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CMA Launches Tyres, Government Price Programme in USA

The new products, unveiled this week at CMA’s new Memphis warehouse, include fuel-efficient medium truck radials and a new 57-inch OTR radial for mining service. Now available are the Double Coin FR605, FD405 and FT105, described as “ultra-premium fuel-efficient tyres available for steer, drive and trailer positions;” a new mixed service tyre in the Double Coin RR202, an ultra-premium five-rib highway service tire; and the Double Coin RR680 and low-profile RT600 regional all-position/steer tyres. The Double Coin REM-11, in size 3700R57, was developed, said CMA, for “severe mining and haulage applications.” The giant OTR line features heat and cut/chip resistant compounds, application specific patterns for improved traction and longer original tread life; and a durable casing for retreadability.

The net pricing programme, said CMA, “enables federal, state, and local government entities and municipalities to purchase high-quality Double Coin TBR and radial OTR products at net pricing” through CMA’s dealer network. “Many of our products have been purchased by school bus fleets, government vehicles and other municipalities for some time through the local dealer network,” notes Walt Weller, CMA vice president. “This program formally publishes a TBR and OTR schedule and contract number so that anyone who requires a published program can participate in utilizing Double Coin’s value-laden products.” (Tire Review/Akron)

12th June 2009/by Tyrepress Editors

Are We Witnessing a Conti/Schaeffler U-turn?

Inside sources recently told reporters that Schaeffler Group is considering unravelling its hostile takeover of Continental AG – offering itself up for reverse takeover by Conti. The automotive parts takeover-predator now finds itself pushed into the role of prey as it struggles to manage debts of 11 billion euros. As a result of the potential corporate role reversal, Continental could find itself well and truly back in the driving seat – but will the company be able to execute this move and at the same time exercise some poetic justice?

There is no question that Schaeffler desperately needs to save money. In the first quarter of 2009, the company’s Automotive division recorded a downturn of 33 per cent compared to the previous year, which is now said to have “stabilized” at 25 per cent below last year, while its Industrial division is down around 40 per cent. However, lost sales don’t just mean reduced income. With output not expected to return to 2008 levels for another four years, the company has announced that it has to cut German labour costs by 250 million euros (the equivalent of 4500 jobs). Schaeffler has already cut 5,000 jobs in other countries, but redundancies at home make the automotive supplier very unpopular with the only people who are now realistically likely to help – the state and federal governments.

27th May 2009/by Tyrepress Editors

Michelin 2Q Tyre Volumes Predicted to Be -18%

Assuming stable share, Michelin’s second quarter tyre sales volume is expected to be inline with analysts’ earlier estimates of a drop of 18 per cent. However, Michelin’s monthly tyre market data, which has become something of barometer in the current unstable market conditions, shows that the leading French tyre manufacture is performing better than analysts had expected. In an investor’s note entitled ‘Punctured but still rolling” Morgan Stanley described the company’s recent performance as “slightly better than our expectations, after adjusting for an average two fewer selling days across Europe.” Year-on-year growth rates remain negative, but the pace of the decline is considered to be “more on track to meet or exceed [forecasted] tyre sales to dealers.”

As a result of the fact that tyre prices are positively correlated with both volume and input costs, Morgan Stanley suggested manufacturers remain under pressure to cut prices: “Investors must prepare for a reasonable level of price ‘give back’ to struggling tyre dealers, distributors and consumers in this environment…We believe depressed volumes and the tailwinds from lower raw material that will materialize in the second half will continue to put at risk the pricing discipline – and the profitability – of the industry.”

20th May 2009/by Tyrepress Editors

It’s Time to Work ‘Hard and Smart’, says Titan’s Taylor

While overall sales declined 8.2 per cent to US$232.6 million during the first quarter of 2009, Titan International reports that its sales of agricultural sector products hit an all-time first quarter record. “Large farm tyres and wheels were selling well in the first quarter of 2009, along with Titan’s new super giant mining tyres,” commented Titan chairman and CEO Maurice M. Taylor Jr. upon the figures’ release. These record agricultural sales of $187.3 million represent an increase of almost eight per cent on the $173.5 million generated in the first quarter of last year.

30th April 2009/by Tyrepress Editors

Revolution Motorstore Releases Dare Razor Wheel

Revolution Motorstore is offering a new entry level wheel and tyre package. The Dare Racer is available in 15-inch only, but in practically all 4 stud fitments, covering all core Jap, tuner and modified cars. Pricing, as one might expect from Revolution, is super-sharp – with the wheels weighing in at just £369 including VAT for a full 4 wheel package with “high-performance tyres.”

30th April 2009/by Tyrepress Editors

Manbat & JCI Confirm Partnership Deal

Manbat, the UK’s leading battery distributor, and Johnson Controls Batteries Ltd (JCI) have announced a revised distribution agreement which takes effect immediately. Both companies have grown their businesses impressively in the last two decades and this formalised distribution agreement follows three years of particularly close cooperation. The contract, which was signed on 15 January 2009, is for an initial three-year term, but with the intention of maintaining the agreement on a rolling basis, reviewed annually.

From the early 2000s, JCI began the process of reducing the number of own label supply contracts it had inherited through its battery manufacturer acquisitions, to concentrate on its own brands and the supply of Original Equipment (OE) batteries for the automotive and commercial vehicle sectors. Manbat was the obvious partner through which to grow the aftermarket supply business for those two sectors for the Varta brand.

17th April 2009/by Tyrepress Editors

HiQ Banbury Gets £60,000 Face Lift

HiQ’s Banbury centre has invested £60,000 in a refurbishment programme. The Oxfordshire centre is the first of the franchise network’s 150 stores to boast British Touring Car Championship branding, to coincide with the company’s official sponsorship of Britain’s premier motor racing series.

HiQ is the official sponsor of the British Touring Car Championship and the Banbury centre will aim to bring the excitement and passion of the motor racing series onto its forecourt. The new Banbury concept has been developed on the back of an 18 month study looking at consumer attitudes to fast fit services.

17th April 2009/by Tyrepress Editors

Kwik-Fit Offering a SMART Solution to Dents and Scratches

A good set of tyres can perhaps minimise the risk of accumulating dents, scratched bumpers or scuffed alloy wheels, but most motorists are unable to avoid ‘battle damage’ entirely. To take care of these inevitable dings and scratches, Kwik-Fit Fleet is expanding its one-stop shop service portfolio through the launch of a SMART (Small to Medium Area Repair Technology) service. At present this facility is being trialled at six Kwik-Fit locations – and the company believes it is the first time a fast-fit company has moved into offering SMART repairs.

16th April 2009/by Tyrepress Editors

Kwik-Fit Fleet Trialling SMART Repair Service

Kwik-Fit Fleet may soon be adding SMART (Small to Medium Area Repair Technology) repairs to its service offering. The leading fast fit company recently embarked on a trial offering of the service at six locations. It is reportedly the first time that a fast-fit company has moved into offering SMART repairs.

The service will be offered on a menu-driven pricing policy, which means repairs are cheaper than using a traditional bodyshop, at centres in Edinburgh, Birmingham, St Helens, Telford and Slough with a mobile service available in London. Prices start at £45 for paintless dent removal on dents less than 75mm wide, for scuffs, chips and scratches less than 200mm wide and for repairs to holes less than 50mm and scratches less than 150mm wide on trim, velour and leather. Multi-repair discounts are also available.

16th April 2009/by Tyrepress Editors

Tyre Market in Line for a Sell-in Bounce

Market analysts are predicting tyre industry sell-in sales volumes will improve sharply in the second quarter of 2009. Morgan Stanley experts explained in an investor’s note issued on 9 April that production cuts of between 40 and 60 per cent in OE and 10 to 40 per cent in replacement tyre production in January and February were “far more draconian than anticipated,” but nonetheless “deliberate and forthright” action. “We estimate Michelin’s sell-in tyre volume through the first two months of the year has declined approximately 20 per cent, assuming constant market share. Simply put, we believe this pace of volume decline is not sustainable,” the analysts commented.

The theory is that dealers that de-stocked tyres rather than purchase additional products at the beginning of 2009 are currently, or will soon, run low on inventory and therefore tyre factories must start running again. “We forecast Michelin tyre volume down 6.6 per cent for the full year, implying rest-of-year volumes down 3.9 per cent. At a minimum, we expect the extraordinary pace of volume decline to diminish sharply and soon.”

9th April 2009/by Tyrepress Editors

When is a Price Cut Not a Price Cut?

International News

When is a price cut not a price cut? Answer: when international tyre imports and global exchange rates are involved. This month a number of Chinese tyre factories lowered their gate prices in response to the recent easing of raw material costs. Combined with decreases in shipping costs, you’d think this would result in cheaper tyres for mature markets. However, according to industry sources, if the mature market you had in mind was the UK – or most of Europe for that matter – you would be wrong.

Aeolus Tyres, for example, apparently became the first tyre maker to openly cut its rates, saying it was aiming to send a clear signal that as a “runner-up among major tyre brands,” it is taking the lead in terms of pricing. Clearly the idea here was for the economy tyre producer to steal a march on the premium tyre manufacturers that are fighting hard not to cut product prices, despite market analysts’ predictions that the days of price increases are over and the opposite is likely, and take advantage of raw material price stabilisation.

4th March 2009/by Tyrepress Editors

Chinese Tyre Manufacturers Cut Gate Prices

A number of Chinese tyre factories have lowered their gate prices in response to the recent easing of raw material costs. Aeolus Tyres, for example, is apparently the first tyre maker to openly do so, and says it is aiming to send a clear signal that as a “runner-up among major tyre brands,” it is taking the lead in terms of pricing. However, as is the case with most Chinese tyre purchases, the fact that transactions are calculated in US dollars means pound prices are in fact higher than they were 12 months ago. Industry sources have also linked the Triangle and Infinity brands with factory gate price cuts that are also negated by the weak pound. While the euro has been fairing better against the dollar, a similar effect is understood to place taking place on the continent.

Speaking on behalf of Aeolus Tyres in Europe, Heuver Tyrewholesale’s Bertus Heuver commented: “Aeolus is one of China’s largest tyre manufacturers. Identifying trends and developing tyres in response to those trends is their core business. This is partly the basis of their success in Europe and why this runner-up has quickly become a reliable and attractive alternative to name brands… Aeolus sold more than 250,000 new tyres in Europe in 2008. We aim to conquer a market share in the most important segments in Europe of at least 3 per cent in the standard sizes…We expect that many business owners will consider Aeolus when making their decisions due to its combination of favourable prices, selection and quality.”

25th February 2009/by Tyrepress Editors

American Pacific to Market Pegasus PCR Tyre Brand in Europe

American Pacific Industries (API) is preparing to introduce its Pegasus passenger car tyre brand into the European market in the second quarter of 2009. The range, which will be available in a range of 14 to 24-inch sizes will be distributed exclusive in the EC countries by InterSprint. API told Tyres & Accessories that Pegasus is the European version of it Spector tyre programme, which has been re-engineered for the European market.

According to company literature, API has built its name on developing “first class American engineered, Chinese manufactured products with a reputation for consistent quality and good value.” API says it is actively seeking partners “in most regions of the world.”

18th February 2009/by Tyrepress Editors

Apollo Tyres Owned Zimbabwean Fast Fit, Retreader Restructures

Zimbabwe’s National Tyre Services (NTS) is in the process of finalising a strategic restructuring exercise to rationalise its operations. Dunlop Group (Dunlop Zimbabwe, owned by Apollo Tyres, is a major shareholder in NTS) managing director Kennedy Mandevani, recently appointed to oversee operations at the distributor and retreader, said the exercise would also increase the company’s operational efficiencies.

“Given the trading environment, the exercise brings NTS and Dunlop Zimbabwe closer to each other in order to deliver increased synergistic benefits to all stakeholders,” Mandevani said. “The right-sizing and restructuring will see a more flexible and customer focused entity poised to take advantage of current and future opportunities.” Mr. Mandevani added that NTS has maintained a strong presence in key geographical locations in order to maintain its market share.

27th January 2009/by Tyrepress Editors

Tyre Producers Now Paying for BR Monthly

A number of tyre makers have reportedly opted to settle their Asian butadiene rubber (BR) contracts on a monthly basis amidst weak demand causing a volatile pricing environment. According to a news report published on icis.com, BR contracts in Asia are usually settled on a quarterly basis. “BR January spot prices have plunged to around $1,100/tonne (€836/tonne) CFR (cost and freight) Asia, down by more than 70 per cent from its peak of $4,000/tonne CFR Asia in the fourth quarter last year,” the website reported.

“By April, there will be a clearer price direction but certainly in the first quarter of this year, prices are expected to fall further to around or below $1,000/tonne CFR Asia,” the website quoted one Indian tyre manufacturer as saying.

14th January 2009/by Tyrepress Editors