Apollo To Build New Radial Plant
Indias second-largest tyre manufacturer, Apollo Tyres, is to invest 1.1 billion Rupees (24.7 m Euro) in a plant to make radial truck and bus tyres. The plant will be sited at Baroda, in Gujarat, next to an existing Apollo factory and will use technology from Continental, with whom Apollo has an existing collaboration. Apollo claims a 25 per cent share of the truck and bus tyre market but poor infrastructure and a large number of two-axle vehicles mean that radialisation in this sector is a very low 2 per cent.
Continue ReadingCourt Overturns Class Action Ruling Against Ford And Firestone
An appeals court in the USA has overturned the decision of a lower court granting class-action status to non-injury lawsuits against Ford and Bridgestone/Firestone over faulty tyres. The court decided that a class action (with all cases decided on the result of a single trial) would be unmanageable because of the large number of claims and the wide geographic spread. Claims affected by the ruling are for financial compensation only and not those alleging personal injury or death. Ford and Bridgestone/Firestone welcomed the decision.
Continue ReadingAuto Industry To Recover After Next Year – Report
Auto industry consultants Autopolis have released their latest report on the global automobile industry. It predicts a decline this year, with vehicle sales falling in the three largest markets (North America, Europe and Japan). A global 5 per cent decline (2.6 million vehicles) is predicted this year and a further 2.5 per cent decline the year after. However, Autopolis predicts that the global car and truck market will return to year 2000 record levels (54.9 million vehicles) by 2005 and, by 2010, demand will exceed 61 million vehicles.
Continue ReadingSavvy Goodyear Buy More Sava
Goodyear has strengthened its hold on Sava by increasing its stake in the Slovenian tyre manufacturer to 80 per cent, with a right to purchase the remaining 20 per cent between 2004 and 2005. Goodyear has invested over 90 million dollars in modernising Sava Tires. Sava employs some 1,400 staff, manufactured over six million tyres in 2001 and posted sales in excess of 230 million dollars.
Continue ReadingGood Year For GreenMan
US recycling giant, GreenMan Technologies has reported its sixth profitable quarter in a row. Net Sales for the second quarter ended 31 March 2002 totalled 5.561 million dollars, an increase of 21 per cent compared to the same quarter in 2001. The company processed the equivalent of 5.6 million passenger car tyres in the second quarter of 2002, an increase from 4.8 million in the same quarter of the previous year. Operating profits for the six months to the end of March 2002 have increased by over 100 per cent to 932,000 dollars.
Continue ReadingFirst Quarter Figures From Continental
Continentals profits after tax rose almost 62 per cent in the first quarter of the year to 68 million Euro (2001; 42 million). Corporation sales increased by 6.1 per cent to 2.734 billion Euro (previous year 2.578 bn). Ignoring changes from consolidation (mainly the inclusion of Conti Temic), sales fell slightly by 1.7 per cent. In the same period, EBITA (EBIT before goodwill amortization) rose 16.5 per cent to 148 million Euro (2001; 127 million). Cash flow was positive and the numbers of workers increased by 291 to 65,584.
Continue ReadingIncreased Investment For Yokohama
Yokohama has increased its share of the joint venture company Hangzhou Yokohama Tire Co Ltd. From 45 to 80 per cent. The other two shareholders, YHI Holdings Pte. Ltd and Hangzhou Rubber (Group) Co. each have 10 per cent of the holdings. At the AGM in March seven out of nine directors were already appointed from Yokohama. Production of Yokohama radial car tyres in China will begin in May 2003 with the construction of a tyre plant with a capacity of 750,000 units per annum. This will be increased in time to 1.5 million units.
Continue ReadingPrecure Treads From Cooper-Avon
Cooper-Avon has launched a range of precure treads as an addition to its remould materials range. The treads were designed in collaboration with Oliver Rubber, which is part of the Commercial Division of Cooper Tire & Rubber, and they will be manufactured by Rekor Rubber, of Turkey. Initially, eleven profiles will be launched, in a total of 59 pattern sizes.
Continue ReadingCollege lab Named In Goodyear’s Honour
Spelman College, in Atlanta, recently opened the Goodyear Tire & Rubber Company Synthetic Chemistry Research Lab. The lab was named for Goodyear as recognition of the companys belief in the importance of a diverse workforce and for investing in the potential of African American women scientists. Spelman College is recognised as a premier private, liberal arts, historically Black college for women.
Continue ReadingChina To Introduce Certification System
Tyres are among 132 different products which will have to carry the China Compulsory Certification (CCC) mark from next month if they are to be sold in the Peoples Republic of China. This applies to domestically-produced and imported products. The CCC mark is a product safety and quality certification system and the mark can be acquired from the Certification and Accreditation Administration of the PRC.
Continue ReadingSlow Growth At Michelin in Q1
Michelin Group income increased by 4.1 per cent to 3.8 billion Euro, ahead of analysts estimates. This was assisted by volume, pricing and currency in Michelins favour. Sales for 2002 have started on a positive note with volumes up on the same quarter in 2001. However, the key brands have fallen and the truck tyre market is dropping faster than expected. Price increases have so far held and Michelin believe they are on target for a 6.7-7.4 per cent margin in 2002, but this is dependent upon the price increases holding. The sales mix in the North American market is said to be precarious and under attack from the growth of private brands in the USA, and flag brands are still suffering as a result of the Firestone recall.
Continue ReadingImproved Results For Nokian
Nokian Tyres have released first quarter results. Turnover was up 10.3 per cent at 84.5 million Euro (Q1 2001: 76.6 m). The operating result was -1.0 m Euro (-1.9 m) and the result before tax was -4.0 m (-5.0 m). The net result was -3.3 m (-3.7 m). Sales and profits of passenger car tyres rose, while sales of heavy tyres decreased, as did sales of retreading materials. Sales of the chain Vianor were up, but the loss was greater than Q1 2001. Nokians aim for 2002 is to achieve better turnover and profit than last year.
Continue ReadingBigger-Than-Expected Loss For Goodyear
Goodyear has reported a first quarter loss of $63.2 million; larger than many analysts expected. The biggest regional operating loss was $51.3 m, incurred by the North American Tyre operation. Europe was profitable with operating profits of $16.6 m (Q1 2001 $31.4m), as was Asia. Sam Gibara declared himself disappointed by the figures, but he expected the company to make progress in the second quarter. The loss was blamed on production cuts, currency levels and the return of stock worth $10 m when the Penske Automotive Center chain closed. Despite the figures, Goodyears shares rose 3.6 per cent on expectations of profitability in the second quarter.
Continue ReadingFirestone Denies Settlement Offer
In the US, Firestone has denied reports that it is preparing to settle lawsuits with consumers who claim they were sold faulty tyres. A figure between $200 million and $300 million was mentioned. Firestone says there is no common defect in the tyres and the company is prepared to contest the cases, which are separate from those claiming personal injuries as a result of an accident.
Continue ReadingDrop In Sales For Bandag
Bandag Inc. has reported a drop in sales for the quarter ended March 31, 2002. Consolidated net sales for first quarter 2002 were $192.5 million, a decline of approximately six percent compared to net sales of $205.1 million in the same quarter of 2001.
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