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.
Goodyear is reducing production at its Fayetteville plant in the US for the second time in three months, reports Tire Review. The decision to decrease production is describes as a measure to “align production with inventory” in the slow North American tyre market.
On 1 October Apollo Tyres gave word that its Board of Directors has approved the raising of US$150 million through placement of shares to qualified institutional buyers. In a filing to the BSE, Apollo said its board has also approved increasing the investment limit of foreign institutional investors from 30 per cent of the company’s paid up capital to 40 per cent.
US publication Popular Mechanics has named Goodyear’s Air Maintenance Technology (AMT) a 2012 Breakthrough Award winner. The tyre maker, along with this year’s other awardees, will be honoured at a ceremony in New York City on 4 October.
When Goodyear sold its steel tyre cord factories in Colmar-Berg, Luxembourg and Asheboro, US to Korea’s Hyosung Corporation in mid-2011, the tyre maker reported entering into a multi-year agreement for Hyosung to supply it with finished wire products. Now, less than 18 months after Goodyear sold the plants and the right to use certain patents and know-how for US$50 million, Hyosung Corporation has announced the closure of the Asheboro facility. Some 310 employees will be affected by this decision.
The now-expired US tariff on consumer tyres imported from China failed to save or add new tyre industry jobs in the US, the Tire Industry Association said on 27 September. Reporting the end of the tariffs, the association reiterated its opinion that “free and open markets with level playing fields are best for the consuming public and the local tyre dealership in providing the best price for the best product possible.”
Next month's final two rounds of the Protyre Formula Renault BARC Championship at Silverstone will see the famous Brabham family name represented in the series for the first time with Matthew Brabham, son of Geoff and grandson of Formula One legend Sir Jack, set to make his UK race debut.
During his keynote address to the US-based International Tire Exhibition and Conference on 18 September, Giti Tire executive chairman and PT Gajah Tunggal Tbk director Dr. Enki Tan shared that China’s tyre market faces a number of changes in the coming years. He referred to the growth of the middle class and increasing numbers of younger consumers in China; he said that incomes in China are rising – workers’ average wages are expected to rise from five per cent of the US average to 25 per cent – and opined that the most significant change will come through the Chinese government’s target of raising domestic consumption to reach 61 per cent of the country’s GDP by 2022.
Readers of Popular Mechanics magazine have named Bosch Spark Plugs their favourite brand in the US magazine's 2012 Reader's Choice Awards for the third straight year, Tire Review reports. More than 3,138 readers responded to the magazine survey to determine their favorites, and selected Bosch as the spark plug brand of choice from among at least 10 competing brands.
According to US industry publication Tire Review, Hangzhou Zhongce Rubber plants to establish a foothold in the US next year. The Chinese manufacturer is said to be looking at opening a sales and distribution subsidiary, and according to reports is considering locations in Southern California. It is not yet clear whether Hangzhou Zhongce Rubber will offer a full line of passenger, light commercial vehicle and medium truck products in the US market, or will initially focus on one specific segment.
Along with several other tyre majors, Yokohama Rubber has debuted new products at the MINExpo International 2012 show, which ends today in the US. The Japanese manufacturer is displaying a total of 17 OTR radials at the show, including the new “RL45” and “RL51”, along with a new sizes in its “RB42” range for rigid dump trucks.
According to George Rietbergen, when Goodyear Dunlop releases a new tyre-related innovation, it doesn’t do so because it wants to release something ‘sexy’ – it has to be a meaningful innovation, one that will help its customers reduce costs and improve safety. A product that fits squarely into this category is Goodyear Dunlop’s Air Maintenance Technology, or AMT. The public first caught a glimpse of AMT at March’s Geneva motor show, where it was displayed in its passenger car tyre guise. Now, at the IAA Commercial Vehicles Show, the tyre maker has presented AMT for commercial tyres. The technology is still under development and therefore full technical details aren’t being shared at present, yet Rietbergen stated his belief that AMT will be a “game changer.”
There appears to be a collapse in the number of British towns supporting World Car Free Day on 22 September – the annual event that encourages motorists in over 1,000 towns around the globe to leave their cars at home in favour of bicycles, trains and buses. The lack of support can be blamed on slashed budgets for local government and dwindling interest in the environment, according to the Environmental Transport Association (ETA); the organisation that first coordinated the event in Britain.
Continental has placed US dollar-denominated bonds worth US$950 million with institutional investors in Germany and abroad. According to the company, the bonds have a seven year term and are being issued by Continental Rubber of America, Corp., USA, and guaranteed by Continental AG and selected subsidiaries. The annual interest rate will be 4.5 per cent and is substantially lower than the interest rate on the bonds issued by Continental in 2010. Interest will be payable semi-annually in arrears. The proceeds will be used for the early repayment of part of the debts scheduled to mature in April 2014.
Kumho Tyre UK is set to appoint a new sales director for the UK and Ireland, following the departure of Matt Smith. According to the company, members of senior management team will take over his responsibilities until a successor is in place.
Further outlets have been added to Michelin Americas Truck Tires’ fleet network following an agreement with TravelCenters of America (TA), operator of the TA and Petro Stopping Centers branded travel centres. The addition of these TA/Petro locations will expand the total number of Michelin X One servicing dealers to nearly 2,000 locations throughout the US.
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