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Who can resist a tale of romance, even – or, indeed, especially – when it is horribly misguided and involves stolen tyres? With the noblest of intentions in mind, namely to impress their girlfriends, six young men from well to do families in India recently embarked on a life of crime, stealing motorcycles from wealthy relatives and then selling the tyres and other spare parts.
Investment banks B. Metzler seel. Sohn & Co Holding AG and Merrill Lynch have bought shares equating to a combined voting stake of 35.75 per cent in Continental AG. According to a Reuters report, Metzler has built a 19.5 per cent voting stake, while Merrill Lynch International holds 16.25 per cent. The two companies are now the largest shareholders after Schaeffler Group (49.9 per cent). On 22 December 2008 Metzler and Sal. Oppenheim bought stakes of 4 per cent and 5.5 per cent each.
A number of tyre makers have reportedly opted to settle their Asian butadiene rubber (BR) contracts on a monthly basis amidst weak demand causing a volatile pricing environment. According to a news report published on icis.com, BR contracts in Asia are usually settled on a quarterly basis. “BR January spot prices have plunged to around $1,100/tonne (€836/tonne) CFR (cost and freight) Asia, down by more than 70 per cent from its peak of $4,000/tonne CFR Asia in the fourth quarter last year,” the website reported.
“By April, there will be a clearer price direction but certainly in the first quarter of this year, prices are expected to fall further to around or below $1,000/tonne CFR Asia,” the website quoted one Indian tyre manufacturer as saying.
German Chancellor Angela Merkel yesterday (13 January) announced a 50 billion euro package of measures designed to give the country’s economy a financial stimulus. One key measure sees the German government offer motorists 2500 euros to trade in over 9 year-old cars for new or 1 year-old vehicles. With 40 per cent of the German car parc (46 million vehicles) fitting into this category, Deutsche Bank analysts suggested that the measure could have a significant impact on automotive demand. This, in turn, is likely to impact replacement tyre sales.
“If 2 per cent (the estimated participation in the French scrappage scheme) were to take up these incentives, it implies a 12 per cent gross impact on demand (vis-à-vis 08 levels)…Given the substantially increased age of the parc, our current estimate of 2.8 million vehicle sales in 2009 (versus 3.1 million in 2008) might well prove too pessimistic,” the analysts commented. Deutsche Bank’s predictions are based on the assumption that the proposed measures get implemented quickly. This means a swift approval from Germany’s second house, the Bundesrat.
Goodyear Dunlop UK has announced the combination of its Farm and OTR department with its Truck department. As part of this change, Andy Morris, who was previously the director of Farm and OTR, will take on the new role of commercial sales manager. Morris is a 33-year Goodyear Dunlop veteran, and the company notes that he led the Farm department into a profitable position, crafting a skilled and specialised sales team.
Continental Tyre Group has announced a number of changes within its commercial management structure, changes the company says utilise current expertise and commitment to further strengthen its position in the UK market. Barry Guildford, previously a member of Continental’s Industrial division, joins the truck team as general sales manager – Truck Replacement. Guildford has an extensive background in truck marketing and more than seven years’ experience within the Continental group.
Bridgestone Australia is not allowing itself to be drawn into speculation over the future of its factory in Salisbury, South Australia, and instead has expressed its optimism about 2009. Following news published by Australia based business information analyst IBIS World that tyre manufacturing is an industry in which job losses are most likely this year, Bridgestone’s public relations company Michels Warren said the tyre maker “did not want to add any weight to the story”, and released a statement saying the company remained positive about this coming year.
Pirelli Tyres has crowned Tyres Northampton as its Pirelli Performance Centre (PPC) of the year for the second year running. The award is the culmination of a four month assessment programme which included the PPC technical audit followed by an onsite video “mystery shop”. The PPC technical audit covers a wide spectrum of areas including working practices, standard and maintenance of equipment, housekeeping and tyre/wheel removal procedures. In contrast, the video “mystery shop” focused on the consumer experience and levels of customer service.
After five weeks of lock out conditions at the factory under lease to Apollo Tyres, plant management and union representatives appear to have made little or no progress in resolving their differences. A January 7 meeting conveyed by the labour minister of India’s Kerala state, PK Gurudasan, broke down when the two parties could not reach a consensus on the list of 12 items management views as essential for the factory’s ongoing viability. Union representatives agreed to consider just three, and said the remaining proposals would be discussed only after the lockout was lifted.
Starting in April, an extensive range of Bridgestone’s Turanza ER300 Ecopia tyres will be gradually introduced into the European market. The tyres, which use the ‘Ecopia’ name to denote their fuel saving characteristics, were first used on electric-powered cars in 1991, and in 1998 the B381 Ecopia low rolling resistance tyre was fitted as OE to the ‘3-litre’ version of the Volkswagen Lupo – a car dubbed “the most environmentally friendly car in the world” by some due to its consumption of only three litres of fuel per 100 kilometres. Today, certain versions of the Vauxhall/Opel Insignia and Mercedes S-Class are being sold with Ecopia versions of existing patterns, and the Toyota IQ is fitted with an all-new Ecopia tyre.
The shorter working week implemented at Goodyear’s truck tyre factory in Luxembourg is being extended beyond the time originally specified. Between February and April production will only take place four days a week, commented a company spokesman.
The high regard in which Tyrexpo Asia is held by the Singapore government has been recognised by the announcement that the country’s Minister of State for Trade and Industry, Mr Lee Yi Shyan, will officially open the exhibition as Guest of Honour at the Singapore Expo Centre on Tuesday, 24th March this year.
Ministerial endorsement of the show has been warmly welcomed by organisers ECI International, with managing director Paul Farrant commenting: “We are extremely grateful to the Minister for agreeing to be our principal Guest of Honour; his involvement will add to the sense of occasion at the opening event as well as signifying the economic importance the Singapore government attaches to the expo.”
An article published by the Detroit Free Press states Continental AG expects to reduce its North American workforce by approximately 10 per cent this year. This information was obtained through an interview with the North American unit’s CEO Samir Salman, indicates the Detroit based daily.
On January 14, Continental AG announced a partnership with Emirates for Universal Tyres LLC for the distribution of passenger and light truck tyres as well as commercial vehicle tyres in the United Arab Emirates. These activities are to be coordinated from the representative office of Continental’s new MENENA business unit, which focuses upon business development in the Middle East and the North Africa region.
The new managing director taking the reins at Bridgestone’s Austrian operations, Bridgestone Austria GmbH, is perhaps a familiar name to many in the UK tyre industry. After twelve years in the job, incumbent managing director Michael Glockner is moving on to a Brussels based position with the Japanese tyre major. In his place comes 35-year old Andy Davies, who began his career with Bridgestone UK in 1996 before making the cross channel move to a position within Bridgestone Europe in 2001.
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