Increase In Turnover For Pirelli
Turnover for Pirelli SpA in the first half of the year rose by 9.7 per cent to 3.946 billion Euro (3.598 bn Euro for first half 2000). Profits rose too; operating profit before interest and taxes was up 14 per cent to 243 million Euro (2000 1H: 213 m).
Continue ReadingFor Every Season: Goodyear’s “Vector 5″/”Eagle Vector (EV-2)”
Goodyear unveiled its newest generation of all- weather tyres, the Vector 5 and the Eagle Vector (EV-2) in Luxembourg at the end of August. The new tyres deliver superior safety on dry and wet roads all-year round as well as in snowy or icy conditions. The highlight of the new SmartTRED technology featured in these innovative products is that different areas of the tyres profile, each with distinct properties, come into play, depending on the conditions of the road. The Vector 5 and Eagle Vector (EV-2) will appeal particularly to drivers who usually drive in urban areas or on the flat and who want optimum safety even in adverse weather conditions. They need a tyre that is an excellent all-round performer in the moderate and temperate driving conditions they encounter for 90% of the time they use their car. However they want added safety and peace of mind in heavy rain and when temperatures drop towards freezing or even on snow and ice. Another interesting feature of the new tyres for the cost-conscious driver is that the mileage of these latest all-weather tyres has increased by around 15 percent over previous models. The central profile blocks of the Vector contain a substantial number of 3D-BIS blades – fine incisions in the rubber, whose edges bite into the surface of the road in so-called low friction conditions. This creates a significant increase in traction and grip on wet roads as well as on snow and ice. The new Vector 5 is immediately available in 21 versions ranging from 155/70R13 to 195/50R15 with a T speed rating (up to 190 km/h). The high performance version Eagle Vector EV-2 will be available in 13 sizes ranging from 185/65R14 H (210 km/h) to 205/55R16 V (240 km/h).
Continue ReadingMore Difficulties For Ford In The US
First came the second tyre recall with costs up to 3 bn $-US, secondly the extended guarantee due to problems with ignition systems, and thirdly many quality-related recalls of new car models, all of which have cost Ford a lot of its expected profit. Therefore the management has announced early retirement for up to 5000 white collar workers in the US. This is seen as the first step in a major restructuring in North America, where Ford has announced about 13 p.c. fewer new registrations compared with the same time last year, whereas the market in general shows only about 5p.c. fewer registrations of new cars. Analysts from Wall Street have already greeted Fords latest decision positively.
Continue ReadingBig Orders For TRW
Automotive supplier TRW has received orders worth 900 million US-Dollars from Renault (for the Megane) and Fiat (for the Stilo), concerning the production of Electrically Assisted Steering systems (EAS) for this year and beyond. These new contracts bring TRWs volume for EAS-systems in 2001 up to 500 million US-Dollars. The steering-systems for Fiat will be developed in Birmingham and produced in Livorno (Italy). The steering system for Renault will be developed and manufactured in Pamplona (Spain).
Continue ReadingContinental’s Results Have Slowed Down And Redundancies Are Possible
Compared to last year, Continental Group’s turnover for the first nine months of 2001 has increased from 7,438 billion Euro to 8,240 billion Euro (a rise of about 10.8%). The Group’s operational result (EBIT) of 238 million Euro (385 million Euro in 2000) has especially been affected by the North American tyre business and a non-recurrent expenditure of 58 million Euro due to the reconstruction process, begun in the second quarter and which has resulted in the closure of the truck tyre production site in Herstal (Belgium) and the remoulding site in Bad Nauheim. The Group’s result before tax has fallen by 160 million Euro down to 96 million Euro. After tax of 44 million Euro, the result is 104 million Euro more than last year’s amount, and the earnings per share are 0.35 Euro (1.16 Euro in 2000). Presenting the quarterly results at a press conference, Manfred Wennemer, who was appointed Managing Director on 11th September 2001, explained the Group’s directional change, concentrating on profits, results and cash flow and on cutting down financial debts, which also involves focusing on profitable transactions and devolving profit-and-loss responsibility on to the Business Units. Additionally, Wennemer announced some bigger restructuring measures: All parts of the company are under scrutiny, and there are no holy cows, he emphasised, adding the comment that factory closures and redundancies could be a possibility.
Continue ReadingThird Quarter Results For Cooper
Cooper Tire & Rubber has reported financial figures for the third quarter. Turnover was down 6 per cent compared with 3Q last year ($791 million against $844 million). Operating profit was $46 million (3Q 2000 – $60 m) and net income $14.4 m ($23.4 m). For the first nine months of this year, Coopers sales totalled $2.4 billion and net income was $36 million. These figures were down 7 per cent and 62 per cent respectively on figures for the same period last year. Cooper has embarked on a restructuring programme designed to save up to $30 million annually and $4 million was saved during the third quarter.
Continue ReadingCar Servicing As An Opportunity For Tyre Retailers
The disastrous sales of winter tyres in Germany at the end of last year have shown at least one thing: hope has no place in the calculations of business administration, and whoever has not yet understood that will have no future in this business. All the hand wringing of the tyre retailers does not help in this situation. Considering declining gross yields and the many new distribution channels for tyres, tyre retailers are forced to diversify and widen their service offers in order to compensate for loss of profit. One example of how this can be achieved is car servicing, which brings in gross yields between 40 and 50 per cent on average. A lot of business members have long ago realised this fact and extended their range of service offers. So car servicing is no longer a question of if but of how. The differences between the service offers and the quality of tyre retailers engaged in car servicing are huge. They range from the traditional Fast-Fit-Sector, covering the classical elements (exhausts, brakes and shock absorbers) to the fully equipped and professional working car repair station, offering every kind of car servicing. In this issue of NEUE REIFENZEITUNG the present level of involvement of German tyre retailers in the car servicing business will be explained and described, including some examples.
Continue ReadingMultiple Causes Of Accidents Cited By Bridgestone/Firestone
Bridgestone/Firestone has issued the results of its four month investigation into the accidents in the USA involving certain Firestone tyres. A number of causes were identified, including unspecified manufacturing problems at Decatur, tyre design in the shoulder area, driver abuse (travelling too fast and at the wrong pressure) and the weight of the Ford Explorer vehicle, particularly an alleged uneven weight distribution on the back axle. Ford denies that the margin for error between the load capacity of the tyres and the weight of a fully-laden Explorer is too slim.
Continue ReadingAgricultural Tyres From Uniroyal
Uniroyal is well-known for passenger and truck tyres. Now the brand, part of the Continental group, is trading under the name Uniroyal Agro in the agricultural tyre segment also. The exclusive distributor in Germany is Meyer Lissendorf, and negotiations are on-going regarding distribution in other European countries.
Continue ReadingLondon Property Company For Pirelli
Pirelli is to expand its property activities by setting up a new property company in London. The company manages a current property portfolio worth 8 bn Euros and Pirelli chairman Marco Tronchetti Provera has said that the new company will be used to expand the companys property activities outside Italy. Recently, Pirelli moved its treasury and investor relations to London.
Continue ReadingSecond Plant For Ringtread System
There are a lot of patents, some first registered in the 60s, concerning retreading using a ring system. Most of the patents belong to Marangoni, the majority shareholder of Ellerbrock. But the new tyre manufacturers were also thinking about the idea of a ring. There were also developments by Goodyear very similar to the Marangoni system, so that it came to a legal settlement. But this was long ago and ancient history – now Goodyear offers its own ring called Uni-Circle. Until now only one plant has existed in Europe where these rings are produced: in the Marangoni factory in Frosinone (Italy) so you dont need to be a detective to understand that the Goodyear source of Uni-Circle is the Marangoni plant. Now Ellerbrock has also begun production of the tread in form of a ring, also called Ringtread system. Ellerbrock will be responsible for the markets of Germany, Austria, Switzerland and Denmark. Other countries may be added later, because Ellerbrock will produce the modern tread patterns popular in central Europe. Capacity of the new facility will be 300 rings per day. One benefit of the rings in comparison with traditional flat tread patterns for retreading is the higher flexibility in production: charges of twenty rings are no problems in the new plant. But there are also benefits for the retreaders: they can save material, time, and because the process is totally automated, mistakes in production caused by human error – which might lead to splice separations – are nearly impossible. And the ring looks exactly like a new tyre. The target of Ellerbrock with the Ringtread system is not to change from traditional truck tyre retreading but to find new customers.
Continue ReadingUncertainties Stop Michelin’s Plans For India
Reduced profits in the Indian tyre market and an uncertainty about acceptance of radial truck and bus tyres has forced Michelin to take stock of its plans for the continent. Plans for a $115m plant at Maharashta have been put on hold. In the meantime Michelin is testing the market with imported radials before making a final decision.
Continue ReadingNew Leader For Goodyear’s Global Marketing/Brand Management
The Goodyear Tire & Rubber Company has elected Cathryn M. Fischer, vice president and chief marketing officer. Fischer, 39, will be responsible for the worlds largest tiremakers global marketing and brand management efforts. She will report to Robert J. Keegan, president and chief operating officer.
Continue ReadingReshuffle at Goodyear
Goodyear has announced a reshuffle at its European businesses. Sylvain G. Valensi, the outgoing president of the European Union business unit, will be on special assignment, reporting directly to Robert Keegan, Goodyears president and COE. Valensi will be replaced by Michael J. Roney, who transfers from the Eastern Europe, Africa and Middle East Business Unit. Roney is in turn replaced by Jarro F. Kaplan, who previously held the post of managing director for Goodyear UK, and latterly of Goodyear Germany. Both Roney and Kaplan will report directly to Robert Keegan.
Continue ReadingJapanese Truck Tyre Recall For Michelin
In a precautionary move, Michelin is recalling 55,000 truck tyres manufactured in Italy and sold in Japan between October 1999 and March this year. There have been no accidents but a change in design to the steel cord used in the sidewall has reduced the tyres resistance to over-inflation that could lead to rupturing of the sidewall.
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