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Nexen wants more

A 3.25% MARKET SHARE TOPS THE LIST OF AMBITIOUS GOALS

Our goal is to achieve a market share of 3.25% by 2020 while maintaining and developing a balanced distribution network throughout the North American Market.”

That’s the clear message John Hagan, executive vice president of sales for Nexen Tire America Inc., delivered during a dealer appreciation event in Napa, Calif., in early April.

Hagan also told dealers that the company wanted to “market the Nexen brand in a way that supported Nexen and its customers’ goals.”

Globally, Nexen wants to become the 10th largest tire producer by 2025. Currently the company is ranked 14th with roughly $1.8 billion in annual sales.

During a sit-down interview with Modern Tire Dealer, Hagan provided additional insight.

“The 3.25% is for the consumer replacement market. We believe we are at 2.1% right now,” says Hagan. To obtain the increase, Nexen wants to leverage its original equipment business, particularly for consumers coming in for the “first time replacement” of tires.

The company enjoyed a 10% increase in unit volume during 2018, and plans to increase volume again this year, says Hagan. This will come about in spite of a market that he views will be flat, at best. “We’re looking to gain ground with increases through our existing customer base and adding new customers.”

Hagan says the company sees growth opportunities in the Northeast and Northwest, both at the wholesale and retail levels.

Nexen has streamlined its decision

Nexen Tire America’s marketing initiatives for the Roadian MTX tire included hosting off-road driving events for social media influencers, who publicized the tire by sharing their driving experiences via their blogs and social networks.

making process and is committed to getting answers back to dealers within a 24-hour cycle. Hagan says it is critical to do so because dealers need answers quickly, as evidenced by how rapidly market conditions have changed over the course of the last two years.

Although no new product lines are being introduced during 2019, Hagan says there are plans for new lines in 2020. The company is focusing on its Roadian MTX line, which was introduced last year.

Hagan says Nexen also will continue to expand its vision by moving beyond passenger and UHP tires and into SUV/ CUV and light truck tire lines. At the same time, the company continues to increase its emphasis on the UHP side of the business.

Earlier this year, Nexen hired Megan Wentz as its marketing manager. She told MTD that her immediate plans are to “use the first half of this year to focus on planning, refining and promoting the successes in recent years through 2019, such as with the Nexen Heroes campaign. We then want to get a jump start on planning for 2020 and beyond to ensure longevity and consistency.”

The company is continuing its American Muscle for American Heroes campaign. Last year, Nexen partnered with the Purple Heart Foundation for the program.

The parent company, Nexen Tire Corp., is continuing its sponsorship of Manchester City soccer, and Wentz is looking “for opportunities to promote global efforts, such as this sponsorship, throughout the U.S. market as well.”

Nexen’s new technical center in Ohio plays a pivotal role in bringing new products to the North American market, says Hagan. For instance, the center is working on EV (electric vehicle) tire technology to be ready for those fitments as they become available.

The company’s NexenACE training program has far exceeded its expectations. “When it started, it was for our associate dealers with a connection to our company store,” says Hagan.

“Now, we’re seeing a lot of usage and our challenge is to keep it fresh.”

The company recently added reminder cards that can hang from a car’s mirror to its portal. Hagan says the test went so well that they ran out of cards within two days, “a great problem to have!”

Looking forward, Nexen has no plans to have a manufacturer’s direct-to-consumer website. Hagan says the company works with its dealers and distributors for online exposure and directs everyone to hold to the manufacturer’s suggested retail price, but does not intend to have MAP pricing. — Greg Smith

News/Views Bites

FutureTechs winners rock

The TechForce Foundation has named 10 automotive, diesel, motorcycle and collision repair technician students winners of its 2019 FutureTechs Rock Awards, with the grand prize going to an Ohio student. The awards are part of the FutureTech Success initiative to help inspire and support tomorrow’s workforce of technicians.

Bush will speak at AAPEX

Former President George W. Bush will be the keynote speaker at the 2019 Automotive Aftermarket Products Expo (AAPEX) Grand Opening Keynote Session on Tuesday, Nov. 5.

Continental expands plant

Continental Tire the Americas LLC is expanding its Sumter, S.C., tire plant so the company can begin making ContiSeal and ContiSilent tires in the U.S. for the first time. Tire production is expected by May 2020.

Discount Tire has new ads

Discount Tire says its new advertising campaign, “Let’s Get You Taken Care Of,” showcases “the expertise, authenticity and empathy found in each and every Discount Tire expert.”

Atturo donates tires

For the second straight year, Atturo Tire Corp. is supplying tires for the Specialty Equipment Market Association (SEMA) High School Vehicle Build. Students in five high school automotive shop classes are building custom vehicles as part of the SEMA-funded program.

Pep Boys expands ‘Crew’

Icahn Automotive Group LLC is expanding its Pep Boys Mobile Crew service to provide on-site common maintenance and repair needs to any size fleet. The new program is called Pep Boys Fleet.

Bauer Built is honored

Bauer Built Inc. has received the Bert Grover Child Advocacy Award from the Wisconsin Association of School District Administrators (WASDA) in recognition of providing support for the youth in the state.

VIP adds store in Framingham

VIP Inc., dba VIP Tires & Service, has opened its fourth store in Massachusetts, and 59th location overall.

Telle Tire hits double digits with 10 stores

Telle Tire has acquired its 10th store. The former Assured Automotive store in Eureka, Mo., joins eight other Telle Tire locations across the St. Louis metro area.

Telle Tire & Auto Service Inc. has acquired its 10th location, and owner Aaron Telle says his tire dealership will spend 2019 improving operations, creating and implementing a new pointof-sale system and adjusting to the company’s new five-day workweek.

The company, dba Telle Tire & Auto Centers, finished 2018 with its fourth acquisition. Telle Tire bought Assured Automotive in Eureka, Mo., in December.

Telle, a fourth generation tire dealer, is the CEO and president of Telle Tire. He says the Eureka store has been rebranded as Telle Tire. Renovations include a new waiting room with modern furniture and wireless work stations. Customers have access to a refrigerator full of free water and soft drinks, plus fresh fruit and snacks. Service bays have been updated with new equipment to add tire services and continue the previously available automotive repairs.

All of that came after Telle Tire was ranked the 17th fastest growing company in St. Louis by the St. Louis Business Journal in 2017. In 2011 Telle Tire had a single location and seven employees. It now has 10 stores and 76 employees.

2018: GROWTH AND A FOCUS ON CUSTOMER SERVICE Last year, Telle Tire’s focus was on expanding its footprint — the company moved outside of the St. Louis metro area with its acquisition of Kwik Kar & Lube in Jefferson City. But throughout the year Telle Tire also worked to provide top notch customer service, including valet car service and complimentary loaner cars. Telle Tire owns 14 loaner cars and is purchasing four more in 2019.

Telle Tire also offers online appointment booking, and with digital inspections and valet service, customers can be informed of their car’s needs and make decisions from any location.

2019: THE YEAR OF THE EMPLOYEE As of Jan. 1, 2019, Telle Tire has changed its business hours in the greater St. Louis market. Stores are open only Monday through Friday. (The store in Jefferson City remains open on weekends.)

“In addition to providing top of the line services for their customers, Telle Tire has a lot of pride in its small business culture, specifically listening to the interests of their associates,” Telle says. “The decision to close stores on weekends was the result of an employee survey, with an overwhelming majority identifying weekends off as a huge benefit within the industry.”

Telle says he’s excited about the talent and experience in the company’s employee ranks, and he’s open to leveraging their ideas while “making culture a key focus to drive future success.”

In 2019 the company will focus on improving processes and operations. Among the projects in the works is the development of a new POS system with Tire Gurus. The company expects the fall rollout to result in increased administrative efficiencies.

Telle says, “We recognize the potential challenges in quick growth and are excited to spend 2019 focused on deepening our values through our culture and ensuring our business operations fully leverage the synergies and talent within the company prior to further expansion in 2020.” — Joy Kopcha

Bites

US Motor Works has tips

US Motor Works LLC is sharing its expertise in a new educational series for technicians. The first installment, “Success in Cooling,” covers water pumps and is available in print or by download from the company’s Pro Tech Center.

Ford expands parts rewards

Ford Motor Co. is adding a new level of rewards to its Ford Professional Service Network (PSN) wholesale parts program for independent repair facilities. The updated program has a tiered membership structure, featuring a standard base program along with a new elite level of membership.

OK Tire is growing

OK Tire Stores Inc. plans to spend $100 million over five years to expand its distribution capabilities in Canada. There are more than 300 independently owned and operated OK Tire stores across Canada.

Giti sponsors contest

For the third year in a row, Giti Tire (USA) Ltd. sponsored a STEAM (science, technology, engineering, arts and mathematics) competition with the Chester County School District, S.C., where the company has a manufacturing plant.

The Alliance earns honor

GCommerce Inc., a provider of cloud-based automation solutions, has named the Aftermarket Auto Parts Alliance Inc. to its GCommerce Hall of Fame.

USTMA says ‘Know Your Roll’

During National Tire Safety Week May 20-27, consumers will be prompted to “know your roll” and perform basic tire maintenance. The U.S. Tire Manufacturers Association (USTMA) says tire safety week also will focus on unsafe used tires.

Yokohama is top supplier

Yokohama Tire Corp. has earned Caterpillar Inc.’s platinum supplier award for the seventh straight year.

TravelCenters expands

TravelCenters of America LLC has added a TA Truck Service center off Interstate 85 southwest of Atlanta.

Nexen opens global hub for research and development

Nexen Tire Corp. has invested more than $171 million and opened a 10-story building in Seoul to serve as its global hub for research and development.

The company spent two years building the space, which houses research and business complexes in more than 613,000 square feet. There’s room to focus on smart technology, including a research and development center that can predict and implement

optimal performances such as original equipment and replacement product manufacturing, artificial intelligence technology, virtual tires, a center to More than 300 people attended the grand opening of evaluate the performance Nexen’s UniverCity in Seoul. It will serve as the comof tires and vehicles, and pany’s hub for research and development. a material research center to analyze diverse nano and macro dimensions on various materials. The center will serve as the hub for research and development efforts in Yangsan, Changnyeong, Germany, the Czech Republic, U.S., and China.

What to do when Bridgestone closes 13 stores in your market

Bridgestone Retail Operations LLC has closed 13 of its 14 Firestone Complete Auto Care stores in the greater Salt Lake City area. For Burt Brothers Tire and Service Inc., that spells opportunity.

Jeremy Burt, operations and marketing manager for Burt Brothers, says the independent tire dealer is working to capture three things:

• consumers who now are looking for a new source for tires and auto repair; • employees who are suddenly out of work; and • opportunity to expand to meet the market need.

On the consumer end, Burt Brothers has announced in local media that it will honor all of Firestone’s consumer agreements and warranties. It’s also telling consumers that Burt Brothers is “the only local, direct Firestone dealer in Northern Utah,” that it has “one of the largest Firestone tire inventories in the state,” and that the dealer will accept the Firestone credit card.

“We will make this a seamless transition for customers,” Burt says. “We will honor all Firestone warranties and take care of all tire rotations and balances, flat repairs and other needs.”

As for employees, it’s well known in the industry that it’s hard to find good workers, especially technicians. Burt Brothers wants to engage the dismissed workers, too.

Burt Brothers hosted a job fair for former Firestone employees at its Burt Brothers corporate office on April 5 — three days after Bridgestone closed its doors.

The closing of the stores also presents an opportunity for Burt Brothers to expand. The company, led by brothers Ron Burt and Wendel Burt, was founded in 1991, and operates 11 stores along the Wasatch Front in northern Utah. A second generation — Ron and Wendel’s sons, including Jeremy Burt — have joined the company.

Jeremy Burt says the company “is also looking for opportunities to reopen the Firestone shops under the Burt Brothers name.”

Bridgestone didn’t specify the reason for the closures, other than to say it made the “difficult decision.” Burt Brothers says the closure was “due to a master lease agreement.” — Joy Kopcha

News/Views Bites

The Group honors vendors

The Automotive Parts Services Group (the Group) presented its Co-Man Vendor of the Year award to KYB Americas Corp. The CoMan Vendor of the Year for Order Fill award went to Fram Group IP LLC’s Autolite Division.

ATD is recognized

American Tire Distributors Inc. (ATD) has won three Blue Diamond Awards from the Charlotte Area Technology Collaborative for creating business value in the use of information technology systems and contributing to the development and recruitment of IT talent to the Charlotte area.

Tenneco supports students

Tenneco Inc. donated Rancho-brand ride control parts to two high school automotive programs participating in the 2019 Specialty Equipment Market Association (SEMA) High School Vehicle Build.

Monro moves into Louisiana

Monro Inc. acquired Allied Discount Tire & Brake Inc. on March 31. The 12 stores, which are expected to add $15 million in sales with a mix of 35% service and 65% tires, will be rebranded as Tire Choice.

Tirescanner names sales VP

Scott Friedman is joining Tirescanner as vice president of sales. He previously spent three years leading marketing at Jack Williams Tire Co Inc.

Sullivan Tire turns 64

Sullivan Tire Co. Inc. is celebrating its anniversary with help from Goodyear Tire & Rubber Co., and a visit from the blimp.

Tariffs cost Cooper $10 million

New tariffs on truck and bus tires from China cost Cooper Tire & Rubber Co. $10 million in the first quarter of 2019. The company says it expects the tariffs will cost $50 million by year’s end.

Engine light repairs cost more

In its most recent CarMD Vehicle Health Index report, CarMD.com Corp. said U.S. vehicle owners paid 6.5% more on average to repair check engine light issues in 2018 than in 2017.

Bridgestone’s retreading campaign promotes fleets

The 2019 Fleets We Depend On Roadshow made its way to Akron, Ohio — home of the Bridgestone Americas Technical Center.

The Bandag roadshow is part of Bridgestone’s industry-wide campaign focused on educating

small- to medium-sized fleets on the advantages of retreads.

“Fleets are constantly looking for new ways to improve efficiency, remain competitive and increase safety,” said LaTres Jarrett, Bandag managing director for Bridgestone

LaTres Jarrett, director of marketing for Bandag, told people at the Fleets We Depend On Roadshow in Akron that a retread tire is produced with 15 gallons less oil than a new tire.

Americas Tire Operations LLC. “Fleets are looking to tire manufacturers to help them evolve and improve across key performance indicators, including safety, cost, productivity and efficiency.

“As the market dynamics change, we as tire manufacturers must also change. Delivering products is no longer enough to satisfy (fleet) managers. We must deliver holistic tire solutions to maximize tire performance.”

For Bridgestone, the common denominator for its cradle-to-grave solutions is the casing, which Bridgestone refers to as a “sustainable asset.” The outdoor Bandag display featured a Bandag truck tire casing that had traveled 1 million miles. — Bob Ulrich

Michelin opens a supersized distribution center

Michelin North America Inc. has opened its largest distribution center in the world — in Greenville, S.C. It spans 45 football fields with the capacity to move 4 million tires a year.

The company began building the gigantic distribution center in November 2016, and as of April 2019, it is fully operational. Michelin says the goal of the mega distribution center is to provide better product availability by consolidating inventory in one site to serve the southeast U.S.

Known as the Woodruff U70, the distribution center is Michelin’s biggest. Here are the details at a glance:

• It consists of five buildings. • Each building is as large as nine football fields. • It covers more than 3 million square feet. • The center will accommodate more than 4 million tires a year, using Michelin’s first automated, robotic system.

• The automated system includes 16 robots and 29 cranes. • The facility will have the capacity to process 200,000 tires a day — 24 hours a day, seven days a week. • Shipments will roll on 100-120 trucks per day. • Total truck capacity: 550 trucks. • Customers served: nearly 3,000.

Michelin’s systems team installed two key digital tools: the warehouse management system (WM6) and the yard management system (YMS).

The center is Michelin’s first fully, genuinely paper-free site. Barcodes, scanners, RFID chips and computers have replaced the paper trail. The company considers it a step in improving its global supply chain.

The buildings are awaiting Leadership in Energy and Environmental Design (LEED) certification.

Dates

May 22-26

Autopromotec, Bologna Exhibition Centre, Bologna, Italy +39 051 6424024 www.autopromotec.com

June 4-6

Automechanika Birmingham, National Exhibition Center (NEC), Birmingham, England +44 (0) 1483 483984 www.automechanika-birmingham.com

June 10-12

Automechanika Dubai, Dubai World Trade Centre, Dubai, United Arab Emirates www.automechanikadubai.com

June 13-14

Asian Tyre and Rubber Conference, Chennai, India +91-9833 901 586 www.atrc.in

June 22-23

Alabama Tire Dealers Association Convention, The Lodge at Gulf State Park, A Hilton Hotel, Gulf Shores, Ala. (256) 616-3587 www.alatiredealers.com

July 10-12

PAACE Automechanika Mexico, Centro de Convenciones Banamex, Mexico City (770) 984-8016 www.messefrankfurt.com

July 24-26

Latin American & Caribbean Tyre Expo & Latin Auto Parts Expo, Amador Convention Center, Panama, Republic of Panama (786) 573-0757 www.latintyreexpo.com

Aug. 19-21

China International Tire Expo (CITEXPO), Shanghai World Expo Exhibition & Convention Center, Shanghai, China +86 10-8589-8181 www.citexpo.com.cn

Oct. 17-19

Kazakhstan International Exhibition for Tyre and Tyre Repair Equipment, IEC AtakentExpo Ltd., Almaty, Kazakhstan +7 727 275 13 57, 275 09 11 www.autoshow.kz

Falken turns training focus on commercial tire dealers

Falken Tire Corp. has expanded its dealer education program, Falken Academy, with sessions dedicated to commercial tires. The Falken Commercial Tire Academy incorporates lessons on products, quality assurance, plus sales and marketing.

Falken held the first commercial-focused academy in April at its Rancho Cucamonga headquarters. In 2018 the company launched a similar dealer-focused training focused on passenger and light truck tires.

The day-and-a-half-long session gave Falken commercial tire dealers more exposure to the brand’s products, and also allowed them to provide the company with feedback related to the commercial truck and bus tire market.

The training session featured a hands-on alignment exercise led by Mike Beckett of MD Alignment Services Inc.

“It’s important, as a partner to our dealers, that Falken continually provides a platform to Falken brought its commercial tire

customers together to California for

exchange information on topics that improve the company’s first Falken Commerbusiness relations at the fleet level and shares cial Tire Academy in April. real-world experiences where tire maintenance and best practices are applied,” says Bob Klimm, director of commercial tire sales for Falken. “We were glad to have such a good turnout with strong participation from many key Falken dealers.”

The Falken Commercial Tire Academy covered the basics, such as proper tire applications and commercial tire maintenance, as well as more specific discussions on how to correct irregular wear. Falken’s experts addressed best sales practices, provided a detailed feature and benefit analyses on specific Falken tire offerings, and detailed the brand’s customer support that extends after the tire purchase.

“From a product planning perspective, the feedback we were able to capture during the Falken Academy has been invaluable,” says Raul Garcia, product planner for commercial truck and bus tires. “I look forward to applying those inputs to enhance upcoming development efforts.”

Armstrong replaces Sweatman at Marangoni

Clif Armstrong knows he has big shoes to fill at Marangoni Tread North America Inc. He has replaced CEO and President Bill Sweatman, who retired on May 1, 2019.

Sweatman was with Marangoni more than 18 years, the last 16 as CEO and president.

“I started in the tire industry in 1977 and the retreading industry in 1984,” said Sweatman. “The industry has been ARMSTRONG very good for me and my family, and I would like to thank the employers, peers, customers, suppliers and friends for this experience, and I wish all well.”

Armstrong joined Marangoni in 2017 as vice president of business development. Armstrong brings more than 35 years of industry experience to his new role as CEO and president. He has served in multiple executive management functions including sales, marketing and operations. Ringtread, Marangoni’s flagship product,

SWEATMAN is a double-contoured precured tread molded in a circular shape; as a result, it does not need to be spliced like other precured retreads used in commercial truck tire retreading. ■