Michelin’s Creditworthiness Rated BBB+ By Standard & Poors
The credit rating agency Standard & Poors has given Michelin a long term corporate credit rating of BBB+ with stable outlook and a short-term rating of A-2. This rating compares favourably with that of other actors in the tyre business and of industries close to this sector of activity.
Continue ReadingAircraft Tyre Deal Between Boeing And Simex
Malaysian tyre manufacturer Simex Aircraft Tyre Company has signed an agreement to supply Boeing with radial tyres for the 777. Although Simex began aircraft tyre production in 1975, this will be the first time that the company has made radial aircraft tyres and production will begin next year. Simex has named Sumitomo Rubber Industries of Japan as its technical partner in the two-year deal.
Continue Reading“Sportec M-1” To Replace Metzeler’s “ME Z3”
With the arrival of the Sportec M-1, Metzeler has launched its latest motorcycle tyre which is planned to replace the ME Z3. The international press was invited to Biarritz, France, to take a close look at the new tyre designed to meet the niche between the race oriented Racing tyre and the touring targeted ME Z4. The M-1 is dedicated to the customer with a sportier riding style. The Sportec M-1 will be available from the beginning of October in five front wheel dimensions and six real wheel sizes. With a 0° steel-belted carcass and the multi-curvature tyre contour allied to the so-called MAW system (Metzeler Advanced Winding), or with the new compound and tread design, Metzeler has done a great deal to guarantee more enjoyment and safety for motorcyclists using the new Sportec M-1. Metzeler say that prices for the new tyre will match the market requirements, we can only guess what distribution manager Holger Schwedt means by that. Obviously Metzeler want to offer the Sportec M-1 below the price of its predecessor, the ME Z3, in order to minimise the advantage to its competitor, Bridgestone, who – if you look at market shares – came very close to the German market leader in recent years. We are no longer seeking to simply retain a stable market share, we wish to fight for more, explained Schwedt.
Continue ReadingTyreCheck 2001 In Germany
In the course of this years TyreCheck in Germany during May, 1.3 million cars were checked (previous year 200,000). 4 per cent of tyres had a tread depth below the 1.6 mm minimum, while another 15% had tread depths near to 1.6 mm. The TyreCheck, which was also carried out in other European countries, is designed to increase awareness of tyre safety. The German tyre dealers association (BRV, Bundesverband Reifenhandel und Vulkaniseur-Handwerk) described the participation of its members as disappointing, but the car testing organisations (TUV, Dekra, GTU) demonstrated a very high level of involvement.
Continue ReadingWinter Tyres Business – A Hope And A Worry
Last years miserable winter tyre business has had a marked effect on many market players. Only a small number of dealers in very few regions of Germany could report a normal winter tyre business. In most parts of the country the snow came too late. If it does not snow until the beginning of November it becomes increasingly harder day by day to convince the end users to fit their cars with winter tyres. November is absolutely the most important month for retailer‘s winter tyre business. In late summer and early autumn of 2000 the tyre manufacturers were very happy about their sales to the dealers, which reached record levels. But of course the managers of the tyre industry are not so naive as to regard the lack of sales to the end users later on in the season as a problem only for the dealerships. This problem comes back to the manufacturers in two ways. First of all dealers experienced a lack of financial liquidity and there were problems in paying invoices. Secondly, having tyres in stock affects the willingness to order for next year – in this case 2001 – at the same level as before. Because merely listing the troubles would be pointless and unproductive, we tried another approach: we spoke to a lot of market players in order to form an overview of opinion and compared this with some hard figures.
Continue ReadingPAX For Audi?
The new Cadillac Roadster in North America will be introduced with PAX as original equipment. Audi is also interested in using PAX, Michelin boss Edouard Michelin revealed in an interview with Modern Tire Dealer. The joint venture with Goodyear has proved to be very efficient in the development of PAX.
Continue Reading890 To Go At Pacific Dunlop
As part of its major restructuring, Pacific Dunlop is to close two Victoria-based tyre plants in Australia. The move is aimed at ensuring the future of South Pacific Tyres and will result in 890 job losses – 820 at the factories and 70 in management and back-office positions. Olympic Tyres Ltd has confirmed that it has secured continuous supply of Olympic Tyres, supplied by South Pacific Tyres. Olympic distribute SPTs agricultural, off road and construction tyres throughout the UK and much of Europe.
Continue ReadingNew High Performance Winter Tyre From Marangoni
Marangoni Tyre has extended its Meteo ESC Winter tyre range with the introduction of four new sizes. These are a 14-inch, T-rated size, two 16-inch, H-rated tyres and a high performance tyre, size 225/45 R17 V, aimed at high-level saloon cars. This is the first V-rated Winter tyre in the Meteo ESC range, which now consists of 24 sizes.
Continue ReadingOngoing Pressure On Goodyear
According to the monthly investors update, the group is still under pressure. In the US the replacement business was quite good, not so in the OE business. In Europe, the group is suffering because of the warm weather, which is having a negative effect on sales of winter tyres, and in Asia, the company has been forced to lower prices due to the fact that cheap imports from China are putting pressure on prices. In a cost cutting move, Goodyear is offering an early retirement package for around 700 white collar workers, half of them working in the Akron HQ.
Continue ReadingFast-Fit Operation For Asda Supermarkets?
In the UK, the Asda supermarket chain is said to be looking at the possibility of opening car fast-fit businesses. Asda is owned by Wal-Mart, which operates tyre and lube centres at its stores in the USA. An Asda spokesperson said that the company had no plans to launch tyre and lube in the UK at present, although the possibility is being evaluated.
Continue ReadingKerkorian Sells 16 Million DaimlerChrysler Shares
Kirk Kerkorian, the third-biggest shareholder in DaimlerChrysler, has reportedly halved his stake in the company by selling 16 million shares recently. It is said that he will continue with the $8 bn lawsuit he brought against the company, alleging that it misled shareholders when Daimler and Chrysler merged.
Continue ReadingRacing fever in Germany now – Michelin Goes Formula One
Members of the German buying association of free tyre dealers EFR met for their annual meeting at the former Expo exhibition centre. Doors were closed when they reviewed the past year and analysed the weak points, as well as when they tried to set the agenda for the year 2001. No doubt EFR is known on the market as a Michelin buying association, which, regarded from the opposite side, is as wrong as if FRI were to be called a Goodyear buying association. But this is the wrong place to discuss both sides differences. In fact, EFR is representing a group with a very friendly relationship towards Michelin and therefore selling their products as a priority. And of course Michelin itself is doing everything to satisfy the EFR dealers demands, as with more than 300 specialised tyre dealers they form a solid distribution basis for their products. After being in low gear for several years, Michelin has had a brilliant start to the new millennium, while profiting from the seeds they have been sowing for the past two or three years. However, until recently, with their first brand the French have steadily been losing market shares all over Europe and most of all in Germany – although no loss of quantity and admittedly from a high ranking – now they are ready for the battle with the competition in their home market Europe, more than ever. As Michelin wants to win the race, Patrice Kéfalas could not miss a favourable opportunity: Michelin goes Formula One was the message that he announced in front of the EFR tyre dealers. Hence, the race is on at all levels. With Michelin tyres Patrice Kéfalas does not only want to win for merely for the sake of being the winner, he also wants to realise an image profit, which should end up in either greater quantities or better selling prices too between industry and trade or trade and consumer, or even both.
Continue ReadingRestructuring For Pacific Dunlop
Australian company Pacific Dunlop has revealed restructuring plans, which involve splitting the group in two. The Ansell health care business (turnover $Aus 1.3 bn) will be floated as a separate company. The second company will include the distribution of consumer products (Pacific Brands) and automotive products (Pacific Automotive and South Pacific Tyres). Turnover of these units totalled $Aus 2.7 bn.
Continue ReadingNew UK Truck Servicing Network For Continental
Continental Tyre Group is to set up a new UK truck network, comprising independent businesses with exclusive territories, managed by Continental. This will obviously affect the commercial division of Contis subsidiary National Tyre Services. Some will be sold, while some will be taken over by existing staff – a number of these are expected to join the new truck network, which will be called ContiNetwork.
Continue ReadingFirst Quarter Outlook Announced By Hayes Lemmerz Hayes
Lemmerz International, Inc. – the worlds leading global supplier of automotive and commercial highway wheels – announced that first quarter 2001 diluted earnings per share is projected to be a loss of $(.27) compared to earnings per share of $.51 in first quarter 2000, and compared to a loss of $(.58) per share in fourth quarter 2000. Sales are lower than the record levels experienced in first quarter 2000, but have rebounded significantly from the levels experienced in the fourth quarter of 2000, when North American car producers reduced volumes to adjust light vehicle inventories. Ron Cucuz, Chairman and CEO: Light vehicle production in North America has stabilised compared to the fourth quarter and volumes have strengthened slowly through the first three months of our current fiscal year. Europe and other operations outside of North America continue to perform very well.
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