Bandag Incorporated has reported consolidated net sales for the fourth quarter 2006 of US$253.7 million compared to consolidated net sales of US$252.3 million in the fourth quarter 2005, an increase of 1 percent. Consolidated net sales were positively impacted by approximately US$2.6 million due to the effect of converting foreign currency net sales into U.S. dollars.
Pirelli Competizioni, who are celebrating their century of participation in motor sport during 2007, have released details of an agreement reached with Grand-Am, under which the Italian manufacturer will supply its P Zero Racing tyres to teams competing in the Grand Am Championship during the three seasons between 2008 and 2010. This agreement covers both the Daytona Prototype and GT categories of the Grand Am series.
Automotive component supplier Hayes Lemmerz International, Inc. has announced further plans by which it intends to maximise long-term value for its shareholders through the ‘streamlining’ of its North American operations. Specifically, the Company announced:
SmarTire Systems Inc. has given details of restructuring plans that involve the closure of its UK operations. Company president and CEO Dave Warkentin announced, “We have taken significant actions to reduce costs. Since September, our overall staff level has been reduced by approximately 50%. As part of this initiative, we plan to close our UK facility at the end of February, 2007. We do not anticipate that this closure will affect our European sales efforts.”
Bridgestone Tyre Centre franchisees in Western Australia recently signed a three year agreement with Australia’s Leukaemia Foundation to supply two fully maintained Holden Commodore vehicles for transporting patients to and from treatment centres in the West Australian capital of Perth.
Detroit’s “Big Three” carmakers are casting an eye on the contract signed between Goodyear Tire & Rubber Co. and the United Steelworkers union at the end of last year as a potential model to emulate. Of particular interest is the trust fund the company set up to separate themselves from the responsibility of future retiree health costs.
Harpers Waste Management Solutions has adopted a managed tyre policy with ATS Euromaster at its two largest depots in York and Billingham. The agreement will see Michelin tyres fitted across 45 commercial vehicles in its fleet, marking a distinct change from the company’s previous tyre procurement policy which saw a number of different brands fitted by a range of suppliers.
Yokohama in the US has signed an OE deal with the Chrysler Group that will see the tyremaker supplying a large proportion of the tyres for the 2008 Chrysler Town & Country and Dodge Grand Caravan. This supply agreement is, according to the company’s OE sales and marketing department, Yokohama’s first high-volume OE deal with a US manufacturer.
Further to our recent news regarding the Formula One ‘red tyre rule’, it appears that official agreement on the regulations has not as yet been reached. While Bridgestone is happy that the issue has been raised, Bridgestone Motorsport has not at this time held any official discussions with the FIA and the competing teams regarding the proposal. Tyres and Accessories apologises for any confusion our previous news article may have created.
Under the new labour agreement to emerge in the wake of the USW strike, Goodyear Tire & Rubber Co. will cut starting pay for newly hired workers in the U.S. by 35 per cent to US$13 per hour.
Chief Executive Officer Robert Keegan gave details the new wage rate in a conference call, Goodyear’s first discussion of the contract since the 29 December announcement that the United Steelworkers union members had given their approval.
Pirelli UK Tyres Ltd is joining forces with Vacu-Lug, the UK’s largest independent retread manufacturer, in a strategic alliance that stands to strengthen the position of both companies.
The Goodyear Tire and Rubber Company have disclosed that the three-month USW strike cost them more than US$30 million a week.
Leading company executives said that Goodyear will continue to feel the strike’s financial impact through to the middle of the year, but the company has nevertheless achieved its goal of cutting costs.
Goodyear hopes to save US$610 million over a three-year period through the contract agreement that ended the strike.
Italian corporate giant Pirelli & Co SpA is reportedly in favour of seeing its tyre division listed on the stock exchange in March or April as trading conditions improve.
Pirelli’s Initial Public Offering (IPO) plans for the tyre division were dropped last year because market conditions were deemed unfavourable at the time, and instead the company agreed to sell a 38.9 per cent stake in the operation to a company controlled by six Italian and foreign banks. Pirelli & C SpA received 740 million euros (£499 million) from the sale of the 38.9 per cent share.
Under the terms of this agreement, Pirelli has an option to buy back the shares if the banks do not conduct an IPO within four and a half years.
Heavy vehicle manufacturer Navistar International Corp. has approved the fitment of Double Coin radial tyres as original equipment on a selected range of International Truck vehicles and IC Corp. school buses.
International has been, like many manufacturers and fleet owners, affected by global truck tyre shortages. Tom Akers, the company’s vice president of purchasing and logistics, has reportedly said they are pleased to have entered into an agreement with a tyre manufacturer who can “meet International’s production needs and strict quality standards at an affordable cost.”
While most of us were struggling to get over Christmas, the Goodyear Tire & Rubber Company were busy finalising the sale of its tyre fabric operations to South Korea’s Hyosung Corporation. The deal was closed on December 29, pending post-closing adjustments and the sale of its operation in Americana, Brazil.
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