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Sumitomo's Richard Smallwood testifies against proposed auto parts tariffs
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WASHINGTON—Imposing tariffs on imported auto parts would harm rather than help the U.S. auto industry and American consumers, according to Richard Smallwood, CEO and president of Sumitomo...
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WASHINGTON—Imposing tariffs on imported auto parts would harm rather than help the U.S. auto industry and American consumers, according to Richard Smallwood, CEO and president of Sumitomo Rubber North America. WASHINGTON—Imposing tariffs on imported auto parts would harm rather than help the U.S. auto industry and American consumers, according to Richard Smallwood, CEO and president of Sumitomo Rubber North America. $WASHINGTON—Imposing tariffs on imported auto parts would harm rather than help the U.S. auto industry and American consumers, according to Richard Smallwood, CEO and president of Sumitomo Rubber North America.
USTMA ambassadors showcase industry in D.C.
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WASHINGTON—Anthony Jackson, a technical leader at the Goodyear plant in Fayetteville, N.C., was hard at work one day recently when he received a call to go to the manufacturing director's...
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WASHINGTON—Twelve tire industry production line and middle management workers were chosen from the member companies of the U.S. Tire Manufacturers Association to represent the industry in meetings in Washington. WASHINGTON—Twelve tire industry production line and middle management workers were chosen from the member companies of the U.S. Tire Manufacturers Association to represent the industry in meetings in Washington. $WASHINGTON—Twelve tire industry production line and middle management workers were chosen from the member companies of the U.S. Tire Manufacturers Association to represent the industry in meetings in Washington.
Auto industry to tell Commerce Department to ditch tariff proposal
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WASHINGTON—A wide spectrum of auto interests, armed with the latest impact studies, will warn at a Commerce Department hearing July 19 that raising auto tariffs would severely harm the...
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WASHINGTON—A wide spectrum of auto interests, armed with the latest impact studies, warned at a Commerce Department hearing July 19 that raising auto tariffs would severely harm the industry and consumers. WASHINGTON—A wide spectrum of auto interests, armed with the latest impact studies, warned at a Commerce Department hearing July 19 that raising auto tariffs would severely harm the industry and consumers. $WASHINGTON—A wide spectrum of auto interests, armed with the latest impact studies, warned at a Commerce Department hearing July 19 that raising auto tariffs would severely harm the industry and consumers.
No one injured at Emerald plant following blast, fire
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AKRON—Those living and working within a half-mile radius of Emerald Performance Materials' Akron plant were evacuated shortly after 1 p.m. July 18 in response to an explosion and subsequent...
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AKRON—Those living and working within a half-mile radius of Emerald Performance Materials' Akron plant were evacuated shortly after 1 p.m. July 18 in response to an explosion and subsequent blaze that filled the air with thick plumes of smoke. AKRON—Those living and working within a half-mile radius of Emerald Performance Materials' Akron plant were evacuated shortly after 1 p.m. July 18 in response to an explosion and subsequent blaze that filled the air with thick plumes of smoke. $AKRON—Those living and working within a half-mile radius of Emerald Performance Materials' Akron plant were evacuated shortly after 1 p.m. July 18 in response to an explosion and subsequent blaze that filled the air with thick plumes of smoke.
Bridgestone to invest $12 million in Illinois tire plant
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BLOOMINGTON, Ill.—Bridgestone Americas Inc. is investing $12 million to expand off-the-road tire production at its plant in Bloomington, adding multiple sizes and patterns for 29-, 33- and...
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BLOOMINGTON, Ill.—Bridgestone Americas is investing $12 million to expand off-the-road tire production at its plant in Bloomington, adding multiple sizes and patterns for 29-, 33- and 35-inch OTR tires. BLOOMINGTON, Ill.—Bridgestone Americas is investing $12 million to expand off-the-road tire production at its plant in Bloomington, adding multiple sizes and patterns for 29-, 33- and 35-inch OTR tires. $BLOOMINGTON, Ill.—Bridgestone Americas is investing $12 million to expand off-the-road tire production at its plant in Bloomington, adding multiple sizes and patterns for 29-, 33- and 35-inch OTR tires.
Conti to revamp as holding company; eyes IPO for powertrain business
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HANOVER, Germany—Continental A.G. is planning to reorganize by 2020 into a holding company with three business sectors—rubber, automotive and powertrain—with the powertrain...
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HANOVER, Germany—Continental is planning to reorganize by 2020 into a holding company with three business sectors—rubber, automotive and powertrain—with the powertrain business being set up as an independent, publicly held company. HANOVER, Germany—Continental is planning to reorganize by 2020 into a holding company with three business sectors—rubber, automotive and powertrain—with the powertrain business being set up as an independent, publicly held company. $HANOVER, Germany—Continental is planning to reorganize by 2020 into a holding company with three business sectors—rubber, automotive and powertrain—with the powertrain business being set up as an independent, publicly held company.
Jason adds to hose program's support team
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MARCO ISLAND, Fla.—Jason Industrial Inc. said it is having success thus far with the hydraulic hose program it introduced in mid-2017, especially because it has beefed up its technical...
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MARCO ISLAND, Fla.—Jason Industrial said it is having success thus far with the hydraulic hose program it introduced in mid-2017, especially because it has beefed up its technical support team. MARCO ISLAND, Fla.—Jason Industrial said it is having success thus far with the hydraulic hose program it introduced in mid-2017, especially because it has beefed up its technical support team. $MARCO ISLAND, Fla.—Jason Industrial said it is having success thus far with the hydraulic hose program it introduced in mid-2017, especially because it has beefed up its technical support team.
Self-driving bill critics oppose maneuver to clear Senate
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WASHINGTON—Safety and consumer advocates are urging senators to reject a parliamentary maneuver to secure passage for stalled legislation governing self-driving cars by attaching it to a...
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WASHINGTON—Safety and consumer advocates are urging senators to reject a parliamentary maneuver to secure passage for stalled legislation governing self-driving cars by attaching it to a must-pass reauthorization for the Federal Aviation Administration. WASHINGTON—Safety and consumer advocates are urging senators to reject a parliamentary maneuver to secure passage for stalled legislation governing self-driving cars by attaching it to a must-pass reauthorization for the Federal Aviation Administration. $WASHINGTON—Safety and consumer advocates are urging senators to reject a parliamentary maneuver to secure passage for stalled legislation governing self-driving cars by attaching it to a must-pass reauthorization for the Federal Aviation Administration.
SUVs, CUVs may be curtailing growth of OE V-, Z-rated tires
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AKRON—The share of the U.S. original equipment and replacement tire markets held by high-performance tires—defined as H-rated and higher—has risen for eight straight years,...
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AKRON—The share of the U.S. original equipment and replacement tire markets held by high-performance tires has risen for eight straight years, according to U.S. Tire Manufacturers Association data, but growth for two classifications seems to be stalled. AKRON—The share of the U.S. original equipment and replacement tire markets held by high-performance tires has risen for eight straight years, according to U.S. Tire Manufacturers Association data, but growth for two classifications seems to be stalled. $AKRON—The share of the U.S. original equipment and replacement tire markets held by high-performance tires has risen for eight straight years, according to U.S. Tire Manufacturers Association data, but growth for two classifications seems to be stalled.
HS continues growth in North America
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DETROIT—Hwaseung R&A Co. Ltd. has come a long way since it first established operations in North America.The firm said it's doubled its automotive revenue since 2013, thanks largely to...
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DETROIT—Hwaseung R&A has come a long way since it first established operations in North America. DETROIT—Hwaseung R&A has come a long way since it first established operations in North America. $DETROIT—Hwaseung R&A has come a long way since it first established operations in North America.
Digital Edition
Digital Edition
Published on September 9, 2002

Michelin takes over tire sales leadership

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Date Published September 9, 2002
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Groupe Michelin, via organic growth and despite unfavorable currency swings, edged back to the top of the ranking of the world's tire makers last year, posting 2001 tire sales of $13.4 billion, 1.7 percent better than in 2000.

Michelin's gains coincided with lower sales by Bridgestone Corp., the leader of Rubber & Plastics News' ranking of global tire makers the past two years. Bridgestone's well-publicized problems in North America left sales by the Bridgestone/Firestone companies in the Americas 4.4 percent behind 2000, holding down Bridgestone's global tire sales to $13 billion, or 5.8 percent below the previous year when expressed in dollars.

Michelin added about $100 million in new revenues to 2001 sales through two moves the previous year-the creation of Michelin Shanghai Warrior Tire Co. Ltd. in China and the purchase of two tire plants and retreading and retail assets in Romania from Tofan Grup. These actions helped offset a decline in the euro-dollar exchange rate.

No. 3 Goodyear also reported lower tire sales last year vs. 2000, down 2 percent to $12.5 billion. That occurred despite the extra sales volume generated in North America by Ford Motor Co.'s recall of 13 million Firestone tires.

Goodyear's unit sales fell 1.8 percent to 219.3 million, but internally the company claims this still makes it the largest tire maker in the world on a unit basis.

Assuming this is correct, Goodyear trails Michelin and Bridgestone in revenue per unit. The company addressed the situation in 2001 by maintaining a hard line on price increases and declaring it will walk away from original equipment business that isn't profitable.

No. 4 Continental A.G.'s sales declined, as the German company shifted production from high-cost locations in Western Europe to lower-cost sites in Eastern Europe. In late 2000 and throughout 2001, the company closed tire plants in Austria, Belgium, Mexico and Sweden and sold its NTS tire retailing operation in Great Britain.

No. 5 Sumitomo Rubber Industries Ltd. fell into the red last year, although corporate sales increased 2.6 percent and operating income declined only about 11 percent. To help the company return to the black, Sumitomo President Misuaki Asai told shareholders the firm hopes to generate more than $55 million in profits by cutting manufacturing costs, personnel, capital investments and other expenses.

Sumitomo said its global purchasing alliance with Goodyear yielded nearly $50 million in cost savings vs. 1999. It expects further benefits this year as the firm's Ohtsu Tire & Rubber Co. Ltd. subsidiary gains from the deal for the first time. Sumitomo also plans to set up production in China and expand its penetration into Southeast Asia with increased manufacturing in Indonesia and new sales companies.

From a profitability standpoint, Hankook Tire Co. Ltd. topped the charts. The South Korean company reported operating and net earnings ratios of 8.5 and 2.1 percent, respectively, nosing out Michelin (6.6 and 2 percent) for the honors.

Four of the 11 tire makers with more than $1 billion in annual sales were in the red last year-Goodyear with a $203.6 million net loss, Continental ($231.2 million), Sumitomo ($59.3 million) and Kumho Industrial Co. Ltd. ($223.9 million). Only Yokohama Rubber Co. Ltd. and Hankook improved their earnings in 2001 over 2000.

Collectively, these 11 companies compiled a loss of $90.5 million for the year, compared with earnings of $827.5 million in 2000.

Reflecting the global economy during 2001, sales by nearly two-thirds of the world's 75 leading tire makers either fell or were unchanged last year-including eight of the top 10. The overall estimated value of the global tire industry's sales fell 1.8 percent in 2001 to $68.5 billion.

Together, the Big Three tire makers accounted for $38.8 billion, or 56.5 percent of the global total, and the 10 largest combined generated $55.3 billion in sales, or 80.8 percent of the total. These totals essentially are unchanged from a year ago.

The makeup of the Top 75 was stable compared with last year, with only three new faces-China's Qingdao Huaquing Tyre Industry Co. Ltd. (No. 28), Russia's Kirov Tyre Co. (No. 66) and Malaysia's Silverstone Tyre & Rubber Co. Sdn. Bhd. Ltd. (No. 68). Dropping from the list are China's Beijing Tyre Factory, Jiangxi Tyres and Liaoning Tyres Group Co. Ltd. Additionally, No. 21 Grandtour Tire (Anhui) Co. Ltd. is the new name for Anhui Jia'an Tire Co. Ltd.

China leads the way in terms of national origin, with 14 companies on the list, the largest of which-Shandong Triangle Group Co. Ltd. and Shandong Chengshan Tire Co. Ltd.-have moved up to 12th and 13th on the list, passing India's MRF Ltd. and Taiwan's Cheng Shin Rubber Industry Co. Ltd.

India follows with eight companies, then the U.S. with seven, and Japan, Russia and Taiwan with five each. South Korea and Malaysia have three each, while Iran, Italy and Ukraine have two each, and 19 other countries have one representative each.

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