Automotive suppliers Meritor, among other things one of the world’s largest steel wheel producers, and Arvin Industries will merge to form ArvinMeritor. The companies have combined revenues of $ 7.5 bn. The new company will create a premier global supplier of integrated systems, modules and components. Meritor shareholders will receive approximately 65.8 percent.
Automotive components group ArvinMeritor is to cut its US workforce by 30%, or 800 staff. The reason is a fall in orders from the truck industry in the USA. There are no plans for cutbacks at the company’s European facilities.
Tenneco Automotive has announced that it is to start formal consultations with employees regarding the closure of its Monroe factory in York with the loss of 392 jobs. Tenneco blames competitive pressures, requiring the company to reduce capacity. Subject to consultations, the closing will be complete by the end of the year.
Goodyear, Toyo and Cooper were the losers in mid May, although Toyo shares – like those of Pirelli – had increased in the beginning of the month. In the automotive industry, BMW, Mitsubishi and Volkswagen were the heaviest losers. But the shares of DaimlerChrysler, General Motors, Honda and Toyota lost as well. DaimlerChrysler, Fiat and Volvo even fell to an all year low.
The German automotive association (VDA), organiser of the 58th International Commercial Vehicles Exhibition, which took place in Frankfurt this year due to EXPO utilising facilities at Hanover, has announced record results for the event. 1,318 exhibitors from 42 countries filled the exhibition, including some 725 automotive parts suppliers, more than ever before. In all, 240,000 people attended the show, 85 % of them trade visitors. Bernd Gottschalk, president of the German automotive association stated, “The IAA grows in importance as a sales exhibition”. He believes that the whole climate at the exhibition was one of optimism and faith in the future of the business. This may be true, but it is only one side of the coin. Despite the pre-event high hopes there remained an apprehension that the recent economic boom might soon come to a sudden end. There are many indicators that the boom may be slowing down: Dramatic decline in sales in the USA, and an accelerating rationalisation amongst manufacturers making trade more intensive for both suppliers and the fleet business. This and high fuel prices and, last but by no means least, the distortion of competition as a result of differing transport regulations within the European Union. In the final analysis, the commercial vehicle business remains as full of contradictions today, as it ever has. Find out more in the November issue of NEUE REIFENZEITUNG.
Cooper Tire & Rubber, the US tyre and rubber manufacturer, announced sales of US$ 2.2 bn, which is an increase of 17% compared with 1998. Net income was US$ 135.5m. This figure is 6.7% up on 1998.
Delphi Automotive Systems is to participate in Cosivint, the internet purchase network of General Motors, Ford and DaimlerChrysler. According to the Wall Street Journal, six or seven other companies will join during this week.
The automotive business is moving more and more towards an “intelligent” chassis control or a “total chassis management”. In this scenario tyres are playing a role of growing importance. Today consumers and tyre manufacturers still focus on comfort, rolling resistance, handling etc. But what about tomorrow? Electronic sensors within the tyre will be able to supply additional information to the driver or to systems like ESP. For 20 years, the interaction between road and tyres has been studied at the University of Darmstadt and has for example led to the so-called “Darmstädter Tyre Sensor” or a special trailer for measurements concerning tyre noise emission. But in mid October – after events in 1996 and 1998 – this was also the place where the third “Reifenkolloquium” was held for international experts to discuss topics related to research and development in the tyre, wheel and related businesses. About 90 attendees were at the event this year. After an introductory speech entitled “The Tyre – Key Component For Driving Dynamics And Steering” another twelve lecturers followed. Divided into four sections “Tyre/Road Noise”, “Tyre Evaluation/Test”, “Models & Simulation” and “Sensors & Road Parameter Evaluation” they reported the recent results of their studies. Some of these, which are not too technical, are summarised in the November issue of NEUE REIFENZEITUNG.
Marc P. Frissora, President and CEO of Tenneco Automotive since April 1999, succeeds retiring Dana G. Mead as Chairman of the US manufacturer of shock absorbers and exhausts.
Continental AG and Robert Bosch GmbH, together with a number of other companies, intend to create an electronic communication and transaction exchange. The reason is to simplify and speed up business transactions between automotive companies and their suppliers.
Tenneco Automotive, the manufacturer of Monroe shock absorbers and Walker exhaust systems, has laid off 285 salaried workers at four sites in the USA. The move follows a steep fall in operating profits and is part of a world-wide programme of up to 700 job cuts. Tenneco has 70 factories in 21 countries.
The Anderson Consulting Supplier Index recently carried out a survey to establish the most stable and competitive US automotive suppliers and ranked Hayes-Lemmerz joint second alongside Federal Mogul. Top performer was Tower Automotive.
Delphi Automotive has exclusively ordered membranes from ContiTech Elastomerbeschichtungen GmbH. They are to be used in pressure sensors for fuel injection systems. This year ContiTech will produce 40,000 of these membranes for the US-based automotive supplier, in 2001 the number will be doubled.
Goodyear has developed an agreement with Phase IV Engineering of Boulder, Colorado aimed at fully developing a tyre pressure monitoring system. After the recent agreements with Michelin and Cycloid Systems this is the third such agreement Goodyear has completed. The long term aim of this strategy is not only to develop a fully operational system, but to extend Goodyear beyond the automotive tyre field.
Meritor Automotive, a subsidiary of the Rockwell group, has announced the expansion of production at its wheel plant in San Luis Potosi (Mexico) to two million units annually. The expansion is necessary because of increased demand in the North American OE market for light truck and pick-up wheels and includes the completion of assembly facilities. A major consumer is Daimler Chrysler (Dodge Ram).
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