News in english

BRIDGESTONE REBRANDS M729, R168 PATTERNS AS RETREADS

As of Jan. 1, The Qualitread M729 drive tread and R168 trailer tread are both now rebranded under the Bridgestone Retread name in Europe. Beginning in April, the Qualitread M729 Evo will also join the Bridgestone Retread lineup. Bridgestone's M729 regional drive tyre with its deep, multi-block pattern is renowned for its high mileage and resistance to irregular wear. The wide-base R168 regional trailer pattern provides excellent mileage performance for all on-road applications, Bridgestone said. These additions to the Bridgestone Retread lineup are part of Bridgestone's new global strategy to progressively rebrand all Qualitread patterns under the Bridgestone Retread or Bandag names. The combined Bridgestone Retread and Bandag lineups are produced by the network of Bandag's 140+ European dealerships.

 (The Smithers Report - Jan .19)

 

BANDAG ACTIVITIES IN TURKEY ACQUIRED BY BRISA

Bridgestone Europe has sold its Turkish Bandag operations to Brisa, a joint venture of Bridgestone Corp. and Sabanci Holding, for $3.6 million. Until now, the Turkish operations of Bandag were controlled by Bridgestone Europe, following their acquisition of Bandag EMEA in 2008. Commenting on the acquisition, Akihito Ishii, director of truck and bus tyre division of Bridgestone Europe, said, "Bridgestone and Bandag strive to reduce the operating costs of fleets by offering a solution package of new tyres, retreads and service. The integration of the Bandag activities within Bridgestone Europe has enabled us to strengthen that package. We have always cooperated will with Brisa and Bandag in Turkey, but we believe that this change will enable Brisa and Bandag to enhance their solution package for Turkish fleet operators. At the same time, it will allow us to use our resources to provide an even better service to our network in the rest of Europe."

 (The Smithers Report - Jan .19)

 

BRIDGESTONE MUSEUM THE BEST PLACE TO GET YOUR FILL OF CULTURE

The best places to get your fill of culture, from a giant sculpture garden in the Netherlands to contemporary art in an Italian palazzo

The Guardian, Monday 17 January 2011

Bridgestone Museum of Art, Tokyo
This is one of Tokyo's best private art museums and was founded by Mr Ishibashi (his name means stone bridge), the president of Bridgestone Tires. It houses a small but impressive collection of French impressionist art. It is also a rare opportunity to see Japanese paintings in the western style dating from the Meiji period onward. Since there are only 10 small rooms of displays, it makes a quick and worthwhile one-hour detour if you're in the vicinity of Tokyo JR station. There is also the delightful, if expensive, Georgette tearoom.
Bridgestone Building, 1-10-1, Kyobashi, Chuo-ku,+81 3 3563 0241, bridgestone-museum.gr.jp
 

 

Skoda will create several hundred jobs in 2011
Automotive News Europe -- January 20, 2011 06:01 CET

PRAGUE (Reuters) -- Volkswagen AG's Czech unit Skoda plans to create several hundred new jobs across all parts of production this year.
"The new positions are being created mostly in connection with foreign projects and the development of new cars," Skoda said on Wednesday.

Skoda sold 762,600 vehicles in 2010, an 11.5 percent rise and a record year for the brand, the company said in a statement earlier this month. The automaker said it aimed to double sales by 2018.

Sales of the brand grew in all markets with the fastest growing seeing growth of more than 40 percent, Skoda CEO Winfried Vahland said in the statement.
The automotive industry is a key driver for the Czech economy which is expected to grow around 2 percent in 2011, according to finance ministry forecasts.

 

Fiat hires former top Toyota exec to help revive sales

Luca Ciferri  - Automotive News Europe -- January 19, 2011 08:00 CET

TURIN – Fiat brand CEO Andrea Formica has lured his former boss at Toyota Motor Europe, Thierry Dombreval, out of retirement to help end a steep decline in the Italian automaker's European sales.

Dombreval, who stepped down as Toyota Europe's chief operating officer and executive vice president in early 2010, is the new head of European sales at Fiat Group Automobiles S.p.A. three passenger car brands and for Jeep, according to an internal document seen by Automotive News Europe.

Formica, who is also head of passenger sales at Fiat Group Automobiles, said in the document, dated Jan. 10, 2011, that Dombreval has been “assigned responsibility for the new position of Sales Europe, reporting to me.”
Fiat declined to comment.

Dombreval is a seasoned auto executive who has gained extensive pan-European experience while working at Ford, Renault and Toyota. During his nearly eight years with Toyota Europe, the 63-year-old Frenchman won praise for his ability to work so well within diverse regional European cultures as he built up the Japanese automaker's business in new markets. That skill and his deep knowledge of the industry earned him the Automotive News Europe Eurostar award for Sales & Marketing in 2004.

As Toyota Europe vice president for sales, marketing, product planning and communication, Formica, 50, reported to Dombreval, who at the time of his departure was the highest ranking European executive at Toyota Motor Corp.

Formica joined Fiat from Toyota Europe in September 2010. Along with running the Fiat brand, the Italian national oversees sales at the Alfa Romeo, Fiat and Lancia brands and leads Chrysler's European sales.

Formica inherited a group of brands that is in trouble. European sales for the Alfa, Fiat and Lancia brands fell 17.4 percent to 1.02 million units last year, according to industry association ACEA. That decline was three times worse than the overall market, which was down 5.5 percent to 13.36 million units. Fiat's sales decline has hit the bottom line, according to Bernstein Research auto analyst Max Warburton, who estimates that Fiat Group Automobiles lost almost 800 million euros ($1.07 billion) in Europe in 2010.

Fiat will report its unit sales and financial data for 2010 on January 27.

Fiat Group Automobiles' first problem has been the end of car scrapping incentives that in 2009 and for part of 2010 encouraged car buyers in Europe's biggest markets to trade in their old models for small, inexpensive, fuel-efficient cars such as the Fiat 500, Panda and Punto.

The second problem is that Fiat is in a product trough. The Fiat brand's newest model, the 500 minicar, has been on the market for three years.

In June, the group will start a model offensive by launching sales of the third-generation Lancia Ypsilon subcompact and the Fiat Freemont, a rebadged Dodge Journey large SUV. The European versions of the new Chrysler 300 large sedan, the 200 mid-sized sedan and cabriolet and an updated Voyager large minivan will debut at the Geneva show in March. All four go on sale wearing the Lancia badge in most of Europe starting in the fourth quarter. The four models will be distributed by Fiat but sold as Chryslers in the UK and Ireland, where the Lancia brand is not sold.

 

BATO RESTRUCTURES CONSUMER TIRE BUSINESS (UPDATE)

Bridgestone Americas Tire Operations (BATO) has announced a new fully integrated management structure for its Consumer Tire Business in the U.S. and Canada. The new structure will facilitate continued growth and make the business even more customer-focused, BATO said in a news release. Effective immediately, the reporting structure of the original equipment (OE), replacement/wholesale, and retail consumer tire business in the U.S. and Canada, as well as Credit First, NA (the company's private label credit card business) (CFNA) is consolidated "to ensure a consistent strategic direction in this dynamic market," BATO said. The new structure is intended to make certain that each aspect of the Consumer Tire Business is working in a collaborative manner that enhances the company's business and strengthens its relationships with its customers and consumers, the news release said.

(The Smithers Report - Jan .19)

 

BATO APPOINTS NEW TEAM TO LEAD CONSUMER TIRE BUSINESS (UPDATE)

Larry Magee, formerly chairman, CEO and president of Bridgestone Retail Operations (BSRO), has been promoted to president, Consumer Tire U.S. & Canada, BATO. John Baratta has been promoted to vice president, Consumer Tire U.S. & Canada, BATO, a title he holds concurrently with his position as president, Replacement Tire Sales, U.S. & Canada Consumer Tire Sales Division, reporting directly to Mr. Magee. Also reporting to Magee are these senior management team leaders: Mike Martini, president, Original Equipment Tire Sales, U.S. & Canada Consumer Tire Sales Division; Matt Hoskins, formerly COO, BSRO, who has been promoted to president, BSRO; and Dean Miller, president, CFNA, continues to lead BSRO's private label credit card business. All these appointments became effective on Monday (Jan. 17).

 (The Smithers Report - Jan .19)

  

Bridgestone Middle East & Africa FZE Launch A GCC-Wide Tyre Safety Campaign To Reduce Numbers Of Regional Road Traffic Accidents 

Bridgestone Launch A GCC-Wide Tyre Safety Campaign To Reduce Numbers Of Regional Road Traffic Accidents Region’s drivers urged to observe proper tyre care and maintenance to reduce road accidents. Bridgestone’s Tyre Safety and Eco-Station Campaign Road Show set to tour GCC malls.

Dubai , UAE - January 19, 2011: 

Bridgestone Middle East & Africa FZE today announced details of its ‘Tyre Safety and Eco Station’ campaign which urges the region’s drivers to check their tyre pressure and tread in a bid to enhance driver safety and reduce the incidence of road traffic accidents. The campaign, which will tour malls across each of the six GCC states over the next six months, reflects not only the high incidence of road fatalities in the region, but also marks the start of the UN’s Decade of Action for Road Safety 2011-2020.

“Driving with tyres at incorrect air pressure, or that are worn-out or damaged has serious safety implications,” says Mr. Takumi Kakara, Marketing Director, Bridgestone Middle East & Africa. “Our campaign, which will run in major malls across the GCC from February to June this year, will educate consumers on the importance of regular tyre checks and maintenance; focusing on how to properly check tyre air pressure, tread wear, and detect any signs of damage. Not doing so can have deadly impacts; for example, under-inflated tyres are prone to overheating – a problem which is amplified in the extreme weather conditions experienced by Gulf drivers. Over-inflated tyres also pose a real danger, causing problems with steering and cornering, particularly at high speeds. That’s why our message is simple – don’t put your family at risk, check your tyres regularly. For regular and professional assistance on tyre care and maintenance, we also recommend that drivers visit their local Bridgestone tyre service centre for help and advice.”

The need for the Bridgestone campaign is clear - the World Health Organization’s Global Report on Road Safety (2009) recorded road deaths in the Eastern Mediterranean Region, which includes the GCC, as the joint highest in the world along with African nations. Within the GCC States, the UAE recorded the highest incidence of road fatalities at 37.1 per 100,000 population, far above the global average of 19 per 100,000. Second highest was Saudi Arabia, at 29, then Qatar at 23.7, and Oman at 21.3. Only Kuwait and Bahrain came in below the global average, at 16.9 and 12.1 road deaths per 100,000 people respectively.

As well as pointing out the safety benefits of proper tyre checks and maintenance, the campaign also emphasizes the positive environmental impact of maintaining correct tyre pressure.

Driving at the correct pressure reduces fuel consumption, which in turn minimises the environmental impact of a journey, and saves the motorist money.

The ‘Tyre Safety and Eco Station’ campaign will launch on the first weekend of February in Muscat, Oman. During the roadshow, Bridgestone will distribute Tyre Safety booklets and a free Bridgestone Tyre Safety gauge that measures air pressure and tread depth. The campaign is scheduled to tour all the GCC countries in the coming months, visiting: Doha, Qatar in March; Riyadh, Kingdom of Saudi Arabia in April; Manama, Bahrain in May; Kuwait in May; and finally Dubai, United Arab Emirates in June.

“Our goal is to educate and ensure the safety of drivers across the Gulf by guiding them through a simple process of tyre selection and maintenance,” said Mr. Kakara. “Well maintained and fit-for-purpose tyres are an integral part of safe driving. With Bridgestone’s advanced tyre safety, coupled with knowledge of correct tyre pressure and treads, drivers and their families can travel in confidence, save money, and help protect the planet.”

 

U.S. COMPANIES IN CHINA THRIVING DESPITE A CHALLENGING BUSINESS CLIMATE

Despite challenging market conditions and an increasingly competitive business environment, U.S. companies in China closed out 2010 with all-time performance highs, and remain optimistic about their business prospects moving toward. This is according to the "2010-2011 China Business Report" released today (Jan. 19) by The American Chamber of Commerce in Shanghai (AmCham Shanghai). AmCham Shanghai's survey of business performance in China shows U.S. companies' revenue, profitability and market share shot up in 2010, following what had been an uneven period of growth between 2008 and 2009 because of the global economic downturn. Although showing impressive financial results, U.S. companies report that China remains a challenging business environment for a host of reasons.

Finding enough qualified staff is the No. 1 business challenge, and competition is picking up, not only between U.S. and other foreign companies, but between U.S. and Chinese companies.

 (The American Chamber of Commerce in Shanghai - Shanghai, China - Jan. 19)

 

JK Tyre Announces 2-4% Price Hike

Created: January 19, 2011 04:12:00 PM

Indian manufacturer, JK Tyre has decided to raise its prices by between two and four per cent on the back of raw materials prices going “up to an all time high, touching Rs 210 or even Rs 220 per kg of natural rubber,” the company’s marketing director AS Mehta told newspaper The Economic Times.

Mehta said rising natural rubber prices were absorbed in the fourth quarter of 2010, but the continued increases from 180 rupees at that point has made price hikes a necessity. “The current increase in rubber price is unbearable and we have decided to jack up the selling price of all types of tyres,” he concluded.

 

INDIAN TYRE MAKERS DEMAND DUTY-FREE NR IMPORTS

The Indian tyre industry has asked the government for a complete waiver of natural rubber (NR) import duty, Business-Standard.com reported. According to the Automotive Tyre Manufacturers Association (ATMA), NR prices are at Rs 220 a kg, and thus imports are uneconomical even at the low Customs duty of 7.5 percent. The global NR price is currently higher than the local one which makes imports at 7.5 percent duty unviable. ATMA Chairman Neeraj Kanwar said that besides record high prices, NR availability was not sufficient adding to the uncertainties faced by the industry in sourcing the commodity to meet the growing demand for tyres. ATMA, therefore, asked the government to accede to its long-standing demand of permitting duty-free import of 200,000 tons of natural rubber over the next one year. ATMA also requested duty-free imports to the extent to fill the gap between domestic NR availability and consumption on a regular basis. The demand-supply gap is estimated to be about 200,000 tons in the next financial year (2011-12). 

 

"UK Suffering Pothole Epidemic" - etyres

Created: January 18, 2011 12:25:00 PM

etyres, the online tyre retailer, says it has been inundated with call-outs from vehicle owners who have had their tyres and wheels damaged in the latest pothole epidemic. And following weeks of severe winter weather, the state of British roads is continuing to deteriorate at a rapid rate forcing drivers to navigate their way round cracks and gaping holes.

Last year a survey by Continental Tyres claimed that more than three million motorists had been involved in accidents during the UK's Big Winter Freeze. The German tyremanufacturer discovered that one-in-ten motorists had pranged, scraped or crashed their cars as Britain shuddered through the coldest temperatures in 30 years. And following another bout of severe winter weather, coupled with badly damaged roads, this year the figure could rise even higher, according to etyres.

Now etyres is urging motorists to be extra vigilant regarding their tyres, especially after driving over a pothole. Tony Bowman, the company's managing director, said: "The bad weather has turned our roads into potential minefields. Since the start of the new year, we have had hundreds of calls from customers whose tyres have been damaged by potholes.

"Sometimes the damage is immediately apparent and a vehicle should not be driven with a burst or punctured tyre. In this case it is advisable to replace the damaged tyre with the spare so that you can get home safely without causing any more damage to the vehicle.

"However, in other cases, the damage is less obvious, it can cause a slow puncture or a bulge in the rubber. If the tyre isn't repaired or replaced it could lead to a potentially dangerous blow out at high speed." Some motorists are lowering the pressure in their tyres to cushion the jolt from the pothole impact. However, Mr Bowman warned: "This is a mistake and is not recommended. Well maintained tyres will help to minimise the risk of damage from potholes and a correctly inflated tyre will always offer more protection to a wheel than an over or under-inflated one."

 

PIRELLI AT ABU DHABI TO TEST F1 TYRES IN WET AT NIGHT

Pirelli, the official tyre supplier to Formula One for the next three years, got the 2011 season underway in the United Arab Emirates with an unprecedented test - conducted at night and on an artificially wet track to recreate the conditions experienced in a typical rainy grand prix.

For the first time in the history of Formula One, the 5.55-kilometer Yas Marina track was coated in water to create a unique 12-hour night test. Paul Hembery, Pirelli Formula One team director, said: "This is a unique opportunity to witness a Formula One test car on track at night in the wet and on hot tarmac, in an entirely floodlit setting. We decided to do it this way because we want to challenge our rain tyres with the most difficult and demanding of all situations." Coming up next is the official test in Valencia Feb. 1-4. The 12 Formula One teams will then move to Jerez from Feb. 10-13, and end the testing in Barcelona from Feb. 18-21. The 2011 Formula One season will begin at the Bahrain Gran Prix on March 13.

 (Pirelli - Abu Dhabi, UAE - Jan. 18)

 

MORE ON PIRELLI F1 TESTING IN ABU DHABI

Spanish driver Pedro de la Rosa spent four days at the wheel of the Toyota TF109 that has been used to test Pirelli Formula One tyres since August: two days to run through the entire range of P Zero dry tyres and two nights during which he tested the wet and intermediate tyres. The first wet session was aimed at selecting the wet tyre that will be used by Pirelli during the coming season. Mr. De la Rosa completed 13 runs and 119 laps, totaling 372 kilometres on the dampened 3.1-kilometre north loop of the Yas Marina circuit. He completed similar distance during the second night, but this time focused on testing the intermediate tyre and determining the crossover point, during which it is necessary to make the switch from full wets to intermediates and vice versa. Throughout the two days of dry running in Abu Dhabi, Pirelli completed 1,400 kilometres, going through all four compounds in the dry-tyre range, from supersoft to hard. In total, Pirelli completed more than 2,000 kilometres in Abu Dhabi, more than 20,000 kilometres since testing began in August.

 (Pirelli - Abu Dhabi, UAE - Jan. 18)

 

Bridgestone Integrates American Consumer Tyre Management Structure

Created: January 18, 2011 07:55:00 AM

A number of changes have been made to the Consumer Tire business management structure at Bridgestone Americas Tire Operations (BATO), making it more akin to the structure already in place at the tyre maker’s commercial tyre business. In announcing the restructuring, Bridgestone Americas refers to the new management model as “fully integrated” and one that will “facilitate continued growth and make the business even more customer-focused.”

The changes centre upon a consolidation of the reporting structure of the company’s OE, replacement/wholesale and retail consumer tyre businesses in the US and Canada as well as Credit First NA (the company’s private label credit card business). By consolidating the management reporting structure, Bridgestone Americas intends to ensure “a consistent strategic direction in this dynamic market” and make certain that each aspect of the Consumer Tire business operates in a collaborative manner that enhances the company’s business and strengthens its relationships with customers and consumers.

Along with outlining its restructuring plans, BATO has announced the new leadership team heading up the integrated consumer tyre business. All appointments are effective immediately:

Larry Magee, currently chairman, CEO and president of Bridgestone Retail Operations, LLC (BSRO), has been promoted to the position of president, Consumer Tire US & Canada, BATO; John Baratta has been promoted to vice president, Consumer Tire US & Canada, BATO, a title he will hold concurrently with his position as president, Replacement Tire Sales, US & Canada Consumer Tire Sales Division. Baratta will report directly to Magee. In his new role, Magee, with the support of Baratta, will be responsible for the strategic direction of BATO’s Consumer Tire Business and the continued enhancement of the company’s relationships with its customers and consumers. Baratta will focus on Consumer Tire sales operations with an emphasis on the dealer and corporate account channels. His experience, notes Bridgestone, will also be invaluable in assisting Magee and the team to further strengthen the OE, retail and CFNA businesses while continuing to grow the Bridgestone and Firestone brands.

“Larry and John are both very talented executives with a wealth of experience in the tyre business, and they each have a keen understanding of what it takes to be successful,” said Eduardo Minardi, Chairman, CEO and president of BATO and chief operating officer of parent company Bridgestone Americas. “I’m confident that our Consumer Tire Business is in very capable hands and that under their leadership we will continue to grow our business, serve the needs of our customers, and fulfil our brand promise to provide products and services that meet or exceed consumers’ expectations.”

The following senior management team leaders will also report to Magee:

Mike Martini, president, Original Equipment Tire Sales, US & Canada Consumer Tire Sales Division, BATO, and his team will continue to execute the company’s original equipment strategy. Under Martini’s leadership, BATO’s consumer OE division will continue to focus on securing prestigious fitments for the Bridgestone and Firestone brands while at the same time continuing to enhance brand reputation and drive increased demand for premium brand products in the replacement and store channels.

Matt Hoskins, currently chief operating officer, BSRO, has been promoted to president, BSRO. In his new role, Hoskins will be responsible for the consumer Retail businesses, which include more than 2,100 Firestone Complete Auto Care, Tires Plus, Wheel Works and ExpertTire brand outlets located across the United States. “Matt has experience in every facet of our Retail business, and with his strategic vision and strong customer focus I know he will build on our Retail success and continue to grow the business,” said Minardi.

Dean Miller, president, CFNA, will continue to lead BSRO’s private label credit card business. Miller has more than 30 years of experience in all facets of the credit card business and will be responsible for strengthening this important segment of the business.

 

Bridgestone Australia Extends Helping Hand to Flood Victims

Created: January 18, 2011 09:14:00 AM

In response to flooding that has affected an area large enough to swallow up a good-sized European country, Bridgestone Australia Ltd has announced a donation of AU$100,000 (₤62,000) to the Queensland Premier's Flood Relief Appeal. In addition, the company will also be holding the Bridgestone Flood Appeal across its retail network from Friday, January 21, where participating Bridgestone stores will conduct fundraising activities.

Group chairman and managing director Nobuyuki Mieno said Bridgestone had been "shocked and saddened" by the toll taken by the floods. "The tragic loss of so many lives is particularly devastating," he stated. "Bridgestone Australia and New Zealand would like to extend our heartfelt condolences to family and friends who have lost loved ones and sincere appreciation to all the emergency services personnel who have assisted during this disaster."

Mieno said Bridgestone would also provide support packages to Bridgestone outlets affected by the floods. "We have had a number of stores across the eastern states that have been directly impacted, with some businesses completely inundated by the floodwaters," he said. "We will be doing everything we can to work with those affected to get their stores up and running as soon as possible."

The Bridgestone Flood Appeal will run until February 4, with participating stores collecting donations and holding a variety of fundraising activities in support of flood relief efforts.

 

Mytyres Unburdens Itself on Van Overloading

Created: January 17, 2011 08:21:00 AM

Commenting on the results of a recent Vehicle and Operator Service Agency’s (VOSA) Effectiveness Report, mytyres.co.uk says Britain’s van drivers have an “unenviable record” when it comes to overloading. The online retailer, part of the Delticom family of internet portals, adds that the impact of such behaviour upon tyres – which it adds are also often under-inflated – can be reduced operating life and a possible blow out.

Tyres carrying excessive loads, mytyres.co.uk explains, cause increased heat build up and this adversely affects their grip and handling characteristics. Should the tyre fail during transit the results could be fatal. “Running tyres above their recommended load capacity also dramatically increases tread wear and in-turn reduces their operating lifecycle”, commented a mytres spokesperson. “This means operators will be forced to replace tyres more often adding significantly to operational costs. Overloaded tyres compromise a vehicle’s handling characteristics resulting in longer stopping distances and a loss of steering. Aside from that, the risk of a tyre failure is significant when overloaded, which can endanger the driver’s and other road users’ lives.”

Another aspect of overloading, the spokesperson added, is its illegality: “Drivers face criminal prosecution if found guilty of transporting excessive loads, which could mean hefty fines or regulatory action for the business if the vehicle is part of a bigger fleet. Mytyres.co.uk stocks a wide-range of tyres to suit any budget and van owners can compare tyre brands, prices and load ratings quickly and conveniently.”

 

Porsche mulls North America, China production

Paul McVeigh - Automotive News Europe -- January 17, 2011 09:09 CET

Porsche may launch production in North America and China as part of a plan to double annual global sales to 200,000 units, CEO Matthias Mueller said.

Mueller said the sports car maker's current German assembly plants in Zuffenhausen, near Stuttgart, and Leipzig, were too small for the brand to reach its ambitious goals.

"We will consider this year whether to start production in Asia or North America," Mueller told the German magazine Focus in an interview published Monday.

Porsche could build its forthcoming Cajun SUV in China in a Volkswagen factory that builds the closely related Audi Q5, the magazine said.

In a separate interview with WirtschaftsWoche magazine, also published Monday, Mueller said building Porsches in North America and China would not break a taboo, since the car maker had in the past outsourced Boxster production to Valmet contract manufacturers in Finland. "We are OK as long as we can say our cars are 'engineered by Porsche,'" he told the magazine.

U.S. key to growth
Mueller said Porsche sales in the United States, the brand's most important market, have recovered to their pre-crisis level of 2007 and the U.S. market is important to achieving the growth target.

Porsche is being intergrated into Volkswagen as the VW group's 10th brand. VW CEO Martin Winterkorn had set the brand a target of selling 150,000 models a year.

Mueller said he thought the number may be too small. With new models such as the Cajun, which is due in 2013, as well as a possible "baby Porsche" roadster and a targa version of the Cayman, he sees an annual sales potential of 200,000 for the brand by 2018.

Mueller said Porsche would use the former Karmann factory in Osnabrueck, Germany, as an extra production site to build Boxster and Cayman cars. VW took over the Karmann plant on Jan. 1.

More China dealers
In China, Porsche plans to open a customer center and test track in Shanghai near a Formula One race track, Mueller told WirtschaftsWoche. The brand will also expand its Chinese dealer network from 35 dealers to 85, then probably to 100, he said.

VW is merging Porsche into its brand portfolio after VW acquired 49.9 percent of Porsche Automobil Holding SE's carmaking unit when Porsche last year failed in a hostile takeover attempt for VW.

 

BATO ANNOUNCES NEW CONSUMER TIRE STRUCTURE, APPOINTS LEADERSHIP TEAM

Bridgestone Americas Tire Operations (BATO) announced today (Jan. 17) a new, fully integrated management structure for its consumer tire business in the U.S. and Canada. Effective immediately, the reporting structure of the original equipment, replacement/wholesale, and retail consumer tire business, as well as Credit First, NA (private label credit card business) (CFNA) is consolidated. Larry Magee and John Baratta will lead the consumer tire business. Mr. Magee, currently chairman, CEO and president of Bridgestone Retail Operations, has been promoted to president, Consumer Tire U.S. & Canada, BATO. Mr. Baratta has been promoted to vice president, Consumer Tire U.S. & Canada, BATO, a title he will hold concurrently with being president, Replacement Tire Sales, U.S. & Canada Consumer Tire Sales Division. Matt Hoskins, currently COO, Bridgestone Retail Operations (BSRO), has been promoted to president, BSRO.

 (Bridgestone Americas Tire Operations - Nashville, Tenn. - Jan. 17)

 

TOYO, CONTINENTAL, YOKOHAMA SETTLE CLAIMS RELATING TO PENDING LAWSUIT

Toyo Tire Holdings of Americas Inc., Continental Tire the Americas L.L.C. and Yokohama Corp. of America have reached an agreement, settling all claims relating to the case captioned "Toyo Tire Holdings of America Inc. v. Continental Tire of North America Inc. et al." The agreement dismisses the pending lawsuit and related arbitration, and dissolves the injunction entered by the District Court in California in 2010. Under terms of the settlement agreement, Toyo agreed to withdraw from the GTY Tire Co., a joint venture formed by the three parties in 1988. In addition, Continental and Yokohama, the continuing GTY joint venturers, agreed to produce a certain quantity of truck and bus radial (TBR) tires for Toyo at GTY's Mount Vernon, Ill. Facility. Toyo may purchase the TBRs from GTY monthly for approximately the next year.

 (Toyo Tire U.S.A. Corp. [www.toyotires.com] - Cypress, Calif. - Jan. 17)

 

RUBBER FUTURES CLIMB TO RECORD FOR FOURTH DAY ON SUPPLY CONCERN

Rubber advanced to a record for a fourth day, as rising demand, led by China, boosted speculation that global consumption will outpace supplies that have been curbed by persistent rain in producing nations, BusinessWeek.com reported, citing Bloomberg. The June contract gained as much as 1.3 percent to 460.4 yen per kilogram ($5,551 a metric ton) on the Tokyo Commodity Exchange, and settled at 458.3 yen. Rubber has advanced as much as 11 percent this month, extending the 50 percent rally in 2010. Rubber may extend its rally as the rains reduce supply, compounding a seasonal drop in output, while car sales boost demand. The price may advance to 500 yen per kilo in the first half, according to the median forecast of the four analysts and fund managers surveyed last week by Bloomberg News. The Thai cash price rallied to a record 169.30 baht ($5.54) per kilogram today (Jan. 17), as demand outpaced supply and some farmers in northwestern provinces stopped tapping.

 (BusinessWeek.com [Bloomberg] - Bangkok - Jan. 17)

 

CHINESE TIRE INDUSTRY FACES SURVIVAL TEST

Wildly-rising caoutchouc prices have made it hard for China's tire industry to survive, and seven tire giants gathered Thursday (Jan. 13) to discuss needed countermeasures, People's Daily Online reported, citing an Economic Information Daily report on Friday (Jan. 14). Rubber prices have risen more than 80 percent throughout the whole of 2010, according to the report. The enterprises lamented that profits were slashed 30 to 50 percent year-on-year, and the situation heads to worse in the first quarter of this year, with many already expecting loses. And with distributors having enlarged inventories by more than 50 percent, tire producers have to digest costs themselves, many of whom are planning on slashing production to a half. The seven firms also stated they would halt production for a half a month during the Spring Festival Holiday. The world consumes about 9 million tons of rubber a year; China consumes about one-third of that amount.

 (People's Daily Online [Economic Information Daily - Global Times] - China - Jan. 17)

 

VOLKSWAGEN TO INVEST US$13BLN IN CHINA DURING 2011-2015

BEIJING, Jan 18, 2011 (AsiaPulse via COMTEX) --

Volkswagen AG's two Chinese joint ventures Shanghai Volkswagen and FAW Volkswagen plan to invest a total of 10.6 billion euros (US$13.2 billion) in China over the next five years (2011-2015), to expand production facilities and conduct R&D on new products.

Volkswagen AG, Europe's largest automaker, said on Friday that it had sold 37 per cent more vehicles in the Chinese mainland and Hong Kong in 2010 compared to 2009.

With 1.92 million vehicles delivered to its customers last year, Volkswagen has performed beyond expectations in the past year, said the company in a statement.

The Chinese auto market achieved remarkable growth in 2010, and the robust growth trend is expected to continue over the next few years, despite that the market is likely to cool a bit this year, noted Karl-Thomas Neumann, president and chief executive of Volkswagen Group China, which operates the joint ventures with the Chinese state auto groups SAIC Motor (SSEL:600104) and the FAW Group.

 

EU PASSENGER-CAR REGISTRATIONS DOWN 5.5% IN 2010

The EU market for new passenger cars in 2010 declined by 5.5 percent, with a total of 13,360,599 new units registered throughout the year, according to the European Automobile Manufacturers' Association (ACEA). The 2010 results were marked by the ending of government fleet renewal schemes in many EU countries. Registrations in December amounted to 1,009,638 units, down 3.2 percent. From January to December 2010, the situation varied across the major markets. Where Spain and the U.K. saw new car registrations increase by 3.1 percent and 1.8 percent, respectively, Germany record a 23.4-percent decline. The Italian (-9.2%) and the French (-2.2%) markets also contracted. The biggest increase was observed in Ireland where the market grew by 54.7 percent after the sharp 62.1-percent drop in 2009. Bulgaria recorded the steepest downturn (-28.9%).

 (European Automobile Manufacturers' Association [www.acea.be] - Brussels, Belgium - Jan. 14)

 

Volvo aims to outpace U.S. market growth in 2011

Douglas A. Bolduc And Harald Hamprecht - Automotive News Europe -- January 17, 2011 06:01

dbolduc@crain.com

DETROIT -- Volvo wants to grow faster than the U.S. auto market in 2011 after missing out on last year's improvement in overall auto sales, its chief executive says.

"We are switching the mode from defense to offense," Stefan Jacoby, CEO of Volvo Car Corp., said in an interview last week at the Detroit auto show.

The United States is crucial to the Chinese-owned Swedish automaker. It was Volvo's top market last year, despite a 12 percent slide to 53,952 units. The decline was so severe that the United States was nearly passed by Sweden.

The overall U.S. market rose 11 percent last year to 11.6 million units, from a 27-year low of 10.4 million in 2009.

Jacoby said overall U.S. sales are predicted to grow by about 9 percent this year, and Volvo aims to top that.

He said one key to growth would be the redesigned S60 medium-premium sedan, which debuted last year.

Volvo also plans to spend more on advertising this year, Doug Speck, CEO of Volvo Cars of North America, said in a separate interview. Speck said spending in the first quarter alone will match what the company spent last year.

He said Volvo has the money to spend because new owner Zhejiang Geely Holding Group is investing in the brand. Geely took over Volvo from Ford Motor Co. last summer.

Volvo's overall target of 800,000 global sales by 2020 is very ambitious -- its best annual sales total was 458,323 in 2007 -- because it expects huge gains in China.

Jacoby, who said in October that Volvo may need as many as three plants in China, said Volvo will provide details on its plans later this quarter. c

 


TYRE MAKERS BUY INDONESIAN RUBBER AT RECORD PRICES

Major tyre makers purchased Indonesian rubber at record prices above $5 a kg for March shipment, while top consumer China was also in the market to stock up on fears that prices would rise further, Reuters.com reported. Bridgestone, Michelin and Goodyear bought SIR200 at $239.50 to $240 a pound ($5.28 to $5.29 a kg) for March delivery. There were no details on the amount.

 (Reuters.com - Indonesia - Jan. 14)

 

RUBBER MAY EXTEND RECORD RALLY AS RAIN LIMITS OUTPUT, HURTING BRIDGESTONE

Natural rubber, which has beaten other commodities this year, may extend a record rally, as rains cut supply, compounding a seasonal output drop, while surging auto sales boost demand, according to analysts and fund managers, Bloomberg.com reported. Futures reversed early losses to reach an all-time high in Tokyo. The commodity will "rally until the price reaches a point that will substantially weaken physical demand," said Tetsu Emori, a commodity fund manager at Astmax Co. in Tokyo, who correctly forecast in September a rally to a record. "It's hard to predict where that level is," Mr. Emori said. Futures peaked at 454.7 yen per kilogram ($5,505 per metric ton) on the Tokyo Commodity Exchange today (Jan.14), extending last year's 50-percent jump. The advance raises costs for tire makers, such as Bridgestone, and boosts inflation, as other commodities including grains and oil climb.

 (Bloomberg.com - Tokyo - Jan. 14)

 

KWIK-FIT SEES RECORD NUMBERS OF FLEETS IN FOR VEHICLE MECHANICAL WORK

Fleet demand for company car and van mechanical work undertaken at Kwik-Fit is soaring, as organizations look to reduce operating costs, the Hertfordshire-based company said. In 2011, increasing the volume of mechanical and MoT fleet work through Kwik-Fit centers is a core goal of the company following a record-breaking 2010, it said. Kwik-Fit Fleet saw demand for MoTs, vehicle servicing and brake part replacement accelerate by up to almost 50 percent last year. End-of-the-year data from the U.K.'s largest independent fast-fit company reveals that in 2010: the number of fleet vehicle MoT tests undertaken was 35,666, up 50 percent from the 2009 total of 23,927; the number of brake-related jobs on fleet vehicles was 59,248, up from 53,840 in 2009; and the number of services on company cars and vans was up by 16 percent from 2009. Kwik-Fit operates from nearly 1,800 service points across Europe, and includes Kwik-Fit Netherlands and Speedy in France, as well as the U.K. operation.

 (Kwik-Fit Fleet [www.kwik-fit.com] - Hertfordshire - Jan. 12)

 

Fleet MoTs, Servicing Kwik-Fit Growth Areas in 2010

Created: January 12, 2011 11:41:00 AM

Demand from fleet customers for mechanical work on company cars and vans at Kwik-Fit is said to be soaring. The fast fitter comments that operators are looking to reduce operating costs and this appears to be a significant contributor towards Kwik-Fit’s record breaking 2010. The company reports that demand for MoTs, vehicle servicing and brake part replacement rose by up to almost 50 per cent last year, and in 2011 a “core goal” is to further increase the volume of mechanical and MoT fleet work performed through Kwik-Fit centres.

End of year data from the UK’s largest independent fast-fit company shows the number of fleet vehicle MoT tests undertaken in 2010 increasing 49.1 per cent to 35,666, the number of break related jobs on fleet vehicles growing ten per cent to 59,248 and a 16 per cent year-on-year increase in the number of company cars and vans serviced. These fleet customers, the company notes, include “virtually all of the UK’s top 50 contract hire and leasing companies as defined by the ‘FN50’ compiled by industry publication Fleet News.”

The majority of Kwik-Fit’s fleet business relates to tyre repair and replacement, but the company states it is leveraging long-established business relationships following the launch of mechanical work at its 669 centres in recent years. This is particularly manifesting itself in the increase in the volume of MoTs and services being undertaken at centres, comments Kwik-Fit Fleet sales director Peter Lambert: “We continue to provide an excellent service to existing tyre customers. Approximately 95 per cent of Kwik-Fit Fleet turnover is from tyre business with contract hire and leasing companies and end-user fleets.

“Typically, existing fleet customers first look to Kwik-Fit to undertake MoTs on their vehicles. Following that experience they are then more than happy for our technicians to undertake more complex brake and servicing work,” Lambert added.

The company credits the increase in fleet mechanical work undertaken to a number of factors, including the company’s nationwide presence and customer-friendly opening hours, short waiting times when booking, national pricing agreements and prices that are on average 20 per cent lower than those charged by franchise dealers. Lengthening fleet replacement cycles in recent years has also played a role.

“Fleets want a fast, efficient and cost-effective service that is convenient for their company car and van drivers. That is exactly what Kwik-Fit Fleet is delivering,” Lambert continued. “As a result of our long-established reputation for high quality service delivery built on the repair and replacement of tyres, batteries and exhausts more organisation are turning to Kwik-Fit for vehicle-related mechanical work.”

As for the coming months, Kwik-Fit Fleet is confident its rollout of new initiatives intended to make fleet servicing and MoTs even more attractive will lead to a further increase in demand for all mechanical work.

 

LANXESS MAKES FIRST ACQUISITION IN ARGENTINA

Lanxess is expanding its activities in Latin America. Its wholly-owned subsidiary Rhein Chemie has acquired Argentina-based Darmex S.A. - a leading manufacturer of release agents and curing bladders for the tire industry. Rhein Chemie will become one of the world's leading providers of release agents for rubber products. It will also acquire Darmex's bladder technology in Latin America, which is a key product hub for leading tire makers. Darmex's production sites are located near Brazil, one of the booming BRIC nations, in which Lanxess has significantly expanded its presence in the last few years. In the coming years, Rhein Chemie plans to expand its bladder production.

The release agents and bladders belonging to Darmex will be branded under Rhein Chemie product names. The demand for release agents and bladders is expected to expand in parallel to global tire production, which is expected to grow on average by about 5 percent per year in the next 10 years, Lanxess said.

(Lanxess AG - Leverkusen, Germany; Mannheim, Buenos Aires - Jan. 12)

 

Basque Award Acknowledges Bridgestone Contribution to Region

Created: January 11, 2011 03:33:00 PM

Bridgestone has received the 2010 ‘Euskal Makila’ award from the government of Spain’s Basque Autonomous Community in recognition of the company’s long-term contribution to the region’s economy. The award was presented to Bridgestone Spain chief financial officer Joseba Luzarraga by Carlos Aguirre, minister of Economy and Finance for the Basque government, in the presence of Kepa Hernández, manager of Bridgestone’s Bilbao plant and Jesús Blanco, the company’s director of Human Resources, at a gala ceremony in Bilbao.

The Euskal Makila award recognises foreign companies and individuals that make a sustained contribution to the Basque economy. In deciding a recipient for the 2010 award, the jury took into account that Bridgestone is one of the longest-standing multinational companies in the region. It also underlined Bridgestone’s contribution to the growth of local industry, helping to establish the Basque area as a key player in the national and European automotive industry.

Bridgestone has been in the Basque region for almost 80 years and operates a truck and bus tyre manufacturing plant in Bilbao and a textile facility in Usánsolo, employing more than 1,000 workers. “When the ‘Makila’ baton is given to a foreigner, it is a sign of respect,” stated Mr. Blanco at the ceremony. “Bridgestone is honoured to receive this token of respect from the Basque government.”

 

Pirelli's to Focus on F1 at Autosport

Created: January 11, 2011 04:01:00 PM

Pirelli has announce plans to promote its recent return to Formula One (F1) sponsorship with an Autosport International stand showcasing the Italian tyre manufacturer’s historic and future involvement in Formula One. According to the company, fans will be “thrilled by the two tier stand, which alongside F1 engineering masterpieces, will be displaying a host of other attractions and activities including a GT Cup car and the Pirelli simulator.” British Rally Championship Star Driver Elfyn Evans will also be in attendance with his rally car for the 2011 season, alongside the world famous Pirelli girls.

Paul Hembery, global motorsport director at Pirelli, said each year the Pirelli offering at Autosport International continues to grow, and this year is no exception with the company’s recent three year deal to supply tyres to F1 reflected in the increased size of Pirelli’s stand:

“At the heart of our business is the research and development that enables us to continue to produce tyres which perform to the highest possible standards in the most testing of conditions. Being involved once more in F1 will test our tyres to their limits giving us useful data enabling us to analyse performance and build what we learn into our next generation of road tyres.”

Autosport International 2011, the racing car show, takes place at the NEC in Birmingham between 13 – 16 January.

 

ASIA SYNTHETIC RUBBER PRODUCERS HIKE PRICES ON SUPPLY CONCERNS

Two major Asian synthetic rubber producers' upcoming plant shutdowns have spurred suppliers to increase prices by $200-300/ton (154-231 euros/ton) this week, industry sources said today (Jan. 11), ICIS.com reports. South Korea's LG Chem would shut down all its synthetic rubber units at Daesan I n mid-March for maintenance, said a company source. The producer will take its 135,000 ton/year styrene butadiene rubber (SBR) and 55,000 ton/year nitrile rubber (NBR) plants off line for three weeks, while its 100,000 ton/year butadiene rubber (BR) plant will be shut down for four weeks, the source added. Taiwan's TSRC Corp. would later begin a month-long turnaround at its 100,000 ton/year SBR plant at Kaohsiung, Taiwan, in April. Market players told ICIS the prices for SBR and BR have been under upward pressure since Q4 2010 because of tight supply.

 (ICIS.com - Singapore - Jan. 11)

 

CLIMBING NATURAL RUBBER PRICE INCREASES GLOBAL BUTADIENE DEMAND 

Climbing natural rubber prices, and the resulting increase in synthetic rubber, is putting a squeeze on the global butadiene market, sources said during the past week, Platts.com reported. The issue begins in Asia, a U.S. source said last week, but spreads into Europe - where SBR producers are clamoring for butadiene - and then trickles down to the U.S. market, where buyers are not seeing enough imports from Europe. "Basically, you have demand for SBR in Asia," the source said. "But, it's cheaper to make the SBR in Europe and then ship it. Much cheaper than just shipping butadiene. So, the U.S. is sitting around, waiting for any excess there might be in Europe. And that material might make its way to the U.S." In Malaysia, the rubber market has been climbing to its highest level since 1972. Natural SMR20 prices were at $5.17/kg on Friday (Jan. 7) against $4.97/kg on Jan. 4 due to the rainy season affecting production.

 (Platts.com - Houston, Tex. - Jan. 10)

 

POTENZA S001 TYRE TO BE EQUIPPED ON THE LEXUS LFA

Bridgestone announced today (Jan. 7) that it has begun supplying POTENZA S001 tyres (265 35ZR20 (95Y) and 305/30ZR20 (99Y)) to be equipped on the Lexus LFA, in Japan, the United States and Europe. POTENZA S001 tyres combine solid handling under both wet and dry conditions with a high level of comfort. Since the launch in 1979 of the first POTENZA tyre, the premium POTENZA brand has earned high praise from a variety of customers, especially drivers of high performance cars and motorsports enthusiasts. The Lexus LFA is a new flagship in the F series performance lineup. This Lexus vehicle combines ultra- responsive performance and refined styling to open up a new world of driving emotion, exhilarating the senses to move the driver in more ways than one. With its precise handling, the LFA makes the driver feel as though they are one with the car, which gives the driver a sense of reassurance. The performance, superb chassis design and meticulous aerodynamics of the Lexus LFA only deepens the emotional satisfaction of the Lexus experience

 (The Smithers Report - Jan. 7)

 

BRIDGESTONE EUROPE INCREASING PRICES 6% IN Q1

Bridgestone Europe has announced that it will increase prices on all consumer, commercial and specialty tyres and retreads starting this month and rolling out across all Europe throughout Q1 2011. Prices will increase by an average of 6 percent, but with some variances between markets and product categories. Commenting on the announcement, Makio Ohashi, CEO and president of Bridgestone Europe, stated, "The cost of raw materials, especially natural rubber, has reached a much higher level than it was four months ago, when we announced the last price increase. As I indicated at that time, a further price increase has become necessary to try and recover some of those costs…we have not seen an end to the escalation of raw materials prices," he concluded.

(The Smithers Report- Jan. 10)

 

Escalating Raw Material Cost Prompts Further Bridgestone Price Adjustment

Created: January 11, 2011 07:23:00 AM

During the first quarter of 2011, Bridgestone will implement price increases on all consumer, commercial, retreaded and specialty tyres sold in Europe. Prices will rise by an average of six per cent, however this will vary between markets and product categories.

Commenting on the announcement, Bridgestone Europe CEO and president Makio Ohashi stated “the cost of raw materials, especially natural rubber, has reached a much higher level than it was four months ago when we announced the last price increase. As I indicated at that time, a further price increase has become necessary to try and recover some of those costs. Our factories continue to operate at maximum capacity with improvements in productivity, flexibility, and efficiency to cope with the challenges including the high cost of raw materials and increased demand for our quality products. However, we have not seen an end to the escalation of raw materials prices.”

 

UK Car Registration Grew 1.8% in 2010

Created: January 07, 2011 01:16:00 PM

The UK car market reported full-year growth at the end of 2010, but with registrations down nearly a fifth in the last weeks of the year analysts are predicting a 5 per cent decline in 2011. The latest UK automotive registration figures issued by the SMTT show that the market grew by 35,847 units to 2,030,846 units in 2010 ending 1.8 per cent up on 2009 figures. However, with registrations falling 18 per cent in December (123,817 units for the month), the SMMT predicts registrations will decline 5 per cent in 2011 to 1.93 million units due to continuing tough market conditions. Put into long-term context, 2010’s registration figure is the second lowest in the past decade and almost 375,000 units short of the 2007 levels.

While the full-year figures tell a tale of modest growth, volumes were actually up 19.9 per cent in the first half of the year, but fell 13.8 per cent in the second half when the scrappage scheme came to an end in March. According to the SMMT, over 100,000 cars were registered through the scheme in 2010, around 5 per cent of the total market.

The company car part of the market was one area of consistent growth last year. During 2010 the fleet market rose by over 10 per cent in 2010, but private volumes are said to have slipped following the end of the Scrappage Incentive Scheme (SIS). Unlike the wider market business demand rose off the back of a 42.8 per cent rise in demand in December. Looking forward fleet volumes are expected to sustain the market in 2011 in contrast to falling consumer demand.

Diesel penetration also rose to a record 46.1 per cent at least partly due to the growth in sales of MPV and dual purpose (SUV) vehicles, which commonly run on diesel.
 
The Ford Fiesta was the best selling new car for a second successive year in 2010 and Ford was again the bestselling brand, whilst in December Vauxhall was the top brand and the Astra was the best selling model.

“Economic conditions remain extremely challenging, but industry expects demand to strengthen in the second half of the year. Competition in the retail sector will intensify as the industry seeks to re-balance demand across its new and used car and service and repair business. UK motor manufacturing recovered particularly well in 2010 and the outlook is for further steady growth this year,” said Paul Everitt, SMMT chief executive.

 

Analysts: UK Tyre Industry Will be Fragmented in 2011

Created: January 07, 2011 03:46:00 PM

New research by analysts at Plimsoll suggests the UK tyre market is polarised between “those getting it right and those struggling to recover.” David Pattison, senior analyst and author of the 2011 Plimsoll Analysis explained: “Now that the storm is lifting we have been able to assess the damage left behind. 38 companies are in parlous state and starting the New Year clinging on for dear life. We have rated them as Danger accordingly. Falling demand was the final nail in the coffin for many. The mistake they made though was to not make those painful cuts early enough to protect their business”.

So what do these contrasting fortunes mean for the UK tyre industry? Firstly getting back to growth will be paramount. According to Plimsoll, companies need to look to beat the current average profit margin of 2 per cent if they are to cover costs and invest in other growth areas. Currently a group of 31 companies are said to be leading the way with growth of over 10 per cent.

Meanwhile the 38 companies Plimsoll rated as ‘danger’ are described as “simply not competitive in the current economic environment” with Pattison adding: “Even their attractiveness as an acquisition is diminishing as new growth areas look more exciting. Watch out for a wave of corporate failures among these companies in 2011.”

 Finally mergers and acquisitions are predicted to continue but the profile of companies involved is expected to shift: “There will still be distress sales this year as companies buy struggling competitors on the cheap. However, there will be a return of more strategic acquisitions as larger companies look to buy into growth areas in the market. The new Plimsoll Analysis has named 13 distressed companies that could be bought for a discount and a further 6 fast growing companies that are sure to attract the attention of the larger players in 2011.”

 

BMW sales rise 14.6% in 2010

China sales leap 86% to 168,000 units

Automotive News Europe -- January 10, 2011 15:15 CET

FRANKFURT (Bloomberg) – BMW AG sold 1,224,280 cars in 2010, a rise of 14.6% on 2009 figures. Sales of the newly introduced BMW 5 series helped boost sales as deliveries increased 22.6% year-on-year to 211,968 units in 2010.

The BMW Group, manufacturers of BMW, Mini and Rolls-Royce models delivered 141,358 vehicles last month, 14 percent more than a year earlier, the Munich-based company said today in a statement. That helped push full-year deliveries to 1.46 million, surpassing its target of 1.4 million.

BMW will debut the 6-Series convertible in Detroit this week and the M1, the first high-performance version of the 1- Series compact. Mini will present the Paceman concept car, a coupe based on the Countryman SUV.

“2010 was a very successful year for us. We are “spot on” with our new models and are building the cars people desire. We advanced on all continents, in large and small countries alike and continued with a good sales balance between Europe, Asia, and the Americas,” said Ian Robertson, member of the board of management of BMW, responsible for Sales and Marketing, at the North American International Auto Show in Detroit.

“Looking ahead, we plan to remain the world's top selling premium automaker and expect sales to climb to over 1.5 million units in 2011 setting new record highs for the Group and its three brands,'' he added.

2 million sales by 2020

Growth in China and a rebound in the U.S. are propelling a recovery in luxury-car demand following the global recession. BMW, which is targeting 2 million sales by 2020, expanded its lineup with the X1 SUV late in 2009 and added the Mini Countryman in September.

The overhauled 5-Series was introduced in March. A total of 16,132 BMW and Mini vehicles were sold in China in December, a rise of 59% over 2009. 2010 sales rose to 168,000 units, a year-on-year rise of 86.7%.

BMW Group's Mini brand sold 234,175 units in 2010, a yearly rise of 8.1%. Deliveries were boosted in part by the success of the Mini Countryman SUV launched in September, which sold 14,337 units. The U.S. remains the Mini's biggest market with sales of 45,664 units sold in 2010.

BMW is expanding to defend its lead over Daimler AG's Mercedes-Benz and Volkswagen AG's Audi, which aims to topple BMW as the luxury leader by 2015.

 

GM plans European profit this year, CFO says

January 11, 2011 06:01 CET

DETROIT (Reuters) -- General Motors Co. hopes to achieve profitability in its European operations this year, addressing one of the problems that was not resolved by its 2009 restructuring in bankruptcy, said Chris Liddell GM's chief financial officer.

"We're talking about achieving break-even this year, so that's a tough ask, but the internal plan is still to try to achieve profitability this year," Chris Liddell said at the Detroit auto show on Monday.

GM's European Opel/Vauxhall unit has been a challenge for the automaker and had ranked as one of the major investor concerns before GM's initial public offering in November.

GM dropped plans to spin off Opel in 2009 after rejecting a deal backed by Germany and dropped its request for European government aid to restructure the unit in June.

The unit has lost $1.3 billion in the first three quarters of 2010.

Target for pension plan

Liddell also said the U.S. automaker hopes to hit a fully funded pension plan within three to five years.

"It's hard to tell, but we certainly would like to think within the next three to five years we can achieve the objective that we have, which is zero debt, minimal debt and a fully funded pension plan," he said.

Last month, GM made a $4 billion cash contribution to its U.S. pension plans, including $2.7 billion to a plan for its hourly workers and $1.3 billion for its salaried workers.

As of year-end 2009, GM's U.S. pension plans were underfunded by $17.1 billion. The company has said it will update those figures in its 2010 annual filing to U.S. securities regulators.

Liddell declined to provide any sales or profit forecasts.

 

Fiat Chairman: Alfa Romeo is not for sale

Luca Ciferri - Automotive News Europe -- January 11, 2011 06:01 CET

Fiat will not sell its Alfa Romeo unit and plans to relaunch the brand in the United States in late 2012, top Fiat executives said.

“We would not sell Alfa even if we were offered tons of money,” Fiat Chairman John Elkann told reporters at the Detroit auto show on Monday.

Fiat and Chrysler CEO Sergio Marchionne said: “Alfa is part of Fiat's operational perimeter and we've already invested too much to get rid of it.”

Volkswagen AG is rumored to be pursuing Alfa Romeo. Ferdinand Piech, VW supervisory board chairman, said last March that VW is interested in Alfa, but in no hurry to buy it.

Marchionne confirmed that Alfa plans to return to the United States by the end of 2012. He said the midsized Giulia sedan most likely would be the first Alfa model sold here because it is based on a platform that meets U.S. safety standards.

“Our plan is to build the Giulia in the Mirafiori plant," in Turin, Italy, Marchionne said.

But if workers do not approve an agreement Fiat has reached with several of its Italian unions, Marchionne said “the car would be built in North America.”

Alfa models could be produced in Chrysler plants in Sterling Heights, Mich., or Brampton, Ontario, Marchionne said.

Alfa's Giulietta compact hatchback, based on Fiat's Compact architecture, will come to the United States when it is refreshed in 2014.

 

RUBBER PRICES HIT RECORD HIGH ON OVERSEAS RALLY

Natural rubber prices in India extended the previous session’s gains on Thursday to hit a new record high, tailing the rally in overseas markets spurred by a supply crunch, dealers and analysts said, reportwww.business-standard.com. Tokyo rubber futures rose for a second consecutive day to a new record on Thursday on a strong dollar and rising oil prices, dealers said. At 2:14 pm, the benchmark February contract on India’s National Multi-Commodity Exchange (NMCE) was up 0.1 per cent at Rs 22,185 ($490.8) a quintal, after rising to Rs 22,425, the highest level for the second-month contract. At Kottayam spot market in Kerala, the most traded RSS-4 rubber (ribbed smoked sheet) was trading at a record Rs 21,400 a quintal, breaching earlier high of Rs 21,200 struck on Wednesday.

(Reuters [www.business standard.com] - Mumbai , India – Jan. 07)

 

CHINA'S FUJIAN PROVINCE EXPORTS 32.85 MILLION TIRES JAN-NOV 2010

Southeast China's Fujian province exported a total of 32.85 million tires in the Jan-Nov 2010 period, up 27.6 percent year-on-year, according to China Chemical Industry News, citing sources from the province's Customs, TradingMarkets.com reported. The total value of the tires amounted to $460 million, up 34.8 percent over the corresponding period of 2009. The export price averaged $13.90 per unit, up 5.7 percent from a year earlier. Most of the tires were exported to the European Union (EU) and the U.S.

 (TradingMarkets.com [China Chemical Industry News] - Beijing - Jan. 7)

 

CHINA'S TIRE INDUSTRY HAS A NUMBER OF HOT POTATOES TO HANDLE

The recovery momentum of the global auto market has been waning since countries began to end their stimuli, TradingMarkets.com reported. Tire stockpiles in China have been forced up due to industrial overcapacity, which has been showing an alarming growth rate far outpacing the increase of output, while tire makers' profit margins have been squeezed by mounting natural rubber prices. Production costs of China's 42 tire makers have surged nearly 30 percent, while profits fell 20.6 percent. Customs suggests that the tire industry strictly comply with the regulations issued by the Ministry of Industry and Information Technology (MIIT) in October 2010, which imposed tight access requirements for tire makers to tame overheated investment. Also, the tire industry should make the best of its current production capacity and seek further consolidation through mergers and acquisitions. Meanwhile, tire makers are encouraged to strengthen innovation and reduce production costs by using new materials and other methods.

 (TradingMarkets.com - Beijing - Jan. 7)

 

SUPREME COURT QUASHES INDIA'S ANTI-DUMPING DUTY ORDER ON NYLON TYRE CORD

The Supreme Court on Saturday (Jan. 8) quashed the Indian government's decision to impose antidumping duty on imports of nylon tyre cord fabric (NTCF), mainly used in making tyres, saying that it was slapped without hearing the industry, DecanHerald.com reported. A bench set aside the order of the Commerce Ministry, observing that while fixing the duty over import of NTCF, the industry was not given a chance to represent its case. The apex court also set aside the order of the Customs, Excise and Service Tax Appellate Tribunal, which had confirmed the duty. The Supreme Court order came over the petitions filed by the Automotive Tyre Manufacturers Association (ATMA), along with its members. The Finance Ministry had imposed a provisional anti-dumping duty on NTCF from China in 2004. The duty ranged from $0.54 per kg to $0.81 per kg, with effect from July 26, 2004. The following year, on March 9, 2005, it passed the final duty. However, this was challenged by the tyre makers on the ground that they were not given a chance to be heard.

 (DecanHerald.com - New Delhi - Jan. 10)

 

Tata signs deal to sell 40,000 Jaguar and Land Rover cars in China
Automotive News Europe -- January 11, 2011 06:01 CET

LONDON (Reuters) -- Britain and China signed business deals worth around 2.6 billion pounds ($4 billion) on Monday that include increased sales of Jaguar Land Rover vehicles to China.

JLR, a unit of Indian group Tata Motors Ltd., has committed to sell 40,000 Jaguar and Land Rover vehicles, worth more than 1 billion pounds, in China in 2011.

The deals were signed during a visit to Britain by China's vice premier, Li Keqiang, widely tipped to become the next Chinese premier.

Billions of dollars of agreements were announced during Li's visits to Germany and Spain last week.

Joint sales venture

Jaguar Land Rover CEO Ralf Speth said the deal to sell more vehicles in China, the world's largest car market, "not only signals the acceleration of our growth plans but also reflects both the importance of the Chinese market to Jaguar Land Rover and our value to the UK economy."

JLR has three British manufacturing plants. Tata Motors said in October JLR was in talks with a Chinese automaker to establish a manufacturing and sales joint venture in China.

The British government, which hopes private-sector job creation will power economic recovery despite public-sector job cuts, said all the deals would safeguard 700 jobs in Britain.

 

Nexen Increases Prices in Europe

In addition to price rises in the US, as of January 1 Nexen has increased tyre prices in Europe. According to Nexen Tire Europe, prices for all product segments, including passenger car, 4x4 and light commercial vehicles, have gone up by at least nine per cent.

The company says it was compelled to take this inevitable measure as “in the previous few months raw material costs, above all for natural rubber, have skyrocketed.” The company notes that in addition to natural rubber, prices of all products necessary for tyre production have increased. 

 

PSA sold a record 3.6M units in 2010
Automotive News Europe -- January 6, 2011 13:23 CET

PARIS (Bloomberg) – PSA/Peugeot-Citroen SA sold a record 3.6 million vehicles last year and remains on course to meet its 2010 profitability target, CEO Philippe Varin said on Thursday.

PSA's sales rose about 13 percent from 3.19 million vehicles in 2009, even as the European market declined 5 percent, Varin said at a briefing in Paris.

Demand in the region will be stable in 2011, while the French market may shrink 10 percent after the withdrawal of scrapping incentives last month, Varin predicted. The Paris-based carmaker met its 1.5 billion-euro ($2 billion) operating profit target for 2010, he said.

Varin has pledged to reduce PSA's dependence on Europe, which accounted for 66 percent of sales in 2009. The company expects to reach agreement in the first quarter on a second Chinese joint venture announced with Changan Automobile Group Co., Varin said. Planning for a factory investment in India has also entered an “active phase,” he said last month.

PSA is open to other potential joint ventures elsewhere in the world, Varin added, without elaborating. The carmaker is building a factory with Mitsubishi Motors Corp. in Kaluga, Russia, even after talks on a capital tie-up foundered last year.

 

Bridgestone Remains Tight Lipped on Firestone IndyCar Plans

Created: January 06, 2011 07:43:00 AM

In light of rumours regarding Firestone’s departure from motorsport, Bridgestone Americas has released a statement explaining its position, yet the tyre maker’s official words clarify little. Speculation that Bridgestone will dump the IndyCar Series after the 2011 season has existed after it failed to renew its tyre supply contract before the December 31 deadline.

As part of its commitment to the growth and success of all its brands, Bridgestone Americas says all its sponsorship programmes “are continually under review as we search for the most effective ways to communicate our brand messages.” As to its plans for IndyCar, the tyre maker comments that due to the confidential nature of its business relationship with IndyCar and the Indianapolis Motor Speedway it is “not in a position to make any comment or respond to speculation regarding our motorsports partnerships.”

The Indianapolis Star newspaper reports IndyCar CEO Randy Bernard as saying he is “definitely concerned” about the situation. Bernard also told Speed.com that “Firestone is evaluating all their marketing assets right now but we’re currently in negotiations. We talked again today and I’m optimistic that we’re making progress.” As for word from Bridgestone, it is said to be keeping its lines of communication with the race series organiser open. “We'll leave it an open book,” said Al Speyer, executive vice president of motorsports for Bridgestone Americas, without making further comment.

The Firestone brand has been the exclusive and sole tyre for the IndyCar series since 2000.

 

HIGHER FUEL ECONOMY STANDARDS TAKE EFFECT FOR 2012 MODELS IN U.S.

The 2012 new car models are shipping already, led by the 2012 Ford Focus scheduled to arrive at dealerships this month, ConsumerReports.org reported. These are the first new cars that have to comply with new, stricter fuel-economy standards passed by the National Highway Traffic Safety Administration (NHTSA) in 2009. The changes are the first major increase in fuel-economy standards for cars since the requirements originally took effect in the 1970s. Auto makers are expected to adopt a wide range of technologies to meet the new targets, including direct injection, continuously variable transmissions, hybrid systems, and plug-in electric cars. The new standards require a new-car Corporate Average Fuel Economy (CAFÉ) of average 33.3 mpg this year and light trucks to average 25.4, for an overall average of 29.7 mpg. These standards are scheduled to ramp up all the way to 34.1 mpg overall by 2016.

 (ConsumerReports.org - Yonkers, N.Y. - Jan. 5)

 

TIA RESPONDS TO FTC CONSUMER ALERT ON AUTO WARRANTIES, AFTERMARKET PARTS

The Tire Industry Association (TIA) has responded to the Federal Trade Commission's (FTC) new consumer alert that says auto makers do not have the right to tie routine auto maintenance to warranties. "This was a clear victory for the aftermarket repair industry, and should go a long way towards improving communications with customers," the TIA said on its Web site. "The alert clearly emphasizes the Magnuson-Moss Warranty Act, which 'makes it illegal for companies to void your warranty or deny coverage under the warranty simply because you used an aftermarket part'," the TIA added.

Roy Littlefield, TIA executive vice president, said, "TIA will continue to push back against any infringement on our members in the aftermarket repair business by the vehicle manufacturers. It is a deliberate attempt to garner an unfair advantage, and we are grateful that the FTC has reacted to this apparent trend."

 (Tire Industry Association [www.tireindustry.org] - Bowie, Md. - Jan. 6)

 

HEAVY COMMERCIAL VEHICLE ORDERS TOP 25,000 FOR SECOND STRAIGHT MONTH

December preliminary net orders of heavy-duty Class 8 commercial vehicles for North American markets were 25,000 units, according to ACT Research Co. of Columbus, Ind. The December total is an increase of 115 percent, compared to December 2009. Preliminary net order numbers are typically accurate to within 5 percent plus or minus. "With nearly 71,000 orders booked, the fourth quarter was the best quarter for Class 8 vehicles since the second quarter of 2006," said Kenny Vieth, ACT president and senior analyst. "… production levels will increase significantly in 2011," he added.

 (Americas Commercial Transportation Research Co. L.L.C. 

 

US car sales expected to hit 13 million

06 January 2011 - ERJ staff report (AN)

Detroit, Michigan -- Auto makers Ford Motor Co. and General Motors Co. are forecasting light vehicle sales in the US will rise anywhere from 6 to 14 percent over 2010 sales, which finished the year up 11.5 percent over 2009.

Ford is forecasting 2011 light vehicle sales will rise to between 12.3 million and 13.3 million units, while GM sees sales rising to 12.8 million to 13.3 million in 2011. Sales in 2010 finished at 11.6 million units after a strong December.

“The incoming [economic] indicators are supporting ongoing improvements in consumer spending,” Ford Chief Economist Ellen Hughes-Cromwick said.

GM sales boss Don Johnson sees 2011 auto sales picking up the pace in the second half.

“We expect the extension of tax cuts and unemployment benefits will help propel consumer spending,” he said.

Auto makers sold 1.14 million units in December, up 11 percent from a year earlier, and eclipsing May’s 1.1 million as the best month in 2010. Sales momentum built gradually in 2010 after demand plunged to a 27-year low of 10.4 million in 2009.

Every auto group except Toyota Motor Sales posted gains in December, led by a 37-percent increase at Hyundai-Kia Automotive and a 28-percent advance at Nissan North America.

Ford replaced Toyota as the No. 2 US auto maker, while a big December by Nissan North America kept Hyundai-Kia Automotive from capturing the No. 6 spot. Ford’s move up was widely anticipated as Toyota’s massive safety recalls slammed sales and Ford has gained volume all year.

Ford 2010 group sales jumped 17 percent to 1.96 million units, while Toyota’s sales slipped 0.4 percent for the year to 1.76 million units.

GM remained the top-selling auto maker, up 7 percent to 2.2 million units. It joins No. 4 American Honda Motor Co.—also up 7 percent—as the major players to increase unit sales but lose market share by underperforming the industry.

Vehicles assembled in North America picked up 2.5 points of market share, finishing 2010 with 76.4 percent of the US light vehicle market. In 2009, North American-built vehicles held 73.9 percent of the market, but as the Detroit 3 rebound and overseas-based manufacturers shift production to combat a weak US dollar and rising foreign production costs, output is rising in North America.

In 2010, sales of Japan-built vehicles lost 1.7 points of share to 12.1 percent. Korean-built vehicle sales fell 0.7 point to 4.8 percent of the market as Hyundai and Kia factories in the US reached full capacity.

Ford’s F-series pickup is once again the best-selling US nameplate, finishing 2010 with sales of 528,349 units, up 28 percent over 2009.

 

ASIA BD SPOT PRICES MAY SURGE IN Q1 ON DEMAND

Asia butadiene (BD) prices may surge in the first quarter and rise above $2,300/ton (1,748 euros/ton) in March, as demand is expected to outstrip supply, industry sources said, ICIS.com reported. New downstream synthetic rubber plants in South Korea and China are expected to start up just when BD supply is likely to tighten with the onset of the cracker turnaround season in February and the closure of the

arbitrage window from Europe, traders said. Spot offers for January have already jumped to $2,150/ton CFR (cost and freight) northeast (NE) Asia, up $100/ton from the previous month. December BD spot prices were assessed at $2,040-2,070/ton CFR NE Asia by the close of business on Dec. 24, according to data from ICIS. The minimum spot offer for January shipment is $2,150/ton CFR NE Asia, and BD spot prices are expected to climb to $2,300-2,400/ton CFR in March as deep-sea BD supply from Europe has dried up and demand in Asia is expected to increase, just when supply tightens, a Korean trader said.

 (ICIS.com - Singapore - Jan. 6

 

Tyre Shortage? Fujian Province Exported Over 32.85 million Tyres in 2010

Created: January 06, 2011 02:00:00 PM

While wholesalers importing Chinese tyre products into mature European markets such as the UK struggle to negotiate supply issues and brace themselves for another round of price increases, there are reports that tyre makers in one part of the People’s Republic are over-producing to the extent that they are actually stockpiling tyres. Southeast China's Fujian province exported 32.85 million between January and November 2010, signalling a 27.6 per cent year-on-year increase in shipments, according to a report from the province's customs officials. The total value of the tyres sold is said to have amounted to US$460 million, a jump in value of 34.8 per cent over the corresponding period of 2009. The export price averaged $13.9 per unit, up 5.7 per cent from 2009.

To bring the issue into context, leading Asian tyre manufacturers such as Giti Tire and Cheng Shin Rubber (which produces the Maxxis brand) have significant manufacturing capacity in Fujian province. If the Fujian customs figures are right, the situation would seem to be something of a turnaround for Giti at least. In mid-December news reports suggested Giti Tire Corp had stated earlier in 2009 that its Fujian unit's sales would have been negatively affected by the US import tariff ruling – if their sales from the Fujian factory match the trend across the area, it would seem things went considerably better than expected. For its part Cheng Shin currently runs two factories there and announced plans for a third at the end of August 2010. And this suggests the tyre manufacturer believe Fujian has something to offer when it comes to tyre production.

According to the Fujian customs report, most of the tyres produced in 2010 were exported to the Europe Union and the US. However due to apparent industrial overcapacity, tyre stock piles have reportedly been mounting up. But that’s not to say that the Chinese tyre manufacturers responsible have been any more profitable. A quarter more tyres generating a third more income may sound alright for the manufacturers, but the situation is more complicated than that.

Exports up, but Chinese firms say input costs are squeezing profits

Tyre exports may be up but Chinese manufacturers report that raw material costs are squeezing profits hard. According to the customs data the production costs of China's tyre makers surged nearly 30 per cent during 2009, while profits fell 20.6 per cent.

According to one budget tyre manufacturer supplying tyres into the UK market, there are several reasons for the Chinese factories’ continued cost pressures. Of course there are the continuing issues of historically high raw material costs; extremely full production space; and infrastructure issues such as limited access to electricity from the Chinese government – all things the market is well versed in. However, there are also said to be a number of newer pressures in the personnel department, namely rising labour costs coupled with labour shortages.

Recently the Chinese government reportedly raised the minimum wage workers can earn by about 18 per cent. In addition to the fact that Chinese factories’ wage bills appear to be increasing there is the fact that the Chinese New Year holiday period regularly sees workers leave firms, return home and/or change employers. However, in the context of increased minimum wages Chinese human resource managers are expecting this effect to be more marked this year.

The likely result? Another round of price increases for those sourcing their tyres from China.

Helpfully, the Fujian province customs information quoted above advised that the Chinese tyre industry should “make the best of their current production capacity and seek further consolidation through mergers and acquisitions.” Meanwhile, tyremakers are encouraged to strengthen innovation and reduce their production costs by using new materials and other methods production. The leading players are clearly doing this, but if the unconfirmed reports of tyre stockpiling are anything to go by, not all Chinese manufacturers are shifting tyres as quickly as they would like to.

 

GUIZHOU TYRE TO RAISE 670 MLN YUAN THROUGH RIGHTS ISSUE

Guizhou Tyres plans to raise 670 million yuan ($101 million) through a rights issue of three shares for every 10 shares held at 6.86 yuan ($1.04) per share, Capitalvue.com reported, citing Shanghai Securities News and a company filing. The subscription period is Jan. 11-17. The company's parent, Guiyang State-owned Assets Investment Management, has committed to fully subscribe to the shares offered to it. All the funds raised will be used for technology upgrades to the company's production line, which has an annual capacity of 1.1 million units of high-performance all-steel radial tires. After the upgrading is completed, the company's all-steel radial production capacity will hit 4 million tires a year. The company's production capacity totaled 2.9 million units in 2009, contributing 56.62 percent of total revenue.

 (Capitalvue.com - China - Jan. 6)

 

Daimler, VW to sign China deals worth $5 billion, say sources
Automotive News Europe -- January 7, 2011 06:01 CET

BERLIN (Reuters) -- German carmakers Daimler AG and Volkswagen AG will sign deals totaling $5 billion at a meeting with China's Vice Premier Li Keqiang on Friday, government sources told Reuters on Thursday.

Daimler confirmed it would sign contracts with the Chinese government on Friday but declined to make any further comment. No one at VW was available for comment.

The contracts would formalize deals already agreed on the import of passenger cars to China, Daimler said.

Li, who is on a three-country European tour, said on Wednesday China wants to develop the untapped purchasing power of its domestic consumers and hopes Berlin will support the expansion of Chinese companies in Germany.

Li is due to meet with Chancellor Angela Merkel when they are expected to discuss expanding bilateral trade valued at roughly $140 billion last year, or nearly 30 percent of China's commerce with the EU.

 

Bridgestone UK Launches New Ecopia Tyre to its Truck Dealer Network

Created: January 05, 2011 05:08:00 PM

Bridgestone proudly launched its new Ecopia tyre to a selection of the company’s dealer network in November 2010. The event was reportedly held at Stapleford Park Hotel, where the dealers were introduced to the new eco-friendly tyre range that provides reduced costs for its fleets along with reducing their impact on the environment.

Roger Moulding, commercial marketing manager, opened the launch with an overview of Ecopia and how it fits into the Bridgestone tyre family. The Ecopia is the environmental efficiency-orientated long distance tyre for highway use, in R249 steer, M749 drive, and the new R109 trailer patterns. To further strengthen its environmental pedigree it is available both in new and retread.

With 20 – 50 per cent of fuel consumption is attributed to rolling resistance of the tyre. Ecopia’s NanoPro-Tech compound and casing construction are designed to reduce heat energy during rotation meaning lower rolling resistance and therefore lower fuel consumption.

According to company representatives, the launch was “received well” by the dealers. The Ecopia Line Up consists of steer tyres: R249 Ecopia and R249 EVO Ecopia, Drive tyres: M749 Ecopia and greatec M709 Ecopia and the trailer tyre R109 Ecopia.

Bridgestone will also be focusing on the life of the tyre and its total effect on the environment.  Therefore Ecopia will be available in M749 and R109 pre-cured retread patterns.

Bridgestone has set a target to reduce its total carbon emissions by 35 per cent and improve tyre rolling efficiency by 25 per cent on its Ecopia range by 2020. In order to meet its target Bridgestone will provide comprehensive maintenance to all Ecopia tyres alongside its current ranges via Total Tyre Management, which is delivered through The Truck Point Network.

 

New Northern European Zone Means Promotions for Bridgestone UK Executives

Created: January 05, 2011 12:42:00 PM

Bridgestone’s decision to introduce a new management structure in Europe has resulted in a number of promotions for executives at the company’s UK headquarters. John McNaught will become the North Region (UK, Denmark, Finland, Ireland and Sweden) managing director with Sam Enya as the North Region deputy managing director.

Enya will also become the North Region sales administration director, focusing on business administration, budgeting and reporting. The North Region countries have already been working together for a number of years but the result of the reorganisation is that the management of all activities has now been defined.

The promotions came into effect on 1 January 2011 and form part of a wider restructuring process which Bridgestone says it has undertaken to “adapt to market conditions and improve communications across the business in northern Europe.”

New directors for all sales and marketing divisions have also been announced. John Folliss will become the North Region commercial sales and marketing director with Andy Lane taking the position of North Region consumer sales and marketing director. Pat Curran becomes the North Region finance director and all Bridgestone’s human resources functions will be the responsibility of Paul Lawrie, who will become the North Region human resources director.

In addition, Ken Summers has been announced as the North Region technical manger, Alex Watson will become North Region retail director and David Gray becomes North Region retread director.

John McNaught, North Region managing director, commented: “These promotions will further strengthen the firm’s sales and marketing function and enable Bridgestone to react quickly to all opportunities that arise. We want to offer an excellent service to all customers while at the same time providing local dealers in each country with even better on-site support. Our aim is to further improve customer service and optimize the efficiency of internal processes.”

As Tyres & Accessories reported when the initial stages of the strategic adjustment were first announced in September 2010, the North Region countries will now form one region in the European branch of the global Bridgestone organisation.

The reorganisation also means significant changes are to be implemented in five other geographical regions, each with its own regional headquarters that will operate under the overall control of Bridgestone’s European headquarters in Brussels. Like the developments at the North Region, changes at the other five areas were scheduled for completion on 1 January 2011.

At the same time all this information was released senior management changes were scheduled to take effect at Bridgestone Europe on 1 October. Back then Yuji Takeuchi, chairman and former senior vice president of sales and marketing, and Yasuhiko Tanokashira both returned to positions in Japan. Meanwhile Mitsuhira (Mike) Shimazaki joined the Bridgestone Europe management group as senior vice president Business Operations.
 
Gerry Duffy, currently vice president sales and marketing for Europe transferred to the role of Bridgestone Germany managing director. Duffy replaced Benoit Raulin who transferred to Bridgestone’s European headquarters in Brussels as vice president of finance and procurement.

 

ECHA RECEIVES OVER 3 MILLION REACH CLASSIFICATION, LABELLING NOTIFICATIONS

By Monday (Jan. 3) the European Chemicals Agency (ECHA), charged with implementing REACH (Registration, Evaluation, Authorization of Chemicals) legislation, had received 3,114,835 notifications of 24,529 substances for the Classification and Labelling Inventory. By this deadline, industry had to notify the classification and labelling of all chemical substances that are hazardous or subject to registration under the REACH regulation and placed on the EU market. The Classification, Labelling and Packaging regulation relates to chemical substances and mixtures.

 (European Chemicals Agency [http://echa.europa.eu] - Helsinki - Jan. 5)

 

Toyota, Lexus Join TyreSafe

Created: January 04, 2011 01:33:00 PM

Toyota and Lexus became the latest vehicle manufacturers to join tyre safety organisation, TyreSafe, helping the group reach a dozen vehicle manufacturer members helping to raise standards of tyre care and maintenance through driver education and engagement. “It’s wonderful to receive the support and backing of two fantastic brands such as Toyota and Lexus,” comments Stuart Jackson, chairman of TyreSafe. “We have seen very positive results from the excellent contributions made by our other vehicle manufacturer members and we are looking forward to the two new members becoming equally involved.”

Toyota started highlighting the critical role that tyres play in driver safety with a trial winter weather tyre programme. The pilot scheme is targeting owners of some of Toyota’s most popular car and light commercial models, informing them about the added safety benefits of fitting winter tyres.

In addition to the winter tyre programme, Toyota and Lexus are running a series of activities throughout their 207 Toyota and 58 Lexus UK service and retail networks, reminding drivers about the importance of correct tyre care. The brands will also add tyre safety information to their websites and run educational features in their customer magazines.

“Despite the many innovations and technological advances that our engineers and design teams make, tyres remain one of the most critical elements affecting driver and occupant safety,” explains Steve Settle, director, Customer Services, Toyota & Lexus. “We hope that through our membership of TyreSafe more drivers will pay attention to the condition of their tyres, helping to save even more lives.”

 

Renault manager suspensions said to concern electric-car leaks

Wire Reports - Automotive News Europe -- January 6, 2011 06:01 CET

Renault SA has suspended three executives amid fears that its electric vehicles program may have been subject to industrial espionage.
The French automaker, which aims to become the first volume automaker to make electric vehicles available to the mass market, suspended a senior executive for long-term product development and two others suspected of leaking electric-car secrets, two people with knowledge of the matter told Bloomberg News.

Michel Balthazard, vice president for advance engineering and a member of the French automaker's management committee, was the highest ranking of three managers suspended without pay Jan. 3, the people said. They asked not to be identified because the disciplinary proceedings are confidential and incomplete.

The switchboard operator at Renault's headquarters said Balthazard no longer works for the company. E-mails sent to his corporate address bounced back undelivered.

Balthazard began his career at Renault in 1980, in the body engineering department. He was rose to become head of the company's D/E product range program and director of the New Laguna project, and was appointed vice president of pre-engineering, projects and requirements in 2006.

EV project bosses

Agence-France Presse said that the suspended executives had all headed electric vehicles projects.

Renault spokeswoman Caroline De Gezelle told Bloomberg News on Wednesday that a management committee member and two other managers were suspended without pay Jan. 3 on the recommendation of the automaker's compliance committee.

De Gezelle said: “The investigation was prompted by an ethics alert in August.” She declined to comment further on the alleged infringements or to identify the individuals.

A source close to the company told Reuters: "Renault is a victim in this story. The group is a bit worried about its electric vehicle program -- it hopes that its leadership in this technology won't be threatened."

Renault, with Japanese alliance partner Nissan Motor Co., is a fierce proponent of EV technology, with the companies jointly investing 4 billion euros ($5.3 billion) in their flagship EV programs.

Renault plans to build more than 200,000 EVs a year by 2015-2016. This year, the automaker will launch three EVs in Europe -- the Fluence sedan, Kangoo delivery van and the two-seat Twizy. Nissan currently is rolling out its Leaf electric hatchback globally.

 

Renault board to meet on strategy, sources say
Automotive News Europe -- January 6, 2011 06:01 CET

PARIS (Reuters) -- Sources close to Renault SA told Reuters on Wednesday that the company will discuss its new strategic plan and annual results at board meetings on Jan. 31 and Feb. 9.

"The two dates are in the diary," a source close to the company said. "I don't see how we could discuss the results without talking about the strategic plan, or talk about the plan without discussing the results."

A second source confirmed that board meetings would be held on the two dates.

Renault confirmed that a board meeting would take place on Jan. 31 but declined to say what was on the agenda and would not confirm the Feb. 9 meeting.

The French carmaker, whose alliance partner is Japan's Nissan Motor Co. is due to unveil the strategic plan on Feb. 10 when it publishes its full-year results.

EV focus

The plan is set to focus heavily on electric vehicles, in which Renault and Nissan are jointly investing 4 billion euros ($5.31 billion), as well as synergies between the partners and growth in emerging markets as car demand in Europe stagnates.

The company had to drop its previous strategic plan, which aimed for a 6 percent operating margin in 2009 after the crisis threw the automobile industry into turmoil from late 2008.

Renault Chief Executive Carlos Ghosn, who is also head of Nissan, has said the new plan for Renault would include "more realistic" targets and promised a detailed plan for the coming year with longer-term perspectives.

"The plan will be very number-focused for a given period but after there will be qualitative content to clearly indicate the direction we're taking," he said at October's Paris Auto Show.

 

Saab confident despite poor 2010 sales

Automotive News Europe -- January 6, 2011 07:31 CET

AMSTERDAM (Reuters) -- Money-losing Dutch car marker Spyker Cars NV said its Saab Automobile unit sold just under 31,700 cars over 2010, as it reported a 129 percent jump in fourth quarter sales of its premium Swedish brand.

Spyker, which bought Saab from General Motors Co. early last year, said Saab sold 11,448 cars in the fourth quarter, up 129 percent compared with the same period in 2009 and up 31 percent quarter-on-quarter.

Saab sold 31,696 cars globally in 2010. In October, Spyker cut Saab's 2010 sales target to 30,000 to 35,000 units, from 45,000 previously, because it had to rebuild its supplier base after the unit was bought by Spyker from GM in February.

Sales momentum increase

In a statement late on Wednesday, Spyker said production was severely disrupted at the start of the year, but Saab continued to see sales momentum increase quarter by quarter in several key markets.

"I am confident that we can keep up the current sales momentum as we continue to enhance our offering with the biggest ever product offensive in Saab Automobile's history," Saab CEO Jan Ake Jonsson said in a statement.

The company said it will continue to expand its distribution network in China and Russia and that it expects to see the full effects in 2011 of its entry last year into markets such as Japan, Canada, Portugal and Australia.

 

Bridgestone Remains Tight Lipped on Firestone IndyCar Plans

Created: January 06, 2011 07:43:00 AM

In light of rumours regarding Firestone’s departure from motorsport, Bridgestone Americas has released a statement explaining its position, yet the tyre maker’s official words clarify little. Speculation that Bridgestone will dump the IndyCar Series after the 2011 season has existed after it failed to renew its tyre supply contract before the December 31 deadline.

As part of its commitment to the growth and success of all its brands, Bridgestone Americas says all its sponsorship programmes “are continually under review as we search for the most effective ways to communicate our brand messages.” As to its plans for IndyCar, the tyre maker comments that due to the confidential nature of its business relationship with IndyCar and the Indianapolis Motor Speedway it is “not in a position to make any comment or respond to speculation regarding our motorsports partnerships.”

The Indianapolis Star newspaper reports IndyCar CEO Randy Bernard as saying he is “definitely concerned” about the situation. Bernard also told Speed.com that “Firestone is evaluating all their marketing assets right now but we’re currently in negotiations. We talked again today and I’m optimistic that we’re making progress.” As for word from Bridgestone, it is said to be keeping its lines of communication with the race series organiser open. “We'll leave it an open book,” said Al Speyer, executive vice president of motorsports for Bridgestone Americas, without making further comment.

The Firestone brand has been the exclusive and sole tyre for the IndyCar series since 2000.

 


INDIAN TYRE MAKERS BUY RUBBER AT RECORD $4.69 PER KG

Indian tyre makers bought natural rubber at a record 212 rupees ($4.69) per kg today (Jan. 5), as sellers raised prices after a surge in the international markets, head of a dealers body told Reuters. Tyre makers were struggling to secure required supplies as dealers were diverting stocks into warehouses and many farmers were also holding their stocks, expecting a further rise in prices, George Valy, president of the Indian Rubber Dealers Federation, said. "Everyday, farmers and dealers are quoting higher prices due to rising prices in international market. In Thailand rubber is more expensive than the local markets," Mr. Valy said. Spot rubber price in Thailand, the world's biggest producer and exporter of natural rubber, rose by $0.10 to $ 5.15 per kg. The stocks at accredited warehouses of National Multi-Commodity Exchange 

(NMCE) more than doubled in a month to 7,156 tonnes, data with the exchange showed.

 (Reuters - Mumbai, India - Jan. 5)

 

NR SUPPLY FALLING 6.3% IN Q4 2010 - ANRPC

Global supply of natural rubber (NR) is anticipated to fall 6.3 percent in the fourth quarter (October-December) 2010, according to revised estimates reported on Dec. 16 by the Association of Natural Rubber Producing Countries (ANRPC). Those member countries account for 92 percent of the commodity's global output. This further downward revision, from the previously expected 3.8-percent fall during the quarter, originates from Thailand (revised down from -28.4% to -33.4%), India (revised down from - 1.8% to -4.6%) and Vietnam (revised down from +3.8% to -2.8%). Consequent to this revision, this year's annually supply growth in the ANRPC region is likely to be slower at 5.7 percent rate than the previously expected 6.6 percent rate reported in November. The supply grew at 17.9 percent, 2.8 percent and 12.3 percent respective rates during the first three quarters.

 

Survey: 92% of Motorists Support Annual MOT Tests

Created: January 04, 2011 12:02:00 PM

An article in The Times dated 29 December under the heading “Pressure Grows Not To Tinker With The MOT”, featured the results of a nationwide survey of 4,200 drivers, commissioned by the MOT Forum and supported by NTDA and other members of the Forum, in which more nine tenths of those questioned said the MOT should stay as it is.

According to the research, 92 per cent of respondents believed that used cars should be tested annually on road-safety grounds, rather than every two years, as under EU regulations. It also found that 93 per cent did not believe that the cost of the annual MOT — the test starts at £54.85 — was an unnecessary burden on motorists.

The survey was commissioned after Mike Penning, the Transport Minister, nounced he was considering relaxing the MOT to an EU regime in which new cars are not tested for roadworthiness until they are four years old, and then every other year. The MOT stipulates the first test after three years and then annually.

Many NTDA members responded to a request from the association to poll customers having MOTs to see what their attitude as to the MOT test and the results were very supportive of maintaining the current regime of 311 on strong safety grounds.

The NTDA along with other members of the MOT Forum, of which the NTDA was a founder member, has warned that such a move could lead to 400 more deaths a year on the roads.

In addition, it is claimed that a less frequent testing regime would cost 40,000 jobs among thousands of small garages, which employ about 100,000 staff.

According to a report on the NTDA website, the Forum is also looking at a number of positive ideas to put to ministers that will benefit both vehicle safety and the motorist including a new approach to the part played by the condition of tyres in the MOT test. The NTDA reports that “all associations” however, are totally opposed to any change in frequency of testing, given its potential devastating effect on road safety.

Mr Penning has said that the DfT will review the MOT regime to “strike the right balance between vehicle safety and the burden imposed on motorists”.

The department is said to believe that modern manufacturing methods mean cars are now far safer. It is understood that the DfT could consider moving to a scheme in which cars are tested on a mileage basis rather than that of age, favouring light users of cars and penalising heavy commercial users.

Other trade Association members of the MOT Forum include the Retail Motor Industry Federation, the Scottish Motor Trade Association.

 

ECA Voices Concerns Over Current Viability of Electric Vehicles

Created: January 04, 2011 10:06:00 AM

From 1st January 2011, the Department for Transport introduced individual grants of £5,000 to purchase electric vehicles (EVs). This is part of the Office for Low Emission Vehicles' £400 million fund to reduce emissions from road transport.

Steve Bratt, Group CEO of the Electrical Contractors' Association (ECA), commented: "Whilst I welcome the introduction of the Electric Vehicle (EV) grant, for EVs to be truly successful we must first make sure we have the infrastructure in place. This means having enough charging points throughout the country; all with a common installation standard, to ensure that they work properly.

Bratt went on to say: "If this initiative is successful, and the number of EVs on the road does increase significantly, it will be vital that the National Grid can cope. As without the correct infrastructure, the public could be left stranded as their car runs out of electricity."

Bratt concluded: "Before the Government takes steps to incentivise the purchase of electric cars, it first needs to address the issues which stand in the way of their future success. If we’re not careful we could see a rerun of battery cars, which became an object of media and popular ridicule during the 1980s."

 

German new-car market grew 7% in December, VDIK says

January 4, 2011 12:31 CET

FRANKFURT (Reuters) -- German auto importers association VDIK said new-car registrations in December rose 7 percent from a year earlier, and it predicted further growth for 2011.

Registrations rose to 230,000 vehicles in December, based on preliminary data released by the German motor transport authority (KBA), bringing total new car registrations for 2010 to 2.92 million, VDIK said on Tuesday.

"I think we can expect to see 3.1 million new car registrations in 2011 and if the economy does well we could quite easily surpass that figure," VDIK President Volker Lange said in a statement.

The German auto importers association last month predicted the German new car market would recover in 2011.

The number of new commercial vehicle registrations continued to grow in December, climbing 37 percent to 26,500, boosted by Germany's strong economic recovery.

Sales of light-duty commercial vehicles have been on the rise since March, while sales of heavy-duty vehicles have seen an upward trend since May 2010.

"I am convinced that the commercial vehicle market will continue to pick up in 2011," Lange said. "I think we can expect to see 296,000 new (commercial vehicle) registrations, which represents an increase of 5 percent and a volume which once again lies slightly above the longstanding average."

European and South Korean carmakers on Monday expressed hope of rising 2011 sales on U.S. and Chinese growth as European markets including Spain and Italy showed December falls.

Figures to be released later on Tuesday are expected to show U.S. December auto sales held above key levels for the third straight month, capping a year of gradual recovery for the auto sector there.

 

VW extends CEO's contract in quest to surpass Toyota

January 3, 2011 06:01 CET - UPDATED: Jan. 3 15:00 CET

FRANKFURT (Bloomberg) -- Volkswagen AG extended CEO Martin Winterkorn's contract by five years, giving the executive time to complete a merger with Porsche Automobil Holding SE and surpass Toyota Motor Corp. as the world's biggest carmaker.

VW's supervisory board unanimously backed the CEO's appointment through 2016, the Wolfsburg-based company said Sunday. Winterkorn, 63, took over as CEO on Jan. 1, 2007, and his current contract expires at the end of this year.

Under Winterkorn, Europe's largest carmaker added Swedish truckmaker Scania AB to its portfolio and is now merging with Porsche, maker of the 911 sports car. The CEO plans to double production capacity in China with two new plants and open a factory in the United States this year as he seeks to beat Toyota in sales and profitability by 2018.

“Winterkorn is the ideal choice to steer VW's growing multi-brand empire,” said Daniel Schwarz, an analyst at Commerzbank AG in Frankfurt who recommends buying the stock. “He's the originator of VW's global expansion plan and best placed to deliver on its goals.”

Porsche's preferred stock rose as much as 16 percent in Frankfurt trading, the biggest intraday gain in 21 months, after a U.S. judge dismissed two lawsuits on Dec. 30 that were tied to the sports-car manufacturer's failed hostile attempt to buy VW in 2008. The automakers have since agreed to combine, with Porsche becoming VW's 10th brand.

Accelerated targets

Volkswagen aims to sell more than 8 million cars by 2012 and 10 million as early as 2015, three years earlier than a 2018 official target, a person with knowledge of the matter said in October.

Fueled by demand for models including the VW-brand Golf compact and Audi A7 coupe, 2010 deliveries may exceed 7 million vehicles for the first time, compared with 6.29 million cars, sport-utility vehicles and vans sold in 2009, sales chief Christian Klingler said on Dec. 10.

VW's preferred shares, which have replaced the common stock on Germany's DAX Index since the Porsche deal, rose as much as 5.40 euros, or 4.5 percent, to 126.80 euros and were up 3.3 percent as of 12:34 CET in Frankfurt. The stock, which has more than doubled since the beginning of 2007, gained 86 percent last year, the best performance in the benchmark index. Porsche gained as much as 9.68 euros to 69.34 euros, the biggest jump since April 2, 2009, and was up 14 percent.

Winterkorn's ranking

Winterkorn ranked first in a semiannual poll published yesterday by Wiesbaden, Germany-based consulting company MC IT Solutions GmbH of 1,000 managers asked to rate the country's top 15 executives, beating Deutsche Bank AG CEO Josef Ackermann and Daimler AG CEO Dieter Zetsche. He also topped the previous survey, released in mid-2010.

“He has the full support of workers,” Bernd Osterloh, the supervisory board's deputy chief and head of VW's works council, said in a statement. “Volkswagen is giving continuity at the top of the company so we can fully concentrate on the details of our tasks.”

Nine-month net income jumped fivefold to 3.78 billion euros ($5 billion). In November, Toyota raised its profit forecast, saying net income may total 350 billion yen ($4.3 billion) for the fiscal year ending in March.

Volkswagen plans to invest 51.6 billion euros in the automotive business over the next five years. The expansion relies on success in China, where VW is adding factories to double production to 3 million cars within four years.

Audi background

Winterkorn, who previously ran VW's Audi luxury unit, took the top job from Bernd Pischetsrieder, who was ousted less than a year after receiving a contract extension.

German supervisory boards typically decide whether to keep their CEOs a year before the contract's end. On Sept. 8, Osterloh told workers at the carmaker's headquarters that Winterkorn would receive a contract extension.

Winterkorn aims for a pretax profit as a proportion of sales of more than 8 percent in 2018. VW's nine-month pretax margin was 5.9 percent. Toyota City, Japan-based Toyota had a first-quarter margin of 5.4 percent.

The CEO has the backing of Lower Saxony, the German state with a 20 percent stake in the carmaker and the power to veto major decisions.

“We support Martin Winterkorn's ambitious goal to make VW No. 1 in the auto market worldwide by 2018,” Prime Minister David McAllister told Bloomberg News in a June interview.

Volkswagen paid $2.5 billion for a stake in Suzuki Motor Corp. in January 2010 to expand in India and is taking over Porsche's sports-car business, adding to VW marques that include Skoda, Seat and luxury brands Audi, Lamborghini and Bentley.

 


Izod IndyCar Series could lose sole tire supplier Firestone 

One of the Izod IndyCar Series' best partners could be leaving the sport.

05th of January 2011 - By Curt Cavin The Indianapolis Star

Firestone, which has been the series' sole tire supplier since 2002 and a key promoter of the drivers and their races, is in the final year of its IndyCar contract. It is in negotiations to determine an exit strategy.

IndyCar CEO Randy Bernard admitted Tuesday that he is "definitely concerned."

"No doubt; definitely concerned," he said.

Bernard said Firestone officials have told him "what we're willing to do 'if' we come back."

Bernard would not reveal particulars of that offer, but Firestone is particularly supportive of the teams and has an impeccable safety record in Indy-car racing. A resolution could come by the end of the week.

Al Speyer, the executive director of Firestone's parent company, Bridgestone Americas Motorsports, could not immediately be reached for comment. Firestone's deadline to renew its contract was Dec. 31.

Firestone's ties to the Indianapolis 500 are as deep as the race itself. Ray Harroun's winning car in the inaugural race, in 1911, used Firestone tires. From 1920 through 1966, Firestone won 43 consecutive 500s.

The company has won 61 of the 94 500s and 91.6% of the IndyCar races since 1996.

The company has two types of Indy 500 tires for passenger cars.

If Firestone departs, any manufacturer of tires will be considered, including Goodyear, Michelin, Cooper and Pirelli. But few have the experience dealing with the various forces Indy cars put on their tires.

 

Audi passes 100,000 auto sales in the U.S. for the first time

Automotive News Europe -- January 5, 2011 08:52 CET

Sales of the Q5 SUV, shown, helped Audi to achieve an 'outstandingly successful' 2010.

MICHIGAN (Bloomberg) -- Audi AG, the luxury brand of Volkswagen AG, sold more than 100,000 cars and sport-utility vehicles in the U.S. last year for the first time, the company said.
The gains are part of Audi CEO Rupert Stadler's goal of passing German rivals BMW AG and Daimler AG's Mercedes-Benz to become the world's No. 1 luxury-car maker by 2015.

Audi, helped by sales of the Q5 SUV, sold 101,629 vehicles in the U.S. last year, a 23 percent gain over 2009, Johan de Nysschen, president of Audi of America Inc., said in a telephone interview on Tuesday. December sales rose about 17 percent to 10,546, he added.
“We came in with a nice finish for what has been an outstandingly successful year for Audi,” he said.
The brand has been able to improve pricing and resale values while decreasing incentive spending, he added.

 

RUBBER EXTENDS RECORD RALLY ON DEMAND OPTIMISM, TIGHT SUPPLY

Rubber futures extended a rally to a record, after data showed manufacturing in the U.S. expanded at the fastest pace in seven months, raising concern that increased demand will worsen a supply shortage, BusinessWeek.com reported, citing Bloomberg. The Thai cash price also climbed to an all-time high. June-delivery rubber surged to as high as 428.6 yen per kilogram (5,220 a metric ton) on the Tokyo Commodity Exchange in after-hours trading. Trading in this session will be settled on Wednesday (Jan. 5). The most-active contract extended last year's advance of 50 percent. Japanese stocks climbed, extending a global rally, after manufacturing in the U.S. expanded in December, boosting confidence in the economic recovery. Oil reached a 27-month high in New York on Monday (Jan. 3), increasing the appeal of natural rubber as an alternative to synthetic products made from petroleum.

 

Latest Bridgestone Race Battlax Available in Spring

Created: January 13, 2011 02:45:00 

This coming spring Bridgestone intends to release its latest production motorcycle racing radial, the Battlax Racing R10. Featuring an all-new tread, structure and compound, the R10 is described by the tyre maker as a product that “offers enhanced user-friendliness and better lap times, benefiting production motorcycle racing worldwide as well as users who enjoy riding high-performance super sport bikes on circuits.” Bridgestone adds that the new tyre was developed with European market use in mind and the end product is one that “provides superb dry performance and handling performance.”

According to Bridgestone, the adoption of a new tread pattern and high-level tuning of the compound and structure has led to improved warm-up capabilities together with a high degree of freedom in cornering. “With its high usability, this product will enable experienced riders to upgrade their driving performance and allow beginners to improve lap times,” comments Bridgestone.

Bridgestone’s range of “Battlax” motorcycle tyres covers the full spectrum from touring to racing, and from small to large-sized motorcycles. “Battlax Racing R10” is intended to appeal to a broad range of users as a product offering enhanced user-friendliness and better lap times in production motorcycle racing scenes. European replacement market sales begin in the spring with one front-wheel size and two rear-wheel sizes. One medium compound is available for the front tyre, with a choice of either hard or medium compound available for each rear size.

 

TESCO IN TYRE TRADE JOINT VENTURE WITH BLACKCIRCLES

Tesco, Britain's biggest retailer, is moving into the car tyre trade, teaming up in a scheme with Blackcircles.com - a tyre specialist run by ex-Tesco worker Mike Welch, TheSun.co.uk reported. Beginning next month, motorists will be able to place orders on a Tesco Tyres Web site, then take their car to one of 1,200 affiliated garages to have them fitted. As well as discounts up to 40 percent on their rubber, they will also get Clubcard loyalty points. Mr. Welch said, "I've been chasing this deal for three years. Tesco's marketing might will be great for us. And if you look at Tesco insurance, Tesco bank, there's an obvious move towards them owning more of the motorist." Tesco already profits 1 pound ($1.58) in every 7 pounds ($11.09) spent on U.K. high streets - and selling tyres gives them yet more commercial clout. As well as enjoying a dominant share of the grocery sector, it has moved into everything from clothing to kitchens.

 (TheSun.co.uk - Cheshunt, Herts, U.K. - Jan. 13)

 

EVONIK RAISING CARBON BLACK PRICES UP TO 10% ON FEB. 15

Evonik Carbon Black GmbH, a subsidiary of Evonik Industries, Essen, is increasing prices of Carbon Black Pigment grades and Pigment Black Preparations by up to 10 percent for deliveries to locations in Europe, Asia and RoW. The price increase will be effective for all deliveries on or after Feb. 15. Evonik Carbon Black GmbH is one of the world's largest producer of carbon black (furnace carbon black, lamp black, gas black and thermal black).

 (Evonik Industries [www.corporate.evonik.com] - Essen, Germany - Jan. 13)

 

Renault accuses foreign company of spying

Automaker triggers criminal probe over EV leaks
Automotive News Europe -- January 14, 2011 06:01 CET

PARIS (Reuters) -- Renault accused a foreign private company of industrial espionage in an official filing that set the wheels in motion for a judicial investigation.

Jean-Claude Marin, the Paris prosecutor who will consider Renault's allegations, said: "They don't cite a foreign power, they only cite private persons."

Renault said in its filing on Thursday that it was a victim of corruption, theft and concealment and had discovered serious misconduct detrimental to its "strategic, technological and intellectual assets."

Renault did not name any perpetrators or a company.

Last week Renault suspended three executives on suspicion they had leaked information about its high-profile electric car technology in a case the French government has dubbed "economic warfare" and which has prompted a move to tighten laws to protect companies.

The carmaker's formal complaint puts the matter into the hands of the French judiciary and could lead to an investigation by France's DCRI domestic intelligence agency.

China denies involvement
A government source last week said intelligence services were looking into a possible connection to China.

The French government has since played down the possibility of a link to China, saying it is not accusing any one country of involvement, while China has denied any link to the case.

"I can tell you that many nationalities have been mentioned in this dossier," said Renault's lawyer Jean Reinhart, noting that the complaint did not cite foreign countries.

Reinhart, a specialist in corporate and social law, was part of a team representing French bank Societe Generale in last year's high-profile trial of rogue trader Jerome Kerviel.

He told Reuters a complaint against "persons unknown" was used when the identities of all those involved in a complaint were not necessarily known.
"You're saying, 'this is what I have possibly identified ... but you're saying perhaps there are more people to be discovered," he said.

Reinhart added: "I think we're in for a preliminary investigation which could take a relatively long time. It's a very complicated dossier ... we're talking about months."

The prosecutor can either open a preliminary investigation that he oversees, or open a judicial inquiry that would be entrusted to an independent magistrate.

Passing the inquiry over to an independent magistrate would legally allow for a more forceful investigation as well as an overseas investigation, but this method has been used less and less in recent years for cost reasons.

A source close to the government said last week that the DCRI was already examining the matter, before being officially handed the investigation, in its role as intelligence agency reporting to the state.

EV technology 'safe'
Renault Chief Operating Officer Patrick Pelata said the carmaker had been the victim of an organized international network but that key technology for electric vehicles, in which it is investing heavily, was safe.

Xavier Thouvenin, the lawyer representing Michel Balthazard, vice president of advance planning and the most senior of the three suspended executives, said his client was still waiting to find out what he was accused of.
"He's shocked by it, let's be clear about it... He's going to clear his name," Thouvenin said.

The other two executives are Bertrand Rochette, Balthazard's number two, and Matthieu Tenenbaum, deputy head of the company's electric vehicle program.

Rochette has said he was "amazed" at his suspension and denied leaking information for money, comparing the situation to Kafka's The Trial, which tells the story of a man prosecuted by a remote authority for reasons that never become clear.

Tenenbaum's lawyer has said Renault did not answer key questions about what his client was accused of, adding that the allegations were based on an anonymous letter.

 

Ford, Fiat, Toyota lead European volume car sales drop in 2010
Automotive News Europe -- January 14, 2011 09:20 CET

STOCKHOLM (Bloomberg) – Ford Motor Co., Fiat S.p.A. and Toyota Motor Corp. led a ninth consecutive monthly drop in European auto sales as mass-market carmakers continued to suffer from the end of governments' car-scrapping incentive programs.

Ford's registrations fell 26 percent on year-on-year December sales, while Fiat's sales dropped 19 percent and Toyota's fell 9 percent, the Brussels-based European Automobile Manufacturers' Association said Friday.

Demand in the region fell 2.7 percent to 1.05 million vehicles after governments last year ended scrappage subsidies put in place to aid the auto industry during the recession.

“The scrappage incentive schemes have now run their course and because of that the volume makers are going to find it relatively more difficult in 2011,” Jonathon Poskitt, an Oxford, England-based analyst with J.D. Power & Associates, said before the release. “The non-premium players will fare worse than the 2 percent decline we forecast for the full market including the premium makers in Europe.”

Full-year sales in the European Union plus Iceland, Norway and Switzerland declined 4.9 percent to 13.8 million cars.

December registrations rose 6.9 percent in Germany, Europe's biggest market, helped by gains at premium makers BMW AG and Volkswagen AG's Audi luxury brand. Europe-wide sales by VW fell 1.3 percent, led by an 8.8 percent slide for VW-brand mass-market vehicles.

Largest markets decline
Registrations fell in all of Europe's other top markets of France, Italy, Spain and the U.K. in December. French registrations decreased 0.7 percent, weighing on PSA/Peugeot-Citroen SA, whose sales in Europe fell 6.3 percent.

PSA, said Thursday that it expects the region's auto market to stabilize in 2011. The company should benefit from the introductions of the Peugeot 508, the 3008 Hybrid4, the Citroen DS4 and later the DS5, it said in a statement.

France's incentive program ended last month after being trimmed in July to 500 euros ($670) per traded-in car from 700 euros in the first half and 1,000 euros in 2009.

Ford started selling a new version of its C-MAX wagon and will offer an overhauled version of the Focus compact in the first quarter. The carmaker said yesterday it's introducing “at least 20 new products and derivatives” in Europe in the next three years.

Ford Europe CEO Stephen Odell said the carmaker would refrain from trying to boost volume or market share through “widespread and excessive incentives” as that would hurt its business.

“The carmakers exposed to the western European mass market will experience increasing pricing pressure and higher raw material costs” in 2011, London-based Credit Suisse analyst Arndt Ellinghorst said in a phone interview Thursday. “It'll be the second year in a row that European mass-market players are falling further behind the much more profitable and cash-generating premium makers.”

 

INDIAN TYRE MAKERS EXPECTED TO HIKE PRICES ON SURGING RAW MATERIAL COSTS

Indian tyre manufacturers may increase prices this month, as rubber input costs continue to climb in the domestic and international markets, MoneyLife.in reported. The tyre price increases are likely to be in the range of 3-5 percent, according to industry players and analysts. "Of course, we are under pressure due to rising prices of rubber in the domestic market," RK Agarwal, head of marketing, Modi Tyres, told

MoneyLife. "We are monitoring the raw material prices, and if rubber prices go up then it will push tyre prices too." Mr. Agarwal did not give an estimate of the quantum of increase. Apollo Tyres, Ceat and Bridgestone already hiked prices by 1-2 percent in December. "We are expecting an average hike of 3 percent this month," said a Mumbai-based distributor of one of the country's major tyre makers. "…to maintain the current margin level, tyre manufacturers will have to increase prices by 8-10 percent," Surjit Arora, analyst at Prabhudas Lilladher, told MoneyLife.

 (MoneyLife.in - India - Jan. 12)

 

Bridgestone boasts Brand Loyalty

Created: December 08, 2010 04:41:00 PM

DSV, a global organisation that offers total logistic solutions across a wide range of industrial and commercial sectors, has re-signed an additional 12 month contract with Bridgestone. The majority of DSV’s fleet of 7500 trucks is fitted with Bridgestone Bandag 385/65R22.5.

The partnership between Bridgestone and DSV is an example of brand loyalty, following 9 years repeated business. The challenges of global logistics are to achieve reliability, speed and cost effectiveness.  By utilising Bridgestone’s Total Tyre Management package, DSV has seen significant improvements in product performance and reductions in administrative costs across the DSV network compared to their previous contract.

Bridgestone UK commercial director Greg Ward commented: “This is great news that we have reached a new agreement with DSV, we have developed a good working relationship together, and we look forward to developing our partnership into the future.”

DSV deputy manager Flemming Steiness said: “DSV Road is delighted to continue business with Bridgestone in UK and Ireland. With an extensive network of service providers and fast efficient administration team which complements all DSV's daily operational requirements.”

 

HiQ Announces Investment in Online Marketing

Created: December 08, 2010 03:23:00 PM

A ‘six figure’ investment in online marketing has been outlined at the recent HiQ national conference. This sum will cover a pay per click and rich media campaign driving new business to the fast fit network’s website, where each of the company’s 150 centres hosts its own bespoke micro site. The year-long online campaign will begin in January and target popular search engines including Google, Bing and Yahoo. HiQ says it will also shortly announce some new strategic online partnerships in the affinity marketing arena.

The HiQ network says the campaign has been carefully developed and targeted and will be driven by behavioural analysis. Significant sales results are anticipated through the search engine marketing and advertising. According to HiQ's Create Demand manager, Geraldine McGovern, the investment is another example of the brand's commitment to its franchise partners: "Overall, we think this is a really strong message. In addition, we are tripling our investment in search engine optimisation and we also announced new investment in a new Direct Marketing (DM) and eDM programme, again demonstrating our commitment to our partners in driving footfall and new business.”

“We are absolutely committed to the online arena; we always play smart with investment and online give us the transparency on return on investment that we are looking for,” McGovern added. “We continue to remain committed to leading the fast fit category online and innovation lies at the heart of what we do. Continuing innovation and investment in unique industry offerings like our bespoke micro sites for each HiQ Centre drives our success. HiQ will also lead and set the benchmark for groundbreaking use of social media and marketing in the automotive category. Watch out for some very exciting announcements from HiQ in 2011.”

The network’s website, www.hiqonline.co.uk, has already outperformed its set business objectives for 2010 and has increased its traffic by 24 per cent year-on-year.

 

Recovery sparks 80% leap in Russia car sales in November

Sales reach two-year high on economy, rebate program

December 8, 2010 10:16 CET

ST. PETERSBURG (Bloomberg) -- Russian new-car sales rose 80 percent in November, the most in two years, as the economy rebounded and the government extended its rebate program for used vehicles.

Sales of cars and light trucks reached 189,902 vehicles last month, pushing the year-to-date total to 1.7 million, or 28 percent more than for the same period last year, the Association of European Businesses said.

Sales may reach 1.9 million units this year, which is “significantly beyond any previous forecasts,” David Thomas, chairman of the AEB's automobile-manufacturers committee, said in a statement.

The government is spending at least 21.5 billion rubles ($687 million) this year on cash incentives for automobile purchases. Russia is following countries around the world that extended incentive programs to reverse slumps in car sales during the worst global slowdown since World War II.

“Clearly the scrappage scheme and improving credit availability have combined with increased consumer confidence to deliver growth across all segments and most brands,” Thomas said.

Foreign carmakers including Volkswagen AG, Ford Motor Co. and Toyota Motor Corp. are increasing output in Russia and rolling out new models as the country's economy expands.

The four best-selling models through November are all Ladas, made by AvtoVAZ, Russia's largest automaker, followed by Ford's Focus and Renault SA's Logan, which are made in Russia.

 

BMW posts 20% November sales gain, outpacing Mercedes

December 8, 2010 11:46 CET - UPDATED: Dec. 8 14:00 CET

BERLIN (Bloomberg) -- BMW AG outpaced sales growth at Daimler AG's Mercedes-Benz unit last month on demand for the new BMW 5 series and X1 SUV.

Deliveries of BMW, Mini, and Rolls-Royce models rose 20 percent to 129,014 vehicles in November, the Munich-based automaker said today in an e-mailed statement. The rise, BMW's highest monthly gain this year, lifted sales thus far in 2010 to 1.32 million vehicles, an increase of 14 percent.

“BMW is well on its way to reaching its target of more than 1.4 million units this year,” Ian Robertson, BMW's sales chief, said in the statement. “We are outperforming the market and were able to expand our market share worldwide once again.”

Luxury car demand is snapping back from the financial crisis on growth in China and a rebound in the United States. The 5 series, X1 and new Mini Countryman have given BMW extra momentum. Sales of the Mercedes brand climbed 14 percent last month, dragged down by a 27 percent drop in deliveries of the Smart ForTwo minicar.

The new version of the 5 series, which was introduced earlier this year, boosted deliveries for the sedan by 87 percent to 20,702 vehicles. The X1 sold 9,160 units, topping 100,000 sales since being introduced last autumn. Mini sold 4,165 units of the Countryman, which went on sale in September. Mini's first four-door model accounted for 20 percent of the brand's sales.

Through November, the Mercedes brand rose 16 percent to 1.06 million, closing the gap with BMW. The manufacturer's namesake brand climbed 15 percent to 1.11 million vehicles in the first 11 months of the year.

 

INDIAN TYRE MAKERS' MARGINS ERODE ON HIGH RUBBER PRICES

Squeezed between soaring raw material prices and stagnant finished product prices, Indian tyre manufacturers are facing a decline in margins, Business-Standard.com reported. Net income of tyre companies from operations - known as margins - has plunged to almost "nil" from an average 5 percent last year. If the rise in natural rubber prices continues, the margins may move into the negative territory soon, say companies. "The increase in natural rubber prices has had a huge impact on our margins, says A.S. Mehta, marketing director, JK Tyre. "This has to be looked into. All tyre companies are impacted. The content of natural rubber in tyres is 40-45 percent and varies from product to product," he added. Koshy Varghese, vice president, marketing, MRF, said: "There's a shortage of rubber in the market. Price is a function of demand and supply. We should not allow the situation to aggravate." Anant Goenka, deputy managing director, Ceat, said: "Prices were expected to cool but they didn't. Use of synthetic rubber will be encouraged in a limited quantity. 

 (Business-Standard - Mumbai, India - Dec. 8)

 

MORE ON MARGINS ERODING ON HIGH RUBBER PRICES

The Ahmedabad-based National Multi Commodity Exchange (NMCE) suggested that Indian tyre manufacturers should participate on the exchange platform to hedge risk in raw materials like natural rubber and protect margins, Business-Standard reported. Lesser carryover inventory, inadequate supply, extended monsoon and adverse climate in most producing countries have kept rubber high globally, and no fall in prices is in sight. The price rise is on the basis of fundamentals. There is global tightness in availability. It is more so in India due to good growth in the tyre sector. Tyre production in India in the first half of this financial year (April-September) increased 28 percent, while exports rose 18 percent. Production increased in all tyre segments, while growth was negative in export of truck/bus tyres and lightcommercial vehicle and tractor tyres, according to data from the Automotive Tyre Manufacturers'

Association (ATMA),

 (Business-Standard.com - Mumbai, India - Dec. 8)

 

Daimler plans to expand Mercedes India plant as sales gain

December 8, 2010 14:00 CET

MUMBAI (Bloomberg) -- Daimler AG plans to invest as much as 3.5 billion rupees ($78 million) to expand its India factory that builds Mercedes-Benz cars as demand for luxury vehicles gains in the nation.

The automaker is adding a second production shift starting today at its Pune, western India, facility to double the plant’s capacity to 10,000 vehicles a year, said Suhas Kadlaskar, the local unit’s director of corporate affairs. Daimler will spend 2 billion rupees on a paint shop that will be ready in 2012, he told reporters at the factory.

Daimler, BMW AG and Volkswagen AG’s Audi division are seeking to tap rising demand for premium brands in India, where economic growth and stock market gains spur spending on luxury. The nation’s market for luxury goods and services is projected to triple to $14.7 billion by 2015, according to an October report by the Confederation of Indian Industry and A.T. Kearney Inc.

The world’s second-largest luxury-vehicle maker expects Mercedes-Benz sales in India to rival the UK within a decade as rising wealth stokes demand, Wilfried Aulbur, head of the local unit, said in September.

Daimler’s passenger vehicle sales in India increased 79 percent from a year earlier to 3,827 units between April and November, according to data compiled by the Society of Indian Automobile Manufacturers. BMW’s sales rose 72 percent to 4,031 vehicles in the period, according to the industry group.

Rich getting richer

The combined net worth of India’s 100 wealthiest people climbed to a record $300 billion this year, equivalent to about a quarter of India’s gross domestic product, according to Forbes. India’s wealthy may almost double their assets to $6.4 trillion over the next five years as economic growth swells their ranks, Credit Suisse Group AG said in a report in October.

Tata Motors Ltd., the owner of Jaguar Land Rover, will set up 10 dealerships for the luxury car brands in India this fiscal year and begin assembling Land Rover SUVs in the country starting in the middle of next year.

India’s finance ministry yesterday raised its economic growth forecast for the current financial year. The economy may expand as much as 9.1 percent in the year ending March 31, the ministry said in a report to parliament. It had projected a growth rate of 8.25 percent to 8.75 percent in February.

The benchmark Sensitive Index of the Bombay Stock Exchange gained 13 percent this year, the best performer among the world’s 10 biggest stock markets.

 

EVONIK CARBON BLACK TO RAISE PRICES JAN. 1

Evonik Carbon Black GmbH, a subsidiary of Evonik Industries, Essen, is increasing prices for carbon black rubber grades Corax, Durex, Ecorax and Purex by 100 euros ($133) per ton in Europe and neighboring countries. The price increase will be effective for all deliveries on or after Jan. 1.

 (Evonik Industries [www.evonik.com] - Essen, Germany - Dec. 6)

 

MORE ON TYRE INDUSTRY UNDER WATCH

Tyre manufacturers have developed formulations with alternative materials that are free from nitrosamine and PAH-free oils which are environmentally safe and not harmful to human health. The EU has published a list of materials from nitrosamine that could not be used in the tyre (TRGS-522). Tyre makers are now changing all compound formulations into PAH, nitrosamine and carcinogenic-free in accordance with EU directive 2005/69/EC and TRGS-522. "However, in tyre compounding, we can achieve low-rolling resistance without compromise over traction in many ways," says Dr. Chandra. Tyre labeling, which will allow customers to quickly determine these performance optimization, will be driving the market in Europe and the U.S. from 2012 onwards. The demand is growing fast for environmentally-friendly tyres, and the industry is switching over to green compounds and manufacturing processes to meet regulations and consumer expectations.

 (Polymers & Tyre Asia - October/November 2010 - Wadhurst East Sussex, U.K. - Dec. 6)

 

New European Rules on the Notification of Chemical Substances

Created: December 06, 2010 12:28:00 PM

The Health and Safety Executive (HSE) is highlighting the European Chemical Agency’s (ECHA) campaign to remind companies that new rules on classification, labelling, packaging and notification of chemical substances came into force on 1 December 2010. From December, within one-month of placing a chemical substance on the market, all companies involved in their manufacturer or import will need to notify the ECHA for their inclusion in the new Classification and Labelling Inventory.

In 2002, an international agreement established a harmonised approach to the labelling and packaging of chemicals and, through legislation, the European Union laid out how its member states would support the agreement. Phased in over a five-year period, the legislation will apply to chemical substances from December and to chemical mixtures from 1 June 2015.

Companies that carry out one or more of the following activities and place chemical substances on the market will need to notify: manufacture substances subject to REACH registration; import substances (e.g. dye stuffs) subject to REACH registration; manufacture or import substances which are classified as hazardous, irrespective of the quantity; import mixtures containing hazardous substances, irrespective of the quantity; import articles containing substances which are subject to REACH registration.
 
ECHA has published a Practical Guide which explains the role of the Inventory, the information needed in a notification involves, and how to submit it.

It is worth pointing out that the first working day in 2011 is 3 January. This means that the first notification deadline is 3 January, for all substances placed on the market on 1, 2 and 3 December 2010. To ensure companies do not miss the first deadline for notification, 3 January, the ECHA recommends that notifications are submitted from now on and well before 24 December 2010.

 

Transport Minister & Winter Tyres: “A Complete Lack of Understanding”

Created: December 03, 2010 03:32:00 PM

While we appreciate tyres getting a mention in the House of Commons yesterday, it is regrettable that our Secretary of State for Transport hadn’t studied up on the subject beforehand. During a speech intended to reassure that last winter’s ‘big freeze’ mayhem would not be repeated this year, no less a person than the Rt Hon Philip Hammond MP questioned their suitability for the UK and told parliament that “winter tyres wear out very quickly on normal road surfaces” – a feature that would be a major disadvantage for the cold weather product, were it true.

Tyre safety advocates have been quick to refute Hammond’s comments. A statement released by TyreSafe expresses the organisation’s “disbelief and concern over the Government’s lack of understanding” regarding the added safety benefits of winter tyres. “Despite many independent tests proving that winter weather tyres are the safest option for drivers across the entire winter period, Mr. Hammond incorrectly claimed they were not appropriate for UK situations,” TyreSafe noted.

“Mr Hammond’s comments show a complete lack of understanding about modern winter tyres which are the ideal solution to the type of weather we are currently experiencing,” explained Stuart Jackson, chairman, TyreSafe. “Studless winter tyres are designed to provide much better grip over the entire winter period, not just for when people are driving for long periods on compacted snow as he implied. They do not damage road surfaces in any way and are wholly appropriate for the UK situation.”

Winter tyres can in fact be used all year round but their performance is notably better when temperatures fall below seven degrees Celsius. In these conditions, ‘standard’ tyres begin to harden and lose their ability to grip the road surface properly. TyreSafe shares that tests conducted by the British Tyre Manufacturers Association found that a car braking at 60mph on a wet road at five degrees Celsius stopped five metres shorter, equivalent to more than one car length, when fitted with winter tyres. On ice and snow covered roads the difference was even more remarkable. The car equipped with winter tyres stopped 11 metres sooner on ice and eight metres sooner on snow, from just 20mph.

As for tyre wear, TyreSafe has responded to Mr. Hammond’s remarks by pointing out that in winter conditions winter tyres do not wear any more quickly than conventional tyres, and they are also manufactured with a deeper tread to improve performance.

To help drivers further understand the benefits of winter weather tyres, TyreSafe has added a new dedicated section to its tyresafe.org website along with an updated information leaflet which can be downloaded free of charge. Mr. Hammond and other motorists are more than welcome to pay the site a visit.

 

Zetsche predicts a tough 2011 for Europe's carmakers

David Jolley - Automotive News Europe -- December 6, 2010 08:34 CET

Europe's carmakers face a tough 2011 despite an improving economy, Dieter Zetsche, president of auto industry group ACEA.

“The European automobile industry is recovering from the financial and economic crisis, but the macro economic circumstances in Europe remain very challenging,” said Zetsche, who is also Daimler AG's CEO. The comments appeared in a statement announcing that Zetsche had been re-elected president of the Brussels-based lobby group.

Zetsche said that in 2011 ACEA will focus on sustainable mobility, including improvements in road safety and on its aim to enhance the global competitiveness of the EU automotive industry.

Despite the crisis, Europe's automakers "have stayed in the fast lane on our way to sustainable mobility," Zetsche said.

He added that a "well-designed and executed EU industrial policy can make a tangible difference” to ACEA's goals.

ACEA represents the interests of European car, truck and bus manufacturers at EU level.
 

UK car sales fall for fifth successive month in Nov.

11.5% decline less than expected

December 6, 2010 10:16 CET

LONDON (Reuters) – November car registrations fell 11.5 percent in the UK from the year before, the Society of Motor Manufacturers and Traders said on Monday.

The new-car market declined for a fifth successive month as it continued to adjust to the loss of the scrappage incentive scheme. Despite this, sales for 2010 are expected to be higher than a year ago, with sales up 3.4 percent over the first 11 months of the year at 1,907,029 units.

The trade association said it expected new-car sales in 2010 as a whole to be over 2.03 million units, up about 2 percent from 2009.

According to the society, new-car registrations totaled 139,875 last month, but the fall was smaller than expected, possibly due to people bringing forward purchases to avoid the rise in value added tax from 17.5 percent to 20 percent in January.

Fleet sales boost figures

A rise in fleet sales, which rose 10.7 percent over the year-to-date, also helped, they added. Diesel car volumes rose sharply to 53 percent in November, in contrast to the slowdown in registrations of gasoline-powered cars which benefited strongly from last year's scrappage scheme.

Registrations of alternatively fueled cars jumped 83.5 percent in November to give them a 1.3 percent share of the November market and a 1.1 percent share over the year-to-date.

The Ford Fiesta was once again the best-selling new car in the month, with demand for subcompacts weakening following the end of the scrappage scheme, but volumes of dual purpose vehicles and MPVs continue to rise.

"Registrations are expected to fall next month, but demand may benefit from motorists looking to avoid the January VAT rise. Next year will continue to be challenging as consumer spending tightens and government's austerity measures take effect," SMMT CEO Paul Everitt said in a statement.

The market is forecast to fall by some 5 percent in 2011 to 1.93 million units, due to the effect of the austerity measures and the expected squeeze on consumer spending.
 

Russia JV plans 500,000 Fiat and Jeep models a year

Luca Ciferri - December 6, 2010 08:57 CET

Fiat S.p.A. and Chrysler Group's Jeep unit will eventually produce 500,000 vehicles a year with Russian partner OAO Sollers, said Vadim Shvetsov, CEO of Sollers.

A joint venture by Fiat and Sollers will make 300,000 vehicles a year in the first stage of production, later increasing that to half a million, Shvetsov told reporters on Monday.

The venture will also make transmissions and engines in Russia.

Fiat CEO Sergio Marchionne's five-year plan calls for Fiat to win a 7 percent share of a Russian market projected at 3.1 million units in 2014.

The Russia joint venture will build a Fiat compact hatchback and sedan, a subcompact, and a large sedan as well as the Jeep Grand Cherokee and Wrangler and Compass/Patriot and Cherokee replacements.

The expansion of the Jeep brand in Russia is part of Chrysler' plan to double Jeep global sales from 400,000 units planned this year to over 800,000 units in 2014.

The Fiat-Sollers venture could become Russia's second largest automaker after AvtoVAZ.

 

NOVEMBER PRELIMINARY CLASS 8 TRUCK NET ORDERS HIGHEST IN OVER 4 YEARS

FTR Associates of Nashville, Ind., has released preliminary data showing November Class 8 truck net orders for all major North American OEM's totaled 26,005 units, up 38 percent from October and the highest monthly order level since May 2006, over four years ago. November marked the fourth consecutive month-over-month increase in orders. Net order activity for the six-month period, including November, equates to an annual rate of 198,510 units. The figures include the U.S., Canada, Mexico and exports. FTR Associates has been a leader in transportation forecasting for over 20 years.

 (FTR Associates [www.ftrassociates.com] - Nashville, Ind. - Dec. 6)

 

RAC ANNOUNCES WINTER TIRE USAGE BY PROVINCE

The Rubber Association of Canada (RAC) released today (Dec. 6) its findings of winter tire usage by province. The data was compiled by examining the tire industry's winter tire shipments by province over the past five years, as measured against vehicle registrations. Here is the winter tire usage by province:

Quebec - 98%; New Brunswick - 60%; Nova Scotia - 56%; Newfoundland & Labrador - 44%; Ontario - 37%; Alberta - 31%; Prince Edward Island - 27%; British Columbia - 23%; Saskatchewan - 23%; and Manitoba - 17%.

The national average of 48 percent suggests there is much room to grow, the RAC said.

Quebec has always had the highest usage of winter tires in Canada, but even it received a boost with the advent of its law in 2008, making winter tires mandatory. Over 50 percent of motorists in Atlantic Canada have always used winter tires. Barely one-third of Ontarians use winter tires, which prompted the creation of a Winter Driving Coalition.

 (Rubber Association of Canada [www.rubberassociation.ca] - Mississauga, Ont. - Dec. 6)

 

Bridgestone to Raise Truck and Bus Tyre Prices in Japan

Created: December 07, 2010 07:47:00 AM

As of March 1, 2011 prices of Bridgestone’s Japanese market truck and bus tyres will increase by an average of seven per cent. This increase applies to both summer and winter tyre lines.

In announcing the increase, Bridgestone notes natural rubber prices are continuing to rise “at an unprecedented rate” and that the price of petrochemical based materials such as synthetic rubber and carbon black remain at high levels. The tyre maker says it has already implemented internal measures to compensate for these raw material prices, such as increased productivity and enhanced manufacturing efficiencies, however the amount of rubber needed in the production of truck and bus tyres has led prices to rise “to a level that can not be overcome entirely through internal measures.”

 

INDIAN TYRE COMPANIES STOP SIGNING FRESH RUBBER IMPORT DEALS

Indian tyre makers have stopped signing new natural rubber import deals, as they are getting the raw material more than 15 percent cheaper in the local market, two dealers and one trade official told Reuters, The Economic Times reported. India imports mainly from Thailand, Malaysia and Indonesia. "They (tyre makers) are aggressively buying in the domestic market due to cheaper supplies," said a dealer based in Kochi in the southern state of Kerala, the biggest producing state in the country. On Friday (Dec. 3), spot price of the most traded RSS-4 rubber (ribbed smoked sheet) was 197 rupees ($4.36) per kilogram (kg) in India, as against 203 rupees ($4.50) per kg in Bangkok. In the past one month, spot rubber price in India has risen by 1 percent, while that in the international market rose by 9 percent. Rubber is at least 15 percent cheaper in India if you add import duty and freight charges, and calculate landed cost of imported rubber. India charges 20 percent import duty on natural rubber.

 (The Economic Times [reuters.com] - Mumbai, India - Dec. 3)

 

Rubber Nears 30-Year High as Thai Supply Limited, Oil Advances

December 06, 2010, 3:02 AM EST – Bloomberg - By Aya Takada

Dec. 6 (Bloomberg) -- Rubber climbed to a three-week high after a rally in oil raised the appeal of the commodity as an alternative to synthetic products used in tires and tight supply boosted the Thai cash price to a record.

May-delivery rubber on the Tokyo Commodity Exchange gained as much as 2.3 percent to 378.8 yen per kilogram ($4,569 a metric ton) before settling at 378 yen. The price climbed to the highest level since Nov. 11, when a most-active contract reached a 30-year high of 383 yen.

Oil advanced to the highest in 26 months in New York amid optimism fuel demand will increase. Physical rubber prices in Thailand, the biggest producer and exporter, increased to a record on Dec. 3 on a supply shortage, according to the Rubber Research Institute of Thailand. Futures also gained on expectation the Federal Reserve may take more steps to boost economic growth.

“Rubber chased a rally in oil and metals as investor demand for commodities increased amid speculation over U.S. monetary easing,” Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co., said today by phone. “Futures were also supported by the strength of physical rubber prices.”

Federal Reserve Chairman Ben S. Bernanke said U.S. unemployment may take five years to return to a normal level and that Fed purchases of Treasury securities beyond the $600 billion announced last month are possible.

Bernanke Comments

“At the rate we’re going, it could be four, five years before we are back to a more normal unemployment rate” of about 5 to 6 percent, Bernanke said according to the transcript of an interview aired today on CBS Corp.’s “60 Minutes” program.

Bernanke and other Fed officials have defended the central bank’s announcement that it will purchase $75 billion in Treasury securities a month through June to prop up a recovery so weak that only 39,000 jobs were created in November.

Oil for January delivery added as much as 0.6 percent to $89.76 a barrel in electronic trading on the New York Mercantile Exchange, the highest since October 2008, before trading at $89.69 at 4:53 p.m. Tokyo time. Higher oil boosts the cost of making synthetic rubber.

The cash rubber price in Thailand climbed to a record 134.05 baht ($4.46) per kilogram on Dec. 3, according to the Rubber Research Institute of Thailand. Demand remained strong amid a supply shortage as rain persists in southern Thailand, the institute said. Thailand’s south accounts for 80 percent of output. The Thai market was closed today for a holiday.

Bridgestone Corp., the world’s largest tiremaker, plans to raise Japanese prices of truck and bus tires by an average of 7 percent after rubber and petrochemical costs increased. The changes will take effect March 1, the company said in a statement on its website today.

May-delivery rubber in Shanghai added 1.5 percent to 32,835 yuan ($4,939) a ton. It reached a record 38,920 yuan on Nov. 11.

China’s natural-rubber inventories dropped for the first time in 10 weeks, declining 6,665 tons to 55,346 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the bourse said on Dec. 3.

--Editors: Jarrett Banks

 

John Bolster Award: Bridgestone

By Jamie O'Leary- Sunday, December 5th 2010, 22:29 GMT

Bridgestone has been honoured at the AUTOSPORT Awards in London by winning a John Bolster Award.

The Japanese tyre manufacturer bows out of Formula 1 this year after a 14-year unbroken run in the sport during which it has achieved huge success.

The award, which celebrates technical achievement in motorsport, was presented to the company's director of motorsport Hiroshi Yasukawa by Red Bull team principal Christian Horner.

"I'd like to thank everybody for the award," said Yasukawa. "I am very happy we have achieved very competitive tyres [in F1] and some very good results.

"Sometimes it has been a very tough battle [to do that], but we are very happy."

Founded in 1931 by Shojiro Ishibashi, Bridgestone rubber first appeared in F1 in 1976 on Kazuyoshi Hoshino's car at the Japanese Grand Prix.

It would not make a full-time move into the sport until 1997 however, instead gaining a huge amount of success in touring cars, sportscars and junior single-seater racing.

Its first podium in F1 came courtesy of Rubens Barrichello at Monaco in 1997 while Mika Hakkinen was the man who won both its first grand prix and world championship the following year for McLaren.

In total, Bridgestone-tyred cars have won 175 World Championship grands prix, taken 168 pole positions, set 170 fastest laps and finished on the podium 482 times.

Eleven drivers' and 11 constructors' titles have also been won using the Japanese rubber.
Since 2007 it has been the only tyre supplier in F1 while next year, following its withdrawal from the sport, Pirelli will take on that mantle.

 

TYRESAFE HIGHLY CRITICAL OF WINTER TYRE INSURANCE PREMIUM HIKES

Following a report this week in Auto Express magazine, TyreSafe, the U.K.'s leading tyre safety organization, said it is concerned and disappointed at reported additional premiums being charged by some insurers for drivers fitting winter tyres. The magazine claims that some insurers regard the fitting of winter tyres as a vehicle modification, resulting in high insurance premiums for drivers. TyreSafe's criticism has also been echoed by industry bodies RoadSafe and the NTDA. "Many independent tests have proven that winter-weather tyres are the safest option for drivers throughout the entire winter period, not just when we have snowfall and ice," explains Stuart Jackson, chairman, TyreSafe. "To penalize drivers for taking a positive step to improve their safety on the road seems absurd. With the high number of drivers still being killed or injured in tyre-related accidents each year, we should be actively encouraging responsible behavior, such as the fitting of winter tyres."

 (TyreSafe [www.tyresafe.org] - United Kingdom - Dec. 3)

 

TYRESAFE CONCERNED BY GOVERNMENT'S INACCURATE WINTER WEATHER TYRE ADVICE

Following a statement in the House of Commons on Thursday (Dec. 2) by Secretary of State for Transport, the Rt Hon Philip Hammond MP, TyreSafe, the U.K.'s leading tyre safety organization, has expressed its disbelief and concern over the government's lack of understanding about the added safety benefits of winter-weather tyres. Despite many independent tests proving that winter-weather tyres are the safest option for drivers across the entire winter period, Mr. Hammond incorrectly claimed they were not appropriate for U.K. situations, TyreSafe says. "Mr. Hammond's comments show a complete lack of understanding about modern winter tyres, which are the ideal solution to the type of weather we are currently experiencing," explains Stuart Jackson, chairman, TyreSafe. "Studless winter tyres are designed to provide much better grip over the entire winter period, not just for when people are driving for long periods on compacted snow as he implied. They do not damage road surfaces in any way, and are wholly appropriate for the U.K. situation."

 (TyreSafe [www.tyresafe.org] - United Kingdom - Dec. 3)

 

2010 Up 9 Points, But 2011 a Downer, RMA Says

Created: December 02, 2010 04:17:00 PM

The RMA is projecting a huge overall increase in tire shipments this year – by more than 9 per cent – thanks to sharp jumps in both the OE and replacement markets, reports Tire Review. But it will be more of the same in 2011, as growth projections fall to just 2 per cent for next year.

According to its year-end projection, the RMA is calling for an increase of some 24 million tyres in total or a 9 per cent increase versus 2009 shipment results. Looking forward, the RMA sees a small 2 per cent year-to-year increase for 2011 thanks to continuing economic uncertainty.

Segment by segment, here is how the RMA sees 2010 finishing: 

OE P-Metric: Up approximately 11 million units, or nearly 44 per cent.

OE LT-Metric: A 31 per cent increase, or 900,000 units, in 2010 to nearly 3.7 million units.

OE Medium Truck: A nearly 24 per cent increase to approximately 3 million units.

Replacement P-Metric: Increase of approximately 9 million units in 2010 to nearly 199 million units, representing a growth rate of approximately 5 per cent. Non-China imports are expected to increase by 6 per cent, as well.

Replacement LT-Metric: An increase of 300,000 units to approximately 28 million units total, a gain of nearly 1 per cent.

Replacement Medium Truck: Up approximately 2.6 million units to nearly 15.5 million tyres.

 

TIRE STORES IN SPOKANE AREA RUNNING OUT OF WINTER RUBBER

It's just the beginning of the winter season, and local tire suppliers in the Spokane, Wash., area are already seeing a rubber shortage, KXLY Spokane reported. What's to blame for the shortage? Apparently, manufacturers didn't make enough tires this year, and now local suppliers are starting to feel the pinch. Last year's mild winter and sluggish economy meant manufacturers didn't want to risk producing tires that wouldn't sell. Now local businesses are starting to see a shortage. Tire Store service manager Cal Whitfield says a lot of tire manufacturers have cutback their tire production, some of them down to 30 percent of what they were a year ago. Tire-Rama on Hamilton in Spokane says it only received 25 percent of its order from manufacturers for the winter season. As a result, the store has run out of popular Dodge Caravan and Grand Jeep Cherokee tire sizes. Experts say once inventories disappear, it's hard to get more tires since orders are typically placed a year before the winter season.

 (KXLY Spokane [www.kxly.com] - Spokane, Wash. - Dec. 2)

 

Nov. sales jump 17% as market gains strength

Detroit 3, others rise while Toyota slips

Jesse Snyder and David Barkholz - Automotive News -- December 1, 2010 - 10:55 am ET

U.S. car and truck sales jumped 17 percent last month, raising hopes the industry will end 2010 on a high note while creating momentum for the new year.

Light vehicle sales rose to 873,407 units in November, for the market's 11th advance in the past 12 months. The industry's sales total through November -- 10.45 million -- has now topped 2009's full-year mark of 10.43 million.

For the second consecutive month, U.S. sales reached an annual selling rate of 12.26 million units, according to AutoData Corp. A year ago, light vehicles sold at an annual rate of 10.86 million units.

Analysts cited month-end deals for luring consumers to showrooms last month. Pickup trucks, crossovers and larger vehicles are also selling in higher numbers, according to Edmunds.com. New or redesigned models also helped sales at VW, Nissan, Hyundai and other automakers.

At Ford Motor Co., new car and truck demand jumped 20 percent from a year earlier. GM's total sales rose 12 percent; its four surviving brands were up 21 percent.

The Chrysler Group said November new vehicle demand rose 17 percent. A 58 percent surge at Jeep and robust Ram truck sales helped the automaker offset double-digit declines at the Chrysler and Dodge brands..

Ford announced today it plans to increase first-quarter production in North America by 11 percent to 635,000 units, compared with the first quarter of 2010. Ford also expects average transaction prices to increase in coming months -- in another sign that the industry is rebounding from last year's 27-year sales lows.

Sluggish job growth, a depressed housing market and overall economic jitters have produced a slow but steady rebound in new car and truck sales. But the pace of the sales uptick has often been disappointing.

Gaining traction

GM officials today predicted that a gradual economic recovery and pent-up consumer demand would continue to power a rebound in the new-vehicle market.

"The economy is continuing to gain traction," said Jim Bunnell, general manager of U.S. sales for GM. "We believe we will see meaningful job creation in the coming months."

The Hyundai Group, including Kia, reported a November sales increase of 46 percent. Demand rose 21 percent at American Honda. Nissan Motor Co. posted a 27 percent gain, while November sales rose 49 percent at Porsche and 22 percent at Jaguar Land Rover.

But Toyota, despite higher spending on incentives from a year earlier, said combined sales of Toyota, Lexus and Scion models slipped 3 percent last month to 129,317 units.

Toyota's results illustrate the difficulties the company still faces in winning back U.S. consumers, more than a year after starting recalls that rocked its reputation for quality and safety.

Aside from Toyota and Mazda (up 7 percent), every automaker posted double-digit sales gains last month.

“GM's sales were better than we expected,” said Rebecca Lindland, director of strategic review for IHS Automotive, which forecast GM sales to be 162,000 for the month. “They aren't blowing the doors out, but it's a slow, steady recovery.”

Ford's 20 percent gain factored November 2009 sales from Volvo. Without the Swedish unit that Ford has since sold, the year-over-year increase in November for the Ford, Mercury and Lincoln brands was 24 percent.

At GM, Buick led the way with a 36 percent increase, and GMC advanced 30 percent. Cadillac gained 21 percent and Chevrolet was up 18 percent.

Through November, those brands have sold nearly 103,014 more vehicles than GM sold for the same period in 2009, when it had eight brands.

Nearly all GM vehicles sold in November were 2011 models, allowing the brands to continue to increase average transaction prices, said Don Johnson, GM vice president of U.S. sales operations. Through November, the average price is up $1,300 from a year ago.

Incentives averaged 10.4 percent of GM transaction prices, about the same percentage as the rest of the industry, Johnson said.

Volkswagen AG reported a 24.2 percent increase in VW brand sales last month. Jetta sedan sales climbed 49 percent.

“The consumer is crawling back, particularly in the more affluent and higher quality credit segments,” Johnson said.

Sales in the final weekend of November were lifted by Thanksgiving holiday deals sponsored by individual dealers and manufacturers, including Toyota and Nissan, analysts said.

“We're starting to feel better about how the market is going,” said Jessica Caldwell, an analyst at auto sales tracking and shopping service Edmunds.com. “It looks like we're in that slow recovery pattern.”

 

BRIDGESTONE ECOPIA TIRES TO BE EQUIPPED ON NISSAN'S ELECTRIC CAR

Bridgestone announced today (Dec. 3) that it has begun supplying Nissan Motor Co. Ltd. with Ecopia tires for use as original equipment on the Nissan Leaf, an electric car scheduled to go on sale this month. Bridgestone's line of eco-friendly tires, the Ecopia brand, has been specially developed to offer low-rolling resistance, while still maintaining "superior" performance in all areas, including safety, the company said. Ecopia tires were first produced in 1991 through the development of tires for electric vehicles. Since then, Bridgestone has developed a diverse lineup of Ecopia tires, including those for trucks and buses, vans and passenger cars. The Ecopia tires to be equipped on the Nissan Leaf include: the Ecopia EP150, size 205/55R16 91V, for the Japan and European markets, and the Ecopia EP422, size P205/55R16 89H, for the North American market. Sales of the Nissan Leaf are scheduled to begin in Japan and the U.S. this month, and in Europe in early 2011.

 (The Smithers Report - Dec. 3)

 

Indian Commodity Exchange Refutes Price Manipulation Allegations

Created: December 03, 2010 10:05:00 AM

The National Multi-Commodity Exchange of India has dismissed allegations of rubber future price manipulation. Despite claims from Automotive Tyre Manufacturers' Association director-general Rajiv Budhraja regarding “evidence for the price manipulation of natural rubber on the NMCE,” the commodity exchange states prices for the raw material have risen due to an imbalance between demand and supply.

"There has not been any manipulation of natural rubber prices at our exchange. The allegations made by the Automotive Tyre Manufacturers Association are incorrect and baseless,” NMCE CEO Anil Mishra told the Press Trust of India. The ATMA has previously levelled claims of price manipulation against the 2003-launched NMCE, the most recent objection occurring in the second half of October 2010 when the tyre manufacturers’ organisation urged Indian commodity market regulator the Forward Markets Commission to reduce the daily price band from four to one per cent. The ATMA also petitioned the commission to temporarily suspend natural rubber trading on the NMCE.

On October 21 the commission asked the NMCE to explain its position and justify the movement in natural rubber prices, and a reply from the commodity exchange was received two days later. Based on this information, the Forward Markets Commission returned to the ATMA and informed them that its internal investigation “found no clue leading to price rigging on NMCE” and that therefore no action was required. A further ATMA complaint was also rejected with the response that “a four per cent price band is in line with other agri commodities, plantation products and, most importantly, global markets.”

On average some 7,000 tonnes of natural rubber is traded through the NMCE. According to the exchange’s data, the futures price of the December rubber contract has risen 21 per cent to around Rs 200 (£2.80) a kilogram since the launch of the contract in August. Commenting on the ATMA demand for a reduction in the daily price band in order to restrict price manipulation, Anil Mishra responded “the daily price band for natural rubber has been kept lowest at four per cent in India as compared to five per cent in Shanghai and 10 per cent in Singapore. If we reduce from four per cent to one to two per cent, then trade can hardly take place on the exchange."

The latest word from the ATMA is, unsurprisingly, that it will continue to press the issue. “We are not happy with the FMC’s response on our complaint. We will write to the regulator again.” stated Rajiv Budhraja.

 

Spain November car registrations fall 26%

December 1, 2010 11:31 CET

MADRID (Reuters) -- Car sales fell by 26 percent in Spain in November from a year earlier, carmakers association ANFAC said on Wednesday, the fifth month of double-digit declines following the end of government subsidies.

Car sales fell 37.6 percent in October year-on-year.

Government subsidies to help people buy new cars ran out at the start of July, coinciding with an increase in value-added tax.

 

France, Spain, Italy car sales hit by double-digit Nov. declines

December 2, 2010 06:01 CET

PARIS (Reuters) -- Economic woes and the end of scrappage schemes threatened a bleak start to 2011 for Europe's car markets.

While austerity measures and economic concerns will likely hit spending power and consumer confidence in Europe during the coming months, the end of scrapping incentives had a more immediate impact on November automobile sales. Italy, France and Spain reported sales declines while in Belgium, which never had a scrapping scheme, car sales rose 15.4 percent last month.

Italian car sales fell 21 percent year-on-year in November. Thinktank Promotor said Thursday that Italian car sales were unlikely to reach pre-crisis levels until 2014.

Italian foreign carmakers association UNRAE said in a statement that orders reached 160,000 in November, more than 20 percent down from a year earlier.

Sales got a boost late last year as drivers flocked to showrooms before scrapping bonuses ran out, and this comparison effect exacerbated difficult market conditions, UNRAE said.

UNRAE predicted full-year sales of 1.95 million units in Italy, compared with 2.16 million in 2009. "For next year there are no signs of a clear reversal in the trend," it said.

In Spain, where bonuses to boost new-car sales ran out at the start of July, coinciding with an increase in value-added tax, car sales tumbled 26 percent year-on-year in November, Spanish carmakers' association ANFAC said.

"Getting consumer confidence back, reducing the unemployment rate and a return to a more normal credit situation, are fundamental factors to returning the Spanish market to levels more in line with the economic development of the country," ANFAC said in a statement.

France's decline no as bad as expected

Industry association CCFA said French car sales for November dropped 10.8 percent, less than expected.

A 500 euro ($660) scrapping scheme, half the original bonus offered, is still in place in France, while carmakers including domestic rivals PSA/Peugeot Citroen SA and Renault SA are proposing generous money-back offers to drivers.

The imminent end of the scheme helped car sales post a limited fall against a strong November 2009. Last November, just before the scrapping scheme was cut from its initial 1,000 euros, sales surged 48.4 percent from a weak November 2008.

"Drivers are saying to themselves, 'At the end of December it's finished; we have to hurry to order a new car'," said Flavien Neuvy, head of the automobile industry research department at French consumer credit organisation Cetelem.

A CCFA spokesman added: "We have already passed the 2-million-vehicle marker in 11 months, so we could finish the year with 2.2 million registrations."

In the first 11 months 2,023,410 passenger cars were registered, a 2.4 percent dip on the same period of 2009.

Job fears are the main economic factor that will affect car sales in the coming months, said Neuvy.

"If the employment market picks up a little, that will return some confidence to consumers," Neuvy said. French third-quarter unemployment data will be released on Thursday.

Euro zone woes

In India, top carmaker Maruti Suzuki India Ltd. reported a 28 percent rise in November sales, but exports fell 12 percent, with most of those cars bound for Europe.

Overall sales at India's Maruti Suzuki, 54.2 percent owned by Japan's Suzuki Motor Corp,, rose strongly, and it is aiming to tap markets outside Europe.

"The euro zone crisis could affect sales of Maruti Suzuki, which has some exposure to that market, and it is now trying to sell to non-European countries," said Umesh Karne, a research analyst at Brics Securities in Mumbai.

 

Chinese carmakers, Opel and Ferrari plan debuts at the Bologna auto show

Luca Ciferri - Automotive News Europe -- December 2, 2010 06:01 CET

TURIN – The 2010 Bologna motor show will host world debuts of new models from Ferrari, Opel/Vauxhall as well as Chinese automakers Chery Automobile and Great Wall Motor.

Ferrari will unveil the 458 Challenge, the track-only version of its V-8 coupe, while Opel will debut the restylings of the Corsa subcompact hatchback and of the Antara medium SUV.

Peugeot will show the EX-1 sports car concept. The 340-hp, four-wheel-drive electric roadster has broken six world records for electric vehicle acceleration.

DR Automobili, an Italian company that rebadges versions of models built in China by Chery Automobile, will preview the D3 compact hatchback and an electric version of the DR1 minicar.

DR sold 3,649 units in Italy from January to October, up 94 percent on the same period the year before, according to Italian Transport Ministry data.

Another Chinese carmaker, Great Wall, will give European debuts to the Voleex subcompact hatchback, the Steed 5 large pickup and the Kulla, a concept for a city car with extremely rounded surfaces.

Land Rover will use Bologna for the European debut to the Evoque five-door SUV.

Italian auto retailer Martin Motors will display the China-built Bubble minicar that looks similar to the Smart ForTwo.

At the 2007 Bologna show, Daimler AG, which owns Smart, took legal action to prevent Martin Motors from unveiling the Bubble minicar because of its similarity to the ForTwo.

After a legal battle, Martin Motors said it is now allowed to sell a slightly tweaked Bubble in Europe.

The 3300mm-long, four-seat Bubble, built by Chinese carmaker Shuanghuan, sells for 11,400 euros ($15,000) in Italy, a price that includes air conditioning, power windows and alloy wheels.

Electric cars

Visitors to the show, which runs from Dec. 4-12, will be able to road test electric cars from automakers such as Citroen, Mitsubishi, Nissan, Peugeot, Renault and Smart on an indoor urban circuit, which is as big as a soccer field.

The Bologna show is bouncing back from a crisis last year when major automakers, including Fiat, pulled out due to the recession. The 2009 show was curtailed by four days and featured only car and motorcycle races and attracted 460,000 visitors, half as many as in the previous year.

“This year's show returns to its traditional nine-day calendar and goes on despite the economy not being completely out from the crisis yet. We hope attendance is close to the level seen in 2008,” said Giada Michetti, managing director of the show organizer GL Events Italia.

In 2008, the show attracted about 970,000 visitors.

Missing from this year's show are Asian brands Honda, Lexus, Mazda, Subaru, Suzuki and Daihatsu, as well as General Motors Co.'s Chevrolet.

From Europe, Lamborghini, Jaguar and Saab are skipping the event. BMW and Mini withdrew from the show in 2008.

 

Porsche investors back $6.5 billion share sale for VW merger

December 1, 2010 06:01 CET

STUTTGART (Bloomberg) -- Porsche Automobil Holding SE investors approved plans for a 5 billion euro ($6.5 billion) stock sale to reduce the sports car maker's debt as it prepares to combine with Volkswagen AG.

Shareholders at the company's annual meeting voted in favor of raising the funds, half of which will come from the Porsche and Piech families, who control the common stock. Of preferred shareholders voting, 88 percent supported the measure, the carmaker said late Tuesday.

"All stakeholders will benefit as a result,” said VW CEO Martin Winterkorn, who also runs Porsche's holding company. “You are playing a key role in two of the companies best placed to master the challenges of tomorrow's automotive industry.”

Porsche agreed to combine with VW in August 2009 after a failed attempt by Porsche to gain control of VW. Proceeds from Porsche's share sale, which the company aims to complete by May 30, will be used to help pay back a 2.5 billion-euro bank loan expiring at the end of June.

“The capital increase is a necessary step to take if the merger with VW is to be achieved,” Jens Meyer, a fund manager at Frankfurt-based Deka Investment GmbH, said at the meeting. “A merger is the only chance to be able to participate in the carmaker's healthy long-term financial basis.”

Porsche racked up more than 10 billion euros of debt in its unsuccessful attempt to control VW. Volkswagen now owns 49.9 percent of Porsche's carmaking operations. Costs linked to Porsche's purchase of VW stock in the takeover bid led to two consecutive years of net losses.

Shares Advance

Holders of common stock unanimously backed the capital increase at Tuesday's meeting. The vote needed the approval of 75 percent of common and preferred shareholders present to pass.

The deadline for the share sale would be extended until Aug. 30 should any investor lawsuits against the carmaker result in a delay, Chief Financial Officer Hans Dieter Poetsch said.

“The capital increase should prove a decisive step to reduce our company's liabilities,” said Poetsch, who also holds VW's top finance post.

Merger delays

Even though shareholders backed the capital increase, the merger, originally scheduled for completion in the second half of 2011, may stall until the resolution of tax disputes in Germany and lawsuits in the U.S., Winterkorn said.

U.S.-based short sellers of VW stock have sued Porsche, claiming the carmaker secretly piled up VW shares and later caused the investors to lose more than $1 billion. A U.S. court will determine in January whether the case may proceed.

“The holders of preferred shares are the big losers,” said Christian Strenger, a former management board chairman at DWS Investment GmbH. “The Porsche and Piech families are to be blamed that Porsche got engulfed in Icarus-style financial speculation.” 


NEXEN TIRE AMERICA TO HIKE PRICES UP TO 8% ON JAN. 1

Nexen Tire America of Diamond Bar, Calif., will raise prices up to 8 percent, with in-line adjustments, due to rapid increase in the cost of raw materials. The price increase will apply immediately on all factory-direct container orders for January production or thereafter. The price increase will apply to all warehouse orders, effective Jan. 1.

 (Nexen Tire America Inc. [www.nexentireusa.com] - Diamond Bar, Calif. - Dec. 1)

 

RMA: 2010 U.S. TIRE SHIPMENTS TO INCREASE 9%; GROWTH MODERATE IN 2011

U.S. tire shipments are projected to increase by more than 9 percent in 2010 to 284 million units, up 24 million from 2009. This is due to sharp increases in OEM passenger and commercial truck tires, as well as in passenger and commercial truck replacement shipments, according to the Rubber Manufacturers Association. An additional 2-percent growth in tire shipments is forecast for 2011, reaching nearly 290 million units. Passenger OE tire shipments are anticipated to increase by 11 million units, or nearly 44 percent, in 2010. New vehicles sold in the U.S. are projected to increase by 6 percent in 2011. OE lighttruck tires will experience a 31-percent increase, or 900,000 units in 2010 to nearly 3.7 million units. Little or no growth is anticipated for 2011. OE medium/wide-base/heavy on-highway commercial truck tires are projected to increase nearly 24 percent to 3 million units in 2010, up 600,000 units. This sector is expected to continue rebound in 2011, with OE shipments projected to gain about 700,000 units.

 (Rubber Manufacturers Association [www.rma.org] - Washington, D.C. - Dec. 1)

 

MORE ON U.S. TIRE SHIPMENTS

Replacement tire shipments will also experience significant growth in 2010, according to the RMA's Tire Market Analysis Committee. Replacement passenger tire shipments are projected to increase about 9 million units to nearly 199 million, up 5 percent from 2009. However, growth in 2011 will be tempered, resulting in a less than a 2-percent increase to nearly 3 million units. Replacement light-truck tire shipments are forecast to increase by 300,000 units to about 28 million units total, a gain of nearly 1 percent. Little or no increase is anticipated in 2011. Replacement medium/wide-base/heavy on highway commercial truck tire shipments are anticipated to increase by about 2.6 million units in 2010 to nearly 15.5 million units. This market is expected to increase by about 600,000 units to nearly 16 million units in 2011.

 (Rubber Manufacturers Association [www.rma.org] - Washington, D.C. - Dec. 1)

 

Bridgestone Aims to Halve Rubber Use by 2020 as Record Prices Raise Costs

By Aya Takada and Yasumasa Song - Dec 2, 2010 6:04 AM GMT+0100

Bridgestone Corp., the world’s largest tiremaker, expects to cut rubber consumption by 50 percent in the next decade after prices more than quadrupled to a record from their 2008 low.

Technology being developed will halve use of natural and synthetic rubber in each Bridgestone tire without affecting product quality, Masayuki Ishii, general manager at the corporate communications division, said in an interview.

Bridgestone, Michelin & Cie. and Goodyear Tire & Rubber Co. are seeking to control costs after the price of rubber used in tires soared because of floods in Thailand, the top producer, and growing demand in China, the biggest user. Tokyo-based Bridgestone raised U.S. prices last month for the third time this year. The group may struggle to pass on costs in deflation- hit Japan, said Satoru Takada from research company TIW Inc.

“The company is moving in the right direction by reducing risks from raw materials as world auto demand keeps expanding, buoying prices,” said analyst Takada in Tokyo. “Other tiremakers will probably follow suit,” he said.

Michelin’s full-year expenses will rise by 600 million euros to 650 million euros because of higher raw-material costs, the company said in October. Goodyear, the largest U.S. tiremaker, expects raw-material costs to jump 35 percent for the fourth quarter. Rich Kramer, the chief executive officer, said he is “aggressively pursuing” synthetic rubber options.

Usage Cut

Bridgestone’s new technology will reduce the amount of all tire materials, including natural and synthetic rubber, incrementally over 10 years without cutting performance, Ishii said, declining to elaborate.

The company will use 1.77 million metric tons of natural and synthetic rubber for tire production this year, up 24 percent from 2009. Of the total, 1.23 million tons, or 69 percent, is for output overseas, he said.

“It’s quite reasonable to cut the use of raw materials as they become expensive,” Ishii said in Tokyo on Nov. 30. “Our company has the technological ability to realize that.” Company President Shoshi Arakawa wants to achieve the 50 percent cut in less than 10 years, he said.

Natural rubber represented 28.9 percent of tire weight in Japan last year, while its synthetic rival accounted for 21.4 percent, according to the Japan Automobile Tyre Manufacturers Association. Bridgestone’s use of natural rubber is larger than the industry average as it produces more heavy-vehicle tires, said public relations manager Kaoru Tomizawa.

Wider Deficit

Global consumption of natural rubber will outstrip supply by 313,000 tons this year, the most since 2006, Goldman Sachs Group Inc. predicted in a November report, revising its September outlook for an 82,000-ton deficit.

Goldman Sachs raised its price forecast to $4.40 per kilogram next year from $3.60, and to $4.60 per kilogram in 2012 from $3.80, the report said. Rubber for July delivery gained 0.9 percent to $4.405 a kilogram in Singapore today. The most-active contract climbed to a record $4.489 on Nov. 11, more than four times the low of $1 in December 2008.

“Supply is unlikely to grow substantially at this stage due to falling yields as trees age as well as the fact that many farmers are shifting from rubber into palm oil,” Yuichiro Isayama and three other Goldman Sachs analysts said. “We’re not expecting supply to increase by a significant degree until 2013- 2014, when trees planted in 2006-2007 start to contribute.”

China’s Demand

Global tire shipments will keep increasing as economic expansion and income growth, especially in Asia, boosts vehicle sales, Bridgestone Director Yujiro Kanahara said in the same interview. World demand for passenger car tires may grow 20 percent by 2015 from last year, while demand for truck and bus tires will expand by 50 percent, he said.

Growth in China will be faster than other markets in the next five years with the company expecting an 80 percent expansion in tire demand, Kanahara said. India will grow at the second-fastest pace of 50 percent for passenger car tires.

China’s passenger-car sales rose at the fastest pace in six months in October as government incentives for fuel-efficient cars boosted buying in the world’s largest market. Wholesale deliveries of cars, sport-utility vehicles and multipurpose vehicles increased 27 percent from a year earlier to 1.2 million, according to the China Association of Automobile Manufacturers.

May-delivery rubber on the Tokyo Commodity Exchange gained 2.2 percent to 371.3 yen per kilogram ($4,416 a ton) at 1:50 p.m. local time. The price for the most-active contract reached a 30- year high of 383 yen on Nov. 11.

Bridgestone operates 47 tire plants worldwide. The company held a 16.2 percent share in the global tire market in 2009, followed by Michelin with 15.5 percent, according to Tire Business newspaper.

 

Allen Tsaur: 80% of Chinese Tyres Not Ready for Labelling

Created: December 01, 2010 12:39:00 PM

Despite tough external conditions Cooper Chengshan’s top line growth is said to be “progressing well” in 2010 and the firm’s “amazingly strong” domestic truck and bus tyre market growth in the first quarter of this year is a key highlight of this performance. Meanwhile the company’s passenger car tyres sales have reportedly continued on their “relatively consistent” recent trajectory.

Looking forward, Cooper Asia general manager and Cooper Chengshan boss Allen Tsaur reports that the company is well prepared for the forthcoming 2012 tyre labelling legislation across all its brands. From Cooper Chengshan’s perspective the new laws are a good thing that “drives us forward.” However, this is clearly not the case across the board in China, with Tsaur reporting that an estimated 80 per cent of tyre suppliers are not up to scratch when it comes to labelling legisaltion preparedness. Out of roughly 300 tyre manufacturers currently operating in China, only the top 30 are said to be of a “good quality” that is compatible with exports into the mature markets. Of these, only the top 10 (including Cooper Chengshan) are already set for the 2012 rules.

More are likely to follow these between now and the implementation of the rules in November 2011, but the remaining perhaps 80 per cent are expected to simply switch distribution to what can only be described as less legally demanding market destinations such as Africa.

Tyre manufacturer promotes Starfire export brand, reports continued growth despite downturn

To put the company’s recent growth figures into context, Tsaur explained that Chinese domestic market’s truck and bus tyre sales are usually slow during this period because of the extended holiday taken by most people to mark Chinese New Year. As has already been mentioned the truck tyre market results during the first part of 2010 were said to have been – up between 40 and 50 per cent over previous year – but Tsaur contextualises this by pointing out that in 2008 production was something like 70 per cent of a normal first quarter’s production; in 2009 it was the peak of the recession (although the company still performed well).

The company’s own branded domestic retail business could well have been responsible for some of the increase in the company’s sales. According to Tsaur, the company’s domestic retail business grew 35 per cent, while truck and bus retail grew 15 per cent. This trend is also reflected in the numbers of brand points of sale in the marketplace. During 2010 the number of passenger car tyre points of sale selling Cooper Chengshan-produced tyres increased to 800, while the number of equivalent truck tyre points of sale swelled to 2000. (It is worth pointing out that the truck tyre depot total benefits from the pre-existing Chengshan truck and bus tyre retail network).

US Roadmaster tyre sales more than doubled during 2010

Sales of the company’s Roadmaster tyre in the US – which Tsaur says characterises the “safety and quality” of the company’s products reportedly more than doubled during 2010.

The Chinese truck and bus tyre market is dominated by domestic players with brands produced by Giti Tire and Hangzhou Zhongce duking it out for control of the market. However, once again due to the fact that Cooper Chengshan has access to Chengshan’s pre-joint venture market share, this company is also in a strong position in this sector.

In order to capture more market share and to keep up with demand, Tsaur reports that Cooper Chengshan has launched and is launching “many new sizes and products.” This means over 100 specifications in the passenger car segment and between 40 and 50 in the truck and bus segment.

Like the wider tyre business, especially in the mature markets such as Europe, Cooper Chengshan is said to have experienced a slight de-segmentisation effect, however because of the scale of the operation this hasn’t really impacted the business. Due to the fact that the business only really started exporting Cooper brand products to Europe in 2008, the Cooper Chengshan has largely avoided catching a cold from the frosting over of demand in Europe during 2009 and 2010. Instead it more a question of introducing sales to these markets rather than seeing capacity affected by any kind of downturn in orders.

The Starfire export brand was front and centre on the Cooper Chengshan stand at Reifen China this year, with the company hoping to increasing sales of the product that is produced in some of the same factories of its more illustrious cousin.

According to Allen Tsaur, Starfire tyres are developed and designed by the same teams that work on the Cooper products, but these tyres are clearly aimed at a different price range.

And likewise they are aimed at different type of customer and consumer. The products, the vast majority of which fall within the 13 – 16 inch size range, are squarely pitched at the “bread and butter” section of the market, leaving the high performance and ultra-high performance fitments open to the Cooper flag brand. As a result of this differentiation in market approach, the Starfire brand is positioned at a different price point – 15 per cent below the Cooper brand.

 

Winter Tyres – it’s Decision Time, says Kwik-Fit Fleet

Created: November 30, 2010 10:02:00 AM

In the weeks since the September launch of its first winter tyre programme, Kwik-Fit Fleet has reported considerable demand. At present the fast-fitter is fitting more than 2,200 winter tyres a week and soon demand may outstrip supply in Britain’s previously sluggish winter tyre market. And with demand for tyres increasing globally, supplying our market with sufficient fresh stocks may prove no mean feat.

“We have been advising our fleet customers since September to order winter tyres if they require them,” commented Kwik-Fit fleet sales director Peter Lambert. “While some organisations were quick off the mark, others have still to make a final decision. The rate at which our technicians are fitting winter tyres is growing daily, however with the first serious winter weather having arrived, the time has come to be decisive.” Lambert added that since the company announced its winter tyre programme it has been “inundated” with requests from fleet operators to have their vehicles equipped with tyres that are better suited to cold weather conditions.

“We have ordered thousands of winter tyres from our suppliers and they are in stock at our National Distribution Centre in Northamptonshire,” Lambert continued. “However, to arrange for the appropriate tyres to be delivered to a convenient Kwik-Fit centre and for customers to make time in their busy schedules to have them fitted takes a few days. We would therefore urge prompt ordering to avoid disappointment.”

 

ECHA: TODAY IS 'REACH' DEADLINE FOR REGISTERING CHEMICALS

The European Chemicals Agency (ECHA), which is responsible for implementing the Registration, Evaluation, and Authorization of Chemicals (REACH), reminds companies that today (Nov. 30) is the first deadline for registration under the REACH legislation. ECHA estimates that more than 4,700 chemicals produced at the 1,000 ton/year level will need to be registered by Nov. 30, 2010. As of today, 3,662 substances have been logged. According to the rules, substances that miss today's deadline will be withdrawn from the market until they are registered. ECHA will announce on Wednesday (Dec. 1) the statistical results of today's registration deadline.

 (European Chemicals Agency [http://echa.europa.eu] - Helsinki, Finland - Nov. 30)

  

Bridgestone links to consumers with education about winter tires 

Publish date: Nov 30, 2010 - Source: Motor Age

Bridgestone's Blizzak Chill Zone link educates consumers about driving in winter conditions, including tips from experts at the company’s Winter Driving School. The site also contains information about its winter tires.

Introduced in North America in 1992, the Blizzak line pioneered the dedicated, studless snow and ice tire for stability and handling in adverse winter driving conditions, according to Phil Pacsi, vice president of consumer tire marketing.

“The ‘Official Tire of Winter’ title emphasizes that Bridgestone remains a leader in developing proven and reliable winter tire technology and products to meet the ever-changing needs of consumers,” says Pacsi. “We’re proud to say the Bridgestone Blizzak family of winter tires is available in more sizes to fit more vehicles than any other winter tire sold in North America.”

The tread compound is more pliable than traditional tires, remaining flexible in cold temperatures, he notes. When water freezes to ice, tiny irregularities form on the surface. If the tread compound is rigid, the tire will tend to slide across these irregularities. Flexible tread compounds incorporated into Blizzak winter tires “dig into” jagged surfaces, providing drivers better control of their vehicle, Pacsi points out.

If you are in a climate where winter conditions are commonplace for three or more months of the year, the Blizzak winter tires are a smart investment, he says. Depending on the customer’s driving habits, one set can last several winters.

All of the Blizzak tires have the snowflake-on-the-mountain symbol on the sidewall, meaning they provide a high level of snow traction.

The line has 13 patterns and more than 200 applications to fit most vehicles on the road today.

They include the DM-Z3, DM-V1, MZ-03, WS60, WS70 and the W965 – all featuring the company’s Multicell tread compound. The LM-25, LM-25 4x4, LM-50 RFT and the LM-60 contain a conventional winter driving compound.

For more information visit www.bridgestonetire.com/winterdriving.

 

CTA TO RAISE PRICES IN U.S. UP TO 8% ON JAN. 1

Continental Tire the Americas (CTA) is announcing today (Nov. 30) a price increase on all Continental, General and Ameri*Steel-brand truck tires of up to 8 percent. This increase is effective Jan. 1, and affects replacement sales channels in the U.S. The increase is in response to the continued escalation of the raw material and energy costs associated with the production of radial truck tires, the company said.

 (Continental Tire the Americas [www.conti-na.com] - Fort Mill, S.C. - Nov. 30)

 

Porsche investors back $6.5 billion share sale for VW merger

December 1, 2010 06:01 CET

STUTTGART, Germany (Bloomberg) -- Porsche SE investors approved plans for a 5 billion-euro ($6.5 billion) stock sale to reduce the sports-car maker's debt as it prepares to combine with Volkswagen AG.

Shareholders at the company's annual meeting voted in favor of raising the funds, half of which will come from the Porsche and Piech families, who control the common stock. Of preferred shareholders voting, 88 percent supported the measure, the carmaker said late Tuesday.

"All stakeholders will benefit as a result,” said VW Chief Executive Officer Martin Winterkorn, who also runs Porsche's holding company. “You are playing a key role in two of the companies best placed to master the challenges of tomorrow's automotive industry.”

Porsche agreed to combine with VW in August 2009 after a failed attempt by Porsche to gain control of VW. Proceeds from Porsche's share sale, which the company aims to complete by May 30, will be used to help pay back a 2.5 billion-euro bank loan expiring at the end of June.

“The capital increase is a necessary step to take if the merger with VW is to be achieved,” Jens Meyer, a fund manager at Frankfurt-based Deka Investment GmbH, said at the meeting. “A merger is the only chance to be able to participate in the carmaker's healthy long-term financial basis.”

Porsche racked up more than 10 billion euros of debt in its unsuccessful attempt to control VW. Volkswagen now owns 49.9 percent of Porsche's carmaking operations. Costs linked to Porsche's purchase of VW stock in the takeover bid led to two consecutive years of net losses.

Shares Advance

Holders of common stock unanimously backed the capital increase at Tuesday's meeting. The vote needed the approval of 75 percent of common and preferred shareholders present to pass.

The deadline for the share sale would be extended until Aug. 30 should any investor lawsuits against the carmaker result in a delay, Chief Financial Officer Hans Dieter Poetsch said.

“The capital increase should prove a decisive step to reduce our company's liabilities,” said Poetsch, who also holds VW's top finance post.

Merger delays

Even though shareholders backed the capital increase, the merger, originally scheduled for completion in the second half of 2011, may stall until the resolution of tax disputes in Germany and lawsuits in the U.S., Winterkorn said.

U.S.-based short sellers of VW stock have sued Porsche, claiming the carmaker secretly piled up VW shares and later caused the investors to lose more than $1 billion. A U.S. court will determine in January whether the case may proceed.

“The holders of preferred shares are the big losers,” said Christian Strenger, a former management board chairman at DWS Investment GmbH. “The Porsche and Piech families are to be blamed that Porsche got engulfed in Icarus-style financial speculation.”

BRIDGESTONE BUYS RSS3; CHINA EYES WAREHOUSE GOODS

Bridgestone Corp. bought some RSS3 rubber for forward shipments, but top consumer China was chasing cheaper Thai grades from its own warehouses, dealers said today (Nov. 30), IBTimes.com reported. Indonesia's SIR20 grade changed hands late on Monday (Nov. 29) at $4.24 a kg for January shipment, and there were still inquiries for December cargo, which was offered at higher prices around $4.25 a kg. RSS3 was quoted at $4.32 a kg today, down from a lifetime high at $4.40 offered last week, but dealers said Thai grades already stored in warehouses in Shanghai were a few cents cheaper. Bridgestone bought RSS3 at $4.30 in deals done late on Monday. Natural rubber prices have hit an all-time high above $4 a kg in Southeast Asia due to tight supply blamed on a combination of heavy rains and dry weather in producing countries, which helped spur rallies in Tokyo and Shanghai rubber futures.

 (IBTimes.com - Singapore - Nov. 30)

 

Bridgestone Plans to open 200 Select shops in India

Bridgestone has been expanding its “Select Super” concept stores in India. Currently Bridgestone has Select Super stores across cities in India and has plans to extend the number upto 200 by the end of 2010

India Infoline News Service / 16:37 , Nov 30, 2010

Bridgestone, the world’s no.1 Tyre & Rubber manufacturer, announced its plans to open 200 Select Shops by the end of 2010.

As a part of its aggressive growth plan in the Indian Market, Bridgestone has been expanding its “Select Super” concept stores in India. Currently Bridgestone has Select Super stores across cities in India and has plans to extend the number upto 200 by the end of 2010.

Part of this process it opened on Monday two exclusive Select Super showroom in Kotirampur in Karimnagar and “Auto Wheels” in Ongole in Andhra Pradesh.

According to Vaibhav Saraf, GM (Sales & Marketing) the Select Super stores boasts of an exclusive Bridgestone retail “Identity and Sales” in line with the global retail philosophy adopted successfully across the world.

Venkitachalam, DGM (South) said that we are back with another customer friendly, smart and stylized interior, a wide product range and modern services. Bridgestone India launches “Auto Wheels” introducing speed maintenance in Ongole”

These two showrooms are one of the largest tyre showrooms for our customers in India where they can see and feel the Bridgestone exclusivity, sophistication and progressiveness. It hosts several customer friendly facilities such as 01. Welcome and customer friendly environment 02. Smart and styled interiors, 03. Unparalleled customer service, 04. Wide Product Range, displays and designs, 05. Air conditioned customer lounge with free internet access , magazines and refreshments.

The other products and services available at the store are: 01. Wheel Alignment , 02. Wheel Balancing, 03. Alloy Wheels, 04. Nitrogen Gas Inflation, 05. Batteries, 06. Rim Straightener and 07. Run Flat Tyre Changer

Our brand essence “Serving society with superior quality.” is not only valid for our products but also for Bridgestone service standards which can be experienced at “Select Super” retail outlets, he informed.

 

ASIA SBR MAY SOON BREACH $3,000/TON ON STRONG DEMAND

Spot prices of styrene butadiene rubber (SBR) in Asia may remain on an uptrend, possibly breaching $3,000/ton (2,280 euros/ton) in January 2011, as demand continues to outstrip supply, industry sources said today (Nov. 30), ICIS.com reported. Non-oil grade 1502 SBR prices are currently hovering at around $2,800/ton CFR (cost and freight) Asia, up $200-300/ton from late October, according to ICIS. Taking into account the strong demand and limited supply, producers hiked their spot offers for non-oil grade SBR 1502 by $100-200/ton to $2,900-3,000/ton CFR Asia for December and January shipments, market sources said. Demand was being fueled by downstream tyre makers switching to the use of SBR from the more expensive natural rubber in tyre production, according to SBR producers. TSR 20 natural rubber grade prices for January delivery were at $4,200/ton at the close of trading on Monday (Nov. 29), after rising to as high as $4,420 on Nov. 10.

 (ICIS.com - Singapore - Nov. 30)

 

RHEIN CHEMIE, SHIN HAN CHEMICAL AGREE ON TIRE TREAD MARKING INKS

Mannheim-based Rhein Chemie Rheinau GmbH and Shin Han Chemical Co. Ltd. of South Korea have concluded a licensing agreement on tire tread marking inks. This allows Rhein Chemie to manufacture and sell these tire tread marking inks using know-how from Shin Han Chemical in nearly every country around the world.

Excepted are only North and South Korea, China, Hong Kong, Indonesia, Japan, Cambodia, Laos, Myanmar, Macao, Singapore, Vietnam, Taiwan and Mongolia. Rhein Chemie markets the tire tread marking inks under the name Rhenomark MP. Like the Rhenodiv release agents from Rhein Chemie, Rhenomark MP is also water-based, "exhibits excellent covering power, brilliance, bonding strength and water resistance," the company said. The ink also boats a very short drying time, which means the production process does not need to be modified. Rhein Chemie serves the tire industry with a broad portfolio, including accelerators, standard and specialty chemicals, anti sun-check waxes, processing promoters, release agents and tire marking inks.

 (Rhein Chemie Rheinau GmbH [www.rheinchemie.com] - Mannheim, Germany - Nov. 30)

 

India May Cut Rubber Import Duty as Demand for Tires Soars, Khullar Says

By Tushar Dhara and Thomas Kutty Abraham - Dec 1, 2010 9:38 AM GMT+0100

Rising incomes in the world’s second-most populous nation may help more than double annual car sales to 3 million by 2015, according to the government. Photographer: Kuni Takahashi/Bloomberg

India, the fourth-biggest producer of natural rubber, may allow imports of as much as 100,000 metric tons at a lower duty to meet surging demand for tires as rising incomes boost car sales, Trade Secretary Rahul Khullar said.

The finance ministry may make a decision after the end of the current session of parliament which runs to Dec. 13, Khullar said in an interview in New Delhi yesterday. The trade ministry has recommended imports at a concessional rate for a maximum of 100,000 tons and tax changes on tire imports, he said, declining to elaborate. Rubber imports are taxed at 20 percent.

Rising incomes in the world’s second-most populous nation may help more than double annual car sales to 3 million by 2015, according to the government, boosting demand for natural rubber. Prices in India reached a record last month on concern that the low-output season in Southeast Asia will worsen a deficit.

“Domestic production is not going to increase dramatically, demand is going through the roof because factories are being set up to make radial tires,” Khullar said. “The pressure on prices will continue tight through next year, until you resolve the availability issue.”

Bridgestone Corp. and its Indian rivals including Apollo Tyres Ltd. and MRF Ltd. are investing $3 billion in plants to meet demand that’s forecast by Automotive Tyre Manufacturers’ Association to expand 10 percent to 106 million tires in the year to March 31. Rubber makes up 42 percent of raw material costs, according to the manufacturers’ group.

Stocks Rally

Tire makers’ shares jumped in Mumbai trading. Apollo gained as much as 2.7 percent to 67.9 rupees, after losing 7.7 percent last month. JK Tyre & Industries Ltd. added as much as 3 percent to 149.4 rupees and MRF climbed 3 percent to 8,100 rupees.

Futures on the Tokyo Commodity Exchange reached a 30-year high of 383 yen on Nov. 11 as rain in Thailand, Indonesia and Malaysia, the top three growers, interrupted tapping and lowered production. May-delivery rubber on the Tokyo Commodity Exchange gained as much as 1 percent to 363.8 yen per kilogram ($4,351 a ton) before settling at 363.5 yen.

Passenger-vehicle sales in India in October increased 38 percent from a year ago to a record 231,957 units, the Society of Indian Automobile Manufacturers said on Nov. 10. About 1.4 million units were sold in the April-October period, compared with 1.53 million for the whole of the last fiscal year, according to the group.

“Demand-supply gap has been widening over the past two to three years because of stagnant rubber production and rising car sales,” said Vaishali Jajoo, an analyst with Mumbai-based Angel Broking. “There will be imports in the coming years if there’s no fresh supply and the auto sector continues to do well.”

She has a “accumulate” rating on Apollo and a “buy” recommendation on JK Tyre.

Imports in the year to March 31 may exceed 200,000 tons, from 170,048 tons a year earlier, tire makers association’s Director General Rajiv Budhraja said on Nov. 11. Natural-rubber output may drop for a second straight month in November after falling 7.6 percent to 82,000 tons in October, as rains hinder tapping in Kerala, India’s top producer, he said.

Purchases surged 81 percent in October to 18,148 tons, according to the state-run Rubber Board, as tire companies stepped up purchases to bridge the shortage.

 

GERMAN PARLIAMENT AMENDS LAW AFFECTING WINTER TYRES

The Upper House of the German Parliament on Friday (Nov. 26) adopted an amendment to the German Road Traffic Regulations, according to the German Transport Ministry. Under specified circumstances, winter tyres will be mandatory in Germany: In case of "ice, packed snow, slush, black ice or frost," vehicles will only be permitted on the roads if they are equipped with winter or all-weather tyres, bearing the specific indentifying marks. Even though more than 80 percent of car owners in Germany already regularly change the tyres on their vehicles as the cold weather approaches, an additional surge in demand can be expected in the coming weeks. The new regulation is presumed to come into force by mid-December.

 (German Transport Ministry - Bonn, Germany - Nov. 26)

 

WINTER TYRE SHORTAGE IN U.K., AS INSURERS PUSH UP PREMIUMS

Motorists looking for extra grip in the cold snap are being frustrated, not only by a major shortage in winter tyres, but also by insurers increasing premiums for fitting them, AutoExpress.co.uk reported. After last season's heavy snow falls, demand for winter rubber has boomed, catching makers on the hop. One motorist from Gloucester was unable to source patterns from Goodyear, Dunlop or Continental, trying a half-a-dozen retailers, plus more online. Dan Davis of wholesaler Malvern Tyres said: "None of the major makers has anything available, and nothing more coming in until January." Continental has delivered nearly 400 percent more winter tyres to the U.K. in October than in the same period in 2009. A spokesman for Goodyear said: "We have experienced shortages in some sizes due to extreme demand, but are increasing our production." Meanwhile, some insurers are failing to spot the benefit, and are raising premiums.

 (AutoExpress.co.uk - United Kingdom - Nov. 29)

 

EU COMMERCIAL VEHICLE REGISTRATIONS INCREASE 6.6% FROM JAN-OCT

The EU market of commercial vehicles (CV) expanded 6.6 percent to 1,453,202 new registrations from January to October, mainly lifted by the demand for vans, according to the European Automobile Manufacturers' Association (ACEA). In October, new CV registrations rose 12 percent, continuing an upward trend that began in March. Also in October, 125,914 new vans were registered in the EU, up 7.4 percent from October 2009. Ten months into the year, the EU totaled 1,224,023 new van registrations, up 8.5 percent from the same year-ago period. In the heavy-truck segment, 16,628 new vehicles were registered in October, up 53.7 percent from October 2009. From January to October, new heavy-truck registrations amounted to 135,792 units, down 1.4 percent from last year's period. In October, truck registrations were up 47.7 percent, while they were down slightly (-0.6%) from January to October. The buses and coaches segment was the only one to decline in October (-5.8%), while cumulative figures from January to October were down 11.8 percent.

 (European Automobile Manufacturers' Association [www.acea.be] - Brussels, Belgium - Nov. 29)

 

Critical Time" For Automotive Components Industry

Created: November 29, 2010 12:00:00 PM  

The UK's automotive components industry is at a critical "tipping point" and could vanish by the middle of the decade without urgent action, members of the Welsh Automotive Forum were warned. It wouldn't run down gradually but, like a ship sinking, would suddenly vanish, said Prof. Garel Rhys, chairman of WAF. "In 2008 the automotive manufacturing sector employed more than 163,000 people but two years later it was down to 116,000 - that's a 28 per cent cut and an absolute blood letting," he said speaking at WAF's winter networking dinner.

"I am concerned it is getting to the point of no return and once the supplier base goes it will not be long before we see the manufacturing base going as well," said Prof. Rhys. "It is a fallacy that the UK cannot compete with other parts of the world. The fact is our unit cost per head is among the best in Europe, our productivity is very high, but the industry needs support from the vehicle makers and the government if it is to survive and prosper. We can put up a very strong case to build any new vehicles in Britain.

"Earlier, guest speaker Bill Parfitt, chairman and CEO of GM UK, had warned that the UK's automotive supply chain "won't be here by 2016 if we carry on as we are" but there were reasons for optimism. Mr Parfitt,  who also heads the Automotive Council's supply chain council, said that the council was close to publishing a ‘road map' showing what manufacturers want and what component suppliers can deliver.

"We know there are big gaps in that road map," he said, adding that he had identified £1.5 billion worth of business that could come back into the UK through GM rising to £6 billion over the next few years. GM doesn't buy enough in the UK but we have to improve the supply base before we do; every pound I spend here makes a big difference to my exposure to foreign exchange fluctuations. We need to dispel the myth that the UK is expensive and start to shift production back from eastern Europe to the UK - the mood is ready to reverse that trend."

He urged suppliers to collaborate on research, development and products and to work more closely with vehicle makers on lead times for new models. "There is not a lot of research and development here and many UK suppliers don't have the expertise to talk to our German R&D teams, for example, so we're going to address that."

 

Toyota Launches Winter Tyre Programme

Created: November 26, 2010 11:10:00 AM

A peek out the window right now may be enough to silence even the most vocal winter tyre sceptic, and the weekend’s weather conditions provide a fitting backdrop for the latest vehicle manufacturer to announce a British cold weather tyre programme. Toyota has launched a trial winter weather tyre scheme in order to help motorists “be best prepared” and is targeting owners of its most popular models, the Auris, Avensis and Corolla, plus the Dyna and Hiace light commercials. Two Toyota centres are handling fitting: Currie Motors in West London and Ron Brooks Toyota in the East Midlands.

“Safety is of prime importance and, following the severe winters we’ve experienced recently, there is a much greater awareness of the benefits of fitting winter weather tyres,” said Toyota customer services director Steve Settle. “We have launched our trial programme to give Toyota owners the chance to gain the right advice and professional assistance to fit appropriate tyres to their vehicle. Although this is a pilot scheme, we will be monitoring its progress closely and there is the potential for it to be expanded to other models and to centres in other regions in the future.”

 

VW to renew CEO's term, report says

Automotive News Europe -- November 29, 2010 06:01 CET

FRANKFURT (Reuters) -- Volkswagen AG CEO Martin Winterkorn is in line to get a fresh five-year term in January to oversee the integration of sports car maker Porsche AG, a magazine reported.

VW's supervisory board members have agreed to extend Winterkorn's contract until 2016, when the CEO would be 69, German magazine Der Spiegel reported on Saturday, without saying where it got the information.

VW, which is Europe's largest carmaker, declined to comment.

In September, the head of VW's works council, Bernd Osterloh, said the supervisory board plans to extend Winterkorn's contract.

“Our chief executive officer has advanced the company in every respect,” Osterloh said at the time.

Apart from folding Porsche into VW's array of nine car and truck brands, VW is planning the construction of new plants in China, the United States and India and aims to expand its cooperation with peer Suzuki Motor Corp., in which VW bought a 20 percent stake for $2.5 billion in December 2009.

Winterkorn had told Der Spiegel in September that he aimed to remain in his position after his current contract expires next year.

Winterkorn has said that his target for VW to overtake Toyota Motor Corp. as the biggest car manufacturer worldwide by 2018 is likely to prove tough.

Winterkorn, who previously was the CEO of VW's Audi luxury unit, took over as CEO Jan. 1, 2007, from Bernd Pischetsrieder. German CEO contracts typically run for a five-year period and a decision on an extension taken by the supervisory board about year before the contract's end.

Winterkorn has the support of Lower Saxony, the German state with a 20 percent stake in the carmaker and the power to veto major decisions.

 

BRIDGESTONE SUPER BOWL HALFTIME SHOW TO FEATURE THE BLACK EYED PEAS

The Black Eyed Peas, the musical phenomenon that energizes crowds around the world, will perform in the Bridgestone Super Bowl XLV Halftime Show on Fox at Cowboys Stadium in North Texas on Sunday, Feb. 6, the NFL has announced. The Bridgestone Super Bowl halftime show is the most-watched musical event of the year. More than 153 million viewers in the U.S. watched last year's show, featuring The Who. The Super Bowl and halftime show will be broadcast worldwide. Since forming in 1995, six-time Grammy award-winning, multi-platinum recording artists The Black Eyed Peas have sold more than 28 million albums worldwide and more than 30.8 million digital tracks. This year marks the fourth time the Bridgestone brand has sponsored the Super Bowl halftime show.

 (National Football League [www.nfl.com] - New York, N.Y. - Nov. 25)

 

HYUNDAI BREAKS GROUND FOR THIRD PLANT IN CHINA

Hyundai Motor Co., South Korea's largest automaker, began construction of a third plant in China in response to growing demand in the world's largest automobile market. Beijing Hyundai Motor Co. (BHMC), a 50-50 joint venture between Hyundai Motor and Beijing Automotive Industry Holding Co., held a groundbreaking ceremony on Sunday (Nov. 28) in Shunyi District, Beijing, for the 400,000-unit/year plant. The new plant is scheduled to be completed by July 2012, and, combined with its two existing plants which roll out up to 300,000 units each, Hyundai will be capable of producing up to 1 million units in China by 2012. BHMC expects this year's sales to exceed its target of 690,000, which is already beyond its annual capacity of 600,000, while cumulative sales may surpass 2.5 million units. The new plant is expected to produce small or mid-size models specifically designed for the Chinese market, starting from the second half of 2012, with plans to gradually expand its model lineup depending on demand.

 (Hyundai Motor Co. [www.hyundai.com] - Seoul, South Korea - Nov. 29)

 

SUMITOMO CHEMICAL TO BUILD NEW S-SBR PLANT IN SINGAPORE

Sumitomo Chemical has decided to construct a new plant in Singapore for the manufacture of its solution styrene-butadiene rubber (S-SBR). The new plant will have a production capacity of 40,000 tons per year, and will start commercial operation in the fourth quarter of 2013. Sumitomo Chemical decided to construct the new plant in Singapore because of its geographic advantage in supplying the growing Asian markets and a secured stable supply of the raw material butadiene, which is likely in tight supply, as well as easy access to existing businesses of the Sumitomo Chemical Group in Singapore that can be leveraged effectively, the company said. Sumitomo Chemical's S-SBR is manufactured using the company's proprietary manufacturing process technology, and it develops high-performance grades with its polymer modification technology - key to high performance. S-SBR is seeing rapid growth as a raw material for high-performance, fuel-efficient tires amid increasingly strict worldwide regulations on automobile fuel consumption.

 (Sumitomo Chemical - Singapore - Nov. 29)

 

Rolls-Royce sales boom in China

November 30, 2010 09:02 CET

SHANGHAI (Bloomberg) -- China will become Rolls-Royce's biggest market, surpassing the U.S., as early as next year. The company sold about a third of its cars in the U.S. in 2009. Rolls-Royce Motor Cars Ltd., BMW AG's luxury nameplate, plans to sell 800 cars in China in 2011 as it aims to raise sales eightfold in two years in the world's largest auto market. The automaker delivered almost 500 cars in China in the first 10 months of 2010, compared with about 100 for the whole of last year, Paul Harris, the company's Asia Pacific regional director, said in an interview. Rolls-Royce includes Hong Kong in its China sales.

The exclusive marque, which competes with Volkswagen AG's Bentley and Daimler AG's Maybach, is selling more of its Phantom and Ghost sedans in China as rising incomes in the world's fastest growing major economy boost sales of luxury cars. China has 875,000 millionaires, 6.1 percent more than last year, according to a report in April by the Shanghai-based Hurun Research Institute.

“The Chinese market in general is showing only one direction,” Harris said. “That's exceptional growth, and it's going to be ongoing for quite a while.”

A Rolls-Royce Phantom starts at 6.6 million yuan ($990,000) and buyers pay 4.1 million yuan for a Ghost in China where consumers pay higher taxes on imported luxury models. In the U.S., the Phantom starts at $380,000.

Ghost demand

Munich-based BMW bought the rights to Rolls-Royce cars for 45 million pounds ($70 million) in 1998, and began building them at a new factory in 2003. Rolls-Royce may add as many as four more dealers in China by the middle of next year, in second-tier cities such as Tianjin and Wuhan, Harris said. The Goodwood, England-based carmaker, headed by Chief Executive Officer Torsten Mueller-Oetvoes, currently has eight dealerships in the nation. The latest Ghost model, introduced in December, has boosted growth for the exclusive marque after the financial crisis depressed sales 17 percent in 2009. Rolls-Royce delivered 2,007 cars through October worldwide, already surpassing the record since BMW took over of 1,212 in 2008, and 1,002 deliveries last year.

Import duties

The Phantom comes with a 6.75 liter engine and soft leather upholstery as standard. An extended wheelbase version of the Phantom costs 8.2 million yuan, the company said. Imported luxury cars cost more in China than in countries such as the U.S. as the vehicles are subject to high import duties and consumption taxes. An imported car with an engine bigger than 4.0 liters will face an import duty of 25 percent, value-added taxes of 17 percent, and a consumption tax of 40 percent, according to researcher J.D. Power & Associates. Chinese customers ordering a Phantom now will have to wait until late May next year to receive their cars, Harris said.

“It's a story of success for Chinese entrepreneurial businesses, the Chinese entrepreneur works hard and wants to reward himself for a job well done,” he added.

 

Bauma China 2010 exceeded all expectations

  • bauma China 2010 - another record-breaker
  • More than 150,000 visitors: + 33 per cent
  • Increase in exhibitor numbers and exhibition space

bauma China 2010, the 5th International Trade Fair for Construction Machinery, Building Material Machines, Construction Vehicles and Equipment, has again broken all records with regard to exhibition space, exhibitor numbers and visitor numbers. Once more, bauma China has further consolidated its position as the leading trade show for the Chinese and Asian construction industry.
 
More than 150,000 visitors from 165 countries attended this year’s bauma China (2008: 112,674 visitors from 124 countries). This represents an increase of 33 per cent compared to the last edition. After China, the top ten countries and regions of origin among the visitors were Korea, India, Japan, Russia, Malaysia, Brazil, Singapore, Thailand, Indonesia and Australia – in that order.
 
“The enormous growth in visitor numbers as well as the outstanding positive feedback from our exhibitors is impressive evidence that bauma China is the leading business platform for the construction industry in China and Asia,” explained Eugen Egetenmeir, Managing Director of Messe München. And Zhou Weidong, Vice Chairman of the China Council for the Promotion of International Trade - Machinery Sub-Council (CCPIT-MSC) summed up: “With the rapid development of China’s construction machinery market, bauma China breaks all records again. Due to the incredibly huge visitor flow, we are sure that both exhibitors and visitors have achieved their expected goal. bauma China was a complete success.”
 
Covering 230,000 square meters of exhibition space, bauma China 2010 was ten per cent bigger in area than in 2008, when the show took up 210,000 square meters. All in all, 1,858 exhibitors from 37 countries (2008: 1,608 exhibitors from 30 countries) took part in bauma China 2010. This means not only an increase of 15 per cent in exhibitor numbers but also a broader international spread. “bauma China is not only the most important platform for our globalization drive, it is also the most efficient access to the latest industrial information. We do not see bauma China only as a marketplace, but also as a channel for meeting existing customers and new contacts from India, South Asia, South America and Africa,” said Kenny He, Vice President of Zoomlion.
 
Of the total of 1,858 exhibitors, China accounted for the highest proportion with 1,124 exhibitors. 734 exhibitors came from outside China to present their latest products and innovations at bauma China. The strongest contingents of overseas exhibitors were from Germany (154), Italy (107) and the US (92). “This year's bauma China show has exceeded all expectations. Attendance at the show, an important exhibition in the international calendar, is a must for all engine manufacturers and OEMs who are committed to being successful in the Chinese construction industry,” said Gwenne Henricks, President at Perkins Engines Company Ltd.
 
A further highlight at bauma China were the national pavilions from Austria, Finland, Germany, Great Britain, Italy, Korea, Spain and the US, all showcasing state-of-the-art technology produced in these countries and informing on research and development trends.
 
The next bauma China takes place from 27 to 30 November 2012.
 
Further information on bauma China 2010 can be found at www.bauma-china.com

 

Mercedes loses ground to BMW, Audi in European luxury-car sales

November 17, 2010 11:58 CET

BERLIN (Bloomberg) – Mercedes-Benz failed to keep pace with BMW and Audi as the automaker dropped to third in European luxury-car deliveries last month.

Mercedes-Benz's sales in Europe fell 2.5 percent to 50,855 cars and sport-utility vehicles in October, while Audi's gained 2.2 percent to 52,181 and BMW's rose 6.2 percent to 51,863, according to ACEA, the European automakers association.

Mercedes-Benz sold 489,718 vehicles in the 10 months through October, fewer than the 503,771 sold by BMW. Audi was the region's largest high-end carmaker with 524,549 deliveries.

BMW, the biggest manufacturer of luxury vehicles worldwide, is profiting from a revamped 5-series sedan and a new compact SUV, the X1. Audi is attracting buyers with the new A1 subcompact. Mercedes-Benz's volumes have slipped as its A- and B- class compacts near the end of their life cycles.

All three companies gained market share in Europe, where demand is waning as governments end or reduce subsidies aimed at encouraging trade-ins of old vehicles for scrapping.

“Mercedes may be taking a double hit because the A- and B- class were helped last year by scrapping incentives and a model changeover is set for late next year,” said Marc-Rene Tonn, an analyst with M.M. Warburg in Hamburg. Still, “there's no reason to be concerned about Mercedes's European business.”

European registrations decline
European auto registrations fell 16 percent to 1.06 million vehicles in October, the seventh consecutive monthly drop, with 10-month sales declining 5 percent, according to the association's figures.

The region's five biggest car markets of Germany, Italy, France, Spain and the U.K. all contracted by more than 18 percent in October, with sales in Spain slumping 38 percent, the steepest drop. Fiat, Ford and Toyota posted the sharpest declines among manufacturers.

The drop “continues to show the difficulties faced by the car industry in the region,” after so-called scrappage programs “heavily boosted” sales a year ago, Jonathon Poskitt, an Oxford, England-based analyst with J.D. Power & Associates, said before the release. “The underlying weakness of the market is being revealed” as the subsidies end.

Sales by Fiat tumbled 33 percent to 73,774 vehicles. Ford's European registrations dropped 29 percent to 77,093, while Toyota's fell 28 percent to 46,500 autos. Volkswagen recorded a drop of 11 percent to 239,526 cars and SUVs, with the decline held back by Audi's growth.

 

INDIA TYRE PRODUCTION UP 28% IN FIRST HALF

Tyre production in India in the first half of this financial year (April-September) increased 28 percent, while exports registered an increase of 18 percent, Business-Standard.com reported. The production increased in all tyre segments, while growth was negative in exports of truck/bus tyres, light commercial vehicle (LCV) and tractor tyres, according to the latest data by the Automotive Tyre Manufacturers Association (ATMA). Total production of tyres increased to 9.53 million from 7.44 million in H1 of 2009-10. A total of 486,608 tyres were shipped in the first half of the current financial year, as against 413,587 in the same period last year.

Production in the scooter and motorcycle segment surged, with scooter tyres registering a 67-percent growth, and three-wheeler segment registering a 46-percent increase. A 28-percent rise was recorded in the motorcycle tyre segment. Single-digit growth was recorded in truck/bus, LCV and tractor tyres. Production of passenger-car tyres increased 41 percent to 2.09 million. A total of 1.27 million truck/bus tyres were produced, compared to 1.21 million in H1 last year.

 (Business-Standard.com - Kochi, India - Nov. 17)

 

Fiat to boost output 43% to defend declining Brazil market share

November 17, 2010 13:33 CET

BUENOS AIRES (Bloomberg) -- Fiat's Argentine unit will counter its declining market share in Brazil, its biggest market, by ramping up production as much as 43 percent next year, President Cristiano Rattazzi said.

“We need a lot more cars, we are losing market share in Brazil for a lack of cars,” Rattazzi, said in an interview in Buenos Aires. “Brazil is the big market.”

Fiat Argentina is investing 813 million pesos ($205 million) to build a new model it will sell in both Argentina and Brazil beginning as early as March. Overall production at Fiat's plant in the province of Cordoba may reach 100,000 units in 2011, up from about 70,000 this year, Rattazzi said. About 85 percent of that output is for export to neighboring Brazil, where the company was the second biggest seller, after Volkswagen´s local unit, in October.

Brazil accounted for 17.6 percent of Fiat's 50 billion euros ($67.5 billion) in revenue in 2009, more than any country in Europe except Italy, according to the company's financial results. Fiat owns 20 percent of Chrysler Group LLC.

The auto industry has been the “engine” of Argentina's economic growth since 2004, said Maximiliano Scarlan, an economist at Abeceb.com. The country's economy may expand 9 percent this year, led by vehicle production according to the central bank. The economy grew 0.9 percent last year.

Market share
Following a slowdown in 2009, Argentine automakers have increased output by 44 percent so far this year to 580,000 units. They also boosted exports, mostly to Brazil, by 44 percent in the same period.

Brazil's economy, the biggest in Latin America, will expand 7.6 percent this year and 4.5 percent in 2011, according to the median forecast in a central bank survey of about 100 economists published today. Fiat accounted for 22 percent of the 228,175 vehicles sold in Brazil last month, down from 25 percent a year earlier, according to the National Vehicle Manufacturer's Association in Sao Paulo.

Automakers represented about 57 percent of the growth of Argentina's industrial output this year, compared with 35 percent in 2006, Scarlan said. The country will likely produce about 710,000 units this year, surpassing a record 590,000 in 2008, he said.

“There are expectations of reaching 800,000 units because Brazil has a strong outlook of growth in the coming years, has a domestic market with a new group of consumers and good financing,” Scarlan said.

Inflation ‘problem'
Rattazzi said Argentina's government will need to take measures to slow annual inflation he estimated at 25 percent to 30 percent, the fastest in the region after Venezuela.

The national statistics institute reported on Nov. 12 that consumer prices rose 11.1 percent in October from a year earlier, less than half the estimates by Rattazzi and other private economists, including former central bank President and current opposition lawmaker Alfonso Prat-Gay.

“When you have 30 percent inflation, you have a problem,” Rattazzi said. “Coming out of inflation has never been easy but it has to be done.”

 

Ceat Launches Website to ‘Idiot-Proof’ Motorcyclists

Created: November 17, 2010 09:08:00 AM

Motorcycle and moped riders in India are receiving a reminder that “roads are filled with idiots” courtesy of a new safety-themed website launched by Ceat Ltd. The manufacturer has launched the memorably named www.beidiotsafe.com website to promote the grip benefits its range of two-wheel tyres can offer, yet the site’s refreshing directness means its appeal goes way beyond that of its intended audience. Visitors to the site are met by a 360-degree rotatable idiot diorama; after playing with this feature, sub-sections such as an idiot’s gallery, a ‘spot the idiot’ game and a link to where road users can share their tales of idiocy are just a click away.

“We want to increase our market share in the two-wheeler category, and this campaign aims to address that,” shared Ceat’s executive director of Operations, Arnab Banerjee. “The campaign is mainly launched to promote the USP (unique selling point) of our product and address the target segment that we have identified. The cornerstone of the proposition is that Ceat Bike Tyres are the best tyres to navigate the chaos on the Indian roads because of the superior grip it offers.”

In addition to being an opportunity to showcase the company’s two-wheeler tyre portfolio, Ceat sees the website as a social initiative. Its objective is to acquaint visitors with different types of people or “idiots” who disrespect and flout road etiquette and traffic regulations.  “Companies are increasingly adopting a cause based marketing approach as it helps the brand as well as society at large. We felt that there is a need to address the road discipline issue as India scores the highest globally when it comes to road accident deaths,” Banerjee added.

 

Lamborghini's Murcielago replacement will slash CO2 emissions

Luca Ciferri  - Automotive News Europe -- November 15, 2010 12:00 CET

SANT'AGATA BOLOGNESE, Italy – Lamborghini S.p.A. says its Murcielago supercar replacement will reduce carbon dioxide emissions 20 percent without sacrificing performance.

Next March, the Italian automaker will unveil the still-unnamed model at the Geneva auto show.

“The new model is part of Lamborghini's commitment to slash carbon dioxide emissions by 35 percent by 2015,” Lamborghini CEO Stephan Winkelmann said during a preview here on November 5. His comments and details of the event were embargoed until today.

As a small automaker that sells fewer than 10,000 supercars a year, Lamborghini was exempted from the European Union's requirement to slash carbon dioxide emissions to meet the EU's target to reduce average fleet emissions from Europe's new car fleet to 130 grams per kilometer by 2015.

But Winkelmann says Lamborghini, which is a unit of Volkswagen AG's Audi AG, can win over consumers by setting tough internal emission targets without sacrificing performance.

The new vehicle's 6.5-liter, 700-hp engine is more powerful than the current Murcielago's 640-hp powerplant. The new model emits only 398g/km of carbon dioxide, equivalent to about 17.2 liters of fuel per 100km or 15.6 U.S. mpg, down from the old version's 495g/km, equivalent to 22l/100km or 12.5 mpg.

The more efficient powertrain is mostly responsible for lower emissions, says Lamborghini Technical Director Giancarlo Reggiani.

He said the new powertrain accounts for 61g/km of the total 97g/km CO2 reduction in the new car.

Carbon fiber parts

To reduce emissions another 28g/km, Lamborghini used tires with lower rolling resistance and designed a more aerodynamic exterior. The final 8g/km CO2 reduction comes from using carbon fiber components to cut the vehicle's weight by 100kg (about 220 pounds) from the 1,750kg curb weight of the Murcielago, which has a steel spaceframe coupled with aluminum body panels.

The new engine alone is 18kgs lighter at 235kg, compared with the 253kg Murcielago engine.

Lamborghini executives note that the 700-hp Murcielago replacement will be more fuel-efficient than the 620-hp Ferrari 599 GTB Fiorano, which emits 420g/km of CO2.

Lamborghini managed this even though its all-wheel-drive configuration is inherently heavier than the Ferrari's rear-wheel-drive setup.

Sales slowdown

Lamborghini ceased production of the Murcielago in May, and sales will not recover until the Murcielago replacement goes on sale in the second half of 2011.

Priced at 300,000 euros (about $410,650), the Murcielago costs nearly twice as much as the V10 Gallardo, now the company's only available model.

“This will surely have an impact on our sales performance,” Winkelmann said. “Compared with 2009, we will pay for the absence of the Murcielago this year.”

In the first six months of 2010, Lamborghini's revenues fell 2.6 percent from a weak year-ago period to 152.9 million euros.

By contrast, rival Ferrari expects near-record profits in 2010. In the third quarter, Ferrari revenues rose 12.6 percent year-on-year to 446 million euros.

 

BRIDGESTONE BANDAG RELOCATING HEADQUARTERS TO NASHVILLE AREA

Bridgestone Americas (BSAM) announced today (Nov. 15) plans to begin the process of relocating members of its senior management team and other specific functions of its Muscatine, Iowa-based Bridgestone Bandag Tire Solutions (BBTS) operations to locations in the Nashville, Tenn., area, including BSAM's headquarters facility in Nashville. This move is part of an overall effort to restructure the way BSAM does business across its North American operations. The company is installing new management operating systems to improve efficiencies and business processes, and enhancing the ability to measure business and individual performance. About 220 BBTS employees will remain in Muscatine, while 32 will be relocating to Nashville. Further, 55 BBTS employees, who will not be relocating to Nashville, have been asked to assist with the transition, which is expected to conclude no later than June 30, 2011. Eighteen positions within BBTS were eliminated, effective today.

 (Bridgestone Americas Inc. - Nashville, Tenn. - Nov. 15)

 

Ag tiremakers, dealers struggle with pricing

November 15, 2010

Pricing is one of the many challenges facing farm tire manufacturers and dealers as 2010 winds down.

"The industry looks like it will again be impacted by volatile raw material costs similar to 2008," says Tom Rodgers, director of marketing, Agrucltural Tire, U.S. & Canada Commercial Tire Sales Division, Bridgestone Americas Tire Operations LLC.

Neil Rayson, president of CGS Tires U.S. Inc., also cites raw material costs as a pressing concern for tire manufacturers. Inventory is another issue -- and not just for suppliers.

"For the dealer, if the short term trend continues, his dilemma will be how much inventory to commit to -- and when -- to try to secure sufficient spring supply and mitigate the impending price increases."

Moving forward, farm tire manufacturers will have to balance the need for plant investment against escalating raw material costs, says Bill Haney, sales director for Balkrishna Industries.

"Much of the manufacturing infrastructure needs replaced or updated at a time when high raw material costs are competing for available capital. Dealers face a similar challenge in stocking tires now vs. higher prices later."

 

Bridgestone OE Fitment on New Triumph

Created: November 10, 2010 04:02:00 PM

Bridgestone’s Battlewing Adventure Sports tyre will be original equipment on Triumph’s latest model, the eagerly anticipated Tiger 800 XC. The tyre was chosen after rigorous testing for compatibility. The bike was unveiled in Milan earlier this month and is aimed at the adventure touring bike market. The fitment will help maximise the motorcycle’s on and off road capabilities, says Bridgestone.

Gary Hartshorne, motorcycle technical manager at Bridgestone UK, comments: “The pairing of the Tiger 800 XC and the Battlewing is very exciting and will offer customers the ultimate in high performance. Bridgestone has a longstanding relationship with Triumph and is delighted to have been chosen as original equipment on the latest launch.”

The fitment of Battlewing tyres on the Triumph Tiger 800 XC is the latest in a series of OE fitments for Bridgestone. Other high profile pairings include the Triumph Street Triple and the 2011 Suzuki GSXR 600 and 750 – all of which have Bridgestone’s critically acclaimed Battlax BT-016 Hyper Sport as OE fitments.

 

Native Plants Helping the Environment & Bottom Line at BBTS

Created: November 12, 2010 08:17:00 AM

Last summer Bridgestone Bandag Tire Solutions ‘went native’, ripping out 15 acres of lawn at the company’s facility in Muscatine, Iowa and replacing it with native landscapes. The company’s actions caught the attention of the Wildlife Habitat Council, who has recognised the work undertaken with its “Wildlife at Work” certification. Bridgestone Bandag’s Muscatine facilities now have a total of 25 acres of native landscapes.

“The Wildlife at Work certification is truly an honour,” said Dennis Fox, vice president of Manufacturing Design for Bridgestone Bandag Tire Solutions, who served as the project team’s sponsor. “This project is really a win-win as it’s great for the environment and saves the company money. With the native landscapes, we also don’t have large amounts of potentially harmful chemicals flowing into our ponds and streams, as the native plants don’t need pesticides or fertilisers.”

“The Wildlife Habitat Council believes that collaboration among all stakeholder groups is critical to addressing the complex issues facing the sustainability of the planet,” said Wildlife Habitat Council president Robert Johnson. “WHC members take a leading role in connecting community stakeholders through wildlife habitat enhancement, community outreach and conservation education. Congratulations to Bridgestone Americas for its commitment to a healthy natural world and connected communities.”

Bridgestone Bandag replaced turf grass with native plants that do not depend on water, fertilisation or mowing in May 2009. By eliminating the constant maintenance needs of turf grass, the new native landscapes will save the company more than $100,000 annually while creating a habitat for native plant and animal wildlife species. “We’re very proud to have earned this Wildlife at Work certification from such a well respected environmental group like the WHC,” said Paul E. Crosser, environmental services manager, Bridgestone Bandag Tire Solutions. “However, certification isn’t the end of the road. It now means we must pay continuous attention to improving the habitat and educating the community. We aim to conduct wildlife inventories, remove invasive plant species, perform bluebird house monitoring and collaborate with local schools on environmental education programming.”

The BBTS Muscatine Native Landscapes Project is the 10th Bridgestone Americas habitat initiative to receive certification from the Wildlife Habitat Council.

 

Tyre industry is in turbulent times

15 Nov, 2010, 05.08AM IST, Chanchal Pal Chauhan,ET Bureau

The country’s tyre industry is passing through one of the most challenging phases this decade. For one, prices of natural rubber, a key input for making tyres, have peaked. The domestic industry is also losing its marketshare with a surge in tyre imports from China. Neeraj Kanwar, managing director of Apollo Tyres, who also steers the Automotive Tyre Manufacturers’ Association (Atma), the apex body of tyremakers, says he expects operating margins to be down further in the second quarter.

However, he hopes to take some radical steps to tide over supply shortfall in natural that will help companies improve their profitability.

The domestic industry is dominated by over half-a-dozen companies, namely Apollo, MRF , JK Tyres, Ceat , Birla and Dunlop. Others include global players such as Bridgestone, Continental and Yokohama. The demand for tyres from the auto industry is on the rise, with the economy showing distinct signs of recovery.

“There has been no respite in input prices. The industry is facing turbulent times despite a pick-up in demand. Margins have shrunk and are at the lowest levels, largely due to the surge in raw material prices. The replacement market is also down due to the monsoons. We are working out strategies to tide over the crisis, but there is no magic solution,” says Kanwar, who started his career as an investment banker before his two-decade stint in the tyre industry.

Last year, the domestic tyre industry faced shortage of 1 lakh tonnes of natural rubber and the anticipated shortfall is over 2 lakh tonnes this year. Rubber prices, too, have doubled over the past one year to reach. 190/kg in November this year. Tyremakers say their operating margins shrunk to an average of 5-8% in the first half of this fiscal. They claim that automakers have fared much better, with margins of 12-15 % during the first quarter of the current fiscal.

“We have not been able to pass on all the input costs to consumers. Besides, there are anomalies in the duty structure, with natural rubber attracting a 20% duty, while finished goods such as tyres can be imported at 8%. This has opened the window for tyre imports at cheaper prices and prevented Indian tyre companies to source raw materials at affordable prices,” he says.

Kanwar argues that tyre imports are on the rise despite anti-dumping duty. China has an import duty as high as 40% on finished goods. The Chinese government has also gone all-out to support domestic industry by buying rubber plantations in Africa, Thailand, Vietnam and Indonesia to increase natural rubber supplies.

Are Indian tyremakers keen on replicating such a model to tide over the supply shortage in tyres? “Automotive Tyre Manufacturers’ Association is also exploring ways to resolve the crisis. One of the options being explored is a public-private partnership model to acquire rubber plantations overseas. We are working on the feasibility of such a model and will flag it with the Planning Commission,” he says.

 

INDIAN TYRE INDUSTRY PLANS PRICE HIKE NEXT MONTH

The Indian tyre industry is planning a price hike by 4 to 5 percent next month to counter higher natural rubber prices, CommodityOnline.com reported. Natural rubber prices soared in recent weeks to Rs 203 a kg. A tyre industry official said that the industry could not afford the natural rubber prices, therefore the industry decided to go with price raises. The official, who declined to be named, said that the prices of truck and bus tyres will be raised next month. This will be the fourth hike in this kind since January. Tyre prices have risen 15 to 20 percent in the last 10 months. The price of benchmark NR grade RSS-4 was Rs 203 a kg on Tuesday (Nov. 9) in the local markets. The demand was normally good, but the sector needs an increase to the tune of 14 to 15 percent to nullify the impact of the huge increase in rubber prices, the official added. So, the price increase is inevitable, and only the quantum of increase in various categories is to be decided, he said.

 (CommodityOnline.com - Mumbai, India - Nov. 10)

 

INDIAN TYRE MAKERS SHARES UP ON PRICE HIKE REPORTS

Shares of Indian tyre manufacturers were trading higher, following a newspaper report that companies may raise tyre prices to counter rising natural rubber prices, dealers said, The Economic Times reported, citing Reuters. According to the Business Standard Report, tyre companies have raised prices four times since January. Indian rubber futures hit record high on global cues last week. At 2:47 p.m., shares of MRF, JK Tyre & Industries, Ceat and Apollo Tyres were up 1.49-3.76 percent.

 (The Economic Times [www.economictimes.indiatimes.com][Retuers] - India - Nov. 10)

 

COMMERCIAL PASSENGER CARRIERS TO DRIVE INDIAN TYRE INDUSTRY, SAYS REPORT

According to a new research report published by RNCOS, which specializes in industry intelligence, the performance of commercial vehicle tyres is directly linked to India's economic development. The report is titled, "Indian Tyre Industry Analysis." RNCOS says, "Fast-growing economy, dynamic developments in manufacturing sector, along with rural developments, will infuse production of commercial vehicles in the coming years. This will eventually uplift commercial carrier tyre demand in the country. It is anticipated that the commercial vehicle tyre market will climb to Rs 22.8 billion by FY 2014." The publishers went on to say, "Demand for tyres in India is expected to retain its upward trend in coming years … The commercial vehicle segment will continue to propel tyre demand. Due to several reasons identified and discussed in our report, radial tyres are fast gaining acceptance in the Indian tyre industry. We have also discussed new emerging trends of the Indian tyre industry. For a free sample of this report, visit: www.rncos.com/Report/IM267.htm.

 (RNCOS [www.rncos.com] - Noida, Uttar Pradesh, India - Nov. 10)

 

ADITYA BIRLA NUVO MAY BID FOR EVONIK CARBON BLACK UNIT

India's Aditya Birla Nuvo may bid for the carbon black division of Germany's Evonik Industries, Sify.com reported, citing the Business-Standard. The division, with annual sales of $1.3 billion and 1,700 employees across 12 countries, is the second-largest in the world. Cost of acquiring the Evonik carbon black division is seen at $1.25 billion. According to two independent investment banking sources, AB Nuvo officials have been approached by bankers to buy out the carbon black division. In September, Evonik had identified the division as non-core and finalized plans to divest it. Aditya Birla Group, on the other hand, is the fourth-largest producer of carbon black at 900,000 tons per annum, with facilities in India, Egypt, Thailand and China. "Yes, we are aware of the divestment process of Evonik's carbon black operations," said Santrupt Mishra, CEO of the carbon black business of the Aditya Birla Group, noting that the group has not put in any bid for the asset.

 (Sify.com [Business-Standard] - Tamil Nadu, India - Nov. 10)

 

WINTER TIRES TO BECOME COMPULSORY IN ROMANIA

The Romanian Ministry of Transport has created a new law that makes the use of winter tires compulsory, AutoEvolution.com reported. The new project states that all cars and trailers must use special cold season tires between Nov. 1 and March 31. The project is currently in the development phase, pending official approval. However, winter tires are not only designed for snow and ice. These type of tires also uses different composition that allows them to perform better in low temperatures. This means that even though the exterior temperature has not reached 0 degrees Celsius and the road ahead is as dry as it can be, motorists should also use winter tires.

 (AutoEvolution.com - Bucharest, Romania - Nov. 5)

  

WEAK OCTOBER CONTINUES DECLINING NEW CAR MARKET IN U.K.

New car registrations in the U.K. fell by 22.2 percent in October to 131,495 units, according to the Society of Motor Manufacturers and Traders (SMMT). That is the steepest decline since May 2009. The market remains 4.8 percent up over the first 10 months of the year, at 1,767,154 units. Further declines are likely in the remainder of the year, but the 2010 market is expected to be up 1.5 percent over 2009. The market was on par with last October's volume, withy scrappage volumes excluded. "There was a significant fall in October's new car registrations, reflecting the impact of the Scrappage Incentive Scheme (SIS) at this time last year and some deterioration in consumer confidence," said Paul Everitt, SMMT chief executive. "Total new car registrations in 2010 are forecast to be 2.026 million units, 1.5 percent up on 2009."

 (Society of Motor Manufacturers and Traders [www.smmt.co.uk] - United Kingdom - Nov. 5)

 

Point S UK Growth Ahead of Schedule

Created: November 05, 2010 01:56:00 PM

The plans of international tyre buying and marketing cooperative Point S to fill in the gaps in its European market map with a UK operation are reported to be “ahead of schedule.” In less than a year since membership talks began and just four months after the news of Point S (UK) Ltd formation was announced, the company’s plans for the establishment of one of the largest retail networks in Britain are said to be running so well that they could meet next year’s target before the end of 2010.

Point S currently operates in 20 European countries and has more than 1,900 independently-owned tyre retail outlets in membership and sales of over 11 million tyres per year. Following the news that Point S was coming to Britain, UK Tyres (the predominantly south England based buying group which negotiated the adoption of the Point S moniker in the UK) began an expansion programme designed to grow its existing membership of 13 member and a combined total of 56 retail outlets into a 100 depot network by 2011.

Speaking to Tyres & Accessories during the recent Brityrex exhibition, Point S UK director Charles Sunderland explained that the organisation had already received serious enquiries from 20 companies prior to Brityrex. However by the end of the show around 20 further companies are reported to have expressed an interest. The fact that supply appears to have exceeded demand at this stage consequently leaves Point S UK’s management in the enviable position of being able to require tight quality standards from its prospective members, which inevitably works to the advantage of everyone in the group.

“The Point S offer is highly attractive to independent tyre retailers as it gives them the benefits of enormous buying power and national marketing strength without having to compromise the independence which is their greatest strength,” said Charles Sunderland said immediately before the show. But it is not just the dealer-specific benefits that have caught the attention of prospective members.

T&A understands that certain premium tyre manufacturers immediately took note when the news of Point S UK broke and that a number of tyre suppliers have been in contact with regard to negotiating supply terms. Meanwhile the idea of another large retail business competing with the domination of Kwik-Fit, National Tyres & Autocare, ATS Euromaster and HiQ has been received as “a breath of fresh air” by some of the smaller players who could potentially gain direct access to manufacturers through the scheme in a way that was not available.

A breath of fresh air
This “fresh air” response is particularly related to the news that Point S is planning to offer members access to the UK fleet market – a potentially lucrative arena that is currently dominated by Kwik-Fit, which services around three quarters of this market,

Prior to the show Charles Sunderland commented: “Brityrex is the perfect opportunity to take the Point S message into the marketplace and speak to dealers,” If the response to the new network, which could achieve its 2011 membership targets as early as January 2010 as a conservative estimate, are anything to go by it seems it was.

 

BMW to begin selling first hybrid supercar in 2013

November 5, 2010 13:59 CET

LEIPZIG, Germany (Bloomberg) -- BMW AG will build its first hybrid supercar as part of a broader effort to create more fuel-efficient vehicles.

The Vision Efficient Dynamics model, which accelerates to 100 kilometers per hour (62 miles) in 4.8 seconds while emitting 99 grams of carbon dioxide per kilometer, will go on sale in 2013, the carmaker said at an event in Leipzig, Germany. The car will be priced below the company's Rolls-Royce models, development chief Klaus Draeger said.

CEO Norbert Reithofer is developing the hybrid supercar and an electric-powered Megacity auto to help meet tighter environmental regulations and to boost sales to 2 million vehicles by 2020 from 1.4 million this year. The new sports car, which has doors that open upwards, is powered by a three-cylinder diesel engine and two electric motors.

“It's important for BMW to communicate even small progress to cement its perceived role as a leader in hybrid and environmental technology,” said Juergen Pieper, an analyst at Bankhaus Metzler in Frankfurt who recommends buying the shares. “It would help if they're the first to sell such cars. But it's going to take a while to make them count in terms of earnings.”

Speedy acceleration
BMW's hybrid sports car will have a similar acceleration rate to BMW's M6 supercar, while emitting just 30 percent of the M6 coupe's CO2 per kilometer, according to BMW's Web site. The M6's starting price in the U.S. is $102,350.

The carmaker targets “significant” sales volumes for the Vision Efficient Dynamics and will make it available on all major markets as BMW aims to steal customers from competitors' models, Draeger said.
“I expect a very considerable share of conquests,” he said. “We want to achieve a certain market presence with the car and so can't limit production to one car a day.”

Porsche SE, which is combining with Volkswagen AG, plans to produce a 918 Spyder hybrid sports car, which features carbon fiber-reinforced plastics to reduce weight and emissions, spokesman Eckhard Eibel said. The carmaker hasn't decided when the car will go on sale or what the price will be, he added.

Mercedes SLS electric supercar
Daimler AG's Mercedes-Benz currently doesn't intend to make hybrid sports cars but will offer hybrid versions of its S-, E-, and C-Class models and its off-road vehicles. An electric version of its SLS gull-wing sports car with aluminum and plastic components will probably be built and a market introduction by 2013 is realistic, spokeswoman Eva Wiese said.

The Vision Efficient Dynamics will be made in Germany, Reithofer said. BMW may use a gasoline engine in markets like China and the U.S., where diesel engines aren't popular, Draeger said.

 

UK to lobby China leaders for speedy decision on Jaguar Land Rover plant

Staff Report - November 8, 2010 06:01 CET

U.K. Prime Minister David Cameron is expected to press Chinese political leaders to approve a new assembly plant for Jaguar Land Rover quickly when he visits the country on Tuesday, the Financial Times reported.

Jaguar Land Rover plans to build more than 50,000 cars a year in a new plant in China that will employ 5,000 people, the paper said, citing CEO Ralf Speth.

JLR wants an assembly plant in China to bypass high Chinese import duties that can double the price of a top-of-the-range Jaguar or Land Rover.

Luxury car sales are booming in China, which has passed the United States to become the world's largest auto market. “The winners and losers in the world automotive industry will be determined by what happens in China,” Speth told the paper.

JLR has already created a facility for packing sub-assemblies into crates for shipping abroad at its Halewood factory in northwest England and the project could begin “immediately” if the company reaches a joint-venture deal with a Chinese partner, Speth told the paper.

The automaker is negotiating with large state-controlled vehicle makers and with Chinese regions to find the best bridgehead into the market.

JLR wants to make Freelander and planned Evoque Land Rover SUVs in China, before introducing a Jaguar model.

The plant will cost more than 100 million pounds ($162 million) and may produce more than 150,000 cars in three years, the Financial Times said.
Ford Motor Co. sold JLR to India's Tata Motors for $2.3 billion in 2008.


 

BRIDGESTONE RETURNS TO PROFIT IN NINE MONTHS

Bridgestone Corp. reported today (Nov. 5) 66.8 billion yen ($826.7 million) in profit for the first nine months of this year, compared to a 27.5 billion yen ($340.3 million) loss during the same period last year. Sales for the current ninemonth period totaled 2.09 trillion yen ($25.9 billion), up 12 percent from last year. The company did not release quarterly results, but in August said it had posted a 44.5-billion yen ($550.7 million) profit for the first six months of the year. Bridgestone kept its full-year profit target at 91 billion yen ($1.1 billion). In the tire segment, Bridgestone reported 104 billion yen ($1.3 billion) in operating profits, while sales came in at 1,731 billion yen ($21.3 million). Bridgestone said it saw signs of moderate economic recovery in many regions around the world, but that high raw materials costs and the strong yen continued to weigh down profits. Bridgestone shares rose 1.6 percent to 1,507 yen ($18.53) in Thursday (Nov. 4) trading before its earnings were released.

The Smithers Report – Nov. 5

 

NATURAL RUBBER PRODUCTION PROJECTED TO DECREASE, SAYS ANRPC

Global rubber production this year is unlikely to increase more than 5.3 percent to 9.4 million tons, compared with a previous forecast for a 6.3-percent rise, according to the Association of Natural Rubber Producing Countries (ANRPC), BusinessWeek.com reported, citing Bloomberg. A further cut in the forecast is expected because of disruptions to tapping in Malaysia, Thailand and India, the group said. Meanwhile, rubber in Indonesia climbed to a record after heavy rains and floods in the country hurt supplies. The price rose to a record after heavy rains and floods hit Thailand, Malaysia and Sumatra.

 (BusinessWeek.com [Bloomberg] - Kuala Lumpur - Nov. 4)

 

VW seeks 10,000 electric-car sales in China from 2014
Automotive News Europe -- November 8, 2010 06:01 CET

HONG KONG (Bloomberg) -- Volkswagen AG plans to build and sell 10,000 electric cars in China from 2014 to 2018 as rivals add more fuel-efficient vehicles in the world's biggest automarket.

The carmaker will produce an electric model at local ventures with SAIC Motor Corp. and FAW Group Corp. as early as 2013 and add a battery-powered model specifically designed for China in 2018, said Karl-Thomas Neumann, Volkswagen Group China president, at a conference in Shenzhen, China on Saturday.

Volkswagen joins Nissan Motor Co., General Motors Co. and Daimler AG in planning electric vehicles in the country.

While local demand for electric cars and hybrids trails other markets, China is offering buyers of plug-in hybrids and pure electric cars subsidies of as much as 60,000 yuan ($9,000) to help cut pollution and reduce oil dependency.

“There is a very strong argument that electric cars are the right move for China, although there are still many challenges,” Neumann said. “China is making huge investments in renewable energy.”

The challenges include lessening the country's reliance on electricity produced by coal-fired power stations and high battery costs, which make production of electric cars in China not feasible at the moment, Neumann said.

Touareg hybrid
VW will introduce its Touareg hybrid sport-utility vehicle locally this year and begin field tests of electric vehicles in China this year.

Other car companies are planning to introduce new electric models in China before Volkswagen.

GM will add its Chevrolet Volt, which runs about 40 miles on batteries before using engine power, during the second half of 2011 and may introduce further models, the company said.

“We'll probably move to lead with lower cost cars, which are more designed around shorter trips and urban-use than some other parts in of the Western world,” Kevin Wale, president of GM's China business, said at the Shenzhen electric-car conference.

Other markets such as the U.S. will require no-compromise electric vehicles that meet all the standards of today's vehicles, he said.
Nissan, Daimler
Nissan, which plans to make as many as 500,000 electric vehicles a year globally by 2012, will begin tests of its Leaf electric car in Wuhan, China next year, Hideki Kimata, senior general manager of the Japanese automaker's Chinese joint venture with Dongfeng Motor Co. said in September.

Daimler and Shenzhen-based BYD Co. will be ready to introduce an electric car in the nation as early as 2012, Daimler CEO Dieter Zetsche said in October.

China will have as many as 20,000 plug-in hybrids and electric cars by 2013, Wan Gang, China's minister for Science and Technology said on Saturday.

Still, Chinese consumers may lag behind more developed automarkets in their acceptance of alternative-energy vehicles.

Researcher J.D. Power & Associates estimates China will account for less than 9 percent of the total plug-in hybrid and electric car demand by 2020, according to a study last month.

Chinese consumers
Chinese consumers may buy 432,000 plug-in or electric vehicles in 2020, out of a total of 5.2 million globally, J.D. Power said.

In Japan, hybrids already account for around 10 percent of car sales, according to the Japan Automobile Manufacturers Association.

Toyota Motor Corp. is testing feasibility of introducing plug-in hybrids and electric cars in China with its partners FAW Group Corp. and Guangzhou Automobile Co., Executive Vice President Takeshi Uchiyamada said yesterday.

Even so, electric cars may be of limited use to many drivers and mainly used by those traveling short distances in cities because of the limitations of battery technology, Uchiyamada said.

“We expect hybrids and plug-in hybrids to replace most of the gasoline-powered vehicles we have today,” he said. Fuel- cell vehicles may eventually become popular with drivers that want to drive longer distances, Uchiyamada said.

 

Chinese new-car prices likely to fall by 20%, VW exec says

Paul McVeigh - Automotive News Europe -- November 8, 2010 06:01 CET

BERLIN -- New car prices in China are likely to fall by 20 percent from today's levels by 2020, said Volkswagen AG's former China CEO Winfried Vahland.

Intense competition, low disposable income, and relatively low production costs are the most important factors causing a continuing price deterioration in the Chinese market, Vahland said.

Western automakers currently are justified in selling their cars for higher prices in China than Chinese competitors because their quality is higher, but Chinese brands are catching up, Vahland said.

"Unfortunately, they can be expected to continue to sell their cars at low prices. That means the price pressure won't lessen, " Vahland said at the Automobilwoche industry conference in Berlin on Nov. 2. Automobilwoche is a sister publication of Automotive News China.

Vahland said the cheapest cars in China cost about 3,000 euros, and the average price is nearly 10,000 euros, compared with an average price of 16,000 euros in Europe.

Vahland became CEO of Volkswagen's Skoda brand on Sept. 1 after five years as head of VW's China operations. Industry watchers say VW's board was pleased with Vahland's success in reversing VW's losses and slumping market share in China. The Skoda appointment means the 53-year-old German native is regarded internally as a potential successor to VW CEO Martin Winterkorn, insiders say.

Steps for China success
At the Automobilwoche conference, Vahland sketched out five crucial challenges and success factors for automaker executives working in China.

Besides offering market-specific products, companies need to establish and cultivate a strong brand, he said. Based on his experience, a dense dealer network is also indispensable.

Vahland aid also important were localization as well as cooperation on site with business partners, institutions and suppliers.

Despite the increasingly tough competitive environment, Vahland considers the VW brand and Skoda itself to be well positioned in China.

He said Skoda aims to have more than 600 dealers in China from 250 today.

Vahland said Skoda plans to double its new-car sales to "at least" 1.5 million in 2020, driven by growth in China, India and Russia.

As part of a 10-year international growth plan, Skoda sales outside Europe will increase to make up half of the brand's volume from 30 percent today, Vahland said.

Skoda's global sales rose 1.4 percent to 684,226 last year. This year's volume is expected to reach 750,000. In China alone, the brand's sales grew 60 percent to 140,402 in the first nine months, according to J.D Power and Associates.

Vahland said Skoda will strengthen its position as the entry-level brand for the VW group and its brand positioning will remain as a carmaker offering roomy, functional and practical vehicles offering value for money.

"The rapid success of Skoda in China in the past four years shows the brand's potential," he said.

 

BRIDGESTONE EUROPE TO RELEASE BATTLAX RACING R10 MOTORCYCLE TYRE IN 2011

Bridgestone Europe, the official tyre supplier to the FIM MotoGP World Championship, will release the new production motorcycle racing tyre -Battlax Racing R10 -in the spring of 2011. The new tyre is designed for production motorcycle racing worldwide. A new tread pattern and high-level tuning of the compound and structure have been adopted, providing improved warm-up capabilities and a high degree of freedom in cornering. Bridgestone's premium range of "Battlax" motorcycle tyres covers the full spectrum, from touring to racing, and from small to large-sized motorcycles. The Battlax Racing R10 will be available in the replacement market in one front-wheel size and two rear-wheel sizes next spring. One medium compound is available for the front tyre, with a choice of either hard or medium compound available for each rear size.

 

TOYOTA BEST PLACED TO ACHIEVE EUROPE'S CO2 REDUCTION GOAL

BRUSSELS (Bloomberg) -- Toyota Motor Corp. led carmakers in cutting carbon-dioxide discharges in Europe last year and is closest to achieving its target under European Union legislation, an environmental transport group said.

As part of efforts to fight climate change, the EU approved legislation in 2008 to cut car CO2 emissions by around a fifth to 130 grams a kilometer on average in 2015 through varying targets for individual manufacturers. The curbs, with the heaviest autos having to make the biggest reductions, will be phased in between 2012 and 2015.

Toyota cut CO2 discharges by 10 percent last year and is now “best placed” to comply with the 2015 target, according to the report published Thursday by Brussels-based Transport & Environment. This compares with a record 5.1 percent drop in the car industry's sales-weighted average emissions of CO2 per kilometer.

“Carmakers in Europe are heading for very significant overcompliance with the CO2 regulation and are hence likely to hit the target for 2015 years in advance,” Transport & Environment said. “The study's findings suggest that carmakers previously exaggerated the time needed to comply with car CO2 limits.”

Toyota, Suzuki Motor Corp., Daimler AG, Mazda Motor Corp. and Ford Motor Co. appear to have achieved the most progress in reducing emissions through better technologies rather than sales of small cars, the study said.

Toyota's average emissions dropped to 132 grams a kilometer last year from 147 grams in 2008. This is the second-lowest level after Fiat SpA, whose average CO2 discharges dropped 5.3 percent to 131 grams, the report said.

ACEA, the European automakers association, said average car emissions of CO2 are falling “rapidly” for several reasons, including the impact of the economic crisis and greater consumer demand for cleaner vehicles.

“Most importantly, we have seen a major shift in consumer awareness,” the Brussels-based association, whose members include Volkswagen AG, BMW AG, PSA/Peugeot-Citroen and Fiat, said. “Today, there is a market for fuel-efficient technologies that was almost absent until recently.”

An EU draft law from October last year would cut average CO2 from new vans by 14 percent to 175 grams a kilometer as of 2016 after a phase-in that begins two years earlier. Those targets should be tightened, according to the report.

Wider European curbs on the transport industry's greenhouse gases including CO2, the main such pollutant, would bolster an EU goal to cut such emissions by at least 20 percent in 2020 from 1990 levels. The EU is considering deepening that target to 30 percent should other countries follow suit.

  

VOLVO PLANS CHINA DESIGN TEAM TO GAIN GROUND ON AUDI, BMW

Volvo Car Corp., the automaker owned by Zhejiang Geely Holding Group Co., plans to hire a team of designers in China to cater to local tastes as the Swedish manufacturer prepares for its next model.

The designers would work at a research center being set up in Shanghai's Jiading district, design chief Peter Horbury said.

Volvo's next model, co-designed by Horbury and predecessor Stephen Mattin and planned for 2012, will be in the premium compact segment, said Per-Ake Froberg, a Volvo spokesman. Rival vehicles would include Audi's A3 and BMW's 1 series.

“If the Chinese or the Americans want more chrome on the grille, why would we say no to that just because we don't have that in Sweden?” Horbury said in an interview at Volvo's headquarters in Gothenburg. “In a global market there's still a cultural difference in tastes and requirements.”

China is key to CEO Stefan Jacoby's goal of doubling sales to 800,000 cars in a decade. Design that appeals more to buyers in China and the United States, the world's two biggest auto markets, would help Volvo reposition itself as an upscale brand to take on BMW AG and Volkswagen AG's Audi, the luxury-car leader in China.

“If they want to get deeper into that market it's critical they understand what's going on in China,” said Ashvin Chotai, managing director at Intelligence Automotive Asia Ltd. in London. “It's certainly natural that they study it very thoroughly.”

3 China plants

Volvo has no plan to release China-specific models and will focus on features for Chinese customers, Horbury said. While no final decision has been made on a design team, Volvo may hire the designers “not too far into next year.”

The Swedish automaker may build as many as three manufacturing plants in China, CEO Jacoby said in an interview last week in Stockholm. Jacoby led VW's North American operations, including Audi, before joining Volvo in August.

Audi was the first German luxury-car maker to build a model specifically for China. The VW unit introduced an A6 sedan in 2000 that is 13 centimeters (5.1 inches) longer to cater to customers who want to be chauffeured, spokesman Eric Felber said. Audi began selling an extended A4 sedan in China last year.

BMW and Daimler AG's Mercedes-Benz introduced their first cars designed for the Chinese market this year. The top two luxury-car makers each added 14 centimeters to the BMW 5-series and Mercedes E-class sedans. Mercedes is also considering an extended version of the C-class sedan, Daimler CEO Dieter Zetsche said in April.

Beijing design studio

Mercedes-Benz has “a small but growing studio in Beijing and will increase the number of designers there to about 30 over the course of a year or so,” spokesman Christoph Horn said by e-mail. “We started the studio in Beijing less than 2 years ago and already we get a lot of ideas and input from there.”

Rolls-Royce, BMW's ultraluxury unit, has outfitted vehicles with unique options such as gold-plated Spirit of Ecstasy hood ornaments and starlight roofliners that depict astrological signs, Marco Jahn, a Roll-Royce spokesman, said. Chinese beliefs also influence customers' choice of colors, with red linked to luck, and buyers are keen to get vehicle identification numbers that contain numbers associated with fortune, such as “8.”

“Chinese designers would be able to send us ideas for what they would see as potentially being successful in China, and then we would blend that into our Scandinavian-flavored design,” Horbury said.

Horbury returned to Volvo in May of last year from Ford Motor Co., where he most recently headed the North American design team. He had been Volvo's design chief between 1991 and 2002, during which time he gave a curved-shape to the previously boxy models. Ford completed a sale of Volvo to Geely in August for about $1.5 billion.

Audi quality benchmark

The next new Volvo with Horbury as sole design chief may come around 2013, as he said it typically takes four years from design start to production.

Volvo in recent months introduced the new S60 sedan and the V60 station wagon, cars that maintain Scandinavian clean lines while adding sportier features like the wagon's sloping rear window. Volvo aims to sell 380,000 cars this year. In China, it sold 24,489 cars through October, an increase of 45 percent from the same period a year earlier.

Volvo needs to pay more attention to details such as how it feels to turn the door handle or the smoothness of the air vents, Horbury said. Audi “has been doing that for years now. They've led the way in what I call perceived quality,” he said.

Volvo EV launched in Sweden

By late next year, Volvo plans to roll out test fleets of its electric vehicle in China, California and European markets including Belgium and the Netherlands, said Lennart Stegland, head of Volvo's special vehicles unit, in a separate interview. Volvo started taking orders for its electric car last month in Sweden, and will start deliveries in April, he said.

Volvo aims for its electric car and its plug-in hybrid, which will be released in 2012, to start making a profit in two to three years and together account for as much as much as 6 percent of deliveries by 2020, Stegland said.

  

GM STARTS EV OUTPUT IN CHINA; PROTOTYPE DUE BEFORE YEAR-END

General Motors Co. has started making an electric version of its popular Chevrolet New Sail in China and will roll out prototypes before the end of the year, making it the first foreign automaker to build electric cars in the world's biggest auto market.

GM, the top foreign automaker in China, is well-positioned to get a head-start over its rivals in the country's fledgling green vehicle business, which analysts say could be the next hotly contested sector. 

"Shanghai GM has started making the electric New Sail and a prototype will be available at the year-end," a source with knowledge of the matter told Reuters on Thursday.

It will initially roll out a small number of electric New Sail cars to test the market, said the source.

A GM China spokeswoman confirmed the plan, saying it's part of Shanghai GM's green vehicle campaign.

Shanghai GM is the Detroit automaker's car venture with top Chinese auto group SAIC Motor Corp., which makes Chevrolet, Buick and Cadillac models.

In June, Beijing unveiled a pilot scheme to hand out subsidies to buyers of fuel-efficient cars in five Chinese cities as it moves to cut emissions in the world's most populous country, which is also the world's largest producer of greenhouse gases.

But the handouts, which favor electric vehicles and plug-in hybrids, only cover locally made green models, reflecting Beijing's resolve to promote domestic brands, such as Warren Buffett-backed BYD Co.

Buyers for BYD's F3DM plug-in hybrid, for instance, could enjoy a roughly 30 percent discount on its price tag of 169,800 yuan ($24,870).

That puts cars such as Nissan Motor Co.'s Leaf at a significant disadvantage and makes the models too expensive for many Chinese buyers.

But the locally made electric New Sail would be eligible for the subsidies, which could run as high as 60,000 yuan a car, giving the Detroit automaker an edge over its rivals, industry observers say.

Green drive

GM's Shanghai venture also plans to launch the hybrid version of its popular Buick New Regal in 2011 as part of its ongoing green auto initiative.

Other foreign automakers are also getting ready to join the green car race.

Nissan, which runs an auto venture with Dongfeng Motor Group, had earlier signed a deal with the municipal government of Wuhan to jointly promote its Leaf in the central Chinese city.

Toyota Motor Corp. also added a Camry Hybrid to its China-made green auto lineup, which also includes the Prius gasoline-electric hybrid.

Volkswagen AG, Ford Motor Co., among others are also working harder than ever to improve the efficiency of their models.

 

UK NEW-CAR SALES SLIDE 22% IN OCTOBER

Sales of new cars in Britain fell 22 percent in October compared with a year ago when an incentive scheme for trading in older models was helping demand, the Society of Motor Manufacturers and Traders said.

The SMMT said the country's full-year 2010 sales are on course to rise by 1.5 percent on last year. It saw improved confidence and demand during 2011 on the back of "slow but steady" economic growth.

"There was a significant fall in October's new-car registrations, reflecting the impact of the scrappage incentive scheme at this time last year and some deterioration in consumer confidence," SMMT CEO Paul Everitt said in a statement. "Total new-car registrations in 2010 are forecast to be 2.026 million units, 1.5 percent up on 2009."

Jointly funded by the government and industry, the scrappage scheme offered motorists 2,000 pounds to trade in cars more than a decade old for more fuel-efficient methods. The subsidy ended earlier this year after starting in 2009.

The UK auto industry faces headwinds in 2011 when government austerity measures start to bite and sales tax rises to 20 percent from 17.5 percent.

"It is possible though that some car sales will be brought forward in the last couple of months of 2010 from 2011 as purchasers look to beat Value Added Tax rising," said Howard Archer, an economist with IHS Global Insight.

"Hopefully, fleet and business sales will hold up better, especially given that many companies have delayed replacing or upgrading their vehicles," he added. "But much will depend on how well the economy and business confidence holds up over the coming months."

Other key EU markets down

The UK is the latest European market to report falling car sales in October versus the strong sales this time last year when scrappage schemes were in full swing.

Spanish car sales plunged 37.6 percent year-on-year in October following a 26.9 percent drop in September. In France sales fell 18.7 percent to 171,449 units. Over the first 10 months passenger sales are down 1.4 percent in the country. New-car registrations in Germany fell 20 percent to 256,775 last month after slipping almost 18 percent in September. Italian car sales fell 28.82 percent to 139,740 units last month.

  

NISSAN RAISES PROFIT FORECAST ON SALES, NEW MODELS

Nissan Motor Co., Japan's third-largest automaker, raised its profit and global unit-sales forecasts after boosting net income by almost four times in the last quarter.

Nissan expects a 270 billion yen ($3.3 billion) profit in the year ending March, compared with an earlier forecast of 150 billion yen, the Yokohama-based company said in a statement today. The carmaker posted 102 billion yen in net income for the three months ended Sept. 30 as sales rose to 2.27 trillion yen from 1.87 trillion yen a year earlier.

“Nissan's forecasts exceed the market's consensus and its own guidance,” said Mitsuo Shimizu, an analyst at Cosmo Securities Co. in Tokyo. “Amid concerns about the global auto industry, investors may react positively to Nissan's performance.”

The maker of the Juke compact crossover follows Honda Motor Co. in raising its profit outlook even as the yen trades near a 15-year high against the dollar, reducing the value of overseas earnings. While Nissan expects to benefit from trimming purchasing costs and the introduction of new cars such as its all-electric Leaf compact, the yen will weigh on earnings during the second half, the company said.

Nissan rose 3.9 percent to 721 yen at the 3 p.m. close of trading on the Tokyo Stock Exchange, before the earnings announcement. The shares have fallen 10 percent this year.

10 new models

The automaker raised its full-year vehicle sales target and now expects to sell 4.1 million units from an earlier target of 3.8 million.

Nissan will also benefit from introducing 10 new models this fiscal year including the Leaf, Micra and Juke compact cars, Chief Operating Officer Toshiyuki Shiga, told reporters in Yokohama.

Even so, the company estimates net income growth may slow during the remainder of the fiscal year. Based on today's revised forecast, Nissan may post profit of 62 billion yen during the six months through March 30. That estimate would be more than two-thirds lower than the fiscal first-half profit of 208 billion yen, according to its statement today.

The strength of the yen which reduced first-half operating profit by 55 billion yen, may cut earnings by 130 billion yen during the second, Nissan said today.

The company today revised its full-year exchange-rate assumption to 84.4 yen to the dollar from an earlier forecast of 90 yen. The company expects the yen to average 80 yen against the dollar in the fiscal second-half, it said.

The dollar traded at 80.97 yen as of 5:07 p.m. in Tokyo after strengthening to 80.22 yen on Nov. 1, the lowest level since April 1995.

Nissan also faces a demand drop in Japan after a government subsidy program ended and an unclear outlook in the U.S., where near 10 percent unemployment forced the Federal Reserve to buy an additional $600 billion of Treasuries.

Tough times ahead at home

“Nissan faces a very difficult situation at home,” said Yuuki Sakurai, who helps oversee the equivalent of $8.7 billion as chief executive officer and president at Fukoku Capital Management Inc. in Tokyo. In the United States, “quantitative easing won't necessarily lead to an improved economy if people are hesitating to borrow because they're worried they won't be able to repay.”

After Japan's government subsidy program for fuel-efficient cars ended Sept. 8, Nissan's deliveries in October plunged 31 percent. Sales in its domestic market rose 15.3 percent in the fiscal first half.

To boost sales, CEO Carlos Ghosn started selling an updated March/Micra subcompact this year. Nissan has shifted Japan production of the model to Thailand, which helps the company reduce impact of the strong yen on exports to other countries in the region.

Nissan's Shiga today said the automaker also plans to cut purchasing costs by 185 billion yen to offset the yen.

The company will begin selling its Leaf electric car next month in Japan, the United States and some countries in Europe. Nissan and partner Renault SA plan to have capacity to build 500,000 electric cars a year by 2012.

 

KWIK-FIT FLEET MEETING LONGER INVESTMENT CYCLES WITH INCREASED SERVICE PROVISIONS

A dominant player in the UK passenger car and light van sector, in which it estimates it has a market share of “75 per cent and growing”, Kwik-Fit Fleet has seen increasing opportunities for the provision of fleet maintenance since the recession – hastening the advance of policies already in play before the financial crisis. Peter Lambert, sales director at Kwik-Fit Fleet told Tyres & Accessories that the extended replacement cycles of many car and van fleets coincide naturally with “increased fleet demand for tyres and mechanical work including vehicle services and MoTs”, while also increasing pressure on fleet managers to ensure older vehicles remain on the road. “We anticipate that fleet demand for all forms of mechanical work at Kwik-Fit centres will continue to increase as all businesses look to minimise vehicle downtime,” concludes Lambert.

In terms of the relative importance of factors such as vehicle downtime and fuel economy to fleet managers, Lambert is more inclined to place them in the same category: “There are a number of issues that are frequently cited at the top of industry surveys and they all ultimately fall under the heading of ‘cost management’. Over the years fuel efficiency and keeping vehicle downtime to a minimum have always been top priorities for fleet managers. In recent years – pre-recession and during the recession – there has been a trend for fleets to extend vehicle replacement cycles. This has been due to the continuing improvements in build quality of vehicles and longer warranties and service intervals introduced by motor manufacturers.

“With an increasing number of businesses extending their fleet replacement cycles, Kwik-Fit Fleet has not only fitted more tyres to fleet company cars and vans, but is also undertaking more mechanical work - MoTs and vehicle services as well as fast-fit maintenance repairs such as on windscreens and air conditioning unit recharging.

“As cost management is such a key focus for fleet operators, they and contract hire and leasing companies have recognised that by using Kwik-Fit Fleet for servicing, MoT and other mechanical work they can save money. As a result, we have a major growth opportunity as our price proposition is fantastic when compared with franchise dealers.”

Kwik-Fit Fleet has extended opening hours on every day of the week, putting it in a good position to service vehicles more promptly. Lambert also believes Kwik-Fit’s typical average cost – commensurate with model-type and mileage – “is up to 20 per cent less than at a franchise dealer. However, for some vehicles servicing costs can be up to 34 per cent cheaper than at a franchise dealer.”

Lambert says that Kwik-Fit Fleet “has experienced growth in 2010 across the fleet sector – small and large fleets, car and van fleets and outright purchase and leased fleets.” The company’s large market share is in part thanks to “significant business partnerships with virtually all of the UK’s top 50 contract hire and leasing companies as defined by the Fleet News ‘FN50’. These include significant sole supply arrangements with many organisations including the likes of Lex Autolease (the UK’s largest contract hire and leasing company) and LeasePlan (the second largest),” says Lambert.

While Lambert was unable to disclose 2010 figures, “in 2009 Kwik-Fit Fleet reported a 10.4 per cent rise in sales - up to £203.6 million from £184.4m in 2008 – notably due to MoTs on company cars and vans increasing 89.7 per cent year-on-year and fleet vehicle servicing rising 54.2 per cent.

Tyres & Accessories reported Kwik-Fit’s first-time launch of a winter tyre programme, which was launched on the back of increased “fleet demand… in the last two years due to the harsh winters we have seen,” says Lambert, who also says the company has been “inundated with calls from public and private sector fleets” since its announcement. One of Kwik-Fit Fleet’s major customers, British Gas announced recently that it is equipping vehicles with winter tyres servicing customers in the Scottish Highlands and Peak District.

Investments in service and feedback

So how is Kwik-Fit Fleet investing in its business in order to meet the growth it is seeing and expects to continue? Lambert told T&A that the areas of investment “to further improve customer service” in the past 12-15 months have been “significant”. 2009 saw the introduction of Cybit’s web-based fleet tracking service to the company’s 220-vehicle mobile van fleet “to manage and analyse mobile worker performance, enhance the organisations employee duty of care provisions and provide a range of customer service enhancements, including a faster delivery of service.” The competition in the mobile segment is described as “increasing” and Kwik-Fit’s aims in using Cybit are “to reduce costs, improve efficiency and at the same time provide innovative customer service.”

In the centre sector, Kwik-Fit Fleet increased the number of centres that could undertake MoT work to 532, while 653 are equipped to undertake vehicle servicing. Kwik-Fit Fleet also launched a free fleet vehicle servicing and MoT collection and delivery service at “a third of the Kwik-Fit centre network - about 220 locations - with a view to the initiative being available nationally”, adding value “to meet demand from Kwik-Fit’s end-user fleets and contract hire and leasing company customers.”

More recently, Kwik-Fit increased its training budget by £1 million – “£3.2m already is invested annually in staff training with staff at all levels of the business attending courses at one of Kwik-Fit’s five Training Academies.” The company is also seeking greater levels of feedback, which Lambert describes as “crucial…as the business strives to remain the dominant force in the UK’s fast-fit marketplace. Therefore the company is doubling of the mystery shopping programme from the fourth quarter of 2010.

Lambert also points to the increased use of the web in its service offering: “During the latter half of 2009 and into 2010 Kwik-Fit Fleet launched its Service24 initiative. It improves fleet driver communication and delivers an enhanced data information service to contract hire and leasing company customers.” Service24 software helps to manage the “pre-determined service standards and rules set by both their employer and leasing company provider.”

In January, Kwik-Fit Fleet launched its Vehicle Health Checks to help companies comply with duty of care legislation, including Tyre Safety Checks, “which now number close on 300,000 a year”. Kwik-Fit Fleet has 15 tyre auditors, who carry out the checks, topping up oil and screenwash and making service recommendations where necessary.

In June, Kwik-Fit Fleet introduced Bosch braking components at all of its UK centres. “We are introducing Bosch brake components as part of our continued commitment to service maintenance and repair, and our desire to continually improve our service to fleet customers. Bosch’s pedigree in brake technology is recognised worldwide and that helps to ensure safer driving and aids company car drivers if critical situation occur on the road. Bosch braking technology provides peace of mind with the fitment of a high specification, quality product.”

  

VAN RISE CONTINUES, TRUCKS BACK FROM NADIR IN UK REGISTRATIONS

The Society of Motor Manufacturers and Traders (SMMT) reports that the upturn in van registrations of recent months continued in October, with 18,147 new registrations making a 22.4 per cent increase on September’s figures. Truck registrations recorded a spectacular-sounding 79.9 per cent rise on September, though that month was represented by the lowest figures in recent memory. 3,158 new trucks were registered.

In year to date figures, 186,701 vans have now been registered, up 18.8 per cent on the same ten months in 2009, while only 27,578 new trucks are on the UK’s roads, down 9.8 per cent year-on-year. “The sustained increase in commercial vehicle registrations provides confirmation that the economy is continuing to recover,” said Paul Everitt, SMMT chief executive.  “Vans continue to lead the recovery, with volumes up for the ninth successive month.  We expect next year will be tough but with slow, steady growth improving confidence and demand.”

  

TYRESENSORS.COM REPORTS MUCH TPMS INTEREST AT BRITYREX

The recent Brityrex exhibition saw Tyresensors.com exhibit featured the company’s range of Schrader OE replacement sensors and service kits, not to mention the firm’s ATEQ line of TPMS trigger tools, which it exclusively distributes in the UK. So how did the exhibition go? “A lot of people were interested in TPMS in generally as well as our parts in particular,” managing director Ian Smith told Tyres & Accessories, adding that the company’s ATEQ tool demos had the effect of drawing visitors in. As a result the company representatives report that they made “a lot” of good contacts, with a real emphasis on the quality of the leads gained.

When Tyres & Accessories spoke to Performance Wheels managing director, Ian Smith, earlier this year, he emphasised the need for tyre businesses to prepare themselves for forthcoming TPMS legislation: “The law is changing – and we all need to be aware of the consequences. With an ever-burgeoning market for TPMS and mandatory status on the horizon, it will be the tyre bays that invest in the technology now that will be ahead of the curve when demand explodes, with a very real opportunity to gain market share. In addition to the trigger tool, we also offer a comprehensive range of replacement TPMS sensors, service kits and workshop tools for every TPMS application…”

So does that explain why the company experienced the interest it has in general and at this year’s show in particular? “With many more TPMS fitted as standard OE, the larges companies in the tyre supply chain have begun to catch on. Also taking a look at what happened in the 2007/08 [the year TPMS became mandatory stateside] US market, which is now booming, has helped make a difference,” Ian Smith explained.

The fact is the chances of a professional tyre bay not encountering the issues surrounding the necessary parts, tools and techniques for changing tyres on wheels featuring this kind of system diminish every day that these businesses continue trading. “Not a tyre bay in the land hasn’t broken a sensor and had to deal with it,” Smith quipped. As a result Tresensors.com is embarking on a strategy that will see the company work with larger garage part suppliers to help ensure they are aware of TPMS and everything that goes with it when they sell products such as diagnostics kits. In this case for example, many depots currently replace sensors but don’t download the necessary data onto the car’s central computer.

Tyresensors.com offers OEM replacement sensors for all makes of car. It also sells the ATEQ range of ‘trigger tools’ that simply plug into the car’s OBDII port to allow the unit to interrogate and update the integrated central electronics system to ‘marry’ new TPMS sensors to the car.

Tyresensors.com’s parent company, Performance Wheels, also showed a number of its latest alloys during the course of the show. Performance Wheels Ltd, which manufacturers and distributes aftermarket Tyresure-branded TPMS units and which launched the Tyresensors.com sensor parts website earlier this year, promoted its TPMS product range at Brityrex. In order to communicate the tyre pressure monitoring message, the company gave away posters for its Tyresure aftermarket TPMS solution, not to mention OE replacement sensor info packs and even an ATEQ Torque tool in an on-stand competition.

 

BATO SELECTS ASA TIRE SYSTEMS AS SOFTWARE PROVIDER

ASA Tire Systems, headquartered in Merrimack, N.H., has been selected by the Consumer Replacement, U.S. and Canada Consumer Tire Sales division of Bridgestone Americas Tire Operations (BATO) as the software provider for its North American consumer tire dealers. ASA will supply the industry's premier point-of-sale (POS) and accounting enterprise software solution. This solution will include a tightly integrated suite of BATO interfaces and other optional add-on modules that will provide Bridgestone's consumer tire dealers with a "robust" software solution to help them grow their businesses. The agreement combines ASA products and BATO interfaces, and brands the new software offering as "CornerStone Powered by ASA" for North American BATO consumer dealers. The new offering provides an option for the single-store operations, as well as multi-store locations, and gives the means to improve productivity, revenues and overall consumer and employee satisfaction.

(Bridgestone Americas Tire Operations -Nashville, Tenn.; ASA Tire Systems [www.asatire.com] -Merrimack, N.H. -Nov. 4)

 

LANXESS URGES NHTSA TO IMPLEMENT FUEL EFFICIENCY LABELING FOR TIRES

Germany-based Lanxess Corp. on Tuesday (Nov. 2) urged the National Highway Traffic Safety Administration (NHTSA) to implement tire labeling and a broader Consumer Information Program on tire fuel efficiency, TechBurgher.pghtech.org reported. "Identifying a system that will provide consumers with more information when purchasing tires is a necessary step considering the vast array of tire choices in the market today," said Lanxess in formal comments submitted to the agency. "Lanxess Corp. strongly supports the development of the Consumer Information Program for replacement tires to educate customers about the impact of tires on motor vehicle fuel efficiency, safety and durability." Lanxess, a leading rubber supplier to the tire industry, noted in its comments that the European Union has already set a timeline for tire labeling. "From 2012 onwards, tires in Europe must be labeled to show their fuel efficiency, wet grip and rolling noise," Lanxess wrote.

(TechBurgher.pghtech.org -Washington, D.C. -Nov. 3)

 

BRIDGESTONE INAUGURATES EXCLUSIVE SELECT SHOWROOM IN INDIA

Bridgestone has announced the inauguration of its exclusive Select showroom in Kolkata, India. The Select showroom boasts of an exclusive Bridgestone retail "Identity and Sales" in line with the global retail philosophy adopted successfully worldwide. The Select outlet "Lamba Agencies Pvt. Ltd.," which is a 1,200-sq.-ft. showroom, will be one of the largest tyre showrooms for customers in India, where they can see and feel the Bridgestone exclusivity, sophistication and progressiveness, the company said. It hosts several customer-friendly facilities.

 

PIRELLI IS OE ON 2011 DUCATI DIAVEL SUPERBIKE

Pirelli Moto and its Diablo Rosso II is original equipment on the 2011 Ducati Diavel, the newest sport lifestyle model from the Borgo Panigale factory matched with Pirelli's latest tyre of the Rosso generation in new 240/45ZR17 sized rear and 120/70ZR17 front. The OE fitment comes as part of a three-year supply agreement with the Italian bike manufacturer. The Diavel is among a number of collaborative special projects with Ducati, and therefore joins the 2010 Ducati Multistrada introduced a year ago and its Pirelli Scorpion Trail tyres in model-specific sizes. Pirelli said the Diablo Rosso II is the ideal choice for the Diavel with a WSBK developed Bi-compound tread and EPT (Enhanced

Patch Technology) matched to Pirelli's patented 0-degrees steel-belt structure. The newly sizes 240/45ZR17 Diablo Rosso II rear tyre features Bi-Compound tread for maximum grip at full lean and long-lasting performance on road. (Pirelli [www.pirelli.com] -Milan, Italy -Nov. 3)

 

BMW PROFIT LAGS AUDI, MERCEDES DESPITE BIG RISE IN Q3 NET INCOME

BERLIN (Bloomberg) -- BMW AG, the world's biggest maker of luxury cars, made less money in the third quarter on its cars than Volkswagen AG's Audi and Daimler AG's Mercedes-Benz even as the revamped 5 series boosted profit.

BMW posted an automotive operating profit margin in the quarter of 8.1 percent, trailing Mercedes' 9.5 percent and Audi's 11 percent, according to data from the luxury carmakers. BMW today reported an 11-fold increase in net income to 874 million euros as the 5 series and X1 boosted sales 36 percent.

BMW's lower margin shows its vulnerability to its German rivals, which are part of larger groups. Audi benefits from sharing costs with other VW brands, while Daimler is also the world's biggest maker of trucks and buses.

BMW is responding by expanding the model lineup to secure its independence and fend off Audi, which aims to topple BMW as the luxury leader by 2015.

“It's a huge challenge for BMW and Mercedes to compete with the scale available to Audi through Volkswagen,” said Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen. “Audi clearly has the better cost position.”

BMW fell as much as 1.70 euros, or 3.3 percent, to 50.65 euros and was down 0.7 percent as of 14:21 CET in Frankfurt trading. The shares have gained 63 percent this year, valuing the carmaker at 33.2 billion euros ($46.5 billion).

BMW, which introduced remakes of the 5-series sedan and X3 SUV this year, as well as the all-new Mini Countryman, expects comparisons with rivals to improve as new models roll out. The 5 series and X3 compete with Mercedes' older E class and GLK models.

‘Major offensive'

“We're at the beginning of a major model offensive,” Chief Financial Officer Friedrich Eichiner said Wednesday on a conference call. “We're on an upward trend.”

Mercedes and Audi are also pushing out new models. Audi, which plans to increase its lineup to 42 vehicles by 2015 from 34 last year, introduced the new A1 subcompact and A7 coupe this year and will roll out a revamped A6, which competes with the 5 series, in 2011.

Mercedes is overhauling the SLK hardtop roadster and CLS coupe for next year and will start an expansion of its small-car models late in 2011.

Luxury-car sales are rebounding from the financial crisis as demand advances in China and rebounds in the United States, the world's top two auto markets.

September marked the highest output of Mercedes cars for the month in the company's 120-year history, while Audi targets record sales in 2010 of 1.08 million vehicles. BMW aims to deliver more than 1.4 million car this year, a level topped only in 2007 and 2008.

Lower profitability

Munich-based BMW's profit per vehicle averaged 2,300 euros this year, compared with Audi's 2,346 euros and Mercedes' 3,395 euros, Dudenhoeffer estimated. Stuttgart-based Mercedes, which typically commands higher prices than Audi and BMW, has the most ambitious profit targets.

The Daimler unit aims to generate operating margins of at least 10 percent by the second half of 2012. BMW's goal is to generate sustainable profit margins of at least 8 percent by 2012, while Audi is also targeting 8 percent for the long term.

“The record third-quarter earnings can't necessarily be extrapolated going forward,” Audi spokesman Armin Goetz said in a telephone interview from the carmaker's headquarters in Ingolstadt.

To counter Audi's scale advantage, Daimler CEO Dieter Zetsche swapped 3.1 percent stakes with Renault SA and Nissan Motor Co. in April. The aim of the partnership is to make Mercedes and its Smart unit more competitive in upscale compact cars. The automakers will cooperate on small engines and share a new platform to be used for the Smart subcompact and Renault Twingo.

Target raised

BMW cooperates with PSA/Peugeot-Citroen SA in a partnership focused on four-cylinder gasoline engines and hybrid components for front-wheel-drive vehicles. Dudenhoeffer said BMW may need to deepen the cooperation with Peugeot to lower costs and keep pace in profitability.

BMW CEO Norbert Reithofer's Wednesday raised his target for automotive operating profit to more than 7 percent of sales this year from a forecast in August of a 5 percent margin. The higher guidance disappointed some investors.

“The profit margin looks clearly weak, much lower than Audi and Mercedes,” said Adam Hull, a London-based analyst with WestLB, who has a “reduce” rating on the shares. “The guidance is low. They should be able to do better.”

 

ASTON MARTIN IS PROFITABLE AND THE NEW CYGNET WILL BE A CULT ICON, CEO BEZ SAYS

BERLIN -- Aston Martin was profitable through the economic crisis and its new Cygnet minicar will be a cult hit like the brand's models made famous by James Bond movies, CEO Ulrich Bez said.

After two decades of ownership, Ford Motor Co. sold the British luxury sports car brand for $674 million in 2007 to a group of investors led by Kuwait's Investment Dar.

Bez said not many people thought Aston Martin would survive alone but the company was profitable through the crisis and will be profitable in 2010 and the coming years.

"My investors are happy," Bez said at the Automobilwoche industry conference here. Automobilwoche is an sister publication to Automotive News Europe.

The CEO, who has led Aston since 2000, said the company will not look for an industrial partner, despite the industry trend for automakers to seek alliances to cut costs.

Since Ford cut the brand loose, Aston has been successful as an independent company, funding its products alone, and will remain so, Bez said.

Aston Martin's forthcoming Cygnet has surprised brand purists because the tiny 2+1 minicar -- just a little larger than a Smart ForTwo -- is a major departure from the company's usual big high-performance sports cars.

Bez said he believes the Cygnet has the appeal to make it a cult icon, just like the DB5 that James Bond drove in hit movies.

"The Cygnet is exclusive and bears an exclusive brand name," he said, adding that the car's stylish design and innovative features make it "advanced, iconic and iconoclastic."

Aston Martin will sell about 3,000 Cygnets a year, priced from 30,000 euros, Bez said.

The car is a reworked, upscale version of the Toyota iQ and will be assembled at Aston Martin"s Gaydon factory in England starting in early 2011.

Bez said the Cygnet will help Aston Martin reduce its fleet CO2 emissions in line with demands from legislators in Europe and the United States.

 

KEY EUROPEAN MARKETS SUFFER DOUBLE-DIGIT OCT. SALES DECLINES

Volumes nearly match lows from worst of 2008-2009 crisis

German, French, Spanish and Italian car sales plunged in October as Germany, Italy and Spain continued to suffer from the end of their scrapping schemes and France's reduced subsidy was not enough to prevent a drop versus the strong sales this time last year.

The subsidies launched to encourage drivers to trade in old cars were highly successful but carmakers are now facing tough comparisons with the booming sales last year when schemes boosted sales.

Spain's car scrapping scheme ended at the start of July, coinciding with an increase in value-added tax. Spanish car sales fell 37.6 percent year-on-year in October following a 26.9 percent drop in September, industry association ANFAC said.

France still has a 500 euro (about $700) scrapping bonus in place until the end of the year. Sales fell 18.7 percent in October to 171,449 units. Over the first 10 months passenger sales are down 1.4 percent in France.

New-car registrations in Germany, Europe's largest economy, continued to shrink in October, falling 20 percent after slipping almost 18 percent in September, according to the German motor transport authority (KBA). Automakers sold 256,775 cars in Germany last month. Through 10 months, sales in Germany were down 26.8 percent to 2,423,627 units.

Germany's scrappage scheme ended at the beginning of September last year.

Italian car sales fell 28.82 percent in October, to 139,740 units, according to the Transport Ministry. Reuters calculations showed Fiat S.p.A. had a 27.47 percent market share last month, below its target of 30 percent.

European carmakers are increasingly relying on fast-growing emerging markets to boost their sales. On Monday South Korean and Indian carmakers posted strong October sales, but their Japanese counterparts saw double-digit declines in domestic sales.

Dramatic decline

"Only in the major crisis of 1993 and in the darkest period of the current crisis -- from the end of 2008 to the beginning of 2009 -- have steeper falls been recorded," said industry think tank Promotor in a statement.

In France, "(October) was bad, but we were expecting it because we are starting to enter the period in which 2009 saw its figures inflated by the scrapping incentive," said a spokesman for industry association CCFA.

"November and December sales figures will be even worse," he said. However, the French market should see sales of over 2 million units for the full year, the spokesman added.

In 2009 the French market saw sales increase by 10.7 percent to 2.3 million units, with customers flocking to showrooms toward the end of the year in particular, to take advantage of the full 1,000-euro scrapping scheme before it decreased at the start of 2010.

Flavien Neuvy, head of the automobile industry research department at French consumer credit organization Cetelem, said: "With the end of scrapping schemes, the French and European markets are returning to their fundamentals, and these are not dynamic."

"Drivers drive less and less, cars are more and more reliable and customers keep them longer and longer -- eight and a half years on average," he said. "The question is no longer how the end of the year will turn out, but what 2011 will be like."

In October, Europe's second-biggest carmaker, PSA/Peugeot-Citroen SA saw a 17.3 percent decline in its group sales in France, while Renault SA's group sales dropped 21.9 percent year-on-year last month.

For the full year, car registrations are expected to fall between 20 percent and 25 percent. In 2009, about 3.8 million new cars were registered in Germany. The German auto industry estimates that about 2.9 million cars will be registered in the country in 2010.

Full-year sales in Italy are expected to slip to 1.95 million units from 2.16 million units last year – a decline of 10 percent.

In Belgium, which never had a scrappage scheme, car sales rose 9.68 percent in October.

 

RUBBER COMMODITY PRICES APPROACH ALL TIME HIGH

According to the Financial Times, the price hike has been exacerbated by fears over supply shortages as heavy rain has impacted production in key rubber-producing areas in Asia.

"The rubber price has tripled in two years, surpassing the record level set in 1952 when fears about the potential spread of the Korean War triggered panic buying," the FT reported.

"That is putting pressure on manufacturers to raise prices or face lower margins. Major tyre companies including Bridgestone, Michelin, Goodyear and Continental have raised prices by 5-15 % this year - and some businesses have announced a further round of price increases."

Lim Cheong Guan, executive director of the world's biggest rubber glove manufacturers, Malaysia's Top Glove, told the FT it was forced to raise prices "in order for us to sustain our business".

Other rubber products including condoms are expected to see dramatic price rises due to the hike in the cost of commodity rubber.

Analysts expect prices to remain high. While supply has disappointed, demand is rebounding from the lows of the financial crisis.

Global light vehicle sales will rise 10.5% this year, according to consultancy JD Power, while tyremaker Pirelli estimates demand for truck tyres has risen by more than a half in markets such as China so far this year.

Jom Jacob, senior economist at the Association of Natural Rubber Producing Countries, told the FT: "The concerns over natural rubber supply are likely to persist until the end of 2011."

 

WINTER TIRES WILL BE SCARCE IN TWO WEEKS IN OTTAWA AREA

If winter tires run out this year, it will probably happen in the next two weeks, says an Ottawa-area dealer, WordPress.com reported. "The demand is very high, the supply short," said Lee Troke, a sales representative at Prestige Tire & Auto Service in Nepean, Ont. "We can't keep the tires in stock fast enough." There was a tire shortage last year, after Quebec passed a law in 2008, making winter tires mandatory. Mr. Troke said so far, the suppliers have been good, and so have sales. "A month ago, we were doing about $2,000 a day. Right now, we're sitting at $5,000 to $6,000," he said. And, they're expecting business to pick up.

 

INDIAN TYRE INDUSTRY SEEKS EASING OF IMPORT DUTY AS RUBBER PRODUCTION SLIPS

With the Rubber Board scaling down the projections for natural rubber growth in India, the tyre industry has expressed dismay over the impending rubber crisis, The Hindu Business Line reported. The scaling down of natural rubber growth projections will deepen the rubber availability crisis in the country, as the gap between availability and its offtake has been widening, according to the Automotive Tyre Manufacturers Association (ATMA). Quoting from the Association of Natural Rubber Producing Countries' (ANRPC) statistics, ATMA pointed out that India has scaled down the supply anticipated for this year to 8,44,000 tons from the earlier forecast of 8,79,000 tons largely on account of unseasonal heavy rains during October. The supply is anticipated to grow only at a much smaller rate of 2.9 percent against 7.9 percent anticipated earlier, it pointed out. With rubber prices ruling at all-time high levels, ATMA has asked for easing the hefty 20-percent import duty on natural rubber, which is hurting bottom lines of tyre companies.

(The Hindu Business Line -Kochi, India -Nov. 2)

 

INDIAN TYRE FIRMS BUY RUBBER AT RECORD $4.33 A KG

Indian tyre makers on Monday (Nov. 1) bought natural rubber at Rs 192.5 ($4.33) a kg, a record high as unseasonal rains tightened supply in the world’s fourth biggest producer, three dealers said, Business-Standard.com reported, citing Reuters. Tyre makers bought RSS-4 rubber (ribbed smoked sheet) paying as much as Rs 19,250 a quintal at Kottayam, a key spot market in southern state of Kerala, higher than Rs 19,100 they paid last month. Earlier in the day, the benchmark rubber November contract on the National Multi-Commodity Exchange (NMCE) hit a contract high of Rs 19,837 a quintal, the highest level for the near month contract since futures trade launched. “Lower supplies are pushing up prices...rainfall is disturbing tapping. On weekend, Kerala received rains,” said Ibrahim Jalal, treasurer of The Indian Rubber Dealers Federation (IRDF). Kerala accounts for nearly 90 per cent of the country’s output. India is likely to produce less than 85,000 tonnes of natural rubber in October, down 10.5 per cent from earlier estimate.

(Business-Standard.com [Reuters] -Mumbai, India -Nov. 2)

 

SCHRADER LAUNCHES FIRST PATENTED OE-REPLACEMENT TPMS SENSOR AT SEMA SHOW

Schrader of Altavista, Va., has launched at the SEMA Show EZ-Sensor, the automotive industry's first patented OE-replacement TPMS sensor that can be programmed to function across diverse car makes and models. EZ-Senor will help aftermarket retailers eliminate lost sales, simplify the TPMS repair process and optimize inventory levels. EZ-Sensor uses patented Schrader technology, which delivers a programmable sensor that requires only a single programming tool -a tool that most service and repair facilities already use today. Currently, there are more than 150 SKUs of tire sensors fitted to North American vehicles equipped with TPMS. This can mean money tied up in

inventory for sensors that are rarely used or long waits in the service bay waiting for the right sensor to be delivered. With this launch, one EZ-Senor SKU covers more than 60 percent of TPMS-enabled vehicles in the U.S. Schrader's goal is to have two EZ-Sensor SKUs cover an estimated 90 percent of the market by the end of Q3 2011, if not sooner.

 

German car exports set to increase 21%, report says

November 1, 2010 13:42 CET

BERLIN (Bloomberg) -- German auto exports may increase by 21 percent this year to 4.15 million units, driven by a rise in demand in China and the U.S., a paper reported, citing Matthias Wissmann, head of the VDA industry group.

The VDA estimates that auto production in German factories may increase 10 percent this year, to 5.45 million units, Die Welt cited Wissmann as saying.

 

German car market shrinks in October, source says

November 2, 2010 12:31 CET

FRANKFURT (Reuters) -- New-car registrations in the German car market, Europe's largest, continued to shrink in October after falling almost 18 percent in September, a source familiar with the figures told Reuters.

"The trend in September has continued in October," the person said on Tuesday, without being more specific.

A fall in demand compared with the year-earlier month was exacerbated by the ending of last year's government-sponsored scrapping scheme, which had boosted car sales in Germany for much of 2009.

Germany's 5 billion euro ($6.85 billion) pot of tax money to subsidize new-car purchases was exhausted at the beginning of September 2009, ushering in months of extremely weak demand as thousands of purchases planned for this year were pulled forward to take advantage of the scheme.

In September German new-car registrations fell 17.8 percent to 259,748 vehicles.

For the full year, car registrations are expected to fall between 20 percent and 25 percent, the person familiar with the figures said. In 2009 about 3.8 million new cars were registered in Germany.

The German auto industry estimates that about 2.9 million cars will be registered in the country in 2010.
 

Daimler gets 7 billion-euro credit to back liquidity
Automotive News Europe -- November 2, 2010 11:46 CET

LONDON (Bloomberg) -- Daimler AG signed a 7 billion-euro ($9.8 billion) credit line to serve as a liquidity reserve.

Daimler doesn't plan to use the five-year revolving credit, which will replace the company's $5 billion and 3 billion-euro credit lines before they expire, it said in a statement Tuesday.

“With this credit line, we have secured today's favorable conditions for the next five years and have gained a solid liquidity for the long term,” Chief Financial Officer Bodo Uebber said in the statement.

Daimler signed the transaction with more than 30 banks after the deal was “significantly oversubscribed,” it said.

Deutsche Bank AG, Societe Generale SA and UniCredit SpA coordinated the facility, which pays an initial interest at 60 basis points more than the euro interbank offered rate when it's drawn, compared with a 160 basis-point margin under a credit line it agreed last year, according to data compiled by Bloomberg. A basis point is 0.01 percentage point.

Standard & Poor's and Fitch Ratings rank Daimler's debt BBB+, the third-lowest investment grade. Moody's Investors Service rates it a level higher at A3.

 

Fiat could boost production in U.S., Poland, Serbia if Italy plan fails

Luca Ciferri - Automotive News Europe -- November 1, 2010 06:01 CET

TURIN – The United States, Poland and Serbia could benefit from expanding production volumes if Fiat S.p.A.'s plan to boost output in Italy is derailed by uncooperative unions.

Fiat CEO Sergio Marchionne has warned that if he can't negotiate more efficient work rules for the automaker's Italian assembly plants, he will consider other production locations.

“Certainly those vehicles that are required for western European consumption would have to find a production home, and we have other [facilities] that are available to take their place,” Marchionne told analysts on October 21.

Last April, Fiat unveiled a new plan to expand car production in Italy from 650,000 units in 2009 to 1.4 million units in 2014, but Marchionne wants union support for more efficient production, including an 18-shift workweek instead of the current 10-shift week.

Marchionne has not spelled out his options if his plan – called Fabbrica Italia (Italian factory) – fails to win complete union support. But sources say Fiat would consider the following:

• Expanding annual capacity of its assembly plant in Tychy, Poland, to 780,000 units, up from 606,000 units built last year

• Doubling the annual output of its Serbian joint venture to 400,000 units

• Relocating production of a future Lancia/Chrysler compact sedan plus the Alfa Romeo Giulia to Chrysler plants in the United States.

Fiat has already said it will build the replacements for the Idea and Multipla minivans in Serbia instead of in its plant in Turin. The carmaker also shifted production of the Chrysler 200 successor to the United States. Sources say Fiat had planned to build the redesigned 200 sedan in Turin alongside the Alfa Romeo Giulia starting in 2013.

A Fiat spokesman declined to comment on future production allocations.

Politicians slam Marchionne

In an attempt to ease public opposition to Fabbrica Italia, Marchionne described his plans on a popular Italian TV show last month. He said none of the company's five Italian plants can match the efficiency of Fiat's plant in Poland. “Fiat would do more if it took Italy out of its results,” Marchionne said during the TV program, adding, “We cannot continue to manage operations at a loss forever.”

Italian politicians reacted strongly to Marchionne's comments. “If Fiat is a giant, this is because for a very long time Italian taxpayers have prevented Fiat's collapse,” Gianfranco Fini, the speaker of Italy's Lower House, said.

After the television program, Fiat Chairman John Elkann said Marchionne did not mean that the automaker will abandon its Italian home. “Marchionne posed a competitiveness problem for Italy as a whole and it is on this that we have to act,” Elkann said.

Under the Fabbrica Italia plan, Fiat pledges to invest 20 billion euros ($28 billion) in Italy if the unions help make plants more efficient. Marchionne needs the support of all five Italian metalworker unions for his planned changes to working practices, but the left-leaning Fiom union has objected to many of the new rules.

Time running out

Some politicians and union leaders have raised doubts about Fiat's commitment to Italy, now that Fiat owns a 20 percent stake in Chrysler Group. Fiat also is expanding in emerging markets such as Brazil, Russia, India and is planning to re-enter China in 2012.

Marchionne's April plan called for Alfa Romeo, Fiat, Lancia/Chrysler and Jeep to launch 34 new and redesigned models in Europe over the next four years.

He says Fiat is running out of time to reach a deal with the unions. “It is my sincere hope and my expectation that all these issues will be resolved by the completion of this year,” he told analysts on October 21.
 

 

EU COMMERCIAL VEHICLE REGISTRATIONS UP 6% OVER THREE QUARTERS

In September, registrations of new commercial vehicles rose 13.7 percent in the EU, according to the European Automobile Manufacturers' Association (ACEA). Three quarters into the year, the increase was 6.0 percent across categories. From January to September, a total of 1,300,429 new vehicles were registered in the EU. In September, new van registrations amounted to 141,713 units, or 14.6 percent more than in the same month last year. Nine months into the year, the EU registered 1,098,104 new vans, or 8.6 percent more than the same 2009 period. September results in heavy trucks, overall registrations in the EU increased 20.4 percent. From January to September, the EU totaled 120,152 new heavy-truck registrations, down 5.5 percent from a year ago. In September, truck registrations were up 12.7 percent to 26,187 units. Three quarters into the year, new truck registrations were down 4.9  Bus and coach registrations declined in September 10.4 percent, and dropped 12.3 percent from January to September.

 (European Automobile Manufacturers' Association [www.acea.be] - Brussels, Belgium - Oct. 26)

 

EU truck registrations up in September

26 October 2010 - ERJ staff report (DS)

Brussels -- In September, registrations of new commercial vehicles rose by 13.7 percent in the EU. All segments posted growth, except for buses (-10.4 percent). Three quarters into the year, the increase was 6.0 percent across categories, mainly supported by demand for vans. From January to September, a total of 1,300,429 new vehicles were registered in the EU.

September results in the segment of heavy trucks were boosted by growth in many of the major markets, including Spain (+18.2 percent), Germany (+29.6 percent), France (+43.4 percent) and Italy (+51.1 percent). Though registrations contracted in the UK (-14.3 percent) and the Netherlands (-11.2 percent), overall registrations in the EU increased by 20.4 percent. From January to September, the EU totaled 120,152 new truck registrations, or 5.5 percent less than in the first nine months of 2009. Among the major markets, Germany (+7.3 percent) and Spain (+12.9 percent) performed better than last year. Italy (-7.7 percent), the UK (-13.8 percent), France (-14.7 percent) and the Netherlands (-30.5 percent) all faced a downturn.

In September, registrations of trucks were up 12.7 percent, with Spain (+7.1 percent), Germany (+32.2 percent), France (+35.0 percent) and Italy (+38.3 percent) mainly contributing to the upturn. New registrations dropped in the Netherlands (-16.8 percent) and the UK (-29.0 percent). In total, 26,187 new trucks were registered in the month, or 12.7 percent more than in September 2009. Three quarters into the year, Germany (+7.8 percent) and Spain (+6.2 percent) were the only major markets to post growth, leading to a general 4.9 percent downturn across the region. New truck registrations were down 8.8 percent in Italy, 12.0 percent in France, 15.3 percent in the UK and 29.1 percent in the Netherlands.

In September, new van registrations amounted to 141,713 units, or 14.6 percent more than in the same month last year. While the Italian market remained stable (-0.1 percent), the Spanish dropped by 2.8 percent, and the German (+20.6 percent), French (+21.7 percent) and British (+24.4 percent) performed similarly. Nine months into the year, the EU registered 1,098,104 new vans across the EU, or 8.6 percent more than over the same period in 2009. In absolute figures, France was the largest market (+12.1 percent), followed by the UK (+18.3 percent), Germany (+12.5 percent), Italy (+10.2 percent) and Spain (+14.1 percent).

The segment of buses and coaches was the only one to decline in September. Negative results in France (-35.7 percent), the UK (-11.1 percent) and Spain (-2.2 percent) led to an overall 10.4 percent downturn. Only Italy (+34.3 percent) and Germany (+26.3 percent) registered more vehicles than in the same month a year ago. Cumulative figures from January to September showed a 12.3 percent drop. The growth recorded in Sweden (+49.7 percent) and Italy (+20.4 percent) did not counterbalance the decrease noted in Germany (-8.8 percent), the UK (-9.6 percent), France (-20.1 percent) and Spain (-20.7 percent).

 

EU COMMERCIAL VEHICLE REGISTRATIONS UP 6% OVER THREE QUARTERS

In September, registrations of new commercial vehicles rose 13.7 percent in the EU, according to the European Automobile Manufacturers' Association (ACEA). Three quarters into the year, the increase was 6.0 percent across categories. From January to September, a total of 1,300,429 new vehicles were registered in the EU. In September, new van registrations amounted to 141,713 units, or 14.6 percent more than in the same month last year. Nine months into the year, the EU registered 1,098,104 new vans, or 8.6 percent more than the same 2009 period. September results in heavy trucks, overall registrations in the EU increased 20.4 percent. From January to September, the EU totaled 120,152 new heavy-truck registrations, down 5.5 percent from a year ago. In September, truck registrations were up 12.7 percent to 26,187 units. Three quarters into the year, new truck registrations were down 4.9  Bus and coach registrations declined in September 10.4 percent, and dropped 12.3 percent from January to September.

 (European Automobile Manufacturers' Association [www.acea.be] - Brussels, Belgium - Oct. 26)

 

Volvo recalls US trucks for incorrect tyre labels

25 October 2010 - ERJ staff report (TB)

Washington DC -- Volvo Trucks North America is recalling 1,926 trucks for possible incorrect tyre information on the vehicle certification labels.

The trucks are models VHD, VNL and VNM, model years 2008-2011, and model VT, model years 2008-2010.

The trucks were manufactured between Aug. 13, 2007 and March 26, 2010, Volvo told the National Highway Traffic Safety Administration (NHTSA). The incorrect information, the truck maker said, could cause drivers to load their trucks beyond a safe level for their tyres.

Volvo will inspect the certification labels and replace any with faulty tyre information. It expects to begin the recall by Dec. 1. Vehicle owners may call Volvo at 800-458-1552.

 

BRIDGESTONE TO EXPAND PRODUCTION CAPACITY AT KITAKYUSHU PLANT (UPDATE)

Bridgestone plans to expand production capacity of its plant in Kitakyushu, Japan, to address the continuing increases in global demand for large and ultra-large off-the-road radial tires used on construction and mining vehicles. Bridgestone will also expand production of steel cord used in large and ultra-large ORR tires manufactured at its plant in Saga, Japan. The total investment for both expansions will be about 24 billion yen ($297 million), and production is scheduled to begin in January 2013. Production capacity at the Kitakyushu Plant is scheduled to increase 130 tons per day when the expansion is completed in the second half of 2013. Because of the growth the company saw in the ORR tire market, Bridgestone initiated a second-phase expansion of production capacity at the Kitakyushu Plant in April 2010, following on from its start-up operations at the plant in June 2009. Bridgestone is now implementing a third-phase expansion of production in order to meet the growing needs of its customers.

 (Bridgestone Corp. - Tokyo, Japan - Oct. 25)

  

TYRE PRODUCTION IN INDIA UP 29% IN APRIL-AUGUST

A sharp rise in automobile sales led to an increase in domestic tyre production, Business-Standard.com reported. Overall tyre production in India during April-August increased 29 percent. During that period, all major tyre companies produced a total of 47.1 million tyres, against 36.7 million in the same period last year. According to the Automotive Tyre Manufacturers' Association (ATMA), 65 percent growth was registered in the scooter segment, 44 percent and 43 percent in three-wheeler tyre and passenger-car segment, respectively. Despite a sharp rise in natural rubber (NR) prices, production grew due to the rise in commercial vehicle sales. According to the Society of Indian Automobile Manufacturers (SIAM), the sale of commercial vehicles rose 41.59 percent in April-September of the current year. Car sales increased 33.58 percent, while two-wheelers saw an increase of 25.86 percent. This resulted in an increase in tyre production, especially in the original equipment segment.

 (Business-Standard.com - Kochi, India - Oct. 22)

  

Bridgestone-Bandag arrived in Europe: full organizational integration
22.10.2010

The full organizational Integration of Bandag in Bridgestone Europe has done - the managers of the merged company Akihito Ishii, Gerry Duffy (lately, Bridgestone boss in Germany), Steven Janssens and Rita Broekmans (from left) explain the latest developments and status quo

In December 2006, the message to the world was, Bridgestone wanted the retreading company buy Bandag for more than a billion U.S. dollars, asked themselves many observers, as such - by the competition enforcement officers later approved - elephant wedding would probably change the European market. Only now, years later, notify the manager of Bridgestone Europe "full organizational integration" by Bandag EMEA and present new tires and retreads as integral parts of a growing business segment: the fleet. On the way in this new role as part of a larger whole Bandag in Europe has changed significantly - but also traces left in the Bridgestone Group. Bridgestone was the 1st July 2007 officially accomplished the acquisition of US-retreading specialist as the starting point for numerous changes, such as Bandag for itself at that time, it became clear that the business of the fleet is becoming more demanding. Distribution channels had to be expanded and deepened, the offer retreaded tires to be added. While other tire manufacturers - particularly Michelin - had built up a dominant position, it was recognized at Bridgestone backlog. Bandag also at the same time trying to play with the big fleets. The between-term successful fleet concept that is now under the name "Mega Fleet known suffering, then, when there was € Fleet was central to a flaw: war Bandag and is not a new tire in the staffing of the company in Europe and a presence in the area never mind. The combined companies was a temptation that might not resist the Japanese. 
 

Volvo Launches UK Winter Tyre Programme

Created: October 22, 2010 12:47:00 PM

Volvo Car UK has announced the launch of its new Winter Tyre Programme, which offers drivers the opportunity to purchase a set of alloy wheels and Continental or Pirelli winter tyres. For a twice yearly charge, Volvo is also offering storage of the off-season tyres and fitment when it is time for the changeover. Volvo says the scheme is “a response to last January’s heavy snowfall, which saw the coldest temperatures since 1963 and icy conditions that caused misery for millions of motorists”.

Lee Berrell, Aftersales manager at Volvo Car UK, said: “Volvo winter tyres cost no more than normal tyres, but they could stop you at shorter distances regardless of how bad the weather gets. In fact, conditions don’t even have to be that dire before stopping distances are seriously affected.

“To be safe, it is recommended that you switch to a set of winter tyres when the temperature drops below 7 degrees Celsius. In the UK, that’s usually between October and March – so now’s the time to benefit from the Volvo Winter Tyre Programme.”

The alloy wheel and tyre packages start from £949+VAT and the range covers a selection of Volvo models, including the most popular fitments on existing models. Customers can choose to store their summer wheels and tyres at home during winter or, for an additional cost, with Volvo. This can be either with their local dealership, or using Volvo’s ‘Tyre Hotel’ where the spare set of wheels and tyres are stored and the correct wheels for the season fitted every six months, for a twice yearly charge of £85 (including VAT). Pirelli tyre packages start from £949+VAT and Continental packages from £999+VAT.

 

Fiat lifts Europe sales outlook; remains more cautious than rivals

Luca Ciferri - Automotive News Europe | October 25, 2010 06:01 CET

Fiat S.p.A. has lifted its European new-car sales outlook for the second time this year, but the automaker's forecast remains more conservative than those of rivals and analysts.

Fiat expects total passenger-car sales in Europe (all EU members plus Iceland, Norway and Switzerland) to decline about 7 percent to 13.47 million, the carmaker said Oct. 21.

In July, Fiat predicted a 10 percent decline. The forecast given in April was for a 15 percent dip.

Automakers sold 14.48 million cars in Europe last year, according to industry association ACEA.

Fiat rival PSA/Peugeot Citroen said last week that it expects European sales to decline about 5 percent this year. PSA previously forecast a dip of about 7 percent.

Earlier this month, J.D. Power Automotive Forecasting changed its European volume prediction to a 6.4 percent decline from a 6.9 percent slide it had forecast in September.

Financial analysts at Goldman Sachs predict a 6 percent dip for Europe this year.

Hurt by Germany, Italy
Fiat said it expects a double-digit decline for Europe's new-car sales in the current quarter due to struggling markets such as Germany and Italy. Germany's sales were down 27.5 percent through September after being artificially inflated by government scrapping subsidies given in 2009 to maintain or boost registrations during the recession.

Europe's total new-car registrations were down 3.4 percent to 9.99 million through three quarters, according to ACEA.

Italy's sales are down 4.4 percent to 1.54 million units after nine months, but Fiat expects a decline of about 30 percent in the current quarter when compared with the record volume achieved during the same period last year as people took advantage of the final months of the country's scrapping program.

Fiat is more optimistic on light commercial vehicle sales, which it sees growing 5 percent this year in Europe and about 25 percent in Brazil. Fiat also expects Brazil's passenger-car sales to close the year up 2 percent to beat the record of 2.52 million units sold last year.

Brazil passed Germany in August to become the world's fourth-largest auto market bases on car and LCV sales. Brazil now trails China, the United States and Japan.

Through eight months, Brazil's car and LCV sales were up 8.4 percent to 2.08 million while Germany's volume fell 27.3 percent to 2.03 million, according to data from market researchers JATO Dynamics.

Fiat is Brazil's top-selling car brand and also is No. 1 in LCVs. Hefty profits from its Brazilian operations are keeping Fiat's auto operations in the black despite heavy losses in Europe.

 

Fiat would perform better without Italy, Marchionne says
Automotive News Europe | October 25, 2010 06:01 CET

MILAN (Reuters) -- Fiat S.p.A. would perform better without its money-losing Italian plants, CEO Sergio Marchionne said.

Not a single euro of the 2 billion euros of trading profit that Fiat is targeting for 2010 will come from Italy, where all Fiat passenger-car plants are loss-making, Marchionne told the television program Che tempo che fa on Sunday.
"Fiat would do more if it took Italy out from its results. We cannot continue to manage operations at a loss forever," Marchionne said.

Marchionne has clashed with domestic unions after engaging in an unprecedented battle to improve productivity at Fiat that may have repercussions for Italy's whole rigid industrial system.

He has pledged to invest 20 billions euros ($27.83 billion) in Italy if it gets more labour flexibility at five Italian car factories, which all together cannot match the productivity of Fiat's single Polish plant

Fiat, which owns 20 percent of Chrysler Group, surprised analysts last week as it upgraded its 2010 guidance for trading profit well above forecasts. A Fiat, trading profit is earnings before interest, taxes and one-time gains or losses. Yet, Italy will not contribute to Fiat's expected profit.

Marchionne plans to close Fiat's Termini Imerese plant in Sicily and he has won backing from a majority of workers at the company's Pomigliano D'Arco plant near Naples to introduce some landmark changes to the national labor contract. However one key union opposes the plans.

If the new working agreement is implemented, Fiat will manufacture its new Panda minicar at the Pomigliano D'Arco plant.

As he tries to introduce more labor flexibility, Marchionne has also proposed to reduce the time allotted for breaks at Italy's Melfi car plant, in exchange for financial compensation.

All of these proposed changes are part of the so-called Fabbrica Italia (Factory Italy) project, Marchionne's vision to put Fiat's industrial system at par with European peers.

"The real problem is not the reduction of the time allowed for breaks, the real problem is competitiveness," Marchionne said in the television interview.

"Our proposal aims to give Italy, and Fiat, the ability to compete with neighbouring countries," he added, promising workers' salaries would rise along with efficiency.

Marchionne is facing resistance from Fiom -- a key, left-leaning union which opposes the plans.

Marchionne speaks "as if Fiat were a foreign multinational that has to decide if wants to invest in Italy," Giorgio Airaudo, in charge of the car sector for Fiom, said in reaction to the CEO's comments on Sunday.

 

VW increases profit sixfold on China, forecasts slower Q4 growth
Automotive News Europe | October 25, 2010 06:01 CET

BERLIN (Bloomberg) -- Volkswagen said nine-month profit jumped more than sixfold, beating analysts' estimates. The company also forecast that growth in the current quarter will slow.

Net income was 4 billion euros ($5.6 billion), compared with 655 million euros a year earlier, VW said Friday. Analysts predicted profit of 2.8 billion euros, the average of four estimates compiled by Bloomberg.

Sales gained 20 percent to 92.5 billion euros. VW didn't break out third-quarter figures.

VW, whose profit is driven by the Audi luxury unit and emerging markets such as China, said the pace of growth in the first nine months won't continue “as strongly” in the fourth quarter.

“They're fairly cautious on the outlook,” said Juergen Pieper, a Frankfurt-based analyst at Bankhaus Metzler. “The results were extremely good and VW is well positioned and faces no concrete risks for a notable weakening of its business.”

Porsche merger
Nine-month sales at VW's seven passenger-car brands, including Audi and Czech unit Skoda, rose 13 percent to a record 5.37 million vehicles. The numbers don't include deliveries at Porsche SE, the sports-car manufacturer that is merging with VW.

China, western Europe, North and South America will “continue to drive demand” as VW presents new models such as the Audi A7 coupe, the VW Passat station wagon or Bentley's new Continental GT coupe, VW said.

VW aims to reach its sales goal of 10 million vehicles by 2015, three years earlier than planned, as VW tries to pass Toyota Motor Corp. as the largest automaker, a person with direct knowledge of the matter said this week.

More than 8 million deliveries are targeted by 2012, said the person, who asked not to be identified discussing internal goals.

“The successful business growth of the Volkswagen group in the first nine months of 2010 will not continue as strongly in the fourth quarter,” VW said in its statement. “Sales revenue and operating profit in 2010 will continue to perform positively.”

9-month operating profit triples

Nine-month operating profit more than tripled to 4.8 billion euros from 1.5 billion euros a year earlier, VW said.

The carmaker is targeting a second consecutive year of record global sales as it adds about 70 models, including upgraded versions of existing vehicles, across its brands. VW sold 6.29 million cars, sport-utility vehicles and light commercial vans in 2009, a gain of 1.1 percent.

VW increased nine-month sales of all brands in China by 39 percent to 1.48 million vehicles. Audi, already the largest luxury-car maker in the country, boosted deliveries 61 percent to 174,907.

The German company will add two factories in China as part of a 6 billion-euro plan to double production there to 3 million cars within four years. VW will also open a plant in Chattanooga, Tennessee, next year to supply the U.S. market and is expanding capacity in Russia.

VW will release more detailed results on Oct. 27.

 

Electric cars won't be profitable at first, BMW CEO Reithofer says

Guido Reinking - Automotive News Europe - October 22, 2010 06:01 CET 

NUERTINGEN, Germany -- BMW CEO Norbert Reithofer isn't expecting new vehicle and powertrain concepts like the company's Megacity Vehicle and electric drive to contribute to profits at first.

“It may be that you don't earn any money with such technologies during the first product cycle,” he said during an event at the Institute for the Automotive Industry in Nuertingen, Germany. “Here, conventional drive has to cross-subsidize the new technology.”

And this is true even though BMW is planning to charge customers more for electric cars.

"Electric cars will be expensive vehicles in the beginning," Reithofer said.

Starting in 2013, BMW is planning to bring its Megacity Vehicle to market. It is the first BMW tailored to electric drive from the outset.

The subcompact, which will be built in Leipzig, Germany, will have a passenger compartment the relies heavily on carbon fiber composite. This material is very light but extremely expensive. That's the reason it has been used primarily in racecars and supercars until now.

“But we see it as the future of body construction,” Reithofer said.

In contrast, the MCV's front end, the “drive module,” is mainly of aluminum.

The combination of carbon fiber and aluminum will offset as much as 350 kilograms (772 pounds) of additional weight from battery and electronic components, Klaus Draeger, BMW's development chief, told Bloomberg earlier this year.

BMW is building its electric drivetrain as well as its battery, a high-voltage storage unit, itself. In doing so, the brand intends to differentiate itself from the competition.

Reithofer said: "We won't give that up,” even if it's more expensive to do everything on its own.

However, BMW will get battery cells for the MCV from SB LiMotive, a joint venture between Robert Bosch GmbH and Samsung SDI. SB LiMotive also is also supplying battery cells for the BMW 1-series-based Concept ActiveE EV test car.

BMW is continuing to rely on conventional drives with gasoline and diesel engines. That way, its overall profitability won't suffer too severely.

"In 2020, electric vehicles will be 5 to 15 percent of the electric vehicle market,” Reithofer said. "So we will have a long transition."

At this time, "conventional technology has to cross-subsidize new technology."

Douglas A. Bolduc contributed to this report

 

Bridgestone to Expand OTR, Steel Cord Output with £188 milion Investment

Created: October 22, 2010 03:06:00 PM

Bridgestone Corporation has announced plans to invest 24 billion yen (£188 million; 211.7 million euros, US$296 million) in expanding production capacity of its Kitakyushu Plant. According to the company, Bridgestone is making the move to address “the continuing increases in global demand for large and ultra-large off-the-road radial tyres used on construction and mining vehicles.” Bridgestone will also expand production of the steel cord used in large and ultra-large OTR tyres manufactured at its Saga Plant. Post expansion production is scheduled to begin from January 2013. Production capacity at the Kitakyushu Plant is scheduled to increase to 130 tons per day when the expansion is completed in the second half of 2013.

Due to increasing global demand for mineral resources, requirements for OTR tyres are expected to continue in the medium-to-long term. “Because of the growth we saw in the market, Bridgestone initiated a second phase expansion of production capacity at the Kitakyushu Plant in April 2010, following on from its start-up of operations at the plant in June of 2009. Bridgestone is now implementing a third phase expansion of production in order to meet the growing needs of its customers,” the company said in a statement.

In addition to meeting the global needs of Bridgestone’s customers, the Kitakyushu plant will reportedly be the environmental model for future Bridgestone factories by incorporating designs and construction methods that minimize the plant's impact on the environment. The plant will help conserve energy by using solar panels, making use of natural light in the factory thereby limiting the need for electric lighting and reducing paper consumption by using an electronic paper product developed by Bridgestone.

Key facts about the Kitakyushu Plant
Location:  2-2-2, Hibiki-cho, Wakamatsu-ku, Kitakyushu City, Fukuoka Prefecture
Products produced:  large and ultra-large off-the-road radial tires for construction and mining vehicles
Plant director:  Akio Oobayashi
Start of production:  June 2009
Number of employees:  253 (as of June 2010)
Production capacity (volume of new rubber):  Approximately 80 tons/day*
    (*scheduled capacity by second half of 2012)

Key facts about the Saga Plant
Location:  2100, Tsutsumi, Kamimine-cho, Miyaki-gun, Saga Prefecture
Products produced:  Steel cord
Plant director:  Yoshiaki Yamada
Start of production:  March 1982
Number of employees:  470 (as of June 2010)
Production capacity:  Approximately 240 tons/day (as of June 2010)

 

BRIDGESTONE SAYS CHINA DEMAND TO BOOST TIRE SALES TO $43 BILLION IN 2012

Bridgestone Corp., said it may boost sales to 3.5 trillion yen ($43.2 billion) by 2012 as demand grows in markets including China, India and Brazil., reported Bloomberg today (Oct 22). Sales will increase from 2.9 trillion yen in 2010, the company estimated, while operating profit may rise to 280 billion yen. Tire sales are expected to grow 40 percent by 2015 from 2009, while industry-wide demand may rise 15 percent, said the company. Surging vehicle demand in emerging markets is helping Bridgestone sells more tires for passenger cars and trucks. Bridgestone expects its tire sales in China to rise 140 percent from 2009 levels by 2015, with gains of 80 percent in India and 60 percent in Brazil. Bridgestone rose 1.9 percent to close at 1,455 yen in Tokyo trading before the announcement, trimming its decline this year to 11 percent. The company is basing its five-year plan on exchange rates of 95 yen to the U.S. dollar and 120 yen to the euro. A 1-yen gain in the Japanese currency against the dollar may cut operating profit by 3.5 billion yen in 2012, while a 1-yen gain against the euro may reduce it by 1 billion yen, Chief Financial Officer Akihiro Eto told reporters today in Tokyo.

 (Bloomberg [www.bloomberg.com] - Tokyo, Japan - Oct. 22)

 

BRIDGESTONE CAPITAL INVESTMENTS TO BE COMPLETED BY 2013

As the yen traded at 81.07 against the U.S. dollar as of 4:11 p.m. in Tokyo today, A stronger yen cuts the value of Bridgestone’s overseas earnings when converted back into the Japanese currency, reported Bloomberg today (Oct 22). Chief Financial Officer Akihiro Eto said the company may consider raising prices as the cost of raw materials rise. Bridgestone will invest 24 billion yen to increase production capacity for large tires and steel cords for vehicles used by construction and mining companies, the company said separately today. The expansion, at plants in Fukuoka and Saga prefectures in southern Japan, is to be completed in the second half of 2013, Bridgestone said in a statement. The company will raise daily tire production at a plant in Kitakyushu City, Fukuoka, to 130 tons from 30 tons. Bridgestone will spend 22 billion yen on the tire plant expansion and 2 billion yen on the steel-cord factory, the company said. The tire-maker said it plans 220 billion yen to 270 billion yen in annual capital expenditures.

 (Bloomberg [www.bloomberg.com] - Tokyo, Japan - Oct. 22)

 

Indian Tyre Production Increases 29%

Created: October 22, 2010 03:33:00 PM

The period between April and August this year yielded a 29 per cent increase in domestic tyre production in India on the back of a sharp rise in automobile sales, according to a report published by Business Standard. This rise is made even more impressive when one considers the spiralling natural rubber prices in the same time-frame. The report states that the major tyre manufacturers produced 47.1 million tyres in April-August 2010, as opposed to 36.7 million in the same period of 2009.

The Automobile Tyre Manufacturers Association told Business Standard that the scooter segment had seen the sharpest rise of 65 per cent, rising to 7.4 million tyres. Three- and four-wheel passenger car tyre production rose 44 per cent and 43 per cent respectively, with 10 million PC products made against 7.17 million in the same 2009 period. Motorcycle tyres went up 30 per cent to 17 million, from 13 million. In the final segment mentioned, truck and bus tyre production increased only marginally, reaching 6.24 million from 6.1 million.

According to the Society of Indian Automobile Manufacturers, commercial vehicle sales rose 41.59 per cent in the slightly longer April-September period of 2010, with car sales up 33.58 per cent and two-wheelers up 25.86 per cent.

 

AutoBild wheel: In the 4x4 winter tire test wins a proven product
18.10.2010

The automotive magazine Auto Bild has a four-wheel winter tire test of size 215/65 R16 extended T / H on a Volvo XC. Winner is the best Dunlop SP Winter Sport 3D, also as "exemplary" prove the Cross Contact Winter Continental and Pirelli Winter 210 Sottozero. Behind the "recommended" Michelin Latitude Alpin, Toyo Open Country W / T and Nokian WR G2 must Bridgestone Blizzak LM 25 4x4 "conditionally recommended" content.

Kumho I'zen RV KC 15, the red lantern with home and is "not recommended". As always, you can find the detailed test results when you click on our website the extensive data collection of the tests. dv

Tyre sales data shows recovery continues

18 October 2010 - ERJ staff report (DS)

Milan, Italy -- Pirelli has updated its website with tyre sales for the month of September.

The company reports truck tyre sales still growing strongly around the world, while the car tyre sales boom appears to be easing in some regions. The company reports only percentage changes, not absolute numbers.

Pirelli said OE truck tyre sales in Europe grew by 46 percent in the year to date, and by 83 percent in September. European replacement sales increased by 22 percent in the first nine months, while the September figure was up by 14 percent compared with a year ago.

OE truck tyre sales in the NAFTA region increased by 31 percent in the year to date and 19 percent in the most recent month. On the replacement side the increase is 17 percent in the first nine months and 10 percent in September. The Mercosur region saw the OE sales up by 58 percent in the year so far and by 38 percent in September. Replacement sales were up by 23 percent in the first nine months and 21 percent in September.

Truck tyre sales data for Japan and China are not yet available

In the car and light truck segment, European OE sales were up by 15 percent in the year so far, but down by 3 percent in the month of September. Replacement sales were up by 9 percent in the year to date and by 6 percent in September.

North American (NAFTA) sales of cars and light trucks continued to grow, but at a slower rate, leading to OE tyre sales up by 54 percent in the year to date and by 12 percent in September. On the replacement side, the picture was weaker with sales in the first nine months up by 5 percent, and by just 0.2 percent in September.

In the Mercosur region, OE sales were up by 15 percent in the first nine months and up by 11 percent in the month of September. Replacement sales were also strong, up by 16 percent in the year so far and by 3 percent in the month of September.

 

EU PASSENGER CAR REGISTRATIONS DOWN 4.3% OVER THREE QUARTERS

Over the first three quarters of 2010, EU registrations of new cars were 4.3 percent lower, compared to the same 2009 period, totaling 10,251,140 vehicles, according to the European Automobile Manufacturers' Association (ACEA). September registrations decreased 9.6 percent, compared to the same month last year, marking the sixth consecutive month of decline in demand for new cars this year. In September, all major markets contracted, from -8.2 percent in France to -8.9 percent in the U.K., -17.8 percent in Germany, -18.9 percent in Italy and -27.3 percent in Spain. In contrast, markets such as Ireland (+93.9) or Latvia (+79.6) expanded considerably, posting growth from very low levels in 2009 and 2008. From January to September, results in the major markets were more diverse. France remained stable (+0.8%), the U.K. (+7.8%) and Spain (+16.2%) were higher than the previous year. Italy (-4.4%) and Germany (-27.5%), however, saw numbers decline.

 (European Automobile Manufacturers' Association [www.acea.be] - Brussels, Belgium - Oct. 18)

 

BMW to make hybrid parts with PSA
Automotive News Europe | October 19, 2010 06:01 CET

FRANKFURT (Reuters) -- BMW AG and PSA/Peugeot-Citroen SA will extend their engine partnership to include jointly developing, purchasing and producing hybrid powertrain components for front-wheel-drive vehicles.

BMW said it expects significant cost savings from the deal, which will allow both companies to standardize key components needed to make electric motors used in hybrid vehicles.

"This cooperation will deliver a major contribution toward a competitive cost structure in the field of electrification. It also represents another important step on the road to sustainable mobility," CEO Norbert Reithofer said in a joint statement with PSA CEO Philippe Varin on Monday.

Both parties have agreed not to disclose financial details of the agreement nor did the two specifically say whether the components could extend all the way down to so-called micro-hybrid components such as automatic engine idling sold under the term "start-stop" technology.

Earlier this month, Reithofer said he expected volumes on the front-wheel-drive architecture, which would be used for a BMW brand model for the very first time, could reach volumes of 700,000 units and up to as much as 1 million.

"Combining both partners' expertise in hybrid technologies will clearly create a competitive advantage," PSA said.

In February, the two companies agreed to develop the next generation of their jointly designed four-cylinder gasoline engine, which will also meet EU-6 emission requirements.

The joint engine is currently built into a number of Mini, Peugeot and Citroen brand models. 

 

Porsche plans a hybrid in every model line

Sports car maker also considers downsized engines

Thomas Geiger - Automotive News Europe | October 18, 2010 12:44 CET

STUTTGART -- Porsche is counting on hybrid drive to help reduce its fleet CO2 emissions.
“In the future, we will have hybrid drive in every model line," development chief Wolfgang Duerheimer said.

Earlier this year, Porsche launched a hybrid version of its Cayenne SUV. A Panamera sedan will go on sale with the Cayenne's hybrid technology in 2011. According to Porsche engine chief, Heinz-Jakob Neusser, the Panamera hybrid will be able to travel 5km to 6km (about 3 to 4 miles) under electric power.

Porsche's first electrically powered sports car, the 918 Spyder, will come next, with small production runs planned in three to four years.

“We want to learn how we can electrify all our sports cars in the future with the help of this short production run," Duerheimer said.

He held out the prospect of hybrid versions of the 911, the Boxster and Cayman, but did not give a time frame.

The European Union has set Porsche a target of reducing its CO2 emissions to 216 grams per kilometer by 2015 from 255g/km now. Porsche believes hybrids will help the company meet the goal.

4-cylinder engines
The company could also introduce smaller engines to help cut CO2 emissions.

"If the CO2 guidelines require it, then our engines will become smaller and may have just four cylinders," Duerheimer said. “The important thing is that the performance has to be right. The 911 must always be on the cutting edge.”

He is looking at turbocharging and direct injection. They could be used to transform a four-cylinder powerplant into a sports car engine.

Weight is another parameter and Porsche aims to ensure that new models are no heavier than the vehicles they replace.

"A constant weight is our minimum requirement in the change to a new generation, even with compliance with all the new safety and comfort requirements," Duerheimer said.

That means a new model must be 10 percent lighter each generation, so that the new car doesn't end up weighing any more than the old.

“You could hardly achieve much more than that with current technologies," Duerheimer said.

He said Porsche is developing carbon car bodies for road vehicles that can be used to make another improvement of 50 kilograms (about 110 pounds) in weight.

These could be ready in five years.

Porsche is introducing new smaller vehicles such as the planned Cajun SUV, which will positioned below the Cayenne, to win new customers, not to cut the carmaker's CO2 emissions, Duerheimer said.

"If you want to save on your heating costs," he said, "you don't move into a smaller apartment."

 


GM: about half of drivers choose to change a flat tyre on the road even when they have a spare tyre

18 October 2010  - By Bruce Davis ERJ staff

Detroit, Michigan -- For decades, US the auto and tyre industries have chased the Holy Grail known as the run-flat tyre to solve a motorist's mobility problems and do away with the spare tyre, which just adds weight and robs valuable trunk space.

Now the spare may be an endangered species, but not because tyre makers finally have come up with an acceptable run-flat.

Instead, other technological advances -- tyre pressure monitoring systems, cell phones and on-board emergency call services -- have combined with improved roadside assistance programs to sound what may be the death knell for the spare tyre.

In explaining why it doesn't offer a spare tyre on the new Chevrolet Cruze compact, General Motors pointed to those factors and a change in driver behavior. GM said only about half of drivers choose to change a flat tyre on the road even when they have a spare tyre.

GM does offer Cruze owners the option of a space-saver spare, but the standard equipment is a tyre inflation kit: a canister of sealant integrated into a plug-in compressor. GM even pitches the versatility of the compressor by including attachments so the driver can inflate mattresses, beach toys, etc.

The Cruze is the third Chevy to get that treatment, after the retro HHR and Cruze forerunner the Cobalt. The Corvette has not had a spare on board for years, but it's equipped with run-flat tyres.

Other recent-vintage models with run-flats include the Cadillac SRX, Saturn Vue Greenline hybrid, Pontiac G8/GT, Ford Mustang GT500, Chrysler Crossfire, Mazda RX8 and Honda Fit.

Interesting note: Most driving schools today don't teach students how to change a flat tyre. Some require students to familiarise themselves with the workings of a car, but few if any offer hands-on experience with a tyre jack and lug wrench.

 

NHTSA REISSUES 15-PASSENGER VAN SAFETY CAUTION

The National Highway Traffic Safety Administration (NHTSA) is urging users of 15-passenger vans to take specific steps to keep occupants safe. The agency warns that tire maintenance is "paramount to preventing tragedies from occurring, such as rollover crashes." Users of 15-passenger vans need to make sure the vehicles have appropriatelysized tires that are properly inflated before every trip. The agency also points out that tires degrade over time. For this reason NHTSA recommends that spare tires not be used as replacements for worn tires. In fact, many tire manufacturers recommend that tires older than 10 years not be used at all. NHTSA said that it is directing this advisory to church groups, other non-profit organizations and colleges that may be keeping older 15-passenger vans in service longer than usual because of tight budgets. Pre-primary, primary and secondary schools should not use 15-passenger vans for transporting school children, as they do not provide the same level of safety as school buses.

 (National Highway Traffic Safety Administration [www.nhtsa.gov] - Washington, D.C. - Oct. 18)

 

COLUMBIAN CHEMICALS TO HIKE CARBON BLACK PRICES 10-15% ON NOV. 15

Columbian Chemicals Co. (CCC) of Marietta, Ga., will increase prices for all products sold in North America to rubber carbon black markets by 10-15 percent, effective Nov. 15. Orders shipped on or after Nov. 15 are subject to this increase. Pricing adjustments for customers with supply contracts will be implemented as agreements allow, the company said in a letter today (Oct. 18) to its clients. "Years of cumulative cost increases without commensurate pricing adjustments and the prospect of investment by carbon black producers to support customer demand make this increase necessary," CCC said. "Columbian continues to streamline its operations and increase efficiency wherever possible. However, it is necessary to pass along a portion of these costs," it noted.

 (Columbian Chemicals Co. - Marietta, Ga. - Oct. 18)

 

BMW recalls 21,771 sedans in China

Automotive News China - Automotive News Europe | October 19, 2010 06:01 CET

BMW AG has recalled 21,383 5-, 6- and 7-series luxury cars to repair faulty brakes, reports China's Xinhua news service.

The German automaker is recalling vehicles produced from December 14, 2001, through November 23, 2009, according to Xinhua, which cited a Web posting by China's General Administration of Quality Supervision, Inspection and Quarantine.

The company also is recalling 388 Rolls-Royce Phantom sedans produced between January 1, 2003, and November 30, 2009.

The problem was caused by defective brake boosters contaminated by lubrication inside the vacuum pump. The flaw can cause the brake boosters to malfunction, according to China's watchdog agency. 

 

Bridgestone plans to expand OE business with French car manufacturers
15.10.2010

According to Bridgestone, the original equipment is an important component of its growth strategy of the Group in Europe, where you own words, claimed not only a "solid position as number two" in the truck tire market, but also in terms of passenger car OEM market share of about ten percent even in the 90s to almost 20 percent had to double. As a special success, the company upgraded to keep up their Citroën since 2009, and rank among all three major French car brands as well as all major automobile manufacturers in Europe to the customer portfolio. "Bridgestone is proud to serve all three major French car manufacturers and is working hard to expand this business," said Didier Schneider, vice president of original equipment Bridgestone Europe. "We are confident that the new environmentally friendly, Ecopia' technology from Bridgestone at the French industry will leave a strong impression," he says. Cm

(Apologies for the bad quality of the translation that has been made by a translation program from the web)

 

UK tyre safety campaign gets HIghways Agency backing

15 October 2010 - ERJ staff report (DS)

London -- The UK Highways Agency has for the first time backed tyre safety month in the UK. Organised by TyreSafe, the UK’s leading tyre safety organisation, the campaign will educate drivers about the importance and simplicity of checking tyre tread depth. With the Highways Agency’s endorsement, campaign materials will be distributed across the UK through local road safety partnerships which includes county councils, emergency services and other relevant organisations, reaching a wider audience than ever before.

Ginny Clarke, director of network services for the Highways Agency, said: “The Highways Agency is pleased to be backing TyreSafe as they launch this year’s tyre safety month. The simple 20p test is an essential part of preparing for your journey. By checking that tyres are still in good condition, drivers are helping to avoid accidents, and the risk of delays to their journey as a result.”

 

European car production decline continues

15 October 2010 - ERJ staff report (DS)

Brussels -- EU September registrations of new cars decreased by 9.6 percent compared to the same month of last year, marking the sixth consecutive month of decline in demand for new cars this year. In absolute numbers, registrations amounted to 1,227,645 units. Over the three first quarters of 2010, registrations were 4.3 percent lower compared to the same period of 2009, totaling 10,251,140 vehicles.

In September, all major markets contracted, from -8.2 percent in France to -8.9 percent in the UK, -17.8 percent in Germany, -18.9 percent in Italy and -27.3 percent in Spain. In contrast, markets such as Ireland (+93.9 percent) or Latvia (+79.6 percent) expanded considerably, posting growth from very low levels in 2009 and 2008.

From January to September, results in the major markets were more diverse. While the French market remained stable (+0.8 percent) compared to the three first quarters of 2009, registrations in the UK (+7.8 percent) and Spain (+16.2 percent) were higher than in the previous year. Italy (-4.4 percent) and Germany (-27.5 percent), however, saw numbers decline. The steepest fall was recorded in Bulgaria (-37.8 percent) and the most important increase in Ireland (+52.3 percent).

WTO releases preliminary report supporting tyre tariffs, BNA says

15 October 2010 - Miles Moore, ERJ staff (TB)

Washington DC -- Supporters of the tariffs the Obama administration levied against passenger and light truck tyre imports from China say they are encouraged by a news report that a World Trade Organisation (WTO) dispute panel has issued a confidential preliminary report supporting the tariffs.

The Bureau of National Affairs´ (BNA) Daily Executive Report ran a story Oct. 12 saying that anonymous sources confirmed the existence of the Sept. 24 preliminary report and its contents.

The United Steelworkers (USW) union appealed for trade relief against Chinese tyre makers and exporters in April 2009, under Section 421 of the Trade Act. The International Trade Commission (ITC) and the Office of the US Trade Representative (USTR) found evidence of harm to the domestic tyre industry because of Chinese imports. In September 2009 President Obama ordered tariffs equal to 39 percent the first year, 34 percent the second and 29 percent the third, before reverting to the previous 4 percent in 2012.

A spokesman for the United Steelworkers union said the USW hadn’t heard of the WTO report before the BNA story. “We have not seen it, nor should we,” he said, because WTO confidential reports are strictly for member governments.

“We’ve always said China has every right to appeal,” the USW spokesman said. “We’re an organisation well suited to the negotiation of deals and the rules of trade. But all the participants have to live by those rules.

“If you negotiate deals, they’re meaningless unless you enforce them,” he said. “Ten years ago China pledged it would play by the rules, and it hasn’t.”

Spokesmen for the Tire Industry Association (TIA) and the Rubber Manufacturers Association (RMA) also said they had not seen the WTO preliminary ruling. TIA opposed the tariffs, insisting they would create tyre shortages and hardships for tyre retailers without helping domestic tyre manufacturers.

The RMA expressed no public opinion on the tariffs, although two of its members—Cooper Tire & Rubber Co. and Toyo Tires USA. Inc.—opposed them.

“We knew China was appealing the process, so we’re not surprised,” said Paul Fiore, TIA director of government and business affairs. “The news is a little sooner than we expected.”

The WTO panel is expected to issue its final ruling Nov. 8, after which the decision will be made public. Officials of USTR and the ITC declined comment on the preliminary report, citing its confidentiality. The WTO press office in Geneva, Switzerland, did not respond to inquiries from Tire Business.

 


POTENZA MAKES A SHOW AT THE KOREAN GRAND PRIX

Bridgestone announced today (Oct. 15) they will head to a new Formula 1 destination as it takes its hard and soft compound Potenza tyres to the first ever Korean Grand Prix at Yeongam near the city of Mokpo on October 22-24. The all-new Korean International Circuit will give teams and drivers a real challenge as it has never previously held a motorsport event. This means that the teams and Bridgestone will have to rely on simulation data before taking to the track for the first time on the Friday of the Grand Prix. Hiroshi Yasukawa

 

Proposal Toughens Testing Standards For Truck Tires

Oct 8, 2010 12:32 PM, By Brian Straight, Fleet Owner managing editor

The National Highway Traffic Safety Administration (NHTSA) has proposed new truck tire testing procedures for nearly 98% of all commercial tires sold in the U.S, but fleets may see only minimal impact on the cost of their tires should the rule go into effect.

Under the Notice of Proposed Rulemaking (NPRM), which was published in the Federal Register last week, new endurance and speed-testing of commercial tires would modernize the current testing system, which has been in place since 1973, NHTSA said. The proposal, an update to the TREAD Act, would also require sidewalls to include the tire’s maximum speed rating.

“Michelin is very pleased to finally see the Notice of Proposed Rulemaking for the TREAD Act mandated update of FMVSS119, the Federal Motor Vehicle Safety Standard for commercial truck and bus tires,” Mike Wischhusen, director, industry standards & government regulations for Michelin North America told Fleet Owner. “We, along with the rest of the industry, have been working with the Rubber Manufacturers Assn. over the last several years to share tire performance data and tire testing expertise with NHTSA.”

The entire proposed rule is available here.

The NPRM is in response to the massive recall of Firestone consumer tires back in 2000. That recall was prompted by a federal investigation of complaints that rubber peeled off the tire casings. More than 6.5 million tires were eventually recalled.

While commercial tires were never part of the recall or investigation, Congress mandated that NHTSA update its testing protocols for all tires sold in the U.S. This rule addresses the commercial aspects of that Congressional mandate.

The proposed rule would toughen the endurance test and add a new high-speed test for new radial tires in load range F, G, H, J and L, which the agency believes make up 98% of the commercial market. These rules would apply for non-speed restrictive tires. NHTSA is also considering placing non-speed restricted, load-range M radial tires under the same criteria.

The NPRM is open for public comment until Nov. 29, 2010. But the proposal is unlikely to have much impact on the fleets who purchase tires, but tire manufacturers will have to adjust, said Guy Walenga, director of engineering-commercial products & technology for Bridgestone Bandag Tire Solutions (BBTS).

“That endurance test is tougher,” Walenga told Fleet Owner. “It’s done at higher loads, and even though it will be at the same 47-hour [test time], it will be at a much higher speed.”

NHTSA is proposing to raise the current endurance test speed to 50 mpg for all load ranges. Currently, there are varying test speeds based on the load range of the tire. Also, test inflation pressure would be set at 80% of the sidewall-labeled inflation pressure that corresponds to the tire’s maximum load rating. This is a 20% decrease from the current test which requires tires to be fully inflated.

The biggest change will be the addition of the high-speed testing. Currently, FMVSS119 does not require this type of test.

The speed testing would begin after a two-hour “break-in” period for the tire at 50 mph with 85% of maximum load rating and inflation pressure set at 90% of maximum. Manufacturers would have to test the tires for 90 min. broken into three 30-min. “speed steps.”

The first step would test the tire at 12 mph less than maximum speed; the second at 6 mpg less than maximum speed; and the final test would occur at maximum speed. Test loads would be set at 85% of maximum load rating for the tire with inflation pressure set at 90%.

“It’s probably tougher than real-world” driving conditions, Walenga said. “For the majority of products [in our industry], we’ll be fine.”

Walenga said it was his understanding that NHTSA used off-the-shelf tires to test the proposed standard and only one of the tires tested did not pass. Walenga could not say whether all tires currently sold would pass as there are any number of specialty sizes on the market that probably have not been tested yet, he said.

Walenga added that Bridgestone, and other tire manufacturers, will be ready when and if the proposal goes into effect. “We don’t consider it minor, even though it appears most of our tires will meet the requirement,” he said.

Whether the new testing raises the end cost of tires is still too far off to consider at this time. When the new standards finally are approved, they may be different than what has just been proposed, Walenga said, and could still be several years away depending on how NHTSA chooses to implement the changes.

“We are currently working with RMA to develop comments on the NPRM that will be submitted to the NHTSA docket before the closure of the comment period on Nov. 29,” Michelin’s Wischhusen said. “Working together with the [NHTSA] we are confident that we can achieve an effective and efficient new safety standard that will improve the already very high safety levels on our highways without imposing undue and unnecessary hardships on the industry.”

A Goodyear spokesperson also sounded confident about their products meeting the standards, if adopted.

“Goodyear supports actions that make the roads safer for all drivers,” a Goodyear spokesman told Fleet Owner. “Though the proposed upgrades to commercial truck-tire standards are not final, we are confident that our products will continue to deliver a high level of performance in real-world conditions and comply with whatever rules may be adopted.”

In the end, fleets will have tires that they can trust, BBTS’s Walenga said.

“This should help because it really raises the bar you have to meet to earn the DOT standard,” he said.

Schrader: TPMS to be as ‘common as seatbelts

08 October 2010 - By Miles Moore, ERJ staff (R&PN)

Cleveland, Ohio -- Tyre pressure monitoring systems are here to stay, all over the world, and tyre dealers and servicers had better be prepared for that.

This was the message of Carl Wacker, vice president of global sales and marketing for Schrader Electronics Ltd., at the International Tire Exhibition & Conference in Cleveland Sept. 21.

“TPMS will be as common as seatbelts,” Wacker told his ITEC audience. Schrader alone had shipped 130 million TPMS sensors as of the end of August 2010, and that will only grow as other parts of the world follow the US and mandate TPMS.

The European Union mandated TPMS last year for full phase-in by November 2014, Wacker said. South Korea, Japan and China are quickly following suit.

That means, he said, that on a worldwide basis 257.5 million TPMS sensors will enter the market every year on new vehicles alone.

Also, by 2015 just about every used vehicle will have TPMS, making another 400 million to 450 million sensors for servicers to deal with, he said.

This, of course, will mean new challenges for tyre shops that have to service TPMS along with tyres, according to Wacker. But those tyre dealers who take care to learn the ins and outs of the technology, and take care to educate their customers, will handle the issue successfully, he said.

Wacker outlined several important factors for tyre dealers to remember in servicing TPMS, both as part of his speech and in response to questions from the audience.

For instance, auto makers will warranty TPMS the same as they will any other safety feature on a car, he said. But tyre servicers need to remember that some common items—such as balancing beads and powders and tyre seal-ants—can damage sensors.

Unexpected things can affect the operation of TPMS, such as metalised and hybrid window film, said Wacker.

“I got a call from the Red Army in China that their TPMS sensors weren’t working,” he said. “I had to go to China to solve the problem. It turned out they had put metalised film on all their military vehicle windows. Roll the windows down, and the problem went away. That is not the way to find out you have a problem.”

On the other hand, nitrogen inflation has no effect on TPMS. “Air is 78-percent nitrogen,” he said.

Schrader has been the major innovator in TPMS technology, and was the first company to develop sensors for snap-in valves, Wacker said. Within a few years, he said, there will be sensors in the tyres themselves.

“Once we’re in the tyre, we can do all sorts of neat stuff,” he said. “We will be able to measure load and tyre temperature.”

 


BEKAERT INAUGURATES 'GREENEST' STEEL CORD PLANT

Seizing the opportunity of the expansion of its steel cord plant in Shenyang (Liaoning Province, China), Bekaert took up the challenge to build its "greenest" steel cord plant ever. The inauguration took place today (Oct. 8). This expansion project adds another 25,000 tons of tire cord capacity, bringing the total annual tire cord capacity of Bekaert in China to 450,000 tons by year-end. To build the "greenest" steel cord plant, Bekaert said it pulled together the newest technologies for optimized energy conservation, reduced environmental impact and enhanced workplace comfort. Major improvements were realized for each of these categories. Bekaert designed and manufactured new equipment for optimized energy-efficiency. Immediate measurable returns include 18-percent reduction of CO2 emissions, waste volume decrease by a factor of 8, a 35-percent cut in material handling loads, and a decrease in machine noise exposure by 8 dB(A) on average.

 (Bekaert [www.bekaert.com] - Liaoning, China - Oct. 8)

 

INDIAN TIRE MAKERS FACING SR SHORTAGE

An inadequate supply of synthetic rubber, due to less than required production capacity, will be a major concern for India's tire manufacturing industry in the coming days, RubberWorld.com reported, citing the Financial Express. The supply of natural rubber in the country is projected to be lower than the demand, and inappropriate planning on production of synthetic rubber will make the situation tight, said Stephen V. Evans, secretary general, International Rubber Study Group (IRSG). Globally, a shortfall is being reported in the production of butadiene, he said. India imports more than 80 percent of its requirements of synthetic rubber. The boom in the automobile sector across the globe, especially in countries like China and India, has accelerated the demand for tires. According to Rubber Board statistics, in India the share of natural rubber in automobile tires is 73 percent, as against 27 percent of synthetic. Globally, the share of synthetic in tires is seen more at 56 percent, as against 44 percent of natural.

 (RubberWorld.com [Financial Express] - Kochi, India - Oct. 8)

 

INDIAN TIRE MAKERS TO IMPORT 30,000 TONS RUBBER OCT-DEC

Indian tyre makers will import over 30,000 tons of natural rubber in Oct-Dec, and are also looking for similar quantities for Jan-March delivery, as rising demand outweighs higher international prices, industry players said, Reuters.com reported.

That would put total imports for this fiscal year close to the 170,679 tons of 2009/10, when

India's needs nearly doubled, as domestic production was hit by a severe drought. "Tyre makers have already signed deals for 30,000 tons of rubber imports because of the difference between domestic and international prices," said a dealer based in Kochi. "In Thailand, rubber was cheaper when they contracted." In August, Indian rubber makers were charging a premium of as much as 35 rupees ($0.79) per kilogram (kg) over the Bangkok market, prompting Indian tyre companies to buy rubber from overseas markets. "Despite duty, overseas rubber was cheaper," the dealer said. "Now the gap between domestic and international markets has come down, but tyre makers are likely to import to cater to their rising demand."

 (Reuters.com - Kochi, India - Oct. 7)

 

Fiat, Renault ventures in Turkey plan record production
Automotive News Europe | October 11, 2010 09:50 CET

ISTANBUL (BLOOMBERG) -- Tofas Turk Otomobil Fabrikasi AS, the Turkish unit of Fiat S.p.A., and Oyak-Renault, Renault SA's local unit, plan record outputs this year, a Turkish newspaper said.

Tofas plans to make 320,000 units and Oyak-Renault plans to produce 308,000 vehicles this year, Hurriyet said, citing Tofas CEO Ali Pandir and Oyak-Renault CEO Tarik Tunalioglu.

Oyak-Renault plans to boost sales to more than $4 billion this year from $3.7 billion last year, Tunalioglu said according to the newspaper.

 

Daimler recalls 85,000 vehicles in U.S., citing steering flaws
Automotive News Europe | October 11, 2010 08:30 CET

NEW YORK (Bloomberg) -- Daimler AG is recalling more than 85,000 Mercedes-Benz models in the United States over a steering flaw that may make the cars difficult to control.

The voluntary recall affects 2010 C-Class Model 204 and E- Class Model 212, and 2010-11 E-Class Coupe/Cabriolet Model 207, Daimler said in a report sent to the National Highway Traffic Safety Administration.

“The power steering system in the subject vehicles may fail due to the loss of power steering fluid,” Daimler said in the report, dated Oct. 4. “Owners may not have sufficient control of the vehicle in areas, such as parking, where maximum power steering is required, and could lead to a vehicle crash.”

Daimler spokesmen Joerg Howe, Marc Binder and Florian Martens didn't respond to telephone calls seeking comment.
The New York Times reported on the recall earlier.

Sept. car sales down 10.4% in w. Europe; no recovery seen

Paul McVeigh - Automotive News Europe | October 7, 2010 13:34 CET

New-car sales in western Europe fell 10.4 percent in September, according to J.D. Power Automotive Forecasting.

The UK-based market researchers now expect a 6.4 percent decline to 12.8 million in the region's car sales this year, followed by a 1.8 percent drop to 12.57 million next year as government austerity measures dampen large consumer purchases.

"The market continues to compare poorly year-on-year to a 2009 market that was inflated by government scrappage incentives," J.D. Power said in a statement.

The company said an annualized selling rate of 12.4 million is weak by historical standards -- western Europe's car sales reached a high of 14.8 million in 2007 -- "but at least it is an improvement on the past few months."

In Germany, sales fell by nearly 18 percent last month with the year-to-date market down by 27.5 percent. "The selling rate in Germany remains below 3 million units a year, highlighting that the German consumer remains cautious even though the economy has been performing well recently," J.D. Power said.

The French market saw an 8 percent drop for September. France is the only major market in the region with a scrappage scheme in place, although it is being phased out.

Car sales in Spain declined by 27 percent, hit by the ending of scrappage support and a VAT rise.

The Italian market was down 19 percent while UK car sales fell 9 percent in an important month when sales are normally inflated by the introduction of new registration plates.

Sales will continue to decline in the remaining months of 2010, J.D. Power said, adding "we do not expect that 2011 will beat the 2010 market."

Uncertainty continues over the impact of the austerity measures now being adopted by European governments and because of continuing sovereign debt worries. "The risk of a double-dip recession certainly cannot be overlooked," the forecaster said.

 

Audi vehicle sales rise 16% in September
Automotive News Europe | October 7, 2010 11:16 CET

FRANKFURT (Reuters) -- Volkswagen AG premium brand Audi increased new-car sales 16 percent in September because of continued strong demand in China, where volumes rose by almost half last month.

Audi said on Thursday that it is also getting a boost from its all-new A1 subcompact, which is built in its Brussels plant.

"The A1 is proving a huge hit: Over two-thirds of the units that we will have available to ship this year have already been pre-ordered," Audi sales chief Peter Schwarzenbauer said in a statement.

"This new volume model will give us extra momentum in Europe in the fourth quarter," he said. "For 2011, we have already increased the production capacity of the A1 by 20 percent."

 

Ford, Fiat among carmakers opposing free trade deal with Korea

Paul McVeigh - Automotive News Europe | October 8, 2010 06:01 CET

Europe's automakers are pinning their hopes on the European Parliament to protect the industry from cheap Korean imports after the EU and and South Korea signed a free trade pact.

Fiat S.p.A. and Ford Motor Co. are among automakers that fear the agreement could flood Europe with cheap Korean-built cars.

Fiat CEO Sergio Marchionne said the agreement is not a "fair and equitable way of trading." The pact will hurt the European industry's competitiveness, Marchionne told a meeting of ANFIA, the Italian automakers association.

The pact is "very one-sided in favor of Korea," Ford Chief Financial Officer Lewis Booth said at the Paris auto show last week. Ford makes most of the cars it sells in Europe in its European factories. Ford of Europe made a second-quarter pre-tax operating profit of $322 million.

Good for Chevrolet
Korea's Hyundai and Kia carmakers and General Motors Co.'s Chevrolet stand to benefit from the pact.

"We are optimistic this will help us. It makes building cars in Korea for Europe more affordable," Chevrolet Europe chief Wayne Brannon said at the Paris show.

Chevrolet exports cars such as the Aveo and Spark from Korea to Europe. The brand aims to double European sales to 500,000 in the next six years.

ACEA, the European automakers association, says it is not against a deal with South Korea, but the current agreement offers South Korea an unfair competitive advantage and it will set a harmful precedent for existing and future pacts between the EU and other major trading partners.

U.S. example
ACEA cites the example of the United States where a U.S.-Korea free trade agreement from 2007 is on hold while President Barack Obama's administration seeks to tackle an alleged imbalance in car trade.

The association says any deal should include the scrapping of South Korea's non-tariff trade barriers that ACEA says severely limit the opportunities for European automakers to sell cars in Korea.

These include new rules on vehicle emissions and unique regulations outside of international test cycles and standards that require European automakers to carry out costly modifications before their cars can be sold in South Korea.

Europe a key target

Cars are South Korea's most important export product with 2 million of the country's annual 3 million production exported, according to ACEA, while 74 percent of cars produced in the EU are also registered in the region.

"The EU is a key target market for Korean manufacturers," ACEA says.

Last year, the EU exported 33,000 cars to South Korea. South Korean-built cars control more than 95 percent of the Korean market. "South Korea has the lowest level of import penetration of any developed country," according to ACEA.

The pact was signed on Wednesday at an EU-South Korea summit and is due to come into force on July 1, 2011. The deal will scrap a 10 percent import duty on Korean-built cars exported to Europe but it still needs the approval of the European Parliament.

European carmakers will be looking for the parliament to add effective measures to protect the industry from cheap Korean imports. The parliament has already informally backed a provision that will allow Europe to tax or limit South Korean car imports if there is a sudden import surge.

Korea jobs boost
The EU-Korea accord will eliminate Korean import duties worth 1.6 billion euros annually and European levies of 1.1 billion euros, according to the EU. The pact could increase Korea's gross domestic product by as much as 5.6 percentage points over 10 years and create as many as 253,000 jobs in Asia's fourth-largest economy, according to a joint report by the country's state research institutes.

European companies that may benefit include pharmaceutical producers such as GlaxoSmithKline Plc, chemical makers including BASF and consumer electronics manufacturers like Royal Philips Electronics, as well as farm exporters. Shipping and the financial and legal services industries also stand to gain.

Luca Ciferri and Bloomberg contributed to this report

 

Natural Rubber Costs Pump Up U.S. Tire Prices

North American tire prices are rising by as much as 6.5% this quarter, the second increase in six months, due to supply pressures in its primary production input—natural rubber.  

7 Oct 10

The Association of Natural Rubber Producing Countries (ANRPC) says the world natural rubber market will continue in “a demand-driven bullish phase" next year. Automakers in China, Japan, India, and North America continue to expand production and boost demand for light vehicle and heavy-duty truck tires. Global natural rubber production will continue to lag behind soaring demand for some months to come, according to producers and exporters in Thailand and Indonesia, the world's top producing countries. And that could boost the natural rubber price on the Singapore Commodity Exchange to $1.82/pound next year from an average $1.55/pound this year. By comparison, natural rubber was 87 cents/pound in 2010.

Extreme weather and aging trees in the key rubber-growing countries of southeastern Asia will reduce natural rubber production to 10.25 million metric tons this year, according to the Singapore-based International Rubber Study Group. Meanwhile, natural rubber consumption will be 10.31 million metric tons.

Looking ahead, projected demand of 11.26 million metric tons in 2011 will outpace anticipated production of 11.0 million metric tons. The bullish natural rubber demand and price outlook is supported by the fact that inventories of the material, used to make gloves, hose, gaskets, and condoms as well as motor vehicle tires, are projected to fall to 67 days of demand in 2011, according to an analysis by Goldman Sachs Group. That’s because of a projected 16.4% rise in world automotive production this year, according to IHS Global Insight, and an 8.5% expansion in 2011.

Since natural rubber constitutes as much as 40% of the cost of tire production, tire makers have had to boost prices to offset the higher cost of their key raw material. Goodyear Tire & Rubber was the first large manufacturer to institute a second round of price increases, raising consumer tire prices by 6% on October 1. Other tires makers have quickly followed. Hankook Tire America is raising U.S. prices by 6.5% on its full line of passenger, light truck, and medium-duty truck tires on November 1. “While we remain focused on controlling our manufacturing and distribution expenses, the costs of energy, raw materials, and transportation has continued to rise making it necessary for us to make this price adjustment,” Todd Hershberger, Hankook’s senior vice president, said in a statement. Cooper Tire & Rubber will boost consumer tire prices in North America by 6.5%, also effective November 1. Pirelli Tire North America will raise U.S. consumer tire prices by 7% on December 1. Other tire makers also are expected to raise prices again this quarter. In June, Toyo Tire U.S.A., Goodyear Tire & Rubber, Nexen Tire America, Kumho Tire U.S.A., Yokohama Tire, Hankook Tire America, Michelin North America, Cooper Tire & Rubber, Falken Tire, Bridgestone Americas Tire, and Continental Tire all raised regional consumer and commercial tire prices by an average 7%.

 

BRIDGESTONE'S HISPANIA BURGOS PLANT WINS EUROPEAN MOBILITY WEEK AWARD

Bridgestone Europe announced today (Oct. 6) that its Hispania Burgos plant in Burgos, Spain, is the winner of Spain's European Mobility Week Award for "Best Practices." The award recognizes Bridgestone's policies in the area of sustainable mobility and its commitment to raising awareness for the impact of how it moves on both the environment and quality of life generally. Held between Sept. 12 and 22, European Mobility Week 2010 was aimed at getting Europeans to "move intelligently" for a better quality of life. Bridgestone's plant was chosen out of 67 competing organizations and companies in Spain for its sustainable mobility policies.

 The Smiters report 

 

TYRESAFE LAUNCHES iPHONE APP FOR RECOMMENDED TYRE PRESSURE SETTINGS

iPhone users in the U.K. can now be sure of inflating their car tyres to the correct pressure, following the launch of the free TyreSafe iPhone app. Users simply input their vehicle registration details and the app provides the vehicle manufacturer's recommended tyre pressure settings in both psi and bar. The app has been launched by TyreSafe, the U.K.'s leading tyre safety organization, as part of October's tyre safety month. TyreSafe says its iPhone app utilizes one of the most comprehensive vehicle pressure databases commercially available, ensuring the widest, most accurate and up to date information is provided. The app is available to download free of charge from the "travel" and "navigation" sections of the iPhone App Store, or can be found by searching for "TyreSafe." For drivers without iPhone, TyreSafe has also made the information available on its Web site - www.tyresafe.org.

 (TyreSafe [www.tyresafe.org] - London - Oct. 6)

 

PIRELLI RACE TIRE TEST PROGRAM GETS WET IN VALENCIA

Pirelli's pre-season tire test program has entered its latest phase, with the company's wet and intermediate rubber taking to the track for the first time at the Valencia circuit in eastern Spain. The test also marked the first time that Spanish driver Pedro de la Rosa drove for Pirelli, having been announced last month as test driver. The focus at Valencia is on tires for wet conditions. The track was sprayed with water during both days of the two-day test: a light covering to check the performance of the new intermediate tires and then a more dense covering to try out the full wet rubber. Pirelli said it is easier to test wet tires when it is not actually raining, as the water on the track dries more consistently, and enables accurate data to be recorded. Mr. de la Rosa covered just over 650 kilometers during the two-day test, starting on slick tires to establish a benchmark time. Pirelli said it was able to get an initial impression of tire performance in wet and drying conditions, identifying strong areas and those that need further development.

 (Pirelli Tire North America [www.us.pirelli.com] - Valencia, Spain - Oct. 6)

 

Fleet boost limits UK sales decline in Sept.
Automotive News Europe | October 6, 2010 10:16 CET

LONDON (Reuters) -- New-car registrations in the UK fell 8.9 percent in September, the third consecutive monthly fall, but sales in 2010 as a whole are still expected to be up on the year, the Society of Motor Manufacturers and Traders (SMMT) said.

The SMMT said new-car registrations totaled 335,246 last month, helped by an improvement in fleet sales. It said the rise in value added tax next January could affect demand at the end of this year.

"Despite an 8.9 percent fall in September registrations, demand for new cars has stabilized and will end 2010 slightly up on last year," SMMT CEO Paul Everitt said in a statement. 

 

Renault to sell Volvo stock worth $4.4 billion
Automotive News Europe | October 7, 2010 06:01 CET

PARIS (Bloomberg) -- Renault SA is selling a 14.9 percent stake in Volvo AB valued at 3.15 billion euros ($4.4 billion), taking advantage of a surge in the Swedish truckmaker's shares to pay down debt.

Renault is offering its 302.9 million Class B shares of the in a private placement, the French carmaker said. The shares are being sold for 92.5 kroner to 94 kronor each, according to a term sheet sent to prospective investors. That would be a discount of as little as 3.1 percent to yesterday closing price in Stockholm.

“It's difficult to see it any other way than positively for Renault,” said Mike Tyndall, a London-based automotive specialist at Nomura Securities. “We knew it would come to market at some point, but the timing is a surprise.”

Increasing orders for commercial vehicles allowed Volvo and rivals Daimler AG and Scania AB to beat earnings estimates or raise their profit outlook this year. Volvo shares have advanced 57 percent over the past 12 months, while Renault has gained 15 percent.

Renault, with net industrial debt of 4.66 billion euros as of June 30, said it will retain its holding of 138.6 million Class A shares, or 6.8 percent of Volvo's share capital and 17.5 of voting rights, and both of its board seats.

Chief Operating Officer Patrick Pelata said as recently as Sept. 15 that Renault didn't intend to sell its Volvo stake soon because the manufacturer has enough funds to reduce debt. Renault has held the Volvo stake since selling its Renault Trucks division to the Swedish company in 2001.

Volvo is the world's second-largest maker of heavy trucks. Its shares fell 0.2 percent to 97.05 kronor on the Stockholm exchange on Wednesday, valuing the truckmaker at 203.9 billion kronor ($30.4 billion). Renault dropped 0.8 percent to 36.52 euros in Paris.

Industry-wide deliveries of heavy trucks will grow by more than 50 percent to about 3 million vehicles by 2015, helped by emerging markets, Andreas Renschler, head of Daimler's truck division, predicted last month.

The placement “allows Renault to swiftly bring automotive debt back into line with our targets, while keeping our A shares and retaining our position as a core shareholder of the Volvo Group, confirming our confidence in the company and its management team,” Chief Executive Officer Carlos Ghosn said in the statement.

Under Ghosn, Renault has pledged to cut its industrial debt to 3 billion euros or less. Renault had 6.3 billion euros of cash and equivalents at the end of the June.

Renault's long-term debt is rated Ba1, the highest non- investment grade rating, with a stable outlook at Moody's Investors Service and BB, one notch lower, with a stable outlook at Standard & Poor's.

 

BRIDGESTONE EUROPE NOW SUPPLYING ALL MAJOR FRENCH CAR MANUFACTURERS

Bridgestone Europe is now supplying all three major French car brands, and all major car manufacturers in Europe. Citroen selected Bridgestone for two of its new models in 2009 - the Turanza ER300 premium touring tyre for the C3 five-door hatchback, and the 17-inch size sporty Potenza RE050A for the DS3 three-door hatch. Bridgestone recently announced it is sole supplier for Citroen's most sporty version of the DS3 range: the new DS3 Racing. The Potenza RE050A in size 215/40R18 will be standard on the 196-bhp model when it debuts in November. Peugeot selected

Bridgestone in 2003, when Turanza tyres were fitted to the 307 (195/65R15 91H ER30). Now the Turanza ER300 is on the Peugeot 308 and 207 SW door, Potenza RE050A on the 207 CC, Dueler H/P Sport on the 4007 and the Duravis R630 on the Boxer and Duravis R410 on the Expert. Bridgestone became a supplier for Renault in 2004, when the B250 was selected for the Modus. The range now includes the Potenza RE050A on the Megane and Wind, ER300 on the Clio and Fluence, B250 on the Scenic, Modus and Clio, and Dueler H/L 400 on the Kangoo.

The Smiters Report

 

Bridgestone produces 27 000 tyres daily, its maximum capacity

The first company in the city gives to overcome the most acute phase of the crisis, which entailed the application of several ERE, but warns it can still suffer from 'bumping' in 2011

"Our factories have emerged strengthened from the crisis ...». This is the main conclusion drawn yesterday the CEO of Bridgestone Hispania in Burgos, Juan Carlos Bilbao, to analyze what happened over the past two years, in which the Japanese multinational has been forced to implement layoffs successive Temporary Employment (ERE) and adjust their templates possible in its Spanish plants to overcome the drop in tire production caused by the crisis in the automotive sector.

The discussion held yesterday at the launch of the conference on Corporate Social Responsibility (CSR), has its importance as Bridgestone launched in October 2008 ERE rosary that would shake the entire local auto and steel industry over two years thereafter.
"Now we have more clear where to go in the future," said Juan José Bilbao, who revealed Gamon plant, the largest factory in town with 1,460 people currently on staff (not counting the indirect employment it generates) is producing at full capacity, ie, 27,000 passenger car tires per day and has weathered the worst experienced in recent years.

"We are working well, although the crisis has not disappeared and we still suffer still lurches and 2011 will bring a shock to another. However, "added the director general of the ground-what we have learned will help us for the future ...».

 

Kwik-Fit Sets Monthly MoT Test Record

Created: October 01, 2010 09:36:00 AM

September was a record month for MoT tests at Kwik-Fit. During this period the fast-fitter examined a total of 60,000 cars at its UK service centres during, a larger number of monthly MoT tests than at any other time in the company’s history. The company says this ability to examine so many cars for the national roadworthiness test is the result of sustained investment in the provision of servicing and MoT testing, including the installation of additional MoT testing bays.

Yet while Kwik-Fit has reached new MoT heights, statistics the company has released to mark the occasion provide no cause for celebration. It appears that, for too many of us, the absence of a valid MoT is no hindrance to continued driving – and men are the worst offenders. The fast-fit company says no less than eight per cent of males would drive a car without an MoT, double the percentage of potential female transgressors. In total, Kwik-Fit’s figures indicate that 2.6 million motorists would regularly drive their cars even with the knowledge it didn’t have an MoT. Of these, 1.6 million feel justified in making short trips and the other one million would be happy to drive any distance.

“It’s worrying to see so many motorists being blasé about their car’s MoT,” said Kwik-Fit chief executive Ian Fraser. “As 35 per cent of cars fail their MoT, there are millions of cars on the road that are likely to be unroadworthy and could pose a serious danger to the owner, their passengers and other road users.

“Not only could driving without an MoT affect your insurance cover but if you’re prosecuted for this offence premiums rise on average by 43 per cent,” Fraser added. “Motorists who think they are in danger of forgetting their MoT renewal date should consider using our free reminder service. This has been very popular with motorists and avoids taking the risk of driving an illegal and potentially unsafe car.”

Motorists in North England and the Midlands receive a gold star for adhering to the law, with only four per cent prepared to drive a car sans MoT. This figure rises to seven per cent in the South East, and six per cent for Scotland, Wales and the South West. To help drivers in all regions avoid becoming an MoT statistic, Kwik-Fit offers an e-mail reminder service. Drivers can register by sending an email with their name, vehicle registration number and MoT renewal date to remindme@kwik-fit.com.

 

German new car market to return to growth after sales decline slows in Sept.
Automotive News Europe | October 5, 2010 06:01 CET

FRANKFURT (Reuters) -- After new car registrations in Germany declined at a significantly slower rate in September than in August, the VDA industry body said the German car market should return to growth towards the end of 2010.

New car registrations fell 17.8 percent in September to 259,748 vehicles. Registrations fell 27 percent in August due to a high comparison with last year's month that was distorted by the country's scrapping scheme.
"The trend change in new orders from domestic customers has finally been reached with September, when bookings rose over 10 percent. By the end of this year, we should be able to see rising registration figures in the domestic market," VDA President Matthias Wissmann said on Monday.

Barclays Capital economist Julian Callow said demand for new cars was encouraging and may present upside risks to his estimate of 0.3 percent rise in German private consumption in the third quarter over the second quarter.

"After France, Italy and Spain released (registration data) on Friday, one noticeable fact for Germany is that it is the only country among the Big Four to have experienced an increase in car sales in Q3 (2.88 million) compared to Q2 (2.78 million)," he wrote in a note on Monday.

"This 3.4 percent quarter-on-quarter pick up in Q3 is the first positive quarterly growth reading since Q2 2009."

Despite a 5 percent increase in exports, the very weak demand in Germany caused production last month to fall 3 percent to 534,700 vehicles.

Used car sales rise
According to official statistics from Germany's motor vehicle department, registrations of used cars sold gained 19 percent in September and 5.7 percent in the first nine months of the year.

Strong demand for pre-owned cars often presage a return of pricing power in the new car market as well as stronger earnings at manufacturers' captive financial services units that rely heavily on resilient residual values for cars coming off lease.

Germany's 5 billion euro pot of tax money to subsidize new car sales was exhausted at the beginning of September 2009, ushering in months of very weak demand as many purchases expected for this year were pulled forward to take advantage of the scheme. 

 

Key European markets suffer steep sales declines in September

Wire Reports - Automotive News Europe | October 4, 2010 06:01 CET

Car sales in key European markets suffered steep sales declines in September from a year ago after the loss of government incentives kept many buyers from showrooms.

Sales in Spain fell by 26.9 percent last month, the third month of double-digit declines following an end to government subsidies. In France, sales of new passenger cars fell 8.1 percent in September, while Italy's new car sales fell 18.9 percent.

In Italy sales by Fiat, which accounts for almost 30 percent of the market, fell 26.3 percent to 44,161 vehicles, according to Transport Ministry data

No major recovery is likely before next year, Fiat SpA CEO Sergio Marchionne said on Saturday. "The figures were completely in line with expectations," Marchionne told reporters at the sidelines of a conference in Florence. "The market is looking for stability, and until the process of getting supply and demand into line is completed, we will continue to suffer."

He said lower range models were feeling the most impact and added: "We'll probably have to wait until 2011 to see a pick-up in demand."

Decline to worsen
Industry executives in the region have predicted the decline will accelerate as state incentives for vehicle sales expire. The drop may amount to 7 percent, making 2010 a “low point” for Europe's car market, PSA/Peugeot-Citroen CEO Philippe Varin said on BFM Radio in France.

 

GM to shut Belgium factory after investor search fails
Automotive News Europe | October 4, 2010 12:16 CET

(Bloomberg) -- General Motors Co.'s money-losing Opel division will shut its factory in Antwerp, Belgium, by the end of this year after failing to find a buyer.

“None of the potential investors was able to come forward with a sustainable business concept for the plant,” Opel said on Monday. “The process to search an industrial investor interested in continuing operations has come to an end.”

Luc van Grinsven, a union representative at the plant, said a Chinese automaker and an American investor had expressed interest in buying the factory.

About 1,300 people still work at the Antwerp plant, which makes the Opel Astra model, after half the workforce was eliminated earlier this year. Opel said as recently as last month that the plant would close at the end of the year unless an investor made an acceptable bid by Sept. 30.

Opel lost additional market share in Germany last month. The brand's new registrations fell 19 percent, compared to an 18 percent drop overall, according to figures released today from the country's Federal Motor Vehicle Office.

Opel's share of its home market through the first nine months of the year slipped 1.2 percentage points to 7.8 percent, as sales tumbled 37 percent compared to the market's 28 percent decline.

The closure of the plant marks the first shutdown of a European auto factory since 2006. While 18 assembly factories have been shuttered in the U.S. since 2008, European governments prevented the region's biggest automakers from firing workers and used subsidies to prop up sales.

The last European plants to close was in 2006, when GM shut its site in Azambuja, Portugal, and PSA/Peugeot-Citroen folded its Ryton plant in Coventry, England.

“During this wind down period, while the active search of an investor for continuing activities has ended, we will remain open to discuss any reasonable proposals that might be presented to us,” Opel said.

Even as it's closing the Antwerp plant, GM has promised to invest 11 billion euros ($15 billion) in its Opel and Vauxhall divisions to improve the model line-up and win back customers. Opel said last month it will build a new small car at the German plant in Eisenach from 2013.

The carmaker is also ramping up component and engine production at the Kaiserslautern factory and said it will invest 500 million euros into making engines at its site in Hungary.

 

Volvo expects to boost car sales 13% this year

Douglas A. Bolduc - Automotive News Europe | October 4, 2010 06:01 CET

PARIS -- Volvo Car Corp. expects a double-digit rise in unit sales this year.

CEO Stefan Jacoby said the Swedish carmaker will sell 380,000 cars in 2010 worldwide, up 13 percent from the 335,000 cars sold last year.

Looking ahead to 2011, Jacoby told Automotive News Europe he expects recovery for Europe, where overall new-car sales were down 3.5 percent to about 9 million units in the first eight months. The decline is due mainly to the end of government-funded scrapping incentives that provides subsides to people who traded into their old cars for newer, more fuel-efficient models.

Jacoby said sales will stabilize in the near term and “we will see a steady growth,” adding: “Due to Volvo's product offerings, we will have good opportunities for growth not only in China but also in our core markets in Europe.”

Jacoby was speaking at the Paris auto show where Volvo launched the V60 station wagon.

The automaker forecasts annual sales of 50,000 V60s, with 90 percent of those sales in Europe. The car will go on sale in November.

 

BMWs and Rolls-Royces recalled over braking issue
Automotive News Europe | October 1, 2010 12:31 CET

LONDON (Reuters) -- BMW AG is recalling BMW and Rolls-Royce brand cars powered by V-8 and V-12 engines in Britain, the United States and other markets because of a potential braking problem.

"In extreme cases, a loss of power-assisted steering may occur but mechanical braking is still available," a spokesman said on Friday.

More than 10,000 vehicles are being recalled in Britain, he said, adding he could not say how many cars were affected worldwide.

In Britain, about 10,000 BMW 5-, 6- and 7-series models were affected, and 1,200 Rolls-Royces.

 

BRIDGESTONE RETAIL OPERATIONS SUPPORTS PEDIATRIC CANCER FOUNDATION

Until Oct. 9, drivers visiting all company-owned Tires Plus and Wheel Works store locations in the U.S. will be given the opportunity to support the Pediatric Cancer Foundation (PCF) with a $1 upgrade on oil change services. Donors will also receive "sunshines," personalized notes that will be prominently displayed in the Tires Plus and Wheel Works store showrooms to recognize each donation. All proceeds benefit the PCF to help fund research that supports children battling cancer. Tires Plus and Wheel Works are multi-branded tire retailers owned and operated by Morgan Tire & Auto of Clearwater, Fla., and are a part of the Bridgestone Retail Operations based in Bloomingdale, Ill.

The Smiters report

 

U.S. TIRE DEMAND UP BUT EXTENDED SHUTDOWNS LOOM

The U.S. tire industry should experience a reasonably positive fourth quarter, although it is possible that some manufacturing plants will have extended shutdowns over the Christmas holiday period, a styrene butadiene rubber (SBR) producer said on Sunday (Oct. 3), ICIS.com reported. U.S. tire demand fell sharply in 2009, as the automobile industry slashed production, but original equipment tire sales have rebounded. Pent-up demand for replacement tires has kept retailers busy in recent months, the SBR producer said at the European Petrochemical Association (EPCA) meeting in Budapest. Still, some tire makers could feel the need to reduce inventories at year-end, and may decide to keep their plants shut for a longer period that usual around Christmas, he said. The producer noted that not all U.S. states require annual vehicle safety inspections, so motorists in those states can delay tire replacement. The Rubber Manufacturers Association (RMA) forecasts that U.S. demand for replacement tires will increase 5 percent in 2010 to reach 195 million units.

(ICIS.com - Budapest - Oct. 3)

 

NHTSA PROPOSES TOUGHER TRUCK TIRE STANDARDS

The National Highway Traffic Safety Administration (NHTSA) is proposing a rule to require more stringent endurance and high-speed tests for heavy-load-range tires for vehicles with a gross weight rating of more than 10,000 pounds, Today's Trucking reported. The rule would also require tire sidewalls be labeled with the tire's maximum speed rating. Upgrading the truck tire test standards was one of several mandates under the TREAD Act passed in 2000. In remarks to the Rubber Manufacturers Association in April, NHTSA Administrator David Strickland noted that the current tire performance testing standards have not been significantly updated since 1973. "Heavy truck tires on the market today perform far and above the requirements of FMVSS 119," he said. "We've been conducting extensive testing to determine what the new performance requirements should be." Comments to the proposed rulemaking, which is published in the Federal Register, are due Nov. 29.

 (Today's Trucking [www.todaystrucking.com - Washington, D.C. - Oct. 4)

 

U.S. GOVT MAY REQUIRE 62 MPG BY 2025

The U.S. government said on Friday (Oct. 1) that it could impose a fleetwide requirement of 62 miles per gallon for cars and light trucks by 2025, but acknowledged that such a mandate could add $3,500 to the average cost of a new vehicle, The Detroit News reported. The Obama administration said it is considering annual increases in fuel efficiency, ranging from 3 to 6 percent between 2017 and 2025, which equates to a fleetwide average of 47 mpg and 62 mpg by the period's end. The range of costs per vehicle is $770 to $3,500, depending on the stringency. If it adopts the toughest standard, the administration said, auto makers would have to focus on plug-in electric, full electric and hybrid technology and rely "less on advanced gasoline vehicles and mass reduction." Under the toughest scenario, the government estimates 14 percent of all vehicles would be full electric vehicles. The government also assumes vehicles will get lighter - 15 to 30 percent - by 2025, depending on how tough the requirements are.

 (The Detroit News [www.detnews.com] - Washington, D.C. - Oct. 1)

 

BMW, Mercedes plan smaller vehicles for U.S.

Diana T. Kurylko - Automotive News Europe | October 4, 2010 06:01 CET 

PARIS -- BMW and Mercedes-Benz will bring to the United States several vehicles based on platforms smaller than what they currently sell there.

BMW will bring a new front-wheel-drive family of cars in a class known as UKL, a German abbreviation for lower-compact-class cars.

"It will be a relatively big segment because we have several body styles," Ian Robertson, BMW AG board member for sales and marketing, told Automotive News last week at the Paris auto show.

He didn't disclose what body styles BMW is developing but confirmed that the vehicles will have a four-cylinder engine in the United States at launch. The new family of small cars is expected to be introduced in the next few years, before the launch of BMW's Megacity electric car due in 2013, Robertson said.

European media reports say BMW is planning at least three variants.

Mercedes-Benz will ship three compact fwd vehicles to the United States starting in 2012, including one with an alternative drivetrain.

Either a compact SUV or a coupe derived from the B-class platform will go on sale first. Neither will wear a B-class badge. Joachim Schmidt, executive vice president for sales, did not disclose the planned vehicles' names.

The United States won't get the smaller hatchback that goes on sale in Europe at the end of next year as an A-class model.

Schmidt said Mercedes later will add a compact van featuring its electric drivetrains. Mercedes is considering a fuel cell model or an electric with a range-extending gasoline engine. Details and timing are still being worked out.

The van will have a second floor to house a battery. This approach won't use up precious interior room, Schmidt said. The fuel cell van also will help Mercedes meet strict U.S. fuel economy standards for the 2016 model year.

"I don't know when this will come. We are working very hard on this alternative drivetrain," Schmidt said.
"It is important for us at Mercedes-Benz to be the leader, not the follower."

 

Audi likely to sell A1 compact in the U.S.

Jason Stein - Automotive News Europe | October 4, 2010 06:01 CET

PARIS -- Audi is considering selling its next-generation A1 compact car in the United States to capitalize on consumer interest in small cars and hedge against fluctuations in fuel prices.

"Consumers are asking for small cars, and there is the likelihood that the second generation of the A1 will come to the U.S.," Peter Schwarzenbauer, Audi AG's board member for sales and marketing, said last week during an interview on the sidelines of the Paris auto show.

Although a final decision won't be made for 18 months, Schwarzenbauer said the likelihood is "quite high" that Audi would import the pint-sized two-door car.

"We have plenty of time to see how the segment is developing," he said.

Schwarzenbauer said Audi's board decided several years ago not to import the A1 when fuel prices were low and consumer sentiment for small cars wasn't as strong. But recent sales of the A3 hatchback and diesel engines have shown that consumers will consider smaller vehicles and alternative engines.

"With the A1, the same thing could happen" with consumers, he said.

The A1 was originally built to sell only in Europe but will be expanded to more markets in the next few years, including China after 2011.

It went on sale in August in Europe and competes with BMW's 1 series and Daimler AG's Mercedes-Benz A class. The A1 starts at 15,800 euros (about $21,500) in Germany.

Audi decided to expand sales of the A1 after a Web site the automaker set up for the car attracted more than 150,000 interested customers around the world, Schwarzenbauer said.

"We will expand our production capacities by 20 percent" for the A1, he said in an interview this year. Audi initially pledged to produce about 100,000 A1s annually at its Brussels factory.

Audi, which is targeting record sales of more than 1.08 million vehicles this year, has a goal of dethroning BMW as the world's largest maker of luxury cars by 2015, when it wants to reach annual sales of 1.5 million.

 

Bridgestone Returns to Paris to Showcase Partnership with French Car Manufacturers 

PARIS - October 4, 2010: Visitors to Bridgestone's exhibit stand at the 2010 Paris Motor Show will be able to observe Bridgestone's latest premium range up close on the all new Citroën DS3 and Peugeot 207 SW Outdoor. Bridgestone's presence at the motor show coincides with 7 years as an original equipment supplier to French car manufacturers Renault, Peugeot and Citroën. Bridgestone introduces the new Ecopia EP150 high efficiency tyre in September 2010 to showcase Bridgestone's vision for the future of environmentally friendly motoring.

 

RoadSafe Pledges Tyre Safety Month Support

Created: September 30, 2010 02:19:00 PM

The road safety partnership RoadSafe has stated its support for near-namesake TyreSafe’s Tyre Safety Month initiative, which runs throughout October. Adrian Walsh, RoadSafe director says: “Tyres are a vital part of your car. You cannot brake, steer or accelerate properly when they are worn or underinflated. Drivers must remember to check them regularly. It can save a life.”

RoadSafe also explains the seriousness of tyre safety to its readers, explaining why well-kept tyres are essential to road safety. Here is the organisation’s statement: “Tyres are essential in braking, accelerating and steering. A driver risks failure in all three if they are in poor condition. That is why RoadSafe is supporting Tyre Safety Month, this October.

“Underinflated or worn tyres have more contact with the road than well-kept tyres. This generates excess heat, which causes damage. The results are: less grip on the road, increasing stopping distances and the chance of skidding; reduced control of the vehicle; quicker wear of the tyres, leading to more frequent replacement; increased fuel consumption.

“All these consequences cost drivers in terms of safety and money. Government takes tyre safety seriously. Drivers caught with unsafe tyres face fines of up to £2,500 and three points on their licence per tyre. Divers can quickly and easily check their tyre pressure at home or at a service station. The manufacturer’s handbook will have the recommended pressure levels.

“Tread depth can also be checked in minutes, with a simple 20p test. Tread should be a minimum of 1.6mm deep, any less and it is illegal. Follow these simple instructions to check, or visit the TyreSafe website for a video demonstration.”

 

European Launch for Bridgestone Ecopia Truck Range 

Created: September 23, 2010 07:49:00 AM

In early September, Bridgestone released its latest European market Ecopia passenger car tyre. The introduction of this environment-oriented product has now been followed up with the European launch of an Ecopia truck tyre range. At the IAA Commercial Vehicle show in Hannover, Germany, Bridgestone Europe CEO Mac Ohashi formally announced the line-up’s debut in our region.

“Today, I am pleased to announce the launch of a new range of Ecopia truck tyres and retreads,” stated Ohashi at a press launch held on September 22. “With these tyres we want to help truck operators to reduce their costs even further and contribute towards the protection of the environment.”

An Ecopia range for commercial vehicles has been available on the Japanese market since 2002, and Bridgestone Europe CEO reports it has been “well received” by truck operators there. The Ecopia line-up we are receiving in Europe differs from its Japanese counterpart, as Ohashi explained. “Our development teams have now produced a range of steer, drive and trailer tyres tuned for the European market of highway oriented fleet operators. This range builds on the already proven and popular R249 steer and M749 drive patterns, as you can see, which give long durability and excellent retreadability, and now the rolling resistance has been improved. We are adding to these a completely new trailer tyre, the R109 Ecopia.

“This Ecopia range includes fuel efficiency, with an up to 12 per cent reduction in rolling resistance, for complete tractor-trailer combination compared to the previous line-up,” Ohashi continued. “The big step forward is made without any compromise in any other tyre performances. It is achieved by applying new technologies.”

The Ecopia truck tyre range is now available in Europe in what Bridgestone calls the “most popular” sizes. These most sought after fitments will be joined by other sizes in the near future and Bridgestone anticipates a full size line-up being available by the first quarter of 2011. Most of the Ecopia truck tyres sold in Europe will be manufactured in Bridgestone’s two European truck tyre plants, although some additional supplies will also be imported from Japan.

In keeping with the environmental emphasis attached to the Ecopia brand name, Bridgestone has launched a retread product alongside the new tyre range.

“At Bridgestone we clearly recognise the needs of truck operators to reduce their operating costs and that retreading of truck tyres is one of the big contributors to managing costs. In response to this need, we have also developed a range of Ecopia retread patterns that reduce rolling resistance,” stated Ohashi upon announcing the range’s introduction. “By introducing Ecopia patterns in both new and retread applications we are underlying our commitment to a total tyre life fleet solution.” At present the M749 and R109 Ecopia patterns are available in a retreadable option.

“Today is an important day for Bridgestone Europe, as we prepare ourselves for the coming challenges with a state of the art range of truck tyres,” concluded Mac Ohashi.

 

BRIDGESTONE EUROPE'S TOTAL FLEET MANAGEMENT DRIVING DOWN COST OF TRANSPORT

Bridgestone Europe says its Total Fleet Management program is helping customers raise vehicle productivity and drive down costs per kilometre by optimising tyre performance over the total tyre life. The program consists of Total Fleet Systems aimed at reducing national and trans-national fleet operating costs. At the heart of the service is a sophisticated internet-based system for effective paperless fleet management - from cost/km contracts and central billing to tyre usage and costs. The Total Tyre Management service provided by the Truck Point network is offering one-stop source of customised fleet management services right through the total tyre life. Total Retread Systems includes Bandag and its 140 plus dealerships, meeting the needs of the European transport market, where retreads represent about 40 percent of tyres fitted. And, Bridgestone's Total Tyre Range of premium truck and bus tyres and retreads has now been strengthened with Ecopia truck tyres, providing lower rolling resistance and reduced fuel consumption and costs.

The Smiters Report 

 

BANDAG TO EXPAND UNDER BRIDGESTONE OWNERSHIP IN EUROPE

Since 2008, all Bandag core operations have been fully integrated in the Bridgestone Europe organisation. Bridgestone plans to keep the current Bandag model unchanged, with activities grouped under the Bandag "Six Gears" concept: products, equipment, value-added services, sales support, fleet programmes and business consultancy solutions. At the top end of the new Bridgestone retread structure is its Qualitread, which will be progressively renamed Bridgestone Retread, in line with the global branding strategy, with focus on providing the newest Bridgestone treads and compounds to the long-haul, pan-European transport sector. Bridgestone Retread will also be at the top of the price spectrum, concentrating on costs-per-kilometre and mileage contracts. The Bandag Premium Application-Specific range will be priced just below Bridgestone Retread and above the Bandag Standard line-up, which will be strengthened with the addition of Bridgestone patterns. "2010 will see seven new products, including two new unique designs and five Bridgestone patterns, says Steven Janssens, senior manager in Bridgestone's new Retread Franchise Operations unit.

The Smiters Report

 

China will have 200 million cars by 2020; gridlock, pollution concerns grow

16 September 2010 - By Normandy Madden, Crain News Service (AA)

Beijing --The number of vehicles on China’s roads will more than double to at least 200 million by 2020, according to the Ministry of Industry and Information Technology. There were 76.2 million cars in China at year-end 2009.

Car sales reached 13.64 million units last year, overtaking the US as the world’s top car market, and are expected to reach 15 million units this year. As car use grows, concern is mounting over pollution, soaring energy demand, and traffic gridlock, according to a story by Agence France Presse.

  

BRIDGESTONE EUROPE INTRODUCES ECOPIA EP150 ECO-FRIENDLY TYRE

Bridgestone Europe is launching its new eco-friendly tyre, the Ecopia EP150, which was revealed the end of last year at the International Motor Show (IAA) in Frankfurt, Germany. The new low-rolling resistance tyre combines highlevel wet safety with lower fuel consumption and CO2 emissions, the company said. Bridgestone has accomplished this through the development of a Nano Pro-Tech compound - which lowers the rolling resistance coefficient by reducing energy loss in the top compound during rotation - combined with a new tread design featuring a connected block and thin rib, which enhances contact pressure and wet-braking performance. Versus current Bridgestone products in the same dimensions, Ecopia EP150 has a 15 percent improved rolling resistance which makes it, on average, around 3 percent more fuel efficient, and achieves a reduction in CO2 output of around 3 percent. The tyre will be introduced as an integrated replacement and original equipment product, targeting compacts and mid-sized passenger cars with 14- and 16-inch rim sizes in 55 to 65 series.

 (Bridgestone Europe NV/SA [www.bridgestone.eu] - Brussels, Belgium - Sept. 8) 


PROFESSOR RECEIVES ACS AWARD FOR WORK ON ENERGY-SAVING TYRES

Prof. Jacques Noordermeer, with his research group, is closely involved in the development of energy-saving tyres to ensure that less fuel is consumed. Now his efforts have been rewarded with the American Chemical Society's (ACS) George Whitby Award 2010. "Our group has two primary focuses," explains Prof. Noordermeer. "The first is the development of energy-saving tyres and the second is finding the most effective way to recycle used tyres." He heads up the Elastomer Technology & Engineering (ETE) research group at the University of Twente in the Netherlands. A number of research groups within the University of Twente have joined forces in the Tyre-Road Consortium, which together champion an integrated approach to the problem. This consortium of IMPACT research groups brings together the required expertise in the field of tyre behavior, road behavior and tyre-road interaction.

 (University of Twente [www.utwente.nl] - Twente, Netherlands - Sept. 8)

 

Bridgestone donates to Pakistan relief

September 08, 2010

Bridgestone Corp. will donate two million yen through the Japanese Red Cross to help with relief efforts in Pakistan, which was ravaged by a flood in July.

In addition, Bridgestone subsidiary Bridgestone Asia Pacific Ltd. will donate 3.1 million yen to aid in relief efforts.

"We would like to express our sincere condolences to those who have lost loved ones as a result of this tragedy," say Bridgestone officials.

 

CHINA HEAVY-DUTY TRUCK SALES SURGE IN Q2; 2010 FORECAST NOW ABOVE 1 MLN

Sales of heavy-duty commercial vehicles in China surged to 316,725 units in the second quarter of 2010, up 83 percent from Q2 2009, according to a report published by ACT Research Co. L.L.C. (ACT) and China's State Information Center (SIC). The recently released "China Commercial Vehicle Outlook" also provided an update to the forecast for commercial vehicle sales for the remainder of 2010 through 2014. Due to very strong demand in the first half of 2010, the forecast of full-year heavy-duty truck and tractor sales has been boosted above 1 million units, a 62-percent increase over 2009 sales. However, the sales volume is expected to decline from the second quarter peak over the second half of the year and into 2011, as China's economy eases towards slower growth. The report also provides an overview of the China economy and its impact on sales of heavy- and medium-duty trucks and buses, including details on OEM market share.

 (ACT Research C. L.L.C. [www.actresearch.net] - Columbus, Ind. - Sept. 8)

  

ASIA SBR PRICES POISED TO RISE FURTHER ON CHINESE DEMAND

Asian styrene butadiene rubber (SBR) prices are poised for another increase, as major producers revise their offers upwards, fueled by a surge in the Chinese domestic market, industry sources said today (Sept. 8), ICIS.com reported. The uptrend was likely to continue into the fourth quarter, they added. Spot offers for SBR non-oil grade 1501 have been hiked to $2,250-2,300/ton (1,755-1,794 euros/ton) CFR (cost and freight) Asia, up by $50-100/ton from previous offersm according toi ICIS. SBR non-oil grade 1502 prices in Asia have increased by about $200/ton since early August, ICIS data has shown. "Demand is picking up and prices have to be revised up to reflect the change in demand," a major SBR producer said. The upward price revision tracks the soaring Chinese domestic prices which surged to yuan (CNY) 18,500/ton ($2,725/ton) ex-works this week, up CNY500/ton from the previous week.

 

PORSCHE TO DEVELOP TRUCK CABS

Porsche Engineering will help Swedish truckmaker Scania toldevelop new truck cabs, in another step toward firming up ties under the Volkswagen AG umbrella.

Volkswagen holds a majority voting stake in Scania and late last year took control of Porsche, with an eye to completing a merger with the luxury sports car maker in 2011.

Scania said on Monday the two companies would develop the next generation of cab frames for its heavy-duty trucks.

"We will develop a cab frame together that is optimized for Scania's requirements on styling and functionality, as well as for rational production," said Per Hallberg, Scania's head of research and development.

Porsche spokesman Dirk Erat said: "This is not the first time Porsche Engineering has been contracted to work for a truckmaker. It already has been involved in some work for the industry, such as in Eastern Europe."

Volkswagen has in recent years pushed for closer ties between Scania and another company in which it has a stake, German truckmaker MAN. Volkswagen owns shares equal to 71 percent of Scania votes and nearly 30 percent of MAN's.

Last month, Scania said it would study several areas of collaboration with MAN SE, including gear boxes and axles, as the companies thawed out relations badly frayed by a failed 2006 takeover attempt by the German truckmaker.

 

JAPANESE AUTOMOBILE PRODUCTION UP 16.8% IN JULY

Japanese automobile production in July was recorded at 865,762 units, up 124,515 units, or 16.8 percent, from July 2009, according to JAMA, the Japanese vehicle manufacturers' association. Domestic sales in July stood at 486,606 vehicles, up 12.9 percent, from the same month the previous year. Exports stood at 124.4 percent, compared with July 2009. Motorcycle production in Japan during July 2010 was recorded at 51,618 units, up from 48,448 units in the same month in 2009, an increase of 3,170 units, or 6.5 percent. Domestic motorcycle sales (factory shipment) in July stood at 30,631 units, down 5.8 percent from July 2009. Motorcycle exports stood at 116.5 percent, compared with the same month the previous year. Automobile exports in July 2010 was 422,641 units, up 82,993 units, or 24.4 percent, from July 2009. Total value of automobiles exported in July 2010 was $12,391.60 million, up $3,255.20 million, or 35.6 percent, from July 2009. Motorcycle export was 35,154 units in July, up 16.5 percent from a year ago, valued at $294.83 million.

 

BRIDGESTONE ANNOUNCES CROSS-SEGMENT EUROPEAN PRICE INCREASE

Bridgestone has announced that it will raise the prices by between 3 and 6 per cent of its consumer, commercial and speciality tyres in Europe during October 2010. Bridgestone Europe CEO and president Makio Ohashi said that “historically high” raw materials prices had necessitated the hike, while “further increases will be necessary in the coming year”.

Ohashi also commented that the company’s European factories were “operating…at full production and the production expansion of new East European plants is in progress as planned. In order to continue fulfilling our commitment to European market, we have to make this sensible decision to increase prices and maintain a sound and solid business foundation.”

 

ROADSAFE: MOT MUST STAY ANNUAL

RoadSafe is urging transport minister Mike Penning, to maintain the MOT test as an annual check-up for vehicles. In 2008, the Department for Transport said the MOT failure rate was high, at 35 per cent. Between 2009 and 10, the failure rate continued its steady increase to 37 per cent. Despite this, the DfT is looking into reducing the required frequency of tests to fall in line with Europe. In the UK, vehicles must have their first test within three years of registration, and annual tests thereafter. As a minimum, EU law requires vehicles to have their first test when they are four years old and subsequent tests every two years. Most European countries follow the EU minimum requirement and there is pressure on the UK to do the same. RoadSafe is warning that this will lead to more crashes, caused by poorly maintained vehicles.

Testers in the UK identify 8.5 million cars with defects every year. In its own review of the MOT in 2008, the DfT said reducing the test’s frequency would significantly increase the number of unroadworthy cars and casualties. 

Vehicle owners are expected to service their vehicles between tests, but there is evidence that many drivers fail to. The Tyre Industry Federation says 12 per cent of tyres are illegal on replacement, and this number is increasing as the economic downturn continues.

RoadSafe director, Adrian Walsh said: “Many owners just don’t realise that tyres are a vital part of the braking system. They are one of several essential safety features that drivers seldom check. An annual MOT is vital for picking up these problems. RoadSafe joins the Tyre Industry Federation, and other campaigners, with a warning to government, that extending the period between MOT tests will put lives at risk.”

One argument for increasing the time before a vehicle’s first MOT and reducing the frequency of subsequent tests, is that modern vehicles are more reliable. While sharing this view, Roadsafe warns that this is a separate issue from the MOT.  “Commercial vehicles can do up to 300,000 miles in their first three years on the road. In this time, they see significant wear, which can lead to higher failure rates for some vehicle groups. Class seven vans, for example, reportedly had a 50 per cent failure rate in 2009/10.”

RoadSafe argues that extending the time before a vehicle’s first MOT could increase the number of unsafe vehicles on our roads, which, as the DfT said itself in 2008, could lead to more road casualties.

 

VOLVO WANTS BIGGER LOAN FROM EU BANK TO DEVELOP GREENER CARS

STOCKHOLM (Reuters) -- Volvo Cars, owned by China's Geely Automobile, wants a bigger European Investment Bank (EIB) loan than previously planned.

The Swedish automaker plans to seek 600 million euros ($758 million) rather than 500 million from the EIB, which is the European Union's long-term lending institution.

Volvo said on Tuesday it has restarted talks with Sweden about a government guarantee for the EIB loans to develop environmentally friendly vehicles.

Volvo was granted an initial 200 million euro loan in March 2009 but its takeover by Geely put talks about a guarantee on hold ahead of the deal's completion.

Volvo spokesman Per-Ake Froberg said : "Time has gone by, so we are now talking about a different timeframe. Instead of 2009 to 2012, this now concerns projects running from 2010 to 2013 and that effects the sum we are borrowing."

Geely completed the purchase of Volvo from Ford Motor Co. earlier this month, paying $1.3 billion in cash and issuing Ford a $200 million note.

Geely said earlier this year it remained open to a possible EIB loan though it had all financing in place for the takeover of Volvo, the biggest overseas purchase by a Chinese company in the automotive sector.

Carmakers across Europe called for loans backed by governments to help them develop less-polluting vehicles as the global financial crisis left many of them fighting for survival in the face of weaker demand and mounting development costs.  

 

PARIS MOTORSHOW 2010

TOYOTA TO LAUNCH SMALL MINIVAN IN EUROPE

OPEL MERIVA RIVAL WILL DEBUT IN PARIS

Toyota will re-enter the small minivan segment in Europe with the Verso-S. The model will debut at the Paris auto show on September 30 and will go on sale early next year.

The Verso-S will be the shortest small minivan on sale in Europe, Toyota said, with a length of less than 4000mm. It will "showcase efficiency in space management," the automaker said.

Toyota stopped selling its Yaris Verso small minivan in Europe in 2006, leaving the Japanese company with a gap in a fast expanding segment.

In 1999, when the Yaris Verso was introduced, the segment totalled 80,000 annual sales in Europe. Last year, the segment had sales of nearly 407,000, according to JATO Dynamics.

The Verso-S will be based on the new generation of the Rectis, a Yaris-based model sold in Japan.

Europe's small minivan segment is led by the Opel/Vauxhall Meriva, with 83,746 units sold last year, ahead the Citroen C3 Picasso, with 75,723 units and the Renault Modus/Grand Modus at 71,054 units, according to JATO.

Yaris Verso sales peaked to 34,449 units in 2000. Toyota sold almost 158,000 units of the Yaris Verso in Europe.

 

PARIS MOTORSHOW 2010

CITROEN UNVEILS UPSCALE COMPACT CAR

COUPE-STYLED DS4 IS THE SECOND MODEL IN NEAR-PREMIUM DS LINE

Citroen has released first details of the new DS4, the second model in the French brand's upscale DS line.

The DS4 is based on the C4 compact hatchback, but is taller than the C4 as well as slightly shorter and marginally wider.

Despite being taller than the C4, the DS4 does not look like a tall crossover. Its exterior styling is sleeker than the C4 and the five-door car has coupe-style features such as the rear door handles hidden in the C-pillar.

To create a quieter cabin, the DS4 has door-sealing similar to German premium cars and extra noise insulation material in the engine bay, Citroen said.

To attract affluent buyers, the DS4 will offer with a high level of customization, with five combinations of leather and different two-tone interiors, as well as four melodies to personalize the horn sound and two colors for the instrument panel.

Citroen said the DS4's high-seating position, as well as the panoramic windshield, offer exceptional visibility.

The car will have an emergency call system with a built-in SIM card that calls for assistance automatically after an accident or other emergency.

The DS4 will be launched with three gasoline and two diesel engine choices. The 1.6-liter gasoline engine was co-developed with BMW AG and will be available as a 120-hp normally aspirated version or in 155-hp and 200-hp turbocharged configurations. A 1.6-liter turbodiesel will be offered with 160-hp or 110-hp.

The DS4 will debut at the Paris auto show on September 30, along with the latest-generation C4.

The new C4 will go on sale by the year end while the DS4 will arrive in showrooms in the second quarter of 2011.

The DS name is short for Distinctive Series and harks back to Citroen's first DS, which launched in 1955 and became a 20th century automotive icon.

Citroen launched its first DS car, the C3-based, three-door DS3, in March. The DS3 was partly inspired to BMW's Mini in terms of product personalization.

Citroen sold 26,376 units of the DS3 in the first seven months, according to the latest sales data from the JATO Dynamics market research company. In the same period, C3 sales increased 51.8 percent to 149,529.

A third DS model, which reports say will be a crossover based on the next C5 mid-sized car, is due in 2012.

 

MITSUBISHI TO SELL ELECTRIC CAR IN EUROPE FOR 30,000 EUROS

Mitsubishi Motors Corp. says most European customers will be able to buy its MiEV electric car for less than 30,000 euros ($38,000).

The Japanese automaker will launch the car in 14 European markets including France, the UK, Germany, Spain and Italy, starting in December. 

Mitsubishi said the price of the car will differ according to country but will be set between 33,000 euros and 35,000 euros, including batteries.

The final cost to the customer will be under 30,000 euros in the majority of countries where it is sold, taking into account government incentives, Mitsubishi said.

Countries such as the UK and France have said they plan to offer buyers subsidies to purchase electric cars.

The European MiEV will debut at the Paris auto show on September 30. Unlike the Japanese market version, the European MiEV includes electronic stability control, side airbags and curtain airbags as standard equipment. It also has improved interior comfort.

The MiEV has a range of 150km on a single charge of its lithium ion batteries and a top speed of 130 km/h from its electric motor, which has a power output of 49kW, equivalent to 67 hp.

 

RENAULT-NISSAN TO ADD CAPACITY IN KOREA TO REDUCE JAPAN DEPENDENCE

ABU DHABI (Bloomberg) -- Renault-Nissan plan to increase production in South Korea to cut their reliance on Japan as a manufacturing base as the yen strengthens, CEO Carlos Ghosn said. 

“With the strengthening of the yen and the competitiveness of the yuan, those who have capacity in Korea today have a plus,” Ghosn told a media roundtable in Abu Dhabi on Monday. “If something erratic happened in the exchange rate, you don't find yourself with your eggs in the same basket.”

Renault said Aug. 10 it was exploring other ways to expand its business in Southeast Asia after dropping out of the bidding for Ssangyong Motor Co., the South Korean carmaker operating under bankruptcy protection. 

Korea's Renault Samsung Motors Co., 80 percent owned by Renault, operates a plant in Pusan, Korea, that exports the Nissan Sunny to the Middle East.

Nissan, Japan's third-largest carmaker, is exporting 50,000 cars annually to the Middle East from the South Korean plant, Ghosn said.

Renault separately is using the factory, with maximum capacity of 240,000 vehicles, to ramp up production of a “Latitude” version of its SM5 sedan for export to the Middle East and Europe.

Every one-yen increase in the Japanese currency against the dollar reduces Toyota Motor Corp.'s annual operating profit by 30 billion yen ($354 million), according to the world's biggest carmaker.

Sony Corp., which generates more than 70 percent of revenue outside of Japan, says it loses about 2 billion yen of annual operating profit for each yen gain against the U.S. currency 

The yen has advanced 14 percent this year based on Bloomberg Correlation-Weighted Currency Indexes, the biggest gain among the currencies of the developed world. 

The yen rose as high as 83.60 per dollar on Aug. 24, the strongest since June 1995, from 2009's low of 101.44 yen reached in April that year. The currency gained to touch 105.44 per euro, the highest since July 2001 and up from 134.38 in January.

Middle East expansion

Nissan plans to sell 200,000 vehicles in the Middle East and North Africa in the fiscal year through March 2011, Ghosn said. The figure includes 130,000 units for the six countries making up the Gulf Cooperation Council.

Sales in the Middle East, North Africa and India grew by 27 percent in August from a year earlier, Gilles Normand, vice president for the region, said.

Nissan continues to export cars to Iran “for the time being” and is cooperating with the Japanese government on sanctions on Iran from the United Nations, Normand said.

“We are respecting all sanctions,” he said. “We are waiting for the Japanese government to tell us what to do.”

 

BRIDGESTONE TURANZA ER300 SCORES ON SAFETY

Bridgestone's Turanza ER300 produced "excellent results" in the U.K. Autocar magazine summer-tyre test published this month. In the evaluation of six of Europe's leading tyre brands in size 205/55R16 on a Golf FDI 2.0, the Turanza scored reliably and consistently in both wet and dry areas. In dry handling, the Turanza ER300 was the clear winner. Other leading brands in the Autocar summer-tyre test were: Continental, Dunlop, Goodyear, Michelin and Vredestein. "The tyres tested here are in the top echelon," says Autocar, "which is why their products are selected by the major car makers." In summary, Autocar warns readers against the temptation of cheap tyres: "tyres should never be regarded as commodities and bought on price alone. They are high-tech products that can make a large, perhaps accident-saving, difference to the performance of your car." The Autocar summer-tyre test was conducted at Continental's North American proving ground near Uvalde, Tex.

The Smiters Report

 

Smart will develop new models with Renault

Diana T. KurylkoAutomotive News Europe -- August 31, 2010 06:01 CET

After a flying start in 2009, Smart sales are crashing in the United States.
But there's hope for the European microcar brand. An alliance between parent company Daimler AG and Renault/Nissan will yield a new-generation ForTwo and a new four-seat car.

Here's a look at Smart's product plans:

ForTwo: The two-seater gets a mild freshening this fall. It will be replaced in 2013 by a vehicle designed with Renault that also will replace the Renault Twingo in Europe.

ForTwo Electric: An electric car with a battery system designed by California electric-vehicle manufacturer Tesla Motors will be available for lease in eight U.S. markets in October. The 250 cars will have a five-year, $599 monthly lease. Only 50 will be leased to individuals.

In 2012, the ForTwo Electric will get an upgraded interior and switch to lithium ion batteries made by Deutsche Accumotive GmbH, a joint venture between Daimler and Evonik Industries.

ForFour: The four-seater that was killed in 2006 is being revived. It will use a longer version of the new ForTwo platform and have a rear-engine and rear-drive layout. Renault is expected to build the new ForFour alongside its Twingo. It could go on sale in 2014.

 

CHENG SHIN SET TO LEAD AUTOMOTIVE TIRE MAKING IN CHINA

Cheng Shin Rubber Industry Corp., one of Taiwan's leading manufacturers of tires, announced its plan to set up a plant to focus on bicycle and motorcycle tires in Zhangzhou, Fujian province, The Taiwan Economic News reported. In addition to the proposed plant in Zhangzhou, the company will also set up a plant in Xiamen, Fujian province, with annual production capacity of 10 million automobile tires, which, as noted by Cheng Shin Vice Chairman T.J. Lo, will help Cheng Shin become the largest automotive tire maker in China. With the well-established Maxxis brand, Cheng Shin is developing another new brand: Presa, aiming to broaden its global market by pricing the new brand differently from the Maxxis brand. Cheng Shin sells tires under two brands in China, with Cheng Shin and Cherry Blossom brands commanding over half its total sales worldwide. An industry insider believes Cheng Shin will secure $3.125 billion in annual sales in the foreseeable future, driven by production expansion and branding.

 (The Taiwan Economic News - Taipei - Aug. 30)

 

Renault-Nissan to add capacity in Korea to reduce Japan dependence
Automotive News Europe -- August 31, 2010 06:01 CET  

ABU DHABI (Bloomberg) -- Renault-Nissan plan to increase production in South Korea to cut their reliance on Japan as a manufacturing base as the yen strengthens, CEO Carlos Ghosn said.

“With the strengthening of the yen and the competitiveness of the yuan, those who have capacity in Korea today have a plus,” Ghosn told a media roundtable in Abu Dhabi on Monday. “If something erratic happened in the exchange rate, you don't find yourself with your eggs in the same basket.”

Renault said Aug. 10 it was exploring other ways to expand its business in Southeast Asia after dropping out of the bidding for Ssangyong Motor Co., the South Korean carmaker operating under bankruptcy protection.

Korea's Renault Samsung Motors Co., 80 percent owned by Renault, operates a plant in Pusan that exports the Nissan Sunny to the Middle East.

Nissan, Japan's third-largest carmaker, is exporting 50,000 cars annually to the Middle East from the South Korean plant, Ghosn said.

Renault separately is using the factory, with maximum capacity of 240,000 vehicles, to ramp up production of a “Latitude” version of its SM5 sedan for export to the Middle East and Europe.

Every one-yen increase in the Japanese currency against the dollar reduces Toyota Motor Corp.'s annual operating profit by 30 billion yen ($354 million), according to the world's biggest carmaker.

Sony Corp., which generates more than 70 percent of revenue outside of Japan, says it loses about 2 billion yen of annual operating profit for each yen gain against the U.S. currency.

The yen has advanced 14 percent this year based on Bloomberg Correlation-Weighted Currency Indexes, the biggest gain among the currencies of the developed world.

The yen rose as high as 83.60 per dollar on Aug. 24, the strongest since June 1995, from 2009's low of 101.44 yen reached in April that year. The currency gained to touch 105.44 per euro, the highest since July 2001 and up from 134.38 in January.

Middle East expansion
Nissan plans to sell 200,000 vehicles in the Middle East and North Africa in the fiscal year through March 2011, Ghosn said. The figure includes 130,000 units for the six countries making up the Gulf Cooperation Council.

Sales in the Middle East, North Africa and India grew by 27 percent in August from a year earlier, Gilles Normand, vice president for the region, said.

Nissan continues to export cars to Iran “for the time being” and is cooperating with the Japanese government on sanctions on Iran from the United Nations, Normand said.

“We are respecting all sanctions,” he said. “We are waiting for the Japanese government to tell us what to do.”

 

Hauling Out of the Recessionary Market

Created: August 26, 2010 04:11:00 PM

As in almost all industries, the calamity of the credit crunch has had a huge impact on the truck tyre market, reducing demand for products, and forcing manufacturers and traders to regroup. As a result of the economic crisis commercial vehicle businesses were forced to become savvier, demanding more from their tyres. Others simply went under. So with the remaining customers demanding improved performance, mileage and fuel consumption from their tyres while simultaneously being under economic pressure themselves, what affect has this scenario had on the size and development of the market? And what does this mean for truck tyre pricing both in the UK and across Europe?

In 2007 before the credit crunch bit down, the total UK new commercial vehicle tyre replacement market totalled some 1.4 million units. Add in another million or so retreads and the truck tyre total replacement parc was around 2.5 million tyres/year. During 2008 and 2009 the market in the UK, and across Europe, experienced savage double-digit drops in demand. It appears to be recovering now (more on this throughout this section), but the sources Tyres & Accessories spoke to generally accept that 1.2 million new unit tyres a year plus another 900,000 or so retreads is now a considered to be a good UK benchmark figure.

One premium manufacturer T&A spoke to commented that our preview for this month’s Truck Tyre feature, which suggests the market has entered recovery, would have looked pretty stupid if it had been printed at the start of the year. However, by the second quarter and into the start of the second half of 2010, indications of a positive uptick in demand have become increasingly clear. To put this in perspective, during the last peak in the market in 2007/2008 monthly UK replacement volumes were seldom much below 100,000 units. By 2009, the mid to high 80,000s had become the norm, with even less at the beginning of this year.

At this point it is worth pointing out that there was said to have been one artificial spike that saw demand return to peak levels around the end of the first quarter, but this was put down to tyre buyers bulk purchasing in advance of price increases implemented in the first half of the year. After a temporary correction, demand reportedly returned to around the 90,000 unit/month mark in June. Since June there are signs that the market is picking up again and steadily returning to more familiar – and  pleasant – territory. Look a little closer and you can see that there is a particular increase in demand for tyres for the construction industry, which is widely seen as a good indicator of increased overall economic confidence.

Keeping to a budget: mileage, fuel or cost conscious?
Nevertheless, the highly competitive nature of the UK haulage industry means brand loyalty is difficult to build and sustain and that there will always be an emphasis on bottom line cost. This also translates into a potential over-emphasis on mileage performance amongst some customers. The other side of the coin is that if tyres consume less fuel, they pay for themselves. But still, some customers remain worried about initial product cost and so have been tempted away to purchase budget products.

What the premium manufacturers are looking to capitalise on is the fact that throwing away a cheap Far Eastern casing, which is un-retreadable, with no casing aftermarket to add value to the product, is as a waste of the 80 litres of oil that went into producing it. The premium manufacturers also state that they these products are more liable to fail when it comes to giving operators the maximum mileage and fuel efficiency for their money.

However, this may not be quite as easy an argument as they hope. Especially with the aforementioned brand fickleness in mind, added to the fact that a recent Morgan Stanley survey of tyre dealers found that a “green tyre” argument (which the premium manufacturers are increasingly trying to leverage) is the least important factor for dealers when they come to selling a tyre.

Truck Tyre Pricing in 2010…

European market bounces back
Looking across the European truck tyre market as a whole, there are clear signs of a considerable return to form (see “A Tale of Two Markets” later in this section for further analysis).

According to Michelin, on a pan-European level the truck tyre aftermarket grew 35 per cent in the first half of 2010, compared with a 16 per cent drop in the same period the year before. A recent Morgan Stanley survey suggests this puts the European truck tyre market in line for a total of 10 per cent growth this year, following an overall drop of 19.8 per cent last year. These analysts expect growth of a further 10 per cent in 2011 and then 6 per cent more in 2012.

The overall European pricing environment however, is much less clear. While 73 per cent of the tyre dealers questioned in Morgan Stanley’s European Survey of Tyre Distributors said the wholesale cost of tyres was more this year than it was in 2009, 21 per cent said prices stayed the same or decreased (7 per cent and 14 per cent respectively). Of the 14 per cent that said truck tyre prices decreased, 46 per cent (6 per cent of the total surveyed) said prices actually decreased more than 10 per cent. Another 3 per cent of respondents said their truck tyre prices fell 5 – 10 per cent.

The survey questioned tyre dealers from around Europe, drawing answers from companies in Germany, France, Italy, UK and Russia (with roughly a fifth of the answers coming from each of the five countries). This could account for some regional variations and foreign exchange differences, but the fact that just under a sixth of those surveyed saw prices drop significantly, while three quarters saw prices rise, could suggest that some tyre companies are looking to occupy stronger market share positions and are willing to strategically delay inevitable price increases in order to do it.

 

SRT Secures Russian Renault Supply Deal

Created: August 27, 2010 01:50:00 PM

Renault is in the process of launching several models in Russia through its partnership with vehicle manufacturer AvtoVAZ.

Included in this arrangement are the Logan and Sandero, which will be imported in CKD form and produced in AvtoVAZ’s Moscow factory from September 2010 onwards. Sibur-Russian Tyres reports its Cordiant tyre brand is being fitted as exclusive original equipment on these two models. The tyre maker anticipates it will ship some 100,000 tyres for the Logan and Sandero by the end of 2010.

 

Bridgestone: UK Truck Tyre Market is 6-8% up on Last Year

Created: August 26, 2010 06:53:00 AM

Bridgestone UK reports that the new tyre market is starting to show signs of recovery, with the company’s data indicating that the market is running 6 - 8 per cent up on the same time last year. At the height of the recession, it was noted that fleets were parking up some units and using the dormant vehicles’ tyres to keep running costs lower in a process commonly known as cannibalisation. These stocks are now said to be coming to an end and fleets are placing new orders. There also appears to be a genuine increase in tyre demands from fleets. This is mainly due to increases in haulage and delivery volumes. However, although this activity is seen as positive it is still well below the level prior to the recession.

Despite the recession, Bridgestone reports it has maintained its position as the market leader when it comes to new truck tyres. Roger Moulding, commercial marketing manager for Bridgestone UK commented: “I believe…we can attribute our success to our Total Tyre Management package.  Dealers are increasingly using this package to win fleets for themselves and Bridgestone.”

Further development of the package is expected over the next six months to include a new remote tyre pressure monitoring system, which Tyres & Accessories understands is currently being tested on selected fleets in the UK. The technology is said to be patent pending and part of pan-European project, driven by the demands of forward-looking markets such as the UK’s.

In addition November will see Bridgestone launch a new Ecopia fuel saving truck tyre. Ecopia will be Bridgestone’s first environmentally focused tyre and has been designed to not only provide fuel efficiency but to also include “increased durability, reduced impact of raw material extraction and tyre production along with considered casing disposal.” This rounded view of a tyre and its complete impact on the environment is a first for Bridgestone. The Ecopia range will be available in both new and retreaded tyres.

Bridgestone representatives also hope to announce news of further fleet acquisitions and retention shortly.

Regroove or retread?
In the midst of a highly competitive and tentatively recovering market place, tyre companies of all kinds are doing everything they can to extend the working life of their products and therefore demonstrate the mileage strength they offer. One increasingly common way of doing this is to regroove casings prior to retreading and therefore gain extra usage. However, Bridgestone doesn’t appear to be pushing regrooving as hard as its main competitor, Michelin preferring to promote the life of the casing as a whole above the tread of the tyre. While Michelin recently told T&A of increasing regrooving rates, Bridgestone representatives pragmatically point out that it can sometimes be better to get a good quality casing back rather than squeeze the last miles out of it through regrooving and risk exposing its cords.

This view suggests that getting the casing retreaded rather than that extra regroove is preferable to losing a valuable casing, which could carry the vehicle for tens of thousands more kilometres. But that is not to say that Bridgestone is unaware of the ecological and economical reasons for maximising casing life. In fact the firm is said to be “injecting a new philosophy into the ecology of truck tyres” with both the launch of it Ecopia product and enhancements in its retread range.