Rallying round
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Michelin has not only managed to stay ahead of its competitors during the recession, it also claims to have helped its customers cut costs.
Words: Barry Dew If there's ever a time when you don't want Lobe selling a premium product. it's during a recession. Yet despite this. Michelin retained its leadership of the replacement truck tyre market in the VIC during 2009 — and says customers who have stuck to a Michelin policy have benefited.
Martin Covington. Michelin head of truck and earth mover marketing, says: "Fleets already running on Michelin have been able to enjoy the benefits of their investment during the tough times, without downgrading the spec of their tyres.
"We've had many instances where customers who had previously operated a new-only policy have started sending their worn tyres to our Remix plant in Stoke. Part of this reflects vehicle replacement cycles being extended. as more companies have to replace a Michelin tyre, whereas previously a vehicle might have been sold after three years, before the tyre needed changing."
Regroove rates have also increased, as more fleets take advantage of the additional layer of base rubber built into Michelin's truck tyres as standard. In 2007, approximately 43% of the worn casings received at Remix had been regrooved. By the final quarter of 2009, that figure had risen to 46%.
"Regrooving is a simple process that can increase longevity by about 20%, while also maximising the most fuel-efficient state of the tyre." adds Covington. "[The increase in regroovingj reflects the pressures operators are under to make efficiency gains."
While Michelin has been successful in retaining customers on their existing Michelin policies. Covington admits it has been more difficult getting new fleets to invest in tyres that might have a higher up-front cost than their existing policy.
"When the credit crunch hit, a lot of operators battened down the hatches, fitting budget tyres and low-cost remoulds, as well as cannibalising tyres from vehicles sitting idle in the yarcl.The net effect is that many hauliers have been left running on cheaper rubber that is, arguably, more prone to failure, wears out faster and doesn't have the same low-rolling resistance properties as Michelin. This means that fuel bills are likely to have risen, and they'll face significant replacement costs once the fleet is hack to full utilisation.•
Asera Transoort
AsprayTransport is a fresh convert to Michelin. The VVillenhall company decided to change its preferred tyre brand across its fleet of 300 trucks and 100 trailers in October 2009, coupled with the appointment of ATS Euromaster to fit and manage its tyres.
The transformation of its tyre policy is combined with a move to fitting remoulds for the first time, replacing the previous new-only strategy. Aspray has also started regrocving tyres on its 150-strong fleet of 7.5-tonne urban distribution vehicles a process previously reserved for heavier trucks and trailers in the fleet. The company is confident these changes will bring a raft of environmental, financial and safety benefits.
Operations director Ian Barclay explains: "Choosing the right tyres is fundamental to our business, as they literally keep our fleet moving. We trialled some Michelin tyres over a 12-month period and, compared with our existing Goodyear fitment, we recorded significantly increased longevity."
The new policy sees ATS Euromaster take over from Hi-0, with a brief to replace existing Goodyear tyres as wear dictates, with used casings returned to Michelin for remoulding at its Encore facility in Stoke-on-Trent. This allows Aspray to undertake a smooth switchover to a dual Michelin/Michelin Remix policy, while still benefiting from casing credits for its worn Goodyear tyres.
Commenting on the decision to fit remould tyres for the first time, Barclay adds: "We've previously fitted only new tyres to the fleet. so this marks a major change in the way we operate. Unlike many remould processes, Remix tyres are not just fitted with a new tread band, but new sidewall rubber facing from bead to bead. The process mirrors the way a new tyre is built, and we're confident they will deliver almost identical performance to that of a new Michelin tyre."
This change is being combined with a targeted regroove rate of 40% across its entire fleet, which will represent a significant increase in the number of regrooves carried out. All regrooving is undertaken onsite by ATS Euromaster, with a typical regroove delivering an additional 25% tyre life by using the extra layer of base rubber built into all new Michelin and Remix truck tyres as standard.
RG Bassett & Son
General haulier RG Bassett & Sons runs a fleet of 40 trucks and 85 trailers, and has operated a predominantly Michelin policy for more than 40 years.
You'd be forgiven for thinking that joint MD Ashley Bassett's loyalty to the brand stems from being located just four miles from Michelin's UK headquarters in Stoke-on-Trent.
"We're not a big advocate of being too complimentary about any of our suppliers, but we have grown to respect the overall quality of the Michelin truck products. That's why about 95% of our fleet is fitted with its rubber," says Bassett.
'We reserve the right to run test sets of competitors' tyres on different vehicles in our fleet. But in our experience, this serves to benefit Michelin as it reinforces the performance of its product. The fact that we've had no formal contract in place with 'Ilichelin, but it has remained our tyre of hoice for four decades, speaks volumes for the longevity, reliability, and cost effectiveness of the product." Bassett enjoys a family heritage in road transport that dates from 1897so it's no wonder it has the in-house expertise to get the best out of its tyres. The company carries out the majority of its tyre fitment and servicing in-house, fitting mostly Michelin XZE2+ and XDE2+ on its tractors, and XTE3 tyres to trailers.
Soon after joining the family business as fleet engineer in September 1968, Bassett would frequently regroove the fleet's Michelin tyres himself and the firm has followed Michelin's Four Lives package since its inception.
Today, the fleet engineer's role is undertaken by Paul Manser, who was promoted in September 2009 on the back of 21 years' service to the company. Commenting on the importance of tyre fitment, Manser says: "Our tyre policy serves the fleet well and we've had no reason to change. However, the transport industry is competitive, and you're only as good as the service you provide to your customers. So Michelin must ensure it stays ahead of the pack in every aspect of its product technology, service delivery and overall performance."