Michelin Price Increase
After Continental and Goodyear, Michelin is now planning a price increase of 3%, which would be equivalent to absorbing an increase in raw materials (Rubber, Oil) of about 12%. Due to the fact that raw material prices are continuing to grow it seems unlikely that much of the price increase will benefit the manufacturers.
Continue ReadingContinental Shares Like Lead
Despite excellent results and an on-going buy recommendation from Deutsche Bank, Continental shares are not rising. The management has announced that the intelligent tyre is to be fitted as OE from 2003 but refuses to name the car manufacturer. The management also feeds speculation regarding a joint venture partner for brakes in Asia. Will this help the share price to rise?
Continue ReadingShort-Time Working For Goodyear Wolverhampton?
Goodyear has suspended the guaranteed minimum 42-hour week for workers at its Wolverhampton plant. Union sources expect short-time working for many employees, blaming the strong pound, high stock levels and a decrease in sales to Rover. The union says that sales to Rover currently account for 5% of production.
Continue ReadingNokian Tyres Strengthens Retail Network
Nokian Tyres strengthens its retail network by purchasing Rengasmestarit-Kumi-Helenius Group that has 31 tyre retail outlets in Finland. After the acquisition, Nokian Tyres retail network covers the whole of Finland. The purchase price is 8.3 million euros. In 1999, the companys net sales amounted to approximately 34 million euros and it employed 240 people.
Continue ReadingStock Exchange Mostly Friendly
While Toyo shares dropped at the end of April/beginning of May, those of two other Japanese manufacturers, Bridgestone and Yokohama, gained. The share prices of Continental, Cooper, Goodyear and Michelin too.
Continue ReadingPoor Start To 2000 For German Vehicle Registrations
The German Automotive Industry Association (VDA) reports that vehicle registrations in Germany dropped by 10 per cent in March and 8 per cent overall for the first quarter of this year. It is anticipated that the German vehicle market will remain weak for the time being and a decrease in domestic orders by 10 per cent is likely for the whole year. At the same time, exports are expected to rise by 6 per cent
Continue ReadingGerman Rubber Industry Growth
The German Rubber Association W.d.K. (Wirtschaftsverband der deutschen Kautschukindustrie) has announced that total sales of rubber goods increased 4.4 per cent in the first quarter of 2000. Sales of technical products rose 5.8 % and tyre sales increased 3.3 %. However, the W.d.K. continues to worry about increasing material costs (rubber, oil, carbon black).
Continue ReadingPan-European Tyre Contract For Michelin
Michelin has won a five-year contract to supply trailer tyres to Transamerica Trailer Leasing (TTL) across Europe. TTL is Europes second-largest trailer leasing company, operating more than 21,000 trailers. The company is based in Barking, in the UK and has offices across Europe. It is owned by a Dutch bank. Michelin tyres will be specified as exclusive OE fitment on new trailers, while Michelin new and Remix tyres are being fitted to the fleet. No details of the value of the contract have been revealed, but TTL currently spends more than US$5 million on tyres annually.
Continue ReadingCragar Industries No Longer Manufacturing Wheels
1999 Cragar Industries (Phoenix/USA) sold most of the assets of its wheel business to Weld Racing and to Carlisle Tire & Wheel. The remaining assets have now been sold to midwest distributor PDK, Inc. and so the company has abandoned its (until now) core business of producing and distributing wheels. Cragar is still in the wheel business as the licensor of its brand, but is focussed now on Internet business.
Continue ReadingClosure Of Two Uniroyal Factories In Mexico
Uniroyal S.A. Mexico, daughter company of Michelin North America, has confirmed the closure of their two factories in Tacuba and Queretaro. 760 employees are affected and will receive a severance package. Uniroyal Mexico says that it was not possible for the two factories to produce tyres cost-effectively and the company was losing money, while imported tyres were making a profit. Other possible reasons for the closure, for example political or environmental reasons, were strongly denied.
Continue ReadingMore Technology Partners For Rubbernetwork.com
Rubbernetwork.com, the global market place for the tyre industry, has entered into an alliance with IBM, i2 and Ariba, who will connect the software of individual member companies to the network.
Continue ReadingNow Accused As Well – Goodyear
A group of lawyers has accused Goodyear in the USA, saying that either the exploded Concorde tyre was of faulty manufacture, or that the testing programme was not strict enough. Consumer solicitors want to sue for amounts around US$ one billion, but their chances of success might not be as high as they are expecting.
Continue ReadingSales Target Of 10 bn Euro In 2000 For Continental Achievable
The German group aims to achieve 10 bn Euro in sales this year. After having presented the half year figures for 2000 this is still likely, but they cannot improve the Earnings previously predicted. While Teves and ContiTech are in EBIT better than last year, the truck tyre division could improve the EBIT by five million to 33 million Euro. The p.c-tyre division is 24 million Euro in EBIT below the first half of 1999 despite an increase in sales of 4%. The situation with General Tire is poor. The companys sales climbed by 23% (in dollars only by 8%) but the EBIT is 20 million Euro below the comparable time last year. General Tire will have difficulties avoiding red figures this year.
Continue ReadingQuality Seal For Online Shopping
German tyre dealer Reifen Mayerosch (Wolfersheim-Berstadt) has been awarded a quality seal by Trusted Shops for his online shop offer komplettradkauf.de. Trusted Shops examines the quality and security measures of internet shop companies.
Continue ReadingNo News Would Be Good News
The Wall Street Journal questioned whether Goodyear acted too slowly, or put cost before safety regarding the tyre problems in the USA. Samir Gibara, for Goodyear stated, Our engineers determined that the tyres were not defective, so there was no recall. The outcome of the case could have a serious effect on the way in which manufacturers introduce quality improvements to their ranges in future.
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