Bandag Sells South African Operation
Bandag Incorporated has reached an agreement to sell its South African business to local management. The new company will be known as Bandag Southern Africa. The deal is due become effective as of 1 December 2004, with a long term licensing agreement expected to follow when transaction is completed. The multinational retreader points out that the South African operation represents less than 2 per cent of the Bandag’s total assets and contributed approximately $0.6 million to the company’s pre-tax income in 2003. The business will cost its new owners approximately $3.5 million. Payment will include a cash sum of $2 million with the remainder to be paid in equal instalments over five years. According to the company, the effect that this will have on the earnings of the businesss may fluctuate over the five-year period depending on the stability of the euro and the South African rand. The company says that the expected loss will not affect Bandag’s cash flow, but rather will be an accounting entry which will reduce net earnings.
Continue ReadingCooper to Appeal Against Injunction
Cooper has stated that is will immediately appeal to the US Seventh District Circuit Court of Appeals. The announcement follows a US District Court of Indiana ruling granting a preliminary injunction against the sale of four of the company’s 47 Cooper-Standard Automotive facilities. The facilities were due to be sold to an entity formed by The Cypress group.
Continue ReadingThe Russians want Vredestein
Russia’s largest tyre manufacturer, Amtel, wants to take over Vredestein’s tyre unit. The Dutch manufacturer’s CEO, Rob Oudshoorn, confirmed with Tyres & Accessories that “detailed discussions” are well underway and an acquisition could take place in early 2005.
Continue ReadingPoint S International Keeps on Growing
The leading network of independent tyre dealers in Europe is set to grow. The Hungarian point S organisation has recently added seven new Service Centers so that the overall coverage in Hungary is nation-wide now with 37 of these centres, according to a statement released by point S International. The company says that a further growth of the number of service stations is very likely. 1,500 service centres in nine European countries are part of the point S International organisation. Countries represented include Germany, Austria, Denmark, Belgium, France, Italy, Spain, Poland and Hungary.
Continue ReadingCITEXPO Dates Announced
The dates for the next China International Tire Expo in Shanghai, the so called CITEXPO, have been fixed. The show’s organisers, Reliable, again expect a large number of exhibitors and visitors to attend one of the most interesting cities in the world. The third CITEXPO will be held on December 14-16, 2005 and will take place in the Shanghai Everbright Convention & Exhibition Center.
Continue ReadingContinental Continues Strong Performance
Continental has released third quarter profits that show what the company calls “another record-breaking performance.” The international automotive supplier increased its consolidated sales in the first nine months of 2004 by 8.6 per cent. In the first nine months the figure, including foreign exchange effects and consolidation changes, totals at 9.214 billion euros compared with 8.485 billion euros the same time last year. The was little mention of the costs incurred by the company’s failed Russian joint venture.
Continue ReadingDunlop Gives Away free ‘Treadheads’
Just a few days after unveiling its new Direzza DZ101 tyre, Dunlop found a number of volunteers willing to sit in the “chair.” The barbers chair, that is.
Continue ReadingShanghai Tyre to invest in Michelin Venture
The AFX news agency has reported that Shanghai Tyre and Rubber Company has approved two separate investments totalling 263.55 million yuan (£17.2 million), to be put into a subsidiary and its current joint venture with Michelin.
Continue ReadingEmerging Market
When companies based in the world’s most populated country, the People’s Republic of China, make decisions, they affect everyone. That’s why next month’s Tyres & Accessories will include a cover story investigating the world’s foremost emerging market. Providing an in-depth introduction to the Chinese market, the feature will investigate the market’s background while reporting on some recent developments and shedding light on future business opportunities.
Continue ReadingVredestein Launch UHP Winter Tyre
According to Vredestein, winter didn’t begin until it had launched its new winter tyres. Described as “extreme design and function combined in an ultra high performance winter tyre,” the Swiss launch of the Dutch company’s latest offering was always going to be an interesting event. So far the company has remained tight-lipped about its latest product. Tyres & Accessories will report from Switzerland where invited guests will be given the opportunity to test the new tyre under what the company calls “extreme conditions,” including mountain top snow.
Continue ReadingWholesalers
Wholesalers are an integral part of the tyre industry’s supply chain, but which companies are the most influential and why? The next edition of Tyres & Accessories will take a look at the business of tyre wholesaling, covering the latest news and featuring the key players and their private brands.
Continue ReadingSafer Riding
Advanced braking systems are commonplace in today’s passenger cars, with the majority of new cars featuring ABS as standard. A lesser-known fact is that it has also been available to motorcyclists for more than a decade. Even so, usage of ABS technology amongst motorcyclists lags far behind their four-wheeled counterparts. Continental Teves recently launched its first advanced braking system designed specifically for two wheels. Tyres & Accessories took a look at the technology when it was launched at Intermot 2004 in Munich. Intelligent braking The technology behind Continental Teves’ system is designed to continuously evaluate the signals from the wheel speed sensors, allowing it to identify a dangerous situation before the wheel locks. In a hazardous situation the unit reduces the brake pressure on the affected wheel and quickly boosts it again in order to ensure maximum braking power when the risk of locking has passed. The whole process is completed in a fraction of a second. The company claims that its analog-controlled digital valves make this pressure modulation process both smooth and effective. The system also allows for variables such as the actual load (solo or with a passenger) and the grip offered by the road surface, so when the ABS system is triggered, each wheel is kept within an “ideal” range. According to the manufacturer, the outcome is the optimum deceleration values with the minimum amount of effort on the part of the rider. Continental Teves’ integral brake system allows riders to depress the lever or pedal and build up pressure respectively in either the front or the rear brake. At the same time a pump automatically builds up pressure in the brake circuit not operated directly by the rider, taking account of the specific parameters for the motorcycle concerned and the necessary brake force distribution between the front and rear wheels. The products designers also claim that it will be prepared for the high levels of brake-force demanded by emergency situations. Continental Teves claims that its system can manage the dynamic disparity that occurs between the front and rear brakes in emergency situation. This means that is would be possible for the rider to perform an emergency braking manoeuvre with just one pedal or lever. One of the additional benefits that the company highlight is its rear wheel lift-off protection function, called RLP. RLP is designed to briefly reduce the pressure in the front brake circuit whenever the sensor signals indicate that rear wheel lift-off is imminent. This maintains the minimum load on the rear wheel necessary for lateral guidance, and prevents against the dangerous affects of a rollover.
Continue ReadingSauber to Use Michelin Tyres
Sauber Petronas has announced that it will swap tyre supplier from Bridgestone to Michelin. The new contract with French tyre manufacturer will come into effect immediately, Sauber said in a press release. According to the statement, the team will conduct its first test with Michelin tyres at the end of November in Barcelona.
Continue ReadingAre Truck Tyre Dealers Being Relegated to Service Providers?
The subject of how to sell truck tyres is certainly a contentious issue. All parties involved feel strongly about their respective positions. If you ask a tyre dealer what they think about this question, the chances are they wont be happy with the status quo. But, as far as the large manufacturers are concerned, selling direct to fleets and supplying the associated services is the only way to give customers what they demand. However not everybody agrees. Other brands support the supply chain, ‘the way it has always been’. Tyres & Accessories invited readers and industry members to comment on our website’s ‘question of the month’: Are Truck Tyre Dealers Being Relegated to Service Providers? One reader’s comment sums up the argument from the independent dealer’s point of view: “Manufacturers have enough influence through OEM if they sell direct to fleets they will force out independent retailers who are the lifeblood of the Industry and we are liable to get a “committee” of “big brother” manufacturers deciding who, what, where and when, which is not in the interests of the fleets or independent Retailers. Some companies take an arguably more ‘pro-dealer’ stance. “Cutting out the middle man is not an advantage,“ says Westlake Tyres UK and Europe business manager, Rob Henderson “As far as Eskay Tyres is concerned, we would rather support wholesalers. There is a system, a chain and that’s the way it should be done.” Philippe Verneuil, chief operating officer, Michelin truck tyres Europe agrees. Speaking to an IAA press conference in Hanover he affirmed, “we have to ensure that we continue to serve loyally and effectively.” A reader from the UK added his opinion: “This is a question of meeting customer needs - the industry would much prefer the status quo, but today the customer asks for something else, which can only be delivered by a multi-national organisation, but this does not necessarily threaten the tyre retailer - it gives him another opportunity.” The fact is, no simple answer exists. According to another T&A reader, the problem is: “The modern fleet user depends upon time sensitive data being made available to him at the click of a mouse. Many dealers are well on the way to being able to handle the most complex of end-user business but, like any ‘chain’ it is only as strong as the weakest link so, until all dealers are equally well equipped, we must expect the manufacturers to take the lead in this market place. They, in the main, can handle the processing of data.” The last word goes to a reader who thinks there is a much simpler solution. “There should be cooperation between retailers and the industry.” While some parties would argue that is already happening, like the subject in general, it is unlikely that everyone will agree.
Continue ReadingPossible Price Increases for Continental
Increasing steel prices have led the board of Continental AG to take price increases into consideration, the company says. “Should there be more raw material price increases, higher prices on the replacement market cannot be ruled out,“ said board member, Dr Alan Hippe. At the moment the company is in talks with the car industry over the steel price situation. Meanwhile natural rubber prices are said to have reached their peak.
Continue Reading