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15091

Auto Service – Not All The Hopes Realised

In the 80s and 90s a lot of tyre dealers invested in auto service knowing that there were limits: without employing a master mechanic for car repairs, certain works are not allowed to be carried out. But many dealers cared for the qualifications of their employees, sent them on courses in order to get the permission to do the typical works that car service stations normally do. Some tyre dealers were on their way to making a success of auto servicing. But there are also examples of diversification going in the wrong direction. Some fields were portrayed to tyre dealers as being the business of the future but which failed later: Steering wheels? The airbag killed this business. Batteries? Today most are maintenance-free. Exhausts? Better quality steel has led to better rust-proofing. Numbers of car services will decrease over the next few years, meaning that tyre dealers, independent car repair stations and licensed car dealers will have to fight much harder for the customer than they do today. Generalists, who attempt to do all the work around the car, will have to invest a lot of money in their outlets. Specialists – for example in tyres – can recommend themselves to the customers with their special services and products whereas car service stations might be overstretched regarding an increasingly complicated tyre business because of the progress in electronics, such as tyre pressure warning system. Easy solutions are not available. But it is dangerous to follow each trend of diversification, to invest a lot of money merely in order to realise one day that you have built up a new service in a specific auto part, only for the demand to wane and another part comes into focus. However, in twenty years’ time cars will still need tyres, and who will replace the defective tyres if not a tyre dealer?

15092

Run-flats Primed To Satisfy J.D. Power Consumers

More Goodyear run-flat tyres are on the road than any other. A study by J.D. Power and Associates says that nearly seven out of eight consumers place run-flat tyres at the top of their list of desired features. The report shows that consumers want safety-related features more than sophisticated entertainment systems or other convenience features in their new vehicles.

15093

Tyrexpo Europe 2001 Preview

It is exhibition time once again in the UK, with Tyrexpo Europe 2001 being held in the Grand Hall at Olympia from March 14th to 16th. In terms of space, this is the largest-ever show in the event’s 23-year history. The exhibitor list underlines the show’s growing internationalisation over recent years, with companies coming from (naturally, given the name of the show) western and eastern Europe, the USA and Canada and the Far East. Manufacturing tyres has become an increasingly global business, and so has wholesaling, with companies searching the globe for new sources of products and also for customers. Wholesalers are well represented at Tyrexpo. An industry not enjoying good times at the moment is that of retreading, especially for passenger car tyres. It is no surprise, therefore, that the number of retreaders taking space at the show is below that of previous events. However, the industry is not totally unrepresented, with machinery manufacturers and suppliers of consumables taking space. Two areas which are becoming more prominent are those of tyre recycling and internet trading. Legal moves such as the banning of tyres for landfill and the End of Life Vehicle Directive are concentrating industry minds on recycling, and there are tyre collectors and disposers among the exhibitors. Few doubt that the internet will have a growing effect on the tyre – and every other – business, and Tyrexpo Europe provides the opportunity for some of the companies offering internet trading to show what they can offer. Our preview gives a flavour of the variety of exhibitors by giving details of some of what is on show. TYRES & ACCESSORIES and our sister magazine NEUE REIFENZEITUNG, are sharing a stand and we look forward to seeing friends old and new.

15094

Improved Sales And Profit For Nokian

Nokian has released interim financial figures for the first nine months of this year. These show an increase in net sales of 7.4 per cent to 277.7 m Euro and an operating profit of 25.3 m Euro (11.9 m Euro for the same period last year). Net profit reached 9.1 m Euro (2.7 m in 2000). Nokian’s target for the year is to achieve a sales growth of around 10 per cent and improve on last year’s profitability.

15095

Tyre Offer Pulls In The Crowds For Kwik-Fit

Kwik-Fit GB has resumed its press advertising campaign, offering four tyres from 60 Pounds (two for 35 Pounds), excluding valve and balance. For certain H-rated sizes, four tyres are available for 100 Pounds. Over the Easter week, a record number of customers visited the group’s centres and 21 centres recorded their best-ever week for sales.

15096

Prost Picks Michelin For F1

The Prost Formula 1 racing team has now signed a three-year deal with Michelin to supply tyres, beginning with the 2001 season. Prost has not yet chosen its second driver to team up with Jean Alesi.

15097

Car Fleet Business

The car fleet servicing market in the UK is a very tough business. The size of this segment become evident looking at new car registrations in the UK last year, 57% of more than two millions were fleet vehicles. In absolute figures the German market surpasses the British, but the proportion of fleet cars is less. The potential is enormous: Industry sources say that the average fleet car needs 1.8 tyres replaced a year, which gives a total market of 9 million tyres in Germany. And it should be remembered that fleet cars are normally newer than the average, travel more miles per year and fitment rates of winter tyres are higher than for private cars. A fleet service provider knows how much he has to pay for tyres per mile. It should be routine to ask whether the fleet has the right cars and the most suitable tyres, but could another model of car be more appropriate to the needs of the fleet because of how it is used? Car fleets need a mobile fitting network wherever the cars are driving. The tyre dealer carrying out the service on behalf of a leasing company must know the state of the tyres, has to ensure that they are at the correct pressure, has to identify the reasons for unbalanced abrasion patterns and has to fit the car with winter tyres before the first snowflakes fall. Whoever wants to participate in the growing market segment of car fleets has to be fully professional – and he has to invest money. For example, an integral component of car leasing or full service fleet management systems is the use of the Internet. All those involved in the package use the Internet as a communication platform and they want to reduce the costs for the fleet parc. Customers are very interested in quality; the package they anticipate is more than “only” good tyres. Car fleet servicing might be an opportunity, but not a cheap one.

15098

Insurers Aim To Collect From Firestone/Ford

Allstate and State Farm, two of America’s largest insurers are aiming to recover the costs of claims paid out to victims of traffic accidents involving Ford Explorers and Firestone tyres. An insurance industry spokesman said” Firestone and Ford have attempted to avoid the courts and settled claims quietly with the plaintiffs, I would expect the same strategy with the insurance companies.”

15099

ECE-Regulations Still Under Discussion

In Germany, there exists a handful of proving laboratories examining tyres according to the ECE regulations, and most clients are retreaders. In February one of these laboratories, the Prüflabor Nord (PN, Bad Bramstedt), held an “Open Day”. “Day of Open Doors”. Proving authority for the retreading facilities in Germany is the Kraftfahrt-Bundesamt (KBA), which, up till now has evaluated 35 truck tyre and eight car tyre retreading facilities in conformity with ECE-R109 and ECE-R108. The proving process is not obligatory but on a voluntary basis. It might be another two years before the regulations become mandatory. The discussion of retreading experts with responsible persons from KBA and PN has shown that a lot of questions, which have been answered up till now through the actual ECE wording show it to be inadequate or bad. The planned ECE regulations need modifications very urgently, otherwise the whole retreading business is threatened. The rules are so vague that they constitute an open invitation to the “black sheep” of the retreading business to bring the whole industry into disrepute.

15100

RoadSnoop Launched By Nokian

Nokian Tyres is preparing to launch RoadSnoop, its first generation tyre pressure and temperature monitor. The sensor is battery powered and is mounted in the tyre at tyre changing and operates instantaneously upon turning the key in the ignition. It sends signals to a dashboard mounted monitor. Deliveries are expected at the beginning of March 2002.

15101

Loss-Making Goodyear

The group’s turnover fell from US$ 3.66 bn (1st quarter 2000) to US$ 3.41 bn for Q1 this year. Last year the group achieved earnings before taxes of US$ 80.3 million; this has turned into a loss of US$ 48.2 million. Earnings after tax fell to a loss of US$ 46.7 million. Despite these poor figures, analysts – especially from Deutsche Bank – have confidence in Goodyear, which is based on the hope that the effect of the disastrous Firestone recall will create a big advantage for first brands, and is also based on the assumption that price increases will stick. Last but not least, Goodyear has said that its on-going restructuring programme will lead to further significant cost reductions.

15102

Cooperation Between Cooper-Avon And Kenda

An agreement has been reached whereby Taiwanese tyre manufacturer Kenda will make passenger car radials for Cooper-Avon. Cooper says that a number of brand names will be manufactured, including Cooper and Avon, initially T-rated tyres and, again initially, for sale in Europe. The agreement frees up valuable capacity for high performance tyre production at Cooper-Avon’s Melksham plant, says Managing Director Ron Shield.

15103

Positive Signs For Goodyear?

In discussions with analysts from the DB Group, Goodyear management expressed optimism that it might achieve a larger slice of OE business from the Detroit car manufacturers, at the expense of Firestone. Goodyear said it had received an order from Ford for 1.8 million tyres and is hoping for another big order from General Motors. Spokesmen from Goodyear said that they would resist Chrysler’s request for price reductions in order to overcome the difficult situation at Chrysler. At the end of January, many contracts between Firestone and its dealers expire and Goodyear is confident of winning over many of these dealers. On the other hand, Goodyear admits that the medium and heavy truck business will remain difficult during 2001. All in all, the analysts see more positives than negative risks at the moment, but they did not recommend Goodyear shares.

15104

“Business As Usual” As Trelleborg Acquires All Of TWS

The Trelleborg group has purchased Pirelli’s 40% share of the agricultural joint venture company Trelleborg Wheel Systems. Recently-appointed President of TWS, Maurizio Vischi, said that the customer would not notice any difference in products or service and that TWS would continue to have a close relationship with Pirelli. Later on this year TWS will manufacture Trelleborg-branded radial tyres at its Tivoli factory.

15105

Subsidiary Company To Develop Nokian Intelligent Tyre Technology

Nokian has established a subsidiary company for commercialising and internationalising its recently-created intelligent tyre technology (ITT). The company is called RoadSnoop Ltd. and it will be responsible for the product development, production and marketing of ITT. Called the RoadSnoop Safety System, it consists of lightweight sensors installed in the tyres which monitor tyre pressures and temperatures. Should the pressure drop, the system sends an alert to the driver’s mobile phone, in-car computer, or even to a separate display at a garage forecourt.

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