8th Tyres/Chassis/Tracks Conference in Hanover
Home match for Continental: Not enough that the company’s head of Tyre R&D and Process Engineering, Heinrich Huinik, had been the chairman of the organising committee for the 8th VDI (association of German engineers) Tyres/Chassis/Tracks conference, the tyre manufacturer, which, after the reorganisation process in recent years regards itself as a whole service supplier, had been on the agenda for both several specialised and the two plenary lectures too. Thus, it was no surprise when, using the sloganGlobal Chassis Control, Dr. Wolfgang Ziebart, member of Conti’s Executive Board, again picked out their system network as a central theme in his plenary lecture. Another main topic of the conference in Hanover was the specialised field of System Integration which had twice the number of lectures than all other specialised meetings, titled Track-Tyre-Interaction, Tyres, Tyre Modelling, Chassis Simulation and Chassis Systems.
Continue ReadingGreater Share In Stomil For Michelin
Michelin has gained another 2.88% stake in Stomil-Olsztyn and now holds 65.78% of the company shares. The remainder of the shares are held by eight to ten owners as opposed to the 40 additional shareholders that existed at the beginning of September. This new structure, according to Michelin, clarifies the structure of the company.
Continue ReadingThe European Market For Agricultural Tyres – Consolidation At All Levels
The worldwide market for tractors has seen many mergers over recent years but, with four big groups, this now seems to be coming to an end. Consolidation among tractor producers was regarded by their suppliers as a negative move, because the tyre manufacturers knew very well that the pressure on oe prices would intensify. In the European original equipment market for tractors, the three market leaders Michelin (including Kléber), Pirelli and Goodyear have a combined market share of 85 percent. This dominance was threatened in 1994, because the big tyre companies all trusted the (completely wrong)forecasts of their oe customers. Instead of the market contracting, the tractor producers found they could increase their sales. This was the hour of smaller tyre market competitors in the field, such as Continental or Firestone, oe exotics like Taurus or Galaxy – and even the hour of some specialist wholesalers: when before had vehicle producers been forced to go to dealers asking for tyres? However, the attack of the smaller tyre competitors was stopped, as the better service of the larger companies asserted itself, and the customer also helped things to return to the status quo. Unlike with car tyres, many buyers order their new tractor fitted with a certain brand of tyre. Because few farmers ask for Titan, Vredestein or Stomil, Pirelli, Goodyear and Michelin/Kléber regained their shares and the market returned to normal, once they had built up enough capacity to satisfy the oe business. Within recent years, market settlement also occurred because the number of independent tyre producers (but not the brands) has dwindled. Specialist producer Taurus (Hungary) and Stomil (Poland) became part of the Michelin group; Barum is a Continental brand. Others were looking for alliances and so the Romanian brand Danubiana (Tofan Grup) was on the wish list of Goodyear, because the US tyre concern found out that it lacked a brand at the economy level. (Later Goodyear managers considered Sava could fit the bill.) The US brand Titan has had a lot of problems in its North American home market and had to sell some niche segments. Israel’s Alliance closed one of two factories, Vredestein suffers under the high prices for raw-materials, Finland’s Nokian even gave the order to Michelin’s Poland plant (Stomil) to produce agricultural tyres because it did not seem sensible to produce this kind of tyre in the Finnish factory. Consolidation in the segment of agricultural tyres has not yet come to an end.
Continue ReadingLondon 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 ReadingFurther Firestone Recall By Ford
Ford has announced that it will replace up to 13 million Firestone tyres fitted to Ford Explorer SUVs. This is double the number of tyres recalled last year and the cost to Ford will be around $3 billion, with the exercise taking nine months. It was this decision which precipitated the announcement from Bridgestone/Firestone that it would sever all ties with Ford; an announcement which caused Bridgestone shares in Tokyo to fall by over 9 per cent.
Continue ReadingCooperation Bandag/Continental Brings Only Advantages
Ron Carver (Bandag) and Dr. Nikolin (Continental) said during a joint press conference held in Hanover, that the cooperation creates a win-win-situation. On the one hand there will be a quality product and on the other hand the franchise net is, according to Carver, strong enough across Europe to guarantee deliveries in the shortest possible time. In the Precure Retreading market more and more customers are insisting on having their own casings retreaded.
Continue ReadingNew Tenneco Vice President
Jean Pierre Dolait has been appointed as Vice President Sales and Marketing, Aftermarket Tenneco Automotive ( Monroe brand suspension products and Walker exhaust systems). Previously at Valeo, Dolait reports to Tennecos General Manager, Aftermarket, Don Miller.
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