korea had requested the donation in return for allowing a rally to be held on its territory.
Continue ReadingRun-flat Tyres Will Replace Conventional Tyres
For so-called run-flat tyres (meaning tyres that can be driven even at zero air pressure) in Europe and North America huge sales increases are on the horizon. Run-flats will replace conventional tyres now in use. This can happen only step by step because there is a lack of production facilities for a number of years. Another effect: if the new tyres become standard original equipment, the market for tyres will reduce by twenty percent, because a car fitted with run-flat tyres does not need a spare wheel. Is the development of such products an example of the tyre business shooting itself in the foot? Of course not because it is never possible to stop technical developments like these. And it should be noted that run-flat tyres are more sophisticated than conventional tyres, which compensates for the lack of every fifth tyre in oe. Because tyre pressure warning systems will, in the future, become mandatory on new cars, they need suitable tyres. Run-flat tyres without tyre pressure systems are not practical; the driver might not realise that he is driving at zero pressure at high speed. The reverse situation is possible – indeed already a reality in some models – as the car is fitted with a tyre pressure monitoring system but on conventional tyres. Nowadays, run-flat tyres have moved from the arena of the laboratory and testing and are on the way to becoming a growing part of the market. As with other new technologies, if a new standard replaces an old one, the race is on among new systems (for example which tyre pressure monitoring system is the best), materials (for example which reinforcements should be used for the carcasses) and other developments for the transition period (tyre repair sets).
Continue ReadingSuperior Earns GM Agreement To Supply Wheels
Superior Industries International has been chosen by General Motors Corp. to supply aluminium road wheels for multiple GM vehicle lines over the next several years. Superior is a 2000 GM Supplier of the Year and was awarded the unprecedented contract based on its ability to consistently provide GM with world-class levels of quality, technology, service and price.
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