4×4 Tyres
These are exciting times for Hankook Tyre UK, as the company prepares to relocate its headquarters into a new warehouse and office complex, designed and built to the company’s own specifications. In terms of distance, the move is negligible – just half a mile or so down the road in Daventry, Northants – but in terms of what it means to the company, the significance is enormous.
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Michelin’s reputation for quality and durability has taken on a new meaning after a globetrotting couple drove 100,000 km, twice round the world, in their Land Rover Discovery on just two sets of Michelin 4×4 tyres.
“The tyres were fantastic throughout. The first set were used during the Northern Hemisphere section of the journey, and the second set took us through Australia, South America and then onto North Africa before heading back through Europe to England,” said Peter and Eileen Crichton. And all without a single puncture!
Back in 1990 or thereabouts Pirelli had just bought Armstrong and were busy launching their own 4×4 range and relaunching the Armstrong Tredloc Kevlar belted tyre for the 4×4 market.
The motoring press was busy telling the world that the 4×4 sector had peaked and would be on the decline by the following year. So much for the crystal ball gazing of the motoring press.
Today the 4×4 sector holds some 5 per cent of the UK market share – it may seem more as most 4×4 vehicles have a longer shelf life that their conventional counterparts, so probably hold a slightly larger share of the overall car parc. It would be interesting to know what the DVLA figures would be on that enquiry.
Throughout Europe there is no let up in the demand for 4×4 vehicles – even in markets where an off-road excursion could find the driver in serious trouble with the law. The 4×4 has developed from a serious tool for the military and agricultural sectors to a plaything and fashion symbol for the wealthy and the aspirational. Figures from Goodyear show that the utility sector of the market, the pick up and hard core 4×4 enthusiast has hardly shown any movement over the past four years, nor is it expected to in the coming years. The value market has dropped to a steady level at 90,000 units per year across Europe, the middle market too is stable. However, the luxury and crossover sectors of the SUV market are starting to show tremendous growth with the luxury sector doubling its volume from the 2000 figure of 101,000 units by 2007 whilst crossover vehicles will quadruple their volume in the same period it is these two sectors almost alone that will take the 4×4/SUV market from its current 706,000 units per annum to 840,000 units per annum by 2007.
In tyre terms this reads as growth in every sector – winter, S and T, and H and V rated, the market volume jumping from a total of 2,089,000 units in 1997 to 7,885,000 in 2007.
The two largest markets in Europe for 4×4 tyres are the UK and Germany, followed by Spain, Italy and France each having in excess of 10 per cent of the market. Scandinavia, Benelux, Switzerland, Greece, Portugal and Austria each have shares between 2 and 7 per cent of the market. With the whole of Eastern Europe taking only 4 per cent of the sector.
That 4 per cent for Eastern Europe suggests that, as with other sectors of the tyre market, the developing markets in Eastern Europe offer a phenomenal capacity for growth in this sector. In fact, if the move to car ownership in the East matches that ion the west, then the ultimate volume of the market could make Goodyear’s figures appear conservative.
The Micheldever wholesale operation has been rapidly growing but until 2001 had been concentrated in the South. However, the desire to replicate the wholesale success achieved in the South had led Tony to search for strategically placed wholesale premises initially in the Midlands and North of England, and when Southam Tyres came on the market in October 2001, Tony beat off competition from UK, European and Far Eastern wholesalers to acquire the Southam business. This immediately provided Micheldever with the UK’s most successful 4×4 tyre distributor and its specialist sales team, plus exclusive distribution rights to BFGoodrich 4×4, General Tire and Roadhog. However, due to virtually zero investment from its previous owners, the Southam warehouse was poorly equipped, lacking adequate storage systems and having an ageing fleet of vehicles.
The Micheldever investment came swiftly, with a new fleet, tyreracking systems and a vastly increased range of stock. The benefits of having the most comprehensive range of car and 4X4 tyres available in the Midlands quickly led to excellent sales results for the previously product starved Southam sales teams.
However, the move that really sent the message out that Micheldever had intentions to become a national player was the announcement of the new Halifax depot. A purpose built warehouse on four floors it will have a capacity for 600,000 tyres. By mid 2003 work was progressing well at Halifax, and finally in Sept 2003 the UK’s largest tyre warehouse commenced deliveries on a phased schedule.
Obviously for Micheldever the main thrust of the business at present is the development of the wholesale division and taking the offer to the trade across the UK. One of the much-vaunted drivers for offering national coverage is the potential to be developed in the franchised dealer network. The opportunity to supply tyres as first fit on fleet cars through the franchised dealers is reportedly enormous.
Tony Todd is adamant that there are two factors to being successful. The first is that you can’t sell it if you haven’t got it; the second is that you can’t do the job unless you have got the right tools and the right people in place.
Southam Tyres has announced that the company is to be the exclusive UK distributor for the Merit brand of 4×4 tyres from the USA. Southam specialises in tyres for 4×4 vehicles and the first sizes in the Merit range will be available to the trade this month.
Goodyear Dunlop has appointed Paul Wilde (39) as Director, Consumer Strategic Business Unit, UK. The role gives him responsibility for the consumer business of Goodyear Dunlop, covering car, van and 4×4 tyres. He joins Goodyear Dunlop from Reckitt Benckiser, where his responsibilities included Sales Director for China, General Manager, Philippines and Regional Project Director, East Asia.
The sector of high performance 4×4 vehicles is one which has grown by leaps and bounds recently. The vast majority of these vehicles never venture far from the tarmac and are built for speed and comfort. So too are the tyres. We take a look at the latest offering in this area from Goodyear.
Pirelli has ambitious plans to increase its presence on the US market, Dr. Francesco Gori told assembled journalists at a new tyre presentation in Georgia. Georgia had been chosen as it is the state where Pirelli’s latest MIRS factory has been built, and it is this technology that is at the heart of the new strategy. The new tyre being launched was the Scorpion STR, which is already homologated on vehicles such as the Ford Excursion and the Ford Super Duty F-250, and which is made in the MIRS factory. Dr. Gori said that $100 million had already been invested in Pirelli’s US operations and this would increase significantly over the next couple of years. Pirelli, he went on, plans “a dramatic increase in US growth”. The Scorpion STR combines Pirelli’s expertise in the areas of high performance and 4×4 tyres, to produce a product that can cope with the demands of modern-day vehicles. STR stands for Dynamic Stability, all weather Traction and load and speed Rating. Stability comes from the design and materials used; a dual ply radial carcass is flexible and resistant to give uniform support, improved comfort and better resistance to sidewall damage.
Continental’s 4x4Contact tyre has been placed top in a 4×4 tyre test, carried out by Auto Express magazine. The test leaned heavily towards on-road driving, with some off-road capability, reflecting the real-life use of the majority of 4×4 vehicles.
It has become a tradition that the tyre producer Continental invites the press to a “Santa Claus Event” around the 6th of December each year, presenting a certain topic/issue about the market. Whereas the group had been international for a couple of years, Conti returned to the original concept of an only German speaking group in 2001. Last year’s topic was the development and construction of 4×4 winter tyres and the problems this presents in addressing the contradictions in the expectations of performance. In addition, an optimisation of existing test methods of 4×4 tyres off the road was discussed with the journalists. The event took place in the Scottish Highlands. One outcome: Tyre suggestions for 4×4 cars can only ever be just a compromise – even if on a high level. The tyre has to perform well off the road and on the road. Safety aspects have to be taken into consideration as well: braking, handling and high speed performance have to be convincing as well. In addition there is the strong goal-conflict between driving performance and rollover danger. To put it in a nutshell: The ideal tyre that fits perfectly on every SUV for every use does not exist. This statement is as true as it is simple – and was demonstrated to the journalists’ group in the Highlands. The cars (Land Rover and M-Class) that had been equipped with Continental’s “4x4WinterContact” had to capitulate very soon in the muddy ground, because the tyres have been developed for different ground conditions. What makes it even more difficult for tyre producers is the fact, that there are insufficient testing standards for tyres on 4×4 cars. Tests are made either by the car industry of by the car magazines. Uniform procedures have not been developed yet. There can only be recommendations for the best case scenario.
The market for off road vehicles is constantly changing; also the market for suitable tyres and wheels. In the 80s Japanese car makers Toyota, Nissan, Suzuki, Mitsubishi and Honda created this market with 4 wheel drive vehicles able to be used on rough terrain. Now the 4×4 cars have become more suitable for use on the streets and the term Sport Utility Vehicle (SUV), replaces the former “Off Road Vehicle”. Car manufacturers like Ford, Chrysler, BMW and Mercedes have discovered that this has become more than just a niche market. Explorer, Cherokee, X5 and M-class are closer to luxury cars than those for use off the beaten track. Some tyre manufacturers have developed their off-road programme in this direction, whilst others have directly used the platform of existing passenger car tyres for this new generation of vehicles. The 4×4 tyre market will grow within the next few years as a lucrative market segment for the tyre industry, tyre dealers and also for the light alloy wheel business. Typical consumers in the 80s, with sparsely-equipped Suzukis, were not able to invest much money in tyres and wheels, but nowadays drivers of these cars are members of a more affluent society. The trends are very similar to passenger cars, with sizes becoming larger, faster, V, W, Y and Z speed ratings and higher load indices.
Michelin has introduced two new tyres for the 4×4 market, the Synchrone and Diamaris. The new tyres are aimed at the majority of 4×4 vehicles which rarely, if ever, venture off-road. The Synchrone replaces the Michelin XPC and is aimed at family orientated 4x4s such as Land Rover, Mitsubishi Shogun and Toyota Land Cruiser. The Diamaris is W rated and above and has been designed for super luxury high performance 4x4s like the BMW X5.
The Turkish tyre manufacturer Lassa is introducing a new 4×4 tyre to the market. The product, called “Competus,” has been designed for on-road and off-road use and will perform well even under extreme terrain conditions. The Competus will be available in nine sizes covering aspect ratios from 80 to 65. The first sizes will be available in early summer and the complete range at the beginning of autumn.
Continental has announced that the prices of its passenger, van and 4×4 tyres sold in Germany will go up by four per cent from 1st August. Higher costs of raw materials are being blamed for the increase, particularly the price of synthetic rubber and carbon black. The price hike does not apply to markets outside Germany.
With three new tyres, named “4x4Contact”, “4x4SportContact” and “4x4WinterContact”, the German tyre manufacturer wants to establish its leading brand in the segment of sports utility vehicles (SUV). And this segment seems to be quite interesting: According to a Continental market analysis the number of 4×4 vehicles in Europe is expected to double by the year 2005 compared to 1995 and leading to a growing market for 4×4 tyres. Some reasons are that new fashionable/stylish compact SUVs which are faster, fuel efficient and easier to drive or larger SUVs offering a high load carrying space and/or seating capacity are stimulating the demand. As a result SUVs are increasingly becoming an alternative to standard cars. Therefore the focus of the three 4×4 tyres is for on-road use, but for the future Continental plans to launch all-terrain and off road tyres, too. Meanwhile the “4x4Contact” is the tyre for compact and medium range SUV, whereas the “4x4SportContact” has a more sporty image. Fast and high powered cars are the target for this tyre. The “4x4WinterContact” – as the name suggests – is the specialist for the colder time of the year. European production of the tyres was launched recently and later this year they will also be manufactured in USA.
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