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‘Strategic Alliance’

While news about the Bridgestone Bandag deal dominated the headlines in the closing months of 2006, these businesses were not the only new tyre manufacturers and retreaders to be engaged in business negotiations. In the UK, during the opening months of 2007, Pirelli and Britain’s largest retread manufacturers sealed a deal that will see the Italian company’s UK and Ireland Novateck retread production and distribution outsourced to Grantham-based Vacu-Lug. Novateck tyres had previously been produced at Pirelli’s retreading facility in Burton-on-Trent.

The deal came about following an internal strategy review at Pirelli. After analysing the effectiveness of its retread business, on 11 January, Pirelli Tyres Ltd announced that the company had come to the decision that Vacu-Lug would be the best retread production partner. However, the agreement is about much more than just retread production. According to managing director, Tim Hercock, Vacu-Lug will also take on distribution responsibilities. All the products will be made with Pirelli materials, processes and moulds to Pirelli standards, Hercock added.

14th March 2007/by Tyrepress Editors

Retreaders Have to Adjust Service and Product Portfolio

The new tyre industry’s continued push into international and national fleet business and thus into the retreading business will very likely lead to an increased market polarisation between these companies and independent players participating in this market. The major material supplier, Gummiwerk Kraiburg Austria, has identified the prospects and risks attached to this development, according to Frank Gregory, new sales director within the company’s “Retreading materials” business unit. Talking to Tyres & Accessories, Mr Gregory announced an adjustment to Kraiburg Austria’s business model, but did not disclose specific details.

28th February 2007/by Tyrepress Editors

Pirelli Forges Links with Vacu-Lug

Pirelli UK Tyres Ltd is joining forces with Vacu-Lug, the UK’s largest independent retread manufacturer, in a strategic alliance that stands to strengthen the position of both companies.

12th January 2007/by Tyrepress Editors

Bandag Sold to Bridgestone for $1 billion

After several attempts they have now finally succeeded: Bandag Corporation heir, Martin Carver, has sold his and his mother’s majority stake in the company to Japanese tyre giant Bridgestone. It was probably high time for the American retreading specialist to make such a move, as in recent years they have been operating in a seemingly unfavourable environment. If Bridgestone had also chosen to go down the same path as Goodyear and Michelin, establishing its own equity retreading businesses, Bandag’s market environment could have been set to become even more unfavourable.

Subscribers can read the entire article and download it as a PDF by clicking the more link.

7th December 2006/by Tyrepress Editors

Bandag Sold to Bridgestone for $1 billion

After several attempts they have now finally succeeded: Bandag Corporation heir, Martin Carver, has sold his and his mother’s majority stake in the company to Japanese tyre giant Bridgestone. It was probably high time for the American retreading specialist to make such a move, as in recent years they have been operating in a seemingly unfavourable environment. If Bridgestone had also chosen to go down the same path as Goodyear and Michelin, establishing its own equity retreading businesses, Bandag’s market environment could have been set to become even more unfavourable.

Subscribers can read the entire article and download it as a PDF by clicking the more link.

7th December 2006/by Tyrepress Editors

Kwik-Fit Fleet Extends Arval Contract into Third Decade

A business partnership stretching over more than 20 years between two of the biggest names in the UK fleet industry – Kwik-Fit Fleet and Arval – has been further extended with the signing of a new two-year contract. The new contract, with an option to extend for a third year, gives Kwik-Fit Fleet AllStar preferred supplier status with Arval for tyre replacement and the provision of other fast-fit services across the leasing and maintenance management company’s 160,000-strong UK vehicle fleet. AllStar recognition is being awarded only to suppliers who meet strict criteria to deliver service quality and value to Arval customers.

29th June 2006/by Tyrepress Editors

Plenty of News But Just One Subject

This year’s tyre exhibition saw Bandag release quite a lot of news coming from the new product department. But what was most interesting for the international press as well as for customers, was Bandag’s future in the European fleet business after its biggest customer (GE/TIP) left. Although marketing director Danny van Essche confirmed that Bandag is going to remain active in the European fleet business, the company is said to have learned a lesson by GE/TIP’s retreat. This lesson will be used to adapt Bandag’s business strategy in a positive way: “We will not aggressively pursue international fleet business anymore.”

26th June 2006/by Tyrepress Editors

Goodyear Dunlop UK Appoint Franchise Development Manager

Goodyear Dunlop Tyres UK Limited has announced the appointment of Peter Tye as Franchise Development Manager. This new role has been created to spearhead the company’s recently-announced move towards developing franchise opportunities in the vehicle servicing and tyre fitment market. Goodyear Dunlop is investing in its Hi-Q retail chain, and will complement the core of company-owned stores with a relaunched network of franchises, offering the consistent high standards to consumer and fleet customers across the UK. This follows the company’s decision to separate the Hi-Q and Truck Force businesses into two distinct business units in a strategic move to offer focused, dedicated service to satisfy the different needs of both markets.

25th April 2006/by Tyrepress Editors

Hankook Lands OE Contract with International Truck

(Akron/Tire Review) Hankook Tire Co. announced it has entered into an agreement to supply OE tyres to International Truck and Engine Corp. As part of the agreement, Hankook will provide steer and drive position tyres for International’s CF Series trucks, 4000 Series tractors and IC bus equipment. The tyres to be supplied include: AH06 and AH11 all-position, DH01 drive, AH12 medium distance all-position, Z35A deep tread super traction, and DL01 long haul drive tyres.

Delivery of the tyres to International began in the third and fourth quarters of 2005, Hankook said, adding that it plans to increase its truck tyre production in Korea to meet the requirements of the OE agreement.

28th March 2006/by Tyrepress Editors

The Last Building BRIC

Much has been written about the emerging Indian, Chinese and Russian markets, but what about South America? This continent is full of potential, something that is demonstrated by the fact that all the major players are there (Pirelli, Goodyear and Bridgestone/Firestone being particularly strong) and are already positioning themselves for the next market explosion. However for all its potential, the continent can also be described as tumultuous – at the end of November 2005, for example, Bridgestone/Firestone had to quell a violent dispute at a plant in Venezuela.

28th February 2006/by Tyrepress Editors

A Quarter of a Century and Still Not Tyred

Leeds-based ContiNetwork member Tyre Maintenance Ltd is this year celebrating 25 years in business. The family-run company now has two depots in Leeds and Gateshead and 14 recovery vehicles, making it one of the largest and most comprehensive independent tyre providers in West Yorkshire and the North East. Run separately from their locally managed business, Tyre Maintenance also operates its own fleet contracts department, offering national fleet business various contractual options including fixed cost and PPK payment solutions.

20th February 2006/by Tyrepress Editors

Goodyear Dunlop Launches New Call Centre

As Goodyear Dunlop Tyres UK Ltd embarks on a fresh approach to its retail business, the company has employed 18 “top retail professionals” and founded a new call centre based at the heart of Goodyear Dunlop’s Birmingham operations.

With the recent announcement of new investment in Hi-Q, the company has pledged to invest in its training, marketing and systems whilst developing a new franchise programme in order to complement its company owned stores to create a strong nationwide brand.

13th February 2006/by Tyrepress Editors

Blackcircles Joins the Fleet Business

Blackcircles.com is to challenge the established fleet market with the launch of its own online fleet service. Recent appointment, Paul Collins, will be responsible for ensuring consistent delivery and on-going innovation by managing Black Circles Fleet.

According to the company, the new service will be available to vehicle fleets of all sizes. Furthermore, blackcircles.com/fleet is said to significantly simplify the purchase process by providing access through a web-based system. Businesses will have their own private area containing all their vehicle details and will be able to make transactions using a unique PIN number.

2nd February 2006/by Tyrepress Editors

ContiLifeCycle Concept

Continental Truck Tyres has introduced a ‘cradle to grave’ ContiLifeCycle tyre management concept, which it claims can reduce tyre operating costs by as much as 25 per cent.

The manufacturer’s aim is to encourage hauliers to think beyond the tyre management basics of purchase price, service life and reliability, and to consider the impact correct tyre maintenance can have on vehicle running costs.

15th November 2005/by Tyrepress Editors

Bandag ‘Adapts’ its Organisation

Bandag has confirmed the news that more than a dozen staff members, including director of sales Peter De Cabooter, have left its European organisation, as was first published at www.tyrepress.com. According to the international retreading system supplier 16 employees have left the company. These people were said to be mainly operating in South European and CIS countries although some Brussels based personnel were also affected.

“Some call this restructuring, we prefer to describe this as right sizing for our future business model and allocating resources where they should be,” Bandag said in its statement. “Most of the job losses were part of a longer process of fine-tuning our organisation for future developments.

27th October 2005/by Tyrepress Editors