GLG News by Rubber Experts

James "Jim" RippyFormer Senior Vice President of OperationsCONTINENTAL TIRE THE AMERICAS, LLC.

October 10, 2007

Analysis of:GM looks to substitute materials to reduce costs: Purchasing VP calls price increases "scary" and outlines upcoming plans | www.purchasing.com

GM continues their attempts to restore profitability from the "hides" of their suppliers. Their purchasing department over the years has been a true deterrent to their success. Their recent statements are reminders of the Jack Smith and Ignatio Lopez era. Some of the supplier executives will remember the teams that GM would send to their factories supposedly to assist in improving the suppliers efficiency and reducing the price to GM. What a farce! They should have been visiting their top suppliers to learn how to be more efficient at GM. These programs only covered up the lack of leadership and management capability at GM. They have never learned how to partner with their suppliers to reduce cost for mutual success. They continue to use fear in their supplier relationships. Statements that commodity prices are scary and material substitutions are being considered by GM purchasing only re-inforces that their methods are stuck in a time-warp just like their performance of the past

John CoatesPresident and Chief Executive OfficerThe Fennimore Group

Ship Order Secrecy Shifts Forecasting from Capacity to Performance

October 8, 2007

Analysis of:Ship order secrecy could tip supply and demand balance, says analyst | www.compairdata.com

Facing increased barriers to accessing new vessel building data, perhaps the maritime industry has awakened to the reality of their own achilles heal: why deliberately contribute to the ease of collecting data on global TEU operating capacity? Historically, new capacity implied reduced operating costs for the carrier, which strengthened the shippers' argument for flat or falling rates during contract negotiations. With more of the new capacities revealed closer to maiden voyage, advance planning in rate negotiations will have a bit smaller universe of factors to consider, something that could begin a potential shift away from traditional negotiation strategies on both sides of the table.

John CoatesPresident and Chief Executive OfficerThe Fennimore Group

GM Tackles Strategy in Wake of Souring Commodities

October 8, 2007

Analysis of:GM looks to substitute materials to reduce costs: Purchasing VP calls price increases "scary" and outlines upcoming plans | www.purchasing.com

To say that GM sees the next horizon of cost savings within commodity substitution only paints a narrow view of the larger issue facing GM, Ford and Chrysler. North American automobile marketplace success dictates the need for innovative products with styling and performance demanded by its customers. Forward reaching innovation of established and new components / composites, engineered for safety and reliability, are just one step needed for these 3 to survive, and is good for the global industry at large.

John CoatesPresident and Chief Executive OfficerThe Fennimore Group

Innovation vs. Rationalization: What Keeps Automotive Companies Rolling

October 4, 2007

Analysis of:Mazda develops catalyst to slash precious metal use | uk.reuters.com

Japan's Mazda Motor Corp announcement of reducing the use of palladium and platinum by 70-90% in their new single-nanotechnology automobile catalyst is proof that with rising prices comes innovation, that embracing change is good for the company and good for the consumer, and that Mazda may, in fact, have a better idea, something that has Ford and the rest of the automotive industry thinking.

James "Jim" RippyFormer Senior Vice President of OperationsCONTINENTAL TIRE THE AMERICAS, LLC.

They just don't get it!

August 31, 2007

Analysis of:Ford, GM propose health care fund to union | www.autonews.com

Any agreement on health care funding is only a short term fix. We are the only developed nation in the world that does not supply universal health care to their citizens. Health care cost's have doubled in the past decade with relatively tame overall inflation. We need universal care with a single payer system. There is no justifiable reason for the increases in health care cost to such astromomical levels. This factor affects the ability of the auto maker's to compete with contries that provide health care as a birthright, ratheer than a service. Not only does our system continue to drive manufacturing off-shore, it is morally wrong to have 50 million people without health care access. We have thousands of people who die each year for lack of access to quality health care. Rather than negotitiation to fund a broken system, we need to jointly ask our politicians why we cannot have a system like France, Germany, Canada, United Kingdom, Sweden etc. We are ranked 37th in health care.

Kevin BoyleConsultantKEVIN L BOYLE

Familiarity breeds contempt? No. Opportunity costs.

July 26, 2007

Analysis of:Economics 101: Oil Rises on Supply Questions | www.forbes.com

The price of oil has not yet impinged on the cost of not using it. It remain economically efficient. As inflation sets in, however, there will be less and less incremental budget to be spent on energy. This will likely fuel inflation and hurt demand.

John CoatesPresident and Chief Executive OfficerThe Fennimore Group

What's NOT to expect within the 2007 Heavy Duty Truck Market

May 29, 2007

Analysis of:More Layoffs at N.C. Freightliner Plant | biz.yahoo.com

The impact of clean air initiatives has landed in the laps of its participants. The old adage of "no pain, no gain" is an unfortunate reminder that any change intended for a greater good will generate short term consequences. In this case, 2006 Class 8 purchases reflected more of advance buys normally aggregated over several years versus scheduled replacements, resulting in record sales for less environmentally friendly engines with purportedly better fuel mileage than the cleaner burning 2007 models mandated by federal law. The results: look to '07 Class 8 new truck sales to number in the 160,000 unit range compared to last years nearly 290,000 units. This doesn't bode well for production numbers for DC's Freightliner; Paccar's Kenworth, Peterbilt, and Western Star; Navistar's International; or Volvo's Mack and Renault badges. But to offset this real "pain" is the promise of improved fuel economy, lighter truck cab and frame designs, and the prospect of breathing a bit easier.

James "Jim" RippyFormer Senior Vice President of OperationsCONTINENTAL TIRE THE AMERICAS, LLC.

GM has missed the Boat

March 30, 2007

Analysis of:GM CEO Sees No End to Overcapacity | online.wsj.com

GM has missed the boat, the dock and the road to the lake. This company is suffering from a serious disease called "Executivitis".

Kevin BoyleConsultantKEVIN L BOYLE

Depends on the Price of Benzene -- at the moment

August 23, 2006

Analysis of: Mitsui Chemicals To Develop Benzene Catalyst In Singapore | www.easybourse.com

Technology is well-understood

Make/buy decision for benzene

Kevin BoyleConsultantKEVIN L BOYLE

How to view margins