Tyres for the “King’s Class” – Bridgestone’s Formula One Engagement
It is a well-known fact that Bridgestone does not stint itself in its Formula One commitment. For instance: The number of tyres carted to every race is 2,640 in two different compounds for dry and three different compounds for wet weather. Together with the costs of research and development plus marketing/advertising (which definitely accounts for the highest expenditure) it may amount to a nine-figure sum. In this context one has to ask: Cui bono? Or: Why do the Japanese involve themselves in Formula One at all? The current market share of the tyre giant in Europe is estimated to be about twelve per cent, therefore leaving room for further growth. And what would be more suitable for a Far Eastern tyre group keen to catch up in the lucrative European market than its omnipresence in the most important motor racing event worldwide (only in USA Formula One is met with relatively little interest)? When all is said and done: twelve of the 16 races are run on European soil. Takeshi Uchiyama, Managing Director of BS/FS Europe, describes his company’s objective, We are determined to raise our global brand awareness.To put it simply: If the Bridgestone logo is clearly visible every fortnight adorning streamers, bridges, vehicles, overalls, drivers’ caps and, last but not least, all the tyres, that must sooner or later penetrate the memory or consciousness of the mass media public. Ideally it also raises significantly the image of the brand as a low-profile quality tyre. And once this perception takes hold and people’s high opinion is tranferred to other segments, this reputation will not only benefit the high-performance segment but also other types of tyre.
Continue ReadingPirelli’s Nine Months Results
Pirelli has published its figures for the first nine months of 1999. Turnover is up 15%. The Cables and Systems sector turnover was 2,805 million Euros (first nine months of 1998 2,036 million) while the Tyre Sector turnover was 1,917 million Euros (2,068 million). Gross operating profit was 489 million Euros (492 million) and consolidated operating profit was 231 million Euros (264 million).
Continue ReadingScrap Tyre Recyclers Meet in Schwerin to Find Feasible Solutions
Under the headline Recycling von Altreifen in Deutschland – Aktuelle Lage und Möglichkeiten für die Zukunft (Scrap Tyre Recycling in Germany – The Current Situation and Future Possibilities) a two-day conference was held in the banqueting hall of Schwerin Castle in mid-October. Joint hosts of the first meeting of this kind on German soil were the Mecklenburg-Vorpommern Ministry of the Environment and the European Tyre Recycling Association ETRA. The conference in Schwerin is part of a series of European meetings organised as Regional Information Briefings by ETRA for the airing and discussion of current questions and problems in the tyre recycling industry with the object of eventually finding common solutions. The programme was opened with a presentation covering the current situation of the scrap tyre recycling industry in Germany. This was followed by reports/discussions on the current state of the recycling technology as well as the opportunities for opening new markets for recycled scrap tyre products, in which almost 100 experts from the areas of tyre trade and disposal, retreading, material extraction, construction industry/road building, technology, equipment industry, waste disposal took part together with representatives of the civil authorities. In the course of the conference it became clear, however, that there was still a widespread lack of technological know-how and a considerable ignorance about how to market the recycled products. One reason is a limited demand for such products, another a lack of innovative and worthwhile product ideas and of adequate marketing concepts.
Continue ReadingHankook Tyres “Made in EU”?
Talking to the German newspaper Handelsblatt, Hankook President Choong-Hwan said that the Korean tyre manufacturer wants to strengthen its market position in Europe. Having already expanded with two factories in China, Hankook plans to produce tyres in the EU as well. This will be achieved either by building a new factory or acquiring existing facilities.
Continue ReadingEarthquake in Turkey Affects Tyre Industry
The tyre factories of Brisa (Bridgestone/Sabanci), Pirelli and Goodyear are all situated within a few hundred metres from one another along a road leading out of Izmit, the town so severely hit by the earthquake. Bekaert also has a production facility nearby, Continental manufactures technical rubber products not far away, and a second Pirelli plant makes cables. It will only be a matter of days until production, only partially interrupted by the earthquake, returns to full strength while the aid campaign has gone into full swing at the same time.
Continue ReadingGoodyear: Gibara Announces New Multi-Brand Strategy
The differentiation within the Goodyear brand, which has been most conspicuous in North America, will soon be a thing of the past. On Thursday Gibara declared in front of analysts in New York that the Goodyear brand will in future only be a premium brand; the group’s range will be complemented by Dunlop (medium brand) and Kelly (economy/budget brand).
Continue ReadingRapid Growth In European Fast Fit
Business analysis specialists Datamonitor predict that the European Fast Fit Market will have an annual growth of more than 4 per cent each year and reach 11 billion Euros by 2004. It is also anticipated that new competitors Ford (who acquired Kwik-Fit) and Fiat (who acquired Midas) will significantly increase their standing in the market during this period.
Continue ReadingContinental Introduces Two New Winter Tyre Tread Patterns
For the launch of its two new winter tyre models, the ContiWinterContact TS 780 and the transporter and van tyre VancoWinter at the beginning of October the Continental AG management chose a very special venue: Iceland. However, a blizzard that raged for days prevented practical tests of the new tyres on the selected glacier. Developers of winter tyres are always faced with the classic dilemma: Do they design for optimum grip on snow or on dry roads? The development of the TS 780 for vehicles of the compact and lower medium classes aimed at reducing the discrepancy between the two objectives. An important innovation is a sipe construction which tries to emulate the architecture of beehives with its honeycomb shape. According to the manufacturer, the honeycomb sipe has clear safety advantages when cornering on snow. A directional tread pattern and the latest silica compound technology are additional features responsible for the new tyre’s good driving characteristics in wintry conditions as well as on dry and wet roads. It is available in all European markets needing winter tyres, initially in 13 sizes from 145/80 R 13 75Q to 185/60 R 14 82T. The VancoWinter was specially developed for medium and heavy vans. Traction on ice and snow is provided by sipes which are incorporated in the tread blocks. To achieve a significant improvement over its predecessor, the LMS 70, the VancoWinter’s sipes and blocks are twice as high. Its behaviour on icy roads is to be improved by distributing the pressure on the ground more evenly. The van tyre is immediately available, at first in nine sizes (from 185 R 14C to 195/65 R 16C).
Continue ReadingBridgestone/Firestone Europe Appoints General Manager OE Sales
Bridgestone/Firestone Europe (BFE) has appointed Mr. Uwe Kaster as General Manager of European OE Sales. He will be based at Bridgestone/Firestone Deutschland. The company says that the appointment has been made in response to its increasing growth with European vehicle producers. Mr. Kaster joins BFE from the Rutgers Automotive Group.
Continue Reading7th VDI Conference on Tyres, Chassis, Roads
The contact area between tyre and road surface is generally compared to the size of a postcard. An area, whose smallness bears no relation to its importance as the central spot where the interaction between motorcar and supporting ground takes place. Generations of experts have thought long and hard how to optimise this A6-sized contact area in the interest of road safety. The 21st and 22nd October saw the beginning of a new round in the eternal quest for more knowledge. On these dates the seventh conference in twelve years of the Association of German Engineers (VDI) took place under the headline Reifen – Fahrwerk – Fahrbahn (Tyres – Chassis – Road Surface) at the Hanover Congress Centre. As at several earlier meetings, the wheel was not studied in isolation but as the link between chassis and road surface. The central theme of the meeting was therefore the interaction between those three components. Each lecture or discussion session consisted of three half-hour presentations grouped together under subject matters such as Reciprocal influences between tyres and road surface, Tyre noise, Measuring and devising models, Warning and run-flat systems, Vibration and comfort as well as Chassis concepts. Almost 225 VDI members from the sectors of research and manufacturing had accepted the invitation. Apart from many car manufacturers the tyre industry was also well represented in Hanover and thanks to the disciplined lecturing techniques and to well-informed and motivated questions from the public the conference was able to live up as a genuine discussion forum to a large extent.
Continue ReadingM+S Tyres Mandatory In Finland
Finland has followed its neighbour Sweden by passing a law which means that, from 1st December to 29th February, all cars in Finland must be fitted with M+S tyres, having a minimum tread depth of at least three millimetres. The law applies not only to Finnish motorists, but to foreign drivers too.
Continue ReadingGratifying Half-Yearly Result for Continental
The management has undertaken an upward revision of the turnover and profit forecasts. Due to increased turnover all business divisions were able to improve their margins, but it seems that General Tire did not entirely come up to the expectations of institutional investors. The Teves result (half-yearly turnover: 1.278 billion euros, EBIT: 27 million euros) came as a pleasant surprise to banking circles. After the first six months group turnover reached 4.449 billion euros, and the EBIT of 263 million euros was roughly ten per cent above expectations. Stock exchange experts value the potential of the Continental share with 25 to 26 euros, which has as yet not been realised. The slightly worrying aspect is the fear that Continental could be lumped together with other, normal tyre manufacturers, e.g. Michelin, Goodyear and Pirelli, which produced rather sobering results.
Continue ReadingGoodyear Pulls Out Of IRL And CART
Goodyear, who stopped supplying tyres for Formula 1 last season, has announced that, from next year, it will no longer supply tyres to the Indy Racing League (IRL) and Championship Auto Racing Teams (CART) in the USA. The company will concentrate on other forms of racing, such as NASCAR. Stu Grant, general manager for global race tyres, said that the decision will be reviewed and that he would not rule out a return to IRL, CART, nor Formula 1 competition.
Continue ReadingConti Boss Kessel Still Interested In Pirelli’s Tyre Division
During an analysts conference in New York, Conti boss, Dr Stephan Kessel, restated his continuing interest in a joint venture/merger with Pirellis Tyre Division.
Continue ReadingRecord Figures for Car Winter Tyres
Approximately 29 million winter tyres will be sold in Central Europe (i.e. without Scandinavia) this winter. In Germany alone the figure will be well in excess of 16 million units (55 p.c.). Germany’s motorists will spend about three billion marks this year on tyres and services when refitting their vehicles with winter tyres.
Continue Reading
