On January 7, 2008, Daniel M. Sandberg resigned as Hayes Lemmerz’ vice president — Global Materials and Logistics and president, Automotive Components Group. Mr. Sandberg has accepted a position with Brembo North America, Inc., which recently completed the acquisition of the company’s Automotive Brakes business. Mr. Sandberg’s responsibilities will be assumed by other members of management.
Balkrishna Tyres is reported to be planning a new facility within the Special Economic Zone in Gujarat, northwest India. An investment of Rs 5 billion (£64.7 million) will go into the facility over a three-year period starting in the 2009 financial year, with the completed plant expected to have an annual output of 75,000 tonnes. The company’s head of finance, B K Bansal, told local media “we are analysing two to three Special Economic Zones in Gujarat and are in talks for acquisition of land, though nothing has been finalised as yet.”
January 2008 sees the launch issue 22 of the Timax catalogue from Klarius UK Ltd, listing the company’s full range of Timax emission control products. One key change is that since the company takeover in 2007, the Timax replacement exhaust brand now features prominently on the front cover, replacing Arvin. Klarius acquired the European Light Vehicle Aftermarket division of ArvinMeritor in August 2007. The acquisition included the manufacture and distribution of all emission control products including, in the UK, Timax exhausts and MetalCat & EuroCat catalytic converters.
On 20 December the Brose Group agreed to buy Continental’s Electric Motor operations. The acquisition is subject to the approval of the antitrust authorities. “We decided to sell the former Siemens VDO Electric Motor Drives operations and Continental’s cooling fan business to the Brose Group because Brose’s excellent positioning in the market segment creates exceedingly good prospects for that business,” said Continental’s Executive Board Chairman, Manfred Wennemer. The news follows Continental’s acquisition of Siemens VDO and, according Wennemer.
Apollo Tyres Ltd is close to acquiring a south east Asian tyre maker, according to CNBC reports. Reuters reported that the acquisition is expected to be completed early next year. No details have been given about which firm will be bought or the value of the deal. “We cannot comment on speculation that is not attributed to anyone. We have said we will continously keep looking at opportunities and there is no change in our stance,” Sunam Sarkar, chief of corporate strategy and marketing at Apollo Tyres, told Reuters. In early 2006 Apollo bought Dunlop South Africa for about 2.9 billion rupees.
Continental has wasted no time getting down to business following the completion of the company’s acquisition of the Siemens VDO Automotive unit. Day one of the “new Continental” was December 5, and Continental Executive Board chairman Manfred Wennemer travelled to Regensburg in Germany’s south, where the unit has its headquarters, to meet with the company’s newest colleagues.
“We warmly welcome the employees from the former Siemens VDO Automotive AG. By consolidating forces, we will forge our Continental into one of the world’s foremost automotive suppliers,” said Mr. Wennemer in his address to the unit’s employees, just one day after the official conclusion of the 11.4 billion euro purchase. “Following exhaustive preparation we can now tackle the integration with a flying start.
“It will take us another two to three months, however, to make a series of key decisions,” he added. “This gives us enough time to thoroughly examine data that antitrust laws have so far barred us access to. This applies in particular to information concerning sales, earnings and the number of employees by product group and plant. In the final analysis, the plans required for the operative business and especially for production will form the basis for the generation of synergy effects, paving the way for the emergence of a better and more efficient corporation from two top-notch companies as well.”
On the basis of planning to date, Continental anticipates net synergy effects in the order of at least 170 million euros as of 2010. “From what we know at the moment, we would be disappointed if it remained at this conservatively estimated sum. The amount will presumably be higher. We will be able to provide more details in the next ten weeks,” stated Wennemer.
The number of divisions under the Continental AG umbrella has increased from four to six; three of the existing divisions, Passenger and Light Truck Tires, Commercial Vehicle Tires and ContiTech, remain unchanged by this reorganisation and remain the respective responsibilities of Dr. Hans-Joachim Nikolin, Manfred Wennemer and Gerhard Lerch. The company’s old Automotive division and the Siemens VDO Automotive unit together form three new divisions:
Chassis & Safety – headed by Dr. Ralf Cramer under the Board responsibility of Dr. Neumann, this division is positioned to provide technology solutions for brake and chassis systems, the networking of active and passive safety systems, and sensors. The division has more than 27,000 employees at over 65 locations worldwide and reports more than 5 billion euros in sales.
Powertrain – this division is headed by Dieter Rogge, also under Dr. Neumann’s Board responsibility, and offers products and system solutions for powertrain, engine management, injection technology, sensors, actuators and hybrid technology. According to Conti, the division lays claim to worldwide market and technology leadership in the area of economical and eco-friendly driving. More than 27,000 people are employed by the Powertrain division at approximately 70 locations worldwide, and the division generates more than 5 billion euros in sales.
Interior – the new Interior division, headed by Helmut Matschi under the Board responsibility of Manfred Wennemer, positions itself as a worldwide market and technology leader for information management with systems that provide a link between the vehicle and the driver and passengers, between different vehicles, and between the vehicle and the infrastructure in which it operates. The division generates more than 6 billion euros in sales and employs more than 33,000 people at approximately 70 global locations. “Viewing ourselves as information managers in vehicles, we intend to optimise the flow of information,” said Mr. Wennemer regarding the division. “We will develop new functions that establish a link with the vehicle surroundings and present information in a way that motorists can grasp intuitively.
Dr. Karl-Thomas Neumann, Executive Board member in charge of corporate-wide technological development and the new Chassis & Safety and Powertrain divisions, stressed that with its expanded global operations and stronger product portfolio, the new Continental will be able to greater profit from future key auto industry trends: “Our innovative force and core competence cover precisely those automotive industry megatrends that will clearly dominate the upcoming years – safety, sustainability and Information”.
“In the Chassis & Safety division, we intend to integrate high-quality components in the area of brake systems, sensors and chassis to form a safety concept – called ContiGuard – that will make for zero crashes and injuries in the future. We are likewise well placed with respect to “zero emissions”, as envisioned for the future. We have, for instance, set standards with precise and highly efficient piezo injection systems for diesel and gas engines, as well as with hybrid drive solutions or roll-resistance-optimised tyres. In the Powertrain division we are determined to live up to our motto “Experience passion-driven mobility” by offering innovative products and system solutions that make diesel- and gas-engine vehicles more economical, reliable, powerful and eco-friendly,” said Dr. Neumann.
Continental now counts itself amongst the top five automotive suppliers worldwide and, based on 2006 figures, generates annual global sales in excess of 25 billion euros. The corporation currently employs approximately 150,000 people at nearly 200 locations in 36 countries.
Performance Fibers Holdings Inc. has signed a deal to buy North American tyre cord and polyester filament producer Invista Sárl. The agreement includes Invista plants in Salisbury and Shelby, North Carolina and Winnsboro, South Carolina; as well as several production assets currently operating inside Invista’s Querétaro, Mexico, facility. Terms of the agreement, signed on November 30, have not been disclosed.
Affected operations include the manufacturing of industrial polyester and nylon 6 fibres for use in a wide range of end uses, including tyres, as well as netting and fabrics for use in tyre manufacture. INVISTA Querétaro’s PET Resin business and its contract manufacturing operations for fine denier staple are not included in the agreement.
Continental AG reported on November 29 that it has received approval from the EU Commission for the unconditional acquisition of Siemens VDO Automotive AG. Antitrust authority approval had already been issued by the relevant national offices. This enables Continental to close the transaction in early December and transfer the purchase amount, €11.4 billion including tax benefits of around €1 billion, to Siemens AG. The integration of Siemens VDO into the Continental Corporation will begin immediately after closing.
In late October Marangoni announced the largest acquisition of new business the company has made outside of Europe. Its Brazil subsidiary, Marangoni do Brazil, has reached an agreement with Release Pneu Point to convert all eight of the retreading plants operated by Pneu Point to the Ringtread system. This conversion will be complete by the end of 2007. Pneu Point is a fast growing group that is active in the area of new vehicle distribution and new and retreaded tyre services, and Marangoni believes the adoption of the Ringtread system will permit Pneu Point to accelerate the growth of its retreading division and will allow a better integration with all its other activities.
The Zisser Tire Company has entered into an agreement with Sentaida International for the purchase of the Zisser Tire Wholesale operation. The acquisition by Sentaida International will be limited to Zisser’s wholesale division, and the transaction is scheduled to be completed on November 21. Sentaida International, part of the China based Sentaida Group, is currently headquartered in Southern California and owns the private brands Sentaida and Delinte. It also acts as the agent for a number of brands in the US, including Linglong UHP.
Retreader Vipal has placed a focus upon expansion in Eastern Europe this year, and this growth has greatly aided by the company’s decision to work alongside local market partners. The company reports that in Poland it has this year worked with the company PPH TOR SP. ZOO, who it says has been one of its important partners in the retreader’s expansion in this market.
(Akron/Tire Review) News reports say that the European Commission has extended the deadline for its inquiry into Continental AG’s proposed 11.4 billion euro acquisition of Siemens AG’s VDO automotive electronics unit to November 29. The original deadline was November 15.
SRI Sports Ltd., a division of the Sumitomo Rubber Group, has announced that it will acquire the US company Cleveland Golf Co. for US$132.5 million. The Japanese sporting goods maker will buy all outstanding shares in the California based company, the fifth-ranking maker of golf clubs in the United States, from Quiksilver Inc. SRI Sports hopes to complete the share acquisition procedures by the year-end. Through the acquisition, SRI Sports, which makes Dunlop brand golf and tennis goods, is aiming to expand its business in the United States.
CarbonBlack TyreXchange (CarbonBlack), Australia’s first independent online quoting marketplace for new passenger tyres and related services, outlined on November 12 its plans for a national rollout. Currently operating in New South Wales, Victoria and the Australian Capital Territory, the company intends to continue its expansion within Australia and further integrate value-added services including consumer and industry data, vehicle servicing, insurance, general car safety and maintenance, driver education and car detailing and accessories to its site. CarbonBlack managing director, Jodi Stanton, said that the launch of Australia’s first independent online quoting marketplace for tyres was a breakthrough for both industry and consumers.
“We only deal in new stock and can compare a vast range of tyres across multiple dealers and manufacturers for our registered users. A major benefit is the seller actually does all the work for consumers,” said Ms. Stanton. “For the passenger tyre industry this is an efficient leverage of existing Internet technology which also solves the issues surrounding traditional ways of marketing.
Hayes Lemmerz International has released further details on the sale of the company’s Automotive Brake Components division. The purchaser has been named as Brembo North America, Inc., a subsidiary of Italy’s Brembo S.p.A. The debt-free transaction sees US$58 million worth of shares change hands, and under the agreement announced on November 9, Brembo North America has acquired all of the stock of two Hayes Lemmerz subsidiary companies that own the brake manufacturing operations in Homer, Michigan and Apodaca, Mexico and certain assets used in connection with the division’s sales, marketing and engineering group located in Hayes Lemmerz’ headquarters in Michigan, USA.
The facilities in Homer and Apodaca manufacture brake rotors and drums for the North American passenger car and light truck markets. The division in total employs approximately 250 people, including 64 technical associates, and in 2006 earned annual sales of approximately $ 120 million.
“We have built a strong business with a solid reputation for quality products, delivery and performance,” said Daniel Sandberg, president of Hayes Lemmerz’ Automotive Components Group. “Combining this business with an international, technically dynamic brake company like Brembo will better position the combined company to grow and compete in the global market. Our brake teams in Homer, Apodaca and Northville look forward to leveraging our shared commitment to superior customer service, product innovation and technology.”
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