Michelin to shut Dundee plant with loss of 845 jobs

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Dundee, UK – Groupe Michelin is to close its tire plant in Dundee, Scotland by mid-2020 with the loss of 845 jobs, the company informed employees there on 5 Nov.

The Dundee site, which opened in 1971, manufactures only 16-inch and smaller tires for passenger cars, explained a Michelin statement.

This market, it said, has faced serious difficulties in recent years due to a structural decline in demand for these tire sizes and competition from low-cost, entry-level products from Asia.

Read the source article at European Rubber Journal

Pirelli revives bias-ply production for its ‘Collezione’ vintage car tire range

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PADOVA, Italy — Pirelli Tyre is reviving production of bias-ply tires for classic car owners who are after the look and feel of tires used originally on their decades-old cars but built with modern materials and techniques for enhanced performance and…

Read the source article at Tire Business

Goodyear Reports 3rd Quarter 2018 Results

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The Goodyear Tire & Rubber Co. has reported results for the third quarter of 2018.

“We continued to improve the operating performance in our key mature markets, driven by strong volume growth, including significant increases in the more profitable 17-inch-and-greater rim sizes in the U.S. and Europe,” said Richard Kramer, chairman, CEO and president.

Read the source article at Aftermarket News

Tyre maker Nokian profit hit by Russia, Norway issues, emissions rules

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Nokian shares tumbled 14 percent on the latest warning from the automotive industry after a string of trimmed forecasts and weak results from Michelin, Continental and Daimler.

Nokian, which has a large plant in Russia and a smaller one in Finland, said 2018 sales and operating profit were now expected to be flat or slightly higher than 2017, compared with a previous forecast of growing sales and profit.

Read the source article at Stock Market Quotes and News

Pirelli, Rostec to double tire production at Russian plant

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Moscow – Pirelli C & SpA and Russian state-owned Rostec have signed a €100-million agreement to double production at the Voronezh tire manufacturing plant, according to press.

Italian news agency Agenzia Nova reported 24 Oct that the agreement was signed during the Italian prime minister Giuseppe Conte visit to Moscow.

As reported by ERJ, Pirelli signalled plans to invest in the Voronezh tire plant last July, saying it aimed to double production capacity to 4 million units a year.

Read the source article at European Rubber Journal

European Union issues definitive antidumping duties on Chinese truck, bus tires

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BRUSSELS—The European Commission has published definitive antidumping duties on imports of new and retreaded truck and bus tire imports originating in China that are measurably lower than the duties proposed in May.

Read the source article at Rubber and Plastics News

ETRMA, ISRG schedule joint meeting on natural rubber

BRUSSELS—”Bio-based, Sustainable, Critical: Natural Rubber and its Future” is the theme of a meeting scheduled for Brussels Nov. 15, to be co-sponsored by the European Tyre and Rubber Manufacturers’ Association and the International Rubber Study Group.

The two-hour session at the Hotel Le Plaza will begin with an introduction by the European Commission on how responsible, sustainable sourcing of natural rubber can support the implementation of the United Nations’ Sustainable Development Goals.

Read the source article at Rubber and Plastics News

Lanxess unveils new nylon 6 material

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FRIEDRICHSHAFEN, Germany—As it prepares for future mobility solutions, Lanxess is targeting electrically charged vehicles as a key growth area.

Read the source article at Rubber and Plastics News

Consumer and retail trends driving growth of tire market e-commerce

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E-commerce has been a key business disruptor across all industries and is forcing change, innovation and growth in the tire market. Still relatively new to the business-to-consumer replacement tire market, online tire sales sites have become significant for consumer research into tire types, attributes, reviews, pricing and availability. This trend and the expansion of e-commerce in general are leading to growth in online sales of tires, according to a new Smithers Rapra report, The Future of E-commerce for Tire Markets to 2023. (TRAC Members receive 15 per cent discount).

Across major tire market segments and geographic regions, the number of B2C replacement tires purchased online is estimated by Smithers Rapra at nearly 100 million units in 2018, or about 6.5% of the global market. This is expected to rise by an average of almost 19% per year to over 236 million in 2023, when the share will be nearly 13%.

 

E-commerce tire sales channel market 2015-23, by volume (million units)

 

Source: Smithers Rapra

 

Value growth will be somewhat higher, at 19.7% per year CAGR, from $7.1 billion in 2018 to $17.3 billion in 2023, faster than unit growth and reflecting modest price increases. While a degree of price competition within the online channel and versus offline retail will continue, the convergence of online and offline channels and the increasing importance of user experience relative to price will support higher prices in the channel over time.

End-use applications

Reflecting the numbers of vehicles in use, rates of tire replacement and rates of e-commerce penetration, the passenger car and light truck (light vehicles) segment is by far the largest, at 81% of volume in 2018, followed by motorcycles (12%) and then medium and heavy trucks and buses (7%). Light vehicles have been and remain dominant in absolute value and volume terms. In unit terms, motorcycles are a distant second, but in value terms, medium- and heavy duty trucks and buses are the next most important, although a much smaller segment.

Trends driving e-commerce tire sales

 

Consumer behaviour

Consumer preferences are ultimately the main market drivers for tire e-commerce with technology and retail developments enabling the change. Consumer behaviour and retail trends behind the uptake of e-commerce in tires include price sensitivity, reduced brand loyalty, time sensitivity and, increasingly, a desire for an omni-channel, which blends features of online and offline channels (already the case to some extent due to tire installation requirements).

Fitment proliferation

Fitment proliferation, the increasing number of available tire sizes, is also contributing to the growth of tires sales via the internet. This has been driven in part by the increase in rim diameters and the greater use of high-performance tires as OEM fitments, which is putting a strain on physical showroom and inventory space. E-commerce options help retailers and customers alike with education and availability. 

Growing economies and emerging markets

General economic and demographic growth serve as top drivers for tire e-commerce. B2C replacement tire e-commerce was initially a phenomenon of developed markets, led by Western Europe, followed by the US, which still enjoy the highest penetration rates. However, Asia-Pacific has already become the largest in unit terms and is on track to pass Europe in value terms during the forecast period, due to its large population and rapidly growing tire market (mostly motorcycle tires). Greater internet penetration and e-commerce readiness in developing markets are fueling the expansion of online tire sales. Very rapid growth will come from Eastern European countries and emerging economies such as China, India and Brazil, where levels of e-commerce penetration and vehicle density are comparatively low and growing.

For more information on the Smithers Rapra market report The Future of E-commerce for Tire Markets, visit https://www.smithersrapra.com/market-reports/tire-industry-market-reports/the-future-of-e-commerce-for-tire-markets-to-2023

Online Tire Market Business Growth Statistics and Key Players Insights: Michelin, Bridgestone, BF Goodrich, Goodyear, Hankook

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Online tire sale platform
The online retailing helps in reaching out too many consumers without launching stores and this results in cost benefits which are ultimately passed on to the customers. Moreover, increasing spending on e-commerce platform by OEM’s due to high internet penetration rate will drive the online tire market during the forecast period as well.

Read the source article at openPR.com