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Reiff Reifen & Autotechnik (Germany) gave up the production of retreaded passenger car tyres at the end of December 2004, because it was not making a good enough return on its investment. The Condor tyres it produced were a well-known brand and the Reiff manufacturing plant, built only five years ago, was considered the “most modern in the world.” What caused the degeneration of such a promising business model?
As the UK tyre business was observing events at the Autosport/Aftermarket show, on the other side of the globe, the Tokyo Auto Salon was attracting some 300,000 spectators. Approximately 30,000 of these passed by the Hankook stand each day. According to Hankook, every Japanese car, wheel and tyre manufacturer was present.
Demonstrating its new corporate identity, the Korean company adopted the Hankook Emotion theme for its stand. The exhibition displayed 20 items including its range of Formula 3 racing tyres, Ventus UHP tyres, the low-noise XQ-Optimo and a number of concept products. The company also tried to charm its visitors with a racing Porsche on the company stand, with a magician providing further entertainment.
“The Hankook Tire booth was a fine chance to promote our new corporate identity program in Japan, one of the world’s most important markets for modified automobiles. We worked hard to make a venue that would give auto buffs from around the world a look at our world-class technology and tyres of the future,” commented a Hankook representative.
Continental AG is expanding its automobile manufacturer and supplier engineering services. “For 2005 we are aiming to achieve corporate sales volumes in the double-digit million range,” said Continental executive board member, Dr Karl-Thomas Neumann. “In the area of vehicle dynamics and suspension control in particular we are filling a niche that to date has hardly been tackled by engineering service providers, as only very few companies have the required broad technical knowledge of automotive brakes, chassis, electronics and tyres,” explained Dr Neumann.
Truck tyre retreader, Bandvulc Tyres, has appointed Richard Quadling as its new software developer. Through its new recruit the company is aiming to improve its existing systems, and provide enhanced reporting facilities and systems integration.
Mr Quadling joins Bandvulc after 15 years at Carval Computing where he specialised in programming bespoke applications, point of sale and accounts development.
“I love programming and the degree of problem solving the discipline requires,” says Richard Quadling, software developer, Bandvulc Tyres. “Having previously designed software for Bandvulc as a contractor, I know that the work here will be extremely interesting. It also means that I can combine the high quality of life that staying in the region brings, with a challenging and rewarding career,” he adds.
Through its participation in the 2006 World Cup, Continental AG is aiming to further enhance its reputation and awareness of the Continental brand. This huge sporting event is said to be the ideal scenario in which to ‘emotionalise’ spectators. The World Cup offers another advantage, according to Lars Fahrenbach, marketing director at Continental’s passenger car division and responsible for the European replacement market: “Everybody else is in motorsports.”
Continental was able to improve sales by nearly €1 billion (approximately £700 million) to around €12.5 billion last year thanks to the acquisition Phoenix, according to Manfred Wennemer. The AFP new agency has reported that a company spokeswomen has confirmed Mr Wennemer’s earlier comments. The Continental chairman also reported that the company’s overall net debt fell below one billion euros last year.
Michelin has launched the first road legal multi-compound racing tyre, the Power Race. The hypersport bike tyre utilises Two-Compound Technology (2CT), which the manufacturer says represents a “leap forward in the development of commercial motorcycle tyres.”
The future of western European car manufacturing is at risk unless the industry takes steps to improve its international competitiveness, a senior Ford executive has warned.
“The fact of the matter is, these days it is not a very competitive place to do business,” said Mark Fields, executive vice president of Ford’s Premier Automotive Group.
Tokai Carbon and Mitsubishi Chemical Corp have agreed to revoke their agreement to form an Alliance of carbon black businesses. The companies will also withdraw their application for examination by the Fair Trade Commission. The commission had suggested that “the alliance might substantially restrict competition in the Japanese domestic market that is presently short-supplied.”
“We anticipate harsher competition in the carbon black industry in Asia including Japan where aggressive capacity expansions are being made in expectation of rapid growth in the automobile industry, the main consumer of carbon black … We will expand and reinforce our business bases mainly in rapidly growing Thailand and China, as well as accelerate development into high added-value products and new market areas under the basic policy of ‘Powerful R&D,’” the company said in a statement. The stated that it would remain open to the possibility of future alliances.
According to media reports, Continental will probably increase its shareholders’ dividend payments. The German daily Die Welt has reported that company chairman, Manfred Wennemer, is currently considering such a step, referring to the excellent business figures in 2004. Continental AG paid 52 cents per share in 2003 financial year. According to the newspaper, the tyre manufacturer is said to have achieved its internal financial goals again in 2004.
Tyres played a significant part at this year’s Autosport Interntional/Aftermarket Show. Yes some of the biggest players (Michelin, Bridgestone and Continental) were noticeable by their absence, but the shows still managed to attract some 92,000 people of whom 25,000 were registered trade and international visitors. Importantly, a number of these visitors will have found themselves ‘crossing over’ to the other side, from consumer to trade or vice versa.
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One of the highlights of the Aftermarket show, from a tyre point of view, was the Model Tyre Retailer display. Set up in the form of a Yokohama Advan Dealership, the exhibit was designed to be a demonstration of best practice. Each hour, on the hour, tyre technicians gave 30 minute presentations showcasing market leading products and services.
Speaking at the opening of the Model Tyre Dealer display, NTDA national chairman, Martin Rowlands commented: “The exhibit offers an insight into the type of equipment and services that modern, forward looking tyre shops are beginning to use. The pace of development for both tyres and vehicles has accelerated at a frightening speed over the last decade and there is now a need for better diagnostic equipment, better technical knowledge and above all premises that are clean, efficient and inviting! Customers have become better informed and more demanding, but also more receptive to service quality,”
The exhibit featured tyres produced by Yokohama, Pro-Align wheel alignment systems, REMA Tip Top Machinery and CP Designs tools. The organisational forces behind the stand were show organisers Haymarket Exhibitions and alignment specialist Pro-Align.
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Although US produced Pro Comp tyres have a good reputation in the states, they are not so well known in the UK. That’s why Midlands based 4×4 distributor, John Craddock Ltd, jumped at the chance to become the brand’s sole importer for the UK & Ireland. Tyres & Accessories spoke to marketing manager, Jamie Stevens.
Workers at Michelin’s Ballymena plant are to vote over possible strike action. The outcome of an indicative vote on industrial action at the Michelin tyre factory should be known early next week. The vote follows the news that workers at Michelin’s Dundee operation have accepted the terms, while workers at the company’s Stoke-on-Trent site are in the process of postal ballot about the strike action.
Tomahawk has been through some major changes since its inception eight years ago. Set up in Wolverhampton, following two and a half years of research and testing it was the first business of its kind to retread motorcycle tyres in the UK. It was business as usual for the company until an American firm approached it two years ago, wanting to join forces to develop the retreaded motorcycle tyres for the US. Tomahawk entered into a commercial agreement with Cycle Tires, a subsidiary of aircraft tyre technologist, Desser Tire & Rubber and hasn’t looked back.
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