Continental Teves is launching production of six new electronic stability control programs in North America for model year 2004 vehicles. Continental expects to supply more than 3.6 million stability control units to automakers in North America, Europe and Asia in the 2004 model year, a 7 per cent increase on 2003.
Earthmover and agricultural tyre and wheel specialist Titan Europe is to be listed on the AIM market in London, creating a separate public company from owner Titan International. The value of Titan Europe will be 30 million Pounds Sterling (US$50 million) and Titan International will remain the largest stockholder.
Continental’s nine-month figures would have been 5.7 higher than for the same period last year, but currency exchange effects mean that they were virtually identical at 8.485 billion Euro. The EBITA (earnings before interest, tax and regular goodwill amortization) for the nine months was up 20.7 per cent to 661 million Euro (2002: 547 million). The return on sales was 7.8 per cent (2002: 6.5 per cent). Sales rose at Continental Automotive Systems and at ContiTech. On the tyre side, sales and earnings increased for the Passenger Tire division, but declined for Commercial Vehicle Tires.
Michelin winter tyres performed well in a test of 40 tyres in three sizes, conducted by ADAC, Europe’s largest automobile club, in Germany. The Michelin tyres tested achieved the best overall scores and, in the V-rated category, the new 225/45 R117 Pilot Alpin was awarded the maximum score.
Bridgestone/Firestone North American Tire have signed a ten-year agreement to continue to supply tyres as OE on Kenworth and Peterbilt trucks and other Paccar vehicles. Bridgestone was named as “standard OE tyre” by Paccar back in 1991 and are supplied on all new vehicles in the USA unless the customer specifies otherwise. In Europe, Paccar supplies vehicles under the DAF, Foden and Leyland names.
GM has announced a 3Q net income of $425 million, compared to a net loss in the same period last year. The downside was that the group made more money from its finance operations than from selling cars, with profits falling in North America and a loss in Europe of $152 million. Things were better in Asia, where profits more than doubled to reach $162 million. GM warned that declining markets in the US and Europe, currency values, increased costs of the new labour contract with unions in the USA and on-going pension costs mean that the group will not achieve its aims for 2003 in the US (to earn at least $1.7bn) nor in Europe (to lose less than $200 million).
Neil Burrows (44) has been appointed to the newly-created role of Marketing Director for Goodyear Dunlop UK. He joins the company from Nissan Europe,
where he was responsible for advertising and brand management across Europe. Before this he was Marketing Director of Nissan (GB).
Ford of Europe’s restructuring plans hit a snag as workers at the company’s factory in Genk, Belgium, went on strike, picketing the plant and burning tyres to block the entrance. Last week Ford announced that 3,000 jobs were to be axed at Genk and the current industrial unrest is in response to the restructuring plan.
Ford began its much-heralded jobs reduction programme by cutting 3,000 jobs at its factory in Genk, Belgium. This is in contrast to previous plans to invest 900 million Euro in the plant. Lewis Booth, recently-appointed as Ford’s COO in Europe, was pessimistic about market conditions, saying that he expected no recovery in the European car market next year, nor the year after. Ford of Europe lost $774 million in the first six months of the year.
There has been an unequivocal direction from Akron and Brussels, European Goodyear directors tell their subordinates. Once again, no matter by what means, the company has to cut expenses. Apparently the 2003 Ebit goals (reportedly 400 million US Dollars), that have been set by the creditor banks, are seriously at risk. Should the Ebit remain below the minimum 400 million threshold the banks would be entitled to withdraw from the concessions made earlier this year. And achieving the set Ebit goals seems to be becoming more difficult due to rising raw material prices and a sluggish American economy. The latest round of economy measures does nothing to dispel the feeling of insecurity among employees. What is more, it makes them angry and frustrated because even the smallest purchase of goods now has to be authorised. The potential of these economy measures would appear to be virtually insignificant. According to insiders, in Europe this potential is less than 2 million Euro. How far away the corporate group still is from its expected turnaround will be revealed with the third quarter figures. That Goodyear will end this year with another severe loss can be taken as read, no matter what economy measures are taken.
Only days after signing new master labour agreements with unions in the USA, Ford and DaimlerChrysler have announced comprehensive job-cutting plans. Ford will lose 12,000 jobs worldwide (1,700 in Europe), while DCX will offer early retirement packages to “thousands of US workers” according to reports. One unconfirmed press story suggests that DCX could close up to nine US factories as the car makers face a downturn described as “the most severe that the industry has suffered.”
Ford is aiming to lose 1,700 jobs in Europe, by offering voluntary early retirement to workers at two factories in Germany. A similar move is expected at the Ford factory in Gent, Belgium, while workers in the UK have already been offered early retirement.
Yokohama Rubber is to introduce its Advan tyre brand into Europe for the first time at the forthcoming Frankfurt International Motor Show. The tyres on show will be run-flats and it is believed that Yokohama will market Advan as a high quality, high performance tyre for luxury cars, building up brand awareness by participation in motorsports events. Advan is an established brand in Japan and its only European exposure so far has been through OE fitment on imported vehicles.
Bridgestone will return to the Frankfurt IAA in 2003, after a 12-year absence, with an innovative display of its latest tyre technology and achievements. The 310 m2 booth will be located in Hall 8, nr. A18. The famous red Formula One Ferrari catches the eye, but there’s more to the stand than motorsport glitter. “We wanted to show that Bridgestone develops world-class tyre technology”, says Mr Günter Unterhauser, Managing Director of Bridgestone Germany. “The IAA is one of the most prestigious motor shows in the world and certainly the top show in Germany. It is not only for end users. It gives us the chance to invite loyal dealers and our First Stop partners, to convey the message that we are a high tech company and to show them the new range.”
Lewis Booth, Chief Executive of Mazda for the past year, has been named as the new president of Ford of Europe, succeeding Martin Leach, who resigned recently. Booth’s place at Mazda, in which Ford owns a 33 per cent stake, will be taken by Hisakazu Imaki, who has been with the company for 38 years.
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