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.
The Kelly brand is to be relaunched at the Tyrexpo Europe exhibition in the UK in March. Director of Kelly Europe, Chris Kisby, says that the relaunch will give Kelly a powerful presence in the ‘price shopper’ market segment and a clearer identity in relation to the other group brands, Goodyear and Fulda. New products to extend the range will also be introduced at the show.
Goodyear Dunlop Tires Europe has announced the appointment of three managing directors for France, Germany and the UK. Sylvain Valensi will head up France, Gerd Grünenwald takes control in Germany and Marco Molinari returns to the UK for his second stint as MD. Goodyear GB’s current MD – Steve MacDonald – will retire after 27 years with the company.
Goodyear’s EMT (Extended Mobility Technology) tyres are the most popular run-flat tyres sold as original equipment. For next year, Goodyear is expecting new record sales of one million EMT tyres to car manufacturers.
Agritechnica is the largest agricultural exhibition in Europe and the 2001 event was held in Hanover from 13th to 17th November. This year’s show area has increased by 4% to a total of 196,000 square metres and more than 1,300 exhibitors from 30 countries showed their goods and services. The exhibition showcases the latest advances in technology for modern agriculture, including tractors, other agricultural machinery, accessories and spare parts. Included in these are tyre manufacturers who offer agricultural tyres, with such famous names as Continental, Goodyear, Michelin, TWS and Vredestein, among others. Agritechnica usually proves a great draw for those involved in agriculture; this year with 247,000 visitors 9.5% more came through the doors than two years ago, 34,000 of these coming from 100 countries outside Germany, and similar levels were expected this time around. The November date for the show is well-timed, as this is the time of year when many farmers are planning their investments for the coming season.
The world-wide market for agricultural machines and tyres is has been characterised by a rationalisation processes over several years. The leading competitors in the tyre sector (Michelin-Group, Trelleborg Wheel Systems (TWS), Continental and Goodyear) have more or less completed repositioning themselves in the market. The widest multi-brand variation has been attained by the Michelin-Group, which covers with its four brands (Michelin, Kleber, Taurus and Stomil) all price-segments and applications. However, the development of this tyre segment cannot be viewed in isolation. It is influenced and defined by a number of fundamental and mutually connected parameters. These are: · the general economical development of the agricultural sector, · the changing structure of the German agricultural sector since reunification, · seasonal influences/aspects (e.g. weather conditions) and · sales, numbers and specifications of agricultural machines (especially tractors). In Germany fewer and fewer farming companies have concerns about a permanently increasing average area of land – a trend that can be observed throughout the rest of Europe. At the same time agricultural machinery is becoming more powerful, larger and faster, and the tyre manufacturer has to produce a product that can cope with these demands and yet remain gentle on crops to ensure maximum yield. In the first half of the year 2001 the already decreasing number of machinery sales found an additional seasonal reason in the sinking investments of the farmers, due to the BSE and the FMD-crisis. The increased cost-consciousness of the farmers became obvious in an trend towards cheaper brands. In the second half of the year the tyre market recovered a little bit from its bad results in the first six months but the overall negative figures could not be overcome completely so that ultimately a five percent loss was expected, compared to the previous year. This meant a total number of 220,000 tractor tyres sold in Germany (radial: 143,000 pieces).
The tyre trade as we know it is fighting a defensive battle, finding it harder and harder to maintain its 60 p.c. market share of sales to the user. Not only car franchise firms with their recently acquired considerable strength give the tyre trade a hard time in competition, but new forms of distribution, which may be grouped together under the loose label “Fast Fit”, are on the advance. Many Volkswagen, Fiat, Ford (to name but a few marques) so-called contract dealers have had their contracts terminated and are looking for new means of earning a livelihood. These companies, mostly family-run, will not easily be displaced. They will specialise in marketing replacement parts complete with a competent and reasonably priced service. Fichtel & Sachs, a Mannesmann group subsidiary, offers a franchise system under the AutoCrew name, naturally also for the optimum marketing of its own products, shock absorbers. Bosch, the giant in the electrical field, is also looking for new openings for its service workshops. The objective is to gain marketing expertise in tyres by cooperation with Goodyear, with Bosch offering Goodyear’s tyre trade partners know-how in the automotive field in return. Specialist markets like ATU with their increasing importance in tyre marketing should not be overlooked either. In the nineteen nineties ATU grew from zero to the current number of 230 outlets throughout Germany, all of them with high turnover figures, i.e. each of them probably turning over well above 2.5 million euros. ATU founder Peter Unger’s appetite, however, is not nearly satisfied, the expansion will go on. The article in the January issue of NEUE REIFENZEITUNG describes the individual tyre marketers. It queries many things, asks many questions without being able or willing to provide the answers. Only one thing remains clear: To found a new company exclusively for tyre trading (including the services related to it) is dangerous. The chances of surviving a long start-up phase are regarded as relatively small. The gist of the article is this: In future we will see an ever increasing number of Fast Fitters making the bulk of their turnover with tyres, while Automobil, Bosch, AutoCrew and similarly derived Fast Fitters will focus mainly on other products, with tyres nevertheless generating a significant share of total turnover, somewhere between a quarter and a third.
First quarter results due to be released on April 19th should be better than expected. The capacity utilisation in all Goodyear’s factories was higher than last year and the fill rate has been further improved. If Goodyear can stick to the already announced price increases in the USA (3-5%), this will mean a faster than expected recovery.
After Goodyear gave a profit warning for the second quarter its share prices fell yesterday by 10% to US$22.5; in June 1999 the price was US$58.7. The increase in raw material costs (rubber, oil, carbon black), the failure of securing better prices and extremely competitive prices in the UK and Germany, as well as the weak Euro against the dollar are the main reasons. US economy magazines yesterday wrote about the necessity for Goodyear “to make immediate drastic moves over there (meaning Europe).
Directors of The Goodyear Tire & Rubber Co. have declared a quarterly dividend of 30 cents per share. The dividend is payable December 15, to shareholders of record on November 16. The payout represents an annual rate of $1.20 per share.
In the fourth week of 2000 the share prices of the tyre manufacturers Bridgestone, Continental, Cooper and Goodyear have hit a 52 weeks’ low. In this week alone, Toyo Tyres fell 10%, Bridgestone 6% and Goodyear 5%. Just a week before Toyo had marked an increase of 12% while again Goodyear (-8%), Michelin (-8%) and Cooper (-8%) did not fare so well.
Significant progress has been made in the management and disposal of scrap tyres in the USA, says Terry Noteboom, senior environmental engineer for Goodyear. Last year over 71% of the 272 million scrap tyres generated in the US was recovered, exceeding the recovery rates for aluminium, glass and paper.
On 1st August, the Goodyear Tire & Rubber Company declared a quarterly dividend of 30 cents a share, representing an annual rate of $1.20 per share. The dividend is payable September 15, to shareholders registered at August 15.
Reports in American newspapers suggest tyre tread separation problems with Goodyear tyres are being linked to eight deaths. The Goodyear 16 inch Load Range E tyres received a design alteration five years ago, but no recall was made. Goodyear said it had found no faults in the tyres, but did settle several lawsuits arising from the incidents. Amounts and details of the agreements have been kept secret. However, the lawsuits were very similar to those currently facing Firestone.
Goodyear’s newest Blimp has finished its first flight successfully. The blimp “Spirit of Goodyear” follows the “Spirit of Akron” which crashed last year.
Goodyear’s Chief Engineer of Product Design has warned of the economic cost of tyre under-inflation as gasoline prices reach a new high in the USA. Petrol consumption and tread life are adversely affected. A Goodyear survey showed up to 28p.c. of vehicles had “seriously under-inflated” tyres.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
