Decade of growth for auto parts industry may soon be over

The auto parts industry has chalked up a decade of steady growth, but analysts and forecasters believe the strains of falling vehicle sales, rising material costs and huge demands for r&d spending could bring the party to an end.

The combination of uncertainty over future technologies, lingering import tariffs and unsettled trade issues with key trading partners — China, Mexico, Canada and Europe — will erode supplier company values and stock prices, making it harder to keep up current spending demands, many now worry.

Read the source article at Automotive News Europe

Tennessee Tire Boom: A Closeup Look at this Automotive ‘Hot Bed’ and its Implications for the Tire Industry

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Just as Akron, Ohio, was considered the rubber capital of the world, Tennessee is well on its way to become the automotive hub in the U.S. Just take a look at the numbers: 87 of 95 counties are home to automotive operations in Tennessee. That includes OEMs, such as General Motors, Nissan and Volkswagen and over 900 automotive suppliers, according to the Tennessee Department of Economic and Community Development (TNECD).

Read the source article at Tire Review

Cabot reinforcement materials unit reports earnings decline

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BOSTON—Cabot Corp.’s reinforcement materials business unit, which includes rubber carbon blacks, has reported a 2.7 percent year-on-year decline in third quarter earnings (EBIT) at $72 million.

The company’s financial statement, released Aug. 5, attributed much of the decline to lower margins in China and the global automotive slowdown.

Read the source article at Rubber and Plastics News

Central Europe slowdown impact Nokian results

Nokia, Finland – Nokian Tyres plc has reported a 12.5% year-on-year decline in first half operating profit at €148 million, on 0.3% lower sales of €763 million.

The Finnish tire maker linked the decline in sales to weak car and tire sectors in Europe, which offset gains in the heavy tire segment during the first six months of the year.

“The competitive landscape in the Central European replacement car tire market is tight due to weakness in the OE segment, as there is a high supply of…

Read the source article at European Rubber Journal

NR production declines as demand grows

Kuala Lumpur – Global production of natural rubber (NR) fell 6.5% year-on-year to 4.93 million tonnes in the first five months of 2019, according to the latest figures released by the Association of Natural Rubber Producing Countries (ANRPC).

World NR consumption for the five months to end of May rose 0.9% to 5.789 million tonnes, creating a shortfall of just under 860,000 tonnes, ANRPC announced in a 20 Aug statement.

Read the source article at European Rubber Journal

Simple Tire named one of fastest growing companies by Inc Magazine

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SimpleTire has been named one of the fastest growing companies —and the fastest growing automotive company— in America by Inc. Magazine.

“We’re honored to again be recognized as one of the fastest-growing private companies in America and are truly grateful for everyone’s continued trust in SimpleTire,” said CEO Andy Chalofsky. “Our sustained growth is a testament to the team we’ve assembled and the outstanding support we receive from our suppliers, partners and customers.

Read the source article at Traction News

Shifting expectations drive off-road innovation

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It’s no secret that consumer preferences are evolving, and their expectations for companies, brands and products are higher than ever.

This is increasingly true in the tire industry, as more consumers seek tires that meet multiple performance needs without tradeoffs. … 

…As the off-road consumer tire segment continues to grow, function is only one part of the equation. Aesthetics also matter.

Read the source article at Tire Business

Canada Targets Interprovincial Trade Barriers

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OTTAWA – Efforts are escalating to reduce regulatory trade barriers between the 13 provinces and territories of Canada that can restrict sales of automobiles, especially trucks, while hindering the growth of auto-sector companies wanting to expand across the country.

Provincial and territorial premiers (heads of government) in July were debating their response to a Canada Free Trade Agreement (CFTA) struck between the federal government and the governments of Ontario, Quebec, Nova Scotia, New Brunswick, Manitoba, British Columbia, Prince Edward Island, Saskatchewan, Alberta, Newfoundland & Labrador, the Northwest Territories, Yukon and Nunavut.

 

Read the source article at WardsAuto

Bridgestone downgrades fiscal forecast after 1st-half declines

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TOKYO — Bridgestone Corp. has revised downward its earnings and sales forecasts for the full fiscal year after reporting a 20.6% drop in first-half operating income along with lower sales.

Read the source article at Tire Business

Yokohama H1 earnings drop on flat sales

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Tokyo — Yokohama Rubber Co. Ltd.’s operating and net income fell during the six months ended 30 June due to increased manufacturing and logistics costs and the negative effects of lower unit sales volume.

Sales revenue grew 0.5% during the period as higher revenue in the firm’s industrial rubber products and ATG off-road tire unit offset lower revenue in the tire business unit, Yokohama reported 8 Aug.

Read the source article at European Rubber Journal