Modern Tire Dealer - June 2018

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DEPARTMENTS 4 Editorial Eight years, 101 editorials: Reviewing my point of view leads to perspective

The Industry’s Leading Publication June 2018, Volume 99, Number 6

F E AT U R E S 30 Preventive maintenance

creates customer loyalty

6 moderntiredealer.com

Plaza Tire Service recommends flushes and alignments

News and navigation tools for MTD’s website

8 News/Views Dealer Tire invests in Simple Tire: These two companies want to keep innovating

25 On the Rise Brandon Johnson, Eagle Tire Pros, Jacksboro, Tenn.

26 Your Marketplace Delayed tax refunds, weather issues are behind us as mix trends begin to improve

COMMERCIAL TIRE DEALERTM 33 Northwest Tire invests in commercial tires for the future

28 Numbers that Count Relevant statistics from an industry in constant motion

58 Counter Intelligence ZAT Method revisited: How to cultivate critical customer feedback

60 European Notebook Are all-season tires the solution to the summer-winter situation in the UK?

62 Business Insight Do, delegate, delay or dump: Learning how to spend your time efficiently

Focus on Industry/Dealers 64 Belle Tire: 100 stores is ‘the tip of the iceberg’ Dealer has all hands on deck in Indiana

Customers demand winter traction and 16-ply tires

tire market 36 Truck If you thought demand was high last year… got to pay to play’ 41 ‘You’ve Tips for selling trailer tires and towing safety to consumers

Viable 46 Commercially News and products for commercial tire dealers

65 Gearing up for the 4th industrial revolution How will robotics, virtual reality and AI affect our industry?

66 225 members, 1,000 locations in all 50 states ITDG reveals big five-year goals at annual meeting

67 On the Road of Change BTS keeps its retail customers on top of the trends

68 ‘It’s critical in the market’ Michelin campaigns for wet traction testing on worn tires

of fresh air 52 ATire breath inflation systems will keep farmers in their seats

56 Tire pressure management: The next step

70 Big O Tires aims for $800 million in sales in 2018

How TPMS and ATIS technologies meet fleet needs

New website will have online sales capability

72 TPMS 2007-2014 Mazda3 and Mazda2

78 Products

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82 Ad index 83 Classified ON THE COVER: ©GETTYIMAGES.COM/VITPHO

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

46 33 3

Editorial

Eight years, 101 editorials REVIEWING MY POINT OF VIEW LEADS TO PERSPECTIVE By

Bob Ulrich

I

t takes a little over eight years to write 100 editorials for a monthly magazine. I reflected on my first 100 in July 2009, right in the middle of the Great Recession. That was editorial No. 101.

Now it’s time to look back on my second 100 editorials, which was postponed a month because of a marriage. No, not the royal marriage of Prince Harry and Meghan Markle — sorry, the Duke and Duchess of Sussex — but the surprise wedding of Goodyear Tire & Rubber Co. and Bridgestone Americas Inc. For better or worse, the two Tier 1 companies merged their wholesale divisions into TireHub LLC. They are in the process of making sure the logistics of such a potentially grand and thought-provoking partnership (see Editorial No. 201) are handled to their mutual satisfaction.

You will be quick to note that the past issues on which I commented have not gone away.

Editorial No. 102 (August 2009): Against my objections, the International Trade Commission (ITC) and the Obama administration were getting ready to impose hefty countervailing and anti-dumping duties on consumer imports from China.

Over the next three years, Chinese imports dropped dramatically. Overall imports did not, however, as low-cost radials from other low-cost countries filled the void left by not only the decrease in Chinese imports but also the decrease in the number of low-end radials produced by domestic tire manufacturers.

Still, the tariffs had an effect; they led to an increase in consumer tire pricing (see Editorial No. 136, November 2012).

Those tariffs ended in September 2012. Three years later the ITC decided China had not learned its lesson, and the Department of Transportation (DOC) once again implemented high tariffs in mid-2015. Fortunately, prices dropped for the year thanks to the following: low raw material costs; continued subsidies from the Chinese government; desperate Chinese manufacturers looking for cash flow; and greater supply than demand.

Pricing eventually caught up with the tariffs. In 2017 the average cost of a consumer replacement tire was $128, higher than the $122 average in 2015, but still lower than the $135.27 average in 2012.

It looks like tariffs on Chinese imports are a part of governmental routine, and as such are not going away. Here’s some good news, though: Pricing should drop this year, thanks to the DOC’s decision to drastically lower the tariffs following a regular review.

Editorial No. 122 (July 2011): I believed that a new tire labeling standard was for all intents and purposes a done deal when

the National Highway Traffic Safety Administration (NHTSA) decided to revamp the Uniform Tire Quality Grading system by replacing the temperature resistance grade with a rolling resistance grade against the industry’s objections. All that was left was to hammer out the details. That was eight years ago.

Roy Littlefield IV, the Tire Industry Association’s director of government affairs, says there remains no legislative update on tire labeling. “At this point, it will be done through regulation, and things are moving slow at NHTSA without an administrator appointed yet.”

The exact same comments apply to tire registration, which became law in 2015 (see Editorial No. 169, August 2015).

Editorial No. 164 (March 2015): Was Goodyear selling tires online a game changer? I answered that question in Editorial No. 195 late last year: No. Editorial No. 172 (November 2015): Mike and Charlene Herchick of Herchick’s Tire Service in Macedonia, Ohio, said the pricing advantage held by large retailers such as Discount Tire, Walmart and Conrad’s Tire Express & Total Car Care was putting them out of business.

At one time they sold an average of 20 to 40 tires a day. During the winter months it could be up to 70 a day.

But when retailers with greater buying power moved in, the numbers dwindled. When they reached single digits, Mike feared the worst. “I’m at the wrong place at the wrong time now,” he said in 2015. “Thirty years ago, I was at the right place.”

His reputation for honesty and good customer service had kept him afloat even when the town acquired one-third of his property through eminent domain. It was not enough anymore.

“It was depressing to think that my business might not be worth anything,” he told me recently. “I was ready to close the doors for good.”

When a local dealer, City Tire Pros, wanted to expand into Macedonia, Mike found out he was wrong; the mom-and-pop tire dealership really was worth something. Over a two-year span he and his wife sold the business, then the property.

“It was a blessing they showed up,” he said.

And I understand the location, under the direction of City Tire Pros, is doing well, too.

‘IT WAS DEPRESSING TO THINK THAT MY BUSINESS MIGHT NOT BE WORTH ANYTHING.’

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As for a preview of what to expect for Editorial No. 301 (assuming I make it that far), I’m sure I will have a lot of things to say about the effect of TireHub on our industry. ■ If you have any questions or comments, please email me at bob.ulrich@bobit.com.

MTD June 2018

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For what drives you.

ModernTireDealer.com DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER

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

Belle Tire Distributors Inc., based in Allen Park, Mich., recently opened its 100th location. President Don Barnes III says the company is looking to move into bigger markets.

PUBLISHER Greg Smith, ext. 2212 Greg.Smith@bobit.com

EDITORIAL Editor: Robert J. Ulrich, ext. 2211 Bob.Ulrich@bobit.com

Managing Editor: Lori L. Mavrigian, ext. 2216 Lori.Mavrigian@bobit.com

Senior Editor & Digital Projects Editor: Joy Kopcha, ext. 2215

Joint ventures change tire landscape New partnerships and buyouts last month dramatically changed the landscape of U.S. tire distribution, and preceded the news that U.S. AutoForce acquired Tire’s Warehouse Inc. the first of June (see page 10). Top news in May on our website, www.moderntiredealer.com, centered around companies buying up other companies, Amazon picking Sears for the installation of tires sold on its website, new tire stores and financial results. Here are our top 10.

1. Dealer Tire makes a ‘significant investment’ in Simple Tire 2. Monro acquires Free Service Tire Co. 3. Amazon picks its partner for tire installation – Sears 4. Cooper’s 1Q 2018 net income drops 74% 5. DOC error lowers tariffs on Chinese PLT tires again 6. Bridgestone’s TJ Higgins: ‘We need wholesalers to continue to work with us and support our brands’ 7. How ATD is planning to ‘offset the potential impact of Goodyear’s actions’ 8. Belle Tire: 100 stores is ‘tip of the iceberg’ 9. Tire sales were down at Monro in fiscal 2018 10. Michelin creates a road map for the next 30 years of tires

Joy.Kopcha@bobit.com

Senior Editor: Ann Neal, ext. 2218 Ann.Neal@bobit.com

PRODUCTION Art Director: Vince Taroc, (310) 533-2547 Vincent.Taroc@bobit.com

Production Manager: Karen Runion, ext. 2210 Karen.Runion@bobit.com

SALES South and Texas: Greg Smith Greg.Smith@bobit.com (330) 899-2200, ext. 2212

Midwest: Bob Marinez Bob.Marinez@bobit.com (330) 899-2200, ext. 2217

West Coast: Marianne Dyal /The Dyal Company Marianne.Dyal@bobit.com (760) 451-9216

Automotive Aftermarket: Dan Thornton

MTD digital edition You can view MTD’s monthly magazine at, http://mtd.epubxp.com/t/22225 or use your smartphone’s QR Code reader (right)

djtinc@gmail.com (734) 676-9135, mobile (313) 410-0945

Classified Sales: Bob Marinez Bob.Marinez@bobit.com (330) 899-2200, ext. 2217

Reprint Sales: Karen Runion Karen.Runion@bobit.com

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MODERN TIRE DEALER (ISSN 00268496) (CDN IPM #40013413) (USPS #369-170) is published monthly by Bobit Business Media, 3520 Challenger St., Torrance, California 90503-1640. Periodicals postage paid at Torrance, CA 90503-9998 and additional mailing offices. POSTMASTER: Send address changes to MODERN TIRE DEALER, P.O. Box 3312, Northbrook, IL 60065-3312. Please allow 6 to 8 weeks for address changes to take effect. Subscriptions in the U.S. and its possessions, $65; Canadian, $99; Int’l surface mail, $99; Int’l airmail, $198. Single copies, $10, except the January Facts Issue, $30. Address all subscription correspondence to MODERN TIRE DEALER, P.O. Box 3312, Northbrook, IL 60065-3312. Please allow 6 to 8 weeks to receive your first issue. Please address Editorial and Advertising correspondence to MODERN TIRE DEALER, 3515 Massillon Road, Suite 350, Uniontown, OH 44685-6217. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. For your information: We sometimes make our subscriber information (i.e. fax, e-mail or mailing address) available to carefully screened organizations whose products and services may be of interest to you. If you prefer not to have your information made available, please write MODERN TIRE DEALER, P.O. Box 3312, Northbrook, IL 60065-3312.

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MTD June 2018

News/Views

Dealer Tire invests in Simple Tire THESE TWO COMPANIES WANT TO KEEP INNOVATING

T

wo companies that have disrupted the tire industry in their own ways are partnering. Dealer Tire LLC is making “a significant investment” in Simple Tire LLC. But exactly what their collaboration will look like remains unknown. Financial terms of the deal were not disclosed.

Dealer Tire is the Cleveland-based company that since 1999 has served as a national tire dealer and distributor to car dealerships from a network of 39 distribution centers. It was born from the Mueller family’s retail tire business, which was founded in 1918.

Simple Tire is the six-year-old business from Philadelphia that links existing tire dealers into a nationwide e-commerce platform. The tires consumers buy online are sourced from one of 3,000 warehouses of tire distributors or installers across the country. The list of installers includes both small shops and some of the biggest retailers in the country: Pep Boys — Manny, Moe & Jack, Monro Muffler Brake and Mavis Discount Tire.

While Simple Tire is focused wholly on online sales — last year the company said it expected to exceed $500 million in sales in 2018 — Dealer Tire has its own e-commerce business on www.RightTurn. com with more than 8,500 registered dealers.

“The business of selling tires continues to evolve,” says Scott Mueller, partner and CEO of Dealer Tire. “We’ve built our business by consistently driving innovation in the tire distribution business and by providing automotive dealers with the tools and services they need to be successful selling tires. While our core business remains focused on supporting the dealer channel and our OEM customers, our investment in Simple Tire is part of our effort to continue bringing innovation and technology to the tire industry.”

Brothers Andy and Josh Chalofsky developed the concept for Simple Tire while working in their family’s brick and mortar tire store, along with their business partner Kenny Pratt. All three

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founders will continue to lead the company. “Dealer Tire has built its business by developing an innovative position in the tire industry focusing on the OEM dealer channel,” says Simple Tire CEO Andy Chalofsky. “Likewise, we’ve built our business by driving innovation in the growing e-commerce channel. We’re

‘WE ARE CONTINUING TO DEVELOP OUR APPROACH COLLABORATIVELY WITH OUR PARTNERS.’ — Dealer Tire confident this investment will help both companies, our customers and our suppliers continue to grow and evolve.”

“We’ve developed strong core expertise in logistics, technology, merchandising, marketing and more,” says Mueller. “We will leverage our expertise and Simple Tire’s capabilities to create new opportunities for both companies. And as we move into our second century in the tire business, investments in companies like Simple Tire and Tyrata ensure that we remain an innovative leader in the tire industry’s ever-changing landscape.”

In February Dealer Tire became a “leading” investor in Tyrata Inc., a company that develops sensors and systems that monitor tread wear in real time.

Dealer Tire was one of several investors who pumped $4.5 million into the sensor company.

Dealer Tire’s business has been singularly focused on original equipment

manufacturers and franchised automotive dealerships. On its website Dealer Tire says it is “revolutionizing the way people buy tires and care for their cars.”

When Modern Tire Dealer asked if Dealer Tire will ship, or consider shipping, tires from its warehouses to Simple Tire’s network of independent tire dealers, here’s what the company had to say: “We’re very early on in the process and are continuing to develop our approach collaboratively with our partners.”

As for its relationship with Goodyear Tire & Rubber Co. and Bridgestone Americas Inc. following the creation of TireHub LLC, Jill Marcotte, partner and chief supply chain officer for Dealer Tire, says, “We enjoy an exceptional working relationship with Bridgestone and Goodyear. They have assured us that they value our partnership and that they will continue to fully support our business model. It’s an exciting time to be in the tire business, and we’re looking forward to continuing to adapt and evolve in an ever-changing landscape.”

Dealer Tire buys Goodyear, Dunlop and Kelly from Goodyear, and Bridgestone and Firestone from Bridgestone. It also offers Michelin, BFGoodrich, Uniroyal, Continental, General, Hankook, Kumho, Nexen, Pirelli, Toyo and Yokohama tires to car dealerships. Only Kelly and Uniroyal are non-OE brands.

The company says it serves the following vehicle brands: Audi, Hyundai, Infiniti, Jaguar, Kia, Land Rover, Lexus, Mazda, Mercedes-Benz, Nissan, RollsRoyce Motor Cars, Toyota, Volkswagen and Volvo. Notably absent is Chrysler/ Fiat (FCA), which was listed as a preferred vendor last year. – Joy Kopcha ■ MTD June 2018

EXPERIENCED DRIVER DEPICTED

WHAT ARE YOU BUIL DING F OR?

B U I LT T H R O U G H E X P E R I E N C E … E AR N E D O N T H E T R AI L BFGO ODRICH.COM/KM3

News/Views

Bites Ford honors Pirelli Pirelli & Cie SpA has received Ford Motor Co.’s Gold World Excellence Award for its performance as a global supplier. Only 88 companies were selected as finalists from thousands of suppliers. Pirelli was also a finalist globally for Ford’s Brand Pillar Award.

Network funds visit Members of the Automotive Distribution Network donated $2,500 to help Dream Factory of Memphis provide a trip to Disney’s Magic Kingdom for a critically ill child.

Michelin wins supplier honors Vulcan Materials Co., a producer of aggregates and other construction materials, has honored Michelin North America Inc. with a gold-level supplier award for offroad tires and a platinum-level award for on-road tires.

Counterfeit labels found Counterfeit lift inspection labels bearing the Automotive Lift Institute Inc.’s (ALI) Certified Lift Inspector mark have been found in New York City and Long Island. ALI says the counterfeit labels go back to at least 2016.

Record attendance expected Organizers of the 16th China International Tire Expo (CITEXPO) expect more than 15,000 industry professionals, a record, to be at the Shanghai World Expo Exhibition & Convention Centre Aug. 20-22, 2018.

ATD names general counsel American Tire Distributors Inc. (ATD) has named Gail Sharps Myers as general counsel, chief compliance officer and secretary.

She succeeds J. Michael Gaither, who is retiring.

U.S. AutoForce buys Tire’s Warehouse

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he landscape for U.S. tire distribution continues to change, as two more companies are combining forces. U.S. AutoForce (USAF) has acquired Tire’s Warehouse Inc. (TWI) as of June 1, 2018.

U.S. AutoForce is a division of U.S. Venture Inc., and the company says as part of a “unique strategy,” it will retain the Tire’s Warehouse name, company structure, employees and ways of business for the foreseeable future.

“We are excited by the opportunity to combine the TWI and USAF families,” says TWI’s new distribution center will Pat Hietpas, president of U.S. AutoForce. open in Fresno, Calif., in July.

“Their expansion up and down the West Coast is impressive, and their reputation for outstanding customer service and strong company culture falls directly in line with both our business strategy and values.

We’re confident this venture will give our customers an even bigger competitive edge.”

TWI was established in 1969 by the Helmle family. The company announced it will open a new distribution center in Fresno, Calif., in July. The 122,000-square-foot facility will bridge the gap between TWI’s Southern and Northern California branches. It will be the company’s eighth warehouse, three of which have opened within the last three years, and brings its total distribution center square footage to over 700,000.

The new Fresno distribution center will service California’s Central Valley, which is TWI’s largest geographical service region to date. It will carry a full lineup of brands and products for consumer, commercial, industrial, farm and trailer applications.

“After more than 50 years of business and continued growth, Tire’s Warehouse is extremely proud of the level of service our customers have come to expect from us,” says Dan King, president of TWI. “This acquisition will give us access to new resources, brands and channels and our valued dealer network will only experience the positive effects of this transition. We plan to not only maintain those expectations, but build on them further.”

U.S. Venture also has remained family-owned since its inception in 1951, and the company is one of the largest, privately held companies in Wisconsin. U.S. Venture distributes petroleum and renewable energy products, lubricants, and tires and parts for the automotive aftermarket.

The merger is the latest twist in tire distribution in the U.S. this year. First it was the joint venture between Michelin North America Inc. and Sumitomo Corporation of Americas.

Next came TireHub LLC, the combination of distribution systems for Goodyear Tire & Rubber Co. and Bridgestone Americas Inc.

TBC adds 8 NTB and Tire Kingdom stores, plans 20 more

Truck tires are recalled Continental Tire the Americas LLC is recalling some Conti Hybrid HS3 tires in size 11R22.5 load range G because the cords may be visible through the innerliner.

Nexen has a new website Nexen Tire America Inc. has launched a new website. Features include a redesigned dealer locator; an improved tire finder; and interactive product information for consumers.

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S

ince the start of 2018, TBC Corp. has opened eight NTB Tire and Service Centers and Tire Kingdom stores. The company plans to open another 20 locations by April 1, 2019, in both new and existing markets.

“The momentum that we built throughout the past year will continue during 2018 with the continued growth of our Tire Kingdom and NTB brands,” says Erik Olsen, CEO and president of

TBC Corp. The expansion includes new Tire Kingdom stores in Florida and NTB locations in Tennessee, Pennsylvania, Rhode Island and Georgia.

In addition to the NTB and Tire Kingdom retail brands, TBC operates Merchant’s Tire & Auto Service Centers, Big O Tires and Midas. Collectively, TBC has more than 3,200 franchised and company-owned tire and automotive service centers.

MTD June 2018

A LONG WAY

TOGETHER

Deep tread with sturdy lugs Longer tire life High crack resistance

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News/Views

Amazon partners with Sears for tire installation

Bites Tire Rack has a new app The new Tire Rack Garage app offers reminders to check tire pressure, including seasonal adjustments, plus tire rotation, tread depth, balance and alignment.

KYB is honored KYB Americas Corp. has received the “sales representation support vendor of the year” award from the Automotive Parts Services Group.

TIA has a new video The Tire Industry Association (TIA) released a new video during National Tire Safety Week. ‘Tire Safety Starts With Inflation’ is the latest entry in a series of consumer education videos.

Corvettes are top prize The Aftermarket Auto Parts Alliance presented car keys to the three grand prize winners of the Kentucky Horsepower Corvette Giveaway sweepstakes in May. The three Stingray Corvettes were provided by Auto Value and Bumper to Bumper stores.

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mazon.com has picked the company that will be the first to offer tire installation and balancing services for consumers who buy any tire on its website. It’s Sears Auto Centers.

Sears Holdings Corp. made the announcement May 9. Sears says it will install any brand of tires purchased on Amazon. The service will begin in eight metropolitan markets and will be available through 47 Sears Auto Centers in those markets: Atlanta, Chicago, Dallas, Los Angeles, Miami, New York, San Francisco and Washington, D.C. After the initial launch, Sears says it will quickly expand the service to Amazon customers through all of its 400-plus Sears Auto Center locations in the U.S. The partnership with Amazon will bring about another benefit for Sears. The

Interstate Batteries hosts golf event for military men and women

Tire recall service is offered Software provider Tiremetrix LLC provided tire dealers and auto service providers with a free web-based database to check for tire recalls and tire aging issues during National Tire Safety Week, May 21-28, 2018.

Bauer Built helps 6 scholars Bauer Built Inc. awarded six scholarships to high school seniors in memory of its founders, G. F. “Sam” and Ethel V. Bauer.

Each of the winners will receive $1,500.

Ware joins TCG Tire industry veteran Bruce Ware has come out of retirement to join Tire Consultants Group LLC (TCG), where he will oversee sales, marketing and merchandising initiatives. His experience includes leadership roles at TBC Corp.’s Big O Tires, Falken Tire Corp. and Nitto Tire U.S.A. Corp.

The Group golfs for toys Members and vendor partners of the Automotive Parts Services Group (The Group) helped raise over $350,000 for the U.S. Marine Corps Reserve Toys for Tots campaign at The Group Toys for Tots Golf Tournament in Grapevine, Texas.

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company’s DieHard all-season passenger tires will be sold on Amazon.com.

When the system is rolled out, Amazon will offer consumers a “ship-to-store” option that’s integrated into its checkout process. Customers will select their tires and also choose their preferred Sears Auto Center location and preferred date and time for installation. Sears will follow up and confirm the appointment time.

The Sears-Amazon partnership began in July 2017 when the brick-and-mortar retailer began selling its Kenmore appliances on the world’s largest shopping site.

In December, DieHard-brand products such as jump starters and battery chargers were added to Amazon.com. DieHard Advanced Gold AGM automotive batteries were added in February 2018, and now DieHard all-season passenger tires can be purchased on Amazon.com.

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nterstate Batteries Inc. treated more than 200 active duty, retired and reserve military personnel to a pro-am day of golf at Cedar Crest Golf Club in Dallas, Texas, on May 6.

The Operation Appreciation golf event kicked off the weeklong AT&T Byron Nelson professional golf tournament hosted by the Salesmanship Club of Dallas, a 600-member civic organization.

Interstate Batteries sponsored one playing spot and provided lunch for every military player as part of Operation Appreciation. The company’s golf team was comprised of three veterans who currently work at Interstate (From the left): Chris Montoya, manager of InterBatteries and one former Navy state Batteries’ Values Mission*Hiring Initiative for military veterans; Stacey Hargrave, an Interstate Seal. Interstate Batteries currently Batteries volunteer; and Gus Cabarcas, a volunteer employs around 50 military vet- from Hope for the Warriors. erans at its home office alone.

On April 13, Interstate Batteries hosted the first of many open houses as part of its new Values Mission*Hiring Initiative. Nearly 50 veterans attended and met with Interstate Batteries recruiters about job openings. The Values Mission*Hiring Initiative is managed by Chris Montoya.

MTD June 2018

News/Views

Bites Thomas leads Carlstar Carlstar Group LLC has named Jacob Thomas as chief executive officer and board member, effective May 8, 2018. He succeeds John Salvatore, who has retired.

John King is keynote John King, CNN’s chief national correspondent and anchor of Inside Politics, will share his perspectives on the mid-term elections with attendees at the 2018 Automotive Aftermarket Products Expo (AAPEX).

Mavis adds 6 Dekalb Tire stores

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he Mavis Tire Supply Corp. footprint is getting larger. On the heels of its purchase of five Hill Tire Centers in South Carolina, Mavis has picked up six Dekalb Tire & Automotive Service locations in Georgia.

The Dekalb Tire purchase gives Mavis 74 stores in Georgia. Earlier purchases include Kauffman Tire Inc.’s 69 retail stores in Georgia and Florida. In March, Mavis purchased Sun Tire and Automo-

GM honors 6 tire makers Six tire manufacturers are among the 125 companies honored by General Motors Co. as a supplier of the year. The tire makers are Bridgestone Corp., Continental Tire the Americas LLC, Goodyear Tire & Rubber Co., Hankook Tire America Corp., Maxxis International and Michelin North America Inc.

Auto Pride brand expands The Automotive Distribution Network has extended the Auto Pride brand with the signings of NFADA Warehouse based in Williamsville, N.Y., and Parts Pro Automotive Warehouse in Del Rey Beach, Fla.

Kumho gains fitment Kumho Tire U.S.A. Inc. has been selected by the Volkswagen Group of America as an original equipment supplier for the new 2018 Atlas SUV. The SUV will be available with the Kumho Crugen KL33 in size 245/60R18 in the North American market

Michael Cardone is named to the vendor hall of fame

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ichael Cardone Jr., co-founder of Cardone Industries, has been inducted into the Federated Auto Parts Vendor Hall of Fame.

The Hall of Fame recognizes one individual each year who demonstrates dedication to excellence, helping to make a difference for Federated and its members. This year’s induction took place during the recent Automotive Parts Services Group meeting in Grapevine, Texas.

Michael Cardone III accepted the award on (Left to right): Rusty Bishop, CEO, Federated Auto Parts; Michael Carbehalf of his father. done III, executive chairman, Cardone In 1970, Cardone Jr. co-founded Cardone Industries; and Bo Fisher, chairman, Industries Inc. with his father. Since 2014, Federated Auto Parts.

Cardone has served as chief strategy officer for the company and is a member of the board of directors. Before assuming his current role, Cardone served as chairman, CEO, president and COO of Cardone Industries Inc.

Cooper spells out its strategy to boost profits to investors

Kershaw is vice president After more than four months as associate vice president, Doug Kershaw is officially vice president of BKT USA Inc. His goals include further establishing the BKT brand in the off-the-road, original equipment, agriculture and construction markets.

Ford expands Omnicraft Ford Motor Co. has introduced master cylinders and fuel injectors to its Omnicraft brand of replacement parts for non-Ford/ Lincoln vehicles.

Denso adds training Denso Products and Services Americas Inc. has added advanced air conditioning training to its instructor-led automotive repair courses.

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tive Services, an 11-store chain based in Jacksonville, Fla. In February, Mavis announced it would merge with Express Oil Change LLC, which does business as Express Oil Change & Tire Engineers.

The company will be led by Mavis’ current co-chief executive officers, David and Stephen Sorbaro, and Express Oil Change’s chief executive officer, Ricky Brooks, who will be executive chairman.

C

ooper Tire & Rubber Co.’s strategies for boosting profitability include new consumer tire products and sales of Cooper-branded truck tires.

The company outlined its strategies for generating operating profit of 10% to 14% and annual volume growth in the low- to-mid-single digits at its “Investor Day” event in New York City on May 11, 2018.

The event followed Cooper’s first quarter 2018 earnings, which fell 74% year over year. The company reported net income of $8 million on net sales of $601 million.

“Our brand strength and attractive value proposition represent a solid foundation to

build on with consumers, which is important as we move into additional growth channels,” said Brad Hughes, president and chief executive officer.

“Cooper’s emerging OE business will drive enhanced product technology and keep us current with emerging trends such as electric and autonomous vehicles that we believe will be positive for the replacement tire market going forward. Finally, recent consolidation in distribution within the industry has created disruption and is pressuring long-standing relationships.

Disruption creates opportunities, and Cooper is taking immediate action to benefit.”

MTD June 2018

News/Views

Bites GRI plants trees Global Rubber Industries Pvt. Ltd. (GRI) planted more than 50 trees as part of the grand opening of its specialty tire manufacturing facility in Sri Lanka. GRI officially opened the $40 million predominantly radial agricultural tire plant on Jan. 25, 2018.

Point S adds 2 dealers The Point S expansion in Canada continues, with two stores in Alberta joining the group of independent tire dealers. They are Action Tire in Bow Island and Tech N Tire in Whitecourt.

Yokohama has OTR tire guide Yokohama Tire Corp. has created an 82-page off-the-road (OTR) tire sales and reference guide with key OTR tire and maintenance guidelines, as well as information on its OTR products.

Monro acquires Free Service Tire

M

onro Inc. has acquired 99-yearold Free Service Tire Co., adding an expected $47 million in annual sales to its balance sheet.

The acquisition includes the Johnson City, Tenn.-based tire dealer’s 12 retail and commercial stores, four wholesale distribution centers and one retread facility. And it extends Monro’s footprint in Tennessee, North Carolina and Virginia, adding to the company’s 130-plus locations in those states.

Monro says it will continue to operate all Free Service Tire locations and retain store-level, wholesale and retread associates.

“This acquisition expands our footprint in the South, while providing Monro with an even stronger platform for further growth

Sullivan Tire’s Jon Dickerman is a world class technician

GM extends warranties General Motors Co. (GM) has extended the warranties of more than 281,000 Genuine GM and ACDelco replacement parts to 24 months and unlimited miles.

Maxxis sponsors contest Maxxis International is sponsoring the Future Tire category of an innovation contest open to any undergraduate or graduate student in the U.S. The company wants to encourage college students to enter the tire industry.

Promotion rewards installers Five 2019 Chevy Silverado pickup trucks and 15 cruises will be awarded in the latest installer promotion from Fisher Auto Parts.

The “Wow! Earn and Win!” promotion runs through Dec. 31, 2018.

in these markets,” says Brett Ponton, CEO and president of Monro.

Lewis Wexler Jr., president of Free Service Tire, says, “We have been approached by many companies over the years, but it wasn’t until Monro came along that we found the right fit for our customers, our employees and our company. Monro has a tradition and business model much like ours, and I am confident that Free Service Tire’s tradition of outstanding customer service will continue under Monro’s ownership.”

Monro says it expects the deal to add approximately $47 million in annualized sales, representing a sales mix of 15% service and 85% tires.

J

on Dickerman is the first employee of Sullivan Tire Co. Inc. to earn world class technician status. The recognition requires National Institute for Automotive Service Excellence (ASE) certification in 22 specialty areas of automotive diagnostics and repair.

According to the Auto Care Association, there are an estimated 879,000 technicians in the U.S., over 300,000 of which are ASE certified, and almost 2,000 of these technicians have achieved world class technician status.

Dickerman joined Sullivan Tire at age 16. His first jobs were mowing grass and sweeping floors. His father, Steve, managed the Jordan Marsh Car Care Center, which was acquired by Sullivan Jon Dickerman of Tire in the mid-1980s and is now the Braintree #23 retail location. Sullivan Tire has Dickerman’s first official job with Sullivan Tire was as a general received the ASE’s world class techniservice technician preforming oil changes and tire changeovers. cian award.

Today, Dickerman is the manager of the mobile diagnostics team, which specializes in computer diagnostics and programming. The team travels across New England to assist Sullivan Tire stores with complex jobs that may require factory scan tools or additional assistance.

Radar line expands Omni United (S) Pte. Ltd. is adding 38 SKUs to the Radar truck and bus tire line. The additional sizes give the Radar commercial truck tire line 65 SKUs. The plan is to add 24 more SKUs by the end of 2018.

Nokian reduces emissions Nokian Tyres Inc. surpassed its goal of reducing carbon dioxide emissions by 20% at its plants three years ahead of schedule.

The tire maker has stepped up its efforts by joining the Science Based Targets initiative.

16

USTMA denounces tariffs on steel and aluminum imports

O

n May 31, 2018, the Trump administration imposed tariffs on steel and aluminum imported from Canada, Mexico and the European Union. The U.S. Tire Manufacturers Association (USTMA) wasted no time responding.

“We are deeply disappointed by the

Trump administration’s decision today (May 31, 2018),” said CEO and President Anne Forristall Luke. “Already we are seeing swift retaliation and proposed countermeasures from our closest trading partners, which is harmful to America’s manufacturers, the U.S. economy and our global relationships.”

MTD June 2018

WHEEL SERVICE

DONE RIGHT

When you want the job done right, choose Ranger. Advanced engineering, breakthrough technology and the highest standards deliver shop-tested performance you can depend on. That’s why we have the confidence to offer a full 24-month parts warranty along with 12 months of on-site labor and free shipping.

That’s better than any warranty offered by any of our rivals. Choose Ranger and enjoy industry-leading performance backed by an assurance warranty that is clear, easy to understand and comes with the best support possible for your business. Call 1-800-253-2363 or visit bendpak.com/wheel-service.

BRAKE LATHES WHEEL BALANCERS

TIRE CHANGERS

WHEEL ALIGNERS

1-800-253-2363 • bendpak.com/wheel-service © 2018 BendPak Inc. Ranger Products is a registered trademark of BendPak.

News/Views

TravelCenters of America buys Ohio retread plant

Dates July 10-13 Tire Industry Association (TIA) Automotive Tire Service (ATS) Advanced Instructor Training Tour, held at a local community or technical college, Irvine, Calif.

(800) 876-8372 www.tireindustry.org

July 20-22 Georgia Tire Dealers & Retreaders Association Annual Conference, Omni Hotels & Resorts Amelia Island Plantation, Amelia Island, Fla. (770) 947-2323 www.gtdra.com

Aug. 8-10 NACE Automechanika Atlanta, Georgia World Congress Center, Atlanta, Ga. www.nace-automechanika. us.messefrankfurt.com

Aug. 21-24 Tire Industry Association (TIA) Automotive Tire Service (ATS) Advanced Instructor Training Tour, held at a local community or technical college, Denver, Colo.

(800) 876-8372 www.tireindustry.org

Sept. 11-15 Reifen International Trade Fair and Automechanika, the first combined Reifen and Automechanika Trade Show, Frankfurt am Main, Frankfurt, Germany www.automechanika.messefrankfurt.com

Sept. 13-15 Tire Dealers Association of Canada National Trade Show & Conference, Delta

by Marriott, Toronto, Canada (888) 207-9059 www.otda.com

Sept. 15-Sept. 20 American Trucking Associations Fall Meeting, Orlando World Center Marriott, Orlando, Fla. (703) 838-1700 www.trucking.org

Sept. 18-21 TIA ATS Advanced Instructor Training Tour, held at a technical school, Seattle, Wash.

(800) 876-8372 www.tireindustry.org

18

T

ravelCenters of America LLC has purchased the Ironhead Retread Center Ltd. facility in Bowling Green, Ohio. It is the first retread plant for the company, which launched TA Truck Service Commercial Tire Network two years ago.

The purchase includes the building and equipment, but not the Ironhead brand, according to Sharon Foster, senior director of commercial marketing for TravelCenters.

She says the Ironhead facility ceased operations at the end TravelCenters has purchased its first retread plant, which will be part of the Goodyear Authorized Reof 2017. tread Network. It is located in Bowling Green, Ohio.

The cost of the plant was about $2.7 million with an additional $1.9 million spent for renovations and new equipment, including a Shearography inspection system. The transaction closed at the end of May 2018.

The plant will be part of the Goodyear Authorized Retread Network, and will provide a full line of Goodyear commercial retread products, including Goodyear UniCircle retreads, to fleet customers and local industries within a 150-mile radius of Bowling Green in northwest Ohio.

TravelCenters says the 32,000-square-foot plant’s products also will be available to numerous TA Truck Service facilities, and it is on schedule to open for full production in July.

“Adding a retread center to the TA Truck Service Commercial Tire Network portfolio reconfirms our commitment to expanding the array of tires we offer to our customers,” says Skip McGary, executive vice president of commercial operations for TravelCenters. “Not only will we be producing a quality Goodyear retread product, but we will also be able to provide a complete cradle-to-grave tire management program.”

Maxam moves to boost U.S. business

M

axam Tire North America Inc. has tripled the size of its West Coast distribution center, and the company plans to launch eight new product lines in the next year.

With its growth in the U.S. market, Jimmy McDonnell, vice president of sales and marketing for Maxam, says, “we needed to address our distribution platform capabilities, starting on the West Coast.”

The warehouse is located in Los Angeles and spans approximately 120,000 square feet, and gives the company more than 300,000 square feet of distribu-

tion space in the U.S. The new facility will support and supply the complete range of Maxam products, including the Maxam Giant OTR program from 49-inch to 63-inch bead diameter and pressing capabilities for the Maxam Solid OTR program.

The warehouse is also home to the product training center for Maxam’s North American operations. Both facilities will “play a major role in supporting the continued growth and expansion at Maxam Tire,” the company says. The company also has a facility in Memphis to serve East Coast customers. ■ MTD June 2018

ALL NEW

INTRODUCING TWO NEW TIRES WITH TOTAL CONFIDENCE

All-season tire for passenger cars, minivans, and small CUVs.

All-season tire for luxury cars and luxury sports cars.

Have Total Confidence with your Continental Tire purchase.

Road Hazard 1 Continental’s Road Hazard Coverage is unique in the industry because it applies to all Continental passenger and light truck tires that are purchased as replacement, and provides a comparable replacement tire within the first 12 months 2 .

Limited Warranty 1 All Continental passenger and light truck tires are eligible for the Limited Warranty for a maximum of up to 72 months from the date of purchase. The Limited Warranty allows for free replacement within the first 12 months 2.

Customer Satisfaction Trial 1 Continental passenger and light truck tires purchased as replacement bearing the Continental name and D.O.T. serial numbers are covered up to 60 days (30 days for winter and select marketing lines). Please see Total Confidence Plan brochure for complete details.

Tread Wearout Coverage1 Coverage on select replacement products up to 90,000 miles.

Flat Tire Roadside Assistance1 Three (3) year complimentary flat change or towing up to 150 miles at no charge. Tires must be registered online at www.totalconfidence-plan.com within 45 days of purchase to qualify for Flat Tire Roadside Assistance. Coverage is valid on replacement passenger and light truck tire purchases made on or after February 1, 2015.

1 Restrictions and Limitations Apply. See complete Total Confidence Plan for complete coverage details.

2 Coverage is within the first 12 months from the date of purchase or the first 2/32nds treadwear, whichever comes first.

VISIT CONTINENTALTIRE.COM FOR COMPLETE DETAILS.

TrueContact™ Tour Tire Sizes Size

Load/ Speed

Load Range

Article Number

195/60R15 175/65R15 185/65R15 185/65R15 195/65R15 195/65R15

88T 84H 88T 88H 91T 91H

SL SL SL SL SL SL

15494610000 15570010000 15492590000 15493000000 15494630000 15494770000

205/55R16 215/55R16 205/60R16 205/60R16 215/60R16 215/60R16 225/60R16 225/60R16 205/65R16 205/65R16 215/65R16 215/65R16 225/65R16 235/65R16

91H 97H 92T 92H 95T 95H 98T 98H 95T 95H 98T 98H 100T 103T

SL XL SL SL SL SL SL SL SL SL SL SL SL SL

15494810000 15504770000 15495300000 15495480000 15496400000 15505060000 15498610000 15499270000 15495490000 15505030000 15496560000 15496980000 15500470000 15501180000

215/45R17 225/50R17 225/50R17 215/55R17 215/55R17 225/55R17 235/55R17 215/60R17 225/60R17 225/60R17 235/60R17 215/65R17 225/65R17 235/65R17

87V 94T 94H 94T 94H 97H 99H 96T 99T 99H 102T 99T 102T 104T

SL SL SL SL SL SL SL SL SL SL SL SL SL SL

15495500000 15497500000 15570040000 15495800000 15570020000 15498350000 15500930000 15496480000 15499290000 15499370000 15501000000 15497040000 15500770000 15501310000

225/50R18 225/50R18 215/55R18 235/55R18 225/60R18 235/60R18 235/60R18

95T 95H 95T 100T 100H 103T 103H

SL SL SL SL SL SL SL

15498300000 15570050000 15496390000 15500940000 15505040000 15501010000 15501170000

225/55R19 235/55R19

99H 101H

SL SL

15498380000 15500950000

PureContact™ LS Tire Sizes Size

Load/ Speed

Load Range

Article Number

195/55R16 205/55R16 205/60R16 215/60R16

87V 91V 92V 95V

SL SL SL SL

15509360000 15508060000 15508120000 15508210000

225/45R17 225/45R17 235/45R17 235/45R17 245/45R17 205/50R17 215/50R17 225/50R17 235/50R17 245/50R17 215/55R17 225/55R17

91H 91V 94H 97V 99V 93V 95V 98V 96V 99V 94V 97V

SL SL SL XL XL XL XL XL SL SL SL SL

15508230000 15508240000 15508370000 15509200000 15508810000 15508050000 15508130000 15508300000 15508440000 15508860000 15508150000 15508310000

225/40R18 245/40R18 225/45R18 235/45R18 245/45R18 235/50R18 245/50R18 235/55R18

92V 97V 91V 94V 100V 97V 100V 100V

XL XL SL SL XL SL SL SL

15509180000 15508790000 15508280000 15508400000 15508820000 15508770000 15509140000 15508780000

235/40R19 245/40R19 245/45R19 255/45R19

96V 98V 102V 100V

XL XL XL SL

15509190000 15508800000 15509350000 15509150000

245/45R20

99V

SL

15508830000

Legal notice The marks, slogans and logos appearing herein are the property of Continental Tire the Americas, LLC and/or its affiliates. ©Continental Tire the Americas, LLC 2018. All rights reserved.

All-season tire for passenger cars, minivans, and small CUVs.

TOURING PERFORMANCE

27% Longer Wear

1

Up to 13% better wet braking than Pirelli

1

2

Up to 17% better snow traction than Michelin

3

2

Quick View Indicators 1 Tuned Performance Indicators 2 Visual Alignment Indicators

UTQG Treadwear

Traction

Temperature

T

800

A

B

H&V

800

A

A

Rim Diameter

Aspect Ratio

Speed Rating

13“ - 19“

45 - 70

T, H and V

What is it?

An innovative technology of Tg-F Polymers and patented +Silane additives found in both the TrueContact™ Tour and PureContact™ LS: Tg-f polymers save money: • Improved tread wear • Improved fuel efficiency

+Silane additives deliver the driving confidence you need: • Improved wet traction • Enhanced wet braking – stops shorter

TrueContact™Tour

PureContact™ LS

TrueContact™

80K

MILE LIMITED MILEAGE WARRANTY

PureContact™

70K

60 DAY

MILE LIMITED MILEAGE WARRANTY

CUSTOMER SATISFACTION TRIAL1

*

60 DAY CUSTOMER SATISFACTION TRIAL*

Coverage is within the stated duration from the date of purchase or the first 2/32nds treadwear, whichever comes first. Restrictions and limitations apply.

1. Compared to Continental TrueContact ™ 2. Based on internal wet braking test results (low μ ) of Continental TrueContact™ Tour and Pirelli P4 Four Seasons Plus in size 205/65R16. On road results may vary.

3. Based on average internal snow traction test results of Continental TrueContact™ Tour and Michelin Defender T + H in size 205/65R16. On road results may vary.

4. Compared to Continental PureContact ™

All-season tire for luxury cars and luxury sports cars.

LUXURY SPORT PERFORMANCE

23% Longer Wear

4

10% improvement in Wet Traction

4

1

50% Reduction in Road Noise

4

Quick View Indicators

2

1 Tuned Performance Indicators 2 Visual Alignment Indicators

UTQG Treadwear

Traction

Temperature

700

A

A

Rim Diameter

Aspect Ratio

Speed Rating

16“ - 20“

40 - 60

H and V

On the Rise Brandon Johnson, 24, says he’s proud to learn from his dad, Tony Johnson, on a daily basis, including days he gets behind the wheel of his dad’s 1954 truck for a parade.

BRANDON JOHNSON CHIEF OPERATING OFFICER

EAGLE TIRE PROS • JACKSBORO, TENN. WHAT WAS YOUR FIRST JOB IN THE INDUSTRY? I started working in the industry handling our company’s marketing while still in college.

WHAT ATTRACTED YOU TO THE INDUSTRY? I’m a fourth generation tire guy. My great-grandfather retired after 20 years of building Uniroyal tires, and both my father and grandfather have been in the industry their whole lives. They joke that we are born with tires in our blood!

WHAT’S THE BIGGEST CHALLENGE YOU HAVE FACED IN YOUR CAREER? I’m not a mechanic by trade. I graduated with both undergraduate and graduate degrees in business, but there’s a world of difference in forecasting sales and trying to explain to a customer how a ball joint works.

WHO HAS HAD THE BIGGEST INFLUENCE ON YOUR CAREER? My father’s been both my inspiration and my greatest influence in the industry. He’s always fought for a business that is honest, hardworking, and hassle-free. He started Eagle Tire Pros when he was just 19.

WHAT’S YOUR BIGGEST ACCOMPLISHMENT IN THE INDUSTRY? We have taken great leaps in our marketing. We have moved forward with not only Facebook, but Twitter and Instagram, as well. This has helped us appeal to a younger market, and a new segment of customers. A year ago, we opened a brand new location that is the largest tire and automotive repair store in our local market. We were also just selected by Tire Pros to be the shoot location for their new national commercial — an honor that was given to the model Tire Pros store. I’m proud of these milestones accomplished by our team! ■

A new generation of leaders is influencing the livelihoods of today’s independent tire dealers, and Modern Tire Dealer is recognizing those who are On the Rise. Direct the young stars in your business world to www.moderntiredealer.com/ontheriseform.

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

25

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

Delayed tax refunds, weather issues are behind us as mix trends begin to improve By

John Healy

O

ur recent discussions with dealers leave of us of the view that sell-out trends in April were slightly higher when compared to levels a year ago. On average, surveyed dealers saw unit sales volumes up around 1% compared to a year ago during April. From our perspective, growth is always good; however, we were hoping for more. But it seems the start-and-stop recovery in retail demand that appears to have been the course for the industry over the last 15 months continues.

When exiting March, we were optimistic that we would see a noticeable improvement in sell-out trends in April for several reasons.

Another delayed tax refund season would have concluded by the end of the month, normalized winter weather would have abated in the majority of the country to reach the peak of the freeze-thaw cycle that takes an enormous toll on roadways, the timing of Easter that pulled the holiday into March this year giving additional selling days in April, positive industry momentum over the past six months and a very easy compare from April 2017 all should have been a tailwind heading into the month of April. However, it appears that some of the factors that influenced March’s results may still be present.

Not only was the disbursement of tax refunds delayed again this year, but close to the filing deadline the IRS experienced a systemwide outage that momentarily halted the processing of tax refunds.

This forced the government to grant taxpayers an additional day to file taxes, which further delays refunds hitting the consumers’ pockets as it could take weeks for households to finally receive their payment. On top of this, the number of total refunds and the total dollar amount of refunds dispersed as of the end of the tax season were down 0.6% and 0.4%, respectively, which means less money among consumers to allocate to bigger-ticket purchases like new tires.

Additionally, we wonder if weather had an impact on consumer behavior. Our analysis of weather trends suggests that almost half the United States (22 states), recorded months that were in the top 10% of the coldest Aprils ever in their state’s history including Wisconsin and Iowa which registered their coldest April on record. This could have led to consumers keeping specialized tires (snow tires) on their vehicles through the duration of the month until the winter weather had completely passed along with the freeze-thaw cycle.

Average tire tier rankings Tier

Feb ’17

Mar ’17

Apr ’17

Feb ’18

Mar ’18

Apr ’18

Tire 1

1

3

3

3

3

3

Tire 2

2

2

2

1

1

2

Tire 3

3

1

1

2

2

1

SOOURCE: NORTHCOAST RESEARCH HOLDINGS LLC

26

It appears most factors present have been working against the industry to start 2Q and evidently weighed on demand trends.

Ultimately, most of the headwinds now appear to be in the rearview and we continue to expect mix trends to improve in the back half of the year as we may begin to see pent-up demand being unleashed for consumers who had delayed tax refunds or adverse winter weather, which is beginning to show through positive industry data.

Despite this, ample road lies ahead for dealers to recoup some of the softer trends through the back half of the year. On a more positive note, commentary from industry contacts in early May leaves us feeling incrementally more positive on a go-forward basis despite the poorer performances over the past couple months.

In response to best and worst performers, it seems as though mix trends continue to keep a similar cadence as Tier 1 brands remain out-of-favor with consumers. Tier 1 legacy nameplate brands have now been the worst performer for five consecutive months and have only been the top performer in three out of the last 15 months.

Meanwhile, Tier 2 brands continue to be the standout performer over the past year as this is a segment value-conscious continually gravitate toward while Tier 3 brands found themselves back in the top spot for the first time since September 2017.

MONTHLY SURVEY A number of independent tire dealers were surveyed concerning current business trends. The results of the April 2018 survey are compared with those of April 2017. See the report on www. moderntiredealer.com.

REPLACEMENT TIRE SALES VOLUMES STILL MUTED Dealer commentary suggests consumer demand for passenger and light truck replacement was tepidly up in April compared to the prior year’s period.

A LOOK AT MIX TRENDS IN THE MARKET Our April survey suggests consumer demand has not shown much variance from a product category standpoint. Our survey work continues to illustrate that although consumers may desire a recognizable brand, the product’s price point is the main factor driving the purchasing behavior. This is especially true when customers arrive at the garage due to unexpected technical difficulties.

This theory that an accelerating economy, confident consumer and tight labor market would allow opportunities for industry participants to upsell towards more recognizable (and expensive) nameplate brands has not played out in reality. ■ 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 June 2018

Greater than the elements.

HT51 Highway Terrain All-Season

Cruise into the summer with the confidence and responsiveness of Kumho’s HT51 – because the conditions of the road should never slow you down.

70,000 P-Metric 45,000 LT-metric

720 A A UTQG

KumhoUSA.com

43 Sizes Available

NumbersThatCount

Relevant statistics from an industry in constant motion

30.8 million Number of light truck tire units sold in the U.S. replacement market in 2017.

SOURCE: MODERN TIRE DEALER’S JANUARY 2018 FACTS ISSUE

205/55R16 $155.81 LT245/75R16 16.7 million Number of tires sold online in 2017.

That’s 7% of the replacement consumer tire market.

Top U.S. replacement passenger tire size in 2017.

Average advertised price in 2017 for a V-rated major brand tire size 215/55R17.

SOURCE: MODERN TIRE DEALER’S

SOURCE: MODERN TIRE DEALER’S

JANUARY 2018 FACTS ISSUE

JANUARY 2018 FACTS ISSUE

Top U.S. replacement LT tire size in 2017.

SOURCE: MODERN TIRE DEALER’S JANUARY 2018 FACTS ISSUE

SOURCE: MODERN TIRE DEALER’S JANUARY 2018 FACTS ISSUE

$306

60 million

Average parts and labor repair estimate in 2017 for an engine light-related cost on the Hyundai vehicle brand, the lowest for all vehicle brands.

Number of cars produced every year. That’s 165,000 a day, 6,875 an hour and 115 a minute.

SOURCE: CARMD.COM CORP.

SOURCE: HOLT LLOYD INTERNATIONAL LTD., WWW.HOLTSAUTO.COM

79%

18%

25.7

Market share of thte 2017 consumer tire distribution channel held by independent tire dealers. This is a 2% increase from 2013.

Percent of Americans who can drive a car with a manual transmission.

The number of minutes a typical auto commuter spends driving to work each morning.

SOURCE: FACTSLIDES.COM

SOURCE: AUTO INSURANCE CENTER

1891

The year in which the first car accident occurred.

SOURCE: HOLT LLOYD INTERNATIONAL LTD., WWW.HOLTSAUTO.COM

SOURCE: MODERN TIRE DEALER’S JANUARY 2018 FACTS ISSUE

28

MTD June 2018

LANDSAIL’S SUV/CUV TIRES LS588 SUV/CUV

ALL SEASON PERFORMANCE CROSSOVER & SPORT UTILITY TIRE

Optimized Tread Design.

Our computer-aided design has optimized the tread pitch and alignment, reducing road noise levels at higher speeds.

Lateral and Longitudinal Grooves. Deliver smooth handling and better control on dry and wet roads.

Wet Grip Sipes and Grooves.

Added sipes and grooves improve hydroplaning resistance and handling on wet roads.

Dry Grip. Tread design creates a much larger contact area allowing better stability, cornering and control.

CLV2

ALL SEASON HIGHWAY CROSSOVER & SPORT UTILITY TIRE

Wet traction grooves. Four wide longitudinal grooves speed water evacuation for great handling and cornering on wet pavement.

Solid stability rib. The continuous center rib ensures straight-line driving stability with just enough siping to further improve high-speed performance.

Stable shoulder design. The large shoulders give you the contact patch you need for sure cornering and stability.

Grip optimized grooves. The design of the CLV2’s lateral and longitudinal grooves delivers extra gripping ability, more control, and better braking performance.

CLX11

ROADBLAZER H /T

CLX10

RANGEBLAZER A /T

HIGHWAY TERRAIN TIRE

ALL-TERRAIN TIRE

Noise-Reducing Shoulder.

The closed shoulder design blocks noise from the middle of the tires for a quieter, more comfortable ride.

Optimal Middle Pattern. The consistent middle pattern and uninterrupted closed shoulder design improves stability.

Longitudinal Traction Grooves.

The longitudinal groove design is optimized for effective drainage, faster braking, improved acceleration and stable turning on wet terrain.

High Stability Tread Corners.

The special cutting corner on all borders of the groove pattern makes it more dimensional while promoting driving stability and comfort.

Zig-Zag Middle Block. The zigzag middle tread pattern reduces noise while the sloped corner repels rocks and improves earthgrasping performance.

Special Shoulder Shape. The bench-shaped shoulder design provides excellent earth-grasping action for stable high-speed turns under dry and wet road conditions.

3121 NW 125 Street | Miami, FL 33167 | Phone: 305.621.5101 | LandsailTires.com | Follow us @landsailtires |

Best Practices

Preventive maintenance creates customer loyalty PLAZA TIRE SERVICE RECOMMENDS FLUSHES AND ALIGNMENTS By

Joy Kopcha

W

hen Mark Rhodes was growing up in southeast Missouri, full-service gas stations were a community staple. Consumers drove in for fuel

30

and an attendant put the gas nozzle in the tank and then checked the tire pressure, windshield wipers, windshield fluid and oil, and made sure to suggest tires when they appeared worn.

Those full-service stations are all but a

memory, and Rhodes, president of Plaza Tire Service Inc., wonders, “What has replaced that in our world?”

He wants consumers in his markets to answer that question with “Plaza Tire Service.” But Rhodes thinks any tire dealer

MTD June 2018

Plaza Tire Service ‘The Quick Change Artist’ Established in 1963 Plaza Tire Service outlets use two-sided counter mats to illustrate to customers details of its preventive maintenance services. See the company’s service offerings below and on page 32.

Plaza Tire Service has installed the Quick Check system from Hunter Engineering Co. in about onethird of its stores to inspect every vehicle, including the store in O’Fallon, Mo. The system has helped the company sell more alignments.

Synthetic oil change service: Best synthetic oil change

From $74.95

(includes oil system cleaner and fuel system cleaner)

Basic synthetic oil change

From $59.95

High mileage oil change service: Best high mileage oil change

From $68.95

(includes oil system cleaner, oil treatment and fuel system cleaner)

Better high mileage oil change

From $58.95

(includes oil system cleaner and oil treatment)

Good high mileage oil change

From $48.95

(includes oil system cleaner)

Standard oil change service : Best standard oil change

From $52.95

(includes oil system cleaner, oil treatment and fuel system cleaner)

Better standard oil change

From $42.95

(includes oil system cleaner and oil treatment)

Good standard oil change

From $32.95

(includes oil system cleaner)

Diesel oil change service: Valvoline Premium Blue

From $84.95

Shell Rotella-T 15W40

From $94.95

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

31

Best Practices can fill that preventive maintenance role.

Rhodes is a second-generation tire dealer who in 2017, along with his brother Scott, was named the winner of Modern Tire Dealer’s Tire Dealer of the Year Award.

“A lot of customers think you’re inspecting the vehicle just to sell them something, but it’s also providing a pretty good service that used to go on every week. I always tell our guys, at the end of the day somebody

has to point out to the customer ‘you have to change your air filter.’ Somebody’s got to make that suggestion.”

Those suggestions create traffic in the store, and Rhodes says, “It’s creating loyalty to the customer.”

Plaza Tire Service places most of its marketing focus on tires, and Rhodes says his rule has been to lead every promotional piece with tires first. “I’m getting a little

softer on that. We’re starting to do a lot more alignments. We’re doing more and we’re promoting it more.”

Another tool sits on the sales counter inside all 63 Plaza Tire Service stores. A two-sided mat details preventive maintenance services. One side breaks down the company’s good-better-best options for oil changes (see charts).

The other side details an “OEM approved” maintenance schedule (see page 30). In addition to synthetic, high-mileage and standard oil changes, it describes other additional services and explains why they’re needed. ■

Other services: Smart driver package

$64.95

(includes basic oil change, top off fluids, tire rotation and more)

Cooling system flush

From $99.95

(includes flush, conditioner chemicals and most types of anti-freeze)

Transmission fluid flush

From $129.95

(includes flush and conditioner chemicals for most cars)

Power steering flush

From $89.95

Pflush (includes flush, conditioner and most types of fluids)

Brake flush

From $69.95

(includes mechanical flush and addition of new, OEM-approved fluid)

You can handle

specialty assemblies

Differential service

From $99.95

3-step engine performance service

From $89.95

Tire repair

Ask for pricing

Tire rotation

Ask for pricing

Wheel balance

Ask for pricing

Wheel alignment

Ask for pricing

Front disc brake service

Ask for pricing

Rear disc brake service

Ask for pricing

Drum brake service

Ask for pricing

HD Tire Changer: % Saves time and adds safety % Increases capacity % Simplifies match-mounting

32

MTD June 2018

C o m m e r c i a l T i r e D e a l e r TM

NORTHWEST TIRE

invests in commercial tires for the future CUSTOMERS DEMAND WINTER TRACTION AND 16-PLY TIRES By

Joy Kopcha

I

n the last three years the economy has dealt Northwest Tire Inc. a pretty tough hand. Oil prices fell. The Canadian exchange rate tumbled, and farm commodity prices dropped. Those are three important pieces to the backbone of the Bismarck, N.D.-based tire business, and especially its commercial business.

Yet the 41-year-old tire dealership is thriving, expanding its footprint with new stores and adding locations in existing markets. In the North Dakota communities of Bismarck, Dickinson, Minot and Jamestown the company has opened truck and farm tire stores to accommodate more customers. By taking commercial tire service out of the existing stores in those communities Northwest Tire believes it is opening up more capacity in its retail bays, allowing both sides of the business to grow.

“Our commercial business is up,” says Kory Grossman, the company’s vice president, who has spent the last 25 years working for Northwest Tire. He says the company is growing organically within its existing stores, and also with the addition of new locations.

Northwest Tire has 17 stores, and all but one of them is in North Dakota. (There’s a store in Bemidji, Minn., that does a combination of retail and commercial business.) Northwest Tire also has four wholesale locations and two Bandag retread facilities that cap medium truck tires.

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

The company’s commercial tire business is diverse. “We’ve got big national accounts all the way down to the farmer who has one truck,” Grossman says. “We don’t have the luxury of running only large fleets or only farmers, because they shut down for months.” The company needs to retain both kinds of customers.

And it has to do that work 365 days a year, no matter the weather. That’s a real issue for Grossman, as winter brings cold, wind and snow. In February 2018 the mean temperature in Bismarck was 8.6 degrees Fahrenheit. On the coldest night of this past winter, Jan. 13, the low temperature was -29 degrees F. Grossman says it comes down to the company’s employees. “Our staff, that’s really the deal breaker.

“We have pretty good equipment, but if it’s not taken care of, it doesn’t matter.

We are very proud of our staff and they do many things to plan for weather, especially when doing fleet service, service calls and after-hours calls.”

Those preparations are making sure the air lines on the company’s service trucks don’t freeze and using the correct viscosity

index oil for the booms and hydraulic equipment. Service truck operators have to be careful with tire lubricants and mounting compounds because they can freeze onto the wheels and tires when mounting tires on site. Air guns get so cold technicians can’t touch them without wearing gloves.

The winter temperatures are a key driver in the design of Northwest Tire’s stores.

“In almost all of our places you can get the truck inside, out of the elements,” Grossman says.

“Our biggest challenge is, ‘When is it too cold to go out?’” There are times the wind is blowing 25 or 30 mph and the temperature is -25 degrees F. Grossman says those super cold snaps don’t usually last long, but there might be one week where it’s a real safety concern. And that’s when a customer’s brakes are more likely to freeze. Those calls for help usually don’t come in during regular business hours.

And it’s a rarity when Northwest Tire doesn’t take those calls.

“We’re out there when we shouldn’t be out there,” Grossman says, referring to the wicked winter weather. “But we’ve got to take care of the customer.”

Eight of Northwest Tire’s 17 stores offer commercial services, including this location in Grand Forks, N.D. The company’s most popular truck tire brands are Bridgestone, Firestone, Toyo, Sumitomo and Yokohama.

33

Northwest Tire ONLINE SALES

TIRE TRENDS

There’s probably one big thing standing in It’s probably not a surprise that truck the way of truck tires and other commercial drivers in North Dakota and Minnesota tires becoming a hot online commodity are focused on how their tires perform in — their size. Even though there are online the winter. Grossman says winter traction retailers who sell medium truck tires, and is an especially important trait with drivers even bigger tires, Grossman doesn’t think of Class 4-7 trucks who run short hauls.

FedEx or UPS drivers will be eager to load But Northwest Tire customers also are and unload them. It comes down to those buying more 16-ply tires to accommodate “convenience issues,” he says. trucks with heavier front axle ratings of Those who have talked about ordering 13,200 pounds, compared to the previonline relay a list of concerns ous long-standing weight of that keep them from pull12,000 pounds. (The extra ing the trigger. “They have weight load has come as truck concerns about casing trades, manufacturers have added prices are not always comequipment to comply with petitive, shipping costs, return emissions regulations; it’s had freight, and handling them.” a particular effect on the steer They don’t get too many instalaxle.) Grossman says there’s lation requests for commercial been “a migration” as customtires bought online, he says. ers have replaced 14-ply tires Northwest Tire’s farming with 16-ply tires. customers usually aren’t lookThe company’s truck ing at tires online. They’re tire customers are making a more likely to ask about differsimilar gradual migration to ent tires if they feel their cur- Kory Grossman says, wide-base tires. But Grossman is part of our rent ones haven’t performed “commercial says they’re more apt to make long-term growth plan.” well. But if they’re satisfied that switch when buying a with their tire performance, new truck. “We see more new they’re brand loyal, Grossman says. equipment ordered with wide-base tires Large fleets are more versed on new than changeovers,” Grossman says. And products in the marketplace. Grossman even then, it’s been a slow, gradual trend. says they see them in trade publications.

“Fleets that can calculate or quantify the “They don’t come into our stores and say, cargo savings to freight savings to either ‘I read about this XYZ brand online.’ haul more or make less trips are eager to “The average commercial customer use ultra wide-base tires.” has several people like us calling on them Grossman is “an advocate for retreading,” several times a week. They don’t have the and serves on the Bandag dealer council. desire to go online. They’re exposed more He’s cautious when talking about the effects than the average (retail) customer.” of low-cost import tires on the market.

The company’s retread operations have been affected, but he says it’s difficult to measure a direct correlation. “It is hard to know the exact amount because of the change in business for the oil and farming businesses that has happened the last couple of years.” Grossman believes most fleets that have a tire program are tuned into the benefits of retreads. “I don’t think you can run a good tire program without including retreading.”

The company has a steady base of shoppers that specifically seek tires made in the U.S. — “about half of our customers.”

At the same time, there is a market for imported tires.

In the last year, Grossman says Northwest Tire has expanded its offerings from the Bridgestone and Firestone brands, and also now carries the full lineup from Sumitomo.

INVESTING IN EQUIPMENT AND EMPLOYEES The tire dealership doesn’t switch brands often, but upgrading equipment is another story. “That’s endless,” Grossman says.

Those decisions are driven by the need to be more efficient, and to keep employees safe.

“We’re buying tire trucks that have hands to handle bigger OTR tires. All of our commercial outlets have heavy-duty tire changers and balancers with lifts. We’re pulling double trailers to haul more tires.”

He believes every company pickup truck has a hydraulic lift gate.

Grossman says four or five years ago service trucks cost $100,000. The last one he bought was $186,000.

All of those investments help Northwest Tire conduct business, but they also keep the company’s workers safe. “We do things so our employees aren’t 50 years old and their bodies are shot.” ■

Also in CTD

This Williston, N.D., store was built from the ground up three years ago. It is one of four Northwest Tire stores that serves both consumer retail and commercial business customers from under one roof.

34

Truck tire market: 2017 U.S. replacement medium/heavy truck tire brand shares ..................... 36 ‘You’ve got to pay to play’: Tips for selling trailer tires and towing safety to consumers ............ 41 Commercially Viable ......................... 46 AG Tire Talk ........................................ 52 Tire pressure management: How TPMS and ATIS technologies meet fleet needs ................................ 55 MTD June 2018

Market Analysis

Truck tire market analysis IF YOU THOUGHT DEMAND WAS HIGH LAST YEAR…

By

Bob Ulrich

A

n unexpected surge in domestic truck tire demand in the second half led to a record number of replacement truck tire shipments in 2017. Unable to produce enough tires to meet the demand, Tier 1 and Tier 2 manufacturers lost market share versus 2016.

The U.S. Tire Manufacturers Association (USTMA) estimates domestic replacement and original equipment truck tire shipments totaled a record 25.1 million units, broken down as follows: Replacement: 19.7 million.

OE: 5.4 million.

USTMA members produced 14 million units in the U.S. last year, more than 11 million units less than total U.S. shipments.

In addition, USTMA members exported 2.5 million truck tires.

The 12 companies that make up USTMA’s membership are Bridgestone Americas Inc., Continental Tire the Americas LLC, Cooper Tire & Rubber Co., Giti Tire (USA) Ltd., Goodyear Tire & Rubber Co., Hankook Tire America Corp., Kumho Tire U.S.A. Inc., Michelin North America Inc., Pirelli Tire North America Inc., Sumitomo Rubber Industries Ltd., Toyo Tire Holdings of Americas Inc. and Yokohama Tire Corp.

Modern Tire Dealer estimates a record 19.5 million radial and bias medium and heavy truck tires were shipped in the U.S. last year.

TRUCK TIRE IMPORTS China was the largest exporter of truck tires to the U.S. last year, accounting for 6.2 million units. And that number will reach at least 10 million tires this year, based on available government import numbers to date.

Through the first three months, Chinese truck tire imports, predominantly radial, are up close to 60%. Imports from Vietnam (more than 1,800%!), France (close to 100%) and Italy (90%) also are up dramatically.

Truck tire imports from Thailand, where a number of Chinese tire manufacturers have built plants the last few years to avoid heavy tariffs, are up 5.6%, while Japanese imports are up 3.5%.

WHAT TO EXPECT At least through the first quarter of 2018, USTMA member truck tire shipments are down, while non-USTMA member shipments are up significantly. That is despite Cooper Tire & Rubber Co.’s 1Q performance; the company says its truck tire sales are up 25%.

On April 6, 2018, USTMA’s forecast for this year was positive: U.S. replacement shipments will increase 1.7%, to 20 million units, while OE shipments will increase 3.7%, to 5.6 million

36

2017 U.S. replacement medium/ heavy truck tire brand shares (based on 19.5 million units) Bridgestone

14.0%

General

2.0%

Michelin

14.0%

Toyo

2.0%

Goodyear

10.0%

Westlake

2.0%

Yokohama

8.0%

Dynacargo

1.5%

Firestone

6.5%

Falken

1.5%

Continental

5.0%

Sumitomo

1.5%

Double Coin

5.0%

Ameristeel

1.0%

Hankook

4.0%

Duraturn

1.0%

Roadmaster

3.5%

Gladiator

1.0%

Hercules

2.5%

Kelly

1.0%

Sailun

2.5%

Kumho

1.0%

Aeolus

2.0%

RoadOne

1.0%

BFGoodrich

2.0%

Samson

1.0%

Dayton

2.0%

Others

4.0%

SOURCE: MODERN TIRE DEALER

units. Already through April, overall shipments are up, with OE shipments leading the way.

Cooper introduced its namesake TBR tire brand in March. The brand will target fleets and original equipment manufacturers, while Roadmaster will primarily target owner-operators and trailer manufacturers. Cooper is relying on its “commercial servicing dealerships” for distribution in the U.S. The average price of a medium/heavy truck tire in 2017 was $348.71. Because raw material prices are expected to rise steadily throughout the rest of this year, price increases from the manufacturer to the dealer are possible.

Competition from low-cost radials produced in China is expected to remain a thorn in the side of both new tire manufacturers and retreaders in the U.S. One Chinese company in Qingdao recently offered 295/75R22.5 16-ply Aeneas HS205 steer tires to U.S. dealers for $123 apiece. Even with FOB costs, that’s pretty low. ■ MTD June 2018

Advertorial

In 13 years, Nexen Tire has gone from making tires mainly for mainstream passenger vehicles to tires for every purpose, including the U.S.-designed-anddeveloped Roadian MTX Mud Terrain Xtreme.

Nexen Tire

is building its U.S. brand on quality and consistency

T

he North American tire marketplace is highly competitive, so when a company has established its brand as an industry leader in just 13 short years, it’s worth a closer look to see why.

Nexen Tire America Inc. has worked hard to provide the highest quality tires to independent tire dealers while at the same time providing original equipment fitments to 30 different car models in the U.S. A research and development facility in the U.S. has helped Nexen design tires specifically for this market.

By concentrating on the needs of the U.S. market, Nexen Tire has been able to strategically grow its portfolio of consumer tire offerings tailored to the demands of U.S. drivers.

The company has an impeccable quality record in more than 70 years of manufacturing, including 18 years since rebranding as Nexen Tire in 2000. That level of quality has allowed dealers to recommend the Nexen brand to consumers

with great confidence. Consumers, in turn, are recommending Nexen branded tires to their families and friends. The passion Nexen has for quality has helped propel it to a Tier 2 brand in the marketplace today.

With its manufacturing and research and development teams delivering well-designed and reliable products, Nexen Tire is focusing on boosting brand recognition in the U.S. market.

Breaking into the OE market The company was not new to the tire business when it began to expand globally. Between 1942 and 2000, Nexen Tire was known as Heung-A Tire Company and later as Woosung Tire.

In 2000, the words “next” and “century” were combined to form a new name and a global brand: Nexen. In 2005, the Korean company set up its U.S. arm, Nexen Tire America Inc. Vehicle makers recognized Nexen Tire’s quality, and the

Advertorial company’s OE presence in the U.S. has grown rapidly. Nexen went from zero OE business in the U.S in 2012 to selling 2.8 million OE tires in 2017. Projections call for 3.2 million Nexen tires to be fitted on new vehicles in the U.S. in 2018 and 3.5 million in 2019.

Nexen Tire is one of a select group of tire manufacturers fitting tires on new vehicles in the U.S. The Nexen Tire brand is original equipment on 30 models by four automakers. Outside of the U.S., 123 models by 12 automakers roll on Nexen tires.

Nexen Tire has been a strategic partner with Fiat Chrysler’s Ram brand since 2012. The company has OE fitments on nearly all Ram vehicles. One of the newest is the 2019 Ram 1500, which will be fitted with Roadian HTX RH5 tires in size 275/55R20.

“We were awarded the number one market share for OE on that particular size because we outperformed our main competitors that have shares of that particular fitment,” says Jessy Kim, chief branch officer at Nexen Tire’s office in Detroit, Mich. “For Nexen to get on that particular fitment is a testament to how well-perceived our product is from FCA’s perspective.”

This artist’s rendering shows Nexen’s $7 million North American Technical Center near Akron, Ohio, which is scheduled to open in November 2018.

stringent criteria for tire performance on OE tires and apply that to the replacement market.”

Consistent quality Partners to the OEs Proving engineering and technical capabilities is one aspect of gaining original equipment business. Responsiveness is another.

The company typically performs additional tests, develops a particular attribute, generates more test data and may even complete a demonstration project to show its response speed as well as technical know-how.

The goal is to show that Nexen Tire can be a significant partner to an OEM. “We pride ourselves in how quickly we can turn around our customers’ requests for data, testing or tire builds.

We highlight the customer service aspect of our business when we approach an automaker,” says Kim. OE business and replacement tire sales go hand-in-hand.

“Nexen Tire makes tires that are approved by OEMs. We’re not just one of the hundreds of different tire suppliers making tires for the replacement market,” says Kim. “We can meet the most

OE fitments in North America Four automakers source the Nexen Tire brand for their vehicles sold in North America. All models are current production, unless otherwise indicated.

• Chrysler Pacifica • Fiat 500 L • Fiat 500 X • Ram 1500 (2019) • Ram 3500 • Ram ProMaster and ProMaster City • Kia Optima • Kia Forte • Kia Rio • Hyundai Elantra • Hyundai Santa Fe • Hyundai Tucson • Porsche Macan

If there’s one thing Kim wishes tire dealers knew about Nexen Tire, it’s the brand’s high rankings in initial quality surveys of new vehicles. He notes that Nexen has performed very well in customer satisfaction surveys in the last several years in both the U.S. and China.

Kim attributes the company’s world-class quality to its manufacturing processes. “The plants are all state of the art and highly automated so we’re able to produce very repeatable, very robust high-quality tires on a very consistent basis.”

Focused on the U.S. market Nexen Tire is one of 12 companies supplying OE tires to U.S. automakers. The company’s tire technology center near Akron, Ohio, develops and designs all of Nexen’s OE tires for U.S. vehicle manufacturers for the North American market. The tech center also is responsible for designing light truck and sport utility vehicle replacement tires for North America.

Nexen Tire has outgrown the tech center, which opened in 2008.

Construction of a 44,000-square-foot facility is scheduled to be complete by November 2018. The $7 million project includes offices, lab, testing machines and a warehouse, according to Don Lee, director of technology.

The new facility will allow Nexen to expand the scope of the tech center. “Eventually we will be responsible for all OE and replacement product lines in the next few years in North, South and Latin America,” says Lee. The tech center developed OE tires for the Chrysler Pacifica as well as Nexen Tire’s first mud-terrain and off-road replacement tire. The new Roadian MTX Mud Terrain Xtreme marks Nexen’s entry into the hardcore off-road market.

Nexen Tire says that many are already calling the MTX a masterpiece of both design and function with dual “Beast” and “Machine” sidewalls, superior handling on mud terrain, exceptional traction for rock crawling, consistent performance on loose gravel and exceptionally quiet performance on the highway.

The look of the sidewalls was inspired by the Transformers and

The Roadian MTX Mud Terrain Xtreme tire’s distinctive dual sidewalls, called Beast (left) and Machine, give customers the freedom to choose the look that best represents their lifestyle and vehicle.

Jurassic Park movie franchises, according to Aaron Neumann, product development manager.

“We did the full development and design here for that product, we benchmarked industry-leading products, and we tested the product product on and off road here in the United States,” says Neumann.

“We went through a few development loops to arrive at our current design with the tread pattern, which we designed here in-house, and the side bite design, which is different left to right so the consumer can pick their style.”

The mold profile, which largely determines the shape of the footprint the vehicle leaves on the road, also was designed by the tech center’s engineers. The tire is the company’s first with three-ply construction, which provides better stability and durability when hauling heavy loads and on harsh off-road terrain.

“We confirmed the footprint, shape and construction for every single size of the MTX here in this office,” says Neumann.

“We’re getting a lot of good feedback on the appearance and the performance of the tire.”

Neumann believes a tech center located in North America sets Nexen Tire apart from other tire companies.

“We know what the best products out there are. We know what enthusiasts like. We’re testing those tires on American vehicles in American settings and we’re designing them here in Akron.

So we’re very much an American-centric kind of company.”

Honors for design and performance The Roadian MTX is the latest of new products ranging from UHP to light truck tires. Up to five years ago, the company was focused on passenger and UHP tires. In the last five years, Nexen Tire has added a full line of light truck, SUV and CUV tires, an extreme off-road tire, and even a commercial truck tire.

The new products have earned honors for their design and recognition for their performance and quality.

Nexen is the first tiremaker in the world to be recognized for the “grand slam” of global awards for industrial design excellence: iF Design Award (2011 N800, 2011 WG Sport, 2014 N’Fera SU1, 2018 Winguard Sport 2); the International Design Excellence Awards (2014 Green Hive Concept, 2017 N’Fera AU7, 2017 Breathre Concept); the Red Dot Design Award (2012 N9000, 2015 N’Fera SUR4, 2015 Roadian AT Pro RA8, 2016 GreenHive Concept, 2017 N’Fera RU1, 2018 N’Fera AU7); and the Good

Design Award (2015 N’Fera AU5, 2015 N’Fera RU5, 2015 Roadian AT Pro RA8, 2016 N’Fera SUR4, 2016 N’Fera RU1, 2017 N’Fera AU7).

Last year, in third-party reviews by a leading consumer magazine, five Nexen Tire products earned top 10 spots in the rankings of their respective product categories. Two products, the Roadian HTX RH5 and Winguard Ice, were each ranked among the top 10 tires tested in the all-season truck and winter/snow categories, respectively. The N’Fera SU1 UHP tire landed in the sixth spot in a ranking of summer tires. The Aria AH7 standard touring tire took the number five spot in a ranking of all-season tires. In comparisons of all-terrain truck tires, the Roadian AT Pro RA8 earned a number three ranking.

“When we launch new products, we make sure we find the gaps in the marketplace our competitors are missing. We develop unique selling points that are going to make us stand out among the competition,” says Jay Lee, director of product planning.

For example, the N’Fera AU7, released in 2017, is an ultra-high performance tire designed to provide exceptional handling year round, especially in wet conditions.

Proven performance on the track Nexen Tire launched a motorsports identity and its first-ever motorsports tire, the N’Fera SUR4G, at the beginning of 2016.

Motorsports allows Nexen to do two things in the marketplace.

One is showcase high performing products. The other is communicate its brand excellence and dedication to performance and quality to automotive enthusiasts as well as tire enthusiasts.

“Motorsports is like having a proving ground of our product in front of an audience,” says Paul Jho, senior motorsports manager.

“We are putting our tires in a very extreme condition, from both a marketing aspect and also from a research and development aspect. We collect a lot of data to help develop our future products.”

Nexen Tire renewed its partnership with World Champion Formula Drift driver Fredric Aasbo in March 2018 and will sponsor him for two more years. Aasbo captured both the Formula Drift Series and World championships in 2015, smashing the series record for most wins scored by a driver in a single season along the way.

Aasbo will compete this season in a vehicle redesigned by Papadakis Racing. The 2019 Toyota Corolla hatchback features the Nexen SUR4G street-legal tires, which are engineered for superior performance in Formula Drift, SCCA and Time Attack time trials.

“One of the things that people may not realize about drifting is that it is a motorsport that requires an incredible amount of grip,” says Aasbo. ”We make 1,000 horsepower, and we need a sticky tire like the Nexen N’Fera SUR4G to succeed on the track.”

Three-time Formula Drift champion Chris Forsberg and professional drifter Ryan Tuerck also joined the Nexen motorsports family in 2018. Forsberg’s Nissan 370Z and Tuerck’s Toyota GT86 will use Nexen Extreme UHP N’Fera SUR4G tires throughout the 2018 Formula Drift season.

Jho says the drivers are a key element of Nexen Tire’s product development. “When it comes to tire development, we don’t develop on our own. We use top drivers. They will test with their vehicles, we collect data, and the drivers give their feedback.”

Motorsports also creates content for Nexen Tire to use in

Advertorial marketing, public relations and social media. “To market your product, you’ve got to have a story, and motorsports gives you that story with exciting visuals and experiences,” says Jho.

NexenACE for dealers Nexen Tire is boosting its online presence to spread the word about its tires to both dealers and consumers. For dealers, there’s a new tool for sharpening their customer service and marketing skills called NexenACE. The web-based education portal, which launched in April 2018 at www.NexenACE.com, is designed to help Nexen dealers maximize their earning potential.

NexenACE gives tire professionals access to valuable and engaging tire information as well as all the latest action taking place that makes Nexen one of the fastest-growing tire manufacturers worldwide.

“Nexen Tire is still a relatively new brand in the U.S., and many tire professionals don’t know the entire story behind our success,” says Kyle Roberts, senior director of marketing.

“Our training program will be an invaluable tool for those just starting out with our brand, as well as established Nexen dealers who are looking to take their efforts to the next level.”

Roberts says the portal is open to all of the company’s partners including shop owners, wholesaler reps, tire techs and “any other tire professionals interested in learning about the world-class products and activities associated with Nexen Tire.”

A quick registration process gives NexenACE users access to training videos and information on tire patterns and the latest news. Users can earn points to redeem for branded items and to enter sweepstakes for cash cards, electronics and a dream vacation. Regular users will earn more points for viewing the training modules, which are updated monthly.

“Those who partner with and sell Nexen Tire-branded products know the quality and consistency we deliver every day,” says Roberts. “However, many in the tire industry are unaware of the great strides we have made in design and in

Optimized for extreme performance both on track and road, the SUR4G (left) is available to the public at select retail locations nationwide. The N’Fera AU7 UHP tire (right) provides excellent wet traction, stability and a quiet and comfortable ride in all road conditions year round.

building our brand. The NexenACE education portal is a great way for us to communicate our growth to all tire professionals.”

A mobile shopping experience For consumers, Nexen Tire has redesigned its website to keep pace with their changing digital shopping habits.

Launched on June 1, www.NexenTireUSA.com provides access to information via computers, tablets and mobile devices.

Consumers expect a mobile shopping experience before they step into an actual store. Roberts says the website offers a more fluid approach to finding tires and dealers that carry the Nexen Tire brand. Third-party product reviews are featured to give consumers all the information needed to make a purchasing decision. A new resource section allows consumers and media to view and to download all brochures, images, logos and videos. Online shoppers will especially appreciate the interactive 360-degree photography for all Nexen products.

“Consumers are using the web to become more informed buyers for all products. Now, more than ever, consumers rely on reviews, comparative research and online product specs before making their purchasing decisions,” says Roberts.

For many tire shoppers, the first stop before the tire store is www.NexenTireUSA.com.

“It is important that Nexen Tire maintains a first-class digital footprint that provides all relevant information in an easy-todigest format to push our brand to the top of the purchase ladder.

Our redesigned website is one step towards strengthening that footprint and our overall brand perception.” ■

The new online tool for dealers is called NexenACE.

A new website, www.NexenTireUSA.com, is strengthening the Nexen Tire brand’s footprint and perception.

Specialty Tires

The horse trailer and the flatbed trailer are at JD’s Auto and Trailer Repair for their annual general service.

The vehicle is in the shop for installation of a hitch and electrical system. The vehicle is connected to a test panel, which simulates a trailer, to verify proper electrical function of the newly installed plug.

‘You’ve got to pay to play’ TIPS FOR SELLING TRAILER TIRES AND TOWING SAFETY TO CONSUMERS

By

Ann Neal

W

h e n Jo h n D av i s opened his tire store on July 1, 2010, he knew there was a gap in the Chicagoland tire and trailer service market. Davis, who goes by JD, set out to fill it.

By 2014, he had created a successful business niche. Today, JD’s Auto and Trailer Repair in Lily Lake, Ill., specializes in servicing all varieties of tow-behind trailers and selling trailer tires.

A PASSION FOR TRAILERS Davis’ passion for trailers and tires goes back to his childhood. From an early age, Davis was mechanically inclined. He loved everything related to building or operating machinery, vehicles and trailers.

His enthusiasm was encouraged by his father, Jim Davis (JD Sr.) who owned and operated JD Trailers & Hitches Inc. in Carol Stream, Ill. From 1968 to 2002, JD Trailers & Hitches was the largest retail hitch facility in the Chicagoland area selling w w w . M o d e r n T i r e D e a l e r. c o m

and installing trailer hitches, electrical systems, trailers and snowplows.

Growing up in the family business spurred Davis’ interest in trailer and automotive service work. Unfortunately, the senior Davis retired before his son graduated from college. John Davis never had the opportunity to officially work in the family business like his three older siblings.

Davis attended Augustana College in Rock Island, Ill., where he received a bachelor’s degree in business administration, with a concentration in marketing, in 2004. Upon graduation, Davis wanted to pursue his interest and follow his automotive roots. He accepted a position with an independent, multi-location tire dealer.

Davis was quickly promoted to assistant manager and then manager of his own location. During this time, he gained extensive tire knowledge and expertise through seminars and workshops as well as daily sales and service experience. He left the first tire dealer for another independent tire dealer closer to his fiancée, Manda, in

2007. They were wed in 2008 and moved back to the Chicagoland area in late 2009.

By this time, Davis was ready to make the vision of his own shop a reality.

Davis believed he could use his tire, trailer and automotive expertise to execute his business plan. “I knew I could create a unique trailer service business by spreading the word that there is a shop providing top-notch service along with trailer and tire knowledge from actual experience.”

Real-world experience servicing trailers was a significant advantage for him. “Most of the places claiming trailer service as an offering are sellers of trailers and offer service simply to comply with their trailer manufacturers’ agreements,” explains Davis.

At first, Davis provided automotive repairs and passenger tire sales along with trailer service. He worked for four years carving out his specialized niche. Today, JD’s Auto and Trailer Repair is devoted solely to trailer service and employs two service technicians, a full-time sales person and Davis.

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Specialty Tires “This location is ideal for my specialized business,” says Davis. “We are close to Chicago, just over 40 miles, but far enough west to accommodate boaters, camping buffs and be immersed in horse country.

Horse enthusiasts from several nearby farms swear by the service and quality of work we provide.”

The Lily Lake area is also very popular for landscape and other professionals towing trailers on a daily basis during their busy seasons.

“It is rare for more than a few days to go by without a customer stating they were referred by someone who told them JD’s is the only place to go for trailer work,” says Davis. “It is a great feeling to know you are filling a very-needed niche and filling it well.”

WIN-WIN-WIN CRITERIA Davis attributes the business philosophies he follows to his father. The first philosophy is that all sales and service meet a “winwin-win” criteria. That means the client

riding, car racing and showing and many more. Very rarely do they budget anything for trailer maintenance.

“Their trailer is the necessary evil to transport the precious animals or toys, but without it the toys don’t travel. Or worse yet, they are stranded on the side of the road due to lack of trailer maintenance.

An annual trailer general service is a very economical insurance policy,” says Davis.

EVERY INSPECTION STARTS WITH TIRES Davis attributes much of his success to a focus on customer service and educating his clientele on safe towing habits and the importance of regular trailer maintenance.

He developed his own inspection process for servicing trailers. Safety, function, and legal requirements for trailers are at the forefront of the trailer general service inspection at JD’s Auto and Trailer Repair.

The inspection always starts with all the tires, including the spare tire. First, technicians verify the existing tires are

There are two 12-by-20-foot-wide doors on the front of JD’s Auto and Trailer Repair, enabling almost all trailers to be serviced indoors.

must benefit from the purchase or service, the trailer, or vehicle in the case of a hitch and wiring, must be improved, safer and/ or more secure after the purchase and, finally, the business must profit from the transaction.

“Profit is not a concept most consumers consider, but a business needs to be profitable in order to still be in business the next time the consumer needs them.

And I don’t feel bad reminding clients of that fact when necessary,” says Davis.

PAY TO PLAY “You’ve got to pay to play” is Davis’ second business philosophy, and he often communicates it directly to his customers.

Clients frequently will tell Davis the costs involved with their hobbies, such as boating, camping, horse showing and

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trailer tires, note whether they are radial or not and document the current and required pounds per square inch. Second, the tires are inspected for capacity verification. Third, the amount of visual and/or unusual wear is documented. Finally the date of manufacture is recorded.

Davis says it is important for consumers to understand the depletion of capacity and structural integrity trailer tires sustain from age alone. His thorough tire inspection process led to sales of over 400 trailer tires last year.

The general service continues with an inspection of all bearings, hubs/drums, axles, brakes when applicable, suspension, running gear, coupler, jack(s), frame, doors, ramp, and the exterior electrical system including running lights, turn signals, and marker lights.

To complete the service, technicians inspect and document all safety/emergency elements of the trailer including safety chains and breakaway systems. Once the inspection is completed, customers are given a comprehensive report on the condition of their trailer and an estimate for any additional work it requires.

JD’s Auto and Trailer Repair performed over 200 general services in 2017. “We service a variety of trailers including gooseneck and pull-behind horse trailers, fifth-wheel and tow-behind travel trailers, open and enclosed utility, car hauler and snowmobile trailers, heavy-duty equipment haulers as well as boat trailers. Basically, any style trailer smaller than a semi-trailer,” says Davis.

His 3,000-square-foot building includes a show room, sales counter, waiting room, office space and a three-bay shop which accommodates several trailers at a time.

The three bays prevent technician stalemate while waiting for an estimate to be written and customer approval.

Davis and his technicians utilize a unique lifting method for trailers. An asymmetrical auto lift is used at the rear of the trailer and a forklift with customized tongs is used at the coupler to raise the trailer to a comfortable working height. Jack stands are then placed under the tongue to secure the trailer while the service is performed.

JD’S TIPS FOR SERVICING TRAILERS Davis advises dealers to educate themselves in order to develop a comprehensive inspection report that fits the safety, function and legal requirements for the types of trailers they expect to service.

He also recommends establishing a regular service interval. “We use Dexter Axle’s recommendation of every 12,000 miles or 12 months whichever comes first. Then educate your customers on the importance of this preventative maintenance,” he says.

Also, try to avoid the “whack-a-mole” service motto. “Clients will often request you only look at a specific problematic issue not realizing it may be just one symptom of the true issue,” says Davis.

“When a trailer has issues a thorough inspection and general service will often find the root cause of those issues much more efficiently than chasing the symptoms.

Securing consent for a general service allows MTD June 2018

Specialty Tires the diagnostic time to find the root cause and will often save the client money and the trailer technician time and frustration.”

JD’S 6 TIPS FOR SELLING TRAILER TIRES A trailer inspection documents the reasons for recommending new tires. The inspection should address six key areas.

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1. Is there unusual wear? When the inner or outer portions of the tires have less tread life than the rest of the tire, determine the root cause of uneven tread wear. Is the trailer being overloaded? Is there an axle issue? Is the suspension worn out? Work with the customer to determine cause, solve the issue and then sell new tires that fit the needs.

Up to 70% of trucks on the road are misaligned, creating a modern-day gold rush for alignment service providers. Dealers are earning up to $12,600 profit in the first month alone.

2. Are the tires just worn out from the trailer being towed? If the tread life has expired or is on the verge of expiration, recommend new tires.

3. Are the existing tires under or barely adequate for trailer and load?

Unfortunately, several trailer manufactures have the tendency to equip their trailers with the least expensive tire option which just meets the trailer’s capacity.

That coupled with the fact many haulers push their trailers to the maximum capacity and beyond leads to tire failure, according to Davis. Many times, a simple upgrade to the next load range can solve this issue for a minimal cost difference to the consumer.

4. Are the existing tires actual trailer tires? Trailer tires are designated by “ST” before the size. “For instance, ST205/75 R15, is a very common tire size for us,” says Davis. “Truck tires and even bias ply tires are not constructed the same as trailer tires. With trailer tires the emphasis is placed on capacity and durability with thicker side walls and engineered tread patterns, rather than concern for ride like a vehicle tire.”

5. How old are the tires? Tires age even just sitting. At a tire conference earlier this year, Davis had a conversation with a leading trailer tire manufacturer who told him that trailer tires lose one-third of their capacity over the first three years of life, whether on the road or not.

Most tires have a five- or six-year life span depending on usage. “After six years a tire may look like it’s got a lot of tread left, but weather checking and dry rot are tire killers,” says Davis. “Sometimes they break down from the inside out making

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Contact your independent Bee Line sales representative to add alignment to your dealership’s services. Call 800-728-7828.

John “JD” Davis, owner of JD’s Auto and Trailer Repair, says it is a great feeling to know his business fills a needed service niche in the Chicago area.

MTD June 2018

age the only way to determine the tire’s true life span.”

6. Inspect and replace the spare. Many people believe their spare tire will last the life of the trailer if never actually driven on the ground. “We have witnessed this not to be true several times,” says Davis. “You must check the age and wear of the spare tire right along with every other tire on the trailer. This assures you are setting your customer up for the best-case scenario if they have the misfortune of getting a flat or experiencing a blowout. You assure they have a spare that will adequately carry the load and is road worthy. And if they don’t have a spare tire, that sale is a no brainer!”

our recommendation to replace the spare as well,” says Davis. The spare tire was inflated to proper pounds per square inch.

While traveling it split open due to dry rot, even though it never rolled on the ground.

“The customer returned right after their trip to show us what happened and stated we should have listened to your recommendation and always will from now on.”

When customers need five new tires on their trailer they can expect to pay between $400 and $600 on average. Says Davis: “We always assure people that when they need tires, it is money well spent to increase the life of their trailer. If they let it go until next year not only are they risking tire failure but also potential trailer damage incurred during a blow out.” ■

HOW ‘TIRES ALMOST SELL THEMSELVES’ When consumers understand the importance of and the reason for tire maintenance and replacement, tires “almost sell themselves,” according to Davis. He shows customers actual examples of tire failures to explain and emphasize tire-related safety issues.

For example, a tire failure from 2015 provides a valuable lesson. A customer had brought his trailer in for a general service, including a 16-point trailer inspection.

“Our inspection includes documenting not only the condition of the tires, such as treads, signs of dry rot and other damage, but also the date of tire manufacture,” says Davis. During the inspection, it was noted the tires on the trailer were worn and in need of replacement. It was also noted the spare tire, although never having been on the road, was 10 years old.

“The customer made the decision to replace the tires on the trailer, but declined

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John “JD” Davis learned how to service trailers from his father, Jim, and opened his own shop, JD’s Auto and Trailer Repair, in 2010, near Chicago.

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Commercial Vehicle Tires | www.continental-truck.com

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Commercially Viable Continental upgrades solid tire compound Continental has updated its solid tire offerings with a new Plus compound that combines the perks of high mileage with low rolling resistance. The SC20+ model combines the advantages of its predecessors, and with the Plus compound, the tires offer higher mileage like the SC20 Mileage+ with low rolling resistance like the SC20 Energy+.

The SC20+ is especially useful on uneven surfaces such as paving slabs or cobblestone pavement. The profile design offers high traction, while the tread provides maximum resistance capability to punctures and cuts, which reduces wear and extends tire life. This tire is suited to intensive use in both indoor and outdoor environments.

CONTINENTAL AG www.continental-tires.com

Countrywide adds to trailer tire lineup Countrywide has expanded its line of trailer tires, and in response to customer demand the company is adding new sizes and higher ply options. The RubberMaster 17.5 and 19.5 all-steel trailer tires feature a shallow tread design that the company says produces better stability and longer tread life. The 17.5 sizes are available with 16 or 18 plies, while the 19.5 sizes are available in 14 or 18 plies. The additional plies are needed to accommodate the bigger and heavier equipment people are hauling. The ST tires also feature a warranty from the company.

COUNTRYWIDE TIRE AND RUBBER CO. www.countrywidetire.com

Petlas expands industrial tire offerings Petlas has added radial grader, earthmover and loader tires to its industrial and off-the-road tire range. In the radial OTR range, the Turkish tire manufacturer is offering Ptx ND31, a multi-purpose radial industrial tire developed especially for backhoe loaders used in construction areas. It provides traction, longevity, resistance to damage and high carrying capacities. Petlas says the Ptx ND31 is designed for all industrial heavy-duty needs and is suitable for all digging and loading operations under vehicles such as telehandlers, compact loaders and backhoe loaders. The Ptx ND31 is available in sizes 340/80 R18, 440/80 R28, 405/70 R20, 460/70 R24 and 400/70 R20.

PETLAS TIRE CORP. www.petlas.com

Yokohama drive tire delivers long-lasting results Yokohama has launched a fuel-efficient long-haul drive tire: the TY577 MC2. The SmartWay-verified tire comes in sizes 295/75R22.5, 11R22.5, 285/75R24.5 and 11R24.5, and is also offered in 16-ply construction. The TY577 MC2 combines an ultra-deep tread pattern with Yokohama’s MC2 technology, which minimizes the effects of heat on the casing and tread, providing extreme low rolling resistance to reduce fleets’ cost-per-mile. Besides fuel efficiency, other benefits of the TY577 MC2 include long tread life with a 30/32-inch deep groove depth that delivers a firm and stable road grip while maximizing run-out mileage. A durable casing leads to improved retreadability.

YOKOHAMA TIRE CORP. www.yokohamatruck.com

Cooper puts its name on TBR tire lines Cooper has released three lines of Cooper-brand truck and bus radial (TBR) tires. Cooper TBR tires were developed for fleets to reduce their overall tire program costs and are offered in three series based on application — Pro Series for long-haul, Work Series for regional-haul, pickup and delivery, and Severe Series for mixed service. Cooper commercial Pro Series tires are built with proprietary compounds and tread designs that provide a balance of fuel efficiency and long miles to removal, while Work Series tires balance fuel efficiency and tread life with scrub resistant properties. The Severe Series is engineered for the most demanding applications, with tires built to withstand heavy scrub and cut/chip environments.

COOPER TIRE & RUBBER CO. www.coopertire.com

Agrimax V-Flecto resists wear at low pressure BKT has developed an extensive tire range for a variety of applications on the farm. The Agrimax V-Flecto (size VF 710/60 R 42 NRO) features a mix of technologies that enhances the performance of latest-generation tractors on any kind of terrain. The tire features reduced soil compaction, lower operating costs and increased load capacity. Farmers can preserve the soil thanks to its optimized footprint on the ground and a 10% larger tread profile. The V-Flecto also maximizes load capacity with unchanged inflation pressure. It can transport 40% more weight compared to a standard tire of the same size and with the same recommended rim.

BALKRISHNA INDUSTRIES LTD. www.bkt-tires.com

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MTD June 2018

A G T i r e Ta l k

A breath of fresh air TIRE INFLATION SYSTEMS WILL KEEP FARMERS IN THEIR SEATS

By

James Tuschner

Modern Tire Dealer has partnered with AG Tire Talk to provide answers to the insightful questions farm tire dealers have about farm tire technology. This is the third in a series, which is designed to help agricultural tire dealers better connect with their customers. A trending question followed by an abridged version of the answers will appear in our Commercial Tire Dealer section every other month; for the complete answers, check out www.agtiretalk.com!

QUESTION: Do you foresee variable air pressure systems becoming popular on U.S. agricultural equipment? If so, how is tire performance affected, and what yield, traction and transport benefits can growers expect to receive?

DAVID GRADEN, operational agriculture market manager: Variable air pressure systems allow a machine operator to adjust tire inflation with the simple touch of a button to optimize operational efficiency between field and road based upon preset parameters. This type of system will absolutely become more and more popular in the near future, as it will ultimately provide a combination of superior traction with the lowest possible soil compaction while in field.

In fact, Michelin is one of many companies investing in variable air pressure systems through the acquisition of two leading tire inflation system companies, PTG (PTG Reifendruckregelsysteme GmbH) and Teleflow S.A.S. (Michelin purchased the two companies in 2017.) Michelin has also successfully invented and launched the EvoBib to specifically work with tire inflation systems. The Michelin EvoBib, a “2-in-1 tire,” was created with a patented tread pattern and casing technology that allows it to change its footprint and profile more than 20% and increase traction up to 50%, according to the inflation pressure.

Very soon, I imagine we will see variable air pressure systems becoming fully automated so operators won’t even have to press a button. These systems will also close the traction gap between tires and tracks dramatically, at a significantly lower cost.

JAMES CROUCH, marketing specialist, Alliance Tire Americas Inc.: Variable air pressure systems, or CTIS (Central Tire Inflation Systems), will almost certainly

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These EvoBib rear-axle tire footprints clearly show the difference between optimal field air pressure (left) and road air pressure (right).

gain popularity in the U.S. market. They are already becoming common in the European market and are being offered directly from the OEMs. The reasons for their increase in popularity and inevitable acceptance span from increased fuel efficiency to reduced soil compaction, but ultimately all the benefits revolve around operating a tire at the exact correct pressure for the load and speed imposed on the tire.

The challenge for ag tires without CTIS is that they are almost always over-inflated out of necessity and safety.

For example, consider a MFWD (mechanical front-wheel drive) tractor on duals pulling a center-fold planter. This machine will travel to the field at 25+ mph, but only move at 6 to 9 mph once it gets in the field.

In this example, the rear tires on the MFWD would likely need to be set at 35 psi for safety when hauling the folded planter down the road. When the rig gets into the field, the pressures could be reduced to 10 to 14 psi because the full load from the planter would no longer be imposed on the rear axle and the speed would be dramatically reduced.

But in reality, very few farmers are going

to take the time to get out of the machine and reduce the air in their tires once they pull into the field. This time-consuming task would be completed automatically with a CTIS system.

DAVE PAULK, manager of field technical services, BKT USA Inc.: I do see variable air pressure systems becoming more commonplace on equipment as the prices get more affordable. They are expensive to buy and install, but should pay for themselves over the life of a high horsepower tractor. Maintaining correct air pressure is so important to ensuring that all the right things happen with a tire.

Most tractors that would use a variable air system would use radial tires. Radial tires require a better air management program than bias-ply tires do. Various tests have shown that incorrect air pressure can waste 20% to 40% engine power through slip and increased rolling resistance. Incorrect air pressures can also lead to power hop problems.

By using variable air systems, this ensures that the tires maintain correct air pressures without the need to continuously check air pressures.

MTD June 2018

SCOTT SLOAN, ag product manager/ global LSW, Titan International Inc.: I do believe we will begin to see more and more onboard inflation systems showing up in the U.S. in the next five years. As precision farming presses on from the science of the seed, application and condition standpoint, growers are going to be looking for other opportunities to improve machine performance.

As tire technology has evolved with deflection technologies like IF and VF, it has enabled growers to run at lower inflations up to 40% lower.

However, inflation pressure for transport may be different than inflation in the field. Growers will not get out of their machine to drop inflation pressures for 20 minutes to operate in the field, then re-inflate for another 30 when they get back on the road.

Knowing this, we as the tire industry educate them to inflate the tire for the worst case scenario. This eliminates the possibility of damaging the tire due to an overloaded and underinflated condition. By doing this the grower is giving up footprint area in lighter

Facebook: Vipal Rubber Corp

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conditions such as planting, which may hinder the yield.

The idea of the onboard inflation system is that it allows the grower to easily and relatively quickly adjust the inflation pressures in the tires from the comforts of the cab. This then allows them to maximize the tire’s footprint based on the load for each individual task, hence reducing compaction and potentially increasing yields.

Cost, however, is still a hindrance for the technology. Aftermarket systems are approximately $15,000, and at $3 corn the decision to pull the trigger on the system relies greatly on that customer’s idea of the chances of them recouping their cost in additional revenue.

BRADLEY HARRIS, manager of global agricultural field engineering, Firestone Ag Division, Bridgestone Americas Tire Operations LLC: Yes, central tire inflation pressure systems (CTIS) will become more popular on agricultural equipment in the future. When properly used, these systems can lead to improved traction in the field

and reduced soil compaction, which can improve crop yields. These systems allow farmers to quickly manage the inflation pressure in the tires when the axle weights on equipment changes between field and the road. This is why CTIS systems are becoming popular in Europe.

A CTIS system makes sense for tractors when the axle weight changes between road transportation and field operation. The most common scenario in North America would be the planter tractor with a 2-point mounted, front fold planter. During road transport, the planter wings fold forward and the planter weight is carried on the rear axle of the tractor and only four tires on the planter. Weighing a 235 horsepower MFWD tractor with a 16/32-inch row front fold planter, the rear axle weight of the tractor is around 27,000 pounds during road transport.

When the planter is unfolded in the field, the weight of the planter is now taken off the rear of the tractor and is being carried primarily by the eight tires on the planter.

Now the rear axle weight of the tractor is 16,500 pounds. With dual 480/80R50

www.vipal-usa.com

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A G T i r e Ta l k tires on the rear of the tractor, the farmer would need to set the inflation pressure to 23 psi to carry the 27,000 pounds for road transport. When the tractor is the field, 23 psi is an overinflated condition to carry the 16,500 pounds. Having the higher inflation pressure will not damage the tire, but it does reduce the tire’s footprint. With a smaller footprint, the tire cannot fully transmit power to the ground. This reduces traction in the field and increases fuel consumption.

With a CTIS system the farmer could inflate the rear tires on the tractor to 23 psi on the road, and when they get to the field the inflation pressure could be easily lowered to 12 psi. This would give the farmer the optimal footprint and all the tire to generate the maximum traction.

NORBERTO HERBENER, OE applications engineer, Trelleborg Wheel Systems Americas Inc.: Because farmers are concerned about reducing soil compaction and increasing their equipment’s effectiveness, maintaining the right tire inflation pressure is a must. The good news is that tires have

evolved a great deal, technologically speaking, and behave according to their construction (design), inflation pressure, applied load and working speed in an interconnected way. If set up correctly, tires will perform as expected.

The first step is knowing the load or weight the tires will carry and the speed that will be used to carry that load. With this information farmers can adjust the inflation pressure to gain the highest tire efficiency. What are the goals? The largest footprint for the lowest compaction, with the lowest slippage (due to more lugs being on the ground). Balancing floatation and grip are key. While this sounds easy, with constant changes to the loads and speed of farm equipment, it isn’t. This is where variable inflation systems come into play and will become the future standard. Many equipment manufacturers are collaborating with tire manufacturers on central tire inflation systems (CTIS).

The next evolutionary step is a constant monitoring and changing air pressure system adapting to load and speed changes in real

time and inflating or deflating tires as needed.

Imagine a combine with the grain bin filling, unloading and changing speed depending on the local yield. In this direction Trelleborg presented the VIP System (awarded the Gold Medal for Innovation at the 2017 SIMA Show in Paris, France). This self-contained system continually monitors load changes and adjusts tire inflation pressure by using its own compressor, mounted on the tire hub, to maintain the correct pressure, largest footprint, lowest soil compaction and best traction possible.

This system reduces fuel consumption, slippage and working time, while saving the farmer from checking air pressure constantly and allowing for better crop conditions and yield.

As an additional benefit, using the tires under the conditions for which they were designed will help them suffer less stress and last longer, as they will be used at their peak performance capacity. ■ James Tuschner, founder of AG Tire Talk, is a 25-year tire industry veteran.

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MTD June 2018

Tire Pressure PHOTO COURTESY OF PRESSUREPROA

Tire pressure management:

The next step

HOW TPMS AND ATIS TECHNOLOGIES MEET FLEET NEEDS By

Jack Roberts

More and more information management options are becoming available today as tire pressure management systems begin to integrate with telematics and connected vehicle systems.

T

ire pressure monitoring and inflation systems are accepted as a proven way for fleets — either themselves or with the help of commercial tire dealers — to manage one of their biggest consumable items and better ensure safe operation on public roadways. These systems continue to evolve, adding capabilities and functions that increase their effectiveness.

Vanessa Hargrave, chief operating officer for Advantage PressurePro LLC, notes that tire pressure monitoring is not new and has been on a steady path of improvement since it appeared over two decades ago.

“Over our 26 years in the market, PressurePro has witnessed huge changes in TPMS capabilities, as well as changes in customers’ needs,” she says. “At first, legacy TPMS simply read and reported tire pressures to an in-cab reader. While a revolution in

itself, as this capability allowed users to monitor tire performance from the safety and comfort of their cab as well as allowed them to continuously monitor the same performance while on the move, today’s units have greatly expanded on features and capabilities.”

Today, Hargrave says, PressurePro has expanded its TPMS capabilities to meet changing fleet needs, moving beyond providing real-time tire pressure and temperature readings. Expanded alerts and information also include two different levels of lowpressure warnings, a high-pressure alert, an upper temperature alert and a cross-axle alert.

On top of monitoring, automatic tire inflation systems monitor tire pressure in comparison to a preset target pressure and automatically inflate tires whenever the detected pressure is below the target. And today there are systems available for tractor

drive axles in addition to the trailer tire systems that have been around for some time.

Typically, an ATIS (automatic tire inflation system) uses a status light to alert the driver that the system is delivering air to the tires, says Tiona Campbell, program manager, controls, for Hendrickson USA LLC. “These systems typically do not report out actual tire pressures, nor can the driver adjust the system target pressure from inside the cab. Most ATIS draw air from vehiclemounted (air supplies), while some draw air directly from the environment via a self-contained pump.

“Both styles are only capable of inflating tires found to be below the target pressure.

They are unable to relieve air from overinflated tires.”

To alleviate this problem, Campbell says Hendrickson’s next generation Tiremaax Pro advanced automatic tire pressure control

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Tire Pressure

MANAGING THE DATA Of course, being able to get more real-time data about your tires can be overwhelming if you can’t identify “actionable” information you can use in the shop.

Peggy Fisher, president of TireStamp Inc., says her company and others are well aware of the need to streamline information coming into fleets.

She says tire pressure monitoring and management systems will integrate further with telematics systems in the future, eventually allowing fleets to have improved visibility and control over developing tire situations.

With that in mind, she recommends fleets take into account what kind of data they will be able to access.

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PHOTO COURTESY OF CONTINENTAL TIRE

system will not only address under-inflated tires but also over-inflated tires.

“It can automatically provide air to a tire found to be below the preset target pressure, and it can respond to changes in ambient temperature by relieving air from a trailer tire found to be above a preset upper threshold,” she says. “Tiremaax Pro can also equalize tire pressures across all wheel positions. All of this is done automatically, with no driver intervention required.”

Even more capabilities are coming. For instance, Dana Ltd. intends to introduce an active-inflation component to a TPMS next year.

“Similar systems have been in place on trailers for several years now,” says Steve Slesinski, Dana’s director of product planning for the commercial vehicle market. “But with a trailer axle, you’re basically routing the system though a big, hollow, tube. Power unit axles and their gearing are much more complex to design around. But we’ll have a viable solution for tractors and feel that the industry will respond and accept this technology as it did with trailer systems.”

Slesinski says Dana’s research shows that fleets typically experience one unplanned “tire event” a year per truck at a cost of around $700 for service and repairs. “And that’s without factoring in an additional $500 to $1,000 in downtime costs.”

Trey Thompson, digital solutions field engineering leader for Continental Tire the Americas LLC, says many tire pressure management systems today are stand-alone systems with no ability to aggregate data, see data history, or view the data remotely.

But, he adds, connectivity will be more and more common in the future.

Continental’s new ContiPressureCheck system uses remote sensor readings to collect data and transmit it to any fleet location on the planet for evaluation.

“The information you’re getting should be useful and not overwhelming. On the other hand, these systems can provide crucial data fleets need to make informed maintenance decisions. And if all you’re getting are alerts, you’re missing out on a great deal of data.”

To help, Fisher says TireStamp has an app that allows technicians and managers to check on a vehicle on demand. Managers can use this app to: • see where the vehicle is, • see what service it needs, and • prioritize the service that is conducted at that location.

“We also provide the fleet with several useful reports that do not overwhelm with too much data,” she adds.

Likewise, Hargrave says PressurePro has integrated its system with PeopleNet, Omnitracs, Geotab and other telematics providers, as well as RS232 and CANbus (J1939) abilities. “In doing so,” she says, “we’re able to easily integrate our technology and read via tethering or vehicle networks to provide complete and easy-to-use integration options along with our advanced analyzation tools, including our newly released Automated Data Logger software, so users can analyze tire performance data and recognize tire performance trends and patterns.”

Continental can integrate its ContiPressureCheck TPMS with PeopleNet or Zonar so users of those telematic platforms can view tire data inside their telematics portal. But it has gone beyond that with its

new ContiConnect remote tire monitoring platform, which allows tire data to be accessed remotely by back office personnel every time trucks return to the fleet yard.

“The yard reader station collects the data and passes it to a web portal, where the data can be viewed from anywhere in the world,” Thompson says. The web portal features audible and visual alerts if a tire experiences low pressure or high temperature; it also can trigger text message and email notifications of the alert.

“This notification capability means that a fleet manager, maintenance personnel, or tire service provider can be alerted to the problem even if they are not constantly monitoring the web portal,” he says.

“While significantly more data is becoming available across the trucking industry, customers are becoming less interested in having it reported to them,” says Judith Monte, vice president of marketing for Aperia Technologies Inc., which makes the Halo automatic tire inflation system. “The future of tire management is not about reporting data to customers, but transforming data into insights and automatically taking action on them.”

Monte says the most advanced TPMS solutions today provide insights to fleet managers to be able to take action, but the future is enabling fleets to streamline operations by automatically taking that action on the data on their behalf. ■ Jack Roberts is senior editor of MTD’s sister publication, Heavy Duty Trucking.

MTD June 2018

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Counter Intelligence

ZAT Method revisited HOW TO CULTIVATE CRITICAL CUSTOMER FEEDBACK By

Wayne Williams

C

ustomers need tires and service, and you need to sell them. Most of the time it’s pretty easy. A customer walks into your store and says, “I need four of your best for less,” and boom, it’s done! You ask, “Would you like road hazard protection and an alignment?” And they say, “Sure. Why not?” without even asking the price. Life is good.

Other times, it’s a bit more work. But not really. Customers either buy or they don’t. I think it’s hard for a customer to walk out of a store. They know you sell tires and service, and they have demonstrated a level of trust just by showing up. When you really stop and think about it, it’s actually difficult to lose a customer who’s standing at your counter unless they’re asking for work you or your team is not qualified to perform.

Customers need to know that you care, and they need to feel levels of trust before they authorize you to work on their vehicle.

When making a sales pitch or presentation, it’s important to glean information from the customer. It’s important to know that the customer is “tracking” with you. One way of doing this, of course, is by asking questions and listening for clues. I call it “the ZAT Method.”

The ZAT Method was originally birthed from a training exercise years ago when we were looking to fine-tune and improve our in-bound phone script for quoting tire prices over the phone. I introduced you to the ZAT Method way back in 2011. I noted that when quoting tire prices over the phone, you can’t read the caller’s body language, so we decided to add a simple question to the phone script. The question was, “How’s that sound?”

The thought was that midway through the call, we would ask the customer to give us some feedback by asking, “How’s that sound?” Of course, when you say it fast and repeatedly, it comes out “How’s ZAT sound?” We adopted it, and it worked. Anytime your customer gives you additional feedback, it’s valuable.

I’m going to expand a bit more on the ZAT Method today and add three simple components.

Atomization: Break it down.

Personalization: Make it personal.

Summarization: Put a bow on it.

The definition of atomization: To treat as made up of many discrete units.

This was the original thought when we were developing the phone script. As a sales person and potential customer move through the phone script, there are certain segments or “units” that must be done in order. This is so critical to building trust and confidence and closing the sale. Atomization is breaking down the goal (making a sale) before the actual engagement, being prepared and confident.

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I am not a fan of strict scripts, but we must realize that callers or visitors have their own personal pathway to purchase, and as counter sales staff, we must have our own personal pathway to close. These pathways must successfully intersect to consummate a successful sale and customer experience.

I’m suggesting that you not only prepare, but that you develop your best personal solution by atomizing how you present. Break it down, first for yourself, then with customers in mind. Once you break it down, break it down again and again until you are highly confident of your ability to execute at new higher levels.

Secondly, personalization: Make it personal. Everything I read today about customer service references the concept of personalized service. The first and most important piece of personalization is using the customer’s name. To get your customer’s name, you must first offer yours. “Good morning. My name is Wayne. May I have your name?”

Use their name, but don’t overuse it (sounds phony). Speak to their concerns and needs. One customer might be price driven.

Make sure you make price comparisons.

A price is only high or low by comparison. Some customers are more concerned about warranty.

Again, speak thoroughly to their concerns seeking to gain understanding of how the customer is tracking by asking, “How’s ZAT sound?”

Thirdly, summarization: Once you’ve broken it down and are prepared, once you have personally met the customer needs and concerns, it’s time to close the sale. It’s time to summarize and close.

Summarization is a soft landing as opposed to a hard close.

Both work, but in today’s environment and sensitivities, it’s better to summarize and close in harmony and agreement.

The ZAT Method is actually about discovery and assistance.

In discovering how the customer is tracking, understanding, and feeling, we can make the necessary adjustments during our presentation and address the areas that matter most to each individual customer, increasing our conversation rate and customer satisfaction. How’s ZAT sound? ■ Wayne Williams is president of Wayne Williams Marketing, a marketing and branding company with emphasis on retail “counter intelligence.” Located in La Habra, Calif., he can be reached via email at wayne@waynewilliamsmarketing.com.

MTD June 2018

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European Notebook

Are all-season tires the solution to the summer/ winter situation in the UK? By

John Stone

A

lthough at the moment the UK remains part of Europe, the country’s attitude toward the benefits of having both winter and summer tires fitted to their vehicles during the course of a year could not be more different than their colleagues in Europe.

Unlike their European counterparts, UK drivers just do not see the value in changing their tires from summer into winter tread patterns and back into summer tires, and really the very unpredictable weather conditions throughout the country are the major reason.

As the conditions in the winter months are not generally severe and sometimes the number of really hot days can be counted on one hand, drivers see no reason to change their tires.

I am aware of the frustration this (some would say) misguided approach causes enterprising UK tire dealers who just cannot convince their customers of the benefits of following the lead in Europe where tire storage between the seasons is becoming big business.

I recently spoke with a sales manager at a leading tire manufacturer who explained, “UK drivers remain reluctantly hesitant to switch their tires to suit a particular weather season and we have so far failed to convince and educate our customers about how important it is to have the correct compounds fitted when driving in differing weather conditions.

“Even now the UK tire industry as a whole continues to promote the well-worn message that it isn’t just about driving on snow, but the precise way that rubber performs in low temperatures and on a cold, rainy day, drivers just do not realize that the rubber compound of a summer tire will never perform as well because of the difference in the compound,” he said.

“For example, on a typical winter day in average cold conditions there will be around a 10% to 20% improvement in stopping distances with cold climate tires fitted to a vehicle, which can make a huge difference to life or death in an accident.”

It is also interesting to note that enterprising retail operations have over the past couple of years introduced a “tire hotel” service to store drivers’ summer and winter tire between seasons, which has been established in Europe for a number of years now. However, this gesture has mainly fallen on deaf ears as many motorists mistakenly believe it to be a gimmick to just sell more tires.

This totally “blinkered” attitude to winter and summer tires in the UK is why the market has tried so hard in the past few years to introduce and market all-season tires as a positive alternative to winter and summer tires. I have noticed that a growing amount of manufacturers, wholesaler/distributors and retailers are increasing promoting their stocks of all-season brands with a message that all-season tires have exactly the same markings as winter tires giving them a high standard of grip while the tread patterns are also suitable for summer tire driving.

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All-season tires are marketed in the UK as a positive alternative to winter and summer tires. Cooper Tire and Rubber Co. recently unveiled its Discoverer AT3 family of tires at The Tire Cologne international trade show in Cologne, Germany. The line, which includes three distinct all-season, all-terrain tires for SUVs and light-duty pickups as well as medium- to heavy-duty trucks, will be available for consumers later this summer.

At the moment the all-season market appears to be gradually growing year-on-year but it still has a long way to go before establishing itself as popular answer to the UK winter/summer tire scenario.

BREAKING NEWS As I write this column for the June edition, it has just been announced that the European Union (EU) will be applying anti-dumping duties to certain truck and bus tires that are produced in China when entering the European Union.

The Official Journal of the EU (Volume 61) which was published recently, states that as per Commission Regulation (EU) 2018/683 of May 4, 2018, provisional anti-dumping duties of between 52.85 euros and 82.17 euros per tire will be levied on new and retreaded tires for buses and commercial vehicles with a load index exceeding 121, which currently falls within CN codes 4011 20 90 and ex 4012 12 00 (TARIC code 4012120010), and originating in China.

This news is not unexpected and there have been rumours of its introduction during the past few months. Now it is official and Europe has finally joined North America with anti-dumping duties.

I am sure this latest development will be followed by a number of reactions and comments throughout the UK and Europe from both sides.

Therefore, it goes without saying that my next column for July will center around these new anti-dumping levies and bring readers up-to-date with the current situation. ■ John Stone has been working within the global tire industry for the past 27 years. In 2004 he launched his own consulting company, Sapphire Media Service, which caters to business media clients around the globe. Stone also writes for tire and automotive-related publications in Europe, South Africa and Asia.

MTD June 2018

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Consumer Promotion

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Do, delegate, delay or dump LEARNING HOW TO SPEND YOUR TIME EFFICIENTLY By

Dennis McCarron

I

t’s been said in this column before that “time is the new world currency.” Time is the only truly finite, or limited, resource to a human being. You can never create it, like you can wealth.

Time only ticks away; it never increases.

In the next few years, the focus is increasingly on efficiency, which by definition is to accomplish something with the least waste of time. Running a business is fraught with time wasters.

Employees may come to you with problems they can readily solve on their own, customers may want to speak “just to you” about getting their oil changed, and vendors always want face time to sell you the latest gadgets. Let’s talk about spending your time like the precious commodity it is.

DO Do items for small business owners are the critical tasks of keeping the business alive. Think of Do items as the oxygen for the business. These are important, urgent, and must be priorities each and every day. What is a Do item? Do items are things that only the owner can accomplish whether they be decisions about cash flow, making payroll clear on time, or monitoring the systems

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that make the company hum – or in crisis, crash. Do items are also the things that owners have a passion for. Getting your motor running is vital to the long-term success of the business.

Owners should prioritize these tasks over everything else in their day and 80% of an owner’s time each day should be spent on Do items. When possible, begin these items first or as early in the day as possible so that decisions can be made in other areas of the company.

DELEGATE Delegation is the art of assigning work to others in the company that will benefit the company (someone doing work for you) and the person doing the work (it expands their skill set, grows their influence, challenges them, and increases their worth to the company).

Delegated work is often work small business owners keep to themselves because they have a belief that “only I can do this right/fast/on time.” That is often true. The only reason it’s true is because the owner hasn’t allowed someone else to learn the task.

Delegated work is important. But it’s not mission critical, and MTD June 2018

that is what separates a Do item the owner is passionate about and a Delegate item. It’s something the owner can do, but should allow others within the company to grow into. If it gets messed up, the owner can correct, or spend the time teaching how to correct it.

Delegation’s first step, handing over the power and authority to someone else to do the work as they see fit, is often the hardest step. “Will they do it as well as I do it?” “Will they do each step the same was as I do?” are often the questions holding us back from delegating.

The questions we should be asking ourselves are “Is the end result going to be the same?” “Are the same methods generally going to be used?” and, just as importantly, “Will this free-up crucial time for me to be doing other important work?”

DELAY

©2018 CMA , LLC .

* Based on a 2016 brand s tudy by a major indus tr y publication

These are items that are not critical to the businesses success, yet have potential to improve it. They simply aren’t important enough today to be chewing into your time (which should be spent on a Do or teaching Delegated items.

Delay items often hang around our minds, maybe sometimes causing some anxiety because we can’t seem to get around to making a decision. Sometimes we need more information, sometimes we don’t have all the resources. Sometimes, we just don’t have the impetus to make the call. Either way, the best way to handle delay items to make a call on when you will make a call. Get it off your plate, and onto your calendar.

The decision should be how long can I put this off until it rises to the level of necessity? It might even simply rise to Delegate. Either way, stop letting a hundred minor decisions consume your day, and just push them out on the calendar so you can focus on the things that matter: the people and the assets of the organization.

DUMP How many things do you do every single day that if you stopped doing, nothing would happen? That report that you make or read every day and email out? Does anyone read it anymore? Are you doing something today that you are simply do because you have always done it?

This category is important because often our day is consumed by many little things that don’t add up to accomplishing any real results that affect the business. Often, they seem important but it’s usually just a legacy item.

When was the last time you looked at what you do every day and took something off the list? Too often, we simply continuously add things to our daily routine, and we end up sloppily trying to accomplish too many things, when in fact, if we focused on what truly mattered and handled the urgent and important things with quality, that would add more to our bottom line. ■ Dennis McCarron is executive director of Dealer Strategic Planning Inc., a company that manages multiple tire dealer 20 Groups in the U.S. (www.dsp-20group. com). To contact McCarron, email him at dennis@dsp-20group.com.

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Focus on Industry

BELLE TIRE:

100 stores is the ‘tip of the iceberg’

DEALER HAS ALL HANDS ON DECK IN INDIANA

By

Joy Kopcha

I

n the midst of a major expansion blitz in the state of Indiana, Belle Tire Distributors Inc. hit a milestone. The Michiganbased tire dealer opened its 100th store.

On April 30 Belle Tire opened its doors in Kokomo, Ind., and on May 12 company executives gathered for the store’s official grand opening celebration.

But in an interview with Modern Tire Dealer, Belle Tire President Don Barnes III says the company isn’t taking a break from its long-term growth plans to dwell on the achievement.

“It’s an exciting milestone for us. I

were all near South Bend in the northern part of the state.

Kokomo is Belle Tire’s 10th location in the state. Three more stores are under construction, in Warsaw, Marion and Anderson, and the company is entering the state’s largest market of Indianapolis.

Belle Tire has sites in Greenwood and Southport. By the end of 2018 Barnes says Belle Tire will have between 15 and 18 stores in Indiana.

Barnes says Belle Tire sees opportunity in Indiana because of the tire industry’s tendency to be regionalized and thus “very

Less than three years after entering Indiana, Belle Tire has opened its 10th store in the state at 2333 E. Markland Ave. in Kokomo. It’s the company’s 100th store overall.

don’t want to underplay it, but what really excites us is we feel this is the tip of the iceberg.

“We’re excited to continue to build out the rest of Indiana, as well as look for future growth in markets that are contiguous to where we currently have locations.”

The company is in the midst of an aggressive move into the Hoosier State.

When Belle Tire crossed the border into Indiana in the fall of 2015, it was the first time in 30 years the company had entered a new state. (Belle Tire has four stores in northwest Ohio near Toledo.)

The first four Belle Tire stores in Indiana

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fragmented.” The company also is looking to move into bigger markets, he says.

“We’re going to continue that growth pattern through the new stores throughout the state of Indiana and future markets to come.”

In the last decade most of Belle Tire’s growth has come through greenfield expansion, but Barnes says acquisitions are an option, too. They were a key part of the company’s growth in the 1990s, and “what would be important to us is that it’s a great culture fit to us and be somewhat close to our existing markets to leverage our synergies.”

Barnes wouldn’t go into detail about

the company’s plans for 2019 and beyond, other than to say the aggressive growth will continue. That could include filling in gaps in markets in Michigan, Indiana or Ohio, or other nearby places.

In Indiana, the building blitz has led to an intense hiring blitz. The same week the Kokomo store opened, Ray Turner Jr., director of retail operations in Indiana for Belle Tire, was working recruitment events in four different cities the other four days of the week.

Barnes says the company has found “a really good mix of local people” to work in its stores throughout the state. “We’re a big believer that we need to have stores where people currently live. It’s a big emphasis on hiring local, but also still supplementing (the staffs) with existing Belle Tire teammates.

“Our company, our success has always been driven by our people. We’re very, very customer centric, but the reason we’ve been able to be so customer centric is because of our internal customers, our employees.”

Barnes says the company has dedicated resources to help with the hiring, and all of the other support the new stores need.

“We’ve always been a company that doesn’t believe the good employees are out there working someplace else. We as leaders have the responsibility to coach and mentor our team and ultimately create a work environment where people can be managed, have fun, and be passionate about what they do, and see that their work has meaning.

“Our job is to give our neighbors peace of mind and trust and get them back on the road fast and affordably,” Barnes says.

“We’re very confident we can teach people tires; we can teach people service. What we’re specifically looking for are people who have that natural ability to connect and create relationships with customers in order to keep them wanting to come back.” ■ MTD June 2018

Focus on Industry

Gearing up for the 4th industrial revolution HOW WILL ROBOTICS, VIRTUAL REALITY AND AI AFFECT OUR INDUSTRY? By

Greg Smith

M

ost of us know about the industrial revolution, but not too many of us realize that we’re heading toward the fourth industrial revolution.

At this year’s Tire Industry Association Off-the-Road Tire Conference, Chris Rhoades, senior product manager for BKT USA Inc., not only explained what the fourth industrial revolution is, but also how companies could provide value to it as it relates to the mining industry.

Roughly speaking, the first industrial revolution took place in the late 1700s. It was brought about by steam, water and mechanical production equipment. The second revolution took place in the late 1800s with the invention of electricity and mass production. We’re currently in the third industrial revolution that started sometime in the late 1960s with digitalization.

According to the World Economic Forum’s Professor Klaus Schwab in his book “The Fourth Industrial Revolution,” the next revolution will be characterized by a range of new technologies that fuse physical, digital and biological worlds together, impacting economies and industries, even challenging ideas about what it means to be human. Put in simpler terms, it is the use of robotics, virtual reality and artificial intelligence.

Rhoades, who told attendees that he comes from a family deeply rooted in coal mining, going back 155 years, used a few analogies to make his point about providing value. Rhoades said that one year’s production PHOTO BY TIA/PETER KUHN

Chris Rhoades drove home a point about mine safety by showing his father’s hard hat that was worn during his 31 years of mining.

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

of coal from the entire state of Kentucky in the early 1800s was 328 tons. Today, that amounts to one load of a CAT 797 or Komatsu 930 haul truck.

In looking at the history of mining trucks, their hauling capacity and the tires they used, Rhoades was able to point out that not much has changed since 1998, the year the Caterpillar Model 797 was introduced with 63-inch tires and a payload of 400 tons.

Rhoades said the advancements in equipment have come from digitizing — sensors and GPS; dispatch; truck spotting; TPMS; and utilizing object avoidance technology. As an example, the Rio Tinto mine in Australia is expected to expand its autonomous truck fleet by 50% by 2019 and has already moved its one billionth ton.

The use of autonomous haul trucks has led Rio Tinto to increase its hours by 1,000 with a reduction of 15% in load cost/unit.

Rhoades quoted Hitachi’s Atsushi Konishi, managing director, “There are large mining companies that are looking at Australia to implement new digital technologies in order to then replicate them in other regions of the world. Embracing smart technology including digitization and IoT (Internet of Things) in the mining industry is imperative for Australia to maintain its leadership position.”

The World Economic Forum is projecting a digital transformation in the mining and metals industry to be a roughly $400 billion

opportunity. This is a much higher value than is projected for the rest of society. The reason is the impact by integrated platforms, connected workers and remote operations centers that will account for over 60% of this figure.

Rhoades explained that the transformation for those servicing and maintaining tires is progressing as well. In 1996, the original TPMS system was introduced to the industry. He said TPMS only worked if companies were already working on air pressure maintenance programs.

Today, companies are using TPMS and job site studies to further extend the life of tires. As Rhoades phrased it, “we’re talking about safety, digitization, maintenance and speed, which equals productivity.”

Rhoades said the industry has already been tracking a tremendous amount of data about tires, but wondered whether the industry has been using it correctly. “We’ve created a lot of data, but have we created as much value? Are we handing reports to customers? Are we automating it with dashboards? Who is telling the story?”

Rhoades said as the industry moves forward, it must better understand how to measure a tire’s total quantified life. Rhoades said it is easy to calculate cost/hour, but analyzing all of the variables to create a more accurate, automated tire management solution is far more challenging, but it will be the direction the industry is headed as it enters the fourth industrial revolution. ■

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Focus on Industry

225 members, 1,000 locations in all 50 states ITDG CEO REVEALS BIG FIVE-YEAR GOALS AT ANNUAL MEETING

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his past year has seen a number of changes surrounding the Independent Tire Dealers Group LLC (ITDG), but one thing has remained constant, and that’s the continued growth of the group.

Dave Marks took over the reins as CEO and president of the ITDG last August following the retirement of Michael Cox. The industry veteran has been making the rounds to accomplish his “personal goal” of meeting all 147 members with 660 locations in 43 states.

At the same time, Marks has been working with the group’s vendors to “make sure the programs fit and are strong for everyone.”

During the ITDG’s annual meeting and trade show held in Chandler, Ariz., in May, Marks told the 315 attendees (people from 89 members and 52 vendors) that he remains committed to growing the group to 175 members with 750 locations in 46 states by the end of 2019. He also upped the ante by stating a five-year goal of having 225 members with 1,000 locations in all 50 states.

The way Marks intends to do this is “by adding value in everything we do.” Marks is quick to give credit to the ITDG staff members who are making the success happen.

ITDG veterans Chris Barry, senior sales director; Cheryl Bluman, office manager; and two new hires, Sherry Bily, director of programs and pricing, and Tony Garrett, regional sales director — east, have been the guiding force behind the growth ITDG experienced this past year.

Chris Barry, ITDG, and Wes Tatum, owner of Leete Tire, Petersburg, Va., stand with Jeff Harris from Napa Auto Parts during the Gala Reception.

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Greg Smith, publisher of Modern Tire Dealer, was the keynote speaker for the ITDG general session. He provided insight into the changes taking place in the industry’s distribution channel.

Jerry Palanjian and Jessica Rankin of Grand Prix Performance Tire, Costa Mesa, Calif., and Bill Saylors, The Tire Man in Thousand Oaks, Calif., take a break from the ITDG trade show.

ITDG added 10 shareholders this past year from across the country.

Marks refers to the ITDG as “a group of very successful, fiercely independent tire and automotive dealers, dependent on someone like us to secure the programs, pricing and vendor partnerships that will add additional value and profits to their business.”

The total group purchases by members for the past year was $226,628,990, a growth of 7.3% from 2016 with a total volume bonus and dividend payout to members of $8,675,740, a growth of 4.9% from 2016.

During the event, members were told that shareholders of the ITDG captive insurance company earned a dividend of $1,000 per share. The dividend matches the original value of a share when the insurance company was created in 2005 with 40 members.

Currently, there are 25 members. Since its inception, the average annual ROI has been 20%, according to the ITDG. Marks says the state of the ITDG “could

not be stronger, even in the uncertainty of the industry today. We will grow and be stronger and we will be united.”

During the ITDG board meeting, the group took on a new initiative called NextGen. It is a committee that the group has developed to make sure that the younger generation will have a bigger voice in running the businesses and how they should go to market.

According to Marks, the idea came from Clay Miller, former chairman of the board and current owner of Mainstreet Tire USA in Peyton, Colo. “It’s important for business owners to hear what their family members have to say, ‘Dad, we do this,’ and then actually let them implement the ideas.”

During the meeting, 15 to 20 members expressed interest in participating with this initiative. The details of the ways that the committee will engage are still being developed, according to Marks. ■

Chris Barry, senior sales director of ITDG and Dave Marks, president and CEO of ITDG, have aggressive growth plans for ITDG during the next five years.

Kirk Lenhardt, owner of Fat Boy’s Tire & Auto in Cheyenne, Wyo., won the 2017 ITDG Dealer of the Year Award. The award was presented to him due to his success with the group coupled with his outstanding reputation among his customers and vendors.

MTD June 2018

Focus on Industry

On the Road of Change BTS KEEPS ITS RETAIL CUSTOMERS ON TOP OF THE TRENDS By

Bob Ulrich

T

he brochure says it all: “BTS Tire & Wheel Distributors, your one stop for automotive equipment.” And of course, tires.

The wholesale division of Black’s Tire Service recently held a dealer meeting at its headquarters in Whiteville, N.C., to reinforce the importance of wholesale distribution to its retail customers.

Independent tire dealers from North Carolina, South Carolina and Virginia were represented.

Organizers of the event were prophetic. They came up with the slogan, “On the Road of Change” well before the joint venture between Michelin North America Inc. and Sumitomo Corporation of Americas (SCOA), and then Goodyear Tire & Rubber Co. and Bridgestone Americas Inc. Speakers, including Modern Tire Dealer Editor Bob Ulrich, discussed the recent changes in the tire distribution landscape in detail.

BTS inventories the following brands: Americus, Goodyear, Federal, Venezia, Cooper, Roadmaster, Michelin, Kelly, Pirelli, West Lake, Uniroyal, Hankook, BFGoodrich, Mickey Thompson, Continental, Double Coin, Falken and Mastercraft. Seven of the brands are backed by associate dealer programs: Falken (Fanatic), Goodyear (G3Xpress), Cooper (Medallion), Hankook (One), Mickey Thompson, Americus and Federal. ■

What do you do when you have three stores competing for tire sales right next to each other, especially when one promotes the “cheapest prices” and the other the “largest inventory”? Frankie Underwood, BTS’ director of sales, said you have to think outside the box to differentiate yourself.

In stressing the importance of stocking inventory, Ricky Benton, owner of BTS Tire & Wheel Distributors, asked the independent tire dealers in attendance a simple question: “How many of you stock a substantial amount of tires?”

“I think that if everyone in this room stayed the same in their business and didn’t change for the good, then we wouldn’t be in business very long,” said Frankie Pugh, general manager of distribution for Pugh’s Tire & Service Centers, a six-store chain based in Greenville, N.C.

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

NASCAR Monster Energy Cup Series driver Timothy Peters signed autographs with the No. 92 BTS car on the premises.

BTS stocks a variety of shop equipment and supplies at its four wholesale distribution centers in North Carolina.

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Focus on Industry

‘It’s critical in the market’ MICHELIN CAMPAIGNS FOR WET TRACTION TESTING ON WORN TIRES By

Bob Ulrich

I

n 2007, The Tire Rack started a fire storm in the tire industry when it supported a minimum 4/32-inch tread depth.

That was in contrast to the generally accepted minimum tread depth standard of 2/32-inch.

The results of Tire Rack’s own wet traction testing were the basis for its decision to promote removing a tire from service at 4/32-inch. It felt the difference in stopping distance between the two measurements was too dramatic to ignore. It was a safety issue, and remains so, said the company.

At the time, Michelin North America Inc. was the only tire manufacturer to respectfully disagree. There was no data to indicate the 2/32-inch minimum led to an increase in accidents. In addition, there were other factors that favored waiting until 2/32-inch of tread remained (see sidebar, “A costly decision”).

The narrative started to change in 2014 when Michelin introduced its Premier A/S passenger tire at the North American International Auto Show in Detroit. Michelin said the main selling feature of the Premier A/S was its ability to retain wet traction as it wears.

Suddenly tread depth itself wasn’t the

focus. Performance, specifically wet traction performance, over the life of the tire was.

Three years later, Michelin is pushing for a worn tire testing standard.

“Michelin believes all worn tires should be tested,” said Andrew Koury, North American brand director for the Michelin brand. “And all drivers need that information. It’s critical in the market.”

JUMP-STARTING THE CONVERSATION Michelin is hosting a global series of events to raise awareness about the importance of worn tire performance in the tire-buying decision. One of the first was a driving event recently held at Michelin’s Laurens Proving Grounds in Greenville, S.C. The presentations by Michelin executives always emphasized one message: Worn consumer tires, defined as tires approaching wear out, should be tested. From new to worn, “they change in ways that are simply not clear to consumers at the point of purchase,” said Eric Bruner, director of external communications.

Tom Carter, technical communications director for product marketing, said there are really only three tire components that lead to good wet traction:

Minimum tread depth The definition varies state to state When the tread depth on passenger or light truck tires is worn down to 2/32-inch, Michelin North America Inc. says the tires have reached their legal limit. That’s the depth at which Federal Motor Vehicle Safety Standards 571.109 (bias-ply), 571.139 (radial) and, in the case of a vehicle with a gross vehicle weight of more than 10,000 pounds, 571.119 require manufacturers to build/mold in tire tread wear indicators.

There is no federal standard that labels 2/32-inch as the minimum allowable tread depth. However, in its 2001 “Everything Rides on It” tire safety campaign, the National Highway Traffic Safety Administration commented on the issue. “In general, tires are not safe and should be replaced when the tread is worn down to 1/16 (2/32) of an inch.”

Minimum tread depth requirements vary state to state, although 42 states follow the tread wear indicator standard. Two states, including California, have a minimum of 1/32-inch. Six states have no minimum.

Continental Tire the Americas LLC recommends tires should be removed from service when the tread depth reaches 4/32-inch — with one exception. Winter tires should be removed at the 5/32-inch mark.

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• an adherent tread compound (“high-grade polymers, high-grade elastomers, high-grade additives, and silica”), • an effective tread pattern (“grooves and edges”), and • a proper contact patch shape. “A rounded contact patch shape will be more efficient in wet than a square simply because you can evacuate water around the contact patch, around the tire.”

Depending on the tire’s design, some worn tires can perform better than some new tires, said Carter.

“When you go buy a tire, all the compound looks black. You can see the tread pattern, but you can’t really see it worn. You can’t see the contact patch. That’s… why we’re trying to start a conversation.”

BOLD STATEMENT The Michelin Premier A/S is uniquely designed with rain grooves that widen as the tire wears. “Hidden” grooves also emerge over time. The result is a tire the company said continues to evacuate water as the tread depth decreases.

Michelin is on record as saying thanks to its new EverGrip technology and a new tread compound featuring “extreme amounts of silica and sunflower oil,” the Premier A/S,

“Worn tires should be tested and drivers should have the information,” says Andrew Koury, pictured watching worn tire testing at Michelin’s Laurens Proving Grounds in South Carolina.

MTD June 2018

A costly decision Why removing tires too early matters In addition to reduced stopping distance, there are other issues to consider when removing tires prematurely, says Andrew Koury, Michelin brand director for Michelin North America Inc. They include the following.

Michelin’s wet traction testing data revealed how various tire brands performed new, at 3 mm (between 4/32- and 3/32-inch) and worn (2/32-inch). “There is a meaningful, significant amount of variation in these stages among all of (the) tiers,” said Eric Bruner, Michelin’s director of external communications.

when worn, stops shorter on wet roads than its leading competitors’ new tires.

At the Laurens Proving Grounds, Michelin tested the new and worn wet traction performance of its Premier A/S against a Tier 1 competitor’s tire. In all cases the new Michelin tire stopped the fastest, followed by the worn Michelin tire.

(It is not Modern Tire Dealer’s policy to reveal the names of competitors’ tires in competitive testing sponsored by one tire manufacturer. When the competing manufacturer was asked by MTD if the tires directly competed against each other, the competitor said it was not an apples-to-apples comparison. The Premier A/S was described as a grand touring allseason tire featuring premium wet traction, while its tire was a “high performance all-season tire with performance emphasis weighted toward responsive handling.”

The competitor then offered up a tire that it felt was appropriate to test against the Premier A/S.) Tire Rack’s view on the 4/32nds versus

“Technology exists to design and manufacture tires to perform well in wet conditions, even when worn,” said Tom Carter (right, pictured with Eric Bruner, center, and Andrew Koury).

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

2/32nds debate hasn’t changed, even after testing the Premier A/S on its home track.

“Premier A/S and its companion line Premier LTX do have some unique features in the tread that go a long way to mitigate the effects of tire wear when the tire encounters that volumetric event,” said Woody Rogers, Tire Rack’s director of tire information.

“But no tire is as good at 2/32 as it is when new. Tire performance in the wet isn’t like gasoline, where the last ounce works like the first gallon. Tire traction in wet evolves as the tire wears.”

Rogers said he has already seen a trend toward full-depth features in the tread, “as all major brands have found the need to maintain as much traction as possible into the late stages of the tire’s wear life.”

TESTING METHODOLOGY Bruner said Michelin’s first goal is to make people aware of how important worn tire performance is. “You can get worn or used reviews on so many other things you buy as a consumer. Why can you not get information about a worn tire? It’s the piece of technology you place your life in every time you get in the vehicle.

“As we make people aware of that problem, and the very practical considerations related to that problem, we believe it will lead to independent third-party tests on worn tires. And we believe as that occurs, our conversation will probably begin leading naturally into what would be the testing methodologies.”

Carter said ASTM (American Society for

Cost to consumers. “Twenty-five billion dollars are wasted every year in pulling a well-maintained tire off the road too early.

The cost to drivers is around one tire every two years or $250. It’s a high cost.”

Cost to the environment. “There are 400 million tires wasted each year by early removal. They have to go somewhere.

Imagine 400 million tires in landfills.”

Koury says the cost in raw materials used to rebuild the 400 million tires removed prematurely equals close to 35 million tons of carbon dioxide emissions globally, “which is equal roughly to the entire New York City’s emissions for six months.”

Testing and Materials) standard F1046-01, “Standard Guide for Preparing Artificially Worn Passenger and Light Truck Tires for Testing,” would make credible wet traction testing on worn tires less burdensome. It’s a good place to start.

“Testing worn tires could be useful,” said Tire Rack’s Rogers. “But the key is to develop tests that are meaningful to the consumer, and replicate what they will experience in the real world after three to four years — or more for high-mileage tires.

“Is shaving a tire the same as wearing it down and exposing it to the environment and heat for that many years? What’s the right depth to test at? Think about going from 3/32 to 2/32. It’s a 33% reduction in depth, and essentially the same reduction in void volume. The impact of remaining tread depth/void volume is not linear. The loss of performance ramps up dramatically as you wear away each of the final few 32nds of usable tread.”

Jim Frady, Michelin’s tire performance team manager, said the ultimate goal is much less complicated.

“We made design choices years and years ago to get to the level of worn performance that we are at today. So the goal is to get the whole industry making those choices, so people are safer.” ■

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Focus on Industry

BIG O TIRES

aims for $800 million in sales in 2018

NEW WEBSITE WILL HAVE ONLINE SALES CAPABILITY By

Joy Kopcha

B

ig O Tires LLC is counting on a single word to help franchisees increase sales and improve the consumer experience inside its 449 stores.

The word: “Yes!” “Tremendous opportunities can open up with that one little word,” says John Kairys, vice president and general manager of Big O Tires. “When we say yes to customers, they say yes to us.”

Saying yes is more than a marketing line or advertising slogan, Kairys says. It requires owners and managers to consider everything from reviewing if a store is

Les and Tina Foster, owners of a Big O Tires store in Gardner, Kan., talk to Chris Schaible, a field sales manager for Continental Tire the Americas LLC, about the tread on a General Grabber tire during the trade show.

properly staffed and open the best hours for service, to studying whether a store creates an inviting environment.

In 2018 Big O Tires, a division of TBC Corp., is rolling out new tools to help its franchisees say yes to consumers. There’s a tool from Marchex Inc. that allows stores to monitor and review customer phone calls. Primary and secondary credit options help consumers with all financial backgrounds pay for the tires and services their vehicles need.

Big O Tires also will unleash a refreshed

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consumer-facing website this fall. The new site will have the capability to sell tires online to consumers, though Brant Wilson, president of TBC’s franchise group, says it’s undetermined when, or if, the company will flip that switch.

“We have the capability. We’re creating the strategy.” Wilson says the company’s current system, which offers the ability to shop for tires and make installation appointments online, is the key. When Big O Tires contacts consumers within 30 minutes of them making an appointment online, Wilson says 85% of those invoices match the dollar amount of the online ticket. “We feel good about that being an important component.”

The company expects all of those tools will help it record $800 million in total sales in 2018, and hopefully extend its record of consecutive year sales increases. Kim McBee, vice president of marketing and advertising for Big O Tires, says 2017 was the fifth straight year of improved sales.

Big O Tires wants to extend its reach in new stores, as well as retention of existing franchises. In 2018 the goal is to open 25 new locations, and renew 90% of the 28 franchise agreements up for review. Kairys says the company already has tentatively secured one-third of the new-store goal.

New-store openings were a big part of the Big O Tires story in 2017. In November franchisee Mark Rhee bought 44 NTB Tire & Service Center locations in Minnesota, Kansas, Iowa and Missouri from TBC and is rebranding them to Big O Tires stores.

That deal helped Big O Tires have a “record-breaking” year, Kairys says.

Fifty-seven new stores opened, giving the company 449 stores in 23 states. By the end of 2017 Big O Tires had crossed into four new states — Ohio, Tennessee, Virginia and Minnesota.

The existing stores did their part, too.

Same-store sales were up 3.5% in 2017,

Credit boosts business One path to sales growth for Big O Tires LLC is paved with multiple credit options for consumers.

Data from Big O Tires credit card purchases shows users make double the number of transactions in a year compared to those who pay cash or use their own bank card. And the average ticket paid with a Big O Tires card is $504, compared to the $180 consumers spend when paying with cash or another credit card.

The card carries an interest rate of 29.99%, but purchases are also interest-free if paid off within six months. Big O Tires says 83% of consumers pay off their purchases within that zero-interest time frame.

The company also is promoting the merits of second-tier financing options to its franchisees. Big O Tires dealer Jerry Tidwell, who was profiled in Modern Tire Dealer’s March cover story on secondary credit, pitches the option to every consumer. In 2017 he recorded $1 million in sales financed through Snap Finance LLC, and Tidwell told Big O Tires dealers at the 2018 convention that Snap financing “has blown up” his store’s buy-two, get-two tires promotions. “We’re signing 20 Snaps a day” during those events, he says. and the company hopes to achieve that same result again this year.

Same stores fell a bit short in one category, though. The goal was to increase alignment sales by 20% in 2017, but the group grew the alignment category by 16%. (The goal is to hit that 20% increase in 2018.)

Wilson says the Big O Tires team helped save 10 stores last year, some of which were in danger of losing leases. In all, the franchise lost five stores overall. Wilson says it’s the fewest number of stores lost since 1996. ■ MTD June 2018

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TPMS

SUBJECT VEHICLES: 2007 – 2014 Mazda3 and Mazda2 vehicles.

RELEARN PROCEDURE? No. SPECIAL TOOLS NEEDED? An M-MDS scan tool may be used for the registration procedure.

The tire pressure monitoring system (TPMS) on 2007 – 2014 Mazda3 and Mazda2 vehicles monitors the pressure for each tire.

If tire pressure is too low or too high in one or more tires, the TPMS will turn on a warning light on the instrument panel and sound a warning beep for about 3 seconds. If there is a system malfunction or a spare tire is in use, the warning light will flash.

Tire pressure sensors installed on each wheel send tire pressure data by radio signal to the receiver unit in the vehicle. This system may not function properly under the following conditions:

• When there is equipment or a device near the vehicle using the same radio frequency as that of the tire pressure sensors.

• When a large metallic object (i.e., a large electric household appliance or a desktop computer) is placed on the right side of the rear seat, it may block radio signals from the tire pressure sensor to the receiver unit.

• When using a digital device (such as a personal computer) or a current converter device that may cause radio interference with the receiver unit.

• When excess snow or ice adheres to the vehicle.

• When tire pressure sensor batteries are exhausted.

• When using a wheel with no tire pressure sensor installed (i.e., a spare tire).

• When using tires with steel wire reinforcement in the sidewalls or when using tire chains.

TIRE PRESSURE MONITOR WARNING LIGHT CAUTION: Do not tilt or use excessive side force when checking air pressure or inflating a tire, or the tire pressure sensor may

72

be damaged. When the tire pressure warning light illuminates and the warning beep sound is heard (about 3 seconds), check tire pressure and adjust as necessary. When pressure is adjusted on hot tires to the cold inflation pressure, the warning light/ beep may turn on after the tires cool and pressure drops below specification. Also, an illuminated warning light resulting from the tire air pressure dropping due to cold ambient temperature may go out if the ambient temperature rises. In this case, it will also be necessary to adjust the tire air pressure. If the warning light illuminates again even after the tire pressures are adjusted, the tire may be punctured.

NOTE: After adjusting the tire air pressures, it may require some time for the warning light to go out. If the warning light remains illuminated, drive the vehicle at a speed of at least 16 mph (25 km/h) for 10 minutes, and then verify that it goes out.

If the warning light is flashing and a spare tire is not in use, there is a malfunction in the TPMS. See the appropriate manufacturer service information.

TPMS RESET PROCEDURES NOTE: Whenever tires or wheels are changed (including changing to and from winter tires) where a new sensor is installed, the tire pressure sensor’s unique ID signal code must be registered with the TPMS. Tire pressure sensor ID registration is achieved automatically once the vehicle has been stationary for 15 minutes or more, and then driven at a speed of at least 16 mph (25 km/h) for 10 minutes or more.

When the tire pressure warning light illuminates and the warning beep sound is heard, check tire pressure and adjust as necessary.

After adjusting the tire air pressures, it may require some time for the warning light to go out. If the warning light remains illuminated, drive the vehicle at a speed of at least 16 mph (25 km/h) for 10 minutes, and then verify that it goes out.

MTD June 2018

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TPMS

Figure 2: Positioning the tire pressure sensor.

Figure 1: Here’s an exploded view of the tire pressure sensor.

TIRE PRESSURE SENSOR REGISTRATION NOTE: There is no practical difference between the M-MDS scan tool method of registration and the non-scan tool method. The M-MDS scan tool method simply provides the ability to read the tire pressure sensor ID changes directly. With both methods, the vehicle must remain stationary for 15 minutes and then be driven for 10 minutes.

Without M-MDS scan tool 1) Turn the ignition switch to the ON position, then turn it back to the LOCK position.

2) Leave the vehicle with the engine off, and wait for 15 minutes or more. NOTE: If the vehicle is driven before 15 minutes of changing the tires, the TPMS warning light will flash because the sensor ID signal code will not have been registered yet. If this happens, park the vehicle for 15 minutes or more, after which the sensor ID signal code will register upon driving the vehicle for 10 minutes or more.

3) After 15 minutes, drive the vehicle at a speed of at least 16 mph (25 km/h) for 10 minutes or more. Tire pressure sensor ID registration is completed when the TPMS warning light turns OFF. With an M-MDS scan tool NOTE: Use the LDS (laptop PC). The PDS (pocket PC) does not support wheel unit ID registration and monitoring wheel unit ID. NOTE: When using the M-MDS scan tool to perform the ID registration, before driving record the initial ID data and verify the data has changed after driving for 10 minutes or more.

1) Turn the ignition switch to the ON position, and then turn it back to the LOCK position.

2) Connect the M-MDS scan tool and identify the vehicle.

3) After the vehicle is identified, select the following items from the initial screen of the M-MDS. 4) Select “BODY,” then “TPMS FUNCTION,” then “WHEEL UNIT ID REGISTRATION.”

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5) Select “WU_ID REGISTRATION.” 6) Leave the vehicle with the engine off, and wait for 15 minutes or more.

7) Verify the TPMS warning light turns ON and OFF in 0.5 second repeat cycles.

8) After 15 minutes or more, drive the vehicle at a speed of at least 16 mph (25 km/h) for 10 minutes or more. Tire pressure sensor ID registration is complete when the TPMS warning light turns OFF.

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

NOTE: Whenever tires or wheels are changed (such as changing to and from winter tires) where a new sensor is installed, the tire pressure sensor’s unique ID signal code must be registered with the TPMS. See “Rest procedures.”

NOTE: The TPMS is not affected by wheel and tire rotation.

NOTE: Perform tire pressure adjustment when the tires are cold. Tire pressure will vary according to the tire temperature (approximately 1.5 psi (10 kPa) change for every 10 degrees Fahrenheit). Let the vehicle stand for one hour or only drive it 1 mile or less before adjusting the tire pressures.

TIRE PRESSURE SENSOR CAUTION: The use of non-genuine tire sealants is strictly prohibited for vehicles equipped with TPMS. Other tire sealants can clog tire pressure sensors. When reinstalling a previously removed tire pressure sensor to a wheel, replace the grommet for the tire pressure sensor. NOTE: Factory wheels are specially designed for installation of tire pressure sensors. D not use non-genuine wheels, or it may not be possible to install tire pressure sensors.

Removal 1) When replacing a wheel or tire, tire pressure sensors must be set up in one of the following ways: • Remove the sensor from the old wheel and install it to the new wheel. Keep the same wheel with tire pressure sensor, and replace only the tire.

• Use a new wheel and sensor (the new sensor will need to be registered).

2) Remove wheel. Remove the valve cap (see Figure 1).

Remove the valve core, and bleed air from the tire.

MTD June 2018

Your COMPLETE Tire Shop SOLUTION!

TPMS CAUTION: Breaking the tire bead with the tire pressure sensor installed normally could damage the sensor. Be sure to always push the sensor so that it is completely inside the tire to prevent any damage.

3) Remove the nut. Push the tire valve completely into the tire.

4) Position the shoe (bead breaker) of the tire changer 0.40-0.78 inch (10-20 mm) from the outer edge of the wheel, and break both tire beads.

5) Remove the bead from one side of the wheel.

6) Remove the tire pressure sensor.

7) Remove seal washer and seal.

þ TPMS þ Tread þ Pressure þ Bluetooth þ Point of Sale

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Installation 1) Install seal washer and seal.

NOTE: While maintaining contact between the sensor and the rim, manually start to screw valve nut for a few turns. Figure 3: Positioning the tire changer.

2) Insert the tire pressure sensor valve into the valve hole so that the polyurethane foam side faces the rim (see Figure 2).

CAUTION: Do not retighten the valve nut after the initial operation.

3) Install the nut from the outer side of the wheel.

4) Tighten the valve nut slowly (15 pm maximum) to 71 in.-lbs. (8 N.m) in one rotation.

CAUTION: Do not position the tire changer near the tire valve, or tire pressure sensor may be damaged.

5) Set the tire changer so that it is 45 degrees away (point “A”) from the valve hole (see Figure 3).

CAUTION: Do not tilt or use excessive side force when checking air pressure or inflating the tire, or the tire pressure sensor may be damaged.

6) Fill the tire with air. Verify valve nut tightening torque.

7) Install the valve core and cap.

8) Install the tire and wheel assembly.

9) When a new sensor is installed, the ID code will need to be registered. See “Reset procedures.”

Torque specifications Component Wheel nut Tire pressure sensor nut1

Ft.-lbs.

65-87 In.-lbs.

71

(N.m) (88-118) (N.m) (8)

Tighten the valve nut slowly (15 rpm max.) to specification in one rotation. Do not retighten the valve nut after the initial operation. ■ 1

Information for this column comes from the tire pressure monitoring systems data in ProDemand ®, 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.

MTD June 2018

Products Pirelli releases Scorpion All Terrain Plus The new Scorpion All Terrain Plus tire from Pirelli Tire North America for pickup trucks and sport utility vehicles (SUVs) is available in 16- to 20-inch sizes. The tire has a three-peak mountain snowflake symbol and a 50,000-mile tread wear warranty for all sizes.

The company says the aggressive tread pattern and upper sidewall design deliver a great look and balanced performance on and off road. The new tread compound also provides high resistance to cutting and chipping as well as excellent snow traction.

PIRELLI TIRE NORTH AMERICA INC. www.pirelli.com

Clore offers new flood light Clore Automotive has added the 1500 Lumen COB (chips on board) LED (light emitting diode) flood light, model no. LNC2251, to its Light-N-Carry brand. Clore says the LNC2251 is ideal for Area/Flood/Site (A/F/S) light illumination. The LNC2251 combines advanced COB technology, high lumen output, a removable battery, dust/ water resistant housing and a micro-USB charging system. The LNC2251 has three intensity settings and comes with two removable batteries (each battery enables four hours of run time on the high output setting).

CLORE AUTOMOTIVE INC. www.cloreautomotive.com

New VDO TPMS sensor fits Chrysler, Dodge and Jeep Continental Commercial Vehicles & Aftermarket has expanded its OE-replacement TPMS sensor program with a new VDO rubber snap-in TPMS sensor specifically designed for late model applications on Chrysler, Dodge and Jeep vehicles, including the Jeep Grand Cherokee. New part number SE57777 is OE validated and identical to the dealer. The sensor follows the OE vehicle relearn procedures, is compatible with all major TPMS scan tools and ready to install right out of the box.

CONTINENTAL VDO www.redi-sensor.com

Hunter releases QuickGrip adaptors Hunter Engineering’s new WinAlign HD QuickGrip adaptors are designed to speed alignment service and prevent rim damage. Hunter says commercial shops using WinAlign HD and HD QuickGrip adaptors can easily measure all three axles of a heavy-duty vehicle simultaneously. The new adapters feature no metal-to-metal contact, which avoids rim damage. Hunter says the new WinAlign HD QuickGrip adaptors speed alignment checks, helping shops to sell more alignment service.

HUNTER ENGINEERING CO. www.hunter.com

S.U.R.&R. has new oil surface cleaner The new Oil Baron product line from S.U.R.&R., a division of Husky Corp., is designed to eliminate hydrocarbon spills and stains, making them nonflammable and nonhazardous in minutes. The company says the active ingredients in Oil Baron are naturally occurring microbes which convert hydrocarbons like oil, grease, brake fluid, transmission fluid and grease into water and carbon dioxide. The liquid form can be applied to horizontal surfaces using mops, automated floor scrubbers and pressure-washers. The aerosol foam spray is ideal for cleaning tools, engine compartments and vertical surfaces.

S.U.R.&R. www.surrauto.com

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Chicago Pneumatic adds cordless angle grinders The new CP8345 and CP835 cordless angle grinders from Chicago Pneumatic Tool are designed to combine efficient performance with a highly ergonomic design. The new 4.5-inch (115 mm) and 5-inch (125 mm) models provide up to 8,500 rpm (750W/1 hp) of grinding power. The highly compact grinders feature a thin main grip and tight housing for enhanced handling and ease of operation. A 20 degree side handle enables a greater degree of precision during cutting and grinding.

CHICAGO PNEUMATIC TOOL CO. www.cp.com

MTD June 2018

Get in on the ground oor.

We are now accepting applications for a brand new 20 Group. DSP 20 Groups offer tire and automotive dealers the opportunity to share best practices, benchmark against the industry and improve nancial performance. DSP facilitators are seasoned professionals with vast tire and auto service industry experience. We already have six groups, with 120 members benetting from the experience, and this is your chance to get in on the action — don’t miss out!

Increase cash ow. Improve net prot. Reduce payroll.

Inuence employee behavior. Recruit and retain employees.

MTD-.8

Call 310 533-2428, or email: dennis@dsp-20group.com www.dsp-20group.com

Products Cooper introduces Avenger M8 all-season UHP tire The new Mastercraft Avenger M8 from Cooper Tire & Rubber Co. is a W-rated ultra-high performance all-season tire with a 40,000-mile tread wear warranty. The company says the Avenger M8 is quiet, comfortable and fast. The tire, which features a noise-sealing tread design and enhanced elastic base layering, provides drivers with the precise handling and stability needed for a smooth and quiet riding experience in wet or dry weather. The Mastercraft Avenger M8 is available in 19 sizes, from 16- to 19-inch rim diameters.

COOPER TIRE & RUBBER CO. www.mastercrafttires.com

Hennessy offers singlepass brake lathe The Ammco 4000SP combination disc and drum brake lathe from Hennessy Industries is designed to integrate single-speed spindle and feed rates for one-pass precision finishes.

Technicians can turn standard work quicker and easier. The 4000SP uses positive rake tool bits for quality cuts. The result of this simplification is one of the most accurate, durable, and easy-to-use machines, according to the company.

HENNESSY INDUSTRIES INC. www.ammcobrake.com

Philips Ultinon LEDs fit many applications Philips Ultinon LED (light emitting diode) lights from Lumileds are designed to deliver brilliant, high-tech lighting with a choice of cool blue, intense red, intense amber or 6000K bright white. Designed for performance and style, Philips Ultinon LEDs provide excellent light distribution, with a wide angle and proper light diffusion so drivers can see and be seen better. Philips Ultinon LEDs are available for stop lights, turn signal lights, backup lights, taillights, position lights, hazard lights, trunk lights, glove compartment lights and interior floor lights.

LUMILEDS LLC www.usa.philips.com

KTI has 37-degree flaring die set

CEMB unveils ER75TD HubMatch RFV wheel balancer CEMB USA/BL Systems’ new wheel balancer is designed to complete the balancing process on the car at more than 45% less investment cost than other radial force vectoring (RFV) wheel balancers. The company says the ER75TD HubMatch RFV wheel balancer offers leading state-of-the-art balancing features and then uniquely combines an on-the-car mounting finish balancing process that guarantees superior ride quality compared to off-car wheel balancing alone. CEMB USA is the U.S.based subsidiary of Italian industrial balancing equipment manufacturer Costruzioni Ellettro Meccaniche Buzzi SpA. CEMB USA/BL SYSTEMS INC. www.cemb-usa.com

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K Tool International (KTI) has released the Flare 37 degree die set (part no. KTI70083). The company suggests pairing it with its professional brake line flaring tool (part no. KTI70081) to create perfect single, double and bubble flares effortlessly. The extra die set contains a onepiece turret with seven adapters and four-piece tube-retaining dies. The company says the kit’s turret style design makes leak-free and tight seals on 3/16-inch, 1/4-inch, 5/16-inch and 3/8-inch brake, power steering, and transmission lines.

K TOOL INTERNATIONAL www.ktoolinternational.com

Autel adds two wireless tablets Autel Intelligent Technology has released two new wireless advanced diagnostic systems, the MaxiSys MS908S and MS908S Pro. The company says the MaxiSys MS908S and MS908S Pro scan tablets feature a higher quality 8 MP (megapixel) camera, two USB ports, and upgraded hardware as well as an Android 4.4.2 operating system. The new 1.3 GHz + 1.7GHz hexa-core processor and double-the-memory size 64G solid state drive make these tablets more powerful, according to the company. The new tablet tools use existing MaxiSys system applications and navigation.

AUTEL INTELLIGENT TECHNOLOGY CORP. LTD. www.autel.com MTD June 2018

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82

ADVERTISER

PAGE

WEBSITE

Aftermarket Auto Parts Alliance Inc.

59

www.alliance1.com

American Omni Trading Company

55

www.american-omni.com

AUTEL

73

www.autel.com

Automechanika Atlanta

54

www.naceautomechanika.com

Bartec USA

76

www.bartecusa.com

Bee Line Company

44

www.beeline-co.com

BendPak Inc. Ranger Products

17

www.bendpak.com/wheel-service

BFGoodrich Tires

9

www.bfgoodrichtires.com

BKT USA Inc.

11

www.bkt-tires.com

Continental Tire the Americas LLC

19-24, 61

www.continentaltire.com

Continental Tire, Commercial Vehicle Tires

45

www.continental-truck.com

Dealer Strategic Planning Inc.

79

www.dsp-20group.com

Double Coin Tires

63

www.doublecointires.com

Falken Tires

77

www.falkentire.com

Hankook Tire America Corporation

15

www.laufenn.com

Hunter Engineering Company

32

www.hunter.com

K & M Tire Inc.

71

www.kmtire.com

Kenda Tire USA

IBC

kendatire.com/mtdsignup

Kumho Tire USA Inc.

27

www.kumhotireusa.com

Linglong Americas Inc.

7

www.linglongtire.com

Marangoni Tread North America Inc.

43

www.na-marangoni.com

Maxxis International—USA

13

www.maxxis.com

Mighty Auto Parts

75

www.mightyautoparts.com

Nexen Tire America Inc.

IFC, 37-40

www.nexentireusa.com

Nitto Tire U.S.A. Inc.

OBC

www.nittotire.com

Omnicraft Auto Parts

57

www.omnicraftautoparts.com

Reliable Int’l Exhibition Services Co. Ltd.

47-51

www.citexpo.com.cn

SEMA Show

81

www.SEMAshow.com

Sentury Tire Americas

29

www.senturytireusa.com

Sumitomo Tire

5

www.sumitomotrucktires.com

Travel Centers of America

31

www.ta-petro.com

Vipal Rubber Corporation

53

www.vipal-usa.com

ZC Rubber America Inc.

35

www.arisuntires.com MTD June 2018

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MTD June 2018

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