Michelin Raising P/LT Prices
(Akron/Tire Review) Michelin North America said today that it is raising prices on all of its replacement market passenger and light truck/SUV tyres sold in the U.S. by 3 per cent. The increase will be effective Oct. 2.
Tyre industry pioneers, Michelin has a long history. Having begun in 1889, Michelin is now the second-largest tyre manufacturer in the world after Bridgestone and larger than both Goodyear and Contineantal.
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Michelin, Union Reach Tentative US Tyre Agreement
Product NewsMichelin and the United Steelworkers on Tuesday reached a tentative agreement on a new contract for hourly workers at three of its BFGoodrich tyre plants in the United States. Details of the agreements, which cover about 3,450 workers, will not be released until the union has completed ratification votes, Michelin spokeswoman Lynn Mann said. The contracts covering the Michelin union workers in North America were to expire at midnight on July 22, but both sides had agreed to temporary extensions while talks continued. The agreement covers two of Michelin’s BFGoodrich plants in Alabama and one in Indiana and is to be used as a template for contract talks with Goodyear Tire & Rubber Co. and Bridgestone Corp. in North America.
Michelin, Union Agree to Extensions; No Progress Elsewhere
Product News(Akron/Tire Review) The United Steelworkers’ (USW) master contracts with Michelin North America, Goodyear and Bridgestone/Firestone expired Sunday at midnight without incident and without a walkout by union workers. But twice over the weekend the union and Michelin agreed to extensions of their contract – one 24-hour extension on Saturday and a 48-hour extension on Sunday. The contract, which covers Michelin’s unionized plants in Tuscaloosa and Opelika, Ala., and Fort Wayne, Ind., is now scheduled to end at midnight on July 25.
Michelin Strike Possible; No Contract Extension for BFNAT
Product News(Akron/Tire Review) Unless significant headway is made, say news reports, union workers at three Michelin North America plants were planning to go on strike when their current contract with the tyremaker expires at midnight July 23.
Goodyear “Wants Dramatic Changes” – USW
Product NewsAccording to an article in the Akron Beacon Journal, Goodyear Tire & Rubber Co. is seeking dramatic changes in wages, job classification and benefits for thousands of union workers to save millions of dollars in North America, the United Steelworkers of America says. The tyre manufacturer and the USW are negotiating a new contract in Cincinnati, with the current three-year agreement expiring Saturday.
Ex-Tyre Workers Suing Chemical Suppliers
Product News(Akron/Tire Review) According to news reports, nine people who worked at the long-closed Uniroyal tyre plant in Eau Claire, Wis., are suing a number of chemical suppliers claiming that exposure to dangerous chemicals caused them to develop cancer.
Michelin Explores Indian OE Market
Product NewsMichelin is keen to enter the OEM (original equipment manufacturer) segment of the Indian passenger car and truck markets, according to the Indian press. This was made clear in an article with The Hindu recently, in which Herve Dub, Chief Executive Officer, Michelin India Tyres Private Ltd. said, “We are in discussions with some OEMs. There will be some good news on this front in 12 months,” he added.
Chinese Auto Market Set to Boost Growth for Bridgestone
Product NewsAccording to a report in the Shanghai Daily, the Bridgestone Corporation is looking towards the booming Chinese auto market to help maintain a 30 per cent growth in sales in China this year. “Chinese sales were up more than 30 per cent in 2005, and we expect the same increase this year,” said Hiromichi Odagiri, chief executive for Bridgestone China. “We have run quite well in the first half.”
Natural Rubber Price Falls
Product NewsThe price of natural rubber has fallen by 11 per cent from the peak reached a month ago, say analysts at the Deutsche Bank. However, at US$ 2.5/kg, natural rubber is still up 40 per cent year to date and 50 per cent more expensive than synthetic rubber.
Michelin Wins “Journal des Finances” Award
Product NewsMichelin has been awarded 3rd Prize in an annual survey of shareholder services of the companies comprising the CAC 40 index. The 2006 survey carried out by “Journal des Finances” gave Total and Société Générale 1st and 2nd prize respectively. This third annual survey found that 67.5 per cent of the forty companies in the CAC 40, provide a quality, shareholder-driven service.
BF Goodrich Confirms Rally Commitment
Product NewsBF Goodrich has confirmed its commitment to the FIA World Rally Championship in 2007, despite looking set to be the sole tyre supplier, following Pirelli’s decision to quit the series at the end of this season. BF Goodrich currently supplies all but one of the manufacturer-backed teams, namely the Subaru World Rally team, however, next season all the teams look set to use their tyres.
Pension, Labour Issues Weigh on Goodyear Credit
Product News(Akron/Tire Review – Reuters) Goodyear Tire & Rubber has made considerable progress on a North America turnaround, but looming pension liabilities, tough labour talks and high material costs are raising credit investors’ worries that further progress could be slow. Ignoring Goodyear’s strong rise in first-quarter earnings on 4 May, credit investors have sold off the company’s bonds, pushing prices lower over the past two months. Goodyear’s 7.86 per cent notes due in 2011 have fallen to 91.7 cents on the dollar from a high this year of 99.5 cents on 9 May, according to MarketAxess.
Michelin Brand Tyres Now Made in Mexico
Product News(Akron/Tire Review) Michelin brand passenger and light truck/SUV tyres are now being produced in Mexico for the very first time. Michelin North America upgraded its production facilities at its plant in Queretaro to allow Michelin-brand tyre production.
V*king Low Clearance Prices
Product NewsViking International has launched a summer tyre clearance across a wide range of stock. Thousands of sizes have been reduced to clear on premium brands such as Pirelli, Michelin, Continental and Bridgestone as well as selected lines in the company’s private brand range including Viking, Gislaved and Barum. According to the company the sale provides dealers “with an even greater profit opportunity.”
Michelin Restructuring in US?
Product NewsMichelin North America (MNA) says it will indefinitely layoff some 390 to 520 union workers at its 43-year-old Opelika, Alabama, tyre plant. The layoffs, said the company, are the result of a 30 per cent to 40 per cent production cutback at the plant which came about in response to the tough environment faced in the North American mass market segment.
