(Akron/Tire Review) With advances in technology, materials and manufacturing, today’s radial truck and bus tires provide more performance, reliability and safety than ever before. Truck and bus tyre manufacturers design their tyres for multiple lives, meaning the tyres are designed to be retreaded. And every day, millions of retreaded truck and bus tyres are performing flawlessly all over the world in all types of weather and on all kinds of roads.
Although Goodyear’s earnings were roughly as expected Goodyear’s recent positive results contained some surprises, Deutsche Bank analysts have reported. Despite 4 per cent growth in unit sales and an 8 per cent increase in average transaction prices, Goodyear was only marginally profitable in its North American tyre division in the fourth quarter, say the analysts. “We have doubts about Goodyear Tires’ ability to cut costs, increase volume, or improve variable margins in this region. In fact, there was evidence that cost cutting is losing steam,” they said adding: “Our model suggests that first half EPS will be close to breakeven. Improvement in the second half requires significant ramp up of cost savings.”
The last issue of Tyres & Accessories carried an in-depth article analysing the future of passenger tyre retreading in Europe. Contrary to the current prevailing opinion, the RMA believes that the passenger retreading sector is far from dead. Indeed, the association believes the overall pessimistic view of the prospects for passenger retreading is based on the failure of the retreading industry to effectively explain the role and position that passenger retreads are capable of having as well as a misunderstanding of the kind of sales levels required by the retreading industry in order to create a viable business proposition for the UK’s remaining retreaders. This viewpoint, I believe, is perpetuated by ten key misconceptions, which I have characterised here as “The Ten Great Myths of Passenger Tyre Retreading”.
(Akron/Tire Review) In the US Yokohama Tire Corp will increase OTR tyre prices “across the board,” effective 1 April, the company announced. The tyre manufacturer’s OTR tyre line will increase by 3-8 per cent, and additional in-line adjustments will be made, it said. Detailed pricing information will be sent to dealers. Yokohama said the reasons for the increase include rising costs of resources, such as steel, fabric and petroleum-derived materials.
Goodyear’s Assurance played a key role Goodyear’s recent financial improvements, according to a report in the Akron Beacon journal. Goodyear first rolled out the products a year ago in an effort to generate excitement for its flagship brand.
(Akron/Tire Review) A report in the Detroit News says that SUV sales have dropped sharply as fuel prices in the US have continued to rise. The newspaper, citing a study by J.D. Power & Associates, said that full-size SUVs have been the hardest hit by the sales downturn. Sales of full-size SUVs were down 31 per cent in January and 21 per cent in February, according to the report.
Through February, sales of Chevy Suburbans were down 37.8 per cent, Hummer H2s were down 32.6 per cent, Ford Expedition sales fell 24.4 per cent and Toyota Sequoia sales were down 14.4 per cent, said the report. Still, some models showed increases, including the Nissan Armada (+33.5%), Dodge Durango (+17.3%), and the Cadillac Escalade ESV (+8.8%), the report noted. A Ford analyst quoted by the paper said, “Gas prices probably accelerated a trend already under way. The best days for those products (large SUVs) are behind us.”
Euro Car Parts has announced a new addition to its XTR alloy wheel family. The Sabre, complete with Hyper Silver Finish, is available in 15 inch to 18 inch sizes and joins the Jagged, Revolve, Phaze and Coast in the XTR alloy range (prices start from £233.95 for a 15 inch set to and £304.95 for 17 inch models). All XTR wheels are available as wheel and tyre packages, with a choice of rubber to suit all pockets. The price includes chrome valve caps, balancing and tyre fitting.
Pirelli & C SpA has said it will increase tyre prices in Italy by 5 per cent on 1 April, the AFX news agency has reported. According to the manufacturer, the price increases come in response to rises in raw material and energy prices.
Analysts, Goldman Sachs, have set Conti’s shares to ‘outperform.’ The “fair value” of the company’s shares is 70 euros, according to analysts, who expect the tyre manufacturer to improve its profit by 45 per cent in the next two years due to improvements in cost structures and its dominance in the fast growing ESC sector (electronic stability control). The analysts also report an improved performance by Conti in its tyre business and say that the manufacturer is not as dependent on raw material prices as its competitors. Profit per share is expected to reach 4.25 euros this year, increasing to 5.45 in 2006
The European Union Commission has said it is probing four car makers on suspicion that they restricted access to technical information required for vehicle maintenance in a way that may contravene EU competition law, Tire Review reports.
Cooper Tire & Rubber Co. has made a number of new appointments, including the promotion of Ed Reading to vice president of international sales and marketing, writes Tire Review. In his new role, Mr Reading will be responsible for coordinating sales and marketing strategies for all Cooper products sold outside the US, as well as export sales from the US.
In addition, Cooper named Matthew Moore as manager of programme pricing. Mr Moore will be responsible for determining prices on Cooper tyre brands. Finally, Chris Barbara was named sales training manager, and will be responsible for developing and facilitating training for Cooper’s dealers and sales force.
During last week’s Geneva Motor show Michelin is reported to have said that the situation surrounding raw materials is “very worrying” and rising prices will continue to place severe pressure on the company during 2005.
“This year, the environment for raw materials remains tense, which is causing strong pressure on prices, and as a consequence on our costs,” said research and development director Didier Miraton in Geneva.
“There is no situation of us having a shortage but the tension is very worrying,” he added.
Michelin has decided to raise prices by an average of five per cent in Europe until July 2005 to offset increased raw material costs. Miraton said he expected the situation to continue as mobility needs in Asia would drive demand, stressing that there was “a need to find ways to make better use of raw materials”.
India’s Apollo Tyres Ltd tyres has reduced its prices by a range of 2-4.5 per cent. The announcement follows Indian finance minister, P Chidambaram’s decision to reduce excise duty on tyres from 24 to 16 per cent. After MRF and Ceat cut their prices there was speculation that other large manufacturers would also pass the savings onto consumers. “The price cut is in the range of 2-4.5 per cent across products and various categories,” a company official said, declining to go into the specifics of the price reduction.After the Budget announcements, the excise duty on truck and bus tyres for the replacement market was reduced to 16 per cent. Truck and bus tyre accounted for over 70 per cent of the turnover of the tyre industry in value terms.
Goodyear’s European president Michael Roney has announced price increases and further cost cutting measure designed to tackle increasing raw material prices. Speaking to German daily newspaper, Die Welt, Mr Roney said that the American tyre giant is bound to grow in the European market, where it turned over 4.3 billion euros last year. There is still a major potential for sales in Europe, the newspaper quotes Mr Roney as saying.
On the US market there are many cheap tyre brands competing with premium products, whereas in Europe this is different, Goodyear’s European president continued: “The Europeans really focus on premium brand tyres and have strong bonds with these.” In addition, it is American customers that prefer all-season tyres when in Europe seasonal tyre business is very strong.
In the US, Goodyear Tire & Rubber has raised prices on its pre-cure tread stock and cushion gum by up to 6 per cent. The increases came into effect on 1 March, Tire Review has reported. The company said the increases were necessary due to the “increasing costs of raw material, higher energy charges and rising transportation costs.” Prices on the company’s Ultima brand of pre-cure tread stock increased by up to 8 per cent, while prices for strip and slab rubber were bumped up by up to 7 per cent, according to Tire Review.
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