Focus Named ‘Car of the Year 2000’ In USA
Journalists at the Detroit Motor Show have voted the Ford Focus ‘Car of the Year 2000’. The Focus is produced in Germany, Spain and the USA.
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New Power Station To Burn Tyres
Construction work is set to begin this month on a new power station which will burn 65,000 tonnes of scrap tyres annually. It is sited at Four Ashes in Staffordshire and is due to become fully operational in January 2002. The total cost will be around 332.4 million.
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Porsche Award For Bridgestone
Bridgestone has won Porsche’s Supplier award for 1999. The tyre company was also assessed by Porsche as Top Best for product quality and delivery; the only tyre manufacturer to achieve this ranking. The award was presented to Michael Conrad, OE sales manager for Bridgestone/Firestone Deutschland, and Stephen Rambow, engineering account manager in charge of Porsche affairs, at a ceremony attended by senior representatives of Europe’s auto industry.
OE Contracts For Bridgestone
Nissan has chosen Bridgestone Potenza RE040 tyres for the limited edition (200 for sale in the UK only) R34 version of its Skyline GTR. The Skyline was the first production car to lap the 14-mile Nurburgring circuit in under eight minutes. Bridgestone has also been chosen as exclusive OE for the six-litre Aston Martin DB7 Vantage Coupe and Vantage Volante cars. The tyre in question is the Bridgestone S-02.
Reifen Schneider Calls In Receiver
The German tyre dealer Reifen Schneider (Mulheim-Karlich) called in the receiver in late December last year. At its peak the company was selling about half a million retreaded tyres from the Technic Group and it is most likely that the Germans were strongly affected when the British retreader ceased trading at the end of 1999.
US Success For German Cars
US auto sales in 1999 reached 17.4 million; a 9.1% increase over 1998. Audi car sales rose 39% to 65,959, Porsche sold 17,243 cars (+21%) and Mercedes 189,437 (+11.3%). Chrysler “only” achieved an increase of 5.1%.
Renault Sales 2.29 Million In 1999
Renault car sales last year totalled 2.29 million; a 7.4% increase. The company also announced that, in the future, it will use Nissan’s production capacity outside Japan to produce and market Renault cars.
BBS Re-purchase Italian Factory
BBS has bought back the 50 per cent share in a light alloy wheel factory in Ruina (Ferrara), from it former partner in the joint venture, Riva Calzoni.
Nokian To Produce Commercial Tyres In The USA
Finnish tyre manufacturer Nokian has confirmed that the company intends to produce commercial tyres in the USA as soon as possible. The first products will be forest tyres, followed by industrial tyres. A spokesman for Nokian said that it had not yet been decided whether the company would build its own factory in the USA, whether there would be some kind of joint venture co-operation, or whether tyres would be manufactured in an off-take agreement. The Finnish company has been active in the US and Canadian markets for some years.
At Last The Number One Again – “Goodyear, All Systems Go!”
Imagine the scene; Goodyear chairman Sam Gibara addresses an audience of 144 leading managers from around the world, telling them of Goodyear’s ambition to be not only the world’s biggest tyre manufacturer, but also the most profitable. He tells them of the reasons behind the Dunlop joint ventures and spells out the goals for which the Goodyear ‘family’ has to strive to achieve the company’s aims. What lies in store for Goodyear? Does size matter? What changes are needed in management attitudes, distribution policy and brand strategies if Goodyear is to be the best? How important is the adoption of a mullet-brand strategy in the various world-wide markets? These and other thought-provoking questions are discussed at length. As we said earlier, imagine the scene. The truth is there was no meeting in Hawaii and Mr. Gibara did not make the speech – but he certainly could have. The article can be downloaded in full length as PDF file (size: 2.84 Mbyte, Adobe Acrobat Reader required).
The World of Wheels
The large manufacturers of car wheels, especially those cast of aluminium, are growing ever larger. Business is booming worldwide, but the financial results of most manufacturers in this field of activity are well below those achieved in other industries. Wheel manufacturers, on the one hand, suffer from the low ratings stock exchanges accord to car manufacturers and their suppliers, and on the other, because their products are regarded as “low tech”. But all the time big changes are taking place in the world of wheels – in the form of new technologies and an optimisation of existing products. New wheel technologies, however, are not the only decisive factor, another considerable influence is the car manufacturers’ aggressive pricing, well beyond what many a supplier can bear. Some wheel manufacturers focus their activities on the original equipment market in the belief that it will allow them to operate more cost-effectively. Others like to commit themselves to the refit markets because they think they can thus keep their ears closer to the market and be well-placed to offer car manufacturers superior development capability. Which way is the right one, or whether both can succeed – that is something we shall only know in a few years’ time. Of course the starting position is different from wheel manufacturer to wheel manufacturer and from car producer to car producer. In the comprehensive report in this and the following (April) issues we shall outline the trends in detail.
Preserving Precious Resources: Goodyear Presents Eagle NCT 5
The new Eagle NCT 5, introduced to the trade press at Goodyear’s own South of France test track in Mireval in mid-February, is a high-performance tyre in speed categories from H (up to 210 km/h) to Y (up to 300 km/h) with the emphasis on comfort. The manufacturer claims that the new type of tyre, immediately available in more than 20 sizes, is an improvement on its predecessor, the NCT 3 – sometimes to a very considerable extent – in braking on dry and wet roads or aquaplaning both in straight-line driving or cornering. The new product is aimed at an interesting growth market. 52 million tyres of speed index H and faster are currently sold in Europe per year, and this segment already covers 28 p.c. of the market (186 million tyres). The market share of high-performance tyres in Germany is about 35 p.c. at the moment, but still rising strongly. In the new NCT 5 Goodyear’s tyre developers had ecological qualities especially in mind. Compared with its predecessor the newly developed tyre can boast rolling resistance reduced by 20 p.c. and optimised tyre noise. In addition to the reduced rolling resistance which, according to the manufacturer, saves up to 5 p.c. in fuel, the NCT 5’s mileage is said to be improved by up to 25 p.c. In naming this new tyre Goodyear quite deliberately skipped the number 4, since the Far East, one of the target markets for the NCT 5, regards the number 4 as a symbol of impending disaster.
With Reifen Gundlach to the Homeland of GT-Radial
In February Reifen Gundlach GmbH organised the “GT-Radial Tour 2000”, a trip to GT-Radial’s country of origin. The name is a brand of radial tyres (car summer/winter, van, light truck, off-road) produced by the Indonesian tyre manufacturer Gajah Tunggal. Under the brand name “Gajah Tunggal” the company also produces cross-ply tyres for trucks and buses as well as industrial tyres and motorcycle tyres under brand names “Nitto Tyre” and “IRC”. In Germany GT-Radial tyres have been sold exclusively by wholesaler Reifen Gundlach (part of the Japanese Itochu group) for about six years. During the event the tyre manufacturer presented (among others) two new tyres, “Preciro” (available from May, eleven sizes, series 60 and 65) and “Classiro” (QIII/2000, seven sizes, series 70). The current range of products has also been enlarged by new sizes/versions and the Indonesians also become increasingly interested in the small transporter and van segment. When Gajah Tunggal speaks of the intention to enter the radial truck tyre business, the company is probably taking the long view. Further volume growth in the winter car tyre segment is targeted, too. Especially in Germany, one of the most important markets for the company anyway. The export business (80 to 90 p.c.) in GT-Radial tyres is (more than) vital for the manufacturer, since sales figures in the non-radial tyre segment have fallen sharply due to the Asian crisis.
ContiPremiumContact – Developed to Customers’ Specifications
From the spring of 2000 the new ContiPremiumContact will gradually replace the ContiEcoContact CP as the tyre for top-class cars. With this new summer tyre Hanover expects a significant increase in the replacement and the original equipment business in tyres with speed categories of 190 km/h and above during the next few years. The new tyre was presented to the international trade press in mid-February. A study undertaken by the development/consultancy “Institut für Sensorikforschung und Innovationsberatung” has established that the first and foremost user requirement of a tyre is safety. By which he means aquaplaning protection, short brake distances, steering precision, roadholding and tracking stability. With three construction specifications – an innovative bionic contour emulating a cat’s paw that extends in width when the brakes are applied, an asymmetric tread pattern and a third-generation silica compound – the PremiumContact wants to fulfil these requirements. Continental is seeking a total of 37 original equipment approvals from 14 vehicle manufacturers with the PremiumContact – available in eleven different 16 and 17 inch sizes. In the replacement business the ContiPremiumContact will initially be launched in 13 sizes, a 75 p.c. market coverage, according to the manufacturer. The new tyre will be positioned at the same price level as its predecessor.
Stock Exchange Unfriendly Towards Tyre Manufacturers
While Pirelli and Toyo shares – although only from time to time – displayed an upward trend in February, most of the other important tyre manufacturers (for example Bridgestone, Continental, Cooper, Goodyear and Michelin) were among the losers. Their shares have fallen to a new 52-week low, but shares in Yokohama rose 20 per cent at the end of February.
