Trump Backs Off Threat of Additional Tariffs on Mexico
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June 17, 2019 The Rubber Industry’s International Newspaper $99 per year. $4.50 per copy Trump backs off threat of additional tariffs on Mexico By Miles Moore throughout Mexico, giving priority to its southern Rubber & Plastics News Staff border,” the declaration said. WASHINGTON—Representatives of the auto Mexico will take “decisive action” to dismantle and auto aftermarket industries breathed a sigh human smuggling and trafficking organizations, of relief at the news that the Trump administra- according to the declaration. It also will coordinate tion had put aside its plan to levy tariffs on all with the U.S. to strengthen bilateral cooperation goods imported from Mexico. in securing their common border, it said. President Trump announced May 30 that the The U.S. will expand implementation of the exist- U.S. would place a 5 percent tariff on Mexican ing Migrant Protection Protocols, which calls for goods beginning June 10, then increase those migrants crossing into the U.S. from Mexico to be Tire Business photo by Bruce Davis tariffs by 5 percent every month to a maximum of returned to Mexico to await decisions on their asylum Steve Kiefer (left), GM senior vice president, global pur- 25 percent unless the Mexican government took claims, according to the declaration. chasing and supply chain, with Michelin CEO Florent strong actions to prevent illegal immigra- Also, the U.S. and Mexico will continue Menegaux and Eric Vinesse, executive vice president of tion to the U.S. discussions on further possible actions research and development at Michelin. “For decades, the to address illegal immigration over U.S. has suffered the the next 90 days, it said. severe and dangerous President Trump, while de- consequences of illegal claring the agreement a victo- No room for air immigration,” Trump ry in his war against illegal said in a May 30 state- immigration, reserved the ment on the White House right to impose the tariffs GM moves forward with Michelin website. “From a safe- later if he is dissatis- ty, national security, fied with Mexico’s airless tire as original equipment military, economic and progress in stem- By Bruce Davis humanitarian stand- ming the flow of im- Tire Business point, we cannot allow migrants. MONTREAL—General Motors Co. has agreed to accom- this grave disaster to Members of Con- pany Michelin on the next leg of its journey to bring a viable continue.” gress and business extended mobility solution to market. After a week of intense nego- interests alike reacted Michelin, in partnership with GM, has taken development tiations, the Mexican and U.S. with dismay to the origi- of its decade-plus old Tweel maintenance-free, non-pneumat- governments issued a joint declara- nal announcement of the ic tire/wheel system to the tion late on June 7, announcing new tariffs. A typical reaction came next level with the “Uptis” initiatives to prevent illegal immigrants from the Motor & Equipment Manufactur- prototype that the compa- from crossing into the U.S. from Mexico. ers Association, which said May 30 that tariffs on nies said could be market “Mexico will take unprecedented steps to in- Mexican goods would not create a more secure border. ready as an original equip- crease enforcement to curb irregular migration, to Instead, such tariffs “will only serve as an addi- ment fitment by 2024. include the deployment of its National Guard See Tariffs, page 26 Michelin and GM presented the next-generation airless tire/wheel concept during the Movin’On Summit for sus- tainable mobility, held in Montreal June 4-6. Uptis—Unique Punctureproof Tire System—is based on the fundamentals of Michelin’s Tweel tire/wheel product, Kumho, Custom Rubber fined introduced at the 2005 Detroit Auto Show, according to Eric Vinesse, Michelin executive vice president, research and development. a combined $1 million by OSHA Like the Tweel, the Uptis uses resin-reinforced fiberglass spokes as load-bearing elements. The materials, production By Miles Moore hazards; process and architecture of the Uptis spoke design is com- Rubber & Plastics News Staff • Failing to follow hazardous energy control proce- pletely new, however, Vinesse said. WASHINGTON—Kumho Tire Georgia Inc. and dures while employees perform service and mainte- The spokes are molded onto an aluminum cylinder and Custom Rubber Products L.L.C. face an aggregate of nance on machinery; the rubber tread is molded onto the circular platform that more than $1 million in fines from the U.S. Occupa- • Failing to train employees on safety control pro- attaches to the end of the spokes. This assembly is then tional Safety and Health Administration for alleged cedures; and bolted to an aluminum wheel cover/mounting plate that safety violations at their manufacturing facilities. • Failing to provide machine guarding on various contains the wheel hub. On May 22, OSHA fined Custom Rubber $132,598 pieces of equipment throughout the Macon plant. “Uptis represents progress toward Michelin’s vision for for each of four alleged willful violations at its plant Sae Joong Mold Inc. was fined $9,093 for using tomorrow’s mobility,” Vinesse said, “and also embodies our in Houston, for a total of $530,592. damaged slings and for electrical hazards at Macon. commitment to a better, sustainable mobility for all.” One day later, the agency issued citations against J-Brothers Inc. was fined $7,503 for failing to mount While GM was introduced as the development partner of Kumho for 22 alleged violations—12 serious, nine portable fire extinguishers or perform annual main- Uptis, the technology is not exclusive to the U.S. car maker, repeat and one other-than-serious—and fined the tenance on fire extinguishers. according to Michelin CEO Florent Menegaux, leaving the tire maker a total of $507,299. OSHA inspected the Macon plant Nov. 27, 2018. door open for other vehicle makers to consider it as well. In addition, OSHA fined two other companies The agency said this inspection was a follow-up initi- GM, however, was the first to express an interest and working for Kumho at Macon a total of $16,596 for ated after it failed to receive documents from Kumho therefore has a head start in the development process. an aggregate at Macon of $523,895. stating that the tire maker abated violations found Michelin and GM have entered into a joint research The citations against Kumho covered: during a 2017 inspection. agreement under which the companies intend to further • Exposing employees to fall, struck-by and burn See OSHA, page 26 See Michelin, page 26 ©Entire contents copyright 2019 by Crain Communications Inc. All rights reserved. VMI PIXXEL TIRE A SINGLE, INTEGRATED PLATFORM CONTAINING ITS OWN LOGICAL AND PROCESSING CAPABILITIES. VMI PIXXEL results in greater speed and accuracy in performance as well as much improved simplicity in operation and management, leading directly to better productivity. VMI PIXXEL has the ability to interface and integrate with all VMI systems, both hardware and software, around it, thus bringing Industry 4.0 to reality. With VMI PIXXEL, data obtained during the production process is instantly available for immediate quality reporting and analysis, giving you a huge competitive advantage in the market. vmi-group.com How technology meets success. www.rubbernews.com Rubber & Plastics News • June 17, 2019 3 Parker Hannifin to close hose Lion to buy SR plant from Firestone manufacturing plant in Mo. By Miles Moore ucts made at Orange are complementary to the company’s KENNETT, Mo.—Parker Hannifin Corp.’s Rubber & Plastics News Staff current portfolio and will strengthen the company’s ability Hose Products Division will close its manu- ORANGE, Texas—Lion Elastomers L.L.C. has signed an to support the synthetic rubber industry. facturing facility based in Kennett. agreement with Firestone Polymers to purchase Firestone’s “We have had a strong professional relationship with The firm said in a WARN notice to the synthetic rubber facility in Orange for an undisclosed price. Bridgestone for decades, and we are looking forward to Missouri’s Department of Economic Develop- With this sale, Firestone Polymers, a wholly-owned maintaining this relationship while we continue to support ment that the plant will close Sept. 30. Pro- subsidiary of Bridgestone Corp., will officially exit the the customers of the Orange, Texas, facility,” said Jesse duction will be transferred to existing loca- non-tire rubber business, according to a statement from Zeringue, Lion Elastomers CEO and president. “This asset tions in the U.S. by the end of September. Bridgestone Americas. purchase will provide our company with the opportunity “This was not an easy decision to make “Though the decision to sell the Orange, Texas, plant to further diversify our business and add additional prod- given the impact it has on our team members,” was especially difficult given the plant’s long-standing uct offerings to current and new customers.” Parker said in the notice. “However, this was presence in the community, Bridgestone considered the The sale is expected to become effective June 30, subject the only viable option as the demand for the competitiveness of the market and we are confident this to regulatory approval and other closing conditions, products manufactured at the Kennett facility move will provide the best opportunity to deliver on its Bridgestone said. can no longer support the operating costs.” long-term growth potential,” Bridgestone Americas said. After the sale is completed, Firestone Polymers will The move impacts 92 full-time employ- The Orange plant manufactures polybutadiene and sty- continue to operate its manufacturing facility in Lake ees, who received written notification on rene-butadiene copolymers under the Stereon, Diene and Charles, La., and its Akron pilot plant, the company said.