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May 27, 1996 02:00 AM

KELLY TO MAKE TAG'S NEW PRIVATE BRAND

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    CUMBERLAND, Md.-Kelly-Springfield Tire Co. will produce a private label tire for the Tire Alliance Groupe, a buying group made up of six of North America's largest independent tire dealerships. The ``Embassy'' line will include high performance, broad line and metric auto tires and radial light truck radials and be sold through the TAG members' 425 outlets nationwide.

    The pact with Kelly comes on the heels of an agreement TAG signed with Continental General Tire to distribute eight proprietary lines of Continental-brand tires.

    House approves cut of 4.3-cent gas tax

    WASHINGTON-By a 301-108 vote, the House approved legislation May 21 to remove a 4.3-cent gasoline excise tax through the end of the year.

    The tax, which raised the total federal excise tax on motor fuel to 18.3 cents from 14 cents per gallon, was passed three years ago as part of the Clinton Administration's deficit-reduction budget package.

    The tire industry had protested the added tax, saying it set a bad precedent to earmark fuel taxes for anything other than highway construction and maintenance.

    The bill goes to the Senate, which may not act quickly on it because of partisan battles over raising the minimum wage.

    Twin Tires put to test in One Lap road rally

    MALVERN, Pa.-Twin Tire International Inc. is sponsoring a car equipped with its dual-tire and wheel system in the Car & Driver One Lap of America week-long road rally, beginning June 9.

    The 4,200-mile race features precision rally driving with competitive racing skills on 11 race tracks in the U.S.

    To demonstratethe Twin Tire system's runflat capabilities, the company said a 1989 Formula 350 Pontiac Trans Am will compete with one tire deflated during the entire race. The company claims its system allows vehicles to drive with a flat tire at normal highway speeds for an unlimited distance.

    Woosung to operate under new ownership

    ESSEN, Germany-Woosung Tire Corp., South Korea's third largest tire maker, changed hands after the creditors of its parent, Woosung Construction Group, chose Hanil Group, an industrial enterprise, as the new owner of Woosung and its 18 affiliates.

    The ownership change comes five months after Woosung Industries was forced to file for bankruptcy protection in the wake of claims against its construction arm resulting from the collapse of a shopping mall in Seoul, South Korea.

    The solvency problem left Woosung Tire unable to buy raw materials in January, which led to production shortages. These shortages were largely resolved in February, a spokesman said.

    J.D. Power partner is NTDRA keynoter

    WASHINGTON-Donald L. Keithley, a J.D. Power and Associates partner and author of ``The revolution in automotive retailing: A perspective of the new millennia,''will be the keynote speaker at the opening session of the National Tire Dealers & Retreaders Association's annual convention and trade show, Sept. 5-7 in Atlanta.

    Mr. Keithley's talk will focus on consumer trends, particularly in the automotive industry, and their impact on the independent tire dealer. He is in charge of dealer relations for Agoura Hills, Calif.-based J.D. Power, a marketing information firm.

    Court upholds decree on anti-striker older

    WASHINGTON-A federal appeals court on May 10 refused the government's request to reconsider its Feb. 2 decision overturning President Clinton's anti-striker replacement executive order.

    That order, issued March 8, 1995, barred any company that hires permanent replacements for legally striking workers from holding federal contracts worth $100,000 or more. Bridgestone/Firestone Inc., which hired 2,300 strikebreakers in January 1995, was singled out for condemnation when the administration's order was issued.

    In response, BFS sued the government and won the appeals court's Feb. 2 court decision.

    Culler and Fiedler head Goodyear N.A.

    AKRON-Goodyear announced Gene Culler, executive vice president, North American Tires, and Kelly-Springfield Tire Co. President Lee Fiedler will head the company's realigned North American tire operations beginning June 1.

    The move will allow Goodyear's North American operations to function as a more efficient and autonomous business unit ``with all the resources it needs to implement ambitious individual strategies for growth,'' according to the Akron-based company.

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