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

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

Bridgestone downgrades fiscal forecast after 1st-half declines


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

Goodyear signals major restructuring plan in the US


Akron, Ohio – Goodyear Tire & Rubber is studying a plan to restructure its US operations in a bid to improve business competitiveness, according to chief financial officer Darren Wells.

“We are working on a significant restructuring plan to reduce low-value. high-cost capacity in the US,” Wells said in a 26 July conference call.*

The move will bring about savings “at least as high as the actions in Germany,” said Wells, referring to a reorganisation programme announced in Germany in March.

Read the source article at European Rubber Journal

Q&A: ContiTech focusing on cross-industrial rubber


In this Q&A interview, Dr Wolfram Herrmann, head of R&D materials at ContiTech AG, addresses challenges and opportunities facing the rubber products industry.

Read the source article at European Rubber Journal

Continental quarterly profit plunges 41% as supplier seeks deeper cost cuts


BERLIN — Continental is seeking deeper cost cuts after second-quarter net profit fell 41 percent, hit by lower vehicle demand in China and steep investments for electric and autonomous cars. “We are responding to the declining market by ensuring rigorous cost discipline and enhancing our competitiveness,” CEO Elmar Degenhart said in a statement. Net profit declined to 485 million euros ($543 million) while revenues were down 1 percent and came in at 11.26 billion euros.

Read the source article at Automotive News Europe

Michelin renews, expands its work with WWF France


The 2015-initiated collaboration between the Michelin Group and the French office of the World Wide Fund for Nature has been renewed for a further four years. The tyre maker will continue working with WWF France towards sustainability within the natural rubber market. In the coming four years, the partnership will further develop an existing pilot project in Indonesia and additionally open up the collaboration to include sustainable mobility and the protection of biodiversity.

Read the source article at Tyrepress

Continental cuts 2019 outlook citing expected fall in global vehicle production


FRANKFURT — Continental AG cut its 2019 outlook, citing expectations for a fall in global vehicle production and unexpected changes in consumer demand for some products.

The company also said that it may have to make provisions for warranty claims in the second half of the year, the amounts for which were not yet clear.

Sales for the year are now expected to be around 44 billion to 45 billion euros ($50.44 billion), down from a previous estimate of 45 billion to 47 billion euros, the supplier said.

Read the source article at Front Page

Whole Lotta Shaking Going on in Auto Industry


It’s already been an eventful year for the automotive industry. Let’s review some of the biggest trends and headlines we’ve seen so far and consider what the future might hold.

Shake-Ups and Industry Disruptors

We can’t discuss the industry in 2019 without mentioning tariffs, so let’s start there.

The U.S. and China have made a lot of noise by threatening to impose new or raise existing tariffs on automobiles. The potential of higher costs is affecting factories worldwide, and the situation is made more complex by the fact that many auto makers have plants in countries other than their home base (for example, GM builds cars in China; BMW in the U.S.; VW in Mexico).

Read the source article at WardsAuto