More Production Cuts From Goodyear
In the US, Goodyear says that it will reduce tyre production this month and next, due to weak demand for new cars and trucks. Cuts will be made across the board with no layoffs or shutdowns planned. The reduction follows a second quarter cut in production of six million tyres, despite increased demand as a result of the Firestone recall. Shares in Goodyear fell 20 cents at the news.
Continue ReadingNo Negotiations With Continental
Trelleborg has an annual growth target of 15-20 percent. Part of this is attained through an ongoing acquisition policy. This has given rise to speculation on a possible Continental take-over. Trelleborg has felt obliged to confirm that there are currently no negotiations between the companies.
Continue ReadingCo-operation Between Michelin and Bosch
Robert Bosch GmbH (Stuttgart) and Michelin (Clermont-Ferrand) have announced a long-term strategical partnership in the development and distribution of integrated driving dynamic management systems. The co-operation covers the fields of research and development as well as the introduction of product to the market. Both companies have identified working areas for the basis of common developments and synergies.
Continue ReadingThird Quarter Sales And Earnings Down For Bandag
Bandag Inc. has announced falls in sales and net earnings for the third quarter, compared to the same period last year. Turnover fell 3 per cent to $261.7 million and earnings were down 18 per cent at $14.6 million. Chairman and CEO Martin Carver blamed the economic downturn in truck tyre markets worldwide for declining volumes. Despite this, Bandag maintained its margins, with the exception of the ultra-competitive European market. Carver does not foresee recovery in the truck tyre business any earlier than the second half of next year.
Continue ReadingGlobal E-Commerce Director For Goodyear
Goodyear has appointed Nathaniel E. Leonard as global director of e-commerce. His previous post was as president of Weldersmall.com. In his new position, Leonard will lead Goodyears efforts to develop and implement e-commerce strategies, both global and individually-tailored for Goodyears strategic business units.
Continue ReadingThe French Connection: Arc-en-Ciel
The French tyre trading network Arc-en-Ciel claims to be the largest European chain of independent tyre dealers. In 1986, there were only twelve members, but this has grown to a network of 850 outlets in Europe, 386 of which are in France. Every year, 20 new members join the group, it is claimed. In France alone, Arc-en-Ciel distributed around 2.9 million tyres in 1999, with the group holding 11% of the car/van tyre market, 9% of HGV and 18% of the agricultural tyre market. The Arc-en-Ciel branding is memorable – the name means rainbow in French – and this is carried over to a range of own brand products, which, of course, includes tyres that go under the name Eurotyre. As Arc-en-Ciel spreads across Europe, its strength increases. In addition to the French network, the group has a presence in six European countries, including 71 depots in the Benelux and 168 in Spain. Further expansion is envisioned in Portugal and in eastern Europe. Besides its fast-fit operation, Arc-en-Ciel has introduced a 24-hour replacement tyre service for hauliers in 14 European states.
Continue ReadingRetreading Movement in USA
Following Michelins acquisition of several retreaders in the USA last year forced Bandag, the largest competitor in that market, to take over some erstwhile franchises, we are now hearing of successes for Goodyears retreading system, Treadco. The retreading business of Oliver (Oliver is part of the Cooper-Group) seems to be suffering significantly under the growing pressure.
Continue ReadingUS Consumer Watchdog Group Beleaguers Bridgestone/Firestone
The Consumer Group Public Citizens is urging Bridgestone-Firestone/USA to recall another 7 million Wilderness tyres and is citing an alleged 1,000 consumer reports. The management of the tyre manufacturer insists that all Firestone tyres are safe and that a recall is not necessary. Only a few weeks ago the same group strongly urged Goodyear to recall 13 million Goodyear tyres which are, according to the files of the consumer group, not safe. Goodyear also refused to do so, claiming that the products are perfectly okay.
Continue ReadingNew Motorcycle Tyre From Michelin
Michelin has launched the new Pilot Sport HPX (Horse Power Xtreme) motorcycle tyre to cope with the demands of todays more powerful bikes. The tread pattern is the same as the Pilot Sport, but the casing has been redesigned to cope with the higher speeds and weights of machines such as the Suzuki GSX-R 1300 Hayabusa and the Kawasaki ZX12-R. The new tyre which was presented for the first time during the Intermot Munich at the end of last year is available in the following sizes: 120/70 ZR 17, 190/50 ZR 17 and 200/50 ZR 17.
Continue ReadingPotenza S-03 Pole Position From Bridgestone
This is the time of the year when tyre manufacturers proudly present their latest products to the press and to dealers. Bridgestone/Firestone is no exception, launching its newest flagship tyre, the Potenza S-03 Pole Position. As the name suggests, the new tyre incorporates technology and design features based on the company’s Formula 1 experience. A high performance tyre, the Potenza S-03 Pole Position will be available in 51 sizes, speed rated W and Y, and for rims from 15 to 20. Aspect ratios range from 55 series down to a very low 30 series. The tyre has no OE homologations, neither are there plans to seek any – this follows the strategy used for the successful S-02, which the S-03 replaces. At the European launch of the tyre, Bridgestone/Firestone Europe referred to Formula 1, saying that the company welcomed the challenge from Michelin this season and pointing out that, in the first race of the new season, Bridgestone-shod cars filled the first seven places.
Continue ReadingLooking Back Over 20 Years Of NEUE REIFENZEITUNG
Over the past two decades, many things of interest have happened in the tyre industry, reported in the pages of NEUE REIFENZEITUNG and our twentieth anniversary is a good time to look back over some of these events. It is not our intention to produce an historic overview, rather to remind you of some of the significant happenings in the market which were important at the time and are still having an effect today. For example, we have seen many takeover attempts of tyre companies – both friendly and unfriendly – from which we have learned that biggest is not always best. Fifteen years ago, the Goodyear group was worth more at the Stock Exchange than today; now it is worth $4 bn, fifteen years ago, Goldsmith offered $6 bn. There have been many changes in the tyre trade too, and methods of selling tyres have changed significantly. Cooperations have been successful, but above all we have seen the development of Partnerships between the industry and the trade; today the basis for these agreements is more rational than emotional. Last but not least there are a lot of people who have made the news over the past twenty years. Among these are tyre dealer Schütze, the man who awarded himself numerous academic qualifications, and tyre dealer Hesse, who was the brightest shooting star of the early 80s, and bankrupt in 1984. On the other hand there is the tyre dealer from Weiden, Peter Unger, who had a big success story with his ATU stores; a success which is still on-going. Among the many other personalities worth mentioning is Horst W. Urban, the man whose actions ensured that Continental has remained an independent company, and Marco Tronchetti Provera; probably the most successful tyre company manager over the last decade.
Continue ReadingInvestment And New Jobs For Continental Teves Factory
Over the next five years, Continental will invest just over $51 million in its Continental Teves brake factory, located at Jicin in the Czech Republic. The investment will mean that the factory is amongst Europes largest brake system manufacturers and will mean another 670 jobs to the 900 already employed at the plant.
Continue Reading35 Million Euro Revamp At Continental
Continental announced that the overhaul of its Belgian truck tyre plant at Herstal would cost 35 million Euro and result in a loss of 560 jobs. The workforce would be reduced to 200 and redundancy packages have been agreed this week. The saturated European truck tyre market had raised questions about the profitability of Herstal, which resulted in this restructuring. Truck tyre manufacture is being shifted to Eastern Europe where overheads are lower.
Continue ReadingGrand Prix Planned For Moscow
At a press conference, Formula one boss Bernie Ecclestone confirmed that Moscow will host a Formula One Grand Prix event, probably in 2003. A new circuit is being built on a site south of the city, at an estimated cost of 112.7 m Euro. No new race will be added to the F1 calendar, so Moscow will replace an existing event. Both Italy and Germany currently stage two races, so one of these is favourite to be dropped, although a possible ban on tobacco advertising at the race in Belgium may make that event unattractive to sponsors, and thus vulnerable.
Continue ReadingFirst Ferrari President’s Prize Awarded To Bridgestone
Bridgestone became the first winner of Ferraris Presidents Prize, one of only two to be awarded to suppliers of Ferrari and Maserati, marking excellence and innovation. Ferrari President Luca di Montezemolo presented the award to Shoshi Arakawa, president and CEO of Bridgestone/Firestone Europe at a ceremony at Ferrari HQ. Also present was EC president Romano Prodi. The award was in recognition of Bridgestones role in helping Ferrari to the F1 Constructors and Drivers championships and for tyre development for Gran Turismo cars.
Continue Reading