When do tires need to be replaced? The degree of tire wear is an important indicator. If it has been worn very badly and reaches a certain depth, it needs to be replaced to ensure safety. And we usually use a very common method to test the depth of the tire tread visually or with a coin. However, this may be solved in a smarter way.
Recently, Continental (Continental) Group stated that it intends to add an automatic pattern depth detection function, namely ETIS (Electronic Tire Information System), which is intended to be installed on new models by 2017. The principle is that it is possible to gradually change the rolling characteristics of the tire by inferring the pattern depth through “smart software”.
A tire pressure sensor calculates the running characteristics from changes in tire deformation. If the pattern depth is lower than the specific threshold of the tire, the signal of the on-board electrical system will alert. In this way, it will be more timely to let the car owner know when it is time to change the tire.
From January to May 2014, the export sales of Shanxi Double Happiness Tire Industry Co., Ltd. accounted for more than 50% of the total sales. Recently, Double Happiness Tire participated in the 2014 Dubai International Rubber and Tire Exhibition. This is the seventh appearance of Double Happiness Tire at the **** exhibition this year after participating in the 28th Essen Tire Auto Parts Exhibition in May.
Since last year, Double Happiness Tire has increased its export products. Through the introduction of technology research and development teams, the company has strengthened its research and development capabilities and enriched its product pedigree. R&D personnel visited Singapore, the United States, Peru and other foreign markets to understand road conditions and product demand, and successively developed 37 specifications and patterns for export products.
According to the website of the Ministry of Commerce, the Ministry of Development, Industry and Foreign Trade of Brazil issued Order No. 32 on June 17, deciding to initiate an anti-dumping review of truck tires imported from China. The SADC tax code of the product involved is 4011.20.90.
On June 24, Yanchang Petroleum Northwest Rubber’s annual production line of 8 million semi-steel radial tires was completed and put into operation, filling the “blank” of Shaanxi semi-steel radial tires. On the same day, Vice Governor Li Jinzhu visited the rubber company for investigation and held a symposium.
It is reported that the project has a total investment of 1 billion yuan, and construction started in January 2013. It only took more than a year to complete and put into production, creating the fastest rate of industry construction. The project has introduced the most advanced four-composite extruder, liquid nitrogen vulcanizer and other world advanced equipment, and the technology has reached the international advanced level. So far, the production capacity of radial tires in our province has reached 10 million.
Northwest Rubber Semi-steel Radial Tire Project was completed and put into production
On the same day, after in-depth investigation of the production workshop of Yanchang Rubber Semi-steel Radial Tire Project, Li Jinzhu pointed out that it is necessary to aim at the development goal of “****, world **”, insist on leading product upgrades and enterprise development with management innovation, technological innovation and market innovation, and constantly Enhancing the stamina of the company’s development; actively participating in international competition and establishing the brand image of *** tires; constantly innovating the talent working mechanism, optimizing the development environment, and building a talent depression in the tire industry. The Provincial State-owned Assets Supervision and Administration Commission, the Provincial Department of Industry and Information Technology and other departments should strengthen service guarantees, actively build cooperation platforms, and earnestly do a good job in the bank-enterprise docking, production and sales docking and industrial chain docking in the province, and actively help companies develop markets and promote corporate transformation and upgrading. Xianyang City should further optimize the investment environment, proactively provide high-quality services, and make every effort to help enterprises solve their problems.
The possibility of restructuring involving large tire companies is increasing day by day. The opportunity stems from the competition surrounding the rapidly growing emerging market countries. With the rise of emerging companies, a life-and-death battle is about to begin.
In February 2014, Yokohama Rubber signed a technical cooperation agreement with South Korea’s Kumho Tire. In June, the two companies had just reached an agreement on the joint development of tire environmental protection technology, but the eyes of Yokohama Rubber’s president, Noji Hikoshun, set his sights on the future.
“Capital cooperation goes without saying. If both parties feel advantageous, the merger will do. I want to adopt the form of a holding company, and retaining the brands of both parties is also an option.”
Kumho’s sales are 60% of Yokohama Rubber’s. The company has experienced bankruptcy and is a “stained” company. In view of this, this cooperation has not received much praise.
But Yokohama Rubber doesn’t mind. Two years ago, the company’s president, Namun Chung-shin, met with Park Samguk, the president of Kumho’s parent company Kumho Asiana Group. With the deepening of the exchange, Nanyun learned about the technical strength of Kumho.
When Japan’s time-honored brand and South Korean startups began their relationship on the premise of “marrying”, it was the day when the two companies decided to part ways. “What are they thinking!”
Late on the night of February 13th, upon receiving the company’s contact, the executives of Sumitomo Rubber Industries were shocked-the company’s partner, Goodyear, USA, published the information submitted to the US Securities and Exchange Commission on the Internet. Goodyear wrote in the material: “Since Sumitomo Rubber’s anti-competitive behavior is clarified, we will terminate the cooperative relationship.”
This has an early sign. About a month ago, Goodyear filed an application to terminate the cooperation, but when Sumitomo Rubber was preparing to discuss a friendly breakup with it, it suffered a blow. Sumitomo Rubber immediately submitted a rebuttal to the international arbitration institution.
In 1999, in the envious eyes of other companies, the two companies “hand in hand” and spent 15 years of sweet time. However, the ending after *is a drama of divorce.
Difficult emerging market country strategy
Now, the global tire industry is precarious. The core of the oscillation is undoubtedly the emerging market countries. According to the forecast of Mizuho Bank, in 2020, the world’s new car sales will expand to 98.61 million. Although the Japanese, North American and European markets have stagnated, sales in emerging market countries will surge to 59.4 million vehicles, 1.5 times that of 2010. The growing middle class China and India will play the leading role.
“In emerging market countries, we must first start to become stronger” (Toyo Rubber Industry President Nobuki Akira). Facing the future “Golden Mountain”, major companies are salivating, but for now, no company has successfully conquered new markets.
Tires are divided into new car tires that are sold wholesale to automobile companies, and replacement tires that are retailed at tire sales stores and gas stations. In developed countries, the ratio of the two is 6:4, and the majority of new car tires are sold, while in emerging market countries where the circulation of second-hand cars is huge, it is better to replace tires. The global tire demand in 2020 is 2.1 billion, of which new car tires account for only 450 million. The number of replacement tires is 1.66 billion, which is more than three times the former.
Therefore, emerging market countries cannot apply the developed countries’ strategy of focusing on auto companies. Because most consumers look at the price and not the brand when choosing replacement tires, the three giants Bridgestone, Michelin, and Goodyear have only 1 to 3% of the Chinese market.
Faced with such a situation, of course large companies will not wait to die. To increase the sales of replacement tires, retail outlets must give priority to using their tire products.
For this reason, Bridgestone has opened more than 300 “Wings of Cars” chain stores in China. These stores not only sell tires. The brand will also be promoted by providing independent customer services such as free regular inspections.
The flames of friction outside the scope of cooperation
On the other hand, Sumitomo Rubber’s chain stores in China will increase from 570 now to 1,000 in 2015. There are also more than 650 chain stores in India.
The original cooperation content between Sumitomo Rubber and Goodyear is that Goodyear produces and sells Sumitomo Rubber’s main brand “Dunlop” (DUNLOP) in North America and Europe, and Sumitomo Rubber sells the “Goodyear” brand in Japan. So “Since 10 years ago, Sumitomo Rubber has focused its development on areas outside North America and Europe in order to avoid competing with Goodyear in the market.” (Executive Director, Business Planning Director Takanori Aoi).
However, the irony is that a kindness turned out to be a source of friction. In emerging market countries outside the framework of cooperation, Sumitomo Rubber’s Dunlop and Goodyear are competing more and more, and the relationship between the two has also become tense.
SMBC Nikko Securities’ senior analyst Kunihiro Matsumoto estimated that the loss of Sumitomo Rubber’s loss of the cooperation is equivalent to 50 billion to 60 billion yen in sales and 13 billion yen in operating profit. Although the impact is not small, Matsumoto pointed out that “if we continue to expand our business in emerging market countries based on the current momentum, we will be able to recover the losses in just 3 to 5 years.” In Matsumoto’s view, if we look at the medium and long term, the dissolution of cooperation will help strengthen Sumitomo Rubber’s business foundation.
In addition to starting ground warfare by opening additional stores, companies also boldly launched air warfare. In May 2014, Serie A staged the Milan Derby. In the TV broadcast, the blue “TOYOTIRES” LOGO appeared in the eye-catching position of the stadium.
Toyo Rubber signed an agreement with AC Milan, where Honda Keisuke is located, and became the team’s first senior sponsor from Japan. At first glance, this seems to be an advertising strategy for the Japanese and European markets, but the company’s idea is not that simple. “This is actually to start Russia, which played before Honda, and the popularity of Asia and the Middle East, which pays attention to European football” (the company). It’s not just big companies that target emerging market countries.
Among the top 20 tire sales in 2012, emerging companies won ten seats, occupying half of the country. In the past ten years, although the sales of the Big Three have grown steadily, the total share has decreased by 17 percentage points. The momentum of emerging companies is evident.
In addition to representatives of emerging companies and Kumho, which is cooperating with Yokohama Rubber, Korean companies such as Hankook and Nexans have also emerged. With the growth of South Korean Hyundai Motor, which has become a global manufacturer, these companies have expanded their business scale, and their development trajectory is the same as that of Japanese companies in the past. Until not long ago, most of the tires of emerging companies were the first-class products, and the auto companies in developed countries seemed to have nothing to do with it.
However, the current situation is not what it used to be. Leading companies such as Toyota, Germany’s Daimler and BMW have successively adopted the products of emerging companies for their new cars. The passenger car tires of emerging companies that rank among the top ranks “have not much difference in quality from those of Japanese companies” (Nissan Motor).
Bridgestone (China) Investment Co., Ltd. recently announced that the company’s Fengchitong brand fixed-load Lianglu long-life truck and bus tires, FS410, has been put on the market.
The relevant person in charge of the company said that the new product has been highly praised and recognized by Chinese commercial vehicle users after the launch.
According to reports, the new products launched this time are mainly for semi-trailers, bicycles, high-speed buses and other vehicles. Its pattern design can evenly disperse the ground pressure, significantly improve the tire’s partial wear resistance, and ensure that the vehicle can travel long distances on good fixed-load roads and high-speed roads. Compared with existing similar products, it has a longer service life and better Stability of handling.
Bridgestone stated that the FS410 carcass is suitable for multiple retreading due to its excellent durability.
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