Bridgestone Inaugurate New European Testing Centre
Michelin Proposes F1 Changes
Brityrex Builds Support for 2005 Show
Bridgestone Supplies Runflat Tyres for Ferrari 612 Scaglietti
RMA Seeks Retailers for UK's Green Tyre Dealer Scheme
CVC and Permira Announce Acquisition of the AA
Goodyear Plans $50-million Expansion in Colombia
Bridgestone and Marangoni in Retread Co-operation
Goodyear Completes Purchase of Sava and Dackia Retail Chain
Michelin Ranks Highest in JD Power Survey
Bridgestone UK goes 'The Extra Mile' for Sport Relief
Online Registration for Aftermarket Show Available
Goodyear Reports Results for 2004's First Quarter

Bridgestone Inaugurate New European Testing Centre

Bridgestone Europe inaugurated its brand-new European Proving Ground (EUPG) at Aprilia, near Rome, Italy, on 11th June 2004. Covering 144 hectares and dominated by a 4 km oval circuit, the € 40 million facility has been designed for the testing of tyres for passenger cars, commercial vans, trucks, buses, agricultural vehicles and motorcycles.

The official opening on 11th June - in the presence of Bridgestone Corporation Chairman and CEO, Mr. Shigeo Watanabe, and Bridgestone Europe CEO, Mr. Minekazu Fujimura - unveiled Phase 1 of the program. This features the main 4 km oval track, with its high-speed banked curves, a 9-hectare "black lake" facility, a 4-km dry handling circuit, 11 x 400 m long noise and comfort tracks, and a noise pass-by evaluation site Phase 2 will be completed by spring 2006, adding straight and cornering hydroplaning test beds, five wet skid-pad circles, a 1.8 km wet handling track, and full testing facilities for truck, bus and agricultural tyres.

From 2005, the proving ground will also be home to Bridgestone Europe's new Training and Communication Centre. This ultimate Proving Ground has been designed for testing new-generation high-performance, touring, and general use tyres of the future, and will complement Bridgestone's existing European Technical Centre (TCE) at Castel Romano, 30 kilometres to the north. TCE will continue its leading role in materials research, tyre design, the manufacture of prototypes, and all forms of indoor testing, but outdoor testing will be progressively moved to the new facility.By 2006, the transfer will be completed and EUPG will be the official testing centre for Bridgestone Europe.

Michelin Proposes F1 Changes

Following the announcement by the FIA that the Formula One Technical Working Group has been asked to propose measures to reduce the performance of F1 cars, Michelin has offered a number of proposals, as stated on May 7, 2004. Michelin feels that its proposals are very much in line with the FIA's main objectives for the future. These objectives are to control performances by reducing cornering speeds for safety reasons, to offer a very substantial reduction in costs through the virtual elimination of tyre testing, and to improve the racing spectacle without introducing artificial rules.

After consultation with its partner teams, Michelin produced various proposals, which are listed below.The company feels that these proposals could be introduced from as early as 2005. The proposals made by Michelin are:

• the use of one set of tyres for qualifying and the entire race
• between four sets and two sets of dry tyres to be available for each driver per weekend, available in one or two types
• Supply of same specification prime and same specification option for all teams
• six sets per team for each test day (with a recommendation for a drastic reduction in testing during the F1 season, to be decided by either the Team Principals or the FIA)

We believe that the FIA's objectives can be met by implementing these proposals," said Michelin Competition Director, Pierre Dupasquier."Firstly, to be able to provide tyres that last much longer, we will be obliged to use much harder compounds, which in turn will be less "grippy", thus reducing speeds.Secondly, to seriously reduce costs, testing must be limited. This can be complemented by providing fewer tyres, so the amount of testing would be further reduced. I'm sure there can be a saving in Teams' operational costs of over 50%. And finally, these 'hard' tyres will leave less rubber on the track, making the 'dirty' line a thing of the past and therefore encouraging overtaking, something everybody around F1 wants."

Michelin Group Chairman and CEO, Edouard Michelin added, "Our proposals offer a triple benefit: an increase in safety, a reduction in costs and an improvement to the racing spectacle - particularly by having more overtaking. These proposals therefore both respond positively to the wishes of the FIA and also allow teams the freedom to choose their tyre supplier; a freedom that is at the very heart of the companies involved in Formula One. Michelin is therefore happy to continue to work with its partners and the F1 Technical Working Group in order to find the best way forward."

Brityrex Builds Support for 2005 Show

ECI International, the organizers of Brityrex International 2005, are reporting strong support from major players within the tyre industry for their show, which takes place in Harrogate in the UK between 10-12 May next year. With the UK representing the second largest market in Europe both national and international exhibitors have committed their support for the show.

Brityrex will be reaching out to all sectors of the tyre industry from retailers, wholesalers, independents/equities, fleet mobile operators, car dealerships to end-users via an extensive marketing campaign implemented to bring a target international audience to Brityrex. The show will also feature the 'Tyre Retail Outlet Of The Future' with demonstrations of the latest equipment and technologies available for the "workshop of the future".

Bridgestone Supplies Runflat Tyres for Ferrari 612 Scaglietti

Bridgestone Corporation is supplying Potenza RE050 RFT runflat tyres to Ferrari for the 612 Scaglietti. The 612 Scaglietti is the first model that Ferrari has equipped with Bridgestone runflats, though the automaker has chosen Bridgestone tyres for several previous models, previously fitting Bridgestone Potenza RE050 SCUDERIA tyres as standard equipment on the Enzo Ferrari.

The newly-launched Ferrari 612 Scaglietti has a 12-cylinder, 540-horsepower engine, with a top speed of 320 kilometers per hour (199 miles per hour). It is available with the Bridgestone runflats as a factory option.

Bridgestone supplies Ferrari with the Potenza RE050 RFT tyres in two sizes for the 612 Scaglietti. These are: 245/45ZR18 (96Y) for the front tyres and 285/40ZR19 (103Y) for the rear tyres.

RMA Seeks Retailers for UK's Green Tyre Dealer Scheme

Following the successful launch of the Green Tyre Dealer Scheme earlier this year, the Retread Manufacturers Association has announced that it is on the look-out for forward looking retailers who wish to join the new network and take advantage of the successful promotional campaign that the Association has launched during the course of the year.

According to RMA Director, Sheila Ikin, there are currently 256 retail outlets who are members of the Scheme. Of these, 185 stock passenger and/or 4x4 retreads and 163 stock retreads for commercial vehicles. Despite the Association's success in gaining such as high level of membership in such a short space of time, the Association says it is now actively looking for new members in order to make sure that both the truck and passenger tyre networks have national coverage.

David Wilson, who is responsible for co-ordinating the scheme comments; "There are a number of regions where we are looking for switched-on retailers to become part of the "Green Revolution" and become members of the Green Tyre Dealer Scheme. These might be retailers already stocking and selling retreads but who have not yet joined the scheme but equally they might be retailers who do not currently stock retreaded tyres but who want to take advantage of the marketing opportunities that the Scheme offers.

For the passenger retread sector, the RMA is looking for retailers in most areas in the South of England. However, there are also opportunities in a number of major conurbations, in particular the West Midlands, Greater Manchester, Liverpool, West Yorkshire and Hull.

There are also a number of opportunities for truck tyre retailers to join the scheme. Again, there are a number of opportunities in the South of England as well as in Greater Manchester, West and South Yorkshire and the East Midlands.

CVC and Permira Announce Acquisition of the AA

CVC Capital Partners ("CVC") and Permira, two of Europe's leading private equity firms have announced the acquisition of the AA from Centrica plc. The £1.75 billion transaction is subject only to regulatory approvals and will be completed using a new company formed for the purpose owned jointly by CVC and Permira and financed by funds managed or advised by the two firms with debt facilities provided by Barclays Capital.

CVC and Permira have strong and extensive track records of growing and developing some of the UK's best known consumer businesses including Kwik-Fit, whom CVC bought from Ford a couple of years ago. There are, however, claimed to be no plans to bring the AA and Kwik-Fit together.

Goodyear Plans $50-million Expansion in Colombia

Goodyear has announced a $50-million expansion at its Cali, Colombia, manufacturing plant to produce radial medium truck tyres. The expansion will include several phases, the first one expected to begin soon and the final one to be completed by 2006.

Bridgestone and Marangoni in Retread Co-operation

Bridgestone Europe NV/SA has announced that it has formed a new subsidiary company, Bridgestone Retread Systems NV/SA, in a joint venture with Marangoni Tread S.p.A as minority partner. The new company, headed by Managing Director Ing. Marcello Gambarini, will have its dedicated headquarters in Brussels, Belgium.

Effective June 1st 2004, Bridgestone Retread Systems will service all of Bridgestone's truck tyre retreading activities in Europe, and will provide a central, single source of supply and support to Bridgestone's Federated Retreader network. The joint venture with Marangoni Tread, including its sister company Ellerbrock, will allow for Bridgestone Retread Systems to benefit from technical expertise and to distribute a selected range of Marangoni products to the Bridgestone Federated Retreader network. The Marangoni products will complement the Bridgestone range and enable the retreader to meet the clients' requirements.

Utilising original Bridgestone materials and following quality control methods imposed by Bridgestone, the Federated Retreaders will produce retread truck tyres under the "Qualitread" brand name. At the same time Bridgestone is launching an extended range of pre-cured treads also under the "Qualitread" brand name.

Goodyear Completes Purchase of Sava and Dackia Retail Chain

Goodyear has completed its previously announced acquisitions of the remainder of the previously announced acquisition of the Sava tyre manufacturing company in Kranj, Slovenia. After exercising its call option to purchase the remaining 20 percent of Sava Tires owned by Slovenia's Sava d.d. for approximately $52 million, Goodyear will transfer it to the company's 75 percent-owned Goodyear Dunlop Tires Europe affiliate.

In 1998, Goodyear acquired its original 60 percent stake in Sava Tires. It bought an additional 20 percent in 2002. This 80 percent had previously been transferred to Goodyear Dunlop Tires Europe.

Meanwhile, Goodyear Dunlop Tires Europe has also completed its previously announced acquisition of the remainder of Dackia, a major tyre retail group in Sweden. The remaining 50 percent of the retailer was purchased from Procuritas and Dackia management for approximately $10 million. Goodyear originally acquired a 50 percent stake in Dackia in 1996.

Michelin Ranks Highest in JD Power Survey

Michelin have come out on top in a J.D. Power Asia Pacific study into customer satisfaction with winter tyres. Based on a survey conducted in Japan, the results released on June 25 place Michelin ahead of the competition. The study was based on responses from 1,130 customers who purchased a new passenger vehicle between January 2001 and June 2003 and own winter tyres.

Of the five tyre brands ranked by the customers, Michelin scored highest with 655 out of a maximum of 1,000 points. The overall industry average is 586. Five satisfaction factors were judged: performance in snowy/icy road conditions, performance in normal road conditions, durability, design and fuel economy. In all categories, Michelin received the highest ratings.

Bridgestone UK goes 'The Extra Mile' for Sport Relief

Bridgestone UK has teamed up with Jordan Grand Prix to 'Go the Extra Mile' for Sport Relief, running a series of competitions in the national media and producing a specially-made red tyre to mark the occasion. In the run-up to the British Grand Prix, Bridgestone UK and Jordan Grand Prix ran a Pit Stop Challenge competition in the Daily Telegraph, on BBC Online, and on the Sport Relief website. Five lucky winners were then given the chance to visit the Formula One team's factory; meet Eddie Jordan and drivers Nick Heidfeld, Giorgio Pantano and Timo Glock; take a guided tour of the Formula One paddock at Silverstone; and then compete in teams to see who could change the tyres on a Formula One car the quickest. All proceeds from entering the competition went to the Sport Relief charity.

The members of the winning team in the Sport Relief challenge were Chas Morgan, Eamon Collins and Will Gray. They completed their three tyre changes smoothly and consistently, with a fastest tyre-change time of just 7.6 seconds. In addition to the challenge, the four Bridgestone equipped Formula One teams: Scuderia Ferrari, Sauber Petronas, Jordan Ford and Wilux Minardi Cosworth each gave their support to the Sport Relief campaign by sporting a single limited edition red Bridgestone Potenza Formula One tyre during pit stop practices ahead of the British Grand Prix. Between them, the teams also donated numerous items of signed F1 team memorabilia to be auctioned in aid of Sport Relief.

Online Registration for Aftermarket Show Available

Trade visitors and overseas buyers planning busy advance schedules can now pre-register for The Aftermarket Show at the NEC in January 2005. Industry research has shown that senior managers routinely plan their diaries and business travel up to six months in advance, and welcome the opportunity to make associated arrangements, such as pre-registration for shows and exhibitions. Answering this need, show organiser Haymarket Exhibitions is offering an online service at www.theaftermarketshow.com.

Exclusively available to genuine trade visitors, the site secures entry tickets and the all-new trade guide and will avoid the need to queue on busy show days. Entry includes access to both The Aftermarket Show and sister attraction Autosport International. Dedicated trade-only days will be Thursday 13th and Friday14th January 2005.

Goodyear Reports Results for 2004's First Quarter

The Goodyear Tire & Rubber Company has reported financial results for the first quarter of 2004, including record sales, higher unit shipments and segment operating income, and asmaller net loss compared to the first quarter of 2003. Goodyear reported record quarterly sales of $4.3 billion for the first quarter of 2004, up 21 percent from the prior-year period.

Tyre unit volume in the first quarter of 2004 was 55.7 million units, up from 52.6 million units in 2003. First quarter sales increased compared to the 2003 period due in part to stronger volume, higher pricing and a more-favourable product mix, as well as an estimated $200 million positive impact of currency translation.

Total segment operating income was $216.1 million in the first quarter of 2004, a five-fold increase compared to $42.0 million in the 2003 quarter. The company reported a net loss of $76.9 million (44 cents per share) for the first quarter of 2004, compared with a net loss of $196.5 million ($1.12 per share) in the first quarter of 2003.