Known for its style, speed and performance marketing values, Pirelli & C. S.p.A. is a multinational company based in Milan, Italy, listed on the Milan Stock Exchange since 1922, with a temporary privatization period by the consortium led by the Chinese state-owned enterprise ChemChina.
Pirelli and Benetton have joined together to win control of Telecom Italia and the mobile phone company TIM. Control was secured by a cash payment of 7 billion Euro to Bell for its 23 per cent stake in Olivetti; the company which controls TI. TI’s market capitalisation value is 55 bn Euro.
After only one year, Dr. Paolo Masera (59), boss of Pirelli Germany, has left the company to take over responsibility for Pirelli in Brazil. His successor is Dr. Klaus Betka, up till now production chief. Betka should only be regarded as a short-term solution for two or three years, as it is said that he has already signed a contract for early retirement.
In an interview with the German magazine Wirtschafts-Woche, Goodyear CEO Sam Gibara is reported as saying that Pirelli “would make a good fit” for Goodyear, if the Italian company was planning to sell all its tyre interests, rather than merely its truck tyre business. A subsequent statement from Goodyear says that Gibara’s comments were “misrepresented” and that he did not say that Goodyear was interested in acquiring any of the Italian manufacturer’s business.
Two years ago, Pirelli launched its “Winter Snowsport”, a tyre with an asymmetric tread pattern, for sports cars and high-powered saloons. The same technological basis from which the Winter Snowsport was created has enabled Pirelli to offer two new products, extending the same guarantee of safety that Snowsport gives to top-of-the-range cars, to other important motoring segments. On a glacier in Iceland, Pirelli launched the two new products. With 21 sizes for 13″ to 15″ diameter rims, the Q- and T-rated new directional “Winter Snowcontrol” will be available in all European markets. The tyre offers performance in all winter conditions, particularly on ice and snow, to all drivers of cars in the medium to medium-low segment. “Scorpion Ice&Snow” is an asymmetric winter tyre specially developed for sport utility and recreational vehicles, which provides excellent performance on ice and snow and is highly versatile on snow-covered off-road surfaces. The tyre is based on the Scorpion concept for the 4×4 market and will be available in nine sizes from 15 to 18 inches (8x T-rated, 1x H-rated).
Turnover for Pirelli SpA in the first half of the year rose by 9.7 per cent to 3.946 billion Euro (3.598 bn Euro for first half 2000). Profits rose too; operating profit before interest and taxes was up 14 per cent to 243 million Euro (2000 1H: 213 m).
Following Pirelli and Dunlop, also Toyo presents two 22 inch tyres: Proxes S/T is available in 305/45 and 325/40 with speed index V. As well as these extreme sizes Toyo has developed an even bigger size: 305/40 R 23 115V for typical pick-ups and sport utility vehicles (SUVs).
Pirelli’s cable and fibre optics firm has declined to comment on its position regarding a bid for Lucent’s fibre optic operation after the collapse of discussions on the proposed $23billion merger between Lucent and Alcatel.
The latest study by J.D. Power & Associates, measuring OE tyre satisfaction, puts Dunlop at the head of light truck OE tyres for the first time and Michelin tops for passenger vehicles, for the fourth year running. The study sought the views of more than 39,000 consumers in their first three years of vehicle ownership.
From the 1st January, Dr Paolo Masera (58) took over the responsibilities from his predecessor Dr. Wentz, who is the same age. A few years ago, Dr. Masera was Managing Director of Pirelli UK.
Bridgestone is to join Goodyear, Continental, Michelin, Cooper, Pirelli, Yokohama and others in raising tyre prices in the USA to compensate for raw material price increases. Effective June 1st, Bridgestone tyre prices will rise 4%. Historically, Bridgestone has taken advantage of other manufacturers’ price increases in order to gain market share, so this latest announcement seems to indicate that this time the price rises will stick.
Edouard Michelin, CEO of the French tyre giant, can see opportunities for technical alliances with competitors, a French magazine reports. As an example, he cites the new tyre and wheel system ‘Pax’, which will be presented jointly by Michelin and Pirelli in Geneva.
In an interview with the German publication Frankfurter Allgemeine Zeitung, Conti boss Kessel said that Pirelli would be an ideal partner for the tyre business, as this would produce significant synergies. To date, there has been no contact with the Italians over this matter.n According to Kessel, Continental need not fear any possible hostile takeover attempt because the car manufacturers would be very interested in maintaining competent and independent suppliers. In addition, the company could rely on strong backing from its individual important shareholders, such as Deutsche Bank, Dresdner Bank and Allianz insurance company, which together hold 16%. Kessel did not mention the fact that, in light of the low stock price, analysts had changed their minds last week and that most, if not all, of them do not regard Continental shares as a “buy” any longer. Hard times for Continental!
Sandra Farmand has won the Snowboard World Cup. Farmand is the promotional star for the “Pirelli Winter Snowsport” winter tyre.
Pirelli sold a 90% share (Cisco holds 10%) in the very young company Optical Technologies. OT has around 100 employees and a first half-year turnover of US$ 12 m. Turnover for the whole year is expected to be US$ 30 m. Optimistic observers speculated that the price would be around US$ 1 bn, while Pirelli in fact received slightly over US$ 3 bn (after tax) in cash. According to the management, acquisitions in the tyre field are unlikely, but it may be that Pirelli can bring forward the introduction of its MIRS system faster than expected. Pirelli is, and will remain, in partnership with Michelin and Goodyear to promote the PAX system.
Cisco has agreed to buy Pirelli’s Terrestrial Optical Networking Systems for US$ 2.15 bn and also plans to invest US$ 100 million to take a 10% stake in Pirelli’s Submarine Optical Transmissions. The Photronic Business accounts for a turnover of 395 million Euros.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
