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HiQ Launches “New Generation” of Tyre Retail

On the same day that Which? Magazine published details of disappointing franchise dealer inspections, HiQ has started what it calls a “revolution” in fast fit retail. According to the company, the launch represents much more than simply a new look, but a completely new concept in tyre retail, designed to counter negative consumer perceptions of the industry. The concept also features a greater emphasis on using Internet technology, offering HiQ franchisees a share of the margin generated from each tyre sold online and then fitted in store. Describing the current stage of the retail business’ development as “exciting times,” HiQ managing director, Neil Burrows invited journalists to tour the flagship Nottingham retail centre.

Viewing the brand new HiQ it is clear that great attention has been paid to developing a retail experience that is at odds with the perception of tyre buying being a distress purchase. For a start the design is light and bright. Then there are entertainment features such as a plasma screen TV, a Playstation and broadband Internet access. But dig a little deeper and you see that the HiQ concept is also driven towards demonstrating that consumers are getting value for money – next to the plasma screen is a smaller flat screen monitor displaying the results of Pro-Align fitted Hunter DSP600 wheel alignment process in realtime. Gone are the days of “oh yeah, we did the tracking mate.”

For full details of the new HiQ network, franchise concept and the new Nottingham branch, see the complete article in the September issue of Tyres & Accessories.

1st August 2007/by Tyrepress Editors

A ‘Once in a Lifetime’ Opportunity

Having just been given the nod to proceed with the largest acquisition in its 136 year history, Continental AG is set to become one of the top five worldwide automotive suppliers. Following the July 25 granting of consent from the supervisory boards of both Continental and Siemens, the 11.4 billion euro purchase of the latter’s VDO Automotive division was approved subject to permission from antitrust authorities.

Based on 2006 figures, the combined annual sales of Continental and Siemens VDO Automotive AG will reach around 25 billion euros, and the resulting company will boast a global workforce of close to 140,000 employees. “Together Continental and Siemens VDO Automotive AG, two companies rich in tradition and endowed with an enormous performance capability, have the once-in-a-lifetime opportunity to forge a global frontrunner in the automotive supplier sector,” said Continental Executive Board chairman Manfred Wennemer. “By joining forces, pooling our innovative prowess and allying our leading positions worldwide in key market segments like safety, chassis, powertrain systems and telematics/infotainment, we are extremely well placed to take on the global competition and to profit from all mega-trends in our branch of industry.

27th July 2007/by Tyrepress Editors

Siemens Selling VDO Unit to Conti

Continental AG will become the proud new owner of Siemens’ VDO automotive electronics unit after agreeing upon a deal worth 11.4 billion euros. The details of the sale were confirmed at a meeting of Siemens’ supervisory board on July 25. Following the sale, which must first be granted approval from the relevant antitrust authorities, Continental will become one of the world’s five largest automotive suppliers. Assuming no delays in antitrust clearance occur, the sale should be closed towards the end of this year’s fourth quarter. Integration will be concluded by the end of 2009.

The sale to Continental spells an end to the possibility of an IPO for the VDO unit as previously considered. At the same time as this deal was approved Siemens also announced its intention to purchase the US manufacturer of medical equipment Dade Behring for US$7 billion

25th July 2007/by Tyrepress Editors

New Hankook Plant Under Fire from Unions, Locals

Within a month of opening the Hankook factory in the Hungarian town of Dunaújváros has become the subject of labour law breach allegations. These complaints from union representatives, including accusations that plant management has not adhered to conventions established by the International Labour Organisation and the EU, have resulted in employment inspectors visiting the facility.

Amongst the union’s list of grievances are accusations of illegal dismissal of workers, late payments, no extra pay for overtime, company discouragement of union activity and unsanitary working conditions. Following investigation by Hungary’s Employment and Work Safety Authority a report on the matter is due to be released and the end of July.

Hungarian government plans to provide Hankook with 92.6 million euros worth of subsidies in order to eventually increase the number of employees at Dunaújváros to 1,500 have been approved by the European Commission. However, senior union representative Tamás Székely has said he intends to meet with Hungarian Prime Minister Ferenc Gyurcsány and insist the government withhold these subsidies until the union is satisfied all labour issues have been resolved.

24th July 2007/by Tyrepress Editors

Conti Boosts Presence in Emerging Markets through Acquisition

Continental’s Automotive Systems Division is bolstering its brakes systems capabilities in both Europe and in emerging markets, particularly Asia, through the acquisition of drum brake manufacturer Automotive Products Italia S.r.l. from the Australian Pacifica Group Limited. Based in Cairo Montenotte, in the Italian province of Savona, Automotive Products Italia employs approximately 500 people and since its establishment in 1984 has grown into a business with annual sales (2006) of 79 million euros.

This acquisition is not the beginning of relations between Automotive Products Italia and Continental Automotive Systems – the two parties have been involved in a technical and marketing cooperative agreement for the past decade. Automotive Products Italia has grown to become Europe’s second largest producer of drum brakes; approximately 5.8 million drum and park brakes were manufactured at the company’s 17,000 square metre facility in Savona last year, and counted amongst the firm’s OEM customers were major manufacturers such as Fiat, Ford, Renault/Nissan, Toyota, Land Rover, Mazda and General Motors. Upon regulatory approval the company will be integrated into the Hydraulic Brake Systems business unit of Continental Automotive Systems.

19th July 2007/by Tyrepress Editors

Keeping Swimmers Safe with Goodyear

Motorists who buy Goodyear tyres will be helping to keep the Royal National Lifeboat Institute’s (RNLI) fundraising efforts afloat. Goodyear has joined forces with the prominent UK safety charity to help fund the RNLI’s vital lifesaving training, and every purchase of a set of Goodyear HydraGrip rain tyres – a product that independent tests have shown can reduce stopping distances in wet conditions – will see a donation of £2 go to the RNLI’s innovative training programme.

Goodyear brand manager Ben Crawley is delighted to be supporting the cause. “The RNLI is a fantastic example of an organisation with an innovative approach to safety and we are working with the charity to help fund and highlight its state-of-the-art training programme to ensure that volunteers get the best possible support…….we will also be looking to support the charity in many other ways.”

13th July 2007/by Tyrepress Editors

Myers Industries Shareholder to Vote Against Proposed Purchase

(Akron/Tire Review) On July 23 in Akron, Ohio, Myers Industries shareholders are expected to vote on the proposed $1.07 billion purchase of Myers Industries by GS Capital Partners, a private-equity unit of Goldman Sachs.

One of Myers Industries’ shareholders, Mario Gabelli, stated in a letter filed with the Securities and Exchange Commission that he would vote against the merger proposal. Gabelli’s investment company holds more than 3.1 million shares (8.9% of outstanding shares) of Myers Industries.

In his letter, Gabelli stated that federal TPMS requirements present opportunities for the company’s automotive service business and that financial projections do not include benefits gained from a potential financial restructuring. However, Myers Industries’ board of directors reportedly supports the purchase.

9th July 2007/by Tyrepress Editors

Cevher Group Purchase Remaining Subsidiary Shares

Turkey’s Cevher Dokum Sanayii aluminium foundry was acquired in its entirety on June 19 by sister alloy wheel company Cevher Jant Sanayii, who purchased the 18 per cent minority shareholding in Cevher Dokum held by Teksid S.p.A. The Ozyauz family, owners of Cevher Jant, now has full control over the entire Cevher Group. The Cevher Group of companies, established in 1955, supply OE wheels to a number of carmakers, including Vauxhall, Volkswagen, BMW, Audi and Volvo.

6th July 2007/by Tyrepress Editors

WRAP Names Three Funding Recipients

Three companies have become the recipients of grants from the Waste & Resources Action Programme (WRAP) as part of their initiative to help businesses increase their capacity to reprocess old tyres. The initiative was open to any business involved in the reprocessing of tyre waste that would otherwise have ended up as landfill.

One of the recipients, Bristol Tyre, is a newcomer to the tyre processing industry and WRAP has provided support by funding a shredding machine and related equipment. A second recipient, McGrath, will use the WRAP funds to purchase tyre shredding and granulating equipment along with a loading shovel and grab machine. The third company, Great Yarmouth’s Aquablast, has developed bespoke machinery to remove steel from tyre rubber via high pressure water blasting. The WRAP funding has enabled Aquablast to create a machine capable of handling earthmover tyres.

2nd July 2007/by Tyrepress Editors

Goodyear Opens New Indian Retail Outlets

Goodyear India is attempting to raise its profile through the opening of new branded retail outlets, the latest being in the southern state of Kerala. The two new outlets, in the towns of Malappuram and Kollam, are part of Goodyear’s efforts to gain a stronger foothold in the nation’s replacement tyre market.

The new stores will also stock a range of car care products supplied by other manufacturers, such as perfumes, car wash and tyre shine – the intention being to make the stores a place where customers can purchase all their automotive-related requirements under the one roof.

26th June 2007/by Tyrepress Editors

Trend to Accessorize Vehicles Going Strong

(Akron/Tire Review) American drivers continue to embrace the notion of customization and personalization, having purchased a record $36.72 billion worth of specialty automotive products in 2006. The number represents a 7 per cent increase over 2005, when sales reached $34.28 billion.

“Today’s consumer wants something unique and different,” said Jim Spoonhower, vice president of market research for the Specialty Equipment Market Association (SEMA). “They’re buying vehicles that are dependable and reliable, but then they’re personalising those vehicles so that they look distinctive, perform differently, are more comfortable, convenient, safe or just more fun.”

21st June 2007/by Tyrepress Editors

Yokohama Tyres Launch ‘Buy N Fly’ in Qatar

Ali Bin Khalifa Al Hitmi & Company, Qatar’s sole distributors of Yokohama tyres, is running a “Buy ‘N’ Fly” summer promotion that will last until July 31. The promotion, which entitles the end-user to a raffle coupon upon purchase of two passenger car, SUV or light truck tyres, features prizes including air travel packages for six persons, for three nights from Qatar Airways Holidays to Bangkok and Kuala Lumpur. Other prizes include 10 LG slim televisions of 29 inches, 10 LG DVD players, 25 Nokia 1600 mobile phones and 10 Moulinex Blenders. The raffle draw will be held at Al Hitmi’s main showroom on Salwa Road on August 1.

The details of the draw was announced at a gathering held at the main showroom, attended by Yokohama’s general manager (Middle East) Taketoshi Morita, general manager of Ali Bin Khalifa Al Hitmi & Co, Adli Hashim Sourani, and Karun Menon, sales and marketing manager of the group.
Ali Bin Khalifa Al Hitmi & Co has been sole distributor of Yokohama tyres since in Qatar since 1964.

6th June 2007/by Tyrepress Editors

No Plans for Pirelli Tyre IPO – Gobbi

According to Pirelli & C SpA managing director for finance and strategic planning Luciano Gobbi the company has no plans for a separate listing of its Pirelli Tyre unit. These comments were reported by Italian media agency Radiocor, and come from a speech the executive gave in Paris.

“At the moment, the IPO of Pirelli Tyre is not in the programme. We have no evidence of a plan in this direction,” said Gobbi. Recent analyst reports indicate that Pirelli will move to re-acquire the 38.9 per cent Pirelli Tyre stake from Speed, a company set up by six Italian and foreign banks. For this purchase Pirelli will dip into the funds – an estimated 3.3 billion euros – it will receive from selling its stake in Telecom Italia SpA. Gobbi said he expects these funds to arrive between July and October.

In January Tyres & Accessories reported that an IPO of Pirelli Tyre looked likely, based on information that indicated both Speed and Marco Tronchetti Provera were keen to press ahead with plans to list the division.

29th May 2007/by Tyrepress Editors

Borrowed Safety

Tyres & Accessories has previously reported on the problem of unsafe used tyres offered for sale in a number of African countries and the resultant risk to life and limb, and therefore we were interested to learn of one company’s plans to offer an alternative to these hazardous items. Dunlop Nigeria and Oceanic Bank International have launched a collaborative venture which they hope will make it easier for motorists to obtain new tyres rather than relying on their used counterparts.

The collaborative effort, to be known as the Dunlop Tyre Acquisition Scheme (D-TAC) was recently launched in Nigeria and Lagos, and provides a means by which customers can purchase Dunlop tyres at a discounted rate using the bank’s credit facilities, a means of purchase that has yet to gain wide acceptance in these countries. Under the terms of the financing deal arranged by D-TAC motorists will pay just a fraction of the cost of their new Dunlop tyres up front, bringing safe tyres within the reach of many who could otherwise not afford them.

23rd May 2007/by Tyrepress Editors

Goodyear Offering to Go at $33 Per Share

(Akron/Tire Review) Goodyear has confirmed that it has set $33 as the per share price for its public offering of 22.7 million shares of common stock. The offering will close on May 22, Goodyear said. In addition, Goodyear said it has granted the underwriters a 30-day option to purchase up to 3,409,091 additional shares of common stock to cover any over-allotments. The tyremaker plans to use the proceeds – expected to be $725 million – to retire existing bank loans and for “general corporate purposes.”

18th May 2007/by Tyrepress Editors