Warnair part of SRI
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.
Founded in 1898 by Frank Seiberling, The Goodyear Tire & Rubber Company is an American multinational tyre manufacturing company based in Akron, Ohio. It is one of the oldest, biggest and best-known tyremakers in the world. Goodyear makes tyres for automobiles, commercial trucks, light trucks, motorcycles, SUVs, racing cars, aeroplanes, farm equipment and heavy earth-mover machinery. Find all the news and analysis you need relating to Goodyear here.
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.”
While the Goodyear shares jumped around 5 per cent to 8.56 US-Dollars on the stock exchange, finance experts have reacted more cautiously. Rod Lache, DB-analyst in New York, doubts whether the contract with the unions or the closing of a factory in the USA last year is sufficient to have a positive effect on the high fixed costs. He expressed surprise that Goodyear’s volumes slipped by 1.7 per cent while the industry gained 3.7 per cent. The value of Goodyear shares is in the region of 6 US-Dollars, according to Deutsche Bank.
Goodyear has announced record sales of US$ 15.1 billion for 2003 and a net loss of US$ 802 million. Turnover in 2002 was $13.9 billion and the net loss $1.227 billion. $750 million of the increase in turnover came from favourable currency exchange rates. The company’s performance in Europe (both east and West) was satisfactory and, while Goodyear chief Keegan was very optimistic during a conference with analysts, but he had to admit that the much-needed turnaround in North America had not taken place as expected. In 2002 the corporation had to pay $241 million in interest and this sum escalated to 293.6 million last year.
The Goodyear factory at Tyler, Texas, is to increase daily production by 3,000 tyres to 27,000. This follows growing demand for Goodyear’s new Assurance line of tyres and will involve the recall of around 50 workers. These were among 200 staff laid off in November last year.
Goodyear Tire & Rubber is seeking an extension from regulators to file its quarterly report. The company said it plans to file the report by mid-June. As reported, the firm last month restated its net income for 1997 through 2003, less 65 million US dollars. Shares closed at 8.22 dollars, down 22 cents.
Goodyear has filed lawsuits against 12 chemical companies, accusing them of price fixing and overcharging for the synthetic rubber EPDM (Ethylene Propylene Diene Monomer) during the period from 1994 to 2002. EPDM is used in tyres and hoses as a strengthening agent and to provide resistance to ozone and ageing. The 12 companies are based in the USA, Germany, Italy and The Netherlands and one – Crompton Corp. of Connecticut – is reported to have already pleaded guilty to conspiring to fix prices of rubber chemicals and is to pay a $50 million fine.
Goodyear has presented awards to more than 350 associates at its Technical Centres in Akron and Luxembourg, recognising the contributions their inventions and innovations have made. Last year alone, the associates were responsible for more than 260 US patents and 68 trade secrets. Robert J. Keegan, chairman and CEO, paid tribute to the Akron group, saying: „I have tremendous respect for what you do.“ He said that technology is critical to Goodyear’s turnaround – not only in developing new products, but in getting them to market faster.
Pelmar Engineering, the Israel – based dealers in used, reconditioned and new tyre machinery, have recently bought the entire equipment released by Goodyear Wolverhampton as a result of closure of about 50 per cent of their plant. The equipment is now being dismantled and removed; part of it directly to customers and part to Pelmar’s warehouse in Manchester. It includes mainly rubber compounding and processing equipment, such as complete extruder lines, calendering lines, mixing lines and miscellaneous other machinery. Pelmar has seven warehouses in Europe, Israel and U.K., providing machinery, engineering and complete turnkey projects related to the technical rubber and tyre industries worldwide.
In the US, Goodyear is launching its biggest media campaign since the launch of the Aquatred in 1992, featuring its new Assurance tyre brand. A 30-second advert will run on network and cable television during prime-time viewing hours. It will also be shown during popular late-night shows (Jay Leno, David Letterman etc.) and will run during high profile sporting events such as the Kentucky Derby. The campaign also features a 90-second mini-film to be shown in cinemas – the first time Goodyear has used this medium. Both the TV commercial and the movie were shot in Iceland, directed by film director Jan De Bont and feature the voice of internationally famous actor Patrick Stewart.
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 has said that it plans to increase sales in Ecuador this year by a third; from US$9 million to $12 million. The company plans to sell more than 200,000 tyres and increase the number of service centres in the country from 23 to 37 by the end of the year. The US plans to negotiate a free trade agreement with Ecuador, which Goodyear says would provide incentives for local tyre manufacturers to increase efficiency and competitiveness.
Goodyear’s lenders under its principal US and European credit facilities have amended the terms of the facilities to extend until May 19 the company’s deadline for filing its 2003 Annual Report on form K-10 with the Securities and Exchange Commission. As such, Goodyear will be able to access the credit facilities or obtain letters of credit, despite the delay. The company originally said that it would file its 2003 K-10 and amended 2002 K-10 by mid-May.
In India, MRF has topped a JD Power study on OE tyre customer satisfaction for the third year running. More than 1,500 owners took part in the study, assessing tyres on 20 different attributes. Bridgestone, JK Tyre and Goodyear were behind MRF in the ratings. This year’s study was the first to deal solely with radials, as these account for nearly all tyres fitted to new passenger cars in India. The survey also revealed that more than 20 per cent of new-vehicle buyers choose the brand of tyres fitted on their new car.
Samir G. Gibara, former chairman of Goodyear Tire & Rubber Company has been elected to the Dana Corporation Board of Directors. In addition to his Dana Corporation appointment, Gibara serves on the board of directors of Sumitomo Rubber Industries and International Paper.
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