More Tyres Sold By Michelin In North America Than in Europe
For the first time the volumes of Michelin tyres sold in North America (incl. Mexico) exceeded those sold in Europe.
North America
For the first time the volumes of Michelin tyres sold in North America (incl. Mexico) exceeded those sold in Europe.
Goodyear and retreader/truck tyre dealer Treadco have announced the formation of a joint venture company, called Wingfoot Commercial Tire Systems. Ownership is 60/40 Goodyear/Treadco. Wingfoot will be the world’s largest network of cv tyre outlets and truck tyre retreading facilities, with coverage coast-to-coast.
Superior Industries Int., North America’s leading manufacturer of original equipment aluminium wheels, has decided to repurchase 4 million of its 26.1 million outstanding shares. New orders of more than $ 350 million in the last twelve months has allowed an aggressive expansion of capacity, but the positive developments are not reflected in Superior’s stock price.
Uniroyal S.A. Mexico, daughter company of Michelin North America, has confirmed the closure of their two factories in Tacuba and Queretaro. 760 employees are affected and will receive a severance package. Uniroyal Mexico says that it was not possible for the two factories to produce tyres cost-effectively and the company was losing money, while imported tyres were making a profit. Other possible reasons for the closure, for example political or environmental reasons, were strongly denied.
Michelin has released its financial results for the first half of the year, confirming the disappointing message given earlier. Turnover was 7,377 m Euro (first half of 1999: 6,488) and operating profit 540 m Euro (596). Increased raw material costs and a weak Euro were blamed as contributing factors, but Michelin says that the results do not fully reflect progress made in increasing competitiveness.
Goodyear announced that it is to be the official tyre supplier to the Canadian CASCAR Castrol Super Series, underlining the company’s commitment to stock car racing. Special Eagle tyres were developed in Akron and manufactured at the company’s racing tyre plant in Chile.
Superior Industries (Van Nuys/California), North America’s Leading oe supplier of aluminium wheels, announced record revenues of more than 331 m US-$ (+13.5%) and record net income to more than 40 m US-$ (+16.3%) after tax.
Automotive hose manufacturers Phoenix and Goodyear Engineered Products have agreed to use each other’s factories to meet increasing demand on a global basis. Phoenix has six plants in Europe and GEP has six in North America and Mexico. The companies expect to expand the agreement to cover Asia and South America.
North America’s Accuride Corp. (Evansville/Indiana) is an enormously profitable producer of steel and aluminium wheels for trucks and recorded a record jump in sales to more than 500 million US-$ in 1999. Founded by Firestone in 1905, the company was sold in 1986 to Phelps Dodge Corp., cooperated with Goodyear 1992 and was sold again in 1998 to investment group Kohlberg, Kravis and Roberts (KKR). Now the automotive supplier has its eyes set on the European market for investments, maybe also in aluminium wheels for cars.
Bill Sharp (59) has retired suddenly on July 14th after 36 years of Service for the tyre maker. His successor, John C. Polhemus (56) used to be President of Goodyear’s Latin America region. Marco Molinari, currently Vice President Marketing and Sales North America, becomes Vice President Global Marketing Projects. Jim Vogel, currently Director Corporate Accounts North American Tire, becomes Vice President Marketing and Corporate Accounts for North America.
The Cooper Tire & Rubber Co. has reorganised its Tire Group, naming three divisional presidents. Mark Armstrong is president of the North American Tire Division. D. Richard Stephens is president of the International Tire Division and Larry Enders is president, Commercial Products Division.
Michelin has long been established as a leader in the European truck tyre retreading market with its famous Remix process, but now the French company has turned its attentions to the US retreading market, where it is causing quite a stir. The size of the market is enormous; according to the Tire Retread Information Bureau, in 1999 there were 18.1 million large truck retreads sold, compared with 15.7 million new truck tyres, and Michelin has announced its intention to double its market share, from 10.2% to 24.6% by the year 2002. The company has done this not through using the Remix process, but by cold cure retreading, forming Michelin Retread Technologies Inc. (MRTI) and signing up licensees. By March, Michelin had 37 such franchisees signed up and expects this figure to increase to fifty by the year end. As a comparison, Goodyear has some 167 truck tyre retreading partners in North America. Michelin’s cold cure retreading process is called Recamic and it uses rubber produced by Michelin. Like Remix, Recamic is promoted as a premium product. For those retreading partners who may be looking for something a little cheaper, Michelin produces Newlife, a less expensive alternative. The article in May’s TYRES & ACCESSORIES examines Michelin’s commitment to retreading, both in Europe and outside, and looks at the retread market itself.
Degussa-Hüls AG, the world’s second largest carbon black manufacturer, with production sites in Europe, North America, Africa and Asia, has agian announced a price increase of 50 Euro per metric ton for its range of rubber blacks, effective from September 1st, 2000, in Europe. A continuing combination of the weakness of the Euro and unprecedented high prices for crude oil and crude oil products is leading to substantially higher carbon black production costs.
German company Degussa Hüls is building what it says will be one of the most modern industrial carbon black plants in the world at Paulinia, near Sao Paulo, Brazil. Production will begin in early 2002 and initial annual capacity will be 60,000 tonnes. Degussa Hüls says the new site will strengthen its role as a global partner of the rubber industry.
DaimlerChrysler has announced it will be fitting Goodyear Eagle tyres on its new PT Cruiser. The PT Cruiser, which combines the retro styling of the late 1930’s sedan with the versatility of a 2001 minivan, will be shod exclusively with Eagle LS tyres in North America and Eagle NCT5’s in Europe.195/65 15’s will be fitted on the front and 205/55 16’s on the rear. Tyres with European specification will be produced at Fulda and Phillipsburg.
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