“Hankook was always a fast follower, but we are now first to market with new products and innovations,” Shawn Denlein, Hankook Tire America Corp. vice president of sales told the crowd gathered at the tiremaker’s annual Partners Day event, hosted this year in Cancun, Mexico.
“Our foundation has been built through the independent tire dealer channel. Because of their loyalty, we can give them a good product with good programs where they can enjoy good profits.”
Denlein updated the 180 dealers, distributors and media on Hankook’s drive to become a Tier 1 premium tire company, as well as the launch of the all-new Laufenn brand, new Hankook-badged products, and an overview of its technology and innovations goals.
In addition, Denlein announced plans for the creation of a Hankook dealer council.
While overall global sales were flat in 2014, coming in at $6.4 billion, Denlein said the results were indicative of current market conditions. Those results, though, do not deter the tiremaker’s plan to position Hankook as a high Tier 2 – or even Tier 1 – brand, while introducing the new Laufenn brand as an alternative in the lower second tier or high among the so-called “value” brands.
Denlein said the Laufenn G Fit AS touring and the X Fit HT SUV/CUV lines, which will be produced at the company’s Indonesia plant, will be available by March 1. Around two months later, the Laufenn S Fit AS UHP all-season and the X Fit AT SUV lines will be available to dealers; the planned winter Laufenn I Fit Ice remains scheduled for the 2015-16 winter season.
On the Hankook side, new in 2015 will be the Kinenergy GT H436 grand touring tire, a replacement for the H426, which is slated for a May launch. The Kinenergy GT H436, with a UTQG of 540 AA, will be available in H and V speed ratings, and cover 15- through 19-inch wheel diameters.
The Hankook Winter I-cept Evo 2, the next iteration of the I-cept Evo, will be released in time for winter tire orders. Available in both H and V speed ratings, the line will cover 16- to 20-inch wheel diameters.
Looking at further product developments, Denlein told dealers that Hankook will continue to invest 5% of revenues in R&D initiatives. R&D activities make up 10% of the tiremaker’s global workforce. “One way to be a top tier tire company is to make investments in production, technology and innovation.”
Hankook now has five technical centers focusing on testing, with OE fitments a top priority due to the many qualifications required. The Technodome, Hankook’s new R&D and testing facility scheduled to open in 2016 in South Korea, will have 90 laboratories and will become the main research center for the company. Denlein said one goal from this new facility is to develop a “Gold Certified Leadership Program.” He also said the company is looking at future tire technologies, including intelligent tires and airless tire concepts.
Hankook formally announced that it is working to create a dealer council for its U.S. market and expects to have the council seated in 2016.
Special guest keynoter Greg Olsen, tight end and all-pro with the Carolina Panthers, engaged attendees with the story of his single-minded pursuit of excellence. The result, he noted, was a quality career and quality experience, resulting from the delivery of a quality product.
As the son of a football coach who just wanted to play the game, pro football was not his grand goal. However, every decision he made was based upon achieving his near-terms goals, whether it was to start at the University of Miami or to leave a year early (with a degree) to play in the NFL. And the father of three spoke about his son, T.J., and the struggles his son faces with a heart defect.
Closing out the session, Denlein said Hankook sees the recent announcement of added duties to Chinese tires imported to the U.S as an opportunity.
“We don’t compete with Chinese brands, but where we see an opportunity is where retailers have to make choices going forward to consolidate their offerings to customers. We see more retailers being strategic with certain vendors, and we feel that gives us a good opportunity in terms of retail and even in the distribution channel, said Denlein. “They won’t carry as many brands, and they will look to be more strategic. In terms of what we are going to do, there is no difference.”
