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Pirelli unveiled its automatic Continuous Compound Mixing system (CCM) which complements its MIRS tyre production system and allows extremely accurate and environmentally-friendly mixing of up to 40 components. Seven patents have been applied for, with the first one granted in North America. Together, says Pirelli, CCM and MIRS will mean “a new generation of tyres, with performance unimaginable up to now.”
Following the Firestone recall, the US Government ordered a thorough overhaul of tyre safety standards. One of these is a new drum-test, which requires tyres to be tested for longer periods and at higher speeds. The Rubber Manufacturers Association has described the new tests as “extreme” and estimated that almost half of today’s car and light truck tyres would not pass the new test.
The Uniroyal Rallye 540 has been judged ‘best tyre’ in the Auto Express product honours list. The tyre came top against ten other brands of 185/60×14 H-rated tyres. Experts primarily looked at all aspects of wet and dry performance as well as economy. The product honours are designed to highlight to the U.K. public the best car accessories on the market.
US recycling giant, GreenMan Technologies has reported its sixth profitable quarter in a row. Net Sales for the second quarter ended 31 March 2002 totalled 5.561 million dollars, an increase of 21 per cent compared to the same quarter in 2001. The company processed the equivalent of 5.6 million passenger car tyres in the second quarter of 2002, an increase from 4.8 million in the same quarter of the previous year. Operating profits for the six months to the end of March 2002 have increased by over 100 per cent to 932,000 dollars.
India’s second-largest tyre manufacturer, Apollo Tyres, is to invest 1.1 billion Rupees (24.7 m Euro) in a plant to make radial truck and bus tyres. The plant will be sited at Baroda, in Gujarat, next to an existing Apollo factory and will use technology from Continental, with whom Apollo has an existing collaboration. Apollo claims a 25 per cent share of the truck and bus tyre market but poor infrastructure and a large number of two-axle vehicles mean that radialisation in this sector is a very low 2 per cent.
A short time after the Firestone recall in the US the Congress proclaimed a law so called Tread Act, the President signed it and it became effective. Especially the improvement in safety of the consumers was the target of this initiative, which should for a lot of products in the automotive area lead to changes, also for tyres and not only for tyre pressure monitoring systems. Among others was fixed that from November 1st all in the United States new registrated cars should be fitted with tyre monitoring systems. The American public agency NHTSA got the order to make proposals regarding the details of new tyre (safety) standards for the biggest vehicle market in the world. Under the title “Tire Pressure Monitoring Systems” the agency made a report, in which a lot of knowledge with regard of the contents in the Ford/Firestone dispute flued in. The NHTSA results should lead to a regulation the congress should agree on April 1st last year already. But even still now the procedere is not finished and got a set-back: The Office of Management and Budget (OMB), a White House department, gave the NHTSA report back to the agency and made some additional proposals the NHTSA should proof before a new standard regarding to car tyres could be concluded. Most criticized by the OMB were: too high costs – for the national economy, the affected industry and the consumers. That car makers and suppliers still have to wait until it will be clear which regulations will be common is a pity: We learnt to talk about the round black things and are not really surprised when we hear about elevations with fatale results about the state of tyres. The nowadays state of tyre technology however could lead to a situation that the tyre is at the far end of reasons for accidents. Our magazine gives the newest developments in the April issue in detail and also gave some insiders the opportunity to publish their point of view. They all agree in one point: The world of tyres – in technical aspects – stands before revolutionary changes, and a lot of new chances.
Former Ford Chief Executive Officer Jacques Nasser received $17.9 million in compensation last year when he was replaced at the helm of the second-largest automaker amid losses and declining sales.
Next month, Michelin will close its truck tyre plant at Burnley (UK) and move the production capacity to Romania where the company took over a local producer several months ago. This move was confirmed by CFO Michel Rollier during the Global Automotive Conference held by Morgan Stanley in New York. Rollier added that the truck tyre business should create an average operating profit between 13 and 14 per cent. In the previous year this had been just 8.8 per cent due to the declining market. – a result which was, in any case, much better than the competitors’ results. Rollier added that Michelin wants to intensify its passenger car tyre engagement in the European high performance sector and to improve its position in the winter tyre segment. Both segments meanwhile have become attractive markets. In the USA Michelin has been able to win market share and has exchanged 2.6 million tyres during the Firestone recall.
MRF was established in Chennai, India, in 1946 as a general rubber goods manufacturer and gradually progressed into tyre production in 1961. Today, the company enjoys the distinction of being the largest tyre company in the Indian subcontinent and the 13th largest in the world. The Far Eastern Economic Review “Annual Review 200”; rated MRF as one of India’s top ten companies and among the 200 most admired companies in Asia, for the last seven years consecutively. MRF was also rated the No. 1 Ethical Company in India by the Business World magazine. MRF operates six manufacturing plants in India at Tiruvottiyur, Arkonam, Kottayam, Goa, Medak, and Pondicherry and manufactures the largest range of tyres in India´s heavy duty truck/bus tyres, light commercial vehicle tyres, passenger car tyres, off-the-road/industrial tyres, 2-wheeler tyres and farm service tyres. Five of these plants and the conveyor belting factory at Arakonam are ISO 9002 certified. The plant at Pondicherry is QS 9000 certified. MRF Tyres are exported to over 65 countries in the Americas, Africa, Middle East, Australia and Asia. With the focus on exports, the company plans to increase market share and start operations in several new countries. MRF also manufactures conveyor belts and precure tread rubber, and its subsidiaries manufacture toys, speciality paints, leather and leather products.
Goodyear has released details of the group’s performance in various markets, for the year to date, to end February. Brief details are as follows: North American Tire: February industry shipments of consumer replacement tyres were 8 per cent up on last year. Goodyear shipments to dealers were flat, as some dealers pre-bought at the end of last year. Goodyear shipped 400,000 tyres as part of the Ford replacement programme. Industry shipments of commercial tyres were 14 per cent up on last year’s levels. Goodyear’s shipments were up, but not as high as the industry figure. Industry shipments of OE tyres were up 10 per cent for car tyres and down 17 per cent for commercial tyres. Goodyear’s unit shipments outperformed the industry. European Union: Consumer replacement tyres: industry shipments + 3 p.c. Goodyear shipments lower. Commercial replacement tyres: industry shipments – 6 p.c. Goodyear shipments reflect this figure. Consumer OE tyres: both industry and Goodyear shipments up. Commercial OE tyres: both industry and Goodyear shipments down. Eastern Europe: No segmentation available, but Goodyear replacement tyre sales were up, due mainly to market recoveries in South Africa and Turkey. Goodyear OE tyre sales were down slightly. Latin America: Goodyear replacement tyre sales down, mainly in Brazil and Argentina. OE sales were up. Currencies in Brazil and Mexico were revalued, but this was offset by devaluations in Argentina and Venezuela. Asia: Replacement tyre sales were up from last year, while OE unit sales were slightly down. Improved volumes in China and India helped improve operating margins over last year.
Almost 14,000 applied for the Dunlop Drivers Cup, but only 30 have been the lucky ones to realise their life’s greatest driving adventure. Ten days travelling through Australia guided only by a roadbook – on sand (with a Toyota off-road vehicle) and asphalt (with a TT roadster), through the outback, along the majestic coastline of the Great Ocean Road, crossing/passing the Snowy Mountains up to the spectacular finish in front of the famous Sydney Opera House. Between start and finish the “Dunlop Drivers” had to travel a distance of almost 4,000 kilometres and to pass difficult test sections containing elements of motor-sports. With this event the tyre producer wanted to create interest in the topic of driving safety within the main target group of the sporty drivers, interested in motorsports. The second motive is to demonstrate the influence of tyres on safe driving. The next Dunlop Drivers Cup (DDC) will be held in Malaysia in 2003, but there will be a major change in the concept: the DDC will take place with international teams. It is already clear that teams from Italy, Austria, Switzerland, the Netherlands, Czech Republic, Australia and the United States will join the event in February 2003. There is also a question-mark over the contribution of France, Poland and Hungary. “In the end the number of teams could grow from 15 up to 20 or 25”, said Dieter Seibert, Director Advertising Europe at Dunlop. General Motors is preferred as the official partner from the automotive side. Seibert’s midterm ideas for the future of the DDC go far beyond this point: he aims to reach a closer co-operation with the original equipment customers. Furthermore there could be scope for virtual race experiences supported by the computer. “Another idea is to connect the DDC more strongly with the topic of tyre and car development, for instance by visiting production facilities, technical centres or by using company owned proving grounds. The regional qualifications for Malaysia will be held from June to August, the national qualifications will take place in September – as usual.
Continental took the next step in developing their truck tyre strategy for the future when the company launched the HSR1 a regional traffic, steering axle truck tyre. The HSR1 development follows on from an ongoing market research campaign linked to technological development. This has identified the need for varying qualities in the tyres used for regional and long distance haulage – the HSR1 addresses those needs. The HSR1, as a steering axle tire, has been developed to offer two large gains in performance, the first in lower noise levels, the next in an increase treadwear performance, offering extended lifespan of the original tread by up to 40 per cent. Examples on show at the launch suggested that it could be possible to extend mileage by as much as 52 per cent over current expected performance of the HSR. The new generation of truck tyres also includes the HDR, a regional drive axle tyre, and the HTR trailer tyre. The HSR1 is part of a larger picture, in a move to offer a complete package to the haulier which not only offers better tyre performance, but greater economy though increased loads and potentially greater carrying capacity over an extended period. In an understanding of the importance of good quality casings to the retreader, especially given Continental’s co-operation with Bandag, Continental has incorporated its patented tread groove into the HSR1 which helps prevent stones from becoming lodged in the tread, thus preserving the casing for potential retreading. However, there is much more involved in the launch of the HSR1 than just another tyre. The HSR1 launch has been used to highlight Continental’s expectations for the future. We consider the impact of the latest technology on the future developments in Continental’s truck tyre division.
Vredestein and Giugiaro have teamed up for a second time to produce a stylish ultra high performance car tyre – the Ultrac. This follows the success of the Giugiaro designed Sportrac, which encouraged Vredestein to ask the Italian design studio to work with them on their first venture into the UHP segment. The result is a variation on a theme, the now familiar extended deep vee tread pattern has been touched by natural influences and now follows a sweeping pattern taken from nature, using the veining of a leaf as inspiration. Many will wonder whether a tread pattern designed by a stylist is as effective as a tread pattern designed by a tyre technician, but by adopting the rule that form follows function, the result is a tyre which appears to perform as well as any of its UHP competitors. The real innovation though is in the compound and the building of the tyres. The Silica Silane compound turned the mixing process into a chemical reaction which had to be time and temperature controlled. Further, the tyre building required an accuracy offered only by new tyre building lines. Vredestein invested some 50 million Euro in production facilities for the Ultrac. It is a venture which leads the Dutch manufacturer into the burgeoning UHP sector, however, MD Rob Oudshoorn told NRZ, “We don’t consider this as a growth market, we see it as another opportunity to sell tyres.”
Some weeks ago, Akron Beacon Journal business columnist Diane Evans stressed the point that Goodyear bonds have become “junk bonds”. Who could ever have imagined that, she asked? In a letter to the editor, Gibara said that Evans seemed to criticise him constantly and, more importantly, not give the readers the full facts, which forced him to answer back in the name of all the good Goodyear associates. The issue rumbles on – the supervisory board has given Gibara a bonus of US$ 1.25 million, which Evans believes is not a good decision. Furthermore, it has become obvious that a power struggle is going on within the group, between the two highest-ranking managers.
In 2001, the Michelin corporation generated a world-wide turnover of 15.775 billion Euro (+2.5% compared to 2000) and an operating profit of 1.04 billion Euro (-10.5% compared to 2000), thus showing a net profit of 314 million Euro (-28.4% compared to 2000). Under difficult economic circumstances world-wide, Michelin’s two main competitors, Bridgestone and Goodyear, could not even get close to Michelin’s operating profit, which corresponds to 6.6% of turnover. Bridgestone is still suffering from the consequences of the Firestone tyre recall in the USA, in 2000, and Goodyear has shown a loss for 2001. During a press conference at the end of February in Paris, Michelin’s COO, Edouard Michelin, clarified the course of business events during the last year, and Michel Rollier, Chief Financial Officer, offered a detailed view on the corporation’s figures. For the very first time, the corporation answered questions during a big press conference (other conferences were held in London and New York), and mentioned turnover and profit figures for the individual divisions.
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