Michelin Launches UK Part of New Global Ad Campaign
Michelin has launched the UK part of a new global ad campaign based on the theme: “The right tyre changes everything.” According to the company, the new campaign is intended to illustrate the competitive advantages of Michelin tyres and will roll out across the country from 15 March. While creating a link with the grand tradition of Michelin advertising, the company has chosen a fully animated presentation for its new advertising campaign. It features the famed Michelin man, Bibendum, in an animated world. As ambassador of the Michelin brand, he comes to the aid of motorists in trouble, replacing their inefficient tyres with Michelin tyres that he pulls from his body, thereby enabling them to keep on driving.
Continue ReadingChina Market Growth Three Times Global Average
An estimate given by Sumitomo Rubber Industries suggests that sales of tyres in China will increase at three times the global rate. Bloomberg reports company president Tetsuji Mino as saying sales will increase about ten per cent per annum from just under 150 million tyres in 2009, compared with a global growth of three per cent. “We are sure that China is the most promising market,” Mino said. “Car ownership is spreading from wealthy people to ordinary consumers.”
Continue ReadingGovernment Backs General Motors Europe With £270 million Loan Guarantee
Business Secretary Lord Mandelson announced today (12 March) that the government has agreed a €300 million (£270m) loan guarantee with GME Europe. Agreed under the government’s Automotive Assistance Programme, the British loan guarantee will be joined by extra support from GM in the US and other European government. According to the business secretary’s office, the guarantee is designed to help secure the company’s operations in Britain and the rest of Europe and follows “detailed and highly complex talks between the Government and GM.”
Continue ReadingPirelli – 20% More Capacity by end of 2011
During the company’s 2009 full financial year conference call on March 10, Pirelli Tyre CEO Dr. Francesco Gori discussed a number of plans for this and the coming year. “Our strategic guidelines for 2010 confirm our strategic positioning in line with our business plan,” he stated. “And the distinctive strategic features are focused on the strong and truly global brand that made us improve once more our position in the top consumer segments. It selected exposure in emerging markets with a focus on Latin America, where we are clearly number one, the Middle East, Africa and Asia. Our expectation for 2010 is to further improve our revenues in the industrial business by fully exploiting the potentials in those geographies.”
Continue ReadingMarket Conditions Prompt Mothballing of Sapphire’s Avonmouth Site
The Avonmouth based waste tyre chipping facility opened by Sapphire Energy Recovery last August has been ‘mothballed’ as a measure to counter difficult trading conditions in the used tyre collection and processing market. The stopping of operations at Avonmouth, says Sapphire, has been taken as a measure to maximise operational efficiency, whilst maintaining quality and reliability of supply to its customers. The company adds that the decision to do so was made following “continued difficult trading conditions” in the used tyre market with increasing demand for more economical waste-derived fuels by the building materials market.
Continue ReadingAcceptance of Daewoo Sale to Aid Kumho Restructuring Plan
The Kumho Asiana Group is one step closer to untying its financial knots following the financial investors of Daewoo Engineering and Construction accepted the terms for selling their share in the company. This leaves the path clear for Kumho Asiana to continue its restructuring plans a step further without losing Kumho Industrial to court receivership.
Continue ReadingDespite Reduced Sales, Pirelli Tyre Records Stronger Profit in 2009
Financial statements approved by the Pirelli & C. SpA Board of Directors on March 10 show Pirelli Tyre to have attained revenues of 3,992.9 million euros during 2009, a 2.6 per cent reduction on a year earlier. Despite this slight annual decrease, sales in the fourth quarter leapt 18.7 per cent – an organic growth of 13. 9 per cent – to 1,034.3 million euros EBITDA before restructuring charges amounted to 538 million euros, up 21.9 per cent compared with 2008, or 13.5 per cent of sales, compared with 10.8 per cent of sales a year earlier. In the fourth quarter, EBITDA before restructuring charges stood at 155.2 million euros compared with 62.9 million euros in the corresponding period of 2008, with the sales margin rising to 15 per cent from 7.2 per cent in the same period of 2008. EBIT before restructuring charges was 345.5 million euros, or 8.7 per cent of sales (6.1 per cent in 2008) representing an increase of 37.8 per cent compared with 250.7 million euros in the previous year. In the fourth quarter, EBIT before restructuring charges amounted to 104.7 million euros (10.1 per cent of sales) compared with 18.9 million euros (2.2 per cent of sales) in the corresponding period of 2008.
Continue ReadingBridgestone Europe Rated a “Top Employer”
The CRF Institute, an independent research organisation specialised in labour conditions, has certified the Brussels based Bridgestone Europe headquarters a “top employer” in its Top Employers Belgium 2010 ranking. According to CRF, Bridgestone’s most outstanding employer attributes are its internal promotion policy and the training it provides.
Continue ReadingConti Looking at Consumer Tyre Price Increases
Speaking to the German language automotive publication Automobilwoche, the head of Continental AG’s Passenger Car Tyre division, Nikolai Setzer, indicated that price rises are impending. Although exact price adjustments will vary from market to market, he said “the increases are expected to be in the vicinity of three to five per cent.”
Continue Reading3-Year Contract Furthers Dunlop Aircraft Tyres’ Bmibaby Supply
Exclusive supply of nose wheel and main wheel tyres to the Boeing 737-300 and 737-500 fleet operated by low-cost airline bmibaby is to be carried out by Dunlop Aircraft Tyres following the signing of a three-year contract between the Birmingham based tyre manufacturer and its long-standing customer. The agreement, which Dunlop Aircraft Tyres says is worth more than a million pounds, covers the supply of both new and retreaded aviation tyres to the British Midland Limited subsidiary.
Continue ReadingMichelin Chooses Damco for Vietnam Logistics
Michelin has appointed freight forwarding and supply chain management service provide Damco as its logistics and customs clearance provider in Vietnam. Under the three-year contract, Damco will handle Michelin’s exports from Thailand into Vietnam, inland transportation, cross-docking and distribution to customers within Vietnam. Damco will also manage warehouse operations for Michelin in Hanoi and Ho Chi Minh City. The new logistics set up will enable Michelin to distribute directly to almost 100 dealers across the country.
Continue ReadingPirelli Tyre Revenues Expected to Increase in Fourth Quarter
Pirelli & C SpA is scheduled to reports its fourth quarter results and 2010-11 guidance on March 10. Deutsche Bank Equity Research anticipates that in the fourth quarter Pirelli Tyre revenues should benefit from a volume increase (Deutsche Bank estimates a 15% increase) compared with decreases in the previous nine months, a negative price mix (a price mix of -2% versus +6.9% in Q1, +5.6% in Q2 and +4.7% in Q3) which Deutsche Bank believes has allowed Pirelli to gain market share on the continued discipline of manufacturers, and a 2 per cent positive foreign exchange impact. Furthermore, says Deutsche Bank, margins should benefit form low raw material prices, as the large price increases for these commodities took place in 2010.
Continue ReadingGITI Tire IPO Reportedly Near
Reuters reports that GITI Tire intends to launch a US$400 – 500 million initial public share offer in Hong Kong in the near future. The news agency states that a ‘source’ indicated Giti Tire plans to seek Hong Kong listing committee approval in the coming two weeks, aiming to list shares in April. The deal is, adds Reuters, sponsored by BofA Merrill Lynch and Credit Suisse.
Continue ReadingLiving and Breathing the Product
During the previous three years Alliance Tire has invested US$300 million in the company’s further development. This sizeable sum has been directed into several key projects. The highest profile of these, of course, has been last December’s acquisition of certain GPX assets, including the Galaxy and Primex OTR tyre brands. A specific focus has also been placed upon Alliance’s principal market of Europe: In December Alliance Tire Europe BV’s new headquarters was opened, and several weeks later Alliance Tire announced the appointment of a new president for the operation, former head of Goodyear industrial, farm and OTR tyre initiatives for the Middle East and Africa region, Manuel Pintado. Recently Tyres & Accessories paid Alliance Tire’s new European headquarters in Halsteren, the Netherlands a visit to hear Mr. Pintado’s views on Alliance’s recent activities and where the company plans to go from here.
Continue ReadingBridgestone is Most Recommended 4×4 Tyre Brand
The latest market research on which 4x4 tyre brands are most recommended to customers suggests that the theory that premium brands have been able to hold their share in the market are likely to be true. In the case of Bridgestone (the most recommended 4x4 tyre brand in the survey) this means the company’s tyres are recommended 18.02 per cent of the time, almost twice as much as the nearest competitor. The number two spot is held by Pirelli, whose tyres are recommended 10.4 per cent of the time. Together with Goodyear (9.92%); Michelin (7.2%); Avon (6.40%); Continental (5.92%); and Dunlop (2.48%), this means premium brands account for over 60 per cent of recommendations. Encircles’ data doesn’t report the specifics of conversion rates, but if the majority of these recommendations are converted into sales (something which is generally considered to be the case) then this premium-heavy metric would put the 4x4 sector way ahead of the passenger car sector as a whole which is considered to be comprised of about 30 per cent premium tyres.
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