Asia Vital To Auto Industry – Report
Automotive consultants Autopolis pinpoint Asia as critical to the worlds car and truck manufacturers in the coming years. While sales are expected to continue falling in Europe and North America, over the next decade sales in Asia (excluding Japan) will grow at over seven times the global average, autopolis predicts, with the fastest growth in China and Thailand. Sales of vehicles in China for the year 2010 are predicted to be 4.75 million; more than double the figure for the year 2000.
Continue ReadingCar Manufacturers In Joint Procurement Plan
Hyundai, DaimlerChrysler and Mitsubishi are said to have held talks exploring ways to jointly develop and purchase parts. The procurement talks were held in Hyundais Seoul HQ and covered parts purchased in the US, Japan and Europe in addition to South Korea.
Continue ReadingMaloya Futura Sport W
Maloya, the Swiss subsidiary of Vredestein, has introduced a W-rated tyre, the Futura Sport W. The tyre comes in two 45-series sizes, for 17 rims and has a directional tread and silica tread compound.
Continue ReadingBridgestone Is Running Ahead Of Competition In The USA
The year 2000 tyre recall, with all its consequences and financial difficulties, is more or less over. Sales in North America are strong, plus the performance of the Firestone brand has been stabilised, while the Bridgestone brand managed a growth of 30%, said John Lampe, CEO of Bridgestone/Firestone Americas Holding Inc. yesterday on TV. The fact that Lampe (who has turned out to be a charismatic leader by virtue of his tough battle with his biggest customer Ford, admired by all Bridgestone/Firestone employees in America) appeared on TV this week is another blow for the morale of Goodyear people. Last week they were told by CEO Gibara and his successor from the 1st of January next year, Keegan, that the Corporation has lost market share and has been unable to produce good results on its home market so far. This is forcing the company into the next round of restructuring and cost saving measures. According to Gibara the company is no longer able to pay the health costs at the same high rates as in the past, but has to reduce these costs immediately. This is a consequence, said Gibara, of fierce competition. Employees also fear that the company might lay off thousands more associates in order to reduce costs.
Continue ReadingPrice-Fixing Investigation Into Chemical Firms
Three companies which supply chemicals for tyre manufacturing are being investigated for possible price fixing. Investigations are on-going in both the USA and Europe into Bayer AG, Flexsys NV and Crompton Corp. Experts estimate that sales of rubber-processing chemicals in the USA are worth around $900 million annually.
Continue ReadingFiat Auto To Lay Off Up To 8,000
Later today, Fiat Auto will reveal its restructuring plans to unions. There is speculation that up to 8,000 workers - 20 per cent of Fiat Autos workforce - could be laid off. Fiat Auto lost 813 million Euros in the first half of the year and there are rumours that the company will be sold to GM. Two years ago, GM acquired 20 per cent of Fiat Auto and the Italian company has the option to sell the remaining 80 per cent to GM after January 2004.
Continue ReadingSupreme Court Turns Down Cooper Appeal
The US Supreme Court has refused to hear an appeal from Cooper Tire and Rubber against a $3.3 million jury award in a 1995 rollover case. Cooper appealed the decision, calling the amount so excessive that it violated the constitutional right to due process.
Continue ReadingMaxxis To Build Plant In Thailand
Maxxis International, perhaps better known in the tyre world as Cheng Shin Rubber, is to build a new factory in Thailand to produce passenger and light truck tyres. Phase 1 of the multi-phase project will be completed in late 2004, when the factory will be producing 10,000 tyres a day, employing 1,700 staff. The site, in Rayong City, south of Bangkok, covers 72 acres. This new venture is the latest in a series of expansions for Maxxis; it is expanding its factory in mainland China, has moved to a larger distribution centre in California and expanded its US HQ in Suwanee, Georgia.
Continue ReadingIndian Merger Moves Closer
The proposed merger between JK Industries, Indias third-biggest tyre manufacturer, and Vikrant Tyres, initiated in 1997 when JK bought the majority of Vikrant shares, has moved a step closer with the announcement that Vikrant stockholders would receive two JK shares for every five outstanding Vikrant shares held. No timescale or deadline was discussed. The merged business would have around 25 per cent of the Indian commercial vehicle tyre market, says JK Industries.
Continue ReadingGoodyear GB Sells Wolverhampton Site
Goodyear Great Britain has sold its Wolverhampton manufacturing site to Birmingham-based St. Modwen Developments Limited and entered into a 10-year, extendable lease-back agreement which will enable production to continue. Financial details were not revealed. Wolverhampton was Goodyears first factory outside North America, opened in 1927. Production has fallen due to lack of competitiveness and clerical jobs have been relocated to the new HQ at Tyrefort in Birmingham. The sale/lease arrangement allows production to continue and for Goodyear to release value from the 88.6 acre site.
Continue ReadingEuropean Commission Gives CVC Green Light On Kwik-Fit Purchase
The European Commission has approved the sale of Kwik-Fit to equity group CVC Capital Partners for 330 million Pounds. The EC said that there were no overlaps between Kwik-Fit and CVCs other interests in the motor vehicle sector, saying that the transaction is compatible with the Common Market.
Continue ReadingGoodyear Declares Dividend of 12 Cents per Share
Directors of The Goodyear Tire & Rubber Company declared a quarterly dividend of 12 cents a share. The dividend is payable December 16, to shareholders of record November 15. The payout represents an annual rate of 48 cents per share.
Continue ReadingAshley Croft Leaves Stapleton’s – Mike England Takes Over
Ashley Croft has resigned for personal reasons as Managing Director of Stapletons Tyre Services, effective from October 1st - a post he has held for three years. He is succeeded as MD by Mike England, formerly the companys Retail Director. Ashley joined Stapletons straight from university 27 years ago when the company was a family-run organisation. Stapletons Tyre Services was bought by the Japanese Itochu Corporation in late 1994.
Continue ReadingTruck Tyre Prices To Rise In UK
Good news for manufacturers and truck tyre distributors in the UK - truck tyre prices of several leading brands are set to increase. Goodyear prices have already been increased by 3.5 per cent and Bridgestone prices are set to rise by an average of 3.5 per cent also. Pirelli has confirmed that it will increase its truck tyre and retread prices by 4 per cent in November and Michelin is said to have increased new truck tyre prices by 3 per cent, Remix prices by 2.5 per cent, with no change to Encore prices. The rising cost of raw materials is cited as the main reason for the increases.
Continue ReadingKeegan Becomes Goodyear CEO
Robert J. Keegan (55), Goodyears president and chief operating officer, has also been appointed chief executive officer of the company, effective from January 1st. He takes over from Sam Gibara (63), who will remain as chairman for an unspecified period - in this capacity, he will advise and assist Keegan and other senior managers as they assume responsibility for day-to-day management of the company. Keegan joined Goodyear from Eastman Kodak two years ago, during which time he has, says Gibara, gained an impressive understanding of the industry and is now fully prepared to take the company forward. Keegans contract included a clause whereby he would receive compensation of several million Dollars if he was not appointed to the position of CEO by October next year.
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