Mickey Thompson Drag Tyres Now Available in UK
Goodyear to Purchase Remaining Share in Sweden's Dackia Retail Chain
NTDA Chairman Backs Green Tyre Dealer Scheme
Continental Release Year-End 2003 Figures
Michelin Add Pressure Checks to Moto Services
Avon and Evoactive Joins Forces for 2004 Trackday Season
Kleber Launch Roadside Assistance Service
Goodyear Concludes Overseas Accounting Investigation
Continental Crowned UK Tyre Brand of the Year
Race Off to Monte Carlo with Dunlop

Mickey Thompson Drag Tyres Now Available in UK

In the sport of drag racing Mickey Thompson Drag tyres have become a force to be reckoned with. Now the full range of Mickey Thompson Drag tyres will be available in the UK for the first time through Avon Tyres Racing and three specialist distributors.

The range includes ET Drag, a proven winner with a maximum traction compound and engineered for consistent performance, the ET Front with an ultra-lightweight design to reduce rolling resistance, the ET Street and the record breaking Motorcycle Series.

The full range of Mickey Thompson drag tyres will be available through LA Racing Parts, Webster race Engineering and Andy Robinson Race cars. In addition to availability of product, Avon Tyres racing will also be offering a contingency programme to race participants.

Goodyear to Purchase Remaining Share in Sweden's Dackia Retail Chain

Goodyear Dunlop Tires Europe has strengthened its position in Scandinavia with an agreement to buy the outstanding shares of one of Sweden's major retail tyre groups, Dackia. The company expects to complete the purchase of the chain by the end of June.

Goodyear Dunlop currently owns 50 percent of the shares with the remaining being primarily owned by Procuritas and Dackia management. Financial terms of the deal were not disclosed. Dackia has more than 60 company owned stores, as well as 31 contract partners throughout Sweden, and annual sales revenue equivalent to approximately £36 million.

NTDA Chairman Backs Green Tyre Dealer Scheme

The Green Tyre Dealer Scheme launched recently by the Retread Manufacturers Association (RMA) to promote the safety, performance and environmental benefits of retreaded tyres, has received a significant boost with the news that the network is being endorsed by the Chairman of the National Tyre Distributors Association (NTDA).

Martin Rowlands, who is a Director of the Kinross based retailer Tyrefair Ltd, is a long-time supporter of the retreading industry and was one of the first dealers to join the Green Tyre Dealer Scheme. He is also the current Chairman of the National Tyre Distributors Association, the national body representing independent tyre dealers within the UK. Says Rowlands: "I wholeheartedly support the active promotion of retreaded tyres and applaud the RMA for their initiative in developing the Green Tyre Dealer Scheme. "Retreads are good products", he continued. "They are environmentally friendly, their appearance is good, they have the same speed rating as new tyres and they are excellent value for money".

Sheila Ikin, Director of the Retread Manufacturers Association commented: "WE are delighted that Martin Rowlands has been so vociferous in his support for the Green Tyre Dealer Scheme. We hope that his words will provide encouragement to other retailers to join the 'Green Revolution' and become members of our growing network of Green Dealers".

Continental Release Year-End 2003 Figures

Continental announced their annual figures for 2003 at a press conference held recently in Hanover, Germany. Speaking at the conference, Manfred Wennemer, Chairman of the Executive Board of Continental, said: "In spite of the current instability within the automotive and automotive supplier industry, Continental has emerged triumphantly into 2004. Not only have we dramatically increased our sales, but we have also managed once again, to register a new record level of earnings, far surpassing those set in 2002."

Continental Automotive Systems (CAS) increased its sales by 7.2% in 2003 (from EUR 4.568 billion to EUR 4.626 billion, exchange rates considered). The division also improved upon its operating results with an 18.5% rise, which took the 2002 figure of EUR 311.9 million soaring to EUR 369.5 million.

Meanwhile, in the passenger and light truck tyre sector, close to 100 million passenger tyres were sold - an 8.4% improvement on the 91 million in 2002. In Europe, extremely high levels of growth - that brought the overall EBITA hurtling to an increase of 87.3% (from EUR 184.6 million to EUR 345.8 million) - more than offset losses in the NAFTA region. Here, due to the capacity at one of the plants being reduced during 2003 (administrative staffing levels cut and outsourcing of tyre logistics operations implemented), sales slowed. The consolidation of subsidiaries in Mexico and South Africa saw sales in these areas rise by 3.4%.

Sales in the Commercial Vehicle Tyres division fell short of the previous year's figure of EUR 1.311 billion, to EUR 1.262 billion. Before any changes in the scope of consolidation - relating to the subsidiaries in Mexico, South Africa and Continental's Sime Tyre - or exchange rates effects had been taken into account, sales were up 2.8%. The consolidation of Continental Sime Tyre in Malaysia - assigned to the division in October - had a positive influence on the figures. Overall, the Commercial Vehicle Tyres division recorded EBITA of EUR 82.4 million: a total that was down on the 2002 figure of EUR 92.9 million. However, prior to the consolidation changes (as stated above), goodwill impairment and land sale in 2003, operating earnings were up by EUR 13 million on the previous year.

Continental AG anticipates that total passenger car production in 2004 will remain at the level of the previous year. However, the Executive Board expects that this gross figure will comprise a different regional ratio: with a slight decline in Western Europe and a strong increase in Eastern Europe and Asia.

Manfred Wennemer, said: "Price pressure within the tyre market will hot up in the coming year - especially in the U.S.A. with the continuing rebate programmes of its automobile manufacturers. In light of this fact, Continental is in the process of analysing major restructuring measures that may be required in the North American passenger sector." Wennemer added: "From what we have seen of the year so far, we have good reason to be positive about what 2004 holds for our business. We are at least, predicting a further increase in our consolidated sales and operating result, before restructuring costs."

Michelin Add Pressure Checks to Moto Services

A unique road safety initiative to help drivers understand the importance of their tyre pressures being accurate has been launched by Michelin in conjunction with Britain's largest motorway services operator Moto. Michelin technical staff will offer motorists free tyre pressure checks at Moto's motorways services throughout the spring and summer in a drive to emphasise the importance of keeping their tyres inflated to the recommended tyre pressures.

Ian Hughes, PR Manager for Michelin UK says: "We want motorists to be more aware of the safety factor of tyre pressures in relation to the important handling, cornering and braking. It is vital to keep your tyres in good condition and at the correct pressures. Driver's do not take the time to check their pressures so we are offering to do the job for free in this programme to highlight the importance."

Avon and Evoactive Joins Forces for 2004 Trackday Season

For the second successive season Cooper-Avon Tyres is to provide ultra-high performance road, trackday and racing tyres, plus technical support, for evo magazine's evocative trackday season. evocative, in association with Avon tyres will be hosting at least 12 trackday sessions around the UK during the 2004 season at the Bedford Autodrome, Oulton Park, Brands hatch, Cadwell Park and Snetterton Circuits.

Avon tyres will be fitted to the Caterham R400 and Radical SR3 in which evo's professional drivers will be giving "hot" passenger laps. Additionally, at the Oulton Park event, it's expected that the "hot lap" fleet will also include the palmer Jaguar JP1, fitted as standard with Avon racing tyres.

Kleber Launch Roadside Assistance Service

Kleber has launched a new roadside assistance service for buyers of any car tyre from its range. Kleber Assistance is available free to drivers who purchase their Kleber tyres, initially only through the Stapletons Kleber Key Dealer Network, but through other dealers later in 2004.

It offers three years free cover against tyre-related breakdowns and includes vandalism, punctures or any other type of accidental damage. The service operates 24 hours a day, seven days a week and assistance is provided within one hour, anywhere in Europe. If the tyre cannot be repaired at the roadside and the spare wheel is unusable, the vehicle will be taken free of charge to the nearest garage where the tyre can be replaced at the driver's expense. In the event of no garage being open the vehicle and occupants will be taken to a place of safety such as a hotel or the driver's home if nearer.

Goodyear Concludes Overseas Accounting Investigation

Goodyear has announced that the investigation into its overseas accounting has been concluded. While the results are currently being reviewed, it is expected that the reduction to net income between 1997 and 2003 identified through the investigation will total approximately US $10 million, with most of it impacting the company's European Union business. Upon completion of this review, Goodyear plans to file its 2003 Annual Report on Form 10-K and its amended 2002 10-K by mid-May.

Continental Crowned UK Tyre Brand of the Year

Continental has clinched the title of UK's Tyre Brand of the Year at the NTDA Annual Dinner on 24 March 2004 in Birmingham. Readers of Tyre News were invited to vote for their favourite tyre brand on the criteria of which brand makes their life easier, in terms of availability, quality and profitability.

Commenting on the factors contributing to the Company's success, Brian Smith, Managing Director of the Continental Tyre Group, pointed towards Continental's position as the fastest developing premium tyre brand in the UK, a fact reflected by the company's sales growth which currently stands at almost 15% per year. In addition to its sales performance, Continental is currently Europe's top OE passenger brand and is fitted on over 25% of all new cars.

Race Off to Monte Carlo with Dunlop

Dunlop dealers are offering customers a once-in-a-lifetime opportunity to rub shoulders with the rich and famous and live the life of a top F1 racing driver. They're launching a national search to find the next Jenson Button or Damon Hill and seven finalists will attend the Dunlop Race Academy at one of the UK's most famous racing schools, the Gold Track Driving Club. The overall winner will earn the chance to drive the customised Ginetta against experienced rivals in the Dunlop Driver's Cup at Brands Hatch in October. In addition, the winner stands to win a £7000 holiday to Monte Carlo. Further information is on the Dunlop website at www.driveradviser.co.uk