Edouard Michelin: Young And Rich
The UK magazine EuroBusiness ranks Edouard Michelin at number 103 among Europe’s richest 400 people with a fortune of 1.85 bn Euros.
Posts
Forward Strategy From Hayes Lemmerz
Product NewsHayes Lemmerz International is going to acquire the Schenk foundry in Germany in order to expand its suspension presence in Europe. Klaus Jünger, President European Chassis Components Group said that “this is an excellent base for our expansion in Europe.” Major customers of Schenk are Audi, BMW, Opel and Porsche.
Successful 1999 Year for ContiTech
Product NewsThe ContiTech division of Hanover-based Continental AG experienced the most successful business year of its history in 1999, according to the company. ”The year 1999 marks a big step forward – in results, globalisation and concentration on core businesses”, was the way the year was summed up at a press conference by Manfred Wennemer, board member of Continental AG with responsibility for the ContiTech division and chairman of ContiTech Holding GmbH. In 1999 ContiTech increased its turnover to 1.72 billion Euro (previous year: 1.70 billion Euro), a plus of 0.7 p.c. This would have been about 2.5 p.c. but for changes in the contributing units,some of which were sold. Turnover per employee amounted to 112,000 Euro, approximately four per cent higher than the 107,000 Euro of 1998. In non-automotive sections the general economic situation led to some decline, but business with Europe’s car makers was approximately four per cent above the previous year’s level. The 1999 ContiTech turnover was made up about 64 p.c. in the automotive sector and 36 p.c. outside it. Operating profit (EBIT) also improved. The strong growth can be attributed, among other things, to a significant reduction in the extraordinary items and reserves for restructuring, which had depressed the 1998 result. On the contrary, the 1999 year saw one-off profits, especially from sales of individual segments. Wennemer emphasised that these positive effects on the results were caused by ContiTech’s restructuring measures. Read more in NEUE REIFENZEITUNG 5/2000.
Competitive Pressure Suppresses Adequate Conti Price Increase
Product NewsContinental remains under price pressure across Europe, with on-going raw material price increases being only partly covered. According to Continental, in remarks made at the Paris Motor Show, the pressure in the tyre field is mainly coming from Michelin.
Goodyear Turnaround “On Track”
Product NewsAfter a bad year in 1999, Goodyear has announced that the company is now “on track” with its turnaround strategy.
Global Car or Not?
Product NewsOpinions differ: In many of their components American and European cars – as can be seen at the Detroit Motor Show – seem to be becoming more like each other. The advance in pick-ups and vans in the USA and the boom in the small(est) cars in Europe, but much more in Japan, however, leaves room for doubt that the recurring theme of the “global car” is a real possibility mid-term.
Price Increase For Rubber Blacks From Degussa-Hüls In Europe
Product NewsDegussa-Hüls AG, the world’s second largest carbon black manufacturer, with production sites in Europe, North America, Africa and Asia, has agian announced a price increase of 50 Euro per metric ton for its range of rubber blacks, effective from September 1st, 2000, in Europe. A continuing combination of the weakness of the Euro and unprecedented high prices for crude oil and crude oil products is leading to substantially higher carbon black production costs.
Integration At Goodyear Austria
Product NewsThe Austrian Dunlop and Goodyear companies have been integrated into the new Goodyear Dunlop Tires Austria company, which is under 100 p.c. ownership of Goodyear Dunlop Tires Europe B.V. located in Brussels.
Free Inspection Of 4×4 Tyres In Europe Offered By Bridgestone
NewsBridgestone/Firestone is offering European motorists a free inspection of 4×4 tyres made in the USA. This covers 24 types of tyres, around 13,000 of which have been imported into Europe over the past decade. The company estimates that only half this number are still on the road and it will replace them free if the customer is still worried after inspection. Nine sizes are involved.
Second Tyre Factory For Marangoni
Product NewsMarangoni Tyre plans to invest US$ 200 million to build a second tyre factory in Europe with a capacity of 4.5 million car and SUV tyres a year.
Suppliers Put their Hopes in Nissan/Renault Joint Production
Product NewsThe Nissan factory in Barcelona is not working to capacity and is the obvious candidate for joint production work in similarly built Renault models, according to a statement at the Detroit Motor Show by Carlos Ghosn, ex-Michelin manager, now responsible for the integration of Nissan with Renault. Vehicle suppliers hope to profit from the new arrangements, as Ghosn announced a significant reduction in their numbers. For instance, Hayes Lemmerz supplies nearly all the aluminium wheels to Nissan Europe and is now making big strides with Renault as well.
Latest Truck Initiatives From Michelin
Product NewsIn June, Michelin UK appointed Thierry Martin as Commercial Director – Truck and, in an exclusive interview with TYRES & ACCESSORIES, he spelled out the latest efforts of Michelin to woo customers in the competitive truck tyre market. The emphasis has switched from merely supplying product to providing a comprehensive service for customers. A good example is the Michelin Euro Assist breakdown programme, where customers with tyre problems in any of 17 countries across Europe can dial one number for 24-hour help. Today’s service advisors aim to significantly cut costs for customers across the total package and double digit savings are not uncommon. Michelin’s technical advisors monitor maintenance and diagnose problems in order that the customer gets optimum usage from his tyres. Of course, in a fixed-price contract, increasing tyre life benefits the manufacturer too. The importance of the service element was underlined when Michelin won the contract to supply tyres to Transamerica Trailer Leasing (which has 21,000 trailers in its European fleet) for the next five years. The clinching argument was not the price, but the availability of service and back-up across Europe. Michelin has extended its Michelin Business Advantage (MBA) scheme, originally aimed at car tyre customers, to truck tyre buyers. MBA is a scheme whereby independent customers and Michelin sit down together to discuss how they can work together to improve the service on offer to customers, thereby benefiting all three parties. This leads to what Thierry Martin describes as “a win, win, win situation.”
Analysts Bullish On Tyre Shares
Product NewsFollowing a few months of indifferent performance, stock market analysts are meanwhile promoting tyre manufacturers’ shares as a good buy. The reasons for this optimism are that the rise in prices of raw materials (rubber, oil, carbon black) appears to have stopped, or at least slowed down, and that price increases announced in the USA are holding.
Third Quarter Results Released By Michelin
Product NewsThird quarter results from Michelin are stronger than expected with revenues growing by 16.4% to 3,916 Euro or 14.6% if the first nine months 2000 are compared with the same period last year. Taking higher raw material costs and other economic factors into account, an EBIT of about 8% seems to be realistic for this year.
Movements In The Car Market
Product NewsFord predicts that it will once again reach a 10 p.c. market share in Europe within three years, according to the Wall Street Journal. Luxury car sales will play a large part in reaching the target. Renault and Nissan are moving closer together in Europe, merging their sales organisations. Around 9% of the 5,600 jobs are expected to be lost, saving some 1 billion Euro. By 2002, DaimlerChrysler intends to create 15,000 jobs. 5,000 of these will be in Germany in the service field of leasing, fleet management and fast fit services, according to the Financial Times Deutschland.
