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14926

International Habitat Conservation Award For Bridgestone Firestone

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Employees at Bridgestone Firestone North American Tire, LLC’s (BFNT) Warren County facility received international recognition for their contributions to wildlife habitat conservation at the Wildlife Habitat Council’s (WHC) 16th Annual Symposium, Beyond Borders: Reconciling Wildlife Needs & Human Activity. BFNT demonstrates its commitment to environmental stewardship and increasing native biodiversity by achieving habitat certification at its Warren County plant.

14927

Fourth MIRS Line For Pirelli

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Pirelli has begun to install a fourth MIRS production line at its US factory in Rome, Georgia. Production will be in full swing by June 2005 and the new line will produce predominantly Scorpion Zero SUV tyres, including the new 26 inch tyre, recently shown at the SEMA exhibition. Rome will become Pirelli’s main source of performance SUV tyres, with all of its 4×4 output being tyres of 22 inches or larger.

14928

Goodyear Dunlop expands FleetOnlineSolutions

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Goodyear Dunlop’s pan-European internet-based tyre management system, FleetOnlineSolutions which was launched to truck and bus fleet operators late last year, has been expanded. The improvements that have been made include major functionality upgrades, web-based interactive reporting and intensive training, says the tyre manufacturer. There are now more than 3,500 contracted vehicles on the system, based in three countries. FleetOnlineSolutions utilises the internet and is accessible to the customer, contracted tyre service providers and Goodyear Dunlop. All details of a customer’s tyre contract are available via the secure FleetOnlineSolutions website which also handles all reporting, invoicing and stock ordering, related to contracts. This means that whenever a customer needs tyre-related work to be carried out, it is done exactly to the specification agreed in the contract. In other words, the service-provider works precisely to each customer’s individual tyre policy and pricing structure as originally agreed with Goodyear Dunlop.

14929

Bridgestone Confirms Brazil Investment

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Bridgestone Corporation has announced that it will invest $160 million in building a new tyre plant. The news follows initial reports from Brazilian newspaper and the Associate Press news agency that the Japanese company was planning to spend $700 million on the project. Confirming parts of the reports, the company said Bridgestone Firestone Brasil, a wholly owned subsidiary of Bridgestone Americas Holding, Inc, would build the plant in the Brazilian state of Bahia. Construction will begin in 2005, and plans call for the plant to begin production in the second half of 2006.

According to the company, Bridgestone Firestone Brazil’s new plant will produce tyres for passenger cars and light trucks. The company says the new plant will have an initial production capacity of about 8,000 tyres a day. It will utilise state of the art production technologies and is expected to create more than 500 new manufacturing jobs and 1,200 indirect jobs in the region. The projects will increase BFBR’s capacity by roughly 25 per cent the company said.

Brazilian car production reached 2,020,704 vehicles for the period between January and November, up 20.8 per cent from the first 11 months of 2003, reflecting the country’s robust recovery from a sluggish 2003, when the economy grew less than 1 per cent. The auto industry’s trade association is predicting an output of 2.2 million vehicles by the end of 2004.

Referring to the $160 million expansion plans, Jorge Gonzalez, president, Bridgestone Firestone Latin American Operations, said: “This substantial new investment is evidence of our optimism in the strength of the Brazilian economy and our belief in our Brazilian team-mates.” Earlier reports which, were later found to be inaccurate, had suggested that the company would be willing to invest an even greater amount.

14930

More Than Just Products

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Today, every company that wants to be successful in fleet business needs a lot more than just good products, nowadays that is just a prerequisite. Those responsible at Bandag Inc in Muscatine, Iowa, are convinced that the right service and the right network is even more important than the products. Bandag claims that it has both, and is trying to further integrate all of its 220 European dealers into a single global retreading network. In order to promote this policy, the company invited 20 of its dealers from around the UK and Ireland to visit its American headquarters.

14931

George Marshall Dies

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It was with great sadness that we learned of the death of George Marshall on December 15th 2004, aged 81.
George was well known in the tyre industry throughout the world, having edited Tyres & Accessories magazine since January 1971 and having been owner and publisher of the title from September that year until September 1987.
Having spent his early career running his own tyre retreading and retailing businesses, George had a thorough knowledge of the industry, both from a practical and political viewpoint. His achievements were many, having been instrumental in founding the Brityrex exhibition in the UK and its South African and Australian equivalents, Satyrex and Austyrex. George also played a role in the foundation of the Imported Tyre Manufacturers Association and the Tyre Wholesalers Association in the UK.
His lifetime spent in the tyre industry was recognised internationally, when he was honoured by the AMF (TEI) at Essen in 1986 and presented with the Industry Leadership Award by the American Retreaders Association in 1987. George received another accolade from the ARA when he was inducted into their International Tire Retreading and Repairing Hall of Fame in April 1995.
George Marshall was a striking figure, instantly recognisable and known to tyremen all over the world; he was definitely his own man, with his own ideas and some of these were not universally popular. Nevertheless, whether you liked him or not, or agreed with him or not, you could be sure that his views were honestly held. It is a mark of the man that those who he criticised in print will be as saddened at his passing as those who he counted as his friends.
As far as Tyres & Accessories is concerned, George was instrumental in rescuing what was a moribund trade magazine and building it up to become the best-respected journal in the industry, not just in the UK, but globally.
George leaves a widow, Edna, to whom Tyres & Accessories extends deepest sympathy; a sentiment no doubt echoed by George’s many friends in the worldwide tyre community.
But, as so often in the past, let George Marshall have the last word. Here is an extract from the last Editorial column that he wrote for Tyres & Accessories in September 1987. The article was entitled “It’s been a great 16 years!” and it sums up George Marshall’s life in tyres, as he wrote thus:
“Never in my wildest dreams did I, when I took over T&A, even think that I would see so many parts of the world and make friends and meet so many tyremen in so many different countries. Nor did I ever think I would become a public speaker at tyre functions around the world.
“I count myself as one of the luckiest men in the tyre industry for having been able to put back into it something it has given to me – a remarkably eventful and enjoyable life.”

George Marshall 1923 – 2004

14932

Bridgestone to Invest $700 million in Brazil

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The Associated Press new agency is reporting that Bridgestone Corp will invest $700 million (£364 million) in the construction of a new factory in northeastern Brazil, according to Brazilian news sources.

The company plans to build the plant in the state of Bahia because of strong expansion in Brazil’s motor vehicle production industry, the daily Valor Economico newspaper said. Bridgestone’s Brazilian unit had no immediate comment on the report. The company says it plans to invest $300 million (£156 million) in the first stage of the project alone.

Bridgestone’s existing factory in a Sao Paulo suburb produces up to 30,000 tyres per day. The Valor newspaper did not reveal details of the new plant’s production capacity, although it is likely that the new plant will be used to produce passenger car tyres.

Brazilian car production reached 2,020,704 vehicles for the period between January and November, up 20.8 per cent from the first 11 months of 2003, reflecting the country’s robust recovery from a sluggish 2003, when the economy grew less than 1 per cent. The auto industry’s trade association is predicting an output of 2.2 million vehicles by the end of 2004.

14933

Indonesian Tyre Production up 18 per cent

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Indonesia’s car production total for the first eight months of 2004 was up 18 per cent compared with the same period last year, reported the Indonesian APBI tyre association. In addition to the production increase, which equates to 23.37 million units, APBI chairman, A Aziz Pane explained that exports also rose to $301 million in the first eight months of 2004, from $247 million in the same period the previous. Mr Pane said exports contributed more to the sales total as sales on the domestic market had been depressed with large imports of cheap second hand tyres from China.

14934

1 in 8 Vehicles ‘Dangerous’

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Recent research carried by car care company, motoreasy has found that one in eight vehicles has at least one illegal and potentially dangerous tyre. Based on more than 1,000 tyre inspections taken at a number of the company’s approved independent garages across the UK. According to the research a further 24 per cent of tyres had tread so close to the legal requirement, a replacement would be needed “imminently.”

Regionally, Londoners were found to be the worst offenders, with a fifth of the cars tested running on tyres below the legal limit. In contrast, motorists in Scotland had the highest pass rate with only 6 per cent of cars in need of a replacement tyre.

The current legislation requires tread depth to be at least 1.6mm across the central three-quarters of the width of the tyre. This rule also applies to the spare tyre. Even so 17 per cent of those inspected were illegal, or would be following what the company describes as “a short usage.”

Quite apart from the obvious safety benefits of having correctly fitted tyres (shorter stopping distances, reduced likelihood of aquaplaning), according to this research, drivers are foregoing the main financial benefit of using safe tyres, i.e. improved fuel economy. Not to mention the legal costs: three penalty points and a fine of up to £2,500 per tyre.

“Added to this, insurance companies are within their rights not to pay out on claims if the vehicle insured is not in a roadworthy condition. It’s shocking that so many motorists seem to ignore the conditions of their tyres – something that should ideally be checked every fortnight,” commented Motoreasy managing director David Gerrans adding: “A simple method of checking the tread is to use a 5 pence coin. Slot an upside down coin into the tread of the tyre and the depth should come up to the top of the Queen’s crown. If you don’t reach the crown, it’s likely your treads are nearing the end of their life and should be replaced.”

If Motoreasy’s research is correct, millions of drivers are failing to meet the minimum legal standard. In light of this, it makes the manufacturers and UK trade associations attempts to introduce a three-millimetre minimum tread depth look a fair way off.

14935

Can Russia Close the Gap Between Itself and Europe?

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If we take a look at the current state of Russia’s tyre market, two main features can be identified. Firstly, there is the low-key presence of Western tyre manufacturers when it comes to owning production facilities in the country. With the exceptions of the Michelin owned factory near Moscow, and the plant that Nokian has started building, it appears as if other companies are only just starting to recognise Russia as an interesting market. This supplement to TYRES & ACCESSORIES and NEUE REIFENZEITUNG provides a look at the particular characteristics of the Russian market, introducing the important players and providing an outlook on the future development of this part of the world. Will Russia be able to close the gap between Europe and itself?

14936

Amtel Expands into Europe

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Following the news that Amtel was in “detailed discussions” with Vredestein Banden, Amtel president, Sudhir Gupta has confirmed that his company will buy Vredestein Banden and that it is planning initial public offerings (IPO) in London and Moscow in the next two years.

According to Dr Gupta, Amtel is planning a primary listing on the London Stock Exchange followed by a secondary listing on the Russian Stock Exchange. In a conversation with far eastern business publication, Business Times, Dr Gupta explained why the IPO would take place in London and not New York. “Europeans always understand Russia better than the Americans and most of the investment in Russia is European. That’s why we think London is a better place to list.” The secondary listing is also the result of ‘encouragement’ from the authorities for successful companies to list on the Russian Stock Exchange, and because “the stock exchange has good liquidity because of high oil prices.”

The listings are due to take place in one of two time frames; either October to November 2005 or April to May the year after, the Amtel president said. Currently, Dr Gupta owns about 85 per cent of Amtel. An international investment fund managed by Templeton Asset Management Ltd, owns 5.65 per cent, while 10 per cent of Amtel’s shares were recently sold in a private placement for $34.2 million. These shares were bought by about 22 institutional investors in Europe, the US and Russia.

It is clear that a key part of Amtel’s expansion plans will involve venturing outside of Russian borders. One part of this is the company’s purchase of Vredestein Banden. By purchasing the Dutch company, Amtel appears to have been aiming to buy a ready-made foothold in the market. At the moment Vredestein sells 40 per cent its tyres in Europe’s biggest market (Germany) and has well organised distribution operations across Europe.

14937

Autopromotec ‘Closes the Circle’

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According to the organisers of the 21st Autopromotec, the 2005 show will “close the circle, offering the entire gamut of products and services to the transportation industry.” The exhibition centre where the show is due to be held will undergo renovations and expansion, including the addition of two brand new halls. At the last Autopromotec in 2003, 936 exhibitors presented their products in an area measuring 100,000 square metres, with 83,000 visitors.

At the forthcoming event, the traditional sectors of equipment and tyres will be represented alongside the new categories of spare parts and car services. From the organisers’ point of view, adding the new product categories to the fair is a welcome benefit to Italy’s industry of vehicle spare parts, a sector that recorded revenues of 7.7 billion euros, 68 per cent of which was designated for export. As a result of the new block exemption rules, this industry will be forced to re-examine traditional distribution channels by adapting them to the market. According to those in charge of Autopromotec, this is a good reason to make the most of every opportunity to have contact with professional mechanics, adding that the show also provides the chance for manufacturers to “step up marketing manoeuvres and new product launches.”

By the time Autopromotec opens its gates, the BER, or Block Exemption Regulation, will have gone into effect. That will be followed by the “freedom of establishment” provisions on 1 October 2005, which will allow sales and auto servicing operators carrying out selective distribution to open branches in all EU countries.

14938

Alliance Continues to Profit

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In its recently published third quarter results, Alliance Tire has announced a net profit of $102,000 for the third quarter of 2004, compared with a net loss of $1.66 million in the corresponding period last year. Although this period represents the company’s third successive profitable quarter, quarter-on-quarter figures show a slight drop in growth.

Compared to 2003, Alliance reports that sales grew 26.3 per cent to $29.7 million. In the second quarter Alliance’s sales totalled $31.6 million. The company’s export figures continue to show impressive levels of growth. Alliance’s export sales grew by 37 per cent to $21.8 million compared with the same time last year. Agricultural, multi-purpose and industrial tyres for export make up approximately 75 per cent of Alliance’s export. Local market sales increased 4 per cent to $7.9 million, a figure that represents 27 per cent of total sales.

In the first nine months of 2004, the tyre manufacturer reports that net profits grew to $3.7 million compared with losses of $8.3 million in the corresponding quarter of last year. In the same period, sales increased to $93.4m, an increase of 29 per cent compared with the corresponding period in 2003.

Alliance chairman Isia Tchetchik said the third quarter growth was hindered by the port strike that prevented sales of $1.9 million. Despite this, he said, the company managed to achieve positive results that prove that Alliance is experiencing an improvement in business performance.

Joseph Anglister, Alliance’s president, said the break-through in sales to Central and South America continued in the third quarter, in particularly in Brazil where sales doubled to $5.1 million in the first nine months of the year. The company president also stated that Alliance continues to implement efficiency measures, something that likely to prove useful in the face of rising raw material costs. According to Mr Anglister, production costs per ton of output fell 2.5 per cent to $2.38 per ton, while production increased 19.4 per cent, to 27,527 in the third quarter of 2004.

14939

Michelin Joins the TRA

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Five more companies, including Michelin Tyres Plc, have joined the Tyre Recovery (TRA) association. This raises membership to a total of 25 companies.

Commenting on the company’s association membership a Michelin spokesperson stated: “As members of the BRMA we are encouraged by the response of the Tyre Recovery Association and its members to the challenge of helping Government meet the EU Landfill Directive. Like a number of other BRMA companies we feel we must show more than just financial support and take an active role in the new body. Our own recycling volumes are considerable and will make a significant contribution to the overall audited figures of the group, as well as demonstrating our positive environmental credentials.”

In addition to Michelin, Cardiff Recycling, Creigiau Tyres, Re-Tyre and Western Tyres joined the TRA.

14940

Europe’s Evanescent Motorsport Culture

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Motorsport isn’t just about speedy overtaking manoeuvres and exciting finishes. Instead a major part of its attraction is owed to the people that live for motorsports and who – if missing – would make the event that bit less interesting. Without doubt one of these people is Pierre Dupasquier. For 30 years the Michelin motorsport director has been generally regarded as the driving force behind the French tyre manufacturer’s involvement. In addition, he is one of the few who, although not a driver himself, is allowed to comment on races on TV. Tyres & Accessories had the opportunity to meet the passionate 67 year old Frenchman and talk about the coming season.

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