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.
Maxxis India has announced a partial resumption of manufacturing operations at its Sanand, Gujarat factory albeit with reduced workforce numbers. Maxxis India had shut the operation on 23 March 2020 for a period of 42 days, following government calls for a complete lockdown in order to combat the coronavirus.
Ring Automotive has taken the appropriate steps to keep the supply chain moving safely and securely and has now fully opened its warehouse with greater capacity than before to continue to support customers, the transport industry and key workers.
Euro Car Parts has created a new product bundle to help garages access essential cleaning equipment and PPE. Garages can buy a ‘Back to Work Pack’ complete with a 500ml antibacterial hand sanitising gel, a 500ml surface disinfectant spray, 25 pairs of gloves, 25 large, heavy duty refuse bags and six 2-ply blue rolls.
On the ninth consecutive week of lockdown in the UK, two thirds of British workshops were open, according to the GiPA garage survey. This average includes franchised dealers, independent motor traders and tyre dealers, as well as national chains. Watch the Tyrepress webinar, ‘Kick-starting your tyre business’ for more information and advice on how different dealer groups have tackled lockdown and reopening.
A car scrappage scheme to boost UK vehicle sales was reported to be unlikely this week, quelling hopes of a subsidised shift towards electric cars. However, according to Calum MacRae, automotive analyst at data and analytics company GlobalData, such a move would benefit the country’s economy. “Just a few days ago, it seemed that a £6,000 new car purchase incentive scheme was close to being signed-off, but it looks like the Treasury is now considering a wider-ranging fiscal stimulus package that will forego specific incentives for the automotive sector.
On the morning of 10 June 2020, well-respected market analysts GfK hosted an webinar for north of 170 European tyre executives. Overall, the “Global Car Tyre Market Overview” presentation concluded that, while there are many variables and unknowns, retail tyre demand in 2020 market is likely to be down 20-30 per cent compared with 2019.
Four wheel alignment equipment supplier, Absolute Alignment says its May sales have “matched pre-lockdown figures in March.” The company has adapted its work practices to protect customers and staff and adhere to government pandemic guidelines. Social distancing measures are followed during every installation and each training session for workshop personnel. The business has also turned to online demonstrations.
Goodyear has estimated that it will register a 50 per cent drop in quarter two tyre sales versus 2019. The US manufacturer reported the estimate in an SEC stock exchange filing. It said that global Q2 sales are set to be 18.7 million in 2020, compared to 37.4 million in the same period in 2019.
On 19 May battery manufacturer Exide Technologies entered chapter 11 bankruptcy protection, announcing “a comprehensive strategy to best position its businesses in North America, EMEA, and Asia-Pacific to benefit its employees, customers, suppliers, and other stakeholders across the globe.” In short, the strategy puts the Exide’s US business in chapter 11 and sells the Europe Middle East and Africa (EMEA) to the firm’s long-term lenders.
For the three national markets of France, Italy and Spain, combined new light vehicle sales fell by 55 per cent on last year to 268,000 in May, which compares with a 75 per cent drop in March and a 93 per cent decline in April. This represents a slightly better scenario than had been anticipated, as Calum MacRae, automotive analyst at GlobalData, explains: “After the seized up and locked down markets of March and April, this is a welcome sign of life in markets that were the first in Europe to be engulfed by the COVID-19 outbreak.
PR agency, Impression, has donated much-needed funds and personal protective equipment (PPE) to the Bromsgrove Anglican Youth Project, which supports engagement with young people during the coronavirus pandemic. The funds will go towards ensuring youth workers, working alongside Police and other agencies, are able to go out on to the streets securely and the PPE will assist them with social distancing and staying safe.
France recently announced plans to inject more than €8bn into its automotive sector, a measure that Calum MacRae, automotive analyst at GlobalData, believes should be considered across Western Europe. The analyst has forecast that the region will “bear the brunt of a global industry that faces a near 20 per cent fall in volume in 2020 due to the impact of COVID-19.” While it forecasts global industry to lose “nearly 16 million sales in 2020 compared with 2019, West Europe alone will account for more than a quarter of the decline.”
The National Franchised Dealers Association (NFDA) is pleased that car showrooms can reopen from today (1st June) in England if they meet the COVID-19 guidelines to protect staff and customers. Franchised dealers have been working hard to prepare their premises in line with the Government and industry guidelines to ensure the safety of staff and customers when reopening.
Autogem has created a triple-layer, reusable anti-bacterial facemask. The new product has been added to the TPMS and workshop consumables supplier in response to the needs of customers during the COVID-19 outbreak. The ‘gemCare’ masks, which are non-medical grade and will therefore not affect the supply chain to the NHS, are designed by medical professionals. Autogem added that the masks are intended to complement other protective measures, such as washing hands and maintaining social distancing.
Cooper has begun the process of restarting its tyre manufacturing plant in El Salto, Mexico. The manufacturer said it is restarting production on a limited basis today. It states that it has “put in place a comprehensive set of procedures that include required employee health disclosures, increased cleaning and disinfecting of facilities and equipment, social distancing and physical barriers, visitor restrictions, and other measures.” These measures are aligned with the company’s “first priority of employee health and safety,” it added.
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Maxxis
Ring Automotive
ECP
GiPA
GfK
Absolute Alignment
Exide Technologies
Impression
NFDA
Autogem