2020 has been a year of unintended consequences, no matter where you look. Kids were suddenly doing their learning online, many of us began working from home, and thousands had to impromptu figure out how to interior-design the backdrop behind their computer monitor, as every virtual meeting became a peek into someone’s personal world. The car industry has seen some huge changes, as well. With the initial lockdowns, sales didn’t just spiral, they crashed.
Bridgestone Americas, Inc.‘s OTR plant in Bloomington, Illinois, is celebrating 55 years of operations this year.
The Bloomington Tire Plant began manufacturing tires in 1965 and today employs 450 people, many of whom are the second generation of their families to work in the plant, Bridgestone says. Currently, three employees are sons of employees who worked at the Bloomington Plant in 1965.
The 1950s police drama “Dragnet” inspired several catch phrases including “The story you are about to see is true”, “We were working the day watch”, and my personal favourite “Just the facts, ma’am”. Apparently, Sergeant Joe Friday, a fictional character created and portrayed by Jack Webb, never actually said “Just the facts, ma’am” but somehow it stuck. What is sticking in my mind these days are important facts related to winter tire usage in Canada from TRAC’s recently released 2020 Canadian Consumer Winter Tire Study, and supported by other studies from Traffic Injury Research Foundation (TIRF) and Manitoba Public Insurance. In keeping with the Dragnet theme, “The facts you are about to read are true”:
Goodyear- and Dunlop-brand consumer tire prices are set to increase on Dec. 1 in the U.S. Goodyear Tire & Rubber Co. says prices will go up by up to 5%. “These increases are in response to changing market dynamics in the industry and reflect the strong value of the Goodyear brands,” the company said.
MILAN, Nov 11 (Reuters) – Italian tyre-maker Pirelli on Wednesday lowered its margin forecast for this year, citing continuing uncertainty in light of the second wave of the COVID-19 pandemic.
The manufacturer of tyres for Formula One and high-end carmakers such as BMW and Audi said the 2020 market outlook had improved in the North America and Asia-Pacific regions.
“But the outlook (is) cautious for Europe because of recent anti-COVID measures following the resurgence of the pandemic,” it said in a statement.
The group guided for a 2020 full-year margin on its adjusted earnings before interest and tax (EBIT) of 11.5-12%, against a twice-trimmed previous forecast of 12-13%, to account for the impact of exchange rates, raw materials and other costs.
Manitoba Public Insurance analyzed collision claims over a 6-year period (insurance years 2011-12 to 2017-18). The claim frequency was measured by comparing claim frequency before and after a winter tire purchase for 111,872 vehicles. Of those vehicles, there were 13,925 winter-month claims occurring before winter tires were installed and 9,802 winter-month claims occurring after winter tires were installed, stated the report.
Based on analysis of winter month claims (November to March), winter tire use is estimated to reduce collision claim frequency by 6.3 per cent.
The analysis also concluded that in the instance of a collision, damage severity was 5.7 per cent lower for the vehicle equipped with winter tires, compared to the vehicle which did not have winter tires. The lower severity for claims with winter tires was consistent for both single and multiple vehicle collisions.
The Company notes that many end markets, including automotive, tires and construction, experienced strong demand recovery in the third quarter after weak demand during the second quarter due to the COVID-19 pandemic. Third quarter volumes in the Performance Plastics, Synthetic Rubber and Latex Binders segments were similar to prior year. In addition, margins across most segments were higher than prior year.
The Tire Industry Association‘s Roy Littlefield III, CEO, and Roy Littlefield IV, director of government affairs, updated TIA members on key legislative issues that the organization is following for its members during Monday’s Tire Industry Honors Ceremony.
Outlook for 2020: in a still highly uncertain environment, and taking into account the recent change in tire demand, Passenger car and Light truck tire markets are expected to decline by 13% to 15% over the year, Truck tire markets by between 12% and 14% and the Specialty markets by 15% to 19%. With these new forecasts and the cost reductions linked to the circumstances, the Group is revising its guidance for 2020 upwards, with segment operating income in excess of €1.6 billion at constant exchange rates and structural free cash flow* in excess of €1.2 billion, barring any new systemic effect** from Covid-19.