US Success For German Cars
US auto sales in 1999 reached 17.4 million; a 9.1% increase over 1998. Audi car sales rose 39% to 65,959, Porsche sold 17,243 cars (+21%) and Mercedes 189,437 (+11.3%). Chrysler “only” achieved an increase of 5.1%.
Across the Atlantic they are called tires, while over here we use a “Y” and say tyres. This tag provides the latest tyre business news emanating from the United States of America (USA), whichever way you spell it.
Tag Archive for: USA
Goodyear Turnaround “On Track”
Product NewsAfter a bad year in 1999, Goodyear has announced that the company is now “on track” with its turnaround strategy.
CAS Sues Ford And Bridgestone
Product NewsIn the USA, the Center for Auto Safety (CAS), the consumer group founded by Ralph Nader, has filed a lawsuit against Ford and Bridgestone/Firestone to try to force the companies to replace all Firestone ATX, ATX II and Wilderness tyres, irrespective of tyre size or place of manufacture. CAS says that the numbers involved would be at least double the current recall figure of 6.5 million tyres.
No Production Problems at Firestone
Product NewsInvestigations at Bridgestone/Firestone plants in the US have revealed no major production process problems, according to Yochiro Kaizaki, company president. He also admitted that there may not have been up to standard and that, “the probability of low safety tyres may be higher”. Speaking of the alleged tyre related accidents, Mr. Kaizaki added that, “even with experts involved, it is hard to determine whether it is design, production, driving or car related. If we are asked if the tyres are defective, we can say that legally there are no defects”. In spite of this statement there are signs that Bridgestone/Firestone are preparing to make out of court settlements with alleged victims.
Bridgestone Purchases Outstanding Stake in BATASIA
Product NewsBridgestone Corp. has purchased the remaining 50 per cent stake of Bridgestone Aircraft Tire Comp. Asia (BATASIA) from Hong Kong Aircraft Engineering Comp. Ltd. Bridgestone produces new aircraft tyres in Japan and owns retreading plants in USA, Belgium, Hong Kong and Japan.
As Expected: Firestone Recalls 4×4 Tyres
NewsThe Ford Explorer has come under pressure because of a supposed series of accidents, blamed on allegedly faulty Firestone tyres. Both Ford and Bridgestone Firestone are strenuously denying the allegations. Firestone is the biggest tyre supplier for Ford’s Explorer and Expedition SUVs and the Aiken factory (opened last year) depends heavily on this business. The plant has an annual capacity of ten million tyres, of which nearly half are destined for Ford. After US retailer Sears Roebuck has taken some types of Firestone tyres off its shelves for this reason, in Tokyo, shares in Bridgestone fell by 8.8% at the news. In the US, Bridgestone/Firestone suggested at first that customers visit their B/F dealer for a tyre check but then decided to recall voluntarily ATX, ATX II and Wilderness AT tyres. The only size involved is the 235/75 R 15. This can count for up to 6.5 million tyres. This information was given in a press conference on 9th August in Washington D.C. The replacement will start in the south states of the USA because the problem often occurred in hot weather. The customer will be given a new tyre free of charge regardless of the condition of the old one. Firestone are also immediately recalling tyres from its 4×4 Wilderness range in Europe. Only one size is affected and relatively small numbers are involved. It is expected that the cost to Firestone could reach US$ 500 million. There are also rumours that Ford – itself coming under growing pressure – intends to change tyre suppliers for its Explorer and Expedition models. Industry observers have expressed surprise at how badly Firestone is managing the public relations aspect of the current crisis.
Sales Of Cars In Asia To Fall Next Year
Product NewsDespite the recovery in vehicle sales in Asia over the past two years, analysts are predicting a slowdown in sales in parts of the region, notably South Korea. The Asian car market is expected to fall by 3% next year, with little sign of recovery in 2002.
Production Capacity To Be Reduced At Firestone USA
Product NewsBridgestone/Firestone will cut production capacity in two of its US plants as a result of the tyre recall and decline in demand for Firestone tyres. Approximately another 1,100 employees will lose their jobs.
Pirelli Sells “Terrestrial Optical Networking Systems”
Product NewsCisco has agreed to buy Pirelli’s Terrestrial Optical Networking Systems for US$ 2.15 bn and also plans to invest US$ 100 million to take a 10% stake in Pirelli’s Submarine Optical Transmissions. The Photronic Business accounts for a turnover of 395 million Euros.
Kumho To Compete In OE Business
Product NewsKumho Tire is seeking OE business in Europe and North America. The company has announced expansion of production in Asia, for example in the Nanjing factory.
New US-Headquarter For Continental Teves In Auburn Hills
Product NewsThe new administration building an R&D-Centre has been officially opened in September. The two storey building has 250.000 square meters and the costs were 40 million US-$. 540 employees, within weeks this number will climb up to 600, who used to work before in three different places in Detroit, are now working in the headquarter, which is located very close to the US-HQ from DaimlerChrysler. Continental Teves employs 2,100 people in North America. 32 % of its turnover of about 2.5 bn Euro are made in the US.
Closure Of Bridgestone US Factory “Cannot Be Ruled Out”
Product NewsQuoted in the Asian Wall Street Journal, Bridgestone President Yoichiro Kaizaki said that the company’s factory in Decatur could be temporarily closed, should improvements need to be made. Mr. Kaizaki also said that permanent closure of the plant could not be ruled out.
Nokian To Produce Commercial Tyres In The USA
Product NewsFinnish tyre manufacturer Nokian has confirmed that the company intends to produce commercial tyres in the USA as soon as possible. The first products will be forest tyres, followed by industrial tyres. A spokesman for Nokian said that it had not yet been decided whether the company would build its own factory in the USA, whether there would be some kind of joint venture co-operation, or whether tyres would be manufactured in an off-take agreement. The Finnish company has been active in the US and Canadian markets for some years.
More Capacity At Michelin’s Thailand Plant
Product NewsThe Michelin Siam group is investing US$ 100 million to increase annual plant capacity from 2.9 million passenger and SUV tyres to 6 million, within two years.
Ford Wants Faster Recall
Product NewsFord Chief Executive Jacques Nasser has described the news that the recall of Firestone tyres in the USA might take until next spring as “unacceptable”. Originally, the recall was scheduled to take until summer, but Bridgestone/Firestone announced the revised spring time scale this week. Production of Firestone tyres has doubled and imports have been increased to meet demand. Ford is said to be considering a number of ideas to quicken the recall, including providing rental vehicles for those who are anxious about the delay.
