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Goodyear Announces ‘Precautionary’ Recall in North America

Goodyear has announced a recall – or, in the company’s own words – a “precautionary customer satisfaction campaign” on particular P215/70R14 tyres sold under a number of names in the US and Canada. The tyres were made between 2003 and 2006 under 23 names, including associate and private labels such as Douglas, Kelly, Mohave and Republic. A complete list of the private label brand names involved in the program can be seen at Goodyear’s website www.goodyear.com.

The tyremaker points out that, although it has launched an exchange program, no manufacturing or design defect has been found in the tyre. “This precautionary campaign is in response to our internal analysis and review of early warning data we monitor on our tyres,” said Sim Ford, manager of Goodyear’s government and customer compliance. “The company has determined some of these tyres have experienced adverse service conditions that have led to a tread separation, and in the interest of customer satisfaction has decided to replace qualifying tyres.

3rd December 2007/by Tyrepress Editors

Goodyear Close to Announcing Location for New HQ

It appears likely that Goodyear will soon confirm its continued presence in Akron, Ohio with the anticipated signing of a deal to construct a new global headquarters in the city said to be close. The official announcement of Goodyear’s intentions will end several months of speculation as to whether the tyre major will replace its 80 year old premises with another headquarters in Akron or bid its traditional hometown farewell.

During the past few months government and business officials from the town and the state of Ohio have offered Goodyear a host of measures to make remaining in Akron an attractive an option as possible, and while the company has not commented on exactly what has been promised, a company spokesman, Scott Baughman, was quoted in the Akron Beacon Journal as saying Goodyear was “pleased with the progress that has been made with all of the groups involved.”

30th November 2007/by Tyrepress Editors

Hankook: Stopped Subsidy Reports False

Hankook has flatly denied reports that the Hungarian government has stopped an $820,000 training subsidy, characterizing them as “misinformation.” One company spokesperson told Tyres & Accessories that, while Hankook was perfectly entitled to claim such a subsidy, the Korean manufacturer hadn’t in fact applied for one. Therefore Hankook maintains that the Associated Press’ earlier report that the Hungarian government had stopped an $820,000 training subsidy payment to Hankook Tire Co. due to violations of the country’s labour laws is totally false.

28th November 2007/by Tyrepress Editors

TCI Disinvestment Approved by India’s Lower House

India’s national house of representatives, the Lok Sabha, on November 23 passed the Tyre Corporation of India (Disinvestment of ownership) Bill, 2007 by voice vote. The move brings the divestment of the Indian government’s equity in the troubled entity another step closer. The Bill also seeks to revive the fortunes of the government controlled public sector corporation through pairing with a strategic private industry partner.

India’s minister for heavy industry and public sector enterprises, Mr Santosh Mohan Dev, said the government agreed upon four suggestions submitted by the ministry’s standing committee.

26th November 2007/by Tyrepress Editors

Government Relations in Hungary on Track, Assures Hankook

A representative from Hankook Tire has commented on published news regarding the company’s operations in Hungary, allegations initially released by South Korea’s official news agency, Yonhap News, and repeated in the English language newspaper the Korea Times.

The Korea Times reported that the Hungarian government has cancelled previously agreed upon subsidy payments. However, when speaking with Tyres & Accessories, Hankook Europe public relations manager Felix Kinzer refuted the occurrence of any such event. “Both contract parties are fulfilling their contractual obligations according to the agreement,” stated Mr. Kinzer. “Part of these obligations is paying the subsidies according to the progress of the investment.” The more Hankook invests, reiterated Kinzer, the more they will continue to receive in subsidies.

26th November 2007/by Tyrepress Editors

Ruling Requires Manufacturers to Prove Harm from Imports

A federal trade panel ruling in the US has provided a glimmer of hope for Chinese tyre manufacturers facing the prospect of tariffs imposed upon their products. On November 20 the United States International Trade Commission ruled against the American glossy paper industry’s request for tariffs on paper imported from China, discarding duties that the US government had authorised earlier in the year. The ruling stated that US makers of glossy or coated paper had not been “materially injured” or “threatened with material injury” by the subsidised Chinese products entering the market.

However the ruling did not dispute that the Chinese government’s programme of subsidising of products destined for export may be improper or illegal, therefore the door remains open for US tyre manufacturers, amongst others, to seek relief through the imposition of tariffs. Government policy introduced in March, allowing for potentially crippling tariffs on Chinese manufactured goods on the premise that China illegally subsidises some of its exports, also remains in operation.

21st November 2007/by Tyrepress Editors

Smithers Rapra, the Polymer Specialist

Smithers Rapra Technology Limited is better known as Smithers Rapra, a wholly owned subsidiary of the Smithers Group and recognised as a world leading plastics and rubber consultancy. The company has premises in two UK sites – Shawbury, Shropshire and Billingham, Cleveland – and can provide clients with a comprehensive independent service, including technology and information services for the polymer industry and for industries that utilise plastics and rubber in any component, product or production process.

The industries supported by the services Smithers Rapra provides are varied and include the commercial, industrial, pharmaceutical, automotive and transport sectors; a diverse range of business, yet all requiring specialist assistance in the area of polymers. Smithers Rapra can provide a mix of on-site expertise and facilities that enable the application of an integrated approach to problem solving, and the company believes the core capabilities possessed by Smithers Rapra lie in the skills and experience of its people, many of whom are recognised and accepted as leading experts in their field.

14th November 2007/by Tyrepress Editors

Hankook Issues Statement Regarding Worker Claims

(Akron/Tire Review) Hankook Tire has issued a statement in response to news reports that South Korea’s Ministry of Labour is investigating the relationship between the working environment at two of Hankook’s factories and the sudden deaths of 14 employees. The deaths being investigated occurred between May 2006 and October 2007, and workers at the company’s factories in Daejeon and Geumsan, claim the deaths can be linked to a toxic chemical solvent used during the manufacturing process – a claim Hankook reports it has examined but as yet remains unverified.

Hankook’s statement says:

13th November 2007/by Tyrepress Editors

Paul Everitt To Be New SMMT Chief

The Society of Motor Manufacturers and Traders says that Paul Everitt will be its next chief executive. He will succeed Christopher Macgowan who leaves the society at the end of December, after a nine-year term.

Everitt is director of civil air transport and communications at the Society of British Aerospace Companies, where he is responsible for environmental and safety issues, as well as leading its media team and government relations programmes. Before this, Everitt was head of communications, economics and policy at SMMT. He played a big part in launching the SMMT’s motor industry sustainability report and its annual CO2 report, plus he also took a lead on a range of high-profile policy campaigns, including the End of Life Vehicle Directive, Block Exemption and the Climate Change Levy.

12th November 2007/by Tyrepress Editors

Challenge Bibendum Returns to Shanghai in November

The 9th annual Challenge Bibendum is only two weeks away, and this year sees the event returning to Shanghai, host city to Challenge Bibendum 2004. The Challenge Bibendum, created by Michelin in 1998, is a concerted effort on the part of vehicle manufacturers, technical partners, energy suppliers and research institutes to provide political and economic decisions makers with insights and understanding into the latest advances in vehicle technology for creating cleaner and more fuel efficient transport options.

31st October 2007/by Tyrepress Editors

Changes Coming for Tyre Corporation of India

The long embattled Tyre Corporation of India will soon gain a new owner and company structure. These changes are taking place as a result of the Indian government’s October 25 approval of a proposal for the company’s disinvestment.

The proposal calls for the “sick” public-sector enterprise to be operated as a joint venture, with a private company acting as partner. For such an arrangement to take place India’s government needs to introduce an amendment to the Tyre Corporation of India Ltd (Disinvestment of Ownership) Bill 2007. India’s Information and Broadcasting minister P. R. Dasmusi has informed media that the government has granted approval to these amendments, and the bill is now pending before parliament.

29th October 2007/by Tyrepress Editors

Conti to Invest 150 million Euros in China Tyre Plant

Continental AG is to substantially expand its presence in China through the establishment of a new tyre manufacturing facility in the city of Hefei, Anhui province. Conti will invest a total of about 150 million euros into the project, and construction is scheduled to get underway in mid 2008. A date of early 2010 has been put forward for the start of tyre production. An appropriate investment plan for the project was agreed upon on October 28 and the company is currently in the process of obtaining the required permits from China’s central government.

“With this move, we are entering one of the world’s most dynamic tyre markets, following careful analysis and intensive preparation,” stressed Continental Executive Board chairman Manfred Wennemer in Hanover on October 28. “In addition to Automotive Systems and ContiTech the Passenger and Light Truck Tires division will thus have a production location in China and profit from the continuing positive development.”

29th October 2007/by Tyrepress Editors

Conti Receives Local Help to Remain Competitive in US

Local government is giving the Continental Teves brake facility in the US state of North Carolina a helping hand in order to help it remain competitive. On October 19 Henderson County agreed to give Conti $32,150 next year – an amount equalling 80 per cent of the company’s annual property tax – and up to that amount for each of the following four years, and the Town of Fletcher will give the manufacturer exactly half this amount.

Continental sought economic incentives to help secure new contracts, in particular with Daimler and Chrysler to manufacture brake callipers for the Jeep Grand Cherokee, Durango and Dakota and the Mercedes M Class vehicles. The funding will enable the Teves plant to create 35 new jobs. “We in the automotive industry are competing on a worldwide basis,” said plant manager Bobby Nelon. “It’s absolutely necessary we come together as a community and industry so the Town of Fletcher and county of Henderson can continue to prosper.”

22nd October 2007/by Tyrepress Editors

Report: Chinese PC Market Accelerates With Government Backing

According to a new analysis from Frost & Sullivan the Chinese passenger car sales volumes have jumped from about 1.2 million in 2001 to over 5.17 million in 2006. Moreover, China has overtaken Japan to be the second largest automotive consumer in the world in 2006. Reduced tariffs are expected enable foreign companies to slash the prices of their cars and compete with the products of domestic OEMs. Meanwhile, new rules on the qualification evaluation of car dealership will ensure the elimination of car dealers without authentic authorisation, aiding fair competition in the market.

“Policies have also been drafted to improve the quality of car parts and components to guarantee the safety of passengers,” says Frost & Sullivan Industry Manager Cecilia Yuan. “The move to promote the consumption of low-cylinder volume cars will not only improve their effect on the environment, but also raise the prices of luxury cars.”

22nd October 2007/by Tyrepress Editors

Israeli Green Police Enforce Tyre Recycling Law

Israel has embarked on a national campaign aimed at enforcing the Tire Disposal and Recycling Law enacted on January 23, 2007. During the scrap tyre swoop on 25 September, the Ministry of Environmental Protection’s Green Police inspectors visited 114 tyre repair shops, provided explanations and distributed information sheets on the new law, and checked compliance with the law, especially in terms of proper storage and disposal of used tyres.

According to the government, tyre importers and Israel’s sole new tyre manufacturer (Alliance Tire Company Ltd.) have begun to collect used tyres from garage, but not necessarily fast enough. “On the one hand, this represents a major improvement in comparison to conditions prior to the law and demonstrates that steps are slowly being introduced to deal with the problem of waste tyres. On the other hand, in most of the shops – 87 out of 114 – flaws in compliance were discovered, mostly in relation to the storage of used tyres,” the Israeli environment department said in an official statement.

22nd October 2007/by Tyrepress Editors