Joan Claybrook Attacks Goodyear
Whilst working at the National Highways Transportation Safety Administration in 1979 Joan Claybrook forced Firestone to recall the S 500 Tyre. Later, as president of Washington-based Public Citizen consumer protection group she was at the forefront of pressurising Bridgestone/Firestone into their second large scale recall. Now she is turning the guns on Goodyear and is joining the growing band of lobbyists for a Goodyear recall on Load Range E tyres. As reported previously in TYRES & ACCESSORIES, there have been 15 deaths related to tread separations on Load Range E tyres and a larger number of non-fatal accidents, with some 58 incidents being reported to the NHTSA. Goodyear emphatically deny that there is any tyre fault and cite the low number of accidents in relation to 27 million tyres sold since 1991. Two years ago the company recalled 600,000 tyres and has voluntarily recalled tyres on other occasions, on one instance the fault was as a result of faulty tyre fitting procedure at Chrysler, but Goodyear handled the recall. So why not this time? Now several consumer action groups, including Public Citizen, Strategic Safety and Consumers for Auto Reliability and Safety are calling for a recall based on the existing accident statistics to prevent further incidents. They suggest that the reason for Goodyear not recalling the tyres is the tremendous cost involved in recalling an estimated 13 million tyres still in use. The cost would run to several hundred million dollars, much more than the costs Firestone have recently incurred. Again, Goodyear deny that this is the case, explaining that in the previous recalls there were clear faults with the tyres, this they say is different, the separations are, they claim, subject to many different causes and are not the responsibility of Goodyear.
Continue ReadingConcentration In Japan: SRI Raises Stake In Ohtsu To 51 Per Cent
Sumitomo Rubber Industries (SRI) has raised its 41% stake in Ohtsu to 51% and will pay about 30 million Euro. This transaction makes SRI the second biggest tyre manufacturer in Japan after Bridgestone.
Continue ReadingChina Tire Holdings Seeks $3.5 bn Damages From Goodyear
China Tire Holdings, listed on the NY Stock Exchange since 1993, has brought a law suit against Goodyear in Ohio. Amongst other things the Chinese company accuses Goodyear of violating the RICO statutes and is seeking US$ 3.5 bn in actual and punitive damages from the American rubber giant.
Continue ReadingPirelli Wants to Grow Faster than the Market
Dr. Paolo Masera, the current boss of Pirelli Reifenwerke, is convinced that Pirelli has every reason to look to the future as a profitable, independent tyre manufacturer. The revolutionary production method MIRS will not only make it possible for the Italian manufacturer to gain cost leadership, he believes, but the automated production process also promises a great improvement even on today’s quality. He stresses Pirelli’s role as the well-accepted technology partner of the motor manufacturing industry in Europe, supplier to Porsche, BMW, Rover, DaimlerChrysler, Ford, Volkswagen, Audi, Opel and others. Pirelli will not offer a multi-brand strategy because users are less interested in so-called cheap brands; they would rather buy first-class brands at a more favourable price. That does not exclude arrangements with larger customers for the supply of certain group house brands, e.g. Courier, if there is a call for it. The German organisation is facing a fundamental change. In future the emphasis will be more on key accounters, and so-called channel marketing is to be strengthened.
Continue ReadingTenneco To Close York Plant
Tenneco Automotive has announced that it is to start formal consultations with employees regarding the closure of its Monroe factory in York with the loss of 392 jobs. Tenneco blames competitive pressures, requiring the company to reduce capacity. Subject to consultations, the closing will be complete by the end of the year.
Continue ReadingContiPremiumContact – Developed to Customers’ Specifications
From the spring of 2000 the new ContiPremiumContact will gradually replace the ContiEcoContact CP as the tyre for top-class cars. With this new summer tyre Hanover expects a significant increase in the replacement and the original equipment business in tyres with speed categories of 190 km/h and above during the next few years. The new tyre was presented to the international trade press in mid-February. A study undertaken by the development/consultancy Institut für Sensorikforschung und Innovationsberatung has established that the first and foremost user requirement of a tyre is safety. By which he means aquaplaning protection, short brake distances, steering precision, roadholding and tracking stability. With three construction specifications – an innovative bionic contour emulating a cat’s paw that extends in width when the brakes are applied, an asymmetric tread pattern and a third-generation silica compound – the PremiumContact wants to fulfil these requirements. Continental is seeking a total of 37 original equipment approvals from 14 vehicle manufacturers with the PremiumContact – available in eleven different 16 and 17 inch sizes. In the replacement business the ContiPremiumContact will initially be launched in 13 sizes, a 75 p.c. market coverage, according to the manufacturer. The new tyre will be positioned at the same price level as its predecessor.
Continue ReadingWolfrace Wheels Acquired By Smith’s Wheels U.K.
Smiths Wheels U.K. have announced the acquisition of the assets, brand name and tooling of Wolfrace Wheels.
Continue ReadingWheel Report, Part 2
NEUE REIFENZEITUNG, having focused in its wheel industry report on original equipment and vehicle manufacturers in its March issue, will in April concentrate on the pricing of wheels (manufacturer to customer), on technical features, the takeover merry-go-round and on the replacement market. It came as no surprise that motor manufacturers were not too keen on our trade magazine investigating the pricing procedure – which only serves to make this exercise that much more interesting. We are still a very long way away from completing the consolidation of the industry, as can be gathered from the takeover rumours that spring up afresh every week and from the commitment of large market players to use their strong growth potential. As our last issue went to press, we reported the sale of the Norwegian manufacturer Fundo, for instance. Who will be next? In the April issue we also take a closer look at some companies operating in the replacement market, which have influenced the most important European market, i.e. Germany, in 1999, e.g. Alcar, Artec/RH Alurad, Brock/Rad Center Derkum and many others.
Continue ReadingNew Truck Racing Tyres From Continental
This year, Continental is once again supplying tyres for the European Truck Racing Championship. New tyres have been developed for the front and rear axles: HSR Speed and HDR Speed.
Continue ReadingChina Tire Holdings Claim Is Dismissed
The Eastern Division of the Ohio District Court has rejected all claims by China Tire Holdings against Goodyear.
Continue ReadingTitan Sells Assets
Titan International (Quincy, Illinois) has sold its OE business in lawn, garden and ATV wheels and tyres to the Carlisle Corporation for approximately $ 95 million.
Continue ReadingGoodyear Focused On Growth And Profitability
Goodyear Chairman, CEO and President Samir G. Gibara announced increasing growth and profitability at the companys annual shareholder meeting for 2000: Early indicators show encouraging signs that our strategy is working he said. Much of the growth will come from the more profitable replacement tyre market than from sales to auto makers.
Continue ReadingTragedy In Vredestein’s Home Town
Vredesteins home town, Enschede, was devastated by the recent explosion in a fireworks factory and subsequent fire. One Vredestein employee, his wife and one child are missing, another employee lost two children and his in-laws. 14 employees lost their houses and another 29 were damaged. Throughout the fire, the Vredestein voluntary fire brigade was active and helped the official firefighters. Obviously tyre production was affected, but was soon back to normal.
Continue ReadingMay results of German tyre retailers by BRV
The monthly census of the German tyre dealers association BRV showed the following results for May 2000: Compared to May 1999 the turnover of German tyre retailers decreased 0.9%. In the passenger car tyre segment the decrease was 5.4% and retreading business had to face a decrease of 9.6%. Only the light truck and truck tyre segment showed an increase (+ 2.7%).
Continue ReadingPrice Adjustment For Precipitated Silicas And Silicates
Degussa-Hüls AG of Frankfurt/Main (Germany) is to increase prices by 5% for precipitated Silicas and Silicates effective from June 15. The company argues that energy cost increases could no longer be offset by other measures. Silica is an important component for the reduction of rolling resistance in green tyres, as are rubber silanes and rubber blacks.
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