Kwik-Fit moves up a gear
It was in August last year that Tim Parker (48) was named as the new Chief Executive Officer of Kwik-Fit, following the purchase of the company from Ford by CVC Capital Partners for a reported £330 million.
Continue ReadingDekk Partner aims to develop the independent market in the face of multinational competition
The Nordic Market is very different from the highly developed mass markets of the UK or Germany – both of which are recognised as the most highly developed markets in Europe. The Nordic market might be considered to cover essentially Norway, Sweden and Finland, and possibly Denmark – depending upon your point of view or your business strategy. In any of these countries logistics would give most typical regional wholesalers nightmares. In the case of the three northern countries deliveries are hampered by long distances, less developed road networks, and for around half the year, bad weather conditions – not to mention fjords and ferries in Norway. Denmark, being more densely populated and considerably less mountainous has a better transport system, but also relies heavily on ferries between the islands that make up much of the country. Leif Kristiansen has a long history in the tyre trade and in 1993 was working with Vianor when he saw the need for a tyre retailer group that not only served as a buying point for tyres, but as a much wider partnership aimed at helping the independent tyre retailer compete in a market increasingly dominated by equities. Leif Kristiansen says, Dekk Partner is owned by the members, each with one share so that there is no controlling member. That is very important. There are no suppliers involved in the group and no producer can buy shares. We want Dekk Partner to be fully independent. Our members are free to buy and sell what they want from whoever they wish but we do have a loyalty rebate scheme for our members that encourages them to buy within the group. It is highly successful. With respect to the suppliers, there are none with a contract any longer than two years. So irrespective of the brand or the manufacturer, we work on two year contracts to keep the standard of service provided as high as possible.
Continue ReadingBrian Smith talks about Continental
Some 18 months after Continental divested itself of NTA Retail, NTA Commercial and Viking International, T&A approached Brian Smith to find out how Continental Tyre Group was managing in its current format. After all, the complete closure/sale of a manufacturers equity is not an every day occurrence and must have had negative effects on Continental’s business in the UK. Brian Smith knew that the performance of Continental Tyre Group without its UK retail and wholesale operations was going to be at the heart of the matter and he went straight to the point. Continental Tyre group has shown its ability to handle change both quickly and professionally. One of our great strengths is the ability to make decisions, act on them and adhere to them even though they may be difficult courses of action to follow. We can spot opportunities and act quickly to take advantage of them. That is one of the core policies at Continental, to take opportunities and to handle changes when things don’t work out as planned. There is a table in reception that carries the Continental Mission Statement: To establish Continental Tyre Group as the most professional supplier of quality tyres and customer services, respected for consistent, stable, business relationships. To be known for understanding the customers needs and for being responsive in meeting them. That is a benchmark for the standards we apply at Continental Tyre Group and we need to ask ourselves, are we really like that? If we are to achieve that mission it is the customer services element which is particularly important. Then we need to consider how we think internally and what our aims are within Continental Tyre Group. It is in many ways more important therefore to differentiate ourselves from our competitors by the way we handle our customers to develop consistent business relationships.
Continue ReadingFit4Fleet expands into Irish Republic
Fit4Fleet, the GM-backed network of independent tyre dealers supporting company car fleets, has extended operations to provide coverage in the Republic of Ireland as part of plans to provide customers with extensive coverage throughout the British Isles. Managing director, Dominic Bateson, believes that the move will also bring a great improvement in the service standards enjoyed by fleet drivers in the country, saying: Most of the tyre chains that have traditionally serviced fleet drivers are concentrated around the main conurbations, such as Dublin, Cork and Waterford. But what use is that to drivers having a tyre problem out on the road, many miles away from one of those cities? Their needs have to be catered for also. To us, this was an obvious gap in coverage and one of our core objectives has been to establish a comprehensive spread of centres throughout the Republic, so that when a driver has a problem, assistance can be provided promptly. Fit4Fleet already has 60 centres in the Republic, with at least one in each of the countrys 26 counties, and personnel at each centre have undergone training to ensure that they are fully able to meet the standards required. This means that the network now numbers more than 900 depots in the UK and the Irish Republic.
Continue ReadingTWS wants to become the market leader in agricultural tyres
Two years ago Trelleborg took over from Pirelli the 40 per cent share of the former commonly owned company Trelleborg Wheel Systems (TWS), which produces agricultural tyres. Now TWS aims at becoming market leader with its two brands Pirelli and Trelleborg. A major part of this strategy is improving the name recognition of the Trelleborg brand, which up till now has been regarded as another name for bias ply tyres within the TWS-group while Pirelli covered the radial segment. In addition to that TWS is thinking about bringing another brand into the company’s portfolio. Whether this will be accomplished by the creation of a completely new brand, or by the acquisition of a known brand, has not been decided yet, Maurizio Vischi, president of TWS, told Tyres & Accessories. The Swedish corporate group Trelleborg, named after the town where it is located, has reached a turnover of about 1.95 billion Euro and has almost 15,000 employees. As one of four Business Units, Trelleborg Wheels Systems (TWS) contributes about 330 million to the overall turnover, with 2,380 employees. When it comes to the agricultural tyre segment, the direction of the TWS brands has been contrary. While the Pirelli brand was regarded as a synonym for the use of radial technology for agricultural tyres, the Trelleborg brand stood for bias ply forestry and implement tyres. Slowly, the boundaries seem to become blurred. For example, the new TM 2000 radial tyre for harvesters, and a new radial implement tyre, are produced with the Trelleborg logo on the sidewall.
Continue ReadingCreating a winter tyre market
When we contacted a number of tyre manufacturers to obtain information for this feature, we received a number of reactions along the lines of Winter tyres? Theres not much call for them in the UK. Some companies had to contact their mainland European offices for product details and the situation is neatly summed up by the fact that, if you want Michelins latest high speed winter tyre in the UK, it has to be ordered specially. Perhaps this is not that surprising, as there is a shortage of winter tyres in mainland Europe, caused by the long winter which went on into March this year. One estimate is that winter tyre inventories are now around 15 per cent below normal, at six million units. But the UK winter tyre market is minimal, mainly because we have light snowfalls over much of the country. However, you do not need snow for a winter tyre to be effective and to improve driver safety. The main supporter of this view is the head of Vredestein UK, Bert Stellinga. When he first came to the UK, he declared himself amazed at the tiny size of the UK winter tyre market and it is his ambition to see this grow. If they are not designed for snow, then why fit winter tyres? The simple answer is that, when it is cold and wet – which, lets face it, is more typical winter weather than snow – a winter tyre performs better than a summer version. Research showed that, in these conditions, braking distances were significantly shorter for winter-shod vehicles. The figure that you will see mentioned throughout the articles in this feature is +7ºC; below this, winter tyres outperform summer tyres. Vredestein wanted to enhance winter tyre sales, so the company joined forces with a medium-sized car leasing company and the Euromaster chain of tyre retailers. The leasing company was looking at ways to differentiate itself from the herd and, after being convinced by a series of braking tests that stopping distances were indeed shorter on winter tyres (and by analysing accident statistics and finding that more happened in the winter) it came on board. Says Bert Stellinga: Back in 1995, winter tyres accounted for half of one per cent of Dutch tyre sales and, by the end of 2002, it was up to around seven per cent he remembers. If we accept the rough figure of 25 million tyres in the UK replacement tyre market, then seven per cent equates to 1.75 million tyres, which is a figure that should be of interest to the manufacturers and to the tyre dealers too.
Continue ReadingDirect Tyre Pressure Monitoring System From TRW
TRW is introducing its second generation direct Tyre Pressure Monitoring System (TPMS) for a major Japanese vehicle manufacturer on a 2004 model year application.TRW, in c-operation with Michelin, has developed the EnTire Solution, an advanced direct TPMS. The system delivers accurate readouts and has the ability to indicate what tire is under-inflated, front or rear, left or right, and offers other major benefits to the driver. Using predictive algorithms, the driver can be warned that there will be a low-pressure tire problem in the near future. This alerts the driver to take action before getting on a long stretch of motorway. False alarms are another concern that can cause a true low-pressure warning to be ignored even by the most conscientious driver. TRW Automotive and Michelin have incorporated such advanced monitoring algorithms into the EnTire Solution TPMS that detect slow leaks, yet also account for driver habits and environmental conditions to reduce the occurrence of false warnings.
Continue ReadingGoodyear Two Piece Tyre
Goodyears Two Piece assembly is not a tyre. Goodyear is initially offering the Two Piece Assembly in a 45R57 size for large haulage trucks. Insiders at Goodyear are quick to clarify that its newest product is not a tyre. Its a multifaceted assembly meant to solve many of minings challenges, said Tom Walker, general manager of off-the-road tyres. It offers many benefits such as reduced downtime from tyre changeovers, higher payload capabilities, improved traction, handling, stability and ride on haul trucks, not to mention increased productivity and cost per ton savings. I would compare it to buying a stereo, said Perry Martenny, team leader for off-the-road tyre programs. You can buy a stereo as an all-in-one unit or buy it a piece at a time. Think of the Two Piece Assembly as a component system. Like the name suggests, the Two Piece Assembly consists of two separate but vital pieces. The assembly consists of a casing and a treadbelt package. The two pieces have corresponding grooves that interlock during assembly. Once assembled, the two pieces are held together by the air pressure in the inflated assembly.
Continue ReadingPirelli First Half Figures
First half sales of the Pirelli group totalled 3.022 billion Euro, down 9.8 per cent on the 1H 2002 figure of 3.35 bn Euro, preliminary, unaudited figures show. However, when exchange rate fluctuations and changes due to consolidation are factored out, sales actually increased by 3.3 per cent. Operating income was 118 million Euro, due largely to a growth (net of exchange rates) in the tyre sector of 14.4 per cent, with sales at 1.509 bn Euro.
Continue ReadingSmuggled Tyres A Multi-Million $ Problem For Pakistan
Tyre smuggling costs the Pakistan Government 1.25 billion Rupees (US$ 21.73 million) a year in lost import duty and sales tax. An estimated one million tyres are illegally imported, many originating in Japan and India.
Continue ReadingContinental Results Exceed Expectations
Continentals 2Q results have exceeded the forecasts of industry experts. Compared with 2Q 2002, turnover was down 3.4 per cent to 2.825 billion Euro (2.925 bn), but operating income rose 11.3 per cent to 216 million Euro (194 m). The groups operating margin was 7.6 per cent and, while the car tyre and truck tyre divisions were slightly below this (6.7 and 7.4 per cent). ContiTech and Continental Automotive Systems achieved 8.5 and 9.0 peer cent respectively. Contis CFO Dr. Hippe was cautious about the second half of the year, although he said that annual operating profits could considerably exceed the stated target of 700 million Euro.
Continue ReadingQ2 Net Loss For Goodyear, But Sales Rise
Goodyears second quarter (Q2) figures reveal that the company lost $73.6 million, compared to a net income in Q2 last year of $28.9 m. Sales were up nearly 8 per cent at $3.8 billion (3.5 bn), but volumes were down half a million units to 52.8 million pieces. Chairman and CEO Robert J. Keegan described the results as „disappointing“, but said he was encouraged by the „numerous positive trends„ (notably operations outside North America) and he was „optimistic“ about the turnaround plans.
Continue ReadingGoodyear/Steelworkers To Resume Talks
Goodyear is to resume talks with the United Steelworkers of America next week in Cincinnati, concerning a master contract agreement, covering some 16,000 associates at 14 facilities. Talks have been stalled since the USWA rejected a company proposal in June.
Continue ReadingMichelin’s First Half Figures – A Mixed Bag
Michelin has released financial figures for the first half of the year. Sales were down 6 per cent to 7.348 billion Euro, but excluding currency effects, this would be a rise of 4.4 per cent. Operating profit rose one per cent to 578 million Euro and net income was 165 million Euro; below what was expected, but this was almost entirely due to charges of 178 million Euro for restructuring in Spain. Truck tyre sales were better than expected, while car tyre revenues were worse. Michelins debt increased by 0.1 billion Euro to 3.9 billion, due largely to the acquisition of the Viborg chain.
Continue ReadingNew Goodyear OTR Tyre For Mines
In the USA, Goodyear has introduced a new OTR tyre, aimed at mining applications, size 45R57. The tyre is made in two pieces, with a casing and tread belt package that lock together and which are held together by air pressure. The tread belt package is replaceable and, should part of the tyre become damaged, replacement can be made in a fraction of the time needed for a conventional tyre.
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