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Bandag to expand under Bridgestone ownership

Bridgestone Corporation purchased Bandag, the world’s leading retread brand, in 2006 with European operations passing to Bridgestone Europe in 2008. Since then, all Bandag core operations have been fully integrated in the Bridgestone Europe organisation, with sales and field staff integrated in Bridgestone national sales companies.

Stronger retread service

The merging of Bandag activities brings significant benefits to Bridgestone. Retreading is an important service for commercial fleets – approximately 40% of replacement truck tyres in Europe are retreads – and the Bandag business raises Bridgestone’s capabilities considerably.

“Bandag has a very comprehensive range of products and technical services” says Gerry Duffy, VP Sales & Marketing, Bridgestone Europe “with strong positions in, for example, the ON/OFF-road and city bus segments. With the combined Bridgestone-Bandag retread package we can offer best-in-class solutions to fleets.”

Bridgestone plans to keep the current Bandag model unchanged with activities grouped under the Bandag “Six Gears” concept: products, equipment, value-added services, sales support, fleet programmes and business consultancy solutions. “The aim”, says Steven Janssens, Senior Manager in Bridgestone’s new Retread Franchise Operations unit “is to make Bandag business more complete and stronger”.

New brand structure

The new Bridgestone retread brand structure reflects this goal. At the top end, Bridgestone’s Qualitread range will be progressively renamed Bridgestone Retread, in line with the global branding strategy, and focus on providing the newest Bridgestone treads and compounds to the long haul, pan-European transport sector. Bridgestone Retread will also be at the top of the price spectrum, concentrating on cost-per-kilometre and mileage contracts.

The Bandag Premium Application-Specific range will be priced just below Bridgestone Retread and above the Bandag Standard line-up, which will be strengthened with the addition of Bridgestone patterns. “2010 will see 7 new products” says Janssens “including 2 new unique designs and 5 Bridgestone patterns.”

Distribution still growing

Bandag has more than 140 franchised dealers in Europe, including Qualitread dealers who have been converted since the merger, and plans to continue expanding the network. Although some Bandag dealers work with competitive tyre manufacturers, Bridgestone has no plans to change this. “We totally respect relationships with others” says Duffy; “Bandag is a business – not just a brand.”

With Bandag now fully integrated, Bridgestone sees strong growth ahead for its retreading business. “Bridgestone and Bandag retreads offer fleets comparable performance and mileage to new tyres – at a significantly lower cost” says Janssens. “It is also a good ecological solution, using up to 75% less energy and resources than making a new tyre, as well as reducing the number of tyres for disposal.”

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