According to information from our sister publication in Germany that has since been confirmed by Michelin, yesterday the tyre maker informed employees that it has initiated talks with the works councils and employee unions at its sites in Karlsruhe, Trier and Homburg. Whether Michelin intends to streamline its operations at these locations or close them entirely is not yet known.
Despite its turnover increasing 4.6 per cent to more than 62 million euros in 2022 – a new record for the company – tyre recycler Genan reports that decreasing steel prices and significantly higher energy and freight costs more than halved its year-on-year earnings to less than 1.5 million euros. In response, the company is now speeding up its ongoing work to invest in renewable energy sources.
Following Prime Minster Rishi Sunak’s Cabinet reshuffle, on Wednesday 26 October, NFDA has written to the new Secretary of States for key Cabinet positions, highlighting the principal challenges the automotive industry is currently facing. Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA) which represents car and commercial retailers in the UK commented: “NFDA is the leading figure for automotive retailers in the UK and it is important we maintain our close relationship with Government in order to effectively voice the issues affecting our members. Reaching out to Government’s new ministers, highlighting the key issues currently impacting our sector, will give us a head start in addressing these issues and levelling up our industry.”
The National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle dealers in the UK, has reacted to the Autumn Budget and Spending Review 2022, details of which were outlined in Parliament earlier today (23/9/22). Sue Robinson, NFDA chief executive, commented on the announcements made today by the Chancellor regarding National Insurance contributions, Corporation Tax, the Energy Bill Relief Scheme, business rates, and infrastructure spending.
In light of strongly rising energy prices in Europe, chemical firm and synthetic rubber manufacturer Synthos has announced that it can no longer produce Emulsion-SBR (ESBR) at full capacity. It will thus reduce ESBR output by approximately 30%, equivalent to around 100,000 MTPA, effective immediately.
Gone are the days of stable pricing for UK manufacturing as the cost of energy and raw materials continues to fluctuate wildly, with the underlying trend being relentlessly upwards. Like most manufacturers, the Klarius Group of Companies (including Klarius, Emissco and KMT) has absorbed increased price pressures wherever possible, offering customers a degree of product price stability. Tackling monthly and even fortnightly supplier price changes, usually with only a few days’ notice, is no mean feat. Now as energy and raw material prices are set to reach record levels, the burden will be felt throughout the supply chain.
The National Franchised Dealers Association has written to the Chancellor of the Exchequer, Rt Hon Nadhim Zahawi MP, urging support to mitigate the impact on UK automotive businesses of spiralling energy costs. Bills for auto dealers are expected to have risen 250 per cent by October. 94 per cent of the association’s members said the energy crisis will have a significant and detrimental impact on their business.
After an April to June period punctuated by negative EBIT and a net loss, tyre maker and automotive components supplier Continental says it is “looking ahead to the second half of the year with optimism.” It is also maintaining its full-year outlook despite a current headwind that chief financial officer Katja Dürrfeld describes as being “rather like a hurricane.”
Research from Bridgestone and Webfleet Solutions suggests that high energy prices may dampen fleet demand for electric vehicles. Upon asking 300 fleet decision-makers, 53 per cent responded that they expect this development even though the mobility solutions specialists calculate that going electric will save money over a vehicle’s entire lifespan.
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