Asbestos Claims Fears Hurt US Auto Stocks
The shares of US auto parts retailers fell sharply this week on the news that hundreds of companies, including the Big 3 car manufacturers, are facing lawsuits from plaintiffs who have been exposed to asbestos, which was once widely used in brake manufacturing. An argument is on-going whether those outlets that performed repairs should face greater liability than the manufacturers of the products.
Continue ReadingViking International Strengthens Senior Management Team
Viking International, one of the UKs leading tyre, exhaust and automotive wholesale companys, has appointed Mike Curry as National Sales Manager. As part of the senior management team, Mike will be responsible for eleven business development managers that cover the country from nine strategically positioned regional warehouses. He will also play a leading role in key national account expansion.Mike Curry has over twenty years sales experience working with blue-chip companies in a variety of senior positions. His most recent appointment was as sales and marketing director with Tenneco Automotive who manufacture Walker exhaust systems and Monroe shock absorbers.
Continue ReadingNew Bridgestone Production System
Bridgestone has unveiled a new tyre production system which automates the entire manufacturing process from initial materials processing to final inspection of finished tyres. Called Bridgestone Innovative and Rational Development (BIRD), the system consists of three elements. First is Bridgestones Automated Tyre Manufacturing Synchronised System (ATMSS) technology covering materials processing to vulcanisation. Second is Automated Inspection Modular System (AIMS) for automatic inspection of finished tyres and the third element is the Flow Oriented Approach (FOA) implementation of autonomous information processing for managing the system. Among the advantages claimed for BIRD include flexibility, quality improvements, smaller plants (a unit can produce up to 350,000 car tyres a year), occupying one-third of the space of a conventional plant, smaller lot production and reduced environmental impact.
Continue ReadingCord Deal At Michelin
The Hyosung Corp. has announced that it has won a $350 million order from Michelin to supply tyre cords and has also agreed to acquire a U.S. cord plant from Michelin for an unspecified amount. Hyosung, which is the worlds largest polyester tyre cord maker, said its U.S. unit, Hyosung America Inc, would acquire Michelins tyre cord plant in Virginia. The acquisition would enable Hyosung to secure a production point to enter the North American market.The South Korean company said in the statement it expected to increase its North American market share of tyre cords to 20 percent from the current 13 percent, while global market share would rise to 24 percent from 20 percent.
Continue ReadingTyre Dumps Hit During Fire Dispute
Hundreds of homeowners were warned to remain indoors and keep their doors and windows shut after clouds of black smoke from a blaze at a scrap tyre depot in Levenshulme, Manchester swept across the area.Thirty military personnel and five Green Goddess tenders were sent to tackle the blaze at the tyre depot in, Levenshulme, late last night, and they were still dealing with the incident more than twelve hours later.Loudspeaker warnings for people in Levenshulme and Gorton to remain inside and keep doors and windows closed, to keep out fumes from the burning rubber, were relayed by the Greater Manchester Police helicopter. And motorists were being urged to avoid the area completely. A further four Green Goddesses were despatched to another blaze in nearby Stockport to tackle a tyre dump fire.
Continue ReadingKwik-Fit Relocates HQ
Kwik-Fit’s HQ is to be relocated but will remain in Scotland. The head office will move from Corstorphine Road to Broxburn, West Lothian. 50 of the 60 workers based at Corstorphine Road will be transferred to Broxburn, formerly the head office of its UK subsidiary, between now and the end of March.A Kwik-Fit spokesman said there would be around 14 redundancies, mainly among Roseburn-based staff. The spokesman added: “Tim Parkers (The CEO) immediate goals are to increase profitability, simplify the management structure and keep staff informed about the progress he is making.”Parker, is now looking for two executive directors to join Kwik-Fits management - a finance director to replace John Houston and another senior manager.
Continue ReadingFord And Firestone To Co-Sponsor Race Series
Following the rift between Ford and Firestone, caused by the tyre recall, the two companies are to co-sponsor the CART racing series. Banners at the event will read Bridgestone presents the Champ Car World Series powered by Ford. This move, which is still in the early stages, has created speculation that it could be the first step in a rapprochement between the two companies.
Continue ReadingTyre Show For London Next Autumn
Hot on the heels of the demise of InterTyre comes the news that a new UK exhibition for the tyre and related trades has been organised for October at Earls Court in London. To be called Tyre World, the show will be run by London-based conference and events organisers Idex Media. The arrangements were confirmed only yesterday and, as such, few details are available at this time.
Continue ReadingManagement Changes At Goodyear
Goodyear has appointed Jonathan Rich (47) as president of the companys North American Tire unit. He succeeds John Polhemus (58), who is to retire after a career with Goodyear spanning 33 years. Rich was elected President of Goodyear Chemical last year, having joined the company in 2000. His successor as President is Joseph Copeland (41), director of finance for Goodyears Engineered Products and Chemical divisions.
Continue ReadingRefunding At SmarTire
SmarTire Systems Inc. has strengthened its financial position with the completion of three private placements totalling $6.4 million. Since September 2002, $1.184 million has been released to the Company. A total of $5.2 million is subject to registration. The financings include a $1.0 million placement of common shares and warrants with European investors, $400,000 in convertible debentures and a $5.0 million facility for the placement of common shares. Proceeds from these private placements will fund ongoing operations, purchase inventory to satisfy current and projected product demand and retire debt.With implementation of the TREAD Act less than a year away, we have been extremely busy formalizing corporate relationships, completing supply agreements and quoting for new business,” says Robert Rudman, President and Chief Executive Officer of SmarTire. “With our improved financial position we are better able to address the anticipated demand for tire pressure monitoring already evident in North America and Europe and beginning to emerge in the Asian markets.
Continue ReadingEU Raids Carbon Black Makers (Update)
European anti-trust inspectors have launched raids on six chemicals companies suspected of fixing prices in carbon black, a product used in the tyre industry. The surprise inspections were carried out on Tuesday at premises of the six firms in France, Germany, Italy and Spain, the European Commission said. The European Unions executive arm said it was looking for evidence of a cartel agreement and related illegal practices concerning in particular price-fixing for carbon black. Degussa has admitted it is being investigated, in addition to Phelps Dodge and Cabot Corp whose shares fell at the news. Entirely in line with our corporate compliance rules, we are fully cooperating with the investigation, Degussa said in a statement. We are confident that the investigation will prove soon that price fixing within the carbon black industry did not happen, it added.
Continue ReadingShares Drop On Carbon Black Probe
Share values at Cabot Corp and Phelps Dodge fell dramatically after the worlds largest suppliers of carbon black said regulators were investigating whether they conspired to fix the price of the substance used to make tyres. ”Weve been approached by the European Union and Department of Justice and we are co-operating fully, Bruce Richardson of Phelps Dodge said. Artificially high prices for carbon black would increase costs for tyre manufacturers which use it to strengthen their products. Cabots shares fell $1.50, or 5.8 percent, to $24.17 in New York Stock Exchange composite trading. Phelps Dodge dropped $2.18, or 7.5 percent, to $26.72.
Continue ReadingConfirmation Of Intertyre Cancellation
The SMMT (Society of Motor Manufacturers and Traders) has confirmed that auto1 and InterTyre have been cancelled in a press release which blames the declining industry profits and reduced marketing budgets. The postponement decision has been taken rather than producing a show which would not fully represent the scale of the industry.
Continue ReadingGoodyear Makes InformationWeek 500
In the USA, Goodyear has been ranked number 118 in the InformationWeek top 500 list. This list ranks US companies with turnovers of more than $1 billion according to patterns of technical, operational and organisational innovation. The listing pleased Eric Berg, Goodyear vice president for e-commerce and chief information officer, who pointed out that the list is compiled on the basis of an organisations innovative use of information technology, rather than merely who spends the most on IT.
Continue ReadingBridgestone To Raise Prices In US
Bridgestone/Firestone North America is raising prices from 1st January because of increased raw material costs. The increases - up to 5 per cent - will apply to car and light truck tyres for the Bridgestone, Firestone and Dayton brands, as well as associate and private brands. Bridgestone, Firestone and Dayton heavy-duty and medium-duty truck tyres will rise by 3-4 per cent. The move follows similar increases in the US by Goodyear, Michelin and Cooper.
Continue Reading