Modern Tire Dealer - January 2025

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WHOLESALE DISTRIBUTION UPDATE EXCLUSIVE Q&A STATE OF THE INDUSTRY SEVEN PREDICTIONS FOR 2025

FULL CIRCLE MTD’S FACTS ISSUE CHARTS NEW BASELINE FOR THE TIRE MARKET

January 2025 | Vol. 106, No. 1 | $30 | www.moderntiredealer.com

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The Industry’s Leading Publication January 2025, Volume 106, Number 1

52 From the influence of private equity to trends in manufacturing and mergers and acquisitions, analyst John Healy breaks down the state of the industry.

Photo: MTD

DEPARTMENTS 6 Editorial

MTD’S 59TH FACTS ISSUE

8 moderntiredealer.com

22 World sales leaders, sales margins and domestic tire shipments

Seven predictions for 2025 Independent tire dealers will rule the roost (and other forecasts)

News and navigation tools for MTD’s website

10 Industry News

They said it!

Quotes that defined the tire industry in 2024

18 Numbers That Count Relevant statistics for an industry in constant motion

20 Your Marketplace

Tier-three tires remain in the lead Budget-friendly tires are tops for seventh straight month

78 Business Insight

Five simple rules for success How to start the new year in the right way

80 Dealer Development

How to outperform the status quo It first takes a vision that inspires, motivates and guides

82 EV Intelligence

Why the Berlin Wall matters to a tire store Government, shops and schools all play a role in making changes

84 Focus on Dealers

Bookout Tire celebrates 50 years Repeat customers keep small town dealership going

24 Imports 26 Channel market share 29 Replacement PLT brand market share 30 OE tire market share 32 Dealer distribution 34 Brand distribution 36 Tire sizes 38 Tire pricing 40 Commercial tire market 42 Plant capacities 44 Automotive service 46 Mergers and acquisitions 48 Biggest dealers 50 Private equity

86 Focus on Dealers

Secrets of service advisor success Bass shares what he’s learned across four decades

88 TPMS 2021 Chevy Silverado 1500

92 Ad Index

FE AT UR ES 52 State of the industry From tier trade-down to tariffs and everything in between, analyst John Healy examines forces that will continue to shape the U.S. tire market

64 Wholesale snapshot On the cover: 1076905886 | arthead | Adobe Stock Modern Tire Dealer is a proud member of:

A look at tire distribution through the eyes of five players in the U.S. market

76 How to proactively sell ride control service Educating consumers in advance is key

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

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Editorial

Seven predictions for 2025 INDEPENDENT TIRE DEALERS WILL RULE THE ROOST (AND OTHER FORECASTS) By

Mike Manges

T

he recent death of famous “mentalist” and frequent “Tonight Show” guest (88 appearances!) The Amazing Kreskin has put me in a prognosticative frame of mind.

In other words, I’ve made some new year’s predictions, including a few about the great opportunities headed your way. In no particular order, here are seven forecasts for 2025. I’m confident they all will come true.

7. No new tariffs on tires. A massive topic of speculation last year was the potential magnitude of tariffs that would be imposed on tiremakers that export commercial medium truck tires made in Thailand to the United States. Several months ago, the U.S. Department of Commerce finally settled on a 12.33% tariff for most tiremakers that export TBR tires from Thailand.

One company, Bridgestone Americas Inc., will be forced to pay a rate of nearly 50%. These fees are quite a bit higher than the preliminary rates revealed this past summer. The government also announced that tariffs on TBR tires exported to the U.S. from China will remain in effect. Will the United Steelworkers push for more tariffs this year? No. I believe they’ll take their win — or in this case, several wins — step back and determine their next move. But that next move won’t happen in 2025.

6. More tiremakers will invest in domestic manufacturing. I don’t expect to see any repatriation of tire manufacturing to the United States, Canada or Mexico during 2025. However, I predict that more tiremakers will continue to invest in existing plants within these countries to expand capacity, modernize operations and provide insulation from the unpredictability of international shipping.

5. More brands will enter the market. Strolling around the 2024 SEMA Show, I was astounded at the sheer number of new tire brands — many in what some people call the “value tier”— that are now available to North American tire dealers. As many consumers continue to drift toward less-expensive tires — a trend that shows no sign of stopping — you will have more product options in 2025 than arguably ever before.

4. Smaller tire wholesalers will gain share. Another huge story in 2024 was the bankruptcy of American Tire Distributors Inc. (ATD), the second time the wholesaler filed Chapter 11 in the past six years. ATD recently announced it has entered a “stalking horse” agreement with a consortium of buyers. That’s good news for smaller tire wholesale distributors, who will continue to pick up new share and shelf space while the gigantic ATD fights to regain its footing. As a side prediction, I also believe that ATD will emerge from bankruptcy during 2025. But the company could look different if its new owners decide to shed locations.

3. Auto service opportunities will abound. According to a mid2024 report by S&P Global Mobility, the average age of cars and 6

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The Amazing Kreskin made many predictions during his time in the spotlight and I’ve now made a few, too. One thing is certain: independent dealers will continue to dominate tire sales in 2025. You can count on that.

Photo: MTD

light trucks in the United States has risen to 12.6 years — an all-time high. “More vehicles are entering the prime range for aftermarket service, typically from six to 14 years of age,” says Todd Campau, aftermarket practice lead at S&P Global Mobility. “With more than 110 million vehicles in that sweet spot — reflecting nearly 38% of the fleet on the road — we expect continued growth in the volume of vehicles in that age range to rise to an estimated 40% through 2028.” A lot of this business will be coming your way. Get ready for it.

2. More deals will be done. I didn’t see it coming at the start of last year, but there were more publicly announced tire dealership acquisitions during 2024 than what were announced in 2023.

Very likely, there were many more acquisitions that weren’t publicized. With the rate of inflation steadily declining — falling to 2.7% this past November, down from a 2024 peak of 3.5% in March — and inching closer to the Federal Reserve’s stated target of 2%, I predict we’ll see more acquisitions happen and not just big ones. Expect to see more consolidation at the single-store level as tire dealers who are aging out of the business seek to cash in their chips.

1. Independents will continue to dominate. At the retail level, nobody moved more units in 2024 than independent tire dealers, who together made up 67% of the consumer tire retail channel. (Independents enjoy an even larger share — 80% — of the consumer tire wholesale channel.) Simply said, nobody takes better care of customers than independent tire dealers.

All it takes is one outstanding interaction to win a new customer. Independent tire dealers, like you, know this better than anyone else. And they’re better at it than anyone else.

What are your predictions for 2025? We’d love to hear them! ■ If you have any questions or comments, please email me at mmanges@endeavorb2b.com.

MTD January 2025

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ModernTireDealer.com DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER

Stay tuned to MTD’s podcast!

The Modern Tire Dealer Show is available on Apple Podcasts, Spotify, iHeart Radio, Amazon Music, Audible and MTD’s website.

Sign up for Modern Tire Dealer’s eNewsletters to receive the latest tire news and our most popular articles. Go to www.moderntiredealer.com/subscribe.

3515 Massillon Rd., Suite 200 Uniontown, OH 44685 www.moderntiredealer.com PUBLISHER Greg Smith gsmith@endeavorb2b.com (330) 598-0375 EDITORIAL Editor: Mike Manges (330) 598-0368, mmanges@endeavorb2b.com Managing Editor: Joy Kopcha (330) 598-0338, jkopcha@endeavorb2b.com Associate Editor: Madison Gehring (330) 598-0308, mgehring@endeavorb2b.com PRODUCTION Art Director: Erin Brown Production Manager: Karen Runion, (330) 736-1291, krunion@endeavorb2b.com ACCOUNT EXECUTIVES Darrell Bruggink / dbruggink@endeavorb2b.com Marianne Dyal / mdyal@endeavorb2b.com Mattie Gorman-Greul / mgorman@endeavorb2b.com Cortni Jones / cjones@endeavorb2b.com Diane Braden / dbraden@endeavorb2b.com Sean Thornton / sthornton@endeavorb2b.com Kyle Shaw / kshaw@endeavorb2b.com Lisa Mend / lmend@endeavorb2b.com Chad Hjellming / chjellming@endeavorb2b.com Annette Planey / aplaney@endeavorb2b.com

Photo: Discount Tire

MTD READER ADVISORY BOARD Rick Benton, Black’s Tire Service Inc. Jessica Palanjian Rankin, Grand Prix Performance John McCarthy Jr., McCarthy Tire Service Co. Inc. Jamie Ward, Tire Discounters Inc.

A fresh start for the new year

CUSTOMER/SUBSCRIPTION SERVICE (877) 382-9187 moderntiredealer@omeda.com

Discount Tire operates more than 1,200 stores throughout the United States, including a new location that recently opened in Brookfield, Wis.

Whether it’s tiremakers or tire dealers, companies are making changes and investments to solidify their stakes in the industry. While three of the largest retail tire dealers in the country continue to expand their footprints, manufacturers are focusing on their manufacturing capabilities to serve the North American market.

1. Photos: Chabill’s celebrates Beth Barron as the 2024 Tire Dealer of the Year 2. Continental to spin off automotive unit 3. ATD enters into agreement with buyer 4. Sun Auto Tire surpasses 500 stores

ENDEAVOR BUSINESS MEDIA, LLC CEO: Chris Ferrell COO: Patrick Rains CRO: Paul Andrews CDO: Jacquie Niemiec CALO: Tracy Kane CMO: Amanda Landsaw EVP Transportation: Kylie Hirko VP Vehicle Repair: Chris Messer VRG Editorial Director: Chris Jones

5. Les Schwab makes another acquisition 6. Prinx Chengshan recalls M/T and R/T tires 7.

Tiremakers continued to invest in manufacturing in 2024

8. MTD exclusive: NTW continues ‘strategic investments’ 9. OTR tire market set to grow, says Smithers 10. Discount Tire expands in Wisconsin

DIGITAL EDITION Check out MTD’s digital edition at the top of our website’s homepage.

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SOCIAL MEDIA Like us Facebook: facebook.com/ModernTireDealer Follow us X: twitter.com/MTDMagazine

Modern Tire Dealer (USPS Permit 369170), (ISSN 0026-8496 print) is published monthly by Endeavor Business Media, LLC. 201 N Main St 5th Floor, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI, and additional mailing offices. POSTMASTER: Send address changes to Modern Tire Dealer, PO Box 3257, Northbrook, IL 60065-3257. SUBSCRIPTIONS: Publisher reserves the right to reject non-qualified subscriptions. Subscription prices: U.S. ($81.25 per year). All subscriptions are payable in U.S. funds. Send subscription inquiries to Modern Tire Dealer, PO Box 3257, Northbrook, IL 60065-3257. Customer service can be reached toll-free at 877-382-9187 or at moderntiredealer@omeda.com for magazine subscription assistance or questions.

Printed in the USA. Copyright 2025 Endeavor Business Media, LLC. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopies, recordings, or any information storage or retrieval system without permission from the publisher. Endeavor Business Media, LLC does not assume and hereby disclaims any liability to any person or company for any loss or damage caused by errors or omissions in the material herein, regardless of whether such errors result from negligence, accident, or any other cause whatsoever. The views and opinions in the articles herein are not to be taken as official expressions of the publishers, unless so stated. The publishers do not warrant either expressly or by implication, the factual accuracy of the articles herein, nor do they so warrant any views or opinions by the authors of said articles.

MTD January 2025

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Industry News

They said it!

QUOTES THAT DEFINED THE TIRE INDUSTRY IN 2024

T

ire dealers, manufacturers and others weren’t shy when it came to sharing their thoughts with MTD in 2024.

Here’s a month-by-month snapshot of the industry, in their words.

JANUARY

“Inventory is still higher than we would want it to be. Entering the slower time of the year, we anticipate prices going down in the early part of the year.”

— John Ziegler Jr., vice president of Massillon, Ohio-based Ziegler Tire & Supply Co.

FEBRUARY

“We believe that if the tariffs are passed, we are likely to see production shift to other low-cost, low-tariff countries.

While it sounds like an easy solution, we believe that shifting production capacity is no easy task.”

— John Healy, managing director and research analyst at Northcoast Research Holdings LLC and MTD columnist

MARCH

“The automotive industry is witnessing a persistent trend toward the adoption of larger rim diameters for wheels and tires by both consumers and OEMs. The shift is particularly notable in the performance tire segment.”

— Ian McKinney, senior product manager, Bridgestone Americas Inc.

APRIL

“I wouldn’t say I’ve seen prices drop, but I’ve seen them hold pretty steady.

For a while, they were jumping up every month.”

— John Wood, sales manager at Warren Tire Service Center Inc.’s location in Queensbury, N.Y.

MAY

“I see first-hand that independent dealers are in growth mode. M&A activity 10

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in 2023 was a net positive for ITDG, as members acquired more locations than we lost to outside acquisition.”

AUGUST

JUNE

— Keiko Brockel, president and CEO of Nitto Tire U.S.A.

— Jason Rook, CEO of the Independent Tire Dealers Group LLC

“I think demand is returning to preCOVID-19 levels. We’re not seeing the spikes, high or low, that we saw during the last four years.”

— Michael Graber, president and CEO of Toyo Tire U.S.A. Corp.

“Overall, it’s a flat market, but the good thing is that the high-value market — what we call the 18- and 19-inch and up market — is showing resilience and is growing.”

— Claudio Zanardo, CEO of Pirelli Tire North America Inc.

“The industry is still kind of recovering from the unevenness of the prior few years and is getting back to some semblance of normalcy.”

— Michael Mathis, president, Atturo Tire Corp.

JULY

“For passenger and light truck, I think everyone agrees that overall, it’s been a challenging market so far in 2024.

A number of inf luencing factors have caused headwinds on the demand side.”

— Chris Brackin, president of American Omni Trading Co.

“Some of the supply chain disruptions that everyone experienced prior to 2023 are returning this summer as the ocean carrier cartel continues to raise prices by limiting supply.”

— Jimmy Yang, chairman of Kenda Rubber Industrial Co. Ltd.

“The market has been soft. Our expectation is that it will pick up.”

— Adrian Rodriguez, vice president of marketing and retail sales at Commercial Tire Inc.

“We forecast that the current economic pressures faced by consumers will continue for at least the remainder of 2024, but there are both macro and micro-economic factors that can bring upon rapid change.”

SEPTEMBER

“I want to maximize my best program.

You’ve got to be really careful about where you’re buying from because that can get split up and then you end up with no back-end money. When you’re a small business and small volume, that back-end money makes a ton of difference.”

— Beth Barron, CEO of Chabill’s Tire & Auto Service and MTD’s 2024 Tire Dealer of the Year

OCTOBER

“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.”

— Michael Feder, interim CEO of American Tire Distributors Inc.

NOVEMBER

“General inflation is really hurting and impacting our business. Everything just costs more now than it did three to four years ago. That has kind of bogged everything down a bit — us included.”

— Carson Wright, executive vice president, Nebraskaland Tire Co. Inc.

DECEMBER

“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 ... many farmers will have cash on hand.”

— Alan Eskow, vice president, BKT USA Inc.

MTD January 2025

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Industry News

Bites Big Brand adds chain Percheron Capital-owned Big Brand Tire & Service Inc. has acquired Tulsa, Okla.-based Robertson Tire Co. Inc., which has 14 retail locations. The deal marks Big Brand Tire & Service’s entry into the Oklahoma market.

The dealership has more than 230 locations.

SRNA hikes prices Sumitomo Rubber North America Inc. raised prices in the U.S. and Canada on select Falken passenger, light truck and commercial truck products on Jan. 1. The tiremaker says the increase is in response to the “continued rise in operational costs.”

Harmon moves up Yokohama TWS has named Lawrence Harmon its regional president, North and Central America. Harmon most recently served as president of Yokohama ATG’s global OE business.

Nexen appoints CEO Nexen Tire Corp. has announced the promotion of five executives, including the naming of a new CEO, John Bosco Kim. Kim has been with Nexen since 1990 and has served as the head of the tiremaker’s global original equipment sales business group since 2021.

Myers names new chief Myers Industries Inc., the owner of Myers Tire Supply, has named Aaron Schapper its new president and CEO. He assumed the role on Jan. 1.

OTR business to grow The global OTR tire market will enjoy a compound annual growth rate of 4.9%, according to a new study from Smithers. Expansion is being driven by the ongoing transition to electric and hybrid vehicles, says Smithers.

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ATD enters into agreement with buyer

A

merican Tire Distributors Inc. (ATD) says it has entered an asset purchase agreement (APA) with “a buyer entity.”

According to ATD, the entity includes “credit funds and accounts managed

by Guggenheim Partners Investment Management LLC, KKR, Monarch Alternative Capital LP, Sculptor Capital Management Inc. and Silver Point Capital, L.P., collectively, the ‘Ad Hoc Lender Group.’”

ATD categorizes the agreement with the entity as a “stalking horse agreement.”

“We are taking the expected next step in our process to best position ATD for longterm success and as a stronger partner to manufacturers and customers who rely on us for their business needs,” says Jim Bienias, chief restructuring officer of ATD and partner and managing director at AP Services LLC, an affiliate of AlixPartners LLP. “We appreciate the Ad Hoc Lender Group’s support and strong belief in our business and associates. We look forward to working with them as we continue our court-supervised process to transition the company’s ownership and ensure value is maximized for all stakeholders.”

Bienias also expressed gratitude for the support of its customers and vendors and said, “We look forward to continuing to work with them and help them drive their businesses. I’m also thankful to all of our associates for their continued hard work and dedication to ATD.” According to a statement from ATD, “the APA contemplates that substantially all of the company’s assets will be acquired through a credit bid of certain of the company’s funded debt, as well as additional consideration, including the assumption of post-petition trade payables and other liabilities, which will reduce ATD’s debt by $1.3 billion and significantly enhance its operational flexibility.

“Additional details regarding the consideration for the transaction are included in court filings. The APA will be subject to a competitive sale process pursuant to Section 363 of the U.S. Bankruptcy Code (the ‘sale process’), during which ATD is soliciting and may consider other bids submitted by third parties, in accordance with certain court-approved bidding procedures.”

ATD expects to complete the sale process in early-2025.

Chabill’s team celebrates a ‘great year’

T

he team at Chabill’s Tire & Auto Service combined its annual company Christmas party and employee awards night with another special ceremonial moment honoring CEO Beth Barron, who was named MTD’s 2024 Tire Dealer of the Year.

MTD Managing Editor Joy Kopcha was on hand to officially present Barron with a plaque honoring her achieve- Chabill’s Tire & Auto Service honored two ment. Barron was greeted with a rounding thunder of employees with the applause from her team. She thanked the vendors in atten- Employee of the Year dance who support Chabill’s Tire & Auto Service each day, Award for 2024: Nathan but who also supported her with congratulatory advertise- Nall, manager of the in Prairieville, La., ments that in turn helped raise more than $12,000 for charity. store and Lindsey Pederson, “Most importantly, I want to thank the people that are who works in the the engine that runs Chabill’s — my coworkers,” she said. corporate office.

“Each of you play a vital role in our success and without Photo: MTD each of you, Chabill’s would not be what it is today.”

The traditional close to the company’s Christmas dinner is the presentation of employee awards. Chabill’s recognizes employees who celebrate significant service anniversaries and also names top employees in a number of categories, from commercial road service to store support personnel and top technicians. Barron said the purpose of the night is “to celebrate what a great year we had.”

MTD January 2025

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Industry News

No wheel weight rulemaking from EPA

Bites Burt Brothers expands Burt Brothers Tire & Service Inc. is continuing its expansion with the opening of its 29th location, a 8,200-square-foot, 12-bay store in Pleasant View, Utah. Burt Brothers Tire & Service CEO Brian Maciak says the dealership wants to add 40 locations within the next three years and eventually expand to 75 to 100 stores within five years.

Feldbauer joins Shrader Toledo, Ohio-based Shrader Tire and Oil Co. has appointed Bob Feldbauer as its new chief operating officer, effective Jan. 1.

Feldbauer steps into this role after serving as CEO and president of Logan, Utah-based Jack’s Tire & Oil Management Co., which was acquired by Purcell Tire & Rubber Co. this past August.

T

The U.S. Environmental

he U.S. Environmental Protection Agency Protection Agency has declined (EPA) says it will not initiate rulemaking to initiate rulemaking around addressing the manufacture and distribu- the manufacture and use of lead weights. tion of lead wheel weights.

The agency’s analysis shows “that risks to Photo: Hunter Engineering Co. children from lead wheel weights are significantly lower than described in the petition EPA received on this issue in 2009.” The EPA estimates that dust from lead wheel weights “represents an extremely small fraction of a child’s overall residential lead exposure, even if the residence is near busy roads.”

The EPA also has found that nine U.S. states, plus Canada, have banned lead wheel weights and the agency was informed “that vehicle manufacturers no longer install lead wheel weights on new vehicles sold in the U.S.” In April 2024, the EPA requested public comments on the use of lead wheel weights, but did not receive “additional data” beyond what it had already considered.

The EPA’s preliminary assessment “shows extremely low risk associated with roadside exposure of lead wheel weights, even when making conservative assumptions. For example, EPA used studies that pre-date manufacturer phase out of lead wheel weights and likely overestimate the frequency of lead wheel weight use in the U.S.” Commenting on the EPA’s decision, Gregory Parker, sales and marketing director for Wegmann Automotive North America, says that “lead wheel balance weights have been a topic of discussion for more than 100 years, originally invented in the 1920s.

Regardless of what material a shop chooses, lead or non-lead, the automotive market will never stop demanding quality products from proven suppliers.”

2025

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Industry News

Bites CEAT acquires Camso CEAT Ltd. is acquiring the Camso brand from Michelin Group for $225 million. The Camso line, which includes off-highway bias-ply construction tires and tracks, has been part of Michelin’s portfolio since 2018.

Conti to spin off auto Continental AG, parent company of Continental Tire the Americas LLC, has approved a plan to spin off its automotive business unit by the end of 2025 in order to focus on its Tires and ContiTech divisions.

Mike Vargo dies Mike Vargo, who led Parrish Tire’s wholesale division from the 1980s through 2013, recently died at the age of 77. He also owned two Parrish-McIntyre Tire retail stores.

Mizutani to take new role at Toyo

T

omo Mizutani, chairman and CEO of Toyo Tire Holdings of Americas Inc., will move into a full-time advisor role with the company on March 26, 2025.

On that date, Tatsuo Mitsuhata will become the new chairman and CEO of Toyo Tire Holdings of Americas Inc., according to a statement issued by parent company Toyo Tire Corp. Mitsuhata currently serves as Toyo Tire Corp.’s director, corporate officer, and vice president, sales headquarters.

Mizutani assumed his current role with Toyo Tire Holdings of Americas in January 2024, after serving as chairman and CEO of Nitto Tire U.S.A. Inc. and president and CEO of Toyo Tire North America OE Sales LLC. He was replaced in the top role at Nitto Tire U.S.A. last year by Keiko Brockel.

Toyo Tire Corp. has announced several other executive appointments that will go into effect on March 26, including the promotion of Kiyohito Hasumi to director, corporate officer, and vice president, business headquarters.

Sun Auto surpasses 500-store mark

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he recent purchase of 24 Greulich’s Auto Repair shops in the greater Phoenix, Ariz., metro area gives Sun Auto Tire & Service Inc. more than 500 stores in total. The purchase extends Sun Auto Tire & Service’s Arizona footprint to 83 locations. Sun also has opened three new Plaza Tire Service shops in Arkansas, Illinois and Indiana.

“These additions are the latest chapter in a continuining story of vigorous nationwide expansion for Sun Auto Tire & Service brands, marking a major growth milestone by exceeding 500 locations nationwide,” say Sun Auto Tire & Service officials.

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NumbersThatCount

Relevant statistics from an industry in constant motion

20%

Consumers who say they will buy or lease an EV in the next year Source: Hankook Tire Gauge Index (Nov) Photo: Hankook Tire America Corp.

$68.7 BILLION

Value of automotive parts imported from Mexico and Canada in 2023

Source: U.S. Department of Commerce, Bureau of the Census, Foreign Trade Division Photo: 19323760 © Nataliya Hora | Dreamstime.com

$170.6 BILLION

Value of U.S. tire manufacturing Source: U.S. Tire Manufacturers Association Photo: Yokohama TWS

22

Number of certifications a technician must earn to be certified as “World Class” Source: Automotive Service Excellence (ASE) Photo: MTD

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78,000

Increase in the number of automotive technicians entering the industry from 2020 through 2022 Source: TechForce Foundation Photo: MTD

MTD January 2025

1/13/25 12:05 PM

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Tier-three tires remain in the lead BUDGET-FRIENDLY TIRES ARE TOPS FOR SEVENTH STRAIGHT MONTH By

John Healy

R

etail tire sellout was up slightly — by less than 1% — in November 2024, but it’s a gain for tire dealers over October 2024 results and is largely similar to September trends.

Independent tire dealers averaged sellout growth of 0.7% this past November, an improvement from the 1.7% decline in October. Trends during the third quarter slowed and were in the range of flat-todown slightly.

Regional volume reports showed the Northeast and Midwest regions saw gains in the mid-single digits. Other parts of the country saw negative volume trends, with the Mid-Atlantic showing the weakest market and volumes down a significant 7.5%, year-over-year.

GAINS FROM THE FIRST SNOWFALL

Dealers reported that the first part of November continued October’s trends, but when some winter weather arrived later in the month in the Northeast and Midwest, tire replacement was suddenly at the forefront of consumers’ minds. Looking ahead, we note that December had a slightly positive comparison, with retail sellout volumes that were up 1% year-over-year.

We wouldn’t be surprised to see final 2024 figures showing flat results.

Miles driven numbers were roughly flat in November, following a low single-digit increase in the third quarter. Our Miles Driven Momentum Index registered a 0.3% year-over-year decrease in November, but

that followed a robust 5.5% increase in October. We believe miles driven trends were negatively affected by heavy snowstorms in the Great Lakes regions at the end of the month of November. Throughout 2024, we consistently saw miles driven trends ahead of pre-pandemic trends and we expect to continue to see flat-to-slightly-elevated trends in the months ahead.

NATURAL RUBBER PRICES RISE

In the world of raw materials, the cost of the basket of raw materials needed to build a basic replacement tire increased 5.4% in November 2024, year-over-year and fell 0.2% from October levels. This follows a 10.5% year-over-year average increase during the third quarter of 2024, which followed a 9.5% year-over-year increase in the second quarter of the year.

Holding raw material pricing steady would equate to a 5.8% year-over-year increase in the input costs to build a tire.

The cost of natural rubber remains the most volatile of the inputs and in November, that cost grew 41% year-over-year as supply remains pressured in Southeast Asia. Synthetic rubber prices showed a 10.3% year-over-year increase for the month. Oil, carbon black and tire fabric/ cordage all showed price drops in November — 13%, 3.2% and 6.1%, respectively.

DEALERS REPORT DEMAND

The commentary we’ve gathered from dealers suggests consumer demand for

Snapshot of Dealer’s PLT Tire Volumes (Year-Over-Year Change) Sep-23

Oct-23

Nov-23

Sep-24

Oct-24

Nov-24

Average

Increase

55%

20%

50%

53%

11%

55%

40%

Flat

17%

20%

10%

20%

45%

18%

27%

Decline

28%

60%

40%

27%

44%

27%

33%

Total

100%

100%

100%

100%

100%

100%

100%

SOURCE: NORTHCOAST RESEARCH ESTIMATES

20

2501MTD_20-21_YourMarketplace.indd 20

passenger and light truck replacement tires was slightly positive for November. More than one-third — 37% of independent dealers — said they experienced positive demand trends, an improvement from the net negative 33% demand dealers reported in October 2024.

Consumer deferment and trade-down have been consistent themes over several months. We believe that the early signs of winter weather prompted consumers to rush to get caught up on vehicle maintenance and tire replacement ahead of the winter season. Yet we note that consumers continue to trade down to tier-two and tier-three tires. And dealers continue to call out soft trends for premium, tier-one tire brands.

There’s proof of that trend in our look at the best and worst performers. Dealers indicate tier-three tires were again the most in demand in November. That marked seven straight months at the top of the demand rankings.

This is different from our observed long-term trend, where tier-two tire brands have historically been the most popular in the decade-plus history of our survey. Tier-two brands were again in second place, while premium, tier-one brands remained in last place for a third consecutive month.

This kind of stability in the mix is unusual. While we believe November’s result to be an indication of the type of buyer in the marketplace, we traditionally see a high level of volatility in our monthto-month tier rankings. Even with that, historically tier-two brands have risen to the top of demand for their balance of cost and performance characteristics. ■ 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.

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2025 MTD Facts Issue

MTD’S FACTS ISSUE CHARTS NEW BASELINE FOR THE TIRE MARKET

A

fter nearly five tumultuous years, starting with the shock of an unprecedented, global pandemic, the United States tire market came full circle during 2024 — not only returning to pre-COVID-19 levels, but finding a new equilibrium that, if certain dynamics hold, could form the baseline that will determine the trajectory of the next 12 months.

The past year was defined by several significant trends and events, chief among them the continued gravitation of budget-conscious consumers to third- and even fourth-tier brands.

Though this shift was more prevalent on the retail side, it wasn’t exclusive to that channel. Commercial tire dealers reported that some of their customers developed a preference for less-expensive products as they attempted to strike a balance between price and performance.

Sellout levels alternated throughout 2024, fl ipping to positive during the second quarter, but then oscillating during the back half of the year due to continued consumer deferral of tire replacement, the delayed onset of winter weather in many parts of the country and other factors.

The wholesale distribution channel experienced a momentous shake-up with the bankruptcy of American Tire Distributors Inc., the company’s second Chapter 11 fi ling in six years.

At the original equipment (OE) level, fewer units were shipped within the passenger and medium truck tire channels in the U.S. than were shipped in 2023. However, the OE light truck tire channel experienced a step-up in units, reflecting the ever-growing popularity of the light truck vehicle category and automakers’ prioritization of light truck production.

Last year proved to be a strong period for imports as units were up across three categories: passenger, light truck and medium truck. Thailand retained its position as the biggest exporter of tires to the U.S., despite looming tariffs on TBR tires manufactured in that country.

While imports surged, several tiremakers continued to bet on domestic manufacturing by making large-scale investments in existing manufacturing facilities. Many of these investments are ongoing.

WHAT’S NEXT

The biggest wild card heading into 2025 is the general state of the economy. Despite small fluctuations, the rate of inflation continues to decline, which could help stimulate consumer 22

2501MTD_22-23_FACTS_SalesShipments.indd 22

World Leaders in New Tire Sales (Fiscal year 2024; in billions of U.S. dollars)

TIRE MANUFACTURER

2024

2023

Michelin Group

$27.6

$29.1

Bridgestone Corp.

$21.3

$22.7

Goodyear Tire & Rubber Co.

$15.7

$17.2

Continental AG

$14.7

$15.0

Pirelli & Cie SpA

$7.4

$7.1

Hankook Tire & Technology Co. Ltd.

$6.7

$6.8

Sumitomo Rubber Industries Ltd.

$6.6

$7.1

Yokohama Rubber Co. Ltd.

$6.1

$6.2

Zhongce Rubber Group Co. Ltd.

$4.6

$4.7

Toyo Tire Corp.

$3.4

$3.5

Cheng Shin Rubber Ind. Co. Ltd.*

$2.9

$3.0

Giti Tire Pte. Ltd.

$2.9

$3.2

*Cheng Shin does business as Maxxis International-USA

All estimates in this section are the result of MTD research, unless otherwise noted.

MTD January 2025

1/13/25 12:05 PM

Image: 1076905886 | arthead | Adobe Stock

Full circle

demand. However, if the Trump administration makes good on its threats to impose punitive tariffs on key U.S. trading partners like China, Canada and Mexico, the price of consumer goods could increase considerably, compelling tire buyers to once again close their wallets.

Another unknown is the ongoing cost of shipping. Drewry, one of the world’s foremost international shipping consultants and analysts, expects transpacific freight rates to increase in the coming weeks, driven in part by “anticipated tariff hikes” in the U.S. The ongoing war in the Middle East also will have the potential to create more shipping and freight rate instability.

On the plus side, it’s expected that miles driven will continue on an upward trend and the United Steelworkers will most likely decline to push for new tire tariffs, having achieved dual victories during 2024 via the government’s imposition of countervailing duties on TBR tires imported from Thailand and winning a tariff extension on TBR tires made in China.

In addition, many tire wholesalers and dealers seem to have successfully right-sized their inventories, leading to extended stabilization of wholesale tire margins. And the average age of used cars remains at an all-time high, which will benefit dealers when vehicles need to be repaired.

Here’s a look at how some of the world’s largest tiremakers fared during 2024, in terms of global sales:

U.S. REPLACEMENT TIRE SALES BY SEGMENT

In billions; total value of 2024 U.S. replacement tire market: $57.7 billion

U.S. PASSENGER TIRE SHIPMENTS

(in millions of units, rounded to the nearest one-hundred-thousandth)

SEGMENT

2024

2023

Year

Replacement

OE

Passenger

$36.6

$37.6

2024

212.0

41.4

2023

215.0

46.6

2022

216.1

41.5

2021

222.0

37.5

2020

202.6

36.2

2019

222.7

45.1

2018

217.0

47.0

2017

209.3

46.0

Average tire sales margins declined slightly in the passenger and light truck retail segments as the general cost of business continued to rise. Growing acceptance of less-expensive brands by trucking fleets helped boost medium truck tire margins.

2016

207.7

49.0

2015

205.9

46.3

2014

206.6

44.0

U.S. AVERAGE TIRE SALES MARGINS

U.S. LIGHT TRUCK TIRE SHIPMENTS

Light truck

$8.4

$8.5

Commercial truck

$10.0

$8.4

OTR

$2.0

$1.8

Ag

$.720

$.735

MARGIN MIGRATION

Segment

2024

2023

Passenger (retail)

27.0%

28.5%

Passenger (wholesale)

12.0%

12.0%

Light truck (retail)

24.5%

26.0%

Medium truck

17.5%

16.7% 19.0%

Retread (medium truck)

SHIPMENTS SHIFTED

18.0%

Image: 1076905886 | arthead | Adobe Stock

Following trends that played out during 2023, U.S. replacement shipments continued to moderate, with replacement passenger and light truck shipments contracting to 212 million units and 33.5 million units, respectively, during 2024.

Replacement medium truck tire shipments increased slightly year-over-year — nowhere near the dramatic peak seen during 2022, but much closer to 2021 totals.

In the OE channel, light truck tire shipments increased, jumping from 5.8 million units in 2023 to 7.3 million tires in 2024, underscoring trends in new vehicle manufacturing.

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

2501MTD_22-23_FACTS_SalesShipments.indd 23

(in millions of units, rounded to the nearest one-hundred-thousandth)

Year

Replacement

OE

2024

33.5

7.3

2023

34.0

5.8

2022

37.0

6.2

2021

38.1

5.6

2020

30.4

5.0

2019

32.0

5.9

2018

31.1

5.6

2017

30.8

5.4

2016

31.4

4.9

2015

29.0

4.6

2014

28.8

4.4

U.S. MEDIUM TRUCK TIRE SHIPMENTS

(in millions of units, rounded to the nearest one-hundred-thousandth)

Year

Replacement

OE

2024

21.2

5.8

2023

20.2

6.5

2022

28.0

6.5

2021

22.7

5.9

2020

18.5

4.5

2019

18.9

6.5

2018

21.0

6.2

2017

19.2

5.7

2016

18.4

5.3

2015

18.0

6.3

2014

17.3

5.8 23

1/13/25 12:05 PM

Imports

A big year for imports

MORE THAN ONE OUT OF FOUR IMPORTED TIRES COMES FROM THAILAND

T

rade data proves that 2024 was indeed a strong year for tire imports in the United States market. Units were up across the passenger, consumer and medium truck tire categories.

And as it turns out, there was no giant-killer looming behind the scenes. Thailand remains the leading producer and exporter of tires in all three categories, having shipped almost 57.8 million passenger, light truck and medium truck tires to the U.S. in 2024.

That’s more than a quarter of all the tires imported into the country in those three categories.

A tariff investigation that stretched over a 12-month period and covered truck tires made in Thailand so far hasn’t had a noticeable effect, though the 12.33% fee on most TBR tires from Thailand was only levied in early-November. (Bridgestone Corp.’s tires from Thailand will be subject to a much higher 48.39% tariff.)

But there are interesting trends beyond Thailand.

Imports from South Korea were down in every category — and by significant margins — in 2024. It was the second straight year of double-digit percentage decreases for imported tires from South Korea.

On the flip side is Cambodia, which appeared on the top 10 import charts for passenger and consumer tires for the first time in 2023. A year later, Cambodia leap-frogged over other countries in those categories and emerged as the fifth-largest exporter of truck and bus tires to the U.S. Cambodia’s numbers and year-over-year increases are truly staggering — up 64.6% in passenger tires, 73.1% in consumer tires, and a whopping 1,354.7% increase in the truck tire category.

Cambodia didn’t ship a single medium truck tire to the U.S. in 2022, which makes the growth there all the more astounding.

Overall, Cambodia shipped more than 13.5 million tires into the U.S. market in 2024.

Globally, imports of medium truck tires into the U.S. were up 9.41%, with shipments totaling around 18.9 million units, compared to 17.2 million in 2023. After a tough year in 2023, where every nation on the TBR top 10 list saw a decline in shipments, six of the top 10 medium truck tire exporters returned to the black.

2024 U.S. Passenger Tire Imports

2024 U.S. Medium Truck Tire Imports

2024 U.S. Consumer Tire Imports (in millions of units, rounded)

Country

2024

2023

% Change

Thailand

50.5

42.5

18.6

Mexico

25.1

24.5

2.4

Vietnam

20.7

17.6

18.1

Indonesia

15.2

15.6

-2.5

Canada

13.8

14.3

-3.1

Cambodia

12.4

7.2

73.1

Japan

10.5

11.2

-6.0

South Korea

10.2

13.5

-24.7

Philippines

5.8

5.0

15.7

Chile

5.6

5.9

-4.6

Country

2024

2023

% Change

Country

2024

2023

Thailand

42.0

36.3

15.7

Thailand

7.2

7.0

4.0

Mexico

22.9

22.7

0.6

Vietnam

2.9

2.2

33.5

Vietnam

15.0

13.3

12.8

Japan

1.6

2.0

-19.5

Indonesia

13.4

13.9

-3.5

Canada

1.5

1.4

7.3

Canada

10.2

10.0

1.2

Cambodia

1.0

0.7

1,354.7

South Korea

8.9

11.9

-25.7

China

0.8

1.0

-13.4

Cambodia

8.8

5.3

64.6

India

0.6

0.4

36.4

Japan

8.7

9.0

-3.1

South Korea

0.5

0.7

-17.6

Chile

4.9

5.2

-7.0

Spain

0.4

0.4

0.4

Malaysia

3.6

4.0

-10.6

Brazil

0.2

0.3

-8.6

2501MTD_24-25_FACTS_Imports.indd 24

•

(in millions of units, rounded)

% Change

Image: arthead | 496870761 | Adobe Stock

(in millions of units, rounded)

24

•

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Channel market share

Declaration of independence INDEPENDENT DEALERS PICKED UP SHARE IN 2024

I

CHANNEL

2024

2023

2022

Independent tire dealerships

67.0%

66.0%

66.0%

Auto dealerships

9.5%

9.5%

9.5%

Mass merchandisers

8.5%

9.0%

9.0%

Warehouse clubs

8.5%

8.5%

8.0%

Tire company-owned stores

5.5%

6.0%

6.0%

Miscellaneous outlets

1.0%

1.0%

1.5%

GETTING IT WHOLESALE

Independents continued to dominate the U.S. consumer tire wholesale channel, but tire company-owned distributors increased their share during 2024. TireHub LLC, the joint venture between Goodyear Tire & Rubber Co. and Bridgestone Americas Inc., opened a regional distribution center in the Dallas/Ft. Worth, Texas, area in October. TireHub also announced plans to open warehouses in Milwaukee, Wis.; Boston, Mass.; and Charleston, S.C., before the end of 2024.

CHANNEL

2024

2023

2022

Independent wholesale-distributors

80.0%

80.0%

80.0%

Tire company-owned

11.0%

10.5%

10.0%

Miscellaneous outlets

9.0%

9.5%

10.0%

DEALERS BY OUTLETS

Of all independent tire dealerships in the U.S., according to MTD research, 60% have one location, 7% have two to 10 stores and 33% have 11 or more locations.

INDEPENDENT TIRE DEALERS (# OF OUTLETS) Single location

PERCENTAGE 60.0%

2-10 locations

7.0%

11+ locations

33.0.%

26

2501MTD_26-27_FACTS_ChannelMarketShare.indd 26

PRIVATE EQUITY-OWNED TIRE DEALERSHIPS OWNER

BayPine LP/TSG Consumer Mavis Tire Express Services Corp. Partners/David and Stephen Sorbaro Les Schwab Tire Centers Inc.

Meritage Group LP

Sun Auto Tire & Service Inc.

Leonard Green & Partners

Big Brand Tire & Service

Percheron Capital

Straightaway Tire & Auto

O2 Investment Partners LP

Dobbs Tire & Auto Centers

Audax Private Equity

Goodturn Tire & Auto

Garnett Station Partners

Burt Brothers Tire & Service Inc.

Bestige Holdings

THE CLUB SCENE

Among warehouse clubs, Costco Wholesale Corp. added the most outlets within the last 12 months, jumping from 591 locations at the end of 2023 to nearly 620 locations by the end of 2024. Sam’s Club’s total number of outlets remains flat year-over-year. BJ’s Wholesale Club Inc. shuttered a handful of locations between 2023 and 2024.

NUMBER OF WAREHOUSE CLUBS IN THE U.S. WAREHOUSE CLUB

2024

2023

2022

Sam’s Club

600

600

600

Costco Wholesale Corp.

618

591

579

BJ’s Wholesale Club Inc.

247

252

233

A LOOK AT THE REST

U.S. CONSUMER TIRE WHOLESALE SHARE

NUMBER OF OUTLETS

Private equity firms continue to increase their ownership of independent tire dealerships. The list of publicly known, private equity-owned or controlled tire dealerships has grown from last year, representing more than 3,400 individual locations at press time, based on MTD research.

DEALERSHIP

ndependent tire dealerships remained the dominant consumer tire retail sales channel in the United States and even gained some share in 2024. Meanwhile, the mass merchandisers channel lost share, as Walmart closed nearly three dozen outlets, while the tire company-owned channel ceded some ground, too.

U.S. CONSUMER TIRE RETAIL MARKET SHARE

PRIVATE EQUITY INVESTMENT

Walmart Auto Care Centers reduced its footprint in 2024, shedding 30 stores, according to MTD research. Near the end of 2024, Goodyear confirmed that it had around 500 company-owned and operated stores, down from the 554 total stores that MTD reported this time last year. Bridgestone added nearly 15 stores in the last 12 months.

OTHER TOP TIRE RETAILERS IN THE U.S.

2024 LOCATIONS

2023 LOCATIONS

Walmart Auto Care Centers

2,570

2,600

Bridgestone Retail Operations

2,240

2,226

Pep Boys – Manny, Moe & Jack

850+

850+

RETAILER

Ford Quick Lane & Auto Centers

800+

800+

Goodyear Tire & Rubber Co.

504

554

MTD January 2025

1/13/25 12:05 PM

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Replacement PLT brand market share

Trade-down continues

CASH-STRAPPED CUSTOMERS VOTED WITH THEIR WALLETS

T

Image: srthead | 518977710 | Adobe Stock

rends come and go in the passenger and light truck tire segments, but one trend that gained significant traction during 2024 is the gravitation of financially pinched consumers to less-expensive brands — a drift that took hold during the COVID-19 pandemic and has not performed a U-turn.

In response, many dealers have expanded their selection of tier-three and even tier-four tires as consumers continue to feel the squeeze.

“While growth in income has outpaced debt, elevated balance levels continue to reveal stress for many households,” according to a recent report from the Federal Reserve Bank of New York. During the third quarter of 2024, “credit card balances increased by $24 billion to hit $1.17 trillion and auto loan balances saw an $18 billion increase and stood at $1.64 trillion.”

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

2501MTD_28-29_FACTS_ReplacementPLTMarketShare.indd 29

2024 REPLACEMENT PASSENGER TIRE MARKET SHARE

2024 REPLACEMENT LT TIRE MARKET SHARE

(based on an estimated 33.5 million units)

(based on an estimated 212 million units)

BRAND

2024 SHARE

Goodyear

7.5%

BRAND

2024 SHARE

Michelin

10.0%

BFGoodrich

7.0%

Goodyear

9.0%

Firestone

7.0%

Bridgestone

6.5%

Bridgestone

6.0%

Firestone

6.5%

General

6.0%

Continental

5.0%

Michelin

5.5%

Falken

5.0%

Toyo

5.5%

Hankook

5.0%

Yokohama

5.0%

BFGoodrich

3.5%

Cooper

4.5%

Kumho

3.5%

Falken

4.0%

Yokohama

3.5%

Hankook

4.0%

General

3.0%

Hercules

3.0%

Cooper

2.5%

Kumho

3.0%

Toyo

2.5%

Nitto

2.5%

Delinte

2.0%

Continental

2.0%

GT Radial

2.0%

Pirelli

2.0%

Hercules

2.0%

Sailun

2.0%

Nexen

2.0%

GT Radial

1.5%

Pirelli

2.0%

Kenda

1.5%

Sailun

2.0%

Maxxis

1.5%

Kenda

1.5%

Nexen

1.5%

Nitto

1.5%

Atturo

1.0%

Big O

1.0%

Delinte

1.0%

Douglas

1.0%

Fortune

1.0%

Landsail

1.0%

Landsail

1.0%

Maxxis

1.0%

Prinx

1.0%

Multi-Mile

1.0%

Sumitomo

1.0%

Sumitomo

1.0%

Thunderer

1.0%

Sure Drive

1.0%

Others

10.5%

Others

12.5%

29

1/13/25 12:05 PM

OE tire market share

On the Rebound

NEW VEHICLE SALES WERE EXPECTED TO FINISH STRONG

N

ew vehicle sales in the United States were predicted to total nearly 15.8 million units in 2024 — up from 15.5 million units in 2023 and the highest point since 2019, according to a recent report from Cox Automotive.

“With the U.S. election season now in the rearview mirror, we are seeing a bit of a bump-up in sales,” said Charlie Chesbrough, senior economist at Cox Automotive. “Both October and November saw a shift to a higher sales pace and a similar outcome” was forecast for December 2024. “Many buyers who thought it best to wait to get the best deal are realizing now is the time to buy.”

Cox Automotive predicts that the new vehicle market will grow by 3% in 2025.

2024 NORTH AMERICAN OE CONSUMER TIRE MARKET SHARE TOTALS BRAND

2024 SHARE

2023 SHARE

Goodyear

21.7%

21.9%

Michelin

18.7%

18.7%

Continental

14.6%

14.5%

Bridgestone

13.3%

13.3%

Hankook

7.7%

7.7%

Pirelli

3.9%

3.9%

Firestone

3.7%

3.7%

Falken

3.6%

3.6%

Kumho

2.5%

2.5%

General

2.4%

2.4%

Yokohama

2.1%

2.1%

BFGoodrich

1.8%

1.8%

Nexen

1.8%

1.7%

Toyo

1.2%

1.2%

Others

1.0%

1.0%

30

2501MTD_30-31_FACTS_OETireMaketShare.indd 30

2024 NA OE CONSUMER TIRE BRAND MARKET SHARE Brand

BMW

Pirelli Continental Bridgestone Dunlop Michelin Hankook Yokohama

2024 2023

Brand

34% 26% 25% 6% 5% 3% 1%

Continental

32%

32%

Continental

40%

40%

Pirelli

25%

25%

Michelin

25%

25%

Bridgestone

14%

14%

Goodyear

20%

20%

Michelin

11%

11%

Pirelli

10%

10%

Goodyear

6%

7%

Hankook

5%

5%

Cooper

5%

5%

Dunlop

5%

4%

Toyota

Yokohama

2%

2%

Bridgestone

25%

25%

Michelin

25%

25%

Goodyear

11%

12%

34% 26% 25% 6% 5% 3% 1%

Ford Goodyear

23%

24%

Michelin

24%

24%

Continental

21%

20%

Hankook

10%

10%

Pirelli

10%

General

2024 2023

MercedeS- Benz

Brand

2024 2023

Tesla

Nissan Continental

28%

28%

Continental

6%

6%

Michelin

27%

27%

Hankook

6%

6%

Goodyear

14%

14%

BFGoodrich

5%

5%

9%

Falken

8%

8%

Dunlop

5%

5%

6%

7%

Bridgestone

6%

6%

Toyo

5%

5%

BFGoodrich

3%

3%

Kumho

5%

5%

Falken

4%

3%

Bridgestone

2%

2%

Toyo

5%

5%

Yokohama

4%

4%

Toyo

1%

1%

Hankook

3%

3%

Firestone

3%

3%

BFGoodrich

2%

2%

General

1%

1%

Dunlop

1%

1%

General

1%

1%

Continental

46%

46%

Kumho

14%

14%

GM

Goodyear Michelin Bridgestone Firestone Continental Hankook Pirelli General

HONDA

Michelin Goodyear Bridgestone Continental Hankook Yokohama Firestone Pirelli

36% 22% 14% 12% 7% 6% 2% 1%

36% 22% 14% 12% 6% 6% 2% 2%

25% 25% 17% 16% 9% 4% 3% 1%

25% 25% 17% 16% 9% 4% 3% 1%

Hankook

40%

40%

Kumho

30%

30%

Nexen

21%

Continental

9%

Stellantis Goodyear

31%

32%

Goodyear

12%

13%

Michelin

14%

14%

Hankook

11%

11%

Bridgestone

13%

13%

Falken

9%

9%

Firestone

7%

7%

Bridgestone

5%

5%

Continental

6%

6%

Nexen

3%

2%

Yokohama

6%

6%

Falken

5%

5%

Volvo

Nexen

4%

4%

Pirelli

50%

50%

BFGoodrich

3%

3%

Continental

30%

30%

Michelin

20%

20%

General

3%

3%

Pirelli

3%

3%

Hankook

2%

2%

Kumho

2%

2%

Nexen

1%

NA

Bridgestone

56%

56%

Continental

27%

27%

21%

Falken

7%

7%

9%

Goodyear

6%

6%

Yokohama

4%

4%

Hyundai/Kia

Volkswagen

Subaru

MTD January 2025

1/13/25 12:05 PM

2501MT

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2501MTD_30-31_FACTS_OETireMaketShare.indd 31 2501MTD_ContinentalTire.indd 1

1/13/25 12:05 PM 1/6/25 8:54 AM

Dealer distribution

No place like home

WHERE DEALERS DO BUSINESS – BY REGION AND STATE

T

he number of independent tire dealer locat ions in t he United States remains steady at about 29,000. As in years past, the biggest percentage of dealers do business in the South Atlantic region, with the East North Central region a distant second. The fewest number of dealers are concentrated in New England.

Here’s a breakdown of tire dealership distribution by both region and state.

INDEPENDENT TIRE DEALER LOCATIONS BY REGION AND STATE

West North Central

(Based on 29,000 total)

New England

5%

Massachusetts...............................

Connecticut......................................

New Hampshire...............................

Maine................................................

Rhode Island....................................

Vermont.............................................

36% 21% 16% 15% 6% 6%

Middle Atlantic

9%

Missouri...........................................

Minnesota.......................................

Iowa.................................................

Kansas.............................................

Nebraska.........................................

North Dakota...................................

South Dakota...................................

South Atlantic

Pennsylvania.................................... 44% New York.......................................... 34% New Jersey...................................... 22%

Florida..............................................

North Carolina.................................

Georgia............................................

Virginia............................................

South Carolina................................

Maryland.........................................

West Virginia...................................

Delaware.........................................

Washington, D.C.............................

East North Central

East South Central

Ohio...................................................

Illinois...............................................

Michigan...........................................

Indiana..............................................

Wisconsin.........................................

32

2501MTD_32-33_FACTS_DealerDistribution.indd 32

14%

30% 24% 19% 15% 12%

Tennessee.......................................

Alabama..........................................

Kentucky.........................................

Mississippi......................................

10% 30% 20% 17% 14% 10% 5% 4%

22% 29% 18% 19% 13% 9% 7% 3% 1% 1%

7%

34% 30% 22% 14%

West South Central

Texas................................................

Louisiana.........................................

Oklahoma........................................

Arkansas.........................................

Mountain

13%

65% 13% 12% 10%

8%

Arizona............................................

Colorado..........................................

Utah..................................................

Idaho................................................

Nevada............................................

New Mexico....................................

Montana..........................................

Wyoming.........................................

23% 23% 14% 10% 9% 9% 8% 4%

Pacific

12%

California......................................... 75% Washington.................................... 13% Oregon............................................. 10% Alaska.............................................. 1% Hawaii.............................................. 1%

NUMBERS ARE BASED ON TIRE DEALERSHIPS’ SELF-DISCLOSURES AND ADDITIONAL MTD RESEARCH.

MTD January 2025

1/13/25 12:05 PM

2501MT

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www.rangerproducts.com © 2025 BendPak Inc. Ranger Products is a registered trademark of BendPak.

2501MTD_32-33_FACTS_DealerDistribution.indd 33 2501MTD_BendPak_TireRack.indd 1

1/13/25 12:05 PM 1/6/25 8:53 AM

Brand distribution

On-brand

HOW TIRE BRANDS ARE DISTRIBUTED AMONG DEALERS

H

ere were the most frequently mentioned brands on the 2024 MTD 100, a ranking of the largest independent tire dealerships in the United States, according to store count — plus the number of dealerships that sell them and the number of locations that sell each brand.

BRANDS LISTED ON 2024 MTD 100 2024 RANKING

BRAND

DEALERSHIPS/ LOCATIONS

2023 RANKING

1

Michelin

87/9,032

1

2

Bridgestone

77/7,512

3

3

Continental

74/7,518

3

4

Goodyear

72/7,908

6

5

BFGoodrich

70/7,873

2

6

Firestone

68/6,837

7

7

Uniroyal

63/6,662

5

8

Cooper

62/7,882

10

9

General

59/7,743

8

9

Yokohama

59/7,577

9

RANKING

11

Hankook

54/7,949

11

1

Continental

20/1,612

12

Falken

43/5,026

13

2

General

17/1,024

13

Toyo

40/4,054

12

3

Firestone

15/1,374

14

Pirelli

39/6,056

13

3

Michelin

15/1,270

15

Dunlop

34/6,329

13

3

Yokohama

15/1,058

16

Kumho

33/4,151

16

6

Bridgestone

14/1,351

17

Kelly

30/4,339

17

7

Goodyear

12/692

18

Nexen

30/3,528

18

8

BFGoodrich

11/554

19

Sumitomo

25/2,149

19

9

Roadmaster

10/482

20

Nitto

22/2,382

20

10

Hankook

9/916

34

2501MTD_34-35_FACTS_BrandDistribution.indd 34

COMMERCIALLY AVAILABLE

Here’s a look at the most often-mentioned brands on MTD’s 2024 U.S. Top 25 Commercial Tire Dealers list, published this past October. Both pure commercial and hybrid commercial/ retail locations, as provided by commercial tire dealerships who responded to MTD’s request for information, are listed.

2024 COMMERCIAL TIRE BRAND DISTRIBUTION BRAND

DEALERSHIPS/LOCATIONS

MTD January 2025

1/13/25 12:05 PM

2501MT

2501MTD_34-35_FACTS_BrandDistribution.indd 35 2501MTD_NokianTyres.indd 1

1/13/25 12:05 PM 1/6/25 9:02 AM

Tire sizes

Large and still in charge SIZES ARE NOT GOING BACKWARDS

P

assenger and light truck tires are getting bigger all the time. Looking at available passenger car tire sizes, based on rim diameter, one new 17-inch size, three new 19-inch sizes, one new 20-inch size and one new 22-inch size joined the P-metric segment during 2024. The total number of P-metric sizes now available now equals 399, up from 393 in 2023.

Available Passenger Tire Sizes by Rim Diameter 12-inch: 1

13-inch: 14

14-inch: 26

15-inch: 55

16-inch: 61

17-inch: 66

18-inch: 70

19-inch: 33

20-inch: 41

21-inch: 7

22-inch: 15

23-inch: 2

24-inch: 7

26-inch: 1

Source: Tire & Rim Association

Most Popular Replacement Passenger Tire Sizes RANK

SIZE

% of total

1

225/65R17

5.9%

2

205/55R16

3.9%

3

215/55R17

3.5%

4

235/60R18

2.6%

5

195/65R15

2.2%

6

275/55R20

2.1%

7

235/45R18

2.1%

8

215/60R16

2.1%

9

245/60R18

1.9%

10

225/60R17

1.9%

Source: USTMA

The LT-metric segment gained five sizes in 2024, including two new 16-inch sizes, one new 18-inch size, one new 20-inch size and one new 26-inch size.

That’s 203 sizes in total, up from 198 the previous year.

Available LT-Metric Tire Sizes by Rim Diameter 14-inch: 7

15-inch: 20

16-inch: 40

17-inch: 33

18-inch: 36

19-inch: 3

20-inch: 27

22-inch: 22

24-inch: 11

26-inch: 4

Source: Tire & Rim Association

The LT high-flotation segment gained one new 17-inch size, one new 18-inch size and one new 24-inch size during 2024, for a current total of 117 sizes.

Available LT High-Flotation Tire Sizes By Rim Diameter 14-inch: 2

15-inch: 22

16-inch: 2

17-inch: 23

18-inch: 19

20-inch: 24

22-inch: 9

24-inch: 11

26-inch: 3

28-inch: 2

Source: Tire & Rim Association

OE AND REPLACEMENT TRENDS

Seventeen-inch and 18-inch sizes dominate the “top 10” list of passenger tire sizes in the replacement channel for a combined number of six. There are two 16-inch sizes in the current “top 10,” as well as one 20-inch size (275/55R20) and one 15-inch size, the stalwart, hardworking 195/65R15.

36

2501MTD_36-37_FACTS_TireSizes.indd 36

Most Popular Replacement LT Tire Sizes

As a whole, the “top 10” replacement light truck tire sizes make up a bigger percentage of the available LT-metric size set (57.7%) than last year (55.6%.)

Size 235/65R16C moved up two spots from 2023 and now accounts for 4.6% of the available segment, up from 3.7% in 2023, which underscores the growing demand for “C-type” tires for last-mile delivery van and other applications.

RANK

SIZE

% of total

20 tops the list Most Popular OE Passenger Tire Sizes

Nowhere is the move toward bigger sizes more prominent than in the original equipment (OE) channel. There are one 22-inch size, two 20-inch sizes, three 19-inch sizes and three 18-inch sizes in the “top 10” list of OE passenger tire sizes. The smallest?

Size 225/65R17, which makes up 3.5% of the available segment.

RANK

SIZE

% of total

1

275/60R20

6.4%

2

235/60R18

4.2%

3

235/45R18

4.0%

4

225/65R17

3.5%

5

235/55R19

3.4%

6

225/60R18

2.9%

7

235/40R19

2.5%

8

255/50R20

2.5%

9

255/45R19

2.4%

10

275/50R22

2.3%

Source: USTMA

Most Popular OE Light Truck Tire Sizes

Again, underscoring the growing demand for “C-type” tires, size 235/65R16C jumped from number eight on last year’s list to the second spot currently. And LT235/80R17 has cracked the “top 10” list of OE light truck tire sizes.

1

LT265/70R17

8.5%

2

LT275/70R18

8.4%

3

LT245/75R16

7.6%

4

LT225/75R16

6.7%

5

LT245/75R17

6.4%

6

235/65R16C

4.6%

7

LT275/65R20

4.1%

4

LT285/70R17

8.7%

8

LT235/80R17

3.9%

5

LT315/70R17

8.6%

9

LT275/65R18

3.8%

6

LT275/65R20

7.4%

10

LT285/70R17

3.7%

Source: USTMA

RANK 1

SIZE LT275/70R18

% of total 14.0%

2

235/65R16C

13.3%

3

LT245/75R17

11.5%

7

LT225/75R16

6.8%

8

LT265/70R17

5.9%

9

LT245/75R16

4.4%

10

LT235/80R17

3.2%

Source: USTMA

MTD January 2025

1/29/25 8:51 AM

2501MT

@COSMOTIRES 2501MTD_36-37_FACTS_TireSizes.indd 37 2501MTD_TireGroupIntl.indd 1

CONTACT US: 1.833.KOOL.KAT

COSMOTIRES.COM 1/13/25 12:05 PM 1/6/25 9:04 AM

Tire pricing

On the way down?

CONSUMERS SOUGHT BALANCE AS TIRE PRICES DECLINED

A

ccording to JP Brooks, chief revenue officer for Duluth, Minn.-based Fitment Group, which analyzes millions of consumer tire prices advertised by online retailers, large chains and independent tire retailers, 2024 was marked by “the first measurable decline in advertised tire prices since the inflationary surge that followed the COVID-19 pandemic.”

Brooks says “the initial price drops (last) year occurred in tier-three and tier-four tire brands. Sellout data indicates that consumers increasingly opted for these lower-priced options to manage their budgets amid rising costs for most consumer goods.

Shoppers have been prioritizing value, seeking to maximize their purchasing power wherever possible.

“Tier-one tire pricing saw an increase at the start of 2024, but began to stabilize as the year progressed into the fourth quarter. By year-end, tier-one prices had risen slightly. However, the increase closely mirrored the inflation rate, making pricing relatively stable when adjusted for inflation.

“Meanwhile, tier-two and, increasingly, tier-three tires, have emerged as the ‘sweet spot’ for consumers. These tiers offer a mix of affordability and performance, with some price variation depending on specific brands. Sellout data from 2024 underscores this trend, showing that tier-two and tier-three options often hit the optimal balance of value and performance for budget-conscious buyers.

“As we look ahead to 2025, several uncertainties remain,” says Brooks. These include a new presidential administration in Washington D.C., the possibility of more tariffs imposed on imported tires, ongoing concerns about the cost of goods and more.

2024 AVERAGE ADVERTISED TIRE PRICES IN THE U.S. MAJOR BRAND

LOW-COST BRAND

OVERALL

195/6516

$148.31

$74.01

$117.75

205/55R16

$164.48

$87.94

$142.79

SIZE

215/60R16

$153.86

$93.35

$132.52

215/55R17

$194.46

$100.26

$161.35

225/60R17

$195.16

$112.49

$170.79

225/65R17

$198.93

$113.05

$175.42

235/60R18

$245.94

$129.22

$215.47

245/60R18

$245.06

$143.63

$212.12

275/55R20

$262.19

$169.73

$250.38

LT225/75R16

$231.50

$136.68

$196.51

LT245/75R16

$250.77

$147.63

$221.70

LT265/75R16

$264.16

$176.93

$266.21

LT235/80R17

$276.61

$166.25

$245.61

LT245/75R17

$277.07

$166.46

$243.83

LT265/70R17

$286.25

$186.01

$266.21

LT285/70R17

$309.41

$212.17

$304.60

LT275/65R18

$302.32

$212.32

$295.95

LT275/70R18

$306.16

$201.63

$300.51

Source: Fitment Group

REGION

OPENING

VALUE

BETTER

BEST

WINTER

East North Central

$197.17

$237.16

$274.78

$290.37

$256.22

East South Central

$202.97

$238.14

$269.90

$288.76

$258.64

Middle Atlantic

$174.77

$233.06

$271.10

$296.72

$239.44

Mountain

$191.53

$244.76

$278.83

$290.51

$248.14

New England

$176.27

$245.51

$280.05

$307.77

$268.65

Pacific

$193.75

$243.97

$277.29

$291.93

$256.25

South Atlantic

$178.90

$235.28

$269.23

$289.48

$253.63

West North Central

$185.57

$237.65

$272.17

$291.24

$252.93

West South Central

$190.10

$237.50

$268.32

$286.93

$254.03

Image: arthead | 740282030 | Adobe Stock

2024 PRICING BY REGION (LT265/70R17)

Source: Fitment Group

38

2501MTD_38-39_FACTS_TirePricing.indd 38

MTD January 2025

1/13/25 12:05 PM

WHAT’S ONLINE?

Here’s a snapshot of online tire pricing offered by randomly selected websites for two different tires: the Hankook Kinergy ST H735, a touring all-season tire, and the Nitto Recon Grappler A/T, which is available in a number of LT-metric sizes.

2024 ONLINE TIRE PRICING

Image: arthead | 740282030 | Adobe Stock

HANKOOK KINERGY ST H735 (225/65R17)

WEBSITE

PRICE

Amazon.com

$122.50

Americantiredepot.com

$142.99

Belletire.com

$143.00

Bigbrandtire.com

$142.99

WEBSITE

PRICE

Bigotires.com

$158.99

Amazon.com

$279.00

Burtbrothers.com

$137.99

Belletire.com

$275.00

Cjtire.com

$149.99

Bigchieftire.com

$270.99

Discounttirecenters.com

$137.99

Blackstire.com

$275.67

Flynnstire.com

$157.99

Daytontireinc.com

$277.99

Grahamtire.com

$138.95

Discounttirecenters.com

$270.00

Grismertire.com

$134.99

Jensentireandauto.com

$270.00

Mavistire.com

$137.99

Mavistire.com

$270.00

Ntb.com

$137.99

Midas.com

$347.99

Quicklane.com

$173.00

Ntb.com

$270.00

Simpletire.com

$137.99

Quicklane.com

$284.95

Tireagent.com

$149.49

Simpletire.com

$270.00

Tirebuyer.com

$137.99

Tireagent.com

$270.00

Tirediscounters.com

$161.00

Tirebuyer.com

$270.00

Tirekingdom.com

$137.99

Tirerack.com

$270.00

Tirerack.com

$137.99

Tires.com

$275.00

Tires.com

$143.00

Townfair.com

$272.00

Vipauto.com

$147.99

Vipauto.com

$288.99

Source: Fitment Group

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

2501MTD_38-39_FACTS_TirePricing.indd 39

NITTO RECON GRAPPLER A/T (LT265/70R17)

Source: Fitment Group

39

1/13/25 12:05 PM

Commercial tire market

‘Stability’ was the word in 2024 MEANWHILE, TIER-THREE BRANDS CONTINUED TO GAIN ACCEPTANCE

U

nlike the replacement passenger and light truck tire segments, the commercial medium truck tire segment showed an increase in replacement channel shipments — albeit a modest one — during 2024, according to MTD estimates.

Commercial tire dealers report that the fi rst half of the year was marked by an inf lux of Thailand-manufactured medium truck tire imports as distributors and dealers tried to get ahead of tariffs imposed by the International Trade Commission.

Thailand exported an estimated 7.2 million TBR tires to the United States in 2024, up 4% from the previous year and 4.3 million more units than Vietnam, the second-largest exporter of TBR tires to the U.S. At the sellout level, a high-level executive at one of the largest commercial truck tire dealerships in the U.S. described 2024 as being “stable” in both TBR tire supply and pricing.

Several commercial tire dealers also cited the growing customer acceptance of what they call “tier-three” medium truck tires as a major trend that played out over the course of the year.

This helped facilitate a decline in medium truck tire retread production, which dropped to an estimated 15 million units during 2024.

2024 MEDIUM TRUCK TIRE MARKET SHARE BY BRAND

2024 U.S. AG TIRE MARKET SHARE (RADIAL REAR REPLACEMENT)

BRAND

(based on an estimated 21.2 million units)

(based on an estimated 291,280 units)

2024 SHARE

BRAND

2024 SHARE

Bridgestone

14.0%

BKT

28.0%

Michelin

13.5%

Firestone

25.5%

Goodyear

8.5%

Michelin

13.0%

Yokohama

8.5%

Goodyear

11.0%

Continental

8.0%

Alliance

9.0%

Firestone

7.5%

Titan

4.5%

Double Coin

5.5%

Ascenso

4.0%

Hankook

4.0%

CEAT

2.5%

Toyo

3.5%

Trelleborg

2.0%

Falken

2.5%

Others

0.5%

Sailun

2.0%

Fortune

1.5%

Zenna

1.5%

General

1.0%

Gladiator

1.0%

Prinx

1.0%

Roadmaster

1.0%

Westlake

1.0%

Others

14.5%

2024 U.S. RETREADED TRUCK TIRE MARKET SHARE

(based on an estimated 15 million units)

5.5%

3.5% 1%

20%

46% Image: arthead | 1112915533 | Adobe Stock

24% ■ Bandag ■ Michelin/Oliver ■ Goodyear ■ Vipal/Marangoni ■ Continental ■ Others

40

2501MTD_40-41_FACTS_ComTireMarket.indd 40

MTD January 2025

1/13/25 12:05 PM

2501MT

TIRES THAT WORK AS HARD AS YOU DO 70 years of agricultural tire innovation and partnership in the field

RE

Image: arthead | 1112915533 | Adobe Stock

E

www.yokohama-atg.com 800-343-3276 |

@Alliancetires |

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@alliance.tires

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Plant capacities

Tiremakers Continued to Invest in Plants AND ONE MANUFACTURER CLOSED A FACTORY

O

n the manufacturing front, 2024 was a year of substantial investment in the United States, Canada and Mexico— and in the case of one major tire manufacturer, a major divestment.

In November, Sumitomo Rubber North America Inc. (SRNA) closed its consumer, TBR and motorcycle tire production facility in Buffalo, N.Y., a plant it had taken over from Goodyear Tire & Rubber Co. in 2015.

At the same time, Sumitomo Rubber Industries Ltd. (SRI), SRNA’s parent company, announced the dissolution of its Sumitomo Rubber USA LLC subsidiary.

In a statement issued on Nov. 7, SRI said that the “sale of tires produced at the (Buffalo) facility could not be profitable.”

SRNA’s Buffalo plant was one of the oldest still-operating tire factories in the U.S., dating back to 1923.

It had the capacity to build around 7,300 passenger tires, 2,700 light truck tires and 2,300 TBR tires per day, according to MTD research.

Other tire manufacturers double-downed on investment in production facilities and capabilities.

Three — Yokohama Tire Corp., Zhongce Rubber Group. Co. Ltd. (ZC Rubber) and Sailun Tire Americas (STA) — broke ground on future plants during 2024, all in Mexico.

Yokohama’s plant in Saltillo, Mexico, represents a capital investment of $380 million and is scheduled to begin production in 2027 with a planned, annual output of five million units.

Construction also is underway at ZC Rubber’s new plant in Mexico, which represents an investment of $550 million and will be located just 150 miles from the U.S. border.

ZC Rubber officials say the factory will be up and running by the end of next year and will initially have an annual capacity 42

2501MTD_42-43_FACTS_PlantCapacities.indd 42

NORTH AMERICAN TIRE PLANT CAPACITIES AS OF JAN. 1, 2024 (IN THOUSANDS OF UNITS)

Company / Location / Year Constructed

NonUnion

ISO Passenger Light truck Truck Certified per day per day per day

Others per day

Total

Bridgestone Americas Inc. Aiken, S.C., 2013

0

0

0

0.04

0.04

La Vergne, Tenn., 1972

x x

0

0

3.1

0

3.1

Warren County, Tenn., 1990

x

0

0

9.4

0

9.4

Bloomington, Ill., 1965

x

0

0

0

0.3

0.3

Des Moines, Iowa, 1945

x

0

0

0

1.9

1.9

21.5

0

0

0

21.5

Wilson City, N.C., 1974

x

x

Aiken County, S.C., 1999

x

x

29

6

0

0

35

Joliette, Quebec, Canada, 1966

x

9.2

9.1

0

0

18.3

Monterrey, Mexico, 2007

x

6.6

0

0

0

6.6

Cuernavaca, Mexico, 1980

x

15.5

5.6

0

0

21.1

81.8

20.7

12.5

2.24

117.24

12.5

1

0

0

13.5

30

4

10.3

0

44.3

Clinton, Miss., 2020

0

0

2.8

0

2.8

Total:

42.5

5

13.1

0

60.6

15

0

0

0

15

15

0

0

0

15

Total:

Continental Tire the Americas LLC Sumter, S.C., 2013

x

Mount Vernon, Ill., 1973, 1988

x

x

Giti Tire (USA) Ltd. Richburg, S.C., 2017

x

x

Total:

Goodyear Tire & Rubber Co. Danville, Va., 1966

x

0

0

11

2

13

Fayetteville, N.C., 1969

x

31

10.5

0

0

41.5

x

7

16

0

0

23

x

64.5

0

0

0

64.5

Texarkana, Ark., 1964

x

24

8

0

0

32

Topeka, Kan., 1945

x

0

0.5

5.5

0.1

6.1

x

42

0

0

0

42

x

0

0

0

13

13

x

19

0

0

0

19

16.4

0

0

0

16.4

203.9

35

16.5

15.1

270.5

12.9

1

0

0

13.9

12.9

1

0

0

13.9

13

0

0

0

13

13

0

0

0

13

37.5

3.4

0

0

40.9

0

9.5

0

0

9.5

25.5

10.7

0

0

36.2

36.7

0

0

0

36.7

8.7

0

0

0

8.7

0

0

0

0.07

0.07

Findlay, Ohio, 1917 Lawton, Okla., 1978

Tupelo, Miss, 1984/1960

x

x

Medicine Hat, Alberta, Canada, 1960 Napanee, Ontario, Canada, 1990

x

San Luis Potosi, Mexico 2017

x

Total:

Hankook Tire America Corp.

Clarksville, Tenn., 2016

x

x

Total:

Kumho Tire Co. Inc. Macon, Ga., 2015

x

Total:

Michelin North America Inc. Ardmore, Okla., 1969

x

Dothan, Ala., 1979

x

x

Fort Wayne, Ind., 1961 Greenville, S.C., 1975

x

Greenville, S.C. (C3M), 1996

x

Piedmont, S.C. (Tweel), 2014

x

x

MTD January 2025

1/13/25 12:05 PM

al

4

1

4

3

Company / Location / Year Constructed

NonUnion

Lexington, S.C., 1981

x

Lexington, S.C., 1998

x

Spartanburg, S.C., 1978 Starr, S.C., 2013

ISO Passenger Light truck Truck Certified per day per day per day

Others per day

Total

26.5

0

0

0

26.5

0

0

0

0.1

0.1

x

0

0

6.4

0

6.4

x

0

0

0

0.01

0.01

x

Tuscaloosa, Ala., 1945

19.7

5.5

0

0

25.2

Bridgewater, Nova Scotia, Canada, 1971

x

14.1

4

0

0

18.1

Granton, Nova Scotia, Canada, 1971

x

2.7

0

0

0

2.7

Waterville, Nova Scotia, Canada, 1982

x

0

0

7

0.5

7.5

Queretaro, Mexico, 2002

x

6

0

0

0

6

4

0.4

0

0

4.4

181.4

33.5

13.4

0.68

228.98

7

3

0

0

10

7

3

0

0

10

1.2

Leon, Mexico, 2018 Total:

Nokian Tyres plc Dayton, Tenn, 2019

x

x

Total:

Pirelli Tire North America Inc. Rome, Ga., (MIRS), 2002

x

x

1.2

0

0

0

5

Guanajuato, Mexico 2011, 2018

x

x

26

0

0

0

26

5

Total:

27.2

0

0

0

27.2

9

ONGOING INVESTMENTS

3

Specialty Tires of America Inc.

6

Indiana, Pa., 1915

x

x

0.92

0.18

0.05

2.35

3.5

1

Unicoi, Tenn., 1997

x

x

0.3

0.5

0.05

0.25

1.1

24

Total:

1.22

0.68

0.1

2.6

4.6

Titan Tire Corp.

5

Bryan, Ohio, 1967

x

0

0

0

0.33

0.33

3

Des Moines, Iowa, 1943

x

0

0

0

11.25

11.25

8

Freeport, Ill., 1964

x

6

0

0

0

8.1

8.1

Jackson, Tenn., 2009*

x

x

0

0

0

26

26

Clinton, Tenn. (Dico), 1974*

x

x

0

0

0

15

15

0

0

0

60.68

60.68

40

6.5

0

0

46.5

40

6.5

0

0

46.5

5

Total:

5

Toyo Tire North America Mfg Inc. White, Ga., 2005

3

Total:

5

Yokohama Tire Corp.

3

5

2

1

2

3

West Point, Miss., 2015

3

9

5

2

7

7

7

0

3

0

3

1.1

0

0

26.8 0.07

0

0

0.07

0

0

0.5

0.5

Total:

25.7

1.1

3

0.57

30.37

0

14.2

3.8

0

18

0

14.2

3.8

0

18

2.14

San Luis Potosi, Mexico

3

0 25.7 0

4

9

x

0

Grupo Carso/Euzkadi (Continental AG)

9

x

x

Charles City, Iowa, 2012*

9

.5

x

Salem, Va., 1968 Spartanburg, S.C., 2015*

x

x

Total:

JK Tyre & Industries (formerly CIA Hulera Tornel) Mexico City, Mexico

0

1

1

0.14

Tultitlan, Mexico

7

1.5

0.5

0

9

Tacuba, Mexico

8

2.5

0

0

10.5

Total:

15

5

1.5

0.14

21.64

10

7.2

2.8

0

20

10

7.2

2.8

0

20

739.47

Corporacion de Occidente SA de CV Guadalajara, Mexico, 2005

x

Total:

x

532.12

87.38

51.6

68.37

Canadian Totals

45

13.1

7

13.5

78.6

Mexican Totals

99.5

32.4

8.1

0.14

140.14

Total:

676.62

132.88

66.7

82.01

958.21

U.S. Totals

*Notes former Carlstar Group LLC factory

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

2501MTD_42-43_FACTS_PlantCapacities.indd 43

of 13.5 million passenger tires, plus substantial OTR tire production.

When fully operational, STA’s factory in Mexico, a $240 million joint venture with Sailun Singapore, will manufacture six million “semi-steel radial” tires a year, with the possibility of later producing an additional 1.65 million units.

Pirelli Tire North America Inc. also has been particularly aggressive in expanding in Mexico.

In September 2021, its parent company, Pirelli & Cie SpA, approved a $36 million investment in the firm’s Guanajuato plant to boost annual production capacity at the facility to 7.2 million units.

Two years ago, Pirelli announced it would invest an additional $15 million in the factory.

At the start of 2023, Michelin North America Inc. announced plans to invest around $220 million at three of its plants in Nova Scotia.

The first phase of the project, a $98.3 million expansion of the company’s Bridgewater, Nova Scotia plant, “is on track, with the first tire expected to be produced early in 2025,” a Michelin spokesperson recently told MTD. Construction at Bridgestone Americas Inc.’s TBR tire plant in Warren County, Tenn., “is still on track with the original schedule to facilitate the new technology development capabilities,” according to Bridgestone officials.

The $550 million investment will enable Bridgestone to manufacture TBR tires equipped with radio frequency identification tags.

However, “full start of (additional) production has been postponed from the original plan due to market conditions, which we continue to monitor closely,” a Bridgestone spoksperson told MTD. Hankook Tire America Corp. says it is “currently about halfway through the construction process” at its plant in Clarksville, Tenn. “The project remains on track,” note Hankook officials.

In August 2021, Hankook announced it would invest $1.6 billion at the plant to double its passenger and light truck tire production to 11 million units, while also adding TBR tire production.

Goodyear is investing more than $418 million at its consumer tire plant in Napanee, Ontario.

43

1/13/25 12:05 PM

Automotive service

DELAY TACTICS

VEHICLE OWNERS CONTINUED TO PUT OFF REPAIRS

Estimated U.S. Light Vehicle Delayed Maintenance

25%

DM Dollar Value

$40 $35 $30

20%

$25

15%

$20 $15

10%

$10

5% 0%

$5 2016

2017

2018

2019

2020

2021

2022

2023

$0

Source: IMR Inc./Endeavor Business Intelligence

steadily increased since 2018. This trajectory, however, has reversed over the last two years, with average dollars spent declining by 10.9% in 2023 and trending flat in 2024.

“The stalling of dollars spent, while the rise in delayed maintenance dollars continues, could be signaling consumer trouble,” say IMR Inc//Endeavor Business Intelligence officials.

Which of the following automotive services do you offer?

SERVICES DEALERS OFFER

Despite deferred maintenance trends, independent tire dealers expect a significant amount of their revenue to come from auto service. Dealers who responded to MTD’s 2024 Tire Dealer Automotive Service Study said they expect that an average of 44% of their total sales will have come from auto service during 2024.

The same respondents told MTD that they expected that an average of 48% of their total profits would come from auto service during the year. (The poll was conducted before 2024 ended.)

To the right is a detailed breakdown of the auto services they offer and what percentage of MTD survey respondents provide them.

Delayed Maintenance

Billions

O

ngoing uncertainty around the economy means that consumers continue to delay vehicle maintenance. According to data that was recently presented by IMR Inc./Endeavor Business Intelligence, a division of Endeavor Business Media, which owns MTD, the estimated value of delayed auto maintenance has increased to more than $40 billion — an 85% jump since the early days of the COVID-19 pandemic in 2020.

This far surpasses pre-pandemic levels, when the estimated value of delayed maintenance totaled around $5 billion between 2016 and 2019.

IMR Inc./Endeavor Business Intelligence also reports that average dollars spent on maintenance per vehicle has

$42.7 $45

30%

ADAS 19% Air Conditioning Alignment Battery/Electrical Bearings/Seals Brakes Chassis/Suspension Chemicals, injector cleaners, etc.

Cooling Systems Electronic Diagnosis Engine Repair/Diagnostics/Tune-ups Exhaust Systems Ignition and Spark Plug Mounting/Balancing Oil/Lubrication Shocks/Struts TPMS Visibility (wipers)

0%

20%

63% 83% 83% 86% 87% 83%

55%

55%

62% 66%

75%

70% 87% 87% 85%

40%

60%

80%

96% 92% 100%

FIN

Source: MTD’s 2024 Tire Dealer Automotive Service Study

44

2501MTD_44-45_FACTS_AutoService.indd 44

MTD January 2025

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Mergers and acquisitions

M&A makes a big comeback ONE DEALERSHIP ACQUIRED 75-PLUS STORES IN 2024

A

fter a slower-than-normal 2023, the pace and number of tire dealership mergers and acquisitions picked up in 2024. In fact, the number of acquisitions that were publicly announced in 2024 exceeded the number of acquisitions listed in last year’s MTD Facts Issue.

By far, the most prolific acquirer of independent tire dealerships in 2024 was Gills Point S Tire & Auto. Headquartered in The Dalles, Ore., Gills Point S Tire & Auto has become a nationwide enterprise, having added more than 75 locations during the last 12 months.

Its biggest acquisition was the purchase of Peerless Tyre, one of the largest independent tire dealerships in the western United States, with 50 locations throughout Colorado, Kansas, Nebraska, New Mexico, South Dakota, Texas and Wyoming.

The western U.S. proved to be a hotspot for tire dealership M&A during 2024.

North Salt Lake, Utah-based Burt Brothers Tire & Service Inc. expanded through acquisition, as did Moorpark, Calif.-based Big Brand Tire & Service.

Bend, Ore.-based Les Schwab Tire Centers Inc. also made some key acquisitions.

Potosi, Mo.-based Purcell Tire & Rubber Co. made a major acquisition when it purchased Jack’s Tire and Oil Management Co. Inc., which was headquartered in Logan, Utah. The deal included 21 locations.

Sun Tire & Auto Service Inc., which is based in Mesa, Ariz., continued to pick up dealerships during 2024. Among other chains, Sun Tire & Auto Service acquired 33 Caliber Auto Care locations in Texas, plus a 24-store chain based in the Phoenix, Ariz., market.

In the Midwest, Discount Tire expanded its presence in the Chicago, Ill., market via the acquisition of Suburban Tire Auto Repair Centers, a six-store independent.

Further east, Norwell, Mass.-based Sullivan Tire Co. Inc. acquired Stratham Tire, a longtime independent that had seven stores, plus another dealership.

With interest rates declining, tire dealership M&A is expected to continue at a robust pace throughout 2025.

46

2501MTD_46-47_FACTS_M&A.indd 46

2024 U.S. TIRE DEALERSHIP MERGERS AND ACQUISITIONS # of outlets Location (s)

Buyer

Q Acquired

Leeds West Groups

1

Big O Tires store

1

Canor City, Colo.

Alma Tire Companies

1

Jerry’s Tire

4

Lake Odessa, Mich.

Straightaway Tire & Auto

1

Maple Grove Auto Service

1

Maple Grove, Minn.

Straightaway Tire & Auto

1

Warzecha Auto Works

1

Zimmerman, Minn.

Gills Point S Tire & Auto

1

1

Glendive, Mont.

Gills Point S Tire & Auto

1

3

Montana

Gills Point S Tire & Auto

1

Berg Tire Inc. Rolling Rubber Point S Tire & Auto Service Goodyear Auto Service store

1

Bend, Ore.

Sun Auto Tire & Service Inc.

1

Boyd’s Tire & Service

7

Central Ohio

Wonderland Tire Co.

1

Carter Tire & Automotive

1

Elkhart, Ind.

VIP Inc. dba VIP Tires & Service

1

Joe’s Tire Shop

1

Waterbury, Conn.

Burt Brothers Tire & Service Inc.

1

JP Midland Tire Pros

1

Roy, Utah

Sun Auto Tire & Service Inc.

2

Carrollton Complete Automotive

1

Carrollton, Texas

Blacks Tire Service Inc.

2

A-Plus Auto Sales and Service

1

Longs, S.C.

Discount Tire

2

Suburban Tire Auto Repair Centers

6

Chicago, Ill., area

Sullivan Tire Co. Inc.

2

Stratham Tire

7

Maine and New Hampshire

Gills Point S Tire & Auto

2

Murray Point S Tire & Auto

1

Murray, Utah

Gills Point S Tire & Auto

2

Bountiful Point S Tire & Auto

1

Bountiful, Utah

Gills Point S Tire & Auto

2

J&J Point S

1

Helena, Mont.

Gills Point S Tire & Auto

2

Capital City Point S

1

Helena, Mont.

Gills Point S Tire & Auto

2

Fox’s Point S Tire

1

Great Falls, Mont.

Gills Point S Tire & Auto

2

Jerry Noble Point S

1

Great Falls, Mont.

Gills Point S Tire & Auto

2

Merrimack Auto Center

2

Nashua and Merrimack, N.H.

Gills Point S Tire & Auto

2

Jim Bacon Tire Pros

1

Beaverton, Ore.

Goodturn Tire & Auto

2

Collier Car Care

1

Naples, Fla.

Goodturn Tire & Auto

2

Adelphia Auto and Tire

1

Lighthouse Point, Fla.

Goodturn Tire & Auto

2

Scott’s Tire and Golden Gate Tire

2

Port St. Lucie and Stuart, Fla.

Goodturn Tire & Auto

2

Detroit Garage

10

Michigan

Goodturn Tire & Auto

2

Great Bear Automotive

1

Weston, Fla.

Leeds West Groups

2

Big O Tires locations

6

Texas

Les Schwab Tire Centers Inc.

2

CMC Tire

11

Utah, Nevada and Colorado

Sun Auto Tire & Service Inc.

2

Caliber Auto Care

33

Texas

Scott’s U-Save Tires & Auto Repair

2

Knight Automotive

1

Crown Point, Ind.

Burt Brothers Tire & Service Inc.

2

The Tire Company

3

Cedar City, Utah

Sun Auto Tire & Service Inc.

2

Friendly Car Care

1

Austin, Texas

Wilks Tire & Battery Service

3

Doyle Hayes Tire Service

1

Dalton, Ga.

Tire Group International LLC

3

Avaun Tire Supply

1

Portland, Ore.

Telle Tire & Auto Centers

3

Riechers Tire & Auto

2

Washington

Sun Auto Tire & Service Inc.

3

Cecil & Sons Discount Tire

3

Tulsa, Okla.

Purcell Tire & Rubber Co.

3

Jack’s Tire and Oil Management Co. Inc.

21

Utah

K&M Tire Inc.

3

K&W Tire Inc.

6

Pennsylvania, Massachusetts, New Hampshire and Connecticut

VIP Inc. dba VIP Tires & Service

3

Center Automotive

1

Needham, Mass.

Big Brand Tire & Service

3

Tires to You

7

Austin, Texas

Dobbs Tire & Auto Centers Inc.

4

Automotive Super Center

7

Texas

Gills Point S Tire & Auto Service

4

Peerless Tyre Co. dba Peerless Tires 4 Less

50

Colorado, Kansas, Nebraska, New Mexico, South Dakota, Texas and Wyoming

Gills Point S Tire & Auto Service

4

Bruneel Point S Tire & Auto Service

13

Idaho and Oregon

Sun Auto Tire & Service Inc.

4

Tire Max locations

4

Greensboro, N.C.

Burt Brothers Tire & Service

4

Tire Buster’s Supreme Auto Care

2

Payson, Utah, and American Fork, Utah

Big Brand Tire & Service Inc.

4

Robertson Tire Co. Inc.

14

Oklahoma

Sullivan Tire Co. Inc.

4

Country Tire

1

Rochester, N.H.

Les Schwab Tire Centers Inc.

4

Four States Tire and Service

4

Colorado and New Mexico

Sun Auto Tire & Service Inc.

4

Greulich’s Auto Repair

24

Phoenix, Ariz.

Sun Auto Tire & Service Inc.

4

Plaza Tire Service

3

Arkansas, Illinois and Indiana

MTD January 2025

1/13/25 12:05 PM

2407MT

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2501MTD_46-47_FACTS_M&A.indd 47 2407MTD_AmericanOmni.indd 1

1/13/25 12:05 PM 6/13/24 10:29 AM

Biggest dealers

Critical mass

A LOOK AT THE LARGEST 10 LARGEST INDEPENDENT TIRE DEALERSHIPS # OF TIRE DEALERSHIPS RANK DEALERSHIP HEADQUARTERS TOP OFFICER(S) LOCATIONS 1 Mavis Tire Express Services Corp. Millwood, N.Y. Stephen and David Sorbaro, co-CEOs 2,115 AND RETREADERS 2 Monro Inc. Rochester, N.Y. Michael Broderick, CEO 1,296

E

ach July, MTD — through its MTD 100 — ranks the largest independent tire dealerships in the United States, based on store count. (MTD defines “independent tire dealerships” as dealerships that are not owned by tire manufacturers.)

Each October, MTD ranks the 25 largest commercial tire dealerships based on MTD’s estimate of their commercial sales.

To qualify for consideration, a dealership must sell medium truck tires, have at least one retread plant and provide 24/7 emergency roadside service.

In April, MTD ranks the top 50 retreaders in the U.S., including tire company-owned retreading operations, based on the average estimated amount of tread rubber used by each.

and president

3

Discount Tire

Scottsdale, Ariz.

Dean Muglia, CEO

1,206

4

Les Schwab Tire Centers Inc.

Bend, Ore.

MIke Broberg, CEO

491

5

Sun Auto Tire & Service Inc.

Mesa, Ariz.

Tony Puckett, CEO

474

6

Best-One Tire Group

Monroe, Ind.

Larry and Mark Zurcher, owners

243

7

Tire Discounters Inc.

Cincinnati, Ohio

Chip Wood, chairman

214

8

Southern Tire Mart LLC

Columbia, Miss.

Thomas and James Duff, owners

208

9

Big Brand Tire & Service

Moorpark, Calif.

Joe Buscaglia, CEO

207

10

Pomp’s Tire Service Inc.

Green Bay, Wis.

Jim Wochinske, CEO

193

As of the July 2024 publication of the 2024 MTD 100

10 LARGEST COMMERCIAL TIRE DEALERSHIPS RANK DEALERSHIP

HEADQUARTERS

TOP OFFICER(S)

1

Southern Tire Mart LLC

Columbia, Miss.

Thomas and James Duff, owners

2

Best-One Tire Group

Monroe, Ind.

Larry and Mark Zurcher, owners

3

Pomp’s Tire Service Inc.

Green Bay, Wis.

Jim Wochinske, CEO

4

Snider Tire Inc.

Fort Mill, S.C.

Marty Herndon, chairman and CEO

5

McCarthy Tire Service Co. Inc.

Wilkes-Barre, Pa.

John McCarthy Jr., president

6

Les Schwab Tire Centers Inc.

Bend, Ore.

Mike Broberg, CEO

7

Service Tire Truck Centers Inc.

Bethlehem, Pa.

Walter Dealtrey Jr., CEO and president

8

Purcell Tire & Rubber Co.

Potosi, Mo.

Roger Lucas, CEO

9

Boulevard Tire Center

Deland, Fla.

Earl Colvard, president

10

Parkhouse Tire Inc.

Bell Gardens, Calif.

Jim Parkhouse, CEO

As of the October 2024 publication of MTD’s Top 25 Commercial Tire Dealers in the U.S. list

10 LARGEST RETREADERS IN THE U.S. RANK DEALERSHIP

HEADQUARTERS

TOP OFFICER(S)

# OF PLANTS

1

Southern Tire Mart LLC

Columbia, Miss.

Thomas and James Duff, owners

28

2

Goodyear Tire & Rubber Co.

Akron, Ohio

Mark Stewart, CEO

35

3

Pomp’s Tire Service Inc.

Green Bay, Wis.

Jim Wochinske, CEO

26

4

Best-One Tire Group

Monroe, Ind.

Larry and Mark Zurcher, owners

20

Fort Mill, S.C.

Marty Herndon, chairman and CEO

9

5

Snider Tire Inc.

6

Love’s Travel Stops & Country Stores Inc. Oklahoma City, Okla. Greg and Frank Love, co-CEOs

6

7

McCarthy Tire Service Co. Inc.

Wilkes-Barre, Pa.

John McCarthy Jr., president

13

8

Purcell Tire & Rubber Co.

Potosi, Mo.

Roger Lucas, CEO

5

9

Service Tire Truck Centers Inc.

Bethlehem, Pa.

Walter Dealtrey Jr., CEO and president

5

10

Bauer Built Inc.

Durand, Wis.

Jerry Bauer, chairman

6

As of the April 2024 publication of MTD’s Top 50 Retreaders in the U.S. list

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MTD January 2025

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Private equity

Private equity investment continues

A LOOK AT SOME OF THE BIG PLAYERS — AND WHAT THEY OWN

P

rivate equity investment in tire dealerships continues to increase. Here’s an up-close look at some of the private equity firms that own — or have some ownership stake in — several large tire dealerships.

BAYPINE LP

HEADQUARTERS: BOSTON, MASS. DEALERSHIP OWNED: MAVIS TIRE EXPRESS SERVICES CORP. OTHER HOLDINGS: Penn Foster Group (digital learning platform);

QualDerm Partners (dermatology management group); Polywood (outdoor furniture supplier)

MERITAGE GROUP LP

HEADQUARTERS: SAN FRANCISCO, CALIF. DEALERSHIP OWNED: LES SCHWAB TIRE CENTERS INC. OTHER HOLDINGS: Columbia Distributing (beverage distributor);

others

LEONARD GREEN & PARTNERS

HEADQUARTERS: LOS ANGELES, CALIF. DEALERSHIP OWNED: SUN AUTO TIRE & SERVICE INC. OTHER HOLDINGS (ALL CURRENT): 1 800 Contacts (contact lens

retailer); Advantage Solutions (sales and marketing solutions provider); AerSale Holdings (aftermarket aircraft components supplier); The Aspen Group (retail healthcare support service provider); Authentic Brands Group (intellectual property licensing); Caliber Collision (auto collision repair chain); Charter Next Generation (provider of specialty films for food and medical packaging); CHG Healthcare Services (healthcare staffing provider); Clarivate (global information services provider); The Container Store (specialty storage products retailer); Covergint (service-based systems provider); DuraServ (industrial overhead door and loading dock equipment maintenance); ECI (provider of enterprise planning software); Epiphany Dermatology (dermatology services); ExamWorks (independent medical examination provider); Eyemart Express (value-focused optical retailer); FineLine Technologies (supply chain tracking solutions provider); GeoStabilization International (provider of geohazard mitigation solutions); HUB (insurance broker); IMA (pharmaceutical processing/packaging machinery supplier); Insight Global (staffing services provider); IRIS (HR/payroll software solutions provider); Jetro Cash & Carry (food product wholesaler); Lakeshore (early childhood education products developer); Life Time (high-end fitness center operator); Mariner (wealth advisory service provider); MedVet (pet hospital network); Milan Hair Removal (laser hair removal service provider); Mindpath Health (outpatient behavioral health service provider); Mister Car Wash (nationwide car wash platform); Multi Plan (health plan cost management solutions provider); North American 50

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Partners in Anesthesia (anesthesia management services provider); OMNIA Partners (group purchasing provider serving state and local governments); Parts Town (food service equipment service provider); Patient Funding Alternatives (patient advocacy platform for Medicaid patients); PDC Brands (beauty and wellness product supplier); PlayCore (playground equipment manufacturer); Press Ganey (data and analytics service provider for hospitals); ProMach (supplier of packaging machinery solutions); Prometheus Group (software solutions provider); Propio (tech-enabled language services for medical industry); Pure Gym (largest fitness center chain in U.K.); Pye-Barker Fire & Safety (fire protection services provider); RedSail Technologies (workflow software solutions supplier); Service Logic (HVAC equipment maintenance and repair service provider); The Shade Store (custom window treatment provider); Stella Environmental Services (waste transfer station management company); Stepping Stones Group (staffing solutions for behavioral health service providers); Tecta America (commercial roofing services provider): TenCate (artificial turf solutions provider for sports industry); Troon Golf (golf club hospitality management services provider); Velvet Taco (restaurant chain); Veritext Legal Solutions (pre-trial deposition service provider); Visual Comfort & Co. (decorative lighting supplier); Vital Care (pharmacy franchisor); WCG (clinical trial solutions provider to healthcare industry); WellSky (provider of software solutions to healthcare companies); West Shore Home (direct-to-consumer remodeling service provider); The Wrench Group (provider of home plumbing, HVAC and electrical services); Zaxby’s (quick-service restaurant franchisor).

PERCHERON CAPITAL

HEADQUARTERS: SAN FRANCISCO, CALIF. DEALERSHIP OWNED: BIG BRAND TIRE & SERVICE OTHER HOLDINGS: Alloy Roofing (national roofing repair and

replacement platform); Animal Dermatology Group (pet dermatology service provider); Blue Cardinal Home Services Group (provider of HVAC, electrical and plumbing services); Caliber Carwash (chain of car washes); Lookout Pest Control; Right Restoration Partners (emergency restoration services provider); Vanterra Foundation Solutions (home foundation repair and basement waterproof solutions provider); Veritas Veterinary Partners (network of veterinary hospitals).

O2 INVESTMENT PARTNERS LP

HEADQUARTERS: BLOOMFIELD HILLS, MICH. DEALERSHIP OWNED: STRAIGHTAWAY TIRE & AUTO OTHER HOLDINGS (BOTH CURRENT AND FORMER): 4M Building Solu-

tions (cleaning and janitorial service provider); Alpha Precision Group (powder metal components manufacturer); Azureon swimming pool maintenance and building solutions provider); MTD January 2025

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Centex Construction (renovation service provider for property managers and owners); Denbright Dental Labs (provider of high-end dental products); EIS Holdings (supplier of environmental services); FCAH Aerospace (aftermarket aircraft parts distributor); Flip Electronics (electronic component distributor); Greco Aluminum Railings (balcony railing manufacturer); Harley Exteriors (provider of replacement window, door and gutter services); Mantis Innovation Group (facility improvement software provider); MHC Software (proprietary software solutions developer); Modular Devices (provider of modular medical imaging equipment labs); NTI Connect (fiber optic, wireless and network integration provider); ) O2 Specialty Manufacturing (custom valve and flow control component manufacturer); Orchestra (communications company); Packaging Concepts and Design (packaging solutions designer); SIB (cost reduction services provider); Silbond (specialty chemical producer); Stronghouse Solutions (roof replacement and repair service provider); unWired Broadband (wireless internet service provider); Vessco (supplier of wastewater technology to municipal markets).

AUDAX PRIVATE EQUITY

HEADQUARTERS: BOSTON, MASS. DEALERSHIP OWNED: DOBBS TIRE & AUTO CENTERS OTHER HOLDINGS (BOTH ACTIVE AND REALIZED): 48forty Solutions

(pallet management service provider); A&A Manufacturing (protective systems maker); A-D Technologies (duct, pipe and conduit manufacturer); AAMP Global (provider of automotive aftermarket electronics integration devices); Aavid Thermalloy (thermal management solutions maker); Accent Food Services (customized food services provider); Active Day (adult day care center network); Acuant (identity verification solutions supplier); Advanced Dermatology (physician practice management company); Affordable Interior Systems (office furniture maker); Alliance Ground International (air cargo handling services provider): AllOver Media (ad platform operator); Alltran (third-party debt collection service); Altasciences Clinial Research (contract research organization); APC Automotive Technologies (manufacturer of brakes, chassis and other automotive aftermarket components); API Heat Transfer (manufacturer of industrial heat exchangers); Arnold Magnetic Technologies (magnetic product supplier); Aspen Surgical Products (private brand surgical products supplier); Astrodyne TDI (manufacturer/distributor of AC/DC power supplies); Axia Women’s Health (healthcare service provider); Belmont Medical Technologies (fluid management solutions provider); BlueCat Networks (infrastructure software provider); Bridgeport Tank Trucks (fluid transport service provider); Broadcast Electronics (supplier of radio broadcast equipment); Cadence Education (child care center operator); Centerline (wireless network service solutions provider); Centric Parts (auto and truck aftermarket parts supplier); Chart Industries (cryogenic equipment supplier); Chartis (healthcare industry consulting service provider); Chesapeake IRB (review board services supplier); CIBT Global (travel document expeditor); Cinelease (motion-picture equipment rental service); Coast Crane Co. (distributor of cranes and personnel lifts); Colony Hardware Corp. (tool and equipment distributor); ColorMatrix (thermoplastic products liquid color and additive maker); CoolSys (HVAC installation and maintenance services provider); Corepoint Health (healthcare software provider); Cover-All (pre-engineered membrane building systems provider); Covercraft (provider of w w w . M o d e r n T i r e D e a l e r. c o m

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automobile covers); Cozzini Brothers (knife sharpening service provider); Curt Group (vehicle towing solutions provider); CW Advisors (investment advisory service); Data Intensity (cloud service provider); Denver Biomedical (medical device manufacturer and distributor); DISA Global Solutions (workplace testing and screening provider); Distribution International (distributor of industrial and marine industry insulation products); Doeren Mayhew (certified public accounting firm); Dynisco (plastics industry equipment manufacturer); EIS Inc. (electrical process materials fabricator); Elevate ENT Partners (physician practice management); Elgin Fastener Group (specialty fastener producer); Elgin Power and Separation Solutions (power distribution parts manufacturer); ELM (home building solutions provider); Endurance International Group (shared web hosting service provider); EnviroVac (cleaning and maintenance service provider); Ezurio (wireless connectivity provider); FDH Aero (aerospace parts distributor); Flashpoint (intelligence automation supplier); Flexstar Technology (data storage testing solutions provider); Flow Control Holdings (sanitary flow component provider); Gabriel Performance Products (specialty chemical producer); Gastro Health (digestive health treatment provider); GCG (wire and cable solutions distributor); GCX Healthcare Solutions (maker of health care equipment mobility solutions); and others.

GARNETT STATION PARTNERS

HEADQUARTERS: NEW YORK, N.Y. DEALERSHIP OWNED: GOODTURN TIRE & AUTO OTHER HOLDINGS (BOTH ACTIVE AND EXITED): Accident Care Alli-

ance (healthcare services provider); Authentic Restaurant Brands (portfolio of regional restaurant chains); Bristol Environmental (provider of environmental remediation services ): Carrolls Restaurant Group (restaurant franchisee); Checkers (restaurant chain); Fat Tuesday (specialty drink retailer); Firebirds Wood Fired Grill (restaurant chain); FirstRidge Service Partners (exterior home services provider); Flagstop Carwash (carwash platform); Kona Ice (mobile food and beverage franchisor); Heritage Funeral Homes (funeral home platform); Kneaders Bakery & Cafe (bakery/cafe chain); Maaco (automotive paint services provider); Mambo Seafood (restaurant chain); Massage Envy (spa chain); Mountainside Fitness (premium fitness center company); Out West Restaurant Group (restaurant franchisee): NPC International (restaurant franchisee); P.J. Whelihan’s Restaurant (restaurant chain); Ojos Locos Sports Cantina (restaurant chain operator); Planet Fitness UFP (largest Planet Fitness chain in U.S.); Pollo Tropical (electronic interconnect solutions provider); Primanti Bros (restaurant chain); Prime Vacations (vacation property manager); VIVE Collision (collision repair platform); Woofgang Bakery and Grooming (pet service franchisor); WOW Carwash (carwash chain); and others.

BESTIGE HOLDINGS

HEADQUARTERS: PARK CITY, UTAH DEALERSHIP OWNED: BURT BROTHERS TIRE & SERVICE INC. OTHER HOLDINGS (BOTH ACTIVE AND REALIZED): Animal Health Part-

ners (veterinary services provider); Compactor Rentals of America (waste compactor solutions provider); Intermountain Home Services (HVAC and plumbing installation and maintenance services provider); National Performance Warehouse (automotive aftermarket parts distributor); On Top Roofing & Sheet Metal Design (roofing repair and maintenance services provider). ■ 51

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Industry analysis “The U.S. tire market is still being plagued by many of the same issues that it faced at this time last year,” says John Healy, managing director and research analyst with Northcoast Research Holdings LLC (with, seated at computer, Wyatt Hulsey, Northcoast research associate, at the company’s office in Cleveland, Ohio.)

Photo: MTD

State of the industry FROM TIER TRADE-DOWN TO TARIFFS AND EVERYTHING IN BETWEEN, ANALYST JOHN HEALY EXAMINES FORCES THAT WILL CONTINUE TO SHAPE THE U.S. TIRE MARKET By

Mike Manges

“T

he U.S. tire market is still being plagued by many of the same issues that it faced at this time last year,” says John Healy, author of MTD’s monthly Your Marketplace column and managing director and research analyst at Northcoast Research Holdings LLC. In this MTD exclusive, Healy looks at the year that was and provides expert anal52

2501MTD_52-63_HealyArticle.indd 52

ysis of critical developments and trends that will help shape the tire industry in 2025.

One thing is for sure, he says: tire dealers who provide value to their customers will continue to prosper, regardless of market forces that are in play.

MTD: How would you describe the overall state of the U.S. tire market today versus where it was 12 months ago?

HEALY: Dealers seem to still be in a destocking rather than restocking mode, as prices remain high and month-to-month consumer-related activity seems hard to predict. Consumers are still faced with inflationary and macroeconomic pressures, forcing them to trade down into the lower-tier tire segments, as well as continuing to defer their tire maintenance, causing sellout trends to lag.

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Industry analysis MTD: You’ve reported that tire dealers have been struggling with consumer tire sellout. What do you attribute this to?

HEALY: To some degree, it’s an answer of the consumer and weather. As it relates to weather, we note winter 2023/early-2024 was a mild one. So far, the 2024 winter weather is off to a strong start, with strong snowstorms in the Great Lakes and Northeast regions. The National Oceanic and Atmospheric Administration is predicting wetter-than-average conditions in the entire northern tier of the U.S., but drier conditions in more southern parts of the country. There have been back-to-back, relatively “green” winters, allowing consumers to delay replacements potentially further than anticipated. If weather trends cooperate, we could see a catch-up period, heading into 2025. In addition to this, pricing has been another headwind to sellout trends as consumers opt for lower-priced tires.

Beyond this, rising tire prices and broader stress on the consumer wallet have also had an impact. We feel a major reason that sellout trends have been pressured has been because of consumer trade-down and deferrals.

Consumers are opting for lower-priced tires as they look to balance value and tire performance where the gap in performance between higher and lower tier tires has narrowed a bit.

The other half of it, consumer deferrals, has been a continuing trend in the industry. Simply put, tires are an area where the consumer is deferring purchase until necessary.

MTD: You mentioned the movement of consumers to lower-tier, less-expensive tires. Do you expect this to continue in 2025 and if so, why?

HEALY: Unless tire prices reset lower, we would say yes. We would expect to see the trend of consumers trading down to lower-tier, less-expensive tires to continue as we roll into 2025. For many years, we have always heard the tire business described as a tier-one to tier-three range. Lately, industry contacts have been talking about the tire market in four tiers. There has been a view among the industry that the product quality gaps between each tier have become a bit narrower and sometimes harder to distinguish between, leading many con54

2501MTD_52-63_HealyArticle.indd 54

sumers to trade down to lower tiers and value-driven tires. And we believe that this trend will continue. Additionally, we feel many dealers would rather convert a sale than simply miss out on one and as such, we have seen more and more dealers begin to increase their product assortment to carry more private label or alternative-brand products in 2024.

‘Tires are an area where the consumer is deferring purchase until necessary.’

John Healy

“We feel a major reason that sellout trends have been pressured has been because of consumer trade-down and deferrals,” says Healy. “Consumers are looking for lower-priced tires as they look to balance value and tire performance.”

Photo: MTD

MTD: Large tire dealerships used acquisitions to get even bigger in 2024.

Do you expect to see an acceleration of tire dealership mergers and acqusitions (M&A) in 2025 and if yes, why?

HEALY: We expect to see an acceleration of tire M&A in 2025. There is a lot of uninvested capital out there — dry powder is elevated in private equity — and rates have started to move lower. As it relates to dealerships, we think the business remains a good one. The tire and service businesses are stable and over the longterm, have proven more resilient than some might think. Given the natural benefits of scale — as well as an aging of the dealer owner base and perhaps a void of interest amongst younger generations to run the operations — we would not be surprised to see activity pick up a bit.

MTD: Three tire manufacturers — Yokohama Tire Corp., Sailun Tire Americas and Zhongce Rubber Group Co. Ltd. (ZC Rubber) — broke ground on new plants

in Mexico during 2024. Do you think more tire manufacturers will invest in production facilities in the U.S., Canada and Mexico during 2025 and in the years that follow? What are some of the factors that will drive this?

HEALY: To some degree, this is a hard question to answer without taking into account cross-border political dynamics.

That said, assuming no new tariffs and a continuation of trade agreements, we believe more manufacturers will continue to invest in more production facilities in the NAFTA zone. Proximity of having a manufacturing base in the NAFTA zone helps service levels broadly for U.S. dealer networks. Being able to respond quickly to local demands can help manufacturers ensure prompt delivery of what product is needed at a faster pace than if it was imported overseas.

All this considered, we would not be surprised to see some investments more focused on in-country efforts.

We note there have been numerous MTD January 2025

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Industry analysis announcements in the past 12 months about expansions or plans to build in the U.S. directly. Earlier this year, British tire start-up Enso announced plans to build a $500 million manufacturing plant in the U.S., aiming to produce 20 million tires annually for EVs. Additionally, Hankook Tire America Corp. has implemented a plan to more than double production capacity in its Tennessee facility, while Continental AG announced the construction of its first fully owned tire distribution center in the U.S. in September.

less price-competitive in the U.S. market, which is going to force U.S. buyers to seek more affordable alternatives.

We are likely to see a realignment of Asian TBR tire manufacturing as a result of tariffs. Manufacturers may seek to move production from Thailand to other Southeast Asian countries like Vietnam, Indonesia, Malaysia, etc. Companies will likely invest in expanding facilities outside of Thailand to maintain access to the U.S. market without the increased tariffs.

Given these moves are related to costs, as

“At the end of day, consumers do business with operators who help them,” says Healy. “So if you are a dealer, make it easy to set appointments. Have knowledgeable and welcoming counter staff and most importantly, do a good job on the install.”

Photo: MTD

MTD: The International Trade Commission recently issued its final decision on tariffs for TBR tires made in Thailand.

What effect, if any, will tariffs have on the flow of TBR exports from Thailand into the U.S.?

HEALY: The International Trade Commission has reached their decision and has determined that imports of TBR tires are causing material injury to the U.S. industry. As a result, the Department of Commerce has issued an antidumping duty order on imports from Thailand.

Most tire manufacturers and importers will be subject to a 12.33% tariff, but Bridgestone will pay a 48.39% tariff for its tires imported into the U.S. We are likely going to see reduced import volumes from Thailand. The increased tariffs are going to make TBR tires from Thailand 56

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well as operational complexities, it probably creates a nice window of opportunity for domestic TBR operators.

MTD: Speaking of commercial truck tires, we’re hearing that the replacement TBR tire segment is doing better-than-anticipated in the U.S. Is this what you’re hearing, too, and if so, what do you think is driving this growth?

HEALY: Several factors are helping drive growth in the TBR tire segment, including the continued stabilization of freight rates.

Additionally, the implementation of greenhouse gas regulations could be leading fleets to replace their tires to comply with new regulations. Specifically, the Environmental Protection Agency is enforcing stricter standards starting on Class 8 diesel trucks in 2027. We believe this will lead

to a pre-buy of trucks that are likely lower cost and not required to be compliant, providing a tailwind to original equipment TBR tires over the next two-three years.

MTD: Four of the 10 largest independent tire dealerships listed on the 2024 MTD 100 are owned by private equity firms. Do you foresee a continuation of this trend now that economic indicators (inflation, interest rates, etc.) are moving in a more favorable direction?

HEALY: Looking at the top 10 dealerships, I think you would find various operating and ownership structures that make each of those entities unique. While always difficult to say never, I wouldn’t expect many additional entities of the top 10 to be private equity-owned. That said, I think private equity will still be interested in being a stakeholder in the sector and being active building scale with smaller and midsize tire dealer outfit chains. Acquiring big companies typically comes with more risk and integration complexity, so I expect the mid-tier of the market to be the ripe market for activity.

Bolt-on, geography-expanding deals and tuck-in scale building targets are typically the most attractive for platforms owned by private equity and I would expect this to be the area of the market that remains most attractive in 2025.

Interest rates going lower and perhaps more clarity relating to regulation and economic trends likely creates a better track for M&A activity. Given this, we think 2025 could be more active than 2024, given recent macro-developments.

MTD: It’s now been several years since several private equity-backed entities have bought tire dealerships. The average length of time for ownership by private equity used to be between three and five years, but in recent years that time has increased. Nevertheless, some of these companies are reaching the tail-end of ownership. What do you see happening with those companies?

HEALY: While private equity does typically only own assets for three to five years, they care more about making money than sticking to their original timelines. I think right now, owners are in more of a waiting period for some level of retail stabilization/ growth to firm up their multiples.

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Industry analysis ‘We expect to see an acceleration of tire M&A in 2025.

There is a lot of uninvested capital out there.’

John Healy

MTD: What’s your take on internal changes that continue to take place at TBC Corp.?

HEALY: The recent changes in selling its retail tire and auto service holdings have allowed TBC to focus more on the core of its business, which is being the franchisor/distributor of choice, and removing the distraction of trying to operate their own retail sector. The transaction they completed with Mavis strengthened their already extensive wholesale business, as well, by allowing them to provide wholesale distribution for Mavis retail locations.

(Editor’s note: Mavis Tire Express Services Corp. — the largest tire dealership in the U.S. based on store count — acquired nearly 600 retail stores from TBC in 2023.)

MTD: American Tire Distributors Inc. (ATD) recently announced that it has “entered into a restructuring support agreement with certain lenders” — marking the second time the company has filed Chapter 11 in the past six years. What does this mean for ATD, its suppliers and its customers?

HEALY: From a day-to-day basis for customers, I am not sure it means a lot in the near-term. My guess is the new set of decision-makers will want to keep the tires moving and cash flow arriving. That said, with the new slate of owners, they likely will decide what to change.

The goal of the business appears sound, but whether it’s costs or leverage, something needs to change. Hopefully, this

restructuring relating to debt/liabilities will give them the relief to probably get leaner and more direct, as they approach their daily goals of filling dealers with the product they need to get consumers back on the road. Regarding what it means for suppliers, the court system will largely have a big say in those decisions, so stay tuned.

MTD: How will the ATD Chapter 11 bankruptcy change the landscape of tire distribution in the U.S.? What percent of the overall wholesale tire market do you think ATD represents?

HEALY: We are not expecting a shift in the next few months, but the reemergence of the business post this second bankruptcy one would think will be different. Perhaps the company gets smaller and perhaps it changes the lines it carries, which to us seem to be the most reasonable outcomes.

Right now, we think ATD moves about five percent to 10% of the replacement market annually in the U.S. and likely closer to the low-end of the market. Given the noise related to the restructuring, it without a

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doubt creates a window of opportunity for other wholesalers to step up and serve the customer and capitalize on any distractions or potential changes in manufacturer product availability. Dealers like consistency. If a wholesaler can provide that, it’s powerful.

MTD: Do you see ATD downsizing its operations, perhaps in the form of closing or selling some of its distribution centers?

HEALY: Goodyear’s initial divestiture efforts were targeted around three assets: Dunlop, OTR and chemical. Normally, I would say these types of divestitures take six to 12 months. That said, doing three of them at one time is complicated, so I am not surprised that perhaps the process is taking a bit longer than anticipated. Additionally, the economy, interest rates and the recent presidential election all were probably items

that governed buyer intentions to some degree. Given this, I would not be surprised to see progress pick up a bit in 2025.

In our view, each of these assets likely has an interested audience and we believe the plan remains still for chemical and Dunlop to find a new home. As it relates to the Dunlop asset, we think the most natural buyer is likely a well-funded tire manufacturer out of Asia or Europe that

HEALY: Hard to know as an outsider, but my view is that if you need to restructure twice in a short period of time, perhaps more sizeable changes are needed to the strategy or reach of the operations. In the distribution business, scale and density are important. Perhaps redrawing the map of how the business competes might be a reasonable thing to do.

MTD: Goodyear Tire & Rubber Co. accomplished one part of its Goodyear Forward plan in 2024 when it sold its OTR tire division to Yokohama Rubber Co. Ltd. How does the spin-off of this business unit impact Goodyear’s overall position? How does it benefit Yokohama?

HEALY: The sale of the OTR division allows Goodyear to make significant progress on its Goodyear Forward plan, enabling the company to reduce its leverage and fund strategic initiatives. Goodyear can now shift more concentration on enhancing its profitability to its core consumer and commercial tire markets. For Yokohama, the acquisition aligns with their medium-term management plan, Yokohama Transformation 2026, which puts a heavy emphasis in growth of the off-highway sector. Yokohama has said that globally the OTR tire market is expected to grow around 6% per year, which is considerably higher than the projected 2% annual growth for the consumer tire market. This acquisition positions them to capitalize on this future growth potential.

MTD: Do you think Goodyear will find buyers for its Dunlop brand and chemical business in the new year? If so, who will the likely buyers be and how soon can we expect to see these transactions occur?

(Editor’s note: this question was asked a few weeks before Goodyear announced the agreement to sell the Dunlop brand to Sumitomo Rubber Industries Inc., a deal totaling $701 million that is expected to close by the middle of 2025.)

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Industry analysis is looking to wrap their production and design in a brand that potentially could be reinvigorated to allow them to become a more visible force in the tire replacement market.

MTD: What progress has Goodyear made on the more than $1 billion in cuts that it has pledged to make by the end of 2025?

Do you think that goal is achievable?

HEALY: Goodyear has been able to make significant progress on its Goodyear Forward plan. In the company’s third quarter earnings call, they reported segment operating income (SOI) of $933 million through the first nine months of the year, up from $348 million at this point in 2023, with $285 million coming from Goodyear Forward benefits. Management also highlighted the company had achieved four

MTD: We witnessed CEO-level leadership changes at Michelin North America Inc., Bridgestone Americas Inc. and Goodyear during 2024. Why do you think these changes were made and how will they benefit those respective companies? Do you expect to see more C-Suite reshuffling at other tiremakers?

HEALY: CEO appointments are not lifelong and we believe the actions by each of these companies reflect that. We have seen a trend of tire companies using internal team promotions, as well as venturing into other areas of automotive to find their top-appointments. To us, this makes sense. At the end of day, tire manufacturing and retailing is a tough, unique business. Internal tenure and experience and most importantly credibility and relationships are huge assets and are needed to be successful. We wish each of these new leaders success in 2025 and believe the boards that picked these leaders all seem to have made reasonable, sound decisions.

From our perspective, the tire business is a tough one and it is an even tougher one to learn on the fly without a bit of history.

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MTD: The electric vehicle (EV) market has cooled off considerably. What impact will this have on tiremakers and the roll out of new EV-specific tires? Long-term, will the EV-specific tire category remain viable?

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consecutive quarters of SOI expansion.

Based off the significant progress made, the company increased their target for gross run-rate gains from Goodyear Forward to $1.5 billion by the end of 2025. We believe this goal is achievable, with the company showing strong execution so far of its transformation plan.

HEALY: We are not overly bullish on the acceleration of EV as a category for new vehicles for the next few years, mainly in the U.S. While it remains to be seen if government-issued consumer credits will stay in the market, we feel that even with these incentives, the adoption curve for EV has fallen short of expectations. In our view, battery range anxiety, especially in colder weather climates, is a hurdle. Additionally, awareness and breadth of charging infrastructure remains less developed than hoped.

Given this, we expect manufacturers to pause a bit on ramping up EV production, but expect them to remain active with EV-related R&D. It’s important to

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remember that the tire market is a global one. Europe remains active in pushing the adoption of EVs and we believe this aspect of the market being global will keep manufacturers active in the category.

MTD: All-weather tires, according to some tiremakers, now make up the fastest-growing consumer tire category in the U.S. Are there other product categories that are primed for growth?

HEALY: All-weather tires are definitely one of the fastest-growing segments as consumers look for more year-round, value-oriented options. High performance tires also continue to garner consumer interest as some continue to lean entirely towards the performance side of the performance-value equation. Electric vehicles, while slowing, are still increasing as a percentage of the car parc and will continue to require innovative and specific tires, given their increased weight.

MTD: What are the five biggest headwinds for both manufacturers and the distribution channel in 2025?

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HEALY: Not sure I have five headwinds, as many are more broad/macro centric, but I will try. The consumer is still recovering from inflationary pressures, causing a deferral of vehicle maintenance; stubbornly high raw material costs for tire manufacturers; increased levels of imports, pressuring legacy tire manufacturers; uncertainty relating to go-forward trade dynamics and sourcing; and labor/ wage inflation and the ability to keep/find vehicle technicians.

MTD: What are the five biggest tailwinds for both manufacturers and the distribution channel in 2025?

HEALY: The biggest tailwind we see out there is that miles driven and the economy — measured in terms of unemployment — are still fairly healthy. Beyond this, we believe the consumer has reprioritized spend from vehicle maintenance to other areas in order to get by. Given this, we view deferral of maintenance as a tailwind that should be unleashed at some point.

Additionally, winter weather has been less

severe the last few years, so some reversion to the mean in terms of precipitation could be a positive development. Beyond this, vehicle car parc dynamics, larger fitments and EV tires should also serve to be helpful to industry demand and profitability dynamics in 2025 and future years.

MTD: What’s your advice to independent tire dealers as they navigate the market in the new year?

HEALY: I would say the same thing every year: provide value to your customer. At the end of day, consumers do business with operators who help them. So if you are a dealer, make it easy to set appointments.

Have knowledgeable and welcoming counter staff and most importantly, do a good job on the install. If you do these three things every day, it’s hard to think that 2025 won’t be a prosperous year.

That said, the consumer is fragile as it relates to spending and inflationary dynamics, so I would recommend having a good, value product that you think is of quality — at a reasonable price. ■

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Photo: Jared Navarre | Romph Pou Agency

“It’s a true honor to be chosen as MTD Tire Dealer of the Year. It’s a true testament to the hard work and dedication we at Chabill’s put in to provide the world class customer service we strive for each and every day.”

— Beth Barron, CEO, Chabill’s Tire & Auto Service

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WE WANT TO HEAR FROM YOU! Nominate a candidate for MTD’s 2025 Tire Dealer of the Year Award Established in 1993, Modern Tire Dealer’s Tire Dealer of the Year Award is the oldest, most prestigious honor of its kind.

Each year, Tire Dealer of the Year Award candidates are evaluated in five categories:

1. BUSINESS SUCCESS 2. MARKETING SKILLS 3. MANAGEMENT SKILLS 4. INDUSTRY KNOWLEDGE 5. COMMUNITY INVOLVEMENT

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

DEADLINE FOR ENTRIES IS MAY 23, 2025.

To nominate, go to: www.moderntiredealer.com/awards For more information, contact MTD Editor Mike Manges at mmanges@endeavorb2b.com

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Wholesale distribution

Wholesale snapshot A LOOK AT TIRE DISTRIBUTION THROUGH THE EYES OF FIVE PLAYERS IN THE U.S. MARKET

By Mike Manges

F

or a glimpse into the world of tire distribution, we turned to leaders at some of the country’s largest wholesale tire distributors.

They offered insights into how they see the current state of the wholesale channel.

In an exclusive series of interviews, top executives from these wholesale tire distribution companies also provided a wrap-up of their activities from 2024, plus thoughts on their initiatives and priorities in the new year.

Sit back for conversations with Cheryl Gossard, president of K&M Tire Inc.; Ted Becker, CEO of TireHub LLC; Rodger Smith, chief operating officer of National Tire Wholesale; Joaquin Gonzalez Jr., president of Tire Group International LLC; and Phillip Kane, CEO of Turbo Wholesale Tires LLC.

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Wholesale distribution

K&M Tire Inc. MTD: Can you bring us up to speed on K&M Tire’s activities?

GOSSARD: 2024 was an exciting year for us at K&M Tire. Our mission is all about continuous improvement in all ways and that is something we really take to heart.

That has included moving into several larger warehouses to accommodate our growth so that we can take care of our customers even better than ever before.

We also wrapped up a multi-year project to implement a warehouse management system, which allows us to stock more tires in our existing warehouses with the same amount of space. This system drives improved efficiency for our K&M team and improved accuracy for our family of customers. For us, this project has been incredibly important because it was a win-win for our team and our customers.

We are also in the beginning phases of incorporating a new purchasing and inventory management system, which gives us a quicker reaction time to supply changes and sales demand, while working with our tire manufacturer partners even more effectively. The goal is to be better at ordering and stocking the right tires, so we have them when and where our customers need them.

As K&M Tire continues to grow, it has become more important than ever before that we keep our entire team engaged and on the same page. As a result, last year we began a new internal initiative that we call ‘K&M On the Road.’ Along with our operations leadership team and representatives from several key areas of our business, I have invested a significant amount of time visiting all of our locations.

This has been instrumental in getting to know our team members better, obtaining critical feedback from them and increasing their knowledge of the benefits we have to offer. We grilled out, played yard games, tested their knowledge and most importantly, it was a chance for us to really listen and connect with our teammates face to face. Because it was so successful, we intend to continue this initiative into 2025.

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“As we enter our 55th year in business, we are cautiously optimistic about the state of the industry in 2025,” says Cheryl Gossard, president of K&M Tire Inc. Photo: K&M Tire Inc.

Most recently, we closed on our acquisition of K&W Tire. (Editor’s note: K&M Tire announced its acquisition of Lancaster, Pa.-based K&W Tire this past September. The deal gave K&M Tire six distribution centers throughout New England.) Founded in 1951 and servicing 13 states, we are proud to continue their legacy of offering a high level of service to our customers.

MTD: What’s your take on the general state of the wholesale tire distribution channel in the U.S. as the year begins?

where we can supply them with all of their tire needs, ranging from lawn and garden, PLT, truck, ag and even small OTR and mining tires. We are always on the lookout for growth opportunities and we are proud to service our customers in all of our geographic markets.

MTD: Are you looking to acquire more wholesalers in the northeastern part of the U.S.?

GOSSARD: For us, the bottom line is that we continue to focus on serving our family of customers well. The growth is certainly exciting and we are always looking for the right opportunities. But for us, growing organically with a brand new warehouse or growing through acquisition are simply byproducts of taking great care of our customers. That has been and always will be our number one focus at K&M Tire.

MTD: Are there other parts of the U.S. where K&M doesn’t currently have a presence that you want to be in?

MTD: As you mentioned, K&M Tire made a major acquisition this past September when it acquired K&W Tire, which has six distribution centers throughout New England. Why was K&W an attractive acquisition and why is New England an important market for K&M Tire?

GOSSARD: We have made nearly two dozen acquisitions over the past couple of decades and in many different markets. And each time, we look for great opportunities with great people who are focused on taking great care of customers.

For us, geography is secondary. But as I said earlier, we are always on the lookout for the right growth opportunities and look at each one to see if it makes sense for us. We are not in the business of acquiring companies to reach a certain number of locations. We are in the business of serving people and when there is an opportunity, our first step is to consider if it fits geographically, culturally and economically. If it passes that first round of testing, then there are many other things we consider, which include factors such as timing, stress load on our current team, brands, associate dealer programs and logistics.

GOSSARD: We are incredibly proud to welcome the K&W team and customers to the K&M Tire family. From a business and cultural perspective, we felt like it was a great fit and that has turned out to be the case. We are especially interested in markets where there is a high demand for all tire segments that we carry. Our goal is to be a one-stop shop for our customers

MTD: When we last talked in January 2024, you mentioned that K&M Tire was in the process of ‘leveling-up’ its customer service capabilities, including adding regional program managers, researching and eventually deploying new supply chain software and other initiatives. Can you bring us up to speed on what’s been accomplished in these areas?

GOSSARD: As we enter our 55th year in business, we are cautiously optimistic about the state of the industry in 2025.

Although we certainly expect some headwinds, we also recognize that times like these represent an opportunity for us to double down on improving our processes and investing in our people so that we can continue to offer industry-leading service to our customers.

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Wholesale distribution GOSSARD: Our company theme for 2024 was Level Up, which included several internal initiatives aimed at providing higher levels of service to our customers. We now have a team of five dedicated Regional Programs Managers who work alongside our outside sales team and are focused on helping our customers to maximize their tire program earnings.

We also wrapped up the implementation of our new warehouse management system and we are in the beginning stages of rolling out a brand new inventory management system. We are intentionally rolling these out slowly and thoroughly testing as we go.

In addition to these items, we have been working on enhancing the functionality of our online ordering portal called Weblink. We rolled out phase one of these enhancements earlier (in 2024) and phase two is currently in testing with a Jan. 1, 2025, roll-out target. These investments represent the passion and commitment we have for our family of customers.

MTD: What can we expect to see from K&M Tire in 2025?

GOSSARD: 2025 marks our 55th year in business and today our team is more passionate and driven than ever before.

Our ultimate goal is to be the leading and most trusted tire distribution partner everywhere we do business.

Our focus is on continuous improvement in all areas of our business. From intentionally developing and training our team to improving our internal systems and processes, K&M Tire is focused and dedicated to being better each and every day because making our customers the most important people in our business isn’t just our number-one value — it’s the K&M motto and our guiding principle.

At K&M, we exist to improve the lives of others. This includes our team, our customers and the communities where we are located. I’ll be the first to say that we have opportunities and work to do. Being the leading and the most trusted isn’t a destination, but a journey. We are continuing to gain momentum and it’s an exciting time to be part of the K&M Tire family.

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TireHub LLC MTD: Can you bring us up to speed on TireHub’s activities? Have you added locations and/or enhanced TireHub’s capabilities?

BECKER: 2024 was a year of enhancing several of TireHub’s core capabilities: capacity, retail support for customers and technology.

Growing our network has been a priority this year. In 2023, we opened our first regional distribution center (RDC) in Allentown, Pa. In early October 2024, we opened our second RDC in Fort Worth, Texas. It’s a 422,000-square-foot facility that significantly increases our inventory capacity and allows us to hold more breadth and depth of the Bridgestone and Goodyear portfolios, in addition to assorted complimentary products. (Editor’s note: Formed in 2018, TireHub is a joint venture between Bridgestone Americas Inc. and Goodyear Tire & Rubber Co.) We also opened a new TireHub Logistics Center (TLC) in St. Louis, Mo., at the beginning of the year and have seen great success in increasing our share of market in that area. We’re on track to open three more TLCs by year end, as well, in Milwaukee, Wis.; Charleston, S.C.; and a second location in Boston, Mass. This will bring our total network footprint to 80 TLCs and two RDCs. Lastly, in regard to growing our network, we also constantly evaluate our current centers to make improvements when needs arise. For example, we just moved our location in Miami to one that is significantly larger and in a better location to meet more of the needs of dealers and retailers.

Last year, we launched our TireHub Plus dealer program. TireHub Plus is a comprehensive solution of tools and services that will help boost revenue, enhance profitability and attract new consumers for TireHub customers. Simply put, it is designed to help independent tire dealers be more successful and we’ve exceeded our expectations with the growth of this new program.

Also in 2024, we continued to invest in our B2B Dealer portal, TireHub Now. Year-to-date, we have focused on exceed-

“We are delivering on what is important for our customers: just-in-time, forward-deployed inventory, with consistent national availability and leading breadth and depth,” says Ted Becker, CEO of TireHub LLC. Photo: TireHub LLC

ing dealers’ expectations with new functionality that makes it easier for them to achieve their service goals: better search capabilities, enhanced delivery tracking, a more modern user interface, enriched program support, at-a-glance rebate information and more. Our goal is for TireHub Now to be the reference in the industry.

MTD: What’s your take on the state of the wholesale tire distribution channel in the U.S.?

BECKER: The wholesale tire distribution channel continued to face pressure in the second half of 2024. Among other things, shifts in consumer demand, consolidation, e-commerce growth and supply chain changes/disruptions are impacting distributors and the way they do business. That said, we are bullish on the role wholesale distribution plays to support just-intime needs for tire dealers and retailers.

Therefore, we are more focused on the long-term opportunity for this channel.

The need for forward-deployed inventory and just-in-time delivery is more critical than ever before.

TireHub’s strategy is to maintain our sights and investments on where we win: increased capacity, leading inventory depth and breadth, superior service and operational flexibility to support our customers and our key partners, Goodyear and Bridgestone.

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MTD: How is consolidation among wholesalers/distributors forcing TireHub to be a better wholesaler/distributor?

What has TireHub changed or improved upon in response to what’s happening in the landscape?

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Wholesale distribution

National Tire Wholesale TireHub LLC continues to open regional distribution centers.

Photo: TireHub LLC

BECKER: With consolidation comes both opportunities and risk and that has certainly been true among wholesalers/ distributors. That said, regardless of what happens with consolidation, we are delivering on what is important for our customers: just-in-time, forward-deployed inventory, with consistent national availability and leading breadth and depth. This is what Goodyear and Bridgestone created TireHub to do and this is where we intend to continue winning.

MTD: Is TireHub planning to pick up and carry any new tire brands?

MTD: Have the shipping challenges of the past several years normalized or are things still in a state of flux? If the latter, how is TireHub navigating those challenges?

MTD: What can we expect to see from TireHub? What will be the company’s top priorities?

BECKER: We have all seen the shipping challenges that have occurred as of late, but we are fortunate to have experienced minimal impact, especially when it comes to international products.

MTD: Many tire distributors invested a great deal of time and energy in right-sizing their inventory levels during late-2022 and 2023. How would you describe TireHub’s current inventory?

BECKER: TireHub has a very unique proposition: we are tasked with providing the full breadth and depth offering of Bridgestone and Goodyear products. As we have added capacity to our network during this time, we’ve increased inventory. Our inventory levels are the best they’ve ever been and we will continue to grow inventory to fulfill our mission and meet the needs of the industry.

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BECKER: TireHub is unique in that we’re a premium brand-focused distributor. We are proud of our brand portfolio and will continue to provide our customers (with) the best possible experience with our current offerings.

We continually re-evaluate the needs of dealers and retailers to remain competitive in the marketplace and will always ensure their needs are met.

BECKER: You can expect TireHub to stay focused on the needs of our customers because we are committed to helping them elevate their business. Our ‘Hubbers’ (employees) put customers at the center of everything. In fact, we have built our culture around saying ‘yes’ to dealers and retailers. So our top priorities remain capacity, services and technology. We will exceed customers’ needs with increased capacity, delivery excellence, contemporary retail support, best-in-class technology and the right inventory at the right place at the right time.

When TireHub was created in 2018, we were set up to be intentionally outrageous, readily embrace challenges, introduce new ideas and build something unique. Six years in, I’m proud and confident to say it’s working. We have been different from the beginning and that remains how we win for our key partners and most importantly, our customers.

MTD: Can you bring us up to speed on National Tire Wholesale’s (NTW) activities over the last few years? Have you added locations and/or enhanced NTW’s capabilities during that time?

SMITH: We’ve been laser-focused on our ‘supply chain as a service’ initiative, which aims to remove redundancies and drive efficiencies in the automotive retail and distribution space to make it easier for our customers to conduct business, leveraging both NTW and TBC Corp.’s capabilities and network of 110 distribution centers around the U.S. We’re well-positioned to support our customers as they continue to expand into new markets, both with managing their supply chain operations and by offering factory-direct, truckload and same-day deliveries of brand-name and proprietary brand tires.

In terms of new locations, we recently celebrated the opening of our new distribution center in Nampa, Idaho, which is strategically located to provide our customers across Idaho and eastern Oregon with faster deliveries and more efficient service.

We are focused on excellence at every turn and our presence in the Boise market demonstrates our commitment to ensuring our customers have the products they need, when they need them.

MTD: What’s your take on the state of the wholesale tire distribution channel in the U.S. as we move into 2025?

SMITH: The wholesale tire distribution business is in a state of significant transformation. We believe there will be a desire for more strategic alignment between retailers and manufacturers and national distributors, with retailers and suppliers opting to leverage the supply chain capabilities of companies like NTW to increase efficiencies and reduce operating costs.

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MTD: Have the shipping challenges of the past several years normalized or are things still in a state of flux? If the latter, how is NTW navigating those challenges?

SMITH: The shipping challenges of the past several years have normalized to a degree. However, there will always be challenges that arise for any product that is imported due to international trade, port disruptions, tariffs and more.

We have strong relationships with suppliers and manufacturers and engage in ongoing discussions to stay ahead of the curve and find solutions to navigate any potential challenges for our end-customers.

MTD: Many distributors invested time and energy in right-sizing their inventory levels during late-2022 and 2023.

How would you describe NTW’s current inventory levels?

SMITH: Effective inventory management is a key driver of operational efficiency and customer satisfaction. Through our

MTD: Is NTW planning to pick up and carry any new tire brands this year or the next?

“We’ll continue to take measures to optimize NTW’s supply chain and make strategic investments to exceed our customers’ expectations,” says Rodger Smith, chief operating officer of National Tire Wholesale.

Photo: National Tire Wholesale

thoughtful demand-planning process and strong relationships with our suppliers, we’ve optimized our inventory flow to drive efficiencies and implemented a justin-time inventory strategy, so that we can respond to changing customer demands in a timely manner.

SMITH: NTW, a subsidiary of TBC Corp., offers tires from top brands across a variety of price points to address our customers’ needs for passenger, SUV, light truck, commercial, specialty tires and more. We are in constant contact with our customers and suppliers and regularly discuss strategic opportunities to innovate and create value with additions to our product portfolio. We look forward to sharing more updates in the new year.

MTD: What can we expect to see from NTW in the new year? What will be the company’s top priorities?

SMITH: We’ll continue to take measures to optimize NTW’s supply chain and make strategic investments to exceed our customers’ expectations and position TBC as the distributor of choice in the industry.

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Tire Group International LLC MTD: Can you bring us up to speed on TGI’s activities, particularly as they relate to the company’s Cosmo brand?

GONZALEZ: Tire Group International has focused on expanding the reach of Cosmo Tires, strengthening its presence across key markets.

We have actively promoted and proactively invested in the marketing of the Cosmo brand throughout North American and Latin American markets, leveraging our established distribution channels to boost visibility and sales. In parallel, creating strategic partnerships and collaborations with distributors has helped TGI expand Cosmo’s footprint, particularly in North America.

Cosmo’s commitment to innovation has driven the introduction of new models designed for different applications.

The focus on quality, performance and affordability has been at the forefront of our strategy in developing these products. Cosmo is all about creating value for the consumer.

Additionally, TGI has made significant strides in digitalization, enhancing its e-commerce platforms to improve the customer experience and drive online sales of Cosmo products, which ultimately benefits every wholesaler stocking the brand.

Cosmo has also developed the Kool Kat Assets website, which is a robust, one-of-a-kind digital hub that contains a multitude of marketing assets — everything from logos, mascot drawings, official color palettes, sample radio and TV ads, a myriad of social media content, social media instructional videos, retail program guidelines, point-of-sales materials to order (many at no charge), etc.

And lastly, we have the Kool Kat Test that if you pass, you get a swag bag with a value of over $100!

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Are there other acquisitions in the works?

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providing product education, premium service and expert advice.

Customer response has been positive, with many appreciating the exclusive focus on Cosmo products, which simplifies purchasing and fosters trust in the brand. The program has also helped build brand loyalty by associating Cosmo with quality and personalized service.

Based on the program’s success and valuable customer insights, TGI plans to expand the retail concept into new markets, further boosting Cosmo’s presence.

MTD: What’s your take on the general state of the wholesale tire distribution channel in the U.S. as the new year begins?

“Tire Group International has focused on expanding the reach of Cosmo Tires, strengthening its presence across key markets,” says Joaquin Gonzalez Jr., president of TGI. He’s on the right, pictured with brother and TGI CEO Tony Gonzalez.

Photo: MTD

products through other wholesalers? Is this a part of your business that you’re trying to grow?

GONZALEZ: Understanding TGI’s family-first culture will tell you all there is to know about our strategy. There are plenty of wholesalers out there that can sell you a tire. We aim to do much more that that. We are looking for true partnerships, where we can leverage every party’s strengths and focus on building a brand. We are actively looking for these partnerships and are open to exploring what a future looks like together.

MTD: Can you bring us up to speed on the Cosmo retail store program and how it’s been received by customers? (Editor’s note: TGI opened its first Cosmo retail store, an outlet in Hollywood, Fla., in 2023. In February 2024, the company opened a second Cosmo store.)

GONZALEZ: The Cosmo retail store program aims to enhance brand visibility by creating dedicated, branded spaces within retail outlets, offering customers a personalized shopping experience. These stores showcase the full range of Cosmo Tires,

GONZALEZ: The wholesale tire distribution channel in the U.S. has been navigating a dynamic landscape marked by stabilizing supply chains and strong demand for both passenger and commercial tires.

While inventory challenges and fluctuating shipping costs remain, the demand is driven by vehicle fleet expansions and a heightened focus on sustainability and electric vehicles.

Digital transformation has become a priority, with wholesalers adopting e-commerce platforms and digital tools to streamline operations and enhance customer experiences.

The rise of direct-to-consumer sales models has increased competition, prompting wholesalers to offer value-added services and flexible distribution solutions.

Looking ahead, those who can balance inventory management, embrace digitalization and adapt to changing consumer preferences are well-positioned for growth in a consolidating market.

Overall, Cosmo Tires has seen considerable growth over the past 24 months and we attribute that to our relentless commitment to our partners and our family-first approach.

MTD: What can we expect to see from TGI? What will be the company’s top priorities? Can we expect to see new Cosmo brand products hitting the market?

GONZALEZ: As we get into the home stretch of 2024, we want to make sure we finish the year strong. We are on pace to MTD January 2025

1/13/25 12:05 PM

making this TGI’s and Cosmo best year ever. We are excited for SEMA and the introduction of two new product lines for Cosmo. (Editor’s note: This interview was conducted several weeks before the 2024 SEMA Show.)

Our Cosmo Kurrent, a premium touring tire, offers a smooth, quiet ride with Quiet Kat Technology.

Built for performance, it features extra load capacity (XL), a tread wear indicator and is EV-ready. With optimized rolling resistance, it’s ideal for long-distance travel and supports a variety of vehicles.

Our Cosmo GripIt XT (is) an all-terrain tire built for extreme conditions, featuring a mud-rated design and customizable two-sidewall aesthetics.

With Directed Super Silica for better wet traction, Quiet Kat Technology for a quieter ride and a patented bead claw for extra traction and wheel protection, it’s a top choice for off-road enthusiasts.

Cosmo is all about creating partnerships with like-minded entrepreneurs.

We market relentlessly, with a focus on building long-term brand equity that

Tire Group International LLC opened its first Cosmo retail store in 2023.

Photo: Tire Group International LLC

will benefit our partners, both at the wholesale level and retail level. We are passionate about what we do and we are

serious about how we go about doing it.

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Wholesale distribution

Turbo Wholesale Tires LLC MTD: Can you bring us up to speed on Turbo Wholesale Tires LLC’s activities as 2025 begins?

KANE: 2024 was a busy year at Turbo.

The bulk of our efforts have been focused on three significant priorities: growth, new product development and the integration of our Tire Wholesalers Inc. (TWI) acquisition. (Editor’s note: Turbo acquired Michigan-based TWI, which had been owned by the Kogel family, in 2023.)

I’m pleased to report that we’ve done very well in regard to all three. Even in a difficult market, thanks to the great support of our customers, our brands have grown significantly year on year. So we’re very happy about that, as you can imagine.

On the product development front, with our customers, late last year — after the product launch in our parking lot — we identified more than 15 new projects that we thought would bring additional value to our portfolio. By mid-2025, we’ll have delivered every one of them.

Finally, we put the integration of TWI on a fairly aggressive timeline because having a fully aligned organization is just better for our customers and by our 10th month into the deal, we were done, which surprised a lot of people.

MTD: What’s your take on the general state of the wholesale tire distribution channel in the U.S. at the moment?

KANE: I know I don’t have to tell you that (2024 was) an interesting year. I’m not sure that I’m going to tell you anything different than the others you’ve interviewed here have said.

The business mix in traditional wholesale — between our own books and secondary supply-type deliveries — feels like it’s continuing to shift toward deliveries, putting pressure on margin in a year when average selling price is already depressed.

And we’ve all seen a significant migration from tiers one and two to value segments.

Certainly, that’s been great for our proprietary business.

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“We are focused on growing brand share, not distribution share,” says Phillip Kane, CEO of Turbo Wholesale Tires LLC. “We feel that our brands are a tremendously differentiating feature of our business and one that delivers significant and very unique value to our customers.”

Photo: Turbo Wholesale Tires LLC

It’s required that we work a lot harder to take a bigger piece of a smaller pie in the upper tiers, though. But that’s what it takes.

I’ve long believed that in a traditional wholesale business, for all the investments one makes in improved distribution capability, their reward is to remain one of four to six tabs open on every screen on every parts counter in every tire store in America.

We see that as a really tough business.

That’s why we are focused on growing brand share, not distribution share.

We feel that our brands are a tremendously differentiating feature of our business and one that delivers significant and very unique value to our customers.

Now that consumers have had two to three replacement cycles to experience the quality of ride and construction in our tires and others in our segment, we don’t see them trading back up just because something changes in the economy. So we’re long-term bullish on the value tier and feel we’re well-positioned to continue to grow share by delighting our customers.

MTD: Turbo continues to expand and evolve its proprietary tire lines — most recently introducing Rolling Big Power brand TBR tires. What is Turbo’s overall product strategy and what new products are in the pipeline?

KANE: Overall, you’ll see us focus on positioning Lexani as our flagship PLT brand. We’ll be introducing products in the first half that extend the brand from broadline to true UHP and completely fill in any white space that once existed in the brand. Whether EV, run-on flat, all-weather, summer, touring or all-terrain, Lexani consumers can have everything while sacrificing nothing.

Turning to Rolling Big Power, when we acquired the business in late-2022, RBP was essentially a mud terrain line. Our customers told us that it would be better if the brand covered all light truck segments: M/T, R/T, X/T, A/T, H/T, S/T and even commercial van. So we committed to doing so by the end of this year, which we will.

In addition, as you mentioned, we launched Turbo’s first ever TBR line, a 40-plus SKU offering manufactured by Double Coin last year, as well, which, as a truck guy, I am particularly excited about.

Finally, Lionhart gets a complete makeover, too. From a refreshed brand image to three brand new lines that are specifically targeted at the consumers who are most involved with our brand, Lionhart is being remade from the ground up.

MTD: Are there plans to add more Turbo distribution centers throughout the country and if so, are you targeting specific geographies?

KANE: Our interest in expansion is primarily two-fold: first, to facilitate faster and better service to the distributor customers that we rely upon to further move our proprietary products to our associated retailers and second, to enable us to receive inbound freight more economically and expeditiously.

If opportunities present themselves that meet those criteria, we’ll certainly take a look. But we’re not interested in expansion for the sake of expansion. Pins in the map don’t interest us. Remember, it’s not distribution share we are after. It’s brand share. We have no interest in competing MTD January 2025

1/13/25 12:05 PM

with our customers, but finding ways to service them better. If and when those deals pop up, we’ll listen.

program of its kind to understand and navigate.

Dealers don’t like hurdles and hoops.

They don’t want complexity. It’s their money. It shouldn’t be hard to get to.

Ignite is simple and easy — the way things should be.

MTD: Can you bring us up to speed on Turbo’s Ignite associate dealer program, which was formally launched around this time last year? How many members does the Ignite program have, to date?

How has Ignite been received by dealers and why?

KANE: Ignite has been an overwhelming success, so far. Already we have over 500 qualified associate dealers enjoying the program and more than a dozen of our distributor partners aligned with us in offering it to dealers. I think best of all, maybe, it’s worked flawlessly from a mechanical standpoint so far, which is what really matters to the dealers who get involved. I’m really proud of that and the folks on our team who took the time to get it right.

I think the other thing that’s made Ignite so successful is that it’s super-simple.

I wanted this program to be the easiest

MTD: What can we expect to see from Turbo? What will be the company’s top priorities throughout 2025 and even beyond?

Turbo Wholesale Tires LLC’s Lexani Ignite associate dealer program has more than 500 members.

Photo:Turbo Wholesale Tires LLC

KANE: I personally — and the rest of our team, as well — spend a lot of time listening to our customers. They shape our priorities and the things that matter the most to us. We know why we’re here. We’re in the tire business. And we see ourselves as a product leadership organization, focused on bringing great products to the market that enable our customers to make more money than if we didn’t exist. And being a great place to buy from starts with being a great place to work. So whether it’s the rest of this year or next, that’s what we’ll be focused on. ■

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Auto service

R

How to proactively sell ride control service

“When talking to customers about potential repairs, use it as an opportunity to explain the importance of ride control and suspension parts,” says Adam Strobe, senior brand manager at DRiV Inc.

EDUCATING CONSUMERS IN ADVANCE IS KEY By

Kim Klimas

I

t’s no secret that ride control and suspension service can be a bit of a hard sell.

But there are ways to tap into that business, while simultaneously performing a service that optimizes ride quality and makes customers’ vehicles safer.

Adam Strobe, senior brand manager at DRiV Inc., says connecting with and educating the customer is key.

“Drivers know when something feels off with the ride of the vehicle, but they often aren’t aware of how ride control and suspension parts work together to contribute to the ride and handling of their vehicle,” he says.

In addition, the average vehicle owner may not realize that ride control and suspension components affect more than passenger comfort and drivability and can actually impact safety, he notes.

Since many customers don’t recognize the associated risk of neglecting maintenance of these components, issues may go unmentioned or unchecked until brought up preventively by a proactive technician or until they are called out during a vehicle inspection.

Strobe suggests having conversations with customers to educate them on why ride control service is necessary and that safety hazards may result if existing issues go unaddressed.

“When talking to customers about potential repairs, use it as an opportunity 76

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Photo: DRiV Inc.

to explain the importance of ride control and suspension parts,” he says.

The greater a customer’s awareness about how these parts work to enhance on-road protection, the greater the likelihood that they will see value in completing the service, according to Strobe.

The average customer may notice a gradual decline in ride quality or comfort and think that it’s a minor inconvenience, not recognizing that there are bigger issues related to safety also at play, he says.

That’s why customers should be made cognizant of long-term risks, he says, such as reduced car stability when cornering, premature tire wear and other factors.

Strobe says discussing these points can give customers a new perspective that can shift the conversation from a repair that’s needed for personal convenience to a matter of safety.

But it doesn’t have to be all talk. Strobe stresses the need for visuals to drive points home.

“It can be helpful to show on the vehicle what the parts do and how they improve the vehicle’s ride and handling.”

And keep it simple while highlighting why ride control service is necessary.

“Explain everything in an easy-to-understand manner, using plain language,” Strobe says, with the understanding that you’re building a relationship with the customer.

This may mean investing effort in an eventual sale versus an immediate sale.

EDUCATION MINDSET

“Have a mindset of education in everything you do,” says Strobe, who emphasizes the importance of making recommendations for future services before they’re needed, so that customers are more informed about what will be required at a later date. This also allows time for customers to deal with potential sticker shock.

“When a customer comes in for an oil change, use it as an opportunity to talk about repairs that will be needed down the road. By doing this, they won’t be surprised in six months when you tell them that they need new shocks.”

Strobe also says dealers should make sure customers have touch points to take home or materials around the shop to spark interest in services offered. “Consider creating educational posters and brochures to put in your waiting room.

Your customers can learn while they’re waiting for their vehicle to be serviced.”

On-site marketing materials can serve as a conversation starter to get customers engaged and asking questions. They’re a great way to proactively let customers know ride control and suspension services are available before an urgent need for repair arises and without the affront of a hard sales pitch, says Strobe. ■ MTD January 2025

1/13/25 12:05 PM

2405MT

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Business Insight

Five simple rules for sucess HOW TO START THE NEW YEAR IN THE RIGHT WAY By

Dennis McCarron

T

his should prove to be a decent year for the tire and automotive industry. Most economic signs outside of our control are pointing to steady growth or better. No one has a crystal ball, but the signs are encouraging.

Start off the new year right by abiding by the following five rules:

Rule 1: Reduce the number of rules everyone has to know in order to work in your business, yet raise your standards. By this, I want you to standardize good employee behavior and good employer behavior. Encourage your employees to be on time for work, be productive and safe in their roles, be kind to co-workers and customers and do what you ask them to do.

Rule 2: As an owner, you will work to listen to your employees first. Not only should you listen to employees’ problems, but you also should listen to their potential solutions and allow for the best decision to improve work. The best decision includes what’s best for your customers and employees.

Rule 3: Ensure that no employee breaks local or federal laws at any time. Ethical decision-making is a requirement of employment. If ever in doubt, encourage your employees to ask or research. Let them know that mistakes will be tolerated, but willful disobedience will not.

Rule 4: Over-communicate actions, both in telling and responding. Questions about rules should be read and understood. If not clear, the question should be about the rule’s meaning.

Rule 5: This business only works if the employer takes care of his or her employees. In turn, employees take care of the customers and customers take care of the company.

Everything else in your store should be in writing somewhere.

I’m talking about OSHA guidelines, employment law, first aid and emergency actions, hours posted, etc. And any skills on the job should be learned and demonstrated prior to working alone.

You should require rigid adherence to the above rules. Allow for earnest mistakes and what it takes to recover from those mistakes. This isn’t a high bar. Bakeries don’t allow rat droppings in their cake batter. Electricians don’t work with faulty equipment.

Bank tellers don’t scream obscenities at the top of their lungs.

Mistakes happen all the time. It’s your responsibility to discern right from wrong and proper from improper. It’s also your duty to then inform the employee of the correct action that’s needed. Deliver immediate feedback or provide it as soon as possible.

Disciplinary action is the same and can only be done with fi rst-person information. All else falls to “everyone is put on notice that this activity will be monitored, moving forward.”

Everything else comes after this. This includes how many rings 78

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I want you to standardize good employee behavior and good employer behavior at your dealership.

Photo: Lexi Majoros

of the phone are allowed before your salespeople respond, how they should qualify the customer and identify a vehicle’s problem before pulling it into your service bay, the courtesy of giving customers at least three tire choices and more. These things aren’t rules as much as they are job training.

We are experiencing the most dramatic contraction of available skilled workers I think we’ve ever faced since the 1980s.

And cars have never been more expensive to buy or fi x. A $75 oil change can go up in $10,000 smoke if everyone isn’t paying attention.

As an owner, all you can ask for is an honest effort. Yeah, we all pray for a hero to rise from the ashes of a chaotic day, but the reality is we can fi x anything before it gets broken and we can fi x most things after they get broken. But we can’t fi x broken humans, whether employees or customers.

And a final note: your dealership has to be physically safe and it has to be safe in regards to feelings and emotions. Not touchyfeely safe, but a level of safety that encourages employees to work hard for you and encourages consumers to do business with you.

In 2025, I’m asking you to only follow five rules. Give them a shot. ■ 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.

MTD January 2025

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Dealer Development

How to outperform the status quo IT FIRST TAKES A VISION THAT INSPIRES, MOTIVATES AND GUIDES By

Randy O’Connor

N

ot long after starting my career in the retail tire and auto service industry, I began wondering why the customer experience in our industry was so stressful and why our customers don’t connect with or speak highly of their experiences when compared with other retail industry segments.

Sure, I had poor experiences of my own with my first couple of cars and as a consumer, really didn’t like the experiences I had, but I chalked it up to a few poor performers. My experiences, come to find out, were in fact widespread and common.

Let’s pause for a moment. For those of you who disagree and believe our industry generally does an excellent job with customer service while providing excellent communication, clearly clarifying those expectations and delivering service with passion, I’m happy to agree to disagree.

For those of you who agree that customers largely view servicing their car as a negative experience and would like to be a part of the solution, I’d like to share a vision — something I call “the creedinme,” which has been defined as a system of beliefs that inspires and guides, with the goal of reaching a shared outcome. This vision solidifies us as industry leaders and allows us to surpass customers’ expectations by communicating well, setting and delivering on clear expectations and doing it all with passion and pleasure.

Before I paint that vision, I’d like to make an important distinction: there’s nothing wrong with any of your locations. They simply are what they are. So long as you and your customers are happy with the way you and your teams are delivering service and feel like there’s nothing more to give, it’s all good. Keep on keeping on.

On the flip side, I know there are many of us who deep down know, as an industry, that we can outperform the status quo and deliver a pleasant and memorable experience for our customers.

The vision I have is rooted in each of us accepting personal responsibility for our roles in the customer journey and its outcomes. It’s a vision where each of us commits to inspiring, guiding and motivating ourselves and others to make customers so happy with their experiences that a positive view of our industry takes shape.

When customers request information about products and services, they will immediately notice a difference. They will notice how happy and helpful we are. We’re more than happy to help guide them through their purchase. We patiently listen, confirm their request and patiently guide the customer to one or more options that will help solve what they are looking for.

We go out of our way to make sure all the bases are covered and we communicate exactly what the service experience will be like and why they should choose us. The appointment process is accommodating, simple and smooth.

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Once customers arrive at your facility, the environment gives them a positive feeling and disarms previous experiences. Your store is modern, clean, uncluttered and smells good. Customers notice a positive vibe in the air and they get an overall positive feeling. The greeting from your team members is prompt and welcoming. This is when the real differences start to take form.

Your team members not only confirm the customer’s requested services and delivery time, but they take it another step and inform the customer about how to best care for their vehicle.

Customers receive a list of manufacturers’ service recommendations. Customers are informed that your team will execute a thorough inspection of the vehicle and help them plan for any upcoming repairs. Once expectations are agreed upon, the customer is informed that a member of your team will be calling or texting them a mid-service update, helping keep them informed along the way.

‘The vision I have is rooted in each of us accepting personal responsibility for our roles in the customer journey and its outcomes.’

The mid-service update is super-important and happens on the front end of the service. The update includes a thorough review of the vehicle’s inspection, as well as the manufacturer’s service recommendations. The customer hears a professional opinion about the condition of their vehicle and is informed about any care needed to maintain optimal performance.

Finally, now that the customer has been kept in the know along the way and any new expectations have been clearly communicated, there are no surprises. The vehicle is ready when it was promised. The work order is fully updated prior to the customer’s arrival and a comprehensive review of the service is performed. Suggested services that were not performed have been documented, warranties for the services performed are clearly outlined and a warm, heartful thank you is given.

This is my vision. (“Creedinme” is a real thing.) I hope you and your team join me by inspiring, guiding and motivating ourselves and others to make customers so happy with their experiences that a positive view of our industry takes shape. ■ 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.

MTD January 2025

1/13/25 12:05 PM

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EV Intelligence

Why the Berlin Wall matters to a tire store GOVERNMENT, SHOPS AND SCHOOLS ALL PLAY A ROLE IN MAKING CHANGES By

Craig Van Batenburg

B

efore the pandemic, September meant Europe for my company, Automotive Career Development Center (ACDC).

Since 2007, Deb, my wife of 35 years, and I have flown to Europe, sometimes a couple times per year. We have been invited to teach in amazing places. As co-owners of ACDC, we have spent some time together when not working by enjoying what the area we are in has to offer. That has included the Netherlands, Germany, the Czech Republic, Ireland, Iceland, England, Poland, France, Spain, Portugal, Belgium and other fun places. I spot all the interesting cars and charging stations. Deb knows where to eat and what museum to visit.

A few years back, we found ourselves in Berlin for almost a week. After day four, it sunk in that East Berlin, where our hotel was, would not have been available to us 40 years ago. A wall did not keep me out. It kept East Berliners in. Open-mindedness is an ACDC value. It applies to our industry, electric cars, climate change and those whom ACDC serves.

In order to keep the wall down in our industry, technicians, tire store owners and managers must also be open-minded. If you just want a class about hybrid or electric car service, watch out as ACDC will challenge what you know. We will ask you to keep an open mind and “be a Berliner.”

Want to change your viewpoint about our educational system, what we drive, how we teach young automotive students, tools and pay plans? If you’re interested in growing an industry that values its people, its contributions and the air, ACDC is your kind of place — no walls, nothing to protect. You can take it all in when you work with us. We have a world view, so you don’t need to live in a bunker.

Let me make my case as to what is not working in our industry.

Generally speaking, auto techs feel they do not make enough money. Shops are having a harder time than before attracting and keeping automotive technicians. Cars are more complex than ever and even dealerships have a hard time fixing their own brands. There are three players that need to change. They are the government, OEMs/independent shops and schools.

Here is what local and national elected officials need to change: • They should require licensed techs and shops; • Make flat-rate illegal or have a big base pay; • Make community colleges free for two to four years and require a “master tech” license before graduation.

What OEMs and shops need to do: • Supply all the tools and tool boxes with a tax credit; • Have an internship and apprenticeship program.

What schools need to do: • Have a universal education plan from eighth grade up to to a bachelor’s degree.

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How will we get these things done? If government acts, it will take a decade or more to see the effects. By then, the licensing will shut down the illegal and incompetent shops and bad technicians will be doing something else. Technicians’ paychecks will be consistent. Money earned will reward great work. The partnership between shops and schools is a key part.

Shops must have licensed techs and so quality work is now front and center — where it should have always been. By supplying all the tools, the remaining technicians will take home more money because they won’t be giving the tool man part of their paycheck every week. A tax credit to the shop owner of $10,000 per-tech, per-year — up to $50,000 per tech total — would give the shop owner an incentive. Those techs who love their jobs can mentor and bring in the new techs that you will be able to hire because you supply the tools. This has another benefit as you can hire a poor kid with a rich brain.

‘In order to keep the wall down in our industry, technicians, tire store owners and managers must also be open-minded.’

The high schools and community colleges benefit as their funding must go up. If shops partner with the high school and really get involved, they can bring in an intern and when the best match is made, hire her or him and help them along the way.

After years of knowing this young star, they will be job-ready after they get their master license.

All three stakeholders — government, shops and schools — must do their part. Over time, the automotive repair industry will mature into a high-skilled job that anyone in America can aspire to and achieve, no matter what their situation. Tire dealers will have the workforce they need in the future.

Can we all move forward and make this industry better? Will customers recognize the hard work that technicians do every day to keep their vehicles safe and running well?

Yes, these are big ideas. But they are doable. ■ 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.

MTD January 2025

1/13/25 12:05 PM

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Focus on Dealers

At each anniversary celebration, Robert Bookout invites current and past Bookout Tire and Lube employees to celebrate in the fun. Pictured here are current and former employees, plus family members filling in for those who have passed.

Photo: Bookout Tire and Lube

Bookout Tire celebrates 50 years REPEAT CUSTOMERS KEEP SMALL TOWN DEALERSHIP GOING By

Madison Gehring

L

ike many tire dealers, Robert Bookout, owner of Etowah, Tenn.-based Bookout Tire and Lube, which celebrated its 50th anniversary in 2024, was introduced to the tire industry at a young age.

When Bookout was in high school, he worked at a service station in his hometown. After graduating, he decided to work at a corporation and quickly realized that it wasn’t for him.

He came back to the service station for about six months, then left and opened the first Bookout Tire and Lube location. (The dealership mainly sells tires and performs oil changes, on top of brake work and other minor auto maintenance services.)

Before diving head-first into opening Bookout Tire and Lube, Bookout, wondering if he would “make it” or not, sought advice from a family friend.

“He told me, ‘As long as you’re willing to work hard, are good to your customers and (are) honest, I think you can make a go of it,’” he says.

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For 50 years Bookout has followed the advice of a friend he consulted when he first opened his dealership. “He told me, ‘As long as you’re willing to work hard, are good to your customers and (are) honest, I think you can make a go of it.’”

Photo: Bookout Tire and Lube

ONGOING CELEBRATION

This isn’t Bookout Tire and Lube’s first anniversary celebration. “We had a 30-year and a 40-year celebration when we hit those milestones,” he says.

“Each celebration, we have the local

Christian radio station come do a remote broadcast at our location and we invite past and present Bookout Tire members to come hang out and eat.”

Bookout credits his team and customers for the longevity of his business.

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“The Lord has blessed us with a lot of good help over the years,” he says.

“And it’s all about treating your customers right. About 70% to 80% of the people who walk through our doors are return customers.”

That’s despite very little advertising, minimal internet exposure and having no company website.

At Bookout Tire and Lube, it’s all word of mouth.

“We live in a small town, right between Knoxville and Chattanooga.

Our biggest competition isn’t big box stores. It’s independents, like us.

“There are basically only two other places in our town and they do mainly all mechanical work.

“They don’t push tires and oil changes there. So even then, it’s not a huge competition between us.”

KNOWING YOUR INDUSTRY

About 30 years ago, Bookout says that he looked to add another location in the town of Athens, Tenn. “My wife and I prayed and talked about it, but it didn’t

come to pass and I think it was meant to be,” he says.

“I know a lot of successful businesspeople have multiple locations, but I just don’t feel that I was led to go that route.

Plus, I kind of like doing things myself and being hands-on.”

A big way that Bookout is hands-on is through the organization and cleanliness of his dealership.

“That is a big deal to me — that our dealership is clean and organized. I’m the guy who comes in early and mops all the bay floors. I enjoy doing it.”

Bookout has seen many changes over the years. He says 13-, 14- and 15-inch tires were the most popular tire sizes when he started.

“Now, you don’t sell any 13s and you rarely sell any 14s or 15s,” says Bookout, who adds that 17-inch through 20-inch tires have become more common.

He cites tire pressure monitoring systems as another major shift. “Years ago, you didn’t have this kind of technology and now every tire is made with this technology.”

Bookout says that one of his dealership’s biggest achievements is being debt-free.

“This really helps when we have an unexpected expense pop up. Like if we have a tire machine that goes down ... we are able to immediately pay for a new one because we are out of debt.”

THE LONG RUN

Bookout says treating customers fairly has allowed his dealership to build a loyal following, making price less of a factor.

“If we are $10 higher on an oil change than the place down the street, I’m really not that concerned because I feel like the impression our place gives and the way we treat customers ... people would rather have that than a cheaper price,” he explains.

Focusing on customer service is what Bookout, whose 70th birthday is approaching, wants to continue at his dealership.

“I’m in good health and I really, really enjoy it,” he says. “So I don’t plan on quitting!” ■

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Focus on Dealers Dave Bass, service manager at Scott’s U-Save Tire & Auto Repair store in Steiger, Ill., is celebrating his 40th anniversary with the dealership.

RESPECT IS KING

Bass says he learned this first lesson from Scott Templin, the late founder of Scott’s U-Save Tire & Auto Repair. His first job at the dealership, which was founded in 1981, was pumping gas.

In 1993, Scott’s U-Save Tire & Auto Repair expanded into a five-bay facility and turned into a full service auto repair and tire location. Bass then saw an opportunity to do more.

“I bugged (Templin) enough until he let me start selling tires,” says Bass. “And that’s how it all started.”

Bass says Templin showed a lot of confidence in him. “I really appreciated that confidence he had in me because he was like a mentor to me.

“I’ve always been treated with respect” by the Templin clan. “The family has always taken care of me and allowed me to do things with my sons as they grew up” and took on bigger roles at the dealership.

“They worked with me if I had to come in late in order to get the kids off to school or leave a few minutes early to take the kids to soccer practice. They have always taken really good care of me and that goes a long way.”

Photo: Scott’s U-Save Tire & Auto Repair

Secrets of service advisor success

A GOOD LISTENER

“My biggest challenge as a service manager has been making sure I hire the right people and retain them once we get them,” says Bass. “The key to keeping good employees is listening to them and not thinking you have the perfect answer.”

When you listen, he says, you can find out what’s working or not working and as a team tackle the challenge together.

“Dave has inspired everyone on our team to focus on customer service,” says Brad Templin. “Dave has lifelong customers because of the trust he builds with them and the respect he gives. Everyone sees this and knows it makes him successful.

“On top of this, Dave has an incredibly strong work ethic.

This is infectious to anyone within the building. Outstanding customer service with a tenacious work ethic has helped us when times are slow — through recessions, world pandemics and so much more over the past 40 years.”

To celebrate Bass’s longevity, U-Save Tire & Auto Repair hosted a week-long celebration at its Steiger location. ■

BASS SHARES WHAT HE’S LEARNED ACROSS FOUR DECADES By

Madison Gehring

D

ave Bass, service manager at Scott’s U-Save Tire & Auto Repair, has been with the Chicago, Ill.-area tire dealership for 40-plus years.

In that time, Bass — who works at the company’s store in Steiger, Ill. — says he has picked up on two main secrets to being an effective manager: treating employees with respect and being a good listener.

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TPMS

Chevy Silverado 1500 2021 ■

Fig. 1

Fig. 2

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1

2

1

1

3 2

DESCRIPTION AND OPERATION

The tire pressure monitor system warns the driver when a significant loss of tire pressure occurs in any of the equipped tires. If equipped, the Tire Fill Alert (TFA) feature 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. When the driver starts fi lling the underinflated tire, the corner lamp nearest to that tire will begin to flash. When the recommended pressure is reached, the horn sounds once and the turn signal lamps will stop flashing and briefly turn solid. If the tire is overinflated by more than 5 psi, the horn will sound multiple times and the turn signal lamp will continue to flash for several seconds after filling stops. When the recommended pressure is reached, the horn sounds once.

If a new sensor has been installed or tire rotated, the vehicle must be stationary for about 20 minutes before the system can start the process of calculating correct sensor locations. For this to happen, the vehicle will need to be driven at a speed greater than 12 mph for about 10 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 (ID) 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 are low.

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. The BCM cannot assume

Fig. 3

4

2 1

2

2 1

2

1

Fig. 4

Fig. 5

Fig. 6 Images: Mitchell 1

the tire pressures were maintained. Cars equipped with the driver information center will display dashes and the scan tool will indicate a default tire pressure value of 32 psi) for each tire. 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.

TIRE PRESSURE SENSOR LEARNING Tire PressureSensor Learn with EL-52545 (Preferred)

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

When using the EL-52545 each tire pressure sensor ID is learned to the EL-52545 and stored internally. The EL-52545 is then connected to the vehicle DLC using the OBD II Interface Module, which is part of the EL-52545 kit. The stored tire pressure

TORQUE SPECIFICATIONS Application

Specification/Metric (English)

Front and Rear Wheel Nut Torque

190 N.m (140 lb ft)

Tire Pressure Indicator Sensor Bolt

1.4 N.m (12 lb/in)

sensor information will then be loaded into the K9 Body Control Module. Using the EL-52545 to learn tire pressure sensors will prevent the vehicle from learning an errant nearby sensor from another vehicle in a service facility environment. This is the GM recommended method to learn tire pressure sensors.

1. Turn on EL-52545 2. Select RDR from the on-screen display Make sure the TPMS tool battery is sufficient to complete the TPMS learn process. Do not place the tool directly on the valve stem. The TPMS tool should be placed against the tire sidewall near the valve stem. The TPMS sensor learn activation procedure may have to be repeated up to three times before determining a sensor is malfunctioning.

3. If available, scan the QR code on the vehicle’s tire placard or certification label. If a QR code 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 tire pressure sensors do not respond: Replace the tire pressure sensor only after several attempts have been made to identify all sensors. An undetected sensor will be identified with “No Sensor MTD January 2025

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TPMS Detected” displayed in the table. After sensor replacement rerun RDR procedure.

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

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

7. Ignition On/Vehicle in Service Mode.

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

9. Verify the OBD II icon is displayed on the EL-52545 and the green LED is f lashing on the EL-52545 OBD2 Interface Module.

10. Connect the other end of the OBD II Interface Module to the vehicle DLC. 11. Select OK on the EL-52545 and follow the on-screen instructions.

Tire Pressure Sensor Learn with EL-50448 (Alternative)

When EL-50448 Tire Pressure Monitor

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

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

1. Ignition On/Vehicle in Service Mode: Using driver information center but-

tons, 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 the transmit indicator on the tool indicates the sensor activation signal is being transmitted. Wait for a horn chirp. If the horn does not chirp, repeat the sensor activation sequence. 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 the previous step for the remaining three sensors in the following order: Right front, right rear and left rear.

4. When the left rear sensor has been

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TPMS learned and a double horn chirp has sounded, the learn process is complete and the BCM exits the Learn mode.

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/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. Use a suitable tool inserted into the hole of the valve stem (3) to prevent it from rotating, as shown in Fig. 1.

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

7. Remove the tire pressure indicator

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sensor (2) by pulling it straight off the valve stem (3).

CAUTION: Do not scratch or damage the clear coating on aluminum wheels.

Scratching the clear coating could cause the aluminum wheel to corrode and the clear coating to peel from the wheel.

8. Remove and discard the valve stem (3) by pulling it through the wheel.

Installation Procedure

1. Before installation, verify the orientation of the valve stem (1) for the correct position of the tire pressure indicator sensor (2), as in Fig. 2.

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

3. Apply lubricant to the new valve stem.

4. Using a tire valve stem installation tool, pull the valve 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, as seen in Fig. 4.

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

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

7. Install and tighten the NEW tire pressure indicator sensor bolt (1).

8. Check that the valve stem (1) is concentric and completely seated in the valve stem hole of the wheel (2) as in Fig. 5.

9. Make sure there is a gap between the valve stem (1) and the tire pressure indicator sensor (2) as in Fig. 6. 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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Ad Index When you contact one of our advertisers please be sure to mention you saw their ad in Modern Tire Dealer ADVERTISER

PAGE

WEBSITE

1-800EveryRim OEM Wheels

14

www.1800everyrim.com

31 Incorporated

16

www.31inc.com

ACDC

85

www.fixhybrid.com

Aftermarket Auto Parts Alliance Inc.

45

info.myplace4parts.com

American Omni Trading

47

www.thunderertireusa.com

American Pacific Industries Inc.

25

www.xcomptires.com

ASA Automotive Systems Inc.

58

www.asaauto.com

Ascenso Tires North America

71

www.ascensotiresna.com

Atturo Tires

7

www.atturo.com

Autel

79

www.autel.com

Bartec TPMS

89

www.bartecusa.com

BKT USA Inc.

13

www.bkt-tires.com

Continental Tire

31

www.continentaltire.com

Convirza

73

www.convirza.com

Cosmo Tires

37

www.cosmotires.com

DRC Tires

77

www.drc-tires.com

Firestone Tire

53

www.firestonetire.com

First Choice Sourcing Solutions

67

www.gofcss.com

Fortune Tires

Front Cover Tip

www.fortunetireusa.com

Gaither Tool Company Inc.

75

www.gaithertool.com

Gripmax Tire

4-5

www.gripmax.com

Hunter Engineering Company

59

www.hunter.com/maverick

Independent Tire Dealers Group

49

www.itdgusa.com

Ingersoll Rand

83

www.irtools.com/g4911

K & M Tire

87

www.kmtire.com

Ken-Tool

86

www.kentool.com

Kenda Tires USA

IBC

www.kendatraction.rewardsloyalty.com

Landsail Tires

19

www.landsailtires.com

Linglong Americas Inc.

9

www.linglongtire.com

Maxxis Tires

57

www.maxxis.com

Mighty Auto Parts

81

www.mightyautoparts.com/brightline

Milestar Tires

17

www.milestarrebates.com

Nexen Tire America Inc.

55

www.nexentireusa.com

Nitto Tire U.S.A. Inc.

OBC

www.nittoenthusiastcircuit.com/apply

Nokian Tyres

35

www.nokiantyres.com/comingsoon

Plasteel, brand of WEGMANN automotive

21

www.plasteelwheelweights.com

Pre-Q Galgo Corporation

60

www.pre-q.com

Ranger Products

33, 65

www.rangerproducts.com

Rema Tip Top

90

www.kextirerepair.com

TireHub

27-28

www.tirehub.com

Transamerica Tire Company Ltd.

IFC

www.predatortires.com

Vredestein Tires

15

www.vredestein.com

Western Tires Inc.

61

www.jktyre-usa.com

WHI Solutions

69

www.nextpart.com

WIX Filters

91

www.wixfilters.com

Yokohama Off-Highway Tires America

41

www.yokohama-atg.com

ZC Rubber America Inc.

11

www.arisuntires.com

92

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