In July UK car production dipped 3.8 per cent or 5500 units, but remains 1.1 per cent up over the course of the year, according to the Society of Motor Manufacturers and Traders (SMMT). At the same time new car registrations fell 4.6 per cent. Meanwhile diesel registrations equalled their highest ever-level occupying 32.5 per cent of the total market.
New passenger car registration in Europe reached 1,240,539 units in May this year according to statistics published by the ACEA today. These figures represent a rise of 1.2% in comparison with 1,226,000 units produced in May 2003. This marginal increase has been put down to fewer working days in most EU countries but also to declining consumer confidence in some countries. Cumulative figures for the first five months of this year show an increase of 2.8% in line with most predictions.
National figures for the month of May show increases in a majority of countries. Among the five main markets Italy (+12%) was the best performer, ahead of Spain (+8.9%) and France (+4.8%), while Germany (-7.3%) and the U.K. (-2.8%) posted decreases. Cumulative figures show increases in 11 countries with +2.7% in the U.K.
Registrations in the new EU Member States were down 5.6% with the Czech republic and Poland posting significant decreases, while Lithuania was the best performer.
New passenger car registrations in Europe (EU-15 + EFTA) for January 2004 amounted to 1,173,273 units, representing a decrease of 1.6 per cent (-1.6 per cent in the EU-15) with respect to January 2003. The figures for the first month of the year show a contrasting picture from country to country: in some of them, there are clear signs of recovery, while in others uncertain economic conditions continue to prevail. This is well illustrated by the figures in the five main markets. While Germany (-12.4 per cent) and France (-11.9 per cent) posted decreases, Spain (+9.2 per cent), the United Kingdom (+5.8 per cent) and Italy (+5.6 per cent) showed a positive start of the year. Overall passenger car registrations in the eight main markets among future EU Member States grew 3.5 per cent. The two main markets, Poland and Hungary, both posted an increase of 5 per cent, while the Czech Republic saw a decrease of 9.8 per cent.
Western Europe new passenger car registrations for October 2003 amounted to 1.179.024 units, representing a decrease of 0.3 per cent with respect to October 2002. The number of working days in October 2003 was the same as in October 2002. This basically flat result seems to point towards a stabilisation of the market, in line with most economic indicators. National figures show increases in 7 out of 15 EU countries, ranging from +5.4 per cent in Luxembourg to +33.9 per cent in Finland. Spain was the best performer among the 5 bigger markets. Decreases ranged from -0.3 per cent in Italy to -11.6 per cent in the Netherlands and Denmark. Cumulative figures for the first ten months of the year show a closing up of the overall decrease, now -1.3 per cent. Five countries post positive figures, ranging from +0.3 per cent in the U.K. to +25 per cent in Finland. All other countries report decreases, ranging from -0.6 per cent in Luxembourg to -20.2 per cent in Portugal.
September new car registrations for Western Europe rose by 4.4 per cent over last year across the main five markets (France, Germany, Italy, Spain and the UK), which was better than many industry analysts had forecast. Over the 15 EU members, figures were broadly similar (+4.5 per cent). In unit terms, registrations totalled 1,363,206 units.
“The European Truck Tyre retreading industry is healthy and provides the transport industry with high quality products which allows them to reduce tyre cost and transport cost. However, retread products are not legislatively treated equally to new tyres, and this is a growing threat to sustained growth for this industry”. The legislative problems faced by the retreading industry were outlined to T & A by Lennart Lindström – product manager at Bandag Europe – during Autopromotec 2003. The basis for the EU legislative framework is the Whole Vehicle Type Approval (WVTA) directive 70/156/EEC. This directive sets out the rules for the use and production of many vehicle parts, including tyres. Up until now, the WVTA has not taken into account the existence of retreaded tyres, nor have any of the quite numerous regulations and directives that exist for new tyres. All legislative work on tyres in the EU is solely focusing on new tyres. The WVTA does not yet exist for trucks, but work is underway to introduce this certification for trucks, and then new truck tyres must meet the same requirements. The certification principle for type approval implies that each authority grants authorisation for a vehicle, a system, a component (like tyres) and this authority remains solely responsible for the conformity of production of the certified product. For retreads ECE Regulations 108 (passenger tyres) and 109 (truck tyres) exists. Despite industry efforts to introduce ECE 108 and 109 into an EU mandatory directive, Brussels has not taken any visible initiative. In absence of the expected and desired EU directive, some member states have started to introduce ECE regulations 108 and 109 into national mandatory legislation. This is the case in France, Spain, Poland, Croatia and the Czech Republic. Other countries like the UK, Sweden and Denmark have begun the national legislative process to introduce them. This still leaves a great number of countries with no active plans to introduce these regulations. It is estimated that over 200 retread companies out of approximately 700 active companies in Western Europe have gained their ECE 109 certificate to date. Absence of equal rules creates an unfair competitive market. Bandag are suggesting that it is necessary to form a retread industry interest group, in order to proactively define potential future legislative content on matters like noise, wet traction and rolling resistance, and work in close co-operation with legislative bodies. BIPAVER and BLIC should, perhaps, take the joint initiative to the creation of such a group. The need to recruit new members to BIPAVER, including supplier members was emphasised by RMA secretariat, Sheila Ikin. This is especially relevant now that BIPAVER is focused on the interests of the retreading industry. One of the causes taken up is the unjustified ban on the importation of retreaded tyres, currently operative in 11 countries known to the RMA. There is a definite need to protect the retread industry against damaging legislation, hence the moves by BIPAVER to persuade Brussels to transpose ECE 108 and 109 from a recommendation to a directive.
Having recently sold a number of its Stop ‘n’ Steer centres in the UK, there are rumours that Kwik-Fit is set to rationalise its European operations. Our information, which comes from sources close to Kwik-Fit, but who did not want to be named, is that the company is looking at selling its operations in Poland, Belgium, Spain and Ireland in order to concentrate on the UK, Netherlands, France and Germany. We contacted Kwik-Fit in the UK to see if this was indeed the case and received the following reply from a company spokesperson: “Kwik-Fit is undertaking a review of all its operations. It would therefore be inappropriate to comment on future plans at present.”
In an attempt to maintain strong results in Spain and to meet future challenges Michelin Spain has announced plans to reduce its staff by 1200 employees over the next three years. The reduction will come from a number of measures which will include early retirement and redeployment. The plan will see the closure of Michelin’s steel wheel plant in Aranda in 2005. Work will be transferred to plants in France and Germany. 600 workers will be affected by this move. The rest of the losses will be at Valladolid and Lasarte. Once detail agreement with the unions has been arranged the plans will be submitted to the Spanish government for approval in compliance with Spanish law.
Anyone in the tyre business who has spent holiday time in the South of Spain will probably have noticed the branding of Confort Auto – the red, yellow and black logo emblazoned across the frontage of the white and black tyre depots along with the eagle logo and the Grupo Soledad inscription. They may not have realised that, with 57 workshops, Confort Auto is the largest independent fast fit operator in Spain. They may not have made the connection with the retread industry either, for the parent company of the Confort Auto brand is Grupo Soledad, which is also the owner and manufacturer of the Insa Turbo retread brand of truck and car tyres. Given the poor reputation of retread tyres in the UK market it may be difficult for some to reconcile a retread operation with the modern and professional approach of Confort Auto. However, the history of the company runs deeper still. The retreading division is based at Aspe outside Alicante, and the operation has grown on this site gradually expanding to take in more and more of the available space here. There is a great deal of development in the area and further expansion is planned in the near future, with a new warehouse at an industrial site a few kilometres away. This will create space at the Aspe plant for further developments.
The Imperpar Group has been founded on the tyre business and tyres accounted for around 70 per cent of the Group’s gross revenue in 2001. Consequently, HiperImperio is the core element of the group though Managing Director António Barros dos Santos expects to see the emphasis gradually change by 2004. Tyres will remain the core business at 60 per cent of revenue, but other sectors of the business are expected to grow at a greater rate. The key targets for the tyre business will be to develop market share in the Iberian Peninsula, particularly in Spain. He sees no immediate overseas investment. Development will be undertaken by acquiring existing independent businesses. Dos Santos: “We also have a franchise operation. These Club Auto Box outlets are not owned by us but are effectively controlled by us. There are currently about 20 Club Auto Box franchises and this is another sector through which we can expand. We also have 12 new shops opening in the New Year throughout Portugal. Our retail presence in Spain is spread with three outlets in Galicia, one in Valladolid, three in Madrid, 5 in the Balearics and 12 in the Canarians Islands. But there is still room for a great deal of development in the Spanish market. We sell to over 300 dealers throughout Portugal and 100 in Spain. HiperImperio has also introduced its own brand passenger car tyre under the Rolltec name, produced by a global tyre manufacturer to international standards. Currently, there is a restricted range of fast moving sizes but the range is expected to expand in the coming year. HiperImperio uses this brand as its own in Portugal and sells it exclusively through its own outlets. However, its own distribution companies sell the brand on a global scale and it is available to other distributors in European markets for national distribution through Europe as a private brand. The business was built around the retread industry and astute business development has taken the Imperpar Group from carcasses and retreading to a multi-discipline business playing on a global market. However, retreads still play an important part in the Group’s development and although there is currently less emphasis on retreads in the tyre division than there has been in the past, retreads still account for some 15 per cent of revenue.
French fast fit auto chain, Feu Vert has purchased 55 auto centres which operate from Carrefour shopping centres in France. This brings the number of Feu Vert centres to 370. 300 in France and 62 in Spain, plus others in surrounding countries. Feu Vert turnover is now in excess of 700 million Euros. The company is 62 per cent owned by Monnoyeur and 38 per cent by Casino. The company is also the majority shareholder in Mondial Pare-Brise – the auto windscreen company.
Ahead of the official figures, analysts are predicting a fall of 6 per cent in November for sales of cars in Western Europe. All of the five major markets showed a drop in sales. France was down 10 per cent, the UK down 6.8 per cent, German sales fell 6 per cent, Spain was down 8.7 per cent and Italy showed a small fall of 1.3 per cent. Among the car manufacturers, the only positive growth (+10 per cent) was for the Japanese companies, notably Mazda, Mitsubishi and Subaru. Ford was next best, showing a decline in sales of only 1.9 per cent. The worst performers were Fiat and BMW (both down around 20 per cent).
European anti-trust inspectors have launched raids on six chemicals companies suspected of fixing prices in carbon black, a product used in the tyre industry. The surprise inspections were carried out on Tuesday at premises of the six firms in France, Germany, Italy and Spain, the European Commission said. The European Union’s executive arm said it was looking for “evidence of a cartel agreement and related illegal practices concerning in particular price-fixing for carbon black”. Degussa has admitted it is being investigated, in addition to Phelps Dodge and Cabot Corp whose shares fell at the news. “Entirely in line with our corporate compliance rules, we are fully cooperating with the investigation,” Degussa said in a statement. “We are confident that the investigation will prove soon that price fixing within the carbon black industry did not happen,” it added.
TRW Automotive has opened a new 15,000 square metre state of the art braking friction manufacturing facility dedicated to the aftermarket. The 15 million Euro investment at Olvega, in Spain’s Castilla-Leon region, has been opened in to meet demand for TRW’s breakthrough heavy metal free Lucas brake pads. TRW now has nine dedicated European aftermarket manufacturing sites in addition to 23 OE braking, steering and suspension plants, supporting the company’s ambition to have the best original equipment based chassis systems programme in the aftermarket. Currently, production at Olvega is running at almost two million pad sets a year; at full capacity, the site will produce in excess of five million pad sets annually. The plant employs 200 workers.
Hayes Lemmerz has announced the sale of its Schenk foundry, sited at Maulbronn, Germany, to Metallwerke Kloß GmbH (MWK), for an undisclosed sum. The light metal foundry produces parts for, among others, the automobile industry and employs 300 staff. MWK has four locations in Germany, plus plants in Hungary and Spain, and employs 650 people.
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