HSE Warns Tyre Fitters
The Health and Safety Executive (HSE) is urging all employers involved in tyre servicing to assess the risks associated with changing OTR/earthmover tyres. The announcement follows a fatal accident, near Sandwich, Kent, on 27 January, which occurred during the repair of a puncture on a 1.5 metre diameter EM tyre. Kent Police and the HSE are continuing the investigation into the circumstances surrounding the fatal accident. The HSE is encouraging businesses to ensure that employees are “properly trained and competent to undertake such work.” According to the HSE there are two main hazards that can arise during tyre inflation: The violent separation of the component parts of the wheel, or an air blast from a ruptured or burst tyre.
Continue ReadingGoodyear Dunlop Exec Awarded ‘Market Leader’ Opportunity
Goodyear Dunlop Tyres UK Ltd has announced that Geraldine McGovern, E-Business & Digital Manager has been accepted to take part in the prestigious Marketing Leaders Programme run by the Marketing Society. The Marketing Leaders Programme draws on the experience of the society’s senior members and Fellows and also utilises the training skills developed by Brand Learning. The programme was developed following an intensive period of consultation with leading marketing directors.
Continue ReadingContinental AG Sells Stankiewicz GmbH
Continental AG has sold Stankiewicz GmbH to the Dutch investor Gilde Buy-Out Fund, Utrecht, Netherlands. The two parties have agreed not to disclose the purchase price. Stankiewicz belonged to the ContiTech division of Continental AG and was taken over by Continental as a part of Phoenix AG in 2004. “ContiTech is reorienting its core business activities, which is why we decided to sell Stankiewicz GmbH,” says Gerhard Lerch, executive board chairman of ContiTech AG. “This move will have a positive impact for Stankiewicz as well.”
Continue ReadingRené Zingraff to Retire
Michelin has announced that René Zingraff will retire from his position as managing partner after the company’s Annual General Meeting on 12 May 2006. Mr Zingraff’s announcement is subject to shareholder approval. At the last Michelin Annual General meeting in May 2005, Michel Rollier was appointed managing partner of Michelin, alongside Edouard Michelin and René Zingraff. The appointment is seen as advanced preparation for Mr Zingraff’s retirement.
Continue ReadingBlackcircles.com Launches Online Fleet Service
Blackcircles.com has launched a new online fleet service. As manager of Black Circles Fleet, recent appointment, Paul Collins, will be responsible for ensuring “consistent delivery and on-going innovation.” At the same time the company launched an online auction site and continues with a long-term strategy aiming at European expansion. Managing director, Mike Welch, gave Tyres & Accessories details of this growing business’ ambitious but pragmatic plans. According to the company, the new fleet service will be available to vehicle fleets of all sizes. Furthermore, blackcircles.com/fleet is said to significantly simplify the purchase process by providing access through a web-based system. Businesses will have their own private area containing all their vehicle details and will be able to make transactions using a unique PIN number. Blackcircles expects its announcement to be warmly welcomed by fleet managers and boasts that it has “the largest network of fitting stations of any UK tyre retailer.” Mike Welch, managing director said: “We have taken all the knowledge gained from our retail business, including all the feedback we have received from customers, and invested this in our Fleet service. “For too long managers have had to contend with complicated systems and a lack of control. We plan to change this with a system that is far easier to use but a lot more effective. Through our unique tyre procurement process and ground-breaking delivery mechanisms, Black Circles Fleet offers forward looking business flexibility, immediacy and savings to their fleet tyre needs.” Mike added: “Whether it’s five or 5000 vehicles, one preferred supplier or a managed matrix of tyre outlets, Black Circles Fleet can be utilised as the primary resource for tyre supply or simply as a secure back up.” One of the UK’s leading online tyre businesses, Blackcircles says managers and small business owners will now be able to have tyres sent anywhere in the UK in as little as two hours and will be able to access the lowest prices and over 30 tyre brands. According to Mike Welch, Blackcircles already has 8000 fleet customers. That’s all very well, but some observers would argue that there is not much room for expansion in the fleet market. Welch’s response is that, in a similar way to how the company’s consumer business is run, Black Circles Fleet will focus on the needs of the niche it currently serves with a view to expanding from this point. “We’re not eating anyone’s dinner and we are not looking to make no profit. The Kwik-Fits and the ATSs can keep their large fleets because they don’t make any money on them,” Welch explained. ‘We just want to sell more tyres’ In spite of his confident outlook, Mike Welch is pragmatic about Blackcircles’ progress so far and its plans for the future. In his words, the company got where it is today (a 5-year-old business that became profitable in 2005 and predicts sales of £15 million in 2006) by focusing on its core customers and not overestimating what can be done with the Internet. “People always think I am trying to put them off when I say that, but I’m not,” said Welch, adding: “The Internet is another shop front for your retail business, not the answers to all you sales problems. Selling tyres is not a traditional online business and we are not a traditional dotcom company, we are more than that.” “Trying to win and retain customers is our priority and price alone is simply not enough to do that. It’s about service, price and satisfaction. We all say that, but do we all deliver that ‘hand-on-heart?” he continued. Instead Blackcircles aims to add value to “the whole Blackcircles.com experience” with the announcement that it has launched a number of additional services - the company’s online fleet service and auction site (see box) being examples. Pricing is another critical part of the business. While the company’s structure and volume purchasing power help it to keep prices down, it is about more than the lowest possible price tag. “Being able to get a handle on retail prices is a whole lot more important – the tyre industry is a funny industry, being one of the few that is happy to sell a product and not get anything for it. This confuses customers and trains them to expect the same or less next time,” Welch comments, suggesting that appreciating the importance of profitability is central. But no matter how it is presented as a UK retail chain with international business, Blackcircles is growing from an online foundation and not the other way around. And in order to succeed in this respect there are a number of non-traditional advertising and marketing mediums that have to be mastered. So how many visitors does the Blackcircles website attract? Welch didn’t want to see the figure published, but he did say that visitor numbers have grown exponentially – growing by 50 per cent per quarter since the beginning. Conversions, the rate at which visitors become customers is also on the up. Online marketing is an area that Welch, by his own admission, really ought to know a bit about. “Its all about gaining the right balance between traditional and other mediums. PR is good but it doesn’t live forever.” Then there are the non standard mediums like search engine Google’s Adwords system. For Blackcircles.com “Adwords is just an expensive branding exercise.” Instead Welch says that it is all about understanding our current and future customers adding: “We are very good at that.”
Continue ReadingGoodyear Provides Aerial Olympic Coverage
With a record total of 418 hours of Olympic television coverage, NBC will use The Goodyear Tire & Rubber Company to provide aerial coverage for US television of the Winter Olympics from Torino, Italy. Goodyear, which provided the first aerial coverage of a televised sporting event at the 1960 Orange Bowl, has contributed spectacular images from above thousands of major sporting events for almost 50 years. “NBC is putting particular emphasis on its high-tech coverage,” said NBC Sports executive producer David Neal. “Only Goodyear has the means and the skill to be able to provide the type of first-class aerial footage we needed to enhance our more than 24 hours of combined coverage everyday and bring our viewers an amazing overhead perspective.”
Continue ReadingNew Tyres Unveiled at Chicago Auto Show
(Akron/Tire Review) As it has in recent years, Bridgestone Americas Holding (BAH) is sponsoring the media center at the upcoming Chicago Auto Show, 10 – 19 February, and is using the event to showcase new technology and products. BAH plans appearances by Mario Andretti and 2005 Indy 500 champion Dan Wheldon, and will display the 1911 Marmom Wasp that Ray Harroun drove to victory in the very first Indy 500.
Continue ReadingJK Industries to Separate Tyre Business
JK Industries is planning to de-merge its assets in order to better focus its tyre business. The company’s board has today approved the proposal of de-merger. According to the India’s Business Standard newspaper, the investments will be transferred to a new company at their respective book values. Ernst & Young and Amarchand Mangaldas and Suresh A Shroff & Co (AMSS) have been appointed as advisors and legal advisors, respectively, the company told the Bombay stock exchange. JK Tyres manufactures the JK and Vikran tyre and produces 7.2 million units each year.
Continue ReadingCostco Buys Additional Branick N2 Systems
(Akron/Tire Review) Costco Wholesale purchased an additional 26 Branick Nitrogen Tire Inflation Systems for its Costco de Mexico Wholesale locations, completing the installations in late 2005. In addition, Costco purchased an undisclosed number of Branick units for its 16 UK stores. The addition of nitrogen tyre inflation systems in Mexico comes one year after Costco installed over 400 Branick nitrogen units in its US and Canada tyre centres.
Continue ReadingNew Tomahawk T3 Tyre
Tomahawk, the UK manufacturer of retread radial motorcycle tyres, has launched a new pattern tyre for the 2006 season. The company’s new T3 tyre is said to be sport biased “with a large contact patch that puts more rubber on the road.” The tyre offers Z-rated performance in a choice of three compounds; Road, for every day use and good rates of wear; Sport, for spirited riding on road or track; and Sprint, for track day use.
Continue ReadingVarta Warns of Further Battery Price Increases
Varta has warned the UK aftermarket to expect further steep rises in automotive battery prices later this year. This is the result of the high price of lead on global markets, which has been steadily rising since mid-2003, driven by demand for base metals from China and other emerging markets. The price of lead is the major factor governing the cost of a car battery and, while increased material costs were initially absorbed by the manufacturers, this is no longer tenable, with lead costing 80 per cent more than it did two years ago.
Continue ReadingGoodyear Promotes Two in Technical Group
(Akron/Tire Review) Goodyear Tire & Rubber Co. has promoted William Hopkins and Joseph Zekoski to new positions in its technical group. Hopkins, formerly vice president global product marketing and technology planning, was named to the newly created position of vice president of technology and strategic initiatives. He will be responsible for global strategic initiatives, tyre engineering, materials, performance prediction and global vehicle systems.
Continue ReadingPlantation Workers Go on Strike – Reports
(Akron/Tire Review) News reports out of Monrovia, Liberia, say that some 3,000 workers at Bridgestone Corp’s natural rubber plantation there have gone on strike. “The strike is very serious. Production has come to a complete halt,” a public relations spokesman with Firestone Plantation Co. told Reuters. “We have asked the government to intervene. We do not know why this is going on.”
Continue ReadingGoodyear Appoints Farm and Earthmover Specialist
Goodyear Dunlop Tyres UK Ltd has announced the appointment of Stuart Starrs as Farm and Earthmover Tyre Specialist for Scotland. Stuart brings 20 years farm experience to the team reporting directly to Andy Morris, director of Off-The-Road tyres and will focus on developing contacts throughout Scotland co-ordinating promotions and sales as well as resolving any technical queries that may arise. He joins the company from Coventry-based tractor manufacturer AGCO, manufacturers of Massey Ferguson, Fendt and Challenger tractors for the European market. Here Stuart was area sales manager for England selling tractors to dealers throughout the territory as well as conducting field demonstrations and providing technical support.
Continue ReadingMicheldever Tyre Services Sold in Management Buyout
Tony Todd, the architect of 34 years of growth at Micheldever Tyre Services’, has sold the company to its management team. On 6 February Alan Baldwin, Phil Brookes, Ashley Croft, Mike Flood, Brian Kerswell, and Eric Noble became the new owners. A number of other companies, including Kwik-Fit, are said to have unsuccessfully approached the company. The deal was backed by private equity company Graphite Capital and the Royal Bank of Scotland. Financial sources report that Graphite is taking a 72 per cent stake while the management will own the remaining shares. While details of the price-tag have not been released, estimates would have to be based on the £150 – £160 million of sales the company achieved in 2005.
Continue Reading