Based in Japan, Bridgestone Corporation is the world’s largest tyre and rubber company.
Bridgestone/Firestone is to triple its investment in South Africa to around 15 million US dollars. Chairman Takashi Wada states that this is part of a drive to build market share and improve exports. There are expectations of increased OE business with Ford, GM, Toyota and BMW. The aim is to make the South African operation the third largest in the Bridgestone portfolio.
The Financial Times has published its list of the world’s 500 largest companies, ranked by market capitalisation. No tyre companies appeared on last year’s list and this year’s includes only one tyre company; Bridgestone. The Japanese manufacturer is listed at number 386, with a market cap of US$ 11.826 billion. It is also ranked the 38th largest company in Japan.
An appeals court in the USA has overturned the decision of a lower court granting class-action status to non-injury lawsuits against Ford and Bridgestone/Firestone over faulty tyres. The court decided that a class action (with all cases decided on the result of a single trial) would be unmanageable because of the large number of claims and the wide geographic spread. Claims affected by the ruling are for financial compensation only and not those alleging personal injury or death. Ford and Bridgestone/Firestone welcomed the decision.
Speaking at a National Manufacturers Association conference in Nashville, John Lampe, chief executive of Bridgestone/Firestone’s US subsidiary, was extremely upbeat about the company’s future. “I’m convinced we have emerged from the recall stronger than ever before” he said, crediting the company’s “making it right” information programme with the restoration of consumer confidence. Analysts say that planned restructuring and cash reserves should be sufficient to deal with any further problems arising from the recall and lead to profitability of all divisions. Lampe added that the company intends to build market share for both Bridgestone and Firestone brands with new products.
NHTSA (National Highway Traffic Safety Administration) has closed an investigation into Firestone’s truck tyres STEELTEX, saying that there is no design- or manufacturing defect. Good news for a change for troubled Bridgestone/Firestone in the USA.
According to reports in the Japanese press, Bridgestone/Firestone has signed a contract with General Motors in the USA to supply tyres as original equipment. The report estimates that the Japanese manufacturer will supply GM with 2.5 million tyres annually for half a million cars and supply could begin this month.
The ten-year old technology and co-operation between Toyo and Continental has ended, nine months ahead of schedule. This follows the formation of a joint venture between Continental and Yokohama to co-operate on technology and tyre production in Japan. Conti is also co-operating with Bridgestone in the development of run-flat tyres. The ending of the Conti/Toyo agreement was brought forward at the request of the German manufacturer, according to Toyo.
The latest J.D. Power customer survey concerns heavy truck tyres as original equipment. Respondents rated tyres for safety, durability, tread life and overall value. Michelin came out on top, closely followed by Bridgestone, although Bridgestone customers reported the fewest problems per 100 tyres. According to the report, the biggest problems associated with tyres are excessive or uneven tread wear and blowouts.
For the fourth year running, Michelin ranks highest in the UK OE tyre satisfaction study, receiving the highest ratings for durability; the factor rated as most important by UK consumers. In second place were Pirelli and Kumho, with the latter scoring well because owners experience few problems with the brand. The survey questions over 3,000 UK motorists in their first year of car ownership, regarding tyre quality, performance and brand image. Following the top three brands, three further brands (Bridgestone, Dunlop and Goodyear) al scored the same. Bridgestone received highest marks in the study for traction/safety, while Goodyear and Pirelli tied for top spot in tyre design.
Based in Rio Saliceto, about 20 miles west of Modena, Italy, Butler Engineering & Marketing originated in 1998. It started as an entrepreneurial venture by a few people with a common vision to change the way tyres were fitted, bringing into line the technical developments of the tyre, wheel and automotive industries. The first four years were dedicated to product development and contacts with the main customers were established. Then, in 1993 and 1994 the network of agents was brought up to a satisfactory level, according to the company’s potential in terms of manufacturing capability. It was in late 1994 that the growth boom started. The company now employs 70 professionals. Turnover in 1995 doubled, while in 1996 another increase of approximately 50% was achieved. Since then a steady increase in turnover and output has occurred. Butler specialises in manufacturing tyre changers, which are very original and innovative in terms of design, construction and operation. All Butler tyre changers can easily be identified because of their special features; in fact, they have a unique ergonomical design and are almost all powered by compressed air. Power and comfortable controls allow an effortless and effective operation, even with the toughest and most delicate tyre-rim combinations. All parts of the machine touching the wheel or tyre are made of plastic or rubber, to avoid any kind of damage. For instance, an exclusive and patented mount/demount head, made from synthetic material, is always in touch with the rim edge, thus reducing considerably the stress generated during a mounting or demounting operation. The Butler range of equipment also includes a complete series of electronic wheel balancers, made according to the latest technology, eg the ADI (Automatic Data Input). Butler has established a mutual cooperation with the R&D departments of important car, tyre and wheel manufacturers, which are using Butler tyre changers to test the mountability of the most advanced tyre/rim combinations. Approvals or agreements have been signed with Mercedes, Porsche, Bridgestone/Firestone, Dunlop, Continental and others. BBS and Lorinser are promoting the Butler Airdraulic to all their wheel dealers. At the assembly plants of Ferrari, Porsche, M5, Audi 8, Fiat and others, the first equipment tyres are mounted with Butler Airdraulic tyre changers. Technical improvements are not focused just on machines, but also on tools like the so-called ‘HM’ (Half Moon) tyre bead lever, which dramatically improves the operator’s comfort and efficiency. A consumer’s video has been produced to increase the knowledge and skill of operators on handling the toughest and most delicate low profile tyres and aluminium rims with the Butler Airdraulic tyre changer. “The Butler Passport to Higher Performance” is an important contribution to spreading knowledge on how to handle rims and tyres. It is a manual containing general and specific information about rims, tyres and the proper way to handle them. Also it includes a section related to the use of Butler tyre changers. This manual is available on the Butler home page www.butler.it where other interesting information can be found.
After Michelin and Bridgestone, Gummiwerke Fulda is the latest company to announce that it will not be attending the Reifen 2002 show. Peter Hülzer, managing director of the German dealer association BRV, was extremely disappointed, saying that MD Hoffmann had told him two weeks ago that Gummiwerke Fulda would definitely participate. It seems to be unavoidable now that the Association, the dealers and manufacturers will come together to discuss the future of one of the best tyre shows in the world. For Reifen 2002 the impact seems to be limited, as according to press comments from the organisers, the show is more or less sold out.
Some weeks ago, Akron Beacon Journal business columnist Diane Evans stressed the point that Goodyear bonds have become “junk bonds”. Who could ever have imagined that, she asked? In a letter to the editor, Gibara said that Evans seemed to criticise him constantly and, more importantly, not give the readers the full facts, which forced him to answer back in the name of all the good Goodyear associates. The issue rumbles on – the supervisory board has given Gibara a bonus of US$ 1.25 million, which Evans believes is not a good decision. Furthermore, it has become obvious that a power struggle is going on within the group, between the two highest-ranking managers.
Michelin consolidated net sales for 2001 amounted to 15.775 bn Euro (+2.5 per cent over 2000). The operating profit reached 1.04 bn Euro (-10.5 per cent) and net profit was 314 million Euro (-28.4 per cent). With 6.6 per cent operating profit as a percentage of sales in a very difficult and competitive economic environment, Michelin easily outperformed its two biggest competitors Bridgestone and Goodyear. Bridgestone is still suffering from the consequences of the Firestone recall and Goodyear has reported losses in 2001. In a press conference in Paris Michelin boss Edouard Michelin spoke about the previous business year and Chief Financial Officer Michel Rollier gave detailed figures – also for the various divisions. It was the first time that Michelin has presented the company’s figures in such a major press conference, which was followed by two others in London and New York.
A poll of analysts suggests that Bridgestone’s net profit for 2002 will treble. The forecast is for a net profit of 57.7 billion Yen (500.5 m Euro), compared with the 2001 figure of 17.7 billion Yen (152.3 m Euro). Analysts believe that the corporation is slowly putting the Firestone debacle behind it and there are hopes of a reconciliation with Ford. Other factors causing optimism include the weak Yen and an increase in Bridgestone’s business with GM.
Bridgestone and Toyo have both announced plans to boost output in China, destined for the Chinese domestic market. Bridgestone will raise production in total by 40%, with its Tianjin factory producing 13,000 tyres per day, an increase of 30%. Meanwhile, Toyo is looking at methods of increasing production at Jiangsu by 60%.
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