Across the Atlantic they are called tires, while over here we use a “Y” and say tyres. This tag provides the latest tyre business news emanating from the United States of America (USA), whichever way you spell it.
The $1.3 billion sale of American Tire Distributors to TPG Capital has officially closed, according to a Tire Review report. “We are excited to move forward with TPG as our new partner. They recognize the value we have built and they share our vision for a successful future,” said Bill Berry, ATD president and CEO. ATD runs 83 distribution centres serving 37 US states.
Solideal USA has launched new “eco-friendly budget line.” According to the company, the Ecomatic range is “manufactured utilising European technology and has proven to provide long wear in general use operations.” Solideal’s Ecomatic e-smooth and e-traction press-on line is manufactured with a universal rubber compound and recycled steel base bands. The press-on lineup includes all the most common sizes and a lower price solution for press-on forklift applications.
Rubber and tyre industry equipment manufacturer VMI Group has appointed HJ (Harm) Voortman as the company’s new president and chief executive officer. Voortman takes over on 1 July 2010 and succeeds JJ (Coos) Spanjer who held this position since 1992.
Cam Systems reports that it is on the hunt for global business partners, as it launches Cam International, driven by Mike Allen, managing director, and Steve Daly, commercial director. According to the company, the aim is to establish international links and joint ventures that will enable Cam International to expand its technology franchise worldwide.
The automotive parts industry in China has reportedly become the world’s most profit making industry of its kind. According to a survey report produced by AlixPartners, the profits of auto parts enterprises in China topped its counterparts in 2009. Average profit levels were 8 – 10 per cent, which is apparently double the global average. In 2009, the revenue of auto parts enterprises in China is said to have reached 1,140 billion yuan, an increase of 23 per cent over 2008. However, supplier sales are said to ahve lagged behind the OEM growth because of a higher decline in exports. Several major domestic auto-parts suppliers are emerging as winners, with companies entering the top 100 global suppliers by revenue.
However, says the study, in order to maintain their profitability, suppliers need to effectively manage rising cost pressures, upgrade their technology, build their aftermarket capabilities and, significantly, find ways to recruit and retain qualified people in what has become a very competitive labour market.
US consumer confidence rose in May, the third straight month for plus results according to the Conference Board’s monthly survey, says Tire Review. The Conference Board’s Consumer Confidence Index rose to 63.3 in May, well up from April’s 57.7 mark. And consumer outlook for the next six months also rose, reaching 85.3 up from last month’s 77.4 result, the highest outlook result since August 2007.
Tire Review reports news of a US study conducted by Forrester Research that suggests consumers who research products in stores before buying products on a retail website are less satisfied with the experience than consumers who do the opposite. The findings were based on online surveys of 4,723 US consumers conducted in August 2009.
Continental AG has added another championship to its football portfolio. In addition to its global sponsorship of the 2010 FIFA World Cup in South Africa and 2014 event in Brazil, the tyre maker has become a ‘premium’ sponsor of the DFB (German Football Association) Cup in its home market.
Maxxis has put its brand in front of 15,000 performance car enthusiasts this May, attending in force the first round of the Adrian Flux Auto Series “Japfest”, the UK's longest running circuit-based event for all Japanese performance cars. The brand says it took over the platinum village with its bright orange events unit with a 10m Maxxis arch. The stage hosted DJs, the infamous team of Maxxis Babes and three high specification cars to support the Maxxis brand.
Baker Transport of Cornwall has reported that a set of Michelin XDN2 Grip drive-axle tyres have provided 371,000km on a 44 tonne MAN TGA 480 XXL, having been regrooved once in late 2009 at 301,966km. Michelin says the tyres – with 4mm of tread remaining – are projected to cover a further 10,000km before being removed and remoulded into Michelin Remix tyres, which the company says will offer a level of performance similar to that of a new Michelin tyre.
A Financial Times report published today suggests that Brazil could overtake Germany in terms of vehicle sales as early as this year, depending on a predicted 20 per cent decline in Europe’s leading market. Last year, Brazil was the fifth largest market for new vehicles, buoyed by its increasing wealth based on resources, the newspaper says. Quoting senior analyst at PwC Michael Gartside, John Reed writes that the light commercial vehicle market is crucial to this prediction, with Germany still larger in terms of passenger car sales.
Malcolm England, general manager of Unipart’s Garage Equipment Services division and recently appointed president of the Garage Equipment Association (GEA) has promoted quality, safety and service during his president’s speech at this year’s GEA dinner.
Burnley-based online tyre retailer, Fast Tyres Direct has issued a statement suggesting that Bridgestone is having a particularly good season in the motorbike segment, with “88 per cent of [motorbike tyre] sales through the website in the last three months”. The website offers a range of ten motorcycle and car tyre brands, covering all price segments.
American Tire Distributors Inc (ATD) sold $250 million of senior secured second lien notes on the 144a private placement market on 19 May 2010, the IFR financial information service has reported. The news follows the announcement that North America’s largest independent tyre distributor changed hands for approximately US$1.3 billion on 21 April 2010 when Equity firm Texas Pacific Group (TPG Capital) purchased American Tire Distributors from Investcorp, Berkshire Partners and Greenbriar Equity Group.
Sykes-Pickavant Ltd, which manufactures and supplies automotive tools, recently moved premises from the company’s current location in Cannock to a brand new purpose built site in Burntwood, Staffordshire, just a few miles from their existing base. Speaking about the move, managing director Paul Archer said: "Our current site in Cannock has served us well but the move to Burntwood Business Park will reflect more accurately the size and stature of our business. It will also create a better working environment for staff and visitors to our premises."
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