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Michelin’s winter tyres have come out on top in a survey conducted into customer satisfaction in Japan.
Research company, J.D Power Asia Pacific, performed the study, which showed of the five tyre brands ranked by the customers, Michelin scored highest with 655 out of a maximum of 1,000 points. The overall industry average is 586.
Bridgestone Motorsport has confirmed that it will be the official tyre supplier of the newly launched GP2 single-seater series when it begins in 2005.
The Bridgestone Potenza equipped Ferraris of Michael Schumacher and Rubens Barrichello successfully reclaimed the French Grand Prix crown as they claimed first and third places respectively. Fernando Alonso’s Michelin running Renault took second place.
Results have been published from the seventh Annual Morgan Stanley European Auto Conference. And an interesting industry overview came from both Continental and Pirelli.
Continental’s CFO, Dr Alan Hippe gave an overview of the company’s major business and an update on the decision to close tyre production in Mayfield, whilst Pirelli commented on its North American business strategy.
The Tire Industry Association launched its Global Council at the Reifen 2004 trade show in Essen. The Council was formed in February 2004 with the intention to “pursue effective solutions for today’s global tyre industry.”
Michelin & Cie., one of Europe’s largest tyre makers, is set to open a tyre plant in Russia on 7 July. Both Interfax and The Moscow Times reported the information, citing an official at the company’s press service in Paris, who stated that the plant, based in the Moscow region, will produce 2 million car tyres a year. The company intends to expand this capacity to 6.5 million next year. The press service source said Michelin is investing $160 million in the plant.
Michelin, based in Clermont-Ferrand, France, planned to borrow $20 million from the European Bank for Reconstruction and Development for the Russian factory two years ago, on the understanding that the EBRD had would have a 49 per cent stake in the plant.
At the halfway stage of the 2004 series, Dunlop shod machines continue their success as they lead the British Championship class on the BSB calendar.
Once again Dunlop will endeavour to maintain this racing success rate at Brands Hatch Grand Prix circuit this coming weekend.
Chinese car manufacturers produced 30.5% more cars in May than they did 12 months ago. In May China produced 215,000 vehicles, 10.2% less than in April. Compared with previous growth rates, 30% looks relatively meager. In April 2003 production went up more than 42% and February 2003 saw a staggering 62% increase. To put number this into perspective, figures for March show that UK car production rose by only 7.4% to 163,123 units.
This year’s Reifen 2004 exhibition was the most international yet. Exhibitors and visitors alike are already looking forward to the next show, which will take place from 23 to 26 May 2006.
Following what the company have called “robust overseas demand” Toyo has announced that its new tyre plant will be situated in Bartow County, Georgia in the USA. The site, situated outside the state capital, Atlanta, was chosen above other prospective locations mainly based in the south-eastern United States.
The new facility will use the company’s automated tyre manufacturing system, which enables it, according to Toyo, “to maintain a high standard of quality while realising the flexibility to produce small production runs of multiple lines if tyres.” A new subsidiary company, Toyo Tire North America Inc., will own and operate the manufacturing facility.
The tyre producers plan to spend a total of nearly $400 million on the plant. In the first phase the company will spend $146 million on the plant and hope to begin production in 2006. Initially 350 employees will run the plant. In the second phase the company will invest $127 million and will create 300 more jobs. The third phase will include a further $119 million of investment and will see the work force expand to around 900. When finished, the site will have a total floor area of 96,000 square metres. Toyo estimates that the factory will produce two million passenger and light truck tyres a year. The site in Bartow County will also include a 40,000 square metre warehouse that will service the south-eastern states.
Recent years have seen the commercial truck tyre market move in favour of the Independent dealer. Where previously the fleet sector was dominated by the Equities – ATS Euromaster, Motorway/Hi-Q, National, and Central – the divestment and rationalisation that has taken place over the last five years has enabled the Independents to become a significant player. In fact, at a recent market trends presentation, Continental Tyres estimated that the Independents are now responsible for nearly 50 per cent of all tyres being sold to the market.
Supplying tyres to the truck fleet market, however, is big business and it takes a professional approach backed by a major manufacturer to get anywhere in the fleet business. Not only that, it takes a national, and ever increasingly, international approach to the market. That makes life difficult for the Independent dealer who cannot realistically deal with fleet business in all corners of the UK, never mind offer European cover.
The solution for the Independent is to join a tyre services network that can handle the approach to the national fleets and through its members offer national, or even international cover for fleet customers.
ContiNetwork, set up several years ago by Continental following its divestiture of National Tyres, is one such service network and forms Continental’s primary route to market for commercial tyre sales and service. Interestingly, Continental is now the only service provider to concentrate its distribution solely on the Independent network. Something that is of great importance to the Independent dealer who could often find himself competing against a service provider’s own Equity for the same business yet at different prices.
ContiNetwork has since established itself as one of the leading Independent networks and, according to Continental, services more national fleet business than any other Independent network. With 49 member companies – so-called ContiNetwork Partners – with some 200 tyre depots covering the whole of mainland Britain, its members are in a position to be able to deal with Continental’s national and regional fleets alongside their own contracts.
The package ContiNetwork gives its members is more than just tyres. There has to be a competitive product certainly, but ContiNetwork works to develop relationships and build confidence with its members.
Bert Stellinga has now been installed at Vredestein’s Wellingborough UK headquarters for two years. In that time Vredestein have launched new high performance tyres and taken steps to develop the brand awareness in the enthusiasts market in the UK, whilst at the same time developing their share of the agricultural tyre market. It has very much been steady as she goes for the Dutch tyre manufacturer.
Bert Stellinga told T&A that the UK is a major market for Vredestein and that progress was being made in both the UK and the Irish markets. However, to get a better picture of the company it was important to understand the wider position of Vredestein as an organisation.
2003 saw Vredestein’s year on year sales on the increase and the company managed to record a profit, very close to that earned in 2002. During the year there was also a stock reduction exercise which released funds and made the whole business more profitable. “The fact that Vredestein is making a profit,” says Stellinga, “enables the company to invest in people and product, to develop new services. For instance, in some markets in the European Union we have our new Internet Ordering facility in place. This allows customers to access stock records, place orders and arrange delivery on line, at their convenience. The strength of being in profit also allows us to develop our marketing with advertising and of course attendance at events such as the Autosport International Exhibition.
“One of the biggest developments for the company last year was the return to private ownership. Having removed the obligation to the shareholders that put the company in a position where it could increase its flexibility and invest in research and development. At present we are in a transitional period but the move will have positive consequences in the future. This will be seen in the investment in new lines this year with a new winter tyre arriving later in 2004.”
One question that arises about Vredestein is its ability to stand alone. Other smaller manufacturers are working together with off-take agreements to fill capacity, or enable ranges to be extended. There is a deal of technology exchange and shared product development. As an independent, manufacturer can Vredestein continue to develop its own products as a stand alone business?
“Vredestein is very much a self contained operation and I don’t think that we would envisage such close co-operation with competitors. Our own R&D facility swallows a considerable element of the finance budget but we need to develop products that the market appreciates and wants. We produce niche products that appeal to specialised markets – Sportrac and Ultrac are the only designer tyres in the world and our cooperation with Giugiaro Design is proving to be very successful, for instance. We do not need vast volumes because we are selling premium quality products where we can maintain good prices for everyone in the chain. We do not deal with OE in passenger car tyres, so we can survive on our limited capacity. Our OE market is strictly agricultural and again, we offer a premium brand tyre to a specialised market,” says Bert Stellinga. “We are determined to go it alone and I can’t see any reason why we shouldn’t.”
As from April 2004, Minekazu Fujimura has taken up the position of Chairman, Chief Executive Officer (CEO) and President of Bridgestone Europe (BSEU).
Cooper-Avon Tyres Ltd has achieved record sales results in the first quarter of 2004. Four years ago the company implemented a new strategy to help safeguard its future. As part of this, the company has seen substantial investment in new processes and products in recent years and is growing at a rate of some 10 – 12% per annum. It is anticipated that this trend is set to continue in the foreseeable future.
From 1st January next year, Bridgestone will become a main supplier to DaimlerChrysler of tyres for middle-sized and heavy trucks (six tons and over) for European, African, Asian and Middle Eastern markets. Bridgestone has been supplying its Greatec Mega Drive super single to DCX since 2002 and the success of this relationship has led to the latest deal.
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