The Commercial Vehicles Business Remains Full Of Contradictions
The German automotive association (VDA), organiser of the 58th International Commercial Vehicles Exhibition, which took place in Frankfurt this year due to EXPO utilising facilities at Hanover, has announced record results for the event. 1,318 exhibitors from 42 countries filled the exhibition, including some 725 automotive parts suppliers, more than ever before. In all, 240,000 people attended the show, 85 % of them trade visitors. Bernd Gottschalk, president of the German automotive association stated, The IAA grows in importance as a sales exhibition. He believes that the whole climate at the exhibition was one of optimism and faith in the future of the business. This may be true, but it is only one side of the coin. Despite the pre-event high hopes there remained an apprehension that the recent economic boom might soon come to a sudden end. There are many indicators that the boom may be slowing down: Dramatic decline in sales in the USA, and an accelerating rationalisation amongst manufacturers making trade more intensive for both suppliers and the fleet business. This and high fuel prices and, last but by no means least, the distortion of competition as a result of differing transport regulations within the European Union. In the final analysis, the commercial vehicle business remains as full of contradictions today, as it ever has. Find out more in the November issue of NEUE REIFENZEITUNG.
Continue Reading540 Jobs At Goodyear Great Britain In Jeopardy
On Tuesday 17th October, Goodyear Great Britain submitted an HR1 notice to the Dept. of Trade & Industry. This document contained a number of options for improving productivity and lowering costs, one of which was for 540 jobs to be lost at the companys Wolverhampton plant. The notice effectively gives 90 days notice for management and unions to find agreement. If no agreement is forthcoming at the end of 90 days, a solution can be imposed by management. The total labour force at Goodyear Wolverhampton numbers more than 2,000. This news comes the day after Michelin announced the loss of 950 jobs at its factory in Stoke-on-Trent.
Continue ReadingMore managers are leaving Viborg-Group in Germany
The Viborg-Group, which bought first Stinnes Reifendienst and later Gummi Meyer and now has more than 400 depots in Germany, is facing more departures by Managers. The relatively young managers Scharwenka, Rudolph, Roth and Lemle do not see their future within the group any longer and are leaving. As far as business in general for the Viborg-group in Germany is concerned we hear very different opinions. Viborg is asking for the deepest price and in addition to that for an overhead of 10 %, giving them a real advantage over all competitors. Strategic partners at the moment are Michelin, Pirelli and Dunlop. It is not clear whether all of them are paying the extra price of 10 %. Other tyre manufacturers can see how difficult it is for the Viborg Group to fulfil their promises despite the fact that all the warehouses are completely full. There will be a long article in a future issue of NEUE REIFENZEITUNG. Furthermore, Viborgs management is not willing to talk to the press and is urging employees not to talk to the press otherwise their jobs will be in jeopardy.
Continue ReadingTrouble For Minardi?
The 50m $ sale of 68 percent of the shares in Minardi F1 racing team owned by Gabriele Rumi (Fondmetal alloy wheel producer) seems likely to fail. Minardi – planning to start next season with Michelin tyres – could not find a motor supplier for 2001, so that potential purchaser Panamerican Sports Network (PSN) might withdraw.
Continue ReadingGeneral Tire Recalls Truck Tyres In The USA
In the USA, General Tire has begun a recall of 4,750 truck tyres, produced between December 1998 and February 1999. A Continental Group spokesman pointed out that the company is not acting under any legal obligation, and the move is a precautionary one.
Continue ReadingGibara Explains Goodyear’s 2000 Strategy
At a dealer conference in Las Vegas, Goodyear Chief Gibara explained to an audience of 4,500 tyre people the need for consolidation in 2000, following the recent aggressive expansion strategy. Gibara pointed out the importance of the personal touch despite the fast growth of e-commerce and the Internet. The fill-rate problem will be improved through shipments from Latin America, Eastern Europe and Turkey for the US replacement market.
Continue ReadingPorsche Award For Bridgestone
Bridgestone has won Porsches Supplier award for 1999. The tyre company was also assessed by Porsche as Top Best for product quality and delivery; the only tyre manufacturer to achieve this ranking. The award was presented to Michael Conrad, OE sales manager for Bridgestone/Firestone Deutschland, and Stephen Rambow, engineering account manager in charge of Porsche affairs, at a ceremony attended by senior representatives of Europes auto industry.
Continue ReadingSpeedline Truck
The division Speedline Truck supplies the major truck manufacturers in Europe and North America. In future the range will include flow-formed wheels - for trucks Speedline uses this technology exclusively, which has the effects of reduced weight and improved mechanical properties.
Continue ReadingMichelin Factory For India
Following a recent feasibility study, Michelin has announced that Bangalore is the most likely site for a new manufacturing plant, as various producers have factories in this region. Other cities being considered are Pune and Baroda.
Continue ReadingFulda Lay Down A Golden Challenge
Twenty sporty and adventurous minded people from ten European countries, who own driving licences, will have the chance to enter as two-man teams in the Fulda Challenge in Canada, to be held in February 2001. The ultimate prize for the winning team is a $10,000 gold nugget.
Continue ReadingMichelin Net Profits Slip
Michelin has announced a fall in net profits, from 535.5 million Euros to 154.4 million Euros for 1999. This is even lower than latest predictions of financial analysts. The figures were affected by the inclusion of a special provision of 370 million Euros, made to cover the entire cost of Michelins three-year restructuring plan. However, operating profit for the year rose to 1.23 billion Euros; an increase of almost 15%.
Continue ReadingMixed Fortunes For BMW In UK
Perhaps as a backlash following the BMW/Rover situation, and aided by lower prices for Mercedes and Audi, UK sales of BMW cars fell 20% in April. Sales of Rover cars rose 500% as Rover and its dealers acted to clear stocks because of the uncertain situation.
Continue ReadingBridgestone Announces US Price Hike
Bridgestone is to join Goodyear, Continental, Michelin, Cooper, Pirelli, Yokohama and others in raising tyre prices in the USA to compensate for raw material price increases. Effective June 1st, Bridgestone tyre prices will rise 4%. Historically, Bridgestone has taken advantage of other manufacturers price increases in order to gain market share, so this latest announcement seems to indicate that this time the price rises will stick.
Continue ReadingSave Gas With Goodyear
Goodyears Chief Engineer of Product Design has warned of the economic cost of tyre under-inflation as gasoline prices reach a new high in the USA. Petrol consumption and tread life are adversely affected. A Goodyear survey showed up to 28p.c. of vehicles had seriously under-inflated tyres.
Continue ReadingEuropean Down-trend Halted: Michelin With New Product Lines And New Strategies
Since the early 90s, French tyre maker Michelin has continuously lost market share year on year in the passenger car and light truck sectors. The company used to have a 25% market share Europe-wide and this had fallen to 17% last year. According to Michelin, prices were too high vis-a-vis those of major competitors and were no longer competitive, as the end user is prepared to pay only around 10-15% more for a premium product. The necessary price cuts can only be achieved if the company is able to increase productivity. Market experts are convinced that the productivity of Bridgestone/Firestone exceeds that of Michelin by 40%. Michelin is currently undergoing a restructuring programme which will lead to the job losses – or at least early retirement – of around 10% of the European workforce over the next three or four years. Jean Michel Coulon (52), head of the passenger and light truck tyre division in Europe expressed confidence in talks with this magazine that the erosion of market share has now been halted once and for all. Coulon made it clear that he is not aiming to gain market share – his goal is to stop the erosion of market share, to implement an effective multi-brand strategy, to improve the product mix and, finally, to avoid a price war.
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