Chinese JV Company “Will Make Warrior And Michelin” Tyres
The joint venture has been confirmed between Michelin and the Shanghai Tyre & Rubber Co. to make radial tyres, steel cord and compounds. The new company will be called Shanghai Michelin Warrior Tire Co. and the JV is worth US$200 million. Michelin has a 70 per cent stake and STRC 30 per cent. Reports from China say that the company will continue to produce Warrior brand tyres and, at some time in the future, Michelin group products.
Continue ReadingVauxhall Masterfit Reaches 250
Vauxhalls dealer franchise fast fit operation now operates 250 outlets in the UK. The expansion of the fast fit chain within the dealer network emphasises the importance of the fast fit market to the viability of the UK car distributor network. The sector is growing in importance as it increases market share, taking fast fit tyre and exhaust business from the shrinking independent fast fit sector.
Continue ReadingBank Analysts View C3M Factory Tyre Production
At its so-called annual strategy day, Michelin had only partly good news to tell. Following the disastrous Firestone tyre recall, the price increases in the US-replacement market appear to have stuck. However, recent price increases in the US truck tyre replacement market have not held and this is squeezing the EBIT margins. For the first time ever, analysts were allowed to see a tyre made by the C3M process. Michelin is convinced that it can increase market share significantly in the UHP market with the help of C3M, while analysts from Deutsche Bank see C3M as a key driver to achieve an EBIT margin of 10 per cent in 2005, compared to 7.6 per cent in 2000.
Continue ReadingWheel Supplier Superior Hit by Ford Production Cuts
The cut in production of 60,000 units Explorer and Ranger models by Ford in the second and third quarter could cost aluminium wheel maker Superior $2.5 million in revenue.
Continue ReadingReifen Gundlach: Successful Marketing of Gajah Tunggal Tyres In Germany
The two managing directors of Reifen Gundlach, Gebhard and Joachim Jansen, once again invited a number of important guests to visit the Gajah Tunggal factory in Jakarta. This journey was to make it clear to everybody that, with the German wholesaler on one the side and the Indonesian tyre manufacturer on the other, two promising partners have been found to make progress in the hotly-disputed home market. The official reason for visiting the company was the introduction of the latest uhp tyres GT Radial Champiro HPZ 40/45 and the Maxmiler CX, which could also be tested on the Sentul racing track. For the management it was important to keep in touch with the world’s leading tyre manufacturers. Referring to marketing, GT was already cooperating with the German wholesaler Reifen Gundlach before the Japanese world trading group Itochu acquired a majority holding in the trading enterprise from Raubach, in September 1998, which is said to be have since grown to 75 percent. Reifen Gundlach’s market acceptance has grown so far, because being part of Itochu has been very important, not least, for the cooperation with Michelin. This is a strategic partnership selected by Reifen Gundlach, in order to bring those customers to the tyre manufacturer that it finds difficult to reach, and to help Reifen Gundlach itself to successfully expand its tyre range.
Continue ReadingProtectionist Tax In Tanzania Harms Locals
The Tanzanian parliament was told yesterday that the Arusha-based General Tyre factory was coping with producing passenger car tyres but was failing to produce truck tyres. Government taxes on imported truck tyres were punishing domestic businesses which had little choice but to buy imported Bridgestone and Michelin truck tyres.
Continue ReadingTelecom Italia Deal “Could Lead To Pirelli Merger”
There are reports in the press that the recent deal whereby Pirelli acquired control of Telecom Italia, could result in some sort of merger, perhaps even a three-way alliance between Pirelli, Olivetti and TI. Pirelli Chairman Marco Tronchetti Provera says that the structure above Telecom Italia needs to be simplified but he could say no more until all options had been studied and evaluated.
Continue ReadingLegal Threat From Bridgestone
Bridgestone President Shigeo Watanabe has said that the company is prepared to sue US regulator National Highway Traffic Safety Administration if that organisation were to order another recall of Firestone tyres. Last week the NHTSA asked Bridgestone/Firestone to recall more tyres, but the company refused, threatening court action if the NHTSA declared the tyres defective. At a news conference in Tokyo, Shigeo Watanabe again said that the investigation should focus on both tyres and vehicles. Fears over the possibility of protracted legal action were reflected in a fall of over 15 per cent in Bridgestones share price.
Continue ReadingRestructuring For Smartire Strategic Alliance
Smart tyre technology market leader Smartire has announced a restructuring of its strategic alliance with TRW. Elements of agreements entered into during the research and development process in 1998 will be cancelled. Smartire is to pay TRW $3.3 million (3.7 million Euro) in cash and debt in regard to the transaction. TRW will continue to hold a considerable equity in Smartire, but the restructuring of the alliance will allow both companies to fully pursue a wide range of global market opportunities.
Continue ReadingTire Inflation System For Truck Trailers From ArvinMeritor
ArvinMeritor has announced that the Meritor Tire Inflation System (MTIS) has been selected by Great Dane Trailers as standard equipment on the companys Classic Refrigerated Van Lines. Great Dane is one of the worlds largest manufacturers of refrigerated trailers.
Continue Reading3Q Earnings Revision For Goodyear
Goodyear has revised its earnings outlook for the third quarter of 2001, downwards, Net income per share is be similar to the second quarters 5 cents per diluted share. This compares to 11 cents per share for the third quarter 2000. Goodyear says that an already slowing demand had weakened further in the aftermath of the terrorist attacks on the USA.
Continue ReadingContinental’s Results Have Slowed Down And Redundancies Are Possible
Compared to last year, Continental Group’s turnover for the first nine months of 2001 has increased from 7,438 billion Euro to 8,240 billion Euro (a rise of about 10.8%). The Group’s operational result (EBIT) of 238 million Euro (385 million Euro in 2000) has especially been affected by the North American tyre business and a non-recurrent expenditure of 58 million Euro due to the reconstruction process, begun in the second quarter and which has resulted in the closure of the truck tyre production site in Herstal (Belgium) and the remoulding site in Bad Nauheim. The Group’s result before tax has fallen by 160 million Euro down to 96 million Euro. After tax of 44 million Euro, the result is 104 million Euro more than last year’s amount, and the earnings per share are 0.35 Euro (1.16 Euro in 2000). Presenting the quarterly results at a press conference, Manfred Wennemer, who was appointed Managing Director on 11th September 2001, explained the Group’s directional change, concentrating on profits, results and cash flow and on cutting down financial debts, which also involves focusing on profitable transactions and devolving profit-and-loss responsibility on to the Business Units. Additionally, Wennemer announced some bigger restructuring measures: All parts of the company are under scrutiny, and there are no holy cows, he emphasised, adding the comment that factory closures and redundancies could be a possibility.
Continue ReadingGerman Acquisition For Watts
Watts Industrial Tyres has strengthened its European operations by the acquisition of Kollenbach, of Rheinberg, Germany. Said Jean-Paul Mindermann, MD of Watts-Industrie Reifen: We had outgrown our own premises in Langenfeld and the Kollenbach acquisition has enabled us to double our operation in the Ruhr area.
Continue ReadingMore And More E-Commerce In The Tyre Business
Late – at least compared with other businesses – but not too late, the tyre industry and trade have realised the importance and the possibilities of e-commerce and for todays business. But this late discovery is not really a surprise because automotive and related companies are naturally not so closely related to the topic as, for example, the electronics or the communications businesses. It is therefore perhaps not surprising that a study by Economist Intelligence Unit (EIU), carried out in co-operation with KPMG Consulting, reveals a lower interest among companies in the automotive sector – again only in comparison with other businesses – to expand their e-business activities, although in the meantime the internet is becoming more and more accepted in the tyre business. Two or three years ago there were only a few investing in this new media. But since last year, the number of tyre and wheel related online shops or portal sites is constantly growing. And even the tyre manufacturers themselves are investing more and more in internet facilities. Details can be found in NEUE REIFENZEITUNG’s e-commerce feature in January.
Continue ReadingShow A Little Respect
A survey among 720 chief executives worldwide, conducted by the Financial Times and PricewaterhouseCoopers, lists the worlds most respected companies. There are no tyre companies in the top fifty and the only mention of a tyre manufacturer is of Michelin, who was placed equal sixth in a separate section headed The Worlds Most Respected Engineering Companies.
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