Pirelli Yielded to Hankook On The European Market?
Will Hankook push out Pirelli from the top five tire manufacturers of Europe?
The market research conducted by Hankook showed that the Michelin company remains an absolute leader on the tire market (both in segments of passenger and truck tires). At the same time a new player appeared in the previously stable top five – namely Hankook.
Why did Hankook decided to publish its research now, after one of the most difficult periods in the history of the market? It can be explained by the fact that 2009 was an extremely successful year for the Korean company. The peculiar combination of factors has changed the state of affairs during last 12 months. The major question now – will Hankook be able to retain its positions in Europe in the following years?
Here is the forecast of Hankook for the end of 2009 (passenger tires market): Michelin will remain the leader with the market stake of 20%, the second place goes to Goodyear Dunlop (18%), the third – to Bridgestone (12%), Pirelli has 8%. The most interesting fact here is that Hankook holds the 7th place with 7%. It means that its lagging behind Pirelli is not so big.
What concerns truck tires the first place again goes to Michelin (32%), the second place – Goodyear Dunlop (18%), Continental holds 16% of the market, Bridgestone – 13%. According to Hankook, it performs even better in this segment and holds the 5th place thus having overtaken Pirelli.
Since December has just begun the data can be regarded only as a forecast. At the same time Hankook gives 18% to other companies what means that its research is based on the analysis of the whole market. It also cannot be the result of companies that are members of ERMC Europool because the stake of Cooper and Trelleborg would be much higher in this case. Thus, there may be doubts regarding the correctness of the data in respect of sales volumes of Cooper, Kumho, GTRadial, Nexen, Nokian, Toyo, Yokohama etc. The rise of their stake will inevitably lead to the reduction of that of the five major companies. Anyway, only time can eliminate the doubts.
New UHP Tires By Continental Appeared On The Market
Continental has presented UHP tires that will be used for the original equipment of Ferrari F430.
Continental has launched a new tire for the most powerful cars – Continental ContiSportContact 5 P. The tire is already used for the original equipment of a few Mercedes AMG models that have been presented at the Frankfurt motor show together with a new Audi TT RS. The official premiere took place in Portimau (Portugal) and the representatives of the company say that the tire is the evidence of the technological supremacy of Continental.
Continental ContiSportContact 5 P is available in a few sizes developed exclusively for the rear axle together with the models for front and both axles. The modernization and perfection of the tires moves at a high pace – in Portugal Continental has showed two prototypes of Continental ContiSportContact 5 P tire called EVOlution. Besides this, the representatives of the company have explained by which means Continental strives for the reaching of the balance between driving performance, high-speed capability and safety. The tire features tread pattern with a unique combination of blocks and ribs. Black Chilli rubber compound ensures outstanding steering control and effective braking what is extremely important for the tires of this segment.
Nikolai Setzer, head of consumer and light truck tires department of the Continental company, has given high praise to the UHP segment: “In spite of the considerable recession that the market has experienced during last 15 months, we haven’t noticed fall of demand in the segment of the tires with W,Y and Z speed rating letters.” Mr. Setzer has also noted that the constant rise of demand in this segment has led to the development of another new product – ContiSportContact 5 tire (model related to ContiSport Contact 5 P) that will be presented in 2011. “Continental will not stop investing in research and development”, - concluded Mr. Setzer.
Continental: Pseudowinter Tires With M+S Mark Overflowed The Market
Continental experts warn that one shouldn’t buy so-called winter tires in spite of the presence of M+S (Mud & Snow) mark as they are not suitable for winter conditions.
The reason is that the directive of the European Union doesn’t describe in detail the features that M+S tires must have. It means that the mark can be put according to the will of the manufacturer. The fact that the standard equipment of American cars includes all-season tires means that even summer tires produced in Asia are marked M+S. Of course, such tires are not intended for winter conditions.
The experts of Continental warn the consumers that they should be sure about the winter properties of the chosen tires.
Austrian motorcycle, automobile and tourist club OAMTC has recently tested summer tires with M+S mark. “The braking distance on the snow-covered surface at 30mph speed is two times longer if to compare with normal winter tires” – says Friedrich Eppel, the expert of OAMTC. “When the car equipped with winter tires had already stopped, the car equipped with low-quality tires continued to move at 25mph speed”.
Tests of haul capability at the beginning of the ride also showed alarming results – any driver who starts riding on snow-covered parking area or slippery road will threaten the safety of other road traffic participants due to the use of such tires. The tested car equipped with the tires needed twice as much time to pass a sprint from 0 to 20mph on snow.
Start from the crossing or slope will depend more on the luck that on the driving skills. Mr. Eppel concluded that one should buy exclusively winter tires and consult with experts instead of choosing the tire by the price. “If You buy cheap tires, You can face sad consequences later.”
Continental recommends to buy real winter tires marked with snowflake symbol and minimal tread depth of 0,15 inches.
Analysts Forecast Growth Of The Michelin’s Profit
The majority of financial analysts forecast growth of the Michelin’s profit after the revival of the international market as well as the growth of sales of premium-class tires in 2010.
According to the statement of the Deutsche Bank (one of the leading German banks) in spite of considerable negative outer influence the leading tire producers appeared to be “very consistent” in 2009. It means that they corrected price formation policy in time, took the advantage of the decrease of raw material cost (in the second half-year) and successfully distributed the production of primary and secondary tires.
The analysts also believe that the sales volume in the following year will considerably increase if to compare with the current extra-low level. It is reported that the Michelin company will have maximum profit, the Pirelli company will be ranked as the second. At the same time the profit of the Continental company will be the least in the segment of the tires that provide only 30% of the company’s revenue.
Current sales of the manufactured tires have been a lot worse than those of new tires that had been previously stored at the stocks of dealers and wholesale sellers. Looking in the future the analysts of the German bank hope that the sales volume of new tires will rise in 2010 by 6 – 8% after the 13 – 15% decrease in 2009. The increase can be even bigger but it still will be lower by 15 – 17% than the rate of 2007.
