Competitors Gear Up for Fulda Challenge
Aftermarket Show Targets Tyre Industry Exhibitors
Continental Sales Up in First Half
Bridgestone Investment Continues with £½ Million Fleet
Kumho to Develop F1 Tyre
Goodyear Plans Cost Reduction Actions in Non-Tyre Businesses
Black Circles wins E-Strategy Business of the Year at The 2004 National Business Awards for Scotland
Nick Gregg Appointed to TIC Council
Bridgestone Tyres for BMW's All-New Sports Activity Vehicle
Kumho In Deal to Build Second Chinese Plant

Competitors Gear Up for Fulda Challenge

Following a six-month nationwide search for athletes with superb strength, speed and determination - as well as driving and skiing ability - 20 competitors were involved recently in an uncompromising fitness test and ultimate selection for the 2005 Fulda Challenge.

To be selected for the annual extreme sporting event in Canada's Yukon Territory, applicants had to battle it out during the initial UK selection process at the Commando Training Centre Royal Marines at Lympstone, near Exeter.

On the weekend of 11-12 September 2004, ten men and ten women placed themselves under the supervision of last year's UK team member CSgt Gary Bullen at the historic training base. Driven on by a team of elite marines, competitors were put through their paces as they competed for a place in the final qualification event. Organisers were looking for outstanding athletes that possess a high level of fitness and have the ability to cope with the ultimate in physical endurance.

Making full use of the centre's exceptional training facilities, the Royal Marines had planned an intensive weekend of sporting endurance designed to push competitors to their personal limits. The brutal schedule involved a number of endurance challenges designed to test mental and physical fitness, off-road driving ability and survival skills. Events such as a 12km road race, 16km mountain bike race, chasm crossing, rope climbing and car pulling were aimed to help the selectors find the toughest of competitors.

Five men and five women will be chosen to take part in the final European selection event in Sulden, Italy between 30 September and 4 October 2004. One man and one woman will be chosen to go to Canada and represent the UK in the 2005 Fulda Challenge (29 January-8 February 2005).

Fulda UK's Brand Manager Marcus White is keen to recruit a strong team: "The Fulda Challenge is not for everyone. The event requires excellent strength, winter sports experience, true grit, sheer determination and above all the right attitude. The selection event in Devon will provide a clear indication of an athlete's strengths and weaknesses before we embark on the next stage of the selection process in Sulden. The ultimate winners will be chosen to represent the UK in one of the world's most exciting and adventurous sporting events."

Aftermarket Show Targets Tyre Industry Exhibitors

Organisers of The Aftermarket Show at the NEC are targeting tyre industry exhibitors with a powerful marketing campaign as they seek to complete a full house of aftermarket exhibitors at the show. Thousands of tyre manufacturers, equipment suppliers, parts, accessories and consumables companies will receive a direct mailing campaign encouraging them to exhibit at January's event. Supporting the drive will be a dedicated tyre trade advertising campaign in major titles, while show organisers will be networking with prospective exhibitors at a series of industry events.

The push comes on the back of news that by mid-August more than 60% of space at the show has already been sold, with five months still to go before the exhibition opens its doors.

"We're delighted with the response to the show and pleased that we can confirm the interest by releasing these figures," explained Giles Brown, sales manager for The Aftermarket Show at Haymarket Exhibitions. "The tyre sector is a major priority for us, which is why we've launched the marketing campaign to persuade companies to join us in January. We realise that there's a lot of choice in the market but we're also confident that those who join us will be delighted with the number and quality of visitors that the show will attract," he added.

Well-known industry names such as Vredestein, wholesaler Nordisk Daek, equipment suppliers Supertracker and Mace Industries are among those to have confirmed their presence for 2005. The TIC is sponsoring the tyre element of the show while the NTDA will be making a second successive appearance. Tyres will also be a major attraction at neighbouring Autosport International, with Dunlop, Pirelli, Uniroyal, Yokohama, Fulda, Kumho and Silverstone all exhibiting their latest motorsport related and high performance products.

Continental Sales Up in First Half

Following a positive first quarter in 2004, the past three months has seen Continental AG continue to increase sales, with first-half consolidated sales increasing by 9.9% before foreign exchange effects and changes in the scope of consolidation. Including exchange rate effects and consolidation changes, sales were up 9.0% from EUR5,646.8 million to EUR6,157.4 million.

Despite the costs of restructuring the passenger tyre operations in the USA, the consolidated operating result or EBIT increased significantly to EUR484.4 million, up 21.4% from last year's figure of EUR399.1 million. Return on sales amounted to 7.9 per cent (PY: 7.1 %). Excluding restructuring costs for the Mayfield tyre plant (EUR98.9 million), earnings improved by 46.2%.

Bridgestone Investment Continues with £½ Million Fleet

Bridgestone has invested more than £½ million in a new delivery fleet, demonstrating its continuing commitment towards improving delivery service levels in the UK market. The new vehicles are all Bridgestone-branded to ensure the brand is given maximum exposure.

Andy Lane, marketing manager at Bridgestone UK, said: "This investment illustrates our commitment to improving the reliability and efficiency of our distribution facilities here in the UK. Service levels should be considerably improved, as breakdowns will be minimised. "Not only are the new vehicles more economical than the previous fleet vehicles, with better fuel consumption and lower emissions, but also they are more appealing to the eye. This will allow the Bridgestone brand to have a greater visual impact when the trucks are travelling up and down the country."

The new fleet is being managed by Exel, the distribution company that has taken care of Bridgestone UK's logistic requirements since 2001.

Kumho to Develop F1 Tyre

Kumho Tire Co Inc. has announced that it plans to develop a tyre for Formula One by 2007. The 30 billion Won (US$ 25 million) investment programme is aimed at providing a platform for Kumho to promote the technological capability and quality of its tyres to a worldwide audience. Following a thorough review, Kumho has already begun to implement the required changes in its R&D and production facilities and plans to begin in-house testing in 2005, leading to full F1 team testing in 2006 and 2007.

Since entering the motorsport arena in 1992, Kumho has achieved a dominant position as a manufacturer of Formula Three tyres, becoming Official Tyre Supplier to the International F3 Korea Super Prix in 2000, followed by the Marlboro Masters of F3 in 2002 and, most recently, the successful F3 Euro Series in 2003. The company also participates in GT racing around the world, including the prestigious JGTC (All-Japan Grand Touring Car Championship) and the Super Taikyu endurance series in Japan.

Currently ranked ninth amongst the world's top tyre manufacturers, Kumho expects to be ready to enter Formula One by 2007 but will decide on the precise timing of its participation after thoroughly weighing the expected benefits against the on-going investment requirement.

Goodyear Plans Cost Reduction Actions in Non-Tyre Businesses

The Goodyear Tire & Rubber Company has announced that its Engineered Products and Chemical businesses are implementing rationalisation programs to reduce costs in their operations. The company is to record a charge of between $23.5 million and $27.5 million for programmes in its Engineered Products business, where the company plans to reduce its workforce by about 240 positions by the end of the third quarter of 2005. Meanwhile the company also says it will record a charge of between $5.5 million and $6 million and reduce about 100 positions in its Chemical business by the end of 2004.

Black Circles wins E-Strategy Business of the Year at The 2004 National Business Awards for Scotland

Black Circles, the leading online tyre retailer and service provider to the Tyres-Online website , has picked up the top e-commerce award at The 2004 National Business Awards for Scotland.

The award, which endorses the business's strategy for trading predominantly online, confirms Black Circles position of driving the revolution taking place within the tyre retailing sector. The E-Strategy Business of the Year Award is now added to the growing list of prestigious business awards received by Black Circles and its 25 year old managing director Mike Welch including the Shell LiveWIRE Young Entrepreneur of the Year award.

Mike Welch said, "The tyre industry is ready for a revolution just like the ones that the book, insurance and travel industries have experienced in recent years. "Our overall business strategy, including the e-commerce strategy, is highly innovative and includes a highly appealing consumer offering. We sell top brand name tyres cheaply and we fit them at a location of your choice at a time of your choice. That has already been shown to be appealing to tens of thousands of consumers across the UK already and this award is further endorsement that we are continuing to go in the right direction."

Nick Gregg Appointed to TIC Council

Retail representation on the Tyre Industry Council has been strengthened with the announcement that Nick Gregg, group managing director at ATS Euromaster, has been appointed to join the Council later this year. As the tyre safety work of the Council continues to expand, particularly in the area of tyre safety clinics at major supermarkets and roadside tyre checks with the police, so it requires greater support from retailers as well as tyre manufacturers. Nick Gregg joins Kwik-Fit's Mike Craddock, National Tyres & Autocare's Alan Revie and Hi-Q's Graham Schofield, all major retailers that sit on the Council.

"We are delighted that Nick has agreed to join the Council," said TIC chairman Brian Smith. "Nick comes from outside the tyre industry and therefore brings a different and welcome perspective on the vital work of the Council".

Bridgestone Tyres for BMW's All-New Sports Activity Vehicle

BMW has launched an all-new sports activity vehicle - the X3. The X3 is a premium road car that can cope with most off-road situations, and is the latest BMW to feature xDrive - the company's technologically advanced 4x4 system that provides the X3 with a combination of on and off-road abilities. Using vehicle data from Dynamic Stability Control (DSC) sensors, xDrive constantly monitors driving conditions and can predict traction loss. It also improves stability, performance, and safety by instantly channelling power from axle-to axle.

To compliment the X3's unique design, the car will fit bespoke Bridgestone tyres as original equipment. The car will fit Turanza EL42 tyres, designed, like all the tyres in the Turanza range, to provide complete control without compromising comfort. The BMW X3 fits Bridgestone Turanza EL42 tyres in sizes ranging from 215/60 R17 H to 235/50 R18 H.

Kumho In Deal to Build Second Chinese Plant

Korean tyre manufacturer Kumho says it has signed a preliminary agreement to build a second Chinese factory in Tianjin. The company says it will ink a formal agreement with the Tianjin Economic and Technology Development Zone in March next year, completing construction by early 2007.