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Button to Appear In Birmingham via Satellite

Jenson Button and the BAR-Honda Formula 1 team will show will launch the team’s new vehicle, the BAR-Honda 007, by satellite link. The new car will be unveiled at the Barcelona circuit in Spain at 11am (UK time) on Sunday 16 January and for the first time, visitors to Autosport International will be able to watch all the action as it takes place.

Jenson is just one of three current Formula One drivers who are participating in Autosport International, Europe’s largest motorsport show. Red Bull Racing’s David Coulthard will be coming along to meet his fans on Saturday 15 January and Williams-BMW’s Mark Webber will be there to sign autographs on Sunday 16 January. Other British racing stars attending the show include Eddie Irvine, Allan McNish, Jason Plato and Andy Priaulx.

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Michelin Charming Europe

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Michelin has extended its ‘charming places to stay’ guide range with the introduction of German and Italian editions, and the launch of the 2005 edition to France.

This year’s range features a similar layout to previous editions where each section of the guide is colour-coded by geographical region, and each entry includes a photograph and short description, plus practical information.

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Bandag Continuum with OTR

Bandag is set to introduce a new line of off-the-road precure retreads to the American tyre market.

The new range, Continuum, is designed for light and medium earthmover tyres and includes two serpentine tread designs, which, in Bandag’s words have been created to offer “greater flexibility than other retread application methods and products.”

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Wholesaling and Retailing In a Difficult Market

Magowan Tyres is a family-owned and run retail and wholesale tyre business, based in Belfast. The founder, Darryl Magowan, has been in the tyre industry for more than three decades and is still in charge of the overall direction of the company.
His son, also called Darryl, is managing director of the company and his speciality is purchasing. With the Northern Ireland market being, in his phrase, “exceptionally price conscious”, it is a distinct advantage if you can buy cleverly. Magowan is very active on the parallel market, importing around eight containers a month from Europe and the USA.

For almost 20 years, Magowan Tyres was purely a retail business, moving into wholesaling only three years ago. I put it to Darryl Magowan (Jr.) that this was an odd time to enter the wholesale sector, with rising transportation and associated costs. His response was that the company had examined the situation carefully and weighed up the pros and cons. The main reason was that there was a growing demand in the Irish market for ultra high performance tyres and a lack of wholesale supply.

The main market for Magowan Tyres is Northern Ireland, especially Belfast, where the company offers deliveries up to five or six times a day, if required. The service in the Irish Republic is less frequent, but a next-day delivery is standard. Because of the low density of population, which, apart from the major towns and cities, is very spread out, running a wholesale operation efficiently and profitably means keeping a close eye on day to day running.

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Fulda Showcase at Autosport International

The new “Exelero” will be launched on the Fulda stand at Autosport International 2005 at the NEC in Birmingham. According to the tyre manufacturer which is also title sponsor of the live action of the show scheduled for 13-16 January 2005 this new ultra-high-performance tyre features shorter breaking distances on wet roads, safe handling and low noise. The tyre has also been tested and certified by TÜV, Germany’s independent test institute. As well as the Exelero launch, there will be additional activity on the stand including the Fulda 4X4 range and Fulda’s passenger car tyre showcase. There will also be on display the Fulda Challenge RAV4. On 29 January our UK representatives, Richard Jackson and Emmie Gribble, will fly to the Yukon Territory in Canada to compete in the Fulda Challenge – the ultimate endurance event. Both will be on the Fulda stand on Thursday 13 January.

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UK Car Production Rises in November

According to provisional output data released by the Office for National Statistics the total UK car production rose 4.5 per cent in November and has reached its highest November output since 2000. “This performance demonstrates the resilience of UK car production since the period of restructuring at the turn of the decade. Our nine volume manufacturers are now on track to produce 1.65 million cars in 2004 and similar volumes in 2005,” commented SMMT chief executive Christopher Macgowan these figures published just before Christmas. “Growth 2004 has largely focused on production for export, demonstrating the value and strength of UK manufacturing in a competitive global market. Seven out of every 10 cars made in the UK are destined for export and we expect this trend to continue in 2005,” he added. The output volume of commercial vehicles was up six per cent in November 2004 with an export growth up 25 per cent for the month, and 27.3 per cent over year-to-November respectively. “The recovery in CV demand throughout Europe has had a positive effect on UK production facilities. They have clearly been up to the challenge, delivering state-of-the-art vehicles throughout the EU. CVs produced for home markets remain broadly stable compared to 2003, reflecting the use of the UK as a positive outlet for new home produced vans and trucks. We still expect to meet the 2004 forecast for 210,000 units manufactured in the UK,” said Christopher Macgowan.

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Phoenix AG Sells Vibracoustic Holding to Freudenberg

Continental AG (Hanover) is fulfilling its commitment to the EU Commission to turn over to competitors parts of Phoenix AG, which it has taken over. Freudenberg & Co. (Weinheim/Germany) is taking over the Phoenix AG’s holding in Vibracoustic, previously a joint venture, thus becoming the sole owner. Freudenberg is also purchasing Phoenix AG’s commercial vehicle air spring OEM/OES business.

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Toyo Establishes a New Sales Subsidiary in Europe

Toyo Tire & Rubber Co., Ltd. (President and CEO Yoshio Kataoka) will establish a sales subsidiary in Neuss, Germany on January 1, 2005. The new company, known as Toyo Tire Europe GmbH, is a joint venture with Mitsubishi Corporation, set up to serve the entire European market.

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Industry Speakers Gather for Tire Technology Expo

More than 110 exhibitors have confirmed their participation in the 2005 Tire Technology Expo. The exhibition, running from 22 – 24 February in Cologne, will feature session from leading industry experts. According to show organisers UKIP, the show is largest event of its kind in Europe and will bring together over 100 experts from internationally recognised research institutes and centres of excellence to present on a range of “hot topics.”

Subject matter will include materials, the intelligent tyre, modelling and simulation techniques and the latest developments in polymer technology. Speakers include Frank Feher of Goodyear Chemicals, Bridgestone’s Shoji Oida and John Bullas from the University of Southampton.

“This years show is the biggest in the event’s history, with more high quality exhibitors and visitors registered than ever before,” says Tony Robinson CEO of UKIP Media & Events. “Professional visitors from around the world will be able to see the newest technologies on display and exchange the latest information and opinions on the significant changes within tire technology at the intensive three-day conference. We’re looking forward to a really stimulating and fantastic show.”

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Goodyear Dunlop Secures Additional Funding

Goodyear Tire & Rubber Co has said its Belgium-based joint venture with Japan’s Sumitomo Rubber Industries has arranged financing worth up to $365.5 million (£189.52 million), the associated press is reporting.

The transaction, which will be completed in euros, will provide $219.25 million to Goodyear Dunlop Tires Europe BV, Europe’s second-largest tyre maker. That amount, which will be secured through accounts receivables, could expand before the facility’s term ends in five years. Goodyear said the transaction is expected to be completed by the end of the year, and will replace an existing $109.6 million facility. The deal is subject to customary annual renewal of back-up liquidity lines, Goodyear said.

Shares of Goodyear rose 84 cents, or 6.43 per cent, to close at $13.91 in trading on the New York Stock Exchange. The stock increased another 5 cents to $13.96 in after-hours trade.

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Michelin Announces Further Price Increases

Michelin SCA in France admitted yesterday that it wants to make Europe-wide prices increases of five per cent. Michelin justified the repeated round of price increases by the rise of raw material prices, which have added up to 40 per cent in the last five years.

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New Kayaba Shock Absorber Plant in Czech Republic

Kayaba Industry (Japan), which, according to the company, is the biggest shock absorber manufacturer in the world, has developed its market position by building a new plant in the Czech Republic. Production is due to start in April 2006. “Kayaba Manufacturing Czech“ (KMCZ), to be based in Pardubice, will employ more than 200 employees at full capacity. According to the company’s production plans, by 2007 more than two million shock absorbers will be manufactured there each year.

In December 2003, Kayaba bought the remaining shares of Spanish shock absorber manufacturer, APA. With an annual production of more than 15 million shock absorbers, the next step is further strategic expansion in Europe. The production plant in the Czech Republic, which will be based on the most modern technological criteria, will have its own capital funds, totalling 17.5 million euros. By making this further investment Kayaba says it is developing its operational basis in Europe more clearly than it has done so far.

The recently submitted annual report 2003/2004 of Kayaba shows that the company is on course for growth. Turnover totalled $2.1 billion, which represented an increase of over 10 per cent compared with the same period last year. With an annual production total of more than 55 million units, in both in the passenger cars (for large reputable car manufacturers) and for the aftermarket business, the company reportedly holds a 23 per cent world market share.

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Bridgestone Appoints New Vice President

Bridgestone Europe (BSEU) has promoted Gunter Unterhauser to the position of vice president, sales and marketing. In his new position Mr Unterhauser will be responsible for pan-European aftermarket sales, while maintaining responsibility for the German market. Minekazu Fujimura, BSEU chairman, CEO and president, will continue to be responsible for the company’s OE business. Mr Unterhauser was previously managing director of Bridgeston Firestone Germany.

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Can Russia Close the Gap Between Itself and Europe?

If we take a look at the current state of Russia’s tyre market, two main features can be identified. Firstly, there is the low-key presence of Western tyre manufacturers when it comes to owning production facilities in the country. With the exceptions of the Michelin owned factory near Moscow, and the plant that Nokian has started building, it appears as if other companies are only just starting to recognise Russia as an interesting market. This supplement to TYRES & ACCESSORIES and NEUE REIFENZEITUNG provides a look at the particular characteristics of the Russian market, introducing the important players and providing an outlook on the future development of this part of the world. Will Russia be able to close the gap between Europe and itself?

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SEMA and VDAT Make Agreement

Specialty equipment associations SEMA and Verband Deutscher Automobiltuner (VDAT) have signed a memorandum of understanding to promote increased cooperation between their associations and member companies.

“Working more closely together with our friends at VDAT will greatly enhance the ability of the specialty equipment industry to grow on both continents,” said Christopher J. Kersting, SEMA president and CEO. “It is essential that we join forces with our friends in Europe to be proactive regarding legislative and regulatory proposals which hamper the ability of consumers to personalize their vehicles.”

As a result of the agreement, SEMA and VDAT will become members of each other’s associations and exchange market and other information of mutual interest to members. In addition the associations say they will work together on legislative and regulatory developments affecting the industry in both markets and meet regularly to promote closer relations between organisations.

“I am very much looking forward to our cooperation with SEMA,” said Hans-Joerg Koeninger, VDAT general manager. “We will work together with this powerful trade organization for uniform and clear regulations for the approval of tuning products.”

Demonstrating their solidarity SEMA exhibited as part of the VDAT booth at the Essen Motor Show. VDAT will have a booth at the annual SEMA Show.

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