A. T. Kearney and the weekly magazine Produktion held a competition for “the best factory of the year”. 80 plants were nominated and the winner of the first prize for “outstanding manufacturing processes” was the Conti Teves factory in Rheinböllen, which produces brake components.
The fifth annual meeting of the MFP partners, held by invitation of Michelin this year at Karlsruhe, had new performance standards for market progress, “Markt-Förderungs-Programm” (MFP), and current products as the main themes of its agenda. Approximately 500 guests had gathered under the slogan “Gemeinsam am Markt erfolgreich” (Successful in the Market Through Unity). Patrice Kéfalas, as spokesman for Michelin Germany’s sales management and the person responsible for the car and transporter tyre division, combined in his welcoming address the question: What added value can the MFP partner expect from the Michelin group? with a short résumé/look ahead, “We have increased our car and truck tyre production capacity considerably and improved price competitiveness. Now we are vigorously investing in our high-performance tyres. We shall also rejuvenate the Kléber and Riken products and their brand images. And we are doing all this with the aim of being successful with our partners and more successful than the competition.” The strength of the Michelin group with its more than ten per cent worldwide turnover growth last year also safeguards its partners’ future security, he said. Of increasing importance for the Clermont-Ferrand tyre manufacturer is the high-performance tyre market, not only because of the company’s commitment to Formula One. The market in fast tyres is booming, and Michelin is determined to emphasise its strong presence in this market with the new Pilot Primacy and Pilot Exalto. In order to be “successful in the market through unity” Michelin offers quite a number of solutions, which are described in the May issue of NEUE REIFENZEITUNG.
Competition authorities have approved the purchase of Rengsmestarit-Kumi-Helenius Group. Nokian bought the retail chain with 31 outlets and a turnover of 34 Million Euros in March 2000.
This year’s Commercial Vehicle show at the NEC was a combination of three exhibitions – the SMMT’s CV show, the IRTE Show and Tipcon. No fewer than 579 exhibitors filled 42,500 square metres of floor space. Held over three days, the event attracted a remarkable 22,556 visitors and was generally held to be a great success. The tyre sector was well-represented, with manufacturers, retreaders and service providers, illustrating the importance of the commercial fleet market to tyre companies. Competition in this sector of the tyre business is fierce, with margins consequently depressed. TYRES & ACCESSORIES spoke to ten tyre manufacturers and retreaders at the show and the overwhelming message was that customers were demanding ever-increasing amounts of information and more sophisticated back-up services. The actual product of the tyre, given that it is of an acceptable level of quality in the first place, appears to be of less and less importance in today’s market. An increasing number of fleet customers are looking for a partner to handle every aspect of their tyre policy, from supplying product to carrying out maintenance and servicing breakdowns. How do the smaller companies, which lack the resources of large manufacturers, survive in such an environment? Read the views of the following ten companies in the May issue of TYRES & ACCESSORIES. Bandag, Bandvulc, Bridgestone/Firestone, Continental, Dunlop, Goodyear, Marangoni Tread, Michelin, Truck Tyre Specialists and Vacu-Lug.
It was at the beginning of 1999 when Trelleborg Wheel Systems UK was formed as a result of the joint venture between Trelleborg and Pirelli’s agricultural tyre division. Clive Thawley is the managing director of the UK company and, in our article, he and product manager Robert Hughes talked of the first year or so since the merger; a year of consolidation and of learning. The changes not only affected the sales staff, who had to get to grips with a suddenly-expanded product range, but the customers wanted to know what was happening, and why. By keeping customers fully informed, Trelleborg Wheel Systems ensured that the reaction was a positive one. It is no secret that agriculture in the UK is facing a very tough time, and the possible consequences for a company that specialises in agricultural tyres are obvious. Fortunately, Trelleborg Wheel Systems has contracts with a number of original equipment manufacturers, for both Trelleborg and Pirelli brands. What of competition, especially with Sterling as high as it is? While it is true that some cheaper, imported tyres are finding their way on to the market, many farmers buy on benefits and value for money, rather than price alone. For these customers, the benefits of a premium brand outweigh the higher initial cost. The past year or so has been a period of integration and learning for Trelleborg Wheel Systems, and now the company is poised to reap the benefits of its hard preparation work. Read more in TYRES & ACCESSORIES 5/2000.
The Pirelli group has increased its turnover in the first quarter of this year by 18 p.c. The cable division achieved to a turnover of 1.05 billion Euro and an Operating Profit of 52 million Euro. The tyre division turnover increased by 12 p.c.up to 700 million Euro and the Operating Profit was 54 million Euro. Despite of fierce price competition Pirelli could achieve a 17 p.c. increase units and evidently win market shares.
Three years of litigation about breach of styling rights and unauthorised copying in accordance with paragraph 1 UWG (law on unfair competition) have ended with a verdict in favour of BBS by the Federal Court of Justice, so announces the wheel manufacturer. BBS had sued an Italian manufacturer for producing and distributing an imitation of the BBS RX wheel and for damages. Following the defendant’s reply, an expert opinion on the design and a hearing at the provincial law court in Frankfurt the BBS case was to a large extent conceded: The wheel made by the Italian producer was declared to be an imitation of the new BBS RX wheel, which is new, original and therefore protected. There followed an appeal, several postponements and the exchange of a number of documents at the higher provincial court in Frankfurt, and then this verdict: The appeal of the Italian manufacturer was rejected; there was no serious doubt that it was a copy, and appeal to the Federal Court was not allowed. The costs have to be borne by the appellant. Therefore the verdict of the higher provincial court in Frankfurt of 19th November 1998 has the force of law.
Michelin filed a lawsuit against Bandag for illegally restricting competition in the US-retread market. The law-suit contends that Bandag has engaged in anti-competitive practices, which create a monopoly for it in the sale and distribution of tire retread systems.
Assuming the approval of the Competition Commission, the Danish tyre dealer and retreading company Viborg Gruppen together with the British Legal & General Ventures Limited (LGV) will take over all the tyre distribution activities (150 service centres) of Gummi-Mayer retrospectively from 30th September 1999. The integration of Gummi-Mayer into the existing companies of Viborg Gruppen will create the largest independent distribution and service company in the European tyre business. At the beginning of the year Viborg/LGV took over the tyre distribution activities of Stinnes AG in Germany, Holland, France, Austria and Switzerland and now has a close-knit Europe-wide service net. The sale includes all domestic tyre distribution and service activities trading in Germany under the names Gummi-Mayer and Autechna. All employees will be retained by Viborg, which has the right to the use of the Gummi-Mayer name initially for a period of ten years. Pending the approval of the Competition Commission, Gummi-Mayer will continue to be run by Hans and Franz Mayer. After the incorporation of Gummi-Mayer Viborg Gruppen will have a turnover of nearly 1.4 billion marks with more than 3,000 employees.
Goodyear, who stopped supplying tyres for Formula 1 last season, has announced that, from next year, it will no longer supply tyres to the Indy Racing League (IRL) and Championship Auto Racing Teams (CART) in the USA. The company will concentrate on other forms of racing, such as NASCAR. Stu Grant, general manager for global race tyres, said that the decision will be reviewed and that he would not rule out a return to IRL, CART, nor Formula 1 competition.
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