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TSE Industries - Millable polyurethane rubbers

Akrochem

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Automotive Industry Outlook Highlighted

11/4/2010 - Chicago, IL - According to a report published by Zacks Equity Research, "The auto industry is a highly concentrated one. About 10 global automakers account for over 77 percent of the production worldwide. In the first nine months of 2010, General Motors led with a 19 percent market share in the U.S., followed by Ford Motor Co. with a 16.7 percent market share, Toyota Motors Corp. with a 15.2 percent market share, Honda Motor Co. with a 10.6 percent market share, Chrysler-Fiat with a 9.5 percent market share and Nissan Motor Co. with a 7.8 percent market share. The recent economic crisis has provided an impetus to a massive structural change in the auto industry, setting the stage for growth over the next decade. Given the high barriers to entry and the need for scale economies (in operations, supply chain and marketing), the global auto industry landscape is expected to be ruled by global automakers and suppliers based in the six major auto markets, including China, India, Japan, Korea, Western Europe and the U.S. To remain competitive, automakers will need to design vehicles that will meet the requirements of consumers in both mature and emerging markets. Automakers will focus on more user-friendly and low-cost vehicles that are also the most advanced technologically. The automakers will continue to shift their production facilities from high-cost regions such as North America and the European Union to lower-cost regions such as China, India and South America. For example, greater China and South America together are projected to represent more than 50 percent of growth in global light vehicle production in the auto industry from 2008 to 2015. There are two underlying factors behind this location shift in the auto industry. The first is the cost factor. The cost of labor in emerging auto markets continues to be a fraction of that in the developed world. The second is the demand factor. Many low-cost regions, including the emerging auto markets, have high potential for growth. Thus, the shift in auto industry production facilities will lead to a localization of the manufacturing base that will bring down transportation costs. The emergence of trading blocs is also giving this process a push in the auto market. It is likely that over time there will be fewer car imports from outside a trade zone. Further, automakers have started to reduce the number of technological platforms with a greater diversity of models produced from each platform in order to remain cost competitive in the auto industry. For example, Honda, with its flexible common platform, has developed three dimensionally distinct versions of the Accord, allowing for designs where 60 percent of the components are common. Ford aims to build 680,000 vehicles per core global platform by 2015, up from the current level of 345,000 units. Higher fuel prices and concerns over global warming have pooled attention on the auto industry that either rely less on traditional fossil fuels or use renewable sources of less expensive energy. Thus, "green" alternatives such as fuel-efficient electric vehicles (EVs) and hybrids will attract consumers in the wealthier countries, while flex-fuels such as ethanol and natural gas will be highly sought after in the emerging auto markets where the local climate or resource base favors their usage by automakers over petroleum. Consequently, there will be a variety of powertrain technologies in the auto industry by the next decade. It is likely that "green" cars will represent up to a third of total global sales in developed auto markets and up to 20 percent in urban areas of emerging auto markets by 2020. Some of the "green" cars have already generated a huge response in the auto industry. These include the Ford Focus, GM Volt, Nissan Leaf, Toyota Prius and Daimler AG’s Smart ForTwo Micro EV. The role of governments must not be overlooked. Governments in all major countries have become active auto industry players. Their energy and environmental policies will be strongly responsible in molding the auto industry in the coming years. The "Big Three" Detroit automakers, GM, Ford and Chrysler, lost consumer confidence in 2009 after they were severely hit by the global economic crisis. The crisis also exposed the inherent problem with the Big Three’s product portfolio, which lacked up-to-date engineering and extensive research and development. Further, the majority of their sales comprised pickup trucks and SUVs rather than fuel-efficient vehicles such as the small cars that the consumers have started to prefer. In 2009, GM’s truck sales accounted for 54 percent of the cars and trucks sales, Ford’s 62 percent and Chrysler’s 73 percent. This skewed portfolio was further aggravated by the government’s push for fuel-efficient and environmentally-friendly small cars. Ford rallied better than its hometown rivals, with an early response to the shift in consumer preference towards small cars. In 2009, sales at Ford dropped 15 percent while sales at GM and Chrysler plunged 30 percent and 36 percent, respectively. However, with a recovery in the global market and restructuring of the product portfolio, the Detroit automakers, especially Ford and GM, bounced back at the end of 2009. In the first nine months of 2010, Ford’s sales went up 21 percent, while sales of GM and Chrysler grew 6 percent and 15 percent during the period, respectively. Ford focuses on its Ford, Lincoln and Mercury branded cars, shedding the Volvo cars, while GM concentrates on four core brands, including Chevrolet, Buick, GMC and Cadillac, withdrawing Saturn, Hummer, Pontiac and Saab. Further, Ford has decided to expand its luxury Lincoln line-up at the cost of its Mercury line-up, which will be phased out by the end of 2010. The company plans to launch as many as seven new Lincoln vehicles in the next four years, including a small car. Due to the restructuring of its product portfolio and a recovery in the North American automotive market, Ford delivered a $1.04 billion improvement in profit during the third quarter of 2010. The automaker has indicated it is strong and continues to focus on product development plans by providing a capital spending guidance of $4 billion for the full-year 2010. GM, on the other hand, will return to the stock market billboard through its initial public offering (IPO) of common stock, to be held on November 18, 2010. The IPO will raise about $10 billion for the company, which will be utilized mostly for repaying the U.S. government loans. With this, the company will succeed in shedding its government ownership to less than 50 percent. The Asian countries, especially China and India, are expected to account for 40 percent of growth in the auto industry over the next five to seven years. According to Global Insight, a U.S. based provider of economic and financial information, 14.7 percent of growth is expected to come from India and 8.3 percent from China by 2013 (compared with 2008 levels). The growth in these markets can be attributed to government incentives and a rapidly growing economy, boosting big-ticket purchases. Domestic automakers are likely to rule the key growth market of China as the government plans to consolidate the top 14 domestic automotive players into ten. These automakers would capture a share of more than 90 percent in the local market. The Chinese automakers have been struggling hard to enhance their global profile by upgrading their technology to meet the international standards. To this end, Beijing Automotive Industry Holding Group (BAIC) has purchased the intellectual property rights from GM’s Saab in order to develop its own brands and introduce new models. BAIC purchased the rights to certain powertrain, engine and gear-box technology for Saab's 9-5 and 9-3 sedans. In a similar move, Zhejiang Geely Holding Group bought Volvo cars from Ford in order to tap China's high-growth auto market by acquiring modern, innovative technologies from the Swedish brand to upgrade its car lineup. In December last year, Geely also signed up with Johnson Controls Inc. to be its global parts supplier. The Indian automakers are also sallying into international markets by introducing their innovative products that could meet consumer demand abroad. Tata Motors has revealed it will launch its European version of the small car, Nano Europa, in 2011, and a U.S. version of the same car by 2012. On the other hand, India’s utility vehicle maker Mahindra & Mahindra has announced launching TR20 and TR40 pickups in the U.S. that are more economical compared to other pickups sold in the country. Although automakers continue to focus on shifting their production facilities to new regions driven by cost and demand factors, developing the supplier networks remains one of the greatest challenges they face in the auto industry. Existing suppliers to automakers often lack the financial background to expand capacity in new markets. On the other hand, auto market suppliers are sensitive to technology transfers to local third parties, which may result in new and lower-cost competitors. Since 1999, more than 20 of the largest global auto parts suppliers have filed for bankruptcy. The financial condition of the majority of auto market suppliers continues to deteriorate, resulting from a historically weak demand and higher dependence on automakers. According to the Original Equipment Suppliers Association, 12 percent of the auto industry suppliers do not have sufficient working capital to support a 10 percent to 25 percent expansion in production. Thus, despite the government’s sizable investment in the automakers, it is likely that there will be auto market suppliers who are unable to restart operations due to working capital shortfalls even as automaker production resumes. Higher dependence on automakers makes the auto market suppliers vulnerable to several maladies, primarily pricing pressure and production cuts. Pricing pressure from automakers is constricting auto market suppliers’ margins. On the other hand, production cuts by automakers driven by frequent market adjustments are negatively affecting their operations. Some of the auto industry suppliers who have a high reliance on a few automakers such as General Motors, Ford, Chrysler and Volkswagen include American Axle and Manufacturing, ArvinMeritor, Goodyear Tire and Rubber, Magna International, Superior Industries, Tenneco Inc. and TRW Automotive. The shift in auto market consumer preferences towards high tech, fuel-efficient, environmentally-friendly vehicles, such as small cars/hybrids/EVs, is another issue. Auto market suppliers are expected to quickly adapt to the new technologies by investing in research and development, putting heavy capital burdens on them. The automakers also face significant challenges in transforming the existing powertrain technologies into the new versions, as far as marketability is concerned. They are adapting the internal combustion engines to alternative energy, including ethanol and bio-fuels. Ultimately, a time may come when they switch to the all-electric powertrain as their sole powertrain solution. However, the shift in powertrain solution technology needs to be supported by adequate charging outlets in order to recharge batteries. Vehicle recalls have become the talk of the town after Toyota’s announcement of a series of recalls since September 2009. So far, the automaker has recalled about 11 million vehicles globally in greater than 15 installments, more than any other automaker. Toyota’s recalls were related to problems such as faulty accelerator gas pedals, slipping floor mats and defective braking systems. They led the automaker to suspend the sale of its models several times and halt new car launches for the year. Further, the U.S. government has imposed the highest-ever fine of $16.4 million on the company, accusing it of a deliberate delay in recalling the vehicles by hiding its flaws. The company also faces numerous personal injury and wrongful death lawsuits, amounting to $4 billion in federal courts. However, Toyota has revealed that it has repaired five million vehicles related to its three biggest recalls announced in late 2009 and early 2010. Through the on-site SMART evaluation program since April, the automaker has also noticed a sharp 80 percent drop in customer complaints related to the sudden acceleration problem. In the spate of recalls following Toyota’s, other automakers recalls started. They include Chrysler, Ford, GM, Honda and Nissan. Among them, GM recalled most frequently in recent months. Since the beginning of 2010, GM has recalled more than 3 million vehicles in the U.S., Canada, Mexico and South Korea. Among these, the largest recall occurred in June, involving 1.5 million vehicles, in order to fix a problem with a heated windshield wiper fluid system that has been causing fire in the vehicles."

Zacks Equity Research
www.zacks.com


Market Report

Global petrochemical prices fell 4 percent in October - 11/20/2014
U.S. Demand For Gaskets And Seals To Reach $10.6 Billion In 2018 - 11/6/2014
Europe Tire Market Forecast And Opportunities - 2019 - 8/28/2014
Sustainability In The Tire Industry 2014 - 8/27/2014
Demand For Rubber Products In China To Reach 740 Billion Yuan - 8/14/2014
New Nanomaterials Promise A Sustainable Future For The Tire Industry - 8/4/2014
IRSG Offers Latest World Rubber Industry Outlook - 7/24/2014
Chloroprene Rubber 2014 Global Strategic Business Report Released - 7/18/2014
Italian Rubber And Plastics Machinery Exports Report Encouraging First Quarter - 7/15/2014
Rubber industry report available from IRSG - 7/8/2014
Lucrative Growth Market For Silicones - 6/13/2014
Global thermoplastic elastomers market to hit $15 billion valuation - 6/11/2014
Resurgent Demand From End-Use Markets To Fuel Growth In Global Industrial Rubber Products Market - 5/29/2014
World Demand For Kaolin To Reach 28.7 Million Metric Tons - 4/29/2014
International Rubber Study Group Report Examines First Quarter Of 2014 - 3/26/2014
Chemical Plants To Evolve - 3/26/2014
Profound Changes Expected For The Stabilizers Market - 3/18/2014
OTR Tire Market Industry Report - 2/24/2014
Rubber Product Manufacturing In Canada Examined - 1/27/2014
China Tire Industry Report, 2013-2017 - 1/3/2014
2013 Forecast For Italian Plastics And Rubber Machinery Industry Released - 1/3/2014
Vietnam To Become Third Largest Rubber Exporter - 1/2/2014
World Rubber Consumption Seen Climbing As Tire Demand Grows - 11/18/2013
International Rubber Study Group Reports On Third Quarter Of 2013 - 11/18/2013
Strong Growth Projected For Americas Composites Industry - 11/12/2013
Manifold Developments On The Market For Butadiene - 10/23/2013
Synthetic Latex Polymers, A $30 Billion Plus Market That Is Building Globally - 10/22/2013
Global Petrochemical Prices Rose Nearly 2 Percent In September - 10/7/2013
Global Demand For Thermoplastic Elastomers To Reach 5.8 Million Metric Tons In 2017 - 8/30/2013
International Rubber Study Group reports on second quarter of 2013 - 7/15/2013
Automotive industry outlook and review presented - 7/11/2013
Hankook Tire Gauge Index shows decline in summer driving - 7/9/2013
Global and Chinese tire mold industry examined - 7/8/2013
Ceresana provides complete analysis of global market for rubber - 7/8/2013
Italian rubber and plastics machinery exports face uncertain start to the year - 7/8/2013
Worldwide Industrial Rubber Products Market To Witness Steady Growth - 1/8/2013
No growth for 2012 tire shipments; two percent rebound anticipated in 2013 - 12/31/2012
European Tire Market Opportunities Reviewed - 10/5/2012
Tire and Rubber Recycling Industry Has Grown 1.7 Percent Annually For Past Five Years - 9/14/2012
2012 Tire Shipments Expected To Grow By 1.2 Percent - 8/13/2012
Transportation To Drive Global Thermoplastic Composites Market - 7/25/2012
Top Ten States For Manufacturing Jobs - 7/25/2012
Rubber Machinery Trade Back On Track - 7/19/2012
Global Automotive Tire Market Forecast To Reach $187 Billion In 2017 - 7/14/2012
Thermoplastics Bucking TPE Industry Trends - 6/26/2012
Rubber Consumption Increased Four Percent In 2011 - 6/13/2012
Global Demand For Industrial Rubber Products To Reach $140 Billion In 2016 - 5/31/2012
U.S. Demand For Gaskets & Seals To Reach $9.6 Billion In 2016 - 5/29/2012
Sustained Demand From Industrial And Automotive Sectors Drives Global Nitrile Butadiene Rubber Market - 5/17/2012
Rubber Consumption To Approach 31 Million Metric Tons In 2015 - 5/10/2012
Buying Tires Over Internet Reported To Be More Attractive For Drivers - 4/20/2012
World Demand For Rubber Processing Chemicals To Rise 4.7 Percent Annually Through 2015 - 4/10/2012
Global Rubber Consumption To Approach 31 Million Metric Tons In 2015 - 3/29/2012
Tire shipments to increase by approximately 2 percent - 3/8/2012
Global Demand For Tires To Reach 3.3 Billion Units In 2015 - 2/29/2012
Global Demand For Kaolin To Exceed 28 Million Metric Tons In 2015 - 2/28/2012
Indian Tire Market Expected To Grow Through 2017 - 2/28/2012
New Epichlorohydrin Manufacturing Technologies Based On Renewable Resources Boost Chinese Production - 2/28/2012
Global Gaskets And Seals Market To Reach $30 Billion By 2017 - 2/23/2012
Positive Outlook Predicted For Russian Rubber And Plastics Market - 2/8/2012
U.S. Carbon Black Trade Back On Track - 2/8/2012
Global Rubber Demand Forecast To Reach 27.2 Million Metric Tons In 2012 - 1/25/2012
IRSG Expects Five Percent Growth In Rubber Consumption - 1/9/2012
Heavy Duty OTR Tire Manufacturing To Gain Traction Over The Next Five Years - 12/2/2011
Global Chloroprene Rubber Market To Reach 445.3 Thousand Metric Tons By 2017 - 11/21/2011
Global Tires Market To Reach 1.8 Billion Units By 2017 - 11/11/2011
World Demand For Thermoplastic Elastomers To Approach 5.6 Million Metric Tons in 2015, Freedonia Reports - 10/17/2011
Global Long Fiber Thermoplastics Market To Reach 313.4 Thousand Tons By 2017 - 10/5/2011
IRSG Forecasts Rubber Consumption Growth - 9/29/2011
U.S. Tire Imports, Exports Continue Growth - 9/9/2011
Global Silicone Market Forecast To Reach $17.2 Billion By 2017 - 8/26/2011
Improving Economic Outlook On Tap For Chemical Processing Industry - 8/18/2011
2011 Tire Shipments To Grow Nearly 4 Percent - 8/5/2011
Yokohama Senior VP Of Sales And Marketing Gives Mid-Year Report - 7/25/2011
Latest Rubber Statistical Bulletin/Rubber Industry Report Available From IRSG - 7/5/2011
China Imports More Natural Rubber To Meet Booming Demand - 6/15/2011
U.S. Demand For Specialty Silicas To Reach $1.7 Billion In 2015 - 5/19/2011
U.S. Farm Tire Market Examined - 5/11/2011
Global Styrene-Butadiene-Styrene (SBS) Block Copolymer Market To Reach 1.9 Million Tons By 2017 - 4/20/2011
Global Nitrile Butadiene Rubber Market To Exceed 645 Thousand Tons By 2017 - 4/11/2011
Global Tetrahydrofuran Market To Exceed 800 Thousand Tons By 2017 - 4/11/2011
Global Market For Chloroprene Rubber To Reach 445.3 Thousand Metric Tons By 2017 - 4/5/2011
2011 Tire Shipments To Grow Three Percent - 3/24/2011
Automotive Industry Outlook And Review For March 2011 - 3/14/2011
U.S, Tire Shipments Increase More Than 10 Percent In 2010 - 2/17/2011
Rubber Demand Bounces Back, More Growth Seen - 2/8/2011
Automotive Coating, Adhesive And Sealant Demand To Rise 9.4 Percent - 2/8/2011
Growing Optimism In Manufacturing As 49% Plan To Increase Hiring In Next Six Months - 1/27/2011
Polyurethane Processors, Suppliers Head Into 2011 With Optimistic Outlook - 1/5/2011
Economic Growth Continues In 2011 - 12/8/2010
2010 U.S. Tire Shipments To Post Nine Percent Increase - 12/2/2010
Tire Manufacturers Emphasize Design As Low Rolling Resistant And Eco-Friendly Tires Gain Popularity - 11/22/2010
Automotive Industry Outlook Highlighted - 11/4/2010
Global Industrial Rubber Products Market To Reach $88.5 Billion By 2015 - 10/18/2010
Indian Tire Industry Analyzed - 10/6/2010
IRSG Says Global Output Of Rubber Increased 8.9 Percent - 10/4/2010
Indian Tire Industry Forecasted To 2014 - 9/1/2010
Platts Global Petrochemical Index Ended July Higher On Late Rally - 8/12/2010
2010 Tire Shipments To Increase Eight Percent - 8/11/2010
World Demand For Specialty Silicas To Reach 2.7 Million Metric Tons In 2014 - 6/11/2010
Rate Of Decline In Petrochemical Prices Picks Up Pace In May - 6/11/2010
Global and China Automotive Tire Companies Will See Revenue Growth, But Profit Fall in 2010 - 6/9/2010
Rubber Loses Support Of Crude Oil, Currencies And Commodity Stocks - 5/26/2010
Chinese Tire Industry Predictions for 2010-2011 - 5/19/2010
Rubber Crisis Looms, May Hit India Hard - 5/3/2010
U.S. Industrial Rubber Products Market To Reach $17.7 Billion In 2014 - 4/27/2010
Global Tire Cord Market To Exceed 1.3 Million Metric Tons By 2015 - 4/14/2010
Auto Industry Outlook for 2010 - 4/14/2010
World Industrial Rubber Products Demand To Grow By 4.5 Percent - 4/12/2010
Tire Industry Market Report 2010 - 3/29/2010
2010 Tire Shipments To Increase Three Percent - 3/22/2010
World Demand For Carbon Black To Reach 11.6 MMT In 2013 - 3/12/2010
Acrylonitrile Butadiene Styrene Copolymer Demand To Grow In 2010 - 2/22/2010
World Rubber Consumption To Reach 26.9 Million Metric Tons In 2013 - 2/22/2010
Signs of Timid Recovery in 2009 - 2/12/2010
Elastomers Distributor Sees Signs of Market Recovery - 2/1/2010
IRSG Offers Latest Rubber Statistical Bulletin - 1/6/2010
2009 Tire Shipments To Post Thirteen Percent Decline - 12/14/2009
Research Report On Chinese Rubber Industry, 2008-2009 - 10/7/2009
2009 Tire Shipments Revised To Drop 16 Percent - 8/12/2009
NR Supply Heading Into A Historical Fall - Review Of 12 Months Ended June 2009 - 7/21/2009
Natural Rubber Supply And Demand Forecast And Price Outlook - 6/30/2009
More Old Tires Put To New Uses; Scrap Tire Piles Receding - 6/24/2009
Global rubber consumption drops to lowest level since 2006 - 6/15/2009
Natural Rubber Production Dropped Drastically During January To April 2009 - 6/2/2009
High Growth Forecasted For The Global And China Tire Market, 2008-2009 - 5/8/2009
Global Production Of Natural Rubber On The Decline - 4/17/2009
U.S. Demand For Specialty Silicas To Reach $1.7 Billion In 2013 - 4/15/2009
World Natural Rubber Output To See Biggest Fall Since 1993 - 4/15/2009
China Holds Key To Rubber Production Rebound - 4/3/2009
World Demand For Nonwovens To Approach 8 Million Metric Tons In 2012 - 4/1/2009
China Is Leading Rubber Importer From Viet Nam - 3/26/2009
Poor Car Sales May Curb Global Demand For Rubber - 3/26/2009
2009 Tire Shipments To Drop Seven Percent - 3/17/2009
Dubai Rubber Imports And Exports Hit AED 7.8 Billion In 2008 - 3/16/2009
IRSG Forecast:: Rubber Consumption Will Decline - 3/10/2009
2008 Tire Shipments Drop More Than 6%, Says RMA - 2/24/2009
Natural Rubber Prices In India Decline In Fourth Quarter - 2/24/2009
Thailand May Purchase 200,000 Metric Tons Of Rubber - 2/24/2009
Vietnamese Rubber Sector Deals With Economic Crisis - 2/24/2009



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Featured Website

www.interbusinessgroup.com
Interbusiness Group is a UNI EN ISO 9001:2008 certified leader in the manufacture and distribution of INTERCURE® accelerators, vulcanizing agents and curing agents for special elastomers. Family-owned and founded in 1985 to cater to a niche market, we are headquartered in Milan, Italy (Interbusiness S.r.l.), with a technical operations facility in Brindisi, Italy (IB Chem S.r.l.), and a network of globally positioned independent distributors. Our sister company in New York (INTERBUSINESS U.S.A., INC.) distributes throughout North America. Interbusiness is dedicated to excellence in products and services, manufacturing efficiencies, quality systems, increasing value to our customers, and environmental protection.

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