The National Highway Traffic Safety Administration (NHTSA) has opened four separate defect investigations into the Ford Focus. Two of the investigations relate to possible airbag malfunctions, and the others concern rear wheel bearings failure and reports that the engine could catch fire. Aimed at motorists under 35, the Focus is the fifth best-selling car in the USA. However, since its introduction in 2000, it has been the subject of eight recalls.
EU Competition Commissioner Mario Monti is to investigate Continental’s decision to switch production to Portugal while closing its Gislaved factory in Sweden. Some sections of the Swedish media have suggested that the move was prompted by EU grants and tax breaks. The Portuguese government said that an EU aid financial package worth 23 million Euro had been approved last summer for the expansion of a Conti factory in northern Portugal. Continental says that overcapacity is responsible for the Gislaved closure and the company says that no significant amount of tyre production has been moved to Portugal.
The White House has moved to end the wrangling over the forthcoming mandatory fitting of tyre monitoring systems on vehicles in the USA. The argument has been over which technology to use; whether to directly monitor air pressure in all four tyres or to use the vehicle’s ABS System, which can show when one wheel is rolling lower than another but which cannot detect low pressure in all four tyres. It has been decided to let auto makers offer either system while the Government and the NHTSA study the systems more closely. The main objections seem to be based on system cost, rather than safety performance.
The tyre recycling issue may be about to gain a boost from the heightened awareness of waste management raised in the UK, by the increased level of dumping of domestic fridges. Inaction by the UK on the issue has led to the imminent implementation of laws requiring the controlled dismantling, recycling and disposal of various elements of old fridges. However, the facilities to dispose of the waste do not exist in the UK – resulting in a fridge mountain growing at a rate of 6,500 units per day. Increased disposal costs – as much as £70 per fridge, have resulted in fly tipping of old units. This high visibility problem has led to questions being asked in the Commons and Environment Minister, Michael Meacher denying Government responsibility, blaming the European Commission. This heightened awareness of waste management might also attract attention to the tyre problem.
Tirex, the Canadian company which has developed a cryogenic tyre recycling process, has been officially accredited as an authorised tyre recycler by the Provincial Government recycling agency, Recyc-Quebec. Tirex has also benefited from tax credits, totalling $Canadian 86,825 net.
Korean tyre manufacturer Kumho’s production at Kwangju and Koksung had been halted by a walkout by 4,000 union members in protest at Government policies blamed for the loss of thousands of jobs throughout South Korea. Originally, a General Strike was planned from 5th July. Kumho representative, Lim Yoon, said the company would have lost $2.7m per day as a result of the strike. But – as Kumho says – further conflicts could be avoided and production is back to normal.
The Tanzanian parliament was told yesterday that the Arusha-based General Tyre factory was coping with producing passenger car tyres but was failing to produce truck tyres. Government taxes on imported truck tyres were punishing domestic businesses which had little choice but to buy imported Bridgestone and Michelin truck tyres.
Tyres smuggled into Ethiopia through the port of Djibouti cost the Government 64 m. Birr (8.8 m Euro) in lost import duty every year. The illegal trade has affected the Addis tyre factory, which has cut production and laid off workers. Losses incurred by the factory and importers are estimated at 196 m Birr (26.98 m Euro). The problem is a serious one: Berhanu Mewa, President of the Addis Ababa Chamber of Commerce, warned that failure to control the smuggling “would cripple the country’s economy”.
Nissan has made the decision to build its new Micra model at its Sunderland, UK, factory, rather than France, following approval of a 40 million Pound grant. The news is expected to secure 500 jobs at the plant and has been welcomed by the Government as evidence of Nissan’s long-term commitment to the north east. It is thought that Nissan will demand that, in the future, more of its component suppliers for cars made at Sunderland submit invoices in Euro rather than Sterling.
On Thursday the 18th January , in response to a question from Mr. Peter Pike MP for Burnley, the Minister for Trade, Mr Richard Caborn announced that the Government was to “commission a competitive study to examine the entire rubber industry, and especially the tyre sector”. Peter Pike MP quoted cuts in tyre production in the UK (Michelin, Goodyear, Dunlop, Continental) and advised the Minister that there was concern in his constituency, Burnley, home of a Michelin plant, for the future of the Tyre industry in the UK. The Minister responded with figures showing overall tyre production standing at £1 billion, and exports at £800 million, and some 8,000 people still employed directly in the tyre manufacturing industry. He added that with electronics playing an increasing part in production we (the government) wanted to ensure the country was at the leading edge of technology, and quoted Pirelli’s new robotics line as evidence the UK Tyre industry has a future. Sir Sydney Chapman MP for Chipping Barnet asked whether, given the sharp decline of the Euro against Sterling should the government not have eased the tax and regulatory burden on the industry? The Minister’s response was that the government’s policies had been welcomed by the industry; that three of the five major tyre manufacturers were operational in the UK and that they were “looking to the government to give a lead on a foresight programme to develop new technology for those industries”. He added that the standing of the Euro had had little or no effect on the global re-organisation of the tyre manufacturers. In a follow-on question, Barry Sheerman MP for Huddersfield asked if the Minister thought that if a multinational closed down a UK operation, that the UK consumer should be encouraged to be discriminatory about the products he or she buys, to favour UK industries. In response the Minister stated that he did not think this to be an acceptable way forward, that “the way forward was to expand the global economy in a managed way that will produce a good result for the consumer”.
The Tanzanian Government has restricted the import of tyres in a protectionist measure. A spokesman said that businessmen have been taking advantage of consumer ignorance by importing “cheap, sub-standard products” and also used tyres, which is illegal. This has threatened the country’s only domestic tyre factory, General Tyre (EA), which has been unable to sell all of its annual production of around 330,000 tyres.
The Department of Trade and Industry has appointed Chem Systems Ltd. to conduct a three month survey into the rubber industry in the UK. This will include the tyre industry and focussing on end-user needs should provide recommendations upon which trade bodies and the government can plan future policy to develop the industry.
The subject of scrap tyres is one which continues to exercise the minds of all sectors of the tyre industry and, with a ban on landfilling of tyres imminent, alternative methods of disposal are being urgently sought. The UK Government has produced a number of reports on the subject and these are looked into as part of our feature on scrap tyre disposal. Also included are details of possible disposal methods and machinery as well as latest news on the subject, for example the temporary closure and planned refurbishment of the SITA tyres-to-energy power station in the Midlands. Those disposing of tyres are under increasing pressure; not only to find new outlets to take scrap, but also from steep rises in overheads such as fuel. The problem of scrap tyres affects the industry from top to bottom and most observers expect the Government to introduce some method of producer responsibility if the industry does not come up with its own solution in the near future.
There are reports that Michelin is on the verge of forming a joint venture with Chinese tyre maker Shanghai Huayi Group Corporation (SHGC). Michelin would not comment, but SHGC has been quoted locally as saying that the deal has been done and is waiting formal government approval.
The Venezuelan subsidiary of Ford has said that it will no longer fit Firestone tyres as OE on its Lazer vehicle and 350 truck. Goodyear tyres will be used instead. Bridgestone/Firestone says that this represents only a 2 per cent loss of sales in the Venezuelan market.
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