LEGISLATION
When it comes to the development of the 4×4 tyre segment, there are still two sides to the market, according to a Continental UK analysis. But on one side at least there are clear signs of the car-ification of 4×4 tyre line, something that has developed in parallel with continued purchase of SUV type four wheelers.
A survey carried out by car supermarket Motorpoint indicates a healthy level of support for mandatory winter tyres in the UK. More than 1,400 people responded to the online study and 46 per cent of these expressed support for the introduction of legislation that would compel motorists to fit winter tyres. Commenting on the subject, Motorpoint managing director David Shelton said “while Government legislation may be a step too far at present, given the shocking state of our roads during the recent bad weather, winter tyres could be a sound investment for many people in the future.”
In order to prosper in today's competitive market, a company needs to be able to identify trends and wholeheartedly embrace new opportunities. A good example of this is Autogem, which used to be a market leader in the supply of exhaust fittings and workshop consumables, but which is now regarded as an authority on tyre pressure monitoring systems.
While it is true that all run-flat tyres must have some form of TPMS, the number is still comparatively small. However, says Prashant Chopra, managing partner at Autogem, this will all change, as from November 2012, a European Directive states that all new category M1 vehicles will have to be fitted with TPMS.
Mandatory fitment of TPMS to new vehicles doesn’t kick in until 2012 officially however, due to the lead time necessary in producing 2012 model year vehicles, those same vehicles and the TPMS sensors they will be using are likely to already be in production. So, as we rapidly approach the mandatory introduction of tyre pressure monitoring systems (TPMS) later on this year and with aftermarket suppliers and service providers paying more attention to the subject than ever, the question now is what can we expect from the TPMS market this year?
While most of the western world celebrated New Year at the end of December, both China and South Korea were making plans for their celebrations at the start of February, based on the lunar calendar. Back in 2010 Nexen Tire Corporation announced plans for a 1 trillion won (US$1.2 billion) investment in its largest factory yet in Changneyeong in the same region as its first plant (Yangsan), which along with the company's second plant in Qingdao, China, continues to expand. Just before the oriental entrance into the new decade, Tyres & Accessories had the opportunity to visit Nexen on its home South Korean and adopted Chinese territory and saw how the company is implementing its plans to become a US$2.5 billion company in the next five years.
Having received 2010’s Winter Tyre of the Year from consumer views website TyreReviews.co.uk for its SP WinterSport 3D, Dunlop stated that the recognition could help to further the prominence of seasonal rubber in the UK. Goodyear Dunlop PR support manager Kate Rock said: “We’re very pleased to win the TyreReviews award. This accolade will help us build on the successes of winter tyres this season, and continue to make winter tyres more relevant to the UK market. Awards like this help to give us leverage when we communicate the benefits winter tyres offer UK drivers when the cold weather arrives.”
If you cast your mind back to before 2009’s Apollo/Vredestein merger deal was announced there was much talk about plans for the construction of a greenfield tyre production plant in Hungary. Newspaper reports published at the time suggested that Apollo had earmarked around 200 million euros for this. Most observers interpreted the Vredestein purchase as being a substitute for the Greenfield plans, but bearing in mind that the pricetag was reported as being just US$ 50 million in June 2010, it raises the question of what was done with the rest of the money. The short answer is that Apollo executives say they have invested it in the construction and rapid development of its Chennai manufacturing facility, which had a budget of around 350 million euros before the firm decided to further its plans for truck and bus radial tyre production last year. Anything else looks like to have been absorbed by the company’s liabilities. However, regarding the Chennai investment Tyres & Accessories recently had the opportunity to tour the facility, see production in action and learn more about the thinking behind the investment.
Following the success of the recent NTDA’s Tyre And Fast Fit (TAFF) including the sell-out crowd at the 2010 event, the association has announced that this year’s annual dinner and awards event will be held at the Birmingham Metropole hotel on 20 October.
It has been a clear two months since my last rant about the state of the MOT test and with road safety minister Mike Penning having recently confirmed that a wholesale review of the test will be carried out, it is about time for an update. While almost everybody in the UK industry agrees that moving to two year testing intervals – whether it is in line with the rest of Europe or not – some would argue that a review of the system is overdue. In addition technological advances such as the mandatory fitment of tyre pressure monitoring systems (TPMS – scheduled for 2012) and the widespread use of ESP have moved quicker than legislation or testing rules that examine if these safety critical systems continue to work correctly throughout the life of a car.
The Health and Safety Executive (HSE) is highlighting the European Chemical Agency’s (ECHA) campaign to remind companies that new rules on classification, labelling, packaging and notification of chemical substances came into force on 1 December 2010. From December, within one-month of placing a chemical substance on the market, all companies involved in their manufacturer or import will need to notify the ECHA for their inclusion in the new Classification and Labelling Inventory.
Despite tough external conditions Cooper Chengshan’s top line growth is said to be “progressing well” in 2010 and the firm’s “amazingly strong” domestic truck and bus tyre market growth in the first quarter of this year is a key highlight of this performance. Meanwhile the company’s passenger car tyres sales have reportedly continued on their “relatively consistent” recent trajectory. Looking forward, Cooper Asia general manager and Cooper Chengshan boss Allen Tsaur reports that the company is well prepared for the forthcoming 2012 tyre labelling legislation across all its brands.
From Cooper Chengshan’s perspective the new laws are a good thing that “drives us forward.” However, this is clearly not the case across the board in China, with Tsaur reporting that an estimated 80 per cent of tyre suppliers are not up to scratch when it comes to labelling legisaltion preparedness. Out of roughly 300 tyre manufacturers currently operating in China, only the top 30 are said to be of a “good quality” that is compatible with exports into the mature markets. Of these, only the top 10 (including Cooper Chengshan) are already set for the 2012 rules.
While most German and Polish drivers make preparations for the bleak midwinter, Goodyear Dunlop says the only response from the west and south of Europe is often to “hope and pray the snow will stay away.” Snow has already fallen in parts of the country and the European Centre for Medium Range Forecasting predicts temperatures colder than average for this winter, yet despite warnings of another big freeze coming our way, a recent survey held for the tyre maker reveals a “Europe divided” between those countries who are switching to winter tyres and those that think they can weather the storm. More than half of French and Belgian drivers, two thirds of Spanish and three quarters of British drivers admitted they would not use winter tyres.
The Genuine Parts Australian Formula Ford Championship has extended its deal with Avon Tyres, with the brand continuing as the championship’s control tyre supplier for at least the next three years. Avon’s tyres will be distributed and engineered through the season by Gordon Leven Motorsport Tyres, which continues its 15-year involvement supplying Avon rubber to the championship. All tyres will be manufactured at Cooper Tire’s plant in Melksham, England.
The recent Brityrex exhibition saw Tyresensors.com exhibit featured the company’s range of Schrader OE replacement sensors and service kits, not to mention the firm’s ATEQ line of TPMS trigger tools, which it exclusively distributes in the UK. So how did the exhibition go?
“A lot of people were interested in TPMS in generally as well as our parts in particular,” managing director Ian Smith told Tyres & Accessories, adding that the company’s ATEQ tool demos had the effect of drawing visitors in. As a result the company representatives report that they made “a lot” of good contacts, with a real emphasis on the quality of the leads gained.
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A dominant player in the UK passenger car and light van sector, in which it estimates it has a market share of “75 per cent and growing”, Kwik-Fit Fleet has seen increasing opportunities for the provision of fleet maintenance since the recession – hastening the advance of policies already in play before the financial crisis. Peter Lambert, sales director at Kwik-Fit Fleet told Tyres & Accessories that the extended replacement cycles of many car and van fleets coincide naturally with “increased fleet demand for tyres and mechanical work including vehicle services and MoTs”, while also increasing pressure on fleet managers to ensure older vehicles remain on the road. “We anticipate that fleet demand for all forms of mechanical work at Kwik-Fit centres will continue to increase as all businesses look to minimise vehicle downtime,” concludes Lambert.
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