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 ReadingAsian Auto Sector – Outlook Not Too Bad
At a time when vehicle markets in the US and Europe are set to fall sharply, the outlook for most of Asia is not too bad, says a report from industry strategists Autopolis. It predicts a downturn in the region for this year and next, but, as 2000 saw record car sales (excluding Japan), the drop should be manageable. This year, only China and Malaysia are forecast to see sales of vehicles rise. The Japanese market is predicted to fall this year by 4.3 per cent and 2.4 next. For Asia outside Japan, the figures are minus 5.5 per cent (2001) and minus 3.3 per cent (2002). 2003 should see an upturn both inside and outside Japan, says Autopolis.
Continue ReadingWith Good Marketing You Can Be Successful
HMI (short for Trade Marketing Initiative) is a special relationship between the tyre trade and the industry, offered in Germany only by Goodyear. The marketing programme has been widened over the past year; for example the long-awaited Tyre Soft 2 software is now available at long last. At the annual meeting in Sonthofen, Mr. Zubanovic, managing director of Goodyear Handels Systeme GmbH, expressed little concern despite the problems the organisation is facing. He said that the tyre trade has to go for growth and seize every opportunity to expand – dealers who do not will prove to be uncompetitive in the long run. Goodyear MD Jarro Kaplan, who is president of Goodyear Eastern Europe, pointed out that teamwork with Goodyear is beneficial because it always guarantees the trade a good year.
Continue ReadingAward for BBS
Aluminium wheel producer BBS has been selected as an innovative medium-size company, by DG Bank, Frankfurt, and weekly newspaper Die Woche, for the second time. The award for the medium-size company went to BBS, ahead of 281 competitors, due to its innovative approach, especially in the field of painting wheels. Patron of this award initiative is Germanys Minister for Economic Affairs, Werner Müller.
Continue ReadingOE Success For Korean Tyres
Hankook is to deliver spare tyres, size 125/80-17, for the Volvo models S 60, S 80, C 70 (Cabriolet) and V 70. The order volume is approx. 200,000 units and the profit margin is described as satisfactory. Hankook is also entering the OE business in China. The manufacturer is to deliver tyre sizes 195/65-15 (H and V-rated) as well as 205/60-15 (V-rated) for the VW models Passat and Bora.
Continue ReadingEuropean Launch For Cooper Discoverer AST II
Cooper Tire is launching a new Cooper-branded tyre in Europe, aimed at the small van and light truck market. The Discoverer AST II replaces the p-metric sizes of the Discoverer Radial AST and is available in twelve, S-rated sizes for 15 and 16 inch rims. The new tyre will be made at Coopers Findlay, Ohio factory.
Continue ReadingWhat Plans For Pirelli Tyres?
During a press conference held in Milan, Pirelli boss Tronchetti Provera did not give much away and remained vague. The companys strategy will focus more on high technology and telecommunications in the future, but Tronchetti Provera stressed that he could not be more precise until he has made up his mind and seen all there is to see in Telecom Italiana. He said that he would focus on debt reductions as quickly as possible. Some parts of Pirelli are now for sale; a small part of the cables and the truck tyre division, for which Pirelli hopes to collect around 2 billion Euro. The passenger car and motorbike tyre division is not for sale. There are rumours that Pirelli is in talks with Michelin and Bridgestone. Of the two remaining major manufacturers, Continental may not have the money, as the group is already planning other take-overs, and Goodyear already has sufficient production capacity.
Continue ReadingManagement Moves At Ford
In a management reshuffle at Ford in the USA, Henry Wallace, Chief Financial Officer and Wayne Booker, Vice Chairman, are to retire. There is speculation that Martin Inglis, Head of Operations for Ford North America, is to succeed Wallace and that Nick Scheele, Chairman of Ford Europe, is to return to the States as a replacement for Inglis. Ford stressed that these latest moves have no connection with the current Firestone recall situation.
Continue ReadingFirestone Settles Law Suit In Texas
Firestone has settled a court case pending in Texas, paying the person injured due to an Explorer Rollover 7.5 million US-Dollars. Earlier last month Ford and a Ford Dealer already agreed to pay 6.5 million US-$ according to articles in major US newspapers.
Continue ReadingEurope Tries To Have Brazilian Retread Ban Removed
The European Commission, and BIPAVER are in negotiation with Brazilian and Argentinean authorities to try and raise the prohibition of the ban on retread imports which the EC considers protectionist and a restriction on Free trade. The EC is preparing to take the case to the World Trade Organisation, which will allow compensation claims to be made and possible commercial retaliatory barriers to be imposed.
Continue ReadingOn The Way To Chassis Control
Conti Temic is present at IAA for the first time, along with Continental ISAD, ADC, ContiTeves and Continental Passenger Car Tyres. In addition to the latest in technology, the company is introducing several projects on the way to the intelligent chassis, for example, the much acclaimed 30-Metre Car. Synergies between tyres and brakes are not the only aspect of Continentals vision of the future. The steering, axle modules and air suspension systems will all be integrated into the system.
Continue ReadingSlight Rise In Turnover For Goodyear In Third Quarter
Goodyear Tire & Rubber has announced worldwide sales in the 3rd quarter of $3.7 bn (Q3 2000 = $3.6 bn). Net income for the same period was $9.3 million, compared to $17 m for Q3 last year. For the first nine months of the year, the company posted a net loss of $29.6 m, compared to net income of $142.3 m for the equivalent period in 2000. Sam Gibara spoke of a general economic slowdown and tough market conditions in many regions. However, one plus point for the company was a market share gain of 3 per cent in the US replacement tyre market.
Continue ReadingLower Profits Warning From Nokian
Nokian Tyres has warned that its profits for its tyre chain in the fourth quarter, and for the year as a whole, will be lower than expected, although group sales and profits developed as expected during the autumn. The reason cited for lower sales was the mild winter so far in Nordic countries, which depressed sales of winter tyres.
Continue ReadingFormula 1: The winner will not only be a tyre, but Michelin
It was December 1999, when Michelin announced its comeback to the Formula 1. In the 80s the French company held a leading position and withdrew after having proved to itself and the world that it could build unbeatable racing tyres. When the 2001 Grand-Prix season starts in Melbourne on March, 4th it will also be the start for an additional tyre supplier called Michelin. BMW/Williams, Mild Seven, Benetton, Renault Sport, Jaguar Racing and Prost Grand Prix have already chosen Michelin, and Toyota will join the club next year. So far, the Japanese Bridgestone seems to have an advantage. As suppliers to Ferrari and McLaren Mercedes they are already covering the favourites with four winning cars, whilst the other teams have to come from behind. There are various reasons for these racing teams to have chosen Michelin. Renault and Michelin simply belong together. And that Toyota, the motor-car company is fighting for points all over the world on Michelin tyres isn’t a minor consideration. At the press conference Edouard Michelin appeared as a truly enthusiastic company leader with a sense of sport. Michelin is not some newcomer to the scene who does not know what’s going on. The team around Edouard Michelin know this and that is why they are competing. They want to prove to themselves and the world, that there is only one company able to build the best tyres in the world: Michelin! Hence, Edouard Michelin enthusiastically let himself get carried away to imagine that in the future people will say that Formula 1 will be won on Michelin. The winner runs on Michelin, all others are on tyres.
Continue ReadingNo Recommendation For Goodyear Shares
UBS Warburg have placed Goodyear shares on Hold and is of the opinion that under current conditions a price of 15 dollars would be justifiable, per share. This figure is much lower than the current 25 dollar price. Goodyear shares in the past 12 months have fluctuated between 29.50 and 15.60 dollars.
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