Modern Tire Dealer - February 2023

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UPGRADE YOUR POINT-OF-SALE SYSTEM

UHP TIRES The next evolution

WHY THE CUSTOMER ISN’T ALWAYS RIGHT

OTR TIREMAKERS FORECAST BIG YEAR FOR CONSTRUCTION TIRES

Constant evolution

Performance tires aren’t just focused on speed anymore. Rolling resistance, noise and other features matter, too

30 Stock ‘em to sell ‘em

Selling UHP tires starts with having the right inventory

32 TGI has big plans for

Company to focus on growing domestic business in 2023

36 When ‘business as usual’ isn’t good enough

Upgrade your point-of-sale system to keep up with changing technologies, customer needs

40 Golden Tire Iron contest shows appreciation for techs

Competition recognizes ‘backbone’ of Belle Tire’s business

42 Pulling out the stops

Dealers share proven tips for marketing, selling brake service

Commercial Tire Dealer™

44 Building up and out

OTR tiremakers forecast big year for construction tires 52

AG Tire Talk

When should R-1/R-1W tires be replaced?

Photo: Butler Tires and Wheels

Tiremakers see good signs ahead for the construction industry — as well as the construction tire segment — in 2023.

Photo: CMA

By

Mike Manges

Speak up now — while you can

CALIFORNIA MOVES CLOSER TO SETTING FUEL EFFICIENCY MANDATE

In the September 2021 issue of MTD, I wrote about the California Energy Commission’s (CEC) plan to establish a fuel efficiency standard and rating system for replacement passenger and light truck tires.

Under the potential mandate, replacement consumer tires sold in the state would be required to match or exceed the rolling resistance levels of original equipment tires.

At the time, a representative from the CEC told me that the commission was “gathering data on all passenger vehicles and light trucks operating in California, including their tire make, model, size and trim.”

He went on to say the CEC was in the process of “examining tire efficiency test data conducted over time; collecting data on OE tires for new passenger vehicles and light trucks; and exploring methods to present and display tire data to consumers to enhance purchase decisions.”

The CEC representative also told me that the above process “can typically take one year to complete from the informal start date.”

Nearly 18 months after my editorial was published — and having not heard anything on the topic since — I decided to check in with the organization for an update.

A spokesperson from the CEC responded that the commission “has continued to research energy efficiency of replacement tires and has routinely met with industry and governmental entities, including the Tire Industry Association.

“The goal remains to establish a tire efficiency rating system and minimum performance tire efficiency standard for replacement tires sold in the state of California.

“The CEC plans to additionally develop a tire information program to educate consumers about tire efficiency at the point of sale.”

The commission “has used data from the California Department of Motor Vehicles and the California Air Resources Board to determine other beneficial impacts of increasing replacement tire efficiency, which includes reduced pollution and improved public health.”

The CEC has not set a hard deadline for establishing its fuel efficiency mandate,”but is eager to move quickly to save drivers money and reduce harmful air pollution in our communities.”

All of that sounds noble, well and good. But I maintain that these advancements should not come at the expense of California’s independent tire dealers and their customers.

I still believe that a mandate could not only limit consumer choice, but also limit a dealer’s ability to sell what he or she wants — based on the customer’s budget and preference.

Not all customers will be able to afford higher-priced tires that can meet or exceed whatever rolling resistance target the CEC will require.

Not all tire manufacturers have the ability to hit stringent fuel efficiency targets.

And not all dealers will want to alter their product screens to meet new mandates — nor do I believe they should be forced to do so.

Another thing to keep in mind is tire fuel efficiency regulations that start in California have a way of extending beyond the state’s borders.

I can’t think of a better example than the California Environmental Protection Agency’s nearly 20-year-old SmartWay program, which established fuel efficiency standards for commercial truck tires operating inside California.

SmartWay was “California-only” at first. But the program had far-reaching impact as truck tire manufacturers reconfigured tread designs and compounds to meet its targets.

The kicker? Only a handful of tiremakers at the time had the wherewithal to hit the magic SmartWay number.

Fast forward to today. Do I think we’ll see a passenger and light truck tire fuel efficiency mandate tomorrow or next week? No.

While there’s still time to help educate the CEC about the impact of a potential mandate on your business — or your fellow tire dealers’ businesses — you should seize the opportunity.

You can submit your comments and thoughts via the CEC’s website at https://efiling.energy.ca.gov/EComment

The commission wants to hear from our industry. That includes you.

Let’s do what we can to protect your freedom to sell what you want, while preserving your customers’ freedom to pick the best product that fits their situation. ■

If you have any questions or comments, please email me at mmanges@endeavorb2b.com.

California wants feedback from tire dealers on the potential impact of consumer tire fuel efficiency regulations.

Photo: Getty Images/ PeterHermesFurian

IF TIRES TALK… COULD

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PUBLISHER

Greg Smith gsmith@endeavorb2b.com

(330) 899-2200, ext. 2212

EDITORIAL

Editor: Mike Manges, ext. 2213 mmanges@endeavorb2b.com

Managing Editor: Joy Kopcha, ext. 2215, jkopcha@endeavorb2b.com

Associate Editor: Madison Gehring, ext. 2216, mgehring@endeavorb2b.com

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Art Director: Kayla Burger

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MARKETING STRATEGISTS

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Marianne Dyal mdyal@endeavorb2b.com

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Dan Thornton dthornton@endeavorb2b.com

(734) 676-9135

Tire dealers are kicking off the new year by finding ways to operate even more efficiently. And they are turning to MTD for proven ideas and approaches they can implement at their locations.

Photo: VIP Tires & Auto

Dealers turn to MTD for best practices

The start of the new year is a logical time to research and invest in new practices to improve business. Tire dealers have been doing plenty of work to learn how to get started on the right foot. Whether it’s studying the best ways to compensate employees, learning how to break old habits or more, MTD readers are setting themselves up for growth in 2023. Here’s a look at the top stories from the last month.

1. Employee shot, killed at Tires Plus Store

2. New players entered U.S. truck tire market in 2022

3. Is your bonus program ineffective?

4. Trends that will impact your business in 2023

5. Acquisitions push Tire Discounters to nearly 200 stores

6. Are old habits holding your business back?

7. TGI has big plans for Cosmo brand, U.S. market

8. Dealers continue to find climate ripe for acquisitions

9. Discount Tire reveals plans for new corporate HQ

10. Yokohama announces organizational changes

Sean Thornton sthornton@endeavorb2b.com

(269) 499-0257

Kyle Shaw kshaw@endeavorb2b.com

(651) 846-9490

Martha Severson mseverson@endeavorb2b.com

(651) 846-9452

Chad Hjellming chjellming@endeavorb2b.com

(651) 846-9463

MTD READER ADVISORY BOARD

Rick Benton, Black’s Tire Service Inc.

Jessica Palanjian Rankin, Grand Prix Performance

John McCarthy Jr., McCarthy Tire Service Co. Inc.

Jamie Ward, Tire Discounters Inc.

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CEO: Chris Ferrell

President: June Griffin

CFO: Mark Zadell

COO: Patrick Rains

CRO: Reggie Lawrence

Chief Administrative and Legal Officer:

Tracy Kane

EVP Transportation: Kylie Hirko

VP Vehicle Repair: Chris Messer

‘You have to raise the bar continuously’

ASCENSO TIRES NORTH AMERICA ENTERS NEXT PHASE OF GROWTH

With a new name, a new distribution center and new products, Ascenso Tires North America (ATNA) — previously known as Tyres International — is ready for its next phase of growth under the ownership of Mahansaria Tyres Private Ltd. (MTPL).

MTPL — which is headquartered in Mumbai, India, and owned by o -highway industry veteran Yogesh Mahansaria — acquired majority stake in Tyres International in 2021.

Longtime Tyres International owner Marty Bezbatchenko controls the rest of ATNA’s shares. (Marty and his son, Mike, run the company.)

MTPL wanted a more extensive presence in North America as part of a bigger initiative to broaden its reach.

With the 2021 acquisition, Tyres International became the exclusive distributor of Ascenso-brand ag, OTR and material handling tires in the United States.

At the time of the deal, Tyres International had two distribution centers — one in Stow, Ohio, and another near Reno, Nev.

e latter facility was expanded to 70,000 square feet in 2022.

Six months ago, Tyres International opened a third distribution center — a 75,000-square-foot facility in Dublin, Ga., which is near the Port of Savannah.

“We needed it because we had maxed out in warehouse capacity,” says Mahansaria.

“When we looked at our ability to service customers, we also felt we needed to strengthen our presence in the Southeast.

“One of the reasons we have signi cantly expanded our distribution in the U.S. is our ability to o er fast turnarounds. We follow a build-to-stock model” that’s enabled by signi cant warehousing capabilities in India.

MTPL’s factory — whose start-up represented a $100 million investment — is located in Gujarat, India.

It has the capacity to produce one million

Marty Bezbatchenko says the pace of Ascenso Tires North America’s product rollouts “has been very quick. We’re working with customers on new sizes and tread patterns, while at the same time keeping quality levels high.” (Pictured, parent company Mahansaria Tyres Private Ltd.’s plant, which is located in Gujarat, India.)

tires per year and recently completed its rst expansion phase.

“We’ve added capacity (at the plant) quarter by quarter,” says Mahansaria. “And it’s certainly our plan to enhance our production capacity over the coming years, given the extremely positive response we’ve received for our products.”

MTPL, through its ATNA subsidiary, “has built out a full line of Ascenso-brand bias and radial ag tires,” as well as industrial and construction tires, according to Mahansaria.

“We are continuously expanding our product range. We bring to market every month between 15 and 20 new SKUs. In a short period of time — less than two-anda-half years — we have developed a product portfolio of 500 SKUs.”

Bezbatchenko says the pace of ATNA’s product rollouts “has been very quick. We’re working with customers on new sizes and tread patterns, while at the same time, keeping quality levels high.”

ATNA will widen its product o ering in 2023. “We hope to bring to market at least 200 to 250 new SKUs a year — not just mainline tires, but all the niches required by the U.S. market,” including a new line of tires for forestry industry applications, notes Mahansaria.

Pursuing original equipment tments also will be a priority.

“Our rst focus was getting established

in the replacement market with established distribution,” says Mahansaria. “Now that we’ve had success, we’re making a signi cant push with original equipment manufacturers, both in the U.S. and around the world.”

ATNA also is investing in its sales force. e company added “several experienced and well-respected team members” during 2022, which “has allowed us to spend more time with customers and develop deeper relationships with them,” notes Bezbatchenko.

“And we’ll be looking at bringing on more personnel. We have some holes we want to ll and want to get more boots on the ground.

“I also think in 2023 that we’ll be more visible at trade shows and working with our dealers at local shows. We’re also putting in new so ware that will allow customers to order online and see their orders.”

Regarding additional warehouses, “we are considering expansion, keeping in mind long-term demand trends.”

“I think if you want to be a real player in this market and a trusted partner to customers, you have to raise the bar continuously,” says Mahansaria.

“You have to be able to support your customers with local inventory and sales support.

“ at’s the reason we partnered with Marty and Tyres International and it has really played out the way we anticipated.”

Photo: MTPL

Industry News

Bites

Kumho is OE on VW

Kumho Tire USA Inc. will supply original equipment tires in four fitments for the new Volkswagen ID.4 electric SUV. Tire sizes include 235/55R19, 255/50R19, 235/50R20 and 255/45R20.

Discount to get new HQ

Discount Tire is planning to build its new corporate headquarters in Phoenix, Ariz. The dealership recently acquired 35 acres in the city via an Arizona State Land Department auction. Discount Tire has called Arizona home since 1970.

Feds look at converters

A federal bill intended to help police thwart catalytic converter theft has been introduced. The Preventing Auto Recycling Theft (PART) Act, written by Senators Amy Klobuchar (D-Minn.) and Ron Wyden (D-Ore.), would create a national framework to mark catalytic converters and establish federal criminal penalties for converter theft.

Tire Discounters nears 200

Tire Discounters Inc. is closing in on 200 retail locations. The dealership has outlets throughout its native Ohio, plus Kentucky, Indiana, Tennessee, Georgia, Alabama, North Carolina and Virginia. And it’s now focusing on the Carolinas and Florida as markets for both acquisitions and greenfield expansion. The company recently acquired Skip Cottrell’s Tire, a dealership in West Somerset, Ky.

Dobbs opens 43rd store

Dobbs Tire & Auto Centers has opened its first store in the Columbia, Mo. market. The 12,000 square-foot store has 12 service bays for tire work and automotive repairs. Dobbs Tire has more than 600 associates in MIssouri and Illinois.

Belle expands in Chicago

Allen Park, Mich.-based Belle Tire Distributors Ltd. has opened a location in Bloomington, Ill. The store is the dealership’s 14th outlet in the greater Chicago, Ill., market.

GRI tires are DOT-approved

Global Rubber Industries Pvt. Ltd. is reporting that its on-highway tires have received U.S. Department of Transportation certification.

Nokian to expand U.S. plant, add distribution center

Nokian Tyres plc is investing $174 million to expand capacity at its plant in Dayton, Tenn., and build a 60,000-square-foot distribution center there.

The investment will allow Nokian to add light truck tires to the plant’s production mix later this year.

The new distribution center will join Nokian’s current network of nine warehouses throughout the United States and Canada “and will serve the growing volume of (Nokian) customers in the Sun Belt,” according to company officials.

Nokian plans to bring the new distribution center online by mid-2024.

Nokian’s Dayton plant set production records in 2022. The company has begun adding infrastructure inside the factory to meet its goal of producing up to four million tires per year — a milestone it plans to reach in 2024.

Hankook names Rob Williams president

Rob Williams has been named president of Hankook Tire America Corp. Williams will oversee Hankook’s United States and Canada business, while leading four departments and directing teams at the company’s plant in Clarksville, Tenn.

He most recently served as Hankook Tire America’s senior vice president of commercial and consumer sales, a role he held since June 2022.

Williams brings “more than three decades of tire industry experience and has a proven track record of success in sales and operations executive leadership positions, strategic planning and optimizing profitability,” say Hankook officials.

In related news, JJ Park has been promoted to vice president of Hankook’s U.S. passenger car and light truck sales, overseeing sales innovation, corporate sales and the company’s north, south and west regional passenger and light truck tire sales team.

Park, who joined Hankook in 2004, most recently served as vice president of marketing and U.S. sales innovation director for Hankook Tire America Corp.

Ted Choi also has been promoted to vice president of North American marketing strategy and will be responsible for Hankook’s marketing strategy, TBR marketing, technical services, Canada sales and supply chain and logistic operations.

Joe Park has been promoted to vice president of corporate management, overseeing finance, accounting, tax and internal audit function for Hankook Tire America Corp.

“We are committed to the United States and Canada markets and Rob, JJ and Ted have all contributed greatly to our growth in the region,” says Sooil Lee, CEO, Hankook Tire & Technology.

Nokian plans to manufacture light truck tires at its Dayton, Tenn., plant this year.

Photo: Nokian Tyres

Rob Williams has been named president of Hankook Tire America Corp. He will oversee Hankook’s business in the U.S. and Canada.

Photo: Hankook Tire America Corp.

WHEREVER YOU ARE, BKT IS WITH YOU

No matter how challenging your needs, BKT is with you offering an extensive product portfolio for every field such as agriculture, OTR and industrial applications. BKT provides concrete, reliable and high-quality solutions to your requests and working needs. Wherever you are, BKT is with you.

Bites

SRNA promotes Montasser

Sumitomo Rubber North America Inc. (SRNA) has promoted Rob Montasser to vice president of replacement sales. Montasser joined SRNA in 2016 as director of sales for Dunlop motorcycle.

Yokohama promotes Niknam

Yokohama Tire Corp. has promoted Fardad Niknam to vice president of original equipment sales. Niknam will oversee Yokohama’s original equipment tire sales in the U.S. He joined the company in 2014.

Touchette taps Mougios

Groupe Touchette Inc. has named former Michelin Canada executive Tony Mougios as its vice president of strategic affairs and growth. A 30-year tire industry veteran, Mougios previously served as Michelin Canada’s director.

Trelleborg deal on the way

Yokohama Rubber Co. Ltd.’s acquisition of Trelleborg Wheel Systems’ outstanding shares will be completed during the first half of 2023. The deal, which was supposed to have closed during the second half of 2022, was announced last March.

ZC Rubber eyes off-highway

Zhongce Rubber Group Co. Ltd. (ZC Rubber) wants to be one of the three largest players in the off-highway tire business. In 2022, Zhognce enjoyed a record year in its OTR tire business. The company offers more than 2,000 off-highway tire SKUs.

Prinx unveils Fortune site

Prinx Chengshan Tire North America Inc. has launched a new website, www.fortunetireusa.com, that highlights its Fortune brand and products “and showcases Fortune Tires’ commitment to quality and safety,” according to Prinx officials.

TBC updates site

TBC Corp. has unveiled a new website that offers streamlined navigation, improved user functionality, a comprehensive view of TBC and its portfolio and more.

Pirelli gains EV fitment

BMW has picked the Pirelli P Zero Elect to be original equipment on the i4 M50, a fully electric, high performance car.

Sun Auto Tire acquires Tire Outlet chain in Florida

Sun Auto Tire & Service Inc. has acquired Jacksonville, Fla.based Tire Outlet, an independent tire dealership with 14 outlets throughout northern Florida.

The deal gives Sun Auto Tire & Service more than 380 locations throughout 17 states.

“Team Tire Outlet is excited to become a valued member of the Sun Auto Tire & Service family and we are looking forward to continuing our growth and creating opportunities for the future,” said Tire Outlet Marketing Director Rob Duckworth.

Tire Outlet has 14 locations throughout northern Florida.

Tucson, Ariz.-based Sun Auto Tire & Service acquired five other dealerships during 2022. They include Toscalito Tire & Automotive, TGK Automotive Specialists, Superior Tire, Good Neighbor Tire & Auto Service and Coopers Auto Repair Specialists.

Tire Outlet was the 77th largest independent tire dealership in the United States, according to the 2022 MTD 100.

McCarthy Tire Service picks up Truck Fleet Repair

McCarthy Tire Service Co. Inc., which is based in Wilkes-Barre, Pa., has acquired Truck Fleet Repair, a single-location commercial fleet maintenance and repair provider in Norfolk, Va.

The acquisition “enables us to extend comprehensive mechanical services to our current customers, while providing over 200 Truck Fleet Repair customers with comprehensive tire solutions, from full tire processing management to retreading,” says John McCarthy Jr., president of McCarthy Tire Service.

In business since 1980, Truck Fleet Repair was owned by Nancy Millstein. Terms of the deal were not disclosed.

Leeds West promotes Wessels to CEO

Derek Wessels is the new chief operating officer and president of Leeds West Groups’ (LWG) automotive business. Judd Shader, the company’s founder and CEO, has become its executive chairman.

Wessels will run the day-to-day business and operations of LWG, which includes 123 automotive retail locations in 18 states. The company says Wessels has “worked closely with Shader over the last three years.”

Wessels has more than 20 years of automotive retail management experience, including as a senior management leader for the Firestone Complete Auto Care business.

In his new role, Shader will focus on the growth and expansion of LWG from a global perspective across all of its investment platforms.

Photo: Sun Auto Tire & Service Inc

Derek Wessels will run the day-to-day business and operations of Leeds West Groups.

Photo: Leeds West Groups

THE NEW GALAXY AT GRIP STEEL RADIAL THE SKID STEER TIRE THE MARKET ASKED FOR.

Introducing the Galaxy AT Grip Steel, the new skid steer radial designed from the ground up with OTR tire dealers and skid steer operators. This is exactly what the industry asked for, from the long-lasting, high-traction block tread to the sturdy, reinforced sidewalls. The AT Grip Steel minimizes bucking and bouncing, and is priced aggressively to make this the best time for customers to switch to radials.

Ask your YOHTA REP about the new Galaxy AT Grip Steel skid steer radial, visit yokohama-oht.com or call us at (800) 343-3276. •

The

is a hybrid tire

vehicles in 70+ sizes. With dual sidewall design options and a 55K Mileage Warranty, this tire has the durability drivers expect. Our most popular PLT sizes are currently available, with a 12-Ply rating in specific sizes. For factory direct and warehouse programs call 305.621.5101. For dealer inquiries visit Landsailtires.com. @landsailtires *Specific sizes only

THE LANDSAIL STORMBLAZER IS SPECIFICALLY DESIGNED FOR THESE POPULAR OE FITMENTS:

Subaru Outback

Toyota RAV4

Subaru Crosstrek

Honda CR-V

Jeep Renegade Trailhawk

Mazda CX-5

Nissan Rogue

Ford Escape

Jeep Cherokee

Stormblazer Crossover

created for popular CUV/SUV

John Healy By

Are sellout trends starting to moderate?

CONSUMER TIRE DEMAND ‘LOST STEAM’ NEAR END OF 2022

Our recent conversations with tire dealers leave us with the view that retail sellout trends have lost a bit of steam year-over-year. Sellout trends moved lower in December 2022 versus December 2021 levels.

We note this follows two months of positive retail sellout, with November 2022 seeing the largest year-over-year gain of the last 12 months.

The net number of respondents indicating they experienced positive consumer tire demand year-over-year fell by 25%.

By contrast, November 2022’s reading was a high-water mark for the year.

While trends in tire retailing are always finicky, multiple dealers said that inventory was a bit harder to come by in December than in previous months.

Respondents to our latest survey indicated that certain tire sizes had either been discontinued or were not as readily available during the month. Some also told us that warehouses were running low on certain brands.

In addition, respondents said they were forced to absorb additional shipping fees, which — combined with already-elevated tire prices — caused retail sellout to turn negative as 2022 ended.

Given further pricing actions that were implemented at the start of 2023 by several tire manufacturers, our dealer contacts predict that the new year may present a difficult selling environment — especially without some winter weather-driven buying.

Overall, we continue to hold the perspective that volumes in the long run will become more closely aligned with GDP growth.

We will closely watch economic conditions as further Federal Reserve interest rate activity could spur further GDP declines.

TIER-TWO REMAINS POPULAR

In response to our question about product mix, respondents indicated that demand for tier-two tires and demand for tier-three tires at their dealerships were roughly equal in December 2022.

This appears to be consistent with the long-term trend we have seen, as tier-two tires were the most in-demand among our dealer contacts’ customers during nine of the 12 months in 2022.

Our contacts tell us that demand for tier-one tires decreased during December.

Given rising tire prices — as well as the increased price of all consumer goods and the influx of lower-tier tires during the back half of 2022 — the drop does not come as a surprise.

We also note that dealers have indicated that the pricing spread between tier-one and tier-two brands has become so large as the result of recent price increases, they are continuing to see a trade-down.

In our view, this represents the current realities of the marketplace, where some tire prices have simply become too high for many consumers to justify.

Snapshot of Dealers’ PLT Tire Volumes (Year-Over-Year Change)

We maintain the position that consumer preference for tires changes based on the volatile economic situation.

RAW MATERIAL UPDATE

Looking at raw material costs, the “basket” of raw materials needed to build a basic replacement vehicle tire increased by just under 7% during the fourth quarter on a year-over-year basis, following a 25.2% jump during the third quarter.

We note that raw material prices continue to moderate as our raw material index in November fell 2.1% sequentially from October 2022 levels. (October fell 2% sequentially from September 2022.)

Based on data from November 2022, this would equate to a 6.5% decline in raw material costs from the third quarter of 2022 to the fourth quarter.

Holding current spot prices flat would equate to a 6.9% year-over-year increase in the cost to build a tire during the fourth quarter of 2022.

When examining specific raw materials, we note that the price of carbon black has increased for 23 months in a row — with year-over-year prices up 32.2% during the fourth quarter.

In assessing crude oil prices, we note some price moderation on this front, as prices have moved lower from their spring 2022 peak, driven by Russia’s invasion of Ukraine.

Oil prices grew an average of 9.7% during the fourth quarter, though we once again highlight sequential declines as oil prices fell by an average of 8% from the previous quarter.

Moving to natural rubber prices, our natural rubber index fell 20.6% on a yearover-year basis during the fourth quarter. Synthetic rubber costs grew by an average of just 2.6% during the quarter. ■

John Healy is a managing director and research analyst with Northcoast Research Holdings LLC, based in Cleveland. Healy covers a variety of subsectors of the automotive industry.

Take Flight Thunderer Mach I Plus

TAKE YOUR DRIVING EXPERIENCE TO THE NEXT LEVEL WITH THE ALL-NEW coming May 2023

Ultra-high performance tires

Constant evolution

By

Joy Kopcha

Long gone are the days where performance tires — and performance-minded consumers — are only tuned into speed and steady handling.

Original equipment (OE) vehicle manufacturers are demanding more out of the high performance (HP) and ultra-high performance (UHP) tires they out t on their vehicles and those widening demands are trickling down to the replacement market.

e result is a diverse assortment of performance-minded products. ere are summer performance tires, all-season performance tires and all-weather performance tires. And as the car parc has evolved, all of these tires have to t a wider assortment of vehicles, too. We turned to tire manufacturers to ask what’s happening at the OE level today and what’s coming down the pike tomorrow. Tiremakers also provided tips to help dealers increase their share of the HP and UHP tire markets.

MTD: What are original equipment manufacturers (OEMs) asking for in the next generation of performance tires?

Brandon Stotsenburg, vice president, automotive division, American Kenda Rubber Co. Ltd.: OEMs’ volumes are trending toward CUV/small SUV and electric vehicle (EV) applications for performance tires as vehicles in North America continue to shi away from traditional performance sedans, minivans and sports cars. Tire performance needs will vary by speci c application, but key issues will be for lower weights while enhancing carcass construction for higher torques.

ere will also be an ongoing need for maintaining speci c criteria around dry/wet handling

and dry/wet braking, while meeting additional targets for both noise and rolling resistance. One of the additional trends which will continue is the push for higher rim diameters with increased volumes going to 19, 20 and 21 inches, depending on the platform, with some of the CUV/SUV vehicles requiring 22-inch (tires).

Ian McKinney, senior product manager, Bridgestone Americas Inc.: OEMs are continuing to ask for improved levels of wet and dry traction, steering precision and stopping distance from performance tires. Also as automakers continue to produce more luxury cars and sports sedans tted with performance tires, there has been a desire for improved levels of ride comfort and noise.

Current trends like vehicle electri cation and overall sustainability require that performance improvements don’t trade o tire rolling resistance capability.

In addition, OEMs are continuing to increase the speed rating requirements of their tments. Performance tires that top out at a V speed rating are becoming less common, while a W or higher speed rating is now the norm.

Nate Dodds, performance tire product manager, Continental Tire the Americas LLC: While performance requirements vary from OEM to OEM, manufacturers are o en asking for increased grip in both dry and wet, as well as improved e ciency in terms of tire rolling resistance.

David Poling, director of tire development and product marketing, Giti Tire (USA) Ltd.: When we talk about performance tires, we need to properly clarify exactly what we are talking about. Performance tires can be generally broken down into HP and UHP. We would de ne HP being H- and V- speed rated and UHP being W-, Y- and Z-rated.

Beyond that initial separation, we have both summer and all-season products, with each of the products existing on a continuum. Summer tires can be generally divided into regular summer performance and

PERFORMANCE TIRES AREN’T JUST FOCUSED ON SPEED ANYMORE. ROLLING RESISTANCE, NOISE AND OTHER FEATURES MATTER, TOO

Brandon Stotsenburg says 18-inch tires are the current leaders in Kenda’s UHP tire lineup, including the Vezda UHP A/S, an all-season tire offered in both W and Y speed ratings.

Photo: American Kenda Rubber Co. Ltd.

This Dodge Challenger rides on Atturo’s most popular ultrahigh performance tire size — 275/40R20.

Photo: Atturo Tire Corp.

Ultra-high performance tires

extreme summer performance. Regular summer tires are focused on good dry and wet grip with a UTQG rating 300 or above. These tires are also generally the OE type of tires.

Extreme performance tires are focused on maximum dry grip with UTQG ratings 200 and below. These tires are often used on the track, as well. All-season tires come in touring variants with up to W speed ratings, as well as UHP all-season versions that extend all the way to Y speed ratings with a focus on maximum wet and dry performance. Many of the OE fitments for North America are all-season in H-, V- and W-speed ratings, with the trend moving up along with the higher rim diameter trends.

What are OEMs looking for in a HP or UHP tire? With such a wide array of options, the answer lies in the essence of what the vehicle is and what the consumer expects the car to deliver. Many standard sedans and CUVs will come with both HP and UHP tires and options for all-season or summer, but generally their focus will be comfort and rolling resistance, with

some level of handling performance that is commensurate with the expectations of the target owners. Then there are the true high-performance cars, which will generally come with UHP summer tires. The OE focus will be all about wet and dry handling performance because that is what their customers expect.

Chris Magana, vice president, OE consumer, Goodyear Tire & Rubber Co.: As OEMs shift from internal combustion engines to electrification, we are responding with performance tires that meet the demands of their vehicles. The OEMs are designing vehicles with larger rim diameters and higher load carrying capabilities and we match their designs with performance tires to deliver the driving experience the consumer wants. Our technology team is also continuing to innovate the features — rolling resistance, SoundComfort technology and sealants — of our performance tires to meet the OEM designs.

Moonki Cho, product manager, Hankook Tire America Corp.: High-speed response and braking performance were previously the main requirements for performance tires. Now as vehicle technology continues to advance, there are more demands for high performance tires.

High-speed reliability, a quiet ride, and increased mileage are all qualities that OEMs desire for the next generation of performance tires. As such, tire manufacturers will continue inventing tires that best meet the needs of OEM vehicles.

Mary Ma, vice president of operations,

“The days that performance tires were mostly fitted on sportscars are over,” says Goodyear’s

And because of that, she says Goodyear’s Eagle lineup has an assortment of products to meet varying needs.

Keter Tire USA Inc.: They want products that work in sync with their vehicles — better wet traction, smoother ride, quietness and high-speed cornering, to name a few. OEM engineers are now so in tune with tire technology, they actually build tire performance into their vehicles.

Mark Lin, OE account manager, Maxxis International – Canada: Tire design is a very complex process. One major reason for that complexity is the fact that tires need to perform in a wide range of conditions. The OEMs provide specific engineering targets for tire makers, such as Maxxis. Some targets may be more difficult than others to achieve, but it’s up to us to find ways to ensure the tire fits within the requested performance parameters.

Designing a high performance tire is no different, except that the targets may be skewed more toward dry performance at the expense of other criteria. The OEMs may also specify a summer tire compound instead of an all-season to further improve dry performance.

However, due to increasingly stringent fuel economy requirements, noise, vibration,

David Poling of Giti Tire (USA) Ltd. says original equipment manufacturers sort through the many performance options to find tires that answer “the essence of what the vehicle is and what the consumer expects the car to deliver.”

Photo: Giti Tire (USA) Ltd.

Renee Radabaugh.

Photo: Goodyear Tire & Rubber Co.

In 2022, Hankook updated its UHP tire lineup with the Ventus S1 AS. Hankook’s Moonki Cho says 215/55R17 is the most in-demand performance size.

Photo: Hankook Tire America Corp.

Ian McKinney says Bridgestone’s new Firestone Firehawk AS V2 tire provides the sporty drive many consumers are looking for when shopping for high performance and ultra-high performance tires.

Photo: Bridgestone Americas Inc.

Continental’s most popular tire size by volume is the 225/40R18. Among its most popular fitments are the Audi A3, VW GTI and Lexus IS.

Photo: Continental Tire the Americas LLC

Ultra-high performance tires

Mary Ma of Keter Tire says, “OEM engineers are now so in tune with tire technology they actually build tire performance into their vehicles.”

harshness and rolling resistance continue to be important criteria.

If tires are to be tted on a battery electric vehicle, one of the rst concerns is the tire’s ability to support a signi cantly higher vehicle load compared to a gas-powered vehicle. is is why when it’s time for the original tires to be replaced, the same OEM-speci ed tire or a tire rated for EV use should always be selected as a replacement.

Ed Gliss, OE/UHP product category manager, Michelin North America Inc.: Present and next-generation performance vehicles now have various propulsion method options — the traditional internal combustion engine, hybrid powertrains and of course, pure electric.

Regardless of those methods, OEMs are not asking for performance tires that are dramatically di erent from years past.

Rolling resistance — or the eciency of the tire — is now a metric that comes up more often during the development process. However, traditional metrics like peak grip, lateral rmness, steering precision and wet traction remain relevant.

Jason Yard, marketing manager, Nexen Tire America Inc.: Each OEM is di erent, but all OEMs are looking for well-rounded tire performance. Reduced rolling resistance and lower NVH levels continue to be high on the priority list,

Michelin’s Ed Gliss says one way for a tire dealer to increase performance tire sales is “having key sizes in stock.”

but not at the expense of other performance (attributes), like stopping distance or snow traction.

For performance models, we see OEMs skewing the balance of performance towards handling and higher wet and dry grip levels, as you would expect. ere is not really a next generation of performance tires. Rather there is a continuous evolution, with the goal of expanding the total performance envelope.

Oosthuizen Andre, head of consumer and trade marketing, Pirelli Tire North America Inc.: Performance tires are changing as the modern de nition of performance is also changing. OEMs are still searching, in some cases, for traditional max performance tires — maximum mechanical grip in order to optimize vehicle speed and track performance, with increasingly larger and larger wheels sizes.

Jason

However more and more we are seeing performance tire requests to include low rolling resistance, low noise levels and a high degree of safety — wet and snow — performance. It is no longer good enough, in most cases, for tires to simply be fast. ey must also balance the relevant attributes of that performance vehicle, which are increasingly becoming electri ed.

Jared Lynch, director of U.S. sales, Sailun Tire Americas: e performance tire in the last decade has made a lot of progress in traction and handling. So how do we evolve from there? (OEMs) want tires to give them that same level of traction (and) that same level of handling, but to increase longevity. Can

“More and more we are seeing performance tire requests to include low rolling resistance, low noise levels, and a high degree of safety (wet and snow) performance” from original equipment manufacturers, says Oosthuizen Andre from Pirelli.

you double that tread life? at’s really where performance tires are starting to go.

Five or six years ago, you saw a lot of UHP all-season (tires) that emulated the performance of a summer tire — with tread life of 30,000 to 35,000 miles. Now fast forward ve more years and that’s not good enough anymore. Can we push it closer to 50,000 miles? When we get to 50,000 miles, I’m sure they’ll want 70,000 or 80,000 (miles).

David Pulla, national sales manager in Canada, Sailun: We’ve seen the touring tire become V-rated where it’s entering that high performance category. With that said, and with increasing the speed rating, (they) want to maintain longevity where that (tire) is lasting the equivilant, if not longer, than a touring tire.

Nick Gutierrez, sales director, Sentury Tire USA: With increased fuel prices, consumers want e ciency and this means rolling resistance matters. e highest standards of quality and durability are a given, but I think OEMs are also expecting great support for the consumer, like easily accessible information regarding where to purchase replacement tires and what the warranties are.

“It’s very important, now more than ever, that you have a very strong value-tier brand,” says Jared Lynch, director of U.S. sales, Sailun Tire Americas. “You can save your customers a lot of money and that resonates and means a lot to so many customers.”

Photo: Michelin North America Inc.

Yard of Nexen says dealers need to remember “there is not one high performance tire for every application.”

Photo: Nexen Tire America Inc.

Photo: Pirelli Tire North America Inc.

Photo: Sailun Tire Americas

Photo: Keter Tire USA Inc.

Ultra-high performance tires

Kyle Sanders, category management director, TBC Brands LLC: With the evolution of vehicle performance over the last decade, many OEMs are requiring steering precision, maximum handling, responsiveness and braking, with higher speed ratings.

Andrew Hoit, executive vice president, brand division, Tireco Inc.: e evolution in vehicle categories and performance is expanding OE specs. CUV and EV market share continues to grow year-over-year and we also know that CUV and EV specs are di erent compared to the traditional passenger vehicles in the same class. One noticeable di erence is that CUVs and EVs weigh more, so the vehicle’s weight can put more stress on the tires.

rough the evolution of growth in other non-traditional passenger vehicles, there is a growing want for a passenger tire with the ability to carry higher load (and) provide higher fuel e ciency, without sacri cing ride comfort.

Joaquin Gonzalez Jr., president, Tire Group International Inc. (TGI): e horsepower wars are back. Most entry-level consumer cars today have the horsepower world-class supercars had 20 years ago. With increased power comes the desire for better handling and a more sporty response. Meanwhile, technology, increasing size and mandated safety features have all contributed to increased curb weight. Putting all that power to the ground, especially with EVs’ instant torque — while maintaining desirable handling characteristics — is what OEMs demand of modern tires.

As designers, manufacturers and distributors of tires, our job is to deliver tires that can tick all those boxes. Today’s tire must keep up with today’s high-tech cars to deliver more grip, traction, cornering and dry braking performance than ever before.

Chris Tolbert, director of sales, Trimax Tire Corp.: Better overall performance, with less noise and better braking. With more electric vehicles on the road, performance tires must be XL-rated to handle additional weight requirements.

Richard Li, global marketing director, Zhongce Rubber Group. Co. Ltd. (ZC Rubber): OEMs are clearly concentrating more on the rolling resistance of the tire for electric vehicles, while yet providing outstanding handling and durability. Our attention is also on low rolling resistance and good handling performance for tires of current internal combustion engines since increasingly strict Chinese environmental restrictions are pushing the automotive sector to develop cars with reduced fuel consumption and lower emissions. erefore, our current development priorities for the performance tire include reduced rolling resistance and high handling. At the same time, we are still paying special attention to the tire’s price and quietness.

Kyle Sanders of TBC says dealers need to break down their customers’ needs to “determine the best tire to optimize and meet these requirements.”

understanding the speci c performance and value needs for each consumer better than alternate channels. ere are o en many performance options available which will meet the basic load index and speed rating required. You want to match the individual needs to assure the best performance with access to di erent products and brands available. Take the time to communicate and discuss what (the customer) liked and lacked from previous tires on the vehicle. For 2023, a larger percentage of performance customers are experiencing nancial stress due to outside factors, but (they) will not want to sacri ce performance and safety. Be ready to discuss options to help them get the best product to t their needs.

Michael Mathis, president, Atturo Tire Corp.: Our advice to dealers who want to grow their UHP business is to take two steps. First, actively engage in your local enthusiast community. at may include visits and sponsorship of a drag strip, attending car shows or inviting a car club to hold a meet in your parking lot. Next, make sure your sales team is trained to look for opportunities to suggest a UHP tire.

When the owner of a vehicle like a Charger or Challenger comes into the shop for tires, don’t just default to o ering the same allseason tire the car came with as OE. Talk to the customer about what they like about their car and uncover that opportunity to suggest a UHP upgrade. If done right, you send a customer out the door with a tire that better enhances the performance and enjoyment of their vehicle.

“Today’s high performance and ultrahigh performance tires are no longer reserved for performance enthusiasts,” says Tsuyoshi Johnson from SRNA. “Anyone looking for improved overall safety behind the wheel can benefi t from these tires’ enhanced dry and wet capabilities.”

MTD: What advice do you have for tire dealers who want to sell more HP and UHP tires in 2023?

Stotsenburg (American Kenda): Dealers need to promote their expertise in

McKinney (Bridgestone): Consumers who purchase high performance and ultra-high performance tires are looking to achieve a more spirited, sporty driving experience with minimal tradeo s. We are constantly designing new high performance and ultra-high performance tires featuring the latest technology that have the features these buyers are looking

Nick Gutierrez says 19- and 20-inch sizes are Sentury’s best sellers.

Photo: Sentury Tire USA

Photo: Sumitomo Rubber North America Inc.

Photo: TBC Brands LLC

Ultra-high performance tires

for — like sporty handling, responsive cornering and improved lap time — without compromising performance. The new Firestone Firehawk AS V2 is a prime example of this.

Additionally, we recently expanded the Potenza line of ultra-high performance tires with the Potenza RE-71RS. is ultra-high performance tire is designed with track day, autocross and endurance race drivers in mind to deliver improved corner grip and faster lap times without sacri cing an extended wear life.

As the high performance and ultra-high performance segment evolves, tire dealers who want to sell more of these in 2023 should continue to focus on understanding each customer’s individual wants and needs in order to match them to the best option based on their key features. While speed will always be a top consideration, buyers are expecting much more out of their high performance and ultra-high performance tires today than ever before in terms of ride comfort, safety, and performance within speci c climates and road conditions.

Dodds (Continental): My advice to dealers in 2023 would be to continue to look for potential HP and UHP tire customers in the ever-growing luxury sport SUV segment. As well, focus on customers of EVs looking to replace their current tire with a more performance-focused option.

Poling (Giti): e best advice for dealers who want to sell more HP and UHP tires in 2023 is to understand the needs of the

particular vehicle and the desires of the customers, so those two things can be matched up with the appropriate tire. Sometimes the customer wants to shi the focus from the original OE tire characteristics. is could come in the form of improved treadwear or maybe the car has summer tires on it and they want to drive in colder conditions, which will require an all-season tire. And sometimes they want to maximize the performance of the car beyond the original OE tire, which is where an extreme summer tire, like our GT Radial SX2 RS, would be the perfect t since it has been proven at the track in Formula Dri competition. Customers looking for these types of tires are high tire-IQ buyers, so know your product o erings inside and out.

Renee Radabaugh, vice president, channels and categories, Goodyear: e performance category continuously provides opportunities for enhanced dealer pro tability. To capitalize on these performance category opportunities, a combination of a balanced core assortment that is supported by a responsive supply chain for the more exotic sizes is key to success.

As there are many sub-categories to the performance market, it’s key to understand the diverse consumer needs. Asking the right questions at the sales counter supports making the right recommendation.

Cho (Hankook): ere is a wide variety of vehicles that can be tted with HP and UHP tires, from smaller cars to CUVs, as well as regular and tuning models.

As a result, dealers should identify their customers’ vehicles and tire sizes to better recommend products that are designed speci cally for their vehicle.

In addition to the vehicle’s performance qualities, Toyo’s Kevin Arima says tire dealers need to consider the weather conditions a driver faces when making a performance tire recommendation, since there are summer, all-season and all-weather options.

Ma (Keter): Our dealers already know this, but they need to understand the customer and their needs. Also (emphasize) service, service, service. is creates a positive customer experience and that’s what brings them back.

Gliss (Michelin): Like any customer, you want to qualify them to understand what they are looking for. Dealers will want to make sure their sta is trained and prepared to explain the bene ts of a dedicated UHP summer tire compared to an UHP all-season tire and what the di erence is in performance. Having key sizes in stock always helps drive more sales.

Yard (Nexen): Most manufacturers have a good, better and best o ering, which allows dealers to choose two or three selections for their customers. ere is not one high performance tire for every application, so it’s important to note the features and bene ts between high mileage, all-around performance, extreme traction for the enthusiast and the value option for the price-conscious.

Andre (Pirelli): In order to sell more HP and UHP tires, our customers must understand the value they receive by choosing HP and UHP tires. Today’s UHP tires combine ride comfort with the best possible performance in wet and dry conditions. Whether in spirited driving or in a safety situation like a panic

Photo: Toyo Tire Corp.

Chris Tolbert of Trimax explains that “with more electric vehicles on the road, performance tires must be XL to handle the additional weight requirements.”

Photo: Trimax Tire Corp.

“High-performance tires are no longer a luxury priced out of range for the average consumer,” says Joaquin Gonzalez of Tire Group International.

Photo: Tire Group International Inc.

Ultra-high performance tires

brake, UHP tires will allow the vehicle to perform at its peak.

Pirelli’s tailor-made, OE marked tire will provide the best possible performance for a customer’s vehicle. When a customer knows that, they will be willing to pay a premium for the best performing tire to bring out the best performance from their vehicle.

Lynch (Sailun): Educate your counter sta so they know what questions to ask (and) can give the best tire for that particular driver. But what’s equally important is you want to have a strong product mix — not only in the top tier but in the value tier. You can save your customers a lot of money and that means a lot to so many consumers, especially when their tires might only be lasting 25,000 to 30,000 miles.

When you get down to the value tier, understand what value tier manufacturer you’re working (with.) ere are some incredible value-tier tire manufacturers like Sailun that do the R&D, do the research, spend years on these tires and then they bring them to customers at a fraction of the cost.

Gutierrez (Sentury): Our recommendation for tire salespeople would be (that) simple tech tools could make all the di erence. Utilize the tools tire brands like Sentury offer to your advantage. For example, Sentury brand websites have tools like tire nders, plus-sizing solutions, staggered tment nders and other helpful info. ese tools make research easy and less time-consuming.

Tsuyoshi Johnson, product manager for Falken PCR tires, Sumitomo Rubber North America Inc. (SRNA): It’s important that tire dealers have a strong understanding of every tire segment and what each one o ers to properly service their customers’ needs. Today’s high performance and UHP tires are no longer reserved for performance enthusiasts.

Anyone looking for improved overall safety behind the wheel can bene t from these tires’ enhanced dry and wet capabilities.

Plus, with longer tread life, improved ride quality and enhanced light snow performance, these products are now suitable for a wider range of consumers.

This is largely due to manufacturers’ emphasis on using more advanced technology to develop these tires versus your standard touring tires. For these reasons, we believe a UHP all-season tire like our Azenis FK460

Yokohama’s Drew Dayton says dealers need to qualify customers to know which performance requirements are most important to them. “Happy customers will come back for their next tire purchase and spread the word of their great buying experience.”

is a great option for drivers who expect a high-performing tire in all aspects.

Sanders (TBC): In today’s market, performance vehicles are driving the need for higher speed ratings and capabilities. Work with your customers, understand their needs and determine the best tire to optimize and meet these requirements.

Hoit (Tireco): Educating customers about the features and bene ts is a key component to selling more HP and UHP tires. I also believe there’s a big advantage to monitoring vehicle trends that are coming in for service. Dealers can use this data to make improvements to their inventory level with better product mix.

Gonzalez (TGI): High performance tires are no longer a luxury priced out of range for the average consumer. Dealers should have brands in their portfolios that provide consumers options to increase their fitments and speed ratings, while delivering value. More OEMs are abandoning traditional OE touring tires for a more robust and performance-driven option, with V or higher speed ratings.

When it comes time to replace the first set of tires on a new vehicle, consumers will look for options with similar, manufacturer-

recommended or even better speed rating and driving characteristics. Consumers look to tire dealers to provide those options. And if those options are absent at their preferred tire dealer, consumers will likely go elsewhere.

Kevin Arima, senior manager, consumer products and technical services, Toyo Tire U.S.A. Corp.: It’s always good to know your customer and understand how they plan to use their vehicle. Factors such as their performance needs, budget, how long they plan to keep their vehicle, etc., will help to recommend which HP/ UHP tire is best-suited for the customer.

For example, if you have a customer that wants to get new wheels while enhancing the performance of their ride, then a tire like our Proxes Sport A/S may be suitable.

Understanding the trends and what vehicles are owned in your area will ensure you have ample inventory for replacement HP/UHP sizes.

Tolbert (Trimax): Be proactive in communicating with your tire distributors and tire manufacturer sales representatives on updated information. ere are so many ever-changing tments, speed ratings, features and bene ts to make sure the tire exceeds customer expectations and prevents issues.

Drew Dayton, senior product planning manager for consumer tires, Yokohama Tire Corp.: Qualifying your customer’s performance requirements is key for determining what type of HP or UHP tires would be the best t. If they want a high-performance tire that can also be driven in inclement weather, an all-season tire such as our the Advan Sport A/S+ is the best.

Having expert knowledge on performance and performance tradeoffs will give the customer con dence in your recommendations.

Li (ZC Rubber): Chinese tires are getting better every year and ZC Rubber’s tires have consistently performed exceptionally well in reputable testing. 

ZC Rubber says it is focusing on low rolling resistance and good handling for modern internal combustion engine vehicle applications.

Photo: Zhongce Rubber Group Co. Ltd.

Photo: Yokohama Tire Corp.

Ultra-high performance tires

Stock ‘em to sell ‘em

SELLING UHP TIRES STARTS WITH HAVING THE RIGHT INVENTORY

Mike Manges By

Market share by speed rating

Brand rankings in the H- and V-rated categories

Replacement passenger tire shipments in the United States totaled 216.1 million units in 2022. MTD estimates that the H-rated segment totaled 62 million units and the V-rated and above segment totaled 58.3 million units. Here’s a snapshot of brand market share in both categories.

H-RATED MARKET SHARE

(based on an estimated 62 million units)

V-RATED AND UP MARKET SHARE

(based on an estimated 58.3 million units)

Stocking the right tires and sizes “is a moving target,” says Craig Dobrin, vice president of operations for Atlanta, Ga.based Butler Tires and Wheels. “And it changes every year. When you don’t have it in stock, you don’t make the sale.”

Ultra-high performance (UHP) vehicle owners are a different breed, according to Craig Dobrin, vice president of operations at Atlanta, Ga.-based Butler Tires and Wheels, which specializes in UHP tire and custom wheel sales.

“Their currency is time, rather than money.”

To sell a set of UHP tires to these time-pressed customers, you first need to have the tire in stock — or at least nearby, says Dobrin.

Asking the owner of a $200,000 car to park it at a store for three to four days while a salesman orders a new set of tires will demonstrate that “you clearly don’t have a specialty in this arena,” he asserts.

“When you’re dealing with a true UHP customer — when we’re talking with European sports car (owners) in the $200,000 or north vehicle market — these (clients) have wants,” he continues. “They don’t necessarily have needs.

“They’re driving that car because they want the absolute best luxury experience.

“They want the best possible product on their vehicle and they want the most qualified individual to work on it.

“And they want somebody who’s going to do the job right the first time” — as quickly as possible, says Dobrin.

Stocking the right tires and sizes “is a moving target. And it changes every year.

“It’s not just having the right size, either. Porsche has three or four different specs within the same size, the same category and the same tire.

“Within one tire, there might be 18 or 20 different versions of a tire!

“To predict what you’re going to need is challenging. Tires

perform very different functions on very different vehicles (that have) very different drivers and we have to make sure we’re accommodating all of that.”

“The UHP tire category has changed and has become much, much broader,” adds Dani Freeman, vice president of marketing for Butler Tires and Wheels. 

Photo: Butler Tires and Wheels

Tire Group International

TGI has big plans for U.S. market, Cosmo brand

COMPANY TO FOCUS ON GROWING DOMESTIC BUSINESS IN 2023

By

Mike Manges

Now in its 31st year, Tire Group International LLC (TGI) — which exports tires to more than 70 countries — has big plans for its rapidly growing business in the U.S.

“You either get bigger or you go away,” says Tony Gonzalez, founder and CEO of the Miami, Fla.-based company.

TGI’s focus this year will be growing its Cosmo brand, which offers more than 130 passenger, light truck and medium truck tire SKUs.

“We have about 80% market coverage and now it’s ‘Where can we develop further?’” says Joaquin Gonzalez Jr., TGI’s president and Tony’s brother.

TGI plans to add sizes to its Cosmo Mucho Macho high performance passenger tire line and will roll out a new product, Shogun R, which will be “a softer-compound tire for ultra-high performance in drift and autocross,” notes Tony.

“We will have an R/T tire named RockIt, as well. And we are expanding our Kat Energy lineup with about 15 new sizes.

“We’re rapidly expanding the line,” says Joaquin. “Before the end of the year, we’ll have close to 200 SKUs.”

In addition, TGI is expanding its Cosmo medium truck tire line “with two new patterns that will offer value and performance.”

They will come with a casing warranty, “as do all of our TBR tires.”

The company will continue to ship out of its three distribution centers — one in Miami; one in Tampa, Fla.; and another in Portland, Ore.

GLOBAL REACH

The Gonzalez brothers are third-generation tire dealers. Their grandfather, Antonio Gonzalez, and his brother, Felo Gonzalez, owned a prosperous tire dealership in their native Cuba before Fidel Castro

came to power. (See sidebar on page 35.)

“My father, Joaquin Gonzalez Sr., developed a wholesale tire business” after the Gonzalez family emigrated to the U.S., says Tony.

“At one point, he also had 13 retail stores in Miami,” which were phased out in the 1980s when Joaquin Sr. moved overseas to pursue other business opportunities.

Tony, who had grown up in the family business and had worked for some other tire wholesalers and exporters, formed a partnership with a family friend, Augustine Herran.

In 1992 — at the age of 22 — he started TGI “out of my townhouse.

“We started off as brokers,” says Tony. “Back then, the business was more deal-centric. There were a lot of close-outs.”

TGI established the Cosmo brand in 1995. “We needed something we could control and was our own,” says Tony. “We could give exclusive territories and didn’t have to depend on someone else.”

Tony and his partner had made contacts around the world. They soon contracted with a manufacturer in China to build Cosmo brand tires.

“We invested in some bias light truck and medium truck tire molds. We started with that.”

Next came the task of developing TGI’s network of customers.

“One of our philosophies has always been, ‘Let’s find small and mid-size guys and grow together,’” says Joaquin Jr., who also grew up in the business.

“Our focus is on growing Cosmo and investing in Cosmo and continuing the marketing of Cosmo to differentiate us in tier-three,” says Tony Gonzalez, CEO of Tire Group International LLC, seated, with Joaquin Gonzalez Jr. “And we’re having fun doing it.”

Photo: TGI

Tony remembers visiting a customer in Central America during TGI’s early days.

“I was made to wait to meet with the head guy there for an hour-and-a-half. I eventually met with him. We needed the business.

“But I said to myself, ‘This isn’t the way to go. I’m nobody to this guy. I need to find other small guys and medium-sized guys who need me as much as I need them.’”

Some of TGI’s customers “started with

CH AMPIONSHIP W INNING ENDUR ANCE R ACING AND AUTOCROS S S TREE T TIRES

nothing,” says Joaquin Jr. “We met our Cosmo dealer in Puerto Rico at a trade show nine years ago. He started by buying two pallets of tires from us. Today he buys between 12 and 14 containers a month.

“We gave him a line of credit. We gave him a product for his market. And we gave him a brand that nobody else in his area has.”

At one point, TGI was the biggest U.S.based exporter of tires to Latin America in terms of units, according to Tony.

At the height of its export business, the company shipped tires to “every single country” in Central and South America, plus all of the Caribbean.

“We had offices in the Dominican Republic,” says Tony. “We had offices in Argentina, Panama and Nicaragua. We had three warehouses in Columbia. We had trucks. We were running routes.”

Meanwhile, TGI branched into other parts of the world, including Africa and the Middle East — often using “in-country agents” who knew local markets and could help the company build a presence quickly.

“We’ve had offices in Africa,” says Joaquin

Jr. “In 2013, we acquired a company that gave us products we didn’t have,” including OTR tires for mining applications.

“So we went ahead and opened an office in Ghana. We even hired a sales agent in South Africa.”

“If you find someone who’s an expert in a particular area and you have the right products, you can succeed,” says Tony.

The company maintains a busy export business. It shipped to more than 70 countries in 2022.

“When you do business in so many countries, what happens is when you step back, you see opportunities within opportunities,” says Tony.

TGI also has been opportunistic when it comes to expanding its footprint in the U.S.

“One gentleman who had worked with us for a while” decided to relocate to Oregon. “He said, ‘I want to open a warehouse.’ We said, ‘Sure. No problem.’ We backed him financially.”

TGI’s Portland, Ore., distribution center opened in 2017.

The company’s Tampa distribution center, which serves local customers, opened in May 2020.

“We do about a 250-mile radius, where we distribute to retailers — twice a day and once on Saturday — using our own trucks,” says Tony.

TAKING STOCK

TGI accomplishes the above with a staff of 102 team members, according to Tony — many of whom have been with the company for decades.

“We’re very efficient and very automated,” he says. “We invest hundreds of thousands of dollars — if not close to a million dollars — a year in IT and infrastructure.

“Our warehouse management system is paperless — from order placement all the way through delivery.

“About 70% of our orders come through our web portal. Customers don’t need to call us anymore, so that frees up our sales team to open new business.”

Over time, TGI has become adept at working through the ebbs and flows of importing and exporting tires, according to Joaquin Jr. That includes navigating shipping issues that have plagued the tire industry over the last three years.

The dramatic spike in freight rates after COVID-19 struck “hit us hard,” says Joaquin Jr. “Forget what you were buying a tire for in Thailand, Vietnam or wherever. When we went from an average of $3,000” per container “and it ballooned up to $21,000 per container — that’s a huge difference!”

The rapid decline in freight rates during the second half of 2022 presented its own set of problems, says Joaquin Jr..

“The increase (in freight rates) took 20 months. The drop took six months. When the music stopped and it started to drop, it was double the pain because now you have inventory at a very high price — and not because you bought it wrong.

“You bought it at the right price because pricing at the factory hadn’t changed. But you paid $70 to bring it in and now it costs $18 a tire.

“There’s a glut of tires right now. I call it ‘inventory indigestion.’ Everybody is stuck with a lot of inventory.”

TGI is working to draw down its inventory levels and is helping customers — including tire retailers and smaller tire distributors — do the same.

“You have a lot of small guys who didn’t accumulate a lot of inventory on the way up and didn’t enjoy record profits,” says Tony. “But on the way down, they’re moving inventory a lot quicker.

“The guys with massive inventories can’t move that stock as quickly, so they have no choice. If the smaller guys are setting the bar, you have to bring your prices in line with the market. If not, they’re going to sell all the units.

“The bottom line is you have to take it on the chin, you have to adapt, you have to write down your inventory and you have to move on.”

“The relationships we have overseas are still very important to us,”

TGI ships out of three distribution centers. One is located in Miami, Fla., where the company is based. Another is located in Tampa, Fla., and TGI’s third distribution center is located in Portland, Ore.

Photo: TGI

“If you have three good choices, which one are you going to pick? The one that’s going to give you the most margin, the one that gives you exclusivity and the one that gives you the support,” says Joaquin Gonzalez Jr. “That’s where Cosmo comes in.”

Photo: TGI

says Joaquin Jr. But selling internationally “is tougher sledding” than developing domestic business right now.

“Macroeconomic issues are making it tough to sell into international markets at the moment,” he adds.

PRESSURE RELIEF

In the U.S., TGI has a “national sales” division. “Our core business there is factory direct sales to other wholesalers,” who in turn sell Cosmo brand tires within exclusive territories, says Tony.

Cosmo tires are sold in more than 35 U.S. states, he adds.

“We’re really focused on serving the independent tire dealer,” explains Joaquin Jr. “The size proliferation in the market today has multiplied at a rate that doesn’t allow retailers to stock all they need.”

Major tire manufacturers “also are under pressure from the tier-three (manufacturers), who continue to gain market share,” he continues.

“A lot of tire dealers out there are saying, ‘Why should I be tethered to only one brand?’

“At the end of the day, if you have three good choices, which one are you going to pick? The one that’s going to give you the most margin, the one that gives you exclusivity and the one that gives you the support.

“That’s where Cosmo comes in. It’s a brand we know we’ll have today, tomorrow and the day after.

“Our customers also are dealing with a U.S.-based company and people who have the patience to develop a mutually beneficial relationship.

“It’s so much more fun that just selling a price.”

“Not all customers who have that one store and have been in a neighborhood for x number of years and have a dedicated clientele are necessarily the right guys to buy from the bigger guys who say, ‘You have to be on a program. You have to buy so many units,’” says Tony.

“There are customers who want something that’s their own and can make that extra margin.

“Our biggest focus is on growing the Cosmo brand and continuing to do what we started a few years ago, when we said, ‘We’re really going to build the brand in the U.S. and we’re going to develop the breadth of line needed for the U.S. market,’” says Tony.

“Our focus is on growing Cosmo and investing in Cosmo and continuing the

marketing of Cosmo to differentiate us in tier-three. And we’re having fun doing it.

“We’re kind of an irreverent brand,”

adds Tony. “We don’t talk to our customers corporately. We talk to them casually. You don’t always see that in our industry.”

An American success story

The Gonzalez brothers are the latest in a long line of tire dealers

“Tires are in our blood,” says Tony Gonzalez, founder and CEO of Tire Group International LLC (TGI).

“Our family has been in the tire business since 1942,” when his grandfather, Antonio Gonzalez, and great-uncle, Felo Gonzalez, opened a tire store in a suburb of Havana, Cuba.

“During World War II, there was a scarcity of rubber, so their main business was reclaiming old tires from landfills, repairing them and selling them back into the market.”

The business grew and thrived. Then Fidel Castro took control of Cuba in 1959 and later nationalized all private businesses on the island.

“My grandfather lost a ton of money because he had just bought brand new retreading equipment from the U.S. and Castro confiscated it at the port.”

Tony and his younger brother Joaquin Gonzalez Jr.’s father, Joaquin Gonzalez Sr. emigrated to the U.S. in 1961. (The rest of the family followed a few years later.)

“When our dad came here from Cuba, he went to work for General Motors in their tire division in New York,” says Tony. “Then he went to work for Firestone, which gave him the opportunity to run a store” in Miami that was struggling.

“Our dad turned the store around in short order. Two years later, he opened his own store in Miami and from there it grew into a wholesale business that was primarily focused on exports. He eventually grew the business into 13 retail stores, on top of his wholesale business.”

Tony and Joaquin Jr. grew up in the Gonzalez family business.

“I was 10 years old and rolling tires around the warehouse,” says Tony. “By the time I turned 13, I was covering for store managers who were on vacation. I’d balance cash at the end of the day. I’d make deposits at the bank.

“We didn’t have a day off in the summer! Our dad made us work the old-school way. It was true indentured service!” he says with a laugh.

In the late-1980s, Joaquin Sr. sold his retail stores and moved to Venezuela to pursue new business opportunities. “Even when overseas, our dad had a wholesale tire business,” says Joaquin Jr.

He and Tony moved to South America with their family. Tony returned to the U.S. shortly thereafter and went to work for what then was Tire Kingdom’s wholesale division. He helped open the company’s export business.

Tony founded TGI in 1992. Joaquin, who is 11 years younger than Tony, returned to the U.S. when he was a freshman in high school.

“I started working in the warehouse,” recalls Joaquin Jr. , describing his progression through the company. “Next summer, I worked in payables. The next summer, I finally made it to sales.” (Joaquin Jr. currently oversees TGI’s sales operations. Tony directs purchasing and marketing for the company.)

Joaquin Jr. stepped away from the family business for a number of years to play college and professional football. (He enjoyed a stint with the Cleveland Browns from 2002 to 2004 and then a season with the Indianapolis Colts.)

“In the summer, between seasons, I’d come back to work at TGI.”

The tire industry remains a people business, according to the Gonzalez brothers — just like it was when their grandfather and great-uncle opened their first store more than 80 years ago.

“We maintain a personal touch,” says Tony. “Customers walk into our headquarters every day and walk by Joaquin’s office and my office. We’re right there — front and center. We know our customers and they know us.”

Point-of-sale systems

Madison Gehring By

Every day, there seems to be some new, innovative technology marketed to tire dealers. With these advancements, it can be hard for dealers to focus on the tools they already have and keep them updated.

“It can be easy for dealers to maintain ‘business as usual’ and not take advantage of newer, modern technologies and features that are being introduced by point-of-sale system providers,” says Ashley Hopkins, director of enterprise operations, ASA Automotive Systems Inc.

Hopkins says a dealer’s point-of-sale system should make tasks “simpler and faster” and dealers need to “find a system that helps solve their core business challenges.”

David Andreoli, president of Andreoli Software, agrees that it is easy for dealers to “choose point-of-sale systems that do not benefit their dealership’s main problems.

“We have seen some dealers choose a new system to handle a process they perform five times a week more effectively, but does a poor job of handling a process the dealer (encounters) 100 times a week,” he says.

Texting communication is a feature that has been popping up on enhanced tire dealership point-of-sale systems.

Jay Adams, president of MaddenCo, says it is important for dealers to understand best practices when it comes to texting customers.

“A user should understand texting limitations and have a feel for when a phone call or in-person meeting is required, so that there is no misunderstanding between the parties,” he explains.

John Fischer, vice president of sales and marketing at Kerridge Commercial Systems, says a good way to build trust with customers is to not have the first communication be a quote on what a service or product will cost.

Representatives from point-of-sale system providers agree that systems also will have to keep integrating and connecting

When ‘business as usual’ isn’t good enough UPGRADE YOUR POINT-OF-SALE SYSTEM TO KEEP UP WITH CHANGING TECHNOLOGIES, CUSTOMER NEEDS

Greg Nix, the owner of Waters Tire in Woodruff, S.C., checks tire inventory availability from his suppliers using a point-of-sale system that Andreoli Software offers. “When investigating a new system, it is important for a dealer to focus on the processes that occupy most of their day and their biggest challenges,” says David Andreoli, president of Andreoli Software.

Photo: Andreoli & Associates

with other software and tools to maximize their effectiveness. They also have more to say about effective point-of-sale system usage — including texting — and more.

MTD: What do dealers need to know about modern retail point-of-sale systems and how can they utilize system features more efficiently?

Andreoli (Andreoli): When investigating a new system, it is important for a dealer to focus on the processes that occupy most of their day and their biggest challenges. A new system should make these tasks faster and easier, while solving the biggest challenges faced by the business owner.

Analyzing a system by a list of features can be overwhelming and can lead a dealer to make a poor choice. Do not buy with a feature checklist.

Find a system that makes sense to you. Find a system that is going to make the bulk of your day more efficient. Find a system that helps solve your core business challenges.

Hopkins (ASA): Point-of-sale products that have been available to the industry for many years should still be evolving year to year with the latest version updates. With current updates come new features that typically can be configured to fit a dealer’s workflow process.

It can be easy for a dealer to maintain business as usual and not take advantage of newer, modern technologies and features that are being introduced by point-of-sale providers. An annual account review with the provider can help maximize the value of the system in place and educate the dealer about new features that have been added and how to use them efficiently.

Fischer (Kerridge): Modern retail pointof-sale systems should have an option to run as a true cloud-based native application. This means that the software can run within an internet browser without requiring any software to be loaded on the client workstation, tablet or smart phone.

Most modern point-of-sale software provides a feature to connect to all tire

Lex Brodie Tire in Hilo, Hawaii, utilizes Kerridge Commercial Systems’ VAST product to send customers car inspection results and quote totals, and to allow customers to pay via text. “We train our customers to text the inspection results, showing what has passed and describing what your dealership recommends,” says John Fischer, vice president of sales and marketing at Kerridge.

Photo: Kerridge Commercial Systems

Point-of-sale systems

modern system can help and it can lead the user to put in accurate and complete data, but in the end, the user has to do his or her part.

Second, moving away from data, I would note modern systems can allow a tire dealer to go paperless, which greatly improves efficiency. Also a modern system can help with business analytics, such as identifying the type of customer walking in the door, what the customer wants and is willing to pay, suggesting add-on services and recommending service intervals based on vehicle service history analytics, etc. Again, that requires good data input to get a quality result.

MTD: Does your product offer a feature that allows dealers to communicate by text with customers? What are some best practices dealers should use or employ when communicating with customers through texting?

and parts suppliers in the supply chain for inquiries, ordering and back-office reconciliation. It is a feature that in many dealerships is not used frequently enough.

Many of our customers have put together training programs with our help and have offered incentives to staff to encourage this new type of workflow.

When successful, the dealership has improved profit margins, lowered costs and improved the return process of products not sold.

Adams (MaddenCo): First, the data input into the system must be good. A modern point-of-sale system will not make up for incomplete or inaccurate data input. A

Andreoli (Andreoli): Yes, via a few different third party-integrated products — the most used being AutoTextMe. It is most important not to abuse your customer’s trust by using their mobile number for mass marketing text messages, unless the customer has specifically opted in for marketing messages.

Text communications are best used while a shop is actively servicing the customer’s vehicle. These types of texts provide value to the customer by answering customer questions, alerting the customer to the status of a repair, providing a quote or providing a payment link.

Hopkins (ASA): Yes, we do. Texting

should provide two-way communications, outgoing and incoming, with the ability to store the communication in a customer’s historical records. Texting can be expanded to send reminders of upcoming appointments, status updates during a day (i.e., parts on order, vehicle is ready), allow for text-to-pay with a secure link to credit card processing and automated thank you messages at day’s end. Dealers should also give customers the opportunity to opt out of text.

Fischer (Kerridge): Yes, Our VAST software and CarSide inspection tool offer the ability to text customers the result of inspections, send quote totals and even allow customers to pay via text-to-pay.

We train our customers to text the inspection results, showing what has passed and describing what your dealership recommends. Your service writer or salesperson will see within the point-of-sale software when the customer is viewing the (vehicle) inspection. At that point, you should call your customer since they are already looking at the text, so you can discuss the results.

Adams (MaddenCo): We offer texting capabilities within our point-of-sale module and our service bay scheduling module.

Best practices would include not overusing the texting functionality. That said, real-time and automated texting capabilities can keep customers informed and allow a dealer to get feedback on the customer experience and send (customers) future promotions.

MTD: What will be the next frontier in tire dealership point-of-sale systems?

Andreoli (Andreoli): Point-of-sale systems will continue to require further integration into other systems to support the business. A new frontier in our industry is smarter machinery in the shop. Today, there are actually robots changing tires. Point-of-sale systems of the future will need to communicate with the smart machines being leveraged in the bays. This will be increasingly important.

Hopkins (ASA): Data mining with business intelligence tools will continue to grow in importance and expand with features prompting sales staff at the counter with

Resley Tire Co. in Hagerstown, Md., uses MaddenCo’s point-of-sale system to help with business analytics, service suggestions and more. “Business analytics will become even more important to tire dealers,” says Jay Adams, president of MaddenCo.

Photo: MaddenCo

Point-of-sale systems

recommendations for services due to individual customers. But the next frontier is always adapting to consumer habits and how they shift over time. With the increasing trend of retail consumers in general looking for less personal engagement with

businesses and more options to interact online — from shopping and quoting to scheduling appointments — the connection from point-of-sale to consumer-facing web portals and the sharing of data to streamline transactions will be critical.

Fischer (Kerridge): It will be critical for modern point-of-sale software to provide public application program interfaces (API), which in essence are plugs that allow the point-of-sale system to connect easily and much quicker to other software, equipment and Internet of Thing devices. Today, with most providers, (when) dealerships want to interface to another product, the software company needs to be involved. With point-of-sale software and public APIs, the dealership can work with the third party to plug into the API without the software company being involved.

Adams (MaddenCo): There will continue to be a move to having all things cloudbased or hosted in some fashion.

On the commercial side, there will be more integration between tire dealer point-of-sale systems and fleet maintenance systems. This should make the servicing process more streamlined and lead to less manual data input. Business analytics will become even more important to tire dealers. 

Largest Independent Tire Dealers in the U.S. choose

of the Top 100

With hundreds of options available, why do so many Top 100 dealers continue to choose ASA for their POS needs? An unwavering commitment to the tire industry. Find out more at ASAauto.com/meeting

Data mining with business intelligence tools will become

more important.

Photo: ASA Automotive Systems

Golden Tire Iron contest shows appreciation for techs

COMPETITION RECOGNIZES

‘BACKBONE’ OF BELLE TIRE’S BUSINESS

By

Maddie Gehring

How fast do you think it would take your best tire technicians to change a set of four tires?

Allen Park, Mich.-based Belle Tire Distributors Ltd. knows the answer to that question thanks to its recent employee appreciation effort — the Golden Tire Iron competition.

This was the second year Belle Tire held the event for all of its locations.

The competition was created in 2022 during the company’s 100th anniversary year, according to Jan Simonsen, Belle Tire’s vice president of retail operations.

“For a while we’ve been trying to figure out how to recognize the hardest working men and women and the backbone of our business, which are our tire technicians,” says Simonsen.

A team member at Belle Tire had previously worked at a company that held a similar competition for its employees and he had been pushing to bring something similar to Belle.

“We thought, ‘What a better time to do it than our 100th anniversary?’”

‘MARCH MADNESS FOR TECHS’

“The competition is essentially March Madness for tire techs,” explains Simonsen.

Simonsen’s Belle Tire territory covers Michigan, Ohio and South Bend, Ind. His counterpart, John Szeliga, has the rest of Belle Tire’s Indiana territory, as well the Chicago, Ill., market.

Each location in those districts competes until Simonsen comes out with eight teams and Szeliga with six, based on territory and locations.

The semi-finals take place within those regions — the eight compete against each other and six against each other — until one team emerges from Simonsen’s side and one team emerges from Szeliga’s side. Then it’s onto the finals.

Each team is made up of two tire technicians. They are timed to see how fast they can change a set of four tires.

“Normal safety and shop rules still apply during the competition, but we do control some variables,” says Simonson. “For example, they all work on the same car with the same tires.”

WHY HOLD A CONTEST?

The whole point behind the competition, according to Simonsen, is to recognize team members and not “overlook the tough jobs.

“It’s a fun way to build camaraderie within the company and to show these men and women we see them and appreciate their hard work.”

It also generates excitement and healthy competition.

Winners of the Golden Tire Iron competition, Nina and Matt, stand with their regional director, Scott Clayton, after changing a set of four tires in eight minutes and 48 seconds.

Photo: Belle Tire

The Golden Tire Iron competition is a way for Belle Tire to recognize the “hardest working men and women and backbone of our business, which are our tire technicians,” according to Jan Simonsen, vice president of retail operations.

Photo: Belle Tire

“Last year, when we announced we were doing this, I visited my stores and that is all my techs were talking about,” laughs Simonsen.

“They were already practicing and talking smack to one another. It created a fun, exciting energy in the store.”

The techs also win prizes if they advance into the bracket. There are 14 semi-finalists and each person receives $100 for making it to the semi-finals.

Members of the runner-up team get $500 a piece and the winning team gets $1,000 each and a trophy.

The competition concluded right before Belle Tires’ national sales meeting in January. The winners of Belle Tire’s “Super Bowl” were invited to the event, where they received awards during a special ceremony.

“I can tell you, the winners said bragging rights and the $1,000 were nice.

“But thing they appreciated the most was getting to go to the event and being publicly recognized there,” says Simonsen.

So who took home the $1,000 grand

prize? A male-female team, Matt and Nina.

They clocked in at eight minutes and 48 seconds — a half-second faster than their competition. (Editor’s note:

Belle Tire declined to provide their last names.)

Simonsen says that as long as he is around, Belle Tire is going to continue to “evolve and grow” the competition.

Building a bench of technicians

Black’s Tire Service deploys comprehensive effort

Inspiring and engaging technicians on the job is one thing. But tire dealers know it’s another herculean task altogether to find, recruit and entice technicians to walk in the door and join the team in the first place.

Black’s Tire Service Inc. is expanding its efforts once again. The tire dealership and its owners, members of the Benton family, have recently established a scholarship for high school students enrolled in automotive technology programs at each of the four high schools in Columbus County, N.C.— West Columbus High School, East Columbus High School, South Columbus High School and Whiteville High School.

Starting in the fall of the 2023-2024 school year, students who plan to continue their automotive technology education at Southeastern Community College will be eligible for a $2,500 scholarship. “This is our future and there is so much opportunity in the tire and automotive industry,” says Rick Benton, vice president of sales and marketing for Black’s Tire Service. “We look forward to growing together with the leaders of tomorrow.”

It’s the college’s first automotive scholarship. And yet it’s just one piece of the puzzle as Black’s Tire Service works to fill its bench with qualified technicians. A year ago, the company started a youth apprenticeship program to train high school students in North and South

Carolina. They recruit from both automotive and agriculture mechanical trade programs and provide entry-level, on-thejob, paid training. Students also earn school credit, as well as a state-approved certificate.

They also have the opportunity to move on from high school to a full apprenticeship program recognized by both the state of North Carolina and the state of South Carolina.

Gary Collier, a former high school trade educator, is leading the tire dealership’s training program and says one unexpected benefit of having the students at work in service bays alongside the business’ full-time staff has been the energy and enthusiasm those students have brought to the workplace.

“Team members are pouring into the young folks…ready to help them any way they can,” says Collier.

And this is only the beginning, he says. The company’s short-term vision — in the next three to five years — is “producing upward of 150 general service technicians a year. We have five to six now and getting that scaled up company wide is the next step.”

If that sounds like a dream, Collier advises dealers not to get overwhelmed or discouraged before they give their own program a try.

“I would encourage businesses just to start – start the conversation. There are resources available to help develop what you need.”

“Normal safety and shop rules still apply during the competition, but we do control some variables,” says Simonson. “For example, they all work on the same car with the same tires.”

Photo:

Belle Tire

Pulling out the stops

DEALERS SHARE PROVEN TIPS FOR MARKETING, SELLING BRAKE SERVICE

Mike Manges By

Seventy-four percent of respondents to MTD’s 2022 Tire Dealer Automotive Service Study said they offer brake service at their dealerships for an average ticket of $376.66.

“We have a very high focus on brake work,” says Brett Matschke, president of Richlonn’s Tire & Service, which is based in Muskego, Wis.

“From an industry term standpoint, it’s low-hanging fruit.

“Customers don’t realize they need (brake service) until they’ve let their brakes go a long way and if we can capture those opportunities when the time is right, we obviously want to,” he notes.

There’s no seasonality to Richlonn Tire’s brake work, according to Matschke.

“We don’t emphasize any particular time of the year when it comes to brake work. There are other services we might market more heavily certain times of the year.”

The dealership still uses print to spread the word.

“If we mail a reminder postcard to our customers, we’ll always have a coupon in there that’s especially for brake work.

“Believe it or not, there are customers out there who think we only do tires!

“And in the electronic marketing we do, if we can tag certain words or something that will link back to a search engine, we’ll do that. ‘Brake repair and ‘brake service’ are the two terms we use the most” for search engine optimization.

“We have a company that helps set those up.”

Routine vehicle inspections are another

way to start the brake service conversation, he says.

Richlonn’s Tire is looking at rolling out a digital vehicle inspection program this year and “regular inspections are still a big thing we’re doing to drive brake sales.

“If the wheels are coming off the car, we make sure those brake pads are measured. And we do measure them — in millimeters!

“We record that in our point-of-sale system, so we have the ability to go back and say, ‘OK, you were in 6,000 miles ago for your tire rotation. Your brakes pads were at this level. They’re now at this level. In six more months, they’re going to be down to this level and we’re going to talk to you about replacing them.’

“If I know a customer, I’ll joke with him and say, ‘Your car will stop eventually — one way or another!’

“The majority of people will say, ‘Let’s get things going. Let’s set up an appointment.’ The inspection is really where that whole process starts for us.

“In the last five to seven years, we’ve made it a priority and have put a lot of emphasis on making sure our people in the shop understand we want to be the first to let our customers know” they need brake work, says Matschke.

THE POWER OF INSPECTIONS

Is brake work always an easy sell? “Yes and no,” says Spencer Carruthers, owner of Kenwood Tire & Auto Service, a single-store dealership in West Bridgewater, Mass.

“Yes because people need their cars and for most it’s (a question of when), not how

When communicating needed brake work to customers, “seeing is believing,” says Spencer Carruthers, owner of Kenwood Tire & Service in West Bridgewater, Mass. “The transparency provided by shareable digital inspections is priceless. Most customers have no idea what a rusted rotor looks like — or a worn-out brake pad.”

much? That’s our niche and most brake jobs can be turned around the same day.”

That said, “you can’t assume the parts store has what you need in stock anymore. We’ll source brake parts from multiple parts stores to complete jobs.”

When communicating needed brake work to customers, “seeing is believing — so nothing is lost in the translation,” says Carruthers.

“The transparency provided by shareable digital inspections is priceless.

“Most customers have no idea what a rusted rotor looks like — or a worn-out brake pad.

“But when you can share pictures and recommendations, it creates a trust that the price is fair,” he explains.

Kenwood Tire’s techs follow a prescribed process when performing digital inspections.

“Once the tech has completed the inspection, I’ll review the findings on my desktop and make specific recommendations.

“I’ll text or email the customer their inspection link.

“Once I’m notified they have viewed it, I’ll wait a few minutes, then call and go over the findings.

“Digital inspections with real measurements and photos of the customer’s vehicle are crucial to standardizing the brake inspection and repair process,” he says.

“They also protect the shop by documenting any concerns and declined service.

“Most of our brake work is done because there is an immediate need — grinding, vibrations and soft pedals,” says Carruthers. “We don’t do specific brake marketing like coupons or specials anymore.” 

Photo: Kenwood Tire

THE PERFECT COMBINATION FOR

HIGH VOLUME SHOPS B P

BUILDING UP AND OUT

OTR TIREMAKERS FORECAST BIG YEAR FOR CONSTRUCTION TIRES

Mike Manges By

Fifteen months after the Infrastructure Investment and Jobs Act was signed into law, shovels are ready to hit the ground. That’s great news for tire dealers who sell tires for construction, roadbuilding and other applications.

OTR tire suppliers elaborate — while providing a snapshot of last year’s OTR tire market and more — in this MTD exclusive.

MTD: What was the biggest trend that impacted the OTR tire market in 2022?

SCOTT HOLUB , manager, OTR technical services, Balkrishna Industries Ltd. (BKT): Price increases and freight surcharges had the biggest impact on the OTR tire market in 2022. Increases in raw materials, higher freight charges, the cost of restarting manufacturing plants, the availability of containers, port congestion and continuous high inflation drove the cost of OTR tires up.

The higher prices drove dealers to look for different manufacturers that were less expensive and more value-driven.

Prices seemed to stabilize in the fourth quarter of 2022. Controlling raw material costs is one way to stabilize tire costs, and at BKT, we built our own carbon black plant to lower our costs and improve quality.

With the disruption in supply chain coming out of the pandemic, supply — although much better than 2021 — was still a problem in 2022. Supply started slowly and became increasingly better as the year went on. Construction inventory was sporadic, while mining inventory was still strained.

Also in CTD

“The bigger opportunity for growth in 2023 is in construction tires,” says Bruce Besancon, vice president, marketing, Yokohama Off-Highway Tires America Inc. “The huge federal commitment to rebuild and maintain infrastructure will put a lot of people and machines to work.”

remains top of mind. As a company, we aim to reach carbon neutrality and the delivery of tires made from 100% renewable materials by 2050.

That focus exists in the commercial tire space, as well, including OTR. At Bridgestone, we want our products and solutions to maximize efficiency, while conserving natural resources and reducing emissions in our business operations.

Prioritizing sustainability in products and solutions ultimately results in longer total wear, less unplanned downtime and tires — or more specifically, raw materials and resources — saved over time.

Tech-savvy customers are becoming a bigger part of the market, as well. Today’s customer wants innovative solutions that deliver real-time updates on every aspect of his or her operation, with safe and reliable equipment for the jobsite. They also want this in the palm of their hand.

TONY CRESTA , director of product management, CMA LLC: Availability was once again a very important factor in

2022 across all OTR segments. We have seen demand steadily increase coming out of the 2020/2021 global shutdowns.

Double Coin’s U.S. warehouses continued to support our customers, while our factory did a fantastic job of keeping up with the demands of the growing market.

MATT FUTRELLE , head of business field, earthmoving, Continental Tire the Americas LLC: The biggest trends in 2022 were keeping up with high total demand, focusing on being a reliable supplier to the original equipment manufacturers as they dealt with various supply chain struggles and finally the large fluctuations in material, energy and logistics costs.

Employee turnover and retention seem to be a big topic in North America for the industry, although fortunately, our OTR group remained quite stable.

LOIC RAVASIO , general manager, global Americas OTR business, Goodyear Tire & Rubber Co.: In 2022, there were several trends that combined to

ROB SEIBERT, president, off-the-road, Bridgestone Americas Inc.: Sustainability

Photo: Yokohama Off-Highway Tires America Inc.

impact the OTR tire market. As an industry, we saw that production and supply both rebounded coming out of the global pandemic, but are still ramping up.

Shipping also impacted production and distribution — making waves throughout the year.

Some market challenges persist, but as a whole, the industry is dealing with external issues and finding ways to deliver for customers.

JIMMY MCDONNELL, vice president, marketing and sales, Maxam Tire North America: Supply chain challenges and associated logistical costs regarding ocean freight (have) impacted the timeline of delivery for customers, as well as availability of some products. While we try our best to leverage our relationship with ocean freight companies and vendors, this has impacted some of our pricing as the

business had to adjust (to) the increased logistical costs.

. DAVID SMITH, brand manager, construction, Michelin and Camso, Michelin North America Inc.: Infrastructure growth in North America proved to be so significant that it put a major strain on all global manufacturers that serve this continent.

Road work, bridge building and structure erection are at all-time highs, which

“Now more than ever, dealers need to give end users that extra value,” says Scott Holub, manager, OTR technical services, Balkrishna Industries Ltd. “Every dealer can get tires and offer service, so dealers need to find ways to stand out.”

Photo: BKT

in turn have created significant demand on the OTR tire market. This trend will continue throughout 2023.

STEPHEN REYNOLDS, OTR director, Triangle Tyre USA: It would be difficult to discuss trends in the market in 2022 without mentioning both COVID-19 and the supply chain. Blockages in many logistical chains eased throughout 2022.

In addition, with COVID-19 losing its status as a crisis in the U.S., the market really began to ramp up production for most minerals to catch up on lost production in 2020 and 2021. We saw steady growth in demand for OTR tires in 2022 as a result.

BRUCE BESANCON, vice president, marketing, Yokohama Off-Highway Tires America Inc.: The biggest trend impacting the 2022 OTR tire market was its volatility.

Society — and the tire industry with it — hit 2022 at a full run after two years of lockdowns and pent-up purchasing power. A flood of orders, skyrocketing raw material and transportation prices and

OTR tires

supply chain speed bumps added up to high prices and a lot of uncertainty.

Dealers restocked — and maybe even over-stocked — and the market slowed down (during) the second half of the year.

Despite the challenges and some stressful periods, it was great to see the economy moving again and to dodge the major downturn that some economists had predicted.

If there’s one thing we’ve learned over the past three years, it’s that there is no such thing as a predictable market or normal conditions anymore. The new normal is a constant state of change, probably not as huge rises and falls, but more like choppy waves, coming at us

CHAN PHOTHISANE, OTR national sales director, ZC Rubber America Inc.: Highway construction, infrastructure and new residential construction were on fire. OTR tire demand was strong.

MTD: Which OTR tire segment mining or construction has the potential for the most growth during 2023 and why?

HOLUB (BKT): Both segments have a reason to be optimistic in 2023. Although the coal industry is threatened long-term by being replaced with hydrogen, solar and windmills, it is still an important energy source, especially in Asia.

China still derives half of (its) energy

there is expected to be 5% growth in construction. Infrastructure projects should start to take off, but with high inflation expected to continue, smaller residential and commercial ventures are expected to drop. Increased government debt is crowding out private capital investments. Overall, mining expects to have the most growth.

SEIBERT (Bridgestone): While 2022 was a dynamic year, the construction and quarry industries have been robust and we expect strong industry fundamentals to continue into 2023.

Industry measurements indicate growth in public construction and a recovery in private non-residential construction in the coming months. Signs point to growth in non-residential project planning and expectations for sales, profit, and staffing remain high for 2023. One of our key objectives in the coming year is to partner with our dealers to capitalize on this growth as a business.

We continue to see a slowdown in residential construction, primarily due to higher interest rates. Residential invest-

ment has declined for six straight months. Although we are seeing a slowdown in investment, 2022 ended with spending increased over prior year and it remains at historically high levels due to an underbuilt housing situation in the U.S.

CRESTA (CMA): While we are seeing increases across both segments, we are expecting the effects of the 2021 Infrastructure Investment and Jobs Act to continue bolster growth in the construction OTR tire segment.

FUTRELLE (Continental): We believe there will be overall growth in each of these segments and it will be an opportunity for our industry. Even if the economy slows, many construction projects have already been kicked off and funded by the various programs approved previously. In the mining segment, there is a still a lot of backlog to catch up to in the year 2023 and this business seems to remain strong.

RAVASIO (Goodyear): Let me start by saying that both the mining and construction businesses have potential and are poised for an impactful year in 2023. Based

on the market trends we see impacting the OTR business, we anticipate that the mining industry has the bigger potential for growth. The need for more mineral resources globally means that the mining industry should see more opportunity for consistent growth in the year ahead.

MCDONNELL (Maxam): The construction segment — with the investments in infrastructure and contracts being awarded. We have spent the past year growing our construction segment and its solutions to keep up with the increased demands in infrastructure.

SMITH (Michelin): Fixed site and mobile site construction has the most potential for growth in 2023. With the U.S. Congress recently passing the infrastructure bill, there is plenty of fuel to push growth in this segment. We will see non-residential growth increase significantly, as it has already begun across all of the U.S.

REYNOLDS (Triangle): I think it’s pretty clear that the construction segment has the most room for growth potential in 2023.

We are expecting the effects of the 2021 Infrastructure Investment and Jobs Act to continue to bolster growth in the construction OTR tire segment,” says Tony Cresta, director of product management, CMA LLC.

Photo: CMA

After seeing some growth for coal in both 2021 and 2022, most experts expect that market to take an 8% to 9% decrease in 2023.

Many minerals, such as copper and iron ore, are expected to hold steady or even increase somewhat in production, but most are expected to decrease in value. I don’t think the mining market will be soft, but there really aren’t any indicators for significant growth in 2023.

Construction, on the other hand, should see an increase due the infrastructure bill. It’s true that inflation has weakened the impact of funding and that in part was responsible for the slow construction starts in 2022.

There are signs, however, that as supply chains improve, prices for many construction materials are leveling off. If the infrastructure bill had not been passed and that funding was not in place for localities, the impact of inflation would have been far worse on construction projects.

I expect to see a steady mining segment and a healthy construction segment despite what is almost certainly going to be a struggling economy in 2023.

BESANCON (Yokohama): Mining is a stable platform for tire sales. In general, mining doesn’t experience big swings and I believe it’s on a steady, positive trajectory right now.

The bigger opportunity for growth in 2023 is in construction tires. The huge federal commitment to rebuild and maintain infrastructure will put a lot of people and machines to work.

Much of that work is going to be in the construction industry’s version of what transportation experts would call “the last mile.” Let’s call it “the last brick.” Billions of dollars’ worth of projects are going to be (devoted to) maintenance and improvement — not the massive earthmoving that marks projects starting from scratch, but digging, demolition, building and paving with smaller machines that can operate between buildings or on existing roads. That means a significant demand for tires in the 25-inch rim size and under.

Those smaller machines are also getting more efficient than ever, carrying more loads — and, often, heavier ones — per production hour. That represents more demand than ever on tires.

Today’s tire dealer needs to be ready and able to help construction customers select the right tire for the job and condi-

OTR tires

tions, mount it quickly and manage it correctly. We’re also going to see more paving and compaction machinery out there, thanks to the road-building elements of the infrastructure law.

PHOTHISANE (ZC Rubber): The mining industry will be challenged by Environmental Social Governance. Climate change, supply chain disruption and trade restriction will impact the mining industry. As the world moves toward life powered by electricity, the demand for copper also rises. Copper will be in high demand.

The shift from coal to natural gas and renewable resources has changed the industry. Coal mining is expected to decrease over time, but coal mining should be OK in 2023. Road construction will drive up demand for gravel, rock and sand.

High interest rates, rising material costs and a labor shortage will slow down residential construction. Lumber demand has slowed down in certain regions. Overstocked mills are lowering lumber prices.

Corporate employees are working from home and meeting on Zoom. There is less need for office space today than there was yesterday. Downsizing to empty offices will be filled before new construction offices are built. We expect residential and warehouse construction to slow down in 2023.

The U.S. economy is on the rise and the dollar is stronger. Highways, rail, bridge, airports and ports will get a facelift. We expect growth in commercial, industrial, infrastructure and institutional construction. Construction tire demand will continue to be strong in 2023.

MTD: What’s your advice for OTR tire dealers in 2023?

HOLUB (BKT): With OTR inventory increasing and OTR tire pricing stabilizing, we recommend that tire dealers keep a close eye on manufacturers’ programs to maximize buying discounts. We would also encourage dealers to really partner up with manufacturers that have shared values and business goals.

Dealers should work with manufacturers to maximize new smart tire technologies. Now more than ever, dealers need to give end users that extra value.

Every dealer can get tires and offer service, so dealers need to find ways to stand out.

SEIBERT (Bridgestone): We encourage dealers to focus on the construction segment this year, particularly an expected uptick in 25-inch (tire) sales. This is largely due to tailwinds from the infrastructure bill within this size range and upside in the construction segment, which accounts for the majority (of) demand in these sizes. In the end, 25-inch tire demand is expected to increase versus prior-year.

Moreover, dealers are encouraged to keep an eye on customer interest in technology and solutions that maximize efficiency. With sustainability top of mind in the industry, that should continue into 2023.

CRESTA (CMA): We have been hearing from dealers across the country that their warehouses are stuffed full with tires from all segments. Considering this trend, it’s unlikely that every OTR tire dealer has the warehouse space or current inventory on hand for their 2023 OTR tire needs.

With all that being said, tire dealers will need to begin to look at where they had limitations with their current OTR tire suppliers in 2022 — inventory availability, sizing options — and make sure they have a plan in place to fill the gaps in their supply.

FUTRELLE (Continental): Pick reliable partners that can support your business — partners who are adaptable in the event of market changes, who can bring reliable products that add value to your business and customers and who have a vision for the future in the area of digitalization.

RAVASIO (Goodyear): My advice for OTR tire dealers in 2023 is to find partners that will help build and manage their inventory properly. Close partnerships between suppliers and dealers will ensure you can manage challenges, look ahead for new opportunities and make sure you have a plan in place to get the tires you need. In 2023, planning ahead will mean planning differently and that takes collaboration and partnership.

MCDONNELL (Maxam): Manage inventory closely and stay focused on adding value to the customers’ business by ensuring efficiency and cost reduction measures.

SMITH (Michelin): With the influx in demand for tires in North America, it is important to know your customer base

and what tires can bring them the best total cost of ownership. Knowing what tires you sell — along with their features, advantages and benefits — provides a dealer a deeper relationship with their customer.

REYNOLDS (Triangle): Given the impact of inflation, it is more important than ever to provide diligent and informed services to end users. In most cases, fuel and tires are their top two costs.

As an OTR dealer and trusted adviser to your clients, it is your responsibility to make sure you are recommending the proper tires, facilitating best maintenance practices in order to maximize tire life and determining that the products you recommend are giving (customers) the best value for their money. Tackling these issues isn’t easy and often requires some investment on the dealer’s part — in the form of training for OTR sales staff or investing in a more diverse inventory.

A well-trained, knowledgeable staff and the correct products available for key, specific applications will certainly

OTR tires

pay dividends in the long run and will separate you from your competition.

BESANCON (Yokohama): Today, data is just as important as horsepower. The operators of construction equipment and the managers of those fleets are getting a stream of data from every machine. Every time a bucket lifts and every time a needle moves on a gauge, it’s recorded and analyzed. All that information is helping maximize productivity at ground level.

Tire dealers also have access to more data than ever. And like their customers, they’ve got to put the data to work to improve efficiency and productivity.

We’ve just launched an online B2B portal for our dealers that allows them to manage their inventory better than ever before. The most successful dealers will be the ones who use information to make sure they’ve got the knowledge and the tires to support their customers. I think we’ll see demand for a wide range of tires, from the premium radial categories for long cycles to the dependable, cost-effective, bias-ply offer-

ings for the roll-up-your-sleeves workaday applications and everything in between.

Dealers have access to more information than ever, but then again, so do their customers.

A construction maintenance supervisor can get online and figure out pretty quickly which tires are on the market and what they cost, so tire dealers have to work closely with their customers on more than price. They have to be trusted sources of information, part of the customer’s team and part of their success.

PHOTHISANE (ZC Rubber): Tire availability will play a major role in OTR tire growth. Many tire dealers are dealing with warehouse inventory overstock. Limited space has affected stocking space for OTR tires. I would encourage tire dealers to keep OTR tires in stock. You can’t sell what you don’t have.

Also stay in communication with your customers, do fleet surveys and take your customers out to lunch. A small token of appreciation can go a long way. 

WHEN SHOULD R-1/R-1W TIRES BE REPLACED?

PLUS TIPS TO HELP ENSURE TOP PERFORMANCE

Modern Tire Dealer has partnered with AG Tire Talk to provide answers to insightful questions that farm tire dealers have about farm tire technology. This is the next installment in our ongoing series, which is designed to help farm tire dealers better connect with their customers. A trending question, followed by answers, will appear in our Commercial Tire Dealer section every other month. For complete answers, click on www.agtiretalk.com.

GREG GILLAND, vice president, global agriculture, Maxam Tire North America Inc.: In the agricultural industry, it is how the equipment is utilized or the inherent operational requirements that will affect the tire replacement cycle.

As agricultural tires are considered off-road and not U.S. Department of Transportation-regulated, there are no firm rules to determine when an ag tire absolutely needs to be replaced.

In all cases, Maxam recommends utilizing ag tires for the longest possible time, regardless of the type of tire R-1 or R-1W — if the tire can be safely utilized to meet operational requirements and therefore achieve the most value for the tires in question.

QUESTION: How do you know when R-1/R-1W tires need to be replaced? What rules should be followed to ensure maximum performance and why do overall tire diameters vary slightly by manufacturer?

DAVE PAULK, manager, field technical services, BKT USA Inc.: A general rule of thumb is that when a tire gets below about 20% of its original tread depth, it may be time to start shopping for new tires, depending on the use of the tractor. Soil types and the amount of moisture also play a role in how effective tires are when they start wearing down.

Care should also be taken to protect tires by not driving directly over stubble in the spring. Stubble damage can chip away the outside rubber in the tread area and expose cords underneath. GMO technology is great for yields, pests, wind, etc., but terrible for tires. Rubber is no match for the hardness of GMO stalks, especially after they have been in the elements all winter.

The overall diameter in radial tires can differ between brands because of maximum growth rates and other factors. Metric-sized radial tires between manufacturers are gener-

ally close to the same overall diameter and rolling circumference and can be inter-changed between brands when needed.

When replacing one tire that has been damaged, the tread depth needs to be matched closely with the older tires. This may require replacing a couple of tires if the older tires are 25% or more worn.

When replacing tires and matching to older tires, the same load indexes should be used. Different load indexes recommend different air pressures for carrying capacity. It is best to use the same brand on an axle and match up a tire with the same brand whenever possible.

With mechanical four-wheel drive tractors, make sure tire rolling circumferences closely match when using other brands.

With radials, brands can usually be mixed. Different brands can be used on the front and the rear if the lead/lag ratio is within limits.

If R-1Ws are used on the rear, they should also be used on the front. Tread patterns should be close to the same in order to ensure good traction and mobility.

Maintaining equipment and tires regularly is important to reducing downtime and fuel expenses over the long term.

DAVID GRADEN, operational market manager, agriculture, Michelin North America Inc.: Natural rubber has a shelf life, much like the loaf of bread in your pantry. When it comes to replacing ag tires, we highly recommend replacing all tires across the axle with the same brand. You will find slightly different overall diameter — and even section width — measurements between manufacturers. This is due to the allowable variance in standard tire sizing. With regard to replacing all tires on both axles when one gets damaged, this is not necessary.

However, you may need to adjust the air pressures between front and rear axles to avoid road loping or power hop. Road loping is typically caused when the gap between front and rear tires overcomes the mechanical ratio — even when the front power is disengaged. Power hop is typically incurred when front tires have more tractive capacity than the rear.

The bottom line is that air pressure changes the overall diameter of the tire. When you also change the lug depth by replacing worn tires with new, the overall diameter of those new tires in relation to the worn tires has been also been altered.

CHRIS NEIDERT, marketing, training and development manager, ag, Trel-

leborg Wheel Systems: There are many things to take into consideration when considering replacing tires due to a worn tread. Application will be the main driver. If your customer is just using the tractor on very hard surfaces such as concrete or hard pan, where effective traction is not as important as the tire load carrying capability, many times you can delay the replacement decision and let the tires run down closer to a smooth tread.

On the other hand, tires need to provide effective traction. If your customer’s tractor can display the current wheel to ground slippage, you can monitor the amount of slip that is being produced in real time. An acceptable wheel to ground slippage will be ranging between 5% and 15%.

You can monitor slippage and once it goes above 15% on a regular basis, the tractor will start to lose traction and efficiency. This loss in traction efficiency represents an increase in fuel usage and increased time to do field work. Tire replacement should start to be considered. If your customer’s tractor is not equipped with a slip meter, once the tire gets below 25% of the original tread depth you should start to consider tire replacement. As discussed above, additional slipping will start to happen — taking more time to complete work and using more fuel.

BLAINE COX, national product manager — agriculture, golf and turf, Yokohama Off-Highway Tires America Inc.: There are a few situations in which you absolutely need to replace an R-1 or R-1W tire immediately — if you see an oblong bulge that indicates a rupture in the casing or if excessive wear has exposed belt wires or ply fabric.

Those conditions are unsafe and must be addressed at once. Ozone cracking, which you can spot by a network of spiderweb-like cracks and the loss of elasticity, can also be a reason to replace tires.

When it comes to regular lug wear, the right time to replace an R-1 or R-1W tire can be more of a matter of taste, economics and the kind of use your customer expects from the tire. For tires that are used in the field, watch for excessive slip. Properly inflated tires should slip 10% to 15% in dry soil. If you you can’t monitor slip, step out and look at your tire prints in the soil. Optimum slip will leave just a little crumbled soil in the center of the tire track, while excessive slip will

leave a blurry print or piles of kicked-up dirt. When it comes to maximum performance, the most important thing you can do for your customer’s tires is inflate them properly.

That will ensure that the sidewalls have the proper amount of flex and support, the tire’s contact patch is the optimum size and shape and that it will get the most even wear. Operating at the proper inflation pressure

maximizes tire performance and tire life. Another aspect of tire engineering is the outer diameter of a tire, which can vary from one design to the next, so not all ag tires in a specific size are exactly the same height.

Tread depth differences — such as those between an R-1 or R-1W or an R-2 — can also cause a difference in overall diameter. 

We provide world-class retread solutions to independent retreaders throughout the United States and Canada that includes over 70 different precured tread designs, commercial & OTR extruder strips, cushion, repair materials, and technical support.

MANUFACTURING HIGH-QUALITY PRECURED TREADS AND RETREADING MATERIALS SINCE 1952

Dennis McCarron By

the

You read that headline right. The customer is most definitely not always right — in the automotive retail space, at least. Most customers know very little about their cars, let alone how to repair them.

To default to the opinion of the customer every single time is a disastrous approach to customer satisfaction.

Would you give all your retirement money to someone who knew next to nothing about retirement planning?

No!

So why does the axiom “the customer is always right” persist?

Because it sounds good. It sounds like you are prioritizing the needs and happiness of a customer over pinching pennies or making profit.

But just doing what the customer says — especially when they are angry or upset — rarely results in a solution where the customer will happily return to your dealership.

If a customer doesn’t know how a vehicle works or how to fix it, how can they possibly know — out of all the potential solutions — which fix not only works best, but will also make them happy?

Let’s even look at this from a nonhostile situation.

Let’s say a customer who drives a relatively new performance vehicle wants new tires, but thinks S-rated tires will do just fine.

Or maybe the customer wants to change the size of their tires and wheels and picked a new size out of thin air.

The customer is not always right.

We work in what I call a “double negative” environment.

People will gleefully upgrade their two-year-old phone for $1,500.

But when you tell them that a new set

of tires — which will make them safer on the road — is the same price, the look of disappointment they display is very common.

That two-punch combo — little knowledge and a resistance to spending money — makes the automotive aftermarket a very challenging place.

It can be difficult to deal with multiple customers who have their guard up so high every day.

This is why the continued professionalization of our industry is so important. You can’t just hire a salesperson who knows something about cars or is still selling like it’s 1985.

Only after an upset customer feels they are being heard will they be willing to listen.

Quite commonly, after being treated respectfully, a customer will change their mind on the demand they made just a few minutes ago.

On the occasion where a customer is asking us to do something unsafe with their vehicle, again you have to let the customer be heard and ask some probing questions — not just lecture them on the rules.

If you probe for more information, you may end up learning they thought they could save money doing this.

You then can educate them on why their request won’t end up saving them money. If you use the customer’s own reasons to educate them, you are more likely to find agreement somewhere.

It is critical to start providing the aforementioned skills to the people on your front lines.

And provide them with opportunities to learn effective negotiation skills.

Today’s professional service advisor needs to be quite skilled at engaging the customer at all levels of emotional state, while assuring them that the second biggest purchase of their life is in good hands and that they will be treated with respect.

You see, the most important thing a professional can do is to make sure that the customer makes the most informed decision possible — not just any decision.

In order to do that, the customer must spend time listening to your service advisor.

If the customer is in an agitated state, listening usually isn’t a high priority, so the advisor has to learn techniques that will allow the customer to vent and first be heard.

Proper negotiation skills can help sales advisors protect price integrity and leverage other negotiables, such as time frame or scope of work.

If 2022 showed us anything, it’s that customers are willing to pay a higher price for goods and services, but expect high-quality returns on that price. Professionalizing your sales advisor role will go a long way to adding value to the high cost of today’s vehicle repairs, maintenance and tires. Customers need you to be a trusted advisor, as they understand less and less about how their vehicles work. ■

Dennis McCarron is a partner at Cardinal Brokers, one of the leading brokers in the tire and automotive industry (www.cardinalbrokers.com). To contact McCarron, email him at dennis@cardinalbrokers.com

Customers need you to be a trusted advisor, as they understand less and less about their vehicles.

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Mergers and Acquisitions

Business models and relative value

THE HIERARCHY OF VALUE FOR 2023

Michael McGregor By

Three years ago, I made a stab at ranking the various business segments that I typically run into when representing tire dealers in the lower-middle market. e purpose was to explain to tire dealers why a prospective buyer might view their businesses’ value di erently than they do.

I regularly run across tire dealers who run a mix of businesses, like the tire retailer who opened a warehouse to deliver tires to his stores and then started wholesaling to sell more units at better pricing; or the tire distributor who opened a commercial tire store at the warehouse to serve local government contracts; or the commercial tire dealer who has everything — a handful of retail stores, a retread plant and maybe a wholesale operation on the side.

I never fault owners for pursuing a lowrisk opportunities to make more money by leveraging what they already were doing in the same geography.

One nds this a lot with what we call lifestyle businesses, which help a tire dealer to have a better and easier life, as opposed to businesses that are built to be national or regional chains.

But a prospective acquirer of your business might not be as interested in all the business segments that you chose to get into. While you were building a business that improved your lifestyle, you might also have built a business model comprised of di ering business segments that have values all their own.

e chart on this page represents my view of the relative market value of the di erent segments that you’ll see in the lower-middle market in privately held U.S. tire businesses.

It doesn’t apply to large public companies like Driven Brands, tire distributors the size of U.S. AutoForce LLC or even regional commercial dealers like Pomp’s Tire Service Inc. and McCarthy Tire Service Co. Inc.

Once you reach a certain size and scale, you’re in a whole di erent category of value.

A business segment’s place in my hierarchy of value is determined by a mix of things, like pro tability and margins, recent market activity, positive or negative long-term trends and threats to the business model.

For 2023, we are increasingly seeing buyers looking at how businesses performed during the last recession, so recessionresistance and competitive environment have become more important factors in determining a business’ value.

It’s clear to me that as a general rule, retail businesses are valued higher than wholesale tire businesses and wholesale tire businesses are valued higher than commercial tire businesses.

e primary driving factors here are EBITDA, gross pro t margins and recent market activity for these businesses.

In retail, city locations are still preferred by most acquirers to rural locations. is likely has to do with population densities, sales volumes per store and “purity” of the mix of business. As one gets more rural, one tends to nd a mix of retail, commercial and wholesale in the business mix.

Now franchise locations may experience a chill on valuation, only if they are constrained by the franchisor having the ability to nix who a franchisee can sell to — sometimes they control a location’s real estate lease — or if the franchisor has a right of rst refusal to purchase the business at a pre-determined valuation formula.

While it’s hard to generalize about wholesale businesses, I’m seeing that higher valuations tend to coincide with higher margins.

e substitutable brands a wholesaler carries — as well as fresh geography —

will impact a buyer’s sales and pro t analysis greatly.

Commercial tire dealers have room for optimism on valuations now that most tire manufacturers have shed many of their company-owned commercial outlets. Tredroc Tire Service Inc.’s sale to Pomp’s Tire Service in 2022 was a step in the right direction for commercial tire dealership values.

Like I always say, your business is likely the largest investment that you own and improving its value will make you wealthier. Consider repositioning and rationalizing your business by xing, selling or closing unpro table business lines and re-investing in higher-value ones.

Stop trying to be all things to all people and focus on what you can be great at. At a minimum, invest in better nancial reporting and disciplined cost accounting to accurately measure your varied businesses, so everyone can see where the value is. is will help you capture more value for yourself and not leave it to others when you exit.

Michael McGregor is a partner at Focus Investment Banking LLC (focusbankers.com/automotive/tire-and-service). He advises and assists multi-location tire dealers on mergers and acquisitions. For more information, contact him at michael. mcgregor@focusbankers.com.

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A better grasp on life-work balance

USE THE RESOURCES AT YOUR DISPOSAL

Randy O’Connor By

Having just rounded the corner of a new year, we’re all reminded in one way or another that time doesn’t stand still. For most, the pace at which time passes seems to accelerate with every passing year.

Even though the world around us screams for more life-work balance, finding the strategies to enhance our own balance somehow seems a difficult task. Why?

The resources we have at our disposal are greater than ever, yet somehow the world still moves too quickly.

Maybe that’s the problem — everything is too much, too broad and too fast.

Like you, most tire dealership owners, managers, technicians and advisors are guilty of glazing over topics and concerns, rather than intently taking the time to delve deeper into a set or subset of specific subjects.

The problem is that our nine-to-five jobs — or in some cases, our seven-to-seven jobs — consume so much of our time and energy that there’s not much left over for other things. Our daily behaviors come about by way of our familiar conditioning and our experiential conditioning, nature and nurture and some combination thereof.

Over the years, we’ve all had a certain amount of daily behaviors that were expected of us.

And we delivered on those expectations to our own individual levels of satisfaction.

As we age, most of us are expected to deliver on others’ expectations.

As a tire dealer, you work 10 to 12 hours a day, at minimum, and there’s no way to make good on anyone else’s idea of how you should be spending your “me” time.

But if you spend all your work time performing, you’re never practicing or preparing.

You’re never stepping outside of the ring to look at your own performance.

You’re never purposefully and usefully taking in data, skills, knowledge and strategies to any significant extent.

In other words, you’re allowing your work to affect your life — as well as the future success of your business — rather than allowing your life to affect your work.

This is a cyclical and gradual recipe for disappointment, frustration, burn-out and even ruin. We’re all better than that and we know it. You know it. So as we move through 2023, what’s the message?

1. Take a deep breath.

2. Always prepare to be a step or two ahead.

3. Invest in yourself and your business.

The costs of education in our industry are significantly less than traditional higher education, so you have no excuse. Give yourself homework, find creative outlets and grade yourself honestly.

And here’s a quick note on homework. It doesn’t have to be tire and auto service-related, but it should challenge you and make you a better person.

Finally, be graceful, patient and passionate in everything you do. Nothing happens overnight.

Every system has a process and every process has a set of behaviors. Focus on adapting your behaviors to suit the process.

Here are a few unsponsored suggestions, both in our industry and outside of it, that may get the juices flowing.

If you like “reality TV,” check out “Kitchen Nightmares.” The parallels to our industry are blatantly awesome!

If you’re a thrill seeker looking for an edge on life, “Limitless” on the National Geographic channel will definitely get you thinking.

If you’re not a reader, invest $5 a month in audible.com and set aside 30 minutes a day to download a file and listen. Make this your new driving-to-work tradition.

If you want a shortcut to the best books, $99 gets you the “CliffNotes” version of awesome titles via Blinkist. Titles like “Four Disciplines of Execution,” “The Power of Habit,” and others will serve you well.

The reality is that life-work passes us by and we’re all left wondering how it happened.

Investing the extra minutes each day to find your balance, become a student and push beyond your routines to something just a touch more will make all the difference in your personal satisfaction and the health of your dealership.

It’s 2023 and the resources are all there. How will you use them? 

Tire and auto industry veteran Randy O’Connor is the Owner/Principal of D2D Development Group (Dealer to Dealer Development Group.) He can be reached at randy@d2ddevelopmentgroup.com. For more information, please visit www. d2ddevelopmentgroup.com.

If you spend all your work time performing, you’re never practicing or preparing.

EV Intelligence

Speaking the EV language

WHAT DOES MPG EQUATE TO IN MPGE?

Craig Van Batenburg By

An important part of taking care of electric vehicle (EV) owners is knowing and understanding the terms associated with battery range. And that starts with understanding how the U.S. government compares gasoline energy to electrical energy. The latter is referred to as miles per gallon (mpg) equivalent (MPGe.)

To calculate MPGe, one must do the following — establish the amount of energy (by weight) in a battery cell compared to the same amount of energy (by weight) in the form of gasoline. Then take that amount of electrical energy and see how far you can drive. The distance is your “miles driven on one ‘gallon’ of electricity” and that is your MPGe.

Before MPGe was established, the Feds measured range by how far an EV travels on one charge.

Once MPGe was established, range became the amount of energy in a battery pack — listed in kilowatt-hours (kWh) — which is provided by original equipment vehicle manufacturers.

Sometimes you will see a label attached to the battery case that states the kWh. Add in some mathematical calculations and you will have a comparison of MPGe versus miles per gallon. Just like miles per gallon in the gasoline world, the range of an EV will vary based on how the customer drives, including speed, plus wind, road conditions and outside temperature.

is rated at 80 AH. A 100-AH battery will provide one amp for 100 hours — or 10 amps for 10 hours.

Some battery manufacturers rate their batteries in watt-hours. The watt-hour rating is determined at eight degrees Fahrenheit because the battery’s capacity changes with temperature.

The rating is calculated by multiplying a battery’s amp hour rating by the battery’s voltage. The watt hour rating of a battery may be listed in units of kilowatts.

If a battery can deliver five AH at 200 volts, it is rated at one kilowatt-hour. The kWh is what you will see on plug-in EVs when the HV battery is rated.

A plug-in vehicle may display on the dash “miles per 1,000 watts” (1,000 watts is 1Kw) as its “fuel mileage”. Driving four miles per Kw is very efficient for a plug-in.

LOSS OF RANGE IN COLD WEATHER

In cold weather, all types of vehicles use more fuel, but EVs have a harder time than others.

Knowing how to talk with your plug-in electric vehicle (PHEV) and EV customers will help them feel that you “get them.”

Any vehicle with an ICE produces more heat than it needs. The hot coolant — warmed by the ICE — is circulated under the dash in a small radiator called a heater core.

Without an ICE, there is very little waste heat, as an EV’s electric motor and large battery will warm up under use, but not enough to heat up the car’s cabin.

In cold weather, the range of a pure EV is reduced as its high-voltage battery is used to make heat.

How much range is lost depends on a few factors, but the biggest drain on range is heating the EV’s cabin.

By the way, one big difference between an EV and a hybrid electric vehicle (HEV) is how the car’s cabin is heated.

When there is no internal combustion engine (ICE), there is no “free” heat. I’ll elaborate on how cold weather impacts EV batteries later in this column.

Another range-related unit of measurement from the past is “amp-hour” for lead-acid batteries. All these terms can be mind-boggling, but stay with me.

Driving deeper into electric batteries, other battery designs — like those used in cell phones — are still rated in ampere-hours (AH) or milliamp-hours, for example.

The AH rating is the amount of steady current that a fully charged battery can supply for 20 hours at 80 degrees Fahrenheit without the cell’s voltage dropping below a predetermined level. For example, if a 12-volt battery can be discharged for 20 hours at a rate of four amperes before its voltage drops to 10.5 volts, it

The colder it is, the more range is lost. There are three ways to heat the cabin in an electric car.

Number one is to heat up some coolant and use a heater core and a 12-volt fan behind it. Number two is to use high-voltage cables that get hot and then blow air over them.

Number three is to use the air conditioner as a heat pump and make hot air instead of cold air. Heat pumps are the most efficient option.

If you live in a cold climate and your customer is losing range, now you know why. 

Craig Van Batenburg is the CEO of Van Batenburg’s Garage Inc., dba Automotive Career Development Center (ACDC), which is based in Worcester, Mass. A 50year automotive service industry veteran, Van Batenburg provides training for facilities that service - or want to service - electric and hybrid vehicles. For more information, see www.fixhybrid.com or email him at craig@fixhybrid.com.

The range of an EV will vary based on how the customer drives.

WE WANT TO HEAR FROM YOU!

Nominate a candidate for MTD’s 2023 Tire Dealer of the Year Award

Established in 1993, Modern Tire Dealer’s Tire Dealer of the Year Award is the oldest, most prestigious honor of its kind. Each year, Tire Dealer of the Year Award candidates are evaluated in five categories:

1. BUSINESS SUCCESS

2. MARKETING SKILLS

3. MANAGEMENT SKILLS

4. INDUSTRY KNOWLEDGE

Do you know an independent tire dealer who excels in these areas? Nominate him or her today!

DEADLINE FOR ENTRIES IS MAY 26, 2023

TPMS Cadillac XT5 – 2022

DESCRIPTION & OPERATION

e tire pressure monitor system warns the driver when a signi cant loss of tire pressure occurs in any of the equipped tires. If the tire is overin ated by more than 35 kPa (5 psi), the horn will sound multiple times and the turn signal lamp will continue to ash for several seconds a er lling stops. When the recommended pressure is reached, the horn sounds once. If a new sensor has been installed or tire rotated, the vehicle must be stationary for about 20 minutes before the system can start the process of calculating correct sensor locations. For this to happen, the vehicle will need to be driven at a speed greater than 12 mph for about 10 min. When the tire pressure system detects a signi cant loss or gain of tire pressure, the tire pressure monitor indicator icon is continuously illuminated on the instrument cluster and if equipped, a check tire pressure type message is displayed on the driver information center. Both the indicator icon and driver information center message can be cleared by adjusting the tire pressures to the recommended kPa/psi. To reactivate the sensors, the vehicle must be driven above 25 mph for at least two minutes. When the sensors are activated, the driver information center displays the current tire pressures.

e EL-52545 tire pressure monitor sensor and RF diagnostic tool may also be used to activate the sensors. e BCM has the ability to detect malfunctions within the TPMS. In the event a DTC is set, the tire pressure monitor indicator icon on the instrument

cluster will flash for approximately one minute, and then remain illuminated for the remainder of the key cycle.

A er a key cycle and the instrument cluster bulb check has been completed, the indicator will again ash for one minute, and then remain illuminated if the DTC persists. Any malfunction detected will cause the driver information center to display a service tire monitor system message.

TIRE PRESSURE INDICATOR SENSOR LEARN Special Tools

EL-52545 Tire Pressure Monitor Sensor and RF Diagnostic Tool

TIRE PRESSURE SENSOR LEARN WITH EL-52545 (PREFERRED)

e EL-52545 allows the tire pressure sensors to be learned without transmitting RF data between the sensors and the vehicle.

When using the EL-52545, each tire pressure sensor ID is learned and stored internally. The EL-52545 is then connected to the vehicle DLC using the OBD2 Interface Module, which is part of the EL-52545 kit. e stored tire pressure sensor information will then be loaded into the K9 Body Control Module. Using the EL-52545 to learn tire pressure sensors will prevent the vehicle from learning an errant nearby tire pressure sensor from other vehicles in a service facility environment, especially if the tire pressure sensor batteries are low. is is the GM recommended method to learn tire pressure sensors.

1) Turn on EL-52545

2) Select RDR from the display screen. NOTE: Make sure the TPMS tool battery is su cient to complete the learn process. Do not place the TPMS tool directly on the valve stem. e tool should be placed against the tire sidewall near the valve stem. e sensor learn activation procedure may have to be repeated up to three times before determining a sensor is malfunctioning.

3) If available, scan the QR code on the

vehicle’s tire placard or certi cation label. If QR is not available, select MMY from the on-screen display and manually input the vehicle information.

4) Approach the vehicle starting with the le front tire and read each tire pressure sensor information by pressing the green trigger button with the EL-52545 located near the tire valve stem. Read each tire pressure sensor in the order identi ed on the EL-52545.

• If any tire pressure sensors do not respond, replace the tire pressure sensor only a er several attempts have been made to identify all sensors. An undetected sensor will be identi ed with “no sensor detected” displayed in the table. A er sensor replacement rerun RDR procedure. Go to next step once all tire pressure sensors respond.

5) Verify the BAT value for each tire pressure sensor in the table on the EL-52545 is OK.

• If not OK, replace the tire pressure sensor and rerun RDR procedure. Go to next step once all are OK.

6) Verify the pressure and temperature values are reasonable based on the ambient conditions and actual tire pressure.

• If either value is inaccurate, replace the tire pressure sensor and rerun RDR procedure. Go to next step once both values are accurate.

Fig. 1. Insert an anti-rotation pin through the hole in the valve stem.

Photos: Mitchell 1

Fig. 2. Don’t twist the tire pressure sensor to remove it.

7) Ignition On/Vehicle in Service Mode.

8) Connect the EL-52545 OBD2 Interface Module to the EL-52545.

9) Verify the OBDII icon is displayed on the EL-52545 and the green com LED is flashing on the EL-52545 OBD2 Interface Module.

10) Connect the other end of the OBD2 Interface Module to the vehicle DLC.

11) Select OK on the EL-52545 and follow the on-screen instructions.

TIRE PRESSURE SENSOR LEARN WITH EL-50448 (ALTERNATIVE)

When EL-50448 Tire Pressure Monitor Sensor Activation Tool is used in activate mode, it produces a low frequency transmission that activates the sensor. The sensor responds to a low frequency activation by transmitting in Learn Mode-Remotely Triggered. When the BCM receives a learn mode transmission while in learn mode, it will assign that sensor’s ID to the location on the vehicle relative to the order in which it was learned.

NOTE: In the event a particular sensor is activated and the horn does not chirp, it may be necessary to rotate the wheel so that the valve stem is in a different position because the sensor signal is being blocked by another component. Make sure the TPMS tool battery is sufficient to complete the learn process. Do not place the TPMS tool directly on the valve stem.

The tool should be placed against the tire sidewall near the valve stem. The TPMS sensor learn activation procedure may have to be repeated up to three times before determining a sensor is malfunctioning.

1) Ignition On/Vehicle in Service Mode, using driver information center buttons, initiate the Tire Pressure Sensors Learn mode. A double horn chirp will sound indicating the learn

Fig. 3. Pull the new bolt straight off the new valve stem.

Fig. 4. Make sure the valve stem is seated fully on the wheel.

TPMS

mode has been enabled. The left front turn signal will also be illuminated.

2) Starting with the left front tire, activate the sensor by holding the antenna of the tire pressure monitor activation tool aimed upward against the tire sidewall close to the wheel at the valve stem location. Press and release the activate button. Ensure that the transmit indicator on the tool indicates the sensor activation signal is being transmitted. Wait for a horn chirp. If the horn does not chirp, repeat the sensor activation sequence with the tool. Once the horn chirp has sounded, the sensor information is learned and the turn signal in the next location to be learned will illuminate.

3) After the horn chirp has sounded and the right front turn signal is illuminated, repeat step three for the remaining three sensors in the following order: right front, right rear, left rear.

4) When the left rear sensor has been learned and a double horn chirp has sounded, the learn process is complete and the BCM exits the learn mode.

TIRE PRESSURE SENSOR REMOVAL AND INSTALLATION

Single use fasteners and components include the tire pressure indicator sensor bolt and tire valve front and rear stem.

Removal Procedure

1) Raise and support the vehicle.

2) Remove the tire and wheel assembly.

Hands

3) Demount the tire from the wheel.

4) Insert an anti-rotation pin through the cross-drilled hole in the valve stem (Fig. 1).

5) As seen in Fig. 2, hold the valve stem (3) to prevent it from rotating, then remove and discard the bolt (1) from the tire pressure indicator sensor (2).NOTE: Do not twist the tire pressure indicator sensor to remove.

6) Pull the tire pressure indicator sensor straight off the valve stem.

7) Cut the inner seal off the valve stem. CAUTION: Do not scratch or damage the clear coating on aluminum wheels with the tire changing equipment. Scratching the clear coating could cause the aluminum wheel to corrode and the clear coating to peel from the wheel.

8) Remove and discard the valve stem by pulling it through the wheel using a valve stem removal tool.

9) Clean all sealing surfaces.

Installation Procedure

NOTE: The tire pressure indicator sensor is supplied assembled to a new valve stem. They must be separated before installation.

1) Remove the new bolt (3) from the tire pressure indicator sensor (2) and pull it straight off the new valve stem (1) as in Fig. 3.

2) Apply lubricant to the new valve stem.

NOTE: Valve stems and bolts are single use items.

3) Using a tire pressure valve stem mounting tool, pull the valve stem through in a direction parallel to the valve hole on the wheel.

NOTE: Ensure the flat surfaces of the tire pressure indicator sensor and the tire pressure valve stem are located correctly.

4) Rotate the valve stem by hand to align the tire pressure indicator sensor.

NOTE: Do not tighten the bolt at this stage.

5) Assemble the tire pressure indicator sensor to the valve stem and install the new bolt hand tight.

6) Insert an anti-rotation pin through the cross-drilled hole in the valve stem.

CAUTION: Use the correct fastener in the correct location. Replacement fasteners must be the correct part number for that application. Do not use paints, lubricants or corrosion inhibi-

Fig. 5. Make sure there’s a parallel gap between the valve stem (1) and the sensor (2) as shown here.

tors on fasteners, or fastener joint surfaces, unless specified. These coatings affect fastener torque and joint clamping force and may damage the fastener. Use the correct tightening sequence and specifications when installing fasteners in order to avoid damage to parts and systems. When using fasteners that are threaded directly into plastic, use extreme care not to strip the mating plastic part(s). Use hand tools only, and do not use any kind of impact or power tools. Fastener should be hand tightened, fully seated and not stripped.

7) Hold the valve stem to prevent it from rotating and tighten the bolt to 1.4 N.m (12.4 lb in).

8) Check the valve stem (1) to ensure that it is fully seated on the wheel (2) as in Fig. 4. The wheel hole edge has to be completely in the notch of the valve stem. The valve and the wheel hole have to be concentric.

9) Make sure that there is a parallel gap between the valve stem (1) and the tire pressure indicator sensor (2) as shown in Fig. 5.

NOTE: The tire pressure indicator sensor must not be in contact with the wheel.

10) When correctly positioned there will be a parallel gap between the tire pressure indicator sensor and the wheel, as seen in Fig. 6.

TORQUE SPECIFICATIONS SINGLE USE THREADED FASTENER/ COMPONENT TIGHTENING SPECIFICATIONS

NOTE: All fasteners/components listed MUST BE DISCARDED and replaced with NEW after removal.

Metric (English)

NOTE:

• Tire pressure indicator sensors are shipped in the off mode. The sensor will exit its off state when the tire is inflated.

• The tire should not have contact with the tire pressure indicator sensor during installation to prevent damage to the tire pressure indicator sensor.

11) Mount the tire to the wheel.

12) Install the tire and wheel assembly.

13) Remove the support and lower the vehicle.

14) Perform the tire pressure indicator sensor learn procedure. ■

Information for this column comes from the tire pressure monitoring systems data in ProDemandR, Mitchell 1’s auto repair information software for domestic and import vehicles. Headquartered in San Diego, Mitchell 1 has provided quality repair information solutions to the automotive industry since 1918. For more information, visit www.mitchell1.com.

• 3D Mobile Wheel Alignment System

• Fully automatic. Beam can be moved up and down

• Compatible with all car lifts including 2 post lifts and mid-rise scissor lifts

• Shortest distance of rolling run-out compensation in the industry, no need to wait during rolling

• Dual display screens

• Fully Automatic. Super easy to operate

• Leverless Center Post. Rim size up to 30"

• Equipped with Wheel lift cart and a 12" display screen that shows the underside of the wheel when changing the tire

Fig. 6. An even gap indicates correct installation.

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