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 Reading“Essen-Motor-Show 2001” – On Course For Growth
The Essen-Motor-Show is putting its foot down! After the record exhibition in 2000 (with 394,800 guests, 12.4 percent more visitors), it has been accelerating once again: the range on offer, which already covered many diverse aspects of automobiles and related products, became even wider in 2001. A total of more than 550 exhibitors, including the leading automobile manufacturers, presented what was on offer on the global market in 18 exhibition halls. Special emphasis was placed on the sporty and individual vehicle models as well as on the wide range of vehicle accessories. Current racing vehicles from all motor-sport categories, including a large number of this seasons Formula-1 cars, supplemented the range on show, where all the major players, almost without exception, were represented. Many exhibitors had booked larger booth areas. Other automobile manufacturers who had not exhibited their makes before had announced their participation in the Number 2 of all German vehicle fairs. Because of the greater demand for exhibition space, the exhibition management had therefore decided to provide an additional large hall for the Automobiles and Tuning exhibition sections. VDAT – Verband Deutscher Automobil-Tuner e.V. (the Association of German Automobile Tuners) had also intensified its involvement in the Essen-Motor-Show 2001. VDAT members presented themselves exclusively in the VDAT Halls 5, 10 and 11 which were designed with a salon character.
Continue ReadingHow Kraiburg Regards the Future Of Retreading
Even before the dramatic changes in the worldwide economy after September 11th, the retreading business, as well as its suppliers, was facing hard times. Reduced demand, increased competition and price pressure characterised the depressed market. It was not unusual for material suppliers to experience a decrease in their third quarter results of around 20 percent. Uncertainty, pessimism and negative forecasts represented the collective mood in wide areas of the business. But Kraiburg, the Geretsberg (Austria)-based retreading supplier, is swimming against the stream and reports stable economic results and new strategic activities to meet future market challenges. Kraiburgs turnover in 2001, up till end October, is just half a percent below the companys performance for the first ten months last year. In addition, an agreement for a joint venture with the Bulgarian company Zebra was finalised in October. Since 1997 the Sofia based company Zebra has produced thin and light tread patterns which would have been uneconomic to produce in Austria. Kraiburg has invested around one million Euro in Zebras tread pattern production and 95 percent of the joint venture shares belong to Kraiburg. Within the next two years the Bulgarian production will be increased from 800 to 1,800 tons per year – using the same machinery and equipment.
Continue ReadingAgritechnica 2001
Agritechnica is the largest agricultural exhibition in Europe and the 2001 event was held in Hanover from 13th to 17th November. This year’s show area has increased by 4% to a total of 196,000 square metres and more than 1,300 exhibitors from 30 countries showed their goods and services. The exhibition showcases the latest advances in technology for modern agriculture, including tractors, other agricultural machinery, accessories and spare parts. Included in these are tyre manufacturers who offer agricultural tyres, with such famous names as Continental, Goodyear, Michelin, TWS and Vredestein, among others. Agritechnica usually proves a great draw for those involved in agriculture; this year with 247,000 visitors 9.5% more came through the doors than two years ago, 34,000 of these coming from 100 countries outside Germany, and similar levels were expected this time around. The November date for the show is well-timed, as this is the time of year when many farmers are planning their investments for the coming season.
Continue ReadingAgricultural Tyre Market: 2001 has been a difficult year
The world-wide market for agricultural machines and tyres is has been characterised by a rationalisation processes over several years. The leading competitors in the tyre sector (Michelin-Group, Trelleborg Wheel Systems (TWS), Continental and Goodyear) have more or less completed repositioning themselves in the market. The widest multi-brand variation has been attained by the Michelin-Group, which covers with its four brands (Michelin, Kleber, Taurus and Stomil) all price-segments and applications. However, the development of this tyre segment cannot be viewed in isolation. It is influenced and defined by a number of fundamental and mutually connected parameters. These are:· the general economical development of the agricultural sector,· the changing structure of the German agricultural sector since reunification,· seasonal influences/aspects (e.g. weather conditions) and· sales, numbers and specifications of agricultural machines (especially tractors).In Germany fewer and fewer farming companies have concerns about a permanently increasing average area of land - a trend that can be observed throughout the rest of Europe. At the same time agricultural machinery is becoming more powerful, larger and faster, and the tyre manufacturer has to produce a product that can cope with these demands and yet remain gentle on crops to ensure maximum yield.In the first half of the year 2001 the already decreasing number of machinery sales found an additional seasonal reason in the sinking investments of the farmers, due to the BSE and the FMD-crisis. The increased cost-consciousness of the farmers became obvious in an trend towards cheaper brands. In the second half of the year the tyre market recovered a little bit from its bad results in the first six months but the overall negative figures could not be overcome completely so that ultimately a five percent loss was expected, compared to the previous year. This meant a total number of 220,000 tractor tyres sold in Germany (radial: 143,000 pieces).
Continue Reading3.8 Million New Car Registrations
The association VDA has calculated that 3.8 million new cars were registered 1999 in Germany; 2% more than in 1998. The association is expecting a decline in registrations for the year 2000 of between 2 and 5%.
Continue ReadingJames Fish becomes Goodyear’s Vice President Global Human Resources
Effective today, W. James Fish, formerly executive director of human resources customer operations at the Ford Motor Company, becomes Goodyears senior vice president, global human resources, reporting to Sam Gibara, chairman, chief executive officer and president
Continue ReadingEUROC for the Chop?
After the STW race series, the new European Roadster Challenge (EUROC) is also under threat. As it seems that the German Touring Car Championship (Deutsche Tourenwagen Meisterschaft) will be successfully revived this year, well-known drivers anticipated to take part in EUROC have begun to look elsewhere at the last minute. Who will be equipping the Touring Car Championship teams with tyres is also not yet clear, although an exclusive contract is talked of, with auto motor und sport magazine already naming Dunlop. On the other hand the involvement of the Michelin subsidiary BFGoodrich in the EUROC series seems to have come to nothing even before the first race, unless Bernie Ecclestone can be persuaded to allow these cars, in which immense sums have already been invested, to take part in the Formula One circus.
Continue ReadingFull-Service-Leasing Including Tyres
In co-operation with the Advance Bank ASL (Auto Service Leasing) has developed a leasing concept that includes tyre service too.
Continue ReadingWoosung change of name
At a special ceremony in Seoul, Korea, Woosung Tire Corporation has now announced that from 10th February they would be known as Nexen Tire Corporation. The companys new corporate identity will be made public in the near future.
Continue ReadingGo West – Continental For NYSE
In 1999 Continental’s turnover and EBIT only rose around 35 % while for the same year a 70% increase in net profits to 234.7 million Euros (1998: 138.2 million Euros) is reported. Therefore Conti boss Dr. Stephan Kessel is some kind of disappointed and astonished with regard to the performance of the company’s shares. May this be another reason why Continental has revealed that it would float its shares on the New York Stock Exchange some time within the next three to five years?
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