Industry News

from Modern Tire Dealer - January 2023

by EndeavorBusinessMedia-VehicleRepairGroup

TPMS

ModernTireDealer.com

DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER Stay tuned to MTD’s podcast!

The Modern Tire Dealer Show is available on Stitcher, Spotify, Apple Podcasts, Google Podcasts, iHeart Radio, Amazon Music, Audible and MTD’s website. Download it today!

eNewsletters

Sign up now for Modern Tire Dealer’s e-Newsletters. We’ll send you the latest tire news and our most popular articles. Go to www.moderntiredealer. com and scroll down to The Modern Tire Dealer Newsletter is the Definitive Source for Tire Dealer Success.

MTD digital edition

Check out MTD’s digital edition at the top of our website’s homepage.

Like MTD on Facebook:

www.facebook.com/ModernTireDealer

Follow MTD on Twitter:

www.twitter.com/MTDMagazine @MTDMagazine

As tire dealers continue to monitor their supply, 2023 is starting off with a new wave of tire price increases.

Photo: MTD

Tiremakers’ pricing, strategy moves matter

If you thought 2023 would come without a new wave of tire price increases, the flip of the calendar might have left you slightly disappointed. But the good news is that MTD has plenty of insights into what tire manufacturers are thinking and planning for the year ahead — and readers are noticing. Three of last month’s top stories are exclusive interviews with leaders from various tire manufacturers. And don’t worry, we have more of those exclusive interviews up our sleeve in 2023.

1. Michelin to enact up to a 9% price increase 2. Sullivan Tire eyes more growth in 2023 3. Giti doubles down on commitment to U.S. market 4. Hankook’s Williams discusses company’s growth strategy 5. SRNA’s Darren Thomas weighs outside forces versus strategy 6. Why commercial tire dealerships are installing dash cams 7. Bridgestone plans PLT price increase 8. USTMA predicts 400,000 fewer tires shipped in 2022 9. Focus on car count, sales agility in 2023 10. How Westside Tire & Service thrives during tough times

HOME OFFICE 3515 Massillon Rd., Suite 200 Uniontown, OH 44685 (330) 899-2200, fax (330) 899-2209 Website: www.moderntiredealer.com

PUBLISHER Greg Smith gsmith@endeavorb2b.com (330) 899-2200, Ext. 2212

EDITORIAL Editor: Mike Manges, ext. 2213 mmanges@endeavorb2b.com Managing Editor: Joy Kopcha, ext. 2215 jkopcha@endeavorb2b.com Associate Editor: Madison Gehring, ext. 2216 mgehring@endeavorb2b.com

PRODUCTION Creative Services Director: Zach Pate Art Director: Jonathan Ricketts Graphic Designer: Audrey Mundstock Production Manager: Karen Runion, ext. 2210 krunion@endeavorb2b.com

MARKETING STRATEGISTS Bob Marinez rmarinez@endeavorb2b.com (330) 899-2200, ext. 2217 Marianne Dyal mdyal@endeavorb2b.com (706) 344-1388 Dan Thornton dthornton@endeavorb2b.com (734) 676-9135 Sean Thornton sthornton@endeavorb2b.com (269) 499-0257 Kyle Shaw kshaw@endeavorb2b.com (651) 846-9490 Martha Severson mseverson@endeavorb2b.com (651) 846-9452 Chad Hjellming chjellming@endeavorb2b.com (651) 846-9463

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 571 Snelling Ave. N. St. Paul, MN 55104 (651) 224-6207

CORPORATE OFFICER Vice President: Chris Messer

Giti doubles down on commitment to U.S. market

‘OUR PRESENCE HAS BEEN REDEFINED,’ SAYS CEO PHANG

Giti Tire (USA) Ltd. is doubling down on its commitment to the United States market. “Our presence in America over the last decade has been redefined,” says Wai Yeen-Phang, the company’s CEO.

Phang — along with David Poling, Giti Tire’s director of tire development and product marketing — recently sat down with MTD in Las Vegas, Nev., to discuss the company’s performance, production, new product plans, dealer strategy and more.

MTD: Describe Giti Tire’s performance in the U.S. this past year.

Phang: I would say that our challenges are just like anyone in this industry as we have gone through the last few years. We had the pandemic. Then we had global supply chain disruptions. Our challenges were the same as everyone’s challenges. But most importantly for us, we kept focus on our objective.

If you look back, we have been in the market for more than 25 years. At this stage in the lifecycle of our organization, we made the decision to reinvent our global manufacturing footprint. This led to repositioning and realignment and the coming onstream of our plant in Chester County, S.C.

We have built a very substantial (business) in the U.S. and it’s obvious you need to have a manufacturing base where the market is. Over time, this will help alleviate the supply situation. We have stayed focused on this direction and that is the core substance of our business.

MTD: What role has the South Carolina plant played in Giti’s growth?

development of manufacturing has been ongoing. To set up a tire factory and for it to reach its first stage of maturity will take about a decade and we are halfway there.

The most important thing (has been) training the first generation of the plant’s workforce and we are happy to say that in terms of the competency of the factory and the competency of our workforce, we are on target.

The (South Carolina) location is integrated from research and development all the way through manufacturing. Out of this facility, we are able to prove to the market that we can make challenging products that require manufacturing and design technology.

MTD: Are most of your tires sold in the U.S. made at that plant?

Phang: Not at this moment. Even 10 years from now, it will still be a combination of imports and (tires) from South Carolina.

MTD: Tire dealers are telling us that domestic and import supply is less of a problem than it was 12 months ago. Many dealers are sitting on a glut of tires. Has this forced you to change production or the number of units you’re bringing in from outside the U.S.?

Phang: All of us know that the American market goes by selling cycles and selling seasons. This year, unfortunately, the selling season has been impacted by inflationary forces. And like anyone else, in the early part of the year, supply disruptions (created) a big backlog. We were not spared from this impact. So right at this moment, everybody is rebalancing supply and demand. We will just have to react accordingly.

“We have reinvented ourselves,” says Wai Yeen-Phang, CEO of Giti Tire (USA) Ltd.

Photo: MTD

Giti has maintained a steady cadence of new product introductions. Why is this important?

Poling: It’s important that we continue to refresh our product lines. Even during (the pandemic) when we faced challenges, since we have a R&D facility located at our plant, we were able to keep our development ongoing. We have a full pipeline of products that are available and ready to go.

And it’s important we continue to show our high level of technical expertise in rolling out these products. Dealers are always looking for that next new product that meets market trends.

MTD: Giti introduced two commercial truck tire lines under the GT Radial brand in 2021. How were they received by the marketplace?

Charge less and go further.

“It’s important that we continue to refresh our product lines,” says David Poling, Giti Tire’s director of tire development and product marketing.

Photo: MTD selective with the GT Radial brand. I think this is going to be very key for us in making our brand stand out.

MTD: Are you satisfied with the coverage you have achieved in the U.S. dealer channel?

Phang: If you look at the channel, the American tire market is already very mature, very saturated and highly fragmented. We are reaching a stage where there are very massive changes in the structure of (tire dealer) ownership. There are very few first generation dealers left. That’s why there’s so much M&A. It’s like musical chairs. I would say that we are watching.

Developing our sales channel is a neverending journey. There will never be enough. We have to look at where we are, our availability of products and what we can provide to the North American market.

MTD: What are some of Giti’s biggest opportunities at the moment?

the needs of our customers. We balanced the applications and balanced the performance between running line-haul routes and regional routes. We did a lot of work to define what we put into the design of the tires and we hope to carry on in that direction by adding more size extensions.

MTD: The emergence of electric vehicles (EVs) presents new opportunities for tire manufacturers. Does your company see opportunity in providing tires for EVs?

Phang: On a global basis, this is something we have been (working on) for more than a decade. In the Asian market, we have launched a lot of EV products. We have done some development in Europe. In the U.S., it will come. It’s just a matter of time. We have already started this journey. It’s a necessity for all tire manufacturers as the market changes. Phang: I would say participating in emerging markets. There are a lot of emerging segments. All-weather is a growing segment... (and) the growth of the R/T light truck tire segment.

We are committed to the U.S. market. The building of our manufacturing facility in the U.S. is a statement of our commitment to the American market. The factory will not be able to provide substantial volume yet, but it will surely grow.

You can rest assured that the products that are going to come out of the factory will be very relevant to the American market.

This is an integrated facility with a research center inside the factory, where every day, David and his team are listening and reacting to (customers’) needs to make sure our products in America will continue to be relevant to this market.

MTD: Can you see bringing a tire that has been specifically designed for EVs to the U.S. market? MTD: Is Giti’s business in the U.S. where you anticipated it would be?

Poling: We’re certainly looking at that. We have a global plan for EV tires. We’re working with OEMs on some of their EVs. So we certainly see what’s required and how we can take advantage of that with lines that are similar to our current products, but are specific to the high-load, hightorque requirements of those vehicles. We need to address the needs of those cars and how (their owners) drive and see if we can create a better solution than the OE tire — just like we do today with normal vehicles.

MTD: You mentioned seeking OE fitments on EVs. Can

you discuss your general OE strategy in North America? Phang: I would say that we are where we want to be. We have reinvented ourselves. Our presence in America over the last decade has been redefined. We have manufacturing. We have R&D. We are very happy to have laid the foundation. And this will enable us to service our U.S. customers and the North American market.

Poling: We are uniquely positioned to (serve) the North American market. Having been in the industry for 35 years, I can tell you we are very unique. We design everything internally. We do our own tread patterns and our own sidewall designs. And everything we design for this market is designed for manufacturing. It’s seamless and makes us more responsive to market forces, so we can deliver products that meet (the market’s) expectations.

Bites

Toyo plant opens

Toyo Tire Corp.’s consumer tire plant in Serbia has opened. The factory will provide tires to the U.S. market, as well as Europe. Announced in 2019, the 150-acre facility is expected to reach its full capacity of five million tires per year during the second half of 2023, according to Toyo officials.

TireHub adds locations

TireHub LLC opened a number of new distribution centers, all in new markets, during the fourth quarter of 2022. The new centers are located in Shreveport, La.; Beltsville, Md.; Greenville, S.C.; Tulsa, Okla., Grand Rapids, Mich. and Spokane, Wash.

VIP Tires grows in Vermont

A fifth VIP Tires & Service store has opened in Vermont. The company renovated a former car dealership in Bennington, Vt., and added four new bay doors, plus a new shop floor, roof, parking lot, restrooms and landscaping. VIP now has 67 locations throughout the Northeast.

Bridgestone promotes Hoeft

Bridgestone Americas Inc. has named Steve Hoeft president of its commercial truck group. He replaces Chris Ripani, who had led the company’s commercial business since 2020. A five-year Bridgestone veteran, Hoeft most recently served as chief operations officer for the firm’s commercial truck group.

Sentury hires Klekamp

Sentury Tire USA has named David Klekamp its technical tire director. A 36year tire industry veteran, Klekamp will be involved in developing Sentury’s product strategy in the United States, among other functions. He’s held senior positions with several tire manufacturers over the years.

Sheehey joins Ralson

Commercial truck tire market veteran Brian Sheehey is the new senior vice president of Ralson Tires North America. He most recently served as vice president of marketing, North America, for Yokohama Off-Highway Tires America Inc. Ralson Tires recently made its North American debut.

2023 opens with price hikes

The next wave of tire price increases has begun, as tiremakers announced new hikes for the start of 2023.

Michelin North America Inc. increased prices by as much as 9% on Jan. 1 across its brands on select passenger and light truck tires, plus commercial on-road and mining tires and service offerings. The increase applied to orders in the U.S. and Canada.

Bridgestone Americas Inc. didn’t specify the amount of its latest price increase, which applied to passenger and light truck tires sold in the U.S. and Canada. The increase, effective Jan. 1, applied to Bridgestone, Firestone and Fuzion brand products.

Pirelli Tire North America Inc.’s next price increase goes into effect on Jan. 15. Prices will go up by as much as 10% on passenger and light truck tires and the exact amount will depend on tire line and size. Pirelli officials attributed the increase to “changing market conditions.”

Industry needs more than 600,000 techs

Fewer students completed automotive post-secondary education programs in 2021, thus widening the gap of technicians needed to work in tire dealerships and automotive service businesses across the U.S.

With 11.8% fewer automotive program graduates in 2021 — along with smaller drops of graduates in diesel and collision repair programs- by 2026 the disparity will total nearly 1 million qualified workers, according to The TechForce Foundation.

The numbers come from the foundation’s 2022 Transportation Technician Supply & Demand Report.

The worsening technician supply picture — with combined completions dropping from 48,208 in 2020 to 44,052 in 2021 — overshadows a strong year-over-year rebound in technician employment in the automotive (+4.2%) and diesel (+6.5%) repair segments.

TechForce estimates that demand for new entrant automotive/diesel/collision repair technicians – for new positions, replacements for occupational separations and unfilled positions from prior years — will reach 232,000 in 2022 and total more than 900,000 through 2026.

“This year’s report underscores not only the challenges we face in attracting, training and retaining technicians but also the boundless opportunities for talented young people to build successful, rewarding careers in one of the world’s most dynamic and technology-intensive industries,” said TechForce Foundation CEO Jennifer Maher. “The solution to this crisis lies in industry, non-profit, education and government partners working together to build awareness, curiosity and interest in these careers among our youth.”

Combined with a need for more than 600,000 automotive technicians by 2026, the diesel and collision repair industries are in need of help, too. Combined, the three categories will be short by more than 900,000 technicians by 2026, the TechForce Foundation says.

Photo: TechForce Foundation

When Confidence in the Rain Matters.

A little rain won’t delay your customers’ arrival when they switch to Bridgestone WeatherPeak tires. Help them stay in control with enhanced wet performance for better acceleration and grip on the road. A dependable tire matters. Your customers’ confidence in every turn, every season—that’s what really matters.

Bites

GRI names Connor director

Global Rubber Industries Pvt. Ltd. (GRI) has named Michael Connor as director of sales for its United States operations. He will oversee GRI’s sales, marketing, operations and customer service efforts in North America, covering its material handling, agriculture and construction tire portfolios.

Atturo offers racing rewards

Atturo Tire Corp. has introduced a motorsports contingency program to expand Atturo’s support to racing teams in the offroading community. The program will feature payouts of up to $2,500 for the premier off-road series such as SCORE, Best in The Desert and Ultra4.

Blackhawk sponsors MMA

The Blackhawk tire brand has been named a sponsor of Bellator MMA, a global mixed martial arts organization. Blackhawk branding will be featured on live event signage and Bellator social media posts.

Hercules had big year in 2022

American Tire Distributors Inc. (ATD) grew its Hercules dealer network by 300 customers in 2022, adding to more than 4,000 retail locations throughout the United States and Canada.

“The addition of these new dealers alone will enable us to potentially add over 100,000 units in 2023,” says Josh Simpson, Hercules’ president.

ATD also significantly expanded its product offerings during 2022. In addition to adding 300 customers to its HerThe past 12 months saw ATD’s cules dealer network, American Tire DistribuHercules and Ironman brands achieve double-digit unit sales tors Inc. rolled out a number of Hercules and Ironman brand tires during 2022. This includes the HerculesTIS TT1 light truck tire. gains, with Ironman experiencing Photo: MTD “a little higher uptick in sales.”

And ATD made several enhancements to its dealer programs during the year. “In 2022, we enhanced our Hercules University — powered by Spark — training program to offer ASE test prep and leadership training for our Diamond and Platinum dealers at no charge, in addition to offering access to ATD’s single supplier auto replenishment tool at no cost” to all Hercules Power Program members.