In 2011 Continental engaged with Innoware, a software and web applications firm, to develop a bespoke online competitor-analysis pricing tool. The aim was to automate reporting across the UK, mainland Europe and South Africa. According to the company, pre-set reports and complex calculations are created in seconds for all key retail outlets, providing views at local, regional, and country level.
In the UK, the Freight Transport Association hails the recent Parliamentary debate as confirmation that fuel duty has now become a mainstream political issue, and welcomes the suggestion that the Chancellor George Osborne may be about to cancel the increase in fuel duty planned for New Year's Day.
"Motorway Service Areas owned or supplied by major oil companies continue to extort their customers by pricing fuel much higher than at their standard company-owned sites" said Brian Madderson, Petrol Retailers' Association (PRA) Chairman.
Recent data produced by Experian Catalist showed that Shell brand petrol purchased at a Motorway Service Area was 14 pence per litre (ppl) more expensive than Shell brand petrol purchased at one of their standard sites. Diesel was as much as 12ppl more. The gap between prices for Esso brand fuel was very similar.
Cooper Tire & Rubber Company has reported record net sales and operating profits in its third quarter 2012 financial results. According to the company, sales of US$1.1 billion (up 4 per cent) were a record. The company also reported record operating profit of $130 million, $82 million higher than in third quarter 2011 results and representing 11.8 per cent of net sales. Net income was also a significant improvement on last year’s $17 million, with the company posting a third quarter record of $74 million or $1.17 per share on a diluted basis.
ATS Euromaster has entered into network partnership agreements in mid-Wales and Northern Ireland; the first of their type to be established by the company. ATS will work in “close partnership” with Huw Lewis Tyres and Modern Tyre Service, of whom ATS-E states that they are well-respected independent tyre retailers which share ATS’ focus on quality, safety and customer service. ATS says the partnerships aim to provide local service to its fleet customers in towns and communities where there is currently no ATS Euromaster presence.
GiTi Tire has appointed Michael Kaletta as national Sales and Marketing manager for truck and bus tyres. Kaletta will be responsible for all aspects of the commercial vehicle tyre market, including the formulation and delivery of growth targets through a dedicated sales team. The appointment is designed to strengthen GiTi Tire’s German operation significantly, though the five members of the sales team already possess over 100 years of collective experience in the sector. Kaletta will report directly to Richard Lyons, managing director – GiTi Tire Germany, and play a key role in further establishing the profile of GiTi Tire’s leading brand, GT Radial as a “leading mid-tier proposition with an excellent price per kilometre delivered through a seamless buying experience”, GiTi Tire said.
With tyre demand said to be down between 2 and four per cent, financial analysts at Deutsche Bank confidently reported that the tyre companies under its coverage “should record strong results in the third quarter due to a still positive pricing environment”. Or in other words because manufacturers are said to be doing their best to maintain prices. And this is said to be coupled with a reported raw material tailwind.
Since the dissolution of its exclusive distribution agreement with the Maxxis brand, Grouptyre has continued to evolve, both in terms of the service offered by members and its brand strategy. While the wholesaler’s managing director, Karl Naylor said that it was “no longer in our customers’ interests for us to be over-dependent on one primary push brand”, the company has been particularly active in relation to its Evergreen brand, extending the Evergreen Performance Centre programme to retailers. In addition, the company has introduced the brands Landsail and Rapid, both of which are focussed on the end of the market particularly sensitive to economic pressure. As it has built the profile and image of Evergreen, manufactured by Jinyu Tire, these brands – also made in China respectively by the Sentaida and Shengtai Groups – have allowed Grouptyre members access to newer, less established margin brands simultaneously.
GiTi Tire has appointed Andrew Brady to the position of Product and Pricing analyst and Ashleigh Warren as European Marketing assistant. The newly filled positions will strengthen the company’s head office team, with both recruits assuming responsibilities across the relevant product portfolios in the company’s four main brands; GT Radial, Primewell, Runway and Dextero. Brady brings more than a decade’s worth of tyre industry experience with him, while Warren is new to the sector, having previously worked for a business software firm.
The Road Haulage Association has also applauded the news that the Office of Fair Trading have called for information on the UK petrol and diesel sector.
"Diesel accounts for over a third of a haulier's operating costs", said RHA Chief Executive Geoff Dunning. "Between June 2007 and June 2012, diesel prices have risen by 43 per cent; a rise which will no doubt have had a very significant depressing effect on the economy."
"The Office of Fair Trading’s (OFT) decision to look into petrol and diesel prices is a significant step forward for the Petrol Retailers' Association’s (PRA) campaign for a market study into anti-competitive pricing in the UK fuel market" said Brian Madderson, PRA Chairman.
Over 70 per cent of motorists are still completely unaware of the impending tyre labelling legislation and the fuel efficiency benefits associated with it. The figure comes from a survey of 3,000 UK motorists conducted by OnePoll and commissioned by tyre Chemical supplier Lanxess. It also shows that almost all UK motorists (99%) vastly underestimate the impact tyres have on their fuel bills, and that over half still prioritise upfront cost when buying their tyres. Less than 20% take fuel consumption and long term costs into consideration.
Analysts at DB Equity Research opine that the European tyre label will not lead to any material change of market share amongst tyre makers in the coming years. In its 27 August morning news, the Deutsche Bank team explained the workings of the label and added that they consider its introduction a move “in the right direction.” However, the analysts believe the regulation should favour premium tyre companies with a multi-brand strategy, and they noted that "some companies will be tempted to cheat to improve their results.” DB Equity Research also expects that from a range of, say, 500 tyres, every tyre company will succeed in having “at least a few AA rated tyres they will advertise.”
Oak Tyres has expanded into a new larger head office and warehousing complex in Haydock, Merseyside following recent growth. According to Oak’s finance director Andrew Burgess, the company’s 2010 accounts record annual sales of just over £30 million, a figure that has now grown to £50 million a year.
East Yorkshire-based haulier HB Holt & Sons has appointed ATS Euromaster tyre and tyre service provider for its fleet of 50 trucks and 74 trailers. The agreement will see Michelin group-manufactured Taurus tyres fitted, as wear dictates, backed up by 24/7 access to emergency roadside assistance.
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