Demand for Wet Tyres Grows
After a long summer soaking and autumn that is showing little sign of being different, demand for wet weather tyres is “soaring,” according to automotive retail chain, Hi-Q.
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Alcoa Launches Eight New Cast Aluminium Wheels
Product NewsAlcoa Automotive has announced that it has launched eight new cast aluminium wheels for Nissan and Chrysler Group.
Cooper in Lawsuit with USWA
Product NewsThe United Steelworkers of America (USWA) is to be tied up in yet another lawsuit, this time with Cooper Tire & Rubber. A grievance has been filed to delay the sale of the company’s Cooper-Standard Automotive division to the Cypress Group and Goldman Sachs Capital Partners.
Legal action is being taken on behalf of the 1,500 USWA members that work in four of the division’s plants across America.
UK Worst for Car Reliability
Product NewsJaguar has felt more pressure after itself and Land Rover came second and third from bottom in a survey of vehicle reliability and cost of repair.
Off-road specialist Jeep recorded worse results in the study of 30,000 vehicles from 27 leading manufacturers.
There was good news for the Far East, which remained number one for reliability in the analysis by independent automotive warranty firm, Warranty Direct.
Return of the Unipart Calender
Product NewsUnipart Automotive has announced the launch of a new marketing programme, designed to reposition Unipart’s place as an aftermarket brand.
Schrader Awarded TPMS Contract
Product NewsSchrader Electronics Ltd, part of Tomkins Industrial and Automotive Division, has been awarded the contract to supply remote tyre pressure monitoring systems (“RTPMS”) to Mercedes starting in 2006.
Dax Return Makes an Impact for Continental
Product NewsA year after returning to the Frankfurt’s DAX stock exchange, Continental’s management is saying that it “has profited noticeably from its return to the DAX.”
ACEA Condemns Proposal to Abolish Design Rights for Spare Parts
Product NewsThe European Automobile Manufacturers Association has criticised the European Commission’s decision to adopt the proposal prepared by Commissioner Bolkestein (Internal Market) aimed at abolishing design protection rights for automotive spare parts across the EU. The ACEA strongly believes that if approved, this measure would have a serious impact on the competitiveness of the European industry, and claims that the proposal has no clear benefits for the consumer.
Cooper Sells Automotive Unit
Product NewsCooper Tire & Rubber has announced that it will sell its automotive business, Cooper-Standard Automotive, to an entity formed by The Cypress Group and Goldman Sachs Capital Partners for approximately $1.165 billion in cash. The transaction, which is subject to certain post-closing adjustments, is expected to close in the fourth quarter of 2004.
Cooper-Standard Automotive, which had revenue of approximately $1.6 billion in 2003, is a manufacturer of fluid handling systems, body sealing systems, and active and passive vibration control systems, primarily for automotive original equipment manufacturers.
Thomas Dattilo, chairman, president, and CEO of Cooper Tire & Rubber said: “We are pleased with the transaction terms reached with Cypress and Goldman. We look forward to pursuing growth opportunities in our tyre business. We believe that after the transaction is completed Cooper-Standard Automotive will be well-positioned for continued strong growth under its new ownership.” Proceeds from the sale are expected to be used for debt reduction, further investment in operations and in repurchasing shares.
Future of US HP Tyres
Product NewsAccording to the US Tire and Rim Association the number of auto tyre sizes has jumped 120 per cent since 1991 to 249 different sizes. The association claims that 82 per cent of this growth has come in rim sizes of 17 inches or more and it believes the increase is due to the automotive industry’s passion for performance.
Statistics show that about 59 per cent of the increase run in rim diameters of 18 inches or more. However, the total number of tyre sizes actually decreased last year due to a sharp fall in 13 and 14 inch sizes. The number of 15 and 16 inch tyre sizes has also levelled out in that time.
The demand for high performance tyres with their wide, low profile stance is inspired by motorsports, says Warren Croyle, marketing manager for Dunlop tyres in North America. As the industry has increasingly fitted HP tyres as original equipment on everything from the sports coupe, to the family sedan, the effects have had a dramatic impact on the tyre industry and tyre buyer alike, explained the company representative.
As high performance tyres have become increasingly important to consumers so have they to manufacturers. “Dunlop sizing, in particular, enjoys an advantage as the industry trend continues toward lower profile applications,” said Mr Croyle. “We’re well-positioned now, and we plan to introduce even more low profile sizes this year and next. Using technology derived from Dunlop’s experience with low-profile race tyres, engineers are finding new ways to improve the handling capabilities of today’s high performance automotive fleet.”
The tyre manufacturer claims that growth among 17 and 18 inch wheels is slowing. It predicts that by 2008 18 and 20 inch tyre sales will amount to 6 million units; however, 22 and 24 inch sizes are expected to be the fastest growing sizes.
Delphi to Cut up to 6000 Jobs
Product NewsDelphi, the world’s largest automotive supplier, is to cut up to 6000 US jobs by the end of year.
SMMT’s Vehement Response to Industry Committee
Product NewsThe Trade and Industry Select Committee report on The UK Automotive Industry in 2004, has stated that the UK is “a good venue for automotive production.” It also went on to suggest that the industry calls for consistent implementation of EU regulations and strict monitoring of EU-wide schemes for emissions trading.
There was good news for the SMMT Industry Forum and Automotive Academy, which was praised for its work in improving competitiveness and addressing the skills shortage. However, it criticised falling new car prices and the action taken to open up the market for independent service and repair outlets.
The SMMT was disappointed with the criticism and has issued a contentious response following the release of the report. Chief executive Christopher Macgowan commented: “The fundamentals of this report are good news for the industry. While the sector is not without its problems, the Committee has recognised the steps taken to address issues of competitiveness and skills through organisations like SMMT Industry Forum and the new Automotive Academy.
“By continuing to work closely with the government we can ensure that threats identified in the report, such as the cost of regulation and low levels of investment in research and development, do not erode the UK’s significant automobile production and supply base.”
ATS and CV Show on Track for Another Success
Product NewsOrganisers have confirmed that exhibitor space sales for the combined 2005 Automotive Trade Show and the CV Show, are already well ahead of what the 2004 figures were this time last year.
The SOE, RHA and SMMT, which comprise the CV Show Partnership, claim that the combination is attracting a lot of interest following the success of this year’s event and that over 30 per cent of ATS exhibitors have already re-booked for 2005.
Crypton Technology Group is one of those companies, which has chosen to exhibit again next year. Walt Koloska, group sales and marketing director of the company comments: “After so many years of asking for a combination of ATS and the CV Show, this year’s event proved the value of listening to the market. The Crypton Group stand is a healthy 25 per cent larger than this year and will feature technology leading kit for all vehicle types.”
According to organisers, the show, which is effectively two trade exhibitions in one, had its most successful year in 2004, with a combined total of almost 29,000 visitors and 600 exhibitors.
Robin Dickeson, spokesman for the event, added: “The event has grown in recent years, which is testimony to the fact that it is delivering real value to exhibitors and their customers. Visitors can meet and do business with a huge variety of existing and potential suppliers under one roof, in a very short space of time, something that is of enormous value in these busy times.” cma
Chinese Car Sales Slow
Product NewsChinese car sales growth has slowed considerably. In the first quarter of this year car sales grew 44 per cent, in the second quarter they grew 22 per cent. By July sales growth slowed down to four per cent and now the booming sales figures appears to be stabilising as sales only increased by 0.1 per cent in August. The Chinese market will continue to be a force to be reckoned with, not simply due the country’s large population but also because year-to-date the automotive sales have grown by 21 per cent. Analysts are forecasting that the numbers will be similarly weak in the fourth quarter of this year.
Concentrating on Catalytic Converters
Product NewsThe widespread introduction of catalytic converters, almost a decade ago, has had a dramatic effect on vehicle pollution. Harmful emissions from petrol cars have been reduced by an average of 75 per cent. The effectiveness of ‘cats’, combined with vast improvements in the quality of fuels, means that today it is estimated that it would take up to approximately 100 new cars to produce the same emissions as just one made 20 years ago. To download this article as a PDF file, click here.
