In addition to supplying tyres for the Octavia, Nexen Tire now also ships products for original equipment fitment on Škoda’s latest Rapid. Nexen’s N’blue tyres are fitted to Rapid and Octavia models manufactured at Škoda’s Mladá Boleslav plant in the Czech Republic.
Nexen Tire has taken on a new European sporting commitment with the signing of a sponsorship contract with German football club VFL Wolfsburg. The contract gives Nexen exposure through the 240 metre-long LED advertisement board and other advertising positions at the team’s home stadium, Volkswagen Arena, and on the VFL Wolfsburg homepage for the 2013-14 half season. Nexen also gains the right to use photos of the team’s players in its advertising and promotional activities.
Three tyres have been given a Good Design Award by the Japan Institute of Design Promotion (JDP) this year. These are the Bridgestone Blizzak VRX, the Toyo M929 TBR tyre and the Nexen N9000 semi street racing tyre.
Nexen’s third quarter figures have underperformed market expectations. According to Deutsche Bank research published 1 November, Nexen’s operating profit results were 13 per cent below consensus expectations.
During the third quarter of 2013, net sales at Nexen Tire Corporation declined 2.9 per cent to KRW 438.5 billion (£253.9 million), the company reports. Gross profit rose 3.6 per cent compared with a year earlier to KRW 124.7 billion (£72.2 million) while operating profit was 12.1 per cent down at KRW 46.3 billion (£26.8 million). EBITDA was 3.1 per cent lower at KRW 71.9 billion (£41.6 million), with the margin stable at 16.4 per cent.
A news release from Bulgaria’s Ministry of Economy and Energy suggests that Nexen Tire intends to become the second Korean tyre maker with a manufacturing presence in the European Union. The Ministry reported that a meeting with a leading tyre maker took place during a visit to South Korea by Bulgaria’s Deputy Minister of Economy and Energy Krasin Dimitrov.
Nexen Tire has secured two further original equipment supply agreements in Europe. Starting in December, the Korean tyre’s rolling resistance optimised N’Blue HD is size 205/55R16 91V will be delivered to Skoda for fitment on the new Octavia, and before the end of the year Nexen will begin shipping the N’Blue HD to Volkswagen for the Polo.
Korean tyre manufacturer Nexen is to make the its IAA debut when it exhibits at the automobile trade fair from 10 to 22 September in Frankfurt, Germany. Nexen reports that it will present 26 products including six brand new products with the theme “Enjoy NEXEN, Dynamic Driving Partner” at Hall 4.0 Stand C23.
Nexen Tire’s second quarter results failed to live up to average analyst expectations. Although unit sales rose 17 per cent year-on-year, a ten per cent drop in average selling price compared with the second quarter of 2012 meant net sales revenue only increased 3.7 per cent to KRW 451.1 billion (£262.0 million) – 12.1 per cent lower than the consensus estimate of KRW 463.21 billion. Gross profit rose 4.6 per cent to KRW 125.1 billion (£72.7 million) and gross profit margin increased 0.2 per cent to 27.7 per cent.
The top job at Nexen Tire America Inc. will be taken over by David Sul following the resignation of Changrin Suk. The 25-year company veteran, who most recently held the head office position of senior managing director at Nexen Tire’s overseas business department, will begin as CEO of the North American operation on 30 September.
High performance cars are by definition a cut above the average family run-around. That means they’re far more demanding on their tyres. Consequently have to be more careful when it comes to choosing replacements, says Stapleton’s.
Nexen Tire has announced it will supply original equipment tyres to Mitsubishi’s Outlander Sport. A press release on the tyre maker’s Korean website states that supply of the N’Priz RH7 high performance tyre begins this month. In addition to domestic market sales, the US-produced Outlander Sport will be sold in Europe.
In the first quarter of 2013, Nexen Tire Corporation achieved net sales of KRW 432.9 (£252.5 million), the Korean tyre maker reports. Almost 85 per cent of sales were generated in the aftermarket, with North America by far the company’s largest single geographic region; North American sales declined 13.0 per cent year-on-year to KRW 106.6 billion (£62.2 million). Sales in Europe, Nexen’s second largest market, grew 19.2 per cent year-on-year to KRW 87.2 billion (£50.9 million), and domestic market sales increased 14.4 per cent over the first quarter of 2012 to KRW 56.4 million (£32.9 million). Sales in China, at KRW 8.8 billion (£5.1 million), were 11.0 per cent down on a year earlier and other region sales increased 10.4 per cent year-on-year to KRW 112.1 billion (£65.4 million). Original equipment sales accounted for 15.6 per cent of Nexen’s total and grew 21.5 per cent year-on-year to KRW 68.6 billion (£40.0 million).
Noting the present wide ranging diversity of fitments in the current 4×4/SUV market, Stapleton’s notes that the opportunities open to the retailer present a challenge in requiring a wide breadth of stock to meet increasingly specialised demand. While retailers can expect the usual range of premium brand tyres in this segment from the wholesaler, it says there has been a particular focus in this segment on providing a variety of lower-priced private brands.
Nexen Tire Canada has appointed Jeff Bullock national sales director, Tire Review reports. The tyre-maker said Bullock joins the company after more than 20 years of experience in the industry, including positions at "several top manufacturers and distributors." Nexen continued, "His experience and vision of the future will be a great addition to our sales team."
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.