Despite a 36.3 per cent increase in operating income to RMB 2.2 billion (£249.4 million) in the first quarter of 2017, Triangle Tire reports that its year-on-year net profit declined 2.6 per cent in the first three months of the year to RMB 156.9 million (£17.8 million).
SHANGHAI — Chinese government-owned auto giants such as SAIC Motor Corp. and Dongfeng Motor Group Co. may see billions of dollars in profits evaporate if the government lifts protectionist measures and lets foreign companies operate without a local partner.
China requires overseas carmakers such as General Motors, Toyota Motor Corp. and Volkswagen AG to form joint ventures with locals in order to sell their brands in the world’s biggest market. The policy enacted two decades ago capped foreign investment at 50 percent, helping local brands develop manufacturing expertise while still profiting from sales of foreign marques.
Those alliances seem to be working for domestic automakers, which earned 67 billion yuan ($9.7 billion) with their partners in 2014, according to the latest China Association of Automobile Manufacturers statistics. Yet the government may relax the restriction as it tries to make state-run businesses more efficient and to respond to changes in trade policy being pushed by U.S. President Donald Trump.
“Automakers that aren’t competent enough would be destroyed by the policy change,” said Cui Dongshu, secretary general of the China Passenger Car Association. “Rising competition from not only the foreign joint ventures but also from homegrown makers has been weighing on the weak performers.”
The prospect for lifting the restrictions comes as carmakers meet in Shanghai this week for Asia’s biggest auto show. Ford Motor Co. and Hyundai Motor Co. are among the other foreign carmakers displaying models that compete with those produced by local partners.
Less than half the record 23.9 million cars and light trucks sold in China last year were local brands. Market share for Chinese-brand cars has stayed fairly constant, reaching 43 percent last year from 41 percent a decade ago, according to the state-backed manufacturers association.
The global automotive rubber moulded components sales grew from 65 million during the 2008-09 recession to over 89 million in 2015, with a spike of over 19% during the past seven years. In light of the growing demand for fuel-efficient and less polluting vehicles, the market for lightweight automotive components of higher durability is on the rise. Further, with chemical companies such as Chem-Trend coming up with better release agents and moulding process aids, the market for automotive rubber moulded components is expected to touch USD 45.16 billion by 2021. Technological advancements have been the major trigger for this growth. Innovations such as Ford’s eco-friendly rubber parts using soy oil and research labs trying to come up with better and durable rubber materials like EPDM are expected to drive the market at a CAGR of 6.26% by till 2022.
TOKYO — Yokohama Rubber Co. Ltd. is planning to launch a line of Alliance-branded passenger tires in Europe in a move designed to compete with other major tire makers’ associate brands.
For Jim Cramer, Thursday’s big bank earnings reports could not be more important to this ailing market. For over 36 years, the stock market has edged up, resulting in overall higher prices and an eight-year streak of bullish sentiment. “But every big move, every move that had really any impact, always had the banks as one of the major leadership groups,” the “Mad Money” host said.
The monthly bulletin of Association of Natural Rubber Producing Countries (ANRPC), Natural Rubber Trends & Statistics, March 2017 is now available for our subscribers. During the first quarter of 2017, ANRPC member countries are estimated to have produced 2.499 million tonnes of natural rubber (NR), up 2.0% from the same period a year ago. Consumption […]
The post ANRPC Releases Natural Rubber Trends & Statistics March 2017 appeared first on Global Rubber Markets.
Automakers sold 1.56 million new cars and trucks in March, a 1.6% decline compared with the same month a year ago. U.S. auto industry sales fell short of expectations in March as car sales continued to plummet, raising concerns about rising incentives and bloated inventory even though the pace of new car sales remains robust from a historical standpoint. Automakers sold 1.56 million new cars and trucks in March, a 1.6% decline compared with the same month a year ago.
Yokohama Tire Corp. has rolled out a new ultra high performance tire for its Advan line –the Advan A052.
Designed for sports car, track day and race enthusiasts, the A052 offers extreme grip for street and track use.
The tire features an all-new asymmetric tread pattern and special compound derived from Yokohama’s racing heritage, the tiremaker said. A stable outer compound rib with a notched micro groove helps with enhanced heat dissipation.
Pirelli Introduces “66” Sales Promotion on NIGHT DRAGON™ or MT 66 ROUTE™ Model Motorcycle Tires Today, Pirelli unveiled a special, limited-time promotion that offers motorcyclists the chance to save big when purchasing a set of street or road racing tires from participating dealers across the nation. Riders can score a $66 prepaid card when purchasing a set (a front …
Giti Tire has released details of the six new Giti branded patterns that will be launched at CV Show 2017 (Birmingham NEC, 25-27 April). On show at stand 4G20 will be the GDR655 combi-road drive in 22.5”; the GTL919 long-haul trailer in 17.5”, 19.5”, and 22.5”; the GDR638 regional drive in 17.5” and 19.5”; the GT867 all-position urban in 22.5”; and the GAM837 all-position and GAM851 trailer mixed service patterns in 22.5”.
The manufacturer said these models have been carefully selected to support its growing OEM presence throughout Europe or to target specific aftermarket sectors where growth potential has been identified. They each carry either the three-peak mountain snowflake (3PMSF) or M&S marking.