Second Tyre Factory For Marangoni
Marangoni 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.
Tag Archive for: Europe
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.
Porsche Award For Bridgestone
Product NewsBridgestone has won Porsche’s Supplier award for 1999. The tyre company was also assessed by Porsche as Top Best for product quality and delivery; the only tyre manufacturer to achieve this ranking. The award was presented to Michael Conrad, OE sales manager for Bridgestone/Firestone Deutschland, and Stephen Rambow, engineering account manager in charge of Porsche affairs, at a ceremony attended by senior representatives of Europe’s auto industry.
Trelleborg Wheel Systems Launches Pirelli TM600
Product NewsThe joint venture company Trelleborg Wheel Systems has launched its first product since the company was formed – the Pirelli TM600 radial tractor tyre. TWS specialises in agricultural and forestry tyres and turns over 320 million Euro a year. The new tyre has an 85 series aspect ratio, which is an unusual sector for the company, as Pirelli has in the past concentrated on lower profile tyres. However, Mr. Maurizio Vischi, MD and General Manager of TWS, explained that this sector, although declining, still accounts for 55% of the market. If TWS wants to be the technical leader in all areas of the market (which is its ambition) then it needs an 85 series tubeless tyre. The TM600 will be sold on an added value basis – although it is by no means the cheapest in its class, it offers the customer longer life, better fuel consumption, less soil compaction and increased productivity. These claims are the result of a year’s testing in the field. Initially, the TM600 will be available in 14 sizes, rising to 23 in time. It will replace the Pirelli TM200 and TM300. TYRES & ACCESSORIES spoke to both Mr. Vischi and Mr. Anders Pettersson (President of TWS). Both are extremely pleased with the way the two organisations (Pirelli and Trelleborg) have integrated across Europe and there are hints that the company is looking to grow through acquisitions as well as organic growth. TWS is aiming to expand geographically too and the USA has been targeted as a market with particular potential for the specialist agricultural tyre company.
No Re-arrangement Of Continental/Michelin JV
Product NewsContinental spokesman Peter Schwerdtmann has denied reports that Continental and Michelin are planning to re-arrange or discontinue their two-year-old joint venture which includes combined purchasing of raw materials and Michelin’s share of Barum. The teamwork between both companies is excellent, he said, and the joint venture will continue. Terms to form the basis of a new settlement would have caused problems because of the brand rights for Uniroyal, owned by Michelin, but produced in Europe by Continental, under licence.
Significant Changes In The European Tyre Markets?
Product NewsDuring a press conference in Romania, Continentals’ CEO Dr. Kessel predicted very significant changes in the European original equipment markets. He pointed out that the consequences regarding the Firestone tyre recall will also have a great impact in Europe. Kessel believes that Firestone will lose many contracts and, among others, the Continental group would benefit and he added that there were already clear signals. But, signals yes or no, the Continental share price has fallen and it will be interesting to see whether news like this will stimulate the shares.
Traiskirchen Factory Designated MMP Plant
Product NewsDr. Hans-Joachim Nikolin, Chairman of the Semperit supervisory board and board member of Continental AG, confirmed during a supervisory board meeting of Semperit Reifen Ges.m.b.H. in Traiskirchen in mid-December that the Semperit factory at Traiskirchen will play an essential strategic part in the introduction of a new manufacturing process. Continental has developed a European strategy for the Modular Manufacturing Process (MMP), envisaging three MMP factories, each responsible for the supply of one large European region. The Traiskirchen factory has been chosen to supply the South and East European markets. The decision about a second MMP location to supply Western Europe is said to be imminent, whereas a suitable supply plant for the North European region has not yet been found. The production plan for the year 2000 gives 1.5 million car tyres made by the standard and one million by the MMP process, a total number of 2.5 million units as originally planned. However, since the manufacturing process of MMP tyres is less complicated than the standard production process, a reduction in the workforce is inevitable and cannot be compensated for by the planned increased output of 825,000 commercial vehicle tyres in the year 2000. The MMP tyre is produced in modules allowing the cost-effective production of smaller lots, and a fast reaction to the requirements of the market. MMP is therefore primarily designed as a means of reacting fast to developments in the replacement markets, and only in exceptional cases would it be considered for original equipment. This production process does away with the necessity to make a large variety of products at the standard factories, thus freeing them for large-series production.
With three new tyres,
Product NewsWith three new tyres, named “4x4Contact”, “4x4SportContact” and “4x4WinterContact”, the German tyre manufacturer wants to establish its leading brand in the segment of sports utility vehicles (SUV). And this segment seems to be quite interesting: According to a Continental market analysis the number of 4×4 vehicles in Europe is expected to double by the year 2005 compared to 1995 and leading to a growing market for 4×4 tyres. Some reasons are that new fashionable/stylish compact SUVs which are faster, fuel efficient and easier to drive or larger SUVs offering a high load carrying space and/or seating capacity are stimulating the demand. As a result SUVs are increasingly becoming an alternative to standard cars. Therefore the focus of the three 4×4 tyres is for on-road use, but for the future Continental plans to launch all-terrain and off road tyres, too. Meanwhile the “4x4Contact” is the tyre for compact and medium range SUV, whereas the “4x4SportContact” has a more sporty image. Fast and high powered cars are the target for this tyre. The “4x4WinterContact” – as the name suggests – is the specialist for the colder time of the year. European production of the tyres was launched recently and later this year they will also be manufactured in USA.
Preserving Precious Resources: Goodyear Presents Eagle NCT 5
Product NewsThe new Eagle NCT 5, introduced to the trade press at Goodyear’s own South of France test track in Mireval in mid-February, is a high-performance tyre in speed categories from H (up to 210 km/h) to Y (up to 300 km/h) with the emphasis on comfort. The manufacturer claims that the new type of tyre, immediately available in more than 20 sizes, is an improvement on its predecessor, the NCT 3 – sometimes to a very considerable extent – in braking on dry and wet roads or aquaplaning both in straight-line driving or cornering. The new product is aimed at an interesting growth market. 52 million tyres of speed index H and faster are currently sold in Europe per year, and this segment already covers 28 p.c. of the market (186 million tyres). The market share of high-performance tyres in Germany is about 35 p.c. at the moment, but still rising strongly. In the new NCT 5 Goodyear’s tyre developers had ecological qualities especially in mind. Compared with its predecessor the newly developed tyre can boast rolling resistance reduced by 20 p.c. and optimised tyre noise. In addition to the reduced rolling resistance which, according to the manufacturer, saves up to 5 p.c. in fuel, the NCT 5’s mileage is said to be improved by up to 25 p.c. In naming this new tyre Goodyear quite deliberately skipped the number 4, since the Far East, one of the target markets for the NCT 5, regards the number 4 as a symbol of impending disaster.
Reifen 2000 Review
Product NewsThe biennial Reifen show in Essen has grown and grown to become what is regarded as the most successful and most impressive show in Europe devoted to tyres and ancillary products. This year’s event was the 21st show and boasted 408 exhibitors – a 13% increase over 1998. 40 countries were represented at Reifen 2000. However, visitor numbers dropped 3.75% to 15,400, but this was regarded as not significant and due to a number of one-off factors rather than a sign that Reifen has begun to lose its appeal. Our review of the show includes articles on no fewer than sixty companies who were exhibiting, from all over the world and the coverage reflects the importance of what many regard as Europe’s premier tyre exhibition, and one which is attracting an increasingly global exhibitor and visitor base.
First Quarter Results Of Michelin Better Than Expected
Product NewsMichelin’s Q1 sales rose by 14.8% to 3.59 bn Euro; 464 m Euro more than for the same period last year. The EBIT level is, as expected, in the region of 10% of turnover.
