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.
Continental has confirmed its intention to erect a new commercial vehicle tyre factory in the USA, and while no start of construction date has been announced the company says it expects to break ground in the next few months “in cadence with market demands.” The tyre maker anticipates that in the long-term an investment of approximately US$1.4 billion will go into the project.
Prior to the weekend’s Super Bowl 50, Bridgestone Americas announced the extension of its National Football League sponsorship arrangement for a further five years and its continuation as the NFL’s official tyre. The new deal extends the tyre maker’s eight-year relationship with the NFL and advances its ‘Bridgestone Performance Moments’ campaign platform, which includes the award for top performance play of the year at NFL Honors during Super Bowl week.
The US state of Mississippi has approved an incentive package for a US$1.45 billion tyre factory that Continental intends to build in the state. The incentives approved by the Mississippi State Legislature include providing loans of $263 million and various tax breaks. Mississippi will also assist with site acquisition and preparation work, and help with the cost of building the facility.
On 27 January, Trelleborg held a ceremony to inaugurate its first agricultural radial tyre factory in the USA. The official opening followed the start of production at the facility late last year. Production at the US$50 million, 430,000 square foot (40,000 square metre) factory in Spartanburg, South Carolina will be gradually ramped up, with all manufacturing equipment expected to be installed by 2018. Trelleborg anticipates that the project will have created around 150 jobs by this time.
Pirelli’s North American operation reports that Scorpion Verde and Scorpion Verde All Season tyres have been chosen as original equipment fitments for the 2016 Jeep Grand Cherokee and Dodge Durango.
In 2015 the British car manufacturing industry made more cars than any year since 2005 when 1,595,697 vehicles were produced, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT). Data released on 21 January shows that production increased 3.9 per cent on 2014, with output at 1,587,677 overtaking pre-recession levels for the first time.
Three Arisun and Westlake brand tyres, which are manufactured by Zhongce Rubber Group Co., Ltd. (ZC Rubber) in China, recently achieved Smartway fuel efficiency accreditation from the US Environmental Protection Agency (EPA). The Westlake AT566 long haul tyre, Arisun AT570 long haul tyre, Arisun AD778 regional driver tyre all qualified of the low rolling resistance standard.
While the Uniroyal tyre brand is owned by Continental in Europe, in North America the name belongs to the Michelin fold and has been present in the consumer market there for more than 50 years. The existing North American market Uniroyal portfolio of passenger car, SUV and light commercial vehicle tyres is now being joined for the first time by a heavy commercial vehicle tyre range; six new truck tyres have been launched in the US market.
Bridgestone may have had the 800 outlet Pep Boys retail network snapped from it hands by Icahn Enterprises, yet the tyre maker is holding onto its growth plans in the USA. Speaking with Japanese financial publication Nikkei, Bridgestone chief executive officer Masaaki Tsuya shared on plans for 20 per cent growth in the tyre maker’s US retail network by 2020.
Hankook Tire America Corp. (Hankook) is recalling certain Ventus S1 Noble 2 tyres I n the US because they may develop cracks in the tyre sidewall, resulting in a loss of air. The products subject to the recall are the 245/45R18 96W, manufactured 20 May 2013 to 14 February 2015; and size 245/40R19 94W and 275/35R19 96W tyres manufactured 22 May 2013 to 14 February 2015 supplied for 2015 Hyundai Genesis vehicles as well as being sold as replacement tyres.
A planned expansion of a Bridgestone passenger car tyre plant in the USA will help the company respond to increasing global demand for higher rim size tyres, the company says. The Wilson manufacturing facility in North Carolina will be expanded as part of a five-year, US$164 million investment to meet market demands and to invest in newer and more efficient technology. Work on the multi-phase expansion of the 42-year-old facility is expected to commence in early 2016.
The merger agreement signed between Bridgestone Retail Operations and The Pep Boys – Manny, Moe & Jack in October 2015 has been terminated, and in its place the US automotive service and retail chain has signed a definitive agreement under which Icahn Enterprises will acquire Pep Boys for US$18.50 per share in cash. Simultaneous with the demise of the Bridgestone agreement, Icahn Enterprises, on behalf of Pep Boys, paid Bridgestone a $39.5 million termination fee
In a statement issued on 29 December 2015, the heads of five major North American tyre manufacturers called for the US government to not only meet the commitments it made in the recent Paris climate change talks, but to “use its economic might to drive strengthened commitments over time and follow through from other countries around the globe.”
During the closing days of last year, Bridgestone Americas announced that the Bridgestone Retail Operations subsidiary would not counter bid the latest bid from Icahn Enterprises to acquire The Pep Boys – Manny, Moe & Jack. This meant a Happy New Year for Carl Icahn, who now looks set to add the brand and the 800+ Pep Boys outlets to his portfolio.
The bidding war for The Pep Boys – Manny, Moe & Jack has entered a new round, with Icahn Enterprises L.P. offering an extra dollar per share to acquire the US automotive aftermarket retail and service network – a total of around US$56 million more than the offer it made earlier this month. This higher figure has found favour with the Pep Boys Board of Directors – after consultation with legal and financial advisors it determined on 20 December that Icahn’s proposal to acquire Pep Boys for US$16.50 per share in cash constitutes a ‘Superior Proposal’.
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