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Apollo Chairman Speaks on ‘Signs of Revival’

While addressing shareholders at the Apollo Tyres Annual General Meeting, company chairman Onkar S Kanwar expounded upon what Apollo has gained and learned in the past year. His topic, titled ‘Navigating a Slowdown’, centred upon the company’s business model, which according to Kanwar has enabled Apollo to remain afloat during the recent slowdown.

This business model, Kanwar explained, covers Apollo’s three main principles: domestic markets, cost and quality initiatives. Sticking to this tried and tested business model has paid dividends during the past twelve months, he added. “Last year’s crisis has allowed your company the opportunity to break structures and behaviours that sap productivity and effectiveness out of organisations. It has allowed your company to realign itself to a new reality.

23rd July 2009/by Tyrepress Editors

Goodyear Dunlop’s Hanau Plant to Cut 140 Jobs by 2010

Goodyear Dunlop Tires Germany GmbH is to cut 140 of the 1340 tyre production jobs at its Hanau production facility, according to local news reports. This year production is expected to fall from 7.4 to 6.8 million tyres will fall. The company’s management is planning to produce just 5.6 million tyres in 2010. The scrapping has not helped us,” regrets Jörg Pohl, chairman of Goodyear Dunlop’s Hanau tyre production plant. Goodyear Dunlop Tires Germany GmbH employs over 7400 workers at seven sites across the country.

22nd July 2009/by Tyrepress Editors

Conti Clairoix Workers Face Property Damage Charges

Several hundred employees from Continental AG’s Clairoix facility in France assembled outside a courthouse on July 17 during the appearance of seven of their colleagues. The seven workers were answering charges related to property damage at a regional government office in April. If found guilty, the accused face up to five years imprisonment and a fine of up to 75,000 euros.

The seven are accused of stormed the office in April following the Clairoix factory’s announced closure. Furniture and computers were thrown from windows and files were removed from cabinets and strewn about. Authorities estimate that around 40,000 euros worth of damage occurred.

17th July 2009/by Tyrepress Editors

Goodyear Cutting Philippines Tyre Jobs

Goodyear has announced that it is to close its Philippines tyre plant, cutting 83 per cent of its staff within the country in the process, reports The Wall Street Journal. The reduced demand and the high costs of running the facility mean that the Las Pinas plants products “are not competitive in the marketplace,” according to Pierre Cohade, Goodyear Asia-Pacific regional president.

The closure will happen at the end of the current quarter, with 500 out of the 600 Philippines workers laid off. According to reports, the company’s sales and marketing departments will remain unaffected. As previously noted on Tyrepress.com, Goodyear plans to cut much of its worldwide capacity over the next two years, and this latest closure will account for 2 million of the 15 million units of annual production due to be shed. The Wall Street Journal report concludes that Goodyear will record approximately $20 million in charges as a consequence of the closure.

17th July 2009/by Tyrepress Editors

TIA Seeks a Presidential Thumbs-Down on Proposed Tariffs

The Tire Industry Association has reiterated its position regarding Chinese tyres and duties upon them in a letter sent to US President Obama. The TIA has urged the President to reject the recommendation for duties of up to 55 per cent on passenger car and light commercial vehicle tyres, as voted upon by the US International Trade Commission on June 29. A copy of this letter was also sent to the United States Trade Representative Ron Kirk.

In the letter, the TIA argued that the ITC proposed tariffs will not protect US manufacturing jobs and will result in higher prices and fewer choices for customers. It also addressed the possibility of safety issues arising should consumer access to affordable tyres be restricted.

14th July 2009/by Tyrepress Editors

Lithium-ion Battery Development Wins Award for Conti

Continental claims the lithium-ion batteries it has developed offer significantly greater storage capacity compared with the nickel-metal hydride battery technology still currently used in hybrid vehicles. The battery’s energy density is said to be around 30 per cent and its power to size ratio some 50 percent greater, while still retaining its compact dimensions. Development work on this unit, which saw its series production debut in the latest Mercedes-Benz S 400 BlueHYBRID, took place at Continental’s Nuremberg, Germany facility, and the site now has a production capacity of 15,000 units per annum. Recently Conti’s Powertrain Division and its Hybrid & Electric Vehicles business unit were acknowledged for the battery’s development and series introduction with an award from a logistics and transports association located in the factory’s local region.

13th July 2009/by Tyrepress Editors

Serious Fraud Office Called Following MG Report

The Serious Fraud Office has been asked to consider whether there should be a criminal investigation into the collapse of MG Rover, after an inquiry into the demise of the MG Rover Group on in April 2005 owing creditors nearly £1.3 billion.

6th July 2009/by Tyrepress Editors

Social Measures for Conti Clairoix Employees Outlined in Agreement

On Friday June 25 the four parties involved in talks over Continental’s Clairoix tyre factory in France met in Paris to sign an agreement on the course of future negotiations. Representatives from the French Government, Conti’s French and German management and employee representatives signed their names on a document based upon the preliminary agreement concluded on June 6. The signing of this agreement is, says Continental, an “important step for all the employees as this document includes the main negotiated social measures of the jobs safeguard plan” as well as the details of their implementation.

29th June 2009/by Tyrepress Editors

Michelin Workers Strike Against Noyelles-les-Seclin Plant Closure

Michelin’s Noyelles-les-Seclin factory in northern France was reportedly brought to a standstill on June 29 by striking workers protesting against plans to close the site next year. This news was published by the AFP press service based upon information provided by Force Ouvrière union delegate Gilles Cocquerez; according to Cocquerez, ninety per cent of staff at the plant near Lille went out on strike, and between 150 and 200 people staged a march through the town centre. A spokeswoman for Michelin confirmed that the factory’s production had indeed come to a halt.

29th June 2009/by Tyrepress Editors

Up to 3,500 Michelin France Jobs to Go by 2011

A Michelin spokeswoman stated on June 25 that the company may cut up to 3,500 jobs from its French workforce over the next couple of years. The spokeswoman, quoted by Reuters, said “when you add up the 700 job cuts already announced when we closed our plant in Toul, the 1,093 job cuts of last week and an estimate of our workforce needs by 2011, which we see down 650 to 1,700 jobs due to productivity gains, we reach that figure of 2,400 to 3,500 jobs.”

The spokeswoman added that union representatives were informed of this estimate during a meeting on June 24.

25th June 2009/by Tyrepress Editors

Klarius’ Cheadle Plant Returns to 5 Day Week

Klarius, the UK-based manufacturer of the TIMAX brand of exhausts and catalytic converters, has returned to a five day week and is reporting increased export sales. The announcement follows investment of over £1.2million in UK manufacturing and R&D over the last 18 months. Klarius was bought from US owners ArvinMeritor LVA in August 2007. After some redundancies last year, the company started employing new staff again in January this year, with the 10 new jobs created said to support growth from increased exports into Europe.

25th June 2009/by Tyrepress Editors

Reports: Lenders Set to Oppose Continental/Schaeffler Combination

Banks responsible for as much as half of Continental AG’s 11 billion euros ($15.5 billion) of debt are reportedly going to oppose the company’s proposed combination with 90 per cent shareholder Schaeffler Group. Citing “people familiar with the situation,” Bloomberg reported that the banks are concerned about the levels of debt necessary for the two companies to re-merge. According to the report, the banks are trying to half the move by blocking changes to a loan agreement first reached in 2007. The two companies have combined debts of around 24 billion euros.

Neither Continental, Schaeffler nor the banks involved have yet commented. However, for all the banks fears and apparent threats to de-rail what is expected to become a reverse takeover, with less than 100 days before the German general election, government support for the move (and the thousands of jobs that depend on it) have the potential to make the re-merger work. Continental executives are expected to officially reveal their plans at the end of July.

24th June 2009/by Tyrepress Editors

Michelin to Open India Factory Within 3 Years, says Rollier

India’s commercial vehicle radial market has long been a sleeping giant, and Michelin is determined to be around when it wakes up. Comments made by group managing partner Michel Rollier point to the company’s eagerness to set up its new factory there within a short timeframe.

“We hope the factory will open within three years,” Rollier told Europe 1 radio. Production at the new facility will focus upon truck and heavy engineering tyres, a sector “where the Indian market is promising and we are virtually absent.” Rollier added “we don’t want to miss the take-off of the Indian market.”

22nd June 2009/by Tyrepress Editors

TIA Voices Opposition to Restrictions on Chinese Consumer Tyres

In a statement released on June 17, the Tire Industry Association has claimed the USW initiated petition currently before the US International Trade Commission (ITC) will neither benefit consumers nor help preserve manufacturing jobs in America. While the TIA refers to the proposal under consideration by the ITC as “well-intentioned”, the organisation believes it to be one that will bring severe financial harm upon many retailers and motorists by restricting the availability of affordable tyres.

18th June 2009/by Tyrepress Editors

Michelin to Invest £887 Million in India

It is cutting back in France, yet planning big in India – Michelin is reportedly planning to invest some Rs 70 billion (£887 million) there over the next decade. The Economic Times newspaper states a person directly involved in the transaction informed it that the tyre major has sought government approval to acquire a 100 per cent share in Michelin India Tamil Nadu tyres, a company formed in April 2009. This company will be responsible for establishing a greenfield production facility; the site will be set up with an Rs 40 billion (£507 million) investment in the first phase, which runs until 2016. This first phase operation is anticipated to create 1,500 jobs, and eventually half the factory’s output will be exported.

18th June 2009/by Tyrepress Editors