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 ReadingIncrease In Turnover For Pirelli
Turnover for Pirelli SpA in the first half of the year rose by 9.7 per cent to 3.946 billion Euro (3.598 bn Euro for first half 2000). Profits rose too; operating profit before interest and taxes was up 14 per cent to 243 million Euro (2000 1H: 213 m).
Continue ReadingCradle To Grave Tracking Standards Announced
The Automotive Industry Action Group – Radio Frequency Identification – Tire and Wheel Work Group, has developed a two stage standard for labelling of OE tyres, allowing tracking from cradle to grave. The first stage is a simple label and RFID tag. The second stage will be the approval of an RFID read write chip inserted in the tyre at the point of manufacture. The AIAG will be carrying out evaluation and testing of suitable systems later in the year. (For further information on smart tyre technology see the July 2001 issue of TYRES & ACCESSORIES.
Continue ReadingOn Its Way To Becoming A Global Tyre Brand
Vredestein boss Rob Oudshoorn is interested in making the Vredestein brand – already well-known in Europe – a global brand. In Asia, T-Trac and Protrac tyres are produced by sister company Elangperdana Indonesia for use in the Asia region of Indonesia, Malaysia, Taiwan, Hong Kong, China etc. The Importer Tyreland is the business partner at the other end of the world in New Zealand. This has been learned from the latest company brochure News Flashes which is distributed to the trade. At the moment it is not easy to cover Vredestein stories due to the fact that there is obviously no press office in the Dutch company.
Continue ReadingFire Remains In Firestone
Bridgestone/Firestone Inc. has acquired a majority shareholding in Morgan Tire & Auto. This equity has, after it purchased rival Tire Plus Limited in the summer of last year, more than 550 depots in 24 states of the USA and was second biggest independent equity in the USA, referred to as a retail-powerhouse. Turnover of Morgan Tire & Auto exceeds 800 million Euro. Larry Morgan, who began his career as an employee of Firestone, remains CEO. The acquisition is a clear sign that, despite the Firestone recall disaster in the USA, the tyre manufacturer intends to stay in the market with the Firestone brand.
Continue ReadingShare Of Tyres In Pirelli Turnover Falling
In the first half of the year 2000, tyre business accounted for 40 per cent of Pirellis turnover, but this has now fallen to only 37 per cent, whereas cables/systems/communications increased to 63 per cent. There was an improvement in tyre business figures for the first six months, but this could not match the results of the other business units. The main reason was the economic problems in Turkey and America, which are very important markets for Pirelli.
Continue ReadingReceivership For Colway and Motorway
KPMG has been appointed as official receiver for Colway Tyres and Motorway tyres. Production at both firms has ceased and the assets of the firms are to be sold. Total output from the retreading operations amounted to some 1,000,000 tyres in the preceding year. The demise of the retreading operation will indubitably have an effect on the UK retread market, and potentially on the waste tyre problem.
Continue Reading“Break Even” Forecast For South Pacific Tyres
Pacific Dunlop Chairman John Ralph told shareholders at the companys AGM that joint venture company South Pacific Tyres could return to a break even position by the end of the financial year. Earlier this year, 890 jobs were lost at SPT as the company restructured in a bid to cut losses, blamed on an influx of cheap tyres from overseas.
Continue ReadingCar Servicing As An Opportunity For Tyre Retailers
The disastrous sales of winter tyres in Germany at the end of last year have shown at least one thing: hope has no place in the calculations of business administration, and whoever has not yet understood that will have no future in this business. All the hand wringing of the tyre retailers does not help in this situation. Considering declining gross yields and the many new distribution channels for tyres, tyre retailers are forced to diversify and widen their service offers in order to compensate for loss of profit. One example of how this can be achieved is car servicing, which brings in gross yields between 40 and 50 per cent on average. A lot of business members have long ago realised this fact and extended their range of service offers. So car servicing is no longer a question of if but of how. The differences between the service offers and the quality of tyre retailers engaged in car servicing are huge. They range from the traditional Fast-Fit-Sector, covering the classical elements (exhausts, brakes and shock absorbers) to the fully equipped and professional working car repair station, offering every kind of car servicing. In this issue of NEUE REIFENZEITUNG the present level of involvement of German tyre retailers in the car servicing business will be explained and described, including some examples.
Continue ReadingMultiple Causes Of Accidents Cited By Bridgestone/Firestone
Bridgestone/Firestone has issued the results of its four month investigation into the accidents in the USA involving certain Firestone tyres. A number of causes were identified, including unspecified manufacturing problems at Decatur, tyre design in the shoulder area, driver abuse (travelling too fast and at the wrong pressure) and the weight of the Ford Explorer vehicle, particularly an alleged uneven weight distribution on the back axle. Ford denies that the margin for error between the load capacity of the tyres and the weight of a fully-laden Explorer is too slim.
Continue ReadingAgricultural Tyres From Uniroyal
Uniroyal is well-known for passenger and truck tyres. Now the brand, part of the Continental group, is trading under the name Uniroyal Agro in the agricultural tyre segment also. The exclusive distributor in Germany is Meyer Lissendorf, and negotiations are on-going regarding distribution in other European countries.
Continue ReadingLondon Property Company For Pirelli
Pirelli is to expand its property activities by setting up a new property company in London. The company manages a current property portfolio worth 8 bn Euros and Pirelli chairman Marco Tronchetti Provera has said that the new company will be used to expand the companys property activities outside Italy. Recently, Pirelli moved its treasury and investor relations to London.
Continue ReadingSecond Plant For Ringtread System
There are a lot of patents, some first registered in the 60s, concerning retreading using a ring system. Most of the patents belong to Marangoni, the majority shareholder of Ellerbrock. But the new tyre manufacturers were also thinking about the idea of a ring. There were also developments by Goodyear very similar to the Marangoni system, so that it came to a legal settlement. But this was long ago and ancient history – now Goodyear offers its own ring called Uni-Circle. Until now only one plant has existed in Europe where these rings are produced: in the Marangoni factory in Frosinone (Italy) so you dont need to be a detective to understand that the Goodyear source of Uni-Circle is the Marangoni plant. Now Ellerbrock has also begun production of the tread in form of a ring, also called Ringtread system. Ellerbrock will be responsible for the markets of Germany, Austria, Switzerland and Denmark. Other countries may be added later, because Ellerbrock will produce the modern tread patterns popular in central Europe. Capacity of the new facility will be 300 rings per day. One benefit of the rings in comparison with traditional flat tread patterns for retreading is the higher flexibility in production: charges of twenty rings are no problems in the new plant. But there are also benefits for the retreaders: they can save material, time, and because the process is totally automated, mistakes in production caused by human error – which might lead to splice separations – are nearly impossible. And the ring looks exactly like a new tyre. The target of Ellerbrock with the Ringtread system is not to change from traditional truck tyre retreading but to find new customers.
Continue ReadingUncertainties Stop Michelin’s Plans For India
Reduced profits in the Indian tyre market and an uncertainty about acceptance of radial truck and bus tyres has forced Michelin to take stock of its plans for the continent. Plans for a $115m plant at Maharashta have been put on hold. In the meantime Michelin is testing the market with imported radials before making a final decision.
Continue ReadingNew Leader For Goodyear’s Global Marketing/Brand Management
The Goodyear Tire & Rubber Company has elected Cathryn M. Fischer, vice president and chief marketing officer. Fischer, 39, will be responsible for the worlds largest tiremakers global marketing and brand management efforts. She will report to Robert J. Keegan, president and chief operating officer.
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