(Akron/Tire Review) A new study by the Polk Center for Automotive Studies reveals that American consumers may not yet be sold on the idea of hybrid vehicles, despite fast-rising gas prices. The primary reason for their hesitation? Their feeling that there are added costs connected to hybrid technology.
Michelin subsidiary Pneu Laurent has terminated the production of passenger car retreads at its Avallon factory in France. The decision comes exactly 50 years after the company first entered the business. The company’s sales figures have decreased in the past few years due to the low prices of new tyres, particularly those coming from the Far East.
Pneu Laurent maintains that every one of the 22 workers involved in the division will be relocated within the company. It is not the first company to withdraw from the segment and follows Reiff Reifen, which has also ended the production of passenger car retreads due to the declining trend in the market.
Monbat may not be a well known brand in the UK at the moment but according to the company all that is about to change. The brand has been driving sales across Europe and having signed a contract with Squadron Batteries earlier this year the UK is Monbat’s next target.
Partly owned by Texaco Chevron, Monbat has been manufacturing batteries for over 45 years. The company specialises in heavy duty, high specification batteries for rail and military applications, as well as manufacturing UPS batteries for the telecom industry. Its car and commercial vehicle batteries are produced in the same manufacturing facility and to the same quality standards says the battery manufacturer.
Australia’s Ansell Ltd has slashed the value of its tyre-making joint venture with Goodyear Tire & Rubber Co by more than half, citing the impact of an influx of cheaper imports and rising raw material costs. In a move largely factored into analysts’ estimates, Ansell said it plans to write down the carrying value of its investment in South Pacific Tyres, or SPT, by $80 million Australian dollars to about A$58 million.
(Akron/Tire Review) JD Power/LMC Automotive Forecasting Services predicts that new vehicles powered by hybrid electric or clean diesel engines will garner 11 per cent of US sales by 2012. Currently, such vehicles hold a 4.8 per cent market share, said the firm.
(Akron/Tire Review) Yokohama Tire Corp has announced “across the board” price increases on its OTR tyres. The increases, effective July 15, will range from 5 per cent to 8 per cent, the manufacturer said. Yokohama cited escalating petroleum-derived material costs, energy and freight costs as well as social cost adjustments as reasons for the increases. Detailed pricing will be provided to dealers prior to the increase, Yokohama said.
(Akron/Tire Review) By 7 June, natural rubber prices had risen to a 12-month high of $3.12 a pound on the Tokyo Commodities Exchange. Tyre output in China rose 27 per cent, to 239 million units last year, and the country’s tyre exports nearly doubled, to 34.8 million units.
At the same time global manufacturers continue to purchase more natural rubber as its synthetic counterpart becomes more costly, according to experts monitoring the data. Data reported by Bloomberg, for example, indicates that US Gulf spot prices for butadiene, the petrochemical used to make synthetic rubber, have risen 93 per cent, to 57 cents a pound over the past year.
Automotive air conditioning specialists Autoclimate claim that garages are missing out on valuable profit opportunities by not offering an in-house air conditioning service and repair facility.
This is partly due to a misconception that air conditioning is both tricky and hazardous to repair, with mechanics facing a potential risk of frostbite. This view is both outdated and erroneous, says Autoclimate, with better equipment design and new and impending legislation having eliminated any such risks.
(Akron/Tire Review) Bandag Inc is increasing prices on “most of its retreading materials” for North America, the company has announced. According to Bandag, all tread rubber products in the US will increase by a per-pound weighted average of 12 cents (US). In Canada, the increase will be 17 cents (Canada). Both increases take effect on 1 May. Bandag officials said that increasing raw material costs cannot be offset by increased efficiencies or productivity.
‘Balanced Scorecard’ is a new customer and employee safety policy that has been rolled out by ATS Euromaster. The scheme rewards employees for meeting key performance indicators in all areas of the business operation with priority given to health and safety performance, customer satisfaction levels and operational excellence.
Nick Gregg, ATS Euromaster MD commented on the new scheme: “Balanced Scorecard will completely refocus our business on meeting the needs of our customers through a first class service delivered safely and efficiently. It is our aim to transform ATS Euromaster into the vehicle service sector leader with centres of excellence for customer and employee care across the UK.”
(Akron/Tire Review) Automortive and commercial truck component maker ArvinMeritor said it will consolidate 11 of its manufacturing plants this year in a move to cut costs. The expected plant closure will result in a reduction of hundreds of salaried and hourly jobs. Most of the labour cutbacks are expected to come from its automotive product unit, where costs and margins remain depressed.
JK Tyres is planning to expand the production capacity of its Banmore, Gwalior facility in Madhya Pradesh. According to India’s Business Report, the company will invest 2 billion rupees (roughly £24.2 million) over the next three years in the expansion. The company has reportedly already invested 700 – 800 million rupees in the facility.
In addition to the expansion plans, the company also intends to set up another plant in the area. The announcements come despite a dip in Indian tyre industry profits due to increasing raw material costs.
The Cambridge-MIT Institute’s Centre for Competitiveness and Innovation (CCI), at the University of Cambridge has published a 33-page report investigating the final collapse of the MG-Rover in April 2005. Report authors Dr Matthias Holweg and Professor Nick Oliver investigate the final collapse of MG-Rover in April 2005, and address two main questions. First, what were the reasons for the final collapse, and was this avoidable? Second, who or what was responsible for the circumstances that put MG Rover in such a precarious position, and what critical choices sealed the fate of Rover?
Pirelli Tire North America will increase prices for its passenger and light truck tyres by 5 per cent. The price increase with be effective from 1 June in the US and Canada. Pirelli is the latest in a string of price increases from major manufacturers in the US.
Michelin has released fist quarter results that show the company’s net sales have “stabilised” in value terms. The weakening dollar is said to have contributed to the 0.2 per cent drop in sales to 3.61 billion euros against the same period last year.
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