News articles on the tyre retail business
According to Continental, the cost of natural rubber rose fourfold between January 2009 and February 2011 to a record high of more than US$5.60 per kilogram and the current yearly average price has remained at $5.40. Due to this ongoing increase and the rise in other raw material costs, the tyre maker will increase its prices for commercial vehicle tyres in Europe on May 1.
Halfords Autocentres has pledged to make customers' lives easier by championing the use of 'plain English' in its garages, following a poll of 2,000 motorists carried out for Halfords which revealed a high level of confusion around mechanical jargon and the need for simple and un-patronising language when dealing with motorists.
Over nine out of ten car owners (91 per cent) say they are left bewildered by terminology used by mechanics and almost half of motorists (48 per cent) admit paying for a service or repair without understanding what it was for.
Stapleton’s Tyre Services has officially confirmed that on 28 February 2011 it acquired all the shares of North Eastern Tyre & Exhaust Limited (NETE). However, an official statement issued by the company reported that NETE will continue to trade as a wholly-owned subsidiary of Stapleton’s Tyre Services. Stapleton’s representatives said the company intends to complement NETE’s “professional approach to the market and their excellent customer service in order to ensure the future success of both companies.” No further details of the price or the terms have yet been released.
A motorist survey conducted by HiQ shows economic factors are prompting 32 per cent of drivers to opt out of regular vehicle servicing. This is, admittedly, four per cent less than a similar survey taken by the fast fit network a year ago, yet HiQ manager Stuart Car points out that “while the initial outlay for a car service might be off-putting for some drivers, the implications of not taking one will hit the pocket harder in the long run.”
HiQ has named Motorama in Tamworth as the latest garage to join its network. Some £30,000 was invested converting the garage into a HiQ centre following owner Jay Ghedia’s decision to sign on as a franchise partner; the funds paid for numerous site upgrades, including an interior and exterior refurbishment.
The HiQ fast fit network has launched a new sales campaign aimed at aligning it with many popular high street fashion chains and outlets. Known as the ‘Big Deal’, the promotion will tempt customers with “eye catching offers and discounts.” HiQ's marketing manager Geraldine McGovern says the new retail programme – which gets under way with an MoT programme that runs until the end of April – will “steal a march” on the fast fitter’s competitors.
The use of ‘high-PAH’ extender oils in tyres manufactured for sale within the European Union has been prohibited under the Reach regulation since January 1, 2010. This restriction was heeded by firms producing within the EU and appropriate modifications to the manufacturing process made before the deadline, and the European Tyre and Rubber Manufacturers’ Association (ETRMA) reports the confirmation of these producers’ compliance by independent testing. However the ETRMA notes “strong industry concern” exists as to whether all tyres imported into the European Union are being tested for compliance. For this reason the ETRMA itself took on the task of testing 45 brands of tyre – 110 tyres in total – that are currently offered for sale within the European Union. The results confirmed that the association’s apprehension was not unfounded.
We’ve just emerged from a season that saw winter tyre sales go through the roof, and the word from many within the wholesale and retail industry is that if you couldn’t make a profit selling tyres during the winter of 2010/11, you really should find yourself a new vocation. Belgium based wholesaler Deldo Autobanden N.V. needn’t worry; it says that the winter season and 2010 in general was “very good” for the company – and not just because of its strong winter tyre sales. When speaking with Tyres & Accessories, Deldo international sales and marketing manager Rutger Veerman shared that last year the wholesaler built upon a recent pattern of growth, and is continuing to do so.
Kwik Fit Group’s fleet division has added its voice to Stapleton’s in saying that, following the tyre retail giant’s takeover by Itochu, it is business as usual. In a press statement the fleet business said: “following the sale agreement it is ‘business as usual’ for fleet and retail customers across its network in the UK as well as in the Netherlands and France where the company also operates.”
Following the news that the Japanese conglomerate that own Stapleton’s Tyre Services has bought Kwik-Fit, Itochu has clarified that while the group is interested in “know-how” synergies between the businesses, they will continue to be run as completely separate entities.
Kwik-Fit Group has confirmed earlier reports that PAI Partners has sold the fast fit chain to the Japanese Itochu Corporation for £637 million. The purchase price is said to include £457 million of debt, which will be paid off in full at completion, according to a Financial Times report. The deal is reportedly Itochu’s biggest investment in the UK and follows its acquisition of Stapletons in 1994. The company is also already talking about the potential synergies between the two businesses:
Kwik-Fit has reportedly been sold to the Japanese conglomerate that owns Stapleton’s, Itochu Corporation. According to a City AM report, the deal follows the signing of a three digit million pound deal yesterday (1 March 2011). The article suggests Kwik-fit’s former owner, private equity firm PAI Partners” has “cashed out” of its six-year ownership of the chain for “£637 million, which includes net debts of £457 million.” A Kwik-Fit spokesman refused to confirm or deny the reports when Tyres & Accessories asked for confirmation of the news. Either way, the reports suggest the deal is still subject to regulatory approval.
Sailun has stated its satisfaction after receiving plaudits for its new Sailun Atrezzo Z4+AS high performance tyre in a recent independent tyre testing event in Toronto, Canada. Canadian automotive journalist John Mahler of the Toronto Star put three BMW 3-series through a number of tests on the Mosport facility, utilising the skid pad, an adjacent giant exercise area and a short public road loop. Tyre longevity was not part of the test. The Atrezzo Z4+AS performed particularly well in the ride quality (where it was placed first of six) and noise tests, where it was the equal quietest. The drivers also said they were impressed with the sporty, aggressive-looking tread pattern.
Launched by the Tyre Industry Council in 1999 with support from manufacturers through the BTMA and ITMA, the TIF Responsible Recycler Scheme has recently come in for some praise from franchise-based retailer HiQ. The fast-fit network says the scheme, which it has adopted as the recycling policy for old tyres across its 150 centres, is now “a great guide to responsible disposers who share HiQ’s desire to protect the environment”. HiQ commercial manager Farrell Dolan said the industry should be congratulated for its recycling efforts, in spite of consumers’ negative perceptions surrounding fast fitters’ recycling policies that HiQ says continue to persist in spite of the RRS’s eminence.
Michelin North America has launched a new initiative for passenger car and light truck drivers in the United States and Canada today, in which every set of Michelin tyres bought will be registered with the Michelin Promise Plan. The plan promises a 30-day satisfaction guarantee, three-year assistance with changing flats tyres and mileage warranties.
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