Superior Industries Wins Mitsubishi Business
Superior Industries (Van Nuys, Ca.) has taken on the Mitsubishi Motor Manufacturing of America (Normal, Il.) as a new customer for cast aluminium wheels.
Wheels
Superior Industries (Van Nuys, Ca.) has taken on the Mitsubishi Motor Manufacturing of America (Normal, Il.) as a new customer for cast aluminium wheels.
1999 Cragar Industries (Phoenix/USA) sold most of the assets of its wheel business to Weld Racing and to Carlisle Tire & Wheel. The remaining assets have now been sold to midwest distributor PDK, Inc. and so the company has abandoned its (until now) core business of producing and distributing wheels. Cragar is still in the wheel business as the licensor of its brand, but is focussed now on Internet business.
The large manufacturers of car wheels, especially those cast of aluminium, are growing ever larger. Business is booming worldwide, but the financial results of most manufacturers in this field of activity are well below those achieved in other industries. Wheel manufacturers, on the one hand, suffer from the low ratings stock exchanges accord to car manufacturers and their suppliers, and on the other, because their products are regarded as “low tech”. But all the time big changes are taking place in the world of wheels – in the form of new technologies and an optimisation of existing products. New wheel technologies, however, are not the only decisive factor, another considerable influence is the car manufacturers’ aggressive pricing, well beyond what many a supplier can bear. Some wheel manufacturers focus their activities on the original equipment market in the belief that it will allow them to operate more cost-effectively. Others like to commit themselves to the refit markets because they think they can thus keep their ears closer to the market and be well-placed to offer car manufacturers superior development capability. Which way is the right one, or whether both can succeed – that is something we shall only know in a few years’ time. Of course the starting position is different from wheel manufacturer to wheel manufacturer and from car producer to car producer. In the comprehensive report in this and the following (April) issues we shall outline the trends in detail.
Titan International (Quincy, Illinois), manufacturer of wheels and tyres for off-highway vehicles, has announced a cash dividend of $ 0.015 for the first quarter of 2000. In 1999 Titan’s sales declined and a net loss was recorded.
Hayes Lemmerz sales and earnings in the first quarter 2000 were at the same level as last year. A significant drop in orders for heavy truck wheels and brake components was compensated by a successful expansion of aluminium wheel capacity worldwide.
Italian brand Melber had to leave the German aftermarket for alloy wheels last year. In co-operation with Euro Consulting and sales manager Josef Holder the company is now planning a relaunch of the brand in the German market.
Hayes Lemmerz, the world’s leading supplier of wheels, has announced record 1999 fourth quarter and full year figures in both earnings and sales. The strong expansion of the wheel business (especially aluminium wheels) and the acquisition of CMI are the main reasons for the good results. Hayes Lemmerz also announced the contract for its sixth wheel/tire assembly facility: for BMW in Munich.
Hayes Lemmerz International, one of the world’s leading suppliers of wheels, brakes, powertrain, suspension, structural and other lightweight components to the automotive and commercial highway markets, has announced that its Board of Directors has approved the repurchase of up to an aggregate of $30 million of its outstanding Common Stock. “Based on current market prices, our stock is at a historical low and we believe that the repurchase program is a good investment of available funds,” said Ron Cucuz, Hayes CEO and Chairman of the Board.
Speedline is a well-known producer of light alloy wheels for original equipment. However, the Italians want to improve their position in the aftermarket and thus a sales company has been formed for Germany in Ravensburg: SL Corse.
Alloy Wheels International (AWI), a subsidiary of South African company Murray & Roberts, has closed its Cardiff plant because of an expected fall in demand from oe customers Rover Cars and Land-Rover and reduced competitiveness because of currency problems. 250 jobs are lost.
With the sale of assets Titan International (Quincy/Illinois), a manufacturer of speciality tyres and wheels, has exited the oe business with lawn and garden equipment as well as all terrain vehicles (ATVs) and improved its second quarter results due to the price paid by Carlisle Tire and Wheel Co. The new strategy of Titan will be to concentrate on agricultural and construction wheel business and tyre assemblies and to focus more on aftermarket demands.
The division Speedline Truck supplies the major truck manufacturers in Europe and North America. In future the range will include flow-formed wheels – for trucks Speedline uses this technology exclusively, which has the effects of reduced weight and improved mechanical properties.
North America’s Accuride Corp. (Evansville/Indiana) is an enormously profitable producer of steel and aluminium wheels for trucks and recorded a record jump in sales to more than 500 million US-$ in 1999. Founded by Firestone in 1905, the company was sold in 1986 to Phelps Dodge Corp., cooperated with Goodyear 1992 and was sold again in 1998 to investment group Kohlberg, Kravis and Roberts (KKR). Now the automotive supplier has its eyes set on the European market for investments, maybe also in aluminium wheels for cars.
Superior Industries (Van Nuys/California), North America’s Leading oe supplier of aluminium wheels, announced record revenues of more than 331 m US-$ (+13.5%) and record net income to more than 40 m US-$ (+16.3%) after tax.
Italian company Lancia has built a new limousine as a present for the Pope. The car will be fitted with four special aluminum wheels produced by Speedline (Tabina).
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