In response to the widespread economic crisis caused by the COVID-19 pandemic, the U.S. Tire Manufacturers Association (USTMA) has revised its February 2020 U.S. tire shipment projections to better reflect the impact of the pandemic on the tire manufacturing sector. This update is being shared in advance of the triannual forecast customarily conducted in July.
WASHINGTON — U.S. tire shipments could fall to their lowest levels in decades, a result of COVID-19 pandemic-induced lower demand, according to a shipments update from the U.S. Tire Manufacturers Association.
To better understand the overall impact and future state of the rubber industry, ARPM is conducting a weekly Rubber Industry Pulse Survey. This 8-question survey takes less than one minute for leaders to complete, but gives insights into how the rubber industry is faring so far – and what executives are anticipating for the future.
Beijing – China’s tire exports fell 11.3% year on year in the first quarter of 2020 to 102 million units, according to latest figures by General Administration of Customs.
Export value – presented in US dollars – for the quarter stood at $3 billion (€2.8 billion), representing a 13.2% drop year-on-year, the Chinese agency noted. Weight of such exports fell by 6.9% to 1.3 million tonnes.
London – Rubber industry associations in a number of EU states have set up a Covid-19 ‘crisis unit’ under the aegis of the European Tyre & Rubber Manufacturers’ Association (ETRMA).
The initiative, which involves SNCP (France), WDK (Germany), Consorcio del Caucho (Spain), Assogomma (Italy) and other industrial federations, is focused on information-sharing and interfacing with the European Commission.
It’s now been months since the health crisis emerged from Wuhan, China, first gripping a large swath of that country before moving overseas and creating what the U.S. Centers for Disease Control and Prevention said is the likelihood of a pandemic. The risk is still low in the U.S., despite reports of cases in several states and deaths now occurring on domestic soil.
Aftermarket shipments of truck and bus tires are projected to rise 2.1 percent this year over last to 19.3 million units, the USTMA said without offering any explanation for its forecast.
The existing reservation list for new Tesla Model 3 electric vehicles is more than 400,000 people long. Moody’s Investor Service is slashing its global vehicle sales forecast as the coronavirus outbreak reduces demand and disrupts automotive supply chains. The firm now expects global auto sales to slump 2.5% in 2020 instead of a 0.9% drop previously expected.
MILAN (Reuters) – Italian tiremaker Pirelli (PIRC.MI) will focus on its premium products and cost-cutting measures to drive a gradual increase in core profit margins over the next two years. Announcing its strategic plan after reporting annual results on Wednesday, the group said its margin on adjusted earnings before interest and tax (EBIT) would rise to between 18% and 19% through 2022, up from 17.2% last year.
Akron, Ohio — At first glance, the US consumer tire aftermarket displayed moderate strength last year, with replacement passenger and light truck tire shipments up 2.2% and 2.5%, respectively, over 2018.
What comes as a surprise, though, is that US-based tire manufacturers — despite billions of dollars of investment in new and expanded capacities over the past several years — did not seem to benefit from the aftermarket growth, according to Tire Business’ analysis of new market data.