Titan Purchase Committee Member Named
(Akron/Tire Review) In its third quarter financial results, Titan International released the names of those who are serving on its special committee to conduct sale negotiations with One Equity Partners.
(Akron/Tire Review) In its third quarter financial results, Titan International released the names of those who are serving on its special committee to conduct sale negotiations with One Equity Partners.
Continental AG is considering whether it should buy some assets from Delphi. CEO, Manfred Wennemer told the Financial Times Deutschland that the company and others were looking to see if Delphi would see off some of its assets. “This is a chance for everyone — also for Continental. We have to see what they want to or must sell off,” the newspaper quoted Wennemer as sayding. Wennemer did not say what parts of Delphi Continental would be interested in, but he ruled out any purchases that would take the automotive supplier into any new areas.
Russian tyre producer Amtel plans to attract $250 million at an initial public offering in London next month, Reuters has reported. Amtel-Vredestein plans to sell 25 per cent of its stock at the IPO, which is planned for 10 November, the news source said.
Hayes Lemmerz International, Inc is to sell its aftermarket brake controller business to Hayes Brake Controller Company, a limited liability corporation formed by Syncro Corporation of Arab, Alabama. Under the agreement Hayes Brake Controller Company will acquire all inventory, assets and intellectual property necessary to the operation of the aftermarket brake controller business. Financial terms of the transaction were not disclosed.
International ratings agency Fitch Ratings has said that the settlement between Bridgestone and the Ford Motor Company could pave the way for Bridgestone to improve profitability in its US operations. The settlement, which is in relation to the infamous “August 2000 Firestone/Ford Explorer Tyre Recall” problem, will have a negative effect on Bridgestone’s financial position in the short term. Despite this Fitch affirmed Bridgestone’s senior unsecured foreign currency rating at ‘A’ with stable outlook and short-term rating at ‘F1.’
(Akron/Tire Review) Bridgestone/Firestone North American Tire (BFNAT) has reached a settlement agreement with Ford Motor Co on “outstanding financial issues” tied to BFNAT’s August 2000 Firestone Wilderness tire recall and Ford’s subsequent May 2001 tire replacement program. In the agreement, BFNAT will pay Ford some $240 million. BFNAT said the deal “settles all remaining matters between the two companies related to these campaigns.”
MAM Software has just completed the installation of its Autopart v20 management system at all 44 branches of Mr. Clutch Autocentres, the national garage services chain. MAM was chosen because of its ability to meet the requirements imposed by Mr. Clutch’s recent expansion of services.
The Goodyear Tire & Rubber Company has announced plans to launch a new airship in the spring of 2006 to be deployed to its Pompano Beach, Florida operation. The new airship has been in production for the past two years as a previously scheduled 2006 replacement for the Stars & Stripes, which has operated in Florida since 1992.
Goodyear has implemented temporary reductions in production at its North American tyre facilities due to disruptions in the supply of certain raw materials resulting from the impact of Hurricane Rita in Texas and Louisiana.
Michelin has bought Apollo Tyres’ stake in the two companies’ joint venture. In addition to the 49 per cent stake Michelin now owns as a result of the acquisition, the French manufacturer will hold onto the 14.9 per cent stake it acquired in Apollo Tyres two years ago. Explaining the reason behind the buy-out, Michelin said: “While the use of radial tyres has gone up in the past two years, it is at a pace that was slower than projected by the partners.”
Michelin has invested in a wind turbine electricity system at its Dundee facility. Two giant turbines, each 400 ft high will be operational as of next February and will provide around a third of the factory’s annual power demands.
In a company statement the manufacturer announced that contracts are being finalised with the developer, Ecotricity, and installation will begin within the next few months. The new turbines will generate 8 million kwh of power.
The Goodyear Tire & Rubber Company has named Marc O Voorhees as vice president of finance for North America. Voorhees comes to Goodyear from Eastman Kodak Company, where he was most recently operations manager, Digital & Film Imaging Systems European Region based in Geneva, Switzerland.
Continental AG chief executive, Manfred Wennemer, plans to raise tyre prices between 3-8 per cent in the fourth quarter of this financial year, various news sources have reported. The increases “will take place in the last quarter of this year, most likely in November,” Wennemer told the magazine the German Autowoche magazine.
He also said that the price increases are likely to take place somewhat earlier in the US. “It depends upon the product and the market. The way things look now, the price increases are likely to be a bit less in Europe than in North America, where we really get hit because oil is traded in US dollars so we won’t get any benefit from the strong euro there,” Mr Wennemer told the AFX news agency.
Recycling has not only become more important to the public, but to the tyre industry too. Tyre recycling has a lucrative future, and tyre shredding is fast becoming a money-spinner for those companies involved. The choice of tyre shredding and recycling equipment manufacturers and distributors is growing, as is the range of casing collection services throughout the industry.
“However, it is one thing to realise the potential of this market but quite something else to actually set up a business that will evolve into a successful and lucrative service,” says Bob Batchford of RJB County Contractors. This is why the company has recently established a new division within the business, RJB Consultancy, to provide a service to both new and established businesses on how to achieve financial reward from tyre recycling.
Deutsche Bank analysts are convinced that Continental’s US passenger car division has made losses of up to 200 million euros last year. The closure of Conti’s Mayfield facility was expected to have cost up to 120 million euros alone. Financial experts have abandoned hope for a noticeable and continuous growth. During 2005 the tyre manufacturer is expected to come up with an annual loss of about 100 million euros, says Deutsche Bank, meaning that the shutdown of the Mayfield factory didn’t have its expected positive affect.
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