Modern Tire Dealer - August 2023

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WHY RETAIL SELLOUT REMAINS DOWN HOW TO KEEP DIAGNOSTIC WORK IN-HOUSE TIME FOR A REFRESHER? MOUNTING MISTAKES CAN COST YOU

AND THE TIRE INDUSTRY

August 2023 | Vol. 104, No. 8 | $10 | www.moderntiredealer.com

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The Industry’s Leading Publication

DEPARTMENTS 4 Editorial

Time for a refresher?

Mounting mistakes can cost you big-time

6 moderntiredealer.com News and navigation tools for MTD’s website

8 Industry News

Above wholesale WTD, Turbo are adding more than just new locations

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

18 Your Marketplace

Tire sellout is ‘becoming less bad’ Tier-two tires lose ground

58 Focus on Industry

Hankook focuses on longer mileage New iON EV tire comes with 50,000-mile warranty

60 Focus on Dealers

Warren Tire Service celebrates 40th anniversary Next generation is at work alongside 150 employees

August 2023, Volume 104, Number 8

F E AT U R E S 23 Artificial intelligence has arrived

Here’s how tire manufacturers, suppliers are using it

26 Implementing AI is all about training and education Three dealerships share their AI vision

32 ‘If you’re questioning AI, you’re already behind’

Artificial intelligence can help tire dealers, says expert

34 A 35-inch tire specialist

Jeeps and LT tires rule the day at Black Bear Off-Road

62 Focus on Dealers

38 ‘More professionalized’

64 Business Insight

42 How to keep diagnostic

Flynn’s Tire nears 30 retail stores New Ohio store is in high-traffic area

Roadmap for success Embrace these changes to ensure a profitable 2023

66 Mergers and Acquisitions

ESOPs as an exit alternative Identifying the ideal indicators, benefits and pitfalls

70 Dealer Development

What happens when you ask more of your customers Having higher expectations is a two-way street

72 EV Intelligence

Making the leap How the government can help you move to EVs

74 Products 76 TPMS Alfa Romeo Stelvio — 2023

78 Ad index

Constant investment helps Canada Tire seize opportunities

work in-house

Focus on the right tools — and don’t forget training

Commercial Tire Dealer™

44 Completing the puzzle Bill Morgan Tire has opened a retread shop

46 Continental’s digital solutions Company also previews new truck tires

48 Safe service is good service Rice Tire says service truck tech safety takes lots of ‘vigilance’

50 AG Tire Talk:

Implement tire trends

Radial and VF technology are making inroads in the category

On the cover: Photo: dem10 | 1390124637 | Gettyimages.com Modern Tire Dealer is a proud member of:

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

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Editorial

Time for a refresher?

MOUNTING MISTAKES CAN COST YOU BIG-TIME By

Mike Manges

I

n case you missed it, an “automotive YouTuber” — it pains me to even type those words — recently posted a video describing how the extremely expensive carbon fiber wheels on his Corvette Z06 were damaged by technicians at a car dealership during the tire mounting process.

A quick Google search will pull up more information about this incident, if you’re interested. For the record, the damage to the wheels was cosmetic, not structural, and had “nothing to do with” the car dealerhip itself, in the YouTuber’s own words.

The situation, however, does raise a question, which I’ll now pose to you: “What process does your dealership use when mounting expensive, high-end tire and wheel combinations?”

And I’m not just talking about carbon fiber wheels, which, as you might suspect, represent a small part of the total wheel universe. I’m talking about any set of wheels and tires that your technicians touch.

Mounting mishaps are more than embarrassing. They can be expensive. And they can hurt your dealership’s reputation.

How do you prevent a situation like the one described in the opening paragraph of this column? To learn more, I reached out to Hunter Engineering Co., which put me in touch with Jim Hudson, one of its product managers.

His first piece of advice for technicians is to take it slow.

“Speed isn’t the priority here,” Hudson told me. “Slow down and pay attention to the basics, like proper lube, toolhead position and drop center location. This is important for all wheels, but especially when the consequence of damage far outweighs the time spent on extra care and attention.

“Also make sure your equipment is in good shape and use the assist devices — rather than a bar — to act on the tire.”

Getting a little more granular, clamping is “the main consideration,” he said. “You will need a clamp center tire machine.

Some carbon fiber wheels have aluminum inserts at the center bore, which are suitable for the usual center cone method.

“If a wheel has carbon fiber at the center bore, you must use a flange plate to clamp against the lug seats. Rim clamp machines are completely unsuitable for carbon fiber wheel service.”

Who is working on the wheels also matters, according to Hudson. “Unless your shop specializes in aftermarket or high performance tire service, I’d suggest routing these jobs to your more experienced — or at least, more careful — technicians.”

I also wanted to get a tire dealer’s perspective on the issue, so I called Mike Gust, owner of American Wheel & Tire, an extremely successful, Houston, Texas-based dealership that specializes in custom wheel work. American Wheel & Tire regularly installs tire and wheel packages on Lamborghinis, Rolls Royces, Bentleys, Austin-Healys and other exotic cars. (“We recently worked on a $500,000 McLaren,” Gust told me.)

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When it comes to working on expensive tire and wheel combinations, the basics still apply, says Jason Alexander, store manager at American Wheel & Tire in Houston, Texas.

Photo: American Wheel & Tire

Gust referred me to Jason Alexander, his store manager, who echoed much of what Hudson said. “It really boils down to putting your best guy on it and making sure he’s more than capable of doing the job well,” said Alexander.

“With those kinds of wheels, there’s no leeway. If you damage them, they’re pretty much gone. When you’re talking about $5,000-a-piece wheels, you want to make sure that whoever is working on them knows what they’re doing.”

Like other rims, carbon fiber wheels, in and of themselves, “aren’t hard to work on. You just have to be extremely careful — doing everything you can to not damage them in any way.

We use regular touchless machines — the same machines we use for every wheel and tire we mount.”

Owners of expensive vehicles — and there is a sliding scale when it comes to expectations, according to Alexander — “expect everything to be perfect, all the time. These people want to deal with people who they know can handle the work.”

Alexander agreed that time is not of the essence. The target turnaround time “is however long it takes. I tell the customer, ‘Drop off the car and I’ll call you when it’s ready. It’s going to take extra time because of the extra care involved.’”

This helps set customer expectations at a manageable level and places the emphasis on doing the job well, rather than quickly.

If you haven’t brushed up on proper tire and wheel mounting procedures lately, now is a good time. It will save you money, as well as unnecessary blows to your business’ standing, which you’ve worked so hard to build. ■ If you have any questions or comments, please email me at mmanges@endeavorb2b.com.

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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, Google Podcasts, iHeart Radio, Amazon Music, Audible and MTD’s website. Download it today!

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3515 Massillon Rd., Suite 200 Uniontown, OH 44685 (330) 899-2200, fax (330) 899-2209 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: Erica Paquette Production Manager: Karen Runion, (330) 736-1291, krunion@endeavorb2b.com

Big Brand Tire & Service is among the tire dealerships steadily adding to its store count, with more than 30 new stores in a 12-month period.

Photo: Big Brand Tire & Service Inc.

Studying the MTD 100 Once a year, we publish the MTD 100, our list of the 100 largest independent tire dealerships in the U.S. It’s a big undertaking, but we also know readers like to see the rankings and the changes that affect the list from year to year. This year was a year of big changes among those 100 tire dealerships — including a new No. 1 — and it’s no surprise that MTD readers are paying attention. (If you missed the list in our July issue, you can find the digital edition with the full list on our website.)

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MTD 100 offers exclusive look at biggest dealerships Photos: Tire Distributors of Georgia flexes with fun marketing Southern Tire Mart expands in California Mavis has ramped up acquisitions Goodyear makes agreement with Elliott Investment Hank’s Tire: A $10 million store The big get bigger on the MTD 100 Why the truck tire market is slowing down What’s next for Turbo Wholesale Tires?

The single store acquisition challenge

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

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ACCOUNT EXECUTIVES Bob Marinez rmarinez@endeavorb2b.com (330) 736-1229 Marianne Dyal mdyal@endeavorb2b.com (706) 344-1388 Dan Thornton dthornton@endeavorb2b.com (734) 676-9135 Sean Thornton sthornton@endeavorb2b.com (269) 499-0257 Kyle Shaw kshaw@endeavorb2b.com (651) 846-9490 Martha Severson mseverson@endeavorb2b.com (651) 846-9452 Chad Hjellming chjellming@endeavorb2b.com (651) 846-9463 MTD READER ADVISORY BOARD Rick Benton, Black’s Tire Service Inc. Jessica Palanjian Rankin, Grand Prix Performance John McCarthy Jr., McCarthy Tire Service Co. Inc. Jamie Ward, Tire Discounters Inc. CUSTOMER/SUBSCRIPTION SERVICE (877) 382-9187 moderntiredealer@omeda.com ENDEAVOR BUSINESS MEDIA, LLC CEO: Chris Ferrell President: June Griffin CFO: Mark Zadell COO: Patrick Rains CRO: Reggie Lawrence Chief Digital Officer: Jacquie Niemiec Chief Administrative and Legal Officer: Tracy Kane EVP Transportation: Kylie Hirko VP Vehicle Repair: Chris Messer

Modern Tire Dealer (USPS Permit 369170), (ISSN 0026-8496 print) is published monthly by Endeavor Business Media, LLC.1233 Janesville Ave., Fort Atkinson, WI 53538. Periodical 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 600653257. 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 2023 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.

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Industry News

Above wholesale

WTD, TURBO ARE ADDING MORE THAN JUST NEW LOCATIONS

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wo southern California-based wholesale distributors — Wholesale Tire Distributors (WTD) and Turbo Wholesale Tires — aren’t just investing in new locations. They’re also rolling out new products at the national level.

WTD recently relocated its headquarters to a new, state-of-the-art facility in Los Angeles, Calif..

The new facility spans 300,000 square feet and “symbolizes WTD’s commitment to growth and innovation in the tire industry,” according to WTD officials “Ara Tchaghlassian, the visionary behind WTD, has ambitious plans for the future.

“In line with this relocation, Ara aims to stock an astounding 700,000plus (tires) nationwide, ensuring an unmatched variety and availability from private label brands, such as Arroyo Tires and American Roadstar Tires,” both of which WTD owns and markets.

“Moreover, WTD is rapidly expanding its presence in different states across the U.S., including Pennsylvania and Kentucky.

As part of its strategy, WTD also is growing its Arroyo and American Roadstar lines.

The Arroyo line is expanding to cover more than 300 SKUs, “ensuring customers have a wide selection to choose from.”

New products hitting the market this year include the Arroyo Runflat tire and an electric vehicle (EV)-focused product.

WTD also added 19-, 20-, 21- and 22-inch sizes to the Arroyo passenger tire line.

In addition, the company reports it has made “impactful strides in sales, catering to the heavy-duty commercial vehicle segment.”

WTD’s expansion of its Arroyo TBR line “ensures that WTD customers have access to a wide range of sizes, catering to various vehicle types and preferences.”

WTD projects that by the end of 2023, “the combined sales of these brands will reach $200 million worldwide.”

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“As an owner of multiple brands, we also want to continue to introduce new products that consumers want,” says Phillip Kane, CEO of Irwindale, Calif.based Turbo Wholesale Tires.

Photo: Turbo Wholesale Tires

TURBO ON THE MOVE

Irwindale, Calif.-based Turbo, which was acquired by Kingswood Capital Management last year, has had a busy summer.

In June, Turbo acquired Tire Wholesalers Inc. (TWI), a Michigan-based distributor with locations in its home state, plus Salt Lake City, Utah, and Chicago, Ill. Later that month, Turbo announced eight new tire lines — four of which are available now.

Turbo recently unveiled the eight new lines — and more than 300 new SKUs — at a gala event for its Los Angeles, Calif.-area customers.

Of the four lines available now, one is an EV tire, the Voltec, in Turbo’s Lexani Tire brand, that’s available in ultra-high performance and touring sizes.

There’s also a new, rugged terrain tire in Turbo’s RBP brand; a third-generation M/T tire, the RBP Tire M/T 3; and a wide-ranging Lexani brand run-flat tire, the RFX. All four lines will include more than 30 sizes in the first phase of their launch, according to Turbo officials.

Upcoming products include a premium, 50-SKU TBR line in the RBP brand; re-engineered RBP brand S/T and H/T tires; and Turbo’s first-ever A/T product, also under the RBP brand.

Turbo officials say the tires will be available in time for the 2023 Specialty Equipment Market Association Show in November.

Turbo also has become an approved vendor for the Independent Tire Dealers Group LLC. Tire industry veteran Phillip Kane, Turbo’s CEO, recently told MTD that the company is focused on “adding value to our customers’ businesses.

“We’ve made significant investments in our product portfolio, as well as our people, processes and infastructure, to allow our customers to make higher profits and to serve them how and when they want.

“We’ve grown our unit volumes and share considerably in our first six months (of the year), as a result.

“We want to continue to add products, brands, capabilities and points of distribution that add value for our customers,” said Kane.

“As an owner of multiple brands, we also want to continue to introduce new products that consumers want and we want to bring those products to market really quickly.”

Commenting on the possibility of more acquisitions, Kane told MTD that “first and foremost, our current focus is on completing the integration of Turbo and TWI as smoothly as we can to not disrupt any of our customers, vendors or associates and to ensure we are delivering the benefits of the combination to all these important constituencies as quickly as possible.

“Going forward, we have plans to continue to grow, as we have a strong desire to make our brands and products more accessible to more consumers.

“We expect to do that both organically, as well as through additional acquisitions,” he said. — Mike Manges MTD August 2023 8/8/23 12:26 PM

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Industry News

Bites Dealers create marketplace The California Tire Dealers Association (CTDA) has announced a consumer-facing online tire marketplace for its members.

TireTutor, a sponsor of CTDA, developed the website, which will allow consumers to locate member dealers in their area, view real-time inventory, complete a tire purchase and schedule an installation appointment with their chosen dealer.

Skidmore to run Big O Tires TBC Corp. has named Gary Skidmore senior vice president and general manager for its Big O Tires franchise business, succeeding Brian Maciak. Skidmore has spent 38 years in the industry, including 20 years with TBC, most recently as divisional vice president.

Telle Tire expands again Telle Tire & Auto Centers has opened its 20th store — a location in Webster Groves, Mo., that also will serve as the dealership’s new corporate office. The company also has acquired two more locations in the Kansas City market with the purchase of Auto Clinic, a two-store operation in Lee’s Summit, Mo.

GreatWater buys dealer

TGI opens Cosmo Tires retail store

T

ire Group International LLC (TGI), in partnership with Paul’s Tire Services of Hollywood, Fla., has opened its first Cosmo retail store.

TGI owns and markets the Cosmo brand.

The state-of-the-art, 8,000-square-foot facility “marks a significant milestone for Cosmo Tires, as it showcases an enhanced tire shopping experience for its customers,” according to TGI officials.

“Designed with innovation and customer The state-of-the-art, satisfaction in mind, the new Cosmo Tires retail 8,000-square-foot facility “marks store offers modern architecture and inviting a significant milestone for Cosmo Tires, as it showcases ambiance as the store promises a welcoming an enhanced tire shopping and comfortable atmosphere for all visitors. experience for its customers,” “The store is stocked with the entire Cosmo according to TGI officials. product range, catering to a wide range of Photo: Tire Group International vehicles, from passenger cars to commercial trucks. There are also other renowned brands that customers can choose from, offering a comprehensive range of options — ensuring they find the perfect fit for their specific needs.

“The store is staffed by a team of knowledgeable and friendly experts, ready to assist customers with any inquiries and provide personalized recommendations based on their driving habits and preferences.”

“We are thrilled to unveil our first, state-of-the-art retail store,” says Tony Gonzalez, the CEO of TGI, which is based in Miami, Fla. “Our goal is to make tire shopping easier, more enjoyable and ultimately, more rewarding for our customers. With cutting-edge technology and a passion for customer satisfaction, we are confident that our retail concept will present a uniform brand image that reflects Cosmo’s value and innovation.”

GreatWater 360 Auto Care recently acquired two Herold Family Auto & Tire stores. Herold Family Auto & Tire is based in Medina, Ohio, while GreatWater calls Grand Rapids, Mich., home.

Belle Tire hits 25 in Chicago Belle Tire Distributors Ltd. has opened its 25th retail store in the Chicago, Ill., market — a location in Palatine, Ill. The new store gives Belle Tire nearly 180 locations.

ASTE event set for fall The Automotive Service and Tire Alliance’s automotive trade show, Automotive Service Technology Expo, is heading to Durham, N.C. on Sept. 28-30. The trade show features three days of training and networking opportunities and will include guest speakers Tom Greco, CEO of Advance Auto Parts, and Stuart Schuette, the CEO of American Tire Distributors Inc.

Twelve vie for TIA board Tire Industry Association members can cast votes through Sept. 1 to fill four seats on the board of directors. There are 12 candidates, including one incumbent.

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Mitsuhata named chairman and CEO of Toyo Americas

Tatsuo Mitsuhata atsuo Mitsuhata has been appointed has been appointed chairman and CEO of Toyo Tire chairman and Holdings of Americas Inc. (TTHA), CEO of Toyo and Nobuo Yoshida has been appointed Tire Holdings of president and chief operating officer. Both Americas Inc. appointments were effective Aug. 1.

Photo: Toyo Tire Holdings of Americas Inc. Mitsuhata will continue as director, vice president and corporate officer of sales headquarters. A 35-year Toyo veteran, Mitsuhata has served as president and CEO of Toyo Tire U.S.A. Corp. and of Toyo Tire Europe GmbH. Yoshida previously served as TTHA’s senior vice president, strategic planning and supply chain management. During his 21 years with Toyo, Yoshida has worked as managing director of Toyo Tyre (UK) Ltd. and sales director of Toyo Tire Europe GmbH. He also was assigned to Toyo Tire U.S.A. Corp. from 2005 to 2011.

Their appointments come as Iori Suzuki, chairman, president and CEO, is retiring after 18 years of service at TTHA. Suzuki was involved in establishing Toyo’s first U.S. tire manufacturing plant in White, Ga. He was appointed TTHA’s president and Toyo’s corporate officer in 2016. The company says “Suzuki’s exemplary strategic skills, dedication and focus have played an integral role in the growth of Toyo Tire’s North American operations.”

MTD August 2023 8/8/23 12:26 PM

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Industry News

Bites Rivero to replace Bily at ITDG Sherry Bily, director of programs and pricing for the Independent Tire Dealers Group LLC (ITDG), will retire at the end of the year and will be succeeded by Francisco Rivero. He most recently worked as a wholesale manager for East Bay Tire Co. and has more than a decade of experience as a purchasing manager and general manager.

Titan’s Reitz wins award Paul Reitz, CEO of Titan International Inc., was recentlty named Ernst & Young’s Entrepreneur of The Year 2023 Midwest Award winner. Candidates were judged based on their ability to build long-term value through entrepreneurial spirit, purpose, growth and impact.

Groupe Touchette buys Fastco Group Touchette Inc. has acquired Fastco Canada, a Quebec-based wheel manufacturer and distributor. Group Touchette says Fastco will allow it to expand its service offering to customers, while also giving Fastco access to new markets.

Hunter opens training center Hunter Engineering Co.’s 47th training center has opened on the Lincoln Tech Denver campus. This is the first school to house Hunter’s 35,000-pound, four-post heavy-duty lift.

Promotive helps with hiring Promotive, a new automotive recruiting company, announced a full-service automotive staffing solution to connect automotive talent with automotive shops. The company has dedicated recruiters and account managers who work as a shop’s in-house recruiting partner.

Heavy Duty Tire expands Heavy Duty Tire LLC has opened a location in the Houston, Texas, area and another outlet in Milford, Va. The company offers ready-to-ship tire and wheel inventory for popular rental equipment, including skid steers, loaders and boom lifts.

ATD adds mileage policy American Tire Distributors Inc. has upgraded its Ironman Limited Protection Policy to include mileage coverage. The policy covers up to 55,000 miles on Ironman branded passenger and light truck tires.

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A

Goodyear makes agreement with Elliott Investment

s part of a “cooperation agreement” with Elliott Investment Management L.P., Goodyear Tire & Rubber Co. has agreed to appoint three new members to its board of directors and create a “strategic and operational review committee.”

Elliott had sought representation on the board in a May letter to Goodyear where it called for changes to help the company “realize its full potential.”

The new independent board members include: • Joseph Hinrichs, president and CEO, CSX Corp.; • Max Mitchell, president and CEO, Crane Co., and; • Roger Wood, former co-CEO, Tenneco Inc.

The additions bring the total board to 15 members. Goodyear will nominate up to 12 directors to stand for election at its 2024 annual meeting, including these three appointees.

The five-person strategic and operational review committee will be chaired by Goodyear Chairman, CEO and President Rich Kramer.

It also will include James Firestone and Thomas Williams, as well as two of the newly appointed board members — Max Mitchell and Roger Wood. The committee is expected to hold its first meeting by Aug. 18.

Mitchell also will join Goodyear’s finance committee, while Wood will join the audit committee.

Goodyear will make the committee’s non-confidential recommendations on operational matters public by Nov. 15.

In a press release, the Akron, Ohio-based tiremaker said the committee reviews “will Goodyear’s Rich Kramer will chair be supported by Goodyear’s financial advi- an operational review committee that is due to release recommendations sors and a leading consulting firm.”

by Nov. 15.

Kramer called the dialogue with Elliott Photo: Goodyear Tire & Rubber Co. “constructive” in describing the appointment of the three new board members.

In a statement, Marc Steinberg, Elliott senior portfolio manager and Austin Camporin, portfolio manager for Elliott, said, “We are pleased to have collaborated with Rich and the board on the formation of the strategic and operational review committee and the addition of three new independent directors to Goodyear’s board. Goodyear is an iconic brand and business that is well positioned to benefit from industry tailwinds. We have been encouraged by Goodyear’s openness to taking actions necessary to realize its full potential and we are confident that our agreement enhances governance at Goodyear and ensures that the company will remain focused on long-term shareholder value creation.”

The agreement between Elliott and Goodyear will remain in place for one year, through July 25, 2024.

Bridgestone monitors tires with Pilot

M

ore than 300 Pilot and Flying J travel centers are equipped with Bridgestone Americas Inc. routers in their fuel awnings that connect to tire sensors and provide fleets with real-time tire condition data.

Since the launch in July 2022, commercial fleets have reported both efficiencies and savings from the Bridgestone Fleet Care service. One fleet, Watsontown Trucking Co., manages more than 475 tractors and 1,200 van trailers.

The company says it has saved 867 labor hours on pre-trip and safety lane inspections and also has realized a 10% reduction in emergency roadside incidents, eliminating nearly 1,300 annual breakdown hours.

MTD August 2023 8/8/23 12:26 PM

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Industry News

Bites TIA updates committee The Tire Industry Association (TIA) has elected Russ Devens of McCarthy Tire Service Co. Inc. as its secretary, while TJ Trum of Pomp’s Tire Service Inc. was elected treasurer. Trum replaces Mike Wolfe of Southeastern Wholesale Tire, who is stepping down after seven years as treasurer and 14 years on the TIA board.

BendPak to add more space BendPak Inc. is developing 33 acres in Mobile County. Ala., to expand its light manufacturing, assembly, product development and testing and distribution footprint. The industrial complex will also house additional space for marketing and sales support teams.

AI help for technicians Diagnostic Network has created an AI-powered assistant, AiDN, designed to provide diagnostic advice to professional automotive technicians. It can help with troubleshooting and also optimize vehicle repair processes.

Kenda hires Fitzgerald American Kenda Rubber Co. Ltd. has added Shaun Fitzgerald to its automotive sales team as sales manager. He has more than 30 years of experience in the tire industry and will be responsible for managing strategic accounts, driving channel sales and identifying new growth opportunities in the eastern U.S.

GRI buys ATRA An acquisition in Hungry is expected to help Global Rubber Industries Pvt. Ltd. (GRI) expand its reach across Europe.

ATRA Kecskemet has served the material handling, agriculture and construction industries for 30-plus years.

Snap-on updates website Snap-on Inc. updated its online diagnostic training and support to help technicians with the SOLUS+ scan tool. Nine modules teach technicians how to maximize the tool during the diagnostic process.

Pirelli hits milestone Pirelli officials say the company’s new P Zero E is the first ultra-high performance tire that contains more than 55% natural and recycled materials. The tire is designed for battery-powered vehicles.

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I

Associations square off over Right to Repair

n July, the Automotive Service Association, the Society of Collision Repair Specialists and the Alliance for Automotive Innovation issued a joint statement saying they had entered into a “landmark agreement” in support of Right to Repair and that the pact would guarantee “consumer choice in automotive repair.”

The combination of three automotive associations’ support of Right to Repair legislation seems like a big win, especially when one of those groups represents original equipment manufacturers, but other groups have stepped in to say the OEM support isn’t as it appears.

The Alliance for Automotive Innovation’s membership includes many OEMs, a group that has traditionally been opposed to Right to Repair efforts. And the Automotive Service Association has been opposed to past Right to Repair legislative efforts.

The three groups said their commitment “affirms a 2014 national agreement A Right to Repair pact among three on automotive right to repair and states industry groups has created a stir, unequivocally that ‘independent repair with other organizations saying it’s not the deal it appears to be. facilities shall have access to the same Photo: Scott Galvin diagnostic and repair information that auto manufacturers make available to authorized dealer networks.’”

The groups said the “commitment was created with our mutual and valued customers in mind: vehicle owners. It affirms that consumers deserve access to safe and proper repairs throughout a vehicle’s lifecycle (and) it is built to last because it anticipates changes in automotive technologies and market evolutions.”

The groups said the agreement included access to diagnostic and repair information, education and training and future advancements.

But the Auto Care Association took exception to the other groups’ joint statement.

The Auto Care Association called it “a thinly veiled response by the automotive OEMs to HR906: The REPAIR Act. While the agreement purports to be relevant, all it does is affirm the 2014 Memorandum of Understanding rather than implement a meaningful solution to preserve the entire automotive aftermarket and the competition and consumer choice that it creates.”

The Auto Care Association says the three-party pact is “designed to create confusion,” and is flawed because it’s non-binding for OEMs and doesn’t include all automakers. (It noted Tesla is not included and that there’s no requirement for new automakers to join.)

Additionally, in a separate message, the Tire Industry Association (TIA) said it doesn’t support the pact between the Automotive Service Association, the Society of Collision Repair Specialists and the Alliance for Automotive Innovation.

“While TIA acknowledges the positive intent and certain aspects of the agreement, the current pact falls short in adequately addressing the concerns of consumers and protecting their rights along with those of the independent automotive repair market,” said Roy Littlefield IV, TIA’s vice president of government affairs.

TIA noted that it is especially concerned about the lack of “an enforcement mechanism and the power of law within the pact.”

“TIA firmly believes that any meaningful right-to-repair initiative must possess robust enforcement mechanisms to safeguard consumer rights effectively,” Littlefield said.

The Auto Care Alliance has subsequently expressed its opposition to the pact and in a statement asked “why one of the parties to the ‘pact’ has flipped positions after being vehemently opposed to Right to Repair for over 20 years. The Automotive Service Association has repeatedly voiced its opposition to Right to Repair and their reasons for opposing in the past have not been addressed in this new pact.” ■ MTD August 2023 8/8/23 12:26 PM

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www.yokohama-oht.com

Drills

EPT

IANCE ALL

LE

O

The Alliance Whole Farm concept is a mindset of developing and promoting future-friendly tire options for every machine that touches the farm field. Through our Alliance brand, Yokohama Off-Highway Tires America, Inc., delivers low-pressure, high-performance tires for nearly every wheel on the farm, minimizing soil compaction in the field while also helping farmers maximize productivity and return on investment.

Planting Planters Air seeders

WH

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Pre-Plant Pull-behind fertilizer spreaders Manure tankers Tillage equipment

NC

TIRES THAT PROTECT THE WHOLE FARM

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Harvest

Sprayers Cultivators

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Contact your Yokohama Off-Highway Tires America rep to learn more about our 2023 spring dating specials. For more on our thousands of SKUs for nearly any tire need on farms and ranches, ask your rep, call 1 (800) 343-3276 or visit yokohama-oht.com.

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NumbersThatCount

Relevant statistics from an industry in constant motion

144

Number of company-owned Monro Inc. stores in the state of New York, the most of any state.

Source: Monro Inc. Photo: Monro Inc.

22.4 MILLION

6

Forecast for replacement truck tire shipments in 2023.

Number of sedans in the top 10 of all vehicles sold by Carvana in the first half of 2023.

Source: USTMA

Source: Carvana

Photo: MTD

Photo: American Honda Motor Co. Inc.

932

$26.2 BILLION

Source: National Highway Traffic Safety Administration

Source: National Automobile Dealers Association

Photo: 7781316 © Proseuxomai | Dreamstime.com

Photo: MTD

Number of vehicle safety recalls in the U.S. in 2022.

The tre des Ou Cel

Value of mechanical service sold by new car dealerships in 2022.

Lan

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MTD August 2023 8/8/23 12:26 PM

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THE LANDSAIL STORMBLAZER HYBRID TIRE IS S P E C I F I C A L LY DESIGNED FOR THESE POPULAR OE FITMENTS: Toyota RAV4 Toyota Highlander Subaru Outback Subaru Crosstrek Honda CR-V Jeep Renegade Jeep Cherokee Mazda CX-5 Nissan Rogue Ford Escape

The Stormblazer Crossover is a hybrid tire by Landsail, with an aggressive sidewall and tread pattern, created for popular vehicles in over 70 popular sizes. With dual sidewall design options and a 55K Mileage Warranty, this tire delivers the durability you expect.

Our most popular sizes are also available with a 12-Ply rating (specific sizes only).

Celebrate the spirit of adventure with the new Stormblazer Crossover tire.

Landsailtires.com | @landsailtires

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Yo u r M a r ket p l a ce

Tire sellout is ‘becoming less bad’ TIER-TWO TIRES LOSE GROUND By

John Healy

W

hile still negative on a year-over-year basis, our view is that retail sellout sa les have begun to slowly inch closer to flat. June represents a seventh consecutive month of negative retail sellout, though the rate of decline slowed to just -0.5% for the month. And there are good reports in the regions. The Southwest region reported the strongest trends for the fourth straight month, up 2.5% yearover-year. Dealers in the Mid-Atlantic also reported positive gains, up 1.3% year-over year. The Northwest reported the softest numbers, falling an average 6.3% in June.

We would describe tire sellout as “becoming less bad.” In April, dealer contacts reported sellout was down 4%, year-over year. In May, it was 2% and in June, it was 0.5%.

The deferment cycle for auto repair seems to be driving some positive momentum. And while the overall inflationary environment has dampened retail sellout levels for the last year, dealers say some deflationary effects are working their way into the market, with some price cuts entering the picture. Given this, as well as the lapping of softer comparables in the second half of 2022, we would not be surprised to see sellout levels turn positive.

Looking to miles driven, trends strengthened for a fourth straight month.

It’s the first occurrence of four straight months of positive trends since December

2021 to March 2022. Our miles driven momentum index registered a 3.5% yearover-year increase in June, beating the 3.2% year-over-year increase in May. And we can see that miles driven through the week of July 4th grew 5.1%.

Given these improvements in our miles driven index, we believe the tire replacement industry is beginning to see some positive tailwinds, which have been largely absent thus far in 2023.

Another good sign is that raw material costs have continued to decrease. The basket of raw materials needed to build a basic replacement tire have fallen 17% year-over-year as of June and slipped 1.9% from the prior month.

IMPROVEMENT IN DEMAND

Dealers indicate consumer demand for passenger and light truck replacement tires turned positive on a net basis, compared to June 2022 numbers. Eleven percent of our dealer contacts saw positive demand trends in June, a sequential step up from the -83% and -43% reported in April and May, respectively. And for the second straight month, dealers tell us the consumer deferment cycle has begun to shift towards the positive end of the spectrum.

While this theme, driven by the overall inflationary environment, has served as a governor to demand trends for several months, it appears the pendulum has begun to swing in the other direction, driving higher volume of both repairs and tire sales.

Snapshot of Dealer’s PLT Tire Volumes (Year-Over-Year Change) Apr22

May22

Jun22

Apr23

May23

Jun23

Average

Increase

16%

17%

29%

0%

29%

45%

40%

Flat

17%

33%

14%

17%

0%

22%

27%

Decline

67%

50%

57%

83%

71%

33%

33%

Total

100%

100%

100%

100%

100%

100%

100%

SOURCE: NORTHCOAST RESEARCH ESTIMATES

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June marked the first month of net positive demand since our November 2022 survey.

Given the sequential improvement in sellout, a positive month of demand trends, improvements in vehicle miles traveled and positive indicators regarding consumer deferment, we do see clearer skies on the horizon for the industry.

We are of the view that volumes in the long run will become aligned with the current level of GDP growth. While recessionary fears still loom, we proceed with caution in our view that GDP can remain positive and thus drive positive retail momentum in the months ahead.

A LOOK AT TIERS

Tier-one tires were the most in-demand from consumers during June, marking three straight months of sequential improvement. Dealers say as the consumer deferment cycle has begun to shift positively, consumers are opting for more premium tires. And while tier-one tires took the top spot in our rankings, tier-three brands were the second most in-demand for a second month in a row. Tier-two demand greatly softened, falling from the most in demand a month ago to the least demand in June. It’s a stark contrast from trends a year ago, when tier-two tires led the way for both May and June.

We note this is different from our historical tier rankings, as tier-two brands have ranked the highest over the previous one-, three- and 10-year periods. But in the current environment, some consumers are opting for premium tier-one brands, while more consumers are opting for low-cost alternatives rather than the tier-two options. ■ 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.

MTD August 2023 8/8/23 12:29 PM

TIRE EVOLUTION FOCUS: OFF-HIGHWAY TIRES There are many factors that distinguish BKT:

AGRICULTURE Whether you are a farmer or a farming contractor, you need reliable tires to get the most out of your advanced farming equipment for your specific job in a sustainable way.

INDUSTRIAL Whether it is loading or excavating, lifting or material handling, you are looking for reliable highperformance tires so that you can do your job in full safety.

First of all, the super extensive tire range that is second to none.

BKT is always on the ball when it comes to latest industry trends that are closely linked to the development in the equipment industry. Close contacts to Original Equipment Manufacturers as well as the direct dialog with end users are essential.

Right for this purpose, BKT is amazingly active in many sport sponsorships across the globe. BKT has, indeed, been Official Tire Manufacturer of Monster Jam since 2014 – a tough competition that puts tires at the test.

OTR Whether you are in mining or constructions, you are looking for reliable tires that withstand mechanical stress and fatigue in such harsh environments while carrying heavy loads at the toughest handling and transport conditions.

TIRE DEALERS Whether you serve one or more Off-Highway segments, you need a reliable partner that not only sells tires, but also supports you in providing full service and assistance to final users.

BKT is an India-based multinational that started its tire business in 1987, which later specialized into Off-Highway Tires. For over 35 years, BKT has successfully focused on specialist segments. The group offers today a large and always updated product range of Off-Highway tires specially designed for vehicles in the agricultural, industrial, earthmoving, mining, ATV and gardening sector.

BKT’s innovative solutions designed for the most differing user needs include more than 3,200 products sold in over 160 countries worldwide. Today, BKT’s overall daily production capacity is over 1000 MT/day. The largest production site in Bhuj is a state-of-the-art industrial park in continuous expansion, stretching over 500 acres.

Visit the website www.bkt-tires.com for further information

Traditional values meet innovative ideas “Based on traditional values that are part of our original culture, we have focused on human and environmental aspects at all times. BKT is always at the cutting edge when it comes to new industry trends such as electric mobility and cares about serious issues such as soil compaction in order to develop new tires that not only ensure top performance and quality, but fully meet user expectations from any viewpoint. Every tires that come out from our plants undergo over 500 quality test, from raw materials to final product inspection, before being released on the market.”

“We share the idea of a great team, in which everyone pulls in the same direction.”

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Mr. Arvind Poddar Chairman and Managing Director

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TIRE EVOLUTION FOCUS: AGRICULTURE TIRES

Agriculture is as old as humankind. And like human beings have undergone an extraordinary evolution process from prehistorical times over industrialization till the present digital age, so has agriculture. Over the last two decades, things have changed more rapidly than ever - whether it is about the way we connect using social media or how technology has entered our daily life.

Thinking of the hallmarks and challenges of the 21st century, most people will answer with a carousel of achievements in science and technology ranging from mobile operating systems, digitalization, Artificial Intelligence, the Internet of Things to gene editing or even reusable spacecraft systems contrasted by a bundle of challenges such as climate change, global conflicts, natural disasters, supply chain disruptions – to name but a few.

So, one may ask, what about farmers? Are they just a remnant from ancient times? – The answer is no! The often-neglected farming sector is key to our future.

In view of a global population expected to reach

almost 10 billion people by 2050, one of the greatest challenges of modern mankind is feeding the Planet in a sustainable way.

This makes modern farming a complex and challenging business. Farmers have had to evolve adopting new methods, such as precision farming, regenerative and vertical agriculture, and they had to learn about new technologies to face major issues like soil compaction and biodiversity loss. Many are the expectations, and much is the pressure. Modern farmer needs to be always up to date with latest equipment trends, and they need a reliable and experienced partner who can cater for their specific needs in that specific application, on that specific type of land, enhancing the performance of the machinery employed in a way that is respectful to nature and comfortable for the operator: BKT is always by your side providing cutting-edge tires for your specific needs.

BKT AT THE 2023 FARM PROGRESS SHOW The 70th anniversary of the Farm Progress Show in Decatur, Illinois is the perfect place where farmers can meet and connect with leading providers and manufacturers of agricultural equipment and products or participate in one of the many field demonstrations.

A great occasion to learn about the latest trends in the industry and to meet BKT, the tire manufacturer that offers an extensive and updated range of innovative Off-Highway tires for vehicles in the agricultural, industrial, earthmoving, port, and mining industries.

BKT will be showcasing a variety of farming tires, and in particular AGRIMAX TERIS and AGRIMAX RT 600, two tires that will help you kick off harvest season. Also on display will be the ATV tires Sierra Max, Bog Max, and W 207 and not to be missed the Max-D Monster Jam truck.

BKT regularly takes part in major trade shows and events and will also be present at the 2023 SEMA SHOW to meet with customers and end users.

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READY FOR THE HARVEST SEASON? Depending on where a farm is located and which crops are cultivated, harvest season has already started, is in full swing or upcoming.

Many are the potential problems that farmers can face during harvest, such as long working hours, environmental concerns, equipment downtime, adverse weather, and climate effects from heavy rainfalls to draughts, or even wildfires.

One thing a farmer should never have to worry about is whether their tires will perform the way that they should.

This is where BKT comes into play. BKT provides a wide range of specialist tires that increase farmers’ comfort, productivity, and yields.

Source: https://fas.usda.gov

Today’s high-power harvesters require, indeed, tires that are able to support heavy equipment and loads without damaging the crops.

AGRIMAX TERIS is perfect to be fitted on harvesters and cotton pickers. Excellent traction properties and high load capacity are its essential features providing the best performance in all harvesting operations.

The special sidewall protection and a reinforced shoulder increase resistance - thus extending the product life-cycle – also in harsh conditions and if there are stubbles in the fields.

Another strong option for harvesters is AGRIMAX RT 600, the ideal tire for grassland harvesting and spreading applications. Thanks to its large contact area, AGRIMAX RT 600 ensures excellent pressure distribution on the land reducing damage on grassland and protecting your soil.

Thanks to its rounded shoulder, the reinforced bead and an increased number of lugs, this tire guarantees great stability and traction.

To learn more visit www.bkt-tires.com

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TIRE EVOLUTION FOCUS: TIRE DEALERS Growing Together - Associate Dealer Program At BKT, our goal is to deliver top-quality Off-Highway tires as well as all the professional service before and after sales that users need. Our Growing Together Associate Dealer Program provides exceptional value through comprehensive benefits and rewards.

The Growing Together Associate Dealer Program is part of our continuing effort to supply and service end users with a full range of products through a coordinated network of distributors, wholesalers, and Associate Dealers. Selecting Associate Dealers that have a common goal of exceptional customer service is at the forefront of our program.

BKT offers to associate dealers a full range of topquality products along with many additional benefits, such as direct communication with BKT staff, competitive pricing, comprehensive warranties, field

support, product and technical training, marketing, advertising, and promotions. Throughout the year, Associate Dealers will have the opportunity to earn lucrative BKT bonuses on eligible BKT products.

This is, what Shane at KVL Tires says about partnering with BKT: “I’ve been selling BKT products for the better part of 8 years. Along the journey, I have found the product to be very well made for most applications in the USA market. In my experience, this brand is ideal for customers that need quality and reliability. BKT also has a vast offering of sizes, making it easy to cover all our customer’s needs. We here at KVL Tires value our working relationship with BKT and know that we have the right partnership with them.”

Interested in being a part of our growing community? Reach out to your local distributor today to get started.

TIRE EVOLUTION ALWAYS ON THE RIGHT TRACK Recently, BKT has further extended its offer by starting the production of rubber tracks.

MULTIFORCE BK T91 is BKT’s brand-new industrial rubber track series for compact track loaders (CTL) employed in material handling applications. The tread is made of a high-performance compound that ensures maximum resistance against cuts, tears, and abrasion.

The aggressive, C-shaped tread pattern provides superior handling and excellent traction on all terrains. The track is, indeed, suitable for a variety of surfaces on and off the road such as clay, mud, asphalt, gravel, and sand. It also provides optimal flotation on hills or slopes.

MULTIFORCE BK T91

core for strength and excellent durability. In addition, the endless belting design of high tensile steel cords ensures better dimensional stability and excellent performance in extreme conditions. In a nutshell, the new track is a reliable partner that ensures a long product life even under extreme service conditions.

More pattern and sizes for both farming and industrial tracks are under development.

To learn more visit www.bkt-tracks.com

MULTIFORCE BK T91 features a dual forged metal BKT USA Inc. 202 Montrose West Ave. Suite 240 Copley, Ohio 44321 Toll free: (+1) 888-660-0662 - Office: (+1) 330-836-1090 Fax: (+1) 330-836-1091

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Artificial Intelligence

Artificial intelligence has arrived HERE’S HOW TIRE MANUFACTURERS, SUPPLIERS ARE USING IT

By

Mike Manges

T

he idea of artificial intelligence (AI) isn’t new. The term was coined during a conference held at New Hampshire’s Dartmouth College in 1956.

However, AI is a relatively newer concept to the tire industry. But that hasn’t stopped several tire manufacturers, suppliers and distributors from already incorporating it into their operations.

And some of these companies are convinced that AI can do more than help design better tires. They also believe the technology can help optimize tire manufacturing, logistics, customer service and other functions. (Editor’s note: MTD reached out to a number of tire manufacturers and suppliers for information about how they are using AI. Some elected not to participate in this article.)

Bridgestone Americas Inc. “has been using AI technology for several years now, with a focus on tire and material design, but also extending to tire manufacturing and operation — leveraging the extensive data sets associated with the tire and technology development process,” says Hans Dorfi, senior vice president, product development, Bridgestone Americas.

“Specific to tire development, the focus is the use of AI to support and accelerate engineering processes and also accelerate discovery of new technologies,” including compounds.

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Hankook Tire America Corp. says it is using multiple AI systems. (Pictured, parent company Hankook Tire & Technology’s Technodome facility in South Korea, which leads Hankook’s AI research.)

Photo: Hankook Tire & Technology

Hizmy Hassan chief digital officer at Apollo Tyres Ltd., which owns, manufactures and sells Vredestein brand passenger and light truck tires and Apollo brand commercial truck tires in North America, says AI “is steadily making its way into how tires are produced” at the company.

“We are developing applications using AI to optimize production scheduling, drive workflow efficiency and control machine parameters.

“This adoption of AI has helped us to push up efficiency and quality, as well as improve output at our plants, with no additional cost.

“Besides being capital intensive, the mixing of compounds is a crucial process in the manufacturing of tires, since it has a significant influence on the characteristics of the tire.

“In other areas of the business, we have been able to improve our sales forecasting by using AI for checking the weather conditions, exchange rates, etc., which allows us to provide much better availability of stocks.”

Pier Paolo Tamma, senior vice president and chief digital officer for Pirelli & Cie SpA, say Pirelli uses AI “in the form of numerous algorithms that support the various processes in the development of our tires,” starting with the tire’s design and advancing to “testing for performance and level of safety in a virtual setting.”

Pirelli’s main research and development center in Milan, Italy, features a “static virtual simulator. Pirelli applies these instruments globally, including (in) North America, and they are combined with more traditional processes.”

The increased use of AI-supported, virtual processes helps Pirelli optimize the performance of its tires, “speeds up the offering of new products and also reduces the need for real prototypes.”

Hankook Tire America Corp. says it is using multiple AI systems, including “a broad suite of AI algorithms and virtual or digital twin prediction technologies (that are) applied at all stages of design, development, manufacturing, deployment and usage of our products.”

Robert Wheeler, vice president of tire engineering technology, Hankook, says, “More recently, we have been accelerating the capabilities and applications of our AI algorithms and virtual technologies through expanded internal and outsourced research.”

Wheeler notes that Hankook’s Daejon, South Korea-based Technodome facility “leads this research,” with collaboration in some areas with Hankook’s Akron, Ohio-based tech center Hankook also is developing new tires using its Virtual Tire Model technology, which “allows us to deliver optimized designs for the U.S. market.”

23 8/8/23 12:26 PM

Artificial Intelligence Nexen Tire America “is using what is commonly referred to as AI in our tire development process and also for testing and manufacturing,” says Aaron Neumann, product development manager, Nexen.

“We have a large database of 190,000 tires with specifications linked to real test data. AI is used to run predictions against this database. We can quickly run lots of design permutations and get performance predictions.

“We also use AI to process shearography and X-ray images to detect anomalies and in another case, to reduce airborne noise produced by tread blocks,” says Neumann. “In all cases, what we are doing is using advances in computing power to process huge amounts of data in order to make better, data-driven decisions.”

Other manufacturers, like Maxxis International-USA, are exploring the possible use of AI. “In tire design and development, AI could play a crucial role in optimizing the performance and durability of our tires,” says Chris Jenkins, programs and marketing manager, Maxxis.

“Algorithms could be used to simulate and analyze tire performance under different conditions, enabling us to fine-tune the design and composition of our products to meet specific performance requirements.”

In addition, “through AI-driven analytics, we could gain deeper insights into customer preferences and usage patterns.”

On the factory side “we could optimize manufacturing processes, reduce waste and ensure consistent tire quality,” says Jenkins.

“AI also could be utilized in tire distribution and logistics. By leveraging AI algorithms and data analytics, we could optimize supply chain management — forecasting demand and ensuring timely delivery to our customers.”

AI certainly has applications when it comes to logistics and tire distribution, says Tony Gonzalez, CEO of Tire International Group LLC. “We are using the foundations of AI to help us forecast inventory levels, better manage our warehouses and actively monitor our delivery vehicles. We see AI as a tool to assist our staff in making better decisions, alerting them when there are anomalies and freeing up their time.

“We are still early in the process of rolling out and refining some of the aforementioned initiatives, but we are excited about what this technology can do,” says Gonzalez.

24 2308MTD_23-25_AIManuf.indd 24

“We understand that we are just scratching the surface and the possibilities are limitless with this technology.”

American Kenda Rubber Industrial Co. Ltd.’s research team “continues to evaluate new and emerging technologies to determine what provides the optimum balance of performance, safety and sustainability and cost,” says Joshua Herron, chief engineer and manager of tire research for the company.

“As the AI revolution continues, we will continue to evaluate how it will play into our focus of helping our customers reach their destinations safely and reliably.

“AI systems are a wonderful tool to experiment within the bounds of training, but we at Kenda prefer to look past the current horizon to aim to what is next,” says Herron.

“Further to this, to support our growth in the U.S., we are using modeling tools to establish the most optimum distribution locations in the country and also optimize inventory replenishment parameters.”

“AI will play a growing role for Pirelli customers — not only in the U.S., but worldwide,” says Tamma, who adds that the company will continue to apply the technology “in many areas, as a support to traditional operations.

“They involve, for example, the tire development process enhanced by virtual machine learning, the prediction of commercial trends and the evaluation of new products using specific algorithms that are themselves continuously evolving.”

“AI will help us create variations of methods, execute tests and find possibilities,” says Hankook’s Wheeler.

“We are using the foundations of AI to help us forecast inventory levels, better manage our warehouses and actively monitor our delivery vehicles,” says Tony Gonzalez, CEO of Tire Group International LLC. Photo: Tire Group International LLC

WHAT DOES THE FUTURE HOLD?

Manufacturers and other suppliers say they will continue to explore — and optimize — the use of AI. Bridgestone “is actively increasing our use of AI to accelerate time-to-market for solutions to make our products and customers more sustainable,” says Jason Beyer, vice president, data and analytics, Bridgestone Americas.

“AI technologies can enable us to respond to customers in a faster, more efficient and effective way.”

Apollo says that in North America, AI-enabled sales forecasting will help Apollo “ensure we maximize inventory availability for our customers at optimum supply chain costs and working capital levels.

Nexen’s Neumann says that “the power of AI has only begun to be utilized. As AI develops, there will be countless applications in all areas of business, leading to improvements in efficiency.”

“AI could play a significant role in shaping the future of what Maxxis offers to its customers,” says Jenkins.

“AI could be very instrumental in driving innovation, improving tire performance and delivering exceptional customer experiences as manufacturers continue to push the boundaries of what’s available in the tire industry.”

“We will continue to explore ways to harness AI to become more efficient, better inform our customers and provide even better service in the tire industry,” says TGI’s Gonzalez. ■ MTD August 2023 8/8/23 12:26 PM

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Artificial Intelligence

Implementing AI is all about training and education THREE DEALERSHIPS SHARE THEIR AI VISION By

Madison Gehring

“RNR Tire Express is using AI as much as we can right now and we are utilizing it in stores, but we are mainly focusing on the corporate side,” says Adam Sutton, president of RNR Tire Express.

Photo: RNR Tire Express

W

hen asked what artifiusing it within my businesses by having it Do you use Artificial Intelligence help me reply to customer Google reviews cial intelligence (AI) is, at your tire dealership? or create some emails,” ChatGPT — an artificial As of now, Mallett is the only employee intelligence chatbot — at Kilgore Tire Service who istire utilizing AI. provided this definition: Do you use Artificial Intelligence at your dealership? (ex.to order management, sales, etc) “Artificial intelligence refers the forecasting, “I use itinventory for writing, answering questions, YES development of computer systems and updating policy, creating a mission state32% machines that can perform tasks that ment and things along those lines,” he says.

NO typically require human intelligence.

Mallett adds that he wants to get By simulating human intelligence, AI comfortable with the new tool before 68% technology aims to automate and enhance introducing it to the rest of his team. various processes, solve complex problems Tampa, Fla.-based RNR Tire Express and improve efficiency in a wide range is doing the opposite. of fields, such as healthcare, finance, “RNR Tire Express is using AI as much MTD polled its LinkedIn followers on their interest and use of AI. The transportation and more.” as we can right now and we are utilizing informal survey results are published More independent tire dealers are it in stores, but we are mainly focusing on in this article. the corporate side,” says Adam Sutton, starting to think about and in some cases, use AI. MTD recently spoke with president of the company.

Baker Ghanim, president of Tire Store officials from RNR Tire Express, which “We are actually building a new pointhas over 180 franchise locations; Kilgore of-sale (POS) system that our entire operService Center, a Bedford, Texas-based Tire Service, which has two stores; and ating system will switch over to and we dealership, says he breaks down the utilizaGhanim Group dba Tire Store Service are releasing that in Ifmodules.” of AI indodealerships you use AI at your tire business, tion what functions you use it for? in two categories Center, with nine locations — all tire RNR started rolling out its POS system — near-term changes and future changes. companies that are dipping their toes in January of last year. The company rolled “For the near-term, with more tire into the AI world. out price quoting first and then AI analytics sizes and patterns in the market than ever of predictive pricing and inventory manand our business model of stocking over AI UTILIZATION CAN VARY 2,500 tires per location, we are trying to agement came next, according to Sutton.

Darrin Mallett, president at the Kilgore, use AI to help us manage our inventory,” Although Mallett and Sutton oper28% 22% Texas-based Kilgore Tire Servce, says ate differently sized operations, both he says.

INVENTORY that his first interaction with AI was believe that product and demand fore“We believe that an AI tool can MANAGEMENT ORDER FORECASTING through ChatGPT. “I saw an advertisecasting are the biggest challenges AI manage orders from suppliers and inment and downloaded the app and started will help tire dealers tackle. company transfers.”

26 2308MTD_26-31_AIDealers.indd 26

0% TIRE DISTRIBUTION

50%

MTD August 2023

MARKETING/ ADVERTISING 8/8/23 12:25 PM

2308M

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8/8/23 12:26 PM 7/20/23 9:22 AM

(ex. order forecasting, inventory management, sales, etc)

NO

YES

68%

68% 32% NO

68%

Artificial Intelligence However, AI tools must take into account a location’s sales trends, tire tiers, dealer and consumer rebate programs, seasonal trends and more, according to Ghanim.

His goal is to have “software that will look to see if there is an alternative option in stock or overstock at a different location before ordering a specific tire size and tier.”

In the future, maybe 10 years from now, he believes AI will become more integrated into his business’ day-to-day operations.

— such as putting a car in a bay with a technician at the right time, predicting the time required for an auto repair, analyzing current tire conditions and more.

“These factors will determine the work needed and the arrival time to service the customer.”

AI IN POS SYSTEMS, MARKETING

The new POS system that RNR Tire Express is releasing in modules will have demand forecasting and product inventory built into it. The system also will provide more data analytics.

“The system will give us cleaner data than we’ve ever had before to make datadriven decisions and then we are going to be utilizing AI to help make those decisions and predict and forecast the things we should be doing,” says Sutton.

Mallett agrees that AI can work “faster If you use AI at your tire business, what functions do you use it for?

If you use AI at your tire than our brains” when it comes to inventory. dealership, what functions “It could really help if I can come in If you use AI at your tire business, what functions do you use it for? do you use it for?

Monday morning and say, ‘I need 2,000 If you use AI at your tire business, what functions do you use it for? (units) from Goodyear,’ and put the parameters in the system and have it spit out a suggested order.”

28% If you use AI at your tire business, what functions do you use it for?

22% Another task that AI is helping with INVENTORY is marketing.

28% MANAGEMENT ORDER FORECASTING 22% Similar to Mallett, RNR Tire Express INVENTORY says it uses ChatGPT to create scripts for 28%MANAGEMENT 22% ORDER FORECASTING training videos or scripts for salespeople.

INVENTORY MANAGEMENT ORDER FORECASTING The firm’s learning monitoring system 50% 0% 28% also can create a digital character through 22% TIRE DISTRIBUTION MARKETING/ INVENTORY 50% AI and have it follow prompts.

0% ADVERTISING MANAGEMENT ORDER FORECASTING “Historically, we’ve had to film videos TIRE DISTRIBUTION 50% MARKETING/ and get an actor or a trainer and carve out 0% ADVERTISING studio time and write a script andTIRE then DISTRIBUTION MARKETING/ ADVERTISING pay everyone,” says Sutton.

50% 0% “Now, we can go to ChatGPT and say, DISTRIBUTION ‘Write me a script about tire safetyTIRE with MARKETING/ ADVERTISING topics x, y and z.’

“That won’t give you the final output, but it’s going to get you 60% to 80% of the way there. Once the script is done, we can put that into the AI technology that will “Midjourney is an AI text-to-image generator that we utilize,” says Sexton. generate a person following the script.”

There are other uses for AI in marketing.

“I can type in ‘Jeep Wrangler climbing Jason Sexton, creative director for over rocks at sunset’ and in one minute RNR Tire Express, says the biggest chalit will generate a high-resolution image lenge for marketing is always visuals. that looks real.”

Tire Dea Artificia

AI for service advisors

Tire Dea Artificia

Using technology to help simplify the sale What if every service advisor in your tire dealership had a coach whispering in his or her ear a punch list of the precise services a customer’s vehicle needs? And what if that list came with standardized talking points to ensure the jobs were properly explained and sold?

Patrick Murphy, the CEO and co-founder of Sidekick360, says his company is building that tool and is using artificial intelligence (AI) to gather the information in the span of a few seconds.

“The biggest problem in our industry right now is (service advisors) are spending 15 minutes trying to figure out what to sell this customer,” says Murphy. They are searching their local records, checking CarFax reports and scanning other resources to find lists of recommended services, not to mention warranty and recall information.

It’s easy to cut steps out of that process when time is short and there’s a line of customers at the counter.

And even when an advisor performs a thorough review, Murphy says it can be difficult to synthesize all the information.

That’s where AI can help, he says. AI is capable of gathering

28 2308MTD_26-31_AIDealers.indd 28

data, but also analyzing, summarizing and prioritizing it to determine what service needs to be completed. For example, he says if the result is a recommendation for fuel system service, the tool can help the service advisor explain the service to the customer in a brief, understandable manner.

“We provide a standard conversation for every rooftop. So (with) every service, (you’re) having the same conversation.”

But these aren’t cookie-cutter recommendations, such as a brake job or an alignment, for every vehicle that rolls into a service bay.

The data is specific to each vehicle and considers prior service records, mileage and histories of like vehicles.

Murphy says Sidekick360 also provides users with a way to track what services weren’t sold, so owners and managers can monitor those missed opportunities.

They can also set local “rules” to make sure a customer who replaces a cabin air filter in August is reminded and recommended a year later to replace that filter again.Murphy says his goal is to provide “better data right now for each dealer we work with.” — Joy Kopcha

MTD August 2023 8/8/23 12:26 PM

COMMU WITH CU

COMMU WITH CU

STAF HUMAN R

STAF HUMAN R

50%

0% TIRE DISTRIBUTION

THE BENEFI

35

MARKETING/ ADVERTISING

UNCERTAIN THE BENE

Artificial Intelligence “The other thing I think of immediately that AI could improve upon in our industry is the service writer position,” says Mallett.

“There is so much to keep up with in a given day that we can forget to do little things or drop the ball on them.

Sometimes we drop the ball on calling people back or ordering something, so having a POS system that could remind the dealer, ‘Did you put the order in for those tires?’ or ‘Did you call that customer back?’’ would be really helpful.”

Another thing AI could help service writers with is the communication between customers and technicians.

According to Mallett, if a service writer is inexperienced and a customer brings their vehicle in for inspection there may be some questions that the technician would want to know the answer to that the service writer just won’t think to ask.

“For example, if a car comes in and it’s overheating, mechanics will want to know if it overheats in the morning or afternoon or just when the customer starts it up,” says Mallett.

Tire Dealers - what are some problem areas that

“These are the things (technicians) Artificial Intelligence could help with the the tire industry?

What are some will want to know when diagnosing the problem areas where AI problem, so if an AI POS system is intuitive could help the tire industry? and asks those questions, it would help not Tire Dealers - what are some problem areas that Artificial Intelligence could help with the the tire industry? only mechanics, but service writers, too.”Tire Dealers - what are some problem areas that Artificial Intelligence could help with the the tire industry?

POTENTIAL RESISTANCE

19% “One of the things I think is super65% important is change management and COMMUNICATION DEMAND Tire Dealers - what are some problem areas that CUSTOMERS training,” says RNR Tire Express’ Sexton. Artificial WITH Intelligence could help with the the tire FORECASTING industry?

“Whenever you implement a new 19% 65% process — especially something to this 19% 65% 8% level — it’s important that you look at COMMUNICATION 8% DEMAND WITH CUSTOMERS FORECASTING the changes it’s going to have on workCOMMUNICATION DEMAND STAFFING/ WITH CUSTOMERS PREDICTIVE FORECASTING flow, processes and job roles within the HUMAN RESOURCES MAINTENANCE organization.”

8% 19% Sexton says dealers need to prepare 65% 8% 8% 8% for potential resistance to AL-drivenCOMMUNICATION STAFFING/ DEMAND PREDICTIVE CUSTOMERS change and implement effective changeWITH HUMAN RESOURCES FORECASTING STAFFING/ MAINTENANCE PREDICTIVE management strategies.

HUMAN RESOURCES MAINTENANCE “In essence, it’s like when the first accountant was able to use a calculator at 8% 8% their desk instead of doing everything on STAFFING/ PREDICTIVE a spreadsheet. People shouldn’t be afraid HUMAN RESOURCES MAINTENANCE of it. It’s a new tool to make you even stronger and better.”

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8/1/23 8:43 AM

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Artificial Intelligence

our tire dealership? nagement, sales, etc)

YES NO

32%

AI is only as good as its data 68% 32% 32% YES NO NO 32%Inc.’s intel- So what we do is we plug into 15,000 American Tire Distributors 68% 68% ligence company, Torqata, is utilizing different shops and extract all of that NO the new AI rush to educate dealers on data. Now the AI models can work and 68% data and how best to utilize it. normalize that big pool of data, rather

our tire dealership? ship? nagement, sales, etc) es, etc) ire dealership? ment, sales, etc)

YES YESNow is the time to learn and experiment

“AI or machine learning — those are fancy words for concepts that have been around for a few years, basically ‘statistics ‘— means I am able to learn u use AI at your tire business, what functions do youthat use it happened for? from something in the past to predict something that might happen in the future,” says Tim Eisenmann, CEO of Torqata.

“Data is the ingredient ou use AI at your tire business, what functions do you use it for? you’ll learn business, what functions do from you useand it for?if you don’t have good data, 28% your recommendations from AI will AI at your tire business, what functions do you use 22% it for? not be good.”

INVENTORY

than just your one location.”

Mallett agrees that AI is a tool for the benefit of employees, rather than a way to eliminate or replace employees.

“I remember when people were nervous about robots coming over and taking jobs, but the thing is, people don’t want to do manual labor as much,” says Mallett.

“So,these machines took care of it. That is how I view AI.” He continues by saying he doesn’t believe AI is a manual labor tool, but it can free people up from the stuff they really don’t want to do.

Start with what you have When beginning to implement AI into their businesses, Eisenmann suggests Why is your tire dealership that tire dealers start addressing chalAnother Monday means another AI question. not using AI at the moment?

Tire dealers who aren’t using artificial intelligence, let us know why! lenges that already exist within their locations “because that’s the only thing worth solving.”

“I wouldn’t necessarily look for an Another Monday means another AI question.

AI solution to (another tire dealer’s) Tire another dealers who aren’t using artificial intelligence, let45% us know why!

15% Another Monday means AI question.

Tire dealers who aren’t using artificial intelligence, let us know why! problems,” says Eisenmann.

MANAGEMENT “I would look for a software provider LACK OF UNDERSTANDING Another Monday means another AI question.

ORDER FORECASTING COST CONCERNS Tire dealers who aren’t using artificial intelligence, let us know why!

The importance of large data that solves my specific business probEisenmann believes the tire and auto- lem and then see if it has AI features 15% 22% % 28% 22% motive industry is in its infancy when to utilize.”

5% 45% 15% 35% 45% INVENTORY 50% 0% it comes to the establishment of and Point-of-sales systems are a good MANAGEMENT LACK OTHER OF UNDERSTANDING ORDER FORECASTING COST CONCERNS 28% 15% LACK OF UNDERSTANDING familiarity22% with large data sets. He place to start because many daler45% ORDER FORECASTING COST CONCERNS E DISTRIBUTION MARKETING/ UNCERTAIN ABOUT ENTORY wants tire dealerships to be able to ships already have some type of sysADVERTISING THE BENEFITS AGEMENT LACK OF UNDERSTANDING ORDER FORECASTING COST CONCERNS “leverage decades of customer inter- tem implemented. Eisenmann suggests 5% 5% action and transactions.”

50% talking to sales reps and asking if there 35% 0% OTHER 50% 35% He believes the two biggest applica- are any packages or plug-ins that could OTHER E DISTRIBUTION 5% MARKETING/ tions within the tire industry right now be utilized.

UNCERTAIN ABOUT 50% 35% MARKETING/ ADVERTISING 0% UNCERTAIN ABOUT THE BENEFITS OTHER for AI and large data sets are forecast“It’s not like dealers have to implement ADVERTISING THE BENEFITS TRIBUTION ing and customer experience.

AI software,” he says. “It’s software that MARKETING/ UNCERTAIN ABOUT ADVERTISING Becoming more predictive when fore- is doing a certain thing and it does it in a THE BENEFITS casting can help dealers with ordering very intelligent way — and that intelligent and inventory levels, while customer way is usually fueled by AI.” “Plus, AI creates more jobs because experiences can be tailored to fit each Eisenmann believes the tire industry you’ll need people monitoring the softcustomer. is going to keep getting more sophistiware and implementing and teaching “For example, if I know a certain cated, so now is the time to get a good it,” he says. customer really likes a printed invoice, understanding of what does and what Sexton draws similarities between the I shouldn’t have to ask the second time doesn’t work.

Tire Dealers what are some of problem areas is that internet and AI, harkening back to when they come in,” says Eisenmann.

“The- complexity systems going Artificial Intelligence could help with the the tire industry? the internet was first released to the pub“I should learn from that initial time to increase,” he says. “You will need that lic. “A lot of people viewed the internet as of asking if they wanted a printed in- support and you will need that technology a fad — like it was only something geeky voice to create a better customer ex- to amplify the intelligence and knowledge people use. perience for them.” you bring.

Tire Dealers - what are some problem areas that Artificial Intelligence could help withisn’t the the tire industry?

Tire Dealers - what are some problem areas that “But it completely changed our way of Making data more usable is where “So if a call for action there for Artificial Intelligence could help with the the tire industry? life, like the introduction of the cellphone.

Eisenmann recommends tire dealers retailers, it needs to come really soon Tire Dealers - what are some problem areas that AI equivalent to these in the way start. there arewith other, larger chains Artificialbecause Intelligence could help the the tire industry?

19% 65% Iitfind will affect and influence consumers.”

Tire dealership employees “all input harnessing the power of that technolCOMMUNICATION DEMANDIt’s Ghanim believes that AI will not data differently,” he says. ogy. It’s not going to get simpler.

WITH CUSTOMERS FORECASTING become the new norm within the industry “For example, you’ve got a Goodyear not going to get easier. The best time for another 10 years. He believes the shift Assurance tire that’s also called Good- to start educating yourself is now. Oth19% 65% to AI will be “gradual and natural because year Assurance Pro, GY Assurance — erwise, you’re going to be left behind.”

19% 8% 65% DEMAND 8% the machine will be so good that it will there’s a million ways to input that tire. COMMUNICATION — Madison Gehring COMMUNICATION WITH CUSTOMERSDEMAND FORECASTING 19% STAFFING/ be our preferred option because it never 65% PREDICTIVE WITH CUSTOMERS FORECASTING HUMAN RESOURCES damages a tire or wheel.”

MAINTENANCE COMMUNICATION

8%

WITH CUSTOMERS

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8%

8%

DEMAND FORECASTING

8%

8%

STAFFING/ PREDICTIVE STAFFING/ HUMAN RESOURCES PREDICTIVE MAINTENANCE HUMAN RESOURCES MAINTENANCE STAFFING/ PREDICTIVE HUMAN RESOURCES

8%

MTD August 2023 8/8/23 12:26 PM

Artificial Intelligence WHERE TO START?

“To start in AI, it is important to identify what your goal is,” notes Sexton.

He says that goal could be enhancing the in-store customer experience, becoming more efficient or gaining a competitive edge over competitors.

“What are you trying to get from the system? And then make sure you evaluate different systems or different AI programs that will help you achieve your goals. Once that is in place, you can move forward by bringing it into your company.”

A good way to pinpoint AI-related goals is to look at repetitive actions happening inside of a store, according to Sexton.

“Take that repetitive, mundane task to AI and free up someone’s time to be more powerful and save money.”

Sutton reminds dealers that AI is only as good as the data it pulls information from, so it is important to effectively communicate with AI systems on what is desired or needed.

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Baker Ghanim, president of Tire Store Service Center, says he is designing his newest store in the shape of a circle, with bays all around the shop and technicians in the center. He calls it “The AI Shop of the Future.”

Photo: Tire Store Service Center

Sexton recommends that dealers add an AI chief officer — a newly created role — to their teams. Put that person in charge of AI and its tasks within the tire dealership, he says.

“Part of the process is educating and training people so they understand we aren’t trying to replace anyone, but (we’re) actually trying to expand and enhance their role.”

“AI isn’t coming,” says Sutton. “It’s here and if you can be an early adapter and put somebody on your team that knows how to do it, it can help and enhance, not hurt and hinder.”

AI goes hand-in-hand with other updates, says Ghanim, who has a new store in the works “We are designing our shop in the shape of a circle, with bays all around the shop and technicians in the center of the shop.

“The set-up facilitates smoother communication today and will set us up for a more efficient shop in the future.”

Mallett encourages tire dealers to educate themselves about AI and become comfortable with the many changes it will bring to the tire industry.

“If you’re not changing, you’re not growing,” he says. ■

2/22/23 10:27 AM

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Artificial Intelligence

Photo: 23345999 © Szemeno | Dreamstime.com

‘If you’re questioning AI, you’re already behind’ ARTIFICIAL INTELLIGENCE CAN HELP TIRE DEALERS, SAYS EXPERT By

Mike Manges

C

an artificial intelligence (AI) help tire dealers? The answer is an emphatic “yes,” says Sunjay Dodani, the CEO of Revvo Technologies, a San Mateo, Calif. company that makes and markets TireIQ, an AI-based tire data analytics system.

Revvo uses TireIQ to analyze and predict tire conditions and deliver actionable insights via Revvo-native dashboards and other compatible systems.

Revvo’s clients include fleets of commercial trucks and last-mile delivery vans, a major new vehicle original equipment manufacturer and even a few tire dealerships. (Editor’s note: Dodani declined to provide specifics.)

In this MTD exclusive, Dodani discusses what AI is and how tire dealers should be thinking about it.

MTD: Can you explain AI and how it could work in a tire service context?

where there’s an insight to be highlighted — things like cost-per-mile and the wear rate of a given tire — and then serve that to the folks who are looking for it.

MTD: Are there both consumer and commercial applications for AI products like yours?

Dodani: Yes. For example, if you’re a commercial tire dealer in today’s environment, you’re facing headwinds in hiring. It’s a challenge to find people you can trust and rely on to go out there and check customers’ tires for you. Having an AI solution that does that for you remotely and automatically — and tells you when there’s a (tire) issue — can help you reduce your head count and other constraints on your business.

Sunjay Dodani says AI can digest data to help make a sale.

MTD: Can dealers use AI to help sell tires?

Dodani: AI can go through your CRM system — (looking at) your customer support tickets, your notes, all the history you have with (customers’) tires, how those tires are used, who bought them, where they were bought … it takes into account all the subjective feedback customers have made on a particular tire. That makes it even more likely that the recommendation you will make is the right one. Now you become an even more trusted source.

Photo: Revvo Technologies

Dodani: AI is a misnomer in some ways because it’s lots of different, intelligence-based algorithms that are working together. When you’re in a oneon-one engagement with another person, you’re limited by your life experience and what you know. AI has knowledge based on millions of people who have contributed to the Internet. And it can sift through that at a speed that is blindingly fast.

To make AI valuable to specific industries, one has to ingest data from a particular vertical. We’ve collected billions of data points (about tires) from customers. There’s no human in the world who can sift through that in a short amount of time to deliver an insight. AI can crawl through it and identify

32 2308MTD_32-33_AIRevvo.indd 32

MTD: Could AI be sold as an add-on at the sales counter?

Dodani: If you’re a dealer, you can sell Revvo’s TireIQ and we can connect to the

Using AI, “you can analyze trends for customers, so they know when to come in for service,” says Sunjay Dodani, CEO of Revvo Technologies.

“It’s another touch point and a tool for customer retention.”

Photo: Revvo Technologies

(customer’s) vehicle remotely, using its onboard tire pressure monitoring system.

It’s like having a technician ride along for the life of the tire, without the owner having to do anything.

The dealer also knows how the consumer is using the product and there’s a hook for the customer to come back. You can analyze trends for customers so they know when to come in for service. It’s another touch point and tool for customer retention.

MTD: Should tire dealers be thinking about AI now or take a wait-and-see approach?

Dodani: If you’re questioning AI, you’re already behind. Even in our personal lives, AI has infi ltrated and is doing things subtly. When you turn on Netfl ix, recommended shows pop up on the screen.

There’s AI behind that, selecting shows and movies for you.

For business, I think the easiest point of entry is to look at the major drivers that affect your business today. Sales, service, customer experience — each has an element where AI can help. Seek out some of the low-hanging opportunities, where you can have (an AI tool) that’s plug-andplay. You can test it out, see how it works and see how you can leverage it for your business. More advanced tire dealers are already deploying AI. If you aren’t looking at AI or adopting it in small ways, you’re already losing out. ■ MTD August 2023 8/8/23 12:25 PM

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Light truck tires

A 35-inch tire specialist

JEEPS AND LT TIRES RULE THE DAY AT BLACK BEAR OFF-ROAD By

Mike Manges

B

rad Cohron has always been into cars, but you could say his business and passion came after his pickup truck’s motor blew up.

He was newly married when he unexpectedly had to replace that truck. His friend had an $800 Jeep for sale. “It was in bad shape,” he says. But Cohron was desperate for a vehicle and the price was right, so he bought it.

“I was more into import cars and things like that and mini trucks,” he says.

But Cohron fell in love with that Jeep, as well as off-roading and the community of Jeep enthusiasts he met on the trail.

The Mopar Career Automotive Program graduate worked first as a technician then as the general manager of a Pep Boys store. But in his spare time, he was buying and accessorizing Jeeps. One year, he needed to use up some of his paid time off, so he planned a trip to Daytona Beach, Fla., to attend Jeep Beach, one of the largest Jeep-exclusive events in the world.

(In 2022 it attracted 25,000 Jeeps and more than 225,000 people.)

“I got down there and saw people making money doing what I liked to do. I got home and said, ‘I’m done working on your typical cars.’”

He left Pep Boys and took successive sales jobs for Jeep accessories manufacturers JCR Offroad and Nitro Gear & Axle. All the while, his free time was filled with the world of Jeeps, including other trail and off-road enthusiasts.

Then in 2018, when his wife was pregnant with their first child, the Cohrons moved home to Georgia and in March of that year, he opened Black Bear Off-Road in Buford, Ga., about an hour north of Atlanta.

Since day one, tires have been an important part of Cohron’s business. The first piece of equipment he purchased

34 2308MTD_34-37_LT_Tires.indd 34

The Black Bear Trail Team is a group of customers who, alongside Cohron and his employees, participate in trail clean up projects and off-road events and also regularly gather for dinner.

Photo: Black Bear Off-Road

Brad Cohron has been working on Jeeps for the last decade and opened Black Bear Off-Road in Buford, Ga., in 2018. The business is 90% focused on Jeeps, but also offers light truck tires and accessories for pickups and other vehicles.

Photo: Black Bear Off-Road

was his tire machine. “No matter what you do on a Jeep, people want a bigger tire. That’s the bread and butter — lift kits and putting those tires on.”

ONE JOB AT A TIME

Cohron works alongside his team of three technicians — two full-timers and one part-timer — and they typically all work together on one vehicle at a time. His shop is “small and mighty,” as he calls it, with about 1,600 square feet of space and two service bays.

“We’ve found it’s best not to have guys working on two vehicles (at the same

time). We are looking to expand in the next few years, so we can fit more guys in the shop.”

And while they specialize and service all kinds of vehicles for the off-road segment, Cohron says “about 90% of our business is modified Jeeps.”

In the early days Black Bear Off-Road’s mechanical service menu included work on both motors and transmissions, but Cohron says “we’ve dialed that back to maintenance — steering, alignments, brakes.” The motor and transmission work was “taking away from the time we could be doing the bolt-on accessories.

MTD August 2023 8/8/23 12:25 PM

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Light truck tires And that’s not the work people think of when they think of us.

“One thing that we do that’s a specialty is we re-gear differentials. Typically you only see that in the hot rod world or with off-roading with really big tires.”

‘GRIN AND BEAR IT’ ECONOMY

One benefit of serving such a specialized niche of the market in a small shop is that every customer ticket is scheduled on the calendar. That means there’s no rush of customers at the sales counter and there’s also no need to maintain an inventory of tires or automotive parts for surprise tickets that pop up during the day.

“We’re typically booked out two-tothree weeks at a time,” Cohron says.

And being close to Atlanta provides access to “some really good distributors, so we’re typically able to get tires within a day.”

Even before he opened the doors of Black Bear Off-Road, Cohron says he had go-to tire brands. “I have liked and I still like Nitto and Toyo. I have used those two brands for the last 10 years and have been happy with them. In the last two years ,we’ve been doing more Yokohama and a lot more Falken.

When I’m quoting (prices for) people, those are the four that I’m almost always mentioning.”

During the pandemic, when tire supplies were limited and inconsistent, Cohron says he thinks some brands were able to capitalize and find new customers. In the off-road world, he puts both Yokohama and Falken in that category.

Since then, Cohron says customers who tried those brands “found they like them and are asking for them” when buying another set of tires.

Unlike a typical tire dealership, Black Bear Off-Road isn’t presenting most customers with good-better-best recommendations or ranking tires by tiers.

“There’s not very many brands that exist that are in that low tier that are reliable that we recommend.

“There’s a lot of what I call Amazon tires — brands you’ve never heard of before. People will sometimes bring those in, but the people who are serious about this” want quality tires.

That means his customers have come face-to-face with the price hikes of the last few years.

“They grin and bear it,” says Cohron.

“It’s an expensive hobby.”

He says the uneasy economy “hasn’t affected our business that much, because

36 2308MTD_34-37_LT_Tires.indd 36

Tires have been a key part of Black Bear Off-Road’s business since day one. Lift kits and tire installations are a major contributor to sales, which in 2022 totaled $600,000. The dealership is usually booked out two- to three weeks in advance.

Photo: Black Bear Off-Road

(customers) are willing to pay. Tires are one of the most expensive parts of the build.

“For some of our customers, one tire costs as much as a passenger car’s set of tires.”

Customers continue to opt for larger light truck tires. Cohron says the most commonly sold tire at his shop is a 35-inch tire.

Most customers spend in the range of $1,200 and $1,500 for a set of four tires and a good number of those customers add a fifth tire for the spare.

But some customers spend even more.

“We’ve done 42-inch tires, where the customer spends $650 a tire.”

When other tire dealers are worrying about the effects of the economy, Cohron says he’s seen his business — and the offroad industry — sustain throughout any downturn.

He had his first glimpse of that stability when working for aftermarket suppliers.

He attended trade shows and events and saw there was a core customer group that was willing to spend even when shoppers in other parts of the economy were pulling back. And in Buford and the greater Atlanta region, “I knew the demographic existed in our area.”

While Black Bear Off-Road is able to withstand economic downturns, that doesn’t mean it’s totally immune to its effects.

“One thing we’ve seen is when interest rates are down, we work on new Jeeps. And when rates are up, (customers are) revising their existing vehicles. They’re holding onto their used cars longer. We see more used vehicles than new vehicles, currently.”

When working on these vehicles, does age matter?

“The prices are the same, but I prefer

a new vehicle. No rust. No mud. No one has messed with them before us.”

Cohron says plenty of Jeep drivers and off-road enthusiasts will sometimes experiment with do-it-yourself projects.

“Our business is fixing their DIYs,” he says. “That’s how I got started.”

BUILDING A COMMUNITY

Cohron and his team are all authentic off-road enthusiasts, which means they spend their workdays in the shop and their free time on trails and at events.

This prompted the creation of the Black Bear Trail Team, a group of enthusiasts who gather regularly for dinner, trail projects and just to ride together. The company hosts Jeep nights and volunteers to clean up area trails.

Through social media, they solicit help from other enthusiasts to assist. “That’s unique. If you’ve got an oil change shop, you’re not normally hanging out with your customers,” says Cohron.

Social media has become an important part of Black Bear Off-Road’s business.

YouTube is Cohron’s favorite platform, but he’s found the biggest audience on TikTok. And while the shop has its own social media footprint, Cohron is known as “Jeepin Bubba” on social channels, and on TikTok he’s accumulated 30,000 followers. He also posts on LinkedIn. “The thing that has worked for us on TikTok is that people are so used to dancing, when you do a Jeep video, it’s something different.

“I also post a lot on LinkedIn, because people are usually posting there about business, so they see my content and say, ‘I have a Jeep.’ So we try to post where it’s not as saturated.” ■

P

J

MTD August 2023 8/8/23 12:25 PM

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Wholesale distribution

‘More professionalized’

CONSTANT INVESTMENT HELPS CANADA TIRE SEIZE OPPORTUNITIES By

Mike Manges

C

anada Tire Inc. had a big customer list when Gabriel Granatstein became the company’s CEO several years ago.

However, not long after his arrival, Granatstein discovered that only some of those accounts were being contacted by Canada Tire’s sales reps on a regular basis.

“On paper, we had a lot of customers, but in practice, only a small percentage were buying regularly from us,” he says.

“What I saw very quickly is that even if a sales rep had 200 customers, the same 10 names were always popping up in their reports. Our team focused only on the big accounts.

“We were too concentrated,” which he says “was a bit scary. We didn’t have a systemized way of ensuring we were calling on all customers regularly. And we didn’t have any way of ensuring customer requests were being followed up on.”

Canada Tire has one large distribution center in Mississauga, Ontario, which is near Toronto; three warehouses in Quebec (Valleyfield, Sherbrooke and Levis) and three distribution centers in the Maritimes.

Photo: Canada Tire

A change was needed.

Granatstein introduced a customer relationship management (CRM) tool, “which was a new concept for our business.”

Once implemented, the CRM tool allowed Canada Tire’s sales reps to run reports on how many clients contacted — and ordered from — the company “in a given week or month.

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“More than that, it was a form of a Trojan horse that allowed us to collect data, see trends and ensure we were servicing our customers properly.”

Within a year, Canada Tire’s sales increased significantly. “And I see more opportunities for growth in our future.”

DIVERSE CUSTOMER BASE

Canada Tire — which was founded nearly 100 years ago by Granatstein’s great-grandfather, Louis Wiseman — has one large distribution center in Mississauga, Ontario, which is near Toronto.

It also has three warehouses in Quebec — in Valleyfield, Sherbrooke and Levis — and three distribution centers in the Maritimes.

The company’s footprint “allows us to serve the vast majority of urban centers in eastern Canada,” according to Granatstein.

Canada Tire’s warehouses in Valleyfield and Mississauga are the company’s “core centers.” Both hold 100,000 to 150,000 tires at any given time.

The other distribution centers stock anywhere from 20,000 to 40,000 units each.

“In terms of transport, we like to work with local carriers or companies that we know will offer above-and-beyond service.

“This does create a situation where each distribution center has a slightly different make-up for delivery,” but the end goal remains “providing the best service possible.”

Independent tire dealers make up the bulk of Canada Tire’s clientele. “Typically, these customers have revenues in the $300,000- to $3 million-a-year range.

“We also have a strong mix of car rental companies and fleet accounts that provide us with diversity.” Avis, Budget and Enterprise are among the customers.

“There are hubs and service centers that car rental companies have, where they store vehicles,” says Chris Moody, Canada Tire’s director of sales.

Successfully serving car rental companies means “making sure they have proper tire inventory” in those places “and also making sure we have the ability to get tires” to individual vehicle rental outlets, including ones at airports.

Service trumps price when supplying tires to car rental companies.

“The most important thing is reducing their downtime,” says Moody.

“The faster we can ship tires, the less downtime they have.”

Canada Tire also ships tires to ride “When I started, we were spending our marketing dollars going after consumers,” says Canada Tire CEO Gabriel Granatstein. “I realized that wasn’t an effective spend. The guy or girl behind the sales counter” at tire dealerships “really controls the purchase.”

Photo: Canada Tire

share services — “in a lot of cases, through third parties, some of which offer mobile tire installation,” adds Moody.

Granatstein says Canada Tire’s product mix has evolved over the years.

“At tier one, we only sell Pirelli. In the second tier, we sell Falken, Nexen and Cooper.

“We pick brands our competitors don’t sell.

“Our customers like selling these hidden gems that are more profitable for them and save their customers money.”

Canada Tire also owns and sells three brands that are exclusive to the company — Minerva, Ovation and Maxtrek — which are manufactured in China and are marketed as entry-level lines.

“We put a 30-day trial and road hazard warranty on everything we sell, including those tires.”

Like other tire distributors, the company has seen customers gravitate toward lessexpensive products.

“Given the choice of paying $2,000 for a set of tier-one tires or $1,500 for a set of tier-two tires, they’re going to pay $1,000 or less for a third-tier set,” says Granatstein.

MTD August 2023 8/8/23 12:25 PM

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Wholesale distribution SELECTIVE STRATEGY

“Part of our strategy is to not carry every tire brand under the sun,” notes Granatstein, a decision he says Canada Tire’s dealer customers appreciate.

“They are looking for — and want — simplicity. When you have rapidly accelerating technology and product releases and an explosion of sizes and dimensions on new vehicles, we find that decision-makers at our customers are more conservative with carrying inventory.

“They just can’t predict what will roll into their shop and what, specifically, that vehicle will need. This creates pressure on us to ensure that we’re doing the proper analysis and have the right products available to them at the right time.

“We’ve had to create new tools to ensure we use all the data available to us (and are) as efficient as possible and (can) effectively predict demand,” he says.

“The situation has helped us make a large jump forward in terms of technology, process and sophistication in our purchasing.”

Canada Tire’s marketing has become more targeted, as well.

“When I started, we were spending our marketing dollars going after consumers,” says Granatstein. “I realized that wasn’t an effective spend.

“The guy or girl behind the sales counter really controls the purchase. We now spend our marketing dollars targeting that person. We don’t spend any money marketing our brands to the public.”

‘MORE PROFESSIONALIZED’

Over the years, Canada Tire has become “a more professionalized company,” says Granatstein.

“We’re in our fourth generation now and have grown with the people we have.

Everyone was a jack of all trades,” in the past.

“But as you grow and your numbers get bigger, you need more expertise.

“As we’ve aged out of certain team demographics, we’ve brought in new people who are more specialized” than their predecessors.

“We’ve focused on retraining existing staff and keeping people focused on their lanes, while keeping everyone aware of what’s going on, so we’re all paddling in the same direction.

“The old saying was, ‘You can only hire people from within the tire industry.’

I think Chris (Moody) and I are evidence that people can be trained.”

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Before he joined Canada Tire, Granatstein practiced law at a large firm, Norton Rose Fulbright, and before that, was an attorney for mass retailer Target. “I was hired to help launch Target’s business in Canada.” (He also is a Canadian Army veteran and still serves in the reserves.)

When Granatstein started at Canada Tire, “I learned quickly that no matter how much I learned about tires, I was never going to have as much experience as our customers.

“I also realized that what our customers care about is that the tires we sell are high-quality, that we stand behind our products and that we care about them.”

Quebec, with a main support center in Burlington, Ontario, plus regional offices throughout Canada.

Granatstein sees consolidation as an opportunity instead of a stumbling block.

“We obviously do see the size and strength of the larger players in the landscape that have grown through acquisition,” he says.

“But we also see many healthy, smaller regional wholesalers that are still driving business through relationships and local presence.”

Granatstein doesn’t foresee Canada Tire adding distribution centers or moving into new provinces in the short-term.

“I think we can continue to take market share in Quebec, Ontario and eastern Canada,” says Granatstein. “I’m more interested in expanding in those areas and piggybacking off our existing distribution centers.”

Photo: Canada Tire

Recruiting from outside the tire industry also “has allowed us to gain new and diverse perspectives,” adds Moody. “It has allowed us to be more creative and entertain more interesting ideas. We’re doing things we haven’t really seen before.”

CONTROLLED GROWTH

The Canadian tire industry has seen its share of consolidation in recent years — particularly at the wholesale level.Several months ago, Distribution Stox, which is headquartered in Quebec, announced its intention to acquire Edmonton, Albertabased North Country Tire Distributors, which has warehouses in Alberta, British Columbia and Manitoba.

Another quickly growing company is Groupe Touchette, which finalized its purchase of American Tire Distributors Inc.’s Canadian subsidiary, National Tire Distributors (NTD), in September 2022.

The combined Groupe Touchette/NTD business is headquartered in Montreal,

“I think we can continue to take market share in Quebec, Ontario and eastern Canada. I’m more interested in expanding in those areas and piggybacking off our existing distribution centers.

“If we thought we’d maximized sales in the provinces we’re already in, then we’d move westward. But we aren’t there yet.

“The most important thing we’re working on is replacing the computer system that governs our entire business, from financial to operational.”

He says the initiative is decidedly “less glamorous” than opening new warehouses.

“The system we have is quite old.

Upgrading it will set the stage for us to continue to grow properly and efficiently.

“We’re at the point where we need to change the structural underpinning of our business It’s like going to the dentist. You have to do it. But it will set the stage for more distribution centers over time.” ■ MTD August 2023 8/8/23 12:25 PM

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Auto service

How to keep diagnostic work in-house FOCUS ON THE RIGHT TOOLS — AND DON’T FORGET TRAINING By

Madison Gehring

“T

he accepted knowledge is that 11% of vehicles on the road have the check engine light on,” says Jim Fish, chief marketing officer of Opus IVS, the intelligent vehicle support division of Opus Group.

Fish says that when it comes to engine and other diagnostics, customers are more likely to put off bringing their vehicles into tire dealerships than when confronted with other service problems.

Dealers need to educate consumers about the perils of deferred diagnostics and maintenance, he adds. “Ignoring the check engine light could mean ignoring things that are doing more damage to your vehicle than you realize.”

For example, he says that a faulty oxygen sensor can cause excessive gas consumption.

“Another classic is if your brakes start to go and you wait, you often have to replace not just the brake pads, but also the rotors, which is a way more expensive job.”

By deferring maintenance, customers cause more damage to their vehicles and create additional expenses.

Fortunately, tire dealers have a great platform for encouraging drivers to use diagnostic services, according to Fish.

“When vehicles are brought in for a tire repair or new tires, it’s the perfect opportunity for dealers to do a full inspection and advise customers that there is more to their vehicles’ roadworthiness than the conditions of their tires,” he explains.

HELPFUL TOOLS

Fish says that the most important things for dealers to keep in mind when it comes to diagnostic services is that they should try to keep all work in-house.

“It’s important for dealers to invest and equip themselves with the tools and talent to be able to complete the work they identify as necessary,” he says.

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The DrivePro Unlimited has unlimited live support from technicians and the LivePro charges per use.

Photo: Opus IVS

“Both these tools have a help function that allows them to connect to Opus IVS dealership master technicians remotely to help them troubleshoot a difficult problem,” says Fish.

The MaxiTPMS ITS600 performs every aspect of TPMS service, including sensor activation, system diagnostics and onesensor programming.

Photo: Opus IVS

Photo: Autel U.S.A.

That is where tools from companies like Autel U.S.A., Opus IVS and TEXA USA come into play.

Daniel Bemiss, senior marketing manager for TEXA USA, agrees that it’s important to keep service in-house.

“The TEXA IDC5 diagnostic software provides OE-level coverage and support for cars, trucks, off-highway equipment, powersports and marine vehicles,” he says.

Features of the IDC5 include guided diagnosis; technical bulletins that technicians can access; access to TEXA USA’s iSupport call center, a guided fault-finding service with technical support; interactive data sheets; and more.

“TEXA dealers provide an extensive explanation of the OE-level coverage value and they provide a shop with a demo unit to test out for themselves for a period of time,” says Bemiss.

This is another way tire dealers can provide themselves with the knowledge and tools to keep work in house, he says.

More vehicles are coming with advanced driver assistance systems (ADAS).

“Everyone is talking about electric vehicles and hybrids, but what is actually making a bigger impact in repair shops is the presence of cameras (and) things like lane departure warnings or adaptive cruise control,” says Fish.

These ADAS systems can be “quite difficult.” Fish says Opus IVS offers two tools to help: the LivePro and the DrivePro Unlimited.

“Both tools have a function to connect to Opus IVS dealership master technicians remotely to help them troubleshoot a difficult problem,” says Fish.

The main difference between the two is pricing. The DrivePro Unlimited has unlimited live support from technicians and the LivePro charges for every use.

Addressing ADAS, TEXA offers the RCCS3 ADAS Calibration frame, which has three axis lasers that measure and confirm the precise vehicle centering and squaring.

MTD August 2023 8/8/23 12:25 PM

“The basic ADAS package includes the RCCS3 Bluetooth calibration frame, a 75-inch display monitor, Bluetooth distance measures and self-centering wheel clamps,” says Bemiss. “The Advanced ADAS package comes with all of that and blind spot cone support kit and more.”

According to Bemiss, a big trend is relying on “a diagnostic tool that provides remote diagnostics” or “the ability for the shop to pay a higher premium for each project, for an outside team to complete the diagnostic service.

• 3D Mobile Wheel Alignment System • Fully automatic. Beam can be moved up and down • Compatible with all car lifts including 2 post lifts and mid-rise scissor lifts • Shortest distance of rolling run-out compensation in the industry, no need to wait during rolling • Dual display screens TEXA offers the RCCS3 ADAS Calibration frame, which has three axis lasers measure and confirm the precise vehicle centering and squaring.

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“When you rely on a higher-quality diagnostic provider, the step-by-step diagnostic instructions and advanced vehicle coverage allows you to keep more of that repair profit margin,” says Bemiss.

Autel U.S. offers its Autel MaxiTPMS ITS600 tool and the electric vehicle diagnostic upgrade kit for diagnostic services.

The MaxiTPMS ITS600 is an Android tablet that performs every aspect of TPMS service, including activation of all-known sensors, system diagnostics and one-sensor programming — while providing 99% vehicle coverage. It also displays vehiclespecific position relearn instructions.

Having the right diagnostic tools is just the beginning. “Our technical training webinars have been effective marketing tools for us,” says Allison Whitney, content manager, Autel.

“Not only are we sharing our expertise by demonstrating diagnostic and repair techniques, but we are also able to utilize our products’ advanced features.”

Autel also uses its AutelTools YouTube channel to release product information and announcements. It allows the customer to “see products being used in a professional environment.”

Autel also has created a training facility at its headquarters in Port Washington, N.Y. “Training our distribution network has always been a priority at Autel,” says Whitney.

“A sales force equipped with product knowledge and the ability to have an informed conversation about the needs of the customer is crucial. Salespeople are then able to recommend the ideal Autel product for their needs. This has been a winning strategy for us.” ■

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Commerci al T ire De aler™

COMPLETING THE PUZZLE BILL MORGAN TIRE HAS OPENED A RETREAD SHOP

By

Joy Kopcha

B

ill Morgan III has been around tires and the tire industry his entire life. Both of his parents worked in the industry and after his father retired and sold his business, the younger Morgan — at the age of 26 — started Bill Morgan Tire Co. In four short years, Morgan’s Kentuckybased business has grown to encompass three commercial service locations, two foam fill shops, 13 service trucks and, as of 2023, a 30,000 square-foot retread plant.

The ContiLifeCycle plant began producing medium truck tires this spring and Morgan expects the single-chamber plant to retread 4,000 tires in its first six months of operation. Annual capacity is 18,000 tires and there’s room to expand, he says.

“We were lacking in the retreading side of the business. We think that’s the final piece to our puzzle (to) make us complete and make us a unified tire dealer that could handle any commercial situation that could arise with commercial and industrial tires.”

His three commercial service centers in Lexington, Richmond and Corbin span about 100 miles of Interstate 75, but service calls, especially for large earthmover tires, carry Morgan and his team into the neighboring states of West Virginia, Indiana, Ohio and Virginia.

Retreading customers are more concentrated in the Kentucky market, centered around the Lexington plant, he says.

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Bill Morgan Tire Co. opened a ContiLifeCycle retread shop in Lexington, Ky. Bill Morgan III, right, owns the business, and followed his father, Bill Morgan Jr., left, into the tire industry. They posed with the plant’s first retreaded truck tire.

Photo: Bill Morgan Tire Co.

“We deal with a lot of commercial construction businesses, but we’re looking to involve ourselves more in the larger, line-haul fleet segment,” and capture national fleet accounts, too.

“We aligned ourselves with Continental Tire. Continental didn’t have any distribution in this particular market.

We fill a gap in their distribution as well as bring a different retreading product to the market,” says Morgan. “We deal in a marketplace that’s saturated with Bandag retreaders and Goodyear retreaders and to bring something into the market that’s unique seemed like a good way for us to go to market and not have any competition with the same product.”

BECOMING A ‘COMPLETE’ DEALER

Even though Morgan is still a relatively new business owner, the process of opening a

new retread plant has been long in the making. And like so many other construction projects in recent years, this one was plagued with some supply chain setbacks and delays.

“We started on this a year ago. It was quite a struggle getting all the equipment and getting everything together, getting the electrical work done, getting the fuse boxes and the transformer set. It took us six months to get it all lined out.”

But by June, production was running.

And Morgan had orders from his commercial customers.

“We had customers lined up. We had developed a customer base. We had been subcontracting the retreading out to (other dealers previously).

“With Continental we’re developing the Continental national accounts in the market and working through those channels.”

MTD August 2023 8/8/23 12:25 PM

Retreading And then there’s that traditional form of marketing — “word of mouth and beating the streets.”

The dealer Morgan had relied on for retreaded products was acquired by another company about a year ago.

“To be that complete tire dealer, you can’t be outsourcing something as large as retreading. That’s such a key aspect of the commercial business.

“We style ourselves as a tire company that can handle anything from a wheelbarrow tire to a Caterpillar 994 tire.

“Big or small, we do them all. We have to be very diversified in our markets.”

‘JUST GETTING STARTED’

While Morgan is focused on all the internal components that will help him grow his business, there are external factors at play at his company.

One is staffing. With 25 employees on payroll already, Morgan says he could “definitely add more people into the retread plant.”

And he’s pleased that it appears the hiring tide is changing.

“It seems like the market has cleared up a little bit. We’ve had more luck as of late recruiting employees and maintaining employees.

“We’ve done that through a lot of training, a lot of incentivized bonuses and being more accommodating to their needs,” he says. “It’s definitely been a trying situation the last few years.”

Bill Morgan Tire has added hiring bonuses, better insurance and retirement plans and production bonuses for employees.

The changes brought on by merger and acquisition activity in the industry is another force. Morgan calls it “a doubleedged sword.

“It seems there’s a lot of baby boomers in the marketplace getting swallowed up by larger conglomerates. With the lack of millennials and Gen Xers entering the marketplace, there’s definitely an opportunity for a more regional, locally owned style tire company in my opinion. There are some segments that demand a localized, specialized tire dealer… who understands (the customer’s) needs.”

Bill Morgan III says he wanted to add retreading to his business, but also wanted to offer a product that wasn’t already available in his markets along Interstate 75 in Kentucky. He partnered with Continental and uses the ContiLifeCycle process.

Photo: Bill Morgan Tire Co.

Retreading is an avenue for expansion.

The ability to provide customers with retreads that are produced inhouse makes Bill Morgan Tire a more complete commercial tire dealership, its owner says.

Photo: Bill Morgan Tire Co.

He cites the giant tire business, construction and mining segments as examples of customers who need local service rather than “a cookie-cutter or a conglomerate that’s operating in 17 states.

“I see it as more of an opportunity than I do a stressor,” says Morgan.

“I like to think I’m just getting started.

I would like to grow the business and diversify into different marketplaces and continue to grow with good partners like Continental, continue to gain and develop good quality people and continue with the great employees we currently have.”

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Truck t ires

CONTINENTAL’S DIGITAL SOLUTIONS COMPANY ALSO PREVIEWS NEW COMMERCIAL TRUCK TIRES

By

Mike Manges

C

ontinental Tire the Americas LLC’s commercial tire dealers will play a key role in delivering the benefits of the tire manufacturer’s suite of digital tire monitoring solutions.

That includes the company’s ContiConnect Live system, which Continental officials demonstrated during ContiXperience, a recent event at its proving grounds in Uvalde, Texas.

Continental also previewed several commercial truck tires during ContiXperience.

HOW CONTICONNECT LIVE WORKS

Unveiled this past February, ContiConnect Live is a cloud-based solution that provides real-time, digital tire monitoring.

Sensors inside tires track air pressure and temperature, among other metrics, and transmit the information to a telematic unit or Bluetooth dongle and driver app.

Data is then forwarded to the ContiConnect Live web portal and can be viewed on a mobile device or computer.

Commercial tire dealers also receive alerts via ContiConnect Live, Shaun Uys, head of Continental U.S. market truck tires, replacement, told ContiXperience attendees.

ContiConnect Live is a cloud-based solution that provides real-time, digital tire monitoring. Captured data is forwarded to the ContiConnect Live web portal and can be viewed on a mobile device or computer.

Photo: MTD

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ContiConnect Live offerings include a stand-alone trailer solution, which allows unhooked trailers to be monitored for GPS location, tire pressure and temperature and mileage; and the ContiConnect Yard reader, which is designed for trucks that frequently return to a central location and allows fleet checks to be performed without touching any tire.

ContiConnect Live also is available for long-haul and regional fleets that do not return to central locations often.

More than 200 fleets throughout the United States are using ContiConnect Live, according to Carolina Wagner, head of marketing and digital solutions sales, truck tires, U.S. “Around 30,000 tires are connected,” she said. Currently, most of those tires are monitored by the ContiConnect Yard reader, “which can monitor 10 trucks, 100 trucks or more.”

Continental commercial tire dealers will play a vital role in the successful administration of ContiConnect Live, Wagner told attendees.

“They are the key piece because they service so many fleets,” she said.

SCANNING MADE EASY

Continental’s digital solutions offerings will eventually include a smartphonebased tire scanning app, company officials revealed during the event.

Now in development, the app “will use a camera in your smartphone to take a three-dimensional picture of the tire and can measure tread depth,” said Trey Thompson, field engineering manager.

“It’s the same technology used in facial recognition. You can zoom in and out.

You can grab (the image) and rotate it.”

The app will recognize Continental tire sensors. “All you have to do is walk up and take a photo of the tire and (the app) will connect with the sensor.”

Captured data will be forwarded to the ContiConnect portal.

In addition, Wagner told attendees

Continental displayed two new tires that will hit the market during the third quarter of 2023. The Conti HDR 5 19.5 is a regional drive tire that will be available in size 225/70R19.5. The Conti HSR 5 19.5, which has been specifically engineered for Class 4 and Class 5 trucks, also will be available in size 225/70R19.5.

Photo: MTD

that Continental will offer RFID in its “gen-five” truck tires next year. “We’re adding more and more technology to enable the tire to talk to us and talk to the truck.”

SPOTLIGHT ON PRODUCTS

Continental also demonstrated the capabilities of its new Conti Terra HD3 and a retread product, the ContiTread HDL 3LTL-R, during the ContiXperience event.

The Conti Terra HD3 is an off-road, severe-service tire available in two sizes: 225/70R19.5, in Load Range G, and 245/70R19.5, in Load Range H. The ContiTread HDL 3LTL-R retread product, which has been in market for a few years, was designed “for less-than-truckload applications,” according to Bridney Jordan, manager, product marketing, Continental.

In addition, Continental displayed two new tires that will hit the market during the third quarter of 2023.

The Conti HDR 5 19.5, a regional drive tire that’s available in size 225/70R19.5, features new tread compounding for improved rolling resistance and durability.

The Conti HSR 5 19.5 has been specifically engineered for Class 4 and Class 5 trucks.

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Service trucks

SAFE SERVICE IS GOOD SERVICE

RICE TIRE SAYS SERVICE TRUCK TECH SAFETY TAKES LOTS OF ‘VIGILANCE’ By

Madison Gehring

R

ice Tire Co., which is headquartered in Frederick, Md., has around 70 service trucks across its 11 locations.

There is a service truck driver for each vehicle and at least two service trucks at each location are on 24/7 call.

Brian Chase, Rice Tire’s president, says it takes lots of “vigilance and constant attention” to keep the dealership’s service truck technicians safe.

Safety seems to be the “first thing people forget about when they get busy,” Rice says.

That’s why Rice Tire relies heavily on inspections and location managers to keep technician safety at the forefront of employee’s minds.

SAFETY IN SERVICE

Each Rice Tire service truck technician must complete a pre-trip vehicle inspection and log that daily. Then every week, those logs are sent to the dealership’s corporate office.

“These daily checks involve checking for any leaks in the vehicle and checking the tires, brakes, lights, mirrors and doors,” says Chase “Then they check the emergency equipment.” (Each service truck has fire extinguishers, reflective triangles and any other tool the technician may need.)

After this 10- to 15-minute process is done and the location’s manager signs off on the inspection, the technician is ready to hit the road.

“From the vehicle side, we manage the preventative maintenance through a software called Fleetio, which alerts us when a (preventive) service needs to be done or has been done,” says Chase.

“We are able to use Fleetio to manage those things in order to try our best to keep the trucks as safe as possible.”

Rice Tire’s trucks also are equipped with hands-free calling, so technicians are able to easily access 911 in an emergency situation.

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Rice Tire Co. has around 70 service trucks at its 11 locations.

Photo: Rice Tire

‘TWO MAIN THINGS’

“We talk to our (technicians) about two main things when it comes to safety — one, where to park their truck when working on a vehicle in order to keep them and the vehicle safe.”

The second thing Chase insists upon is that technicians call the highway patrol or local police department and request blockage of a lane if the situation is unsafe.

An alternative is limping to the nearest exit and getting off the highway.

“We stress if it’s not a safe work environment, they need to take their time and make it safe before they start working.”

FIGHTING FATIGUE

Rice Tire has put many practices in place to combat technician fatigue.

“One thing we are really pushing for is to have our managers make sure they take care of the drivers and to have them keep a watchful eye on how much someone’s running and make sure they’re not running tired,” says Chase.

If a manager does see a technician showing fatigue, he will have the technician take the morning off and come back later or have them rest somewhere else.

“Driver fatigue is mostly (felt by) the guys who are running night calls.”

It’s up to the location manager to check

in with technicians each morning, which has multiple benefits, according to Chase.

“One, the managers get the paperwork from any calls the techs ran the night before, and secondly, they can address the driver’s state and how they are feeling.”

Chase says fatigue causes people to take shortcuts, which causes more mistakes and worse, injuries.

He says when service truck technicians try to push their minds and bodies past their limits, they put themselves — and Rice Tire’s customers — in a dangerous situation.

EXERCISE CAUTION

“The number one thing to remember when it comes to service truck safety is it’s not rocket science to take your time, do the follow-up protocols and when in doubt, always err on the side of caution,” says Chase.

Every month, the Rice Tire team holds a safety meeting.

During that meeting, the team discusses all aspects of in-store and on-road safety. On these days, the location manager will also inspect service trucks.

Safety and regional managers also can make surprise visits to Rice Tire locations to make sure “we’re not just getting it right one day a month,” says Chase.

“At the end of the day, changing a tire is worth no one’s life.”

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AG T ire Talk

IMPLEMENT TIRE TRENDS

RADIAL AND VF TECHNOLOGY ARE MAKING INROADS IN THE CATEGORY

With heavier equipment and road use more prevalent, BKT says small implement tires are being designed using radial technology.

Photo: BKT USA Inc.

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

QUESTION: Why are implement tires pivoting from smaller 15- and 16-inch sizes to larger overall diameter and section widths of 22.5-, 26.5- and 30.5 inches? Why are higher void ratio directional tread designs gaining popularity (I-2/I-3 vs I-1). Will steel belt/all steel casing become the norm, and will segment ultimately become all VF Construction?

DAVE PAULK, manager, field technical services, BKT USA Inc.: Implement tire designs and sizes continue to evolve and grow with the use of heavier equipment and wagons. The smaller 15-inch and 16-inch tires in a bias design have been used for a long time.

Since there are still many implements that use these sizes, they

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aren’t going away anytime soon. The 15-inch and 16-inch sizes are still used in large numbers in bias tires.

With heavier equipment and road use more prevalent, small implement tires are now being designed using radial technology to carry heavier weights at highway speeds (30-45 mph). Many are made with steel belts and stubble-resistant compounds to help maintain the integrity of the tire and provide added puncture resistance in the field and on the road. Some are IF and VF rated and can be run at lower air pressures in the field to minimize soil compaction.

BKT’s 19.5-inch and 22.5-inch I-1 radials are made with an all-steel construction. The 15- to 22.5-inch radial sizes are used on cultivators, planters/seeders, and a wide array of other equipment.

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AG T ire Talk Although smaller implement tires are still widely used, larger implement tires (flotation tires) have become more common because of the weight of the equipment and wagons and the load carrying capacities needed. The larger sizes include 22.5-inch, 26.5-inch and 30.5-inch with a few sizes of 32-inch available. These are used on larger implements such as planters and on liquid and dry manure spreaders in dairy and feedlot operations.

Some flotation sizes are used on larger hay balers. These tires are taller and wider to carry high loads on the highway at higher speeds. The wider width gives the tires good flotation when used in the fields and can spread out the weight of the load to minimize soil compaction.

‘Though smaller implement tires are still widely used, larger implement tires (flotation tires) have become more common.’

Dave Paulk, manager, field technical services, BKT USA Inc.

While most of the smaller implement tires, bias and radial, are made in an I-1 design (rib type tire), the I-2 and I-3 designs (traction treads) have gained popularity in the larger implement (flotation) sizes. As opposed to the I-1 design, this tire provides some traction in the field if needed. When used in wet soil and on hills, the traction design limits the side to side (lateral) movement. With the correct air pressures, the tires generally wear well in highway use. Most are used in pull behind the tractor operations, although there are some self-propelled applications.

More of the larger implement radial sizes are steel belted or made with all steel construction. Both are used to maintain the integrity of the tire while in use. Both also add puncture resistance to minimize downtime and damage to the casing. The all-steel casings increase load carrying capacity as most are VF rated. VF technology and all steel casings

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are becoming more available because of the weight carrying capacity and speeds needed for applications using these tires.

BKT makes both steel-belted and all steel radials in certain sizes.

GREG GILLAND, vice president, global agriculture, Maxam Tire North America Inc.: The agricultural tire industry is in a constant flux that is evolving the boundaries of tire technology to achieve greater productivity and performance. Today’s farmers and growers are demanding improved tire solutions to increase their crop yields, reduce soil compaction and achieve better value to increase their profits. Over the last 20 years, we have seen the agricultural market move from bias ply tires to radial tire technology which has been accelerating year over year, particularly in the +100 HP type machinery including tractors, floaters, sprayers and combine harvesters.

Due to the perceived acquisition price difference, we still see a large percentage of smaller tractors below 100 HP primarily using bias ply tires versus adopting the growing radial product that delivers improved performance and value. Year over year, it is evident that increasing crop yields remain the number one priority for any farming operation, especially when using equipment above 100 HP. This increased demand for greater productivity has driven a rapid change towards adopting radial tire solutions beyond heavy equipment to support equipment or implements with solutions that can lower the high tire inflation pressures required to carry the respective loads. This has fueled the movement to adopt radial tire technology despite its higher acquisition price when compared to current bias ply tires. This evolving trend includes cultivators, diskers, rippers, planters and more primarily using smaller implement tires from 14 inches up to 18 inches. The growing use of radial tires on both towed implements and tractors provides greater traction in the field, which is achieving improved productivity, fuel savings, and most importantly, larger crop yields through reduced soil compaction.

When comparing the various types of Implement tires in the agricultural industry we find that each tread design has unique features depending on their function, tread depth, and soil working conditions.

In the North American market, I-1 Rib Tread pattern accounts for 85% of market demand. And in that pattern, size 11L-15 account for 65% of the overall demand, with 9.5L-15 and 12.5L-15 following with 15% and 10%, respectively.

The demand for greater productivity has rapidly driven a transition from the above bias sizes to equivalent radial tire solutions that have incorporated the use of both IF and VF tire technology.

This technology shift is allowing new radial implement tires to carry 20% to 40% more weight at standard inflation pressures, or allowing the reduction of soil compaction by reducing the inflation pressure between 20% and 40%, which elongates the tread footprint and increases the flotation capability of the tires for each given load. In most instances, we are seeing the new radial tires being used at standard inflation pressures to carry heavier loads on larger implements, which improves farmers’ and growers’ productivity without compromising soil conditions.

‘We may see the market shift towards more tractive designs closer to the I-2 or I-3 tread types.’

Greg Gilland, vice president, global agriculture, Maxam Tire North America Inc.

Here’s how the bias ply implement sizes have been converted to radial tire sizes: • 11L-15: 280/70R15 • 9.5L-15: 240/80R15 • 12.5L-15: 320/70R15 In most cases, as the above radial sizes continue to evolve and adopt either IF or VF technology, we expect to see the utilization of both steel belts and steel casings to enhance the footprint and stabilize the heavier loads. The row crop applications in North America seem to dominate the primary and largest part of the implement tire market which overwhelmingly prefers the I-1 tread design over the more traction-oriented I-2 or I-3 tread designs. Currently, the radial portion of the implement market MTD August 2023 8/8/23 12:25 PM

AG T ire Talk only represents about 10% of the North American total implement tire demand, however, that number continues to grow rapidly year over year as more farmers or growers adopt radial solutions. We may see the market shift towards more tractive designs closer to the I-2 or I-3 tread types.

Maxam Tire currently offers bias ply products with all three tread types for implements. As the implement tire market continues to evolve from bias tires, Maxam will bring radial solutions to the market that will meet or exceed our customers’ value expectations.

In addition to the evolution of bias ply implement tires to radial solutions, we are also seeing a migration from bias ply flotation sizes to radial flotation sizes in the larger diameter 22.5-inch, 26.5-inch, and 30.5-inch wheel seats to meet the heavier towed tanker or cargo hauler applications. This evolution is happening at a faster rate each year as European-type towed machinery continues to drive global changes toward these high-load / high-speed platforms. The largest shift in technology is the move from bias ply tires to radial steel-belted or fully steel constructed I-3 flotation tires that deliver improved traction using both closed and open shoulder designs that address the various soil conditions. In addition, we are seeing a demand for new radial tires that have heavier load-carrying capabilities with D-rated heat-dissipating rubber compounds capable of speeds up to 40 mph (65 kph). The transition to D-rated tires is being driven by the faster road speed required to move the equipment from the farm to the field or to the market.

As tractors continue to grow in horsepower, we fully expect the radial flotation tire sizes to evolve as well using VF technology to increase load-carrying capacity and corresponding speed capability to support the heavier or more powerful machinery. Maxam offers the current FlotXtra full steel construction tire with a closed shoulder non-directional design to meet the heaviest load application. The new directional steel belted AgilXtra features an open shoulder and improved self-cleaning tread design. Both the FlotXtra and AgilXtra deliver the high load and D-rated speeds the market is seeking in towed flotation solutions.

DAVID GRADEN, operational market manager, agriculture, Michelin North America Inc.: Large farms are getting bigger and the number of people pursuing farming as an occupation is declining. In turn, the need to cover more land with fewer resources is driving the demand for larger machines and implements.

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As a result of growing farm sizes, producers are finding it necessary to spend more time on the road between plots of land. Extended roading can cause heat to build up, creating breakdown of rubber compounds that can ultimately lead to a shorter tire life span.

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AG T ire Talk alleviate this issue, tire manufacturers are designing implement tires with directional tread designs. This helps the tire to remain cool and slows the rate of wear by, both, creating flex and limiting flex in very specific areas of the rubber. As a bonus, engineered tread designs also add stability on slopes and stubble protection where it is needed most. Additionally, most tire manufacturers make tires for global needs. In most European countries, a producer is required by law to remove any soil or mud their machines release onto the road. For that reason, Michelin prides itself on designing tire treads to clean out mud quickly. Not only does this reduce the amount of road shoveling a producer is required to do, but it also significantly improves tractive capacity for those tires in powered positions.

‘It is imperative to fit your machines with the largest VF tires allowable.’

David Graden, operational market manager, agriculture, Michelin North America Inc.

Farmers are focused on improving crop yields, and Maxam says that is driving them to opt for radial tires in applications where less expensive bias ply tires are available, such as with implement tires.

Larger Sizes: One of the greatest challenges in the tire industry is machinery size. As machinery gets larger so does the need for tires that can carry the weight of those machines. From a tire perspective, the air chamber is what carries that weight and the rubber doughnut around it simply holds the air in place.

The heavier the weight, the larger the air chamber and tire needs to be.

IF/VF Technology: In the early 2000’s, Michelin invented IF and VF technology.

The purpose behind this was to increase carrying capacity without changing the tire size, due to limited space tires have to fit under machines. We did this by simply changing the flex point in the sidewall of that tire, which reduced the pounds per square inch on the tread and relieved the stress points on that rubber doughnut holding air in place.

Today VF type tires are becoming the standard. In fact, machinery size is growing so fast, larger tire sizes are needed in conjunction with VF technology simply

to carry the weight demanded by these large machines.

Go Large & IF/VF: On a final note, as these large machines get larger, the yield damaging soil compaction is almost inevitable. For this reason, it is imperative to fit your machines with the largest VF tires allowable.

Harper Adams University, in the UK, and University of Illinois Champaign Urbana have both proven VF tires set to the proper air pressure recommendations will reduce soil compaction and result in up to 4.3% improvement in yield of soybeans, corn and wheat. I am sure this additional yield will apply to other crops as well, but those studies have not been done yet.

For these reasons, tire technology will have to continue to evolve as machinery and farming evolves.

The tires under your machine are the only thing standing between a properly operating machine and complete efficiency and performance.

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Photo: Maxam Tire North America

CHRIS NEIDERT, marketing, training and development manager, ag, Trelleborg Wheel Systems: The implement tires today are not what your father used in the past. Implements have been evolving into larger sizes, heavier equipment and higher working speeds but still confined to be as small as possible.

These challenges require the tires to also evolve and shift from traditional bias low speed construction to high speed, high load capacity, radial construction tires.

To maximize crop yields and transport times, it is necessary to invest in high performance machinery. With new technologically advanced implement tires, you can increase the load capacity of your equipment, such as manure tankers, big forage wagons and slurry tankers while protecting the environment.

You need tires that will ensure long durability and superior performance both in the field and on the road. In the field, the tire needs to have excellent flotation and self-cleaning features. On MTD August 2023 8/8/23 12:25 PM

AG T ire Talk ‘In the field, the tire needs to have excellent flotation and self-cleaning features.’

Chris Neidert, marketing, training and development manager, ag, Trelleborg Wheel Systems

the road, it must deliver a comfortable ride and easy handling while providing increased stability and overall drivability.

This increase in load capacity requires stronger tire construction and a stronger bond between the tire and the wheel. Most of these tires require an increase angle of the bead seating area from 5 to 15 degrees to withstand these additional pressures and efforts. Tires and wheels designed with a bead angle of 15 degree can be identified as the rim diameter value ends in .5 (for example a 560/60R22.5) and designated as IMP.

Steel belts are used under the tread as part of the casing. This strengthens the casing to last longer and also flatten the tread face and make a wider footprint.

This helps with tire wear and vehicle stability. The wider footprint increases flotation and reduces compaction, protects the soil and improves crop yield.

Let’s talk about the tread. Many implement tires are being produced with different tread patterns. The goal is to enhance tread stability which translates to vehicle stability when the vehicle is fully loaded. Some patterns could be called directional, which will help channel water out from under the tread.

In order to keep road debris to a minimum, various methods are used to keep the tread from loading up with mud.

Reducing the amount of mud in the tread will translate to less road debris when the machine pulls out of the field and onto the road to go to the next field.

Terraces in the bottom of the tread grooves help reduce mud buildup.

The latest technology development in

implement tires is the offering of VF technology complementing the “conventional” radial construction. VF construction tires are designed to increase the load capacity at high speed, improving overall efficiency of the tire and implement. In field application it can be used at lower inflation pressure, delivering a wider and longer footprint and therefore reducing ground pressure and maximizing crop yield.

VF stands for Very High Flexion radial tire. The main advantage of this type of construction is it allows the tire to carry up to 40% more load than a tire “conventional” radial tire at the same air pressure and nominal speed. The ability to carry more weight will mean fewer trips, saving costs. If you are a manure tanker operator, this is a huge benefit.

This new generation of implement tires is being built with higher load indexes than in past years. The tire world has reacted to needing to be bigger and faster.

The new implement tires are not your father’s implement tires. ■

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Commercially Viable Toyo adds 19.5-inch sizes to drive tire

Bridgestone unveils straddle container tire

Toyo Tire U.S.A. Corp. has added 19.5-inch sizes to its Toyo M671A regional drive tire. “The newest size addition further broadens Toyo Tire’s M671A commercial tire application for urban and regional fleets, including 225/70R19.5 G/14 and 245/70R19.5 H/16 sizes,” say Toyo officials.

The M671A features Toyo’s advanced e-balance design, which maintains the tire’s tread profile, while reducing strain at the bead area and belt edge for greater stability and enhanced longevity under heavy loads.

TOYO TIRE U.S.A. CORP. www.toyotires.com

Bridgestone Americas Inc. has introduced the V-Steel Port Container Straddle (VPCS) tire for straddle container handlers used in port terminals and intermodal yards. The VPCS is engineered with enhanced load capacity and durability for extended tire life. The tire is currently available in two sizes: 450/95R25 and 480/95R25. Key innovations include a new tread pattern; a new, high-strength casing that delivers a 28% higher load index; and a cooler-running tire design that provides 40% higher max speed.

BRIDGESTONE AMERICAS INC. www.bridgestonetires.com

Maxam adds to construction tire lineup Yokohama Off-Highway releases loader tire Yokohama Off-Highway Tires Inc.’s new Galaxy Hippo all-steel radial has been designed for loader applications. The tire “pushes traction to a whole new level for bucket loaders” and has a high-traction pattern that “is ideal for loaders working in dirt on construction sites or on farms and dairies,” according to Yokohama OffHighway officials. The tire is available in sizes 20.5R25 and 23.5R25, and is “engineered to fit on existing rims while providing a larger footprint.”

YOKOHAMA OFF-HIGHWAY TIRES INC. www.yokohama-oht.com

Goodyear develops new Fuel Max tire Goodyear Tire & Rubber Co. has expanded its Fuel Max line with the addition of the Goodyear Fuel Max 1AD. The tire, available now in size 295/75R225, is designed for super-regional and less-than-truckload applications.

It features a new compound engineered for “the demanding high torque seen in super regional applications on single axle drive trailers,” say Goodyear officials. Other features include a hybrid lug-to-rib tread pattern for enhanced traction and lower rolling resistance; 3-Peak Mountain Snowflake-certification and more.

GOODYEAR TIRE & RUBBER CO. www.goodyear.com

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Maxam Tire North America is adding four all-steel radial tires to its construction tire lineup. “The MS901R, MS906R, MS907R, and MS917R deliver the superior advantages required for skid steer, backhoe and compact wheel loader applications, marking Maxam’s commitment to serving customers in the construction industry globally,” say company officials. The MS907R has an extra-deep L5 tread pattern to handle rough and rocky terrains.

The MS917R L4 has a deep blockstyle tread pattern.

MAXAM TIRE NORTH AMERICA www.maxamtire.com

GRI expands OTR sizes Global Rubber Industries Pvt. Ltd. (GRI) has added new sizes to its ag and OTR tire portfolio. The new Green XLR Earth 70 is available in size 480/70R24 and is made “with 37.5% sustainable material, providing an eco-friendly solution for farmers and construction workers,” according to GRI officials. The company’s Green XLR 85 is now available in fi ve sizes; 520/85R42, 520/85R46, 480/80R46, 480/80R50 and 480/80R50. The Green XLR 85 sports “an optimum, 45-degree load angle” for enhanced on- and off-road traction. The Green XLR 70 has a flexible sidewall for additional ride comfort and minimal soil compaction.

GLOBAL RUBBER INDUSTRIES PVT. LTD. www.gritires.com

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Focus on Industry

Hankook focuses on longer mileage NEW ION EV TIRE COMES WITH 50,000-MILE WARRANTY By

Madison Gehring

H

ankook Tire North America recently hightlighted its electric vehicle (EV) tires, the iON evo A/S (SUV) and the iON evo icept (SUV), during a ride-and-drive event in Portland, Ore. The event took place days before the ABB FIA Formula E World Championship Race. ( iON tires were supplied for the Formula E racing events by Hankook.)

The iON evo A/S is specifically made for electric vehicles and is an all-season tire that comes in 26 sizes. It fits wheels ranging from 18 inches to 22 inches in diameter and is available in speed ratings of H, V, W and Y. The iON evo icept is a studless winter tire that also fits wheels ranging from 18 inches to 22 inches in diameter and comes in H and V speed ratings.

Both tires are built with Hankook’s proprietary EVolution technology that focuses on tread wear minimization, noise reduction and grip.

“With the growth of the EV segment and a lot of performance demands associated with those EVs, I think you are finding that internal combustion engine (ICE) vehicle tires are not delivering the true (benefits) to EV owners,” says Rob Williams, president of Hankook.

“For example, we talked about range, wear and rolling resistance — basically all the characteristics you need to enjoy an EV — and iON can deliver on each of those points.”

Hankook uses a foam insert in its EV tires to reduce tire noise, says Williams.

The tires’ sidewalls also play a part in delivering reduced noise.

“We designed the iONs with very stiff sidewalls, so there is less flex.”

“Traditionally, that additional flex causes more noise. So when you take the inner foam layer, along with the sidewall and the tread design, you get a very quiet tire.”

The tires also use technology within their grooves to narrow the air path without losing intended features. Because of all of this technology, Williams says

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Hankook’s EV tires will be more expensive to manufacture and design.

The tires will be sold directly to tire dealers and through wholesalers.

MEETING EXPECTATIONS

The new Hankook iON evo A/S comes with a 50,000-mile warranty. Williams says this is important for consumers because traditional EV tires are getting less mileage — for example, in the 15,000to 20,000-mile range.

“Most vehicle owners are not used to that low mileage if they’ve been driving ICE vehicles,” he says.

“So 50,000 has kind of become the norm and customers are not prepared to replace tires every 20,000 miles.”

The iON evo A/S is specifically made for electric vehicles and is an allseason tire that comes in 26 sizes.

The tire is available in speed ratings of H, V, W and Y. Photo: MTD

The iON evo icept is a studless winter tire that also fits wheels ranging from 18 inches to 22 inches in diameter and comes in H and V speed ratings.

Photo: MTD

“With the growth of the EV segment and a lot of performance demands associated with those EVs, I think you are finding that internal combustion engine vehicle tires are not delivering the true (benefits) to EV owners,” says Rob Williams, president of Hankook.

Photo: MTD

In addition, battery weight makes EVs up to 30% heavier than ICE vehicles, according to the research Hankook presented, so the company created the iON evo A/S (and SUV) with EVolution technology, which is composed of highconcentration silica and eco-friendly materials to provide better mileage and wet performance.

WHAT’S NEXT?

Williams says the possible introduction of a Hankook brand light truck EV tire would depend upon demand from vehicle manufacturers.

“A good example of this demand is the Ford Lightning F-150,” says Williams.

“We have an OE fitment for that vehicle, but it is not the iON. But as we see the market grow from a light truck EV standpoint, we definitely will want to be at the forefront of that.”

According to Hankook’s research, 2028 is the likely tipping point for EVs to be widely accepted.

“Tire dealers and car dealers can look at EVs as a new channel of distribution, a new opportunity for additional profit and a chance to acquire new clients they didn’t currently have,” he says. ■ MTD August 2023 8/8/23 12:25 PM

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Focus on Dealers

Warren Tire Service celebrates 40th anniversary

NEXT GENERATION IS AT WORK ALONGSIDE 150 EMPLOYEES By

Madison Gehring

Q

ueensbury, N.Y.-based Warren Tire Service Inc., which has 16 locations, is celebrating its 40th anniversary.

The family-owned dealership, which has 150 employees, celebrated the occasion with a recent sale.

Bob Kellogg, Warren Tire Service’s president, says each Warren Tire location had tents, decorations, food and giveaways and offered deals on new tires and services — including free alignment checks — as part of the event.

“Many vendors, customers and associates, current and retired, came out to help us commemorate this milestone with a nice dinner party one night and barbecue the next day,” he says.

“Over 250 meals were served” and 40 tires, 20 brake jobs and 20 new batteries were given to customers.

The items were donated by U.S. AutoForce LLC, Autopart International and United Auto Supply, says Kellogg.

In addition, customers could buy a spring car care package that included a lube, oil and filter; 30-point safety inspection; tire rotation and more for $39.95.

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Warren Tire Service recently celebrated its 40th anniversary by holding a sale at all 16 of its locations.

Photo: Warren Tire Service

Customers also registered to win 10 $800 gift certificates towards tires.

Drawings took place during the event and customers walked away with their prizes.

LOOKING BACK

Warren Tire Service was founded in 1983

by Wayne Kellogg, Bob’s father. Bob was in high school at the time. The company had one location and four employees.

After serving in the U.S. Navy as a helicopter pilot, Bob joined the dealership in 1997, along with his sister, Denise.

In 2007, he took over as Warren Tire Service’s president.

He says the company has experienced constant changes in the tire industry, including “the expansion of tire sizes, designs, technology and reliability.”

The dealership also has changed how it approaches things. For example, it now owns its properties, rather than leasing them.

One of the company’s biggest challenges was coping with the COVID-19 pandemic.

Bob says his team “quickly adapted” and was able to keep all employees working.

“As an essential business, we never closed for even one day.”

Warren Tire Service’s growth has been “motivated by our exceptional associates and growing customer base,” he explains.

“My wife of 31 years, Ella, has been instrumental in keeping me grounded during this arduous process.

“We stay the course and see every challenge through together as a family. We are well on our way with a third generation.”

Bob’s nephew, Derek, and his wife, Shirley, along with their daughter, Megan, and son-in-law, Brian, all work for Warren Tire Service and are stockholders in the dealership.

Bob says he is also focused on “estate planning to ensure the future of Warren Tire — not just for the family, but also for the dedicated associates who make Warren Tire what it is.”

He believes that for a family business to last, communication and planning are essential.

Bob ensures Warren Tire Service has one-, five- and 20-year plans.

“There will always be setbacks and problems,” he says. “Work hard and smart every day. In the end, you just have to be better than the competition.” ■ MTD August 2023 8/8/23 12:25 PM

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Focus on Dealers

Flynn’s Tire nears 30 retail stores NEW OHIO STORE IS IN HIGH-TRAFFIC AREA By

Mike Manges Justin Davis, Ohio regional manager for Flynn’s Tire, talks with a new customer.

Customer service representative Mike Miller takes a call.

The new store has seven service bays.

Here, technician Travis Hernandez prepares to install new brakes on a customer’s pickup.

President Joe Flynn III visits with Zara Fournier, a retail specialist from Goodyear Tire & Rubber Co., at the Montrose, Ohio, store’s grand opening.

Photos: MTD

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lynn’s Tire & Auto Service continues to grow. The West Middlesex, Pa.-based dealership has opened its 27th retail tire location — a store located in the Akron, Ohio, suburb of Montrose.

The outlet is located in a high-traffic area near the intersection of Interstate 77, a major north-south highway, and Route 18, a busy east-west corridor.

“We are excited to open our 27th retail store in Montrose,” said Joe Flynn III, president of Flynn’s Tire Group, at the outlet’s grand opening.

“Th is new location allows us to better serve customers in Summit County and beyond, providing them with top-quality tires, automotive services and the exceptional customer experience that Flynn’s Tire is known for.”

The seven-bay store stocks more than 20 tire brands, including Goodyear, Cooper, Bridgestone, Firestone, Michelin, BFGoodrich, Yokohama and Hankook.

“Flynn’s also provides a wide range of automotive services, including brakes, wheel alignments, Valvoline oil changes and much more,” say Flynn’s Tire officials.

In addition to its nearly-30 retail stores, Flynn’s operates three commercial sales and service locations, as well as four wholesale distribution warehouses, including a 150,000-squarefoot distribution center in New Stanton, Pa., that opened this past February.

The New Stanton distribution center replaced an older warehouse in Greensburg, Pa., and more than tripled the Greensburg facility’s overall size and tire storage capacity.

Flynn’s Tire is tied for the 36th spot on the MTD 100, the list of the largest independent tire dealerships in the United States. ■

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Business Insight

Roadmap for success

EMBRACE THESE CHANGES TO ENSURE A PROFITABLE 2023 By

Dennis McCarron

W

e are now into the second half of the year.

By most accounts, tire sales have been f lat, but have been offset by rising auto service work.

Some of the increases in auto service sales can be attributed to the industry’s correct decision to continue to increase labor rates. (You should be charging at least $150 an hour, if not more. And you should be spending most of the proceeds from that increase on retaining employees through education and pay raises.)

As an overall industry, we have made great gains against the other trades, but are still behind, in general. So what changes are you planning for the second half of 2023?

By now, you are probably aware that many consumers are concerned about a possible recession and are pulling back on non-required spending. That means a probable dip in alignment sales, flushes and other maintenance-oriented work at your dealership. Typically, when this happens, tire dealerships try to increase car count.

An increase in car count usually comes from advertising oil changes or brake work and maybe air conditioning or electrical system checks.

Remember, a consumer in our industry has three main concerns: they want their vehicle to start, stop and be comfortable.

It is important that your service advisor probes customers about what level of vehicle inspection they are interested in. It’s OK if a customer says he or she doesn’t want an inspection. Our job is to advise — not sell.

You also can dig into your point-of-sale system’s vast database of existing customers and declined work. And with some add-on software, you may even be able to predict upcoming services and use targeted outreach like email or text messaging to remind customers you’re open and willing to service their vehicles.

Improved vehicle inspections are very important to a tire dealership’s success when consumers pull back on their spending habits. It’s critical to not miss good opportunities with customers who are still interested and are able to pay for repairs and maintenance.

On the tire side of your business, have you looked at your inventory this year? Should you make adjustments on the amount you keep and the tire lines or tiers you stock? Consumer sentiment has shifted to lower-tier tires. I’m not suggesting pulling away from recommending top-tier tires, but having the ability to meet customer expectations will be vital to your dealership’s financial success.

Employee recruitment remains a challenge for many independent tire dealerships as we move through the second half of the year. Have you had any success in recruiting new talent? It

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seems competent workers are getting harder and harder to find.

And while increases in pay and better working conditions help, you should also look into new ways to find employees. Putting a curbside “help wanted” sign or just listing a job posting on the internet won’t be effective. A truly multi-faceted approach to recruiting in today’s day and age is critical. If whatever you are doing isn’t working, try something else.

Quality education programs should also be on your radar.

Particularly, good evidence-based training on relationship selling is important when consumers start to pull back.

Sometimes when service advisors hear the word “no” from customers a lot, they either get aggressive in how they respond to consumers or they stop recommending services together.

‘Make sure your changes are meaningful and have a desired outcome you can track and achieve.’

Service advisors need to be empathetic to the customer’s needs, yet hold the line on presenting items that result from a good inspection and offering up various solutions to the customer’s problem. That is a learned skill.

Quality education programs in sales will be rooted in consumer behavior, communication and problem solving.

Quality education programs also will use a variety of methods to help students learn. There will be elements of group work, discussion, games and some kind of way to test retention.

You have to measure what your employees will walk away with after the time they spend in class.

Finally, what are you changing about yourself? It’s important for you, the boss, to make personal adjustments as the retail climate changes. Do you need to be more hands-on or maybe less hands-on? Is it time to bring back one-on-one meetings with employees to better understand what their day-to-day is like? Maybe you can read a book on leadership and take away a few pointers to help make you better at your job?

The second half of the year is a great time to look both in the rearview mirror and ahead through the windshield.

Just make sure your changes are meaningful and have a desired outcome you can track and achieve. ■ 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.

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Mergers and Acquisitions

ESOPs as an exit alternative

IDENTIFYING THE IDEAL INDICATORS, BENEFITS AND PITFALLS By

Michael McGregor

I

t’s estimated that 70% of private businesses in the U.S. never have a successful exit. While overall M&A activity among tire retailers, wholesalers and commercial tire dealerships remains active but noticeably slower, it’s harder for wholesalers and commercial tire dealerships to have a sale event as compared with retailers.

The reasons for this have to do with the nature of these businesses. Overall, tire wholesalers and commercial tire dealerships have lower margins than tire retailers. Earnings before taxes, depreciation and amortization (EBITDA) margins can be half of those of tire retailers, in some cases.

Lower margins, in many cases, make these businesses unattractive to all but a small handful of financial investors, like private equity groups, who look to invest, build a company up and then often sell to a larger private equity group.

If there is no larger private equity group that wants to take it from there, the odds of an exit decline, as they are left only with a pool of strategic buyers.

The strategic buyer pool may be limited to larger groups that sell the same brands and types of tires as the wholesaler or commercial dealership.

If you’re strong with Bridgestone, for example, you may only be attractive to another Bridgestone group.

If you are in the same geography as a larger version of you, a buyer may not even need nor want to purchase your business.

Only someone from another geography might, but then, the tire manufacturer might have some sway in that outcome, as well.

‘An ESOP does provide that sense of ownership employees have in the business.’

I encourage tire wholesalers and commercial tire dealerships that find themselves in those situations to not despair, but rather investigate how employee stock ownership plans (ESOPs) work and how they are viable alternatives in an exit. To learn more about the indicators of what makes a good ESOP, as well as the benefits and the pitfalls, I turned to Focus’ Corporate Finance Head, Bob Beard, who executes ESOPs on behalf of our clients.

“One of the ideal indicators that your company is a good candidate for an ESOP is to have a relatively young and stable workforce,” says Beard.

66 2308MTD_66-69_McGregor.indd 66

Eastern Tire & Auto Service Inc. in Rockland, Maine, joined the ranks of employee-owned tire dealerships earlier this year. Alvin Chase Jr. called the transfer of stewardship “a natural progession. Because of this transaction, we know the company will prosper and thrive for future generations, while continuing its culture of commitment.”

Photo: Eastern Tire & Auto Service Inc.

“You want the average age of the worker to be probably no more than mid-50s. The reason is you need to accumulate cash over time to be able to pay folks when they leave, because that’s how an ESOP works.

“And if you have an older workforce, you may not have enough time to accumulate cash if everybody’s going to hit 65, which is generally the age of retirement for a traditional ERISA plan,” he said. “As to the stability of the workforce, you don’t want a lot of turnover because you’re going to wind up with a lot of people with partial benefits and it gets very convoluted and expensive as you may be forced to reserve the cash now to meet the related ESOP obligation later.

“If over half my workforce has been with me over five years, then I’m probably a really good candidate,” says Beard. “And if the average age of my workforce is 55 or less, I’m probably a good candidate.”

He adds that rural tire dealerships with their relatively more stable workforce might be ideal candidates for ESOPs. There is no minimum revenue size or level of profitability Beard has in mind for an ESOP. “I did one ESOP where (the business) was $3 million in revenue and a classically challenging situation in that it was a very project-oriented, engineering busiMTD August 2023 8/8/23 12:25 PM

ness (that’s) very difficult to sell otherwise.

You probably couldn’t do an ESOP with a small proprietorship because you may not be able to raise the debt involved and there are ongoing expenses to managing an ESOP a business must be able to afford.

“Stability matters more than the EBITDA margins themselves.” continues Beard. “I know in any kind of retail and wholesale environment, you’re going to have cyclicality to some degree, but you want to be able to stomach the bad times.

And if the bad times come every five to seven years, which is a typical economic cycle, you can work through that. If it’s more cyclical than that, it’s difficult.

“I always say in an ESOP you should be able to get about 2x conservatively and generally expect 3x your EBITDA level in third-party bank debt,” says Beard, who adds that when a business has less debt on the books, more new debt can go directly to the owner in an ESOP. What are the top benefits of an ESOP for a tire dealer? “First, the valuation you get can be very fair,” says Beard. “And by the way, this valuation is always negotiated. The way it works is you have third party fiduciaries who are on the other side of the table. They’re the trustees and they have in their back pocket an appraisal that we aren’t privy to as advisors to a potential ESOP. But we are negotiating a price just like any other transaction.

Those appraisals are generally reasonable.

I haven’t seen a whole lot of ESOPs where the parties thought it was way out of line.

“For other benefits, let’s look at the company level first and then we’ll talk a little bit about the owner who’s selling,” he says. “At the company level, an ESOP is an attractive employee benefit that can be used in recruiting and retention.

It is the same as a company-sponsored, defi ned benefit plan, but one in which the individual employee does not have to contribute money into the plan.”

An ESOP supplements any other retirement plan or 401(k)that that company may have. If it’s a 100% ESOP, the company doesn’t pay any federal income taxes. This tax-exempt status comes into play when structuring and analyzing the debt load the business can carry. In a relatively well-run business, because the debt is generally conservatively structured and the company is shielded from taxes, you pay the debt off early.

The second benefit is that an ESOP does provide that sense of ownership employees

‘Rural tire dealerships with their relatively more stable workforce might be ideal candidates for ESOPs.’ have in the business. “Some people say, ‘Oh, if I’ve got 50 or 60 people, they’re not going to care about ownership.’ Well, yes, they do. And when that benefit starts to show up when they retire, if the company’s a real well-run business over time, the retirement benefit from the ESOP could well outstrip their 401(k).”

It also can provide some reassurance that the business is less likely to be sold anytime soon. So in that way, it’s also an employee retention tool, according to Beard. From the owner/seller’s standpoint, they basically get some immediate liquidity, depending on how much leverage is

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put on the business, with the rest of the valuation coming in the form of a seller note paid off over time — and potentially with equity kickers.

“Now there is some tax complexity to this,” says Beard, “and tax advisors need to be engaged prior to the adoption. But with proper structure, the owner of the business, when they receive the cash at closing, may actually reinvest that money in certain qualified securities and they don’t have to pay federal taxes on the reinvested amounts. It’s deferred. There are even ways for the seller to pull some of that cash out at closing and still defer the tax consequences.”

Now what about the top pitfalls to look out for? “The debt in an ESOP is very, very difficult to restructure,” says Beard. “In a non-ESOP company, if I’m a bank or a fi nancial institution that has lent you money and something goes awry, generally we can sit down and figure out a way to deal with it. With an ESOP, you have a trustee and that trustee has a fiduciary responsibility to the employees.

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Mergers and Acquisitions

Meridian, Idaho-based Commercial Tire Inc., one of the largest independent commercial tire dealerships in the U.S., established an ESOP in 2021.

Photo: Commercial Tire Inc.

It’s harder to cut a deal very easily. So there’s somewhat less flexibility in what I will call this sort of board of directorlevel decision.

“You’ve got somebody looking over your shoulder who doesn’t know a lot about your business. Now these trustees are very experienced and knowledgeable people. I

really have a lot of respect for them. But say, for example, you want to close a facility in a multi-location business and lay off employees. Guess what? You’re going to have to set aside money in the ESOP for the people that you just laid off. Now you don’t necessarily have to pay them that day, depending on their age, but you better be

putting it away. And the trustee will get in the middle of that decision.”

Another potential pitfall is ongoing annual expenses to maintain that ESOP. For a middle market company, that is somewhere between $50,000 and $100,000 annually. Additionally, if it was decided by senior management that the business should be sold, continues Beard, “in an ESOP, there is corporate governance involved there. Technically, the trust owns the shares, but the employees get a vote. And you cannot sell that business for less than the prior-year valuation.

Now that sounds OK on the surface, but as investment bankers, we really don’t like to see all those hoops that we have to jump through, where the valuation is set, as opposed to being driven by the market.” ■ Michael McGregor is a partner at Focus Investment Banking LLC (focusbankers.com/automotive/tire-and-service).

He advises and assists multi-location tire dealers on mergers and acquisitions. For more information, contact him at michael.mcgregor@focusbankers.com.

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Dealer Development

What happens when you ask more of your customers

HAVING HIGHER EXPECTATIONS IS A TWO-WAY STREET By

Randy O’Connor

I

’ve purchased three new vehicles in the past two years. All I needed was one. I’ve been on the consumer side of negative service experiences throughout this journey.

In early 2022, I purchased a sporty, yet humble, sedan from a manufacturer’s No. 1 dealership in the country. My first service came six months in and the appointment was simple and convenient. It was scheduled online with text reminders. A porter met me and escorted me to a service advisor — a really nice experience to start. While waiting, I received a text including a video of my vehicle’s inspection. All looked great, until it didn’t.

An oil leak was spotted. Ugh! Sparing you the details, which are quite lengthy and borderline Lemon Law, I’ll tell you that I was without my car for more than a month. Never once did I get a call without calling them for an update first. If you’re in my shoes, you wonder how any service provider with its customer’s interests in mind can get so backed up. The revenue they must be losing!

With the top half of the engine, the turbo and exhaust components removed and replaced, I wasn’t overly optimistic. Well, I wasn’t wrong. The temperature gauge spiked pulling into my driveway within 15 miles.

A couple months later, that car was replaced with the 2023 model. The pressures manufacturers put on their production throughout COVID were now evident. Loose rugs and rattling panels led me to walk away again. The dealership had every corner of consumer experience nailed, with the exception of communicating expectations. Fully digital and very convenient with all the amenities you could ask for, but their end product simply didn’t match.

Now, with a new vehicle, from a high-end manufacturer, I expected my experience to be different. Within 2,000 miles, I had a significant electrical safety malfunction, making the car nearly impossible to operate. I called and they offered me an appointment a month out. Yep, a month. I had to go directly to the service director and make waves to get anywhere. The loaner I was given looked like a shiny carnival on the highway with all its stickers and the interior cleanliness was simply unacceptable. I let 24 hours creep by each day before having to call for an update. Five days and a quick flash later, I got my car back. The car sat there for five days and was worked on for less than two hours.

For most of you reading this, I know what you’re saying. “Yeah, this is typical of car dealerships.” Well, sometimes consumers trust them more than you.

The fact that that car dealerships generally have the funds to mask a bad experience is one reason.

So where am I going with this? First, I’m extremely embarrassed by how the car industry treats its customers. In order for consumers to have choice in service providers we all need to support the Right to Repair movement.

70 2308MTD_70-71_OConnor.indd 70

As prices go up, so do customer expectations, says Randy O’Connor. “You’re all demanding more of your consumers, and like it or not, it’s perfectly OK that they demand even more of you.”

Photo: MTD

Second, make and execute promises. Even with the best of conveniences and technology, every shop is dependent on the person-to-person experience. Being straight forward and realistic with expectations is 100% the first step in ensuring a good experience. Third, to service the vehicles that have been sold in the last several years, you must invest in technology and training.

I’m frustrated by how few independent shops are able to perform one of their highest profit-producing services — alignments — on an ever-growing share of vehicles.

Now’s the time to figure out how you’re going to keep up with the changes in manufacturing.

It should be clear that price inflation also inflates consumer expectation. If that wasn’t true, our consumers would expect less for every dollar they spend. They don’t.

You’re all demanding more of your consumers, and like it or not, it’s perfectly OK that they demand even more of you.

You’ve leveraged your price matrices, adjusted efficiencies, raised labor rates, etc. You’ve asked your customers for more than ever before. So far as I can tell, your profitability is up. There’s simply no good reason your customers should be receiving the same — or a lesser — experience. If you think you can drive growth on a strategy that doesn’t provide more when you ask for more, you’re dead wrong! We need to do our absolute best to exploit weaknesses in our industry by being service leaders.

A well-executed system built on shared expectations is a game changer. Does your game measure up? ■ 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 August 2023 8/8/23 12:25 PM

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8/8/23 12:25 PM 7/19/23 10:45 AM

EV Intelligence

Making the leap

HOW THE GOVERNMENT CAN HELP YOU MOVE TO EVS By

Craig Van Batenburg

W

hen big business is regulated — for any reason — taxpayers chip in and help out. Employee retraining is often on the list.

Unfortunately, sometimes employees do not want training, so it’s met with resistance.

We are in one of those times.

To date, 13 states have adopted a zero emissions vehicle (ZEV) program; California, Colorado, Connecticut, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont and Washington.

It makes sense that if a government regulation makes a transition in any industry, that same government should help employees and company owners in the retraining of those who are affected. Why would the motor vehicle repair industry be any different?

In the state of Massachusetts, where I live and work, a motor vehicle technician can be defined as a “fossil fuel worker.” The environmental impact of this type of job can have a negative effect on the health of everyone in a shop who is not careful with air quality, as well as those who work with carbon-based chemicals.

The changeover to electric vehicles (EVs) will automatically make tire dealerships and other auto repair facilities healthier places to work, but first we need to learn the ins and outs of EVs, including EV training.

A recent search on the www.energy.gov website for “automotive mechanic retraining” that I performed netted 668 hits. I initially used the term “technician,” but the old word “mechanic” is more common in government lingo.

I discovered there is no retraining for us. The U.S. Department of Labor listed 367 articles, but alas, we were excluded. Looks like the federal government is not there yet.

What can your state do to help you out? I went to the California.gov website and here is what I found; “California continues to lead the nation in the adoption of low- and zero-emission transportation and fuel technologies. To meet the need for a skilled workforce in the state’s growing clean transportation and fuels market, the California Energy Commission’s Clean Transportation Program, formerly known as the Alternative and Renewable Fuel and Vehicle Technology Program, is investing in manufacturing and workforce training and development, working with a variety of public and private partners.”

Most of what I discovered while researching was that most of that job training is related to the EV charging infrastructure — not EV service or repair.

That dead-end brought me to the subject of procuring an EV charger for your shop. Go to https://afdc.energy.gov/laws/ recent and you will be able to look up your state. Your state may have a program like Massachusetts does — what I call a “charge-at-work” incentive.

72 2308MTD_72-73_VanBatenburg.indd 72

From the Mass.gov web site, “The Mass EVIP Public Access Charging Program” provides incentives for property owners or managers with publicly accessible parking to acquire and install Level 1 and Level 2 EV charging stations. Non-residential locations with publicly accessible parking are eligible.”

The agency funds up to 80% of the hardware and installation costs to a maximum of $50,000 per street address. Level 1 and Level 2 AC (not DC) electric vehicle supply equipment also must be sold and installed in Massachusetts. That’s great for those of us who live in Massachusetts. But what if you don’t live or work here? What can you do?

‘It only takes a few minutes to get in touch with your representatives in local, state and federal governments.’

It only takes a few minutes to get in touch with your representatives in local, state and federal governments. Start with a letter. Yes — one that requires a stamp and envelope to mail, written on your letterhead. If you haven’t written to your elected officials before, now is a good time to learn.

In 1993, Deb Van Batenburg, who is my wife, and I got together with some other shop owner and created the first Automotive Service Association chapter in Massachusetts. I was the president and Deb was the vice president. Lessons learned in working with government were many.

Trips to Washington, D.C. were part of the job. We found some officials were helpful in making our shop — and the entire industry — better. Some were not. In those days, we were preparing for the implementation for a big update in the Clean Air Act, signed into law in 1990 by President George H.W. Bush. Change was in the air and it’s happening again.

Don’t give up. This is the biggest change we have ever seen to move to EVs and we can do this. And here’s another tip: if you don’t know your local school’s automotive program’s teachers by name, get over there soon and introduce yourself. Use President John F. Kennedy’s line: “Ask not what your country can do for you.

Ask what you can do for your country”. Your local school board is part of your government and that school is training your next technician. The responsibility does go both ways. ■ 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 August 2023 8/8/23 12:25 PM

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Products Snap-on upgrades SOLUS platform

Pirelli rolls out UHP tire

Snap-on Inc. has redesigned and upgraded its SOLUS platform with the SOLUS+ scan tool, including exclusive SureTrack- verified repair information and comprehensive coverage for domestic and import vehicles and motorcycles. The SOLUS+ has an eightinch touchscreen and connects easily to vehicles with Ethernet communication systems. SOLUS+ also receives software updates directly via Wi-Fi, with an applicable software agreement. Advanced features on the SOLUS+ include SureTrack for an enhanced diagnostic experience and verified part replacement records; quick lookups for technicians on technical bulletins; and more, according to Snap-on officials.

SNAP-ON INC. www.snapon.com

Pirelli Tire North America Inc. has released its newest ultra-high-performance tire, the P Zero AS Plus 3. The tire features a new tread pattern, compound and construction.

It also comes with a 50,000-mile limited treadwear warranty and is replacing the P Zero AS Plus. The P Zero AS Plus 3 joins two existing tires in the all-season Plus line — the Scorpion AS Plus 3, which is for CUVs, SUVs and pickups, and the P7 AS Plus 3, a touring tire for sedans and coupes.

PIRELLI TIRE NORTH AMERICA INC. www.pirelli.com

Sailun expands RoadX consumer tire line Sailun Tire Americas’ (STA) RoadX line now includes fi ve consumer tires, with a sixth on the way, as STA expands the RoadX brand’s range. According to officials, the new RoadX consumer tire line began last year with the RoadX RXMotion MX440, which is the company’s all-season broadline tire, available in 53 sizes, along with the RXQuest AT QX12. Sailun also has launched the RoadX RXQuest C11, RXQuest HT HX01 and RXMotion SUV UX01.

SAILUN TIRE AMERICAS www.sailuntireamericas.com

Schaeffler unveils belt tensioner

ATD revamps Hercules Raptis series American Tire Distributors Inc.’s (ATD) Hercules brand has announced the launch of its revamped Raptis series, featuring Raptis R-T6 and Raptis R-T6X. These ultra-high performance tires are for the all-season market and will replace the previous Raptis R-T5. Key features of the tires include a temperature control system; enlarged contact patch; 3D sipes; and more. The Raptis series is backed by the Hercules Performance Promise warranty, offering up to 60,000 miles of treadwear coverage.

AMERICAN TIRE DISTRIBUTORS INC. www.atd.com

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Schaeffler Group USA Inc. has expanded its range of front-end auxiliary drive components in the United States and Canadian markets by introducing a new belt tensioner under its INA brand product line.

Along with the addition of the FT0800, the company provides belt tensioner coverage for the latest Honda Accord, Civic and CR-V models and provides belt tensioner coverage for Honda L15BE, L15B7 and L15BY engines.

As a hydraulic dampened tensioner, the FT0800 can be used to lower pre-tension.

SCHAEFFLER GROUP USA INC. www.schaeffler.us

Ingersoll Rand releases hammer drill Ingersoll Rand Inc. has released the D5241 IQV20 Hammer Drill, a batterypowered, cordless tool with drill, driver and hammer drill modes. The brushless motor delivers 1,100 in-lbs. of torque. A 24-position clutch allows fine-tuned fastening depth, eliminating cam-outs and over-torqued fasteners, which results in better efficiency and saves on materials.

The D5241 IQV20 Hammer Drill is sold on its own or as part of a kit, with two fi ve-amp hour batteries.

INGERSOLL RAND INC. www.ingersollrand.com

MTD August 2023 8/8/23 12:25 PM

Products Bridgestone launches EV tire

Dana expands Spicer Select line

Bridgestone Americas Inc. has introduced the Bridgestone Turanza EV grand touring tire, its first-ever replacement tire designed specifically for premium electric vehicles and the first tire in North America to feature Bridgestone’s ENLITEN technology. The tire’s initial fi ve sizes include fi tments for Tesla Model 3, S, X and Y and the Ford Mustang Mach-E, with 13 additional sizes launching in early 2024. The tire comes with a 50,000-mile limited warranty.

BRIDGESTONE AMERICAS INC. www.bridgestoneamericas.com

Dana Inc. has expanded its Spicer Select line with the addition of end yokes, axle shafts and D/S170 and D/S190 primary gearing coverage. The Spicer Select RPL end yokes, slip yokes, weld yokes and yoke shafts are manufactured to help minimize noise and vibration and keep drivelines running smoothly. Spicer Select axle shafts are tested to meet stringent standards. Dana has also increased the number of Spicer Select primary gearing part numbers with Dana axle model D/S170 and D/S190 to meet the needs of its customers.

DANA INC. www.dana.com

Omni debuts Radar EV collection Omni United (S) Pte. Ltd has unveiled its new Radar Electric Vehicle (EV) collection, the Radar All-Season EV, with fi tments also available in the DIMAX and RPX lines. The new All-Season EV tire features a nextgeneration tread compound for high mileage and safety performance, combined with new structural components to help provide a balanced ride and low noise, according to Omni United officials. It also comes with a 40,000-mile tread warranty and is available in fi ve sizes, ranging from 15 inch- to 17 inch- wheel diameters.

OMNI UNITED (S) Pte Ltd. www.omni-united.com

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Goodyear introduces Cooper ProControl tire Goodyear Tire & Rubber Co. has introduced its new Cooper ProControl all-season tire. The product is available in 60 sizes and has been designed for sedans, coupes and small-to-large SUVs. Able to fi t wheels ranging from 16 inches to 22 inches in diameter, the Cooper ProControl features Goodyear’s Even Wear Arc Technology for balanced pressure in the tire-to-road contact area; water evacuation grooves; and more.

GOODYEAR TIRE & RUBBER CO. www.goodyear.com

ATEQ releases software update The latest version of software from ATEQ TPMS Tools LC includes new vehicle model coverage, updated OE sensor information and increased TPMS coverage for new aftermarket TPMS sensor brands. New vehicles added to coverage include the Acura Integra, Audi A6-S6, Audi A8-S8, Audi Q7, Audi SQ7, Audi SQ8, BMW 2 Series, BMW iX, Dodge Hornet GT, Genesis GV60, Karma GS-6, Mercedes-Benz EQB Class, Nissan Z and Subaru Solterra.

ATEQ TPMS TOOLS LC www.ateq-tpms.com

BendPak offers two double-wide lifts The new BendPak PL-12000DP and PL-12000DPS double-wide parking lifts store four vehicles in two parking spots. The lifts are patent-pending and operate independently from one another. One can be lowered while the other remains still and the structure provides double-car-width open front access. The PL-12000DP has a maximum rise of 82.2 inches, 183-inch runways and a drive-through height of 80.5 inches. The PL-12000DPS has a maximum rise of 70.2 inches, with 159-inch runways and a drive-through height of 68.5 inches.

BENDPAK INC. www.bendpak.com

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TPMS

Alfa Romeo Stelvio – 2023 DESCRIPTION & OPERATION

The Tire Pressure Monitoring System (TPMS) checks the pressure and temperature of the tires when the ignition is in ON or RUN positions and sends the information to the Radio Frequency Hub (RFH) via the Controller Area Network (CAN).

The TPMS activates a low pressure warning indicator on the instrument panel. TPMS functions are performed by the RFH and are transmitted at 433MHz. The RFH also performs the following functions: • Locking/unlocking doors using the signals of the remote control buttons; • Passive Entry via the signals from five antennas.

The system consists of four sensors, one installed on each road wheel that sends a Radio Frequency (RF) signal to the RFH, then to the Body Control Module (BCM) via CAN. Every time the ignition system is moved to the RUN position, the control unit conducts an initial check.

When the vehicle moves, the sensors measure the pressure and temperature and transmit the initial status within five seconds to check tire function. If an insufficient pressure value is detected on one or more tires, the warning light on the instrument panel switches ON, a dedicated message is shown on the display and an acoustic warning is emitted. The system also highlights the tire or tires with insufficient pressure graphically.

NOTE: This TPMS uses the frequency of 433MHz. The 315MHz and 433MHz sensors are identical in size and shape;

1 2

TIRE PRESSURE SENSOR REMOVAL AND INSTALLATION

1b

Removal

1. Remove the appropriate tire and wheel assembly.

2. Remove the valve core from the valve stem and def late the tire.

NOTE: The distance between the blade of the hydraulic arm and the sensor must always be greater than 80 mm.

3. Break the tire bead down with the TPMS sensor pointing at the 6 o’clock position and work from 1 o’clock to 5 o’clock.

4. Continue to remove the tire bead working clockwise around the wheel so that the sensor never enters the tool operating area.

5. Repeat the above steps on the inner side of the wheel.

6. Position the wheel on the tool chuck, taking care not to attach the wheel in the sector where the sensor is located.

NOTE: The distance between the blade of the hydraulic arm and the sensor must always be greater than 80 mm.

7. Lower the hydraulic arm to the edge of the wheel, ensuring that the sensor is at 180 degrees (6 o’clock position) in relation to the hydraulic arm.

8. Pry the tire out of the wheel with an appropriate lever.

9. Turn the wheel to pry the tire bead off the rimNOTE: The distance between the blade of the hydraulic arm and the sensor must remain greater than 80 mm.

10. Lift the tire from the wheel, lower the hydraulic arm on the inner edge with

TORQUE SPECIFICATIONS

Make sure the sensor is 180 degrees from the hydraulic arm for removal.

Photo: Mitchell 1

76 2308MTD_76-77_TPMS.indd 76

1b

they are not interchangeable. Always make sure the correct sensor is being used.

A RKE-TPM Analyzer can be used to determine the sensor’s frequency without having to demount the tire.

Description

(N.m) Ft.-lbs. In.-lbs.

Wheel mounting bolts

120

89

Tire Pressure Sensor Retainer Nut

8

_

_

71

2 1b

Make certain the valve is fully inserted and aligned with the wheel flange, shown correctly in the upper photo.

Photo: Mitchell 1

the sensor at 180 degrees (6 o’clock) in relation to the hydraulic arm.

11. Pry the tire out of the wheel with an appropriate lever, turning the wheel.

12. Remove the tire from the wheel.

NOTE: Always replace the mounting nut with a new one.

13. Remove and discard the sensor mounting nut securing the sensor to the wheel and remove it.

Installation

NOTE: In case of replacement of the pressure sensor, connect the scan tool to the vehicle, select “Radio Frequency Hub (RFH)” in the “Miscellaneous functions;” launch the procedure “Learning ID TPM sensors” and follow the instructions.

To verify the correct operation of the sensor, make sure the meter TPMS is updated to the latest release. The tool automatically updates by connecting to a PC with the TPMS Manager software.

When the valve is removed from the wheel, it is necessary to replace it with a new one in good condition because the MTD August 2023 8/8/23 12:25 PM

TPMS 1b

1a

Place the wheel on the tool chuck so the hydraulic arm is in contact with the wheel’s edge.

Photo: Mitchell 1

rubber seal may not fit perfectly in the valve opening later on.

Remember to verify the sensor is a 433 MHz TPMS sensor, and not the 315 MHz sensor, which is identical but not interchangeable.

1. Verify the sensor is intact and that the hole in the wheel is in good condition.

2. Check that the valve stem is fully inserted into the sensor housing.

3. Insert the valve stem into the hole of wheel and hand-tighten the sensor mounting nut.

4. Press the sensor from below with a vertical force so the sensor is inserted completely within the valve stem.

5. Hold the sensor making sure to have contact with the wheel at least one point (left or right).

NOTE: Excessive torque can damage the sensor, and insufficient torque can cause leakage.

6. Tighten the TPMS sensor mounting nut to the proper torque.

7. Check that the valve is inserted completely in place and aligned with the wheel flange.

8. Verify that the sensor is in contact with the wheel at least one point (left or right) NOTE: The initial sensor position must be at 6 o’clock in relation to the hydraulic arm, and the distance between the blade

of the hydraulic arm and the sensor must always be greater than 80 mm.

9. Position the wheel on the tool chuck so the hydraulic arm is in contact with the edge of the wheel as shown in the diagram.

10. Lubricate the entire wheel surface and the inner and outer tire bead area.

11. Position the inner edge of the tire on the wheel using the hydraulic arm.

12. Turn the chuck and press on the tire by hand until it is fully fitted.

13. Do the same to fit the outer edge.

14. Inflate the tire to the recommended pressure.

15. Tighten the valve core on the valve and remove the wheel from the tool.

16. Install the tire and wheel assembly. ■ 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..

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8/8/23 12:25 PM

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

AAPEX

73

www.aapexshow.com

ACDC

77

www.fixhybrid.com

Aftermarket Auto Parts Alliance

59

www.autocareadvocacy.org

American Omni Trading

33

www.vercellitire.com

American Omni Trading

49

www.american-omni.com/cropmax

Aston Technologies

43

www.astontechnologies.com

Atturo Tires

5

www.atturo.com

Autel

9

www.autel.com

BKT USA Inc.

11, 19-22

www.bkt-tires.com

Continental Tire

37

www.continentaltire.com/promotion

Firestone Tire

35

www.firestonetire.com

GT Radial

63

www.gtradial.com

Hunter Engineering Company

55

www.hunter.com/qcc

K&M Tire Inc.

69

www.kmtire.com/mrtire

K Tool International

65

www.ktoolinternational.com

Ken-Tool

45

www.kentool.com

Kenda Tires USA

IBC

www.kendatractionrewards.com

Linglong Americas Inc.

7

www.linglongtire.com

Maxxis Tires

25

www.maxxis.com

Mickey Thompson Tires & Wheels

41

www.mickeythompsontires.com

Mr. Tire/Big 3 Tire

47

www.mrtirebig3tirectd.com

Nitto Tire U.S.A. Inc.

OBC

www.nittoenthusiastcircuit.com/apply

Pirelli Tire

13

www.pirelli.com

Pre-Q Galgo Corporation

53

www.pre-q.com

Prinx Chengshan Tire North America Inc.

29

www.fortunetireusa.com

Radar Tires

61

www.radartires.com/premium

Sentury Tire USA

17

www.landsailtires.com

The Carlstar Group

57

www.carlstar.com

Tireco Inc.

27

www.milestartires.com

Transamerica Tire Company Ltd.

IFC

www.predatortires.com

Trimax Tire

67

www.trimaxtire.com

Western Tires Inc.

31

www.jk-usa.com

WheelerShip LLC

62

www.wheelership.com

Wrenchers LLC

71

www.wrenchers.com

Yokohama Off-Highway Tires America Inc.

15

www.yokohama-oht.com

Yokohama Tire

39

www.yokohamatire.com

ZC Rubber America Inc.

51

www.arisuntires.com

78 2308MTD_78-C4_AdIndex.indd 78

B

J P

L a

MTD August 2023 8/8/23 12:25 PM

2302MT

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8/8/23 12:25 PM 1/23/23 2:55 PM

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8/8/23 12:25 PM 3/22/23 1:27 PM