North America
Tire Review reports today that Michelin North America (Canada) Inc. will increase truck tire prices as of 1 February, 2009. Pricing on Michelin brand medium truck tyres will be raised by up to 5 per cent, while BFGoodrich medium truck tyres will see a rise of up to 6 per cent.
Toyo Tire & Rubber has promoted three members of its US corporate team, effective January 1. New in the position of chairman at Toyo Tire Holdings of Americas Inc. is Carlos Kibata, who has worked for Toyo for more than 37 years. Before accepting this latest post, Kibata served as president of subsidiary Toyo Tire (U.S.A.) Corporation, president of Toyo Tire North America Manufacturing Inc. and most recently, president and CEO of Toyo Tire Holdings.
Bridgestone Corporation reports that the financial crisis and resultant global economic slowdown has created a necessity for it to revise the consolidated financial projections for the fiscal year ended December 31, 2008 that were originally announced on August 8. These downward changes have mostly been caused by decreasing tyre sales in Europe and North America, the company says.
The report published by Morgan Stanley Research Europe says it all: “If investors thought tyre data was poor in October, it just got worse…” What this memorable sentence refers to is data released by Michelin on December 18, which shows the supposedly more resilient passenger car tyre replacement market to be down in Europe 10.3 per cent in November, and in North America by a hefty 20.2 per cent. OE sales in the segment dropped a spectacular 33.5 per cent in Europe and 31.2 per cent in North America.
The 30,000th flow meter produced by specialist flow meter maker Litre Meter is being used by tyre manufacturer Michelin to measure water spray. The LMH Pelton wheel flow meter was shipped to Michelin for use in its rubber mixing operation in South Carolina. Rubber is mixed to the exact ratio required to make tyres for the automotive industry. The meter forms part of a spray system that is used to jet hot water onto the rubber mixture to maintain a constant temperature as it passes through the production line. It precisely measures the amount of water passing through the spray system in order to ensure consistency.
Fred Tienken, mechanical design engineer at Michelin North America, said: “We use Litre Meter flow meters throughout the rubber mixing process. It is essential that the water flow rates in our spraying system are kept constant and the Pelton wheel flow meter enables us to achieve this.”
Pirelli has been named the official tyre supplier for the 2009-11 Volkswagen Jetta TDI Cup, the first zero-carbon racing series in the world. The Volkswagen Jetta TDI Cup was founded in 2008 and is comprised of 30 factory-prepared and managed 2009 clean-diesel Jetta TDIs piloted by relatively unknown talented drivers aged 16 to 26. Volkswagen’s goal is to find drivers with the most talent and help them break into the world of professional motorsports.
“Pirelli is very excited to be the exclusive tyre supplier to the 2009 Volkswagen Jetta TDI Cup, the world’s only carbon-free racing series,” said Rafael Navarro, Pirelli Tire North America’s director of motorsport and media communications. “This series is a very important part of our motorsport growth in North America as it provides a platform to introduce young developing talent to our brand while reducing the impact motorsport has on the environment.”
The series kicks off with a driver selection event on 1-4 February. Races will begin 24-26 April at Infineon Raceway in Sonoma, California, making stops in Ohio, Virginia, Illinois, Wisconsin, Ontario, and New Jersey before the series wraps up at Road Atlanta on 25-27 September. (Tire Review/Akron)
SmarTire Systems has signed a definitive agreement to sell its business and related assets to Bendix Commercial Vehicle Systems LLC, the North American affiliate of Germany’s Knorr-Bremse Group. The December 10 transaction immediately incorporates SmarTire’s assets into Bendix’ electronic business unit, and proceeds from the sale will be held in a third party account subject to SmarTire obtaining shareholder consent at a meeting to be held in March, 2009. The company says it expects to apply all, or a substantial proportion, of the proceeds from the sale against its debt obligations. Following the transaction, SmarTire will change its name to TTC Technology, Inc.
Cooper Tire’s four factories are still awaiting the company’s decision regarding its review of US operations, and each is naturally eager to place itself in the best position in terms of its long-term viability. Hot on the heels of the ratification of an agreement between Cooper and the USW regarding the Findlay, Ohio facility comes one for the factory in Texarkana, Arkansas. Cooper Tire announced on December 11 that it had reached a new tentative agreement with the USW Local 752L, which represents workers at the facility. Union members will cast their votes on the agreement on December 13. The USW chapter is currently working under an agreement that would not have expired until 2010.
Continental AG reports the company is drawing what it calls ‘further necessary consequences for the closing fiscal year 2008’ following an extensive analysis of the substantial negative development that has taken place in the automotive industry in the six weeks to December 10. At the same time, the company is adapting operational measures for 2009 to the industry’s predictably poor economic environment. A cost-cutting programme, said by Conti to be in the ‘high three-digit millions range’ has been initiated; this programme includes the postponement of investments as well as the stretching of expenditures in the area of research and development.
Continental Tire North America launched a new environmental program tied to reduction in tyre rolling resistance and reduced production emissions. The program – Continental Tire Responsibility – extends the company’s efforts at improving tyre-related fuel efficiency and cuts its use of resources while cutting CO2 emissions. According to Andreas Gerstenberger, CTNA executive vice president of sales and marketing, by 2012, the company is committed to reducing energy consumption by 18 per cent from 2007 levels; water usage by 17 per cent; waste by 16.3 per cent and CO2 emissions by 15.5 per cent.
“We are continually aligning the production, quality and performance of our products with environmental soundness, and we strive to conduct all of our activities in an environmentally conscious manner,” he said. “Going forward, each and every employee is obligated to protect the environment, and we will continue to avoid harmful emissions and waste. Continental is not just focused on a green message but a responsibility message which encompasses community, environment and fuel efficiency.” (Tire Review/Akron)
To mark the passing of two million work hours without a single serious injury amongst employees, Michelin North America’s truck tyre factory in Spartanburg, South Carolina was recently presented with a Michelin Global Safety Award. The facility thus becomes one of only four Michelin plants worldwide to earn this distinction. In a ceremony at the factory, Pete Selleck, president of Michelin’s worldwide truck tyre business and member of Michelin Group Executive Council, presented the award to plant manager, Tom Whalen.
Continental Tire North America said it will raise truck tyre prices in Mexico at the start of the new year.Its unit there, Continental Tire de Mexico, S.A. de C.V., will raise medium truck tyre prices by up to 8 per cent beginning 1 January, 2009. (Tire Review/Akron)
Alliance Tire USA has appointed James Tuschner to the role of marketing director and Michael Aguon territory manager for the company’s eastern region.
“He (Tuschner) is helping us establish a new warehouse in the United States, create new strategies with innovative dealers, and distributors and broaden Alliance’s footprint in North America,” said Alliance Tire USA president Manny Cicero. Prior to joining Alliance Tuschner held a marketing role with Denman Tire Corporation.
The Board of Directors of the European Automobile Manufacturers’ Association (ACEA), has elected Carlos Ghosn as its new president. Ghosn, CEO of Renault, will take over from Christian Streiff, CEO of PSA Peugeot Citroën, on 1 January 2009. Ghosn, whose extensive experience in the industry includes some two decades with Michelin, has held in current position as president and CEO of Renault since 2005.
“The global automotive industry is facing two significant challenges with a severe financial meltdown twinned with an economic recession, and a major transition to low-emission vehicles. In this context, an effective dialogue with EU institutions and governments is more important than ever”, said Ghosn, reflecting on the expected priorities of his term as ACEA president. He reiterated the automotive industry’s call for normalisation of credits markets, financial support to strategic investments and a range of national incentives to boost the market. “It is vital that our industry can keep fulfilling its key role in Europe in terms of growth, investments, employment and technological leadership.”
At least 10 salaried employees and 148 hourly workers at Bridgestone Firestone North American Tire’s LaVergne, Tennessee facility will be laid-off from 21 December. This round of festive season redundancies will shrink the workforce at the passenger car, light truck and truck and bus tyre factory by almost 10 per cent.
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