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Les Schwab Moves to New Head Office, Announces Appointments

The US based tyre chain Les Schwab Tire Centers announced on December 8 that its new company headquarters office located in Bend, Oregon, opened for business on Monday, November 17, 2008. Over 100 employees relocated to a 123,000 square-foot office building in the north end of Bend. The remaining 220 corporate employees move to the building on December 15, 2008.

“The new headquarters office is part of a transition beginning in 2007 to ensure the people, facilities and programs are in place to support our tyre centres and their ability to continue providing world-class customer service,” said Dick Borgman, CEO of Les Schwab Tire Centers. “With our new headquarters we will continue to attract and retain the talented employees needed to support our retail network of 420 stores and to accommodate future growth.”

9th December 2008/by Tyrepress Editors

Where Will Prices Go in 2009?

For the last six years prices have only gone one way – up. Then recently Morgan Stanley analysts, referring specifically to Michelin’s financial performance, wrote: “We believe it is simply unrealistic to expect current tyre prices to hold during an historic collapse of volume.” The recent fourth quarter round of prices increases will be the last “for possibly years to come,” they said. (See page 3 for more on this) However, the truth is seldom as black and white as it appears and further investigation reveals that different segments are receiving different pricing treatment.

3rd December 2008/by Tyrepress Editors

NTDA Survey Shows Tyre Retailer Confidence Down

The NTDA (National Tyre Distributors Association) has published the results of a members survey, which shows that UK tyre retailers are battening down the hatches to avoid the pain of the looming recession. “Even though it’s the early days of the recession, the answers to our survey indicate that tyre retailers are battening down the hatches and are expecting a tough time ahead,” association director, Richard Edy commented.

Two thirds (66%) of those questioned said that they have reduced their capital expenditure, while 62 per cent have postponed the purchase of equipment. When it comes to the workforce, just over half of the businesses (55 per cent) have reduced staffing levels and 50 per cent have awarded pay rises below the level of inflation. 45 per cent reported that they had reduced staff hours or cut overtime.

2nd December 2008/by Tyrepress Editors

Car Dealers Freeze Pay

Franchised car dealers across the UK have responded to the downturn in the economy by freezing pay scales, according to the rts Auto Retail Industry Salary Survey 2009. The survey reports that 25 per cent of franchised dealer respondents did not increase basic pay for their staff between 2007 and 2008. More than that, it seems that dealers have been taking advantage of the industry’s high staff turnover rates to actually reduce pay rates for new recruits.

25th November 2008/by Tyrepress Editors

Will the Tyre Market See Price Deflation in 2009?

Prime Minister Gordon Brown’s decision to “act now on tax” and cut VAT from 17.5 to 15 per cent is welcome news to those watching household incomes as the dreaded recession bites. The VAT cut means the average family (according to the Low Tax Alliance) will save £341 a year – about enough for four bread and butter tyres or a pair of premium high-performance products. But, while increasing consumers’ ability to spend is always welcome to the trade, it doesn’t have any bearing on what tyre manufacturers will do with their prices in 2009.

For the last six years there has been a continuing upward trend in tyre pricing, mainly driven by increased fuel and raw material costs. In recent months the rate and volume of price increases has crescendoed. Far Eastern suppliers have increased the prices the most, but it is a trend that can be seen across all segments and markets. However, the ripple effect the global economic slowdown has had on things like OE production looks like it has put paid to these kind of continuing price increases. Lower demand and less competition for raw materials means increasing pressure to put the price hikes in reverse.

24th November 2008/by Tyrepress Editors

HiQ Director Predicts ‘Bright New Dawn’

HiQ Retail Director Andy Morris has already set a bold New Year’s resolution for the fast fit company in response to “one of the busiest years imaginable.” HiQ, which has over 120 centres nationwide, announced a national franchise programme designed to speed up the transfer of Goodyear Dunlop owned stores long-term franchise agreements. If that wasn’t enough to keep them busy, the company also embarked on the first year of a three-year sponsorship of the British Touring Car Championship.

Looking forward to 2009 Morris is optimistic: “Our company New Year Resolution is to offer ‘fast fit you can be sure of’ and that is our new company message that you will be hearing more of. It will be relevant to every single one of our centres. It has certainly been a hectic year, but one which has put us in a far stronger position now than we were 12 months ago.

24th November 2008/by Tyrepress Editors

Survey: Canadians Steer Clear of Snow Tyres

A survey conducted by insurance firm RBC and researcher Ipsos Reid shows that a little over half of Canadian motorists put snow tyres on their cars, despite the country’s snowy winter months. Feedback showed that more than half of those who do not use the specialist tyres do not due to the additional costs involved.

Francois Boulanger, president and CEO of RBC General Insurance Company, stated on the release of the information, “Installing winter tires should be a critical safety measure for all Canadian drivers. Canadians need to think of it as an investment in their family’s safety.”

19th November 2008/by Tyrepress Editors

US Retailer Boosts Brand Strategy with Conti, General

An ex-sales director at Continental Tire North America has expanded the brand profile of a tyre and service centre subsidiary of XL Tire. The Pineville Tire & Service Center of Charlotte, North Carolina has added Continental and General to its portfolio in order to enhance its brand strategy for retail tyre sales. Pineville Tire is run by Jim Seidel, the former Director of Sales for Continental Tire North America and owned by the Seidel family.

“We are growing our tyre sales business very rapidly and our customers are increasingly requesting tyres that they had on their new vehicles as original equipment. As the former director of sales at Continental I know first-hand the strength that the Continental brand enjoys at the OE level,” says Seidel, who is CEO and president of XL Tire. Pineville Tire began phasing in the Continental brand after XL Tire purchased its assets in October. The company is now rapidly adding the Continental and General marketing lines.

17th November 2008/by Tyrepress Editors

T&A's exclusive first look at Kwik-Fit’s £10 million National Distribution Centre

Before Kwik-Fit invested in a National Distribution Centre, there was a problem with tyre deliveries. All of the fast-fit chain’s main suppliers were delivering to all of its 670-odd active branches two to three times a week, which was expensive for the delivering manufacturers and disruptive to the Kwik-Fit branches. The answer? Build a specialist centre in cooperation with a leading third party logistics supplier and deliver all the brands in one go. Keen to get an effective new service up and running as soon as possible, Kwik-Fit GB Ltd appointed CEVA Logistics to manage and operate the new Corby-based National Distribution Centre (NDC) and its transport operation in June, before stocking up the site and getting systems up to speed this summer. In October, four months and somewhere in the order of £10 million of investment later, Tyres & Accessories met with Kwik-Fit Fleet sales director, Mike Wise; head of supply chain, Neil Arnott; and Toby Leybourne product director-tyres for an exclusive tour of the state-of-the-art site.

Looking back to the 1970s and 1980s Kwik-Fit sold just 25 different sizes. As anyone in the trade knows, today it is a completely different story and there are up to 700 different size and brand products in the premium segment alone. Something that, according T&A’s Kwik-Fit tour guides, is “a monster to control.” At the same time the floor and storage space available to individual Kwik-Fit branches remains pretty much the same as it was two decades ago. Toby Leybourne summarized the pragmatic thinking behind the project like this: “Having 90 depots inside the M25, for example, means logistics is key, but now Kwik-Fit’s nightmare has become an opportunity.” Head of Kwik-Fit Fleet, Mike Wise added: “Virtually every new vehicle launched comes to the market with a new tyre size…The proliferation of tyre sizes has made it a necessity that Kwik-Fit has its own distribution operation and is not reliant on tyre manufacturers to deliver tyres to centres, which can take several days.”

17th November 2008/by Tyrepress Editors

National Tyres a Finalist in £35 Million Entrepreneur Challenge

National Tyres has been named as a finalist in the North West England and North Wales region of the Bank of Scotland Corporate £35 Million Entrepreneur Challenge. National will now compete with four other entrepreneurs to secure a £5 million funding package, free of interest and charges for three years.

The next stage will see business partners Alan Revie, John Caldwell and John Taylor present their business case to a judging panel featuring two well-known and incredibly successful entrepreneurs. Matthew Riley, the national 2007 Entrepreneur Challenge winner from Daisy Communications, and senior representatives from Bank of Scotland Corporate and Deloitte. The panel will question National Tyres and the other finalists on their future business plans, as well as looking for someone with the entrepreneurial flair, spirit and vision that sets them apart from the rest and makes them an outstanding choice to receive the once in a lifetime funding package that could change the face of the business.

12th November 2008/by Tyrepress Editors

Bridgestone Acknowledged for US Recycling Initiative

As a member of the US Environmental Protection Agency’s (EPA) National Partnership for Environmental Priorities (NPEP) programme, Bridgestone’s BFS Retail & Commercial Operations, LLC (BFRC) was honoured recently at the WasteWise & NPEP Conference for recycling some 145,000 kilograms of lead from lead wheel weights in 2007.

In addition to its ongoing efforts to further reduce the impact of lead on the environment, BFRC launched a US-wide environmental initiative in January 2008 to install non-toxic steel wheel weights instead of lead weights in its customers’ vehicles. BFRC, a member of the Bridgestone Americas (BSA) family, was the first of the major chains in the automotive repair industry to make the switch to steel wheel weights in this market. All of BFRC’s approximately 2,000 US automotive service store locations are switching to more ecologically sensitive, non-toxic steel weights, replacing millions of lead wheel weights each year.

7th November 2008/by Tyrepress Editors

TIA, Bridgestone Announce US Auto Training Collaboration

In the US, the Tire Industry Association (TIA) and Bridgestone Firestone North American Tire (BFNT) have announced that they will offer TIA’s Basic Automotive Training Service (ATS) course via BFNT’s Bridgestone Consumer Tire Education Network. TIA’s ATS Program is designed to meet the need for properly-documented training amongst new employees. Comprised of eight modules, the course covers topics such as the basic principles of tyres and wheels (including sizing and sidewall information), diagnosing tyre and wheel problems and step-by-step procedures for installing one-piece and two-piece nail-hole repairs in passenger and light truck tyres.

TIA executive vice president, Roy Littlefield, stated that, “TIA is proud to offer Bridgestone-brand dealers the opportunity to take advantage of our superior Basic ATS course from the convenience of their computers. This is yet another example of TIA meeting the ever-changing needs of the tire industry.”

7th November 2008/by Tyrepress Editors

Indian Vehicle Manufacturers Revise OE Tyre Offtake Projections

It appears that the current auto industry woes are by no means restricted to North America and Europe. In India, the Hindu Business Line reports that major manufacturers of medium and heavy commercial vehicles have reduced their OE tyre offtake projections by about 40 to 50 per cent during the current financial quarter.

3rd November 2008/by Tyrepress Editors

Finance Shortage “Hurting Commercial Vehicle Dealers”

Commercial vehicle dealers are feeling the pain resulting from falls in the availability and affordability of finance, according to EurotaxGlass’s – publisher of Glass’s Guide to Used Commercial Vehicles. “This scenario has conspired to reduce business confidence,” explains George Alexander, Editor of the Guide. “Existing vehicle-owners and fleet operators are adopting a ‘make-do’ attitude with regard to the vehicles they have for the time being.” However, Alexander notes that the efforts made to support world financial markets could ensure that the current weakness in retail sales will not gain momentum as 2008 comes to a close.

3rd November 2008/by Tyrepress Editors

Dekk Partner Develops New Structure and Marketing Strategy

While there are a few retail chains such as Dekkman and Vianor operating in Nordic markets, the majority of tyre sales are down to a considerable number of independent operators with one or two depots. For most of these as much as 60 per cent of annual tyre sales are compressed into the four month period leading up to the onset of winter. This figure is higher in the North, where the winter season is both longer and harder. High transport costs, extreme seasonal business and little chance of same day deliveries means that high stock levels are usually required at each retail outlet. Despite these difficulties the independents are generally faring better than the equity chains.

Increasingly, independent tyre retailers in Nordic countries are joining what is now recognised as the leading buying group in the region and one of the most progressive international tyre buying groups; Dekk Partner, founded in 1994.

30th October 2008/by Tyrepress Editors