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Auto Service – Not All The Hopes Realised

In the 80s and 90s a lot of tyre dealers invested in auto service knowing that there were limits: without employing a master mechanic for car repairs, certain works are not allowed to be carried out. But many dealers cared for the qualifications of their employees, sent them on courses in order to get the permission to do the typical works that car service stations normally do. Some tyre dealers were on their way to making a success of auto servicing. But there are also examples of diversification going in the wrong direction. Some fields were portrayed to tyre dealers as being the business of the future but which failed later: Steering wheels? The airbag killed this business. Batteries? Today most are maintenance-free. Exhausts? Better quality steel has led to better rust-proofing. Numbers of car services will decrease over the next few years, meaning that tyre dealers, independent car repair stations and licensed car dealers will have to fight much harder for the customer than they do today. Generalists, who attempt to do all the work around the car, will have to invest a lot of money in their outlets. Specialists – for example in tyres – can recommend themselves to the customers with their special services and products whereas car service stations might be overstretched regarding an increasingly complicated tyre business because of the progress in electronics, such as tyre pressure warning system. Easy solutions are not available. But it is dangerous to follow each trend of diversification, to invest a lot of money merely in order to realise one day that you have built up a new service in a specific auto part, only for the demand to wane and another part comes into focus. However, in twenty years’ time cars will still need tyres, and who will replace the defective tyres if not a tyre dealer?

30th November 2001/by Tyrepress Editors

The French Connection: Arc-en-Ciel

The French tyre trading network Arc-en-Ciel claims to be the largest European chain of independent tyre dealers. In 1986, there were only twelve members, but this has grown to a network of 850 outlets in Europe, 386 of which are in France. Every year, 20 new members join the group, it is claimed. In France alone, Arc-en-Ciel distributed around 2.9 million tyres in 1999, with the group holding 11% of the car/van tyre market, 9% of HGV and 18% of the agricultural tyre market. The Arc-en-Ciel branding is memorable – the name means rainbow in French – and this is carried over to a range of own brand products, which, of course, includes tyres that go under the name Eurotyre. As Arc-en-Ciel spreads across Europe, its strength increases. In addition to the French network, the group has a presence in six European countries, including 71 depots in the Benelux and 168 in Spain. Further expansion is envisioned in Portugal and in eastern Europe. Besides its fast-fit operation, Arc-en-Ciel has introduced a 24-hour replacement tyre service for hauliers in 14 European states.

30th November 2001/by Tyrepress Editors

The Truck Tyre Business

That the heavy truck tyre business is changing dramatically at all levels cannot be denied. Tyre dealers doing this business almost as a sideline in their local markets are facing a decrease but they are not too sad about this development because it is becoming harder and harder to earn money with truck tyres. This sector of business is decreasing because, for hauliers and their fleets, an enormous process of consolidation is taking place. In the future we will have tyre dealers saying good-bye to the truck tyre business and tyre dealers being strong in car and truck tyres. The media predict that goods traffic will increase significantly in coming years. Tranportation by waterway, railroad and especially road haulage will grow. But that might be a scenario for the longer term, because now we can read predictions of lower new truck registrations of about ten percent this year, and also next, in most European countries. But the stock lists seem to be stable because hauliers use their trucks longer (although they would prefer to buy a new one but it is too expensive) and modern trucks have a greater life expectancy than previously. The truck market is undergoing a process of structural changes. Mega fleets have arisen, absorbing a lot of the medium-sized and small hauliers. For the big fleets the four premium tyre brands Michelin, Continental, Bridgestone and Goodyear dominate. Their second brands are cheaper but good quality nevertheless. At the budget tyre level, brands like Toyo, Hankook or Marshal compete with the third brands of the four big market players for 15 percent of the market.

30th November 2001/by Tyrepress Editors

About the 4×4 Tyre Market

The market for off road vehicles is constantly changing; also the market for suitable tyres and wheels. In the 80s Japanese car makers Toyota, Nissan, Suzuki, Mitsubishi and Honda created this market with 4 wheel drive vehicles able to be used on rough terrain. Now the 4×4 cars have become more suitable for use on the streets and the term Sport Utility Vehicle (SUV), replaces the former “Off Road Vehicle”. Car manufacturers like Ford, Chrysler, BMW and Mercedes have discovered that this has become more than just a niche market. Explorer, Cherokee, X5 and M-class are closer to luxury cars than those for use off the beaten track. Some tyre manufacturers have developed their off-road programme in this direction, whilst others have directly used the platform of existing passenger car tyres for this new generation of vehicles. The 4×4 tyre market will grow within the next few years as a lucrative market segment for the tyre industry, tyre dealers and also for the light alloy wheel business. Typical consumers in the 80s, with sparsely-equipped Suzukis, were not able to invest much money in tyres and wheels, but nowadays drivers of these cars are members of a more affluent society. The trends are very similar to passenger cars, with sizes becoming larger, faster, V, W, Y and Z speed ratings and higher load indices.

30th November 2001/by Tyrepress Editors

Portrait Of Marangoni Tyre GmbH

The German subsidiary of the Italian tyre producer Marangoni was founded six years ago in Wedel near Hamburg. The foundation of Marangoni Tyre GmbH took place at the beginning of May 1999, with General Manager Dirk Rohmann and Area Manager Martin Werner the only two people to work for the German company daughter up till now. One of their most important tasks is to increase the low awareness and attention the tyre brand receives from the end users at the moment. It was for this reason that the company held an international press conference in Rapallo in March 2000 that was attended by more than 100 journalists from all over Europe. The effect was a very positive one; Marangoni tyres have been represented in some summer- and winter-tyre-tests of international magazines, in which they performed quite well. The number of countries that are managed from Germany has increased from 16 to 22 in the previous one and a half years. New countries are: Ireland, Iceland, the Netherlands, Slovakia and Romania. The present market share in Germany amounts up to one percent – representing 400,000 tyres. The products are delivered directly on trucks from Italy. Twelve distribution partners handle the local distribution in Germany. In the western part the coverage is more ore less complete, whereas in the eastern part there are still some holes, that are due to be filled by spring next year. Furthermore Rohmann and Werner want to employ a third person who will keep a close contact with the 250 German tyre dealers where Marangoni products are sold.

30th November 2001/by Tyrepress Editors

Racing fever in Germany now – Michelin Goes Formula One

Members of the German buying association of free tyre dealers “EFR” met for their annual meeting at the former Expo exhibition centre. Doors were closed when they reviewed the past year and analysed the weak points, as well as when they tried to set the agenda for the year 2001. No doubt EFR is known on the market as a “Michelin buying association”, which, regarded from the opposite side, is as wrong as if FRI were to be called a “Goodyear buying association”. But this is the wrong place to discuss both sides’ differences. In fact, EFR is representing a group with a very friendly relationship towards Michelin and therefore selling their products as a priority. And of course Michelin itself is doing everything to satisfy the EFR dealers’ demands, as with more than 300 specialised tyre dealers they form a solid distribution basis for their products. After being in low gear for several years, Michelin has had a brilliant start to the new millennium, while profiting from the seeds they have been sowing for the past two or three years. However, until recently, with their first brand the French have steadily been losing market shares all over Europe and most of all in Germany – although no loss of quantity and admittedly from a high ranking – now they are ready for the battle with the competition in their home market Europe, more than ever. As Michelin wants to win the race, Patrice Kéfalas could not miss a favourable opportunity: “Michelin goes Formula One” was the message that he announced in front of the EFR tyre dealers. Hence, the race is on at all levels. With Michelin tyres Patrice Kéfalas does not only want to win for merely for the sake of being the winner, he also wants to realise an image profit, which should end up in either greater quantities or better selling prices too between industry and trade or trade and consumer, or even both.

30th November 2001/by Tyrepress Editors

team Reifen-Union Cooperates with VRG

The two cooperatives team Reifen-Union/Top Service Team KG (currently about 400 outlets) and Vereinigte ReifenFachhändler GmbH (VRG; currently about 200 outlets) have agreed a far-reaching cooperation on all levels, including the servicing of large customers and fleet management. An important ingredient is the immediate creation of a company called “Team Reifen Partner” GmbH + Co. KG (TRP), which will gradually incorporate both VRG and new companies as members. VRG members will still have to approve this measure officially in a meeting at the end of January. The team group, to date with a membership of 25 regionally successful tyre traders and as such the number one marketing group in the tyre market, will thus embrace also smaller and medium-sized tyre trading companies, whose members have already given their official consent to the plan. The new group based on the team/VRG cooperatives with more than 600 outlets is set to expand its base. An essential precondition for tyre dealers with local and regional operations and aspirations also to serve trans-regional customers, especially fleets and leasing companies, is full geographical coverage throughout Germany. At the same time the new partners want to coordinate their procurement and stocking policy and improve their purchasing terms and conditions.

7th December 2000/by Tyrepress Editors

BRV Agrees To Cooperate With ZDK

During its 14th annual meeting, the German tyre dealers association BRV voted for an intensified cooperation with the association of the German passenger car dealers and manufacturers (ZDK). The aim of this cooperation is to increase the political influence and to enlarge the knowledge base. The BRV currently has 1,150 members and the ZDK has 48,000.

7th December 2000/by Tyrepress Editors

VRG Ends Consultations With Team

Surprisingly, Team and VRG could not come to an agreement in some major topics concerning the co-operation of the two German groups of tyre dealers. As a result VRG ended the consultations for the present.

7th December 2000/by Tyrepress Editors

Fewer Visitors For “Tyres 2000”

According to Peter Hülzer, CEO of the German national tyre dealers association BRV, the Exhibition “Tyres 2000” in Essen attracted a total of 15.000 visitors. This is 1,100 visitors fewer than for the ’98 exhibition. The main reasons for this development are reckoned to be the later-than-usual date of the exhibition, the start of the holiday season in some parts of Germany and in a period of very hot weather during the exhibition.

7th December 2000/by Tyrepress Editors

Record BRV Membership

Membership of the German tyre retailers’ association BRV (Bundesverband Reifenhandel und Vulkaniseur Handwerk) reached record levels in January, when 82 new tyre retailers joined. The association now has 1,115 members with 1,443 outlets, which represents around 73 per cent of the 3,500 tyre dealers in Germany.

7th December 2000/by Tyrepress Editors

Goodyear Wins BRV Awards Again

Once again, Goodyear has won the Golden Award from the BRV – the German tyre dealers association – for the passenger car and truck sectors. The prize reflects market- and customer-driven behaviour.

7th December 2000/by Tyrepress Editors

“Shaping the Future Together” – Pirelli Dealer Forum in Hamburg

With the theme “Gemeinsam Zukunft gestalten” (“Shaping the Future Together”) a Pirelli dealer forum, one of six held in various German cities, took place just outside Hamburg at the end of March. In a number of speeches Pirelli explained how it wants to “shape the future”. Dr. Paolo Masera, for instance, managing director of Pirelli Reifenwerke as well as being responsible for the Italian manufacturer’s original equipment business worldwide since the beginning of the year, gave the tyre dealers an insight into Pirelli’s OE activities. He was able to tell them with pride that Pirelli had gained 254 homologations since 1996, no less than 169 of them in speed categories V and above. Last year almost ten million tyres went to European original equipment. With six or seven factories the Italians say they cover 95 p.c. of the OE business and 60 p.c. of the replacement market as well. With 12 p.c. European market share in ultra-high-performance tyres the company claims place three behind Michelin, the market leader, and Continental. Dr. Klaus Betka, board member with responsibility for production, spoke about the new manufacturing process MIRS (Modular Integrated Robotized System), while Roland Steindorf, managing director of the Sales Marketing Company, spoke about the possibilities and opportunities of “e-commerce”, i.e. selling on the internet. Within the framework of the so-called “e-Pirelli Project” the Italians plan to invest roughly two trillion lire in all divisions of the group on internet applications and new technology by the year 2002. Details are explained in the April edition of NEUE REIFENZEITUNG.

7th December 2000/by Tyrepress Editors

Swiss Tyre Dealers Association Joins BRV

The Swiss Tyre Dealers Association RVS (Reifenverband der Schweiz) has joined the equivalent German organisation BRV (Bundesverband Reifenhandel und Vulkaniseur-Handwerk). RVS represents 43 tyre dealers in Switzerland.

7th December 2000/by Tyrepress Editors

Change At Austrian Dealers Association

The Austrian Tyre Dealers Association VRÖ (Verband der Reifenspezialisten Österreichs) has appointed a new President: Former Vice President Ing. Walter Antosch succeeds Ing. Günter Deschka.

7th December 2000/by Tyrepress Editors