Goodyear and TRW Automotive have signed a five-year agreement for a joint study of tyres, braking, suspension and steering systems. Goodyear will share its design and manufacturing expertise in conventional and EMT run-flat tyres, while TRW is a leader in the design of braking, steering and suspension systems. Both companies said they were excited about the potential for product improvement and development which the agreement would bring.
South African Tiger Wheels is planning to realign its investments in wheel manufacturing, which might lead ultimately to an overseas listing for the company. This was announced by CO, Eddie Keizan, as he unveiled an impressive set of financial results for the six months to December.
Goodyear, in co-operation with Siemens VDO Automotive has launched the first commercially available battery-less tyre-based pressure monitoring system. The new Tyre IQ system relays specific tyre information to drivers, and provides appropriate warnings when improper inflation is detected.
Patrick E. Miller has been appointed Vice President of Sales and Product Engineering for Hayes Lemmerz North American Wheels Business Unit. Prior to his new appointment, Patrick was a Vice President and General Manager for Alcoa Engineered Automotive Products.
The Speedline group, aluminium wheel producers and since 1997 part of North American Automotive supplier Amcast Industrial Corp. based at Dayton, Ohio, is for sale. Negotiations are said to be taking place with the Italian Mazzucconi group which operates from Ponte San Pietro, Bergamo. Fonderie Mario Mazzucconi S.p.A. is specialised in the production of aluminium components for the automotive OE market, where customers include Fiat, Mercedes-Benz, BMW, Audi/Volkswagen, Iveco.
Automotive supplier Montupet SA has completed a 75 million Euro investment at its Chateauroux plant in France. Montupet is one of the biggest suppliers of aluminium motor parts and produces for many car makers, especially the Ford group. The investment has given the plant the ability to produce 2.5 million cast aluminium wheels each year, making it the second largest facility in Europe. The company’s next project will be to invest in its wheel plant near Belfast to increase capacity from 700,000 to about 2.5 million units annually within the next three years. Montupet is the biggest aluminium wheel supplier to the PSA group (Peugeot and Citroen), one of three dominating suppliers at Renault and has recently begun supplying Nissan UK and Seat.
Lichfield-based Sherbrook International Ltd is entering the alloy wheel market and aims to hit the big time. It may be a new name in the wheel sector but the company has a long-standing heritage in the automotive industry and, for a newcomer to the wheels’ market, has an excellent record for getting things right. This could be just another player trying to make a few extra pennies from selling wheels while the market lasts but nothing could be further from the truth. The company has grown to a staff of 25, sourced from the automotive industry, each an expert in his or her field, carrying out negotiations between both ends of the supply chain. The company offers a 24/7/365 office service to the trade with constant monitoring of schedule performance and awareness of in-transit goods. This is built on effective customer communication and enables stock to be ordered from across the continent, or around the globe to meet Just In Time production processes. Rapid reaction to customer demands and a local technical support team result in quick problem solving which, with an agreed stock buffering system, eliminates supply chain down time from the manufacturing process. Now the company has a turnover in excess of 30 million Pounds and the financial backing of a large Turkish commercial organisation. Koç, this Turkish conglomerate, took over Sherbrook in 1998 giving the company a secure financial future and access to an even wider market and production base. Koç operates in Turkey on many levels, and its company logo of a Ram’s head in red outline is visible everywhere, especially in the Izmir area. In 2000 the Koç group had 9.2 billion Dollars of consolidated sales from 92 group companies employing 35,500 people. Core businesses cross many sectors, including automotive, banking, construction, household appliances, IT, and food and tourism. In the automotive sector the company has strong links with Land Rover, Ford, Iveco, Fiat and in components covers almost all areas. However, it is the Döktas foundry business which has led the company into wheel distribution in the UK.
Cooper Tire & Rubber has reported a 50 per cent rise in net income in the 4th quarter of 2002, compared to the same period in the previous year. Net income was $23 million on a turnover of $842 million (4Q 2001: $16 m/$777 m). For the year, the Tire Group posted a turnover of $1.8 billion ($1.7 bn) with unit sales up 5 per cent and the operating profit rose 88 per cent to $137 million, although the 2001 figure was affected by class action settlement charges totalling $72 million. Excluding these charges, operating profit for the year declined by $8 million or 5 per cent. Sales for the Automotive Division last year rose 7 per cent to $1.6 billion. Thomas A. Dattilo, Cooper chairman, president and CEO, said that the group had achieved its targets for the year and the outlook for 2003 was “challenging”.
In a series of staff changes at Alcoa, William F. Christopher, 48, has been named executive vice president, Alcoa and Group President for Alcoa Aerospace, Automotive and Commercial Transportation. He has been responsible for aerospace and commercial transportation since September and now adds Alcoa’s global automotive market to his remit. This group includes Howmet Castings, Alcoa Fastening Systems, Alcoa Wheel and Forged Products, AFL Automotive, Alcoa Cast Wheels and Alcoa Automotive businesses.
Alcoa is to cut 8,000 jobs after posting a fourth quarterly loss of 223 million dollars. The loss included charges of 95 million dollars for restructuring of operations serving the aerospace, automotive and industrial gas turbine sectors. The restructuring mainly affects Europe and South America. Alcoa has also announced that it is to sell its non-core speciality chemicals and packaging equipment businesses.
Smithers Scientific Services Inc. has reorganised as a result of its acquisition last March of a company specialising in environmental toxicology and analytical studies. The reorganisation brings three independent companies under the umbrella of the Smithers Group with worldwide headquarters in Akron, Ohio.
Amcast Industrial Corp. has reported results for fiscal 2003 1st quarter. Sales were up 15 per cent at $155.8 million (1Q 2001: $135.2 m). The net loss was $7.2 million ($5.5 m). Adding the cumulative effect of an accounting change increased the net loss to $53.7 million. North American Automotive sales were up 29 per cent while sales at Speedline in Europe rose 13 per cent. Operating expenses decreased by 2 per cent in the quarter, which Joseph R. Grewe, President and COO, described as “encouraging”.
In a study of Automotive Emerging Technologies by J.D. Power in the USA, safety-related features were more important to motorists than entertainment or convenience. The most popular safety feature on the motorists’ wish list was a tyre pressure monitoring system, prompted by recent tyre recalls. However, the study found that the price of these features is important – one feature which was high on the list was infra-red night vision, but interest dropped dramatically when consumers were told this would cost $1,800.
Visteon Corporation and SmarTire Systems Inc. have established a partnership agreement bringing to market a “best-in-class” solution in automotive tyre monitoring technology. The two companies have agreed to combine their technical capabilities in working with automobile manufacturers to design and manufacture the latest in tyre monitoring systems. The partnership merges Visteon’s vehicle integration expertise, global design and manufacturing capability with SmarTire’s patented, wireless, tyre pressure and temperature monitoring system. The demand for these systems is growing significantly from global automobile manufacturers. ”This agreement is exactly the type of agreement we need to make,” said John Kill, Visteon Vice President of Product Development. “It combines the strengths of companies to cost effectively deliver the technologies our customers want and need.” The agreement places SmarTire in partnership with a Tier 1 automotive parts supplier. “Original equipment manufacturers rely on Tier 1 suppliers to provide the products, quality and scheduled deliveries required by the automotive industry,” reports Robert Rudman, SmarTire’s President and Chief Executive Officer. “This relationship with Visteon opens the door for SmarTire to the original equipment marketplace. Together, the two companies will market high quality, low-cost SmarTire solutions to automotive manufacturers globally.” The agreement also allows Visteon manufacturing rights for certain SmarTire products and establishes provisions that will enable SmarTire and Visteon to jointly explore other opportunities such as the commercial vehicle market.
The automotive parts division of TRW is to be sold to investment firm Blackstone Group for $4.7 billion, once TRW’s merger with Northrop Grumman is finalised. TRW recently sold its aeronautical systems business to Goodrich for $1.5 billion. TRW makes seat belt systems, air bag systems and other components, with annual sales over $10 billion. Blackstone has raised a private equity fund worth $6.45 billion and the TRW purchase will be the first through the fund.
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