News from the tyre wholesale sector
(Akron/Tire Review) Long-time TBC Corp. executives Ken Dick and Orlando Wolford have been elected to the company’s board of directors. Dick is currently president and CEO of TBC’s wholesale and private brands divisions, while Wolford is CEO of TBC’s company-owned retail stores division.
Ashley Croft, Warehousing, Logistics and Wholesale Sales Director of Micheldever Tyre Services, has resigned from the company. Ashley Croft was one of the original six members of management involved in the Buy Out of the company in February 2006.
The United States military has awarded Michelin Americas Truck Tires a 10-year $1.7 billion contract to provide ground tyres for every type of wheeled vehicle for all military branches (Army, Navy, Air Force, Marines) around the world. This contract is in addition to the recently awarded $700 million-plus contract for military aircraft tyres. Michelin is already the majority supplier of US Army tactical tyres. The company invested $16 million to increase military tyre production in order to meet the surge in demand related to Operation Iraqi Freedom.
In contrast to car tyre sales, the UK motorcycle tyre market continued the pattern of growth it has demonstrated in recent years in 2006. Europool figures put the total market size at about 775,000 units (not including non-EU produced tyres and grey and parallel imports), up around 2.2 per cent on 2005. But industry sources are expecting more next year and are projecting that European produced tyre sales will reach 800,000 units (up 3.22 per cent).
Stapleton’s, one of the largest UK passenger car tyre wholesalers has launched a revised Nexen Key Dealer Programme. The scheme, aimed to reward valued customers, includes benefits available to those registered onto the programme. Members will benefit from a personalised reward scheme, can enjoy preferential purchasing prices, in store support in the form of leaflets and posters, branded merchandise and lifetime guarantees on products. Each member will also receive a dealer reference catalogue.
(Akron/Tire Review) Michelin Aircraft Tire Co. has been awarded a 10-year, $700 million-plus contract to supply tires to the U.S. military. Michelin officials said it was the company’s single largest contract ever.
Under the Defense Department Tire Privatization Initiative, Michelin will handle the wholesale supply, storage and distribution for all aircraft tires used by the U.S. military.
American tyre purchasers have just become even more spoiled for choice following the announcement that a new online retailer – Discountwheeloutlet.com – has opened its virtual doors to the public. Discountwheeloutlet.com, who claim to sell to the public at wholesale prices, stock more than 10,000 custom wheels for cars, trucks and SUV vehicles.
Due to their large stock levels, the company is able to offer their customers same day shipping, and can even offer customers wheel, tyre and accessory packages including free mounting and balancing.
According to the company, Discountwheeloutlet.com is the largest single warehouse distributor in the Pacific Northwest area of the US.
With farming becoming ever more sophisticated and the equipment used increasingly specialised, it is important that the right tyre for the job be readily obtainable at short notice. National independent tyre wholesaler RH Claydon Ltd boasts a comprehensive range of tyres to meet all needs, and agricultural users looking for a specific tyre are by no means overlooked – a large range of major brand agricultural tyres are always in stock at the company’s four sales and service/distribution branches in England and one in Scotland. Brands stocked include: Goodyear/Dunlop, Continental, Semperit Agricultural, Trelleborg, BKT/Supreme, Titan, Mitas, Kenda, and Duro.
In order to achieve his goal of taking Michelin to the number one spot in the UK two-wheel market by 2010, Michelin Tyre Plc’s head of Two-wheel Olivier Gros, has plans to overhaul the marketing and distribution of its premium level products. Perhaps the most eye catching announcement is the news that Michelin will release a new dual compound tyre, following the success of the Power Race and Pilot Power 2CT. T&A has seen a preview of the new sport touring tyre, which was exhibited at the Motorbike Trade Expo earlier in January. Details are sketchy at the moment, but external independent testing appears to suggest that the new dual compound tyre will last 10 per cent longer than any of its competitors. But how does the new product compare to the fuel saving and tread life characteristics of the company’s car and truck ranges?
Soopa Toobs, a leading niche product supplier, reports that has widened it speciality offering. The tyre portfolio has been widened to include agricultural, industrial, lawncare, ATV and utility vehicle tyres, from such household names as Carlisle, Trelleborg, Goodyear, Dunlop, Eurogrip and others. The company also opened a new warehouse this year, which increases warehousing capacity by 300 per cent.
Stockbrokers and dealers said existing Dunlop Nigeria shareholders and new investors are considering using the company’s forthcoming share offering as a way of taking strategic stock positions.
After 30 years of experience in the tyre business, Viking continues to improve its service. In the last year the company has made significant operational changes to improve customer service levels including a complete restructure of Viking’s van runs to increase delivery frequency for customers. The large-scale wholesale operation runs eight warehouses and a fleet of over 100 specialist delivery vehicles, Viking provides a flexible and responsive daily delivery capability throughout the country.
Viking’s popular online ordering system provides customers with real time access to tyre stock, tyre pricing and account management information. The facility has been enhanced with the addition of Viking’s entire exhaust range and has been promoted in the trade press throughout the year.
In his inaugural speech as chairman of the NTDA Tyre Wholesalers Group (TWG), Ashley Croft did not waste any time in highlighting the issues he wishes to address during his tenure. Referring to certain manufacturers’ use of logistics companies and the place of wholesalers in the UK tyre business, Croft opened a discussion to which there is no quick resolution – calling on manufacturers to resist the urge to increase their direct market control and rather further their relationship with the professional wholesale membership that the TWG represents.
In his own words Ashley Croft is “a great believer in not perpetuating things if they have served their purpose.” Croft commented that there is still “unfinished work to be done” and the fact that he accepted immediate past chairman Peter Gaster’s invitation to take over at the TWG would suggest that Ashley Croft remains a firm believer in the usefulness of the group.
Passenger car tyre replacement markets were “very strong in October,” according to Michelin. The research shows that the European replacement market sales grew 9 per cent (+2.9% year-to-date); and 4 per cent in North America (-3.2% year-to-date). Truck tyre sales also grew in the period, according to report, although not as much as the passenger car market.
East midlands-based We Sell Tyres (wholesale) company is moving its Newark wholesale operation to larger premises situated in Colwick, Nottingham. The move is due to take place in early 2007. The new premises which cover a total of over 40,000 square feet are within easy reach of central Nottingham and will further improve the company’s stock holding facility and existing delivery service into Derbyshire and surrounding areas.
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