The latest study by J.D. Power & Associates, measuring OE tyre satisfaction, puts Dunlop at the head of light truck OE tyres for the first time and Michelin tops for passenger vehicles, for the fourth year running. The study sought the views of more than 39,000 consumers in their first three years of vehicle ownership.
Australian company Pacific Dunlop has revealed restructuring plans, which involve splitting the group in two. The Ansell health care business (turnover $Aus 1.3 bn) will be floated as a separate company. The second company will include the distribution of consumer products (Pacific Brands) and automotive products (Pacific Automotive and South Pacific Tyres). Turnover of these units totalled $Aus 2.7 bn.
Beleaguered Pacific Dunlop is expected to announce job cuts in a restructuring of its joint venture tyre division. It is also expected that Pacific Dunlop will announce plans to withdraw from the tyre venture, leaving Goodyear the controlling influence in the business. This comes as the group is about to release its latest profit figures which are expected to show a collapse in the performance of the tyre joint venture, Southern Pacific Tyres. Pacific Dunlop CEO, Tony Daniels, has so far declined to comment, other than to say that the JV partners were committed to manufacturing in Victoria, Australia.
Goodyear has released details of its financial performance for the last quarter of 2000 and for the year as a whole. Sales for 2000 were a record $14.4 bn (1999: $13.4 bn), of which Dunlop contributed $2.3 bn. Goodyear estimates that currency factors reduced sales by $450 m. Net income was sharply down to $40.3 m (1999: $243.2 m). The number of tyres produced in 2000 rose by 22.8 million units to 223.3 m tyres, of which Dunlop shipped 37.3 m units. Samir Gibara, chairman and chief executive officer, described the results as “disappointing”, adding: “We have solid improvement plans in place for 2001.” Gibara went on to say that global rationalisation initiatives will reduce group employment worldwide by 7,200 and save $150 m this year, and $250 m annually thereafter.
In the US, The J.D. Power & Associates 2001 Replacement Tire and Retailer Customer Satisfaction Study has rated Michelin as the brand offering most customer satisfaction among both passenger vehicles and light truck owners. This is the tenth year of the study and Michelin has taken top spot for the last seven years (light trucks) and the past three years for passenger vehicles. Light trucks include pick-ups, SUVs and full-size vans, passenger vehicles, cars and compact vans. Customers mentioned reliability, durability , performance and handling above price.
Each year the motorcycle exhibition in Dortmund attracts many visitors, even though Munich has established a bigger show (every other year) for two-wheel fans in the meantime. More than 400 exhibitors took part in the 17th show from 28 February to 4 March and around 1,000 motorbikes could be seen in Dortmund. And on the tyre side? Only Dunlop presented a new tyre: the tyre manufacturer says that the D208 GP (front tyre 120/70 ZR 17, rear tyre 180/55 ZR 17) was developed based on experiences in motorsport. But apart from this, no more information was available. Dunlop couldn’t even tell NEUE REIFENZEITUNG a date for the official launch of the new product in Germany. And at all other tyre manufacturers‘ stands – Bridgestone, Cooper-Avon, Metzeler/Pirelli, Michelin – one could only see exactly the same product range as presented at Intermot last autumn – very disappointing so far. The only excitement for this year’s motorbike season will arise from the question if Bridgestone will be able to pass Metzeler and can climb to number one of the German market for motorbike tyres.
As part of its major restructuring, Pacific Dunlop is to close two Victoria-based tyre plants in Australia. The move is aimed at ensuring the future of South Pacific Tyres and will result in 890 job losses – 820 at the factories and 70 in management and back-office positions. Olympic Tyres Ltd has confirmed that it has secured continuous supply of Olympic Tyres, supplied by South Pacific Tyres. Olympic distribute SPT’s agricultural, off road and construction tyres throughout the UK and much of Europe.
In the UK, Dunlop and Goodyear have decided to combine their administration offices to increase the effectiveness of the joint venture. The offices – and a new distribution centre – will be in Birmingham, preferably at Fort Dunlop. The Wolverhampton offices will eventually be closed, but production at Wolverhampton will not be affected. The two sales divisions will function independently, even though they will operate from the same location. The move will be completed over the next 12 months.
The new Mini will be equipped with Warnair as a standard feature. Dunlop’s tyre pressure warning system notifies the driver if a tyre loses more than 30 per cent of its air. Approval of the system for the Mini represents the first time that Dunlop’s Warnair has been included as standard equipment for a model in the small car sector. Since the introduction of Warnair in August 1997, 500,000 such tyre pressure monitoring systems have been installed worldwide. In addition, Dunlop is offering 26 additional sizes of the SP Winter Sport M3 which was developed for all categories. The tyre is now available in diameters from 13-19 inches.
ASS Reifen- und Autoservice, which has depots in Hamburg, Hanover and Berlin, has been declared insolvent. It is said that the Dunlop group (Dunlop, Pneumant and the equity Holert Konz) is the biggest creditor.
Pacific Dunlop has announced it is to withdraw proposals to split its business into two independent publicly listed companies. The company told the Australian Stock Exchange it has decided to explore options to divest elements of the business and has appointed Deutsche Bank AG to assist. A profit warning for the second half to June 2001 was released, expecting profit to be up to 30 per cent lower than first half results.
Manfred Wennemer, management board chairman of Continental AG, is reported to have said that the company expects to sell its UK equity chain National Tyre Service by the end of this year. Earlier this year, Continental UK closed National’s truck tyre operations when it formed ContiNetwork; a partnership with independent truck tyre service providers. This left 210 retail outlets in the National chain. A spokesman in Hanover confirmed Mr. Wennemer’s comment, but would not reveal any further details. The news was only revealed because Continental had to enter a figure into the fourth quarter accounts which was picked up by analysts.
Following Pirelli and Dunlop, also Toyo presents two 22 inch tyres: Proxes S/T is available in 305/45 and 325/40 with speed index V. As well as these extreme sizes Toyo has developed an even bigger size: 305/40 R 23 115V for typical pick-ups and sport utility vehicles (SUVs).
The world’s most important exhibition for equipment in the building, construction, mining and quarrying industries is “Bauma”, which was held in the beginning of April in Munich. On 2000 stands many vehicles from this segment were exhibited – equipped with very specialised tyres. Not all the tyre manufacturers are involved in this segment, for which the abbreviation EM is common, standing for earthmover tyres. The most important producers of EM tyres are Bridgestone, Michelin, Goodyear and Dunlop who showed sections of their current programs on their own stands. Some other tyre brands were fitted on the machines featured on the stands of vehicle manufacturers, but the four above-mentioned brands dominate the market. One trend in earthmover tyres is radialisation, but cross ply tyres are still in use. Low profile tyres and low-pressure technology are the most modern developments. The specialised tyre manufacturers want to be able to equip virtually every construction and mining machine, from skid-steer and compact loaders to the biggest trucks, to provide the customers with economic solutions and optimum efficiency.
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African tyre maker Dunlop has seen a turnaround in its fortunes, turning a loss of $18.3 million (20.23 million Euro) into a profit of $25 million (27.64 million Euro) in the first half of the year. Sales have increased by 52 percent from $577 million (637.85 million Euro) to $879.6 million (972.31 million Euro). Developments at Bulawayo and Harare, new radial tyre ranges and the development of the Common Market for Southern Africa indicate that the improvements should continue for the foreseeable future. Kenyan tyre chain Kingsway Tyres has signed a deal with Dunlop to the exclusive distribution rights to Dunlop tyres and tubes. Dunlop hopes the move will bring its products closer to the Kenyan market.
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