Michelin Says Stop Buying Tires Early

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When do you change the tires on your car? Although the legal minimum is 1.6 mm of tread, many experts advise replacing rubber at around 3.0 mm. This is because tires are generally believed to perform at their best with lots of tread — but now Michelin has taken the unusual step of warning consumers that this is wrong and swapping tires early is pointless.

The tire manufacturer has hit out at the common belief that tires become less efficient as they wear, explaining that its premium rubber performs better with 1.6 mm of tread than some budget brands with full tread. It also says that tires become more fuel efficient as they wear and rolling resistance decreases, meaning drivers could be using more fuel by changing early.

If everyone in the EU changed their tires at 3.0 mm rather than 1.6 mm, they’d spend €6.9 billion (almost $7.7B) a year in unnecessary tire purchases and additional fuel consumption says Michelin. It adds that it would result in 128 million additional tires being used a year in Europe — which would cause nine million tons of additional CO2 emissions every year.

Read the source article at Motor1.com

Two Tire Distributors With 20% Upside

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Summary

Both Goodyear and Cooper Tire have had to offset declining revenues by increasing profitability. But the stage is set for this to change.

The tire market is expected to grow at a faster pace than previously seen due to positive consumer trends.

Both tire companies are well positioned to take advantage of these industry tailwinds and should see their top line begin to grow in 2017.

Goodyear Tracking Its Fundamental Value

In July of last year, Goodyear Tire & Rubber (NYSE:GT) was originally one of our 10 most undervalued stocks on the Nasdaq when shares were trading at $26.50 and had a finbox.io fair value estimate of $33.50.

The stock has since jumped 35% and is now trading at nearly $36 per share while finbox.io’s fair value estimate has also risen to roughly $44 per share as illustrated below.

Read the source article at Stock Market Insights

Goodyear positioned to benefit from industry trends

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Trends in the global tire industry play to the strengths of The Goodyear Tire & Rubber Company and its strategy to drive profitable growth.

“The accelerating shift to high-value-added tires for both consumer vehicles and commercial trucks is the main product trend shaping the future of the tire industry,” Chairman, Chief Executive Officer and President Richard J. Kramer said at the company’s recent annual shareholder meeting.

Read the source article at Traction News

Industry Trends May Positively Impact Goodyear

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Global trends within the tire industry play to Goodyear Tire & Rubber Co.’s strengths, the tiremaker said during a recent shareholder’s meeting.

“The accelerating shift to high-value-added tires for both consumer vehicles and commercial trucks is the main product trend shaping the future of the tire industry,” said Rich Kramer, CEO and president of Goodyear.

Read the source article at Tire Review

What to expect at the ‘Scrap to Profit’ conference

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Innovation to drive new and improved scrap tire markets is a key theme for the 7th Scrap to Profit Conference scheduled for October 25-26, 2017 at The Inn at Opryland Hotel in Nashville, Tennessee.

Topics to be discussed will be non-commercial and include market discussions of tire derived fuel, civil engineering, and ground rubber markets. Also, research and education needs for new markets and recent innovations in scrap tire uses will be addressed.

Read the source article at Traction News

OTR: Check out the tires BKT unveiled at CONEXPO

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Balkrishna Industries Ltd. (BKT) unveiled new tires in four of their more productive tire lines recently. Three new tires were announced for the ATV/UTV market and are the W207, Bog Max, and Sierra Max. The heavy industry market will see the addition of the Earth Max SR 35.

BKT’s Earth Max industrial tire.

Read the source article at Traction News

Pirelli continues splitting industrial and consumer tire lines

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In parallel with presenting its full-year 2016 results, Pirelli has revealed further details of its complex ownership structure and how it is splitting its consumer and industrial tyre business into two separate entities.

The latest news is that, as of March 2017, TP Industrial holding (which owns the newly renamed PTG, which was called Pirelli industrial until recently – more on that later) has been separated out from Pirelli’s consumer tyre business. In practice this means the assignment of TP Industrial holding to Marco Polo, Pirelli’s sole shareholder. According to Pirelli, the assignment will “ensure that Pirelli and TP Industrial can pursue their own independent paths to growth and independently developed strategies”.

Another key development is the 600 million euro refinancing of PTG with a 3 year duration (which may be extended for two additional one-year terms). This new refinancing deal has reportedly been agreed and signed with major global banks in a bid to ensure Pirelli Industrial’s financial independence. Around 50 per cent of PTG’s refinancing will be used to repay the debt against Pirelli, accelerating its deleveraging process.

Put all this together and we can now see that both Pirelli units remain owned by Marco Polo. However, the industrial and consumer units are truly independent in legal terms. Marco Polo is owned by CNRC/ChemChina (which holds 65 per cent), Camfin (which holds 22.4 per cent) and Long Term Investment (which holds 12.6 per cent). See diagram one for details of how Pirelli’s consumer and industrial operations have been split during March 2017.

Read the source article at Tyrepress

The US Farm Tire Market 2017, Rising Demand of Wide-Section Tires and Growing Demand of Eco-Friendly Tires

The report “The US Farm Tire Market: Industry Analysis & Outlook (2017-2021)” analyzes the development of this market. The major trends, growth drivers as well as issues being faced by the market are discussed in detail in this report. The four major players: Compagnie Générale des Établissements Michelin SCA, Goodyear Tire & Rubber Company, Inc., Yokohama Rubber Co., Ltd. and Titan International, Inc., are being profiled along with their key financials and strategies for growth. The report contains a comprehensive analysis of the US farm tire market, with the focus on different farm tire segments.

Read the source article at SBWire

Here are Pirelli’s new OTR, truck and ag tire lines

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Pirelli has unveiled its new truck, agricultural and off-the-road tire lines at the Mid-American Trucking Show in Kentucky.

Pirelli announced last year it planned to enter the commercial truck tire market and gave the industry its first glimpse at their initial range at MATS, the world’s largest annual heavy duty trucking show. Here’s everything Pirelli has told us about their North American range.

  • PENTATHLON D — a premium long haul drive tire
  • G:85 SERIES FOR ON/OFF ROAD
  • FH:01 MOTOR COACH
  • FORMULA DRIVER II ALL POSITION RIB

Read the source article at Traction News

LMC analyst predicts a “more even” global LV tire market in 2017

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Guangzhou, China – The world is looking at more even growth in light vehicle tire sales across regions in 2017, said Robert Simmons, head of rubber and tire research at UK’s agribusiness consultancy LMC International.

According to Simmons’ speech at the 2017 China Rubber Conference held in Guangzhou last week, LV tire sales are expected to increase by 3% globally this year, with India overtaking the Middle East and China as the fastest growing market at an over 8% year-on-year rate.

Read the source article at European Rubber Journal