Continental To Build Moscow Plant
In a joint venture with Moscow Tyre Plant, Continental has signed an agreement to build a new production facility in Moscow. Continental is the majority shareholder and will produce tyres for passenger cars and light trucks. The predicted investment will be in the region of 30 million Euros over three years. The plant is expected to produce 1.5 million tyres per year when it opens in 2003 and will generate 3.4 million tyres for Continental and Barum, largely destined for the local market. The new plant in Moscow will help Continental avoid the 70 per cent import tax on new tyres.
Continue ReadingAnother Voluntary Recall For Firestone
Firestone is recalling 18,912 tyres produced at Wilson, North Carolina to ensure the recovery of some 890 potentially faulty units. The tyres in question are FR690 P195/65R15 with DOT No W2C6T00i402 and W2C6T001502 which may have been fitted to 2003 model year Toyota Corolla S and LE models. Firestone will be contacting the owners of the cars in the coming weeks an offering free replacement tyres. Firestone had identified and corrected a faulty piece of equipment at the plane, and had originally thought that the potentially faulty tyres had all been recovered. Subsequent information gave rise to an investigation which suggested a further 890 faulty tyres may have been released to the market. The fault creates pockets of trapped air which cause increased tyre noise and can result in chunk out.
Continue ReadingBridgestone Recalls Wrongly-Marked Tyres
In the USA, Bridgestone/Firestone is voluntarily recalling 754 wrongly-marked Widetrack brand Baja A/T tyres, made over a three week period in 2001. The incorrect markings on the sidewall understated the maximum inflation load of the tyre.
Continue ReadingBMW: Buy
Analysts class BMW shares as the best investment among German car companies, with a price rate of 62 Euros. Although the economic forecast for this year was rather negative, BMW reported good sales last month in the USA.
Continue ReadingChallenge Bibendum 2002
Heidelberg will be the starting point for the Challenge Bibendum 2002, organised by Michelin and ADAC from September 22 to 25, with the route going from the Black Forest to Paris, through Alsace and Champagne. The cars taking part can be seen at the Karlsplatz at 13.30 pm. At 16.30 pm the participants will be greeted by Edouard Michelin, the Vice-president of ADAC, Dr. Erhard Oehm and the mayor of Heidelberg, Beate Weber. The designs will be evaluated by the jury from 15.00 pm to 18.00 pm and at 18.30 the caravan will start towards Hockenheim.
Continue ReadingContinental: Problems With Nafta
Analysts at Deutsche Bank believe that this year Continental could achieve an EBITA of 600 million Euros. The management had forecast 530 million Euro. Although Temic was acquired, indebtedness has been reduced by 300 million Euros. Business in the USA is still bad, with losses of 100 million Euros (and more) expected. The objective of the chairman of Continental USA, Dr. Ulrich Wellen - to break even - seems not likely to be realised, at least in the near future.
Continue ReadingAmerican Safety Authority NHTSA Examines Dunlop Tyres
Dunlop tyres size 265/70 R 15, made between 1995 and 1999, are being examined by the NHTSA, following two rollover accidents in which people were injured.
Continue ReadingPredictions For 2050:The Car Market Is Changing
The altering demographics of the population in the next 50 years will possibly see a decrease in the demand for cars. The changes will not necessarily be in parallel because of the way in which the changes in the population will occur. The population over 60 years of age will become increasingly important as their representation as new car buyers increases from 25 per cent to 35 percent of the car buying market. The sector under 50 years of age will drop from 55 per cent to 43 per cent. This means that the manufacturers will have to re-orientate their products and their marketing according to a report by Marketing Systems GmbH (Essen/Germany).
Continue ReadingMAN AG: Buy
The analysts at the banking house M.M.Warburg rate MAN AG shares as a buy. The effects of the management to restructure the firm are already having an effect, so a price target of 27 Euros has been set.
Continue ReadingDaimlerChrysler AG: Buy
Last month the American vehicle market recorded good sales figures, still influenced largely by the offer of zero per cent financing. However, it is better to offer zero per cent deals and keep manufacturing capacity high rather than risk losing market share, say the analysts at M. M. Warburg, who have set a target figure for DaimlerChrysler shares of 62 Euros.
Continue ReadingChanges In Tyre Manufacturer World Rankings
Last year Michelin achieved total sales of $13.4 billion, putting the company ahead of Bridgestone ($13 billion) and Goodyear ($12.5 billion). However, in unit terms, Goodyear considers itself the largest manufacturer with an output of 219 million tyres.
Continue ReadingJD Power Success For Michelin
For the fifth consecutive year Michelin has come top of the JD Power survey for satisfaction in passenger vehicle original equipment and top in the light truck OE tyre satisfaction league. The study has been based on reports from 33,700 consumers in their first three years on new vehicle ownership and reports on satisfaction with OE tyres. Michelin had the lowest percentage of owners reporting a tyre problem in the first year of ownership and more than 60 per cent of users said they would buy Michelin tyres as replacements. This is the highest level of repurchasing of any OE tyre brand.
Continue ReadingContinental President Wennemer Not Enthusiastic
The economic situation in the Chinese market needs to be evaluated carefully, Continental’s President Manfred Wennemer told the German Press Agency (dpa). Volkswagen as a client is currently more valuable than the entire Chinese market. To supply Volkswagen does not entail building a tyre factory or buying a tyre manufacturer. On the other hand, Continental is interested becoming involved with its brakes technology in this potentially lucrative market and will work together with partners in this area.
Continue ReadingMondolfo Ferro’s General Manager Died
In August Dr. Liviano Petrolati (53), General Manager of Mondolfo Ferro, the Italian tyre equipment company, died after a tragic road accident.
Continue ReadingTyreFort Opens In Birmingham
On September 5th, Goodyear Dunlop UK officially opened its new purpose-built head office and national distribution centre, called TyreFort, in Birmingham. The building houses 300 associates, including Goodyear and Dunlop sales and marketing functions and shared functions such as finance, IT, etc. The National Distribution Centre is a 500,000 square foot warehouse, capable of storing one million tyres, and operates 24/7. In a spectacular opening ceremony, Marco Molinari, Chairman and Group MD for the UK welcomed guests, local dignitaries and customers and the official opening was performed by Mike Roney, President, Goodyear-Dunlop Western Europe.
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