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.
A judge in the USA has ordered Goodyear to pay almost $10 million compensation to 34 householders, for a faulty heating hose that was used in their homes. Goodyear, as manufacturer of the hose, and a now-defunct distributor of the product were found equally liable. The actual damages award against Goodyear was $4 million, with a further $5.7 million added in interest from the date of installation of the hose. Goodyear said it will appeal the decision.
SmarTire Systems has announced that it has signed an agreement in principle appointing Beijing Boom Technology Co. Ltd. as the master distributor of SmarTire’s Tyre Pressure Monitoring Systems (TPMS) in China. Beijing Boom Technology has agreed to purchase over $1.5 million in additional aftermarket passenger car TPMS systems at fixed intervals over the next twelve months. In order to maintain its status as SmarTire’s master distributor in China, Beijing Boom Technology must also purchase approximately 3.9 million dollars in additional aftermarket passenger car TPMS systems during the twelve-month period commencing September 1, 2004 and establish a network of certified dealers in all provinces of China by May 1, 2004.
South African company Tiger Wheels, which claims to be Africa’s largest producer of wheels and distributor of tyres, has reported an increase in profit for fiscal 2003 of 41 per cent, to 114,9 million Rand (14.7 million Euro). Tiger’s shares rose 3.6 per cent at the news, to reach 14.5 Rand (1.85 Euro).
STS Stapletons Tyres and Exhausts has joined Fit4Fleet, giving the company access to a national account facility. This is a boost to Fit4Fleet and perhaps gives an insight into the relationship between AA Tyrefit and Stapletons, founders of Tyreserve, which later became AA Tyrefit. The move puts Stapletons back in the running in terms of serving the fleet customers and also serves to boost Fit4Fleet, bringing their membership to 850 operational centres and some 350 mobiles. Fit4Fleet’s Dominic Bateson told T&A, “We are delighted to have Stapletons on board. The company has excellent coverage backed by excellent brand availability through its wholesale operation. Stapleton’s is also very experienced in fleet work and understands the demanding nature of the clients and has suitably strong operational controls. These are characteristics that are very important when dealing with the fleet customers.” This move is explained by strategic developments at AA Tyrefit, formerly the Stapletons’ originated Tyreserve. Says David Goodyear of AA Tyrefit, “The traditional fast-fit centre is a thing of the past and tyre networks that maintain them simply do not have the right structure to survive in the future. We aim to offer the flexibility, pricing and service that the tyre customer rightly expects.” Goodyear cites research by AA Tyrefit that suggests just four per cent of customers using a mobile service would return to a fast fit outlet. ”The service advantage is so strong,” argues Goodyear, “that the biggest hurdle we face is the fact that people expect there to be a premium for mobile fitting. There isn’t. Our mobile fitting is free.” Such is the confidence in building the mobile service that AA Tyrefit has eschewed the independent networks completely. David Goodyear explains, “We can provide the entire service capacity we need from within our mobile resources. The need for the independent network has passed, although we are still maintaining relationships with those outlets that offer mobile tyre fitting to provide back-up to our own units.” In further moves to hit its target of becoming the largest tyre distributor in the UK by 2007 (David Goodyear, T&A April 2003 p 37) the company has further developed its mobile fleet, which has now reached a total of 70 mobiles with a further 200 to be commissioned by the year-end, rising to 500 units by 2005.
Exhausts are big business for fast-fits, but like tyres, the market is suffering from a proliferation of part numbers. T&A talks to a full line manufacturer, a short range manufacturer and a regional exhaust distributor to try and find out what is happening in the exhaust sector in the UK.
Group Tyre has successfully negotiated with Deldo to become the exclusive UK distributor for the Sunny brand; a tyre for which Deldo has exclusive European rights. Sunny tyres are available in 17 sizes, for wheels up to 17″, with new sizes being added as the brand develops. It joins Group’s other exclusive offerings of Stunner, Trayal and Eurotour tyres. Deldo’s decision to choose Group Tyre underlines the latter’s performance as a national distributor, furthermore, one who has the strength and ability to establish the brand in the UK.
US national distributor American Tire Distributors Inc (ATD) has reported its figures for 2002. Net sales declined 4.3 per cent to $1.06 billion, while pre-tax profits in 2002 were $12.9 million, compared to a pre-tax loss in 2001 of $23.8 million. Net income rose to $37.4 million, as against a net loss in 2001 of $30.9 million. Part of the improvement is due to a 19.3 per cent reduction in operating expenses. ATD operates 62 distribution centres in 35 states and employs 1,900 people nationwide.
Group Tyre has successfully negotiated with Deldo to become the exclusive UK distributor for the Sunny brand, which will be available in seventeen sizes up to 17 inch, with new sizes being added as the brand develops. Deldo, who have exclusive European rights on Sunny, took the decision to partner with Group Tyre based on their proven credibility as a national distributor. The addition of Sunny to Group Tyres’ existing exclusive brands, Stunner, Trayal & Eurotour, is another positive step forward in their continued expansion programme and further enhances their reputation as one of the UK’s leading independent distributors to the fast fit industry.
Pirelli Telecom Cables and Systems has appointed Wood Communications as a distributor of its DeskWave range of optical data cables in the Republic of Ireland. Produced primarily for LANs and other network applications, the standard range is available from one to 48 fibres available in a range of fibre types. Custom-made cables from Pirelli with higher fibre counts, alternative fibre types or with copper and fibre elements combined, are also available to future-proof cable installations. Wood Communications was established in 1924 and is one of Irelands leading distributors of network products.
Ashford-based PK Commercial Tyres is a well-established Bandag franchisee, supplying quality truck retreads for a number of years. Managing director Paul Kuske has experienced both good times and bad, changes in the market and changes in user attitudes and the company has weathered it all, adapting to these changes. Recent changes in the retread market prompted Paul to re-think where the future lay for his company. The main problem is the increasing demand by customers for management information and a total tyre management service, rather than just product. “We found that we were having to sell the tyre over again – once to the end user and then to the tyre distributor or service provider” said Paul. There were other dangers too – if you use outside companies to provide the services that you are unable to offer, there is always the chance that they might compete for your contracts. “We lost two fleet contracts to a former service provider partner” he remembers. It was time for a re-appraisal of the company’s objectives. PK Commercial took over a retail tyre depot in Aylesford, near Maidstone, offering fast-fit services and MOTs for car drivers. The location and the diversification into car tyre retailing proved successful.
Kirkby Tyres is a major wholesaler in the agricultural sector and is increasingly turning towards that market to develop its business. Kirkby Tyres has been around for a long time, almost 50 years in fact. In that time the business has seen many changes but through all the changes it remains in the hands of the Rosenthal family, with Gordon Rosenthal, grandson of the founder “Joe Rose” at the helm. The company started as a casings collector and dealer, before developing into wholesaling. When the wholesaling of new tyres outgrew the casing side, the company made the decision to concentrate on new tyre distribution. Gordon Rosenthal took over from his father, Leslie Rosenthal, as Managing Director in 1980. Gordon is now Chairman, with Dave Dorrity joining the company in 1999 as Managing Director. Kirkby Tyres operates with three depots to cover the British Isles. The head office is at Liverpool and there is a depot in Perth, Scotland which offers a very similar stock profile to that in Liverpool, though the demand for high performance and premium car tyres is stronger north of the border. Ireland is covered from Dublin by Kirkby Tyres (Ireland) Ltd and in addition to the full range offered in the UK is the Irish agent for Ohtsu/Falken, and is the sole distributor of Wolfrace and Smiths alloy wheels in Ireland. The Group has a turnover in excess of 16 million pounds and employs 61 staff. It is worth noting that the breakdown of the business puts the agricultural sector at 45 per cent of the Group’s turnover, truck at 35 per cent, and car and earthmover at five per cent each.
Motokov UK Ltd is the long-standing importer and distributor of Matador tyres from Slovakia, the UK subsidiary of a Czech company. Its tyre division is a high efficiency, low cost hands-on operation offering a dedicated service for the Matador brand. The King’s Lynn-based operation is perhaps one of the most straightforward tyre import businesses in the country. The tyre division at Motokov is handled by Paul Mills and Steve Eke. Paul has been with Motokov for seven years, Steve for 17. Their sole raison d’etre is to ensure the availability and supply of Matador tyres. The company which has been dealing in tyres for over 30 years, has been the importer of Matador tyres for the past ten years and has recently taken on the agency for Triangle crossply truck tyres and earthmover tyres from China.
Intertyre, Goodyear’s South African distribution operation has been taken over by African Genesis, a wholly black-owned investment company. African Genesis has taken 70 per cent of Intertyre leaving Goodyear with the remaining 30 per cent. Currently Goodyear has 40 per cent market share in South Africa and the change in management of Intertyre is planned to increase the company’s performance. Intertyre CEO Lawrence Mavundla, who is also the national president of the African Chamber of Hawkers and Informal Business, said yesterday that the deal presented an opportunity for small business to set up mini distribution enterprises in the tyre industry. He said the partnership would bring about a “robust growth” in Goodyear’s market share, mainly in the passenger vehicle market. ”There are some chamber members who trade in tyres. However, the tyres they sell mostly don’t meet the SA Bureau of Standards’ requirements,” he said. Mavundla said while some of these small enterprises import tyres illegally, the situation was worsened by some traders who used glue to retread tyres, making them unsafe. Intertyre hopes to address these problems by making tyres available at reasonable prices to Chamber members. It is also hoped that this will initiate strategic alliances with Goodyear subsidiaries and create a platform for generating other larger projects in South Africa and neighbouring countries.
From 1st December, Steve Tidmarsh will be the new Sales Director of Kumho UK. He has a wealth of experience in the UK tyre industry, having spent some 29 years with Goodyear UK in a series of senior positions, most recently that of Sales and Marketing Director, Consumer Tyres. He takes up his new post with the company in a planned move from Kumho UK’s exclusive Marshal brand distributor, Bond International, whom he joined earlier this year to gain experience of the wholesale market in the UK.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
