KPMG Welcomes “Steady Injection of Government Support”
Following business secretary, Peter Mandelson’s announcement that the UK government will be extending its car scrappage scheme to February 2010, as well as including van owners in those eligible for scrappage discounts, the auto director at ‘Big Four’ professional services firm, KPMG has said that he welcomes the government’s support for the industry:
Continue ReadingGovernment Extends Scrappage Scheme to Include Vans
The UK government is to extend the successful “bangers for cash” scrappage scheme until February 2010 with £100 million in extra funding. Alongside the increased funding the government will work with manufacturers to extend the benefits to van owners with vehicles over 8 years old rather than the current 10 year requirement. Car owners will also get a boost, with the age qualification changed by 6 months to extend the benefits to cars registered on or before 29 Feb 2000 (V registration). The scheme will come to an end in February 2010 or when the funding runs out, which ever is sooner. So far 227,750 orders have been placed through the scheme. The increased funding enables the scheme to fund a further 100,000 vehicles, bringing total budget to £400 million and covering up to 400,000 vehicles in total. The extension continues as a government and manufacturer partnership, with matched funding providing the £2,000 discount for each scrappage order. Announcing the news Business Secretary Lord Mandelson said: “The sector has been strongly affected by the recession, but the scrappage scheme has delivered a boost to manufacturers and the supply chain. We have listened to the concerns of manufacturers and are increasing the funding of the scheme to £400 million.”
Continue ReadingTechnical Tire Consulting: Performance has it Roots in the Process
TTC stands for Technical Tire Consulting, a team of specialists with many years’ experience in the field of tyre manufacturing and familiarity with the latest technologies. During their time in the business the consultants have been responsible for building world class manufacturing facilities, such as those producing drop centre tyres, and have knowledge of all aspects of the business at their fingertips.
Continue ReadingFrench Government to Phase Out Scrappage Incentives
After pioneering the so-called “cash for clunkers” scrappage incentive model in 2008, which was then mirrored in all the major European markets, the French government has announced that it is phasing out its 1000 euros for a 10 year-old car stimulus package. According to financial analysts, this measure had a net positive impact on demand of approximately 200,000 units, or 10 per cent of the market against a gross market impact of 400 units. The developments in the French market follow the rather more abrupt end of a similar scheme in the German market, where demand for cars purchased under the scheme exceeded supply on 2 September. According to a Deutsche bank report published at the time, the scheme was responsible for 9000 unit sales a day since its introduction. To avoid a free fall of the market next year, Germany’s car market for example is expected to be 25 per cent down in 2010, the French government has decided to reduce its scheme progressively. Next January the incentive will drop to 700 euros before dropping to 500 euros next July and hitting zero in January 2011. As a result, Deutsche Bank analysts are predicting “a limited decline of French registrations in 2010 of around 1.9 million units, -5 per cent.”
Continue ReadingHayes Lemmerz Realigns Global Operations
As of September 1 Hayes Lemmerz International has realigned its global operational sites into three regions. According to company president and COO Fred Bentley, "The purpose of the realignment is to become more strategically focused in the operation of the business by aligning the organisation into specific regions. This realignment allows us to continue our global focus on the customer base while creating additional efficiencies from the functional support groups. This is a great move for our business and allows us to continue to develop our future leaders." Mustafa Zaim, managing director of Turkish Operations, will continue in his present role as managing director and will also assume the additional responsibilities coordinating Global Materials management as well as act in an advisory capacity to the EAAP region on operational matters. Zaim will continue to report to Mr. Bentley.
Continue ReadingSMMT Calls for Extension to Scrappage Scheme
The SMMT has written to business secretary Lord Mandelson asking for an extension to the scrappage scheme, which is otherwise predicted to end in November. SMMT is asking for the scheme to be extended through to the original closing date of the end of February 2010, to counter the likely negative impacts of a return to the higher rate of VAT and the introduction of the first year VED rates. After 15 months of consecutive decline in the new car market, the scrappage incentive scheme has reignited demand, says the SMMT, resulting in year-on-year growth in July and August and a dramatic cut in the rate of decline in vehicle production. Since it began over 100,000 new vehicles have been registered under the scrappage scheme, with an order bank of a further 100,000 suggesting the scheme will run out of funding in late October/early November. 76 per cent of cars bought under the scrappage scheme were classified in the Mini or Supermini segments. SMMT now forecasts the new car market to end 2009 at 1.85 million units, above pre-scrappage forecasts but well below the 2.47 million pre-recession five year average. One fifth of the cars registered were either built in the UK or have an engine produced here.
Continue ReadingOrganisers Note Tyre Market Upturn as Exhibitors Sign-Up for Brityrex 2010
The organisers of Brityrex International have welcomed an upturn in business confidence among tyre sector suppliers as companies continue to invest in next year’s exhibition in Manchester (5, 6 and 7 October) ECI International have confirmed a “healthy” amount of new bookings for the show from “a broad cross-section of domestic and international tyre and automotive specialists.” Managing director Paul Farrant explained: “There’s no doubt that the market in general is feeling more positive about future prospects than it was six months ago. Speaking to many businesses of all sizes in the tyre, equipment and accessories sectors, it’s clear there is a willingness to consider investing in exhibitions and promotion. That confidence is refreshing and bodes well for Brityrex as well as day-to-day business activity.” Among the latest companies to commit to the next Brityrex are Daly Tyres, the Irish distributor that has recently opened a new wholesale division in Stoke-on-Trent. This will concentrate on distribution of Taiwanese brand Kenda, with Daly managing director Eamon Daly explaining: “Kenda is a very progressive company and we view them as a great partnership for our business. Brityrex will be the perfect platform to market Kenda and our other product ranges and will be the place for UK and Irish retailers to meet suppliers covering all aspects of the tyre business.”
Continue ReadingUS Imposes 35% Tyre Tariff, China Plays Chicken
President Barack Obama’s decision to apply a 35 per cent import duty on all passenger car and light truck tyres from China for a period of three years may have been intended to “remedy market disruption caused by a surge in [Chinese] tyre imports” into the US, but it has also provoked a sharp response from the Chinese ministry of commerce and played havoc with the share prices of Far Eastern tyre manufacturers. China’s state media said the US import duties would cost 100,000 jobs and $1 billion (£600 million). Announcing the decision (on Friday 11 September 2009), the White House explained that the 35 per cent ad valorem levy would be placed in addition to the existing 4 per cent import duty on imports of Chinese-product passenger car and light truck tyres. The duty will reduce to 30 per cent ad valorem in the second year, and 25 per cent ad valorem the third year. The US International Trade Commission had recommended a 55 per cent tariff in the first year, 45 per cent in the second year and 35 per cent in the third year.
Continue ReadingNynas to Supply Lanxess Rubber Production Following DAE Ban
To maintain its production of synthetic rubber after its utilisation of DAE oils ceases, Lanxess AG will enter into a strategic co-operation with Swedish oil producer Nynas. Lanxess will end the use of DAE oils in its synthetic rubber production as of December 1, 2009, ahead of next year’s European and Japanese bans on the substance.
Continue ReadingHankook Ruled Liable for Employee Deaths
A provincial court in Korea has found factory chiefs and senior researchers of Hankook Tire guilty failing to prevent a series of work related deaths. The Korea Times reports that on August 14 the Daejeon District Court sentenced a factory chief, identified as Lee, 52, to eight months imprisonment, which was suspended for two years, and fined him three million won (£1.46 million). Another factory manager, Jung, 47, was given six months in prison, suspended for two years, plus a fine of two million won. The two men worked at Hankook’s Daejeon and Geumsan factories, where 14 workers died within 17 months.
Continue ReadingBFGoodrich, USW Reach Tentative Agreement
An agreement has been reached between BFGoodrich and United Steelworkers representatives regarding the approximately 2,500 USW represented employees at the tyremaker’s Tuscaloosa, Alabama and Fort Wayne, Indiana facilities. The agreement addresses the terms BFGoodrich believes necessary in order to remain competitive, however the details of the August 15 tentative agreement will not be disclosed until […]
Continue ReadingCTNA Exceeds Environmental Goal in First Year
Continental Tire North America reports having officially exceeded its goal of increased compliance with the US Environmental Protection Agency’s SmartWay Transport Partnership during its first year of participation. Continental first joined the SmartWay Transport Partnership in June 2008 as a Shipper Partner, committing to reduce its environmental impacts from ground freight transportation. In joining the partnership, the tyre manufacturer agreed to use the Freight Logistics Environmental and Energy Tracking (FLEET) Performance Model for Shippers to quantify its environmental performance level. Continental was then required to maintain a score of at least 0.5 within the FLEET Performance Model.
Continue ReadingCooper Aims for Double-Digit Growth in China
Cooper aims to maintain its double digit growth in China over the coming years. The company’s vice president and general manager of Asia operations, Allen Tsaur, reports Cooper’s revenues in China last year to be close to five billion yuan, a figure he describes as contributing a “significant portion of Cooper Tires’ global revenue.”
Continue ReadingGoodyear, USW buy Time with 2 Week Contract Extension
Goodyear and the United Steelworkers of America have agreed to an extension of their national contract, taking their agreement up to 29 August.
Continue ReadingGet Out and About With Continental Tyres
Continental Tyres is promoting discount deals for family days out at over 300 attractions across the UK this summer.
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