LMC sees sharp downturn in tire sales. (Market Focus).LMC LMC Large Magellanic Cloud (also see SMC) LMC Library Media Center LMC Lees-McRae College (Banner Elk, NC) LMC Lutheran Medical Center LMC League of Minnesota Cities LMC Local Medical Committee International's annual forecast of the tire industry predicts that 2001 will end showing a sharp downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in both original equipment and tire demand compared with 2000. With a then buoyant Buoyant The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength. Notes: These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. world economy and global car and commercial vehicle production rising to record levels, 2000 saw global tire sales and production rise to new heights. However, there were already signs in 2000 of an economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in all three of the world's largest economies - the U.S., Japan and Germany - leading to the global tire industry's reverse. LMC estimates that global light vehicle tire sales grew by close to 4% during 2000, to over 1,000 million units, while medium/heavy commercial vehicle (M/H M/H Man Hours CV) tire sales rose to over 100 million units. During 2001, with the slowdown adversely affecting vehicle sales and production, tire sales are expected to fall, with the drop in M/H CV tire sales being greater than that of light vehicle tire sales. LMC expects OE tire sales to fall more sharply than replacement sales, as businesses and consumers reduce purchases of new vehicles. OE tire sales are expected to fall by 2% for light vehicles and by over 10% for M/H CV during 2001, before demand begins to recover in 2002. Replacement tire sales averaged 4% growth over the last five years. LMC expects light vehicle tire replacement sales to be virtually unchanged in 2001 compared with 2000, with falls in sales in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. being compensated by rises in replacement sales elsewhere. The drop in North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sales would have been greater but for the demand caused by the Ford/Bridgestone tire recalls. This, however, will have brought forward normal replacement sales, which suggests lower North American replacement demand in 2002. For M/H CV tires, LMC expects replacement sales to fall by 1%. Lower sales point towards lower production during 2001, which should fall short of the record car tire production of 866 million units and commercial vehicle (light plus medium/heavy commercial vehicles) tire production of 289 million units in 2000. |
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