In the USA, Goodyear has announced that three new dedicated Dunlop tyre lines will be available from Goodyear and Gemini outlets. These are the Dunlop Citation, the Citation HP (both for passenger cars) and Dunlop Pioneer for 4×4 vehicles.
Automechanika – the International Trade Fair for Car Workshop and Service Station Equipment, Automobile Spare Parts Accessories – has set a new exhibitor record: 3,909 exhibitors occupied all of the approx. 300,000 square metres of indoor and outdoor exhibition space to present their latest products and technical innovations. The almost three percent increase in exhibitor numbers was the result of growth in the number of German exhibitors. 67 percent of all exhibitors came from outside Germany. The top five exhibitor nations were Germany and Italy, followed by Taiwan, the USA and Great Britain. The exhibition ran from 6 to 10 September 2000 and Messe Frankfurt welcomed around 150,000 trade visitors from all over the world during the five days of the fair, where exhibitors took many orders and transacted a lot of business. In contrast to this positive attitude at the trade fair, the background situation of the market does not look that good: The car boom of previous years came to a sudden end this year. The EU-Commission in Brussels is thinking about ending the exclusive distributor networks of car retailers. Parallel to this the car manufacturers – especially Ford and Mercedes-Benz – are restructuring their distributor networks, which means that they are reducing the number of their retailers. The pressure on the suppliers exerted by the car producers continues to increase and as a result they are showing a stronger interest in the aftermarket business. Furthermore Goodyear/Dunlop’s daughter company Pneumant was the fist tyre producer for several years to have a booth at the Automechanika. However, it is doubtful that this is the first example of a growing trend, as the “Reifen” exhibition, central event of the European tyre world, was held just a few months ago and it is to be considered that – in contrast to the alloy wheel business – the target audience of the tyre manufacturers is most probably not those who attend the Automechanika. In NEUE REIFENZEITUNG 10/2000 we review the show.
DTM (Deutsche Tourenwagen-Masters), the popular German racing series, will be revitalised this year. Dunlop is supplying all participating teams (Audi, Opel and Mercedes have confirmed their participation) with tyres. AMG-Mercedes’ teams, eight expected, will have wheels fitted by ATS.
The Viborg-Group, which bought first Stinnes Reifendienst and later Gummi Meyer and now has more than 400 depots in Germany, is facing more departures by Managers. The relatively young managers Scharwenka, Rudolph, Roth and Lemle do not see their future within the group any longer and are leaving. As far as business in general for the Viborg-group in Germany is concerned we hear very different opinions. Viborg is asking for the deepest price and in addition to that for an overhead of 10 %, giving them a real advantage over all competitors. Strategic partners at the moment are Michelin, Pirelli and Dunlop. It is not clear whether all of them are paying the extra price of 10 %. Other tyre manufacturers can see how difficult it is for the Viborg Group to fulfil their promises despite the fact that all the warehouses are completely full. There will be a long article in a future issue of NEUE REIFENZEITUNG. Furthermore, Viborg’s management is not willing to talk to the press and is urging employees not to talk to the press otherwise their jobs will be in jeopardy.
Following an increase in turnover from US$ 3 billion to US$ 3.5 billion, which incorporates US$ 577 from acquired Dunlop activities, Goodyear has reported a net income of US$ 63.6 million for the first quarter of 2000. The company sold 54.8 million tyres during this period, which is 9.1million more than in the corresponding quarter last year. 8.9 million of this total were manufactured by Dunlop. And as result of this quite impressive report anticipated by the market Goodyear shares have recovered recently.
Munich’s “Intermot” has become the main fair for motorbikes, the supplying industry and for dealers involved in motorbike tyres. Although the German market for motorcycles declined by 7 % (Europe: + 7 %) in the first half of this year, once again, “more than 150,000” visitors from 84 countries (1998: 150,368 from 80 countries) came to visit the New Munich Trade Fair Centre from 13 to 17 September to find out about the products and services of 1,033 exhibitors and 56 additionally represented companies from 35 countries (1998: 836 exhibitors from 33 countries). As in the premiere event in 1998, the proportion of trade visitors was approximately 35 %, with more than a fifth of their number coming from abroad. The largest contingents of trade visitors from abroad came from within the European Union (67 %) and the rest of Europe. Visitors’ interest encompassed all areas of the fair, with the top favourites being motorised vehicles (72 %), parts and accessories for motorised two-wheelers (47 %) and clothing and rider equipment. Therefore many companies from the tyre business were among the exhibitors in Munich: Cooper-Avon, Continental, Dunlop, Metzeler/Pirelli and Michelin showed their latest products and the tyre trade was present too. And there were a lot of new tyres to discover. For example a winter tyre for scooters, or Continental’s move into the radial segment, seven new tyres from Michelin and many more premieres for the upcoming motorbike season 2001. NEUE REIFENZEITUNG reviews all the news from the show in its October issue.
The Australian Conglomerate, Pacific Dunlop Ltd., cannot reach its income figure from 1998 of A$ 188m. In the first half of 1999 the company reached a net income of A$74.5m compared with A$ 101.7 million for the first six half of 1998.
At the Essen Motor-Show, tyre manufacturer Dunlop is showing a new high performance tyre, called “SP Super Sport 9000”. It is a mixture of the SP 9000 and the racing tyre which is supplied exclusively to the German Tourcar Masters. The new tyre will be available in 17 and 18 inch sizes and it will be released in spring 2001.
After a bad year in 1999, Goodyear has announced that the company is now “on track” with its turnaround strategy.
Robert J. Keegan (53), one time top manager with Kodak, assumed the position as Goodyears‘s president and chief operating officer in Akron on 1st of October, making him the deputy and named successor of chairman Sam Gibara (61). According to group publications, Keegan will be responsible for day to day business, whereas Gibara will be more concerned with strategy.
Goodyear’s net income for the fourth quarter of last year amounted to US$ 47.8 million compared with US$ 121.5 million in the fourth quarter of 1998. The company’s net income for the whole of 1999 was US$ 241.1 million compared to US$ 682.3 million in 1998.
At the beginning of November, Hans-Burkhard Brandt became Sales Director for the Truck Tyre Department at Dunlop. His predecessor, Frank Pickshaus, becomes Assistant General Manager of the distribution section of the OE-department. At the beginning of 2001, the present Dunlop Sales Director Hans Jürgen Wagner will become General Manager in Hanau. Christian Stein, now Sales Director Commerce, will be promoted to Sales Director.
Earlier in the year we reported that truck tyre production was to stop at the Fort Dunlop factory in Birmingham, UK. There was another devastating blow for the ageing plant when it was announced that car and van tyre production will be phased out by the end of the year. This will lead to 600 job losses, on top of the 650 redundancies earlier in the year. When all the losses have been implemented, the workforce at Fort Dunlop will have fallen from 1,700 to 500 inside twelve months. The latest move is as a result of Goodyear’s review of operations, following the joint venture with Sumitomo and has been blamed on over-production, the strength of Sterling and a reduction in domestic car production. Dunlop brand car and van tyres will continue to be manufactured at the company’s more modern factory in Washington in the North East of England as well as other European factories in the Goodyear group. Production at Washington will increase from six days a week to seven. Around 12,600 car tyres are manufactured daily at the plant. With truck, car and van tyre production gone from the Fort, that only leaves motorsports tyres, of which a mere 250,000 are made a year. The article in TYRES & ACCESSORIES 6/2000 outlines local reaction to the news and ends with the possibility of further bad news, as Goodyear is reported as saying that “substantial” further restructuring is still needed.
Popular German car magazine auto motor und sport tested ten M+S tyre brands size 195/65 R 15 on a BMW 323i. The test winners were Goodyear’s Ultra Grip 6 (“best tyre”) and Uniroyal’s MS Plus 55. These were followed by Dunlop’s SP Winter Sport M3, Continental’s WinterContact TS 790, Pirelli’s Winter 210 Snow Sport, Michelin’s Pilot Alpin, and Nokian’s Hakkapeliitta NRW. Those tyres which achieved only limited recommendation were Toyo’s Snowprox S 940 and Firestone’s FW 930, while last place in the test went to Yokohama’s Winter F 310 Plus.
A lengthy report of a speech by Goodyear boss Sam Gibara, in which he tells of the group’s return to the position of number one tyre manufacturer. The speech encompasses a range of subjects affecting Goodyear – the importance of the Goodyear family and the Goodyear culture, above all the importance of people. The example of Nokian Tyres is held up as, size for size, it is probably the most profitable tyre manufacturer in the world. What Nokian can do, Goodyear subsidiaries can surely do? It is important to get the right mix of products and to shorten the time to market, it is important too to be able to supply customers with what they want, when they want it, and Mr. Gibara acknowledges that, in the past, fill rates have not been all they might be. A decisive factor in Goodyear’s success will be the effectiveness of its multi-brand strategy. Other tyre manufacturers have successfully developed such strategies and Goodyear, with its own name and that of Dunlop, has two very powerful brands in its armoury. Customers differ in their driving habits and incomes and thus they need different tyres to fulfil these various needs. Goodyear has the brands to satisfy all these customers. Finally, Mr. Gibara reiterated Goodyear’s goal to be not only be the number one tyre manufacturer in the world, but the most profitable one. And then he closed the meeting. Except that he didn’t; there was no meeting and there was no speech from Mr. Gibara. The article which can be downloaded in full length as PDF file (size: 2.84 Mbyte, Adobe Acrobat Reader required) is, in fact, an imaginative piece written by Klaus Haddenbrock, outlining what Mr. Gibara could have said on such an occasion. And Mr. Gibara’s reaction? See his letter in reply in TYRES & ACCESSORIES’s April issue.
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