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 has been marketing its passenger car tyres in Germany directly to end users for fitting by a listed partner for roughly six months. And for years before that there has been a noticeable trend towards online selling. Following on from our online preview article, Tyres & Accessories’ German group publication Neue Reifenzeitung interviewed David Anckaert, vice president Commercial Europe at The Goodyear Tire & Rubber Company and began by asking: is it too early to draw initial conclusions? And where’s next?
Bridgestone EMIA (Europe Middle East India and Africa) has announced a price increase of up to 4 per cent.
Michelin introduced the first CrossClimate tyre in 2015 in a move that saw the manufacturer shift from its long-held position of being broadly opposed to all-season tyres on the basis that best seasonal performance is achieved by either summer or winter tyres. However, arguing that the CrossClimate is a summer tyre with year-round capabilities, Michelin pioneered a new category of tyre. The initial CrossClimate was followed by the CrossClimate + and the CrossClimate SUV variants 2017 and now there is the news that a completely revised version – the CrossClimate 2 – is on its way.
Continental has reported second quarter 2020 consolidated group sales of 6.620 billion euros. This equates to -39.8 per cent drop year-on-year. Pre-tax profits (EBIT) came in at -9.6 per cent of sales (-636 million euros). However, sales in the Rubber Technologies division, which includes tyres, were 2.962 billion euros and the adjusted EBIT margin was 1.2 per cent (around 36 million euros). Thus, Continental’s tyre business has managed to remain profitable despite the obvious pressures of the coronavirus context.
Apollo Tyres is aiming for leadership in the premium two-wheeler segment in India with the inauguration of a dedicated two-wheel cross-ply and tyre manufacturing operation. India is the largest two-wheeler market in the world, and still has a headroom for further growth. In light of the Covid-19 pandemic, demand has increased as people move away from shared/public transport and gradually moving to own a personal vehicle. However, while India is at the forefront for Apollo’s venture into the two-wheel segment, the company is also hinting that it plans to export two-wheel tyres to Europe and North America.
As we reported last month, Australian tyre recycler Green Distillation Technologies (GDT) believes the time is right for them to expand internationally. Now the company is highlighting its intentions to move into the European market. Tyres & Accessories understands that Greece and Italy are at the top of the list, but talks are also ongoing in the UK.
The Goodyear Tire & Rubber Company has appointed ex-Brisa and Bridgestone executive Hakan Bayman as president of Goodyear’s consumer tyre business in Europe, effective 1 July 2020. Bayman will be based in Brussels and report directly to Chris Delaney, president Goodyear EMEA.
ZC Rubber is launching its second generation of Westlake WSA2LT, WAS2, WDA2LT, WDA2, WSM2 and WDM2 all-steel truck and light truck tyres into the European market effective 1 July 2020. According to the company, the range is designed for “European fleets who seek both tyre performance and cost saving”.
Following ACEA’s latest assessment that new car sales in the European Union will fall by 25 per cent in 2020, GlobalData’s automotive analyst David Leggett, says: “In May, the European passenger car market (EU+EFTA+UK) suffered another sharp drop, with new registrations falling by 57.2 per cent on last year.
The European Automobile Manufacturers’ Association (ACEA) predists that the market for cars in Europe will be down a quarter in 2020. The association revised its forecast radically due to the economic challenges the COVID-19 pandemic poses to the auto industry. Around 3 million fewer cars will be sold in 2020 according to the forecast. EU sales numbered 12.8 million in 2019, but are now forecast to be as low as 9.6 million in 2020.
Responding to the 52.3 per cent fall in May European car registrations, the NFDA says UK showrooms are reporting “positive trading” in the two weeks since reopening. The latest figures from the European Automobile Manufacturers’ Association (ACEA) show that the decline has become less severe. In April, sales had declined by 76.3 per cent.
European passenger car registrations plummeted 52.3 per cent during May, according to the latest ACEA figures. Although COVID-19 lockdown measures were eased in many countries last month, the number of new cars sold across the European Union fell from 1,217,259 units in May 2019 to 581,161 passenger cars in May of this year.
Following news that Exide Technologies entered Chapter 11 bankruptcy protection on 19 May 2020, Exide has been bought by long-term lenders who have injected cash, but remains up for sale until the end of July. Specifically, the new owners of Exide EMEA and Asia-Pacific are subject to conditions outlined in the transaction document to “maintain continued employment of the company’s workforce in these regions”. For example, as part of the agreement, the ad hoc lender group has provided additional liquidity of up to $75 million. The agreement also includes a “go-shop” period with a bid submission deadline and auction to be held in early July 2020.
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.
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Goodyear
Bridgestone
Michelin
Marcus Prell, Continental AG
Apollo
Green Distillation Technologies
ZC Rubber
ACEA
ACEA
Exide Technologies