BFS seeks concessions in Mexico
MEXICO CITY-Bridgestone/Firestone Inc.'s Mexican subsidiary hopes to reach an agreement soon on concessions with unions representing more than 1,000 workers at its Cuernavaca and Mexico City plants.
Negotiations between the unions and company have advanced at a good pace since there is a very good disposition on the part of the union to reach an agreement, said Jorge Gonzalez, president of Bridgestone/Firestone de Mexico S.A. de C.V. The talks started in June.
The firm wants wage and benefit concessions, saying it pays workers about $2 to $6 per hour more than other industries do.
Bank eyes credit line for Michelin
LONDON-The European Bank for Reconstruction and Development is considering providing a $30 million line of credit to Group Michelin for the development of the tire company's Romanian operations.
The EBRD's board was expected to discuss the proposed funding in early September, according to the bank's Web site. Michelin recently bought two tire plants, a retreading unit and distribution centers in the country from Romania's Tofan Grup in a deal worth around $85 million.
Pacific Dunlop, Goodyear may deal
MELBOURNE, Australia-Pacific Dunlop Ltd. and Goodyear have struck a deal that effectively will allow the Australian company to sell its 50-percent stake in their financially struggling South Pacific Tyres Ltd. joint venture to Goodyear during a 12-month period in 2005-2006.
A non-binding memorandum of understanding between the companies-subject to approval by Goodyear's board-limits Pacific Dunlop's investment exposure in South Pacific Tyres and calls for significant manufacturing changes to bring it back into the black, the firms said. For the year ended June 30, South Pacific Tyres experienced a $16 million pre-tax loss on lower sales.