Goodyear Invests 50 Million Marks in Production Base Philippsburg
This year Deutsche Goodyear will invest a total of 50 million marks in new production facilities at its Philippsburg factory while simultaneously introducing more flexible working hours. Having obtained the agreement of the works council to a seven-day week (now 21 shifts per week instead of the former 17 shifts), productivity at the German Goodyear factory is now set to increase once more. The additional capacity thus created will be utilised chiefly to produce high-speed tyres, whose market importance in Germany has been rising steadily for several years. Central to the investment is super-modern machinery for the further improvement of product quality in the manufacturing process for high-speed tyres -–a market segment of central importance to Goodyear’s strategic development. The production volume of five million tyres at Philippsburg will remain unchanged for the time being, declared Leo Ruf, a member of the management, but the share of high-speed tyres in our annual production will go up by 700,000 to approximately four million units. The background: Since 1995 demand for technologically sophisticated tyres in high-speed categories of more than 240 km/h (speed indices W, Y and ZR) alone has grown by over 200,000 units per year in the German market. This interesting niche is estimated to double from 1.5 to at least three million units by the year 2001.
Continue ReadingDunlop Ceases Truck Tyre Manufacture At Birmingham
Dunlop Tyres UK announced today that it will cease truck tyre manufacturing at its Birmingham factory. 650 jobs from a total workforce of 1,700 will be affected. Car, light truck, motor sport and racing tyres will still be made at the plant. Dunlop says the move is part of a Europe-wide rationalisation process as a result of excess capacity in the European tyre industry and the current market situation.
Continue ReadingUlrich Ossowski Responsible For Truck Tyres
Ulrich Ossowski, Director, Commercial Products for Bridgestone/Firestone Germany has been made responsible for sales and marketing of total truck tyre aftermarket and original equipment business in Germany
Continue ReadingThe World of Wheels
The large manufacturers of car wheels, especially those cast of aluminium, are growing ever larger. Business is booming worldwide, but the financial results of most manufacturers in this field of activity are well below those achieved in other industries. Wheel manufacturers, on the one hand, suffer from the low ratings stock exchanges accord to car manufacturers and their suppliers, and on the other, because their products are regarded as low tech. But all the time big changes are taking place in the world of wheels – in the form of new technologies and an optimisation of existing products. New wheel technologies, however, are not the only decisive factor, another considerable influence is the car manufacturers’ aggressive pricing, well beyond what many a supplier can bear. Some wheel manufacturers focus their activities on the original equipment market in the belief that it will allow them to operate more cost-effectively. Others like to commit themselves to the refit markets because they think they can thus keep their ears closer to the market and be well-placed to offer car manufacturers superior development capability. Which way is the right one, or whether both can succeed – that is something we shall only know in a few years’ time. Of course the starting position is different from wheel manufacturer to wheel manufacturer and from car producer to car producer. In the comprehensive report in this and the following (April) issues we shall outline the trends in detail.
Continue ReadingBridgestone Aims To Gain Market Shares In Brazil
Japanese tyre manufacturer, Bridgestone is going for more market shares, especially in the truck tyre segment. This could effect the market leader Michelin, who has about 30% of the market. Bridgestone is also increasing the prices in Brazil for the replacement market by 8% and the OE market by approximately 10%. The only option to the price increase is to walk away from a losing money business.
Continue ReadingOne Hundredth Birthday of Gummiwerke Fulda
For the 17th year running Gummiwerke Fulda held its dealer conference in March, this time in combination with celebrations in honour of the company’s one hundredth birthday. Last year Fulda boss Bernd Hoffmann had to make do with the presence of Goodyear’s top man for Europe, Valensi, but this time the management representation could not have been better. Sam Gibara, CEO of the group, made his welcoming speech to about 1,500 guests from all parts of the world, with Valensi and Gerd Grünenwald, responsible for marketing and sales Europe, also very pleased to help the company celebrate. Last year in particular and recent years in general proved to be very good years for Fulda. Until a few years ago the Fulda brand was heavily dependent on ATU and Stinnes, but that is now completely changed. Fulda’s German turnover is now spread over many small customers. Turnover with the two large ones is still important, of course, but gone are the days of total dependence. In Germany Fulda sells more tyres than Goodyear, but one has to add that Goodyear prices (trade to user) are significantly above Fulda’s. In the more recent past Fulda has had to compete with, or be measured against, Dunlop as well. It will be very interesting to see where the emphasis of Gerd Grünenwald’s and his team’s multi-brand strategy will lie. Details can be found in the April edition of NEUE REIFENZEITUNG.
Continue ReadingYokohama Introduces New High-Performance Tyre A 539
In the last week of March Yokohama Rubber Co. presented the new A 539 tyre to the European trade press at the Japanese D-Parc (Daigo Proving Ground and Research Center). Thirty-three sizes of this tyre will be available in Europe, about 20 of them are already in the market, the remaining sizes to be introduced within the next four weeks. The A 539 has an asymmetrical tread pattern and, according to the manufacturer, the excellent qualities of sportiness, quiet running and good cornering stability on dry and especially on wet roads.
Continue ReadingMichelin Aims At Increasing Share In HP Sector
Michelin intends to increase its share of the growing and highly profitable high performance market. Any gain of market share would be at the expense of Pirelli and Continental.
Continue ReadingReifen Junginger Under The point S Roof
Speculation is now at an end: on 14th April, the German tyre sales company Reifen Junginger was sold. The new owner is Josef Herl, MD of point S Reifen Herl GmbH and one of the founders of sales cooperative Partner GmbH. Herl plans to completely restructure the new point S Reifen Junginger over the coming months.
Continue ReadingQuality Awards For Three Goodyear Facilities
Three Goodyear plants have become the first sites in the world to be certified under the new global ISO Technical Specification 16949. The plants are Fulda (Germany), Amiens (France) and the Luxembourg Technical Centre. TS 16949 is expected to be recognised as a standard by all car manufacturers worldwide.
Continue ReadingSave Gas With Goodyear
Goodyears Chief Engineer of Product Design has warned of the economic cost of tyre under-inflation as gasoline prices reach a new high in the USA. Petrol consumption and tread life are adversely affected. A Goodyear survey showed up to 28p.c. of vehicles had seriously under-inflated tyres.
Continue Reading“Only Over My Dead Body” – Goodyear And Dunlop Brands Remain In Competition
Sylvain G. Valensi (58), who has 34 years service with Goodyear, latterly as Vice President Goodyear Europe, has, since the joint venture with Sumitomo Rubber Industries (SRI), assumed the role of Vice President of Goodyear Dunlop Tires Europe. Talking to this magazine during the recent Reifen 2000 exhibition in Essen, he stressed that the major brands Goodyear and Dunlop will remain independent and will almost be in competition with each other.
Continue ReadingAlliance Tire Leaves Petach-Tikva
Israeli company Alliance Tire is to close its Petach-Tikva plant (Tel Aviv). Production will continue in the second Alliance factory at Hadera.
Continue ReadingA Change Of Emphasis For Kwik-Fit
In a speech at the conference which ran alongside the Essen Reifen 2000 exhibition, Sir Tom Farmer, Chairman and Chief Executive of tyre retailer Kwik-Fit, announced a change to the company’s famous slogan of Our aim is 100% customer delight. This, he said, is meaningless hype – nobody is delighted when presented with a bill for tyres, or an exhaust system, however good the service and product. Today’s customer is more sophisticated than his counterpart of a decade or so ago and he (or she) expects – indeed, demands – satisfaction when purchasing goods and services. Kwik-Fit’s new attitude to the customer is to try to give him what he wants and, if anything goes wrong, to move heaven and earth to rectify it. The words delight and satisfaction will disappear from adverts, letterheadings and the like, although Sir Tom said that service and customer care will continue to be a priority for Kwik-Fit. The move comes at a time when the company is undertaking its most aggressive-ever advertising campaign, offering four 12 and 13 tyres for £65, including valve, balancing and fitting. Never before have the company’s adverts featured prices so prominently, and never before have the prices been so cheap. Sir Tom Farmer says that the move is in response to actions by competitors and it is certainly having its effect on the tyre retail market. Kwik-Fit’s own house magazine underlines the aggressive nature of the campaign, saying that, if the prices are undercut, they will be reduced even further. This is war! says the article.
Continue ReadingContinental To Buy Back Own Shares
Continental AG is to buy back up to 10% of its own shares, worth around 260 million Euros at the moment. This could be seen as a precautionary defensive measure in light of the rumours regarding a planned takeover attempt by a German conglomerate. Weeks ago, Klaus Friedland, Chief Financial Officer of the Group, said that it was likely that the Group would buy back shares in order to give these to interested institutional investors at a later date.
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