Hose Disputes For Goodyear
Goodyear is being sued by four New York homeowners over allegedly leaky heating hose, which has caused damage to their houses. The hose, called Entran II, was usually installed under floors to heat homes - it was removed from the market in 1993. In Colorado earlier this year, Goodyear was ordered to pay $23 million to a property developer who used the hose in his buildings. Other lawsuits are pending. Goodyear is appealing the Colorado decision and says any problems lie with improperly designed heating systems, rather than the hose. Two years ago, a federal jury found no blame attached to Goodyear in a dispute with a customer, Heatway Systems, who used Entran II in its heating systems and is now facing hundreds of claims.
Continue ReadingBridgestone Group to Expand Global Production Capacity
Bridgestone Corporation has announced that it and its subsidiaries will expand their collective production capacity worldwide. It also announced that the Bridgestone Group will realign the geographical distribution of production capacity for different kinds of products. Bridgestone and its subsidiaries will invest approximately 250 million dollars in the production expansion and realignment, according to the announcement. The moves are measures to cope with the shift toward larger sizes of passenger car tyres in the industrialised nations and the growing demand for commodity-grade tyres in the newly industrialising economies of Asia and elsewhere.
Continue ReadingAnother Knight For Kwik-Fit
Reaction continues to the sale of Kwik-Fit to CVC, who have announced that chairman of the new company will be Sir Trevor Chinn, the outgoing chairman and former chief executive of Lex Service. Analysts are still debating the deal, with the consensus being that Ford overpaid when buying the company in 1999. Ford denies that the accounting irregularities at Kwik-Fit, where liabilities were understated by 3.4 million Pounds (5.3 m Euros), depressed the selling price. Ford says that the low valuation represents present market value, but many think that, by paying 330 million Pounds for 81 per cent of a business which turned over more than twice that last year (2001 turnover was 762 million Pounds), CVC has got a good deal.
Continue ReadingRecall Scare Hits Bridgestone Shares
Bridgestone shares dropped by 5.4 per cent following the filing of a lawsuit by an American lawyer, calling for the recall of 27.5 million Bridgestone Steeltex tyres. Potential costs of the action are estimated at $2.75 bn. The fall in share price and possible damage to brand image appear to be unwarranted, as the National Highway Traffic Safety Administration has already investigated the tyre and officially announced that it found no defects on Steeltex tyres.
Continue ReadingBig City Tyres Closes
Midlands-based, three-depot retailer Big City Tyres is to close down, as chairman Stephen Belcher is retiring. The Leicester and Coventry depots have been bought by the Mr. Tyre chain and the Nottingham depot has been acquired by Peter Callicott, a former director of Big City Tyres and ex-area manager Chris Simpson.
Continue ReadingTurnover And Profits Up For Nokian
Nokian Tyres has released its figures for the second quarter. Looking at the figures for the first six months, both turnover and operating profit were up on 1H 2001. Turnover rose 12.6 per cent to 193.3 million Euros (1H 2001 171.6 m Euros) and operating profit was 8.7 m Euros (6.7 m). Net profit was 1 m Euros (-0.8 m Euros). The good figures were the result of price increases, improved product mix and lower material costs. Most product groups showed increased sales, with the exception of retreading materials, and the Vianor retail chain lost 2.5 m Euros.
Continue ReadingCVC Capital and Ford Shake Hands On Kwik-Fit
Ford has announced its intent to sell Kwik-Fit to CVC Capital Partners, a leading European Equity group. The price being paid is 330 million pounds in cash and a note that will be paid as CVC obtains outside financing. The proposed transaction will be completed using a new company formed for the purpose, and financed by funds under the management of CVC. Ford will retain a 19 percent equity interest in the new company in order to benefit from the businesss future growth. The sale is expected to be completed in the fourth quarter of 2002 and is subject to regulatory approvals. Ford will record a one-time, after-tax charge of approximately $500 million in the third quarter of 2002 related to the sale of Kwik-Fit. Collision Team America has also been sold, though Ford has withdrawn from the sale of Hertz Equipment Rental Corporation. We are pleased to have found such suitable owners for both Kwik-Fit and Collision Team of America, said Martin Inglis, Ford group vice president, business strategy. Although these are good businesses, they dont align with our back-to-basics strategy. These sales further signal the progress that Ford is making on key parts of our Revitalization Plan.
Continue ReadingBetter Times For Bridgestone
Bridgestone Corporation appears to have come through the Firestone recall nightmare, with first half figures showing a net profit of nearly 24.5 billion Yen (218 million Euros), compared to a loss last year of 30.5 billion Yen. The company has increased its profits forecast by 5 billion Yen to a full year profits figure of 70 billion Yen and also announced that production would be increased at 12 plants over the next two years, boosting annual output by 8 million tyres. Bridgestone shares in Tokyo rose 6.4 per cent at the news, reaching 1,685 Yen.
Continue ReadingHigh Court Approves Tyre Burning At Westbury
The High Court has judges that the Environment Agencys authorisation to burn tyres at Westbury, Wiltshire is valid. Mr Justice Silber who presided over the case at the Royal Courts of Justice in London upheld the EA decision on every ground it had been challenged on. We are very pleased with the outcome of this case. This judgement gives further reassurance to Westbury residents that the Environment Agency is successfully protecting human health and the environment, said Colin Babb for the Environment Agency. The decision to authorise tyre burning came after a year long public consultation and an in depth study into the companys application. The consultation included the Wiltshire Health Authority and some of the countrys leading health experts resulting in a comprehensive 160 page long decision document.
Continue ReadingGoodyear To Certify Balance Sheet Accuracy
Following the recent examples of some US companies over-stating their profits, a rule has been introduced whereby organisations with a turnover exceeding $1.2 billion - and there are 947 listed - have to submit sworn statements certifying the accuracy of last years balance sheet and of figures for the first half of this year. The statements have to be with the US SEC-Commission by August 14th. Goodyear is one of the 947 companies and the accounts have to be certified by CEO Sam Gibara and CFO Bob Tieken.
Continue ReadingHankook Raises 90 Million Dollars In China
Hankooks Chinese operation is planning to raise 90 million dollars in capital. This will be used to meet maturing debts and facilitate expansion. Some 50 million dollars of the funding will be guaranteed by Hankook.
Continue ReadingJohnson Controls To Buy Varta
Johnson Controls, one of the leading automotive parts suppliers to the vehicle manufacturers is set to buy Varta for 312.5 million Euro. Johnson expect the deal to raise annual battery sales by 33 percent and increase its strength in the European market. The deal will give Johnson total control of Varta Automotive and an 80 per cent stake in VB Autobatterie, the remaining 20 per cent being held by Robert Bosch.
Continue ReadingGoodyear Appointments
Gary D. Forsee (52) has been elected to the board of directors of the Goodyear Tire & Rubber Co. Forsee is vice chairman of domestic operations for the BellSouth Corp. and is described by Sam Gibara, Goodyear CEO as a seasoned business leader with global experience in operations, marketing and strategic planning. Goodyear has also appointed three corporate officers; Kathleen T. Geier (45), senior vice president, human resources; John G. Loulan (56), vice president, operations and Darren R. Wells (36), vice president and treasurer.
Continue ReadingDirector For Continental UK
In the UK, the Continental Tyre Group has appointed Arthur Gregg as Business Director, Commercial Tyres, responsible for truck, agricultural, industrial and earthmover tyres for all Conti group brands. He will also oversee the management of the ContiNetwork chain of independent tyre dealers and Contis tyre management services. Gregg was formerly Sales and Marketing Director of ArvinMeritor and has worked for Bridgestone/Firestone UK and Michelin Tyres.
Continue ReadingNew Owners For Alloy Wheels International UK
Allied Wheels International, based in Rochester, Kent, has been bought by Fintrade. It is expected that existing staff will be retained and the company intends to develop a range of wheels for the aftermarket, while continuing with its current OE business.
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