Goodyear Focused On Growth And Profitability
Goodyear Chairman, CEO and President Samir G. Gibara announced increasing growth and profitability at the companys annual shareholder meeting for 2000: Early indicators show encouraging signs that our strategy is working he said. Much of the growth will come from the more profitable replacement tyre market than from sales to auto makers.
Continue ReadingTragedy In Vredestein’s Home Town
Vredesteins home town, Enschede, was devastated by the recent explosion in a fireworks factory and subsequent fire. One Vredestein employee, his wife and one child are missing, another employee lost two children and his in-laws. 14 employees lost their houses and another 29 were damaged. Throughout the fire, the Vredestein voluntary fire brigade was active and helped the official firefighters. Obviously tyre production was affected, but was soon back to normal.
Continue ReadingMay results of German tyre retailers by BRV
The monthly census of the German tyre dealers association BRV showed the following results for May 2000: Compared to May 1999 the turnover of German tyre retailers decreased 0.9%. In the passenger car tyre segment the decrease was 5.4% and retreading business had to face a decrease of 9.6%. Only the light truck and truck tyre segment showed an increase (+ 2.7%).
Continue ReadingPrice Adjustment For Precipitated Silicas And Silicates
Degussa-Hüls AG of Frankfurt/Main (Germany) is to increase prices by 5% for precipitated Silicas and Silicates effective from June 15. The company argues that energy cost increases could no longer be offset by other measures. Silica is an important component for the reduction of rolling resistance in green tyres, as are rubber silanes and rubber blacks.
Continue ReadingPolicy Of Appeasement From Michelin?
In a telephone conference on 28th July, following an earlier profits warning and subsequent fall in Michelin shares of around 10%, the management tried to explain the reasons for the profits warning. June was a bad month but there is still hope that the company will achieve an EBIT comparable to that of the first half of 1999. Exact figures will not be available until September. The problems are in the USA, where it was not possible to obtain better prices for truck tyres. On the other hand, the increase in raw materials prices (rubber, oil, carbon black), forecast to be about 3%, will now, it seems, be more like 4 or 5%.
Continue ReadingMIRS Introduced By Pirelli
Pirelli recently invited journalists and analysts to its factory at Bicocca, Milan in order to see first hand the company’s new manufacturing process MIRS (Modular Integrated Robotized System). MIRS reduces the steps in tyre manufacturing from 14 to 3 and a tyre can be produced every three minutes. Tyres are built round a special drum, with the instructions given to the robots (the process is totally automated) through a barcode. The tyres are said to be more uniform and consistent. As well as its speed and flexibility, MIRS has the advantage of compactness and a line capable of producing 125,000 tyres a year can be sited in an area of a mere 350 square metres. Pirelli Chief Executive Marco Tronchetti Provera said that Pirelli will invest 50 million Euro over the next three years in 80 MIRS lines, increasing output by ten million tyres a year. Two of these lines will be located at Pirelli’s Burton-on-Trent factory in the UK, concentrating on SUV and 4x4 tyres. Burton stopped making tyres in 1994 and the news is a welcome change for the UK tyre manufacturing industry. It is a large factory, and there is ample scope for more MIRS lines to be added in the future, should this be Pirelli’s strategy. The figures associated with MIRS are truly impressive; investment costs are lower than for traditional factories and the minimum economic batch size has been reduced from 3,200 units to 375. The time taken to change sizes comes down from 375 minutes to 20. Workforce productivity is increased by 80% and MIRS uses less energy than a ‘normal’ plant. The manpower needed is significantly reduced too – it is estimated that 850 staff will be needed to produce the proposed ten million tyres. There is one other figure which, in these days of competition and falling prices, is even more interesting – a MIRS tyre is 25% cheaper to produce than a conventional tyre.
Continue ReadingGottfried Hess Becomes Goodyear Finance Boss In Germany
Gottfried (Geoff) Hess (58), up till now President of Goodyear Indonesia, is returning to Germany as head of finance for Goodyear and Dunlop in Germany.
Continue ReadingRecall Does Not Prove Firestone Liable Says Ono
Chief Executive of Bridgestone/Firestone Inc, Masatoshi Ono, has told lawyers that the tyre recall in the USA had been carried out for safety reasons and was not an admission that the tyres in question were defective in any way. Neither was his public apology in September an admission that B/F Inc was admitting any liability.
Continue ReadingHalf Year Results For Michelin Confirm Disappointment
Michelin has released its financial results for the first half of the year, confirming the disappointing message given earlier. Turnover was 7,377 m Euro (first half of 1999: 6,488) and operating profit 540 m Euro (596). Increased raw material costs and a weak Euro were blamed as contributing factors, but Michelin says that the results do not fully reflect progress made in increasing competitiveness.
Continue ReadingNo Production Problems at Firestone
Investigations at Bridgestone/Firestone plants in the US have revealed no major production process problems, according to Yochiro Kaizaki, company president. He also admitted that there may not have been up to standard and that, the probability of low safety tyres may be higher. Speaking of the alleged tyre related accidents, Mr. Kaizaki added that, even with experts involved, it is hard to determine whether it is design, production, driving or car related. If we are asked if the tyres are defective, we can say that legally there are no defects. In spite of this statement there are signs that Bridgestone/Firestone are preparing to make out of court settlements with alleged victims.
Continue ReadingUltra-Low Aspect Drive Axle Tyres From Bridgestone/Firestone
Bridgestone/Firestone Europe (BFE) has revealed details of a new, ultra-low aspect tyre for trucks and city buses. Called GMD (Greatec Mega Drive) the tyre replaces a pair of dual-mounted drive axle tyres with a single unit. Advantages claimed by BFE include lighter weight, lower rolling resistance and increased carrying capacity. Sizes are 435/45 R22.5 (for city buses) and 495/45 R22.5 (for trucks). Bus tyres will be commercially available early next year and the larger GMD truck tyres in 2002.
Continue ReadingIncreasing Pressure On Goodyear To Recall “Load Range E”
Goodyear announced that the firm had received notice from the National Highways Transportation Safety Administration (NHTSA) to a preliminary investigation into its Load Range E light commercial tyres. This follows on from a number of complaints and issues raised as a consequence of a New Jersey court case being defended by Goodyear. The lawyers for the plaintiff claim that Goodyear has been aware of a problem with the Load Range E and has been conducting a silent recall, both allegations being vehemently denied by the tyre company.
Continue ReadingChina Tire Holdings Seeks $3.5 bn Damages From Goodyear
China Tire Holdings, listed on the NY Stock Exchange since 1993, has brought a law suit against Goodyear in Ohio. Amongst other things the Chinese company accuses Goodyear of violating the RICO statutes and is seeking US$ 3.5 bn in actual and punitive damages from the American rubber giant.
Continue ReadingPneumant Up For An Oscar
East German tyre manufacturer Pneumant has been nominated by an international jury for the Milestones Award.The award is given to companies in recognition of their enterprising approach to innovative achievements.
Continue ReadingContiTech and Behr
The ContiTech group, part of Continental AG, will cooperate on certain projects with Behr GmbH of Stuttgart, which specialises in air conditioning equipment and in engine cooling. As part of the cooperation Continental will take from Behr a 51 p.c. holding in the Kühner company (making hoses, principally for original equipment in Oppenheim). The company will be integrated into ContiTech Fluid, giving Continental the industrial leadership.
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