B&J Rocket has developed a new online shop. As of November 2008 selected articles from B&J’s wide range will be available to everyone via www.bj-rocket.com. These include items for tyre repair, carbide tools as well as products for tyre shops and service stations.
A survey conducted by insurance firm RBC and researcher Ipsos Reid shows that a little over half of Canadian motorists put snow tyres on their cars, despite the country’s snowy winter months. Feedback showed that more than half of those who do not use the specialist tyres do not due to the additional costs involved.
Francois Boulanger, president and CEO of RBC General Insurance Company, stated on the release of the information, “Installing winter tires should be a critical safety measure for all Canadian drivers. Canadians need to think of it as an investment in their family’s safety.”
China Automotive Systems, a power steering components and systems supplier in China, has its first purchase order for power steering gears from a global automotive manufacturer headquartered in North America, says Aftermarket News. This first purchase order is part of a larger agreement to supply power steering gears to this automotive manufacturer.
This agreement represents a major milestone for the company, said CEO Qizhou Wu, as it is the first contract for China Automotive Systems in the North American original equipment manufacturer market. These power steering gears are intended for one model of a well-known automobile brand, according to the company.
According to the news website wenatcheeworld.com, a site that calls itself the ‘fiercely independent voice of North Central Washington’, American Tire Corporation has signed a $960,000 purchase agreement with the Port of Ephrata that could bring 300 new jobs to the region. This deal, says the site, will provide ATC with 96 acres at the port’s industrial site to build an OTR tyre manufacturing facility. According to port manager Mike Wren, the port is currently attempting to secure $5.5 million for infrastructure improvements to this and other property to help convince the tyre company and others to build at the port’s industrial site. The funds are already trickling in; on November 6 the Ephrata City Council, despite facing a tough budget year, pledged $100,000 to the project, said Wes Crago, Ephrata city manager.
Canadian Tire has announced that it will open two experimental stores that will push the boundaries of which products a tyre retailer chooses to stock. The “smart store” concept will be tested in new locations in Welland (Niagra) and Orleans (Ottawa), both of which are due to open in the middle of November. Newly available products will include foodstuff, such as bread and milk, though many other product lines are planned. The idea is not without precedent; Canadian Tire stores already sell sporting goods, household appliances, gardening products and clothing and footwear, in addition to snack foods and cleaning products.
Despite the country’s tendency towards cold weather, motorists in the Ukraine have been advised by a Russian politician that one way of averting financial catastrophe is to not replace worn winter tyres. Irina Khakamada, quoted by the Unian news agency, gave this advice when talking about measures citizens can take to the country’s current economic crisis, measures that also include not buying currency or transferring money into cash.
The leading e-Commerce tyre retailer in Europe, Delticom, has announced that it is to merge its current car fleet business with the company’s buff new online portal. The change means that trader fleet owners can now purchase tyres through user-customised settings at the e-tailer’s online presence, www.flotten24.de.
The site will allow any user wishing to buy tyres from Flotten24.de to register free; following which visitors will be able to access the site’s comprehensive web-based catalogue of tyres and accessories. In this way, car tyres, lorry tyres, light truck tyres, motorbike tyres and high-quality motor oils will be offered in the fleet shop, while a personal sales contact will give advice to fleet customers and negotiate individual fleet solutions. In addition to these services, Delticom states that a network of professional service partners – which currently numbers over 5,700 in Germany alone – is available to fit online purchases. The average delivery time, the company adds, is between 48 and 72 working hours.
A group of three private equity firms are reportedly planning takeover offers for Continental AG’s tyre and rubber units. According to reports originating from the German Handelsblatt newspaper, Kohlberg Kravis Roberts, Bain Capital and Allianz Capital Partners are all preparing bids for the businesses. On 23 October, Bloomberg reported that financial investors were considering making offers for Continental AG’s tyre and rubber divisions. According to this report, the potential offers would value the company at 7 – 11 billion euros.
While there has so far been no independent verification of the reports published by Handelsblatt, they are definitely plausible. In 2006 Bain Capital made an offer for the German tyre and automotive supplier, but was rebuffed. This was followed by reports that General Capital, Goldman Sachs, Permira and KKR would join forces to attempt a purchase. This means two of three potential bidders named by news reports were previously prepared to bid for Continental in 2006 when the group’s share price peaked at a level almost three times higher than it is today.
Speculation that divestitures were on the horizon began almost as soon as the initial takeover bid became apparent in July. However, rumours gained momentum on 8 October when it emerged that Continental executives had already mandated Perella Weinberg to look into the possibility of a sale. At the time, the Financial Times Deutschland reported that Continental’s move was: “less a question of selling it than of finding possible partnerships.” However, the latest reports appear to contradict this.
The break-up of the so-called new Continental that executives and managers worked so hard to build would also contradict Schaeffler’s repeated assurances that it never intended to do this. In fact, the assurance that the group would remain intact became a key part of the Schaeffler group’s persuasion of various board members this summer. However, Handelsblatt points out the agreement Schaeffler finally made left room for Continental’s management to make this decision itself. Throughout the takeover battle, then CEO Manfred Wennemer led a series of defensive manoeuvres designed to stave off this kind of break-up. Now that he has been replaced by automotive electronics specialist Dr Karl-Thomas Neumann, there doesn’t appear to be any key leadership figure representing the “defensive” perspective.
Current chief executive Karl-Thomas Neumann, is expected to inform Continental AG’s supervisory board about the equity houses’ bids today (Monday 27 October).
According to Washington, US based local newspaper the Columbia Basin Herald, the Port of Ephrata – the region’s largest landowner – is waiting to receive a site plan from American Tire Corporation (ATC), who is said to have recently signed a purchase and sale agreement for 96 acres of port land. Port manager Mike Read said the means that American Tire Corporation, which will do business as Washington Tire Corporation, has 60 days to change its mind.
Goodyear Dunlop has announced its 2008 Charity Ball, which will take place on 29 November. The event will be the second ball in two years, and follows the success of a similar event in 2007, where the impressive sum of £24,500 was raised for the company’s corporate charity. Earlier in 2008, Goodyear Dunlop pledged to raise £50,000 to fund the development of a specialist play area for the Childhood and Adolescent Mental Health Service (CAMHS) at the hospital. Since the appeal was launched in April 2008 the company’s’ associates have been jumping at the chance to support the cause with Goodyear Marathon truck tyre rolls, dress down days and even a cycle ride from Birmingham to Paris.
“This event is a great opportunity to support the work of the Children’s Hospital, while having a good time,” says Anna Stanley, Goodyear Dunlop communications specialist. “Compared to previous events there is no training, sweat or bungee ropes involved, just a great evening. People can buy single tickets or purchase a whole table for friends, family or corporate guests. Either way a good night is guaranteed. The evening will include a Champagne reception, live band and four course meal, with Central News’ Bob Hall playing host making this a real night to remember in aid of a very worthy cause.”
With motoring costs rising inexorably and no signs of any respite, Marangoni tyres is promoting the “value-for-money” ethic behind its tyres. By launching what the company call’s a “no-quibble” warranty, Marangoni Tyre will supply European designed and manufactured products that are warranted for life from the moment they are fitted.
The comprehensive warranty covers not only unlikely manufacturing defects but also accidental damage such as impact damage from potholes, kerbs or road debris – or irreparable punctures due to nails or glass. For Marangoni it is a pledge of total confidence in product excellence and quality. Marangoni has achieved ISO 9001:2000 certification with all tyres subjected to the most stringent independent testing regimes.
Over a third of used car buyers are looking to counteract rising motoring charges and challenging economic conditions by downsizing to a smaller, more cost-effective car. In a survey carried out on www.glass.co.uk – the Glass’s Guide used car valuation website, 38 per cent of buyers cited fuel prices and rises in road tax for heavier polluting vehicles as factors motivating them to swap their car for a more compact and efficient model.
The poll also revealed that a growing number of motorists are switching to diesel as a way of cutting running costs. Of those surveyed, 29 per cent stated an intention to exchange their petrol vehicle for a diesel model, expecting to take advantage of significant reductions in CO2 emissions and fuel consumption.
Schaeffler Group today bought a further batch of stock already under its control in an effort to reduce the cost of the deal Continental takeover deal. It was the fourth time Schaeffler has done this. The group reportedly bought 1.05 million shares yesterday.
According to Bloomberg, Schaeffler has bought 3.17 million tendered Continental shares since the company’s offer expired on 16 September – equal to roughly 2.43 per cent. The average price paid was about 61.50 euros, which would amount to a savings of almost 43 million euros ($58 million) versus the price due under the offer. Schaeffler spokesperson Detlef Sieverdingbeck said the recent move is not likely to be the last purchase: “If further purchases make financial sense, we will continue to buy.”
Importer Tireco has filed suit against two Canadian firms alleging they infringed on Tireco’s distribution deal with Taiwan’s Nankang Rubber Tire Co. Tireco named Fastco Cananda and YHI Canada Inc. in the suit, claiming the two “intentionally” purchased and sold “Nankang-made products in Tireco’s exclusive territory.” Tireco claims it “has an exclusive distribution agreement with Nankang Rubber Tire Company for all Nankang-made products that covers the United States, Mexico, Canada, and the U.S. territories.” The suits were filed separately in the Ontario Superior Court of Justice. In the suits, Tireco seeks injunctive relief and punitive damages.
Tireco said it has previously had “other successful lawsuits filed in the United States against unauthorized distributors including Turbo Wholesale Tires Inc., Zisser Tire Company, and Sentaida International.” In a statement, Tireco General Counsel Tom Mills said: “We want the industry to be on clear notice: we are the exclusive distributor in North America for Nankang-made products. If you purchase Nankang-made product from someone other than Tireco and their authorized dealers and sell that product in North America, you will be sued. We will continue to aggressively enforce our exclusive distribution rights to protect our dealers and the integrity of the Nankang brand.” (Tire Review/Akron)
Shandong Province, China based nano precipitated calcium carbonate (NPCC) manufacturer ShengdaTech announced on October 3 that a Chinese tyre manufacturer has issued purchase order requesting ShengdaTech supply its ongoing tyre production requirements. This order was made, says ShengdaTech, after the company successfully completed product testing of its NPCC in a major tyre manufacturer’s production process. The name of the tyre company involved in the testing or the company that has issued the purchase order has not been disclosed.
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