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Oct 29, 2008

Tire giant transnational Chinese tire market, increased competition

June 16, with a total investment of 300,000,000 U.S. dollars of Japan's Bridgestone tires big projects settled in Huizhou Digital Industrial Park, Bridgestone has become the production base in China have the largest number of international tire manufacturers, also was among the first in South China The giant tire plant; a week later, on June 23, the first Michelin Chi 200 plus stores opened. Goodyear was not long ago and will move its Asia Pacific headquarters in Shanghai. It is clear that a strong vehicle market bring the cross-matching components businesses set up, but also increased their competitiveness, the Big Three tires have been launched in China Competition.

Large expansion to

Bridgestone as the foundation of the Huizhou plant, Bridgestone is currently in the mainland of China has 4 plants, including factories in Shenyang and Huizhou factory production trucks, buses with all-steel radial tire, Tianjin, Wuxi factory and factory to use by Car, light truck tire. So far, Bridgestone has also become a production base in China have the largest number of international tire manufacturers.

"Bridgestone is the first factory in Huizhou 50, including Hungary has been released by the plant, Bridgestone is currently the Group of 23 countries in the world have 51 production bases." Bridgestone (China) Investment Co., Ltd. of Liu Yang Miss this is the case to the reporters about the Bridgestone.

Bridgestone Huizhou plant into operation after 2009, Bridgestone's four factories in China have been able to reach an annual output of 10,950,000 tires.

Michelin is currently in China, Shenyang and Shanghai, there are two production bases, Michelin (China) Investment Co., Ltd., chairman of the Tsu-Chieh said that so far, Michelin investment in China has reached 400,000,000 U.S. dollars, and Shenyang The two factories in Shanghai each half. He also said: "Now, in the Michelin Shenyang also bought a large piece of land to expand production capacity to meet the needs. Michelin will be based on the needs of the market continue to expand both the size of the production base so that in the medium and long term Michelin has become the world's largest factory. "While the Goodyear headquarters in the United States has re-investment 120,000,000 U.S. dollars (about 1,000,000,000 yuan) for the Dalian plant expansion, production from the current annual capacity of 2,000,000 expanded to 525 10,000, in Goodyear to become Asia's largest factory. However, compared with the former, Goodyear's production base in Dalian, after all, only one. Goodyear, but there is a step towards faster than the other two opponents: Goodyear Tire & Rubber Co., Ltd. and Asia, Greater China regional headquarters from Akron, Ohio moved to the city of Shanghai. At present, moved to the front of the preparatory work is still underway and is expected in the third quarter of this year's Asia-Pacific headquarters will be "immigrants" in Shanghai. In the face of Michelin, Bridgestone this formidable opponent, Robert Siegen very frankly that "We hope to start a global race."

Network Dispute

Bridgestone factory in Huizhou foundation news conference, Bridgestone tires cause of the Chinese chief representative of the macro-cut Oda frankly, Michelin, Goodyear and Bridgestone are both big 3 in the world tire giant, the other 2 in the Chinese market Have a considerable share of Bridgestone are keen competitors. Bridgestone and competitive response is: as far as possible so that products produced closer to the Chinese market demand; II and improve brand awareness; three, continuously strengthen the distribution network and further strengthen the user and retail outlets close to the building.

In fact, the construction of retail outlets has become one of the three giant tire "in the form of competition."

According to Bridgestone (China) Investment Co., Ltd. of Miss Liu Yang, early in June as the Bridgestone Huizhou in the first "Wings of cars," car tire store's official opening date has been opened "car Wings of "33, including the construction of 78. In accordance with the company's plans in China, Bridgestone will open 200 "Wings of car" image of the store, about 20 of them in Guangdong Province (Guangzhou with a capacity 8, currently under construction, including the existing 4). The image of the store sales to account for 30% of the total.

Goodyear and the date has been set up across the country nearly 200 dealers, more than 1,600 Goodyear Tire & Service Center, many stores have been upgraded to high-end image of the Goodyear store - "Golden Eagle store." In the next few years, Goodyear to build more than 100 of the Golden Eagle store.

Compared with Bridgestone and Goodyear, Michelin's image in the shop area of the building appears to be more than fast. From May last year, the first 100 plus Chi has opened shop, a short period of a year, on June 23, Michelin will usher in the first 200 Canadian stores open Chi. China Michelin car and light truck tire replacement market, Director of Sales and Marketing Long-kei said, "Chi added Michelin brand shop to the end of this year will reach 250."

To increase market share

According to the China Rubber Industry Association, up to the latest statistics show that in 2004 the tire industry in the past 10 years to create the best level of development. Total tire production 230,000,000, an increase of 18.7 percent, automobile tires has reached 200,000,000. Industry-wide sales of 70,000,000,000 yuan, up 37.6 percent. China Rubber Industry Association, Ju Hong Zhen predicted that the tire industry in 2005 will still be 8% to 10% growth rate. The tire giant natural to hope that further increase their market share.

At present, Bridgestone, the tire in the small market share in mainland China in more than 10%. As a result, macro-cut Oda said: "The Huizhou plant in operation in January 2007, the company's goal is to Bridgestone's market share in China to 20%."

And the other two tire giant, Michelin has taken the high-end line, and has become a symbol of high-end brands. However, early in April, China's economy for Michelin car tire market high-tech products EnergyXM1. This indicates that the market has always been the main high-end brand of Michelin tires to the popular economy cars out, Lung-chi in a media interview that the company hopes to launch the XM1 as, "Energy" series can be accounted for Michelin tires ( In the Chinese market) share of 75%. It is clear that the introduction of economic car tire is to increase the market share.

Goodyear and the Asia-Pacific headquarters in Shanghai is aimed at two levels: on the one hand, by increasing the number of dealers and increase production to meet the rapid growth of China's auto market demand, on the other hand, an increase in China's raw materials, tires, The purchase of equipment and products. It is reported that by 2010, Goodyear in China's share of procurement from the current 8 million for U.S. growth to 800,000,000 U.S. dollars. In fact, the increase in the amount of procurement is to reduce the cost of procurement of Goodyear's another way of lowering procurement costs and increased competitiveness are the ultimate aim to seize the market.

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