News from the tyre wholesale sector
During the first couple of months of 2012 Belgian firm Deldo has, like others active in the European tyre wholesaling scene, observed that this year may be different – more complicated – than the past couple of years. However the Antwerp-based wholesaler is not unduly concerned; during a recent visit, Deldo’s international sales and marketing manager Rutger Veerman discussed the company’s growth plans for 2012 and beyond.
When Tyres & Accessories last caught up with Tire Group International a year ago, the Miami, Florida-based wholesaler was able to report a highly successful 2010, with revenues up 35 per cent year-on-year and unit sales climbing 26 per cent to around 1,200,000 pieces. Back then company CEO Antonio Gonzalez said he expected continued growth in 2011, and TGI has delivered on this forecast; last year the US wholesaler achieved a 25 per cent increase in unit sales and revenue grew by a third. And while we’re currently less than a quarter of the way through 2012 and the year may yet throw a surprise or two in our direction, recent and current developments at TGI indicate the company will once again report strong annual growth.
Danish firm Starco wears several hats. The company was once best known for specialising in tyres for wheelbarrows and hand-powered vehicles, and during its 50 years in the business it has also gained a reputation as a manufacturer – initially of steel wheels and small tyres, and very recently as an industrial tyre maker – the company’s Solid tyre factory in Sri Lanka is now in operation. And another, very important hat Starco wears is that of wholesaler.
Following the crazy scramble for tyres in the winter of 2010/11, when availability was low and some sizes couldn’t be purchased at any price, in 2012 the European market now faces the reverse situation – tyres are there to purchase but unsold stocks are spoiling many people’s appetite to buy. To retain a competitive edge in such changeable conditions requires flexibility; and this is precisely the quality that Dutch wholesaler Van den Ban prides itself in possessing. Flexibility in its various forms was a key theme when Tyres & Accessories recently spoke with commercial manager Cyril Versteeg and Kees Nieuwland, who is responsible for the company’s UK and Ireland sales during a recent visit to the company’s headquarters in Hellevoetsluis, not far from the major port of Rotterdam.
Lassa reports it will showcase its entire range of European-market summer and winter passenger car, 4×4, light commercial vehicle and truck tyres at Reifen 2012; in the spotlight on the Lassa stand will be the Phenoma, Lassa’s latest summer high performance tyre. Developed by Brisa’s Research and Development Centre using the know-how gained from the experiences of the award winning Lassa Rally Team over the past decade, and available in European markets in 11 sizes ranging from 16 to 18 inches in diameter since May 2011, Lassa says the Phenoma is a popular choice in sport and prestige segment for upper class automobiles and tuning vehicles.
This month US wholesaler Tire Group International celebrates 20 years in the business. On 3 March 1992 the Miami-based company opened its doors and began trading; TGI says its main objective since that day has been to offer its customers the entire spectrum of tyre sizes and patterns at reasonable price points, to build long-term relationships with customers and suppliers and to exceed their expectations every time they deal with TGI. For this reason, TGI says it has developed a very close relationship with all its partners around the world.
A year ago the newly appointed managing director of Euro-Tyre BV, Frank van Leeuwen, reported that the Netherlands-based wholesaler enjoyed growth in excess of 25 per cent in 2010. Yet the company, like many in the business, needed to remain on the ball in order to avoid the widespread tyre availability issues brought on by an improving economy. Now, 12 months later, Euro-Tyre says that while the problem of availability and supply lies in the past, the pattern of strong growth has continued.
Brisa Bridgestone Sabanci Tyre Manufacturing and Trading Inc tyre brand Lassa is presenting its products on a 75m2 stand at the Geneva International Motor Show. Halit Şensoy, director of Lassa International Sales and Marketing says the show “provides an excellent opportunity for us in order to share the technology, design and philosophy behind our brand.” Visitors to Lassa’s stand can see the brand’s range of summer and winter tyres, its new range of ultra high performance and 4×4 tyres and its light truck and van products. Lassa said the main focuses of the stand are the Phenoma, Lassa’s sports tyre, and the Competus H/P, for passenger cars of all sizes.
Merityre has introduced Cam Systems’ Wholesale Customer Relationship Management (CRM) software. The system is designed to help the tyre specialist improve its customer intelligence and data reporting specifically for its retail customer base, according to the software provider.
US-based company TBC Corporation, which calls itself the country’s largest marketer of tyres for the automotive replacement market, has acquired automotive service provider Midas for approximately US$310 million. The all-cash transaction will see Midas shares change hands for $11.50 each, a price that represents a 75 per cent premium over Midas’ closing price of $6.58 on 11 August 2011, when Midas announced it would conduct a strategic review process, and a 28 per cent premium over the closing share price as of 12 March 2012. The proposed transaction has been unanimously approved by both companies’ boards of directors. In addition, Midas chairman, president and CEO Alan Feldman has signed a tender and voting agreement in support of the offer.
Cam Systems has appointed Dave Ritchie to lead the company’s data management development. His initial priority is the compilation of inbound tyre data from manufacturers and importers into an online tyre catalogue which will underpin the managed service Cam Systems is offering its customers to help them steer their Tyre Labelling compliance.
"Treasury officials are trying to spin their way out of the current debate over fuel duty by suggesting that they are giving £4 billion back to the motorist by deferring previous duty increases," said Brian Madderson, RMI Petrol Chairman.
On the 24 February The Financial Times stated that 'faced with a virulent media campaign and public protests at Westminster this month in favour of fuel duty cuts, the chancellor’s aides say he has provided more than £4bn to help motorists and cannot afford anymore.'
Cambrian Tyres is investing “substantially” in the development of a wholesale customer relations management (CRM) and virtualised server package with Cam Systems. According to a statement from Cam, Cambrian Tyres is continuing its partnership with the software solutions provider, providing it with more effective customer connectivity and future proofing its business for the next 10 years.
Estonia has become the first Baltic country to join the point S organisation. The network will be represented in Estonia by Rehvid24, which has set up Punkt S Eesti, a specially dedicated company for this project. Point S Development describes Tallinn-based as being “a major player on the Estonian tyre market having retail, wholesale and fleet operations.”
CDP Group’s CEO Andrea Reggi calls 2011 "a year of consolidation", which ended with success. While the turnover remained constant at about 38 million euros, net profit came in at more than 2 million euros, an improvement of 15 per cent over the previous year and a percentage of profit on turnover of more than 5 per cent. Reggi hit the targets he stated in an interview with PneusNews.it last year: to strengthen the company’s financial position, increasing the return but not the turnover. "In 2011 I wanted to understand if the 38 million euros in revenue, achieved in just three years, was a temporary episode due to specific factors such as winter 2010," said Reggi.
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