RICHMOND, British Columbia (Dec. 15, 2000) — Despite accumulating approximately $25 million in losses since its inception six years ago, the management of tire pressure monitor developer SmarTire Systems Inc. is optimistic that the recall-driven renewed interest in tire safety will expand the market for the company´s products.
``Since August, we have seen increased consumer demand and a major shift in attitude within the automotive industry in favor of tire monitoring technology,´´ said Robert Rudman, SmarTire´s president and chief executive officer, in a prepared statement.
``The marketplace has quickly matured and this represents a turning point for SmarTire. With the right technology, products and partners, it is our intention to . . . capitalize on this growing market opportunity,´´ Mr. Rudman said.
SmarTire´s latest quarterly loss — for the period ended Oct. 31 — was $1.34 million on sales of $177,305.
Among events SmarTire cites to support its optimism is passage recently by the U.S. Congress of the Transportation Recall Enhancement, Accountability and Documentation (TREAD) Act. Among its provisions, the TREAD Act calls for tire monitoring to be installed on all new vehicles as standard equipment by November 2003.
In addition, SmarTire said it has a strategic alliance with TRW Inc. to provide tire monitoring systems for the replacement and original equipment markets and also is preparing to finalize a joint development and supply agreement with Honeywell Inc.