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Plimsoll Produces Tyre Prosperity League Table

A new league table from leading financial analysts Plimsoll Publishing aims to provide an answer to that age-old question in the Tyres, Exhausts & Batteries market: Why do some companies fail and others prosper?

The equation is not as simple as strong sales equals survival. Nor is the success rate of a firm automatically affected by market conditions. Instead, they say, it depends on the ingredients in a finely-balanced recipe that includes good margins, low borrowing, responsible management and foresight.

Plimsoll’s new analysis of the market weighs all these ingredients and turns them into a unique one-page snapshot of each company’s prospects. From that, it establishes a league table based on 1000 leading firms that looks like this: 278 companies are in a strong position, with a pre-tax margin of 10 per cent; 116 are in the good sector, on 4 per cent margins; 160 are rated as mediocre, on 3 per cent; 272 are in the “caution” category and 174 are in the “danger” range.

25th May 2007/by Tyrepress Editors

Broadway Aiming for ‘World Class’ Wholesaling

Broadway Tyres has unveiled a new corporate identity, pointing to the future development of the business. Jonathan West, the company’s founder and Chairman, addressed staff, main suppliers and industry leaders who are invited to preview the new strategy and new look at a reception at Wycombe Wanderer’s.

The new look consists of a radical new corporate livery together with a new strapline ‘High Performance Delivery’ and the introduction of the ‘Broadway B’, configured from two tyre images. Most strikingly, the company’s fleet of 40 vehicles will be covered with an all-over wrap featuring some specially commissioned photography.

Broadway Tyres has invested over £150,000 into the rebranding, believing it is a natural progression for the £25 million annual turnover company, which is looking to increase its share of the South East’s tyre market to 20 per cent over the next two years, by extending its deliveries, with an enlarged fleet and improved storage facilities at its depots.

25th May 2007/by Tyrepress Editors

Riding the Wave

The surface acoustic wave (SAW) tyre pressure monitoring technology that Transense Technologies plc has specialised in since the company’s establishment in 1991 will be used to produce the automotive industry’s first piezo-electric surface acoustic wave (SAW) sensor based system. In mid-May Texas Instruments announced their selection of Transense Technologies’ TMS3 20F28X digital signal controller as a key component in the development of this new system, a decision that will see the Oxford-based company supplying a market where, come September 1, all new light motor vehicles registered must be equipped with tyre pressure technology that alerts drivers of significant tyre under-inflation.

16th May 2007/by Tyrepress Editors

Right To Repair Under Threat

Did you know that something as straightforward as replacing a battery or a bulb could soon mean a car will refuse to do as its told? Did you know that as little as changing a tyre on a some vehicles with tyre pressure monitoring systems (TPMS) can set off a dashboard warning light? As David White said in his introduction to the NTDA organised event the “Right to Repair” issue is a “topic that has serious implications for you and your business.”

Certainly, an impressive line-up of speakers had been assembled, namely Dave Garratt, Director Garage Equipment Association; Mike Owen, of the Retail Motor Industry Federation and Bob Davis, Head of Aftermarket Section of the SMMT. Davis laid special emphasis on the fact that he was involved with the aftermarket section of the SMMT and not the manufacturers’, for reasons that will become plain.

11th May 2007/by Tyrepress Editors

Retrofitted Accessories “Can Cause Premature Battery Death”

Varta Automotive Batteries says that recent evidence from both sides of the Atlantic of a growing trend in premature battery failure caused by the retrofitting of power-sapping accessories has again raised the issue of like-for-like battery fitment.

RAC patrols attending more than half the call-outs in 2006 believe the use of in-car accessories has resulted in an increase in flat batteries. In the USA, a leading car customiser has experienced an increase in reported battery failures from customers who have add-on electronics such as i-pods and Sat Nav systems.
This incidence of batteries “dying young” is likely to have an increased impact on the aftermarket; recent SMMT figures show that sales of retrofitted in-car entertainment and Sat Nav systems grew between 2001 and 2005 from 100,000 to almost 1.9 million units.

Varta’s technicians warn that unless owners fitting these accessories upgraded their batteries to the same specification that would have been used by the vehicle manufacturer had the accessories been factory fitted, it could lead to premature battery failure.

26th April 2007/by Tyrepress Editors

Stuntman Gets His Kicks Repairing Tyres

Indian motorcycle stuntman and motor mechanic Dashrathi Parichha claims he has developed a device that will prevent motorcyclists becoming stranded with flat tyres. The kit he has developed is small enough to fit inside a motorcycle’s toolbox, and requires no batteries or motor – all the user has to do to make it work is repeatedly kick start his bike.

Central to the device is a one-way valve that is connected to a hose and a meter that indicates the amount of air pumped. In the event of a flat tyre or puncture, the rider must simply remove one of the motorcycle’s spark plugs, attach the device, and then connect the hose to the tyre’s air valve. Once that is done it is time to get kicking – this moves the cycle’s pistons back and forth, pushing air down the hose. Mr. Parichha claims that about 20 to 25 kicks is sufficient to fill a tyre. However he adds that is essential to first cut off the supply of fuel to the engine, otherwise the rider will end up with a tyre filled with a highly flammable liquid.

18th April 2007/by Tyrepress Editors

Report: 85 UK Tyre Companies Are Takeover Targets

At least 85 UK tyres, exhausts & batteries firms are prime targets for a takeover and another 113 could be sold off by their parent companies, according to a new report by independent business analysts Plimsoll Publishing. At the other end of the scale are 27 major companies that are expanding rapidly, largely through acquisitions, and 76 “predators” who are using the misfortune of others to clean up in the market.

Plimsoll’s senior analyst, David Pattison, said: “The 85 takeover targets we have identified generally have a similar profile – they are privately owned, are in financial difficulty and have owners who are approaching retirement. Any firm in this position should be listening to the warning bells, because its potential selling price will be in the bargain basement. The other 113 distressed companies are operating as divisions of larger parents. I’m fairly certain that conversations are going on behind closed doors about their future.”

16th April 2007/by Tyrepress Editors

Bridgestone Opens Middle East Truck Tyre Centre

On March 26 Bridgestone Middle East & Africa celebrated the inauguration of the Gulf region’s first of its kind truck tyre centre. Situated in the Ghala area of Muscat, Oman, the centre accommodates facilities for truck tyre fitting, balancing, wheel alignment and repairs, as wheel as passenger car tyre fitting. The centre has been established in conjunction with Towell Auto Centre, Bridgestone’s sole representative in Oman.

“It is a historic moment for Bridgestone Middle East & Africa and Towell Auto Centre to have the Truck Tyre Centre established in Oman,” said Bridgestone Middle East & Africa president Yujiro Kanahara. “It gives me great pride to be able to witness such a facility being extended to the people of Oman. World over, Bridgestone’s performance has been momentous and this occasion not only reinforces the bond between Bridgestone and Towell Auto Centre but also strengthens our stride to greater success.”

28th March 2007/by Tyrepress Editors

Michelin Supplies Brennan’s Bakery

Dublin-based Brennan’s Bakery is operating a 100 per cent Michelin new and replacement tyre policy across its fleet of commercial vehicles, which are used to deliver fresh bread throughout Ireland. Operating under the famous slogan “today’s bread today”, the Brennan’s Bakery fleet comprises 16 tractor units and trailers, together with two 18 tonne rigids, each fitted with E-segment regional tyres which are managed using Michelin’s Four Lives tyre policy.

Tom Brennan, Distribution Manager at Brennan’s Bakery, explains: “Vehicles in our fleet cover approximately 100,000 km a year, operating primarily during the night to ensure fresh bread is on the shelves of the major retail establishments each morning.

28th March 2007/by Tyrepress Editors

Varta Launches Free Scrap Battery Scheme

Battery manufacturer Varta is launching what it describes as “an innovative, free of charge, scrap battery collection and incentive service.” The scheme is also billed as “an industry first.” The scheme, which is being run in partnership with Europe’s largest waste collection network, gives distributors the chance to collect and return batteries in compliance with legislative requirements and also to recover the value of the lead contained in each scrap battery.

15th March 2007/by Tyrepress Editors

Michelin Shows Off eTire II

Five years after the debut of its original eTire Tyre Pressure Monitoring System (TPMS), Michelin has begun to show off its eTire II second-generation sensor equipment. This new eTire system incorporates technology devised by UK company Transense Technologies, who granted Honeywell a licence to develop their TPMS design on behalf of the French tyre maker.

11th January 2007/by Tyrepress Editors

Keep Yourself Fully Charged

It isn’t only a vehicle’s tyres that are vital to smooth running and stress free operating. Without proper care and attention a car’s battery charge capacity can be drastically reduced, resulting in breakdowns and the unnecessary disposal of otherwise serviceable batteries. To ensure that the most can be made from any battery, Traction has released the MPL charger.

15th December 2006/by Tyrepress Editors

Juma Al Majid Yokohama Partnership

Emirates tyre and battery distributor, Juma Al Majid Est recently celebrated its continuing partnership with Yokohama by running a test drive and launch day for the Japanese manufacturer’s Geolander range of tyres at the Expo Center, Sharjah. Present on the occasion were Mr Morita, general manager, Mr Hanatate, general manager, Mr Ghulam Nabi, department manager, Mr Longie, deputy GM, Mr Yoshimura, GM, Mr Miyamoto, GM, Mr Yagita, manager engineering and other senior officials. With the year 2006 so far having yielded strong results, Juma Al Majid Est. & Yokohama foresees a bright 2007 with the prime focus of quality service and customer satisfaction.

11th December 2006/by Tyrepress Editors

Plimsoll: Up to 5000 Jobs Could be Cut in 2007

2006 has been a highly competitive year for the tyres, exhausts & batteries industry, although some companies have been enjoying historically high margins. But 2007 promises even tougher times, according to David Pattison, senior analyst with Plimsoll. His findings are based on Plimsoll’s Portfolio Analysis – Tyres, Exhausts & Batteries.

Looking at the tyres, exhausts & batteries market over the past 12 months, while growth was a healthy 6 per cent, well above inflation, almost a third of the 1000 companies monitored by Plimsoll saw a fall in sales. This indicates that much of the growth is being shared by a select band of firms. The effect has been that the industry has begun heading in a new direction, and the companies which have found themselves lagging behind have been slow to recognise this.

11th December 2006/by Tyrepress Editors

Plimsoll: UK Tyre Industry Recipe For Uncertainty

A study of the UK’s leading tyres, exhausts and batteries companies suggests few are fully in control of their overall business strategy. The survey – by business analysts Plimsoll – indicates a remarkable inconsistency in the companies’ commercial and financial behaviour. Very few of the tyres, exhausts & batteries firms planning to come out on top in 2007 in terms of profit and sales will actually achieve their goals.

David Pattison, senior analyst on the project, says: “In today’s highly competitive tyres, exhausts and batteries market you cannot sit still for a minute. If you have seen sales increase this year and good profits, there is a fair chance that next year you will not be able to maintain it. Likewise, if you did not increase sales this year you are going to have to set a priority of trying to grab some growth in the next trading period.”

29th November 2006/by Tyrepress Editors