Michelin has announced the closure of its truck tyre plant at Burnley and an end of the production of steel cord at Stoke on Trent, with the loss of a total of 732 jobs. The closures are said to be due to the downturn in the US truck market. Burnley is to close in March 2002, steel cord production in September.
The Michelin plant in Trier where the Group produces wire and bead core has come under the microscope. The management is guaranteeing 300 jobs out of the present 330 for this year only and is raising the question whether or not production of wire etc. is still a core business.
The governor of Rio de Janeiro has announced the intention of Michelin to open a second tyre plant in the city. The new plant will complement and duplicate the existing 1.5 million production facility. The new facility is required to meet demand for Michelin tyres in South America, the Caribbean and Cuba.
Hayes Lemmerz International, Inc., a leading global supplier to the automotive and commercial highway industries, announced that its Montague, Michigan Operations has been recognized for achieving a flawless quality rating from DaimlerChrysler Corporation. The facility received a 100-percent quality rating for the left and right exhaust manifolds it supplied to DaimlerChrysler during the 2000 production year. These components are used on a variety of light-truck V-10 engines.
Michelin is to invest 12m Euro in a new tyre warehouse at its Alava plant in Spain. The 30,000 square metre warehouse will employ 40 staff and will be for the exclusive distribution of the production from the Alava factory. The warehouse should be operational in 2002.
An Arizona-based panel of experts assembled by an attorney acting against Firestone has stated that Firestone tyres made in Japan are more durable than those made in America. The ATX tyres manufactured in Japan are claimed to carry thicker layers of key rubber materials, which prevents damaging cracks from appearing. Firestone denied the claim, admitting differences in production but not in durability, the company added that the findings ” are not based on scientific analysis but on anecdotes and unsupported theories.
ArvinMeritor’s expansion at its San Luis Potosi (Mexico) manufacturing facility includes the production facility and machinery to produce steel wheels up to 22.5 inches in diameter. The addition of steel truck wheels augments its wide range of steel wheels currently produced for passenger and light truck OEMs.
In the US, Goodyear says that it will reduce tyre production this month and next, due to weak demand for new cars and trucks. Cuts will be made across the board with no layoffs or shutdowns planned. The reduction follows a second quarter cut in production of six million tyres, despite increased demand as a result of the Firestone recall. Shares in Goodyear fell 20 cents at the news.
Pirelli Tyre ceased operations at its Hanford, California plant. This follows a six month notice issued to the facility in October 2000 stating that the plant’s cost structure was not competitive with other Pirelli plants’ costs. Production capacity will be transferred from Hanford to plants in Europe and South America.
“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.
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.
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.
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.
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.
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.
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