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China's Tire Industry - Kicking Into High Gear PDF Print E-mail
Tuesday, 20 May 2008 05:00

When you are so busy dealing with the day-to-day activities of business, it’s easy to lose sight of the fact that we all operate in a global economy. Our principle concerns are often immediate and local, but when you read the following information about China and its Tire Industry plans, you begin to realise that we need to think globally and we need to start now…

Earlier this year I came across a report from a company out of Europe. They offer market research and data and their stream of press releases had me sitting up and taking notes – here are some of those notes:

--- China’s Tire Industry

The remarkable progress of China’s automotive industry has culminated in the development of a significant tires sub sector. Following China’s accession to the WTO in late 2001, the growth rates for both sectors accelerated.

To fulfill its ambition to become the main base of operations for leading foreign auto companies, it is imperative that China develop a world-class tires industry. In doing so, the country would become more attractive to leading automakers.

Ready access to high quality tires would enable these companies to streamline their supply chains and purchasing operations while avoiding costly tires imports.

--- US$6 Billion in 2002

With an estimated value of nearly US$6 billion in 2002, China’s tires industry is large and poised for further high growth, bolstered by the rising fortunes of automobile manufacturers there. This industry is still largely driven by the multinational tire companies (eg. Michelin, Bridgestone, Goodyear and Yokohama) and their joint-venture partners, with Michelin alone accounting for 30% of the replacement tires market.

Domestic players are relatively less skill-intensive, use simpler production techniques and have somewhat inconsistent quality standards. These domestic tire companies are also financially weak which explains their relatively lower investment in research and development facilities.

--- Fragmented…for now

Although a considerable segment of the tires industry is concentrated in the Jiangsu, Shandong, Shanghai and Shenyang area, the domestic tires industry is still largely scattered across the country. This has resulted in a lack of cooperative synergies.

Foreign multinationals, on the other hand, are more prone to cooperation in areas such as purchasing and research and development activities. For instance, Goodyear tires by purchasing a minor stake in Sumitomo tires, has taken steps to form a strategic alliance with its Japanese counterpart to share their marketing and purchasing operations.

The domestic companies owing to their lower investment in research and development also produced relatively obsolete products. Their production volumes also lagged that of their multinational counterparts.

--- China’s Domestic Tire Output

The average annual tire output of China’s domestic players in 2003 is approximately 410,000, considerably behind the 2.70 million produced by foreign tire companies in China.

To become a leading player in the global tire industry, it is imperative that domestic tire companies rectify these weaknesses by developing more sophisticated production techniques.

China has also taken up steps to produce products that are higher up the value chain. For instance, the country is now encouraging the production of radial tires1 by promising the waiver of the 10% excise tax for radial tire products.

Many domestic companies are also forming strategic alliances with multinationals to acquire greater expertise in production, distribution and marketing.

--- Summary

As you can see, China’s tire market is evolving. Maybe today the Chinese marketplace is not a threat to your business, but historically when China sets its mind to something they usually see it through to conclusion. And if their plans include the eventual manufacture and export of tires, it will ultimately change the tire industry landscape over here in the west.

Definitely something to keep an eye on – wouldn’t you agree?

Sources: Information for this article was drawn from the public Internet and news feeds.

James Burchill - EzineArticles Expert Author

Author: http://www.JamesBurchill.com - James is a freelance writer and consultant.

 
Tire Pressure Issues For Automobiles, Stay Safe America PDF Print E-mail
Sunday, 20 April 2008 20:00

How far along has tire pressure monitoring come recently? Well it is making significant strides in the transportation industries for a variety of reasons; reducing fuel costs, safety and insurance savings, regulations stemming from the Firestone Affair in the SUV market and lobbying from consumer groups. The DOT has looked into these issues for passenger cars and the Tire Industry has had mixed emotions for a reason, often stating that the best thing to do is to educate consumers about tire pressure.

A recent survey during Car Care Aware Week showed that 54% of all cars had one or more tires, which were low on air, thus causing excessive wear, stability issues and poor fuel efficiencies. This was an interesting case in fact. We see this all the time when we service our customers cars. During this same study it was found that only 14% of the cars had one or more tires that needed tread and were worn out. It would behoove those in the car care industry to check tires as a courtesy for customers.

Jiffy Lube and other companies do this already as part of a multi-point check list. We believe that soon all over the road trucks will have some sort of low-pressure indicator either inside the cab or out side. Some already have sensors, which light up on the dash-board and along with GPS navigation which already indicates truck stops and repair stations which have tire shops or Tire chucks with air hoses. Recently we discussed the issues with Large Passenger van rollovers and the NTSB did a huge study showing these vans to be unsafe, yet many of the problems stemmed from low air pressures and poor loading in rear or on top. Once again issues of tires were the biggest. Under rated tires for the load or under inflated tires during the trip which contained the accident were a factor in the event itself.

Some shop owners have asked me why should I get involved with tire pressures because I might be sued (again the issue of our over litigated society, causing friction when you go to help your fellow man or customer?) if I put air in and someone has an accident and they determine that on a dirt road the car had too much air in the tires for that condition, when I put the additional air in because the dad said he was taking his family on a road trip to Colorado or Kansas for four days? I understand this comment and fear from lawsuits and admit that there are too many attorneys in the world, especially here in the States. But as a Car Care Professional you can prevent accidents and help people. This same comment about lawyers is what the tire industry is fearing.

The tire pressure issue was over turned by the NHTSA but expect it to come back stronger next time as consumer groups and politicians judging the wind flow see the political advantage of caving into such demands, which indeed will open the tire industry to more class action lawsuits.

The RMA Rubber Manufacturers Association wants to fight PSI level definitions, because it is not a one size fits all. Many things go into deciding proper inflation and PSI levels depending on such things: snow handling, wet & dry braking, braking & traction requirements, stopping distances, rolling resistance, fuel economy, noise, vibration, harmonics, comfort of ride, uniformity of tread ware, balance, cornering capabilities, , rotation interval specs, endurance ratings, tread ware tests, high speed performance, residual alignment torque, ease of mounting on production equipment, etc. You can see the issues manufacturers have with this. Many times customers will ask you can you check the tires, some shops are saying “no” while this is the best policy for not getting sued it is not good to keep telling customers “No” when:

A.) You can charge them for it and;
B.) They are willing to pay you for it and;
C.) You can make a good profit doing it.

After all with the increased news articles on tire ware and the significance of the firestone media frenzy, tires are on people’s mind more than the ever increasing oil change intervals propaganda from Auto Manufacturers to sell more cars and their particular brand of in house oil. The problem concerning tires has much to do with: ice, snow, rain, mud, highway speed, dirt roads, gravel, canyon driving, off road driving, speed bumps, gas mileage, traction, etc.

The manufacturers are at odds with a government regulatory body dictating their specifications on a tire which may perform many different duties on the same car within it’s life time. Manufacturers of tires are concerned with all these things and those listed above and also have to worry customers which modify vehicles, over load tires, drive monster mudders on freeways causing vibrations, harmonics, warped rotors, bent tie rods, bent steering rods, severe wear to breaking systems, cracked rims which in turn cause excessive ware including scalloped tires, radial separation, increased tire rotation intervals-some 4 X 4’s as little as 3000 miles when usually 6000 is recommended. Not to mention human kidney issues. This offends people and causes stereo’s to buzz and tires to roar into the night. When a recent survey came out on a scale of 1-10 tire noise was rated. Aggressive and dedicated Tire Engineers found that Cadillac, Mercedes, Bentley all scored high in the 7.5 range. Where high performance cars such as the Corvette, Mustang 5.0 and even the little Miata scored down into the 5 to 5.5 range. Stiffer tires gave better over all handling performance, great stopping and good grip, but were noisy.

GM has been offering sensor based tire pressure monitors and ABS for a while on some models and Daimler Chrysler on their Jeeps 2002-2004 models has a safety bulletin for installation of a tire pressure monitor dashboard indicator. When customers were asked in a survey by the TIA – Tire Industry Association;

31% said they check their air pressure regularly,

20% admitted to ignorance when it came to anything to do with tires

40% said their tries are totally safe.

54% had under inflated tires when they were checked

14% had either poor tread left or both.

In fact when the survey was checked against actual behavior in tire monitoring by the customer only 1 in 7 actually checks the tire pressure regularly. So it maybe something to think about when servicing your customer’s car while doing the oil changes.

The DOT and Regulatory bodies want tire manufacturers and tire retail chains to fork over tire data and returns. Data on warranty issues and marketing data of what was sold where. The industry does not want to because it is afraid the information will immediately become public and therefore fall into the hands of competitors. Which I guarnatee is true. You would not believe how competitive the auto industry is, you have to participate to understand, the regulators have never had a real job or run a real company and as well intended as they are they are mere puppets in the game and clueless to a shame. Those fine folks in government and god bless, them, well, they just don"t get it.

But of course Consumer Groups say the competition already has the data because the tire manufacturers share the data with their retailers and wholesalers. Discount Tires, Big O, Les Schwabb, etc. say not so, that their data is much different.

TREAD The Transportation Recall Enhancement, Accountability and Documentation Act is wanting to demand more. This would be the most sweeping legislations since the Highway Act of 1966. Who stands to benefit? Well many after market safety equipment makers of things like seat belts, tire pressure monitor systems, Air-Bags, etc. Which would include some of the top fortune 500 companies and smaller companies with some huge political clout there in the newly upgraded section of “K-Street.” One interesting site to go to is the Consumer Report Tire Facility Testing Site which nearly rivals many of the Major Auto Company R and D or proving grounds. At the NACE Expo there was a lot of talk about tire pressure.

http://www.naceexpo.com

There are many changes coming due to political will, trial lawyer groups, accident rates and industry changes. All of these will affect the Oil Change Industry, which we or my company participates in, because as a retail auto service outlet you will be required to follow similar sweeping new changes in documentation. Great more paper work, just what you need right? Well speaking of paper work did you know that: GPEA – The Government Paper Elimination Act is a total failure. The Sarbanes Oxley Axe has increased paperwork three fold. The GPEA of 1998 has brought about some good changes in the way the government does business, but has lead to the creation of more paperwork for companies thus, more government paperwork. Elliot Spitzer’s Office has caused the early death of almost as many trees as the California Fires, by threatening good companies and cases, which scare little companies into generating more paperwork back-up. The DOT, FDA, CDC, FAA, FCC, EPA, OSHA, FTC, SEC, DOE, etc. and all the other three-letter and lots of Four Letter (word) agencies are requiring more paperwork.

This is affecting every small and medium size businesses ability to compete, because they waste money on things not essential to serving the needs of their customers and you and I, well in my opinion and thinking we all lose as the businesses and as those agencies look to cover their butts. Even if the entire system were to go digital the cost in the collection of the paper work. This means more man-hours, higher manager pay and more training and more CYA. This will mean with regards to tire pressures that if you check the tires you will have to make a notation and then keep a triplicate copy of the information, including a CYA that you told the customer of the issues in the way of a signature.

We are seeing that we are transferring the responsibility to be alert and pay attention to those in business rather than the owner of the car who abuses their equipment and has a friend who is a lawyer? Tire pressures are very important to the over all desires of your customer base and they seem to be on their minds as more and more customers are concerned about tires and the pressure due to the news media. By you paying attention to this you can develop a stronger customer base, greater requency of patronage, more referrals, more consumer confidence and more satisfied customers. You will be putting customers at ease and making them happy.

Lance Winslow - EzineArticles Expert Author

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/

 
Checking Tire Pressure at Your Quick Oil and Lube Facility PDF Print E-mail
Saturday, 19 April 2008 10:01

Why our team checks tire pressure for our customers

How far along has tire pressure monitoring come recently? Well it is making significant strides in the transportation industries for a variety of reasons; reducing fuel costs, safety and insurance savings, regulations stemming from the Firestone Affair in the SUV market and lobbying from consumer groups. The DOT has looked into these issues for passenger cars and the Tire Industry has had mixed emotions for a reason, often stating that the best thing to do is to educate consumers about tire pressure. A recent survey during Car Care Aware Week showed that 54% of all cars had one or more tires, which were low on air, thus causing excessive wear, stability issues and poor fuel efficiencies. This was an interesting case in fact. We see this all the time when we service our customers cars.

http://www.CarWashGuy.com

http://www.OilChangeGuys.com

During this same study it was found that only 14% of the cars had one or more tires that needed tread and were worn out. It would behoove those in the car care industry to check tires as a courtesy for customers. Jiffy Lube and other companies do this already as part of a multi-point check list. We believe that soon all over the road trucks will have some sort of low-pressure indicator either inside the cab or out side. Some already have sensors, which light up on the dash-board and along with GPS navigation which already indicates truck stops and repair stations which have tire shops or Tire chucks with air hoses. Recently we discussed the issues with Large Passenger van rollovers and the NTSB did a huge study showing these vans to be unsafe, yet many of the problems stemmed from low air pressures and poor loading in rear or on top. Once again issues of tires were the biggest. Under rated tires for the load or under inflated tires during the trip which contained the accident were a factor in the event itself. Some shop owners have asked me why should I get involved with tire pressures because I might be sued if I put air in and someone has an accident and they determine that on a dirt road the car had too much air in the tires for that condition, when I put the additional air in because the dad said he was taking his family on a road trip to Colorado or Kansas for four days?

I understand this comment and fear from lawsuits and admit that there are too many attorneys in the world and most should be eliminated forth with. But as a Car Care Professional you can prevent accidents and help people. This same comment about lawyers is what the tire industry is fearing. The tire pressure issue was over turned by the NHTSA but expect it to come back stronger next time as consumer groups and politicians judging the wind flow see the political advantage of caving into such demands, which indeed will open the tire industry to more class action lawsuits. The RMA Rubber Manufacturers Association wants to fight PSI level definitions, because it is not a one size fits all.

Many things go into deciding proper inflation and PSI levels depending on such things: snow handling, wet & dry braking, braking & traction requirements, stopping distances, rolling resistance, fuel economy, noise, vibration, harmonics, comfort of ride, uniformity of tread ware, balance, cornering capabilities, rotation interval specs, endurance ratings, tread ware tests, high speed performance, residual alignment torque, ease of mounting on production equipment, etc. You can see the issues manufacturers have with this. Many times customers will ask you can you check the tires, some shops are saying “no” while this is the best policy for not getting sued it is not good to keep telling customers “No” when: A.) You can charge them for it and; B.) They are willing to pay you for it and; C.) You can make a good profit doing it.

After all with the increased news articles on tire ware and the significance of the firestone media frenzy, tires are on people’s mind more than the ever increasing oil change intervals propaganda from Auto Manufacturers to sell more cars and their particular brand of in house oil. The problem concerning tires has much to do with: ice, snow, rain, mud, highway speed, dirt roads, gravel, canyon driving, off road driving, speed bumps, gas mileage, traction, etc. The manufacturers are at odds with a government regulatory body dictating their specifications on a tire, which may perform many different duties on the same car within its life time.

Manufacturers of tires are concerned with all these things and those listed above and also have to worry customers which modify vehicles, over load tires, drive monster mudders on freeways causing vibrations, harmonics, warped rotors, bent tie rods, bent steering rods, severe wear to breaking systems, cracked rims which in turn cause excessive ware including scalloped tires, radial separation, increased tire rotation intervals-some 4 X 4’s as little as 3000 miles when usually 6000 is recommended. Not to mention human kidney issues. This offends people and causes stereo’s to buzz and tires to roar into the night. When a recent survey came out on a scale of 1-10 tire noise was rated. Aggressive and dedicated Tire Engineers found that Cadillac, Mercedes, Bentley all scored high in the 7.5 range. Where high performance cars such as the Corvette, Mustang 5.0 and even the little Miata scored down into the 5 to 5.5 range.

Stiffer tires gave better over all handling performance, great stopping and good grip, but were noisy. GM has been offering sensor based tire pressure monitors and ABS for a while on some models and Daimler Chrysler on their Jeeps 2002-2004 models has a safety bulletin for installation of a tire pressure monitor dashboard indicator. When customers were asked in a survey by the TIA – Tire Industry Association; 31% said they check their air pressure regularly, 20% admitted to ignorance when it came to anything to do with tires and 40% said their tries are totally safe. But we know that 54% had under inflated tires when they were checked and 14% had either poor tread left or both. In fact when the survey was checked against actual behavior in tire monitoring by the customer only 1 in 7 actually checks the tire pressure regularly. So it maybe something to think about when servicing your customer’s car while doing the oil changes.

Lance Winslow - EzineArticles Expert Author

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/

 
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