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.
Italy’s Prime Minister announced last week that non-essential production within the country must stop in order to combat the coronavirus pandemic. Marangoni Retreading Systems has asked the government to clarify whether the transportation sector counts as an essential service under the new rules, but at the same time has taken steps to ensure its ability to continue meeting demand should production at its Ferentino cease.
Michelin’s tyre plant in Dundee, Scotland has produced its last tyre. Although the facility wasn’t scheduled to close until mid-year, Michelin now says it won’t resume operations after the coronavirus crisis – indeed, it considers doing so “unviable and unwise”. The decision has been taken in agreement with the Unite union, and the company will pay plant workers all wages they’re entitled to through to the planned closure date.
Sumitomo Rubber Industries, the manufacturer of the global Falken tyre brand has temporarily shut down its factory in South Africa on government orders. All of its other tyre manufacturing facilities are currently operational, though staff at the Falken Tyre Europe headquarters in Germany are working remotely where possible, or following social distancing guidelines.
Goodwood took the decision to postpone the Festival of Speed until later in 2020 on 26 March, following advice received from the UK government and Public Health England. It was scheduled for 9-12 July. The organiser said that it is currently exploring potential alternative dates for late summer or early autumn, with tickets remaining valid for the new date. Several key tyre companies will await developments with interest, as Goodwood events are often employed as a platform for UK UHP and competition tyre marketing.
Tokyo has experienced more than its fair share of misfortune when it comes to hosting the Olympic Games. Confirmation came this week that, for the second time in modern Olympic history, the event wouldn’t take place as scheduled in the Japanese capital. The Games of the XXXII Olympiad are now expected to take place next year.
Employee cooperation negotiations concerning Nokian Tyres’ workforce in Finland have concluded. The outcome of these negotiations is that all 1,630 employees of Nokian Tyres plc, Nokian Heavy Tyres Ltd, Vianor Holding Oy and Vianor Oy will be temporarily laid off. The length of time that each employee will be laid off depends upon their function within the company, however Nokian says nobody will be laid off for more than 90 days this year or, in the case of Vianor Oy, between now and February 2021.
Due to the COVID-19 outbreak and the uncertainty it has created within the automotive and tyre market, the Board of Directors of Nokian Tyres plc has decided to withdraw the company’s financial guidance for 2020 that it published on 4 February 2020. Due to the prevailing uncertainties, the Board is not in a position to give a new guidance.
With the Tire Cologne Show in Germany already cancelled due to the Coronavirus pandemic, the UK and European tyre markets are facing an unprecedented trading period. However, according to SD International, digital communication is now proving to be a valuable lifeline to keep the industry moving until the market is able to resume normal trading procedures. With this in mind, SD-International is continuing to promote its three private brands Zeta, Pace and Toledo “in support of the tyre trade”.
Next week it’ll be a year since Shandong Linglong Tyre Co., Ltd. officially launched its project to build a new tyre factory in Serbia. Today the tyre maker is working with its new host country in a way unimaginable 12 months ago. It donated 300,000 disposable surgical masks, 2,000 sets of medical protective clothing, and 10,000 COVID-19 antibody test kits to the Serbian government yesterday via the country’s embassy in China.
As workshops have a vital role to ensure the country keeps moving during this challenging period, they are one of the few businesses officially allowed to stay open amidst the COVID-19 outbreak. To show its support for the important part they play, First Line Ltd is offering advice as to how technicians can stay safe, as well as standing alongside them to continue to supply the parts they need to effectively continue to run their businesses.
The Independent Automotive Aftermarket Federation has gained clarification from government that businesses in the automotive aftermarket supplying garages, namely motor factors and suppliers, can remain open during the Covid-19 lockdown. Garages are exempt from the enforced closure of retailers, but motor factors can stay open in order to supply workshops who continue to support logistics providers, local councils, blue light services and key workers.
Cooper Tire & Rubber Company has confirmed the temporary shutdown of its tyre plants in Europe. Production at the facilities in Melksham, England and Kruševac, Serbia is being phased down this week. Both plants are expected to remain closed for at least three weeks.
Titan International, Inc., manufacturer of the Titan tyre brands as well as the Goodyear agricultural tyre lines sold in the UK, Europe and North America, says its plants are operating as normal during the COVID-19 crisis. The company describes its decision to maintain production as a “commitment to keeping its US manufacturing facilities operating as normal in order to support the food and agriculture industry.”
Due to the impacts of COVID-19, Nokian Tyres will temporarily cease production at its factories in the USA and Russia. The plant in Dayton, USA will close on Friday for a minimum of two weeks. At Nokian Tyres’ Russian factory, the production shutdown will start on Monday, 30 March and will last for a week. Nokian Tyres will continue supplying customers through its regional warehouses.
Apollo Tyres shared last Friday that its senior management would take a pay cut in response to market pressures related to the coronavirus pandemic, and yesterday the team at JK Tyre & Industries announced similar measures.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.