Tyres & Accessories June 2009
June's issue of Tyres & Accessories is now available to download and for virtual reading. This issues' features include: Retail Chains & Buying Groups, Industrial Tyres and ATV Tyres:
News articles on the tyre retail business
Tag Archive for: retail
HiQ On-Track for 175 Branches in 2009
Product NewsTyre manufacturers, especially those with large OE commitments, have really felt the pain of recession with most announcing double-digit falls in year-on-year sales for the first quarter of this year. However, the continued development of the revamped HiQ chain exemplifies how the downturn hasn’t been all bad for the wider tyre industry. In fact, in the retail business there are even examples of the ‘down’ market actually helping companies grow. Tyres & Accessories recently met with HiQ retail director Juergen Titz and found out how the network’s expansion plans are progressing.
There are currently 140 HiQ centres across England and Wales, however the plan according to Juergen Titz is to establish 175 by the end of 2009 – and another 100 by 2012. When you consider that HiQ franchised off the 106 formerly Goodyear Dunlop owned sites only last year, clear progress is being made towards the HiQ rapid expansion goals. Despite the fact that Goodyear Dunlop’s decision to run the network as a hard franchise operation represents a significant change in direction for the company, there is real sense of optimism (amongst both managers and franchisees) about the company’s future.
NYC Tyre Dealer Now GCR
Product NewsHorseheads, New York, dealer Twin Tier Tire is now a GCR Tire Center. Bridgestone Americas added Twin Tier Tire to its GCR stable after its owner decided to retire. Already a Bridgestone dealer and Bandag retreader, the location will continue to offer retail tyre and vehicle services in addition to its commercial tyre services. (Tire Review/Akron)
Continental 2 Series Commercial Tyre: More Details
Product NewsAs previously published on Tyrepress.com, Continental has launched a new range of commercial vehicle tyres, representing four new design features. The tyres feature entirely new inner liner technology, dubbed “AirKeep” for its ability to stay inflated for longer, in addition to modifications to the belt, bead and contour design. The tyre will be manufactured primarily at the company’s plant in Puchov, Slovakia. It comes onto the market at a tricky time, with EU and UK new truck tyre sales down 34 and 20 per cent respectively, according to figures quoted at the launch.
Conti is backing up its new range with a “Technology Truck” tour throughout Europe and the ContiCostCalculator, a new electronic tool based on research conducted by Continental and certified by DEKRA, which calculates the economic and ecological benefits of fitting the new range to customers’ fleets. These initiatives form part of the company’s response to the belief that, in these trying economic times, “you have to understand the pressures on customers and…be a business consultant,” as Conti’s general sales manager – truck replacement Barry Guildford said at the tyre launch in London. He also told Tyres & Accessories that the company was “heavily investing in training [its] salespeople”, in order to impress upon customers the long-term cost benefits of fitting the new Continentals. “It’s about educating the fleet,” he concluded.
Kwik-Fit’s German Branch for Sale
NewsKwik-Fits German business Pit-Stop Autoservice is for sale, according to a report on Tyrepress.com’s German sister website Reifenpresse.de. The Pit-Stop chain (which comprises of about 410 outlets in Germany) reportedly has an average turnover of around 300,000 euros per branch and not in the best shape. Certain parties are said to have stated their interest in a purchase, however, so far the bids have only been described as ‘disillusioning.’
Kwik-Fit Sells Pit Stop to BluO
NewsThe Kwik Fit Group has sold Pit Stop, its German fast fit operation, to BluO International Affiliates, a German private equity investor. The deal, which was confirmed in an email to Tyres & Accessories and is subject to the completion of certain German regulatory approvals, is expected to be completed by the end of June 2009. Bluo has a reputation for investing in restoration and reportedly aims aims at a nominal purchase prices. No details of the price-tag associated with this purchase have yet been revealed.
Ian Fraser, Kwik Fit Group CEO commented: “The German market has seen particularly tough trading conditions over the last two years and Pit Stop has not been able to deliver the same levels of growth as other Kwik Fit group companies – which are continuing to deliver impressive results in a challenging climate.”
Reports: Goodyear India to Expand Annual Capacity to 4 million Tyres
Product NewsGoodyear India is aiming to boost annual capacity by 15 per cent to 4 million tyres a year, according to various online news sources. The news follows the launch of the Goodyear DuraPlus in the country, a tyre aimed at small family hatchbacks that account for the largest segment in the Indian car market. Goodyear India reportedly wants to target the replacement market with the new tyre and is said to be negotiating car makers on the subject of OE for the new tyre.
In an interesting twist, the reports also states that Indian branch of the manufacturer will soon be offering run-flats imported from Goodyear’s manufacturing facilities in the US or Europe. According to the reports, these tyres retail at more than 10,000 rupees (£132) each in India.
Protyre Creates 21 Dedicated Bike Tyre Centres
Product NewsProtyre has invested in establishing 21 dedicated Two-Wheel Centres in the UK. The new centres are designed to offer a “ride in and ride out service” and to further underline the company’s commitment to this important market, Protyre has created a motorcycle tyre website www.rubberupright.com.
The new website is now live and will be progressively developed to provide in-depth sales information and advice and safety tips for bike riders. To mark the launch, Protyre is teaming up with Bridgestone to offer a £10 discount on the purchase of two Bridgestone tyres or free fitting as an alternative – a voucher can be downloaded from the website up to the end of June and it is valid to the end of June 2009. As an added incentive to visit the new website the company has created a 2-Wheel Challenge with 20 bike related questions.
Power to the Elbow
Product NewsNeed extra leverage or extended access when ratcheting? Laser Tools say the new Laser 1/2″D Extending Ratchet is the answer. The 1/2″D ratchet features an extending function, which simply releases the spring loaded mechanism on the handle and the ratchet grows from 460mm (18″) to 601mm (24″). Manufactured from polished Chrome Vanadium and with 72 teeth gearing for a smoother operation, the ratchets are expected to retail at around £35.00.
Bush Tyres Opens New Bourne Retail Branch
Product NewsBA Bush & Son and its wholesale operation B.A.B. Distribution (a member of the wholesale group Grouptyre) has invested in a new retail facility. At a time when many businesses are contracting, the family concern, which this year marks 60 years in business, is celebrating by opening its 14th tyre retail depot in Bourne, Lincolnshire, at the end of April. The expansion is set to continue in July/August when the company is scheduled to open a new, purpose-built tyre retail centre in Spalding. According to company representatives, branch number 15 is “absolutely state of the art” and even has its own bridge.
“We always aim to reinvest profits in the company and are taking advantage of economic conditions to implement an aggressive growth strategy designed to increase our market share throughout Lincolnshire, Humberside and East Yorkshire by providing unrivalled levels of customer service,” said director Tom Bush, adding: “For many years we have met the needs of customers in Bourne from our Boston and Sleaford branches, so it was logical to develop a stand alone facility, albeit linked to and fully integrated within our retail operation, which would enable us to provide a more comprehensive and better quality of service to customers in this area.”
Gerstenberger Leaving CTNA for Hannover Tyre Retail Post
Product NewsAfter spearheading the turnaround of Continental Tire North America’s consumer tyre business, Andreas Gerstenberger will now turn his attention to Continental AG’s retail store business. Gerstenberger was named executive vice president of ContiTrade, which operates company-owned and franchised retail tire stores in 12 European countries. He will relocate to Hannover, Germany, later this year. Bill Caldwell, head of CTNA’s passenger and light truck tire OE business, was named to replace Gerstenberger. He will serve as vice president of sales and marketing.
“Andreas has played a pivotal role in building an excellent marketing and sales team that contributed significantly to the turn around of CTNA’s operations,” said Matthias Schoenberg, CTNA CEO. “He developed an outstanding team, and together they delivered for us a consistent marketing strategy, which included the revamping of the Continental and General tire brands, developing innovative consumer promotions as well as growing our retail footprint to ensure profitable growth for CTNA.
JK Tyre Tops Indian OE Survey
Product NewsJK Tyre has topped the J.D. Power Asia Pacific 2009 India Original Equipment Tire Customer Satisfaction Index. Now in its ninth year, the study analyzes new-vehicle buyer satisfaction with original equipment tyres by examining five key factors – durability, ride, traction and handling. With an overall score of 811 on a 1,000-point scale, JK Tyre performed particularly well in all factors that drive overall satisfaction. MRF came second with 804, followed by Bridgestone (797), Apollo (784) and Goodyear (767). Overall satisfaction has declined by 10 points from 2008 to an average of 798 in 2009. Furthermore, the percentage of customers reporting a problem with their original tyres increased from 19 per cent in 2008 to 22 per cent in 2009.
“The occurrence of even a single problem leads to a strong negative impact on tyre satisfaction, with satisfaction averaging 70 points lower among customers who experience a tyre-related problem, compared with customers who do not,” said Mohit Arora, senior director at J.D. Power Asia Pacific, Singapore. “Problems like excessive tyre noise while driving, poor traction on wet roads and recurring flat tyres not only cause driving inconvenience, but also can be safety hazards, which intensifies the negative impact on customer satisfaction.”
Financing Deal on New Goodyear HQ Agreed
Product NewsOn Monday Akron and Summit County authorities in Ohio signed off on a new financing deal for the Goodyear Riverwalk project. The financing is a major step towards an estimated $900 million project that includes a new global headquarters for Goodyear Tire & Rubber Co., retail and office space and a hotel in East Akron. National City Bank has agreed to buy $17.2 million worth of bonds issued by the Summit County Port Authority and backed by the county and city, thus kick-starting the plans. The project was unveiled in late 2007, and was a major factor in keeping Goodyear and its 2,900 jobs in Akron.
Higher and Higher
Product NewsIn last May’s feature on high and ultra high performance tyres, Tyres & Accessories noted the persistence of the rise in popularity for the market segment. In 2008, the trend continued apace, with some figures suggesting that the UK market share for UHP tyres was closing in on a fifth, rising from 16.9 per cent in 2007 to 19.5 per cent last year. It is fair to say that things are likely to be a little different following the financial crises experienced from the middle of 2008, though even if much of the market will be downgrading to lower performance vehicles with smaller rim sizes – as seems to be the general consensus – it is likely to be a couple of years before the market feels the changes. And while even perennially popular cars such as the Ford Focus and the Volkswagen Golf tend towards higher performance tyres, with rims not uncommonly topping 16”, perhaps there is a decent chance that the market will remain relatively stable.
Amerityre Appoints New President & CEO
Career TracksAmerityre Corporation’s Board of Directors has implemented a management restructuring that has resulted in the resignation of company president and chief executive officer Gary Benninger and the appointment of incubent vice president of marketing Michael Kapral in his place. Mr. Benninger joined the Company in October 2005, initially serving as its chief operating officer, before becoming president and CEO in September 2007. Mr. Benninger will continue to serve as a member of the Company’s Board of Directors.
“Gary has worked hard to put the Company in a position to begin manufacturing and selling solid polyurethane forklift tires,” commented Louis Haynie, chairman of Amerityre’s Board of Directors. “Now, with Mike taking the reins, we expect his knowledge and experience in the tyre and tyre product markets will launch those tyres successfully,” he added.
