Research Laboratory Dedicated in Honour of Edouard Michelin
It has been a year since the death of then Michelin CEO Edouard Michelin in a tragic boating accident off the coast of France, and Michelin North America has chosen the anniversary to announce the naming of an endowed research laboratory at the Clemson University International Center for Automotive Research in his honour. Plans for the Edouard Michelin Research Laboratory are well under way with completion expected this autumn. Mr. Michelin strongly believed that education and technology could make the world a better place, said Jim Micali, chairman and president of Michelin North America. His vision remains a guiding force at Michelin today and is evident in the innovations and advancements that Michelin products deliver to the driving public every day. It is only natural that we establish this research laboratory in memory of Mr. Michelin to honour his passion for innovation and his commitment to excellence.
Continue ReadingIntroducing Autocat+ v4.0
MAM Software has launched Autocat+ v4.0, the next major release of its electronic parts cataloguing software for motor factors, accessory retailers and parts distributors. This introduces a number of significant enhancements to the application and further extends its functionality. This latest version of Autocat+ is designed to run at a larger screen resolution of 1024px by 768px. This enables the software to display more information on the screen at any one time and has removed the need for scroll bars on some of the controls. As a result, the main parts grid now displays new fields including fuel type, body type, engine capacity, cylinders, cam, valve and transmission. The introduction of new data columns gives users more fields on which to filter data. Combined with new progressive searching routines, Autocat+ v4 helps users to quickly and easily drill down data to find a match. With more information to search on, parts lookups are more accurate, increasing the likelihood of achieving first-time-fit.
Continue ReadingToyo to Expand North American Tyre Production
Japan’s Toyo Tire & Rubber Co,. Ltd has announced plans to increase production capacity at its North American manufacturing subsidiary, Toyo Tire North America. The company will inject about 6,000 million yen (£25 million) into the US operations with a view to expanding North American sales of the company’s 16 to 24-inch UHP tyres and meet anticipated future OE demand from local car makers. Georgia-based Toyo Tire North America was established three years ago and began the volume production of passenger car and light commercial vehicle tyres in March 2006, employing a new, proprietary, automated Advanced Tire Operation Module (A.T.O.M.) system that facilitates the multi-item small-lot production of products within a much smaller space. The A.T.O.M. will be upgraded as part of the announced capacity expansion so as to help achieve higher product quality while boosting output to approximately 3.3 million units per year by 2009.
Continue ReadingSetting the Wheels in Motion for Business Success
Neill and Ginny Murphy, a team with pioneering ideas on alloy wheel refurbishment in the UK, are franchising their business and looking to recruit 65 franchisees. Neill Murphy said: “The success of the business has been phenomenal and we want to now grow it to become the leading Alloy Wheel Refurbishment Company in the UK. To do that we want to recruit around 65 franchisees who have the desire and enthusiasm to run a thriving business which could make them anything from £50,000 in their first year to £150,000 plus per year net profit. In 1985 Neill and Ginny set up a division within their company of Lap-Tab UK Ltd called The Wheel Specialist, one of the first companies of its kind in this country, after identifying a growing market for alloy wheel refurbishment. Over the past 20 years the business has continued to grow and they count a number of high profile companies and car enthusiasts including TV presenter and newspaper columnist Quentin Willson amongst their customers.
Continue ReadingGoodyear Common Stock Offering Closes
Goodyear has announced the closing of its public offering of 26,136,363 common stock shares, including the fully exercised over-allotment option, at $33.00 per share. Taking into account the exercise of the over-allotment option the offering’s net proceeds, after subtracting underwriting discounts and commissions, totalled approximately US$834 million. According to a company statement Goodyear intends to use the net proceeds from the offering to redeem approximately $175 million in principal amount of its outstanding 8.625 per cent senior notes due in 2011 and approximately $140 million in principal amount of its outstanding 9.00 per cent senior notes due in 2015. The company expects to use the remaining net proceeds for what it calls ‘general corporate purposes’, which may include, among other things, investments to stimulate growth within the company’s core tyre business and the repayment of additional debt. Deutsche Bank Securities, Citi and Goldman, Sachs & Co. served as the offering’s joint book-running managers.
Continue ReadingSibur-Russian Tyres Looks for PCR Production Partner
Be in no doubt - Russian manufacturer Sibur-Russian Tyres has set its sights on the global market. And with annual sales of around $800 million and debts of only $100 million, the company has a good credit rating and is willing to go to great lengths in order to achieve this end. The plan, which is already underway, is to enact a radical restructuring programme that will see Sibur-Russian Tyres focus on high value business (like its currently strong truck tyre operation), and offer itself up to premium international manufacturers as a minority shareholder in a new Greenfield passenger car tyre production joint venture. In an interview with Tyres & Accessories during Brityrex International ‘07, Sibur-Russian Tyres business development director Igor Karavaev explained just how his company planned to achieve this; and what lessons they have learnt from certain other Russian tyre businesses.
Continue ReadingBorrowed Safety
Tyres & Accessories has previously reported on the problem of unsafe used tyres offered for sale in a number of African countries and the resultant risk to life and limb, and therefore we were interested to learn of one company’s plans to offer an alternative to these hazardous items. Dunlop Nigeria and Oceanic Bank International have launched a collaborative venture which they hope will make it easier for motorists to obtain new tyres rather than relying on their used counterparts. The collaborative effort, to be known as the Dunlop Tyre Acquisition Scheme (D-TAC) was recently launched in Nigeria and Lagos, and provides a means by which customers can purchase Dunlop tyres at a discounted rate using the bank’s credit facilities, a means of purchase that has yet to gain wide acceptance in these countries. Under the terms of the financing deal arranged by D-TAC motorists will pay just a fraction of the cost of their new Dunlop tyres up front, bringing safe tyres within the reach of many who could otherwise not afford them.
Continue ReadingKumho Breaks Ground at New China Site
The groundbreaking ceremony for Kumho Tires’ fourth factory in China – and the first not to be engaged in the manufacture of passenger car tyres - was held in Nanjing on May 16 in the presence of more than three hundred company executives and distinguished guests. The company will invest around £50 million in the construction of this latest facility, which when completed in the second half of 2008 will specialise in the production of truck and bus radials. Annual production is planned at 300,000 units. At the ceremony, Kumho chief executive Park SamKu stated “I am very glad to build this bus and truck tyre factory at Nanjing, an important place for us to further our growth in the Chinese market.” He added that Kumho intends to place a greater emphasis on dealings between the company’s Korean headquarters and its operations in China. Furthermore, Kumho Tires is planning, in the company’s own words, to “aggressively pursue the Chinese tyre market through an export markets diversification strategy.”
Continue ReadingBemenet plc Introduces Tubeless Michelin Tyre to Ethiopia
The authorized dealer for Michelin Tyres for Ethiopia, Bemenet plc, has finished preparations to import tubeless truck tyres for the first time. The Company displayed sample tyres at the fourth International Automotive Fair recently. Mr. Kishore Namburi, sales manager of Michelin to Ethiopia has been giving explanations about advantages truck owners can obtain using the tubeless tyre: “There is a refusal to accept new technology by Ethiopian customers. In Kenya, almost 80 per cent of the trucks use the tubeless tyre. Cost per kilometre is cheaper than tube tyres and consumes from 6-8 per cent less fuel, because it has the ability to travel longer. The tubeless tyre has a low profile, which defines the relation between the tyres section width and cross section height and expressed in percentage, the lowest is the preferable profile.” “It is easy to fit and remove,” said Woizero Hirut Alamerew, managing director of Bemenet plc. It takes only two minutes to fit and remove the tyre during travel, and if some thing punctures the tyre, it does not need a professional. The driver can fix it with a glue like product Michelin Tyres provided, added Hirut.
Continue ReadingLeading Drift Drivers Choose Nexen
Nexen tyres have been chosen as the competition tyres for two of Europe’s leading drifters Eric O’Sullivan and Martin French. The first Prodrift meeting of the series took place in Ireland at the end of April and Eric O’Sullivan achieved first position. After the race, Eric said: “The Nexen 3000 definitely aided the car’s performance and played an important role in the win. The grip from the tyres was so good that on the final lap the speed recorded as I entered the first corner was 86mph.”
Continue ReadingGoodyear Set to Spend $125 Million at Plant
(Akron/Tire Review) News reports out of Alabama say that Goodyear plans to pour $125 million into upgrades and new equipment at its nearly 80-year-old Gadsden, Alabama, tyre plant. Reportedly the investment will come over three years. Plant manager Jim Davis told the Gadsden Times that, “The capital that were investing here will bring process capability and production capability that just do not reside here at this times. The investments in our plant will definitely help improve our plants viability and competitiveness. Goodyear is also getting help from the local government, said reports, with the Gadsden City Council approving $125 million in tax abatements. The Gadsden plant was one of the Goodyear plants that were given “protected status” in the recently signed master contract with the United Steelworkers, meaning it will likely remain operational through 2010.
Continue Reading‘Wind of Change’ Blowing at Amtel
Deutsche Bank analysts have upgraded their rating for Amtel-Vredestein from Hold to Buy, suggesting a 12-month target price of $7.97. “We forecast the pre-tax profits (EBITDA) margin to improve from 12 per cent at present to 15 per cent in 2009 on better retail margins and the cost benefits of producing premium tyres domestically,” the analysts reported. Deutsche Bank predicts company revenues will grow at a compound annual growth (CAGR) rate of 8 per cent to $1.6 billion in the next eight years. By 2015 EBITDA is predicted to grow to as much as $241 million on the back of increasing sales of Vredestein tyres in Russia and expanding retail operations. “The stock, in our view, has been severely oversold since its 2005 IPO, as the company did not achieve the announced goals. We believe that Alfa Group, which accumulated a blocking stake in Amtel at the end of 2006 and which is well-known for its ability to turn troubled companies around, will help Amtel realize maximum value from its strategy and improve financial situation,” the analysts conclude.
Continue ReadingMacgowan to Step Down as SMMT Chief at End of 2007
SMMT chief executive Christopher Macgowan will leave the Society at the end of the year. His decision to step down on 31 December was announced at an SMMT board of directors meeting. “It will be business as usual for the next seven months and I intend to leave at the top of my game,” commented Macgowan. “ “It has been a privilege working for the industry in this crucial role and I have enjoyed every moment of my nine years with the Society. However, the fact is I have reached a point in my life where I want to do a number of different things, not just one full-on job. Being chief executive of the SMMT is arguably the best job in the industry, but it is also all-consuming. So come 1 January 2008, I am going plural.” SMMT president Graham Smith added: “Christopher is widely known and respected throughout the industry. On behalf of the SMMT I would like to thank him for his significant contribution, not only to the industry, but also to the effectiveness and strength of the Society. We will miss him and he will not be an easy act to follow.”
Continue ReadingMaxxis Aims for Growth through Retail Network
Speaking exclusively to Tyres & Accessories, Maxxis International (UK) Ltd managing director, Derek McMartin has given more details of plans to grow its PCR business in the UK by setting up a series of retail ‘Centres of Excellence’ to actively promote the brand to the tyre buying public. The centres are being developed with recent TAFF wholesale award winners Group Tyre (UK) Ltd. Derek McMartin describes the Maxxis Centres of Excellence programme as a key element of UK growth strategy. While the Maxxis brand is already well-known within the industry and particularly strong in sectors like motorcycle and speciality, the move to develop a retail network is seen as the company’s pathway towards increased passenger car/4x4 market penetration.
Continue ReadingTreadsetters and UK Tyre Group Partner in Durun Joint Venture
Telford-based wholesaler, Treadsetters, has partnered with UK Tyre Group to import and distribute Durun brand passenger car and UHP tyres. Following negotiations with Durun’s Chinese manufacturer (Shandong Yongtai Chemical Group) at the end of 2006, Treadsetters began importing the tyres at the beginning of 2007. Then, during Brityrex week at the beginning of May, the two parties announced that they are going to pool resources by effectively selecting Durun as a UK Tyre Group exclusive house brand. Treadsetters will continue to hold the exclusive rights to distribute Durun tyres in the UK, the Republic of Ireland and South Africa.
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