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.
On 11th November, The Society of Motor Manufacturers and Traders (SMMT) announced a new tyre exhibition for the UK. The show (as yet unnamed) will run alongside the Automotive Trade Show at Birmingham’s NEC between 29th April and 2nd May, 2001. The SMMT says that it makes good business sense for tyres to be a part of an aftermarket exhibition.
Avon Rubber has blamed falling car production in the UK for a 40% drop in annual profits to £3.3 million. Direct sales of automotive and technical products to Ford and Rover fell £7.6 million to £27.1 million. Shares fell 12.5p to 455p.
At a press conference in Milan, Mr. Marco Tronchetti Provera and Mr. Giovanni Ferrario reacted to speculation that Pirelli might diversify into other automotive components, as has Continental. Tyres “will continue to be an absolute core global business for Pirelli” they said, and emphasised that Pirelli would maintain its independence, while seeking alliances “wherever appropriate”.
Tyre manufacturer Cooper Avon wants to buy Siebe’s Automotive Devision. According to present information Cooper has to pay 244.5 million US-Dollar for the company which belongs to the British Invensys group.
Volkswagen has chosen 63 of its 10,000 suppliers to receive the ‘Corporate Supplier Award – The Leading Edge’. Among these are Contiental Teves (Automotive Systems) and Pirelli (Tyres).
September is show time in Frankfurt. This year we have just seen the IAA for cars and motorcycles, the 58th such event. Almost 1,200 exhibitors from 43 countries displayed the whole width and breadth of automotive progress on 225,000 square metres of indoor and outdoor exhibition space. The theme of this year’s exhibition, “Auto: Treffpunkt Zukunft” (“Car – Meeting-Place: The Future”) must also be understood as the industry’s programme: Car manufacturers alone offered 51 world premières, eight European and 38 German premières, not counting the numerous innovations of vehicle component suppliers, the motor manufacturers’ development partners. Apart from new production-line cars, futuristic concept cars, motorcycles and special vehicles Frankfurt showed trailers, parts and accessories, tuning products, aids for vehicle maintenance, protective clothing, traffic guidance and information systems. Tyre manufacturers with IAA stands of their own were Michelin, Continental, Dunlop and Pneumant. The second part of the 58th IAA – the commercial vehicle side – will take place from 23rd to 30th September 2000 under the theme “Nutzfahrzeuge: Für alle auf Achse” (“Commercial Vehicles: For Everybody on the Move”) and also be held at Frankfurt/Main. The organisation will also be in the hands of the Association of the Motor Manufacturing Industry (VDA).
In its last issue NEUE REIFENZEITUNG speculated about an agreement between Montupet and Michelin in the area of aluminium cast wheels. The talks seem to be “on hold” for the time being, because at the moment both partners have their hands “full with orders”. Montupet is currently doubling its capacity to 2.5 million cast wheels. Kronprinz, the Michelin subsidiary in Solingen, is able to cast 1.4 million wheels with the equipment already in place. In its search for a strategic alliance partner (without seeking a direct participation) Michelin has now found steel wheel manufacturer Meritor, which has factories in Mexico and Brazil. Meritor is a business division of Rockwell, the large supplier to the automotive industry, and is also known by the trade name Fumagalli. With an annual capacity of about 25 million steel and aluminium wheels Michelin is roughly double the size of Meritor. The strategic benefit for Michelin is not only the geographical location of the two Meritor factories, but above all the close relationship between the supplier Rockwell and Chrysler. The principal reason for the cooperation between M+M, however, was Renault’s decision to produce the Mégane also in South America with the same steel wheels as in Europe, where they are made by Michelin. To comply with local content requirements, the South American Mégane will have Meritor wheels.
Although a joint venture between Continental and Pirelli could make sense in the tyre sector, observers do not believe it. The Italians, in any case, deny it vehemently. While the German group is still recovering from the enormous effort of the Teves acquisition, the Italians are about to concentrate more on entering the real estate business. An extremely nervous reaction came from Pirelli Reifenwerke managers, who do not like such talk in the market, especially since they have enough to do looking after themselves. Sales boss Röske speaks in eloquent terms of the lustre of the Pirelli tyre brand that makes his team’s “eyes shine”. The brand, he says, is stronger than “our customers sometimes want to give us credit for”. In Röske’s opinion Continental may perhaps have tried to throw dust in people’s eyes to divert attention from a potential takeover by Bridgestone. This magazine rather thinks that Conti boss Kessel wants to avert the public gaze from talks with the telephone group Mannesmann, which is possibly ready to part with its automotive division.
Bridgestone/Firestone Europe (BFE) has appointed Mr. Uwe Kaster as General Manager of European OE Sales. He will be based at Bridgestone/Firestone Deutschland. The company says that the appointment has been made in response to its increasing growth with European vehicle producers. Mr. Kaster joins BFE from the Rutgers Automotive Group.
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