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Goodyear Committed To New Akron Headquarters

More than a year ago, Goodyear reached an agreement with the city of Akron, the state of Ohio and California developer IRG to build its headquarters near the current one, rather than re-locate elsewhere. The plan was on track until the end of 2008, when a credit squeeze halted IRG’s financing. Though the project is still in limbo, Goodyear has said it still plans to move forward.

“All the parties involved are still extremely confident and extremely committed to the program, but because of the credit crisis it has certainly slowed the progress of finalizing the agreement,” Goodyear spokesman Scott Bachman said. The agreement included 30 million dollars in state tax breaks for Goodyear that are contingent upon it maintaining an employment level of at least 2,900 in Akron – just 200 less than the tyre maker currently employs there.

Due to a downturn in demand for tyres, Goodyear recently announced it would cut nearly 7 per cent of its global workforce of about 75,000, but would not name specific facilities that would see job losses. (Tire Review/Akron)

20th February 2009/by Tyrepress Editors

NETE Buys 15 HiQ Outlets

North Eastern Tyre and Exhausts bought fifteen HiQ-branded retail outlets for £3 million, apparently using cash reserves and bank credit to finance the acquisition. This news comes as the company published annual results which saw turnover rise by 7.7 per cent to £43 million. While like-for-like turnover (sales that don’t take into account new openings) are only expected to rise slightly in the coming 12 months, the new branches are expected to help the company achieve annual sales of £50 million this year.

20th February 2009/by Tyrepress Editors

US Senate Finance Committee Approves Cooper Tupelo Bill

On January 15 the US Senate Finance Committee passed a bill that paves the way for Cooper Tire’s Tupelo, Mississippi plant to receive $13 million in bonds. Under the proposed deal, which must now be voted upon by the Senate itself, Cooper will receive a $6 million loan to move equipment and $7 million in grants for an expansion.

19th January 2009/by Tyrepress Editors

Chinese Car Sales Slowest in a Decade

Having heard about the rough ride Western car markets had in 2008, spare a thought for the booming Chinese market. In 2008 5,326,308 cars were sold into the Chinese market, up 6.7 per cent year-on-year. While carmakers selling into European markets would be over the moon with full-year growth of 6.7 per cent, this the lowest year-on-year growth reported in China for a decade. And what’s more in the month of December passenger sales actually fell 5.7 per cent year-on-year to 545,179 units in December.

According to Morgan Stanley’s Chinese automotive market analyst, this is mainly due to production cuts at the key OEMs. It could also signal that the emerging market’s rapid growth rate has peaked: “Although more supportive policy from the government may be implemented soon, such as purchase tax and consumption tax cut, weak car demand sentiment and consumer confidence are not easy to revive amid a slowing economy, in our view,” Morgan Stanley’s Kate Zhu said in an investor’s note.

16th January 2009/by Tyrepress Editors

Indian Truckers Back on the Road as Tyre Tax Cut

The eight-day truck driver’s strike in India has come to an end following the announcement of major governmental concessions. Following successful negotiations between the Indian government and representatives of the All-India Motors Transport Congress (AIMTC), it was agreed that the tax on tyres would be lifted along with a reduction in the price of diesel and the removal of a service tax.

13th January 2009/by Tyrepress Editors

European New Car Market Contracts by a Quarter in November

According to data released by on December 16 by JATO Dynamics, the European new car market fell by 25.3 per cent (313,361 units) during November 2008, when compared to the same month last year. Total sales for the month now stand at 924,936 units, down from 1,238,297 in 2007.

This further decline in the market, which has dropped consistently over the past seven months, sees an increased year to date deficit figure in comparison to 2007. The total number of vehicles sold during the first 11 months of 2008 is 13,556,052 units – 7.1 per cent (1,030,584 units) less than during the same period last year.

17th December 2008/by Tyrepress Editors

Goodyear Announces Finance Leadership Changes

Several changes have been made to the senior corporate finance staff at Goodyear Tire & Rubber. The company reports that Damon Audia, formerly vice president and treasurer, has been appointed senior vice president of finance and treasurer. His expanded role includes Goodyear’s investor relations and tax functions.

“Damon has been a key member of Goodyear’s finance organisation over the past four years, and he was particularly instrumental in the execution of the plans to refinance the company over the last several years,” said Goodyear executive vice president and chief financial officer Darren R. Wells. “He has demonstrated the type of leadership we need in this role as we address the challenges of today’s economy.”

15th December 2008/by Tyrepress Editors

Dunlop India Chairman Issues Consolatory Media Brief

PK Ruia, the chairman of Dunlop India has told national media sources that the situation at the company’s Sahagunj plant, where work remains under suspension, is “under control.” The factory has been closed since Tuesday 18 November, when staff members were told to go home with an allowance on 2,000 rupees a month. The company now states that talks with banks to negotiate the necessary working capital to reopen are “at an advanced stage”, and that the factory expects to reopen in between 15 and 90 days’ time.

25th November 2008/by Tyrepress Editors

Yokohama Rubber Revises Projections

Yokohama announced today (Tuesday, 28 October) that it has diminished its projections for consolidated net sales and net income in the six months period between April 1 and September 30, 2008 (the first half of the fiscal year to March 31, 2009). Now the company has reported that it expects to see net sales increase by 1.4 per cent over the same period of the previous year to 257 billion yen (1.7 billion pounds sterling – assuming 1 GBP = 149.138 JPY). It also expects operating income to decline 54.6 per cent, to 5.5 billion yen (36.9 million GBP) and for net income to decline 96.2 per cent, to 500 million yen (3.4 million GBP).

The revised projection for net sales is 2.7% lower than the projection Yokohama announced on 12 May, 2008, when the company announced its results for the previous fiscal year. The projection for operating income is unchanged from the earlier projection, and the projection for net income is 75 per cent lower.

28th October 2008/by Tyrepress Editors

Car Ownership Becoming a Love/Hate Relationship

With more vehicles per capita than our European counterparts, some people have romantically described the UK as a nation of car lovers. However, according to a survey carried out by GfK NOP in conjunction with Nationwide Autocentre, it appears that Britain’s love affair with cars is dwindling, with nearly 30 per cent of men and 20 per cent of women now actually resenting their vehicles.

Rising fuel costs and road tax (74 and 53% respectively) were cited as the main reason for the ill feeling. However, those in the tyre industry will be interested to hear learn that 39 per cent of motorists resent their car due to its environmental impact more than even the congestion charge. In addition to the growing trend towards smaller new car sizes, it seems that economical tyres are also likely to grow in popularity – 50 per cent of the country is spending money on essentials like food and clothing instead of maintaining their vehicles.

1st October 2008/by Tyrepress Editors

Conti Predicts 8.5% EBIT this Year

Continental AG says it expects pre-tax profits (EBIT) of about 8.5 per cent this year, despite an earlier prediction of 9.3 per cent. The company, which recently gained a new leading shareholder – ball bearing maker Schaeffler Group – put the profit warning down to the “substantial worsening of the economic environment on the vehicle markets in North America and Europe in the third quarter and the unchanged high burdens from increased raw material cost.” The company maintained its 2008 sales projection of 26.4 billion euros.

15th September 2008/by Tyrepress Editors

Canadian Tire Works Sale-Lease Deal

Canadian Tire Corp. has worked out a sale and lease back deal on 12 of its newer locations, which will net the company some $174 million.

Canadian Tire said it expects a pre-tax gain on the sale of approximately $70 million, which will be amortised over the initial 15-year term of the leases.

20th August 2008/by Tyrepress Editors

Conti Tells Shareholders to Reject Schaeffler Offer

Continental AG’s supervisory and executive boards have recommended that shareholders decline Schaeffler KG’s 11.3 billion euro takeover offer. However, the executive board will continue to negotiate in the short-term, with the full backing of the supervisory board. “Specific progress” is said to have been made in the ongoing talks. The executive board said it will continue to evaluate “all options of action.”

Earlier Frankfurter Allgemeine Zeitung reported that the Schaeffler Group was ready to raise its offer to 75 euros a share. Could this be the “specific progress” Continental mentioned?

In response the Schaeffler Group welcomed Continental AG’s decision to continue the negotiations about an agreement without delay, adding that Schaeffler is very confident that the negotiations will lead to a positive result. “In the interest of both companies, we are also aiming to reach an agreement as rapidly as possible,” Dr. Juergen M. Geissinger, president and CEO of the Schaeffler Group said in a statement.

13th August 2008/by Tyrepress Editors

Bridgestone’s Tech Centre Stays in Akron

Akron, Ohio received the good news yesterday that Bridgestone will build its new Technical Centre facility in the city, meaning that the 600 jobs already stationed in the area will remain situated in their current location.

Workers had waited with bated breath for the Bridgestone search team to make its move in recommending the placement for the new building since the shortlist was cut down to two candidates – the other possibility being to move the work near to Nashville, Tennessee in Murfreesboro – a month ago.

30th July 2008/by Tyrepress Editors

Trelleborg Release Half-Yearly Report

Trelleborg, the industrial group specialising in advanced polymer and applied technology, has released its six-month interim report. The document supports a view of sustained “favourable growth and improved earnings”.

The Swedish firm, which has operations in 40 countries, has announced that: “The order and delivery scenario remained favourable during the second quarter, with organic growth of 7 percent; Operating profit for the quarter in continuing operations, excluding items affecting comparability, was the strongest to date and increased to SEK 734 M from 596, while the operating margin increased to 8.7 percent from 7.5; Four acquisitions were completed during the quarter, adding combined annual sales of approximately SEK 750 M; and As a result of the restructuring program for Trelleborg Automotive that was announced in April 2008 that affects the Fluid Solutions business unit, operating profit for the quarter was charged with SEK 353 M and SEK 238 M after tax.”

25th July 2008/by Tyrepress Editors