TIA to Give Away Thousands at SEMA
The Tire Industry Association (TIA) has announced that two special events are taking place during the SEMA Show in Las Vegas, Nevada, with each event featuring a cash giveaway of thousands of dollars.
News articles on the tyre retail business
The Tire Industry Association (TIA) has announced that two special events are taking place during the SEMA Show in Las Vegas, Nevada, with each event featuring a cash giveaway of thousands of dollars.
Bridgestone Firestone North American is recalling 25,600 of its tyres. The ‘voluntary safety’ recall follows concerns that “a small percentage” of Dueler A/T 693 tyres, size LT285/75R16, load range D, imported into the US from Japan, could suffer belt detachment.
Within a couple of weeks of the fall of the Berlin Wall, the Polish government abandoned its centrally planned economy and replaced it with a liberalised system based on free market thinking.
Today, 14 years after those first steps towards a western economic system, Poland and most of its business sectors are dominated by change. This progression is true of the tyre business too. In early June, the members of the new Polish tyre retail association, Auto-Kompleks, met in Bogumilow in order to discuss its plans for the future and to correct the mistakes of the past.
Since its foundation in 1999, the 40 or so members of Auto-Kompleks have met once a year in south-west Poland. After five years in existence, the association is still searching for a fundamental direction. Although Auto-Kompleks calls itself an “association” it is not entirely clear whether the title means the same as it would in the UK.
For example, one legacy from the organisation’s foundation period is that two members from the same town are prohibited from joining. This kind of territory protection, which is usually bestowed upon retailers or wholesalers by the industry, suggests that Auto-Kompleks was initially formed in order to act as a retail co-operative that could strengthen the individual members’ buying power. Indeed the initiator and founder of Auto-Kompleks, Kazimierz Mazurkiewicz, who was elected as the group’s president in June, told Tyres & Accessories that the foundation was formed as a reaction against the attempts of Polish wholesalers to sell directly to the end-consumer.
Auto-Kompleks was perceived to be the smaller and less powerful retailers’ best defence against the price dictating power of the tyre industry. Although the organisation was originally conceived to represent the interests of independent tyre dealers in Poland Mr Mazurkiewicz has to admit that Auto-Kompleks’ efforts have only been halfway successful. We are learning through experience, the new vice president Ryszard Maguder added. Although still “in discussion”, explains the tyre dealer from Kruszyn; a change of Auto-Kompleks’ admission policy is just a matter of time.
There is a new question of the month on the Tyres & Accessories web site. This time it refers to the changing world of the truck tyre market.
As dealing with truck tyres becomes more and more professional, and as retail businesses are forced to adapt to the market, T&A asks for the opinions of those at the centre of the action.
To read the question of the month and to add your own views, click here
Amcast Industrial Corporation, has completed the sale of the majority of assets from its Flow Control operation. The sale was made to the US subsidiary of Dutch group Aalberts Industries NV.
Elkhart Plumbing, Elkhart Industrial and Amcast Industrial Ltd were all included in the sale. It is reported that the sale was made in order to comply with provisions of the company’s loan agreements. The net proceeds of the sale equated to approximately $54 million and will be used to reduce debt.
With an expected turnover of around $130 million (£71 million) and a workforce of 430 employees, Elkhart Products Corporation (EPC), is one of the three biggest players in the North American market. The company has an estimated 35 per cent share of the wholesaling market and a 10 per cent share of the retail market.
The agreement puts the Dutch company at the top of the world market for copper fittings and provides it with a strong American base. With the acquisition of the three production facilities Aalberts will also gain an extensive sales network in the US and Canada.
Hi-Q Tyre Services has appointed Naithan Keeping to the role of fleet director. Mr Keeping, 31, joins the Goodyear Dunlop retail network, from ATS, where he was fleet sales director.
Cooper Tyre & Rubber has announced that it intends to produce racing tyres at the company’s factory in Athens, Georgia. As a result of the decision the company plans to invest $11 million (£6 million) in the plant so it will be able to produce racing tyres in the factory that currently produces retread products. The conversion to motorsport tyres should begin immediately. Developmental tyre production will start in early 2005.
The recent acquisition of the AA by private equity groups CVC Capital Partners and Permira has led to management changes at Kwik-Fit. The initial impact was felt as soon as the purchase was made public when Kwik-Fit chairman, Sir Trevor Chinn, and chief executive, Tim Parker, announced that they would move to the AA on completion of the deal.
Goodyear Dunlop Tires Europe has completed its acquisition of the Dackia tyre retail group, in Sweden.
The general assembly of Point S in France has announced the appointment of Olivier Steier as its new president. Mr Steier succeeds Jean-Piere Legros who decided not to stand for re-election.
The Motor Transport Fleet Truck of the Year Award went to Daf’s CF85, for the third time in four years. The Motor Transport Award judges, a mix of fleet engineers and managing directors, praised the truck for its “overall package,” and described the victor as “a clear class-leading truck that continues to evolve in the tough retail market.” The Mercedes-Benz Sprinter achieved Fleet Van of the Year for the second year running and Grocontinental was Haulier of the Year.
Richard J. Kramer, senior vice president, strategic planning & restructuring for The Goodyear Tire & Rubber Company, has been named executive vice president and chief financial officer effective June 1. Kramer (40) replaces Robert W. Tieken, who will retire on May 31. Tieken (65) has been Goodyear’s CFO since May 1994.
The UK fast fit sector has long had an enigmatic player in the shape of Hi-Q. Even without the coming together of Motorway and Hi-Q the brand was substantial and widespread across the UK thanks to a blend of equity and partnership units. However, unlike its rivals, Hi-Q suffered from a raft of management, branding and performance problems. Even the relatively small Central Tyre operation could offer a standardised branding and a certain level of uniformity of image and service across its domain. Hi-Q was, by comparison, a sleeping giant. It was an operation that needed organisation, it needed a good shakedown and sort out. It needed someone capable and prepared to turn it on its head, shake out all the loose change from its pockets and put it back on its feet.
That was a view taken, not only by spectators but by people higher up the feeding chain in the parent Goodyear organisation. As Goodyear and Dunlop were brought together, so too were all the group operations and this led to, in Hi-Q/Motorway, a complicated and divisive structure where there were dual brands, in both truck and car, there were multiple sales teams and, to quote Graham Scholefield, the man brought in to head up the revitalised Hi-Q, “The main task was to create cohesion in the business, give everyone a sense of direction; and improve communication and motivation.”
Graham Scholefield has a considerable length of experience in corporate retailing, initially with House of Fraser and then with Kwik-Fit, holding powerful positions in both organisations. When CVC bought Kwik-Fit Scholefield was looking at finding another outlet for his retailing skills. When the option of taking on Hi-Q came up, he realised that the task offered him a real challenge, not only that but turning Hi-Q from the sleeping giant it was into the powerful retail operation it should be, would be realising untold potential. “I could see the potential of Hi-Q,” says Scholefield, “here was a massive asset under-utilised, under-performing, but with all the elements of a first class retail operation. I could see this was a business I could feel passionate about and that I could really use my retailing skills to develop its full potential.
“The coming together of Goodyear and Dunlop had created a great deal of uncertainty. The business was fragmented by old loyalties and structures. For a considerable time people didn’t know what was happening, where the future lay, and there was talk of the Equity being sold off. The perceived wisdom now is that tyre manufacturers should manufacture tyres. There was a period when they tried to control the whole chain through to the end user, but despite the obvious advantages the Equities were often usually the agents of the tyre manufacturer and sold what the manufacturer told them to sell. These were issues that had to be addressed. The difficulty of the disjointed management was one met by restructuring the business, but this could only be done once there was a commitment to the retail operation.
“Fortunately the new Goodyear Dunlop management could see merit in the retail operation and the decision to divest was reversed. We knew that there was confusion about who Motorway and Hi-Q were and what they each did. We needed to clear the clutter and create a cohesive approach. It was clear though that what was needed was a single organisation. The choice was made to re-brand the whole retail operation as Hi-Q, as that was the stronger of the two brands and the brand used for our strategic partner network. That re-signing and re-branding operation was completed by December 2003.”
Chinese President & Party General Secretary Hu Jin Tao visited the Hankook Tire plant in Huai-an, Jiangsu Province and talked to the workers. More than 40 other senior provincial officials were also on hand.
Nokian Tyres has released its 1Q figures, which show a 17.8 per cent increase in sales over 1Q 03, from 95.7 million Euros to 112.7 million Euros. Group operating profit was up to 10.7 million Euros (3.2 million). Profit before taxes was 9.6 million Euros (1.6 million) and net profit totalled 6.5 million Euros (0.7 million). Sales of passenger car, heavy tyres and retreading materials rose, but bicycle tyre sales fell.
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