Goodyear Buy Swedish Retail Chain
Goodyear Dunlop Tires Europe has completed its acquisition of the Dackia tyre retail group, in Sweden.
Goodyear Dunlop Tires Europe has completed its acquisition of the Dackia tyre retail group, in Sweden.
Goodyear Dunlop Tyres UK Limited has announced that it is taking further steps to combat illegal importers and to protect customers; by ensuring the right tyres are fitted to vehicles in the UK and Europe.
A member of Goodyear Dunlop Germany’s executive board confirmed to Tyres & Accessories that Holert-Konz’s restructuring plans are underway. The move will see the company move its outlets into a franchise system under the Premio banner. Consequently around 15 of Holert-Konz’s 96 outlets have already been shut down. So far interested parties are negotiating for around 30 franchises. The remaining 50 outlets are still owned by Goodyear Dunlop, but the company also plans to franchise these.
Goodyear Tire & Rubber Company has completed its previously announced acquisition of the remainder of Sava Tires, a tyre manufacturing company in Kranj, Slovenia.
Since 1st of January 2004 the business field Deflation Warning System DWS (Warnair) belongs to Dunlop-Tech GmbH, a 100% daughter company from SRI. So DWS is not part of the joint venture Goodyear Dunlop.
The UK fast fit sector has long had an enigmatic player in the shape of Hi-Q. Even without the coming together of Motorway and Hi-Q the brand was substantial and widespread across the UK thanks to a blend of equity and partnership units. However, unlike its rivals, Hi-Q suffered from a raft of management, branding and performance problems. Even the relatively small Central Tyre operation could offer a standardised branding and a certain level of uniformity of image and service across its domain. Hi-Q was, by comparison, a sleeping giant. It was an operation that needed organisation, it needed a good shakedown and sort out. It needed someone capable and prepared to turn it on its head, shake out all the loose change from its pockets and put it back on its feet.
That was a view taken, not only by spectators but by people higher up the feeding chain in the parent Goodyear organisation. As Goodyear and Dunlop were brought together, so too were all the group operations and this led to, in Hi-Q/Motorway, a complicated and divisive structure where there were dual brands, in both truck and car, there were multiple sales teams and, to quote Graham Scholefield, the man brought in to head up the revitalised Hi-Q, “The main task was to create cohesion in the business, give everyone a sense of direction; and improve communication and motivation.”
Graham Scholefield has a considerable length of experience in corporate retailing, initially with House of Fraser and then with Kwik-Fit, holding powerful positions in both organisations. When CVC bought Kwik-Fit Scholefield was looking at finding another outlet for his retailing skills. When the option of taking on Hi-Q came up, he realised that the task offered him a real challenge, not only that but turning Hi-Q from the sleeping giant it was into the powerful retail operation it should be, would be realising untold potential. “I could see the potential of Hi-Q,” says Scholefield, “here was a massive asset under-utilised, under-performing, but with all the elements of a first class retail operation. I could see this was a business I could feel passionate about and that I could really use my retailing skills to develop its full potential.
“The coming together of Goodyear and Dunlop had created a great deal of uncertainty. The business was fragmented by old loyalties and structures. For a considerable time people didn’t know what was happening, where the future lay, and there was talk of the Equity being sold off. The perceived wisdom now is that tyre manufacturers should manufacture tyres. There was a period when they tried to control the whole chain through to the end user, but despite the obvious advantages the Equities were often usually the agents of the tyre manufacturer and sold what the manufacturer told them to sell. These were issues that had to be addressed. The difficulty of the disjointed management was one met by restructuring the business, but this could only be done once there was a commitment to the retail operation.
“Fortunately the new Goodyear Dunlop management could see merit in the retail operation and the decision to divest was reversed. We knew that there was confusion about who Motorway and Hi-Q were and what they each did. We needed to clear the clutter and create a cohesive approach. It was clear though that what was needed was a single organisation. The choice was made to re-brand the whole retail operation as Hi-Q, as that was the stronger of the two brands and the brand used for our strategic partner network. That re-signing and re-branding operation was completed by December 2003.”
Goodyear in the UK is looking for a truck or bus driver who has performed an heroic or outstanding deed in the course of his or her duties. The Goodyear Big Hero award is based on the long-running US Highway Hero award, which has been running successfully in the USA for decades, and will be launched at the Truckfest trucking festival in early May, when leaflets will be handed out to the thousands of truck drivers and members of the public who attend the event. Richard Lyons, sales director Goodyear Dunlop Tyres UK, said that the award is to improve the image of truckers, who are often portrayed as the “bad guys” of the road.
Goodyear Dunlop Tires Europe has strengthened its position in Scandinavia with an agreement to buy the outstanding shares of one of Sweden’s major retail tyre groups, Däckia. The company expects to complete the purchase of the chain by the end of June. Goodyear Dunlop currently owns 50 per cent of the shares with the remaining being primarily owned by Procuritas (26%) and Däckia management (24%). Financial terms of the deal were not disclosed. Däckia has more than 60 company owned stores, as well as 31 contract partners in cities throughout Sweden, with annual sales revenue of approximately $65 million. Däckia is widely regarded as one of the most successful tyre retailers in the Nordic Region.
Goodyear Dunlop has been chosen as tyre supplier to UK police forces for the next three years. Goodyear first secured the contract in 1994 and the new deal means that around 100,000 Goodyear and Dunlop tyres will be fitted to police cars, vans and motorbikes for each of the next three years.
Goodyear Dunlop Tires has announced a 10-year Business Transformation Outsourcing programme worth an estimated 50 million Euros in cost savings in two years. The agreement to partner with IBM on a procurement-to-payment program for indirect supplies represents another step in the company’s effort to reduce costs by 1.5 billion US dollars by the end of 2005. Goodyear Dunlop Tires Europe will retain its core purchasing competencies, the activities of between 50 and 80 Goodyear Dunlop employees will be transferred to IBM, on a phased basis.
Neil Burrows (44) has been appointed to the newly-created role of Marketing Director for Goodyear Dunlop UK. He joins the company from Nissan Europe,
where he was responsible for advertising and brand management across Europe. Before this he was Marketing Director of Nissan (GB).
Goodyear Dunlop Tyres UK Limited has announced that it has initiated an information and consultation process with Union Representatives regarding possible redundancies as a result of the removal of car and radial light truck tyre production at its Plant in Wolverhampton, West Midlands. The company has advised the UK Department of Trade and Industry and our Unions today that we will be ceasing production of car and radial light truck tyres in Wolverhampton and that up to 420 associates could potentially be affected. The remaining production from Wolverhampton is unaffected by this decision, with tractor tyre manufacturing and other processes used in tyre production, such as mixing, calendering and retreading, continuing on the site.
Goodyear Dunlop has appointed Paul Wilde (39) as Director, Consumer Strategic Business Unit, UK. The role gives him responsibility for the consumer business of Goodyear Dunlop, covering car, van and 4×4 tyres. He joins Goodyear Dunlop from Reckitt Benckiser, where his responsibilities included Sales Director for China, General Manager, Philippines and Regional Project Director, East Asia.
Goodyear has announced that Samir Gibara (64) will resign as chairman at the end of June. He will be succeeded by Robert Keegan (55), who is currently president and CEO and who will retain responsibility for these two roles. Gibara joined Goodyear in 1964 and has been chairman since July 1996. He paid tribute to the speed with which Keegan “learned the industry and demonstrated his leadership abilities”. For his part, Keegan said that Gibara had provided “important and valued counsel” since Keegan joined Goodyear in October 2000 as president and COO.
Goodyear Dunlop UK Limited has begun a consultation process with the unions and public authorities regarding the restructuring of its UK Sales Operations at Tyrefort, Birmingham. Andreas Niegsch, General Manager, said the move was necessary “to become a more flexible, dynamic and responsive organisation in a highly competitive marketplace.” He added that the restructuring would mean job losses, with up to 116 associates affected at Tyrefort and 100 in field operations. The consultation process is scheduled to run for 90 days.
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