McConechys Acquire 30 Hi-Q Stores
Nokian Tyres and Matador to Start Contract Manufacturing
RMA Leaves TIC
Goodyear Announces Staff Reductions
Tyreserve Wins National Tyre Deal with Europcar
Michelin Ranked Top in JD Power Study
Goodyear Reports Decrease in European Sales
Michelin PAX System on New Rolls Royce
Nokian Tyres and Amtel to Sign Joint Venture Agreement

McConechys Acquire 30 Hi-Q Stores

Goodyear have announced that its Hi-Q network has been expanded to over 60 stores in Scotland thanks to a major agreement between Hi-Q and the independent dealer network, McConechy's Tyre Service Limited. The deal involves McConechy's taking over the ownership of over 30 tyre stores in Scotland, that previously operated as either Hi-Q Tyreservices or MotorWay Tyres.

The stores will join the existing depots in the McConechy's network under the McConechy's Hi-Q umbrella. McConechy's remains an independent business, with the expanded network of stores operating under a long term agreement to form part of the national Hi-Q network .

John Westwood, Director of Business Development at Goodyear Dunlop commented: "Hi-Q is one of the largest tyre service networks in the UK. McConechy's is Scotland's strongest independent tyre specialists and this new partnership is a clear indication of our forward strategy of combining the benefits of National Hi-Q Standards with local expertise. The combination of the new McConechy's Hi-Q stores, coupled with the excellence of our existing Hi-Q dealer partners gives us the biggest tyre service network in Scotland".

Nokian Tyres and Matador to Start Contract Manufacturing

Nokian Tyres plc and Matador AS have signed a contract manufacturing agreement under which Matador will manufacture Nokian branded S, T and H rated car tyres at its factory in Slovakia. The tyres will be sold to the East European markets and will be part of the total Nokian product range. The first tyres will be sold during the first quarter 2003.

It is planned that Matador will manufacture 100.000 Nokian branded tyres in 2003 and increase the volume to 300.000 tyres during 2004- 2005. The agreement is valid until the end of the year 2005 and after that on a one-year basis.

RMA Leaves TIC

The Retread Manufacturers Association has announced it is to leave the Tyre Industry Council in order to focus its resources on retreading and on its involvement in Europe with Bipaver.

Goodyear Announces Staff Reductions

Goodyear Tire & Rubber Company has announced restructuring actions in its corporate headquarters and within North America that will result in the elimination of more than 700 employee positions. The actions are being taken as part of an ongoing program to improve the company's fixed-cost structure.

Of the total, nearly 500 jobs will be eliminated through layoff, including 350 in Akron. The remaining layoffs will be distributed across the company's other North American locations. Approximately 200 of the job eliminations have been achieved through attrition since the beginning of the fourth quarter of 2002.

Tyreserve Wins National Tyre Deal with Europcar

Tyreserve has won a national solus deal to supply tyres to Europcar, one of the leading car rental companies in the UK and internationally. The arrangement will see Tyreserve replace all damaged tyres on Europcar's rental fleet of 18,000 vehicles using mobile units, many through the new AA tyre Fitting mobile fleet that is operated by Tyreserve from its Coventry headquarters.

Michelin Ranked Top in JD Power Study

Michelin has been ranked the highest in original equipment tyre satisfaction according to the 2002 UK Original Equipment Tyre Customer Satisfaction Index Study carried out by JD Power and Associates. Michelin owners give their OE tyres the highest ratings on all five factors of the satisfaction index (tyre quality/durability;appearance;traction;ride/handling; and effect on fuel economy), establishing a significant lead for Michelin over the rest of the industry.

Michelin has ranked highest in the study for five consecutive years. Continental was ranked second and Goodyear third in the study. Most of the attributes measured in the satisfaction index contribute in some part to overall owner perception of tyre safety. When asked to rate their tyres based on impressions of the safety provided, Michelin owners give their tyres the highest ratings, followed by owners of Goodyear and Dunlop tyres respectively.

The study indicated that quality and durability are the most important aspects of satisfaction with OE tyres, followed by appearance, traction and ride/handling performance. The survey also found that it is critical for tyre manufacturers to understand how their customers perceive these characteristics as OE tyre satisfaction has a direct influence on tyre brand repurchase and customer intent to recommend the brand to others.

The study, now in its fifth year, surveyed 2,504 UK motorists on their experiences and opinions of their OE tyres after two and a half years of ownership, measuring owner perceptions regarding tyre quality, performance, brand image and service behaviours. Bridgestone, Dunlop, Firestone, Kumho and Pirelli brands are also included in the study.

Goodyear Reports Decrease in European Sales

In its regular Investors Report Goodyear has reported that in November 2002 tyre sales in Europe decreased 4 percent for consumer tyres and were flat for commercial tyres compared with prior year levels. Goodyear consumer and commercial tyre shipments declined more than the industry.

The decline in replacement tyres was put down to the exit of non-profitable brands in the United Kingdom and weaker performance in Germany after a very strong October. On a more positive front, Goodyear said it had gained more than one point of market share in the high-margin winter tyre segment.

Michelin PAX System on New Rolls Royce

Michelin's PAX System wheel and tyre design has been specified for the new Rolls-Royce Phantom. The decision by Rolls-Royce to specify the PAX System exclusively for all Phantom models in all territories follows limited PAX System fitment by Renault and Audi to some models - Scenic and A8 respectively.

Nokian Tyres and Amtel to Sign Joint Venture Agreement

Nokian Tyres plc and Amtel Holdings B.V. have signed a joint venture agreement, the purpose of which is to organise and carry out the development, production and sales within the CIS of passenger car and light truck tyres, which are branded and sold under the Nordman, and Amtel trademarks. The parties will form a 50/50 joint venture company to be called OOO Amtel-Nokian Tyres registered in the Russian Federation.

The products will be manufactured at Amtel factories in Kirov and Voronesh in the Russian Federation, and in Rosava, Ukraine. Targeted amount of production for the joint venture in 2003 is 900.000 tyres and 3,600.000 tyres in 2004. Amtel will be the leading partner in manufacturing the Nordman and Amtel branded tyres for the joint venture. The upgrade and increase of capacity requires investments of about 25 million USD to Voronesh and Kirov factories in 2003 and 2004. The parties will arrange the financing jointly. Nokian Tyres' share will be approximately 10 million USD.

Nokian Tyres and Amtel also intend to develop the partnership further to increase production capacity and supply to the joint sales company by investing in a greenfield factory in Russia. The new production facility will produce high quality Nokian branded premium tyres. Nokian Tyres will be the leading party in the greenfield factory project. The first stage production target is 1,2 million tyres per million tyres per year within three years after final acceptance of the project.