Industry Media sources, including European Rubber Journal and Tire Business, are reporting that TW-Fitting, a Group Michelin and Continental AG joint venture, will set up a factory to supply Mercedes-Benz America with mounted tyre/wheel assemblies.
Michelin is to invest a further £14.5 million into its Northern Ireland manufacturing facility. According to the Northern Ireland News Letter the company intends to make its Ballymena site the largest truck and bus tyre plant in the UK.
Titan International has reported positive first half results, with net sales of $288.2 million, (£158 million) from $260.0 million compared with 2003. Second quarter net sales increased by 29 per cent, reaching $121.2 million, (£66 million) from the previous year’s figure of $94.0 million. The net sales, for the period ending 30 June, were adjusted to reflect the sale of Titan Europe, which brought sales of $131.0 million.
A net income of $5.6 million (£3 million) was recorded for the second quarter, resulting in a $10.9 million (£6 million) year-to-date sum for 2004. The figure compared favourably to the previous year’s net losses of $(8.2) million for the second quarter and $(14.1) million for the first six months. Diluted earnings per share were $.32 for the second quarter, compared to a loss per share of $(.39) for the corresponding quarter of 2003, resulting in a $.71 increase quarter-over-quarter. Year-to-date earnings per share leveled at $.57 measured against a $(.67) loss per share in the first half of 2003.
A number of news sources are reporting that Hankook Tire is considering sites in Eastern Europe for a possible new construction plant.
The Korean Maeil Business Newspaper identified Poland as one of the front-runners, for the $1 billion project. The claim that the report is supported by the company’s president, Cho Choong Hwana, adds credence to the story.
Meanwhile, the Warsaw Business Journal reports that it will take an estimated two to three years before construction of the plant is finished. The journal also suggests that Hyundai’s recent decision to open a plant in Slovakia could have been a motivating factor behind the move.
Continental AG have released results which show substantially growth for the second consecutive quarter.
The international automotive supplier increased its first-half consolidated sales 9.0 percent from 5,646.8 million euros (£3724.18) to 6,157.4 million euros (£4060.93), including the costs of exchange rates and consolidation charges.
Goodyear Dunlop Tires Europe has completed its acquisition of the Dackia tyre retail group, in Sweden.
Honeywell Friction Materials has completed its new management team by announcing Scott Buckhout as vice president and general manager, Europe region and Eric Rozier as vice president and general manager, Americas region. The appointments come just two months after the company named Laura Ulz president.
The Alcoa Foundation has announced that it has awarded $117,000 (£63,000) in grants, to universities in Hungary. The foundation hopes the donations, made in light of the country’s recent accession into the European Union, will aid the country’s preparations to develop the next generation of business leaders.
The UK automotive industry wants a level standard across Europe for emissions trading, the House of Lords European Union Select Committee heard last week.
SMMT representatives presented evidence to the Committee, explaining that many UK plants have already fitted advanced emission control kits and work to a higher standard than some of their continental counterparts. A further concern of the motor manufacturers society was that in some countries, automotive plants seem to be able to avoid the need to trade emissions altogether.
Bridgestone Corporation is set to make a nine per cent gain in net profit to $891.6 million (£490.3 million) by the end of this fiscal year, according to a Japanese newspaper report.
Michelin & Cie., one of Europe’s largest tyre makers, is set to open a tyre plant in Russia on 7 July. Both Interfax and The Moscow Times reported the information, citing an official at the company’s press service in Paris, who stated that the plant, based in the Moscow region, will produce 2 million car tyres a year. The company intends to expand this capacity to 6.5 million next year. The press service source said Michelin is investing $160 million in the plant.
Michelin, based in Clermont-Ferrand, France, planned to borrow $20 million from the European Bank for Reconstruction and Development for the Russian factory two years ago, on the understanding that the EBRD had would have a 49 per cent stake in the plant.
A possible shock absorber fault has caused Volkswagen to recall approximately 33,000 of its Passat models. The affected vehicles were manufactured between August and November 2003 and had been sold throughout Europe. One explanation for the fault is that a screw could have been tightened to the wrong torque, thereby running the risk it could become detached.
Michelin’s reputation for quality and durability has taken on a new meaning after a globetrotting couple drove 100,000 km, twice round the world, in their Land Rover Discovery on just two sets of Michelin 4×4 tyres.
“The tyres were fantastic throughout. The first set were used during the Northern Hemisphere section of the journey, and the second set took us through Australia, South America and then onto North Africa before heading back through Europe to England,” said Peter and Eileen Crichton. And all without a single puncture!
New passenger car registration in Europe reached 1,240,539 units in May this year according to statistics published by the ACEA today. These figures represent a rise of 1.2% in comparison with 1,226,000 units produced in May 2003. This marginal increase has been put down to fewer working days in most EU countries but also to declining consumer confidence in some countries. Cumulative figures for the first five months of this year show an increase of 2.8% in line with most predictions.
National figures for the month of May show increases in a majority of countries. Among the five main markets Italy (+12%) was the best performer, ahead of Spain (+8.9%) and France (+4.8%), while Germany (-7.3%) and the U.K. (-2.8%) posted decreases. Cumulative figures show increases in 11 countries with +2.7% in the U.K.
Registrations in the new EU Member States were down 5.6% with the Czech republic and Poland posting significant decreases, while Lithuania was the best performer.
Bridgestone Europe NV/SA announced today, that it has formed a new subsidiary company, Bridgestone Retread Systems NV/SA, in a joint venture with Italian retread specialist Marangoni Tread S.p.A as minority partner. The new company, headed by Managing Director Ing. Marcello Gambarini, will have its dedicated headquarters in Brussels, Belgium.
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