Founded in 1898 by Frank Seiberling, The Goodyear Tire & Rubber Company is an American multinational tyre manufacturing company based in Akron, Ohio. It is one of the oldest, biggest and best-known tyremakers in the world. Goodyear makes tyres for automobiles, commercial trucks, light trucks, motorcycles, SUVs, racing cars, aeroplanes, farm equipment and heavy earth-mover machinery. Find all the news and analysis you need relating to Goodyear here.
Firestone would be relieved to know that the company’s tyres were not to blame for three bus fires in San Diego, but will be despairing to know that the company failed to meet their contractual obligation to maintain the tyres under a leasing arrangement and will still face action from the San Diego Transit company. San Diego Transit is now in negotiation with Michelin and Goodyear to replace the 2000 bus tyres and supply a maintenance contract.
HMI (short for Trade Marketing Initiative) is a special relationship between the tyre trade and the industry, offered in Germany only by Goodyear. The marketing programme has been widened over the past year; for example the long-awaited Tyre Soft 2 software is now available at long last. At the annual meeting in Sonthofen, Mr. Zubanovic, managing director of Goodyear Handels Systeme GmbH, expressed little concern despite the problems the organisation is facing. He said that the tyre trade has to go for growth and seize every opportunity to expand – dealers who do not will prove to be uncompetitive in the long run. Goodyear MD Jarro Kaplan, who is president of Goodyear Eastern Europe, pointed out that teamwork with Goodyear is beneficial because it “always guarantees the trade a good year.”
More Goodyear run-flat tyres are on the road than any other. A study by J.D. Power and Associates says that nearly seven out of eight consumers place run-flat tyres at the top of their list of desired features. The report shows that consumers want safety-related features more than sophisticated entertainment systems or other convenience features in their new vehicles.
Members of the German buying association of free tyre dealers “EFR” met for their annual meeting at the former Expo exhibition centre. Doors were closed when they reviewed the past year and analysed the weak points, as well as when they tried to set the agenda for the year 2001. No doubt EFR is known on the market as a “Michelin buying association”, which, regarded from the opposite side, is as wrong as if FRI were to be called a “Goodyear buying association”. But this is the wrong place to discuss both sides’ differences. In fact, EFR is representing a group with a very friendly relationship towards Michelin and therefore selling their products as a priority. And of course Michelin itself is doing everything to satisfy the EFR dealers’ demands, as with more than 300 specialised tyre dealers they form a solid distribution basis for their products. After being in low gear for several years, Michelin has had a brilliant start to the new millennium, while profiting from the seeds they have been sowing for the past two or three years. However, until recently, with their first brand the French have steadily been losing market shares all over Europe and most of all in Germany – although no loss of quantity and admittedly from a high ranking – now they are ready for the battle with the competition in their home market Europe, more than ever. As Michelin wants to win the race, Patrice Kéfalas could not miss a favourable opportunity: “Michelin goes Formula One” was the message that he announced in front of the EFR tyre dealers. Hence, the race is on at all levels. With Michelin tyres Patrice Kéfalas does not only want to win for merely for the sake of being the winner, he also wants to realise an image profit, which should end up in either greater quantities or better selling prices too between industry and trade or trade and consumer, or even both.
In London, Goodyear officially launched its GT3 passenger car tyre – the first tyre to incorporate new “BioTred” technology, in which carbon black and silica fillers are replaced by starch obtained from maize plants. Not only is the T-rated tyre more fuel efficient, says Goodyear, but because maize is a renewable resource and converts carbon dioxide to oxygen while it grows, the GT3 is claimed to be the most environmentally-friendly tyre ever. Goodyear released news of the new technology earlier this year, but this was the first time that the tyre had been shown to the UK press.
In Europe the Kelly brand will be removed as part of a plan to reduce the number of Goodyear’s brands in Europe. Kelly’s removal is expected to be followed by other brands (Sava, Debica), with appeal only in Eastern Europe. The decision to scrap Kelly comes only seven months after the brand was comprehensively relaunched in the UK at Tyrexpo Europe.
Mark D. Ponton (50) has been appointed vice president of materials management for Goodyear in the USA. The post entails looking after Goodyear’s initiatives in warehousing and distribution in North America.
Goodyear Tire & Rubber has appointed Kevin Kramer to the post of director of marketing, consumer tyres for North American Tire. Kramer has been with Goodyear for 18 years and has held numerous marketing appointments in the USA and Singapore. He is replaced in his former post of general business manager for the Southern Region by Steve McClellan, recently general manager of Allied Tires, a Goodyear-owned subsidiary.
Reports from financial and industry analysts generally agree that the tyre industry, among others, is facing a difficult time with market conditions having worsened recently. Despite this, the Deutsche Bank AG, London is recommending Michelin shares as a “buy”, even though the organisation is downgrading its 2001 profits forecast for the French manufacturer by 3%.
The prospects for manufacturers of heavy trucks in the USA are rather gloomy for this year, as experts are expecting a decline of up to 30 per cent. Despite this, analysts are not pessimistic about the prospects for Michelin, as the turnover from OE sales of truck tyres is only about 3 per cent of total group turnover. Better results than for 1999 are expected too for Goodyear, due to the downward trend in raw material prices and, last but not least, the recently-announced tyre price increases look like they will stick.
James M. Zimmerman (57) has been elected to the board of directors of the Goodyear Tire & Rubber Co. He joins the company from Federated Department Stores Inc., where he was chairman and CEO, and has extensive experience in retail. It was also announced that Katherine G. Farley, senior managing director of Tishman Speyer Properties Inc., has resigned from the Goodyear board after three years’ service.
The new Cadillac Roadster in North America will be introduced with PAX as original equipment. Audi is also interested in using PAX, Michelin boss Edouard Michelin revealed in an interview with Modern Tire Dealer. The joint venture with Goodyear has proved to be very efficient in the development of PAX.
There are a lot of patents, some first registered in the 60s, concerning retreading using a ring system. Most of the patents belong to Marangoni, the majority shareholder of Ellerbrock. But the new tyre manufacturers were also thinking about the idea of a ring. There were also developments by Goodyear very similar to the Marangoni system, so that it came to a legal settlement. But this was long ago and ancient history – now Goodyear offers its own ring called “Uni-Circle”. Until now only one plant has existed in Europe where these rings are produced: in the Marangoni factory in Frosinone (Italy) so you don’t need to be a detective to understand that the Goodyear source of Uni-Circle is the Marangoni plant. Now Ellerbrock has also begun production of the tread in form of a ring, also called Ringtread system. Ellerbrock will be responsible for the markets of Germany, Austria, Switzerland and Denmark. Other countries may be added later, because Ellerbrock will produce the modern tread patterns popular in central Europe. Capacity of the new facility will be 300 rings per day. One benefit of the rings in comparison with traditional flat tread patterns for retreading is the higher flexibility in production: charges of twenty rings are no problems in the new plant. But there are also benefits for the retreaders: they can save material, time, and because the process is totally automated, mistakes in production caused by human error – which might lead to splice separations – are nearly impossible. And the ring looks exactly like a new tyre. The target of Ellerbrock with the Ringtread system is not to change from traditional truck tyre retreading but to find new customers.
Unseasonable wet weather has boosted sales of Goodyear’s Aquatread 3 passenger car tyre in North America. Sales of the wet weather tyre have risen by 30%, setting record sales levels for the premium tyre brand. Some nine out of ten users said they would buy the tyre again, setting new records in customer loyalty achievements.
Goodyear and Siemens VDO have announced plans to develop a progressive tyre pressure monitoring system which can be introduced to the market at an early date. The co-operation brings together Goodyear’s knowledge in the fields of tyre pressure control, sensors and interpretation of tyre temperature and pressure, with the know-how of Siemens VDO in electronics and common automotive systems.
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