Chinese Auto Production Rose by Nearly a Third in 2010
Statistics released by the China Association of Automobile Manufacturers state that the country produced 18,264,700 units in 2010, an increase of 32.44 per cent on 2009.
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UK Scrappage Scheme Yields 372,401 New Car Registrations: SMMT
NewsSociety of Motor Manufacturers and Traders figures state that by 31 March, 372,401 new cars had been registered through the scrappage scheme, accounting for 12.2 per cent of all new car registrations in March. In addition, the scheme accounted for 3.2 per cent of the total van market in March, with 6,577 new LCVs registered through the scheme since it began in May 2009.
ATS Euromaster Offers Free Battery Checks
NewsATS Euromaster are urging motorist to have their batteries checked (free of charge) at their local ATS centre, in readiness for the onset of late autumn and winter. According to the company, the fact that the clocks go back on Sunday 25 October normally heralds the start of car and van batteries being put under increased strain, owing to drivers requiring extended use of their headlights and heating system, whilst the colder temperatures at this time of year reduce battery performance.
KPMG Welcomes “Steady Injection of Government Support”
Company NewsFollowing business secretary, Peter Mandelson’s announcement that the UK government will be extending its car scrappage scheme to February 2010, as well as including van owners in those eligible for scrappage discounts, the auto director at ‘Big Four’ professional services firm, KPMG has said that he welcomes the government’s support for the industry:
Asian Tyre Stock Jumps on US Auto Rebate Extension
Company NewsThe possibility of an extension to the US’s “cash for clunkers” auto rebate scheme has led to a bump in Asian stock prices for shares in Bridgestone, Hankook and others, according to Reuters reports. The US senate is mulling over a plan to offer 200 per cent of the original funding for its car sales booster scheme, since the billion dollar pot quickly evaporated. Purchasers can claim a rebate of up to $4,500 when they trade in old models for new, green alternatives.
UK Scrappage Scheme “May Appeal to 1.5 Million”
Product NewsWith a UK scrappage incentive scheme to help boost the automotive industry to be introduced next month, information and marketing analysts Experian have evaluated its potential impact. Owners of vehicles over ten years old can claim a £2000 cash incentive to trade in their car for a new one. In order to be eligible for the scheme, the driver must have owned the vehicle for at least 12 months. Experian’s analysis of over 34.7 million vehicles currently on the UK roads has found that 7.1 million privately owned used vehicles will be eligible for the scheme. However, the company’s analysis shows that not all the owners of these vehicles would be in a position to take advantage of the scheme as there are number of other factors to consider.
Apollo to Lay Off 1,500
Product NewsThe downturn in the automotive industry has seen Apollo Tyre’s OEM demand drop 43 percent in terms of value during the last financial quarter, and according to company chairman and managing director Onkar S Kanwar, “car sales have plummeted [and] tyre sales have also gone down proportionally.” During the last quarter commercial vehicle tyre sales have also experienced “a serious drop”, he added. In light of this decreased demand for the company’s products, the Hindu Business Line reports that Apollo is considering laying off 1,500 workers.
Depressing Start to 2009 UK Car Market
Product NewsFigures for January UK car sales, released by the SMMT, make gloomy reading; new registrations were 30.9 per cent down to 112,087 units. And the outlook is equally bleak, with the SMMT predicting a decline in 2009 of over 19 per cent to 1.72 million units. This is 410,000 fewer than 2008 and 685,000 units less than 2007.
SMMT chief executive called on the Government to take steps to stimulate demand, saying: “A number of EU member states have launched scrappage incentive schemes, which have the benefit of boosting consumer confidence and delivering significant environmental improvements. The UK motor industry is urging UK Government to introduce a similar scheme and help sustain jobs and businesses throughout the sector.”
No Going Back
Product News“In 2008 the Ultra High Performance tyre market experienced changes unlike any year before it and as a result will never be the same again,” that’s the assessment Sentaida USA general manager Don Mathis recently gave Tyres & Accessories. In other circumstances this may have sounded exaggerated, but with the Bank of England slashing interest rates to their lowest point in the institution’s 315-year history and US interest rates heading even lower, the unprecedented economic conditions seem to suggest the international tyre trade is also entering uncharted territory.
“UHP aftermarket sales have been the main and nearly only shining star in the tyre business for the last eight to 10 years. The margins and growth have surpassed nearly every other segment of the market,” Mathis explained. However, this year has also been unlike any other in the experienced sales manager’s 36 years in the tyre business. He believes the unique combination of surplus capacity in UHP factories mixed with the early year surge in raw material costs, mid-year surge in fuel cost, and the credit crunch halting new car sales and taking aftermarket wheel sales with them means the market has hit a watershed.
No Going Back
Product NewsIn 2008 the Ultra High Performance tyre market experienced changes unlike any year before it; and as a result will, never be the same again, Sentaida USA general manager Don Mathis recently told Tyres & Accessories
“UHP aftermarket sales have been the main and nearly only, shining star in the tyre business for the last eight to 10 years. The margins and growth have surpassed nearly every other segment of the market,” he explained. However, this year has also been unlike any other in Mathis’s 36 years of experience. His thinking is that the unique combination of surplus capacity in UHP factories, the early year surge in the raw material costs, a mid-year surge in fuel cost, and the credit crunch halting new car sales and taking aftermarket wheel sales with them means the market has hit a watershed.
His advice? “Reduce your UHP stock to bare minimum. I think it is really ugly now, and is going to get worse. Clear out old, high priced stock, so money can re-circulate. Take whatever loss there is now. Get it over with, as it will only get worse in 2009. Buy smart for the future with an emphasis on value in the popular passenger car sizes.” For more overview on US market sales see January’s issue of Tyres & Accessories.
Tronchetti Provera – Car Market Not Yet Rock Bottom
Product NewsAccording to Marco Tronchetti Provera, the car market has yet to reach rock bottom. The Pirelli chairman was quoted by Reuters has saying that consumers would most likely wait several months to see if government measures to revive slowing economies proved successful before they considered making a larger purchases, such as a new car.
China Tyre Output Growth Slows
Product NewsChina’s tyre industry, now the world’s largest, is tipped to experience slowing growth in the first half of the year as exports begin feeling the affect of a global economic slowdown. This sober outlook was given by the China Rubber Industry Association, which added that profit margins have been eaten away by raw material costs.
PCL Expands Sales Operation with New Appointments
Product NewsPCL has promoted Gareth McGuigan – who was for three and a half years one of the company’s regional sales managers – to business development manager for the UK and Eire, while Paul Carrington has joined the company in his place, representing Scotland and the north. The company, which specialises in tyre inflation equipment and pneumatic products, has reinforced its sales team in response to increasing demand.
Before joining PCL, McGuigan spent seven years in America on a football scholarship, finally returning to the UK to spend six years in sales management with Enterprise Rent-A-Car and Nissan. Looking forward to his promotion, McGuigan commented: “My goal is to build on the success we’ve had to date on national accounts, providing support to existing customers and distributors, whilst developing new business.”
Pirelli Confirms Higher Targets Despite Weakening Car Sales
Product NewsComments given by Pirelli & C Spa chairman Marco Tronchetti Provera indicate that targets for company’s tyre business remain slightly higher despite declining car sales in Western Europe. Speaking to reporters on June 30, Mr. Tronchetti Provera said Pirelli is “working on growing where there is a sustained demand, to improve the profit mix and to reduce costs. Therefore we believe we can meet our targets.”
Panic in Detroit: 2007 Auto Sales to be Down
Product News(Akron/Tire Review) Industry analysts say that 2007 may end up being the worse ever year for new car sales. September sales, analysts say, are expected to show weak results, due in part of high gas prices, credit troubles and other economic factors, and the final quarter of the year indicates things won’t get better.
Jesse Toprak, chief economist for the auto information site Edmunds.com, predicts Honda Motor Co. will be the only automaker to report an increase in sales, helped by the arrival of the new 2008 Honda Accord. Automakers are scheduled to report September sales Tuesday.
“No one is immune to this general weakness we have in the marketplace,” Jesse Toprak, chief economist for the auto information site Edmunds.com, told the AP. Sales for September are expected to be down as much as 4 per cent vs. September 2006, with Honda expected to be the only automaker to show n increase.
Ford, GM and Chrysler are expected to be down month-over-month. One analyst forecasts an annualised selling rate of 15.9 million vehicles for the year, down from 2006’s 16.6 million vehicles.
