Hankook Tire reports its profits in Korea jumped 22.4 per cent in the second quarter of 2010 to KRW 822.3 billion (£443.1 million), a figure the Korean tyre maker claims to be its highest ever quarterly result. This quarter high water mark was achieved on the back of a 13.0 per cent year-on-year increase in global consolidated sales, to KRW1.4 trillion (£754.4 million) and a 22.7 per cent year-on-year growth in operating profit to KRW 177.7 billion (£95.7 million).
Recognising R H Claydon as “the leading UK truck tyre distributor,” Infinity Tyres has appointed the well-known wholesaler as the exclusive distributor for Infinity Truck (TBR) tyres in the UK. The news follows “a couple of months of discussion and negotiation,” which resulted in the new agreement being concluded. Infinity truck tyres will now be available from all of Claydon’s UK branches – Bury St Edmunds, Falkirk, Scunthorpe, Stockport and Swindon.
Hankook Tire has established a Global Education Center in Korea, a facility it says is intended to “collaborate and foster the company's production system.” Located within the tyre maker’s Daejeon plant, the new centre is intended to enhance the skills and abilities of staff working in production and other positions at factories in Korea, China, Hungary, as well as in plants Hankook intends to set up in the future. Through the Global Education Center, Hankook Tire expects to strengthen collaboration between members of its global production network, thereby ensuring production quality is of a unified standard.
Bernie Ecclestone believes faster wearing tyres will make for more exciting racing in Formula One. According to Tire Review, Ecclestone told Italy’s Gazzetta dello Sport he thinks F1 tyres should last no more than 100 kilometres, forcing teams into at least two pit stops. “People want more overtaking," Ecclestone states. “I have a proposal: tyre sets that can be used for a maximum of 100 kilometres, with the one used in qualifying to be used in the first part of the race. This way we'd have more tyre changes at different times and there would be more confusion. The best races are the messy ones.” Ecclestone made no mention that fuel stops have been eliminated from F1 races, removing as many as two pit stops per race.
When Hankook Tire kicks off the second quarter earnings season for auto/auto part makers on 20 July, it will set the tone for a “lacklustre” set of results from the Hankook, Kumho and Nexen, according to Deutsche Bank. In an investor’s note dated 1 July 2010, Deutsche Bank research analyst Sanjeev Rana: “We expect tyre makers such as Hankook and Nexen Tire to report in line or slightly below consensus results due to the burden of higher rubber
prices.”
Construction work on Nexen’s newest passenger car and light commercial vehicle tyre factory in South Korea’s Gyeongnam Province has begun following its groundbreaking ceremony on June 24. The 500,000 square metre Changnyeong facility is being built with a 1.2 trillion won (£646 million) investment and Nexen anticipates its output will boost the company’s South Korea and China total to 60 million pieces per annum.
After some 46 years in the industry, well known tyre industry veteran Dick Anderson retired from wholesaler RH Claydon on 30 June. Having started as a youngster in the industry with North British Tyre & Rubber (latter to become Uniroyal Tyres) in Edinburgh in 1964, Anderson says that he has enjoyed his time “in a fascinating and now complex industry” and seen the many changes over the years.
Hankook Tire’s North American OE activity is growing – in more ways than one. For the first time ever, the Korean tyre maker will supply a 20-inch high-performance tyre as original equipment to a North American manufacturer. This sizable dimension will be fitted as an option on the Canadian market 2011 Lincoln MKT, due to be released later this year. Other MKT models will be equipped with 19-inch Hankook tyres.
Tyre makers whose products performed well in the 24 Hours of Le Mans have expressed delight with the results obtained. First amongst this group, naturally, is Michelin, following a one-two-three Audi finish. Following the successive eliminations of its four main Peugeot rivals, the Michelin shod Audi team was able to secure a fourth hat-trick at Le Mans. In addition to monopolising the top three places in the overall standings, Michelin runners took the top prize in each of the four classes for the third straight year.
Michelin is reportedly close to pulling out of its present bid to supply tyres to Formula One in the 2011 season of the motor racing series. If correct the news reports, which are based on French newspaper L'Equipe’s publication of an interview with Michelin managing partner Didier Miraton, leave Pirelli as the front runner. Rumours have suggested Pirelli has been favourite to secure the contract for a few weeks, but delays in agreeing a deal had suggested Michelin was still in the running.
In coordination with National Tire Safety Week, Hankook Tire America Corp. is offering tips and advice to ensure consumers’ tyres are in good working condition for summer travel, reports Tire Review. “Not maintaining proper tyre inflation pressure costs consumers hundreds of dollars during their driving lifetime,” said Bill Bainbridge, director of brand communications for Hankook Tire America Corp. “Even slightly underinflated tyres require more energy and build up damaging heat more quickly. This leads to reduced fuel economy and paying more for gas than you need.”
Hankook Tyres is reportedly planning to supply its tyres to Formula One racing teams “within a few years.” The Australian Brisbane Times quotes Hankook executive vice president, Hyun Bum Cho, as saying: “In the future we want to have some hefty market share in that [racing] segment. It’s quite profitable…but in order to really leverage from motorsports in terms of brands, you need to participate in either World Rally Championship or a very high segment in Le Mans, or Formula One…So in the future that’s the target that we have, to participate in those segments.”
After experiencing 31 per cent growth in the first quarter of 2010, market analysts are predicting that second quarter car production could have increased by as much 10 per cent for the second quarter and may increase 20 per cent for the first half as a whole. Current estimates suggest European production will increase 3 per cent in the second quarter.
The Volkswagen T5 van, produced at the company’s factory in Hannover, Germany, has the distinction of being fitted with the first tyres delivered to a European manufacturer directly from Hankook Tire’s plant in Rácalmás, Hungary. Supply of the Hankook Radial RA 28 in sizes 205/65 R 16 C and 215/65 R 16 C began following a Volkswagen audit held a year ago. A new audit of the Rácalmás facility has now been conducted, and Hankook has received an ‘A’ certification, the highest rating available.
Hankook Tire has expanded its North American original equipment portfolio with new additions from Ford, Volkswagen, Hyundai and Kia. The tyre maker now supplies its Optimo H426 for the 2011 North American Ford Fiesta model and for the 2010 model Kia Soul and Forte 2010. In addition, Hankook is expanding its fitment of the Optimo H725 to the 2010 Ford Taurus, the first time a Hankook tyre has been fitted OE to a Ford family car segment saloon in this region. The Optimo H725A will be fitted to the Volkswagen Golf as original equipment in North American markets, continuing a partnership that began last year with fitments on the new Beetle, Jetta and Jetta SportWagen.
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