Capitalising on e-Commerce
Whether you like it or not, the world is turning more and more into a technological marketplace. And all aspects of business are being affected, including the tyre trade. Here Tyres & Accessories looks at two of the Internet’s best-known names, and asks how their businesses might affect yours. According to the Office of National Statistics, by the end of 2004, 52 per cent of households in the UK had access to the Internet at home. And by the end of 2005, 99.6 per cent of the UK will have access to broadband if they want it. Furthermore, the Internet was the fastest growing retail sector last year, attracting one in four shoppers.
Continue ReadingContinental To Raise Tyre Prices 3-8 per cent
Continental AG chief executive, Manfred Wennemer, plans to raise tyre prices between 3-8 per cent in the fourth quarter of this financial year, various news sources have reported. The increases “will take place in the last quarter of this year, most likely in November,” Wennemer told the magazine the German Autowoche magazine. He also said that the price increases are likely to take place somewhat earlier in the US. “It depends upon the product and the market. The way things look now, the price increases are likely to be a bit less in Europe than in North America, where we really get hit because oil is traded in US dollars so we wont get any benefit from the strong euro there,” Mr Wennemer told the AFX news agency.
Continue ReadingNokian i3 Aims At Volume Sector
Nokian has introduced a new tyre, aimed at small and family-sized cars. Called the i3, the tyre is T-rated and comes in 14 and 15 sizes, with a few 13 sizes also available. Altogether there are 11 sizes, for aspect ratios of 70, 65 and 60 series.
Continue ReadingArvinMeritor to Close Shock Absorber Plant
ArvinMeritor, Inc is to close its Light Vehicle Systems (LVS) shock absorber assembly operation in Pulaski, Tenn., US The company will transfer a portion of the production to its Detroit, Michigan, US, and Toronto, Ontario, Canada facilities, with remaining business being phased out by July 2006. The company met with employees today to discuss the transfer and closure plans, which will affect all 268 employees. “As announced in our second-quarter earnings release, ArvinMeritor identified the need to rationalize 11 sites, to further focus its businesses on serving customer needs and improve its return on invested capital,” said Sidney Del Gaudio, vice president and general manager of LVS Undercarriage Systems. “Pulaski was one of the 11 sites chosen because its overall costs exceeded the short- and long-term returns required to sustain the business and remain competitive.”
Continue ReadingSnap-on Five Year “Peace of Mind” Plan
Snap-on Diagnostics has announced a five year Peace of Mind plan for its Sun DGA 2500 Combi MoT-approved gas and smoke diagnostic emissions analyser. Terry Smith, European Marketing Manager of Snap-on Diagnostics, said that the plan was introduced as a result of the companys 40 years experience in the UK automotive aftermarket and its constant communication with its customers. He says: Customers will be able to enjoy the peace of mind of knowing that their Sun DGA 2500 Combi is protected with a five year parts and labour warranty, five years VOSA vehicle limits software updates plus five years calibrations, supported by our own UKAS accredited Field Technicians. The plan is available at a typical weekly cost of just over £40.
Continue ReadingMRF’s Q3 Net Profit Dips
(India/Rubber Asia) MRF, the Indian tyre major, has reported a drop in net profit to 168.8 million rupees in the third quarter ending 30 June 2005, compared with 170.9 million rupees in the same quarter last year. Net sales in the quarter, however, improved to 7,951.2 million against 6,562.2 million rupees in the same period last year. In the first nine months (October 2004 to June 2005), net profits dipped to 289.6 million rupees against 469 million in the year ago period, even as net sales rocketed to 21,850 million rupees as against 19,050 million in the same period last year.
Continue ReadingApollo Net Profit Up to First Quarter
(India/Rubber Asia) Leading Indian tyre maker, Apollo Tyres Ltd, reported a net profit of 166.9 million (£2.07 million) for the first quarter ended 30 June against 156.3 million rupees last year.
Continue ReadingTVS Srichakra rolls out ‘Magnificent Seven’
(India/Rubber Asia) TVS Srichakra Ltd, has rolled out seven new tyres for the aftermarket, with a view to increasing its share in the two and three-wheeler segment from the current level of 12 per cent to 20 per cent, according to Mr S Balasubramanian, vice-president (Marketing). Of the seven tyres, termed by the company as the “Magnificent Seven”, four are for motorcycles and mopeds while the remaining two are for autorickshaws. TVS Srichakra also plans to increase exports from 15 to 40 per cent this year, according to Mr. Balasubramanian.
Continue ReadingIndia’s Car Sales Slow
(India/Rubber Asia) Passenger car sales in India during the first six months of 2005 slowed down compared to the same period last year, according to Anang D. Jena, research director, Synovate Motoresearch. Total production of passenger cars in the January-June 2005 period was about 505,951 units, up by 12.5 per cent over the corresponding period last year. However, total sales during the period stood at 530,811 units, up only by 7.6 per cent over the same period last year.
Continue ReadingJK Tyre Plans to Double OTR Sales
(India/Rubber Asia) JK Tyre, one of India’s Big 3 tyre makers, is planning to double its turnover in the off-the-road segment from 350 million to 700 million rupees (roughly £4.35 million – £8.7 million) by next year, local media has reported. The company is also considering manufacturing tyres for 50 tonne rigid-frame dump trucks and 85 tonne trucks. It currently makes tyres for 35 to 40-tonne dump trucks. These, made for dumpers used in mining and quarries cost between 60,000 and 200,000 rupees (£750 - £2500).
Continue ReadingDeldo’s Increasing Exclusive Brand Winter Sales
Sales of exclusive brands are on the up, Belgian wholesale Deldo has reported. According to the company, its Eurowin, Wanli and Sunny brands make all the difference when it comes to winter sales. This year Deldo says it has increased its capacity of Nexen-produced brand Eurowin up to 550,000 tyres. Furthermore the company claims to have sold approximately half a million already, with over 60 per cent being delivered in the last three months. As far as the South China Tire Company-produced Wanli and Sunny brands are concerned, Deldo reports that stocks of Wanli have already sold out, with only five per cent of its Sunny tyres left.
Continue ReadingFederal’s 595 Performs in D1 Super Challenge
Federal’s 595 competition tyre has reportedly become something of a favourite amongst professional Japanese drifting drivers. According to popular Japanese drifting magazine, Drift Tengoku, 54 contestants participated in the recent D1 Super Challenge in Japan. Five contestants, 9.3 per cent of the total number of competitors, used Federal’s 595 on their vehicle. Second place driver Atsushi Goto used 215/40/17s on the front and size 215/45/17 on the rear. Atsushi Goto noted that the wear and tear on his 595s was minimal after the event, according to Federal.
Continue ReadingDunlop Invests £27 million on Factory Expansion
Dunlop Nigeria Plc, has invested an estimated sum of 6.5 billion naira (roughly £27 million) on radialising its plant technology with a view to further boosting the production of tyres for heavy duty vehicles. According to company, the Super Steel Radial Plant will be commissioned by Nigerian President, Olusegun Obasanjo, and will be capable of producing 300,000 heavy duty tyres annually. Furthermore, the expansion is expected to create 200 additional jobs.
Continue ReadingLead Weights Could be Phased-out of US Business by 2009
A recent report in US trade magazine, Tire Review, has suggested lead balancing weights could be phased out from the American market in 2009. The report follows the implementation of the European End of Life Vehicle Directive, which banned the use of lead weights on passenger vehicles from July 2005. The article encouraged US dealers to “start planning now for the same thing to happen here.” It also highlighted the fact that one balancing weight manufacturer, Perfect Equipment Co already produces zinc clip-on and steel adhesive wheel weights for GM, Ford, and DaimlerChrysler vehicles being exported to Europe.
Continue ReadingKumho to Help FAW Make Own Tyres
(Akron/Tire Review) Kumho Tire Co has signed a deal to provide First Automobile Works (FAW), China’s largest vehicle manufacturer, with tyre manufacturing know-how. FAW, which operates one of Volkswagen’s two Chinese joint ventures, will then be able to produce its own tyres for passenger vehicles. The $150 million cooperation agreement was signed last week during the China Jilin Northeast Asia Investment and Trade Expo. The expo was attended by Chinese and South Korean vehicle manufacturers and suppliers, amid signs, according to reports, that Korean manufacturers are increasingly interested in sourcing components from China.
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