Modern Tire Dealer - August 2015

THE INDUSTRY’S LEADING PUBLICATION

Run-fats:

TIRE MAKERS ADDRESS RIDE AND WEAR CONCERNS Smart fall car care: test every battery Turn your customer data into profit The latest SmartWay-verified retread products August 2015 | Vol. 96, No. 8 | $10 | A Bobit Publication | www.moderntiredealer.com

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Features 25 Turn your data into proft

Te Industry’s Leading Publication

Storing customer information doesn’t make your business money. Using it does

August 2015, Volume 96, Number 8

Departments 4 Editorial Safeguarding customer data is the real issue when it comes to tire registration

6 Online

News and navigation tools for MTD’s website

8 News/views Is Toyo’s Celsius in a new category? New tire offers year-round use, long tread life and winter-weather safety

18 Your marketplace

28 A fat performance for run-fat tires Tire manufacturers say they hear ride and wear complaints loud and clear, and they’re making improvements

40 Testing every batery in the fall is a ‘right-selling’ opportunity 48 Test the alternatives as wheel weight markets shif away from lead

Higher average ticket and strong traffc trends benefted repair shops

58 European notebook Supercar sales boost performance rubber: While defnitions vary, one thing is clear — HP and UHP tires are growing in popularity in Europe

60 Counter intelligence I worked for a legend: Parnelli Jones partnered with winners, and won

62 Focus on industry Pro-business and pro-dealer: That’s what the Latin American & Caribbean Tyre Expo is all about

66 Focus on industry

Commercial Tire Dealer™ 50 Making it happen Dealers must diferentiate their service and help feets overcome their biggest obstacle — how to save money

54 Nearly 60 retread products qualify for the EPA’s SmartWay program 56 Commercially viable

Mateer to the rescue: Specialty Tires of America almost didn’t make it to 100 years

68 Focus on industry Michelin replaces the LTX M/S2: The Defender LTX is a carbon copy of the company’s No. 1 LT tire, built with the stronger EverTread compound

70 Focus on industry Tire Pros University — A marketing lesson: Know when to play your trump card

72 TPMS Subaru Legacy and Outback 2005-2013: Use a grommet when reusing the transmitter

84 Your turn Tire registration: voluntary or mandatory? Readers respond

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3

Editorial

Safeguarding customer data is the real issue when it comes to tire registration andatory tire registration is one step Kane: “Tere’s always going to be the interplay closer to being a reality. Before recessof customer data and how it’s used. I don’t think ing for the summer, the U.S. Senate the manufacturers should be left out of the passed a long-term federal highway bill that, (loop). Knowing one way or another they’ve among other things, requires tire sellers to register got a recalled product is important, and whether tires at the point of sale. they have the customer information or it’s a scan It is hardly a done deal. Members of the U.S. that indicates they’ve got a recalled product, we House of Representatives still have to vote on it; get there in the same way. they, too, are on vacation until Congress is back “I’ll defer to the TIA and its dealers on how

By Bob Ulrich they handle the customer data... we don’t have to full strength Sept. 8.

In the interim, the Tire Industry Association a dog in that fght.”

(TIA) has vowed to fght it. Tat puts it at odds with Kevin Rohlwing, TIA’s senior vice president of trainthe Rubber Manufacturers Association (RMA), which ing: “Certainly now that the tire manufacturers are selling wholeheartedly supports puting the responsibility of tire direct to consumers here in the U.S., there’s going to be registration on the shoulders of tire dealers. some concern on the part of independent dealers. Tere Who will win? Tis isn’t a batle of good vs. evil. Te are also concerns about data security when you consider RMA believes the percentage of tires being voluntarily the number of brands that would be addressed. registered is too low for safety’s sake. As such, legislation “While the current regulations do prohibit the manumandating tire registration is the best option. facturers from using tire registration data for commercial TIA believes the RMA’s quoted percentage is very and marketing purposes, some of them may not abide misleading because it doesn’t take into account tire dealers by the law. who register the tires and contact the afected consumers “It’s going to become a question of how many places is this directly in case of a recall. data going to be contained, And that brings up a how secure is it going to question lost in all the be, and how reliable are rhetoric: Should tire dealthe manufacturers across ers be required not only to the board going to be in register tires, but also turn abiding by that law? that information over to tire “We would certainly manufacturers? support an independent Tire dealers have legitithird party that would be mate concerns about turning the keeper of the informatheir customer information tion and alleviate the real over to their suppliers. and genuine concerns by Goodyear Tire & Rubber Co.’s decision to sell tires online retailers about that information being misused, how it only adds to the atmosphere of mistrust. It’s not paranoia could be proved and how it would be investigated. By the if they really are afer you. time you’ve investigated it, the damage to the dealer has TIA recently enlisted the help of frequent adversary already been done.

Sean Kane to promote an automated process for tire recalls “It’s a very competitive marketplace, with a lot of people rather than mandatory tire registration. Kane, you may geting into the tire business right now. So there’s defnitely remember, is the founder and president of both Safety going to be some reluctance on the part of tire dealers Research & Strategies Inc. and Te Safety Institute. to turn over that customer information out of fear their Tey even teamed up for a July 21 conference call for customers are going to be marketed directly, which would the national media. Kane said the information needs to change them from sellers to installers.” go to the manufacturers.

“We cover independent tire dealers, and they are tellWhether or not tire registration becomes mandatory, I ing me they are nervous about giving all their customer like the idea of an independent third party being responsible information to manufacturers,” I said to both Kane and for collecting and safeguarding the data. ■ TIA representatives. “Tey fear the manufacturers will atempt to contact the tire buyers themselves. Is this a If you have any questions or comments, please email me concern at all?” Here are their abridged answers. at bob.ulrich@bobit.com.

M

Tire dealers have legitimate concerns about turning customer information over to their suppliers.

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MTD August 2015

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Online Website: www.moderntiredealer.com

MODERN TIRE DEALER

Publisher Greg Smith Greg.Smith@bobit.com (330) 899-2200 ext. 12, fax (330) 899-2209

Readers follow tariff saga

Editorial

Last month’s hot topic on www.moderntiredealer.com was once again the Chinese tire tariffs. MTD’s staff covered the situation in the news and in Editor Bob Ulrich’s insightful analysis in his B.O.B. blogs. Also of keen interest to our readers were the moves made by the tire industry’s big players including Monro Muffer Brake Inc. and Pep Boys — Manny, Moe & Jack. Here are the top 10 news items.

(330) 899-2200, fax (330) 899-2209 Editor: Robert J. Ulrich, ext. 11 Bob.Ulrich@bobit.com Managing Editor: Lori L. Mavrigian, ext. 16 Lori.Mavrigian@bobit.com Senior Editor: Joy Kopcha, ext. 15 Joy.Kopcha@bobit.com Associate Editor: Ann Neal, ext. 18 Ann.Neal@bobit.com

1. Chinese tire tariffs now are fnal 2. American Tire Distributors purchases Albert Tire 3. Who’s the biggest loser in the tariff deal?

4. Monro has many more tricks up its sleeve 5. Another twist: One tariff is on hold 6. DOC affrms tariffs increase rates for nearly all tire makers 7. Pep Boys to consider sale, merger options 8. What the vote means: Tariffs are not retroactive 9. Meet Michelin’s new LT tire 10. Goodyear juggles 5 issues to remain proftable

NAVIGATE

Production (330) 899-2200, fax (330) 899-2209 Art Director: Neal Weingart, ext. 14 Neal.Weingart@bobit.com Production Manager: Karen Runion, ext. 10 Karen.Runion@bobit.com

Sales

TPMS on demand

One hundred percent of vehicles manufactured in the U.S. since September 2007 have had a tire pressure monitoring system (TPMS). Through the years the tools manufactured to service the system have evolved to make it simpler and faster. Yet each vehicle still has its peculiarities. MTD’s monthly TPMS column (see page 72 in this issue) is presented to help techs through the servicing process. And since we began presenting the column in 2009 (via Mitchell 1 data), we have printed 70 vehicle service tips. All these articles are archived on our website. Simply go to the channel bar on our home page to Articles, scroll down to TPMS, and enter the name of the vehicle followed by TPMS. The vehicle’s TPMS service information, including applicable illustrations, will guide you through the servicing process.

Find TPMS warning indicators, reset procedures, tire pressure sensor relearns, scan tools, demounting/mounting procedures and sensor installation.

Total access — totally free www.moderntiredealer.com

South and Texas: Greg Smith Greg.Smith@bobit.com (330) 899-2200 ext. 12, fax (330) 899-2209 Midwest: Michele Vargo Michele.Vargo@bobit.com (330) 899-2200 ext.17, fax (330) 899-2209 West Coast: John Dyal /Te Dyal Company John.Dyal@bobit.com (760) 451-5026, fax (760) 451-5039 West Coast: Marianne Dyal /Te Dyal Company Marianne.Dyal@bobit.com (760) 451-9216 Automotive Aftermarket: Dan Tornton djtinc@gmail.com (734) 676-9135, mobile (313) 410-0945 Classifed Sales: Donna Stewart Donna_Stewart@cox.net (405) 260-1678, fax (405) 260-1684 Reprint Sales: Karen Runion Karen.Runion@bobit.com (330) 899-2200 ext. 10, fax (330) 899-2209

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MODERN TIRE DEALER (ISSN 00268496) (CDN IPM #40013413) (USPS #369-170) is published monthly by Bobit Business Media, 3520 Challenger St., Torrance, California 90503-1640. Periodicals postage paid at Torrance, CA 90503-9998 and additional mailing offces. POSTMASTER: Send address changes to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks for address changes to take effect. Subscriptions in the U.S. and its possessions, $65; Canadian, $99; Int’l surface mail, $99; Int’l airmail, $198. Single copies, $10, except the January Facts Issue, $30. Address all subscription correspondence to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks to receive your frst issue. Please address Editorial and Advertising correspondence to MODERN TIRE DEALER, 3515 Massillon Road, Suite 350, Uniontown, OH 44685-6217. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. For your information: We sometimes make our subscriber information (i.e. fax, e-mail or mailing address) available to carefully screened organizations whose products and services may be of interest to you. If you prefer not to have your information made available, please write MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068.

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MTD August 2015

Quik-Link: 800-687-1557 ext. 19103

News/views

Is Toyo’s Celsius in a new category?

New tire offers year-round use, long tread life and winter-weather safety The new Toyo Celsius is not an all-season tire like the Toyo Extensa A/S. It’s not a winter tire like the Toyo Observe GSi5.

It’s something that bridges the gap between the two. It performs much better than the Extensa A/S on ice and snow, and features a 60,000-mile limited tread wear warranty, something unheard of for a winter tire.

“We believe we are setting the standard for a new category — ‘variable-conditions’ tires,” says Roy Bromfeld, chief operating offcer for Toyo Tires U.S.A. Corp. “We didn’t call Celsius an all-season tire because it isn’t the same as an all-season tire.

It also isn’t the same as a winter tire. Celsius meets needs between an all-season and a winter tire.”

all-season or all-weather. It’s talking about the conditions on the road.”

The Nokian WRG3 is the only tire with capabilities similar to the Celsius in the marketplace, according to Toyo.

Celsius tires for passenger cars are available in 22 S-, T- and H-rated sizes ranging from 185/65R14 86H to 215/50R17 91H. The tires are produced at Toyo’s Malaysia plants.

Celsius for crossover vehicles For crossover vehicles, the Celsius family includes a tread pattern also backed by a 60,000-mile warranty. The Celsius CUV performs much better than the Toyo Versado CUV in all ice and snow performance categories, especially snow; comparatively, it stops up to 31 feet shorter. There is some trade-off between the two in the wet and dry categories.

The Celsius CUV is available in 24 H- and V-rated sizes ranging from 235/65R17XL 108V to P265/50R20 102V. It is produced at the Toyo Tire North America Manufacturing Inc. plant in White, Ga.

Celsius for passenger cars The Celsius is certifed for severe winter conditions and bears the three-peak mountain snowfake symbol. Toyo says it combined the best of allseason tires and winter tires in the Celsius through tread design.

An opportunity to upsell “We developed the inside of The Celsius is an upsell opportunity, according the tire for winter performance Sediq. “We are not trying to move consumers down and the outside for all-season from winter tires or trying to take away winter tire performance,” says Julie sales from dealers. We’re looking to move The new Celsius for passenger Sediq, senior manager of people up from all-season tires. Celsius is cars has a 60,000-mile tread wear marketing communications an upgrade; this is an opportunity for dealwarranty. Toyo focused on tread for Toyo. ers to upsell to more winter safety.” design to create a tire for year“It’s not a winter compound. round use that is certifed for The company’s plans to support the severe snow conditions.

We didn’t take a winter tire Celsius launch include digital video and and try to extend the life. The radio advertising. Commercials will play in foundation was an all-season tire and the comtheaters in select markets as well. Dealers will be pounding that you would fnd with an all-season tire. able to tag television and radio spots and customize Then we took the tread design and tread technology print ads. to give it that elevated performance.”

“We want to arm the dealers with as many tools to Celsius is far superior in snow and ice acceleramarket Celsius in their area as possible,” says Sediq. tion, snow and ice braking and snow cornering than Celsius tires are now available for ordering and the Extensa A/S. Ice cornering performance is shipping. Unlike winter tires, Celsius can be ordered about the same. There is little compromise in wet any time of the year. and dry performance between the two, with wet “Our intent is to move people from a typical all-seabraking performance favoring the Celsius and dry son tire to a tire that gives them more winter safety, acceleration favoring the Extensa A/S. more winter performance but still gives them the long “We feel to the consumer, all-season and alltread life with the 60,000-mile warranty,” says Sediq. weather don’t sound that different,” says Sediq.

“They really can be safe 365 days a year.”

“The term ‘variable conditions’ is not talking about — Ann Neal

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MTD August 2015

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News/views

bites ATD buys Albert Tire American Tire Distributors Holdings Inc. purchased Albert Tire LLC. The deal excludes some of the assets located in Albert Tire’s West Deptford, N.J., headquarters. The transaction closed June 30, 2015.

Pep Boys considers options The board of directors for Pep Boys – Manny, Moe & Jack says it will consider a possible sale, merger or other business transaction while reviewing “strategic alternatives to enhance shareholder value.”

Raben Tire buys dealer Raben Holdings LLC, which does business as Raben Tire Co. Inc., has acquired the assets of Coogle Tire Service in Otterbein, Ind. Coogle mainly offers agricultural and commercial tire sales and service.

United Tire expands Bradley Tire Ltd. has joined United Tire and Service LLC, an independent tire group in Pennsylvania’s Delaware Valley.

The addition brings the number of stores in the group’s network to 22.

Bradley Tire is owned by Richard and Arlene Fidler.

McCarthy Tire closes shop McCarthy Tire Service Co. is closing its only OTR retreading shop in August. The plant in Somerset, Pa., produces 40 OTR tires a day. The company will source OTR retreads from RDH Tire and Retread Co. and B.R. Retreading Inc. TIA elects David Martin The Tire Industry Association (TIA) elected David Martin as its new board secretary. Martin is director of sales, tire supply and specialty rubber at American Tire Distributors Holdings Inc. MFA Oil buys interest MFA Oil Co. has purchased Big O Tires’ interest in Bore/MPC LLC, the joint venture between MFA Oil Co. and Big O Tires LLC, a subsidiary of TBC Corp. All 14 locations in Missouri and Arkansas will continue to operate as Big O Tires stores under the ownership of MFA Oil.

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Senate says yes to tire registration On July 30, 2015, the U.S. Senate passed a long-term federal highway bill that includes mandatory tire registration and other tire-related rules advocated by the Rubber Manufacturers Association (RMA.) The bill passed the Senate by a 65-34 vote, but won’t be considered by the U.S. House of Representatives until the fall.

The House instead passed a short-term fx to keep current highway infrastructure programs in place through Oct. 31, 2015. The Senate passed the short-term bill as well, and President Barack Obama signed it into law.

But the vote keeps the debate over tire registration alive, as the RMA says the Senate-approved bill includes these provisions: •Minimum tire performance standards for fuel effciency and wet traction.

•A requirement that tire sellers register tires at the point of sale.

•A requirement that the National Highway Traffc Safety Administration (NHTSA) establish a Webbased tire recall lookup tool based on the Tire Identifcation Number (TIN).

The Tire Industry Association (TIA) has joined forces with non-proft advocacy organizations The Safety Institute and Families for Safer Recalls. The groups are urging Congress and NHTSA to support meaningful tire recall and recovery reform that includes a requirement for uniform electronic scanability of tires to ensure successful recall campaigns.

“Individual retailers should not be responsible for developing a recall system for a product they did not make,” says Roy Littlefeld, TIA’s executive vice president. “We believe that tires can and should be machine readable and dealers need appropriate scan tools to quickly and accurately pick up that information.

“TIA is developing a possible solution. We are eager to share that proposed solution and work with safety groups, safety agencies, Congress and the industry on all levels to develop a solution where the top issue is consumer safety and not shifting burdens to small businesses.”

TIA and the safety organizations want Congress to remove the language related to tire registration from the bill and allow the groups involved to respond to recommendations the National Transportation Safety Board (NTSB) is to release later this year.

Technological solutions range from Radio Frequency Identifcation tags to laser-etched Quick Response (QR) codes. Automating tire registration means that even if vehicle ownership changes or a consumer purchases used tires, service professionals can still identify a recalled tire with a quick scan.

“Tire dealers aren’t objecting to tire registration,” says Littlefeld. “The problem is that the latest proposals put all of the burden on dealers and provide no realistic methods for service providers to do the job effciently.

“In order for any tire recall and recovery system to work, we must automate tire registration and the retrieval of the TIN. The proposed legislation is centered on improving registration rates when the real focus should be to improve the recovery rate of recalled tires.”

MTD August 2015

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News/views

bites

BestDrive buys dealer BestDrive LLC, a wholly-owned subsidiary of Continental Tire the Americas LLC, has acquired Hill Tire Co. near Atlanta, Ga. The deal adds five stores and two retread locations with the capacity to produce more than 100,000 retreads per year to BestDrive’s network.

BKT upgrades website Balkrishna Industries Ltd. (BKT) has upgraded its website to include five languages — English, French, German, Spanish and Italian.

Big O Tires adds store A Big O Tires LLC franchisee has added a sixth store. The five-bay store in Surprise, Ariz., is owned and operated by franchisees Karl Gabbard, Desiree Elliott and Ian Downing. It is Gabbard’s sixth Big O Tires franchise location.

Atlantic Tire donates $25,000 Atlantic Tire & Service, which has three stores in North Carolina, donated $25,000 to the Children’s Home Society. Owner Anthony Blackman donates almost 11% of yearly net revenue to charity.

Gabriel has loyalty program Gabriel (Ride Control LLC) has launched the Answerman Advantage, a loyalty program for light vehicle shops and technicians in the U.S. Bridgestone and NHL partner Bridgestone Americas Tire Operations LLC will continue as the Official Tire of the National Hockey League (NHL) for five years, and will return as the title sponsor of the NHL Winter Classic game.

Dawg Pound line expands East Bay Tire Co. has added a radial OTR tire called Rock Dawg Radial and premium commercial truck tires to its Dawg Pound line.

K&M buys wholesale division K&M Tire Inc. of Delphos, Ohio, has acquired the wholesale tire division of Braman, Okla.-based Kelle Oil Co. The purchase includes its tire inventory and customer list.

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Final tariffs even higher for some On July 14, 2015, the U.S. International Trade Commission (ITC) voted to uphold both the anti-dumping and countervailing duty investigations.

This means tariffs on passenger and light truck tires imported from China are fnal, and will remain in place for at least fve years. The cases will be reviewed in 2020.

The ITC did disagree with the Department of Commerce (DOC) on one detail — that importers had tried to beat the clock by quickly increasing shipments to the U.S. after the U.S. Steelworkers fled the petition seeking the investigation. That decision means the tariffs aren’t retroactive, and the in-effect date is the same for everyone: June 18, 2015.

The U.S. Customs and Border Protection (CBP) began collecting the countervailing (CV) and the anti-dumping (AD) duties Aug. 6, when the ITC decision was published in the Federal Register. The ITC will publish a legal explanation of its decision by Aug. 25, 2015.

Some manufacturers and importers will pay even higher rates, after the DOC acknowledged errors in its calculation of the fnal fgures. In the CV investigation, Shandong Yongsheng Rubber Group Co. Ltd.’s rate is increasing from 100.77% to 116.73%. In the AD case, there’s an adjustment to the rate for Giti Tire (Fujian) Co. Ltd. And since that rate is used to calculate a base rate for others, 60-plus companies will pay slightly more. Giti’s AD rate is increasing from 29.97% to 30.74%, while the AD rate for the other companies is rising from 25.30% to 25.84%.

Michelin takes training to dealers Michelin North America Inc.’s BFGoodrich brand hosted approximately 60 dealers in Cleveland, Ohio, for a training session on the g-Force Comp-2 A/S all-season UHP passenger tire and the All-Terrain T/A KO2 light truck tire.

This was the 17th stop on a 21-location tour for the company that began in the Los Angeles market in April and will conclude at the end of August. In all, Approximately 60 tire dealers gathered in Cleveland, approximately 2,000 Ohio, to learn more about the BFGoodrich brand’s dealers will particig-Force Comp-2 A/S and All-Terrain T/A KO2 tires. pate in the events.

Dealers pit the g-Force Comp-2 A/S against a competitor’s tire in wet and dry pavement tests for handling, braking distance and control.

An in-depth training session covers key features and benefts of the All-Terrain T/A KO2.

Michelin introduced the g-Force Comp-2 A/S in April 2015. The company says it has sold more than 1 million All-Terrain T/A KO2 tires in North America since the tire’s launch in November 2014. The KO2 has been expanded to 40 sizes, and another 21 sizes will be available to more than 20,000 authorized dealers when the line expansion is complete in the coming months, the company says.

MTD August 2015

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News/views

bites

Dayco adds warehouse Dayco Products LLC has opened a 400,000-square-foot distribution center in Memphis, Tenn.

New warehouse in Missouri Community Wholesale Tire has opened a third warehouse. The 65,000-square-foot warehouse is in Springfield, Mo. Yokohama sponsors uniforms The English Premier League champion Chelsea Football Club players officially are wearing Yokohama over their hearts, as the team dons new uniforms sponsored

by Yokohama Rubber Co. Ltd. Carlstar acquires Marathon The Carlstar Group LLC has acquired Marathon Industries, a deal that adds flat-free tire technology to the lineup for the Franklin, Tenn.-based manufacturer of specialty and commercial tires.

Trelleborg updates website Trelleborg Wheel Systems division of Trelleborg AB has updated its website with a clean design, enhanced images and every product sorted by its application.

Pirelli reaches milestone Pirelli Tire North America Inc. has produced more than 5 million tires at its plant in Silao, Guanajuato, Mexico. Most of the tires are for North American markets.

Hankook tests concept tire Hankook Tire Co. Ltd. says it has completed its ride and handling tests for the iFlex, and the results show the airless concept tire can match conventional tires in terms of performance.

Continental rebrands Veyance Continental A.G.’s ContiTech division has rebranded the former Veyance Technologies headquarters near Akron, Ohio. Continental acquired Veyance in January 2015.

TGI adds to team Tire Group International LLC (TGI) has hired Jeff DeVonde to lead its domestic sales division as vice president of original equipment and fleet sales.

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Monro adds 31 stores with more acquisitions planned Monro Muffer Brake Inc. continued its acquisitions streak during the frst quarter of its 2016 fscal year, adding 31 stores. In August, Monro expects to fnalize the purchase of 27 stores from Kost Tire and Auto Care based in Binghamton, N.Y. (There is no association between these stores and the Kost Tire group based in Clarks Summit, Pa., which runs 23 stores.)

In July, Monro closed on a deal to purchase four stores from Windsor Tire in Massachusetts. The company announced the acquisitions as part of its earnings report for the frst quarter of 2016, ended June 27, 2015.

After announcing the agreements with two dealers to add 31 stores, Monro says it has more than 10 non-disclosure agreements in the hopper. John Van Heel, CEO and president, says the company’s next potential acquisitions include store chains of fve to 40 locations.

Waukegan Tire supports the arts and youth Waukegan Tire & Supply Inc. showed the creative side of the tire and automotive industries during a month-long art exhibit at a local art gallery this summer. In addition, the company’s founder has been honored for his involvement in the community.

Artists from the Dandelion Gallery, plus other artists in Waukegan, Ill., turned reclaimed or repurposed materials provided by Waukegan Tire into art.

Jill and Jerry Nerheim, who received the 2015 Businessman “The arts are a powerful way to transof the Year Award for his commitform communities, and we are excited ment to youth programs. to see all the great things happening right here in Waukegan,” says Jerry Nerheim, Waukegan Tire’s CEO. Nerheim was named the 2015 Businessman of the Year for his support of youth-focused programs. The award was presented by the Illinois State Crime Commission. Nerheim volunteers and participates in community events, supports law enforcement, and is a long-time supporter of area soccer leagues and organizations that help youth succeed.

Michelin pilots online tire sales and mobile installation service Michelin North America Inc. is in the process of launching Michelin OnSite, which will enable consumers to purchase tires online, via mobile device or by phone, and have them installed and serviced at a time and place of their choice. This new program, to be piloted in Raleigh-Durham, N.C., helps address the growing “on-demand” needs of consumers, including their increasing desire for convenience, speed and simplicity in the tire-purchasing process, according to Michelin. The service costs $169, which covers installation for four tires.

MTD August 2015

Quik-Link: 800-687-1557 ext. 19107

News/views

dates

August 24-27 MIMS Automechanika Moscow Expocentre, Moscow, Russia www.automechanika.com Oct. 31 – Nov. 2 Big R/ReMa TecUSA Remanufacturing Show RIO Hotel & Convention Center, Las Vegas, Nev. www.BigRReMaTechUSA.com Nov. 3-7 Automotive Aftermarket Industry Week (AAIW), Automotive Aftermarket Parts Expo (AAPEX)/Specialty Equipment Market Association (SEMA) Show/Tire Industry Association (TIA) Global Tire Expo – Powered

by TIA Las Vegas Convention Center, Las Vegas, Nev. (800) 876-8372 or (301) 430-7280 www.tireindustry.org www.semashow.com 2016 March 8-10 Tyrexpo Africa 2016 Sandton Convention Centre, Johannesburg, South Africa www.tyrexposeries.com March 16-18 23rd annual European Tyre Recycling Association European Tyre Recycling Conference NH du Grand Sablon, Brussels, Belgium +32 2 734 37 27 ETRA@wanadoo.fr May 24-27 Reifen International Trade Fair Essen, Germany www.reifen-messe.de 2017 March 21 – 23 Tyrexpo Asia Singapore EXPO, Singapore +65 6403 2521 tyrexpo@singex.com www.tyrexposeries.com

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Goodyear says online selling meets or exceeds expectations Rich Kramer, Goodyear Tire & Rubber Co.’s chairman and CEO, says the company’s e-commerce strategy has to date “met or exceeded our expectations.”

More than 4,000 Goodyear retailers are signed up for the program, which was launched in the Chicago market in May. In July, two Chicago area tire dealers reported a smooth process for installing tires sold through the Goodyear website. Four other dealers told Modern Tire Dealer they are waiting for their frst installation.

“You hate to see the manufacturers selling directly to the public, but we have done a couple of installs,” says Michael McBride, service manager for Waukegan Tire & Supply Co., which operates four Waukegan Tire stores. The process went smoothly, although neither customer opted to buy an alignment or other services. He says the possibility of getting some additional work is “all that’s in it for the dealer.”

Todd Gazdich, general manager at Brown Tire of Valparaiso Inc., sold an alignment, struts and road hazard protection to a customer who chose his shop to install tires purchased through Goodyear’s website.

“There were no issues, no problems, we got our credits promptly from Goodyear. It went a lot smoother than I thought it would.”

Modern Tire Dealer also spoke with four Chicago-area dealers who are still waiting for their frst installation. Hitesh Patel operates two Illinois stores, Naperville Auto Center in Naperville and Ultimate Automotive in Aurora. “Zero tires, no phone calls, no response, no one has come in with a printout from the website.”

Butch Young, manager of the VIP Auto Tire and Service Corp.’s store on Archer Ave. in Chicago, has not seen any installations either, but remains hopeful. “It takes a while to catch on. It’s still early. Check back in a couple months to see if a fre has been lit.”

Modern Tire Dealer wins gold Modern Tire Dealer won three awards, including two gold medals, for editorial excellence from the 24th International Automotive Media Competition. The following stories/issues published in 2014 were recognized: • Gold, Business category, “Building Business,” Lori Mavrigian and Neal Weingart.

• Gold, Best Single Issue, “Performance Handbook,” Bob Ulrich, Lori Mavrigian, Ann Neal, Wayne Williams and Bob Bissler.

• Bronze, Feature category, “All for one and one for all,” Bob Ulrich.

“Building Business” highlighted the pros and cons of building a new facility from the ground Modern Tire Dealer won three awards in the International Automotive Media Competition. up by Ziegler Tire & Supply Co. in Canton, Ohio.

“All for one and one for all” profled Bruce Halle, the 2014 Tire Dealer of the Year. Halle leads Reinalt-Thomas Corp., which does business as Discount Tire based in Scottsdale, Ariz. ■

MTD August 2015

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Your marketplace

Higher average ticket and strong trafc trends benefted repair shops

A

ccording to the results of our survey, desurvey reported they sold 1.2% more tires in mand for replacement tires increased in June on a year-over-year basis, following a 0.3% June. Indeed, from a volume standpoint increase in May and a 0.2% increase in April. the dealers reported that they sold 1.2% more tires Trends turned slightly negative in the truck in June on a year-over-year basis, following a 0.3% category as the dealers who responded to the increase in May and a 0.2% increase in April. We survey reported that volumes decreased 0.3% are encouraged by the fact that demand trends afer a 2.2% increase in May and a 0.4% increase seem to be accelerating throughout the summer in April. afer some slight weakness seen earlier this year.

Lastly, the survey respondents indicated that In light of the recent strength in demand trends, By Nick Mitchell volumes were fat in the retread business afer we continue to believe that the abundance of increasing 2.3% in May. pent-up demand should lead to decent volume growth throughout the remainder of 2015, despite the fact that Dealer reported costs are mixed 2014 provides tough comparisons. In fact, demand has Te tire dealers who responded to the survey noted increased on a year-over-year basis for 15 of the past 16 manufacturer pricing on value and branded tires increased months, according to the dealers surveyed. Furthermore, and declined, respectively, on average in June. In fact, the most dealers stated they anticipate trends to improve respondents noted manufacturer pricing on value tires throughout the next three months of this year. Until next increased 0.4% during June, while the price of branded time, keep the tires rolling out the door. tires declined 0.4%.

Te divergence in prices is somewhat surprising; however, Monthly survey most price declines were due to an increase in aggressive A number of independent tire dealers were surveyed pricing and promotions on branded tires, and as the concerning current business trends. Except for tire prices efects of the tarif on imported tires from China fow and costs, the results of the June 2015 survey are compared through to installers, prices have increased on value tires. with those of June 2014.

It is important, as always, to note one month’s results do not make a trend.

How dealers view near-term business Dealers

FEB

MAR

Passenger tire Will improve Will worsen Will stay level

78% 0% 22%

80% 0% 20%

50% 0% 50%

44% 0% 56%

29% 0% 71%

50% 0% 50%

Truck tire Will improve Will worsen Will stay level

75% 0% 25%

25% 25% 50%

75% 0% 25%

56% 0% 44%

29% 0% 71%

57% 0% 43%

R-Revised

APR MAY(R)

JUN(P) JUN(14)

Dealers’ inventory deemed appropriate Of the dealers who responded to the June survey, 67% indicated they had the appropriate amount of inventory in stock for demand (vs. 67% in May), 33% indicated inventory levels were too high, and no dealers indicated inventories were too low.

Te inventory levels among truck tire dealers were similar to passenger tire levels as 60% of those surveyed indicated they had the appropriate amount of inventory, while 40% of respondents noted inventory levels were too high, and no respondents indicated inventories were too low.

P-Preliminary

Repair sales rose in June Dealers believe sales trends should improve According to the survey results, 29% of passenger tire dealers believe business will improve over the next six months, while 71% believe it will stay about level. Te outlook for truck tire demand was identical as 29% of the truck tire dealers we surveyed see business improving, while 71% believe it will stay about level.

Replacement tire sales volume trends improve According to our survey, consumer demand for replacement tires increased in June. As stated, the dealers in our

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Dealers who responded to our survey indicated automotive repair sales trends improved once again in June.

Specifcally, the dealers who responded to the survey indicated that service sales, which accounted for 19% of the study participants’ total revenues, were up 7.0% on a year-over-year basis in June (down from an increase of 9.6% in May) as a higher average ticket and strong trafc trends benefted repair departments. ■

Nick Mitchell is senior vice president, research, for Northcoast Research Holdings LLC based in Cleveland, Ohio. Mitchell covers a variety of subsectors of the automotive industry

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feature

There are tools to help extract consumer data from your sales and service tickets. Leaving that data behind is like falling asleep on the job, then waking up like Rip Van Winkle to discover your customers have left you behind.

Turn your data into proft Storing customer information doesn’t make your business money. Using it does

By Joy Kopcha

D

ave Vogel says most tire dealers are siting on a pile of money. And ignoring it. Teir computers might as well be stufed with cash, and their fling cabinets overfowing like a triple-cherry slot machine jackpot.

All because of this common scenario: A consumer comes into a shop; a technician does an inspection and fnds repairs that need to be done; but for whatever reason — the common refrains are the consumer doesn’t have the time or the money — the work isn’t done right away.

“But those things still need to be done,” says Vogel, vice president and general manager of ASA Automotive Systems Inc. “Tis goes on all day long. Tousands of dollars of service a day gets recommended.”

Before the digital revolution, those paper tickets might have landed in a fling cabinet. Today, digital tickets are housed in computers or in the cloud. Te important lesson is to not let those recommendations get dusty and buried in cobwebs.

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“If we didn’t have our dentist or eye doctor tell us it’s time for our appointment, we wouldn’t remember.”

So Vogel says dealers need to remind consumers of the maintenance work that needs to be done.

“Tey needed that work to be done. It could cause them more problems. It’s beter for end-user customers. It’s beter for shops,” says Vogel. “It’s probably one of the more overlooked things in a shop. Anytime you talk to someone in a shop about this their eyes light up.”

Te trick is, retrieving those past recommendations has to be quick and easy. “Sure, they could run to the fling cabinet, but that would be cumbersome.”

Point-of-sale systems ofer users the ability to mine the ticket data, and searching for declined services is a good way to uncover some of that untapped potential. ASA Automotive Systems sells TireMaster, a program that features pop-up alerts for declined services when a consumer returns to the

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Emedia counter. Vogel says TireMaster groups vehicles by household, meaning even when a mom brings in the sports utility vehicle for new tires, she’ll be reminded of the brake job previously recommended on her son’s pickup.

Vogel says his company knows those declined-service alerts are “a diferentiator for us. It’s been a big contributor to our success.”

But even if a dealer still is running a pen-and-paper operation, technicians are looking for and recommending other services to consumers. It might take more efort to keep track of those

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recommendations without a computer database, but Vogel says it’s still possible.

“Look at all the money and effort it takes to get a new customer, and this is your own clientele that already likes you, and you’re not maximizing your efort with them,” Vogel says.

Use your system to the max One detail stands in the way of dealers recouping those lost sales, says Jay Adams, president of MaddenCo Inc. “Make sure that they capture good data. When a customer comes in don’t create a cash invoice, or just say ‘Jay’ or ‘Joy’ at the top,” Adams says. “Capture the address, phone number, email. Even though that takes a litle more time and keystrokes at the counter, in order to data mine properly you’ve got to have good data.”

Te customer information, paired with other tools such as a license plate look up service, can help a dealer “atach good customer information to good vehicle information.” And while there are apps and tools to use to search for phone numbers and addresses, Adams stresses that telephone lookups in particular are geting trickier as more consumers rely solely on cell phones.

With all of that information in a dealer’s database, there are endless ways to reach out to consumers, but Adams admits he likes “emailing and texting because they’re free.

“You can send a thank you note, a service reminder based on date or mileage — but that’s depending on your guys capturing mileage,” he says. “It’s about using your system to the best of your ability.”

Adams says the “vast majority” of MaddenCo customers who use its Tire Dealer System are hiring a third party company to send customer postcards and leters, even though dealers can do it themselves.

Graham Tire Co. is one of those dealers who uses MaddenCo’s system and turns its data over to a third party to reach out to customers. Lyle Christensen, vice president of information systems for Graham Tire, says the stores in South Dakota and Nebraska rely on KeyMotive LLC and Jerry Terrasi, its sales and marketing director, to do more than send emails and postcards.

Tere’s one Graham Tire location that hosts an annual customer appreciation pancake breakfast. Invitations are sent, but they’re not directed to every customer in the database, Christensen says.

MTD August 2015

“He can mill the data, get the higher spending customers, or customers that have the certain number of visits, which shows loyalty,” Christensen says. “(Te pancake breakfast) is a selling event for us. We have lots of product available to sell and special deals and special opportunities to save money on tires and service.”

By fne-tuning the invitation list, the store connects with, and ultimately rewards, its most valuable customers.

Graham Tire reviews its data on a daily basis. With 28 stores in four states, Christensen says he can look at car counts or tire sales company wide, or focus on a single store. He can drill down to a specifc market, and if there are multiple stores in that same market, see if one location is under-performing compared to the other.

When customers come in with a promotional item, whether it’s an email or postcard, the dealer tracks it, giving Graham Tire real data to show whether oil change reminders are more successful than other service reminders, or if emails are reaching more people than postcards. (Some might dismiss postcards in this digital age, but Christensen says the four-color cards remain efective. “It puts us on the kitchen table.”)

“It’s very valuable. We cannot be that efective managing it ourselves,” Christensen says. “He’s an expert at it. We may be very good at servicing a customer’s vehicle. We are not data-based mining people.

“We try to utilize it. It is our customers. We want to be cognizant, have we lost customers? Do we have lapsed customers? We try to do some sort of action to follow up to that customer. We invite them to contact us. Some of them leave because they might have been upset by an event. We invite them to share back if they were dissatisfed with something.”

Don’t give up on the telephone With all the focus on websites, online selling and digital databases, it’s easy to overlook some of the “old school” tools of the trade — like the telephone.

Katherine Worwa, a marketer for Century Interactive LC, says “everything revolves around the phone.”

Century Interactive is a call-tracking company, with 50,000 real people listening to incoming and outgoing phone calls at businesses. At frst the service was geared only toward sales, especially at car dealerships, but its Service Seter product focuses on that “other” side of business.

During a call, the monitor hones in on how consumers discover a business, whether it’s from a television commercial, a listing in the Yellow Pages or a Facebook ad. Te monitor gauges how well employees are engaging customers on the telephone, tracks the kind of information callers want and measures how ofen callers aren’t routed to the right person. If a call doesn’t go well, it sends an alert to the dealer or manager who can then try to recover that sale or service appointment immediately. Managers can see which employees aren’t performing well and ofer them tips. Service Seter says as employees improve on the phone they’ll be able to convert more calls to service appointments.

Worwa says, “It takes on average seven to nine outbound calls to reconnect to a customer that maybe lef a voicemail or a message with the receptionist, so connecting that inbound call with the resource is important.” ■

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feature

A fat performance for run-fat tires Tire manufacturers say they hear ride and wear complaints loud and clear, and they’re making improvements

By Joy Kopcha

T

he standard complaints about run-fat tires that wear too quickly and offer an uncomfortable ride aren’t going away. In the last fve years as the replacement rate of non-run-fat tires on two-year-old cars has improved by 4%, the run-fat replacement rate hasn’t budged an inch.

Te annual survey by J.D. Power and Associates focuses on consumers who have replaced one or more tires during the frst two years of new-car ownership. Te replacement rate for run-fat tires is much higher than non-run-fats.

In 2011, the replacement rate for non-runfat tires was 20%. It dropped to 16% in 2015.

In that same timespan, the replacement rate for run-fat tires remained 27%.

“We’ve seen the replacement rate for non-run-fat tires improve over the last fve years, but the replacement rate for run-fat tires has remained fat,” says Brent Gruber, who conducts the tire study and serves as director of the global automotive division for J.D. Power.

The faster-than-average replacement rates are problematic for tire manufacturers, A Bridgestone DriveGuard fact sheet shows the key components of run-fat tires. especially as car makers force run-fats to take hold of a larger piece of the overall tire market. Car makers BMW 550i, on a long road trip. Te car wasn’t equipped with see run-fats as one answer to their ongoing eforts to reduce a spare tire, and with damage to the sidewall, the owner was the weight of vehicles to meet new Corporate Average Fuel told not to drive on it. He waited on a fat-bed tow, spent a Economy (CAFE) standards by 2025. night in a hotel and was back on the road the next morning.

In 2014, run-fats made up 1% of the replacement passenger Turns out this was the frst of eight times his run-fats would tire market, with close to 2 million tires sold. go fat in less than 30,000 miles.

“It’s vital that auto and tire manufacturers address the Extraordinary experiences like that one aside, the future ride and wear issues, which are still not meeting customer of run-fat tires depends on improvements to ride and wear. expectations,” Gruber says. “Customers expect that run-fat So Modern Tire Dealer asked run-fat tire manufacturers tires won’t compromise tread life or the ability to provide a about consumer complaints and how they’re going to improve quiet and comfortable ride.” their tires to satisfy both features.

Te complaints about tire ride are especially strong among Here’s who responded to our questions: what J.D. Power calls the performance sport car category, whereas the dissatisfaction with tire wear is most prevalent Marco Verzino, director of quality, and Steve Carpino, with luxury car owners. vice president of research and development for Pirelli Tire Tere are other concerns, however. Consumer Reports North America Inc.; recently highlighted the pain and sufering of one run-fat tire Lee Willard, tire engineer and Corvete tire specialist, owner who got a fat tire while driving his dream car, a 2012 Michelin North America Inc.;

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MTD August 2015

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Run-fats Henry Kopacz, public relations and social media manager for Hankook Tire America Corp.; Jay Robinson, general manager of brand marketing for Goodyear Tire & Rubber Co.; Bob Liu, performance tires product manager for passenger and light truck tires at Continental Tire the Americas LLC; and Robert Saul, director of consumer tire product strategy, Bridgestone Americas Tire Operations LLC.

Tire ride Verzino and Carpino, Pirelli: Te number of ride complaints on run-fat tires has dropped dramatically from the early days, when the ride was admitedly harsh/stif. Te tire companies have made the tires beter for ride while maintaining the other required characteristics, while the vehicle manufacturers have goten beter at designing the suspension systems integrating the run-fat tire characteristics.

Willard, Michelin: Yes I’ve heard complaints on run-fat tire ride, but I’ve also heard more compliments on Michelin’s run-flat tire ride. Many consumers and even the OE test drivers that we work with can’t believe they are riding on a run-fat. Consumers interested in sporty handling almost never comment about comfort because they understand the relationship between ultimate handling control and comfort.

Consumers only interested in a sof quiet ride should opt for standard radial tires to maximize these performances.

Vehicle manufacturers can greatly reduce the ride compromise

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“Te main reason run-fats do not have a great reputation for wear is that the vehicles with OE run-fats are typically tuned more for handling than wear.”

Bob Liu, performance tires product manager for passenger and light truck tires at Continental Tire the Americas LLC when they apply technologies like magnetorheological (MR) shocks. Tese shocks make the chassis very sof for normal driving comfort and make the chassis hard for sport handling to best work with the sporty tuned tires, including run-fats.

An asymmetric run-fat design addresses both the comfort needs and grip needs of UHP run-fat tires. (Willard created and Michelin acquired a patent for a tire “having asymmetrical self-supporting sidewalls” in 2010.)

Kopacz, Hankook: In the area of ride performance, Hankook focuses on designing an optimal sidewall profle that provides

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MTD August 2015

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Run-fats the comfort consumers desire, while at the same time ofering run-fat capability. Designers also focus on carcass structure and raw materials to provide comfortable ride characteristics.

Robinson, Goodyear: Goodyear is always looking for ways to further improve the performance of its products based on the needs of our consumers. Tis has led to signifcant advancements in the area of ride comfort with each new generation of our run-fat technology.

Today’s Goodyear RunOnFlat tire technology enables our tires to ride similar to a conventional tire when infated, while still providing run-fat capability. Tis is especially true when the vehicle has been designed and tuned specifcally for the use of run-fat tires.

Liu, Continental: We do get a few consumer complaints regarding ride comfort for run-fat tires. Run-fat tires have stronger construction than standard tires to be able to support the vehicle weight even without air pressure for limited distances.

Stronger construction typically leads to a less comfortable ride.

Trough advanced engineering of new materials and contours along with careful tuning, the ride comfort of run-fat tires can be made to be close to standard tires.

Saul, Bridgestone: Many of the earlier generations of run-fat tires came out on sports cars where a frmer ride was more acceptable. We’ve worked really hard at Bridgestone to innovate new technologies that improve the ride comfort of run-fat tires.

Our third-generation run-fat technology, which is featured in the DriveGuard tire line, is specifcally designed to improve ride comfort. We continue to hear feedback from consumers

and dealers who say Bridgestone DriveGuard tires ride like a touring tire, while also delivering the safety and peace-of-mind that you can only get from a run-fat tire.

Tire wear Verzino and Carpino, Pirelli: We are improving tire wear like with any other tire: optimizing tire construction to target vehicle characteristics. Te overwhelming majority of our run-fat tires are OE tires, therefore made to meet the target requirements of OEMs. Willard, Michelin: Michelin tire engineers apply computer analysis tools to optimize contact patch for wear characteristics of run-fat tires. (See spider chart below for improvements to the run-fat tires on the 2016 Corvete Z06.)

Kopacz, Hankook: Hankook focuses on developing run fat tires with a more consistent footprint shape for improved tread wear.

Robinson, Goodyear: Goodyear has continued to refne its RunOnFlat technology since the company frst pioneered the concept for commercial use more than 20 years ago. Our data today suggests the vast majority of consumers are satisfed with the wear rate of Goodyear RunOnFlat tires.

Liu, Continental: We continuously develop new technology for improving wear of all tires, including run-fats. Tread compounding, patern design, contour shape and construction all have infuence on wear.

Run-fat tires are not inherently diferent than standard tires except for construction, which afects comfort more than wear.

Te main reason run-fats do not have a great reputation for

Michelin charts the improvement of its Pilot Super Sport ZP (zero pressure) run-fat tires from the 2009 Corvette ZR1 to the 2015 Corvette Z06. The 2009 ZR1 was Michelin’s frst Corvette OE ftment.

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Run-fats wear is that the vehicles with OE run-fats are typically tuned more for handling than wear.

Saul, Bridgestone: We know wear life is one of the top tire performance atributes that consumers want when they’re shopping for a new set of tires. We continually work across all of our product lines, including run-fat tires, to optimize our technologies and make sure that we deliver a tread wear performance that meets and exceeds the consumer’s expectations.

Bridgestone’s new run-fat replacement tire line, DriveGuard, is backed by a 50,000 to 60,000 mileage tread wear warranty, which is improved over warranties on earlier generations of run-fat tires.

Te company ofers 14 tire lines and 175 run-fat tire products in the U.S. “Tis allows vehicle manufacturers to get rid of the spare tire and jack. BMW is a major player while Mercedes Benz is increasing usage of run-fat products.”

Petlas Tire Corp. is just entering the run-fat game. Caglar Bahadir is in charge of development for consumer tires for the Turkish tire manufacturer, and says the tire maker introduced its frst run-fat tires during the third quarter of 2014 and is working to bring them to the United States.

“We are now into negotiations with several large size

Marketing on safety Despite their problems, the run-fat promise of not leaving a motorist stranded on the road is an efective selling point to consumers. Bridgestone’s DriveGuard tires have been on the market for a litle over a year, and the tire maker says that’s been long enough to hear from consumers who are praising the safety factor. One consumer wrote the company saying she “never felt so confdent about my safety with any other tire.”

Bridgestone is unique in its focus on consumers who want to shif from non-run-fat tires to run-fat products. Other manufacturers say the consumers asking about and buying their run-fat tires are ones replacing worn-out run-fat tires that came as OE. “Most consumers purchasing our run-fat tires were satisfed with their OE run-fat tires and are purchasing replacements,” says Liu from Continental.

Potential for the future Any growth of the run-fat market share is dependent on the car manufacturers. As their requests and ftments continue,

A BMW 328d at the New York International Auto Show, is outftted with Pirelli Cinturato P7 All Season run-fats.

the tire makers will follow.

“We are continually working with our OE customers to develop Goodyear RunOnFlat tires tuned to specifc vehicle ftments where run-fat capability is desired,” says Robinson.

“In general, we believe this market will continue to grow, especially in Europe.”

Pirelli says pressure to improve fuel economy and free up space inside the vehicle will continue to drive development, and “there may be an increase in the usage in run-fat products.”

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Michelin makes and markets 20 types of run-fat tires, including these Pilot Sport Cup 2 tires on the 2015 Corvette.

distributors from Tennessee, New York and Minnesota.” Te company also plans to open an ofce in the U.S. “very soon.”

“We are expanding our run-fat tires portfolio. By the end of this year we will have 22 new tire sizes to meet our customers’ demands. We think the run-fat tire market will continue to grow,” Bahadir says. “As more and more manufacturers improve their suspension systems in order to accommodate run-fat tires, complaints of harsh riding experiences are being eliminated day by day. Te safety and low fuel consumption run-fat tires ofer seems to eliminate the concerns of high costs. Te current increase in the run-fat tire sales globally is proof of this.”

Count Aeolus Tyre Co. Ltd. among the companies that’s investigated run-fat tire production. But Mike Leverington, general manager of Aeolus in the U.S., says run-fat tires have been, and remain, a top-tier tire product.

“Run-fat technology tends to be found more with the Tier 1 brands and top Tier 2 brands, all of which have at least some OE position in the global passenger tire business,” Leverington says. “But the additional cost at retail, the limited number of miles that can be driven and the harsher ride criticisms have made the run-fat segment limited and more of a niche concept rather than a broad line segment.”

Tose limitations make sales more difcult for lower tier tire manufacturers, Leverington says.

Te big question If run-fats are the tires of the future, just how long do consumers, and their tire dealers, have to wait until the tires ride and wear like the non-run-fats on the road today?

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Run-fats

Bridgestone DriveGuard tires are backed by a 60,000-mile warranty. Top ftments include the Toyoto Camry, Corolla and Prius, Honda Civic and Accord, Ford Fusion, Nissan Altima, Chevy Malibu and Cruze and the Volkswagen Jetta.

Te answer is: It depends.

Some tire makers say they’ve already hit the mark. “Tanks to our third-generation run-fat technology, Bridgestone has run-fat tires on the market today that ofer ride comfort and wear life that are comparable to conventional tires,” says Saul.

Even Gruber, the man who conducts the annual OE tire survey for J.D. Power, agrees. Teir surveys show some tire manufacturers are geting high marks for ride or wear. J.D.

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Power just won’t share those brand-related fndings because the manufacturers pay for that piece of the research. “As a total industry in the U.S. consumers place a great amount of emphasis on tire wear. Run-fat tire wear is an area where they are particularly defcient, particularly in the luxury vehicle segment,” Gruber says, “but there are some tire manufacturers who have optimized the run-fat tires to the point where those characteristics are not a deterrent, where satisfaction is comparable to non-run-fat tires.”

Pirelli says greater progress depends on the OE manufacturers and their expectations. “Te shorter the distance the tire is expected to be capable of operating without air, the smoother the ride will become overall.”

At Continental, Liu says the problem is in the comparison.

“If you compare apples to apples, run-fat tires wear like traditional run-fat tires today,” he says. “If you compare an OE sport performance run-fat tire on a vehicle with its alignment tuned for handing, to a standard touring tire on a vehicle with its alignment tuned for wear, there is a big discrepancy.

“Tere will most likely always be a ride comfort disadvantage for run-fats due to the stronger construction, but the diference keeps geting smaller. Our latest run-fat tires have ride comfort that is approaching standard tires.”

With those stifer sidewalls, Bahadir at Petlas says current run-fat tires won’t have the same comfort level as conventional tires. “But with developments by both tire and vehicle manufacturers, an average customer using run-fat tires on a vehicle designed for run-fats cannot distinguish the diference.” ■

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MTD August 2015

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feature

Testing every battery in the fall is a ‘right-selling’ opportunity

By Ann Neal

A

ll but the youngest drivers remember when a slow cranking start or dim headlights signaled a dying batery. Tose days are gone. Modern vehicles start instantly until — with no warning — they don’t. Many no-start problems occur when temperatures drop just a few degrees.

In warm weather, a vehicle’s electronics compensate for the lower power output of a marginal batery. Tat doesn’t happen when temperatures dip. A batery loses 35% of its power at 32 degrees, says John Philbrook, director of the afermarket transportation group at Midtronics Inc. Citing statistics from the not-for-proft Batery Council International, he says a batery at 32 degrees can only produce 65% of the power it

had at 80 degrees. “As it gets colder the batery loses the power to produce energy, and the car requires more energy to crank it. At the frst cold spell, no-starts are widespread.

“Te benefts of a tire dealer geting into the market today have never been beter because bateries and vehicles give absolutely no forewarning before a no-start,” he says.

Philbrook compares the fnal stages of batery life to standing on the edge of a clif. “Bateries don’t have a nice trend line when they get to the fnal stage of their useful life. You don’t know you’re standing on the edge of the clif or even starting to fall down it until instead of a slow start you get absolutely nothing at all.”

The 3200 battery tester from Bosch interfaces with a smart device to read and display battery data contained on the tool’s QR code. A full-color battery report can be printed, saved or emailed to your customers.

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MTD August 2015

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Fall car care A strategy to boost revenue Mat Anderson, product manager for of the Automotive Service Solutions division of the Bosch Group, says batery service is ofen overlooked. “People just assume and sometimes technicians do, too, that because they were able to crank the vehicle over the batery must be fne. It may be fne today, but you may be doing your customer a disservice by not at least alerting them the batery may be in a marginal state of health.”

Puting a testing program in place can dramatically increase batery sales and batery revenue, according to Anderson. “Just because a batery is starting fne in the summer doesn’t mean that the batery will be adequate when it is zero degrees. It isn’t upselling, it’s right-selling when in late summer you are testing every batery.”

Jim O’Hara, vice president of marketing for Clore Automotive Inc., suggests shops entice and encourage each of their employees to incorporate batery testing into their service routines. “In this way, the shop provides a consistent experience to customers and ensures they do not miss out on this opportunity.”

Anderson says Bosch has seen 200% to 300% increases in batery revenue in quick lube shops that have implemented testing programs.

“Depending on the area of the country, sometimes as high as 30% of the bateries that are coming into their shop are being classifed as replace now or replace soon. Tat’s a prety big opportunity for a shop to increase revenue.”

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Dale Gospodarek, vice president marketing and strategy for the Power Solutions division of Johnson Controls Inc., sees similar potential.

“Our research tells us that roughly one in four vehicles will need a new batery each year. Additionally, the research tells us that 95% of consumers would be willing to have their batery tested when asked by their mechanic. If that test proves their batery is in a weakened state, more than two-thirds are willing to have their batery replaced within a week.”

Too complex for DIYers Te complexity of batery replacement has made consumers more receptive to having it done when their vehicle is in for service than just 10 years ago, according to O’Hara. “Replacing a batery used to be simple stuf. If you knew your batery size and the required CCA rating, you were good to go. Tese days, it is much more complicated.

“First is the question of batery type. Is it a fooded batery?

AGM (absorbent glass mat) batery? Another type? Next is the fact the batery is ofen located in a difcult-to-access location.

“Finally, even when the batery is easily accessed in the engine compartment, it is ofen confgured in a much more complicated way than in years past. Whereas it used to have just a positive cable connection and a ground connection, we ofen see elaborate electrical feeds coming of the positive connection — creating a complicated process when it comes to changing out the batery,” says O’Hara.

Quik-Link: 800-687-1557 ext. 19119

MTD August 2015

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Fall car care A reset procedure is one complication, according to Bosch’s Anderson. “For some of these new electrical systems you have to perform a batery reset procedure and actually communicate to the engine control module and tell it that you replaced the batery using a diagnostic tool.

“If you fail to do that reset procedure, the alternator is going to try to charge that new batery incorrectly, and you’re actually going to dramatically reduce the life expectancy of that batery.”

In addition, the possibility of damaging costly electronics makes many vehicle owners hesitant to jump start a batery, says Midtronics’ Philbrook.

“Te availability and the want of people to allow you to connect to their vehicle and the ability for people to have that knowledge any more is much less than it was before.”

More than bateries Testing every car is a proven strategy to increase revenue at the shop level, according to O’Hara.

“Without a doubt, adding regular batery and system checks can help shops increase revenue on the same number of vehicles serviced.”

O’Hara says testing the batery, starting system and charging system of each vehicle that the shop brings in will result in numerous additional opportunities to

44

Clore says its Solar BA327 battery tester offers comprehensive testing capability of 6V and 12V batteries and many features such as 10-foot leads, a unique code for each battery test and a counter that records every test performed.

Quik-Link: 800-687-1557 ext. 19121

MTD August 2015

Quik-Link: 800-687-1557 ext. 19122

Fall car care speak to customers about failing or soon-to-be failing bateries, rotating electrical components such as the starter motor and alternator, and connection issues.

“For every 100 vehicles serviced, if each and every one were tested, the studies we’ve seen say that anywhere from 14 to 27 would result in an opportunity to discuss a service issue. Tis is a huge opportunity. A shop that can present batery replacement as simple, easy and not too damaging to the pocketbook has an opportunity to not only increase their revenue but really help their customers.”

O’Hara says Clore ofers two testers to address the opportunity, Solar model numbers BA327 and BA9. Te BA327 includes a counter that keeps track of how many batery tests are performed and can be reset at any point.

Bosch’s Anderson says its 3200 smart batery tester can help dealers explain batery health to their customers. He says it is the frst batery tester on the market to interface with smart devices, which are becoming more integrated into the diagnostic process.

Te OTC 3200 prepares a full-color report that can be saved, printed or sent by email to customers. “Tis is meant to allow

you to have that engaging conversation with your customer, helping them understand exactly what you are saying to them.”

Tere are opportunities to improve revenues in other replacement parts and services because an older low-voltage batery starts the car but strains other expensive electric systems. Te alternator runs at full feld to try to charge a batery that won’t take a charge anymore. Tat in turn leads to premature wear of other electrical systems, which can be much more costly to replace than a batery, according to Philbrook.

Shops that integrate battery service into their routine maintenance packages for winterization and spring tune-ups will be in a position to identify and sell proftable preventive maintenance opportunities. Batery service can also add value to simple jobs like oil changes.

A dealer advises customers of oil that needs to be changed and tires that need to be replaced. Bateries are no diferent, says Philbrook. “We’re not trying to sell the customer something they don’t need. All we’re trying to do is advise them that they are geting to a point where they may turn the key and nothing will happen. Te marketplace has never been beter for helping inform customers.” ■

Midtronics offers products to test batteries and electrical systems in minutes and provide a printout for customer review in seconds. The EXP800 series (pictured) with integrated printer is designed for preventive maintenance programs.

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MTD August 2015

Quik-Link: 800-687-1557 ext. 19123

feature

Test the alternatives as wheel weight markets shift away from lead

By Ann Neal

T

ire dealers in Minnesota, the latest state to ban lead wheel weights, have about fve months to fnd non-lead alternatives. Minnesota’s wheel weight law goes into efect on Jan. 1, 2016. In addition to Minnesota, lead wheel weights are illegal in California, Illinois, Maine, New York, Vermont and Washington.

Two states and one country are now considering wheel weight regulations. Legislators in New Jersey proposed a law banning lead and mercury wheel balance weights in February 2015. In New York, which banned lead wheel weights in 2011, lawmakers are considering a bill prohibiting mercury wheel weights.

In Canada, lead and mercury wheel weights could be Samaritan Tire Co. in Minnetonka completed its transition to banned throughout the entire country. Environment lead-free wheel weights a year ahead of Minnesota’s deadline. In Canada (EC), the government body responsible for addition to legislative action, original equipment manufacturers coordinating environmental policies and programs, are driving markets to non-lead options. has been studying the issue for about a year.

Plombco Inc. was part of a public hearing held in the summer retail and commercial services, high-end vehicles such as of 2014 regarding lead wheel weights in Canada, according Ferrari, Porsche and BMW make up the bulk of the business. to Martin Lussier, president of the Valleyfeld, Quebec-based Mortensen’s service manager, Rob Roy, began planning the company. “Te Ministry of Environment stated that lead wheel transition to non-lead weights a couple of years ago. Multiple weights must not be used anymore and explained in length vendors brought in diferent weights for techs to sample. “We why they believe it is a threat to the environment. However, tried some composite weights. It’s a diferent system than what they are weighing their options in terms of how to achieve we’re used to, and it just didn’t work for us because my techs that. Plombco supports that initiative, and we hope that the are used to clip-on weights.”

Ministry of Environment makes a decision as soon as possible.”

OEs also drive the shif Try the lead-free options As individual states and the Canadian market continue to move away from lead, at some point the U.S. Environmental Protection Agency is likely to step in and force the rest of the market to transition, says Gregory Parker, marketing manager for Wegmann automotive USA Inc., the parent company to the Perfect Equipment and Hofmann Power Weight brands.

“Tis means that all businesses should be investigating and testing the non-lead options to beter prepare themselves for the future.”

Steve Parker, sales manager for Hanco Corp., an Eagan, Minn.-based distributor of tire and wheel-related products, tools, equipment and supplies (and no relation to Wegmann’s Parker), suggests dealers ask their suppliers for wheel balancing options. “It’s tough to change when you are used to something.

Some techs don’t like the look of a certain weight. You used to be able to make a lead weight work just about anywhere, but it’s a lot diferent with non-lead.”

Samaritan Tire Co. in Minnetonka, Minn., sells on average 60 to 80 tires a day, or about 20,000 tires a year, according to owner Chris Mortensen. “We’re tire-focused,” says Mortensen.

“We do everything wheel-related; we do nothing under the hood.” Although the 15 employees in his 10-bay shop provide

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Samaritan Tire continues to adjust. “Iron and zinc seem to work about the same,” says Roy. “Te iron is a litle denser so the weights are a litle smaller so when you get to a big weight the arc of the weight doesn’t necessarily match the rim arc. With the lead weights it didn’t mater, you would just re-form them to the correct shape. But you can’t do that with zinc and iron.”

Wheel weights are a signifcant expense, and the non-lead options cost slightly more than lead. “Right now we bounce back and forth between iron and zinc; the main deciding factor is cost. We stock all the diferent profles of wheel weights for clip-ons, and we do a lot of tape-on. As the years go by we do more tape-on weights, but we still stock the clip-on profles.

Tey have to work, and they have to be cost-efective,” says Roy. Samaritan Tire’s use of adhesives is consistent with market trends, according to Wegmann’s Parker. Original equipment manufacturers as well as legislative actions are behind the shif to lead-free alternatives.

“One thing to take note of is the slow increase in the usage of adhesive weights industry-wide as compared to the slow decrease in the usage of clip-on weights. Tis is due to two factors. One, the increased introduction of fangeless alloy rims from the OEs and two, the introduction of adhesive wheel weight automation in OE factories.” ■

MTD August 2015

Quik-Link: 800-687-1557 ext. 19124

Commercial Tire Dealer™

Making it happen Dealers must diferentiate their service and help feets overcome their biggest obstacle – how to save money

By Joy Kopcha

F

leets place heavy demands on the tire dealers who serve them. Every move, every conversation, comes down to the same question: Can you save them money?

“When you look at truck tires, they’re a commodity-based business,” says Scot McKenzie, vice president of the commercial division for Indy Tire Centers Inc. “Tere are a lot of dealers with the same brand. What separates you from your competition is your level of service. All the dealers have the same kinds of services, so it’s your level of service that diferentiates you.”

Te Indianapolis-based dealer provides varying levels of service for feets. Some subscribe to the business’ mounted wheel program. Indy Tire Centers provides mounted tires and the feet replaces and installs them as necessary. Other feets rely on Indy Tire Centers to “take care of everything.”

Te feet manager establishes a tread depth pull point. When the tire dealer’s service technicians perform maintenance checks and fnd a tire at or below that already-established tread depth, the tire is replaced. No correspondence with the feet is required. Still other feets want to do the tire work themselves, but rely on their dealer for information about the technological advances in tires.

Tires are a feet’s second largest expense, behind fuel. “It’s important we stay on top of our game,” McKenzie says.

Much of what fleets want — and need — depends on how big they are. “Small feets tend to do stuf more in house because they might have mechanics that have more time.”

From McKenzie’s standpoint, small feets are those with 15 to 20 units, or less. A large feet includes at least 100 vehicles.

Fleets bigger than that are the exception, he says, though one of Indy Tire Centers’ biggest feets, Ryder System Inc., has been a customer for almost 20 years.

Generally, smaller feets need the most help identifying things to reduce their cost per mile, McKenzie says, “whether that’s technology in the tires What do feets want from you? or introducing retreadMTD’s sister publication Heavy Duty ing or a diferent tread Trucking tackles the topic ... 52 in retreading.

“Make sure they have Nearly 60 retread products qualify full manufacturer’s supfor the Environmental Protection port. If there are wear Agency’s SmartWay program . . . 54 issues, work with them to see where they’re

Commercial Tire provides feet service to customers from its stores in four states, including a Boise, Idaho, store managed by Scott Schlager, pictured. More feet customers are asking for detailed tire tracking information.

ALSO IN CTD

Indy Tire Centers offers a mounted wheel program for some feets, and delivers the assemblies to those customers. The feet’s only responsibility is to wheel switch the assemblies on and off as the tread depth requires.

Commercially viable . . . 56

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MTD August 2015

at all performances,” he says, meaning both tires and vehicles are evaluated on a regular basis.

“We have diferent tracking as far as performance calculators. Te fuel economy is done mostly of the computers in their trucks,” Hammon says.

“A lot of our business comes from agricultural service. Inside the feet segment there’s a lot of ag feets,” Hammon says.

“A farm business might have 15 to 25 10-wheeler trucks that operate during harvest and planting Fleet operators are focusing on fuel economy, and George Hammon says that means tire performance as well as truck performance.

coming from. Looking at scrap tires and doing analysis, why they’re coming out premature and is there something we can do from a training standpoint?

Can we do something with the drivers?

“We have a computer program we run them through that will show them the top seven reasons for coming out of service early. It might be driver error.

Maybe the repair or age exceeds feet

Scott McKenzie says feets need dealers to cut expenses. “If you’re costing them money at the end of the day, there’s going to be a conversation.”

specs. If there’s a lot for that, let’s increase your specs. Instead of fve years on that casing, let’s do six.”

About 1,800 miles to the west, Commercial Tire Inc. is asking its feet customers similar questions. Commercial Tire operates 39 locations in Idaho, Oregon, Utah and Washington.

George Hammon, the corporate commercial sales manager, says one big change has been how medium-sized feets are asking to track more specifc details. “Tey want to track diferent products, Tier 1, Tier 2 and Tier 3 tires.”

Tey’re measuring costs and mileage performance, and “I think they’re looking

www.moderntiredealer.com

Quik-Link: 800-687-1557 ext. 19125

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Fleet service time. Tey might get 15,000 to 30,000 miles a year. Some have 18-wheelers.”

No mater the truck size, Hammon says, “It all comes down to one thing. Cost per mile.” And even though it’s always the

priority, it seems more critical when those farmers are begging, and praying for rain. “We’re not at quite the Dust Bowl yet. But our ag business, that drives a lot of our business in the Northwest.

If we don’t have water, we’re in desperate trouble.” ■

What do feets want from you?

Modern Tire Dealer’s sister publication, Heavy Duty Trucking (HDT), tackled the topic of how feets should best work with their tire dealers. Given the bevy of data feets already are managing, tracking the miles, usage and wear of a feet’s tires is enough to drive a feet manager crazy. “That’s why a good relationship with an outside tire dealer or service provider is vital,” HDT’s Equipment Editor Jim Park wrote.

“Tire maintenance, perhaps one of the least attractive tasks in a feet’s work roster, is becoming increasingly data driven,” Park said. “Fleet managers now have access to tire information they didn’t have just a few years ago, thanks to tire pressure

52

management systems, telematics, etc., and they are using that information to inform their maintenance and service needs.”

Park outlined the benefits available through dealers who utilize the services offered by the Big Three’s commercial programs, which manage vehicle make, model, horsepower and specifc unit number, as well as miles driven, tire brand and model, tire wear, maintenance performed and wheel position.

The data is used in countless ways.

Sometimes it provides a big picture look at how much feets are spending, how many miles they’re driving and a general guide on how to budget for tires. Other times, it’s a tool to drill

Quik-Link: 800-687-1557 ext. 19126

down and determine that a certain tire isn’t performing well, or that there’s a better option with more retreads available for better long-term savings.

On top of that, tires play a big role in the Federal Motor Carrier Administration’s Compliance Safety Accountability program.

As a result, Park wrote, “You can no longer afford to let your guard down on basic tire inspections.”

His fnal question for feet managers is an obvious opportunity for tire dealers to move in and provide support.

“Do your technicians really have the time and expertise for all that on top of their other responsibilities? It might be time to call in somebody who can make it all happen.”

MTD August 2015

Quik-Link: 800-687-1557 ext. 19127

Retreading

Nearly 60 retread products qualify for the EPA’s SmartWay program I

n June 2015, Modern Tire Dealer published a list of SmartWay-verifed truck tires — all 612 of them. In addition, fuel-conscious feet operators have nearly 60 SmartWayverifed retread products from which to choose.

There are 52 precure tread patterns and six mold cure tread paterns for drive and trailer axle tires on our frst-ever list of retread products approved by the U.S. Environmental Protection Agency’s (EPA) voluntary SmartWay program.

According to the EPA, “certain low rolling resistance retread products can reduce NOx emissions and fuel use of long haul Class 8 tractor-trailers by 3% or more, relative to other popular high rolling resistance retread products.” Fleet operators have to do their part, too, says the EPA. Tey must: 1. Use verifed retread technologies on both the drive and trailer axles. (EPA has also demonstrated incremental fuel savings when low rolling resistance tires are used just on the tractor and/or just on the trailer.)

2. Use the retread technologies on the axle positions for which verifcation is specifed.

3. Use verifed low rolling resistance steer tires.

4. Properly infate all tires according to the manufacturer’s specifcations.

Several manufacturers recently have proven the fuel efcient performance of their retread products to the EPA. Tey are: • Bridgestone Americas Tire Operations LLC, which added the Bandag B760 FuelTech retread product to its commercial lineup in July 2015.

• Goodyear Tire & Rubber Co., which introduced the G682RSD Fuel Max, a precure retread designed for regional feets, in April. Goodyear’s G392A SSD UniCircle and G394A SST UniCircle wide-base retread products earned SmartWay verifcation in December 2014.

• AcuTread Alliance Group received its first SmartWay verifcation for a mold cure drive retread, the FED 20/32nd Drive Tread, in April 2015. Te company says SmartWay verifcation is pending for AcuTread low-profle wide-base drive and trailer retreads.

• Vipal Rubber Corp., which says its VL130 ECO is the frst retread product in South America to be approved by the EPA’s SmartWay program. ■

The following low rolling resistance retread technologies are Environmental Protection Agency SmartWay verifed when used on Class 8, line-haul tractor trailers: Precure tread Brand Bandamatic Bridgestone/Bandag Continental Daeho Goodyear Ironhead Marangoni Michelin Oliver Pre-Q Galgo Vipal Mold cure tread Brand AcuTread Goodyear Michelin

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Drive BTM Smartech FuelTech Drive, B710 FuelTech, B760, B835 FuelTech HDL Eco Plus, HTL Eco Plus, HDR1 EP, HDR2 Eco Plus, HDL2DL Eco Plus, ContiEcoPlus HD3 DH 915 G305 ATS, G572, G392A, G505D, G682 RSD N/A Ringtread RDA-E, Ringtread RZYD, Ringtread RDAone, Ringtread RDA-E2 X One XDA, XDA2 AT, X One XDA HT, X Line Energy D, X Multi Energy D, X One Line Energy D Vantage Max Drive Pre-Q DP VT170 ECO

Trailer TRA Smartech FuelTech-Trailer, B197 FuelTech, B135 Fuel Tech, BTR-UWB, FCR-Trailer HTL Eco Plus, HTL1

Drive FED N/A XDA2 23 AT

Trailer Shallow Trailer Tread (STT) G316AT MC XT-1, X One XTA

DH100 G316 AT, G394A RK515FE Ringtread RTA-E, Ringtread RTAone XT-1 AT, X One XTA, X One Line Energy T, X One Multi Energy T ULP, Vantage Trailer II Pre-Q TA VL 130 ECO

MTD August 2015

Quik-Link: 800-687-1557 ext. 19128

Commercially viable

Camoplast Solideal has a new name and an all-of-road focus

C

amoplast Solideal Inc. has changed its name to Camso.

Following a transition period, this name also will become the master brand for its off-the-road tires, tracks and track systems.

Along with the name change, Camso is puting 100% of its efort on 11% of the global tire and track market: the of-the-road market. Its new marketing tagline is “Camso, the road free company.”

Tis focus “creates an in-depth knowledge of the OTR market enabling the

company to identify its customers’ very specifc needs and, hence, develop enhanced tires, tracks and track systems for those needs,” according to the Magog, Quebec-based company.

Te new name represents the best of Camoplast and Solideal.

“Te launch of Camso highlights the success our company has achieved in just a few years,” says Chairman and CEO Pierre Marcouiller. “We have become the world’s second-largest specialized player in the manufacturing of tires, tracks, and

AcuTread earns its frst SmartWay verifcation AcuTread Alliance Group has received its first SmartWay verification for a mold cure drive retread, the FED 20/32nd Drive Tread. “The precision manufacturing process and operational advantages of mold cure retreading are now available in a SmartWay-verifed drive retread,” says Bob Majewski , technical director. “AcuTread remanufactured retreads are produced under strict processing guidelines by authorized AcuTread licensees.” AcuTread Alliance Group manufactures and distributes tires from locations in Alabama, Arkansas, California, Florida, Illinois, Kentucky, Michigan, Ohio, Tennessee and Virginia as well as through a network of dealer associates.

ACUTREAD ALLIANCE GROUP Quik-Link: (800) 687-1557, ext. 19160 www.mtdquiklink.com/19160

track systems for of-the-road vehicles.”

Camso’s sales in this sector went from $95 million to more than $1 billion in seven years. Te company serves four markets: material handling, construction, agriculture and powersports.

Camso designs, manufactures and distributes high-quality tires, wheels tracks and track systems.

It works with major original equipment manufacturers such as Toyota, Caterpillar, John Deere and BRP, as well as several distribution networks. ■

A new GT Radial long haul drive tire North American fleets and owner operators have a new long haul drive tire option, the GT Radial GDL617FS. Manufacturer Giti Tire Group says the tire offers excellent traction, irregular wear resistance and fuel effciency for long haul usage. It features a wider tread and unique compound design for higher mileage. The tire’s central platform and supplementary groove help prevent stone retention. A deeper transversal and dimensional zigzag siping provide good traction and anti-irregular wear. It’s available in the popular 11R22.5, 295/75R22.5, 11R24.5 and 285/75R24.5 sizes, and is backed by a 72-month limited warranty and limited two-retread casing warranty.

GITI TIRE (USA) LTD. Quik-Link: (800) 687-1557, ext. 19162 www.mtdquiklink.com/19162

Improvements in Trelleborg forestry tires A radial tire for farm implements from BKT Balkrishna Industries Ltd. (BKT) has introduced a radial tire for farming implements featuring increased fexion (IF) technology. The new RIB 713 tire, size 280/70 R 15, is designed to reduce soil compaction and withstand punctures.

BKT says it developed the RIB 713 with IF technology in response to the needs of modern agriculture for reduced soil compaction. IF technology allows for heavier load carrying capacity at the same infation pressures of a standard, samesized tire. This feature provides uniform weight distribution and excellent fotation properties. The tire’s steel belting increases stubble and penetration resistance. In addition, the “D” speed rating ensures that the RIB 713 tire runs up to 40 mph on the road for quick travel from one piece of farm land to another.

BALKRISHNA INDUSTRIES LTD. Quik-Link: (800) 687-1557, ext. 19161 www.mtdquiklink.com/19161

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The Trelleborg Wheel Systems division of Trelleborg AB has improved the performance of its forestry tires by borrowing innovations from its agricultural tires. The Twin Forestry tires series is available worldwide and includes the company’s ProgressiveTraction and inter-lug terraces technologies. They are self-cleaning, track-compatible tires with superior traction for tough forestry applications. The Twin Forestry tire line consists of the T440 (pictured) and T480, and is complemented by the existing skidder range, T418. The frst size offered is the 710/45-26.5, for both the T440 and T480, and more sizes are in the works. The T440 is ideal for clay, mud, ice and snow and provides a better grip and self-cleaning with less impact on the forest foor. The T480 features a large contact area with low ground pressure, as well as a unique tread design for effective self-cleaning and added pulling power.

TRELLEBORG WHEEL SYSTEMS AMERICAS INC. Quik-Link: (800) 687-1557, ext. 19163 www.mtdquiklink.com/19163

MTD August 2015

Quik-Link: 800-687-1557 ext. 19129

European notebook

Supercar sales boost performance rubber While defnitions vary, one thing is clear: HP and UHP tires are growing in popularity in Europe

O

ver the past few years I have noticed for a series of benefts including a high level of that the ultra-high and high perforperformance with exceptional grip and overall mance tire markets have become insports handling. creasingly popular throughout Europe which, However, at the same time there are a lot of when coupled with the fact that most European subtleties and diferent priorities to consider as markets (in particular Italy and Spain) import some consumers expect an HP tire to allow them at least 30% of their tires for sale, leads to a to push their high-powered sports saloon to the highly competitive sector for tire manufaclimits on a track but also remain road legal. In turers that shows no sign of slowing down general, it seems that right from hot hatches to

By John Stone road cruising SUVs and 4x4s, drivers have their in the future.

However, in some ways it is very difcult own interpretation of what high performance to defne the exact import fgures of high performance really means. tires because to do this you have to take into account In my opinion, although still relatively confusing, the varying degree of opinion by tire manufacturers and what all this means is that the high performance market wholesalers/distributors as to what high performance is incredibly diverse and whether for the OE or replaceactually means. ment market, tire sizes can range from 15 up to 23 inches For example, one theory is that high performance (HP) plus! Although in terms of European sales 18 and 19 means tires with a rim diameter of 18 inches or higher inch remain the most popular sizes, but it seems that coupled with its speed rating while others believe HP larger tires in terms of rim size and width also are steadily starts at 17 inch diameters. Another comment is that tires growing in popularity. need to provide high speed performance with superior When it comes to the most popular HP tire sizes in grip and a sporty look to be classifed as HP. Tere is even Europe, last year’s statistics indicate that while the largest a belief that the high performance tire market constitutes selling tire in 2014 was the 225/40 R18 92Y the fastest performance at speed across small and mid-range vehicles selling tire was the 215/50 R17 95W. It is also interesting starting at 15-inch diameters. Confusing? You bet it is! to note that the fastest growing high performance size in So to try and get some clarity I contacted a technical terms of the broader defnition of the HP segment was expert at one of Europe’s leading tire producers who the 195/55 R15. Finally, the fastest growing diameter was 21 inches based on year-on-year sales.

To be honest it is extremely difcult to get a completely accurate assessment of what the high performance market sector actually means across Europe as there are so many opinions within the industry. What I can be sure of is that over the past couple of years, all countries within the European zone are importing and selling an increasing amount of extremely high powered supercars, and when you combine this fact with an equally rising increase in high performing saloon vehicles, from two-seater sports cars through the top-of-the-range of-road marques, then it becomes obvious that the demand for larger and more high speed tires will be required in the marketplace in the not too distant future.

At the moment the largest most popular HP tire is 23 inches, but for how long? Taking everything into Morgan sets the pace when it comes to attractive looking, consideration as 4x4 vehicles get even larger and more sporty models ftted with ultra-high performance tires. powerful, (especially in Germany where the famous explained that the term “high performance” is really made Autobahns impose no top speed limit), I confdently up of a collection of sub-markets which is much greater believe it is only a mater of time before a manufacturer now than it was in the 1980s when high performance tires introduces a 26- to 27-inch high performance tire. Te frst started being fted to vehicles. Te key element in future looks interesting for the performance car and tire this issue is the consumer (driver) who again is looking industries. ■

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MTD August 2015

Quik-Link: 800-687-1557 ext. 19130

Counter intelligence

I worked for a legend Parnelli Jones partnered with winners, and won

I

worked for Parnelli Jones for 20-plus years in performance was expected. Expectation levels were a variety of capacities. In many ways, Jones is high as a result of his passion for winning, which just an ordinary guy; in other ways, he’s quite was demonstrated by his racing achievements, and extraordinary. (For the younger readers who also as a result of the individuals Jones partnered might not know, Jones is an iconic American with and placed faith in to oversee and run the race car driver and business owner. He owned company. Tis winning atitude permeated all a race tire division, a wholesale tire and wheel divisions of the company: corporate, wholesale, division and a retail tire and service network. He’s retail, and race tire. probably most famous for his accomplishments When you meet Jones, you immediately realize on the race track. He won races in many types By Wayne Williams he’s just an ordinary guy with competitive traits of vehicles and in 1962 at the Indianapolis 500, and great driving skills. He’s very easy to talk he was the frst driver to qualify for the pole position at with, and as a result, you end up feeling drawn to him. over 150 mph. In 1963 he won the race as a driver, and as He’s straightforward and likable. an owner he won back-to-back races in 1970-1971 with What I and others experienced was that the combination driver Al Unser Sr.) of his personality and leadership style was transformational. Many of us who worked for Jones were ordinary Placing faith employees; however, the leadership style demonstrated was I caught up with Jones during a recent lunch. He told me, transformational, which allowed us to grow. Te company “You can’t grow without placing faith in others.” He also was an early innovator and recognized leader in custom commented, “I couldn’t do anything without my partners.” wheel development and high performance tires. Jones, As his racing career expanded, so did his business with a transformational leadership style and partners who opportunities. Jones shared a key insight with me years shared his commitment to winning, helped pioneer and ago when he said, “Te key to winning in racing is focus.” shape the industry.

He could not aford to divide his atention between A strong characteristic of the Leader-Member Exchange racing and running retail stores; therefore, he partnered leadership style is that it encourages stronger group members with other winners. as individuals and as collective teams to have high-quality One leadership theory is the Leader-Member Exchange exchanges with leadership that supports action, progress, Teory. Te interaction here is viewed as a fair exchange collective unity and positive results. whereby the leader provides certain benefts beyond a Personality and leadership style played a big part in paycheck, such ass guidthe success of Parnelli Jones during the early years and positioned the company for growth in all divisions.

I recognize now that structure and style permited the company to grow from a race tire division to a retail network of more than 50 locations and multiple warehouses.

I see companies every day that are transactional based vs. transformational. In my mind, it’s clearly a result of leadership choices. Starbucks is a transformational company as a result of transformational thinking and leadership. Tink about it; they transformed a cup of cofee... a cup of cofee!

Te opportunities to be transformational in our industry abound. A consumer can buy a tire almost anywhere.

Tey can even buy a tire on their cell phone. However, where is the best transformational place in your town for a customer to have a tire installed and mounted and ance, advice and support support, and iin exchange, h balanced and maintained and serviced and repaired and ffollowers ll reciprocate by giving the leader respect, coopera- infated and aligned, and have a free cup of great cofee tion, commitment to the task, and good performance. In from a customer/centric team while they are waiting? other words, the relationship and interaction between Winners win! Are you winning? ■ leaders and followers is more transformational than merely transactional.

Wayne Williams is president of ExSell Marketing Inc., a Tis was typical of the relationships at Parnelli Jones, the “counter intelligence” frm based in La Habra, Calif. He can company, as a result of Jones, the man. Winning and great be reached at exsellmkting@gmail.com.

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MTD August 2015

Quik-Link: 800-687-1557 ext. 19131

Focus on industry

Pro-business and p Tat’s what the Latin American & Caribbean Tyre

By Bob Ulrich

P

anama’s importance to global commerce cannot be overstated. It is a free-trade zone to Central and South America, with billions of dollars of products traveling through the Panama Canal every year.

Tat is why Gus Lima calls his Latin American & Caribbean Tyre Expo in Panama a “show and sell” event for suppliers and distributors.

Lima, CEO of Latin Expo Group LLC, says the sixth annual

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exposition lived up to his expectations. Te show featured 210 exhibitors from around the world; Chinese tire companies dominated the two foors of booth space.

“Tis show’s purpose is to bring together manufacturers and distributors from all over the world into the backyard of the Latin American market,” says Lima. “Tey can meet many tire dealers in Panama who, due to tightening U.S. travel regulations, are not able to get a visa to go to the United States to visit the shows.

And Panama has been a business hub for Latin America for the last 40 or 50 years.”

MTD August 2015

ro-dealer Expo is all about Depending on their size, vessels carrying container loads of tires can take from eight to 10 hours to transit the Panama Canal.

Double Coin Holdings LLC and its American subsidiary, Chinese Manufacturers Alliance LLC (CMA), shared a booth with Miami, Fla.-based Lucy’s Tire Inc. “We recognize that the Latin American & Caribbean Tyre Expo brings an increasing number of global manufacturers and suppliers to this region each year,” says Aaron Murphy, CMA’s vice president. “Te Expo afords us and our partner, Lucy’s Tire, an opportunity to maintain and develop our strategic relationships within the Latin American and Caribbean markets.”

Atendance alone does not ensure success, according to Lima.

www.moderntiredealer.com

Top: Latin Expo Group CEO Gus Lima and Show Organizer Linda Bassitt led a parade onto the trade show foor, where 210 exhibitors waited to talk with attendees. Bottom: The Jinyu brand is now part of the Sailun Jinyu Group Co. Ltd.

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Focus on industry the inaugural North American Tire & Retread Expo, held earlier this year in New Orleans, are separate entities.

“Tey are for diferent audiences. Te audience at the North American Expo is strictly what the title says; that show is geared to the tire business and the tire retreading business for Canadian, U.S. and, hopefully, some Mexican dealers. It has a more intense focus on the North American retread business because there is no show for retreaders to go to in North America since the old Louisville show closed.

“Tis show is about the tire business and anything related to the tire business. Manufacturing equipment, retreading, repairing — anything that has to do with tires, this is it.”

Changes in China

Top: “I’m worried TBR will be the next target for anti-dumping,” says Li Haojie, director, Qingdao Longmax Tyre Co. Ltd. Right: The 2400R35 Triangle TB 526S OTR tire towers over fouryear-old Tomaz Eduardo.

Tornel is a popular Latin American brand manufactured in Mexico by an Indian company. It also is sold in the U.S.

“Any show’s success depends on atracting qualifed visitors, not just people roaming around trying to pick up a free pen or a cap.

“We don’t let anybody in the door who is not veted as a tire dealer or people who want to get into the tire business. And we don’t charge anybody to come into the show.

“Te show is a go-to show right now for Latin American tire dealers and for many companies that want to access that market. We’ve been lucky that the show has been successful, successful enough for some corporations to make this their yearly corporate event. (Our) show is here to stay.”

Lima says the Latin American & Caribbean Tyre Expo and

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David Shaw, head of research for Tire Industry Research and author of “China’s Tire Industry, 2015-2018,” led of the exposition’s series of conferences. He talked about “China’s tire industry and its place in the world of tires.”

Tere are more than 400 tire manufacturers in China producing roughly half of the tires in the world, according to Shaw.

“China is an incredibly competitive market,” he said. “Price is a major issue in China.

Prices are falling like stones because there are a lot of producers. If the prices are falling (so rapidly), you can imagine what those companies will do.

Tey’ll try to export.

“A rough rule of thumb is that... if you make a certain number of tires, roughly half of those will be for domestic use, and half will be for export.”

Shaw said the vast majority of Chinese manufacturers “have no idea about marketing whatsoever.” As a result, they sell based on price, “and that is a major problem around the world.”

Domestically, there is almost no brand awareness in China.

“Chinese consumers don’t know what a good or bad brand is,” he said. “Tey don’t really know the diference because there’s no information about that. Te competition is all about price in that country. Tey’re very used to competing on price, and cuting the cost of production. Tat’s just the way they do business.”

Over the next two to fve years, legislation will lead to a lot of changes in China’s tire industry, he said.

“China is rapidly becoming the most restrictive, heavily legislated country in the world in terms of tires. You think North America is difcult in the legislative situation? China is becoming much more difcult. China is puting in all kinds of policies and all kinds of laws.”

China’s leading players make up close to one-third of the total number of manufacturers. “Te aim is to drive consolidation.

(Chinese leaders) are aware this fragmentation of the business is a signifcant problem not only for China, but also for the reputation of Chinese tires abroad.

“Tey’re trying to drive consolidation, but there aren’t too many mechanisms within China to allow that consolidation to happen,” said Shaw.

“Although a lot of people say there will be consolidation, and it will start soon in 2015, I’m not totally convinced that’s going to happen in a big way, but we shall see.” ■

MTD August 2015

Quik-Link: 800-687-1557 ext. 19132

Focus on industry

Mateer to the rescue Specialty Tires of America almost didn’t make it to 100 years

By Bob Ulrich

M

cCreary Tire & Rubber Co. found itself at a crossroads in the early 1980s. Te tire company founded

by Harry McCreary in 1915 was in dire straits fnancially afer more than 60 years of success. Bankruptcy was perhaps the most logical course of action.

McCreary’s grandson, also named Harry, chose to go in another direction. On April Fools’ Day in 1982, he named an ex-Marine president in the hopes of saving his family’s legacy. Despite a lack of support from the local union and the community at large, it worked.

Top: The Indiana, Pa., tire plant has been in operation since May 1915. It supplied Jeep tires to the military during World War II. Left: Ricky Keith operates the presses. A second tire plant was built in Unicoi, Tenn., in 1996.

New President Don Mateer Jr. used his military background and experience as the company’s former vice president of manufacturing to give McCreary Tire new life. He cut costs,

Plenty of products STA focuses on bias-ply tires

including his own salary. He eliminated low-margin tire production at the company’s Indiana, Pa., tire plant, and moved industrial product and curing bladder production to Piney Flats, Tenn.

In order to use fewer raw materials, he began to manufacture race tires and transition away from medium truck tires.

“It was truly about survival,” says CEO and President Don Mateer III. “Te whole of it was there had to be a transformative change in the company, both in products and customers, and a workforce that was aligned with that.”

Some people lef, but not many, according to Elaine Anderson, who has been with the company in one capacity or another for 40 years. “It was black and white, life or death. We went in every day thinking the doors would be locked and the banks would take over.”

Te privately-held company not only survived but thrived.

By 1992, with the company again on a profitable path, a

Specialty Tires of America Inc. (STA) produces multiple product lines and brands at its two tire manufacturing plants. The vast majority are bias-ply tires.

• Small off-the road: American Contractor, American Carrier, Big Jake, American Logger.

• Industrial and mining: Specialty Tires of America, American XD Traxion, Big Jake.

• Farm: American Farmer (both replacement and original equipment).

• Racing: American Racer.

The company also manufactures military, light truck (including a radial private brand), medium/heavy truck, antique (private brand only) and aircraft tires.

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In 1995, STA produced 1 million tires for the frst time. The company’s two tire plants can manufacture from 5-pound go-kart tires to 1,760-pound OTR tires.

MTD August 2015

Harry McCreary, third from left, and Donald Mateer Jr., third from right, posed with employees in 1988. Mateer, who died in 2002, was named Ernst & Young Entrepreneur of the Year in 1994.

name change was in order. McCreary Tire & Rubber R bb Co. C bbecame Specialty Tires of America Inc. (STA), which beter ft what the company was, and remains, all about.

Mateer III is one of 26 key individuals who oversee the parent company, Polymer Enterprises Inc., and its four subsidiaries.

Tey are working on succession planning so STA survives for another 100 years. ■

‘We never left home’ Mateer III emphasized the ‘A’ in STA in 2012 On April 30, 2012, CEO Don Mateer III delivered a shareholders’ address that encapsulated what Specialty Tires of America Inc. (STA) and its parent company, Polymer Enterprises Inc., are all about. And it touched on the one thing unchanged in STA’s now 100-year history.

“Regarding the state of manufacturing in the U.S., unquestionably there have been devastating domestic manufacturing job losses in recent years, including the Commonwealth of Pennsylvania, where manufacturing employment lost 35% of its jobs over the past decade,” said Mateer.

“However, a recent report commented on companies that had previously moved production outside of the U.S., are now expanding in the U.S., and are bringing jobs back from overseas. Rising foreign-labor costs in emerging-market countries, higher shipping costs, and the need to shorten delivery times due to leaner inventories have made outsourcing less desirable.

“All I can say is we never left home, and for nearly a century have honored a commitment to American-made products, proudly manufactured by Americans. Polymer Enterprises currently provides jobs for nearly 800 employees in Pennsylvania and Tennessee. To them, ‘Made in the USA’ is more than a shared spirit of patriotism.

It represents their livelihood, and Don Mateer III, center, is fanked by the means to be able to provide for strip winding technologists Rick Spencer, left, and Jim McGeary. their families.”

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Focus on industry

Michelin replaces the LTX M/S2 Te Defender LTX is a carbon copy of the No. 1 LT tire, built with the stronger EverTread compound

By Joy Kopcha

hauling anything at all. But Peters says there’s a common he newest tire in Michelin North refrain among truck owners America Inc.’s feet isn’t designed to who do put their vehicles to be an original equipment star. But the test. “No mater what we that’s not to say the tire manufacturer isn’t put on my truck it’s not going expecting big things from the Defender LTX to get over 30,000 miles.”

M/S. Michelin believes the Defender LTX is Michelin is marketing the destined to become its top selling light truck Defender LTX as the answer tire — in part because it’s replacing the comto that complaint with two pany’s current No. 1 LT tire. key words: “Stronger. Longer.”

Te Defender LTX is a light truck product Peters says the company’s that comes from melding the long-lasting traits test data shows the new comof Michelin’s successful three-year-old Defender For consumers shopping for all-season tires pound alone extends this tire’s passenger line with its most popular light truck with maximum tread life, Michelin’s lineup life by 10% compared to the tire, the LTX M/S2. Using the tread patern now includes the Defender LTX M/S, with LTX M/S2. and depth of the LTX M/S2, amping it up ftments for 1/2- and 3/4-ton pickups, plus Te Defender LTX’s ftwith EverTread compounding, and ensuring crossovers and SUVs. ment reach is expansive, and the long-lasting wear of the Defender line, the new Defender Michelin says it covers 77% of the market — up from the LTX ofers the best of all worlds.

63% for the LTX M/S2, which is being phased out. With 71 “We were commited to making improvements without sizes — 46 P-metric and 25 LT — the tire will ft “a huge range compromise or sacrifces,” says Stephen Peters, Michelin’s of vehicles,” Peters says. light truck brand category manager.

And like its passenger tire namesake, the Defender LTX “Tere’s such a loyal following out there for the LTX M/ focuses on three traits consumers demand: durable tread life, S2. We want to make it beter, but not so unfamiliar to folks all-season confdence and fuel efciency. that it causes some heartburn,” Peters says.

Te P-metric sizes, typically for 1/2-ton trucks and SUVs, Tat’s why the Defender LTX looks like and is built to match come with the same 70,000-mile warranty as the predecessor, its predecessor. Te EverTread compounding is “the toughest and Peters says, “We do think that the tire will last longer.” Te compound that we “huge” spectrum of ftments for this tire is one of Michelin’s have available” in widest oferings, and the company knows “there will be plenty the United States, of consumers who get plenty more miles than that.” and it’s designed Te LT sizes carry a 50,000-mile warranty, and that’s less to handle the ever- coverage than the current LTX M/S2 ofers. But Peters says the increasing torque EverTread compound lasts longer than the compound in the demands of today’s LTX M/S2. He’s yet to have a dealer tell him the 50,000-mile trucks. From 2009 promise is a bad deal. to 2011 Michelin “All competitors are at 50,000 miles. Te warranty is a says the average selling tool, but not a real world thing,” Peters says. “Te goal torque of 3/4-ton is to take the Defender promise and extend it to the LT line.” trucks increased Michelin says its EverTread technology increases the 23%. strength without sacrifcing performance. In P-metric sizes “It’s amazing to the Defender LTX stands up beter on gravel to chip and tear me that vehicles, say resistance compared to the LTX M/S2, while tread life, wet a F-150, can pull as traction, snow traction and rolling resistance are unchanged. much as a heavy- With the LT sizes, tread life and chip and tear resistance both duty truck 15 years are improved, while wet traction, snow traction and rolling ago,” Peters says. resistance remain unchanged.

Stephen Peters says the Defender Tat doesn’t mean Rollout of the frst 45 sizes of the Defender LTX began Aug. LTX is designed to be stronger for every truck owner 1 and will continue through November in the United States. tougher conditions. The tire’s top is hauling more, or Te next 26 sizes are coming in June 2016. ■ prospects are contractors and feets.

T

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MTD August 2015

Quik-Link: 800-687-1557 ext. 19134

Focus on industry

Tire Pros University A marketing lesson: Know when to play your trump card

By Joy Kopcha

T

ire Pros is taking its marketing training on the road, meeting with its network of independent tire dealers for eight hours of discussion and data sharing during its Tire Pros University (TPU) summer classes.

Tire Pros says the assistance of its full-service marketing department is the most popular service it ofers to its members.

Dealers ofen highlight marketing as a particularly troubling and confusing part of their businesses.

In a TPU registration survey, 36% of the respondents said they understand the importance of marketing and advertising, but are not sure their promotional eforts are working.

Mike Fox says fewer consumers are walking in the door and relying solely on a dealer’s expertise when buying tires. With that in mind, marketing your business is critical.

Tat leaves plenty of room for improvement and education with eforts like the latest round of TPU classes: “Revenuegenerating and impactful marketing concepts.” Two teams of presenters are covering the country during 19 TPU meetings.

Tire Pros hosted its eighth session in Akron, Ohio, and allowed Modern Tire Dealer an exclusive seat in the classroom.

Mike Fox, an adjunct professor at Wake Forest University’s School of Business, and Bob Bitner, director of store operations for Tire Pros, are leading the classes in the eastern half of the U.S., including the one in Akron. Te West Coast team is Wayne Williams, MTD’s Counter Intelligence columnist and president of ExSell Marketing Inc., and Wes Stephenson, vice president of operations for Tire Pros.

Tire Pros says TPU is designed to help dealers focus on how to increase the return on their investments in marketing and public relations, and to learn about the best practices of other dealers around the country.

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Another huge perk clearly comes from the conversation between dealers siting in the classroom.

Eleven dealers from Pennsylvania, Ohio and West Virginia brought difering degrees of experience to Akron. Jim Federico, the second generation owner of Federico Tire & Service Inc. in Painesville, Ohio, joined Tire Pros this year, while John Skerbetz of Ferguson Tire Pros in Weirton, W.V., joked he’s been in the industry since he was in the second grade. No mater how long the dealers have been in business, they all agreed they’re facing pressure from an increase in competition from online tire sellers.

Tat prompted Fox to ask the group how many of them make it known they’ll install tires bought online. Only a few hands went up. “Is that a business opportunity?”

Fox asked. “Buy it wherever, install it here.”

Doug Novosel, an owner of Best Buy Tire Pros Automotive & Service LLC in Cleveland, Ohio, says it’s an opportunity.

“It gets the car in the door,” he says, and presents him an opportunity to sell other needed services.

Skerbetz from West Virginia was of the opposite viewpoint. “We were always combative,” he says, thinking his business would only get the crumbs from what could have been a more proftable deal. But by the end of the two-day session, Skerbetz was changing his tune, and thinking that someone is going to install those tires for those consumers, so it might as well be Ferguson Tire.

“I think I’ll try not to run them of, and try to take some of their money,” Skerbetz says.

Patrick Stuhldreher, general manager of Tire Source’s fve locations in Akron and Canton, Ohio, says the shops will install those tires, but employees also make a point of showing that customer an invoice of what those tires would have cost if they were purchased from Tire Source, and what added services the purchase would have included.

“Everybody’s got their opinion about whether buying tires online is good or evil,” Bitner says. “But every single one of us are online consumers. We’ve all bought something online, so we’re all dancing with the devil at some point. We’ve just got to understand this is the way marketing is headed and retail is going along with it.”

Te growth of online sales has DD Coley wondering,” Are we missing out?” She’s a second generation owner, with her brothers, of Consumer Tire Inc. in Mentor, Ohio. Coley says the family business does install tires bought online, but not enough to match the growth in those sales in recent years.

“No mater how much people buy tires online, you’ve got to have somebody to install them,” Bitner says. “You’ve got that trump card in your favor.” ■

MTD August 2015

Quik-Link: 800-687-1557 ext. 19135

TPMS

Subaru Legacy and Outback 2005-2013 Use a new grommet when reusing the transmitter SUBJECT VEHICLE: 2005 – 2013 Subaru Legacy and Outback.

RELEARN PROCEDURE? Yes. SPECIAL TOOLS NEEDED? Yes, the Subaru Select Monitor and Transmiter Registration Tool (TPM-00012 or Kent-Moore Part No. FJ45295).

T

he tire pressure monitor system (TPMS) on the 2005 – 2013 Subaru Legacy and Outback checks the tire pressures of all four road wheels when the vehicle is driven at speeds above 25 mph (40 km/h), and warns in the event of a loss of pressure by means of a low tire pressure warning light.

A sensor installed in each wheel will indicate when tire pressure is severely low. Te TPMS will activate only when the vehicle is driven.

CAUTION: Te airbag system wiring harness is routed near the TPMS control module. All air bag system wiring harnesses are colored yellow. Do not use electrical test equipment on these circuits. Be careful not to damage the airbag system wiring harness when servicing the TPMS control module.

Under the following conditions, the system may not function properly: • If tire pressures are incorrect.

• If tires are damaged or punctured.

• Air pressure sensor malfunction.

• Air pressure sensor is out of batery power.

• Tire pressure monitoring control module is faulty.

• Defective vehicle harness.

• Defective combination meter.

• Defective air pressure sensor.

• Defective tire pressure monitoring control module.

• If batery fuid, gravity and voltage are out of specifcation (12 volts or more at specifc gravity of 1.260 or more).

• Defective combination meter.

Tire pressure monitor warning light When the low tire pressure warning light illuminates, immediately check air pressure of all tires and adjust to the specifed pressure. Afer adjusting air pressure, drive the vehicle at 25 mph (40 km/h) or more to start TPMS re-checking of the tire infation pressures. Te warning light should turn of in a few minutes. If the warning light is still on afer adjusting tire pressure, check for a damaged tire and repair as necessary.

If the warning light blinks 25 times and then illuminates, and there is not a tire without a tire pressure sensor installed, there is a malfunction in the TPMS. See the appropriate manufacturer service information.

Reset procedures NOTE: When a tire pressure sensor or TPMS control module is replaced, or when wheels are changed, the tire

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pressure sensor IDs must be registered. NOTE: If tires were rotated, the performance and function of the TPMS is not afected. However, tire positions are not displayed in the Subaru Select Monitor correctly.

When the low tire pressure warning light illuminates, immediately check air pressure of all tires and adjust to the specifed pressure. Afer adjusting air pressure, drive the vehicle at 25 mph (40 km/h) or more to start the TPMS re-checking of the tire infation pressures. Te warning light should turn of in a few minutes.

Tire pressure sensor registration NOTE: In the following procedure, the Subaru Select Monitor and Transmiter Registration Tool (TPM-00012 or Kent-Moore Part No. FJ45295) must be used.

NOTE: If the ignition switch and power supply of the Subaru Select Monitor are turned of or the registration procedure is not performed within fve minutes, the registration mode is cancelled.

NOTE: If the tires were rotated, the performance and function of the TPMS is not afected. However, tire positions are not displayed in the Subaru Select Monitor correctly.

Register transmiter IDs afer rotation if the correct display of tire sensor positions is required.

NOTE: If registration procedure is not successful afer two atempts, replace the TPMS control module.

1) Set the tire pressure of all wheels to specifcation.

2) Connect the Subaru Select Monitor.

3) On the “MAIN MENU” screen, select “EACH SYSTEM CHECK” and press the YES (or OK) key.

4) On the “SYSTEM SELECTION MENU” screen, select “TIRE PRESSURE MONITORING” and press the YES (or OK) key.

5) Press the YES (or OK) key after “TIRE PRESSURE MONITORING” is displayed.

6) On the “TIRE PRESSURE MONITOR DIAGNOSIS” screen, select “TRNSMITER ID REGIST CONFIRM” and press the YES (or OK) key.

7) When “ID REGISTRTION MODE EXECUTE, REGISTERED ID IS DELETED PROCEED?” is displayed, press the YES (or OK) key.

8) Using the Transmiter Registration Tool (TPM-00012 or Kent-Moore Part No. FJ45295), contact the sidewall near the air valve of the front lef tire and press the switch to send the transmiter ID to the TPMS control module (at this time, the tire pressure warning light blinks to start the registration procedure).

Register the tire pressure sensors, while noting the following: • Register transmiters in the following order: lef front, right front, right rear, and then lef rear.

• Te transmiter registration tool should be in contact with the sidewall near the transmiter.

• Afer registration for each tire completes, the hazard light

MTD August 2015

All illustrations are courtesy of Subaru of America Inc.

Figure 1: Removing the tire pressure sensor.

Figure 2: Installing the tire pressure sensor.

will blink and “ID REGISTRTION COMPLETED” will be displayed.

• If the registration procedure is stopped before completion (turning ignition switch to the OFF position, wrong registration order, etc.), repeat the procedure from step 6 .

9) Afer the ID registration is completed, the tire pressure warning light will turn on for two seconds.

10) Check the registered transmiter IDs. See DISPLAY TRNSMITER IDs. Afer all IDs are confrmed, drive the vehicle at 25 mph (40 km/h) for 10 minutes.

Display transmiter IDs

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NOTE: In the following procedure, the Subaru Select Monitor must be used.

1) Connect the Subaru Select Monitor.

2) On the “MAIN MENU” screen, select “EACH SYSTEM CHECK” and press the YES (or OK) key.

3) On the “SYSTEM SELECTION MENU” screen, select “TIRE PRESSURE MONITORING” and press the YES (or OK) key.

4) Press the YES (or OK) key after “TIRE PRESSURE MONITORING” is displayed.

Quik-Link: 800-687-1557 ext. 19136

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TPMS 5) On the “TIRE PRESSURE MONITOR DIAGNOSIS” screen, select “TRNSMITER ID REGIST CONFIRM” and press the YES (or OK) key.

6) Select “TRNSMITER ID DATA MONITOR.” and press the YES (or OK) key to display transmiter IDs.

Demounting/mounting procedures CAUTION: The tire should be demounted from the wheel using the tire changer manufacturer’s instructions. Use the following information to avoid damage during the demounting/ mounting procedures.

NOTE: It may not be possible to install tire pressure sensors on some types of wheels. Use wheels that have the same part number as the standard equipment wheels.

NOTE: When a tire pressure sensor or TPMS control module is replaced, or when wheels are changed, the tire pressure sensor IDs must be registered.

See reset procedures.

NOTE: If the tires were rotated, the performance and function of the TPMS is

not afected. However, tire positions are not displayed in the Subaru Select Monitor correctly.

NOTE: If adjustment of tire pressure is performed indoors in winter, the diference between indoor and outdoor temperature is large. When the vehicle is out, tire pressure will go down and the tire pressure warning light might operate. To avoid this situation, adjustment of tire pressure needs to be slightly high considering the diference between indoor and outdoor temperature Figure 3: Positioning the tire changer boom. (about 1 psi (7 kPa) for every 10 degrees Fahrenheit (5.6 degrees Celsius) diference.

Tire pressure sensor CAUTION: Te use of tire sealants is strictly prohibited for vehicles equipped with TPMS. Tire sealants can clog tire pressure sensors.

Removal and Installation (2005-08): NOTE: Use a new grommet when reusing the transmiter.

NOTE: For all years, register tire pressure sensor IDs once the wheels have been mounted. See reset procedures.

Always use a new Torx screw and valve when reusing the transmiter body. ■

Information for this column comes fom Mitchell 1’s “Tire Pressure Monitoring Systems Guide” for domestic and import vehicles. Headquartered in Poway, Calif., Mitchell 1 has provided quality repair information solutions to the automotive industry for more than 80 years.

For more information, visit website www.mitchell1.com.

For archived TPMS articles, visit website www.moderntiredealer.com.

Figure 4: Identifying the wheel, transmitter, screw and valve.

Figure 5: Identifying the transmitter and setting the tire changer boom in position.

TORQUE SPECIFICATIONS Component Ft.-lbs. (N.m) Wheel nut (aluminum wheels) 74 (100) Wheel nut (steel wheels) 89 (120)

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Quik-Link: 800-687-1557 ext. 19137

Component Tire pressure sensor nut (2005-08)

In.-lbs.(N.m) 66 (7.5)

Component Torx screw (2009 and later)

Ft.-lbs. (N.m) 12.4 (1.4)

MTD August 2015

Quik-Link: 800-687-1557 ext. 19138

Products New tabletop tire changers from Hunter

Hennessy introduces adjustable pin plates Hennessy Industries Inc. says its new Coats brand Adjustable Pin Plates provide the most consistent method for accurately mounting tire and wheel assemblies to a balancer. These precision mounting adapters provide the accuracy required to achieve a performance balance. The adjustable design provides fast and easy centering for most tire and wheel assemblies. Additionally, the lug clamping and centering of the tire and wheel assembly helps prevent damage to alloy wheels.

HENNESSY INDUSTRIES INC. Quik-Link: (800) 687-1557, ext. 19170 www.mtdquiklink.com/19170

Schrader unveils single-SKU TPMS sensor Schrader International Inc. has introduced a single-SKU, fully programmable, OE-replacement TPMS sensor that covers a vast majority of TPMS-ftted vehicles in North America.

With a programming speed of about 10 seconds, the new EZ-sensor boosts the speed and accuracy of TPMS service and repair.

Schrader says this single SKU covers more than 100 million TPMS-equipped vehicles on the road and is designed to be infnitely scalable with additional coverage and without adding new SKUs. EZ-sensor will support evolving OE technologies, such as wireless auto-location, and new consumer-oriented features such as pressure-by-position displays.

SCHRADER INTERNATIONAL INC. Quik-Link: (800) 687-1557, ext. 19171 www.mtdquiklink.com/19171

Plasteel wheel weights are easy to install Plasteel premium wheel weights from Plombco Inc. are an innovative product made of steel with a plastic shell. Among other advantages, Plasteel premium wheel weights are easy to install, have exceptional corrosion resistance, look great and don’t scratch the wheel, according to the company. Learn more, request a free sample, and watch video clips demonstrating the features of Plasteel wheel weights at www.plasteelwheelweights.com.

PLOMBCO INC. Quik-Link: (800) 687-1557, ext. 19172 www.mtdquiklink.com/19172

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Hunter Engineering Co. has introduced a new generation of TCX57 tabletop tire changers.

The company says the new tabletop tire changers include several enhanced features for tremendous power and control.

Building on the TCX575 family, the TCX57 and TCX56 add the most powerful side shovel bead breaker and feature a large tabletop with one-touch diameter adjustments, according to Hunter Engineering. The TCX57 also has an enhanced second press arm that is faster and easier to use. The TCX56 is a conventional head version of the leverless TCX57.

HUNTER ENGINEERING CO. Quik-Link: (800) 687-1557, ext. 19173 www.mtdquiklink.com/19173

Full range of engine management sensors from Bosch Robert Bosch LLC offers a full range of engine management sensors that monitor the systems on today’s vehicles that control engine performance, fuel economy, vehicle emissions and more. The Bosch engine management sensor program includes: mass air fow, manifold absolute pressure, turbo pressure, crankshaft position, camshaft position, knock and various temperature sensors for domestic, Asian and European applications.

ROBERT BOSCH LLC Quik-Link: (800) 687-1557, ext. 19174 www.mtdquiklink.com/19174

Bartec releases TPMS software update Bartec USA LLC’s latest software update for its TPMS tools enables users to adjust TPMS placard values and program the new EZ-sensor from Schrader International Inc. Release 53 (and current sub-release 53.1) can be downloaded to a technician’s Bartec TPMS tool. Features are specific to each Bartec tool (ranging from the Tech400Pro to the Tech300SD) and are defned in the software release bulletins found by clicking the Tech Support icon in TPMS Desktop. The company says Bartec tools are the frst to offer this programming capability, and by simply updating the tool, technicians can begin using this programmable solution.

BARTEC USA LLC Quik-Link: (800) 687-1557, ext. 19175 www.mtdquiklink.com/19175

MTD August 2015

Quik-Link: 800-687-1557 ext. 19139

Products Cooper adds premium light truck tire

Ken-Tool: 8 sizes in one wrench

Cooper Tire & Rubber Co. is adding a premium light truck tire to its Discoverer line. The Discoverer STT PRO is replacing the Discoverer STT. The new tire features three-ply construction and a distinctive tread design. Created to deliver superior grip, traction, handling and performance in all off-road conditions, Cooper says the Discoverer STT PRO doesn’t give up on-road capabilities either. With silica in its tread compound, the tread is long-lasting and offers enhanced wet traction in all wet-weather conditions. Cut-and-chip additives help reduce damage to the tread by rocks and other debris. The Discoverer STT PRO is launching with 41 sizes, Q and R speed ratings and C, D and E load ranges.

COOPER TIRE & RUBBER CO. Quik-Link: (800) 687-1557, ext. 19176 www.mtdquiklink.com/19176

Ken-Tool Corp. has unveiled a patented wrench in SAE and metric versions that provides eight of the most popular wrench sizes in one tool. The company says its new 8-in-1 Wrench delivers strength, versatility and convenience in a 7-1/2 in. (19 cm), 12 oz. (0.3 kg) slim profle tool. The 8-in-1 Wrench is fabricated from cold-forged, highstrength vanadium steel alloy. At the heart of the wrench is the “Slide-Twist-Slide” design to quickly change wrench sizes. To change the size, the user slides the carrier to the center, twists it 180 degrees and slides back to lock in place.

KEN-TOOL CORP. Quik-Link: (800) 687-1557, ext. 19179 www.mtdquiklink.com/19179

Centric Parts releases frst chassis catalog Centric Parts, a North American manufacturer and supplier of aftermarket brake and chassis components and systems, has released its frst chassis component catalog, the 2015 Chassis Catalog (1990-2015). The company says the new catalog has detailed listings for the complete range of Centric premium steering and suspension components including control arms, ball joints, tie rod ends, stabilizer links, sway bar links, pitman and idler arms, bushings and more for import and domestic vehicles from model years 1990-2015.

CENTRIC PARTS Quik-Link: (800) 687-1557, ext. 19177 www.mtdquiklink.com/19177

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Kumho releases Road Venture AT51 Kumho Tire Co. Inc. has introduced the all-terrain, severe snow-certified Road Venture AT51 to the U.S. and Canadian markets. Kumho says the Road Venture AT51 is designed for ultimate control on and off the pavement. Kumho’s most aggressive styled tire, the Road Venture AT51 features enhanced tread blocks that bite on ice and frmly grip even the most rugged terrain. The Road Venture AT51 has earned the three-peak mountain snowfake symbol.

KUMHO TIRE CO. INC. Quik-Link: (800) 687-1557, ext. 19180 www.mtdquiklink.com/19180

Michelin expands Premier line

New stainless steel roller cabinet

Michelin North America Inc. has launched the next member of the Premier family, the Premier LTX. The company says the new Premier LTX fitments signifcantly expand its innovative tread technology, EverGrip, to include light trucks, SUVs and crossovers. Available in 47 sizes ranging from 16-inch to 22-inch diameter rim sizes, the Michelin Premier LTX provides exceptional levels of safety even as tires wear down, making them safe when new and safe when worn, according to the company.

MICHELIN NORTH AMERICA INC. Quik-Link: (800) 687-1557, ext. 19178 www.mtdquiklink.com/19178

Beta Tools of Italy has introduced a seven-drawer, stainless steel roller cabinet. The company says its new C04 INOX-7 stainless steel cabinet is perfect for anyone concerned about corrosion or who likes the look of stainless steel instead of traditional painted tool boxes. Seven drawers are 16 inches long by 22 inches wide, the top six drawers are 3.25 inches deep; and the bottom drawer is 6.5 inches deep. All drawers have ball bearing slides.

BETA TOOLS OF ITALY Quik-Link: (800) 687-1557, ext. 19181 www.mtdquiklink.com/19181

MTD August 2015

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Advertiser AAPEX Show ADVICS North America Inc. Aftermarket Auto Parts Alliance Inc. American Omni Trading Company American Tire Distributors Arnott Inc. Atturo Tire Corporation Bartec USA BKT Tires USA Inc. Bridgestone Tire Continental Tire, Commercial Vehicle Tires Double Coin Tires Falken Tire Gabriel Ride Control General Tire Hankook Tire America Corporation Hercules Tires Horizon Tire Inc. Hunter Engineering Company Kenda Tires USA Kumho Tire USA Inc. Mahle Aftermarket Inc. Marangoni Tread North America Inc. Michelin North America Inc. Midtronics Inc. MOOG Steering & Suspension Nexen Tire USA Nexen Tire USA Nitto Tire U.S.A. Inc. Plombco Inc. Red Kap Reliable Int’l Exhibition Services Co. Ltd. Robert Bosch LLC Schrader International SEMA Show SEMA Show Sentury Tire Americas STEELMAN Select TPMS, by JS Products TBC Wholesale Toyo Tires Wagner Brake Products ZC Rubber America Inc.

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Your turn

Tire registration: voluntary or mandatory? Readers respond Each month we ask members of our National Advisory Council (NAC) a question or questions on a current hot topic. Tis month we asked, “What are your thoughts on tire registration? Do you believe it should be made mandatory or remain voluntary?” Here are some of their responses.

1. I believe tire registration should be voluntary, but the small guys will never do it.

2. Primarily, we are concerned about the specifc wording of any such legislation as it may require a return to mandatory tire registration. Wording in the current S. 1741 legislation skirts this issue and the language in the proposed bill, at least of this date, remains unclear.

3. It should be voluntary and as easy as possible. Some of the top retailers do it for the consumer following a purchase — that’s a value added service! Any method to simplify it for the consumer is good.

4. If there are proper tools to make it streamlined, I am not against making tire registration mandatory.

5. I believe it should be mandatory.

6. I feel the current voluntary registration of tires is fne.

7. I would prefer to keep it voluntary, if for no other reason than we already have more than enough government regulations.

We also asked or NAC, “How do you pay your service techs?

By the hour or by the job? And why do you prefer that method of compensation?” Here are a couple of responses.

1. For those technicians who prefer to work slowly and methodically, employment in a flat-rate environment is usually not a good ft. When these same technicians possess a specialty to solve the elusive, difcult problems that plague some vehicles, fat-rate work can also hold litle appeal. In truth, it’s a balancing act. On the other hand, when technicians can do a good job quickly and fnd a shop with ample work that requires their set of skills, they can thrive fnancially in a fat-rate or incentive environment.

2. We pay our technicians by the job using a fat rate.

An association responds to tire registration legislation Dear Editor, It is the position of the North Carolina Tire Dealers Association to always protect and deliver critical information to the motoring public in the event of recalled tires. How this will be done is at question. It is our opinion, that (if) legislation is passed to

move this away from consumers registering tires, we would recommend the solution of scanning the Tire Identifcation Number (TIN) to the Vehicle Identifcation Number (VIN).

Doing this would provide a continued connection of the tires to the vehicle, regardless of the vehicle changing ownership.

Bar code scanning would simplify the recording process, in addition to reducing human error of capturing eight to 12 numbers and leters. Uploading TIN-VIN keeps tires with the car and the information can go to a central location.

Tire manufacturers can provide the necessary applications needed in providing these changes if we move away from consumers registering their own tires as they currently do appliances, computers, car seats, etc.

Reece Hester, Executive Director North Carolina Tire Dealers Association Raleigh, N.C.

We love feedback!

The editors of MTD want to know what you are thinking.

We rely on members of our National Advisory Council each month to track sales data (see Your marketplace on page 21), and to keep in touch with the hot topics that are affecting tire dealers. Our monthly survey gives you the chance to sound off. If you’d like to join this group, email bob.ulrich@bobit.com. You also can let us know your thoughts on subjects we write about online. See the “Post a Comment” box following each news item and article on www.moderntiredealer.com.

Simply fll in the blanks, write your comment and hit “Submit.” We want to hear from you!

Join Modern Tire Dealer’s National Advisory Council Each month, Modern Tire Dealer is guided and infuenced by a select group of readers — members of our National Advisory Council. Tese members’ opinions are the heart of the monthly Your Marketplace column, compiled by industry analyst Nick Mitchell. If you’d like to join this prestigious group, please let us know. We’d love to hear from you. Contact Editor Bob Ulrich at Bob.Ulrich@bobit.com or call (330) 899-2200, ext. 11.

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