After an April to June period punctuated by negative EBIT and a net loss, tyre maker and automotive components supplier Continental says it is “looking ahead to the second half of the year with optimism.” It is also maintaining its full-year outlook despite a current headwind that chief financial officer Katja Dürrfeld describes as being “rather like a hurricane.”
Although Chinese factories produced significantly fewer tyres in the first half of 2022 than in the same period last year, monthly figures released by the country’s National Bureau of Statistics show a return to year-on-year growth in June. A total of 76.98 million tyres were manufactured within China last month, a 1.2 per cent year-on-year increase and 6.75 million more than were produced in May 2022.
In a market hit by the systemic impacts of the conflict in Ukraine and the health crisis, the Michelin Group reports that its net income fell by 18.3 per cent despite a year-on-year increase in sales. The tyre maker nevertheless considers this a good result “in an extremely unsettled environment.”
UK car production in grew in May 2022 for the first time since June 2021. The Society of Motor Manufacturers and Traders (SMMT) report that a total of 62,284 units left factory gates during the month, a rise of 13.3 per cent. SMMT notes, however, that the increase must be viewed in context against May 2021, which was still suffering significantly from pandemic-related headwinds. Output remains 46.3 per cent below the pre-pandemic month in 2019, with ongoing supply chain issues, increasing economic uncertainty, rising business costs and disruption caused by the war in Ukraine.
Michelin is growing its non-tyre activities with the debut of Michelin AirProne, an air cushion kit designed for patients suffering from acute respiratory distress syndrome (ARDS). Made by AirCaptif, a French start-up that Michelin acquired in 2021, the kit will soon be available throughout Europe following its initial launch in France.
When the going gets tough, diversify. This strategy helped storage systems specialist Arcom weather the storms of the past two years. The Polish company is once again enjoying strong demand, both within the tyre industry and beyond. We caught up with sales manager Marcin Smulski during The Tire Cologne to find out more.
Announcing its financial results for the first quarter of 2022, tyre maker and automotive technology firm Continental states that it “performed well” during the period despite “an increasingly turbulent market environment.” It describes its Q1 2022 tyre business as “strong.”
Since March 2022, China’s government has imposed strict lockdown policies on several cities in response to the rapid spread of COVID-19. Shanghai, the economic centre of China, is one of the core lockdown areas. According to information available to Tyrepress, it appears the entire industry is feeling the restrictions hitting production, logistics and retail in Shanghai and surrounding cities.
Due to several factors, Continental is adjusting its outlook for fiscal 2022. The company expects global production of passenger cars and light commercial vehicles to increase by between four and six per cent year-on-year in 2022, a lower rate than the six to nine per cent growth that the prior outlook (published 9 March 2022) was based on. Negative effects from cost inflation for key inputs, especially for oil-based raw materials as well as for energy and logistics for the Tires and ContiTech businesses, are also becoming significantly more material.
UK new car registrations fell by 14.3 per cent to 243,479 units in March. Despite manufacturers reporting robust order books during the first quarter, the Society of Motor Manufacturers and Traders (SMMT) shares that ongoing supply chain shortages – especially of semiconductors – continued to squeeze supply during what is normally a busy ‘new plate’ month.
Although chief executive officer Nikolai Setzer believes the past financial year was “a very trying one” for Continental and a period presenting “many challenges,” the tyre maker and automotive solutions company nonetheless managed to achieve a positive net income in 2021 after two consecutive years of losses.
UK car production fell 20.1 per cent in January, to 68,790 units. The Society of Motor Manufacturers and Traders (SMMT) says this is the weakest January total since 2009. Output was down 17,262 units against the same month last year, which itself was one of the worst Januarys on record when volumes were impacted by friction in the new post-Brexit trading arrangements, extended shutdowns and the pandemic.
According to US government-funded news service Radio Free Asia (RFA), North Korea is facing a shortage of tyres that is forcing many vehicles off the road. RFA explains that the tyre shortage results from the two-year-long border closure and trade ban with China imposed to stop the spread of COVID-19. It adds comments from sources who say domestic tyre production is “negligible” and importing these products has been “almost impossible.”
Last year, new car registrations grew by a marginal 1.0 per cent on a pandemic-ravaged 2020, as 1.65 million new cars entered the UK market. Figures released by the Society of Motor Manufacturers and Traders (SMMT) underline the ongoing impact of Covid and the semiconductor shortage on the industry, with the market down 28.7 per cent on pre-pandemic 2019, representing the second worst year since 1992.
COVID-19 is limbering up to cast its shadow over us for a third year, and exhibition organisers are cancelling or postponing shows scheduled for the early months of 2022. Agricultural sector fair the LAMMA Show is the latest to announce that it won’t take place on the previously announced dates.