Michelin – Greater Than Expected Growth
Michelin has done quite well in the first two months with an increase in volume of about 4 per cent. Analysts hope that this growth has not led to an inventory build-up among dealers. All in all they see Michelin as the best company among the big tyre manufacturers.
Continue ReadingGoodyear: Good Or Bad News?
According to DB analyst R. Lache from NY, quoted in a business newspaper in the US, the problem for Goodyear at the moment is that the manufacturer has cut high discounts for 8 distributors, who are now reluctant to buy tyres from Goodyear, thus putting more pressure on the company. The good news is that Goodyear is sticking to higher prices. Despite the fact that the analyst is sticking to his 36 US$ expectation, he reduced the share from Strong Buy to Buy.
Continue ReadingGoodyear Shares In Free Fall
Due to the unexpectedly weak sales in the first two months, Goodyears share price yesterday fell by more than 9 per cent in a few hours. Analysts regard some of the problems as self-inflicted and reduced the share from Buy to Market Perform.
Continue ReadingYear To Date Performance From Goodyear
Goodyear has released details of the groups performance in various markets, for the year to date, to end February. Brief details are as follows:North American Tire: February industry shipments of consumer replacement tyres were 8 per cent up on last year. Goodyear shipments to dealers were flat, as some dealers pre-bought at the end of last year. Goodyear shipped 400,000 tyres as part of the Ford replacement programme. Industry shipments of commercial tyres were 14 per cent up on last years levels. Goodyears shipments were up, but not as high as the industry figure. Industry shipments of OE tyres were up 10 per cent for car tyres and down 17 per cent for commercial tyres. Goodyears unit shipments outperformed the industry.European Union: Consumer replacement tyres: industry shipments + 3 p.c. Goodyear shipments lower. Commercial replacement tyres: industry shipments - 6 p.c. Goodyear shipments reflect this figure. Consumer OE tyres: both industry and Goodyear shipments up. Commercial OE tyres: both industry and Goodyear shipments down.Eastern Europe: No segmentation available, but Goodyear replacement tyre sales were up, due mainly to market recoveries in South Africa and Turkey. Goodyear OE tyre sales were down slightly.Latin America: Goodyear replacement tyre sales down, mainly in Brazil and Argentina. OE sales were up. Currencies in Brazil and Mexico were revalued, but this was offset by devaluations in Argentina and Venezuela.Asia: Replacement tyre sales were up from last year, while OE unit sales were slightly down. Improved volumes in China and India helped improve operating margins over last year.
Continue ReadingWorld’s Largest Tyre From Michelin
Michelin has produced what it claims is the worlds largest tyre. The new radial XDR 59/80 R63 has been developed in conjunction with Caterpillar for its new 797B, the largest truck in the world, designed for use in large surface mines and weighing more than 600 tons. The tyre is more than 13 feet high, nearly five feet wide and weighs more than five tons. The tread depth is 4.5 inches and the tyre can carry a load in excess of 100 tons.
Continue ReadingTyre Modelling Software Devised By Sumitomo
In conjunction with the Japan Research Institute, Sumitomo Rubber Industries has developed tyre modelling software for car manufacturers. It is based on SRIs existing DigiTire virtual design technology and features a simplified display that makes it simple to calculate properties such as tyre load.
Continue ReadingFire At Japanese Fibre Plant
Japanese chemical company Asahi Kasei Corp. suffered a fire at its synthetic fibre plant in Nobeoka, in the southwest of the country. Nobody was hurt, but 9,400 people were evacuated as a precaution against possible toxic fumes. The company supplies nylon resins to all Japans tyre manufacturers, but even though the factory will be out of commission for some considerable time, the effect on the tyre producers is expected to be limited, with manufacturers switching to other suppliers or, in the case of Bridgestone, to in-house production.
Continue ReadingResearch And Development In The Tyre Business
Each year in spring the schedule of our editorial staff fills with new tyre launches. What is the reasoning behind the development of more and more new tyres? Is it because customers constantly demand new products? Do they really ask for two per cent more grip on wet roads or three per cent more safety on aquaplaning? Hardly. Many surveys show that customers do not care much about their tyres. Sometimes they do not even know the size of the tyre on their car never mind the correct tyre pressure. And although many customers make the decision which tyre to buy after consulting the test results published in the big German magazines, there is no such thing as a consumer pressure on the tyre manufacturers to develop new tyres. More often the industry itself maybe is disappointed with the test results and this might then be a motivation create new products. But indisputably, the greatest drive comes from the car manufacturers. They are constantly demanding higher performing tyres for ever higher performing cars. This is the reason why NEUE REIFENZEITUNG visited the research and development departments of several car and tyre manufacturers to get an impression how they are working together, and to follow up the route of a new tyre from the first sketches to the start of the production. Therefore we will focus on these details in an intermittent series starting in this issue with a very general introduction.
Continue ReadingContinental: Go West
Last year Continental did not perform as well as its managers expected: unprofitable commercial tyre division, failed ContiTech sale, heavy losses in the North American tyre business unit. Then, in September there were the changes at top management level: Dr. Stephan Kessel quit, Manfred Wennemer replaced him. He announced – immediately after assuming the responsibility – some wider restructuring measures. All parts of the company are under scrutiny, and there are no holy cows, he emphasised. Following this statement we heard the announcement of closures like the factories in Traiskirchen/Austria or in Herstal/Belgium. However, there has been a commitment to the commercial tyre business and to activities in North America, although the target is clear: a return back to profitability. New high mileage truck tyres like the HSR 1 (also featured in NEUE REIFENZEITUNG) are a first step in the commercial tyre business. With an increasing marketing budget and new tyres for the North American market, Dr. Ulrich Wellen, new President and CEO at Continental Tire North America since the beginning of this year, holds out hope for a turnaround in the USA too.
Continue ReadingAluminium Wheels Becoming Standard
The enthusiasm for aluminium wheels is diminishing. The golden years - mainly in the Eighties - of light alloy wheel are over - for the OE as well as in the aftermarket.Yet European original equipment demand for aluminium wheels is still growing. Year on year, by around about one million pieces. However, we have to accept that new materials and methods of production can make steel wheels as light as aluminium wheels. If the suppliers can make progress in styling and the car makers are forced to make smaller and middle class vehicles cheaper there might be a turnaround in the current trend.Some companies are in trouble. Even the worlds biggest wheel manufacturer Hayes Lemmerz in America had to be rescued under Chapter 11. On the other hand, there are success stories from companies like Superior in North America or Borbet in Europe. Companies like BBS or OZ are still doing good business because they are not interested in volume but rather in selling exclusive (and expensive) wheels. The middle-price sector has been absorbed by the low-priced segment of high volume companies. The flame of the aluminium wheel business flickers weaker and weaker.
Continue ReadingVredestein Ultrac
Vredestein and Giugiaro have teamed up for a second time to produce a stylish ultra high performance car tyre - the Ultrac. This follows the success of the Giugiaro designed Sportrac, which encouraged Vredestein to ask the Italian design studio to work with them on their first venture into the UHP segment.The result is a variation on a theme, the now familiar extended deep vee tread pattern has been touched by natural influences and now follows a sweeping pattern taken from nature, using the veining of a leaf as inspiration. Many will wonder whether a tread pattern designed by a stylist is as effective as a tread pattern designed by a tyre technician, but by adopting the rule that form follows function, the result is a tyre which appears to perform as well as any of its UHP competitors.The real innovation though is in the compound and the building of the tyres. The Silica Silane compound turned the mixing process into a chemical reaction which had to be time and temperature controlled. Further, the tyre building required an accuracy offered only by new tyre building lines. Vredestein invested some 50 million Euro in production facilities for the Ultrac. It is a venture which leads the Dutch manufacturer into the burgeoning UHP sector, however, MD Rob Oudshoorn told NRZ, We dont consider this as a growth market, we see it as another opportunity to sell tyres.
Continue ReadingTire Pressure Control At CeBIT
IMST GmbH (Kamp-Lintfort/Germany) and Automotive Technology NOLEX AG (St. Motitz/Switzerland) claim its jointly developed Tire Pressure Control (TPC) system to be a highlight of its own booth at the CeBIT computer show in Hanover. According to IMST the system is the first equipment of this kind for passenger car and truck tyres with bi-directional communication. In contrast to the current systems this allows to read out directly the sensors inside the tyres, giving the opportunity to receive the actual pressure situation at a touch of a button – independently of automatic intervals. This new system is a one-antenna-only design, which can reduce the time needed for installation. Due to the special housing design with a variable docking to the valve the tyre module can – as IMST and NOLEX say – be used for every wheel form without mechanical adjustments. It is ready to operate world-wide by only small amendments. TPC also opens up the possibility to combine tyre pressure control with keyless entry with the pressure data transmitted to the remote control key when opening the car.
Continue ReadingGoodyear Employees Hold 22 Per Cent Of Stock
In conversation with analysts, Goodyear disclosed that it holds 35 million Goodyear shares in its 401 K Savings Plan, 20 million from salaried employees and 15 million from blue collar workers. This means that Goodyear employees hold 22 per cent of outstanding Goodyear stock. Some analysts, including those from Deutsche Bank, are sticking to their buy recommendation.
Continue ReadingCooper Predict Greater Than Expected Earnings
Cooper Tire & Rubber Company expects its earnings for the quarter ending 31st March, to be at least 50 percent higher than initially announced. This is directly due to the exceptional success of sales so far this year.
Continue ReadingProduction Of MIRS Tyres In Höchst, Germany Going According To Plan
Pirelli’s German MIRS factory is now producing OE tyres for the Mini-Cooper car in size 205/45 17 Eufori@. Production is running with three lines and two others are being built, which will be producing tyres at the end of the year. Ultimately, in late 2004 or early 2005, there will be 13 lines producing 1.5 million high performance tyres a year, mainly for OE. At present, there are 50 people working in the MIRS factory and this will eventually rise to 250, including service staff. Total costs will be more than 100 million Euro and possibly as high as 120 million; Pirelli will not reveal the exact figure. MIRS makes it relatively easy for Pirelli to grow steadily in certain markets over a period of time, and this is the main advantage of the process, as it is not necessarily cheaper than the conventional production of UHP tyres. The first MIRS factory in Milan is a prototype plant, which develops and creates opportunities for new products. As well as Höchst, there is a MIRS factory at Burton-on-Trent, UK, which is not as large, and another MIRS plant at Rome, Georgia, USA is under construction. The plan to build a MIRS factory in Latin America has been abandoned, but Pirelli could build a plant in Japan, although no specific plans for a production base in Japan for OE business have been revealed.
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