Detroit’s near future based on crossovers, SUVs, not EVs, production plans show

DETROIT — General Motors Co. and Ford Motor Co. have widely touted their commitment to emission-free electric vehicles, but their production plans show a growing reliance on ever-larger gas-powered vehicles. The two biggest U.S. automakers will make more than 5 million SUVs and pickup trucks in 2026, but only about 320,000 electric vehicles, according to detailed production plans for North America seen by Reuters.

Read the source article at Front Page

The impact of Coronavirus (COVID-19) on the automotive industry

The outbreak of the Novel Coronavirus (COVID-19), which originated in Wuhan, China in end-December 2019, is fast spreading its tentacles across the world and is having a major impact on all aspects of society, including the automotive industry. All through January and February, automakers and their suppliers have been scrambling to keep vehicle assembly lines humming but March has seen the industry take concerted action, in sync with government advisories, to keep its personnel safe.

Read the source article at Latest Car News & Reviews

ARPM outlook for 2020: Steady, slowing in auto

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INDIANAPOLIS—”Steady with a chance of slowing.” That’s the forecast for 2020 for rubber product manufacturers, as determined by the State of the Rubber Industry Study, an annual report compiled by the Association of Rubber Products Manufacturers.

Read the source article at Rubber and Plastics News

NR growth outlook falling on coronavirus-induced demand drop

KUALA LUMPUR — The growth in demand for and production of natural rubber is slipping, prompting the Association of Natural Rubber Producing Countries (ANRPC) to revise downward its 2020 global outlook for natural rubber. The association said it expects NR production to grow by 2.7% this year to 14.2 million metric tons, down from the […]

Read the source article at Global Rubber Markets News

High turnover may be new norm in industry

You’re not alone if you feel like every time you get a new hire trained, he or she leaves the business. It is a problem echoing across the U.S. retail tire industry.

And it may be the “new norm,” according to one expert who studies hiring trends in the industry.

Low unemployment — 3.6% in January, according to the U.S. Bureau of Labor Statistics (BLS) — has changed the identity of the entry-level workforce.

 

 

Read the source article at Tire Business

German rubber industry braces for ‘zero growth’ after 2019 decline

Frankfurt, Germany –Germany’s rubber industry is set for zero-growth in 2020, after a 4.2% year-on-year decline to €11 billion in 2019, the WDK has forecast.

Both the tire industry and technical rubber segment posted a decrease in sales for last year, according to the German rubber industry association.

Tire deliveries fell 4.4% to €4.5 billion and technical rubber sales dropped 4% to €6.4 billion, said a WdK industry survey issued 4 March.

Read the source article at European Rubber Journal

As plants in Wuhan reopen, world’s automakers worry about disruptions

BEIJING — Automakers across the world face the possibility of extended supply chain disruptions as factories in China stutter back to life after closures due to the coronavirus outbreak. The car industry is especially exposed as Wuhan — the epicenter of the outbreak — is known as one of China’s ‘Detroits’, accounting for nearly 10 percent of vehicles made in the country and home to hundreds of parts suppliers.

Read the source article at Front Page

Tire market to experience significant change with move toward autonomous vehicles

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A new report from Smithers, The Impact of Autonomous Vehicles in Tires to 2029, calls for the automotive industry to shift from selling and servicing vehicles to a mobility industry that offers transportation solutions for people and goods. Electrification, autonomous vehicle technology and shared mobility are key to this shift as is the evolution of tire development.

There are significant hurdles to be overcome before full AVs can be widely adopted. These vehicles will make up a relatively small part of new vehicle sales, and an even smaller part of the global vehicle parc by 2029. Small shuttles, delivery vans and truck platooning are possible exceptions. In relation, the number of tires supplied for AV vehicles by 2029 will be small and predominately OE. These units are forecast to reach around 389 million (AV PC /LT/LCV + T&B) at a value of over $47 billion by 2029, reaching about 15% of the predicted PC/LT/LCV + T&B tire market volume in 2029.

AVs and tires types

Debate exits over whether AVs will advance the use of extended mobility tires and if so, which option – run-flat or selfsealing – will be used. Smithers conducted a survey that revealed mixed expectations from industry respondents. A significant number believe that more careful tire use by AVs will reduce failure and decrease the need for extended mobility solutions. While not essential for AVs, non-pneumatic tires are puncture proof and offer extended mobility and less maintenance. They may benefit AVs used in urban environments, especially autonomous taxi fleets.

A collaboration between GM and Michelin is planning to begin commercial sales of an electric car with an airless tire (Uptis which is a development of Michelin’s Tweel) by 2024 and with a fully autonomous version to follow. If successful, these moves will eventually have a major impact on tire technology, including materials, construction methods and equipment and after-sales service.

Regional trends in AV uptake

The penetration of EV and AV technologies will vary significantly between regions as political considerations play a strong role in introducing the necessary legislation. The relatively light regulatory environment in some states and the entrepreneurial culture in the US is expected to help. AV uptake in Europe may be hindered by the region’s strong regulatory nature. Customer acceptance varies greatly by geographical location and age: Markets such as China and India where car ownership is growing show more enthusiasm about using self-driving cars. Similarly, Millennials are more likely to embrace new technologies, including connected cars to fully autonomous vehicles.

The Smithers survey found that uptake of level 4–5 AV for PC/LT/LCV was expected to be North America>Europe>Asia Pacific. For trucks and buses, the order was predicted as Europe>North America>Asia Pacific. The higher rating for Europe T&B was due to the region’s interest in platooning. While all propulsion systems can be used, most AVs are expected to be electric. Not only do EVs provide significant synergies to AV, environmental concerns are leading to their adoption irrespective of AVs.

Tire sales for AVs to 2029

Because of the relatively small vehicle numbers, tires sales for AVs are expected to be a small part of the overall tire market by 2029 with OE sales dominating over replacement sales. Vehicle sectors in this report are differentiated into passenger car/LT/LCVs and T&B. Smithers was unable to quantify the passenger car and LT/LCV separately, but believe that LT/LCVs will be a relatively small part of the total. These are further differentiated into OE and replacement markets. The difference between OE and replacement markets is most pronounced in the PC/LT/LCVs tire sectors. See Figures E1 and E2.

 

 

Most survey respondents think the overall AV market (PC/LT/LCV + T&B level 2–5) will have most impact on AV tire materials/components and AV tire retail and AV tire marketing over the next 10 years. They rated the impact on these sectors as very high or high. AV tire materials/components is seen as the tire market sector that experiences the most innovation and change and generally moves forward faster than the other tire market sectors. 

To learn more about this report, download the brochure at https://www.smithers.com/services/market-reports/transportation/impact-autonomous-vehicles-on-tires-to-2029.

Tire Technology Expo 2020: Official show report

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The 20th edition of Tire Technology Expo and Conference, which was staged at the Deutsche Messe, Hannover, Germany, February 25-27, 2020, once again welcomed visitors from across the global tire design, development and manufacturing communities, with more than 300 exhibitors presenting their latest innovations and solutions at the free-to-attend exhibition, while delegates at the neighbouring conference discussed the topics and themes set to shape the future of the tire industry.

Read the source article at Tire Technology International

European auto industry’s plans to cut costs and jobs – Reuters

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(Reuters) – Europe’s auto industry is facing a slowdown in demand for new cars, as well as disruption from the coronavirus epidemic and import tariffs between China and the United States. As a result, several companies have announced plans to cut costs and jobs. Here is a summary of the steps announced so far: Volkswagen said in March 2019 it would cut up to 7,000 positions and aim to deliver 5.9 billion euros ($6.7 billion) of annual savings at its core VW brand by 2023.

Read the source article at uk.reuters.com