Truck market – UK bucks downward trend
Across the EU, demand for new trucks (3.5 tonnes to 16 tonnes, excluding buses and coaches) was down 4.1 per cent in June, with 25,459 new registrations in the EU. However the UK bucked this general trend.
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Commercial vehicle sales up
News"Commercial vehicle sales remain strong with around 23 per cent growth in August. Whilst economic uncertainty is ever present, truck and van sales are retaining their strength with all sectors in the market performing better than last year." said Sue Robinson, Director of the RMI National Franchised Dealers Association which represents commercial vehicle and franchised car retailers across the UK, commenting on the SMMT’s van and truck registration figures.
Continental names commercial sales manager
NewsMark Kerswill has joined Continental Tyre Group as truck sales manager with immediate effect. 47-year-old Kerswill brings 22 years of sales experience at both Michelin and Bridgestone to the company’s UK and Ireland commercial sales team and is responsible for the East Midlands and North East England.
Heywood Michelin’s New Truck Operational Marketing Manager
NewsAs of January 1, Guy Heywood, who is currently Michelin’s operational marketing manager for Truck, will take over the role of UK & Republic of Ireland operational sales manager for Truck. In this new position Heywood will report to Truck commercial director Bill Schafer and lead a national team of sales account managers across the UK and Republic of Ireland. In doing so, Michelin comments that Heywood will be leading the largest specialist truck tyre sales force of any manufacturer in the industry.
Duncan Platt New Conti UK Truck Sales Manager
NewsDuncan Platt has joined Continental Tyre Group taking on the role of general sales manager – truck with immediate effect. Platthas more than 24 years experience in the tyre industry in a variety of sales and management roles, including most recently working with Bridgestone on their pan European, regional and national fleet accounts.
“This is a very exciting opportunity for me,” said Duncan Platt, “I’m really looking forward to the challenge of working across all the tyre brands but especially to working with customers to enhance their fuel savings with the benefits of Continentals fantastic product range and services.”
Darren Meikle To Head Conti’s Irish Truck Tyre Sales
NewsContinental Tyre Group has announced the appointment of Darren Meikle as truck sales manager based in Southern Ireland. According to the company, this new position has been created to provide customers with a dedicated account manager in their immediate area. Darren will be responsible for overseeing the requirements of dealers and fleets in the Republic of Ireland, working closely with colleague Noel McGrath who has responsibility for Northern Ireland and the ROI border counties.
Darren, 35, joins Continental with over 10 years experience in the transport industry originally working with Irish Shell (now Topaz Energy) within the Fuel Cards team and from there taking on responsibility as truck sales manager for Advance Pitstop.
Analysts: Conti’s 1Q Results Suggest 100% Increase in Numbers
Career TracksAnalysts have reported that Continental’s first quarter financial results (released last week) show a “100 per cent increase in numbers.” This means that, in Morgan Stanley’s view, the company’s net debt is now “under control at 8.2 billion euros,” approximately 200 million better than they expected.
“Excluding the 1.1 billion capital increase during last quarter, the net financial position deteriorated by 413m in the first quarter 2010, which was largely expected due to seasonality of working capital,” the analysts explained in an investor’s note dated 4 May, adding: “[Capital expenditure was unsustainably low, however, decreasing by 62 million euros year-on-year and represented just 63% of depreciation and amortization and 3 per cent of sales.”
SMMT: February Van Registrations Climb, Trucks Stay Low
NewsThe Society of Motor Manufacturers and Traders says February saw an increase in the number of new van registrations in the UK; up 26.1 per cent on the same month in 2009 to 8,978, raising the 2010 year-to-date total to 20,524 – 8.8 per cent up on January-February last year. However, truck sales continued their downward trajectory, totalling 1,370 in February, over a third down on the same month in 2009 (-36.6 per cent). Sales were also sluggish in January, leaving new truck registrations in 2010 43.7 per cent down from the same stage in 2009. In total, truck and van sales combined were 11.5 per cent up for February year-on-year, but 2.5 per cent down in year to date figures.
Bridgestone Wins Kings Road Tyres Supplier of the Year Award
Career TracksKings Road Tyres has named Bridgestone UK as “Supplier of the Year” for 2008. The award was presented to Julie Plumb, head of UK truck sales, who commented: “We are delighted that Kings Road Tyres have recognised Bridgestone UK with this prestigious award for our overall performance in supply. We pride ourselves on our customer service and, as a long term partner of Kings Road Tyres, this shows that they value our partnership.”
Adrian Bader, managing director of Kings Road Tyres, explained: “This award is in recognition of the tremendous support received from Bridgestone’s sales team and all other departments. Bridgestone’s professionalism and service was of the highest degree and goes to show that two companies working together in partnership can be truly successful.” Personnel from several departments were asked to rate suppliers on areas such as product availability, call centre efficiency, sales personnel customer service, marketing support and the provision of product and staff training.
Analysts: European Truck Market Has Fallen 50% in 1Q 2009
Product NewsEuropean heavy truck deliveries may have fallen by as much as 50 per cent in the first quarter of 2009, “the steepest fall for many decades,” according to Deutsche Bank. Citing anecdotal evidence, the market watchers suggest that demand may be stabilizing at the current level, which could lead to a 50 per cent fall in full-year 2009 totals. This would reportedly return demand to 1995 levels. “There are some signs that European industrial production may trough as soon as Q3, also at 1995 levels. We do not expect truck sales to recover until late 2010/early 2011,” the analysts commented. In the meantime truck stocks are said to be up 23-35 per cent over the last month.
US Tyre Shipment to Decrease More than 6% in 2008, Says RMA
Product NewsAccording to the Rubber Manufacturers Association, US tyre shipments are projected to decline by more than six per cent this year compared with 2007, with a further one per cent decline predicted for 2009. Total tyre shipments were below 300 million for the first time since 1997, when shipments were 290 million units.
The decrease in tyre shipments, says the RMA, reflects the sharp downward revisions in the domestic economic conditions predicted for both the consumer and commercial sectors. Overall, combined OE and replacement tyre shipments for 2008 light vehicle and truck categories are anticipated to decrease by more than 20 million units to approximately 290 million total shipments, compared to the 310 million total shipments in 2007. A further slight decline of approximately three million total units to nearly 287 million total units is anticipated for 2009 as an economic rebound is unlikely to occur until the latter half of the year.
European Truck Market to Fall 20.7% in 2009
Product NewsEurope’s heavy truck market is predicted to slow 20.7 per cent to 255,800 units in 2009 according to some forecasts. According to Automotive World’s research 2009 will prove to be “the worst for truck sales in recent history.” No return to the almost 350,000-unit market witnessed in 2007 is seen on the forecast horizon that extends to 2013. The report also warns that the positive impact on sales derived from a boom in Eastern Europe is now on the wane and that the 2004 EU accession countries “now appear to have entered a replacement rather than a growth cycle.”
RMA Projects 2008 US Tyre Shipments to Decrease 4%
Product NewsTyre shipments in the US are projected to decline by nearly 4 per cent this year compared to 2007, says the Rubber Manufacturers Association. Combined OE and replacement tyre shipment for the passenger/light commercial vehicle and truck segments are anticipated to decreased by more than 12 million units to approximately 298 million, reports the RMA. Such a decline, it believes, reflects anticipated worsening domestic economic pressures for both the consumer and commercial sectors.
Continental Reaffirms 2008’s 26.4 billion euro Sales Target
Product NewsContinental AG has published second quarter financial results reaffirming the company’s 2008 sales projections of 26.4 billion euros, despite the “difficult environment.” Conti’s acquisitions mean group first half sales grew to 13.254 billion in comparison with 8.014 billion in 2007. Company management sought to project the most positive side of the story at a time when the German tyre and automotive supplier is battling to defend itself from an increasingly hostile 11.3 billion euro takeover bid initiated by ball bearing manufacturer, Schaeffler Group; and when tyre manufacturers in general are fighting hard to maintain profitability targets.
While Continental announced strong second quarter passenger and light truck sales, the news was not so cheery in the truck tyre department. Here first half sales fell to 685.4 million euros compared with 706.4 million during the same period in 2007. And what’s worse, second quarter operating income (around 30 million euros) came in 36.5 per cent less than expected, down 45.9 per cent year-on-year. This meant, for the second quarter, the company ran at an operating margin of 4.6 per cent. To put this in perspective the car tyre and ContiTech divisions achieved 13 and 12.3 per cent respectively.
Conti Appoints Three to UK Truck Division Sales Team
Product NewsContinental has added three new staff members to its UK truck division sales team. These new positions, says Conti, have been created to support the division’s growth with dealers and truck operators at both national and regional level.
Zoe Worley joins the company as key account manager, National Fleets. Her previous experience includes account management positions with Lloyds TSB Autolease and Reality Group. Ms Worley will be responsible for developing the Continental brand within key national fleets as well as integrating them with ContiNetwork, Continental’s independent retail network.
