Business analysts report that Continental is running its winter tyre production at full capacity (70,000 tyres/day), having started production earlier in the year than usual. The estimate is that around 12 million winter tyres will be produced for the coming season. Conti has also introduced an enhanced order and logistics system, which should ensure that fill rates are well over 80 per cent.
European and US car manufacturers are catching up with their Japanese counterparts in Europe in terms of productivity. Toyota, Honda and Nissan averaged 87.5 cars per worker, in a report issued by the World Markets Research Centre – the European average is 58.6 cars/worker. But the gap is narrowing; Europe-based Japanese companies improved productivity by 5.4 per cent last year, while the improvement average for non-Japanese European manufacturers was 7 per cent.
National Fleet has appointed Martin Towers as Commercial Director for its recently expanded mobile tyre fitting division. He will report directly to National Fleet’s Managing Director, Kevin Parker. Martin Towers is a familiar name to the fleet industry and joins National Fleet with many years of industry experience gained with Kwik-Fit Fleet, Tyreserve and latterly the AA.
Yesterday was the final day for Goodyear to report its 2002 financial results or apply for a two-week extension. The company has said that it will not release financial details until it has finalised discussions with banks concerning restructuring, refinancing and securing loans, as “both subjects are related” said a spokesman. Goodyear denies it is facing a liquidity crisis, as some analysts have said, and the company has secured a new credit line of $1.3 billion.
Fiat has warned that its auto division will report a loss of around 187 million Euros for the fourth quarter. Previously the company had predicted a break-even for 4Q, while analysts were forecasting a loss of 35 million Euros. If the estimate is correct, Fiat Auto’s loss for the year 2002 will be 1.4 billion Euros. The company has sold assets in an attempt to improve its financial position, including its 5 per cent stake in General Motors, bought by Merrill Lynch for US$ 1.16 billion.
Rubber & Plastics News, a sister magazine of Tire Business, has named Bridgestone/Firestone Chairman and CEO John Lampe (53) as the “Rubber Industry Executive of the Year”. The award is in recognition of Lampe’s leadership in the company’s rebound from the Firestone tyre recall, which was at its height when Lampe assumed the top job. He was reluctant to accept the award at first, fearing that it would overshadow the part played by employees, dealers and customers. The company’s recovery is such that it expects to report a net income of $70 million for 2002, compared to a net loss of $1.67 billion in 2001.
Following the breakdown of talks between Kumho and the consortium led by JP Morgan Chase and Carlyle Group, concerning the sale of 80 per cent of Kumho’s Tyre Division, a media report from Korea says that talks are on-going with the South Korea Military Pension Fund to buy the company. Neither the fund, nor Kumho, nor the state-run Korea Development Bank, which the report says would provide funding for any deal, would comment on the report.
Now that Goodyear’s stock has fallen to its lowest value in the last 10 years, questions are being asked about the consequences for the management. At the moment Goodyear shares costs less than 10 US-$, and American newspapers report that, since 1996, when Sam Gibara took over, Goodyear’s stock-value has fallen by about 80 percent. Last year the company lost more than 200 million US-$, and this year there is no turnaround in sight. Goodyear is not in a position go on the offensive; on the contrary it has its back to the wall. Bad enough that the bond issues are rated as “junk-bonds” and that obtaining credit will be more expensive, but the scenarios and rumours that are being discussed inside the company would have been unthinkable some time ago. Despite these difficulties, analysts agree that Goodyear can resolve its problems without outside help, assuming it chooses the right measures. On Tuesday this week a routine chairman’s board meeting will take place. It is not known whether there will be any discussions about the management.
The altering demographics of the population in the next 50 years will possibly see a decrease in the demand for cars. The changes will not necessarily be in parallel because of the way in which the changes in the population will occur. The population over 60 years of age will become increasingly important as their representation as new car buyers increases from 25 per cent to 35 percent of the car buying market. The sector under 50 years of age will drop from 55 per cent to 43 per cent. This means that the manufacturers will have to re-orientate their products and their marketing according to a report by Marketing Systems GmbH (Essen/Germany).
The Rugby Primary Care Trust has given the go-ahead for tyre burning trials at the town’s cement works, provided emissions are “rigorously and independently monitored”. A Health Impact Assessment report said that the only pollutant to increase was likely to be zinc and levels of arsenic, cadmium, cobalt, nickel and lead would be less, compared with burning only coal. The decision was greeted angrily by protestors, some of who turned up at the meeting carrying a coffin.
Toyota is launching a joint venture with First Automotive Works, China’s biggest car manufacturer, to make luxury sedans, SUVs and cheaper, smaller cars in China for the local market. The target is to sell up to 400,000 vehicles a year by 2010 and an unconfirmed report suggests that the investment will total 1.29 billion Euros.
Goodyear Tire & Rubber has appointed Barbara B. Gould (52) as director of investor relations from September 1st, succeeding Laura K. Thompson, who will become director, finance – consumer tyres for the North American business unit. Gould has a history of investor relations and as a financial analyst; in her new role she will report to Robert W. Tieken, executive vice president and chief financial officer.
Hayes Lemmerz International, Inc has announced several key appointments to its Global Leadership Team. The following individuals will report directly to Curtis J. Clawson, Chairman of the Board and Chief Executive Officer: James A. Yost has been appointed as Chief Financial Officer (CFO). Mr. Yost retired from Ford Motor Company in 2001 after serving as Vice President of Corporate Strategy. Kenneth A. Hiltz will continue in his role as Chief Restructuring Officer (CRO). He will continue to play a key role in the development and implementation of the Company’s restructuring plan. Brian O’Loughlin has been appointed as Chief Information Officer (CIO). Mr. O’Loughlin joins the Company from Revlon, Inc., where he served as CIO. Edward W. Kopkowski has been appointed to the newly created position of Vice President of Operational Excellence. Mr. Kopkowski previously served as Founder and President of Kopko Associates, Ltd., a consulting firm. “These talented professionals will bring tremendous strength to our organisation and have a major, positive impact on our global business,” said Mr. Clawson.
Auto industry consultants Autopolis have released their latest report on the global automobile industry. It predicts a decline this year, with vehicle sales falling in the three largest markets (North America, Europe and Japan). A global 5 per cent decline (2.6 million vehicles) is predicted this year and a further 2.5 per cent decline the year after. However, Autopolis predicts that the global car and truck market will return to year 2000 record levels (54.9 million vehicles) by 2005 and, by 2010, demand will exceed 61 million vehicles.
A short time after the Firestone recall in the US the Congress proclaimed a law so called Tread Act, the President signed it and it became effective. Especially the improvement in safety of the consumers was the target of this initiative, which should for a lot of products in the automotive area lead to changes, also for tyres and not only for tyre pressure monitoring systems. Among others was fixed that from November 1st all in the United States new registrated cars should be fitted with tyre monitoring systems. The American public agency NHTSA got the order to make proposals regarding the details of new tyre (safety) standards for the biggest vehicle market in the world. Under the title “Tire Pressure Monitoring Systems” the agency made a report, in which a lot of knowledge with regard of the contents in the Ford/Firestone dispute flued in. The NHTSA results should lead to a regulation the congress should agree on April 1st last year already. But even still now the procedere is not finished and got a set-back: The Office of Management and Budget (OMB), a White House department, gave the NHTSA report back to the agency and made some additional proposals the NHTSA should proof before a new standard regarding to car tyres could be concluded. Most criticized by the OMB were: too high costs – for the national economy, the affected industry and the consumers. That car makers and suppliers still have to wait until it will be clear which regulations will be common is a pity: We learnt to talk about the round black things and are not really surprised when we hear about elevations with fatale results about the state of tyres. The nowadays state of tyre technology however could lead to a situation that the tyre is at the far end of reasons for accidents. Our magazine gives the newest developments in the April issue in detail and also gave some insiders the opportunity to publish their point of view. They all agree in one point: The world of tyres – in technical aspects – stands before revolutionary changes, and a lot of new chances.
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