Challenge Bibendum Achieves Progress in Sustainable Transport Technology
TIC Awards Recognise Support for Tyre Safety Work
Firms Urged to Tread Carefully with Tyres
Turnaround Achieved at National Tyres
Michelin Launch Joint Venture with TRW Group
Continental MD Gives Perspective on Next 10 Years in the Tyre Market
Cooper Signs Supply Agreement with Hangzhou Zhongce Rubber
Continental With Nine-Month Figures for 2003
Birmingham Hosts Driving Brain National Final
Cost of Kerbing Grows as Larger Wheels are Fitted to Fleet Cars
Michelin to buy Stake in Apollo Tyres
Formula One Sail into Southampton
Vredestein to Attend Tyre ASI
Rick Navarro Joins Goodyear as Vice President, Business Development
Uniroyal Crowns UK's Best Young Driver

Challenge Bibendum Achieves Progress in Sustainable Transport Technology

The 2003 Edition of Challenge Bibendum took place at Sonoma, California in October and resulted in excellent progress being made on a variety of technology fronts. "One thing is clear, there are many choices for environmentally positive transportation," said Gerard Fresson, director of the International Technical Committee for Challenge Bibendum. "One can find in each category vehicles that are achieving excellent levels in emissions, noise and fuel economy - without compromising performance or safety measures."

Challenge Bibendum is the largest environmental vehicle event in the world. Created and organised by Michelin, the event takes place annually and brings together all participants in the transportation industry to highlight and discuss the progress being made towards sustainable mobility and environmentally positive transportation. Vehicles are also put through a number of tests, the purpose of which is to demonstrate that the vehicles of the future can be clean, safe, reliable and fun to drive.

The Challenge Bibendum tests comprise an exhaust emissions test performed prior to the Challenge and a series of technical tests held at Infineon Raceway near Sonoma, California incorporating acceleration, braking, slalom, drive-by noise and fuel efficiency tests for Light Duty vehicles (car, SUV, van, pickup) and acceleration, drive-by noise, fuel efficiency Heavy Duty vehicles, finishing off with a road rally in and around Sonoma.

Thirty-two competition vehicles received Gold Awards for emissions levels. This represents all of the different technologies involved in the evaluation from electric vehicles to internal combustion gasoline engines. The Gold Award corresponds to SULEV rankings by California and U.S. standards - achieving zero or near-zero emissions. Less noise pollution is another goal of sustainable mobility and the participants at the 2003 Challenge Bibendum are achieving that goal. Six vehicles earned Gold Awards and 16 vehicles earned Silver Awards.

The Noise Award winners represent seven different energy sources and propulsion systems from twelve different participants. Thirteen of the noise winners are production vehicles, meaning consumers can choose quieter running vehicles today that can positively impact the noise pollution in their communities. "Participating internal combustion engines as well as fuel cell vehicles and electric battery cars are producing a fraction of the noise generated by the average car on the road today," said Jeff Hidde, technical director for the 2003 Challenge Bibendum.

In the Fuel Economy competition, once again a wide range of technologies and energy sources achieved excellent results. "This is not surprising," said Fresson. "When you give engineers a chance to utilize a variety of technologies, the results converge with the same energy efficiency." In the performance tests, seven percent of competing vehicles earned a Gold Award for Slalom. And all of these were internal combustion engines.

Frontal Crash Impact Safety is the newest addition to the Challenge Bibendum evaluations and the results produced excellent news in regards to vehicle safety. Thirty-five percent of production vehicles received an excellent ranking for Frontal Crash Impact Safety. An additional 60 percent received good results. "These advanced technology vehicles are in the upper end of the market when it comes to crash safety," said Patrick Oliva. "This proves that one need not compromise vehicle integrity to achieve environmental goals."

"Overall, the progress towards sustainable mobility by all of the participating technologies and energy sources is very impressive," said Oliva. "There is no single choice, no one path alone to achieving our ultimate goal of environmentally-positive road transportation that is enjoyable to drive and safe for drivers and passengers. Each year, the variety of technologies and creative innovations displayed offer proof that sustainable mobility is within our grasp."

TIC Awards Recognise Support for Tyre Safety Work

The Tyre Industry Council Awards, sponsored by Entyrety, presented for the first time at the inaugural Rubber Industry Dinner held at the Chateau Impney Hotel in Droitwich, recognise and reward outstanding contributions to the work of the TIC in the area of tyre safety.

This year's inaugural Tyre Safety Industry Award went to Kwik Fit, a company that has made a consistent and long term commitment to tyre safety and support for the work of the TIC. The award was accepted by Mike Craddock, strategic development director at the company. The Tyre Safety Professional Award was presented to Strathclyde Police, one of the first UK forces to actively work with the TIC to develop roadside tyre checks, a programme that the force has maintained and enhanced over the years. The award was presented to Superintendent Derek Greenwood.

Finally, the Tyre Safety Achievement award was presented to TIC road safety advisor Ken Malcolm. Ken has worked for the TIC for eight years since his retirement from Strathclyde Police.

Firms Urged to Tread Carefully with Tyres

Businesses in Greater Manchester, Cheshire and Merseyside are being targeted by the Environment Agency in a campaign to reduce the number of tyres that are being flytipped in the area. The Agency will be contacting around 1,500 tyre dealers, garages, vehicle dismantlers and scrapyards this month with information and advice on the proper disposal of used tyres.

The aim of the campaign is to remind producers of waste tyres that they are legally responsible for ensuring that tyres are only disposed of by licensed waste carriers, who should be able to produce a registration certificate and a waste transfer note to be signed by both parties. Any business that fails to make these checks could be liable for prosecution and an unlimited fine.

Members of the public who see tyres or other waste being dumped illegally can call the Agency's free 24 hour hotline on 0800 807060.

Turnaround Achieved at National Tyres

A dramatic turnaround from a £44 million loss in 2001 to an £8 million profit in 2002 has been confirmed with the publication this week of group accounts for the company that owns National Tyres.

Axle Group Holdings Limited purchased National Tyres and Autocare and Viking International from Continental for £24m in January 2002. Included in the purchase price was the core business of 210 retail outlets and 10 national warehouses. Also included was a substantial property portfolio of over 200 surplus properties. The company has effectively used these surplus non-core assets to pay the consideration. The company is now debt free.

National Tyres is now looking to expand its 210 high street branch network by acquisition. The transformation of the business has attracted interest from the financial community, keen to finance the company's growth plans. On a like for like comparison, annual sales at National Tyres' operating branches were up by 20% and sales are projected to rise by a further 20% in the year to December 2003.

Chairman and Chief Executive Alan Revie explains the longer term vision for the business, "Quite simply, we want to be recognised as number one in our market for quality service, we want to create a consistently profitable company making at least a 10% return and we want to build a larger share of the market than anyone else."

During 2003, a £2 million investment programme has included re-badging and new signage at retail branches, featuring the new 'friendly', animated National characters which also figure prominently in the company's high profile national press advertising. The number of approved MOT test centres is being doubled from 50 to 100, generating valuable new business. The fitting bays at branches are being upgraded with new equipment and underlining the focus on people development, training centres have been opened in Bootle, Gloucester and one is planned for Scotland. The company's own fleet of delivery vehicles is also being upgraded.

Michelin Launch Joint Venture with TRW Group

Michelin and TRW Automotive have announced a joint venture to bring advanced tyre pressure monitoring systems (TPMS) to market worldwide. The new joint venture, EnTire Solutions, LLC is a natural extension of collaborative efforts over the past three years and will concentrate on direct TPMS for passenger cars and light trucks. Based in the United States, the joint venture will be led by Richard Wolfe, a long-time TRW executive, now CEO of the new company.

Continental MD Gives Perspective on Next 10 Years in the Tyre Market

At a dinner on November 7th 2003, to mark his 10 years as Managing Director of Continental Tyre Group, Brian Smith looked back over the tyre market developments of the last decade in the UK and gave some predictions of the possible changes in the decade to come.

In his summary Smith said: "Over the last ten years we have seen an explosion in tyre product offerings, a proliferation of brands, especially budget and a strong increase in truck tyre retreads contrasting with the demise of the passenger retread market. And in the next ten years we can look forward to even greater complexity of sizes, profiles and performance, standardisation of run-flat technology and a rationalisation of brands that will see the return of the premium brand.

While consumers are becoming ever more demanding, the industry has been slow to deliver an improved service in terms of car tyres, although truck tyre dealers have successfully improved service levels to their commercial customers. By 2013, the industry will have recognised that excellent service gives competitive advantage and improved profits and the winners will be delivering outstanding service through partnership across the delivery chain.

It's been a turbulent decade for sales channels. Future stability will be driven by profit and consumer choice. We will see a further reduction in tyre manufacturer retail chain market share, while car dealers and car garages grow, as well as those independent Fast Fits and Specialists who develop and implement good strategies around customer service and high value customers.

Over the last ten years, tyre safety has improved so much it is too often taken for granted by drivers. Attention on tyres and their role in road safety, however, will grow over the next ten years with an emphasis on educating drivers that 1.6mm is not the minimum recommended tread depth, especially in the wet - it is more like 3mm.

Tyres and the environment remains an emotive issue, yet now only 35% of tyres have to be disposed of in landfill and the like, with 65% being reprocessed. This profitable reuse of tyres will grow and reprocessing capacity will handle the 2006 tyre landfill ban. People will act responsibly and there will be no tyre mountain crisis.

Despite some reservations over their relevance, tyre trade associations and industry representation are here to stay and as issues facing the industry become larger and more complex, the whole industry must combine to respond effectively".

Cooper Signs Supply Agreement with Hangzhou Zhongce Rubber

Cooper Tire and Rubber Company, the US based tyre manufacturer, has announced that an agreement has been signed with Hangzhou Zhongce Rubber Company, Ltd., located in Hangzhou, China, to supply Cooper with 250,000-350,000 radial medium truck tyres (RMTs) annually. All tyres will be produced according to Cooper's technical specifications under Cooper's proprietary brand names. Tyre moulds and other related equipment are in the process of being transferred from the Albany, Georgia facility where all of Cooper's existing truck tyres are currently produced.

Continental With Nine-Month Figures for 2003

Continental AG has reconfirmed its ongoing upswing in sales and operating results with its third quarter results, despite continued sluggish business activity in the automotive industry. Before exchange rate effects, consolidated sales rose by 5.7 percent, compared to the first nine months of the previous year. In particular because the euro was strong against the US dollar, consolidated sales, at 8,485 million euros, were at the prior-year level (8,484 million euros). In the third quarter the consolidated operating result or EBITA (EBIT before regular goodwill amortization) reached 262 million euros. So the 9-month consolidated operating result increased by 20.7 percent to 661 million euros (2002: 547 million euros). The return on sales hence amounted to 7.8 percent, compared with 6.5 percent a year ago. Consolidated net income went up to 245 million euros (2002: 217 million euros). Earnings per share rose to 1.86 euros (2002: 1.68 euros).

The Passenger Tyres division increased sales by 2.1 percent to 2,821 million euros (2002: 2,763 million euros). Before changes in the scope of consolidation and exchange-rate effects, sales were up 7.3 percent. Approximately six million more tyres (plus 9 percent) were sold than in the prior-year period. Changes in consolidation from Commercial Vehicle Tyres to Passenger Tyres produced an additional 23 million euros for the first three quarters. The Passenger Tyres division lifted its operating result (EBITA) by 50.8 percent to 239 million euros. Losses in the NAFTA region were more than outweighed by the good results in Europe, in particular the successful business with winter tyres (13 percent more than in 2002). The return on sales went up from 5.7 percent in 2002 to 8.5 percent now.

Nine-month sales of the Commercial Vehicle Tyres division declined by 8.7 percent to 894 million euros (2002: 979 million euros). Before changes in the scope of consolidation and before exchange rate effects, sales grew by 1.8 percent. In Europe, total volume sold to the vehicle manufacturers and to the replacement market increased by 3 percent. A 1 percent gain was recorded for sales volumes with the automotive industry in the NAFTA region. The higher cost of materials and additional social welfare expense in the USA had an adverse effect on earnings. The operating result (EBITA) amounted to 57 million euros (2002: 82 million euros), the return on sales declined to 6.4 percent (2002: 8.4 percent).

Chairman of the Executive Board Manfred Wennemer commented: "Owing to the gratifying gains in volume, we are raising our earnings forecast. We now anticipate an operating result (EBITA) for 2003 of more than 750 million euros. For the year as a whole, we anticipate net income to be higher than for the previous year".

Birmingham Hosts Driving Brain National Final

Dunlop Tyres has chosen its home city as the venue for the final of its national search to find Britain's hottest motoring brain. Thousands of people entered the Driving Brain of Britain competition on Dunlop's website, and after regional finals all over the country, there are now eight brainy drivers competing in the national final on Saturday 29th November.

The prestigious event takes place at the city's Millennium Point, which already has ties with Dunlop due to the Thinktank exhibit 'The Railton Mobil Special'. This legendary car, which is fitted with Dunlop tyres, smashed the world land-speed record in 1938 and in 1947 driver John Cobb broke the 500mph barrier on land, a record that stood for 25 years.

The national Driving Brain of Britain winner will enjoy a driving experience of a lifetime and gets to choose from a number of amazing motoring prizes. These include Ferrari or Audi Ice driving in Italy, the chance to take a Porsche or Ferrari home for the weekend, and a Supercar Experience, where the winner can drive five of the world's ultimate cars including a Lamborghini Diabolo SV and a Dodge Viper RT/10.

Cost of Kerbing Grows as Larger Wheels are Fitted to Fleet Cars

The cost of kerbing is growing for fleets thanks to the trend for ever larger alloy wheels fitted with ever lower profile tyres. Figures produced by AA Tyre Fit show that a new wheel is required in 15% of single tyre fitments by the company - usually caused by contact with a kerbstone. This is estimated to be double the rate of a decade ago.

David Goodyear, General Manager, AA Tyre Fit, says: "Look back 10 years and a kerbed wheel on a mainstream fleet car usually meant nothing more than a replacement 14 inch tyre. The profile of the rubber was high enough that usually the wheel itself was undamaged. "Today, we see more and more cases where cars running on 17 inch alloys are kerbed and the whole tyre and wheel need replacing. The bill for doing so can easily amount to £500 - or even more for prestige manufacturers."

Goodyear warned that failure to replace a badly damaged wheel had both safety and residual value implications. He explains: "A wheel with a badly deformed rim will not allow the tyre to seat properly and could lead to uneven handling or even the tyre detaching from the wheel at speed. It will also badly affect the value of the car at disposal time." Goodyear says that similar cost and safety problems can also arise due to the effects on tyres and wheels of road debris or minor accidents. He says: "While kerbing appears to be the main problem, lower profile tyres and wheels are more easily damaged beyond repair in a whole range of situations."

Michelin to buy Stake in Apollo Tyres

Michelin, is to buy 14.9 percent of leading Indian tyremaker, Apollo Tyres Ltd, giving it a firm foothold in India's $2.2 billion-a-year tyre market. The two companies are also to set up Michelin Apollo Tyre Ltd, a joint venture to make truck and bus radial tyres in India in which Michelin will hold 51 percent and Apollo 49 per cent.

The joint venture will invest $70 million over the next four years to set up a plant to make truck radials bearing the names of both companies. It will also market Michelin tyres in India. In addition, Michelin will provide technical assistance in making Apollo passenger car radials. Apollo, which has almost a quarter of India's tyre market, also said it had ended its existing technology supply agreement with Continental.

Formula One Sail into Southampton

Formula One opened their Southampton autocentre recently with a 'family fun day' launch filled with lots of surprises. The successful day attracted hundreds of visitors to the site, who made the most of the opening offers and joined in with the entertainment, which included a Pirelli rally car simulator.

Paul Glencross, managing director of Formula One Autocentres, was thrilled with the response to the launch. He said: "We were overwhelmed by the fantastic turn-out from the local motorists and their families on the day and the Southampton centre has continued to be one of our most successful ever since!" The new facility represents an enormous investment for the family-owned business and continues an extensive expansion programme scheduled for 2003/2004.

Vredestein to Attend Tyre ASI

Vredestein has chosen the Tyre ASI event at the NEC from 8-11 January 2004, as a springboard for its 2004 promotional programme. It plans to promote the high performance and designer image qualities of its tyre product range to independent tyre specialists and motorsport enthusiasts. Vredestein's Sportrac 2 and Ultrac High Performance tyres will be featured, while the appearance of the Giugiaro Design Aston Martin 2020 on the stand is sure to steal a significant level of attention. The latest version of the Ultrac tyre, Ultrac Y 19-inch, will also be highlighted, as it will shortly be released into the UK market.

Tyres ASI is being launched in conjunction with The Aftermarket Show, which also includes PACE ASI (for parts, accessories, consumables and electrics) and GE ASI (for garage equipment). Tyre ASI is co-sponsored by the Tyre Industry Council.

Rick Navarro Joins Goodyear as Vice President, Business Development

The Goodyear Tire & Rubber Company has named Rick Navarro, vice president, business development, effective Nov. 1, 2003. He will report to Clark E. Sprang, senior vice president, business development. Navarro will be responsible for developing and coordinating strategies to achieve business growth and profitability through acquisitions, divestitures, mergers and joint ventures for Goodyear.

Uniroyal Crowns UK's Best Young Driver

Uniroyal has presented 18-year-old Craig Shaw, from Hereford, with the coveted 2003 young driver of the year title. The leading tyre manufacturer made the announcement together with the Royal Society for the Prevention of Accidents, Advanced Drivers Association and the Catherine Kenyon Trust.

Aimed at motorists up to 24 years old - the group most at risk on the roads - the competition took place at the Silverstone Circuit on 12 October 2003. Forty finalists took part, all previous winners from eight regional heats. Each underwent a one-hour road test, monitored by Thames Valley Police Instructors, and took a skid control test, a manoeuvrability exercise and a rigorous Highway Code test. Impressing the judges with his advanced level of safety awareness, Craig drove away with the winner's trophy and grand prize of a place in a Uniroyal Team Challenge race at a major UK circuit in 2004 and professional race training. Following closely - but at a suitably safe distance - came 22-year-old George Dann, from Lincolnshire, who was awarded a similar trophy and a set of Uniroyal tyres worth £250.