Lassa partners with Borussia Mönchengladbach
Turkish tyre producer Lassa Tyres has sealed a partnership agreement with Borussia Mönchengladbach Football Club for the 2011/12 football season. The news follows an earlier contract that saw Lassa agree to partner with Bolton Wanderers in the UK as well as an advertising deal at RCD Espanyol in La Liga for the 2011/12 season. Both were brokered by London-based Samson Sport Consultancy.
Continue ReadingYokohama acquires YHI share in Chinese JVs
In order to fund other expansion programmes, YHI International Limited has sold its share in two joint-ventures it operated in China. In a disclosure made to the Singapore Exchange, YHI reports that on July 29 it entered into two agreements with Yokohama Rubber (China) Co. Ltd to sell Yokohama China its ten per cent stake in Hang Zhou Yokohama Tire Co Ltd and its 49 per cent share in Yokohama Tire Sales (Shanghai) Co. Ltd; the transaction will give Yokohama China 100 per cent equity in both joint venture operations. The stakes in Hang Zhou Yokohama and Yokohama Shanghai have been purchased for S$14,336,052 (£7.28 million) and S$7,999,944 (£4.06 million) respectively.
Continue ReadingAnalysts highlight ‘difference in momentum’ between Continental and Michelin results
Despite the fact that both Continental and Michelin reports second quarter/first half pre-tax profits (EBIT) broadly in line with expectations, financial analysts have highlighted the “difference in momentum” between the two firms’ results. According to Morgan Stanley, the intraday spread between the two stocks was 600 basis points when the results were announced on Friday 29 July. “Although we think Michelin can surprise positively in the second half, in the shorter term Conti should outperform thanks to improving momentum in consensus earnings,” Morgan Stanley’s Edoardo Spina commented, explaining the differential.
Continue ReadingGoodyear Q2 results 'another step on the path towards 2013 targets'
Richard J. Kramer, chairman and chief executive officer of Goodyear Tire & Rubber, says he is “very pleased” with the tyre maker’s “outstanding second quarter results.” Goodyear’s figures for the three months to the end of June, which were released on July 28, show a 24 per cent increase in sales to US$5.6 billion, despite a two per cent decline in unit sales. The results, Kramer added, “represent another step on the path toward our 2013 targets. They present confirmation that our strategies are right and that they are working.”
Continue ReadingTraxx Tyres: new wholesaler builds million tyre firm in under a year
Within four weeks of the company’s launch, Traxx Tyres secured new premises 15 minutes from London for the business’ head office. Walk in through the shining polished glass doors and you are greeted by the smell of new carpets and freshly unwrapped furniture. However, the first thing you notice is that this is not simply the administration department of a regional wholesaler, but rather the suite of ground floor offices and board rooms tell you that this operation is set up to be the nerve centre of a business with national aspirations. With the company having such impressive aspirations, Tyres & Accessories visited the Bracknell headquarters (Maxx House) to find out more about Traxx’s short history, recent achievements and plan for the future.
Continue ReadingPirelli doubles year-on-year net profit
Positive tyre sector demand was seen in Pirelli & C. Spa’s results for the six months ending June 30, 2011. A full 99 per cent of the Italian manufacturer’s group sales are made in the tyre sector and the company reports that results from the first half of the year “demonstrate continuous growth and improvement of all economic indicators.” In particular, a more than doubling of group net profits is attributed to ongoing efficiency programmes and, more significantly, the effectiveness of price mix actions that have seen sales increasingly concentrated in the premium segment, enabling raw material costs to be offset.
Continue ReadingDelticom “well prepared” for second-half following Q2 growth
Although Delticom reports the summer tyre trade in Europe has so far “lagged behind expectations”, the company behind mytytres.co.uk and some of Europe’s other best-known online tyre retail portals increased its year-on-year revenues and earnings during the second quarter of 2011. April was admittedly described as being a comparatively weak month for Delticom, yet the company says it managed to offset this with positive figures in May. The following month delivered a noticeable year-on-year increase in tyre sales, Delticom added.
Continue ReadingNew Michelin credit facility “in line” with debt refinancing strategy
On July 12 Compagnie Financière Michelin, a fully-owned Michelin subsidiary, signed a new credit facility to be used for general corporate purposes. This 1.5 billion euro multi-currency revolving credit facility, signed with a group of 21 banks, is intended to replace Michelin’s 2005-2012 1.5 billion euro syndicated line. Michelin states the new facility is “in line with the Group’s debt refinancing strategy.”
Continue ReadingSolvay notifies EC of Rhodia friendly takeover bid
Belgian company Solvay has informed the European Commission of its friendly takeover bid on Rhodia in order to gain the competition authority’s approval of the transaction. The cash takeover offer was first announced to Rhodia shareholders in early April, with Solvay saying it would pay 31.60 euros per share for the French chemical manufacturer. Rhodia’s board of directors unanimously recommended acceptance of the offer.
Continue ReadingToyo’s Shandong Silverstone acquisition finalised
Toyo Tire & Rubber’s acquisition of Chinese tyre maker Shandong Silverstone Luhe Rubber & Tyre, which was first announced on April 12, has now been finalised. The Japanese manufacturer reports the acquisition of 75 per cent equity in Shandong Silverstone has now been completed and the Shandong Province Industrial and Commercial Bureau has issued a business permit. Toyo’s paid in capital stands at RMB 330,138,000 (£31.8 milliion).
Continue ReadingDeparture, French-style: Miraton leaves – the market comes
Didier Miraton, at 53 years of age nearing the pinnacle of his strength and ability, is leaving the Michelin Group after 29 years. Miraton is taking his golden handshake and leaving quietly. The Michelin Group is also doing what it does so well in cases like this: Keeping quiet. Yet it is becoming increasingly clear that the departure of top-notch manager Miraton – who hoped to step into the leading position within the company following the retirement of Michel Rollier – is linked to a change in direction at Michelin. Managing general partner Rollier, a man known for his financial expertise, shared his power with both managing partners, Jean-Dominique Senard and Didier Marathon; it has been decided that when Rollier leaves Senard alone will take on leadership of the eleven-member Executive Board. It is likely that Miraton considered this measure an affront.
Continue ReadingVoith Industrial Services planning growth in wheel and tyre assembly operations
Voith Industrial Services has appointed Jack Callaghan in a bid to further expand the company’s business in wheel and tyre assembly operations throughout the UK and mainland Europe. Callaghan, who has more than 20 years’ experience in wheel and tyre operations in the automotive sector, has been appointed business development manager based at Voith Industrial Services’ UK headquarters in Warwick.
Continue ReadingRAC sale speculation began in March
Speculation that Aviva was planning to sell RAC begin in March 2011 and followed the earlier sale of a number of subsidiary motoring related businesses that came with the company’s 2005 purchase including Auto Windscreens, Lex (the vehicle leasing company) and the BSM driving school operation.
Continue ReadingCarlyle Group confirms it's buying RAC from Aviva for £1 billion
The Carlyle Group (an asset management firm) has confirmed that it has reached an agreement to acquire RAC Limited from Aviva plc for £1 billion. The deal is subject to regulatory approval, but is expected to complete by the end of the third quarter of 2011. Moving forward Carlyle’s strategic involvement appears to centre on the access to “additional capital for future investment” it can provide for expansion into other areas of motor service amongst other things. And the intention appears to be to expand “in the area of the motor services market.” Aviva bought RAC for £1.1 billion in 2005.
Continue ReadingGarage associations to bring European right to repair case
A legal enquiry has been commissioned into access to repair and maintenance information for independent repairers following a decision from the Committee on Internal Market and Consumer Protection, which is part of the European Commission. The RMI Independent Garage Association (IGA) along with CECRA, the European organisation which represents 260,000 independent repairers throughout the European Union, were invited, together with FIGEFA which represent the aftermarket through Europe, to give evidence before Gomez-Acebo a firm of lawyers who are conducting the legal enquiry.
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