Autopolis, the Bear-ish auto industry strategist is likely to downgrade forecasts for the US and North American automotive markets. Despite high sales, production is down by 20% and stocks 40% above normal. This follows an earlier warning of a forecast 11% drop in world-wide (in Western Europe and Asia too) demand, and alerts issued by Autopolis regarding over capacity, and the need to cut costs and improve marketing.
Goodyear’s Wolverhampton plant gets a new production director. Hugh Thompson brings 30 years’ experience in the rubber and plastics industry to the operation. Thompson was the vice president of manufacturing for Dunlop Tyres in North America. He replaces Serge Lussier, who has moved to Brussels to take up the post of director of manufacturing, Eastern Europe, Africa and the Middle East.
Gerd Stubenvoll (39), who has worked for Dunlop for ten years in different positions in the mid-European sales companies, has been named as managing director of Pneumant, with special responsibility for sales. Jeffrey Smith (53) has been appointed production director in Fürstenwalde. His predecessor, Alexander Bleider (42) is now responsible for production at the Luxembourg plant. Dr. Rainer Schieben (38), MD of Pneumant until last autumn, has, for some months, been responsible for sales as sales and marketing director for associated brands at Goodyear’s European HQ in Brussels.
Goodyear has reached an agreement with the Spanish Institute of Magnetism and electronics manufacturer 3BYMESA to develop a prototype tyre wear sensor for possible mass production. Initial development has been by the Institute of Magnetism, further development of the sensors, antennae, transmitter and receiver will be the responsibility of 3BYMESA.
Russia’s leading tyre manufacturer, Nizhnekamskshina, is to boost capacity by 2 million steel belted radial car tyres by 2002. There are also plans to create new truck tyre lines by 2003, to produce 17.5, 21.5 and 22.5 truck tyres for the domestic market. The $60 million investment is being supplied by a major Russian oil company and will see car tyre production rise to 7 million units, though overall output will remain at around 12 million.
Thailand, Indonesia and Malaysia – the world’s three biggest rubber producers – have agreed to cut natural rubber production by 4 per cent next year in an attempt to increase prices. However, traders are sceptical of the chances of success, saying that many rubber producers are small, private businesses which would be difficult to control.
On January 1, 2001, Degussa-Hüls transferred its DMT (dimethyl terephthalate) business to a separate legal entity. The new company, Oxxynova, will initially operate as a marketing operation. Production of DMT, including two production facilities, employing 250, will be transferred to Oxxynova GmbH & Co KG (Marl, Germany) on April 1. DMT is a base product used in the manufacture of polyester. DMT based polyester uses include, for example, the reinforcement of car tyres. Oxxynova is the European market leader with total production capacity of 480,000 tons.
One year into their partnership, TRW and Michelin announce their first business award with a major European original equipment manufacturer (OEM). The product, called “En Tire”, is a state-of-the-art tyre pressure monitoring (TPM) system underscored by the radio frequency technology of TRW and the tyre experience of Michelin. To extend beyond their existing development programmes, TRW and Michelin are actively the next generation TPM system for production in 2005.
Accuride Corporation (North America’s largest manufacturer and supplier of wheels for heavy/medium trucks and trailers) has announced plans to optimise its operations by restructuring the Company’s light steel wheel operations and closing its Columbia, Tennessee, facility. Accuride will consolidate the production of light wheels currently produced in Columbia into its other facilities.
Korean tyre manufacturer Kumho’s production at Kwangju and Koksung had been halted by a walkout by 4,000 union members in protest at Government policies blamed for the loss of thousands of jobs throughout South Korea. Originally, a General Strike was planned from 5th July. Kumho representative, Lim Yoon, said the company would have lost $2.7m per day as a result of the strike. But – as Kumho says – further conflicts could be avoided and production is back to normal.
Nokian has established a subsidiary company for commercialising and internationalising its recently-created intelligent tyre technology (ITT). The company is called RoadSnoop Ltd. and it will be responsible for the product development, production and marketing of ITT. Called the RoadSnoop Safety System, it consists of lightweight sensors installed in the tyres which monitor tyre pressures and temperatures. Should the pressure drop, the system sends an alert to the driver’s mobile phone, in-car computer, or even to a separate display at a garage forecourt.
Michelin controlled Stomil Olsztyn is to curtail production for 15 days during November and December. The shutdown has been brought about by the reduction in sales of the Kormoran marque in Poland. The company will use the break in production to reduce stocks.
Lemmerz International, Inc. – the world’s leading global supplier of automotive and commercial highway wheels – announced that first quarter 2001 diluted earnings per share is projected to be a loss of $(.27) compared to earnings per share of $.51 in first quarter 2000, and compared to a loss of $(.58) per share in fourth quarter 2000. Sales are lower than the record levels experienced in first quarter 2000, but have rebounded significantly from the levels experienced in the fourth quarter of 2000, when North American car producers reduced volumes to adjust light vehicle inventories. Ron Cucuz, Chairman and CEO: “Light vehicle production in North America has stabilised compared to the fourth quarter and volumes have strengthened slowly through the first three months of our current fiscal year. Europe and other operations outside of North America continue to perform very well.”
Malaysian tyre manufacturer Simex Aircraft Tyre Company has signed an agreement to supply Boeing with radial tyres for the 777. Although Simex began aircraft tyre production in 1975, this will be the first time that the company has made radial aircraft tyres and production will begin next year. Simex has named Sumitomo Rubber Industries of Japan as its technical partner in the two-year deal.
The Tanzanian Government has restricted the import of tyres in a protectionist measure. A spokesman said that businessmen have been taking advantage of consumer ignorance by importing “cheap, sub-standard products” and also used tyres, which is illegal. This has threatened the country’s only domestic tyre factory, General Tyre (EA), which has been unable to sell all of its annual production of around 330,000 tyres.
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