Setback In Negotiations Between Carlyle And Continental
According to articles in German newspapers the negotiations between the US-Investment company and Continental for the purchase of ContiTech have hit a snag. It is said that Carlyle is not willing to pay the price that Continental expects. According to spokesmen from Continental the group is now negotiating with more than one potential partner.
Continue ReadingExtended Payments Agreement With Viborg Group
Medium-size dealers and companies are complaining that the biggest European tyre equity Viborg Group is forcing companies who are delivering to give them 90 to 120 days for payments. If suppliers refuse to do so, they will be immediately dropped from the suppliers list. Viborg is known as the company which is asking for the cheapest price from all competitors and, in addition, for an extra fee of 10%. The Michelin group is the number one supplier for Viborg in Germany probably followed by Pirelli whereas, the Continental-group and the Bridgestone-group do not sell too many tyres to the retail chain.
Continue ReadingFunds And Manpower Contributed By Goodyear
Goodyear announced that it will contribute in excess of 1M US Dollars (1,081,775 Euro) to be divided between the New York Times 9/11 Neediest Fund providing aid to rescue workers, civilians and their families and the American Red Cross. The fund will probably exceed this figure as contributions are added by Goodyear employees. The company has also dedicated personnel to ensure the constant supply of tyres to sites in Washington and New York, and has dispatched tyre engineers to assist New York Citys tyre maintenance staff to avoid equipment downtime.
Continue Reading15 Day Closures For Stomil Olsztyn
Michelin controlled Stomil Olsztyn is to curtail production for 15 days during November and December. The shutdown has been brought about by the reduction in sales of the Kormoran marque in Poland. The company will use the break in production to reduce stocks.
Continue ReadingGoodyear Lays Off Five Per Cent Of US Workers
The slowing economic market is the reason given for the news that Goodyear is to lay off 1,400 associates at five plants in the USA. The figure equates to around five per cent of the companys US work force and Goodyear would not say whether or not the layoffs were temporary or permanent. Production at the five factories is being cut from continuous operation to five or six-day working and the layoffs follow 8,000 job losses earlier this year, mostly outside the USA.
Continue ReadingConsumers Association Condemns Fast Fits
A report in the magazine Which? – published by the UK Consumers Association (CA) – has accused fast-fits of recommending unnecessary work in almost a quarter of cases. The CA took a test car to 93 depots, belonging to seven of the UKs largest fast-fit chains, and says that 23, split across all seven chains, recommended unnecessary work. In response, one of the companies involved – Kwik-Fit – says that it has not been given detailed information by the CA but, on behalf of all the companies involved, it takes exception to the implication that so many in the trade would intentionally mislead the customer.
Continue ReadingNew Car Fleet Service From Stapleton’s
In the UK, wholesaler Stapletons Tyre Services has announced that it is to invest two million Pounds in an internet-linked network of service outlets, called Tyreserve, aimed at the car fleet market. Stapletons retail division (50 outlets) will be the first member and Tyreserve will begin trading next April. The new move has the full backing of Itochu, Stapletons parent company.
Continue ReadingSignificant New Price Increases Expected In USA
In talks with dealers, MAST (Michelin America Small Tires) mentioned the possibility of new price increases, which could be up to 6 per cent, within the next few months. The Michelin brand is expected to attract most of the drivers who previously chose Firestone.
Continue ReadingDetroit Motor Show: Concerns About The Economic Situation In The USA
Almost all car manufacturers are offering new SUV models. While sales figures for December last year fell dramatically for the big three, the European, Japanese and Korean producers were very successful. Analysts are worried because they expect a price war in the till-now-profitable SUV segment, caused by growing over-capacity. Products from Chrysler especially, but also from GM to some extent, are under growing pressure. So far, the big three have cut back production in order to avoid a costly incentive programme. During press conferences in Detroit, high ranking managers were unable to dispel these concerns and thus analysts do not recommend GM and DaimlerChrysler shares as a buy; in fact, quite the contrary.
Continue ReadingIreland To Get Kwik-Fit Mobile Service
Kwik-Fit Fleet is to launch its mobile tyre fitting service in Ireland, servicing mainly business car users at their offices or homes. Kwik-Fit currently has 37 service points in Ireland, with plans to expand. When it comes to mobile service units, the group has 538 vehicles operating in Europe.
Continue ReadingCar Sales In Western Europe To Fall
Automotive consulting firm Autopolis has produced a report which predicts that the western European car market is going through a decline at the moment. 1999 was a record year, with 15.1 million vehicles being sold, but last year the market dropped by 2% and Autopolis says that the fall will continue this year and next, with sales dropping to 13.4 million cars – a decline of 11% in three years.
Continue ReadingChinese 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.
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