Goodyear Sells Chemical Business
Goodyear has sold its speciality chemical business to Littlejohn & Company, a Connecticut-based private company, for an undisclosed sum. The chemical business is based in France and had sales of over $120 million in 2000; its sale is part of Goodyears strategy to dispose of non-core assets and reduce debt.
Continue ReadingFirst Quarter Results From Amcast
Amcast, the automotive parts manufacturer (aluminium wheels), has reported results for its fiscal 2002 first quarter, which ended on December 2 last year. Sales were down 5 per cent compared with last year, at $131.2 million. The net loss for the quarter was $5.5 million. Sales at Speedline, the companys European operation, were up 9% on the previous year, benefiting from a strong vehicle market and favourable exchange rates.
Continue ReadingUS Consortium Plans To Buy Kumho Tire
The Kumho Group, by the 11th January, will be in receipt of a letter of intent to take over the tyre division. The bid comes from a duo of US-based consortia seeking to gain position as priority negotiators in the sale of the tyre division. One consortium is led by Carlyle, the other by Goldman Sachs. Kumho aims to sell around 80 per cent of its interest in Kumho Tire for about $1.5 billion (1.67 billion Euro).
Continue ReadingAlcoa Signs Agreement to Acquire Dooray Air Metal’s Extrusion Business
Alcoa Inc. and Dooray Air Metal Co. Ltd. have announced that they have signed a definitive asset purchase agreement for Alcoa to acquire Doorays aluminium extrusion assets, located in Changwon, Korea. The two companies signed a memorandum of understanding in spring 2001 for Alcoa to acquire the Dooray assets. The Changwon facility produces hard alloy extrusions, rod and bar, extruded shape and tubing for use primarily in industrial, transportation, defence and aerospace applications. The aluminium car wheel business, in which Dooray is the market leader in Korea and Alcoa is one of the biggest oe suppliers in North America, is not affected.
Continue ReadingManagement Buy-Out At National Tyre Service And Viking
A double management buy-out of former Conti-owned tyre retailer National Tyre Service and wholesaler Viking International was announced today. The buy-outs, which were for an undisclosed sum, were led by Chairman and Chief Executive Alan Revie. The two companies will continue to trade as separate businesses, under the umbrella of a new holding company, Axle Group Holdings Limited. In addition to National and Viking, the group includes a property company.
Continue ReadingOE Contracts For Kumho
Kumho has announced that it will supply 200,000 tyres in 2002 for VWs new Polo. This follows another OE contract awarded last October, which saw the Korean manufacturer supply tyres for VW Beetles, produced at VWs factory in Mexico. Kumho says it will supply 250,000 tyres for the Beetle in 2002.
Continue ReadingExclusive Distribution of Alliance
German wholesaler Bohnenkamp (Osnabrück) has been the exclusive distributor for the Israeli agricultural tyre manufacturer Alliance in Germany, Austria, Poland, Hungary and Czech Republic since the beginning of July. With this step Bohnenkamp intends to underline its leading position in the distribution of imported tyres. The company has been chosen by Alliance due to its elaborate distribution network and flexible logistics. Alliance offers more than 500 different sizes in the agricultural, MPT-, EM- and industrial tyres sectors and presents – in the neighbourhood of Bohnenkamp – a completely renewed product range with many new profiles and dimensions.
Continue ReadingAnother Loss Warning From Ford
Ford has warned that it expects to lose $900 million in the fourth quarter; which will be the companys third consecutive quarterly loss. This figure is in addition to the estimated $700 million one-off charge that the company will make to facilitate restructuring. Fords shares fell by 3.8 per cent at the news, despite a general rise in the stock market.
Continue ReadingExclusive Race Deal With Goodyear/Dunlop In US
The Grand American Road Racing Association has chosen Goodyear and Dunlop as exclusive tyre suppliers from next year to 2004. Goodyear radials will be used exclusively in Grand Ams SportsRacing Prototype I and GTS classes, and Goodyear bias-ply tyres will be used in the American GT class. Dunlop will be the exclusive tyres for the SportsRacing Prototype II and GT classes.
Continue ReadingLight At The End Of The Tunnel For Firestone?
Bridgestone/Firestone Inc. has taken a major step forward in its efforts to draw a line under the tyre recall saga by hammering out a settlement to avoid lawsuits by US States. The company will pay $500,000 to each of the 50 states and to the District of Columbia, Puerto Rico and the US Virgin Islands. BF Inc. will also spend $5 million on a consumer education campaign and a further $10 million for the states legal costs. Up to another $10 million could be spent reimbursing those motorists who have not yet replaced their tyres. Total costs could reach $51.5 million (57.5 Million Euro).
Continue ReadingNew Member for SupplyOn
Siemens VDO Automotive is to join SupplyOn, the internet marketplace for the automotive supply industry. Among the other members are companies such as Bosch and Continental. SupplyOn represents a buying volume of around 35 billion Euro.
Continue ReadingNew V-Rated Winter Tyre From Vredestein Carries The Load
Vredestein has introduced the Wintrac V XL, a V-rated winter tyre that has the same load capacity as W, Y and Z-rated summer tyres. With few, if any, winter tyres available at these higher speed ratings, drivers have previously had to fit V-rated winter tyres with lower load-carrying capabilities. The Wintrac V XL will be available for this years winter tyre season.
Continue ReadingSecond ContiTech Fluid Joint Venture in China
ContiTechFluid, the business unit of tyre producers subsidiary ContiTech, has recently purchased 51 percent of shares of Chinese hose producer Grand Ocean (Chang Chun). From January 2002 the 100 employees will produce parts for VW models Jetta and Bora and the Audi A6. The project in the north of China requires an investment by ContiTech of up to five million euro.
Continue ReadingReorganisation In Store As Hayes Lemmerz Files For Chapter 11
Hayes Lemmerz, the wheel manufacturer that has been undergoing difficult times recently, has filed for restructuring under Chapter 11 of the US Bankruptcy Code. The company is at pains to point out that it has not gone bankrupt, neither is it going out of business and that Chapter 11 is a court-supervised restructuring proceeding, not a liquidation proceeding. It also applies only to Hayes Lemmerzs own operations in the USA and that operations outside the country (except for one plant in Mexico) and joint ventures are not included. Declining market conditions and excessive debt were blamed for the action. Hayes Lemmerz shares fell to 52 cents at the news.
Continue ReadingInvestor Update From Goodyear
Goodyear has published its monthly investor update, giving brief details of the companys performance in various world markets. In North America in October, industry shipments of OE and replacement tyres fell. Goodyear made production cutbacks, which continued during November. European industry-wide replacement tyre shipments fell for both passenger and commercial and Goodyears sales followed this trend. For OE, Goodyear shipments of consumer tyres were up on last year while those of commercial tyres fell. In Eastern Europe, Goodyears shipments of OE and replacement tyres fell from October 2000 levels. Replacement shipments in Latin America fell and OE shipments rose, while in Asia, OE and replacement shipments both rose.
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