Modern Tire Dealer - September 2021 by EndeavorBusinessMedia-VehicleRepairGroup

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California dreaming or new reality? Fuel efficiency ruling could have big impact On the fast track RNR Tire Express builds steam How to sell brake service

‘WE’RE JUST GETTING STARTED’ Jim and Tommy Duff - our Tire Dealer of the Year Award recipients - prepare for Southern Tire Mart’s next growth phase

September 2021 | Vol. 102, No. 9 | $10 | www.moderntiredealer.com

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8/27/2021 1:10:51 PM

The Industry’s Leading Publication September 2021, Volume 102, Number 9

22 Tommy and Jim Duff — the recipients of MTD’s Tire Dealer of the Year Award and the owners of Southern Tire Mart, the biggest commercial tire dealership in the United States — say they’re just getting started. Find out more, starting on page 22.

F E AT U R E S MTD Tire Dealer of the Year

‘We’re just getting started’

TIA to finally celebrate 100 years

DEPARTMENTS 4 Editorial California dreaming or a new reality? Possible fuel efficiency mandate could have widespread impact

6 moderntiredealer.com News and navigation tools for MTD’s website

8 Industry News

SEMA Show and AAPEX return after pandemic shutdown

A season for expansion Tire dealers grow through acquisition

18 Numbers That Count Relevant statistics from an industry in constant motion

20 Your Marketplace

How to achieve success through servant leadership It all starts at the top — with you

90 Mergers and Acquisitions Working capital in an M&A transaction You have to leave a little gas in the tank

92 TPMS Nissan Murano 2004-21

Modern Tire Dealer is a proud member of:

w w w . M o d e r n T i r e D e a l e r. c o m

01_MTD_Contents-Masthead.indd 3

RNR Tire Express’ ‘lease-purchase’ model is gaining steam, says founder

Continental jumps into the all-weather segment

Selling 3-Peak Mountain Snowflake status is key

ATD expands Hercules Terra Trac line

Dealers also to benefit from big marketing investment

96 Products 98 Ad index

ON THE COVER: JIM AND TOMMY DUFF OF SOUTHERN TIRE MART. PHOTOGRAPHY BY SOUTHERN TIRE MART

On the fast track

Focus On Industry

88 Business Insight Your dealership’s central nervous system Are you giving your service managers the tools and support they need?

Inspection process is best way to sell brake service, says VIP’s Winkeler Plus, a look at hot trends in brakes

Slight reprieve? Sell-out trends are tracking positively again

84 TEN Insights

Jim and Tommy Duff — the recipients of this year’s Tire Dealer of the Year Award — prepare for Southern Tire Mart’s next growth phase

Bridgestone adds two Potenza tires

UHP products connect brand to premier performance

Leading the charge

Class 6 and Class 7 trucks are ripe for electrification, says ACT Research

9/2/21 1:37 PM

Editorial

California dreaming or a new reality? POSSIBLE FUEL EFFICIENCY MANDATE COULD HAVE WIDESPREAD IMPACT By

Mike Manges

hile it’s sometimes true that “What happens in Vegas, stays in Vegas,” what happens in California doesn’t always stay in California — especially when it comes to fuel efficiency requirements for tires. In 2004, hardly anybody outside of “The Golden State” knew about the California Environmental Protection Agency’s newly minted SmartWay program. As everyone soon learned, the initiative set fuel efficiency standards for commercial truck tires operating within California’s borders. Despite being voluntary — and it’s still voluntary — SmartWay had far-reaching impact. Tire manufacturers reconfigured tread designs and reformulated compounds to meet rolling resistance targets established by the program. At first, only a handful of tiremakers had the wherewithal to do this. Today, more than 2,000 truck tires have received SmartWay certification. (You can view the whole list at www.epa.gov.) Now imagine the creation of a similar program for passenger and light truck tires. Efforts are already underway as legislators have directed the California Energy Commission (CEC) to establish a fuel efficiency standard and rating system for passenger and light truck tires sold at the replacement level. Under potential rulemaking, replacement tires sold in California would be required to at least match the rolling resistance of OE consumer tires. Before this issue of MTD went to press, I caught up with Tim Olson, senior policy advisor for the commission, to learn more. First, Olson indicated that rulemaking is not imminent. The process in California “can typically take one year to complete from the informal start date,” he said. On top of that, regulations are required to show “that actions are cost-effective and reflect beneficial impacts and cost impacts.” The CEC is now in “the information gathering stage,” which could take several more months to complete. “We are currently gathering data on all passenger vehicles and light trucks operating in California, including their tire make, model, size and trim; examining tire efficiency test data conducted over time; collecting data on OE tires for new passenger vehicles and light trucks; and exploring methods to present and display tire data to consumers to enhance purchase decisions.” Fortunately, the Tire Industry Association (TIA) and the California Tire Dealers Association (CTDA) have been part of the process and are providing valuable input. Olson says talks have been “very beneficial and productive.” Representatives from TIA agree. “The people from the CEC have been very good to work with,” says TIA President Dan Nothdurft. “They want knowledge, so we’re trying to help them with the information they need.”

01_MTD_Contents-Masthead.indd 4

That’s where things stand right now. But let’s speculate for a moment. What if the CEC does establish a rule? What if other states are inspired to create their own standards? And A fuel efficiency mandate what if there’s a federal mandate at could limit your ability to some point? Things could get very sell what you want. complicated, very quickly. (And this is just me talking — not TIA or the CTDA.) First of all, a mandate — at either the state or national level — would limit consumer choice. Not all people can afford higher-priced tires made by companies that have the ability to meet whatever rolling resistance goal that could be required. Where would that leave consumers who can only afford products that don’t have all the “bells and whistles?” Theoretically, a label on a tire would let buyers know if the product meets minimum rolling resistance requirements. But will buyers take the time to read those labels? Will the information matter to them? What if low rolling resistance happens to be a low priority for the customer? What if a customer is more interested in another attribute, like traction? Is saving a few bucks at the gas pump worth potentially losing some grip? There are customers who are much more interested in tire and wheel aesthetics than tire performance. Let’s say a loyal customer of yours wants to buy a big-diameter tire for his lifted pickup truck. Fuel economy is probably the last thing on his mind. He just wants something that looks cool. How will you handle that? This leads to another problem that I foresee. A fuel efficiency mandate could limit your ability to sell what you want. Not all customers have the same tire needs. Will a ruling paint all tire buyers into a one-size-fits-all corner? Will it force some people to run tires that exist outside of an “approved” list? Will a class of “outlaw” tires emerge? Who will police this? Furthermore, there’s no guarantee that all tire manufacturers will be able to build products that meet a certain rolling resistance target. (Think back to the early days of SmartWay.) And what about the potential impact on your inventory? Now, some of the scenarios discussed above may never occur. But they’re worth thinking about. I have no doubt that the intentions of the CEC are sincere. And I’m glad the commission is working closely with TIA and the CTDA to come up with a workable solution. That’s good for all of us. I just want to make sure you’re aware of what’s happening. And I encourage you to follow the situation as it develops by checking back with MTD. ■ If you have any questions or comments, please email me at mmanges@10missions.com.

MTD September 2021

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ModernTireDealer.com DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER

MTD has a podcast! Download The Modern Tire Dealer Show for important news, exclusive analysis and conversations with the tire industry’s biggest names! It’s available on all major podcast platforms!

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eNewsletters Sign up now for Modern Tire Dealer eNewsletters. We’ll send you the latest news and most popular articles. Go to: www.moderntiredealer.com and scroll to The Modern Tire Dealer Newsletter is the Definitive Source for Tire Dealer Success.

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“I think you will see us experiment with other services more,” Dean Muglia, Discount Tire’s CEO, recently told MTD. He says, “Nothing is off the table.”

Industry remains in state of flux

HOME OFFICE 3515 Massillon Rd., Suite 350 Uniontown, OH 44685 (330) 899-2200, fax (330) 899-2209 Website: www.moderntiredealer.com PUBLISHER Greg Smith, ext. 2212 gsmith@10missions.com EDITORIAL Editor: Mike Manges, ext. 2213 mmanges@10missions.com Managing Editor: Ron Ledgard, ext. 2216 rledgard@10missions.com Senior Editor & Digital Projects Editor: Joy Kopcha, ext. 2215 jkopcha@10missions.com PRODUCTION Art Director: Zach Pate Graphic Designer: Emme Osmonson Production Artist: Lauren Coleman Production Manager: Karen Runion, ext. 2210 krunion@10missions.com SALES Publisher: Greg Smith gsmith@10missions.com (330) 899-2200, ext. 2212 Midwest: Bob Marinez bmarinez@10missions.com (330) 899-2200, ext. 2217 West Coast: Marianne Dyal mdyal@10missions.com (706) 344-1388 Automotive Aftermarket: Dan Thornton dthornton@10missions.com (734) 676-9135, mobile (734) 626-4950 Sean Thornton sthornton@10missions.com (269) 499-0257 MTD READER ADVISORY BOARD Rick Benton, Black’s Tire Service Inc. Jessica Palanjian Rankin, Grand Prix Performance John McCarthy Jr., McCarthy Tire Service Co. Inc. Jamie Ward, Tire Discounters Inc.

Change is in the air throughout the industry and the top stories on our website reflect that. Discount Tire CEO Dean Muglia says that “nothing is off the table” when it comes to adding more services at the dealership. In addition, consolidation continues and shipping issues remain, both of which are impacting tire dealerships in big ways.

CUSTOMER/SUBSCRIPTION SERVICE (800) 260-0562 subscriptions@moderntiredealer.com

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EXECUTIVE OFFICE 10 Missions Media 571 Snelling Ave. N. St. Paul, MN 55104 (651) 224-6207

Discount Tire CEO: ‘Nothing is off the table’ Best-One of Indy expands again by acquisition When will the shipping crisis end? Tire registration fines could devastate your business Les Schwab will acquire Plains Tire in Wyoming Up, up and away! Pricing trends by tier and region New TBC CEO discusses NTB, Tire Kingdom strategy Goodyear and Cooper consumer tire prices are going up Pep Boys to lease 109 California stores to Advance Auto Parts Patterson will oversee sales for Apollo in North America

CORPORATE OFFICERS President: Jay DeWitt Vice President: Chris Messer Vice President, Content & Events: Bryce Evans

Modern Tire Dealer (ISSN: 0026-8496) is published monthly by 10 Missions Media, LLC, 571 Snelling Ave N, St. Paul, MN 55104-1804. Copyright © 2021 by 10 Missions Media, LLC. All rights reserved. Modern Tire Dealer content may not be photocopied, reproduced, or redistributed without the consent of the publisher. Periodicals postage paid at St Paul, MN and additional mailing offices. POSTMASTERS Send address changes to: Modern Tire Dealer, 571 Snelling Ave N, St. Paul, MN 55104.

01_MTD_Contents-Masthead.indd 6

MTD September 2021

9/7/21 11:08 AM

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8/27/2021 1:09:23 PM

Industry News

A season for expansion TIRE DEALERS GROW THROUGH ACQUISITION

ire dealers both large and small are making moves in the summer of 2021. While larger tire dealerships are constantly measuring the business climate and analyzing potential deals, the husband-wife team of Steve and Cody Gray have made the big move from one location to two. The Grays took over ownership of their first store, a Big O Tires location in Provo, Utah, in July 2019. In their first year of ownership, they achieved sales of $4 million. So on July 1, they bought and converted a second store — a former Point S location in Pleasant Grove, Utah — to the Big O brand. Steve Gray had worked for Big O for more than 25 years, moving up to managing the Provo store before purchasing it. He works the front end of the business, while his wife, Cody, manages bookkeeping and accounting. Their son, Weston, is joining the family business. “We have remained open while making renovations and installing new equipment to let customers know we are here to help and to show our dedication and commitment to the community,” says Steve. “We have big dreams, but our goal, at both locations, is and will continue to be to exceed the expectations of our customers, building lasting relationships by providing high-quality products at a great value and performing honest and worry-free tire and auto service.”

HEARTLAND BUYS GRAHAM EAST

Heartland Tire Inc., based in Ramsey, Minn., recently bought Graham Tire East from Bob and Martha Graham. The deal includes eight combination retail/commercial locations — five in Iowa and three in Minnesota — giving Heartland 27 stores total. Heartland Tire CEO Dave Mitchell didn’t disclose terms of the deal, but calls it his company’s “largest.” Heartland Tire also has picked up Graham Tire East’s ag tire distribution business. Graham Tire West locations are not part of the deal. (Graham Tire West is the

02_MTD_News-Numbers.indd 8

other part of the overall Graham Tire Co. organization.) Prior to the acquisition, roughly half of Heartland’s locations were in “metro areas and half were in rural (areas), which is similar to where Graham’s locations are,” says Mitchell. “And those rural locations are where you bring your lawn tractor, your dump trucks, your farm tractors and your personal vehicles. So it made sense. We understand that business and we’re in that business.” The Graham Tire East acquisition adds 130 employees and gives Heartland about 290 workers in total. Mitchell says Heartland Tire wants to boost its store count to 50. “In 2011, we had one location. I wrote a business plan to grow our locations to 20 and we’ve done that. A couple of years back, we looked at it again and could see bigger. Our current mission is to get to 50 locations. We are talking with several companies.”

BEST-ONE OF INDY GROWS

In July, Indy Tire Centers Inc. dba Best-One of Indy completed its second acquisition in three months, buying Riley Park Tire in Greenfield, Ind. Jim Helgason started Riley Park Tire in 1963 with two employees and grew it into a retail and commercial tire business that serves customers in four states. His son, Jeff Helgason, who worked in the business for 35 years, sold it to Indy Tire Centers. Rich Elliott, president of Best-One of Indy, says Riley Park Tire has been “closely associated with Best-One” for most of its existence “because of the relationship Jim Helgason and Paul Zurcher, founder of Best-One, had working together. Riley Park Tire has been a customer of Zurcher Tire for well over 40 years.” So Elliott says when Jeff Helgason decided it was time to step away from his role as an owner, he turned to the Zurcher family, who then introduced him to BestOne of Indy. (And while he will no longer

Heartland Tire says it plans to keep the Graham Tire name for its eight recentlyadded locations in Iowa and Minnesota.

work in the day-to-day operations of Riley Park Tire, Jeff is joining Zurcher Tire and will work for Mark Zurcher in an ag tire sales role, Elliott said.) “The main reason that the Helgasons wanted to sell to us is because for 58 years they have been family-owned and they wanted to transition to a company that had the same philosophy of family-first.” They wanted to “make sure their team members are well taken care of. We want to honor their legacy. It’s vital for the community and customers to know that they won’t be seeing much change. Riley Park Tire will still have the same great, local people at the store, offering the same great service they have come to trust over the years.”

SUN AUTO BUYS FOUR STORES

Sun Auto Tire & Service Inc. continued to expand its footprint, most recently with the purchase of McSpadden’s Tire & Automotive Inc., a four-store, retailfocused tire dealership serving the Austin, Texas, market. Raymond and Dianne McSpadden started McSpadden’s Tire & Automotive in 1999. Sun Auto Tire has taken ownership of their four stores in Congress, Bee Cave, Wells Branch and Buda, Texas. Combined, the four locations have 36 service bays. The McSpadden stores add to Sun Auto Tire’s growing network in Texas, which also includes outlets in Houston, San Antonio and Dallas/Fort Worth. MTD September 2021

9/2/21 1:38 PM

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8/27/2021 1:10:27 PM

Industry News

Replacement market tire shipment gains

Bites Michelin says market is back By this summer, Michelin Group says the replacement tire market in North America had returned to and exceeded 2019 levels. Globally, “passenger car and light truck tire markets are expected to expand between 8% and 10% over the year and truck tire markets by between 6% and 8%,” says Michelin CEO Florent Menegaux.

Monro looks for distribution As Monro Inc. continues to build its footprint of stores, tire distribution capabilities must follow. Monro CEO Mike Broderick says the company is looking at partnering with existing tire wholesale distributors to supply its expanding network of stores.

he U.S. Tire Manufacturers Association (USTMA) expects total tire shipments in 2021 to exceed pre-pandemic levels, according to the group’s latest estimates. The USTMA projects total tire shipments will reach 336.1 million units this year — up from the 315.7 million units the USTMA estimated in March. That’s a 6.2% improvement. The total beats the 332.7 million units shipped in 2019. The improvement compared to the USTMA’s March projections is due to notably stronger numbers in the replacement tire category. The passenger, light truck and medium truck tire shipments are all expected to be higher than what the forecast called for in the spring. Here’s how the numbers break down for original equipment and replacement tire shipments, with comparisons to 2020 and 2019 totals:

Apollo names sales lead

The Biden White House has unveiled draft mandates and aspirational targets to drastically cut vehicle carbon emissions and accelerate the shift to electric models. The executive order sets a non-binding goal that 50% of new cars sold in 2030 will produce zero emissions.

SRI adds capacity Sumitomo Rubber Industries Ltd. plans to increase passenger, light truck and truck and bus tire production at its factory in Brazil. The company will add daily capacity for another 5,000 passenger and light truck tires, plus more than double its daily capacity for truck and bus tire production.

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Passenger

40.9

37.2

46.3

Light Truck

5.7

5.4

5.9

4.7

6.5

52.5

47.3

58.7

Passenger

224.4

203.8

222.6

Light Truck

37.3

32.9

32.5

Replacement

Truck

21.9

19.2

18.9

Total Replacement

283.6

255.9

274.0

Total Shipments

336.1

303.2

332.7

*All shipments are in millions. Figures are rounded.

Love’s opens larger retread plant

TIA searches for CEO

Biden sets emissions goal

2019

Total O.E.

Martin goes to CEMB

The Tire Industry Association (TIA) has started the search for its next CEO as longtime CEO Dr. Roy Littlefield plans to retire. Littlefield was named TIA’s executive vice president in 2003.

2020

Truck

Apollo Tyres has named Scott Patterson its new national sales head for consumer tires. He will oversee Apollo’s growth initiatives in the U.S. and Canada. Prior to joining Apollo, Patterson served as director of national accounts at National Tire Wholesale.

David Martin has been named chief operating officer of BL Systems/CEMB-USA. He will be responsible for all of the company’s North American business and is a former Tire Industry Association president.

2021 Forecast Original Equipment

ove’s Travel Stops has replaced a retread plant and distribution center in Texas with a facility twice the size in El Reno, Okla. It’s part of a national strategy to expand the company’s retread and distribution capacities. The 220,000-square-foot facility doubles the size of the one it replaces in Grand Prairie, Texas. Love’s has seven retread plants and Love’s Travel Stops says this 220,000 squareis the eighth largest retreader in the foot facility in El Reno, Okla., is more than the size of the retread plant and distriUnited States, according to MTD’s Top twice bution center it is replacing in Texas. 50 Retreaders list. “The new facility in El Reno is a great location to serve our most valuable customers and develop and distribute products to the surrounding towns and states,” says Steve Phillips, director of tire sales and plant operations for Love’s. “This location allows us to provide greater coverage, so our customers can get back on the road quickly and safely.” Love’s covers retreads, casings and repairs for the full life of the retread. MTD September 2021

9/8/21 10:25 AM

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8/27/2021 1:09:52 PM

Industry News

Bites Nexen wins Kia OE fitment Nexen Tire Corp. will supply Kia Corp. with two original equipment passenger tire fitments for the automaker’s first electric car, the EV6. Selected tires include Nexen’s Roadian GTX EV and the N’Fera Sport EV.

Hankook OE on BMW again Hankook & Co. has earned another original equipment fitment with BMW The Hankook Ventus S1 evo Z will be OE on the BMW X3 M and BMW X4 M, in size 255/40ZR21 102Y on the front and size 265/40ZR21 105Y on the rear axle.

Lamborghini picks Potenza Bridgestone Corp. has customized a Potenza race tire for the Lamborghini Huracan STO and will be the exotic car’s sole tire supplier.

TIA names Jarman secretary The Tire Industry Association’s board has elected Keith Jarman, president of AME International, as its secretary. A TIA board member for the past 12 years, Jarman is in line to serve as TIA’s president in 2023.

Mercedes goes electric Daimler AG’s Mercedes-Benz brand says it is stepping up its transition to electric vehicles and is sketching out a market scenario in which its new cars would “in essence” be fully electric by the end of the decade.

Grewal, Singh buy store Tanveer Grewal and Mandeep Singh recently purchased their first Big O store, a six-bay, 4,100-square-foot outlet in Chico, Calif. The business partners immigrated to the United States from India in 2005 “with dreams of running their own business,” a TBC Corp. spokesperson says.

Milestar joins Tread Lightly Tireco Inc.’s Milestar brand is now an official partner of Tread Lightly, a nonprofit dedicated to promoting responsible outdoor recreation through stewardship and educational programs.

Clemson postponed to 2022 The Clemson University Global Tire Industry Conference has been postponed until April 2022. It had been scheduled for this month.

02_MTD_News-Numbers.indd 12

Yokohama will add truck and bus tires to the mix next year at its new distribution center in Wilmer, Texas, which is located 15 miles southeast of Dallas.

Yokohama opens distribution center

okohama Tire Corp. has opened a new distribution center in Wilmer, Texas, some 15 miles southeast of Dallas. The plant will initially distribute Yokohama’s passenger and light truck tires. Medium truck and bus tires will be added to the inventory in 2022, according to Rick Alonzo, Yokohama’s vice president of supply chain and logistics. “Building this modern facility in Wilmer was a strategic decision,” says Alonzo. “It places us closer to our customer base, helping get our products to dealers much faster. That was one of our goals when deciding on the new location.”

Tiremakers impose more price hikes

ndustry-wide price hikes remain in effect and on Sept. 1, some tiremakers pressed ahead with their fourth increase since the start of 2021. Michelin North America Inc. raised prices on both consumer and commercial tires, with increases of up to 8% on Michelin, BFGoodrich and Uniroyal brand consumer tires and a 14% hike on both on- and off-road commercial tires sold in the U.S. and Canada. Goodyear Tire & Rubber Co. followed suit with a consumer tire price hike of up to 8% that covers its Goodyear and Cooper brands.

Monro paid $62.1 million for Mountain View Tire in California

onro Inc. paid $62.1 million for its most recent expansion in California — the 30 Mountain View Tire & Service Inc. stores it acquired in the greater Los Angeles area. Monro disclosed the selling price in a filing with the U.S. Securities and Exchange Commission. In that same filing, the company says the stores “will operate under the Mountain View Tire & Service name.” Monro announced its plans to acquire Mountain View Tire & Service in March and closed the deal on April 25. Monro expects the stores to add about $45 million in annual sales. As of June 26, the Mountain View stores, which had been owned by the Mitsos family, have contributed $7.9 million to Monro’s bottom line. MTD September 2021

9/7/21 11:13 AM

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8/27/2021 1:08:28 PM

Industry News

Bites

Nokian plant moves to 24/7 production

ASA focuses on digital tools ASA Automotive Systems is focusing on how to offer a frictionless customer experience with digital technology. The company is highlighting its tools during its user conference this month.

Nokian, which also has plants in Finland and Russia, shifted to 24/7 production at its Tennessee plant in July and is adding employees.

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okian Tyres plc is now manufacturing tires around the clock at its plant in Dayton, Tenn. The company moved to 24/7 production at the facility on July 12. The addition of a fourth shift at the plant “is in line with Nokian’s long-term ramp-up plans” for the factory, where it intends to produce as many as four million tires annually once full capacity has been reached. The company expects to make one million tires at the plant in 2021. The expansion “allows us to keep pace with production goals that will help us grow our presence in North America,” says David Korda, the plant’s operations director.

Tire Discounters expands marketing team

ormer Amazon and Procter & Gamble executive Chris Yapp is Tire Discounters Inc.’s new chief marketing officer. Yapp will oversee Tire Discounters’ brand strategy and marketing initiatives, including the launch of its Protect Your Legacy program. “Adding Chris to our marketing team is the fuel we need for our aggressive growth plans,” says Crissy Niese, senior vice president and chief customer officer for Tire Discounters, the nation’s eighth largest tire dealership, according to the 2021 MTD 100. “He brings exceptional marketing experience and skills that are the right combination for us at this stage of our growth, especially as we grow into new territories and leverage our national brand recognition.” Yapp most recently served as head of marketing for Amazon’s Brilliance Publishing division. Before joining Amazon, he held various brand management roles at Procter & Gamble, The Kellogg Co. and Scotts Miracle-Grow Co. MTD September 2021

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8/31/2021 11:20:27 AM

Industry News

Bites American Omni is certified American Omni Trading (AOT) has been certified by Great Place to Work, based on what the company’s employees say about their experience. Ninety-eight percent of AOT employees called it a great place to work — a score that is 39 points higher than the U.S. average.

‘The Red Book’ is ready The Ultimate Wheel & Tire Plus Sizing Guide, known to the industry as “The Red Book,” is celebrating its 20th year of publication. The reference guide is published by Wheel Consultants Inc. and contains both OE and plus-size wheel and tire fitment information for cars, trucks and SUVs.

CEAT sponsors rodeo events CEAT Specialty Tires will be the official ag tire sponsor of the World Champions Rodeo Alliance, which produces major rodeo events across the United States, for the next three years. CEAT also is sponsoring the Women’s Rodeo World Championship.

Bridgestone to buy Azuga Bridgestone Americas Inc. plans to acquire Azuga Holdings Inc. and the company’s fleet management platform for $391 million. The purchase will allow the Bridgestone to speed up its work of developing and deploying sustainable mobility solutions.

SBA sets up PPP loan forgiveness portal The U.S. Small Business Administration (SBA) has rolled out an online portal that lets businesses that have borrowed Paycheck Protection Program (PPP) funds of $150,000 or less apply for loan forgiveness. The SBA says the portal will help rush relief to more than 6.5 million small businesses. A borrower can apply for loan forgiveness once all proceeds from the loan have been used. The SBA says loan forgiveness applications should be submitted by the maturity date of the loan. The process to apply depends on whether or not lenders are participating in direct forgiveness through the SBA. SBA customer service personnel are available to answer questions at (877) 552-2692, Monday through Friday, from 8 a.m. to 8 p.m. EST. Through the PPP, the SBA and lenders have generated nearly 12 million loans — totaling nearly $800 billion — to more than 8.5 million small businesses.

Ohio tire dealers name officers, make donations The Ohio Tire & Automotive Association (OTAA) named new officers and made two donations during its recent golf outing, which was held near Columbus, Ohio. The OTAA donated $1,500 to the Automotive Aftermarket Charitable Foundation, a nonprofit that helps members of the automotive aftermarket who are struggling due to illness or other problems. “We also made a $1,500 contribution to Maria’s Message, a foundation that seeks to raise awareness around the epidemic of distracted driving,” says Alex Boehnke, OTAA’s legislative director. Sportscaster Dom Tiberi accepted the donation on behalf of the foundation, which he created after losing his daughter to distracted driving. The association’s new officers are Jeff Wallick of K&M Tire Inc., president; Jon Boyd of Boyd’s Tire, vice president; Jamie Ward, CEO and president of Tire Discounters Inc., second vice president; and John Casey of Flynn’s Tire & Auto Service, treasurer. More than 125 people participated in the event. ■

FTC supports Right to Repair The Federal Trade Commission has voted to enforce Right to Repair laws, which will give consumers the ability to repair their own electronic and automotive devices. The vote signals support to enforce federal antitrust laws and an act that applies to consumer warranties and device repairs.

Snap Finance adds leaders Snap Finance has expanded its leadership team to include Gaurav Kohli, chief technology officer; Doris Hektor, chief compliance officer; and Tim King, chief financial officer.

Topdon opens office Topdon USA has opened a new office in Rockaway, N.J., and has hired Chad Schnitz as its vice president. The diagnostic tool supplier also has named Victor “Vince” Lee as its marketing director.

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The OTAA gave $3,000 in donations during its annual golf outing, including $1,500 to the Automotive Aftermarket Charitable Foundation. Chuck McCourt, center, president of Base USA Corp. (Accu-Turn), accepted the check on the foundation’s behalf.

MTD September 2021

9/2/21 1:40 PM

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9/9/2021 8:52:07 AM

NumbersThatCount

Relevant statistics from an industry in constant motion

300

Number of dollars that a bank in Monroe, Ind., loaned to Paul Zurcher, MTD’s 2005 Tire Dealer of the Year Award recipient, in 1948. Zurcher used that money to open a service station, which became Zurcher Tire Inc., the launching pad for the Best-One network.

John Snider was his father’s 21st employee when he joined Snider Tire. At the time, the dealership had a small retread plant that made 10 to 15 units a day. Today, Snider Tire has nine retread plants that produce 3,300 truck tire retreads per day, according to MTD research. John Snider was named Tire Dealer of the Year in 2010.

SOURCE: MTD RESEARCH

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John Marshall of Grismer Tire Co. was MTD’s 11th Tire Dealer of the Year Award recipient. “We compete against very sophisticated organizations that have unbelievable resources,” he told MTD after he won the honor in 2003. “I’m proud of the industry and I’m proud of our company.” SOURCE: MTD RESEARCH

Bob and Juanitia Purcell are the first husbandwife combination to win MTD’s Tire Dealer of the Year Award. They received the honor in 2004. Purcell Tire & Rubber Co. is the 16th largest independent tire dealership in the U.S., according to the 2021 MTD 100. SOURCE: MTD RESEARCH

1919

The year in which Oliver Ziegler, uncle of 2009 Tire Dealer of the Year Award winner Bill Ziegler (pictured), opened Ziegler Tire & Supply Co. in Canton, Ohio. Ziegler Tire is the longest-running Firestone dealership in the United States. SOURCE: MTD RESEARCH

MTD September 2021

9/2/21 1:40 PM

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8/23/21 10:21 PM 8/27/2021 1:16:19 PM

Yo u r M a r k e t p l a c e

Slight reprieve?

SELL-OUT TRENDS ARE TRACKING POSITIVELY AGAIN By

John Healy

ast month, I reported that retail sell-out trends were starting to cool down. But it appears that this might have been an anomaly, based on more recent data. Recent dealer commentary suggests that demand for passenger and light truck tires at the retail level has rebounded from prior-month levels. Furthermore, sell-out levels last month were even stronger than the robust demand observed one year ago. The net number of respondents to our latest survey indicated that they saw a yearover-year demand increase of 59%. Contacts noted that the rebound was likely attributable to the unpredictable nature of the repair business, along with continued improvement in miles driven. We believe that the most recent month’s sales benefited from slower sales during the previous month and is a continuation of the strength seen during April and May. We continue to hold the perspective that volumes in the long run will become even more closely aligned with the current level of gross domestic product growth, with a degree of uncertainty in the months to come due to the proliferation of the delta variant of COVID-19. However, we also believe that consumers will drive more.

TIER-TWO SHOWS STRENGTH

Our latest survey reveals that tier-two remains the segment of most significant growth among our surveyed contacts, which is consistent with what we have seen — even during the early days of the pandemic. We also note that fluctuations away from this trend are

likely a function of transitory items. This could be a sign that prior strength we had been observing in the tier-three category is starting to subside as consumers become increasingly confident in their financial outlook. We also note that tier-one brands have been ranked second in our listing for three months in a row, which is the first time this has occurred since before the pandemic — specifically December 2019 through February 2020. When it comes to inventory, dealers note that levels remain low, while price increases continue to be pushed through by more manufacturers. The most recent round of price hikes has taken place over the last few months and in some cases, tire manufacturers have raised their prices multiple times within the last 12 months. We believe that aggregate pricing gains of 20% to 25% have taken place over this time period. However, this has appeared to not have dampened the relative strength of demand for tier-one products, which was expected by some dealers due to the price difference between tiers as pricing has increased. Throughout the pandemic, we have seen that consumers switch tier and brand preferences based on the current COVID19 situation. With relatively high rates of vaccination and broad reopenings throughout the country, we believe that tier-two brands will remain the preferred choice of many consumers.

Snapshot of Dealers’ PLT Tire Volumes (Year-Over-Year Change) Increase

May-20

Jun-20

Jul-20

May-21

Jun-21

Jul-21

Average

25%

22%

75%

34%

24%

65%

41%

Flat

50%

22%

13%

33%

52%

29%

28%

Decline

25%

56%

12%

33%

24%

31%

Total

100%

SOURCE: NORTHCOAST RESEARCH ESTIMATES

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OIL PRICES JUMP 76%

Looking more closely at raw material costs, the “basket” of raw materials needed to make a common replacement tire has risen 29% on a year-over-year basis, while also increasing on a sequential basis by 1.5%. This continues the trend of everincreasing raw material price inputs that began at the start of the year, although year-over-year increases have moderated since April 2021 highs. Holding current spot prices flat would yield a 25.5% year-over-year increase to input costs during the third quarter of 2021, up 3.1% from second quarter levels. In assessing raw material price movements, we note that carbon black has seen its price increase on a year-over-year basis for seven months in a row, with double-digit growth levels during the past four months. Crude oil prices have seen extreme cost pressures, especially at the start of the pandemic. As noted in previous columns, 2021 has been a much different story as miles driven continue to increase. We note that July 2021 saw an increase of 76%, year-over-year, with sequential gains in oil prices since November 2020, although July experienced the lowest month-over-month increase at 1.6% versus June 2021 levels. Natural rubber prices rose 29% in July, which marks strong double-digit gains over the last year. Synthetic rubber prices were up 20% on a year-over-year basis, which marks the first time this has occurred since April 2017. Unsurprisingly, pricing for tire reinforcement items continues to track in the negative range year-over-year, in a continuation of a longstanding trend. ■ John Healy is a managing director and research analyst with Northcoast Research Holdings LLC, based in Cleveland, Ohio. Healy covers a variety of subsectors of the automotive industry.

MTD September 2021

9/7/21 11:16 AM

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www.raybestos.com

8/19/2021 11:00:40 AM

T i r e D e a l e r o f t h e Ye a r

‘WE’RE JUST GETTING STARTED’ XXXX Caption

Jim and Tommy Duff — the recipients of this year’s Tire Dealer of the Year Award — prepare for Southern Tire Mart’s next growth phase BY M I K E M A N G E S

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MTD September 2021

8/31/21 1:34 PM

Southern Tire Mart “has been the engine for the growth of everything we have,” says Jim Duff, left, with Tommy Duff, outside the company’s headquarters in Columbia, Miss.

w w w . M o d e r n T i r e D e a l e r. c o m

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8/31/21 1:34 PM

T i r e D e a l e r o f t h e Ye a r “Southern Tire Mart is our largest business and it’s the one we love the most,” says Tommy. The dealership is on target to achieve $2 billion in sales this year.

They own and operate the biggest commercial truck tire dealership in the United States. 24

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Their company also is the largest retreader in the country — with its daily production eclipsing that of three different tire manufacturers. They’ve built a coast-to-coast empire spanning more than 150 stores across 15 states that is on track to hit $2 billion in sales this year. They recently formed a historic joint venture with the nation’s largest truck stop chain. They also own 22 other companies — including two trucking fleets — that they have transformed into wildly successful ventures. They’re Jim and Tommy Duff, the owners of Southern Tire Mart. They’re the recipients of MTD’s 2021 Tire Dealer of the Year Award, the most prestigious honor in the tire industry. And they say they’re just getting started.

‘WE WERE THE UNDERDOG’

Today’s Southern Tire Mart is a far cry from the dealership’s humble beginnings. The company was founded in 1973 by the Duffs’ father, Ernest Duff, a prominent lawyer in the family’s hometown of Columbia, Miss. MTD September 2021

9/2/21 1:43 PM

CONGRATULATIONS TO JIM & TOMMY DUFF On behalf of the entire family of 2,000 U.S. Yokohama employees, please accept our most sincere congratulations on being selected as MTD’s Dealer of The Year. This recognition is a testament to Southern Tire Mart’s commitment to an empowered, high-quality workforce that embraces a strategic vision for doing business the right way, every day.

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8/27/2021 1:15:50 PM

T i r e D e a l e r o f t h e Ye a r

“We don’t sit in our offices, waiting for things to come to us,” says Jim. “We’re very aggressive.”

“Our father was an attorney by training, but liked business more than practicing law,” says Tommy. In the early 1970s, Ernest bought stock in Bandag, then a publicly traded company, “and it did well. He thought if the stock was such a wonderful investment that a Bandag franchise would be even better.” Ernest applied for — and received — a small Bandag franchise, his first foray into the tire business. He set up shop in a small, unassuming building. The plant contained a single, 11-unit curing chamber and manufactured five to six retreads per day. Ernest also owned a small trucking company. “He learned that his 20 trucks did not cover the volume he needed” to operate the Bandag plant profitably, “so he had to go out and find customers,” says Jim.

03_MTD_Feature-DOY.indd 26

Already busy with his practice, Ernest “had to find a manager to do that.” Managers came and went and the fledgling company struggled to gain traction. Then Tommy, who was finishing up a masters degree in business and had been accepted into law school, came to Ernest and said he would like “to try the tire business. “I had worked at Southern Tire Mart while in high school and really liked the business,” Tommy recalls. “He said, ‘OK, but you need to realize it’s broken and can hardly make it.’ And I said, ‘I appreciate that.’ He then said, ‘If you want to try it, then try it. Get after it.’ I started in the tire business right then and there. “Three years later, Jim was finishing up school and we had an opportunity to go to Jackson, Miss. Our largest customer MTD September 2021

9/2/21 1:43 PM

CONGRATS! TO THE DUFF BROTHERS ✴ 2021 DEALER OF THE YEAR ✴ Cooper® tips our hat to Tommy and Jim. Your dedication and commitment to quality make us proud to be your partner.

Thomas & James Duff SOUTHERN TIRE MART

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8/27/2021 1:15:13 PM

T i r e D e a l e r o f t h e Ye a r

“Southern Tire Mart’s greatest asset is its people,” says Jim. The dealership’s leadership team includes, from left to right, Janet Price, John Boynton, David Tolbert and Keven Haddox, all of whom oversee different functions within the organization.

was a company called KLLM Transport Services” — a firm that the Duffs would eventually acquire and rebuild. “Our dad was a brilliant man and a great teacher, but until Tommy got involved, Southern Tire Mart really floundered,” says Jim, who joined the company as a salesman and started calling on customers in Jackson and other areas. “We were the underdog,” says Jim. “Everyone was bigger” and better capitalized. “We worked hard, but it was tough for a long, long time. Accounts were hard to get and weren’t just falling into our laps.” The Duffs realized they needed to offer new truck tires in order to compete more effectively. They applied for an account with Michelin. A Michelin rep who went to their church vouched for them “and for some reason, Michelin felt sorry for us,” says Tommy. Even with a new tire supply contract in place, things were slow-going. “It took years to solidify our business,” says Tommy. The brothers eventually developed enough customers in Jackson to justify opening a store there. “We were in a bad part of town,” says Tommy. “It was all we could rent. But four years after we moved to Jackson, we were the dominant dealer there” — a process that would repeat itself many times in the ensuing years. “We were two kids. We never had a mentor. We really didn’t have a lot of support. We just had to out-work and out-service our competitors. And that’s what we did.” “We’ve always been very engaged in what we’re doing,” says Jim. “We were always hands-on. It made a big difference. “A lot of our competitors at the time were older guys who

03_MTD_Feature-DOY.indd 28

had done OK and were enjoying their lives. But we were very engaged. And that taught us a valuable lesson. If you’re not engaged — whether you’re younger or older — you’ll start losing your business.” As Southern Tire Mart slowly grew, the Duffs hired people — “many of whom are with us today,” notes Tommy. The brothers continued to open stores — moving into Baton Rouge, La., and then to New Orleans, Lafayette and Lake Charles, La. “As we opened a location, we always had a salesman or two working the next area,” says Tommy. “And as the next area started developing, it was time to put in a location. We went from north to south and east to west.” How did competitors react as Southern Tire Mart expanded? “Not that well!” says Jim. “You had some manufacturers that favored one company over another and if you were trying to enter a new market, you were the black sheep.” One person who was extremely supportive of the Duffs’ growth was then-Bandag CEO Marty Carver, who would play an instrumental role in Southern Tire Mart’s future.

‘TOP OF THE WORLD’

By 1997, the Duffs had built Southern Tire Mart into a $145 million-a-year enterprise. “We were on top of the world,” says Tommy. “We were happy. We were growing.” “Everything was coming together,” says Jim. “A lot of hard work was starting to pay off.” Then came an unexpected turn of events involving Bandag. Faced with the prospect of losing five of its most prominent MTD September 2021

9/7/21 1:10 PM

Congratulations Jim and Tommy

MTD 2021 Tire Dealer of the Year

Date: 08/25/21

Double Coin is proud to be a preferred partner of Southern Tire Mart. We value our long standing relationship and look forward to the years ahead.

Client: CMA

Account Director: VAN NGUYEN 29_CMA DOUBLECOIN_0921.indd 29 Color: 4C/Process

Page 1 of 1

Job #: 3553

File Name: 3553-CMA-ModernTire-CongratsAd-Sept-R2

Editor:

Designer: LB

Revised By:

Production: LB

Trim: 7"× 10"

Bleed: .125” all sides

Safety: .25” all sides

Fold: 0"

8/27/2021 1:14:37 PM

T i r e D e a l e r o f t h e Ye a r

Southern Tire Mart has more than 150 stores across 15 states. “As customers have gotten bigger and have demanded more consistency, they want larger dealers to work with,” says Tommy.

True leaders have an unstoppable spirit. Being a leader means having the courage of your convictions. It takes strong values and an even stronger belief that following those principles will create success. Congratulations to Tommy and Jim Duff, owners of Southern Tire Mart, for being named Tire Dealer of the Year. We value your relationship and the example that you set for leaders everywhere.

03_MTD_Feature-DOY.indd 30

MTD September 2021

9/2/21 1:44 PM

retreaders to venture capitalist Kolhberg & Co., Bandag acquired those companies “to prevent major voids in our distribution network,” Carver told MTD at the time. Bandag folded the retreaders into its Tire Distribution Systems Inc. (TDS) subsidiary. “It was the beginning of roll-ups and the private equity business,” says Tommy. Kohlberg first approached the Duffs with an offer. They turned the company down. “We had a close relationship with Marty Carver. He said, ‘I want to go with you.’ And we said, ‘Marty, we have no intention of selling to you, either.’ “Marty came back and said, ‘Kolhberg has pulled the plug.’” He made the Duffs another offer.

“Our goal is for the customer to have the same experience in Corona, Calif., as he does in Tallahassee, Fla.” - TO M M Y D U F F

w w w . M o d e r n T i r e D e a l e r. c o m

03_MTD_Feature-DOY.indd 31

“He said, ‘I’ve got to buy you. Just tell me what you want and we’ll do it.’” “Our dad still owned the majority of Southern Tire Mart at the time,” says Jim. “At his age, he was excited. It was good for our family.” The dealership was sold to Bandag “and that’s how we ended up at TDS,” says Tommy. The sale “killed us,” he adds. “It was great for our family, but bad for Jim and me.” TDS offered jobs to the brothers. Jim stayed at TDS for a year. Tommy hung on for a year-and-a-half. “TDS never really used me and then fired Tommy,” says Jim. The brothers also had a five-year non-compete that started with the sale. After it expired, tire manufacturers began calling them and making offers. Jim and Tommy turned them down. Then Carver called again. “He said, ‘I would like to see you come back and if I can help you, I will.’” The Duffs bought Southern Tire Mart from TDS in 2003. They quickly began reassembling their old team. “We met with people who had worked for us before and every one of them returned,” says Tommy. That included Keven Haddox, one of Southern Tire Mart’s first employees, as well as David Tolbert, who now manages the dealership’s business east of the Mississippi River, and Janet Price, who is now the company’s chief financial officer.

9/7/21 12:59 PM

T i r e D e a l e r o f t h e Ye a r

“We want to be the market leader — period,” says Keven Haddox, right, with David Tolbert, center, and John Boynton, left. “So whatever the market is, we want our people to go after that. Our corporate office is set up to support the people in the field so they can take care of customers.”

The Duffs’ personalities “really complement each other,” says Janet Price. “Tommy is always looking for the next opportunity. Jim is more like, ‘OK, just wait a minute.’ He’s going to weigh it out. It’s a good partnership.”

With Jim and Tommy back at the wheel, the Southern Tire Mart team hit the ground with renewed passion. But there was a lot of work to do. “When we sold to TDS, we were doing $145 million,” says Tommy. “When we bought it back, it was doing $85 million.” The enthusiasm of Southern Tire Mart’s employees played a big role in enabling the dealership to regain what had been lost during the interim. “There was a huge sense of energy and excitement,” says Tolbert. “Everybody was so happy — especially the ones who were there before. It was a big motivator for a lot of people.” “Everyone wanted to get out there and go after it,” says Haddox. Tolbert says Jim and Tommy had inspired fierce loyalty in their employees.

03_MTD_Feature-DOY.indd 32

MTD September 2021

9/8/21 10:26 AM

T i r e D e a l e r o f t h e Ye a r ‘The landscape is changing’

Southern Tire Mart at Flying J eyes fast growth

“I recently had an opportunity to sit down with a customer who said, ‘How fast can you build this thing? Forty locations is nice, but that’s nowhere near the saturation we want to see,’” says John Boynton, president of Southern Tire Mart at Pilot Flying J.

Announced this past January, Southern Tire Mart at Pilot Flying J is a “game changer,” according to Jim Duff. “And we have to make it work,” adds Tommy Duff. The joint venture will set up 200 locations within the next twoand-a-half years, says John Boynton, its president. Forty outlets are already operational. “The volume that goes through the truck stop channel — from a tires and service standpoint — is small compared to the traditional tire dealership model. But it is a highly trafficked channel and a critical supply point”. Southern Tire Mart and Pilot Flying J “are very similar in that they are family businesses. There are a lot of parallels. You also have a very strong brand name on the Pilot side and a very strong brand name on the Southern Tire Mart side.” Southern Tire Mart at Pilot Flying J is a “natural extension” of Southern Tire Mart’s existing operation, says Boynton. It pushes the Southern Tire Mart brand into new areas where the dealership doesn’t have a presence. And it provides fleets with a consistent experience, regardless of location, he adds. “We think that’s where the market is moving and the customer base is moving. They’re saying, ‘I don’t want to do this with 20 different service providers. I want to do this with one or maybe two.’ “Southern Tire Mart at Pilot Flying J really kind of changes the game in how we go to market. It says, ‘We have a network that’s going to be consistent with what you (receive) locally.’ “We’re trying to make it as seamless as we possibly can for the customer. When they come into a Southern Tire Mart at Pilot Flying J, they should receive the same” level of service as they would find at a traditional Southern Tire Mart location. Service offerings vary a bit, according to Boynton. “At Southern Tire Mart at Pilot Flying J, we’re doing a lot more mechanical work than we would do at a Southern Tire Mart store,” including preventive maintenance, truck inspections and more. “We can do those very, very effectively.” More complicated jobs — like engine repair — are farmed out

03_MTD_Feature-DOY.indd 34

to specialists. “We want customers to be in and out in two hours. And we don’t want to tie up our bays for six hours at a time.” Every Southern Tire Mart at Pilot Flying J location stocks retreads — the vast majority of which are manufactured at Southern Tire Mart plants. “For locations outside of our footprint, we’re partnering with other Bandag retreaders to be that provider and it’s worked out really well.” Some Southern Tire Mart at Pilot Flying J locations are running around the clock “and our goal is to get all locations to 24/7 service.” (Existing locations already operate emergency roadside service trucks on a 24/7 basis.) Speed of service “will be a key differentiator for us,” says Boynton. Long waits “are probably one of the biggest challenges in the truck stop channel right now.” Most Southern Tire Mart at Pilot Flying J stores will be greenfield locations. “We have a (standard) look and a feel because consistency is so important. It’s no different than a hotel chain. I know the experience I will have if I go to a Marriott property. I know it will be very consistent. We want to look, feel and operate the same way, too.” Boynton says deadlines to recoup initial investments will vary by location. “I don’t think we’re as deeply concerned about ‘It has to turn a profit by this or that time.’ “If it takes two years to get there, that’s OK — as long as we’re building a culture and providing service that customers want.” Customer demand will continue to dictate where Southern Tire Mart at Pilot Flying J sets up outlets, he explains. “I recently had an opportunity to sit down with a customer who said, ‘How fast can you build this thing? Forty locations is nice, but that’s nowhere near the saturation we want to see.’ “So we have to move very, very fast. The goal is to create that network. And Tommy and Jim want us to move at the speed that’s needed to get these stores up and running very quickly.”

MTD September 2021

9/8/21 10:27 AM

Congratulations to

Jim and Tommy Duff winners of the 2021 Modern Tire Dealer

Tire Dealer of the Year!

Thank you for your outstanding partnership from all of us at Hunter Engineering!

35_HUNTER_0921.indd 35

8/27/2021 1:12:56 PM

T i r e D e a l e r o f t h e Ye a r

“There are two mandates we operate under,” says Tommy. “One is that if the customer is right, we need sales growth. The other is that we have to be the most efficient people in the tire business.”

After working for TDS, Tolbert had moved to Tire Centers Inc. (TCI), which was owned by Michelin. The rumor mill was churning at the time. “My regional manager at TCI came to me and said, ‘I understand you’re thinking about going back to work for Jim and Tommy.’ And I said, ‘They haven’t made me an offer yet, but if they call me, I will.’ “He slid a piece of paper across the desk and said, ‘Write down how much it will take to keep you. And understand that Michelin has deeper pockets than Jim and Tommy.’ “I came back two days later and he said, ‘Well, what’s your number?’ And I said, ‘There isn’t a number. If they want me to work for them, I’m going to work for them.’ And I’ve never had a reason to look anywhere else.”

03_MTD_Feature-DOY.indd 36

‘WE’RE VERY AGGRESSIVE’

Southern Tire Mart entered an expansion phase. “We were very fortunate to have all these wonderful people come back,” says Jim. “We were growing and growing.” Jim and Tommy remained hands-on, which has continued to this day. (Up until the COVID-19 pandemic hit, they were on the road at least three days a week — every week — visiting customers and Southern Tire Mart stores.) “We don’t sit in our offices, waiting for things to come to us,” says Jim. “We’re very aggressive. During an average day, we might visit a customer or two and then visit a store. And every time we go to a store, Tommy is always looking at it and asking, ‘How can we make it better?’” “There are two mandates we operate under,” explains Tommy. MTD September 2021

9/2/21 1:44 PM

CONGRATULATIONS TO

SOUTHERN TIRE MART ON WINNING TIRE DEALER OF THE YEAR.

Congratulations to Tommy and Jim Duff, on your hard-earned success. For 48 years, Southern Tire Mart has focused on building strong customer relationships and providing the highest quality of workmanship. You continue to inspire everyone in the industry, and Michelin is honored to be a partner in your success.

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8/27/2021 1:18:17 PM

T i r e D e a l e r o f t h e Ye a r

CONGRATULATIONS

TOMMY DUFF & JIM DUFF

WINNERS OF THE 2021 MTD TIRE DEALER OF THE YEAR

03_MTD_Feature-DOY.indd 38

MTD September 2021

9/2/21 1:45 PM

“One is that if the customer is right, we need sales growth. The other is that we have to be the most efficient people in the tire business. “And the way you achieve that is by doing it right the first time. Our plants have to be perfect.” (Southern Tire Mart operates 24 retread plants, including one near Columbia, Miss., that retreads 1,200 units a day.) “Our administrative work has to be perfect. If you build (a retread) right, you don’t have adjustments. If you invoice right, you don’t have customers calling and wondering and then not paying you.” As Southern Tire Mart continued to grow, the brothers observed other dealers. “It was interesting to see how they could have pockets of excellence here and not so much there,” says Jim. “Our goal is for the customer to have the same experience in Corona, Calif., as he does in Tallahassee, Fla.,” says Tommy. “We’re no better than our last sale.” “You have to understand what the customer’s needs are,” says Jim. “That’s something I learned from Tommy. When a

Each Southern Tire Mart store manager who reaches $500,000 in sales at his or her outlet receives a custom Rolex from the Duffs. Members of Southern Tire Mart’s “Watch Club” are pictured with Tommy and Jim Duff.

CONGRATULATIONS to 2021 MTD Tire Dealer of the Year, Tommy and Jim Duff and the entire Southern Tire Mart family! We look forward to serving you for generations to come. w w w . M o d e r n T i r e D e a l e r. c o m

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The SSpirit pirit of Mohawk...the Mohawk...the Spirit Spirit of Commitment

The Spirit of Mohawk...the Spirit of Commitment

9/2/21 1:45 PM

T i r e D e a l e r o f t h e Ye a r Insights into Jim and Tommy Duff

Observations from members of Southern Tire Mart’s leadership team

“Our customers are the biggest driving force in making us better,” says David Tolbert (far left) with, from left to right, Keven Haddox, Jim Duff, Tommy Duff, John Boynton and Janet Price. “When a customer says, ‘I need this or want this,’ Jim and Tommy will find a way to do it.” Several members of the Duffs’ leadership team have been with them since the 1980s.

Despite its size and scope, Southern Tire Mart’s corporate structure is lean — and that’s by design. The Duffs work with a small leadership team at their state-of-the-art corporate office in Columbia, Miss. Several members of the group have been with Southern Tire Mart since the 1980s. Keven Haddox, who oversees the dealership’s business west of the Mississippi River, went to work for the Duffs and their father, company founder Ernest Duff, in 1985. “Jim and I went to kindergarten together and were friends through high school. I even had a set of retreads on my 1966 pickup truck that had come out of their retread plant! “I came out of college and had a job with Bristol Meyers as a rep. And Jim said, ‘Come work for us.’ I knew nothing about tires, but Jim is a pretty persistent guy. So I went to work for them. I worked in the retread plant.” Haddox was soon assigned to Southern Tire Mart’s store in Jackson, Miss. “I worked the front counter, took service calls — things like that.” He worked his way up to store manager in 1990. “We were a small company, but it’s the same now as it was then — very customer-focused. As we grew, we wore more hats. And I think today we’re somewhat the same.” Despite their success in other industries, Haddox says the Duffs remain “tire people” at heart. “This is what they know. This is what they’ve done the longest. And this is what they are probably most comfortable with.” After Jim and Tommy sold Southern Tire Mart to Bandag/Tire Distribution Systems Inc. (TDS) in 1997, “they said, ‘Oh my gosh, what have we done?’ I think that’s what still keeps them engaged with the company. They know what the other side is like. “Plus, when you’re in a position where you have something like a Southern Tire Mart, you want to say, ‘Let’s keep growing.’” David Tolbert is Haddox’s counterpart in the dealership’s eastern region. He met Tommy and Jim at a church function shortly after he had graduated from college. Tolbert was working for a bank at the time.

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“Tommy said, ‘I’d like you to come work for me.’ I went to Mr. Ernest’s home and visited for two hours. Tommy offered me an opportunity.” Tolbert started at Southern Tire Mart “by learning everything” and gained additional experience managing locations in Texas, Tennessee and Alabama. “Our customers are the biggest driving force in making us better,” he says. “When a customer says, ‘I need this or want this,’ Jim and Tommy will find a way to do it.” Southern Tire Mart runs more than 800 service trucks, but up until nine years ago, used a third-party phone service for dispatching. The Duffs brought all of that in-house and established a cutting-edge, 24/7 call center that employs nearly 100 people. “Customers can talk to a real Southern Tire Mart person who has access to inventory and can create a ticket and dispatch trucks,” says Tolbert. “They know tires. It’s not just an answering service.” The call center processed 175,000 road service calls last year and will exceed that number by the end of 2021. Janet Price, Southern Tire Mart’s chief financial officer, worked for the Duffs prior to the sale to Bandag/TDS. They asked her to return after they acquired the company from Bandag. “I didn’t have a second thought,” she says. “There was no hesitation at all. “I like their management style. They let you do your job and give you the flexibility to do your job. They are always interested in that bottom line number, but they are not micro-managers.” John Boynton joined Southern Tire Mart three years ago, but had known Jim and Tommy for more than 20 years when he worked for Bandag and later, Bridgestone Americas Inc. He says the brothers have an unparalleled ability to spot talent and focus on an employee’s positive qualities. “They have an innate ability to look at somebody and see their strengths, rather than looking for their weaknesses. They look at someone and say, ‘We don’t really care what they’re weak at, but they’re really good at this and we’re going to value that and push it as hard as we can.’”

MTD September 2021

9/7/21 1:22 PM

T i r e D e a l e r o f t h e Ye a r

Southern Tire Mart at Pilot Flying J is slated to open 200 stores within the next two-and-a-half years. “If we can get to that and get scale and service the fleets, that will give the customer the experience they need,” says Jim.

customer calls, you need to listen. There are times when we think we’re doing a great job, but when a customer tells us where we can improve, we listen. “We don’t sit back and think we’re right and the customer is wrong,” he continues. “We ask, ‘What are we doing wrong? What can we do better?’ “You learn so much more when you go in and ask, ‘What can I improve on? How can I make this better?’ We have that ability to look at something, self-analyze and say, ‘This is not working. We need to change it.’”

GROWTH ENGINE

Southern Tire Mart was the brothers’ sole business interest when they bought the company in 2003. “We worked 100 hours a week,” says Tommy.

“We’ve always pushed the envelope to grow and take care of the customer.” - JIM DUFF

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But with growth, came conflict — and not just with other dealers. “As we grew, our largest supplier” at the time “was not really happy with that,” says Tommy. “And sometimes Jim and I would get a little concerned about the irritation caused by going into a new market — perhaps thinking they didn’t want us there and wanted to protect their distribution in the same area.” This motivated the Duffs to invest in businesses outside of the tire industry. “We got into the transportation business,” says Tommy, by buying two struggling companies — KLLM Transport Services and Frozen Food Express — that today have a combined annual turnover of $1 billion. (KLLM is the second-largest temperature-controlled carrier in the U.S.) “Both were failing when we bought them and are great successes today. And that has allowed Jim and I to have relationships with people we would not normally have. “We have 5,000 trucks. We understand engines. We understand electronics. We understand what a driver is going to do and not do. And we really understand the cost” of operating a trucking fleet. “This gives us an advantage over somebody else who is just peddling something.” Under the umbrella of Duff Capital Investors, Jim and Tommy now own more than 20 non-tire businesses in a MTD September 2021

9/2/21 1:47 PM

API IS PROUD TO BE PARTNERED WITH THE BEST TOMMY DUFF

JIM DUFF

CONGRATULATIONS TO MODERN TIRE DEALER’S 2021 TIRE DEALER OF THE YEAR

QUALITY SPEAKS FOR ITSELF Steel-Belted Radial Commercial Truck Tires

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Steel-Belted Radial Commercial Truck Tires

8/20/2021 11:24:35 AM

Southern Tire Mart has 24 Bandag retread plants. Its most prolific plant produces 1,200 units per day. “The thing we love about the commercial tire business is that we are always measured,” says Tommy. “It’s not a transactional business. It’s a relationship business.”

CONGRATS JIM AND TOM DUFF

MTD 2021 Tire Dealer of the Year We are proud to have you as a partner and wish you continued success!

From Your Partners at

Jim & Tommy Duff

w w w . M o d e r n T i r e D e a l e r. c o m

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9/7/21 12:59 PM

T i r e D e a l e r o f t h e Ye a r ‘We have a sacred responsibility’

The Duffs put the ‘giving’ in the term ‘giving back’ Long before “giving back” became buzzwords, Jim and Tommy Duff had fully embraced the practice as an outgrowth of their faith. “We believe God has blessed us so much that it’s incumbent on us to help others,” says Tommy. “When someone has been blessed and has the ability, he also has an obligation, in our opinion, to give back,” says Jim. “That’s more important than spending money on ourselves.” The Duffs donate to a wide variety of organizations and charities. Last year alone, they gave away $41.1 million to various groups and were ranked number 38 on The List of America’s Top 50 Donors, an annual compilation that’s put together by the Chronicle of Philanthropy and also includes such names as Michael Bloomberg, Bill and Melinda Gates and others. The brothers are big supporters of the higher education system in their home state of Mississippi, giving to The University of Southern Mississippi, The University of Mississippi and other institutions. A building at The University of Southern Mississippi, The Jim & Thomas Duff Athletic Center, bears their name, as will the new STEM (Science, Technology, Engineering and Mathematics) Center at The University of Mississippi that is expected to become one of the country’s leading STEM education facilities. Each year, the Duffs donate new Freightliner trucks to four universities in Mississippi to transport football equipment. The trucks are wrapped in the universities’ colors and graphics. The Duffs even provide drivers for the trucks and pick up all expenses associated with their operation. “Jim and I have always said that the problems in our state and this country are not about who has what and who doesn’t,” says Tommy. “They’re educational. People should have an education. And people should have the ability to do that, regardless of their means. “Education transforms lives. It makes better families. It makes better employees. And if Jim and I can help in that, we think we’re doing good.” “I didn’t do well in school,” reveals Jim. “I didn’t finish college. And I’ve competed during my whole adult life with people who are very educated. So education to me is very important. It brings me great satisfaction to give to our wonderful universities that will change people’s lives. That’s a good feeling for me.” The Duffs also donate generously to the communities in which Southern Tire Mart stores operate, says Lindsey Schwaner, who leads the dealership’s marketing team. In 2017, Baton Rouge, La., where Southern Tire Mart has a store, was devastated by flooding. “Nobody was prepared for it,” she says. “All of the Duff companies came up with a game plan to help our store there and also the community. “We stuffed a Southern Tire Mart trailer. People donated clothes, food, gift cards — anything they could to help — and we sent the trailer to Baton Rouge.”

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Each year, the Duffs donate brand new Freightliner trucks to four universities in Mississippi to transport football equipment. They even provide drivers for the vehicles and pick up all expenses associated with their operation.

When natural disasters strike, Southern Tire Mart trucks get emergency response vehicles back on the road. Southern Tire Mart employees also help with clean-up work.

Southern Tire Mart employees drove in from “all over the country to assist,” she says. “They cleaned the store, houses — the whole community. And it wasn’t just our store managers. It was tire techs and other people.” Each time a natural disaster hits, “we do the same thing.” Southern Tire Mart also sends service trucks to help keep first responder vehicles like police cars, fire trucks, ambulances and public utility trucks up and running when disasters occur. And Jim and Tommy are big boosters of their hometown of Columbia, Miss. It is estimated that 15% of all jobs in Marion County, where Columbia is located, belong to Duff-related companies. “That was important to us because that’s where we grew up,” says Jim. “We want to give back wherever we can.” “Jim and I understand that we have a sacred responsibility to be good stewards,” says Tommy. “And we want to see our community and Mississippi prosper and succeed.”

MTD September 2021

9/2/21 1:48 PM

CONGRATULATIONS TO

TOMMY & JIM DUFF MTD 2021 Tire Dealer of the Year MAXAM Tire congratulates Tommy and Jim Duff, Presidents of Southern Tire Mart for being named MTD’s Tire Dealer of the Year. Providing unparalleled customer service and top tier products, Southern Tire Mart has paved their way to success by staying true to their core values. As a Business Solutions Provider, we at MAXAM Tire share this core value and we are proud to be a preferred partner with a dealer who shares our vision. Congratulations to Tommy and Jim Duff, from all of us at MAXAM Tire.

MAXAMTIRE.COM

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T i r e D e a l e r o f t h e Ye a r

Southern Tire Mart created an in-house road service call center. “Customers can talk to a real Southern Tire Mart person who has access to inventory and can create a ticket and dispatch trucks,” says David Tolbert. The center processes 175,000 emergency road service calls annually. Southern Tire Mart’s service trucks operate around the clock.

work with them. To be able to make that personal connection gave us energy.” The transaction boosted Southern Tire Mart’s store count by more than 50%. Questions arose about adding layers of management to oversee the dramatically expanded holdings. “I remember when we were working on the GCR acquisition — knowing that it was going to be a big undertaking — I mentioned to Jim and Tommy that we needed to start thinking about building up our support structure so these stores could be assimilated faster,” says Boynton. “Tommy specifically said, ‘We’re not interested in that.’ I asked, ‘How are you going to manage this thing?’ And he said,

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‘By being true to what brought us here.’ And he was exactly spot-on.” The Duffs have avoided adding layers of management to Southern Tire Mart over the years. “When you have a very layered organization, the processes get slowed down,” says Boynton. “Things can be misinterpreted or reinterpreted. “If we have a big decision to make, it can flow through our organization very quickly. When store managers have a question or a problem, they have a direct connection to Jim and Tommy. And the first response they will get from Jim and Tommy is usually, ‘What do you think? What are your thoughts on it?’ MTD September 2021

9/8/21 10:28 AM

Tommy Duff Co-Owner, Southern Tire Mart

Jim Duff Co-Owner, Southern Tire Mart

2021 MTD Tire Dealer of the Year Congratulations to Tommy and Jim Duff of Southern Tire Mart on this major achievement. At Continental Tire, we value your partnership as a member of our dealer family and we look forward to celebrating continued success.

CONTINENTALTIRE.COM | CONTINENTAL-TRUCK.COM

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T i r e D e a l e r o f t h e Ye a r Are entrepreneurs born or made? It all depends, say Jim and Tommy Duff

“Entrepreneurship is a tough road,” says Jim Duff. “You’re exposed all of the time to pressures. But we like it.” “Some people naturally have” an entrepreneurial spirit, says Tommy. “It’s innate to them. Some people learn it. And we find there can be a great mixture of both.” The Duffs encourage their store managers to think like business owners, according to Tommy. “Our store managers are entrepreneurs. They know their pricing. They know their programs. They know their support structure. “The big thing is they have backing, so they won’t fail financially. They can concentrate on their people and customers. And as they progress, they make more money. “We have store managers who make seven figures and I don’t know of other tire companies that can walk around “Some people natusaying that.” rally have” an entre“You’ve got to have people preneurial spirit, says who believe in you and want to Tommy. “It’s innate to follow you,” says Jim. “There’s them. Some people learn it. And we find been a lot of great, brilliant there can be a great business people who just can’t mixture of both.” get people to follow them.” “It really comes down to trust,” adds Tommy. “When we interview people, we’ll tell them, ‘This is what we expect of you and this is what you can expect of us,’” says Jim. “And I’ll ask, “Do you agree with this?’ “If we’re having a problem with someone, we’ll explain what the problem is and will ask, ‘Do you agree with us?’ And 99% of the time, they will say, ‘You’re right.’” “We had no mentor” during Southern Tire Mart’s early days, says Tommy. “We just came up with ways we thought we should operate and it was mostly ways we thought other people would want to be treated.” Southern Tire Mart does not offer employment contracts. “When a company has to make an employee sign an employment agreement, that’s not a good way to operate,” notes Tommy. “Is that the correct philosophy?” asks Jim. “I don’t know if it is or not. That’s just what we’ve always done. It’s worked for us. “We’ve also been smart enough to say, ‘If something is not working well, we need “You’ve got to have people who believe to address it.’ People say, “If in you and want to you have good judgement and follow you,” says Jim. common sense, you’ll be suc“There’s been a lot of cessful.’ But I also think if you great, brilliant business people who just can’t self-analyze and realize can’t get people to ‘The problem might be me,’ follow them.” then you’re in trouble.”

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T i r e D e a l e r o f t h e Ye a r

The Duffs helped persuade Continental Tire the Americas LLC to place its new truck tire plant in Mississippi. Southern Tire Mart took delivery of the facility’s first tire last fall. The brothers “do what they say,” notes Continental executive Tom Fanning.

CONGRATULATIONS

TOMMY & JIM DUFF AND THE SOUTHERN TIRE MART TEAM FOR BEING

MTD'S TIRE DEALER OF THE YEAR!

THANK YOU FOR YOUR VALUED PARTNERSHIP WITH THE CARLSTAR GROUP!

From the big idea to the smallest detail, Regions means business. Trusted business expertise – it’s at Regions. We’re here to help your business thrive in ways you might not expect. At Regions, you’ll find one of the industry’s most complete suites of business tools along with the insight and personal service you need to accomplish your goals. For a broad range of product offerings and a local presence for everyday business needs, you don’t have to look far. Just take your next step with Regions. Congratulations, Tommy and Jim Duff, of Southern Tire Mart!

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MTD September 2021

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“I can’t tell you how many times I’ve heard Jim and Tommy then say, ‘That’s the right decision.’” “There is no red tape or layers of regional managers and district managers,” says Tolbert. “Our store managers can make decisions and go with it.” “We want to be the market leader — period,” says Haddox. “So whatever the market is, we want our people to go after that. Our corporate office is set up to support the people in the field so they can take care of customers. “Whenever I’m talking to our managers, I say, ‘Here’s the big road. There’s a ditch over there and a ditch over here. You can operate on one side of the road or the other side of the road. You can operate in the middle of the road. Just travel in the same direction we’re going. And stay out of the ditches.’”

“We’ve never benchmarked off of someone else. We basically benchmark off ourselves.” - TO M M Y D U F F

Southern Tire Mart is not big on executive titles, either, says Boynton. “It goes back to the culture of the organization. ‘We just need you to make things happen. Take care of the customer.’” The biggest advantage of maintaining a simple structure is that “everybody understands their role and everybody has a report card concerning their role,” says Tommy. “If you ask any Southern Tire Mart manager, ‘Who do you report to?’ they will say, ‘Jim and Tommy.’ “We’ve observed the owners of other tire companies,” Tommy continues. “They all have these vice presidents and everything. We empower our folks. They know Southern Tire Mart’s philosophy. They know the guidelines they’re supposed to follow. They know what we expect. “And a lot of it is just doing the right thing. We don’t ever want to take advantage of a customer. We say, ‘Treat them fairly and always do the right thing.’” “We want that return business,” says Jim. “Taking advantage of customers is bad business. It’s not right.” “We hire 25 to 30 new folks every year,” says Tommy. “We grow them. We teach them. And when they’re ready, they get their opportunity to grow. “They realize they don’t need middle management. They are the management. We respect them and treat them that way. And people respond to that.”

Congratulations to Tommy & Jim Duff on 2021 Tire Dealer of the Year! -From your friends at McGee Company, we appreciate your partnership & growth as we celebrate our 70th.

Tire Service Supplies

Since 1951

Compressed Air Specialists Automotive Service Equipment

w w w . M o d e r n T i r e D e a l e r. c o m

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TTi ir ree DDeeaal leer r oof f tthhee YYeeaar r

The tire industry “is a wonderful business,” says Tommy. “It’s not cyclical, like oil and others. And the people in the tire industry are just unique, good people. Once they get in the commercial part, I laugh and say, ‘You’ll never get out.’”

Employees are motivated by respect and consistency, says Jim. The average Southern Tire Mart store manager has been in that position for more than 12 years. “We don’t change our pay packages or our commissions,” says Jim. “They’ve been the same forever. We’re blunt with our people. We expect them to be adults. “There’s not a lot of politics with us. We’ve always been an open company. We don’t hide numbers. Our employees know exactly what they are getting and what we need them to do. “They know they have to take care of the customer,” he continues. “It’s not a one-time, ‘I’m-going-to-hammer-him’ thing. For their business to grow, they need to take care of these people, so they will go to the nth degree to make sure that the customer is happy.” “Everybody knows what our managers make,” says Tommy. “They can look at the financials and say, ‘You’re doing well at your store. Help me understand how I can do better.’”

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MAJOR INFLUENCERS

Several years ago, the Duffs discovered that two of their biggest tire suppliers, Continental Tire the Americas LLC and Yokohama Tire Corp., were each planning to establish new truck tire manufacturing plants in the U.S. This presented another opportunity — to help convince Continental and Yokohama executives to place those plants in Mississippi. Tommy helped broker meetings between the governor of Mississippi and decision makers at each company. “We went to Japan,” says Tommy. “We went to Germany. We went together. “It was important to us because it’s good for our state and also good for those manufacturers. “During my first conversation with the president of Yokohama, we were playing golf and I said, ‘You need to be a player in Mississippi.’ MTD September 2021

9/7/21 1:05 PM

C O N G R AT U L AT I O N S

Tommy and Jim Duff Owners of Southern Tire Mart 2021 MTD

TIRE DEALER OF THE YEAR

Thank you for an outstanding partnership!

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T i r e D e a l e r o f t h e Ye a r “We also made a commitment to those manufacturers that if they would put those plants here, they would be very pleasantly surprised with our purchases. “Mississippi had to offer a good incentive package, but it also helped that their largest customers are sitting right here.” The Continental plant, which is located in Clinton, Miss., shipped its first tire to Southern Tire Mart last October. “Certainly, Southern Tire Mart being headquartered in Mississippi was an influencing factor in Continental’s choice for the new plant location,” says Tom Fanning, head of U.S. market, truck tires, for Continental. “It only made sense.” Yokohama opened its commercial truck tire plant in West Point, Miss., in 2015. Jim credits his brother with bringing both factories to Southern Tire Mart’s home state. “That was Tommy telling both companies’ hierarchies, ‘Hey, this is a great state. This is a great opportunity. This state will embrace you.’ He’s the one who did that.” “Tommy and Jim have great respect for the people of Mississippi and always talk very highly about their work ethic and how warm and friendly everyone is,” says Dan Funkhouser, vice president of commercial sales, Yokohama. “They are very proud of the state and of being Mississipians and will go out of their way to help the state — including attracting new business opportunities — any way they can.” Jim and Tommy “do what they say and say what they do,”

says Fanning. “Their openness and transparency is such a valued trait.”

A NEW VENTURE

The Duffs’ latest major initiative — a joint, co-branded venture with Pilot Flying J, the largest truck stop chain in the U.S. — was announced this past January. Pilot Flying J has a presence in 40 states. And in that, the brothers saw an opportunity for Southern Tire Mart. “For years, we had been seeing the need” for dedicated tire sales and service facilities at truck stop locations, according to Tommy. “Truck stops have the trucks in there before anybody, but they can be inefficient” when it comes to tire work.

“The future is so bright for Southern Tire Mart, we need to make sure we give it the opportunity it needs.” - JIM DUFF

THE POWER OF

SUCCESS Interstate Batteries® would like to congratulate partners

TOMMY DUFF & JIM DUFF and Southern Tire Mart for being named 2021 Modern Tire Dealer of the Year. We’re proud to partner with you.

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Jim and Tommy had discussed opportunities in the truck stop channel with some tire suppliers, “but they never really jumped on it.” At the same time, truck stop chains like Love’s Travel Stops started investing heavily in tire and retread sales and service. The Duffs sprung into action and met with Jimmy Haslam, Pilot Flying J’s owner. “Candidly, Pilot had two other proposals in hand and they went with ours,” says Tommy. “Private equity groups were going to go in without knowing what they were doing. We knew what to do. “Pilot is the largest distributor of fuel in the country. They have 800-plus truck stops.” Hours-of-service laws mean truck drivers are often stuck at truck stops overnight or even during the day. At the same time, truckers want to maximize uptime when their rigs are rolling. “If they have a breakdown and it takes over three hours, that’s extremely expensive,” says Tommy. The Duffs have tasked Boynton with growing the Southern Tire Mart at Pilot Flying J network. (See sidebar on page 34.) Jim says that up until joining forces with Southern Tire Mart, Pilot “really didn’t have a tire program that was working and they knew that. That’s why they have embraced us so much.” “And Jimmy Haslam is a very honorable man,” says Tommy. “When he says something, he does it, so we can deal in an area of trust.”

Southern Tire Mart at Pilot Flying J is a separate entity from Southern Tire Mart. “But it will be like coming to a regular Southern Tire Mart,” says Jim. “Customers can buy retreads. They can buy new tires.” The idea is to place Southern Tire Mart at Pilot Flying J outlets in areas where Southern Tire Mart does not have a presence. “We’re working with Pilot on where their needs are and where their volume is,” says Jim. “We don’t want our competition to think we’re coming into the market to open a Southern Tire Mart store. But it’s a great opportunity to be more efficient with the customer.” Two hundred Southern Tire Mart at Pilot Flying J stores will pop up within the next two-and-a-half years. Forty are already up and running. “If we can get to that and get scale and service the fleets, that will give the customer the experience they need. Whether it’s Southern Tire Mart or Southern Tire Mart at Pilot Flying J, it’s about consistency, quality and not much downtime.” Pilot Flying J officials say the Duffs have been enthusiastic partners.“It has been really rewarding to see how everyone is invested in the success of this venture,” says James Chiu, senior director of strategy and execution for Pilot Flying J. “They’re always talking about the same things we value, which is providing consistent, fast and friendly service. They are 100% focused on reducing turnaround time for drivers. “Jim and Tommy are uniquely gifted at getting into the

www.yokohama-oht.com | 800-343-3276 | @yokohamaohta

CONGRATULATIONS All of us at Yokohama Off-Highway Tires America, Inc., are delighted to see you honored by Modern Tire Dealer for your dedication and professionalism. You've built a great business and great customer relationships. Congratulations on this well-deserved recognition!

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T i r e D e a l e r o f t h e Ye a r minds of drivers and what’s important to them, so ultimately you end up with long-term value and customers who are happy to come back and get that service again. “The first time I met the Duff brothers was during the initial stages of negotiating Southern Tire Mart at Pilot Flying J,” recalls Chiu Tommy took Chiu on a tour of Southern Tire Mart’s retread plant in Houston, Texas. “He knew all the equipment. He explained to me how all of it works. He knew everyone in the plant by name and shook their hands. “It was a very collegial interaction,” he continues. “And this is who Jim and Tommy are. They know their teams. They are very hands-on. And they are very accessible. “When I think about our dealings with them, they have always been extremely fair and they’ve always had integrity.

“If you don’t love what you do, you will not be successful.” - TO M M Y D U F F

When you get to the point of agreement, they do exactly what they say they will do. “All of that combines to make the best kind of partner,” says Chiu.

‘RELATIONSHIP BUSINESS’

In 2017, Southern Tire Mart — for the first time — found itself occupying the number one spot on MTD’s annual list of the largest retreaders in the United States. (MTD began ranking the country’s biggest retreaders based on their daily production in 1988.) Today, Southern Tire Mart retreads 5,700 medium truck tires per day, according to MTD research. By comparison, Goodyear Tire & Rubber Co. retreads 5,200 truck tires per day, Bridgestone’s GCR operation retreads 2,180 truck tire units daily and Continental produces around 630 truck tire retreads per day. The Duffs maintain that Southern Tire Mart was the biggest retreader in the U.S. long before the 2017 designation. They also believe that Southern Tire Mart’s plant near Columbia, Miss., is the biggest retreading facility in the U.S., based on production volume. “The thing we love about the commercial tire business is that we are always measured,” says Tommy. “It’s not a transactional business. It’s a relationship business. “Whether it’s cost-per-mile, cost-per-engine-hour —

On behalf of Trelleborg, congratulations to the Duff brothers on being the 2021 MTD Tire Dealer of the Year. You guys deserve it.

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MTD September 2021

9/2/21 1:53 PM

whatever — we’re always measured. And retreading is an integral part of that. “We constantly preach that a quality new tire and a quality retread yields the greatest savings. When a customer buys one new tire, he’s hopefully going to have it retreaded three times. “So retreading has to be viable and a retread has to have the quality of a new tire for this to work,” he explains. Some fleets report to the Duffs that they are paying too much for new tires, according to Tommy. “We’ll often say, ‘It may be too high. It may be too low. But what we’re concerned with is what your costs are. Your price is one thing. Your cost is another.’ “When we go into fleets, we have to make sure they have the right mixture of new tires and retreads.” “They have to have a reason — a desire — to see a cost savings,” says Jim. “You have to educate the customer. I don’t know of any trucker who doesn’t need to run retreads because it’s an efficient cost savings. It’s a harder sell, but it’s good for the customer.” The Duffs believe that the market has evolved to favor commercial tire dealerships that have a larger footprint. “As customers have gotten bigger and have demanded more consistency, they want larger dealers to work with,” says Tommy. “To their credit, they have finally understood that. Have they been a little slow to the game? Probably so. But they’ve realized they need that distribution throughout the country.”

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“We’ve always pushed the envelope to grow and take care of the customer,” says Jim. “The customer wants the best, most efficient service and consistency. Things seem to be changing and this really gives Southern Tire Mart a wonderful opportunity.”

‘OUR BIGGEST ASSET’

Tommy uses the word “unorthodox” when describing the brothers’ management style. “Jim and I have always believed there is a hard way of running a company and a soft way of running a company,” he says. “The hard way of running a company is living strictly on the financials, people are merely a number and they either make a profit or you dump them. “The soft way of running a business is being involved with your people, letting them make the right decisions and not being as concerned with the financials as probably most other people would be. “If a new store loses money initially, that’s fine. They’re building their business. “We’re far more interested in the soft side, which includes integrity, empowerment and the fact that employees see the owners working just as hard as they do.” Action — not countless meetings — is the preferred course. “We have one managers’ meeting a year and it lasts two days,” says Tommy. “And it’s set in stone that it will never go over that.

9/9/21 10:14 AM

T i r e D e a l e r o f t h e Ye a r

“We don’t think we’re the best,” says Jim. “We don’t think we’re the most successful. We’re not the most brilliant. But we love business and we like people. I never thought all of this would happen.”

“We don’t have daily or weekly updates. Do we understand the financials? Completely. Are our managers taught to understand the financials? Very much. “We look at the P&Ls every month when they come out. Every store manager will write a memo to us each month and he’ll say what he did great, what he did bad and what he needs help with. He might need a service truck. He might have a problem in another area. And we’ll follow through.” “We’re more interested in hearing about the bad because the good kind of speaks for itself,” notes Jim. “The bad (means) opportunity and learning.” “A business that’s run the hard way will never be as successful as it can, because it doesn’t have the respect” of employees, says Tommy. That approach motivates employees to take ownership of their work, say members of Southern Tire Mart’s leadership team. And the Duffs are always there to offer guidance. “Jim and Tommy will sometimes reframe an issue and will say, ‘You need to think bigger. Why can’t we do this?’” says Boynton. “They do an outstanding job of keeping the big picture in mind. “People love being here because it’s not routine. It’s ‘We’re going somewhere and guess what? Things are going to move fast.’ “The same thing that happens today with that excitement, vision and energy was happening here 10 years ago and 20 years ago and 30 years ago. That’s the growth mechanism.” “Jim and Tommy hire good people and trust them to run their business,” says Tolbert. “And anytime we have an employee who fails or is not successful, the first thing they ask is, ‘Where did we fail that person?’ It’s not ‘That person was no good.” It’s ‘What went wrong with us?’ “They see that individual as a person, not just an asset. I think that’s a unique characteristic.” “Jim and Tommy aren’t superhuman,” says Haddox. “They can’t know 3,000 people. But if a person wants to ask a question, they have an open ear.”

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Price says the Duffs understand that each Southern Tire Mart outlet operates within a unique environment. “They want the stores to be profitable, but some ratios can vary by store.” Other targets are encouraged. “We like our stores to stay 50% below payroll to gross profit,” says Price. “But our managers are basically the entrepreneurs of their own stores.” “The dominant player in each market is that store manager and his crew,” says Jim. “Southern Tire Mart’s greatest asset is its people. You can have the best location in the world, the nicest building — but if you have bad folks who don’t care, you’re going to have a horrible place. “You can have a hole in the wall, but if you have the right people — who are hard charging and who care — you will dominate the market.”

TAKING CARE OF BUSINESS

Jim Duff is 60. Tommy Duff is 64. While still young, they are financially set and could easily walk away from Southern Tire Mart. In fact, Tommy says the two are approached by suitors “all the time.” But the brothers have no interest in selling the company — or even easing off the gas pedal. And while Jim admits that he and Tommy could stand to celebrate their wins more often, self-congratulation isn’t their style. “Never have we congratulated each other and said, ‘We’ve done it now!’” he reveals. “We just move to the next target,” says Tommy. “People say we’re the largest commercial tire dealer and that’s nice,” notes Jim. “But the size of our company doesn’t matter. Companies kind of reach a point where they max out and say, ‘This is the time to sell and let someone else take it to the next level.’ “But the future is so bright for Southern Tire Mart, we need to make sure we give it the opportunity it needs. We want to make sure we take care of Southern Tire Mart. And when I say ‘Southern Tire Mart,’ I mean the people here.” MTD September 2021

9/7/21 1:23 PM

Tommy says the brothers have “a sacred responsibility” to maintain the company’s momentum for the security and well-being of its employees and their families. This loyalty, in turn, inspires employees, says Tolbert, who likens Jim and Tommy to “shepherds. The shepherd goes in front of the sheep and the sheep follow him because they respect and love him, whereas the sheepherder is in the back, cracking the whip to make the sheep go in a certain direction. “Tommy and Jim — in how they are as people — want to be more like shepherds,” says Tolbert. The brothers also enjoy Southern Tire Mart’s status as an independently owned and operated business. They are the company’s sole owners. Each owns 50% of the enterprise. Jim says the greatest thing about being independent is “when you tell someone you can honor your word. “And we empower our people to do the same thing. I hate politics. We try to have the least amount of politics that we can have.” That doesn’t mean the brothers always see eye-to-eye. “But when you have two owners who are equal, you have to make sure the other is agreeable,” says Jim, who adds that Tommy keeps him in check and vice versa. “If I feel like this is the way to go and decide to take something in a direction that will hurt the company because nobody will tell me ‘no,’ that’s a bad thing. And that happens a lot of times in companies. He and I can disagree.”

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Tommy says they plan to stay as closely engaged in Southern Tire Mart’s day-to-day activities as they’ve ever been. “We sat back for three-and-a-half years” after Bandag/ TDS bought Southern Tire Mart “and it was the worst time of our lives,” he explains. “If you don’t love what you do, you will not be successful. And even at our age, we’ll probably out-work you.” “We feel like as long as we have the ability to do this, we’re going to continue to do it,” says Jim. “We’ve made a lot of mistakes in life — I’m sure there have been millions — but we’ve been blessed way beyond our abilities and we’ve been blessed by having good people who want to be part of our team. And they are just as big of a part of it as we are. “We don’t think we’re the best. We don’t think we’re the most successful. We’re not the most brilliant. But we love business and we like people. “I never thought all of this would happen. People ask, “What’s your goal?’ I achieved my goals a long time ago. “Most people who run companies and get to a certain level are not engaged anymore. The minute we’re not engaged in the business anymore, I hope we’re smart enough to get out. “I can’t say this enough,” says Jim. “We don’t want to blow it with Southern Tire Mart. We want to take it to the level it needs to go to. And hopefully, Tommy and I have the ability to do that.” ■

9/2/21 1:54 PM

SEMA Show/AAPEX preview Left: The automotive aftermarket is preparing to return to Las Vegas for the 2021 SEMA Show and AAPEX after the COVID-19 pandemic canceled the 2020 edition of Industry Week.

Below: The Tire Industry Association will celebrate its 100th anniversary with special pre-SEMA Show events.

TIA to finally celebrate 100 years SEMA SHOW AND AAPEX RETURN AFTER PANDEMIC SHUTDOWN By

MTD Staff

he Tire Industry Association (TIA) will celebrate its centennial, albeit belatedly, as it kicks off the opening of Industry Week and the 2021 Specialty Equipment Market Association (SEMA) Show and Automotive Aftermarket Products Expo (AAPEX) on Nov. 1 in Las Vegas, Nev. Both industry shows are scheduled to return to in-person events in November after the coronavirus forced them into online-only affairs a year ago. The COVID-19 pandemic also forced the cancellation of most of TIA’s year-long centennial celebration. “It is exciting to finally be able to celebrate TIA’s memorable 100-year history and to gather the extended TIA family at the Global Tire Expo and SEMA Show,”

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says TIA CEO Roy Littlefield. “We look forward to celebrating with TIA members and friends as we toast the past and celebrate the future.”

10:45 a.m. to 11:15 a.m.: TIA annual membership meeting 11:30 a.m. to 1 p.m.: Tire Industry Honors luncheon (complimentary ticketed event)

SCHEDULE OF EVENTS

During the membership meeting and luncheon, the next president of the TIA board will take his seat. TIA also will honor Tire Industry Hall of Fame inductees, announce the Michelin/TIA scholarship winners and recognize the association’s state Leadership Achievement Award winner.

TIA will kick things off with a fundraising benefit at Topgolf in Las Vegas from 2 p.m. to 4 p.m. on Sunday, Oct. 31. Tickets are $150 per person and the proceeds will benefit TIA’s government affairs work and political action committee. The Nov. 1 events will run on a slightly different schedule than in typical years to make way for the evening centennial celebration reception and program. All events on Monday will be held at The Cosmopolitan, TIA’s host hotel for this year’s show. They will include:

6 p.m. to 7:30 p.m.: 100th Anniversary Celebration Reception 7:30 p.m. to 10 p.m.: 100th Anniversary Program (tickets are $25 per person) The evening program will focus fully on MTD September 2021

9/2/21 1:55 PM

TIA’s 100th anniversary. The program will feature Rocky Bleier, a former NFL Super Bowl champion and decorated Vietnam War veteran. (Bleier’s appearance is sponsored by Goodyear Tire & Rubber Co. and the evening’s entertainment is sponsored by Bridgestone Americas Inc.) Those who want to attend the Sunday or Monday functions can fill out the ticket request form available on TIA’s website. On Tuesday, Nov. 2, when the SEMA Show and Global Tire Expo open at the Las Vegas Convention Center, TIA will stage the first of two days of educational sessions. Those sessions will be held in classrooms on the lower level of the Las Vegas Convention Center’s South Hall:

old versus new tools during this session. 2 p.m. to 3 p.m.: Management at Two: Training Technicians and Service Advisors with Micro Learning and Artificial Intelligence. The next generation of automotive talent relies on connected devices now more than ever. Aftermarket education experts will cover how to train

employees efficiently and also create development requirements. TIA also will hold a press conference inside its SEMA Show booth (No. 40066) on Nov. 2, starting at 11:10 a.m. Outside of TIA activities, SEMA will host its own catalog of 100-plus seminars and educational sessions.

Come visit us at SEMA booth 41013

10 a.m. to 11 a.m.: Automotive at 10: Top 10 Tips for Technicians. The TIA training team will highlight the top 10 things every tire technician should know. Topics will include torque and clamping force, vehicle lifting, plus-sizing, inflation safety, demounting, mounting and other key aspects of tire service. 10 a.m. to 11 a.m.: Truck Tires at 10: Road Service Safety. A panel of tire service, health and safety professionals will cover all angles of emergency road service safety, including driver education. 2 p.m. to 3:30 p.m.: Tires at Two: Successful Tire Dealers Share Their Secrets. Tire dealers will talk about what has made them successful. Sessions to be held on Wednesday, Nov. 3, will include: 10 a.m. to 11 a.m.: Automotive at 10: Preventing Ride Complaints. Noise, vibration and harshness concerns no longer have to require trial and error fixes, as technology, tools and best practices can help. Balancing experts from Hennessy Industries Inc. and Hunter Engineering Co. will join TIA’s training team to provide tips on how to diagnose, repair and avoid comebacks altogether. 10 a.m. to 11 a.m.: Truck Tires at 10: Impact Wrench Technology. For decades, the one-inch pneumatic impact wrench has been the problem solver in commercial tire dealerships, but now smaller, lighter-weight and cordless tools are changing things. TIA’s trainers will take on the debate of w w w . M o d e r n T i r e D e a l e r. c o m

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Auto service

“The vast majority of our brake work comes by performing thorough inspections of vehicles when they come in for other, more frequent needs, such as an oil change, tire rotations or state inspections,” says Tim Winkeler, CEO and president of Auburn, Maine-based VIP Tires & Service.

Inspection process is best way to sell brake service, says VIP’s Winkeler PLUS, A LOOK AT HOT TRENDS IN BRAKE SYSTEMS By

Ron Ledgard

n almost every facet of car maintenance, processes are the key. For almost every process, there is a step-by-step guide that allows for consistent and successful work. Brake system work is no different. Needed brake service comes into the spotlight most often through vehicle inspections, says Tim Winkeler, CEO and president of Auburn, Maine-based VIP Tires & Service. “The vast majority of our brake work comes by performing thorough inspections of vehicles when they come in for other, more frequent needs, such as an oil change, tire rotations or state inspections,” explains Winkeler. “When our teams perform thorough inspections, our brake business increases.” Another way to get vehicle owners’ attention is with specials. Winkeler says his stores run a promotion in the spring, usually April. A normal promotion offers 50% off the price of brake pads. The dealership maintains its usual price for brake rotors and labor in those cases. Winkeler, who oversees more than 60

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stores throughout New England, points to his company’s engagement process as a contributor, too. “We internally call (it) ‘Going Five-forFive,’ as there are five keys steps,” he says. They include taking the customer through the job write-up, asking them to join a rewards program, performing a vehicle inspection, introducing customers to the technician who is working on their vehicle and asking customers to provide a Google review. The technician performs “a multi-point inspection (MPI) as the first priority after the vehicle is pulled into the bay,” says Winkeler. “When the technician performs a good MPI in a timely manner — using our tablets (and) doing a digital inspection — it gives the sales staff the information they need to then bring the customer out to the car in the shop and talk about what the technician has found”. On the supply side, Winkeler says that VIP Tires & Service does not communicate with the manufacturers of brake parts, “but we do communicate regularly with the parts stores that we buy our brake parts from. In

this case, that is O’Reilly Auto Parts. We meet with O’Reilly leadership on a regular basis to discuss how our purchases of each category of parts are trending. “We also get O’Reilly’s support for marketing, which we apply to discounted brake pads when we run that promotion.”

BEST PRACTICES FOR BRAKES

MTD recently asked brake suppliers how they help and train tire dealers and technicians on braking systems and what’s new. Gil Pulliam, senior manager, aftermarket sales, ADVICS North America Inc., says “the primary point we make to them is there is a reason why the manufacturer designed the brake system the way they did and with the quality level of parts they used. “If ceramic brake pads were used to achieve the same braking performance, that should be considered in replacement. The weight of rotors, level of brake fluid — all of these tie to the delivery of the same braking performance the customer felt when they first drove that car off the dealer’s lot. MTD September 2021

9/8/21 10:53 AM

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Auto service We also share the connection between cost and quality.” Mike Eldard, aftermarket national sales manager, Akebono Brake Corp., has found that the most effective way to train technicians is through face-to-face interactions. “We can personalize the discussion. When the service advisors and technicians are informed, it makes their job of talking to the customer that much easier.” He emphasizes the importance of starting with quality parts. “Cheaper brake pads cost you a lot more,” he notes. “If a customer had quality, low-dusting ceramic brakes as original equipment and the technician replaces (them) with an inferior product, the customer will not be satisfied. “Either they (will) come back and request a fix, which results in time and money out of the shop’s pocket” or they will “take their car somewhere to be worked on. In both cases, the shop loses.” ADVICS and Akebono officials also discussed braking systems trends. Brake components “have been really stable for the last 20 years, with the exception of one area: stability control modules,” says Pulliam. “This unit is placed between the master cylinder and the wheels to ensure even distribution to all of the corners. “So from the brake manufacturer’s side, if there is an issue with that unit, our solution is to replace it. “But there are aftermarket options of programming or reflashing those units and the training for that typically comes from the device companies”. Pulliam says that overall, braking system designs “have been very stable and until the electric/hybrid market becomes greater than 5% of vehicles in operation and leans on more regenerative braking, we don’t see any significant changes to how we stop cars.” Bob Peters, chief brake engineer at Akebono, says three important, brakerelated trends come to mind: 1. Legislation. Peters says California and the state of Washington both have enacted regulations that restrict the amount of copper used in brake pads. As of Jan. 1, 2021, that level is limited to no more than 5% by weight. In both states, this same regulation will limit the use of copper to less than half of

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On training technicians, Gil Pulliam, senior manager, aftermarket sales, ADVICS North America Inc., says, “We also share the connection between cost and quality.”

1% by weight, effective Jan. 1, 2025. In many cases, vehicle manufacturers have decided to go directly to the 2025 “copper-free” step in 2021, according to Peters. “We have engineered our ceramic brake pads to meet the regulations with very Bob Peters, chief brake engineer at Akebono, says dealers good results. should keep an eye on three trends: legislation impacting “There is very little brake components, the proliferation of electronic parking — if any — difference brakes and the presence of larger rotors on vehicles. in performance, dust or life with our copperthis can lead to the brake pad corroding free formulations. itself to the rotor. “Through competitive and trouble“Not all friction formulations behave shooting testing, we have found an increaswell under these conditions — specifically ing trend toward low-speed, low-frequency low-metallic or semi-metallic types — but brake noise.” we have even seen this create problems 2. The proliferation of electronic parkwith some ceramic friction formulations.” ing brakes. Most new vehicles are now 3. The presence of larger rotors. Many equipped with electronic parking brakes, new vehicles are equipped with larger rotors according to Peters. and painted “opposed piston” calipers, “Most use an electric motor operating where pistons apply pressure to the pads through a gear reduction system to apply from both sides of the rotor. the parking brake.” “Because of the performance nature Depending on the vehicle manufacturer, of these brakes or vehicles, we find they “the electronic parking brake may be applied come with a dirty, dusty and often noisy following every drive cycle, leaving the friction formulation,” says Peters. brake pad squeezed to the rotor under “Most of the dust visible on wheels and very high load. tires is actually due to rotor wear, between “In areas of the country where road the corrosive nature of the friction material salt is used during the winter months, itself and the debris.” MTD September 2021

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RNR Tire Express

Larry Sutton, president of RNR Tire Express, wants the company to have 500 franchise outlets up and running by the year 2027. Repeat customers made up more than 40% of RNR Tire Express franchisees’ total sales in 2020. “That’s an indication of satisfaction,” says Sutton. “And we want to keep that number high. We wouldn’t mind it being 60% or higher.”

On the fast track

RNR TIRE EXPRESS’ ‘LEASE-PURCHASE’ MODEL IS GAINING STEAM, SAYS COMPANY’S FOUNDER By

Mike Manges

ational franchise operation RNR Tire Express had a banner year in 2020 and is poised for an even better 2021. The Tampa. Fla.-based company has agreements in place to open nearly 50 more franchise outlets before the end of the year. The stores — which will be located in Arkansas, Arizona, Colorado, Indiana, Kentucky, New York and Ohio — will push the total number of RNR Tire Express locations to around 170. That’s on top of the dozen RNR Tire Express franchise stores that opened last year, despite the COVID-19 pandemic. Larry Sutton, the president of RNR Tire Express, wants the company to have 500 franchise outlets in place by the year 2027. It’s an ambitious target, but well within reach, says Sutton — especially as more cash-strapped tire buyers explore alternative forms of financing.

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‘EASY PAYMENT SYSTEM’

RNR Tire Express’ “lease-purchase model,” as Sutton calls it, is steadily gaining traction — in part, because it addresses an underserved customer niche, he says. “When we go to a new market that hasn’t experienced what we do, we can make a big impact because there are a lot of people out there who were probably buying used tires every four to five months and never really had a decent set of tires,” says Sutton. “In our program, you can buy a high-quality set of tires” through what he calls an “easy payment system. “We’ll start a deal with anybody for $20 down and that will take them to their next payment,” he explains. “There are millions of people in the U.S. who don’t have cash in their bank accounts or maybe their credit cards are maxed out. They have to figure out a way to stretch their dollars.” MTD September 2021

9/2/21 1:56 PM

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8/19/2021 11:18:56 AM

RNR Tire Express most of the U.S. has added a number of and what they are doing to differentiate is the trade war impact in the OTR busitires being sold to mining accounts. The themselves. Everyone has to be dedicated to ness. Depending on whether anything When enrolling customers, “westrong don’t ask for a lot ofservice. informa‘TIRES-FIRST’ MENTALITY mining business in the U.S. remains customer That means being dedicated changes or not, it could have a significant tion.the We take a few personal they work Most RNR Tire Express storeson have 70/30 (made ratio ofby) tireOTR salestire to and long-term potential forreferences, continued where to safety. And and they have to be dedicated impact the achoices where they live — and that’s about the end to of service it. We don’t wheel sales.people But that hasn’t always been the case. levels do – having the right manufacturers. growth is good. credit checks orWe anysee of the thatoverall stuff.”market our skewed toward ” says Sutton, who are trained and can do“Originally, the work. Th e model was Rasey: I think thatwheels, it’s probably going McDonnell: According to Sutton, customers don’t have to “go with a lowerwho founded RNR Tire Express 21 years ago. being relatively flat in 2020 compared to customer has to have faith in the dealer and to be a combination of several things. The pricedBut, tireofwith ouran model. They get the tire want. We’ll “When we opened, the of our company wasofRent-N-Roll 2019. course, election yearcan always histhey or her personnel. ratename of change and absorption technology customize payment around their budget. Our business has been much Custom Wheels & Performance Tires and were really focused throws somethe curve balls that are unexpected. more profesat dealerships will we continue to be a key “Once We’re they have products on their car, from that moment on, more onpeople wheels.who Theare timingfocus was good when first gotwith into Rasey: cautiously optimistic about sionalized. We have area because for most. That,wecoupled we’ll take care for of their for as long as they’re on the vehicle. the business, just starting to get bigger. actual demand 2020,tires particularly since trained at a higher level and more people wheels who were employee turnover and the recruitment “We’ll rotate and balance We’ll fixunderstand flats for free. “When we started, and we were doing 17s and 18s and then 20s it’s an election year. Based on for the free. politics howWe tires work with machinery. training of sales/service personnel to offer roadsideyear, assistance program. If they damage a tire, we’ll andto22s. We grew really well with thatteam model, but after several of anyaelection it’s not likely that any The fundamentals are going be the drivers. replace retiring members, is another put asweeping new tireinfrastructure on their car. programs will found we had painted ourselves into a corner.” new Kershaw: The biggest years, continuous trends/ on-going challenge. “The tire business has changed over the years, ” he says. “It Consumers saw Rent-N-Roll stores places to–buy custom be passed by Congress. developments in the OTR business for 2020 Both of those as challenges along with used to be, you went in and bought tires and then you paid for wheels — not tires, he says. However, the easing of the regulatory and beyond is the need for heavy carrying continuing to find ways to profitably difmounting and balancing, you paidcoupled for rotationcapacity — all these things “It was the and look of our stores their and the way we advertised. We environment over the past few years, (twothrough four-star rated) ferentiate sales, service and solution wereaadded on. weremulti-use in the wheel And wecompetition found that –people wanted with low unemployment rate, has provided higher speed-rated tires, and tires business. offerings from will dominate “We said,to ‘There’s a better quarry, way to do this.’ And when we andto buy trucks, tires from — not wheelactivities. stores. a nice boost construction, and builtthat’s for both loaders dump withtire stores their day-to-day came up with for ourthe customer caresegment. package.” articulated dumps and loaders “Survey mining activity earthmover movingafter moresurvey, people said, ‘Why would I go to RentThe economic shock of COVID-19 has weight helpedataccelerate ask people, ‘Have you everbybeen to a faster speed. N-Roll to buy tires?’ I would “Any one of these challenges, itself, acceptance the perspective, lease-purchase model, to Sutton. onebeing of oura priority stores?’ Andtakes theyserious wouldmanagement say, ‘No. I don’t wheels. MTD: Fromofyour what trendaccording Also, with infrastructure focus,need ” notes Rasey.’ Repeat customers made moreimpact than 40% ofinRNR Tireportion Expressof the U.S., “I would then do you need tires?’ They would say, or development will have theup biggest a large the need forask, ‘Well, “But when combined, it will require having franchisees’ sales last year. ‘Oh, you sell tires?’ on OTR tire dealers in 2020? grader, loader, articulated and scraper tires a solid game plan and quality managers to “That’s Every an indication of satisfaction. wantradial to keep other thing about the wheel business is we found out mostly designs will“The increase. keep their focus on what matters the most” Besancon: dealer is going to have to Andinwe that at number high. mind it being 60% or higher.”The most we unsettled could getissue a store upastothe a certain but we look how close theyWe arewouldn’t to their customers McDonnell: market level, evolves. ■ weren’t getting

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RNR Tire Express

“We were a wheel dealer that sold tires and felt we needed to be a tire dealer that sells wheels,” says Sutton. “And that’s when we became RNR Tire Express. We reinvented ourselves.” RNR Tire Express stores now take a “tires-first” approach.

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the growth you want to see at a mature store. It was because we weren’t getting that passenger tire business.” Some of Rent-N-Roll’s franchisees discovered the same thing. “One called me and said, ‘Hey, I have an idea I want to try. I think we ought to pay more attention to tires. When customers come into my store, I want tires to be the first thing they see and for wheels to be in a different area.’ “We started talking through it,” says Sutton. The franchisee revamped his showroom and started running ads that emphasized tires. “Sure enough, it became the fastest-growing store we ever had. I said, ‘We might be onto something here.’” Another franchisee adopted the “tires-first” approach with great success. Others soon followed. “We said, ‘Now we know what has to happen here.’ We were a wheel dealer that sold tires and felt we needed to be a tire dealer that sells wheels. And that’s when we became RNR Tire Express. We reinvented ourselves. “It just really took off. We started growing new stores faster and our more mature stores that were rebranded grew their revenues faster.” Sutton and RNR Tire Express franchisees discovered another thing — switching to the tires-over-wheels format did not hurt their wheel sales. “We do as many or more wheels as we always did,” he says. Sutton says most RNR Tire Express franchisees are open to testing new concepts at their stores. And he backs them up. “We’ll help them set up anything they want to do. Now, if a guy calls me and wants to try something we’ve already tried and didn’t have much success with, I’ll tell him up front, ‘Here are the things we had to deal with. You might experience the same thing.’ “When I first got into the franchise business, my attorney told me, ‘You’re not going to be a good franchiser. You never tell anybody no. “I didn’t know what he meant at the time, but I learned quickly MTD September 2021

9/2/21 1:57 PM

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RNR Tire Express New franchisees visit RNR Tire Express’ Tampa headquarters for in-person training. “They’ll come down here for a couple of weeks and will work with our people. Then we’ll follow up with that in the field. My training and store guys will travel to their locations to get shops set up and then when they leave, our sales trainers will come in. “And we’ll do that, too, for our franchisees who might be having a tough year and need some help.”

HOT MARKETS

“We just opened our first store in the state of New York in Queensbury, which is in that northern corridor by the Adirondacks.” The owners of the outlet are a couple that had operated a paper products distribution business, which they sold. “Everybody needs tires,” says Sutton. “Depending “They read an article about us and visited us. And now we’re on what you read, anywhere from 15% to 20% of the market is in-market at any given time. How many other talking with them about expanding into three more stores.” businesses can say that?” The lease-purchase model can be attractive to small, independent business people who are looking to make a career that there are some areas where you have to say, ‘Let me help you.’ change, says Sutton. “But I don’t assume that because we failed at something, “Everybody needs tires. Depending on what you read, someone else will. We give franchisees the freedom to try new anywhere from 15% to 20% of the market is in-market at any things because you never know when someone will come up with given time. How many other businesses can say that?” a different implementation that makes things work.” The light truck tire market is particularly hot at the moment, At the same time, RNR Tire Express franchisees also are he adds. expected to follow certain brand standards. This particularly “And that brings us additional business. A lot of people benefits new franchisees who don’t have tire or wheel industry want accessories when they buy bigger tires for Jeeps and experience, says Sutton. vehicles like that. “We have a very extensive training and support group. My “We’re rolling out ancillary products and services like lift trainers are ex-store managers and they know their business like kits in different markets and that’s working well. We’re telling the back of their hands.” franchisees, ‘This is something you ought to get ahold of because you’re going to miss some business if you don’t.’ “A guy who wants an off-road package is probably going to buy his tires” at the same place. All of the above should add up to FOUR RNR TIRE EXPRESS FRANCHISE OPERATIONS APPEAR ON THE 2021 MTD 100 another banner year for RNR Tire Express. The company achieved $211 million in sales during 2020, a 12% year-overRNR Tire Express President Larry Sutton isn’t just a franchiser. He’s also a franchisee. year increase. That continued an overall, Sutton owns a share of SPF Management Co. LLC’s group of RNR Tire Express locations, three-year revenue growth rate of 89%. which includes 20 stores— making SPF Management the 54th largest independent tire “We signed a deal this past year with a dealership in the U.S., according to the 2021 MTD 100, which was published this past July. very aggressive group that is well-heeled Here’s a look at other RNR Tire Express franchise owners who qualified for this year’s and well-financed and they want to open MTD 100 and where they fall on the list: 50 stores. They’ve already opened three successful stores right out of the gate. MTD 100 rank Owning company (location) Number of outlets “Our new store openings are off the 43 Rental Concepts LLC (Fayetteville, Ark.) 26 charts in how fast they have ramped up their customer base.” 58 Rims USA LLC (Spartanburg, S.C.) 19 Sutton himself owns a percentage 77 Gulf Coast L&P Inc. (Moss Point, Miss.) 14 of one RNR franchise, which operates under the SPF Management Co. LLC All four moved up in MTD 100 rankings, 2020 versus 2021. SPF climbed from the 63rd corporate umbrella. (Based in Tampa, spot to the 54th spot. Rental Concepts moved from 47 to 43. Rims USA ascended from the franchise has 20 locations.) 59 to 58. And Gulf Coast L&P jumped up three spots — from 80 to 77. “There’s a few more I wouldn’t mind owning part of, but I try to stay in my lane when I can,” he says with a laugh.

Moving on up — and moving quickly

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9/7/21 12:46 PM

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8/19/2021 11:40:49 AM

Focus on Industry

Continental jumps into the all-weather segment SELLING 3-PEAK MOUNTAIN SNOWFLAKE STATUS IS KEY By

Mike Manges

ontinental Tire the Americas LLC sees a bright future for the all-weather segment. The company introduced its first all-weather tire — a General brand product — earlier this year. The General AltiMAX365AW is available in 52 sizes, ranging from 15 inches to 20 inches in rim diameter, and has earned 3-Peak Mountain Snowflake certification. This enables the tire to deliver what Continental officials call “best-in-class, overall performance and optimal traction in deep snow, compared to typical all-season tires.” Continental had been eyeing the allweather segment for several years prior to launching the General AltiMAX365AW, according to Joe Maher, product manager, passenger and winter tires. While watching competitors roll out allweather products, the company monitored feedback from its dealers. “What we noticed is that in certain areas of the country, there is demand for a tire that is 3-Peak Mountain Snowflake-certified. And our dealers in those areas said they wanted an all-weather product in the value segment. “We’re not a company that just throws stuff against the wall to see what sticks,” says Maher. “We work with our dealers. We involve them in what we do. They’re on the front lines. And we sort of let them tell us when the market gets to a critical mass.” Once Continental decided to invest in all-weather, “we put together a project to understand what technologies were needed to build a tire that (satisfied) 3-Peak Mountain Snowflake (requirements) and also delivered other aspects of performance that consumers would be interested in.” Maher notes that Continental’s dedicated winter tires “passed the 3-Peak Mountain Snowflake test with flying colors. There was a lot of investigation into what it would take to pass the same test in a robust manner” when developing a tire for the all-weather segment.

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The 3-Peak Mountain Snowflake designation “allows dealers to make a good, qualified recommendation to the consumer,” says Joe Maher, product manager, passenger and winter tires, Continental Tire the Americas LLC.

THE BIG DIFFERENCE

It’s difficult to pinpoint the precise size of the all-weather segment, says Maher, “because different people have different views. But an all-weather tire doesn’t give the consumer extra value if that customer lives in a place where it doesn’t snow.” However, both consumers and tire dealers in areas that see snow are warming up to the all-weather concept as distinctions between all-weather tires, all-season tires and dedicated winter tires become more defined and understood, he reports. “We did some surveys with our dealers several years ago when all-weather tires first came out and it was really surprising. “One of the questions I asked was, ‘Do you think the performance of an all-weather tire is similar to the performance of a winter tire?’ And our dealers said, ‘Yes.’ They thought it would be like a winter tire” due to the 3-Peak Mountain Snowflake designation. Fast forward to last year, when Maher conducted some training sessions on winter tires. “I asked a similar question and more than half said that all-weather tires are clearly not winter tires, but there is a market for a tire that is good in the winter and has enhanced snow traction versus a standard all-season tire.” 3-Peak Mountain Snowflake certification is the key differentiator between all-season tires and all-weather tires, says Maher. “There is no realistic requirement to be all-season. You can have an all-season tire

that would virtually be a summer tire and you can have an all-season tire that would be closer to a winter tire. “The reason I think all-weather has benefits is that it really sets a minimum standard for snow capability.” The 3-Peak Mountain Snowflake designation also “makes it easy for the dealer to point to a tire and say, ‘This is better in winter conditions than a tire without 3-Peak Mountain Snowflake because it has passed the minimum (winter performance) standard.’ “The designation allows dealers to make a good, qualified recommendation to the consumer.”

WHY GENERAL?

When asked why Continental chose to enter the all-weather segment with a General brand tire instead of a product bearing its flagship name, Maher pointed to General’s positioning. “The General brand is a strong tier-two brand,” he says. “With General, we’ve taken the strategy of building a really good tire with really strong performance and we want customers to come back and buy that tire again. “We’re on the upper end of the performance level of tier-two and offer a really good proposition for both the dealer and consumers. I think that’s where we’ve found a solid niche” for General. “Our new all-weather tire fits right into that proposition.” MTD September 2021

9/2/21 1:57 PM

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8/19/2021 10:57:54 AM

Focus on Industry

ATD expands Hercules Terra Trac line DEALERS ALSO TO BENEFIT FROM BIG MARKETING INVESTMENT By

Mike Manges

merican Tire Distributors Inc. (ATD) is making big investments in both products and digital marketing for its Hercules brand. Last month, ATD expanded the popular Hercules Terra Trac AT line to include two new products: the Terra Trac AT X-Journey, which addresses the rapidly growing CUV segment, and the Terra Trac X-Venture, which targets SUVs and light trucks. The tires — whose range will ultimately include 57 sizes for more than 80% coverage of the all-terrain tire segment — are made in the United States and are now available. “The Terra Trac AT II had been our most popular tire and has been extremely successful,” says Josh Simpson, senior vice president, proprietary brands, ATD. “But we see an opportunity to expand our brand by re-evaluating the ever-changing needs of the consumer based on the vehicles they drive and the lives they lead.” The Terra Trac line extension is intended “to help our dealers capture new sales — particularly in light truck. We positioned ourselves 18 to 24 months ago to capture sales in the light truck tire category. “We continue to see our light truck and SUV (presence) grow. With people driving more SUVs and light trucks, we expect growth to continue well into 2022.”

MAXIMUM EXPOSURE

Using digital marketing to help drive consumers to Hercules dealers will be another high-priority effort, says Simpson. “We’re trying to look at where we can get the most exposure and get Hercules’ brand awareness out there.” Hercules’ newest sponsorship “is with MotorTrend TV,” which Simpson says will “bring Hercules tires to hundreds of thousands of screens that are viewed by consumers, truck enthusiasts and automotive trade professionals, so we’re really excited about that.” The sponsorship kicked off in June. “The second new initiative we have is

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Above: The recently announced Hercules Terra Trac line extension is intended “to help our dealers capture new sales — particularly in light truck,” says Josh Simpson, senior vice president, proprietary brands, American Tire Distributors Inc. “We positioned ourselves 18 to 24 months ago to capture sales in the light truck tire category,” which is expanding. Right: The new Hercules Terra Trac AT X-Journey addresses the rapidly growing CUV segment, while the new Hercules Terra Trac AT X-Venture targets SUVs and light trucks. Both tires are now available.

Connected TV. We’ll be doing some advertising and the cool thing about that is not only do we get to make connections with viewers to get our image and message out there, it also allows us to track what consumers do after they see a Hercules tire ad. “We’ve seen an increase in customers going to the dealer locator on our website and when they go to that, they learn about specific Hercules dealers and where to buy products and that way we can track traffic (into) stores. That tracking mechanism is new this year.” ATD also is supplying Hercules tires to two popular TV shows: Truck U and Two Guys Garage.

“We’re vetting our tires into these shows, on vehicle builds and (are providing) tire tech tips,” says Simpson. “Hosts discuss features and benefits to drive home the message that Hercules offers selection, value and strength.” Sports marketing will continue to play a role in Hercules’ marketing efforts. The brand recently partnered with the National Hockey League’s Winnipeg Jets franchise. “I would say that from an association with a professional sporting team, this is the biggest thing we’ve done. And we’ve gotten really good feedback from our dealers in Canada about that. A lot of games aired in the U.S., too. So it has been a real positive.” MTD September 2021

9/7/21 12:50 PM

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Focus on Industry

Bridgestone adds two Potenza tires UHP PRODUCTS CONNECT BRAND TO PREMIER PERFORMANCE By

Joy Kopcha

ew mixing technology has helped Bridgestone Americas Inc. update its tread compound with more silica, resulting in two new ultra-high performance (UHP) tires: the Potenza Sport and the Potenza RE980AS+. Bridgestone sees the Potenza Sport as its next flagship summer tire. Developed in Europe, the tire is designed to perform in both wet and dry conditions. Internal tests show a 6% improvement in dry braking compared to the Bridgestone Potenza S-04 Pole Position tire. The Potenza Sport comes in 65 sizes, covering 81% of the sports cars and sedans on the road. The Potenza RE980AS+ replaces the RE980AS and adds winter capabilities. Dale Harrigle, Bridgestone’s chief engineer for performance and luxury tires in the replacement channel, says, “We know that the Potenza RE980AS was a favorite of the enthusiasts, but one thing we like to do at Bridgestone is pay attention to our customer feedback. Customers told us they wanted a bit more winter performance out of this tire.” The Potenza RE980AS+ comes in 53 sizes, covering 85% of the sports cars and sedans on the road in the U.S. and Canada.

hybrid crown reinforcement maximizes stability at high speeds. For driving comfort, tuned tread sequencing minimizes the hum from the tire, offering a quiet ride. The Potenza Sport already has been customized for original equipment fitments on the Maserati MC20 and Lamborghini Huracán STO.

WHY PURSUE UHP?

The Potenza Sport is Bridgestone’s newest ultra-high performance tire and it comes in 65 sizes.

POTENZA SPORT

Bridgestone refers to the Potenza Sport’s rubber as containing an “ultra-high silica compound” and says it provides grip and handling in both wet and dry conditions. Justin Gehres, director of advanced product engineering, says the new compound results in improved wet performance, as well as improved tire wear. The design and geometry of the product’s tread pattern helps it maintain contact pressure, while circumferential grooves evacuate water for improved wet performance. Three-dimensional sipe technology maximizes pattern stiffness to balance traction and wear performance and a new

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Its asymmetric design and 3D sipes help the tire dig into snow for improved traction. The tire is backed by a 50,000-mile limited mileage warranty. Mirella Cielo, president of Bridgestone’s consumer replacement tire business, says, “In reimagining our Potenza lineup, we set out to create two new ultimate performance contenders that would help enthusiast drivers get the most out of their cars in a wide variety of weather and road conditions.”

The Potenza RE980AS+ tire adds more winter capabilities to the design of its predecessor.

POTENZA RE980AS+

Improvements to the Potenza RE980AS+ allow for year-round, ultra-high performance, according to Bridgestone officials. The tire’s new tread compound enhances snow handling and improves wear, which Bridgestone says provides “a more sustainable ride.”

Tiremakers have long brought racing tire technology into their consumer products. Three Bridgestone executives offered their takes on why the company is pursuing the UHP tire market. Merritt Gilbert is director of consumer marketing operations for Bridgestone. She says that it all “boils down to enhancing a segment known for its passion. “The ultra-high performance category is all about connection with a brand, a product (and) with the way you feel when you’re on the road.” Harrigle, an engineer who spent nearly 20 years working on Bridgestone’s race products, says it’s fun. “We have a lot of engineers, including myself, who are passionate about this category. I love working on these tires. The innovative technology we developed for tires that go over 200 miles per hour is used to develop these tires, too. “It’s exciting to find ways to utilize this technology to design and test performance tires our customers can purchase.” Jeff Cook, Bridgestone’s executive director of strategy and production portfolio planning, says the company’s focus on UHP pairs Bridgestone’s motorsports history and experience with its work with “premium OE partners.” In the end, the goal is to “make the name ‘Bridgestone’ synonymous with ‘high performance.’” MTD September 2021

9/2/21 1:58 PM

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Focus on Industry Daimler Trucks North America recently opened what it calls a “first-of-its-kind, heavy-duty electric truck charging site” near its home base in Portland, Ore.

Available for order MAJOR TRUCK OEM INVESTS IN ELECTRIC FUTURE

Leading the charge CLASS 6 AND CLASS 7 TRUCKS ARE RIPE FOR ELECTRIFICATION, SAYS ACT RESEARCH By

Mike Manges

ommercial electric vehicles will make up nearly 40% of the Class 4 through Class 8 truck population in the United States and Canada within the next 15 years, according to ACT Research. The company also predicts that by 2040, nearly 320,000 out of the projected 750,000 total commercial vehicles operating in North America will be electric. ACT Research Analyst Jim Meil discusses the factors that are driving this expansion, which types of trucks make a good fit for electrification, why electric trucks appeal to certain fleets and more. MTD: ACT indicates that commercial electric vehicles will reach nearly 40% share of the Class 4 through Class 8 truck market by 2035. What is driving this growth? Meil: The major factor driving the share gain is the rapidly falling costs of batteries. We project a decline of about one-third in the next 10 years, which will enhance the business case for EVs. In addition, policy moves that will tilt the playing field to the advantage of electrification — emissions requirements nationally and in states and provinces — will push some of that share gain.

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MTD: Which class of trucks is seeing the biggest growth in electric models? Meil: We believe Class 6 through Class 7 will turn out to lead in both share gain and volume, with upwards of 70% share by 2035 to 2040, translating into close to 130,000 Class 6 through Class 7 vehicles at the far reach of our 20-year horizon. Many of the aspects that pave the way for electrification fit well with Class 6 through Class 7 applications — just to name two: pick-up and delivery in urban areas (and) school buses. MTD: Why are fleets interested in electric trucks? What’s the value proposition? Meil: First and foremost, fuel savings as efficient electric engines will beat their internal combustion engine counterparts in this dimension, in many cases. Second, the simpler drivetrain of an electric vehicle will result in service, maintenance and uptime benefits compared to the more complicated internal combustion engine counterpart. MTD: What are the barriers to more widespread electric truck acceptance by fleets and how will those obstacles diminish over the next several years? Meil: Right now, part of the issue is product

Daimler Trucks North America (DTNA), one of North America’s largest truck manufacturers, is making a massive investment in the development of electric trucks. DTNA’s first all-electric products — the eCascadia and the Freightliner eM2 — are now available for order. Production on both will start next year. “We currently have 38 (electric) trucks in early customer trials,” says Alex Voets, product sales and marketing manager for DTNA’s Freightliner brand. “One, the Freightliner Electric Innovation Fleet, includes a 30-vehicle fleet dedicated to our two customers, NFI Industries and Penske.” He adds that Penske “has 10 mediumduty eM2s and both companies have 10 heavy-duty eCascadias each. In addition, we have the Freightliner Customer Experience (CX) Fleet, which includes six eCascadias and two eM2s.” The eCascadia has a range of 250 miles per charge. Eighty-percent of the truck’s battery can be recharged within 90 minutes. “Right now, our targeted applications are those that have a return-to-base operation,” he says. “Drayage, local delivery and pick-up and regional delivery are all great applications that see trucks domiciled at a central location, where they can be recharged overnight.” availability. Getting early production models out of the factory and into dealerships has lagged personal vehicles. The commercial vehicle marketplace is driven more by P&L and return-on-investment financial factors than the personal (vehicle) market, where consumer choice, taste, status and trendiness come into play. Also, commercial vehicle operators tend not to be on the leading edge. They don’t like to be first movers. MTD September 2021

9/2/21 1:58 PM

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TEN Insights

How to achieve success through servant leadership IT ALL STARTS AT THE TOP – WITH YOU By

Jeff Morgan

A key commonality you will find in the success of any organization is the leadership behind it. Leaders both inspire and guide. And they take both their businesses and employees to higher levels of performance. Here, Alpio Barbara, MTD’s Tire Dealer of the Year Award winner in 2016, rallies the troops at his dealership, Redwood General Tire Service, in Redwood, Calif.

ompetition is everywhere in our industry. As such, the ability to attract and retain talent is even more of a challenge, particularly with a limited talent pool. For some, this is a daily struggle. Yet there are a few out there who seem to be doing very well. While there certainly isn’t any magic recipe here, I believe that a key commonality you will find in the success of any organization is the leadership behind it. In the movie “Remember the Titans,” a player was asked by the team captain why he had such a poor attitude. The player responded, “Attitude reflects leadership.” This is absolutely true in any business! There is often confusion between being a manager and being a leader. Let me explain. A manager effectively maintains the operations of a business. I have often compared this to being the captain of a ship. That person’s job is to take that ship, its cargo, crew and passengers from Port A to Port B efficiently, effectively and on time, keeping it off the rocks in the process. Conversely, a leader takes his or her business and people to higher levels of performance. Using the ship captain analogy, this person recognizes that “Port C” is much more beneficial for the sale of goods and the betterment of passengers. He or she then

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leads, coaches and motivates the crew to take the ship where they thought wasn’t possible before. It is very possible to be a very good manager and a very poor leader. I have seen this a lot over the years. While occurring less often, it is also possible to be a very good leader and a very poor manager. The secret is that the best do both! Please understand, I am not suggesting that poor leadership skills are an indictment of those people. Many have worked extremely hard to get where they are and want to be better leaders, but they simply do not know how. While they may have invested a lot of time in learning to run and manage a business, often the same amount of time has not been invested in learning how to effectively lead people. Now, if you tried to read all the books on different leadership philosophies and techniques, it is safe to say you may not see the light of day for a long, long time! The ideas found in these books may work in certain instances and may be very valid approaches. But I am a firm believer in the power of servant leadership. Many books have been written on the topic of servant leadership, but Robert Greenleaf is often considered one of the founding fathers of the concept, with his 1977 book titled — not surprisingly — “Servant Leadership.” In it, he shares that leaders should MTD September 2021

9/8/21 10:54 AM

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TEN Insights place the needs of their followers before their own by helping when employees recognize that you are invested in their growth, them mature and develop. they are more likely to stay. You do have an obligation to pay In a simple sense, it is letting go of just being the person in them what they are worth, of course. And their new skill sets charge and being recognized as a true resource whom employees will benefit your business in ways that will justify that expense. can count on. Too often, we think we need to be authoritarians. Loyalty is a two-way street. If you want employees to be loyal to you and your business, you must also display loyalty to them. We think this is the only way to ensure things get done. But we can still hold people accountable, while we also invest in their Show them what you are willing to do for them. Take genuine success. Ultimately, we want our people to be successful because interest in their growth. Help them achieve their goals. As their that leads to our own success, right? So why not help them do so? success grows, so does the success of your business. There is an old An easy step to becoming a servant leader is to do a better saying that when you make customers feel special, they become job of listening to your people. Do you really hear what they are special customers. The same can be said of your employees. Let saying? If you let something go in one ear and out the other, your them know how special they are to you by investing in them and people will soon recognize this and will stop trying to talk to you they will become special to your business. about their concerns. This is not healthy for your business nor One last piece of servant leadership that I want to share with for the morale of the people in it. you is to be vulnerable. Newsflash — you’re not perfect! No one If someone takes the time to bring something to your attenis! You will make mistakes. Are you willing to own up to them tion, even if you think it is small or pointless, it is important when you do? I see way too many people make excuses or blame to them in some way. Take the time to hear them out. Ask others for their own mistakes. They seem to think that admitting questions to clarify and confirm your understanding. to mistakes is a sign of weakness. I will tell you that it’s a sign of strength. If it is something that you can or should act upon, do it. If it Do not be afraid to tell an employee “sorry” if you make a is something that you cannot or should not act upon, first thank them for sharing their thoughts with you! Then, explain why you mistake that affects them or your entire team. These things are will not act upon it at that time. This demonstrates that you did going to happen. When you demonstrate that you accept your mistakes, others will do the same. If you have a shop full of people hear them and that you value their input. pointing fingers at each other when problems occur, you need This approach will encourage people to share their ideas and thoughts with you. Before you know it, to look in the mirror as that behavior likely you will uncover productivity barriers and starts with you. other issues that you may have not been Being vulnerable also involves admitting aware of before. You may also uncover new that you do not know everything. I am a firm If you do not know the processes or procedures that will improve believer that there are great ideas that reside productivity, as well. within every business. These ideas often best way to approach a exist inside the minds of employees, but Additionally, when listening, do so with situation or process, ask empathy. This means that you understand are never called out. Do not be afraid to ask the emotion behind what your employees questions of your employees. If you do not your people. are trying to tell you. This will be particularly know the best way to approach a situation important when an employee comes to you or process, ask your people. Not only are they likely to have some great answers, but with a personal request. For example, if an employee comes to you asking for a specific they will feel empowered. They will start to provide ideas more day off in order to attend a special family event, understand freely. This empowerment also makes them feel more engaged what that means to the employee. In this case, you should look in the business, making them less likely to leave. at every way possible to accommodate the request rather than Becoming a servant leader does not happen overnight. It quickly dismissing it. This does not mean that you will be able requires work. That work starts by understanding what your gaps to accommodate every time off request. It does mean that you are. Where can you improve? sincerely look for possible ways that you could. If you are able Start by looking in the mirror. Be honest with yourself and to accommodate from time to time, employees will be more recognize where you need to adjust. Commit to making the understanding when you cannot. changes in your leadership style that will rally your employees around you — as opposed to fearing you, avoiding you or simply Another key to being a servant leader is a willingness to help ignoring you. employees grow. Again, this starts with listening. What does the employee want or need to learn? Where do they want to go in Work on it every day, making little adjustments as needed. their career? How can you help them achieve these things? Before you know it, you will be recognized as the servant leader I have actually heard owners and managers state that they did that people want to work with and for. And that will drive your not want to invest in training an employee because they were business to new heights. ■ concerned that this person would leave and take those new skills to work for the competition. Tire industry veteran Jeff Morgan is the executive director of TEN (Training Trust me, it is much worse to keep someone who is untrained and Education Network). He can be reached at jeff.morgan@20dsp.com than it is to risk losing someone whom you developed. Besides, or (651) 846-9871. For more information, see www.mtdten.com

06_MTD_Columns-TPMS.indd 86

MTD September 2021

9/8/21 10:55 AM

87_K&M TIRE CONTEST_0921.indd 87

8/19/2021 11:13:25 AM

Business Insight

Your dealership’s central nervous system ARE YOU GIVING YOUR SERVICE MANAGERS THE TOOLS AND SUPPORT THEY NEED? By

Dennis McCarron

t many successful tire dealerships throughout North America, the day starts near the crack of dawn. The owner or store manager opens the shop about an hour or so before the front doors are unlocked. Getting the store prepared is an important part of the day’s success — hot coffee brewing, the drawer counted, overnight vehicles figured out, night drop vehicles keyed into the point-of-sale system and some quiet time to reflect on the day ahead are all done before the first customer arrives or calls. Maybe you can even get a review of the previous day’s tickets to see how well you executed your processes. Once your team arrives, doors are unlocked and customers start streaming in, the service manager becomes the most critical aspect of a well-run store. This job is sometimes called other names — “shop foreman” and occasionally, “shop manager.” Sometimes it’s not one person’s job, but a job shared across several employees. Either way, the function of managing the workflow is the brain of the operations once the doors open. A service manager’s job is complex and arguably the hardest job in a store. There’s a human resources component — keeping techs happy and loaded with enough work, but not too much to where the attitude goes from tension to stress. There’s a logistical component in which a service manager must apply institutional knowledge about how long a job will take, plus who has the proper skills and tools to do the job correctly and on time. There also is a predictive aspect, where a skilled service manager must apply intuition and make educated guesses on additional work needed for each vehicle and then bake that into the workload equation.

06_MTD_Columns-TPMS.indd 88

It’s a ridiculous balancing job of keeping all the proverbial plates spinning for about eight hours a day, every day. It’s not easy. Each day brings a whole new set of decision-based criteria — different from the last day, but similar enough to be a guide. Sprinkle in some back order issues, late-arriving parts or a broken bolt and the whole day must be re-evaluated. The service manager also must function as the key communicator between sales and service. In a well-run shop, the service manager is constantly communicating with technicians on job status, relaying that information to sales so they can keep a customer abreast of the time their vehicle will be ready.

A service manager’s job is complex and arguably the hardest job in a store. Often when consulting at a tire dealership, I will stand in the service area and watch the technicians working on vehicles, but I’m listening for the service manager, who should rarely be silent. A quiet shop makes me nervous. The service manager also is usually the main estimator of work. The job requires him to follow gross profit margins correctly and apply consistent book time of labor to each job at a price the consumer will view as fair. This role is often where a jam in time management occurs. Because customers don’t come into the shop uniformly every 15 minutes, there are times when a shop is overrun with customer requests. Vehicles get inspected and returned for estimates. If the pile of tickets starts to grow unruly,

then production slows and people start standing around. A good service manager must know when to delegate easier estimates to other employees. And a good service manager never skimps on an estimate when they are “busy.” Not telling a customer about a condition you have found is just as unethical as recommending work they don’t need. It’s not very scientific, but when a good service manager is doing his job well, there’s a rhythm in the shop that is unmistakable. The service manager is pushing work forward in a controlled way, while checking completed work for quality. Oh, and let’s not forget the after-hours responsibilities, which can include vendor returns, stocking parts, taking inventory of service items, monitoring consumables and coordinating old fluid removal and new fluid replenishments. I write about the service manager position to illustrate how vital this position is to the success of a dealership. And promoting the best salesperson to this job is often a terrible idea. The best salesperson should be spending the majority of their time selling. A service manager is all about organization. As we work our way through a very hectic 2021 — arguably more difficult than 2020, from an employee perspective — make sure you have the right people on the right bus and in the right seats. Pay your key employees well, but hold them to high standards. It’s not fair to your other employees if their work is held up by an ineffective service manager. ■ Dennis McCarron is a partner at Cardinal Brokers, one of the leading brokers in the tire and automotive industry (www.cardinalbrokers.com). To contact McCarron, email him at dennis@cardinalbrokers.com.

MTD September 2021

9/2/21 2:09 PM

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Mergers and Acquisitions

Working capital in an M&A transaction YOU HAVE TO LEAVE A LITTLE GAS IN THE TANK By

Michael McGregor

sometimes tell new clients that there are so many things that go on in an M&A transaction that I can’t possibly alert them to all of them up front. I’m hoping that over time in this column, I can hit most of them for you. One of these subjects is how working capital is handled in an M&A transaction. So much of the focus is on purchase price that little attention is paid by tire dealers to working capital — until it matters to them. Working capital is current assets minus current liabilities. Current assets include cash, accounts receivable (A/R) and inventory. Current liabilities are accounts payable (A/P) and other things, like accrued wages. In a healthy tire dealership, current assets exceed current liabilities to get at a positive net working capital number. Most tire-related M&A deals are on a “cash-free, debt-free basis.” You get to keep the cash you have in the bank, but you are responsible for paying off any long-term debt. So in many cases, the formula for calculating working capital is: (A/R + Inventory) – (A/P + Accrued Expenses) = Net Working Capital If you are a healthy and profitable tire dealer, your working capital is part of what a buyer is buying. Think of your business as if it were a used car. Like oil in the engine, your working capital is the lubricant that allows your cash-producing machine to run. Without this lubricant, the engine would seize. And without gas in the tank, your car can’t go anywhere. Would you knowingly buy a used car with no oil or gas in it? I don’t think so. A healthy tire business is worth more than the sum of its measurable assets, like A/R, inventory and equipment, plus the hard-to-measure assets like your reputation, goodwill and customer base. It’s usually worth a multiple of your annual earnings, minus long-term debt. Some tire dealers think they get to add their inventory value to the market multiple. You can’t do that. But you can keep some “excess” working capital. In multi-store transactions, you’ll see in the letter of intent to purchase (LOI) the words mentioning that acquired assets will include a “normalized

Accounts Receivables Inventory Total Current Assets Accounts Payable Business Credit Cards Total Current Liabilities Net Working Capital

06_MTD_Columns-TPMS.indd 90

level of working capital.” The buyer and seller have to both agree on what this target is. The way we do this is by analyzing the past 12 to 24 months of working capital changes and seeing what it looks like in relation to sales and seasonality. See the chart at the bottom of this page for a summarized example. Now in this example, I’m seeing an owner doing the opposite of what I ask them to do. When you sign an LOI, you are supposed to keep running the business in the same manner as you were doing before. But clearly the owner of this business is selling down his inventory and putting more cash in his pocket before the sale. Any savvy buyer would pick the 12-month average working capital here of $231,868 as the “target working capital” they expect to see at closing, instead of the $169,809 six-month average or the $94,769 average working capital in the fourth quarter. Say this deal closes on March 31, 2021. A few days prior to the closing date, the seller provides the buyer with a good-faith estimate of what he thinks the working capital will be at closing. If the estimated working capital exceeds the target working capital, the closing payment is increased by the difference. But if the estimated working capital is less than the target working capital, the closing payment is reduced by the difference. This increase or reduction of purchase price is called the “estimated working capital adjustment.” Ninety days after the closing date — after all the bills are in and inventory has been finalized — the buyer calculates the “actual closing working capital” on that March 31 closing date and sends this to the seller for approval. If the closing working capital is greater than the estimated working capital, the buyer pays that difference to the seller. If the closing working capital is less than the estimated working capital, the seller either pays this or more often than not, there is an escrow, indemnity or holdback account that the buyer can deduct the deficiency from. ■ Michael McGregor is a partner at Focus Investment Banking LLC (focusbankers.com/ automotive/tire-and-service). He advises and assists multi-location tire dealers on mergers and acquisitions. For more information, contact him at michael.mcgregor@focusbankers.com.

Q1 2020

Q2 2020

Q3 2020

Q4 2020

6 Month Avg.

12 Month Avg.

03/31/21

$348,080

$308,995

$249,445

$290,074

$269,760

$299,148

$282,000

651,226

608,845

564,289

539,217

551,753

590,894

535,763

999,306

917,839

813,734

829,290

821,512

890,042

817,763

639,454

530,096

491,239

631,703

561,471

573,123

615,000

86,774

72,967

77,648

102,818

90,233

85,052

105,000

726,227

603,062

568,887

734,521

651,704

658,174

720,000

$273,078

$314,777

$244,848

$94,769

$169,809

$231,868

$97,763

MTD September 2021

9/7/21 12:54 PM

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91_FALKEN TIRE_0921.indd 91

TPMS

Nissan Murano 2004-21

OTE: When a spare tire is mounted or when a wheel, tire pressure sensor or low tire pressure warning control unit is replaced, the tire pressure sensor must be registered. See RESET PROCEDURES.

TIRE PRESSURE MONITOR SYSTEM

NOTE: This system may also be referred to as the low tire pressure warning system. The instrument cluster may also be referred to as a combination meter. While driving at speeds above 20 mph (32 km/h), the low tire pressure warning system receives the signal transmitted from the transmitter installed in each wheel and gives alarms when the tire pressure becomes low. A sensor transmitter integrated with a valve — installed on each wheel — transmits a detected air pressure signal in the form of a radio wave. An antenna located in the passenger-side front pillar receives the air pressure signal transmitted by the transmitter in each wheel. The low tire pressure warning control unit reads the air pressure signal received by the antenna and controls the warning light and the buzzer operations. It also has a judgement function to detect a system malfunction. CAUTION: The tire pressure monitoring system (TPMS) may not function properly when the wheels are equipped with tire chains. Do not place metalized film or any metal parts (antenna, etc.) on the windows. This may cause poor reception of signals from the tire pressure sensors.

TIRE PRESSURE MONITOR WARNING INDICATORS

NOTE: Tire pressure rises and falls depending on heat caused by the vehicle’s operation and the outside temperature. If the outside temperature is low, the air inside the tire may cool, causing a lower tire inflation pressure. This may cause the low tire pressure warning light to illuminate. When the low tire pressure warning system detects low inflation pressure or another unusual symptom, the warning light in the instrument cluster comes on. If the system detects that air pressure is less than

06_MTD_Columns-TPMS.indd 92

27 psi (190 kPa), it will also sound a buzzer for 10 seconds and a “FLAT TIRE” or “CHECK TIRE PRESSURE” warning message will appear in the instrument cluster display, if equipped. The instrument cluster display unit displays the air pressure of each tire, except the spare tire. After the ignition switch is turned on, the pressure values will not be displayed until the data Figure 1: Identifying Transmitter Activation Tool. With the of each wheel is received. Transmitter Activation Tool (J-45295) pushed against the NOTE: Pressure left front tire air valve, press the button for five seconds. indication in “** psi” on the screen indicates that the pressure is being measured. After TIRE PRESSURE SENSOR REGISTRATION a few driving trips, the pressure for all four tires will be displayed. The order of tire NOTE: If the tire pressure sensor was pressure displayed does not correspond replaced, the new sensor will be in an “asleep” mode. To wake up the sensor, see with the actual order of tire position. When the tire pressure warning light Transmitter Wake-Up Operation. comes on, immediately check the air presNOTE: To register a new tire pressure sure of all tires and adjust to the specified sensor, a Nissan Signal Tech II scan tool pressure. Make sure the warning light or CONSULT scan tool can be used. A goes off. The warning light does not autoTransmitter Activation Tool (J-45295) matically turn off when the tire pressure is used in the wake-up procedures and is adjusted. After the tire is inflated to the can aid in the registration procedure, if recommended pressure, the vehicle must using the CONSULT tool system. Sensor be driven at speeds above 20 mph (32 registration and wake-up methods in this km/h) to activate the TPMS and turn off article refer to the CONSULT type scan tool procedures. the low tire pressure warning light. If the warning light stays on or flashes, there is a NOTE: If a CONSULT-II is used without malfunction in the TPMS. See appropriate also using the CONSULT-II CONVERTER, manufacturer service information. a malfunction might be detected during self-diagnosis, depending on which control TPMS RESET PROCEDURES unit carries out communication. NOTE: When a spare tire is mounted NOTE: The Signal Tech II Tool or when a wheel, tire pressure sensor or (J-50190) can be used to perform the low tire pressure warning control unit is following functions: replaced, the tire pressure sensor must • Activate TPMS transmitters; be registered. TPMS warning indicators do not auto• Display TPMS transmitter IDs; matically turn off when tire pressures • Display tire pressure reported by the are adjusted. After tires are inflated to TPMS transmitter; the recommended pressure, the vehicle • Read TPMS diagnostic trouble codes, must be driven above 20 mph (32 km/h). and; Ensure that warning indicators go out. • Register TPMS transmitter IDs. MTD September 2021

9/2/21 2:09 PM

TPMS

AUTOMOTIVE INTELLIGENCE

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Figure 2: Waking Up Transmitter With Transmitter Activation Tool. As each sensor ID is activated, the TPMS warning light flashes in the pattern shown in Figure 2 and the scan tool indicator light changes from red to green.

ID Registration With Transmitter Activation Tool 1. With the ignition switch in the OFF position, connect the CONSULT scan tool to the data link connector (DLC). Turn the ignition switch to the ON position. 2. Select “START (NISSAN BASED VHCL)”. 3. Select “AIR PRESSURE MONITOR” on the “SELECT WORK ITEM” screen. 4. Select “WORK SUPPORT” on the “SELECT DIAG MODE” screen and select “ID REGIST;” 5. With the Transmitter Activation Tool (J-45295) pushed against the front left transmitter tire air valve, press the button for five seconds. (See Figure 1.) Be sure to register the IDs in the specified order or the self-diagnostic results display will not function properly; 6. Register the IDs in the order specified in the tire registration order table. When ID registration of each wheel has been completed, a buzzer sounds as indicated in the table, the hazard warning lights or turn signal indicators flash twice and the indicator light on the Activation Tool goes from red to green. Tire registration order is front left once; front right two times; rear right three times and rear left four times 7. After completing all of the ID registrations, press “END” to complete the procedure. w w w . M o d e r n T i r e D e a l e r. c o m

06_MTD_Columns-TPMS.indd 93

ID Registration Without Transmitter Activation Tool 1. With the ignition switch in the OFF position, connect the CONSULT scan tool to the DLC. Turn the ignition switch to the ON position; 2. Select “START (NISSAN BASED VHCL);” 3. Select “AIR PRESSURE MONITOR” on the “SELECT WORK ITEM” screen; 4. Select “WORK SUPPORT” on t he “SE L E C T DIAG MODE” screen, and select “ID REGIST.” On 2006-2010 models, if ID registration fails, a buzzer sounds; 5. Adjust the tire pressure to the values specified in the appropriate sensor ID registration tire pressure specifications table and drive the vehicle at 20 mph (32 km/h) or more for a few minutes. Sensor ID registration tire pressure specifications: front left (36 psi); front right (33 psi); rear right (30 psi); and rear left (27 psi). Sensor ID Registration Tire Pressure Specifications (2006-2021): front left (34 psi); front right (31 psi); rear right (29 psi); and rear left (26 psi) 6. After completing all ID registrations, press “END” to complete the procedure; 7. Inflate all tires to specification. Transmitter Wake-Up Operation NOTE: New replacement transmitters are

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9/2/21 2:09 PM

TPMS

Figure 4: Removing and Installing Tire Pressure Transmitter. Lubricate the tire well, and remove the top side of the tire. Reach inside the tire and remove the transmitter.

Figure 3: Positioning Tire On Turntable. Carefully lift the tire onto the turntable and position the valve hole and transmitter 270 degrees from the mounting/demounting head.

provided “asleep” and must first be “woken up” using Transmitter Activation Tool J-45295 or Signal Tech II Tool J-50190 before ID registration can be performed. Use the following procedure when using the Transmitter Activation Tool J-45295: 1.

With the ignition switch in the OFF

IS THE ONLY

COMPLETE

2. 3.

position, connect the scan tool to the DLC. Turn the ignition switch to the ON position; Display the “WORK SUPPORT” screen and select “ID REGIST;” With the Transmitter Activation Tool (J-45295) pushed against the left front tire air-valve, press the button for

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4. 5.

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. Also ensure there is no metalized film or any metal parts (antenna, etc.) on the windows, as this may cause poor reception of the signals from tire pressure sensors and the TPMS will not function properly. NOTE: When a spare tire is mounted or a wheel or tire pressure sensor or low tire pressure warning control unit is replaced, the tire pressure sensor must be registered. See RESET PROCEDURES. TIRE PRESSURE SENSOR CAUTION: Do not inject any tire liquid or aerosol tire sealant into tires, as this may cause a malfunction of the tire pressure sensors.

94 1SensorKits-TS508-4.563x4.875-TPS-MTD-06172021.indd 1

06_MTD_Columns-TPMS.indd 94

five seconds. (See Figure 1.) Sensor activation must be performed in the order listed: left front, right front, right rear and left rear. As each sensor ID is activated, the TPMS warning light flashes is the pattern shown in Figure 2 and the scan tool indicator light changes from red to green; Check that the turn signal lights blink twice when the transmitter wake-up procedure for all wheels is completed; After completing the wake up of all transmitters, make sure the TPMS warning light goes out.

MTD September 2021 6/17/21 7:15 PM

9/2/21 2:10 PM

TPMS Removal 1. Deflate the tire. Unscrew the transmitter retaining nut and allow the transmitter to fall into tire; 2. Gently bounce the tire so that the transmitter falls to the bottom of the tire. Place the wheel and tire assembly on the tire changing machine and break both tire beads. Ensure that the transmitter remains at the bottom of the tire while breaking the bead; 3. Turn the tire so that the valve hole is at the bottom and gently bounce the tire to ensure the transmitter is near the valve hole. Carefully lift the tire onto the turntable and position the valve hole and transmitter 270 degrees from the mounting/dismounting head. (See Figure 3); 4. Lubricate the tire well and remove the top side of the tire. Reach inside the tire and remove the transmitter. (See Figure 4.); 5. Remove the second side of the tire, as normal. Installation 1. Place the first side of the tire onto the wheel. NOTE: After every disassembly, use a new seal; 2. Apply suitable silicone lubricant to the new seal, then install the seal on the sensor. Ensure that no burrs exist in the valve stem hole of the wheel; 3. Mount the transmitter on the rim and tighten nut to 61 to 72 inch-pounds (See Figure 4.) Do not touch the transmitter with the mounting head;

w w w . M o d e r n T i r e D e a l e r. c o m

06_MTD_Columns-TPMS.indd 95

TORQUE SPECIFICATIONS Component

Ft.-lbs.

(N.m)

Wheel nut

(113)

INCH Lbs.

(N.m)

(7.7)

Tire Pressure Sensor Nut

4. Place the wheel on the turntable of the tire machine. Ensure that the transmitter is 270 degrees from the mounting/ demounting head. (See Figure 3); 5. Lubricate the tire well and install the second side of the tire, as normal. Ensure that the tire does not rotate relative to the rim; 6. Inflate the tire. Balance the wheel and tire assembly; 7. Install the wheel and tire assembly in appropriate wheel position on the vehicle; 8. Register the tire pressure sensor. (See RESET PROCEDURES.) ■ Information for this column comes from the tire pressure monitoring systems data in ProDemandR, Mitchell 1’s auto repair information software for domestic and import vehicles. Headquartered in Poway, Calif., Mitchell 1 has provided quality repair information solutions to the automotive industry since 1918. For more information, visit www. mitchell1.com. To read archived TPMS articles, visit www.moderntiredealer.com.

9/9/21 10:15 AM

Products

Hercules Terra Trac line expands

Cooper Endeavor tires hit market

The Hercules Terra Trac AT line has been expanded to include two new products: the Terra Trac AT X-Journey, which addresses the growing CUV segment, and the Terra Trac AT X-Venture, which targets SUVs and light trucks. The tires’ range will eventually include 57 sizes for more than 80% coverage of the all-terrain market, according to American Tire Distributors Inc. officials. Now available, the new tires fit wheels ranging from 15 inches to 20 inches in diameter. AMERICAN TIRE DISTRIBUTORS INC. www.herculestire.com

The Endeavor and Endeavor Plus are the latest Cooperbrand tires for passenger cars and SUVs. Both versions of the tire come with a 65,000-mile warranty and are designed to offer longlasting treadwear, plus wet performance and steering response. The tires are made with a new silica tread compound and provide better wet and snow braking than their predecessors, the Cooper Evolution Tour and the Evolution HT. GOODYEAR TIRE & RUBBER CO. www.coopertire.com

New Rotary tire changer Nexen launches grand touring tire Now available for dealers throughout North America, Nexen Tire America Inc.’s new N Priz S grand touring tire will be original equipment on the 2022 Hyundai Kona in the United States. “The redesigned, compact SUV will feature 215/55R17 N Priz S grand touring tires from the factory to help the Kona deliver maximum ride comfort and fuel economy,” according to Nexen officials. NEXEN TIRE AMERICA INC. www.nexentire.com

Michelin adds 44 sizes to Pilot Sport All-Season 4 Michelin North America Inc. has added another 44 sizes to the Pilot Sport All-Season 4, including run-flat options. With this expansion, the all-season tire is available in 103 sizes for wheels ranging from 17 inches to 22 inches. The Michelin Pilot Sport All-Season 4 features an asymmetric tread pattern with more rubber on the outer shoulder to provide lateral dry grip. The tire’s tread compound grips wet surfaces and Michelin says the tire offers better dry braking, wet braking and snow traction than its predecessor. MICHELIN NORTH AMERICA INC. www.michelinman.com

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The recently introduced Rotary R1200 Leverless Pro tire changer is designed “to address some of the common challenges facing today’s modern shops,” while helping technicians more easily change highperformance tires and rims. Features include a quick-locking, adjustable center post that offers three different height options. Technicians can select the height that works best for each tire, helping to increase their productivity and improve efficiencies, while at the same time reducing the opportunity for injuries. VEHICLE SERVICE GROUP www.rotarylift.com

Nitto unveils Recon Grappler A/T The new Nitto Recon Grappler A/T from Nitto Tire U.S.A. Inc. is a “true, all-terrain tire option for compact, half-ton and one-ton trucks,” according to Nitto officials. The Recon Grappler A/T boasts deep sidewall lugs for enhanced traction and an aggressive look, as well as stable performance in both wet and dry conditions. The tire will be available in 11 sizes initially. Ultimately, it will be available in 66 sizes, for wheels ranging from 17 inches to 24 inches in diameter. NITTO TIRE U.S.A. INC. www.nittotire.com MTD September 2021

9/2/21 2:12 PM

PEOPLE | PRODUCTS | VEHICLES | IDEAS NOVEMBER 2–5, 2021 • LAS VEGAS CONVENTION CENTER • LAS VEGAS, NEVADA

SEMASHOW.COM/REGISTER

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Ad Index WHEN YOU CONTACT ONE OF OUR ADVERTISERS PLEASE BE SURE TO MENTION YOU SAW THEIR AD IN MODERN TIRE DEALER ADVERTISER

PAGE

TIRE DEALER OF THE YEAR AD INDEX

WEBSITE

1-800EveryRim OEM Wheels

www.everyrim.com/MTD

ADVERTISER

Atlas Platinum Equipment

www.tooltopia.com

American Pacific Industries

www.apitire.com

Bridgestone Americas Inc.

www.bridgestoneamericas.com

AUTEL

79, 83, www.autel.com 93, 94

PAGE

WEBSITE

BKT USA Inc.

www.bkt-tires.com

Carlisle TyrFil

www.carlisletyrfil.com

Blackburn OEM Wheel Solutions

www.blackburnswheelfinder.com

Carlstar Group

www.carlstargroup.com

Brake Parts Inc., Raybestos

www.raybestos.com

Chevron

www.chevron.com

Bridgestone Affiliated Retailer Nationwide Network

www.affiliatedretailer.net

Continental Battery Company

www.continentalbattery.com

Continental Tire

www.continental-truck.com

Cardinal Brokers LLC

www.cardinalbrokers.com

Centric Parts

www.centricparts.com

Cooper Tires

www.coopertire.com

Cool Boss, A BendPak Company

www.thecoolboss.com

Double Coin Tires

www.doublecointires.com

Delinte Tires

www.delintetires.com

First Horizon Bank

www.firsthorizon.com

Falken Tires

www.falkentire.com

General Tire

www.generaltire.com

FleetPride

www.fleetpride.com

GT Radial

www.gtradialsmartprogram.com

www.hunter.com

Hunter Engineering Company

www.hunter.com

Interstate Batteries

www.interstatebatteries.com

K & M Tire Inc.

www.kmtire.com

Maxam Tire North America Inc.

www.maxamtire.com

Katapult

www.katapult.com

McGee Company

www.mcgeecompany.com

Kenda Tires USA

IBC

www.kendatractionrewards.com

Michelin North America Inc.

www.michelin.com

Mohawk Rubber Sales

www.mohawkrubber.com

NAPA Auto Parts

www.napaonline.com

Pilot Company

www.pilotflyingj.com

Regions Bank

www.regions.com

Schrader TPMS Solutions

www.schradertpms.com

Sutong Tire Resources Inc.

www.sutongctr.com

Trelleborg Wheel Systems

www.trelleborg.com

Keter Tire USA

www.ketertireusa.com

Linglong Americas Inc.

www.linglongtire.com

Maxxis Tires

www.maxxis.com

Mr. Tire/Big 3 Tire

www.mrtirebig3tirectd.com

Nexen Tire America Inc.

IFC

www.nexentirenextlevel.com/ dealeremployee/registration

Nitto Tire U.S.A. Inc.

OBC

www.nittotire.com

Nokian Tyres Inc.

www.nokiantires.com

Schrader TPMS Solutions

www.schradertpms.com

SEMA Show

www.SEMAshow.com/register

Tireco Inc.

www.milestartires.com

Yokohama Off-Highway Tires America Inc.

www.yokohama-oht.com

Yokohama Off-Highway Tires America Inc.

www.yokohama-oht.com

Yokohama Tire

www.yokohamatire.com

ZC Rubber America Inc.

www.arisuntires.com

ZC Rubber America Inc.

www.zc-rubber.com

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MTD September 2021

9/7/21 12:56 PM

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Enhanced Dealer Performance Dashboard

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Realistic MAP Policy

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Modern Tire Dealer - September 2021

Articles inside

Products

Mergers and Acquisitions

Numbers That Count

Business Insight

moderntiredealer.com

TEN Insights