Wheel Supplier Superior Hit by Ford Production Cuts
The cut in production of 60,000 units Explorer and Ranger models by Ford in the second and third quarter could cost aluminium wheel maker Superior $2.5 million in revenue.
The cut in production of 60,000 units Explorer and Ranger models by Ford in the second and third quarter could cost aluminium wheel maker Superior $2.5 million in revenue.
Back in October, Tenneco Automotive announced that 285 jobs were to be cut in the USA, as part of a plan to reduce salaried staff by 700 by the end of this year. The company has announced another 405 salaried job losses worldwide, blamed on the state of the global automotive aftermarket and reduced vehicle production in the USA.
Pirelli P6000 Powergy and PZero Asimmetrico tyres have been approved for five models of Jaguar’s new X-Type compact sport saloon, for the European markets. The tyres chosen are 205/55 R16 91V (Powergy) and 225/45 ZR 17 91Y (PZero Asimmetrico), and the contract continues a relationship that began in 1985. Recently, Pirelli’s Wheel and Tyre Assembly Division, which started operations in 1999 to supply Jaguar’s car plants in Coventry and Castle Bromwich, recently produced its one millionth wheel and tyre assembly during a production run of PZero tyres for X-Type.
Tenneco Automotive has acquired a plant in Gliwice, south-west Poland, to produce shock absorbers for OE manufacturers based in Europe. The investment is $20 million and involves refurbishing the site and installation of new equipment. Production is scheduled to begin in the third quarter of this year. Richard Sloan, MD of Tenneco Automotive Europe, said that the low labour and operating costs, plus special investment conditions in the Katowice Special Economic Zone, made the decision to come to Poland “straightforward”.
Ford’s Just In Time supply chain is expected to feel the effects of Ford’s cutback in production as the company replaces potentially dangerous Firestone tyres. The idling of three production lines will cut production by 24,000 vehicles, with a further cut to follow. Suppliers such as Lear Corp, Dana and Borg Warner are amongst those announcing reductions in forecasts due the knock-on effect of the Ford stoppages. Earnings forecasts are being affected by as much as 15 per cent according to some analysts.
Korean tyre manufacturer Hankook has received an order from Volvo to supply the spare tyre (size T 125/80 R17) for the models V70, S60 and S80, from 1st July this year. It is said that Michelin, who produced these tyres up till now, has delivery problems due to a reduction of production in Great Britain. The order from Volvo is worth around 5 million Euros and for Hankook, it is another foot in the Ford door after the company won its first OE order from Ford last year.
Automotive supplier TRW has received orders worth 900 million US-Dollars from Renault (for the Megane) and Fiat (for the Stilo), concerning the production of Electrically Assisted Steering systems (EAS) for this year and beyond. These new contracts bring TRW’s volume for EAS-systems in 2001 up to 500 million US-Dollars. The steering-systems for Fiat will be developed in Birmingham and produced in Livorno (Italy). The steering system for Renault will be developed and manufactured in Pamplona (Spain).
Autopolis, the Bear-ish auto industry strategist is likely to downgrade forecasts for the US and North American automotive markets. Despite high sales, production is down by 20% and stocks 40% above normal. This follows an earlier warning of a forecast 11% drop in world-wide (in Western Europe and Asia too) demand, and alerts issued by Autopolis regarding over capacity, and the need to cut costs and improve marketing.
Goodyear’s Wolverhampton plant gets a new production director. Hugh Thompson brings 30 years’ experience in the rubber and plastics industry to the operation. Thompson was the vice president of manufacturing for Dunlop Tyres in North America. He replaces Serge Lussier, who has moved to Brussels to take up the post of director of manufacturing, Eastern Europe, Africa and the Middle East.
Gerd Stubenvoll (39), who has worked for Dunlop for ten years in different positions in the mid-European sales companies, has been named as managing director of Pneumant, with special responsibility for sales. Jeffrey Smith (53) has been appointed production director in Fürstenwalde. His predecessor, Alexander Bleider (42) is now responsible for production at the Luxembourg plant. Dr. Rainer Schieben (38), MD of Pneumant until last autumn, has, for some months, been responsible for sales as sales and marketing director for associated brands at Goodyear’s European HQ in Brussels.
Goodyear has reached an agreement with the Spanish Institute of Magnetism and electronics manufacturer 3BYMESA to develop a prototype tyre wear sensor for possible mass production. Initial development has been by the Institute of Magnetism, further development of the sensors, antennae, transmitter and receiver will be the responsibility of 3BYMESA.
Russia’s leading tyre manufacturer, Nizhnekamskshina, is to boost capacity by 2 million steel belted radial car tyres by 2002. There are also plans to create new truck tyre lines by 2003, to produce 17.5, 21.5 and 22.5 truck tyres for the domestic market. The $60 million investment is being supplied by a major Russian oil company and will see car tyre production rise to 7 million units, though overall output will remain at around 12 million.
Thailand, Indonesia and Malaysia – the world’s three biggest rubber producers – have agreed to cut natural rubber production by 4 per cent next year in an attempt to increase prices. However, traders are sceptical of the chances of success, saying that many rubber producers are small, private businesses which would be difficult to control.
On January 1, 2001, Degussa-Hüls transferred its DMT (dimethyl terephthalate) business to a separate legal entity. The new company, Oxxynova, will initially operate as a marketing operation. Production of DMT, including two production facilities, employing 250, will be transferred to Oxxynova GmbH & Co KG (Marl, Germany) on April 1. DMT is a base product used in the manufacture of polyester. DMT based polyester uses include, for example, the reinforcement of car tyres. Oxxynova is the European market leader with total production capacity of 480,000 tons.
One year into their partnership, TRW and Michelin announce their first business award with a major European original equipment manufacturer (OEM). The product, called “En Tire”, is a state-of-the-art tyre pressure monitoring (TPM) system underscored by the radio frequency technology of TRW and the tyre experience of Michelin. To extend beyond their existing development programmes, TRW and Michelin are actively the next generation TPM system for production in 2005.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.