Love Still Growing After a Year, Reports Michelin
In May 2008 Love’s Travel Stops, a company ranked by Forbes Magazine as one of the top 25 largest privately held companies in the US, began a cooperative agreement with Michelin Americas Truck Tires. A year down the line Michelin has announced that Loves outlet in Memphis Tennessee has become the 25th truck tyre care service location it has opened since the agreement was signed.
Continue ReadingPirelli Launches R:01 “Eco-Friendly” Regional Truck Tyre
Pirelli has announced the launch of its new regional truck tyre, the R:01. Developed by the company’s research centres, the tyre represents Pirelli’s attempt to meet the requirements of professional operators in terms of mileage yield, reduced consumption, retreading potential and environmental friendliness. Pirelli also presented the H88 Amaranto and G88 series to the international press, developed for long distance transport and for construction vehicles respectively. The latest TS:01 series for lorries was also announced. All four products, according to Pirelli, are themed on the efforts to cut costs. The Italian group also presented a new package of services to support operators: the Pirelli Retreading System – the renovated Pirelli system to retread tyres; CQ24 International for road assistance; and Credit Tyre – the financing system for fleets and retailers. The growing specialization of the Italian group in the transport sector has also spread to training through the magazine Truck, a new free Pirelli house organ which will be added to courses organised by the Group to update and inform.
Continue ReadingHoosier Lays off Staff at Manufacturing Facility
A number of workers at Hoosier Tire & Rubber’s Plymouth race tyre manufacturing plant in Indiana, USA were laid off on May 26 in response to current market conditions. According to news released by the company, the layoffs constitute a “small workforce adjustment,” however the exact number of jobs lost was not specified. “This reduction in force is necessitated by the current economic and market conditions,” read the statement. “We believe we have taken careful steps to remain a major player in the very competitive national motor sports market place.
Continue ReadingUnrest Continues Despite Lifting of MRF Lockout
The lockout at MRF Ltd’s Arakkonam factory in southeast India has been lifted – but many employees are refusing to return to work. An announcement from management regarding an end to the ten-day-old lockout was made on May 27, yet the company’s dispute with the MRF United Workers Union (MUWU), which declared a strike at the Arakkonam plant on May 9, remains an unresolved issue. India’s Business Standard newspaper discloses that a number of MRF workers plan to file a Supreme Court petition against the company’s management. MUWU honorary president V. Prakash told the paper “we don’t have a choice but to file a petition in [the] Supreme Court” following recent failed talks. “The main plea would be to recognise the union,” he explained.
Continue Reading“Headway” Made in Conti Clairoix Negotiations
Negotiations between Continental AG’s French and German management and representatives of the French government and the CGT trade union have, reports Conti, “made a bit of headway.” The respective parties met in Paris on Tuesday May 26 to discuss solutions for the company’s Clairoix facility, and further talks are scheduled for later in the week. “We entered into a detailed discussion of the offer presented last week and argued for an adequate overall solution that takes into account seniority at the company and further training measures,” remarked Dr. Thomas Winkelmann, who represents Continental’s German management in his role as HR manager for replacement market passenger car tyres in Europe and Africa. “So far, union representatives have concentrated on uniform one-off severance pay for all employees affected. In the next round of negotiations we intend to talk over a detailed package solution.”
Continue ReadingMichelin India Project a Step Nearer to Realisation
Objections to Michelin’s Rs 40 billion (£530 million) greenfield factory project in Tamil Nadu, India have been overruled by the Madras High Court. On May 26 the court ruled against an environmentally based petition instigated by a local villagers’ association, stating that the need for employment and investment must take precedence.
Continue ReadingTyre Factory Closures ‘Should Support Price Discipline’
In the wake of Goodyear announced closure of its Amiens, France plant. Financial analysts have highlighted the ‘positive’ effect this will have on the tyre manufacturer’s “price discipline.” Amien has an annual capacity of approximately 6 million units, and its closure forms part of a Goodyear’s 15-25 million unit capacity reduction plan announced. When you factor in that the Amiens plant has between 800 and 1200 employees, the closure could result in cost savings of around $50 million, according to Deutsche Bank, with $700 million of gross cost savings expected this year. Goodyear’s announcement follows a number of other capacity closures across Europe including: Continental closing its 8 million unit capacity PCR plant in Clairoix France; Pirelli closing its 4 million unit Maresa Spain factory, Michelin reducing its capacity in France, Italy and Spain by 14 million units. In the US capacity cuts have been even more stark with Cooper reducing capacity by 10 million units in Albany, GA; Michelin cutting 4 million units in Opelika; and Bridgestone eliminating 9 million units in Nashville. This all equates to around 40 million units of capacity reduction in the NAFTA region. And as a result of the supply demand balance, this is likely to “support price discipline” say the analysts.
Continue ReadingBeijing Auto signals interest in Opel stake
China’s Beijing Automotive Industry Corp (BAIC) has reportedly become the fourth company to express an interest in buying into Opel/General Motors’ European operations. According to the Financial Times, BAIC wrote to Commerzbank’s Dresdner Kleinwort a day after the bidding deadline. However, the report also characterised BAIC’s offer “more an expression of interest rather than a formal bid” quoting sources close to the deal. Italy’s Fiat, Canada’s Magna, and Brussels-listed RHJ International all entered bids for the strategic stake on Wednesday, for which GM is seeking about 650 million euros ($900 million).
Continue ReadingChina Increases Scrappage Subsidy
While flagging Western markets are offering handouts to carmakers in order to lubricate sales, in China – with a car market still widely regarded as booming by comparison – has announced that it is to increase its own scrappage budget from one billion yuan (£95.6 million, $146 million) to six billion yuan (£573.6 million, $876 million). According to a China4Auto.com report, the move follows the success of the incentive program in rural areas.
Continue ReadingSunday Times Names Bandvulc One of Top 60 Green Companies
Bandvulc Tyres Ltd has been recognised as one of the Top 60 Best Green Companies in the UK by the Sunday Times. At the annual awards ceremony in London, Bandvulc’s managing director Patrick O’Connell received the award from Alistair McColl (Sunday Times Supplements Editor) for achieving a top 60 placement. Patrick O’Connell commented: “This is fantastic recognition of the hard work and commitment everyone at Bandvulc makes to ensuring we all have a sustainable future. To be in the top 60 companies raises the profile of tyre recycling to a new level and shows that this can be done to a high quality ensuring safety and sustainability in one package, bringing a complete solution to our customers that is second to none.”
Continue ReadingGoodyear to ‘Explore’ EMEA, Latin America Farm Unit Sales
Goodyear Tire & Rubber Company has announced plans that would end consumer tyre production at its Amiens, France plant and could result in the sales of its European and Latin American agricultural tyre businesses. Goodyear’s Asia Pacific farm tyre business is not included in the potential divestiture. The company sold its North American farm tyre operation in 2005. According to an official statement, ending consumer tyre production at the Amiens plant would result in the reduction of approximately 6 million units of production, which is part of Goodyears strategy to remove 15 million to 25 million units of capacity over the next two years.
Continue ReadingPirelli “Home” WRC Leg a Formidable Challenge for Tyres
Pirelli has reported a “difficult” yet problem-less three days at the all-gravel Rally d’Italia-Sardegna, the tyre-manufacturer’s home event. Ford driver Jari-Matti Latvala put the brakes on Sebastien Loeb’s domination of the 2009 World Rally Championship season to claim his first win of the year, while the five Pirelli Star Drivers took part in their second round of the six they will face in total, continuing their development in the Mitsubishi Lancer Evo X Group N cars. On an event that gave all six youngsters some extremely valuable experience of rough gravel, up-and-coming Finn Jarkko Nikara emerged best-placed of the Pirelli Star Drivers. Pirelli’s Rally Manager Mario Isola said, “These very rough conditions also taught our five Star Drivers how to blend consistency with their obvious speed, which will serve them well in the future.”
Continue ReadingContinental 2 Series Commercial Tyre: More Details
As previously published on Tyrepress.com, Continental has launched a new range of commercial vehicle tyres, representing four new design features. The tyres feature entirely new inner liner technology, dubbed “AirKeep” for its ability to stay inflated for longer, in addition to modifications to the belt, bead and contour design. The tyre will be manufactured primarily at the company’s plant in Puchov, Slovakia. It comes onto the market at a tricky time, with EU and UK new truck tyre sales down 34 and 20 per cent respectively, according to figures quoted at the launch. Conti is backing up its new range with a “Technology Truck” tour throughout Europe and the ContiCostCalculator, a new electronic tool based on research conducted by Continental and certified by DEKRA, which calculates the economic and ecological benefits of fitting the new range to customers’ fleets. These initiatives form part of the company’s response to the belief that, in these trying economic times, “you have to understand the pressures on customers and…be a business consultant,” as Conti’s general sales manager - truck replacement Barry Guildford said at the tyre launch in London. He also told Tyres & Accessories that the company was “heavily investing in training [its] salespeople”, in order to impress upon customers the long-term cost benefits of fitting the new Continentals. “It’s about educating the fleet,” he concluded.
Continue ReadingCorruption Trial Against Former Double Coin Chairman Begins
The corruption trial against former Double Coin chairman Fan Xian began in China on May 25. According to the Shanghai Daily, the 55-year old is charged with corruption involving 17.25 million yuan (£1.59 million), accepting 8.35 million yuan in bribes and embezzling 57 million yuan. At the first day of proceeding at the Shanghai No. 1 Intermediate Peoples Court, Fan denied most of the charges raised by the prosecution. The Shanghai Daily reports that he “tried to avoid key questions.” When the chief judge told him to answer questions directly, he allegedly answered by saying I cant remember clearly or I dont know.
Continue ReadingSchaeffler Signs Employment Security Agreement With Union
The Schaeffler Group and Germany’s IG Metall trade union have reached an agreement regarding employment security. The agreement, signed by IG Metall first chairman Berthold Huber and Schaeffler chief executive Jürgen Geißinger, represents the first practical result of the future agreement between the two parties outlined on February 23, 2009. According to the terms of the agreement, the threat of redundancies occurring before June 30, 2010 has been eliminated on the proviso that a jointly agreed upon package of staff cost reduction measures are reached. Due to the impact of the economic crisis and its resultant diminished orders and sales, the Schaeffler Group says it must lower staff costs by approximately 250 million euros.
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