Retreading Equipment and Machinery
Product NewsYes, we know that times are hard for retreaders, with price pressure due to competition and raw material costs. Then there are the requirements of ECE 108 and 109 – more trouble and expense. To survive, today’s retreader has to produce a quality product that performs with the best of them and one of the keys to quality is the latest machinery. Whether it is buffing, extruding or non-destructive testing, the kit available to retreaders has become ever-more sophisticated.
US Court Rejects Tyre Monitoring System Regulation
Product NewsIn the USA, a panel of three federal judges has rejected a proposed tyre pressure monitoring system (TPMS) as it allowed too great a margin for error. TPMS was made compulsory in new cars following the Ford Explorer/Firestone tyre episode. The National Highway Traffic Safety Administration was ordered to come up with a TPMS for cars and it offered two systems – one which required a sensor on all four tyres (direct system) and one which used existing technology systems, such as ABS, to estimate pressure (indirect system). Consumer groups claimed that the second system was not effective all the time, and thus did not meet the law’s requirements, and the judges agreed, ordering the NHTSA to formulate a new rule.
The argument of the consumer groups was that indirect TPMS works by comparing the speeds of two diagonal wheels with the other two diagonal wheels and, as such, cannot tell whether all four tyres are under-inflated or whether two tyres on the same axle or the same side of the vehicle are under-inflated. The judges accepted this view and one of them, Robert D. Sack, said “The record discloses that the added cost for a system that worked all the time, rather than half of the time, was less than $10 per car.”
A possible beneficiary of the ruling could be Goodyear Tire & Rubber, which has developed a direct monitoring system in partnership with Siemens VDO, whereby a computer chip embedded in the tyre warns the driver of air pressure loss via radio signals to a dashboard display. The system is currently being tested by several vehicle manufacturers for their 2006 models. A Goodyear spokesperson said “we think the debate will continue between the automotive industry and consumer groups for a while. Either way, we support tyre pressure monitoring systems.”
Consumer groups were less diplomatic, hailing the decision as “perfect”. Clarence Ditlow, executive director of the Center for Auto Safety – a frequent critic of the auto industry – made his position plain when he said “This decision will block the pro-industry, anti-consumer, deregulatory campaign of the Bush administration”. This is a reference to the fact that it was the White House’s Office of Management and Budget, which had wanted a TPMS that was less costly than direct monitoring.
For the vehicle makers, a spokesperson for the lobbying group the Alliance of Automobile Manufacturers said that the AAM prefers a system that would allow auto manufacturers to choose between technologies. The spokesperson added: “the cost gap between the direct and indirect systems appeared to be wider than that cited in the ruling”, which would appear to be an indication that we may not yet have heard the last word on the subject.
Marangoni Tread success in Brazil
Product NewsA success story for Marangoni is its activities in Brazil, thousands of miles from its European activities. Marangoni’s involvement in Brazil began in the early 90s as a partnership with Brazilian market leader UNISA for the transfer of technology for the manufacture and marketing of the Ringtread product. At its height, there was a network of 15 authorised RTS dealers in Brazil.
However, the serious economic downturn saw UNISA go bankrupt, threatening Marangoni’s progress in Brazil, but the operation in that country was kept alive by the determination of a group of former directors of UNISA, headed by Mr. Dary Fernando Figueiredo. The reason that Marangoni was so keen to remain established in Brazil is that the country is the world’s second largest market for retreads, with a monthly consumption of 12,000 tonnes of rubber, which corresponds to some 10 million retreaded truck tyres annually.
In 1998, Mr. Dary Fernando Figueiredo founded a new company with its head office in Sao Paulo, which had a small warehouse and just one customer. This eventually became Marangoni do Brasil and, in April 2001, a new facility was opened for the production of precured treads, representing an investment equivalent to nearly 12.6 million Euro at current exchange rates and covering an area of 53,000 square metres. Growth was rapid and, in 2002, the volume of treads produced reached 220,000, for 30 customers. The key to this success lies in the close partnership established between authorised dealers and Marangoni do Brasil; a relationship focused on the distribution of the product and the commercial assistance provided to the dealers in their work in the fleet market.
As far as Marangoni is concerned, the story is far from over, as future sales objectives involve a portfolio of more than 50 customers and sales of 550,000 retreads by the year 2005.
Yokohama To Introduce Advan Brand To Europe
Product NewsYokohama Rubber is to introduce its Advan tyre brand into Europe for the first time at the forthcoming Frankfurt International Motor Show. The tyres on show will be run-flats and it is believed that Yokohama will market Advan as a high quality, high performance tyre for luxury cars, building up brand awareness by participation in motorsports events. Advan is an established brand in Japan and its only European exposure so far has been through OE fitment on imported vehicles.
Hayes Lemmerz Sells Off Warehouse
Product NewsHayes Lemmerz has sold off its Reliable Transportation Components (RTC) centre to Nationwide Wheels, for an undisclosed sum. RTC was acquired by Hayes Lemmerz in 1996 and is a warehouse serving the RV, utility and livestock trailer industries. Hayes Lemmerz described the sale as part of the company’s long-term strategy of focusing on core businesses.
Amcast Restructures Credit Facilities
Product NewsAmcast Industrial Corporation has restructured its credit facilities with its bank lending group and senior note holders, with credit maturities extended until September 14 2006. The effect of this is to reclassify $169.4 million of debt from short term to long term. Amcast said that this move shows the confidence that lenders have in the corporation.
Superior Industries Warning On 3Q Figures
Product NewsSuperior Industries International has warned that operating results for the third quarter will be below previous estimates. While turnover is satisfactory, SII has experienced “significant one-time expenses relating to multiple expansion programs and record number of new product launches. The company is confident that its programme of capacity expansion, modernisation and cost reductions will bear fruit, but short term expenses are higher than anticipated. Wheel shipments will be around 3 per cent down on 3Q last year, said President and COO Steve Borick.
Bridgestone back at the IAA
Product NewsBridgestone will return to the Frankfurt IAA in 2003, after a 12-year absence, with an innovative display of its latest tyre technology and achievements. The 310 m2 booth will be located in Hall 8, nr. A18. The famous red Formula One Ferrari catches the eye, but there’s more to the stand than motorsport glitter. “We wanted to show that Bridgestone develops world-class tyre technology”, says Mr Günter Unterhauser, Managing Director of Bridgestone Germany. “The IAA is one of the most prestigious motor shows in the world and certainly the top show in Germany. It is not only for end users. It gives us the chance to invite loyal dealers and our First Stop partners, to convey the message that we are a high tech company and to show them the new range.”
Proposed agreement between Goodyear and USWA
Product NewsAfter months of protracted negotiations, the Goodyear Tire & Rubber Co. and the United Steel Workers of America (USWA) arrived at a draft agreement for a new labour contract, designed to last three years and covering 16,000 Goodyear associates in the USA.
F1 Tyre Ruling Causes Controversy
MotorsportThe ruling body of Formula One, the FIA, has made a ruling that could effectively brand Michelin’s tyres as illegal. This follows a complaint, believed to have been made by Ferrari and Bridgestone, although both have denied it, that Michelin’s tread is wider than the 270 mm permitted by F1 regulations. If Michelin has to scrap its current tyres, the company cannot possibly modify the design before the Italian Grand Prix on September 14th and Michelin’s Pierre Dupasquier has suggested that the five teams running on Michelins might boycott the Monza GP. He says: “Our partners would have to spend a lot of money without any guarantee that they would not be disqualified. It is up to them to decide.”
Pirelli To Raise Prices In North America
Product NewsFrom October 1st, Pirelli Tire North America is to increase passenger car and light truck tyre prices. The price increase is prompted by rising raw material costs and will vary by product offering, reaching a maximum of four per cent.
Goodyear Dunlop UK Director
Product NewsGoodyear Dunlop has appointed Paul Wilde (39) as Director, Consumer Strategic Business Unit, UK. The role gives him responsibility for the consumer business of Goodyear Dunlop, covering car, van and 4×4 tyres. He joins Goodyear Dunlop from Reckitt Benckiser, where his responsibilities included Sales Director for China, General Manager, Philippines and Regional Project Director, East Asia.