Goodyear raises prices up to 4
AKRON-Goodyear will raise tire prices up to 4 percent on all of its brands in various segments, effective May 1.
The increases apply to the tire maker's Goodyear, Dunlop, Kelly and associate brands. Goodyear cited rising raw materials and energy costs as reasons for the increase.
The following increases will be instituted: 2-4 percent on consumer tires; 2-3 percent on commercial tires; 2-4 percent on off-the-road tires; and 2.5 percent on farm tires.
Kumho pulls tire from market
FONTANA, Calif.-Kumho Tire U.S.A. is recalling about 1,400 ECSTA V710 Competition Tires from the market and is suspending its sale following ``inconsistent'' test results, the tire maker said.
The V710 was introduced to the market Jan. 1. The tire maker said the tires have not experienced any air loss failures, but the company discovered some ``inconsistent test results relating to tread splice and tread area durability.''
A Kumho spokesman said company officials hope to re-introduce the tire in about 60 days. ``They just want to do some more testing on it,'' he told Tire Business. He said most of the tires were sold through mail order/online marketer Tire Rack, which is working to recover the products. Kumho said it also carried out an investigation into the cause of the inconsistencies and made modifications to the product and production methods.
Kumho will replace tires collected from consumers with either Kumho ECSTA V700 or Victoracer tires for free. Customers who bought the tires must contact the dealership where they were purchased or call (800) 445-8646, ext. 342. Customers also will get a certificate for a free set of the modified V710 when it is sold again, the tire maker said.
Keegan joins Sumitomo board
AKRON-Goodyear Chairman and CEO Robert Keegan has been elected to Sumitomo Rubber Industries Ltd.'s board of directors, the tire maker said.
Mr. Keegan, 56, has been Goodyear's chairman since July 2003. He was named CEO in January 2003 and president in October 2000. Goodyear and Kobe, Japan-based Sumitomo have six joint venture businesses in North America, Europe and Japan. Each company also holds common stock in the other.
Pilot expands tire offerings
AKRON-Pilot Travel Centers L.L.C. plans to expand availability of commercial truck tires at its truck stops nationwide, starting with 30 locations by 2005.
Pilot, the nation's largest interstate travel center operation, will start its expanded service by stocking Michelin, BFGoodrich and Goodyear tires, according to Michelin North America Inc. and Goodyear.
Knoxville, Tenn.-based Pilot operates 260 locations in 37 states. The company has 13,000 employees and annual revenues of $5.5 billion. The company is a 50-50 joint venture owned by Pilot Corp. and Findlay, Ohio-based Marathon Ashland Petroleum L.L.C.
Goodyear signs outsourcing deal
AKRON-Goodyear Dunlop Tires Europe has signed a 10-year business transformation outsourcing agreement that is expected to save $60.6 million the first two years, the company said.
The agreement partners Goodyear's European affiliate company with IBM Corp. on a procurement-to-payment program for indirect supplies. Goodyear said the deal represents another step in the company's cost-cutting efforts as part of its turnaround plan.
Goodyear Dunlop will retain its core purchasing competencies, but 50 to 80 Goodyear Dunlop employees will be transferred to IBM Business Consulting Services Europe on a phased basis. The main savings will be achieved by leveraging IBM's procurement organization, which will negotiate on behalf of Goodyear Dunlop.
ATD fiscal sales up 4.9 percent
CHARLOTTE, N.C.-American Tire Distributors Inc. posted a 4.9-percent jump in consolidated net sales in fiscal 2003 that the company attributes to its focus on being a distributor instead of a retail operator.
Consolidated net sales climbed to $1.11 billion from $1.06 billion in fiscal 2002. In 2003, pre-tax income was $27.2 million, down from $62.7 million the year before. Excluding the fiscal 2002 gain on repurchase of Series D Senior Notes, the fiscal 2003 pre-tax income increased $14.2 million from 2002, the company said.