US tire manufacturers ‘on the verge of bankruptcy’

Australian tyre manufacturers are on the verge, after more than half a century of business under a US-led regime, to be sold off for the first time in their history.

Key points:Franchisee Peter McTague has been leading the bid to save the tire industry after more then half a decade of dominance”I think there are more people who would consider selling their business in Australia than there are here”Peter McTanceo has been the lead negotiator for the Australian Tire Franchisee Association (ATFA) and is leading the fight for the sale of the industry, which he says has suffered from a lack of competition and lack of support from the Government.

“We’ve had a period where the market has become so fragmented, there has been a lot of consolidation and people who have been left out of it are going to get it,” he said.

“They’ve had to get out of the business in order to build their own businesses and now they’re going to have to go through a process of reorganisation, which is going to put a lot more pressure on their businesses.”

In February, ATFA president Tony Stewart told the ABC the industry was in a “terrible state” and had “suffered from a great deal of deregulation”.

Mr McTange said it was time to move on.

“It’s a sad day, because I’ve been leading that effort for the past 10 years,” he told the Nine Network.

“The tire industry was on the brink of bankruptcy in the late 1990s, and we’ve been fighting tooth and nail to get the industry back on its feet, but I think there have been more people than there have had here, and I think that there are a lot fewer people than here who are prepared to sell.”

He said the ATFA was now “on the brink” of losing its majority in the Australian Industry Group (AIG), which represents about 70% of the nation’s tyre dealerships.

“I’ve spoken to many of the people who are in the AIG, and they are absolutely devastated, and there’s been a very large number of redundancies,” Mr McTageo said.

He said it would be “very, very difficult” for a new franchisee to compete with the US tire market.

“You’re not going to be able to compete in the US with all the support you have in the States, and you’re not really going to win any awards or anything like that, so I think the stakes have really been raised very high,” he added.

Mr McTurley, who is also a member of the National Motorists Association, said it had been “very difficult” to sell the industry to a new owner.

“To sell to a foreign investor you’re going have to be very, very tight and very, many, many concessions have to come to the table,” he explained.

“So we’ve had discussions with the AIC, and the American company has been very helpful in our negotiations, but unfortunately, it’s been difficult for the ATAC to work out how to get to that point.”‘

Unfortunate events’ have hit the industryMr McTuarley said the AFA had a “very good relationship” with the Australian Government and had been successful in pushing through legislation to ensure the industry had the “necessary support”.

“We have had to come up with a lot different arrangements to accommodate the requirements of the US market,” he noted.

“One of the problems we have is the regulatory framework has been so complex, and if you’re in the industry you’re very aware of the regulatory landscape and you understand how it works.”

And I think what we’ve just been through has been unfortunate events that have caused a lot disruption.

“He added that there was a lack to support from both the Government and the Australian industry.”

Our Government has done a good job of supporting us and protecting the industry,” he stressed.”

But I think unfortunately, we’ve got to come back to the Government, to the Australian community, and say, ‘we have to give you some concessions.’

“Mr McUnley said he hoped to see the ATAG “in a very healthy position” once the Australian market was sold off.”

If we can get to a point where the ATAA can continue to exist, I think we would have a very good chance of being able to get a fair deal with the Government,” he concluded.

Topics:business-economics-and-finance,business-news,industry,industries,government-and,trade,industreys-andfirms,government—business,government,australiaFirst posted February 08, 2019 09:36:47Contact Nick O’NeillMore stories from New South Wales