Yokohama To Postpone Advan Launch
Yokohama has cancelled the European launch of the Advan range of tyres, scheduled for the Frankfurt International Motor Show. The high performance brand may be introduced at a later date, but no details of if and when have been released.
Continue ReadingUS Court Rejects Tyre Monitoring System Regulation
In the USA, a panel of three federal judges has rejected a proposed tyre pressure monitoring system (TPMS) as it allowed too great a margin for error. TPMS was made compulsory in new cars following the Ford Explorer/Firestone tyre episode. The National Highway Traffic Safety Administration was ordered to come up with a TPMS for cars and it offered two systems – one which required a sensor on all four tyres (direct system) and one which used existing technology systems, such as ABS, to estimate pressure (indirect system). Consumer groups claimed that the second system was not effective all the time, and thus did not meet the laws requirements, and the judges agreed, ordering the NHTSA to formulate a new rule. The argument of the consumer groups was that indirect TPMS works by comparing the speeds of two diagonal wheels with the other two diagonal wheels and, as such, cannot tell whether all four tyres are under-inflated or whether two tyres on the same axle or the same side of the vehicle are under-inflated. The judges accepted this view and one of them, Robert D. Sack, said The record discloses that the added cost for a system that worked all the time, rather than half of the time, was less than $10 per car. A possible beneficiary of the ruling could be Goodyear Tire & Rubber, which has developed a direct monitoring system in partnership with Siemens VDO, whereby a computer chip embedded in the tyre warns the driver of air pressure loss via radio signals to a dashboard display. The system is currently being tested by several vehicle manufacturers for their 2006 models. A Goodyear spokesperson said we think the debate will continue between the automotive industry and consumer groups for a while. Either way, we support tyre pressure monitoring systems. Consumer groups were less diplomatic, hailing the decision as perfect. Clarence Ditlow, executive director of the Center for Auto Safety – a frequent critic of the auto industry – made his position plain when he said This decision will block the pro-industry, anti-consumer, deregulatory campaign of the Bush administration. This is a reference to the fact that it was the White Houses Office of Management and Budget, which had wanted a TPMS that was less costly than direct monitoring. For the vehicle makers, a spokesperson for the lobbying group the Alliance of Automobile Manufacturers said that the AAM prefers a system that would allow auto manufacturers to choose between technologies. The spokesperson added: the cost gap between the direct and indirect systems appeared to be wider than that cited in the ruling, which would appear to be an indication that we may not yet have heard the last word on the subject.
Continue ReadingAt Your Leisure
When you think of tyres, it tends to be the most common products such as car, truck, motorcycle, agricultural and so on. However, there are many other types of tyres which, while they may not involve volume production or long runs, are designed to fill the needs of specialised niches – ATVs, grass machinery and so on. Like most niche products, these can be very profitable; indeed, there are some companies that produce only these products. Specialising in specialisation, you might say.
Continue ReadingTyre manufacturers report first half results
A number of tyre companies have published financial results for the first half of the year, with figures varying from not-so-good to impressive. These are analysed in detail in the magazine, but some brief highlights are as follows: Michelin: 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, where 1,200 jobs will go over the next three years. At an analyst meeting, Michelin executives were extremely cautious concerning the outlook for the rest of the year, forecasting a drop in volume for the second half and only a slight improvement in the impact of currency fluctuations. Other obstacles to improvement are the continuing high costs of raw materials and the continuing losses of the recently-acquired Viborg chain. The acquisition was a major factor in the 0.1 billion Euro increase in Michelins debt, to 3.9 billion Euro. Goodyear: 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. The single most important factor in the deterioration of operating performance was an increase in raw material costs of around, $124 million, said Goodyear, even though this was offset in part by cost reductions, improved price and mix and a positive currency translation benefit of some $9 million. The net loss for the first six months of the year was $236.9 million (1H 2002: $34.3 million loss). The 2003 figures included a rationalisation charge of $78.6 million to cater for staff reductions, while the 2002 figures were boosted by an income benefit of around £10 million as a result of the Ford tyre replacement programme. Sales for the first six months of 2003 reached $7.3 billion; 7.6 per cent up on the 1H 2002 figure of $6.8 billion. Tyre unit volume was down at 105.4 million units (106.3 m). Continental: 2Q results 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), against a forecast of 187 million Euro. Of the four divisions, Car Tyres, Truck Tyres and Continental Automotive Systems (CAS) all showed slight reductions in turnover compared with 2Q last year, while ContiTech was up slightly. When it came to operating income, however, Truck Tyres was the only sector to show a decrease, while the best performance came from Car Tyres, which posted a 44.2 per cent improvement. 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 CAS achieved 8.5 and 9.0 per cent respectively. Industry analysts were pleased at the figures, saying that the group is exhibiting improving internal dynamics and a favourable mix of businesses with some growth and some cash flow contributors. Trelleborg Wheel Systems: TWS achieved sales for the first half of the year of 1,470 million Swedish Kroner (SEK), or 160.2 million Euro. Operating profit was up 33 per cent to SEK 84 million (9.15 m Euro), compared with last years first half figure of SEK 63 million (6.87 m Euro). During the second quarter, turnover was SEK 713 million (77.7 m Euro) and operating profit was SEK 39 million (4.25 m Euro). Operating profit was favourably affected by the companys restructuring programme, an improved product mix and increased productivity. High raw material prices were partially offset by price increases, especially in farm tyres.
Continue ReadingRetreading Equipment and Machinery
Yes, we know that times are hard for retreaders, with price pressure due to competition and raw material costs. Then there are the requirements of ECE 108 and 109 – more trouble and expense. To survive, todays retreader has to produce a quality product that performs with the best of them and one of the keys to quality is the latest machinery. Whether it is buffing, extruding or non-destructive testing, the kit available to retreaders has become ever-more sophisticated.
Continue ReadingWheels
One of the few parts of the car to be regarded as a fashion accessory, the numbers and types of wheel design is constantly growing and changing. We take a look at what is on offer in the way of latest styles for the fashion-conscious motorist.
Continue ReadingMichelin Agricultural Developments
In the summer of 2002 Michelin launched the Kleber KAPS promotional campaign. This was a points-based incentive scheme for the agricultural sector. Dealers received points based on the number of Kleber tyres purchased. These points could be traded as they were accumulated, for a range of services and products. The points could gain dealer overalls, training sessions, or tickets for Formula One, as they desired. KAPS is one of several similar projects across Europe and the success with which these incentive programmes have met has led to a development of the programme to be launched in 2004. Dave Crinson, head of agricultural tyres at Michelins UK office, told T&A that dealers had responded positively to the scheme and the uptake on training sessions was particularly strong along with the alignment equipment and overalls. This is an excellent outcome especially if we can get more dealers on-board with our training schemes, he added. Stephane Bonnard, head of marketing for agricultural tyres, pointed out that although the KAPS programme was continuing to run and had been successful to a degree, like any of these projects it was open to restructuring. One of the areas where we believe dealers will be interested in is if we broaden the range of products covered by the scheme. This is something reflected in other European markets too. From the outset Michelin in France had been watching the KAPS scheme very closely and they have now taken it on board and whilst we will continue to run KAPS and offer the benefits, the scheme will be relaunched in 2004 with coverage to include the three key brands. Michelin of course will be the premium brand, with Kleber as the premium/value brand and BFGoodrich as the value brand. All three brands will be offered through our direct sales team to end users and dealers. Taurus and Kormoran will continue to be sold as a value and budget brand through wholesalers and will not be included in the new scheme.
Continue ReadingTiger Wheels’ Profits Rise
South African company Tiger Wheels, which claims to be Africas largest producer of wheels and distributor of tyres, has reported an increase in profit for fiscal 2003 of 41 per cent, to 114,9 million Rand (14.7 million Euro). Tigers shares rose 3.6 per cent at the news, to reach 14.5 Rand (1.85 Euro).
Continue ReadingFerrari Admit To Whistle Blowing
In an admission that surprised nobody, Ferrari admitted that it was the source of the complaint to the FIA about Michelins allegedly-illegal Formula 1 tyres. The complaint was made after the Hungarian Grand Prix, which saw the World Championship lead of Ferraris Michael Schumacher cut to just one point. Michelin, who denies that its tyres contravene FIA regulations, was talking about a boycott of the next F1 race (Monza, 14 September) but the company is believed to be working on getting re-designed tyres ready for the event.
Continue ReadingBridgestone to expand production of truck and bus tyres
Bridgestone Corporation has announced that it will increase production capacity of truck and bus radials at three plants in Japan, and will double the planned capacity at a plant currently under construction in Thailand. The reason is to cater for continuing growth in global demand for truck and bus tyres. Production at the three Japanese plants at Amagi, Tochigi and Tokyo will increase to 1,300 tyres per day, thanks to an investment of two billion Yen (US$16.86 million), with expansion work expected to be complete by the end of 2004. In Thailand, subsidiary company Bridgestone Tire Manufacturing (Thailand) Co. Ltd., has doubled the capacity originally planned for the plant it is building in Chonburi. Construction work began in February this year and the plant will begin production in the second half of 2004, with a daily production of 2,500 tyres. The latest expansion plans will see this increase to 5,000 tyres a day by the end of 2006, and they will cost seven billion Yen ($59 m), bringing the total investment in Chonburi to 24 billion Yen ($202.3 m). These projects are part of Bridgestones on-going, global plans for expanding production capacity in radials for trucks, buses and passenger cars. Car tyre investment will address the shift in demand towards larger sizes and high-performance tyres in the mature markets of North America, Europe and Japan. At the same time, it will cater for growing demand for standard tyres in Asia, the Middle East and Africa. The Bridgestone group has earmarked around 90 billion Yen for its capital spending programmes by the end of 2006.
Continue ReadingRecycling Ireland
Ireland, the Emerald Isle, the land that has made green its own colour, yet there is nothing much green about the waste management infrastructure North or South of the border. Waste has not been a priority problem until recently. The local authorities, certainly in the North were at one time expecting a further delay in the implementation of the Landfill Ban on whole tyres. Their reasoning was that there quite simply were no suitable alternatives available. There were no tyre shredding facilities in Ireland. However, the UK government has in its now traditional style not only adopted the latest legislation to arise as a result of an EU directive, but is intent on implementing the new law. That is creating a peculiar scenario in Northern Ireland where, as the deadline approaches, there is still no route to disposal, save shipping them to the UK, or perhaps to the Republic. The former is costly, and the latter may not be sustainable in the long term. With nowhere to take these tyres the gate fees are bound to increase in the run up to the ban, and as the cost of disposal rises, the attraction of players to the market will also increase. However, unlike the mainland UK, there is no widespread network of retreaders or collectors seeking to expand their business into shredding. That makes the Northern Ireland situation one of interest and we spoke to Lynn Kerr, the managing director of ADCO retreading and power behind R4 Tyre Recycling in Portadown to get the lowdown on the Northern Ireland situation. The situation in the South is similar to that in the North in that there is no widespread tyre collection service. We are advised that what competition exists does so courtesy of a loose application of the law. As in the UK, waste carriers need to be licensed, but rather than a single license giving rights to operate nationally, the licences are issued on a county basis, so to collect in County Cork and shred in Louth, one needs to hold licenses for every county between. However, Ireland has a hidden competitor in tyre collection, something it has in common with France, the agriculture sector in the republic has some 140,000 individual farmers, of whom we are informed some 80,000 might be involved in making silage. With some 40,000 tyres each year allegedly going to silage that averages out at 500 tyres per farmer. Farmers can collect without license, apparently, and there is no monitoring of their collections as of yet. This is obviously something that needs to be controlled if tyre disposal is to be legitimised and any environmentally effective recycling is to take place. The Irish government cannot expect retailers to pay the licensed tyre trader 2 Euro per tyre when they can have their local farmer take them for 50 cents a time. Far be it from T&A to accuse Irelands farmers of collusion in avoiding the law, but if those figures are correct, either the agricultural sector is dumping tyres in some hidden corner of a forgotten field, or the whole of Ireland is gradually going to be covered in tyres used for silage. Ultimately, the only thing green about the Emerald Isle would be on the mould and algae growing on their rotting surfaces.
Continue ReadingMotorsports point the way for Kumho
While not one of the worlds giant tyre manufacturers, Kumho is in the top ten and the company realised some time ago that it needed to concentrate on its overseas activities if it were to grow, but this is easier said than done. There is no doubt that established brands have a terrific advantage – everybody knows their name and they have decades of history behind them. Of course, this has not been achieved overnight and is the result of many years of effort and considerable financial outlay and it is a daunting task for a comparative newcomer into a market to try to get its name known, especially when the target is a considerably shorter time frame than decades. So the question is how to boost awareness in a number of diverse markets across the globe in a manner which makes economic sense? Different countries have differing cultures and tyre requirements, but Kumho realised that a common factor – and one popular in most countries – was that of motorsports. Thus it was that, in the 1990s, Kumho began to develop its involvement in international motorsports, in a strategy that was to become central to the worldwide marketing of the Kumho brand. This strategy is by no means unique – after all, the Yokohama brand established a reputation for high performance in the UK after cars shod with its tyres won four consecutive British Touring Car championships from 1990 to 1993. However, the biggest pitfall in such a strategy is that, if you are going to go down the motorsports route, then you have to be sure that you are going to be good at it and you need implicit faith in the product. You also need to divert considerable resources towards R&D and to provide the technical back-up that so many motorsports events require nowadays – the tyre manufacturer has to do so much more than merely provide tyres. This, then, was the route that Kumho decided to pursue and the quality of the racing product has been proved in competition over the years. Perhaps the highest-profile recognition came when Kumho ECSTA S700 tyres were adopted as the control tyre for the Formula 3 Euroseries, which is a series of 10 races, taking place in five different countries (Germany, France, Italy, Austria and The Netherlands). Further recognition came in 2002, when Kumho signed a five year contract as the official tyre supplier to the Marlboro Masters of Formula 3, which brings together the best drivers from various European national championships. Last year Kumho was the control tyre for the first time and the lap record at Zandvoort in The Netherlands was broken – a dream start for the Korean company. This years Marlboro Masters was contested by 49 drivers from 20 countries and for some of them (notably those from the British and Italian championships, which use another make of tyre) this was their first experience of racing on Kumho tyres. The race took place on a blisteringly-hot day at the Zandvoort track, attended by 55,000 spectators. Kumho branding was much in evidence and, indeed, the company has a very close association with the venue, having adopted a corner at the circuit in order to capitalise on the estimated TV audience of up to 800 million for last years event.
Continue ReadingMarangoni Tread success in Brazil
A success story for Marangoni is its activities in Brazil, thousands of miles from its European activities. Marangonis involvement in Brazil began in the early 90s as a partnership with Brazilian market leader UNISA for the transfer of technology for the manufacture and marketing of the Ringtread product. At its height, there was a network of 15 authorised RTS dealers in Brazil. However, the serious economic downturn saw UNISA go bankrupt, threatening Marangonis progress in Brazil, but the operation in that country was kept alive by the determination of a group of former directors of UNISA, headed by Mr. Dary Fernando Figueiredo. The reason that Marangoni was so keen to remain established in Brazil is that the country is the worlds second largest market for retreads, with a monthly consumption of 12,000 tonnes of rubber, which corresponds to some 10 million retreaded truck tyres annually. In 1998, Mr. Dary Fernando Figueiredo founded a new company with its head office in Sao Paulo, which had a small warehouse and just one customer. This eventually became Marangoni do Brasil and, in April 2001, a new facility was opened for the production of precured treads, representing an investment equivalent to nearly 12.6 million Euro at current exchange rates and covering an area of 53,000 square metres. Growth was rapid and, in 2002, the volume of treads produced reached 220,000, for 30 customers. The key to this success lies in the close partnership established between authorised dealers and Marangoni do Brasil; a relationship focused on the distribution of the product and the commercial assistance provided to the dealers in their work in the fleet market. As far as Marangoni is concerned, the story is far from over, as future sales objectives involve a portfolio of more than 50 customers and sales of 550,000 retreads by the year 2005.
Continue ReadingYokohama To Introduce Advan Brand To Europe
Yokohama Rubber is to introduce its Advan tyre brand into Europe for the first time at the forthcoming Frankfurt International Motor Show. The tyres on show will be run-flats and it is believed that Yokohama will market Advan as a high quality, high performance tyre for luxury cars, building up brand awareness by participation in motorsports events. Advan is an established brand in Japan and its only European exposure so far has been through OE fitment on imported vehicles.
Continue ReadingHayes Lemmerz Sells Off Warehouse
Hayes Lemmerz has sold off its Reliable Transportation Components (RTC) centre to Nationwide Wheels, for an undisclosed sum. RTC was acquired by Hayes Lemmerz in 1996 and is a warehouse serving the RV, utility and livestock trailer industries. Hayes Lemmerz described the sale as part of the companys long-term strategy of focusing on core businesses.
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