Due to reduced demand for passenger car tyres, Bridgestone Firestone North American Tire is halting production at its Wilson, North Carolina factory for a longer period over the Christmas break. Originally the plant was scheduled to operate between December 28 and 30, however the decision has been taken to remain closed between December 24 through to January 1.
Officials from Toyo Tire & Rubber have said the company is postponing plans to build a new tyre factory in Asia and expand its tyre output in the US. This decision has been taken in light of lower vehicle sales and the global economic slowdown, and the company has not stated when, or if, these projects will now take place.
Toyo Tire Holdings of Americas Inc. is conducting a voluntary recall – or to use its own words, a ‘customer satisfaction campaign’ – to replace a small number of 18-inch Toyo and Nitto brand tyres the company says “may not have been manufactured to Toyo Tires’ exacting standards’.
PK Ruia, the chairman of Dunlop India has told national media sources that the situation at the company’s Sahagunj plant, where work remains under suspension, is “under control.” The factory has been closed since Tuesday 18 November, when staff members were told to go home with an allowance on 2,000 rupees a month. The company now states that talks with banks to negotiate the necessary working capital to reopen are “at an advanced stage”, and that the factory expects to reopen in between 15 and 90 days’ time.
Pirelli has reportedly again voiced its desire to retain its operations in Carlisle. According to Cumbria Chamber of Commerce chief executive, Rob Johnston, representatives from the Italian manufacturer told him in talks during the week of November 17 to 21 that it planned to remain in the town. He added that the company’s announcement of dropping a shift at the factory and extending its Christmas period shutdown was infinitely better than the alternatives of redundancies or plant closure.
“The dropping of a shift by Pirelli is clearly bad news for those involved and will mean less money circulating in the local economy,” Johnston told the News and Star newspaper. “While this is disappointing, in the current economic circumstances it could have been a lot worse.
According to a news report broadcast by Luxembourg television station RTL, Goodyear will next week stop production at its Colmar-Berg, Luxembourg facility. The reason given for this week-long pause in production is a sharp decline in demand for truck tyres. According to the broadcaster, this stoppage is a one-off action. Since early October the manufacturer has first shut down production in the truck tyre factory on Sundays, and then also on Saturdays.
Emission control systems manufacturer Tenneco says it will continue its ‘aggressive investment’ in new emissions control application coverage in 2009. The company plans to add more than 300 SKUs to its Walker line of replacement exhaust parts in the coming year. This planned expansion continues a strategy begun more than five years ago, when Tenneco began to significantly increase the Walker brand’s coverage in support of aftermarket businesses. More than 600 new exhaust part numbers were introduced to the Walker line in 2008 alone, and more than 1,600 parts have been added since 2004.
Circulating talk of imminent redundancies at Continental Tire North America’s Mount Vernon factory are just rumours, a company official reported on November 18. While the company has reduced its temporary workforce by approximately 50 employees, the facilities 2000+ permanent employees have not been affected.
“We have been adjusting our production levels and controlling inventories to bring them in line with where the current market demands are,” Hank Eisenga, vice president for manufacturing at the plant told Illinois newspaper The Southern. “Rumours of major layoffs have been circulating, and that’s not the case. We are reducing some of our temporary workforce but we do not anticipate anything in the nature of layoffs to our permanent workforce.”
The statutory negotiations concerning the lay-offs of the Nokian Tyres employees at the Nokia factory in Finland ended on the 19th November, 2008. The company decided after the negotiations to lay off its personnel for 10 days and the majority of the employees will be laid off between 21.12.2008 and 11.1.2009.
Workers at Carlisle Tire and Wheel’s Bowden, Georgia facility are waiting to hear what awaits them in the coming weeks and months following the destruction of part of the company’s facility by fire on November 16. A 32,500 square metre building on the premises is said to have been completely destroyed in the blaze.
Dunlop India has felt the worldwide pinch, reacting by closing its Sahagunj factory indefinitely from Tuesday 18 November. Its 1,200-strong workforce has been asked to stay at home. Website IBNLive reports that company sources have reported that the company is running short of working capital and that it is in negotiations with the banks. It is believed that workers will be given 2,000 rupees a month until the factory reopens, though the website says that its sources believe that it could be some time before the factory resumes processing.
Meanwhile Sindh Today reports that a company spokesman told the paper: “The [economic] crisis has had a heavy impact on the tyre sector. We have a huge shortage of capital. So we called the union leaders Saturday for a bi-partite and told them since there is almost no demand, the company would be incurring heavy losses if production continued. And they agreed.” The spokesman added that he didn’t know how long the situation would remain the same: “We may get the funds in 15 days, or it may be three months even. We don’t know. But we are hopeful that we will be able to solve the problem fast.”
Kumho Tire representatives have confirmed that the company has “extended the timetable” for completion of its plant in Bibb County, Georgia plant. Company representatives added that Kumho is still committed to this project, which will help it “better serve customers in North America.” No revised deadline has yet been issued.
“Our strategy is to remain flexible to changes in market demand and allocate production resources accordingly. Kumho will continue to closely watch the North American automotive market to help us effectively compete. Kumho Tires will keep all of our stakeholders up to date with the latest information available on this plant,” Kumho representatives told Tyres & Accessories.
The Belfast Telegraph has reported that Michelin has told its staff at the French giant’s Northern Ireland facility to take an extended Christmas holiday due to the economic downturn. The factory usually remains running except on Christmas and Boxing Day, but this year will not produce anything for ten days between 23 December and 2 January. Michelin Ballymena employs 1,000 people, producing heavyweight truck tyres for North American and European markets.
The paper confirmed that workers will need either to use up holidays or take unpaid leave, though those who are most in need of the money will be able to clock on to clean the factory during the winter break. This follows the news today that the EU is reporting that the eurozone area is in recession.
The Cumberland News reported today that the boss at Pirelli’s Carlisle plant will leave early next year to take up a position at the company’s plant near Frankfurt, Germany. Mr Carducci-Agostini has worked at the Carlisle plant for four years, spend the first three as production manager before landing the top job last year. His new position will also be heading up the Frankfurt factory.
The paper also understood that the person to take the reigns at Carlisle has been appointed, though further details were as yet unavailable. The change of personnel will not – the News understood – have any impact on operations at the facility.
News published by various Indian media outlets indicates that joint venture activities between Continental Tyres and India’s Modi Tyre Company are again underway. The two companies have previously worked together, however this relationship ground to a halt with the closure of Modi’s Modinagar, Northern India plant in 2001, following labour unrest and litigations. Seven years on, Modi Tyre is said to have invested around Rs 3 billion (£39.6 million) to resume production at the site.
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