Fleet Business
Fleets have been warned that they should still be taking proactive measures to manage fuel use – even though petrol and diesel prices have started to fall from recent peaks. Crude oil prices are now more than a third lower than the July peak of $147 a barrel. Pump prices are some way behind this kind of drop but petrol is already nearer an average of 110 pence per litre rather than the 120 pence of recent months.
While there are a few retail chains such as Dekkman and Vianor operating in Nordic markets, the majority of tyre sales are down to a considerable number of independent operators with one or two depots. For most of these as much as 60 per cent of annual tyre sales are compressed into the four month period leading up to the onset of winter. This figure is higher in the North, where the winter season is both longer and harder. High transport costs, extreme seasonal business and little chance of same day deliveries means that high stock levels are usually required at each retail outlet. Despite these difficulties the independents are generally faring better than the equity chains.
Increasingly, independent tyre retailers in Nordic countries are joining what is now recognised as the leading buying group in the region and one of the most progressive international tyre buying groups; Dekk Partner, founded in 1994.
The leading e-Commerce tyre retailer in Europe, Delticom, has announced that it is to merge its current car fleet business with the company’s buff new online portal. The change means that trader fleet owners can now purchase tyres through user-customised settings at the e-tailer’s online presence, www.flotten24.de.
The site will allow any user wishing to buy tyres from Flotten24.de to register free; following which visitors will be able to access the site’s comprehensive web-based catalogue of tyres and accessories. In this way, car tyres, lorry tyres, light truck tyres, motorbike tyres and high-quality motor oils will be offered in the fleet shop, while a personal sales contact will give advice to fleet customers and negotiate individual fleet solutions. In addition to these services, Delticom states that a network of professional service partners – which currently numbers over 5,700 in Germany alone – is available to fit online purchases. The average delivery time, the company adds, is between 48 and 72 working hours.
Hull-based haulage company Sharron Pattison Logistics is fitting Michelin’s XDN2 Grip tyres across its fleet of Daf heavy trucks, following a successful trial. Sharron Pattison currently has four vehicles shod with Michelin tyres, including two with the latest XDN2 Grip tyres, but plans are underway for the 14-strong fleet to make a complete transfer to Michelin, as tyre wear dictates. The Michelin XDN2 Grip tyres were purchased from local independent dealer Baron Tyres, which will be carrying out regular monthly tyre inspections across the fleet, with each vehicle averaging 150,000 km a year and operating on a 24/7 basis.
Fleet Specialties Co. has launched three new Tire Sentry tyre pressure monitoring systems (TPMS) for trucks that use super-single tyres. The TMA-SS series of TPMS are designed to warn drivers of developing pressure related problems before the problem shows up in a tyre blowout; and also help drivers get optimum fuel economy.
With access to a 1,200 strong network comprising National Tyre and Autocare branches and carefully selected and approved independent tyre experts, plus a 200 strong fleet of mobile units and in-house 24 hour call centre, National Fleet is promoting itselfe as the leading provide of “bespoke, high quality, customer-driven services to the fleet market.”
The latest development in National’s fleet service is the addition of a new online booking facility, which enables them to log on and book in tyre repairs for a same-day service using the branch network or next-day service using the mobile facility. Drivers need only complete two easy steps; by entering the vehicle and driver details followed by details of the work required, then a confirmation email of the work requested is emailed direct. By pre-booking online, National Fleet guarantee to have the correct tyre size and brand in stock ready for the work required.
Yuill & Dodds, the Hamilton Scotland based haulage company, won this year’s Retread Manufacturers Association (RMA) Green Fleet Award. The award was presented to Brian Yuill of Yuill & Dodds by RMA director David Wilson at the Rubber Industry Dinner held at the St Johns Hotel in Solihull on 26 September. The Green Fleet of the Year Award is presented by the RMA to recognise fleets who have been particularly supportive to the retreading industry.
Yuill and Dodds are one of the biggest bulk hauliers in Scotland with over 200 tippers, tractors and trailers. They have been associated with Bandag for many years and fit retreads on drive axles on all tippers, bulk tractors and all positions on tipping trailers.
In order to strengthen its U.S. and Canadian service business, Goodyear Tire & Rubber Co. launched fleetHQ(SM) in February to fortify its dealer network with improved services and coverage. “It’s been a validated success,” said Charlie Walters, general manager of fleetHQ Solution Center. “We have more than 11,000 fleets and owner operators enrolled in the program, which provides roadside assistance, national tyre pricing, and centralized billing through local dealers.”
A core component of the program is the reduction of downtime through an emergency roadside service program – more than 1,500 dealers are ready with service 24/7, according to Goodyear. “With that type of coverage,” Walters added, “we can get our customers back up and running quickly. And we can help save them money in the process. There are no fees of any kind for calling our toll free number 1-877-4-Tires-Now.”
Hot on the heels of the announcement of Goodyear’s supply deal with NYC transit (see “Goodyear Renews Supply Agreement…”), midday trading saw shares rise a not-to-be-sniffed-at 55 cents (4.6 per cent), hauling the PPS up to $12.57 in midday trading.
Alcoa Wheel and Transportation Products has announced it has entered into a partnership agreement the Greater Dayton Regional Transit Authority, one of the oldest bus fleets in the US. The Greater Dayton Regional Transit Authority, with over 11 million passenger trips a year, is Ohio’s fourth largest public transit system. Its fleet includes diesel buses, electric trolley buses, ‘Project Mobility’ vans and buses and vintage ‘Wright Flyer’ trams.
In recent years the online tyre market has swollen in size (as observed in other retailer sectors). Whilst the proportion of the total market controlled by this sector remains limited, the fact that the number of different e-tail platforms is continually proliferating means online sales could already account for as much as 3 per cent of the European replacement market. With this in mind, knowing more about how these businesses operate is of interest to everyone in the tyre trade.
The latest insight is that the average tyre offered for sale online costs consumers around £69.14, meaning the myth that ‘virtual’ margins are too thin to make business sense could be evaporating. However, the most commonly offered tyre online is characterised as a mid-range brand costing around £60. It seems making money online is all a question of business model.
Over the weekend two of Germany’s largest independent dealer cooperatives, point S and Team, negotiated the terms of a joint venture that will see the two companies cooperate in the local fleet business. A letter of intent relating to what one might call the “team S” joint venture was signed this morning (Monday 29 September 2008) and will take effect 1 January 2009. The 50:50 joint venture will cover the area of fleet, large-scale sales and key account business. The negotiations were led by Juergen Pischinger and Peter Lüdorf and sought to synergise the benefits of Team’s strength in the commercial vehicle tyre business and point-S’s in passenger car tyres.
Between them the two cooperatives run over 1,100 service stations across Germany and thus have broad market coverage. Details of the name and headquarters of the new joint venture and personnel consequences are not yet clear, however layoffs are not planned. Instead the company hopes to operate a European-wide service in the future.
Global vehicle fleets have seen their fuel bills rise by as much as a third in the last year according to research by international leasing company Masterlease, which manages around 210,000 vehicles across Europe. With vehicle manufacturers’ continuous improvements in fuel efficiency now being swamped by escalating fuel prices, global businesses have to face the reality of increasing costs to their fleet management.
While average diesel prices have soared by a third in the last year, the story is not quite as grim for unleaded petrol – although globally it has still increased on average by 18 per cent since 2007.
Goodyear Dunlop’s decision to pursue a franchising programme for a number of HiQ servicing outlets met with so much interest from bidders that the company opted to extend the scheme to all its HiQ sites, split into 15 regional zones. Following this decision, Neil Burrows – the company’s retail director – left the company, while former HiQ retail director, Chris Kisby, successfully bid for the South Midlands, East Midlands and West Midlands zones. The company also announced that St Austell tyre trade expert, Justin Roberton would become the franchise-owner of three fast fit centres in Cornwall.
Mark Brickhill, the group managing director of Goodyear Dunlop, has released a statement commenting on the “high level of interest from ambitious businesses wanting to join us in investing in the future growth of HiQ” following the announcement of the company’s plan to sign long-term franchise agreements. The move towards longer franchises comes as a manoeuvre that will prevent a proposed management buyout from taking place, while also extending the scheme that has seen great success in Northern Ireland and Scotland.
Brickhill continued, stating that since the announcement of the extension of the franchising system to all parent-owned HiQ sites in England and Wales, many businesses had applied to join the scheme: “On the closing date (May 16th) we had more bidders than the total number of franchise regions. This puts us in a strong position to make choices that ensure we have committed franchisees on board who share our vision in strengthening the network.”
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