Ford Ambitious to Become Largest Tyre Marketer in USA
American trends, schemes that have proved successful on the other side of the big pond, will spill over to Europe after a short delay. That has always been so. So watch out for the letters FCSD and remember that they stand for Ford Customer Service Division. The car giant has just started a strong advertising campaign in North America, introducing to the public America’s Newest Tire Store, a network of 2,400 of the current 5,000 Ford and Lincoln Mercury dealers. According to a Ford spokesman, this is the latest step in providing customers with everything they really need, and all at one stop. The Ford and Lincoln dealers, he claimed, have suitable business premises, sufficient relevant expertise and the scope to offer competitive prices – with the express advance warning that Ford has no intention to be cheap but will market tyres at a fair price. Tyre manufacturers build tyres to Ford specifications, the spokesman explained, and it would therefore only be a natural progression for the company to market original replacement parts. Thus only original equipment suppliers will be able to take part in the Ford replacement business. To give the project a kick-start the company currently runs a lavish and expensive TV campaign (costs are not disclosed), later to be supported and partly replaced by radio advertising and direct mailing. Carl Bergmann, Customer Service Operations Manager, can see no point in sending customers away in future when they want to buy tyres. And these are certainly not empty words: In July 1998 the Ford organisation sold a mere 700 tyres, the figure for this July was 97,000, and that is only a start. The sales target for the current year is one million tyres, three million in the year 2000, to be doubled again to six million units in 2001, at least according to a Ford Motor Co. spokesman talking to the press. These are large numbers indeed, but not unrealistically so, because if each of the currently participating 2,400 dealers only sells one set of tyres per day, the three-million barrier will be breached.
Continue ReadingMichelin Reaps Benefits of Bridgestone and Goodyear Mistakes in the USA
The current winner in the American car tyre replacement business is Michelin. On the one hand, the French profit from the catastrophic supply situation of their two main competitors, Goodyear and Bridgestone, which achieve so-called fill rates of 60 p.c. or even less, but they also reap the benefits of the successful introduction and implementation of their multi-brand strategy, which has made a demand management possible. In contrast to their big competitors the French have a very clear brand policy with no further differentiation within a brand, and they no longer produce private brands, all of which considerably shortens the reaction time to changed market conditions. Goodyear and Bridgestone cannot achieve Michelin prices. The groups will not improve their unsatisfactory fill rates as long as they also manufacture large quantities of private brands. The Japanese cannot develop a multi-brand strategy since they lack a strong leading brand – Bridgestone not being blessed with a high degree of brand awareness everywhere in the USA. For a long time the Americans differentiated very strongly within the Goodyear brand; now they have to position Dunlop tyres as well. That will also mean the need for significant investment in the brands. Furthermore, Goodyear managers in particular are currently confronted by a hostile gut reaction from the trade, whether capable of rational explanation is neither here nor there.
Continue ReadingTechnic Ceases Trading
The Technic Group - at one time the worlds biggest passenger car tyre retreader - is the latest company to succumb to the fall in demand for car retreads. Hopes that the Technic group would be sold as a going concern proved to be unfounded. The Administrative Receiver said: Since we were appointed, the company has continued to accumulate losses. Despite some early indications of interest, no offers were received for the business and we can see no realistic prospect of receiving an offer against a difficult background in the retread market. As a result we have no option but to close the business. 200 of the 250 employees have received redundancy notices and the Receivers will seek to dispose of the companys assets.
Continue ReadingGoodyear revises wrong decision regarding the Gadsden Plant in Alabama
The company anticipated a reduction in demand and took the decision to cut most of the production capacity of its Gadsden plant. Only a few months later Goodyear is forced to immidiately employ 500 - 550 workers to meet the demand for Goodyear tyres in the USA.
Continue ReadingCooper to purchase Siebe’s Automotive Devision
Tyre manufacturer Cooper Avon wants to buy Siebe’s Automotive Devision. According to present information Cooper has to pay 244.5 million US-Dollar for the company which belongs to the British Invensys group.
Continue Reading“Blue Angel” for Dunlop Tyres
Dunlop’s SP Sport 200 E has been given the Blue Angel quality seal of approval for nine sizes. The Blue Angel adheres to very strict guidelines and is especially for environment-friendly products and processes whose user qualities and safety aspects are in no way inferior to conventional products. Recipients are chosen by independent institutions. This new car tyre (speed indices H and V) is awarded the eco seal for qualities such as low noise level, the light weight of the product, fuel saving and reduced emissions thanks to its optimised rolling resistance. Dunlop’s winter tyre SP Winter Sport M 2 is currently being tested for exceptional environment-friendliness.
Continue ReadingBBS Wins Court Case Against Competitor
Three years of litigation about breach of styling rights and unauthorised copying in accordance with paragraph 1 UWG (law on unfair competition) have ended with a verdict in favour of BBS by the Federal Court of Justice, so announces the wheel manufacturer. BBS had sued an Italian manufacturer for producing and distributing an imitation of the BBS RX wheel and for damages. Following the defendant’s reply, an expert opinion on the design and a hearing at the provincial law court in Frankfurt the BBS case was to a large extent conceded: The wheel made by the Italian producer was declared to be an imitation of the new BBS RX wheel, which is new, original and therefore protected. There followed an appeal, several postponements and the exchange of a number of documents at the higher provincial court in Frankfurt, and then this verdict: The appeal of the Italian manufacturer was rejected; there was no serious doubt that it was a copy, and appeal to the Federal Court was not allowed. The costs have to be borne by the appellant. Therefore the verdict of the higher provincial court in Frankfurt of 19th November 1998 has the force of law.
Continue ReadingSüdrad Goes to Mefro
Four years ago Südrad Autoräder GmbH und Co. KG had to call in the receiver, who in the meantime sold the aluminium wheel division of the company. Now the steel wheel production at Ebersbach has also found a new owner in the guise of Mefro Räderwerk Ronneburg GmbH. In 1999 Südrad with 600 employees will produce approximately five million car steel wheels as well as steel wheels for trucks and light trucks. The turnover is given as 140 million marks, and Südrad is back in the black now that the restructuring measures have been completed. Mefro had its origins in a wheel combine of the former GDR and now has an annual production of approximately two million steel wheels for agricultural and construction site vehicles as well as for industrial vehicles and fork lift trucks. With a workforce of about 220 employees Mefro has an annual turnover of approximately 60 million marks.
Continue ReadingNissan Plans To Close Four Factories in Japan
Nissan has confirmed that it is currently producing 1.35 million cars, which is 10 per cent less than last year. This amounts to the companys seventh recorded loss in the past eight years. C.O.E. Carlos Ghosn, who engineered the turnaround for Michelin in North America, is currently preparing a restructuring plan which will entail the loss of 21,000 jobs, or 14% of its worldwide workforce, by the year 2003. In the US, 1,000 jobs (10%) will go by March 2001, while in Japan, there are plans to close four factories.
Continue ReadingPrice Collapse For Winter Tyres
Good news for motorists: Tyre prices are coming down fast, especially in popular sizes. So far we have heard of price reductions of up to 15 p.c. compared with the previous season. Unknown second and third lines of large groups compete for the bargain hunter with rock-bottom prices.
Continue ReadingContinental Teves to go east
The car brake production of Continental Teves is to be moved to Czech Republic. At present no-one from Conti Teves was available for comment.
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