Michelin is expected to record a “stable” operating margin for 2005 when it announces its full-year results on 14 February. The price rises implemented by the tyre manufacturer have reportedly made it possible to compensate for high raw material prices. A consensus of the estimates of 15 analysts, suggests that the company will publish a 2005 operating margin of 8.7 per cent, according to Reuters.
2005 saw the UK car market record the sharpest decline amongst the EU15 countries. While registrations were strong in December (158.866 units against 144,353 in December 2004), the 8.7 per cent increase disguised what was an undoubtedly tough year.
Germany, Europe’s largest car market, showed the opposite trend, recording an 8.8 per cent dip in December but 1.6 per cent growth over the year. 3,319, 825 new cars were registered in Germany in 2005. France showed the strongest growth in Europe with annual registrations increasing 2.7 per cent to 2,067,818 in 2005, despite slowing 1.4 per cent in December.
KYB is to supply shock absorbers as original equipment for the new Lexus GS luxury sport saloon.
Hajime Sato, MD of KYB Europe, described the agreement with Lexus as “great news” and it is the latest in a series of global OE contracts with manufacturers such as Audi-VW group, Daimler-Chrysler, Ford, General Motors, Mitsubishi, Nissan, PSA Peugeot Citroen, Renault and Toyota.
Mike Wise has been appointed Kwik-Fit Fleet’s first dedicated European fleet chief as the company plans to accelerate its European expansion. This will involve opening more centres and identifying pan-European fleets, totalling two million vehicles in all, with who the company plans to expand and develop its business partnerships.
Michelin is recalling its Michelin Pilot Sport Extra Load tyres in size 255/35 ZR 20 97Y. According to an official statement, “this decision results from the analysis of customer returns in Europe, which has revealed an anomaly that in certain cases may lead to a rapid loss of air pressure in the tyre. This situation constitutes a potential safety risk.” The manufacturer says it will therefore exchange all of the tyres in question.
As a precautionary measure Michelin has decided to exchange all the subject tyres. UK readers wishing to query Michelin further can phone the following number: 0800 056 7200. Callers in the Republic of Ireland should dial 01 459 5955.
Effective February 2006, Kraiburg Austria will be increasing its prices for quality tyre retreading material by five per cent in Central Europe. This is down to continuing rising energy and transport costs as well as the drastic rise in the price of raw materials with, for example, natural rubber currently costing around 40 per cent more than in August 2004.
Remy Automotive has introduced a new brake caliper catalogue which it claims offers the best range coverage in the UK market. The catalogue adds a further 206 part references to the range, increasing the overall offering to more than 2,500 part numbers.
Remy Automotive is one of the largest brake caliper remanufacturers in Europe and claims a 15 per cent share of the UK brake caliper market. Growth of remanufactured callipers is estimated at five per cent a year and they account for 75 per cent of the UK market, compared with 40 per cent a decade ago.
Bridgestone is planning to open a European distribution centre in the Czech Republic in July 2006, Gert Meylemans, senior manager corporate PR at Bridgestone Europe NV/SA told Czech Business Weekly.
Hayes Lemmerz International, Inc today reported that sales for the fiscal third quarter ended 31 October 2005, rose 11 per cent to $604.0 million from $545.9 million for the same period last year. However Hayes Lemmerz reported net losses of $13.3 million, compared with $5.3 million in the same period last year, and issued revised guidance for 2005.
(Akron/Tire Review) Groupe Michelin Managing General Partner Edouard Michelin, on a visit to the US, said the company will pursue cost reduction gains by replacing only a portion of workers who will retire in the next few years. This includes Michelin operations in the U.S. and Europe. AFX News reported that Michelin, who visited his company’s North American operations, said: “There is no magic formula” for the reductions, and that decisions on whether to replace certain retiring workers would be made on a case-by-case basis.
Bridgestone has announced the results of its pan-European competition to win an Actros truck. The competition, which attracted entries from hundreds of feet operators from 14 countries, was won by German logistics company Aug. W. Bode GmbH, based at Bad Salzuflen.
Michelin does not envisage raising prices in Europe at the moment, despite price increases in North America and Japan. “Our philosophy has not changed, we reflect the rise in the prices of the raw materials in our selling prices,” Reuters quoted one Michelin spokesperson as saying. Michelin’s last price increase in Europe was a year ago.
Goodyear Dunlop is planning a “significant investment programme” for its Hi-Q chain, managing director Dick Johnson has revealed. “The Hi-Q network is an asset and the majority of stores will remain under Goodyear Dunlop ownership. We are going to invest in people, training, marketing and systems and develop a new franchise programme that will complement our company owned stores to create a strong nationwide network,” he explained.
(Akron/Tire Review) No sooner had the ink dried on the merger of Galaxy Tire & Wheel and Dynamic Tire Corp than the combined company – GPX International Tire Corp. – has sold a share of the company to private equity firm Sterling Investment Partners for a reported $41 million.
Swedish company Hedbergs has been in the tyre business for over 50 years and started retreading tyres as early as 1958. In 2001 the company decided to switch to the Bandag retreading process.
Demand for Bandag retreads grew rapidly from the outset, propelling production at the Hedbergs shop to maximum capacity in just three and a half years. One of the reasons for this was the opening of the Öresund Bridge between Copenhagen and Malmö, in 2000.
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