Bridgestone Plans 50th Tyre Plant
After the company only recently confirmed plans to build its 48th tyre factory in Brazil, Japan’s Nihon Keizai is reporting that Bridgestone will build two more facilities. According to the newspaper the new factories will be built in China and Eastern Europe at a total cost of more than £253 million. The Chinese plant will produce bus/truck and passenger car products in China and is likely to be built in Huizhou, Guangdong province. As for Eastern Europe, a number of locations have been the subject of media speculation. Possible countries include Slovakia or Poland where Bridgestone already has a tyre factory.
Continue ReadingTitan Ranked Second For Stock Appreciation
Titan International has been ranked second in terms of stock appreciation in a list compiled from New York Stock Exchange (NYSE) companies. In 2004 the companies share price increased 393.5 per cent, second only to WR Grace & Co. The price of Titan’s stock grew from $3.06 on 31 December 2003 to $15.10 by the end of 2004. “We congratulate W R Grace for their outstanding stock performance,” said Titan president and CEO, Maurice Taylor Jr. “Seeing Titan’s market value reach the levels where we knew it should be is rewarding. An investment of $3,000 in TWI stock on the first trading day of 2004, would have been worth approximately $15,000 on the last day of 2004. The effort and commitment of our employees and stockholders have made it possible to return to profitability and to achieve this remarkable progress and recognition within the investment community.” Titans announcement marks a distinct turnaround in the companys financial performance. Little over a year ago Titan was in danger of being de-listed from the NYSE for having a very low share price.
Continue ReadingShocking Warning
Tenneco Automotive, has issued a winter warning about the risks of driving with worn shock absorbers, following research carried out by an independent institute. Tests carried out by GTS and TÜV Rheinland, two independent research institutes located in France and Germany, provided a graphic demonstration of how worn shock absorbers can render ABS, ASR and ESP systems significantly less effective.
Continue ReadingButton to Appear In Birmingham via Satellite
Jenson Button and the BAR-Honda Formula 1 team will show will launch the team’s new vehicle, the BAR-Honda 007, by satellite link. The new car will be unveiled at the Barcelona circuit in Spain at 11am (UK time) on Sunday 16 January and for the first time, visitors to Autosport International will be able to watch all the action as it takes place. Jenson is just one of three current Formula One drivers who are participating in Autosport International, Europe’s largest motorsport show. Red Bull Racing’s David Coulthard will be coming along to meet his fans on Saturday 15 January and Williams-BMW’s Mark Webber will be there to sign autographs on Sunday 16 January. Other British racing stars attending the show include Eddie Irvine, Allan McNish, Jason Plato and Andy Priaulx.
Continue ReadingTIC Records Results
Results from the North West England Tyre Safety Campaign held in October 2004 have shown “a substantial reduction in the number of danger tyres on vehicles on the roads,” according to the TIC. Police checks identified that the number of tyres below the legal minimum tread depth had fallen by just over four per cent compared with the previous years campaign.
Continue ReadingNokian Increases Share Capital
Towards the end of last year, Nokian Tyres increased its share capital by a total of 45,340 euros. The new shares are being traded on the Helsinki Stock Exchange together with the old shares. Nokian Tyres plc’s share capital now stands at 21,705,762 euros.
Continue ReadingMichelin Charming Europe
Michelin has extended its ‘charming places to stay’ guide range with the introduction of German and Italian editions, and the launch of the 2005 edition to France. This year’s range features a similar layout to previous editions where each section of the guide is colour-coded by geographical region, and each entry includes a photograph and short description, plus practical information.
Continue ReadingUSWA Ends Asheboro Unionisation Plans
The USWA has halted plans to unionise Goodyear’s Asheboro, North Carolina plant. So far there is no information about when the activity at the plant stopped or when the union will be allowed to mount a new campaign. According to information provided by the National Right to Work Foundation (NRWF), “Under the terms of the settlement, USWA union officials may not use the ‘card check’ unionisation schemes in any future organisation attempts at the Asheboro Goodyear facility.” In a statement Goodyear North America communications manager, Amy Brei stated that the company has cooperated fully with the National Labour Relations Board (NLRB) and will continue to do so. She said charges in the complaint centred around whether a neutral arbitrator properly accounted for employees who revoked written union authorisation cards they had previously signed. “Goodyear did not ‘ignore’ the revocations; they were presented to the neutral arbitrator for his consideration. Goodyear associates have been - and always will be - free to choose whether or not they want union representation.” Speaking to local newspaper the Asheboro Courier, USWA area representative Brad Smoyer stated a desire to continue the organising drive, adding that the USWA will assist workers in that effort. He said officials found no evidence of coercion by the USWA or Goodyear during the 2004 union drive. The NRWF was clearly pleased with the result: “This victory is a step towards holding union officials across the country to account for trampling workers’ rights under abusive ‘card check’ schemes,” said Foundation vice president Stefan Gleason in a press release. “While encouraging, its an outrage that Goodyear struck a backroom deal with USWA officials in the first place to deny these workers the freedom to decide their own representation through the less abusive secret ballot election process.” cja
Continue ReadingChina to Formulate Tyre Industry Policy
The Asia Pulse new agency is reporting that an official from the Chinese State Development and Reform Commission recently said the government is soliciting suggestions from relevant parties on a draft tyre industry policy. The policy, devised by the China Association of Rubber Industry and China International Engineering Consulting Corp, is expected to be made public in the first half of 2005, after it has been revised. The new industrial policy is expected to support enterprises developing advanced technology, encourage the production of radial tyres and slow down the production of bias tyres. According to the draft policy, China will adopt market access management for tyre industry and work out compulsory technical rules relating to tyre quality, safety, environment protection, energy-conservation and raw material consumption. A memorandum and approval system will be introduced to newly established tyre factories or tyre expansion projects invested by domestic and foreign investors. Relevant requirements will be imposed on the amount of investment, technical ability and products for new tyre projects. The policy will also standardise the tyre import market and ban any forms of waste or used tyre import.
Continue Reading2005 Golden Opportunity for Michelin
The new Formula 1 season will bring with it a “giant chance” to finally challenge for the world championship, Niki Lauda told the Home of F1 news services. The former Ferrari driver said new regulations often represent a “golden” opportunity to beat the pacesetter. “Above all I see the new tyre rule as a chance for them” Niki Lauder said referring to the new rule limiting teams to a single set of tyres for both qualifying and the grand prix. When it comes to developing a brand new F1 tyre, he continued, Michelin have a distinct advantage for 2005. “They have much more data, for example of Mercedes, BMW, Honda and Toyota, while Bridgestone has only Ferrari. And we know that tyres dictate victory and defeat,” he explained.
Continue ReadingBridgestone Makes Tsunami Donation
Bridgestone is to donate 100 million yen (roughly £500,000) to disaster relief aid intended for victims of the recent Indian Ocean Tsunami. The money will be distributed through the Japan Red Cross which will allocate funds at its discretion. The company’s subsidiaries in Thailand, India, Indonesia and Malaysia will make separate contributions to local relief efforts. Continental and Michelin have also donated to the cause.
Continue ReadingBandag Continuum with OTR
Bandag is set to introduce a new line of off-the-road precure retreads to the American tyre market. The new range, Continuum, is designed for light and medium earthmover tyres and includes two serpentine tread designs, which, in Bandag’s words have been created to offer “greater flexibility than other retread application methods and products.”
Continue ReadingBridgestone’s Shares Fall
Bloomberg has reported that Bridgestone Corporation shares fell by up to two per cent after the Nihon Keizai newspaper reported that the company is expecting its first decline in pretax profit in four years. Bridgestone stock fell by as much as 40 yen to 1990 yen after gaining 42 per cent during the course of the last year. The Nihon Keizai reported that the tyre manufacturer’s pre-tax profits are likely to fall by 17 per cent to 150 billion yen (£763 million) because of an increase in the price of oil and other raw materials. The newspaper did not specify where it obtained its information. “It is based on the newspapers own reporting,” Bridgestones spokeswoman Setsuko Ozaki said, declining to comment on the report. According to Bloomberg, Bridgestones 2005 sales may rise 4 per cent to 2.5 trillion yen. Bridgestone may also report a record group net income of about 140 billion yen, up 30 per cent, after changing its employee pension fund system, the Nikkei newspaper said. Last month Bridgestone said it would raise the price of its tyres in 2005 in order to protect earning from rising raw material costs. Bridgestone and Firestone branded tyres used in passenger cars, trucks and buses will rise by between 5 per cent and 10 per cent, the Tokyo-based company said on 8 December.
Continue Reading‘Welcome to the World of Motortainment’
The new A1 Grand Prix series is set to commence in autumn next year. As the latest edition to the motorsports calendar it is not being viewed as competition to F1 and has managed to position itself in a different sector of single seater racing. Known as the World Cup of Motorsport, A1 differs from the current F1, in that the contenders will represent their home countries and all cars will have the exact same specifications having been built by the same manufacturer. The sport will use 3.4-litre V8 engines, mounted on a Lola chassis and fitted with Cooper tyres. Founded by Sheikh Maktoum, a member of the ruling family of Dubai, and businessmen Brian Menell and Antonio Teixeira, the FIA sanctioned series will run in motor racing’s traditional ‘off’ season. It is described by the organisers as being unique in the fact that it brings together a sustainable business model with the high speed excitement of motorsport. Amongst the countries that have secured their place so far are the UK, South Africa, China, Portugal, Pakistan, Lebanon, Australia, Canada and Malaysia. The participants represent more than 80 per cent of the world’s population. And Dubai, Bahrain, Qatar, China, South Africa, Malaysia, Indonesia, Japan and Australia have already been selected to host the first A1 Grand Prix season, and there is still the possibility of a further two events. There has been much emphasis put on the fact that the sport will provide a patriotic atmosphere between contenders and their supporters, with chairman of the South African team, Tokyo Sexwale, commenting: “ It will create a new patriotic edge to the sport, and add a new dimension to one of the most popular sports in the world. We are proud and pleased that there will be a South African entrant in this exciting global event. We fully subscribe to the need to spread motor racing away from its traditional European and North American roots and into the developing world. Welcome to the world of Motortainment.” One of the essential elements of the A1 GP is that it needs to be thrilling to watch. The belief that it will be a compelling spectacle for all motorsport fans was strongly endorsed when Sky Sports bought the broadcasting rights for live coverage in the UK, of not only the races, but also the practice and qualifying sessions. Sky Sports managing director Vic Wakeling said: “We have been sold on the concept of a genuine test of driving skills and it has the added attraction of providing us with more international sport throughout the winter months.”
Continue ReadingBridgestone’s Shares Fall: Update
Deutsche Bank analysts have cast doubt on the negative predictions published in the Japanese business press. According to the market observers, reports that Bridgestone’s recurring profit is set to fall 17 per cent year-on-year may not be as accurate as they seem. Although the article cites high raw material costs and yen appreciation, it fails to take into account tyre price increases, which started being implemented in Japan last year. The analysts explained that in the last few year Bridgestone has recorded strong earnings, defying the Nikkei’s projections. As a result the bank says it will not change its earning projections or rating, adding that if the share price dips below 2000 yen this would represent “an attractive investment opportunity.”
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