Cooperation Between Continental And Yokohama Intensifies
Continental and Japanese tyre manufacturer Yokohama, who already operate a plant together in the USA, producing truck tyres, want to intensify this cooperation. They want to create a 50-50 joint venture in Japan by the end of the year, merging their Japanese activities and focussing on their Japanese OE customers. Yokohama will also help Continental increase its replacement market business. In addition, the two companies want to work more closely together in production in the NAFTA area and are looking at potential synergies, in areas such as purchasing.
Continue ReadingTruck Grand-Prix With Continental
Truck Racing at Nürburgring is traditionally a highlight of the racing season in Race- and Super Race-series for big trucks. Once again, 200,000 visitors came to see the competitions combined with a big entertainment programme. The smell of diesel and rubber, lots of sausages and beer, country music and a little bit of Western romance – these are the basic ingredients of this three-day-long fun and sports event. The important tyre manufacturers like Goodyear, Fulda and Pirelli were there too and used this occasion to communicate with their customers in an atmosphere much more relaxed than normal. The only tyre supplier for Truck Racing, Continental, had invited almost 2,000 guests for the races. For twelve years the German tyre manufacturer has supported European truck sport. And the involvement means more than just supplying the tyres. Technical support on the race tracks, mounting and professional advice are also part of the programme of sponsoring different teams. Since 1991 all teams of the Super Race-class have driven exclusively on Continental. With up to three trucks weighing 30 tons, the Continental service team accompanies the competitions all over Europe. Two service vehicles have space for 200 truck tyres each – enough to satisfy the needs of all the teams for a complete race weekend. Besides the enthusiasm for motor-sports Continental’s involvement has other practical reasons. Firstly, all target groups from the original equipment sector to the end user can be reached. And secondly, the racing itself provides concrete proof of the high performance and resistance of Continental’s truck tyres.
Continue ReadingPrice Increases In German Market For Continental Tyres
Continental has announced that the prices of its passenger, van and 4x4 tyres sold in Germany will go up by four per cent from 1st August. Higher costs of raw materials are being blamed for the increase, particularly the price of synthetic rubber and carbon black. The price hike does not apply to markets outside Germany.
Continue ReadingRun-flat Tyres Will Replace Conventional Tyres
For so-called run-flat tyres (meaning tyres that can be driven even at zero air pressure) in Europe and North America huge sales increases are on the horizon. Run-flats will replace conventional tyres now in use. This can happen only step by step because there is a lack of production facilities for a number of years. Another effect: if the new tyres become standard original equipment, the market for tyres will reduce by twenty percent, because a car fitted with run-flat tyres does not need a spare wheel. Is the development of such products an example of the tyre business shooting itself in the foot? Of course not because it is never possible to stop technical developments like these. And it should be noted that run-flat tyres are more sophisticated than conventional tyres, which compensates for the lack of every fifth tyre in oe. Because tyre pressure warning systems will, in the future, become mandatory on new cars, they need suitable tyres. Run-flat tyres without tyre pressure systems are not practical; the driver might not realise that he is driving at zero pressure at high speed. The reverse situation is possible – indeed already a reality in some models – as the car is fitted with a tyre pressure monitoring system but on conventional tyres. Nowadays, run-flat tyres have moved from the arena of the laboratory and testing and are on the way to becoming a growing part of the market. As with other new technologies, if a new standard replaces an old one, the race is on among new systems (for example which tyre pressure monitoring system is the best), materials (for example which reinforcements should be used for the carcasses) and other developments for the transition period (tyre repair sets).
Continue ReadingInternationalisation of SupplyOn
SupplyOn, an internet market platform for the automotive supplier industry, located near Munich, wants to enhance its international presence. Recently the company opened a bureau in Paris. Due to the great interest in a business-specific E-commerce platform, the company intends to establish a presence in the USA by the end of the year. To date, 25 international automotive suppliers are registered with SupplyOn, whose offer contains integrated solutions for buying, distribution, logistics and development.
Continue Reading3Q Earnings Revision For Goodyear
Goodyear has revised its earnings outlook for the third quarter of 2001, downwards, Net income per share is be similar to the second quarters 5 cents per diluted share. This compares to 11 cents per share for the third quarter 2000. Goodyear says that an already slowing demand had weakened further in the aftermath of the terrorist attacks on the USA.
Continue Reading“Eufori@” – Two Premieres For Pirelli
Consumer demand for run-flat tyres is at an all-time high. In the U.S., for example, a recent study found that nearly seven out of eight consumers place run-flat tyres at the top of their list of features desired on new automobiles. Therefore it is expected that the demand for run-flats will increase within the next few years. This is one of the reasons why Pirelli has developed such a tyre on its own, regardless of the fact that the company is working together with Goodyear and Sumitomo on Michelins PAX system. But the launch of the new tyre – called Eufori@ – was not the only premiere for Pirelli: this run-flat is also the first tyre manufactured using the Italians MIRS technology. In size 205/45 R17, the Eufori@ is original equipment on the new Mini Cooper S, shown at the Tokyo Motorshow at the same time. The name of the tyre, which will of course also be available for the replacement market and in the additional size 225/45 R17, was chosen from more than 20,000 suggestions made during an internet campaign at the end of last year. We expect that in three years run-flats will account for about 10 % of the high performance tyre market, explains Francesco Gori, Senior Vice President Market Development Unit at Pirelli. Other car manufacturers who are interested to use Eufori@ as original equipment are BMW, DaimlerChrysler, Ford and VW/Audi, adds Maurizio Boiocchi, responsible for research and development at Pirelli Reifenwerke. From remarks such as these, one gets the impression that run-flats will become standard equipment on cars much faster than did other features, such as ABS.
Continue ReadingAppeal Puts Goodyear Back In Court
China Tire Holdings Ltd and Orion Tire Corps Lawsuit against Goodyear has been sent back to the federal court by the 9th Circuit Court of Appeals. This revives a long-standing battle over Chinas grant of a joint venture plant to Goodyear. The claimants say that Goodyear unlawfully persuaded a state-owned factory to abandon a contract with China Tire. China Tire alleges that Goodyear gave gifts, including jewellery, scholarships and travel to Chinese officials. The case though may face early dismissal if China Tire do not present adequate new pleadings.
Continue ReadingThe “30 Metre Car” From Continental
One of the Holy Grails of the auto industry, and the tyre industry in particular, has been a car which would stop in 30 metres from a speed of 100kph. Continental AG has recently demonstrated a highly upgraded version of a compact-sized car that will achieve that goal. The development of a car able to achieve this goal, the 30-metre car, has been set as a target by Continental, and others for some years, but Continental is the first claiming to have achieved the target. Continental’s team dedicated to the project was entitled Reduced Stopping Distance project. The current best stopping distance from 100kph from a compact car is 38.5 metres; so attaining a reduction of 8.5 metres is a quite a considerable achievement for the Continental team. The project brought together development researchers from Continental’s tyre business, with experts from Continental Teves, the brake and electronic systems operation; the latter now part of Continental Automotive Systems Group. This expertise, combined with existing knowledge of air suspension, mounting and chassis systems, were all brought together within the ContiTech Group to place the group at the vanguard of the chassis development sector. According to Dr. Stephan Kessel, We want to be the forerunner in total chassis management so we’ve also got to have the appropriate damping and steering skills. This suggests that further acquisitions may be under consideration in the near future.
Continue ReadingTemporary Pay Cut For Bridgestone Board
Following the profits warning issued by Bridgestone, the companys directors have taken a 30 per cent pay cut for four months and there will be no bonuses for senior executives. President Yoichiro Kaizaki said that there are no plans to reduce wages of workers in the USA, despite the fact that Firestone is expected to record a loss this year of US$ 500 million. Looking at the prospects for the Bridgestone group, Mr. Kaizaki predicted a net profit for 2001 of 48 billion Yen.
Continue ReadingPolish Kwik-Fit Centres Open
Kwik-Fits Polish operations are up and running; late last year a centre opened at Bydgoszcz. Since then two more have been opened in Warsaw, one in Poznan and one in Gdansk. Two more (Warsaw and Gdynia) are due to open soon.
Continue ReadingRestructuring Plan For Chrysler Next Month May Close Factories
Next month, DaimlerChrysler is expected to reveal a restructuring plan for its Chrysler subsidiary. Industry commentators are speculating that the plan could involve job losses of up to 20,000, both blue and white collar jobs, and closure of as many as six factories over an unspecified period of time.
Continue ReadingECE-Regulations Still Under Discussion
In Germany, there exists a handful of proving laboratories examining tyres according to the ECE regulations, and most clients are retreaders. In February one of these laboratories, the Prüflabor Nord (PN, Bad Bramstedt), held an Open Day. Day of Open Doors. Proving authority for the retreading facilities in Germany is the Kraftfahrt-Bundesamt (KBA), which, up till now has evaluated 35 truck tyre and eight car tyre retreading facilities in conformity with ECE-R109 and ECE-R108. The proving process is not obligatory but on a voluntary basis. It might be another two years before the regulations become mandatory. The discussion of retreading experts with responsible persons from KBA and PN has shown that a lot of questions, which have been answered up till now through the actual ECE wording show it to be inadequate or bad. The planned ECE regulations need modifications very urgently, otherwise the whole retreading business is threatened. The rules are so vague that they constitute an open invitation to the black sheep of the retreading business to bring the whole industry into disrepute.
Continue ReadingAdvertising To Be Boosted By Michelin USA And Goodyear
In order to expand its approach to marketing Michelin North America is reviewing its US advertising policy and will be evaluating new agencies after a 17 year relationship with New York agency DBB. At the same time Goodyear are set to increase world-wide advertising spend by 30 per cent. The annual advertising spend for Goodyear is estimated to be $60m.
Continue ReadingBorbet Group Acquires Casting Facilities From Michelin-Kronprinz
Effective May 1, 2001, the Borbet group will acquire the casting facilities for light alloy wheels from Michelin-Kronprinz in Solingen (Germany). The production of steel wheels and fabricated aluminium wheels is still owned by the Michelin group. Customers for cast aluminium wheels made by Michelin-Kronprinz – annual capacity around 1.25 million – are solely in the oe market, mainly BMW and Volkswagen, plus Audi, the PSA group and Renault.
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