MIND THE QUALITY, WIDTH AND COST

There is likely to be sharp intensification of competition between Europe's leading lorry and bus tyre manufacturers in 1999, as attention focuses on manufacturing cost cuts and quality improvements. Manufacturers are reducing their prices, improving their profitability, and closely watching the activities of rivals in the retread industry. As a result, tyre buyers should have more choice and be able to obtain better tyres. This article discusses the forecasts, aims, and policies of two specific manufacturers. Pre-cured tread manufacturer Marangoni Tread expects more direct competition from other manufacturers, but is confident that it will not lose business as a result and might even benefit. If it meets its two targets of reducing cost and improving quality, sales growth will be maintained even in the face of strong competition. Continental is Europe's second largest lorry and bus tyre manufacturer. Encouraged by a return to profitability, it is planning to increase production of commercial vehicle tyres by a third in 1999. Its original-equipment lorry business was up by 25% in 1998, with 2.9M tyres made. Its 1999 target of 3.8M will be achieved by adding shifts and shortening factory shutdowns. It is introducing four new types of tyres, designed to handle various types of on-road and off-road work.