September new car registrations for Western Europe rose by 4.4 per cent over last year across the main five markets (France, Germany, Italy, Spain and the UK), which was better than many industry analysts had forecast. Over the 15 EU members, figures were broadly similar (+4.5 per cent). In unit terms, registrations totalled 1,363,206 units.
Nine Teams from seven countries will take part at the Fulda Challenge in February 2004 in Canada’s Northwest Yukon Territory – two of the teams come from Great Britain. One team will be Gill Watson/Gary Bullen, who qualified last weekend in Sulden (Italy).
While not one of the world’s giant tyre manufacturers, Kumho is in the top ten and the company realised some time ago that it needed to concentrate on its overseas activities if it were to grow, but this is easier said than done. There is no doubt that established brands have a terrific advantage – everybody knows their name and they have decades of history behind them. Of course, this has not been achieved overnight and is the result of many years of effort and considerable financial outlay and it is a daunting task for a comparative newcomer into a market to try to get its name known, especially when the target is a considerably shorter time frame than decades.
So the question is how to boost awareness in a number of diverse markets across the globe in a manner which makes economic sense? Different countries have differing cultures and tyre requirements, but Kumho realised that a common factor – and one popular in most countries – was that of motorsports. Thus it was that, in the 1990s, Kumho began to develop its involvement in international motorsports, in a strategy that was to become central to the worldwide marketing of the Kumho brand.
This strategy is by no means unique – after all, the Yokohama brand established a reputation for high performance in the UK after cars shod with its tyres won four consecutive British Touring Car championships from 1990 to 1993. However, the biggest pitfall in such a strategy is that, if you are going to go down the motorsports route, then you have to be sure that you are going to be good at it and you need implicit faith in the product. You also need to divert considerable resources towards R&D and to provide the technical back-up that so many motorsports events require nowadays – the tyre manufacturer has to do so much more than merely provide tyres.
This, then, was the route that Kumho decided to pursue and the quality of the racing product has been proved in competition over the years. Perhaps the highest-profile recognition came when Kumho ECSTA S700 tyres were adopted as the control tyre for the Formula 3 Euroseries, which is a series of 10 races, taking place in five different countries (Germany, France, Italy, Austria and The Netherlands).
Further recognition came in 2002, when Kumho signed a five year contract as the official tyre supplier to the Marlboro Masters of Formula 3, which brings together the best drivers from various European national championships. Last year Kumho was the control tyre for the first time and the lap record at Zandvoort in The Netherlands was broken – a dream start for the Korean company.
This year’s Marlboro Masters was contested by 49 drivers from 20 countries and for some of them (notably those from the British and Italian championships, which use another make of tyre) this was their first experience of racing on Kumho tyres. The race took place on a blisteringly-hot day at the Zandvoort track, attended by 55,000 spectators. Kumho branding was much in evidence and, indeed, the company has a very close association with the venue, having adopted a corner at the circuit in order to capitalise on the estimated TV audience of up to 800 million for last year’s event.
Lassa has announced the appointment of John Westwood as the new senior director responsible for the running of its London-based European export sales operation. He joins the company after a long and distinguished career with Goodyear in a variety of senior sales and marketing positions. Mr. Westwood will replace Gunduz Akin as European Sales and Marketing Director, responsible for all Lassa brand sales in Austria, France, Germany, Italy, Spain, Portugal, Sweden and the UK. Mr Akin has returned to Turkey to work for Lassa’s parent company, Brisa.
The Bologna trade fair centre was host to the 20th Autopromotec exhibition. There is little doubt that Autopromotec has become one of the most important trade shows in Europe for automotive equipment, machinery and services for the transport industry. This is borne out by the ever-increasing number of exhibiting companies. This year, there were 936 exhibitors, 662 from Italy, 184 from the EU and a further 90 from other nations. These were located in 12 halls, covering an area of 80,500 square metres, plus 3 outside demonstration areas of 10,500 square metres. In real terms, this is only a slight increase over the previous show in 2001, in terms of participation. During its five-day run 83,850 trade visitors attended Autopromotec, a small rise over 2001. Of this number, 13,464 were from abroad, which was a 5.5 percent improvement. What was significant was the visit by a record 21 official foreign trade delegations specialising in strategic markets within the automotive industry.
Marangoni’s much delayed official launch of the Zeta Linea came at Italy’s Adria race Circuit at the beginning of June. Already, the Zeta Linea has been receiving considerable press coverage in Germany where tyre tests are popular features in motoring magazines, and with the tyre trade. In most tests the Zeta Linea is performing at least as well as the benchmark tyres from leading manufacturers and in some tests exceeding their performance. These test included excellent results from the ADAC UHP tyre test. The presentation of the tyres was led by Christophe Huss, Marangoni Tyre Export Manager. Mr. Huss began by highlighting the sluggish growth in the European tyre market over the past decade, an average of 3.4 per cent. Plant facilities had fallen in number from 111 to 83, a drop of 25 per cent. This he compared with Marangoni Tyre’s growth rate over the same period an average of 22.4 per cent; a performance that he put down to Marangoni’s specialisation in high value products; snow tyres, and UHP for example. Before taking the tyres to market they were thoroughly tested by TÜV in Germany, RDW in the Netherlands and by German tuning expert Franz Engstler. Marangoni tyres have also been used in the Marangoni Junior Trophy Championship on VW Polos racing in Italy. On the Scuderia del Portello Alfa Romeo in the Carrera Panamericana. The sporting heritage of the Marangoni product is growing rapidly alongside its market success in Europe. T&A has already discussed the marketing process using local dealers as equal partners in the marketing team in the November 2002 issue. However, to recap, some 200 local distributors and agents all take part in the decision making process with Marangoni. They have the close contact with the market and by listening to them Marangoni can work with the market, as it is developing. Angelo Priori, R&D Director for Marangoni presented the key PST issues, the tyre cavity design; processing development; and materials development. Mr Priori explained the new tyre profile with a narrower section and tread arc width for improved aquaplaning and more controlled progressiveness (the adaption to changes in road surfaces); reduced ply length for improved response, reduced weight and greater construction flexibility. A larger curing width to the tyre improves rim seating and minimises moulding defects. The deflection point in the side wall is also higher than before giving a larger response are. The tread has pitch sequence optimised for noise control, whilst the cap/ base is a combination of three compounds. A firmer cap layer to give the required characteristics for the tread pattern, a cushioned base layer for comfort and a wing compound to give the required shoulder and sidewall compounds. This required the development of tyre building machinery specifically adapted to the needs of Marangoni, and although the underlying tyre builder is one used by many tyre manufacturers, Marangoni’s equipment division has developed modifications to the plant to specifically handle the production of the new Vanto and Zeta Linea tyres.
T&A attended the 15th Slovak Rubber Conference to find out what made it so popular with the delegates. As rubber conferences go the topics of conversation can be a source of stunned amazement to the layperson. The idea that people gather from across the continent, or indeed the globe, to discuss the rubber industry is beyond their understanding. If you tell them that the conference is in Paris or Hamburg, they smile knowingly. They understand, they believe, that it is a couple of days of high living on company expenses under the guise of a trade conference. Tell them that the event is in Puchov, in the Slovak Republic and their knowing smile turns to sheer incredulity. Where, they ask, is Puchov? And why would anyone go there? The where is Slovakia, close to the Czech border and the home of Matador. As to why anyone would go there, that may be because the Slovak Rubber Conference is an event of growing interest. The fact that some 200 delegates paid for the privilege of attending suggests that the event has a value beyond a night out sampling Parisian or Hamburg nightlife. Delegates came largely from Eastern Europe and the CIS, but also from the UK, Italy, Finland, Netherlands, Germany and doubtless several other nations. More than one delegate told T&A that the background of the event was of interest. It was generated by the Slovak Rubber Institute supported by Matador. The conference, although a flag flying exercise by Matador, was less commercialised than most others and the emphasis is on technology and business developments rather than an extended sales event – though needless to say some of the presenters and delegates had indeed something to sell. That lack of commercialism left delegates free to discuss the subject matter, make contacts and seek out technological partnerships, rather than face a barrage of sales talk from commission paid representatives. Indeed, one presenter made a rather obvious sales pitch that was greeted with some dismay by the organisers – this was not what they has intended, though inevitably commercialism will penetrate any successful event. The conference was opened by Stefan Rosina Jnr, who has stepped into the position of President of Matador upon the retiral of his father, Stephan Rosina Snr. He highlighted and thanked the delegates for their support of the 15th Slovak Rubber Conference. An event, he said, that represented a coming together of experts from the rubber industry with a growing global importance. It was relevant that this was the penultimate conference prior to European Union entry and he touched on the positive and negative impacts of EU entry both to Slovakia and to other states about to join the EU. “Most of the effects will be positive,” he felt assured, “There would be an access to markets, to technology and the reduction of trade barriers.” For the Conference he could envisage it reaching a wider audience once Slovakia was a member of a wider European Union. This should give the conference an even greater stance in the rubber industry. ”The negative effect though was one that posed a real threat to the industries of the new states. It made acquisition by larger foreign investors more of a possibility, but more immediately it could create a flow of qualified engineers to the West – drawn there by higher salaries, better conditions and a higher living standard. However, ultimately even that negative could be turned into a positive if these skilled engineers were to return in later years with a wider experience and greater skills base.”
When Pirelli became active in the telecommunications business, there was speculation that the company might abandon tyres, or at least certain sectors, such as truck tyres. This has proved to be unfounded, however and Francesco Gori, the man responsible for Pirelli’s tyre business worldwide, discusses the results for the first months of this year. The Tyre Division accounts for 51 per cent of Pirelli’s overall turnover and, although the Tyre Division turnover in quarter one 2003 fell by 2.2 percent to 741 million Euro, the EBIT increased at the same time by 20.4 percent to 65 million Euros. Pirelli is still a mainly European tyre manufacturer. 60 per cent of its turnover (14 per cent in Italy, 46 per cent in the rest of Europe) comes from Europe. Pirelli’s Tyre division makes another 19 per cent of turnover in Latin America, while Northern America only accounts for 8 per cent. But this in turn shows the huge potential that Pirelli still has in the biggest single market in the world. And it is the new MIRS-plant in Rome, Georgia, that will be looked to to improve Pirelli’s standing in the American market. Francesco Gori can sit back and await developments because the starting point for Pirelli is much better than for that of many other tyre manufacturers. This is mainly because the UHP sector, where Pirelli sets the standards, is much more cost resistant than any other sector. And with its new MIRS-plant, Pirelli has just begun to write a long and successful history, Gori says.
Fiat has released details of its latest restructuring plan and, as expected, 12,300 jobs will be lost as a result, with 12 of the company’s 138 plants worldwide being closed. Many of the job cuts will be outside Italy, mainly at Case New Holland and Iveco factories. Fiat also announced an increase in R&D spending and new products of 17 billion Euros, plus a plan to increase capital with a 1.8 billion Euros rights issue.
Next week Fiat will announce details of its restructuring plans, which are expected to see worldwide job cuts of 10,000, many of which are likely to be in the US operations of Case New Holland. 1,000 jobs will go in Italy, through early retirement. Fiat chief executive Giuseppe Morchio will announce detailed plans on Thursday 26th and it is said that greater emphasis will be placed on R&D in the future.
Marangoni – in the UK the name Marangoni means little to the man in the street. To people in the tyre trade Marangoni in the UK means a quality mid-range tyre product, either as Marangoni or as Stunner from Group Tyre. Some may also be aware that Marangoni produce car and light truck retreads through their retread division Marangoni Pneumatici, headquartered at Rovereto in the North of Italy. Marangoni’s car tyre retread plant at Feltre produces up to 1.25 million pieces per year that are sold throughout Europe. Brenno Benaglia, sales and marketing director for Marangoni Pneumatici is at pains to explain that there are no plans at all to enter the UK market with truck tyre retreads. “It is not part of our business plan, it would create problems for our other operations if we were to take on our own customers in head to head competition.” However, the company will be exhibiting at the Hillhead Quarrying Exhibition with a view to introduce earthmover retreads.
Network solutions provider Panduit Ltd has signed-up with Pirelli Cables and Systems to include the Sirocco Blown Fibre System in its range of structured cabling solutions. The system, which will begin to be installed by Panduit in Italy shortly, uses a novel ducting system to carry network cables throughout homes, schools and businesses. Its major benefit is that it allows customers to easily upgrade their network capability as bandwidth requirements increase. Rather than installing networks with expensive, just-in-case fibre-optic cables at the outset, the Sirocco system allows new cables of varying capacity to be blown through the ducting to the point it is required, at the time it is required.
King Carl VI of Sweden was welcomed to Pirelli by Marco Tronchetti Provera, chairman and chief executive officer, where he visited Pirelli Labs and viewed the MIRS-CCM plant. Carl Gustav XVI was accompanied on his visit by a delegation from the Royal Swedish Academy of Engineering Sciences. The Pirelli Labs span 13,000 square metres in the Milan-Bicocca area and represents one of the most advanced research centres in the world. Projects include research in materials for energy generation and distribution and for new tyre production. The MIRS plant was opened in July 2000 as a pilot project and in three years has become a fully operational system installed in Germany, UK, Italy and the USA. Recently Pirelli added the continuous compound mixing (CCM) process to the facility allowing an unprecedented qualitative control of materials. The visit concluded with a lunch at the Castle Bicocca degli Arcimboldi where Marco Tronchetti Provera presented King Carl VI Gustaf with the first of the PZero Tempo wristwatches, numbered 001. The King presented Marco Tronchetti Provera with a crystal plate to commemorate the visit.
Ahead of the official figures, analysts are predicting a fall of 6 per cent in November for sales of cars in Western Europe. All of the five major markets showed a drop in sales. France was down 10 per cent, the UK down 6.8 per cent, German sales fell 6 per cent, Spain was down 8.7 per cent and Italy showed a small fall of 1.3 per cent. Among the car manufacturers, the only positive growth (+10 per cent) was for the Japanese companies, notably Mazda, Mitsubishi and Subaru. Ford was next best, showing a decline in sales of only 1.9 per cent. The worst performers were Fiat and BMW (both down around 20 per cent).
Fiat has laid off 5,600 workers for at least a year while the company restructures. Those laid off blocked two main roads in Italy, while some of those who still had jobs went on strike in sympathy, halting work at the company’s Mirafiori car assembly line. More stoppages are planned and the metal-workers trade union is calling for a general strike in Turin this Friday. The Italian government has given Fiat the go-ahead to lay off up to 8,100 workers, some of them temporarily.
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