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E-Tailers and Autocentres are on the Up

What will the tyre retail business look like in five years time? Who knows. As I have learnt to my peril in this column, prognostication is a dangerous business. Let’s not recall how last year I wrote “unless there is an unlikely stay of execution” regarding the implementation of s-marking regulations (see T&A’s August 2009 issue for more on this). But I digress.

The news at the end of February that Halfords bought Nationwide Autocentres for £73.2 million (see page 14 for complete coverage) says something about how tyre retail is evolving. Along with the purchase announcement came plans to rebrand the chain and the affirmation of existing plans to double the number of branches to 424. When you consider that the second largest tyre retail chain in the country, ATS Euromaster, reported that it was “reviewing” up to 80 of its 456 branches last September, it is clear that size gap between chains at the top of the two sectors is narrowing. True, Autocentres don’t focus on tyre sales like the traditional outlets do, but there are signs they are considering how to increase their focus in this area.

Related news:

  1. Retail: Hold it steady
  2. Online Retailers Amongst Those Supporting Tyre Labelling Rules
  3. Taking the Plunge: The Good Tyre Guide and bridging the online retail/wholesale gap
  4. The beginning of the end?
2nd March 2010 by
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What Does Future Hold for Truck Tyre Retreading?

2009 may have been a difficult year for the tyre business in general, but the new truck tyre sector faired particularly badly. And as a knock-on effect of the reduced number of miles driven by fleets in the slowing economy, retread product was also hit (for example some figures suggest UK retread output was down 20 per cent this time last year). However, this improved during the course of the year and with retreading companies securing an increasing share of fleet business, Devon-based Bandvulc tyres is looking forward to a bright future in the international logistics business.

In a period of expansion that has impressed even the truck and bus market’s leading new tyre manufacturers, in recent years Bandvulc has grown to an influential position in certain segments, particularly to supermarket fleet tyre supply. Along the way the company has developed a reputation for environmental consciousness and recently took on an expanded new tyre distribution role in order to extend the service it can offer its growing fleet customer base. Speaking to Tyres & Accessories, company director and co-founder Richard O’Connell defines three important dimensions for those in the retreading business to consider: environmental, technical and political.

Related news:

  1. European Metal Recycling Chooses Bandvulc and Fulda
  2. Retreading’s “new beginning” hinges on EC decision – Bipaver
  3. Brityrex update – day two
  4. Brityrex visitor numbers up 5 per cent
22nd February 2010 by
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Nationwide Autocentre Purchase Brings Halfords Full Circle

The latest developments in Halford’s complex car servicing history (see Halfords Buys Nationwide Autocentres for £73.2 million – 18/02/10), bring with them a distinct sense of déjà-vous and highlight the cyclic nature of ownership in this industry. From Halfords point of view the latest venture represents a new beginning for a business that is radically different to when it last tried car servicing.

Related news:

  1. Halfords Buys Nationwide Autocentres for £73.2 million
  2. Halfords Aims to Add 200 Nationwide Branches, Double EBIT
  3. Halfords Sales Reach £831.6 million Supported by Nationwide Acquisition
  4. Halfords Group reports £98 million sales from Autocentres
18th February 2010 by
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Halfords Buys Nationwide Autocentres for £73.2 million

Halfords Group has bought Nationwide Autocentres in a £73.2 million deal, which managers described as the next “logical step” in its expansion plans. Nationwide, which has been owned by private equity group Phoenix since 2006, employs 900 mechanics and serves roughly 500,000 customers a year. Nationwide offers customers and fleets MOTs, servicing and repairs, but also recently increased the emphasis on tyres at its 224 outlets.

Related news:

  1. Nationwide Autocentre Purchase Brings Halfords Full Circle
  2. Halfords Aims to Add 200 Nationwide Branches, Double EBIT
  3. Halfords Sales Reach £831.6 million Supported by Nationwide Acquisition
  4. McConechy’s Tyre Service Ltd sold to Halfords for £8.5 million
18th February 2010 by
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TWG Chair: Tyre Wholesalers Again Show Recession Resilience

As a man of 40 experience in the tyre trade – and with it the knowledge of three recessions – Tyre Wholesalers Group chair Ashley Croft is in a good position to comment on the effects of the current financial crisis (which, depending on whose opinion you are heeding, may or may not have come to an end). In his speech at the 2009 TWG Annual Lunch, Croft described the past year as a “harsh period”, but made clear that the recession had hit hardest in the tyre business where manufacturers were most committed to supplying original equipment. However, he stated, “replacement market traders have once again proved themselves to be relatively recession-proof”.

Related news:

  1. TWG sees Continuation of 2010 Trends into 2011
  2. ‘Manufacturers…Drive the Grey Market’
  3. Who Wears the Trousers?
  4. TWG: 1H 2008 a Record Year for UK Tyre Wholesalers…
9th December 2009 by
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Premium Tyre Message Must Permeate Supply Chain: Rickard

In what Tyre Wholesalers Group chair, Ashley Croft called, “a clear challenge to the tyre industry”, Jim Rickard – managing director of Michelin Tyre plc – called on the members of the TWG to match the “sophistication…of the manufacturers within the whole supply chain”. Speaking at the Group’s Annual Lunch in Droitwich Spa, Rickard expressed uncertainty about the way information about tyres is transmitted to customers: “I’m not sure the message about performance characteristics gets through at the point of sale.” He argued that new legislation – exemplified by forthcoming tyre labelling laws governing noise, wet grip etc – was making visible to the consumer proof of a tyre’s superior characteristics over rival brands, thus allowing components of the supply chain to justify to customers the relative cost of one product to another.

Related news:

  1. Michelin publishes online truck tyre labelling guide
  2. Growth in Mid-range Market Size and Influence: Leading wholesalers
  3. Phil Baldock takes over as Michelin UK communications head
  4. Brityrex confirms free technical seminar topics
9th December 2009 by
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Hawleys is the Oldest Tyre Dealer in the UK

It’s official, Hawleys Tyres Ltd Company is the oldest independent tyre dealer in the UK. And in recognition of the company’s prestigious position as the nation’s longest established tyre dealership, Tyres & Accessories today awarded Martin Hawley and directors Tim and Simon Hawley with a certificate marking the achievement and a case of wine. The prize was presented by Pirelli Tyre UK managing director Dominic Sandivasci, who presented the 12 bottles of prestigious Pirelli P Zero red wine to the Hawleys.

Related news:

  1. BMTR Celebrates 90 Years, But is it the Oldest Tyre Dealer in the UK?
  2. BMTR presented with PPC award
  3. Lindbergh and Demarchelier snap Pirelli Cal 50th anniversary pics
  4. Top Pirelli Performance centres get a tour of McLaren
16th November 2009 by
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Destination Europe: More Chinese Products En Route to Europe?

Now President Barack Obama has stuck 35 per cent import duty on all passenger car and light truck tyres from China for the next three years what happens next? Chinese tyre manufacturers won’t want to sell fewer tyres each year. But US importers, consumers and manufacturers are equally unlikely to want to pay or absorb the additional costs. Tyres & Accessories spoke to a range of US, Far Eastern and Chinese companies and found that manufacturers are having to rely heavily on production flexibility, while traders are now setting their sights on one market in particular – Europe.

Stephen Wu, managing director of Chinese tyre trading operation, Best Choice International, reports that orders from the US stopped came to a virtual standstill in July. Their strategy is now openly towards producing more European market orientated products: “We stopped an SUV/LT project and waited for the decision. And we produced more European UHP tyre sizes, not US sizes.” Companies like Best Choice are now prioritising orders in other markets – especially Europe – where they aim to sell the most popular sizes, UHP and winter tyres. Best Choice is apparently interested in other markets as well, but Wu refused to give further details at this time. As far as Best Choice is concerned there is now zero chance of getting orders in the first year of the tariff, except in the 19-inch and over category. As a result competition is likely to be based on just two factors: price and delivery time.

Related news:

  1. US Imposes 35% Tyre Tariff, China Plays Chicken
  2. Coalition to Battle USW Over China Tyre Import Scheme
  3. EU makes final truck tyre anti-dumping duties decision, retains fixed rates for manufacturers
  4. Amiens closure is inevitable, so what’s it mean for the rest?
6th October 2009 by
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BMTR Celebrates 90 Years, But is it the Oldest Tyre Dealer in the UK?

Although recent years have been challenging for the UK automotive industry, Birmingham remains a city steeped in automotive heritage. And, in the midst of some high profile casualties in recent years, BMTR says it is going from strength to strength and this year celebrates its 90th anniversary. The company clearly has some history, but is it the oldest in Britain? In order to find out, and in celebration of BMTR’s 90th anniversary, Pirelli Tyres UK exclusively through Tyres & Accessories is offering a case (that’s 12 bottles) of fine wine to any tyre dealer or wholesaler that can prove they are the oldest in the business.

Related news:

  1. Hawleys is the Oldest Tyre Dealer in the UK
  2. Stapletons ‘Continues to Flourish’
  3. Pirelli introduces social media Moto competition
  4. BMTR Group Make New Board Appointments
25th September 2009 by
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Kwik-Fit Gains Presidential Support in Viral Video

Tyre change by Presidential decree… the man in America’s top job pauses from world affairs to discuss a topic of true importance. Of course, it’s just a bit of fun from Kwik-Fit, but the viral film of President Obama does deliver a message worth listening to. The viral video, titled “Obama calls for tyre change”, was produced by advertising agency DDB London.

Related news:

  1. Amateurish Bruno clip a viral sensation
  2. Conti Launches iPhone Ad App
  3. New battery tester offers printout facility
  4. Swift alignment & new products from Supertracker
29th July 2009 by

Reynolds Logistics Becomes Latest Michelin PPK Partner

Michelin has added another pence per kilometre (PPK) partner to its UK portfolio through signing a three-year contract with petrochemical transport specialist Reynolds Logistics. As part of the deal the Reynolds fleet of 44 tonne Mercedes-Benz Actros tractor units and 18 to 26 tonne Axor rigids will be fitted with a range of XZE2+ / XDE2+ tyres, as wear dictates, whilst its Magyar tankers will receive XTE2 and XTE3 trailer tyres.

“With a fleet covering more than three million kilometres a year delivering bulk lubricants, safety is of paramount importance,” commented Ian Williams, fleet operations manager at Reynolds Logistics.

Related news:

  1. ATS-E launches mobile “Carbon Cutter” service
  2. International logistics company 'saving' with Michelin tyre policy
  3. ATS Euromaster service ‘key’ to Gwynedd Shipping Group
  4. ATS Euromaster retains ISO 9001 for 27th year running
19th June 2009 by
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Point S – From Private Brand to Leading Brand

In 2005 Point S operated in nine different European countries. Four years later it is almost double that. Currently the group consists of 1700 tyre outlets, run by 1000 different owners, commanding a 6 per cent retail market share in both the passenger car and truck tyre segments across Europe. Since the first Point S was opened in 1971, the network has used the same business model in every country its has grown into – allowing independent tyre entrepreneurs to control their business while allowing everyone to benefit from the strong brand and economies of scale that come with a large group.

However, the group’s private brand strategy is also a key part of the company’s business and by the time Point S development announced that the France-based international tyre retail group had expanded into Bulgaria (its 17th country) in January 2009, this part of the business had become an exemplary model in the tyre market. Tyres & Accessories recently interviewed Point S Development’s international operations director, Fabien Bouquet, and found out why private brands are so important.

Related news:

  1. Customer is King?
  2. Axle Group See Profits Double on Flat Sales
  3. Point S (UK) Aiming for 100 Members, Recruitment Drive at Brityrex 2010
  4. Stapleton’s increasing van tyre choice
25th March 2009 by
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For Yinbao Tyre, imitation is the highest form of flattery

Western European manufacturers’ complaints that their products have been copied in the Far East are well reported. However, Shandong Yinbao Group is one of a select few Chinese tyre manufacturers that have suffered product piracy too.

According to international marketing manager Gavin Liu, the Shouguang-based Yinbao Group recently discovered that its growing off-the-road (OTR) product range was being copied, with the pirates making use of the company’s Goodtyre name: “We have found some faked tyres recently in the market copying the Goodtyre brand name of OTR products – which is both damaging and illegal.” Fighting back in a letter to customers, Yinbao representatives wrote: “Companies and people who undermine the interests of clients and reputation of our group will be investigated for legal responsibility according to law.”

Related news:

  1. Shandong Yinbao Tyre Group Spreads Its Wings
  2. Michelin “More Agile Than Ever” – 2009 Financial Results
  3. Alliance Tire Buys GPX Assets
  4. Lanxess Examining Options for Brazil Retreading Chemical Production
23rd October 2008 by
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TPCATS: Built to Last

Staffordshire based TPCATS specialises in the manufacture of stainless steel manifolds, front pipes and catalytic converters to OE standards. Production to an OE standard of course ensures a high level of quality, and the company comments that its stainless steel products are far more efficient and reliable than ceramic alternatives, yet they are available at comparable prices. And as TPCATS has confidence that its products will not break, rattle or fail an emissions test, it is happy to offer a three-year warranty as standard on its constantly growing range. The result, says TPCATS, is fewer returns, less failures and less hassle for customers. TPCATS boasts a valid warranty claims rate of less than 1 per cent, far below the aftermarket standard of 4 per cent.

Related news:

  1. TPCATS closes UK operations
  2. Klarius increases UK manufacturing capacity
  3. Tyre dominance in overall aftermarket beginning to diminish
  4. DVSA wins prosecution against DPF manufacturer
7th October 2008 by
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A Larger Slice of the Cake – high performance tyre market data

During the 1990s the US television series ‘The X-Files’ popularised the catchphrase “the truth is out there.” But while the programme focused on little green men and other unexplained phenomena, it could have easily referred to the high performance tyre market. The truth about this market segment is, you see, somewhere out there. Yet it is difficult to place one’s hands with confidence upon a single, authoritative source of data that tells exactly how things are and where they are headed. What can really be said about the high performance tyre market?

Related news:

  1. What Is The Future For Goodyear?
  2. Michelin: Energy Tyres Have Saved 9.5 billion litres of fuel since 1992
  3. High performance tyre sales support UK market development
  4. Encircle Now Offering Two-Wheel Market Data
12th May 2008 by

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