Collaboration is the future…or is it?
This month I went back to school. Tyre 2015 – the fourth International Tyre Colloquium, hosted by University of Surrey to be precise. While much of the science was beyond those of us that don’t work in R&D, the concepts behind the really technical stuff are fascinating. And what’s more, they offer a unique insight into what is on the horizon in terms of tyre development, vehicle dynamics and indeed original equipment (OE) trends.
Continue ReadingNow Pirelli’s been sold, who’s next?
In case you haven’t heard, as much as 65 per cent of Pirelli is in the process of being sold to ChemChina. It’s a complex plan and there’s a long road ahead, but the deal has been done and so takeover wheels are in motion (see page 28 for complete coverage of this part of the story). So what’s next? The deal can’t fail to have an impact at Pirelli, but what about the other top five tyre manufacturers and beyond? We hinted at market consolidation in this column last month, with reference to restructuring proceedings at Shandong Deruibao Tire Co., Ltd and possible contagion in China; and Pirelli CEO Marco Tronchetti Provera made the market aware of that he was planning to sell his stake within two years in January 2014. But few would have named this particular bidder and this particular timing. Now we are faced with the possibility, even the likelihood that the Pirelli/ChemChina deal is going to precipitate further micro and macro consolidation within the tyre market - even a re-shuffle of the tyre industrys top 10.
Continue ReadingFirst blood to import tariffs?
No sooner had Shandong Deruibao Tire Co., Ltd. entered into apparent “restructuring” proceedings on 7 February then we at Tyres & Accessories started hearing about it on the grapevine (see page 40 for full coverage of this story). Of course, companies face difficulties in any business from time to time, but this case has particular resonance with many because it is emblematic of what is going in China. There are two things the market is interested in - what’s behind the pressures Deruibao are facing and what the knock-on effects will be.
Continue ReadingA tale of two markets…
Global markets and tyre markets interact with each other. With economics and indeed the tyre market being more “global” than ever, events in one market are bound to have a greater impact on other markets than ever. And with Europe having experienced its share of political and especially economic instability in the last decade, while […]
Continue ReadingComment: Roll on 2015
As the evenings draw in and the temperatures drop, people not only make preparations for Christmas, but also consider the pros and cons of the last 12 months as well as look forward to next year. When it comes to the tyre business it is no different, I am sure we are all looking forward to our Christmas break – but this is also the season for stock-taking, both metaphorical and literal.
Continue ReadingTransport is changing, which means the tyre business will too
Towards the start of October I had a chance encounter with a University of Oxford academic, researching the economics of Transport. Generally people understand that there is a certain cache associated with such a role. And people may have an idea of what life is like for academics that are part of elite institutions. But at the same time those in industry often question how close to the market and how practical the suggestions made by such academics really are. Talking to Dr David Bonilla (Senior Research Fellow in Transport, Energy Economics at St. Anne’s College, Oxford) between speeches at Goodyear’s recent fleet symposium really brought this home (See our complete Fleet Business feature in November’s Tyres & Accessories for more on the subject).
Continue ReadingFaster than ever – online business is an increasing feature of the tyre sector
Super-fast broadband is now commonplace across the UK. According to the telecoms regulator Ofcom, the average speed in the UK is now 18.7mbps. Even in rural areas they are generally getting speeds of 13.6mbps. To put this in perspective, the UK average five years ago was 4.1mbps and at that time many places were not getting speeds as high. But what’s all this got to do with tyres? The specific answer is that this month we are covering the “Online Tyre Business” in some detail. But the more general answer is because it is increasingly prominent part of our culture and therefore tyre-buying consumer behaviour. But first another statistic.
Continue ReadingIs Hankook the current UK truck tyre market leader?
It seems we have a new UK commercial vehicle tyre market leader - Hankook. As well as featuring “Industrial and Speciality tyres” from pages 58 to 69 of this September’s edition, this month we have also taken a detailed look at the development of UK truck tyre market. This meant speaking to high level contacts at various manufacturers, wholesalers and third-party analysts in order to produce an original analysis of the status quo. Our analysis was compared to a similar exercise Tyres & Accessories undertook in 2009 in order to give the overview some longer-term perspective. The results are published on pages 24 to 43 for your reading pleasure and engagement.
Continue ReadingWill Europe impose tyre import tariffs?
In this month’s magazine (July 2014), as well as our the conclusion of our comprehensive review of the Essen Show (see page 40 onwards) plus features on manufacturing (from page 24) and batteries (page 8+), we report on the potential “Return of US tyre import tariffs” (on page 30). Reading this article, you could be forgiven for thinking you had stepped into a time warp to 2009 where proceedings followed a very similar course. This time round, the potential implementation of a second round of import US import tariffs aimed squarely at China have fermented rumours about whether anything similar is likely to happen in Europe. So will it?
Continue ReadingE-commerce comes of age
It seems 2014 could be the year that tyre e-commerce hits maturity. It doesn’t seem that long ago that the NTDA published research showing that the number one method of ordering was phone and – wait for it – fax. Internet was a minority method, but e-mail (a medium of communication that is buckling under the pressure of increased demand for more and faster contacts) was showing some signs of growth. In fact it was November 2005, and therefore will soon be a decade ago. In 2014, virtually every significant wholesale and direct distribution operation is supported by a sophisticated online ordering system that is simply backed by other methods of communication.
Continue ReadingPumping up
The state of various European economies varies significantly, there are signs that the tyre markets are picking up and – if some of the large tyre makers’ recent financial reports are anything to go by – premium tyre sales are what are needed to turn green shoots into green backs.
Continue ReadingTyre manufacturers prepare for long-term trend of increased coach and bus transport in Europe
In terms of the sheer number of vehicles on UK roads, the coach and bus segment accounts for just 0.3 per cent (90,355) of the total number of vehicles on UK roads. But there are good reasons to be interested in the coach and bus tyre market, especially as premium brand players like Continental, Goodyear and Bridgestone launch ever more specialised products, moving away from fitting the same 22.5” or 17.5” products as those found on trucks.
Continue ReadingClever tyres – how tyres, TPMS and RFID are combining
After a century of development, tyres are getting cleverer than ever. Now they are beginning to think for themselves – or at least feed back information automatically. For much of the history of tyres, research and development focused on materials, compounds, construction and processes – all things that have brought tyre technology to where it is today and will take it through tomorrow and beyond. What’s different now is that in the last couple of years we have seen the rise of “clever” tyres, intelligent tyres, even cyber-tyres – call them what you will. The point is that these products are seeking to transform the tyre from being a passive component that runs fine as long it has tread remaining, is cared for correctly and avoids sharp objects. Now it is becoming an active part of modern connected vehicles, providing feedback as to the tyre’s type, state and even environmental conditions. All this is exchanged with the vehicle’s on-board computers in order to optimise performance. In the case of passenger cars this means sharing such data with ABS and ESP, helping the car “feel” the road and conditions.
Continue ReadingWhat the rise of BRIC and MINT economies means for the tyre market
OK so the fact that China is the world’s largest tyre producer, the largest car maker, has the largest population and is likely to be the largest economy soon means that it is massively premature to write off the People’s Republic. Rapid growth and the huge scale of Brazil, Russia and India means these markets are still should be the focus of much attention. However, many international businesses have already latched onto this. So if everyone is competing for what they perceive as the same low-hanging fruit other opportunities could be going missing…or at least that is the question that is being raised in banking circles.
Continue ReadingTyre [buyer] aging
The question of how long it is before a tyre reaches its sell by date is a familiar subject. A few years ago this column covered the rising age of tyre company directors and raised the question of what this meant for individual succession plans in particular and the market in general. But there is one specific type of “tyre aging” that we (and to the best of my knowledge) no-one has ever touched – how the tyre trade pitches its products and services towards “older” consumers.
Continue Reading