Online Retailers Amongst Those Supporting Tyre Labelling Rules
On April 22 the European Parliament approved – by a large majority – a number of draft measures that will see tyre performance in fuel efficiency, wet grip and noise levels explained on a standardised label attached to new tyres. The new rating system, pencilled in for implementation by late 2012, will use a scale similar to that utilised on the EU Energy Label or “fridge mark” as it has affectionately been dubbed. Now that the tyre labelling measures first published in November have been approved, it has been proposed that tyres generating particularly low levels of noise be given an extra insignia, imprinted on the outer sidewall. Another proposed change is an upping of the level of information provided in tyre advertisements – the aim is to better inform consumers and provide a stimulus for the development of safer and more environmentally friendly tyres. However, specific details of the labelling scheme have yet to be finalised, and the draft text still awaits the scrutiny of the Council of Ministers, the body representing the 27 EU member states.
Continue ReadingBridgestone Americas Extends Duravis Line-Up
The Bridgestone Duravis heavy-duty light truck commercial tyre range, originally introduced onto the North American market in 2007, is being extended through the introduction of the Duravis M895. Key features on this new all-season tyre are steel reinforced sidewalls and an on/off road capability. Like the Duravis R250, the design features of the Duravis M895 includes a reinforced steel casing for long life and retreadability, and other enhanced technologies for optimum performance. Bridgestone says the closed shoulder of the Duravis M895 contributes to improved wear and the tyre’s stone rejecter design offers enhanced casing durability. To further reinforce the overall performance of the Duravis M895, the tyre features a dual sidewall protector to help resist cuts and scrapes. Its heavy-duty construction helps protect the tyre in the most challenging applications and environments, Bridgestone notes.
Continue ReadingSnap-On’s Pinchuk Takes on Third Office
The board of directors at Snap-On Incorporated have elected current company president and CEO Nicholas T. Pinchuk to the position of chairman. Pinchuk succeeds Jack D. Michaels, who is leaving the Snap-on board of upon the expiration of his term on April 23, 2009. We are extremely pleased to have Nick as Snap-on’s chairman, president and chief executive officer, and look forward to him continuing to build on the foundation he has laid during his past seven years with the company, said W. Dudley Lehman, chairman of the company’s Corporate Governance & Nominating Committee. Nicks election as chairman is a further indication of the board’s confidence in his leadership.
Continue ReadingMichelin Sales 14.2% Down in First Quarter
To call what we have experienced in the first quarter of 2009 a bear market would be something of an understatement. And while in such ursine conditions the 14.2 per cent drop in net sales reported by Michelin is by no means any worse a performance than that experienced throughout the tyre industry, it is safe to say the French manufacturer is eagerly awaiting the next hibernation season. Group net sales for the three months to March 31 totalled 3.512 billion euros, of which the greatest chunk – 1.946 billion euros – came from the sale of passenger and light truck tyres. Truck tyres accounted for a further 1.006 billion euros, and the company’s specialty tyre business the remaining 561 million euros. All of these segments experienced a year-on-year decline in sales during the quarter; sales of truck tyres, in terms of income, declined 24.2 per cent.
Continue ReadingWheels of Middle East Tyre Market “Set to Keep Turning in 2009”
According to the organiser of Automechanika Middle East, the exhibition’s host country retains a strong tyre industry despite the global slowdown. Dubais direct trade in tyres, it says, was valued at more than AED 6.6 billion (US $1.8 billion) in 2008, an increase of 12 per cent from 2007. And organiser EPOC Messe Frankfurt GmbH believes that “even with the economic downturn catching up, wheels of the tyre market in the UAE are set to keep turning in 2009” – and thus it has high hopes for the exhibition, which opens on May 31 and runs until June 2 at the Dubai International Convention and Exhibition Centre.
Continue ReadingVredestein Banden Bought by Apollo Tyres
Apollo Tyres has agreed to buy Vredestein Banden following approval from the trustee in bankruptcy at the Almelo Court in the Netherlands which rubber stamped Apollo Tyres’ offer to acquire a 100 per cent stake in Vredestein Banden B.V. (VBBV), a 100 per cent subsidiary of Russia’s largest tyre manufacturer Amtel-Vredestein NV (AVNV). No details of price or further conditions have yet been released, however, according to an official statement on the matter, the parties will only be in a position to disclose this after “certain conditions have been met and certain approvals, including regulatory and statutory approvals are granted, wherever required.” According to a statement Apollo Tyres’ board of directors gave their approval to the management to proceed with the acquisition of Vredestein Banden today (29 April 2009). Dutch newspaper, De Twentchse Courant Tubantia quoted Vredestein Banden CEO Rob Oudshoorn as saying: “We are relieved and happy…We have had good connections with Indian market leader Apollo for 15 years.
Continue ReadingAuto Industry Slump “Left Scars” on Conti’s Performance
Upon announcing its first quarter 2009 results, Continental AG stated that the slump in worldwide vehicle production has “left scars” on the company’s performance, with consolidated sales dropping “sharply.” The company reports its Automotive Group sales decreased in tandem with market developments, while the decline in Rubber Group sales was much less severe as to aftermarket sector sales account for a larger percentage of business. Despite the recent undertaking of the largest cost reduction programme in the company’s history, the highly negative sales trend helped push EBIT performance into the red.
Continue ReadingGoodyear Losses Ahead of Analysts’ Predictions
Goodyear Tire & Rubber Company has reported first quarter 2009 sales of $3.5 billion, down from record sales of $4.9 billion in first quarter of 2008. However, Goodyear only reported net losses of $333 million, compared with Goodyear net income of $147 million (60 cents per share) in the 2008 quarter. While obvious significant the losses certainly weren’t as bad as they could have been for two reasons. Firstly, they were, according to financial news sources, ahead of mainstream analysts’ opinions; and secondly because the total losses are roughly equal to the increases in raw material costs the company experienced in the first quarter ($332 million, up 31 per cent). The explanation for greatly reduced turnover was said to be the tyre market’s sharply reduced demand in at the start of 2009, however as various sources are predicting that the US market has bottomed-out and raw material prices are believed to have stabilised, Goodyear could be in for a better second quarter.
Continue ReadingTyrexpo Africa to Add Industry Conference to 2010 Show
Plans for a tyre industry conference held as part of the next staging of Tyrexpo Africa in Johannesburg in March 2010, have been announced by event organisers ECI International. ECI wants to extend the scope and pulling power of the exhibition and has been encouraged to add a conference session by exhibitors and partners in South Africa. The one day conference will focus on key issues in tyre and rubber manufacturing, tyre retailing, developments in technology and the impact of new legislation. Keynote speakers will be drawn from the South African industry, together with major international players. The third staging of Tyrexpo Africa will take place at the Sandton Convention Centre, Johannesburg on 4, 5 and 6 March 2010.
Continue ReadingApollo Net Profit Down 52%
Apollo Tyres’ India operations profits were less than half that of last year according to the year-end financial report released today by the manufacturer (April 2008-March 2009). While net sales grew 10 per cent from 36.9 billion to 40.7 billion rupees in the period, operating profit came down to 3.3 billion from 4.7 billion rupees and net profit more than halved from 2.1 billion to 1 billion rupees. Despite the relative gloom of the full year figures, Apollo came closer to matching the January-March 2008 quarterly operating profit in the same period this year, down merely 40 million rupees from 2.14 billion to 2.1 billion. The board of directors recommended a dividend payout of 45 per cent to shareholders.
Continue ReadingAvon Scores Highly at European Rallycross in Kent
Avon Tyres, a brand owned and manufactured by Cooper Tire, dominated the opening round of the 2009 FIA European Rallycross Championship at Lydden circuit, in Kent. In a championship where tyre choice is completely open and where tyres have to provide traction on both asphalt and gravel on every lap, Avon reports that the popularity of its selection has increased over recent seasons. 37 of the 38 drivers who scored at Lydden use Avon Tyres.
Continue ReadingTeam Maxxis Bike Victorious over Time Attack Impreza
Modified Live, an event held on the weekend of 25 April, 2009 at Oulton Park witnessed saw the Team Maxxis Yamaha YZF-R1 superbike pitched against a modified Subaru Impreza to answer an eternal question: which is faster, four wheels or two. Following an early downpour and a last minute change to the programme, which saw the original car – a Norris Design SWB Mitsubishi Evo – replaced by a Subaru Impreza, driven by 2009 Time Attack Pro Class Champion, Olly Clark, from Roger Clark Motorsport. Under official timed trials, provided by Timing Solutions Limited, Clark was the first to take to the track. He drove his 2009 RCM 850bhp Impreza around three laps of the shorter Island circuit, recording 1:27:588 on his second. Unperturbed by the Impreza’s time, Team Maxxis rider Dave Johnson took to the circuit, and by the start of lap two, felt comfortable enough to open the throttle of the 185 bhp Superbike, finishing his second lap in a time of 1:25:566, 2.022 seconds faster than the RCM Impreza.
Continue ReadingGoodyear Added to JPMorgan SMid Money List
Goodyear Tire & Rubber was one of three companies whose stocks financial services firm JPMorgan added to its small and mid-cap money list on April 24. According to JPMorgan, Goodyear was added to the SMid Money list, as it is likely to benefit from a market rotation into cyclicals from defensives. Following the announcement shares in Goodyear surged 11 per cent to US$10.91.
Continue ReadingVredestein Launches Ultrac Cento
Dutch tyre manufacturer Vredestein has launched the new Ultrac Cento high performance tyre. At the launch, Vredestein UK managing director, Stuart Jackson explained that the company is aiming its latest tyre at the kind of high mileage, high performance motorists that drive Mercedes, Audis and other 16 to 17-inch 45 to 55 series fitments. The Centro is 20 per cent lighter than its predecessor and has been developed with compliance to the new EU noise, wet grip and rolling resistance regulations that are scheduled for introduction in 2012. Therefore, as you would expect, it includes a –SW (noise and wet grip) mark on its sidewall signifying this. It is Y-rated, indicating that its can cope with speeds up to 300 km/h, and is already available in 13 sizes. This includes two run-flat fitments – 225/50 R17 94Y and 225/45 R17 91Y.
Continue ReadingGoodyear Supports UK Flood Rescue Team
Goodyear UK is to sponsor the Royal National Lifeboat Institution’s Flood Rescue Team, funding a raft of specialist training and equipment, synergistically linking the manufacturer’s emphasis on safety with its charity work. The RNLI’s Flood Rescue Team is a uniquely trained arm of the RNLI, able to operate worldwide to assist in rescues in flood hit areas. Having raised money for the charity in the past through tyre sales, Goodyear states that it is pleased to be taking the relationship a step further by supporting this vital service. Goodyear UK brand manager Michelle Fisher said, “Through our previous fundraising for the RNLI we learned about the inland work carried out by the Flood Response Team, and the amazing help that they have given so many people in areas that you wouldn’t necessarily think could be affected by such dangers. There is great synergy between our organisations due to our own commitment to safety – our wet weather specialist tyres are designed to save people’s lives in wet conditions, RNLI volunteer crew members save people at sea around the coasts of UK and ROI every day.”
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