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Tyrepac turns 3 in February- Celebrate with us!

2012-01-31T14:22:00.002+08:00

We turn 3 in February. Best prices we have offered to date for the month of Feb. Stock limited. Look out from 8pm 31st January 2012!

Tyrepac wishes you a great year of the Dragon!

2012-01-20T12:00:00.003+08:00

Delticom publishes preliminary figures for FY 2011

2012-01-20T11:04:00.003+08:00

Hanover, 19 January 2012 – For Delticom (German Securities Code (WKN) 514680, ISIN DE0005146807, stock market symbol DEX), Europe's leading online tyre dealer, 2011 was again a successful year. According to today's preliminary figures, revenues in the fiscal year increased by 14.4% to € 480.0 million and EBIT by 9.6% to € 52.2 million. Earnings per share grew 8.4% to € 2.99.

Q411: Successful quarter despite mild winter The harsh 2010 winter had resulted in a superior business performance for the European tyre trade. Last season, though, the business was hurt by very mild winter weather conditions. At present, industry experts believe that winter tyre sales have dropped substantially below prior-year levels.

After taking the new warehouse into operations in Q211, Delticom stocked up ahead of the season. As a result, the company was able to offer attractive prices to its customers throughout the fourth quarter. Despite the very strong base, Delticom sold more tyres than in Q410. Quarterly revenues increased by 12.1% to € 182.3 million (Q410: € 162.6 million).

While the 2010 winter had seen massive price hikes driven by market-wide scarcities, Q411 prices developed in a more orderly fashion, as expected. Consequently, gross margin (trade margin ex other operating expenses) retracted to a less inflated 28.4% (Q410: 30.6%). The Q411 EBIT margin came in at 13.2% (Q410: 15.2%).

Fiscal year 2011
Revenues. Over the course of the year, selling prices developed favourably, the mix was stable and volumes were fairly satisfactory. All in all, Delticom was able to generate revenues of € 480.0 million, a plus of 14.4% from prior-year's € 419.6 million. Revenues in the E-Commerce division were up year-onyear by 12.9%, from € 403.7 million to € 455.6 million. The revenues of the Wholesale division lifted by 53.4% to € 24.4 million, after prior-year revenues of € 15.9 million.

Gross margin. The cost of goods sold increased in the reporting period by 16.3%, from € 300.1 million in 2010 to € 349.1 million. Delticom generated 2011 a greater share of revenues with own inventories, compared to the previous years. In an environment of rising purchasing prices, the company was therefore able to cushion the hikes by early purchasing to a good extent. Thanks to the increased volume Delticom also benefited from economies of scale in the procurement function. Still, the full-year gross margin came down from 28.5% to 27.3%, primarily due to the closing winter quarter.

Personnel expenses. Thanks to the highly efficient operating workflows, the company has been able to keep staff levels low in 2011 despite increasing transaction volumes. In the reporting period on average 116 staff members were employed at Delticom (previous year: 101). Personnel expenses amounted to € 7.2 million (previous year: € 6.8 million). Compared to the prior-year period, the personnel expenses ratio (staff expenditures as percentage of revenues) came down slightly from 1.6% to 1.5%.

Other operating expenses. Overall the other operating expenses totalled € 77.7 million in the past financial year, an increase of 11.8% over the prior-year value of € 69.5 million.
Among the other operating expenses, transportation costs is the largest line item. It grew in line with the increase in business volume, from € 34.5 million by +8.5% to € 37.5 million. The share of transportation costs against revenues declined from 8.2% in 2010 to 7.8% in 2011. The reason for this was the significant price effect in the revenues for the last financial year. In addition, economies of scale arising from the centralised warehouse infrastructure helped to further drive down costs.

In the reporting period, costs for advertising totalled € 9.9 million, after € 9.0 million in 2010. This represents a marketing expense ratio (marketing expenses as a percentage of revenues) of 2.1%, flat year-on-year.

Depreciation. In line with our gradual warehouse capacity expansion and the parallel investments into warehousing infrastructure, depreciation rose by 62.3% from € 1.3 million in 2010 to € 2.1 million. The low absolute level of depreciation underlines the low capital intensity of Delticom's business.

Earnings performance. EBIT improved from € 47.6 million by 9.6% to € 52.2 million. Due to the extraordinarily margin-strong closing quarter 2010, the management had expected a deterioration of year-on- year profitability for 2011. In the end, the EBIT margin showed only minor decline from 11.3% to 10.9%. The continually low Euro money market rates led to flat financial income of € 0.1 million. This was balanced by almost the same amount of financial expenses arising from provisions as well as interest costs for the short-term utilisation of credit lines.

The expenditure for income taxes was € 16.8 million (previous year: € 15.1 million). The tax rate was 32.2% (2010: 31.6%). Consolidated net income for 2011 grew from € 32.6 million to € 35.4 million. This corresponds to earnings per share (EPS) of € 2.99 (undiluted, 2010: € 2.76), a step-up of 8.4%.

Working capital. From an exceptionally low prior-year base of € 52.2 million which was affected by market-wide shortages, inventories in 2011 increased to € 106.5 million. As of 31.12.2011 this equates to 64.0% of the total assets of € 166.5 million. The company is well positioned for the upcoming summer business. Accounts payable grew at lower rate of 29.0% year-on-year, from € 53.6 million to € 69.1 million. Delticom management intends to continue its policy to pay off a significant part of the liabilities ahead of schedule. Taken together with accounts receivable of € 10.1 million (31.12.2010: € 10.9 million), the net working capital amounted to € 43.6 million at year-end (31.12.2010: € 1.8 million).

Cash flow and liquidity position. Due to more funds being tied up in working capital, the operating cash flow from ordinary business activities was € –9.6 million (2010: € 51.7 million). In 2011 Delticom made investments of € 8.4 million into property, plant and equipment, most of it into the infrastructure of the new warehouse, which was taken into operations in Q2. With a year-end liquidity of € 22.2 million (31.12.2010: € 67.8 million) and access to currently unused credit lines, the company has enough funds to grow the business in the months ahead.

Outlook
Over the preceding months, economists have gradually revised growth estimates for Europe. The general expectation is that austerity measures and rising unemployment is going to depress consumer sentiment further. Industry experts believe that the European tyre trade will not remain unaffected.

Independent of those short-term developments, the share of online sales in the tyre market continues to be comparatively low. More and more drivers are turning to the Internet in search of lower-priced alternatives. Delticom as the leading online tyre dealer will be able to capitalise on this trend. Even for a scenario where market and weather do not improve over 2011, Delticom management regards a revenue growth of 10% as achievable. Assuming margins at prior-year levels, earnings should grow in line with revenues.

The full report for the fiscal year 2011 will be published on 22 March 2012 within the "Investor Relations" section of the website www.delti.com.

Nokian Tyre_Top 3 Seller on Tyrepac

2011-12-19T10:44:00.002+08:00

Tyrepac is Nokian appointed exclusive retailer in Singapore. Nokian brand tyres is now one of the top 3 brand on Tyrepac website. Consider this premium European brand the next time you go for a tyre change. Promotional prices now at http://www.tyrepac.com/

Tyrepac wishes everyone a very Merry Xmas and a Happy New Year!

2011-12-19T10:40:00.001+08:00

the only tyre SALE you have been waiting for is here!

2011-10-03T15:02:00.001+08:00

Delticom AG publishes Semi-Annual Report 2011

2011-08-10T09:59:00.001+08:00

Hanover, 09 August 2011 – Delticom (German Securities Code (WKN) 514680, ISIN
DE0005146807, stock market symbol DEX), Europe's leading online tyre dealer, has published its semi-annual report 2011 today. Revenues in the first six months of 2011 increased by 11.8% to EUR 198.3 million and EBIT by 12.6% to EUR 18.7 million. EBIT margin remains unchanged at 9.4% (H110: 9.4%). Consolidated net income for the period grew from EUR 11.3 million to EUR 12.7 million. This corresponds to earnings per share (EPS) of EUR 1.08 (undiluted, H110:EUR 0.95), a step-up of 13.0%. For 2011, Delticom AG’s management continues to anticipate an increase in revenues of approximately 10%, with an EBIT margin around one percent lower than in 2010.

The complete report for the first six months of 2011 can be downloaded from the website www.delti.com within the "Investor Relations" area.

Company profile:
Delticom, Europe's leading online tyre retailer, was founded in Hanover in 1999. With more than 100 online shops in 40 countries, the company offers its private and business customers an unequalled assortment of excellently priced car tyres, motorcycle tyres, bicycle tyres, truck tyres, bus tyres, special tyres, rims, complete wheels (pre-mounted tyres on rims), selected replacement car parts and
accessories, motor oil and batteries. The independent website reifentest.com contains impartial information about tyre tests and helps the customers choose from more than 100 tyre brands and more than 25,000 tyre models. Delticom delivers either directly to the customer's home address, or to one of more than 28,000 service partners – affiliated garages which take delivery of tyres and then install these
on the customer's vehicle. Delticom's Wholesale division also sells tyres to wholesalers domestically and abroad.

On the Internet at: www.delti.com
Selected online shops: www.reifendirekt.de, www.123pneus.fr, www.mytyres.co.uk, www.reifendirekt.ch

Contact:
Melanie Gereke
Brühlstraße 11
30169 Hannover
Tel.: +49 (0)511-936 34-8903
Fax: +49 (0)89-208081147
Email: melanie.gereke@delti.com

Nokian Tyres Singapore - Exclusively at Tyrepac.com

2011-08-05T12:00:00.002+08:00

TYREPAC launches Nokian tyres in Singapore

2011-08-04T14:54:00.002+08:00

Singapore, 4 August 2011 – Tyrepac has announced that they will be the exclusive dealer for the premium Nokian brand tyres in Singapore. The deal will see Tyrepac retail the tyres exclusively online on www.tyrepac.com.sg.

Tyrepac will further promote Nokian tyres via a variety of marketing campaigns. The deal also enhances Tyrepac’s policy of offering a wider variety of options to their customers, with a total of 18 brand offerings for their Singaporean customers.

Nokian Tyres is one of Europe’s premium tyre brands, known worldwide especially for their winter range tyres. Originating from Finland, Nokian has consistently been in the forefront of tyre technology- in particular “Polished Grooves” for optimized water dispersion, “Information Field” indicating tyre wear at a glance, “Aquaplanning Indicator” with wear rate indication, and “Cool Silica” for lowering tyre rolling resistance.

“We are delighted and honoured to have secured Nokian’s endorsement,” said Tyrepac Managing Director, Ler Hwee Tiong. “The brand perfectly complements our existing portfolio of premium products for our customers and will be available for order exclusively on our website.”

Customers will then be able to fit their Nokian tyres at any of Tyrepac’s network of over 50 fitting locations across Singapore.

“We are excited for Tyrepac to be our exclusive distributor in Singapore with their strong online platform,” said Nokian Tyres Asian Regional Manager, Oey Pekka. “This agreement will also help Nokian Tyres reach new audiences and expand awareness of the Nokian brand in Singapore, and subsequently Asia.”

About Tyrepac
Tyrepac was founded in Singapore in 2008, and is Asia's first and largest online tyre retailing website. Tyrepac offers a comprehensive range of tyres, with transparent pricing, and convenience from more than 2,700 fitting locations in Asia. Tyrepac also provide quotations for battery, automotive insurance, and servicing packages in collaboration with its service partners.

As of December 2010, Delticom AG invested into Tyrepac. Delticom is Europe’s #1 online tyre retailer. Founded in 1999, the Hanover based company operates more than 100 online shops in 39 countries and has served more than 4 million customers so far. Delticom is listed on the German Stock Exchange
(ISIN DE0005146807, ticker symbol DEX). As of the end of March 2011, market capitalisation stands at approximately EUR 755 million (approx. SGD 1,360 million). For more information, visit www.tyrepac.com.

About Nokian Tyres
Nokian Tyres is the only tyre manufacturer in the world that focuses on products and services that facilitate safe transportation in Nordic conditions. The company's innovative passenger car, van and heavy-duty machinery tyres are mainly marketed in areas that have snow, forest and changing seasons that make driving conditions demanding.

For over 75 years, the company has been developing, testing and patenting solutions that promote driving safety. The world's first winter tyre was created to tackle the freezing temperatures and winds in 1934. Since then, top-range products refined with northern know-how have been introduced on a regular basis.

Respect for the environment is one of the fundamental values of Nokian Tyres. The company has systematically worked towards minimising environmental hazards. Nokian Tyres was the first tyre manufacturer to switch over to using only purified, low-aromatic oils in its production. Raw material and material choices are aimed at avoiding unnecessary burdens on the environment.

Nokian Tyres owns the Vianor tyre chain that comprises more than 770 stores in 20 countries. The company's net sales for 2010 totalled approximately EUR 1 058 million, and it had 3,500 employees. Nokian Tyres Plc's shares are quoted on the Helsinki Exchanges' NASDAQ OMX. For more information, see www.nokiantyres.com

Nokian H - Available at Tyrepac.com

2011-08-03T12:00:00.003+08:00

Nokian H and Nokian V both utilise the same highly developed new pattern design. The greatest differences are in the rubber compounds and the structure. Both tyres have been optimised to function in the best possible way in their own speed categories.

Lower fuel consumption
Nokian H tyre’s Nokian Cool silica compounds reduce fuel consumption.

Excellent wet grip
The Nokian H tyre’s asymmetrical tread pattern guarantees excellent wet grip and stability. Narrow, oriented grooves and special water guides efficiently remove water from the contact surface. The splashstopper improves traffic safety by reducing splashing to the windshield and sides of the car.

Properties:

Excellent wet grip and stability

Prevent effectively aquaplaning

The splashstopper improves traffic safety

Low rolling resistance

Innovations:

Nokian Cool Silica

Polished grooves

Wedge cap construction

Inside - outside design (summer)

Driving safety and aquaplaning indicator

Information Field

The Rim Guard

Mudstopper

Nokian V - Available at Tyrepac.com

2011-08-01T12:00:00.001+08:00

Nokian H and Nokian V both utilise the same highly developed new pattern design. The greatest differences are in the rubber compounds and the structure. Both tyres have been optimised to function in the best possible way in their own speed categories.

Tyre for higher speed

The structure of the higher speed category Nokian V is more rigid, thus making it a sportier product. New innovations and technical solutions improve the driving safety and durability.

Prevent aquaplaning effectively

New technical innovations efficiently prevent aquaplaning. The function of the inner shoulder rainwater system is based on the brook-to-river principle. Narrow, oriented grooves and special water guides efficiently remove water from the contact surface. New wear indicator warns of the risk of aquaplaning.

Quiet driving experience

The platforms and cavities in the longitudinal grooves affect the flow of air and prevent an unpleasant, whistling noise. Reduction of impact and road noise has been emphasised in the dimensioning of the frame structure and material selections.

Innovations:

Nokian Cool Silica

Polished grooves

Wedge cap construction

Inside - outside design (summer)

Driving safety and aquaplaning indicator

Information Field

The Rim Guard

Nokian Z G2 - Available at Tyrepac.com

2011-07-29T12:03:00.007+08:00

The Nokian Z G2 is designed for sporty cars and fast driving and belongs to the UHP category, the top class of passenger car tyres.

Nanotechnology and multi-layer structure: precise driving response

The Nokian Z G2 is targeted at demanding consumers, and its top-of-the-range performance has been achieved with the help of the latest development and production technology.

The main innovations utilised in the tyre – the multilayered tread construction, the nano-silica compound and the new tread geometry – form the Nokian Cool Zone Concept, which improves driving stability, handling, wet grip and durability. In addition, it considerably reduces the tyre’s noise level, rolling resistance and heat generation.

The outer layer of the Nokian Z G2 features a new silica compound, Nokian Cool UHP Silica, which ensures excellent wet grip in all temperatures. The new compound also efficiently dampens noise generated when driving on asphalt – the tyre is quiet and pleasant to drive.

New tyre geometry: excellent handling properties

The revamped tread design of the Nokian Z G2 enhances driving stability, especially on corners, when changing lanes and dodging. It makes the Nokian Z G2 safe and precise to handle, even in extreme situations.

In terms of appearance, the Nokian Z G2 has an asymmetric inside-outside tread pattern. The open centre tread design has proven to be the best technical solution, especially in high-speed tyres.

More safety, carefree and comfortable driving

The Driving Safety Indicator (DSI) on the centre rib indicates the depth of the main grooves. Safe driving in the rain requires good tyre condition. The main grooves must be at least 4 mm deep in order to be able to avoid aquaplaning.

The sidewall has an info field for pressure recommendations. The correct tyre pressure improves car handling, and reduces tyre damage and fuel consumption.

The Nokian Z G2 is completely free of any harmful high-aromatic oils. Like all products manufactured in Nokian Tyres’ plants, the Nokian Z G2 is made using purified oils and with minimal environmental impacts.

Properties:

Stable, precise and quiet

Retains its driving properties in extreme situations

Excellent wet grip at all temperatures

Innovations:

Nokian Cool UHP Silica

Nokian Cool Zone Concept

Purified oils

Polished grooves

Inside - outside design (summer)

Quattrotread

Driving safety and aquaplaning indicator

Information Field

The Rim Guard

Single Wire Bead structure

Mudstopper

Run flat/Flat Run property (optional)

Nokian Tyres - Coming EXCLUSIVELY to TYREPAC!

2011-07-07T14:15:00.007+08:00

TYREPAC aids causes of YMCA Singapore

2011-07-01T00:00:00.001+08:00

Singapore, 1 July 2011 – Tyrepac has announced that they will begin fund raising for the YMCA of Singapore, aiding YMCA’s efforts to help the community through their wide range of programmes. Tyrepac will donate $1 from every tyre sold on Tyrepac Singapore’s website (www.tyrepac.com.sg) to the volunteer welfare organization.

Tyrepac will further assist YMCA by broadcasting upcoming fund raising efforts and events on the Tyrepac website. The sponsorship marks the first time an online retail website is dedicating proceeds to YMCA in Singapore.

“We are proud to be able to do our part for the community by sponsoring YMCA for its cause.” said Tyrepac Managing Director, Ler Hwee Tiong. “With Tyrepac gaining momentum in Singapore, we are pleased to dedicate time and effort to support YMCA in its cause, and hope our effort will also entice more companies to follow suit.”

“We commend Tyrepac for their innovative approach to corporate social responsibility and donating to the YMCA of Singapore. By contributing a part of their profits to supporting the YMCA-Lim Kim San Volunteers Programme, they are allowing their customers to be part of the giving process too,” said YMCA General Secretary Albert L H Ching.

For more information about the YMCA of Singapore or to make a donation, please go to http://ymca.org.sg/appeal or visit the YMCA website at http://www.ymca.org.sg

About Tyrepac
Tyrepac was founded in Singapore in 2008, and is Asia's first and largest online tyre retailing website. Tyrepac offers a comprehensive range of tyres, with transparent pricing, and convenience from more than 2,700 fitting locations in Asia. Tyrepac also provide quotations for battery, automotive insurance, and servicing packages in collaboration with its service partners.

As of December 2010, Delticom AG invested into Tyrepac. Delticom is Europe’s #1 online tyre retailer. Founded in 1999, the Hanover based company operates more than 100 online shops in 39 countries and has served more than 4 million customers so far. Delticom is listed on the German Stock Exchange(ISIN DE0005146807, ticker symbol DEX). As of the end of March 2011, market capitalisation stands at approximately EUR 755 million (approx. SGD 1,360 million).

About YMCA of Singapore
YMCA of Singapore is a voluntary welfare organisation which seeks to serve all members of the community, regardless of race, language or religion through wholesome programmes which are based on Christian principles. YMCA organises 17 structured and sustained YMCA-Tan Chin Tuan Community Service Programmes to enrich the lives of the beneficiaries from 26 partnering voluntary welfare organisations. The beneficiaries include the intellectually, physically and mentally challenged, abused children and underprivileged children, out-of-school youth, youth-at-risk, the poor and the elderly.

Some of the other programmes include the YMCA-Lim Kim San Volunteers Programme, overseas community service programmes, rebuilding programmes for disaster-hit communities and YMCA Financial Assistance & Capability for Employment Scheme. YMCA was conferred the 2008 Outstanding Non-Profit Organisation Award by the National Volunteer & Philanthropy Centre on 13 November 2008. The organisation also owns various social enterprises, such as the YMCA International House, YMCA Child Development and Student Care Centres, YMCA School and YMCA Tertiary Education. www.ymca.org.sg

Win FREE tickets to Formula Drift Singapore 2011!

2011-05-23T14:35:00.009+08:00

The fourth edition of the VIP Formula Drift Singapore Presented by Achilles Radial returns on 11 and 12 June 2011 at the iconic F1 Pit Building. Tyrepac has been a fervent supporter of Formula Drift Asia, and this year is no different with Tyrepac the Official Online Portal for Formula Drift Singapore 2011.

In addition to showcasing the region’s top drivers, this year’s event aims to elevate the spectators’ experience with an exciting mix of the best drifting action and entertainment. Organised by ESPN STAR Sports Events Management (ESS) with the support of Title Sponsor VIP Luxury Inc, Formula Drift fans can expect more than just a motoring spectacle with an exciting line-up of musical artistes, promising to keep everyone’s engines revving late into the night.

The Rock the Rabbit – Festival will also kick off with a casting call for all prospective VIP magazine Bunnies, as well as a VIP fashion show, amidst a colourful, activity lined festival grounds. Standup comedian Kumar adds humour to this event too. The festival will also include a special VIP access only art gallery dedicated to the decades of legendary Playboy Magazine Covers, as well as famous interviews with celebrities. VIP guests will have access to the Mansion Hospitality Suites, getting the full VIP treatment serving aphrodisiac food and drinks.

The Singapore event is the first of a four-leg series for Achilles Asian Drift Series which will be followed by events in Indonesia in October, Thailand in November and the year-end Grand Finale this December in Malaysia.

Tyrepac has teamed up with GT Radial in an EXCLUSIVE competition - the first 15 customers who purchase a set of 4 GT Radial tyres from Tyrepac's website during the period 23rd May to 7th June 2011 is entitled to a pair of walkabout tickets to Formula Drift Singapore 2011 worth SGD60.00.

* Terms & Conditions apply.

For more details, visit the Tyrepac website and purchase your GT Radial tyres today!

Delticom AG: Annual General Meeting approves dividend increase

2011-05-04T09:47:00.001+08:00

Hanover, 3 May 2011 – SDAX-listed Delticom AG (German Securities Code WKN 514680, ISIN DE0005146807, stock market symbol DEX), Europe's leading Internet tyre retailer, is distributing a dividend of EUR 2.72 per share for the 2010 financial year (previous year: EUR 1.70).

68.11% of the share capital was present at the General Meeting of Europe's leading Internet tyre retailer. Shareholders approved all the items on the agenda with a large majority. For the fiscal year 2010 the shareholders will receive a dividend payment of EUR 2.72 per share. With a dividend increase of 60%, Delticom AG continues its dividend policy to let the shareholders participate in the company's success.

Shareholders present at the AGM particularly appreciated Delticom's strong market position and the payout to shareholders. "For more than a decade, Delticom has been primarily distinguished by a high degree of continuity. We have grown revenue and earnings year by year since we were founded”, commented CEO Rainer Binder as part of his Management Board speech. "But last year again exceeded all expectations."

The successful first quarter of 2011 was also highlighted during the Annual General meeting. The full report for the first quarter of 2011 will be published by Delticom AG on 10 May 2011 on its website www.delti.com within the "Investor Relations" section.

Company Profile:
Delticom, Europe's leading online tyre retailer, was founded in Hanover in 1999. With more than 100 online shops in 39 countries, the company offers its private and business ustomers an unequalled assortment of excellently priced car tyres, motorcycle tyres, bicycle tyres, truck tyres, bus tyres, special tyres, rims, complete wheels (premounted tyres on rims), selected replacement car parts and accessories, motor oil and batteries. The independent website reifentest.com contains impartial information about tyre tests and helps the customers choose from more than 100 tyre brands and more than 25,000 tyre models. Delticom delivers either directly to the customer's home address, or to one of more than 28,000 service partners – affiliated garages which take delivery of tyres and then install these on the customer's vehicle. Delticom's Wholesale division also sells tyres to wholesalers
domestically and abroad.

On the Internet at: www.delti.com
Selected online shops: www.reifendirekt.de, www.123pneus.fr, www.mytyres.co.uk,
www.reifendirekt.ch

Contact:
Delticom AG Investor Relations
Melanie Gereke
Brühlstraße 11
30169 Hanover
Phone: +49 (0)511-936 34-8903
Fax: +49 (0)89-208081147
e-mail: melanie.gereke@delti.com

Delticom AG: Q1 2011 on track

2011-04-19T14:08:00.001+08:00

Hanover, 19 April 2011 – Delticom (German Securities Code (WKN) 514680, ISIN DE0005146807, stock market symbol DEX), Europe's leading online tyre dealer, looks back on another successful quarter. According to todays preliminary figures, revenues in the first quarter of 2011 increased by 14.6% to € 85.4 million and EBIT by 4.6% to € 6.1 million. EBIT margin decreased to 7.2% (Q110: 7.9%). Earnings per share grew 4.8% to € 0.35.

Due to a lower amount of snowfall this winter, sales were initially weaker than in the previous year. On top of this, Easter does not fall until the second half of April this year; traditionally, many drivers change to their summer tyres before this holiday. Last year, business in March was able to benefit from this effect, whereas this year will see relatively more summer tyre sales happen in the second quarter. However,demand did not gather significant momentum until springlike temperatures took hold in March.

Revenues. In spite of of the previous year's basis, Delticom was able to generate revenues of € 85.4 million, a plus of 14.6% from prior-year's € 74.5 million. Revenues in the E-Commerce division were up year-on-year by 13.9%, from € 70.7 million to € 80.5 million. The revenues of the Wholesale division lifted by 28.6% to € 4.8 million, after prior-year revenues of € 3.7 million. Other operating income increased in Q111 by 3.1% to € 1.3 million (previous year: € 1.3 million).

Gross profit. The cost of sales increased in the reporting period by 15.0%, from € 54.8 million in 2010 to € 63.0 million. In an environment of rising purchasing prices and further supply bottlenecks, Delticom was to a good extent able to cushion the hikes by purchasing early. As a result, the gross profit advanced in the reporting period by 13.0% year-on-year, from € 21.0 million to € 23.7 million. The gross profit margin (gross profit in relation to total income) decreased from 27.7% to 27.3%.

Personnel expenses. In the reporting period on average 108 staff members were employed at Delticom (Q110: 94). Personnel expenses amounted to € 1.7 million (previous year: € 1.6 million). Compared to the prior-year period, the personnel expenses ratio (staff expenditures as percentage of revenues) remained almost unchanged (2.0%, Q110: 2.1%).

Other operating expenses. Overall the other operating expenses totalled € 15.4 million in the past quarter, an increase of € 2.2 million or 16.7% over the prior-year value of € 13.2 million.

Among the other operating expenses, transportation costs is the largest line item. Tyres sold online are picked up at the delivery points by parcel services which then transport the tyres to the customers or fitting stations. As business volume increases, so too do these transportation costs, from € 6.4 million by 5.8% to € 6.8 million. The share of transportation costs against revenues decreased from 8.6% in Q110 to 7.9% in Q111, partly driven by relatively stronger revenue growth coming from higher selling prices.

Marketing expenses amounted to € 2.0 million, after € 1.7 million in Q110. Although this represents an increase of 17.0%, the relationship to revenues remained on a level with last year, with a share of 2.3%.

Depreciation. In line with the gradual expansion of warehouse capacity and the parallel investments into warehousing infrastructure, scheduled depreciation rose by 24.6% from € 0.3 million in Q110 to € 0.4 million. The low absolute level of depreciation underlines the low capital intensity of Delticom's business.

Earnings performance. Although EBIT had risen steeply in the first quarter of last year (+122.3%), EBIT for Q111 saw a year-on-year increase once again, by 4.6% to € 6.1 million (Q110: € 5.9 million). This translated to an EBIT margin of 7.2% (Q110: 7.9%).

The continually low Euro money market rates led to a poor financial result of € 39 thousand (Q110: € 26 thousand). The expenditure for income taxes was € 2.0 million (previous year: € 1.9 million). The tax rate of 32.2% was almost flat at the previous year's level.

Consolidated net income for the period grew from € 4.0 million to € 4.2 million. This corresponds to earnings per share (EPS) of € 0.35 (undiluted, Q110: € 0.34), a step-up of 4.8%.

Cash flow and liquidity position. Following the reversal of year-end effects and the scheduled buildup of stock levels to € 83.3 million (31.12.2010: € 51.7 million), net working capital increased to € 23.7 million (31.12.2010: € 1.3 million). As a consequence, cash flow from ordinary business activities (operating cash flow) for the period under review came in lower than last year, at € –18.5 million (Q110: € 4.7 million). Delticom's reporting-date liquidity amounted to € 47.5 million; it was slightly higher than in the previous year (31.03.2010: € 45.0 million).

Frank Schuhardt (CFO) is satisfied with the progress of business so far: “The success seen in the equivalent quarter of last year placed the bar very high. So of course that makes me all the more pleased to see that Delticom has managed to once again increase revenues and its result. We’re absolutely on track.” For 2011, Delticom AG’s management continues to anticipate an increase in revenues of approximately 10%, with an EBIT margin around one percent lower than in 2010.

The full report for the first quarter of 2011 will be published by Delticom AG on 10 May 2011 on its website www.delti.com within the "Investor Relations" section.

Tyrepac expands local network of fitting locations

2011-04-14T10:23:00.000+08:00

Tyrepac has announced that with the addition of the latest fitting location, they now have in excess of fifty fitting locations, giving Tyrepac the most extensive network of locations in Singapore.

Tyrepac launched more than two years ago with sixteen fitting locations in Singapore, is targeting an even bigger network of fitting locations to further enhance convenience for consumers.

“We are delighted to provide our customers with a wider selection of fitting locations, making it more convenient for them to find one closer to their home or office.” said Tyrepac Managing Director, Ler Hwee Tiong. “Tyrepac goes through an extensive selection process, visiting each location and inspecting their facilities before adding them to our network.”

In addition to the new fitting locations, Tyrepac has also introduced improved features such as “Tyrepac Recommended” locations, reviews & ratings by customers of these locations, and detailed services provided by these locations.

“Tyrepac has always placed our customers first, and the feedback and opinions we receive is invaluable.” added Ler. “The reviews will be extremely helpful for customers in deciding which location to select.”

“As always, we are always looking to enhance the website with more customer interaction.” said Linus Koh, Tyrepac Webmaster. “Users can expect more changes as we seek to provide the best platform for our customers to shop for tyres online.”

About TyrepacTyrepac was founded in Singapore in 2008, and is Asia's first and largest online tyre retailing website. Tyrepac offers a comprehensive range of tyres, with transparent pricing, and convenience from more than 2,700 fitting locations in Asia. Tyrepac also provide quotations for battery, automotive insurance, and servicing packages in collaboration with its service partners.

As of December 2010, Delticom AG invested into Tyrepac. Delticom is Europe’s #1 online tyre retailer. Founded in 1999, the Hanover based company operates more than 100 online shops in 39 countries and has served more than 4 million customers so far. Delticom is listed on the German Stock Exchange (ISIN DE0005146807, ticker symbol DEX). As of the end of March 2011, market capitalisation stands at approximately EUR 755 million (approx. SGD 1,360 million).

Goodyear introduces the Eagle F1 Asymmetric 2

2011-04-07T14:55:00.006+08:00

Goodyear is proud to introduce the Eagle F1 Asymmetric 2 with revolutionary ActiveBraking Technology, which answers the most pressing needs of consumers of Ultra High Performance (UHP) tyres: greatly improved stopping distances when they need it most.

The Eagle F1 Asymmetric 2 is the latest in Goodyear's Ultra High Performance summer tyre line-up. It is a tyre that is designed to exceed the high expectations set by outstanding success of its predecessor, the Goodyear Eagle F1 Asymmetric.

The ActiveBraking Technology in the new Eagle F1 Asymmetric 2 increases road contact during braking, thereby delivering significantly shorter braking distances on both dry and wet roads - proof of Goodyear's continued commitment and efforts to improving road safety.

The tyre also performed well in dry braking and handling tests, stopping 2 meters shorter than the average performance of the three leading competitors. On dry roads, the competitors tested were still travelling at an average speed of 22km/h while the Goodyear Eagle F1 had already come to a stop. The TÜV SÜD Automotive test also confirmed that the Eagle F1 Asymmetric 2 delivers top-class rolling resistance in its category, with a 7% better rolling resistance.

Better prepared for the unexpected - with ActiveBraking Technology.
Building on the success of its predecessor, the new Eagle F1 Asymmetric 2 with ActiveBraking Technology, crossed plies carcass structure and ‘high surface' silica tread compound sets new standards in dry and wet performance, handling and braking in the ultra-high performance tyre segment.

Asymmetric 2 increases the road contact patch of the tyre during braking. While conventional tyre blocks show little or no transformation during braking, the blocks in the Eagle F1 Asymmetric 2 due to their specially designed shape, develop more surface under braking load and therefore increase the tyre-to-surface contact area. The larger contact patch offers increased grip, which in turn leads to shorter stopping distances.

Improved dry performance: handling and steering precision with exceptional braking capacities.
The new Eagle F1 Asymmetric 2 features a crossed plies carcass structure, which contributes to increased torsion stiffness for improved steering precision, handling and braking on dry road surfaces. The new tread compound, containing very high levels of a new Silica grade delivers superior grip levels leading to further gains in dry handling and dry braking performances.

The lower tyre weight also contributes to better dry handling, as the vehicle's unsprung mass is reduced, enabling the tyre to follow the surface contours more closely.

Short braking on wet
On top of the ActiveBraking Technology, the new tread compound, using a unique blend of high molecular weight polymers, a very high silica content and race traction resin bring increased levels of adhesion on wet road surfaces.
Reduced fuel consumption and CO2 emissions.
The new Eagle F1 Asymmetric 2 also features Goodyear's renowned FuelSaving Technology, which ensures reduced fuel consumption and CO2 emissions.

Three areas have been subject to Goodyear engineers' attention:
- A minimized tyre weight with less rubber and an optimized tyre construction for reduced heat generation and rolling resistance;
- A new ‘high surface' silica grade that contributes to reduced heat generation;
- An aerodynamic sidewall design, which delivers significantly lower aerodynamic drag further minimizing energy loss, especially at higher speeds.

Lower noise emission levels
The Eagle F1 Asymmetric 2 offers a smooth and quiet ride. The tyre's optimized block design and optimized 4 Pitches Sequence with 64 blocks on the outside and 72 blocks on the inside help reduce noise output levels.

Better mileage
The tyre's computer optimized cavity shape and tread stiffness result in uniform pressure and stiffness distribution across the footprint, resulting in better mileage levels.

Wide range of sizes available
The Goodyear Eagle F1 Asymmetric 2 is available in 29 popular sizes:

235/50R18 XL 101 Y

215/45R17 87 Y
215/45R17 XL 91 Y
225/45R17 91 Y
225/45R17 XL 94 Y
235/45R17 94 Y
235/45R17 XL 97 Y
235/45R18 XL 98 Y
255/45R18 XL 103 Y

245/40R17 91 Y
245/40R17 XL 95 Y
225/40R18 88 Y
225/40R18 XL 92 Y
235/40R18 XL 95 Y
245/40R18 93 Y

245/40R18 XL 97 Y
255/40R18 95 Y
255/40R19 XL 100 Y

245/35R18 XL 92 Y
255/35R18 XL 94 Y
265/35R18 XL 97 Y
225/35R19 XL 88 Y
235/35R19 XL 91 Y
245/35R19 XL 93 Y
255/35R19 XL 96 Y
285/35R18 97 Y

255/30R19 XL 91 Y
265/30R19 XL 93 Y
275/30R19 XL 96 Y

In 2012, an additional 21 sizes will be added to the size line-up.

Stay tuned for updates when the Goodyear Eagle F1 Asymmetric 2 arrives in Singapore!

Delticom-Report “Tyres Online 2011”: Internet Tyre Purchase Becoming More Popular

2011-04-05T17:06:00.001+08:00

HANOVER, Germany--(BUSINESS WIRE)-- Approximately 40 percent of motorists in Germany want to buy their tyres on the internet. A current representative Forsa survey commissioned by Delticom, the European market leader in internet tyre sales, shines a light on the attitudes and behaviour of German motorists regarding buying tyres online. A total of 1,000 potential tyre purchasers age 18 to 65 were polled.

The interest of German motorists for ordering tyres on the internet has increased significantly: In 2010 it was 32 percent and overall this year it's approximately 10 percent more. 79 percent of respondents are convinced of the advantages of buying tyres on the internet: free and easy access to helpful and useful information, including test results. 72 percent of consumers appreciate saving time by shopping on the internet. What’s important for 67 percent of motorists is the greater selection of tyres and for 63 percent it is safety certificates such as the TÜV’s "S@fer-Shopping" quality seal. “We can only confirm this positive development. Last year solely approximately one million new customers ordered their tyres from our online tyre shops. In Germany it’s primarily our services at ReifenDirekt.de, the winner of multiple awards for tyre shops on the web, that receive high marks and recognition,” reports Rainer Binder, CEO of Delticom AG (FWB:DEX.f - News)(GER:DEX.de - News).

As shown by the current “Delticom-Report”, at just under 50 percent younger surfers age 18 to 19 in particular are the trailblazers of purchasing tyres online. Currently people age 50 to 65 still have a more reluctant attitude towards buying tyres on the internet. All the same, 30 percent of respondents in this age group would still order their tyres on the web.

On the road with summer tyres: good, but room for improvement
“German motorists are not only more open to purchasing tyres on the internet. Driver safety is also playing an increasingly bigger role. The results of our survey clearly show this,” says Rainer Binder. The great majority, 88 percent, change from winter to summer tyres and vice versa.

However, the time for changing to new summer tyres has the potential for optimisation. The purchase of new ones is primarily dependent on TÜV inspections: 83 percent of motorists buy new summer tyres when their old tyres fail inspection. 26 percent of motorists replace them only after they have fallen below the legally prescribed thread depth of 1.6 millimetres.

Internet convinces with inexpensive tyre offerings
Germany’s motorists are increasingly paying attention to the price when purchasing tyres. Men in particular appreciate the consumer-friendly terms of tyres being offered on the internet: When making their purchasing decision the price is the deciding factor for 95 percent – eleven percent more than in 2010. At 87 percent most women value free information and test results as well as time savings (77 percent).

Clever motorists in particular will find what they are looking for at Delticom. According to customer statements tyres at ReifenDirekt.de are often 20 to 25 percent less expensive compared to other shopping venues. The leading tyre dealer Delticom also provides its customers a selection of 100 tyre brands and more than 25,000 tyre models at over 121 online shops in 39 countries. At the online shops customers can shop for summer, winter or all-season tyres any time they want. In addition, the international and independent Reifentest.com testing platform provides access to current tyre tests conducted by tyre purchasers in everyday situations. ADAC members also receive a three percent discount on car and complete wheel sets.

Information about the company: delti.com
Online tyre shop in Germany: ReifenDirekt.de

Delticom publishes Annual Report 2010

2011-03-23T15:25:00.002+08:00

Hanover, 23 March 2011 – For Delticom (German Securities Code (WKN) 514680, ISIN DE0005146807, stock market symbol DEX), Europe's leading online tyre dealer, 2010 was an extremely successful year. According to the annual report released today, revenues in the fiscal year increased by 34.8% to EUR 419.6 million and EBIT by 60.1% to EUR 47.1 million. With an EBIT margin of 11.2% the profitability has improved once again. Earnings per share grew 59.4% to EUR 2.72. As in previous years, the Management Board and the Supervisory Board will propose to fully distribute the net income to shareholders.

Q410: Scarce supply, high prices.
The prime reason for the positive business development was the unusually favourable winter weather in the closing quarter. Heavy snowfalls caused serious traffic delays, especially in countries where the winter is usually quite mild. The surge in demand was intensified by new regulations in Germany, making winter tyres mandatory. At the same time tyre supply fell substantially short of demand, because tyre manufactures had ramped up their production only relatively late in the aftermath of the recession. As a result, winter tyre prices increased starkly across Europe, driven by market-wide scarcity. In the closing quarter, revenues climbed owing to positive volume and price effects to EUR 162.6 million – a plus of 48.2% year-on-year over previous year's value of EUR 109.7 million.
As a result, the EBIT margin in Q410 was with 15.0% again higher than in the already very successful prior-year period (Q409: 13.4%). We expect that the built-in advantages of our business model could very well fall in line with favourable weather and supportive regulations in the future as well. It is clear, though, that those factors will not necessarily always build-up in our favour as in 2010.

Fiscal year 2010
Revenues. Over the course of the year, selling price levels developed favourably, the mix was stable and volumes developed well. All in all, Delticom was able to generate revenues of EUR 419.6 million, a plus of 34.8% from prior-year's EUR 311.3 million. Revenues in the E-Commerce division were up year-on-year by 36.2%, from EUR 296.5 million to EUR 403.7 million. The revenues of the Wholesale division lifted by 7.6% to EUR 15.9 million, after prior-year revenues of EUR 14.8 million. Other operating income increased in 2010 in line with revenues by 33.3% to EUR 5.8 million (previous year: EUR 4.3 million).

Gross profit. The cost of sales increased in the reporting period by 33.2%, from EUR 225.8 million in 2009 to EUR 300.7 million. In an environment of rising purchasing prices, Delticom was to a good extent able to cushion the hikes by early purchasing. Thanks to the increased volume Delticom also benefited from economies of scale in the procurement function. In addition and according to schedule, Delticom generated a greater share of revenues with own inventories, compared to the previous years. This helped to meet the demand even at peak times, at good margins. As a result, the gross profit advanced in the reporting period by 38.9% year-on-year, from EUR 89.8 million to EUR 124.7 million and the gross profit margin (gross profit in relation to total income) progressed from 28.5% to 29.3%.

Personnel expenses. Thanks to the highly efficient operating workflows, the company has been able to keep staff levels low in 2010 despite increasing transaction volumes. In the reporting period on average 101 staff members were employed at Delticom (previous year: 87). Personnel expenses amounted to EUR 6.8 million (previous year: EUR 5.8 million). Compared to the prior-year period, the personnel expenses ratio (staff expenditures as percentage of revenues) decreased slightly from 1.9% to 1.6%.

Other operating expenses. Overall the other operating expenses totalled EUR 69.5 million in the past financial year, an increase of EUR 16.0 million or 29.8% over the prior-year value of EUR 53.5 million.

Among the other operating expenses, transportation costs is the largest line item. Tyres sold online are picked up at the delivery points by parcel services which then transport the tyres to the customers or fitting stations. As business volume increases, so too do these transportation costs, from EUR 26.8 million by +28.8% to EUR 34.5 million. The share of transportation costs against revenues decreased from 8.6% in 2009 to 8.2% in 2010. The reason for this was the significant price effect in the revenues for the last financial year and in the closing quarter in particular. In addition, economies of scale arising from the centralised warehouse infrastructure helped to further drive down costs.

In the reporting period, costs for advertising totalled EUR 9.0 million, after EUR 7.7 million in 2009. This represents a marketing expense ratio (marketing expenses as a percentage of revenues) of 2.1%, after 2.5% in the corresponding period of the previous year. One of the reasons was the snowy winter which clearly illustrated the importance of appropriate tyres to safety-conscious drivers. Costs were also lower due to the fact that the client base has grown continuously over the course of the years.

Depreciation. In line with our gradual warehouse capacity expansion and the parallel investments into warehousing infrastructure, scheduled depreciation rose by 24.8% from EUR 1.0 million in 2009 to EUR 1.3 million. The low absolute level of depreciation underlines the low capital intensity of Delticom's business.

Earnings performance. Earnings before interest and taxes (EBIT) improved during the reporting period to EUR 47.1 million (2009: EUR 29.4 million). This corresponds to an EBIT margin of 11.2% (2009: 9.4%). The continually low Euro money market rates led to a poor financial result of EUR 102 thousand (2009: EUR 163 thousand). The expenditure for income taxes was EUR 14.9 million (previous year: EUR 9.3 million). The tax rate of 31.6% was unchanged from the previous year. Consolidated net income for 2010 grew from EUR 20.2 million to EUR 32.3 million. This corresponds to earnings per share (EPS) of EUR 2.72 (undiluted, 2009: EUR 1.71), a step-up of 59.4%.

Cash flow and liquidity position. The cash flow from ordinary business activities (operating cash flow) for the period under review was EUR 51.7 million. The strong increase from last year's EUR 13.1 million was partly due to a significant drop of funds tied up in net working capital by EUR 11.9 million. During the reporting period, Delticom made investments of EUR 3.4 million into property, plant and equipment, EUR 0.8 million into financial assets and EUR 0.1 million into intangible assets. Delticom boasts a healthy financial and assets position. At EUR 67.8 million, our liquidity remains high (previous year: EUR 40.6 million).

At Delticom's Annual General Meeting on 03.05.2011, the Management Board and the Supervisory Board will propose a dividend of EUR 2.72 per share – an increase of 60.0% compared to the dividend for financial year 2009 of EUR 1.70.

OutlookResults such as those posted in 2010 have naturally raised expectations for the current year. It would be imprudent to expect the combination of positive factors which were key in driving our 2010 performance to occur again this year. German regulations requiring drivers to fit winter tyres will play a less important role in 2011. That the next winter will experience as much snowfall as last winter remains to be seen. At the same time, shortages of replacement tyres cannot be ruled out. Many tyre manufacturers have already raised their prices as a result. It is expected that the European tyre trade will see a year-over-year decline in the second half of 2011.

At this point, experts are simply unable to assess the potential impact which the destruction in Japan could have on the tyre supply chain. While Delticom does not operate any business in Japan, it is nevertheless possible that the difficulties there could also have indirect consequences on the European tyre trade.

Independent of those short-term developments, the share of online sales in the tyre market continues to be comparatively low. More and more drivers are turning to the Internet in search of lower-priced alternatives, and an increasing number of these will make their tyre purchases in our shops. Despite the exceptionally strong results posted in 2010, Delticom plans an increase in sales volumes of approximately 10% for the current year – an ambitious, but achievable goal.

In calculating future EBIT margins, the management orients themselves to rates of growth more in line with reasonable long-term expectations. Consequently, the forecast for the 2011 EBIT margin is about one percentage point below that which was achieved in 2010. Despite this, the current view is that earnings per share could reach 2010 levels if the current business year unfolds in a positive manner.

The full Annual Report for 2010 can be downloaded from the website www.delti.com within the "Investor Relations" section.

Company profile: Delticom, Europe's leading online tyre retailer, was founded in Hanover in 1999. With more than 100 online shops in 39 countries, the company offers its private and business customers an unequalled assortment of excellently priced car tyres, motorcycle tyres, bicycle tyres, truck tyres, bus tyres, special tyres, rims, complete wheels (premounted tyres on rims), selected replacement car parts and accessories, motor oil and batteries. The independent
website reifentest.com contains impartial information about tyre tests and helps the customers choose from more than 100 tyre brands and more than 25,000 tyre models. Delticom delivers either directly to the customer's home address, or to one of more than 27,000 service partners – affiliated garages which take delivery of tyres and then install these on the customer's vehicle. Delticom's Wholesale division also sells tyres to wholesalers domestically and abroad.

On the Internet at: www.delti.com
Selected online shops: www.reifendirekt.de, www.123pneus.fr, www.mytyres.co.uk, www.reifendirekt.ch

Media Contact:
Melanie Gereke
Brühlstraße 11
30169 Hanover
Phone: +49-511-93634-8903
E-Mail: melanie.gereke@delti.com

Rockstone Tyres available at Tyrepac!

2011-03-15T12:46:00.004+08:00

Tyrepac has one again brought in another exclusive tyre in Singapore, with the latest Rockstone F105, F109, 109 in 13 different sizes. The Rockstone F105, F109, & 109 can now be purchased online at Tyrepac. Get yours today!

Rockstone F105
The Rockstone F105 is an economical, high performance tyre. The asymmetric tread pattern provides protection against aquaplaning and good water drainage. Technology adopted by Rockstone ensures that the tyre retains steering precision even at high speeds. A carefully chosen blend of rubber with tread blocks layout reduces the sound emitted by the tyre, maintaining acoustic comfort. The Rockstone F105 maintains its high performance and comfort even at high speeds.

Rockstone F109
The Rockstone F109 is an economical, high-performance tyre. The tread pattern provides protection against aquaplaning and good water drainage. Technology adopted by Rockstone ensures that the tyre retains steering precision even at high speeds. A carefully chosen blend of rubber with tread blocks layout reduces the sound emitted by the tyre, maintaining acoustic comfort. The Rockstone F109 maintains its high performance and comfort even at high speeds.

Rockstone 109
The Rockstone 109 is an economical, high-performance tyre. The tread pattern provides protection against aquaplaning and good water drainage. Technology adopted by Rockstone ensures that the tyre retains steering precision even at high speeds. A carefully chosen blend of rubber with tread blocks layout reduces the sound emitted by the tyre, maintaining acoustic comfort. The Rockstone 109 maintains its high performance and comfort even at high speeds.

Nokian Tyres Fastest on Ice: New World Record 331,61 km/h!

2011-03-07T16:00:00.000+08:00

The new world record for fastest car on ice was set by Nokian Tyres' test driver Janne Laitinen who drove 331,610 km/h (206,05 mph) on the Gulf of Bothnia in Oulu, Finland. The record was broken on March 6th on a 14-kilometre ice track in freezing conditions. The world's leading winter tyre manufacturer equipped the record-breaking car with Nokian Hakkapeliitta 7 studded tyres (255/35R20 97 T XL).

Extreme speeds emphasise the role of top-quality tyres; they are the vehicle’s only contact point with the driving surface. When driving at exceptionally high speeds on slippery ice, the tyres must provide maximal grip, excellent structural durability and handling properties that are in line with the car's high power.

The acceleration formula is demanding. When a car moves at a speed of 331 km/h, the car covers over 92 metres in one second. The tyres are under immense pressure at these high speeds, and their diameter can increase by 15–20 mm. As the air resistance increases, more traction is needed in order to pick up speed.

- Testing at high speeds in demanding conditions forms an important part of our winter tyre development. Testing our boundaries can teach us new things, which can then be reflected in all of our products, explains Matti Morri, Nokian Tyres' Technical Customer Service Manager.

The Guinness World Records organisation outlines detailed rules for ice driving world records. The time for the one-kilometre distance is taken for driving in both directions of the track, and the world record time is the average of these two results. The vehicle takes a flying start. There is a total of one hour to complete the record attempt. The ice has to be natural and it may not be roughed up or treated with any chemicals. The tyres must be commercially available and approved for road traffic in the country in which the record attempt takes place.

Inventor of the winter tyre is master of extreme conditions
Nokian Tyres developed the world’s first winter tyre for raw, subzero conditions back in 1934. Two years later, it introduced the Hakkapeliitta, designed for northern winters and today one of the world’s best-known winter tyre brands. The world’s northernmost tyre manufacturer tests and develops new additions, customised for different uses, for its winter tyre family at its own test facilities in Ivalo, 300 kilometres north of the Arctic Circle.

Nokian Tyres is the only tyre manufacturer in the world that focuses on products and services that facilitate safe transportation in Nordic conditions. The company's innovative passenger car, van and heavy-duty machinery tyres are mainly marketed in areas that have snow, forest and changing seasons that make driving conditions demanding. Nokian Tyres owns the Vianor tyre chain that comprises more than 770 stores in 20 countries. The company's net sales for 2010 totalled approximately EUR 1,058 million, and it had 3,500 employees.

Read more: www.nokiantyres.com/fastest-on-ice

Video and photos: www.nokiantyres.com/FastestOnIce

Further information: www.nokiantyres.com

Merry Christmas and a Happy New Year from all of us at Tyrepac!

2010-12-23T11:47:00.003+08:00

Delticom AG acquires majority stake in Tyrepac

2010-12-13T16:14:00.003+08:00

13th December, 2010, Singapore – Delticom AG, Europe’s leading online tyre retailer and Tyrepac Pte Ltd, Asia’s First Tyre Portal, today announced the acquisition of a majority stake in Tyrepac Pte Ltd, Asia’s First Tyre Portal, for an undisclosed amount in cash. The transaction is structured as a capital increase at Tyrepac.

Tyrepac provides consumers in Asia a central platform to buy tyres online. The webshops allow easy comparison of tyre brands, patterns, and prices. In addition, the company operates a growing network of service partners who stand ready to fit the tyres. Since its foundation in 2008, Tyrepac has expanded into Malaysia, Hong Kong, China, and South Korea. “The acquisition is a landmark development for our customers, partners, and the team. We are excited to be part of the Delticom Group", says Ler Hwee Tiong, co-founder and Managing Director of Tyrepac.

Delticom AG currently operates more than 100 online shops in Europe, US and Canada. “The transaction is an important building block in our long-term Asian strategy”, says Rainer Binder, CEO of Delticom. Starting from Tyrepac’s credible brand and proven track record, the joint venture will help Delticom to reach into new high-growth, emerging markets.

“For Tyrepac, the cash inflow paves the way for accelerated growth”, explains Frank Schuhardt, CFO of Delticom and member of Tyrepac’s Executive Committee. Further support for expansion plans will also come from the strong Delticom balance sheet. Tyrepac is expected to benefit from the parent company’s operational experience, but will retain its localised go-to-market approach. Over the course of the next months, both teams are going to work closely together to integrate their systems and processes.

About Delticom
Delticom is Europe’s #1 online tyre retailer. Founded in 1999, the Hanover-based company operates more than 100 online shops in 35 countries and has served more than 4,000,000 customers so far. The company offers a wide range of products for private and business customers: over 100 tyre brands for cars, motorcycles, commercial vehicles and buses, but also complete wheels, motor oil, replacement parts and accessories. The products are delivered to any address the customer chooses. Alternatively, Delticom delivers the tyres to one of more than 25,000 service partners worldwide for professional fitting directly on to the customer’s vehicle.

Delticom is listed on the German Stock Exchange (ISIN DE0005146807, ticker symbol DEX). As of December 2010, market capitalisation stands at approximately EUR 750 million (S$ 1,300 million). The company is expected to end the 2010 fiscal year with revenues totalling more than EUR 400 million (S$ 700 million), an growth of around 30% year-on-year (2009: EUR 311 million, S$ 540 million).

About Tyrepac
Tyrepac was founded in Singapore in 2008, and is Asia’s first tyre retailing portal. Now operating in several Asian countries, Tyrepac offers a comprehensive range of car and motorcycle tyres, transparent pricing, convenience from more than 2000 service partners in Asia, and a wide variety of product information and other customer education. In Singapore, consumers can also have tyres fitted at the comfort of their home, via its mobile fitting service. Tyrepac also offers quotation for batteries, automotive insurance, and servicing packages in collaboration with its service partners.

Kumho Ecsta HM KH31 available EXCLUSIVELY at Tyrepac

2010-10-27T15:01:00.003+08:00

The Kumho Ecsta HM KH31 has landed in Singapore! Tyrepac has landed another first as this tyre is only exclusively available online at Tyrepac – get yours today before they are sold out!

The Kumho Ecsta HM KH31 delivers tyre performance that is very adaptive to both wet and dry roads. You can feel the difference with supreme braking in the rain and less road noise in all conditions. The cross shaped side of the shoulder breaks the water tension, the streamline round grooves push the water aside and the four straight grooves maximize drainage. The modern and distinctive sidewall design features solid lettering and comb shaped serration band.

Features:

· Balanced performance

· The best combination of in-out design

· ECSTA brand logo on the center rib

· Improved hydroplaning performance, reduced noise levels, and crisp handling

The Kumho Ecsta KH31 is currently available in six sizes, with more sizes to come soon. The current sizes available are:

185/60R15
185/55R15
195/60R15
195/55R15
195/50R16
225/55R17

The German magazine Auto Bild (one of the world’s most successful automotive titles (2.8 million readers in Germany alone) ranked the Kumho ECSTA HM KH31 third overall out of 14 summer products from 13 tyre manufacturers – including Michelin, Continental, Pirelli and Goodyear – and ‘exemplary’ overall.

Tyres in the popular size of 185/60R15 were assessed for handling, braking, driving comfort and fuel efficiency. The resulting report concluded that ‘the KH31 demonstrated a high degree of balanced performance on both wet and dry surfaces, good aquaplaning resistance and low pass-by noise levels’. The summary recorded that the KH31 was one of three tyres to offer ‘reassuringly high reserves of safety’.

Last year the KH31 tied for second place in a tyre test conducted by another well regarded German publication – Autozeitung. With its upgraded ultra high-performance tread compound technology, the KH31 boasts enhanced driving ability and extended product life.

Tyrepac makes shopping easier!

2010-08-25T13:19:00.004+08:00

Tyrepac has always been striving to improve the shopping experience for our customers, and we pride ourselves on listening to our customers' feedback and how we can make that purchase simpler and more convenient.

We have undergone a couple of changes over the past few weeks to improve that experience by making minor changes to our website, without affecting the overall functionality, but ensuring our customers get their tyres more easily!

Changes include:

Making purchases without registration

Shopping by Brand

Simpler how we work explanation

Making purchases without registration
Customers no longer need to register before being able to make purchases on Tyrepac, eliminating a step in the purchase process. Simply click on "Buy Now" on the item you wish to purchase, and select "Express Checkout" to get straight to buying your tyres!

Shopping by Brand
Customers tend to have brand preferences, and didn't know what brands we had available. We've answered the call by allowing customers to view all the brands or patterns we carry on Tyrepac, and see what tyres are available.

Simpler how we work explanation
Customers were often clueless about Tyrepac's innovative online retailing concept, so we simplified it into 4 simple steps:

Have more feedback and ideas on how we can improve our website? Feel free to drop us an email! info@tyrepac.com

TYREPAC announces partnership with WhereTo.sg

2010-06-14T12:46:00.000+08:00

Singapore, 14 June 2010 – Tyrepac has announced that WhereTo.sg will become their official map provider for Singapore, providing their users with interactive maps to Tyrepac fitting locations throughout Singapore. Tyrepac Singapore currently has 34 fitting locations across the island.

Car owners and users will find this service helpful with interactive maps to reputable tyre retailers & workshops working with Tyrepac. Visitors to Tyrepac can also get an overview map of the outlets and service workshops in Singapore. Upon hovering on an outlet pin-pointed on the map, users can receive interactive directions to the outlet, with route shortcuts, and even the ability to search for amenities nearby.

“We are proud to welcome onboard WhereTo.sg as our official map provider and believe it will serve our users well.” said Tyrepac Managing Director, Ler Hwee Tiong. “This partnership with WhereTo.sg underlines our commitment to provide our users with the complete convenience of purchasing tyres online.”

“We find Tyrepac’s service to their customers highly innovative. It is about variety of choice and location convenience.” said Thomas Pramotedham, General Manager of WhereTo.sg. “We are proud to play a supporting role to Tyrepac’s service model.”

About Tyrepac
Tyrepac is Asia's first and largest online tyre retailing website. It provides consumers with a portal to compare tyre brands, patterns, and prices. Upon purchase, customers can choose one of its island-wide fitment stations for fitment, or opt for Tyrepac’s mobile service – which does door step tyre fitment and oil change. Tyrepac is registered and headquartered in Singapore.

About WhereTo.sg
WhereTo.sg, a free-for-public-use online map of Singapore, contains authoritative data from the Singapore Land Authority and rich information about where to find many other amenities.
WhereTo.sg also allows users to compile and compute travel instructions (by car or public transport) to intended destinations and display them on the map.

Purchasing Tyres Based On Your Needs

2010-06-04T10:06:00.004+08:00

One question our customer service officers in Tyrepac often ask our customers is, “What is your preference- quiet (comfort), or wet performance?”

There is unfortunately a trade off between wanting a quiet tyre, which generates minimal road noise, and tyres which gives good wet weather performance (generally noisier).

Directional design

As highlighted, tyres designed with grooves in a directional manner disperse water in the most economical manner. Outwards and away from the direction of travel to give you better wet weather performance. And in-order to ensure maximum volume of water dispersal, grooves has to be as wide as possible. However, this also generates road noise, particularly on dry road conditions, since air is trapped, compressed, and released - which results in “tyre noise”

Designs such as these cater to consumers who can tolerate road noise, and look for wet performance more than riding comfort.

There are exceptions in directional tyre design, which are meant for a quiet and comfortable ride. The way to judge would be to see how “wide” the grooves are.

Symmetrical design/ wave design, non-directional design

Symmetrical designed tyres have grooves arranged in a wave like manner, and usually have smaller lateral grooves cutting the tyre design, to further break up road noise.

Tyre designs such as these are quieter since priority is not in wet weather performance, but rather providing a quiet ride. There are again exceptions, when wider grooves are built-in to cater to wet weather.

Asymmetric design

Asymmetric designed tyres are a combination of comfort and wet weather performance- by having tyres designed combining the principles of wet weather, and principles of comfort. Half the surface of the tyre tread is designed for wet performance, while the other half is for comfort.

Asymmetric designed tyres have gradually grown in popularity in recent years, and are now readily available, but with a small premium in price.

The next time you need a set of tyres, don’t just accept what you are told. And to the many lady drivers who commonly have to “ask my boyfriend/ husband”, you now can instead educate him about the basics of tyre designs.

Happy motoring!

Ler Hwee Tiong, Managing Director
Tyrepac Pte Ltd

The People of Formula Drift Singapore 2010

2010-04-27T15:26:00.013+08:00

Much had been said about Formula Drift 2010 which took place in Singapore from 24th to 25th of April.

Personally, having attended practically all Formula Drift events, I am often touched by the people who make events such as these a success.

This feature is therefore a tribute to some of these people, who braved the sun and the rain to make Formula Drift Singapore 2010 so memorable.

The dedicated team from Formula Drift USA - among them Ryan and Jim, creator of Formula Drift.

Marcus Lim, Technical Director and franchise holder for Formula Drift Asia

Some of the operational crew for Formula Drift Asia, who toiled hard behind the scenes, and often neglected- at the starting grid, on the trackside, for inspections, registrations…the list goes on.

We cannot have a race without drivers, who often double up as models. Kudos to them for decking out in full race suit in this heat!

And we cannot have cars without the mechanics, who happens to be drivers sometimes, and who happens to be models some other times.

A special mention of the Tyrepac team, who over 3 days ensured all tyres change, was well handled and managed.

Various teams in the sponsor’s village kept visitors to the event occupied with merchandize, games, contest, food, and fun.

It is the effort of film crew and photographers, who captured all the pivotal moments of this great event to share and broadcast to the world.

And all these could not have happened without the kind sponsorship of various brands, and it definitely would not have happened without the enthusiastic crowd who came to this event.

Not forgetting (and who could have), the girls who always kept the smile, to make those few days brighter.

Lastly, not forgetting the fire fighters, the safety crew, the marshals, drivers’ support crew, the cleaners, and the security crew. The event was significant because all these people made it so.

Words: Ler Hwee Tiong, Managing Director, Tyrepac

TYREPAC announces Formula DRIFT Singapore 2010 Lineup

2010-04-14T13:02:00.002+08:00

Tyrepac is proud to announce its Formula DRIFT Singapore 2010 lineup, featuring Ee Yoong Cherng from Malaysia and Charles Ng from Hong Kong. The drivers will feature at Formula DRIFT Singapore under Team TYREPAC Kumho.

Formula DRIFT Pro-Am 2009 Championship Irwindale winner Charles Ng is coming off an impressive debut at the 1st leg of the 2010 Formula DRIFT Professional Championship at Long Beach, finishing in the top 32. Ng gained his Formula DRIFT Pro License in his first year participating in Formula DRIFT Pro-Am, finishing 7th overall at the National Championships. Yoong will be back behind the wheel of his trusted Silvia S13 after pushing eventual winner Tengku Djan close at Formula DRIFT Malaysia 2009 for a place in the last eight.

“Our new team this year, with the addition of Charles from Hong Kong, and support from Kumho, has plenty of potential to do well at the event.” said Tyrepac Managing Director, Ler Hwee Tiong. “Tyrepac is again proud to be represented at the Formula DRIFT series.”

Tyrepac has been supporting Formula DRIFT in Asia since it was brought to the region by DriftPac Pte Ltd, and it has helped in fueling the growth of motorsports in the region. Sponsoring the event for the past two years, Tyrepac was represented at Formula DRIFT Malaysia 2009 with its very own drift team.

“Drifting has proven to be the fastest growing motorsports in Asia, and Tyrepac is committed to supporting the growth.” added Ler.

Special prizes will be given away at the team’s display booth, along with attractive games, topped off by Team TYREPAC Kumho drivers’ autograph sessions and guest appearances by Formula DRIFT USA stars. Tyrepac will also front all tyre changing facilities at Formula DRIFT Singapore.

About Team TYREPAC Kumho
Team TYREPAC Kumho was established in 2009 by Tyrepac - Asia’s First Tyre Portal. In line with one of their key objectives about educating consumers about tyres, Tyrepac is utilizing drifting as a platform for education on tyre safety, as tyres can make or break a drift.

Drifting is recognised as the fastest growing motorsport in Asia, and Tyrepac is proud to bring that passion to the fore and encompass its commitment to demonstrate its product knowledge and professionalism by sponsoring their own team to take part in regional drift tournaments. Team TYREPAC Kumho is yet another significant benchmark for Asia’s First Tyre Portal.

Team Tyrepac comprises of Ee Yoong Cherng from Malaysia & Charles Ng from Hong Kong. Yoong takes charge of a Nissan Silvia S13 and Charles struts his stuff in a Nissan Skyline R33.

About Tyrepac
Tyrepac is Asia's first and largest online tyre retailing website. It provides consumers with a portal to compare tyre brands, patterns, and prices. Upon purchase, customers can choose one of its island-wide fitment stations for fitment, or opt for Tyrepac’s mobile service – which does door step tyre fitment and oil change. Tyrepac is registered and headquartered in Singapore.

About Kumho
Kumho Tire Co, Ltd. is a South Korean industrial conglomerate headquartered in Gwangju, South Korea. Kumho is a subsidiary of the Kumho Asiana Group. The company currently has eight manufacturing facilities across South Korea, China & Vietnam. In addition, it also has three centers in South Korea, USA & the United Kingdom for research and development.

About Ee Yoong Cherng
Ee Yoong Cherng has been drifting competitively since 2004, and is one of the pioneers of the drifting community in Malaysia, establishing Malaysia's Premier Drift Enthusiast Website- drift.com.my. Yoong’s consistent performance has seen him finish in the top 16 in last year’s Singapore and Malaysia legs of Formula Drift. Yoong’s passion for drifting has seen him help organize and judge on various drifting competitions in Malaysia & Singapore, and feature as a stunt driver in Malaysia's own hit film Evolusi: KL Drift Part 1 & 2.

About Charles Ng
Charles started racing when he was 18, and has gone on to win multiple achievements, winning the famous USA Skip Barber Mazdaspeed MX-5 Challenge West 2008/2009 and receiving the rookie of the year award amongst others. He debuted at the 2009 Redline Time Attack Season Opener with a win in the Modified Rear wheel drive category, dominating the rest of the class by over 3 seconds.

Charles’ foray into drifting in 2009 saw him win the Formula Drift Pro-Am Championship at the Irwindale Toyota Speedway, and obtained his Formula Drift Professional License by qualifying 7th at the Formula Drift Pro-Am National Championship. His debut at the 2010 Formula Drift Professional Championship saw him place 29th in the opening round at Long Beach, CA. Charles will also be racing in the full season of the Asian Touring Car Series this year.

Michelin Pilot Sport 3 is available at Tyrepac

2010-04-09T15:01:00.006+08:00

The Michelin Pilot Sport 3 is now available in Singapore, though in limited sizes.
With regards to speculation that the Michelin Pilot Sport 2 will be discontinued, sources confirm that initially the Pilot Sport 3 will run alongside the Pilot Sport 2.

For the full range of Michelin Pilot Sport 3 tyres available, please visit Tyrepac.

The Michelin Pilot Sport 3 follows the success stories of the Pilot Sport and Pilot Exalto range which had over 200 homologations (approvals) from car manufacturers including Audi, Porsche, BMW, Ferrari and Merecedes to name a few. The Michelin Pilot Sport was also fitted to a Bugatti Veyron which set a world speed record of over 250 mph in 2005.

About Michelin Pilot Sport 3
The Michelin Pilot Sport 3 delivers high levels of grip. On wet surfaces, it holds the road better when cornering and stops three metres shorter than its predecessor, the reigning benchmark sports tyre. In addition, the Pilot Sport 3 tyre provides very precise steering for an enjoyable driving experience. It also boasts outstanding fuel efficiency and extended mileage among its dynamic qualities

The Michelin Pilot Sport 3 has been built with unique, highly advanced technologies, such as the Green Power Compound, the Anti Surf System and Programmed Distortion tyre architecture.

Tyrepac presents the ORIX AutoCentre Sales @Tampines

2010-03-22T15:34:00.007+08:00

Tyrepac presents the ORIX AutoCentre Sales @Tampines

Fri, March 26 till Sun, March 28, 2010
Daily 9am to 6pm

ORIX AutoCentre Tampines
22 Tampines St 92

More Details

TYREPAC turns ONE!

2010-02-19T14:32:00.012+08:00

TYREPAC officially turns one today, having made significant headway in its first official year of operations - with significant exposure at Formula Drift and across media outlets.

Tyrepac started amidst a cloud of uncertainty in September 2008. The global economy was undergoing a melt-down, and tyre manufacturers and distributors big and small were strongly against having prices openly published for whatever reasons.

The entire tyre industry in Asia practices a pricing system which works against the ignorant.

We were going to change all that, and were determined to see this business model in Asia. Now after a year, and spanning Singapore, Malaysia, Hong Kong, Korea and China, we know consumers appreciate what we are doing. They tell us so, on a daily basis.

We are already working on getting the entire buying experience fully automated from the supply, to the online retailing experience, and ultimately to accounting. Our continual investment in hardware and software is to ensure consumers feel totally at ease buying from our online platform.

Tyrepac Singapore today offers tyres, auto insurance quotes in cooperation with Phillips Securities, battery change and emergency battery rescue service. Best of all - No membership required!

Our objectives of being comprehensive, transparent, easy to use, convenient, and educational to the consumers seem to serve well so far.

Tyrepac Singapore today hovers between 5th to 7th position on the HITWISE report as a retailer, behind some of the biggest names for online retailing. As we go about gaining awareness outside of Singapore, Tyrepac will soon truly be Asia’s tyre portal.

A big Thank You to our valued customers, suppliers, staff, partners, family, and friends for believing in Tyrepac.

Happy Lunar New Year from Tyrepac!

2010-02-13T14:00:00.002+08:00

Tyrepac 1st Year Anniversary!

2010-01-06T14:01:00.001+08:00

Tyrepac is turning ONE, and to celebrate this occasion, are running our 1st Anniversary Sales with fantastic offers never seen before! Drop by and get your new tyres in this new year!

Formula DRIFT Malaysia 2009

2009-12-26T10:38:00.008+08:00

Tyrepac co-sponsored the Goodyear Formula Drift Malaysia held in MAEPS (Malaysia Agro Exposition Park Serdang) from 19th to 20th of December 2009. The event was a roaring success, attracting a crowd turnout in excess of 12,000 people.

The event gathered a total of 54 drivers from Singapore, Malaysia, Indonesia, Philippines, Hong Kong, New Zealand, Thailand, and Japan. Tyrepac is pleased to have Ivan Lim and Ee Yoong Chern fly the Tyrepac flag as Team Tyrepac drivers.

The race was hard fought but eventually, it was again Malaysian Tengku Djan who emerged victorious, with Thailand’s Drift King Kiki taking second spot, and New Zealand’s “Mad” Mike emerging third. It was an action-packed Sunday with the entire grandstand cheering for their home grown hero.

Festivities were in abundance throughout the two days. Goodyear’s flying blimp was seen pacing the race ground throughout the two days, drummers, autographs sessions, girls, girls and more girls…ah! Tyrepac as usual went about diligently ensuring no tyres were left unchanged for all drivers, but still found time to mingle with the crowd with some games.

Amongst some who made Formula Drift possible- Jim Liaw (3rd from left standing, Co-founder Formula Drift LLC) Ryan Sage (3rd from right standing, Co-founder Formula Drift LLC) and Marcus Lim (in white standing, MD DriftPac Pte Ltd)

Goodyear Formula Drift Malaysia was truly a well-organized, well-planned, and superbly executed event for the Asian race calendar. Kudos to ESPN event management, Goodyear, members from Formula Drift, Driftpac, Pitcrew, Tyrepac Malaysia, Newera training school, MAEPS, sponsors, volunteers, the great Malaysian crowd, and definitely the drivers.

I am sure, like me, those who did attend this event will be looking forward to the next.

Article by Ler Hwee Tiong, Managing Director of Tyrepac.

Season's Greetings to all!

2009-12-25T00:00:00.001+08:00

TYREPAC @ Formula Drift Malaysia 2009

2009-12-22T12:00:00.004+08:00

TYREPAC was the official online portal & pit change for the Formula DRIFT Malaysia 2009. Providing all the equipment & technical expertise, Tyrepac was at the forefront of the most crucial technicality of the race - changing of tyres.

The importance of tyres in the race were underlined by a technical crew racing from the pits to the track after one of the drivers punctured his tyres midway through his run. Drivers only had a 5 minute interval by which to replace their tyres or fix any faulty parts.

The commitment & dedication exemplified by the crew in carrying the heavy wheel & tyre over the distance is equivalent to what Tyrepac aspires to provide - similar commitment & dedication in serving their customers.

For more photos, please visit our Facebook.

TYREPAC- Asia’s First Tyre Retail Portal opens in China

2009-12-10T14:14:00.004+08:00

GUANGZHOU, CHINA, December 8 2009 – Tyrepac today announced the official launch of Tyrepac China (www.tyrepac.com.cn). Consumers in China now have a trustworthy and transparent platform to compare multiple brands and patterns of tyres. Upon purchase and payment online, consumers can select from a list of appointed retailers to have their tyres changed, or have them delivered to a location of their choice.

“The launch of Tyrepac China is truly a new benchmark for us. It has come at a time when we are already seeing very promising results in South East Asia.” said Tyrepac Managing Director & co-founder, Ler Hwee Tiong. “Consumers in China see the benefit of online purchase, just like how motorists in the rest of the world have come to fully embrace the convenience of shopping online for tyres.”

Tyrepac aims to simplify the purchase of tyres which can be technical to the layman by offering a comprehensive range of tyre brands and sizes, and complete price transparency. Be it the budget-conscious motorist to the motoring enthusiast, Tyrepac allows consumers to select, compare and purchase tyres that best suit their individual motoring needs from the comfort of their homes and offices, saving time and money. Tyrepac also hope to impart essential tyre knowledge in its helpful and convenient tyre portal.

“There is a lack of price transparency amongst retailers and garages, which means motorists would have to visit several outlets to ensure they get the best deals and tyres that they want.” noted Ler. “Tyrepac bridges this gap by offering motorists the perfect platform for price and product comparison at one single and convenient location. This is the first time such a service is made available in this region.”

Tyrepac presently caters to Beijing, Shanghai city and four other provinces in Central and Southern China, but will be expanding its operations to cover the whole of China within the next six to nine months. Tyrepac is targeting to have more than 3,000 fitment locations for consumers to select from throughout China. Tyrepac is now fully operational in China, Singapore, Malaysia, and Hong Kong, with South Korea set to be officially launched in the coming months.

“If you just look at how China is embracing the internet, and online shopping in particular, Tyrepac China’s potential will be apparent soon. We are really looking into the future for the China market”, says Ler.

Tyrepac’s website provides an intuitive and easy-to-use interface, which makes it simple for users to search for tyres based on car models, tyre brands or specific tyre dimensions. Tyrepac customer service consultants are available through phone, live chat or email to provide expert advice for motorists who have enquiries on suitable tyres for their vehicle.

Apart from purchasing tyres, customers can read and post reviews on tyres, and find pertinent information on tyre related matters. Other value added services on the portal includes allowing customers to interact with each other through an online forum.

Consumers can now purchase tyres online via Tyrepac China’s website at www.tyrepac.com.cn or contact a customer service consultant through the hotline number at 400-623-4232.

TYREPAC officially launches in Hong Kong

2009-12-03T15:00:00.005+08:00

Hong Kong, 3 December 2009 – Tyrepac, Asia's first and largest online tyre retail portal today officially expanded its services into the Hong Kong market. Headquartered in Singapore, Tyrepac continues to focus on its four key principles of offering comprehensive tyre brands and patterns, complete transparency, ease and convenience, and education to consumers.

“We continue to approach Hong Kong’s market with objectives we know consumers will appreciate- to be comprehensive, transparent, easy to use with convenience, and to be educational.” said Tyrepac’s Managing Director and co-founder, Ler Hwee Tiong.

Over 1,000 product offerings are available online with their prices displayed. Customers are able to search for tyres based on car models, or specific tyre dimensions. Tyre replacement service can be arranged at numerous garages situated throughout Hong Kong.

Tyrepac Hong Kong’s mobile fitment service further adds convenience and time-savings to consumers with fitment at a location of their choice. “We launched the mobile service in Hong Kong because we know today’s busy motorists will appreciate this service, and it has proven to be a remarkable success in Singapore.” noted Ler.

Tyres are designed and built to provide safety throughout its useful service life. Consumers should properly maintain their tyres and have them regularly inspected for signs of damage. Tyrepac’s informative tyre education section allows users to find tyre educational topics. Consumers can contact Tyrepac for expert advice on tyres by calling Tyrepac Hong Kong’s hotline at 2419-0009, or have instant conversations via its unique Live Chat service, or email info@tyrepac.com.hk.

“We open all means of correspondence to Tyrepac to ensure that all of consumers’ doubts are clarified and that they are provided with accurate information to purchase a set of tyres which cater to their needs”, added Ler.

Tyrepac will in due course further expand its products and services in Hong Kong to include batteries, insurance, engine oil, and other related products.

First peek at the Team TYREPAC Goodyear R32

2009-12-02T17:00:00.000+08:00

Here is a sneak peek of the new TYREPAC R32 cars that will represent Team TYREPAC Goodyear at the 2009 Formula Drift Malaysia:

To get a first glance at the Team TYREPAC Goodyear car, head down to 1 Utama between 12pm – 8pm on Saturday 5 Dec and Sunday 6 Dec for the Goodyear Formula Drift Roadshow to catch our very own Team TYREPAC Goodyear driver Ee Yoong Chern and the R32 on display and win exclusive ESPN STAR Sports Merchandise!

About Team TYREPAC Goodyear
Team TYREPAC Goodyear was established in 2009 by Tyrepac - Asia’s First Tyre Portal, together with one of the world's largest tyre companies, Goodyear. In line with one of their key objectives about educating consumers about tyres, Tyrepac is utilizing drifting as a platform for education on tyre safety, as tyres can make or break a drift.

Drifting is recognised as the fastest growing motorsport in Asia, and Tyrepac is proud to bring that passion to the fore and encompass its commitment to demonstrate its product knowledge and professionalism by sponsoring their own team to take part in regional drift tournaments. Team TYREPAC Goodyear is yet another significant benchmark for Asia’s First Tyre Portal.

Team Tyrepac comprises of Ivan Lim from Singapore & Ee Yoong Cherng from Malaysia. Ivan drifts in a Nissan Silvia S13 while Yoong takes charge of a Nissan Skyline R32.

Tyrepac sponsors Goodyear Formula DRIFT Malaysia 2009

2009-11-13T12:00:00.003+08:00

Singapore, 13 November 2009 – Tyrepac, Asia’s first and largest online tyre retailing site, today announced its sponsorship of the Goodyear Formula DRIFT Malaysia 2009, which will be held from the 19th to 20th of December, 2009, at the MAEPS (Malaysia Agro Exposition Park Serdang).

The Goodyear Formula DRIFT Malaysia is organized by ESPN STAR Sports (ESS) and supported by Goodyear as the Title Sponsor, Tyrepac as the Official Online Portal, Banana Boat as the Official Sunblock and Hypertune as the Official Magazine.

“The success of our tie-up with ESPN STAR Sports and Goodyear has proven successful in Formula DRIFT ProAm Singapore, and we are pleased to extend this relationship into Malaysia.” said Tyrepac Managing Director, Ler Hwee Tiong. “Tyrepac is again proud to be associated with the Formula DRIFT Series as one of the sponsors of this event.”

Tyrepac will be represented at Formula DRIFT with their very own drift team - Team TYREPAC Goodyear, being helmed by the experienced Ee Yoong Cherng from Malaysia & Ivan Lim from Singapore. They will come up against over 50 competitive drivers from across the Asia-Pacific region, with drivers hailing from as far as Japan, New Zealand, Philippines and Hong Kong, as well as Indonesia, Thailand, Singapore, and Malaysia.

“Forming our own drift team came about naturally as part of our progression of sharing our tyre expertise, and we want to make use of this opportunity to educate consumers on the importance of tyre safety,” added Ler. “Drifting is the fastest growing motorsport in the region, and Tyrepac definitely wants to set another benchmark by being at the forefront of it.”

Why I try to drive with patience?

2009-10-29T00:00:00.001+08:00

I drive, whenever I am working out of Singapore from West to East, Bukit Panjang to East Coast and return. The journey is about 55km both ways. The journey coincides particularly with motorcyclists from and to Malaysia along the BKE, PIE, KPE, ECP stretch of road (depending on route taken for the day).

It is a very stressful situation having to put up with these motorcyclists who take up the openings between cars, sometimes preventing overtaking. It is hair-tearing to have some of them taking up the fast going lanes- sometimes in “staggered formation”.

But each day I tell myself to practise patience since wedging anyone between cars, and pinning anyone under my car will be the last thing I want. And I don’t think I will sleep well ever again should something like these happen. So, this is a call to all drivers just to have a little patience while driving and much as I sometimes also feel they should be “put in place”, we don’t want to end up with murder.

Words: Ler Hwee Tiong.

TYREPAC Hong Kong launches mobile service

2009-10-28T12:00:00.000+08:00

Tyrepac, Asia’s first tyre portal, today announced the launch of Tyrepac mobile service in Hong Kong. Consumers in Hong Kong can now have their tyres fitted in the comfort of their home or office after buying them online at www.tyrepac.com.hk.

“We are extremely pleased to now offer, the same convenience consumers in Singapore have been enjoying, to the consumers in Hong Kong.” said Tyrepac Managing Director & co-founder, Ler Hwee Tiong. “Consumers can soon also look forward to battery change and a host of other services on top of the tyre changing services offered.”

Funded by Spring Singapore, Tyrepac announced its official launch in February 2009. Now also operating in Malaysia, Hong Kong, China, and South Korea - Tyrepac is the pioneer of online retailing concept for tyres in Asia. Less than a year since its inception, Tyrepac is already creating ripples in the regional automotive industry with its comprehensive product data and price transparency.

With fitting locations strategically located throughout Hong Kong, the mobile service provides house call service for tyre change and servicing. Tyrepac has brought tyre servicing to an entirely new level of convenience for automotive customers. Backed by a team of professional tyre consultants, consumers can call Tyrepac’s hotline, 2419 0009 for any queries.

Run-Flat Tyres

2009-10-22T00:00:00.005+08:00

In recent years, run-flat tyres (RFT) have been gaining in popularity. In fact, the development of RFT has been around for some time. Nowadays, brands such as Michelin, Continental, Goodyear, Bridgestone, Dunlop, Firestone, Pirelli, Yokohama has a range of products, otherwise indicated as the RFT (Run Flat Tyre), SSR (Self Supporting Run-flat) or ZP (Zero Pressure), and so forth.

Run Flat Tyres (RFT) are also commonly known as "puncture-proof tyres," however, that tagline is a bit untrue as RFT are not entirely immune to punctures. RFT at the punctured state (low pressure or the tyre pressure of zero state) can maintain travelling speeds of up to 80km/h for up to 80km or so.

Automakers pitch run-flats as a safety feature because they let drivers avoid stopping on busy highways and other dangerous locations. They also say they like the design flexibility they get by eliminating the space-consuming spare tyre. Even though run-flats are heavier, the lack of a spare tyre can save vehicle weight overall, helping fuel efficiency. Below we analyze the structure and principle of RFT, and its advantages & disadvantages.

Construction and Principle:

Above shows the construction of a run-flat tyre.

The main ingredient of tyre is rubber, but rubber itself is unable to cope with any load, thus the load of tyres mainly depend on layers of a reinforced fibre and steel wire. Rubber elasticity is much lower than fibre and steel wire, thus adequate tyre pressure ensures the process of deformation of rubber tyres will be minimal. However, if the tyre is travelling at low tyre pressure condition, the rubber will be deformed, stretching more than the strength of the fibres and elasticity limit of the steel wire. This could cause significant damage to the tyre, as the pressure will eventually destroy the interface between the different raw materials, and in more serious cases, result in tyre failure (Figure 1).

The Advantage with Run flat tyres is that they can operate without air in them, for a relatively short distance and low speeds, as their basic shape is kept by rigid components. This rigidity helps a driver maintain control of the vehicle if the tyre loses pressure (Figure 2), and allows the driver to continue driving, the pressurised air contained within the tyre supports the weight of the car. (Figure 3) However, recently tyres have been developed which are able to support the weight of the car by themselves, for a short period of time. New cars are also equipped with tyre pressure monitoring devices which warn the driver of a tyre pressure loss.

Benefits:
• Eliminate the need to change a tyre in bad weather or in dangerous roadside areas.
• Safety and reduced risk of accident - blowouts and tyre deflation can be serious driving risks for drivers.
• Tyres can be driven on for 80 kilometres or more with no air in them enable drivers to get to a mechanic without having to change the tyre after a puncture.
• Car need not be equipped with a spare tyre, resulting in more trunk space.
• The absence of a spare wheel contributes to lower vehicle weight which will in turn reduce fuel consumption, reduce harmful exhaust emissions, improve performance, handling and braking characteristics.
• Tyre pressure monitoring devices warn the driver of a tyre pressure loss.

Disadvantages:
• RFT's sidewall is harder than ordinary tyres, so comfort is compromised.
• To improve this problem, Bridgestone introduced a new RFT tyres with sidewall texture similar to ordinary tyres, thereby enhancing the comfort of the tyre.
• High replacement costs; and limited replacement choices.
• If the material that penetrated the RFT tyres is not removed, continuous driving will result in the hole getting deeper. Once the hole reaches a depth of more than 5mm, there is no way to remedy them.

While the RFT is not so popular in Singapore, increased advances in technology and maintenance of tyres translate to lower prices for them. Do not be surprised by the eventual rise in popularity of RFT that could one day put the history of roadside punctures to bed.

Run Flat Tyre abbreviations:
RFT: Run flat tyre
ZP: Zero pressure
EMT: Extended mobility technology
ROF: Run on flat
DSST: Dunlop self supporting technology
SSR: Self supporting runflat

One of Tyrepac’s four key objectives is to ensure consumers are educated about tyres, and get the product best suited to their needs . Read more about Tyres @ Tyrepac - Tyre Education

Tyrepac soft launch China Operations

2009-10-01T00:00:00.005+08:00

Tyrepac China conducted a soft launch for selected media on 23rd September 2009. Held at 廣東人家 in Guangzhou, China, media guests from newspapers, car magazines and other established websites gathered to gain a better understanding on the working principles of Tyrepac.

The media were given an introduction on Tyrepac’s background, and they were truly impressed by how Tyrepac had managed the convergence of the Internet and a traditional industry in the Asia Pacific region – tyre retailing and expanded this across Asia.

At the end of the day, each representative brought home more than Tyrepac’s achievements, but more significantly, the potential and impact that Tyrepac would have on the China tyre industry. A tough challenge lies ahead in establishing Tyrepac in China, but all the groundwork have been laid, and with enthusiastic personnel for support, Tyrepac is set to make waves in China.

Tyrepac Malaysia Official Launch 18th August 2009

2009-08-27T15:08:00.018+08:00

Tyrepac Malaysia officially launched their portal on 18th August 2009, bringing the convenience and benefits of buying tyres online to consumers in Malaysia. For the first time, consumers in Malaysia are able to choose and compare prices across various tyre brands and patterns, just by a click of their mouse.

The launch was held at The Sanctuary at The Curve, Mutiara Damansara. “It is indeed a pleasure and great honor to have such a fantastic turnout of friends from the media, as well as within the tyre industry as well,” says Adrian Thio, General Manager (S.E.A).

The event was attended by representatives from the major manufacturers in Malaysia, and the mainstream media as well. A memorable quote from a guest, “Finally we know how much a tyre really cost now!”

The event started at 4.30pm with Mr Jacob Chen, Manager Director of Tyrepac Malaysia, giving his views on the local tyre market, and how Tyrepac Malaysia will revolutionize the tyre retailing landscape of Malaysia. “Since its launch in Singapore 6 months ago, Tyrepac has grown in leaps and bounds and continuously created new benchmarks in the tyre retail market. I am confident that the response here will be just as good, if not better, considering Malaysia is the largest sedan market in South East Asia,” says Jacob.

Following Jacob’s speech, Adrian presented to the media and guests on the milestones of Tyrepac, the importance of tyre safety and how easy it is to purchase and change a new set of tyres using Tyrepac Malaysia’s portal, www.tyrepac.com.my. “Being comprehensive in product offering, transparent in prices, easy to use website, and educational to motorist are the 4 key objectives when constructing the website,” says Adrian. These objectives laid out by Tyrepac clearly indicate the benefits motorists can have when it comes to their next tyre change.

With such a new concept of changing tyres in Malaysia, many questions were asked by the media after the presentation. “How to fit the tyres?” “How do I know which one to choose?” were some of the questions raised. “Our aim is to make tyre changing simple and convenient to everyone. With over 60 fitting outlets to choose from, customers can now buy any tyre available and get it fitted at a tyre shop located conveniently to them. And if all else fails, our customer service personnel is always there to provide advice and assistance,” says Adrian.

The launch in Malaysia is the 1st outside of Tyrepac’s headquarters in Singapore. Tyrepac is currently operating in Hong Kong, South Korea, China (Guangzhuo) and Singapore. “Our launch in Malaysia is the beginning of a long journey, a journey to finally bring the purchase of an unglamorous product - tyres into the comfort of everyone’s home.”

Tyrepac Malaysia officially launched

2009-08-18T17:00:00.001+08:00

Tyrepac Malaysia was officially launched today, signalling a significant step as Tyrepac expands across the region. Stay tuned for more pictures from the launch!

Official Press Release

Tyrepac Malaysia Factsheet

A Journey into Tyres

2009-08-18T11:25:00.004+08:00

Having freshly graduated from university with a degree in sociology, I had no clue as to what my future held. Like many of my other peers, I felt lost in what type of career I wanted to venture into. Finally, an opportunity came along and I grabbed it. In a blink of an eye, I’m in an industry that I never imagined myself to be in - the industry that friends looked at me in doubt when I told them about it.

They never imagined someone studying sociology to be doing something so differentBefore stepping into the tyre industry, what tyres meant to me were something black, rubbery and part of the car. Just like many people, I often just notice the car, but not its tyres. People often take for granted the tedious processes by which the tyre was designed and created. I must admit that I am one of them as well.

As I embarked on a journey to understand tyres, the technical details about tyres did leave me slightly overwhelmed. But quoting from my boss, Ler, “see tyres as just another product”, I began to understand that though tyres may involve many complex processes in its construction, they are actually just another product. Be it selling shoes or tyres, they are actually similar in many ways.

With an ever-increasing internet population, consumers are now data-savvy and often do research on products prior to their purchases. Tyrepac would be able to serve as a platform to educate the consumers on tyres which many of the traditional tyre shops would not be able to do. Being a website that is comprehensive, convenient, price transparent and educational, I do believe that this online tyre business has the potential to grow. As for me, I am glad that I am part of this family to witness its growth and as well as to grow with it.

This is an introduction by Seow Sian as she makes her way into an industry not many dare to tread on.

Tyrepac presents "Tyre Sale @ Ricardo"

2009-08-12T13:40:00.002+08:00

Tyrepac is hosting “Tyre sales @ Ricardo Leng Kee” to be held for three days from 14th to 16th August, from 930am to 6pm.

Expect to find great deals for brands such as Goodyear, Kumho, Falken, Dunlop, Nankang, Firestone and more.

Ricardo Auto is located at 6 Kung Chong Rd (off Leng Kee Road) Singapore 159143.

Call 1800 TYREPAC (8973-722) for pre-sale orders or, 6475-2112 from 14th to 16th for enquiries on available brands and sizes on offer.

View Tyre Sale @Ricardo Leng Kee in a larger map

Seow Sian

2009-08-01T17:36:00.001+08:00

About Seow Sian
Seow Sian graduated with a merit degree in 2009, majoring in sociology from National University of Singapore. With over 3 years of experience in the retail industry, she also worked as a customer service officer as an intern during her 3 years at NUS.

Feature Story: ESPN Formula Drift Pro-Am, Singapore 2009

2009-07-09T12:00:00.004+08:00

Words: Ler Hwee Tiong

Tyrepac was one of the proud sponsors of the ESPN Formula Drift Pro-Am Series held in Singapore from 4th to 5th of July at the Changi Exhibition Centre.

This year’s event saw a gathering of 37 amateur and professional drifters from Singapore, Malaysia, Indonesia, Hong Kong, and Thailand compete in front of a sold out crowd of more than 4000.

Singapore was represented by the likes of Ivan Lim, and Jansen Tan, who claimed a top 8 spot. Eventually, the large contingent from our friendly neighbours, Malaysia took the top 3 spots. Tengku Djan, last year’s runner-up and a strong contender right from the start, won the championship with a string of consistent runs.

Johan Norman Azam and Ariff Johanis, both Team Goodyear drivers, took second and third spot respectively. Amidst the field of drifters was also notably Jane Cheah, the only female drifter. Jane is also from Team Goodyear.

Goodyear’s support for drifting events in Asia is evident, from the inaugural Formula Drift in 2008, to this year’s event. Formula Drift Thailand in November 2009, and Formula Drift Malaysia in December 2009 have also been announced. We may just be seeing the beginning of Formula Drift Asia.

Special guest judges were invited from Formula Drift USA, comprising of Andy Yen and Tony Angelo. The field of 37 drifters was scaled down to 16, and 8 before the final 4competed for the top 3 spots.

Mattie Griffin entertained the crowd with his excellent bike control on both days. There were plenty of crowd pullers around, with drummers, game booths, merchandising, and of course not forgetting some eye candy.

Throughout all the whirlwind entertainment, Tyrepac was trusted to diligently ensure that the drivers never had to worry about their tyre changing.

The ESPN Formula Drift Pro Am was a great success and I am sure when it comes around next year, it will be a bigger and better event. And Tyrepac too, will be there again to ensure that no tyre is left unchanged.

Tyrepac 1st Carpark Tyre Sales @ Turf City

2009-06-02T12:12:00.011+08:00

Tyrepac’s inaugural 1st Carpark Tyre Sale event was held at Turf City over past weekend (22nd-24th May 09) and proved to be a roaring success. It was the first-ever tyre sale event held at an open-air carpark with over 15 brand of tyres for consumers to choose from. The event attracted over a thousand car owners, with over 700 tyres and rims sold. Car accessories, wipers, car care products were also sold at the event.

This was the first time car owners had the option of choosing their tyres from such a wide spread of brands, and getting them changed right on the spot. The event was organized with Tyrepac’s key objectives in mind, of providing our customers with transparent pricing, comprehensive range of tyres to choose from, convenience, and most importantly, making the right and informed choice with our advice and tyre education.

We are confident that all our customers who bought from us will be satisfied with the tyres they have chosen.

MyCarForum

The event also saw over 70 car owners from Singapore’s number one automotive community forum, Mycarforum.com attending. Twenty lucky members from MFC had the opportunity to attend a private ‘Tyres 101’ lesson from Mr Adrian Thio, General Manager of Tyrepac, who covered topics from the different types of tyres to the importance of tyre rotation. Five lucky participants also walked away with various gifts sponsored by Tyrepac.

We will like to thank everyone who attended and helped to make this event a success. We hope to see everyone back for the next “Carpark Tyre Sale”. More details will be provided in due time. Looking forward to seeing you at the next tyre sale!

1st Car Park Tyre Sale

2009-05-19T11:16:00.004+08:00

Tyrepac is hosting a "you-can't-miss-it" carpark tyre sale May 22nd to 24th 2009 at Turf City.

This first of its kind car park sale will offer a great selection of tyres from numerous brands including Goodyear, Yokohama, Dunlop, Firestone, Kumho and more. Rims and other various automotive accessories will also be available at fantastic discounts.

Event Details
Date : 22 May 09 (Friday) to 24 May 09 (Sunday)
Time : 10:00am – 5:00pm
Location : Turf City car park (near Giant supermarket). 200 Turf Club Road. Singapore 287994

Amber Road

2009-03-26T09:18:00.007+08:00

The Land Transport Authority (LTA) has fixed the divider at the common accident area along Amber Road, as you can see in the photos below.

Temporary cones placed to alert motorists.

New sign alerting motorists of the divider.

Tyrepac Malaysia Soft Launch

2009-03-25T10:14:00.001+08:00

Tyrepac Malaysia have soft launched, check out the website and provide us with your views & comments!

http://www.tyrepac.com.my

Key issues to address in the near future

2009-03-21T12:00:00.000+08:00

Unfortunately, as much as the title suggest. I will not be able to say what these issues are exactly and what should and can be done to ensure an enterprise continue to prosper over this difficult period and what can be done to capitalize on the better times. We know for sure the present global economic situations will definitely be reshaping the tyre industry. The general questions we could be asking ourselves are perhaps;

1. Excesses from China
How will the excesses in China, way beyond local demand, affect the global supply and pricing situations? This question can be further digested, and an analysis of individual product category is required. But I think this is my crystal ball guess;

· The number of manufacturers will diminish particularly the ones who have poor cash flow
· We may even see some of the big ones go under for mismanagement and over expansion- a result of bad cash flow management.
· The ones who will prosper will probably be restricting themselves in size and cutting back on unnecessary expansion. The better ones will concentrate on product specialization be it in TBR, PCR, LTR, or even OTR.

2. The American Market
How will US tyre market, dominating practically a quarter of global tyre demand evolve? Will SUVs and light truck demand really start to diminish, and if so, how will this mutation pen out? Will this mean better and further penetration of Asian car make in US, and if so, what are the new preferred car models since it affects tyre size mix?

· The American market will always dominate, and I doubt the few remaining manufacturers will disappear. Some tie up will bound to happen and the consolidation will result in cost cutting and perhaps produce a leaner and better organization
· I do not think the US market, particularly the LT and SUV demand will diminish. It may be scaled back in demand over this period, but I am sure when better times are here, the demand will resurface.
· Asian makers will penetrate US this period with economical car makes and may swing part of the SUV and LT demand into saloon cars. The size mix may change slightly but should not be too drastic.
· In this sense, I think Asian auto makers may be in for a smoother transition over this tough period compared to American manufacturers. When I say this, I am also making reference to the tyre manufacturers and the situation that may unfold for them.
· Tyre manufacturers will naturally push out fewer patterns and have cross functional patterns that perhaps cater both to the demand of an average car owner as well as the owner who needs his bigger car size replacement.

3. American tyre manufacturers
What will become of American tyre plants which have skewed production to SUVs and light truck? What is the cost of transforming existing plant structures from producing SUVs and light truck to producing more passenger or even commercial tyres?

· The cost structure of the US based manufacturers, and the fact that Asian makers will be making bigger inroad into the US markets will simply mean the US makers will be forced to scale down in terms of size and further concentrate on a specific SUV/ LT tyres.

4. Automobile demand
How will the definite drop in global new automobile demand over the next few years affect tyres required for OEM? Will the excess created by this drop in OEM tyre demand further place more excesses into the replacement tyre market?

· Excesses will force closure and stoppages and makers are expected to shoulder the burden of overheads. In the case of prolonged stoppages, closure may be inevitable. The combination of stoppages and closures, a measure of last resort, will hopefully balance out reduced demand.
· The replacement market will be there, but competition (until the reduction of supply balances reduced demand this period), prices will be driven down and we should witness downward pressure on all raw material.
· What will happen to consumer demand over the next two to three years, when economic situations are expected to be at its worst? What will happen to retailers and distributors, particularly the large ones, who have geared themselves to the good times two to three years back?
· Distributors, or at least those that I know, particularly the larger ones are in dire situation of having to cut cost, lower overheads, stock cautiously, and prepare for a period of reduced demand.
· Consumers will be cautious and demand for higher end products will slacken.

5. The 3 big markets
The global demand for tyres can generally be classified into 3 big markets- US, EU, and Asia. Together they each take up an approximated a third of market demand.

The automotive markets are in disarray, and practically all automotive makers are either stopping or cutting production. This sudden reduction in OE will shaft supply into the aftermarket we have not witness before.

We also have to understand that this phenomenon of a global crack is never before witnessed, and the historical growth in demand has driven an excessive expansion of production capacity.

Parting words
· Further integrations of major players- acquisitions and mergers will happen over next 2/3 years
· Chinese manufacturers will go through a period of “big acquiring small” either voluntarily or involuntarily
· Chinese will dominate TBR with lower end and in the near future mid range products, major players will dominate higher tier product category. While mid tier will predominantly be the realm of Taiwanese, Korean makers.
· A few Chinese manufacturers will appear as a player in the budget UHP market.

This is the final post by Ler as he discusses the trends of the tyre industry. Ler Hwee Tiong is Managing Director at Tyrepac Pte Ltd .

The Trends

2009-03-14T13:00:00.000+08:00

In my recent conversation with Itochu, Continental, Pirelli, Goodyear, and some of the biggest stockiest in the region- some trends are pretty obvious.
1. Manufacturers are beginning to realign product lines
2. Stockists are contending with tighter credit and practice caution in purchase
3. Smaller retailers or retail chain remains relatively stable as of now, but big retailing players are feeling the heat from hot properties secured, and high lease properties.

You would have noticed that I relate all incidences to the impact created to the manufacturers. Unfortunately, manufacturers end gets the repercussions of market upheavals.
1. Tyre manufacturers go through particular hardship during economic down trends. This fact is very closely linked to the fact that automobiles are luxury items for many countries. And during down trends, the car is a luxury we can do without. In countries which cannot do without a car, the US for example, people switch their buying habits or delay buying urges. We have already witness how this impact is so eminent and already auto makers are reacting by either shutting production plants, or realigning production. We may have to examine the role of automakers a little more to understand how this impact will turn out.

2. Tyre manufacturers are also hit hard because they are raw material reliant, capital and labor intensive.
a. When the times are good, raw and related material rises with the good times. Manufacturers rarely can capitalize much on the up swings since majority of price adjustments cater to rises in raw material.
b. When the down swings come, manufacturers are handicapped by intensive capital invested and poor efficiencies due to capacity cut backs.

3. When the economy weakens, the entire sales channels stop stocking beyond required and consumers become rational in purchases. The artificially inflated demand disappears, and manufacturers are left wondering what happened. We are already witnessing this phenomenon in progress. From past trends, prices will start to collapse and moving further south when raw material prices come down. The market demand at the retailing end is there, but the trading channel and distribution channel stops or slow down purchase. By chewing further, we know;
a. OE demand drops drastically creating excesses into the replacement market
b. Weakening of domestic markets further create excesses
c. Export/ trading activities minimized as traders become cautious- whatever price level.

4. Extreme up and down trends, are however also opportunities. The Asia financial crisis in 1997, saw various countries with currencies in a state of imbalance vie-a-vie other currencies. Indonesia had its Rupiah value halved practically overnight to a low of about Rupiah 12,000 per American dollar. Opportunists and we did see many, descended into Indonesia and practically clean out all tyres from Indonesia- selling them into countries with stronger currencies.

5. Those who do not align well with the conditions of this down trend may be in for some serious awakening. Realign products, product lines, product categories. Already as we speak, tyre manufacturers of Chinese and Korean origin are reacting with aggressive price reductions. SRI in the mid 90s launched the LeMans range of product, which transcended the budget and tuning range, and the launch coincided with the bad times. Consumers took to it immediately and this product in my memory, sold extraordinarily- not because it was a great product, but because it was a product which came in when times were bad, and was a product consumers feel was fairly priced.

6. Be ready to capitalize when the good times are here again, and if past trends serve us right, could be in three to five years time. We witness how Goodyear has done exceptionally well in this aspect based on the patterns launched during the “good times”. From a product planning stand point- I think Goodyear has done exceptionally well.

Ler will discuss key issues to address in the near future in his final segment on Trends of the tyre industry. Ler Hwee Tiong is Managing Director at Tyrepac Pte Ltd .

Update on Amber Road accident area

2009-03-09T12:00:00.002+08:00

The Land Transport Authority (LTA) has responded with regards to our highlighting of a common accident area along Amber Road.

“We wish to share with you the current traffic scheme at Amber Road is not yet completed.

“Our contractor has taken care to alert motorists of the presence of these new dividers by placing those orange traffic cones at the end of the dividers.

“Apparently, the cones must have been removed which caused the dividers to become a hazard. We have since informed our contractor to replace the cones.”

Relevance of crisis to the tyre industry

2009-03-07T12:00:00.000+08:00

Crisis of the mid 80s
We have seen how the economic situations in the mid 80s nearly drove various global manufacturers like Goodyear, Continental, and Dunlop into dire situations. Goodyear in the late 1980s was the target of takeover, and if not for intervention by the US government may have been sold way back then.

Dunlop since being acquired in 1985 by BTR, has been divested to various “owners”-in the US market, to Goodyear. In Asia, Dunlop in large part belongs to SRI.

On the contrary, we have seen how these same manufacturers prospered during the recent past few years.

Crisis of the 90s
Continental was in the doldrums prior to 2000. Prices of tyres in the mid 90s were under the most extreme of downward pressure. Demand for raw material was poor. Each European country were each his own, with Japan in a stage of recession, and US even though was beginning to grow, was trying to find its footing amidst the growing technological innovations in computing, telecommunications, etc.

Case of OTR tyres
Take the case of Off the Road (OTR) tyres used primarily for mining and other industrial uses. Back in the late 80s and early 90s, prices of minerals and raw material were low primarily as a result of poor demand. Mining activities were also minimized since further harvesting of raw material and minerals would put downward pressure on prices. OTR tyre prices then were concomitantly under downward pricing pressure. Many of us would also remember how manufacturers and distributors struggled to profit from manufacturing or distribution of this product category.

The reverse of this scenario was true over the past five years when raw material and mineral prices were at its peak, and mining activities were at full momentum. Demand for OTR tyres push prices never witnessed in the past decade. Law of demand and supply came into force and we witnessed the speed existing and new Chinese manufacturers, in a plethora of OTR production. We all know the technically demanding nature of OTR production would mean many of these manufacturers will be short-lived. I could be wrong.

The cyclical demand of raw material and minerals, which is determined by the global economic situation thus also affect the demand of the OTR tyre. A simple fact, but often overlooked.

Crisis of today
The present credit meltdown is probably to an extent which we have not witness before, the closest would probably be the great depression.

To quote Wikipedia;
“The Great Depression was a worldwide economic downturn starting in most places in 1929 and ending at different times in the 1930s or early 1940s for different countries. It was the largest and most important economic depression in modern history, and is used in the 21st century as an example of how far the world's economy can fall. The Great Depression originated in the United States; historians most often use as a starting date the stock market crash on October 29, 1929, known as Black Tuesday. The end of the depression in the U.S is associated with the onset of the war economy of World War II, beginning around 1939.”

We saw the great depression stretch across two decades; let’s just hope that this time around, without the onset of war and other related issues back then, the upswing will come sooner. We can however be certain that China, and India will be playing host to a better recovery of Asia.

Now Dunlop South Africa belongs to Apollo, and DMIB now belongs to Continental. Toyo and Bridgestone are now in cooperation. Falken belongs to SRI. And these are just to name a few.

Ler will next talk about the trends of the industry in relation with the crisis. Ler Hwee Tiong is Managing Director at Tyrepac Pte Ltd .

Trends of the tyre industry

2009-02-27T12:00:00.002+08:00

A review of past Economic cycles
The tyre industry has seen the good and bad times, but the good and bad times usually closely linked to the regional or global economic situations. As far as my generation is concerned, Asia had its first economic corrections in the mid 1980s.

Who could have forgotten the currency crisis in Asia in 1997? What was supposedly a simple free float of the Thai Baht resulted in a near collapse of all Asian economies, and affecting countries as far flung as Brazil.

The year 2008 will definitely go down in history as a year the global financial system was practically on its knee. My personal thought about how this entire episode will turn out is quite contrary to the beliefs of many. I think the consumers today are just raring to see another round of positive growth. I also feel the consumers of today are a lot more forgiving towards the negatives of an economy but will dive in during positive times. It may take a few years, but it will be over and life will be back to normal before we know it.

As a gentle reminder, let me assure you that the current American situation is nothing new. In the early and mid 1980s, the S&L (Savings and Loan) crisis which saw a collapse of more than 700 saving and loan associations in the United States cost more than USD160 billion, of which more than USD120 billion was paid for by the US government.

Ler will explore how the tyre industry has been affected in his next post by looking at these key few cycles - between mid 1980s, to the mid 1990s and 2008. Ler Hwee Tiong is Managing Director at Tyrepac Pte Ltd .

Common Accident area along Amber Road

2009-02-25T12:00:00.004+08:00

Five accidents have taken place along Amber Road in the past week or so, with the right side of the vehicles hitting the road divider after the Marine Parade roundabout. This road actually narrows after the roundabout and we advise drivers to be more cautious when driving along this road. Luckily, all the accidents did not result in any injuries. But all the vehicles had at least one tyre on the driver side damaged.

On the morning of 25th February, one unfortunate driver hit the divider, and had to tow his vehicle to our office. Fortunately, there were no vehicles around, as his car swerved left as it hit the divider. From the pictures, you can see the impact, with one of the wheels severely damaged. Tyrepac assisted by changing his tyres and wheels with the Tyrepac mobile service.

We believe that the reason behind the frequency of accidents in this location is because the road actually narrows after the vehicles enter from the roundabout. And the lack of an “arrow signboard” at the start of the divider resulted in many drivers not seeing it. We hope that drivers will take note when driving through this road.

We have already written to LTA in regards to this and will keep everyone posted.

** Update 1st March 2009 **

from lostgt on the VAGSG Community:

Another one around this area is at the bus-stop outside CHIJ Primary. SBS buses need to cut across 4 lanes to get the other side and turn right into that road beside Tao Nan. I've seen it happening more than 10 times in the last 5 years whilst travelling up and down that stretch.

Tyrepac Media Launch

2009-02-21T12:00:00.003+08:00

For more pictures of the event, please visit our Facebook group!

Budding Entrepreneurs Launch Asia’s First Tyre Retail Portal

2009-02-19T15:00:00.002+08:00

Backed by $2 million in seed funds, Tyrepac Pte Ltd is set to launch the portal’s services to consumers in Singapore, China, Malaysia, Thailand, South Korea and Hong Kong by the first half of 2009.

February 19, 2009, Singapore – Today marked the official launch of Tyrepac Pte. Ltd., Asia’s first tyre retail portal that is set to revolutionise the tyre industry in this region. Backed by S$2 million in seed funds from various investors, Tyrepac will be launching its services throughout the region starting with Singapore as its headquarters. Tyrepac will expand its services to Malaysia, South Korea, China, Hong Kong and Thailand by the first half of this year.

Mr Ler Hwee Tiong, Managing Director and co-founder of Tyrepac, said, “There will always be a demand for tyres since every motor vehicle, old or new, will need to have their tyres replaced depending on usage and driver requirements. In today’s competitive marketplace, we want to be able to provide motorists with a single platform that is convenient, has a comprehensive range of tyres, and offers transparent pricing for all products so that our customers can truly enjoy one-stop service that meets individual needs.”

Apart from offering a comprehensive range of tyre brands and sizes, Tyrepac offers complete price transparency and caters to all types of motorists - from the budget-conscious motorist to the motoring enthusiast. Being an online portal also means motorists can select, compare and purchase tyres that best suit their individual motoring needs from the comfort of their homes and offices, saving time and money.

“We noticed that there was a lack of price transparency amongst local retailers and garages and motorists would have to visit several stores to ensure they get the best deals and tyres that they wanted. Tyrepac will be able to bridge this gap by offering motorists the perfect platform for price and product comparison at one single and convenient location. This is the first time such a service is made available in this region,” added Mr Ler.

Tyrepac also provides a first-of-its-kind mobile fitment service where customers can have their tyres changed at their doorstep. Tyrepac has specially-equipped Mobile Fitment Vehicles that will travel to a customers’ home or office to service their vehicles and change their tyres onsite. The Mobile Fitment Vehicles are also equipped to provide lubricant servicing.

Lynn Tan, an architect by training, one of the early customers of Tyrepac since the online portal was soft launched in Singapore in November last year had this to say about her experience with Tyrepac, “Having a service that is convenient and saves me time is important to me being a busy professional. I was impressed when all I had to do was enter the model and make of my car, purchase the recommended tyres and a spanking new set of tyres were delivered and replaced right at my home!”

The web portal’s intuitive and easy-to-use interface makes it very simple for users to search for tyres based on stock dimensions by car models, tyre brands or specific tyre dimensions. Tyrepac consultants are also available through phone or email to provide expert advice for motorists who have more enquiries on the best tyres for their car.

Apart for purchasing tyres, customers can read and post reviews on tyres, and find pertinent information on tyre related matters. Other value added services on the portal includes allowing customers to interact with each other through an online forum.

Tyrepac is now online at http://www.tyrepac.com/ or contactable by phone through its customer hotline number at 1800-(TYREPAC) 8973722.

- END –

About Tyrepac
Registered and headquartered in Singapore, Tyrepac is Asia’s first and largest online tyre retailing site. It was developed to enable consumers in Asia to have a central platform to check and compare tyre brands, patterns, and prices.

The company is expanding the portal’s services to consumers in China, Malaysia, Thailand, South Korea and Hong Kong by the first half of 2009. Plans are also in the pipeline to expand the portal’s services to other major Asian cities.

Tyrepac is funded by SPRING Singapore under the Logistics Capability Development Programme.

Roll with Wheels Asia

2009-02-09T17:25:00.002+08:00

Rolling along is Wheels Asia, check out their news profile on Tyrepac in the February 2009 issue!

The Discerning Eye

2009-01-17T01:10:00.001+08:00

More often than not, the opening line of introduction when you run into people would be what are you up to. Working, and the follow-up would evidently be where at?

Tell them Tyrepac - and you would inevitably get a puzzled look with a “huh”?

I usually open with a “I sell tyres online”. It is met with a discerning look at times, how do you actually sell tyres online?

In an age whereby you can buy cars, property and the mix at a click of your mouse, it should be relatively less surprising to see tyres being hawked online. It is not a novelty in the US or in Europe, where they have actually done so for a couple of years. There are a handful of Singaporeans who actually take the trouble to purchase tyres & rims through these websites and get them shipped to Singapore!

Tirerack in the US allows you to purchase tyres and ships it to you, fitting them up thereafter is up to you. Tyrepac actually takes the entire concept of buying tyres online a step further, in actuality it is a simple 3-step process.

Search for the tyres you want – either by the car you are driving; or for those with more advanced knowledge – via the size of your tyres
Select where you want your tyres changed – at a list of Tyrepac authorized fitment centers, or through the revolutionary Tyrepac Mobile Service whereby our mobile truck will go to the location of your choice to do fitment for you.
Make payment online or offline. Online options include Credit Card or through PayPal. Offline payment methods would include cheque or bank transfer/remittance.

The entire concept brings about more convenience - eliminating the need to go around and source for places to change tyres, variety – by offering over 10 brands at a central location (most tyre shops carry 2-3 brands on average) and transparency with all prices displayed as it is (tyre shops traditionally never list their prices).

The Internet has revolutionized the World we live in, and it has certainly revolutionized the way we sell tyres.

This is an introduction by Linus Koh on the concept of how Tyrepac works. Linus is in charge of online sales & operations at Tyrepac Pte Ltd.

If I Were an American Automaker Part 2

2009-01-10T16:49:00.000+08:00

Strategic approach

Mergers and acquisitions (M&A) are attractive options, but not necessarily the best. I will probably not focus too much attention at M&A unless they have a unique operating model, which caters well to the local or surrounding economies.
I am not sure how the American legal system works exactly, but the way a person is compensated for spilling coffee on herself does not make much sense. And seeing how my ex-American colleagues work before, shows way too many unnecessary bureaucracies in the decision making process. I would work like a local in countries I operate in.

Product concentration

I will not forego the American market completely, but instead I will definitely be looking at one or two models of light truck/ SUV which crosses between economic and mid-end luxury- which is well built, well design, well trimmed. It has got to push the benchmark of value for money.
I will look at pushing out a couple of right and left hand drives salon models for US, EU and Asia- and made in US, EU or Asia. The American makes still appeal, especially at a time when car owners want to be differentiated. The absence in Asia is actually a bonus factor. But it has got to present itself as a good value for money option again, perhaps a slight premium but nothing more. It also has to push limits, with a change in American built quality.
I will create ONE good luxury model that caters well to the global luxury market. One car that pushes limits of all luxury limits in the 7 series and S class league. One make that says the American car maker will surpass the Mercedes Benz and BMW of this world. I would not go into the Bentley and Rolls Royce category, because it takes history and heritage to be there and US makers I doubt is there yet.
The Americans are great marketers and if these couple of models can be built right for once, and position well in the minds of people during these tough times, will carry them a long way.

Technological edge

I will for once convince myself and the staff members that we need to go out and be technologically on par in this game. I may not be the one with the knowledge, but I will not be snobbish. I will speak to the Germans and the Japanese, and hammer some cooperation in the green car, electric car, and clean fuel arena. If it means opening up my sales channel and network, so be it. I rather be in the game then out.
I will look at the teenager- the high school going group, the college going group who past this economic gloom would have worked for a couple of years and ready to spent his money on his first car. It may be a car that is wired, with a printer and mobile devised in-built. It may be a car that transcend home and travel in a simplistic “uncaravan” way. Or it may simply be a car that is totally driver free, to enable him/ her luxury to read and work while on the move. Better still, it may be a car that is “green”, high speed wired, and hands free.

Parting words
What is said could be gibberish, but it may for once mean something to the top echelons spending 50% answering to shareholders, and making reports- which from history again, show that it does not help.

This is article 2 by Ler Hwee Tiong, Managing Director at Tyrepac Pte Ltd in his 2 part-series on what he would do if he was the US Automaker.

If I Were an American Automaker Part 1

2009-01-03T16:43:00.002+08:00

I had just last month, wrote about why the auto makers in US should not be bailed out. I might as well say what I feel can be done (assuming they will be restructuring for the future).

Assumptions

I doubt the US’s affection for light trucks and SUVs will ever disappear. It may for now tapper down in demand, considering the difficult economic situations.
I feel that the American’s cost base will never be on par with Asia or Asian manufacturers.
The US, EU, and Asia are key geographies of growth for any auto manufacturers- further broken down, I would briefly say the following countries are vital:
a. US- America and Latin America
b. EU- Russia, UK, and targeted W Europe
c. Asia Pacific- China, India, Australia, New Zealand, SEA
Number of automakers should remain relatively unchanged. Some may fail, others taken over, some may merge, and other smaller makes may disappear- but global demand is there, just waiting for the good times to come.

Actions
Human resource

Face it, not many Americans know Asia. Asia is no longer the “Far East”- which I was shocked to hear speaking to some American ex-colleagues before. I would probably be hiring and entrusting many more Asians to undertake the key positions of Asia Pacific instead of continuously assuming Americans can do the job in Asia. And please, hiring Asians does not mean hiring in US those Asians who have been there for a decade or more working in American firms.
If you ask me, I do not fully agree with the “American” way of rewarding the senior executives of the company. I would like to be in their shoes but it does not make practical sense. Look, history has shown that few if not none of these senior executives performed miracles during economic down times. I would take a serious 30% out of these executive pay and allocate it to finding good resources in developing countries that we are operating in.

Geographical concentration

Yes, no one can deny the US market is practically one quarter of global demand. But relying on it as heavily as the American manufacturers have shows how vulnerable it can be. I would start to relook at orienting at least 30%-40% of total sales towards Rest of World (ROW) outside of US. This concentration would probably be towards countries mentioned in my assumptions.
I am just assuming American automakers are not doing exceptionally well in Latin America, since Latin America is probably like Indo China countries. A small population of “haves”, and a large population of household trying to put food on the table. I would start thinking about manufacturing relevant products in these countries on a smaller scale, and catering to the relevant surrounding countries.

This is article 1 by Ler Hwee Tiong, Managing Director at Tyrepac Pte Ltd in his 2 part-series on what he would do if he was the US Automaker.

2008-12-29T13:10:00.000+08:00

Parting Words

2008-12-27T01:20:00.000+08:00

I have in many ways unjustly simplified the tyre business in this article. But many others who join the industry particularly senior executives, seem to think it is about simple data and numbers. We could go on exploring the various facets of the tyre business, what to look out for, and what to do, and what not to do. What is however important is to be aware that the tyre business looks simple, and sounds simple, but taken to another level is a myriad study of Sociology, Economics, Business, Art, and Engineering.

The fact of the matter is the internet is already here to ensure anyone who wants to know more can know more. The distributors and retailers who traditionally think it is simply about price and size could be in for a surprise soon. The very fact that some of the European and American internet retailers have suddenly grown to the size they are reflects this fact. Consumers are reading about what they want over the internet before deciding. I am surprised the internet is not utilized in a bigger way for educating, marketing, or selling tyres- particularly in Asia.

About Hwee Tiong, Ler
Ler, 38, graduated with a merit degree from the National University of Singapore in 1995 majoring in Economics and Geography. He worked for four years with a Malaysia listed distributor, of which a year was spent in Myanmar. He subsequently joined a Singapore listed distributor when for a year, he was heading the retailing department, before packing off to Hong Kong for five years to oversee the North Asian operation. His last job was in Shanghai with an American manufacturer as Sales Director of the Asia region. He recently relocated to Singapore with his family and started Tyrepac, an internet based retailing concept, after being captivated by the power of the internet for years.

This is the final article by Ler Hwee Tiong, Managing Director at Tyrepac Pte Ltd on his 7 part-series on Selling and marketing tyres- How difficult can that be?

Views on the US Automakers

2008-12-18T11:24:00.002+08:00

The impending bail out of the US automakers should not happen, and it is not that I do not empathize with the number of job losses that could result because of one. If a bailout is handed out, it still will not address the fundamental problems. These are my takes on the situation.

The US automakers had it good with a sizable domestic market. A certain make and model can continuously be on the production line.
This has resulted in a situation where they never have to look out of US, to gain further penetration in other markets- which is smaller, and may be a lot more varied in requirements.
The US cost base will never possibly be on par with Asian makers, not over the next decade at least.
The cost base of US will then mean price per make versus other makers in the same class to be higher, and unless the US maker can produce something technologically advance, or visually better designed, or has superb build quality- it will not convince buyers. Unfortunately, US make of cars do not meet any of these mentioned criteria.
You could say the marketing of the US makers creates a desire, but desire fades away when you need to visit the workshop once too often.
So they had a head start in China, with early entry, and were doing well for the past decade. But the present market is by now way too diverse to have them operate it the “US way”- in mass production with minimal variations.
You could argue a sudden switch by the US makers to “greener” make of cars, or more technologically advance build of cars- but have not the Japanese, and European been at it for years and years?

A bailout now will delay the need for a proper restructuring of the US makers, which in my view is long overdue.

This is an article by Ler Hwee Tiong, Managing Director at Tyrepac Pte Ltd about the current situation of the US Automakers.

Tyrepac Launches Mobile Fitment and Oil Change Service

2008-12-17T11:08:00.002+08:00

Tyrepac have launched the mobile fitment service, providing consumers with an entirely new platform to fit up their tyres. On top of our present island wide fitment stations, consumers can now opt to pay a nominal fee and select to have their tyres or oil changed at a location of their choice.

The additional convenience of being able to fit up tyres at home or even at work is Tyrepac’s concept of bringing convenience to consumers who shop online.

Tyrepac gets Hot on HotStuff!

2008-12-16T16:03:00.004+08:00

Tyrepac gets hotter week by week, check us out on the December issue of Hot Stuff Magazine!

The Engineering of tyres

2008-12-13T01:16:00.000+08:00

We have seen tyres evolved from the earlier days of tyres with tubes and comprising primarily of fabric and nylon, to present day tubeless tyres with construction comprising steel cords and rayon. We have seen past tyres made of rubber to present day tyres made of silicon compound, and other synthetic rubber. We have seen tyres moving at a maximum speed of 30km per hour back then, to present day speed capability in excess of 340km per hour.

I do not know the details that have gone into engineering a tyre. I know a simple fact that these tyres have gone through tremendous engineering, which warrants us to pay specific attention when selling or marketing a tyre. The sales channels have to know, the consumers too should be educated on it.

This is article 6 by Ler Hwee Tiong, Managing Director at Tyrepac Pte Ltd in his 7 part-series on Selling and marketing tyres- How difficult can that be?

Tyrepac is featured on Torque!

2008-12-10T14:57:00.005+08:00

Tyrepac is featured on the December 2008 issue of Torque Magazine. Get your copy today!

Black Rubber

2008-12-06T01:01:00.002+08:00

Tyres are an unknown quantity to many, including myself, other than the general brands that have been embedded in your mind via advertisements, and the huge signboards that precede tyres shops. Who can forget the unmistakable Michelin mascot, Pirelli calendar girls or the Bridgestone tyres that the F1 race cars fly by with?

Not many stop to think the compounds that goes into a making of a tyre, the different treads that affects performance, noise and control, the extensive sizes available, the not so beautiful patterns that no one is able to see, and essentially, what makes a tyre tick.

Tyre shops in Asia also seem to be a different model altogether from their counterparts in Australia or other parts of the World. The very first impression of tyre shops are those of uncles with black sodden hands wheeling the tyres around, often situated at the foot of old shop houses. While this still holds true, the dynamics are slowly changing, as overseas conglomerates come in with their vision of how tyres should be changed.

As I’ve heard, the tyre industry is not a glamorous business, not shady, but mired in a very traditional means of business, staying relatively unhindered by the evolvement of technology, but not for long. The Internet has eliminated boundaries and borders, and opened a Pandora’s Box of endless opportunities. The tyre industry will also undoubtedly not be able to avoid this wave of evolution.

Personally, I know nuts about tyres, not even knowing the basics of how to read tyre sizes, so stay with me as I proceed along this journey to discover the marvels of the only point of interaction between your car and the roads, and you will understand that there are more to tyres than the mere black rubber that it is.

This is an introduction by Linus Koh on his maiden voyage into a whole new industry. Linus is in charge of online sales & operations at Tyrepac Pte Ltd.

Press Release: Singapore SME Tyrepac Develops Asia’s First and Largest Retail Portal for Tyres

2008-12-05T18:58:00.001+08:00

Registered and headquartered in Singapore, Tyrepac is developing Asia’s first and largest online tyre retailing site.

It was developed to enable consumers in Asia to have a central platform to see and compare tyre brands, patterns, and prices. Tyrepac removes the mystery of replacing tyres by being transparent, and at the same time, educational.

Upon purchase and payment of the desired tyres through the Tyrepac website, consumers can conveniently choose any of their fitment stations located throughout the country to get their tyres fitted. A call centre is also readily available to take any questions. Call 1800-TYREPAC (1800- 8973722), or e-mail info@tyrepac.com.

Tyrepac will soon also operate a mobile fitment and oil change service. For a small flat fee, consumers can have their tyres and even oil change at a location of their choice- at home or at work.

Tyrepac received funding support from SPRING Singapore under the Logistics Capability Development Programme.

The company is expanding the portal’s services to consumers in China, Malaysia, Thailand, Korea and Hong Kong in end March 2009. Plans are also in the pipeline to expand the portal’s services to other major Asian cities.

Tyrepac launches search for tyres by car make and model

2008-12-01T14:28:00.002+08:00

We are pleased to announce that Tyrepac has upgraded its website to include a search for tyre by the car make and model you drive. Simple log on to our website, and click on “Buy tyre” or the “Singapore flag”, and select the car you drive.

With this function in place, TYREPAC has successfully made tyre shopping a truly simple process. Tyrepac is probably the first in Asia to offer such a search function for tyres.

Tyrepac will soon be launching Tyrepac MOBILE SERVICE which caters to the busy executives who would rather have their tyre changed, and engine oil replaced at home or work. The search for motorcycle tyres and accessories will also follow shortly. Watch out for these new services!

Drive safe for your loved ones!

The Art of tyres

2008-11-29T01:19:00.000+08:00

Using the passenger tyre as a reference point, I feel the need to just talk about how the tread designs of tyres have since evolved into a form of art, but the art of selling and marketing however seems to be lacking way behind.

Design evolution
What used to be simple ribs and blocks, is now an abstract concoction of slits and slash, tapered corners and flowing lines. The traditional design for commodity sizes used to center around the “wave” pattern, which is good for mileage and promotes low rolling resistance, and most importantly gives a good ride quality and facilitates rotation. The traditional design for good wet and dry performance used to be the “directional” pattern which prevents aquaplaning, is reasonably good in the dry albeit compromising on the comfort level. In the recent decade, we saw the emergence of the “asymmetric” tread design, an in between of the wave and directional design. It combines the comfort factor of a commodity tyre, and the performance factor of a directional tyre.

Tyre design is a maze
If you combine the number of brands available in the market, with the number of patterns available from each brand, it is quite a maze for consumers who suddenly have to buy tyres once every few years. In Asia, it is made worst because tyre retailers do not have prices labeled, and also because recommendations are usually centered on what they have in stock- which could be heavily bias.

A good friend of mine, Gerald Wee who is in the legal profession, in a recent conversation demonstrated this point perfectly. He had issue with a European asymmetric make of tyre, compared to a present set of Japanese directional make of tyre. He claims that not only is the European make much higher in price, it does not even grip as well. My first few questions naturally was whether he drives hard and had encountered issue with the tyre on a wet day. His profile in the end naturally does not blend with an asymmetric design- which is suppose to give reasonably good performance in wet and provide a good comfortable ride. These factors in an asymmetric tyre naturally were not what he wanted.

Matrix for consumer tyre requirement
I suppose the art of tread design has progressed tremendously, and I believe each new design, pushes the performance of tyre further. What is lacking is however the education of our end consumers, and the professionalism of the tyre retailers. If only we can have retailers understand the need and characteristic of our consumers, and tie in a brand/design/budget to their requirement. Better still, if only manufacturers in the tyre industry can come up with a matrix to profile the consumer based on his or her characteristics and budget so that the best option of tyre is presented to him or her.

This is article 5 by Ler Hwee Tiong, Managing Director at Tyrepac Pte Ltd in his 7 part-series on Selling and marketing tyres- How difficult can that be?

The Business of tyres

2008-11-22T01:16:00.003+08:00

The study of business is a combination of studies in the field of accounting, marketing, economics, human resource management and etc.- basically, a field of study which aims to equip someone with the capability to be in business, or manage a business. What then, are some of these relevant “business” related matters, a young executive joining the industry, or a senior executive from another industry should be aware of?

I always claim that the tyre business is probably akin to many other businesses except that the product is tyre. Wee Kok Wah of Stamford Tyres Singapore used to say he is attached to the tyre business because he has tyre dust in his blood. His rational for saying that is probably the fact that, at an average of five percent net returns on investment (optimistically), it is not a sexy industry. Compare it to the Microsoft and Google of this world; it may not even make any business sense to be in the tyre business.

Financial aspect
In recent years, I have met and gotten to know many senior executives with finance background running tyre companies- Lawrence Seawell, President and CEO of Hercules Tire in US, being one. The experience he since had managing Hercules Tires would make the tyre business an acceptable business. But I am sure there were many others, particularly from other industries, who fell off their chairs looking at the financial figures of a tyre company. That is when unusual decisions are made to make the figures better.

How could an industry, which demands so much in capital investment, particularly in stock and logistics, make so little profit? The case is amplified for manufacturing of tyres, which calls for investment anywhere between USD 15 million to USD 100 million for a new plant- depending on the product category to be manufactured. This would bring us to lesson one of knowing the tyre business- managing expectations of a tyre company.

A look at how most of the listed manufacturers and distributors have performed in 2007, practically makes it a fact that net earnings hover in the 5% region (optimistically). I would say there are exceptions, but these exceptions probably operate the tyre business slightly differently. A friend I got to know recently, Michael Welch of Blackcircles.com, an internet based retailer in the UK registers net margin in excess of 10%.

Human resource management
Often enough, I hear and have personally encountered issues with hiring and retaining young executives in the tyre industry. The fact is that it is not attractive to be seen in the tyre industry- being associated with the dark and greasy garages. Of course, over the years, this association has gotten better, but I remember how as a fresh graduate, armed with a reasonable degree, I had my ego beaten to pulp by the retailers I was trying to sell tyres to. Through the years, I understood that tyre is a product in a business, like computer hardware is a product, like mobile phone is a product. It is the intricate knowledge of the skills involved in managing the tyre business which differentiates a good from the average manager or proprietor. How I wished this fact could have been pointed out to me from day one.

Terry Smith, owner of Exclusive Tyre based out of Queensland Australia, would be the epitome of a great proprietor cum manager. A true lover of the Australian outback- he changed my perception of a 4x4 tyre. The knowledge he has, and the simplicity that he is able to convey in selling 4x4 tyres, makes him stand out from others. An educational road trip we made together to Fraser Islands on 4x4 vehicles left me with an impression of someone who loves a product he is selling and marketing. How I wish I was around more people like him.

The point is this, the tyre industry is not for everyone, and there is no point hiding this fact. Appreciate the veterans in this business; the wealth of knowledge accumulated in them will assist in riding the tough times. Appreciate the ones who love to be in, and shorten the agony for those who would rather be out. And when he is in, and has the potential, educate him, and expose him.

Marketing of tyres
I know this segment will generate the wrath from marketers of the world, particularly the experienced marketers who join the tyre industry aiming to be unique. I am the last to claim a wealth of knowledge in marketing. I simply hope to reflect the mindset of a typical motorist.

Tyres unfortunately have its importance placed rather low in priority in the minds of many motorists (enthusiasts excluded). How can we blame them when a tyre change typically happens once every one to three years? It is expected to perform the simple task of containing air pressure, and carrying the weight of the vehicle and its content- goods or passengers. This brings me to the first point, the reason why marketing should first and foremost be to educate the tyre sales channels- the traders, distributors, and retailers. It is only when these channels are well educated, that the consumers, when they do need to be educated, can be. Marketing in this instance is therefore no magic- training and educational literature, point of sales material, product literature, etc.

I would say some of the relevant media and events for motorists include automotive magazines and publications, automotive events and shows, and car showrooms. In recent years, the internet is becoming a critical channel for communicating to the consumers. The importance of the internet channel definitely deserves an independent research. But beyond the show cars, pretty models, and fireworks, what is important would still be educational literature, point of sales material, product literature, and etc.

I would say motorsports peaks as the pinnacle of tyre marketing. It enhances development, and pushes the limits of tyres. It serves as an excuse to further splurge on more show cars, more pretty models and more fireworks. Given that there are still marketing money left at the end of these, keep them flowing back to the sales channels.

Marketing unfortunately is marginalized in my context, but my only intention is only to highlight the importance of getting down to the basics- build the channels of tyre sales, invest in relevant advertising media and literature to educate the public, and hopefully have some cash left for extravagance- motorsports. It sounds simple enough, but often, I see marketers creating news through the strangest ideas. This is not to say that imaging and positioning a product or brand, and all the textbook principles of marketing is not important.

This is article 4 by Ler Hwee Tiong, Managing Director at Tyrepac Pte Ltd in his 7 part-series on Selling and marketing tyres- How difficult can that be?

The Economics of tyres

2008-11-15T01:13:00.000+08:00

The basic of Economics states that demand should equate supply to maintain price stability, and any deviation from this principle creates imbalances resulting in price instability.

Case of OTR tyres
Take the case of Off The Road (OTR) tyres used primarily for mining and other industrial uses. Back in the late 80s and early 90s, prices of minerals and raw material were low primarily as a result of poor demand. Mining activities were also minimized since further harvesting of raw material and minerals would put downward pressure on prices. OTR tyre prices then were concomitantly under downward pricing pressure. Many of us would also remember how manufacturers and distributors struggled to profit from manufacturing or distribution of this product category.

The reverse of this scenario was true over the past five years when raw material and mineral prices were at its peak, and mining activities were at full momentum. Demand for OTR tyres push prices never witnessed in the past decade. Law of demand and supply came into force and we witnessed the speed existing and new Chinese manufacturers, in a plethora of OTR production. We all know the technically demanding nature of OTR production would mean many of these manufacturers will be short-lived. I could be wrong.

The cyclical demand of raw material and minerals, which is determined by the global economic situation thus also affect the demand of the OTR tyre. A simple fact, but often overlooked.

Currency fluctuations
The value of money, another topic discussed in depth in the study of Economics, is also reflected through the sales and marketing of tyres. The Asia financial crisis in 1997, saw various countries with currencies in a state of imbalance vie-a-vie other currencies. Indonesia had its Rupiah value halved practically overnight to a low of about Rupiah 12,000 per American dollar. Opportunists and we did see many, descended into Indonesia and practically clean out all tyres from Indonesia- selling them into countries with stronger currencies.

We have also seen how the economic situations in the past nearly drove various global manufacturers like Goodyear, Continental, and Dunlop into dire situations. Goodyear in the late 1980s was the target of takeover, Continental was in the doldrums prior to 2000, and Dunlop since being acquired in 1985 by BTR, has been divested. On the contrary, we have seen how these same manufacturers prosper during the recent past few years.

The present economic situation
The present global economic situations will definitely be reshaping the tyre industry. The general questions we could be asking ourselves are perhaps;
a. How will the excesses in China, way beyond local demand, affect the global supply and pricing situations? This question can be further digested, and an analysis of individual product category is required.
b. How will US tyre market, dominating practically a quarter of global tyre demand evolve? Will SUVs and light truck demand really start to diminish, and if so, how will this mutation pen out? Will this mean better and further penetration of Asian car make in US, and if so, what are the new preferred car models since it affects tyre size mix?
c. What will become of American tyre plants which have skewed production to SUVs and light truck? What is the cost of transforming existing plant structures from producing SUVs and light truck to producing more passenger or even commercial tyres?
d. How will the definite drop in global new automobile demand over the next few years affect tyres required for OEM? Will the excess created by this drop in OEM tyre demand further place more excesses into the replacement tyre market?
e. What will happen to consumer demand over the next two to three years, when economic situations are expected to be at its worst? What will happen to retailers and distributors, particularly the large ones, who have geared themselves to the good times two to three years back?

The understanding of tyre, be it product, category, or companies, is so much intertwined with basic understanding of Economics. The next couple of years will be trying times, and in my opinion will create another round of shake up at least equivalent to the last round of upheavals a decade or so ago.

This is article 3 by Ler Hwee Tiong, Managing Director at Tyrepac Pte Ltd in his 7 part-series on Selling and marketing tyres- How difficult can that be?

Partners Meeting

2008-11-12T22:31:00.005+08:00

Our convention with our overseas partners on 11th November 2008 turned out to be a great success, with each re-affirming their commitment and dedication to making Tyrepac a success throughout Asia. We also had an opportunity to give a preview to local magazines, Hot Stuff & Torque.

We would like to take this opportunity to thank all that attended and stay tuned as Tyrepac launches around Asia!

The Sociology of tyres

2008-11-08T01:01:00.002+08:00

Let me quote from Wikipedia: “Sociology (from Latin: socius, "companion"; and the suffix -ology, "the study of," from Greek λόγος, lógos, "knowledge" [1]) is by definition the scientific study of society and human behavior. Thus, sociology is used to interpret human behavior using theories to the understanding of human behavior. ”

Manufacturer’s culture
Rest assured this article is not going academic. I bring sociology into the picture because far too often, I see new sales people and distributors heading the direct opposite of what a manufacturer hope to achieve. My point is this, the sales and marketing of a tyre brand or make depends on the culture of the manufacturer i.e., we have to understand the culture and behavior of the manufacturer. I dare say all manufacturers deviate in some ways from each other- culturally. Each distributor or retailer may also then deviate in culture according to the brand(s) undertaken.

We all know Michelin thrives on cultivating a disciplined sales and marketing channel. No distributor or retailer is successful undertaking Michelin overnight. Their capability must be consistent and demonstrated. We know Bridgestone’s determination for a business when they want it. We see growth and success of Cooper’s 4x4 tyre in the replacement market. We see Hankook desire for greater share in the passenger car tyre market. We see Yokohama’s and Maxxis’s patience in their slow and steady growth, but handled with consistency in marketing presence. While I comment on their behaviorism, I am not saying this is good or bad, I am merely saying that for relationships to prosper, all parties involved must share the same “behaviorism”.

We have to understand what we are selling and marketing, and to do this, we need to understand the culture of the manufacturer, the sociology of the manufacturer.

This is article 2 by Ler Hwee Tiong, Managing Director at Tyrepac Pte Ltd in his 7 part-series on Selling and marketing tyres- How difficult can that be?

Tyre Service Charges

2008-11-06T15:44:00.007+08:00

Passenger Car
Van & Light Truck Tyre	Price

Tyre Change
15” and below	$20 per tyre
16” – 17”	$30 per tyre
18” – 19”	$40 per tyre
20” and above	$50 per tyre

Puncture Repair
External
All Sizes	$20 per tyre
Internal
17” and below	$40 per tyre
18” – 19”	$50 per tyre
20” and above	$60 per tyre

Wheel Balancing
Off Wheel Balancing	$20 per tyre
On Wheel Balancing	$30 per tyre

All prices recommended by Singapore Motor Tyre Dealers Association
Updated on 1st Nov 2008

What is involved in selling and marketing tyres?

2008-11-03T17:51:00.003+08:00

Simply price and specification?
We all know that selling or marketing any product can be a simple function of specification and price? I have to agree that simplistically, selling or marketing tyre can be about specification and price. And when this function is right, a transaction can be concluded. The traditional trading channel thrives on this simple assumption. A good friend of mine, Mike Zhang of SD International in Shanghai, registers sales in excess of USD50 million annually by simply trading. There are many other examples of successful companies who started trading as one of its portfolio of business activities, and still maintain an active portfolio in trading for example Sumitomo, Mitsubishi, Itochu, and Mitsui- just to name a few from Japan. I do not even need to quote the magnitude of their trading activities to demonstrate how trading can be such a successful channel.

I will perhaps write an article talking about the various sales channels in the tyre industry in time to come.

How complex can it be?
If you have the patience to follow me to this stage of my article, I want to show you how it can be a whole lot more than simply price and specification- where Sociology, Economics, Business studies, Art, Engineering, and a whole host of specialized disciplines are involved. In my opinion, it is the combination and understanding of these disciplines in the simplest form, which will truly make a good manager, salesperson or marketer.

This is article 1 by Ler Hwee Tiong, Managing Director at Tyrepac Pte Ltd in his 7 part-series on Selling and marketing tyres- How difficult can that be?

Selling and marketing tyres - How difficult can that be?

2008-11-01T21:01:00.003+08:00

Introduction
A simplified version of this article was first given as a lecture to a gathering of fellow colleagues in January 2008. My only intention then was to caution against anyone selling or marketing tyre to marginalize its complexity. I say that after 13 years in the tyre industry, a short period compared to some of the veterans I met over the years, and after having witnessed some superiors and colleagues from various other industries join the tyre industry.

Three gentlemen who influenced me immensely regarding veterans in the tyre industry are Edward Readings, formerly VP International Operations of Cooper Tires, Francis Lim- Director of Wah Seng Singapore, and Wee Kok Wah- President and CEO of Stamford Tyres Singapore.

Kindly regard all opinions to be that of mine and not intended for malicious intent. I would appreciate if you could gain my consent before you utilize this article in any way. Should you find any matter discussed in this article to be offensive or contrary to the truth, I am contactable at:

Telephone: +65 6345 7100
Address: No. 12, East Coast Road. Singapore 428723
E-mail: htler@tyrepac.com

This is an introduction by Ler Hwee Tiong, Managing Director at Tyrepac Pte Ltd on his 7 part-series on Selling and marketing tyres- How difficult can that be?

Adrian Thio

2008-11-01T17:28:00.000+08:00

About Adrian Thio
Adrian graduated from the Singapore Management University in 2005, with a Bachelors degree in Business Management (BBM), majoring in Finance.

Upon graduation, Adrian joined the tyre industry, starting out as a management trainee in one of the SGX-listed tyre distributor in Singapore. During his time there, he helped to set up and managed an online tyre-selling portal for consumers, with the management of 5 retail outlets as well. Adrian also spent a brief period in Malaysia as well, managing retail sales as well.

In 2006, Adrian joined a top 10 global ranking tyre manufacturer, based in Shanghai, as a Sales Manager for Asia-Pacific region. During his period as a Sales Manager, Adrian brought in new customers from more than 10 countries across Asia Pacific region and increased the company’s distribution network in the region.

Linus Koh

2008-11-01T01:14:00.001+08:00

About Linus Koh
Linus has been doing websites since 1997, culminating in a wealth of experience in Internet Marketing. Linus used to run a network of websites, including Red Haven (Manchester United), SoccerFlash.com, iSoccer Network, Cantona Connection, and an array of other websites.

Ler Hwee Tiong

2008-11-01T01:01:00.001+08:00

About Hwee Tiong, Ler
Ler, 38, graduated with a merit degree from the National University of Singapore in 1995 majoring in Economics and Geography. He worked for four years with a Malaysia listed distributor, of which a year was spent in Myanmar. He subsequently joined a Singapore listed distributor when for a year, he was heading the retailing department, before packing off to Hong Kong for five years to oversee the North Asian operation. His last job was in Shanghai with an American manufacturer as Sales Director of the Asia region. He recently relocated to Singapore with his family and started Tyrepac, an internet based retailing concept, after being captivated by the power of the internet for years.