Facing the Facts
In his inaugural speech as chairman of the NTDA Tyre Wholesalers Group (TWG), Ashley Croft did not waste any time in highlighting the issues he wishes to address during his tenure. Referring to certain manufacturers’ use of logistics companies and the place of wholesalers in the UK tyre business, Croft opened a discussion to which there is no quick resolution – calling on manufacturers to resist the urge to increase their direct market control and rather further their relationship with the professional wholesale membership that the TWG represents. In his own words Ashley Croft is “a great believer in not perpetuating things if they have served their purpose.” Croft commented that there is still “unfinished work to be done” and the fact that he accepted immediate past chairman Peter Gaster’s invitation to take over at the TWG would suggest that Ashley Croft remains a firm believer in the usefulness of the group.
Continue Reading1012 bhp Bristol Fighter-T Runs on Michelin Tyres
Kensington-based luxury carmaker, Bristol, has announced that it has produced a record braking variation of its Bristol Fighter model. Seen as something of a Bugati (Veyron) beater, the Fighter T’s twin turbocharged and intercooled 8-litre V10 engine is capable of producing 1012 bhp and a top speed of 270 mph, which has been electronically limited to 225 mph.
Continue ReadingATS Euromaster Wins Three-Year Contract with Fraikin
ATS Euromaster has secured one of the largest tyre supply and management contracts awarded in 2006 after winning a three year deal with Fraikin. The contract includes the majority of the 14,000 vehicles under Fraikin’s management, ranging from small vans and rigids to 44 tonne tractor units and trailers. ATS Euromaster secured the contract – estimated to be worth approximately £3 million a year – after carrying out a complete review of Fraikin’s requirements.
Continue ReadingFar From Frozen
With less than 1 per cent of the total UK market, no-one is saying the cold weather segment is huge, but speaking to influential market representatives reveals that the last couple of years have seen the industry make renewed efforts to raise awareness, emphasising both the safety benefits and profitability that cold weather tyres offer. Some manufacturers are even expecting the segment to total 3 million units “in the medium to long term.” Tyres & Accessories spoke to the leading cold weather players and asked what progress they have made and what’s happening next? In short the answer is growth. Many of the manufacturers surveyed by T&A said 2005 was a good year for cold-weather sales, while all were positive about their performance this year. T&A estimates, based on Europool figures suggest that almost 54,000 non-truck winter tyres were sold in the UK last year, up almost 15 per cent on 2004.
Continue ReadingMaking the Most of the Internet
Online retailing has come of age and UK consumers are leading the way. Conservative calculations suggest UK e-shoppers bought some £6.9 billion worth of products online in 2005. This year IMRG, the professional body representing online retailers, expects sales to increase to around £30 billion because 45 per cent of shoppers are looking to increase their online spending this year. Despite this, government figures suggest that only 15 per cent of tyre related businesses are represented online. And the 2006 NTDA/Trend Tracker Tyre Wholesaler survey found that over half of respondents described the Internet as “not important” when it came to their part of the business. Tyres & Accessories spoke to Internet specialists from both inside and outside of the tyre trade and found out that fresh business is there for the taking.
Continue ReadingLast Workers Leave Dunlop Factory
The last shift at Dunlop’s Washington UK plant clocked off ahead of schedule on 14 June. The Early April announcement that Dunlop would close the plant came as a “body blow,” to workers, the Sunderland Echo reported, as it followed a similar announcement at nearby Stag Furniture. Dunlop said it is continuing to work alongside Sunderland Council and One North East to help the workers find new employment through the JobCentre.
Continue ReadingNTDA Dinner and TAFF Awards Sponsored by Renault UK Vans
Held alongside the popular commercial vehicle and automotive trade shows, the tyre and fast fit industry’s biggest night of the year was no let down. There were some (pleasant) surprises when the award winners were announced; NTDA chairman, John Tarbox, pulled no punches when it came to delivering his speech; and celebrity former-MP (and world record holding after dinner speaker), Gyles Brandeth entertained the 500 invited guests with his razor sharp wit. But without any further ado here are the 2006 Tyre and Fast Fit Award Winners: Goodyear Dunlop UK had a particularly good night in the eyes of the 5000 NTDA members that voted, winning both the Product Innovation Award and the Industry Advertising Award (presented in association with Tyres & Accessories). Both awards related to the company’s RunOnFlat technology and followed the company’s large-scale investment in raising awareness of the product. Last month, Goodyear announced that the group had produced its 4 millionth RunOnFlat tyre, claiming market leadership in this growing sector. In gaining the advertising award Goodyear beat off particularly strong opposition from Kumho Tyre (UK), Sapphire Energy Recovery, Viking International, BITS and Vipal. “We are proud to receive this award from the NTDA, as they represent our trade customers, dealers and distributors. Our research tells us that this campaign has been very successful in communicating the advantages of RunOnFlat to drivers, and we are delighted that it has been received so well by the tyre industry,” commented marketing director, Neil Burrows. C-Tyres Ltd won the 2006 Environmental Award, giving the environmentally-friendly credentials of retreaders a major boost. It was the first time that C-Tyres have won the award since the company started trading in 2002, manufacturing the Colway and Greenway brands of retreaded tyres. Managing director, Gary Oliver commented: “We are absolutely delighted to have won this award and would like to thanks all members of the NTDA who voted for us. We are particularly pleased, not only for us, but for retreaders across the UK, because we believe this award reflects the tyre industry’s recognition of the fact that retreading is at the forefront of tyre recycling.” Continued Oliver: “The award emphasises our growing status as a comprehensive manufacturer of retreaded tyres. Although C-Tyres has perhaps traditionally been recognised as a car tyre retreader, we have invested heavily in other sectors to develop customer recognition in those areas.” Recent product range developments by C-Tyres include the Major Hi-Miler range of high mileage truck retreads, several new 4x4 and medium truck tyre sizes and the very recent development of a new range of Colway-branded run-flat tyres. For the seventh time, BITS was named National Wholesaler of the Year. Speaking on behalf of the business Brian Duguid said he was simply “surprised” that the company had won once again, and added: “We have a wonderful team and will continue to put customer relationships at the forefront.” Regional Wholesaler of the Year went to North Eastern Tyre & Exhausts Ltd. It is the third time NETE has received the regional wholesaler award. In response to winning the award managing director Ian Darcy commented: “To receive this award two years out of the three since it began is some achievement for a company that started life in an old railway yard in Yorkshire by my late father Fred Darcy and my mother Netta. Although I must stress this award is testimony of the hard work, dedication and passion that the people at North Eastern have for both their company, their customers and the industry. Rema Tip Top UK Ltd won Tyre & Aftermarket Equipment Supplier of the Year. This was the fourth time in six years, Rema Tip Top had achieved the title. Cliff Jones and Martin Blakey of Rema Tip Top received the prestigious award from Mark Lovett of Renault UK Vans, the awards sponsors. Afterwards, Cliff Jones acknowledged the award, paying tribute to the efforts of the team at Rema Tip Top for their continued success and role in regaining a title which they always take immense pleasure in winning. The were cheers as Michelin Tyre plc was named Tyre Manufacturer of the Year 2006. The award was collected by Michelin Tyre plc managing director and new Tyre Industry federation chairman, Jim Rickard. Continental Tyre Group managing director received the NTDA Chairman’s Award, recognising his “meritorious service” to tyre industry. The award is given at the discretion of the chairman. This year was the first time a tyre manufacturer has ever received the honour. John Tarbox, chairman of the NTDA commented: “Presenting the chairman’s award is always an enjoyable task, particularly this year as Brian Smith is such a worthy recipient. Every industry needs leadership and people prepared to work for the wider good. Brian’s support on initiatives such as 3mm and cold weather tyres has been much appreciated by the NTDA and the industry as a whole.” Brian Smith has worked in the automotive industry for 35 years. As managing director of Continental Tyre Group for over 12 of those, Smith has been an enthusiastic proponent of many industry initiatives including campaigning for better training across the board, educating on cold weather tyres, and campaigning on the safety benefits of changing tyres at 3mm. For 10 years he has led the Tyre Industry Council, helping to develop the roadside tyre check programme, acknowledged as one of the major road safety events in the UK and Northern Ireland. He was also President of the BRMA in 1997/1998. Incidentally the TIC is soon to change its name to the Tyre Safety Council. “We wish it well,” John Tarbox added referring to the association’s name change. The chairman’s speech NTDA chairman John Tarbox opened his speech by recounting the highlights of the association’s year. In the past 12 months the NTDA has expanded its membership to “embrace most of the equities and we are pleased to be able to truly represent tyre retailers, both large and small, in all the areas which impact on your business,” John Tarbox said. He was, of course referring to Central Tyres and ATS Euromasters’ decision to rejoin the association after seven years. The addition of Central Tyres’ roughly 70 centres, ATSE’s more than 500 outlets and 18 new independent members mean NTDA membership now stands at a record 2141 tyre distributors throughout the UK. The chairman then remarked on the negative effects of the VOSA MOT system failure situation (see page three of May’s T&A for more on this), suggesting that affected retailers should make thorough claims for compensation. When the spotlight was switched on to run-flat tyres, the gloves were off as far as NTDA chairman, John Tarbox was concerned. “We work in a business which is at the leading edge of technology, I don’t need to tell anyone here just how versatile and important to our safety tyres are and with the latest developments in the world of run flats that technology is moving to new heights. However the launch of these new products onto the market has posed special problems for tyre retailers.” No manufacturer was left out when it came to criticising the corporate approach to run-flats: “Our problem is with the inconsistency of advice. One manufacturer allows repairing in their run flats in the US, but not in the UK. Another says that repairing, as long as there is no evidence of damage, is perfectly OK. Others ban repairing worldwide. Indeed BMW say in their handbooks that you must not repair run flats. [Furthermore] the statement by the BTMA and TIC falls well short of giving definitive advice. ‘We do not recommend it however you must contact each manufacturers for advice.’ This is a totally unacceptable situation. Our members look to us for help in such situations, and until the industry gets it act together, we will be exposing our industry to accusations of profiteering and worse.” “We are very frustrated by the lack of information provided by our suppliers and despite our constant protestations things do not seem to be improving. Indeed we approached all UK manufacturers through the BTMA and asked for speakers for a series of seminars we are hoping to run throughout the country on run flats. So far we have had no offers of speakers. I find it hard to understand why manufacturers would not welcome the opportunity of talking about their products to their customers, it won’t cost you anything and we do all the organisation of the event – am I missing something here?” The case of one manufacturer was seen as particularly disappointing. “Here’s another example of poor communication,” John Tarbox explained: “At the last meeting of my region we discussed the new RAV 4, which has tyres that at present can only be changed by Toyota dealerships. How does it look for a motorist to be told that a tyre specialist cannot change a tyre because it needs special equipment? Another strong argument for closer working relationships between the tyre and car manufacturers and the tyre specialist – that is of course if the car manufacturers want to maintain vibrant tyre specialist network.” Then there was news of developments within the various industry associations: “During the year the NTDA has joined together with all the other associations operating within the UK tyre industry to form a truly representative Tyre Industry Federation,” Tarbox commented: “I am pleased to say that the federation, with our direct help, will be developing a road map for training for our sector through a working group administered by the NTDA.” Tarbox welcomed the formation of the TIF, but warned that the “we cannot be complacent” and “we must not allow it to become a talking shop.” “We all appreciate the need for both manufacturers and distributors to work together and the early signs are that there is a willingness, on both sides, to do just that. We will be watching closely the way the Federation develops and we will not be taking anything for granted. Congratulations to Jim Rickard on being appointed the first chairman of the TIF. Jim, you can rest assured that the NTDA will play an active role in making it a success, however, that success must be measurable,” he added. Another project that will no doubt be of great interest to anyone whose working life is spent studying the development of the tyre market, is the work of the expanded Tyre Market Study group. According to the NTDA chairman, “for an industry of our size the lack of meaningful market information is nonsensical.” As a result we can look forward to seeing “proper market information on both the sell in and sell out markets” at some point in the future. Next year’s dinner will be held in the Palace Hotel, Manchester, alongside the Brityrex Exhibition. Once again the NTDA AGM and the presentation of the 2007 TAFF Awards will be held in parallel with this event.
Continue ReadingHigh performance tyre sales support UK market development
The ERMC-compiled Europool figures report that the total UK passenger car tyre market amounted to 16,111,696 units in 2005 (down 1.9 per cent on 2004). This compares with a slightly larger drop in the Europe-wide total of 117,242,516 (down 2.9 per cent on 2004). However, due to the way these numbers are compiled (excluding tyres that are not produced within reporting countries) they are perhaps overly optimistic. As industry insiders will be aware, the total market is actually more than 10 per cent larger and has fallen significantly more than one to two per cent in recent years. New figures compiled by market research company GfK put the total market at 18.49 million units, down 13 per cent over 2004 in terms of volume (21.33 million in 2004 and 22.58 million in 2003).
Continue ReadingGoodyear to shut UK tyre plant in cost-cut move
The Goodyear Tire & Rubber Co. on Wednesday said it plans to close an automobile tyre plant in the United Kingdom and a bicycle tyre plant in Poland (Debica) in order to achieve combined annual savings of up to $50 million. The largest U.S. tyre company, which is based in Akron, Ohio, said it has begun discussions with union employees as a step toward shutting its Goodyear Dunlop United Kingdom passenger tyre factory in Washington, northeast England. This action is expected to create annual savings of approximately $20 million and result in charges of between $75 million and $85 million ($55 million to $65 million after-tax). The cash portion of this charge is estimated to be $35 million to $40 million.
Continue ReadingFleet E-Commerce Boosted by Faster UK Broadband
Fleet use of e-commerce products will be boosted by higher broadband speeds across the UK over the next few years. New services announced recently by Internet service providers (ISPs) mean that parts of the country have access to broadband speeds of up to 24 megabits per second (many connection currently run at 1 or 2 mbps or less). These faster connections will allow fleet e-commerce services to be developed including high resolution, full screen video links and ever more detailed transaction information.
Continue ReadingSignificant growth at Sapphire Energy Recovery
Whichever way you look at it 2005 was a significant year for Sapphire Energy Recovery. Not only the did the company successfully dispose of more than 100,000 tonnes of tyres, but it markedly increased industry awareness thanks to a high-profile (putting it mildly) advertising campaign. But neither achievement has gone unnoticed as the 2006 TAFF award nominations (see page 38) recognise the company on both counts. Furthermore Sapphire expects to process its 50 millionth tyre in the coming months, something that is particularly impressive when you consider that the company was only founded in 2000.
Continue Reading2006 NTDA Tyre & Fast Fit Awards
It’s time once again to vote for the winners of the NTDA Tyre and Fast Fit (TAFF) Awards. These were introduced last year and immediately became the awards that everyone wanted to win, as it is the customers who decided the outcome.
Continue ReadingMicheldever Tyre Services Sold in Management Buyout
Tony Todd, the architect of 34 years of growth at Micheldever Tyre Services’, has sold the company to its management team. On 6 February Alan Baldwin, Phil Brookes, Ashley Croft, Mike Flood, Brian Kerswell, and Eric Noble became the new owners. A number of other companies, including Kwik-Fit, are said to have unsuccessfully approached the company. The deal was backed by private equity company Graphite Capital and the Royal Bank of Scotland. Financial sources report that Graphite is taking a 72 per cent stake while the management will own the remaining shares. While details of the price-tag have not been released, estimates would have to be based on the £150 – £160 million of sales the company achieved in 2005.
Continue ReadingAutosport/Aftermarket Show Kick-Starts 2006
The 2006 Autosport/Aftermarket Show confirmed its position as the largest dedicated motorsport exhibition in Europe with 94,000 visitors in total. According to the organisers, 27,000 of these were trade visitors, an 8 per cent increase on 2004.
Continue ReadingBlackcircles Aims for UK Retail Revolution
Blackcircles.com is aiming to turn 700 independent garages across the UK into franchisees. And what’s more, managing director, Mike Welch, has a five-year plan to capture 10 per cent of the market and plans to enter Europe in 2006. Blackcircles.com is something of dotcom success story. Founded in 2001 when Mr Welch was 23, the company currently operates a network of 987 independent garages serving consumers from “Thurso to Truro.” Next the 27-year-old managing director is aiming to capitalise on this position by turning 700 of the garages into branded franchisees, making local independent garages into outlets linked to Blackcircles’ ordering and stock checking systems.
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