News articles on the tyre retail business
ATS Euromaster (ATSE) has published further details of its plans to launch a nationwide run-flat fitting and puncture repair service. The main point that ATSE clarified is the fact that it is referring to the latest generation of self-supporting run-flat technology tyres manufactured by Bridgestone, Dunlop, Goodyear and Michelin. These, says the company, are “approved for minor repairs, subject to strict criteria.”
ATS Euromaster is to equip each of its 507 centres across the UK with new technology to enable it to service and carry out minor repairs to the latest generation of run-flat technology tyres. The announcement contrasts with official advice given by the BRMA (now BTMA) and TIC a little over a year ago. Neither body recommended the practice. A technical representative of one leading manufacturer even went as far as saying it is “not prudent” to repair these products.
The distribution and retail subsidiary of Amtel-Vredestein, AV-TO, has announced the opening of its new showpiece, a tyre and automotive service centre in Moscow. The openings signals the final step in the company’s 14 month re-branding of its retail network.
In order to achieve his goal of taking Michelin to the number one spot in the UK two-wheel market by 2010, Michelin Tyre Plc’s head of Two-wheel Olivier Gros, has plans to overhaul the marketing and distribution of its premium level products. Perhaps the most eye catching announcement is the news that Michelin will release a new dual compound tyre, following the success of the Power Race and Pilot Power 2CT. T&A has seen a preview of the new sport touring tyre, which was exhibited at the Motorbike Trade Expo earlier in January. Details are sketchy at the moment, but external independent testing appears to suggest that the new dual compound tyre will last 10 per cent longer than any of its competitors. But how does the new product compare to the fuel saving and tread life characteristics of the company’s car and truck ranges?
Striking USW workers have stepped up their conflict with Goodyear in North America by staging demonstrations outside the premises of retailers selling the company’s products.
Bridgestone’s North American subsidiary, Bridgestone Americas Holding (BSAH), has bought Bandag Incorporated for US$1.05 billion. The deal sees the two companies enter into a merger agreement pursuant to which BSAH will acquire the outstanding shares of each class of Bandag stock for US$50.75 per share in cash. Bandag’s Board of Directors unanimously approved the agreement. The transaction is expected to be completed late in the first quarter or early in the second quarter of 2007, subject to the receipt of shareholder and regulatory approvals and the closing conditions. In 2005 Bandag had worldwide sales of US$921 million.
Leicestershire based Tyron Developments have recently seen their leading safety products introduced into the Qatar market, distributed nationwide by the Safety Centre.
Safety Centre manager Nabil Farah is promoting the Tyron product to motorists as a steel, zinc and reinforced plastic band that can protect vehicle occupants from the danger and inconvenience of punctures and blowouts. The Tyron band, which is placed around the rim inside the tyre, prevents deflated tyres from coming loose and slipping into the wheel’s “well”, reducing the ability to control a vehicle.
(Akron/Tire Review) Bridgestone/Firestone North American Tire has named Tim Dunn as director of brand/supply chain marketing, and Steve rammer as director of consumer tyres retail. Both will report to Phil Pasci, BFNAT’s vice president of consumer marketing. Dunn succeeds Pasci, who was promoted earlier this year, in the director position, and will advertising, retail marketing, product planning and supply chain marketing. Rammer will be responsible for BFNAT’s north and south retail regions, Canada and corporate accounts.
The tyre market in Poland is growing continuously. In 2005 about 7.67 million passenger car tyres were sold (+4 per cent on 2004) and this figure is expected to increase by another 7 to 8 per cent during the year, according to a report published by the German governmental institute BFAI. Consequently, this year about 8.2 to 8.3 million PC tyres will be sold on the replacement market in Poland. “Long gone are the times when everybody drove the same tyre all the time. The development in different market segments has been quite heterogenous,” the report points out. High speed and therefore high performance tyres have experienced the strongest growth rates in the recent past. The Polish low budget segment in turn is constantly losing market share.
Autodata has entered into a partnership with the Trading Standards Institute to supply information to its members. Autodata is providing Trading Standards officers with access to its CD1 service information to assist them in identifying and prosecuting the minority of rogue operators that remain in the industry.
This partnership forms part of Autodata’s ongoing commitment to improve standards in the garage industry and prevent the few rogue operators tarnishing the image of the industry as a whole. This initiative is part of a concerted effort to drive up industry standards and goes alongside its relationship with the Retail Motor Industry Federation and support of the Institute of the Motor Industry’s ATA scheme.
A Lincolnshire tyre retail chain owner has won recognition for his decision to offer a second chance to young people who fear they are on the scrap heap. The Shaw Trust award recognises businesses that offer training and career opportunities to young people. Fossit and Thorne’s John Shelton now owns the chain of seven tyre and auto centres with his financial director Richard King, but nearly took a wrong turn himself, when he was expelled from school at 15.
A survey of NTDA retail members has found that 60 per cent are calling on the industry to develop the market. The survey revealed that only 41 per cent of retailers actually stocked cold weather tyres (CWTs) and over 85 per cent thought that motorists still saw CWTs as snow tyres.
Commenting on the survey NTDA Director Richard Edy said: “Cold Weather Tyres have always been regarded as a niche market in the UK, unlike other Northern European Countries where the market is firmly established — even in those countries where the weather conditions are very similar to the UK.
Since Goodyear Dunlop Tire France was founded on 1 January 2004, the group has increased its market share 4 percentage points to 23 per cent of the 32 million-unit strong French passenger car tyre replacement market. The company’s next goal is to close the competitive gap between itself and domestic market dominator, Michelin.
On a global level the size of the three leading players (Bridgestone, Goodyear Dunlop and Michelin) is relatively comparable. In France it is a completely different story. According to French Automotive information source autoactu.com, Michelin holds a 45 per cent market share of car, 4×4 and van tyre sales in France, while Goodyear Dunlop’s 23 per cent puts it in second place.
Up till now Reedijk Banden Import B. V. (RBI) has generally been known as a Netherlands-based tyre wholesaler that is particularly active within its home market and some trade in Germany, Belgium and France. However since the beginning of 2006 the company has embarked on a controlled expansion programme which has seen RBI evolve into more of an international company with new sales projects being introduced around Europe and most recently in the UK.
“We are making the final decision of the destination between two Chinese cities for passenger- and light-duty truck-use tyres production,” Continental AG executive board chairman, Manfred Wennemer, told the China Daily Newspaper. He did not give details of exactly which cities were being considered for a new production plant, but put the total proposed investment at 200 million euros and explained that his company plans to open 100 franchised and owned retail stores in the country in 2007.
Informed sources told Tyres & Accessories that the two short listed sites are likely to be selected from three possible cities. These are: Shen Yang, Dalian (Liaoning) where the likes of Michelin, Bridgestone and Goodyear are already producing tyres; and Tianjin, where Bridgestone has another factory.
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