The European Commission wants to abolish motor vehicle taxes as well as the registration taxes for passenger vehicles in the European Union. The taxation should be linked more strongly to the use of the car and the output of carbon dioxide.
Amcast Industrial Corporation, has completed the sale of the majority of assets from its Flow Control operation. The sale was made to the US subsidiary of Dutch group Aalberts Industries NV.
Elkhart Plumbing, Elkhart Industrial and Amcast Industrial Ltd were all included in the sale. It is reported that the sale was made in order to comply with provisions of the company’s loan agreements. The net proceeds of the sale equated to approximately $54 million and will be used to reduce debt.
With an expected turnover of around $130 million (£71 million) and a workforce of 430 employees, Elkhart Products Corporation (EPC), is one of the three biggest players in the North American market. The company has an estimated 35 per cent share of the wholesaling market and a 10 per cent share of the retail market.
The agreement puts the Dutch company at the top of the world market for copper fittings and provides it with a strong American base. With the acquisition of the three production facilities Aalberts will also gain an extensive sales network in the US and Canada.
Following year-long negotiations Maxxis International has won an OE contract to supply General Motors. A new multi-year contract specifies that Maxxis will supply its brand of light truck tyre, LT225/75R16, to a General Motors ‘vehicle programme’ in the third quarter of 2006.
Titan International has reported positive first half results, with net sales of $288.2 million, (£158 million) from $260.0 million compared with 2003. Second quarter net sales increased by 29 per cent, reaching $121.2 million, (£66 million) from the previous year’s figure of $94.0 million. The net sales, for the period ending 30 June, were adjusted to reflect the sale of Titan Europe, which brought sales of $131.0 million.
A net income of $5.6 million (£3 million) was recorded for the second quarter, resulting in a $10.9 million (£6 million) year-to-date sum for 2004. The figure compared favourably to the previous year’s net losses of $(8.2) million for the second quarter and $(14.1) million for the first six months. Diluted earnings per share were $.32 for the second quarter, compared to a loss per share of $(.39) for the corresponding quarter of 2003, resulting in a $.71 increase quarter-over-quarter. Year-to-date earnings per share leveled at $.57 measured against a $(.67) loss per share in the first half of 2003.
Amcast Industrial Corporation is to sell most of its Flow Control division’s assets, the company announced today. Amcast has signed an agreement to sell the assets to a US subsidiary of the Dutch group, Aalberts industries.
DaimlerChrysler’s Mercedes unit has concluded negotiations with unions. The agreement between the two sides allows Mercedes to realise cost savings of 500 million euros that will take effect in 2006 and 2007, the company says.
Despite its dire financial situation Goodyear Tyre and Rubber Co. has paid its chief executive $1.5 million US, in salary and bonuses last year.
The Yokohama Rubber Co., Ltd., announced that it reached an agreement to license ExxonMobil Chemical Company, a division of Exxon Mobil Corporation of the United States, technology in connection with the Yokohama Advanced Liner (YAL), a new patented inner liner for automotive tyres. In addition, Yokohama and ExxonMobil Chemical are combining their respective expertise in the field to improve and advance the performance of YAL. The agreement also grants ExxonMobil Chemical rights to commercialize and globally market YAL related materials in the future.
SmarTire Systems Inc. (OTCBB: SMTR) announced that the Company has signed a $15 Million Standby Equity Distribution Agreement with Cornell Capital Partners LP. This financial instrument replaces the $15 Equity Line of Credit arranged by HPC Capital Management in 2003. SmarTire also announces that it has arranged a second $750,000 unsecured, promissory note with Cornell Capital.
Hayes Lemmerz, the number one wheel manufacturer in the world, is to retain its European Headquarters in Königswinter, Germany. This was confirmed by the European President, Fred Bentley, in an interview with Bonner Generalanzeiger. Königswinter has undergone a massive restructuring programme. Staff numbers have been reduced from 3000 to 690. But now the German plant is probably the most modern wheel plant worldwide. Bentley refused to confirm that Hayes Lemmerz is to invest a further 30 Million Euro. This was said by Bentley’s predecessor, Hans Buchel, who was fired in February this year. Bentley called it “a parting by mutual agreement”.
Continental AG (Hanover, Germany) and Daimler-Chrysler AG (Stuttgart, Germany) have signed an agreement on the original equipment delivery of commercial vehicle tires in the 2005 to 2007 time span. With the scope of the deliveries contracted, Continental becomes a volume-production commercial-vehicle-tire supplier to DaimlerChrysler. The agreement contains an option for 2008. Continental will equip the light to heavy trucks in the Atego, Axor, Actros and Econic model ranges with17.5″ to 24″ tires.
Pirelli and Alcatel have signed an agreement regarding the two companies’ submarine telecommunications business. Alcatel will pay Pirelli 52.5 million Euros for certain assets and intellectual property rights, while Pirelli will pay 45 million Euros for a five per cent shareholding in Alcatel’s submarine business.
Toyo and Michelin signed a licensing agreement, under which Michelin will license its PAX System technology to Toyo. With the new agreement, Toyo obtains rights to produce and market run-flat systems for passenger cars and light trucks based on PAX System, both for auto makers and the replacement tire market in Japan.
Indian press reports say that Continental will take a stake – said to be around 30 per cent – in Indian two-wheel tyre manufacturer Metro Tyres Ltd. The two companies currently enjoy a technology transfer agreement and Continental outsourcers tyres and tubes from Metro factories. Metro is confident that the volumes which the company makes for Continental will continue to rise, as the savings per tyre made in India can be anything up to 40 per cent. Metro’s sales grew by 15 per cent last year and the company is aiming for further, double-digit growth this year.
Slovak tyre manufacturer Matador is set to sign a joint venture agreement with Ethiopian firm Addis Tyre. Details are sketchy, but it is believed that Matador will pay around US$ 10 million for a stake in Addis of between 60 to 76 per cent. The Addis factory was built in 1971 by a company from what was then Czechoslovakia and produces 100,000 tyres annually for the local market. Matador will upgrade technology and equipment with the aim of tripling output by 2006.
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