Memorandum of Understanding signed by Continental
Tyre manufacturer Continental and the Moscow Tyre plant have signed a memorandum of understanding which says that Continental will gradually acquire a majority stake in the Russian tyre plant. The company plans to invest 43 million US-Dollars within the next three years, in order to modernise production at the plant and to supply passenger car and light truck tyres of the companys Continental, Gislaved and Barum brands to the local Russian market.
Continue Reading20 Inch Goodyears on 2002 Dodge
Dodge has launched its first 20-inch wheel package on the 2002 Dodge Ram. The Sport-truck models feature 20-inch Eagle touring performance tyres and 20-inch Wrangler light truck tyres. Goodyears Doug Calaman said the firms engineers had worked closely with Dodge to develop the Eagle LS P275/55R20 touring tyres for the 4x2 truck – P275/60R20 are featured on the 4x4 truck. The 20-inch wheels allow the Dodge trucks to offer the largest-in-class braking system.
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.
Continue ReadingKorean Tyre Manufacturer Helps American Victims Of Terrorism
Tyre importer, Hankook Tire America has joined Goodyear, Michelin, and Bridgestone in donating funds to assist the victims of the terrorist attacks on the 11th September. 100,000 dollars are being donated to the American Red Cross.
Continue ReadingRetail Distribution Of SmarTire Begins
SmarTire Systems, the tyre pressure monitoring equipment supplier, has launched the US distribution of its new aftermarket products through the Tire Rack and Big O Tires. SmarTire CEO, Robert Rudman says, These orders follow our initial distribution in Europe and represent the beginning of our marketing strategy for SmarTires aftermarket products in North America.
Continue ReadingSlight Rise In Turnover For Goodyear In Third Quarter
Goodyear Tire & Rubber has announced worldwide sales in the 3rd quarter of $3.7 bn (Q3 2000 = $3.6 bn). Net income for the same period was $9.3 million, compared to $17 m for Q3 last year. For the first nine months of the year, the company posted a net loss of $29.6 m, compared to net income of $142.3 m for the equivalent period in 2000. Sam Gibara spoke of a general economic slowdown and tough market conditions in many regions. However, one plus point for the company was a market share gain of 3 per cent in the US replacement tyre market.
Continue ReadingAnalysts Recommend Michelin Shares As A “Buy”
Cheaper oil prices and the result of the Firestone recall in the US make Michelin shares a buy, according to analysts from the Deutsche Bank. Despite weakening demand in the US - the worlds biggest tyre market – Michelin is gaining market share and selling more tyres than ever. Market observers believe that it will be possible to obtain better prices for tyres in the region of 3 to 5 per cent.
Continue ReadingThe French Connection: Arc-en-Ciel
The French tyre trading network Arc-en-Ciel claims to be the largest European chain of independent tyre dealers. In 1986, there were only twelve members, but this has grown to a network of 850 outlets in Europe, 386 of which are in France. Every year, 20 new members join the group, it is claimed. In France alone, Arc-en-Ciel distributed around 2.9 million tyres in 1999, with the group holding 11% of the car/van tyre market, 9% of HGV and 18% of the agricultural tyre market. The Arc-en-Ciel branding is memorable – the name means rainbow in French – and this is carried over to a range of own brand products, which, of course, includes tyres that go under the name Eurotyre. As Arc-en-Ciel spreads across Europe, its strength increases. In addition to the French network, the group has a presence in six European countries, including 71 depots in the Benelux and 168 in Spain. Further expansion is envisioned in Portugal and in eastern Europe. Besides its fast-fit operation, Arc-en-Ciel has introduced a 24-hour replacement tyre service for hauliers in 14 European states.
Continue ReadingNo Recommendation For Goodyear Shares
UBS Warburg have placed Goodyear shares on Hold and is of the opinion that under current conditions a price of 15 dollars would be justifiable, per share. This figure is much lower than the current 25 dollar price. Goodyear shares in the past 12 months have fluctuated between 29.50 and 15.60 dollars.
Continue ReadingMore Action For Bridgestone
The beleaguered north American division of the Bridgestone Corporation is under yet another attack as a Philadelphia law firm has filed a class action lawsuit in Nashville accusing the company of stock fraud. The lawyers claim that the firm misrepresented its fiscal viability to stockholders by concealing claims against them in the ATX tyre failure episode. Further, the firm failed to disclose the cost of settlements and of replacing tyres. The law firm is seeking involvement from all investors who bought Bridgestone stock between March 31,1998 and August 31, 2000.
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