Continental: 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 Reading“I’m Not Bidding” – Tom Farmer
A report in a Scottish newspaper quotes Sir Tom Farmer (61) as saying that he is not going to bid for Kwik-Fit. The Glasgow Herald report follows an article in the financial newspaper Business AM, which suggested that Farmer had tabled a bid, backed by the Bank of Scotland. He denied this, saying: I am not going to bid and that has always been the case. But it seems that the more I say, the less people believe me. Ford are reported as having whittled down the number of bidders to six from 35 and the winner will be named in May.
Continue ReadingRound Two: Evans Versus Gibara
Some weeks ago, Akron Beacon Journal business columnist Diane Evans stressed the point that Goodyear bonds have become junk bonds. Who could ever have imagined that, she asked? In a letter to the editor, Gibara said that Evans seemed to criticise him constantly and, more importantly, not give the readers the full facts, which forced him to answer back in the name of all the good Goodyear associates. The issue rumbles on - the supervisory board has given Gibara a bonus of US$ 1.25 million, which Evans believes is not a good decision. Furthermore, it has become obvious that a power struggle is going on within the group, between the two highest-ranking managers.
Continue ReadingDr. Paolo Masera Back In Italy
Dr. Paolo Masera (60), who was MD for Pirelli in the UK for a short time and MD for Pirelli in Germany twice; the second time for only a few months, went to Brazil early in 2001. He now is back in Italy again to take over another leading position in Milan.
Continue ReadingGlobal Marketing Director For Goodyear
Jeanne B. Sherman (44) has been appointed as director, Global Marketing Services for the Goodyear Tire & Rubber Co., reporting to Cathryn M. Fischer, vice president and chief marketing officer. Sherman has 20 years experience of marketing with several well-known brands, including Wilson golf balls, Cheetos snacks and Kraft foods.
Continue ReadingName Change To Be The New Marketing Craze?
A bizarre tyre story from Canada: four Canadians have legally changed their names from Dunlop to Dunlop-Tire in order to win a share of a $25,000 prize. The money was offered by Dunlop Tires and more than 100 people applied. Dunlop Tires carried out a survey, in which 42 per cent said that they thought that name-changing to brands will be a new marketing strategy. 37 per cent said they would change their name if paid sufficiently.
Continue Reading2001 Provisional Figures From Conti
Continental has released provisional figures for 2001. Sales increased by 11.1 per cent to 11.2 billion Euro (2000: 10.1 bn). The Automotive Services Division increased turnover by 31.8 per cent and the tyre divisions sales rose by 2.2 per cent. Good sales of passenger car tyres in Europe compensated for falling sales of commercial vehicle tyres and in the turnover of Continental Tire North America. A one-off restructuring cost of 468 million Euro adversely affected the 2001 figures and the end result is a deficit for the year of 258 million Euro, compared with a surplus for 2000 of 205 million Euro.
Continue ReadingShredded Firestones Put To Use
Firestone tyres recalled in the USA are being put to good use, with rubber crumb used as artificial turf. A Montreal-based company called FieldTurf is producing the artificial turf for the Lions new stadium at Ford Field, Dearborn. A spokesperson for FieldTurf said that it had been specified that the rubber crumb came exclusively from Firestone tyres, in line with Bill Fords stance on corporate environmental responsibility.
Continue ReadingFujikura Chips For Goodyear
Goodyear has named Japanese component specialist, Fujikura, as the preferred supplier of sensor chips for tyre pressure monitoring systems. The chips will be used in sensors developed by Goodyear and Siemens VDO.
Continue ReadingMichelin Is Leaving The Competition Behind.
In 2001, the Michelin corporation generated a world-wide turnover of 15.775 billion Euro (+2.5% compared to 2000) and an operating profit of 1.04 billion Euro (-10.5% compared to 2000), thus showing a net profit of 314 million Euro (-28.4% compared to 2000). Under difficult economic circumstances world-wide, Michelins two main competitors, Bridgestone and Goodyear, could not even get close to Michelins operating profit, which corresponds to 6.6% of turnover. Bridgestone is still suffering from the consequences of the Firestone tyre recall in the USA, in 2000, and Goodyear has shown a loss for 2001. During a press conference at the end of February in Paris, Michelins COO, Edouard Michelin, clarified the course of business events during the last year, and Michel Rollier, Chief Financial Officer, offered a detailed view on the corporations figures. For the very first time, the corporation answered questions during a big press conference (other conferences were held in London and New York), and mentioned turnover and profit figures for the individual divisions.
Continue Reading65-Pounder From Accuride
Accuride has launched a 65 pound (29.54Kg) lightweight steel truck wheel. The combination of high strength low alloy steel coupled with engineering design and process has given Accuride a light steel wheel with the strength of a standard steel item coupled with the light weight of an alloy wheel. The 17 pound (7.73Kg) saving over the standard steel wheel the Accuride Lightweight Steel item could increase truck payloads by 306 pounds (139Kg). The wheel is available in 22.5 x 8.5 for standard hub mounting and can be supplied powder coated, and has a maximum load rating of 7,400 pounds (3364Kg).
Continue ReadingEuropa Tyres Buys Moplant
Europa Tyres, the UK agricultural tyre wholesaler which is part of the BITS organisation, has acquired the share capital of Moplant Limited; the manufacturer of the Thornguard and Nailguard ranges of anti-puncture tyre liners. These liners reduce punctures in off-road vehicles by over 90%, according to customers.
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