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Apollo Opens First India CV Tyre Outlet

Apollo Tyres has opened its first full-service branded commercial vehicle tyre outlet in India. Located in Salem, in the southern state of Tamil Nadu, the new outlet is called Apollo Trust, and is the first of a number of outlets that will be established in large trucking halt points outside city limits and along India’s national highways. Apollo reports the Salem centre is equipped with the latest commercial vehicle wheel aligning, tyre balancing and nitrogen gas inflation equipment and staffed with highly trained employees. Therefore, the company adds, Apollo Trust is best positioned to cater to the unique and demanding needs of India’s commercial vehicle operators and drivers, who currently utilise both cross ply and radial tyres.

Plans are underway to gradually increase the Apollo Trust network to five locations in the next few months, offering tyres and tyre-related services, alongside the sale of retreaded tyres and retreading materials. Apollo Tyres states in a press release it felt the need to introduce such service-oriented outlets to “assist customers move up the value proposition, enabling them to chose the appropriate application for their vehicles and operational needs through informed decision making.”

29th May 2008/by Tyrepress Editors

Getting Closer to Number One

Just over a year after Tyres & Accessories reported that a newly rejuvenated Michelin two-wheel department was aiming to lead the market, T&A met up with department head, Dr Olivier Gros and Jonathan Brett, manager of the new two-wheel Michelin Business Programme to find out how much progress has been made.

The short story is that Michelin is definitely moving towards its goal of becoming the UK’s number one motorbike tyre manufacturer. Last year, the company gained a six-point share in the sports/sport tyre segment compared with the other leading premium brands (such as Pirelli/Metezler, Dunlop and Bridgestone). And what’s more, because the total market size has remained relatively static, this means that the French manufacturer has actually been gaining sales from its competitors. Looking forward, Michelin is just as confident about next year and Olivier Gros predicts that the company will achieve a further six-point growth next year. In Olivier Gros’ words, 2008 will join 2006 and 2007 as “very successful years” for Michelin motorbike tyres in the UK. When you consider that 2006 and 2007 were both sales records for the company, its demonstrates just how confident the team is that they will achieve their stated aim of becoming number one.

29th May 2008/by Tyrepress Editors

Bridgestone Releases Report on Improper Payments Investigation

Since disclosing on February 12 this year incidents of improper monetary payments to foreign agents, all or a part of which may have been provided to foreign governmental officials, the CEO of Bridgestone Corporation, Mr. Shoshi Arakawa, has directed an ongoing investigation through an ‘Investigation Committee (the ‘committee’) comprised of external attorneys. On the three-month anniversary of the committee’s initial establishment, the company presented its interim report, which is outlined below:

1. Investigation

Since the announcement on February 12, the committee has conducted the investigation ‘vigorously’, says Bridgestone. However, the scope of this investigation is extensive and includes some of the company’s overseas subsidiaries. The subject of the investigation has now expanded to the entirety of Bridgestone’s Industrial Products division. Moreover, since the committee needs to consider not only Japan’s Unfair Competition Act but also the regulations of other countries, this latest report remains an interim report and has not been made final.

28th May 2008/by Tyrepress Editors

Viking Customers Like User-Friendly Web Site

Viking International customers are reported to be pleased with the new upgraded online ordering system launched last year. Huw Lewis Tyres, a Viking International customer for a number of years, commented: “The new site is an excellent selling aid. Customers’ transactions can be completed without having to leave the office. I can immediately see stock availability and offer customers an instant quotation plus guarantee next day delivery.”

16th May 2008/by Tyrepress Editors

Bridgestone Unveils First Stop Model Store

First Stop dealership, Kingsway Tyres has re-opened its Spalding depot with a weekend of events following a major redevelopment. The refurbishment of the Spalding site marks the launch of Bridgestone UK’s ‘model stores’, which are seen as flagship outlets in the First Stop network. Kingsway Tyres invested a total of £200,000 in the refurbishment and extension of the Bourne Road site with a specific focus on providing an appealing environment for customers, including a new reception area and MOT office.

Alex Watson managing director of Kingsway Tyres commented: “We are delighted to unveil the results of the significant investment in the refurbishment and extension of our dealership and are looking forward to providing our customers with an even better experience for all their car and tyre needs. The opening weekend was a huge success and gave us a chance to showcase our re-developed store to new and existing customers.”

14th May 2008/by Tyrepress Editors

Shuttle Tyres Up For Loan

Stories about tyres that travel 100,000 miles are much less of a novelty, but its not very often you come across a set that have been 5.3 million miles. The products in question are retired rubber from the Space Shuttle discovery which, NASA announced last week, would be rolled out as the pilot for a new artefact loan program targeted at museums.

OK so while saying that the tyres lasted 5.3 million miles is, quite literally, an astronomical claim, the performance characteristics of these products should not be underestimated. According to news sources, just one of Discovery’s main gear tyre can carry three times the load of a Boeing 747 tyre or 40 race cars – all hitting the pavement at 250 miles per hour. When you consider that to qualify for a three-year renewable loan, organisations need only insure the tyres for a retail value set by NASA of $250 per tyre, they really do appear to be quite a bargain.

14th May 2008/by Tyrepress Editors

Nokian Reports Strong Sales and Profits

Between January and March 2008, Nokian Tyres Group recorded net sales of 246.3 million euros (199.9 million euros), showing an increase of 23.2 per cent on the corresponding period a year earlier. Operating profit rose to 54.4 million euros (2007: 39 million euros). Compared with the previous year, the group’s net sales increased by 1.4 per cent in the Nordic countries, by 64 per cent in Russia and the CIS countries, by 33.7 per cent in North America and fell by 8.8 per cent in Eastern Europe.

In light of these figures, Nokian Tyres President and CEO, Kim Gran, pointed east in explaining the company’s sales growth: “The majority of growth in sales came from Russia and other CIS countries. Both sales of summer tyres and pre-sales of winter tyres were brisk. The average price of tyres rose as a result of a good sales mix, successfully implemented price increases and new products. Russian manufacture increased in line with targets, and the advantages thereof improved the profitability.”

Passenger car sales were also reportedly boosted by the introduction of the new studless Nokian Hakkapeliitta R winter tyre family, which will be launched to consumers in the autumn.

Deutsche Bank analysts described the results as “signalling future potential,” pointing out that net sales grew 34 per cent and margins reached a high 34 per cent. As a result the bank raised its estimates by some 6 per cent, and its target price to 37 euros. “We believe the fast growth in Russia combined with stability in Russian production were the main drivers on top of which mix seems to have improved slightly. Going forward, we believe margins could remain at the first quarter level at least when compared to history (normally second half margins are above first quarter),” the analysts commented

In a note to clients, ABN Amro said it thinks Nokian’s first quarter results last month were “surprisingly good.” This broker believes a snowy Easter in core markets will result in car and van tyres, and particularly Vianor, seeing some results shift to the second quarter.

Giving an overview of the development of the markets it operates in, Nokian representatives observed that while passenger car replacement markets in Russia and the CIS countries have grown compared with the first quarter of 2007, the Nordic markets declined slightly. Sales grew 64 per cent in Russia and CIS, generating 47 per cent of manufacturing sales.

Interestingly, despite a delay in the onset of the summer season in the Nokian’s Russian and Eastern European markets (a fact that company representatives predict will result in a bumper second quarter), recent developments mean there is a additional upside for the company’s Russian business this quarter. According to the results statement, Nokian will now experience a lower tax rate as a consequence of tax relief in Russia. The tax relief is valid “for as long as the company gains tax on yields corresponding to the amount of the Russian investment, and for two years thereafter.” According to the filing, now that the uncertainties surrounding this tax relief have been ironed out, first quarter 2008 figure contains a non-recurring 6.5 million euro tax relief from the second half of 2007.

Since the company’s last report, the Vianor retail chain has expanded in Russia and Ukraine. At the end of March, the Vianor network comprised a total of 382 sales outlets, 208 of which were partner and franchise stores. During the first quarter, a total of 16 new Vianor outlets were opened, including a branch in New Hampshire, USA and the company’s fifth outlet in Kazakhstan.

Looking forward Nokian Tyres’ expects its prospects for 2008 to be good: “Demand is increasing for winter tyres, UHP summer tyres and SUV tyres, particularly in Russia, the CIS countries and Eastern Europe. In North America, too, prospects in the winter tyre market have improved, whereas in the Nordic countries and Western Europe markets remain flat. Manufacture of forestry machinery as well as other machinery and equipment is active, and the global shortage of heavy special tyres is continuing.”

9th May 2008/by Tyrepress Editors

Apollo Tyres Profits Rocket 125%

Apollo Tyres Ltd has reported a 125 per cent increase in annual net profits, rising from 1.2 to 2.7 billion rupees (£33.42 million). Operating profits grew 50 per cent to 6.1 billion (£75 million), from 4.1 billion in 2006/07. Consolidated revenues grew by 9 per cent, while operating profit showed a growth of 50 per cent from 4.1 billion to 6.1 billion rupees. Net sales grew 9 per cent to 47 billion rupees. Apollo also detailed how its retread business is also booming – sales of DuraTread retreading materials grew 139 per cent in the period.

However, the company reported a worsening raw material situation, with crude and raw material prices rising sharply in the final quarter of the last financial year. At the beginning of the quarter crude was around $90 a barrel, while by the quarter end it had crossed $113/barrel. Rubber moved from 92 rupees/kg to 116 rupees/kg in the same period.

9th May 2008/by Tyrepress Editors

Encircle Offers Internet Tyre Price Monitoring Service

On 1 May Birmingham-based tyre market analysts, Encircle Marketing, added an online tyre retailer price monitoring service to its portfolio. “We shall be continuously monitoring the prices quoted by centre Staff and those available online. Head to Head analysis of the traditional retail sector versus the developing online arena,” company representatives told Tyres & Accessories. Encircle Marketing currently collates over 8,000 telephone prices each month and will add to this an audit of over 3,000 online prices (each month).

8th May 2008/by Tyrepress Editors

Amtel-Vredestein 2007 Financial Highlights Reveal Sales Growth

Full year 2007 financial highlights for Amtel-Vredestein have been made public and show a 22 per cent increase in net sales to US$997.4 million. This sales growth, says the company, can be primarily attributed to increased production and growing demand for Amtel-Vredestein tyres in both the OE and replacement tyres markets, as well as higher sales of the Company’s AV-TO unit due to the acquisitions of the autoparts and tyre wholesale businesses Pigma and Megashina in 2006, and the increased number of retail stores in the latest consolidated results.

Sales from the company’s Russian manufacturing operations, excluding the AV-TO unit, grew 14 per cent in the 2007 financial year, to $442 million, and sales from the European Vredestein Banden B.V. operations grew 18 per cent to $403 million. The company reports that its core passenger car tyre business is driving much of this growth: Net revenue from passenger car tyres grew 21 per cent to $615.8 million, and represented 62 per cent of total sales during the period. The company reports peak demand for its Vredestein and Amtel brands plus additional sales volume via its retail and wholesale channels.

2nd May 2008/by Tyrepress Editors

Vianor Expands into New Hampshire

The Nokian-owned Vianor tyre retail chain has continued its international expansion following the opening of a new branch in Kazakhstan two weeks ago. This time the Finnish based company has taken steps to increase its presence in North America (specifically New Hampshire, USA). Nokian Tyres has made a partner agreement with Vianor-Concord operated by South East Ventures LLC and given them the right to use the Vianor brand. According to company representatives, Nokian Tyres does not officially own Concord, in contradiction with some local news reports. Instead, the agreement sees Concord Tire and Auto Service, an independent company for 27 years, effectively licensed and rebranded as a Vianor outlet. There are now 6 Vianor outlets in the US.

29th April 2008/by Tyrepress Editors

Kwik-Fit Aims to Increase Fleet Share With ‘While U Wait’ Servicing

Kwik-Fit Fleet is officially launching a new “while u wait” servicing option at the UK’s first Fleet Business Show, at the Business Design Centre, London, (29-30 April). The service will be available a roughly half of quick fits 700+ depots.And the first company to sign up to use Kwik-Fit Fleet’s new ‘While U Wait’ manufacturers’ service initiative is Lex, which, with 278,000 vehicles on its fleet, is Britain’s largest contract hire and leasing company. Lex is making the service available to all of its drivers and is the first ‘While U Wait’ service that it has adopted. The service means customers will be able to book a service at a minimum 48 hours notice, significantly quicker than at franchise dealers where up to 14 days notice could be required.

Head of Kwik-Fit Fleet Mike Wise said: “Our new vehicle servicing offering will radically shake-up the entire fleet sector as an increasing number of vehicle owners look to reduce costs and speed up service scheduling by turning to Kwik-Fit.”

29th April 2008/by Tyrepress Editors

US States Lent Support to 2008 NTSW

The RMA says that 25 states in the US issued proclamations or statements supporting National Tire Safety Week, which comes to a close on April 26.

Across the nation, more than 19,000 tyre retail, auto dealer and automotive repair facilities distributed tyre care RMA-produced NTSW brochures, and many of these also offered free tyre care service to motorists. “Proper tyre care is essential to vehicle safety and optimum fuel economy,” said Dan Zielinski, RMA senior vice president of public affairs. “We are grateful to states that are helping to educate motorists to take just five minutes every month to check their tyres.”

States supporting NTSW this year included: Alabama, Arkansas, Arizona, California, Connecticut, Delaware, Georgia, Iowa, Kentucky, Maryland, Montana, Nebraska, Nevada, New Jersey, New Mexico, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, West Virginia, and Virginia. (Tire Review/Akron)

25th April 2008/by Tyrepress Editors

NE Wholesale – Delivering High Performance

For NE Wholesale, the ability to provide three times daily deliver to customers has become a firm emphasis. To achieve this level of service, the company has built up a fleet of more than 120 vans that operate out of five distribution points, infrastructure that despite the cost of developing, has, comments NE Wholesale, been worth the expense and effort. The company has seen a growing number of customers making the switch to NE Wholesale after seeing the benefits offered by the wholesaler’s ‘Rapid Response’ one-hour service, currently enjoyed by around 65 per cent of NE Wholesale’s customers.

“This is a just-in-time service offer that works on the principal of delivering the tyres within one hour of them being ordered,” comments Ben Darcy, NE Wholesale sales & marketing director. “Our delivery service works hand in hand with our high performance tyre stock. Customers cannot afford to have large amounts of expensive premium brand product on the shelf gathering dust, and they don’t need to when they can receive the tyres within an hour of ordering.

24th April 2008/by Tyrepress Editors

New Look for ContiNetwork

As part of its relaunch first announced at the start of this year, the ContiNetwork commercial vehicle retail business has unveiled its new logo and corporate identity. Created by the marketing agency the Haygarth Group, the new look is intended to tie in more closely with parent company Continental.

ContiNetwork manager Stefanie O’Meagher commented: “The relaunch is designed to support dealers and help develop new business opportunities. We’ve been really impressed with the fresh new identity Haygarth has developed for us.”

24th April 2008/by Tyrepress Editors