Speedco to sell flag brand tires
CAYUGA, Ind.-Speedco Inc., an on-highway truck lube provider that is 87.5-percent owned by Bandag Inc., will begin selling Goodyear, Michelin and Yokohama tires plus Bandag retreads at its 32 stores within the next two years.
Speedco said its stores in Amarillo and El Paso, Texas, and in Atlanta already are offering the products. Bandag bought the majority share in the company in February.
``We are taking the Speedco way of consistent and efficient service and expanding it to tires,'' said Mark Clark, president and CEO. ``We are complementing our lube services with quality tire service and premium tire brands because we know that tire maintenance is a key part of a sound preventive maintenance program.''
The tires will be supplied by dealers in close proximity to the Speedco outlets, the company said. Bandag dealers will supply the retreads.
Speedco's other services include service packages that feature tire examinations to check tread depths, air pressure and proper torquing of wheel fasteners. Individual services such as tire inspection, replacement and repair, air-up services and wheel balances also are offered.
Goodyear to hike prices on all tires
AKRON-Goodyear will raise prices up to 5 percent on all brands of its tires, effective Sept. 1.
Prices will increase on consumer tires by up to 5 percent, by 2 percent on commercial tires, up to 5 percent on farm tires and 3-5 percent on off-the-road tires, Goodyear said.
The increases are in response to rising raw material, energy and transportation costs, according to the Akron-based tire maker.
Many repair shops located in 5 states
BETHESDA, Md.-A full one-third of the nation's independent repair shops and automotive retail establishments call the five largest states home, as do more than one-third of all licensed drivers, the Automotive Aftermarket Industry Association (AAIA) reports.
The concentrations are in California, Texas, New York, Florida and Illinois.
``This concentration of motorists, service establishments and retail stores illustrates the significance of a handful of states in determining national trends,'' said Dan Kaplan, AAIA senior director, market research.
The association presents the data in its 2004/2005 Aftermarket Factbook. The publication also has state-specific data as well as other trends, including data such as the size of aftermarket segments and key economic indicators.
The book is available for $99 for AAIA members and $199 for non-members. For more information, call (301) 654-6664.
Goodyear gets military grant
AKRON-A defense appropriations bill passed recently by Congress will grant Goodyear $2.25 million to fund research and development on the next generation of aircraft tires for Navy and Air Force joint strike fighter jets.
The Akron-based tire maker said the R&D efforts will be directed by its Akron Technical Center.
Goodyear is the world's largest supplier of tires for commercial, military and general aviation aircraft. The company's aircraft tires are manufactured in Danville, Va., Bangkok, Thailand, and Sao Paulo, Brazil.
Goodyear has manufactured products for the U.S. military for 85 years and also works closely with aircraft manufacturers to develop and qualify radial and bias-ply tires for new aircraft.
Plant closing costs Conti $118 million
HANOVER, Germany-Continental A.G. took a $118.7 million charge against first half earnings to cover restructuring costs at its Mayfield, Ky., plant, but said the cost could rise to $144 million before year-end.
Continental Tire North America Inc. announced in early July it intends to cease tire production at the passenger and light truck tire plant in Mayfield by year-end, blaming the decision on high operating costs at the 44-year-old facility.
The tire production phase-out will affect about 715 hourly and 112 salaried workers. Conti will, however, maintain mixing and warehouse operations there, saving about 130 jobs.
The closing cost is almost identical to that estimated earlier by Nicolas Hirth of Morgan Stanley Equity Research Europe.
Despite the restructuring costs, the operating result of the passenger and light truck tires division-which includes the company's North American business-rose slightly to $144.8 million.
Sales in the division rose 8.3 percent to $2.31 billion despite a drop in sales in North America.