Kumho’s 4×4 Range Benefiting From Rally Raid Involvement
Although the event Kumho’s 18-inch Rally Raid tyre was developed for – the 2008 Lisbon-Dakar Rally – was ultimately cancelled, the tyre has since achieved success in a number of other competitive domains. And these victories are also in a way a victory for the Korean manufacturer, as no other tyre manufacturer produces an equivalent cover in this size. According to Kumho, the monster tyre with its enormous tread blocks is designed for optimum pace and durability over the sand and rock conditions that prevail on the world’s top Rally Raids. It employs the ultra-tough synthetic fibre ‘aramid’ (short for aromatic polyamide) in its construction for optimum weight and strength.
Continue ReadingBandag BTM-WB Designed for Intensive On/Off-Road Applications
Bandag has launched the BTM-WB (Bandag Trailer Mix - Wide Base), a new application specific tread product designed for fleets whose trailer and semi-trailer tyres need to cope with harsh, wear-intensive conditions on a wide variety of on-road and off-road surfaces. According to Bandag, this wide-single tread product also performs well when fitted on drive axles. Although the new BTM-WB has been designed to operate in off-road conditions, the manufacturer reports it also performs very well on surfaced roads in local and even regional service. Bandag is confident that the BTM-WB will become a firm favourite with fleets that have to deal with severe tyre wear rates.
Continue ReadingGoodyear to Reduce Staff, Freeze Worldwide Salaries
Following yesterday’s announcement that the company had sustained fourth quarter net losses of $1.37 per share and that net revenues had also fallen 19.9 per cent year-on-year to $4.1 billion, Goodyear’s full year results for 2008 revealed the extent to which the fourth quarter was down on 2007, showing a mere 1 per cent drop from the previous year’s record sales of $19.6 billion. The manufacturer also reported that it had seen increases in Goodyear-branded market share. However, the company’s statement on the figures took the opportunity to announce Goodyear’s plans to freeze salaries, cut an additional 5,000 jobs – though it is yet to be decided which markets will see these job losses – and sell non-core assets in an effort to cut costs and operating expenses by $700 million during 2009 fiscal year. Reacting to the news, an analyst report from Deutsche Bank reported “positive signs” from the results, saying that the Q4 loss could be viewed as “a respectable result considering that global volume (-19 vs. our -10.5 per cent estimate) and overhead under-absorption (-$213MM vs. our -$144MM estimate) deviated negatively against our assumptions.” Countering the 19 per cent drop in global volume, which Deutsche’s report called “a bit unsettling,” was the bank’s long-term prediction that shows Goodyear making a 54 cent profit per share in 2009 and $2 in 2010. It backed up these estimates by pointing towards the acceleration of “the bottom-line benefit of fixed-cost reduction” in 2009; the reduction of tyre companies’ capacity in general, leading to better “price discipline”; and that Deutsche analysts believe “tyre companies, including Goodyear, are poised for a pretty big improvement in gross margins in the back half, as they benefit from plummeting raw material costs.”
Continue ReadingContinental AG Reports 2008 Record Net Loss
Continental AG has reported a record group net loss for 2008, following what executive board chairman Dr Karl-Thomas Neumann called “an unusual year.” The net loss was the result of the company having to write down 1.23 billion euros of “goodwill impairment” due to poor performance in the automotive group’s powertrain division. This was compounded by the effects of high raw material costs and dramatic falls in OE demand during 2008. Consolidated sales came in at 24.239 billion euros, with a group margin of 7.6 per cent – a figure within the company’s “EBIT target corridor.” Nevertheless Continental was able to reduce net indebtedness by roughly 373 million euros, leaving 10.483 billion euros. Rubber group figures for 2008 faired considerably better with sales of 9.35 billion euros and 10.5 per cent margin. Passenger and Light Truck Tire posted sales of 5.1 billion euros, adjusted pre-tax profits (EBIT) of 644.8 million euros equating to a margin of 13.1 per cent. ContiTech’s numbers totalled 3 billion euros, 327.8 million euros and 11 per cent for sales, adjusted EBIT and margin. Commercial Vehicle Tire (CVT), however, survived on a slim margin of 2.7 per cent (36.3 million euros) despite sales of over a billion. Dr Hans-Joachim Nikolin, executive board member responsible for commercial vehicle tyres, explained that the virtual collapse of OE demand and raw material prices were at the root of the division’s narrow margins. The 290 million euros of increased costs the group had to pay as a result of raw material price increases at the root of CVT’s woes as this division had to face 100 million euros of this figure alone. However, commercial vehicle tyre’s particularly dependence on OE sales is also exposed in the full-year 2008 results.
Continue ReadingCooper’s Melksham Plant Halts Production for a Week
Cooper Tire Europe has suspended production at its Melksham, UK production plant. According to a company spokesman production and closed for a week in order to reduce stocks. However, a BBC news report added that the move would also “help safeguard its future.” There is apparently no threat to jobs at the plant which employs 1100 people. Production is expected to return to normal next week.
Continue ReadingGoodyear’s Danville Plant to Lose 400 Staff
Following Goodyear’s announcement in its full-year report for 2008 that the company was to reduce its global workforce by 5,000 over the next year, CEO and chairman Robert J. Keegan stated in a conference call with analysts today (19 February 2009) that a tentative agreement had been reached with local Steelworker leadership at the manufacturer’s Danville, Virginia plant to cut capacity and the work force by 400 people. The agreement will be taken to a union vote today.
Continue ReadingMichelin German Plant Starts Short Time Work
Michelin has reportedly reduced working hours at its Homburg, Germany tyre production plant. The move affects 900 of the 1200 workers at the factory that specialises in manufacturing truck tyres. The Saarbruecker Zeitung newspaper quoted a company spokesperson as saying the measure is planned to take effect from 1 March for six months.
Continue ReadingConti Automotive Appoints New Romanian R&D Head
As of February 1, research and development for Continental Automotive in Romania is being headed up by Dr. Christian von Albrichsfeld. The 12-year Conti veteran is coordinating the research and development activities of Continental in Romania at a national level in its Timisoara, Sibiu and Iasi sites. Dr. von Albrichsfeld has taken over this position from Christian Ruediger, who was in charge of the team in Romania for two years and finished his term in the position on January 31.
Continue ReadingBridgestone Announces Temporary Closures at European Facilities
Bridgestone Europe has announced temporary closure of factories in the region following worsening market demand during December, January and February, especially in the OE tyre segment. According to Bridgestone, these temporary shutdowns will affect the bulk of its European facilities, including the company’s plants in Béthune, Bari, Bilbao, Burgos and Poznan. Only the Tatabánya factory in Hungary and the agricultural line at the Puente San Miguel plant in Spain have been exempted from this action, reports Gert Meylemans, senior manager at Bridgestone’s European Communications Office. These temporary closures are already being implemented, Meylemans adds, and employees affected by the closures are being continuously informed as circumstances change.
Continue ReadingHiQ Aiming for 275 Locations by 2013
HiQ bosses recently held the retail network’s first National Franchise Conference. The leading fast fit retailer organised a franchise networking event at the impressive Crewe Hall venue in Cheshire, where the company’s recently named new managing director, Juergen Titz, outlined HiQs vision to grow in the fast-fit and vehicle servicing market. The event gave HiQ the opportunity to have an open dialogue with its franchisees and inform them of the types of services open to them, such as online ordering technology, marketing support and new corporate identity graphics. Despite trading in an unprecedented economic downturn, the company remained extremely upbeat about its future, mainly because of its National Franchise Programme. HiQ’s franchise structure is the only one of its kind in the fast fit industry, with 130 sites now run by 41 franchisees. By the end of February, this figure will rise to 138 sites and by the end of 2009, it is hoped that 170 centres will be franchised. Franchise manager Peter Tye underlined HiQ’s ambitious plans for the long term as well, declaring that by 2013, there will be 275 locations dotted around Britain. Company managers had previously stated that they were aiming for 250 locations by 2010. Goodyear Dunlop managing director Mark Brickhill told franchisees that recession must not be accepted, and declared that a partnership led structure will be fruitful in the long term: “We all know how tough times are, but so many of our franchisees are boasting some fantastic trading results. There are certainly opportunities to grow in a difficult environment. Successful businesses are all about leadership and those people who are innovative and determined to win will be successful.” Marketing manager Geraldine McGovern said: “After rolling out our national franchise programme, it was important to get existing and new franchisees together, to tell them our vision for the future, and how important they are to the company. They were also introduced to a range of contacts, who will be available to them as they strive to make their businesses successful. A number of services were also underlined for them, which we want them to utilise in the future.” cja HiQ Director Predicts ‘Bright New Dawn’ HiQ Retail Director Andy Morris has already set a bold New Year’s resolution for the fast fit company in response to “one of the busiest years imaginable.” HiQ, which has over 120 centres nationwide, announced a national franchise programme designed to speed up the transfer of Goodyear Dunlop owned stores long-term franchise agreements. If that wasn’t enough to keep them busy, the company also embarked on the first year of a three-year sponsorship of the British Touring Car Championship. Looking forward to 2009 Morris is optimistic: “Our company New Year Resolution is to offer ‘fast fit you can be sure of’ and that is our new company message that you will be hearing more of. It will be relevant to every single one of our centres. It has certainly been a hectic year, but one which has put us in a far stronger position now than we were 12 months ago. “We are unique in becoming the only national fast fit chain to unveil a radical franchise programme, and the results already show us that we are an attractive proposition to so many franchise partners, in spite of the economic climate we find ourselves in. Far from ‘selling off’ our centres, we are making a bold, sustained commitment to our network, and see this model of partnership as the best way to achieve success. With the franchisees we already have on board, and the new additions to be announced shortly, we are proving that partnership brings greater knowledge, meaning we can out perform company owned equity solutions.” To coincide with HiQ’s national franchise programme, the company is significantly investing into its systems and online services to attract more customers and position the company as leaders in online fast fit technology. Each franchisee will be given greater exposure on the website, allowing every business manager to communicate directly to his or her customers, through interactive podcasts and blogs. “While the New Year will present its share of challenges and opportunities, we feel that we have never been better prepared to deal with them,” Morris concluded. Preston HiQ ‘bucking credit crunch trend’ Meanwhile managers at HiQ, Blackpool Road, Preston claim business has never been better with an average of 1,000 tyres a month being sold at the site. Corporate communications manager, James Bailey reportedly told the Lancashire Evening Post: Even though we are in the midst of a credit crunch, people are not buying new cars like they used to and are instead turning to reputable centres like ourselves.” Kisby’s Easy Autocentres Acquires 27 HiQ Outlets A number of HiQ fast fit premises have been taken over by Chris Kisby’s Easy Autocentres. A total of 27 centres are included in the deal, including the company’s flagship Nottingham outlet. Following the acquisition from Goodyear Dunlop, Easy Autocentres is set to become one of the Midland region’s largest fast fit operators, with a turnover of around £10 million. Kisby’s former role as managing director of Goodyear Dunlop’s HiQ operation puts him in a strong position to appreciate the value of the deal. “I recognised that the opportunity to acquire these units would provide a strong platforms in the Midlands,” said the Easy Autocentres managing director and majority shareholder. “We will seek to build, both organically and through acquisition, to be a significant player in the sector.” The acquired centres include 12 freehold and 15 short leasehold properties. HiQ Names Three More Franchisees HiQ has attracted three new partners in its national franchise programme. HiQ now boasts more than 140 centres across Britain, having secured Alister McGill, who will take over the company’s Alnwick, Berwick and Sunderland outlets, adding to his existing Blyth and Gateshead centres. Gary Thomson will take on the Exeter, Bath, Honiton and Weston Super Mare stores with four experienced partners. Meanwhile, Phil Godfrey has added HiQ’s Banbury store to his Abingdon and Carterton businesses. According to the company the latest announcement means HiQ’s national franchise plan is now more than half full, with all remaining partners to be announced in the coming months. Alister McGill, aged 48, said the time had never been better to invest and expand his business, despite the current economic difficulties: “We are really bucking the trend in the motoring trade. Whereas retailers are having a tough time shifting cars as a result of a drop in spending, we are finding that an increasing number of people are keen to fix up or improve their current vehicles as a cost-cutting alternative. This also allows them to cut down on their emission as well as the cost of fuel, so it really is a great time to take on the extra HiQ centres.” Gary Thomson, aged 40, already owns HiQ outlets in Walmley and Taunton, and is delighted to add four more outlets to his portfolio, alongside four senior partners with more than 50 years combined experience. He said: “I have 25 years of experience in the industry, having been a mechanic for 15 years, and a regional manager for 10 years. So I am extremely confident about the future, not just for these HiQ outlets, but the fast fit sector generally.
Continue ReadingGoodyear Misses Analyst Targets
Goodyear announced today that it sustained fourth quarter losses of $1.22 per share, 19 cents more than analyst estimates suggested (-$1.03 per share) for the period. The company announced that net revenues have also fallen 19.9 per cent year-on-year to $4.1 billion, $300 million less than was anticipated. More to follow...
Continue ReadingSilverstone Releases New Track Layout Plans
Silverstone Circuits Ltd has unveiled provisional plans for a number of modifications to the track and spectator viewing areas at its Northamptonshire base. The most significant addition to the circuit will be a new section of track running from the approach at Abbey corner to an ‘Arrowhead’ at the inside of Becketts. The Arrowhead will then join up with the existing National Straight. Additional sections of track will also be laid at Chapel and Club in anticipation of the MotoGP World Championship rounds between 2010 and 2014 (following the signing of an agreement with Dorna to take the series to Silverstone).
Continue ReadingSchaeffler Confirms Hetmann Has Resigned
Schaeffler Group has confirmed that the company’s chief financial officer, Thomas Hetmann, has left due to “differences of opinion regarding the future strategic concept of the Schaeffler Group.” According to an official statement released by the company, Hetmann has left by “mutual agreement” and will be replaced by Mary Jo Gresens, who will act as a consultant. Gresens was previously CFO at the automotive supplier between 1999 and 2006. Meanwhile, Forbes has reported that Schaeffler is to present a revised restructuring plan to the German government in the next two week. A source “familiar with the matter” told the business magazine that the move, a requirement for receiving state aid, follows a 20 per cent drop in new orders at the company.
Continue ReadingDneproshina Appoints Roman Naumenko as New Director General
The shareholders of Ukraine’s second largest tyremaker (Dneproshina) has appointed Roman Naumenko the company’s new director general. The Ukrainian News information agency reported that the new director general was introduced to staff on 2 February. Naumenko headed Ukraine’s largest tyre maker, CJSC Rosava between 2004 and 2008. Dneproshina produces truck, agricultural, car and motorcycle tyres. Two Cypriot companies (Serverio Trading and Aliatros Trading) and two companies from British Virgin Islands (Sapphire Worldwide Assets and Laindors Trading) each own 17 per cent shares in Dneproshina.
Continue ReadingNew Ford Focus RS Runs on Conti SportContact 3
The new Ford Focus RS – the auto manufacturer’s fastest volume model ever – has debuted in its final form at the 2009 Geneva Motor Show, stepping out on Continental’s ContiSportContact 3 tyre, sized 235/35ZR19. The appearance follows previews at the London and Paris Motor Shows in 2008. Lars Frick, an automotive engineer for Ford tyres with Continental, stated that the manufacturer was able to offer the company a tyre appropriate to the needs of the new car: “The Ford Focus RS should be equipped with tyres, which support the sporty driving dynamics and which allows the high torque level of the car to be translated to the road. The emphasis lay on safe handling characteristics and short braking distances, even on wet asphalt. At the same time Ford expected very sporty tyres, which made the driving dynamics tests on the legendary Nürburgring Nordschleife a very useful process.” The Focus RS will also be kitted out with the ContiMobilityKit, allowing drivers to repair flats on the fly, as standard.
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