Truck Tyres
Following Michelin’s investor’s day briefing at its Cuneo, Italy factory on 5 October financial analysts suggested that while the good news is that Michelin’s European production is up and increasingly efficient, the company remains over-exposed amidst the ailing demand of the North American markets and conversely not exposed enough in the emerging markets.
Without exception, Chinese tyre manufacturers aim their European market production at the budget segment, where they are most competitive. However the ‘cover charge’ costs for entering the European market – the expensive testing for REACH and the tyre label – plus swelling production costs in China due to raw material and labour expenses are reducing their competitiveness in Europe. Any manufacturer wishing to build up long-term customer relationships and secure a healthy market share without needing to rely upon spot market brokers and purchasers must therefore focus upon their distribution channels and, in particular, deliver a product whose quality is far removed from the old ‘low budget equals low quality’ stereotype. One company already taking considerable steps in this direction is Hangzhou ZhongCe; recently the company allowed its European customers a glimpse behind the scenes at its factory in China and discussed its plans for the future.
Now that its financing appears secure and all pertinent formalities are expected to be sorted out in Brussels any day now, work linked to the “Re Tyre” project is now ready to commence. With the aid of results gained from this study one of its backers, the European retreading association BIPAVER, aims first and foremost to secure the continued existence of medium-sized retreading businesses.
The organiser of the China International Tire Expo, CITExpo for short, views this year’s tyre show in Shanghai positively. Reliable International Exhibition Services reports 7,190 visitors attended the ninth CITExpo, which was held at the Everbright Convention and Exhibition Center. Last year’s show attracted 7,400 visitors. Once again, around 60 per cent of visitors (4,160) came from China, and during the three show days in early September 3,030 international visitors from 103 countries registered. A total of 298 companies used CITExpo to present their products and services to the public, up from 290 the year before. Well-known exhibitors at this year’s show included Cooper Chengshan, Jinyu Tire Group/Evergreen, Guizhou Tyre, Techking Tires, Aufine Group, SD International, Van den Ban and the wheel producer Zhejiang Jingu; these companies occupied 22,000 square metres of floorspace in three almost completely booked out exhibition halls.
Much has happened in the European tyre market in recent times. Last year’s introduction of the REACH regulations has been of particular interest, as is the run-up to November 2012’s tyre labeling. The second of these has been interpreted by many Chinese tyre makers and distributors as being, in practical terms, a trade barrier intended to make entry into Europe more complicated and expensive. Yet the Chinese appear to be responding pragmatically to the ‘problem’ of Europe. During the CITExpo show in Shanghai the opinion was often voiced that no real problem as such exists, rather a challenge to overcome. And as hardly anyone in China doubts success in this area, in future established western manufacturers in our part of the world can expect the presence of even more competitive, driven Chinese companies.
The Conti360° Fleet Services network in Europe is growing; in addition to the service package’s introduction into Hungary next month, Ireland now boasts a Conti360° presence. Continental Tyres has announced the establishment of a fully integrated partner network there, with 23 dealers and 37 sites across the country signing up.
As of October, Continental’s service package for fleet operators will be available in a further European market. The Conti360° Fleet Services package for truck tyres, first established in the core markets of Germany, France, Spain, Italy, Belgium, the United Kingdom, Poland and the Czech Republic in 2010, and extended into Austria and Ireland this year, is scheduled to be launched in Hungary next month.
September’s official launch of numerous additions to the Pirelli :01 Series presented Tyres & Accessories with the opportunity to visit the Italian manufacturer’s production site in Izmit, Turkey, where some of the range is produced alongside passenger car and motorsport tyres. It also gave us the chance to sit down with Ugo Forner, who has worldwide responsibility for Pirelli’s ‘Truck’ business unit, and listen to his views on Pirelli’s plans and the changing nature of the global commercial vehicle business.
Hankook Tire America has officially opened a new distribution centre in New Jersey, reports Tire Review. The new 400-000-square-foot warehouse is Hankook’s fifth in the US – the others are located in Tennessee, Texas, Illinois and California – and it will service customers in the Northeast and Mid-Atlantic regions. The centre’s opening ceremony was attended by some 100 guests, including Hankook Tire America President Soo Il Lee, Frank Gambatese, the mayor of South Brunswick, and Hankook dealers and employees.
Pirelli has now been in the truck tyre business for exactly 100 years and the Italian manufacturer enters its second century in the sector by launching several new products. In mid-September the company introduced three tyre lines that round out its ‘01’ series; the FW:01 and TW:01 for winter conditions, FH:01 and TH:01 long-distance haulage tyres, and FG:01 and TG:01 for construction machinery.
Tire Review notes that Michelin North America (Canada)'s price increase was the continent's 86th in 2011. As of 1 October, the unit is increasing pricing on its Michelin and BFGoodrich medium truck tyres by up to 6.5 per cent. Michelin, BFGoodrich, Uniroyal and MNA’s associate brand passenger and light truck replacement tyres (excluding winter tires) will see increases averaging 4 per cent as of 1 November.
Slovenian tyre brand Sava Tyres – a Goodyear Dunlop brand – launched its new range of 22.5” truck tyres in an event in Ljubljana, including a visit to the Goodyear Dunlop manufacturing facility in Kranj, earlier in the year. The new range, which comprises the Avant 4 steer tyre and the Orjak 4 drive tyre, has been developed to provide enhanced performance and lower cost per mile on both long and short haul transport operations. Goodyear Dunlop also suggested that an upswing in the European truck tyre market would be experienced in the eastern half of the continent.
Techking has launched what it calls a new economic entry level TPMS for truck tyres. Compared with the previous version, the new TPMS, TBR‐03, reportedly has the following advantages: 20 per cent cost saving over previous version (for 10 tyre trucks); upgraded monitor kit, holder for easier installation and “much better” data collecting capacity. According to the company, the platform of Techking TPMS is OE approved, having passed the SAE test in US.
Years after the credit crunch bit and the recession took hold in the North America and Europe, financial analysts are asking if the de-segmentation phenomena that saw cheaper tyre sales increase could be coming to an end. So does this mean premium tyre sales are on the up?
Three members of the board of KRT have completed a management buy-out of the group – UK & Ireland (financed by GE Capital). The new company – Kings Road Tyres Group Ltd will be led by Adrian Bader (managing director), Mark Cooper (commercial director) and Simon Lister (financial director). Bader told Tyres & Accessories that the transition of company ownership is proceeding “seamlessly”, since “most of the people that were running the company before will be running the new company”.
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