Production is back to normal after a fire at Hankook’s state of the art tyre factory in Kumsan, Korea. Details are sketchy, but it is believed that the fire started in, and was confined to, the mixing area, but production continued using materials brought from other factories. The effect on supply of product was minimal.
The Cooper Tire & Rubber company’s earnings per share for the first quarter of 2002 will be around 35 to 37 cents; significantly more than the previous estimate of 30 cents. This is due to an increase in market share and increased light vehicle production in North America. Full results will be published on April 18.
Morgan Stanley sees Continental Shares as positives at the end of the 17th Global Automotive Conference. Conti boss Manfred Wennemer had previously stuck to the goal of reducing debts and had announced that Continental was to buy the remainder of the Temic shares from Daimler Chrysler in the co ming month at a cost of 200 million Euro. When, as planned in the previous year, all five factories have been closed down, more than 50 per cent of Conti’s production capacities will be located in low wage-cost countries. After Wennemer’s statements in New York, some analysts, as has already been quoted in leading economic journals, regard it as possible, or even probable, that Continental is already thinking about dropping its truck tyre production completely – whereas the passenger tyre sector is still closely allied to the concept of chassis management.
According the information given in the March issue of the in-flight magazine “Rono Iberia” of the Spanish airline Iberia the Italian tyre manufacturer Pirelli is looking for beautiful Italian women – “anonymous” if possible – for its next year’s calendar production. It is planned to add nude pictures of a “national beauty” to the list of celebrities who have appeared in previous editions. “Rondo Iberia” says that a prestigious photographer will select the winner among ten candidates previously chosen by a jury.
Go Gomma has been involved with repair and tyre dealer products since 1981, benefiting from more than thirty years’ experience gained by its founder, Giuliano Gori. All products and equipment have been chosen for their competitive prices and optimal quality, and also for innovation, safety, ease of use and protection of the environment. This has enabled Go Gomma to become the main supplier of important Italian and foreign distributors, thus confirming the quality and service of its production so that many products sold under other brand names include Go Gomma technology, experience and skill. The company’s current commitments are aimed not only at consolidating its image but also acquiring customers in developing countries by taking part in specialised fairs and sales missions. The experience gained in the traditional repair and tyre dealer sectors has not prevented Go Gomma from shifting its attention towards developing technologies that, even though founded on rubber and polymers in general, have applications in the industrial abrasion, proof coating and surface protection field. Go Gomma is the leading company in this sector with the widest selection of materials and accessories for rebuilders and tyre dealers. A vast choice of top quality products for professionals is the strong point of the company and the foundation for its many years of success.
Each year in spring the schedule of our editorial staff fills with new tyre launches. What is the reasoning behind the development of more and more new tyres? Is it because customers constantly demand new products? Do they really ask for two per cent more grip on wet roads or three per cent more safety on aquaplaning? Hardly. Many surveys show that customers do not care much about their tyres. Sometimes they do not even know the size of the tyre on their car never mind the correct tyre pressure. And although many customers make the decision which tyre to buy after consulting the test results published in the big German magazines, there is no such thing as a “consumer pressure” on the tyre manufacturers to develop new tyres. More often the industry itself maybe is disappointed with the test results and this might then be a motivation create new products. But indisputably, the greatest drive comes from the car manufacturers. They are constantly demanding higher performing tyres for ever higher performing cars. This is the reason why NEUE REIFENZEITUNG visited the research and development departments of several car and tyre manufacturers to get an impression how they are working together, and to follow up the route of a new tyre from the first sketches to the start of the production. Therefore we will focus on these details in an intermittent series starting in this issue with a very general introduction.
The enthusiasm for aluminium wheels is diminishing. The golden years – mainly in the Eighties – of light alloy wheel are over – for the OE as well as in the aftermarket. Yet European original equipment demand for aluminium wheels is still growing. Year on year, by around about one million pieces. However, we have to accept that new materials and methods of production can make steel wheels as light as aluminium wheels. If the suppliers can make progress in styling and the car makers are forced to make smaller and middle class vehicles cheaper there might be a turnaround in the current trend. Some companies are in trouble. Even the world’s biggest wheel manufacturer Hayes Lemmerz in America had to be rescued under Chapter 11. On the other hand, there are success stories from companies like Superior in North America or Borbet in Europe. Companies like BBS or OZ are still doing good business because they are not interested in volume but rather in selling exclusive (and expensive) wheels. The middle-price sector has been absorbed by the low-priced segment of high volume companies. The flame of the aluminium wheel business flickers weaker and weaker.
Vredestein and Giugiaro have teamed up for a second time to produce a stylish ultra high performance car tyre – the Ultrac. This follows the success of the Giugiaro designed Sportrac, which encouraged Vredestein to ask the Italian design studio to work with them on their first venture into the UHP segment. The result is a variation on a theme, the now familiar extended deep vee tread pattern has been touched by natural influences and now follows a sweeping pattern taken from nature, using the veining of a leaf as inspiration. Many will wonder whether a tread pattern designed by a stylist is as effective as a tread pattern designed by a tyre technician, but by adopting the rule that form follows function, the result is a tyre which appears to perform as well as any of its UHP competitors. The real innovation though is in the compound and the building of the tyres. The Silica Silane compound turned the mixing process into a chemical reaction which had to be time and temperature controlled. Further, the tyre building required an accuracy offered only by new tyre building lines. Vredestein invested some 50 million Euro in production facilities for the Ultrac. It is a venture which leads the Dutch manufacturer into the burgeoning UHP sector, however, MD Rob Oudshoorn told NRZ, “We don’t consider this as a growth market, we see it as another opportunity to sell tyres.”
Mr. Hossein Abouie Mehrizi, Director General of the Non-Metallic Industries Dept. of the Ministry of Industries and Mines in Iran, told delegates at a national tire seminar that there is a shortfall between tyre demand and tyre production in Iran. The country’s 4.6 million cars need 220,000 tons of tyres annually. Since last March, Iran has produced 182,000 tons of tyres for light and heavy vehicles (an increase of 33,000 tons) and imported 40,000 tons.
Intermec Technologies Corporation has announced the commercial availability of RFID tags and readers that immediately support the new B-11 standard established by the Automotive Industry Action Group’s (AIAG). The B-11 standard will guide further introduction of RFID technology into the auto industry. Among the first planned applications will be inclusion of an RFID tag on new-car tyres, allowing car and tyre manufacturers and tyre retailers to track product throughout production, assembly and distribution.
Bridgestone and Toyo have both announced plans to boost output in China, destined for the Chinese domestic market. Bridgestone will raise production in total by 40%, with its Tianjin factory producing 13,000 tyres per day, an increase of 30%. Meanwhile, Toyo is looking at methods of increasing production at Jiangsu by 60%.
The modernization program of Cordenka’s tire cord converting plant in Obernburg (Germany) has recently been completed. Cordenka’s converting concept focuses on saving the tire manufacturer additional processing steps by supplying Cordenka rayon filament for the reinforcement of high-performance tires as cord or cord fabric.
Goodyear Tire and Rubber is considering cutting sales to vehicle manufacturers due to declining profits. The company may also shift some manufacturing to sub-contractors in an attempt to improve margins. Goodyear claims that OE supply could be cut by as much as 24 per cent in three years. 30 per cent of Goodyear tyre sales are to vehicle manufacturers. Unless the tyre manufacturer can secure price increases for OE tyres production could be cut by as many as 5 million units. There have also been suggestions that Goodyear may sub-contract private label production to third parties.
Superior announced the award of several new and replacement programs under the previously announced long term supply agreement which has now been finalized and signed with General Motors Corporation. The first of these programs will begin production in the Spring of 2002 and include the Saturn vehicle name plate; a first for Superior Industries. “These recent business awards demonstrate the value of this unprecedented year contract to both General Motors and Superior Industries because it was based on long term performance in delivering the highest quality, technology and service at competitive prices,” said Louis L. Borick, President and Chairman of Superior Industries.
Parts supplier, Delphi, hopes that the automakers inventory reduction over the past year when production has been at a low, will result in a boost in business as low inventory forces manufacturers to place orders for new stock. In the meantime restructuring continues, with the loss of 11,500 jobs and the closure of nine factories.
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