Modern Tire Dealer - December 2024

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Several factors have caused the U.S. ag tire market to be off-balance, but tiremakers share their point of view of what’s up and down, and what’s likely ahead in 2025.

IATD bankruptcy raises big questions

WHERE DOES THE COUNTRY’S BIGGEST TIRE DISTRIBUTOR GO FROM HERE?

heard a lot of chatter about a wide variety of topics while on the floor of last month’s SEMA Show, but one subject that seemed to be top-of-mind for both tire dealers and suppliers is the future of American Tire Distributors Inc. (ATD) now that the company has filed for bankruptcy.

ATD’s recent Chapter 11 filing — the wholesale distributor’s second in six years — is certainly the biggest tire distribution story of 2024 and a development that will have far-reaching reverberations.

ATD says it will remain “open for business” while it refinances and reorganizes, but recovery could be a bumpy road as the company owes a lot of money to a lot of suppliers. Specifically, ATD’s top 30 creditors are owed a total of $612,684,340. (ATD owes some $121 million to Goodyear Tire & Rubber Co., its largest creditor, alone.)

ATD’s first go-around with Chapter 11 has been well-documented in the pages of MTD and on www.moderntiredealer. com. This time, however, the company is in a different, arguably much better position.

For starters, when it filed Chapter 11 in October 2018, ATD was still reeling from a devastating blow that it had been dealt six months earlier, when two of the company’s biggest suppliers, Goodyear and Bridgestone Americas Inc., formed TireHub LLC and abruptly cut off supply to ATD’s warehouses.

ATD’s North American footprint also was very different in 2018 as the company still owned and operated its National Tire Distributors (NTD) subsidiary in Canada, which it eventually sold to Quebec-based Groupe Touchette in June 2022.

In addition, ATD has added a number of large distribution centers since 2018, including its first regional distribution center, a facility in McDonough, Ga., that opened in July 2024; a warehouse in Louisville, Ky., that opened in April 2023; and a distribution center in Salt Lake City, Utah, that began shipping tires in March 2023.

As ATD embarks upon a critical phase in its existence, several questions have occurred to me, in no particular order.

Will ATD decrease its footprint? After ATD’s bankruptcy was announced, I asked the company if it planned to sell any of its 115plus distribution centers. An ATD spokesperson replied, “We are focused on supporting our manufacturer partners and providing our customers with tires, wheels, related tools and accessories to support their business. As always, operational footprint decisions will continue to be based on the needs of the business.” Will ATD be willing to part with some locations in order to generate cash? I don’t think this is outside the realm of possibility.

Will other tire distributors benefit from ATD’s situation? When it comes to sheer number of locations, both TireHub and National Tire Warehouse (NTW), the joint venture between Michelin

Tire

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North America Inc. and Sumitomo Corporation of Americas, closely approach ATD. Other distributors of significant size, including K&M Tire Inc. and U.S. AutoForce LLC, have been in expansion mode, with K&M Tire recently gaining a number of locations in New England. I’m sure there are smaller independent tire distributors that also would love to grab a chunk of ATD’s business — and there are plenty of them. (Independents remain the dominant players in the U.S. wholesale channel, with 80% market share, according to the 2024 MTD Facts Issue.)

When will ATD emerge from bankruptcy? ATD emerged from its previous bankruptcy near the end of December 2018, slightly more than two months after it declared Chapter 11. This time around, the process will likely move at a slower pace. According to www.uscourts.gov, a “Chapter 11 debtor usually has the exclusive right to file a plan of reorganization for the first 120 days after it files the case and must provide creditors with a disclosure statement containing information adequate to enable creditors to evaluate the plan. The court ultimately approves (confirms) or disapproves the plan of reorganization. Under the confirmed plan, the debtor can reduce its debts by repaying a portion of its obligations and discharging others. The debtor can also terminate burdensome contracts and leases, recover assets, and rescale its operations.” In other words, this could take a while.

I have no doubt that ATD will survive bankruptcy. What the company will look like after it comes through on the other side remains to be seen. Stay tuned to MTD as we continue to cover this evolving story. ■

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

American
Distributors Inc.’s recent Chapter
filing — the company’s second in six years — is the biggest tire distribution story 2024 and a development that will have far-reaching reverberations.
Photo: American Tire Distributors Inc.

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The entire tire industry is watching and waiting to see what happens next as American Tire Distributors Inc. (ATD) rides through its second bankruptcy reorganization in six years.

A news cycle like no other

In a span of a few weeks, the largest wholesale distributor declared bankruptcy, one of the world’s largest tire manufacturers announced it was shutting down its only North American tire factory and we learned the outcome of the year-long question of whether tariffs would be levied on truck tires imported from the world’s biggest tire-supplying country to the U.S. market. It’s been a whirlwind — and we didn’t even mention the SEMA Show or election! It’s proof that if you’re not following MTD online, via our newsletters and on social, you’re bound to miss a lot.

1. Discount Tire les objection in ATD bankruptcy case

2. Sumitomo ends production in Buffalo

3. ATD les for Chapter 11 bankruptcy

4. ATD’s 30 largest creditors in 2024

5. ATD bankruptcy raises key questions

6. Tariff rates for truck tires from Thailand are set

7. Photos: Discount Tire hosts Treadwell experience

8. Bridgestone ordered to pay retroactive tariffs

9. CEO Stewart reveals what’s next for Goodyear

10. Photos: Scenes from the 2024 SEMA Show

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Industry News

What’s next for Goodyear?

CEO MARK STEWART COVERS EVERYTHING — FROM TIRE BRANDS AND RETAIL STORES TO THE ROLE OF INDEPENDENT DEALERS

“We are absolutely committed to getting back to being number one in tires and number one in service,” says Mark Stewart, CEO and president of Goodyear Tire & Rubber Co.

In this wide-ranging interview, which was conducted at the 2024 SEMA Show, Stewart discusses the role independent tire dealers will play in Goodyear’s future, how the company will manage its expansive brand portfolio, next steps in the Goodyear Forward plan and much more.

MTD: When you took the job, you knew there were some challenges facing Goodyear. What opportunities do you see right now and what are some of the challenges you’re working through?

Stewart: It was over a year-and-a-half ago now that Goodyear reached out, and sort of doing the research about the challenges of things...and at that time, the Goodyear Forward plan was just coming out as I was getting to the end of the process, so a lot of time going through that and looking at it and that plan really resonated with me. I said, ‘OK, this makes sense and that makes sense. These are things I’ve done in terms of turnarounds,’ So I got really excited about that, and then the people I started meeting at Goodyear — and for me, that cultural fit was there. I was just really impressed with the folks and the pride people have working there. Coming on board, I really spent time listening to folks, meeting as many people as possible, getting to all the factories, meeting the retailers, meeting the distributors, finding out what the challenges were, what was going well and what wasn’t, so we could put it together. And some of these things I (still) do every week. So what we did was we took

“Goodyear Forward is very much grassroots,” says Mark Stewart, CEO and president of Goodyear Tire & Rubber Co. “It’s coming from our folks. And it’s going very well.”

Photo: MTD

the Goodyear Forward plan and we’ve enhanced it — taking a fresh-eye look coming in, taking (in) feedback from the teams.

Goodyear Forward is very much grassroots. It’s coming from our folks. And it’s going very well. We increased our guidance on it... $450 million (in cost savings) this year, so up $100 million. The original plan was $1.3 billion by the end of next year. We upped that today to $1.5 billion. (Editor’s note: MTD interviewed Stewart a few hours after the company’s third quarter 2024 earnings call.) We feel very confident in the work the team is doing around the world and we continue to fill the pipeline up with new projects. Back to the basics is really the thing.

MTD: Do you expect to sell the Dunlop brand and Goodyear’s chemical division in the new year? (Editor’s note: This past July, Goodyear announced that it will sell its OTR tire business to Yokohama Rubber

Co. Ltd. for $905 million in cash. The deal is expected to close in early-2025.)

Stewart: We can’t say a lot about it right now. As we get to the right spots, we can communicate more. They’re still going through the process. What I’ll share with you on Dunlop ... is we’re very pleased with the progress of Dunlop. It’s got a good following in the U.S. What I’ll assure you is, it’s not a fire sale. We’ll either get the right value for that or we won’t sell it.

MTD: Are you making progress on spinning off chemical, as well?

Stewart: It’s going through that process right now.

MTD: Goodyear now has a lot of brands with the addition of Cooper Tire & Rubber Co.’s portfolio. How are you planning to manage all those brands and what’s the future of your brand portfolio in North America?

Stewart: We’re making sure in the realignment of the brands in each of the regions (that) we’re not bumping into each other. The last thing we want to do is go head-to-head and cannibalize each other. Ryan Waldron (the president of Goodyear’s Americas region) and the Americas team have restructured the sales group and how we go to market with the distributors. We’ve brought in a new chief marketing officer.

What I’m really pleased about is we’re specifically working on catching up and filling the holes in our portfolio in high performance and the upper part of tier-one. We were too slow in getting those into the marketplace. We have the WeatherReady 2 coming out right now. By the end of the year, we’ll have roughly 90 SKUs. The ElectricDrive 2 is coming out. We’re also bringing Eagle F1

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SuperSports into the marketplace. We’re bringing in the (Eagle F1) Asymmetric 6. They’re on the boats right now. We’re doing more of a global capacity look and a global allocation fill. We’ve got those high-end fitments/SKUs in the market in Europe and we can effectively move them in.

A week-and-a-half ago, we launched our first marketing campaign — in terms of new advertising, TV advertising and digital advertising — for the Cooper brand. We wanted to make sure that our really dedicated Cooper distributors can see and feel that we are committed to the Cooper brand. Step one was putting this fresh series of commercials into the marketplace.

MTD: The Cooper acquisition happened before your time with Goodyear. Would you say all of Cooper’s former operations are fully integrated?

Stewart: I would say it mostly is. The synergy side of it — the teams playing together with that merger — is completed. But I’ve taken a fresh-eye look at it, as well — not just with the Americas team, but around the world, and there were a lot of great processes within Cooper that we can learn from as a broader group on a broader scale. We’re being really efficient with capex and that’s what we’re bringing into the marketplace, as well ... looking at our equipment standards, helping us to modernize faster (and) being more efficient with that capital to do it. Some of (Cooper’s) prowess in going to market — being really scrappy in the replacement market — I think is absolutely outstanding.

MTD: What are Goodyear’s long-term plans for its company-owned stores, both on the retail side and the commercial side?

Stewart: I’m really excited about retail. Ryan and I meet with the (retail) team every week. We just had our best performance in over 15 years and so I feel absolutely outstanding about where we’re at, in terms of the health of the retail market. We’ve also bolted on, over the last four months or so, the last-mile fleet business into the stores. We have nearly 50 activations on that. We’re doing in the neighborhood of 600 to 800 appoint-

ments in last-mile. We’ve changed our mix in the stores, as well, making sure we have the right assortment — the same as we’re doing with our distributors. And we’ve really up-ticked our service mix in the retail stores. We’re ready to go into a growth mode in our stores. I feel super-positive about it.

“We want to support our independent retailers, our own retail network (and) the distributors and help them to not just push, but to get pull from end users,” says Stewart, with, on left, TJ White of longtime Ohio-based independent Goodyear tire dealership, Tire Source, and right, Tom White, also of Tire Source. “We have to give them the tools to do that.”

Photo: MTD

MTD: What’s happening on the TBR side? How’s that part of your business doing?

Stewart: Commercial truck continues to be an overall struggle in the marketplace. It’s always the peaks and valleys of the cycle. We have upcoming regulatory changes, so on the OE side, we should start seeing some builds coming next year for that. It feels like things have kind of bottomed out and (are) starting to pick up.

Our national fleet account (business) is going very well. I’ve been spending a lot of time with our fleet customers and getting to know them. We’re hoping things pick up in the (TBR) arena. The team’s doing a good job of flexing the cost structure despite the volumes.

MTD: The recent bankruptcy of American Tire Distributors Inc. (ATD) is a huge story. What does that mean for

Goodyear and the wholesale channel, in general, and also, how do you see that affecting TireHub?

Stewart: We continue to watch it, as you guys do, as well. What I can share is in the last few days, we’ve got agreements in place with ATD for continued supply and protecting our part of the bankruptcy receivables, so we feel good about that and the process they’re going through with it. We continue to assess that situation and also feel good, looking backwards, that we have a joint venture with Bridgestone in TireHub as a nice alternative, as well as our other aligned distributor network customers. We have the means to get the tires to people.

MTD: What role will Goodyear’s partnership with independent tire distributors and dealers play in the company’s success? How will you make sure your dealers won’t feel overlooked, neglected or left behind?

Stewart: I think it goes back to us making sure we have the right, full assortment for each of our distributors, so it’s a one-stop shop for their customer base, for their retailers — whether it’s a Goodyear product, a Cooper product, a Kelly, a Mastercraft, etc. So from that side, we’ll make sure we have full coverage for them.

MTD: What message do you want to convey to your independent dealers?

Stewart: One, a big shout-out and thank you to all those folks. We thank them for their loyalty, their dedication, for representing Goodyear and Cooper and (our) family of brands. We are absolutely committed to getting back to being number one in tires and number one in service. It’s a lofty goal, but something Goodyear was known for (over) the bulk of 125 years and we are absolutely laser-focused on making sure we do that.

You’re going to hear us be much louder and prouder than we’ve been in recent years.

We want to support our independent retailers, our own retail network (and) the distributors and help them to not just push, but to get pull from end users. We have to give them the tools to do that.

— Mike Manges

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Bites ATD files for Chapter 11 reorganization

Dobbs moves into Texas

Dobbs Tire & Auto Centers Inc. is making its first move far away from its home turf of the St. Louis, Mo., metro area. The company has purchased a seven-store tire and automotive service company, Automotive Super Center (ASC) in Longview, Texas. The deal gives Dobbs 50 locations in three states.

Sun adds stores

Mesa, Ariz.-based Sun Auto Tire & Service Inc. has acquired four Tire Max locations, adding to its presence in North Carolina. All four of the stores are in the greater Greensboro, N.C. area, and collectively have 31 service bays. Owner Max Gardner said Tire Max has served the local market for more than two decades.

RNR names new CEO

RNR Tire Express announced four strategic promotions at its mid-year company conference. The promotions include Adam Sutton, former national franchise president, to CEO; Mathew Warren. former senior vice president, to chief operations officer; Kyle Parman to president of corporate store operations; and Matt King to vice president of corporate store operations.

Barna leads USTMA board

The U.S. Tire Manufacturers Association has named Jeff Barna, president and CEO of Yokohama Tire Corp., as the new chair of its board of directors. He will serve a two-year term through October 2026.

Fountain adds store

Fountain Tire Ltd. has added a new location in Fort McKay, which is a municipality in Alberta, Canada.

Nokian sets record

Nokian Tyres Inc. says its consumer tire plant in Dayton, Tenn., set a monthly production record in October. The plant’s workforce now totals around 500 people.

For the second time in six years, American Tire Distributors Inc. (ATD) has filed Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware. ATD says it’s a necessary step as it undergoes a reorganization including the option of a new ownership plan.

In a statement, ATD said it has entered into a “restructuring support agreement” with certain lenders, including accounts and credit funds managed by Guggenheim Partners Investment Management LLC, KKR, Monarch Alternative Capital LP, Sculptor Capital Management Inc. and Silver Point Capital L.P.

ATD says those lenders represent “approximately 90% of the outstanding obligations under the company’s term loan.”

Collectively, this group, known as the “ad hoc lender group” is considering new ownership for ATD through a competitive sale process.

“The company and ad hoc lender group are in discussions with respect to an asset purchase agreement that, if implemented, would transition ownership of the company to the members of the ad hoc lender group.

“The contemplated transaction would also eliminate a significant amount of debt and provide access to new capital, positioning the business as a stronger partner to manufacturers and customers who rely on ATD to improve their productivity, profitability and performance.”

In the bankruptcy court filings, ATD’s list of its 30 largest creditors includes the biggest tiremakers in the world, and prominent players in the U.S. market.

Collectively, those top 30 creditors are owed more than $612 million, with the largest, Goodyear Tire & Rubber Co., owed more than $121 million.

American Tire Distributors Inc. (ATD) has filed for Chapter 11 bankruptcy with hopes of reducing its debt and emerging with new ownership.

ATD

Continental Tire North America Inc., Toyo Tire USA Corp., ZC Rubber America Inc. and Sumitomo Rubber North America Inc. round out the top five.

When ATD filed for bankruptcy protection in October 2018, it completed the process before year’s end.

In the meantime, ATD said it will continue to operate its network of 115-plus distribution centers that serve 80,000 customers across the U.S. The company also said it will continue to support its manufacturer suppliers and continue to provide tires, wheels and other tools to its customers.

To guarantee those continued operations, ATD said the ad hoc lender group has committed $250 million in new financing, as well as access to $1.2 billion in financing from lenders under the company’s pre-petition ABL facility in the form of post-petition financing.

As long as the bankruptcy court approves, the post-petition financing credit, combined with cash generated from the ongoing business operations, “is expected to provide sufficient liquidity to support the business during the process.”

In ATD’s statement, ATD Interim CEO Michael Feder said, “For nearly 90 years, ATD has continuously evolved to meet the dynamic shifts and challenges facing the auto aftermarket.

“Today, we are taking further steps to position ATD for our next phase as a stronger distribution partner to our manufacturers and customers as we return to our roots and hone our core value proposition as a wholesale distributor.

“We are confident that entering into this process with the support of the ad hoc lender group will enable ATD to execute its business strategy and achieve our longterm objectives.”

The ATD bankruptcy case spans 13 entities in all, including ATD itself, ATD New Holdings II Inc., ATD New Holdings III Inc., ATD New Holdings Inc., ATD Sourcing Solutions LLC, ATD Technology Solutions Inc., FLX FWD Logistics LLC, Hercules Tire International Inc., Terrys Tire Town Holdings LLC, Hercules Tire & Rubber Co., Tire Pros Francorp LLC, Tirebuyer.com LLC and Torqata Data and Analytics LLC.

Photo:

Bites

TBC opens D/C

TBC Corp. has opened a 30,000-square-foot, regional distribution center in Nampa, Idaho. The facility will serve the company’s nearly 600 customers across Idaho and eastern Oregon with factory direct, truckload and same-day deliveries.

Flynn’s builds in Ohio

Flynn’s Tire & Auto Service has opened a newly constructed store in Howland, Ohio, to replace a smaller outlet less than a mile away in Niles, Ohio. The 9,000 squarefoot facility has 12 service bays, including drive-through bays for tire installation and oil changes, plus more space to hold a larger tire inventory. It’s the company’s first new construction project since 2001.

Zurcher names president

Former Bridgestone Americas Inc. executive Brian Summers is the new president of Monroe, Ind.based Zurcher Tire Inc. Summers was director, retail sales and global sales lead, national customers, at Bridgestone up until March of last year. Before that, he served as senior account manager at Bridgestone.

VIP opens 74th store

VIP Tires & Service has opened its 74th store, a new location in Barre, Vt. This is the sixth location in Vermont for the Auburn, Maine-based dealership. The new store is managed by Nick Haskins and employs eight, with plans to increase that to 12.

Chapel Hill honors leaders

Seven employees have completed Chapel Hill Tire’s inaugural Leadership Development Program class. The intensive, nine-month curriculum is designed to help employees think critically about their roles as leaders and focus on productivity, effective time management and workforce management through hands-on exercises and discussions.

Sumitomo ends production in Buffalo

Sumitomo Rubber Industries Ltd. (SRI), parent company of Sumitomo Rubber North America Inc., has ended tire production at its plant in Buffalo, N.Y.

In addition, SRI is dissolving its Sumitomo Rubber USA LLC (SRUSA) subsidiary “after making the necessary preparations,” the company said in a statement issued on Nov. 7.

“The company and its U.S. subsidiaries have cooperated to improve the production structure and operational efficiencies. However, the business environment remains severe due to the deterioration of productivity and profitability at SRUSA and profitability is hard to improve in the long term.

“Against this backdrop, we have extensively deliberated and carefully considered measures on our commitment to the North American market and the restructuring of operations there.

“Based on the assessment that in the North American market, sale of tires produced at the SRUSA facility could not be profitable, we’ve decided to discontinue all production activities at SRUSA and dissolve it.”

SRI acquired full ownership of Goodyear Dunlop Tires North America Ltd., which is now known as SRUSA, in October 2015. Goodyear’s Buffalo plant was part of that deal.

“Since then, we have been manufacturing tires for passenger cars, motorcycles, trucks, and buses,” at the facility, according to SRI officials.

“The tire research and development conducted at SRUSA will be transferred to SRI America Inc. and will remain in North America. In addition, the sales structure of Sumitomo Rubber North America Inc., a subsidiary of the company, remains unchanged.”

SRI officials added that the period “up to 2025” will be a phase of “selection and concentration of existing lines of business” under its current mid-term plan. “We continue to focus resources on and use them in growing businesses to strive for the future growth of the group.”

In 2021, SRI said it planned to invest $122 million in the Buffalo plant to increase daily production capacity from 8,250 tires to 14,300 units for passenger car, light truck and commercial truck applications.

By the end of 2023, SRI had expected to nearly double its capacity to produce passenger and light truck tires, increasing from 6,500 tires a day to 12,000 PLT tires a day.

According to MTD research, Buffalo is the smallest of SRI’s production facilities. The company’s other plants are located overseas.

“The company resolved to terminate all production activities at SRUSA and to dissolve SRUSA after making the necessary preparations on Nov. 7, 2024,” SRI officials said in a statement.

“We will proceed with necessary procedures for dissolution in accordance with local laws and regulations.”

Sumitomo Rubber Industries Ltd. has shut down its plant in Buffalo, NY.
Photo: Sumitomo Rubber North America Inc.

Tireco offers rebate

Bites Tariffs on TBR tires from Thailand are finalized

Tireco Inc. unveiled its first Milestar-brand consumer rebate, which will be active in January and February. Consumers will have the opportunity to save $60 on four Weatherguard AS710 or $50 on four Weatherguard AW365 tires.

Burt Brothers expands

North Salt Lake, Utah-based Burt Brothers Tire & Service has acquired two Tire Buster’s Supreme Auto Care stores in Utah. The stores, located in Payson and American Fork, will continue to operate under their existing name. Construction of another Burt Brothers location near Ogden is expected to be completed this month.

Montasser Joins Omni

OmniSource, a subsidiary of Omni United (S) Pte. Ltd., has hired Rob Montasser to serve as vice president of sales for the U.S. market. He most recently worked as vice president for the Falken brand at Sumitomo Rubber North America Inc. He will be tasked with driving sales and operations in the U.S. and increasing market share.

Big O Tires expands

TBC Corp.’s Big O Tires has announced the opening of a new franchise location in the Dallas-Fort Worth area in Carrollton, Texas. The location marks the brand’s entry into Dallas and its 12th location in Texas.

ZC plant produces tire

Production is still ramping up, but the first tire at the Zhongce Rubber Group Co. Ltd. (ZC Rubber) plant in Indonesia has been built. Tires made at the factory in Indonesia will be sold in the U.S.

Atturo, Blackhawks team

Atturo Tire Corp. has announced a new multi-year partnership with the professional hockey team, the Chicago Blackhawks. The program features a range of promotional activities in-stadium, on TV and across the Blackhawks’ digital platforms.

The International Trade Commission (ITC) has voted to confirm that imported truck and bus tires from Thailand are injuring the domestic industry in the U.S. As a result, TBR tires shipped from Thailand to the U.S. will be subject to tariffs.

Thailand is the largest source of imported truck tires into the U.S. market, and those tires will be subject to tariffs. Most tiremakers and importers will be charged a 12.33% rate, but Bridgestone will pay a 48.39% tariff on the tires it imports into the U. S.

It’s a ruling that has been a year in the making, as the United Steelworkers filed a petition in October 2023 seeking these tariffs. Union leaders from domestic TBR production sites testified almost exactly a year ago that imported products were threatening the livelihoods of all the union members and that tariffs were needed to stem the flow of imported tires.

In a bit of irony, a day before the ITC members voted 4-0 that they agreed with the union’s plea, one of the unionized plants learned it would shut down permanently. Sumitomo Rubber Industries Ltd. announced on Nov. 7 it was ceasing all tire production at its factory near Buffalo, N.Y. That plant builds commercial truck tires, as well as passenger and motorcycle tires.

With the ITC’s vote, most tire manufacturers and marketers in Thailand will be paying tariffs of 12.33% for truck and bus tires they ship to the U.S. That’s the rate the U.S. Department of Commerce (DOC) set in October for all but one company — Bridgestone Corp., which was ordered to pay 48.39%.

Both of those rates are much higher than what had been proposed during the preliminary phase of this tariff investigation. At that point, Bridgestone was facing a 2.35% penalty, while Prinx Chengshan Tire (Thailand) Co. Ltd. hadn’t been assessed a tariff at all. In the final stage, Prinx Chengshan’s tires are now subject to the 12.33% tariff.

Samuel Felberbaum, president of Prinx’s North American operations, told MTD, “We’re disappointed with the ruling.”

“Ultimately, I believe compared to those countries that do not have any anti-dumping duties, we will be higher (in price) in the marketplace. That’s just a fact. But ultimately, the independent consumer of our products will end up paying more, because as we raise the price to our customers, they will raise the price to the ultimate end user.”

Bridgestone faces not only a tariff that’s four times higher than any other tiremaker in Thailand, but also the added penalty of having to pay a tariff retroactively on TBR shipments that came to the U.S. from its Thailand factory as far back as February.

The DOC says it was “unable to verify the accuracy of Bridgestone’s reporting with respect to its sales data (and) as a consequence, we find that Bridgestone’s reported sales data are unverified and thus cannot serve as a reliable basis for calculating an accurate margin” for the tiremaker in this investigation.

Typically, the agency would use the tiremaker’s data to determine how much of a tariff to levy. But despite months of back-and-forth between the DOC and Bridgestone in filings, as well as the tire manufacturer’s efforts to explain its numbers, the agency ultimately relied on what it calls “facts available with an adverse inference” to calculate a rate for Bridgestone.

Bridgestone is being penalized because the DOC must use other data to measure the flow of the company’s imports throughout the period of investigation.

That data indicates “there was a massive increase in the volume of imports of the subject merchandise from Bridgestone during the critical circumstances period. Therefore, we are finding that critical circumstances exist with respect to imports of truck and bus tires from Thailand from Bridgestone.”

In this case, the retroactive tariffs will apply to shipments from Feb. 20, 2024, to May 19, 2024. (The starting date is 90 days before the DOC published its preliminary determination in this tariff investigation.) And importantly, for those retroactive tariffs, Bridgestone’s tires will be levied a tariff of 2.35% — which matches the original tariff rate the DOC considered.

Bites Gills Point S continues expansion with acquisitions

Hsu joins SRNA

Sumitomo Rubber North America Inc. (SRNA) has hired Ken Hsu as vice president of marketing for Falken Tires. Hsu previously served as vice president of marketing and strategy at U.S. AutoForce LLC. He also held roles at Yokohama Tire Corp., Tire’s Warehouse and Volvo Cars. He will oversee product planning, sales strategies and marketing.

Southern Tire Mart grows Columbia, Miss,-based Southern Tire Mart LLC, the largest commercial tire dealership in the United States, has opened four new locations in three states during the fourth quarter of 2024. The new outlets are located in Mobile, Ala.; Gainesville and Georgetown, Texas; and Bloomington, Calif.

Conti promotes marketer

Continental Tire the Americas LLC has named Ashok Vedanayagam as head of marketing for passenger and truck tires for regions in North and South America. Among his duties are product management, marketing communications and pricing and strategic planning. He joined Continental in 2014.

Hankook is BMW OE

Hankook Tire America Corp. is supplying the Ventus S1 evo Z ultra-high-performance tire as original equipment for the BMW M5. The seventh-generation hybrid vehicle is outfitted with the tire in size 285/40 ZR20 on the front axle and 295/35 ZR21 on its rear axle.

Yokohama updates deal

Yokohama Rubber Co. Ltd., in a statement released on Nov. 14, said that its acquisition of Goodyear Tire & Rubber Co.’s OTR tire business unit is “proceeding smoothly.” The sale of Goodyear’s OTR tire business to Yokohama, which was announced this past July, is subject to regulatory approvas and is scheduled to close early next year.

Gills Point S Tire & Auto Service has finalized two more acquisitions. One marks its biggest deal yet and the other involves the purchase of the second-largest Point S tire dealer in the country.

First, Gills has bought Peerless Tyre Co. dba Peerless Tires 4 Less. The Denver, Colo.-based Peerless Tires held 50 locations across Colorado, Kansas, Nebraska, New Mexico, South Dakota, Texas and Wyoming.

“This acquisition is a pivotal moment in our growth journey,” says Eric Gill, CEO of Gills Point S Tire & Auto Service. The Peerless deal represents the largest acquisition in the company’s history.

“We are proud to not only expand our reach, but to welcome the dedicated employees of Peerless Tire into the Gills Point S family. We look forward to continuing the legacy that Sam has built.”

“We are proud to not only expand our reach, but to welcome the dedicated employees of Peerless Tire into the Gills Point S family,” says Eric Gill, CEO of Gills Point S Tire & Auto Service (left). “We look forward to continuing the legacy that Sam (right) has built.”

Sam Forbes, the selling owner of Peerless Tire, has worked for the 75-year-old company since he was in high school. “The sale to Gills is going to give our 250 Peerless employees new opportunities,” says Forbes. “More than anything, my hope is to give them the feeling that their lives are better. They are an amazing team and now they get to bring their ideas to a new growing company.”

Peerless Tire held the No. 27 spot on the 2024 MTD 100, while Gills Point S was ranked No. 19.

Weeks after closing the Peerless purchase, Gills Point S acquired Bruneel Point S Tire & Auto Service, a 13-store operation with 12 locations in Idaho and one in Oregon. Gills Point S now has 134 locations in 17 states.

The expansion with Bruneel Point S also marks a deal between two long-time Point S tire dealers and leaders within the larger Point S USA/Tire Factory Inc. cooperative. Owner Craig Bruneel and Gill have both served as the chairman of the Point S board.

“Craig and I have always believed in putting family and community first and this acquisition allows us to continue that tradition together,” says Gill.

“We are thrilled to welcome Bruneel Point S to the Gills Point S family. Our teams share the same values and commitment to excellence and we look forward to welcoming the strong team they have established in Idaho over the years.”

Bruneel family members and leadership will be among the Bruneel Point S employees joining the Gills Point S operation. Those family members represent the third generation of Bruneels in the family tire business, which was founded in 1966 and is based in Boise, Idaho.

Bruneel Point S was tied for No. 89 on the 2024 MTD 100 list of largest independent tire dealerships in the U.S.

“We’ve always taken pride in being a family business that customers can rely on,” says Craig Bruneel. “Joining forces with Gills Point S means that our customers will continue to receive the quality service they know, while benefiting from Gills Point S’s expertise and expanded reach.”

The ongoing growth of Gills Point S has also helped the larger Point S USA cooperative climb toward its goal of having 500 stores in 50 states by 2028. The group has eclipsed the 400-store mark and currently covers 32 states.

Photo: Gills Point S Tire & Auto Service

Numbers ThatCount

Relevant statistics from an industry in constant motion

20%

Consumers who plan on buying or leasing an electric vehicle within the next year.

Source: Hankook Tire America Corp. Gauge Index

Hankook Tire America Corp.

40.7%

Share of Gen Z respondents who wait to see if a vehicle problem goes away rather than immediately seeking service.

Source: MarketWatch Guides survey

250,000

TIA has trained and certi ed more than a quarter-million technicians since 1997.

Source: Tire Industry Association (TIA)

66%

Share of the consumer tire retail channel that independent tire dealers represent.

Source: MTD Facts Issue

Flynn’s Tire & Auto Service

51%

Independent repair shops that reported a lack of diagnostic repair information forced them to send vehicles to a car dealership for service.

Source: Auto Care Association survey

327834742 © Starzon450 | Dreamstime.com

Photo:
Photo:
Photo: MTD
Photo:
Photo: 80060421 | amstockphoto | Adobe Stock

Your Marketplace

TAnother topsy-turvy sellout report MILES

DRIVEN SHOWS PROMISE, BUT DEMAND FALLS SHORT

ire dealers tell us that retail sellout trends were down low single digits year-over-year in October, lagging September results. Independent dealers highlighted average sellout declines of 1.7% in October, compared to a 1.1% increase in September.

Overall, the trends were slightly down for the entire third quarter.

Regionally, the best news was that dealers in the Southwest were flat, while others were down slightly. The Northwest reported the weakest volume trends, with sellout down a moderate 2.1% year-over year.

So after a quiet summer, September and the fall season started out on the right foot — but tire dealers indicted those trends were short-lived, with seasonally warm weather likely distracting replacement tire buyers from the upcoming winter season. This ultimately led to another month of deferment.

Looking forward, we note that November has a neutral comparison, as retail sellout was flat in November 2023. Given another month of deferment and weather that is starting to turn and result in snow in some regions, plus with another healthy miles driven report from October, we wouldn’t be surprised to see flat or even slightly positive sellout volumes in November, when total data is counted.

MILES DRIVEN TICKS UPWARD

Speaking of miles driven, those numbers once again look favorable. The mileage

‘The trends were slightly down for the entire third quarter.’

trend was up mid-single digits in October and that’s coming off a third quarter with a low single-digit increase. The October Miles Driven Momentum Index was up 5.5% in October, following a 1.2% increase in September.

We continue to see miles driven trends that remain ahead of pre-pandemic levels and we expect to continue to see flat-to-slightly-elevated trends going forward.

THE RAW MATERIAL QUESTION

The price of raw materials needed to build a basic replacement tire has been on the rise in 2024. In the second quarter, cumulative prices increased by 9.5% year-over-year and in the third quarter the increase was even higher: 10.9% year-over-year. If raw material prices were to hold steady, it would add up to a 10.1% year-over-year increase in input costs for the fourth quarter and a 1.8% rise from the third quarter.

One interesting figure is specific to oil prices, which had been on the rise throughout 2024, but then dipped in August and then fell again by 21% in September. On the flip side, natural rubber costs increased 73% year-over-year

in September due to supply pressures in Southeast Asia.

The price changes in other inputs — synthetic rubber, carbon black and tire fabric/cordage — were more moderate, with synthetic rubber up 13.5%, while carbon black and tire fabric/cordage dropped 0.8% and 3.3%, respectively.

THE REPORT FROM DEALERS

One-third of our tire dealer contacts said they saw negative demand trends in October, a decline from the 26% net positive demand in September. Consumer deferment and trade down have been consistent themes in recent months. We believe that continued into October. As consumers continue to trade down to tier-two and tier-three tire brands, tire dealers continue to report soft trends for premium, tier-one products.

As further proof of the trade-down, tierthree brands were the most in-demand in October. That’s six straight months with tier-three tires being the top drivers. We can’t help but continue to note this is different from our long-term trend where tier-two brands are the most in demand by consumers in more than a decade worth of our surveys.

In October 2024, tier-two tires were in second place in our tier rankings, while tier-one tires remained in last place for a third consecutive month.

We see this as an indication of the type of buyer who is in the marketplace. Even though we do see a high level of volatility in our month-to-month tier rankings, we still expect tier-two tire brands to be the most in-demand since they offer consumers a balance of cost and performance. ■

SOURCE: NORTHCOAST RESEARCH ESTIMATES

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. If you would like to participate in the monthly dealer discussions, contact him at john.healy@ northcoastresearch.com.

PARADE OF PRODUCTS SUPPLIERS SPOTLIGHTED NEW

TIRES, TOOLS AT SEMA

SHOW

Numerous companies used last month’s SEMA Show as a vehicle to launch and spotlight new tires, tools and other products. Here’s a look at what was highlighted on the show oor. (SEMA Show exhibitors are listed in alphabetical order.)

American Kenda Rubber Co. Ltd. spotlighted two new tires, including one for electric vehicles (EVs).

e Vezda UHP A/S2 is a new, ultrahigh performance tire that will be available in nearly 40 sizes, tting wheels ranging from 17 inches to 21 inches in diameter.

According to Kenda o cials, the M+Srated tire features sipes for optimal snow traction and handling; four main grooves that channel water and provide enhanced wet handling and hydroplaning resistance; and more.

Also new from Kenda is the Vezda UHP A/S2-EV ultra-high performance tire for EV applications.

e tire, which comes with a 30,000mile warranty, “combines the performance bene ts of the Vezda UHP A/S2 with the needs of today’s most popular EVs,” say Kenda o cials. “ is tire com-

“Our survey confirms a growing enthusiasm among technicians for technology’s role in shaping the future of automotive service,” says Chris Garcia, head of U.S. automotive at Anyline.

bined balanced traction in wet, dry and light snow conditions with dynamic handling and a quiet, comfortable ride.”

e Vezda UHP A/S2-EV will come in one 18-inch size, three 19-inch sizes and two 20-inch sizes.

Both new Kenda tires will be available in early-summer 2025.

Anyline announced that Sun Auto Tire & Service Inc. has integrated Anyline’s AI-powered Tire Sidewall Scanner and Tire Tread Reader across its 470-plus retail locations. e platform streamlines data collection, reduces errors and integrates with existing digital inspection systems.

Anyline’s recent survey of 224 technicians highlighted the industry’s growing reliance on technology, with 70% saying half of their tasks depend on it. Sixty percent showed interest in smartphone-based tire tread measurement, while 72% found manual data entry time-consuming.

Nearly half of the survey respondents cite a technician shortage as the biggest challenge they’ll face over the next decade.

ASA Automotive Systems Inc. launched an integrated payment solution tailored for tire dealerships. ASA Pay is designed to simplify the payment process by working directly within a tire dealership’s point-ofsale system, reducing the need for manual

data entry, according to ASA o cials. is provides faster check-out times and helps tire dealerships minimize errors.

Switching to ASA Pay also allows tire dealers to reduce credit card processing fees. And with PCI-compliant, encrypted processing, ASA Pay secures business and customer data, which lowers the risk of fraud or data breaches.

Tire dealerships can accept various payment methods, including credit and debit cards, or mobile options like Apple Pay or Google Pay.

ASA Pay is now available to ASA’s TireMaster customers. ASA has plans to extend this payment solution to ASA’s enterprise dealers using TireMaster Enterprise and TireMaster GTX.

Atturo Tire Corp. added 24 new sizes to its AZ810 line for a total of 58 sizes.

“With this release, Atturo has now added 98 new sizes to the portfolio this year,” according to Atturo officials. “Atturo now o ers the AZ810 in sizes that cater to popular vehicles, like the Nissan Rogue, Ford Mustang, BMW 7-series,

The Vezda UHP A/S2-EV (pictured) and the Vezda UHP A/S2 will be available from American Kenda Rubber Co. Ltd. Photo: MTD
Photo: MTD
“With ASA Pay, tire dealers can realize substantial savings, regardless of business size,” says Jared Bailey, director of TireMaster Operations at ASA Automotive Systems Inc.
Photo: MTD

Tesla Model 3, Audi Q4 e-tron, Dodge Durango SRT and many more, ensuring coverage across a diverse array of tments and vehicle types.”

Key features of the AZ810 include 3-Peak Mountain certification and enhanced all-weather grip; 3D sipes and multiple biting edges with an asymmetrical tread pattern for improved traction on snow and wet surfaces; and more.

Atturo also unveiled its new Trail Blade H/T tire, which is designed for SUVs, crossovers and pickups.

e Trail Blade H/T features 3-Peak Mountain Snowflake certification — Atturo’s fourth tire carrying this certication. e tire also features four center channels that ush water, a bold sidewall design and more.

e initial series includes 20 sizes, tting wheels ranging from 16 inches through 22-inches in diameter. e range includes metric, LT and C-class rated tires.

Autel U.S. highlighted its MaxiSYS IA1000WA fully automated ADAS targeting system.

e MaxiSys IA1000WA is a fully automated and advanced diagnostics, wheel alignment and advanced driver assistance system (ADAS) calibration system.

e product features optical target placement; precise camera and laser blind spot;

adaptive cruise control and around-view monitoring pattern positioning; unlevel oor compensation; and target validation and reporting.

Other features of the ADAS targeting system include fully automatic four-way robotic target placement, where the technician can simply position the system in the area and then initiate calibration with a single button click.

e MaxiSYS IA1000WA is powered by the MaxiSYS Ultra Series tablet. Autel o cials say the product should be fully launched in the second quarter of 2025.

Cemb USA/BL Systems Inc. showcased the C-350 wheel balancer and like the C-330 model, the C-350 can handle passenger, light truck and heavy-duty commercial tires — all from a single machine.

Scott Reinholt, national director of sales and business development for Cemb USA/BL Systems, says the C-350 is versatile and is designed to balance larger and more complex wheel assemblies. It’s suitable for high-volume tire dealerships and automotive repair shops, as well as industrial applications.

e unit’s upgraded digital interface and features provide more precision and

ease of use for technicians. Its spindle sha provides improved centering, while Sonar technology measures radial and lateral run-out accurately.

e Coker Group highlighted its Coker Classic Star Series, which has been engineered with new molds and compounds. It comes with both a wide and narrow whitewall style and is designed with a lownoise tread pattern. Several of the 28 sizes available, especially those used on larger cars, feature reinforced sidewalls, which categorizes them as “Extra Load” (XL) tires.

Atturo Tire Corp. has expanded its AZ810 line with the addition of 24 sizes.
Photo: Atturo Tire Corp.
The MaxSYS IA1000WA from Autel U.S. is an advanced diagnostics, wheel alignment and advanced driver assistance system calibration system.
Photo: MTD
The new C-350 from Cemb USA/BL Systems is designed to balance larger tire and wheel assemblies.
Photo: MTD
Photo: MTD

SEMA Show

The tires will be available in the range of 13-inch to 17-inch, with the bulk of options falling in the 14-inch and 15-inch range.

Mark Mooberry, commercial vice president of the Coker Group, said the company is expanding its product coverage to fill gaps and will serve as the exclusive distributor in North America for the Avon, Dunlop and Ensign tire brands. Continental Automotive Systems Inc. has launched a Spanish language version of its REDI-Sensor TPMS website: www. redi-sensor.com/es. The site is designed to serve as an information hub for the growing

number of Spanish-speaking technicians in the U.S. It also includes application look-up information, training, installation and relearn instructions, as well as information and downloads so technicians can keep their TPMS tools and software up to date.

Continental Tire the Americas LLC’s racing brand, Hoosier Racing Tire Corp., won the New Products Award in the Tire and Related product category at the 2024 SEMA Show for its TrackAttack Pro tire.

The TrackAttack Pro, which was launched in September 2024, is an extreme-performance summer tire.

Training will top TIA’s priorities list

CEO Gust listed legislative affairs and other association objectives during meeting

In what has become a traditional kickoff to the SEMA Show, the Tire Industry Association (TIA) officially welcomed its next board president, Debra Hamlin, and other new board officers during the group’s annual meeting.

Outgoing TIA President Keith Jarman passed the gavel to Hamlin, director of operations for Bridgestone Americas Inc.’s Commercial Dealer Network. Hamlin will serve alongside TIA Vice President Russ Devens, Secretary Gary MacCausland, Treasurer TJ Trum and past President Jarman.

The association also recognized those stepping down from board member positions, including Jim Pangle, TIA’s 2022 president. Pangle is retiring this year after being with the association for 30 years.

Also stepping down this year are Don Vanderheyden and Leigh-Anne Stewart.

Dick Gust, CEO of TIA, remarked that TIA concluded the 2023 fiscal year “at a strong operational position.”

Gust said that TIA is focusing on five topics for next year to better serve TIA’s mission of “providing tire safety in education, act as a principal advocate of government affairs and to en -

Also on display at Hoosier’s booth were its new NemesisX and DR3 tires. The NemesisX, which will launch in spring 2025, is a UTV off-road tire. The DR3 tire is the successor to the Hoosier DR2. It’s a drag race tire designed specifically for classes and events that require a P275/60R15, Department of Transportation (DOT)-approved radial. A new tire profile is designed to maximize performance, while an updated tread pattern is designed to meet minimum DOT standards, while achieving maximum traction.

hance the image and professionalism of the industry.”

Those five focuses include training, especially in the earthmover tire segment; government affairs, which involves building momentum for Right to Repair legislation; professional leadership and helping members find and retain good workers; supporting Truckers Against Trafficking; and continuing to build the Global Tire Expo — Powered by TIA at the SEMA Show.

Gust says the 2024 Global Tire Expo saw a 15% increase of exhibitors, with 242 of them in total. The SEMA Show had 2,400 exhibiting companies.

TIA’s educational sessions during the show attracted 2,000 pre-registered participants for the seminars, which spanned several days.

Gust said he hopes to continue to see growth of the Global Tire Expo and SEMA Show.

At the 2024 Tire Industry Association annual meeting, President Keith Jarman passed the gavel to Debra Hamlin.
Photo: MTD
The Hoosier TrackAttack Pro, which was launched a few months ago, is an extreme-performance summer tire.
Photo: MTD
Continental has created a Spanish translation of its REDI-Sensor TPMS website for technicians.
Photo: Continental
Coker Group President Bruce Ronning told customers and enthusiasts that “Coker Group is back.”
Photo: MTD

Crowntyre Industrial unveiled its new Roadbreaker X/T tire under its Xcellent brand. According to Crowntyre officials, the Xcellent Roadbreaker X/T is an extreme all-terrain tire featuring large, open voids and more aggressive sidewalls.

Italy-based tire service equipment supplier FASEP announced it is integrating a RFID reader into a wheel balancer and is working with Michelin Group in an effort to trace both the life and the service record of individual tires.

Fabio Boni, sales director for FASEP, says an antenna on the wheel balancer reads the tire identification information from the RFID tag inside the tire. This would allow for the tracking of the tire’s wear and full lifecycle and also a complete record of how and when it was serviced.

The machine is a prototype for now, but Boni says FASEP is in discussions with Michelin to install one in the tiremaker’s research center in South Carolina. Boni adds that his company also is working with a consortium of tiremakers on RFID, including Michelin, Continental AG, Pirelli & Cie SpA and Bridgestone Corp.

Gaither Tool Co. showed its four new tools that will be available in 2025, including a larger Bead Bazooka, an updated Wheel Assist, a new lift plate and a battery-powered hydraulic jack.

The new Bead Bazooka comes with a 14-liter capacity and a three-inch valve. It will be available in January 2025.

Jason Moore patented the Moore-Safe Jack, which is manufactured by Gaither, and now Gaither has developed a lift plate for the jack. The lift plate has a 50-ton capacity and a cut-out section in the middle to secure a jack. It will be available in the second quarter of 2025.

Gripmax Tires Inc. introduced a range of different products tailored to meet the

needs of American drivers as the company expands into the U.S. market.

Gripmax displayed its MaxGrip line of tires at its booth.

The company says its MaxGrip A/T tires are designed for all-terrain driving with traction and durability, while its MaxGrip M/T tires are optimized for extreme conditions, like mud terrain.

For the long haul.

Prinx Tires prioritizes practical performance through its broad range of high quality commercial and consumer tires—at a price point that leaves room for you to make your margin and your customers to meet their budget.

Check out the full line of TBR tires today.

Scan below to become a dealer, or email us directly for an introduction at info@prinx.us.com

prinxtireusa.com

PDW1 – the all-new regional winter drive tire
Gaither Tool Vice President Jeff Alexander demonstrated the company’s newest jack, which is powered by an 18-volt battery.
Photo: MTD

SEMA Show

TIA provides Right to Repair update

Experts explain why a federal ‘blanket bill’ is needed

The Tire Industry Association (TIA) hosted a Right to Repair Summit before the start of the SEMA Show and exhorted attendees to support Right to Repair legislation.

“Our responsibility to our customers encompasses all aspects of tire and auto safety,” said Dick Gust, CEO of TIA.

“That starts with access to data software, replacement components, telematic system repairs, training and diagnostic tools. These resources must be made available to all independent repair facilities.”

Bill Hanvey, president and CEO of the Auto Care Association, discussed what the Auto Care Association is doing for the Right to Repair fight.

According to Hanvey, the Auto Care Association surveyed 700 independent repair shops and 51% of respondents said that they had to send up to five vehicles a month back to car dealerships because they were not able to access the diagnostic information or maintenance information.

“When the shop finally concedes the job to the dealer, the technician spends four hours trying to diagnose that vehicle,” and Hanvey said independent shops usually end up eating the cost of that diagnostic time. “And it’s just going to get worse as these cars become more technological and the newer cars come into the maintenance cycle — this is our fight.”

Hanvey touched on what his association is doing at a state and federal level to push for Right to Repair legislation.

He explained that the automakers’ lawsuit in Massachusetts is still unresolved and the association is still seeking a reversal of the National Highway Transportation Safety Administration letter telling automakers not to comply with the already-in-effect Data Access Law in Massachusetts, noting it “conflicts with and therefore is preempted by” the National Traffic and Motor Vehicle Safety Act..

Last November, voters in Maine approved Right to Repair legislation with 86% of total votes.

“We are actually further along in Maine because now we are forming a governing body that would put down the mandates of how this law is going to be implemented,” said Hanvey.

Hanvey said the association needs some help at the federal level.

“We can’t go to all 50 states. The Auto Care Association would be broke. TIA would be broke.

“So we initially wanted to put pressure on the automakers to find out how they are going to react to this.

“So now, we unequivocally need federal legislation as a blanket, so that all 50 states, all our members, all our customers and everyone in the supply chain can abide by one single law.”

That was started with the HR-906 Repair Act and over the course of two years, the bill has received 56 bipartisan co-sponsors.

This act was one of 6,000 bills introduced into Congress last session and it’s about one of 10,700 pieces of legislation introduced to the House, according to Hanvey.

“As you can see starting out, the odds are against us,” he said.

“Politics got in the way and for reasons unknown, our bill was pulled from consideration from the committee — and we were crushed.”

Fortunately, “we do not have to start from the beginning. We have built tremendous political capital in Washington about this bill and issue and we are going to continue to build on that momentum.”

MaxGrip R/T tires feature a combination of on-road and off-road capabilities while the MaxGrip X/T is tailored for off-road enthusiasts.

Gripmax also highlighted its MaxGrip Classic/Vintage tires with a colored sidewall stripe for a vintage-inspired option. A mobile app from Hamaton Inc. will help owners of trailers, recreational vehicles and other non-TPMS enabled vehicles monitor the condition of their tires.

Hamaton’s Retro-Pro BLE provides realtime tire pressure and temperature data via a mobile app, which offers audio alerts and visual notifications of any problems so drivers can take quick action to detect leaks and prevent tire loss. No diagnostic tool is needed to configure the sensor and the app is accessible via a QR code on each sensor.

The kit, available with either four or six sensors, is expected to be available on the market in either late-December or early-

Hamaton’s Retro-Pro BLE TPMS kit is designed for use on trailers, recreational vehicles and passenger vehicles and light trucks where TPMS wasn’t installed by the original equipment manufacturer.
Photo: MTD
Gripmax displayed its MaxGrip line of tires at its booth.
Photo: MTD

January 2025, says Hamaton Marketing Manager Steve Hodges.

Hankook Tire America Corp. showcased a range of offerings, including its new Weatherflex GT, outside the Las Vegas Convention Center.

Also on display at Hankook’s booth were Dynapro tires for SUV and off-road vehicles, Hankook’s iON line for electric vehicles and Laufenn-brand tires.

The full Dynapro lineup ranges from all-season highway tires, such as the Dynapro HT, to the all-terrain Dynapro AT2 Xtreme, the Dynapro XT for rugged-terrain applications and the Dynapro MT2, which has been engineered to deliver enhanced performance in muddy environments.

The Weatherflex GT is the first tire in Hankook’s new all-weather Weatherflex range and is 3-Peak Mountain Snowflake-certified. Hankook designed the Weatherflex GT to accommodate a variety of fitments, from compact to full-size vehicle segments.

Hankook says its Laufenn brand encompasses a well-rounded range of

quality products, including the S Fit AS, the X Fit AT and more.

“The SEMA Show is a unique opportunity to come together with leaders in the automotive aftermarket industry,” said Rob Williams, president, Hankook Tire America Corp, before the event.

Horizon Tire Inc. debuted four new tires available for dealers next year, with three under its Supermax brand and one under its Crossmax brand.

Horizon released its Crossmax EV-1 premium touring tire engineered specifically for electric vehicles. The all-season

Hankook Tire America Corp. showcased its range of offerings at the 2024 SEMA Show, including its Dynapro line, its new Weatherflex GT, Hankook’s iON line for electric vehicles and the company’s Laufenn brand.
Photo: MTD

SEMA Show

Hunter Engineering Co. Inc. demonstrated its new training platform, Hunter University, during the SEMA Show. The program provides all of Hunter’s educational content in a single place.

Hunter Engineering Co. Inc.

tire comes in five sizes and has four circumferential grooves to enhance wet road stability. The Crossmax EV-1 is mud- and snow-certified and comes with a 45,000mile limited treadwear warranty.

Under its Supermax brand, Horizon highlighted the Supermax RTX-1, Supermax TR-1 and the Supermax ATX-1. The Supermax RTX-1 is a rugged terrain, all-season tire and comes in 10 sizes.

The Supermax RTX-1 comes with a 40,000-mile limited treadwear warranty. The mud and snow-certified tire comes in 25 sizes with a 45,000-mile limited treadwear warranty.

The Supermax ATX-1 all-terrain, all-season tire features an improved siping pattern. It comes in15 sizes with a 45,000mile limited treadwear warranty.

Hunter Engineering Co. Inc. demonstrated its new training platform, Hunter University, during the SEMA Show. Hunter University collects all of Hunter’s learning

content in a single place — offering dozens of free online courses worldwide, as well as streamlined registration for hands-on, in-person courses at training centers.

“Given the industry’s critical need, we recognize our responsibility to help train current and future technicians,” says Tom Settle, field development director for Hunter. “Hunter University makes it easy to select training in the way that suits each person best.”

All existing content was updated and refreshed as part of the nine-month effort, often converting from PowerPoint presentations to shorter modules with narration and video. The online courses are generally presented in five-minute segments.

Additionally, courses are accessible internationally and available in 21 languages. The course catalog offers instruction on numerous automotive service topics.

Hunter University courses are designed to provide a foundation of concept theory, before completing with hands-on training, according to Hunter officials.

Although training takes place with Hunter equipment and technology, students will be able to use what they’ve learned in any environment. Currently, the most popular courses are Introduction to Alignment, HunterNet 2 Tools and Uses and ADAS Overview.

JK Tyre & Industries Ltd. released the new Elanzo Touring-Plus tire. And with production based in Mexico, company leaders believe it will be more accessible to dealers and customers in the U.S. market.

Ashutosh Kejriwal, head of marketing for the company — which has its roots in India, but also has a manufacturing home in Mexico — says producing the Elanzo

Touring-Plus tire and other JK Tyre products in Mexico for the U.S. market “will provide faster delivery” for customers.

The Elanzo Touring-Plus tire was named a runner-up in the 2024 SEMA Best New Products Award tire category. The tire is designed for premium touring applications with a design that offers “superior comfort, low noise and best-in-class handling.” The tire is available in 14 sizes.

Kumho Tire USA launched three new ultra-high performance tires: the Ecsta Sport All-Season PA71, the Ecsta Sport PS72 and the Ecsta Sport S PS72.

“The Ecsta Sport All-Season PA71 is an ultra-high performance all-season tire featuring a next-generation compound technology designed to enhance grip and traction,” say Kumho officials. “The tire also comes with a 50,000-mile treadwear warranty.

“The Ecsta Sport All-Season PA71 includes lateral grooves in the tread design to aid in water drainage in order to maintain performance in wet weather. Snow performance is enhanced with zig-

The Crossmax EV-1 from Horizon Tire Co. is mud- and snow-certified and has a 45,000-mile treadwear warranty
Photo: MTD
Photo:
Neeraj Jain, CEO, on the left, and Ashutosh Kejriwal, head of marketing, right, for JK Tyre, say the company’s focus on manufacturing products in Mexico for the U.S. market will provide fast turnaround times, which they believe will be attractive to American tire dealers.
Photo: MTD
Kumho Tire USA highlighted its Ecsta Sport A/S PA71 (pictured on right).
Photo: MTD

zag grooves on the inside tread blocks. The tire is also comfortable and quiet, with rounded edges of the tread blocks to help minimize noise and provide comfort by dispersing impacts from the road, and also includes the proprietary K-Noise Defender dimple design to help interrupt airflow through the tire grooves and further minimize road noise.

“The new ultra-high performance summer tire, which will be available in two tread configurations across the Ecsta Sport PS72 and Ecsta Sport S PS72 lines provides maximum traction with an enhanced compound to grip the road and deliver heightened levels of performance in handling, stability, cornering and steering response.”

The Ecsta Sport All-Season PA71 is available in 56 sizes, for wheels ranging from 16 inches to 21 inches in diameter. The Ecsta Sport PS72 is available in 56 sizes and the Ecsta Sport S PS72 in 42 different sizes..

Mickey Thompson Tires & Wheels, which is owned by Goodyear Tire &

Rubber Co., added two 42-inch sizes to its Baja Boss X extreme-terrain light truck tire line.

“These two new sizes, 42x13.50R17LT and 42x13.50R20LT, expand the product line to include a total of four in-demand sizes” for the Baja Boss, according to Mickey Thompson officials. “Built with Mickey Thompson’s Sticky Mickey compound and PowerPly Pro construction,

these new sizes will provide the undisputed off-road traction that competitive off-road racers have come to expect from Mickey Thompson.”

The new sizes will be available in January 2025.

Mitchell 1 is best known for its original equipment repair information for technicians, but the company is enhancing the capabilities of its marketing and manage-

Mickey Thompson Tires & Wheels added two 42-inch sizes to its Baja Boss X (second tire from right) extreme-terrain light truck tire line.
Photo: Mickey Thompson Tires & Wheels

SEMA Show

Mitchell 1’s Manager SE allows tire dealerships to bundle and organize a job on a service ticket to show all of the parts, labor and discounts associated with that single job. Additional views provide a glimpse into the profitability of each task and ticket, too.

Photo: Mitchell 1

ment tools for tire dealers and automotive repair facilities.

On the repair side, Nick DiVerde, senior director of product development for Mitchell 1, says Pro Demand has expanded to ensure the tool has thorough coverage of EVs and hybrids. The latest additions now cover 98% of those vehicles, including VinFast EV models.

In marketing tools, Social CRM can help businesses improve their Google presence, upgrade the look of their websites with new themes and colors and also utilize customer reviews and staff profiles to make their sites pop.

In terms of profitability, the updates in Mitchell 1’s shop management tool, Manager SE, offer new tools to help businesses more easily follow up on deferred service repair work. A new “job view” can help save time and streamline the conversation with the customer. But it also presents the full cost of a job — with parts, labor and any discounts or coupons — all in a single spot on the invoice.

Users can additionally track the profitability of each job on a sales ticket, and DiVerde says the tool allows shops to track gross profit earned per hour.

For service work that is deferred, the job can easily be moved off the current day’s ticket, but stored under the customer’s information so it shows up automatically the next time the customer comes to the counter.

Opus IVS, the intelligent vehicle support division of the Opus Group, released its DrivePro 2 Plus.

Frank Dierlam, inside sales manager for Opus IVS, says that this is not just a diagnostic tool, but rather a diagnostic platform. It allows tire dealers to use software that

Opus IVS introduced its new DrivePro 2 Plus, which creates a “one-stop shop between mobile services we have, our technical support and OE functionality,” said Frank Dierlam, inside sales manager, Opus IVS.

Photo: MTD

dealers may already have on the tools or original equipment (OE) software through the tool, without having to get a laptop or other equipment.

“It truly makes it a one-stop shop between mobile services we have, our technical support and OE functionality,” says Dierlam.

The DrivePro 1 was released in 2018, and this new product is an upgrade of that.

The DrivePro 2 Plus has two software systems loaded into it — the Autologic software, which includes European vehicles, and then AutoEnguinity software, which covers Asian and domestic models.

“We have agreements with all original equipment manufacturers to use their software remotely and push it into the shop to do module reprogramming,” says Jim Fish, chief marketing officer for Opus IVS.

Prinx Chengshan Tire North America Inc. (PCTNA) continues to expand the lineups and size offerings of both the Fortune and Prinx brands.

The company showcased a number of tires from each brand, including new medium truck tires.

Samuel Felberbaum, president of PCTNA, says the brands have 320 passenger and light truck SKUs now and by the end of 2025, will surpass 400 SKUs. The current lines of 80 TBR tires are growing, too.

Among the newest commercial offerings is a winter drive tire for each brand — each has its own unique design.

There’s a new 445/65R22.5 mixed service tire, as well as a mixed-service tire with 3PMS certification, designed for logging, mining and other off-road environments.

Ken Coltrane, vice president of product development and marketing for PCTNA, says the wide-base, mixed-ser-

“The EV Adhesive Removal Kit significantly reduces adhesive removal time from 20 minutes to five minutes,” says Lewis Whitfield, general manager, Rema Tip Top North America.

Photo: MTD

Prinx Chengshan Tire North America Inc. continues to add sizes and new products to both its Prinx and Fortune brands. The Prinx PDW1, a regional winter drive tire, was among the new offerings on display.

Photo: MTD

vice tire stands out among the company’s competitors.

“This new 445/65R22.5 we’re bringing in — very fiew in our tier have that tire, so we’re looking forward to some success there,” Coltrane said. “We already do well with our other two wide-base tires. The uniformity on those tires has been fantastic since the day I got here. We always get that feedback from the field and we expect the same with this new 445, as well.”

Rema Tip Top North America’s new EV Tire Adhesive Removal Kit helps technicians easily remove the adhesive used to affix sound-deadening foam in EV tires.

“The EV Adhesive Removal Kit significantly reduces adhesive removal time from 20 minutes to five minutes, without introducing harmful chemicals, solvents or unrecognized methods to the repair

process,” says Lewis Whitfield, general manager, Rema Tip Top.

“To reach the inner liner and perform a proper (EV) tire repair, the adhesive inside the tire must first be removed,” says Whitfield, who adds that the EV Tire Adhesive Removal Kit allows techs to prepare EV tires for a proper repair in accordance with industry standards, while letting techs use their tire repair of choice.

The kit consists of a roloc disc, quick change adapter and a holder. “It’s an opportunity for shops to charge for an EV tire repair.”

Schrader TPMS Solutions is preparing for a future with tire pressure monitoring systems for commercial applications. Mariam Lochoshvili, the company’s senior marketing communications manager, says Europe introduced TPMS requirements for commercial trucks manufactured in the European Union in 2024.

“In the last couple of years we’ve seen growing interest in truck TPMS,” Lochoshvili says. And as a result, the company has responded with commercial TPMS sensors for Scania, Kenworth and Peterbilt trucks and Prevost and Volvo buses.

Schrader is also developing a training program for truck TPMS.

The new year also will bring the AirCheck BLE retrofit kit, which is designed for use on towable trainers, recreational trailers, motorhomes and even passenger cars that weren’t originally outfitted with TPMS capabilities.

Lochoshvili says the app is expected to be available in January.

Schrader is using the same BLE technology in a line of replacement TPMS sensors for electric vehicles.

Sentury Tire USA showcased seven new tires from its family of brands at the 2024 SEMA Show.

Sentury Tire USA’s Landsail brand is introducing its first all-weather tire, the RapidDragon RD-365 LMD (last-mile delivery) tire. The tire features all-weather technology and is 3-Peak Mountain Snowflake (3PMS) certified.

Also newly released under the Landsail brand is the all-season RapidDragon RD3 AS, which features 3D sipes to improve traction in winter conditions.

“We’re excited to be launching a new product for the all-weather segment,” says Maxwell Wee, executive vice president of Sentury Tire USA. “Landsail’s all-weather option is just the beginning of this bold

series, complemented by upcoming all-season patterns. We’re proud to be delivering products with superior technology that provide new and improved solutions for our partners.”

Under its Delinte brand, Sentury Tire

USA also showcased the Centurion X/T, a crossover that features an x-shaped pattern block design for a multi-directional grip, inside its SEMA Show booth.

Also new under the Delinte brand is the Centurion A/T, which features

Release all types of adhesives bonded to the metal without the collateral damage of open flame with the Inductor Max Kit. The kit is completely portable with the induction inverter mounted in a carry case. It offers audible and visual power indicators.

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Mariam Lochoshvili, senior communications marketing manager for Schrader TPMS Solutions, said Schrader is bringing commercial truck TPMS products to market, as well as retrofit kits that use Bluetooth technology to monitor tires on towable and recreational trailers.
Photo: MTD

SEMA Show

an all-terrain tread compound that is 3PMS-certified.

The Delinte DV3 LMD AS tire provides traction for all seasons and is 3PMScertified, as well.

The company also displayed Sentury-branded tires, such as the Sentury RoadTrexx H/T and TerrainTrexx A/T, which feature 3D sipes designed to improve acceleration in winter conditions. Both tires are 3PMS-certified.

Snap-on Inc. highlighted its V4400 Commander wheel aligner under its John Bean brand.

The V4400 Commander uses an intelligent installation flow to ensure proper setup for each shop’s specific needs. Its dual-tower system features two remote alignment posts equipped with two high-resolution cameras that provide a comprehensive, stable field of view and reduce the need for frequent camera adjustments.

This configuration does not require a cross-view camera, eliminating the need for a line of sight between the alignment towers and enhancing the system’s flexibility, according to Snap-on officials.

In addition, the new dual-tower design accommodates a variety of vehicle lengths and widths, bay setups and drive-through compatibility.

It can service vehicles as close as 55-inches from the turntables with a working range up to 200-inches. The exclusive long wheelbase mode enables service on light commercial vehicles up to 29-feet long.

Also featured on the new product is the company’s artificial intelligence (AI) component, the AIKnow, which reviews OEM information so technicians can ask any wheel alignment question and receive accurate answers in seconds.

By gathering data from service manuals and OEM specifications, Snap-on says AIKnow gives reliable and up-to-date information to help streamline the alignment process and enhance shop efficiency.

Tire Group International LLC (TGI) added the GripIt XT, an all-terrain tire, and the Kurrent, an electric vehicle-ready tire, to its Cosmo range. Both tires were highlighted inside TGI’s SEMA Show booth.

The Cosmo GripIt XT features TGI’s Quiet Kat Technology, engineered to provide enhanced noise reduction; DSS (Directed Super Silica), a proprietary technology that reduces rolling resistance and optimizes wet traction and tread life; and TGI’s Ultimate Tire Technology.

The all-terrain and mud-rated tire sports “a versatile tread design, alternating/scalloped shoulder lugs, stepped ridges and stone ejectors (and) vertical divots in the outer tread blocks — all working in concert to provide a functional design — providing more traction, better stone ejection in mud and snow, lower on-road noise and enhanced mileage,” according to TGI officials.

The Cosmo GripIt XT, which will come with a 50,000-mile warranty, also lets buyers choose their own “look” thanks to “two distinct sidewalls. One side has raised black lettering for an aggressive look, while the other has indented UHP-inspired lettering that offers a sleek, understated appearance.”

The tire will enter phased production this month and will be available in 14 sizes, fitting wheels ranging from 17 inches to 22 inches in diameter — in a mix of P-metric and LT configurations — by February 2025.

Also new from TGI is the Cosmo Kurrent, an EV-ready product, that comes with a built-in treadwear indicator.

The tire has been “meticulously engineered and crafted to meet the unique demands of electric vehicles,” according to TGI officials. “It’s designed with advanced technology to ensure optimal performance, safety and efficiency for EVs.”

Like the Cosmo GripIt XT, the Cosmo Kurrent features TGI’s Quiet Kat Technology for optimal noise reduction, plus other features.

Also featuring the extra-load capacity (XL) designation, the tire comes with a 70,000-mile treadwear warranty and will be available in more than 20 sizes for wheels ranging from 16 inches to 22 inches in diameter.

“Customers will be able to begin ordering (the Cosmo Kurrent) in the January order cycle,” says a TGI spokesperson.

TRAC Inc. announced its aluminum TRAC TireJack leverage tool. Expected to launch in January 2025, it is a lightweight version of TRAC’s original TireJack.

The original product weighs eight pounds, while the new jack will weigh around one pound.

The lightweight construction still has heavy lifting capabilities and features a poly-roller on the bottom to help technicians roll the wheel onto the vehicle safely.

Trimax Tire expanded its offerings with several new products, including the Haida HD697 winter tire for SUVs.

The Haida HD697 sports a variety

The new Cosmo GripIt XT from Tire Group International LLC will be available in 14 popular sizes by February 2025.
Photo: MTD
The original TRAC jack (right) and the new jack (left) were on display at the 2024 Show.
Photo: MTD
Sentury Tire USA displayed its new Delinte Centurion A/T, among many other new products, during the SEMA Show.
Photo: MTD
The Haida HD697 winter tire is one of several new offerings from Trimax Tire.
Photo: MTD

sidewalls for protection against cuts and abrasions.

The mud tire is available in 24 SKUs ranging from LT285/75R16 up to 37X13.50R24LT.

The Badlands RT is a rugged hybrid tire designed for on- and off-road use. It is available in 23 SKUs and features large tread blocks and a variable pitch pattern.

The Mastertrack Badlands ATX is engineered for crossovers and CUVs. The all-terrain tire is equipped with sidewall cleats, stair-step grooves and cut-resistant compounds. It’s pending 3-Peak Mountain Snowflake approval and comes with a 50,000-mile treadwear warranty.

The product will be available in 14 SKUs, with two available now. The remaining 12 SKUs will be available in the coming months.

The Westlake W-Elite SLII long-haul steer tire has been designed to “endure long-to-regional conditions, ensuring durability alongside optimal wear, fuel efficiency and cost-per-mile effectiveness,” according to ZC Rubber officials.

of features, including four longitudinal pattern grooves with a zig-zag design for optimal handling on snow and ice-covered surfaces; big pattern blocks for enhanced stability when steering; and more.

It comes in 16 sizes, fitting wheels ranging from 15 inches to 21 inches in diameter.

Also new from Trimax is the Haida HD625 all-weather tire, available this month in 47 sizes, with 22 more sizes available in January 2025.

The Haida HD625 features two lengthwise, zig-zag pattern grooves and high-angle crosswise grooves for enhanced water evacuation and steering performance; an all-season tread formula; and more.

In addition, Trimax has added four 23-inch sizes to the Haida HD937 ultrahigh performance tire.

Unicorn Tire Corp. expanded its Mastertrack range with the introduction of the Badlands GT, Badlands MT, Badlands RT and Badlands ATX.

The Badlands GT is an all-season tire designed for a smooth and quiet ride. The tire features four circumferential grooves that enhance water evacuation and a pitch design for optimal noise reduction.

The tire will be available in 58 SKUs and will be offered with a five-year limited warranty and 12-month road hazard coverage.

The Badlands MT, which is known for its off-road performance and on-road traction, features an aggressive tread pattern and robust construction. The tire also features deep lugs and reinforced

Zhongce Rubber Group Co. Ltd. (ZC Rubber) launched its next generation of Westlake medium truck tires.

Products in the Westlake Gen II series have been designed for long-haul, regional and mixed-service applications. The tires incorporate “advanced technologies” to reduce tire deformation, lower rolling resistance and enhance longevity and stability, the company says.

Henry Shen, vice president of ZC Rubber, said that the series “has already built a strong reputation in Europe and we’re excited to bring this enhanced lineup — specifically adapted for North American roads — to local fleets.”

He added that the company is confident that the tires in the Westlake Gen II series “will meet and exceed North American market demands.”

New Westlake-brand commercial medium truck tires include the W-Elite SLII long-haul steer tire, which has been designed to “endure long-to-regional conditions, ensuring durability alongside optimal wear, fuel efficiency and cost-per-mile effectiveness,” according to ZC Rubber officials. The tire also is SmartWay-verified.

Another new tire is the W-Elite DA25 long-haul drive tire, which is 3-Peak Mountain Snowflake-certified and has been engineered for all-weather and winter conditions.

Also joining ZC Rubber’s TBR lineup is the W-Elite ZA12 regional all-position/ steer tire, which is also SmartWay-verified and delivers stability, uniform wear and enhanced fuel efficiency.

The W-Elite ZM41 mixed-service all-position tire is “built to excel in both on-road and off-road environments,” and ZC Rubber says it is “capable of carrying heavy loads at lower speeds across a variety of road conditions.” ■

Photo: MTD
The Badlands MT from Unicorn Tire Corp. features an aggressive tread pattern and robust construction. The tire also features deep lugs and reinforced sidewalls for protection against cuts and abrasions.
Photo: Unicorn Tire Corp.

Commercial Tire Dealer ®

Farm tire market in flux

WHAT WILL 2025 BRING?

Inflation, low commodity prices, political uncertainty, adverse weather and several other factors have combined to throw the United States ag tire market off-balance. Is a turnaround in the works? Ag tire manufacturers discuss the current state of the market, what 2025 could bring and what ag tire dealers should continue to monitor in this MTD exclusive.

MTD: We hear the U.S. ag tire market is down. Is that true? If so, why?

THOM CLARK , president, Ascenso Tires North America: Yes, the U.S. agricultural tire market is down this year. This is mainly because farmers are earning less money due to high costs for things like labor and interest rates. Crop prices, especially for corn and soybeans, have also dropped, so farmers are cutting back on spending (on) equipment like tires. Additionally, with less government financial support, farmers are feeling more pressure to save where they can.

LAURENCE BENNETT, assistant vice president, global OHT, Apollo Tyres Ltd. (Vredestein): The U.S. OE ag tire market is experiencing a downturn this year. However, Vredestein is currently seeing strong growth in this segment. As a relatively smaller player, we are less impacted by the broader business cycles affecting the market. Feedback from our customers is mixed, varying by region, but many are finding ways to grow alongside us, despite the challenging landscape.

ALAN ESKOW, vice president, BKT USA Inc.: The agricultural tire market in the U.S. has shown signs of slowing down this year. However, this is not a true net decline, as the situation presently seems rather stable although it is affected by several factors, starting with adverse weather conditions that have affected planting cycles in many areas, reducing the demand for tires. In addition, economic uncertainties related to the election year and geopolitical tensions have created a climate of hesitation among buyers, who prefer to postpone investment decisions, especially the more substantial ones. Factors such as rising interest rates and low commodity prices have further dampened investment in new farm equipment, including tires.

At BKT, we keep innovating to meet the needs of farmers and their demand for solutions focused on greater sustainability. Our technologies improve tire durability and performance, ensuring operational efficiency. Despite economic

challenges, we are confident that these developments will lead to new growth opportunities by the end of 2024.

TONY ORLANDO, president, Bridgestone Integrated Agricultural Tire Business, Americas, Europe, Middle East, India and Africa: Yes, we’ve seen the U.S. ag tire market soften in 2024 due to the downturn in the farm economy. Crop prices have fallen steadily in the past two years. This, combined with high interest rates and increased input costs, is pressuring farmers’ net income potential, creating a reluctance to invest in new farm equipment. In addition, when cash was more abundant in 2022, we saw strong investments by farmers in new farm equipment and technologies. Tire dealers and OEMs built up a lot of inventory at the end of 2022, leading to strong sales for Firestone Ag, but lowering tire demand in 2023 and into this year. Many farmers who purchased new equipment then also don’t need to buy replacement tires yet.

“With less government financial support, farmers are feeling more pressure to save where they can,” says Thom Clark, president, Ascenso Tires North America.
Photo: Ascenso Tires North America

Commercial Tire Dealer ®

The Association of Equipment Manufacturers (AEM) reports that the ag industry has seen lower investment in new farm equipment through August, as total U.S. tractor sales decreased 19% compared to 2023, while combine sales dropped almost 20%. There are some positives because U.S. sales of four-wheel-drive tractors increased nearly 5% compared to 2023 and just over 5% year-to-date, according to the AEM.

RYAN LOETHEN , president, North America, CEAT Specialty Tires: Farmers are traditionally cautious in their purchasing habits during election years, but this year it seems to be affecting new ag machinery sales and ag replacement tires even more so. Normally, you would see an inverse relationship between OE and aftermarket tire sales, but we’re seeing only a slight uptick in replacement tire sales, along with the sizable downtown in new equipment sales, which obviously impacts OE tire sales. An expected surge in replacement tire sales has not materialized this year. Farmers typically hold on to their dollars in uncertain times and there’s a lot of uncertainty regarding federal farm

subsidy bills and tax policy, as well as fuel costs and other expenses. Labor costs have been high and while input costs have moderated some, they are still high. Combine all of these factors with commodity pricing being low and you have some very cautious farmers right now.

There is definitely a flight to value in the farmer mindset. This represents an opportunity for companies like CEAT Specialty, which offers the latest in ag tire technologies with value level pricing.

YDO DOORNBOS , director, North America, GRI: The U.S. Department of Agriculture forecasts that 2024 will present significant financial challenges for American farmers, with net farm income projected to decline by 4.4% to $140 billion compared to the previous year. This decline, which marks a nearly 25% reduction in farm income over two years, is primarily attributed to escalating costs for labor, interest and taxes, coupled with a reduction in government support. These factors collectively strain farm profitability — underscoring the ongoing economic difficulties faced by the agricultural sector — and have resulted in a

reduction of ag tire demand in both the OE market and aftermarket. There have been several other issues to this downturn: lack of advertising, supply chain issues, change of farms and crops and changes in tire designs.

GREG GILLAND , vice president of agricultural segment, Maxam Tire North America: The total U.S. ag market is flat to last year, when we saw a decrease of the total market in both radial and bias tire demand. The shift this year is an increase in radial demand and (a) very small increment in bias. In essence, the market is readjusting from the historical market peak in 2022.

As crop prices continue to rebalance well below the 2022 market peaks — coupled with increased operational costs like fuel, fertilizer, seeds and interest rates (inflation) — farmers are choosing to replace tires rather than machinery. This trend has had a two-part effect on the tire market. OE sales have slowed down from market peak in 2022 and radial tire demand, especially for sizes linked to ag production machinery above 100 horsepower (hp), has increased. The

“Farmers typically hold onto their dollars in uncertain times,” says Ryan Loethen, president, North America, CEAT Specialty Tires.
Photo: CEAT Specialty Tires

Discover CEAT Specialty tires through the lens of our valued partners.

"It's an honor and a privilege to team up with CEAT. What makes me feel really good is when our customers call, they ask for CEAT Tires.

That's the key to making inroads in a market - when you have a tire, people ask for, by name."

"When we first started carrying CEAT, I offered our corporate stores and associate dealers a 60-day no-nonsense guaranteeif you or your end user doesn't like them for any reason, I'll take them back. Not a single tire returned! And now there is no need to follow up. The CEAT tires have done a great job with their capability to roll down the road with a nice, comfortable ride. Our customers are delighted with the CEAT traction on the field.

If you have a good tire that performs well in the field and on the road, you have a winner. CEAT is that tire!"

“The CEAT tire is priced really well, and the customers I’ve sold CEAT to have come back saying how much they like how it works and its overall performance.

I’m all about customer service and am looking forward to selling many more CEAT tires.”

"You can tell a lot about a company by how they keep their manufacturing facility.

We visited the CEAT plant where they make the larger AG radials, and it was nothing short of exceptional Very impressive!"

John
Owner of Tirecraft Picture Butte, Alberta
Trevor Schaab Materials Leader for Bourgault Industries Ltd, manufacturer of Bourgault Air Seeders Owner of Tire Ma manufacture
Brad Schmucker Owner of Millersburg Tire Service, Ohio
Barry Hawn Director of Off-Road Products, Tirecraft, Ontario

Commercial Tire Dealer ®

market that has been negatively impacted is the utility or support equipment (less than 100 hp tractors) in the short term, as farmers and producers are focusing their limited resources (on) their food or revenue generating production machinery.

JESSE BURDETTE , Beyond Road market intelligence manager, Michelin North America Inc.: The U.S. agriculture tire market is down this year across the industry primarily due to lowering commodity prices and revenue pressure on farmers. Michelin believes farmers are conserving capital by delaying as long as possible all discretionary spending through the current season.

FABIO FAVINI , head of sales, marketing and supply chain, U.S.A. and Canada, Prometeon: In comparison to last year, yes. At the beginning of the year, we were optimistic about the growth trends. However, the market since the mid-year period is facing some stagnation. Loss in profits, caused mostly by high inflation in the agricultural market, have led to a loss of income and purchasing power for farmers across the country, resulting in lower investment opportunities for tractor parts, including tires.

JAMES CROUCH , national segment manager — agriculture and forestry, Yokohama Off-Highway Tires America Inc.: The U.S. ag tire market is down this year. High interest rates and low commodity prices early in the year, coupled with the lack of a farm bill and the uncertainty that often occurs in election years, led to low farm incomes and declining demand for farm machinery. As a result, OEM tire sales were off. That left some room for replacement tire sales as farmers kept older equipment in the field, but inventory in the tire sales channel filled a significant enough part of that demand to keep new tire sales soft.

ANDREA MASELLA , commercial director, agricultural, North America, Yokohama TWS: Within North America, yes, the market is down, especially within the OEM segment, due to low commodity pricing and increased input cost for producers. High interest rates are also impacting new equipment purchases and driving increased focus on inventory levels for tire distributors.

2024 Ag Tire Market Share by Segment and Brand

RADIAL REAR OE

SMALL OE

BIAS REAR REPLACEMENT

TRY THEM RISK-FREE FULL-YEAR ASSURANCE PLEDGE

AGRI STAR II RADIAL

You’ve seen the specs on the Alliance Agri Star II that make it a top performer—and top value— among ag radials. Stratified-Layer Technology for more biting edges and more stable lugs. Sturdy bead for extra grip. Premium polyester casing and belts for great dimensional stability. More rubber for your customer’s dollar. Plus, there’s a 7-year warranty and 3-year field hazard protection...and now a full-year Assurance Pledge. If your customer isn’t happy with the Agri Star II for any reason, we’ll credit back 100% of the original cost of the tires towards their purchase of replacement tires of the same size.

Ask your Alliance rep about the Agri Star II, visit yokohama-atg.com or call us at (800) 343-3276.

• Stratified-Layer Technology means more biting edges

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• 7-year materials/workmanship, 3-year field hazard warranty

Commercial Tire Dealer ®

MTD: Can you describe the state of the U.S. ag tire market? What is replacement demand like right now?

CLARK (Ascenso): In 2024, the U.S. ag replacement tire market is steady, mainly because farmers need to keep up with tire maintenance, even as new equipment sales slow down. Despite tough economic times and income ups and downs, investing in tire replacements still pays off by keeping equipment running efficiently and reducing fuel consumption. Newer tech, like durable radial tires, reduces soil compaction and boosts yields, making replacements essential for staying productive. So while the market isn’t booming, these tires are crucial for efficient farm operations.

customers understand that superior tires enhance traction, improve fuel efficiency and extend lifespan, ultimately reducing the total cost of ownership.

ESKOW (BKT): The agricultural tire market has shown a drop compared to the previous year, although the extent of this decline remains somewhat uncertain. Several factors have contributed to this situation. The high cost of seeds and fertilizers has increased farmers’ expenses, while lower prices for raw materials — such as corn, soybeans and cotton — have squeezed profit margins, making it difficult for farmers to invest in new equipment and components, including tires.

The OEM channel, in particular, is experiencing hardship. Companies are

ORLANDO (Bridgestone): Used farm equipment inventories are up, both on dealer lots and at auction. Used equipment prices are coming down, which is a good sign for used equipment sales. This is encouraging for replacement channel demand because farmers typically retool recently bought, used tractors with new tires to better fit their cropping systems. We’re also approaching the end of the year, when farmers make large purchases to offset income as part of their tax management strategies. There is an opportunity for replacement sales to improve later this year and into 2025. We’re optimistic aftermarket tire sales will end the year up or at least even with 2023.

Despite farmers’ current caution and reluctance to buy, manufacturers supporting the U.S. ag tire market continue to invest in developing new technology because farmers continue to seek better ways to farm. Farmers invest in products that help them protect soil health to improve crop yields. Farmers are also interested in greater efficiency to save time and reduce the cost of inputs, such as fuel. To be sure we have the products they need, Firestone is anticipating agriculture’s future challenges. Our expert engineering team at the Firestone Farm Test Center in Ohio collaborates closely with Bridgestone’s global research and development network. Together, we are developing cutting-edge solutions designed to enhance overall equipment productivity and tire durability in the agriculture industry.

BENNETT (Apollo/Vredestein): Currently, there is a noticeable shift among customers seeking alternatives to established brands. Some are opting for budget-friendly options, while others are choosing high-quality alternatives. Budget options help keep initial costs low, but many customers are increasingly recognizing that investing in high-quality tires, like Vredestein, offers the lowest cost per hour and a better return on investment. These

cutting their workforce and reducing production as a result of the falling demand for tires. Despite the unfavorable environment, replacement tire sales are holding up well, thanks to a plentiful harvest in several areas of the U.S. However, it is unlikely that a real increase in the demand for replacement tires will occur before early 2025, once the harvest has been completed and farmers’ availability of resources are assessed.

DOORNBOS (GRI): Despite the anticipated inverse relationship between OE tire sales and aftermarket replacement sales, the U.S. farm tire market has exhibited a deviation from this trend in 2024. While a decline in OE sales is typically associated with a surge in replacement tire demand, the observed data reveals a modest increase in replacement sales. This discrepancy suggests that farmers are currently exhibiting a reluctance to invest in new replacement tires, possibly due to economic concerns or other factors influencing their purchasing behavior. Moreover, after-sales have experienced a less severe decline compared to OE sales. One contributing factor to this is the strategic decision of farmers to extend the lifespan of their existing agricultural equipment. Given the challenging eco-

“High interest rates and low commodity prices early in the year, coupled with the lack of a Farm Bill and uncertainty that often occurs in election years, led to low farm incomes,” says James Crouch, national segment manager — agriculture and forestry, Yokohama Off-Highway Tires America Inc.
Photo: Yokohama Off-Highway Tires America Inc.

nomic conditions in the agricultural sector, many farmers are opting to invest in new tires to prolong the operational life of their current machinery rather than incurring the expense of purchasing new equipment.

GILLAND (Maxam): The ag tire market remains positive for the 100-plus hp machinery, with below-100 hp significantly slower than the previous three years. The replacement channel can win the day only by having tires on the shelf when farmers knock on the door. Farmers and producers are making spot decisions as they measure their profits versus yields in progress in order to invest their meager results as effectively as possible as they close full-year 2024 and prepare for 2025.

BURDETTE (Michelin): Michelin believes the replacement market has been dually impacted this year. First, it is impacted by a wave of OE equipment that was sold over the last three to four years. All of this new equipment is

currently operating in the field and has not yet entered the demand cycle for replacement tires. Secondly, revenue concerns with farmers for this current harvest season are prompting them to delay necessary spending.

FAVINI (Prometeon): The replacement channel remained sizeable in 2024. However, high dealer competition and high inventory stock is causing a potential headache for many tire manufacturers. The risk is that these issues will lead to a fierce pricing battle among manufacturers to maintain their respective market shares. Dealers would be facing a similar pricing battle scenario to maintain healthy sales volumes in their region and as a consequence, this can mean a decrease in overall margins, and less opportunities for investment.

CROUCH (Yokohama Off-Highway): When farmers aren’t buying new machinery, they’re more likely to invest in replacement tires to keep their existing

equipment running. The U.S. replacement farm tire channel demand is picking up as inventories are selling off and the cost of money is dropping, but it’s still a soft year for demand overall.

MASELLA (Yokohama TWS): The replacement channel is slightly down due to significant new equipment sales in the market over the last few years and considering the long life of agricultural tires, this lowers the immediate need of replacement tires.

MTD: What will the U.S. ag tire market look like in 2025?

CLARK (Ascenso): The U.S. ag tire market is set for modest growth, with steady demand for replacement tires as many farmers focus on keeping their current equipment running well, instead of buying new machines. While many are holding off on buying new machinery, quality replacement tires are keeping farms efficient and productive.

Commercial Tire Dealer ®

BENNETT (Apollo/Vredestein): We anticipate a favorable market in 2025, particularly as investments in new equipment have decreased over the past two years. This typically leads to extended use of existing equipment, driving increased demand in the replacement tire market. We expect our Vredestein ag tires to grow significantly faster than the overall market during this period.

ESKOW (BKT): We expect the farm tire market in the United States to remain stable in 2025. The main variable that will influence this scenario will be the price of raw materials. If prices continue to fall due to reduced exports, many farmers will have less cash on hand, making it more difficult to purchase new equipment and components, including tires. In addition, if this year’s crops are not profitable, obtaining financing for seeds and fertilizer will become an even greater challenge for farmers.

The costs of agricultural inputs, such as fertilizer and fuel, are likely to remain high, continuing to put pressure on farmers’ product margins. In particular, conflicts in the Middle East might cause fuel prices to rise sharply, pushing up farm operating costs even further. This scenario will keep uncertainty high and further limit investment in new equipment, including tires.

Conversations with OEMs confirm that the market is not expected to improve significantly before 2026. The current market environment would suggest that economic challenges will persist for at least another year, negatively affecting both the demand for new machinery and new tires.

ORLANDO (Bridgestone): We expect the U.S. ag tire market to still be soft into at least the first six months of 2025 due to current commodity prices, interest rates and the fact farmers are not buying new equipment. However, used equipment supplies and prices are favorable for farmers who want to upgrade. Many farmers will retool the used equipment they buy and tires do not have an infinite lifespan, so replacement sales will happen as needed. In addition, agriculture is cyclical. There are many domestic and global factors affecting the agricultural economy. We’re optimistic that global demand for agricultural commodities will improve, and economic conditions will level out going into the second half of 2025.

LOETHEN (CEAT): The equipment in the field is still relatively new, so we anticipate OE ag tire sales to remain rather weak for most of 2025. This should have a

positive impact on replacement tire sales, which should also benefit from increased farmer income due to commodity pricing bottoming out. We’re optimistic that the replacement tire market will be improved in 2025, but farmers will remain cautious on their expenditures.

We’re seeing a trend of ag tire dealers going to market with a few select brands in the different tiers to benefit from the ease of dealing with fewer tire suppliers and taking advantage of manufacturer buying programs and volume pricing. This was not the case awhile back, when there was short tire supply and dealers had to get tires anywhere they could.

DOORNBOS (GRI): In 2025, we do not expect OE to show growth and dealer feedback is confirming that they are cautious in ordering for spring due to over-ordering last year, as nobody was expecting such a difficult market in 2024. Opportunities are there for GRI, which is producing high-performing tires at an accessible price point, thus offering an attractive value proposition. The tiertwo aftermarket market is growing at the expense of the premium manufacturers.

GILLAND (Maxam): It is too early to predict what the market will look like by

“Factors such as rising interest rates and low commodity prices have further dampened investment in new farm equipment, including tires,” says Alan Eskow, vice president, BKT USA Inc.
Photo: BKT USA Inc.

the first quarter of 2025, but the expectation is that the market will probably remain similar to 2024 if crop prices remain about the same and with radial tire demand continuing to increase yearly. As OE platforms continue to increase in both horsepower and gross vehicle weight to meet the global food demand — as it’s inevitable with a growing population — driving larger radial tires that deliver the necessary productivity (is expected). For the U.S. market, the election’s short- term impact, coupled with market yields, will heavily influence cost parameters of farm operations. This can either positively or negatively affect their purchasing decisions in 2025.

BURDETTE (Michelin): Michelin expects replacement demand to rebound in 2025. While farmers may be moving purchases forward this season, current tires will begin to enter their end-of-life stage, eventually necessitating the need to replace older and worn tires in order to continue operations.

FAVINI (Prometeon): The market is expected to see gradual recovery in 2025, contingent on economic stability and improved farmer income levels. The industry will remain competitive and farmers have a lot of options. In 2025, the market preference will steer more towards high technology and performance.

CROUCH (Yokohama Off-Highway):

Ag markets are always cyclical, but it’s hard to guess when the current cycle will turn upwards. I think we will see the ag tire market pick up in 2025. Grain stocks will ultimately shrink, which will strengthen commodity prices. Interest rates are dropping.

MASELLA (Yokohama TWS): Within the OEM channel, the expectation is for market demand to still be soft throughout the first half of 2025 and then a slow recovery. Within the replacement channel, we see an improvement driven by lower equipment sales over the last 18 months and improved inventory levels of our partners.

MTD: Are there any trends that ag tire dealers should look out for?

CLARK (Ascenso): Ag tire dealers should keep an eye on the rising demand for advanced tires like very-high flexion (VF) tires. VF tires can carry heavier loads at lower pressures, which helps protect soil and saves fuel — great for farms with heavy-use equipment.

Stocking VF tires can be a good move, as more farmers want options that make their equipment tougher and better for the land.

BENNETT (Apollo/Vredestein): There are several key trends in the ag tire sector. Notably, VF tires, which can operate at substantially lower inflation pressures, are becoming more accessible, particularly in both tractor and flotation tire categories. Additionally, radial flotation tires are gaining popularity as customers recognize their benefits for soil health, productivity and fuel savings.

Commercial Tire Dealer ®

ESKOW (BKT): From our viewpoint, agricultural tire dealers should pay attention to several emerging trends in the industry. A major one is the increased use of more powerful and heavier tractors often equipped with equally heavy implements. This has a direct impact on the choice of tires, which must be able to support this more impressive machinery and carry greater loads without compromising performance.

VF tires are becoming increasingly popular, especially for use on tractors. Their ability to operate at lower pressures, reducing soil compaction, is particularly beneficial to farmers. Moreover, IF and VF tires for agricultural implements are also gaining ground, given the increasing mass of implements and the speed at which they are transported on roads.

Finally, the market is currently witnessing the introduction of many new tire sizes, driven by both OEM demands and mainstream demand. As a result, retailers have to manage their stocks more carefully, making sure that they meet customer needs and respond promptly to the demands of a rapidly evolving market.

ORLANDO (Bridgestone): We see farmers look to trusted resources for help making the best decisions possible. They want well-informed advisors who know the features and benefits products offer. Ag tire dealers can be the farmer’s trusted advisor for tire decisions by investing in education and training about the products they sell. At Firestone, we offer training through Firestone University as part of our dealer certification program and field clinics to help dealers educate customers.

Another trend is farms continuing to get larger. With this, farmers are traveling greater distances on the road with their equipment. They want and need tires that have greater wear life and provide a smooth ride on the road, but still deliver great traction and soil-health benefits in the field. We encourage our dealers to keep this in mind when helping customers select tires for high-horsepower tractors. We’ve also seen a lot of farmers adding aftermarket equipment like saddle tanks to apply liquid fertilizer and other crop inputs. Single standard row crop radials that come on the tractor often aren’t built to carry the extra weight. This causes sidewall strain and eventually premature failure. To help farmers avoid issues like this,

we’ve been actively working to educate our dealers about overloading (and) how to avoid overloading by choosing the right tires, properly (setting) up their tractors and (inflating) tires appropriately for the work being done. It’s part of our effort to support our dealers and help farmers get the most from their tire investment.

LOETHEN

(CEAT): It’s more important than ever for dealer personnel to be up on the latest tire technologies and be able to communicate those in a relatable manner to their farmer customers. Farm tires have evolved tremendously in technology as tractors and other farm machinery have progressed. As tractors have grown larger and more powerful, tires have been engineered to handle greater loads. For example, dealers need to communicate the benefits of VF/IF tires, such as minimizing soil compaction and longer tread wear, on this heavier machinery.

Advances in tread design have improved traction and durability. Newer tread patterns are optimized for various soil conditions and can offer better grip and reduced slippage, which enhances efficiency in fieldwork.

Dealers should communicate how advances in tire compounds, designs and construction benefit their customers in areas such as stubble damage. Corn stalks today are much tougher due to genetic engineering, so companies like CEAT have devoted tremendous R&D resources to develop puncture resistance sidewalls. With farmers working more and more fields separated by paved roads, roadability is an increasingly important attribute. Farmers want a smooth and stable ride from their tires on the road, so they are better-rested when they arrive at that next field. Farmers will pay attention to details from their dealers on how a particular tire performs on paved roads.

GILLAND (Maxam): The ongoing trend in 2024 and will probably extend to 2025 is related to opportunity sales. When farmers or producers are ready to buy, the dealers and distributors need to have inventory on hand (less than week) to meet the sale. Maxam’s recommendation is to manage their sellable inventory and take advantage of programs to both plan and schedule replacement stocks. This meets the market need in a timely manner for the first half of 2025.

The past 12 months have been the most challenging for the ag market beyond the container and shipping freight crisis of 2021. If economic and political conditions do not change for 2025, we expect more of the same working conditions as experienced in 2024. Should conditions improve in early-2025 related to previous year crop yields, commodity prices improve or input costs decrease, then pent-up demand will increase additional sales in both the 100plus hp and below-100 hp market machinery segments.

BURDETTE (Michelin): Weather can always play a role in the timing of tire purchases. The agriculture replacement market is very seasonal with the start of spring planting season, as well as around harvest season. Cold weather and rain can delay that activity by a few weeks to a month while warm weather and dry conditions can bring it forward. Michelin advises making sure farmers have the right inventory within the right time frame — a consideration which is crucial to keeping farmers moving.

FAVINI (Prometeon): Dealers should monitor the rising demand for tires supporting more efficient and heavier machinery. The market wants versatile and sustainable products and expects better performance in traction, self-cleaning, soil compaction and fuel efficiency.

CROUCH (Yokohama Off-Highway): At Yokohama Off-Highway Tires, we’re focusing primarily on the value that great tires can deliver to farm equipment. Competing on price in a soft market is a race to the bottom.

MASELLA (Yokohama TWS): Farm consolidations continue — driving needs (for) larger equipment and larger tires to improve more efficiencies and productivity. New technologies, such as VF construction, tire inflation systems and extra-large sizes, continue to gain popularity in the marketplace. Sustainability within all aspects of product and farming continue to drive innovations. Lack of labor is expanding the need for more autonomous equipment. The fundamentals of the industry are solid and the future remains very bright as the U.S. continues to be high producer of agricultural products to not only feed our country, but the rest of the world. ■

Why aren’t all tire specs the same?

TIRE STANDARDS AND EQUIPMENT VARIANCE RANGES ARE IMPORTANT GUIDES

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

QUESTION: Why does the same size ag tire, in a different brand, often have a slightly larger or smaller overall diameter and section width? How much variance can there be and what is the impact on equipment? Do you build product in line with a specific standard or benchmark?

NICK PHILLIPPI , product manager/technical support, North America, Ascenso Tires North America: Ascenso builds all tires to very specific standards. These standards are TRA (Tire and Rim Association), predominantly a standard for North America, and ETRTO (European Tire and Rim Technical Organization) — currently the most widely used standards for off-highway use.

There is an acceptable variance of 3% for outside inflated no load diameter and for section width inflated no load dimensions.

Ascenso R&D will normally design tire specifications to the center of the allowable tolerance.

Where tolerances might come into play would be if the tire fits in the space available on the equipment. Many tolerances on equipment today are very tight. Also, if one manufacturer’s tire is within specifications but at the low end and another is at the high end it could be enough to cause lead or gear issues on MFWD or 4WD equipment. It would be important to calculate RCI (rolling circumference index) of both fronts and rear when replacing either. Use the RCI chart specific to the exact tire you are considering. We always suggest replacing an entire axle to be sure the load is being evenly distributed across all tires and the ODs (overall diameters) are the same. If you are only replacing the front or rear axle it might be a good final check after fitment to manually check the lead-lag to be sure you are still in tolerance.

Photo: Yokohama Off-Highway Tires Inc.

— Nick Phillippi, product manager/ technical support, North America, Ascenso Tires North America

DAVE PAULK , manager, field technical services, BKT USA Inc.: ETRTO (European Union) and TRA (USA Tire and Rim Association) are governing organizations that recommend and furnish engineering information for overall diameters (OD), section widths (SW), section heights (aspect ratio) and tread depths for specific tires. They also provide data on new tire dimensions and allowable grown tire dimensions. Both organizations are made up of representatives from various tire manufacturers working for a common cause. Not all manufacturers are members and may have different specifications for tires than these organizations dictate. BKT is a member of both organizations and designs and builds tires according to the specifications laid out for the industry.

AG Tire Talk

Bias ply and radial tires differ in body construction. Both are used on tractors depending on the application and what the tractor is used for. They can be interchangeable, but they react differently to ride, traction and handling. Where a radial tire can be run at lower air pressures, a bias ply tire cannot without possibly damaging the casing of the tire. Air pressures can dictate the growth of the tire and change rolling circumferences.

Both are used on MFWD (Mechanical Front Wheel Drive) tractors where the rolling circumferences are critical. When looking at the size of a bias ply tire (ex. 18.4-38), it tells you the tire should have a section width of 18.4 inches (measurement of sidewall to sidewall when inflated) and is mounted on a 38-inch wheel. The size doesn’t tell anything about the height of the tire. Because the process of building a bias tire often differs

The research and development team at Ascenso Tires North America typically designs tire specifications to fall into the center of an allowable tolerance so tires fit and function properly on a given piece of equipment, says Ascenso’s Nick Phillippi.
Photo: Ascenso Tires North America

between companies, there are oftentimes differences in heights. Because of the construction, a bias tire will grow more than a radial when aired up.

When looking at the size of a radial (ex. 480/80R38), it tells you the tire should have a section width of 480 millimeters (18.897 inches), the sidewall is 80% of the width (aspect ratio), and it’s mounted on a 38-inch wheel. This tire should be approximately 68.2 inches in height. In a perfect world, all radial tires this size should be approximately the same height and width. If they have the same height and width, they should have close to the same rolling circumference. Unfortunately, this is not always true. Once the tire is aired up, it will grow some as the fabric in the tire will stretch. TRA regulations allow for a growth in the overall tire width of 8% and the maximum overall diameter (height) of 4%. This excludes radial high flotation tires.

It is always wise to check the specifications of the tires replaced to make sure they are within the same size ranges, as sizes between manufacturers can be different. Where the difference can be noticeable is on MFWD tractors. The MFWD is a fourwheel drive tractor with different sized tires on the front and rear. The transmission

AG Tire Talk

‘It is always wise to check the specifications of the tires replaced to make sure they are within the same size ranges, as sizes between manufacturers can be different. Where the difference can be noticeable is on MFWD tractors.’
— Dave Paulk, manager, field technical services, BKT USA Inc.

must be geared to allow for the differences between tires. The rolling circumference is extremely important to maintain the correct lead/lag ratio between the front and the back. (The rolling circumference of a tire is the distance in inches it travels in one revolution.) While a 2-3% lead is

optimum, 1-5% is in the allowable range. Air pressures can change the rolling circumference and flat plate measurements but should still be in the range of the allowable.

GREG GILLAND, vice president, global agriculture, Maxam Tire North America Inc.: The Tire & Rim Association of America, established in 1903, became the governing body that drove the standardization of tires, tubes, valves, flaps and corresponding wheels to help both manufacturers as well as consumers solve the problem of sourcing products. The European Tyre and Rim Technical Organization (ETRTO) came into existence in the early 1960s to standardize pneumatic tires and rims across the European Union. Today the TRA, as well as the ETRTO and other regional associations, are responsible for standardizing and interchanging tires, rims, valves and all associated components, from passenger vehicles to bicycle tires, and to include agricultural tires. These organizations provide huge advantages as they eliminate ambiguous interpretations of nominal sizes between tire manufacturers, vehicle makers, and/ or by country providing standardization across all platforms.

Tire slip due to different brand tire and contact patch

Excessive tire wear caused by overall diameter

Tire diameter or width differences

Source: Maxam Tire North America Inc.

Different brand tires on the same axle can create increased tire slip due to diameter or tread width differences when inflated and under load.

Tire wear for more than 10% difference in tread depth or overall diameter (OD) on the same axle can result in a loss of traction, increased slip, increased fuel consumption or can impact gear ratios.

Tires that have more than a 5% difference in overall diameter that are operating side by side or on the same axle can lead to a loss of traction, increased slip, gear ratio issues and increased soil compaction as the load will shift to the larger diameter tire.

Maintain the same brand and size tires on the same axle, or side-by-side to maximize the best possible traction and tire footprint, ensuring improved tire slip.

Tires that have uneven wear or a large difference in overall diameter (OD) will lose traction or have increased fuel consumption, impacting the gear ratio of a front wheel assist tractor. We suggest replacing the tires on the axle of the same brand and OD.

Tire diameters need to be as closely matched as possible to prevent excessive tire slip and to limit any gear ratio issues. Larger OD tires used sideby-side can shift the axle load to the larger OD tire, increasing both soil compaction and limiting tire footprint. We suggest replacing tires on an axle at the same time with the same brand tires to limit this occurrence.

From a standard perspective, as an ag tire manufacturer, each size that we develop either as a bias ply or as a radial product must conform and be within the following tolerance for any given tire size in millimeters or inches:

• Tire Overall Diameter (O.D.) = + / – 2% versus the industry size standard

• Tire Section Width (S.W.) = + / – 4% versus the industry size standard

In all instances, the type of machinery, soil conditions, application (intensity of use), and air pressure maintenance will have a direct impact on its performance even after improvements. Listed in the chart on the bottom of the previous page are some general considerations related to using tires from different manufacturers on the same machine or axle based on application differences.

sizes when a direct replacement doesn’t exist. Now, this does not mean that any two tires of the same size will match up. In fact, within these standards, there is a measurement threshold that a tire of a certain size needs to fit within.

For example, a 480/80R50 should fall between 2,008 mm with a maximum of 2,068 mm. But the TRA standard is

slightly different, in that the minimum threshold for the same tire should be 2,014 mm. Either way, matching up two different tire brands can be a pretty big problem if you were to match up one brand of tire with a 2,068 mm overall diameter with another at 2,014 mm overall diameter (about a 2 inch difference). Best case, depending on the machine and

‘If you are one of those people looking to match up a tire and you are considering different brands, there are some specs that you ... should carefully consider.’
— David Graden, operational market manager, agriculture, Michelin North America Inc.

DAVID GRADEN , operational market manager, agriculture, Michelin North America Inc.: The European Tire and Rim Technical Organization was founded 1964, but was formerly known as the ETWTC (European Tyre and Wheel Technical Conference), founded in 1956. The TRA (Tire and Rim Association Inc. for the USA), was founded in 1903, originally to standardize passenger car tires.

Both organizations set guidelines to standardize and harmonize wheels and their corresponding pneumatic tires across all typical types of vehicles, from bicycles to mining equipment. This standardization improves the consumer’s ability to purchase proper tires for our vehicles and, in some cases, match up

REMA TIP TOP Group of Companies

position of the tire, you could see rapid wear on one of the tires or, worst case, you could damage your transmission.

Given this information, for whatever reason, if you are one of those people looking to match up a tire and you are considering different brands, there are some specs that you and your tire professional should carefully consider. First, once you have found a matching tire size, make sure the rolling circumferences match between the two brands. This will be the measurement around the outside of the tread, circumferentially, around the tire. Second, make sure the tread depths are similar in comparison. This will also have an effect on the rolling circumference and loaded radius. Third, make sure the loaded radius of each tire is comparable. This is the measurement between the center of the hub and a hard surface. It takes into account the tire sidewall bulge at the bottom, under load, and will also have an effect on the revolutions per mile. If these three specs are comparable between brands, you are probably safe to

match them up. However, buyer beware, the tread rubber of each tire could possibly wear faster or slower than the tire it is matched up to. In this case, whereas you were safe to match up from the start, over time these tires may no longer be a good match and you could have major problems down the road.

From a Michelin perspective, I highly recommend dualling up the same brand and tread name of tire (ex: Michelin Agribib 2 matched to a Michelin Agribib 2 and not a Michelin Yieldbib). I would also go so far as to say these should be the same across the axle if it is a drive/ powered axle.

CHRIS NEIDERT, ag marketing, training and development manager for Trelleborg and Mitas Tires — North America, Yokohama TWS: Let’s start with the section width. According to the ETRTO, a suggested maximum variance is 3% from the nominal measurement. An example would be the tire size of 480/80R50 — where the 480 is the nominal measure-

ment in millimeters of the section width or the overall width of the tire. In inches, this is 18.9. This is measured from the widest part which includes the sidewall and even raised lettering, if applicable. If we follow the ETRTO suggestion and go within 3%, the tire section width could vary from 494 mm (19.4 inches) to 465 mm (18.3 inches).

Let’s talk about tire diameter. This is where it gets critical! Let’s stay with our size example of 480/80R50. According to the ETRTO, the nominal diameter of that size is 80.2 inches. If we apply the plus- or minus-3% rule, the minimum diameter is 77.8 inches and the maximum is 82.6 inches. If you are considering replacing tires on a MFWD (Mechanical Front Wheel Drive) tractor, you could follow the minimum and maximum measurements. However, at Trelleborg and Mitas, we suggest to stay within 1% of the diameter measurement of the tire we are replacing. This is extremely critical as tire replacement could affect the lead/lag of the MFWD tractor. ■

SUPERIOR PERFORMANCE SUPERIOR PERFORMANCE ON EVERY TERRAIN ON EVERY TERRAIN

The market is

always right and the customer is always serious

HERE’S WHY BOTH STATEMENTS ARE TRUE

You’ve heard the saying, “The customer is always right.” I’m here to say that the market is always right. The market requires two people to agree on something for money. The businessperson has all the right in the world to decide if the exchange isn’t worth the money — and so does the customer. That’s the market. It’s always right.

I’m going to propose a debate on the topic, in which I favor one side. Keep in mind, I’m not bold enough to even come close to determining the driving force behind people’s belief systems. What I do know is that the customer is always serious. This is something every dealership owner needs to recognize.

I’ve interacted with customers my entire career as a salesperson, a manager, a small business owner — you name it. And I still interact with customers. Yes, I see the crazies. But I always believe the customer is serious about what they are saying. And if the feeling is mutual, you and the customer will both walk away having made the best decision for each.

If you don’t believe your customers are serious, ask them relevant questions in a polite way, as a professional does: “What do you mean? Tell me your concerns.” When you’re asking that question, regardless of topic, you’re asking for more information to solve their problem.

If you’re trying to solve multiple problems, you need to break them down, one by one, and ultimately find agreement. If you judge a customer’s seriousness, you’re very likely to offend them, which can agitate their emotional state.

Get to the seriousness of the problem and all the things that go with it the way the customer explained them. If something doesn’t make sense, ask how the customer connected those things. Probe until you find a solution that makes sense. (It’s just like running a diagnostic.)

What about price objections? Well, what about them? Until you clear up all possible reasons a customer is bringing up the subject of price, the customer is telling you that price is a priority. Ask,“Is price a concern for you?” If the customer says, “Of course, it is,” you have their serious answer, right now. Think of another question or agree to terms. If you can’t think of a question the customer is willing to talk about, you haven’t been listening. Always let them answer seriously.

The beauty of the open market is both parties are allowed to make equal decisions and hold equal power. It’s fair. If someone values price over all the other things you offer, you’re a commodity to them. If you don’t stand out as being worth the price, you have to fix that perception or move on to the next customer. Don’t waste the customer’s time and don’t waste yours. That doesn’t mean you should prioritize speed over accuracy. Speed over accuracy leads to mistakes and mistakes take the longest to fix. Monitor the customer’s reaction. When people get impatient,

Until you clear up all possible reasons for what a customer means when they bring up the subject of price, they are telling you that price is a priority.

they are valuing their time over what you offer. When people go silent, they are either thinking it over or have retreated to silence as a defense mechanism. If they are avoiding a decision, they are usually valuing relationships over time. If they tell you “yes” or “no,” they have evaluated everything and have decided. Try to reverse that with new information or don’t. But always take them seriously.

The market has proven its resilience in pricing where both parties — the business and the customer — are happy. We’ve raised prices in the face of extraordinary storms and have persisted. The market for skilled technicians remains tight and even sales and management roles are getting harder to fill. This is good news for your pricing. Your challenge is making sure a good thing doesn’t become a problem, so make sure you hire the best or teach them the best practices.

In this market, you need to stand out better than the others to capture market share at the prices you enjoy. Making decisions in this market is about the prioritization of needs.

Good luck next year. I think you’ll find favorable enough conditions in the market to ensure your continued success. Outside of things you can’t control, it should be a solid year or better. All market indicators are set for at least that. ■

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

Mergers and Acquisitions

Types of debt used to finance private M&A

THE FEATURES, BENEFITS AND POTENTIAL RISKS

With interest rates declining, it’s a good time to revisit the topic of debt used in mergers and acquisitions.

In M&A, financing is a key component that can make or break a deal. While most acquisitions involve an infusion of equity, obtaining debt financing is critical, especially in private deals where new owners seek to gain more control and take advantage of tax shields.

Here are the major types of debt used to finance private M&A deals, along with their features, advantages and drawbacks.

Senior secured loans are a common form of debt used in M&A. These loans are typically secured by the assets of the company being acquired or in some cases, the assets of both the acquiring and target companies. Because they are backed by collateral, senior secured loans carry the lowest risk for lenders and usually have lower interest rates compared to other forms of debt.

These loans often feature covenants that the borrower must adhere to during the life of the loan. They may include financial covenants, such as maintaining certain leverage ratios, or operational covenants that limit activities, like selling off assets.

As senior secured loans are backed by assets, they typically carry lower interest rates, making them less costly for borrowers. Also lenders are more willing to extend larger amounts of credit when collateral is offered as security. Lastly, interest payments on senior secured loans are tax-deductible, which can create a tax shield that reduces the overall cost of borrowing.

But if the business struggles or fails to meet its debt obligations, the lender can seize the assets pledged as collateral, thus dooming the entity. Often the covenants in senior loans can be restrictive, limiting the company’s operational flexibility and strategic decision-making. And in all cases, excessively high leverage puts pressure on cash flow, increasing the risk of default.

Mezzanine financing is a hybrid of debt and equity. It is typically subordinated debt, paid after senior debt in the event of bankruptcy, but before equity holders. Because mezzanine debt is riskier for lenders, it carries a higher interest rate and often includes an option for the lender to convert some debt into equity in case of default or a positive liquidity event.

In many M&A deals, mezzanine financing is used to fill the gap between senior secured loans and the buyer’s equity contribution. It is often structured as interest-only debt, with a balloon payment due at the end of the loan term.

Unlike senior secured loans, mezzanine debt does not require collateral, making it more flexible for companies that may not have sufficient assets to pledge. Mezzanine financing also offers flexibility in structuring payment terms, which can be customized to suit the needs of the buyer and the acquisition. While it often carries an equity component in the form of

warrants, mezzanine financing dilutes ownership less than issuing new equity, allowing the acquirer to maintain more control.

Some of the downsides are that the higher risk for lenders means higher interest rates, making mezzanine debt more expensive than senior debt. Since mezzanine debt is subordinated, it carries a higher risk in case of bankruptcy, so lenders may demand stringent conditions or oversight to mitigate these risks. Lastly, balloon payments at the end of the loan term can create significant cash flow pressure if the acquisition goes sideways and the debt can’t be refinanced.

‘While most acquisitions involve an infusion of equity, obtaining debt financing is critical.’

Seller financing occurs when the seller agrees to finance a portion of the purchase price. This debt is typically subordinate to all other forms of financing and often comes with flexible repayment terms negotiated directly between the buyer and seller.

We see seller financing in smaller, private M&A deals where the seller may need to facilitate the transaction by offering favorable financing terms.

Since the buyer and seller negotiate terms, seller financing often comes with more favorable interest rates and repayment schedules. Seller financing can help the buyer close the deal faster and reduce the need for external financing — potentially lowering the overall transaction cost.

Seller financing is often unsecured, meaning the seller bears the risk if the buyer defaults on the loan. Also the seller remains financially tied to the business after the sale, which is not desirable if the seller was looking for a clean break. And there’s nothing but headaches if the buyer can’t meet payments.

In sum, senior secured loans offer lower costs, but come with collateral and covenant restrictions. Mezzanine financing provides flexibility, but at a higher price and you need to choose your partner well. Seller financing can be a useful tool for smaller deals, but carries its own set of challenges. For example, be prepared to get nothing from seller financing if your buyer hits a rough patch. ■

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

Dealer Development

T‘You reward what you appreciate and deserve what you tolerate’ OPEN UP THE LINES OF COMMUNICATION FOR A SUCCESSFUL 2025

his time of year, we are all reminded to take stock and reflect on the year now nearly behind us. Generally speaking, a year in reflection involves reminiscing about the highs and lows.

Those interested in career development also take time to reflect, both personally and professionally. It’s an important practice that helps us improve our skills, make better decisions and grow in our careers.

A long time ago, I had a boss. Let’s call him Doug, He was heavily interested and invested in my success. He never said those words, per se, but he didn’t have to. His interest in my success was apparent — not just because my success was the business’s success, but it also was part of his success.

He was a true leader and one day, he said, “Randy, if you ever wonder why some things aren’t quite right or are happening around you that you don’t like or appreciate, you need to remember that we reward what we appreciate and deserve what we tolerate.”

That took a while to sink in, but since then it has long been one of my favorite phrases; I’m passing it along to you.

Doug was so passionate about success, there was rarely a week that passed by that I wasn’t getting coached. In my early days running a single-location dealership, his preferred method was to show up at the shop, usually unannounced, and take me for a ride and a meal.

As I branched out to overseeing multiple locations, the in-person lunch dates were replaced by 6 a.m. phone calls. Doug knew my schedule and knew when I would likely be on the road, traveling to a store. He was not only making sure my tail was in gear, but that I learned to make the most of my windshield time to, from and between locations.

He also would make sure whatever message it was he wanted to convey was said three times. It used to bug the heck out of me, but it was intentional, and today I appreciate that intentionality.

Valuable lessons emerged from his feedback. I recognize that not everyone gets to look back, reflect upon and appreciate guys like Doug. He’s a big part of the reason I was able to find success in our industry. (Thank you, Doug!)

As a business leader and as an employee, it’s imperative to have those conversations together. Ideally, I recommend, at minimum, “a year in review,” where these conversations intentionally trickle through the org chart so that each and every team member has a conversation relative to their performance and how the learnings apply to the year ahead.

If this type of culture doesn’t exist at your dealership, there’s nobody stopping you, as an employee, from requesting this type of conversation with your leader. Ask your boss out to lunch. See what happens.

If your boss is any type of leader, he or she will not only make time for the conversation, but will greatly appreciate and likely reward your initiative. If that type of conversation can’t or won’t be had, you can try and find a fellow colleague who might be interested in opening up to help you reflect. Bare minimum, this will help your relationships on the job, while giving you some insights from a colleague that can help you reflect and grow.

The fact is, by and large, our industry does a terrible job with feedback and reviews. And “terrible” is putting it lightly. None of us are stuck with that. You can change it. You don’t need to wait for someone else to build the system. Take charge and build your own — if not for your team, then at least for yourself.

Structured and timely feedback sessions should be an absolute must, but they don’t need to be as structured as you think. Doug’s model of regular and unscheduled feedback sessions, both on the road and as he ate some of my French fries during our lunches, remains extremely effective.

At the end of the day — or in this case, the end of the year — those who appreciate the purpose and value of timely and intentional feedback get the reward. Those who don’t shouldn’t be upset while they’re tolerating what they deserve. So again, you reward what you appreciate and deserve what you tolerate. What will you do to open up the lines of communication at your dealership in the new year? ■

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

Structured and timely feedback sessions should be an absolute must, but they don’t need to be as structured as you think.
Photo: Ben Borchert

EV Intelligence

Mechanics, technicians or engineers?

WHERE WILL YOUR NEXT WAVE OF EV TECHS COME FROM?

There might a baby born in your town today who will only work on battery electric powertrains. They will never know what they missed, having never worked on an internal combustion engine. Will they miss the fumes, gasoline dripping onto their skin, exhaust system burns and hot oil splashing into a drip pan and missing the target? What about the carbon plugging up EGR ports or the slipping clutches? Who knows?

However, I do know this. A master-level, electric vehicle (EV) technician will be the most employable one in our field. Let me digress for a moment, What is the proper name for someone today who works on motor vehicles? When I started getting paid to repair cars at a gas station after high school, I was called a mechanic’s helper. Later on, after I bought lots of tools, I was a mechanic, like my father and grandfather during their working years. (My father, Raymond, later owned a used car lot.)

In the 1970s, after I took and passed the National Institute for Automotive Service Excellence — or “ASE,” for short — exam, the uniform patch said “mechanic.” Later on, the word was “technician.” That was about the same time I started my own repair shop. We are talking almost 50 years ago. While the majority of mechanics today are staying away from high-voltage systems, there is an increasing number that are making the effort to stay up-to-date on all that is going on. A few years back, I attended a conference for automotive instructors and the speaker held my attention when addressing what we name ourselves. Three titles are now in play for those who work in service bays:

• Mechanic, which I define as one who knows the art of metal, bolts and how things go together. They often do heavy and dirty work.

• Technician, which is someone who has been trained in the use of scan tools, electrical systems and can fix most anything if codes are present and the OEM diagnostic procedure leads you to the correct issue and/or a defective part.

• An engineer has the skill to fix vehicles that no one else can, by mastering electrical systems. He or she knows the theory of operation and has all the necessary information, tools and equipment. No-code issues and weird problems are the challenges they willingly take on. They will refuse to work on a vehicle that is too far gone and are quite fussy about doing things correctly.

There has been a shortage of “skilled” technicians for as long as I can remember. Mechanics and technicians can still be poached if the money is right or the job has more of what they are lacking at their present employer. Engineers are often the “mobile diag-

nostic techs” who will visit your shop for a fee or own their own small shop. Many of them specialize.

Where will EV technicians come from? Using the definitions stated, there will not be very many EV mechanics. If there are, it will be under the supervision of a master EV tech in a very large shop.

If you are fortunate to work with the current generation of 18- to 30-year-olds — typically referred to as Gen Z — as I am, you may have noticed they want to make a contribution to humanity. By that, I mean they are trying to make a good living while solving a social problem.

They are “social entrepreneurs,” who create an environment at work that is responsive to solving social and environmental problems. At the core of social entrepreneurship is the belief that all of us, including big businesses, have a moral obligation to make the world a better place.

‘Gen Z techs — some now just finishing high school — will find the EV world a good place to work, make a difference and pay the bills.’

These companies — of which my business, Automotive Career Development Center (ACDC), is one — hire people who believe that change is possible and know it isn’t easy.

As the planet continues to overheat, transportation technicians involved with all modes of wheeled movement will split into three groups: EV haters, EV lovers and those who “just need a job.”

I have seen this split happening since I taught my first hybrid class at ACDC in early-2000.

Gen Z techs — some now just finishing high school — will find the EV world a good place to work, make a difference and pay the bills. If you fall into the “EV lovers” category, make sure you contact your local automotive tech schools and schedule a time to visit with their students. They may be looking to you for a job someday. ■

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

Focus on Dealers

Discount Tire takes a ‘quantum leap’ with tire data

RETAILER IS TESTING

95% OF THE TIRES IT SELLS AT TREADWELL RESEARCH PARK

Discount Tire is augmenting the power of its online Treadwell tire selection tool with data generated at Treadwell Research Park, the company’s tire testing facility in Pearsall, Texas. e nearly 900-acre complex, which Discount Tire acquired several years ago, features 14 on- and o -road test surfaces, as well as indoor tire testing.

Nearly 95% of the tires that Discount Tire sells, including the Scottsdale, Ariz.based dealership’s private label products, are evaluated at Treadwell Research Park.

Treadwell Research Park is “a quantum leap for us,” John Baldwin, Discount Tire’s chief product and technical o cer, told MTD during a recent media event, Treadwell Experience ‘24, which was held at the facility.

“We started thinking about” establishing Discount Tire’s own tire test center in 2014. “When this became available, it checked all the boxes.” (Discount Tire acquired the facility, owned for many years by Cooper Tire & Rubber Co., from Goodyear Tire & Rubber Co., which purchased Cooper in 2021.)

“If (tires) are on o er” via the Treadwell portal “that we consider to be a core part of our assortment or maybe something we don’t carry in our stores, but we o er on our website ... those are tested,” he said.

“Say it’s a power line of 50 sizes. We might pick three di erent sizes and put them on di erent vehicles. We collate test data, we make sure it’s matching up — we run control tires, too — and we enter all of that into a database,” as well as tire mileage information collected at more than 1,200 Discount Tire stores.

“As a company, we’re not selling tires,” Discount Tire CEO Dean Muglia told event attendees. “We’re empowering the customer with the right data and information, so they can make the best choices. It’s tire buying made easy.”

Captured data, once processed, is presented to consumers across a variety of metrics when they drill down into Treadwell. “You don’t have to be a tire expert to decipher the information,” Baldwin told MTD.

“As a company, we’re not selling tires,” Discount Tire CEO Dean Muglia told event attendees. “We’re empowering the customer with the right data and information, so they can make the best choices. It’s tire buying made easy.”

‘AN INDEPENDENT VOICE’

Speaking as part of a panel discussion during Treadwell Experience ‘24, David Ginsberg, Discount Tire’s chief corporate and strategy o cer, called Treadwell “an independent voice that really cuts through the marketing stories and gives (consumers) the real facts, so they can say, ‘I get it. I now understand what I’m paying for.’”

Tire pricing is not factored into how Treadwell rates tires, he added. “People are shocked to hear that nancial considerations are not included in the algorithm.”

Tom Williams, Discount Tire’s chief experience o cer, called Treadwell “a big game-changer. It’s really been able to (help) us build trust with the customer based on facts and data. e tire buying experience is not fun. A lot of consumers out there don’t enjoy the experience. ey want to be empowered. ey want to have the peace of mind that what they bought is the right

thing. We’re not selling tires. We’re consulting. We’re sharing information. And when we do that, (consumers) tell us we’re building trust.”

The data generated at Treadwell Research Park also bene ts Discount Tire store personnel, Baldwin told MTD. “If you think about the number of tires that are now on o er and say, ‘Hey, I’m going to make a top three recommendation,’ you might have 25 di erent SKUs” to choose from. “Keeping all of that in your head is just not possible. Treadwell helps the counterperson learn about tires quickly and secondly, it’s a seamless and consistent way to organize tires and rank them.”

“The other thing Treadwell does is help manufacturers make better and safer tires,” said Muglia, noting that Discount Tire’s testing and tread wear information is shared with tiremakers. “ ey want to rank high in Treadwell, so they’re constantly trying to up their game.”

NEW CAPABILITIES

Discount Tire o cials say the dealership is always looking to incorporate new products and categories into its Treadwell tool.

“Next year, we’re looking at adding o -road (light truck tire) data,” possibly including information about tires’ “ability to rock climb... maybe sidewall toughness or durability,” said Baldwin. “ at’s on our radar. We just launched winter (tire) Treadwell. We’re getting started with that.” ■

Focus on Dealers

Tips from a World Class Technician

JOHN BEMIS MOST RECENTLY WAS NAMED

AAPEX TECHNICIAN OF THE YEAR

John Bemis, lead technician at VIP Tires & Service’s store in Bangor, Maine, earlier this year was recognized as a World Class Technician by the National Institute of Automotive Service Excellence (ASE). And in November, he was named the AAPEX Technician of the Year.

The World Class Technician recognition started around 35 years ago and has been given to almost 2,000 technicians. Fewer than 50 technicians receive the honor annually.

Bemis, the seventh VIP Tires employee to achieve World Class status, shares insights on best practices for tire technicians, emphasizing the importance of learning from experienced colleagues, effective communication and handling mistakes constructively.

With nearly 12 years in the industry, Bemis provides these tips:

1. Pay attention to the experienced technicians around you.

“The best practices are paying attention and learning — and learning comes from watching the guys that have been doing this for over 15 years,” says Bemis.

“I did a two-year program for (technician training) and I got a degree in automotive, but I learned more in the first year in the field than I did in those two years at school.

“If you’re in a tire shop that does mechanical work like we are and you’re a tire guy that’s doing tires and (tire)

changes, if you have downtime, pay attention to what the guys who have been here for forever are doing. That’s how you’re going to learn.”

Older technicians should take it upon themselves to talk with younger technicians and teach them, too, says Bemis, who always tries to pull over younger technicians to watch him work on a certain problem.

This brings Bemis to his second best practice: good communication.

2. Communicate effectively with everyone within your store.

“Whether it’s between the technician and the counter person, the technician and the customer or a technician with another technician, without a good level of communication, it makes everyone’s jobs harder,” says Bemis.

Effective communication limits mistakes and confusion and helps operations run more smoothly, he adds.

Communication between technincians is particularly important.

Bemis says technicians discussing with one another what they worked on during the day and how they solved certain problems can provide a great learning opportunity for others who will encoun-

ter similar problems later. “I want them to encounter a problem and remember talking about it or watching a technician work on it 10 years ago at a VIP Tires (store) and using what they learned here to solve the problem,” he explains.

3. You’re going to make mistakes. Get over it.

The final best practice Bemis shares is how to handle mistakes. “This is going to sound very blunt, but when you make a mistake, the best thing to do is to get over it,” he says.

“When you’re new, you’re going to make mistakes. It’s the nature of the job to learn as you go. Move past the mistake and realize you are human. Now you know what not to do.

“We’ve all done it. I’ve had a wrench slip and break something unrelated to the job I’m doing and I’m like, ‘OK, looks like we are fixing that for free.’ It is what it is.

“If people read this and are new to the industry, my advice is to just keep plugging away.

“You’re going to make mistakes (and) you’re going to have hard issues and hard diagnoses,” he says. “If this is what you want to do, it’s not going to be easy, but it’s going to be worth it." ■

John Bemis is the lead technician at VIP Tires & Service’s Bangor, Maine, location. This year he was named a World Class Technician by the National Institute of Automotive Service Excellence, and also the AAPEX Technician of the Year.
Photo: VIP Tires & Service
Madison Gehring

GMC Sierra ■ 2023

DESCRIPTION & OPERATION

The tire pressure monitoring system (TPMS) warns the driver when a significant loss of tire pressure occurs in any of the equipped tires. The Tire Fill Alert (TFA) feature, if equipped, provides visual and audible alerts to drivers to assist in inflating an underinflated tire to the recommended tire pressure without the need to check a gauge or the instrument panel. TFA only functions once the tire pressure is low enough to trigger the telltale on the dashboard.

If a new sensor has been installed or tire rotated, the vehicle must be stationary for about 20 minutes before the system can start the process of calculating correct sensor locations. For this to happen, the vehicle will need to be driven at a speed greater than 12 mph for about 10 minutes. Once vehicle speed is greater than 25 mph, the sensors begin to transmit once

a minute keeping the pressure data up to date. Each sensor has its own unique identification code which it transmits as part of each RF message and must be learned into the BCM memory. Once all four IDs have been learned and vehicle speed is greater than 25 mph, the BCM continuously compares IDs and pressure data in the received transmissions to the learned IDs and pressures to determine if all four sensors are present and if one or more tires is low.

If the BCM detects a low tire pressure condition, or a malfunction in the system, it will send a serial data message to the instrument cluster requesting the appropriate tire pressure monitor indicator illumination and also to display the appropriate data message on the driver information center, if equipped. The sensors continuously compare their last pressure sample

to their current pressure sample and will transmit in Alert mode if a 1.2 psi change in tire pressure has been detected in either a stationary or rolling state. When the tire pressure system detects a significant loss or gain of tire pressure, the tire pressure monitor indicator icon is continuously illuminated on the instrument cluster and if equipped, a check tire pressure type message is displayed on the

TPMS

driver information center. Both the indicator icon and driver information center message can be cleared by adjusting the tire pressures to the recommended psi. If power is disconnected from the BCM or if the vehicle battery is disconnected each tire pressure sensor ID is retained but all of the tire pressure information is lost. Under these circumstances the BCM cannot assume that the tire pressures were maintained over an unknown period. To reactivate the sensors, the vehicle must be driven above 25 mph for at least two minutes. When the sensors are activated, the driver information center displays the current tire pressures. The EL-52545 tire pressure monitor sensor and RF diagnostic tool may also be used to activate the sensors as well.

TIRE PRESSURE SENSOR LEARN

Make sure the TPMS tool’s battery is sufficient to complete the TPMS learn process. Do not place the tool directly on the valve stem. The tool should be placed against the tire sidewall near the valve stem. The sensor learn activation procedure may have to be repeated up to three times before determining a sensor is malfunctioning.

Tire Pressure Sensor Learn with EL-52545 (Preferred)

The EL-52545 allows the tire pressure sensors to be learned without transmitting RF data between the tire pressure sensors and the vehicle. When using the EL-52545 each tire pressure sensor ID is learned to the EL-52545 and stored internally. The EL-52545 is then connected to the vehicle DLC using the OBD2 Interface Module, which is part of the EL-52545 kit. The stored tire pressure sensor information will then be loaded into the K9 Body Control Module. Using the EL-52545 to learn tire pressure sensors will prevent the vehicle from learning errant nearby tire pressure sensors from other vehicles, especially if the tire pressure sensor batteries are low. This is the GM recommended method.

1. Turn on EL-52545.

2. Select RDR from the on-screen display. 3. If available, scan the QR code on the vehicle’s tire placard or certification label. If QR is not available, select MMY from the on-screen display and manually input the vehicle information.

4. Approach the vehicle starting with the left front tire and read each tire

pressure sensor information by pressing the green trigger button with the EL-52545 located near the tire valve stem. Read each tire pressure sensor in the order identified on the EL-52545. If any sensors display “Sensor Not Compatible” on the EL-52545 screen, you will need to first make sure compatible sensors are installed on the vehicle.

5. If any tire pressure sensors do not respond, replace the sensor only after several attempts have been made to identify all sensors. An undetected sensor will be identified with “No Sensor Detected” displayed in the table. After sensor replacement rerun RDR procedure.

6. Verify the BAT value for each tire pressure sensor in the table on the EL-52545 is OK. If not OK, replace the sensor and rerun RDR procedure.

7. Verify the pressure and temperature values are reasonable based on the ambient conditions and actual tire pressure. If either value is inaccurate, replace the tire pressure sensor and rerun RDR procedure.

8. Ignition On/Vehicle in Service Mode.

9. Connect the EL-52545 OBD2 Interface Module to the EL-52545 .

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

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

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

Tire Pressure Sensor Learn with EL-50448 (Alternative)

When EL-50448 Tire Pressure Monitor

Sensor Activation Tool is used in activate mode, it produces a low frequency trans-

mission that activates the sensor. The sensor responds to a low frequency activation by transmitting in Learn Mode-Remotely Triggered. When the BCM receives a learn mode transmission while in Learn mode, it will assign that sensor’s ID to the location on the vehicle relative to the order in which it was learned.

In the event a particular sensor is activated and the horn does not chirp, it may be necessary to rotate the wheel so that the valve stem is in a different position due to the sensor signal being blocked by another component.

1. Ignition On/Vehicle in Service Mode. Using driver information center buttons or scan tool (if available), initiate the Tire Pressure Sensors Learn mode. A double horn chirp will sound indicating the Learn mode has been enabled. The left front turn signal will also be illuminated.

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

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

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

SENSOR REMOVAL AND INSTALLATION Removal Procedure

1. Raise and support the vehicle.

2. Remove the tire and wheel assembly.

3. Demount the tire from the wheel.

4. If a tire sealant product was used or found within the tire/wheel, use a mild dish soap, clean water and shop cloths to remove the sealant residue from the tire and wheel surfaces.

5. Referring to Fig. 1, use a suitable tool (4) inserted into the hole of the tire valve front and rear stem (3) to prevent it from rotating.

6. Remove and discard the tire pressure indicator sensor bolt (1)

7. Remove the tire pressure indicator sensor (2) by pulling it straight off of the tire valve front and rear stem. Do not scratch or damage the clear coating on aluminum wheels with the tire changing equipment. Scratching the clear coating could cause the aluminum wheel to corrode and the clear coating to peel from the wheel.

8. Remove and discard the tire valve front and rear stem by pulling it through the wheel.

Installation Procedure

Never install the tire pressure indicator sensor on unapproved wheels. Whenever the Tire Pressure Indicator Sensor is removed from the wheel, install a new tire valve front and rear stem and a new bolt. Do not reuse the old parts.

1. Before installation, verify the orientation of the tire valve front and rear stem for the correct position of the tire pressure indicator sensor.

2. Remove the new bolt from the new tire pressure indicator sensor and pull it straight off the new tire valve front and rear stem.

3. Apply lubricant to the new tire valve front and rear stem.

4. Using a tire valve stem installation tool, pull the tire valve front and rear stem through in a direction parallel to the valve hole on the wheel.

Ensure the flat of the valve lines up with the flats of the snap in the enclosure.

5. Assemble the tire pressure indicator sensor to the new tire valve front and rear stem.

6. Use a suitable tool inserted into the hole of the tire valve front and rear stem to prevent it from rotating.

7. Install and tighten the new tire pressure indicator sensor bolt.

8. Check that the tire valve front and

rear stem is concentric and completely seated in the valve stem hole of the wheel.

9. Make sure that there is a gap between the tire valve front and rear stem and the tire pressure indicator sensor.

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

10. Mount the tire to the wheel.

11. Inflate the tire to the specified pressure as stated on the tire placard.

12. Install the new dust cap.

13. Install the tire and wheel assembly.

14. Perform the tire pressure indicator sensor learn procedure.

15. Remove the support and lower the vehicle. ■

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

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