THE INDUSTRY’S LEADING PUBLICATION
g n i l l o r s t e e f g Keepin
7 / 4 2
vice r e s n o s u c o f s r Deale ile m r e p t s o c g in r and lowe
Truck tire market share winners and losers
The incredible shrinking parts inventory
June 2014 | Vol. 95, No. 6 | $10 | A Bobit Publication | www.moderntiredealer.com
Winter LT tires: Cold? Snow? Ice? No problem!
Reeling in tire sales: Setting the hook with value, not price
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Features 21 Te incredible shrinking parts inventory Retail dealers have more space to play with thanks to half-hour delivery, but that is not all they want from their distributors
28 Cold? Snow? Ice? No problem! Dedicated LT winter tires feature the mountain snowfake, too
Te Industry’s Leading Publication June 2014, Volume 95, Number 6
Departments 4 Editorial Status: single — Family-owned stores continue to lead the way
6 Online
News and navigation tools for MTD’s website
8 News/views
Commercial Tire Dealer™ 37 From cost-cuting to tier trends MTD outlines the truck tire market with the help of three commercial dealers
‘We just didn’t want the small guy to be knocked out of a market’: 17 independent tire stores band together to form United Tire & Service
18 Your marketplace Consumer demand should remain solid
52 Counter intelligence Reeling in tire sales: You set the hook with value, not price
54 European notebook Too many tires and not enough sales: Europe looks toward recovery from an uncertain period
55 Focus on industry
43 Truck tire market share Here are the frst-half winners and losers
44 What is not verifed? SmartWay may soon become the only way
46 Benchmarking tires An inside look at how feets manage their tires
49 Value, high value, optimal value TBC’s brand strategy keys on performance and price
50 Commercially viable
Modern Tire Dealer is a proud member of: TRIB
TIRE RETREAD & REPAIR INFORMATION BUREAU
New York, New York: For Pirelli, the place to launch its Cinturato P1 Plus was perfect
56 Focus on industry Wet traction versus tread wear: There is no compromise in the Cooper CS5 Touring tires
58 Focus on dealers ITDG celebrates 20 years of growth: ‘Band of Brothers’ continues on fast growth track
60 Focus on industry Update on wheel weights: Minnesota bans use of lead and mercury balance weights
62 Focus on dealers Growth through service: This dealer took advantage of opportunities and grew his retail business by becoming his own wholesaler
64 TPMS Determine the system on a BMW 3-Series E-90
76 Your turn Offer customer service from start to end
68 Products 70 Quik-Link 72 Classifed
Member An Industry Association
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Editorial
Status: single Family-owned stores continue to lead the way
T
he strength of the single-location, Originally, tire dealers stocked what they needed mom-and-pop store cannot be underat their own stores. Tey purchased their tires estimated, but it often is. Maybe it’s directly from the manufacturer in many cases. because growth and consolidation among the Size proliferation helped change that. Tere national and regional chains gives everyone the were too many sizes and SKUs to inventory. impression that as the big get bigger, the small When tire manufacturers stopped direct delivery get smaller. to the smaller dealers, the wholesale distribution Tat is not the case with single-store owners channel grew quickly and dramatically. in our industry. Based on Modern Tire Dealer’s Te Rubber Manufacturers Association (RMA) circulation list, there are 30,000 independent By Bob Ulrich has tracked that trend for years from the perspectire dealer locations in the United States. Of tive of its members. In its annual “Passenger Tire that total, 60% are single-store owners. And it has been Shipments by Channel Type” chart, the RMA breaks down that way for a long time. channels as follows: general merchandise (such as Walmart On the surface, you might think that sounds impos- and Sears Auto Centers), company outlet, national dealer, sible. We’ve all read about how Walmart supposedly has regional dealer, local dealer and “other.” destroyed Main Street U.S.A. because small stores can’t Te national, regional and local tire dealers are classifed compete with the pricing. as independent. Here’s how the RMA defnes each. I’m not exactly sure why that is the case. Walmart can’t match the specifc inventory any specialty store has, unless National: tire dealers with more than 40 outlets spread there is such a thing as an inexpensive watch store. Yes, over at least three of the nine census divisions (New general stores are no more thanks to Walmart, but that’s England, Middle Atlantic, South Atlantic, East North only because Walmart is a big general store. Central, East South Central, West North Central, West Unless the diference in price is outrageous on either South Central, Mountain and Pacifc). Exceptions include end, book stores, toy stores, grocery stores, etc., should “National Internet Sale” companies such as Tire Rack, or all be able to hold their own against Walmart. tire wholesalers with fewer than 10 wholesale outlets but If I were to hazard a guess, I would say Walmart’s one-stop serving at least three census divisions. Regional: tire dealers with more than 10 outlets spread over at least two census divisions, or 20 or more outlets within one census division. Local: tire dealers with 10 or fewer outlets, or in which all outlets are confned within a single census division.
In 2004, local dealers accounted for 45% of the factory-direct shipments.
shopping concept must be the reason many consumers don’t frequent specialty stores as much as they used to. Tat brings us back to single-store tire dealers, who probably know their customers as well as anyone. Maybe beter. In their local markets, they are neither gone nor forgoten. Far from it. Despite the proliferation in tire sizes (more on that in a minute), they continue to generate repeat business through personal service. And unlike book stores, they don’t have a competitor like Amazon with the potential to take away all their business. Car owners can’t have their tires mounted and balanced online. Or their vehicles fxed online. So small, family-owned businesses remain the lifeblood of our industry. What has changed is how they get their tires.
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By studying the charts over the last 10 years, you can pinpoint when tire manufacturers began a concerted efort to focus less on distributing to the local dealers and more on leting large wholesale distributors do it for them. In 2004, local dealers accounted for 45% of the factorydirect shipments. Tat dropped to 29% in 2007, as tire manufacturers realized the beneft of eliminating distribution to the smaller and/or out-of-the-way dealerships. It was simply too expensive to ship tires to Cullman, Ala., or Devil’s Lake, N.D.Te percentage dropped in each of the next fve years. As of 2013, local dealers represented only 18% of the direct shipments. Not surprisingly, regional and national independent tire dealers have, in turn, steadily increased their share of direct shipments. Tose trends will continue. But they won’t undermine the importance or survival of the single-store owner. ■
If you have any questions or comments, please email me at bob.ulrich@bobit.com.
MTD June 2014
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MODERN TIRE DEALER
Publisher Greg Smith Greg.Smith@bobit.com (330) 899-2200 ext. 12, fax (330) 899-2209
TOP TEN
Editorial (330) 899-2200, fax (330) 899-2209 Editor: Robert J. Ulrich, ext. 11 Bob.Ulrich@bobit.com Managing Editor: Lori L. Mavrigian, ext. 16 Lori.Mavrigian@bobit.com Senior Editor: Bob Bissler, ext. 15 Bob.Bissler@bobit.com Associate Editor: Ann Neal, ext. 18 Ann.Neal@bobit.com
ATD items lead the news, and dealers follow them
American Tire Distributors (ATD) was in the news last month, and www.moderntiredealer.com readers were interested in company updates. Not only did we cover ATD’s fnancial report, Editor Bob Ulrich wrote about the effect the company’s moves had on tire dealers and tire suppliers. Also receiving a lot of hits were our news items on television news programs’ interest in tire aging.
NAVIGATE Check out the digital version of this issue of Modern Tire Dealer on the homepage of www.moderntiredealer.com. Click on View Digital Edition at the top of the page, or scroll down toward the bottom to fnd our Digital Edition. We’re making our digital editions more interactive to enhance your reading experience!
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MOST-READ NEWS ITEMS: 1. ATD’s reputation: Bad karma or bad rap? 2. ABC is running with its tire aging report 3. As ATD gets bigger, the haters grow in number 4. Big Brother is investigating tire aging and voluntary tire registration 5. Dealers unite to better compete 6. ATD posts loss despite a 28% sales increase 7. Michelin has ambitious objectives, says Senard 8. Cooper has a new premium touring tire 9. Yokohama does more than denounce racist comments attributed to Donald Sterling 10. Trelleborg will build an ag tire plant in S.C.
Check out what your tire suppliers are doing in motorsports with our exclusive Racing News. Click on the News channel in www.moderntiredealer.com and scroll down to Racing News. See who’s taken the podium over the weekends!
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MODERN TIRE DEALER (ISSN 00268496) (CDN IPM #40013413) (USPS #369-170) is published monthly by Bobit Business Media, 3520 Challenger St., Torrance, California 90503-1640. Periodicals postage paid at Torrance, CA 90503-9998 and additional mailing offces. POSTMASTER: Send address changes to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks for address changes to take effect. Subscriptions in the U.S. and its possessions, $65; Canadian, $99; Int’l surface mail, $99; Int’l airmail, $198. Single copies, $10, except the January Facts Issue, $30. Address all subscription correspondence to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks to receive your frst issue. Please address Editorial and Advertising correspondence to MODERN TIRE DEALER, 3515 Massillon Road, Suite 350, Uniontown, OH 44685-6217. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. For your information: We sometimes make our subscriber information (i.e. fax, e-mail or mailing address) available to carefully screened organizations whose products and services may be of interest to you. If you prefer not to have your information made available, please write MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068.
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MTD June 2014
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News/views
‘We just didn’t want the small guy to be knocked out of a market’ 17 independent tire stores band together to form United Tire & Service The name United Tire & Service LLC refects the mis- Moe & Jack were another factor. “They come into sion of 17 independent tire stores in Pennsylvania’s a marketplace and can do a category kill. They can Delaware Valley: unite to compete against big box take all the proft margin out of a tire. It’s hard to be retailers and national tire dealers. “We are individual a tire dealer at that point. So we had to fnd a way to businessmen who have gotten together to buy betcombat that. We just didn’t want the small guy to be ter,” says Ken Sylvester, president. knocked out of a market,” says Sylvester. By joining forces, 14 dealers who operate 17 About a year ago the nine dealers decided to independent shops are able to offer competitive open their group to new dealers and to rebrand pricing on all major brands while still providing themselves. Fourteen dealers were part of the group personal, high-quality service to their customers in when United Tire & Service launched its new brand the Philadelphia metropolitan area. “We are now on April 29, but not all are partners in every locaable to compete and win with every major national tire center chain without compromising our mission to not only meet our customers’ expectations but to exceed them,” says Sylvester. He has been in the tire industry for 30 years, as a technician, Goodyear dealer and now owner of Downingtown Tire & Service Inc., a 10-bay shop. Most of the dealers have known each other for many years. Up to eight years ago, nine of them were part of a partnership which operated nine stores. United Tire & Service partners (from left) Andy Chafolsky, Jeff Cohen, Ken Sylvester and Tim Steigerwalt launched their company’s brand on April 29. As a collective group, When the owner retired, United Tire & Service will be ranked as the largest independent tire group in the region each dealer bought his and the second largest tire group in their market area, preceded only by Pep Boys-Manown store. At frst the indi- ny, Moe and Jack. There are currently 14 dealers in the group with 17 shops. vidual dealers shared action. “That’s where the United Tire umbrella comes counting services. As the dealers eventually bought more stores, their separate identities and increasing in,” says Sylvester. “We’ve all joined under this umbrella to work together as one entity.” competitive pressures were hindering growth. Sylvester says shop owners can become United “As we grew and got up to 16 stores we realized Tire authorized dealers, rebrand their stores and buy it was impossible for us to advertise, it was impossible to buy as a group, it was hard to grow anymore. tires through the program. Or they can join completely and take advantage of shared services such We had gotten as big as we could in that type of as accounting, credit card processing and training. entity. We decided we needed to become one as far The company’s retail website, www.unitedtire.com, as at least the identity,” says Sylvester. went live on April 30. In addition to showing product Acquisitions of small stores by bigger chains such and service information, the website provides price as Monro Muffer Brake Inc. and Pep Boys-Manny,
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MTD June 2014
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Rice Tire expands Rice Tire Co. has opened its sixth store in Maryland. The eightbay store in Gaithersburg was purchased from Montgomery Tire Service Inc. The company has 10 stores in Virginia, Maryland and Washington, D.C. Dealers fund scholarships The Louisiana Independent Tire Dealers Association (LITDA) has created the “Dollars for Scholars” fund raiser. Each year on a given Saturday, participating locations will donate $1 for every tire sold to the LITDA scholarship fund. STS sponsors contest Somerset Tire Service Inc. is sponsoring “The Great American Road Trip” contest to raise awareness of vehicle and tire maintenance. New leader at Nokian Tyres The board of directors of Nokian Tyres plc has named Ari Lehtoranta CEO and president, effective Oct. 1, 2014. Current CEO and President Kim Gran will retire Sept. 30 and remain on the Nokian board. Phoenix updates website Phoenix Systems LLC has launched a major update to its website, www.brakebleeder.com, to give customers better access to the company’s brake bleeding and testing products and information. Bridgestone adds training Bridgestone Commercial Solutions has added e-learning, mobile learning, performance-based, instructor-based and mentoring options to its dealer training. TGI will supply Wabash Tire Group International LLC (TGI) has signed a tire supply agreement with Wabash National Corp., a diversified manufacturer. TGI carries more than 40 tire brands. Hornsby Tire expands Hornsby Tire Distributors Inc. has added a wholesale distribution center in Columbus, Ga. The Dothan, Ala.-based company also has D/Cs in Dothan, Birmingham and Huntsville, Ala.
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quotes by email. Offering shoppers the ability to request a price by email helps to validate their buying interest, according to Sylvester. He says dealers “went back and forth” on whether to display prices online. “A lot of people use prices on the Internet to go to where they normally do business and try to get them to lower their prices. We’re going to try this, and if it doesn’t work we’ll put the prices there. I’ve talked to a lot of people in the industry, and half believe you should put pricing on the Web and half don’t.” A Web portal for dealers will launch in June. It will show tire suppliers at frst, with parts suppliers to be added later. “We’re trying to create it so Nine partners evolved to become a they don’t have to shop around group of 14 dealers who united to for the best price. They just establish bulk buying power, shared need to spend time selling business services and a single brand tires,” says Sylvester. identity. Ken Sylvester is president of The program includes the the group, United Tire & Service LLC. He Pirelli, Goodyear, Continental and Tim Steigerwalt run the retail side of the company while Jeff Cohen and and Nexen brands with more Andy Chafolsky are responsible for the manufacturer agreements wholesale operation. The members and expected soon. Sylvester has their store locations, all in the Delaware talked to at least six indepenValley of Pennsylvania, are: dent dealers with multiple Harry Bickel — Downingtown; locations who have expressed Bob Cox — Ambler; interest in joining the group. Andy Chafolsky — Quakertown; The group also is looking for Alex Curtis — Phoenixville; people to partner in opening Bill Damico — West Chester; new locations. Al Dumas — Wilmington; “In a year I would see ourPete Getz — Concordville; selves to be at least double Steve Harvilla — Rosemont; where we are today in terms Eric Russo — Philadelphia; of membership and revenue,” Lenny Salvato — Paoli; Ken Sylvester — Ardmore, says Sylvester. “I built the busiDowningtown, Feasterville; ness plan based on becoming Tim Shook — Havertown; 50 or 60 stores, but I think the Tim Steigerwalt — Southampton, sky’s the limit.” Willow Grove; and United Tire & Service celPete Weidner — Colmar. ebrated its 17-store launch on April 29 with a grand opening at the store in Ardmore. The company donated $5,000 and a percentage of proceeds from opening day sales to Mothers Against Drunk Driving in the name of Ian Mann, a technician from the Downingtown location killed by a drunk driver. “We hope this real life David and Goliath story inspires other small business owners to hold their own against industry conglomerates,” says Sylvester. Send an email to staff@unitedtire.com or visit www.unitedtire.com for more information. — Ann Neal
Dealers stand united
MTD June 2014
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Federal-Mogul renames division Federal-Mogul Holdings Corp. has renamed the company’s aftermarket parts division FederalMogul Motorparts. TCG adds to team Tire Consultants Group LLC (TCG), a consultancy that specializes in retail tire branding, marketing and retail dealer segmentation programs, has added veteran tire industry executives David Conley, Dennis Kruppa, Jack Kim and Tom Adams to its team. Fontana joins SURE Tire Patrick McLaughlin, longtime president of SURE Tire Co., has announced he will retire. Lou Fontana, a 20-year veteran of Hercules Tire & Rubber Co., will take over for McLaughlin. TV star in Bridgestone ads Bridgestone Americas Inc. is featuring Emmy-award winning actress and “Modern Family” star Julie Bowen in ads aimed at women, mothers and safety-minded drivers for its run-flat DriveGuard tire line. Delphi offers ABS training Delphi Product & Service Solutions has added a four-hour instructorled course on service and repair of anti-lock brakes, stability control and traction control systems.
$500 million Goodyear consumer tire plant is coming to the Americas Goodyear Tire & Rubber Co. announced plans to invest approximately $500 million to build a new consumer tire plant to support demand in North America and Latin America. The company says the new tire plant will support long-term growth in high-value-added consumer replacement and original equipment market segments. Goodyear says the plant will be its most technologically advanced and will have an initial capacity of about six million tires per year. Capacity can be increased as demand increases. Goodyear has not selected a site for the plant, but says it will be located in the Americas to support North America and Latin America customers. Tire production is expected to begin in the frst half of 2017. “Our investment supports another key element of our strategy to focus on winning with consumers in proftable market segments,” says Richard Kramer, chairman and chief executive offcer. “With growing consumer demand for our high-value-added tires in North America and Latin America, the time is right to invest in additional manufacturing capacity in the Americas to maintain Goodyear’s leading position and to grow earnings beyond 2016. Goodyear is well-positioned to meet this market demand and has a proven track record of producing strong returns on capital investments.” The company expects a 2% to 3% increase in unit volumes for 2014 over 2013. The new plant is one of several corporate moves announced as part of an update to the company’s 2014-2016 capital allocation plan. In addition to allocating an additional $300 million for a new plant, the company plans to increase its quarterly cash dividend on Goodyear’s common stock by 20%, increase its share repurchase program by $350 million in order to acquire up to $450 million of company stock through 2016; increase the shareholder return program by up to an additional $250 million based on company performance; and put an additional $400 million toward debt reduction.
Trelleborg to build plant Trelleborg AB will build a $50 million agricultural tire plant in Spartanburg, S.C. It will supply OE and replacement markets in North America. Production is expected to begin by the end of 2015. Bosch mentors youth Bosch’s Automotive Aftermarket Business Division is a Diamond level sponsor of the Ford/AAA Student Auto Skills competition, which helps mentor youth interested in the automotive service industry. Reinalt-Thomas adds stores The Reinalt-Thomas Corp. doing business as Discount Tire/America’s Tire has opened a Discount Tire store in Tulsa, Okla., and an America’s Tire store in Visalia, Calif.
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An employee inspects a high-performance tire at the Goodyear plant in Lawton, Okla. Goodyear announced plans to build a $500 million plant to serve its North American and Latin American consumer tire businesses and capitalize on the anticipated growth in high-value-added tire market segments in the two regions.
MTD June 2014
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Horizon Tire hires Fabrizio Horizon Tire Corp. has named industry veteran Edward Fabrizio vice president of sales-southeast/ central division. Fabrizio is based out of Horizon’s Atlanta and Houston locations. ASA updates TireMaster ASA Automotive Systems has released the latest versions of its TireMaster 8.8.0 and TireMaster POS 3.8.8 software. Carfax service history reports are among the improvements. Falken offers consumer rebate Falken Tire Corp.’s “Summer Break” consumer rebate program runs June 1-July 31, 2014. The promotion features the Sincera SN211 touring tire and the WildPeak H/T light truck and SUV tires. NYTDA plans golf outing The New York Tire Dealers Association will host its 21st annual NYTDA Golf Classic on Thursday, Aug. 14, 2014, at the Stonebridge Country Club in Smithtown, N.Y. For further information, contact the association by email at info@nytiredealers.com or by telephone at (631) 789-9505. Titan has LSW website Titan Tire Corp., a subsidiary of Titan International Inc., has launched a new website, ww.LSWadvantage.com, for equipment owners to learn about Low Sidewall (LSW) technology tires and wheels for agriculture, construction and mining equipment. Epicor to hire vets Epicor Software Corp. plans to hire more than 100 U.S. military veterans, “wounded warriors” and active duty personnel transitioning to the civilian workforce over the next 12 months as part of the company’s Hiring Heroes Program. Tenneco visits tech schools Tenneco Inc. has added visits to technical schools to its Monroe Ride & Drive seminars and Walker Emissions Control Diagnostics workshops. For more information, call (800) 304-8878.
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Majewski opens a RingTread plant in Tennessee Bob Majewski, coowner of Sumerel Tire Service in Newport, Ky., has added a Marangoni Tread North America Inc. retread facility in Lebanon, Tenn. The new plant, Wilson County Tire & Retreading, will supply Bob Majewski has opened the Wilson County Tire & Retreading plant, which is part of the Marangoni retread customers in Tread North America dealer network. middle Tennessee and the Nashville market with RingTread products. The plant offers feets new tires and retreading as well as a mounted wheel program, drive-up service, and pick-ups and deliveries. “We are pleased and excited to venture into the middle Tennessee market with Marangoni products,” says Majewski. The retread operation will be run by Rick Majewski. Sumerel Tire Service is No. 63 on MTD’s 2014 “Top 100 Retreaders” list.
Cooper outlines how it will grow sales Cooper Tire & Rubber Co. delivered a solid framework for generating sales at its 2014 Investor Day on May 15, according to industry analyst Nick Mitchell. “The company’s frst formal meeting since the termination of the merger agreement with Apollo Tyres was well attended and included a thorough update of its strategic plan and benchmark goals that were originally introduced at the last analyst day in 2008,” says Mitchell, senior vice president of research for Northcoast Research Partners LLC. “In fact, management provided investors with the framework it expects to follow to generate sales in the range of $5 billion to $6 billion by the end of the decade, while consistently delivering operating margin performance in the range of 8% to 10% along the way.” The main drivers of the projected increase in both sales and operating margins include: • recovering the volume lost in 2013; • expanding output capacity via a series of cost effcient capital projects; • enhancing sourcing capabilities; • improving manufacturing effciencies, which includes making automation investments in the U.S. plants; • reducing the exposure to the private label wholesale channel; • targeting fast growing and/or highly proftable segments of the global tire market, which includes increasing the penetration in the premium segments in the U.S.; and • leveraging low-cost capacity in Mexico and Serbia to expand distribution capabilities into new markets in Eastern Europe and Latin America. Mitchell says he left the presentation feeling more confdent in Cooper’s leadership. He believes the leadership team is “working aggressively to get the company back on track following a challenging 2013.”
MTD June 2014
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dates
June 18 Ontario Tire Dealers Association Annual Fund Raiser & Charity Golf Classic, Port Hope, Ontario (888) 207-9059 www.otda.com July 16-18 PAACE Automechanika Mexico, Mexico City, Mexico (770) 984-8016 www.messefrankfurt.com July 18 Georgia Tire Dealers & Retreaders Association Annual Convention, Sandestin Golf and Beach Resort, Miramar Beach, Fla. (770) 947-2323 www.gtdra.com July 23-25 Latin American & Caribbean Tyre Expo, ATLAPA Convention Center, Panama City, Republic of Panama +1 786-293-5186 www.latintyreexpo.com September 7-10 Automotive Fleet & Leasing Association Annual Conference, M Resort, Las Vegas, Nev. (414) 386-0366 www.afaonline.com September 10-12 12th China International Tire Expo, Shanghai Everbright Convention & Exhibition Center, Shanghai, China +86-10-85898181 www.citexpo.com.cn September 16-20 Automechanika Frankfurt, Frankfurt am Main, Frankfurt, Germany +49 69 75 75-0 www.automechanikafrankfurt.com September 18-20 Tire Dealers Association of Canada National Trade Show & Conference, Scotiabank Convention Centre, Niagara Falls, Ontario (888) 207-9059 www.otda.com
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Continental develops a TPMS sensor that reads tread depth thickness Continental AG announced it is developing tire pressure monitoring system (TPMS) sensors that will detect when a tire change is necessary due to insuffcient tread depth. The company says intelligent software in the sensor deduces tread depth from gradual changes in tire rolling characteristics. The in-tire pressure sensor infers running characteristics from the variations in tire deformation. The feature is tentatively slated for 2017 in new models equipped with direct TPMS from Continental’s electronic Tire Information System. The vehicle’s telematics module is capable of informing the local If a tire’s tread is run down to below a tire-specifc auto service center a tire threshold value, Continental’s new sensor signals that a tire change is due. change is due.
ATD owners consider a public offering If TPG Capital LP decides to take American Tire Distributors Holdings Inc. public, it might recoup its initial investment and more. Recent acquisitions, however, will make an initial public offering (IPO) less proftable. The private equity frm purchased the company in June 2010 for $1.3 billion. Add in the cost of ATD’s two most recent acquisitions — $310 million for Hercules Tire Holdings LLC and $345 million for Terry’s Tire Town Holdings Inc. — and TPG’s investment jumps to nearly $2 billion. TPG has been exploring a possible IPO for ATD, the largest wholesale tire distributor in the U.S. ATD posted a net loss of $6.3 million on net sales of $3.8 billion for its fscal year ended Dec. 28, 2013.
Bauer Built celebrates 70 years After 70 years in business, Bauer Built Inc. is not slowing down. As part of its anniversary celebration, the Durand, Wis.-based commercial tire dealership announced two 70th Anniversary Sweepstakes programs for its associates. One is in appreciation for their dedication and loyalty and is related to their years of service to the company. The other is an incentive for salespeople to increase sales in 2014. “Our company slogan is ‘Our Strength is in our People,’ and this is our way of telling them we mean that and how much we appreciate their efforts, past and present,” says President Tad Bauer. Bauer Built also honored its founders by announcing the six winners of the 20th G.F. “Sam” and Ethel V. Bauer/Bauer Built Inc. Scholarship Award Program. Since 1994, the program has awarded close to $85,000 in scholarships to a Bauer Built employee, or a son, daughter, stepson, stepdaughter or grandchild of an employee. The company ranks ninth on MTD’s “Top 25 U.S. Commercial Tire Dealers” list. ■
MTD June 2014
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Your marketplace
Consumer demand should remain solid in the coming months
A
ccording to the results of our survey, replacement season. Trends remained strong demand for replacement tires remained in the truck category as dealers reported that strong in April. Indeed, from a volume volumes increased 8.0% afer increasing 2.8% standpoint, the dealers reported that they sold in March. Meanwhile, volumes rose 9.3% in the 1.3% more tires in April on a year-over-year basis, retread business afer increasing 4.5% in March. following a 0.1% increase in March and a 0.6% increase in February. We were pleased to see that Retail prices were mixed in April volume trends remained strong at the beginning Te tire dealers in our survey noted that manuof the spring season, as dealers indicated that facturer pricing was more aggressive in April consumers replaced tires that were damaged By Nick Mitchell than it was in March. Specifcally, the percent of by potholes and opted to prepare their vehicles respondents who characterized manufacturer for summertime travel. In fact, it appears that sales trends pricing as aggressive increased from 58% in March to 73% remained strong across most of the country. In our view, the in April. Te more aggressive pricing stance was evident in data supports our belief that the underlying fundamentals the efective pricing dealers saw from value manufacturers, remain healthy and that consumer demand should remain as they noted that prices fell slightly more than 2% in the solid in the coming months. period. However, the prices on branded tires were not explicitly representative of the aggressive pricing indicated Monthly survey by dealers, as our survey respondents noted that their costs A number of independent tire dealers were surveyed only fell 0.2% in the period. Tat said, it is worth noting concerning current business trends. Except for tire prices that the sequential declines are moderating. Specifcally, and costs, results of the April 2014 survey are compared the average decline in premium tire prices has been 0.4% with those of April 2013. since November 2013, which compares to an average decline of 1.5% through the frst 10 months of 2013. Tis trend is also present in the value arena. Namely, we have seen price declines slow to 1.5% from 2.6%. Looking at prices from the eyes of the consumer, we would note that premium brands Dealers DEC JAN FEB MAR(R) APR(P) APR(13) were fat in April while value brands were down 1.7%. Passenger tire
How dealers view near-term business
Will improve Will worsen Will stay level
33% 11% 56%
38% 0% 62%
57% 14% 29%
42% 0% 58%
64% 0% 36%
36% 0% 64%
Truck tire Will improve Will worsen Will stay level
51% 13% 36%
51% 0% 49%
59% 0% 41%
62% 0% 38%
75% 0% 25%
30% 10% 60%
R-Revised
P-Preliminary
Dealers think the good times will keep rolling Sixty-four percent of passenger tire dealers believe business will improve over the next six months, while the rest believe it will remain the same. Meanwhile, 75% of the truck tire dealers we surveyed see business improving, while the balance see business trends staying about the same.
Replacement tire volume trends remained strong Consumer demand for replacement tires remained strong in April. Indeed, the dealers in our survey reported that they sold 1.3% more tires last month on a year-over-year basis, following the 0.1% increase reported in March and a 0.6% increase in February. We were pleased to see a sequential acceleration in volumes in April as we believe that the pent-up demand should lead to a solid spring
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Inventories for truck tire dealers looked ideal Approximately 24% of surveyed passenger tire dealers indicated that they had the appropriate amount of inventory in stock for demand (vs. 50% in March), while the remainder were split evenly with about 38% indicating that inventory levels were too high and approximately 38% indicating levels were too low. Te inventory levels among truck tire dealers looked to be ideal as 100% of the truck tire dealers we surveyed indicated that their inventory was optimal (vs. approximately 66% in March).
Spring repair season is of to a great start As expected, consumers fooded service bays during April to repair the damage caused by the harsh winter weather and prepare their vehicles for summertime travel. The dealers we spoke with indicated that sales in the service category, which accounted for almost 23% of the study participants’ total revenues, were up roughly 5% on a year-over-year basis in April following a relatively fat performance in March. â–
Nick Mitchell is a research analyst with Northcoast Research Holdings LLC based in Cleveland, Ohio. Mitchell covers a variety of subsectors of the automotive industry.
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feature
Te incredible shrinking parts inventory Retail dealers have more space to play with thanks to half-hour delivery, but that is not all they want from their distributors By Bob Bissler
W
hen it comes to stocking auto parts for service and repairs, tire dealers have a lot of options. Do you use one main supplier or multiple sources? What atributes should you look for in a supplier? Timely delivery is critical. So are price, volume discounts and credit terms. We talked to three tire dealerships in the Northeast Ohio area to fnd out how they handle parts-buying. Conrad’s Tire Service Inc. has 34 locations in the Cleveland-Akron area. Parrish-McIntyre Tire Co. runs two retail stores in the Akron area, while Tire Source has fve locations in the Akron-Canton area. All 41 stores are located approximately in a 60-mile radius. Parrish-McIntyre and Tire Source use computers that are tied-in with their primary parts suppliers to order their auto parts. Tey say fast delivery is the top priority. At Conrad’s, the company has become its own distributor; it stocks its 7,000 square-foot warehouse operation through a major distribution group’s program and sells internally to the 34 retail stores. Each dealership’s retail store has its own parts inventory. We asked their managers how they stock their parts, how auto parts distribution has changed over the years, and where it is headed. MTD: What parts do you stock in your retail stores? Pat Stuhldreher, district manager, Tire Source: We use a national program distribution group as our preferred supplier and they handle all of our stocking levels. Most of our deliveries get here in 30 to 45 minutes. Since there are so many diferent part numbers today, we have reduced our inventory to flters, bulbs, some belts and bateries. We’ve signifcantly reduced our parts inventory in the last fve to 10 years. Mike Spitale, manager, Parrish-McIntyre Tire’s east Akron location: All we stock is air flters, oil flters, small bulbs and belts. Everything else we buy on an as-needed basis. When we used to have more commercial accounts, they had feets with the same cars and we used to stock brake parts and other parts for those specifc model-year cars. Now we don’t stock as much because it’s just too difcult to keep an inventory here when in 15 minutes I can have anything I want. Dan Cochran, a sales manager at Conrad’s Tire Service, Cleveland: Each one of our retail stores carries an inventory so that they can pull as much as they can of of their own shelves for their immediate needs. Te retail stores inventory brake pads, brake rotors, chassis parts, belts, flters (oil, air and
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Ten years ago, the parts room at the Tire Source’s west Akron location was flled with hard parts; today, inventory consists of flters, bulbs, belts and batteries.
cabin), and a wide array of chemicals and wiper blades. Tose are supplied to our stores from our warehouse.
MTD: How much do you stock? Stuhldreher, Tire Source: Dollar value, I’d say $7,000 to $10,000 per location. Tat amount has been prety steady over the last couple of years, but it will be shrinking in upcoming years. Five to 10 years ago, we carried anywhere from $15,000 to $20,000 in parts inventory per location. Over the years it has been going down. We used to stock multiple part lines, suspensions, alternators, those kind of parts. Spitale, Parrish-McIntyre: Everybody in this industry has cut their inventories back on everything. Parts suppliers are trying to get from their door to yours in 20 minutes or less to make it convenient. Tey have main warehouses and small litle satellite stores around that help take care of us. As far as parts are concerned, everybody’s back room inventory has shrunk. Cochran, Conrad’s: Te amount we stock in our retail stores is sales-based. Tere’s a constant fow of items that come on their shelves, and if they buy a part from the warehouse or from a local jobber associated with our program group vendor enough times to generate an order point, they’ll have
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Parts inventories
Conrad’s Tire Service stocks its parts warehouse through a major distribution group’s program and sells internally to its North Olmsted location and 33 other retail stores.
it on their shelf the next time. On the other hand, if there’s something on their shelf that hasn’t sold in a year, it leaves. Oils and lubrication fuids are on a bulk program that we get through a supplier, all electronically monitored. MTD: Where do you buy auto parts? Stuhldreher, Tire Source: Te majority of our stuf does come from our primary program group vendor, but we will outsource if they do not have what we need or cannot get it to us in the amount of time we need it. When a part is not available through the afermarket or a technician recommends we get it from the dealer, we will use dealerships. Tose parts are mostly upper-end import parts. We seem to buy a lot of Audi and BMW parts from the dealer. Spitale, Parrish-McIntyre: Our main supplier is a national program group, but we buy from seven diferent suppliers. It’s mainly wholesale jobbers; we don’t buy from national retail chains. We do buy parts from car dealerships that are not available on the outside like certain interior components and window regulators that are just specifc to the dealer. MTD: How many suppliers do you regularly use? Stuhldreher, Tire Source: On a monthly basis, we have between 25 and 50 suppliers that we regularly use. Spitale, Parrish-McIntyre: We have six direct suppliers we use on a regular basis. MTD: What atributes do you look for in a supplier? Stuhldreher, Tire Source: Delivery, price and brand are
Parrish-McIntyre Tire’s east Akron location used to stock brake components and other parts for its commercial accounts; now parts are purchased on an as-needed basis.
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MTD June 2014
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Parts inventories
The parts room at Parrish-McIntyre’s east Akron location is stocked with air and oil flters, small bulbs and belts. Five to 10 years ago, it was flled with hard parts.
all very important. We also like to be partners with our suppliers. We want suppliers that do not sell to the retail public. Knowledgeable counter people are a must, even though with the age of the Internet, that has gone away some. We can go online, click on a part, see what it looks like and order it all at the same time. Ten we’ve got it in a half hour. We also look at warranty and return policies. In today’s market, most national program groups all have pretty much the same return policy. If you’re a good customer, they’re going to take care of you. Tat’s being a partner in the business. Spitale, Parrish-McIntyre: We look at quality but not price. Te brand makes a diference in some instances. Return policies have something to do with it; you want somebody who’s going to work with you when you need help. Cochran, Conrad’s: Because of our size and the way that we’re able to purchase through the one vendor, our costs are very competitive with the marketplace.
Te main reason we chose our vendor was consistency of product. Our vendor is probably not known as being a price leader in the marketplace, but they consistently provide a high-quality, high-value product. MTD: How has your parts-buying changed over the years? Stuhldreher, Tire Source: We’re buying fewer parts. What we’ve seen as far as parts buying goes is the normal things that used to break down on vehicles really don’t anymore. Te longevity of parts on newer cars has increased signifcantly. We’re not buying the same kind of parts. More of our purchasing has gone toward the brakes, front end, suspension and carrying the more wearable items. Spitale, Parrish-McIntyre: It’s a totally diferent marketplace today. Ten years ago, a Chevy Impala fve years old and a brand-new Impala would carry the same brake part number. Now, every other year they get a diferent part number, so it’s literally impossible to keep every number
The Tire Source’s west Akron store stocks $7,000 to $10,000 worth of inventory in its parts room; fve to 10 years ago, it was between $15,000 and $20,000 in parts inventory that included multiple part lines, suspensions and alternators.
24
MTD June 2014
Quik-Link: 800-687-1557 ext. 17112
Part inventories we used to support are prety much gone. Tere’s only one of those lef that we deal with. Everybody else is a national chain.
on the shelf. Whatever comes in the door we work on it, and you can’t keep all the parts on the shelf for all those cars. Cochran, Conrad’s: One thing that has changed is the infux of imported product. A lot of it comes from China. Tere’s been a large infux of parts retailers that use a lot of that product. It’s forced the emergence of value lines, so instead of carrying one line of chassis parts that is a premium line of ball joints and tie rods that you know are real good quality, you also have to carry a value line. You’ve got to be there at the price point because the consumer expects that. Tey’re sometimes trying to work within a budget on a needed repair, and it’s hard to get there without using a lower-cost part.
MTD: Where do you see your parts buying headed? Stuhldreher, Tire Source: I see it mostly going to online. At our stores we are directly connected to our main vendor’s inventory, so I can see what they have here locally in Akron, and I can also see what they have in their massive warehouse up in the Cleveland area for quantities on just about anything. Newer cars are lasting longer, so we’re not sourcing some of the older parts that we used to. Spitale, Parrish-McIntyre: It’s going to progress to the point where the bigger guys are going to keep buying up the MTD: What trends do you see in Tire Manager Mark Butcher checks a smaller guys, so at some point there will parts delivery, one of three daily, at parts buying? just be three diferent names involved Stuhldreher, Tire Source: I have seen Conrad’s North Olmsted location. and that’s who you’ll have to deal with. national retailers coming to town, that’s Cochran, Conrad’s: As long as the new for us and we don’t really do business with them as of yet. economics are favorable to us having our own internal disIt’s a possibility that we’ll work with them, but it would be the tribution and our own internal parts source that can fund third or fourth choice before we’d source a part from them. our distribution system, we’ll continue to do that. At such Spitale, Parrish-McIntyre: Tere are more and more point in time that becomes impossible, then we’ll look at companies that are buying up the litle guys. Te litle guys other options. ■
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MTD June 2014
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feature
Cold? Snow? Ice? Dedicated LT winter tires feature the By Ann Neal
I
n March 2014, Modern Tire Dealer looked at winter passenger tire trends. As the winter tire buying season winds down, it is time to examine the trends and products in the sometimes forgoten winter LT tire segment, which caters to 3/4- and one-ton vehicles. “LT-metric sized tires are designed for use on light trucks and their higher load carrying capabilities,” says Anant Gandhi, product manager for the United States and Canada, Bridgestone Americas Tire Operations LLC. “LT-metric tires are typically also built with specifc construction features allowing them to be used at higher infation pressures to carry the higher loads that light trucks, such as 3/4-ton and one-ton vehicles, are designed for.” Although Bridgestone considers the winter LT tire market to be stable, the company does expect incremental growth due to new legislation in Quebec, according to Gandhi. Te Canadian province has extended its dedicated winter snow tire requirement to light trucks. Quebec had permited LT-size tires for winter use under the law, which took efect in 2008. Beginning in 2014, only tires equipped with studs or that carry a symbol of a snowfake inside a three-peaked mountain qualify as winter tires. Te symbol shows a tire meets or exceeds industry-established snow traction performance requirements. It is also referred to as the severe service emblem, mountain snowfake and 3PMSF (short for three peak mountain snow fake). How winter LT-size tires difer LT-sized winter tires are constructed to carry more weight and run higher infation pressures than P-metric winter tires. Te tread compound between the LT-size and P-metric size difers, too. “LT winter tires are designed to remain fexible in cold temperatures,” says Steve Bourassa, product manager for Nokian Tyres Inc. “However, they also need to meet the users’ expectations for durability and endurance found in other LT all-season tires.” Bourassa says the company uses stronger and more durable studs in its LT-size tires versus a P-metric winter studded tire. Nokian’s winter LT tires all carry the severe service emblem. Ron Golab, advertising specialist and marketing assistant for Toyo Tire Canada Inc., says LT-sized tires specifcally designed for winter applications basically come with all the latest winter tire technology found in Toyo’s passenger line-up. However, the rubber compound in LT and high fotation sizes intended for commercial or heavy of-road use is “tougher” in order to deal with heavy loads and difcult terrain. “Tey are maximized for snow and ice traction, always keeping in mind the job they need to do,” says Golab. “All Toyo winter tires come with the winter snowfake designation indicating that they exceed the necessary requirements for a winter tire.” Beter for stopping and cornering Bourassa says some consumers and feets looking for tires to help them navigate winter roads will, to their disadvantage, opt for an all-terrain (A/T) tread patern without a severe service emblem, over a dedicated LT-size winter tire design. “Tey ofen refer to the AWD/4WD system, coupled with an A/T tread, as sufcient for the winter period. It is important to remind them that AWD/4WD systems may help them provide traction from a stop, but a dedicated LT-size winter tire will improve
No problem! mountain snowfake, too
Photo courtesy of Nitto Tire U.S.A. Inc.
Dedicated winter tires in LT sizes offer improved traction and safety while maintaining their load-carrying and off-road capabilities.
LT winter tires their stopping and cornering ability with signifcant improvements over an A/T tread without a severe service emblem.”
Winter technology gets greener Bourassa says LT-size tire technology is going in the same direction as car tire technology. “We are looking to fnd lighter materials to lower rolling resistance without sacrifcing load carrying capacity and
more durable compounds. Cut-resistant compounds play a very important role both in tread and on sidewalls.” Nokian introduced new sidewall technology in its latest studded winter tire, the Hakkapeliita 8 SUV. Bourassa says the durability of sidewalls was optimized by aramid fbers, a heat-resistance fber widely used in the aerospace and defense industries.
The Firestone WinterForce LT tire is studdable. Bridgestone says the LT 275/65R20 size will be added in July.
“We are looking for ways to integrate that cuting-edge technology into future generations of LT-size products. We are also working on advancing our stud technology for future LT-size product lines.” Golab says environmental concerns are infuencing the future of LT-size winter tires. Beter tread compounds reduce energy loss, which improves tire efciency and rolling resistance. “Making winter tires with lower rolling resistance and natural products is a focus. Saving the customer fuel, lasting longer, and with a smaller environmental footprint is the goal. All this while not
Hercules says its Avalanche X-Treme light truck tire is formulated with a winter-specifc compound. It is currently available in 17 LT sizes.
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MTD June 2014
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LT winter tires only trying to maintain excellent traction, but continually move forward and improve it.” Te traditional studdable LT-size winter paterns require studs for traction on snow and ice, according to Conrad Galamgam, senior director of the technical department for Nito Tire U.S.A. Inc. “Once these tires are studded, the ice traction increases, but the tire can no longer be
used year-round. Truck owners are looking for tires that can be used year-round; they don’t want two sets of tires.” Galamgam expects new tread compounds to lead to greater winter traction while maintaining tread life for yearround use. “Tese new tread compounds will continue to evolve as we strive to fnd the best balance of winter traction while maintaining tread life for high-
torque, diesel-powered pickups.” Ron Margadonna, senior marketing manager, Michelin North America Inc., also thinks “white road performance increases” will come mostly through material evolution. Barry Terzaken, product manager, light truck and winter tires for Continental Tire the Americas LLC, says his company is constantly trying to improve ice and snow traction while maintaining comfort, a smooth ride and reduced noise. “Of
The General Altimax Arctic is studdable and has the mountain snowfake winter tire symbol.
particular importance for LT-size tires is having a robust construction and being able to carry the heavy loads that a light truck requires.”
Winter LT line-up Eight participants in the winter tire segment provided MTD with updates on their latest LT products. Several manufacturers are introducing new LT-size winter tires while others are adding sizes to existing lines Gandhi, Bridgestone: Te Firestone WinterForce LT is our newest LT winter tire ofering. While the majority of the line was launched in 2010, we have continued to introduce new sizes since then. We just added the new LT 275/65R20, a very popular new LT size, which will launch in July. We also have a Bridgestone ofering, the Blizzak W965 featuring one of our proprietary multi-cell compounds. All of the winter tires that Bridgestone manufactures are dedicated winter tires. We do not mark our A/T
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MTD June 2014
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LT winter tires or all-terrain tires with the three-peak mountain snowfake. At Bridgestone, we diferentiate between all-terrain tires and dedicated winter tires. Terzaken, Continental: Te General Altimax tire line carries the Altimax Arctic, which was introduced in 2007 in popular LT winter tire sizes. Altimax Arctic does have the mountain snowfake winter tire symbol. Julie Manson, brand manager, winter and Canada, Goodyear Tire & Rubber Co.: Te Goodyear Ultra Grip Ice WRT, the Dunlop Grandtrek SJ5 and the Dunlop Grandtrek SJ6 lines all ofer LT-size winter tires. All Goodyear and Dunlop tires that are marketed as winter tires feature the mountain snowfake designation. Steven Liu, director of consumer tire marketing, Hercules Tire & Rubber Co.: We are seeing an increase in demand for winter tires, especially in the light truck segment. We ofer LT sizes in our Hercules Avalanche line, all of which carry the mountain snowfake symbol. Margadonna, Michelin: Te Michelin LTX Winter, the BFG Commercial Traction T/A and the Uniroyal Laredo HD/T have the three-peak mountain snowflake marking well in advance of the 2014 Quebec Province regulation. Galamgam, Nitto: The Nitto Exo The Michelin LTX Winter is a studGrappler AWT, an less light truck and SUV tire with the mountain snowfake symbol. all-weather traction
34
Nitto will introduce the Exo Grappler AWT, an all-weather traction LT tire, in eight sizes in July. Three more sizes will be added later in 2014.
LT-size tire, is designed to meet the demands of of-road truck enthusiasts in need of winter traction. Nito will launch the tire in July in eight sizes, release three more sizes during the remainder of 2014 and continue to expand the size line-up through 2015. Te new tread compound was developed for balanced durability on gravel and highway roads while having the added beneft of traction through wet, snow, ice and slush. Tree-ply sidewall construction helps provide of-road durability, and
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MTD June 2014
The Future of Tire Technology
Landsail Run Flat Tires (RFT) are now available in our most popular passenger performance tires – the LS388, LS588 and LS988. These self-supporting run-flat tires have been developed for drivers of performance vehicles and SUVs looking for the extra element of safety and convenience. Built for vehicles equipped with TPMS (Tire Pressure Monitoring Systems), Landsail RFT tires feature reinforced sidewalls along with wider tire beads manufactured with a low temperature rubber compound. REINFORCED SIDEWALL. The RFT advanced rubber compound and tire cord is stronger than a regular tire sidewall. Because the tire can support the vehicle without air, a sudden deflation results in less weight transfer and tread destabilization. Steering and handling remain near normal. HEAT-RESISTANT TIRE BEAD COMPOUND. The RFT tire compound resists heat build-up under zero pressure driving conditions enabling you to drive an extended distance until the tire is replaced. WIDER TIRE BEAD. The wider RFT tire bead firmly holds the tire in place on the wheel flange preventing tire bead separation from the wheel.
Spirit of Driving Quik-Link: 800-687-1557 ext. 17120
LT winter tires tire. Designed for heavy 4x4 SUVs, light trucks and vans, it features a reinforced steel belt package with a special tear, cut, and abrasion resistant rubber compound for improved durability. Te Nokian Hakkapeliita LT2 has the severe service emblem and is ofered in 12 LT sizes with an additional three pending for late 2014 or early 2015. Te Rotiiva AT is an all-terrain, all-season tire with the severe service emblem introduced in 2012 and available in 16 LT sizes. Golab, Toyo: Our latest winter LT-size tire is the Open Country C/T. It is a commercialduty light truck tire mainly expected to be used by feets or any commercial application needing a tough light truck tire with the winter snowfake designation. Toyo will launch the all-terrain Open Tis addition to the Open Country line Country C/T in Canada for the fall of Nokian says the reinforced steel comes with a tough three-ply sidewall in a 2014. The company says it will be ofbelt package of the Hakkapeliitta 10-E ply rating. With added winter traction fered in 16 LT and high fotation sizes LT2 LT-size winter tire has 60% ranging from 16- to 20-inch rim widths. more steel than a passenger tire. and a cut-resistant compound, we expect this to be a very successful product. It will sidewall traction lugs ofer an additional layer of sidewall be available in the fall of 2014 in Canada. Te tire is considered protection. an all-terrain tire for all seasons. Bourassa, Nokian: Nokian ofers the Hakkapeliita LT2, All Toyo winter tires come with the winter snowflake which was introduced in 2012, as a preferred LT-size winter designation. â–
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MTD June 2014
Commercial Tire Dealer™
From cost-cutting to tier trends MTD outlines the truck tire market with the help of three commercial dealers
By Bob Bissler
I
t should be a good time to be a commercial truck tire dealer. According to the Quarterly Commercial Vehicle Report by IHS Automotive driven by Polk, there were 11,850,000 commercial vehicles registered for use on U.S. highways in December 2013. Tat was 255,000 more than in the previous year. As feets get bigger, their proft potential increases, too. Tat’s where you come in. Part of being a good commercial tire dealer is helping your feet customers conduct good tire management. A customer that is proftable and competitive is going to be around for a while and keep buying tires. Are feets buying tires this year? We asked three commercial tire dealers to describe how their sales of heavy, medium and commercial light truck tires are tracking. A rough winter had a huge efect on sales early in the year. “Right now, we’re trending up slightly over last year, and we believe it’s going to be a fairly good year,” says David Langerak, COO of Wonderland Tire Co., a fve-location dealership based in Byron Center, Mich. Wonderland Tire is No. 71 on the 2014 Modern Tire Dealer Top 100 Retreaders in the U.S. list. “Here in the North, the winter was severe, and we had very poor sales in January and February because of that. We were down 10% compared with last year and we suspected it was directly related to the weather. Ten we were up 10% in March over last year and again in April, so it’s trending upwards nicely.” Langerak says there is a psychological aspect to low sales during severe winter weather because people are not in the mood to buy. He says in a severe winter, commercial feets are challenged just to keep their trucks running and on the road, and to keep their trailers out of the snow banks.
“I would say through May, we’ll probably be up around 5% over the same period last year. We expect that to be beter as the year goes on.”
Flat 2013, hopeful 2014 Langerak says Wonderland’s 2013 sales were flat. The dealership wasn’t alone in that regard. “In comparison to 2013, we are happy that we’re a litle over 2% up in sales,” says Tomas Bowman, vice president of Belle Tire Distributors Inc.’s Commercial Division. Headquartered in Allen Park, Mich., Belle Tire has three commercial and two commercial/retail stores in addition to 83 retail operations. Belle Tire is No. 20 on the MTD Top 100 Retreaders list and number eight on the 2013 MTD 100 Top Independent Tire Dealers in the U.S. list. “Last year at this time, sales were relatively fat, and so was 2012, but 2011 was a phenomenal year for medium-duty, heavy-duty and commercial light truck tires,” says Bowman. “Here in the Northeast, our business has been fat, and sales were terrible this winter,” says Jim McCurdy, president of Maine Commercial Tire Inc., a seven-store operation headquartered in Hermon, Maine, and No. 80 on the MTD Top 100 Retreaders list. “This past winter, there were days when Truck tire market share: Here are the we couldn’t send our winners and losers . . . 43 trucks out to do pickups and deliveries. A SmartWay-verifed tire list . . . 44 big percentage of our Benchmarking tires: An inside look at revenue comes from our how feets manage their tires . . . 46 road trucks that pick up Value, high value, optimal value: TBC’s tires to be brought back brand strategy keys on performance for retreading, and we
ALSO IN CTD
and price . . . 49 Commercially viable . . . 50
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Truck tires deliver tires. If you’re doing $65,000 a day in billing and you have a blizzard, you don’t send your truck out and that $65,000 is gone forever. If you have four days like that in a month, you’re talking about hundreds of thousands of dollars’ worth of revenue that didn’t get delivered and you just lose that working day.� McCurdy says sales started picking up in April and the increase continued into May. “If our customers are having a good year, we have a good year. If something happens that slows our customers’ business down, like a heavy winter with a lot of snow and ice, then our business slows down.� McCurdy predicts his sales will be strong in the last two quarters of 2014. “Because we got such a slow start with the severe winter, I think we’re going to end up even in all three categories.� “Right now sales are awesome,� says Belle Tire’s Bowman. “We opened strong in May and it hasn’t slowed down yet, and that is because of our frost laws. In Michigan and Ohio, the Department of Transportation issues frost laws where you can only carry a certain amount of weight per axle. Tey lifed the frost laws on April 25. March and April sales were slightly increased from 2013.� Bowman believes that through the end of the year, he is going to see a moderate sales increase of anywhere from 3.5% to 4% in commercial truck tires. “I atribute a lot of that to the current demand for construction,� he says. “Every road in the country needs some work done and Michigan is on the list of states with the worst roads in the U.S. “Housing is starting to take of again. Any time there’s new construction, you’ve got a lot of people hauling materials and that takes trucks. Tose are all good indicators for strong tire sales.�
Cost-cuting Last year in our coverage of heavy truck, medium truck and commercial LT tires, some manufacturers told us they were seeing feets turning to smaller trucks to save on costs.
McCurdy, for one, isn’t seeing that with his feet customers. “We do business with long-haul truckers, and if you’ve got over-the-road feets they have to have tractor trailers. Tey can’t have smaller equipment,� he says. “We’ve got waste companies and they can’t go to smaller vehicles because they’ve got those heavy-duty rear-end packers. We’ve got construction companies and they can’t downsize because they want the biggest dump truck they can haul gravel in. Te vocational guys are the regional haulers, UPS, Pepsi-Cola and the grocery guys; they can’t downsize, either.� Obsessed with improving their costs per mile, feets are turning to alternative fuels and low rolling resistance tires. Over the last six years, McCurdy has seen more feets using natural gas. “As far as feets cuting costs, we’re seeing a lot of propanepowered vehicles coming out,� says Bowman. “You’re seeing more and more of the brown box vans, such as UPS and Frito-Lay trucks, running on propane and also natural gas. It really doesn’t afect our business because they’re still running on tires. Te reason they’re doing it is it is good for the environment and it’s cheaper than diesel. Tire wear is the same no mater the fuel.�
Demand for more service All three dealers said that in recent years, many feets are demanding more service from them. All three ofer 24/7 emergency road service to help provide it. Maine Commercial takes it one step further than that. “One unusual thing that we do is perform feet checks on weekends,� says McCurdy. “Some trucks can only be viewed when they park on the weekends. Construction equipment is one example. Maine Commercial Tire has a dedicated feet inspection employee whose job is to gather data (air pressures, tire condition) for our customers.� “I would say the most demanding thing we’ve run into over the last couple of years is the SmartWay program,� says Wonderland Tire’s Langerak. “Anybody going into California is required to run tires that are SmartWay-approved both for new tires and retreads. We have a fair amount of customers, especially in Michigan, who
Rolling resistance: a breakdown Commercial dealers tell MTD that their customers are becoming more conscious of fuel effciency. Here is what the Tire Retread & Repair Information Bureau (TRIB) says about rolling resistance and some of the other factors that can infuence fuel economy. 1. Each wheel position contributes to a portion of a vehicle’s total rolling resistance. Drive and trailer tires account for approximately 85% of a vehicle’s total rolling resistance. A standard confguration tractor trailer’s rolling resistance by position is: t TUFFS UJSFT â DPOUSJCVUJPO UP SPMMJOH SFTJTUBODF t ESJWF UJSFT â DPOUSJCVUJPO UP SPMMJOH SFTJTUBODF t USBJMFS UJSFT â DPOUSJCVUJPO UP SPMMJOH SFTJTUBODF
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2. Much of the rolling resistance of a tire comes from the tire tread (35% to 50%). 3. Shallow original tread tires have lower rolling resistance than deep original tread tires. Rib design tires have lower rolling resistance than lug design tires. 8PSO UJSFT IBWF MPXFS SPMMJOH SFTJTUBODF UIBO OFX tires. Here are the effects of remaining tread depth of a tire on rolling resistance and fuel effciency: t XPSO DBO JNQSPWF GVFM FDPOPNZ CZ t XPSO DBO JNQSPWF GVFM FDPOPNZ CZ t XPSO DBO JNQSPWF GVFM FDPOPNZ CZ If a rolling resistance improvement is made with tread compound only, the improvement diminishes as the tread is worn down to zero tread depth.
MTD June 2014
Quik-Link: 800-687-1557 ext. 17122
Truck tires go to California or states close to California, and they haul product back to Michigan. Tose guys are now trying to be in compliance with SmartWay more and more.” Langerak says his feet managers report that over the last 10 years, there has been a trend toward feets performing more of their own services. Tat includes tire service. To address that issue, Wonderland Tire ofers customized, full-service programs. “We go in several days a week at certain times of the day, and we do a full visual inspection of the tires for fats, low tread and low air pressure; pull anything of for repair or replacement; fll out the paperwork; do the reporting for them; and do all the retreading and repairing, rim refnishing, wheel polishing and whatever else the customer needs.” At Maine Commercial Tire, McCurdy says his focus has been on helping his feet customers “do the math” and look at cost-per-mile rather than tire price alone. “We’ve forced this issue on some feets by saying, ‘Look, you’re losing half your mileage on a steer tire by not buying a quality tire. Let us do feet inspections, let us do a costper-mile analysis for you and we can show you where you can save money by using a beter-quality product.’ “We go out there and say, ‘Let us take you out of the tire business. You don’t know as much as we do about tires. Let us be your tire guy. I guarantee you we’ll save you money.’ Usually that works.” When it comes to servicing feets, the key is performing more yard work, says Bowman. “We are seeing our feet
A look at popular sizes Sizing up medium and commercial LT tires We asked Belle Tire Distributors Inc., Maine Commercial Tire and Wonderland Tire Co. what their top three most popular selling sizes are for medium-duty and commercial light truck tires. How do these sizes stack up to the Rubber Manufacturers Association’s (RMA) list of the most popular replacement sizes in 2013? Medium-duty
Comm. light truck
Belle Tire
1. 11R22.5 2. LP11R22.5 3. 255/70R22.5
1. LT225/75R16 2. LT245/75R16 3. LT265/75R16
Maine Commercial
1. 11R22.5 2. 11R24.5 3. 295/75R22.5
1. LT245/75R17 2. LT265/70R17 3. LT225/75R16
Wonderland Tire
1. 295/75R22.5 2. 275/80R22.5 3. 11R22.5
1. LT245/75R16 2. LT225/70R19.5 3. LT225/75R16
RMA
1. 295/75R22.5 2. 11R22.5 3. 11R24.5
1. LT245/75R16 2. LT265/75R16 3. LT265/70R17
customers demand more types of service from us now. We’re doing more yard work for them on the weekends to identify their tire issues. Yard work includes checking the tire pressure, checking all the vehicles and making sure the tires are matched up correctly. A lot of times a tire is damaged and the drivers don’t know that.” Bowman also gives his feets “beter bang for their buck” by ofering a wheel reconditioning program, performing feet surveys and doing tire rotations. “We match out their tires. We do trailer inspections, glass replacement and glass repair. It keeps their trucks road worthy and helps them maintain their maintenance ledgers. “We always had been able to ofer these services, but we’re seeing more and more demand for these services in the past four or fve years.”
HD pickups, China, price Wonderland Tire, Belle Tire and Maine Commercial all experienced reduced sales due to a tough winter. Wonderland Tire and Belle Tire expect 2014 sales to be up over 2013; Maine Commercial expects a fat 2014. Te dealerships are also seeing some of the same trends. “We’re seeing a trend currently of contractors and the guys that are using the one-ton pickup trucks going from a light-duty one-ton to a heavy-duty one-ton,” says Wonderland’s Langerak. “Tey are going from a Ford F-350 to an F-550 and even F-650 because they were overloading the lighter-duty trucks and they want to be in compliance. Because of that, we’re seeing a trend away from 16- and 17-inch to 19.5-inch. “With commercial light truck tires, we’re seeing a trend Quik-Link: 800-687-1557 ext. 17123
40
MTD June 2014
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CR983
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Truck tires toward the 19.5 sizes because they are opting for a heavier-duty light truck vehicle for their commercial business; it holds up beter for them.” Langerak says another trend he is seeing is the infux of Chinese-made tires. Some of his feet customers now ask for them. “Tey tend to be customers that do their own tire service, so they’re more independent of what we might recommend. Some of these guys even band together and buy them direct from China by the container load.” Maine Commercial’s McCurdy has seen not only an increase in demand for Chinese and other low-priced tires, but also improvement in their quality. “Over the last three or four years, the low-priced tires have evolved and they are much beter now than they were. We started selling more of these tires because some of them are as much as $100 cheaper per tire than some of the name-brand truck tires.” McCurdy says that when it comes to retreadability, many new Tier Tree tires now are similar to Tier Two tires. “Tat $100 per tire diference means the second tier tires are losing sales. We wind up selling more third tier tires than we’d like to, but if we’re not going to sell lower-priced tires, we’re not going to sell tires.” Belle Tire’s Bowman sees a similar trend. “Te biggest change I’m seeing this year versus 2013 is the infux of the Tier Four product, the majority coming from China.” Bowman says these lines usually have steer, drive and trailer
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tires in four to fve sizes. Very few are wide-base or trash hauler application type tires. “Te lines are prety stripped down and dirt cheap with no programs; they are all purchased by the container. Te thing that concerns commercial dealers like me is that if a feet is retreading, Tier Four products from China are right in the price range of retreads.” Bowman says Belle Tire does stock these tires so that they don’t lose a sale when a customer requests them, and then they “sell them up from that point.” He says Tier Four is defned strictly by price and has been around for about a year. “Te last four or fve months of 2013, we started seeing more Tier Four tires. We had never even heard of a lot of this stuf coming out.” Bowman says he is also seeing some of Belle Tire’s feet customers making the switch to wide-base tires. With that comes another sales opportunity. “In the last six to seven months, we’ve been seeing more wide-base tires, the 445/50R22.5s, the 455s and the 55R22.5s. We are converting a number of feets over. Tey’re doing it for the simple fact that it’s more fuel efcient buying one tire instead of two tires. Te nice thing about it is they have to buy a wheel to go along with it, and that’s where you can make some money.” Another extra sell opportunity is refnishing of the wheels. “We’ve been doing wheel restoration for some time now, and we have a new process in place that has helped us increase our production,” says Bowman. ■
Quik-Link: 800-687-1557 ext. 17125
MTD June 2014
Brand shares
Truck tire market share Here are the frst-half winners and losers By Bob Ulrich
2014 MATS
At MATS, many manufacturers inith nearly half the year in the history books, truck troduced truck tires, with fuel-efcient tire market share trends are starting to take shape. and wide-base tires in the spotlight. Chinese manufacturers, for example, continue to Continental Tire the Americas LLC increase their truck tire exports to the United States. showcased more new tires than any Japanese manufacturers appear to have recovered com- other company. It introduced fve, pletely from the 2011 East Japan Earthquake that signifcantly including the Conti Hybrid HS3, a reduced truck tire shipments to the U.S. In contrast, South combination steer/all-position tire Korean producers have decreased truck tire exports from designed for both regional and longYokohama introduced their homeland by 1%. haul applications. Cooper Tire & Rubber Co. is again making truck tires at its Te Continental brand accounts two wide-base tires MATS, including joint venture plant, Cooper Chengshan (Shandong) Tire Co. for 5% of the U.S. market, but has at the SmartWay-verifed Ltd., following a six-month strike. Cooper was one of many tire increased its domestic capacity by 902L Ultra Wide Base companies showcasing their latest tires at the 2014 Mid-America 20% over the last year. Te General regional drive tire. Trucking Show (MATS) in Louisville, Ky., in late March. brand has a 3% share. Modern Tire Dealer estimates replaceYokohama Tire Corp. and Toyo Tire ment truck tire shipments will rise 3% in U.S.A. Corp. introduced three truck tires 2014 U.S. REPLACEMENT MEDIUM/ 2014, to 16 million units. Based on that each. Te Yokohama and Toyo brands HEAVY TRUCK TIRE BRAND SHARES assessment, here are our market share represent 10% and 2.5% of the market, (Full-year estimate: 16 million units) updates for the frst half of 2014. (Last respectively. Brand 1st half 2014 December, the Rubber ManufacturFour years ago, Toyo held a 4.5% share ers Association forecast a nearly 2% of the U.S. replacement truck tire market Michelin 18.0% increase, to 15.9 million units.) when it manufactured truck tires as part Bridgestone 17.5% of the joint venture GTY (for General, Goodyear 12.5% U.S. imports Toyo and Yokohama) plant in Mount Domestic truck tire imports were Vernon, Ill. In 2011, Toyo parted ways Yokohama 10.0% up more than 22% through the frst with Continental and Yokohama, losing Firestone 8.0% quarter of the year. At this rate, they signifcant market share. Te East Japan Continental 5.0% will set a record for the number of U.S. Earthquake also hurt the company. truck tire imports in a year. Michelin North America Inc. (Michelin Double Coin 4.0% Imports from China, which repreX One Line Energy T wide-base), Hankook General 3.0% sent 60% of the total number of truck Tire America Corp. (Smart Flex DL12 Hankook 3.0% tire imports, were up 19% for the frst regional/long-haul drive), Goodyear Tire quarter. Imports from Japan, however, & Rubber Co. (G505D Fuel Max longHercules 3.0% were up nearly 75%. Here are the top haul) and TBC Corp. (Sailun S606 EFT; Toyo 2.5% fve truck tire exporters to the U.S., DynaCargo line) also introduced new BFGoodrich 2.0% and their frst-quarter 2014 shipments truck tires at MATS. compared to 1Q 2013. Cooper Tire & Rubber Co. re-introduced Dunlop 2.0% the Roadmaster RM234 and RM254 Dynatrac 2.0% Rank/country % increase premium regional tires it launched at Roadmaster 1.5% 1. China 19% MATS in 2013. The strike at the joint 2. Canada 9% venture plant in China not only curtailed Sailun 1.5% 3. Japan 75% the launch, but also was responsible for Sumitomo 1.5% 4. Tailand 70% cuting the company’s truck tire market Gladiator 1.0% 5. United Kingdom 28% share in half —from 3% at one point in 2013 to 1.5%. Cooper’s market share is Kelly 1.0% Te percentage of radial truck tires expected to rebound by the end of this year. Kumho 1.0% was up, too. Tey now represent 95.5% Mike Simon, vice president of marketing Others 2.5% of all truck tire imports, with China the in North America, says production at the Source: Modern Tire Dealer statistics No. 1 exporter. facility is “back to normal.” ■
W
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SmartWay update
What is not verifed? SmartWay may soon become the only way
L
ast June, 202 truck tires were SmartWay-verifed. Tat has increased by more than 50% since then, to 325 tires. More signifcant is the increase in the number of tire brands represented. In the last 12 months, brands with at least one SmartWay-verifed steer, drive or trailer axle tire have risen from 39 to 93. Some of the brands that were not listed last year are Blacklion and Diamondback (distributed by Husky Tire Corp.); Crosswind (Horizon Tire Inc., which also distributes Linglong and Triangle, two other brands on the list); Ironman (an associate brand from Hercules Tire & Rubber Co., a subsidiary of American Tire Distributors Inc.); and Zeetex (ZTI Corp.). In May, the Environmental Protection Agency, which over-
sees the SmartWay program, added the Blacklion BF156 FST and BF155 FST to the list. Both are steer tires. Te Blacklion BT166FST trailer tire also is SmartWay-verifed. Tree of eight tires that make up the new Ironman truck tire line are SmartWay-verifed: the I-601 steer, I-208 drive and I-460 trailer paterns. Hercules says it is pursuing SmartWay verifcation for additional Ironman I-Series paterns. Michelin North America Inc.’s new BFGoodrich DR454 is the frst SmartWay-verifed BFGoodrich drive tire. It joins the BFGoodrich ST244 and ST230 all position/steer tires and the TR144 trailer tire on the list. Michelin has two other new SmartWay-verifed tires: the Michelin X One Line Energy T wide-base and the Michelin X Multi Energy Z regional steer. ■
SmartWay-verifed truck tires: They number 325 to date
Te following low rolling resistance tires are SmartWay-verifed when used on Class 8, line-haul tractor trailers and properly infated. Brand Advance
Steer GL283A L.E.T., GL282A L.E.T.
Aeolus Akuret Annaite Aosen Arisun Atlas
HN267, Ultra HN277 DSR266, DSR116, A425 600 DSR266, DSR116 CR989, AS600 STRD09e+, AP100e+, APW09e+ (315/80R22.5 only) UFO3, UF04 BL201,BL202 F816e+ ST244, ST230 BF156 FST, BF155 FST BS636 BT212, BT212N R280, R287, R287A, R283 Ecopia, R268 Ecopia
Aurora Barkley Benchmark BFGoodrich Blacklion Boristar Boto Bridgestone
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Briway Continental
BS636 HSL1 Coach, HSL2 (replaces HSL), HSL2 Eco Plus, HSR, HSL2+ Eco Plus, HSR1, HSR1 Eco Plus, HSR2, HSR2 Eco Plus, HSR2 SA
Crosswind Diamondback Dongfeng Double Coin Doublestar Dunlop Eced Falken
F816e+ DBSS6+ DSR266, DSR116 FR605, RR680 DSR266, DSR116 SP384 FM BT212, BT212N RI109 Ecorun, RI128 Ecorun
Drive GL283A L.E.T., GL293D L.E.T., GL282A L.E.T., GL 266D L.E.T., GL268D L.E.T. HN308+ DSR266, DSR728, DSR355, DSR768, A425 600 DSR728, DSR266, DSR355, DSR768 CM983, AD737 DRV09e+
Trailer GL285T L.E.T.
UZ02, UZ03 BL801, BL802 LLA08e+, LLD37e+ ST244, DR454 N/A BD787 N/A M720, Greatec M835 Ecopia, Greatec, M710 Ecopia, S803Z, S718WZ, S718YZ, R268 Ecopia, M760 Ecopia BD787 HSL1 Coach, HDL Eco Plus, HDL2 Eco Plus, HDL2 DL Eco Plus, HDR, HDR1 Eco Plus, HSR, HSR1, HSR1 Eco Plus, HSR2, HSR2 Eco Plus, HSR2 SA, Eco Plus HD3, Hybrid HD 3, HDR2 Eco Plus N/A D8SD* DSR728, DSR266, DSR116, DSR355 FD405, FD425, RR680 DSR728, DSR266, DSR355 SP456 FM N/A BI887 Ecorun, BI830
UFO7 BLT01 N/A TR144 BT166 FST BT838 N/A Greatec R135 Ecopia, R195, R197 Ecopia, S197
HN808 DSR266, DSR116, DSR669 N/A DSR266, DSR116, DSR669 CR915, AT500 TR09e+
BT838 HTL Eco Plus, HTL1
N/A N/A DSR266, DSR116 FT105, FT125 DSR266, DSR116 SP193 FM N/A RI119 Ecorun
MTD June 2014
Brand Fargo Firestone General Geostar Gladiator Goodride Goodyear GT Radial Hankook Hercules Hilo Hunter Ironman Jinyu Kumho Leao
Linglong
Long March Michelin
Milestar Milever Regul Roadlux Roadmaster (Cooper) Roadone Roadpro RoadX Runking Sailun Samson
Steer FG116 (11R22.5 only), FG216 FS507 PLUS, FS591 S371, S580, S581 G300, G305SW QR55ST-E CR989 G399 Fuel Max, G399A Fuel Max, G662 Fuel Max
Drive FG516 FD695 PLUS, FD691 D660, S371, S580, S581 N/A QR99PD-E CM983, CM980 G305 Fuel Max AT, G392 SSD, G392A Fuel Max, G572 Fuel Max, G572A Fuel Max, G572 1AD GSL213 FS GT669+ FS AH24, AL07+, AL11 AH24, DL11, Z35A, e³WiDE DL07 H-801, H-802, H-502, H-902 (11R22.5 only) H-702, H-703 600 600 N/A HT529 I-601 I-208 FJY588 FST N/A KLS02e, KRS02e KLD01e, KLD02e LLF16e+, F816e+, LLF02e+ (315/80R22.5 LLA08e+ (11R22.5 only), ADE 822, LLA18e+ only), LLA08e+ (11R22.5 only), AFE823, (385/65R22.5 only), LDE822 (11R22.5 only), LLA18e+ (385/65R22.5 only), LAL800e+ LAL800e+ (11R22.5 only), LLD37e+, ADE837 (11R22.5 only) F816e+, LLF16e+, LFE823, LLF02e+ LLA08e+ (11R22.5 only), LLA18e+ (385/65R22.5 (315/80R22.5 only), LLA08e+ (11R22.5 only), LDE822 (11R22.5 only), LAL800e+ only), LLA18e+ (385/65R22.5 only), (11R22.5 only), LLD37e+, LDE837 LAL800e+ (11R22.5 only) LM116 (11R22.5 only), LM 216 LM516 X Coach XZ, XZA3, XZA3+, XZA2, XZA1+, XDA Energy, XDA3, X-One XDA, X-One XDN2, XZA2 Energy, X Multi Energy Z X-One XDA Energy, X Multi Energy D, X Line Energy D, X-One Line Energy D, X Coach XZ, XZA3+, XZA 1+, XZA2 Energy, X Multi Energy Z BS626SW, BS627SW N/A SFR03, SAH01 SFR03, SAH01 GL282A L.E.T., GL283A L.E.T. GL282A L.E.T., GL283A L.E.T, GL288D L.E.T. (11R22.5 only), GL266D L.E.T., GL 268D L.E.T. R116 (11R22.5 only), R216 R516 RM180, RM185 RM851
Trailer FG120 (11R22.5 only) FT455 PLUS, FT491 ST250 N/A QR25TR-E CR915 G316 LHT Fuel Max, G316 Fuel Max DuraSeal, G394SST GT979 FS TL 01, e³ WiDE TL07 H-903 N/A N/A I-460 N/A KLT02e ATE821, LTE 821, T810e+
LLA08e+ (11R22.5 only), F816e+ S180 FS ST355 R³ BT212, BT212N S605 EFT, S606 EFT GL283A L.E.T., GL282A L.E.T.
N/A R910FS TR 528 R³ N/A S622 EFT GL 285T L.E.T.
Sumitomo Sunny Super Cargo Synergy TBB Topstar Toyo Triangle Wanli Westlake Wind Power Yokohama
ST778SE, ST778A SE SFR03, SAH01 SC02, S100, S300 AP400, SP100 GR100, GR110 DSR266, DSR116 M137, M177 TRS01 SFR01 (315/80R22.5 only), SFR03, SAH01 CR989, CR960A WSR36, WSL 61 RY617, RY023, 103ZR, 101ZL, RY087
Zeetex
HT14 extra
www.moderntiredealer.com
LLA08e+ (11R22.5 only), LLD37e+ R610FS CD 880-R³ N/A S768 EFT, S753 EFT GL283A L.E.T., GL293D L.E.T., GL282A L.E.T., GL266D L.E.T., GL 268D L.E.T. ST938SE SFR03, SAH01 SC08 N/A N/A DSR728, DSR266, DSR355 M657 TRD01 SFR03, SAH01 CM983, CM980 WDR31 703ZL, TY517mc2, TY517 (445/50R22.5 only), 709ZL TZ12 extra
LTE 821, T810e+
LM 120 (11R22.5 only) XTA Energy, XT1, X-One XTA, X-One XTE, X Line Energy T, X-One Line Energy T N/A N/A GL285T L.E.T. R120 (11R22.5 only) RM871
ST710SE N/A SC05 (11R22.5 only) N/A N/A DSR266, DSR116 M157 N/A N/A CR915 N/A RY407, RY587, RY587mc2 HT16 extra (11R22.5 only)
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TMC show
Benchmarking tires An inside look at how feets manage their tires By Jim Park
T
he S.2 Tire and Wheel Study Group of the American Trucking Associations’ Technology and Maintenance Council (TMC) recently conducted a tire management survey, which produced some eye-opening statistics. Four feets presented overviews of their tire management experiences at TMC’s recent annual meeting in Nashville, Tenn., in a session called Benchmarking the Success of your Tire Program. While these four diverse feets were not necessarily part of the survey results, this inside look will prove valuable to help your feet customers get the most out of their tire purchases.
FedEx Ground, Pitsburgh, Penn.
• Fleet: 33,240 single-axle trailers, 10,032 tandem trailers, 9,000 single axle converter dollies for a total of 256,000 wheel positions. • FedEx Ground retreads all casings up to six years of age then downgrades them to switcher tractors, geting an average of two retreads per trailer tire and one per yard tractor. • All new and retreaded tires are SmartWay-verifed, low-profle 22.5 duals. Tey tried wide-base singles but are now moving away from them. All tire work is subcontracted.
The average number of service calls for the reporting feets was one per tractor for every 74,000 miles or about 1.5 service calls per year per tractor.
Tire survey quick facts from the Technology and Maintenance Council
46
The S.2 Tire and Wheel Study Group of the American Trucking Associations’ Technology and Maintenance Council (TMC) surveyed 435 feets. Of the 21 respondents, 50% were line haul operations, 41% regional and 29% reported some pickup and delivery. The average number of trailers in the responding feets was 2,093, indicating some large feets responded. Here’s a quick look at some of the results.
Frequency of tire pressure checks: Daily: 4% Weekly: 33% Monthly: 19% Only at PM interval: 29%
Uptake of fuel-efficient, low-rollingresistance tires: Steer position: 94% Drive position: 88% Trailer position: 81%
Average tire mileage to take-off by position: Steer position: 117,000 Drive position: 236,000 Trailer position: 123,000
Wide-base single tires: Eight of the 21 feets reported using at a drive position, 11 on trailers
Average frequency of tire-related roadside service calls: Average across the 21-feet sample was
Uptake on tire maintenance technology: Automatic tire infation system on trailer: 62% Tire pressure monitoring: 29% – 50/50 tractor and trailer
93 service calls per month. Average monthly mileage for the 21 fleets was 6.9 million, for an average of one service call every 74,000 miles, or about 1.5 service calls per year per tractor. The average for trailers is higher than that. The top two reasons for tire service calls are road hazards/impact breaks and under-infation due to a puncture. Fleets doing scrap tire pile analysis: 88% Fleets using an add-on aftermarket tire sealant: 14% (two feets reported using sealants on drive tires; one feet used sealant on trailer tires) Fleets actively benchmarking against competition: 25%
MTD June 2014
• They have automatic tire inflation systems on 28,000 single-axle 28-foot trailers and dollies. • Tire pressure: 85 psi because the trailers run very light loads.
Major challenges: Geting consistent feet inspections with tire conditions and pressure checks. FedEx Ground is currently looking for ways to improve the accuracy and frequency of tire inspections with data-driven solutions through onboard pressure monitoring and telematics.
so it’s starting to move in that direction. Sixty power units are currently running 455-size wide-base single tires because of weight sensitivity. South Shore runs 100 psi in all tires except wide-base singles, which are 125 psi. • Currently using automatic tire infation on 50% of the feet and installing on all new equipment. Major challenges: Trying to get driv-
ers to check tire pressure and condition during pre-and post-trip inspections and avoid curbing the trailer tires. Exploring ways of lowering tire cost per mile.
Batesville Logistics Inc., Batesville, Ind.
• Fleet: 82 tandem tractors, 311 pup trailers, 117 53-foot trailers running low-profle 22.5 low-rolling-resistance
Crete Carrier Corp. Lincoln, Neb.
• Fleet: 12,500 tandem trailers and 5,000 power units with 150,000 wheel position across three company divisions van, fat and refrigerated. • Crete retreads an average of 2.5 times per tire up to six years of casing age. • All new and retreaded tires are SmartWay-verifed; 295/75R-22.5 is the predominant size. • Tire pressure: 110 psi on steer tires, 100 psi on drive tires and 95 psi on trailer tires. • Crete has a mounted inventory program and actively conducts scrap tire analysis. Major challenges: Having enough time to evaluate tires. Tire inspections are difcult because the equipment isn’t in ofen enough. Crete lacks the ability to track casings from cradle to grave. Tey lose a lot of casings in over-the-road repairs so they lose twice — no casing value and loss of failure analysis.
South Shore Carriers, Sandusky, Ohio
• Fleet: 200 power units, 450 trailers, mostly fatdecks. Local/regional carrier with 240-mile average length-of-haul mostly loaded one way, return empty. • South Shore retreads casings up to seven years old. Steer tires are retreaded the frst time for drive positions; drive tires are retreaded frst time for drive position and second time for trailer position. • Te company runs spread-axle fatdecks, which are hard on tires because of the dragging that occurs in turns. Tat’s what makes retreading difcult. • Wide-base single tires are retreaded once for drive positions. • Te company runs mostly 11R22.5 dual tires, though it recently purchased some used equipment on low-profle 22.5 tires,
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Quik-Link: 800-687-1557 ext. 17126
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TMC show dual tires. Very few wide-base singles are in the feet. • Tires are retreaded up to five years of age with no more than two repairs (with no shoulder or section repairs) for drives, and casings up to six years of age for trailers with a maximum of two shoulder and one section repairs. Te feet runs all tires down to 4/32-inch tread depth. • Infation pressures are 100 psi in the steer, dolly and trailer positions, 95 psi in the drive tires. • Currently testing automatic infation systems on 24 new pup trailers. Major challenges: Trying to get drivers to participate in tire maintenance, with regular gauged pressure checks and condition reports.
Fleet priorities
Each of these four feets has diferent priorities and strategies for improving tire life and lowering costs. FedEx Ground, for example, is experimenting with various tire pressures. Te company ran its tires at 85 psi
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for 10 years, and is now trying to see if wear improves or worsens at 95 psi. Te company also is testing steer tires on its dollies rather than trailer tires.” At Crete Carriers, the ongoing struggle is early detection of wear and conditions that could cause problems out on the road. It tries to identify irregular wear before it becomes serious enough to cause permanent damage to a tire, and it tries to stay on top of infation pressure so it doesn’t result in an on-road failure. At Batesville, the company is atempting to get the best possible mileage out of its fuel-efcient tires. It is looking at a few diferent scenarios such as running only original tires on drives and retreads on the trailers or vice versa. It also is looking at casing value and whether the company is beter of retreading or selling of its tires as used. South Shore has perhaps the largest challenges to overcome, with its full load out and empty back scenario. Also, spread-axle trailers just eat tires, the company says. Te company is trying a new retread that was designed just for spread-axle trailers, and it’s working well so far. On
Quik-Link: 800-687-1557 ext. 17127
the tractors, the company is aggressive with monitoring tread depth and wear. It rotates the tires frequently and expects to get 300,000 miles on a set of drive tires. And fnally, another issue that most feets grapple with regularly is alignment. None of the four sample feets do regular alignments on tractors, but they do watch closely for truck-induced premature wear. Each said they will do an alignment when the situation demands. Te surveyed companies noted that drivers can be involved in tire maintenance as “early warning systems,” but some drivers just won’t get involved. Drivers are supposed to check tires as part of the pre- and post-trip inspection with a gauge, but it is a “hard sell” to get them to do it. Some said drivers tend to pay more atention to the tractors than the trailers, so the automatic tire infation system is hooked into the telematics system to notify feet managers of airing events on trailers. ■ Jim Park is equipment editor for MTD’s sister publication Heavy Duty Trucking.
MTD June 2014
Mid-America Trucking Show
“We want to give dealers a compelling reason why they should buy our truck tires,” says TBC’s Bill Dashiell. “The combination of price and performance are very important. People want value.”
Value, high value, optimal value TBC’s brand strategy keys on performance and price By Bob Ulrich
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ne of the largest booths at the Mid-America Trucking Show (MATS) was the TBC Corp. booth, which featured three truck tire brands: Sumitomo, Sailun and the new DynaCargo. Te three brands give the company a strong presence in the replacement truck tire segment, and a full line in every sense of the phrase, from tier to axle position and application. Tat includes wide-base and fuel-efcient tires. Between the two of them, Sailun and Sumitomo account for 3% of the domestic replacement market, according to Modern Tire Dealer statistics. Tat should increase with the introduction of DynaCargo, an entry-level value brand. Bill Dashiell, vice president of product marketing, says the line should not cannibalize Sumitomo or Sailun sales because each product ofers distinct features, benefts and price points. “DynaCargo is in the process of releasing two designs as SmartWay verifed, yet the line is simply for the guy who is looking The SmartWay-verifed Sailun for the lowest cost of entry S665 EFT is available in six sizes.
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for a replacement tire,” says Dashiell. “It is a full line, too, with everything from a decoupling groove steer tire to a new 385/65R22.5 mixed service wide-base tire.” A size 425/65R22.5 wide-base tire will be available in the fourth quarter.
‘High value’
Te next generation Sailun S606 EFT (for Environmentally Friendly Technology) is SmartWay-verifed. Dashiell says the new premium all-position steer tire competes against brands such as Hercules and Double Coin in the upper Tier Tree segment. However, it is priced with mid- to lower Tier Tree tires. Available in six sizes, it features the following:
• a 22/32-inch tread depth; • extra-wide and square shoulders with built-in sipes for stability and traction in all weather conditions; and • interlocking symmetrical tread blocks that promote long, even wear and a full contact footprint. To complement the S606 EFT, TBC introduced the Sailun S665 EFT all-position tire. Also SmartWay verified, it is designed for the regional and urban markets and targets the “mid-value segment,” says Dashiell. Te Sailun S665 has an 18/32-inch tread depth and features a fve-rib design with blading and siping. Te solid shoulder helps prevent damage in tough urban applications. TBC markets Sailun as a high-value product. Sumitomo, an aggressively positioned Tier Two truck tire, is marketed as TBC’s optimized tire for the best cost-per-mile. Sumitomo and Sailun have multiple cap warranties. DynaCargo has a one-cap warranty. ■
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Commercially viable
Trelleborg ProgressiveTraction concept farm tire relleborg AB, the global parent company of Trelleborg Wheel Systems Americas Inc., has developed ProgressiveTraction technology that has been applied to a concept tire size 650/65R38. Te company says the new tread of the ProgressiveTraction tire is characterized by a special double lug that operates on the soil at diferent times, progressively releasing higher traction when and where it is needed. Te double lug also provides the tire with beter fotation capability, ensuring an even pressure distribution over the extra wide footprint. During feld tests, ProgressiveTraction tires demonstrated a traction capacity more than 10% higher when compared to standard technology tires, says Trelleborg. Moreover, the extra pulling force resulted in a 3% to 5% reduction of working
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time, providing farming operations with substantial cost savings. In addition, depending on the tractor and its tire confguration, higher fotation results in beter pressure distribution on the ground, boosting the yield of crops while preserving soil from compaction and erosion. On the road, the new lug structure is specifcally designed to reduce tread vibrations, limiting the tire’s rolling resistance. Fuel consumption, driver comfort and handling, as well as the tire’s wear resistance, will beneft signifcantly from the change in tread.
New fuel-effcient BFG DR454 drive tire
45/65R45 L-5 radial loader tire for use on large loaders in mining and aggregate applications. It was engineered to provide optimum traction in today’s heavy mining applications and to accommodate large loaders that require durability in a tire’s bead and sidewall areas due to heavy lifting weights, the company says. CHINA MANUFACTURERS ALLIANCE LLC Quik-Link: (800) 687-1557, ext. 17162 www.mtdquiklink.com/17162
Michelin North America Inc. says the BFGoodrich DR454 SmartWay-verifed highway drive tire offers low rolling resistance and meets the fuel effciency expectations, carrier certifications and regulations that today’s highway operations demand. The company says it also provides serious grip in wet conditions, excellent retreadability and long, even wear. Combined with the ST244 and ST230 all position/steer tires and the TR144 trailer tire, BFGoodrich now offers a total SmartWay-verifed solution for highway applications. MICHELIN NORTH AMERICA INC. Quik-Link: (800) 687-1557, ext. 17160 www.mtdquiklink.com/17160
Bridgestone R244 all-position steer radial Bridgestone Commercial Solutions says the new Bridgestone R244 All-Position Steer Radial Tire meets the demands of dump trucks and concrete mixer truck feets which spend a higher percentage of their miles in on-highway use. Designed with a wide-base ribbed steer pattern, the tire performs well both on- and off-highway without sacrifcing the traction needed on rougher roads. It comes in three sizes in the U.S. and Canada: 425/65R22.5, 385/65R22.5 and 445/65R22.5 BRIDGESTONE COMMERCIAL SOLUTIONS Quik-Link: (800) 687-1557, ext. 17161 www.mtdquiklink.com/17161
Double Coin REM-19 off-road radial Double Coin Holdings Ltd. and its American subsidiary, China Manufacturers Alliance LLC (CMA), offer the Double Coin REM-19
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Goodyear G505D Fuel Max The Goodyear Tire & Rubber Co. says the new Goodyear G505D Fuel Max is the most fuel-effcient commercial drive tire in its line-up, and features Goodyear’s exclusive Fuel Max Technology, which contains fuel-saving compounds, tire constructions and specialized tread designs to help reduce rolling resistance. A deep 24/32-inch tread depth provides enhanced wearable rubber for long tire life, and circumferential and lateral tread grooves improve all-season traction. It is available in size 295/75R22/5, load range G. GOODYEAR TIRE & RUBBER CO. Quik-Link: (800) 687-1557, ext. 17163 www.mtdquiklink.com/17163
Yokohama 902L ultrawide-base tire Yokohama Tire Corp. says the 902L longhaul/regional ultra-wide-base drive tire delivers superior traction and high mileage. Its tread design makes a real difference in extreme driving conditions, such as in snow and ice. Available in size 445/50R22.5, the tire’s features include a 27/32 tread depth that creates higher traction while providing extra-long tread life. YOKOHAMA TIRE CORP. Quik-Link: (800) 687-1557, ext. 17164 www.mtdquiklink.com/17164
MTD June 2014
Quik-Link: 800-687-1557 ext. 17128
Counter intelligence
Reeling in tire sales You set the hook with value, not price
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here is no escaping, once you are in the with less value must also be done skillfully. Te tire business, you’re pursued by the tire lower-priced product must not be condemned as paparazzi. Neighbors, friends and family inferior, but only sold as a lower priced product. are constantly asking about tires; you are at a • Clearly verify. Before dropping the price or restaurant, the grocery store, watering your front ofering a lower-priced alternative, verify the yard, you can’t get away from it. customer’s needs as you make another atempt Sometimes, when I can’t spend as much time at selling a beter value product. Also, verify with them as I’d like, I refer these pesky people competitor pricing and your customer’s claims. to a well-done dealer’s website for reference. As you know, not all customers tell the truth However, they are usually relentless. Why? Be- By Wayne Williams exactly the same way. cause we have what they want: Personalized, • Verify your actual cost(s). “Low gross is beter professional service. than no gross,” as the old saying goes. Shaving margin My paparazzi think I know more about tires than is necessary in today’s Internet environment with I do. I certainly know enough, but it’s the personal emboldened consumers. Proft is proft only if you service and atention that seals the deal every time. collect it. I’ve always felt that at the end of a good I’m a value-added salesman, and when I’m approached sales-and-margin day, a litle extra GP helps the botom by my paparazzi, I know that price is important, but line; of course, the same is true on a poor sales day. I leave the price quote until last. I always start and Smaller proft dollars are still proft dollars. end with value. People approach me because they • Give a concession, gain a concession. Another famous are also looking for a deal, an insider deal; usually saying is, “Get the greenbacks, not the comebacks.” I they are looking for a good price on a good tire. understand the mind set; ofen a customer promises Add value to every sale! Add value at every point! to come back, but doesn’t. I like to gain a concession Open with value! Close with value! when I give a concession. When I give a price concession, ofen the customer feels somehow obligated to Value sets the hook! reward me. I take advantage of the moment to ask There is constant tension between customer the customer for future business. If you work in a orientation and proft orientation. Understanding store on a daily basis and you work this technique, your orientation and the customer’s orientation you’ll be surprised at the number of customers makes the question of “When to discount?” more who return and remind you. clear during the sales presentation. Because I am an added-value type person, I naturally use a valueAs sales professionals, we ofen feel beat up added sales approach. Tis works for me and my over pricing. In the next few months, I plan to paparazzi because it’s perceived as genuine, which reveal some pricing strategies that, when applied it is. I always atempt to frame the sales presentaconsistently and appropriately, will increase both tion in value. sales and margins. I frmly believe that a sales presentation framed Let me leave you with this. Last week my in value yields beter proft for the seller and beter neighbor (paparazzi), who drives an Audi value for the buyer. If the conversation is only Crossover with 21-inch tires, asked me about about the price of the product or about the other replacing her tires. She had heard they were guy’s price, sooner than later you’ll be making a “super expensive.” price concession. Giving in on price ofen seems I looked at her tires and assured her they were like defeat or loss, but there are options. When fne for now. By telling her not to worry, I set the value-added approach is not gaining traction the hook with my comment. I let her know of (pun intended), you have fallback options. several manufacturers that have her size tires on special all the time. You could see the tension • Ofer alternatives. I’m assuming that when you drain out of her face. Hook set! ■ are ofering a value-added product, it has a beter proft margin than a lower-priced item. So, if the Wayne Williams is president of ExSell Marconversation becomes all about price, you should keting Inc., a “counter intelligence” frm based ofer a lower-priced alternative. Tere is a skill in La Habra, Calif. He can be reached at to selling down. Ofering a product or service exsellmkting@gmail.com.
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European notebook
Too many tires and not enough sales Europe looks toward recovery from an uncertain period
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s we all know, the tire industry is a truly the door of European wholesalers as a whole global market with realistically just one and how they responded to it. end objective — to sell tires, as many It seems the “over-supply” problems were of them as possible whether it be in New York, most prominent in Germany, Italy and the UK. Cape Town or Rome! So when you consider that Germany and the UK Of course a great deal of tire production, are two of the most competitive tire markets in logistics and wholesaling takes place before those Europe (along with Te Netherlands) due to precious circular pieces of rubber reach their fnal their high amount of leading national equity destination on the retailer’s shelves. However, retail chains, it is not surprising that far too the fact remains that without actual sales taking By John Stone many tires were available in a clearly saturated place, there would simply be no tire market. sales environment. Here in Europe, the subject of tire sales is a hot topic of conversation right now as without any doubt it was a Online price comparisons tougher year in 2013 in terms of sales performance than However, in looking into this situation a litle deeper I in 2012 and 2011. In fact, the general opinion among have discovered that another important factor has to be the retailers and wholesalers is that sales were down by an growing presence of online tire price comparison websites estimated 20% last year. which has initiated several other contributory factors. None It’s true that most tire dealers in Europe are not publicly more so than tire dealers becoming even more savvy on listed, so data is not available for confrmation. But having prices and using this knowledge to negotiate extremely spoken to a number of market players, it seems this decline aggressively in their favor on discounted price terms. did indeed happen. Meanwhile, retailers have also sufered as “switchedLooking at the tire market’s performance across Europe on” customers are also using the comparison sites to their advantage by visiting a tire outlet on the premise of requesting prices then going away and purchasing online at a considerably cheaper price. At the moment it is estimated that around 6% of tire sales throughout Europe are carried out online and it is frmly believed by a number of infuential sources in the market that this percentage will continue to rise to as much as 22% by 2020. Looking at the above statistics it is hardly surprising that both retailers and wholesalers in Europe are fully aware they may have a tough fght ahead of them in the future if they want to maintain a healthy sales proft. So what about 2014? Well rather surprisingly, six months into the year and most players are optimistically reporting that they anticipate that the sales of premium and budget Due to market conditions and two really harsh winters, tire tires will rise slightly this year, but not by a great deal. warehouses in Europe have been overstocked until recently. Te crucial factor will be in the coming winter months in the past few years, I can see that between the closing when hopefully sales of winter tires will do well between months of 2011 right through to the frst quarter period September and December. of 2013, passenger car tire sales were reduced by around At Europe’s largest tire show — Reifen 2014 held in 15% (35 million tires) leading to a situation where stocks Germany at the end of May — the general feeling I received of both summer and winter tires reached an all-time high from wholesalers and retailers alike was a quiet confdence during 2012. that the market will slowly recover from a couple of difcult At the same time during this difcult period, Europe suf- years and this year so far looks encouraging. ■ fered from two really harsh winters, meaning there was a signifcant surplus of summer tires afer a prolonged John Stone has been working within the global tire industry winter season in some countries. for the last 20 years. In 2004 he launched his own company, It’s obvious that such drastic weather conditions Sapphire Media Services, as a business media consultant were partly responsible for this unfortunate situation. with clients around the globe. Stone also writes for tire and However, it must also be pointed out that quite clearly automotive-related publications in Europe, South Afica a reasonable percentage of the blame can be placed at and Asia.
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MTD June 2014
Focus on industry
New York, New York For Pirelli, the place to launch its Cinturato P1 Plus was perfect By Bob Ulrich hicago has Bridgestone. Detroit has Michelin. Los Angeles has Yokohama. And New York, as in the New York International Auto Show, has Pirelli. These tire brands are tied to the most prominent auto shows in the country. Pirelli Tire LLC recently exploited its association with the New York show by introducing the Cinturato P1 Plus among the vehicles on display at the Jacob Javits Center in New York City. Many of the premium vehicles sported Pirelli original equipment tires. Te new Cinturato P1 Plus is a premium ultra-high performance summer tire. “To play in this segment, you really have to have a well-performing tire,” says Riccardo Cichi, Pirelli’s senior vice president. What separates the P1 Plus from other replacement tires in the UHP summer tire category is the 35,000-mile limited tread wear warranty. Te 24-size range also takes staggered ftments into account, adds Cichi. In addition to its unique mileage warranty, the P1 Plus is more fuel efcient than Pirelli’s other UHP summer tires. It was designed as an environmentally friendly tire, with HAOF (highly aromatic oil free) compounds and fewer raw materials. And the tread patern is optimized to keep road noise to a minimum, even as the tire wears. Te P1 Plus is the replacement version of Pirelli’s fve-yearold P1 OE tire. Te replacement and OE tires share a tread patern but are designed for their respective markets. For example, the OE tire does not emphasize long tread wear. Key replacement ftments for the tire include the Acura RLX, TL and TSX; Buick LaCrosse and Regal; Ford Focus and Fusion; Lincoln MKZ; Mazda6 and RX-8; Nissan 350Z, Altima, Maxima, Sentra and Leaf; Subaru Impreza and Legacy; and Volvo C70.
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Te Plus strategy If Pirelli’s Plus concept sounds familiar, then its marketing strategy has been successful. Te P1 Plus is the third in a series of Pirelli tires that have visually identical replacement and OE counterparts. Te others are the Scorpion Verde All Season Plus and the P7 All Season Plus. Te P1 Plus is Pirelli’s frst tire introduction this year. Tere
Pirelli P1 Plus sizing The new Cinturato P1 Plus is available in 24 replacement sizes, ranging from 17 inches to 20 inches. All the 19- and 20-inch sizes are marked XL. 17-inch (eight sizes): 215/55R17 94V, 225/55R17 97Y, 215/50R17 95W, 225/50R17
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The Cinturato P1 Plus was prominently displayed at the 2014 New York International Auto Show. Pirelli is backing the tire with a 35,000-mile limited tread wear warranty.
will be more, according to Chairman and CEO Paolo Ferrari. “Two or three new product ‘stories’ each year keep the brand alive,” he says. Last year, Pirelli introduced three tires. Te new tire is manufactured in China, but that will change as Pirelli increases capacity at its consumer tire plant in Silao, Mexico. Ferrari says the plant will produce more than 5 million passenger and light truck tires in 2017, and eventually be able to produce 15 million tires annually. “We want to eventually move all our needs into Mexico.” Tat also will help with Pirelli’s fll rate. It takes the North American company seven days to export tires from Mexico to the United States, compared to 45 days from the Pirelli plant in Brazil and 90 days from plants in Europe and Asia. ■
98W, 225/45R17 91W, 235/45R17 97W, 245/45R17 95W and 245/40R17 91W. 18-inch (eight sizes): 225/45R18 95W, 245/45R18 100Y, 215/40R18 89W, 225/40R18 92W, 235/40R18 95W, 245/40R18 97Y, 255/35R18 94Y and 265/35R18 93Y. 19-inch (six sizes): 245/40R19 98W,
225/35R19 88W, 235/35R19 91Y, 245/35R19 93Y, 265/30R19 93Y and 275/30R19 96Y. 20-inch (two sizes): 245/35R20 95Y and 275/30R20 97Y. Pirelli Tire LLC considers 17-inch and above sizes to be “premium” sizes. They are becoming more popular. In contrast, 16-inch sizes are decreasing in number.
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Focus on industry
Wet traction versus tread wear Tere is no compromise in the Cooper CS5 Touring tires By Ann Neal
wears, the shape of the visual wear indicator changes to help consumers approximate ooper Tire & Rubber Co. has introremaining tread life. Te indicator also duced the CS5 Touring, a premium helps dealers begin conversations with touring tire line with two all-season customers on the condition of vehicle tread options. It also has four speed ratings, components, according to Sanborn. including the company’s frst-ever W rating “It’s not meant to replace an actual tread for a touring tire. Te CS5 is available in 78 depth gauge. But it does provide a sense sizes in Grand Touring (T-rated) and Ultra of what’s worn out from a component Touring (H-, V- and W- rated) tread options. standpoint. Tat’s a discussion the tire Te CS5 Grand Touring tire has an 80,000retailer can have with a consumer.” mile tread wear warranty. It is available in 30 Engineers incorporated Cooper’s Stasizes, which cover 75% of the market. biledge technology (introduced on the Speed ratings, tread wear, sizes and market mid-range CS3 touring tire) and 3D Microcoverage for the CS5 Ultra Touring are: Gauge Siping (an innovation developed for the Zeon RS3-A UHP tire) into the CS5. • H-rated — 60,000 miles in 23 sizes with Te Stabiledge technology is visible 74% coverage; in the tread, giving dealers something to • V-rated — 60,000 miles in 20 sizes with Cooper says its siping technol- physically show consumers when describing ogy improves wet and dry 78% coverage; and benefts. Under the weight and pressure of handling throughout the life • W-rated — 50,000 miles in fve sizes with of the CS5 Grand Touring (pic- driving, tire treads tend to close. However, 20% coverage. tiny Stabiledge “bumpers” keep the tread tured) and Ultra Touring tires. open for beter traction and response in Te company says a new silica tread comdry conditions. pound signifcantly improves the wet handling Cooper’s siping technology locks the performance of the CS5 tires versus the line it tread elements together to maximize surface replaces, the CS4. Te CS5 is the frst Cooper contact for beter handling and control. Te product to use the new compound, which sipes run the full-depth of the tire, rather contains four times more silica than the CS4’s than halfway or variable depths. compound. In addition to improving wet trac“Being full depth and locking together tion, the extra silica in the tread compound means we have 85% more sipes from halfshortens stopping distance and lowers rolling worn down to 2/32nds than traditional resistance without giving up tread wear. tires,” says Sanborn. “We targeted wet performance from the beChanges to the overall profle and tread ginning,” says Bruce Sanborn, product segment contact patch improve ride quality and manager. “It rains almost everywhere we sell help the tire wear evenly and quietly. Te products. So we need to be really good in the use of lighter and stronger materials in rain. Tat’s when consumers realize tires might construction reduced weight, which imnot stop in time. Tey lose grip more ofen. proves responsiveness and lowers rolling Almost everyone can relate to wet performance,” resistance. Te CS4 also had two tread paterns, but Te CS5 also adds a W-rated touring Cooper also used diferent compounds in the tire to Cooper’s line-up. “It’s a growing The CS5 Ultra Touring is H-, two CS5 lines, according to Sanborn. trend by OEs, so we just want to capture V- and W-rated. Cooper says “Te Grand Touring has a compound that is a new silica tread compound those sales,” says Sanborn, who cited Wtuned for the consumer set, such as the Dodge improves wet handling rated ftments on Ford Focus and Buick minivan customer,” says Sanborn. “Te Ultra performance of the CS5 line LaCrosse models as examples. Touring compound is tuned for, say, a Toyota versus the CS4 line. Te tires are produced at the company’s Camry V-rated, a litle more sporty, a litle more Tupelo, Miss., manufacturing plant and responsive. Te characteristics of the car and driver are dif- are available now. Te CS5 will be priced the same as the ferent so we have two unique compounds between the lines.” CS4, which has been the company’s best-selling tire line. “We To boost consumer confdence in the CS5, Cooper added a have cuting edge technology and leading performance all at tread wear indicator called “Wear Square” to the tire. As the tire the traditional Cooper brand price point,” says Sanborn. ■
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Quik-Link: 800-687-1557 ext. 17130
Focus on dealers
ITDG celebrates 20 years of growth ‘Band of Brothers’ continues on fast growth track By Greg Smith
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he group that calls itself the “Band of Brothers” has been on a fast track of growth since its inception 20 years ago. Te Independent Tire Dealers Group LLC (ITDG) celebrated its anniversary in Cancun last month. ITDG was founded by a handful of Southern California tire dealers in 1994 with an idea to combine purchases for greater buying power. Te group now has a presence in 37 states with more than 500 locations. It is targeting $200 million in purchases for 2014. “It all started when four or fve of us met with Mike Levit, who had this idea of creating a dealer buying group,” said Don Digby, owner of Ramona Tire & Service Centers. “My interest at the time was the same primary objective that our members have today — to protect the independents from the large chains by providing them with buying power and exclusive lines they could take to market.” Te other founding members of ITDG were Globe Tire & Automotive, Victoria Tire & Wheel, All Star Tire, Ram Tire Co., Te Tire Man and Grand Prix Performance Tires.
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ITDG CEO and President Mike Cox, left, recently played host to group members John and Karen Marshall in Cancun, Mexico. John Marshall is president of Grismer Tire Co. which is based in Dayton, Ohio.
During the celebration, some of the early members joked they would have been happy with $5 million in total purchases, but now are confdent that the group will continue to grow. “No way, no way ever did I think we’d reach this level,” joked Richard Howard, owner of Bruce’s Tire Inc., a six-store chain
Quik-Link: 800-687-1557 ext. 17131
MTD June 2014
based in the San Francisco area. “I never thought we’d take the group back East, but we added Mike Cox and it grew.” Lionel Pires, owner of Tulare Firestone Inc., said, “I was very skeptical when approached by ITDG a number of years ago, so I waited a year.” Pires now says, “We are very recognized by suppliers who know we are a strong group and will buy a lot of product.” “I’m looking for us to continue to grow so my son in college can own the business and become a third generation tire dealer,” says Robert Huebert, owner of Lee’s Service Inc. “We have become the pre-eminent buying group in the country,” says Chris Wyborny, chairman of ITDG and vice president of Ramona Tire, a 17-store chain based in Hemet, Calif. He believes the growth over the next few years is limitless due to the fexibility that the group’s programs provide its members. “We can ft with any manufacturer’s program that is out there for tire dealers. I believe that it will be more and more necessary for something like ITDG for independent tire dealers to survive,” Wyborny said. “It’s exciting (to be chairman) to see how the group has matured in the quality of dealers and their commitment to the group.” Wyborny is looking ahead to continued expansion of ITDG “because there are still states without members.” Michael Cox, CEO and president of ITDG, was hired to run the group 11 years ago, and the increases in buying programs have grown tremendously since that time. ITDG has buying arrangements with 13 tire suppliers as well as Chris Wyborny, ITDG chairman, is sources for wheels, lubrilooking for continued expansion cants, automotive parts into unrepresented states. and shop equipment. A major addition to the ITDG program was the 2004 launch of a captive insurance company that ofers workers’ compensation coverage for members. This program was followed by the launch in 2008 of a leasing company to ofer members fexible equipment fnancing. In 2011, ITDG signed a partnership with point S Development, a leading European group of independent tire and auto service dealers with 3,000 points of sale. Te two groups continue to explore areas of mutual beneft. ITDG does not have warehousing and distribution, but rather works with suppliers to ship smaller quantity orders to their dealer members, particularly those who do not buy container load quantities. During the last eight years, the group has had an average shareholder return of 4.31%. ITDG set records for new members, shareholders, member purchases and volume bonus and dividend payments in 2013. In March, ITDG extended Cox’s contract through Dec. 31, 2018. ■
www.moderntiredealer.com
Quik-Link: 800-687-1557 ext. 17132
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Focus on industry
Update on wheel weights Minnesota bans use of lead and mercury balance weights By the MTD staf
F
rom start to fnish, it took only a few months to get the ban on lead wheel weights approved in Minnesota. State Senate Bill SB 2192 was introduced in early March. Afer it passed through both the Senate and House of Representatives, it landed on Governor Mark Dayton’s desk. On May 16, he signed the bill into law. Te bill, which expressly prohibits the installation, sale and distribution of lead and mercury-based wheel weights in Minnesota, set a compliance date of Jan. 1, 2016. “Now that the Minnesota lead wheel weight law has been fnalized and signed by the governor, the market can begin to implement the change,” says Gregory Parker, marketing manager for Perfect Equipment wheel weights, a brand of Wegmann automotive USA Inc. “Te key to a successful transition is to test the available options and not rush into a specifc direction. Te state’s 19-month transition period should allow local businesses plenty of time to conduct their own product trials, compare products and suppliers and then decide which direction is right for their company.”
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Minnesota is the seventh state to enact a ban on lead wheel balance weights, joining California, Illinois, Maine, New York, Vermont and Washington. With Minnesota included, the lead regulated states will combine to make up roughly 26% of all registered vehicles in the United States, says Parker. Minnesota already has a state mandate in efect for state-owned feet vehicles to utilize only non-lead wheel balance weights. “It is important for the Minnesota market to understand that there are non-lead options like zinc and steel available to them now,” Parker says. “Sometimes new regulations can cause panic and confusion in the market as businesses scramble to make the change.” Te compliance date of Jan. 1, 2016, will allow businesses the chance to deplete their current lead inventories, test the alternatives and train staf on how to use the new non-lead products. Unlike some of the previous laws in efect, the new Minnesota law will also require that all lead and mercury wheel weights that are removed from vehicles be properly recycled and not allowed to enter the environment, Parker notes.
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MTD June 2014
States that now ban lead and mercury in wheel weights
Illustration courtesy of Perfect Equipment, a brand of WEGMANN automotive USA Inc.
States shown in red are states with a lead wheel weight law in place. Each law is for lead and/or mercury wheel weights only and no other materials are mentioned. States shown in blue are states that have previously proposed a lead and/or mercury wheel weight law but have not enacted a law. States shown in grey have no wheel weight laws in effect and have never had a proposal for a law.
“Most of the major wheel weight suppliers feature a recycle return program that allows you to return your unsorted used weights. “All modern wheel weight materials are recyclable and be-
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ing able to return the weights unsorted makes it easy for the customer,” says Parker. “Properly recycling your used inventories, regardless of their material type, is the right thing to do for the environment.” ■
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Focus on dealers
Growth through service Tis dealer took advantage of opportunities and grew his retail business by becoming his own wholesaler By Bob Bissler
S
am Batanian took advantage of a golden opportunity in 1987, and the CEO of King’s Tire & Wheel has done nothing but grow ever since. “I was working in a tire store and I had a falling-out with the owner — he didn’t really know very much. I ended up buying the place and that’s how it began.” Batanian started the one-store retail operation, located in El Monte, Calif., with a partner who he stayed with until 2000. Ten another opportunity presented itself. “I got into wholesale in 2002 when Winston Tire Co. went bankrupt. I was doing really well in retail and there was a Winston Tire up the street from me and the managers knew me. Since nobody was supplying them they kept coming to me and asking, ‘Can you give me four tires? I’ll pay you at the end of the week.’” Even though Batanian was taking a risk since Winston Tire was in bankruptcy, he supplied the store from his retail business. It would come back to help him in the future. “Tey started buying quite a bit and every week they sent me a check. And then they closed. Te managers who knew me went to work in other tire stores, and they kept calling me because they knew I helped them. It started creating a wholesale business in my retail.” As the wholesale business continued to grow, Batanian acquired a small warehouse in 2002. But it wasn’t enough. Ten he jumped on another opportunity. “Eight years ago my son said, ‘I want to run the retail store.’ Once he did that I decided to go into wholesale and open up a bigger warehouse. It just took of from there.” Tat year Batanian’s retail business brought in $600,000 in annual sales. In 2013 sales totaled $24 million for retail and wholesale combined. • Name: King’s Tire & Wheel “It’s been growing and • Annual sales volume: $24 million growing and we went • Monthly parts purchases: from one retail store $10,000 - $15,000 to three in the last two • Number of technicians: 12 total years. We’re planning between three stores on opening more retail • Number of bays and lifts: 20 lifts stores in the future and total; four bays in El Monte, fve also more wholesale disin Camarillo and four in Palmdale tribution centers.” • Tire inventory in stock: 40-50,000 In addition to the frst units total in three wholesale faretail store in El Monte, cilities Batanian opened a second in Palmdale in 2011
By the numbers
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King’s Tire & Wheel CEO Sam Batanian stocks between 40,000 and 50,000 tires in his 54,000-squarefoot warehouse in Rancho Cucamonga, Calif. King’s retail stores purchase tires in a consignment-type arrangement.
and another in Camarillo in 2012. Tey were both existing tire stores. He also has a wholesale warehouse in El Monte up the street from the retail store, another in Rancho Cucamonga and a small warehouse in Palmdale. All three retail locations ofer complete automotive service and Batanian says his stores specialize in tires, brakes and suspensions. Major brands carried at King’s are Continental, Pirelli,
MTD June 2014
Hankook, Kumho, GT Radial, Cooper, Mickey Tompson, Nexen and Sumitomo. King’s Tire is a member of the Independent Tire Dealers Group (ITDG) and purchases about $10 million annually in parts and tires. Batanian says his annual tire purchases are between $18 million and $20 million. Each of the retail stores has about $20,000 in parts inventories. He spends $200,000 annually on parts. In addition, King’s Tire and Wheel is a Gold distributor for Continental Tire the Americas LLC, a FasTrack distributor for Pirelli Tire North America Inc., Te One distributor for Hankook Tire America Corp., a Kumho Premium Fuel distributor for Kumho Tire U.S.A. Inc. and a distributor for Mickey Tompson Performance Tires & Wheels.
Model of success Batanian says he employs the old-fashioned business model of taking care of customers and providing great service. Te strategy is paying of. “At our retail store in El Monte, we have 80% to 90% repeat business.” Batanian says that service and a large selection of brands is what keeps King’s growing in its market. He says he atracts and retains great employees by treating them like family and making the workplace a happy environment. In 2013 Batanian hired Net Driven, a provider of websites and Internet marketing solutions, to upgrade his website, www.kingstireandwheel.com. In 2013 he also began working with CustomerLink Systems Inc. to promote King’s Tire through direct mail. His goal is to keep existing customers while bringing in new ones. “We have three generations coming
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back to our stores. We’re newer to Palmdale and Camarillo, but our name has a good reputation. We’re planning to add more retail stores because we already have the wholesale; all we have to do is be our own supplier. We’ve looked at a couple of places to give a good geographical coverage. We’re always looking for opportunities. Geographically I want to have about 20 to 30 miles between each store so we will have a good coverage of Southern California.”
A big vision “I’m envisioning doubling my business in the next fve years. I think we have the opportunity because we have the right customers. Even if we just take care of them more we will achieve it very easily.” Batanian says a major issue he sees currently is the infux of some low-quality imported tires in the U.S.
‘We’re planning to add more retail stores because we already have the wholesale; all we have to do is be our own supplier.’ However, he realizes that many of his customers are on tight budgets and can’t aford to purchase name brand tires. “Some customers can’t afford to pay twice as much. Tey don’t want to pay it. If the gap was closer, within 15% to 25%, then a lot of people would be able to say, ‘I would spend $100 more to have a beter warranty, a longer-lasting, safer tire.’” He says he stocks some imports to cover all income levels. Batanian’s best-selling brands are Continental, Pirelli and Hankook for his main lines. “You have to explain to the customer the value of the tire they’re buying. Tat’s our business, that’s what we do with our customers. We make sure they understand that. You have to sell the beter tire to the customer — you’ll make more money and they’ll be happier.” ■
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TPMS
Determine the system on a BMW 3-Series E-90 One type monitors pressure with sensors, one checks for fats through the ABS SUBJECT VEHICLE: 2009-13 BMW 3-Series E90 RELEARN PROCEDURE? Yes, see reset procedures. SPECIAL TOOLS NEEDED? No.
Tere are two types of tire pressure monitoring systems (TPMS) on 2009-13 BMW 3-Series E90 vehicles. Te Flat Tire Monitor (FTM) system uses the ABS to measure each tire’s rolling radius changes and with it, the rotational speed of the wheels. Changes are detected and signaled as a fat tire. Te FTM system does not use tire pressure sensors in the tires. Te Tire Pressure Monitor (TPM) system uses tire pressure sensors installed in the tires to check the tire infation pressure in the four mounted tires. Te system indicates if the tire infation pressure has dropped considerably in one or several tires.
Tire pressure monitor warning light FTM: If a signifcant drop in tire pressure is detected, the TPMS warning lamps light up yellow and red, display a warning message on the iDrive Control Display, and sound an acoustic warning signal. If a system malfunction occurs, the TMPS warning lamps light up yellow and a message is displayed. TPM: When a fat tire is detected, the TPMS warning lamps light up yellow and red, a message appears on the iDrive Control Display, and signal sounds. If a system malfunction occurs, the yellow warning light fashes and then lights up continuously. The tires are shown in gray on the Control Display and a message is displayed. CAUTION: Te system is inactive and cannot display a fat tire if a wheel has been mounted without TPM electronics or if TPM experiences temporary interference from other systems or devices that use
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the same radio frequency. Status display on iDrive Control Display: Te tire and system status is indicated by the color of the tires. TPM takes the fact that the tire pressure changes during driving into account. A correction is only required if the color of the TPM display indicates that it is necessary.
• Green: Te tire pressure matches the learned set state. “Status: TPM active” is displayed on the Control Display. • One wheel is yellow: Tere is a fat tire or a major drop in infation pressure in the indicated tire. A message appears on the Control Display. • All wheels are yellow: Tere is a fat tire or a major drop in infation pressure in several tires. A message appears on the Control Display. • Gray: Te system cannot detect a fat tire. Reasons for this can include: TPM is being reset; temporary interference due to systems or devices that use the same radio frequency; and system malfunction.
Reset procedures When the tire pressure warning light illuminates and a warning message ap-
pears, immediately check air pressure of all tires and adjust to the specifed pressure. Reset TMPS. Ensure warning indicators go out. NOTE: If a tire pressure has been adjusted, or a wheel or tire has been replaced, the TPM or FTM system must be reinitialized. See appropriate tire pressure monitor system under reset procedures.
TPMS reinitialization FTM: NOTE: Te reseting process fnishes during driving, which can be interrupted at any time. When driving resumes, reseting is continued automatically. Without iDrive 1. Set the tire pressure of all wheels to specifcation and start the engine. 2. Lightly push buton 1 in the turn indicator lever up or down repeatedly until the corresponding symbol appears in the display accompanied by the word “RESET” (see Figure 1). 3. Press buton 2 to confrm your choice of the Flat Tire Monitor (see Figure 1). 4. Press buton 2 for approximately fve seconds, until the reading shown in Figure 2 is displayed.
Figure 1: Identifying FTM Reset Display (without iDrive – 1 of 2).
MTD June 2014
Figure 2: Identifying FTM Reset Display (without iDrive – 2 of 2).
5. Drive vehicle. Initialization is automatically completed during the drive, with no additional feedback. With iDrive 1. Set pressure of wheels to specifcation. 2. On iDrive Control Center, select “Vehicle Info,” then “Vehicle Status.” 3. Select “RESET.” The initialization menu appears (see Figure 3). 4. Start the engine, but don’t drive. 5. Start the initialization with “RESET.” 6. Drive vehicle. The initialization is completed during driving (see Figure 4).
TPM: CAUTION: Te system is inactive and cannot display a fat tire if a wheel has been mounted without TPM electronics or if TPM experiences temporary interference from other systems or devices that use the same radio frequency. NOTE: Te reset process fnishes during driving, which can be interrupted at any time. When driving resumes, reseting is continued automatically.
Without iDrive 1. Set the tire pressure of all wheels to specifcation. 2. Start engine. 3. Lightly push buton 1 in the turn indicator lever up or down repeatedly until the corresponding symbol appears in the display accompanied by the word “RESET.” 4. Press buton 2 to confrm your choice of the tire pressure monitor. 5. Press buton 2 for approximately fve seconds. 6. Drive vehicle. Initialization is automatically completed during the drive. Te indicator lamp goes out afer the system reset is completed.
5. Select “RESET” (see Figure 3). 6. Drive vehicle. Te tires are shown in gray and “Reseting TPM...” is displayed. NOTE: If there is a problem reseting and applying the tire infation pressures, all tires are shown in yellow on the Control Display, and a message is displayed. 7. Afer a few minutes of driving, the set tire infation pressures in the tires are applied as the set values to be monitored. Te reseting process is completed automatically while driving. When the reseting is completed, the tires in the display turn to green and “TPM Active” is displayed.
Demounting/mounting procedures CAUTION: Te tire should be demounted from the wheel using the tire changer manufacturer’s instructions. Use the following information to avoid damage during the demounting/mounting procedures. Te only way to know from the outside, whether a wheel contains an electronic sensor, is by the metal valve stem. System initialization is the only way to determine
With iDrive 1. Set the tire pressure of all wheels to specifcation. 2. On iDrive Control Center, select “SETTINGS,” then “TPM.” 3. Select “Reset TPM.” 4. Start the engine, but don’t drive.
Figure 3: Identifying FTM/TPM Reset Display (with iDrive).
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Figure 4: Identifying Flat Tire Monitor (FTM) Reset Completed Display (with iDrive).
whether the correct sensor has been used. An incorrect sensor will not be registered and a fault will be recorded in the diagnostic system.
Tire pressure sensor removal
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1. Raise the vehicle on a suitable support. Remove the tire/wheel assembly from vehicle. 2. Demount the tire from the wheel following the tire changer manufacturer’s instructions while paying special atention to the following to avoid damaging tire pressure sensor: • To prevent the pressing-of horn from damaging sensor, do not rest pressingof horn on both rim sides in the area of the valve. • The valve should be approximately 15 centimeters to the right of the assembly head (to prevent tire iron from damaging sensor). • Tire bead must not press onto sensor.
Tire pressure sensor installation 1. Mount tire to wheel following tire changer manufacturer’s instructions while paying special atention to the following
to avoid damaging tire pressure sensor:
• When the sensor is installed, the rim must not be cleaned with high-pressure cleaning equipment. • Visually inspect sensor for external damage and check for tight ft. Do not retighten screw and union nut. If one of the valve parts is loose, replace the entire valve. • Keep the sensor free of tire mounting paste. • Fit the lower tire bead so that no pressure forces are exerted on the sensor. • Fit the upper tire bead so that no pressure forces are exerted on the sensor. 2. Install the tire/wheel assembly on the vehicle. Reinitialize the TPMS. See reset procedures. ■
Information for this column comes fom Mitchell 1’s “Tire Pressure Monitoring Systems Guide” for domestic and import vehicles through 2013. Headquartered in Poway, Calif., Mitchell 1 has provided quality repair information solutions to the automotive industry for more than 80 years. Visit www.mitchell1.com.
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MTD June 2014
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Products Bartec Mitsubishi Assisted Relearn Bartec USA LLC now offers the Mitsubishi Assisted Relearn to install new TPMS sensors on the Mitsubishi Lancer, Outlander and the new Mirage. Purchase the Mitsubishi Assisted Relearn adapter kit and download R51 from the Bartec Tool website, then update any Bartec Tech400+, Tech400SD or Tech500. Bartec says the Mitsubishi Assisted Relearn process provides full diagnostic capability in addition to completing the proper relearn. BARTEC USA LLC Quik-Link: (800) 687-1557, ext. 17170 www.mtdquiklink.com/17170
Gaither Winntec Smart Tire Cart Gaither Tool Co. Inc. says the Winntec Smart Tire Cart (P/N G471147HD) holds 15-inch and higher passenger tires up to truck size 245/70R19.5 and can move mounted tires and wheel sets and stacks of tires eight to 10 high. The Smart Tire Cart stacks tires closer together than other carts for more storage space, notes Gaither. A patented tilting action relieves stress for the user, and the new push/pull system pushes the tires out of the Smart Cart arms. GAITHER TOOL CO. INC. Quik-Link: (800) 687-1557, ext. 17171 www.mtdquiklink.com/17171
Coats ProGuard Plus Leverless tire changer Hennessy Industries Inc. says the ProGuard Plus Leverless tire changer is an advanced version of Coats’ current ProGuard tire changer and features a pneumatic wheel clamping system. A dual-bead roller system makes the unit match-mount-capable and increases changing speed and capability while semi-automatic top roller indexing allows for faster bead dislodgement. An auxiliary bead depressor assist tool locks into the tower assembly to help keep the bead in the drop center. HENNESSY INDUSTRIES INC. Quik-Link: (800) 687-1557, ext. 17172 www.mtdquiklink.com/17172
Goodyear Assurance All-Season The Goodyear Tire & Rubber Co. says the new Goodyear Assurance All-Season is a practical tire for consumers who want all-season traction and long tread life. It’s also a great value and an easy sell thanks to its competitive price and 65,000-mile tread
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life limited warranty. With sizes to cover 84% of the commuter/touring segment, the Assurance All-Season is “a must-have tire in your winning Assurance family lineup,” says the company. For more information, visit toolkit.goodyear.com/MTD. GOODYEAR TIRE & RUBBER CO. Quik-Link: (800) 687-1557, ext. 17173 www.mtdquiklink.com/17173
Sumitomo performance touring line TBC Wholesale Group says the Sumitomo HTR Enhance line for sedans, coupes, crossovers and SUVs is engineered to perfectly align with both the sophisticated performance capabilities of later-model vehicles. Featuring 60 T-, H-, V- and W-rated sizes in 15- through 18-inch rim diameters, the HTR Enhance offers an optimum blend of extended tread life, agile and responsive handling, all-season traction capability and refned ride comfort, notes TBC. TBC WHOLESALE GROUP Quik-Link: (800) 687-1557, ext. 17174 www.mtdquiklink.com/17174
Tireco expands Milestar line Tireco Inc. has added the MS597 Steelpro professional series to its Milestar brand. The MS597 is designed for heavy-duty commercial light truck applications. The company says the MS597 excels in carrying intensive loads and resisting cuts, punctures and tears. The tire’s features include circumferential traction ribs and stiff, solid shoulders with gripping edges to deliver traction and biting grip on both tough and soft terrains. Reinforced sidewalls provide a high maximum load capacity while also combating wear damage. It is available in 16-inch rim diameters. TIRECO INC. Quik-Link: (800) 687-1557, ext. 17175 www.mtdquiklink.com/17175
TirewebLocal reviews tire dealers TirewebLocal is a Web directory that helps tire dealers create and manage their Web presence across 250 online directories, review websites, search engines and mapping services. TirewebLocal also monitors online reviews and discussions about tire dealers. TirewebLocal scans thousands of websites daily and notifes dealers of reviews about their business, so they can respond appropriately. TirewebLocal is a monthly subscription-based service. TIREWEB MARKETING Quik-Link: (800) 687-1557, ext. 17176 www.mtdquiklink.com/17176
MTD June 2014
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Instant information direct from MTD advertisers
To request free product information by phone, call 800-687-1557, enter the extension number listed below, and you will be immediately transferred to the company you want to talk with — it takes only seconds. To request information online, log on to www. mtdquiklink.com/ plus the corresponding Quik-Link number. You’re just a click away from receiving free information on the new products that interest you. Advertiser 31 Incorporated ADVICS North America Inc. Afac Aftermarket Auto Parts Alliance Inc. Akebono Brakes American Omni Trading Company Arnott Inc. Bartec USA BKT Tires USA Inc. Continental Gold Retailer Program Continental Tire, Commercial Vehicle Tires Cooper Tire Dealer Strategic Planning Inc. Double Coin Tires Falken Tire Gabriel Ride Control Gaither Tool Company Inc. Hankook Tire America Corporation Hercules Tires Horizon Tire Inc. Horizon Tire Inc. Hunter Engineering Company Independent Tire Dealers Group Kenda Tires Kumho Tire USA Inc. MaddenCo Inc. Marangoni Tread North America Inc. Maxxis International—USA Monroe Shocks & Struts Nexen Tire America Inc. Nitto Tire U.S.A. Inc. Omni United USA Raybestos Brakes Reliable Int’l Exhibition Services Co. Ltd. SEMA Show Sentury Tire Americas Trelleborg Wheel Systems Americas Inc. Tub O’ Towels VDO TPMS Replacement Parts Wagner ThermoQuiet Yokohama Tire Corporation ZC Rubber America Inc.
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Your turn
Ofer customer service from start to end Dear Editor: I liked the article by Wayne Williams in the January issue on “Avoiding certain sales atitudes.” One thing that has worked for me, and many others, is having an organized plan. Start of with your friendly greeting, make the customer comfortable, then at the same time analyze the needs of that customer. Give the customer the foor whenever they want it. While that customer is talking, think about showing them why your suggestions will beneft them. Ten have your approach set up in your mind concerning how you are going to support or prove why your recommendations will be benefcial. Do this without losing any patience and you will be in an excellent position to close the sale. Leting the customer spew their issues and problems to you is of utmost importance. I believe Wayne’s article can help dealers make a lot of sales. Te biggest problem for most salespeople is they think all of this would be a waste of time. In other words, most of the folks out there don’t want to go the extra mile. Customer service from start to end will keep you and your family eating. Good article! Craig Walter, Owner Don’s Auto Ade Warrenville, Ill.
transaction not be taxed. I view it as a collection issue, since state law in my state states that the sales tax (or use tax) is to be paid when fling one’s state personal income tax return if you are the end user of the commodity. Of course, no one does that, and there’s no enforcement follow-up to collect the use taxes. It’s also unfair to give such an advantage to one channel of distribution (in our case 9%) for absolutely no good reason other than political willingness. 2. Yes, they should be charged. Brick and mortar businesses should not be disadvantaged because they invested in the state and provide other taxes and jobs. 3. No — we are overtaxed already! 4. Consumers should only be charged sales tax for purchases if the company they are buying from has a nexus in their state. For example, we sell on the Internet. If a customer from our state or a state we have a location in buys tires, we are currently beholden to charge them sales tax. I think that is fair. 5. Yes. It is not fair to dealers who have brick and mortar shops if they don’t pay taxes when purchasing on the Internet. 6. I feel states charge too much tax now. It would be a nightmare to try and control state sales tax from out-of-state businesses. 7. While you might not know it from looking solely at South Carolina’s sales tax statute, the issue of whether to require online retailers to collect sales tax in states where they have no physical presence has been a mater of signifcant debate in many states and at the federal level. However, at this time South Carolina has not enacted any law that would require out-of-state retailers to collect sales tax from South Carolina customers.
NAC: What’s on your mind? We also asked our NAC what was on their mind. Here are a couple of their responses. Te auto dealers need to sell and fx cars and let the independent tire store sell tires. Tony Batle, Owner Batlefeld Tire Swansboro, N.C.
Question of the month Each month we ask members of our National Advisory Council (NAC) a question on a current hot topic. Tis month, we asked if consumers should be charged sales tax on Internet purchases of tires and automotive parts. Tey responded with: 1. Tey should. It is totally unfair to mandate the collection of sales taxes on purchases made in local businesses, which invest in the economic well-being of a community, and not mandate that those same items purchased through an Internet
If we fail to fnd a way to instill a sense of personal responsibility in our nation, then our nation will fail. We’ve allowed our government to grow to unchecked levels, entitlements to skyrocket and our politicians to become corrupt and selfserving. Tere’s a lack of critical report ability and an absence of any long-term solutions, or thoughtfulness, to our current problems. It’s a hell of a way to run a country. Charley Gowland, Manager/Owner Chabill’s Tire Service LLC Morgan City, La.
Join Modern Tire Dealer’s National Advisory Council Each month, Modern Tire Dealer is guided and infuenced by a select group of readers — members of our National Advisory Council. Tese members’ opinions are the heart of the monthly Your Marketplace column, compiled by industry analyst Nick Mitchell. If you’d like to join this prestigious group, please let us know. We’d love to hear from you. Contact Editor Bob Ulrich at Bob.Ulrich@bobit.com or call (330) 899-2200, ext. 11.
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