Gummi-Mayer Goes to Viborg
Assuming the approval of the Competition Commission, the Danish tyre dealer and retreading company Viborg Gruppen together with the British Legal & General Ventures Limited (LGV) will take over all the tyre distribution activities (150 service centres) of Gummi-Mayer retrospectively from 30th September 1999. The integration of Gummi-Mayer into the existing companies of Viborg Gruppen will create the largest independent distribution and service company in the European tyre business. At the beginning of the year Viborg/LGV took over the tyre distribution activities of Stinnes AG in Germany, Holland, France, Austria and Switzerland and now has a close-knit Europe-wide service net. The sale includes all domestic tyre distribution and service activities trading in Germany under the names Gummi-Mayer and Autechna. All employees will be retained by Viborg, which has the right to the use of the Gummi-Mayer name initially for a period of ten years. Pending the approval of the Competition Commission, Gummi-Mayer will continue to be run by Hans and Franz Mayer. After the incorporation of Gummi-Mayer Viborg Gruppen will have a turnover of nearly 1.4 billion marks with more than 3,000 employees.
Continue ReadingVredestein Fietsbanden Relocates Production To Low-Wage Countries
In order to return to profitability, Vredestein Fietsbanden BV says that it will phase out production of bicycle tyres in Doetinchem, The Netherlands and gradually start up production in countries where the wages are lower. A period of two years has been planned for this and around 125 jobs will be lost in Doetinchem, most of them in the year 2001. The sales and marketing operations will continue to be run from The Netherlands.
Continue ReadingVredestein Trend Continues Upwards
The Vredestein NV group consists of five companies with activities in car, transporter, agricultural and industrial as well as bicycle tyres, boots for consumer markets and industrial applications, recycled rubber, compounds and sealing extrusions. The company employs about 2,200 people in total. The first half of 1999 developed according to forecast, with net profits increased to 600,000 euros – 200,000 euros more than in the first half of 1998. Consolidated net turnover yields rose by ten per cent from 98.1 million euros to 108 million euros, and during the period in question cash-flow was up by 1.1 million to 9.9 million euros. Vredestein Banden’s turnover increased during the first quarter due to the long winter and the resulting good opportunities for selling winter tyres. The first half year was characterised by the Sportrac introduction, a new tyre for the high speed sector (up to 240 km/h) developed in close conjunction with Guigiaro Design, the renowned Italian designer firm. Sales of the new Sportrac have exceeded expectations, according to the manufacturer. Several sizes are not yet available, so the impact of its introduction should be felt in full during the second half of 1999. In the agricultural tyre sector the recently launched AS radial (Traxion+) was well received. Industrial tyre sales developed positively. An important part of the Vredestein group’s annual result is traditionally achieved in the second half of the year, mainly due to the strong influence of Vredestein Banden’s winter tyre sales. Assuming that economic conditions remain stable in the most important European markets, the company is optimistic that it will once again be able to increase last year’s profit.
Continue ReadingMichelin back in Formula 1?
There are persistent rumours that Michelin will be entering Formula 1 from the year 2001. BMW/Williams is the most likely partner. It is expected that Michelin will make an announcement in December this year. Other rumours say that Goodyear intends to return to Formula 1 Racing as well, but research carried out by NEUE REIFENZEITUNG confirmed them to be unfounded. Very recently the Americans even anounced to pull out of the IRL and CART Series in the USA.
Continue ReadingOil Prices To Rise
In the past few days, oil prices have risen US$4.20 to US$26 per barrel. This has caused concern among tyre manufacturers as raw materials comprise about 40-50% of the cost of sales.
Continue ReadingGoodyear Tire Shares Fall
Goodyear Tire shares shed around 10 p.c. of their value after J.P. Morgan Securities warned that investor confidence in management may begin to slip and with it Goodyear’s share price.
Continue ReadingConti’s SWT Awarded “Best of What’s New”
Popular Science magazine awarded Continental’s Side Wall Torsion Sensor (SWT) Best of What’s New in the technical category on 10th November. Conti thinks that this so-called intelligent tyre is a precondition for the use of Electronic Stability Programs (ESP) of the second generation.
Continue ReadingGoodyear Blimp Crashes
Due to computer problems, the Goodyear blimp Spirit of Akron crashed in the United States. Fortunately, it descended very slowly, so that the crew suffered only minor injuries. Nobody on the ground was involved in the accident.
Continue ReadingFire At UK Tyre Wholesaler
One of the UKs leading tyre wholesalers, R. H. Claydon Ltd, suffered minimal fire damage at the end of last week at their Stockport, Cheshire warehouse. The fire started in an adjoining building belonging to another company and spread to the warehouse, but no stock was damaged and the sales division continues to operate normally.
Continue ReadingPirelli Reifenwerke: A Denial Denied
In its August issue NEUE REIFENZEITUNG reported that Pirelli had fallen behind with its plans for Germany, in parts by 20 p.c., and that the attraction of the Pirelli brand was on the wane, with price erosion as the consequence. Dr. Wentz, the Pirelli Reifenwerke boss, it was said, had to postpone his intended retirement, because G. Sala, his successor-designate, was unable to take up his post for health reasons. We also mentioned the possible return to Höchst of Dr. P. Masera as Pirelli Reifenwerke boss. Pirelli declared that Dr. Wentz would stay in office for several more years, and that there was no question of the Pirelli brand becoming less popular, rather the contrary. Results were good, we were told, Pirelli was doing very well in Germany and no redundancies were planned. One month later the head of the group, Tronchetti Provera, announced 2,800 job cuts for this year, 800 of them on the tyre side. In this context Milan made special mention of the significant price reduction in the winter tyre segment and in super-high-performance tyres, especially in the German market. In the meantime Dr. Masera has taken over as Chairman of the management. Dr. Wentz will leave Pirelli Reifenwerke by the end of the year but retain his seat on the board of Pirelli Deutschland AG and is also in line for a seat on the supervisory board.
Continue ReadingGoodyear: Berckholtz Takes Over Original Equipment Germany
Günter Sommer (63), Manager Original Equipment Germany, will retire at the end of the year. Jan Berckholtz (55), Director in the European management for Sales and Marketing Original Equipment Consumer Tires Europe since 1992, will take over his responsibilities and move to Cologne.
Continue ReadingVolkswagen: Corporate Supplier Awards
Volkswagen has chosen 63 of its 10,000 suppliers to receive the Corporate Supplier Award - The Leading Edge. Among these are Contiental Teves (Automotive Systems) and Pirelli (Tyres).
Continue ReadingMichelin’s First Half Results
Michelin has published its financial results for the first six months of 1999. Turnover is up 3.8% on the same period last year to 6,488 million Euros. Operating profit has improved too, from 511 million Euros to 611 million Euros, or 9.4% of net sales. These results are better than those of major competitors Bridgestone and Goodyear, with Michelin benefiting from falling raw material prices and an increase in inventory, allowing the group to absorb fixed costs more easily. Despite a favourable economic environment, Michelin has been unable to reduce net debt, which rose by 1,000 million Euros to 3,800 million Euros. It is assumed that the group requires significant financial investment to further develop the Pax system and to build new C3M factories. Michelin is expecting consumer prices to continue to fall in Europe over the next few years and it is vital for the company to reduce costs significantly in order to be competitive. As part of this process, Michelin has announced that it will reduce its European workforce by 10% over the next three years.
Continue ReadingNew Tyre Show For The UK
On 11th November, The Society of Motor Manufacturers and Traders (SMMT) announced a new tyre exhibition for the UK. The show (as yet unnamed) will run alongside the Automotive Trade Show at Birminghams NEC between 29th April and 2nd May, 2001. The SMMT says that it makes good business sense for tyres to be a part of an aftermarket exhibition.
Continue ReadingM+S Tyres Mandatory In Sweden
From December to March, cars, light trucks, trailers and buses (up to 30 t) in Sweden must be fitted with M+S tyres. In the past, many motorists - particularly in the south of the country - drove on summer tyres all year round, especially on used cars or second family cars.
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