Modern Tire Dealer - August 2011

AUGUST 2011 • VOL. 92, NO. 8 • TEN DOLLARS • A BOBIT PUBLICATION

10 states weigh in on lead-free wheel weight legislation

THE INDUSTRY’S LEADING PUBLICATION

Portrait of the tech-savvy woman tire buyer Sales horsepower, and how to close the deal more often

TOURING TIRE TRENDS Manufacturers balance comfort with fuel efficiency

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Cover feature 24 Touring tires: Low-rolling luxury Manufacturers balance old comfort needs with new demands for greater fuel efficiency

The Industry’s Leading Publication August 2011, Volume 92, Number 8

Departments 4 Editorial How to level an unlevel playing field

Feature 34 Weighing in on lead-free wheel weight legislation The EPA wants lead wheel weights voluntarily phased out nationally; states are already taking the initiative

Commercial Tire Dealer™ 39 Environmentally ly focusedd Pete’s Tire Barns goes green and saves money

6 Online Web top 5: Here’s what you are reading

8 News/views Cooper Tire focuses on branding: The tiremaker centers in on core brands; retires Dean

22 Ludwig Report Fill rates show improvement as manufacturers build inventories

48 Business insight Reaching the tech-savvy woman: How to attract the car maintenance decision makers

50 Business insight Not just more business — business when you need it! Target how people react to your advertising to increase sales

54 Business insight Sales horsepower: Closing the deal more often begins with changing your culture

42 Embrace thee environment nt and improve pro e your bottom line 30 money-saving tips from Pete’s Tire barns

44 Goodyear launches truck service network Wingfoot, Bosselman are Uni-Maxx Truck Care network’s first members

46 Commercially viable

56 Counter intelligence Has value lost its value? Your job is to convince customers a better tire is a better deal

58 TPMS Low- and high-line versions of TPMS receivers on the Hyundai Elantra: An exciter scan tool is needed to perform TPMS service

60 NVH solutions 2003 Mercedes SBC brake system: The technician’s best tool is information on how the components work

62 Focus on dealers A celebration of distribution: Kauffman Tire thanks its wholesale customers

64 Products 65 Quik-Link 66 Classified Modern Tire Dealer is a proud member of:

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Editorial

How to level an unlevel playing field

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letter sent to me recently from Mike Hughes about momand-pop stores made me take notice, and will certainly stir up some debate.

In particular, the owner of Tire Time Rentals in Big Spring, Texas, implied that praising large retailers for continued growth was a bad thing.

By Bob Ulrich Hughes singled out Discount Tire Co. Inc., Pep Boys-Manny, Moe & Jack and Big O Tires for their ability to buy and sell tires more cheaply because of their size. Discount Tire is the second-largest independent tire store chain in the United States with 800 stores. Only TBC Corp., which owns dozens of Big O Tire stores among its 837 retail outlets, has more.

“Where is your support for us small guys?” he wrote.

“You know, the little guys who built the industry into what it is now, the little guys who made the brands recognized, the ones who paved the way for the big guys?”

Single-store outlets make up 62% of the 30,000 independent tire dealerships in the U.S. Hughes is right. They are the lifeblood of the industry. So I called Hughes to find out what all the fuss was about.

After a few minutes, it became apparent that he was angry at the tire manufacturers for giving the large retailers a price advantage. He was not blaming large tire dealers for leveraging better pricing out of the relationship.

“I don’t have a problem with people growing,” he told me. “More kudos to them. I don’t begrudge any of them doing this.

“My complaint is the unlevel playing field for the small independent guy.”

I agree that the playing field is not level. It is fair, however.

Buying in bulk is a basic business principle that helps both parties. Large retailers can sell their products for less. Manufacturers can run their plants more efficiently and save on transportation costs — and they still make a profit on the products.

That is why what Hughes said next surprised me. He had asked a sales representative why he could buy the same tires from Discount Tire and Walmart stores for less than or close to the price the supplier was offering.

Here’s what he said the rep told him: “Well, we don’t make anything off them.”

Here’s what Hughes said he heard: ”We make all our money off you little guys to pay the rent, salaries, utilities and any other expense so we can help the big guys put you out of business.”

I understand Hughes’ frustration. Poor communication from his suppliers only adds to the confusion. But economies of scale are part of a free enterprise system.

Hughes knows this. He also knows what to do about it. He sells and rents brands no one else in his area offers, and suggests other dealers do the same.

“There are a lot of good brands out there,” he said. He even suggests using tire distributors that don’t supply the large retailers.

Thirty years ago, Hughes began his rent-to-own tire company, which successfully expanded into multiple franchises. He sold his stake in all but one of the stores over time. So when he says “carve a niche out for yourself,” his advice comes from experience.

Ultimately, “trying to please your customer” is the key, and is why he is still in business after all these years. If he doesn’t have the tire in stock, he doesn’t just call one distributor. He shops for the best price.

I’ll give the last words to Hughes.

“If I could speak to the major American tire manufacturers, this is what I would say.

“Right now, there is a tire salesman selling someone a foreign tire. Right now, there are some tire manufacturing employees that are going to lose their jobs, and they don’t know it. Right now, there is a business man thinking about shutting his doors forever.

“Right now, there are millions of our dollars going overseas, never to return. Right now, there are thousands of tire shops that wish they could sell American products, but they can’t because you have sold America to the highest volume, biggest bidder in an effort to streamline and concentrate your products distribution.

“This is all happening, right now. It will go on tomorrow and the next day and the one after that, until the foreign tires take completely over or you change.” ■ If you have questions or comments, please e-mail me at bob.ulrich@bobit.com.

‘I don’t have a problem with people growing.

More kudos to them.’

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Online

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Here’s what you are reading

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he top five most popular news items on Modern Tire Dealer’s Web site, www.moderntiredealer.com, for the period from June 20, 2011, through July 20, 2011, were:

1. “Goodyear closes Tennessee plant” (July 11). This news item was about the Goodyear Tire & Rubber Co. ceasing production at its tire manufacturing facility in Union City, Tenn. (On Feb. 10, 2011, Goodyear had announced its intention to close the plant by the end of 2011.)

2. “Pep Boys: buying a tire dealer near you” (July 8). MTD Editor Bob Ulrich used this item to promote his latest blog titled “Pep Boys closes in on 7,000 service bays.”

3. “Tire prices may be too high, says analyst” (July 17). This news item reported that Tony Cristello, managing director of equity research for BB&T Capital Markets, thought Cooper Tire & Rubber Co. — and the industry — might have trouble offsetting rising raw material costs with price increases.

4. “Learn to grow your business, says McManus” (June 23). Roger McManus’ latest article for MTD, about the importance of updating your original business plan, was promoted in this news brief. (See his latest article starting on page 50 of this issue).

5. “Feds want lead wheel weights to disappear” (July 16). MTD editors wrote about the United States Environmental Protection Agency (EPA) and the Environmental Council of States, or ECOS, wanting to eliminate the use of lead wheel weights (see the latest news on this topic on page 34 of this issue).

3515 Massillon Road, Suite 350 Uniontown, Ohio 44685 (330) 899-2200, fax (330) 899-2209 Web site http://www.moderntiredealer.com Editor: ROBERT J. ULRICH Bob.Ulrich@bobit.com Managing Editor: LORI L. MAVRIGIAN Lori.Mavrigian@bobit.com Senior Editor: BOB BISSLER Bob.Bissler@bobit.com Contributors: Auto Service/Technical: MIKE MAVRIGIAN Training/Tire Service: KEVIN ROHLWING Industry Analyst: SAUL LUDWIG Art Director: NEAL WEINGART Neal.Weingart@bobit.com Production Manager: KAREN RUNION Karen.Runion@bobit.com Publisher: GREG SMITH Greg.Smith@bobit.com South and Texas: GREG SMITH Greg.Smith@bobit.com (330) 899-2200, fax (330) 899-2209 Midwest: MICHELE VARGO Michele.Vargo@bobit.com (330) 899-2200, fax (330) 899-2209 West Coast: JOHN DYAL The Dyal Company John.Dyal@bobit.com (760) 451-5026, fax (760) 451-5039 West Coast: MARIANNE DYAL The Dyal Company Marianne.Dyal@bobit.com (760) 451-9216, fax (760) 451-9292 Automotive Aftermarket: DAN THORNTON djtinc@gmail.com (734) 676-9135, mobile (313) 410-0945 fax (734) 675-6744 Classified Sales: DONNA STEWART Donna_Stewart@cox.net (405) 513-6794, fax (360) 406-7576 Reprint Sales: KAREN RUNION Karen.Runion@bobit.com (330) 899-2200, fax (330) 899-2209 Customer/Subscription Service: (888) 239-2455, fax (888) 274-4580

View these news items and much more at www.moderntiredealer.com. And be sure to leave us a comment!

Total access — totally free www.moderntiredealer.com

Modern Tire Dealer is a Bobit Publication Executive offices: 3520 Challenger St. Torrance, CA 90503 Chairman: Edward J. Bobit CEO & President: Ty F. Bobit Chief Financial Officer: Richard E. Johnson

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 1068, Skokie, IL 60076-8068. 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 1068, Skokie, IL 60076-8068. 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 1068, Skokie, IL 60076-8068.

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News/views

Cooper Tire focuses on branding The tiremaker centers in on core brands; retires Dean

By Bob Bissler

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here’s a new focus in Findlay, Ohio, home of Cooper Tire & Rubber Co. After 44 years, Cooper has ended its Dean associate brand in North America. Now the country’s fourth-largest tiremaker will focus on its core Cooper, Mastercraft and Starfire brands.

Cooper purchased the Dean brand in 1999 from David Dean, who was chairman of the former Dean Tire & Rubber Co., Louisville, Ky. Cooper made Dean Tire’s brand for 32 years before purchasing the company.

Rising material costs and recession aftershocks keep things tight financially for tire companies. For Cooper, deciding to phase out a brand came down to one thing: the bottom line.

“We looked at the brands we needed, and we looked at the investment required to continue with the brand,” explains Phil Caris, vice president, sales Cooper recently updated its logo as part of a renewed focus on the brand. and marketing, Cooper North American Tire Division. “We felt that the best business decision was to discontinue the brand and focus in on our Cooper, Mastercraft and Starfire brands. We have to be able to grow our business and service our customers into the future.”

Those customers include dealers like Craig Sumerel, president of Bob Sumerel Tire & Service, Cincinnati, Ohio. His Cooper representative told him last year that the Dean brand was going to be phased out. He says he didn’t have any problem clearing them out. He also sells Starfire, Mastercraft and Cooper brands.

His business is number 39 on the MTD 100 list.

“All Dean tires have been sold out of our inventory,” says Sumerel. “We sold out around the end of the first quarter of

this year. We priced them aggressively to get them to move.”

Now the folks at Cooper are coming up with ways to get the core brands to move. Caris says the company has conducted extensive consumer research over the past two years.

“We are in the process of revamping the entire Cooper brand look,” says Caris. “We’ve redone all of the point-of-purchase materials, and the look and feel of the brand.”

The Starfire brand won’t Cooper will continue to get so much of a new look, market the 101-year-old but the complementary Mastercraft tire brand and brand plays an important the complementary Starfire role in Cooper’s business brand with several lines. plan. Caris says the Starfire offering gives dealers in the Cooper dealer channel a first-step choice.

“Then from there we move up into the more premium lines with the Cooper brand,” says Caris. “Both brands still focus on value, but the Starfire covers the lower end of the price spectrum in terms of consumers’ needs.”

As for the 101-year-old Mastercraft brand, Caris says the company has increased its offerings over the last two years.

Cooper continues to work with its dealer base to strengthen the brand. “Strengthening the programs that we have to support the brand and investing in the new lines are our two major focuses,” Caris explains. “We’ll continue to offer promotions directly aimed at the consumer to help bring them into our customers’ places of business.”

“Losing the Dean brand hasn’t hurt our business at all,” says Sumerel. “We do very well with the Cooper, Starfire and Mastercraft brands. We’ve had a very good relationship with Cooper and from what I understand, this move was in the best interest of the company. It’s in our best interest also.” ■

Consumer Reports gives Zeon RS-3A high marks Consumer Reports magazine recently updated its 2010 findings and conducted testing on ultra-high performance tires. With strong additions to the segment, five new UHP tires were tested by CR for the first time. In the all-season sub segment, the No. 1 tire is the Cooper Zeon RS-3A. CR doesn’t often do tire updates between its three-year cycle of testing truck, family car, and performance car tires. “With our test car, the Chevrolet Cobalt SS, and an Consumer abundance of previously tested models still available, it was easy to add in these new Reports models,” said the company. rates the Cooper Zeon The Zeon Sport A/S ranked 13th out of 15 models CR tested. “The new tire is a stand-out RS-3A the and continues the trend of Cooper tires climbing in Consumer Reports ratings. The Zeon No. 1 tire RS-3A offers all-weather performance and also impressive tread life for a UHP tire.” in the UHP Last fall, CR tested 53 models of summer and all-season UHP tires suitable for sporty all-season subsegment. coupes, sedans, and all-out sports cars. “Needless to say, this update shows it is still a highly contested group,” said Gene Petersen, program leader at the magazine’s automotive test center.

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News/views

Instruction at the free two-day Key to Safe Teen Driving program included cornering maneuvers.

Dunn Tire co-sponsors teen safe driving event Dunn Tire LLC, Kumho Tire U.S.A. Inc. and KeyBank recently hosted a free two-day “Key to Safe Teen Driving” program in Orchard Park, N.Y. The community outreach program is for teenage drivers ages 15 to 20. Teens learn out-of-the-ordinary driving skills from professional instructors from the Mid-Ohio School, which has offered performance driving and defensive driving programs for adults and teenagers since 1993.

“The Kumho Safe Teen Driving Program prepares teens for driving circumstances they may not have encountered in driver’s education by exposing them to unusual conditions and circumstances,” says Pat Logue, Dunn Tire’s managing director of retail operations. The program was established in 2009 by Kumho Tires and KeyCorp’s KeyBank subsidiary to improve the driving skills of teen drivers.

Dunn Tire, based in Buffalo, N.Y., is 35th on the Modern Tire Dealer 100 list of independent tire dealer chains in the United States, with 31 retail outlets.

Family honors Bauer Built founder The G. F. “Sam” Bauer Tribute Trailer is making the rounds across the Midwest. It is designed to honor Sam Bauer, who founded Bauer Built in 1944 in Durand, Wis. Today Bauer Built Inc. is number 41 on the MTD 100 list of top independent tire dealer chains in the U.S. “Grandpa Sam and the early pioneers at Bauer Built worked very hard to establish what we all have today,” says Tad Bauer. “I felt it appropriate to design a trailer that would pay tribute to a man that gave so much to us all. It also motivated me to work hard to ensure that Bauer Built continues to provide for families long into the future.”

Today the company is run The Sam Bauer Tribute Trailer

by President Jerry Bauer, who honors Bauer Built’s founder. was the MTD Dealer of the Year in 1994. Bauer Built has 28 tire centers and nine wholesale distribution centers across the Midwest. The company also has seven Michelin Retread Technology retread plants.

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News/views

bites

Federal adds Facebook page Federal Corp. has joined the world of social networking. The company has launched a Facebook page and Twitter account. With its new presence online, Federal says it will update current news and publish expanded features on Facebook.

Sections are included for an easy and user-friendly navigation.

Negotiator LT tires recalled ITR USA Inc. is recalling certain Negotiator Commercial H/T tires produced by China-based Shandong Yongtai Chemical Group Co. Ltd. from April 2009 through May 2011. The potential number of units affected is 51,003, in sizes LT265/75R16 and LT235/85R16.

For more information, contact ITR USA at (818) 715-7080.

Toyo Tire expands in Georgia Toyo Tire North America Manufacturing Inc. plans to expand its Bartow County, Ga., facility, adding up to 470 new jobs over the next few years. The plant facility was Toyo’s first U.S. consumer tire production operation. The 900,000-square-foot plant has been in operation since 2006, and includes a manufacturing facility and warehouse that serve its customers throughout the country.

Goodyear closes Tenn. plant The Goodyear Tire & Rubber Co. announced it has ceased production at its tire manufacturing facility in Union City, Tenn. On Feb. 10, 2011, Goodyear had announced its intention to close the plant by the end of 2011. Goodyear Chairman and Chief Executive Officer Richard Kramer said product transfers to the other Goodyear plants had been completed more quickly than expected.

Dunn Tire climbs MTD 100 list Dunn Tire LLC has opened its 31st retail store, a location in the Rochester, N.Y., suburb of Pittsford. The Pittsford outlet will represent the company’s ninth in the Rochester market. The Trombley Tire employees will be retained. Dunn Tire is based in Buffalo, N.Y. It is tied for 35th on the Modern Tire Dealer 100 list of the top independent tire dealer chains in the United States.

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Billy Eordekian, president of 1-800EveryRim.com, Pico Rivera, Calif., recently held an event called “Lunch with the Publisher.” Modern Tire Dealer Publisher Greg Smith was the guest of honor. In the photo (left to right), are Smith, Jay Goldberg, Eordekian and Bill Fuqua. Goldberg and Fuqua are current board members of the California Tire Dealers Association.

Wholesalers: 52% say tire unit sales are up The first-half tire sales numbers are in, and the results for independent tire dealers are mixed. Unit sale performance for retailers is split; for wholesalers it is much more positive. And dollar sales are, thanks to all the price increases, higher than the same period last year for both segments.

According to Modern Tire Dealer’s “State of the Industry Survey,” for the first six months of 2011, more than 50% of the wholesalers in the United States were up in unit sales in the first half compared to 1H 2010. The average increase was 14%. We asked: “How were your tire sales, in units, for the first half of 2011?”

• 52% reported unit sales were up by an average of 14% (median 11%).

• 40% reported unit sales were down by an average of 14% (median 10%).

• 8% reported unit sales were even.

In dollar sales, 74% of the wholesalers were up by an average of 16%, while 10% were down by an average of 14%.

For independent retailer tire dealers, 40.2% reported their unit sales were up by an average of 12%, while 40.7% reported their sales were down by an average of 13%.

In dollar sales, 57.1% of the retailers were up by an average of 12%, while 27.7% were down by an average of 14%.

Goodyear sets all-time quarterly sales record Goodyear Tire & Rubber Co. recorded net income of $47 million on net sales of $5.6 billion for its second quarter ended June 30, 2011. That compares to income of $28 million on sales of $4.5 billion for the same period in 2010. Segment operating income was up 74%, from $219 million to $382 million. The sales for 2Q 2011 were a Goodyear record for any quarter.

“I’m very pleased with our outstanding second quarter results, which represent another step on the path toward our 2013 targets,” says Richard Kramer, chairman, CEO and president. “They present confirmation that our strategies are right and that they are working.”

In North America, the company increased year-to-year sales by 17.6%, from $2 billion to $2.4 billion. “Earnings growth in North America is a key outcome of our strategies,” says Kramer. “North American Tire’s second quarter results show the type of performance we should be able to sustain once we reach our 2013 targets.”

Second-quarter sales also reflect strong price/mix improvements, according to Goodyear. The improvements drove revenue per tire up 18% over 2Q 2010, excluding the impact of foreign currency translation.

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News/views

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Rubber consumption rises Global rubber consumption is forecast to reach 25.7 million tons in 2011. The forecast includes both natural rubber and synthetic rubber. The information is in the June edition of the World Rubber Industry Outlook, now available from the International Rubber Study Group (IRSG). For more information, see www.rubberstudy.com.

Done deal: fuel efficiency labels Effective Sept. 6, 2011, model year 2013 and later vehicles will come with a mandatory revised fuel economy and environmental window sticker. The label also can be affixed to the remaining portion of 2012 model-year vehicles on an optional basis. The labeling requirement will apply to new passenger cars, light-duty trucks and mediumduty passenger vehicles sold in the U.S. The redesigned label provides expanded information about new vehicle fuel economy and fuel consumption, greenhouse gas and smog-forming emissions and projected fuel costs and savings.

Dates for Tyrexpo India 2013 Positive feedback from exhibitors at the inaugural staging of Tyrexpo India, which took place in Chennai, India, July 5-7, 2011, has prompted show organizers ECI International to confirm the return of the show to Chennai July 9-11, 2013. According to ECI, 35% of the 80-plus exhibitors have already re-booked for the 2013 exhibition. More than 3,970 trade visitors from India and 20 other countries visited the three-day event this year.

SEMA endorses courses The Specialty Equipment Market Association (SEMA) has endorsed a new certification program to help business owners and professionals increase their knowledge and proficiency of the automotive aftermarket. Available through the California State University San Bernardino, the courses cover business management, marketing, finance, and operations and logistics management. For more information, contact Dick Dixon at Cal State at ddixon@csusb.edu or (909) 447-0812.

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More Bridgestones: Aiken plant expands Bridgestone Americas Tire Operations LLC (BATO) announced that its Aiken County, S.C., plant will begin producing an additional 4,750 passenger and light truck tires per day beginning in the second quarter of 2013. The $135 million investment will create 122 full-time and contractor positions and expand the facility by 266,000 square feet in the main plant and mixing areas.

“With demand steadily increasing over the last couple of years, now is the right time to increase capacity to meet the needs of our customers,” says Larry Magee, president, Consumer Tire U.S. & Canada, BATO. “Aiken County is the right place to expand our manufacturing footprint.”

Site preparation and construction will begin in the fourth quarter of 2011, and the manufacturing equipment will be installed in the third quarter of 2012. Construction is expected to be complete by the first quarter of 2013 with production commencing early in the second quarter of the same year.

Identifix Direct-Hit has 30,000 subscribers Direct-Hit from Identifix now has 30,000 subscribers, a milestone for the online and hotline vehicle diagnostic, maintenance and repair information source.

“Our growth during some of the most challenging economic times in recent history really illustrates the market demand for our products and services. It took us over five years to grow to 10,000 subscribers and in less than four years we have doubled that growth and added another 20,000 subscribers,” says Jeff Sweet, Identifix president.

Direct-Hit is Identifix’s subscription-based online diagnostic resource offering real-world, proven diagnostic and fix information. It was developed from 3.6 million Identifix Repair Hotline calls to the company’s staff of 45 ASE Master, L1 Carline Specialists. Identifix says Direct-Hit delivers more than 460,000 Hotline Archives that contain symptoms, associated shortcut tests and confirmed fixes. Direct-Hit is updated with over 5,000 new entries added to the database each month.

For more information, see the Web site http://www.identifix.com.

Two new Michigan stores are added to Belle Tire lineup Belle Tire’s new Lyon Township, Mich., location is projected to open in early September 2011. Construction of the next store in Gaines Township, Mich., began on July 15th. The additions will bring Belle Tire’s total to 87 stores with 1,700 employees.

Belle Tire’s two new stores in “We are excited to be expanding our service Michigan bring the company’s in these great towns,” states Jeff Kruse, vice total to 87 locations. president of retail operations for Belle Tire.

“At the end of the day, our business is experiencing increases, gaining customers and we’re growing. That is a great testament to the efforts of our many dedicated employees and we look forward to adding many more to our team.”

Nokian green tires roll on electric sports car prototype The Electric Race About (ERA) is a new breed of sports car that harnesses the fuel efficiency of an electric car and the power and speed of a traditional sports car. The ERA hit the road recently at the first-ever international e-rally for electric vehicles, the e-miglia rally 2011. The race is a four-day clean street rally that winds drivers through four countries and 487 miles (800 kilometers) of Alpine mountain roads of central Europe. Since tires consume a considerable amount of energy on those roads, the E-car needed tires with extremely low rolling resistance. Nokian supplied its Z G2 tire to provide low-rolling resistance and good safety handling.

ERA is a joint project of Nokian Tyres and Helsinki Metropolia University of Applied Sciences in Finland. While it consumes only 14.5 kWh over 62 miles (100 kilometers) and emits no carbon monoxide, it goes from 1 to 62 mph (100 km/h) in six seconds and tops out at 137 mph (220 km/h).

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Introducing The All New Premium SUV, Crossover & Light Truck Tire

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EFFICIEN EL

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TEMPERATURE:

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2,500 miles based on 3.8% fuel efficiency improvement with 70,000 mile treadlife limited warranty. 26.6% rolling resistance difference based on independent rolling resistance testing; Continental CrossContact LX20 265/70R17 115T compared to Pirelli® Scorpion™ STR A P265/70R17 113H and 3.8% fuel savings based on rolling resistance to fuel efficiency ratio within the estimated range of fueleconomy.gov, a NHTSA sponsored web publication. **Actual savings vary based on driving techniques, road conditions, tire maintenance and replacement interval.

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Customer Satisfaction Ride Guarantee Limited Warranty with Free Replacement

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THE ALL-SEASON TIRE DESIGNED TO SAVE YOU MONEY PLUS MORE

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When Continental Tire’s engineers and chemists embarked on creating the CrossContactTM LX20, they focused on saving fuel over the life of the tire. The result is a tire that can save up to 2,500 miles of fuel when compared to a leading competitor’s standard tire.*

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A MILE GE

Every gallon of gasoline saved not only reduces fuel costs for the consumer but also helps to reduce our nation’s dependence on oil. In addition to reducing costs, each gallon of gas saved also means up to 20 fewer pounds of toxic CO2 emissions released into the Earth’s atmosphere making the CrossContactTM LX20 a smart buying decision.

THE ALL-SEASON TIRE DESIGNED TO LAST LONGER PLUS MORE Premium features designed to enhance vehicle performance are not the only plus for this tire. The CrossContactTM LX20 provides a high mileage warranty with a 70,000 mile limited treadwear warranty.

BRAKIN ET

G

W

ALL OF THAT PLUS...

AL THE ALL-SEASON TIRE DESIGNED TO PROVIDE EXCELLENT WET BRAKING PLUS MORE An emergency stop on a wet, slippery road can be a frightening experience. Tires are the only contact to the road during these adverse road conditions. When compared to a leading competitor, the CrossContactTM LX20 stops up to 34 feet shorter. ***

* 2,500 miles based on 3.8% 3. fuel efficiency improvement with 70,000 mile treadlife limited warranty. 26.6% rolling resistance difference based on independent rolling resistance testing; Continental Con ontine CrossContact™ LX20 265/70R17 115T compared to Pirelli® Scorpion™ STR A P265/70R17 113H and 3.8% fuel savings based on rolling resistance to fuel efficiency ratio within the estimated range of fueleconomy.gov, a NHTSA sponsored web publication. ***Independent braking test compared Continental CrossContact™ LX20 265/70R17 115T to Pirelli® Scorpion™ STRA P265/70R17 113H.

PROGRAMS & RESOURCES

CTAMEDIA.COM

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TECHNICAL BENEFITS

t

t t t

Biting edges in the grooves of the tire give increased snow grip when drivers need it most.

Crisp Handling Response Smooth, Comfortable Ride Reduced Road Noise

Why carry Continental? t t t t t t

140 Years of tire building expertise Award winning products Cutting edge promotions & marketing support 65% of Continental product lines are 3 years or newer Focused on fuel efficiency technology worldwide OE on many of the finest automobiles

t Only premium line to provide road hazard coverage t Innovative online training through ENGAGE360 t Real Performance Motivation (RPM)... the fastest way to the best rewards t GOLD dealer program...Great Opportunities for Leading Dealers

Why carry CrossContactTM LX20 t t t

36 popular sizes Exceptional wet braking capabilities New technology

t t t

Better for the planet Profitability Competitive pricing

TO PLACE AN ORDER, FIND A DISTRIBUTOR, OR BECOME A DEALER CALL: 1-800-270-3545 -or- VISIT: WWW.CONTINENTALTIRE.COM

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TIRE SIZES

SAMPLE VEHICLE FITMENTS

MAKE

MODEL

Acura

MDX, ZDX

Audi BMW Cadillac Chevrolet Dodge Ford Honda Jeep Lexus Lincoln Mazda Mercedes Nissan Porsche Toyota

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SIZE

LOAD / SPEED INDEX

LOAD RANGE

SIDEWALL

OVERALL TIRE / WHEEL DIAMETER (IN.)

OVERALL SECTION WIDTH (MEASURING RIM) (IN.)

APPROVED RIM WIDTHS (IN.)

235/75R16 245/75R16 265/75R16 215/70R16 225/70R16

108S 111S 116T 100S 103S

SL SL SL SL SL

OWL OWL OWL OWL OWL

29.9 30.5 31.6 27.9 28.4

9.3 (6.5) 9.8 (7.0) 10.5 (7.5) 8.7 (6.5) 9.0 (6.5)

6.0 - 8.0 6.5 - 8.0 7.0 - 9.0 5.0 - 7.0 6.0 - 7.5

235/70R16

106T

SL

OWL

29.0

9.4 (7.0)

6.0 - 8.0

245/70R16 265/70R16 235/65R16 255/65R16 245/70R17 265/70R17 265/70R17 225/65R17 235/65R17 235/65R17 245/65R17 255/65R17 265/65R17 265/65R17 275/60R17 255/70R18 265/70R18 235/65R18 255/65R18 265/65R18 275/65R18 235/60R18 245/60R18 265/60R18 275/60R18 255/55R18 255/50R19 275/60R20 275/55R20 285/50R20

107S 112S 103T 109S 110S 115T 115T 102T 108H 108T 107T 110S 112T 112T 110S 113T 116S 106T 111S 114S 116T 107H 105T 110T 113H 109H 107H 115S 117S 112H

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

OWL OWL BSW OWL OWL OWL BSW BSW BSW OWL OWL OWL OWL BSW OWL OWL BSW BSW BSW OWL OWL BSW BSW OWL BSW BSW BSW OWL BSW BSW

29.5 30.6 28.0 29.1 30.5 31.6 31.6 28.5 29.0 29.0 29.5 30.1 30.6 30.6 30.0 32.1 32.6 30.0 30.1 31.5 32.1 29.1 29.6 30.5 31.0 29.0 29.0 33.0 31.9 31.2

9.8 (7.0) 10.7 (8.0) 9.4 (7.0) 10.2 (7.5) 9.8 (7.0) 10.7 (8.0) 10.7 (8.0) 9.0 (6.5) 9.4 (7.0) 9.4 (7.0) 9.8 (7.0) 10.2 (7.5) 10.7 (8.0) 10.7 (8.0) 11.0 (8.0) 10.2 (7.5) 10.7 (8.0) 9.4 (7.0) 10.2 (7.5) 10.7 (8.0) 10.9 (8.0) 9.4 (7.0) 9.8 (7.0) 10.7 (8.0) 11.0 (8.0) 10.4 (8.0) 10.4 (8.0) 11.0 (8.0) 11.2 (8.5) 11.7 (9.0)

6.0 - 8.0 7.0 - 9.0 6.5 - 7.5 7.0 - 9.0 6.5 - 8.0 7.0 - 9.0 7.0 - 9.0 6.0 - 8.0 6.5 - 8.5 6.5 - 8.5 7.0 - 8.5 7.0 - 9.0 7.5 - 9.5 7.5 - 9.5 7.5 - 9.5 6.5 - 8.5 7.0 - 9.0 6.5 - 8.5 7.0 - 9.0 7.5 - 9.5 7.5 - 9.5 6.5 - 8.5 7.0 - 8.5 7.5 - 9.5 7.5 - 9.5 7.0 - 9.0 7.0 - 9.0 7.5 - 9.5 7.0 - 9.5 8.0 - 10.0

Q5, Q7 X5, X6 SRX, Escalade Traverse, Trailblazer, Colorado, Avalanche, Silverado, Suburban, Tahoe, Equinox Ram Pickup, Ram 1500 Pickup, Dakota, Nitro, Journey, Grand Caravan Explorer, Escape, Edge, Expedition, Flex, F-150, Ranger CR-V, Ridgeline, Element, Pilot, Accord Crosstour Grand Cherokee, Liberty, Commander, Wrangler RX330, RX350, RX400, LX470, GX470 MKX, Navigator CX-7, CX-9, Tribute ML230, ML350, ML500, R320, R350, R500 Murano, Pathfinder, Xterra, Armada, Titan, Frontier Cayenne Tacoma, 4Runner, Tundra, Highlander, RAV4, Land Cruiser, FJ Cruiser

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Longtime industry veteran Bill Sweatt dies Well-known tire industry figure and former Goodyear Tire & Rubber Co. General Sales Manager William “Bill” Sweatt died at the age of 85. He was born in Lafayette, Calif., in 1926, and was a World War II veteran.

Sweatt began his career with Goodyear in Sacramento, Calif., in 1947. He started out rolling tires, and over the years went through a series of promotions to eventually become Goodyear’s general sales manager at the Akron, Ohio, headquarters.

In 1980 he was appointed CEO of Goodyear private label subsidiary Lee Tire in Conshohocken, Pa. He retired in 1987.

New TIA newsletter follows state legislation The new TIA Government Relations State Legislative Update is now available from the Tire Industry Association (TIA). The publication lists legislation relevant to tire dealers in a state-by-state format.

“There are currently dozens of bills being considered in state legislatures throughout the nation that could have a dramatic impact on tire dealers in those states,” says TIA Executive Vice President Roy Littlefield.

The update is available each month electronically (in pdf format) and is free to all TIA members. To subscribe, members should send an e-mail to memberservices@ tireindustry.org, and put “TIA Member - Subscribe to State Legislation Update” in the subject line. Each month, TIA will send an e-mail notifying them of the availability of the latest edition.

The update lists each piece of legislation by state, bill number, topic and status, and it provides a link to view the bill online (if available). TIA says the group would like it to serve as a catalyst to prompt members to stay in regular contact with their state legislators, in order to ensure that their voice is heard.

TBC adds to private brand service products The TBC Retail Group will offer Service Central branded fluids at its family of tire and automotive service centers. That includes its more than 775 tire and automotive service centers, which do business as Tire Kingdom, NTB (National Tire and Battery) and Merchant’s Tire and Auto Centers.

Participating Big O Tires outlets also will offer Service Central branded fluids.

TBC owns the Big O franchise program; there are nearly 500 franchised Big O locations in the United States.

The private label product lineup is made up of power steering fluid and conditioner; and automatic transmission, cooling system, oil system, three-step fuel system, induction and throttle-body cleaners. The products are available in stores beginning in August, 2011.

“It is our goal to provide consumers with the best in quality and service while maintaining affordability,” says Orland Wolford, CEO and president of the TBC Retail Group.

“The addition of the Service Central Fluids program does just that.” ■

For complete daily, even hourly news coverage of the tire industry, check out Modern Tire Dealer’s Web site at www.moderntiredealer.com

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Continental buys Modi Tyres Continental AG has acquired 100% shareholding in Modi Tyres Company Ltd. (MTCL), a subsidiary of Modi Rubber LTD. Continental first announced the deal in April. MTCL has now become a fully owned subsidiary of Continental Corp. and will be renamed Continental Tyres India Ltd. The new entity will focus on local production and distribution of bias and radial truck and bus tires as well as radial passenger car tires for the Indian market.

Yokohama takes grassroots tour Yokohama Tire Corp. has expanded its nationwide grassroots consumer programs in 2011 by participating in 18 car shows and car club events, including the upcoming Z1 Nationals, Porsche Parade, Goodguys Chicago Nationals, Corvette Funfest and BMW Oktoberfest. Among the remaining 2011 grassroots events on Yokohama’s calendar are: the Corvette Funfest, Sept. 16-18 at Mid America Motorworks in Effingham, Ill. The Z1 Nationals Sept.

23-25, at the Z1 Motorsports Facility in Carrollton, Ga., and the week long BMW Oktoberfest at Barber Motorsports Park in Birmingham, Ala., Oct. 10-16.

Bridgestone gets OSHA award For the fourth time, the Warren County, Tenn., plant of Bridgestone Americas Tire Operations LLC (BATO) has been recognized with the Volunteer Safety Through Accountability and Recognition (STAR) award. The award is the highest honor from the Tennessee Department of Labor & Workforce Development and Tennessee Occupational Safety and Health Administration. The Volunteer STAR recognizes the best in the area of safety and health programming and performance.

Shuttle lands on Michelin tires When the space shuttle Atlantis touched down for the last time, it landed on Michelin tires. Throughout NASA’s space shuttle program, Michelin North America Inc.’s Michelin Aircraft Tires division has been the sole manufacturer of space shuttle tires at its Norwood, N.C., aviation tire plant.

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Ludwig Report

Fill rates show improvement as manufacturers build inventories

T

he U.S. consumer is stretched and purchases that can be postponed are being put off.

My survey of tire dealers across the country point to slow sales of consumer tires with many dealers reporting comp store tire volume declines of more than 5% in June with not much improvement seen in July. While some dealers are doing quite well, the business, overall, is challenged. Inventories at the tire manufacturers are building, so fill rates By Saul Ludwig for the tires you order should be improving. While the consumer business is slow, commercial business is strong. Truck, farm and OTR tire supplies are still tight.

As to raw materials, while natural rubber prices have receded from their highs, synthetic rubber and carbon black costs continue to increase, so the total basket of tire raw materials continues to move higher. I expect to see commercial tire prices move higher, but sluggish consumer tire demand may keep a lid on those prices for a while longer.

Major and private brand pricing was up slightly In comparing the month of June 2011 with May 2011, average costs for size 215/60R16 major brand tires were up 2% while selling prices were up 1%. The average costs for a 215/60R16 private brand tire were up 1% while selling prices were up roughly 2%.

Dealers believed pricing was very firm In June 2011, 75% of truck tire dealers saw pricing as very firm, while passenger tire dealers were much more mixed with a slight bias, 44% toward pricing being very firm.

Truck tire inventories remained too low The survey indicated that 56% of passenger tire dealers believed inventories were in line with current business levels, while 31% viewed inventories as too high for current demand.

The rest (13%) felt inventories were too low. The truck tire dealers we surveyed indicated inventories have slightly deteriorated, as 46% believed inventories were too low compared

How dealers view their near-term business

Monthly survey A number of independent tire dealers were surveyed concerning current business trends.

Except for tire prices and costs, the results of the June 2011 survey are compared with those of June 2010.

Passenger tire dealers lost confidence

Dealers

FEB

MAR

APR

MAY(R)

JUN(P)

JUN(10)

Passenger tire Will improve Will worsen Will stay level

43% 0% 57%

60% 0% 40%

56% 0% 44%

45% 14% 41%

31% 6% 63%

11% 33% 56%

Truck tire Will improve Will worsen Will stay level

80% 0% 20%

75% 0% 25%

80% 0% 20%

56% 5% 39%

62% 0% 38%

0% 0% 100%

R-Revised P-Preliminary Roughly 31% of passenger tire dealers believe business will improve over the next six months while 63% believe it will stay about the same. Six to 29% in May, while 39% felt inventories were in line with percent believe it will worsen. As for truck tire dealers surveyed, current business levels. Some 15% felt inventories were in line.

62% see business improving while 38% see business remaining Strong demand for truck tires throughout the second quarter is level. Despite gas prices falling roughly 6% in June, they are likely the culprit for decreasing dealer inventories, while weak still up 16% in 2011 and are negatively affecting passenger passenger tire demand is having the opposite effect. tire dealer sentiment. These outlook comments tend to be seasonally directed rather than year-to-year comparisons.

Service revenues were up 10%, dealers reported Dealers who provide automotive service reported that 25% Passenger tire sales continue to slide of revenues, on average, were generated by service during June.

According to dealer reports, on average, retail sales of new Dealers indicated that service business was up 10% in June replacement passenger tires were down around 3%. Disparity vs. June 2010. Service business has been very strong through amongst dealers is great with some dealers indicating sales most of 2011, but the rate of growth has slowed slightly the increased by 25% while others were down as much as 25%. Some past two months. â– dealers we surveyed still feel gas prices, while falling, are still hurting sales, but they are pleased that manufacturer inventory Analyst Saul Ludwig is a managing director with Northcoast levels are rising, which is leading to better fill rates. On the other Research Holdings LLC based in Cleveland, Ohio. He concenhand, new truck tire sales continue to show strength as volume trates on the tire and chemical industries. He has been writing was up 6% while retreaded tire sales were up 5%. for Modern Tire Dealer since April 1975.

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MTD August 2011 8/11/11 2:09:00 PM

Quik-Link: 800-687-1557 ext. 19109

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8/11/11 2:09:06 PM

Touring tires

Touring tires: Low-rolling luxury Manufacturers balance old comfort needs with new demands for greater fuel efficiency

By Bob Bissler Part one of two

T

ouring tires fit a unique category of consumer tires.

While they combine a performance tire’s low-profile handling with a premium tire’s softer ride, they also have all-season capabilities. Because of this, they are often called performance touring tires.

Today, manufacturers of touring tires are keeping busy. Five years ago the emphasis was on high speed ratings and

performance characteristics with no decrease in ride comfort.

Today, high-speed, performance and comfort are still demanded.

But so is low-rolling resistance and enhanced fuel mileage.

“The touring tire segment is actually made up of at least two sub-categories,” says Conal O’Neill, senior manager, pricing and administration at Falken Tire Corp. “The standard touring tires category (mostly made up of S- or T-rated, 60-, 65- and 70-series applications), has been active for a number of years and is relatively mature. The performance touring tires category mirrors the current high/ultra-high summer performance lines available in both size applications and performance ratings.”

O’Neill says in the coming years, touring tires will continue to grow in size applications available and number of units sold.

And many tire manufacturers have seen growth in the area of tires with higher speed ratings.

“Current trends in the touring tire segment are: higher speed ratings – V and W; lower aspect ratio sizes; and, larger rim diameters,” says Rick Brennan, vice president of marketing for Kumho Tire USA. “An example is the Mazda 6 Touring model – 235/45R18. The trend is expanding the SKU counts of the touring category of tire lines.”

According to the Goodyear Tire & Rubber Co.’s Web site, the luxury touring segment has evolved within the premium passenger segment, and vehicle specifications have changed. H-speeds are becoming standard, while V-speed ratings have become increasingly popular. Goodyear says there is growth in the touring segment, defined as those tires with a design emphasis on driver comfort, ride and handling. The numbers appear to back that up.

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The awareness of fuel efficiency isn’t focused only on the environment. Rising fuel prices push the demand for fuel-efficient tires. Also, increasing tire prices are fueling the demand for tires that last longer.

“In the last several years, companies have started to push the envelope in the touring tire segment,” says Jay Spears, technical product manager, Continental Tires the Americas LLC. “With the increase in fuel prices, the awareness of fuel efficiency has pushed tire manufacturers to provide low-rolling resistance tires specifically to the touring segment.”

Spears says most major brands have introduced some sort of eco tire line. The lines offer well-rounded performance with an emphasis on fuel efficiency. That emphasis is expected to continue. In the next few years, the expectation is that the touring segment will slowly become the “eco” segment for most companies. Good fuel efficiency will be the expectation for a lot of consumers.

“The current trend that we see in the touring tire segment is an increased focus on lower-rolling resistance and improved fuel economy,” says Henry Kopacz, Hankook Tire America Corp.’s public relations and product marketing specialist. Kopacz says consumers are becoming more aware of the economical and environmental benefits of low-rolling resistance tires.

Continuous improvements Today’s touring tires offer improved rolling resistance and fuel efficiency, higher speed ratings and wet and dry performance.

But consumers are demanding even more from this segment, and manufacturers are delivering.

“A trend that we are seeing is an increase in the blending of SUV and passenger sizes into a crossover utility segment,” says Cooper Tire & Rubber Co.’s Product Segment Manager Bruce Sanborn.

“As vehicle manufacturers continue to develop new vehicles in the crossover segment, the lines of traditional SUV and passenger sizes become harder to define. CUVs have the ride, comfort and tread design of a traditional touring tire but the sizing of an SUV.” Sanborn says this trend has put an increased emphasis on 17-inch

Photo courtesy of Goodyear

“The luxury touring tire segment, where Michelin’s Primacy MXM4 is a strong competitor, saw significant growth in 2010. Through May 2011, the segment continues to see strong growth, though it has slowed with the slower-than-expected overall economic recovery, concerns about energy prices and sensitivity to continued high unemployment,” says Martha Burwell, Michelin North America Inc.’s passenger car marketing manager. Whether or not the economy improves, the touring tire segment will likely evolve. As it does, manufacturers will keep pace with the changes.

“What once were two very distinct market segments have converged over the last few years,” says Tom Gravalos, Pirelli Tire North America’s vice president of marketing and original equipment.

“Historically, touring tires had a smaller wheel diameter, bigger aspect ratio, narrower cross section and generally were S- and T-rated only.

Today we are seeing bigger wheel diameters and everything from S- to V-rated tires in the category.”

In addition to size and speed rating evolution, Gravalos says Pirelli has seen performance improvements that provide better fuel economy, traction and durability.

Tiremakers serving this market must have the ability to develop and introduce these improvements, driven by consumer demands and the OEM’s need to improve fuel economy.

“Overall, the trend is looking like a continued slight decline due to the previous and ongoing push from the OEs for higher speed ratings and larger rim sizes,” explains Chet Plewacki, Yokohama Tire Corp.’s consumer product manager. “However, the segment is still large and is trending towards larger rim sizes that are showing up within the touring segment as well.”

But higher speed ratings and larger rim sizes are just the beginning. With the recent eco-friendly movement, tiremakers are being pushed to make fuel-efficient tires with low-rolling resistance. That demand has migrated into the touring category as well.

“The current trend is fuel efficiency,” says Julie Porter, product manager at Bridgestone Americas Tire Operations LLC. “Consumers are looking for all the characteristics they expect in a traditional touring tire, plus the added benefit of fuel savings.”

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Touring tires and larger tires. It has also put a focus on fuel efficiency through “This category will grow as the benefits of a blend between low-rolling resistance technology. performance, ride comfort and tire life grow in importance in “Within the value arena, the touring segment continues to the view of tire purchasers.” focus on mileage longevity coupled with all-season performance,” says Joshua Simpson, vice president of marketing at What are the latest touring tires?

Hercules Tire & Rubber Co. “Meeting the original equipment With all the trends in the touring tire market, manufitments’ performance characteristics has become more of an facturers are challenged to keep up with consumer needs, expectation than an exception.”

OE demands and technological While consumer expectations continue to advances. The latest touring tires on place demands on tiremakers, some don’t see the market reflect these challenging great activity in this segment. requirements.

“Everybody seems to have their own definition on what a touring tire is. I think it’s a dying term.

Bridgestone Ecopia EP422 Most manufacturers have merged HP and UHP Bridgestone Americas Tire Operaproducts with T-rated to form a power line that tions LLC says the Ecopia EP422 is consists of 60 to 80 sizes,” says John Aben, vice one of its quietest tires. Compared president, sales and marketing for Nexen Tire to the conventional Bridgestone America Inc. “Consumers today are shopping Turanza EL400 it replaced, it has price and the speed rating is not as important.” improved its rolling efficiency 36%.

As manufacturers track consumer trends in When developing the Ecopia EP422, touring tires, the changes continue to add up. The Bridgestone Ecopia EP422 Bridgestone engineers created a balAs they do, there seems to be plenty of room for features silica that improves anced tire that maintained the features traction in wet conditions by optimism in the market. consumers expect, while improving increasing flexibility of the “This is a relatively new category for the tire tread compound. the fuel economy. industry with many manufacturers recently addContinuous ribs maintain traction ing lines that fit into the performance touring designation,” and a quiet ride. The Fuel Saver Sidewall compound lowers rolling says Falken’s O’Neill. resistance by returning more energy back to the tire, instead of

26 MTD_24-33.indd 26

Quik-Link: 800-687-1557 ext. 19110

MTD August 2011 8/11/11 2:11:27 PM

Quik-Link: 800-687-1557 ext. 19111

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A world of ideas and innovation. All the tire and equipment manufacturers showcasing new products and technology. It’s “new” on full throttle, with more opportunities for tire dealers to increase sales and find new profit centers everywhere you look. Register now and wrap your head around it all this November.

Register today at SEMAShow.com/MTD

MTD_SEMA_insert.indd 1

Las Vegas Convention Center, Las Vegas, Nevada Exhibit Days: Tuesday, Nov. 1 - Friday, Nov. 4, 2011 Education Days: Monday, Oct. 31 - Friday, Nov. 4, 2011

8/12/11 2:23:51 PM

GLOBAL TIRE EXPO— POWERED BY TIA: This is your show—the big event for tire dealers, with all the trends, brands and new product innovations your customers will be buying in 2012.

Now it’s more important than ever to stay ahead of the curve. Get to the Global Tire Expo at the 2011 SEMA Show—Trend Central for the entire automotive industry—where in just four days, you’ll find all the leading tire brands, all the newest technology and all the cross-selling opportunities to drive more customers through your doors. 䡲 The most innovative products from every major tire and equipment manufacturer. 䡲 All the easy-to-sell-and-install, highmargin truck, SUV and automotive accessories to help you develop crossover markets and add-on sales—plus hands-on demonstrations and technical workshops to show you how to install what’s hot.

䡲 More than 50 free educational seminars plus expanded education specifically to help tire dealers build business and increase profits. 䡲 The largest gathering of wheels and wheel accessories in the world. 䡲 SEMA-only action and excitement—1,500 inspiring custom rides, celebrities, liveaction proving grounds and special TIA education and events.

FIND NEW REVENUE STREAMS. With more than 1,700 exhibiting companies—including 500+ first-time exhibitors and every major manufacturer—the SEMA Show has all the resources you need to diversify and profit. Easy-to-navigate show sections let you find what you need FAST. GLOBAL TIRE EXPO

BUSINESS SERVICES

HOT ROD ALLEY

MOBILE ELECTRONICS & TECHNOLOGY

COLLISION REPAIR & REFINISH

POWERSPORTS & UTILITY VEHICLES

RACING & PERFORMANCE

RESTORATION MARKETPLACE

RESTYLING & CAR CARE ACCESSORIES

TRUCKS, SUVS & OFF-ROAD

TOOLS & EQUIPMENT

WHEELS & ACCESSORIES

POWERED BY TIA

If you’re serious about turning a profit, get serious about the Global Tire Expo at the SEMA Show. Make plans now to attend.

REGISTER NOW FOR ONLY $25. www.SEMAshow.com/MTD MTD_SEMA_insert.indd 2

8/12/11 2:23:52 PM

Bring on the Opportunities.

They’re out there for tire dealers like you, so come and get them! Put the full strength of the SEMA Show behind your business now, and be 100% ready to build your sales and profits.

❯ EXPANDED TIA EDUCATION FOR TIRE DEALERS: Take advantage of a beefed-up seminar program to get more high-level knowledge and training from tire industry experts.

Four tracks let you zero in on the relevant information you need most.

Truck Tires at 10

TPMS at 10

10:00 a.m. - 11:30 a.m.

TUESDAY: “CSA and Truck Tire Service” WEDNESDAY: “The Future of Emergency Road Service”

10:00 am – 11:30 am TUESDAY: “The World of Programmable and Multi-Format TPMS Replacement Sensors” WEDNESDAY: “TPMS Tools of the Trade” THURSDAY: “TPMS Diagnostics”

Tires at 2 2:00 p.m. - 3:30 p.m.

TUESDAY: “Successful Tire Dealers Share Their Secrets” WEDNESDAY: “Managing the Excellence in Your Sales Force” THURSDAY: “Repair the Tire, or Fix the Flat?”

Management at 4 4:00 p.m. - 5:00 p.m.

TUESDAY: “Understanding Health Care Reform” WEDNESDAY: “What Women Want” THURSDAY: “When Will You Be ‘Finished’?”

Green @ Noon 12:00 pm – 1:00 pm TUESDAY: Sustainability & Environmental Best Practices— Part 1: “Sustainable Tire, Battery and Automotive Shops” and Part 2: Environmental Best Practices for the Tire, Battery and Automotive Dealer WEDNESDAY: “Tire Manufacturers Going Green” THURSDAY: “What Dealers are Doing to ‘Green’ Their Tire Business”

TIA Global Symposium 5:00 pm – 6:00 pm WEDNESDAY

100% WORTH IT.

VEGAS: UNBEATABLE VALUE

A few days at Global Tire Expo will net you a year’s worth of new opportunities to build business, add customers, increase sales— and profit more. GET HERE. GET AHEAD.

With early bird room rates starting at just $54/night, a stay in Las Vegas is one of the best deals on the planet. Take advantage of special discounted SEMA rates on hotels and airfare to save even more. Plus, book now through SEMA’s hotel block and most resort fees will be waived.

REGISTER* AND SAVE $50. (*Before October 18)

www.SEMAshow.com/MTD

MTD_SEMA_insert.indd 3

For details, visit www.SEMAshow.com/MTD

8/12/11 2:23:52 PM

STRENGTHEN YOUR CORE BUSINESS. Hook up with all the people who can help your business grow. The comprehensive Global Tire Expo is all yours— with products and resources from exhibitors like these: Achieva Rubber Corp.

Acme Rubber Aeolus Tyre Aftersoft Network NA Alliance Tire Group AME International American Omni Trading Anhui Darui Tire Rubber API ASA Tire Systems ATEQ Corp.

ATT Austyre AutoTool Balkrishna Industries (BKT) Bartec USA Bee Line Best Choice International Trade Branick Industries Bright Technology Cangzhou Flying Dragon Auto Parts CarCareONE Chadha Rubber China Manufacturers Alliance Chonche Auto Double Happiness Tyre Corp.

CIMS Tire Registration Continental Tire the Americas Cooper Tire & Rubber Corghi USA Counteract Balancing Beads Crowntyre Industrial Cub Elecparts Daeho Industry/Pacific Treads Deestone Ltd. Dill Air Controls Products Dong Ah Tire & Rubber Doublestar Tire Corp.

Duro Tire & Wheel East Bay Tire Eastup Industrial Elgi Rubber (USA) Enjoy Tyre Essen Trade Shows Exactra Fairmount Tire Specialty Falken Tire Corp.

First Tape and Label 50 Below Sales & Marketing Five Diamond Motors Foreign Tire Sales Freedomsoft Fullroad Rubber Fullrun Tyre Corp.

Gaither Tool Goodtire Rubber Industrial GreatLakes Tire Co. Greenball Corp.

Hangzhou Hamaton Tyre Valves

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Hangzhou Shunyuan Tire Manufacture Hangzhou Zhongce Rubber Hankook Tire America Corp.

Hanksugi Japan Tyre International HATCO SAL Haweka USA/Allpart Supply Hennessy Industries Hercules Tire Hny Tires Horizon Tire Hunter Engineering Jiangyin Premier Autoparts Industry JK Tyre-Tornel JM Nault Wheel Weights JMK Computerized TDIS JOSN Electronic Kelsey Tire Kenda Tire USA Ken-Tool Lakin Tire West Liberty Tire Recycling LKQ Corp.

Long March Tyre Lu Hai Industrial Corp.

Lucy’s Tire MaddenCo Malhotra Rubbers (Tyres) India M&R Tire Products Martins Industries Maxxis International Mickey Thompson Performance Tires & Wheels Mighty Auto Parts Modern Tire Dealer ModuLube Morton Supplies Moving Targets Mov-it Tire Products Myers Tire Supply Nankang Rubber Tire Corp.

Net Driven Nexen Corp.

Nexen Tire America Niagara Lubricant Ningbo Able Rubber & Auto Parts Ningbo Blueocean Auto Parts Ningbo Fortune Auto Parts Manufacture Ningbo Ouya-Daocheng Autoparts Ind. Ningbo Zhongda Valve Wick NitroFill Odyking Tyre (Qingdao Odyking Tyre) Ohio Rack Omni United USA Orange Electronic OTR Wheel Engineering

Parker Hannifin Corp./Tiresaver Patch Rubber Co./Myers Tire Supply PCL Air Technology PC Products International Perfect Equipment Pirelli Tire Plastic Advanced Recycling Corp.

Plombco Point S Prema Products Prestige Tires Qingdao Free Trade Zone Full-World International Trading Qingdao Free Trade Zone Hongtyre Industrial and Commercial Qingdao Milestone Tyres Qingdao Nama Industrial Qingdao Poplar Tire Qingdao Qihang Tyre Qingdao Rhino International Qingdao Toptour Tyre Corp.

Qingdao Victor Tire Import & Export Qingdao Yongdao International Trade QMI Ravaglioli Spa REDI-Sensor Rema Tip Top/North America RightPSI RSC Sales Rubber King Tyres India Pvt. Rud-Chain Safety Seal by North Shore Labs Sailun Tire Samik Corp.

Schrader International Sentaida Group Shandong Dawang Jintai Group Shandong Deruibao Tire Shandong Hengfeng Rubber & Plastic Shandong Hengyu Rubber Shandong Hongsheng Rubber Shandong Jinyu Tire Shandong Linglong Tyre Shandong O’ Green Tyres Shandong Transtone Tyre Shandong Wanda Boto Tyre Shandong Yongsheng Rubber Group Shandong Yongtai Chemical Group Shanghai Baolong Automotive Corp.

Shanghai Durotyre International Trading Shengtai Group Shifeng Juxing Tire Shuma Tyre International (Dingdao) Sicam USA/GRP Enterprises Signal Extraprise Snap-On Solideal Sonny Tyres South China Tire & Rubber Speedways Rubber Superking Manufacturers (Tyre) Pvt. Sutong China Tire Resources TBB Tires TCS Software Tech International Techking Tires TECO Automotive Equipment 31 Inc. Tianjin Century Rubber Tianjin Goodrun International Trading Tianjin United Tire & Rubber International Tier-Rack Tire Business/Crain Communications Tire Group International Tire Group of Factories Tire Industry Association Tire Profiles Tire Review Magazine Tire Service Equipment Manufacturing Tireco Tiremetrix TM Tyres Toho Kogyo Toyo Tires Tredtech Triangle Tire Tru Align Tube & Solid Tire Tweak Digital Marketing Tyres International Unicorn Tire Corp.

Universal Tire International Vee Rubber Corp.

Voxx Wheels Western States Manufacturing Wheel Products by McCourt Xingyuan Tire Group ZTI Tires Partial list as of July 10, 2011.

For the full exhibitor list or to register, visit SEMAshow.com/MTD

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Lead-free weights

Weighing in on lead-free wheel weight legislation The EPA wants lead wheel weights phased out nationally; 10 states have rules enacted or pending

A

By Bob Bissler

lead-free movement is spreading across the country. Lead wheel weights are on the way out, and many tire dealers have been required to make the transition to lead-free.

The state of California enacted legislation that prohibits the manufacture, sale or installation of lead wheel weights.

When it went into effect on Jan. 1, 2010, dealers weren’t given much time to make the transition. Some had to scrap their inventories of lead weights.

As a result, it was costly and inefficient, with inventory management problems and distribution issues for suppliers.

And, penalties for those who did not comply.

Tire dealerships in areas where lead legislation is being considered can avoid such problems. Even in states where discontinuing the use of lead is being suggested, tire dealers may want to consider taking control of their own conversions to avoid problems. Another plus to making the switch to lead-free: The business can then be promoted as an environmentally friendly “green” shop.

There’s another good reason to change over to lead-free alternatives. The United States Environmental Protection Agency (EPA) wants to eliminate the use of lead wheel weights. The EPA has requested the voluntary removal of lead wheel weights from commerce as soon as possible.

Another group in favor of phasing out the use of lead wheel weights is the Environmental Council of States (ECOS).

ECOS is a national non-profit, non-partisan association of state and territorial environmental agency leaders.

“The Environmental Council of States sent a resolution to the EPA acknowledging their research and encouraging them to phase out the use of lead weights nationally by 2013,” says Kevin Keefe, vice president of marketing for Hennessy Industries, supplier of Bada steel wheel weights.

“We’ve been engaged with the EPA for the better part of almost seven years on this subject.”

Still, many states are banning lead weights, and a growing number of automotive original equipment manufacturers are using non-lead products. Today, every North American vehicle manufacturer has made the switch. GM started it and they were followed by Ford, then Chrysler.

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Washington state’s lead wheel weight ban went into statewide effect on Jan. 1, 2011. The restriction states that anyone replacing or balancing wheels must replace lead wheel weights with environmentally preferred weights.

Violators can be fined up to $500 for a first offense.

“For environmental reasons, 3M supports ECOS’ efforts to phase-out lead,” says Kyle Lasenby, business and marketing manager, 3M Automotive Division.

“To help keep customers up-to-date on the latest developments, 3M distributed a news piece on the ECOS effort.

3M is a charter member of the EPA’s National Lead-Free Wheel Weight Initiative — and the only member that has never manufactured or sold lead wheel weights. The initiative is a voluntary effort to accelerate the transition away from lead wheel weights.”

In addition to Washington and California, there are three other states where laws have been enacted. Four more states have wheel weight legislation that is pending.

Vermont enacted legislation prohibiting the use of lead wheel weights on state vehicles, effective Jan. 1, 2010. A second rule goes into effect Sept. 1, 2011, that prohibits the use of lead wheel weights on any new motor vehicle sold.

Maine also has two lead-free laws. Effective Jan. 1 of this year, the sale, distribution or use of wheel weights containing lead or mercury was banned. Another rule, which goes into effect Jan. 1, 2012, prohibits the sale of a new vehicle with wheel weights containing lead or mercury.

In New York state, legislation has been enacted that prohibits the sale, distribution or use of wheel weights containing more than .1% lead on all used vehicles. The legislation went into effect April 1, 2011.

On April 1, 2012, a second rule becomes effective

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Lead-free weights prohibiting the sales of a new vehicle with wheel weights containing more than .1% lead.

Similar rules will go into effect Jan. 1, 2012, in the state of Illinois. One of the rules prohibits the sale or distribution of wheel weights containing .1% lead. The other prohibits the sale of a new vehicle with wheel weights containing .1% lead.

containing more than .1% lead on all used vehicles would take effect Jan. 1, 2013. Then on Jan. 1, 2014, a third rule would prohibit the sale or use of wheel weights containing more than .1% lead, on all new vehicles.

Keefe notes that in the prior administration, the EPA mainly took the stance of leaving the issue of banning lead up to the individual states. It was an issue that was bound to cause some Getting in on the enacting act backlash from the industry, and the EPA thought it would be Iowa has legislation introduced that would prohibit the use of better left to the states to abdicate. And that’s what happened. lead wheel weights during the servicing, repair or maintenance “California, New York, Illinois, Maine, Vermont, Washington of a vehicle. While it specifies no penalties, it also bans the and certain municipalities and other states have passed some use of lead wheel weights by car dealerships on new vehicles sort of lead-free wheel weight legislation,” says Keefe. “My guess is there will eventually be some national-level legislation on for sale. The legislation is still pending.

In Wisconsin a restriction is circulating it, but it will have a longer compliance that prohibits the sale, distribution or use of window than 2013.”

In order to help keep track of all the lead wheel weights on motor vehicles. lead-free rule making, 3M has set up a Rhode Island has two rules pending.

One would prohibit the sale, distribution Web site, www.3m.com/lead-free. The or use of lead wheel weights. The second site provides a state-by-state rundown prohibits the sale of motor vehicles with on legislation that has been passed, and lead wheel weights. also introduced. It also lists states that The state of Maryland has three rules have required the transition to lead-free that have been introduced. The first would on city and state vehicles. Lasenby says take effect Jan. 1, 2012, and ensures that Every year, 1.6 million pounds the site has been well-received by the state vehicles shall be free from wheel of lead wheel weights fall off of automotive industry. weights containing more than .1% lead. vehicles and wind up in the environ“The response has been greater than A ban of the sale or use of wheel weights ment, according to the EPA. we had anticipated,” Lasenby explains.

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Lead-free weights “We continue to update it with product and legislative information that helps our customers facilitate the use of our lead- free, corrosion-free product offering. It also offers education on the current legislative status, by state, to ban lead use.”

The Tire Industry Association (TIA) also wants to educate the industry on the switch to green wheel weights. The group recently issued its Environmental Best Practices on how to transition away from lead wheel weights. It is available to TIA members at www.tireindustry.org.

“As part of our commitment to helping to make the tire industry more ‘green,’ we are proud to be launching the first of a number of Environmental Best Practices on the important issue of how to transition away from lead wheel weights,” says Roy Littlefield, TIA’s executive vice president.

TIA says the first step is to contact suppliers and express a desire to transition away from lead. The most common alternative material is steel, but other non-toxic alternatives are also being used, including high-density polymers in specialty applications, and aluminum and zinc alloys.

TIA says to ask wheel weight suppliers if they have a program for recycling old wheel weights. Dealers can also check with an automotive battery supplier or a local scrap metal recycler for lead recycling.

TIA also suggests designating a storage space for the used lead wheel weights. The lead should be stored in a labeled container that is capable of handling the excessive weight of lead.

Another best practice is to ensure that no lead weights leave

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the shop as trash or litter. Lead wheel weights should not be left on bay floors or parking lots. They should not be allowed to fall into floor drains or storm water drains.

Last but not least, TIA says dealers should provide training to ensure that shop employees are conscientious about the need to treat lead wheel weights with special care. In addition, all employees who handle lead wheel weights should be instructed to wash their hands regularly for proper hygiene.

“The TIA Environmental Advisory Council (EAC) sees the creation of this first Environmental Best Practices document as the logical continuation of our work to make being ‘green’ more practical and profitable for those in the tire industry,” says TIA EAC co-chair Dick Gust. ■

Eco-friendly wheel weights Considering making the switch to lead-free wheel weights?

These manufacturers offer alternative wheel weight options: • 3M Automotive Division: flexible, tape-style wheel weights.

• IMI: a thermoplastic cartridge that is fixed in place; its free-moving steel particles readjust as the wheel moves.

• Hennessy Industries Inc.: steel wheel weights • Perfect Equipment Inc.: zinc and steel wheel weights.

• Plombco Inc.: zinc and steel wheel weights.

• Wurth USA Inc.: zinc and steel wheel weights.

MTD August 2011 8/11/11 2:28:02 PM

Commercial Tire Dealer™

“There’s more than a mile of copper wire that connects the solar panels to the grid on our retread plant,” says Pete Gerry, owner of Pete’s Tire Barns, one of the largest commercial tire dealerships in the U.S.

Environmentally focused Pete’s Tire Barns goes green and saves money

By Bob Ulrich

P

ete Gerry, owner of Pete’s Tire Barns Inc. in Orange, Mass., saves more than three million gallons of fuel per year thanks to his company’s green initiatives.

He also recycles 360,000 pounds of polyurethane and close to half a million pounds of rubber annually.

“It’s a direction we’re all going in order to survive, and it’s not as hard as it seems,” he says.

Being environmentally conscious also has improved his commercial dealership’s bottom line by millions of dollars a year. He earns $750,000 just by recycling batteries, building materials, metal (think wheel weights, brass valves and wheels), wood, rubber, polyurethane, plastic, cardboard, even ink and toner.

“We used to pay 15 cents a pound to have the polyurethane put in a landfill. Now we grind it into dust, mix it in with virgin material and resell it.”

All the recycling has helped reduce waste disposal from $1,500 to $193 a month.

Each of his 16 stores produces less than one cubic

yard of waste a week (compared to four to six cubic yards a week previously).

Gerry recently installed 850 photovoltaic solar panels on his retread plant. The panels cost $1,000 each, but they will power the facility with 170.10 kilowatts per hour of clean energy.

His main warehouse also utilizes solar panels — and electric forklifts. Just by reducing the temperature in the distribution center in the winter from 60 degrees Fahrenheit to 50 degrees F, the company saves roughly 8,000 gallons of heating oil per year.

As you might expect, Gerry gives his fleet of 14 box trucks the green treatment as well.

All ride on Michelin XZA3 fuel-efficient steer tires.

When it’s time to retread the drive and trailer tires, he uses Bandag Fuel Tech precure treads.

Enhance the environment and improve The vehicles are equipped your bottom line . . . 42 with road speed governors Goodyear launches truck service to prevent the trucks from network . . . 44

ALSO IN CTD

Commecially viable . . . 46

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Going green traveling at more than 65 mph. They also can’t idle for more than three minutes.

All fleet service truck bodies are aluminum so that they may be reused. Gerry estimates the lighter weight saves 1,100 gallons of gas a year.

The lift gates are galvanized to reduce the need for replacement due to the material’s resistance to rust. This also eliminates the need for yearly painting, which reduces emissions.

“We have ongoing driver training programs on reducing fuel consumption, with savings upward of 30%.

We are developing a program that will identify drivers who are able to attain fuel saving and sharing a percentage of those savings with the driver.”

Pete’s Tire Barns won’t run its box trucks faster than 65 mph.

And his customers have taken note of his efforts. fuel usage to zero(!) and turn his more than 100 company “Lots of our customers are interested in partnering with vehicles into an electric fleet. you if they can advertise that you are green.”

“It takes a lot of time and planning, but at the end of the Gerry says he is not done yet. He hopes to decrease his fossil year, all those little things add up.” ■

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Quik-Link: 800-687-1557 ext. 19116

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Going green Embrace the environment and improve your bottom line 32 money-saving tips from Pete’s Tire Barns Pete’s Tire Barns Inc. may be the most environmentally friendly commercial tire dealership in the world. Recycling is almost an obsession with owner Pete Gerry, who has embraced all things green, from fuel-efficient tires to solar panels (see pages 39-40).

Here is a list of some of the initiatives he has undertaken.

For a full list, visit www.greenretreads.com.

1. Our retread facility will save over one million gallons of oil this year. It takes approximately 29 gallons of oil to build a new tire and seven gallons to produce a retread.

2. Our retread facility will save approximately 160,000 gallons of oil this year by performing major repairs on truck tires and returning them to service.

3. We will recycle approximately 360,000 pounds a year of polyurethane to be used in our flat-proofing process, with a savings of approximately 18,000 gallons of oil per year.

4. With our earthmover and farm tire section repair facility, we will save approximately 65,500 gallons of oil that would be needed if we didn’t repair those tires.

5. Any time we undergo construction, we save the old building material. Any boards are recycled to a lumber yard, and bricks and cement are made into process gravel for pavement base.

6. All used brass valves, lead wheel weights and aluminum and steel rims are returned to our distribution center for recycling.

7. Small cardboard boxes are returned to the distribution center to be re-used for shipping tubes and flaps. The remainder is recycled at our local transfer station.

8. Used wooden pallets are returned to a pallet manufacturer to be repaired and put back into use.

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9. All lighting in stores is being changed to the most energy-efficient available.

10. Signage lighting is turned off to save electricity.

11. Distribution center forklifts are powered by electricity to save on diesel and propane costs, a savings of about $3,750 per year. The use of electricity also improves air quality and noise-reduction in the building.

12. We have installed air deflectors on the fronts of our large delivery box trucks, which will save approximately 400 gallons of diesel a year per truck.

13. We are running synthetic oil on transmissions, rear ends and wheel bearings that will lower rolling resistance, reduce friction and allow for longer draining intervals.

14. We have set the on-board computers in the delivery box to shut down the engines after three minutes of idle time and to not exceed 65 mph. With each 2 mph that the speed limit is reduced, we gain one-half mile per gallon.

15. Scrap tires are collected, shredded and burned for fuel in a power plant, saving approximately 5,000 gallons of oil per day from being burned.

16. We are working on a program that would reduce oil changes to intervals of as much as 20,000 between changes.

17. We have three locations that are burning waste oil for heat, saving approximately 5,000 gallons of heating oil per year.

18. All lead batteries are returned to the manufacturer for recycling of their components.

19. As a result of reducing waste, we have replaced most of our dumpsters with smaller (two-yard) containers, with collection reduced to every other week.

20. We will be baling any plastic waste material from our retread facility and then selling it for recycling.

Quik-Link: 800-687-1557 ext. 19118

21. Rubber removed while retreading (approximately 40,000 pounds per month) is sold and recycled into rubber floor mats.

22. We have changed the tires on our delivery box trucks to low rolling-resistance green tires, saving 8% to 9% fuel per year.

23. We have installed photo cell sensors on all lighting at our distribution center so that the lights will only turn on when there is movement underneath, saving approximately $5,000 per month.

24. Special light-emitting materials were used around the perimeter of our new three-acre distribution center to allow for natural inside area lighting, thus reducing electrical usage.

25. We have reduced the temperature in the Distribution Center in the winter from 60 to 50 degrees, which will save roughly 8,000 gallons ($40,000) of heating oil per year. We run 50% non-toxic biodegradable antifreeze in the heating system, allowing us to run at this lower temperature.

26. In the winter months, we are utilizing heat from our air compressors to heat our retread facility and service area.

27. We have installed fans in the distribution center to bring in warm air at mid-day when the outside temperature is over 50 degrees in the spring (and) fall to save burning fuel for heat.

28. We are replacing all lead balancing weights with steel and zinc to help keep lead from getting into the drinking water supply and to minimize handling of lead by our employees.

29. We are recycling copy and FAX machine toners by having them refilled and returned to us at a savings of 50%. We also are returning ink cartridges to the manufacturers for a recycling credit.

32. We installed an energy-efficient, refrigerated air dryer with true-cycling, reducing electrical consumption by better than 50%.

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Uni-Maxx Truck Care

Wingfoot Truck Care Centers, along with Bosselman Boss Truck Shops, are the first two members of Goodyear’s new Uni-Maxx Truck Care network.

Goodyear launches truck service network Wingfoot, Bosselman are Uni-Maxx Truck Care network’s first members

By Bob Bissler

T

Most locations will be at or near travel plazas. Locations will offer preventive maintenance and light mechanical repairs, which are not typically offered by traditional tire dealers.

“Goodyear will add network participants using criteria such as the ability of the potential participant to consistently offer the network’s products and services, and meet the network’s appearance and housekeeping standards,” Schrock explains.

The current Uni-Maxx Truck Care network operates 71 on-highway commercial truck maintenance facilities positioned to provide service to the trucking industry. Many of the network’s shops are located at Pilot Travel Centers and Flying J Travel Plazas.

Members of the Uni-Maxx Truck Care network will provide consistent products and services, a nationwide warranty and 24/7 roadside assistance. ■

he Goodyear Tire & Rubber Co. has formed a new on-highway truck service network, Uni-Maxx Truck Care. Wingfoot Commercial Tire Systems LLC, a Goodyear subsidiary, and Boss Truck Shops Inc., a subsidiary of Bosselman Inc., are the network’s first two members, participating through their on-highway Wingfoot Truck Care Centers and Boss Shops locations.

“Goodyear launched the network because many of our customers have requested a nationwide network of on-highway commercial truck service locations that offers consistent products and services,” says Clint Schrock, director of onhighway operations for Goodyear. “Uni-Maxx Truck Care will bring facilities like Wingfoot Truck Care Centers and Bosselman Boss Truck Shops together into one network that provides the trucking industry with high-quality preventive maintenance, plus tire-related, light mechanical and emergency roadside service.”

The network will not be limited to Wingfoot MAXXCARE is a card-based loyalty program that rewards drivers for or Boss, and Schrock said that the company will purchases at participating Wingfoot (currently, only Wingfoot Truck recruit its independent dealers to join.

Care Centers) and Boss Shop locations.

“I’m sure that if it was something made available The program rewards three points per dollar spent on preventive to us we would see it as an opportunity and I would maintenance services, and one point per dollar for other repairs at think that would be good for our business,” says participating locations. Points can be redeemed for eligible products Charles Wilson, CEO of T&W Tire, a Goodyear and service purchases at all participating locations. commercial tire dealer in Oklahoma City, Okla. “We To sign up for MAXXCARE, drivers can pick up a card at any participatgo pretty much 100% with all of their programs. ing Wingfoot or Boss Shop location, where a sales associate can assist We’re basically the biggest dealer they have of any in card registration, or visit www.maxx-care.net to sign up online. size in Oklahoma. They support us very well and we “We sincerely appreciate our customers and are honored that more try to support them in all of their programs.” drivers are asking us to maintain their trucks, so rewarding them for Schrock says that because Uni-Maxx is an on- their loyalty was an easy decision,” said Phillip Kane, Wingfoot’s highway network, access to major roads is required. president and COO.

Rewards program: MAXXCARE

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Quik-Link: 800-687-1557 ext. 19120

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Commercially viable Lack of inventory impacts truck market Despite posting a 9% increase from May’s lackluster sales levels, the Class 3-8 used truck market continues to be impacted by a shortage of available inventory, according to ACT Research Co. (ACT). Even with this most recent improvement, on a year-todate basis, the used market is 6% behind the 2010 sales pace.

“Used truck mileage continues to edge up, in response to fleets holding onto their equipment longer,” says Steve Tam, ACT’s vice president-commercial vehicle sector. “The market is still awaiting some relief to the shortage of sellable inventory as well as upward price pressures. Improving new truck sales will result in increased trade-ins, and should provide some relief to the market.”

The update comes from ACT’s “State of the Industry: U.S. Classes 3-8 Used Trucks” report on the average used price for the top-selling Class 8 major truck OEM models.

The OEMs include: Freightliner (Daimler); Kenworth and Peterbilt (Paccar); International (Navistar); and Volvo and Mack (Volvo).

Commercial Tire opens 35th outlet Commercial Tire Inc., one of the largest independent tire dealers in the country, has opened its 35th store.

The combination commercial and retail outlet is located in Rexburg, Idaho. Its Grand Opening is scheduled for Aug. 22.

“This community is growing at a rapid pace, and the new store fills a need for our commercial, agricultural and retail customers located in eastern Idaho,” says President Trent Schwenkfelder. Commercial Tire is a family-owned business based in Meridian, Idaho. It was established in 1968 by J.R. “Bob” Schwenkfelder.

With locations in Idaho, Utah, Oregon and Washington, Commercial Tire is 29th on the Modern Tire Dealer 100 list.

Titan establishes new mining subsidiary Titan International Inc. has formed a new company, Titan Mining Services. This new group will offer complete tire, wheel and track services for end users. The company’s first location will be Fort MacKay, Alberta, Canada.

Titan says it chose the location to begin these services because of the great amount of equipment used in the region.

Titan is partnering with Saskatoon Wholesale Tire Ltd., a company that has been in the area for a number of years and also represents Titan Tire.

“As we expand, Titan will be working with local businesses in all areas of the world,” says Titan Chairman and CEO Maurice Taylor Jr. “Titan is the only company worldwide who has the engineering expertise on wheels, tires and track components and we will be training many new technicians.”

Taylor states that Titan has been approached by a number of mines to offer this service and Titan plans to rapidly expand the business globally. Titan will announce shortly who will be heading Titan Mining Services. In the meantime, it will be operating out of corporate offices in Quincy, Ill. Titan International Inc. is a holding company that owns subsidiaries that supply wheels, tires and assemblies for off-highway equipment used in agricultural, earthmoving/construction and consumer (including all-terrain vehicles) applications. ■

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Severe-duty brake pads

Bendix Fleet MetLok disc brake pads from Honeywell Friction Materials are designed for emergency vehicles, tow trucks and other fleet vehicles subjected to extreme operating situations that require the maximum stopping power and reliability. The “fleet tough” friction material is integrally molded. Pads include slots and chamfers to mirror the OE design and they come equipped with high-quality steel insulators to help ensure quiet braking.

HONEYWELL INTERNATIONAL INC. Quik-Link: (800) 687-1557, ext. 19160 www.mtdquiklink.com/19160

Commercial jump starter

The Solar Model No. HT1224 commercial jump starter from Clore Automotive is designed to exceed the challenges of frigid weather and deliver instant raw power to 12- and 24-volt commercial batteries. The HT1224 delivers 1,400 cold cranking amps in 12-volt mode, and 800 cold cranking amps in 24-volt mode, making it ideal for fleet, industrial, construction, agricultural and commercial settings, the company says.

It also features an onboard 10 amp automatic battery charger for quick and easy recharging.

CLORE AUTOMOTIVE INC. Quik-Link: (800) 687-1557, ext. 19161 www.mtdquiklink.com/19161

Two new Michelin on/off-road truck tires

Michelin North America Inc. says its X Works XDY commercial truck tire from Michelin Americas Truck Tires is designed for strong traction in on/off-road applications. The new Michelin XDY-EX2 tire (in photo) is Michelin’s most aggressive drive axle tire for extreme operating conditions, such as logging, oil fields and mining. The X Works XDY tire provides enhanced durability due to a robust tread design.

The tire features extra-thick sidewall protection to guard against shocks, snags, impacts or other damage, and it is available in sizes 11R22.5 and 11R24.5. The XDY-EX2 tire improves on the last-generation XDY-EX tire, offering better off-road and mud traction from an aggressive tread design with more void area. With extra-thick sidewalls, the XDY-EX2 tire provides considerable protection from the shocks, snags and impacts typically associated with severe service. The tire is available in size 11R24.5.

MICHELIN NORTH AMERICA INC. Quik-Link: (800) 687-1557, ext. 19162 www.mtdquiklink.com/19162

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Quik-Link: 800-687-1557 ext. 19121

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8/11/11 2:56:29 PM

Business insight

Reaching the tech-savvy woman How to attract the car maintenance decision makers

W

hat are you doing in your business to attract the tech-savvy woman? Did you know, according to Delia Passi, CEO of womencertified.com, 80% of all car maintenance decisions are made or influenced by women?

Most women are tech-savvy.

And, that leads to a lot of buying decisions being made every day by tech-savvy women. Now the By Wayne Croswell question is not “if” or even “when” they will buy. The question is, “Will they buy from you?”

Traits of a tech-savvy woman So, who is she? The tech-savvy woman has continuous access to the Internet. She probably has a Twitter account and tweets or follows her favorite people and businesses regularly. She most likely subscribes to several blogs and possibly even contributes to them. She has a Facebook account and uses it daily. She has a cell phone that has e-mail, text and Internet access.

She loves a good bargain (81% of them look for the best possible deal) and belongs to multiple VIP clubs to receive text message marketing offers from them. She doesn’t know what a Yellow Pages book is, but she has heard of yellowpages.com and probably uses it.

According to Passi, “Safety and security are very important for women; especially, if they have young children, or teenage or college drivers.

“Women tend to be more proactive and will respond favorably to safety issues and preventive maintenance.”

Here are some simple things you can do to entice the tech-savvy woman into doing business with you.

1. Equip your showroom with free Wi-Fi. Most likely, you already have an Internet connection in your business and even wireless accessibility. To add an additional wireless connection for customers to use is very inexpensive.

2. Install an Internet station (computer) with a printer in your showroom. This will provide your customers with the ability to print documents, and help them get through some of their to-do list tasks while waiting in the showroom.

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3. Create a fun, clean and safe area for children to play in while they are waiting with their moms.

4. Provide complimentary beverages and snacks.

5. Offer loaner rides or loaner cars.

Those are only some basic actions that you need to consider. And, for the love of Pete (whoever Pete is), make sure you keep your rest rooms clean and family-friendly!

To really reach out to the tech-savvy woman, and the tech-savvy mom, visibly show that you participate in social networks like Twitter and Facebook. Encourage them to sign up for your sites. Reward them with coupons for future services such as discounted oil changes and tire rotations; it has been proven that they will sign up solely for the free offers being made.

Offer membership to a loyalty or VIP club, and use technology like text message marketing from MobiDitto to keep them coming back for service time and time again.

Put on your technology face Your business has a technology face. How does yours stack up to those seasoned at attracting the tech-savvy woman?

You need to determine what your target audience wants and then make sure you deliver what they are looking for.

Your technology face includes items like your Web site, Google Places, online advertisements, Facebook, Twitter, Yelp, coupons, Groupons, Buckaroo.com, Couptessa. com, reminder postcards with coupons and even billboard advertisements listing your Web site address.

Ask yourself, does your technology face do anything that speaks specifically to the needs of the tech-savvy woman? It’s time to make sure it does.

I conducted a survey at the beginning of the year to all females in the marketing and technical writing departments of a Fortune 1000 technology company. Here were the top three things they looked for in choosing a shop to bring their car to for service or tires.

1. Web site: Specifically, the ease of finding your Web site from either their PC or smart phone.

2. The ability to see prices for standard services such as inspections and oil changes.

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3. The ability to set an appointment online directly from your Web site. If not, a phone number that is very visible, even on smart phones where landscape is a premium.

Some additional comments worth noting include: • They wanted to receive a phone text notification a day or two before the appointment confirming the date and time.

• They preferred receiving a phone text notification when the vehicle service is completed.

• They would select one company over another if they were offering some type of coupon for free or discounted service or items.

• 100% of them indicated if the Site/ Dealer advertised that they were “Female Friendly” it would influence their decision to do business there.

Certified Female Friendly” by AskPatty.com or find out how to earn the “Women’s Choice Award” from womencertified. com. In a national survey of 4,000 women, nine out of 10 women would choose a Women Certified awarded business over the competition. ■ Wayne Croswell is CEO and president of WECnology LLC (see Web site www.wecnology.com) and is a “complimentary technology advisor” for independent tire dealers. He can be reached at (603) 249-5530 or wcroswell@wecnology.com.

When it comes to business software, you need to make sure that your software helps you in this process. Your software can and should be able to send phone text messages to your customers reminding them of upcoming appointments and notifying them when services are complete. You should be able to send them reminders for future services that include coupons relevant to the customer’s needs.

Your software should track information about the family such as major events in their family life, sports activities, big games, and likes and dislikes. This information should be used to create a welcoming experience when they are doing business with anyone in your company.

In the end, you want to create raving fans. You must exceed their expectations each time they do business with you.

These raving fans will tell their friends about their experience. In fact, they will probably Tweet it or post about it on Facebook. So make sure what they say about you is what you want them to say. You can increase their loyalty and desire to continue to do business with you and ultimately they will bring you referral business. It’s all up to you. Will you proactively attract this large segment of the market to your business, or will you leave it for the competition?

If you want to get the most out of this segment of the market, you should consider training for your staff. In addition, you might consider becoming “AskPatty

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Quik-Link: 800-687-1557 ext. 19122

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Business insight

Not just more business — business when you need it!

Target how people react to your advertising to increase sales

T

he one thing about advertising is that it is very hard to “aim.” Not the outgoing part, the incoming part.

People have gotten very good about targeted advertising. With the Internet, businesses can target very specifically the precise demographics of the people they want to reach. What is not so easy is targeting how people will

By Roger McManus react to that advertising.

Generally, advertising in the traditional sense (Yellow Pages, radio, newspaper, direct mail) will drive traffic if executed well. But a tire dealer does not necessarily want more business on a Saturday.

Same with golf courses, while dry cleaners are pretty busy on Mondays. You get the idea.

So, how do you drive traffic to visit you on a Wednesday morning or a Friday afternoon? You make them a deal.

You make it short-notice and make it for a specific time period. Most important, make sure the customer gets the message immediately before the target time when you want more business.

This is done using the latest technology sweeping the country (the world, for that matter), text marketing. Also called mobile marketing, this phenomenon relies on the fact that most people always have their cell phone with them and almost all phones today receive text messages.

Mobile marketing has been around for about five years, but the number of consumers who have phones which can fully utilize the technology is just now coming into the mainstream.

Over half of the population now has a “smart phone” and more than half of the balance have a “less smart” phone that still receives texts. All in all, over 85% of the U.S. population can technically participate.

So how does this help you?

Unlike e-mail, which is opened only about 18% of the time — and often days after it is sent, people who receive text messages open them within three minutes 90% of the time. Also, unlike e-mail, text messaging is rarely considered “spam” because (by law) the customer asks you to send them the text. Further, the consumer knows that to stop

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you from sending texts to them, they only have to reply “STOP” to your message, and the system (by law) will erase the consumer from the system that sends your texts.

It may be slightly different in the tire and auto service business because of purchase patterns, but, as was stated in Modern Tire Dealer last month, response rates for textdelivered offers can reach a phenomenal 20%! Compare that with direct mail of around 1%!

You invite the customer to get texts from you by offering them an “insiders club” of some sort, the members of which receive special, private messages from you when there is a deal going on or something of significance they need to know. So, if you want a little more business on Wednesday mornings, send a text to 200 customers in your list offering a deal on oil change, tire rotation or whatever you want to promote. You can send the message at noon on Tuesday and the deal can be good only from between 9 a.m. and 2 p.m. the following day. You decide!

Being a friend, not a vendor By having a select group of customers who consider themselves special in your eyes, the relationship changes.

They feel special and your messages reflect that. You do not always have to send sales messages, but can offer helpful hints that demonstrate your professionalism and caring.

Text messages are generally not sent more often than once per week. So during a given month, perhaps two of those messages are special sales opportunities and two others offer helpful information.

For example, a non-sales message might remind them when it is time to switch to winter tires — and run a deal for storing their summer tires “just for insiders.”

The point is, without being a pest, you are reminding your customers that you are in a special partnership with them to keep them safe. This goes a long way toward neutralizing the impact of “big box” advertisers trying to undercut your prices.

Mobile marketing is not free One of the pluses with e-mail marketing is that it is virtually free. Other than the time it takes to build and cull the list, pushing the button to send out thousands

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8/11/11 2:30:32 PM

Business insight of messages doesn’t cost anything. The problem is, many of them are deleted without being read.

Mobile marketing has very high open rates because consumers know that they are not getting junk from people they do not know. The system is built so that only those companies that have been invited by the owner of the phone can send messages to them. And, the permission is easy to rescind if they made a mistake. Also, it costs for every text you send.

The price depends on volume, but you can run a campaign with 500 customers for well under $100 per month. Imagine a

90% open rate with even a 10% response rate on an offer that yields only a $25 profit. That one text would have a net return of over $1,000 — and that is just from one text. Your costs are for a whole month of texts, reasonably up to four.

Consult the experts Let’s face it. Some people just are not cut out for the computer, cellular or Internet world. Others find it easy. Regardless, you can get help with any campaign you might run. The process is easy, but it takes dedication to remember to send a message on a regular basis. Text messaging companies send messages for you, they do not write them.

One company long associated with the tire business, WECnology, is in the business of making technology easy for those less familiar with it. Wayne Croswell, Tire Industry Association president last year, helps tire dealers specifically with the technology side of their businesses. He has become a quick study on the topic of text marketing (see his article in the July issue of MTD on the subject), and will help dealers who might be confused or intimidated by it. WECnology even has a service that writes texts for dealers and schedules them to get out on a regular basis.

In a recent conversation with Wayne, he told me, “Text marketing is so new, only about 2% of all businesses are using it at this point. Those who jump in now will enjoy a relationship with customers unlike almost any of the other companies they deal with in their daily lives.”

What’s coming next Right around the corner is a smart phone-based system that will allow you to make special offers to pre-sell services at a discount, have customers pay for them right on the phone and let the customer take delivery later. The ramifications of this are significant.

Groupon has made a big splash doing exactly that. You offer a $50 service for $25. The customer pays Groupon $25 and Groupon sends you $12.50. This is great for getting new customers, if you have a way of keeping them since receiving cash for only 25% of the retail price is usually a loss-leader. (Of course, one way to keep them coming back is to get the customer to opt-into your text marketing program! Groupon, and others like it, is a one shot deal.)

With the new technology, you will be

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10 things you can do with mobile marketing in your tire store 1. Build a list of customers who have asked to be contacted.

2. Send special deals to your customers that are good at the precise times when your shop is slow.

3. Generate immediate capital by offering a Groupon-type deal where the customer pays a discounted amount for a future service.

4. Send a public-service message about a local road condition (like a tire-damaging pothole on Elm Street).

5. Send an interest-creating survey about a local issue — post results in your store – or text them to your list — generating more visibility for your store.

6. Create a loyalty program with a “punch card” program where a “punch” involves letting your customer scan a QR code (see below) with his or her phone. So many “punches” makes a selected service free.

7. Send your customers full color coupons — complete with barcodes, if your register reads them.

8. Cross-promote to your list of customers with another non-competing merchant with a list of his or her own.

9. Set a reminder appointment for some period on the future (oil change in four months) and let the system remind the customer automatically.

10. When the customer gets the reminder, let him or her use a single key to accept an appointment or postpone it or request that you call.

able to send an offer, get the customer to pay immediately on the phone and the system will automatically send back a full-color, bar-coded coupon that you can scan (and immediately disable) right from the customer’s phone. No Groupon-type fees — you keep all of the customer’s payment for the discount coupon.

Text marketing is a technology that will exceed the communication power of the

Internet — certainly e-mails — in the near-term years to come. Pay attention. It could make you lots of money. ■ Roger McManus is author of “Entrepreneurial Insanity in the Tire Industry,” a new book available through the Tire Industry Association’s Web site at www.tireindustry.org to or directly from Amazon. Write to him at roger@ensanitypress.com.

QR Code Practice: If your smart phone does not have a barcode reader, download one for free by opening the Internet on your mobile phone and downloading a reader from http://www.getscanlife.com. (There are dozens available for free, this is just one.) Then use it to scan the QR code below. This will send you even more information about how to do everything described above.

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Quik-Link: 800-687-1557 ext. 19125

53 8/11/11 2:30:40 PM

Business insight

Sales horsepower Closing the deal more often begins with changing your culture

By Doug Trenary Doug Trenary, president of Doug Trenary’s FastTrack Inc., is an award-winning author, speaker and teacher who since 1985 has helped companies of multiple sizes, including independent tire dealerships, increase sales and productivity. He was a featured speaker at the 2011 Goodyear Dealer Conference, and is developing a fast-growing presence in the automotive industry. His book, “The SalesMind,” focuses on how to maximize your time and establish strong positions with your team and your buyers.

I

f you are an owner or manager, it’s no big secret: You want more sales. Faster sales.

Less costly sales. All in a tight economy. “At Clark Tire & Auto, we have created a whole mix of If you are a store sales associate or commercial custom training approaches,” says Doug Trenary (left, representative who makes outside sales calls, pictured at a Clark Tire training seminar). you’re always in search of strategies to close more business. that you constantly remind your store or division team Whether you are a retail dealer, supplier, wholesaler, about the endless opportunities with vehicles. You can have a commercial truck operation — or all of the above legitimately add-on sales of brakes, wipers, hot acces— sales issues are (or should be) always high on the radar. sories — the choices are endless. Opportunity abounds, Companies that weather the storms of an economy, yet so take advantage of it! continue to grow and prosper, without question have built Second, recruit and a certain culture of success. What is that culture? hire the right For 26 years, my focus has been helping companies and people for the individuals build this atmosphere. Is it easy? Of course job. There is not. Is it definable? Yes. I call it being a “SalesMind.” In no substitute terms of your operation, one of your key missions every for talent. The day should be to maximize every possible aspect of a most elasticity SalesMinded culture. Let me challenge you to consider in productivand apply these thoughts. They are proven to generate ity (more qualimmediate, measurable, financial results. ity work every hour) you’ll ever Three steps to better results get is with an emFirst, keep in perspective that you are in a great busi- ployee with the ness, and share that exciting view with your team! Your right capabilities. sector (something with wheels) is massive: an estimated With that baseline, one-tenth of the gross domestic product in the United you can train them m States. That’s approximately $1.5 trillion. The automotive to do the rest. business is fairly recession-resistant, not to say you haven’t Third, when youu taken some hits. People will give up a lot of things, but have the right team m not their car. At least your industry has not been blown mix, train them Th Through hD Doug T Trenary’s ’ b book, k to pieces by this economy, nor has it, like so many other and retrain them! “The SalesMind,” business ownindustries, been knocked out by technology.

That way, you are ers and salesmen can strengthen The car and truck are here to stay. Make sure as a leader taking talent and their business relationships.

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stretching it to whole new levels. We have major manufacturer and dealer clients right now increasing sales and close rates, and dropping dollars to the bottom line, because they are getting their personnel focused, skilled, and profitable!

One of the worst mistakes, and I hear this all the time, is to “wait for the right time; slow season, etc., to do training.” Every minute you don’t sharpen saws, you’ll waste the greatest asset you have — the minds and talents of your team — and increase the greatest “hidden” cost you have — them not being able to sell as much as they can as fast as they can.

Let me say this again: You lose time and serious money when your employees’ skill saws are not razor-sharp. This is the essence of being a SalesMinded company.

Leveraging skills and more So what can you do as a leader right now to increase sales and lower sales costs?

1. Leverage (get the most out of) attitudes. Maximize the drive, desire, optimism and energy of every one of your employees!

Every study ever done says that a buyer is influenced by sellers who have good attitudes, smile, show empathy, and offer great service because they really care. There are a lot of things you can’t control, but the one standard in your company you can control is that “we will get the best out of ourselves!”

2. Leverage skills. You’re the seller, and customers and prospects are the buyers. You have products and services, and they have needs and money. Trade the two with skill. Some of the training keys I do in-house with clients are to role-play objections/answers at the counter to close sales instead of losing them, write scripts of what to say, practice asking key questions and listening, use the phone effectively to get buyers

in the door when they call in, and have reasons to call them back to get them back in — and the key is to do it all in a lowpressure way. This kind of training gets real monetary results.

And real dealers are getting them (see sidebar).

3. Leverage associates’ time. Make sure your associates are doing the most productive things first (not last), that they work on the things and situations they don’t like to do, and that each of them keeps making adjustments in how they speak and interact.

Finally, some words about information overload. You must make sure as an owner or manager that every member of your team is securing information on call-ins or walk-ins for follow-up and repeat business — and make sure there are simple systems in your company to make certain information is not drowning your employees. Un-captured, lost or unused information is lost money.

Next month, I’ll address how you, the leader, shape the sales effort. I refer to this as “here’s your role in developing a SalesMinded dealer team.” At the end of the day, the SalesMind wins. Make sure that’s you! ■ For a free copy of Doug Trenary’s special report, “Five Hidden Keys for Dealers to Close More Sales,” send an e-mail to info@ dougtrenary.com. As Trenary would say, your bottom line will be glad you did! For more information on Trenary’s results-getting work, visit www.dougtrenary.com or call (404)-262-3339.

Three dealers who ‘get it’ Trenary shows them how to maximize their selling skills Doug Trenary, author of “The SalesMind,” has taught a number of independent tire dealers the art of leveraging their skill sets. Here are three examples.

“At Clark Tire & Auto, an 18-store retail chain based in Hickory, N.C., we have created a whole mix of custom training approaches,” he says. “We’ve role-played answering ‘your price is too high’ (ever heard that?) in teams, and closing rates (sales) went up. I’ve been in the field with their commercial trucking reps working on following up on proposals, smoking out hidden needs, and asking specific closing questions. The questions worked,

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and new retread customers were added that day instead of the reps having to call back.

“I asked owner John Clark why his teams were getting results from the training. His answer? ‘Because we are doing something different. If we just do the same things we always have, we’ll just get the same results, but we want to move up to the next level.’

“At Burggraf Tire Service, a retail and wholesale dealer based in Quapaw, Okla., we are in process with a multi-session training program that focuses on having their leaders incorporate ‘action plans’

with their associates. This, in turn, has led to these managers being able to reshape their own priorities, empower their store teams, and focus on sales growth and dealer support for their growing wholesale division.

“At Raffield Tire-Master, a nine-store retail and commercial dealership based in Macon, Ga., we incorporated a dual program of live training with their store managers accompanied by their use of my book and DVD products in their weekly meetings as brainstorming tools on how to creatively add more value for every customer.”

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Counter intelligence

Has value lost its value?

Your job is to convince customers a better tire is a better deal

I

n last month’s article, the topic was Michelin tires, Bayer aspirin and Fiji water: How are these manufacturers able to charge a premium price for their products when other products of similar quality and benefits are available at substantially less money?

The answers vary, of course, but the “perception of value” is key to “marketing for margin.”

By Wayne Williams It’s hard to argue with success — having customers whose experience with a product meets or exceeds their expectations. If Bayer aspirin has been relieving your back pain for years, why would you switch to a “no-name” brand for $4 less? Most of us have had the experience of a consumer standing at the sales counter requesting a replacement set of Michelins because they received over 80,000 miles on their original set. Why “risk” more back pain or fewer miles on some other brand?

Michelin and Bayer have earned their reputations through quality products, margin-driven marketing, and decades upon decades of satisfied customers. Every business must make a reasonable margin to stay in business, and to stay in business, a business must offer value, real value!

“Webster’s Dictionary” states the definition of “value” is the worth of a thing in money or goods at a certain time; the market price; a fair price; the quality of a thing according to which it is thought of as being more or less valuable, useful or desirable.

Because my clients are a combination of tire retailers and distributors, and because I hear a wide variety of comments and concerns every day, I feel I have a “feel” for the trends and what I might call the “emotional buzz” in the industry.

I’m sensing what I’m going to call a “heavy weariness,” a weariness beyond the normal daily grind, and it stems from two distinct and unique trends that we’ve not experienced

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in recent decades. Usually, when business is down or growth is minimal, tire prices decline. This is certainly not the cause today with frequent price increases that are sticking.

Secondly, the economy has been struggling and continues to struggle. Unemployment is high, and wages are not keeping pace with inflation. This current combination of events/trends is putting pressure on distributors, retailers and consumers.

I have witnessed several irate customers who had purchased two particular tires months earlier and now felt they were being overcharged for the identical additional two tires.

While speaking with an “informed, skilled and professional” management employee at a respected distributor, he blurted out in frustration, “Where’s the value of value? Everything seems to be price, price, price!” He’s feeling the pressure from the retailer, who’s feeling the pressure from the consumer.

Manufacturers have been feeling the pressure from raw materials, shipping costs, emerging markets, etc.

My personal belief is that water seeks its own level, and products find their value in the marketplace. Tires have been undervalued for decades, and there is a shift by worldwide producers of tires to stabilize reasonable operating margins and develop products that consumers and governments demand. We are in a new reality as vehicle and rubber manufacturers try to squeeze every mpg out of every vehicle, and governments continue to raise CAFE standards as tires and proper tire fitments have, and will continue to become, substantially more complex and sophisticated.

Although tire manufacturers continue to attempt to communicate the additional value of their products to the variety of channels of distribution, the message has not really hit home yet.

I totally agree with my friend in the industry, “Where’s the value of value?” I believe that tires are worth the money, the current market price. What is needed is some hard-core selling, some real, hard-core value presentation.

Yes, customers want a good price; surveys show they also want a good tire. All the surveys show that customers want value. Most customers don’t/can’t really understand the value unless it’s explained in terms that make sense, in ways they can understand. The gap or difference between the price of a 40,000-mile tire and an 80,000-mile tire is not as wide as it once was, and with all the additional fees and add-on charges, the gap gets smaller.

Consider the added value represented in this comparison (see chart) which represents real value to a customer: Better tires are a better deal. ■ Wayne Williams is president of ExSell Marketing Inc., a “counter intelligence” firm based in La Habra, Calif. He can be reached at exsellmkting@gmail.com.

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TPMS

Low- and high-line versions of TPMS receivers on the Hyundai Elantra An exciter scan tool is needed to perform TPMS service SUBJECT VEHICLE: 2008-10 Hyundai Elantra.

SENSOR IN TIRE? No, sensors are mounted in the wheels.

SPECIAL TOOLS NEEDED? Yes, a TPMS exciter scan tool.

The tire pressure monitoring system (TPMS) on 2008-10 Hyundai Elantras uses a receiver that is available in lowline and high-line versions. There are four radio frequency (RF) tire pressure sensors, two warning indicators on the instrument cluster and a data circuit to perform system functions. Vehicles with high line systems have three warning indicators and include four low-frequency initiators (LFIs).

When tire pressure is below the allowed threshold, or a rapid leak is detected, the low pressure warning light on the instrument cluster will be illuminated.

On vehicles with a high line system, a Figure 1 tire location light also will illuminate to indicate the faulty tire.

If the system detects a receiver or sensor fault, or if it detects a fault that is external to the receiver or sensor, the TPMS warning indicator on the instrument cluster will be illuminated. If the fault is considered “critical,” the light will stay on throughout the entire ignition cycle.

In order to remove an old sensor and install a new one, follow these steps:

1. Remove the wheel and tire assembly. CAUTION: Avoid tire/tool contact with the valve while demounting the tire.

2. Deflate the tire and remove the balance weights. The bead should be broken about 180 degrees from the valve side of the wheel. The bead breaker should not be set too deep. Demount should end near the valve. CAUTION: The valve nut should not be re-used.

3. While handling the sensor with care, remove the valve nut.

4. Discard the valve immediately.

5. Assemble the valve to the sensor, and turn the valve three times with the square part of the screw in the slot. See

Figure 2

Figure 1. CAUTION: Ensure the sensor feet are against the wheel throughout the remainder of the assembly process.

6. Ensure that the valve hole and mating face of the wheel are clean. Mount the assembly to the wheel. The fit should not be tight (it should still be possible to easily adjust the valve angle). CAUTION: Ensure the grommet remains in contact with the wheel.

7. Tighten the washer and nut by hand until the valve thread meets the nut’s built-in calibrated stop.

8. Using an appropriate torque wrench,

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nut snaps and the torque falls. Increase the torque smoothly in order to achieve a clean break of the stop.

9. Lubricate the tire bead (not the rim). Do not use excessive lubrication.

10. Start mounting the tire about 5.9 inches from the valve.

Move the mounting tool away from the valve. Avoid tire/ tool contact with the valve. Finish with the mounting tool near the valve.

11. Adjust inflation pressure of wheels. Install the valve cap.

12. If installing a new sensor, it must be initiated.

To initiate the tire pressure sensor, follow these steps: 1. Holding the TPMS exciter scan tool within three inches of the sensor valve, read each tire pressure sensor ID in the following order: front-left, front-right, rear-left, rear-right.

2. Connect the TPMS exciter to the Data Link Connector located under the left side of the instrument panel. Register the four sensor IDs to the receiver. See Figures 2 and 3.

3. Disconnect the TPMS exciter from the diagnostic link.

Cycle the ignition and wait four minutes. Ensure that “NORMAL RECEIVER STATE” is displayed. ■ Figure 3

tighten the nut to 31 to 40 in.-lbs. (3.5-4.5 N.m). It is normal to feel a break as the 20 in.-lbs. (2.3 N.m) calibrated stop in the

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Information for this column comes from Mitchell 1’s ”Tire Pressure Monitoring Systems Guide” for domestic and import vehicles through 2010. Headquartered in Poway, Calif., Mitchell 1 has provided quality repair information solutions to the automotive industry for more than 80 years. For more information, visit www.mitchell1.com.

Quik-Link: 800-687-1557 ext. 19128

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NVH solutions

2003 Mercedes SBC brake system A technician’s best tool is information on how the components work SUBJECT VEHICLES: 2003 to 2006 Mercedes E, CLS, and SL Class vehicles.

COMPLAINT: Message indicating worn brake pads.

CAUSE/SOLUTION: Front/rear brake job needed on vehicle with Sensotronic Brake Control. See following directions for correct steps in servicing this system.

They’re just brakes, right? I still remember the day some years ago when a customer came into the shop where I was working. He wanted to know why a warning message was displayed on the instrument cluster of his 2003 Mercedes E-class. The message indicated worn-out brake pads. Further inspection determined that a front and rear brake job was needed. The customer declined the work and took the car home.

The next day went a little like this: A customer went to the parts department and purchased front and rear brake parts for a 2003 Mercedes E-class. Within a few hours, the parts department received a call asking how much new front and rear brake calipers cost for that same vehicle. This was immediately followed by a call to the shop asking how much labor would be involved to replace all the brake calipers.

Anyone who is not fully aware of the type of brake system that is installed on the vehicle can make this mistake. The customer failed to read the safety warnings that came with the brake pads, or he would have noticed that this is not your average do-it-yourself job.

The Sensotronic Brake Control (SBC) is a type of brake system used by Mercedes, similar to the throttle-by-wire

Figure 1

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systems that most technicians are familiar with. SBC has several components that, visually, appear no different from any other ABS-equipped car. SBC has a hydraulic pump/ control unit, normal brake calipers, and what looks like a master cylinder with fluid reservoir. Although it may look like other ABS systems, there are more brake lines, hoses and wiring; no brake booster; and the pump runs a lot more. This is just what you see on the outside.

What you don’t see is that the complex operation of the SBC has the capability to perform all traction control and ABS operations that are needed at each wheel, separately from one another, without any feedback at the brake pedal.

Not only does the SBC apply the brakes before you even get into the car but it can apply the brakes when the wipers are turned on so that the brake pads stay dry. The control unit for the SBC is in constant communication with all of the vehicle’s engine, transmission and body systems.

Several components located in the engine compartment are special to the SBC (see Figure 1). The Brake Operating Unit or BOU (Figure 2) is what most would call a “master cylinder.” The BOU contains a pedal sensor so the control unit knows how fast and how far the brake pedal is being depressed. It also has a brake pressure simulator that incorporates a couple of springs and a floating piston so that the brake pedal feels like a normal master cylinder to the driver. The simulator is needed since there is no direct hydraulic contact between the brake pedal and the brake calipers under normal operation.

The SBC hydraulic unit itself (Figure 3) contains the high pressure pump, pressure reservoir and the SBC control module. Like other Mercedes control units, this module is programmed to the car using factory tools.

A factory type scan tool is needed to correctly test and service the brakes on this system.

For example, if the brakes need to be flushed, a factory scan tool performs activations of the pump and solenoids in the hydraulic unit to remove all air, along with prompting the technician as to what bleeder screw to open and the pressures to set the pressure bleeder.

This takes us back to the beginning of this story. The customer did not deactivate the SBC before working on the brakes. It is necessary to deactivate the SBC to prevent buildup of brake pressure to the brake calipers.

If any work being done on the car involves removal of the calipers, the SBC must be deactivated or the brakes may apply themselves during the repair.

All it takes for the system to apply the brakes is for

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Figure 2

Figure 3

someone to open a door, operate the locks, open the trunk, depress the brake pedal, and, of course, turn the key on. You can only imagine what can happen if a hand is in the way when there is over 900 psi applied to the calipers.

Like the case of the customer performing his own repairs, you could end up with all four caliper pistons and 1.5 liters of fluid on the garage floor.

The SBC is very expensive, so not every Mercedes is equipped with this system. It is mainly found on the 2003 to 2006 E, CLS and SL (The SL may include newer models). The trick is to know what to look for and how to safely repair these cars. Even if you don’t have a scan tool that does the deactivation and reactivation operations, a series of steps can be performed to manually deactivate and then reactivate the SBC. Since the process is a bit long, I suggest reading the instructions completely before starting the work.

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One other item to be aware of: noise.

In order to maintain the proper amount of operating pressure, the hydraulic pump needs to run after a couple of pedal applications. This constant turning on and off of the pump can be questioned by customers as a possible problem. To help determine what is normal, Mercedes has provided some service bulletins on the subject.

Some noises that are not inherent to the design of the SBC system require updated hoses, possible bleeding of air trapped in the system, or a soft ware update of the control unit itself. Some require the factory tool to perform.

Overall, the SBC system works quite well, but in order for it to be maintained properly, the technician’s best tool is information on how it works. ■ Information provided by Identifix Inc. For more information, call (800) 997-1674 or visit www.identifix.com.

Quik-Link: 800-687-1557 ext. 19129

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Focus on dealers

A celebration of distribution Kauffman Tire thanks its wholesale customers

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auffman Tire Inc. had only two warehouse distribution centers in Ohio at the start of 2010. One is located in the Cleveland area in northeastern Ohio. The other is near Cincinnati in southwestern Ohio.

The distance between the two is 213 miles as the crow flies.

As you might expect, the drive distance is longer.

To better serve its customers in the center of the state, Kauffman Tire decided to open a warehouse in Lockbourne, Ohio, near Columbus. The company recently celebrated the warehouse’s first anniversary in July with special pricing for its customers — and a tour of the 55,000-square-foot facility.

The Lockbourne warehouse has more than 20,000 consumer, truck, farm, small OTR, industrial and specialty tires in stock. It can store an estimated 50,000 tires. “When we start up a warehouse, we build to the customer base,” says Nelson Waynesboro, vice president of wholesale operations.

Kauffman Tire wholesales 16 brands: Goodyear, Cooper, Toyo, Pirelli, General, Dunlop, Kelly, Kumho, Alliance, Continental, Starfire, Titan, Otani, Carlisle, Achilles and Gladiator.

Wholesale Manager Brian Kelly says the facility was designed to give every manufacturer its own section.

Kauffman Tire has 13 warehouses in six states. ■

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1. Marc Voskeritchian, left, north central regional sales manager for Carlisle Transportation Products, gives information about the company’s specialty tires to Bill Davenport, owner of Bill’s On Broadway Auto Repair & Service in Grove City, Ohio. 2. Ali Cardenas, area dealer manager for Continental Tire the Americas, shows off the company’s Continental ExtremeContact DWS UHP tire, in size 315/35ZR20. 3. Brian Barrows, right, regional sales manager for Kumho Tire U.S.A., is joined by Kauffman Tire’s Nelson Waynesboro, vice president of wholesale operations, at the Kumho booth. 4. Plenty of customers came by for swag from the booths, including signed Pirelli posters by model Namiah Covell (far right). 5. Harry Kauffman (left, negotiating with a Goodyear sales rep) founded the company in Wooster, Ohio, in 1936. Seventy-five years later, his son, John, is CEO, while John’s son, Mark, is president. 6. From left to right: Luis Carbonell, district manager, consumer sales; Karen Zaro, account manager; and Ed McMahon, customer development manager, man the Goodyear booth.

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