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2009 Set to be Turbulent Year for Tyre Market

2009 is set to be a tumultuous, but “exciting” year for the UK tyre market. According to data supplied analysts at Plimsoll Publishing, UK tyre manufacturers and distributors need to be ready and prepared for a series of unique opportunities that will present themselves in the year ahead.

The overall tyre financial conditional of tyre manufacturers and distributors “is not in bad shape,” say Plimsoll. Sales growth is running at a little over 2.6 per cent, which is actually up on the previous year. However, it is not clear whether the latest data takes into account the full extent of the credit crunch. As the report says, “even the most bullish of companies will need to rethink for 2009.”

11th November 2008/by Tyrepress Editors

‘Pimp My Shopping Trolley’

Motorists with cash in their pockets have given chrome wheels the nod for the last decade, but in America these look-at-me vehicle accessories are losing favour with drivers pummelled by rising fuel and other costs. In an article published by USA Today, König Wheels sales manager Jim Fisher commented that the fashion for chrome wheels “might come back, but it’s going to be a while…..we’re selling something that people don’t need.”

6th November 2008/by Tyrepress Editors

UPDATE: Goodyear Sees Q3 Profits Fall

Despite making a significant operating loss of $19 million in the North American market – as reported on Tyrepress.com on 3 November – Goodyear has carded record sales in 2008’s third quarter, up 2 per cent to $5.2 billion. In addition, the company states that its revenue per tyre is up 8 per cent over Q3 2007 excluding the impact of foreign currency translation, a gain that reflects worldwide gains in pricing and product mix generated by the company’s strategy to focus on high-value-added tyres.

Chairman and CEO Robert J. Keegan said that the company’s “solid third quarter concludes a strong nine months of performance, reflecting the successful execution of our business strategies and continued strength in our international businesses.”

4th November 2008/by Tyrepress Editors

Starco GB Adds to Aftermarket Division

Starco GB Ltd has appointed Keith Slater to its newly formed aftermarket sales department. Starco GB Ltd, part of the pan-European Starco group of companies, is better known for supplying an extensive range of tyre and wheel assemblies to original equipment manufacturers.

Keith Slater commented: “We at Starco GB Ltd are very upbeat and enthusiastic about the future of the dedicated aftermarket sales department with our competitive pricing structure and ever increasing product portfolio we are in a fantastic position for rapid progression to achieve our goals.”

29th October 2008/by Tyrepress Editors

Micheldever Group Climbs the Sunday Times Corporate League Table

Micheldever, the UK’s largest independent tyre wholesaler, distributor and retailer, has jumped 49 places to 154th position in the annual Sunday Times HSBC Top Track 250 league table of the best performing mid-market private companies, after achieving annual sales total of more than £224 million in the last financial year, an increase of almost 33 per cent on the previous year’s performance. According to Micheldever, it is only tyre firm to appear in this year’s list.

21st October 2008/by Tyrepress Editors

‘Buy Now’ Option Added to Thompson Web Site

Cooper Tire & Rubber Co. has added a “Buy Now” feature to its Mickey Thompson website. The move will allow consumers “access to easy, one-click shopping, instant price and shipping cost comparisons, and a simple shopping-cart style check out that makes purchasing tyres and wheels quick, easy and fun,” Cooper said. According to Cooper, “when the “Buy Now” button is selected, a revolutionary search engine technology searches the top Internet sales locations for pricing, and links the user to the shopping cart for that unique part number.”

“The benefits to the consumer include eliminating the cumbersome and time-consuming process that is associated with shopping for a product online by utilising a system that identifies the product by its unique part number,” Cooper said. “The benefits to the internet retailer include premium positioning, measurable/trackable results, and premium level support, including advertising support through consumer print ads, web and banner ads, Google AdWords marketing, and cable television ads in select markets.” (Tire Review/Akron)

20th October 2008/by Tyrepress Editors

Blackcircles.com Partners With Unipart Automotive

Online tyre retailer Blackcircles has appointed Unipart Automotive as its preferred parts supplier. As part of the new partnership it will promote the Unipart brand and product range to its network enabling the garages to tap into better pricing on parts which can be passed on to customers. Revenue is reportedly up 40 per cent this year while visitors to its website are said to have increased by 55 per cent.

The partnership agreement also has benefits in terms of customer confidence, a key area for online businesses. Under the new deal, Unipart will conduct a 10-point quality check, on behalf of Blackcircles.com, for all garages within the network, which will provide a mark of excellence designed to create a new consumer confidence and encourage greater use of independent garages.

Mike Welch, managing director of Blackcircles.com, said: “In Unipart we are partnering with a proven and trusted name that will enable us to support our garage relationships across the UK at a crucial time for the industry. Block Exemption creates an excellent opportunity that will ultimately benefit consumers. We are confident that this new deal will increase consumer confidence and highlight the many benefits of using local independent garages to the general public whilst educating people about Block Exemption.”

Unipart Automotive marketing director, Wendy Williamson, commented: “By sourcing our service products, the garages can be more confident about the quality they are offering their customers. This will increase customer satisfaction, generating higher sales for the garages involved.”

According to the company, Blackcircles.com has developed the largest network of fitting outlets in the UK during the course of the last six years and is currently recruiting more garages to join its UK network.

15th October 2008/by Tyrepress Editors

Goodyear’s fleetHQ Sees Success in First Year

In order to strengthen its U.S. and Canadian service business, Goodyear Tire & Rubber Co. launched fleetHQ(SM) in February to fortify its dealer network with improved services and coverage. “It’s been a validated success,” said Charlie Walters, general manager of fleetHQ Solution Center. “We have more than 11,000 fleets and owner operators enrolled in the program, which provides roadside assistance, national tyre pricing, and centralized billing through local dealers.”

A core component of the program is the reduction of downtime through an emergency roadside service program – more than 1,500 dealers are ready with service 24/7, according to Goodyear. “With that type of coverage,” Walters added, “we can get our customers back up and running quickly. And we can help save them money in the process. There are no fees of any kind for calling our toll free number 1-877-4-Tires-Now.”

9th October 2008/by Tyrepress Editors

New MIDaS Interface Designed to Boost Online Retailing Efficiency

A new software module developed by Cam Systems for its MIDaS program is designed to help retailers improve the efficiency and accuracy of their online sales. The MIDaS tyre retail and wholesale stock management system now handles somewhere in the region of £140 million worth of product transactions, equating to more than 3 million tyre each year. Using the same system, Cam says it has responded to growing market demand by developing a B2C (business to consumer) solution for website stock, pricing and order processing functions.

Typically, website stock and pricing details are entered manually using a spreadsheet system, which is extremely time intensive, prone to inaccuracies and needs to be repeated on a regular basis as pricing and stock details constantly change. The MIDaS B2C module makes that process redundant as it is fully integrated with the Cameo operating system, which allows it to set up and export product and price data direct to the website. This is a vastly more efficient and accurate process than a paper-based system and gives retailers complete control of data which appears online.

2nd October 2008/by Tyrepress Editors

Goodyear Retail Closures Viewed Positively, Comment DB Analysts

A Deutsche Bank analyst report indicates that Goodyear’s decision to close 92 “underperforming” retail locations in the US is a good thing. “Overall, we view this announcement positively,” says the report, “as it demonstrates additional cost savings as GT (Goodyear).” The closure of the retail stores is expected to result in after-tax charges of US$40 million and generate savings of $9 million per annum. This level of savings, says Deutsche Bank, could potentially add $0.03 to $0.04 to its earning estimate.

2nd September 2008/by Tyrepress Editors

Tyresure Reduces TPMS Price

Tyresure has reduced the price of its “money saving tyre pressure monitoring systems,” which are designed to improve safety and reduce fuel use. The recommended retail price of the unit is now £179.99. According to the company, sales have soared since the product’s UK launch earlier this year. A company statement announcing the price decrease explained that “thousands of motorists are now driving with correctly inflated tyres” as a result of using the system.

2nd September 2008/by Tyrepress Editors

CTNA Takes Truck Tire Hike

Continental Tire North America will up the pricing on all of its OE and replacement medium truck tires as of Oct. 1. The increase of up to 10% will cover CTNA’s Continental, General, Semperit and private brand tires. (Tire Review/Akron)

21st August 2008/by Tyrepress Editors

Hidden [Auto]Gem

Product News, UK News

In the last few years Autogem Motor Concepts LLP has grown rapidly from a faltering supplier to an influential player in the tyre and workshop consumable business. The turning point came in September 2005 when the Invicta group of companies took over the reins at Autogem. Initially, the new owners embarked on the project with a team of just 10.

The first major move the new managing partners, brothers Prashant and Adit Chopra, made was to consolidate Invicta and Autogem’s existing four warehouses into one bespoke distribution centre in Park Royal, London. They have been in their current warehouse/offices since April 2006 and closed Autogem’s inefficient old Leeds telesales operation in July 2007, after winding down the business’s dependency on this location. Here, the staff of 50 was reduced to just two, with the rest taking redundancy. This rapid reduction in headcount could be seen as harsh, but from Autogem’s management’s perspective it just demonstrates how inefficient the company they took over had become.

24th July 2008/by Tyrepress Editors

Morgan Stanley ‘Double Downgrades’ Michelin

Financial analysts at Morgan Stanley have downgraded Michelin stock to “underweight” and predicted Michelin will make a profit warning when it announces its first half 2008 results on 30 July. “We are double-downgrading Michelin…This year’s sharp rise in raw material costs may be the immediate source of pressure on earnings, but we think the bigger risk going forward is slowing OE and replacement demand,” the analysts explained. Describing the premium tyre manufacturers’ pricing discipline as “remarkable,” the bank predicted pre-tax (EBIT) profit margins would still fall to 7.3 per cent, near the company’s historical average, in 2008.

Explaining the reason for their rating downgrade, the Morgan Stanley analysts suggested Michelin’s truck and speciality tyre segment strengths could be weakness in a tough market for vehicle makers: “With 50 per cent of [Michelin’s] revenues coming from truck and speciality tyres, Michelin’s fortunes are tied to the industrial cycle more than any other tyre company we cover globally.” In addition, according to the report, around 30 per cent of revenue and 20 per cent of Michelin’s profits are said to be generated in North America where recent tyre demand has been particularly weak.

22nd July 2008/by Tyrepress Editors

Pricing Clash Halts Korean Plant Production

GM Daewoo, the third largest auto manufacturer in South Korea, has released a statement to news sources saying that the company has stopped auto production at its Bupyeong manufacturing plant after OE tyre suppliers halted shipments to the factory. Hankook and Kumho, who between them provide over 85 per cent of the tyres fitted to vehicles at the GM Daewoo facility, have suspended supplies in a dispute over tyre prices.

The two tyre manufacturers have been requesting a hike in tyre prices of 12 per cent in the wake of soaring production costs. According to sources within the industry, GM Daewoo has agreed in theory to a price rise, but does not accept the figure placed on the rise by the manufacturers. However, Hankook’s spokesman has stated that “GM Daewoo refuses to negotiate and told us to withdraw the request.”

18th July 2008/by Tyrepress Editors