Bridgestone Appoints New Vice President
Bridgestone Europe (BSEU) has promoted Gunter Unterhauser to the position of vice president, sales and marketing. In his new position Mr Unterhauser will be responsible for pan-European aftermarket sales, while maintaining responsibility for the German market. Minekazu Fujimura, BSEU chairman, CEO and president, will continue to be responsible for the company’s OE business. Mr Unterhauser was previously managing director of Bridgeston Firestone Germany.
Continue ReadingKumho to Make International Listing
South Korea’s largest tyre manufacturer, Kumho Tire, is planning a dual stock market listing in Seoul and either New York or London, the Financial Times has reported. Such a move would be worth more than $1.5 billion, according to the newspaper. The listing is expected to take place in the first half of next year. Kumho is believed to have hired JPMorgan to manage the sale of at least a third of its shares in a move that could raise more than $500 million. One of the company’s major shareholders, the Military Mutual Aid Association (MMAA), owns 50 per cent of the company and stands to make a 40 per cent return on its original investment. Kumho and JPMorgan have declined to comment.
Continue ReadingAmtel Expands into Europe
Following the news that Amtel was in “detailed discussions” with Vredestein Banden, Amtel president, Sudhir Gupta has confirmed that his company will buy Vredestein Banden and that it is planning initial public offerings (IPO) in London and Moscow in the next two years. According to Dr Gupta, Amtel is planning a primary listing on the London Stock Exchange followed by a secondary listing on the Russian Stock Exchange. In a conversation with far eastern business publication, Business Times, Dr Gupta explained why the IPO would take place in London and not New York. “Europeans always understand Russia better than the Americans and most of the investment in Russia is European. That’s why we think London is a better place to list.” The secondary listing is also the result of ‘encouragement’ from the authorities for successful companies to list on the Russian Stock Exchange, and because “the stock exchange has good liquidity because of high oil prices.” The listings are due to take place in one of two time frames; either October to November 2005 or April to May the year after, the Amtel president said. Currently, Dr Gupta owns about 85 per cent of Amtel. An international investment fund managed by Templeton Asset Management Ltd, owns 5.65 per cent, while 10 per cent of Amtels shares were recently sold in a private placement for $34.2 million. These shares were bought by about 22 institutional investors in Europe, the US and Russia. It is clear that a key part of Amtel’s expansion plans will involve venturing outside of Russian borders. One part of this is the company’s purchase of Vredestein Banden. By purchasing the Dutch company, Amtel appears to have been aiming to buy a ready-made foothold in the market. At the moment Vredestein sells 40 per cent its tyres in Europe’s biggest market (Germany) and has well organised distribution operations across Europe.
Continue ReadingFrench MRT Franchise Renews Contract
Robert Bernard TRM, the first Michelin Retread Technologies (MRT) franchise in Canada, has renewed its contract with MRT for another five years. “We are pleased to renew our strong partnership with Robert Bernard TRM,” confirmed Guy Pekle, president of MRT Canada. “As the demand for MRT products strengthen and our growth continues, we remain committed to finding lower cost solutions for customers.” Jocelyn Bernard, vice-president of Robert Bernard TRM Ltée added “our existing structure allows for the sale of high-end MRT products on the road, via our retail distributors and Michelin partners. We are confident that market response will be as good as it has been for the last five years where we have seen consistent, annual growth.” Michelin says it will continue to focus on the independent dealer and franchises, noting that there are now more than 230 points of sale in North America for Michelin retreads.
Continue ReadingBridgestone South Africa Expects Loss
Bridgestone Firestone Maxiprest (BDS) said it is expecting to make a loss of between 35 million rand and 45 million rand (£3-4 million) for the year ending December 2004, Business Day, Africa Reports. The news comes as the result of difficult trading conditions, further write-downs and provisions arising from the restructuring of the groups operations, the company says. However, it also said the restructuring of its operations should set a base for improved performance in 2005. The group also announced that Mr T Wada, the non-executive chairman of the company, will be returning to Japan during the course of December 2004 and has resigned as chairman and director of the company. Mr Y Ito, the non-executive chairman and CEO elect of Bridgestone South Africa (Pty) Ltd, has been appointed as non-executive chairman of Bridgestone Firestone Maxiprest Limited.
Continue ReadingEuropean Car Sales on the Increase
Northern European car sales are set to increase by up to 9 per cent, market analysts from Deutsche Bank are predicting. According to the bank sales could turn out strongly rising roughly 9 per cent. The reason behind the growth is said to be down to a number of factors including an 11 per cent increase in the German market, two additional selling days in the month and a number of significant launches.
Continue ReadingYokohama Offers Global ADVAN-tage
Japanese based tyre manufacturer, Yokohama has officially launched its Advan brand. In an effort unify its global image, the company will now adopt one name for its premium products instead of the regional variations that currently exist. According to Yokohama, the newly launched brand reflects the company’s “highest performance” and “highest quality” image. The Advan name will adorn all of the company’s new global high performance products. At the same time as launching this new product concept, the company also released two new Advan branded products, the Advan Sport and Advan ST.
Continue ReadingSEMA and VDAT Make Agreement
Specialty equipment associations SEMA and Verband Deutscher Automobiltuner (VDAT) have signed a memorandum of understanding to promote increased cooperation between their associations and member companies. Working more closely together with our friends at VDAT will greatly enhance the ability of the specialty equipment industry to grow on both continents, said Christopher J. Kersting, SEMA president and CEO. It is essential that we join forces with our friends in Europe to be proactive regarding legislative and regulatory proposals which hamper the ability of consumers to personalize their vehicles. As a result of the agreement, SEMA and VDAT will become members of each other’s associations and exchange market and other information of mutual interest to members. In addition the associations say they will work together on legislative and regulatory developments affecting the industry in both markets and meet regularly to promote closer relations between organisations. I am very much looking forward to our cooperation with SEMA, said Hans-Joerg Koeninger, VDAT general manager. We will work together with this powerful trade organization for uniform and clear regulations for the approval of tuning products. Demonstrating their solidarity SEMA exhibited as part of the VDAT booth at the Essen Motor Show. VDAT will have a booth at the annual SEMA Show.
Continue ReadingPirelli’s Commitment to Telecomms Becomes Clearer
Marco Tronchetti Provera, boss of both Telecom Italia (TI) and Pirelli, is to force the merger of TI with its daughter company Telecom Italia Mobile (TIM), Italian media sources are reporting. According to the Italian media, TI is aiming to submit an official requirement for the 44 per cent of TIM, which is still in circulation, next week. The cost is estimated at 19 billion euros. Olimpia Holding is TI’s dominant shareholder, while Olimpia itself is controlled by Pirelli.
Continue ReadingAutopromotec ‘Closes the Circle’
According to the organisers of the 21st Autopromotec, the 2005 show will “close the circle, offering the entire gamut of products and services to the transportation industry.” The exhibition centre where the show is due to be held will undergo renovations and expansion, including the addition of two brand new halls. At the last Autopromotec in 2003, 936 exhibitors presented their products in an area measuring 100,000 square metres, with 83,000 visitors. At the forthcoming event, the traditional sectors of equipment and tyres will be represented alongside the new categories of spare parts and car services. From the organisers’ point of view, adding the new product categories to the fair is a welcome benefit to Italys industry of vehicle spare parts, a sector that recorded revenues of 7.7 billion euros, 68 per cent of which was designated for export. As a result of the new block exemption rules, this industry will be forced to re-examine traditional distribution channels by adapting them to the market. According to those in charge of Autopromotec, this is a good reason to make the most of every opportunity to have contact with professional mechanics, adding that the show also provides the chance for manufacturers to “step up marketing manoeuvres and new product launches.” By the time Autopromotec opens its gates, the BER, or Block Exemption Regulation, will have gone into effect. That will be followed by the “freedom of establishment” provisions on 1 October 2005, which will allow sales and auto servicing operators carrying out selective distribution to open branches in all EU countries.
Continue ReadingNew Technology Simulates Tyre Behaviour
A new supercomputer based technology has been developed in order to simulate tyre performance. The new technology, devised by Bridgestone and dubbed Comprehensive Road Surroundings Simulation (CROSS), promises to raise efficiency in developing optimal tread patterns. The system is able to simulate tyre behaviour on unpaved roads and off the road and in sunny, rainy, and snowy conditions. Bridgestone believes its new technology will help streamline work in optimising tread patterns on tyres for four-wheel-drive vehicles, earthmoving equipment, agricultural machinery, all-terrain vehicles, and other vehicles that operate on unpaved surfaces. Bridgestone’s announcement comes after engineers from the company presented a paper on terramechanics, the behaviour of soil under loads, at a September conference of the Tyre Society in the US. Terramechanics simulation technology is the latest addition to Bridgestones portfolio of simulation tools. The company announced new hydroplaning simulation technology in 1999 for analysing water flow under tyre treads on wet surfaces. In 2001, it announced technology for simulating tyre performance on snow.
Continue ReadingContinental Completes Repayment of Bond Loan
As announced two weeks ago, Continental has now completed the repayment of a 500 million euro bond loan. In doing so Continental has now undertaken another step on its way to reducing its debts. The German automotive supplier envisages that the sum will be repaid at 104.39 per cent by the 7 December. The bond loan that was issued in 1999 at 5.25 per cent was originally due for 2006.
Continue ReadingCeat launches all steel truck radials
Ceat has entered the Indian all-steel truck radial market, with products designed and manufactured for the Indian market by Pirelli, Europe. In the 2004/2005 financial year, the company projects a sales turnover in the region of 19.05 billion rupees (approximately £220 million). Ceat says it is eager to tap into the growing truck radial market hoping that eventually 10-15 per cent of its business will come from steel radials. Currently the use of truck steel radials in India is about two per cent, the is considerably less than neighbouring Pakistan (35 per cent) and a world apart from Europe (90 per cent). The proportion of steel readial in the Indian truck tyre market is projected to touch 10 per cent by 2007, Ceat’s vice-president, sales and marketing, Kalyan K Paul, said. According to the company, the use of its truck radial products can increase initial mileage by over 50 per cent, achieve fuel savings off up to 10 per cent and provide better traction and braking.
Continue ReadingCooper-Standard Sale to Go-Ahead
Cooper Tire has been given the ‘go-ahead’ to sell four of it Cooper-Standard Automotive plants having reached an agreement with the United Steelworkers of America (USWA) union. As a result an appeal to the US 7th Circuit Court of Appeals will be dismissed. Previously Cooper had been under an injunction granted on 2 November, by the US District Court in Indiana. This followed a complaint filed by the USWA asserting the right to negotiate new labour agreements with a buyer before a sale of the four union facilities. Cooper has already announced a definitive agreement to sell Cooper-Standard Automotive for $1.165 billion to an entity formed by The Cypress Group and Goldman Sachs Capital Partners. I am pleased that the talks with the Steelworkers have produced an expedited and favorable conclusion, said Thomas A. Dattilo, Cooper’s chairman, president and CEO. Mr Dattilo added: We have continued working toward closing our transaction with the Cypress Group and Goldman Sachs Capital Partners throughout the process of negotiating with the union. This agreement certainly brings us closer to concluding the sale of Cooper-Standard Automotive, without any additional cost to Cooper Tire & Rubber Company. We continue to believe that the transaction will close before the end of the year. Exact details of the agreement have not been released. Cooper expects its deal with Cypress/Goldman Sach to be completed by the end of the year.
Continue ReadingTitan Wheel Signs to Supply Deere & Company
Titan International has announced that its Titan Wheel Corporation subsidiary has signed a supply agreement with Deere & Company. According to the company, the agreement secures wheel pricing with Deere for three years. The agreement excludes raw material price increases or decreases, these will be passed on to the customer. ”This is a very beneficial contract for both companies. Deere is ensured uninterrupted wheel supply and agreed upon pricing. In exchange, Titan will receive minimum order quantities and more accurate forecasting from Deere to increase productivity,” stated Maurice Taylor Jr., Titan president and CEO. “We congratulate the Deere team led by chairman and CEO Robert Lane on their record year, and the outlook for 2005 remains positive. Titan looks forward to growing with Deere and the rest of the agricultural and construction markets.”
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