Kumho Tire USA officially unveiled its new Ecsta XS KU36, an ultra-high performance radial designed for both track and street performance. The tyre was introduced to select media yesterday at Mid-Ohio Sports Car Course in Lexington, Ohio.
Kumho Tire USA Corp. has taken a $151 million credit line, arranged by GE Capital Corporate Finance. The Rancho Cucamonga, Calif.-based tyre company plans to use the line for working capital. GE Capital has worked with Kumho since 2006.
Ever struggled to explain the subtleties of tyre type, application and axle positioning to haulage customers? With economic conditions forcing more operators to simply ask how to make tyres cheaper, explaining the benefits of correct tyre selection has arguably as important as even. In the midst of this context company representatives recently explained how Kumho’s truck tyre range features a clear naming system for all new tyres – L for long haul, R for regional, M for mixed service. The position is signified by a letter – S for steer, T for trailer and A for all-position. Finally a two digit number (01, 02 and so on) shows the series.
The recent labour dispute Kumho Tire in South Korea ended peacefully after “marathon” talks concluded peacefully on Saturday 5 September at 21:00. At the conclusion of the negotiations, local newspapers report that union workers agreed not to receive 2008 bonuses and to negotiate 2009 bonuses in the first quarter of 2010. As a result of the mutual agreement, Jooang Daily reported that Kumho management’s called off previously announced layoffs – a fact emphasized union sources. It is not clear if this means all 733 workers who were to be laid off on 24 August will now be able to work again.
Jooang quoted Kumho Tire as saying that the average annual salary of the 4,200 employees who work the company’s production line is 70 million won ($56,600). The company also said more than 30 per cent of workers receive an annual paycheck of more than 80 million won.
Kumho Europe representatives have quashed rumours that the South Korean tyre manufacturer is negotiating with Bridgestone over the sale of its new Vietnam factory. Wi Yun, Kumho Europe’s marketing manager, told Tyres & Accessories the suggestions published by Jaccar Investment are “a completely wrong statement.” Dismissing the report as “rumours” Wi added: “There have never been any negotiations nor discussion concerning this matter.”
Kumho is in negotiations with Bridgestone to sell its recently finished tyre manufacturing plant in Vietnam, according to a report issued by Jaccar, a global investment firm. Kumho invested $155 million in the plant, which was completed in 2008 and has an annual production capacity of 3.15 million tyres. The tyre-maker has said it planned to export tyres manufactured in the Vietnam plant to southeast Asia, Europe and the US. Jaccar reported Kumho is negotiating the plant’s sale due to liquidity crunches resulting from the current “global financial turmoil.” (Tire Review)
The Korea Times has reported lockouts at three of Kumho’s facilities in South Korea. According to the paper, the company lockouts – the first Kumho has enacted in 15 years – began on August 25 in response to a union strike against its downsizing plan. Employee access to the Gwangju, Gokseong and Pyeongtaek facilities was blocked as of 4am on August 25, following 20 failed negotiation sessions.
It is alleged Kumho Tire will lay off 18 per cent of its workforce during September. According to South Korea’s Dong-a Ilbo (East Asia Daily), the tyre maker has filed an application to this effect with the Gwangju Regional Labour Office, and the country’s Labour Ministry stated on August 17 that Kumho will dismiss 706 employees on September 16. In its application, the company cited a number of reasons for its decision, including aggravating business conditions, rising accumulated deficits, and a lower operating rate at its factories due to declining profits. On August 10 Kumho began offering early retirement packages to employees. Only 20 workers have so far applied to take such an offer, however.
The red ink was in demand at Kumho Tire during the preparation of its second quarter 2009 results. The South Korean manufacturer posted a net loss of KRW 98.3 billion (£48.15 million) during the three months to June 30. Sales in this period were down 23 per cent year-on-year to from KRW 614.3 billion (£300.90 […]
In a press release that avoids mentioning the recent Park family tussle, Kumho Asiana has announced the official inauguration of the group’s fifth chairman. Chan-Bup Park, who is no relation to San-koo and Chan-koo Park, began in his official capacity following an inauguration ceremony in Seoul on the morning of July 31.
Production at Kumho Tire’s three South Korean factories resumed on July 27 following a three-day strike. Unionised employees took this action after the tyre maker said it would fire 706 workers – some 18 per cent of its workforce – if the labour union did not agree to proposals to freeze wages and reduce fringe benefits. The union has demanded a 7.48 per cent increase in wages and bonus payments.
While the dispute has not yet been resolved, union and management representatives have agreed to meet again.
On July 24 Kumho announced that its three South Korean factories will remained closed until July 26 due to strike action. Unionised employees went on strike earlier that day after talks with management on pay increases and further incentives ended in failure. In a regulatory filing Kumho said that its Gwangju, Gooksung and Pyungtaek plants will resume production on Monday July 27.
The National Highway Traffic Safety Administration (NHTSA) has announced Kumho Tire USA’s recall of 36,292 Mohave A/T light truck all terrain tyres. The recall is restricted to the sizes LT225/75R16, LT245/75R16, and LT265/75R16 produces between December 7, 2008 and June 13, 2009. According to the NHTSA announcement, vehicles fitted with these tyres may experience “difficult” handling performance when operated under loaded conditions or when changing lanes. This condition, the announcement adds, may result in the vehicle swaying, resulting in the possibility of a crash occurring.
Kumho will notify owners and replace the tyres free of charge. A safety recall is anticipated to get under way during July.
Even though construction of the plant is on hold, Kumho Tire USA Inc. has received a multi-million dollar state grant for the project. The OneGeorgia Authority board awarded Kumho with a $3.8 million grant for its planned tire plant in the city of White, Georgia. The funds are for site preparation and infrastructure improvements.
Earlier this year, Kumho announced that it was postponing construction of the planned tyre plant due to concerns over the economy. The company has not stated when work on the facility will restart. The OneGeorgia Authority is funded by the state’s tobacco settlement. (Tire Review/Akron)
Victory in the 19th Masters of Formula 3 race, fought out over the weekend of June 13 and 14, went to Finnish driver Valtteri Bottas. But the race, which returned to its ‘ancestral home’ of Zandvoort in the Netherlands after two years at Zolder, was also a victory of sorts for Kumho Tyres: The manufacturer supplied each and every tyre utilised in the meeting – about one thousand in total – continuing a support of the series that dates back to 2002.
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