Movements In The Car Market
Ford predicts that it will once again reach a 10 p.c. market share in Europe within three years, according to the Wall Street Journal. Luxury car sales will play a large part in reaching the target. Renault and Nissan are moving closer together in Europe, merging their sales organisations. Around 9% of the 5,600 jobs are expected to be lost, saving some 1 billion Euro. By 2002, DaimlerChrysler intends to create 15,000 jobs. 5,000 of these will be in Germany in the service field of leasing, fleet management and fast fit services, according to the Financial Times Deutschland.
Continue ReadingTronchetti Provera Considers Positively The Goodyear/Michelin JV
The Chief Executive Officer of Pirelli, Mario Tronchetti Provera, considers the PAX-agreement between the two tire giants positively. Pirelli is already a developing partner, together with Michelin, regarding PAX and Run Flat Technologies in general. Tronchetti said that Goodyears involvement will further accelerate the development and the promotion of PAX.
Continue ReadingPrice Adjustment For Precipitated Silicas And Silicates
Degussa-Hüls AG of Frankfurt/Main (Germany) is to increase prices by 5% for precipitated Silicas and Silicates effective from June 15. The company argues that energy cost increases could no longer be offset by other measures. Silica is an important component for the reduction of rolling resistance in green tyres, as are rubber silanes and rubber blacks.
Continue ReadingDr. Kessel Names Pirelli As Ideal Partner
In an interview with the German publication Frankfurter Allgemeine Zeitung, Conti boss Kessel said that Pirelli would be an ideal partner for the tyre business, as this would produce significant synergies. To date, there has been no contact with the Italians over this matter.n According to Kessel, Continental need not fear any possible hostile takeover attempt because the car manufacturers would be very interested in maintaining competent and independent suppliers. In addition, the company could rely on strong backing from its individual important shareholders, such as Deutsche Bank, Dresdner Bank and Allianz insurance company, which together hold 16%. Kessel did not mention the fact that, in light of the low stock price, analysts had changed their minds last week and that most, if not all, of them do not regard Continental shares as a buy any longer. Hard times for Continental!
Continue ReadingIs Continental Facing A Hostile Takeover Bid?
An article in the German magazine Wirtschaftswoche suggests that the Thyssen-Krupp group is planning a take-over bid for Continental. Whether or not this is the case, it throws up some interesting possibilities and our article analyses whether such a course of action is feasible and what it would mean to Continental. The article also examines what the effects would be on the European tyre market and how the big tyre manufacturers might react to such an eventuality. Should Thyssen-Krupp mount a successful bid, the chances are that it might decide that Continental’s tyre division is surplus to requirements. Given such a situation, the implications for companies such as Michelin, Bridgestone and Pirelli are enormous and the article explores the different scenarios that might arise from such a course of action and the defensive measures that the tyre giants might take. Is the Thyssen-Krupp bid a figment of the imagination, or an attempt to boost Continental’s share price? The article concludes that Continental is a tempting target for a takeover bid (by somebody) and that its recent strategy makes the group more defenceless than in the past.
Continue ReadingFord Award For Hankook
The Ford Motor Company in Dearborn has bestowed its Q1 award on Hankooks tyre plant in Taejon, which produces light truck tyres for Ford. The factory is located 130 km south of Seoul and produces 65,000 passenger car and light truck tyres daily.
Continue ReadingStatistics Query Firestone as Cause
According to the Washington Post, the Ford Explorer has a higher than average accident rate compared to other SUVs. The report was based on statistical analysis of national and Florida state crash statistics. The report suggests that there is evidence that there may be a vehicle related problem contributing to the accidents.
Continue ReadingSecond-Half Earnings Forecast Revised Downwards By Goodyear
Goodyear, who predicted a slight improvement in its financial fortunes for the second half of the year, is now forecasting break even or a small loss for the 3rd and 4th quarters, assuming economic factors remain the same. The low Euro vs Dollar situation and high raw material costs were blamed.
Continue ReadingThird Quarter Results Released By Michelin
Third quarter results from Michelin are stronger than expected with revenues growing by 16.4% to 3,916 Euro or 14.6% if the first nine months 2000 are compared with the same period last year. Taking higher raw material costs and other economic factors into account, an EBIT of about 8% seems to be realistic for this year.
Continue ReadingContinental Engaged in Persia
Continental makes her know-how available to Iranian company Kerman Tyre and Rubber Company (Tehran) for the production of truck and car tyre radials. Later Kerman will produce its own brand under this technology plus truck and car tyre radials in an offtake agreement under the Continental brand for the Middle East and Central Asia.
Continue ReadingJoint Venture Between Continental and Nisshinbo
Continental Teves and the Japanese concern Nisshinbo Industries (Tokyo) have now signed the joint venture in the field of brake and chassis systems for the Japanese and Korean markets. Continental holds 51 per cent of the joint venture which will be enhanced to become a far-reaching system supplier. For the years 2004 and 2005 an annual turnover of 300 million Euros is anticipated.
Continue ReadingThe Heat Is On For Goodyear
There is a theory that all news stories are born equal. The level of their importance increases as the story reaches the top of the pile on the news editors desk. The Firestone recall moved latent news about possible problems with Goodyear tyres to the top of the pile. The National Highway Traffic Safety Administration have 58 complaints against Goodyear, 46 of which were filed after the announcement of the Firestone recall. Goodyear is facing a pincer movement, on the one hand being accused of being too slow in their introduction of changes made to the Load Range E tyre to improve safety, and on the other of carrying out a silent recall. Learn more about this in TYRES & ACCESSORIES’s December edition.
Continue ReadingSix Millennium Blimps
On the eve of the Millennium, six Goodyear blimps glided over the rooftops of Sydney, Rome, Barcelona, Rio, Miami and Los Angeles and a Goodyear helicopter flew over London. Goodyears aerial cameras beamed live pictures of this unique and historical event all over the world.
Continue ReadingTwo Times Degussa-Huels
Degussa-Huels is a leading supplier for the tyre industry. In Poland the company has just acquired Nafta Polska, a producer of carbon black. In Thailand Degussa-Huels has purchased a 70 per cent share of Oriental Silica, a producer of ingredients for the so called green tyre.
Continue ReadingNokian To Produce Commercial Tyres In The USA
Finnish tyre manufacturer Nokian has confirmed that the company intends to produce commercial tyres in the USA as soon as possible. The first products will be forest tyres, followed by industrial tyres. A spokesman for Nokian said that it had not yet been decided whether the company would build its own factory in the USA, whether there would be some kind of joint venture co-operation, or whether tyres would be manufactured in an off-take agreement. The Finnish company has been active in the US and Canadian markets for some years.
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