C-Tyres, the company formed after the management buy-out at retreaders Colway and Motorway, has started production. The first heavy truck tyre – a 385/65 22-5 – has just rolled off the production line. Branded ‘Formula Colway’, the new range consists of premium truck tyre retreads, says C-Tyres MD Gary Oliver.
Dated 8th January, The Financial Times refers to quotes from Ford top managers, Bill Ford and Sir Nick Scheele, that each part of the company is disposable, except the core business of production and sale of vehicles. Especially mentioned is the fast fit business chain Kwik-Fit, which cannot be counted as core business. Both managers expect a lot more problems for the Ford Motor Company in 2002.
There are reports in Romania that Continental is going to invest one million Euro in establishing a logistics centre and warehouse in the country. This month should also see the millionth tyre produced at Continental’s Romanian factory roll off the production line.
Industry consultants Autopolis have produced a report on the US Auto industry. The terrorist attacks in September make forecasting difficult, so Autopolis has developed two scenarios. The first assumes that the US economy moves back to pre-September 11th levels fairly quickly, resulting in only “a typical US recession” with auto sales falling 14 per cent in 2002. Scenario number two is described as “bleak” and presumes a prolonged war on terrorism, problems with oil supplies, rising inflation and a fall in the value of the Dollar. In this case US sales and production would fall by one third, and fall for two years before stabilising. The reality is likely to lie somewhere between these two extremes, says Autopolis, and flexibility is the key for businesses to survive and prosper.
Goodyear has published its monthly investor update, giving brief details of the company’s performance in various world markets. In North America in October, industry shipments of OE and replacement tyres fell. Goodyear made production cutbacks, which continued during November. European industry-wide replacement tyre shipments fell for both passenger and commercial and Goodyear’s sales followed this trend. For OE, Goodyear shipments of consumer tyres were up on last year while those of commercial tyres fell. In Eastern Europe, Goodyear’s shipments of OE and replacement tyres fell from October 2000 levels. Replacement shipments in Latin America fell and OE shipments rose, while in Asia, OE and replacement shipments both rose.
In the UK, Dunlop and Goodyear have decided to combine their administration offices to increase the effectiveness of the joint venture. The offices – and a new distribution centre – will be in Birmingham, preferably at Fort Dunlop. The Wolverhampton offices will eventually be closed, but production at Wolverhampton will not be affected. The two sales divisions will function independently, even though they will operate from the same location. The move will be completed over the next 12 months.
“The slowing economic market” is the reason given for the news that Goodyear is to lay off 1,400 associates at five plants in the USA. The figure equates to around five per cent of the company’s US work force and Goodyear would not say whether or not the layoffs were temporary or permanent. Production at the five factories is being cut from continuous operation to five or six-day working and the layoffs follow 8,000 job losses earlier this year, mostly outside the USA.
Ford and Goodyear made arrangements to allow Ford customers to obtain Ford-approved replacements for Firestone Wilderness AT tires at no charge to the customer. In addition, the tire manufacturer is making arrangements to ensure adequate availability of Goodyear tires at Ford and Mercury dealerships through its own network of independent tire dealers and Goodyear company-owned stores. Goodyear has increased tire production significantly at seven North American manufacturing plants to make tires available for use in the replacement program.
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.
The Vietnamese Southern Rubber Company has begun production of truck tyres on a new production facility using Japanese technology. The first week’s production in August totalled 1,000 tyres. The quality of the tyres produced is claimed to equal that of imported tyres from Korea and India. The Vietnamese tyres are 25 per cent cheaper than the imported brands. Production will build to around 10,000 tyres per month, going some way to alleviating the shortfall in supply of tyres. The country needs 500,000 tyres every year but currently supply is limited to 200,000 units.
Effective May 1, 2001, the Borbet group will acquire the casting facilities for light alloy wheels from Michelin-Kronprinz in Solingen (Germany). The production of steel wheels and fabricated aluminium wheels is still owned by the Michelin group. Customers for cast aluminium wheels made by Michelin-Kronprinz – annual capacity around 1.25 million – are solely in the oe market, mainly BMW and Volkswagen, plus Audi, the PSA group and Renault.
The cut in production of 60,000 units Explorer and Ranger models by Ford in the second and third quarter could cost aluminium wheel maker Superior $2.5 million in revenue.
Back in October, Tenneco Automotive announced that 285 jobs were to be cut in the USA, as part of a plan to reduce salaried staff by 700 by the end of this year. The company has announced another 405 salaried job losses worldwide, blamed on the state of the global automotive aftermarket and reduced vehicle production in the USA.
Pirelli P6000 Powergy and PZero Asimmetrico tyres have been approved for five models of Jaguar’s new X-Type compact sport saloon, for the European markets. The tyres chosen are 205/55 R16 91V (Powergy) and 225/45 ZR 17 91Y (PZero Asimmetrico), and the contract continues a relationship that began in 1985. Recently, Pirelli’s Wheel and Tyre Assembly Division, which started operations in 1999 to supply Jaguar’s car plants in Coventry and Castle Bromwich, recently produced its one millionth wheel and tyre assembly during a production run of PZero tyres for X-Type.
Tenneco Automotive has acquired a plant in Gliwice, south-west Poland, to produce shock absorbers for OE manufacturers based in Europe. The investment is $20 million and involves refurbishing the site and installation of new equipment. Production is scheduled to begin in the third quarter of this year. Richard Sloan, MD of Tenneco Automotive Europe, said that the low labour and operating costs, plus special investment conditions in the Katowice Special Economic Zone, made the decision to come to Poland “straightforward”.
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