Levelling off or still falling?
It has been quite a month for the forecasters. Not the weather forecasters mind you – although the winter weather that has sprinkled the UK and parts of Europe with a fresh dusting of snow will no doubt have kept them busy too – but rather the market forecasters. With ETRMA reporting that tyre unit sales fell off a cliff last year, Conti saying the market is likely to bottom out in 2013 and with other analysts predicting 2013 will be a good year for tyre retailers, what is on the horizon for the next 12 months?
Continue ReadingFuelling the future
A few years ago people were asking if this fuel-saving thing is ever going to catch on. Now virtually every manufacturer has a fuel-saving line and a fuel-economy strategy – we even have mandatory product labels comparing products on the basis of this characteristic.
Continue ReadingThe beginning of the end?
While some say the Mayan’s predicted the apocalypse would take place this year, the good news is that Armageddon doesn’t appear to have taken place either literally or figuratively. Instead, as we look back on 2012 it is probably fair to say that the year has been dominated by labelling, tough tyre retail sell-out conditions and a resurgence in car sales and production…in the UK at least. Some might gloomily reflect on the fact that our economy as a whole encountered a double dip recession, but there are also signs that the bad times are slowing and in fact things may even pick up a bit in the year to come. (All these themes are followed up in this month’s Review of 2012 feature, which begins on page 40 in our forthcoming December issue)
Continue ReadingWhen it comes to takeover talk, the question is – who’s in play?
Now the dust has settled from the first suggestions that Apollo Tyres was preparing to bid for Cooper Tire, the rumour mill has slowed considerably. There are those that are saying there is no smoke without fire when it comes to the reports published in the Indian and then global press; and there are those that believe it was all a carefully orchestrated publicity manoeuvre. Whatever the truth turns out to be, the interest surrounding this story is a reflection of the facts that the global market is ripe for consolidation and that there are a lot of ambitious tyre companies in and around the top 20 aiming to make it into the top 10.
Continue ReadingWhy we need labelling enforcement
With tyre labelling virtually upon us and with TPMS kicking in at the same time (see the forthcoming October magazine's Company News section for more coverage on this), the market needs to know where it stands with regards to enforcement…as soon as possible. We know the Department for Transport has got the whole West coast rail franchise fiasco fallout to deal with, but without proper attention the strength of the imminent labelling legislation could be seriously undermined. Indeed many questions are already being raised. This point is emphasised by a photo currently doing the rounds on the Internet. It is small and of mediocre quality, but what is clear about the image is that it portrays two Chinese-produced tyres of the same size model, speed and load rating on top of each other in a warehouse. A common sight you might think until you realise that the two apparently identical products bear two different European labelling results. The first BB-71 and the second CC-71.
Continue ReadingKeeping the main thing, the main thing
Following last month’s “Panorama” which covered issues relating to illegal tyre dumping, you could be forgiven for thinking this column has gone a bit “Radio Times.” It hasn’t, but it seems tyres are getting far more than their 15 minutes of fame this summer. While last month’s piece looked at the pros and cons of the BBC’s, shall we say, variable TV coverage (which leapt from theme to theme apparently without fully thinking through the lack of linkage between them), this time it was the turn of radio.
Continue ReadingThrow the book at the bad guys…
It is not often that a tyre journalist gets to take a turn at being TV critic, but July’s Panorama documentary focusing on tyre dumping was one such opportunity. This month’s Tyres & Accessories gives the 30 minute documentary the full treatment in the UK section of the forthcoming August magazine, however the issues raised are worth discussing in more detail.
Continue ReadingComment: Labelling Chaos?
I don’t want to be overdramatic, but the first round of tyre label unveiling that took place during last month’s Reifen 2012 (see page 46 in the forthcoming July issue for complete coverage of this event) was certainly telling. What we saw was a wide range of different approaches to disseminating this information. What we heard was an even wider range of explanations for all of this. But in the end it was as much about what the various manufacturers didn’t say as it was about what they did say.
Continue ReadingPreaching to the choir
As this issue of Tyres & Accessories goes to press, most of the team are en route to Essen for what has become the world’s largest tyre exhibition (look out for full coverage in our July issue and online at Tyrepress.com). Now that restrictions related to tyre labelling have been lifted, it is likely that this is the subject that everyone will be talking about. The leading manufacturers have already started positioning their companies in relation to one another and we can only imagine how they will position their respective pre- and post-labelling products compared with the rest of their group brands. Again this is something we are keeping a close eye on here at T&A.
Continue ReadingComment: No teeth in UK implementation of tyre legislation
When it comes to legislation affecting the tyre industry it is a tug of war between “rules are rules” and “rules are made to be broken.” As readers of our Tyrepress.com e-Newsletter will already know, the events of recent weeks have provided us with some bizarre examples of this kind of contrary logic in action. When Carl Steele from Lincolnshire was found guilty of causing in excess of a quarter of million pounds worth of environmental damage during a two year tyre dumping stint, you could be forgiven for thinking the justice system would force him to pay his debt to society.
Continue ReadingA real winter warmer?
After two successive cold winters (2009 and 2010) a lot was hanging on a frosty conclusion to 2011. While only five years ago winter tyre sales barely registered at less than 1 per cent UK market share, by the end of the opening months of 2011 various sources were reporting that the market had swollen to around 450,000 units, doubling and even tripling some wholesalers’ stock forecasts.
Continue ReadingHappy New Year, Happy New MOT
As of the 1 January 2012, the MOT test we all know and love will change. No I am not talking about the government consultation exercise mooting a possible change to 4-2-2 frequencies, that would be opening another can of worms entirely. What I am referring to is the technological evolution of the test that will see our belovedly idiosyncratic MOT stretch itself to incorporate an MIL survey. That’s a Malfunction Indicator Lamp check to you and me.
Continue ReadingWho knows?
As I write David Cameron has just vetoed Angela Merkel and Nicholas Sarkosy’s proposal for closer fiscal integration between European states. A day earlier Standard and Poor’s put the best part of Europe on credit watch, threatening to downgrade national credit ratings if nothing substantial happened to shore up the collective accounts. The day after the 10-hour long European fiscal integration talks concluded with all but three countries (UK, Sweden and Hungary) signing up to the treaty within a treaty, far from stabilising things, increased Italian bond rates actually made its governmental borrowing more expensive.
Continue ReadingTough times for tyre distributors?
As we look forward to 2012 there is no sign to economic pressures that blighted 2011 lifting any time soon. On the contrary, with the financial confusion surrounding the eurozone and with credit ratings agency Standard and Poor’s threatening to downgrade any of the 17 countries associated with it, there are still many challenges ahead. That said it was apparently a good year for some.
Continue ReadingA minority purchase?
Reading the recent UK winter tyre usage survey commissioned by Manheim Auctions, anyone would think that the concept of fitting winter tyres was a) peculiar and b) a “minority purchase.” The reality is that all across Europe millions of winter tyres are fitted every season and that the numbers of motorist taking the winter option are at an all-time high and growing fast.
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