No Re-arrangement Of Continental/Michelin JV
Continental spokesman Peter Schwerdtmann has denied reports that Continental and Michelin are planning to re-arrange or discontinue their two-year-old joint venture which includes combined purchasing of raw materials and Michelins share of Barum. The teamwork between both companies is excellent, he said, and the joint venture will continue. Terms to form the basis of a new settlement would have caused problems because of the brand rights for Uniroyal, owned by Michelin, but produced in Europe by Continental, under licence.
Continue ReadingCompetition Authorities Approved Nokian’s Purchase Of Retail Chain
Competition authorities have approved the purchase of Rengsmestarit-Kumi-Helenius Group. Nokian bought the retail chain with 31 outlets and a turnover of 34 Million Euros in March 2000.
Continue ReadingRecommended By Analysts: Cooper Shares
In the USA, Cooper Tire & Rubber shares have seldom been so cheap. With the recent acquisitions, the market was not convinced that Cooper was running in the right direction, but after the first quarters good results, most have changed their opinions and are regarding Cooper with more optimism. An increasing number of experts are convinced that the Cooper management might use the low share price to buy back up to 10% of its own stock, which would have a positive effect. Apart from Cooper, Continental was the only other tyre and rubber manufacturer whose shares were tipped as a buy by analysts.
Continue ReadingStock Exchange: Goodyear Is The Loser
In the first week of July Goodyear shares were down, while Bridgestone, Michelin and Toyo Tires were all winners. Only a short time before, at the end of June Goodyear and Michelin shares had gone down as well as car manufacturers Mazda, General Motors, Volkswagen and BMW lost drastically. Mid June almost the same situation: Goodyear going down (this time Bridgestone and Cooper too) leaving only Yokohama as a winner.
Continue ReadingCash Dividend For Titan’s Second Quarter
Titan International (Quincy/Illinois) has announced a cash dividend of one and a half cents per common share for the second quarter of 2000.
Continue ReadingUS Order For ContiTech
Delphi Automotive has exclusively ordered membranes from ContiTech Elastomerbeschichtungen GmbH. They are to be used in pressure sensors for fuel injection systems. This year ContiTech will produce 40,000 of these membranes for the US-based automotive supplier, in 2001 the number will be doubled.
Continue ReadingNTDA Conference 2000
The National Tyre Distributors Association held its millennium conference in Portugal. Before the conference got under way, delegates were given the news that RapidFit had applied to join the association. The 300-strong chain of Ford dealers is the first of the vehicle dealerships to enter into membership. The keynote speaker at the conference was Sir Tom Farmer, one of whose points was that the association should consider becoming more commercial and explore the possibility of setting up a buying group for members. Other speakers explored the themes of the impact of e-commerce and the internet on tyre retailing and what tyre dealers can do to take advantage of the opportunities which are liable to arise in the future. The impact of legislation – existing and forthcoming – was another topic, including the implications of the proposed End of Life Vehicle Directive. There was a different format for the second day, when delegates broke into groups to discuss the three subjects of scrap tyre disposal, e-commerce and the changing face of tyre retailing, reflecting the previous day’s subjects. The group chairmen then reported back to the meeting and the conclusions were presented to the NTDA in order to guide the association as to its future strategic direction in these areas. Debate was lively and everyone agreed that the new format had been a resounding success.
Continue ReadingContinental Number 34 In German Company Rankings
In a list of the 100 largest German industrial and trading companies, published in the newspaper Süddeutschen Zeitung, Continental was ranked in 34th place, with a 1999 turnover of 9.132 bn. Euros. This is a rise of eight places from the previous years list. The leading trio remains unchanged; undisputed leader is still DaimlerChrysler, followed by Volkswagen and Siemens.
Continue ReadingDifferences Between Ford and Firestone Continue
With court appearances imminent lawyers for Ford and Firestone are still discussing how to consiolidate some 100 cases being brought against them in federal courts. It is still hoped to draw all claims before a single judge for a pre-trial preparation. However, continuing differences between Ford and Firestone may lead to a split defence. Plaintiffs lawyers are said to be jubilant at the lack of united front on the recall.
Continue ReadingMilitary Contracts For Goodyear Worth $16 Million
Goodyear has won new and extended contracts for off-the-road tyres from the US Army, valued at $16 m. One is an $11.5 m deal to supply AT-2A traction tyres (size 14.00R20) for five-ton cargo trucks. The extended contract is for $4.5 m to supply the same tyres in size 16.00R20.
Continue ReadingJob Cuts At Tenneco Automotive USA
Tenneco Automotive, the manufacturer of Monroe shock absorbers and Walker exhaust systems, has laid off 285 salaried workers at four sites in the USA. The move follows a steep fall in operating profits and is part of a world-wide programme of up to 700 job cuts. Tenneco has 70 factories in 21 countries.
Continue ReadingSenate Approves New Powers to NHTSA
The US Senate, last night approved legislation prompted by the Bridgestone Firestone tyre recall. The new measures strengthen reporting requirements for automotive related manufacturers. The enforcement powers given to the National Highway Traffic Safety Administration allow them to impose civil and criminal penalties for misleading the government about auto defects which result in death and injury. The maximum civil penalty for violations has been raised from $925,000 to $15M, and prison terms of up to 15 years have been prescribed, alongside fines of up to $100,000 for withholding information in cases where death occurs. The legislation instruct NHTSA to conduct tests into SUV safety and issue rules requiring the fitting of safety devices to warn drivers of underinflated tyres.
Continue ReadingEBIT Expectations Of Michelin Confirmed
In an interview with the French newspaper Le Figaro, the Michelin management has confirmed that it expects an EBIT of between 7.2 and 8.2 per cent for this year, which has to be regarded as a success under the present economic circumstances.
Continue ReadingStock Exchange Unfriendly Towards Tyre Manufacturers
While Pirelli and Toyo shares - although only from time to time - displayed an upward trend in February, most of the other important tyre manufacturers (for example Bridgestone, Continental, Cooper, Goodyear and Michelin) were among the losers. Their shares have fallen to a new 52-week low, but shares in Yokohama rose 20 per cent at the end of February.
Continue ReadingGoodyear Top Management Under Pressure
The sharp drop in prices of Goodyear shares over the past three months has put extreme pressure on Goodyears top management. Possible reasons for the drop include increased raw material costs and apprehension among shareholders that the Dunlop acquisition could have a negative impact on results in the year 2000.
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