Focus Named ‘Car of the Year 2000’ In USA
Journalists at the Detroit Motor Show have voted the Ford Focus ‘Car of the Year 2000’. The Focus is produced in Germany, Spain and the USA.
Tag Archive for: Germany
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.
Wheel Report, Part 2
Product NewsNEUE REIFENZEITUNG, having focused in its wheel industry report on original equipment and vehicle manufacturers in its March issue, will in April concentrate on the pricing of wheels (manufacturer to customer), on technical features, the takeover merry-go-round and on the replacement market. It came as no surprise that motor manufacturers were not too keen on our trade magazine investigating the pricing procedure – which only serves to make this exercise that much more interesting. We are still a very long way away from completing the consolidation of the industry, as can be gathered from the takeover rumours that spring up afresh every week and from the commitment of large market players to use their strong growth potential. As our last issue went to press, we reported the sale of the Norwegian manufacturer Fundo, for instance. Who will be next? In the April issue we also take a closer look at some companies operating in the replacement market, which have influenced the most important European market, i.e. Germany, in 1999, e.g. Alcar, Artec/RH Alurad, Brock/Rad Center Derkum and many others.
Goodyear Invests 50 Million Marks in Production Base Philippsburg
Product NewsThis year Deutsche Goodyear will invest a total of 50 million marks in new production facilities at its Philippsburg factory while simultaneously introducing more flexible working hours. Having obtained the agreement of the works council to a seven-day week (now 21 shifts per week instead of the former 17 shifts), productivity at the German Goodyear factory is now set to increase once more. The additional capacity thus created will be utilised chiefly to produce high-speed tyres, whose market importance in Germany has been rising steadily for several years. Central to the investment is super-modern machinery for the further improvement of product quality in the manufacturing process for high-speed tyres -–a market segment of central importance to Goodyear’s strategic development. “The production volume of five million tyres at Philippsburg will remain unchanged for the time being”, declared Leo Ruf, a member of the management, “but the share of high-speed tyres in our annual production will go up by 700,000 to approximately four million units.” The background: Since 1995 demand for technologically sophisticated tyres in high-speed categories of more than 240 km/h (speed indices W, Y and ZR) alone has grown by over 200,000 units per year in the German market. This interesting niche is estimated to double from 1.5 to at least three million units by the year 2001.
Fast Fit At Peugeot
Product NewsIn 1997 Peugeot introduced a Fast Fit service (tyres, brakes, exhausts, batteries) at its car dealers in France. Now the concept, which is called “Rapide”, has been adopted in Germany.
More managers are leaving Viborg-Group in Germany
Product NewsThe Viborg-Group, which bought first Stinnes Reifendienst and later Gummi Meyer and now has more than 400 depots in Germany, is facing more departures by Managers. The relatively young managers Scharwenka, Rudolph, Roth and Lemle do not see their future within the group any longer and are leaving. As far as business in general for the Viborg-group in Germany is concerned we hear very different opinions. Viborg is asking for the deepest price and in addition to that for an overhead of 10 %, giving them a real advantage over all competitors. Strategic partners at the moment are Michelin, Pirelli and Dunlop. It is not clear whether all of them are paying the extra price of 10 %. Other tyre manufacturers can see how difficult it is for the Viborg Group to fulfil their promises despite the fact that all the warehouses are completely full. There will be a long article in a future issue of NEUE REIFENZEITUNG. Furthermore, Viborg’s management is not willing to talk to the press and is urging employees not to talk to the press otherwise their jobs will be in jeopardy.
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.
Best-Ever Result for Dunlop Germany
Product NewsDeutsche Dunlop GmbH, part of the Goodyear Dunlop Tire Group (Western Europe), has announced a record turnover in 1999 of 835 million Euro and a net profit of 63.3 million Euro. The operating profit was 12.5% of turnover. Dunlop Germany invested 68.5 million Euro, which represents 8% of turnover. The company has capital of 300 million Euro. Whilst employment in the rubber and tyre industry in Germany has decreased over the last ten years by 30%, Dunlop has increased its number of employees by 21% over the same period to 5,176 at 31st December 1999. The income of the four directors was excellent, averaging 2.9 million marks each as recognition of delivering outstanding results. From a German standpoint it is worth noting that the management have boosted “location Germany”. They showed the business world that it is possible to achieve excellent results in a German environment. The management remains optimistic for the future. Finance director, Dr. Volker Wingefeld, said that Dunlop expect to achieve results for this year comparable to those of 1999. The work of marketing director Dieter Seibert should also be mentioned. The Dunlop brand is stronger than ever before in Germany. The willingness to buy Dunlop is increasing significantly. Until last year the management held a press conference every year in Frankfurt, close to Hanau. Now, as part of a much bigger group, they are calling it a “press-breakfast” to get their message across.
Michelin Germany Increased Investments By 50 %
Product NewsIn 1999, Michelin increased its investments to 128 million DM (1998: 87 million DM). Sales grew to 3.215 bn DM (3.115 bn in 1998), and employment numbers (6,747) were stable. Earnings before income and taxes fell to 69 million DM (87 million DM).
Price Increase From Pirelli Germany
Product NewsPirelli has announced a price increase for commercial tyres of 2.5%, effective 1st September 2000. A company statement attributed this to the increasing costs of raw material.
3.8 Million New Car Registrations
Product NewsThe association VDA has calculated that 3.8 million new cars were registered 1999 in Germany; 2% more than in 1998. The association is expecting a decline in registrations for the year 2000 of between 2 and 5%.
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.
With Reifen Gundlach to the Homeland of GT-Radial
Product NewsIn February Reifen Gundlach GmbH organised the “GT-Radial Tour 2000”, a trip to GT-Radial’s country of origin. The name is a brand of radial tyres (car summer/winter, van, light truck, off-road) produced by the Indonesian tyre manufacturer Gajah Tunggal. Under the brand name “Gajah Tunggal” the company also produces cross-ply tyres for trucks and buses as well as industrial tyres and motorcycle tyres under brand names “Nitto Tyre” and “IRC”. In Germany GT-Radial tyres have been sold exclusively by wholesaler Reifen Gundlach (part of the Japanese Itochu group) for about six years. During the event the tyre manufacturer presented (among others) two new tyres, “Preciro” (available from May, eleven sizes, series 60 and 65) and “Classiro” (QIII/2000, seven sizes, series 70). The current range of products has also been enlarged by new sizes/versions and the Indonesians also become increasingly interested in the small transporter and van segment. When Gajah Tunggal speaks of the intention to enter the radial truck tyre business, the company is probably taking the long view. Further volume growth in the winter car tyre segment is targeted, too. Especially in Germany, one of the most important markets for the company anyway. The export business (80 to 90 p.c.) in GT-Radial tyres is (more than) vital for the manufacturer, since sales figures in the non-radial tyre segment have fallen sharply due to the Asian crisis.
MIRS Tyres Produced In Milan
Product NewsThe first production line utilising MIRS technology (Modular Integrated Robotized System), was unveiled by Pirelli chief Marco Tronchetti Provera at an international press conference on 11 July at the company’s Bicocca factory. The MIRS process is managed entirely on-line. In the next three years, four more MIRS plants will be opened in Germany, the UK, the USA and the Far East, representing an investment of 500 million Euro (excluding building and servicing costs). Total production capacity will be 10 million HP and UHP tyres a year.
Phoenix Ambitious
Product NewsFormer tyre producer Phoenix (Germany) wants to double sales by 2005 (1999: EURO 859.7 million). Core businesses (now accounting for 86% of turnover) are car vibrations and acoustics, conveyors and hose systems.
