Modern Tire Dealer - December 2018 by EndeavorBusinessMedia-VehicleRepairGroup

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The Industry’s Leading Publication December 2018, Volume 99, Number 12

F E AT U R E S 60

40 2018 SEMA Show/ Global Tire Expo

Tips for recruiting, a tribute to Wayne Williams and new products, too

DEPARTMENTS 4 Editorial Dealing with disruptive forces: Tire World’s Mike Caroglanian wishes he had more leverage

AAPEX 54 2018 Resources, equipment and tools for the aftermarket

6 moderntiredealer.com

News and navigation tools for MTD’s website

8 News/Views

Commercial Tire DealerTM

60 Degenhardt Tire helps growers see the value in proper inflation

Why the U.S.-China trade deal matters: Trade disruptions will cost Iowa at least $1 billion

The latest ag tires carry more weight and reduce compaction

35 Mergers and Acquisitions The power of pricing: Healthy margins improve the value of your business

36 Your Marketplace As long as retail remains in growth mode, price increases are likely to stick

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

78 Business Insight Year-end review and a look at what’s ahead: Now is a good time to get serious about planning for 2019

82 European Notebook

tire market share 70 Farm BKT and Firestone remain the top 2 replacement brands tractor ballast 71 Proper The result is improved traction and reduced slippage

76 Commercially Viable

Truck tire tariffs in Europe reduce Chinese imports by 88%

Focus on Industry 84 From Turkey to the U.S.: Oriente Tire USA will distribute Petlas consumer tires 86 More on R/T tires: A new category continues to emerge at the SEMA Show 88 TPMS Fiat 500 Series 2012-2018

93 Products 96 Ad index 97 Classified ON THE COVER: PHOTO BY GREG SMITH

Modern Tire Dealer is a proud member of:

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

82 54

Editorial

Dealing with disruptive forces TIRE WORLD’S MIKE CAROGLANIAN WISHES HE HAD MORE LEVERAGE By

Bob Ulrich

espite his business success, Mike Caroglanian has his the tires. So many of the retailers out there are matching the car concerns. As the owner of Tire World Wholesale LLC dealers’ selling price to get the tire sales. Some of the dealers and two retail stores doing business as Tire World I know even mount and balance the tires at cost to get those Auto Centers in the Metro Washington, D.C., area, he customers into their stores. faces disruptive forces sometimes beyond his control. “We’ll never be able to put up 500 stores in my life,” he said. “It’s getting harder to have the fun,” he “We can compete with anybody for service, says. “It’s not as easy, but that’s fine. You and we can out-service most of the local get up and work every day. It’s a challenge retailers. But if we can’t get customers and that’s great. It keeps you moving and in the door because the chains are able motivated and your juices flowing.” to leverage their advertising dollars and I asked Mike what his biggest concerns leverage their buying power on everything, were as an independent tire dealer. He that’s a concern.” listed two off the top of his head. I asked him if online tire selling was a “We’re most concerned about technolconcern. He said yes. And no. ogy in vehicles and being able to have the “Simple Tire, Discount Tire, Tire equipment to keep up with repairing them,” Rack, all these online sellers again have he said. “There’s so much technology. We the leverage,” said Caroglanian. “So do the have to have a computer to put a light tire manufacturers. They say they’re our bulb in on an Audi, and we don’t have that “We have 70 employees, and I worry about partners, and they want to be our partners, computer. It has to go to a car dealership. them,” says Caroglanian. “Every day we but they’re competing against us online. I have to wake up and figure out how we can One light bulb.” compete to pay everybody wages and ben- think the problem with the manufacturers Then there is the technology that hybrid efits they deserve and keep them working.” is technology is advancing so fast, they’re and autonomous vehicles are bringing into trying to get a handle on what to do.” the aftermarket. Caroglanian said he joined Goodyear’s online sales program “My concern is the manufacturers will design the vehicles as a preferred installer because the good outweighed the bad. so they can get them back, so they have a captured audience “It’s a choice, and you don’t have to do it, but we felt we had to for future business.” be on the program. We’re getting our own goodyear.com orders. Chains stores are number two on his list. And he is referring to There haven’t been that many, but we’re getting them. At least the more than the big-box stores like Sam’s Club, Costco and Walmart. customer is coming to us and not going somewhere else.” “The Pep Boys, Mavis, Discount Tire stores are all moving to He also receives help from Bridgestone Americas Inc.’s our area. I see them moving in all over the country and getting TireConnect online sales platform, which sends customers to bigger. They’re leveraging their ability to have better buying his website to set up an appointment. power. If you have three or four stores like we do, you can’t out“Tire pricing is as competitive as it’s ever been,” he said. “It’s leverage someone who can say, ‘I want to buy $5 million worth so competitive I can’t believe it could get even more competitive! of tires’ when I’m buying $500,000 worth of tires from the same But I think the manufacturers are trying to slow the competition manufacturer. They’re going to get the buying power. down online and raise the price to try to help us make some “Then they’re able to use that buying power to advertise. At money in the brick-and-mortar world.” the end of the day, the tires might sell for the same price, but Has Caroglanian ever considered selling his business? “Not our competitors either have better margins or are getting their really,” he said. name out there with the extra money they make on the tires by “I love working. I love being part of the game. I love the buying them right. customer interaction. I’m at a point where I just want to keep “It’s all about leverage. The car dealers are not only leveraging going a couple more years and re-evaluate then, depending what the technology, but also selling tires at an aggressive price. That’s the market’s doing.” their game. They want the tires that we used to sell coming to Despite the disruptions, it sounds to me like he’s still having them, and the mechanical work that comes with it. a lot of fun. ■ “We used to get the gravy, the brakes and everything because we did the tires. Now they’re getting it because they’re getting If you have any questions or comments, please email me at bob.ulrich@bobit.com.

MTD December 2018

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Becoming an outstanding commercial tire brand requires excellence in all areas, not just one. Sumitomoâ€™s product quality, application coverage and fill rate were ranked in the Top 3 by nearly 600 dealers in the last 3 Tire Review annual surveys.* Count on proven excellence, count on Sumitomo. Learn more at SumitomoTruckTires.com. *Survey conducted by Marketplace Insights on behalf of Tire Review for its 2018 Brand Study (August 2018 Sourcebook issue).

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

Midwest: Bob Marinez

Cooper Tire & Rubber Co. is partnering with DieselSellerz, stars of Discovery Channel’s hit show Diesel Brothers, to launch a new tire brand: Legion tires.

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

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

Automotive Aftermarket: Dan Thornton djtinc@gmail.com (734) 676-9135, mobile (313) 410-0945

New tire, new stores, new plant At lot of the most-read news items on www.moderntiredealer.com last month focused on new tires, new partnerships, new stores and a new tire plant. Legion brand tires and a new TBR line will soon hit the North American market. Marangoni SpA and Borrachas Vipal SA are combining forces. Point S added 16 stores in 2018, and BKT will build a tire plant in the U.S. Here are our top 10 news items:

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

Reprint Sales: Karen Runion Karen.Runion@bobit.com (330) 899-2200, ext. 2210

CUSTOMER/SUBSCRIPTION SERVICE

1. Cooper Tire partners with DieselSellerz to make Legion brand tires 2. Marangoni and Vipal agree to partner in some capacity 3. Max Finkelstein adds consumer tires from Bridgestone 4. Two distributors are merging 5. Private brand tire pioneer Al Hoffman dies at 94 6. John Aben and Prinx Chengshan are bringing a new TBR line to North America 7. ITC ruling on Chinese imports has ripple effect on retreading 8. Point S adds 16 stores in the U.S. in 2018 9. ATD update: ‘We have been working with our suppliers as normal’ 10. BKT will build a tire plant in the U.S., says Poddar

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

MTD December 2018

News/Views

Why the U.S.-China trade deal matters TRADE DISRUPTIONS WILL COST IOWA AT LEAST $1 BILLION

ire dealers have focused plenty of attention on tire tariffs in recent years, but in 2018 in farm country, it’s just as critical for dealers to know how tariffs imposed on American crops are affecting their farm customers. This issue of Modern Tire Dealer puts farmers and the ag industry front and center. Check out our cover story on page 60 to meet a three-generation tire dealer who is utilizing the latest tire technology to boost business. American farmers depend on the global market, because they grow far more than what the U.S. consumes. According to the Economic Research Service at the U.S. Department of Agriculture, the value of agricultural exports grew 150% from $56.2

aren’t waiting for the politicians; they’re already studying the effects of an agricultural trade war. The university’s Center for Agricultural and Rural Development partnered with the Chinese Academy of Agricultural Sciences to create the Center for China-U.S. Agricultural Economics and Policy. Wendong Zhang, an assistant professor of economics at Iowa State, is among the center’s staff. In November, Zhang was among the keynote speakers at an annual conference of farm managers and rural appraisers. His talk focused on China as the leading trade partner of U.S. agriculture. Zhang said China is the fastest growing market for U.S. agriculture, ahead of Canada, Mexico, Japan and South Korea,

by 9% by subsidizing land used to grow the crop. (In 2016, China imported $34.4 billion of soybeans from the U.S.) The researchers at Iowa State consider the world view, but they also study the impact of these trade issues on their home state. Here’s how the Center for Agricultural and Rural Development summarized the annual impact of this year’s trade disruptions on the Iowa economy:

©GETTYIMAGES.COM/FOTOKOSTIC

Some of America’s hold on the Chinese market comes from China’s lack of capacity to grow enough of what it needs. An average Chinese farm is 2 acres; in America, an average farm is more than 400 acres.

billion in 1995 to $140.47 billion in 2017. In that same 22-year span, U.S. exports to East Asia more than doubled, from $21.63 billion to $45.98 billion. It’s in East Asia, and specifically China, where there’s turmoil. President Donald Trump’s aggressive efforts to balance U.S. trade with China have resulted in China’s President Xi Jingping levying tariffs on American products. Among the hardest hit industries is agriculture — sorghum, soybeans, pork and ethanol have all been targeted. In early December the two countries declared a 90-day truce to their backand-forth tariff tactics to negotiate. Researchers at Iowa State University

and that the U.S. holds a “large and consistent” agricultural trade surplus with China. As the Chinese people attain more wealth, Zhang said there will be an even greater demand for more protein. The demand for fresh dairy is projected to grow by 7 million tons from 2018 to 2027. While in some regions of the world the demand will be focused on one or two products, Zhang said China’s new middle class will want “more of everything.” But that doesn’t mean the U.S. has a guaranteed market for years to come. Zhang said, “China will retaliate, diversify and find other suppliers if possible.” This year the country increased its soy production

• Overall loss to Iowa’s gross state product — at least $1 billion, based on a gross state product of $190 billion; • Average loss to Iowa’s $5.2 billion soybean industry — $545 million; • Average loss to Iowa’s $8.5 billion corn industry — $333 million; • Average loss to Iowa’s $7.1 billion pork industry — $776 million; • $105 million in lost revenues from ethanol, due to a 2% drop in ethanol prices.

And those losses don’t account for tax revenue or labor income, which could add another $477 million to $630 million to the loss column. (There’s federal money available to offset some of those losses.) The real risk is that U.S. farmers might not recover and recapture that corner of the market. In September the center’s policy brief said previous trade battles “demonstrate that once trade market share is lost, it is difficult for markets to return to the previous relationships. Exporting nations dominating markets in terms of price-setting behavior face more competition as new exporters show they’re able to meet supplies once the purview of the dominant nation. Trade flows adjust to avoid tariffs, embargoes and other trade-distorting policies. Countries outside the disputes gain market share as their products displace others that face trade barriers. “The loss of market share and the resulting loss of farm income is a major concern for U.S. agriculture given the current trade disruptions.” And the researchers said there’s no model or forecast that can project what the market would look like if the U.S. wasn’t the dominant trader. — Joy Kopcha MTD December 2018

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News/Views

VIP turns oil changes into cash for local schools

Bites Bridgestone adds capacity

Franchisee is honored Judd Shader, founder and CEO of Leeds West Groups, has received franchisee of the year honors from the International Franchise Association and from Midas. In October Leeds West opened its 100th store — a Midas location — in Aurora, Colo. Leeds West also operates Big O Tires and SpeeDee Oil Change stores.

TireGet offers financing Online tire retailer TireGet has added 6- and 12-month no-interest financing for consumers through a partnership with Synchrony Financial. TireGet says shoppers will have access to Synchrony’s 25,000 tire installer partners.

ALI elects chairman Jerome Lentz of Challenger Lifts Inc. has been elected chairman of the Automotive Lift Institute (ALI), the trade association dedicated to vehicle lift safety.

n six weeks one VIP Tires & Service store turned 607 oil changes into a $6,070 donation to local schools. When VIP Inc. opened a new store in August in West Lebanon, N.H., it launched an Oil Changes for Education initiative. Through the end of October, the store offered consumers $10 oil changes and gave 100% of the proceeds to the local schools. On Nov. 28, VIP welcomed Lebanon Paul Boundreau, district manager for VIP, School District Superintendent Joanne presents a check to Joanne Roberts, LebaRoberts and Hartford School District non Schools superintendent. The company Superintendent Thomas Debalsi to donated proceeds from $10 oil changes. present them with the rewards. The $6,070 was split evenly between the two school districts. “Finding a way to get involved in the local community is important to every VIP employee in our new West Lebanon store and to every employee in our company,” says Jeremy Weigel, store manager. “Giving back to the community is a big part of who we are as a company. This program has been wonderful and has allowed us to meet so many local residents. We want to thank everyone who visited us for a $10 oil change in support of our local schools and our children.” VIP renovated and moved into the former City Tire store in West Lebanon. The company hired seven local technicians and managers to staff the 3,200 square-foot store, which has six bays and space to store more than 1,500 tires. VIP operates 58 retail stores in Maine, New Hampshire, Vermont and Massachusetts. The company’s chairman and CEO John Quirk is Modern Tire Dealer’s 2018 Tire Dealer of the Year.

Coker Group is sold The Coker family has sold the Coker Group to the company’s CEO and president, Wade Kawasaki, along with members of the company’s leadership team and Irving Place Capital. The Coker Group consists of the Coker Tire, Wheel Vintiques, Universal Vintage Tire, Phoenix Race Tires, Specialty Wheel and Roadster Wire Wheel brands.

EXCEED is refreshed Yokohama Tire Corp. has redesigned its Excellence Through Certification & Education (EXCEED) online dealer training program. The interactive program features updated content and streamlined access to product modules.

Online store is renamed Wilcox Supply Inc. has renamed and rebranded its online store which sells tire supplies and tire equipment to tire retailers. The online business will be known as Tire Supply Network. The online store launched earlier this year under a different name — Discount Tire Supply.

Max Finkelstein adds consumer tires from Bridgestone

holesale tire distributor Max Finkelstein Inc. has added Bridgestone, Firestone and Fuzion to its stable of consumer tire brands. Bridgestone Americas Tire Operations LLC (BATO) began distributing passenger and light truck tires to Max Finkelstein on Dec. 1, 2018. “The addition of Max Finkelstein as an authorized Bridgestone dealer will strengthen our distribution footprint in the Northeast and Mid-Atlantic regions of the U.S., and enhance our efforts to get the right tire to the right place with speed and efficiency,” says Brad Booth, BATO’s vice president of consumer replacement tire sales in the U.S. and Canada. “We are honored to partner with yet another one of the most respected manufacturers in our industry,” says

Ira Silver, Max Finkelstein’s CEO and president. “The addition of Bridgestone’s premier products enhances our ability to compete more effectively in the market by providing a broader assortment to our customers.” Max Finkelstein will continue its 95-year-old relationship with Goodyear, it’s other Tier 1 tire brand. The other consumer tire brands the company wholesales are Dunlop and Kelly (through Goodyear Tire & Rubber Co.); Pirelli; Kumho; Kenda; Falken and Ohtsu; and Presa (a Tier 4 tire produced by Maxxis International). Except for Presa, the company buys its brands direct from the manufacturer. On the commercial side of the business, Max Finkelstein offers Goodyear, Dunlop, Kelly and a mix of Tier 2 and Tier 3 brands. MTD December 2018

PHOTO: VIP

Bridgestone Americas Inc. plans to break ground on a three-year, $40 million expansion project at its Warren County, Tenn., truck and bus radial (TBR) tire manufacturing plant by the end of 2018.

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News/Views

Pep Boys joins Amazon

Founder of top online tire sales site in the U.K. is entering the U.S. market

Pep Boys — Manny, Moe & Jack, part of the Icahn Automotive Group LLC, is offering installation services nationwide for tires bought on the Amazon website.

Bites

Canadian wholesalers merge Groupe Touchette Inc. is acquiring Atlas Tire Wholesale Inc. The Canadian wholesalers expect their combined sales to be between $550 million and $650 million.

SmartWay search tool added Simple Tire LLC has added the ability to sort and filter search results based on tires that have earned the SmartWay label to its online platform.

TPMS is embedded Continental Tire the Americas LLC has released a tire line, the 315/80R22.5 Conti Coach HA3, with an embedded tire pressure management system (TPMS) sensor installed from the factory.

Falken earns fitments Falken Tire Corp.’s Sincera SN250A A/S will be original equipment on the 2019 Altima in the U.S. and Canada. The Ziex ZE001 A/S will be OE on the 2019 Rogue SV.

Nokian builds R&D center

roupe Michelin called Mike Welch’s online tire marketplace the best in the U.K. And then the tire maker bought it for 50 million pounds — $76.2 million. Welch is turning his attention to the U.S. market and plans to launch Tirescanner, an online portal for brick-and-mortar tire dealers. The founder of Blackcircles.com is investing $1 million of his own money in the venture to create Tirescanner.com, which will have its headquarters in Florida. He plans to launch the site in 2019 with more than 60,000 tire sizes, 60 retailers and “a handful of key manufacturer partners.” Tirescanner will offer both passenger and commercial tires. Consumers will purchase tires via the site’s partner retail dealers. Blackcircles’ online conversion reached 8% at its peak, the business had a net promoter score (NPS) of over 90 and year-on-year growth of over 50% in the years before he sold the business to Michelin in 2015. “Tirescanner is a platform that celebrates and showcases the very best of the brick-and-mortar retail stores the United States has to offer,” says Welch. “We have many thousands of tire retail

Nokian Tyres plc is building a research and development center focused on heavy commercial tires at its headquarters in Nokia, Finland.

outlets in the U.S., and unlike in Europe it is impossible for customers to check all of what is available to them. Tirescanner addresses that customer problem head on. Our goal is deliver an easy-to-use whole-of-market platform for customers and a low-cost high-performance solution for retailers to ensure they protect and grow their share of the market in the face of growing online competition.” He points to Modern Tire Dealer statistics for proof of a growing online tire sales component in the industry. In 2016 6% of replacement consumer tires were sold online in the U.S. The figure increased to 7% in 2017. And Welch says “in 2018 we have seen further market moves indicating the importance of online as a channel, not least Amazon’s continued expansion into the market and Dealer Tire’s purchase of pure player Simple Tire LLC.” (Welch joined Simple Tire’s board in 2017.) “Great online is not about driving down price, any fool can do that; it is about reinforcing and showcasing to customers the value propositions of our partners,” says Welch. “We have created a real strength in numbers opportunity for the traditional retailers.”

Cooper opens its largest distribution center in the U.S.

Omnicraft on Ford website Ford Motor Co. has added Omnicraft parts, which target non-Ford and non-Lincoln vehicle repairs, to its FordParts.com website.

Dave Crawford has rejoined The Hybrid Shop as the company’s president and chief operating officer. The new vice president of sales is Carey Mellor, who will lead a team focused on growing the franchised dealers nationwide.

Michelin has scholarships Michelin North America Inc. is accepting applications for the 2019-2020 scholarship it offers to students associated with the Tire Industry Association (TIA).

Cooper is leasing the warehouse in Byhalia, Miss., which employs about 100 people.

ooper Tire & Rubber Co. has opened a 1 million-square-foot warehouse in Byhalia, Miss., which is its largest distribution center in the country. The company says the warehouse is centrally located from its three U.S. tire manufacturing plants in Findlay, Ohio, Texarkana, Ark., and Tupelo, Miss. Its location will allow the company to consolidate and distribute products directly to customers and also supply its regional distribution centers. The site has the capacity to add another 400,000 square feet. Cooper also has six regional distribution centers, three plant manufacturing warehouses and a mixing warehouse. MTD December 2018

PHOTO: COOPER

Hybrid Shop has new leaders

ADVERTORIAL

JACK WILLIAMS TIRE & AUTO SERVICE CENTERS

90 Years in Business –Goodyear Fits With How We Operate Jack Williams Tire & Auto Service Centers is getting ready to celebrate its 90th year in business in 2019. And, according to Chairman Bill Williams, the best is yet to come. Jack Williams Tire has 36 retail tire and auto service locations, throughout Pennsylvania with another opening in the spring. The company also operates a large wholesale business with 12 warehouse locations covering a five-state area. Jack Williams Tire is family owned and operated with Bill Williams (MTD 2006 Dealer of the Year) serving as Chairman and third generation family members Scott, Tracey and Jason heavily involved in daily operations. “We’ve always prided ourselves on the Williams Way of doing things,” says Bill Williams. “From our dedicated employees to the way we treat our customers, to our efforts to always be involved in the community—it all comes back to doing things the right way.” The company used Pennsylvania’s highly recognizable keystone emblem to create the new logo featuring the motto, “The Right Way, That’s the Williams Way.” Bill says the message hits home with the consumer. “We have the right tire at the right price and do it the right way,” he said. Jack Williams Tire has been selling Goodyear tires since the company’s founding in 1929 and became a direct dealer in 1974. As a young boy, Williams remembers seeing very old photos of the dealership with Goodyear signs in its stores. “It’s just natural that we would now be selling Goodyear tires and connecting our company with the most highly recognizable brand out there. You simply can’t beat what the Goodyear blimp and NASCAR sponsorship bring to the table for us,” says Bill.

“Goodyear is a highly innovative partner for us. They want us to be Jack Williams Tire and know that as we grow, their sales with us will grow, too,” says Bill. “They listen to us.” Bill says that his company has been able to utilize the Goodyear blimp with its last visit producing “the most successful social media event we’ve ever had.” When someone saw the blimp and posted a picture of it on their Facebook page, they became eligible to win a free set of tires and be entered in a contest to win a blimp ride. “The response exceeded our wildest expectations. It shows the power that the Goodyear blimp has as a marketing tool,” says Bill. As a direct Goodyear retailer, Jack Williams Tire enjoys the benefits of strong support programs, such as national promotions and rebate programs, not to mention a complete product portfolio, according to Bill. “Goodyear is well-known as an American brand, with a reputation for quality. It just fits with how we operate,” says Bill. ■

News/Views

New outlets bring Tire Discounters to 112 stores

Bites ASE honors techs

Pirelli will supply FIA Pirelli & Cie SpA will remain as “Global Tire Partner” of the FIA (Federation Internationale de l’Automobile) Formula One World Championship through 2023 after renewing its current contract, which lasts until the end of the 2019 season

CEAT reaches milestone After one year of operation, the new CEAT Specialty Tyres Ltd. ag radial plant in India has released 100 unique tire sizes. CEAT (Cavi Elettrici e Affini Torino Ltd.) is part of Indian industrial company RPG Group.

McGovern is honored The Auto Care Association’s Import Vehicle Community has honored William “Mac” McGovern, who retired from KYB Americas Corp. as director of marketing and training, with its 2018 Lifetime Industry Achievement Award.

s of Jan. 1, 2019, The other two stores are there will be 112 located in existing markets: Tire Discounters Chattanooga, Tenn., and outlets in six states. The Huntsville, Ala. latest four outlets will be Tire Discounters was opened by the end of the founded by Chip Wood year, says Tire Discountin 1976 and is still familyers Inc. President Jamie owned and operated. Wood Ward. remains the sole owner and “ This year we’ve company chairman, but grown through partnerin recent years has begun ships, like our stores in a smooth transition to Dalton, Ga., and organithe second generation of cally with new customers Tire Discounters President leadership. Jamie Ward says the comand new stores in our pany grew organically and Wa r d , a v a l u e d existing markets. Our through partnerships in 2018. employee and protégé entry into Knoxville for more than 20 years, marks an exciting end to 2018.” is now the driving force in the company Two of the four new stores will open day-to-day. Additionally, Steven Wood, in Knoxville, Tenn. The stores in Oak Chip’s eldest son, has worked in the Ridge and Cedar Bluff mark the company’s company for more than five years and long-awaited entry into the metropolitan serves on the leadership team. Steven’s Knoxville market. sister and brother, Anna and Evan Wood, Ward adds Tire Discounters is planning are also learning the business from the to open more stores in Knoxville in 2019. ground up. PHOTO: TIRE DISCOUNTERS

The National Institute for Automotive Service Excellence (ASE) recently honored 52 technicians for earning the top scores on the ASE certification tests.

Nexen scores Jetta fitment The N’Priz AH8 from Nexen Tire Corp. is the original equipment tire for the 2019 Volkswagen Jetta.

ITC ruling on Chinese imports has ripple effect on retreading

Apollo signs cricket icon India-based Apollo Tyres Ltd. has signed retired cricket player Sachin Tendulkar as its brand ambassador for a period of five years.

Halldane joins distributor Oriente Tire U.S.A. LLC named David Halldane its first U.S. sales director for Petlas consumer tires.

Valvoline is top partner The Aftermarket Auto Parts Alliance Inc. has named Valvoline LLC its 2018 Channel Partner of the Year.

Hometown praises Hankook Montgomery County officials marked the first year of operations of Hankook Tire America Corp.’s Tennessee tire plant with a community proclamation.

he last chapter on whether or not truck and bus tires imported from China have negatively impacted domestic tire manufacturers and retreaders has not been written. On Nov. 1, 2018, the U.S. Court of International Trade (CIT) remanded the negative U.S. Court of International Trade (ITC) injury determination on truck and bus tires from China. This means ITC must reconsider a February 2017 CIT ruling that the domestic tire industry was neither materially injured nor threatened with material injury by reason of imports, according to Retread Instead, a coalition of retread industry supporters created to enhance the awareness of the environmental and economic benefits of retreading throughout North America. The ITC must file its remand redetermination on or before Jan. 4, 2019. Retread Instead, which launched in July 2017 and is led by Marangoni Tread North America Inc., supports imposing tariffs, antidumping duties and countervailing duties on commercial Chinese truck and bus tires that are imported into the United States “because China is a ‘non-market economy’ that dumps low quality non-retreadable truck tires into the U.S below fair market value thus undermining the retread industry.” The coalition says retreading commercial truck tires in the U.S. is a $3 billion industry. “There are well over 100,000 U.S. jobs in retreading and related industries that are being threatened by the importation of non-retreadable truck and bus tires from China that are sold at below fair market value.” MTD December 2018

News/Views

Continental opens training center in Mississippi

Dates Jan. 16, 2019

Jan. 18-19 Mid-America Tire Dealers Association Trade Show Expo, Sporting KC Brewhouse, Kansas City, Kan. (785) 286-1110 www.matda.org

Jan. 19-26 Ontario Tire Dealers Association Winter Conference, Unico Riviera Maya, Quintana Roo, Mexico (888) 207-9059 www.otda.com

Jan. 28-31 Heavy Duty Aftermarket Week, The Mirage Hotel & Convention Center, Las Vegas, Nev. (708) 226-1300 www.hdaw.org

ontinental Tire the Americas LLC has completed the first leg of its journey in opening a $1.45 billion facility in Mississippi. The company has opened an employee training center on the site of its future tire plant. The training center is equipped with classrooms, computer labs and technical equipment that will be used for job interviews, new employee orientation, and training. The center will be an important part of Continental’s recruitment and employee retention efforts at the company’s commercial tire plant, which is to begin production in 2020. Additionally, the center will be used by Continental’s sales Continental held a grand opening event at its new team and for special events for training center in Mississippi on Nov. 8, 2018. Continental customers. Paul Williams, executive vice president of truck tires in the Americas, said, “Continental’s commercial vehicle tire business throughout the Americas region has been growing significantly over the past years as we have continued to introduce leading products, technology, services, and solutions designed specifically for our trucking and transportation fleet customers.”

Feb. 14-17 Automechanika New Delhi, Pragati Maidan, New Delhi, India www.acma-automechanika.in

Feb. 20-23 Tire Industry Association Off-the-Road Tire Conference, Saddlebrook Resort, Tampa, Fla. (800) 876-8372 www.tireindustry.org

Feb. 21-22 North Central Tire Dealers & Suppliers Association Mid-Winter Conference & Trade Show, Treasure Island Resort & Casino, Red Wing, Minn. (952) 544-6805 www.northcentraltiredealers.com

Feb. 21-23 Mobile Air Conditioning Society Training Event & Trade Show, Anaheim Marriott, Anaheim, Calif. (215) 631-7017 www.macsw.org

Feb. 28 – March 2 Automechanika Ho Chi Minh City, Saigon Exhibition and Convention Center, Vietnam +852 2802 7728 www.messefrankfurt.com

Tire companies hike prices

pollo Tyres Ltd., Pirelli Tire North America Inc., Continental Tire the Americas LLC and Toyo Tire U.S.A. Corp. will raise prices on passenger and light truck tires in January 2019. Apollo will increase prices on its Vredestein consumer tires in North America in the range of 6%. Apollo says the increases, effective Jan. 1, are “in line with the rising raw material and logistic costs.” Also on Jan. 1, Pirelli will increase the price of its passenger and light truck tires in the United States on average 6%, with variances by tire line and size. Pirelli says the increases are “due to the higher price of raw materials and growing investment in the development of new technologically advanced products.” Toyo will raise dealer base prices on select passenger, light truck and commercial truck tires on Jan. 1, 2019. In-line adjustments will be made on the following products: Extensa A/S, Extensa HP II, Proxes 4 Plus, and Versado Noir for passenger cars; and the Open Country Q/T, Open Country A/T II, Open Country R/T, and Open Country M/T for light trucks and SUVs. Commercial truck tire prices will increase by 2%, except for the Toyo M320Z on/off-road tire. “Market dynamics and government actions have made it necessary to adjust our prices,” says Randy Gaetz, senior vice president, sales, Toyo Tire U.S.A. Corp. Prices increases of Continental- and General-brand passenger and light truck tires will vary depending on tire line and sizes. The price increases will be effective Jan. 7, 2019, in the U.S. Continental says the adjustment is in response to “the continued escalation of raw materials, energy, and logistics costs associated with the production and distribution of these products.” Sentury Tire USA Inc. and Michelin North America Inc. raised consumer tire prices in December. Goodyear Tire & Rubber Co. increased the prices of its commercial tires and retreads, and some commercial services, on Dec. 1, 2018.

MTD December 2018

PHOTO: CONTINENTAL

California Tire Dealers Association New Year Luncheon, Geezers, Santa Fe Springs, Calif. (650) 357-0600 www.catiredealers.com

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News/Views

Dates

Private brand tire pioneer Al Hoffman dies at 94

March 5-8

March 8-9 North Carolina Tire Dealers Association Expo, Raleigh Convention Center/Marriott City Center, Raleigh, N.C. (877) 784-0111 www.nctda.com

March 18-21 American Trucking Associations TMC Annual Meeting & Transportation Technology Exhibition, Georgia World Congress Center, Atlanta, Ga. (703) 838-1700 www.trucking.org

March 21-23 Automechanika Kuala Lumpur, Kuala Lumpur Convention Centre, Kuala Lumpur, Malaysia automechanika-kl.com

March 27-29 Automechanika Astana, Kazakhstan International Automotive Expo, Kazahkstan www.automechanika.kz

March 28-30 Mid-America Trucking Show, Kentucky Exposition Center, Louisville, Ky. (502) 899-3892 www.truckingshow.com

March 29-30 New England Tire & Service Association Trade Show & Convention, Foxwoods Resort and Casino, Mashantucket, Conn. (855) 638-7248 www.netsa.org

lbert Hoffman, co-founder of the Jetzon Tire and Rubber Co. Inc. and a pioneer in the private brand tire segment, died on Dec. 3, 2018, at his home in Boynton Beach, Fla., after battling cancer. He was 94. Hoffman served in the army from 1942-1945, much of that time in Europe, and received a Bronze Star at age 19. His son Marc Hoffman, former president of Jetzon Tire, said he and his fellow soldiers liberated one of the concentration camps. He also received France’s Legion of Honor Award, as well as the Certificate of Normandy Landing signed by former President Francois Hollande for his military service. Hoffman started in the tire business working after school for his father in the late 1930s in the family retread and used tire business. After being discharged from the service, he joined Hoffman Tire Co. full time. In 1964, he co-founded Jetzon Tire, his first venture into the new tire business. In 1965, he formed Jetzon International Corp., the export arm of Jetzon Tire. Al Hoffman (pictured here in 1982) was Expansion into the private brand inducted into the first class of the Tire business continued, with Doral in Industry Hall of Fame in 1985. 1969, Telstar in 1970 and Laramie in 1971. Also in 1971, he founded International Tire Warehouses. He was the first tire dealer to serve two terms as president of the Delaware Valley Tire Dealers’ Association, and was a director of the National Tire Dealers & Retreaders Association (NTDRA) for five years. In addition, he was instrumental in the formation of the Private Brand Tire Group, an affiliate of the NTDRA, and served as the group’s first chairman. Hoffman was one of eight inductees into the first class of the Tire Industry Hall of Fame in 1985. He was inducted with fellow tire industry pioneers Roy Carver, Harvey S. Firestone, James Harlan Heafner, J.P. Hennessy Sr., Winston “Bill” Marsh, William Francis O’Neil and Frank Seiberling. “My dad, ‘Boney’ Jones, who passed in 2005, started buying off the Hoffman family in 1959, which started a friendship with all the Hoffmans that still goes on today,” says Alan Jones, co-owner of Tire City Inc. in Bristol, Pa. “Albert Hoffman helped everyone out from the very beginning in ways that no one would do today.” Hoffman was preceded in death by his wife, Dorothy, and is survived by four sons.

PHOTO: MTD ARCHIVE

The Work Truck Show & The Green Truck Summit, Indiana Convention Center, Indianapolis, Ind. (800) 441-6832 www.worktruckshow.com

Ken Harris Sr., Harris Tire founder, dies at 87

April 4-7 Automechanika Istanbul, Tuyap Fair, Convention and Congress Center, Istanbul, Turkey www.automechanika-istanbul.tr

April 10-12 Clemson University Global Tire Industry Conference, Sonesta Resort, Hilton Head Island, S.C. (864) 656-2200 www.clemsontireconference.com

enneth L. Harris Sr., founder of Harris Tire Co. in Troy, Ala., died Nov. 2, 2018. He was 87. Harris was born Jan. 15, 1931. Armed with experience and knowledge gained from working in the oil industry, he opened his namesake wholesale tire dealership in 1966. The company has since added wholesale distribution centers in Huntsville, Ala.; Ocala, Fla.; Jackson, Miss.; Atlanta; and Charlotte. The six warehouses service tire dealers in nine Southeast states. The third-generation family business sells Cooper, Duro, Galaxy, Multi-Mile (plus other TBC Corp. brands), PrimeX and Sumitomo tires.

MTD December 2018

Driving On To Prepare You For the Road Ahead

or most of us, our car or truck represents our second largest investment after our home. So taking good care of it and protecting that investment is important.

But we must admit, understanding exactly what preventive maintenance should be done and when it should be done is not always clear. Thatâ€™s why finding a good, reliable service professional like the one you are visiting today is vital. It is important to ask questions. Knowledge is power, and your local pro can break it all down for you and clear up the confusion. Our goal is to inform you about proper vehicle maintenance and make sure your vehicle is safe to drive.

CONTENTS

We have devoted this issue 100% to preventive maintenance. Feel free to take a copy and keep for future reference. Be safe Driving On!

How to Save Money and the Planet

Page 3

8 Auto Maintenance Tips for New Drivers

Page 4

The Top 5 Reasons Your Car is Making that Squealing Noise

Page 6

Do You Know Your Oil?

Page 8

When to Replace Your Windshield Wipers

Page 10

Maintain to Retain! What You Should Know About Vehicle Warranties

Page 12

Checking the Serpentine Belt

Page 14

Transmission Service: The Whole Package

Page 15

Should You Be Following the Normal or Severe Lubricant Service Schedule?

Page 16

How to Save Money and the Planet… ONE MILE AT A TIME large SUV in terms of gas mileage.2 So, speeding down the road or weaving through traffic is not only unsafe but will certainly cost you and the atmosphere in the long run. ost everyone who is looking to buy a new car or maintaining a used one is concerned with fuel economy. When measured in gallons, it is a function of how far one gallon of fuel will get you down the road. Typically stated in terms of city miles, highway miles, and combined miles, the ratio of fuel to miles is a critical number for most drivers in today’s economy.

Green is Good There are other reasons to care about gas mileage, in addition to the impact of what you pay at the pump. According to the Department of Energy, buying certain types of vehicles, electric or hybrid, could mean big tax breaks, but buying gas guzzlers means a potential penalty for manufacturers, which is no doubt passed down to buyers.1 The motivation behind these governmental penalties and incentives is a cleaner environment. So, let’s look at some important ways that you can increase that mpg and do your part for your pocketbook and the planet.

■ Slow Down and Calm Down: A Consumer Reports study revealed that each acceleration, like those common in aggressive driving, boosts gas usage. Also, increasing your speed from 55 mph to 75 mph turns your compact car into a

■ Lose Weight: Avoid carrying unnecessary extra weight inside or outside the car. The DOE 2018 report states that an extra 100 pounds can decrease fuel economy by about 1%. No, we’re not talking about your 12-year-old here. He can certainly come along. The idea is to remove any items that are not essential for the trip you are making. The few minutes you invest in cleaning out your car can yield big payoffs in fuel efficiency.

■ Love Your Vehicle: Understanding your vehicle is the first step to caring for it. Read your owner’s manual and commit to proper and timely maintenance to make the most of your fuel and keep your car running smoothly. The Car Care Council suggests checking your tire pressure regularly, using the right motor oil, keeping filters clean and functioning, staying on top of engine performance issues, and immediately fixing anything that breaks.3

—3—

[1] https://www.fueleconomy.gov/feg/pdfs/guides/ FEG2018.pdf [2]https://www.consumerreports.org/fuel-economyefficiency/how-to-get-the-best-fuel-economy-now/ [3] http://media.carcare.org/2016-02-09-Easy-Steps-toBetter-Gas-Mileage

Auto Maintenance Tips for New Drivers

btaining a driver’s license is a rite of passage in our culture, and it marks an exciting transition to independence and opens a world of choices. Like most milestones in life, this one comes with new responsibilities, including driving safely, understanding the rules of the road, and a solid car maintenance plan. Here are the top eight basic car maintenance habits for new drivers to stay safe and happy on the road.

✔ Read the Owner’s Manual Okay, reading it front to back would be boring, but skim it and read the main sections, returning to it often for a brush-up or any time something seems “off” when you are driving.

✔ Keep an Eye on the Gauges This generation of cars has the most useful information on the dashboard than ever before, so it’s important to use that knowledge to know your car and its needs.

✔ Take the Gauges Seriously While this should be obvious, even experienced drivers occasionally push their luck when the gas gauge eases over to the “E.” If a light comes on and you do not know what

it means, check the owner’s manual. If the Check Engine Light or its equivalent lights up, pull over as soon as possible and have your car checked out.

—4—

✔ Change the Oil

✔ Travel Prepared

This is arguably the most important basic maintenance item. In the past, it was common to have your vehicle’s oil changed every 3,000 miles or every three months. However, advances in engines and oils have made this rule obsolete. Today, many new car

Keeping a crate of essentials is a great idea for any driver, but especially those driving older model cars. The crate should at least contain all the ﬂuids specific to your car, some paper towels, gloves, a funnel, ﬂashlight, and jumper cables.

✔ Check Tires and Lights

manufacturers are recommending longer intervals of 7,500 miles or more between oil changes. Check your owner’s manual for the recommended service interval for your vehicle. When you have your oil changed, keep an eye on the reminder sticker, and don’t delay going in for service.

✔ Monitor Other Fluids Educate yourself about where to check each important ﬂuid for your specific car. You should

be able to locate the oil dipstick, coolant reservoir, power steering reservoir and brake ﬂuid reservoir, and you should follow a regular schedule of checking these ﬂuids even if there are no signs of problems.

It’s important to also check the air pressure in your tires at the same time you check your ﬂuids. You should also check the tire’s tread. A run through on all the lights is critical too because a defective light or tire blowout on the road is a threat to everyone’s safety.

✔ Be Battery Proactive Awareness of your battery’s strength could mean avoiding getting stranded far from home or not even being able to leave home. You should have your battery charge level checked with every oil change. Ask for this service and be vigilant about it. This list is a great starting point for new drivers. However, it’s important to recognize that there are many other responsibilities involved in car maintenance, and new drivers should educate themselves about their car’s needs as diligently as they educated themselves about where the brake and gas pedals were!

—5—

The Top

ave you ever turned the key, revved up the engine, and backed out of the driveway, excited to hit the town for fun or even just to get some of those errands run, only to hear that dreaded and embarrassing squeal come from under the hood? You know, the one that makes your neighbors turn their heads, and not in a good way? You’re not alone—we’ve all been there. Here are the top five reasons for that squealing or chirping noise, and what you can do about it!

5 Reasons Yo

occurs, resulting in slippage, premature belt wear and unwanted noises such as belt squeal. While some tensioner pulleys can be replaced, to avoid injury, never try to disassemble one of the automatic tensioners. Call in a mechanic, who can safely take care of this for you.

PULLEY ALIGNMENT Improper belt alignment decreases the life of the belt by up to 50%. A misaligned pulley creates belt noise due to fraying, uneven wear, overheating, and

AUTOMATIC TENSIONERS Most engines are fitted with springloaded belt tensioners whose job is to help the belt maintain proper tension through its life cycle and to reduce vibrations and belt noise. Over time, however, the tensioners wear, and improper tension glazing of the belt. What’s more, belt temperatures increase dramatically in relation to the degrees of misalignment. To ensure the proper alignment on installation, make sure you use the proper tools or leave the work for a mechanic you can trust.

CHEMICAL CONTAMINATION The presence of ﬂuids, such as antifreeze, engine oil, or power steering —6—

Your Car Is Making That Squealing Noise ﬂuid on a belt requires a belt replacement by you or your car care professional. The ﬂuids cause softening and separation of the belt construction and attract debris, which erodes the pulley surfaces, causes the belt to fray, and thus makes a lot of unwanted noise. This could even cause the belt to jump off.

edges are shredded, and fiber cords protrude from the belt, this can damage other components, such as the A/C compressor or other expensive parts. The fraying cords can cause personal injury, so watch your fingers and hands, or hire someone in the know to keep your engine noise down, and you and your car safe.

BELT CRACKING When a vehicle has been in service too long, cracking can occur and signal conditions such as pulley problems, too

much heat, or tension, which can lead to belt noise or car screeching. Be sure to have a mechanic check this one out.

FRAYED EDGES Frayed edges on a belt are an indication of a rough pulley surface, pulley misalignment, or shaft damage. As the

The life of a belt is a stressful one. Exposed to tremendous pressure every day, it is positioned in a hostile environment of intense engine heat and is easily subject to chemical contamination and misalignment. Make sure a trained and trusted professional is always part of your car care regimen and only attempt the maintenance you feel capable of performing safely.

—7—

Do You K What to Look for When Y

When it comes to oil for your vehicle, there’s no one-sizeﬁts-all solution. It’s important to understand all the symbols and acronyms on product labels to ensure you’re choosing the optimal oil for your speciﬁc needs.

THE “DONUT”

API’S CERTIFICATION MARK & SERVICE SYMBOL This identifies quality motor oils for gasoline and diesel-powered vehicles. Oils displaying these marks meet performance requirements set by U.S. and international vehicle and engine manufacturers and the lubricant industry.

The API “Donut” seal provides performance levels, viscosity grade, and savings from fuel conservation. It is typically shown on the back of the oil container.

THE “STARBURST” The American Petroleum Institute’s “Starburst”

RESOURCE CONSERVING & ENERGY CONSERVING

means that the oil meets the gold standard of ILSAC, the International Lubricant Specification Advisory Committee. ILSAC establishes quality specs for the world’s lubricant standards – a joint effort of U.S. and Japanese automobile manufacturers. —8—

These designations apply to oil intended for gasoline engine cars, vans, and light trucks. Widespread use of “Energy or Resource Conserving” oils may result in an overall savings of fuel in the vehicle as a whole.

u Know Your Oil?

When You Choose Your Oil

PERFORMANCE LEVEL

Oils designed for diesel engine service might also meet gasoline service. For these oils the designation is “C” category first, followed by the “S” category. “C” category oils have been formulated primarily for diesel engines.

ERVICE C IS

4 K-

Motor oils designed for cars, vans and light trucks with API’s “S” (Service) categories. Motor oils designed for heavy-duty trucks and vehicles with diesel engines fall under API’s “C” (Commercial) categories.

MULTIPLE PERFORMANCE LEVELS

SAE 10W-30 VISCOSITY GRADE Viscosity is a measure of an oil’s ﬂow characteristics, or thickness at certain temperatures. The temperature requirements set for oil by the Society of Automotive Engineers (SAE) is 0 degrees F (low) and 210 degrees F (high). On an oil container, the low temperature viscosity (e.g. 5W) indicates how quickly an engine will crank in winter and how well the oil will ﬂow to lubricate critical engine parts at low temperatures. The higher temperature viscosity (e.g. 30) provides thickness, or body, for good lubrication at operating or higher temperatures.

CK-4 DESIGNATION Engine manufacturers are expected to recommend API CK-4 oils for on-highway and non-road diesel engines in use today in heavy-duty equipment. CK-4 oils have improved oxidation resistance, shear stability, and aeration control compared with CJ-4 products. CK-4 oils are backward compatible with CJ-4, CI-4 with CI-4 PLUS, CI-4 and CH-4 oils. Still, you should check with the engine manufacturer before moving up to CK-4. Remember to ask about your oil change interval when using CK-4.

Your vehicle deserves a high-quality oil. —9—

When to Replace Your W Are your wiper blades squeaking, or making a lot of noise when passing over your windshield? Skipping and not making contact with the glass? Leaving streaks on the windshield? Splitting or breaking? If so, now is the right time to have them replaced with new wipers.

â€”10â€”

ur Windshield Wipers There are many styles of wiper blades on the market today and knowing which blade is correct for your vehicle is crucial.

Conventional Wiper Blades

Hybrid Style Blades

Conventional (also known as frame-style) are the most common, especially in older vehicles, and are the most affordable. As the name implies, these blades have a frame that holds the blade to the windshield using several pressure points.

Hybrid wiper blades are the most popular style installed by manufacturers on newer vehicles today. As the name implies, hybrid wipers combine features from both conventional and beam blades.

Beam or Aero Style Blades Beam-style or aero wipers are frameless and have a rubber wiping edge that has a long singlepiece spring across the entire length of the blade. This means equal pressure of the blade on the windshield to ensure a streakfree wipe. They also adhere to the windshield better, especially at higher speeds.

It has a sleek, aerodynamic design with a graphite coated rubber squeegee and a hard original equipment style spoiler. The result: a long-lasting wiper that adheres firmly against the windshield for streakfree performance, and a blade that does not rust.

—11—

IMPORTANT! To minimize wiper problems, be sure to always replace your wipers with the same style blade that the manufacturer designed for the wiping system. You can ﬁnd this information in your vehicle owner’s manual.

Maintain to Retain! WHAT YOU SHOULD KNOW ABOUT VEHICLE WARRANTIES

ars are a tremendous investment. Not only do they provide transportation, but they also symbolize freedom to go wherever the road takes you. When an owner purchases a car, it typically comes with a warranty based on mileage and months. The purpose of the warranty is to protect the consumer—a guarantee that a manufacturer will stand behind their product or repair specific defects or malfunctions during a pre-defined period.

4. Regularly scheduled maintenance must be performed in accordance with the manufacturer’s recommendations and requirements.

CONSUMERS BE AWARE

1. Read up on their warranty; understand coverage details.

Should a car experience some covered failure during the warranty program’s timeframe, be aware:

5. Maintenance schedules vary by vehicle make, model and year; the best source of information about routine scheduled maintenance is the vehicle’s owner’s manual.

GET THE MOST FROM YOUR WARRANTY 2. Be aware of their warranty period; have problems checked before warranty expiration. 3. Service vehicles at regular intervals; follow the manufacturer’s recommended service schedule.

1. Per the Magnuson-Moss Warranty Act, it is illegal for a dealer to deny new car warranty coverage should the owner make repairs themselves or employ a non-dealer, independent aftermarket repair shop to perform repairs or routine maintenance, or when aftermarket or recycled parts are used. 2. The manufacturer or dealer can, however, require consumers to use select repair facilities if the repair services are provided to consumers free of charge under the warranty, or use select parts if those parts are provided to consumers free of charge under the warranty. 3. A repair may not be covered if the owner or other service technician replaced a part improperly or used a defective part that causes damage inadvertently; however, the dealer must be able to provide proof that the damage was caused by the improper repair or defunct part.

4. Keep all service records and receipts to ensure warranty claim coverage, regardless of who performs the service, including oil changes, tire rotations, belt replacement, new brake pads, and inspections. 5. Pursue all avenues when a claim is denied unfairly (dealer supervisor, state Attorney General, local consumer protection office, FTC). Of course, Murphy’s law dictates that it’s not until after the specific mileage or timeframe has been reached that something will typically go wrong mechanically. In or out of warranty, when the inevitable happens, wouldn’t it be grand to know that the necessary service and parts a service technician used to make repairs would include a warranty as well?

THE MIGHTY MISSION The mission of Mighty, the nation’s premier provider of the highest quality auto parts and services, is to support professional automotive service providers and their customers. To further this purpose, they offer two unique warranty programs to ensure the vehicles their partners service run smoothly and stay on the road.

—12—

VS7® LIFETIME PROTECTION PROGRAM This Program not only assures that you are receiving top quality products, but if vehicles are maintained per the Program’s terms, you know that repairs are insured should a covered part fail during the lifetime of the vehicle.

Program Provisions: 1. The Program initiates when service is performed on a vehicle using one of the required Mighty VS7 products. 2. The same service must be repeated within a specific mileage or time interval: Engine: Oil changes not to exceed vehicle manufacturer’s recommendations. Brakes: Every 24 months or 30,000 miles Cooling: Every 24 months or 30,000 miles Differential: Every 24 months or 30,000 miles

3. Coverage amounts are based upon the vehicle’s mileage at the initial service date. Once the Program commences, there is a 60 day or 750 mile waiting period along with a 500 mile grace period on each plan. 0–50,000 Miles:

$4,000 or $6,000

50,001–100,000 Miles:

$2,000 or $3,000

The higher coverage amounts are only applicable for the engine system when all oil changes are performed with either Mighty Engine Guard® full-synthetic motor oil or Royal Purple® full synthetic motor oil along with the Mighty MAX oil filter.

NATIONWIDE REPAIR WARRANTY

This is a no cost, hassle-free 24 month/24,000 mile warranty that is honored at over 40,000 automotive shops across the U.S. and Canada.

Program Provisions: ✔ 24 month/24,000 mile repair warranty ✔ Parts and labor included ✔ Repairing facility is paid at their posted labor rate ✔ Payment is for standard book time ✔ Repairing dealer is paid immediately by the Warranty Program via credit card ✔ The original dealer is not charged but is notified a warranty claim was made

Covered Repairs:

Fuel: Every 15,000 miles

Transmission: Every 24 months or 30,000 miles

Sure

✔ Air conditioning, heating, climate control systems ✔ Engine cooling systems, performance or driveability services, and repairs ✔ Fuel services ✔ Electronic engine management, other onboard computer systems (engine, body, brake and suspension computers, cruise control systems) ✔ Brake systems ✔ Starting and charging systems ✔ Electrical systems ✔ Exhaust systems ✔ Ignition systems ✔ Steering/suspension, wheel bearings, CV joints, half-shafts, drive-shafts ✔ Other minor repairs ✔ Towing and car rental (specific guidelines apply for eligibility)

Ask your service provider about these Mighty Warranty Programs. —13—

BASIC CAR CARE

CHECKING THE SERPENTINE BELT emember how your parents told you that driving a car is a huge responsibility? They weren’t just trying to scare you— it’s true. An important aspect of car ownership is a commitment to proper maintenance. One area that is easy to keep an eye on for yourself is belt maintenance. Belt degradation can lead to overheating, loss of battery charge, or other serious issues.

Inspecting the Tensioner When checking out the serpentine belt, always inspect the tensioner too, especially if the belt is worn. This mechanism maintains

Checking the Serpentine Belt The serpentine belt delivers the engine’s power to all the accessory drive components. This belt, unlike many other belts, is composed of a synthetic rubber called Ethylene Propylene Diene Monomer or EPDM. This material does not show obvious damage or wear. When inspecting the serpentine belt, focus on the condition of the rims and grooves instead of looking for

SERPENTINE BELT TENSIONER

belt tension and absorbs shock loads in the belt drive. The tensioner can wear out in the internal damper or in the pivot shaft bushing, and either problem can lead to slippage, which can create a nightmarish mechanical situation. Observe the tensioner while the engine is running. If you notice a small amount of tensioner movement, chances are that all is well, but shimmies and shakes spell trouble.

Avoiding Slippage

BELT GAUGE

cracks. This is most easily accomplished with a special tool called a belt gauge. Place the tool in the belt’s grooves, perpendicular to the belt. If there is a visible air space and no sign of damage, the belt still has life. However, if it lies ﬂat, it needs immediate replacement.

Belt slippage leads to an increased heat load and premature failure of the belt. It also distributes excess heat to other involved components, increasing their risk of damage as well. Save yourself unnecessary repair expenses and potential roadside headaches by checking these two mechanisms as a regular part of your car care routine. And don’t forget to take your car in for its scheduled maintenance with a professional as well.

—14—

Transmission Service: THE WHOLE PACKAGE ife gets hectic, and it’s hard to slow down to perform mundane tasks that take us away from other obligations. However, postponing certain tasks comes with a heavy price tag. A perfect example is servicing and maintaining a car. Neglecting it means more hassles, and lost time and money down the road. The best technicians are those that help car owners understand the need for regular maintenance.

a filter change to that service. Simply changing the ﬂuid does not clean the filter. Transmission specialists encourage new filters for peak car performance.

WHEN TO CHANGE

The best time to change a car’s filter is at the recommended transmission fluid change interval that you find in the vehicle owner’s manual. Most auto manufacturers recommend a transmission service every 30,000 miles. Some vehicles track fluid life inside the onTRANSMISSION FLUID EXCHANGE board computer and give the driver a warning when they are nearing its useful end. One of the most important jobs of the auto Technicians can check for two other signs specialist is transmission maintenance. It is a that it might be time for a transmission filter critical part of the automobile’s engine system change. If the fluid smells burnt, or if it turns with many moving parts. One essential part of a dark color, the fluid needs to be changed. its maintenance is replacing the old transmisThe filter should go too since sion fluid or having the fluid it has likely absorbed a lot of exchanged. Internal gear old dirty fluid. Another indicawear can sometimes result tion is if the driver begins to in metal shavings floating experience unusual transmisaround in the transmission sion behavior, either in the fluid as a vehicle gets older. form of clunky gearshifts or A fluid exchange drains old unusual noises. These can also fluid, and if the technician be clues that the filter and fluid uses an exchange and fill TRANSMISSION FILTERS need to be replaced, even if this device, he can extract fluid from the transmission, lines, and cooler. However, is occurs between the recommended service a fluid exchange alone enough to maintain op- intervals. timal performance for a vehicle’s transmission? While a change in the fluid can make a big

TRANSMISSION FILTER CHANGE While some shops may suggest that a ﬂuid change is all that is needed, a transmission specialist would strongly advise you to add

difference and needs to be done regularly, a transmission service is not truly complete unless the filter is changed as well. As part of a system, completing both is crucial to keeping all the moving parts running smoothly.

—15—

Should You Be Following the Normal or Severe Lubricant Service Schedule? THE ANSWER MAY SURPRISE YOU you should follow the more frequent severe service schedule if you often:

poll by AAA found that only 6% of motorists thought they did most of their driving under severe service conditions, but further study showed it actually applied to 62% of drivers. So how can you tell which category your driving falls under? Let’s take a look.

■ Take short trips of 5 miles or less in normal temperatures or 10 miles in freezing temperatures

Engine Oil is Truly the Lifeblood of Your Vehicle Even novices know that engine oil acts as a lubricant between moving parts such as the piston and the cylinder to prevent metal-tometal contact. But oil also serves as a coolant, taking away engine heat to help prevent damage to engine components. Unfortunately, this same heat breaks down the oil, changing its viscosity and therefore, its ability to do its job. Heat and contaminants also affect the life of additives, such as inhibitors that prevent corrosion and detergents that help keep the engine clean. Finally, engine oil will become diluted over time due to the collection of fuel and moisture in the crankcase. This is exacerbated by frequent cold starts and short driving trips, which prevent the engine from reaching its normal operating temperature.

So, Should You Follow the Normal or Severe Schedule? Of course, no matter how you drive, your engine oil must regularly be changed. However,

■ Drive in stopand-go traffic in hot weather ■ Have a short daily commute ■ Drive at speeds of less than 50 mph for long distances ■ Drive on mountainous, dusty, muddy, sandy, gravel, or salt-spread roads ■ Pull a camper, top carrier, trailer, or carry heavy loads If none of these conditions apply, the normal service schedule should be adequate. Consult your owner’s manual as well for further criteria specified by your vehicle manufacturer.

—16— Vol. 3 No. 2

Mergers and Acquisitions

The power of pricing HEALTHY MARGINS IMPROVE THE VALUE OF YOUR BUSINESS By

Michael McGregor

y father-in-law, Ed Tuck, was a pretty smart business was. Now, you can’t tell me that the Southern California guy. Before becoming a venture-capitalist and business environment is less competitive than the suburbs of founding Magellan GPS, he was a turnaround some Midwestern city. There was no particular compelling reason consultant to failing telecom businesses in the I found for this difference -- except the Midwest tire dealer was 1980s. (Read “A Sense of Direction,” Ed Tuck not aware of the power of pricing, and the SoCal operator was. and Mike Khaldun, Dog Ear Publishing, 2018.) I once asked him If the first reason you’re in business is to make a profit, the about the first things he did when he took over a failing business. second reason should be to improve the value of that business. Ed said that first, he’d find the person responsible for the mess Typically, the business and real estate you own as a tire dealer and fire that person just to get everyone’s attention. Then once is your largest investment by far. Improving the value of it with he got their attention, he raised prices. the power of pricing will enhance not only your current income, Ed said that most good companies underprice their products but also your net worth. and services, and if they are losing money, that is especially true. “Market value” from a strategic acquirer is likely the highSo he’d raise prices until the first customers complained loudly, est offer a profitable tire business will get. Strategic acquirers but he was OK with that. He guessed those pay for your business based on its profits and YOU‘RE IN BUSINESS FOR A customers might not be loyal or profitable and the appropriate EBITDA multiple they apply he could afford to lose some of them. But he kept VARIETY OF VERY GOOD REASONS, (based mostly on their views of your size and on raising prices until the margins were healthy attractiveness). BUT THE NUMBER ONE REASON and the loyal and most profitable customers I had the pleasure recently of advising screamed. By then, he had a profitable business a family-run business that was looking to IS TO MAKE A PROFIT. IF YOU on a solid footing that could grow from there. sell after almost 50 years in business. In CAN’T DO THAT, SHUT IT DOWN I’ve employed Ed’s technique in tire stores, preparation for the sale, they continued to districts, regions and even helped at the national focus on what they did very well -- retain AND GO DO SOMETHING ELSE. level for a tire retailer that was losing money in and motivate a seasoned group of tire store the early 1990s and had not raised its service and parts prices in professionals and execute a disciplined sales and service five years. There was some serious inflation back in those days, so process within their stores. But they combined great people imagine the catching up we had to do. We employed a new pricing and execution with the power of price increases (often store strategy that was competitive with “signal” or “visible” items, but by store) and targeted expense reductions. They got what we arbitrarily jacked up the prices of everything else nationwide. I always strived for in business: the “triple bang” -- sales Then it dawned on us that doing business in San Francisco increases on top of margin improvement on top of lower with its rents, wages and regulations was higher than, say Omaha expenses. The triple bang is a beautiful thing. Upon exit, they or Fargo. Duh, right? So, we made market appropriate price doubled their valuation from the offer they had received just increases and put the local districts and regions in charge of 18 months prior. setting and keeping up with market pricing. A lot went into the A lot of tire dealers I meet are baby boomers nearing or past subsequent 25-year run of success this company had (including retirement age. I’ve read that one’s perception of risk changes as retaining people, improving processes, and focusing on just three we age. Often, we become overly cautious and afraid to take the key goals), but the power of pricing was an unheralded part of it. bold steps like employing the power of pricing to get a business You‘re in business for a variety of very good reasons, but the on a better footing. If you think this sounds like you, turn over number one reason is to make a profit. If you can’t do that, shut the pricing responsibility to someone you trust, track it — and it down and go do something else. My view is life is easier with keep at it. ■ healthy profit margins. I once analyzed the financials of a tire dealer with a few stores in the Midwest that was deep in debt Michael McGregor is a veteran of the tire and service industry and a partner at Focus and considering bankruptcy. I benchmarked that business with Investment Banking LLC (focusbankers.com/tire-and-service). He advises and assists a profitable client in Southern California and found the Midwest multi-location tire dealers on mergers and acquisitions in the auto aftermarket. For more information contact him at michael.mcgregor@focusbankers.com. business’ overall gross profit margin was half of what the SoCal’s

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

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

As long as retail remains in growth mode, price increases are likely to stick

John Healy

ur recent discussions with dealers leave us with a view that retail sell-out trends remain healthy and volumes improved over the prior year’s period. From a volume standpoint, surveyed dealers reported they saw unit sales volumes improve marginally (approximately 0.3%) compared to the same period last year. When discussing the outlook for the remainder of the year among contacts, conversations continue to leave us encouraged that the final period of 2018 will be a good time to be in the tire business. We note optimism on the “top line” of things as higher than in past years and note that the pressure/concerns facing contacts are more related to cost items (raw materials/tariffs/ freight) and normal cyclical tendencies in the tire business as opposed to concerns of a fundamental shift in the tire industry landscape as some may have feared in 2017/early 2018. Almost all manufacturers we monitor have put implemented some level of price hikes since the third quarter to offset elevated raw material costs. Given this, our discussions with dealers indicate that price increases still seem to be getting initially absorbed with little push back and, in-line with our view last month, as long as retail remains in growth mode, price increases are likely to stick. However, despite the relative stabilization in raw materials prices, the trajectory remains upward, and contacts have speculated that further price increases could be on the horizon at year end (already started to filter through). Despite this, sell-out trends have the potential to experience a nascent seasonal tailwind through the rest of the year. The normalized winter weather seen over the past two years has impacted consumers’ thought-processes and seems to be impacting buying behavior.

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

Average tire tier rankings Tier

Aug ’17

Sep ’17

Jul ’18

Aug ’18

Sep ’18

Oct ’18

Tire 1

Tire 2

Tire 3

SOOURCE: NORTHCOAST RESEARCH HOLDINGS LLC

REPLACEMENT TIRE SALES SAW INCREASE Dealer commentary suggests consumer demand for passenger and light truck replacement tires was up in October compared to the same period last year. The net number of respondents indicating they saw an increase in demand year-over-year was 7.3% of contacts. Our discussions revealed many dealers experienced an acceleration in unit volumes throughout the third quarter, which we note immediately preceded many proposed price hikes that were about to be enacted throughout the industry. Despite this, contacts relayed that price actions have not detrimentally impacted demand and volumes were holding steady into the fourth quarter.

A LOOK AT MIX TRENDS IN THE MARKET

In response to best and worst performers, our recent survey suggests that Tier 1 brands gave up some momentum following several months of strength, allowing Tier 3 brands to escape the basement of our rankings for the first time since May 2018. The continual theme we notice in our research is the fortitude of Tier 2 brands. Even though consumers may desire a recognizable brand, the combination of price and performance that Tier 2 tires provide continues to be a winning formula among shoppers as valueconscious consumers continue to gravitate toward this segment. This is further illustrated by the fact that Tier 2 brands have only been at the bottom of our rankings one time since September 2016 and have been the best performer in our index over one-, two- and three-year time frames. Furthermore, we note that Tier 2 brands have been the segment of most significant growth according to surveyed dealers for eight out of the last 11 months while, on a longer-term basis, Tier 3 brands have been ranked or tied for last place by our respondents in 23 of the past 50 months. Despite this recent speed bump of Tier 1 under-performance, we feel the mega-trend of the market shifting to HVA shipments remains a long-term opportunity. We would attribute the temporary weakness in Tier 1 sell-out results as more of a function of recent pricing actions. Tier 1 nameplates began working their price increases through the channel beginning in September and October and consumers may have noticed the price tag uptick and rebuffed initial attempts for them to pay more as vehicle owners have not been conditioned to price increases on tires in recent memory, which could explain the out-performance of Tier 2 brands in October. ■ John Healy is a managing director and research analyst with Northcoast Research Holdings LLC based in Cleveland, Ohio. Healy covers a variety of subsectors of the automotive industry.

MTD December 2018

NumbersThatCount

Relevant statistics from an industry in constant motion COURTESY OF MAHLE AFTERMARKET INC.

4 Number of Mahle-sponsored racers who earned championship titles in 2018. Joey Logano won the NASCAR championship with a Mahle-sponsored Roush Yates-built engine. J.R. Todd won the NHRA Funny Car World Championship. Mike Janis won his first Pro Mod Drag Racing Series championship, and Matt Smith clinched the NHRA Pro Stock Motorcycle Championship (and recorded the fastest speed ever recorded in the series at 201.22 mph). SOURCE: MAHLE AFTERMARKET INC.

66%

278.6 million

4.1 million

Percent of people who will drive their vehicle until the day it quits.

Number of motor vehicles registered in the U.S. in 2017.

Number of hybrid vehicles registered in the U.S. as of Jan. 1, 2017.

SOURCE: AUTOMD

SOURCE: IHS MARKIT ©GETTYIMAGES.COM/IKRYANNIKOVGMAILCOM

Number of miles driven per year by the average American. SOURCE: TIME.COM

©GETTYIMAGES.COM/MEVANS

45%

21 cents Cost of a gallon of gas in 1929. That’s $2.41 in inflation-adjusted prices. SOURCE: 24/7 WALL ST.

SOURCE: DIGITAL AUTO CARE FACTBOOK 2018

Percent of U.S. vehicles with turbocharged engines. Turbocharged engines were standard on only 10% of vehicles in 2008. SOURCE: EDMUNDS.COM INC.

MTD December 2018

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2018 SEMA Show

Modern Tire Dealer’s 2018 Tire Dealer of the Year John Quirk, center, celebrates alongside members of his team from VIP Inc., dba VIP Tires & Service.

2018 SEMA Show/Global Tire Expo TIPS FOR RECRUITING, A TRIBUTE TO WAYNE WILLIAMS AND NEW PRODUCTS, TOO By

Modern Tire Dealer staff

he struggle to find and retain good employees doesn’t take a break when tire dealers gather in Las Vegas to attend the Specialty Equipment Market Association (SEMA) Show. Fortunately, educational sessions and forums at this year’s show offered tips, tools and best practices to help dealers with the process. During a panel discussion of tire dealers, Mark Smith, owner of Midas of Richmond, a four-store operation in Virginia, revealed how much he values a good technician. “The most effective tool we have is our people,” Smith said. “When the time comes

and we want to grow, I’ll walk out in the bays and talk to the techs.” He asks if they have someone to recommend. If he makes that request in the morning, Smith said he’s certain he’ll have three names by the afternoon. “We spiff it. We have great luck,” he said. It’s a generous spiff for the technician who made the recommendation — worth $6,000 if the new person is hired and works at least six months. Here’s how it breaks down: $500 the day the technician is hired; $500 at the end of the first week; $1,000 at the end of 30 days; $2,000 after 90 days; and another

$2,000 after 180 days. “Hard, cold cash.” Craig Tate, owner of Tate Boys Tire & Service LLC, said his family-owned dealership recruits employees “nonstop,” using online hiring platforms like Indeed, as well as visits to college campuses. The company, with six locations in northeast Oklahoma, also has created a Manager in Training (MIT) program to guide prospective store leaders. Tate said the company did a good job of finding employees for the front counter. “We would get great personalities, throw them right up front, and then two years later I’m frustrated because they don’t MTD December 2018

know what a ball joint is.” The problem was those employees had no experience in the bays. The MIT program is designed for “future leaders of the company.” One participant had earned a Master’s Degree in Business Administration. Another was a trained engineer. “We recruited them and sold them on our business.” But they had no automotive experience. MIT participants spend 90 days working in the Tate Boys quick lube lanes, six months in the tire lanes, and another 90 days alongside the company’s technicians. “It’s worked out well. Three of our store managers have graduated from that program,” Tate said. The result is that those store managers are great tire changers who understand what needs to happen in the bays to make the business operate efficiently and profitably. The participants are paid at a higher grade than the jobs they’re assigned to in the shop, but Tate said the store where they’re assigned doesn’t have to cover their full salary. The extra pay is assigned to the corporate payroll, while the store has to cover the portion that would have been paid to a tire technician or quick lube technician. Like Smith, John Quirk, chairman and CEO of VIP Inc., dba VIP Tires & Service, said, “Our people are our best recruiters.” And the company rewards them for their efforts with up to a $2,000 referral bonus. With 58 stores in four New England states — Maine, Massachusetts, New Hampshire and Vermont — Quirk said his company has turned to psychological testing to help it find the right people. “We don’t want to put that square peg in a round hole, because in years past we just got a bigger hammer and made it fit.” VIP Tires & Service uses the predictive index, which Quirk boils down to this — is the candidate an introvert or an extrovert? He said it helps the company place people in the right jobs. “If you don’t have the DNA to be in front of customers all day, you’re going to be so worn out,” he said. “There’s a lot of older technicians, when their body is starting to break down, they want to work on the counter. We’ve had great successes on a few of them, but most of them aren’t wired (for that job).” Quirk, Tate and Smith were the stars of a forum hosted by the Tire Industry Association. Tires at 2: Successful Tire w w w . M o d e r n T i r e D e a l e r. c o m

Tire dealers Mark Smith, John Quirk and Craig Tate (left to right) discussed their tactics for recruiting employees in a forum hosted by TIA.

Dealers Share Their Secrets featured Quirk, Modern Tire Dealer’s 2018 Tire Dealer of the Year; Tate, Tire Review’s 2018 Top Shop; and Smith, winner of the Tire Business 2018 Tire Dealer Humanitarian Award.

MOBILE APPS HELP KEEP EMPLOYEES Tactics for retaining employees, especially members of the most tech-savvy generation ever, were covered in an educational session led by Gene Marks. Human resources platforms for perking, managing and reviewing employees are exploding in popularity, according to Marks. He said millennials are desperate for more feedback from their employers, and HR apps give it to them. “We are horrible at providing feedback to millennials,” said Marks, a columnist, author and owner of Marks Group PC, a Pennsylvania firm that provides technology and consulting services. He recommended four mobile apps to the business owners attending “Talent Management: Trends & Tech Tools for Finding, Motivating Millennials.” They are: Namely; Paychex; Bamboo and Performance Pro. “These HR apps are huge not just for performance reviews but for all other things regarding payroll. It’s a great productivity tool and gets your employees engaged,” he said. The apps are inexpensive and integrate with all payroll systems, according to Marks. Key features of performance apps include reminders, alerts and workflows; immediate and frequent feedback; collaborative comments and responses; ways to document good and bad reports; track

vacation and sick time and measure progress against goals and objectives.

ITDG HAS A NEW PARTNER Members of the Independent Tire Dealers Group LLC (ITDG) and employees of Mickey Thompson Tires & Wheels celebrated a new partnership and a new tire at the SEMA Show. The ITDG has entered into a partnership with Mickey Thompson to distribute their products throughout the group’s network, according to ITDG CEO and President Dave Marks. The group currently has 150 members in 675 locations in 42 states. “It is a great opportunity for ITDG to be partnered with a company like Mickey Thompson, which has history and longevity in the specialty tire business,” said Marks. “Mickey Thompson cherishes the dealer relationship over selling a set of tires. That’s the priority for them,” said Marks. Blake Warner leads ITDG market development for Mickey Thompson. He said Mickey Thompson is founded on the basis of being a partner to retailers. “The retailer is the heart and soul of our business. We want to be a part of the ITDG members’ businesses, and we want them to feel like partners in our business.”

BAJA BOSS HAS A 6-PLY TREAD The gathering at the Mickey Thompson booth to mark the new partnership did double duty as an official product launch. Mickey Thompson unveiled its newest tire, the Baja Boss extreme mud tire, to ITDG members. The new mud terrain tire has a three-ply

2018 SEMA Show sidewall and six-ply tread. Improvements over the prior model of the tire include side biters that are 50% larger and one ply that is 150% stronger, according to Robert Dejarnette, marketing program manager. “Our size offerings are 17-inch up to 24-inch wheel diameters. Height-wise the sizes go up to 40 inches,” he said. Features include mud scoops and stone kickers. “It is a premium mud terrain tire.” The Baja Boss will be available in 18 high load-carrying capacity sizes from 17 to 24 inches for a variety of light truck and SUV models — with 18 additional sizes coming later. The load ranges are developed for today’s popular and extreme leveled/lifted applications. The Baja Boss was one of thousands of products in more than 2,400 exhibit booths in the Las Vegas Convention Center. Here are more of the products and news from the show floor.

NITTO ENTERS SIDE-BY-SIDE MARKET Nitto Tire U.S.A. Inc. unveiled its first tire for side-by-side (SxS) vehicles, the Trail Grappler SxS. Product development engineer Ryan Parszik says the new tire is a smaller version of Nitto’s race K-spec tire. The first size for the Trail Grappler SxS is 30 x 9.50 R15LT. The Nitto booth also showcased the Trail Grappler MT tire in a new size: 40 x 15.50 R26LT. Customers were asking for the Trail Grappler MT in a 26-inch rim diameter, according to Parszik. The new size becomes available in early 2019, to bring the Trailer Grappler MT offering to

Independent Tire Dealers Group members and Mickey Thompson Tires & Wheels celebrated their new partnership during the 2018 SEMA Show.

15-inch up to 26-inch rim diameters with a maximum overall diameter of 40 inches. In addition, Nitto introduced the NT420V tire in 20-, 22- and 24-inch sizes for luxury SUVs. The NT420V will be released in early 2019. It replaces the NT420S.

NEW TBR LINE IS COMING TO NORTH AMERICA Prinx Chengshan (Shandong) Tire Co. Ltd. is entering the North American tire market with its own line of truck and bus tires. The company has hired industry veteran John Aben as its president for North America. Aben most recently was with Giti Tire (USA) Ltd. as a senior vice president of original equipment and consumer sales. Prior to that, he spent 10 years with Nexen Tire America Inc. as vice president of sales.

Robert Dejarnette said the new Baja Boss will be available in March 2019.

Aben said the company will begin shipping a line of truck tires to North America in early 2019. No brand name has been finalized. In other countries, the company sells under the Prinx, Chengshan, Austone and Fortune labels. The North American operations will be based in Southern California, and Aben hopes to have a team of between seven to 10 people on board by next year. The initial plans are for the company to sell 80% of its tires on a container-load basis, with the remainder flowing through third-party logistics. China-based Prinx Chengshan (Cayman) Holding Ltd. was listed on the Hong Kong Stock Exchange (code 1809.HK) in October. Che Baozhen is an executive director of the holding company and also serves as CEO of Prinx Chengshan

Nitto’s new Trail Grappler SxS will be available in the first quarter of 2019.

MTD December 2018

TOUGHER HARDER FARTHER

The GEOLANDAR M/T® G003 has intimidating good looks that do far more than get your customers noticed. This tire is built to dominate with rock-solid GEO-SHIELD™ technology that delivers strength, crushing performance and merciless traction. 8% LONGER TREAD LIFE

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† All performance results are based on third-party commissioned tests using a pick-up truck equipped with LT265/70R17 LR E tires. Tires were tested against other leading brands under controlled conditions and at various speeds. The data reported at 40 mph for wet braking and 44 mph for interior noise. Individual results may vary depending on vehicle type, tire maintenance, driving style and road condition. For complete test results write to Yokohama Tire Corporation at 1 MacArthur Place, Suite 800, Santa Ana, CA, 92707.

2018 SEMA Show The 3 big T’s: tariffs, technology and trends SEMA’s Wheel & Tire Council holds panel discussion to map out the future Before the 2018 Specialty Equipment Market Association (SEMA) Show began, the association’s Wheel & Tire Council convened a panel of experts to talk about the three big T’s: tariffs, technology and trends.

TARIFFS Stuart Gosswein, senior director of federal government affairs for SEMA, said the association supports fair trade, but “the tariffs are going in the wrong direction.” Plus, he said the tariffs imposed by President Donald Trump over the past year have been implemented on parties who “had no idea they were coming.” Gosswein said rather than imposing tariffs, such as the steel duties that have been assessed on steel from nearly every country, the association believes a better solution is to address the problem of Chinese imports. But Gosswein acknowledged the difficulty in doing that, especially as Trump continues to push more tariffs. The same day the Wheel and Tire Council panel spoke on the issue, Bloomberg reported the U.S. government planned to impose yet another round of tariffs on $257 billion worth of Chinese imports if the high-level trade talks between Trump and Xi Jinping failed. That new dollar amount would be on top of the tariffs already leveraged on $250 billion of imported goods. “The president believes this brings our trading partners to the table, but that’s not happening,” Gosswein said. John Healy, a managing director and research analyst for Northcoast Research Holdings LLC — and Modern Tire Dealer columnist — said the tariffs, along with a 10% rise in raw material costs, have increased prices by 30% in the last year.

SEMA Wheel and Tire Council Chairman Gregory Parker, on the left, moderated a panel discussion of experts during the group’s meeting on Oct. 29. Participating, from left, were Stuart Gosswein, John Healy, Myles Kovacs and Tyson Boyer. The council hopes to host another event next year.

Myles Kovacs, whom WTC Chairman Gregory Parker introduced as someone who “has probably designed more wheels than any person living,” has a background in the fashion industry. He expects the tire and wheel industry to respond like fashion did years ago. Production will move to countries outside the control of tariffs, and the industry will find ways to lessen the financial impact of tariffs. In fashion, Kovacs said, it’s less expensive to import clothing that’s sprayed and designed to be waterproof. Thus, there are more waterproof items available. The big question on tariffs is this: what comes next? Gosswein provided a straightforward answer: “I don’t have the foggiest idea.”

TECHNOLOGY Healy suggested that the advancement of new technologies in tires and tire pressure monitoring sensors has made motorists safer, and more aware of their tires, and the need to maintain them. But it’s also led

to a downturn in the replacement market, he said. “I think the next wave of technology will be on the fleet side,” Healy said. Tyson Boyer, sales manager for Dill Air Controls Products, said the complexity of vehicles has already required that tire dealers upgrade their equipment. Alignment equipment that’s 10 years old isn’t suitable for a standard four-wheel alignment. But the good news is there are partnerships emerging to address the changes. They feature both traditional and new parties – including medical companies familiar with imaging who are focusing on the images and impressions of tires.

TRENDS In wheels, Kovacs said the outlook is for bigger and wider wheels, different finishes and wheels made of different materials. Each new innovation brings in partners from other areas of the world — India, Vietnam, China and Europe are already in the game. He said when it comes to plastics

there are products coming from Russia. Healy said millennials’ view of vehicle ownership is “very different” from older generations, and it will have an effect on the marketplace. But at the same time, a transition from individual owners of personal cars to fleets owning and operating cars for consumers “creates more miles driven,” which leads to the need for more replacement tires, and that’s “a boost for the industry’s outlook.” But the pressure at the retail level isn’t going away, Healy said. “I think people want to shop at fewer places, not more places.” So he sees the convenience factor as key for consumers who might research tires online, but ultimately buy them and have them installed at Costco while they shop. Kovacs still sees a place for brick and mortar — “if it’s a niche product that Walmart doesn’t sell.” He pointed to the fact that major home improvement chains sell paint, but there are still standalone, specialized stores that sell paint, too. MTD December 2018

Global. The company currently has one manufacturing facility in China with an annual production capacity of 4.6 million TBR tires and 6.5 million PCR tires. Due to elevated tariffs, there are no current plans to sell passenger tires in the U.S. The company, which previously operated as Cooper Chengshan (Shandong) Tire Co. Ltd., continues to supply Roadmaster brand truck tires to Cooper Tire and Rubber Co. Negotiations are ongoing for a renewal of those agreements, which are due to expire on June 30, 2019.

vation, technical achievement, quality and workmanship, consumer appeal and marketability. It features AdaptiveTraction Technology to grip the driving surface, whether rocky or smooth, in hot or cold weather conditions. It also was engineered with patented saw tooth technology designed to trap snow in the tread to provide superior stopping distance on snowy surfaces. Cooper backs the Discoverer AT34S with a 65,000-mile limited tread wear warranty.

HUNTER CONNECTS EQUIPMENT

COOPER EARNS NEW PRODUCT HONORS Cooper Tire & Rubber Co.’s Discoverer AT34S, an all-weather, all-terrain tire for pickup trucks and SUVs, was named a New Product Awards winner in the Tire and Related Product Category at the SEMA Show. The New Product Awards competition recognizes outstanding achievements in the development of products being introduced

John Aben is leading Prinx Chengshan’s new sales office in North America.

to the automotive specialty equipment market. Judges considered nearly 3,000 products in 16 categories. The Discoverer AT34S captured the judges’ attention for its superior inno-

SEMA Show attendees were the first ever to see Hunter Engineering Co.’s new drive-over tread depth measuring tool, Quick Tread Edge. The company says Quick Tread Edge delivers detailed tire condition diagnosis in less time and with added edge wear detection, providing a greater analysis of overall tire condition. Quick Tread Edge can be installed as a standalone unit or integrated in a flush mount configuration with Hunter’s

TRACK OF TRUST

Accepting Dealer Applications Nationwide • Secure Territories Available • DDP Pricing • Full Line: PCR/UHP/Run-Flat/Winter/LT • Passenger, UHP, Light Trucks, Run-Flat and Snow Tires • Petlas has an ISO 9001 Quality System Assurance Certificate • Exports to nearly one hundred countries worldwide • Petlas Tires have passed all US DOT, European ECE, Inmetro, and CCC Certification • Global Production of 10 Million Units per Year • NO TARIFF / NO ANTIDUMPING / COUNTERVAILING • Industry Warranty

ME A BECO TIRES S PETLA IBUTOR DISTR DAY! TO

Oriente Tire USA, LLC. Petlas Tire USA, LLC. Office: (786)573-0757 info@orientepetlas.com David R.J. Halldane, Sales Director Tel: (805) 218-5205 or email: david.halldane@orientepetlas.com

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

2018 SEMA Show touchless alignment inspection system, Quick Check Drive. Both systems are connected with HunterNet, the company’s smart technology platform. HunterNet automatically displays digital inspection findings on a Flightboard screen, allowing customers to see their vehicle’s inspection results first-hand. All of these products were integrated in Hunter’s booth, so attendees could see the seamless connectivity in action each time a car was driven over the Quick Check Drive system. Hunter also demonstrated its partnership with TCS Technologies to enable shops to integrate alignment machine results with work orders and a customer’s record using TireWorks HD software. In addition, service providers can access alignment results from any location. The software offers an optional TCS Live Feed feature that allows customers to view their service and alignment history online 24/7. “We are excited to tie alignment results into the point of sale to help shops be more productive and provide a better customer experience,” said Alan Hagerty, product manager. Hunter also introduced a HunterNet

Jefferson Carpenter, director of software sales for TCS Technologies, (left) and Alan Hagerty, Hunter product manager, demonstrated TireWorks HD software that connects a Hunter alignment machine with a shop’s point-of-sale system.

feature that transmits connected equipment results to shops. Called Push Reports, the feature eliminates the need to pull information manually, which creates opportunities for service providers to make immediate data-driven decisions. “Imagine getting

a report on how productive your store is being with its alignment and balancing equipment,” said Madeline Triplett, advertising development manager. A wide range of tire and wheel servicing equipment, including the new Revolution

Wayne Williams is inducted to Wheel & Tire Council Hall of Fame The members of the Specialty Equipment Market Association (SEMA) Wheel & Tire Council Hall of Fame exhibit “the best in the industry.” And for 2018, the group gave that honor to only one man: the late Wayne Williams. He was known as a writer — and monthly columnist for Modern Tire Dealer — as well as a salesman, designer, husband and father, said Gregory Parker, chairman of the Wheel and Tire Council. He also founded ExSell Marketing Inc. And he exuded the characteristics of the council’s Hall of Fame members, with his “creativity, dignity, integrity, (and) being industrious.” Parker said Williams enhanced the status of the industry “while significantly contributing to its growth, progress and professionalism.” Williams died July 19.

Among all of those words, it was Williams’ creativity that stood out. Parker said it was as if Williams was nearly too creative, because “he had so many creative ideas, so much zeal for these ideas, so much passion for every idea that it was hard to choose which great idea to put into effect.” Parker said there are times leaders have to know when to set aside good ideas to reach for the great ones. “I truly believe our hall of fame inductee tonight lived that principle more than most.” Williams was committed to doing things the right way, and delivering innovating solutions to make business better for everyone. “He was a visionary, a damned hard worker and a friend.” Williams’ wife Tia and his son Ryan attended the Wheel & Tire Council event at the

Ryan Williams honored his father, the late Wayne Williams with a tearful, heartfelt speech the night Wayne was inducted into the Wheel & Tire Council Hall of Fame.

2018 SEMA Show. Ryan Williams said it would have been he and his dad’s 16th show they attended together. He said his dad’s “passion for the wheel and tire aftermarket (business) will forever be remembered” by anyone he worked with. Williams outfitted all of his vehicles with custom wheels, and would stand

behind someone else’s tire counter to sell tires — just for fun. He loved to sell a good tire at a great price, and pushed new ways to move units. The younger Williams also shared one of his father’s trademark tips: “You always said communication is 90% of everything, and the last 10% is just showing up.” MTD December 2018

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2018 SEMA Show tire changer with WalkAway capability, was featured in the Hunter booth. At about 7,000 square feet in size, the booth was the largest display by a non-original equipment manufacturer at the SEMA Show, according to Triplett.

SEAT AND FILL TRUCK TIRES HANDS-FREE For Martins Industries Inc., the focus in developing new products is threefold. They must enhance safety, be ergonomic, and help a user be more efficient. One of the new products that hits all three marks is a hands-free solution to fill truck tires while they’re inside a cage. The Inflation Pit Stop combines the seating and inflation of truck tires into one step, safely done within the confines of the cage. The user rolls the tire into the cage, and a roller in the bottom of the unit helps the technician easily rotate the tire to get access to the valve. After it’s connected, users need to press three buttons to select the pressure, fill the air tank, and then push ‘go.’ Martin Dépelteau, president of Martins Industries, said the company spent twoand-a-half years developing the product. It requires technicians to handle the tire for 54 seconds, “and then you can walk away,” said Dépelteau. The inflation system is available on both a four-bar cage, as well as an enclosed tire cage. Martins Industries spends time in the

Hennessy Industries’ Mike Wade (left) demonstrated the features of the Coats APS 3000 leverless tire changer to SEMA Show attendees.

field alongside tire dealers and fleets looking for ways to solve their problems. Dépelteau says handling truck tires safely is one of the two biggest concerns those customers identify year after year (the other is how to safely and efficiently unload large loads of tires). The company provided the U.S. market with its first look at the Inflation Pit Stop during the 2018 SEMA Show.

PLASTEEL GETS A NEW LOOK A metallic finish and a corrosion-resistant material have been added to the new genera-

tion of Plasteel wheel weights. “We added an aluminum flake to give the wheel weight a metallic appearance,” said Jerilyn Henegar, senior marketing specialist for Wegmann Automotive USA Inc. The premium wheel weights consist of a steel core wheel weight encased in a plastic outer shell. Henegar says the plastic outer shell, which is unique in the industry, has been enhanced with “corrosion-resistant material that provides a scratchless install.” Tapered edges further distinguish the wheel weights from the original Plasteel product, which was introduced in 2012. The updated version of Plasteel weights will be available in 2019.

HENNESSY EXPANDS SERVICE

Martin Dépelteau said the company spent more than two years developing the Inflation Pit Stop.

Jerilyn Henegar displays the new version of Plasteel wheel weights, which have a metallic finish.

The new Coats APS 3000 leverless tire changer from Hennessy Industries Inc. comes with a wheel lift, a bead sealer and reverse mount adapter to eliminate scratching of the rim. Released in 2018, the center post, tilt back tire changer is ideal for run-flats, low profile tires, expensive aftermarket rims and difficult original equipment wheels, according to Mike Wade, product marketing associate. It services up to a 47-inch tire and 16-inch wide rim. The Coats APS 3500 is a touchless diagnostic wheel balancer with two radars. One measures the outer wheel width and the other performs wheel diagnostics. “If you have an egg-shaped tire, the machine will let you know you have a high spot on the MTD December 2018

TIA honors four industry leaders The Tire Industry Association (TIA) inducted two members to the Hall of Fame and presented the Ed Wagner Leadership Award to a pair of honorees during the 2018 Tire Industry Honors Awards Ceremony. The Hall of Fame honorees are: Bob Majewski, president of Sumerel Tire Service Inc. and Arvind Poddar, chairman and managing director of Balkrishna Industries Ltd. (BKT). This year’s Ed Wagner Leadership Award honorees are: Mike Baggett, who retired from Yokohama Tire Corp., and Freda Pratt-Boyer, senior auditor of Purcell Tire Co.

31 Inc.’s Dave Kovach displays the new Smart Sensor Elite tool.

tire,” said Wade. Features include a wheel weight usage tracker, which helps shops make accurate wheel weight purchases. Kevin Keefe, vice president of service and sales support, said Hennessy has been building service capacity. The company has more and better equipped service trucks on the road and has expanded its call center team. It has also invested in technology to centrally dispatch all service requests directly to service techs connected in real time to the company’s systems. “We’ve been investing in the capability and capacity to take care of our customers’ existing equipment, which will last them years,” said Keefe.

TIA President John Evankovich congratulates Freda Pratt-Boyer, 2018 Ed Wagner Leadership Award recipient.

Mike Baggett, who spent 46 years in the tire business, received the Ed Wagner Leadership Award.

NEW TPMS DIAGNOSTIC SYSTEM 31 Inc. introduced the Smart Sensor Elite, a diagnostics/programming tool for tire pressure monitoring system (TPMS) service. Features include built-in relearn procedure, VIN (vehicle identification number) scanning, OBD II reset, Wifi tool updates, and wireless Bluetooth connectivity. Sensors can be programmed when they are inside of the tire, adding convenience and speed. Also new to the Smart Sensor program is the ability to change placard values. Updates are free for the life of the tool, according to sales manager Dave Kovach. He said the tool is as easy to use as the current Pro+ tool, but loaded with so much more for users. “The Elite is a game-changer, everything works so smoothly.” w w w . M o d e r n T i r e D e a l e r. c o m

Bob Majewski (right), Hall of Fame honoree, is pictured with his wife, Sharon, and son, Rob.

BKT employees and Poddar family members gathered to honor Hall of Fame honoree Arvind Poddar, chairman and managing director. He was unable to attend the ceremony. The company announced plans to open a U.S. plant (more in January MTD).

2018 SEMA Show BARTEC AND TCS PAIR UP Bartec USA LLC is combining the capabilities of its Tech200Pro tool with software provider TCS Technologies. It’s the first time Bartec has integrated any of its tools with a software company, and Bartec believes it will help tire retailers talk to consumers about the condition of their tires and tire pressure monitoring systems (TPMS). Scot Holloway, CEO of Bartec, said, “It starts with our tools. We built in wireless technology.” The tool reads signals like sensor fail codes, tire pressure and tread depth. And then those signals are translated into a consumer-friendly report that a salesperson can show on a monitor at the front counter or on a larger monitor in the showroom. The sales team also can generate a printout to give to the consumer. Failed sensors are marked with a red warning label, and ones performing adequately are labeled green. The tools capture the data and relay it to the TCS Digital Inspections app, as well as the Tireworks HD software interface. Bartec said consumers can make better and more informed decisions when they know the precise condition of their tires and TPMS system. Holloway said “front counter people are missing opportunities” to sell sensors and TPMS components. He said tire dealers need to follow a basic rule: “If a car has TPMS on it, you need to inspect it.” This technology will help tire dealers talk about TPMS sensors, and “at the end of the day tire shops are going to sell more tires,” Holloway said.

A NEW WAY TO REMOVE OLD FASTENERS Removing an old, worn or weathered fastener no longer requires any hammering, thanks to what Apex Tool Group LLC calls an uncommonly simple solution to this common problem — GearWrench Bolt Biter Extraction Sockets. The extraction sockets don’t cut or dig into rounded, damaged fasteners with one-direction spiral blades like other extraction sockets do. Instead, the Bolt Biter is designed as a set of incrementallysized sockets with tapered, internal flutes. They slide over stripped and corroded fasteners and grip the rounded sides and remove them. And because the removal process doesn’t destroy the fastener, it can actually be

Health care and training TIA introduces two programs to its members The Tire Industry Association (TIA) announced two new initiatives for its members. They include a health benefits program for employees. Through an alliance with National General Benefits Solutions, TIA is able to offer flexible group health insurance. “Basically it’s a self-funding program,” said Tim Chandler III, TIA’s health benefits manager. “It’s ideal for small and midsize business owners (with from) two to 200 employees.” The program, which is designed to be “to be efficient and cost effective,” includes the following options: • Core Value Plan. The reference based pricing plan pays providers based on a multiple of the Medicare reimbursement rate (or other derived equivalent) regardless of the billed amount. It is not associated with any networks, so members have the freedom to use any provider they choose. • Core Value Flex. The level-funded, reference-based pricing option allows members to choose a referencebased pricing plan, with the option of switching to a PPO network mid-year without a change in monthly payment.

Tire Industry Association CEO Roy Littlefield (right, pictured with Kevin Rohlwing, center, and TIA President John Evankovich) said the “unprecedented growth” of TIA’s membership — 13,783 and counting — is coming from two areas: government affairs and training.

“If you max out your coverages for the year, you are not liable as a business owner to pay for anything that exceeds your maximum coverage,” said Chandler. In addition, if you have a low claims year, you will get a refund. For more information on the program, contact Chandler at tchandler@tireindustry.org. TIA also is developing new 100-level introductions to both its ATS (Automotive Tire Service) and CTS (Commercial Tire Service) training programs. Kevin Rohlwing, TIA’s senior vice president of training, said the programs are geared toward teaching industry personnel who do not service tire and wheel assemblies

the basics. Each program will include a sales module. “What we’ve found here is that we have very welltrained technicians in the back of the shop, but the people at the sales counter and people actually interacting with the customers don’t have the same level of knowledge, so there’s a (communication) gap. We are trying to bridge that gap so the people at the sales counter know what the service people know… and can make promises they can keep.” The introductory ATS and CTS training programs are only available through TIA’s Online University. Pricing will be announced with the final release schedule in the first quarter of 2019.

Product Manager Jarrett Wolf said the GearWrench Bolt Biter extraction sockets will be available individually and in 8-, 15- and 28-piece sets beginning in early 2019.

MTD December 2018

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TOURING PERFORMANCE 27% Longer Wear

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2018 SEMA Show removed and re-installed using the same Bolt Biter socket. GearWrench said that’s a big benefit when working with nonstandard parts. Here are three more benefits: 1. No hammering. The socket is placed onto the rounded, dull fastener. 2. It’s easier to disengage the socket from the fastener once the fastener is removed. 3. The Bolt Biter extraction sockets will last longer than sockets that cut into the fastener. GearWrench says the Bolt Biter extraction sockets will last 10 times longer than other fastener extractors. Bolt Biter Extraction Sockets can be used with both hand and power tools. They incorporate a square drive with a hex outer shape for easy use with an impact gun, ratchet, wrench or pliers.

EBAY WANTS TO BE YOUR SUPPLIER One year after unveiling a partnership with American Tire Distributors Inc. (ATD) to provide tire installation to customers, eBay Motors said ATD’s TireBuyer remains its lone service partner. When asked about its ongoing relationship with ATD, given the tire distributors’ bankruptcy, Jordan Hettinga, senior director of parts and accessories for eBay Motors, said, “We’re all in.” TireBuyer provides eBay shoppers with 9,000 tire installation locations. Hettinga said the tire installation service has “gone great,” and that eBay continues to look for ways to improve the experience for consumers. He used the availability of manufacturer rebates as an example. He said eBay is working on “how we highlight that with the installation to drive the best

Jordan Hettinga is an ASE technician who joined eBay after working for Snap-On and JD Power and Associates. He said at eBay, “Tires still remain a very strategic focus for us.”

value to the customer. We want to make sure we take advantage of these things.” When asked if eBay is looking for other installation partners, Hettinga said eBay is “constantly evaluating how we can expand and do more. The great news about a marketplace platform is it gives us an opportunity to start in one place and grow it from there.” But he also said the company isn’t set up to sign up installers one at a time. “Our goal is to capture as many as possible by casting a wide net.” Aside from tires, eBay Motors has launched a service tool it thinks will help professional technicians, as well as do-ityourselfers, find the right part for every repair. Shop by Diagram makes schematic diagrams of vehicles interactive. eBay technology matches parts listings with the visual diagrams, and the company guarantees fitment for the year, make and model of the vehicle when selected by the shopper.

Gary Vann showed booth visitors how Mighty Auto Parts’ free maintenance service analysis and customizable vehicle inspection form services can boost a shop’s profitability.

Hettinga says, “A lot of what we’re working on right now is reminding shops that we’re here as a viable parts source. It’s about getting the word out to shops, ‘hey you’re used to shopping on a visual diagram; here’s a way to do it.’”

FREE SERVICES HELP BOOST PROFITS Visitors to the Mighty Auto Parts booth learned about two business services designed to improve a shop’s profitability. The services are available to any tire dealer, according to Gary Vann, senior vice president of marketing for Mighty Distributing System of America Inc. The Performance Watch service is a free analysis of a shop’s preventive maintenance services designed to uncover sales opportunities. Comparative data is used to quantify the profit opportunities along with specific steps to capitalize on them. “The analysis looks at 20 categories of services and compares their performance to national averages, which reveals profit opportunities,” said Vann. He cited an example of a shop that sold seven batteries out of 216 oil changes in a single month, or 3%. The national average is 15%, which means 33 batteries should have been sold for a profit potential increase of $4,284.74. “This quantifies what the shop owner already knows. We put a number to it. Then come the solutions. Let’s train, incentivize and make batteries a part of inspections and see if we can get those sales up,” said Vann. The other free service is called Custom Vehicle Inspection Forms. A vehicle inspection form is customized with a shop’s logo, hours of operation and points of inspection. Five templates are available. ■ MTD December 2018

2018 AAPEX

2018 AAPEX: Resources, equipment and tools for the aftermarket By

Ann Neal and Joy Kopcha

nowing the vehicle issues that may be coming into their shops can help techs plan training, stock parts and have appropriate service tools ready. Such data is available at Technician Nation, a free online community. “Every user of a scan tool powered by Bosch is providing us with insight on vehicles worked on around the nation,” Alison Accavitti, Technician Nation publisher and marketing communications manager, told Modern Tire Dealer at the 2018 Automotive Aftermarket Product Expo (AAPEX). Robert Bosch LLC created Technician Nation to be a resource for addressing vehicle issues. The online and on-tool platform includes a dashboard aggregating nationwide service trends that can be segmented by geography, vehicle and code, based on vehicle scans from technicians using diagnostic tools powered by Bosch. The dashboard reveals trending vehicle issues in a shop’s area and can be used to identify if vehicle problems are trending locally or nationally and provide the best information to help properly diagnose the vehicle. Knowing the geographic occurrence of specific vehicle codes can help technicians to plan for tool and equipment purchases, to anticipate the training they will need, and to validate vehicle issues with customers. “There is no other dashboard that tells out-of-warranty vehicle service trends,” said Accavitti. Anyone can sign up to join the Technician Nation platform, and technicians who currently use a Bosch diagnostic tool or an OTC tool with Bosch hardware will have access to sign up for the e-newsletter through their current software.

Jack Ogden, senior product specialist for diagnostic product marketing, said the Technician Nation online resources drills down to specific vehicle trends from geographic location to trouble code.

promotions or accessing customer support. MyAdvance is available to aftermarket customers nationally. Via the MyAdvance (advancepro.com) web portal, Advance Auto Parts Inc. has created a one-stop tool to help professionals manage their businesses. MyAdvance was designed with feedback from customers, and provides access to more than 30 business programs and services. Key benefits include: mobile friendly capabilities for the shop owner or employee, the ability for customization for each shop based on its programs, an “expert corner” with training and business solution advice from leaders in the automotive aftermarket, and a feature where users can submit support requests and troubleshoot directly with the Advance staff. “The MyAdvance website improves the way professional customers interact with our team members, and enables them to interact digitally with Advance and among themselves in new ways,” said Walter Scott, senior vice president of professional marketing and programs.

A MANAGEMENT TOOL FROM ADVANCE AUTO PARTS

CarMD ENTERS THE B2B WORLD

Professional technicians across the country have a new tool to help them manage multiple facets of their business in a single spot, whether it’s ordering parts, offering

CarMD.com Corp. is jumping into the business-to-business market with its first product designed for the aftermarket, the CarMD Pro Scan. The hardware plugs into

Walter Scott said the new MyAdvance platforms helps the company better communicate with its professional technician customers.

a vehicle’s OBD port, and while a technician performs the customary visual inspection, the Pro Scan checks all of the vehicle’s systems for signs of a problem. When the scan is complete, the results are compiled into a report that provides an overview of the vehicle’s health. That report covers an overview of freeze frame, I/M status, network scan results, OBD II codes, pending DTCs, possible causes, upcoming maintenance and predicted diagnostics. It spots potential repairs before a warning light appears on the dashboard. Shops can customize the reports to feature their logo, and incorporate coupons for upcoming maintenance or service needs. There’s even an option for an instant coupon a consumer could use immediately on a needed repair. “As vehicles become more reliable, customers bring their cars into the shop less frequently, which is why it is vital to help shops capitalize on each visit,” said Jim Dykstra, vice president of business development and strategy for CarMD and CEO of Dytech Auto Group. “The CarMD Pro Scan solution is designed to help take care of customer cars more fully than with just a visual inspection by finding hidden work to drive sales.” CarMD has also partnered with Epicor Software Corp. Epicor’s Smart Inspection 2.0 will be integrated with the CarMD Pro Scan. MTD December 2018

Denso’s Joe Mejaly said the company is launching a new marketing catchphrase. “With Denso, you’re ready” tells consumers they can trust the quality and reliability of their auto parts.

EPICOR STREAMLINES THE INSPECTION PROCESS Epicor said its newest inspection software helps improve workflow in the shop while also equipping consumers with easier to understand repair information. “The Smart Inspection 2.0 solution helps service businesses grow by streamlining and digitizing several of the most time-intensive steps in an automotive service transaction,” said Stephen Gannon, senior director of automotive product management and development. “It also helps users both in the repair bay and at the service desk avoid mistakes and more quickly and accurately identify needed repairs.” Accessible via any mobile device, Smart Inspection 2.0 allows the user to start an inspection by scanning the vehicle identification number or manually entering a make, model and year. That information provides a database of specifications and part and labor lookups specific to the vehicle. Users also can document scratches or dents on the vehicle prior to service to prevent damage claims. Inspection results then are used to create a comprehensive estimate that can be printed or even emailed to a customer for approval. The pricing and availability of parts can be integrated, and the parts can be ordered with a single click after the customer approves the work.

DENSO CONTINUES EXPANSION In 2018 Denso Products and Services Americas Inc. added part numbers, invested in two new warehouses and made major improvements to a third to increase the company’s capacity by 30%. And all that growth came after the company set a sales record the year prior. President Hal Kato said in 2017 sales in North America exceeded $10 billion for the w w w . M o d e r n T i r e D e a l e r. c o m

Ben Johnson said Mitchell 1 has added a mobile vehicle inspection application to its Manager SE software.

first time. And there’s no plan to slow that momentum, company officials said. Globally, Denso has made a $3 billion investment in research and development related to automated driving, said Joe Mejaly, senior vice president of operations, sales and marketing for Denso. Mejaly also announced the company’s acquisition of Ease Simulation Inc., a Pennsylvania company that specializes in automotive diagnostics technology.

MITCHELL 1 SIMPLIFIES ADAS REPAIRS Mitchell 1 is working to make Advanced Driver Assistance System (ADAS) technologies easier for technicians to navigate. “The term ‘ADAS’ may not be immediately familiar to all shops, but everybody knows about blind-side monitoring, lane departure warnings and adaptive cruise control,” said Ben Johnson, director of product management for Mitchell 1. “But the complexity is going to increase exponentially and independent shops need to be ready.” In the Mitchell 1 ProDemand software, every bit of ADAS data has been housed in a single spot. A click of the “Driver Assist — ADAS Quick Link” button directs users to a table of all the driver assistance systems in a particular make and model of a vehicle. The dashboard view offers an overview of the related components, and information on whether those components need calibration, or if they require a special tool or scan tool to complete the job.

TENNECO TARGETS RIDE CONTROL ON PICKUPS Tenneco Inc. has designed a ride control product specifically for half-ton pickup trucks that might play nice on the roads during the week, but on the weekend need extra stability when pulling a boat, hauling a load of mulch or pushing a snow plow. The Monroe Magnum loaded strut assemblies will be available in early 2019 in

AAPEX brought about the unveiling of a new booth and combined presence for the merged Tenneco Inc. and FederalMogul LLC companies. Ethan Bregger, marketing manager for Tenneco in North America, showed off one of the combined assemblies on display, and said together the companies provide “complete, around-the-wheel coverage.”

eight SKUs. Fitments include the 2007-2017 Chevrolet Silverado 1500, 2006-2018 Dodge Ram 1500 4WD, 2004-2013 Ford F-150 4WD, and 2007-2018 Toyota Tundra. The assemblies will be engineered and assembled in the U.S. Monroe Magnum loaded strut assemblies feature the components for durability and exceptional ride characteristics under a wide range of loads. These include a premium, gas-charged Monroe Magnum strut featuring 10-stage, acceleration-sensitive damping technology (on most applications), nitrocarburized piston rod and PTFE-coated bearing; a variable-rate coil spring; OE-style upper strut mount and bearing; enhanceddesign dust boot; and jounce bumper.

GM ROLLS OUT PERKS FOR PARTS PURCHASES “We want to make sure we’re easy to do business with.” What does that mean for the owner of an independent tire store or automotive repair center? David Mestdagh, general director of global product at General Motors Co., said the company will roll out a new, simplified loyalty program to reward aftermarket shops for purchases of all GM parts. The “my GM Partner Perks” program is designed to reward independent service centers, body shops and fleets for their purchases of GM Genuine Parts and ACDelco, Chevrolet Performance and Chevrolet, Buick, GMC and Cadillac accessories. The program will debut in the first quarter of 2019. Mestdagh said a key component is that the buyer will receive “perks” for the purchase of GM parts no matter where they’re purchased. The program’s benefits include marketing sup-

2018 AAPEX

Dawn Gonzalez, marketing communications manager for Lumileds, is next to a vehicle retrofitted with Extreme Ultinon LED fog lamps and Ultinon LED lights.

Cliff Sewing says the new IB Pulse tester is small, compact and can be mounted on a wall.

port, purchase rewards, training and repair assistance and business support discounts.

steps. You scan the VIN of the car, scan the UPC of the battery and hit the start button.” When the test is complete, the IB Pulse displays the Interstate Batteries part numbers that fit the vehicle tested. “I’ve seen no other tester on the market that gives the battery part number,” said Sewing.

LUMILEDS HAS A NEW INSTALLER PROGRAM Lumileds LLC’s new installer program is designed to help shops sell upgraded vehicle lighting to consumers. The Philips Lighting Specialist Program runs to April 30, 2019. The Philips Lighting Specialist Program offers incentives for warehouse distributors (WDs), shops and consumers. The program focuses on the Philips X-tremeVision upgrade headlight and offers shops a $25 Visa gift card for every 10 pairs of Philips X-tremeVision upgrade headlights sold and gives shop customers a $10 mail-in rebate for each pair of Philips X-tremeVision headlights purchased. Lumileds displayed its line of LED lighting solutions for vehicles interiors and exteriors at AAPEX. The company says the bedrock of the LED line is the Philips Ultinon LEDs. Lumileds’ latest LED innovation, the Philips X-tremeUltinon LED Fog Lamp, is designed to be an extremely powerful, plug-and-play replacement for H8, H11, and H16 halogen fog bulbs.

NEW IB PULSE TESTS BATTERY IN JUST TWO STEPS The insights of 2,000 technicians guided the development of the new IB Pulse battery tester from Interstate Batteries Inc. Cliff Sewing, Interstate Batteries’ category manager of testing, said the company went to the field to find what technicians need in their battery testers. The result is a handheld tester that easily scans a vehicle identification number (VIN) and battery UPC to provide fast, accurate results. “A typical battery tester might have ten to fifteen steps in the screen flow. The IB Pulse completes the test in as few as two

ARCTICPRO MACHINES ARE SMALLER The latest ArcticPro air conditioning handling systems from Mahle Service Solutions are smaller than earlier versions. “These sleek, newly designed high-performance units are smaller in size than previous models taking up less space in automotive repair shops,” said Rich Wolf, general manager. “Mahle has set a new standard for the industry in servicing A/C machines with its new and most popular feature: an ergonomic, hinged cabinet service door for easy access to all internal components.” The newly designed machines include four units (ACX2180, ACX2180H, ACX2150 and ACX2120H) to recover, recycle and recharge vehicles equipped with R134a refrigerant. Two new units (ACX2280 and ACX2250) are available to service vehicles that are factory filled with the new R1234yf refrigerant.

DELPHI EXPANDS GDI SERVICE PROGRAM Delphi Technologies PLC has added gasoline direct injection (GDI) and multiport gas fuel injector testing equipment to its GDI service program in North America. The expansion coincides with the introduction of the Hartridge Excalibur GDI Master, which gives technicians the ability to test GDI and port fuel injection (PFI) up to 250-bar pressure, in test cycles as little as five minutes. “GDI market growth outpaces most other automotive categories, so quality

Delphi Technologies’ Mary Gustanski (left), senior vice president and chief technology officer, and Chad Smith, vice president of North America aftermarket, are shown with the new Excalibur GDI Master for testing GDI and PFI injectors.

parts and diagnostic equipment for GDI systems will be a must for garages to be competitive,” said Alex Ashmore, president, Delphi Technologies Aftermarket. Delphi currently offers around 100 GDI high pressure fuel pump SKUs in North America and plans to expand. In addition, the company announced plans to reach a full-line steering and suspension offering by 2020 and a more comprehensive suite of engine sensors.

NGK ADDS PRODUCTS AND A BRAND NGK Spark Plugs (U.S.A.) Inc. introduced a spark plug, a sensor line and a vehicle electronics brand. The new product is NGK Ruthenium HX spark plugs. The new line is NTK Technical Sensors. The new brand is WVE Vehicle Electronics. The company says the Ruthenium HX is the latest in high-ignitability spark plug technology comprised of the precious metal ruthenium. This new product contains 25 part numbers covering over 200 million vehicles currently in operation. In addition, NGK is launching a spark plug service interval resource by including original equipment manufacturer suggested spark plug replacement recommendations in its ngksparkplugs.com parts finder and the company’s Aces catalog content. NGK Spark Plugs has also expanded its NTK product portfolio beyond oxygen sensors. The NTK Technical Sensors portfolio contains position, pressure, speed, temperature, fluid level, emissions and specialty sensors. The new WVE Vehicle Electronics brand offers bumper-to-bumper products covering electrical components for both domestic and import vehicles. MTD December 2018

Tanya Hines said Johnson Controls’ YouTube channel and website presents information to help technicians translate the features of AGM batteries into benefits that resonate with consumers.

JOHNSON CONTROLS ANSWERS AGM QUESTIONS Focus group research conducted by Johnson Controls International plc found that awareness and understanding of Absorbed Glass-Mat (AGM) batteries are low even though the technology has been available for 30 years. The research also found that difficulty articulating the benefits of AGM batteries and a misperception about the price contributes to technicians’ reluctance to recommend AGM batteries when the benefits would solve many of their customers’ frustrations about battery reliability, safety and durability. The focus group provided insights between what consumers want and what technicians are recommending, according to Tanya Hines, vice president of global sales and marketing.

Paul Wise said the new PQ Pro premium brake pad line has more than 903 SKUs, covering 74 vehicle makes and more than 1,500 models from 1961-2019.

Johnson Controls has resources designed to help technicians translate the technical features of AGM batteries into consumer benefits: The Battery Shop YouTube channel and the AutoBatteries.com website. “By understanding the benefits of AGM, they can address consumer needs and frustrations,” Hines said.

CENTRIC PARTS HAS NEW PREMIUM BRAKE PAD The Centric Parts division of APC Automotive Technologies LLC has released Posi Quiet Pro, a premium performance disc brake pad. Paul Wise, vice president of corporate marketing and communications for APC, said the flagship brake pad line, known as PQ Pro for short, addresses key service issues such as brake fade, weak braking response, excessive noise and time consuming break-in procedures. Every set of PQ Pro brake pads is backed

Permatex’s Donny Braga said SprayNine Grez-Off Parts Cleaner and Degreaser is ideal for the two- or threebay shop that does not want to invest in a professional parts cleaning system.

by a 1-year Centric-Assured Roadside Assistance Guarantee. “The installer has no comebacks, no complaints and no worries,” said Wise.

PERMATEX OFFERS DEGREASER AND PARTS CLEANER New Spray-Nine Grez-Off Parts Cleaner and Degreaser is the only product in the market that can be used as both a traditional spray degreaser and a parts cleaner solution, according to Donny Braga, senior marketing and product manager for the Permatex division of ITW (Illinois Tool Works Inc.). He said the biodegradable and aqueous-based formulation is a much safer alternative than traditional solvent-based degreasers and parts cleaners. The cleaner also features a proprietary corrosion inhibiting formula that prevents flash rusting. It is non-flammable and does not generate fumes. ■

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ROFITABILITY

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For what drives you.

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

Ann Neal

Degenhardt Tire helps growers see the value in proper inflation THE LATEST AG TIRES CARRY MORE WEIGHT AND REDUCE COMPACTION 60

PHOTO: ALLIANCE

Alton Degenhardt installs an Alliance brand VF tire on a tractor at McHugh Farms.

hen Alton Degenhardt suggested lower inflation pressures of farm equipment tires would reduce soil compaction, his customers were skeptical. “I had guys tell me it’s never going to work,” says Degenhardt, a third-generation member of the family that owns and operates Degenhardt Tire Inc. in western Wisconsin. “They would say, ‘I don’t know, this seems like a bunch of hocus-pocus.’” The skeptics have since become believers thanks to technology that allows a tire to carry the same loads at lower inflation pressures or heavier loads at standard inflation pressures than a conventional bias or radial ag tire in the same size. “Several guys told me they drove around with a full load of corn and beans trying to leave ruts in the field, and they couldn’t,” says Degenhardt. “They never thought that a few pounds of air would make such a difference. They are seeing that there is value in proper air inflation.” Degenhardt explains that an IF (increased flexion) tire is designed to carry the same load as a standard tire at 20% lower air pressure or carry 20% higher loads at the same air pressure. A VF (very high flexion) tire can carry the same load at 40% lower air pressure or carry 40% more load at identical pressure. IF and VF technology dates back to the mid-2000s. Michelin was the first tire manufacturer to introduce high-flexing tires in North America with its AxioBib tire, according to David Graden, operational marketing manager-agriculture for Michelin North America Inc. “Running at a lower air pressure reduces cost of production by improving traction and fuel economy while reducing slip and soil compaction,” says Graden. “Farm machinery has continued to get larger, helping farmers to be more efficient and productive. But with larger, heavier equipment has also come the risk of increased soil compaction which can significantly impact crop growth and yield performance.” Graden says growers can take proactive steps to manage the risk by being aware of the factors that cause compaction and how to minimize it. “The primary cause is contact pressure, which is exerted by the pressure of tires on the soil surface. Numerous studies have shown the benefits of IF MTD December 2018

and VF tires that can operate at a lower air pressure under increased loads, compared to standard radial tire technology.” Until a couple of years ago, growers were showing limited interest in IF and VF tires. Bill Haney, agricultural and industrial sales manager for Apollo Vredestein Tyres North America Inc., notes that IF tires require close monitoring of air pressure. “VF tires answered the requirement for higher load carrying capacity at more standard air pressures,” he says. In addition, the initial technical specs for IF and VF tires called for wider rims, which made them expensive in the replacement market. “Since then the specifications in many cases changed to allow standard rims,” says Haney. “The point is that lower air pressures are possible in the field for use with ever increasing tractor horsepower and weight. Lower air pressures are the goal for reducing soil compaction. VF tires are a higher load version of the IF concept.”

overnight waiting for a tire. “I’ve got pretty much any farm tire you could want on hand. Anything round and rubber, big and small, we’ve got it all,” says Degenhardt.

POUNDS ON THE GROUND Degenhardt is working closely with Patrick McHugh, a grower who is conducting a soil compaction study on his farm. Compaction interferes with a root’s ability to grow into the soil and extract the nutrients and moisture a plant needs. Roots and water cannot infiltrate compacted soil, creating problems for growers. McHugh uses a device called a penetrometer to measure the resistance in soil in foot pounds. The key metric is the pounds per square inch exerted by a tire

ALSO IN CTD Farm tire market shares........................ 70 AG Tire Talk: Proper tractor ballast..... 71 Commercially viable ............................. 76 the portable scales in the fall of 2017. He began carrying them with him on visits to customers’ farms, where he weighed equipment and explained how tire pressure could reduce compaction. Degenhardt uses footprint boards, which he makes out of white plywood, to demonstrate to customers how lower air pressure expands a tire’s contact area. The tire is positioned on the board before and after the pressure is lowered and sprayed with black paint to show the number of bars on the footprint board. More bars

There are two Degenhardt Tire stores serving growers in Wisconsin. Reuben Degenhardt, Alton’s grandfather, opened a store in Norwalk in 1962. A store in West Salem, about 25 miles away, followed. Today Reuben’s sons, Jim and Pete, own the company. Jim is Alton’s father. There are five employees, plus Alton Degenhardt’s mother, Roberta, his aunt, Nicki, and two cousins, Jordan and Zach. The retread shop, which has capacity for up to 100 tires a week, uses the Oliver process to retread skid steer and medium truck tires for agricultural use. The two stores do not offer mechanical service and focus entirely on tires. “We’ll do anything from a 410/350x4 tire for a lawn cart all the way up to a 29.5/R25 OTR tire. And everything in between from tractors, combines, skids steers, and graders,” says Degenhardt. The company also offers mobile road service. Degenhardt’s uncle services the area around the Norwalk store, and Degenhardt covers a roughly 80-mile radius around the West Salem store. A typical day is spent on the road making service calls for customers. “I can change any tire on the road, but we cater to the farmers after hours for emergencies, especially during planting and harvesting.” Local growers know that if they have an issue, they are not going to be down w w w . M o d e r n T i r e D e a l e r. c o m

PHOTO: ALLIANCE

FOCUS ON SERVICE

Alton Degenhardt places portable scales under each tractor tire. Knowing the weight exerted by a tire on the surface of soil enables him to calculate the air pressure needed to optimize the tractor’s performance and reduce compaction. He also uses the scales to determine the correct weight split of the tractor.

on the surface of soil. “I needed to know pounds per square inch. When you first talk to tire people, they talk about how many pounds you put into the tire. Well, I talk about how many pounds are on the ground,” says McHugh. As part of the study, McHugh has replaced standard radial ag tires on one of his tractors, a Massey Ferguson 8680, with VF tires from Alliance Tires Americas Inc. He is measuring and comparing the amount of compaction under the standard and VF tires. “You need to know the exact weight of that equipment and tire,” says McHugh. Degenhardt believes he is the only tire dealer in the area using portable scales to weigh farm equipment. He purchased

mean more of the tire is on the ground. “You can see the difference in the number of bars on the footprint board and in the way the machine performs,” he says. In the spring of 2018, interest in the portable scales “just blew up” along with Degenhardt’s sales of tires for reducing soil compaction. “You want to get the most value for your dollar out of your tires, so that’s why weighing and making sure your weight splits are correct sets that tire and tractor up for optimum performance,” says Degenhardt. “That’s where you are going to get less soil compaction, better traction and minimal amount of slip percentage. You’re getting more power to the ground and getting more work done with less effort.”

Farm Tires For peak performance, the typical mechanical front wheel drive tractor weight split is 60% on the rear axle and 40% on the front axle. “I usually try to get 125 to 136 pounds per 1 PTO (power take off) HP (horsepower),” says Degenhardt.

After weighing the tractor, Alton Degenhardt (left) discusses the correct inflation pressure with his customer, Patrick McHugh, who farms 2,000 acres.

PHOTO: ALLIANCE

Degenhardt first learned about a tire’s effect on soil compaction at a dealer meeting hosted by Titan International Inc. about two years ago. The company’s LSW (Low Sidewall) technology is exclusive to Titan and Goodyear Farm brand tires. Like VF tires, LSW tires can carry 40% higher loads at the same inflation pressure as standard tires, or they can carry the same load as standard tires at 40% lower inflation pressures. But instead of more flexibility in the sidewalls, LSW tires have larger wheel rims and lower sidewalls. LSW tires were developed not only to reduce compaction but to minimize road lope (swaying and bouncing during road transport) and power hop (bouncing while pulling in the field), according to Scott Sloan, ag product manager/global LSW at Titan. “With the LSW tire’s sidewall being physically shorter, we can run lower inflation pressures.” Sloan says super single tires, which replace dual tires on farm equipment, were developed to reduce soil compaction. Super single tires use both LSW and VF technologies. The company’s most popular sizes are the LSW1250/35R46 and LSW1400/30R46, which is the world’s largest farm tire, according to Sloan. “Replacing two tires on the corner of a tractor with one big tire gives you a lot more surface area, contact area and a lot better flotation and less compaction,” he says. Degenhardt meets the preferences of individual customers with Titan’s super single tires and Alliance’s IF and VF tires. He says he likes Titan’s Goodyear Farm line because of the unique LSW technology and Alliance tires because they are the only ones in the market with all steel casings and IF/VF technology in standard sizes. “I’ve done a lot of playing around with air pressure, and it really is the final piece in a lot of situations,” he says. “With the Titan LSW for the super singles and Alliance with the duals I was able to bring everything home,” says Degenhardt. “It all comes down to looking at what you have for a footprint now and how many

PHOTO: ALLIANCE

OPTIONS FOR GROWERS

Alton Degenhardt says correct inflation pressure is helping growers get the most value out of their agricultural tires.

more square inches per tire you gain on the ground by going to an IF or VF tire. A guy who wants his duals can have his duals, and a super singles guy can have his super singles.” For example, one of Degenhardt’s customers puts dual tires on his equipment for planting but removes them for sidedressing (fertilizer application). “LSW wasn’t going to work for him. So I have Alliance VF duals on the back of his tractor and the Alliance IF duals on the front.” Using both IF and VF tires on the same machine enables Degenhardt to make sure the weight distribution across each axle is correct. The weight split depends on the size of the tractor and the amount of weight it will be carrying. In this case, using a VF tire with a heavier load index on the front of the tractor was not necessary. “You are taking more power and effort than what is required so you are decreasing the efficiency of your tractor,” says Degenhardt. “If you don’t balance the tractor to get the tires to perform, it’s a waste.” Another customer had a pair of duals on the front of his tractor. “We put singles on the front. I weighed it when we set it up. I dropped his air pressure down in the back. He was running 25 psi; he’s running 15 now and 12 in the front,” says Degenhardt. “He told me they could never go full speed on the road because it hopped so badly. But with the air pressure adjusted correctly, he can wind it out all the way and run it at top speed,” says Degenhardt.

The pricing of the two types of tires is comparable. “You can put LSWs on a tractor or put duals on a tractor for about the same amount of money,” says Degenhardt.

LOWERING PRODUCTION COSTS Larger farm equipment is helping to boost efficiency but it may cause soil compaction that can reduce yield. “Equipment in the last 20 years or so has really gotten big. The size of equipment wasn’t an issue when I was a kid,” says the 39-year-old McHugh. McHugh has standard radial and bias tires on his other equipment, which includes four tractors used in the field, two combines, a sprayer, several planters and four semi tractor-trailers. He grows corn, soybeans, rye and wheat. His approximately 2,000-acre farm also includes organic production of heirloom corn varieties and small grains for a local distillery. McHugh says road and field travel is smoother with the Alliance VF tires compared to standard ag tires. The Alliance tires also proved themselves as far as reducing compaction. “We see less of a footprint in the field, not only visually but scientifically,” says McHugh. “The tractor we have the VF tires on actually weighs more than the other tractor. From what I’m seeing from my studies, we’re leaving less of a footprint with the heavier tractor because of the tires. It’s nice to see this technology. The pros of tires are that they are much lower maintenance compared to a track system.” In addition to traditional metrics like bushels per acre, growers like McHugh are focused on lowering their production costs. For example, controlling wheel MTD December 2018

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Farm Tires PHOTO: ALLIANCE

slippage, which occurs when the tires are turning faster than the ground speed of the tractor, helps save fuel. Lowering inflation pressure enlarges the tire’s footprint, which increases traction and fuel economy and lessens compaction. “Slip is wasted horsepower,” says Degenhardt. “The less slip percentage you have, the less wasted fuel and the less wear and tear on the tractor. With less slip percentage you are going to burn less fuel per hour, there’s going to be less wear and tear on the machine.” Degenhardt tells his customers they can’t do anything about rain and sunshine, but they can minimize their input costs by using properly inflated tires. “The way I look at it, they are going to save money on fuel and potentially save money on repairs. They can minimize input costs with more efficiency, so they cover more acres per hour and use less fuel per hour.” James Crouch is national product manager-agriculture for Alliance Tire Americas. He says farmers are starting to see the advantages of IF and VF tires. “The opportunity to choose between benefits — carrying more load at the same inflation pressure or carrying the same load at a lower inflation pressure — is really powerful. As farmers get more engaged in improving the efficiency of every aspect of their operations, they are including tire choice and inflation pressure along with

Alliance says the Agriflex 372 IF 1250/50R32 CFO for harvesters, grain carts, and other heavy machinery, which is nearly 7 feet tall with load capacity of up to 22,480 pounds at 46 psi, reduces soil compaction at harvest.

their decisions on other inputs, from seed to fertilizer to chemicals, that affect crop yields and profitability.” Crouch notes that there are substantially more options for IF/VF tires than ever before. “Just from the Alliance perspective, we have more than tripled our IF/VF offer this year alone. All the major manufacturers seem to have clearly aligned their future product plans to bring low-pressure solutions to as many areas as possible.” The implement market has transitioned from the demand being super-low-cost commodity bias tires to IF/VF radials seemingly overnight, according to Crouch. “For years, there has been a demand for something better than a cheap bias because of the incredible loads imposed on implements now, as well as the amount of roading they do. When a large planter or tillage tool is folded up into the transportation configuration, the load placed on the primary tires is incredible. A bias tire simply is not built to withstand it. We believe that the trend to IF/VF implement tires is going to dramatically increase over the next few years as more brands offer these solutions to the market.”

PHOTO: BKT

NEW PRODUCTS PLANNED

The Agrimax V-Flecto from BKT is designed to resist wear even at low operating pressure and features reduced soil compaction, lower operating costs and increased load capacity.

Modern Tire Dealer asked manufacturers for an update on products designed to help reduce soil compaction. Along with Crouch from Alliance, Haney from Apollo Vredestein, Graden from Michelin and Sloan from Titan, five other tire makers responded. They are: Dave Paulk, managerfield technical services for Balkrishna Industries Ltd. (BKT); Brad Harris, manager of global agricultural field engineering for the Firestone Ag unit of Bridgestone Americas Tire Operations LLC; James Enyart, manager of technical services for CEAT Specialty Tires (Cavi Elettrici e Affini Torino Ltd. (CEAT) is part of the RPG Group); Rick Harris, regional manager-U.S. for Global Rubber Industries Pvt. Ltd. (GRI); and Norberto Herbener, OEM technical manager for Trelleborg Wheel Systems Americas Inc.

Not all respondents have IF/VF tires on the market yet. Enyart says CEAT has plans for IF and VF production to reach the market late in 2019. Harris says GRI will have the capacity to produce IF/ VF tires at its Sri Lanka plant by early 2019. Continental Corp. is ramping up development and production of VF tires in Lousado, Portugal, with an anticipated launch at the end of 2019. “The share of high-flexion tires has increased over the last few years and trends show a larger growth in the upcoming years,” says Andreas Emde from the product development and product industrialization for agriculture tires group at Continental Commercial Specialty Tires. “More and more machines have been equipped with high-flexion tires by original equipment manufacturers and now these tires need to be exchanged. For our market launch, we will focus on the main tractor sizes as well as on harvester steering tires.”

DEMAND FOR IMPLEMENT TIRES MTD asked manufacturers if demand for IF/VF tires was increasing in any sizes, applications or implements and if so, why? Their responses follow. Alliance: IF and VF tires have had a long, steady increase in the tractor and combine segment—big, high-visibility tires on machinery where it’s easy to see the benefit of greater load-carrying capacity and lower inflation rates. Alliance has introduced tires in those categories, all the way up to a massive IF 1250/50R32 CFO combine tire. Over the past few years, we’ve also added an emphasis on IF and VF row crop tires for self-propelled sprayers. That’s another application where the added load capacity and a longer, flatter footprint really make a huge difference. What’s really exciting now is our expansion into implement sizes. Air seeders, planters, carts, and even tillage equipment can be extremely heavy, which causes soil compaction. Until recently, farmers could MTD December 2018

Farm Tires use IF, VF and flotation tires to minimize the compaction caused by their tractors, combines, grain carts and manure tanks but then go back out on the field with an air seeder that weighs 20,000 or more pounds, running on highly inflated tires, and cause the exact problem they had been trying to avoid. With the introduction of Alliance VF implement tires over the past year or so, farmers can go all season on low inflation pressure and minimize their compaction from spring fieldwork through harvest. Apollo Vredestein: Both IF and VF are increasing in popularity for very large tractors. Typical applications are 4WD (four-wheel drive) tractors (8 equal size tires) and large MFWD (mechanical front wheel drive) tractors, many coming here from Europe. Implements such as grain carts and heavy tillage tools are also starting to use them.

PHOTO: BRIDGESTONE

Bridgestone says its Destination Turf radial implement tire combines its IF and VF technologies with a new turf tread design that deflects stubble and absorbs more damage.

ing for more applications, fitments and implements. Today’s latest tire technologies enable farmers to carry a heavier load at the same air pressure compared to standard radial technology, or the same load at a lower pressure. In addition, a larger tire footprint allows for better traction in the field, less slippage and improved fuel economy. Michelin offers a portfolio of IF and VF tires for tractors, sprayers and harvest machines in a selection of sizes. Trelleborg: All tire manufacturers are continuously introducing more sizes under IF and VF technology. As new equipment is launched in the market and their power and weight increase, they require larger tires and/or tires that can hold more load. The fastest segment adopting the IF/VF technology is the sprayers, followed by large tractors.

ADVANCEMENTS IN TECHNOLOGY MTD also asked manufacturers for an update on their latest IF and VF technologies. Alliance: IF and VF tires are very demanding to design and manufacture; they require state-of-the-art compounds, and everything from the bead to the tread has to be built to exacting standards. At Alliance, we’ve combined the expertise we’ve developed in IF and VF tires with our decades of leadership in flotation tire technology to help pioneer the VF flotation tire category. To complement our IF and VF R-1 and R-1W tires, we introduced the Alliance The contact patch of the secondgeneration CerexBib 2 from Michelin expands up to 35%, which helps reduce soil compaction and protect the soil for future harvests.

PHOTO: MICHELIN

BKT: The demand for IF/VF tires seems to continue gaining steam. More are being used as original equipment on implements and sprayers. Most heavy self-propelled sprayers are coming with IF or VF tires to carry the heavy weight and 40 mph speeds that they run. More IF and VF tires are being used on implements as they get bigger and heavier. The sizes are taller and wider. The demand for these tires will only increase as equipment changes. Bridgestone: IF/VF tires are more often used in applications that require heavy axle loads, like high-clearance sprayers, combines, grain carts, and transport tires on large implements. As customers require more and more productivity from the equipment they purchase, equipment

manufacturers are meeting the need for more capacity. When equipment gets bigger or has more capacity, the axle weights increase. Heavier loads require either larger tires or an increase in inflation pressure to carry the load. A high-clearance sprayer with 120-foot booms and 1,200 gallons of liquid requires each tire to carry 12,000 to 14,000 pounds. Class 8 and 9 combines’ front axle weight can exceed 65,000 pounds with a 40-foot draper platform or 16-row corn head with 400 bushels of crop in the bin. Implements that are 50- to 60-feet wide in the field have to fold narrower for road transport, which transfers the implement’s weight to the four tires. These applications are using IF or VF tires to carry the increased weights while minimizing the need for more inflation pressure. CEAT: This technology fits the self-propelled row crop sprayer market extremely well with the development of GMO row crops. Due to the additional trips across the fields with herbicide applications, the row crop sprayers have increased in size to improve efficiency and help get the applications completed on a more timely basis. These sprayers are running the same tracks with each application so it became much more important to carry these large loads and to minimize compaction. Implement tires are a more recent development for the IF and VF tires. The largest planters along with other heavy implements have always had trouble carrying these big loads. Larger equipment has led to adding additional tires to manage these loads. Incorporating the IF and VF tires on these large, heavy implements can provide the load carrying capacity and reduce the compaction compared to the standard bias or radial implement tires. Planting windows seem to be tighter than ever and reducing down time has become more critical. Adopting the IF and VF tires for these large planters does reduce potential down time and of course allows the planting operations to proceed under less than ideal conditions. GRI: IF/VF started with row crop, sprayer and flotation R1 and is expanding in all sizes including radial implements. Manufacturers are now adding more sizes as IF/VF advantages increase service life and reduce overweight failures/adjustments. Michelin: Demand is increas-

MTD December 2018

Titan says the Goodyear-branded LSW1400 is a super single VF tire designed to eliminate power hop and road lope, reduce soil compaction and improve flotation.

and grain carts, the grain bin is filled and emptied in the field, changing the axle weight in a cyclical pattern. IF/CFO tires are designed to carry the heavier loads found on the Class 8 and 9 combines without needing 50 to 60 psi. These tires are also used on single-axle 1,300-bushel grain carts. Michelin: New central tire inflation systems (CTIS) are being used in conjunction with IF and VF tires. CTIS enables a tractor operator to change tire pressures on the go for optimum performance when changing from road conditions to field conditions. Footprint boards placed under the tires will showcase differences in tire footprints from road to field. The tire pressure can be

adjusted with the touch of a button on the tractor’s control panel. CTIS is widely used in Europe and has been increasingly used in North America to minimize compaction and increase traction, fuel economy and tire performance. Trelleborg: In addition to new IF and VF tire sizes released, Trelleborg is advancing this range by combining it with Trelleborg technology. Each new tire is developed with the patented ProgressiveTraction design to improve traction, inter-lug terraces for superior self-cleaning, and side wings for a wider footprint. A wider footprint on the same tire size reduces pressure on the ground and directly reduces soil compaction. ■

The VF sizes in Trelleborg’s new TM3000 range are designed to carry a high load capacity while reducing soil compaction during spreading operations.

PHOTO: APOLLO VREDESTEIN

PHOTO: TRELLEBORG

Agriflex+ 389, which is the world’s first VF flotation tire. This tire can operate at up to 30% less pressure than a standard radial flotation tire, and it is also optimized for use with a central tire inflation system (CTIS). We are looking ahead and seeing how we can further reduce compaction, and combining our advanced tire technology with CTIS is one of the next big steps. Apollo Vredestein: Vredestein has embraced the VF technology, offering Vredestein Traxion Optimall as our VF tire. The Traxion Optimall, introduced in November 2017, allows lower inflation pressure in the field and a larger footprint than our current IF offerings. BKT: BKT has a VF sprayer tire (Spargo) that is rated to run at 40 mph. It is also rated to carry the heavy weight needed for sprayers. We have added several new sizes to this lineup. We make IF tires in the Rib 713 (radial implements) in 15-inch sizes. We make VF tires in the SR713 in a couple of 22.5-inch sizes. We are making a couple of IF/VF sizes in the AW711 (radial implement) in 17- and 18-inch sizes. We continue to add sizes to these groups as demand increases for them. BKT’s Agrimax Force is an IF rated tire made for higher horsepower tractors and rated to run at 40 mph. The Agrimax V-Flecto is a new VF tractor tire that BKT is building with lower aspect ratios. We continue to add sizes as needed. Bridgestone: The latest advancement in the technology has been the release of IF/CFO tires. CFO stands for Cyclic Field Operations, which is the service found on combines and grain carts. On combines

PHOTO: TITAN

Farm Tires

The Vredestein Traxion Optimall has a high-tech rubber compound in the shoulder area to support the carcass at low pressure for extreme deflection.

MTD December 2018

BETTER VALUE. SMARTER CHOICE.

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MORE OPPORTUNITIES. You’ve helped your farm tire customers reduce soil compaction and improve performance with IF and VF technology on their tractors and combines. Now take them to a whole new level with cutting-edge Alliance Tire Group (ATG) technology that brings extra flexibility to nearly every wheel on their farms. From the massive Alliance Agriflex 372 1250/50R32 IF tire for combines and grain carts to the fast flotation Alliance 389 and the new Alliance Agriflex+ 398 MPT, a high-speed, high-flotation replacement for truck duals.

Add that full line of IF and VF premium farm tires to more than 2,000 Alliance, Galaxy and Primex SKUs as well as the Aeolus truck tire line and you’ve got more opportunities to earn farmers’ business. And talk to your ATG representative today for spring dating terms that can add more opportunities for profit, too.

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Market Analysis

Farm tire market share BKT AND FIRESTONE REMAIN THE TOP 2 REPLACEMENT BRANDS

Bob Ulrich increasing their market share in bias tires versus the Chinese. Premium radials continue in popularity, and some newer ‘value’ radials are closing the price gap with bias tractor tires — just as passenger tires went through similar changes in the 1980’s.” Modern Tire Dealer estimates radials make up 42% of the replacement rear farm tire segment, and 37% of the OE rear farm tire segment. BKT USA Inc., Alliance Tire Americas Inc., Titan International Inc. (manufacturer of Goodyear and Titan farm tires)

arm tire market share in the U.S. is being div vie d up among more brands than ever before. In the next few years, it wouldn’t be surprising to see Continental, GRI, Petlas, Vredestein and Maxam agricultural tires represented on our lists. “There are newer tire manufacturers and products, which are effecting our mix,” says Bill Haney, regional manager for the Northeast and Canada, Apollo Vredestein Tires Inc. “Indian manufacturers seem to be

and CEAT Specialty Tires Inc. increased their farm tire unit sales significantly over the last two years.

OUTLOOK IN 2019 Following strong original equipment sales growth in

2018 U.S. OE AND REPLACEMENT FARM TIRE MARKET SHARES RADIAL REAR OE 2018 shipments: 190,000 Firestone....................... 37.5% Goodyear ...................... 32.5% Michelin........................ 13.0% BKT .................................. 5.5% Titan................................. 5.0% Alliance........................... 2.0% Trelleborg ....................... 2.0% Mitas ............................... 1.0% Others.............................. 1.5% Total:............................ 100.0%

SMALL FARM OE 2018 shipments: 302,000 Goodyear ...................... 31.0% Titan............................... 19.0% Firestone....................... 14.0% BKT ................................ 11.0% Carlisle .......................... 10.5% Alliance........................... 8.5% American Farmer .......... 2.0% Trelleborg ....................... 1.5% Others.............................. 2.5% Total:............................ 100.0%

BIAS REAR OE 2018 shipments : 310,000 Firestone....................... 28.5% Titan............................... 35.0% Goodyear ...................... 25.0% Alliance........................... 7.0% BKT .................................. 1.5% Trelleborg ....................... 1.0% Others.............................. 2.0% Total:............................ 100.0%

RADIAL REAR REPLACEMENT 2018 shipments: 325,000 BKT ................................ 26.0% Firestone....................... 25.0% Michelin........................ 16.0% Goodyear ...................... 14.0% Alliance........................... 7.5% Titan................................. 5.0% Trelleborg ....................... 1.5% CEAT ................................ 1.0% Harvest King................... 1.0% Mitas ............................... 1.0% Others.............................. 2.0% Total................................ 100%

SOURCE: MODERN TIRE DEALER

BIAS REAR REPLACEMENT 2018 shipments: 450,000 BKT ................................ 38.0% Firestone....................... 22.0% Alliance......................... 11.5% Goodyear ........................ 7.0% Harvest King................... 7.0% Titan................................. 5.0% Carlisle ............................ 2.5% Trelleborg ....................... 2.0% American Farmer .......... 1.0% CEAT ................................ 1.0% Others.............................. 3.0% Total:............................ 100.0% SMALL FARM REPLACEMENT 2018 shipments: 1.3 million Firestone....................... 21.0% BKT ................................ 17.5% Goodyear ...................... 16.0% Titan............................... 15.0% Carlisle .......................... 11.0% Harvest King................. 10.0% Alliance........................... 4.0% American Farmer .......... 1.5% Trelleborg ....................... 1.5% Deestone ........................ 1.0% Others.............................. 1.5%

2017 and 2018, what will the replacement ag tire environment look like in 2019? More of the same, say two tire companies, although they both admit the uncertainty surrounding tariffs make accurate predictions difficult. “Overall crop production in 2018 has been above average in the U.S., and we hope for the same in 2019,” says Jim Enyart, field engineering manager for North America, CEAT Specialty Tires. “Yields, carry-overs, strength of the dollar as well as tariff uncertainties continue to exert pricing pressure on the major crops. “Net returns will, of course, depend upon the global tariffs situation, which remains volatile.” “Net farm income is forecasted to decline in 2018 and would be the fourth consecutive yearly decline,” says Bill Dashiell, senior vice president of TBC Corp.’s Commercial Tire Division. “Commodity prices remain challenging in part with the uncertainty regarding a trade war. “Fortunately for tire dealers, corn, cotton, and soybean production is expected to be at or slightly over prior year so tires are still being replaced at good volume.” ■ MTD December 2018

A G T i r e Ta l k

Proper tractor ballast THE RESULT IS IMPROVED TRACTION AND REDUCED SLIPPAGE

James Tuschner

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

QUESTION: In the 100-plus horsepower tractor segment, how does the grower properly ballast a tractor? In addition, what is the impact on tire traction and soil compaction?

Dave Paulk: manager of field technical services, BKT USA Inc.: There are several important reasons for using ballast on tractors. Adding weight where required will improve traction and reduce slippage. Managing the ballast and tire inflation pressures can maximize traction, minimize w w w . M o d e r n T i r e D e a l e r. c o m

compaction, increase the life of the tractor drivetrain, and increase productivity. There are general guidelines for ballasting a tractor based on the type of equipment being used. A Mechanical Front Wheel Drive (MFWD) tractor should weigh 120-145 pounds per PTO horsepower. 130 pounds is a common weight used per PTO horsepower. The weight split should be 35-40% of the weight in the front, and 60-65% of the weight to the rear. Some manufacturers recommend a 35-65% weight split as it makes it easier to control power hop. Implement

dealers have calculators to best determine weights and weight splits based on the type of equipment being used and recommended by the manufacturer. Cast weights and liquid can be used to ballast tractors. Both have pros and cons. Cast weights on MFWDs and 4WDs are easier to work with if power hop becomes an issue. Cast weights are the most convenient and can be changed according to ballasting needs. Once MFWD tractors are set up with the proper weights and distributions, they can basically use any type of implement without

A G T i r e Ta l k having to change weight distributions. The exceptions could be heavy implements on the three-point hitch or implements that place large loads on the drawbar such as rippers. These lighten the front end and may require more front weight. There are potential problems that can be discarded by the correct tractor ballast. If tractors are under ballasted, there is too much slippage; 5-15% slippage is considered in the normal range with 8% slippage considered optimum. Too much slippage effects fuel consumption, field operating time, and tire wear. Over ballasting also has a potential for problems. This can cause tire failures by tires slipping on the wheel, and lug cracking. It can also cause drivetrain problems, increase soil compaction, and reduce efficiency.

we design tires to be filled with air, not liquid. So when you add liquid to a tire, you’re reducing the tire’s flexibility and performance, and deforming the shape of the tire. That can lead to irregular wear in the center of the tread, a harder ride, and significantly reduced sidewall flex. From a performance perspective, you’re turning a radial tire back into a bias.

James Crouch, national agriculture product manager, Alliance Tire Americas Inc.: It takes a certain amount of weight for a tractor to transfer one horsepower of energy from the engine to the ground — figure 130 to 140 pounds per PTO horsepower for front-wheel assist (MFWD) tractors and 95 to 110 pounds per PTO horsepower for 4WD tractors. That often requires a little extra weight, which is called ballast. If you have too little weight, your tractor isn’t working as efficiently as it should. Your slip increases and you just aren’t getting all the power you paid for when you bought that machine. If you have too much weight, your soil compaction increases and your fuel efficiency can be reduced. And if the weight is poorly balanced, you can lose efficiency and experience power hop. Liquid ballast in the tire is a popular way to add weight to the tractor. However,

DAVID GRADEN, MICHELIN NORTH AMERICA

“LESS TRACTION EQUALS HIGHER SLIP, MORE FUEL CONSUMED, GREATER SOIL COMPACTION, ROUGHER RIDE, AND ULTIMATELY A VERY NEGATIVE EFFECT ON YIELD.” The bottom line is that if you’ve paid good money for horsepower, proper ballast is essential to make sure you’re getting your money’s worth. And if you’ve invested in radial tires, that ballast should really be achieved with cast iron weights so those tires can perform the way they were designed to. That way, you get the most out of your tractor and your tires. Harm-Hendrik Lange, agriculture tires field engineer in North America, Continental Tire the Americas LLC: The right ballasting for tractors depends on many factors. Generally speaking though, the tractor should be as least ballasted as possible, if the ballast is not really needed. Each pound that needs to be moved forward needs energy during acceleration, creates

CONTINENTAL TIRE’S RECOMMENDATIONS ON PROPER BALLAST Situation

Advice

Trailer work, spraying, Try to keep the tractor as light as possible and only use fertilizer work, and counterweights if needed for re-balancing the vehicle crop carrying

Heavy soil work (tillage, plowing, cultivator work)

Use ballast if needed – if during soil work your slip rate exceeds 20%, try to add ballast stepwise and observe how the behavior of the vehicle changes

All work – sometimes it is possible to keep a light ballasted status as a compromise

This is more so the case if you have less transport work and maximum speeds below 22 mph, because the additional fuel consumption for the ballast is quite low

Easy to attach weights

With easy to attach weights for front hitch (or rear hitch for front loader operation), you can easily attach the weight only for the operation when you need it

more energy during braking, creates a longer stopping distance on average, and creates more soil compaction during operation on wet soil conditions. However, there are certain applications and operations where ballasting is needed and reasonable. Those situations can be clustered in two main topics: 1. to prevent an unbalanced situation on the tractor, e.g., when working with a heavy front loader and adding ballast in the rear hitch or on the rear axle, or when using a front ballast as a counter weight for a heavy rear hitch. With higher loads on one end, the maximum speed may be reduced for both the axle and the tires. 2. to make the tractor heavier to transmit more force to the soil, e.g., for implements with lower working speed like a plow where the operational speed is less than 6 mph. Here, all the engine power is transformed into a high torque on the axles, which means high forces in the contact patch between tire and soil. In this instance more weight means better grip for force transmission to the ground – so basically the weight supports the tire.

David Graden: operational agriculture market manager, Michelin North America Inc.: Depending on the machine’s use, improper ballasting will cost more time and money than most would expect. At Michelin, we strongly encourage producers to work towards proper weight distribution of their machine. This should be an all-encompassing solution to maximize traction (which reduces slippage and soil compaction), torque, and fuel efficiency, minimize power hop and road loping, and overall productivity. Further, it is very important to keep in mind each task and corresponding implement can require different ballasts and tire pressure recommendations. For instance, a front-wheel assist machine requires about 120 lbs. per PTO horsepower at 6 mph to fully transfer the torque. Additionally, of the total machine weight, 35% should be on the front axle and 65% should be on the rear axle. Let’s say you add a hitch mounted strip till on the back. Now, you have to take into account the weight of the implement, while working in the field, and adjust your ballast weights and air pressures accordingly. Finally, this change only occurs a handful of times per year. Investing in ballast weights that allow you to change quickly and easily MTD December 2018

will give you the ability to properly distribute your machines weight for every season.

Mark Turner, senior product marketing manager, agricultural tires, Maxam International Inc.: Ensuring you are using the correct ballasting weight is not always an easy exercise, but ultimately it is one that is worthwhile. Unnecessary extra weight or not enough weight can both lead to higher fuel consumption as well as possible uneven tire wear and thereby increase input costs. Correct ballasting for field work is entirely about ensuring that slip rates are kept in the best window that allows optimum tractive efficiency and drawbar pull. Typical recommended rates of slip are 10-15% for 2-wheel drive tractors (2WD) and 8-12% for 4-wheel drive (4WD) or mechanically assisted 4WD tractors (MFWD). The best type and weight of the ballast should be assessed for each implement used and should be added to the front and/or rear to ensure optimum weight distribution between the two axles. The general recommendation for field

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

work is to make sure that at least 20% of the total weight is on the front axle; this ensures good steering response and vehicle control as well as limiting the possibility of an adverse reaction between suspension systems and automatic draught controllers. For prolonged road work applications, a weight split of around 40% front and 60% rear should ensure good vehicle stability and control as well as ensuring that dynamic overload is not excessive when the vehicle is braking. It is also important to remember to alter your tire inflation pressures to suit the new load on the tires when weights are changed. Norberto Herbener,Â OE applications engineer, Trelleborg Wheel Systems Americas Inc.: For a tractor to perform at its peak capabilities and efficiency, consider the following points.

1. The first point is the correct weight and weight distribution that the tractor must have to transfer power with efficiency. As a rule of thumb, a correct weight ratio begins

considering that between 100 to 120 lbs. per horsepower of the tractor is needed. Therefore, a 300 hp tractor should weigh approximately 30,000 to 36,000 lbs. This weight will allow the tire lugs to penetrate the soil deeply enough to create optimum grip and acceptable tire-to-soil slippage. The best way to increase a tractorâ€™s weight is by adding solid ballast to the axles or on the tractor chassis. 2. The second point is weight distribution. Once the correct tractor weight is defined, the distribution should be 50% on the front axle and 50% on the rear axle for 4WD. For a front wheel assist tractor, the distribution should be between 40-45% on the front axle and 55-60% on the rear axle. If the design of the implement creates a high load on the rear axle (reducing the load in the front axle), the ratio on front-wheel assist tractor should be closer to 45-50% in the front and 50-55% in the rear. For 2WD tractors the front axle should have between 25-35% of the total load. It is very important to measure this weight per axle with calibrated scales --individual per tire

A G T i r e Ta l k or per axle, like on a grain elevator scale. An incorrect weight distribution can create issues like “power hop,” where the front axle is too “light” (losing traction) and the rear axle is overloaded, creating excessive “grip.” 3. The third point is tire inflation pressure. Each tire’s size load capacity changes with inflation pressure changes -- the higher the inflation pressure (more air volume in the tire chamber) the higher the load capacity. This load capacity is defined by the type of tire (bias, radial, IF, VF, IMP, etc.) and design (width, rim diameter and ratio), and is regulated by the TRA (Tire and Rim Association) in the U.S. or the ETRTO (European Tire and Rim Technical Organization) in Europe.

A note related to minimum pressure: Even if the load is low enough to allow for very low inflation pressure (below 10 psi), the minimum inflation pressure should not be below the 10-12 psi mark. Below this pressure value is risk of rim-to-tire slippage… as there is less pressure from the tire bead against the rim flange, reducing the efficiency of power transmission from the tractor to the tire. Scott Sloan: ag product manager/global LSW, Titan International Inc.: Whether running in heavy tillage or moving heavy hay bales, the correct ballast is important. Fact is, too much weight can cause a tractor to feel sluggish, increase soil compaction, reduce fuel efficiency and result in premature drivetrain wear. Too little weight can result in tire slippage, reduce fuel efficiency and cause premature tire tread wear. The end game is trying to minimize tire slippage when you head to the field. Most manufacturers shoot for slip in the 8% to 15% range. Anything over that is extremely

noticeable and not very efficient. Growers feel they are sending a lot of money with little return through the exhaust stack. Most growers I deal with do prefer to be running in the 3% to 9% range. So a quick, fast approach to get in the ballpark for example on a 4WD depending on the application to have anywhere from 85 lbs. to 125 lbs. per rated horsepower. For instance, a 4WD rated at 500 hp should be in the 50K to 55K total weight with 55%-60% on the front and 40%-45% on the rear. Not only is the total machine weight important, the distribution of that weight is just as critical (see Table 1 below for a quick reference to proper ballasting and weight distributions). At the end of the day, each grower needs to understand the factors involved and the objective for their individual operation. One end user may be okay with a little more slip and a lighter machine, while the other wants to pin all the power to the ground. Jim Enyart, technical manager, CEAT Specialty Tires Inc.: Ballasting has been utilized for equipment functionality and stability as well as transferring power to the ground. Many types of ballasting materials have been utilized, including rocks, soil, cast iron, water, calcium chloride, magnesium chloride, beet juice and more. The choice of ballasting materials includes many factors, but the most critical aspect of adding ballasting is how much weight to add and where to place these materials. The first critical factor is knowing the engine horsepower of the tractor and the axle weights. Ideally, the weight per horsepower ratio should be between 100 and 120 pounds/hp. The lighter weights are more desirable and efficient as long as there are no performance issues such as stability or wheel hop. Increased weight ratios may be utilized

TABLE 1: PROPER BALLASTING AND WEIGHT DISTRIBUTION, PER TITAN 4WD

MFWD

2WD row crop

Total tractor weight

Percent on front axle

85-125 pounds per engine horsepower.

For towed implements, use 51-55%. This is very important to help in control of power hop. With no hitch, PTO or ballast, the front will be 60% or more out of the factory. For hitch-mounted implements, use 55-60%. For towed implements with very high downward loads on drawbars, use 55-65%.

120-145 pounds per 35-40% for all types of implements. Power hop is PTO horsepower. 130 easier to control as front split is reduced. is most common. Same as MFWD.

25-35%. Use higher percentage with heavy hitchmounted implements.

to reduce slip, which increases efficiency, especially in demanding applications. For 2-wheel drive tractors the weight distribution should be 30% on the front axle and 70% on the rear . MFWD tractors should have 35% on the front and 65% on the rear axle. Four-wheel drive tractors should carry 60% on the front and 40% on the rear axle. Allowances for additional weight due to attachments should also be calculated into your weight distribution adjustments. Air pressures should be set just above the maximum load carrying capacity you are expecting from your tires based on the most demanding application. Changing air pressures between road and field usage is time consuming and not practiced. Air pressures should be set for the road application due to the higher speeds, which is the most demanding from a load carrying aspect.

Bradley Harris, manager, global agricultural field engineering, Firestone Ag Division, Bridgestone Americas Tire Operations LLC: To get the most efficiency from a tractor, it’s critical to have the proper amount of ballast and the weight appropriately split between the front and rear axle. There are some general rules that tractor and tire manufacturers use when helping customers set up tractors used for fieldwork.

Step One: Identify the horsepower rating of the tractor. For 2WD and mechanical front-wheel drive (MFWD) tractors, the rated PTO horsepower is used. For 4WD tractors, the tractor’s rated engine horsepower is used. For the following calculations, we will use a MFWD tractor with 180 PTO horsepower being used to pull drawbar implements as the example. Step Two: Calculate the target total tractor weight. Example target tractor weight: 180 PTO HP x 130 lbs./PTO HP = 23,400 lbs. (see Chart 1).

CHART 1: WEIGHT PER HORSEPOWER RECOMMENDATIONS Tractor Type

Target Tractor Weight

2WD

145 LBS/PTO HP

MFWD

130 LBS/PTO HP

4WD

110 LBS/Engine HP

Weight per horsepower recommendations for the three types of tractors. SOURCE: BRIDGESTONE AMERICAS TIRE OPERATIONS

MTD December 2018

Step Three: Calculate the recommended front and rear axle weight splits. The weight split is based on the tractor type and how the tractor is being used. Example tractor weight splits: front axle, 23,400 lbs. x 0.35 = 8,190 lbs.; rear axle, 23,400 lbs. x 0.65 = 15,210 lbs. (see Chart 2).

CHART 2: RECOMMENDED AXLE WEIGHT SPLITS

axle and rear axle weights are known, we can use the tire inflation tables to look up the minimum inflation pressure required to carry the load. In this example, the front tires were 420/90R30 used as singles. The minimum inflation pressure to carry the 9,370 lbs. is 17 psi. The rear tires were 480/80R46 used as duals. The minimum inflation pressure to carry the 15,500 lbs. is 12 psi.

When the tires are inflated to the recommended inflation pressure, the tire is able to develop the proper footprint. ■ James Tuschner has spent 25 years in the tire industry, primarily focused on the agricultural and specialty tire markets. His experience includes time spent at Alliance Tire Americas Inc. (first as director of marketing, then as director of business development) and Denman Tire Corp. He started www.agtiretalk.com in 2016.

Weight Split Tractor type

Front Axle

Rear Axle

2WD

25%

75%

MFWD (Draw Bar)

35%

65%

MFWD (3-Point Hitch)

40%

60%

4WD

51 - 55%

45 49%

Target weight splits according to standard industry practices. Keep in mind these are all target weight splits with no equipment mounted to the tractor. If 3-point equipment is being used, make sure there is enough weight on the front axle of the tractor to keep the front axle on the ground. SOURCE: BRIDGESTONE AMERICAS TIRE OPERATIONS

Step Four: Weigh the tractor. The most accurate way to find the weight is to use a scale. When weighing a tractor, make sure all the fluids are topped off, especially the fuel tank. If for some reason the tractor cannot be weighed, please consult your operator manual or your equipment dealership. Example tractor weighed with portable scales: front axle, 10,150 lbs.; rear axle, 15,500 lbs. Step Five: Add or remove weight. In most cases a tractor cannot be ballasted to the exact target weight outlined in Chart 2. In the example, the target front axle weight is 8,190 lbs., but it weighed 10,150 lbs. Let’s assume the example tractor has six front suitcase weights. Since the front axle weight is heavier than the target weight, we would remove the suitcase weight and re-weigh the front axle. Even though the suitcase weights are 100 lbs., they add 130 lbs. to the front axle because the weights are in front of the axle. When the weights are removed, the tractor is weighed and the new front axle weight is 9,370 lbs. Step Six: Set the inflation pressure of the front and rear tires. Now that the front w w w . M o d e r n T i r e D e a l e r. c o m

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Commercially Viable Centric Parts introduces heavy-duty brakes Centric Parts’ new heavy-duty brake program features air disc brake pads, rotors and repair kits for all makes. Air disc brake pads are available in two grades of application-specific friction (106 Series: 23K and 306 Series: 26K) and in more than 20 FMSI (Friction Materials Standards Institute) shapes. The rotor line has more than 25 SKUs of coated and uncoated rotors. The company, which already offered other replacement parts for heavy-duty commercial vehicles, says its air disc brake program is the most complete offering for Class 7 and Class 8 commercial vehicles. CENTRIC PARTS www.centricparts.com

Michelin updates CerexBib harvester tire The newest edition of the CerexBib harvester tire from Michelin addresses two key issues of farmers: balancing the use of larger machines and higher load capacities with soil compaction concerns. The CerexBib 2 has designations for increased flexion (IF) and very high flexion (VF), as well as Michelin’s CFO+ for cyclical field operation, which the tire maker says is better than the standard CFO designation. CFO+ technology offers a second and lower 6 mph cyclic loading table over the standard 10 mph with CFO. The second generation CerexBib 2 is available in nine front sizes and seven rear sizes. MICHELIN NORTH AMERICA INC. www.michelinag.com

Giti expands ultra-wide-base tire lineup Giti is amping up its lineup of ultra-wide-base tires with two new offerings, the GDL633 FS (pictured) for the drive axle position and the GTL933 FS for trailers in long haul applications. Both tires are SmartWay-verified and available in size 445/50R22.5. The GDL633 FS features a special tread compound for reduced rolling resistance and lower operating cost. The seven circumferential grooves evacuate water and the sipe design provides even contact pressure to minimize irregular wear. The GTL933 FS is designed with a fuel-efficient compound. Its rib edges minimize irregular wear, and the enhanced tread groove design lessens stone retention. GITI TIRE (USA) LTD. www.gititrucktires.com

Camso improves road speed with latest tracks The newest rubber tracks from Camso, the RD 4500 Track Series, are designed to help farmers maximize uptime by increasing the speed they can travel when on the road. The 4500 series tracks will premiere on the updated 2019 Case IH Rowtrac tractors. The tracks, combined with the capability of the newest tractor, help customers travel up to 50% faster while pulling implements, when compared to the previous track generation, the company says. With less time spent on the road, Camso says farmers can increase overall productivity by 16%. The RD 4500 tracks give the tractor the capacity to achieve road speeds of up to 25 mph on narrow tracks. CAMSO INC. www.camso.co

CEAT adds row crop tire to Farmax offerings The Farmax Row Crop Ag radial tire from CEAT combines low compaction with high traction. The tire is available in four sizes: 320/80R42, 340/85R48, 230/95R48 and 270/95R48. It is backed by a seven-year warranty. The tire features a higher lug angle and lug overlap at the center of the tread for better roadability and stability; a strong carcass and reinforced bead for high durability and load carrying capacity; D-speed rating for maximum speed up to 40 mph; a rounded shoulder for soil and crop protection; and more lugs for more traction. The company calls the combination of low compaction, better traction and outstanding roadability the “power of CTR.” CEAT SPECIALTY TIRES LTD. www.ceatspecialty.com

BKT’s Multimax MP 527 is designed for telehandlers The Multimax MP 527 from BKT is a versatile radial tire developed for telehandlers in industrial applications. It provides traction and stability, especially during the lifting stage thanks to the combination of an aggressive tread design and a robust sidewall. The tire features a puncture-resistant casing and is made of a durable, cut-and-chip-resistant compound. It is available in the following sizes: 340/80 R 18, 360/70 R 18, 340/80 R 20, 400/70 R 20, 400/70 R 24, 400/80 R 24, 440/80 R 24, 460/70 R 24, 500/70 R 24, 480/80 R 26 and 440/80 R 28. BALKRISHNA INDUSTRIES LTD. www.bkt-tires.com

MTD December 2018

Business Insight

Year-end review and a look at what’s ahead NOW IS A GOOD TIME TO GET SERIOUS ABOUT PLANNING FOR 2019 By

Dennis McCarron

oesn’t it still feel like early 2018? Wow, this year has simply zipped by. A blur. At the end of the year it’s good practice to reflect on the year’s performance, major influencers, and celebrate successes and think about how to improve on opportunities missed. December is also a good time to get serious about planning and doing your best to predict what you think 2019 will hold for your store and for the industry. 2018 started out a little choppy for the industry, and quickly we had to dig out of a shortfall in unit sales for most of the country while surprisingly, automotive repair remained solid to strong. But market demand for units climbed back close

to the second quarter and by mid-year, the industry as a whole was about par with the prior year. Manufacturers were reporting an uptick in orders, and most predictions at this point in 2018 were indicating the industry would finish the year with modest growth. If you finished the year down in units, your competitors were stealing shares from you – and you should figure out why. The industry continues to see rapid consolidation at the corporate level in both independent dealer acquisition (Firestone, Monro, Pep Boys, Express Oil/Kaufman’s among others). Those major players are quickly expanding their footprint. At the distribution level, we have also seen extraordinary activity, among them Michelin/

PHOTO: GETTY IMAGES

Sumitomo, Goodyear/Bridgestone, ATD, and other smaller acquisitions within the field. Regardless of your view on whether the impact for small business tire and automotive shops will be beneficial or harmful, the bottom line is the industry is indelibly going to be different in 2019 and beyond. Speaking of massive changes, we have officially entered the gully of the talent gap. About 10 years ago, fewer and fewer people were entering the trades, while they opted for a college degree instead. This effort was led largely by the U.S. government. The intention was to prepare America’s youth for “jobs that require a degree.” The unintended consequence was that trade jobs were devastated. We are now fully, I believe, in the lowest point of a lack of talent entering the industry (or at least staying, as turnover at lower skilled positions is extremely high). This has created two problems: 1) the average age of cars is growing again thanks to the effects of “Cash for Clunkers” being over, and that means vehicles will begin to need more repairs as the older a car is, the more complicated repairs tend to get, and 2) according to several reports, the average age of master certified technician is now over 50. And there are very few 30 to 40 year olds ready to replace them. That is the talent gap. When you get a gap that large, market forces are required to do one thing: raise wages considerably. The more unique your contribution to the market is, the more money you can command. If shops raise wages, they are going to be compelled to raise prices, they can’t simply absorb them; the jump is going to be too much, too fast. Somewhat thankfully, as wages increase this way, that will attract young people to enter the workforce, but it will take years of educating and gaining experience to get MTD December 2018

Business Insight back to proper staffing at the proper skill levels. If anything, the next 10 years will be exciting in this regard. Let’s also not forget many states, and some global companies’, decision to move minimum wages to close or to $15 an hour. If you have two employees, one making $18 an hour (flat rate or hourly, doesn’t matter) and the other making

$11, and that $11/hr. jumps to $15, do we all really think the $18/hr. person won’t want to maintain the distance in wage earnings? Thankfully, this change is likely to evolve more than snap into place, but for the states it hits first, it will be interesting to see how everything ends up being affected. For now, we can only use wage theories and history to

predict how the markets will react, but they ultimately are just theories and reality often can throw a curve ball and the results come out differently (which creates new theories). To 2019, I say: Bring it. Low unemployment is likely to continue, and while that makes staffing harder, it means more people are driving to work and putting miles on their cars. The independents are making huge strides in technology, like digital vehicle inspections (DVI) — you are already doing it, right? — and new machinery designed to improve the process of working on cars through efficiency. Remember, DVI’s don’t make for better

INDEPENDENT TIRE AND AUTOMOTIVE DEALERS CONTINUE TO OWN WELL OVER 50% OF THE MARKET SHARE, AND BY SOME ESTIMATES, JUST OVER 60%. SO WE ARE A DOMINANT FACE AND FORCE IN THE INDUSTRY. inspections, they make inspecting and estimating faster. If your employees do poor paper inspections, they will do poor digital ones. The last couple years have been relatively good for the industry, and many shops are looking to invest and remodel, upgrade and attract customers on new levels. 2019, by all estimates (and to be clear, it’s just estimates, anything could happen — right?) looks to be another solid year, although big stories, consolidations and new technologies will continue to keep everyone on their toes. Independent tire and automotive dealers continue to own well over 50% of the market share, and by some estimates, just over 60%. So we are the dominant force and face in the industry. It’s a good time to be small business owner in this space. But you need to stay on your toes, be open to change, and ready to adapt. Good luck, good selling, recruit constantly, and join a 20 Group! ■ Dennis McCarron is executive director of Dealer Strategic Planning Inc., a company that manages multiple tire dealer 20 Groups in the U.S. (www.dsp-20group.com). To contact McCarron, email him at dennis@dsp-20group.com.

MTD December 2018

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European Notebook

Truck tire tariffs in Europe reduce Chinese imports by 88% By

John Stone

COURTESY OF NTDA

t has been a long time coming, and the speculation around its effect on the European tire market has been speculative and widespread. But finally, the European Union (EU) in Brussels has announced its long awaited “final” decision on the introduction of anti-dumping tariffs to be imposed on truck and bus tires, including retreaded tires, that are imported into the continent from China. Regulation 2018/1579 came into effect on the 23rd of October, and right to the very end the EU kept all concerned guessing -- and even added a surprising final “twist in the tail” in this diplomatic saga. The EU increased the tariff levels almost across the board, which replaced the original retroactive tariffs between February and May of this year. This latest and final ruling means that only Hankook Tire will have its tariff reduced to 42.73 euros (close to $48.53 in U.S. dollars) per tire, whilst other tire manufacturers, including Giti Tire, Aeolus Tire, Guizhou Tyres, Prinx Chengshan Shandong Tire, Qingdao Doublestar Tire, Sailun Jinyu Group, Shandong Hengfeng Rubber, Shandong Huasheng Rubber, Shandong Jinyu Tire, Shandong Linglong, Triangle Tyre and Zhongce Rubber Group, have now been hit with even higher tariffs, from 47.96 euros up to 49.31 euros per tire. The EU has also decided to include the Chinese production facilities of leading global “A” brands, including Michelin (Michelin Shenyang Tire), Bridgestone (Bridgestone Huizhou Tire), Pirelli (ChemChina) and Goodyear (Goodyear Dalian Tire), who also have been handed a tariff of up to 49.31 euros per tire. Finally if all the above tire companies think they have been dealt a really raw deal, then spare a thought for Xingyuan Tire Group and Gaungrao Xinhongyuan Tyre, who have been hit with a massive tariff of 61.76 euros per tire. This confrontation with the import of Chinese manufactured tires into Europe and, indeed, other countries around the world has been going on for more than 18 months, and this final ruling has predictably bought the sale of Chinese imported truck and bus tires in Europe to an almost complete halt as the tariffs imposed on the tires have made them so expensive and therefore completely unprofitable. European tire wholesalers have been preparing for the possibility of tariffs being imposed throughout this year and trying to source out appropriate manufacturers producing in Europe or outside of China, with Thailand suddenly becoming a new “hotbed” of tire production. However both in Europe and in some parts of Asia, tire production facilities have really struggled to cope with the additional demand for tires, which has inevitably led to a shortage of truck and bus tires. This dramatic slowdown in tire production has had an immensely negative effect on the commercial tire market in every European country, and I have noticed that almost overnight advertisements in European magazines, both hard copy and digital, for commercial

The final EU tariffs apply only to truck tire production in China. There has never been any indication from the EU that passenger tires from China were or would be involved in the tariffs.

tires have disappeared. I have also spoken with the European distributors of several Chinese truck and bus tire manufacturers, and the general opinion is the ruling has effectively “killed off” most business in Europe in this market sector, at least for the moment. It seems small commercial tires have now become totally unrealistic in price, and larger tires are not far behind. One distributor (who shall remain nameless) points out that affected Chinese producers are now frantically trying to divert production for Europe to their facilities outside of China, which are mainly in Indonesia, Thailand and Vietnam. And cranking up production levels takes time. Another significant development has been the responsive action of the “A” brand manufacturers, which have instantly switched their production to second line brands that are manufactured outside of China. These tires are now being targeted by major European tire wholesalers as they are the cheapest alternative at the moment. It is still too early to get a true measure of the real impact of the tariffs, but it is estimated that in the last few months, Chinese imports have decreased by 88% per month, which as I mentioned earlier has pretty much stopped this market dead. It will be very interesting to see what happens next. Will the Chinese producers dodge around the tariffs by making their tires in other countries and stage a comeback in the market? Will China subsidize Chinese-based tire manufacturers to get around the tariffs? Watch this space! ■ John Stone has been working within the global tire industry for the past 27 years. In 2004 he launched his own consulting company, Sapphire Media Service, which caters to business media clients around the globe. Stone also writes for tire and automotive-related publications in Europe, South Africa and Asia.

MTD December 2018

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Focus On Industry

From Turkey to the U.S. ORIENTE TIRE USA WILL DISTRIBUTE PETLAS CONSUMER TIRES By

Bob Ulrich

etlas consumer tires are coming to the United States. And Gus Lima is the man responsible. Lima, president of Oriente Triangle Latin America Inc., is also CEO of the Latin Expo Group LLC, which organizes several trade shows. He is responsible for bringing the Latin American and Caribbean Tyre Expo, Latin Auto Parts Expo and North American Tire & Retread Expo to life. Despite his success as both an independent tire distributor in Latin America and trade show organizer, he says he has dreamed of distributing an exclusive line in Lima said he wanted the U.S. Petlas someone who understands the U.S. Tire Industry market to run Oriente and Trade Co. Tire USA. made that happen by offering its nearly full-line of passenger and light truck tires to Lima and Marco Zigni, principals in the new Oriente Tire USA LLC. “It was on my bucket list,” says Lima, who will run the company out of Miami. “I feel there is room in the U.S. for a high-quality European tire, a Tier 2.1 tire marketed at a competitive price. Petlas is produced in Turkey, so the tires don’t have trade barriers into this country. It was the perfect storm for us.” Thanks to expanded production, the plant, based in Kırşehir, Turkey, has enough capacity to supply the U.S. with a nearly full-line of passenger tires, including ultra-high performance, winter and run-flat tires. The light truck tire line covers segments from highway-terrain to 4x4 SUV. “Key U.S. market LT/SUV sizes are scheduled to be introduced in 2019,” he says. Only larger sizes in the all-season

passenger tire line and a mud-terrain tire are missing from the lineup; plans “are being formulated to introduce those tires to the market.” “We are interviewing for a team to run the company in the U.S.... with our full support,” says Lima. His first hire was David Halldane as sales director. Halldane, with more than 30 years of experience in the tire industry, will be in charge of market and sales development. Petlas and Starmaxx agricultural and OTR tires will continue to be distributed separately by Petlas Tire USA LLC, which is located in Cheyenne, Wyo. But Lima says the two companies will work together when possible. ■ The PT741 Velox Sport is also available in runflat tire sizes.

A wide range of consumer tires From passenger and LT to 4x4 and SUV Oriente Tire USA LLC will be distributing the following Petlas consumer tire lines in the U.S.: Passenger tires PT311-Elegant

PT515-Imperium

PT525-Progreen

PT535 Imperium

PT711 Velox Sport

PT721 Velox Sport

PT731 Velox Sport

PT741 Velox Sport

W601 Snow Master

W651 Snow Master

PT555 Multi Action (four season) 4x4 and SUV tires PT411 Explero A/S PT431 Explero H/T

PT421 Explero A/T W671 Explero (MS winter) Light truck radial tires

PT825 Full Power

PT825 Full Power Plus

PT835 Full Power

PT875 Advente MS

PT925 Full Grip (MS winter)

PT935 Full Grip (winter)

PT945 Full Grip (winter) A Petlas mud-terrain tire is also in the planning stages, says Gus Lima, co-principal of Miami-based Oriente Tire USA LLC. MTD December 2018

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