News from Notch Consulting, Inc.

March 7, 2013

TIA: Where is the fuel efficiency rule?

Filed under: Tires — Notch @ 2:00 am

From Rubber News comes word that the Tire Industry Association (TIA) has asked Sen. Barbara Mikulski, D-Md., to send a letter of inquiry to NHTSA (the National Highway Traffic Safety Administration) about the status of the pending consumer education program under the tire fuel efficiency labeling final rule. The final rule was published in March 2010 but failed include some crucial information, such as the label content and format, the tire fuel efficiency testing standard, and how the consumer eduction portion of the program would be developed and funded. TIA has presented itself as the logical third-party administrator of the consumer education part of the program, in light of TIA’s advocacy of a public-private partnership for implementing the program.

Analyst: West Europe tire capacity down by 38M units in last 5 years

Filed under: Tires — Notch @ 1:49 am

From Tyrepress (subscription required): DB Equity Research Automotive analyst Gaetan Toulemonde estimates that the tire industry in Western Europe has reduced its passenger car tire capacity by 38 million units over the last five years. This includes recent announcements from Goodyear and Bridgestone (in France and Italy, respectively), which total some 13 million units, as well as closures by Michelin, Continental and Pirelli in 2009, which removed 25 million units. According to Toulemonde, current tire demand in Western Europe totals 275 million units, including 65 million OEM and 200 million replacement. According to Toulemonde, this demand has remained stable over the last five years, but reduced local production has been offset by higher imports, primarily from China. According to the Deutsche Bank analyst, the average cost of producing a tyre in Western Europe is 8 euros – a high figure in comparison with other regions. (Note that Toulemonde is not including the central European countries of Poland, the Czech Republic, Romania and Serbia in these totals).

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