The tyre business along with the rest of the automotive industry was hit hard by the effects of coronavirus. This tag brings you the latest news as it happens.
Bridgestone’s key financial metrics show the suffering of the world’s number one tyre manufacturer from the effects of the Covid pandemic. Sales fell by 32.4 per cent worldwide in the second quarter. The group also slipped into the red, reporting a return on sales of -0.3 per cent and a deficit of 41.5 billion Japanese […]
The National Body Repair Association, the trade association for the UK’s vehicle body repair shops, calls on the government to extend the Coronavirus Job Retention Scheme (CJRS). Despite bodyshops being permitted to remain open during the lockdown, as they provided an essential service, the 80 per cent reduction in accident repair claims meant almost all had to close and place their staff on furlough.
The window to attract crucial funding from the Government-supported Coronavirus Business Interruption Loan Scheme (CBILS) is closing rapidly, warns asset finance specialists PVS Finance.
Businesses in the automotive sector have until the end of September to get grants agreed, worth up to 25 per cent of turnover. However, mistakes in the application process can hamper the progress of applications, with often incomplete or incorrect details resulting in a rejection.
After reopening its Stoke-on-Trent retreading factory following its closure for a scheduled maintenance break lengthened by the Coronavirus crisis, Tyres & Accessories spoke to Michelin’s UK factory manager Francois Levert about recent developments. The mileage trucks covered during the lockdown did not plummet as much as that of cars, but there have certainly been effects on demand. Levert confirmed at the end of June that the Michelin factory in Stoke-on-Trent is “operational”. A lot of work had previously been invested to ensure “that we can work as safely and efficiently as possible. We are now at a normal production level, which is very gratifying.”
This article appears in full in the September edition of Tyres & Accessories’ Retreading Special supplement. Subscribers can read the supplement online here. Not yet a subscriber? You can change that here.
UK-EU negotiations for a post-Brexit trade deal resume for their seventh round in Brussels today (18 August). David Leggett, automotive analyst at data and analytics company GlobalData, stresses the importance of a trade deal to the UK’s automotive industry.
Schaeffler’s technical manager Alistair Mason has addressed the practical health & safety issues of getting back to work, as well as several technical matters that are becoming increasingly relevant to workshops, and how the company’s Repxperts are helping technicians deal with these challenges.
Learn more about how garages are protecting staff and customers in our ‘Kick-starting your tyre business‘ webinar.
The UK’s new heavy goods vehicle (HGV) market declined by 73.4 per cent year-on-year in the second quarter of 2020. The Society of Motor Manufacturers and Traders (SMMT) reports that 4,151 units were registered between 1 March and 30 June 2020. Just 328 buses and coaches joined UK roads during the quarter.
Virtually every day reveals some new effect of COVID-19 on everyday life and on the automotive and associated industries. The latest gloomy news comes from the Department for Education, which has focussed the spotlight on the impact of the pandemic on apprentice recruitment. And the automotive sector appears to be one of the hardest hit. Across all sectors, apprenticeship starts in June 2020 fell by 57 per cent, compared to the same time period in 2019.
Workers Kumho Tire’s Macon, Georgia factory have voted to join the United Steelworkers (USW) union after the final completion of an election last Autumn. According to the USW, workers sought representation to fight “low wages, hazardous working conditions and abusive treatment at Kumho, which ruthlessly harassed and bullied union supporters in an attempt to derail the organizing campaign”.
Scope Ratings GmbH is predicting a slump in the order of 15-20 per cent in the European automotive market this year. Sales in Western Europe are among the worst hit, with a predicted 21 per cent fall in light vehicle demand. Having said that, the European credit rating agency says that the region’s car manufacturers have proved surprisingly resilient.
The UK Government recently fast-tracked a permit to allow electric scooter rentals on public roads. The move forms part of a broader investigation into greener travel and overcrowding on public transport as the COVID-19 pandemic rages, according to GlobalData.
If there is anything positive to come out of the coronavirus pandemic, it is that the vast majority of the public are acutely aware of the importance of personal hygiene and cleanliness; particularly when it comes to hand sanitisation. It is virtually impossible nowadays to enter any building without being urged to take advantage of the ubiquitous hand sprays on display.
Nokian Tyres has reported second quarter 2020 net sales of 270.7 million euros. In the comparative period 2019, this figure was 415.7 million euros. Therefore, the Finnish company’s second quarter net sales were 30 per cent lower than this time last year.
Cooper Tire & Rubber Company reported a second quarter 2020 net loss of US$6 million on 3 August 2020 compared with net income of $9 million in the same period last year. Net sales decreased 26.9 per cent to $496 million. Operating profit was $5 million, or 1.1 per cent of net sales, compared to operating profit of $32 million (4.7 per cent of net sales) in 2019.
Goodyear Tire & Rubber reported a Q2 2020 net loss of $696 million ($2.97 per share) compared to net income of $54 million ($0.23 per share) a year ago in financial results released 31 July 2020. Goodyear’s second quarter 2020 sales were $2.1 billion, down 41 per cent compared with a year ago. According to the company, the decline was driven by “lower industry volume and reduced sales from other tyre-related businesses.” However, there are signs that demand is improving.
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Michelin
Schaeffler
Stagecoach Group plc
IMI
Nokian Tyres
Goodyear