Continental Joins the Premiership
RMA Launches Green Tyre Dealer Scheme
Goodyear to Record Accounting Adjustments
Continental Acquires Majority Holding in Malaysian Joint Venture
World's First Full Service Tyre from Michelin
Cooper Sparkles in The Engineer Survey
Tyrespot Wins with Retreads
Mobile Tyre Fitting is Key New Trend of Contract Season
New Vans Move STS Burton into Top Gear
Michelin Form Rugby Partnership with Ballymena
Wales Environment Trust Launches rethink.retreads Campaign

Continental Joins the Premiership

Continental Tyres is strengthening its association with the beautiful game with a series of high impact perimeter advertising hoardings at several Premiership League football clubs. To kick-start the new season, hoardings are appearing at the following Premier League grounds: Birmingham FC, Charlton, Fulham FC, Leeds United FC, Manchester City FC and Southampton FC. In total, Continental has 52 boards on display in the FA Barclaycard Premiership, with some clubs having the boards in place during other cup competitions where available.

These locations provide a widespread geographical presence and the opportunity to target a far-reaching audience. Continental can also expect significant ITV and Sky Sports TV coverage. The ITV1 highlights programme, The Premiership, regularly attracts over 4 million viewers and is broadcast twice a week.

Continental's involvement in the Premiership reinforces the brand's on-going commitment to football. Its status as an Official Partner of the 2006 FIFA World Cup Germany(tm) is particularly fitting given the manufacturer's German heritage while its sponsorship of the Champions League in Europe from 1995-1999 paved for the way for development in this field.

RMA Launches Green Tyre Dealer Scheme

As a direct response to the challenges imposed by the market, the Retread Manufacturers Association in the UK has announced the launch of the Green Tyre Dealer Scheme, a new initiative designed for both car and truck retreaders, which the Association believes will transform the marketing of retreaded tyres in the UK. The scheme, whilst still in its formative stage, is unique in that it is being funded not just by the RMA, but through donations from individual car and truck tyre retreaders as well as by a number of prominent suppliers to the retreading industry.

The Green Tyre Dealer Scheme will form an integral part of a wider PR and promotional campaign. This will be the first generic campaign launched by the retreading industry and reflects the industry's determination to defend and expand its market by means of a co-ordinated campaign. The Green Tyre Dealer Scheme will have a number of key aims:

- To actively increase the size of the retread market by promoting the environmental benefits of retreading to specially selected target groups such as the environmentally aware consumer in the case of passenger retreads and government bodies, councils and other organisations with an environmental agenda in the case of commercial vehicle tyres.

- To direct consumers/customers interested in purchasing retreads to those retailers who stock them, thereby assuring that the retreading industry can influence distribution, rewarding those retailers who are loyal to the retreading industry and helping to reduce unnecessary switch-selling to cheap new tyres.

- To serve as an impetus for overall co-operation within the retreading industry and a starting point for generic campaigns to target other market sectors of interest to the retreading industry.

The initial campaign is planned to incorporate a scheme website to direct consumers to their nearest Green Tyre Dealer Scheme member, a targeted PR campaign, point of sale material and Green Tyre Dealer Scheme signs for scheme members, the publication of a Buyers Guide listing scheme members and retailers who are stocking retreads and a significant advertising budget to be used to raise awareness of retreads within target markets.

By launching this new initiative, the RMA says it does not pretend that it will allow the retreading industry to turn back the clock. However, what it will do is allow the industry to control its own future by optimising opportunities for all RMA members by creating and maintaining markets on behalf of UK retreaders. It should also be seen as a conscious decision to channel the industry's resources towards supporting the many retailers who actively support retreading rather than diluting those resources by attempting to persuade those who cannot, or will not be persuaded.

Goodyear to Record Accounting Adjustments

The Goodyear Tire & Rubber Company has announced that it will restate its financial results for the years 1998-2002 and for the first and second quarters of 2003 to record adjustments primarily resulting from the implementation of an enterprise resource planning accounting system (ERP) in 1999 and errors in inter-company billing systems.

These adjustments, which are being identified and corrected by Goodyear, do not affect the company's net cash position, and the restatement will not affect its access to credit facilities. Although the company is still reviewing the matter, the adjustments are currently expected to decrease net income over the restatement period by up to $100 million. It is expected that the adjustments will result in an improvement in the net loss for the first half of 2003.

Continental Acquires Majority Holding in Malaysian Joint Venture

Continental AG has announced that it has purchased a majority holding in the tyre business of Malaysian conglomerate Sime Darby Berhad, enabling the company to close a gap in its worldwide network of manufacturing operations and to tap the high-growth ASEAN region and Australia.

Effective retroactively as of October 1, Continental has acquired 51 percent of a joint venture bringing together the two tyre organszations DMIB Berhad and Sime Tyres International Sdn Bhd. In future the undertaking will operate as Continental Sime Tyre Sdn. Bhd.

"This gives us a strong manufacturing and distribution base for a market in which over 29 million passenger tyres are sold, making it more than twice as large as the Chinese market", said Manfred Wennemer, Continental's Executive Board Chairman.

Tan Sri Nik Mohamed Yaacob, Group Chief Executive of the Sime Darby Group said that the strategic alliance is a significant step forward for the Malaysian tyre industry and will undoubtedly put the Sime Darby Tyre Group in the forefront of the tyre technological developments and research with the new partnership having access to Continental AG's advanced tyre technology and one of the top brand name in tyres."

The company's tyre factories will be run under Continental administration and are located in the north (Alor Setar) and the centre (Petaling Jaya, near the capital Kuala Lumpur) of Malaysia. Boasting a current annual output of about four million passenger tyres, one million light truck tyres, and just under 300,000 truck tyres, Continental Sime Tyre Sdn. Bhd. now ranks as Malaysia's No. 1 producer of passenger tyres for the original equipment and replacement businesses, and occupies first place in the replacement business for commercial vehicle tyres.

World's First Full Service Tyre from Michelin

Michelin has launched the world's first ever "full service tyre" through its new Michelin OnWay Programme. From 1st September, customers in France who buy at least one Michelin tyre have been able to join the programme, which entitles them to a comprehensive package of free, personalised services and telephone support, available on a 24/7 basis.

OnWay, which is due to be gradually expanded across Europe, represents a significant investment by Michelin in the European aftermarket, a market which is estimated at 190 million tyres a year.

Cooper Sparkles in The Engineer Survey

Cooper Tire and Rubber Company, parent of Cooper-Avon Tyres Lts, has received exceptional recognition in the prestigious "Most Successful UK Engineering Companies 2003", compiled on behalf of the respected industry publication, The Engineer, by RSM Robson Rhodes' National Engineering Group. From an initial list of 900 companies with facilities in the UK, the fnal Top 50 saw Cooper Tire and Rubber Company emerge in 19th position.

The selection criteria were aggressive for the companies listed in the final 50. Company performance was assessed for the following: percentage change in turnover; percentage change in operating profit; earnings before interest, tax, depreciation and amortisation (EBITDA).

Tyrespot Wins with Retreads

Good news for retreaders in the UK. At a time when many uninformed tyre dealers have taken the easy option and deserted the retreading industry in favour of cheap new tyres, one major independent retailer and wholesaler is bucking the trend and proving that retreads offer substantial opportunities to switched-on tyre dealers looking to exploit the numerous market niches now being opened up by UK retreaders.

Durham based Tyrespot Ltd, who stock retreads from RMA member C-Tyres, has seen retread sales rise during the last two years and expects to increase sales by a further ten percent this year. John Shaw, Tyrespot's Managing Director says; "We have never changed our policy towards retreads. Our experience has shown that if we stock them, then we will sell them. This year we expect to sell over 20,000 retreaded tyres through our retail and wholesale business proving that it has been well worthwhile sticking with the product".

Shaw points out that much of Tyrespot's growth is being achieved in new product niches, emphasising the opportunities open to dealers willing to target these markets. Says Shaw; "although sales of 80 series retreads have stagnated, we have seen substantial growth in sales of retreads for 4x4 vehicles as well as an increase in demand for 65, 55 and 50 series tyres. It is clear that there is a large potential market for the sale of retreaded tyres to younger drivers who want to make sure that they are legal and who see the economic benefits offered by retreads. In addition, we are looking closely at the opportunities presented by retreads within the winter tyre market. As a result, we are well on the way to a record year of retread sales".

Mobile Tyre Fitting is Key New Trend of Contract Season

Mobile tyre fitting is the major new trend of this year's "contract season" when the vehicle leasing companies that form the core of the UK fleet market put their maintenance contracts out to annual tender.

David Goodyear, General Manager, AA Tyre Fit, says: "More than half of this year's major tyre fitting tenders include a stipulation for mobile tyre fitting compared to just a couple last time around. "We believe that this is a good indication of the strength of the impact that we have had in bringing mobile fitting to the attention of the market. The twin messages about the cost and service advantages of mobile are hitting home."

New Vans Move STS Burton into Top Gear

Customers of Burton-based STS Tyres & Exhausts are able to get back on track following the introduction of two new roadside assistance vehicles. The vehicles will provide a full on-site breakdown service for truck, tractor, agricultural and 4x4 vehicles, and will offer an immediate or one hour response time. Both new vehicles are fitted with the latest electric compressors for quietness, an air hydraulic jack for lifting heavier loads and an invertor for re-grooving truck tyres. Tyre repairs will make up the majority of work that will be undertaken by the new vans to ensure that customers' vehicles are back on the road as quickly as possible.

Michelin Form Rugby Partnership with Ballymena

Michelin has announced a partnership with Ballymena Rugby Club, the reigning AIB All-Ireland League Division One Club Champions prior to the start of the new rugby football season. The Michelin logo will be carried on the 1st XV team's shirts and other graphics will be visible at the Club's Eaton Park ground and in print and literature.

Michelin's Northern Irish tyre production factory is located in Ballymena and the global tyre manufacturer is aiming to develop this on-going sporting partnership within the local community. "We see this association as a natural synergy between our production operation and the very successful rugby club," said Graham Whitehurst, site manager of the Ballymena factory. "There are many people at the plant who are dedicated and enthusiastic supporters of the Club and this will strengthen our team-work philosophy."

Ballymena's success last season saw the team take the premier league title and ambitions are high for this year's kick-off. The season will start on October 25 at home to University College Dublin. This fixture will be a major family promotion with Michelin staff; family and friends especially welcome. Bibendum, the Michelin man will be in attendance and the Williams-Michelin BMW Formula 1 racecar simulator will be a pre and post match attraction.

Wales Environment Trust Launches rethink.retreads Campaign

The Wales Environment Trust under its CWMre Initiative has launches a new campaign to promote retreaded tyres and the activities of Welsh retreaders. The campaign, called rethink.retreads, is also being sponsored by The Welsh Assembly Government, The Welsh Development Agency and The Environment Agency Wales. This campaign has received full support from the major tyre industry representative bodies in the UK including The Retread Manufacturers Association and the Tyre Industry Council. "We are delighted at the enlightened approach to retreading being displayed by The Wales Environment Trust and we give the rethink.retreads campaign our wholehearted support. The campaign will be a major boon to the Welsh retreading industry"said Sheila Ikin, Director of the RMA.

The campaign will commence with a direct mail-shot to over 500 tyre purchase decision makers and policy makers and the launch of the rethink.retreads website (www.rethinkretreads.org.uk). Those who respond to questionnaires included in the mailshot and on the website, will receive a free CD-ROM with additional useful resources.