Brakes And Clutches
Does your depot offer a brakes and clutch service, or do you regard yourself as a tyre supplier pure and simple? If you dont offer such a service, you could be missing out on profits.
Continue ReadingBack To The Land
Agriculture in the UK has suffered over the past few years, with the foot and mouth crisis and farm incomes falling. Farms have grown larger as people have left the business and farms have been amalgamated. Machinery has become more powerful and harder-working and the tyre manufacturers products have changed to accommodate this. The scope of agriculture has widened as new machines appear on farms - backhoe loaders, ATVs, forklifts etc. We look at some of the tyres available and at the industrys premier showcase, the Smithfield Show.
Continue ReadingKirkby Tyres: Re-focusing For The Future
Kirkby Tyres is a major wholesaler in the agricultural sector and is increasingly turning towards that market to develop its business. Kirkby Tyres has been around for a long time, almost 50 years in fact. In that time the business has seen many changes but through all the changes it remains in the hands of the Rosenthal family, with Gordon Rosenthal, grandson of the founder Joe Rose at the helm. The company started as a casings collector and dealer, before developing into wholesaling. When the wholesaling of new tyres outgrew the casing side, the company made the decision to concentrate on new tyre distribution. Gordon Rosenthal took over from his father, Leslie Rosenthal, as Managing Director in 1980. Gordon is now Chairman, with Dave Dorrity joining the company in 1999 as Managing Director. Kirkby Tyres operates with three depots to cover the British Isles. The head office is at Liverpool and there is a depot in Perth, Scotland which offers a very similar stock profile to that in Liverpool, though the demand for high performance and premium car tyres is stronger north of the border. Ireland is covered from Dublin by Kirkby Tyres (Ireland) Ltd and in addition to the full range offered in the UK is the Irish agent for Ohtsu/Falken, and is the sole distributor of Wolfrace and Smiths alloy wheels in Ireland. The Group has a turnover in excess of 16 million pounds and employs 61 staff. It is worth noting that the breakdown of the business puts the agricultural sector at 45 per cent of the Groups turnover, truck at 35 per cent, and car and earthmover at five per cent each.
Continue ReadingShanghai Tyre & Rubber Company Limited: Double Coin
Along with the dawn of the 21st century, Shanghai has very quickly become the international economic trading capital of China. The city is the showcase of reform, increasingly attracting foreign investment in new business enterprises. Just outside the city centre is the industrial district of Min Hang and this is home to Chinas largest tyre producer, Shanghai Tyre & Rubber Company Limited. The Shanghai Tyre & Rubber Company was incorporated on 4th July 1992. It was restructured from the two oldest tyre manufacturing plants in China, both having a history stretching back over seventy years, the Ta Chung Hua Rubber factory and the Tsen Tai Rubber factory. In the early 1930s these two tyre producers first established the brand names Double Coin and Warrior. In September 1998 a joint venture was agreed with First Tractor Group of China to produce agricultural tyres, expanding the existing capacity by nearly 50 per cent to 900,000 tyres and consolidating its access to the agricultural market. In the same year the company completed a $95 million US dollar expansion programme at the Min Hang factories. Weak domestic demand and the Asian crisis did see a downturn in profits as the decade came to an end, at the same time, selling prices were cut by ten per cent in order to compete with some foreign, and particularly South Korean, tyres. This was a setback, but no more than that. The company has shown itself to be extremely perceptive and very determined. Within the Shanghai Tyre Company today there are three principal tyre producing factories. An all steel radial truck tyre plant manufacturing the Double Coin brand, and a passenger and light truck tyre radial factory producing the Warrior brand; this plant has been a joint venture with Michelin since March 2001. Finally, a bias-ply plant manufacturing passenger, truck, a massive range of agricultural, off-road, industrial and motorcycle tyres in a total of over 350 specifications. The company is the 15th biggest tyre producer in the world, employing over 11,000 people.
Continue ReadingHiperImperio: Portugal’s Rising Star
The Imperpar Group has been founded on the tyre business and tyres accounted for around 70 per cent of the Groups gross revenue in 2001. Consequently, HiperImperio is the core element of the group though Managing Director António Barros dos Santos expects to see the emphasis gradually change by 2004. Tyres will remain the core business at 60 per cent of revenue, but other sectors of the business are expected to grow at a greater rate. The key targets for the tyre business will be to develop market share in the Iberian Peninsula, particularly in Spain. He sees no immediate overseas investment. Development will be undertaken by acquiring existing independent businesses. Dos Santos: We also have a franchise operation. These Club Auto Box outlets are not owned by us but are effectively controlled by us. There are currently about 20 Club Auto Box franchises and this is another sector through which we can expand. We also have 12 new shops opening in the New Year throughout Portugal. Our retail presence in Spain is spread with three outlets in Galicia, one in Valladolid, three in Madrid, 5 in the Balearics and 12 in the Canarians Islands. But there is still room for a great deal of development in the Spanish market. We sell to over 300 dealers throughout Portugal and 100 in Spain. HiperImperio has also introduced its own brand passenger car tyre under the Rolltec name, produced by a global tyre manufacturer to international standards. Currently, there is a restricted range of fast moving sizes but the range is expected to expand in the coming year. HiperImperio uses this brand as its own in Portugal and sells it exclusively through its own outlets. However, its own distribution companies sell the brand on a global scale and it is available to other distributors in European markets for national distribution through Europe as a private brand. The business was built around the retread industry and astute business development has taken the Imperpar Group from carcasses and retreading to a multi-discipline business playing on a global market. However, retreads still play an important part in the Groups development and although there is currently less emphasis on retreads in the tyre division than there has been in the past, retreads still account for some 15 per cent of revenue.
Continue ReadingInsa Turbo: The Spanish For Retread
Anyone in the tyre business who has spent holiday time in the South of Spain will probably have noticed the branding of Confort Auto - the red, yellow and black logo emblazoned across the frontage of the white and black tyre depots along with the eagle logo and the Grupo Soledad inscription. They may not have realised that, with 57 workshops, Confort Auto is the largest independent fast fit operator in Spain. They may not have made the connection with the retread industry either, for the parent company of the Confort Auto brand is Grupo Soledad, which is also the owner and manufacturer of the Insa Turbo retread brand of truck and car tyres. Given the poor reputation of retread tyres in the UK market it may be difficult for some to reconcile a retread operation with the modern and professional approach of Confort Auto. However, the history of the company runs deeper still. The retreading division is based at Aspe outside Alicante, and the operation has grown on this site gradually expanding to take in more and more of the available space here. There is a great deal of development in the area and further expansion is planned in the near future, with a new warehouse at an industrial site a few kilometres away. This will create space at the Aspe plant for further developments.
Continue ReadingJ. K. Tyre – 25 Years Of Leadership
Indias largest four wheeler tyre manufacturer celebrates its silver jubilee. J. K. Tyre is a division of J. K. Industries, which is itself a flagship company of the J. K. organisation; one of the largest industrial groups in India. As well as tyres, the groups manufacturing activities include paper, cement, textiles, hybrid seeds, cosmetics, power transmission - the list is as varied as it is extensive. J. K. Tyre was established in 1977 and has established itself as Indias number one manufacturer of tyres for four wheel vehicles under the JK Tyre and Vikrant brands. In this sector, J. K. Tyre claims a domestic market share of 20.8%. In the truck and bus tyre market, which accounts for around 80% of the Indian tyre market by value, J. K. Tyre claims a market-leading 25.8% share. In 1997, J. K. Industries took a major strategic decision to acquire Vikrant Tyres Ltd., an ailing tyre manufacturer. With the input of J. K. Tyres expertise, systems, marketing and work practices, Vikrant achieved a remarkable turnaround, returning to profit after only ten months. Today, J. K. Tyre has four Indian production facilities, with a capacity of 5.5 million tyres. This growth is set to continue, with production over the next two or three years rising to some eight million tyres. The company also boasts Indias first, and only, all-steel truck and bus radial plant. Being a pioneer of radial technology involved J. K. Tyres in a great deal of hard work and effort to spread the word about the benefits of radials, but this has been rewarded as the J. K. Tyre brand is strongly associated with radial tyres. The companys marketing strategy was focused on offering high performance radials with service being the brand differentiator. One aspect of this was the establishment of a chain of retail outlets, offering a one-stop sales and service centre. Going under the name Steel Wheels, there are more than 100 such outlets in India and J. K. Tyre claims that they have revolutionised tyre retailing in India - offering services such as wheel balancing and alignment and advice on tyre care by well-trained technical staff. Another marketing initiative is the Dial-a-Tyre service, which allows customers to have tyres delivered and fitted in the comfort of their own homes. This is the latest in a line of innovations, which includes Indias first T-rated tyre, the first H-rated tyre and the countrys first Dual Contact tyre, the Aquasonic. The company manufactures a range of tyres to suit all four-wheel applications, from cars to trucks and buses, agricultural vehicles and tractors, plus there is also a range of tyres for animal-drawn vehicles. Both radial and bias ply tyres are produced.
Continue ReadingU.K. Record Sales of New Cars in 2002
New cars sales on the U.K. reached a record last year after breaking through the 2.5 million barrier, reported the Society of Motor Manufacturers and Traders. Sales increased 4.3 percent over the year to 2,563.631, worth an estimated 33.3 billion GBP. The Ford Focus was Britains top selling new car for the fourth year in a row.
Continue ReadingInsurance – A Change Of Policy?
Insurance for all in the tyre industry is fast becoming a major problem. Legislation and an increasingly litigious society make it advisable to have the best cover you can, but its not always that easy. Premiums have shot through the roof as insurance companies are affected by the downturn in the stock market - it seems that the tyre industry is one sector whose business the insurance companies dont want. Insurance was one of the topics debated at last years NTDA conference, but if retailers think its difficult to get cover, spare a thought for the poor retreader.
Continue ReadingFord in 51.1 Million Dollar Settlement Over Advertising
Ford, last week, reached a settlement with Tennessee Attorney general and 52 other jurisdictions regarding alleged deceptive trade practices relating to the sales of Ford SUVs. The Attorneys alleged that Ford failed to disclose a known safety risk concerning tyre failures with certain Firestone ATX and Wilderness AT tyres which came equipped on some Ford SUVs. The State also alleged that Fords advertising misled consumers as to the safe use of Ford SUVs. Other allegations included certain aftermarket tyres sold through Fords Around the Wheel program were the same tyres as the tyres that came equipped on Ford SUVs when that was not true. Ford denied all such allegations. However, they have agreed to settle nonetheless.
Continue ReadingGoodyear “Disappointed” At Rating Downgrade
Goodyear president and COO Robert Keegan said the company was disappointed at the decision of Standard & Poors Rating Services to lower its rating of Goodyears debt by two degrees, from BB+ to BB-. This is the minimum rating required as a condition for borrowing in some cases. Keegan said that Goodyear was fundamentally sound and that the companys plan to improve operational and financial performance was on track, adding that 2003 will be a transition year for Goodyear.
Continue ReadingGoodyear PAX System On Show
A concept car fitted with a Goodyear PAX system will be one of the vehicles on show at the North American Auto Show, to be held at Detroit later this month. The tyre, resulting from the joint venture with Michelin to develop the PAX system, is one of more than two dozen concept tyres that Goodyear will be highlighting at car shows during 2003. Concept tyres are more than just a bit of fun - Goodyears Aquatred, which had a deep, circumferential aquachannel groove, first appeared as a concept tyre in the 1980s. It was redesigned for the road a decade later by tyre engineer Sam Landers, who now heads Goodyears runflat development team, which includes the PAX project.
Continue ReadingGibara Misses Last Opportunity As CEO
Within less than a week our office has obtained eight links giving access to an electronic letter from Sam Gibara to all Goodyear associates. Gibara restated that as from the 1st January, Bob Keegan has taken over as CEO and that he remains as Chairman of the Group. Gibara looked back at the past year which he described as marked by wins throughout Goodyears world and he speaks of foundations established for future success and of opportunities seized, none of which would have been possible without the associates support. He adds, You are making a difference and our company will prevail because of you. With a degree of bitterness some of these associates said that Gibara had ultimately missed the opportunity to explain why the company is in such deep water. They point to the fact that Gibara has never shown any sign of admitting have made mistakes himself. Instead, it was always the economy, the environment, the exchange rate, the high costs of raw materials and so on. However, he has not convinced the associates, many of whom feel that it is a big mistake to play down big problems. The staff is willing to fight, but needs guidance. If indeed the company has the best brands, great distribution and the best people, why then is the company fighting with its back to the wall whilst its big competitors are making money?
Continue ReadingMichelin Tops UK OE J D Power Study
The 2002 J D Power UK original equipment tyre satisfaction study has named Michelin as top performer, for the fifth year running. The survey asks more than 2,500 UK motorists to rank their OE tyres in a number of categories; quality/durability, appearance, traction, ride/handling and effect on fuel economy. Michelin achieved top ratings in all sectors. Continental achieved its highest-ever ranking, coming second, scoring well on traction, ride/handling and fuel economy. Goodyear came third, with an index score at the industry average level.
Continue ReadingCooper Third Quarter Sales And Profits Up
Cooper Tire & Rubber has reported its third quarter figures. Net sales were up 6 per cent to $839 million (3Q 2001: $791 m). Operating profit was $55 million and net income was $23 million, 28 per cent up on the 3Q 2001 figure of $18 million. Comparing the first nine months with the same period last year, net income rose 87 percent, from $47 m to $88 m, while operating profit was $195 m, compared to $137 m. Coopers tyre sales in North America declined by one per cent during 3Q, but this compared to an industry decline of nearly 8 per cent. Operating profit for the tyre group in 3Q was $27 m. This compares to a loss in 3Q 2001 of $9 m, but this figure was affected by charges related to a proposed class action litigation settlement.
Continue Reading