Magazine for the professional tire industry
Issue link: https://mtd.epubxp.com/i/114173
Focus on industry More market share! Hankook reveals aggressive goals to dealers By Greg Smith I n the long-term, we want to have 12% to 15% market share in North America." Tat was the key point Hyun Bum Cho, chief marketing ofcer of Hankook Tire Co. Ltd., delivered to Hankook Tire America Corp. dealers who gathered in Cancun, Mexico, last month for the company's annual dealer meeting. Cho's candid presentation set a positive tone for the dealer meeting. Cho said he currently believes Hankook has about 5% share of market in the United States. His company has been adding capacity at a rate of 5% to 6% per annum, which he believes is well above the industry average. Cho also said the company is 80% certain it will our shares. We want to be a global brand and want drivers to use our tires. We do not want to be a niche (Ferrari) tire maker." Cho ended his remarks with a bold statement of intended growth: "We will become a global brand, and I might sound cocky, but I truly believe this." Te Hankook meeting, which was atended by roughly 200 people from 65 dealerships in the U.S. and another 11 dealerships from Canada, took place shortly afer the parent company had posted corporate sales of $6.4 billion for 2012, a 13.7% increase over 2011. Overall, the company had operating income of $836.8 million, up 65.7% from 2011. Goals for 2013 Shawn Denlein, Hankook Tire America's senior vice president of sales, was also upbeat in his comments to dealers. He said the company just had a 20% sales increase to $1.2 billion in 2012; the company also increased its market share. Denlein said the company has set the following goals for 2013: 1. deciding on the U.S. plant; 2. enhancing the company's "One" dealer program — although no details are being revealed at this time; 3. increasing Hankook's share of market to 5.4%; and 4. increasing sales to $1.4 billion. Shawn Denlein, left, senior vice president of sales, and Byeong Jin Lee, president, say the new Ventus S1 noble2 ultra-high performance all-season tire is the major product launch for Hankook Tire America Corp. this year. build a plant soon in the U.S, and it is talking with various state governments in this regard. Cho pointed out that Hankook views original equipment tire placements as very crucial to growth and to building Hankook's brand. He told dealers that OE ftments are a beter investment than running a $250 million consumer advertising campaign for brand development. New OE ftments are in the works, with the company interested in "German premium car ftments to increase 64 Te company is investing heavily in the launch of its Ventus S1 noble2 ultra-high performance all-season tire. Te tire debuted at the 2012 SEMA (Specialty Equipment Market Association) Show, but it wouldn't become available to dealers until March 2013. Te tire is W-rated, and will be available in 40 16- through 20-inch, 30- to 55-series sizes. Te line has a UTQG rating of 500/AA/A. Hankook is also looking to increase its presence in the winter tire market. It is launching a Winter i*cept iZ T-rated tire in 14- to 18-inch rim diameters. Te studless tire will come in 24 sizes. Te company also announced a second winter tire, the Winter i*Pike RS performance tire. It is T-rated and will come in 13- to 18-inch rim diameters with widths of 45- to 75-series. Tis studdable tire will come in 37 sizes. Denlein echoed Cho's comments about OE ftments. He pointed out a strong partnership with Ford and Lincoln brands in the U.S., along with Hyundai, Kia, VW, Chevrolet, GMC and Chrysler vehicles. In a private meeting with MTD, Denlein said OE ftments currently represent about 35% of Hankook's total business in the U.S. Te intent of the company is to keep the ratio at this level. Hankook is continuing to expand its "behind the plate" MTD March 2013