Dunlop Own 27 Distributors : Little-known Facts Revealed
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DETAILS previously unknown of the ramifications of. the Dunlop
Rubber Co.,. Ltd., are contained in the Report on the Supply and Export of Pneumatic Tyres of the Monopolies and Restrictive Practices Commission, published last Friday. The Commission's findings are outlined on pages 594-595 of this issue.] Dunlop are shown to own the following 27 distributing companies:—
Paarsham Tyre Co., Ltd., Hollingswarths Tyre Services Co., Ltd., W, R. Barnes and Co., Ltd„
Deng:tie Tyre Co., Ltd„ Briggs and Co., Ltd., Grimsby Tyre Co., Ltd., Harrogate Tyre Co.. Irtl„ Hatch's Tyre ,Co., Ltd., H. Lonsdale and Co., Ltd., Newcastle The House, Ltd., N. Ireland Tyre ServiLes, lid., Oliver: (Newcastle upon Tyne). Ltd., Rapid Tyre Services, Ltd., South tines Tyre Co.. Ltd., Thompsons (Carlisle), Ltd., IreFacilities. Ltd., Universal Tyre Co. (York). Ltd., Welsh Tyre Services, Ltd.. West of England tyre Services. Ltd., Yorkshire Tyre and Rubber Co.. Ltd., Keighlcy Tyre Services, Ltd., Walc:rigid Ty! c Services, Ltd., The Tyreinen, Ltd., Hood and Winrerburn, Ltd., Midland Tyre Co., Lid,, Tytes (Scotland), Ltd.. and Tyres (Scotland).
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The report states that Dunlop hold all the shares in the Marsham, Briggs and Scottish companies through nominees. These companies in turn hold all the shares in their subsidiary. companies. These facts are said to be known to only a few of the Dunlop principals and to the managing directors and accountants of the directly held companies.
Dunlop told the Commission that they did not control day-to-day workings of the Marsharn, Briggs and Scottish companies, but were consulted on all important financial matters. The trading policy was determined by Dunlop.
Companies in each group were not required to take a fixed proportion of Dunlop tyres, but 30-35 per cent, was regarded as a normal target. In 1952, 40.7 per cent. of the controlled companies' total sales were of Dunlop and India tyres.
In the original-equipment market, Dunlop in 1952 supplied 38 per cent. of commercial-vehicle tyres
Lump Sums for Makers
For many years the company have paid lump sums to some of their largest original-equipment customers at the end of each sales year, and after negotiating a contract for the next year. In 1952, these allowances totalled 1623,000, and varied in individual cases from £500 to £188,600. They were made in some eases to assist vehicle manufacturers in their export business, and in others Ill recognition of co-operative research.
In 1951-52, sales by Dunlop and the India Tyre and Rubber Co., Ltd., represented 47 per cent, of the total tyre sales. by value, in the United Kingdom. Of new giant covers supplied in 1953, 37.7 per cent. were Dunlop and India.
Dunlop are now producing remoulded tyres to the value of at least year, as well as controlling the output of the Regent Tyre and Rubber Co., Ltd., and Tyresolcs, Ltd., the two largest retreading concerns, and that of Tyres (Scotland ) Production, Ltd. In 1952, the Dunlop group were responsible for nearly 27 per cent. of the total value of sales of remoulds in the U.K.