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Jules Crawford is looking forward to a clearer picture ahead after winning a brand new LCD TV courtesy of Hankook. Crawford who lives in Downton won the 40-inch TV as part of a summer promotion from the tyre giant which is also offering motorists a free tyre check.
“I’m thrilled winning the television,’’ said Jules who collected her prize from Downton Tyre and Autocare. “It was a real surprise to find I had been picked out after I had my tyres checked.’’
The Competition Commission of India (CCI) has suggested that there may be an issue of price fixing within the Indian tyre industry.
According to a study carried out at the Jawaharlal Nehru University and commissioned by the CCI, certain companies have enjoyed similar sales realisation with “widely differing profit rates.”
The second annual Eurasia Lastik & Jant Show has been announced for 23 – 26 April 2009 at the CNR Expo Centre, Istanbul, and is open for exhibitor applications.
The tyre, rim, battery and service equipment fair provides an excellent platform for manufacturers and distributors wishing to showcase products in one of the world’s fastest-growing automotive industries, while the exhibition promises to provide the opportunity for the development of new markets for visitors and exhibitors alike. With 64,000 visitors from 14 countries, 170 brands and 120 exhibitors present, the show looks to be a must for all with an eye on the Eurasian market.
Independent testing organisation TÜV Sud has shown that Michelin’s Energy Saver tyres lend motorists considerable savings over competitors’ brands. The Energy Saver proved to have a considerable advantage over rivals in a direct comparison in terms of longevity and fuel consumption; on average, the tyre cost £8.12 less per 1,000 miles in the 205/55R16V size category, and £5.58 less in the 195/65R15H section.
The tests involved running the tyres on identical cars for more than 14,000kms. To ensure fairness, the tyres and drivers were rotated on the vehicles, discounting the role played by these different variables. Earlier results from TÜV Sud tests had shown the tyre to be among the best in terms of wet braking performance, in addition to their money-saving properties.
Hofmann Megaplan has recently made two additions to its field support team.
Rob Tomkins has joined in the capacity of Training & Technical Support, carrying out installation and training to customers to an advanced level. He has spent nine years in the tyre industry, having previously been a tyre fitter and progressing to Branch Manager with Just Tyres.
During the recent Reifen Essen exhibition Tyres & Accessories met with Hankook vice president and Hankook Tire Europe GmbH chief operating officer, Seung Do Jin; along with European vice president sales and marketing, Hee Se Ahn. The meeting followed some particularly impressive full-year results that saw the company buck the trend (compared with similar businesses) and post a market leading profit margin of 8.1 per cent. It also followed a particularly impressive result in the recent Auto Motor und Sport tyre test. The result? Hankook is gearing up to announce some big wins in the European OE business, which signal the company’s intentions for future growth.
Asked what led to the company’s particularly impressive first quarter sales, Mr Jin explained that one reason is they came “as a result of becoming a marketing driven company.” European sales growth is particularly driven by sales in the UHP segment, he added, and according to Mr Jin, the leading car manufacturers based in Germany continue to drive these trends. So, with Hankook’s Dunaujvaros, Hungary production plant currently producing around 4.5 million passenger car tyres a year (15,000/day), the South Korean-based manufacturer is increasingly ready to go up a gear and carve out its place in the European OE business.
At this point it is worth pointing out Hankook’s recent success in securing some pretty high profile OE contracts with volume manufacturers such as Volkswagen. The word in Essen was that Hankook is very close to sealing an OE contract with Audi, a deal Hankook “is convinced” will be completed by the end of 2008. This would see the South Korean manufacturer supply both the A3 and A6 models in Germany and the A4 and A6 models in China. The contract would involve supplying 16, 17 and 18-inch tyres in “relatively small” quantities to begin with. Hankook is also said to be in discussions with BMW and Mercedes (who the company already supplies spare tyres to), not to mention Toyota.
European proving ground?
Coming back to Mr Jin’s earlier comment that Hankook’s positive results at least partly come down to its development into a more marketing aware company, rumour has it that Mercedes actually approached the South Korean company with reference to an OE deal on the S-Class, following Hankook’s impressive Auto Motor und Sport tyre test win.
With the market (and various proposed pieces of legislation) increasingly focussing on rolling resistance and fuel economy, research and development is as important as ever for Hankook. The company’s particular attention on market-focused R&D is demonstrated in its increased use of European testing facilities – including sites in Vienna, Austria and Barcelona, Spain. Mr Jin explained that Hankook has invested a “huge” amount of money in gaining the exclusive use of a new specially made handling circuit all-year round. Sooner or later this policy would result in “our own proving ground.” Mr Jin hinted.
Seung Do Jin, himself a former Hankook UK managing director, reserved particular praise for Hankook UK’s growth under the leadership of Richard Page, and the rapid development of Hankook’s market position in the UK truck tyre segment. Following the launch of four new truck tyres at April’s CV show (including one winter fitment); and two more in Essen, Hankook is experiencing something of a rapid ascendancy in this particular area. However, with more ‘economically competitive’ products being imported into the UK than ever, the obvious question is how does Hankook feel about an influx of products competing on price?
“At the moment I am not worried about the Chinese catching us up. There is already a technical knowledge gap. We invest 5 per cent per year in research and development, so we can learn faster than they can follow,” Mr Jin answered. So does this mean Hankook is likely to follow its construction of a passenger car tyre facility in Hungary with European truck and bus capacity?
According to Mr Jin it all depends on the market situation. However, he did point out that, despite the fact that production costs are up, there is still space on the Hungarian PCR production site. And therefore there is always the option of adding truck and bus tyre capacity “in a few years time.”
Following reports on Friday that Goodyear is planning to build a new plant in Dalian, China, T&A can confirm that plans are indeed afoot for a new facility, though Ron Castro, Director of Communications at the company, could not disclose plant capacity figures and forecasts:
“The new factory will build both consumer (passenger) and commercial (MRT) tyres. In fact it will be the first time we will manufacture commercial tyres in China, allowing us to grow our business in the largest commercial vehicle market in the world… The production will mainly be for domestic demand, while a portion will be exported mainly within Asia Pacific… In China, both in the current and future facility, we cater to both replacement and OE passenger markets.”
China’s largest surface coal mine, China Coal Pingshuo, has signed a three-year renewable contract with Michelin. According to an official statement released by the tyre manufacturer, the deal sees the company enter into an agreement to provide “a new kind of service.”
China Coal Pingshuo has contracted Michelin to provide and maintain 53/80R63 tyres for the Komatsu 930E trucks that it operates in the mine. The leader in the Chinese market for giant 63-inch tyres, Michelin had previously signed a tyre supply contract with Pingshuo in May 2007. In May 2008, the same customer chose Michelin as its 2007 Supplier of the Year from a list of 186 companies.
Bridgestone Corp is expected to announced a sharp fall in group operating profits as a result of rising rubber prices. According to the Nihon Keizai Shimbun daily financial newspaper, Bridgestone could announce a fall of up to 26 per cent in its operating profits compared with the last financial year.
New sources now expect Bridgestone’s group operating profit for the year ending 31 December to fall to about 185 billion yen ($1.74 billion), down from the company’s initial estimate of 195 billion yen. Thomson Reuters estimates put the analyst consensus forecast for Bridgestone’s operating profit this year at about 189 billion yen.
Continental AG has announced that it will increase its European passenger car and light truck tyre prices (across of all brands) by 5 per cent. According to a company statement, the price hike comes in response to offset rising raw materials and energy costs and will take effect on 1 October. Continental increased prices by between 3 and 4 per cent in June.
In the UK, Continental Tyre Group will be increasing its prices a month earlier on 1 September, a move the company describes as being in line with the UK market strategy. The UK price rise will be in line with the wider European increase – 5 per cent across all passenger, van and 4×4 tyres and all Continental group brands. Continental is reportedly in the process of notifying customers this week.
Continental AG has confirmed it has had “one brief conversation” about a possible engagement by Schaeffler-Group. Now the tyre and automotive supplier is said to be waiting for Schaeffler to substantiate its plans, before the management board of Continental evaluates these. The initial talks took place on Friday (11 July) afternoon. According to Continental AG, no further conversations took place.
The official statement appears to confirm a Financial Times (FT) report that Schaeffler had approached Continental about a takeover which could value Europe’s second biggest tyre company at more than 10 billion euros (5.8 billion). FT reports that Schaeffler generates 9 billion euros in revenues compared with Conti’s 26 billion euros.
Herzogenaurach, Germany-based Schaeffler is apparently aiming to take Continental private. One report, in the German daily Frankfurter Allgemeine Zeitung, said the company would consider spinning off the tyre business to help finance the transaction. However, a Continental spokesperson was swift to respond by saying the Hannover-based company would fight any hostile takeover: “In principle, our stand is that we have no reservations against investors who support our long-term strategy and our business policy and above all do not intend to break up Continental…Those who might want to launch a hostile takeover would need all the luck available because we will fight against it.”
Continental has promoted Phil Scanlan and Tom Whittaker into new roles as European sales director and sales manager – Car Fleets respectively.
Phil Scanlan has moved into the European sales director role responsible for Kwik Fit account after a number of years as fleet sales manager. His key role is managing the Kwik Fit account for Continental across Europe. In the coming months he will be working with Kwik Fit to maximise the new opportunities in supply chain through their new national distribution centre. The European sales director role is based in the UK and reports into the Hanover-based new distribution business unit.
Forbes magazine has bestowed the honour of being named one of the Reputation Institute’s most respected American companies upon the Goodyear Tire & Rubber Company. Goodyear is 16th on the publication’s list, details of which can be found on the publication’s website.
The RI’s criteria for ranking include the organisation’s “seven dimensions of reputation”, which comprise products/services, innovation, workplace, citizenship, governance, leadership and performance. The ratings were generated by the RI’s Global Pulse consumer opinion survey, while the company’s score of 76.0 shows an impressive 7.54 increase on 2007’s score. Goodyear is the sole representative of the tyre manufacturing industry on the list.
Federal has secured its sponsorship of this year’s Top Drift competition, giving its name to the trophy. The Federal Cup is one of drift racing’s premier contests, and is held on the West Coast of the USA. This is the third consecutive year in which Federal is the contest’s key sponsor, and the company has entered into the spirit of the exciting contest, in which drivers are judged on their ability to handle high-speed, long-distance slides around the racetrack.
Round Three of the Championship will take place towards the end of September and represents the beginning of the back straight of the contest in which Federal’s US dealer City Tires continues to service 13 of the 16 top drivers.
An investigation into the explosion at the Goodyear chemical plant in Houston last month, which killed employee Gloria McInnis, has begun. While her death has been ruled accidental, The US Chemical Safety and Hazard Investigation Board has decided to launch its own enquiry alongside the company’s own probe.
Goodyear is cooperating fully with the investigation, having hosted the CSB since Tuesday. The CSB spokesman Daniel Horowitz stated that they had interviewed witnesses, who confirmed that the accident was caused by the over-pressurisation of a heat exchanger during maintenance, and requested a number of documents from Goodyear. Meanwhile, Goodyear spokesman Scott Baughman released a statement saying that the company had been in touch with the CSB since the day of the fatal accident.
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