Kumho To Compete In OE Business
Kumho Tire is seeking OE business in Europe and North America. The company has announced expansion of production in Asia, for example in the Nanjing factory.
Across the Atlantic they are called tires, while over here we use a “Y” and say tyres. This tag provides the latest tyre business news emanating from the United States of America (USA), whichever way you spell it.
Kumho Tire is seeking OE business in Europe and North America. The company has announced expansion of production in Asia, for example in the Nanjing factory.
The new administration building an R&D-Centre has been officially opened in September. The two storey building has 250.000 square meters and the costs were 40 million US-$. 540 employees, within weeks this number will climb up to 600, who used to work before in three different places in Detroit, are now working in the headquarter, which is located very close to the US-HQ from DaimlerChrysler. Continental Teves employs 2,100 people in North America. 32 % of its turnover of about 2.5 bn Euro are made in the US.
Quoted in the Asian Wall Street Journal, Bridgestone President Yoichiro Kaizaki said that the company’s factory in Decatur could be temporarily closed, should improvements need to be made. Mr. Kaizaki also said that permanent closure of the plant could not be ruled out.
Finnish tyre manufacturer Nokian has confirmed that the company intends to produce commercial tyres in the USA as soon as possible. The first products will be forest tyres, followed by industrial tyres. A spokesman for Nokian said that it had not yet been decided whether the company would build its own factory in the USA, whether there would be some kind of joint venture co-operation, or whether tyres would be manufactured in an off-take agreement. The Finnish company has been active in the US and Canadian markets for some years.
The Michelin Siam group is investing US$ 100 million to increase annual plant capacity from 2.9 million passenger and SUV tyres to 6 million, within two years.
Ford Chief Executive Jacques Nasser has described the news that the recall of Firestone tyres in the USA might take until next spring as “unacceptable”. Originally, the recall was scheduled to take until summer, but Bridgestone/Firestone announced the revised spring time scale this week. Production of Firestone tyres has doubled and imports have been increased to meet demand. Ford is said to be considering a number of ideas to quicken the recall, including providing rental vehicles for those who are anxious about the delay.
Cooper Tire & Rubber is cutting back on 1,100 jobs and scaling back, or shutting some 18 plants world-wide. Cutbacks at US plants in Michigan, North Carolina and Texas do not appear to affect tyre manufacture. Lay-offs at European plants have still to be confirmed and would be undertaken in consultation with employee representatives. The cutbacks come alongside announcements of record third quarter profits.
Marc P. Frissora, President and CEO of Tenneco Automotive since April 1999, succeeds retiring Dana G. Mead as Chairman of the US manufacturer of shock absorbers and exhausts.
A spokesman for Continental, in answer to a question from NEUE REIFENZEITUNG, agreed that the figures from General Tire for the first half of this year are significantly less than figures for the same period last year. Continental will officially release the half year figures on August 9th.
The Turkish conglomerate Sabanci Holding – the group which includes the Brisa joint venture with Bridgestone – has sold a 25% stake in another of its joint venture companies. Sabanci has sold 25% of Toyotasa to its partner Toyota Motor Corporation for US$ 109 m, leaving Sabanci with a stake in the company of almost 25%.
Armond Boyes has been appointed general manager of Goodyear’s North American retreading operations. Boyes is responsible for overseeing Goodyear’s Next-Tred retreading program, including the design, development and sales of Next-Tred products and the installation of retread plants throughout North America.
Employees at Continental General Tire’s plant in Bryan, Ohio USA have signed an agreement ensuring an increase in wages and pensions plus a regulation of working time (a four shift programme, seven days a week) up to the year 2006. The same agreement will apply in Charlotte, General Tire’s largest plant in North America, where employees had been on strike for over a year to achieve these improved conditions. Continental’s workforce has diminished from 1,450 to around 1,300 following the strikes.
In the USA, Goodyear has announced that three new dedicated Dunlop tyre lines will be available from Goodyear and Gemini outlets. These are the Dunlop Citation, the Citation HP (both for passenger cars) and Dunlop Pioneer for 4×4 vehicles.
Sales are up in the year 2000 and profits have gone like snow in the sun. That, in short, describes the present situation of Continental General Tire in North America. But red figures are not an option. Bernd Frangenberg (59) President and CEO of CGT, vigorously denied the possibility that he could be forced to inform the parent company about red figures at the end of the year. All the necessary actions have been taken to make sure that CGT remains profitable even in a difficult climate, Frangenberg declared Tyres & Accessories. Continental General Tire employs 9000 people and runs 5 factories in the US and 2 in Mexico. Last year’s turnover was about 1.5 bn Euro.
More concern for Bridgestone; reports in Business Week say that the US National Highway Traffic Safety Administration has received around a dozen complaints concerning sidewall bulges on Bridgestone Potenza RE040 tyres, fitted to Audi S4 sedans. An Audi spokesman said there was no cause for concern and the NHTSA said that there was no safety investigation planned.
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.