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Looking forward to recovery – be it L, U or V-shaped

Anna; Pexels

Last month this column considered the range of 2020 market projections that existed. In short, as the column concluded, the consensus is that tyre demand will decline somewhere between 15 and 26 per cent during the course of this year. However, such a conclusion may also be on the conservative side. Certainly, when you talk with tyre wholesalers and distributors on the ground, some of those that didn’t opt to close their doors for a few weeks experienced even more marked declines in the short-term. Reports of tyre shops running on demand 70 to 75 per cent less than pre-lockdown levels are not uncommon. And yet, as lockdown eases across various UK and European markets – as well as beyond – the focus is quite rightly shifting to recovery.

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Related news:

  1. The tyre business is keeping countries rolling
  2. Tyre demand declining 15 to 26 per cent in 2020
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  4. More than half of UK garages closed, similar figures across Europe
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UK car manufacturing faces long wait to return to normal levels – KPMG

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SMMT

While UK car manufacturing is beginning to reopen production lines after producing just 197 units in April, Andrew Burn, partner and head of Automotive at KPMG, said the road ahead is far from clear, despite the UK’s car dealerships being given the green light to open. Export markets, uncertainty about demand, and the challenge of cross-border supply chains all provide significant headwinds for the country’s car makers.

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  1. SMMT figures ‘extremely worrying’ says KPMG
  2. UK car production falls 14.2 per cent in 2019
  3. Auto industry ‘far from out the woods’ despite car sales growth – KPMG
  4. British car manufacturing in decline, based on sustained domestic demand fall
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15 commercial vehicles manufactured in April, down -99.3%

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SMMT

Only 15 units ran off UK commercial vehicle (CV) production lines in April, -99.3 down year-on-year.The Society of Motor Manufacturers and Traders’ (SMMT) chief executive, Mike Hawes said that while unsurprising, the figures “illustrate the incredible challenge facing the UK commercial vehicle sector” as a result of the Coronavirus lockdown.

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  1. UK commercial vehicle production falls in April
  2. UK commercial vehicle production down 11.7% in September
  3. Slight decline in January LCV sales
  4. UK commercial vehicle production stable in October – SMMT
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Micheldever focused on supporting tyre dealers’ survival during lockdown

‘Kick-starting your business’ webinar screengrabTyre Industry Publications Ltd

During our recent “Kickstarting your tyre business webinar”, the panel shared lockdown stories of how they have survived and even experienced success during these difficult times. For his part, Graham Mitchell, wholesale director of Micheldever Tyre Services, shared details of how his company moved from its role as a leading wholesaler to a more support-orientated position. For those pivoting into this new role during lockdown, far from having less to do, this meant being even busier than normal despite wholesale volumes dropping to 25 per cent of normal levels during the depths of lockdown (levels are much more normal now, however).

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  1. Tyre distributors come together for ‘Kick-starting your business’ webinar
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UK car manufacturing down -99.7% in April

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SMMT

April car production was basically non-existant in the UK. The country’s output for the month was the lowest since the Second World War, down -99.7 per cent, according to Society of Motor Manufacturers and Traders (SMMT) figures. The coronavirus lockdown forced plants to close, meaning just 197 premium, luxury and sports cars left factory gates in the month. These were models that had been assembled prior to shutdowns with only finishing touches needed.

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  1. UK car production down -42.8%, 11,000 jobs lost in coronavirus crisis
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  3. Van market shrinks -24.8 per cent in June – SMMT
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Tyre distributors come together for ‘Kick-starting your business’ webinar

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Tyre distributors from across the country have come together to support the restarting of the tyre trade. Large and small retailers from St Helens to the South East worked together to produce the inaugural Tyrepress webinar entitled “Kick-starting your tyre business’.

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  1. Mobile tyre fitting: the new normal for tyre retailers?
  2. Micheldever focused on supporting tyre dealers’ survival during lockdown
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  4. An unprecedented year for the tyre business
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Goodyear management convicted of unfair dismissal over Amiens closure

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PneusNews

Goodyear management has been convicted by the Amiens court for the unfair dismissal of 832 of its former employees. The manufacturer’s factory in Amiens Nord, France, which specialised in the production of agricultural tyres, closed in January 2014. The closure brought to an end a six-year stalemate between staff and management, with the loss of 1,143 jobs. The Thursday May 28 judgement saw the court ask for the provisional execution of the sentence, as requested by the employee’s lawyer, Fiodor Rilov. The amount of damages to be paid is not yet available. Goodyear management has indicated that it has taken note of the ruling, adding that it reserves “the right to appeal.”

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  1. End of the road for Goodyear’s Amiens-Nord plant?
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GRI makes Sri Lanka plants Covid secure, factory back at full capacity

GRI has established Covid-secure working environsGRI

Specialist tyre manufacture GRI says it is poised to meet the challenges of its new Covid-secure working environs by “continuing to make safety its utmost priority”.

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  1. GRI celebrates factory anniversary by launching 100 new sizes
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Goodyear Luxembourg power stations to supply energy for 1200 homes

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The Goodyear Tyre & Rubber Company is partnering with Enovos to build two photovoltaic power stations at Goodyear’s testing facilities in Colmar-Berg, LuxembourgGoodyear; Getty Images

The Goodyear Tyre & Rubber Company is partnering with Enovos to build two photovoltaic power stations at Goodyear’s testing facilities in Colmar-Berg, Luxembourg.

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Kerr’s Tyres secures £500k funding from Ulster Bank

Norman Kerr portraitKerr’s Tyres

Kerr’s Tyres & Auto, one of Northern Ireland’s leading suppliers of tyres and automotive services, has secured a half-million pound loan from Ulster Bank to support it through the coronavirus crisis. It has been delivered through the Coronavirus Business Interruption Loan Scheme (CBILS).

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  1. Kerr’s Tyres & Auto creates 20 new jobs in £2.5 million investment
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FreshLinc Group fits 100% Michelin tyres on bulk transport fleet

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Michelin

FreshLinc Group has moved its entire bulk transport fleet onto its existing Effitires tyre management contract. The company’s fleet now runs exclusively on Michelin tyres as a result. FreshLinc has grown into one of the UK’s biggest logistics firms, having been established in 2996. It operates four separate divisions – FreshLinc Chilled, FLX Logistics, DirectLinc and FLB – with a combined fleet of approximately 400 commercial vehicles. The company has fitted Michelin tyre for more than a decade.

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Top Treads looks forward to sustainable retreading future

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Inside the Top Treads factoryBridgestone; Bandag; Top Treads

One of Bridgestone’s largest European Bandag franchisees, Top Treads, stayed open during the current pandemic in order “to support our customers, changing working practices” while also “implementing social distancing”, according to Top Treads’ owner and managing director Steve Evans. Moving forward, the firm’s faith in its sustainable retread products is beginning to reap dividends in the demanding commercial tyre market.

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  1. Top Treads resilient and adaptable despite challenging lockdown environment
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IGA launching Covid-19 Compliance scheme for independent garages

IGA

The Independent Garage Association (IGA) is launching a Covid-19 compliance certification scheme for garages wishing to demonstrate to their customers that the environment is safe. The scheme is based on the Government’s safe working guidelines to prevent coronavirus transmission and will underpin the IGA’s case to overturn the six-month MOT extension by providing evidence that garages are safe places for consumers to visit.

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GS Yuasa launch new company to service Nordic and Baltic markets

Yuasa

GS Yuasa Battery Sales UK Ltd are pleased to announce the establishment of a new sales company to serve their Nordic and Baltic export regions. GS Yuasa Battery Nordic began trading from a new distribution centre in Jönköping, Sweden in December 2019. The creation of a new sales company and distribution centre in Sweden represents a significant investment from the battery manufacturer, as it aims to increase market share in the Nordic and Baltic regions.

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Camso’s Solideal offers contactless on-site mobile tyre service worldwide

Camso has adjusted its Solideal On-Site (SOS) processes to offer contactless on-site procedures for forklift tyre replacementCamso; Solideal

Since the beginning of the current global crisis, Camso has adjusted its Solideal On-Site (SOS) processes to offer contactless on-site procedures for forklift tyre replacement.

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  1. Camso buys Stanley Industrial Tires
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