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CVC To Join Kwik-Fit And Halfords?

There are reports that CVC is considering the merger of Kwik-Fit and Halfords, both of which it owns. Kwik-Fit is a true fast-fit operation, while Halfords deals in auto accessories. The reports suggest possible synergies, such as purchasing, plus gains from selling properties in locations where there is duplication. CVC would not comment on the story. The car servicing side of Halfords business was bought by the AA a year or so ago and has been re-branded AA Service Centres.

27th August 2002/by Tyrepress Editors

Turnover And Profits Up For Nokian

Nokian Tyres has released its figures for the second quarter. Looking at the figures for the first six months, both turnover and operating profit were up on 1H 2001. Turnover rose 12.6 per cent to 193.3 million Euros (1H 2001 171.6 m Euros) and operating profit was 8.7 m Euros (6.7 m). Net profit was 1 m Euros (-0.8 m Euros). The good figures were the result of price increases, improved product mix and lower material costs. Most product groups showed increased sales, with the exception of retreading materials, and the Vianor retail chain lost 2.5 m Euros.

12th August 2002/by Tyrepress Editors

CVC Capital Buy Halfords

CVC Capital, the potential buyer of Kwik-Fit has bought Halfords from Boots Comp. PLC for 410 million pounds, with a possible further 17 million pounds payable in performance related agreements. Halfords sold its garage operations to the AA last year leaving the core business in car parts and car and cycle accessories.

26th July 2002/by Tyrepress Editors

Analysts Cautious On Nokian

Nokian’s shares have risen 12 per cent over the past three months and, for the year as a whole, have risen slightly against an 11 per cent general decline in the auto and component sector. The Finish company traditionally makes the lion’s share of profits in the second six months of the year, because of winter tyre sales, plus Nokian has announced a joint venture in Russia and its RoadSnoop tyre pressure monitoring system has great potential. Despite all this, analysts Morgan Stanley have downgraded the company from “Equalweight” to “Underweight”. The reasons for this caution are 1. A worry that the winter tyre market may not be as good as expected, due to large stocks. 2. The high level of investment needed and time scale of the Russian JV. 3. The high level of investment in retail expansion which has yet to show returns.

25th July 2002/by Tyrepress Editors

Nationwide Autocentres Buys Rest Of Lex

Nationwide Autocentres (NW), the Solihull (UK)-based car servicing specialist, has successfully completed the purchase of Lex Autocentres Limited (LA) from the RAC/Lex Service PLC. NW was formed in January 2001, when it acquired 41 of the Lex Autocentres. A further four independent garages were added to the network during 2001. With this acquisition, NW claims to be the largest independent network in the UK with 142 centres and a sales turnover of approximately £40m. Both NA and LA specialise in vehicle servicing, MOT testing, mechanical repairs and maintenance for both retail and fleet motorists.

17th April 2002/by Tyrepress Editors

Latest On The Kwik-Fit Sale

Speculation continues over the future of Kwik-Fit, with investment bank Goldman Sachs handling disposal of the chain. The word is that Ford would prefer to sell the group in one go, rather than in job lots. As well as talk of a management buy-out, there has been interest from venture capitalists CVC, Cinven and KKR, among others. Senior automotive analyst with Datamonitor Simon Hodson, suggests that there could be interest from a rival vehicle manufacturer. He also says it is possible that a US automotive market company, such as Penske Autocentres, could make a bid.

16th April 2002/by Tyrepress Editors

Goodyear/Dunlop Reorganisation

Effective February 1, 2002 Goodyear Great Britain Limited and Dunlop Tyres Limited will implement an organisational structure reflecting its intentions to manage the two brands separately in the marketplace supported by various shared service functions. Among the key appointments are the following, who report to Marco Molinari, Chairman and Group Managing Director UK Operations: Bill Yates, Managing Director Dunlop Tyres Limited, Bill Hall is appointed Managing Director Goodyear Great Britain Limited and Paul Harrell, GM Retail Operations.

31st January 2002/by Tyrepress Editors

Cuts In Rubber Output Planned

Indonesia and Thailand have threatened to cut rubber production. Indonesia and Thailand are planning an immediate 10 per cent cut in production in a plan to push prices up by as much as 30 per cent. Malaysia is expected to follow suite. If the cuts are effective it could result in 20 per cent price rises in the retail prices of tyres. In order to sustain the cuts, Indonesia and Thailand are proposing to convert rubber plantations into alleged cash crops such as cocoa and coffee. It is expected that the main beneficiary of this move would be Russia, the main producer of synthetic rubber.

29th January 2002/by Tyrepress Editors

NTS Definitely Sold to Management

It is now official: In a MBO, the retail chain NTS and the wholesaler Viking International, have been sold to their top executives. Although neither side wishes to comment on the price, it is now common knowledge that the price is more likely to be 40 million Euro than 50 million Euro. At the end of the 80s the Continental group bought the chain from Michelin for 140 million pounds Sterling because the Monopolies and Mergers Commission signalled that it would not accept the total acquisition by the French company. Continental managers are convinced that the details of the sale will ensure further co-operation with the new owners. Continental is convinced that it will consolidate, or even improve its current position in Great Britain through co-operation with the now independent retailer NTS, under the umbrella of the now named Axle Group.

9th January 2002/by Tyrepress Editors

Restructuring For Bridgestone/Firestone Inc.

US company Bridgestone/Firestone Inc. has announced a new corporate structure from Dec. 1st. The reorganised company will be known as Bridgestone/Firestone Americas Holding Inc (BFAH), which will be the holding company for a number of subsidiaries. John Lampe will be CEO and president of BFAH. The change has been made to take advantage of better financing rates and to re-focus on core businesses.

28th December 2001/by Tyrepress Editors

Good Second Quarter Results From Nokian

Nokian Tyres has reported its Q2 results, which proved better than analysts expected. While sales were as forecast (up 11.7 per cent to 95 million Euro), operating income was much higher than predicted at 8.5 million Euro, with an operating margin of 8.9 per cent (last year, 3.5 per cent). Results were helped by the 1.9 million Euro operating profit recorded by the Vianor retail chain. Analysts are cautious about the outlook for the second half of the year, with much depending on winter tyre sales.

30th November 2001/by Tyrepress Editors

New Car Fleet Service From Stapleton’s

In the UK, wholesaler Stapleton’s Tyre Services has announced that it is to invest two million Pounds in an internet-linked network of service outlets, called Tyreserve, aimed at the car fleet market. Stapleton’s retail division (50 outlets) will be the first member and Tyreserve will begin trading next April. The new move has the full backing of Itochu, Stapleton’s parent company.

30th November 2001/by Tyrepress Editors

Project Wholesaling

In spring the editorial staff of NEUE REIFENZEITUNG and our sister magazine TYRES & ACCESSORIES started an in-depth look at wholesaling in the tyre business. The reason was that the function of wholesaling has changed significantly during only a few years as a bridge between industry and the retail sector – a process which is still on-going and which is still evolving. What began as a small project, like Topsy “just growed”. As a result of this we can give a basic introduction into the function of tyre wholesaling. We also noted that this market has a lot of niches with very specialised players in areas such as agricultural, industrial, motor wheel, vintage, sports, aviation or other niche tyres. So the result of our work is more than a range of company profiles but an overview of the different facets of wholesaling with only two connecting elements; all are involved with tyres and we always have to recognize that there is no manufacturer able to supply all potential retailers. The wholesaling of tyres has a very important function. And it becomes clear that the idea of some manufacturers carrying out “a little bit of dealing along the way” is today more than ever a mistake. Tyre dealing has a future, and tyre wholesaling has too.

30th November 2001/by Tyrepress Editors

The Influence of Tyre Tests On Sales Figures In The Retail Business

The tyre tests appear normally twice a year in spring and in autumn. Millions of people at least notice them, and among these many even study them very intensively. The topic discussed here is the tyre tests which appear regularly every year in the big end consumer-oriented automotive magazines in Germany. Their judgement has a significant impact on the consumers. The tyre manufacturers know this for a fact and promote positive test results in their advertising campaigns. A note as “very recommendable”, for example, serves as a kind of award, which has a strong convincing effect in the tyre retail shop. However, if the product fails in all important magazines the result will be the opposite and the whole thing can end in disaster. Tyre manufacturers fear these situations, specially when they have introduced a new product to the market. Tyre retailers use positive test results often as an additional argument in a sales discussion with the customer. There is just one small problem: the exact influence of tyre tests on sales in the retail shops – in the sense of knowing the precise percentage of customers who buy a special tyre just because of the test result – is very difficult to measure. But there are some qualitative characteristics of tests that can be found out without problems:Tyre tests have a different relevance and coverage. The effect of tyre tests on customers is of a limited time – especially in the winter-season. The sell-in of the retailer is just as influenced indirectly (backwards) by tyre tests. Experiences from the previous tests play a role. The influence of winter tyre-tests is regarded as much higher than those of summer tyre tests by retailers and customers. Tyre tests have an effect on a certain segment of customers: people who are already concerned about the problem of safety.

30th November 2001/by Tyrepress Editors

Fire Remains In Firestone

Bridgestone/Firestone Inc. has acquired a majority shareholding in Morgan Tire & Auto. This equity has, after it purchased rival Tire Plus Limited in the summer of last year, more than 550 depots in 24 states of the USA and was second biggest independent equity in the USA, referred to as a “retail-powerhouse”. Turnover of Morgan Tire & Auto exceeds 800 million Euro. Larry Morgan, who began his career as an employee of Firestone, remains CEO. The acquisition is a clear sign that, despite the Firestone recall disaster in the USA, the tyre manufacturer intends to stay in the market with the Firestone brand.

30th November 2001/by Tyrepress Editors