BMW meets expectations
BMWs 3Q results were in line with analysts expectations, with revenue down slightly (0.3 per cent) at 9.945 bn Euro and operating profit eight per cent higher than expected, at 762 million Euro. On the positive side, the product mix improved, with increased volume for the 5-series and X5, while on the negative side, R&D costs increased as a percentage of sales, reaching 5.4 per cent.
Continue ReadingDunlop’s Super Sport Race in North America
Dunlop North America announced the SP Super Sport Race; a Z-rated radial designed for super car owners and autocross enthusiasts who want a non-competition, street-legal tyre that nevertheless has race-like levels of grip. The Super Sport Race is available in eight Z-rated sizes, with aspect ratios from 40 series down to 30 series and for 17 and 18 wheels. Target cars include Audi TT, A4 and A6, Porsche 996 and 986, BMW 3 series, 5-series, M3 and Z3, Honda S2000, VW Golf GTi and the Mercedes SLK, CLK, C-class and E-class.
Continue ReadingGoodyear expands hydraulic hose business
Goodyear Engineered Products has added high-pressure braided, spiral and thermoplastic hoses to its product range, making the company a full-line provider of hydraulic hoses and providing a single-source supplier to the sector. The US fluid power hose market is worth in excess of $1 billion and growing at an annual rate of over three per cent.
Continue ReadingAutoExCel to go ahead
After a lengthy period of research and consultation, the AutoExCel exhibition and event for the UK automotive aftermarket, is to go ahead in 2005, say organisers London Eventco. It will cover all sectors and products in the aftermarket and will be held at Londons latest exhibition facility, the ExCel complex in Docklands, from April 24-26 2005.
Continue ReadingRobert Keegan explains his seven-point strategy
In Las Vegas, where the SEMA show is currently taking place, Goodyear’s chairman, CEO and president Robert J. Keegan found the time for an exclusive interview with TYRES & ACCESSORIES. It wasn’t his plan, says Keegan, to only bring in new executives from outside into the company, but to promote long-time colleagues as well, if they were capable of leading. But Keegan doubts that those who have led Goodyear into the current crisis are those who can bring the company out of this situation. The chairman of the tyre maker calls this “changes for victory.” Keegan is convinced that right now he has the appropriate personnel aboard in order to move ahead with the company. Keegan points out seven key elements of his strategy: leadership, cash is king, cost structures, tapping the full potential of all channels of distribution, product leadership, build-up and upgrading of Goodyear’s brands, and an optimal supply chain. In Northern America Goodyear expects a remarkable improvement now that Jonathan Rich, who is president of North American Tire, has been able to hire the right team. According to Keegan this is “the best team we have ever had in this area.”
Continue ReadingAnd the Winner is: Michelin
During the last three years the Michelin group has made better progress on the American market than experts had expected. This progress was supported by the Firestone disaster at the end of the last decade. Additionally Michelin profited by Goodyear’s persistent bad shape. Talking to TYRES & ACCESSORIES, Jean-Michel Guillon, COO for Michelin Americas Small Tires (MAST), states unequivocally that the tyre maker does not write off or underestimate any of its competitors. But as a matter of fact Michelin’s North American business is excellent. Michelin’s three flag brands Michelin, BFGoodrich and Uniroyal are well-positioned, and every single marketing measure is aligned with other corporate marketing measures. Michelin clearly is the market leader, has the highest prices and the Michelin brand receives the best ratings from J.D. Power. The prospects for the company are promising.
Continue ReadingPirelli is on schedule
For Pirelli the current year is on schedule in the face of good sales and earnings. Higher prices for raw materials won’t burden Pirelli’s results before the new year. Talking to TYRES & ACCESSORIES at the SEMA show in Las Vegas, Dr. Francesco Gori, Managing Director of the Pirelli Tyre Sector, again affirms the good business in the USA. For the second time in a row Pirelli will end a year making a profit on the biggest tyre market in the world. This is even more remarkable, because Pirelli has just opened its MIRS-plant in Rome, Georgia, for which the company has incurred launch costs. During the last years the Italian company was pleased with an annual sales growth of about 20 per cent. This was partly because of the OE business Pirelli undertakes with car makers Ford and Chrysler. But not only that, the tyre maker has gained ground also on the replacement market after the sell-out through mass merchandisers has been stopped. In Latin America Gori expects Pirelli to be clearly number one ahead of Goodyear, whose Mexican activities structurally belong to the North American business (Nafta). The prospects are rather good that Pirelli will generate sales of more than 3 billion euro during this year solely with tyres; during last year this economic indicator stood at 2.857 billion euro. Exact figures concerning third quarter performance will be published on November 11.
Continue ReadingContinental Tire: Break even will be reached in 2005
So far the acquisition of General Tire in 1987 has not been a success story. During this year the loss will amount to 100 million Euro at least. This has to be changed, according to Conti’s chairman Manfred Wennemer and Martin de Louw who is responsible for Continental’s passenger tyre division and works in the North American headquarters in Charlotte, North Carolina. The two set out the goal: during the last quarter of 2005 the break-even point has to be reached. Wennemer puts his hope in de Louw as a new member of the board. De Louw in his strategy focuses on new products, the extension of low cost production sites such as Mexico, and the persuasion of a multi-brand strategy that in turn is borne by the brands Continental and General Tire. For the replacement market Continental hopes for good business with the car dealers because the tyres with the prancing horse have been widely sold on the OE market during the last couple of years – there will be a pull-through effect. Wennemer states clearly that Continental will continue its business with truck tyres in North America because this division has always been very profitable.
Continue ReadingJohn Lampe: “Family-Channel was our escape”
John Lampe, who is CEO of Bridgestone/Firestone Americas Holding and the first foreigner to become a member of the board of the Japanese parent company, certainly enjoys great respect among American tyre bosses. Even a forced tyre recall that cost the company more than 1 billion dollars couldn’t bring Bridgestone to its knees. After a billion dollar loss in 1999, last year Bridgestone/Firestone Americas could again report 90 million in profits. And this positive trend doesn’t seem to be coming to an end. “Obviously we are far away from what a business with an 8 billion dollar turnover has to achieve,” John Lampe tells TYRES & ACCESSORIES at the SEMA show in Las Vegas. Lampe doesn’t speak in terms of yesterday and today, but in categories “before and after the recall” and explains to T&A the measures taken for recovery and change. It is like this: all “core products” will be marketed exclusively through Bridgestone’s “Family-Channel”. As well as the Bridgestone sales chain, independent tyre dealers belong to the Family-Channel.
Continue ReadingGoodyear Latin America appointment
Eduardo A. Fortunato (50) has been appointed president of Goodyears Latin American tire business, succeeding Chris W. Clark. Fortunatos previous post of president and MD of Goodyear Brazil has been taken by Chris Corcoran, currently director of sales and marketing, Latin America. Fortunato joined Goodyear in 1975 in the Engineered Products division.
Continue ReadingBridgestone to supply Airbus with plane tyres
Bridgestone Corp, Japan’s biggest tyre maker, said on Wednesday that European plane maker Airbus will use its tyres on all its aircraft. Bridgestone, which already supplies tyres to Airbus’s rival Boeing, said in a statement that it had certified its tyres for use on all aircraft models, ranging from the long-range A330 to the single-aisle A320 planes. The deal follows an announcement in June that Bridgestone will supply tyres for Airbus’s A380 -- a next-generation super jumbo that is being touted as the world’s biggest passenger plane and is due to go into service in early 2006. A Bridgestone spokeswoman said the latest agreement would help boost sales of Bridgestone’s aircraft tyre business but would have a negligible impact on its earnings outlook. Bridgestone has one-third of the global market for passenger aircraft tyres, and its annual aircraft tyre sales came to around 10 billion yen (80 million euro), or 0.5 percent of total revenues, in 2002/03.
Continue ReadingGreen Marangoni tyres on Armani-designed Mercedes
The Mercedes-Benz CLK cabriolet is the first vehicle to come from the design partnership between the vehicle manufacturer and designer Giorgio Armani. The car will be fitted with Marangoni Zeta Linea tyres but, instead of the usual black, these tyres will be green in colour to complement the cars sand-coloured matt paintwork.
Continue ReadingNew Firestone race tyre
Firestone tyres have a long-standing association with the Indianapolis Motor Speedway (IMS) and the tyre company has produced a special edition Firestone Firehawk tyre which will be introduced next May, in the period surrounding the 88th running of the Indianapolis 500. Firestone is the official tyre of this race and the Indy Racing League. The new tyre sidewall will feature the IMS distinctive wing and wheel logo in full colour, alongside the Firestone name and logo.
Continue ReadingNew “Fuzion” brand from Bridgestone/Firestone
At the SEMA show, Bridgestone/Firestone North American Tire (BFNT) unveiled a new project vehicle, the Fuzion Civic Si, as a showcase for a new brand of tyres aimed at the tuner market. The new brand is called Fuzion and the tyres on the Civic Si project vehicle are size 225/45 ZR17. The car also incorporates a tyre pressure monitoring system, from SmarTire USA.
Continue Reading25″ tyre from Pirelli
Pirelli has introduced a new tyre, aimed specifically at the Hummer H2 tuner market, the Pirelli Scorpion Zero 315/40 VR25 XL. As well as looking good, Pirelli says that the XL rating means that the tyre can safely take the weight of vehicles such as the massive Hummer SUV. The standard OE size tyre for the Hummer is 315/70 R17.
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