Kumho Expands High Performance Range
Korea’s Kumho has added two new HP tyres under its Ecsta brand in Europe – the HM KH31, which competes for a slice of the lucrative medium car market, including such perennial top-sellers as the Ford Focus, Vauxhall Astra and VW Golf; and the X3 KL17, which is targeting more luxurious vehicles. The manufacturer also says that it aims to continue to increase its OE business in Europe, an ambition exemplified by the recent agreement with Mercedes-Benz to supply the Ecsta KU19 in size 245/45R18 for the newest model Viano X-Clusive. The company now does global OE business with Chevrolet, Chrysler, Ford, Hyundai, Kia, Mitsubishi, Smart, Volkswagen and Daimler, to whom it has supplied tyres for the A-Class model since 2007. Kumho’s new KH31 straddles the HP and UHP markets, replacing the company’s own much-vaunted KH11; a tyre that has proved successful in many rounds of European tyre tests. The company’s Birmingham-based European Technical Centre, known as the KETC was instrumental in the development of the new tyre, and the tread pattern, construction, compound and testing were all controlled from there. The key target for improvement was aquaplaning performance – lateral and longitudinal. The company believes that the KETC has been able to build on the abilities of the KH11 to yield further improvements in its wet weather performance.
Continue ReadingGoodyear ‘Poised for Significant Earnings Improvement’
Goodyear Tire & Rubber Company reported first quarter 2009 sales of $3.5 billion, down from record sales of $4.9 billion in first quarter of 2008. However, Goodyear only reported net losses of $333 million, compared with Goodyear net income of $147 million (60 cents per share) in the 2008 quarter. While obviously significant the losses certainly weren’t as bad as they could have been for two reasons. Firstly, they were, according to financial news sources, ahead of mainstream analysts’ opinions; and secondly because the total losses are roughly equal to the increases in raw material costs the company experienced in the first quarter ($332 million, up 31 per cent). The explanation for greatly reduced turnover was said to be the tyre market’s sharply reduced demand at the start of 2009, however as various sources are predicting that the US market has bottomed-out and raw material prices are believed to have stabilised, Goodyear could be in for a better second half of 2009. This view is certainly supported by Deutsche Bank analysts who sent out an investor’s note along these lines a week after Goodyear’s results were published. Despite reporting losses of $333 million in the first quarter of 2009 Deustche Bank analysts predict a short to medium term improvement in Goodyear’s financial performance: “Subtracting $1.38 billion (around $36 a tyre) of raw material costs from Goodyear’s first quarter 2009 results, and $1.33 billion ($28 per tyre) of raw materials from Goodyear’s first quarter 2008 results, we noted that GT’s non-raw material costs of goods sold declined to $1.6 billion from $2.2 billion.”
Continue ReadingNational Motor Museum to Host ‘World of Top Gear’ Exhibit
BBC Worldwide and the National Motor Museum have announced plans for a major new exhibition at Beaulieu. The new ‘World of Top Gear’ exhibition will reportedly be centred around the internationally famous Top Gear television programme. This unique agreement between the National Motor Museum and BBC Worldwide will enable visitors to experience first-hand the unrivalled atmosphere, drama and humour of the World’s Greatest Car TV Show. The exhibition aims to recreate the feel of the famous Top Gear Hanger and will showcase some of its iconic features, in a special display area at the National Motor Museum, Beaulieu, set in the heart of the New Forest.
Continue ReadingVTS Witnessing a Renaissance in British Made Tyre Sales
In these uncertain times when every news bulletin reminds us of the financial difficulty the country is in, it is rare to hear a positive story about British manufacturing.
Continue ReadingClairoix Workers Occupy Conti Facility in Sarreguemines
The discovery that 200 burly policemen were waiting for them on the German side of the border led to a spontaneous change of plans for up to 500 workers from Continental’s Clairoix, France factory. Instead of heading in the direction of a company facility in Aachen, the workers have opted to avoid the Polizei and remain on French soil. Thus they have turned their attention to the Conti plant in Sarreguemines.
Continue ReadingNokian Sales “Down in Line With Market,” says Gran
Actual interim results for the January to March 2009 quarter show Nokian Tyres’ operating income to be even lower than the figure anticipated by a Reuters analyst poll. The company’s interim report, released May 7, reveals an EBIT of minus 2.7 million euros for the quarter, down from 54.4 million a year earlier. The mean estimated EBIT calculated from a Reuters survey of eleven analysts was four million euros. Net sales during the quarter stood at 155.6 million euros, 36.8 per cent lower year-on-year. A net loss of 10.4 million euros was recorded in the quarter, contrasting with a net profit of 45.1 million euros in the first quarter of 2008. The analysts surveyed by Reuters anticipated a net loss of seven million euros. ”Nokian Tyres’ first quarter net sales went down to the level of the corresponding period in 2006,” noted company president and CEO Kim Gran. “Nokian Tyres did not make profit in the first quarter due to low sales, operative streamlining measures, currency devaluation on our main markets, and the seasonal weakening in our sales mix. We took strong actions to adjust our preseason sales and production to the changed market conditions.
Continue ReadingUS State Extends Tyre Scrapping Fee
The US state of Missouri’s House of Representatives has approved the extension of a scrap tyre fee for a further decade. The tyre disposal legislation originally introduced in 1990 gives authority for a fifty-cent fee to be collected from retailers of new tyres, and was set to expire on January 1, 2010. The House of Representatives passed the extension bill by 149 votes to 5 on May 5.
Continue ReadingPaper: Apollo Tyres to Pay $300 million for Vredestein
Indian newspaper, the Hindustan Times, has reported that Apollo Tyres is to pay $300 million for Vredestein Banden.
Continue ReadingUK Restaurants Now Included in Michelin Guide for iPhone
Admit it – you just can’t get by without your mobile phone. When it’s not glued to your ear you are busy prodding the thing with your texting thumb or downloading the latest must-read e-mails. And now, thanks to Michelin, the mobile can also offer sterling service should you wish to whet your appetite. Following the successful introduction of its ‘Michelin guide Restaurants’ iPhone applications for France and selected other European locations, the company has extended its offering to the UK and three other European countries plus two US cities. Developed by ViaMichelin, the applications list all restaurants selected by the Michelin guide, including starred restaurants and Bib Gourmand eateries offering excellent value for money. The European titles, which cover the UK, Germany, Italy, Portugal and Spain, are available in five languages (French, English, German, Spanish and Italian) while the stateside titles, covering New York and San Francisco, are available only in English.
Continue ReadingFirst Quarter Delivered ‘Unprecedented’ Low Demand, Says Rhodia
In reporting Rhodia’s first quarter 2009 results, company chairman and CEO Jean-Pierre Clamadieu has reflected upon a difficult three-month period. “As anticipated, we faced in the first quarter unprecedented low levels of demand,” said Clamadieu. “This, combined with the absorption of costly raw material inventories, resulted in a major adverse impact on profitability.”
Continue ReadingAustralian Science Agency Partnering in Tyre Recycling Project
Australia’s government-run national science agency, the Commonwealth Scientific and Industrial Research Organisation (CSIRO), reports it is working with Australian tyre recycling technologies company VR TEK Operations on the design and development of a new and improved method of recycling waste rubber for further use in the production of new tyres and a number of other products. The end goal of the project is to produce a devulcansied and activated high quality rubber powder suitable to be used in the manufacture of new rubber products.
Continue ReadingBirla Tyres Increases Permanent Staff Numbers, Resumes Production
Indian news sources report production at Birla Tyres’ stoppage-riddled facility in Orissa State has returned to normal, an event accompanied by a rise in the number of permanent employees at the plant. Management is said to have decided upon the resumption of “full production” and the induction of 280 of the factory’s casual workers as permanent employees, boosting permanent payroll numbers to 2,110. The plant’s 450 contractual workers have been upgraded to casual status.
Continue ReadingAnalysts Expect Nokian Q1 EBIT to Plummet
A Reuters poll of eleven analysts anticipates a 93 per cent drop in first quarter operating earnings for Finnish tyre manufacturer Nokian Renkaat. This massive decline is predicted due to much weaker demand. Pre tax and interest earnings for the January to March period are expected on average to fall to four million euros, contrasting strongly with the 54 million euros recorded in the same quarter last year. The mean prediction for net sales was a 32 per cent drop to 167 million euros, while a net loss of seven million euros is anticipated. For the full year, the eleven analysts expect net sales of 886 million euros, an EBIT of 140 million and a net profit of 82 million euros. The company will release its results on May 7.
Continue ReadingBriton Achieves First 125cc MotoGP Win on Dunlop Tyres
In his 50th Grand Prix, Bradley Smith shot to his first ever victory by a 13-second margin at the Gran Premio bwin.com de España on the 3rd May. This is the first time Britain has provided a winner in the category since Chas Mortimer won in Spain in 1973. 36 years down the line, Smith brought a win home for the UK, racing on his Birmingham-manufactured Dunlop tyres. Smith got away brilliantly, taking the holeshot and immediately building up a good lead at the front. By the midway point in the race the 18 year-old from Oxford had gained an 18 second advantage, riding a lonely race and eventually crossing the line 13 seconds ahead of the chasing pack for his maiden GP triumph. Dunlop, which designs, develops and produces all of its racing tyres at its Fort Dunlop plant, was pleased with the victory: “It was great to see a British rider on British tyres win this race, especially as it is the first time a UK rider has seen a win in 36 years. Congratulations to Bradley Smith for winning with such finesse and passing the chequered flag 13 seconds ahead of the competition. When the Brit’s do it, they do it well!” said Pat Walsh, sales manager Motorcycle Race for Dunlop.
Continue ReadingResolution Found in Michelin Thailand Dispute
The International Federation of Chemical, Energy, Mine and General Workers Unions (ICEM) reports that the two-month dispute between Michelin in Thailand and rubber workers backed by ICEM affiliate Petroleum and Chemical Workers’ Federation (PCFT) has come to an end. The disagreement, which involved the company’s factory in Laem Chabang, Chonburi Province, was resolved by tripartite dialogue and, says the ICEM, its “strong intervention”, along with that of French union FCE-CFDT and Michelin’s European Works Council.
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