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August 02, 2004 02:00 AM

News in Brief

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    TIA supports excise tax bills

    BOWIE, Md.-The Tire Industry Association (TIA) has lent its support to two House bills that include language to restructure how the Federal Excise Tax (FET) is calculated on truck tires.

    Proposals in the bills would change the current FET from a weight-based system to one based on the load-carrying capacity of the tire, TIA said. The association said its main focus was a concept that was revenue-neutral.

    The new FET would impose a 9.4-cent tax on radial truck tires for every 10 pounds of carrying capacity over 3,500 pounds. TIA said it still is concerned about the definition of bias-ply tires in the bills.

    TIA said there is a chance the new FET could be made permanent, instead of needing reauthorization every six years.

    Maxxis to supply GM in 2006

    SUWANEE, Ga.-General Motors Corp. has signed a supply agreement with Maxxis International Inc., pushing the Taiwanese tire maker into the full-size original equipment realm in North America.

    With the multi-year agreement, Maxxis will supply its Maxxis-brand light truck tire, size LT 225/75R16, to a GM vehicle in the third quarter of 2006.

    Taiwan-based Maxxis International-previously known as Cheng Shin Rubber Industrial-said the contract gives it increased recognition as a mainstream tire supplier in the global market.

    Maxxis already supplies tires to Shanghai General Motors in China.

    Cooper to make race tires in U.S.

    FINDLAY, Ohio-Cooper Tire & Rubber Co. said it plans to begin producing racing tires in the U.S. with an $11 million investment at a plant in Athens, Ga., that currently produces retread materials.

    The conversion to motorsports tires should begin immediately with developmental tire production at the Athens plant beginning in early 2005, the company said.

    Initial production will include the Avon Tech R-a street-legal radial manufactured by Cooper exclusively for the Tire Rack-and the Mickey Thompson DOT ET street radial sold through Cooper's Mickey Thompson subsidiary.

    A Cooper spokeswoman said the Athens plant will continue to produce some retread materials. Cooper's Melksham, United Kingdom plant-which had been the only internal facility producing racing tires-will continue to manufacture the products, she said.

    Kumho brings V710 tire back

    FONTANA, Calif.-Kumho Tire USA Inc. has put its ECSTA V710 competition tire back on the market after the tire maker voluntarily discontinued sales of it in April.

    Kumho said earlier this year it had discovered some inconsistent test results relating to tread splice and tread area durability.

    Consumers who had bought the V710 were given a replacement set of either ECSTA V700s or Victoracers free of charge plus a certificate for V710s when they returned to the market.

    The Fontana-based marketing arm of South Korea's Kumho Tire Co. Inc. conducted an investigation of the V710 and made modifications to the product and production methods.

    Cooper, Kumho raising tire prices

    AKRON-Cooper Tire & Rubber Co. and Kumho Tire USA Inc.are raising tire prices effective Oct. 1 to keep pace with rising costs.

    Cooper said its price increase, up to 5 percent, will vary by product line and applies to all customers.

    Kumho's price hikes range from 3-5 percent and affect the company's passenger, light truck and commercial truck tires.

    Specific increases will vary by tire model, Kumho said.

    TIA seeking Hall of Fame nominees

    BOWIE, Md.-The Tire Industry Association is accepting nominations for inductees to its 2004 Hall of Fame.

    Nominations, due Sept. 1, are open to individuals in the tire industry, including manufacturers, inventors, publishers, equipment suppliers, tire dealers and retreaders.

    Forms are available at www. tireindustry.org or by calling (301) 430-7280.

    Hall of Fame inductions will take place Nov. 2 during the Specialty Equipment Market Association (SEMA) show in Las Vegas.

    Criteria for inductees include considering how the individual has shaped the business of the tire industry; made a significant contribution to the welfare of the industry; been active in volunteer service at a national or local level; made a significant contribution in civic, cultural, educational or charitable endeavors; made a positive difference in the lives of fellow industry professionals; and been considered a leader by peers in the industry.

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    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

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