(Akron/Tire Review) Standard & Poor’s has dropped Cooper Tire & Rubber Co. from its S&P 500 index. The Findlay, Ohio, tyremaker will be replaced by telecommunications firm Windstream Corp. According to S&P, Cooper was the smallest member of the 500 in terms of market capitalization. In November 1999, Goodyear Tire & Rubber Co. was cut from the Dow Jones Industrial Average, which considers the performance of 30 stocks.
AEZ is to launch the first self-cleaning wheel onto the market in 2006. The AEZ Raver, is said to be a groundbreaking innovation and the first alloy wheel to have been made using a nanotechnology-based coating.
Continental AG has announced that it will reduce the number of staff working at its Hanover-Stöcken plant by 10 per cent, by the end of 2006. The job losses will affect 320 tyre production employees.
“The unexpectedly weak growth in passenger tyre sales…left us no other choice in the end but to schedule discontinuation of passenger tyre production in Stöcken as of 31 December 2006 and to demonstrate cost-optimised flexibility at other plants by cutting back the number of shifts,” said Manfred Wennemer, chairman of the executive board of Continental AG and board member responsible for the Passenger and Light Truck Tires division.
The 2006 ATS is set to be 54 per cent cheaper than in 2001, says one of the people behind the organisation of the exhibition. Marketing consultant, Bob Sockl explained that prices had gone against the rate of inflation: “Whereas the Garage Equipment Association members who exhibit at the show every year have been aware of the huge cost reduction since 2004, it has come as a nice surprise for parts suppliers returning to the Show in 2006. With space costs as low as £59 per square metre, compared to £130 in 2001, exhibiting at ATS is a really cost effective way of meeting the managers and technicians who buy and fit replacement parts.”
According to the organisers, it all began with the decision in 2004 to run ATS and the CV Show at the same time, in adjacent halls. The resulting economies of scale, with 651 exhibitors across the two means a 20 square metre area can cost £1180, ATS is within even the smallest company’s reach.
Symons Tire Inc, purported to be the “world’s smallest Bandag shop” has joined TRIB, according to Tire Review. Symons Tire owner Mike “Mac” McElvogue, does all the actual retreading himself and has more than 25 years of experience, 17 of these have been as a Bandag dealer. Now Mr McElvogue is a certified Bandag Master Craftsman and Repair Specialist. “We are delighted to have Symons Tire as a part of the TRIB family. They may be small in size but their service can stand along the biggest dealers,” said Harvey Brodsky, TRIB’s managing director.
Major French car manufacturers, Renault and Peugeot have selected Bridgestone for original equipment, the company has announced. Both manufacturers will fit 15 inch tyres to their new high-volume small cars.
There has been an unequivocal direction from Akron and Brussels, European Goodyear directors tell their subordinates. Once again, no matter by what means, the company has to cut expenses. Apparently the 2003 Ebit goals (reportedly 400 million US Dollars), that have been set by the creditor banks, are seriously at risk. Should the Ebit remain below the minimum 400 million threshold the banks would be entitled to withdraw from the concessions made earlier this year. And achieving the set Ebit goals seems to be becoming more difficult due to rising raw material prices and a sluggish American economy. The latest round of economy measures does nothing to dispel the feeling of insecurity among employees. What is more, it makes them angry and frustrated because even the smallest purchase of goods now has to be authorised. The potential of these economy measures would appear to be virtually insignificant. According to insiders, in Europe this potential is less than 2 million Euro. How far away the corporate group still is from its expected turnaround will be revealed with the third quarter figures. That Goodyear will end this year with another severe loss can be taken as read, no matter what economy measures are taken.
Ultra High Performance Tyres (uhp) are not only for super sports cars nor high performance marques, but also for the top models of volume car makers. They are the biggest customers of the European uhp tyre manufacturers nowadays. From the middle of the decade, uhp OE sales begin to slacken, but aftermarket sales continue to grow. At the moment the OE sector accounts for the majority of uhp tyre sales, but this will turn around in a couple of years. Nowadays, 16″ tyres are usually the smallest in the uhp market; 17″ and 18″ increase, 19″ and 20″ are still comparatively rare. 55 and 50 series aspect ratios are the usual sizes, but tyres as low as 30 series can be fitted. Looking ahead, the V speed rating looks set to explode. In W/Y/Z speed ratings, the premium tyre manufacturers dominate, but for V-rated tyres, the not-so-well-known brands can get a slice of the cake. In 1999, sales of V, W, Y and Z-rated tyres in Western Europe were in excess of 20 million units and by 2005, this will be doubled. In volume terms, Germany will be the biggest market – even today, one in three uhp tyres sold in Europe is bought by a German. But Germany is the leader only on numbers sold; when it comes to uhp tyres as a percentage of the tyre market as a whole, last year this sector accounted for 30% of the German market. The leader in percentage terms was Switzerland, with 38%.
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