Wheels
Hayes Lemmerz International has been awarded a contract from Nissan Japan for cast aluminum wheels. The wheels are currently being produced at the Hayes Lemmerz’ Antwerp, Belgium manufacturing facility for export shipment to Nissan Motor, in Japan. The contract is valued at an estimated $11 million.
The market for off road vehicles is constantly changing; also the market for suitable tyres and wheels. In the 80s Japanese car makers Toyota, Nissan, Suzuki, Mitsubishi and Honda created this market with 4 wheel drive vehicles able to be used on rough terrain. Now the 4×4 cars have become more suitable for use on the streets and the term Sport Utility Vehicle (SUV), replaces the former “Off Road Vehicle”. Car manufacturers like Ford, Chrysler, BMW and Mercedes have discovered that this has become more than just a niche market. Explorer, Cherokee, X5 and M-class are closer to luxury cars than those for use off the beaten track. Some tyre manufacturers have developed their off-road programme in this direction, whilst others have directly used the platform of existing passenger car tyres for this new generation of vehicles. The 4×4 tyre market will grow within the next few years as a lucrative market segment for the tyre industry, tyre dealers and also for the light alloy wheel business. Typical consumers in the 80s, with sparsely-equipped Suzukis, were not able to invest much money in tyres and wheels, but nowadays drivers of these cars are members of a more affluent society. The trends are very similar to passenger cars, with sizes becoming larger, faster, V, W, Y and Z speed ratings and higher load indices.
Lemmerz International, Inc. – the world’s leading global supplier of automotive and commercial highway wheels – announced that first quarter 2001 diluted earnings per share is projected to be a loss of $(.27) compared to earnings per share of $.51 in first quarter 2000, and compared to a loss of $(.58) per share in fourth quarter 2000. Sales are lower than the record levels experienced in first quarter 2000, but have rebounded significantly from the levels experienced in the fourth quarter of 2000, when North American car producers reduced volumes to adjust light vehicle inventories. Ron Cucuz, Chairman and CEO: “Light vehicle production in North America has stabilised compared to the fourth quarter and volumes have strengthened slowly through the first three months of our current fiscal year. Europe and other operations outside of North America continue to perform very well.”
Nissan has recalled 24,000 Japanese produced four-door Almeras which may be subject to a tyre mounting fault. During the mounting of the tyres on the wheels there may have been insufficient mounting paste used, resulting in damage to the tyre bead. The cars were produced between March and December 2000. In Germany the tyres will be tested and replaced on up to 1,470 Almeras.
Delphi Automotive Systems launched a pre-production four wheel steer development named Quadrasteer today. The system will improve turning capability at all speeds and stability at high speed. The electronic system is claimed to reduce turning circles by up to 20%.
From May 23rd to 27th, 2001, the 19th Autopromotec took place in Bologna’s exhibition center, where nearly everybody could have met who is traditionally engaged with some kind of vehicle care and repair. 924 exhibitors (7 percent more than in 1999) from more than 30 countries were presenting their products on the whole site of more than 90,000 square meters, divided into 12 exhibition halls and an outdoor area. Again, the complete service sector concerning the car was represented there: Garage alignment suppliers, remoulders with their material and equipment suppliers, garagists, manufacturers of wheels and vehicle parts, and last but not least, tyre industry as well as wholesaler and special trade organisations and companies. Visitors had been as international as the exhibitors – the organisers did expect more than 80,000 car repair specialists from more than 100 different countries. Although in the end there had been some 3,000 more, but without visiting every hall equally. And again, those halls got the visitors’ main interest where garage alignment suppliers, i.e. the manufacturers of balancing machines, alignment gauges, hydraulic ramps or even complete test lane automates had their stands. However, there had been considerably less visitors in hall 23, where “remoulding technology” was concentrated.
With the sale of assets Titan International (Quincy/Illinois), a manufacturer of speciality tyres and wheels, has exited the oe business with lawn and garden equipment as well as all terrain vehicles (ATVs) and improved its second quarter results due to the price paid by Carlisle Tire and Wheel Co. The new strategy of Titan will be to concentrate on agricultural and construction wheel business and tyre assemblies and to focus more on aftermarket demands.
The division Speedline Truck supplies the major truck manufacturers in Europe and North America. In future the range will include flow-formed wheels – for trucks Speedline uses this technology exclusively, which has the effects of reduced weight and improved mechanical properties.
North America’s Accuride Corp. (Evansville/Indiana) is an enormously profitable producer of steel and aluminium wheels for trucks and recorded a record jump in sales to more than 500 million US-$ in 1999. Founded by Firestone in 1905, the company was sold in 1986 to Phelps Dodge Corp., cooperated with Goodyear 1992 and was sold again in 1998 to investment group Kohlberg, Kravis and Roberts (KKR). Now the automotive supplier has its eyes set on the European market for investments, maybe also in aluminium wheels for cars.
Superior Industries (Van Nuys/California), North America’s Leading oe supplier of aluminium wheels, announced record revenues of more than 331 m US-$ (+13.5%) and record net income to more than 40 m US-$ (+16.3%) after tax.
Italian company Lancia has built a new limousine as a present for the Pope. The car will be fitted with four special aluminum wheels produced by Speedline (Tabina).
During the annual shareholders meeting of Continental, the tyre manufacturer announced that it is going to build up an online tyre shop which will go live at the beginning of next year. At first he offer will contains passenger car tyres and service, and later complete wheels and car accessories will be included.
New contracts for chrome-cladded steel wheels from General Motors and DaimlerChrysler have prompted ArvinMeritor to expand its San Luis Potosi (Mexico) facility. Staff numbers will increase from 300 to 450.
DTM (Deutsche Tourenwagen-Masters), the popular German racing series, will be revitalised this year. Dunlop is supplying all participating teams (Audi, Opel and Mercedes have confirmed their participation) with tyres. AMG-Mercedes’ teams, eight expected, will have wheels fitted by ATS.
South African Diversified company Murray & Roberts has a new Chief Executive, Brian Bruce. In an interview Bruce announced that M & R is again in discussions with “some players” to sell subsidiary company Alloy Wheels International (AWI). The producer of oe aluminium wheels closed a factory in Cardiff (Wales) a few weeks ago.
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