The Truck Tyre Business
That the heavy truck tyre business is changing dramatically at all levels cannot be denied. Tyre dealers doing this business almost as a sideline in their local markets are facing a decrease but they are not too sad about this development because it is becoming harder and harder to earn money with truck tyres. This sector of business is decreasing because, for hauliers and their fleets, an enormous process of consolidation is taking place. In the future we will have tyre dealers saying good-bye to the truck tyre business and tyre dealers being strong in car and truck tyres. The media predict that goods traffic will increase significantly in coming years. Tranportation by waterway, railroad and especially road haulage will grow. But that might be a scenario for the longer term, because now we can read predictions of lower new truck registrations of about ten percent this year, and also next, in most European countries. But the stock lists seem to be stable because hauliers use their trucks longer (although they would prefer to buy a new one but it is too expensive) and modern trucks have a greater life expectancy than previously. The truck market is undergoing a process of structural changes. Mega fleets have arisen, absorbing a lot of the medium-sized and small hauliers. For the big fleets the four premium tyre brands Michelin, Continental, Bridgestone and Goodyear dominate. Their second brands are cheaper but good quality nevertheless. At the budget tyre level, brands like Toyo, Hankook or Marshal compete with the third brands of the four big market players for 15 percent of the market.
Continue ReadingTyreCheck 2001 In Germany
In the course of this years TyreCheck in Germany during May, 1.3 million cars were checked (previous year 200,000). 4 per cent of tyres had a tread depth below the 1.6 mm minimum, while another 15% had tread depths near to 1.6 mm. The TyreCheck, which was also carried out in other European countries, is designed to increase awareness of tyre safety. The German tyre dealers association (BRV, Bundesverband Reifenhandel und Vulkaniseur-Handwerk) described the participation of its members as disappointing, but the car testing organisations (TUV, Dekra, GTU) demonstrated a very high level of involvement.
Continue ReadingPolyurethane Tyre Manufacturer In Share Exchange
KIK Technology Inc, of Oceanside, California has been taken over in a share exchange by Russian Imports Inc. KIK Technology Inc, is a profitable operator in the growing off the road tyre market and offers an extensive range of patented, flatproof, micro-cellular polyurethane products. The company is currently concentrating on healthcare, industrial and recreational markets, but expects to see expansion of its market through a three-year strategic development plan.
Continue ReadingDeal Expected between Goodyear and Pacific Dunlop
Beleaguered Pacific Dunlop is expected to announce job cuts in a restructuring of its joint venture tyre division. It is also expected that Pacific Dunlop will announce plans to withdraw from the tyre venture, leaving Goodyear the controlling influence in the business. This comes as the group is about to release its latest profit figures which are expected to show a collapse in the performance of the tyre joint venture, Southern Pacific Tyres. Pacific Dunlop CEO, Tony Daniels, has so far declined to comment, other than to say that the JV partners were committed to manufacturing in Victoria, Australia.
Continue ReadingBig Orders For TRW
Automotive supplier TRW has received orders worth 900 million US-Dollars from Renault (for the Megane) and Fiat (for the Stilo), concerning the production of Electrically Assisted Steering systems (EAS) for this year and beyond. These new contracts bring TRWs volume for EAS-systems in 2001 up to 500 million US-Dollars. The steering-systems for Fiat will be developed in Birmingham and produced in Livorno (Italy). The steering system for Renault will be developed and manufactured in Pamplona (Spain).
Continue ReadingHow Far Will Pirelli Shares fall?
The engagement with Telecom Italia has become an expensive adventure for Pirelli. Because telecommunications have fallen from favour on the stock markets the shares are rated even worse than those of automotive companies and analysts do not agree with Pirellis change in strategy. Pirelli shares are in a deep fall. This just as the so much abused tyre division presents admissible figures in a very hard market.
Continue ReadingImproved Sales And Profit For Nokian
Nokian has released interim financial figures for the first nine months of this year. These show an increase in net sales of 7.4 per cent to 277.7 m Euro and an operating profit of 25.3 m Euro (11.9 m Euro for the same period last year). Net profit reached 9.1 m Euro (2.7 m in 2000). Nokians target for the year is to achieve a sales growth of around 10 per cent and improve on last years profitability.
Continue ReadingCanadian Successes For Goodyear
Every year, Canadian automotive journalists carry out a series of driving tests, after which they name their car of the year in various categories. In the 2001 awards, 10 out of 15 car and truck category winners were fitted with Goodyear tyres. Wayne Barnes, president and CEO of Goodyear Canada, said that the results underline the way the company works closely with OEMs to achieve better vehicle performance.
Continue ReadingNew High-Performance Tyre From Continental
Recently in Barcelona the tyre manufacturer Continental introduced its new ultra high performance tyre ContiSportContact 2 to the press. And just like its predecessor, ContiSportContact 1, of the ContiPremiumContact important aspects of the new tyre have been created according to nature, as both the new, highly efficient tyre tread mixture and the bionic shape have been modelled on nature. Geert Roik, leader of the passenger car tyre development, explains, that it was the first time that a tyre has been prepared following the design of a spiders web, which is both elastic yet firm. The shape has been modelled on a cat’s paw. However, it has always to be remembered that however high the engine performance, its output will be transmitted to the ground over a contact area of a size of four-postcards. The constant improvement of the power transmission over these four small areas in order to adjust it to existing or intended vehicles, develops the tyre engineer’s skills. According to the manufacturer, the ContiSportContact 2 will be a sport tyre, developed on the latest state-of-the-art basis and designed for existing and future high-performance vehicles. According to Dirk Gentgen, Continental’s marketing director for passenger car tyres in Europe, a durable and increasing market is developing because increasingly, tuning and fashion will not stop at tyre selection. Many car drivers think that wide and fashionable tyres as well as fashionable rims are necessary for a sports car to be beautiful. Gentgen is stating the target: In this segment we want to decisively increase our market share in the coming years.
Continue ReadingHeavy Fines For Scrap Tyre Abuse
In January, two men pleaded guilty at Worcester Magistrates court to charges relating to the illegal dumping of scrap tyres in a case brought by the Environment Agency. The two men were fined a total of £12,250 and ordered to pay costs of £5,500.
Continue ReadingTyre Pressure Sensors To Be Standard On New Explorers
Ford has announced that tyre pressure sensors, which alert the driver when a tyre loses pressure, will be fitted as standard on its 2002 Explorer SUV and on other models from 2005. The company says that fitting the sensors is merely one element of a series of improvements and safety features on the vehicle.
Continue ReadingTanzanian Government Restricts Import Of Tyres
The Tanzanian Government has restricted the import of tyres in a protectionist measure. A spokesman said that businessmen have been taking advantage of consumer ignorance by importing cheap, sub-standard products and also used tyres, which is illegal. This has threatened the countrys only domestic tyre factory, General Tyre (EA), which has been unable to sell all of its annual production of around 330,000 tyres.
Continue Reading2000 Figures From Michelin
Michelin has released sales and market details for the year 2000. Consolidated net sales rose 11.9% to 15.396 bn Euro (1999: 13.763 bn). Growth in the 4th quarter was slower than the previous nine months. For the year, European V/Z car tyre sales rose 41.6% in a market which grew by 13.3%. European truck tyre sales rose 1.7% in a flat market. In the USA, 4x4 and light truck sales rose 27.7%. Financial results will be made public on 27 February.
Continue ReadingDivestment For Pacific Dunlop
Pacific Dunlop has announced it is to withdraw proposals to split its business into two independent publicly listed companies. The company told the Australian Stock Exchange it has decided to explore options to divest elements of the business and has appointed Deutsche Bank AG to assist. A profit warning for the second half to June 2001 was released, expecting profit to be up to 30 per cent lower than first half results.
Continue ReadingFleet Contract For Bridgestone/Firestone UK
Bridgestone/Firestone UK has won the contract for the sole supply of tyres to the BRS commercial vehicle rental fleet. The fleet consists of around 3,000 vehicles, ranging from 3.5 tonnes to 44-tonne tractor units and will now follow a policy of using Bridgestone new and retread tyres. The three-year contract was won against fierce competition and it is the first time that BRS has used a single tyre supplier. The contract will be serviced through Truck Point, the 220-depot organisation of independent tyre dealers established by Bridgestone/Firestone UK.
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