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15091

Bridgestone back at the IAA

Bridgestone will return to the Frankfurt IAA in 2003, after a 12-year absence, with an innovative display of its latest tyre technology and achievements. The 310 m2 booth will be located in Hall 8, nr. A18. The famous red Formula One Ferrari catches the eye, but there’s more to the stand than motorsport glitter. “We wanted to show that Bridgestone develops world-class tyre technology”, says Mr Günter Unterhauser, Managing Director of Bridgestone Germany. “The IAA is one of the most prestigious motor shows in the world and certainly the top show in Germany. It is not only for end users. It gives us the chance to invite loyal dealers and our First Stop partners, to convey the message that we are a high tech company and to show them the new range.”

15092

Bridgestone Announces Expansion Of Truck And Bus Tyre Production

Bridgestone Corporation has announced an expansion in truck and bus radial production at three plants in Japan and one in Thailand. In Japan, two billion Yen (US$16.86 m) will be spent to increase capacity to 1,300 tyres a day. The factory at Chonburi, Thailand, will begin production in the second half of next year, at a rate of 2,500 tyres daily, which will double by 2006. Total investment in the plant will reach 24 billion Yen ($202.3 m).

15093

US Court Rejects Tyre Monitoring System Regulation

In the USA, a panel of three federal judges has rejected a proposed tyre pressure monitoring system (TPMS) as it allowed too great a margin for error. TPMS was made compulsory in new cars following the Ford Explorer/Firestone tyre episode. The National Highway Traffic Safety Administration was ordered to come up with a TPMS for cars and it offered two systems – one which required a sensor on all four tyres (direct system) and one which used existing technology systems, such as ABS, to estimate pressure (indirect system). Consumer groups claimed that the second system was not effective all the time, and thus did not meet the law’s requirements, and the judges agreed, ordering the NHTSA to formulate a new rule.

15094

Greenhouse Gas Legislation To Affect Tyre Production?

The EU is planning legislation to significantly reduce (by 25 per cent) the amount of fluorinated greenhouse gases in a range of products by 2010. One of the worst greenhouse gases is sulphur hexafluoride, which is present in tyres, and which has a greenhouse effect 23,900 times that of carbon dioxide. Should the proposals become law, any EU country not meeting the standards could face sanctions and non-EU countries wanting to export goods that do not comply with the standards into Europe would be prevented from doing so.

15095

Dekk Partner aims to develop the independent market in the face of multinational competition

The Nordic Market is very different from the highly developed mass markets of the UK or Germany – both of which are recognised as the most highly developed markets in Europe. The Nordic market might be considered to cover essentially Norway, Sweden and Finland, and possibly Denmark – depending upon your point of view or your business strategy. In any of these countries logistics would give most typical regional wholesalers nightmares. In the case of the three northern countries deliveries are hampered by long distances, less developed road networks, and for around half the year, bad weather conditions – not to mention fjords and ferries in Norway. Denmark, being more densely populated and considerably less mountainous has a better transport system, but also relies heavily on ferries between the islands that make up much of the country.

Leif Kristiansen has a long history in the tyre trade and in 1993 was working with Vianor when he saw the need for a tyre retailer group that not only served as a buying point for tyres, but as a much wider partnership aimed at helping the independent tyre retailer compete in a market increasingly dominated by equities.

Leif Kristiansen says, “Dekk Partner is owned by the members, each with one share so that there is no controlling member. That is very important. There are no suppliers involved in the group and no producer can buy shares. We want Dekk Partner to be fully independent.

“Our members are free to buy and sell what they want from whoever they wish but we do have a loyalty rebate scheme for our members that encourages them to buy within the group. It is highly successful. With respect to the suppliers, there are none with a contract any longer than two years. So irrespective of the brand or the manufacturer, we work on two year contracts to keep the standard of service provided as high as possible.”

15096

RL Automotive: Taking the high tech route

Whilst it was Digital data gathering that set the ball rolling for RL Automotive, today it caters for the tyre market’s every need.

RL Automotive is a far cry from the usual tyre parts supplier. Here is a business where, from the outset in 1998, technology was always going to be at its core. Unlike many opportunists who see the tyre industry as a market for their latest software packages, RL Automotive is much more directly linked to the tyre business and offers technology in such a way that even the most Luddite of mechanics (is that a contradiction in terms?) can understand the benefits.

It began with the understanding that the emphasis on tyre costs was moving away from the cheapest-to-buy policy, to the cheapest-to-run, cost-per-kilometre approach to tyres. The tyre management theory of extending tyre life through a proper monitoring and maintenance schedule is in itself nothing new, but it is something that can only truly be worked efficiently by using computers to analyse the data gathered.

With the advance of computer technology there is no difficulty in compiling statistics and generating maintenance schedules from the statistics. The problem lies in the gathering of the data. Amazingly, it is still being done manually onto bits of paper, often using “less than perfect” tread probes. The whole process leads to poor quality data on reams of paper that more often than not can not be analysed correctly. It is also a system which cannot function in wet weather!

Mark Longden, MD of RL Automotive, saw an opportunity to develop digital tyre reading equipment that made life simpler for the collector of the data. It also created a platform that can, with wireless technology, enter and then deliver data from the tyre depth gauge into the vehicle record back at base. Where relevant, this same information can then effortlessly be collated at Head Office and the information used in countless ways.

At the same time as developing this digital product range, the company has built up a mainstream Tyre Service Products distribution business by selecting high quality products from around the world.

15097

Equipment Services PLC: The Yorkshire name in garage equipment

Ten years of quiet growth have brought this Bradford firm to a leading position in the automotive equipment market.

Equipment Services is a Bradford-based garage equipment supplier specialising in the fast-fit sector. The business was founded in 1993 as a garage equipment service and maintenance operation. As the business developed the then partners decided that since there was a potential volume to be attained by the business they would make the move into selling equipment and latterly to become importers and sole distributors of garage equipment wherever the opportunity arose.

As the stature of the company grew so too did the service contracts, amongst which could be counted Charlie Browns, Chessington Tyres, F1 Auto Centres, Kwik-Fit and Nationwide Autocentres. The business grew on these contracts and in spring 2003, Equipment Services became a UK PLC. The company now has five directors, John Prout is the managing director, Carl Allenson the sales and marketing director responsible for all sales operations and marketing the company. Paul Duckworth the service director looks after the service operation and Andrew Marshall the field operations director is responsible for ongoing training, development and quality in the field. The financial director is B.S. Panesar whom has a wealth of business and financial knowledge has recently been named by Natwest entrepreneur of the year 2003.

In the space of five years Equipment Services has committed to volume and through its sole distribution contracts with Teco, tyre changers and wheel balancing equipment, Parise compressors and OMA vehicle lifts. The company offers a full equipment range under its own Equip brand and also has a full range of reconditioned and used garage equipment to meet all requirements.

The head office in Bradford has a fully fitted showroom and training centre with a comprehensive range of fully operational equipment always on display for both sales and training purposes.

Equipment Services also offer a range of service options on three main levels. There is a nationwide service division responding to call outs to service and repair equipment wherever it may be in the UK at the beck and call of the trade at large. Secondly there is a preventative maintenance division carrying out preventative maintenance work under contract, and thirdly there is the nationwide installation division that undertakes anything from installing a single tyre changer through to complete garage design and fitting out services.

Equipment Services also offer a comprehensive project management facility from initial measurements and drawings through to commissioning equipment. The company has a great deal of experience in working with the vehicle inspectorate and installing and calibrating equipment to VI standards and will readily undertake class 1,2,4,5 and 7 full MoT bay installation to turnkey standard.

15098

Pirelli First Half Figures

First half sales of the Pirelli group totalled 3.022 billion Euro, down 9.8 per cent on the 1H 2002 figure of 3.35 bn Euro, preliminary, unaudited figures show. However, when exchange rate fluctuations and changes due to consolidation are factored out, sales actually increased by 3.3 per cent. Operating income was 118 million Euro, due largely to a growth (net of exchange rates) in the tyre sector of 14.4 per cent, with sales at 1.509 bn Euro.

15099

Continental Results Exceed Expectations

Continental’s 2Q results have exceeded the forecasts of industry experts.
Compared with 2Q 2002, turnover was down 3.4 per cent to 2.825 billion Euro
(2.925 bn), but operating income rose 11.3 per cent to 216 million Euro
(194 m). The group’s operating margin was 7.6 per cent and, while the car
tyre and truck tyre divisions were slightly below this (6.7 and 7.4 per
cent). ContiTech and Continental Automotive Systems achieved 8.5 and 9.0
peer cent respectively. Conti’s CFO Dr. Hippe was cautious about the
second half of the year, although he said that annual operating profits
could “considerably exceed” the stated target of 700 million Euro.

15100

Q2 Net Loss For Goodyear, But Sales Rise

Goodyear’s second quarter (Q2) figures reveal that the company lost $73.6 million, compared to a net income in Q2 last year of $28.9 m. Sales were up nearly 8 per cent at $3.8 billion (3.5 bn), but volumes were down half a million units to 52.8 million pieces. Chairman and CEO Robert J. Keegan described the results as „disappointing“, but said he was encouraged by the „numerous positive trends„ (notably operations outside North America) and he was „optimistic“ about the turnaround plans.

15101

Michelin’s First Half Figures – A Mixed Bag

Michelin has released financial figures for the first half of the year. Sales were down 6 per cent to 7.348 billion Euro, but excluding currency effects, this would be a rise of 4.4 per cent. Operating profit rose one per cent to 578 million Euro and net income was 165 million Euro; below what was expected, but this was almost entirely due to charges of 178 million Euro for restructuring in Spain. Truck tyre sales were better than expected, while car tyre revenues were worse. Michelin’s debt increased by 0.1 billion Euro to 3.9 billion, due largely to the acquisition of the Viborg chain.

15102

Trelleborg Wheel Systems – First Half Year Results

Figures show that Trelleborg Wheel Systems achieved sales for the first half of the year of 1,470 million Swedish Kroner (SEK), or 160.2 million Euro. Operating profit was up 33 per cent to SEK 84 million (9.15 m Euro), compared with last year’s first half figure of SEK 63 million (6.87 m Euro). During the second quarter, turnover was SEK 713 million (77.7 m Euro) and operating profit was SEK 39 million (4.25 m Euro).

15103

Cooper Q2 Results

Cooper Tire & Rubber Company has reported results for the second quarter of the year. Net income was $13 million, compared with the all-time record earnings of $39 m for Q2 last year. Turnover was up slightly at $840 m ($836 m) and operating profit was $38 m. The Tire Group reported turnover up 4 per cent to $432 m ($414 m) while operating profit declined to $14 m from $37 m in Q2 2002. The high cost of raw materials was blamed. Overall, unit sales of Cooper brand tyres rose 8 per cent in the quarter.

15104

EC 108 and 109 To Be Mandatory In UK

EC regulations 108 and 109, covering type approval for car and truck retreads, will become compulsory in the UK from 1st January 2004. The regulations, which have been available for use on a voluntary basis since June 1998, should help boost public confidence in the quality and performance of retreaded tyres, says the Retread Manufacturers Association.

15105

Retreading Legislation – Lack of direction from Brussels

“The European Truck Tyre retreading industry is healthy and provides the transport industry with high quality products which allows them to reduce tyre cost and transport cost. However, retread products are not legislatively treated equally to new tyres, and this is a growing threat to sustained growth for this industry”. The legislative problems faced by the retreading industry were outlined to T & A by Lennart Lindström – product manager at Bandag Europe – during Autopromotec 2003. The basis for the EU legislative framework is the Whole Vehicle Type Approval (WVTA) directive 70/156/EEC. This directive sets out the rules for the use and production of many vehicle parts, including tyres. Up until now, the WVTA has not taken into account the existence of retreaded tyres, nor have any of the quite numerous regulations and directives that exist for new tyres. All legislative work on tyres in the EU is solely focusing on new tyres. The WVTA does not yet exist for trucks, but work is underway to introduce this certification for trucks, and then new truck tyres must meet the same requirements. The certification principle for type approval implies that each authority grants authorisation for a vehicle, a system, a component (like tyres) and this authority remains solely responsible for the conformity of production of the certified product. For retreads ECE Regulations 108 (passenger tyres) and 109 (truck tyres) exists. Despite industry efforts to introduce ECE 108 and 109 into an EU mandatory directive, Brussels has not taken any visible initiative. In absence of the expected and desired EU directive, some member states have started to introduce ECE regulations 108 and 109 into national mandatory legislation. This is the case in France, Spain, Poland, Croatia and the Czech Republic. Other countries like the UK, Sweden and Denmark have begun the national legislative process to introduce them. This still leaves a great number of countries with no active plans to introduce these regulations. It is estimated that over 200 retread companies out of approximately 700 active companies in Western Europe have gained their ECE 109 certificate to date. Absence of equal rules creates an unfair competitive market. Bandag are suggesting that it is necessary to form a retread industry interest group, in order to proactively define potential future legislative content on matters like noise, wet traction and rolling resistance, and work in close co-operation with legislative bodies. BIPAVER and BLIC should, perhaps, take the joint initiative to the creation of such a group. The need to recruit new members to BIPAVER, including supplier members was emphasised by RMA secretariat, Sheila Ikin. This is especially relevant now that BIPAVER is focused on the interests of the retreading industry. One of the causes taken up is the unjustified ban on the importation of retreaded tyres, currently operative in 11 countries known to the RMA. There is a definite need to protect the retread industry against damaging legislation, hence the moves by BIPAVER to persuade Brussels to transpose ECE 108 and 109 from a recommendation to a directive.

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