Tenneco Automotive has officially opened a new factory in Gliwice, Poland, to supply shock absorbers to European-based vehicle manufacturers. The facility is 21,000 square metres in area and will make six million units annually by the year 2005, eventually employing 120 staff. Tenneco says that the $20 million investment is the latest stage in the company’s strategy to expand in Eastern Europe.
Michelin has warned its customers and distributors in Europe to beware of truck tyres being offered at extraordinarily low prices. These are believed to be the result of VAT fraud and Michelin is working with customs authorities and police across Europe. Investigations have already identified organised criminal networks and, as a result, a number of VAT frauds have been broken up. Michelin is concerned at potential harm to its truck tyre image and to its distributor network and it asks customers to be aware of complicity should they make illegal purchases from these criminal networks.
Henry Johnson, who was VP Goodyear Eastern Europe and then VP Goodyear Dunlop/Europe, has now been appointed Managing Director of the SBU (Sales Business Unit) Truck Tyres Europe. His successor is Arthur de Bok, who was previously with Procter and Gamble.
Goodyear has published its monthly investor update, giving brief details of the company’s performance in various world markets. In North America in October, industry shipments of OE and replacement tyres fell. Goodyear made production cutbacks, which continued during November. European industry-wide replacement tyre shipments fell for both passenger and commercial and Goodyear’s sales followed this trend. For OE, Goodyear shipments of consumer tyres were up on last year while those of commercial tyres fell. In Eastern Europe, Goodyear’s shipments of OE and replacement tyres fell from October 2000 levels. Replacement shipments in Latin America fell and OE shipments rose, while in Asia, OE and replacement shipments both rose.
Pirelli is to spend more than 11 million Pounds on extending its factory at Carlisle in the UK to manufacture tyres for 4WD vehicles. For some time, Carlisle has been Pirelli’s “centre of excellence” for SUV tyres and the factory produced 530,000 SUV tyres last year. The new investment will see this figure rise to 1.1 million next year and eventually to 1.6 million. 80 per cent of these will be exported to Europe and the USA. Carlisle also produces high performance tyres and total unit production at the plant will reach 4.25 million units in 2002.
There is speculation in some business newspapers that Wolfgang Reitzle, boss of PAG (the luxury car segment), might leave his post. Reitzle is a close friend of Jacques Nasser, who recently had to quit his job as CEO of the Ford Group. It is said that the European luxury segment could become part of Ford Europe and lose its independence.
Michelin’s PAX System has been named as the runner up in the Transport section of the Business Innovation Awards, handed out by the Wall Street Journal Europe. A panel of fifteen judges, covering all aspects of business disciplines, decided on the winners from more than 220 nominations. The paper also revealed that the PAX system is to be incorporated on the Edonis, a car from Italian company B. Engineering SRL, designed to break the world speed record.
Successor to the ZE-502, which proved a major market success in Europe, Japanese tyre manufacturer introduces its new product, “ZE-512”, to the European market. The tyre shall set new standards in friction resistance, aquaplaning and handling on wet surfaces. The development of the ZE-512 focused on comfort-oriented, well-balanced properties. The “two and one” profile block and the side profile’s 5-phase shifted random pitch variation minimise noise and maximise steering precision throughout the entire life of the tyre. The ZE 512 will appear in 41 dimensions.
Eight Goodyear factories have earned the DaimlerChrysler Gold Award, given in recognition of outstanding service. Seven of the plants are in North America and one is in Europe, at Philippsburg, in Germany. Goodyear was rated as “excellent” in the areas of quality, delivery, competitive pricing and technology and “acceptable” in customer support.
In the wake of the Firestone recall, Michelin says it has tripled tyre production in the USA as well as shipping thousands of tyres from Europe. A special customer service centre is handling 8,000 calls a day. Goodyear plans to provide “more than half” of the tyres replaced because of the recall and has increased production of Ford-approved tyres tenfold. The company has increased shipments to 9,000 outlets, including company-owned stores, independent tyre retailers and Ford dealers.
The Federation of Malaysian Manufacturers – Malaysian Tyre Manufacturers Industry Group claims that Malaysian manufactured tyres now conform to the highest international standards. Products have now been accepted in over 40 countries, including markets with strict regulations such as in Europe, Australia, US and Japan. Malaya’s four major manufacturers, DMIB Bhd, Goodyear Malaysia Bhd, Silverstone Bhd and Sime Tyres International Sdn exported over 2 million tyres in 2000.
Cooper-Avon has introduced another two new tyres to its range of products available in Europe. First of these is the Lifeliner Touring SLE (Sport Luxury Edition) and it is the first premium touring tyre from Cooper to be available in three speed ratings; T, H and V. The second product is the Discoverer M+S, which is a winter tyre made in Findlay Ohio, but designed for European roads. It features a number of pin holes for those countries where studded tyres are acceptable.
Lemmerz International, Inc. – the world’s leading global supplier of automotive and commercial highway wheels – announced that first quarter 2001 diluted earnings per share is projected to be a loss of $(.27) compared to earnings per share of $.51 in first quarter 2000, and compared to a loss of $(.58) per share in fourth quarter 2000. Sales are lower than the record levels experienced in first quarter 2000, but have rebounded significantly from the levels experienced in the fourth quarter of 2000, when North American car producers reduced volumes to adjust light vehicle inventories. Ron Cucuz, Chairman and CEO: “Light vehicle production in North America has stabilised compared to the fourth quarter and volumes have strengthened slowly through the first three months of our current fiscal year. Europe and other operations outside of North America continue to perform very well.”
Bridgestone’s tyre factory at Poznan, Poland, has been officially opened. It is the company’s sixth tyre factory in Europe and one of 46 across the globe. It produces 10,000 Bridgestone and Firestone tyres daily, mainly high- and ultra-high performance tyres, with a workforce of 540. The factory is a joint venture with state-owned Stomil Poznan SA.
The Tun Abdul Razak Research Centre (TARRC) has been deeply involved for the past two years in an EU-funded CRAFT project, the aim of which is to achieve better assessment of new tyre casing integrity in order to increase the number of tyres retreaded in Europe. TARRC hosted a seminar to discuss the impact of existing and proposed regulations on retreaders and some findings from the CRAFT project. The reason for the CRAFT project was based on a concern by retreaders that the quality of some new tyre casings was decreasing, with the danger that the industry could be deprived of its basic raw material. Principal research objectives included the development of new tests in order to predict the retreadability of new tyres, the establishment of a best practice drum test and a league table of tyre brands, rated according to their retreadability. The project will be finished this year. In investigating retreadability, TARRC tested a number of tyres in accordance with Regulation 54, the standard against which new tyres are tested. Under this standard, tyres are drum tested for 47 hours. The results were extremely surprising and indicate that either Regulation 54 is deeply flawed, or that the tyre industry has a problem. Testing 295/80 R22.5 M-rated tyres, the results showed a failure rate among new tyres of 20.8%. The new tyre manufacturers usually carry out their own tests and their failure rates are nothing like this figure, which begs the question why is there such a disparity between manufacturers’ results and the findings from TARRC? Under the new retreading Regulation 109, tyres are chosen and tested at random by an outside agency. Is there any independent validation of the in-house testing of new tyres? A proposal was made that new tyre manufacturers and retreaders cooperate in a programme of cross-testing new tyres in order to try and solve this apparent anomaly. Whether or not this will happen remains to be seen.
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