ITWS Aims to Reduce Industrial and OTR Tyre Costs
With over 55 years of experience in the industrial and large earthmoving tyre industry, International Tyre & Wheel Solutions’ team has a vision to reduce its customers running costs by continually searching for innovative ideas. According to the company, one example of this is the introduction of the new SG Revolution tyre concept into Europe. The SG Revolution super cushion tyre is manufactured In Thailand and is said to exhibit performance that is “second to none” in terms of hours per millimetre (mm) and cost per hour. Sizes are available from 400x8 up to 29.5x25 L5 tyres, this tyre as an original tread depth of 177mm. Sales of the Belshina giant earthmover tyres along with the Tyrol tyre sealant represent the products that ITWS offers to the construction, waste and freight markets. ITWS also supplies tyre presses and tooling for the fitment of its tyres.
Continue ReadingShanghai Baolong Supplies Leading OEMs
As an official supplier of tyre service products to Ford, GM and Chrysler, Shanghai Baolong Automotive Corporation hopes to maximise the value of these contracts when it comes to marketing its Digitire aftermarket TPMS products. Baolong started its business working with the trade, and now after 10 years of development the company has grown into a corporation covering R&D, investment, production and trade. As a way of offering top quality products to our customers, Shanghai Baolong Automotive Corporation and its subsidiaries follow the requirements of ISO9002, QS9000, VAD6.1, ISO/TS16949 and established a strict QC system.
Continue ReadingTaking Stock of the Industry
When Tyres & Accessories last spoke with Rimstock Plc a couple of years ago, the effect of MG Rover’s collapse in 2005 was still fresh in everyone’s mind. Rimstock itself lost 10 per cent of its business overnight when the last remaining domestically owned vehicle manufacturer ended production. Two years later the wheel industry here has not completely rebounded, but the well-known West Midlands wheel producer, Britain’s largest, has managed to carve several successful niches for itself.
Continue ReadingATS Euromaster Doubles Leasedrive Velo Share
ATS Euromaster has been awarded preferred supplier status in a new two-year agreement with Leasedrive Velo Vehicle Management, doubling its share of the customer’s 17,800-strong fleet on the back of strong service delivery in 2007. The contract will see ATS Euromaster fast-fit services including: tyres, exhausts, brakes, shock absorbers, batteries and oil. Leasedrive Velo merged last year to become one of the largest privately owned vehicle management providers in the UK. Ivor Johnson, Fleet Management and Operations Director at Leasedrive Velo, says: “Service delivery ranks very high on our agenda and is an area where ATS Euromaster ticks all of the boxes. There has been a real willingness within the company to partner with ATS Euromaster, and they have been keen to step forward to support our customer base, which is largely comprised of high profile blue-chip clients,” he adds.
Continue ReadingUpdate: HiQ to Franchise Off 109 Equity Outlets
HiQ has unveiled plans to accelerate the companys franchise offer by transferring 109 existing company-owned stores into 15 regional zones for regional as well as national investment. The news came in parallel with the launch of HiQs sponsorship of this years British Touring Car Championship. Company representatives told Tyres & Accessories that this seven figure motorsport investment represents the single largest marketing investment Goodyear Dunlop has committed to the HiQ brand. In a further twist, HiQ managing director Neil Burrows announced that he and three members of the management group are interested in investing into a significant part of the network themselves, demonstrating they really are willing to put their money where their mouths are regarding the franchises development. Therefore, in the interests of transparency, Neil Burrows and the other three as yet unnamed managers will be assigned to special projects (such as managing the BTCC sponsorship deal) within the Goodyear Dunlop group. The news that Goodyear Dunlop is effectively franchising-off 109 of its retail outlets also goes some way to further explaining the recent decision to transfer former Goodyear Dunlop Commercial Director, Robin Sharpe, to “special projects.” With Burrows team’s decision to bid for HiQ in mind, it now appears that Sharpe will manage the HiQ team until the final announcement regarding the franchising of the HiQ equity branches has been announced. Goodyear Dunlop representatives told T&A that the jobs of all those involved are secure and, in the event that their bid is not successful, they will be free to return to their former positions. The company will be unveiling details of its nationwide franchising programme on 31 March, with the definitive structure following in the summer. At the time of the announcement Goodyear Dunlop Managing Director Mark Brickhill stated: “The fact that Neil and his team wish to invest in HiQ is a signal of the confidence that management have in the future success of HiQ. However, it is vital that we have complete independence and transparency during the franchise application period, which is why we have appointed Robin to lead the HiQ team during the next few weeks.” “There are huge opportunities in the vehicle servicing market due to the lifting of restrictions on who can carry out servicing work on vehicles without affecting warranties. This, coupled with aggressive new product development plans from Goodyear and Dunlop, means that HiQ is in a strong position to grow significantly over the coming years.” The total number of HiQ outlets nationwide as of February 2008 stands at approximately 120. The three-year plan unveiled last year is to more than double this number by 2010. The target now is for 60 more retail franchisees to have joined the network by the end of 2008. Neil Burrows has previously stated that the company is initially interested in attracting franchisees in the North West and within the M25. While this is still true, the strategy for 2008 is also to fill gaps in the market. For example, at the time of going to press, there wasn’t a single HiQ outlet in Norfolk. “Longer term we are not limiting ourselves to 250 outlets,” Burrows commented, explaining that in the future retail outlets would be run by a combination of single centre owners and multi-store franchisees. The example of one franchisee in Cumbria exemplifies the way a multi-store franchise might operate. This franchisee is exclusively responsible for HiQ sales in the Lake District and as such he has the opportunity to enter into dialogue with the company regarding development of further HiQs in the area. Over a year since HiQ relaunched itself as a car and van only tyre specialist, plans to upgrade the look and feel of the network continue to progress. 30 outlets are already refurbished in what are still the early stages of three to five year upgrade plan. HiQ’s novel use of the Internet as a sales tool is also said to be expanding following the system’s soft launch last August. While sales generated through the online system still represents “less than 5 per cent” of overall sales, this is expected to increase significantly as the company adds additional tyre brands and servicing options to the system. Seven-figure sponsorship investment While the launch of HiQ’s maiden year as title sponsor of the British Touring Car Championship (BTCC) may have been upstaged to some extent by the news of the radical changes within HiQ’s ownership structure, it would be a mistake to underestimate the significance of this deal. “The HiQ business is a core part of Goodyear Dunlop’s plan for profitable growth and [the] HiQ MSA British Touring Car Championship launch is evidence that we are continuing to invest to build HiQ as a vital channel to market for us. The HiQ network growth will be through franchising. Our existing franchises have been tremendously successful and there is significant interest from existing and potential new franchisees in joining us to invest in HiQ,” During the BTCC/HiQ launch press conference Neil Burrows explained that he first entered talks with the BTCC series director and administrator on the subject of a sponsorship deal roughly a year ago. According to Burrows, the arrangement works at every level and the partnership “really has legs” for future development. One example of this is the running of race evenings in outlets near race meetings, featuring racing stars and experts. The first of these will take place at the HiQ in Grays, Essex, and is expected to present a strong PR and promotion opportunity for the brand. Apparently the only problem with this kind of event is there isn’t enough races in the season to cover all 120 HiQs. Another example is the discount promotion HiQ is currently running, with HiQ offering discounts of up to 20 per cent on “race track inspired” Dunlop tyres at stores across the country as a way of celebrating the tyre retail chain’s first year as sponsor of the British Touring Car Championship. “We are delighted to be sponsoring the MSA British Touring Car Championships. It is a huge development for HiQ and we want to share our delight with customers. We have agreed to knock 20 per cent off a range of brands,” HiQ managing director Neil Burrows commented, adding: “The BTCC has proved that it can deliver high value of advertising worth, with live ITV coverage, the biggest UK motor sport attendance figures and broad media exposure. It gives HiQ a perfect opportunity to promote our unique offering as we re-launch and grow our network across the UK.”
Continue ReadingDon’t Mention the War
When online tyre retailer Blackcircles.com launched its new Meinreifen.de website for German consumers this month, you could be forgiven for interpreting the move as a strategically aggressive act. Hannover-based Delticom AG has been selling tyres online in Germany (and 29 other countries) for years and if its latest financial results are anything to go by, they have been making a rather good job of it. However, Tyres & Accessories has learnt that Blackcircles has been researching a possible entry into the German market for the last three years. So, could we be witnessing the start of an online tyre war?
Continue ReadingThe Nominations Are In…
Chris Anthony Editor, Tyrepress.com/Tyres & Accessories Tyre Industry Publications, Federation House, Station Road, Stoke-on-Trent, ST4 2SA, United Kingdom +44 (0)1782 969860 The content herein is expressly intended for the person(s) addressed, and for business purposes. Any other communication is the sole opinion of the author and not necessarily the views of Tyre Industry Publications Ltd.
Continue ReadingContinental to Relaunch ContiNetwork
When Tyres & Accessories recently attended Continentals annual media briefing, we expected to hear details of the previous years market statistics and product trends. However T&A got more than we bargained for when Continental UK commercial tyre business director, Arthur Gregg, revealed that the company is relaunching its ContiNetwork commercial vehicle retail business in February and will spend the next few years completely refreshing its product line-up. Full details will be published when the official relaunch takes place in February, but here is a rough outline: Continental are aiming to give their dealers a more equitable system, whereby each company will have increased freedom to choose how much fleet business they commit to. Executives recognise that large amounts of fleet business suits some dealers better than others. In addition, Continental will unveil a new “dealer charter” (not a contract), which aims to improve two-way communications. In a related move T&A learnt that a new fleet manager for the Northern region will join the company this month.
Continue ReadingNew Reports On UK Tyre Market Size
One thing that almost everybody agrees on in the UK tyre industry is the lack of readily available, meaningful statistics on the size and value of the tyre market. The NTDA has teamed up with research company GfK to produce the "World of Tyres" – an exclusive members' newsletter which includes a regular review of retail sales data on the passenger car, 4X4 and light commercial tyre market.
Continue ReadingManufacturer Silence About Tread Depth Dangers Criticised
The continued lack of public recognition some UK based tyre manufacturers give to wet condition grip performance in tyres with a tread depth below 3mm has been criticised by the chairman of the NTDA’s Tyre Wholesalers Group. Ashley Croft told a gathering of senior managers from the UK tyre industry that: “At the time of the 3mm campaign launch, one of the reasons given for non-involvement from a particular manufacturer was the potential for flagging-up a Duty of Care issue in the USA on the basis that it should have been aware of the wet grip performance drop off prior to this, and should have alerted the public accordingly.
Continue ReadingWho Wears the Trousers?
The subject of grey marketing raises the hackles of wholesalers and manufacturers alike, with each blaming the other for its existence. So imagine my surprise when Kumho UK managing director, Steve Tidmarsh tackled the subject head-on, telling delegates at November’s Tyre Wholesaler’s Group (TWG) lunch that it is “the manufacturers who drive the grey market.”
Continue Reading‘Manufacturers…Drive the Grey Market’
Almost six years to the day after the Levi versus Tesco ruling (see page three for more on this), Kumho UK managing director, Steve Tidmarsh, used his recent NTDA Tyre Wholesalers Group (TWG) speech to address the subject of grey importing in a refreshingly direct fashion. “The grey market,” he observed, “always seems to increase when supply rates are poor.” He continued: “For some reason this enrages wholesalers, but let us be fair, it is often exploited by them. However, to balance that, it is also right to state that it is the manufacturers who drive the grey market and currently with the weak US dollar products are a-plenty,” he explained.
Continue ReadingFair Distribution of Service
This year’s NTDA Tyre Wholesaler’s Group (TWG) lunch in November continued in the tradition of recent years, with thought provoking speeches on interesting industry topics. TWG chairman, Ashley Croft focused on the subjects of manufacturer distribution and tyre safety policy. Referring back to his comments on the subject 12 months ago, Ashley croft opened by querying Christian Salvesen’s intention to become the sole logistics supplier to the tyre trade: “I wonder if their report of a 19 per cent profit fall, attributed to higher than anticipated start-up costs on distribution deals with tyre makers, has caused a rethink to the attractiveness of their stated strategy. From the point of view of companies receiving delivery from this logistics supplier, they still have a long way to go before they reach the level of quality of distribution achieved by any of the UK wholesalers. (In June Tyres & Accessories reported that profits at Christian Salvesen fell 19 per cent, at least partly due to the higher than expected start-up costs encountered in its distribution deal with Goodyear Dunlop and Continental Tyre Group in the UK. At the time, the news extended the UK transport divisions operating losses to £4.6 million for the year. By 2 October, Groupe Norbert Dentressangle had offered to buy it.) Ashley Croft continued: “Kwik-Fit also believe they can distribute their own requirements more efficiently and at less cost than outside logistics companies with their planned new distribution hub. As wholesalers, we must be careful to ensure we do not then further subsidise the manufacturers true cost of distribution to smaller retailers. We have already witnessed a narrowing of terms between smaller retailers, and ourselves that I do not believe truly reflects the cost to serve. I am sure that in the negotiations between manufacturers and their logistics suppliers, rates will be increasing rather than decreasing, and should be passed on in accordance with the high cost that small volume deliveries incur.” ‘It’s a penguin; it won’t fly’ From here Croft drew parallels with the 1991 proposed generic ‘Tread Carefully’ campaign, designed to promote the publics awareness of 1.6mm tread legislation: “I believe that Chuck Davies, sales director for Michelin at the time, was being prophetic about our industry in general when he made his well publicised comments about this campaign, ‘its a penguin; it wont fly,’ in a reference to the apparent impossibility of the manufacturers working together and with the various sectors of the industry.” Croft observed: “The politics of our various organisations and the members they represent do not apparently permit working together for the common good.” And this, of course, has implications on recent projects to paint an accurate picture of the UK replacement market: “Our net replacement market in the UK has, I believe, grown substantially over the last two years - and I recognise that this is not shown in ERMC statistics.” (At this point it is worth mentioning that NTDA members have recently been cooperating with one of the world’s leading market research firms, GfK, to produce what sound like a fascinating sell-out market report. Initial conversations with GfK representatives suggest that this project could represent some of the most accurate “sell-out” sales data so far seen on the UK market, going down to size and speed rating. Initial results are expected in January 2008. Keep an eye on Tyres & Accessories magazine and www.tyrepress.com for more details on this). Ashley Croft continued his speech: “Tyre manufacturer surveys tell us that ‘brand,’ and ‘trust in the brand’ are major influences upon the decision making processes of tyre buyers. The dramatic growth of brands such as Linglong, Jintong, Infinity, Maxxis, Sunny, Wanli et al would suggest there is a different over-riding influence; that of price! Let me be perfectly clear: as a wholesaler, I would much rather sell a major brand product at £75 than a budget brand product at £25. Personally, I am also not happy to see such a low market share position held by the major brands. There is, however, a seemingly insatiable appetite for budget brands in this country, a point that does not appear to have been missed by the ETRMA. Concluding Croft said: “Until such time as we are able to work together as a cohesive industry we shall never be able to effectively communicate our message to the buying public…I believe we should take the comments of Chuck Davis from 1991 as a challenge, and not an epitaph.
Continue ReadingIndependent Thinking – Bridgestone UK’s retail strategy
Bridgestone UK’s general strategy of focusing on independent dealers is clear with 90 per cent of its sales going through this channel and only 10 per cent going through equities such as Kingsway, ATS Euromaster and HiQ. If anything the management sees its relationships with key independent dealers as even more important to truck tyre sales. Sales figures given at the Truck Point conference seem demonstrate this: 94 per cent of Bridgestone CV products are supplied through Truck Point dealers.
Continue ReadingUK Fleet Success Keeps Bridgestone Growth Consistent
In contrast with some other premium manufacturers Bridgestone’s 2006 and first half 2007 sales both grew 1 – 2 per cent. According to Bridgestone UK’s commercial sales director, Greg Ward, the key to the company’s continued growth in the mature market is consistency and continuity. From his perspective, the recent news that the company has retained the Ryder contract for another three years is case in point. (In this instance Bridgestone beat off early competition from another competitor to retain the 10-year long working relationship it has with the Ryder fleet). “If the second half is as good as the first half, I will be delighted,” added Ward. Most sources agree that the influence and volume of Chinese products grew during 2006, but at the same time premium manufacturers like Bridgestone appear unfazed by their rapid growth. In response to the question of increased competition from the Far East Greg Ward commented: “Chinese & Budget brands may be trialling their products on fleets, but the biggest, most professional fleets need professional service providers in addition to tyres. The Truck Point Network is a real winner in this respect.” In addition, the recent US recall situation should be take as a warning, Ward added.
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