News from the tyre wholesale sector
Pirelli Tire North America has announced the addition of Western Power Sports as a selected aftermarket distributor for Pirelli motorcycle tyres in the United States. Western Power Sports is a wholesale/distributor of motorcycle parts and accessories with warehouses in Idaho California, Tennessee and Pennsylvania.
Grouptyre, the exclusive UK distributor of Federal brand tyres, has announced the prize winners of the first part of its 2009 Red Letter Day promotional campaign, in conjunction with the Taiwanese manufacturer. RIKFIT Tyres in Kings Norton, Birmingham, supplied by Grouptyre member Car Tyrestore was awarded first prize of a £500 Red Letter Day; Tyrecare of Kings Heath supplied by ETB and Top Tread of Rotherham supplied by NE Wholesale, claimed the runner-up prize of Red Letter Days to the value of £250 in the prize draw.
Following an all-expenses paid trip to Thailand, courtesy of the Maxxis Rewards Scheme, Grouptyre sales director Paul Hollows gave a vote of thanks to the brand, which is sold exclusively through Grouptyre wholesalers in the UK: “I know from conversations during our week away and since that the retailers who went to Thailand with Maxxis got a great deal out of the trip, especially the visit to the Maxxis Rayong factory, which helped them really appreciate the commitment Maxxis makes to manufacturing quality products. Congratulations to Maxxis on an excellent initiative and here’s to continued success in 2010.” Hollows accompanied the retailers on their journey through the country from November 21-28, during which they spent time in the beach resort of Pattaya and the bustling capital city of Bangkok.
Christmas arrived early for 13 lucky tyre retailers who will receive a luxury hamper and £400 in Argos gift vouchers after winning the final Maxxis Rewards quarterly prize draw of 2009. “The Maxxis Rewards programme helped promote the brand, not only boosting Maxxis PCR sales throughout the year, but also helping us to develop key relationships, as retailers contacted us to find out more about adding Maxxis to their range and some of those that already offered Maxxis were encouraged to recommend it to their customers as a quality, value for money tyre,” says Grouptyre sales director Paul Hollows.
As a man of 40 experience in the tyre trade – and with it the knowledge of three recessions – Tyre Wholesalers Group chair Ashley Croft is in a good position to comment on the effects of the current financial crisis (which, depending on whose opinion you are heeding, may or may not have come to an end). In his speech at the 2009 TWG Annual Lunch, Croft described the past year as a “harsh period”, but made clear that the recession had hit hardest in the tyre business where manufacturers were most committed to supplying original equipment. However, he stated, “replacement market traders have once again proved themselves to be relatively recession-proof”.
In what Tyre Wholesalers Group chair, Ashley Croft called, “a clear challenge to the tyre industry”, Jim Rickard – managing director of Michelin Tyre plc – called on the members of the TWG to match the “sophistication…of the manufacturers within the whole supply chain”. Speaking at the Group’s Annual Lunch in Droitwich Spa, Rickard expressed uncertainty about the way information about tyres is transmitted to customers: “I’m not sure the message about performance characteristics gets through at the point of sale.” He argued that new legislation – exemplified by forthcoming tyre labelling laws governing noise, wet grip etc – was making visible to the consumer proof of a tyre’s superior characteristics over rival brands, thus allowing components of the supply chain to justify to customers the relative cost of one product to another.
Trelleborg Industrial Tires Europe has appointed Watts Tyre Group as the sole distributor of its industrial tyres range in France. Under the terms of the new agreement, Trelleborg Industrial Tires Europe will transfer its France-based industrial tyre operations to Watts Tyre Group. As a result of the deal, Watts will formally divide its French operations into a wholesale distribution business and a specialist service operation. The service business, which is reputed to be the largest in France, will trade under the Interfit name. Observers suggest that, together with the Trelleborg distribution agreement, this will help differentiate Watts service and distribution operations and therefore help strengthen the service propostion.
According to Trelleborg, the new strategy will yield “overall advantages to the French customers.” For its part, Watts’ official statement on the matter said: “Watts will integrate Trelleborg’s industrial tyres activities with their own and will now distribute Trelleborg tyre products alongside the Watts product range.”
Last month tyre and aftermarket systems supplier Signal Extraprise opened a European office with the UK and Irish markets the primary focus. Since 1992 Signal Extraprise has developed information systems that support tyre outlets and auto service centres across North America.
In 2006, Signal reportedly set out to create a revolutionary product, targeting all tyre and vehicle-servicing enterprises in the automotive aftermarket. That work culminated in 2009 with the launch of eXceed an offering designed to help service providers to remake their businesses based on the very different marketplace they face now. Instead of, for example, focusing on the mechanics of ordering, quoting, work orders and the like (which are all still important and included), Signal built a technology to help the dealers transform their stores into engines of growth and profitability.
Revenue at Michelin & Cie. is not expected to increase next year. Managing partner Michel Rollier has expressed his caution on growth prospects due to uncertainty about the automotive industry’s recovery and rising raw material costs.
Following Hawleys Tyres Ltd’s winning of the oldest tyre dealer in Britain title, Tyres & Accessories/tyrepress.com has compiled this overview of the company’s extensive history: Hawleys Tyres was formed by Ernest Hawley, a taxi driver who established the business by selling tyres to other taxi drivers in the area in 1910. The business grew gradually as vehicle take-up increased, before Ernest’s son Reg Hawley took over during the 1940s, 1950s and 1960s. During this period more depots were opened before Reg's sons David and Martin expanded the business in the 1970s. The company is now managed by Martin Hawley, his son Simon and David’s son Tim. The business employs 50 people at five branches in and around Sheffield.
According to company literature, Ernest always had an interest in motorcars, and was one of the few who pioneered motoring in its earliest days. A foreman engineer at Oughtibridge Silica Works by profession, his links with the tyre trade began when he started a motor taxi service from outside a shop that the family owned in Wadsley Lane, in the Owlerton district of Sheffield. The taxi side of the business thrived and Hawley became known for doing a lot of his own repairs. This includes the mending of punctures, which were numerous in the early days, and the fitting of new tyres he obtained. The tyre business began when car owners came to him for help with punctures and even brought tyres bought elsewhere to him for fitting.
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An entertainment package comprising an iPod, Nintendo Wii and DSi consoles, and a portable DVD player awaits the winners of the latest Maxxis Rewards quarterly prize draw. Tyre retailers who sign up for the dealer support programme are automatically entered into a series of quarterly prize draws and also have the opportunity to earn Argos vouchers and Maxxis branded promotional clothing and accessories. Entries are linked to a retailer’s purchase of Maxxis car, van and 4×4 tyres during the appropriate promotional period, and previous Maxxis Rewards winners have enjoyed LCD or Plasma TVs and £500 worth of gift vouchers. The prize for the final quarterly draw has been confirmed as gift vouchers to the value of £400 and a Christmas hamper.
Grouptyre has announced the winners of its Red Letter Day promotion, a national initiative set up in conjunction with value brand Federal, for which it is the exclusive UK distributor. First prize of a £500 Red Letter Day goes to RIKFIT Tyres in Kings Norton, Birmingham, which is supplied by Grouptyre member Car Tyrestore. ETB customer Tyrecare of Kings Heath and Top Tread of Rotherham, supplied by NE Wholesale, each won runner up prizes of a Red Letter Day experience to the value of £250.
Several media sources are now reporting that last year’s ruling by the US Department of Commerce that slapped often huge antidumping duties on certain OTR and farm tyres imported from China will get another look. On September 18, the US Court of International Trade ordered the Commerce Department to review its ruling and the countervailing duties it applied to a host of tires imported from China. The court said the Commerce Department’s duty calculations were in error, and in cases were effectively double what they should have been. The court gave the Commerce Department 90 days to clear up the duty discrepancies. Tyres & Accessories/tyrepress.com first reported this story on 25 September, but following the collapse of GPX International last week US-based Tire Review draws a parallel between the two stories.
Tire Group International (TGI) has opened a new sales office in Houston, Texas headed by Tom Wilbur. Wilbur comes to TGI with over 12 years experience in the tyre industry, having worked for firms such as Area Wholesale Tire and Tire Dealers Warehouse.
October's Tyres & Accessories issue contains features on the online tyre business and wholesaling. Subscribers, click more to read the e-magazine online.
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