ContiTech To Increase Stake in Kühner
After procuring 51 percent of Kühner (Oppenheim) in order to strengthen its market position, ContiTech now intends to acquire a further 35 percent of the company, which produces hoses for air conditioning equipment. The deal is planned to become effective 1st May.
Continue ReadingNew Head Of BMW GB
Jim ODonnell (50) has been appointed Managing Director of BMW (GB), effective June 1. He succeeds Kevin Gaskell, who left the company in February. ODonnells former roles include Sales & Marketing Director for BMW South Africa and, most recently, Sales Director of BMW (GB).
Continue ReadingProfit Warning from Goodyear
After Goodyear gave a profit warning for the second quarter its share prices fell yesterday by 10% to US$22.5; in June 1999 the price was US$58.7. The increase in raw material costs (rubber, oil, carbon black), the failure of securing better prices and extremely competitive prices in the UK and Germany, as well as the weak Euro against the dollar are the main reasons. US economy magazines yesterday wrote about the necessity for Goodyear to make immediate drastic moves over there (meaning Europe).
Continue ReadingBrand Extension For Michelin
The Michelin brand is strong in tyres, maps, tourist, hotel and restaurant guides. The Michelin brand name is an asset in itself, so together with The Licensing Company (TALC, London) the tyre maker will target other consumer goods markets through a licensing programme using the brand name and also Bibendum, the Michelin Man.
Continue ReadingStock Exchanges Are Losing Trust In Tyre Industry
After profit warnings from Goodyear, and from Michelin, the tyre industry is losing credit and trust at stock exchanges all over the world. Continental has now also been downgraded from buy to Market perform.
Continue ReadingReifen 2000 Review
The biennial Reifen show in Essen has grown and grown to become what is regarded as the most successful and most impressive show in Europe devoted to tyres and ancillary products. This year’s event was the 21st show and boasted 408 exhibitors – a 13% increase over 1998. 40 countries were represented at Reifen 2000. However, visitor numbers dropped 3.75% to 15,400, but this was regarded as not significant and due to a number of one-off factors rather than a sign that Reifen has begun to lose its appeal. Our review of the show includes articles on no fewer than sixty companies who were exhibiting, from all over the world and the coverage reflects the importance of what many regard as Europe’s premier tyre exhibition, and one which is attracting an increasingly global exhibitor and visitor base.
Continue ReadingDisaster For Pirelli
The tenth race of the Pirelli Porsche Cup in Spa has been called off because, during practice, the tyres showed dramatic failures. The Pirelli tyres, it was said, peeled like onions. Following failures in Silverstone, Barcelona and Monaco, Porsche felt compelled to cancel the race in the interest of driver safety. Porsche is blaming Pirelli for inferior production process and the use of faulty compounds.
Continue Reading‘Misrepresentation’ In Article Claimed By Goodyear
Goodyear claims that an article in the Washington Post entitled Explorer has higher rate of tire accidents misrepresented the role of Goodyear tyres in accidents. The article examined data from the Florida Highway Patrol used to identify potential causes of accidents and the tire-related category consisted of blow-outs and punctures. Both of these could be caused by road hazards, argues Goodyear, which has nothing to do with the manufacture and quality of the tyre. The company also says that its own claims data show no correlation between tyre performance and accidents involving Explorers.
Continue ReadingClosure Of Bridgestone US Factory “Cannot Be Ruled Out”
Quoted in the Asian Wall Street Journal, Bridgestone President Yoichiro Kaizaki said that the companys factory in Decatur could be temporarily closed, should improvements need to be made. Mr. Kaizaki also said that permanent closure of the plant could not be ruled out.
Continue ReadingJapanese Car Output Rises
Toyota, Nissan, and other Japanese motor manufacturers are reporting strong growth in global production for the first half of the year. This comes amid massive restructuring of the industry as European and American manufacturers take shares in Japanese businesses. However, the growth figures are tempered by across the board decreased in production in September, suggesting signs of a slowdown in the market.
Continue Reading“Truck Force” At The Starting Line
Goodyear has got on well with their integrated truck service concept, as stated by the group. Whereas, by the end of last year, 65 partners have been using this Goodyear service for commercialising truck tyres, the figure has currently raised up to 90, which means another step closer to the target of an area-wide service network in Germany. As estimated by Frank Titz, Manager Sales & Marketing Truck Tires at Goodyear Germany, around 150 service points will be necessary, of which 120 are already covered by their 90 partners. Because of continuing merging activities within the forwarding business, foreign markets have to be considered, too. All big freight vehicle fleets are on the road all over Europe, so that service may not end at the frontiers, Titz is explaining the motivation for the European-wide extension of the concept, named Truck Force. By the end of 2001, we want to be represented at all main international traffic arteries, either from Portugal/Spain to Scandinavia and from France versus Eastern Europe. Advantages are not only suggested for trade, but for Goodyear itself, of course. In fact, according to Titz, in Germany more than 50 per cent of all new truck tyres have been sold so far by their partners.
Continue ReadingFurther Price Increases Necessary Soon
Recently announced price increases effective from the 1st November have not been sufficient to compensate for constantly increasing costs. The Continental Group therefore sees the necessity to increase prices again. The company expect to announce rises of around four to five percent early in the new year, Jescow von Puttkamer told NEUE REIFENZEITUNG.
Continue ReadingPirelli Sells “Terrestrial Optical Networking Systems”
Cisco has agreed to buy Pirellis Terrestrial Optical Networking Systems for US$ 2.15 bn and also plans to invest US$ 100 million to take a 10% stake in Pirellis Submarine Optical Transmissions. The Photronic Business accounts for a turnover of 395 million Euros.
Continue ReadingPirelli in Motorcycle Sports
Pirelli is to be the exclusive tyre supplier to the European Superstock Championship 2000.
Continue ReadingGoodyear Sued By Customer
In the USA, Goodyear is defending a product liability lawsuit brought against the company by former customer Heatway Systems. Heatway alleges that Goodyear supplied it with millions of dollars worth of defective hoses, used in heating systems for buildings, which caused up to $2 bn of damage. Heatway has already paid $6.5 m to settle 119 claims.
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