Schaeffler Willing to Sell Up to Save Company
Schaeffler Group’s billionaire owners (Maria-Elisabeth and son Georg Schaeffler) are reportedly willing to sell a significant amount of the family owned company in order to avoid a break-up of the automotive supplier. Initial reports in Thomson’s Merger News suggested Schaeffler’s owners were prepared to sell up to 75 per cent of the group in order to hold onto an anchor investment and prevent a break-up of the company. However, six hours later, Forbes quoted Detlef Sieverdingbeck, the firm’s spokesman, as saying that there is “no bottom or top limit.” The latest developments are being seen as a further concession designed to convince the German government to give Schaeffler emergency support. 24 hours earlier Schaeffler’s owners signed a co-determination pact with the union that represents workers at both the Schaeffler Group and Continental AG businesses. Analysts observed that Schaeffler’s willingness to sell its stock and cosy up to the unions shows just how precarious the situation is for both the Schaeffler Group and Continental AG. During the day’s trading Forbes reported that Continental had plummeted 21 per cent to 10.11 euros, the stock’s sharpest fall for 16 years.
Continue ReadingTurkish Tyre Factories Pause Production
Two of the largest tyre manufacturing plants in Turkey paused production for a week following reduced OE demand. The Brisa (Bridgestone/Sabanci) plant which produces Lassa branded tyres initiated a week-long production break in order to “realign production” company representatives told Tyres & Accessories. Turkish Pirelli Tyres Corporation also halted production at its factory in the north-western province of Kocaeli, according to the Hurriyet newspaper. Around 2,200 workers are employed at the two plants, 1,072 of which work for Brisa and will remain on the pay roll, Turkish Tyre-Labor Union representative Huseyin Cakar told Hurriyet.
Continue ReadingStrength & Comfort the Goal of Goodyear’s Latest Wrangler
New from Goodyear in 2009 is the Wrangler AT/SA, a tyre for 4x4 drivers seeking mobility both on and off the road. The Wrangler AT/SA has been released onto the market following extensive testing on the company’s on and off-road test facilities – tests that Goodyear says show the new tyre to outperform its major competitors and its predecessor in both wet braking and wet handling tests. Durability on rough surfaces comes courtesy of a generous serving of Kevlar. Two layers of the five-times stronger than steel material are built into the tyre in addition to the its two high-tensile steel belts; the main benefit the layers offer, says Goodyear, is improved resistance to punctures in the tread – however Kevlar layers also act as a sound barrier, absorbing noise for an especially quiet ride. This combination of strength and silence is part of what the manufacturer calls its ‘SilentArmor Technology’, a proprietary innovation first introduced on Goodyear 4x4 some four years ago.
Continue ReadingSacramento Samurai Strikes
Tyres fitted to cars parked in the street in the town of Lincoln, California (to the north east of Sacramento) were sleeping a little easier this weekend, after a large sword that was used to slash city vehicles’ rubber was recovered by the police Friday (21 February). It was reported that a 19 year-old woman named Ashley Belisle was arrested on suspicion of felony vandalism through swordplay and was taken to Placer County Jail in Auburn, though was released later. Posters on the Sacramento Bee’s crime blog, however, were ready to leap to conclusions. Blogger Soylent_Green_is_now heaped the blame on cultural influences, suggesting “one too many anime conventions” as the inspiration for the wave of destruction; meanwhile Briencook took a more reasoned approach, stating, “What a bizarre (and costly) crime spree. She must be dealing with some mental problems. If not, Big-O is hiring.” However, the frustration of finding your tyres ripped by a rapier was possibly best surmised by lovemycity916, who simply declared, “fu**in ninjas.”
Continue ReadingSerbia’s Trayal Resumes Production
According to the Beta News Agency, production at one of the three tyre factories belonging to Serbian manufacturer Trayal Corporation will recommence during the week of February 23 to 27, following a three-month pause. The company’s Dedina passenger car tyre factory is the first to resume activity since work stopped at the Trayal plants in mid-November 2008. To begin with, the factory will produce 4,200 tyres per day, significantly lower than the target of 10,000 passenger car tyres per day (by the end of 2009) set when investment into capacity expansion was announced in February 2008.
Continue ReadingHome on the Ranger
The 4x4 line-up produced by Avon Tyres goes under the ‘Ranger’ brand name, and covers five distinct tyre ranges, each designed to cope with the varying demands of modern four-wheel drive vehicles. Those SUV owners more at home on the road may find what they are looking for in the Avon Ranger Sport, a tyre with most of its dynamic abilities focused towards performance on the blacktop. Especially suited to the latest 18-20in fitments used both as standard equipment and extensively in the aftermarket, the Ranger Sport is a low profile, V-shaped tread pattern high performance tyre available in V-rated sizes.
Continue Reading“Like a 756 on Steroids”
Dunlop has launched its successor to the popular D756 motocross tyre, the Geomax MX51 in addition to its new MX31, which will replace the D773 on soft-terrain. The new Geomax features a more open centre tread and greater tread volume in the shoulders, alongside greater rigidity in the sidewall, making the tyre more compatible with lower air pressure.
Continue ReadingGoodyear to Start Danville Layoffs in March
The USW approved an agreement with Goodyear that would put the tyremaker’s Danville plant on eight-hour work shifts, five days a week, and offer 200 buyouts to qualified employees. Over 400 Goodyear employees will be losing their jobs between buyouts and layoffs, a Goodyear spokesperson said. More than 2,400 people work at the plant, which is Danville’s largest employer. According to a letter to employees, the truck side of the plant will be realigned to three eight-hour shifts, five days a week. Currently, the plant operates seven days a week, 24 hours per day, on 12-hour shifts. In addition, the furlough that had been postponed from 21-28 February has been rescheduled to 21-28 March. There will be another furlough 3-9 August. The new operating schedule will start when employees return to work after the March furlough. The earliest layoffs will not be effective until March 23. Employees who want the buyout package – which offers $2,000 per year, up to $40,000, to employees between the ages of 53 and 55 with at least 28 years of service at the plant – must apply by 5 March. Salaried employees are not eligible for buyouts, but salaried positions will be cut, company officials said. Those employees will be eligible for the Supplemental Compensation Benefit Plan. Salaried position cuts will be announced by 20 March. (Tire Review/Akron)
Continue ReadingChinese Tyre Brands Target UK Buyers at Brityrex09
Chinese tyre manufacturers and wholesalers are targeting the UK market for increased export sales, with a growing number of exhibitors taking advantage of the opportunities presented by September’s Brityrex exhibition in Manchester. In the past month, a large number of Chinese suppliers have confirmed their involvement with the show as producers seek expanded international business to offset reduced domestic demand. Among companies now signed-up are Koryo Tyres industrial, Long March, Qingdao Odyking Tyre Company, Shandong Wanda Boto Tyre, Star Tyre Group of Shanghai and Techking Tires. “We are taking more enquiries and bookings from China than any other country apart from the UK at the present time,” explains Paul Farrant of show organiser ECI International. “China has such massive production capacity that it needs to sell more product overseas to compensate for lower demand at home. Brityrex is seen as a gateway to the UK market which is why exhibitors are so keen to get involved in the show.”
Continue ReadingGoldman Sachs, Keybanc Downgrade Goodyear
Market analysts at Keybanc and Goldman Sachs have downgraded their stock ratings for Akron, Ohio-based Goodyear Tire to “underweight” and “sell” respectively. Goldman Sachs reduced the stock from “Neutral” to “Sell” noting the company’s fortunes are linked to the success or otherwise of the Detroit carmakers. Goldman predicted analysts’ estimates for 2009 would also have to be cut. Meanwhile a Keybanc analysts listed the headwinds Goodyear is facing: Lower volume globally, unabsorbed overheads, raw material costs that will substantially exceed price/mix in the first half of 2009, but should turn positive in the second half, significantly higher pension costs; foreign exchange working against the company, and disruptions associated with capacity reductions are all challenges Goodyear Tire faces this year.” The bank revised its earning per share estimate to a loss of $0.50. “For 2010 our initial estimate is a profit of $0.85. We have low confidence in both estimates and both exclude what will be very large restructuring/plant closing and severance expenses,” Keybanc concluded, noting that these estimates are likely to change during the course of the year.
Continue ReadingPirelli Bringing its Diesel Technology to Scandinavian Markets
Pirelli Eco Technology, the Pirelli Group company operating in the field of pollution control technologies, has signed a partnership with Swedish diesel particulate filter specialist GB Environment Consulting AB in order to distribute the new Pirelli Diesel Particulate Filter (DPF) systems and spare parts in the Scandinavian, Finland and the Baltic markets.
Continue ReadingAsian ‘Tyrepac’ Retail Tyre Portal Officially Launched
February 19 marked the official launch of Asia’s first online retail tyre portal, Tyrepac Pte. Ltd. Backed by S$2 million (£906,000) in seed funds from various investors, Tyrepac plans to offer services throughout the region, commencing in its home territory of Singapore. The company will expand its services to Malaysia, South Korea, China, Hong Kong and Thailand by the first half of this year. Mr Ler Hwee Tiong, managing director and co-founder of Tyrepac, said, “There will always be a demand for tyres, since every motor vehicle, old or new, will need to have their tyres replaced depending on usage and driver requirements. In today’s competitive marketplace, we want to be able to provide motorists with a single platform that is convenient, has a comprehensive range of tyres, and offers transparent pricing for all products so that our customers can truly enjoy one-stop service that meets individual needs.”
Continue ReadingBekaert Sales Top 4 billion Euros in 2008
Bekaert, supplier of steel cord to the tyre industry, has reported consolidated 2008 sales of 2.66 billion euros and combined sales of 4.01 billion euros, and increase of 22.5 per cent and 17.3 per cent respectively. Growth in consolidated sales stemmed 17.7 per cent from organic growth, largely driven by passed on raw material price increases, and 5.8 per cent from the company’s acquisitions in Vicson (Venezuela) and in Proalco (Colombia). Fluctuations in several exchange rates largely compensated each other with a net negative impact of 1.0 per cent. Even in the fourth quarter of 2008, the economic downturn notwithstanding and compared with a strong last quarter of 2007, Bekaert posted consolidated growth of 5 per cent.
Continue ReadingBuyers Express Early Interest in TyreGenics
The administrator for TyreGenics appears confident that a buyer for the cryogenic tyre recycling operation could be found within a matter of months. The administrator said it has been encouraged by initial interest from potential buyers, and believe a sale could take place before the six-month administration period is complete should the Baglan site be purchased as a going concern. TyreGenics went into administration on January 15 following what administrator Begbies Traynor has described as a “sudden contraction” in the market for rubber sports surfaces, the primary end-market for the rubber crumb processed at the facility.
Continue ReadingMatador’s MP 85 Hectorra Delivers Strong On-Road Performance
The key product in Matador’s 4x4 range continues to be the MP 85 Hectorra. On the market since early 2008, the tyre is targeted at the UHP end of the 4x4 tyre sector, and is recommended for 90 per cent on-road and 10 per cent off-road use. The asymmetric tread of the MP 85 Hectorra features an outer zone with wider profile blocks and narrow lateral grooves. According to Matador, these ensure enhanced vehicle stability when turning. The inner zone contains narrower profile blocks and wider lateral grooves for improved wet weather safety and performance.
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