Vredestein Introduces New Run-Flat Sizes In USA
(Akron/Tyre Review) Vredestein North America has introduced the new run-flat versions of its Vredestein Quatrac 3 and Wintrac Xtreme lines.
North America
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BFS And Pirelli Hike North American Prices
Product NewsBridgestone/Firestone North American Tire and Bridgestone/Firestone Canada are increasing prices on all Bridgestone, Firestone, Fuzion and associate brand tyre lines by up to 4 per cent.
CMA Hires Agency, Begins US Double Coin Brand Push
Product News(Akron/Tire Review) China Manufacturers Alliance has hired Chicago’s Fathom Communications as its communications and marketing agency for North America. The tyre company and agency announced that CMA, the North American marketing arm of Shanghai Tyre & Rubber (Group) Co., is working on a new program to increase consumer and user awareness of the company’s Double Coin brand, and its campaign will leverage advertising, sales promotion, online marketing, web design and direct marketing.
Aaron Murphy, CMA vice president, said, “We have worked very hard to develop a comprehensive network of high-quality dealers and are now ready to create a clear, distinct brand image for Double Coin with both trade and consumer audiences. Fathom has demonstrated an in-depth understanding of our vision, and we are looking forward to working with them to meet our marketing objectives.”
New Process Improvement Chief Named by Cooper
Product News(Akron/Tire Review) Cooper Tire & Rubber Co. appointed Jeff Endicott as its new process improvement director, where he will oversee quality improvement, cost control and waste reduction for Cooper’s North America plants.
Most recently, Endicott served as technical director of the Cooper/Kenda Tire joint venture manufacturing facility in Kunshan, China.
Continued OE Sales Growth in Europe
Product NewsAccording to Michelin, the European OE car and light truck tyre market rose by 11 per cent in August compared with the same month of 2006. In contrast, the market in North America contracted by 3 per cent. Sales of replacement car and light truck tyres remained level in Europe during the month, but increased 1.7 per cent in North America.
Year to date, Europe’s OE car and light truck tyre market went up 4.3 per cent from the same period a year earlier, while OE sales in North America were punctuated by a 2.6 per cent decline. Replacement tyre sales were up 1.2 per cent in Europe and 2.1 per cent in North America during the same period.
In Europe OE truck tyre sales jumped 20 per cent in August, claimed Michelin, while across the Atlantic sales were a massive 37 per cent down. The replacement truck tyre market was far steadier, with a 2.4 per cent increase reported in Europe and a 0.2 per cent drop in North America.
China in the firing line
Product News(Rubber Asia) A number of China’s tyre makers are presently having a tough time in the US, but protectionist sentiments may spread to Europe too. While China’s export pricing has much to do with this, China has recently moved to reduce the export incentives that had become such a bone of contention in the West. But the rancour felt particularly in the US goes further and deeper than this.
Some of the current animosities have as much to do with culture as they have with conditioning. The China of today is a young and resourceful economy, whereas its large export markets in North America and Europe are, for the most part, mature economies where the twin burdens of regulation and social protection weigh much more heavily. That is why China’s freebooting ways in particular are causing tensions.
CMA Hires Agency, Begins Double Coin Brand Push
Product News(Akron/Tire Review) China Manufacturers Alliance has hired Chicago’s Fathom Communications as it communications and marketing agency for North America. The tyre company and agency announced that CMA, the North American marketing arm of Shanghai Tyre & Rubber (Group) Co., is working on a new program to increase consumer and user awareness of the company’s Double Coin brand, and its campaign will leverage advertising, sales promotion, online marketing, Web design and direct marketing.
Analysts: Goodyear Poised for Growth
Product NewsGoodyear shares have overcorrected “amid confusion over its second quarter performance and concerns about the slowing US economy.” That’s the view of analysts at Deutsche Bank who predict that “the current low valuation and low expectations present a compelling opportunity.”
The analyst’s report explained that Goodyear’s EBIT margins have been that of a somewhat schizophrenic company; achieving segment pre-tax margins approaching 11 per cent outside of North America but less than 1 per cent within North America.
Bush to Promote PCL Brand Name in North America
Product NewsThat’s Eric Bush – Pneumatic Components Ltd’s new North America Regional Manager, Tire Gauge (USA and Canada). Recently recruited by PCL, the leading international manufacturer and supplier of tyre inflation equipment, to build brand awareness within the US and Canadian markets, Eric will be based in Virginia and is now in the process of developing a sales & distribution service for PCL throughout North America.
Eric graduated from Virginia Tech in 1998 with a degree in Marketing Management. He began his career as a Regional Sales Manager for Ingersoll-Rand’s Tool & Hoist Division, before working in Alabama for a tool distributor, Tool-Smith Company. More recently Eric was in Atlas Copco’s Tool Division – Motor Vehicle Industry, before joining PCL.
Conti Tyre on M-B C-Class for Driving Events
Product News(Akron/Tire Review) Continental AG’s ContiSportContact 3 has been named the “official tyre” of Mercedes-Benz USA’s C-Drive national ride-and-drive series, featuring the automaker’s redesigned C-Class sedan. The ride-and-drive events began last month and continue through October, hitting major cities like New York, Washington, Atlanta, Miami and Dallas.
“We are very pleased to be a part of the Mercedes-Benz C-Drive series,” said Ed Marohn, director of automotive aftermarket sales, Continental Tire North America. “The ContiSportContact 3 is our premier performance tyre, and is a perfect fit with the sporty, agile performance of the Mercedes C-Class.”
Rejection of TPMS Challenge Has Implications
Product News(Akron/Tire Review) It was a challenge that had to be made, but at least for now, a U.S. Court of Appeals ruling in mid-June regarding NHTSA’s rule on tire pressure monitoring systems will stand as originally written. The court ruled the petitioning parties – four tire companies, TIA and consumer watchdog Public Citizen – failed to establish their standing in the dispute.
The court, however, made no comment relative to the merits of their argument. The reaction from the tire industry and the companies that challenged NHTSA’s “final rule” on TREAD Act-mandated TPMS is predictable. “We are still studying the decision,” says a Goodyear spokesman. Goodyear, Bridgestone/Firestone, Cooper, Pirelli North America, the Tire Industry Association (TIA) and consumer group Public Citizen all challenged the NHTSA standard requiring factory-installed TPMS to notify drivers if tire pressure drops 25% below carmaker-set tire inflation pressures.
Goodyear’s comments are typical of the reactions from the other plaintiffs. A spokesperson for Cooper says that they are evaluating their options, and added, “We still believe that consumer safety would be enhanced if this rule was changed.” The other members of the challenge either didn’t issue a statement or were waiting for the next step in the process.
Bridgestone OE for New Hybrid Lexus in US
Product NewsBridgestone Turanza EL42 tyres have been selected by Lexus as OE for North American models of the company’s all-new LS 600h L luxury hybrid sedan. The specific tyre fitted as one of the options to the world’s first full V8, all-wheel-drive hybrid vehicle is the all-season Turanza EL42 in size P245/45R19 98V, a tyre Bridgestone Firestone North America Tire believes will deliver the sleek styling, low noise and outstanding performance in dry and wet conditions prerequisite on a vehicle that has a US market starting price in excess of $100,000.
The 2008 Lexus LS 600h L powertrain combines a 5.0-litre V8 petrol engine with two powerful electric motors that reduce emissions by 70 per cent compared with a vehicle fitted with a conventional engine – earning it a Super Ultra-Low Emission Vehicle (SULEV) rating. “Bridgestone Firestone is proud to support vehicles that minimise fuel use and environmental impact,” said Michael Martini, BFNAT president, Consumer OE Tire Sales.
Michelin: European Tyre Volumes Strong in July
Product NewsPassenger tyre demand increased by 7 per cent in Europe and by 9 per cent in North America, mostly driven by OE demand of +11 per cent and +21 per cent respectively. According to a Deutsche Bank report, July truck tyre demand remained strong in Europe, growing 9 per cent (a positive trend confirmed by truck OEMs who are trying to secure tyre deliveries for 2008) and in Brazil, where volumes rocketed 23 per cent. However, truck tyre demand remains extremely weak in North America (down 13 per cent). According to the analysts this was driven by the very weak OE – down 36 per cent – manufacturers had expected. However, overall July was reportedly a strong month especially for European companies.
Goodyear Ordered to Pay US$15 Million in Accident Ruling
Product NewsA woman in the US state of South Carolina has been awarded $15 million after a federal jury concluded that Goodyear Dunlop Tires North America was responsible for the accident that left her with severe brain damage. After deliberating for 15 hours the jury returned with the decision that the tyre fitted to the motorcycle on which Michigan woman Trish McCloud was riding as pillion in May 2002 contained a defect that caused it to deflate. The motorcycle flipped and crashed, resulting in Ms McCloud striking her head on the footpath with so great a force that her helmet was not sufficient to prevent serious brain injury. The driver of the motorcycle was not seriously injured.
“The jury agreed with us that the tyre was made with a defect that caused it to fail prematurely,” stated one of Ms McCloud’s attorneys, Randy James. “Goodyear Dunlop refused to take responsibility for this tragedy and, instead, tried to blame others for its defective tyre.” Goodyear spokesman Scott Bachman said the company feels for the McCloud family but believes the accident resulted from a combination of the tyre being insufficiently inflated and too much weight being placed upon the motorcycle. He added that Goodyear is reviewing the verdict and is yet to decide its next course of action.
Special: China – Tyre market without equal
Product NewsSince November 2004, when Tyres & Accessories introduced China as “a market emerging from the haze”, the country and its tyre business has continued to develop at a dramatic speed. This is not only because Chinese tyre manufacturers have turned their attention towards European markets but also because Western manufacturers are pushing forward into China. This is where they want to produce tyres that are then sold either domestically or on export markets in Europe or North America. Today, China and the Chinese tyre market is no longer hiding in the haze but basking in bright sunlight. In China alone about 330 million tyres are produced annually, 235 million of which are radial tyres, and of this 180 million are passenger and light truck radials. And it goes without saying that the Chinese tyre market is bound to grow.
The growth of the Chinese tyre market is first of all a growth of the international tyre majors. It is some time since these companies began to carve out their territories in China. In doing so they have benefited from their superior brands, technologies and distribution structures. And often they have deeper pockets than most of their Chinese competitors, who cannot all keep up. The Chinese tyre market stands at the threshold of full integration into global economic structures.
With this new edition of our bilingual supplement on the Chinese tyre market the two sister publications Tyres & Accessories and Neue Reifenzeitung are again taking a close look at what’s taking place behind the Chinese wall.
The bilingual supplement “China – Tyre market without equal“ can be downloaded as a PDF file by clicking here.
