Despite having no previous Formula One experience, Kumho has signaled its intention to enter the sport in the near future.

The South Korean tyres manufacturer was widely believed to have written a letter of intent to the FIA earlier this year when it emerged that Bridgestone had decided to leave the sport at the end of 2010.

As everyone knows, Pirelli won the tender to be F1’s sole tyre supplier in 2011-2013.

However, Kumho’s chief executive Jong-Ho Kim told Tyres and Accessories magazine that it is at the pinnacle of motor sport that the young brand will demonstrate its technical abilities.

He revealed: “As we are a relative newcomer with the shortest history among the global top ten tyre makers, we need to compete in the global market with our technical power, and motor sports is the area where we can show off our capabilities.”

Kumho has already achieved success in the world of F3 and Kim said its setting its sights on Formula One.

“We already completed the development of F1 tyres in 2007 and now watch for an opportunity to enter into the F1 market as well,” he said.

Alex Kapadia, Operations Team

By Oliver Hall

Kumho is the latest tyres manufacturer to report positive results for the first half of the year.

It is the second consecutive quarter that the South Korean tyres manufacturer has achieved strong gains, with its revenue increasing 34% year on year.

Since entering into a debt work-out in January 2010, Kumho has returned into the black in the first quarter of the current fiscal year and has maintained its surpluses by recording a double-digit operating profit margin in the most recently completed quarter.

The company reports its debt ratio has fallen below 300%, the level before the work-out and an amount it says signals the results of its efforts for successful management normalisation.

Kumho states these positive business results can be attributed to revenue growth from the normal operation of its domestic and overseas plants, plus high seasonal demands, as well as the reduction of costs resulting from labor-management agreements.

During the second quarter, Kumho Tire recorded a plant operation rate of about 95%, which it says is the normal level. The company also recorded domestic sales growth and overseas sales growth of 4% and 7%, respectively.

Ju-Wan Hong, executive director of finance for Kumho, said: “The financial structure is rapidly improving, as we have successfully realised the management normalisation plan, and our competitiveness in sales and production is being recovered more quickly than had been expected.

“We can see the direct effects of our plan to improve competitiveness mainly in salary adjustment and productivity improvement, and we also expect recovery in the domestic market and continuing overseas demand.”

Kumho tyres had one goal in mind when they sponsored the Manchester United Tour 2010 - to boost sales.

The Korean tyres manufacturer hoped that teaming up with Man U would help them capitalise on the growing interest in football in the US and help them sell more tyres.

Rick Brennan, Kumho’s vice president of marketing, said: “This sponsorship has generated tremendous excitement for our dealers, our loyal customers, our new fans and also our employees.

“I’m confident that this excitement will lead to increased visibility for Kumho and increased sales for our dealers.

“We plan to increase our efforts in sports marketing programmes in the coming months and engage passionate fans at their events,” he added. “We will leverage the passion and enthusiasm that sports fans have for their teams to increase Kumho’s brand awareness and brand relevance.”

The tour began in Toronto, Canada, on July 16. Kumho executives and select dealers were on hand to witness Manchester United’s 3-1 win over Scotland’s Celtic FC. Additional stops in Philadelphia and Kansas City followed.

The last stop was in Houston, where Manchester United beat the Major League Soccer All-Stars 5-2 in the league’s annual All-Star game, which was televised live on ESPN.

Kumho received plenty of exposure for sponsoring Manchester United, arguably the most valuable sports franchise in the world.

Kumho’s parent company, Kumho Tyre Corp, has been a platinum sponsor of Manchester United since 2007. Its goal was to leverage the soccer club’s brand to increase awareness of the Kumho tyre brand in Europe and throughout the world. “The enthusiasm and passion that fans have for Manchester United is something Kumho Tyre Corp. hopes to cultivate with the Kumho brand,” said the company.

By Denna Bowman

Kumho tyres has earned a top plaudit from a leading consumers organisation in Australia.

The Korean company’s Solus KH 15 scored highly in the annual review and comparison of car tyres carried out by Choice.

The organisation rested tested 15 of the best selling 195/65R15 tyres on the Australian market in a rigorous independent tyre test.

Kumho’s Solus KH15 radial was awarded the second highest score, registering 78 per cent in the comparison of the most common tyre size for the small car class.

The Kumho Solus was one of four tyres ranked as a ‘Choice buy’ by the web site after considering performance in a number of different conditions.

The 195/65R15 is the tyre size used as original fitment size on popular models such as Toyota Corolla, VW Golf, Ford Focus, Mazda 3, Honda Civic and Kia Cerato .

The Kumho Solus KH15 scored highly across all of the testing criteria outpointing its leading competitors from European and Japanese makers as well as tyres from Korean and Chinese companies.

Choice carried out the tests using a Ford Focus and compared the tyres in a range of tests including dry cornering at 80 and 85km/h, wet cornering at 75km/h, dry braking at 50 and 80 km/h and wet braking at 50 and 80 km/h.

According to Kumho Tyres Australia CEO Edmund Cho, Choice’s independent and unbiased testing proves the benefit of Kumho’s intensive investment in research and development in tyre technology.

He said: “To have the Kumho Solus KH15 ranked so highly in a field of some of the world’s most esteemed tyre makers is testament to the efforts of Kumho engineers and designers.

“We know how good the latest generation Kumho tyres are and now Choice has given an independent tick of approval with a result which delivers tyre buyers added confidence in the Kumho brand and the tyres we market here in Australia.”

By Alex Kapadia

Pirelli have won the race to supply Formula One with tyres from the start of the next season, according to Italian media sources.

The Italian tyres manufacturer will be the sports sole tyre supplier from 2011, taking over from Bridgestone who are exiting F1 when their contract runs out at the end of the current season.

According to Autosprint and Italiaracing, Pirelli has been selected by the teams and F1 chief executive Bernie Ecclestone, beating rivals Michelin, Avon, Kumho and Hankook to win the contract.

Earlier this week Ferrari president Luca di Montezemolo was asked to name is preference. He said: “As an Italian I prefer Pirelli, but experience tells me Michelin.

“In the end it will be the same for everyone,” he said in an interview with La Gazzetta dello Sport.

Autosprint said Pirelli will be paid 1 million euros per team per season in 2011, 2012 and 2013, in exchange for identical attention and service and a range of just three compounds: soft, medium and hard.

According to the website Motorsport.com, the tyres will initially be in a similar 13-inch specification to the current Bridgestone product, with a longer-term ambition being a move to a low profile.

The decision is set to be confirmed shortly by the World Motor Sport Council.

Forget the political clambouring going on around the House of Commons, the big power struggle in the world of Formula One is who is going to be the new tyres supplier for next season.

A fourth tyres manufacturer has announced its decision to enter the race and join the other contenders revving up on the starting line.

South Korean tyres company Kumho has emerged as a late runner and have submitted their letter of intent to motorsport’s governing body, the FIA.

Michelin, Pirelli and Avon are already in contention to take on the role and in another amazing twist, there are also even reports that existing supplier Bridgestone may reconsider its decision to quit the sport.

Apparently, Bridgestone’s Formula 1 bosses are to make a renewed push to try and get Japanese company board members to reconsider the decision to quit the sport at the end of this year.

All in all, it looks like this is a race that will still be rumbling on long after the political parties have resolved their power struggle.

Alex Kapadia, Operations Team

Kumho tyres have teamed up with Manchester United legends Sir Bobby Charlton to teach kids about road safety.

Two other ex-players Andy Cole and Denis Irwin also threw in their lot in with the Korean tyres manufacturer to kick off the Play Safer campaign in the shadow of the Old Trafford stadium.

Play Safer is the only programme of its kind in the world. It uses the skills of professional footballers – such as vision, awareness, anticipation and control – to teach kids about road safety.

Children can collect 10 road safety skill cards featuring tips such as ‘Control it like Berbatov’ and ‘Play it safe like Van der Sar’.

John Thrupp, from Kumho Tyres which sponsors the Premiership team and developed the scheme with the Manchester United Foundation and Greater Manchester Police, said: “We are committed to helping children stay safe on the roads through initiatives such as Play Safer.

“Our affiliation with the club and our partnership with Greater Manchester Police for this event provides an excellent opportunity to raise awareness of road safety in a fun and engaging way.”

Sir Bobby, who attended the launch with the other ex-players, said: “As a club, we’ve always considered it our responsibility to make a positive contribution to the community. That’s why we’re proud to be getting behind the ‘Play Safer’ programme with Kumho Tyres.’

Ji-Sung Park, who features in roadside posters promoting the scheme along with Antonio Valencia and Patrice Evra, commented: “This is a fantastic way to teach children road safety whilst having fun playing football.”

For further information go to www.playsafer.co.uk

Denna Bowman, Head Office

By Denna Bowman

US motorists have been hit another wave of tyres manufacturers who have announced they are set to hike prices.

Nexen tyres will apply an 8 per cent price increase on all warehouse orders and June factory direct container production. The increase will apply to all sizes and patterns.

John Aben, Nexen’s vice president of sales and marketing, says the decision to raise tyre prices was based on “the rapid cost increase of raw materials and ocean freight.

Kumho will raise prices on all its passenger and light truck tyres up to 8 per cent from 1 June.

The company stated: “The unprecedented increase in raw material costs over the past few months have made it necessary for Kumho to implement this increase.”

The following month, Pirelli will increase replacement passenger and light truck tyre prices by 4 per cent effective from 1 July.

Bridgestone, Michelin, Goodyear, Continental and Hankook have already announced similar price rises.

Kumho tyres has teamed up with Manchester United and Greater Manchester Police to launch a children’s road safety campaign that mixes footballing skills with a road awareness campaign.

Play Safer enables kids aged between five and 11 to marry their love of football with the need for them to them stay safe in urban environments.

The campaign is anchored by a website (where children can download and print off collector’s cards featuring road safety and football skills tips from Manchester United first team stars) and promoted through advertising, such as the roadside poster featured here.

Within hours of launching the cards were apparently being downloaded in countries including the UK, USA, Australia, Nepal, Malaysia, Botswana, Russia and India.

Kuhmo is now said to be planning to take the initiative on the road to schools throughout the UK, before launching it in international markets.

Kevin Murphy, managing director of The Foundry, which developed the initiative, said: “The strategy we devised is far more than just a marketing campaign.

“The Play Safer scheme will play a huge role in improving the safety of young people on our roads by exercising with tips from their heroes.

“It’s very rare to be involved in something that might hopefully save the lives young children.”

Denna Bowman, Head Office

By Denna Bowman

Kumho tyres has been saved after creditors agreed to provide a new lifeline of $100 million in a debt restructuring programme.

Creditors will swap debts of 600 billion won for equities to keep the cash-hungry company afloat, while injecting 600 billion won in fresh capital. according to the tyres manufacturers main creditor the Korean Development Bank (KDB).

Ahn Yang-Soo, a senior director of KDB, said: “Creditors agreed to assist Kumho. We will switch company debts into stocks. We also will give additional capital to help the company manage its businesses.

“We think the rescue plan will provide Kumho the momentum to turn its business around.’’

According to a source at the Korean tyres manufacturer, the money will be used for the company’s plants in China.

Creditors also decided to reduce the capital of all shareholders, and let major shareholders take more responsibility, but declined to say how much it will be reduced.