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GERMANY
Reifen Göring: Loyal to Bandag for 35 Years
will use Bridgestone or Bandag tread on Bridgestone casings, and Bandag on non Bridgestone casing. In the ‘other casing’ sector we have to take what we can get Conti, Goodyear, Michelin etc.. We also retread some Chinese casings as we have found some Chinese casings to have consistent good quality, but certainly not every Chinese brand is suitable for retreading. We need to be assured of quality before we will use them for retreading.”
Has the growth of tyre manufacturer interest in retreading impacted upon the market? For example, has Conti and Goodyear drawing in their own tyre casings had any impact on quality casing availability? Has it had an impact upon sales? “It is too early to say what impact Continental’s retread operation will have on our market. We have always been competing with Continental retreads from other retreaders being sold through Vergölst outlets (Conti’s Equity Chain in Germany) so perhaps there won’t really be that much impact. In Germany the market is very mature and for a retreader to increase sales he has to take market share from another player. However we are more customer friendly than any Equity and we can meet change quickly. We know our clients and we can ensure that they get the right tread on the right casing – and we can turn stock around quickly.
“The availability of casings definitely changed for the worse within the past years. We can be sure that industries like Goodyear and Conti, which collect their own brand casings, are one of the main reasons. However, we found our ways to have the casings we need for our customers and we are confident about this for future.” Bandag is more expensive than some other retread offers. “So sometimes for us it can be a little bit difficult to match both quality and price to our customers. They are all resellers and they can buy from other suppliers if they wish. So we have to get across the message that our Bandag product is better value for money and gives better service than our competitors. We can do this by showing our product’s track record and we can always show that our cost per kilometre is a real cost saver in the long term, even against cheaper retread brands and new budget Chinese tyres.
“We know that we have competition and in the low budget sector there are many retreaders producing 4-5,000 tyres per year who build to a budget. We do try to compete but we have a premium product and we don’t offer low-grade products merely to match the whole range of budget requests of the market. It is more important for us to retain the high quality standard and reputation in the longer term. “Last year Bandag launched Protread
as a budget line to tackle the low cost alternatives in the market. Protread is still a better quality tread than most low budget brands but it allows us to go to the budget conscious clients with a retread that is closer to their needs. The other market for Protread is those who have high damage rates, such as on refuse wagons that sustain high wear and tear doing their rounds in tight urban streets.”
Every company has to grow to survive, what plans do you have for Reifen Göring to expand? “We do have plans to develop our market share. With the economic climate as it is people are more restrained in their spending and we need to examine the market to see where we can find room to grow. We have a capacity of 30,000 tyres per year in a good year, currently we are on schedule to increase actual production year by year..”
It goes without saying that the issue of tyre testing and tyre labelling is at the back of everyone’s mind: So what thoughts does Reifen Göring have on the subject? “Frankly, labelling is for sure an issue for us as retreaders, even though not on a daily basis and won’t be until 2016. Still we always follow the current status of the Retyre Project, which is making an important job for our retreading industry. Besides we also hope that by that time Bandag will be in a position to give its partners an answer to labelling. Similarly with rolling resistance and fuel consumption, this is an area where the tyre manufacturers are working to find a satisfactory solution to the challenge. The independent retreaders are also working on a solution and we shall have to wait and see what the future brings. However, I am sure that Bridgestone Bandag will have a solution that will help us meet all the future requirements for labelling, rolling resistance, fuel consumption and later in by-pass noise.”
The Reifen Göring plant is compact and patently a busy operation, it has all the usual features of a Bandag plant, Shearography, nail hole inspection, buffing ( two buffers, one the latest fully automated version with enhanced controls and safety features), skiving, filling and repairs, manual tread application and curing. The plant is tightly laid out with very little room to spare. Tyres are currently labelled and bar coded but Reifen Göring has held back on adopting laser labelling as the brothers believe that an RFID solution to casing management is not too far off and they believe that will be much more reliable an investment for the company.
Reifen Göring in Meschede is a thriving retreader and retail tyre outlet. The retread operation has been a Bandag franchisee for 35 years and the Göring family have taken the Bandag branding to heart. The offices are predominantly Bandag blue and
hill.
So where does Reifen Göring sell its retreads? “Our main market is selling to tyre centres and distributors who have a regular clientele for retreads.” says Jörg. “Our biggest customers are new tyre suppliers, and they are the
yellow. The office is detailed in blue and yellow and Bandag branded models line shelves, and awards and recognition plaques from Bandag are on prominent display. Customers visiting Reifen Göring are left in no doubt that they are dealing with a Bandag franchisee.
Jörg Kerstholt, one of the three brothers who share the management of the company, says, “We take a real pride in our partnership with Bandag. We are a small regional retreader and being partnered with Bandag allies us with the largest tyre manufacturer in the world and the quality and support benefits that brings.
“We receive technical support with our equipment, new and old, and we can make use of their supply service to ensure that we are able to provide the best quality retreads to the best quality standards expected in the market.”
Reifen Göring is now into its fourth generation. Ingrid Kerstholt (born Göring), the mother of Jörg, Ralf and Stefan, handed the company over to her sons in January 2014.
Jörg Kerstholt is in charge of Sales and Marketing, Ralf controls the administration whilst Stefan is in charge of production, technical services and equipment. Jörg also handles the company’s IT needs and Internet presence.
Meschede is a small town, there are a few local industries but its location is relatively rural compared to the urban sprawl of the Dusseldorf/ Essen/ Duisberg triangle. The biggest local industries would be Honsel, Veltins Brewery and Warsteiner Brewery about 20km away over the
contact with the fleets. We do have some fleets with 200 or so trucks with whom we deal direct, but normally we don’t sell direct as that would involve competing with our retail clients.
“We have about 300 customers that we supply regularly within a 200-300 km radius of Meschede, some maybe only take 20 tyres per year, others take more than 500 pieces per annum.
“We deliver by our own trucks. We have four trucks and two Sprinter vans, all liveried with Reifen Göring and Bandag branding. For our key customers we will visit one week and collect casings, and when we return the following week we deliver their completed retreads. We try to work with largely customers’ own casings, but we do, as everyone does, need supplies of casings to top up the stock. Of course the usual issue is with the likes of 315/80R22.5, which is the single most popular casing size and there is always a challenge to find a decent number of these casings at the right price. We are always willing to talk to suppliers with these casings in stock. “Normally, we have sufficient to be able to supply everyone by moving casings around where we can, but new supplies are always of interest.” Now that Bandag is part of the Bridgestone corporation has that impacted upon casing quality and quantity? Does Bridgestone or Bandag help by bringing in their own brand tyres for retreading by its Bandag partners? “Not in the way that other manufacturers do for their retreading operations. However, we
32 Retreading Business