Government Extends Scrappage Scheme to Include Vans
The UK government is to extend the successful “bangers for cash” scrappage scheme until February 2010 with £100 million in extra funding. Alongside the increased funding the government will work with manufacturers to extend the benefits to van owners with vehicles over 8 years old rather than the current 10 year requirement. Car owners will also get a boost, with the age qualification changed by 6 months to extend the benefits to cars registered on or before 29 Feb 2000 (V registration). The scheme will come to an end in February 2010 or when the funding runs out, which ever is sooner. So far 227,750 orders have been placed through the scheme. The increased funding enables the scheme to fund a further 100,000 vehicles, bringing total budget to £400 million and covering up to 400,000 vehicles in total. The extension continues as a government and manufacturer partnership, with matched funding providing the £2,000 discount for each scrappage order. Announcing the news Business Secretary Lord Mandelson said: “The sector has been strongly affected by the recession, but the scrappage scheme has delivered a boost to manufacturers and the supply chain. We have listened to the concerns of manufacturers and are increasing the funding of the scheme to £400 million.”
Continue ReadingTechnical Tire Consulting: Performance has it Roots in the Process
TTC stands for Technical Tire Consulting, a team of specialists with many years’ experience in the field of tyre manufacturing and familiarity with the latest technologies. During their time in the business the consultants have been responsible for building world class manufacturing facilities, such as those producing drop centre tyres, and have knowledge of all aspects of the business at their fingertips.
Continue ReadingLayoffs Announced at Closing MNA Factory
In preparation for the closure of its Opelika, Alabama factory at the end of October, Michelin North America's BFGoodrich Tire Manufacturing has announced the layoffs of approximately 350 production employees, effective October 2. According to Lynn Mann, MNA director of external communications, the layoffs are part of the company’s “rampdown activities”.
Continue ReadingToyo to Cease Supplying US Market from China
Following the Obama administration’s decision on Chinese tyre imports, Toyo Tire & Rubber has announced it will soon stop producing passenger car and light commercial vehicle tyres for the US market in China. "Most of those tyres will soon be manufactured at our plants in Japan," the company said in a statement. "Our number one priority is customer satisfaction, and we are making every effort to minimise disruption in supplies to our dealers by expediting these production changes."
Continue ReadingBrazil Ends Retread Ban Discrimination
Brazil has informed the World Trade Organization it has now come into compliance regarding its used tyre trade dispute with the European Union. The WTO ruled that Brazil’s ban on retreads from the EU discriminatory as it permitted them to be imported from other South American countries. To rectify the situation, Brazil has outlawed the importation of such tyres, regardless of their origin.
Continue ReadingBridgestone Helps Motorist Fill-up Free in National Tyres Competition
National Tyre and Autocare (NTA), in association with Bridgestone Tyres, recently awarded Margaret Beattie of New Elgin with free fuel for a year after she won first prize in a national competition. Margaret entered the competition at her local NTA depot, in New Elgin. Margaret’s name was chosen at random from the hundreds of entries received. Andy Dingley, advertising and promotion manager for Bridgestone, commented: “Motorists are being put under pressure as the costs of running a car increase with fuel duty rising by 2p next month, along with the environmental concerns of motoring and the sheer volume of traffic on the nation’s roads, so it is no surprise that driving has lost some of its joy. We wanted to give something back to drivers at a much needed time.”
Continue ReadingAnalysts Predict Michelin to Benefit Most from Market Recovery
Financial analysts are predicting that Michelin will benefit most from a margin recovery effect set to hit premium tyre manufacturers in 2010. According to Deutsche Bank, despite a significant negative volume effect, the leading tyre companies have been “very resilient” in 2009. This means they have benefitted form pricing discipline, raw material tailwinds (in the second half) and a positive OE/replacement mix. The analysts believe that next year’s volumes should rebound strongly from their low current level and, coupled with a leftover raw material tailwind and with restructuring paybacks, margins should rebound strongly. “Michelin should benefit the most followed by Pirelli. While Continental should benefit the least [proportionately] since tyres represent only 30 per cent of the group's revenues,” the investor’s note explained.
Continue ReadingHankook Confirms it is Considering 6th Production Facility
When Hankook executives announced details of their plans to expand production at the company’s Dunaujvaros, Hungary factory earlier in September, the Financial Times reported that either an Indian or Malaysian plant are next on the list. In answer to Tyres & Accessories/tyrepress.com questions, Calvin Pak, Hankook team manager corporate communications, explained that these countries are indeed being considered, but that sites in Mexico and Brazil are also being looked into. Acquisitions of existing plants or companies are also said to be an option. However, no final decisions have yet been made.
Continue ReadingFrench Government to Phase Out Scrappage Incentives
After pioneering the so-called “cash for clunkers” scrappage incentive model in 2008, which was then mirrored in all the major European markets, the French government has announced that it is phasing out its 1000 euros for a 10 year-old car stimulus package. According to financial analysts, this measure had a net positive impact on demand of approximately 200,000 units, or 10 per cent of the market against a gross market impact of 400 units. The developments in the French market follow the rather more abrupt end of a similar scheme in the German market, where demand for cars purchased under the scheme exceeded supply on 2 September. According to a Deutsche bank report published at the time, the scheme was responsible for 9000 unit sales a day since its introduction. To avoid a free fall of the market next year, Germany’s car market for example is expected to be 25 per cent down in 2010, the French government has decided to reduce its scheme progressively. Next January the incentive will drop to 700 euros before dropping to 500 euros next July and hitting zero in January 2011. As a result, Deutsche Bank analysts are predicting “a limited decline of French registrations in 2010 of around 1.9 million units, -5 per cent.”
Continue ReadingNexen to Invest 1 Trillion Won in New South Korea Factory
Nexen Tire is planning to invest 1 trillion won (£526 million; 572 million euros; $829 million) in a new factory in South Korea. The move is seen as a way of ramping up production in anticipation of a 6 per cent annual growth of global tyre demand. The new plant, which will be located in Gyeongnam Province, southeast of Seoul, would be the world's largest to produce tyres for passenger vehicles and light trucks, according to the company. The investment, which is scheduled to be made by 2017, will double the company’s existing annual output from its other China and South Korea plants to 60 million units and place it among the world's top 10 tyre makers, the company said in a statement. Nexen shares rose 1.35 per cent to 6,020 won by 0248 GMT 28 September 2009 following the news.
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BMTR Celebrates 90 Years, But is it the Oldest Tyre Dealer in the UK?
Although recent years have been challenging for the UK automotive industry, Birmingham remains a city steeped in automotive heritage. And, in the midst of some high profile casualties in recent years, BMTR says it is going from strength to strength and this year celebrates its 90th anniversary. The company clearly has some history, but is it the oldest in Britain? In order to find out, and in celebration of BMTR’s 90th anniversary, Pirelli Tyres UK exclusively through Tyres & Accessories is offering a case (that’s 12 bottles) of fine wine to any tyre dealer or wholesaler that can prove they are the oldest in the business.
Continue ReadingHamilton Meets Club Rainbow in Singapore, Hosted by Bridgestone
Bridgestone has been showing that its involvement in Formula One stretches beyond the supply of rubber on race days; the manufacturer hosted an event in which eight of the disadvantaged children of Singapore’s Club Rainbow met up with Vodafone McLaren Mercedes driver, Lewis Hamilton. Club Rainbow (Singapore) is a registered charity committed to helping children and youths suffering from a range of chronic and life-threatening illnesses. Established in 1992, the charity currently supports more than 470 beneficiaries and their families.
Continue ReadingYH America Expands Power Steering Hose Business
Yokohama Rubber has announced the expansion of the power steering business operated by it US affiliate YH America, Inc. In making the announcement, Yokohama states “in the changing US automotive market environment, no company can survive the power steering hose market without high product quality and cost competitiveness.” The company notes that, recognising this situation as an opportunity for improving its position in the market, YH America increased its production capacity in May by leasing a plant in South Carolina. This move should propel YH America into the top position on the US power steering hose market.
Continue ReadingChina Welcomes ITC Ruling Forcing OTR Anti-Dumping Rethink
The Chinese government has welcomed a US Court of International Trade ruling that the US Department of Commerce imposition of anti-dumping and countervailing duties on Hebei Starbright Tyre Co., Ltd might result in it paying twice. According to the Xinhua news agency, the US court ruled that the Department of Commerce should either scrap the countervailing duty or amend its methodologies and procedures of levying anti-dumping measures and countervailing duty on merchandise from China within 90 days. The news refers to the fact that, on 31 July 2007 The US Department of Commerce decided that it would launch anti-dumping and countervailing probes simultaneously into China-made off-road tyres. On 4 September 2008 it introduced a 19.15 per cent anti-dumping and a countervailing duty ranging from 2.45 per cent to 14 per cent on the Chinese produced tyres.
Continue ReadingTransense Technologies to Supply Goodyear With Inspection Tools
Transense has entered into a supply agreement with Goodyear Dunlop Tyres UK for its tyre tread depth and pressure field inspection kit. According to the company, this represents “a significant order for Translogik”, the company's sales subsdiary. Goodyear will now deploy these kits as part of its new fleet management system. The system will provide its customer fleets with real-time mobile data capture and transmission capabilities. The announcement follows the success of the recent pilot programme, a full UK launch is scheduled to commence later this year, followed by a Europe wide deployment throughout 2010.
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