SmarTire Systems Inc. (OTCBB: SMTR) announced the commercial availability of SmarTire for Motorcycles and delivers already the first shipments to its U.S. distributors. SmarTire for Motorcycles is the latest addition to the Company’s family of products designed to meet the specific needs of selected target markets.
SmarTire Systems Inc. has signed a distribution agreement with Lexani Wheel Corp., a premier manufacturer of luxury alloy wheels based in California. Lexani will bundle SmarTire’s tyre pressure monitoring system with its innovative Johnson line of custom wheels. Lexani wheels are sold through an extensive dealer base and are well known in the American automotive aftermarket, boasting a prestigious list of clients and countless award-winning show vehicles. A purchase order accompanied the distribution agreement.
With the forecast of a turnover of 190 million Euro in 2003, wheel producer BBS (Germany) will significantly improve on its 2002 results (175 m). For the first nine months of this business year the company has announced an increase in turnover of 9.1 per cent and so was better than the industry average. The gain comes from OE business with an increase of 14 per cent, whereas aftermarket and income from motorsports and licensing was below the 2002 figure. The share of foreign business has fallen to 49.2 per cent. BBS expects to make a small profit in 2003.
Hayes Lemmerz International’s commercial highway and aftermarket group signed a long-term deal to provide iron hubs and brake drums to Hendrickson Trailer Suspension Systems for trailer applications. Hayes Lemmerz will also expand the supply of brake drums and hubs to Hendrickson Trailer for lightweight vehicle applications.
Hayes Lemmerz International has announced that its Commercial Highway & Aftermarket Group has a long term agreement with Hendrickson Trailer Suspension Systems. This agreement covers the supply of Ductile Iron hubs and CentruCast brake drums for HN and HP trailer applications as well as product development of future wheel-end components for the On Highway Transportation Industry. Additionally, Hayes Lemmerz will continue to expand supply of Genuine CentriFuse Brake Drums and Centrulite Hubs to Hendrickson Trailer Suspension Systems for lightweight applications.
Federal-Mogul Corporation has opened a training centre and three satellite learning facilities at manufacturing locations in Germany for aftermarket employees and customers.
After a lengthy period of research and consultation, the AutoExCel exhibition and event for the UK automotive aftermarket, is to go ahead in 2005, say organisers London Eventco. It will cover all sectors and products in the aftermarket and will be held at London’s latest exhibition facility, the ExCel complex in Docklands, from April 24-26 2005.
Vredestein UK has signed up to exhibit at Tyre ASI, the UK exhibition being held at the NEC this January. It is an integral part of the Aftermarket Show and runs alongside Autosport International. The visitor profile was a major factor in Vredestein’s decision and the company’s stand will feature the Giugiaro Design Aston Martin 2020.
SmarTire has appointed Beijing Boom Technology Co. Ltd. as the master distributor for its tyre pressure monitoring systems in China. Under the agreement, the Chinese company will purchase $1.5 million worth of aftermarket TPMS over the next twelve months and $3.9 million worth in the twelve months commencing 1st September 2004.
Goodyear claims to have increased replacement tyre shipments by 4 per cent over the previous year’s level. In August industry shipments of tyres to OE declined by 11 percent, Goodyear’s decline was less than the industry average. However shipments of commercial replacement tyres declined by more than the industry level of 10 per cent. Additionally product mix was unfavourable due to market share gains by Dunlop, Kelly and associated brands. Goodyear shipments of commercial OE tyres fell at the industry rate of 10.5 per cent.
Outside the North American market Goodyear performed well in all other areas with increases in aftermarket car and tyres in every region, but some decline in most markets for commercial vehicle tyres. OE supply varied depending upon the application of the company’s selective OE strategy.
The Council of the NTDA has announced plans for the 2004 NTDA Conference to take place at Marbella on 23rd – 24th September. The conference will take the open format of the previous year’s event and will incorporate all elements of the aftermarket trade, being billed as the Entyre Aftermarket Conference.
For many in the UK tyre trade the motorcycle sector is a bit of an enigma. Bikers need tyres, but they also need specialist attention. The car buyer generally will fit whatever the dealer has to offer, surprisingly often without question. The Motorcyclist though is another fish altogether. Not only does the motorcyclist generally talk a great deal more about tyres, he, or she, will know more about them and will be more brand aware than the car driver. That creates some difficulty for the fast fit outlet used to pushing the tyres they want to sell. The case is compounded by the fact that, unlike the auto sector where tyres may be specifically tuned for OE supply, and the aftermarket offered a best option as a replacement tyre across the complete size range; the motorcycle sector retains those finely tuned OE specifications for aftermarket fit (by and large). It is therefore important, for example, that the Honda and the Yamaha, which both use the same size and range of Bridgestone tyre as OE, say, 120/70ZR17 BT 020, are offered the correct suffix code tyre to suit their bike. There are ten variations of this tyre from Bridgestone alone in this particular size. It is important that the sales staff are aware of the effect of fitting the wrong “120/70ZR17 BT 020” tyre to a bike – especially higher performance road bikes. Harmonics can induce “shimmy” in the steering, or vibration in the frame, or just make the bike noisy and uncomfortable to ride. At Dunlop Steve Male takes the explanation a stage further. “Manufacturers specify the bike and tell us what they expect from the tyre. Together we specify a tyre and tune it exactly for the bike as an OE fit. That OE fit is a global option and represents what the manufacturer of the bike believes is the correct global tyre for that bike. We will supply that OE tyre to the manufacturer. However, our own R&D team will design further options, refining the OE specification for different markets. There will possibly still be an exact OE spec. available for the bike, but there may also be a European spec., an Asian spec., and a North American spec., each tuned to the bike and the prevailing conditions.”
The Company reported a net loss of $6.8 million ($0.41 per share) 2002 compared with a net loss of $5.5 million ($0.39 per share) in 2001. Gross revenue for 2002 totalled $1.0 million, up from $0.8 million for 2001.
At Superior Industries 3rd quarter conference call the company announced expected growth of 15 per cent every year for the next three years. This was based on the expected demand from the OE market where the company was seeing growth in supplying the key manufacturers. Shipments to DaimlerChrysler were up to 6 per cent, whilst there was a 15 per cent growth in supplies to non-Ford/GM companies. Market share at Ford/GM continued to increase. However, the aftermarket revenue for the third quarter stood at 903,000 Dollars. Superior accepted that this was an indication that this sector of the market was nearing an end for the company. Current US capacity is around 14.5 million units, plus potentially 2 million from Hungary. In order to meet new demand the company was expanding production capacity at Rogers, Arkansas and at two other plants. Plus there was the possibility of another new plant being developed in the next two years, possibly in China producing wheels exclusively for the export market.
1997 marked the US-comeback for BFGoodrich Tires in the agricultural segment, where the brand had a long tradition. Now BFGoodrich Tires – well-known for off road and car tyres – is returning to the European agricultural tyre sector as the second world brand in Michelin’s multi-brand-strategy. Across the world and in the tyre segments where Michelin is well-known for attributes like “premium, innovator, top technology”, BFGoodrich Tires will be positioned in the “value for money” segment, in original equipment and the aftermarket also. Overlapping in some sub segments such as front and implement tyres with the brands Stomil/kormoran and Taurus will, in the long run, be resolved in favour of BFGoodrich.
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