Achim Saurer becomes New Sales Director of Vredestein Germany
Achim Saurer, who worked for Bridgestone, joins Vredestein Germany from 1st January as successor to Günter Nohr who is taking early retirement early in 2000.
Continue ReadingKarl-Friedrich Schmidt Moves to Goodyear Group Headquarters
Karl-Friedrich Schmidt (59), previously Fulda manager with Europe-wide responsibility for Manufacturing Efficiency and Information Systems, took over as Director Global Manufacturing Efficiency of the Goodyear parent company with effect from 1st October. In this new function he reports directly to Goodyear’s world headquarters in Akron/Ohio, where he will also be based. My principal aim is to raise the efficiency and profitability of all Goodyear production facilities worldwide, said Schmidt. K.-F. Schmidt began his career with the group in 1983 when he joined Gummiwerke Fulda as Manager Industrial Engineering. In 1986 he moved to the personnel and welfare department with the rank of Deputy Managing Director. Four years later he became Manager Organization Effectiveness Europe for group divisions not directly product-related. He held his most recent position since 1993, during which time he was responsible for the integration of company acquisitions, among others Debica (Poland), Sava (Slovenia) and the repurchase of Goodyear South Africa.
Continue Reading“Agritechnica ‘99” – a Record
From 9th to 13th November 1999 all eyes of Europe’s agricultural industry were again on Hanover, where the eighth (since 1985) international DLG trade fair for agricultural technology, Agritechnica ‘99 was held on the site of the future Expo, the third time in succession at this venue. The German Agricultural Society (DLG) as organisers reported an impressive number of bookings: 1,500 companies in total (531 of them from abroad) presented a complete agricultural programme at the Hanover exhibition centre, an increase in exhibitor numbers of nearly 14 p.c. over 1997, the date of the last such fair. The total exhibition area was also extended by almost 20 p.c. since 1997, to 190,000 square metres. Agritechnica also reported the strong presence of the tyre industry, led of course by the Big Three in the tractor field, Michelin, Kléber and Pirelli (the latter now under its new name Trelleborg Wheel Systems), which in the last few years almost carved up the lucrative original equipment business in tractor drive-wheel tyres between them. Now other suppliers, Continental, Goodyear, Firestone and Taurus try to muscle in on the OE business. With the sole exception of Firestone they were all present at Agritechnica, as were Vredestein, Alliance, Danubiana (Tofan Grup) and Titan.
Continue ReadingPeter Giffhorn leaves Volkswagen
Peter Giffhorn, head of sales for the VW brand in Germany, will leave the company. Hans-Ullrich Sachs who is responsible for overall VW brand sales, will take on his responsibilities.
Continue Reading“Serious Tyre Failure” and “Sea of Troubles” Between Continental and Semperit
The Semperit factory at Traiskirchen is facing a cut in car tyre production from the current 2.9 million to 1.4 million units next year. That will put a big question mark over the efficiency of the plant. The works council fears erosion and medium-term closure; well above 100, if not up to 250 jobs will have to go. The threatened workforce is determined to fight this unequal treatment with all the means at its disposal and, if necessary, to create a sea of troubles in public. Whether that can put right the many shortcomings of the past we shall have to wait and see. Cross-border solidarity between fellow workforces is not apparent.
Continue ReadingNokian: Turnover Up 20% In First Nine Months Of 1999
Finnish tyre manufacturer Nokian has achieved a net turnover of 199 million Euros in the first nine months of this year; an increase of around 20 %. Operating profit is 18.4 million Euros (9 % lower than the previous year). Nokian is pursuing a strategy of expansion and, this year, will invest some 31 million Euros, with the aim of increasing production capacity by 50% within five years. At the moment, Nokian is trying to purchase ISKO, Finlands largest tyre dealer with a turnover of approximately 65 million Euros. Analysts say that ISKO is financially very strong and very profitable.
Continue ReadingRumours about Continental/Pirelli Joint Venture Nothing but Red Herrings?
Although a joint venture between Continental and Pirelli could make sense in the tyre sector, observers do not believe it. The Italians, in any case, deny it vehemently. While the German group is still recovering from the enormous effort of the Teves acquisition, the Italians are about to concentrate more on entering the real estate business. An extremely nervous reaction came from Pirelli Reifenwerke managers, who do not like such talk in the market, especially since they have enough to do looking after themselves. Sales boss Röske speaks in eloquent terms of the lustre of the Pirelli tyre brand that makes his team’s eyes shine. The brand, he says, is stronger than our customers sometimes want to give us credit for. In Röske’s opinion Continental may perhaps have tried to throw dust in people’s eyes to divert attention from a potential takeover by Bridgestone. This magazine rather thinks that Conti boss Kessel wants to avert the public gaze from talks with the telephone group Mannesmann, which is possibly ready to part with its automotive division.
Continue ReadingToyota Aiming for 10 Per Cent Market Share in China
Toyota is aiming for a ten per cent market share in China within five to ten years. The Chinese market is characterised by over-production, price wars and low margins.
Continue ReadingKrupp Elastomertechnik: One-Stop Shop
Krupp Elastomertechnik was created in 1996 by the merger of the company Werner & Pfleiderer Gummitechnik in Freudenberg and the rubber technology division of Krupp Kunststofftechnik. Thus two companies were united which, by their own admission, had cooperated in technology for a long time. This offers the rubber processing industry the opportunity of a one-stop shop, as it claims to a large extent to cover all essential preparation and process stages. According to Krupp, all machines, facilities and systems are the product of computer-aided development and construction on modern machine tools and manufacturing facilities and are installed and thoroughly checked before being handed over. In the recent past various new and advanced developments at Krupp Elastomer GmbH were particularly aimed at consolidating and improving the market position of the company. Largest market shares overall are held in Europe, but that does not mean that other regions of the world are less important to the company. For example Asia, which has so far produced 40 p.c. of the total turnover. At present this market is not too prosperous although there are a few positive signs, but that deficiency was almost made up by comparatively good sales in Europe, since the boom in the motor manufacturing industry and therefore in tyre production also benefits machine manufacturers. For the current year further growth in tyre sales figures is generally expected, at least in Germany. That should herald a bright future for machine manufacturers in the tyre industry, shouldn’t it?
Continue ReadingNot many years ago
Not many years ago the large tyre manufacturers still thought they had better make haste and claim a stake in the apparently huge markets of China and India, since life does not favour latecomers. Their enthusiasm was kindled by the example of some car manufacturers, which quickly calculated and estimated a gigantic (sales) potential in these two countries alone with their joint populations of two billion. Some car manufacturers learnt quickly that opportunities are not limitless. Tyre manufacturers fared similarly. Pirelli supplied China with some know-how, which was gratefully received but did not provide Pirelli with a strong base. Nor did the Italians make money out of the technology transfer. Conti’s big plans for India are hardly mentioned any more. The Big Three – Goodyear, Bridgestone and Michelin – are present in both countries, but business is quiet. In India, 29 manufacturers run 41 factories with a maximum capacity of about 43 million tyres, but only 34 million pieces were manufactured in 1997/98, most of them (73 p.c.) for trucks and buses. And 60 p.c. of passenger car tyres are still cross-ply tyres, 1998 has only seen 3,3 million radials in this segment. Our British sister magazine TYRES &ACCESSORIES reported on the Indian tyre market at length; we publish an excerpt in this issue in our December issue, including a brief presentation of some individual companies active in this market.
Continue ReadingFord 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.
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