North America
The latest tyre market data published by Michelin is being read as a warning signal by market analysts. The figures, which reflect demand trends in December and for 2012 as a whole suggest tyre sell-in unit volumes were weak. European light vehicle replacement sales, specifically, continued to slip (-7%), despite falling 19 per cent year—on–year in December 2011. Overall this is being interpreted as a response to a poor winter tyre season.
Some 1,700 Continental motorcycle tyres sold in North America are the subjects of a voluntary recall. Based upon market feedback it has received, the tyre maker says that under certain service conditions the size 180/60R16 M/C 74H ContiMotion may experience uneven wear, groove cracking and in some cases belt lift, which can lead to a loss of inflation pressure and a potential loss of control. These service conditions have been observed on the rear tyre of Honda Gold Wing 1800 motorcycles, particularly under conditions of overloading and/or under-inflation. Continental adds that has not received any reports about accidents resulting from this condition.
Double Coin Holdings’ US-based subsidiary, the China Manufacturers Alliance (CMA), has appointed Ken Coltrane vice-president of its consumer tyre business. Coltrane brings almost two decades of tyre industry experience to his new role; most of his tyre industry career was spent at Del-Nat Tire Corporation, where he held positions in export, purchasing, and also served as the company’s vice-president of marketing.
A CDN$73 million (£46.3 million) investment for Michelin’s Waterville truck tyre factory in Canada will increase capacity over the coming four to five years. Michelin North America says the Waterville plant will make capital investments in equipment improvements and increased production capacity; the project will include the installation of new technologies in all aspects of the manufacturing process, supporting the success and continued growth of wide commercial vehicle tyres such as the X One. The project will include a 3,000 square metre assembly building expansion and Michelin anticipates the investment will create approximately 50 new local jobs.
The Goodyear Tyre & Rubber Co.’s Fayetteville, North Carolina plant has successfully filled the nearly 200 buyouts required to avoid layoffs. The company had announced the need to cut 200 jobs in Autumn 2012, offering staff the option to take buyout packages. Local news sources estimated around 135 employees’ buyouts had been completed on 16 January, with the staff leaving their jobs in phases.
Recent reports published by financial analysts suggest Goodyear could be forced to restructure its business in the Europe Middle East and Africa (EMEA) region.
Reporting on an investor’s presentation given in Detroit, Deutsche Bank market watchers relayed that Goodyear cautioned that financial targets established two years ago – specifically US$1.6 billion segment operating income by 2013 – would be “difficult to achieve if current European market trends persist”.
Goodyear is supplying some of the most vaunted vehicles at this week’s North American International Auto Show (NAIAS) in Detroit. The 2013 Ram 1500 and the Tesla Model S have been honoured in two very different categories, though Goodyear supplies the standard tyres on both models.
Several media outlets plus supporting information from Tyres & Accessories’ own sources are reporting that at least two private equity firms are preparing considering bids for Warburg Pincus LLC's majority stake in Alliance Tire Group (ATG). The potential deal is said to be valued at around US$400 million.
Apollo Tyres Ltd has opened a global R&D centre in Enschede, the Netherlands as well as a global branding centre in London, UK. Opened just days apart, the two moves follow earlier commitments to put European activities in the driving seat for passenger car tyre development and, in company chairman Onkar S Kanwar’s words, to fuse the company’s three cultures into one team. Hints towards increased OE activity and the potential of a more international investor base are also evident.
According to US media reports, Bridgestone Americas intends to increase production of giant mining tyres. Bloomington, Illinois-based newspaper the Pantagraph writes that the Bridgestone Americas Tire Operations factory in the jauntily-named town of Normal will benefit from two expansion projects; these will increase production by around 30 per cent and increase the factory’s workforce by more than 80 employees.
After four years as president of Kumho Tire North America, J.B. Kim is to return to Korea and head up the company’s original equipment sales division and Korean market replacement sales division. The position left vacant by Kim in the US will be filled by Hai Eok "Harry" Choi.
Italy’s Marangoni has given its Marangoni Tread North America subsidiary the company’s ‘President’s Award’ for 2012; the North American operation gained this distinction due to its strong sales performance plus manufacturing and marketing development.
US trade body Rubber Manufacturers Association (RMA) has reported that tyre shipments remained unchanged in 2012 at 284 million units, as an increase in OE shipments offset a decrease in replacement shipments. Furthermore, the association predicted a 2 per cent rebound in tyre demand during the course of 2013.
Trelleborg Wheel Systems has agreed to to acquire Maine Industrial Tire, a US-based solid tyres manufacturer. Maine Industrial Tire’s headquarters is in Massachusetts, US, while its production facilities are located in Pennsylvania, U.S., and Xingtai (Hebei), China. Annual sales amount to approximately 600 million Swedish Krone and approximately 650 people are employed in the company. The acquisition is expected to be completed by the end of 2012.
Those active in the US agricultural sector will benefit from a little TLC from Trelleborg. TLC – short for Trelleborg Load Calculator – is a new app for tablets, smartphones and computers. Trelleborg says the app, which is specifically adapted to meet the needs of the US market, has been developed to precisely calculate a tractor’s load per axle in order to determine the optimal tyre pressure for specific operating conditions.
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