Kumho opens credit facility worth $151M
NORWALK, Conn.—Kumho Tire U.S.A. Inc. has opened a $151 million asset-based credit facility for working capital needs, according to GE Capital, Corporate Finance, the administrative agent for the facility.
Norwalk-based GE Capital Markets served as co-lead arranger. Rancho Cucamonga, Calif.-based Kumho Tire U.S.A. is a subsidiary of South Korean tire maker Kumho Tire Co. Inc.
“GE Capital has served Kumho since 2006, and they are extremely knowledgeable about our business and the automotive marketplace at large,” said J. B. Kim, president and CEO of Kumho Tire U.S.A., in a statement released by GE Capital.
GE Capital, Corporate Finance is a provider of asset-based, cash-flow and structured loans and leases for mid-size and large U.S. businesses for working capital, growth, acquisitions, turnarounds and balance sheet optimization.
TIA names Hall of Fame inductees
BOWIE, Md.—The Tire Industry Association (TIA) will induct John Collins, owner of American Crane Inc. in Garner, Iowa, and John Kelsey, owner and president of Kelsey Tire Inc. in Camdenton, Mo., into the 2009 Tire Industry Hall of Fame Nov. 2 during the Specialty Equipment Market Association (SEMA) Show in Las Vegas.
Mr. Kelsey has spent 40 years in the tire industry as the owner and president of Kelsey Tire, the worldwide exclusive supplier/distributor of Goodyear antique and classic tires from the 1930s to 1970s.
Mr. Collins, who has invented several tools and equipment used in the tire industry, started his career 47 years ago as an OTR tire service man for Firestone Tire & Rubber Co. Since then, he spent several years working for Iowa Mold Tooling Co. Inc., where he started the company's OTR tire equipment division, and he founded two companies, Collins Equipment and American Crane.
Four other members of the tire industry also will be inducted into the hall of fame as “historical contributors,” TIA said. They are: Charles Seiberling, co-founder of Goodyear; Harvey Firestone Jr., former president, CEO and chairman of the former Firestone company; Tom Pumpelly, founder of National Tire Warehouse Inc.; and Robert Ewing, founder of Tire America.
Michelin to offer firms loans
GREENVILLE, S.C.—Michelin North America Inc. has begun accepting applications for low-interest business loans at its Michelin Development Upstate office, which will serve as the hub for the company's newly implemented economic development program.
Through the office, which is located at the NEXT Innovation Center near downtown Greenville, Michelin said it will provide funding and business expertise for socially and economically disadvantaged small- and medium-sized businesses based in South Carolina.
Michelin tapped Carolina First as its banking partner for the program, which begins with an initial funding amount of $1 million from the tire maker. Carolina First will work with the Michelin Development Upstate Steering Committee, a group of area business and civic leaders, to review applications for the loan program.
Applications that are approved by the committee will go to Carolina First for their financial due diligence, Michelin said. Loans for $10,000 or more will be available and will have up to five-year payment terms.
TIA, TRIB offer retread brochure
PACIFIC GROVE, Calif.—The Tire Industry Association (TIA) and the Tire Retread & Repair Information Bureau (TRIB) have produced an updated 16-page, full-color brochure titled “Understanding Retreading,” to improve the public's knowledge of the retreading process.
The brochure touts how retreaded tires impact the environment and the economy by reducing tire life cycle costs and minimizing the number of tires going into the solid waste stream. Chapters include: “Why Retread,” “Are Retreads Safe,” “If You Want to be Green,” and all six steps of the retreading process with photos.
TRIB said the brochure can be a useful resource for trucking fleets in the private and public sectors, as well as others with an interest in retreading.
Copies of the brochure are available for purchase upon request to [email protected], or by calling (831) 649-6030. For quantity prices, contact [email protected]
Car care month tool kit available
BETHESDA, Md.—The Car Care Council is offering a new Fall Car Care Month Toolkit for aftermarket companies and organizations wanting to participate in Fall Car Care Month in October.
The kit is available at www.carcareindustry.com.
“With so many different ways to celebrate Fall Car Care Month, it doesn't need to take more than a few minutes to get involved,” said Rich White, the council's executive director.
The Web site offers three levels of involvement in the event as good, better and best options for participation.
The site also contains printable materials, downloadable images and ordering information for “Be Car Care Aware” point-of-sale kits, brochures, gear and Car Care Guides in English, Spanish or French.
Pep Boys' 2nd qtr. earnings soar
PHILADELPHIA—Pep Boys—Manny, Moe & Jack's earnings surged during the second quarter and first half, despite a dip in sales for the period ended Aug. 1.
The automotive parts and service chain posted a 48-percent jump in net earnings to $7.7 million as sales slipped 2.2 percent to $488.9 million for the second quarter, compared with the year-ago period. Auto service center revenues increased 2.3 percent while retail sales fell 6 percent.
For the first half, Pep Boys' net earnings grew by 84.2 percent to $18.6 million as revenues dipped 1.27 percent to $985.4 million, compared with the first half of 2008. The results included a $6.2 million gain resulting from bond repurchases.
The company attributed its earnings improvement to service center revenue growth, improved gross margin rates and tight spending control.
Couple breaks mileage record
AKRON—Australian drivers Helen and John Taylor recently broke the “48 Contiguous U.S. States Fuel Economy” Guinness World Record, driving a car fitted with Goodyear's Assurance Fuel Max tires.
The couple previously set the record in 2008 at 58.82 miles per gallon, driving 9,419 miles in a 2009 Volkswagen Jetta TDI powered with Shell ultra-low sulfur diesel fuel. Their new record, which was set using the same car, fuel and driving route, stands at an average of 67.9 mpg.
According to Goodyear, the pair began their trip July 28 in Sterling, Va., and traveled in a counter-clockwise route that included 14 official check-in and refueling stops across the country. They crossed the finish line at a Virginia Tire & Auto retail outlet in Ashburn, Va.
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