Industry News

Next Article

moderntiredealer.com

ModernTireDealer.com

DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER

Give MTD’s podcast a listen!

MTD’s podcast, The Modern Tire Dealer Show, is available through Spotify, Google Podcasts and other platforms. Start downloading episodes today!

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 De nitive Source for Tire Dealer Success.

MTD digital edition

Subscribe to Modern Tire Dealer’s digital edition at www.moderntiredealer.com

Like MTD on Facebook:

www.facebook.com/ModernTireDealer

Follow MTD on Twitter:

www.twitter.com/MTDMagazine @MTDMagazine

Stories about Discount Tire, including two covering its recent purchase of Tire Rack, continued to show up among the most-read articles on MTD’s website.

Mergers and acquisitions highlight most-read articles

Three articles about Discount Tire, including two detailing its acquisition of Tire Rack, were the most-read stories on MTD’s website during the past month. Other acquisitions also grabbed readers’ attention, with Mavis Tire Express Services Corp., Sun Auto Tire & Service Inc. and Distribution Stox Inc. making moves at the end of 2021.

1. Discount Tire CEO: ‘Nothing is off the table’ 2. Mavis to acquire Tuffy Tire & Auto Service 3. What’s next for Discount Tire and Tire Rack? 4. DOC lowers tariffs on Chinese truck tires 5. Harold Finkelstein of Max Finkelstein Inc. has died 6. A newbie learns the tire business 7. Discount Tire is acquiring Tire Rack 8. Sun Auto Tire adds T.O. Haas Tire to portfolio 9. Sell-out trends inch upward as 2021 wraps up 10. Distribution Stox adds 4 warehouses in acquisition

HOME OFFICE 3515 Massillon Rd., Suite 350 Uniontown, OH 44685 (330) 899-2200, fax (330) 899-2209 Website: www.moderntiredealer.com

PUBLISHER Greg Smith gsmith@10missions.com (330) 899-2200, Ext. 2212

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: Audrey Mundstock Production Manager: Karen Runion, ext. 2210 krunion@10missions.com Production Artist: Lauren Coleman

MARKETING STRATEGISTS Bob Marinez bmarinez@10missions.com (330) 899-2200, ext. 2217 Marianne Dyal mdyal@10missions.com (706) 344-1388 Dan Thornton dthornton@10missions.com (734) 676-9135 Sean Thornton sthornton@10missions.com (269) 499-0257 Kyle Shaw kshaw@10missions.com (651) 846-9490 Martha Severson mseverson@10missions.com (651) 846-9452

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.

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

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

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

Legislative issues to watch in 2022

TIA FOCUSES ON ESTATE TAX, FUEL EFFICIENCY, RIGHT TO REPAIR AND MORE

“We’re going to see a lot of legislation on both the state and federal levels” during 2022 that will impact independent tire dealers, notes Roy Littlefield IV, director of government affairs for the Tire Industry Association (TIA.)

At the federal level, “the first issue that’s going to be very important to tire dealers is the estate tax,” he says.

“The majority of our members are small, family-owned businesses and TIA does not believe that death should be a taxable event.

“TIA has pushed for full repeal of the estate tax in years past and we were able to double the exemption levels,” which will benefit business owners, says Littlefield.

“But in 2026, we’re going to revert to previous levels if something is not done.”

TIA also is pushing for supply chain relief and new ways to counteract the “extreme truck driver shortage.

“We’ve been extremely active on these issues. We’ve seen some action, but not enough. Certainly some (tires) are hard to get right now.

“When it comes to the driver shortage, this is an issue we’ve been facing for years, but I think COVID-19 has amplified the issue. It’s so hard to find reliable drivers right now.”

Turnover at fleets also is high, he notes.

“So TIA has done some things to try to address this issue,” including supporting the DRIVE Safe Act, which is part of the Biden Administration’s infrastructure bill.

The legislation creates a pathway for people under the age of 21 to qualify for a commercial drivers license after completion of training.

“We think potentially there is a large pool of younger drivers,” he says. mandate in California and tire registration fees are two other issues that TIA is tracking.

As detailed in the September 2021 issue of MTD, the California Energy Commission has been asked to adopt and implement a “statewide fuel efficiency program to ensure replacement tires sold in California are at least as energy efficient” as original equipment tires.

“Now it’s finally at the stage where we can see some action,” says Littlefield.

“TIA has been very involved in talking with the commission. They want to hear from different actors in the industry. What TIA has really pushed for is education.

“We spoke to the commission last (month). They’re going to begin testing rolling resistance levels of certain tires during the first half of 2022.

“The commission wants to take a hard look at the market to see what’s out there, what’s being sold and what the limitations are.

“If the commission is going to issue a proposal, it would come probably — at the earliest — at the end of 2022 and then there would be another comment period at that point.”

The issue of tire registration fines also remains on TIA’s radar, says Littlefield.

Last year, the United States Department of Transportation posted a notice in the Federal Register indicating that it had increased fines that could be applied to dealers who register tires incorrectly.

“It’s $24,000 per violation and up to $113 million per location,” says Littlefield.

“The fact (these fines) are still on the books and could be issued is very worrisome for us. We have still seen no action from” the National Highway Traffic Safety Administration (NHTSA).

“I think what NHTSA is waiting for is for the industry to come together — the retail side and the manufacturing side —

“We really need a federal response,” on Right to Repair. “Earlier this year, President Biden issued an executive order on Right to Repair and since then, TIA has had several conversations with the Federal Trade Commission on this issue.”

and (issue) a proposal to solve this. We’re still going to meet with NHTSA and will still meet the issue head-on.”

Littlefield notes that commercial truck tires also have to be registered properly at the point of sale.

RIGHT TO REPAIR UPDATE

Ensuring that tire dealers have access to telematically transmitted vehicle diagnostic and repair data will remain another important effort, according to Littlefield.

“Last year, we had a ballot referendum that passed in Massachusetts and we worked closely with the New England Tire & Service Association on this.”

The effort “really showed the power of local, grassroots connections.

“This ballot issue is going to allow owners of vehicles to get the mechanical data they need to allow their (preferred) shops to repair” their cars.

“But we really need a federal response. Earlier this year, President Biden issued an executive order on Right to Repair and since then, TIA has had several conversations with the Federal Trade Commission on this issue.”

Bites

Bridgestone hikes prices

Bridgestone Americas Inc. increased prices of its Bridgestone and Firestone brand medium truck and bus tires, OTR tires and Firestone brand ag tires up to 14% on Feb. 1.

Yokohama enacts increase

Yokohama Tire Corp. raised its consumer replacement tire and commercial truck tire prices on Feb. 1. The hikes apply to products sold in the United States. Speci c increase amounts were not disclosed.

Pirelli to t Mustang EV

Pirelli & Cia SpA has created a P Zero ultra-high performance tire for the 2021 Ford Mustang Mach-E GT Performance Edition. The tire is available in size 245/45R20 103Y XL, with special markings on the sidewall to denote use on electric and hybrid vehicles.

ATD donates $1 million

American Tire Distributors Inc. has donated $1 million to the Gary Sinise Foundation, which supports service members, veterans, rst responders and their families through various programs. The gift will support the non-pro t’s new Avalon Network initiative, which addresses the mental health of veterans and rst responders.

Tire Discounters gives to WWP

Tire Discounters Inc. has raised $131,095 for Wounded Warrior Project, a non-pro t that provides services to injured veterans and their families. The amount is a “fundraising record” for Tire Discounters, according to a statement from the Cincinnati, Ohio-based dealership, which has nearly 150 locations.

Plaza Tire adds location

Cape Girardeau, Mo.-based Plaza Tire Service Inc., which is owned by Sun Auto Tire & Service Inc., recently added its fth location in northwest Arkansas. Plaza Tire Service now operates 71 stores throughout Missouri, Illinois, Kentucky and Arkansas.

DOC lowers some CV rates

The United States Department of Commerce has imposed lower countervailing duties on medium truck and bus tires made in China. Prinx Chengshan (Shandong) Tire Co. Ltd. will now pay countervailing duties of 17.4%, while Quingdao Ge Rui Da Rubber Co. Ltd. will pay duties of 14.7%. Other named companies will pay duties of 15.6%.

Steve Shannon Tire opens retread plant, picks Pre-Q Galgo

Bloomsburg, Pa.-based Steve Shannon Tire Co. has opened a new medium truck tire retread plant in its hometown and has joined Pre-Q Galgo Corp.’s network of independent retreaders. e state-of-the-art plant has the capacity to produce “well over 200 retreads a day,” says Jesse Shannon, the dealership’s co-CEO. Steve Shannon Tire has more than 30 locations throughout Pennsylvania and New York.

“We chose Pre-Q Galgo as our tread rubber supplier because of their excellent reputation for quality products and outstanding customer service,” says Shannon.

“We are excited to add Pre-Q Galgo retreads to the long list of products and services we o er that includes new tires from passenger to OTR, state-of-the-art service vehicles, Tire Industry Association-certi ed service specialists, eet management, sales professionals, mechanical services and a complete eet solution management program.”

“We are proud to welcome Steve Shannon Tire to the Pre-Q Galgo family of independent retreaders,” says Eduardo Nava, vice president, Pre-Q Galgo.

“Steve Shannon Tire has an excellent reputation for servicing its customers with the highest standard of quality and service.”

Steve Shannon Tire Co. has opened a new retread plant and has joined Pre-Q Galgo Corp.’s network of independent retreaders. Rice Tire has acquired American Fleet Services, a commercial tire dealership in the Richmond, Va., area. Rice Tire now has 12 locations.

Rice Tire acquires commercial tire dealership

Frederick, Md.-based Rice Tire Co. has acquired American Fleet Services, a commercial truck tire dealership that serves the Richmond, Va., market. e deal includes a store in Ashland, Va., which has become Rice Tire’s 12th location.

Rice Tire o cials say the addition of the outlet expands their company’s service capabilities along Interstate 95, a major north-to-south corridor. e location will be managed by John Brookins and overseen by Rice Tire Regional Manager Mike Anderson. Rice Tire also operates two retread plants.

Bites

Mavis acquires Action Gator

Mavis Tire Express Services Corp. has acquired Orlando, Fla.-based Action Gator Tire Stores’ retail outlets. Action Gator was listed as the 48th largest independent tire dealership in the United States in the 2021 edition of the MTD 100. The dealership was owned by Christensen Enterprises.

Bridgestone adds EV services

Bridgestone Americas Inc. plans to expand its menu of services for electric and hybrid vehicles at nearly 45 of its company-owned stores. Markets include Austin, Texas, and San Francisco, Calif. Bridgestone also will install 50 charging stations across four markets during the first quarter of 2022.

Michelin buys non-tire business

The Michelin Group has acquired 100% of AirCaptif, a France-based start-up that develops ultra-light inflatable structures “for protection and insulation,” according to Michelin officials. The acquisition is part of the company’s “Michelin In Motion” initiative, announced last year, that calls for up to 30% of the company’s total revenue to “come from activities related to and beyond the tire.”

SRNA names new CFO

Tony Beiner is Sumitomo Rubber North America Inc.’s new chief financial officer. Beiner, who joined the company in 2018 as its corporate controller, was promoted to its vice president of finance in 2020. He has 20-plus years of leading finance functions.

Love’s to expand network

Love’s Travel Stops is planning to open more than 20 Love’s Truck Care and Speedco locations during 2022 as part of an overall expansion push. There are currently 420 outlets in the Love’s Truck Care/ Speedco network.

Volkswagen picks Nexen

Nexen Tire America Inc.’s N’Fera AU7 ultrahigh performance all-season tire will be original equipment on the 2022 Volkswagen Jetta in the United States.

Tire Cologne gears up

Around 300 companies from more than 30 countries are expected to exhibit at The Tire Cologne, which will take place May 24-26, 2022, in Germany.

U.S. AutoForce acquires Max Finkelstein

U.S. AutoForce LLC has acquired Max Finkelstein Inc., which is based in Astoria, N.Y., and operates 15 distribution centers throughout the Northeast and Mid-Atlantic regions. Terms of the deal have not been disclosed.

U.S. AutoForce now operates 62 distribution centers throughout 45 states. It acquired Treadmaxx Tire Distributors, which added 14 locations to its footprint, last year.

“We will be able to combine our resources and build on the impressive momentum Max Finkelstein has created in serving their customers so passionately for over 100 years,” says Pat Hietpas, president of U.S. AutoForce, which is based in Appleton, Wis.

“We welcome the opportunity to provide many additional products and programs to our valued customers,” Ira Silver, Max Finkelstein’s president and CEO, said when the deal was announced. The transaction closed on Jan. 31.

U.S. AutoForce added 15 distribution centers in the Northeast and Mid-Atlantic areas via its purchase of Max Finkelstein Inc. Harold Finkelstein (far right) and his brother, Jerry — pictured in 2019 with Goodyear Tire & Rubber Co. Chairman, CEO and President Rich Kramer — developed Max Finkelstein Inc. into a 15-location operation.

Harold Finkelstein dies

Harold Finkelstein, longtime co-owner of Max Finkelstein Inc., which was acquired by U.S. AutoForce LLC last month, died in December at the age of 86. Harold and his brother, Jerry, took ownership of the wholesale-distributor

in 1973.

They grew the company, which was founded in 1919, from a store in Astoria, N.Y., into a 15-outlet operation.

Finkelstein’s family notes that “from the start, it was clear that he was a gifted and savvy businessman. He conducted business with passion, charisma and had a natural ability for building relationships with customers, associates and vendors, whom he treated like family.

“His lifelong dedicaion to Max Finkelstein Inc. and all that we hold dear will live on for generations.”

Finkelstein also was a past New York Tire Dealers Association president.