Good News At Last For UK Car Industry
After the recent run of bad news in the UK car industry, there was good news when Vauxhall announced it was to invest £189 m in its British manufacturing operation, creating an estimated 500 jobs.
Continue ReadingContinental Wants To Buy Back Shares
The German newspaper Handelsblatt says in todays issue that Continental is planning to buy back its own shares. This will be confirmed at the general meeting taking place on May 19th. The Supervisory Board proposes the usual limit of 10 p.c. of the original capital and a time limit up until the end of October 2001. With this move Continental wants to keep the option open to make acquisitions by exchanging shares.
Continue ReadingMichelin’s F1 Tyre Development Continues
Tom Kristensen, in a BMW-engined Williams FW21B, tested the latest version of Michelin F1 tyres in Miramas. The Dane was very impressed with the standard of the Michelin program and the technical progress the engineers achieved between the two 4-day sessions.
Continue ReadingGlobal Players – An In-Depth Analysis
More and more nowadays, we hear that the tyre industry is becoming increasingly global and ever-more companies describe themselves as a global player. But what exactly makes a company a true global player? An in-depth article in TYRES & ACCESSORIES 6/2000 looks at the criteria by which a so-called ‘global player’ should be judged and concludes that the only three companies that merit this term are Bridgestone, Goodyear and Michelin. The article examines in detail each company’s performance in the world’s most important markets, their market shares and turnover figures, their strengths and weaknesses and their prospects for the future. The article goes on to examine the home markets of the global players (USA, Europe and Asia) and discusses the performances of the lesser players and what is likely to happen to them. Todays global tyre market is one of acquisitions and alliances, mergers and new technological advances. Competition is intense and, in terms of market share, none of the big three seems able to leave its rivals standing, neither is the gap between the big three and the second three growing. Having said that, none of the second three stands a realistic chance of becoming a true global player in the future. The article gives a detailed, objective assessment of today’s tyre industry, together with some speculation concerning what might happen in the future.
Continue ReadingNew Industry Quality Standard Set By Goodyear’s OTR Retread Plant
Goodyears retread plant in North Bay (Ontario, Canada) is believed to be North America’s first Off-The-Road (OTR) tyre retreading facility to become ISO 9002 registered. The North Bay facility is Canada’s largest OTR retread operation.
Continue ReadingHonda Cuts UK Components
Honda is to reduce the numbers of components sourced in the UK. The ultimate aim is to have a 50/50 split between UK and mainland European-produced components (the current ratio is 75/25). Suppliers have also been asked to be more competitive. Currency fluctuations and the weak Euro were blamed for the move.
Continue ReadingLosses For Vredestein Group
After good a result for 1999, Vredestein NV has reported losses for the first half year in spite of satisfying results in the tyre business sector. The main reason for the bad figures was given as the consequences of an acquisition by subsidiary company Hevea, a producer of boots.
Continue ReadingEarnings Of Hayes Lemmerz Impacted By US Truck Production
Hayes Lemmerz International has announced results for the first six months of 2000. Sales were $1,138 million ($1,132), diluted earnings per share were $ 0.73 ($ 0.93). Business was impacted primarily by the drop in heavy truck production in the United States, coupled with the devaluation of the Euro against the Dollar.
Continue ReadingTyre Recall No Problem For Firestone In Europe
From 1991 up to the present, only about 16,000 tyres of the size in question have been sold in Europe. Most of these are no longer in use.
Continue ReadingManufacturing Agreements Signed Between Nokian And Michelin
Two agreements have been signed by Nokian and Michelin concerning the off-take manufacture of Nokian brand agricultural, industrial and truck tyres at Michelins Polish factory. The agreements will last for three years and will be renewed annually thereafter. Sales of agricultural and industrial tyres will start this year and truck tyres early in 2001.
Continue ReadingNew Radial Motorcycle Tyre From Continental
Continental has launched a new radial tyre for motorcycles, targeting the sport touring segment. The ContiForce is available in three sizes for the front and in eight sizes for the rear.
Continue ReadingSignificant Changes In The European Tyre Markets?
During a press conference in Romania, Continentals CEO Dr. Kessel predicted very significant changes in the European original equipment markets. He pointed out that the consequences regarding the Firestone tyre recall will also have a great impact in Europe. Kessel believes that Firestone will lose many contracts and, among others, the Continental group would benefit and he added that there were already clear signals. But, signals yes or no, the Continental share price has fallen and it will be interesting to see whether news like this will stimulate the shares.
Continue ReadingFoundation Of The Next MIRS-Factory In Höchst/Germany
The foundation stone for a MIRS-factory was laid in the presence of Ministerpräsident Koch from the area of Hessen/Germany. Pirelli is investing 100 million Euro to produce about 1.5 million ultra-high-performance tyres by the year 2005. MIRS will create 200 more jobs. In addition to its own investment, Pirelli will receive an additional government grant of about 15 million Euro for meeting special environmental requirements.
Continue ReadingMulti-brand Salesforce From Hanover
From the beginning of 2001 the Continental Group will be working with a multi-brand salesforce on the German tyre replacement market. The salesmen will represent Continental, Uniroyal, Barum and Semperit. The aim is to streamline and improve relationships with trade customers. Gislaved (Reiff) and Viking (Meyer Lissendorf) will keep their exclusive distribution in Germany, while Mabor will be supplied almost exclusively to Volkswagen.
Continue ReadingIt’s M+M After All!
In its last issue NEUE REIFENZEITUNG speculated about an agreement between Montupet and Michelin in the area of aluminium cast wheels. The talks seem to be on hold for the time being, because at the moment both partners have their hands full with orders. Montupet is currently doubling its capacity to 2.5 million cast wheels. Kronprinz, the Michelin subsidiary in Solingen, is able to cast 1.4 million wheels with the equipment already in place. In its search for a strategic alliance partner (without seeking a direct participation) Michelin has now found steel wheel manufacturer Meritor, which has factories in Mexico and Brazil. Meritor is a business division of Rockwell, the large supplier to the automotive industry, and is also known by the trade name Fumagalli. With an annual capacity of about 25 million steel and aluminium wheels Michelin is roughly double the size of Meritor. The strategic benefit for Michelin is not only the geographical location of the two Meritor factories, but above all the close relationship between the supplier Rockwell and Chrysler. The principal reason for the cooperation between M+M, however, was Renault’s decision to produce the Mégane also in South America with the same steel wheels as in Europe, where they are made by Michelin. To comply with local content requirements, the South American Mégane will have Meritor wheels.
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