October New Car Registration up 32%
October new car registration shot up 32 per cent in October to 168,942. According to figures released today the increase is the best gain so far in 2009. Private purchase shot up between September and October, prompting the SMMT to report that the latest numbers are the result of the fourth month of sustained growth coming from the Scrappage Incentive Scheme (SIS). Looking at the figures broken down by brand, it is clear that Vauxhall and Ford remain outright market leaders. However, there is continued progress amongst the once smaller Korean brands. To put this into perspective, in October Hyundai (7179 registrations) out-sold Fiat (6570) and Kia (5633) sold more cars than Honda (4490).
Continue ReadingGet Going With Falken Tire
Falken Tire has launched a new slogan it says ‘personifies’ its mission – We get you going. This phrase, explains Falken in a press release, holds multiple meanings and purposes for the tyre maker: “Over the years, the company has made every effort to capture the essence of a valued product in a highly competitive market. Falken has consistently taken a leaps-forward approach in how it designs, produces, markets and sells its tyres. From the sophisticated tread and carcass designs, engineered in Japan, to the most important facet of sales: Customer Service.
Continue ReadingYokohama Sales & Earnings Decline in H1
Yokohama Rubber has reported a year-on-year 21.3 per cent drop in sales during the first half of the financial year. Upon announcing sales in the six months to September 30, 2009 amounting to 202.1 billion yen (£1.4 billion), the company noted that demand in its principal markets – Japan, North America and Europe – had weakened. Slackening demand also undermined sales volume in Yokohama’s Multiple Business (diversified products) Group, which posted sales declines in high-pressure hoses, in conveyor belts, in sealants, and in aircraft products.
Continue ReadingCooper Posts Positive Q3 Results
Citing lower raw material costs, continued manufacturing improvements and a better utilisation of capacity as the key driving factors, Cooper Tire & Rubber has reported a US$41 million net income for the quarter ended September 30, 2009, a $102 million improvement over the same period last year. The company’s net sales for the period were $803 million, a year-on-year increase of $9 million, while operating profit was $71 million for the quarter, a $118 million improvement from the corresponding months in 2008.
Continue ReadingCTNA, Hoosier to Pool Performance Tyre Know-How
A partnership initiated between Continental Tire North America and Hoosier Racing Tire carries the hope of taking the convergence of the high performance street tyre and racing tyre industries a “significant step forward.” On October 30 the two companies announced their intention to invest “substantially” into a strategic alliance involving marketing, business and research and development. Specifically, the two companies have assembled a “team of industry veterans” who now become the driving force behind the collaborative marketing, product development and implementation process.
Continue ReadingRevised Toyo Figures Show Improved Profitability
Toyo Tire & Rubber has made a number of revisions to the consolidated performance forecasts for the first half of the fiscal year ending March 31, 2010 (April 1, 2009 to September 30, 2009) that it released on May 11, 2009. Predicted net sales have been bumped down 7.4 per cent, or 10.4 billion yen (£69.7 million) to 129.6 billion yen (£868.3 million). Despite this reduction in sales, however, operating loss is expected to decrease from 2.8 billion yen to 1.3 billion yen (£8.7 million). Ordinary loss will also diminish, from 4.1 billion yen to 1.3 billion yen. Net loss also decreases from 4.2 billion yen to 2.0 billion yen (£13.4 million).
Continue ReadingAlliance Tire Buys GPX Assets
Just a day after GPX International Tire Corporation (GPX) filed Chapter 11 bankruptcy protection, Israel-based Alliance Tire Group announced it has signed an agreement to purchase certain assets for a reported $38.3 million. According to Alliance, the deal includes: “GPX’s US operations, customer relationships, warehouse footprint, worldwide rights to the Galaxy and Primex brands, the company’s medium radial truck tyre distribution business and the Company’s South African entity, GPX Tyre South Africa (Pty.).” According to GPX the purpose of entering chapter 11 was “to separate the company’s operations into three distinct businesses in order to facilitate the sales of those businesses in transactions, which will allow 95 per cent of the company’s current North American workforce to remain employed.” Crucially, the statement points out that “the company will wind down its European operations.” GPX also explained that it has buyers lined to purchase various parts of the business.
Continue ReadingMichelin Q3 Figures Show Improvement
Michelin reports its decline in unit sales during the third quarter of 2009 and over the first nine months of the year is “in line with the decline in global tyre markets.” During the most recent quarter the manufacturer recorded a 14.0 per cent drop in unit sales, a figure that shows a lift in sales compared to the preceding months: in the first nine months of the year unit sales were 20.1 per cent down. The French tyre major generated net sales of 3.754 billion euros in the July to September quarter, a 10.9 per cent decrease on the corresponding three months in 2008. During the nine months to September 30, 2009 net sales amounted to 10.888 billion euros, a year-on-year decline of 12.5 per cent. Deutsche Bank analysts comment that third quarter sales were “slightly better than expected”; sales also beat the expected average of 3.727 billion euros gleaned from and a Reuters survey of six analysts. While volumes were as bad as Deutsche Bank’s analysts anticipated, Michelin’s four per cent price-mix for the quarter was a pleasant surprise. Price mix during the nine months was 7.6 per cent.
Continue ReadingMeyle to intensify UK sales activities
German vehicle spare parts manufacturer Wulf Gaertner Autoparts AG has reorganised its Meyle brand sales activities in the British aftermarket. In September the company launched its new UK subsidiary, Meyle UK Ltd. The local operation, headed by managing director David Ward, is responsible for the marketing of Meyle brand suspension and steering components, rubber-to-metal parts and brake system components. Meyle UK will, says the parent company, be able to “significantly improve supply capability of its complete range of 12,500 items to customers across UK,” including the 500 or so heavy duty parts that have been reengineered beyond their OE counterparts.
Continue ReadingWincanton Establishing Direct Imports Capability for Micheldever
Micheldever Tyres has appointed logistics services provider Wincanton Plc to set up a direct import and trunking solution for the business. This arrangement will see a portion of an existing Wincanton site in Kettering, Northamptonshire set aside as a ‘direct import centre’ for Micheldever. From here more than 50,000 tyres will be shipped to wholesale distribution centres throughout the UK, which in turn will supply 22 per cent of the national tyre market. According to Wincanton, the new solution will reduce lead-times onto site following arrival at the port plus reduce product movement and handling across the network.
Continue ReadingUS Tariffs “Groundless”, says China
China’s Commerce Ministry has labelled US measures against Chinese imports, such as the tariffs on consumer tyres, as “groundless”. On October 15 ministry spokesman Yao Jian told journalists "the US launched a large number of trade remedy measures this year. Quite a few such measures were groundless and wrong."
Continue ReadingPirelli Working With Developer on Burton Retail Site Development
Pirelli is cooperating with a property developer on plans to build a housing estate on the site of its Burton factory’s former retail division. Developer St. Modwen Properties, who purchased a 21-acre plot from Pirelli in 2005 and a further nine acres in 2007, intends to construct around 200 houses on a 20-acre site.
Continue ReadingDestination Europe: More Chinese Products En Route to Europe?
Now President Barack Obama has stuck 35 per cent import duty on all passenger car and light truck tyres from China for the next three years what happens next? Chinese tyre manufacturers won’t want to sell fewer tyres each year. But US importers, consumers and manufacturers are equally unlikely to want to pay or absorb the additional costs. Tyres & Accessories spoke to a range of US, Far Eastern and Chinese companies and found that manufacturers are having to rely heavily on production flexibility, while traders are now setting their sights on one market in particular - Europe. Stephen Wu, managing director of Chinese tyre trading operation, Best Choice International, reports that orders from the US stopped came to a virtual standstill in July. Their strategy is now openly towards producing more European market orientated products: “We stopped an SUV/LT project and waited for the decision. And we produced more European UHP tyre sizes, not US sizes.” Companies like Best Choice are now prioritising orders in other markets – especially Europe – where they aim to sell the most popular sizes, UHP and winter tyres. Best Choice is apparently interested in other markets as well, but Wu refused to give further details at this time. As far as Best Choice is concerned there is now zero chance of getting orders in the first year of the tariff, except in the 19-inch and over category. As a result competition is likely to be based on just two factors: price and delivery time.
Continue ReadingNTDA – Over 80 Years and Still Going Strong
Beginning by quipping that he didn’t mean to lie at last year’s event when he said the 2008 dinner was to be his last, NTDA chairman Peter Gaster opened this year’s chairman’s speech by explaining that the his chairmanship has been extended while he completes a review of NTDA’s future. Kwik-Fit’s David White, who will succeed Gaster as chairman, is set to take over when the select group of NTDA members has been consulting with have completed their recommendations. The current chairman was keen to point out the association’s history and strengths: “Our association has been in existence for over 80 years and, in tyre industry terms, is the oldest surviving association and is still going strong! The main themes of any proposed changes are based upon the strength and weakness or pros and cons of our association.” This was a reference to the association’s recent moves to resist “integration with other organisations.” However, “we would view any trade association that wanted to affiliate or even join the NTDA with an open mind and on its merit,” he added. This means that NTDA will maintain its office in Aylesbury with the ongoing support of its director and staff for the “foreseeable future.”
Continue ReadingExcellent Turnout for 80th NTDA Annual Dinner and 2009 TAFF Awards
Around 400 guests filled the Deansgate Suite at the landmark Manchester Hilton Hotel to celebrate the 80th NTDA annual dinner and the 2009 Tyre and Fast Fit (TAFF) awards ceremony. The event, held on the evening of 23 September, saw the industry’s brightest and best gather to celebrate the successes of an industry that is determined to tough out the recession. The turnout alone spoke volumes about the attitude of the business’ leaders, with NTDA chairman Peter Gaster’s speech highlighting the challenges and successes of the industry; and the TAFF awards themselves recognising the achievements of companies within the business. This year’s event was sponsored by ECI International (the organisers of Brityrex, Tyrexpo Asia, Tyrexpo Africa and now Tyrexpo India); well known logistics firm DHL and Tyres & Accessories (and website tyrepress.com), the industry’s leading tyre trade publications. The TAFF awards themselves were compered by Mark Harrison on behalf of ECI International and after dinner entertainment was provided by Ian Irving. Following the publication of 20,000 voting slips by Tyres & Accessories and the NTDA, and after hours of dedicated vote-counting, the 2009 awards were presented to successful candidates with tyre industry equivalent of “the red carpet treatment.” The fifth NTDA TAFF Awards also differed from previous competitions as it was the first time online voting had been included. In addition to the awards decided by the normal one industry member one vote system, and the NTDA nominated chairman’s award, 2009 saw the introduction of an expert judging panel to decide this year’s innovation award. The panel was made up of the representatives from associations and trade publications including NTDA, TIF, GEA and Tyres & Accessories. And now the results…
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