Modern Tire Dealer - May 2016

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THE INDUSTRY’S LEADING PUBLICATION

THE INDUSTRY’S LEADING PUBLICATION

SPECIAL TRAILER TIRES A crowded marketplace lowers prices in 2016

On the Rise Recognizing young leaders in our industry

Sell more green tires Join the movement, because they aren’t going away

How 2 dealers use e-media to attract customers Bull’s-eye on your back How to avoid invasive government fines

New battery technologies power sales opportunities May 2016 | Vol. 97, No. 5 | $10 | A Bobit Publication | www.moderntiredealer.com

Quik-Link: 800-687-1557 ext. 16101

Features 20 Sell more green tires Get ahead now, because these tires aren’t going away

Te Industry’s Leading Publication May 2016, Volume 97, Number 5

Departments

28 Tarifs on passenger tires lead to lower prices for special trailer tires

4 Editorial On the Rise: As we pay tribute to Gen Y, we build a community

6 Online News and navigation tools for MTD ’s website

8 News/views Chinese imports didn’t depress truck tire prices

18 Your marketplace Despite a slight decrease, demand shows signs of continued growth

44 Counter intelligence Leading up the hill or off the cliff: Make your employees see the light or feel the heat

46 European notebook Tire labeling update: Increased surveillance should fx a loophole

50 Business insight Bull’s-eye on your back: How to avoid invasive government fnes

52 Focus on industry Triangle celebrates 40 years and begins building its brand in the U.S. Plus an MTD exclusive: Triangle’s Ding on globalization, products, IPO and tariffs

56 Focus on industry

36 New batery technologies power sales opportunities for dealers

Pure Gold (dealers): Continental shares new tires and segments with its Elite

58 Focus on industry Fun, fun, fun: BFG Advantage T/A Sport puts FUN into the everyday drive

60 Focus on dealers Gateway to the future: Tire wholesaler holds grand opening for warehouse expansion

42 Using e-media to atract customers Two tire dealers show both new and old methods work Thank you to Mighty Tire Wholesale Inc. in Canton, Ohio, for its help with the cover photography.

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Editorial

On the Rise As we pay tribute to Gen Y, we build a community

M

illennials in the workplace are ofen Our On the Rise program has its own page on the but of jokes for their cultural www.moderntiredealer.com. Just click on “More” characteristics, either true or imagin the menu bar at the top of the page, then “On ined. Supposedly they are all “entitled” with a the Rise” in the drop box. Finally, fll out the form weak work ethic. And they still live at home, and hit “Submit” by July 1. even into their 30s, surrounded by the trophies We will highlight the associates who are “On they received for participation. the Rise,” ofcially bringing them together as a Tese are stereotypes, of course, but even Jason community, in our November 2016 issue. Until Dorsey, a best-selling author and a millennial then, we will highlight some of the younger himself, says a sense of entitlement and impatience By Bob Ulrich generation for their outstanding accomplish(“We are notorious for not being able to wait in ments, leadership qualities, business success and line!”) are two defning characteristics of the generation, marketing skills every month. also referred to as Gen Y. To date, we have received dozens of responses from people He also says many mil- like Brian Finkelstein, who at 27 fnds himself vice president lennials are hard working of sales for Max Finkelstein Inc. in Astoria, N.Y. With 13 and reliable as well. Tose distribution centers covering 13 states, Max Finkelstein are the workers and the is one of the largest tire wholesalers in the United States. young leaders we want Don’t let his last name fool you. He started at the botom to recognize. So begins of his family-owned company in high school. our On the Rise program, “My frst job in the industry was working in hot, sticky which is open to anyone distribution centers during the summer, helping our team in the automotive indus- load trucks, unload trailers and pull tires,” he says. “Tis try, ages 20 to 39. taught me to appreciate things and built a foundation from Anyone born between which to learn about our business.”

1977 and 1995 are milWhile atending college, he called on dealers between lennials, according to classes. I don’t get the sense he feels entitled.

Dorsey, chief strategy “Trough this framework, I discovered a passion to officer and millennials carry the torch and felt a (sense) of loyalty to our family, researcher at the Center employees, vendors and customers.” for Generational KinetMax Finkelstein has opened four distribution centers ics. (The U.S. Census in the last two years.

Bureau defnes “As my network has expanded, there are still the same them as amount of hours in a day and days in a week,” he says. And the challenges don’t stop there.

“Having a healthy work-life balance is equally challengBrian Finkelstein has helped his ing, but extremely important as well. While it’s good to be family-owned aggressive, not everything gets done overnight.” business open Brian and his brothers represent the fourth generation four distribution in the business, but there are other millennials at Max centers in two years, including Finkelstein who also are responsible for keeping the the Fairfeld, 97-year-old business moving forward.

N.J., location.

My favorite joke about millennials is they live with their parents for what seems like a millennium, or 1,000 years.

All kidding aside, the livelihoods of today’s independent being born between 1982 and 2000, but we set the mini- tire dealers and their suppliers depend on the work, talent, mum age at 20.) and technical intuition of the next generation.

If you are under 40 and have infuenced or contributed We want to make sure they are recognized for their to the health of our industry in North America, let us know. developing talent in our industry. Why Gen Y? Because Blue collar? White collar? Tire dealer? Supplier? Engineer? they deserve it. ■ Technician? Manager? Salesperson? Marketing guru? If you are making a name for yourself, send us your name!

If you have any questions or comments, please email me And here is how to do it. at bob.ulrich@bobit.com.

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MTD May 2016

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moderntiredealer.com DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER

Home offce

Website top news Along with coverage on the possibility of truck tire tarifs (see the News/views article on page 8), news concerning Meineke Car Care Centers LLC rolling out a new program — in partnership with Pep Express, the commercial division of Pep Boys - Manny, Moe & Jack — to help Meineke franchisees boost their tire business was the most read on our website over the last month. The Meineke TreadSmart Tire Program is designed to increase franchisee engagement and competency in the tire business, and help drive incremental profts and facilitate the sale of adjacent service oferings around the wheel, the two companies say. It was designed by Pep Express to mirror the benefts and fnancial advantages of major tire manufacturer loyalty programs. The program ofers a broad base of “good, better, best” branded and private label oferings. See: http://www.moderntiredealer.com/news/711802/ pep-boys-is-helping-meineke-franchisees-sell-more-tires

3515 Massillon Rd., Suite 350 Uniontown, OH 44685 (330) 899-2200, fax (330) 899-2209 Website: www.moderntiredealer.com

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Editorial Editor: Robert J. Ulrich, ext. 11 Bob.Ulrich@bobit.com Managing Editor: Lori L. Mavrigian, ext. 16 Lori.Mavrigian@bobit.com Senior Editor: Joy Kopcha, ext. 15 Joy.Kopcha@bobit.com Associate Editor: Ann Neal, ext. 18 Ann.Neal@bobit.com

Production Art Director: Neal Weingart, ext. 14 Neal.Weingart@bobit.com Production Manager: Karen Runion, ext. 10 Karen.Runion@bobit.com

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South and Texas: Greg Smith Greg.Smith@bobit.com (330) 899-2200, ext. 12 Midwest: Michele Vargo Michele.Vargo@bobit.com (330) 899-2200, ext.17 West Coast: Marianne Dyal /Te Dyal Company Marianne.Dyal@bobit.com (760) 451-9216 Automotive Aftermarket: Dan Tornton djtinc@gmail.com (734) 676-9135, mobile (313) 410-0945 Classifed Sales: Donna Stewart Donna_Stewart@cox.net (405) 260-1678, fax (405) 260-1684 Reprint Sales: Karen Runion Karen.Runion@bobit.com (330) 899-2200, ext. 10

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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 May 2016

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News/views

Who’s to blame?

Chinese imports didn’t depress U.S. truck tire prices Data provided to the International Trade Commission (ITC) shows imported truck and bus tires from China undersold comparable domestic products in 55 of 56 quarterly comparisons. At the same time, the underselling didn’t force a drop in U.S. tire prices.

The disconnect in prices is revealed in a 154-page explanation of the ITC’s vote to continue its preliminary investigation of imported truck and bus tires from China. The U.S. Department of Commerce is conducting its own investigation of whether imported tires from China should be subject to countervailing and anti-dumping tariffs.

Four domestic truck tire producers — Bridgestone Americas Tire Operations LLC, Continental Tire the Americas LLC, Goodyear Tire & Rubber Co., and Michelin North America Inc. — and 21 importers provided pricing data for four products.

11R22.5, 16 ply rating, load range H, speed rating L 11R24.5, 16 ply rating, load range H, speed rating L 295/75R22.5, 14 ply rating, load range G, speed rating L 285/75R24.5, 14 ply rating, load range G, speed rating L “The data show that subject imports undersold the domestic like product in 55 of 56 quarterly comparisons. Virtually all of the subject imported tires for which prices were reported undersold domestic industry prices.

“The data also indicate that the underselling margins of subject imports were high, ranging from 13.7% to 67%, and that these underselling margins increased steadily over the course of the period of investigation. This underselling enabled subject imports to gain market share at the expense of the domestic industry during the period of investigation. We fnd this underselling to be signifcant for purposes of our preliminary determinations.”

But in the next paragraph, the ITC says the prices of those imported tires didn’t depress the prices of U.S. products “to a signifcant degree.”

“The pricing data indicate that both prices for the domestic like product and subject imports declined over the period of investigation. From 2013 to 2015, declines in prices for the domestic like product of the four pricing products ranged from 10.9% to 13.5% for aftermarket sales, and from 8.2% to 12.3% for OE sales.

“Subject import price declines for aftermarket sales ranged from 30.6% to 36.3%.”

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The commission notes the price drops coincided with a drop in raw material prices, and at this point, the ITC isn’t able to determine whether the domestic price declines are due to imports, or other factors.

At the same time, the ITC said it couldn’t determine that imported truck and bus tires prevented domestic tire manufacturers from increasing prices.

“The domestic industry’s unit costs declined, as did its ratio of cost of goods sold to net sales. Thus, the domestic industry did not have an incentive to raise its prices due to increasing costs. Further, even though apparent consumption increased, the record in these preliminary investigations does not show any unsuccessful attempts by the domestic industry to raise its prices.”

Two ITC members saw no indication the domestic industry was being harmed or threatened by imports from China, but they were in the minority.

They based their dissension on four factors, two of which come down to money: “the lack of signifcant price-depressing or suppressing effects, and the high and increasing proftability of the domestic industry throughout the period of investigation.”

As to the latter, the commissioners wrote, “The domestic industry’s performance improved in almost every category for which information was collected over the period of investigation.”

Capacity utilization increased by almost 10 % from 2013 to 2015. Domestic and export shipments were higher, and net sales were up, too. The number of

Te price drops coincided with a drop in raw material prices. production workers, their hours worked and their wages paid, all rose.

And, “the domestic industry’s fnancial performance improved in every metric.” The industry “had high and rising profts” throughout the period of investigation.

“The industry’s highest levels of production, capacity utilization, employment and profts occurred in 2015, as subject import volume and market share peaked.” — Joy Kopcha

MTD May 2016

Quik-Link: 800-687-1557 ext. 16104

News/views

bites

Sullivan Tire adds store Sullivan Tire Co. is opening a 7,500-square-foot store in Somerville, Mass. It is Sullivan Tire’s 82nd location.

Big O Tires expands TBC Corp.’s Big O Tires LLC subsidiary has added locations in Winnemucca, Nev., and El Cajon, Calif.

Cooper promotes safety Cooper Tire and Rubber Co. is promoting driver and tire safety among teens and young adults ages 15 to 25 through its new “Tread Wisely” program.

Kumho offers spring rebate Kumho Tire USA Inc. is offering a spring rebate of up to $80 through June 30, 2016, for purchases of four eligible tires.

Falken says ‘Grip the Moment’ Sumitomo Rubber North America Inc.’s Falken brand has a new marketing campaign called Grip the Moment that features professional athletes in adventure-driven sports.

Mam and BizNet partner Mam Software Inc. is partnering with BizNet Software Inc. to give users access to Microsoft Excel spreadsheets to aggregate data in real time and create up-to-theminute reports.

Plaza Tire expands Plaza Tire Service Inc. has opened a store in Warrenton, Mo. The Cape Girardeau, Mo.-based company has 57 stores.

Accella plants trees As of Earth Day 2016, Accella Corp.’s Accella Tire Fill Systems has planted nearly 125,000 trees on behalf of its customers as part of its “One Tote, One Tree” green initiative.

Caterpillar honors Alliance Caterpillar Inc. presented the Alliance Tire Group with a fourthquarter 2015 Business Continuity Planning award in recognition of the company’s perfect performance in supplying Galaxy Beefy Baby tires to Caterpillar’s Sanford, N.C., plant.

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Tire Factory’s new CEO outlines three paths to growth Walter Lybeck sees plenty of growth potential for Tire Factory Inc. And after a couple weeks as the cooperative’s permanent CEO, he outlined his strategy to pursue that growth during an interview with Modern Tire Dealer.

Lybeck is passionate about independent businesses of all kinds. When he was an auditor at Deloitte, he managed a small team and enacted “pick a dive Friday.” Every week the team would visit an independent establishment, and it had to feel like it was independent. It gave him a glimpse into business strategies of every variety. “It’s amazing what people do when their livelihoods are on the line.”

He sees that same passion in Tire Factory’s dealers and wants to expand the cooperative’s reach as members rebrand their stores to Point S Tire and Auto Service.

“There are all sorts of different ways to do it. The challenge is bridging those gaps,” Lybeck says. He sees it as three objectives.

Internal growth: “I always have internal growth as a goal for myself. If I’m not growing internally, if I’m not capturing lost sales within my network, there’s no point in growing.” Lybeck says that means Tire Factory needs to provide excellent service to its stores, and one key to that service is competitive pricing.

External growth, part 1: Seek partnerships with other independent Walter Lybeck, CEO of Tire Factory, speaks to dealer groups, especially dealers during the cooperative’s annual meeting in February 2016. He was named CEO April 4, 2016. smaller groups, around the country, and “use those as launching points for adding additional stores.” Existing groups would already have a warehouse in place and a network of stores, and it would help Tire Factory expand into the eastern U.S. “We have several conversations going. I would love to land one of those this year.”

External growth, part 2: Grow from west to east. Based in Portland, Ore., Tire Factory’s stronghold has always been in the western U.S. “We don’t have enough members in Colorado. We are just entering North Dakota, South Dakota. We could use more. The whole middle of the country, those are the next natural spots.” Moving south into California, Phoenix, Ariz., and Las Vegas, Nev., are also targets that would require a bigger distribution system. Tire Factory currently operates from warehouses in Portland, Ore.; Salt Lake City, Utah; and Denver, Colo.

Any growth is predicated on a good balance sheet, says Lybeck, who served as Tire Factory’s chief fnancial offcer from 2010 to August 2015 before he took over as interim CEO. He says the group’s balance sheet is “very good.”

“We don’t want to leverage ourselves to risk,” Lybeck says. “If you’re not planning for the unexpected fnancially, you can be surprised, and we don’t want to fnd ourselves surprised.” — Joy Kopcha

MTD May 2016

Quik-Link: 800-687-1557 ext. 16105

News/views

bites

STTC buys Bronx dealership Service Tire Truck Centers Inc. (STTC) has acquired Tire Supply Solutions LLC in Bronx, N.Y. Bridgestone supports athletes Bridgestone Americas Inc. is sponsoring six Olympic medal hopefuls, captained by four-time gold medalist Michael Johnson.

Kumho wins award Kumho Tire Co. has received the 2016 Red Dot Design Award in the product design category for its K-Silent Tire and Road Venture MT51 tires.

MCSN expands into Canada Michelin North America Inc. is expanding the Michelin Commercial Service Network (MCSN) into Canada.

Atturo sponsors TORC Atturo Tire Corp. is returning to The Off-Road Championship (TORC) with a commitment to Pro Light racing, which will be known as Atturo Tires Pro Light in 2016.

Hankook chooses Nashville Hankook Tire America Corp. is moving its North American headquarters to Nashville, Tenn.

The company is relocating its headquarters from Wayne, N.J. Gates is honored Gates Corp. received the NAPA Excellence in Quality award at the 2016 National Automotive Parts Association (NAPA) Vendor Summit in Atlanta, Ga. Lewis General Tires converts Craig Lewis, president of familyowned Lewis General Tires Inc. of Rochester, N.Y., says casing quality was a key reason for converting to Goodyear’s retread system.

The company retreads nearly 40 Goodyear truck tires per day.

Nexen ranks fourth Nexen Tire Corp. credits its fourth place ranking out of 12 tire brands in the passenger car segment of the 2016 J.D. Power Original Equipment Tire Customer Satisfaction Study to improved results in the tire wear portion of the survey.

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Tate Boys Tire & Service has a new CEO Tate Boys Tire & Service LLC has named Martin (Marty) Schoenthaler as a new partner and CEO. Schoenthaler was vice president and chief information offcer at Archer Daniels Midland Co. (ADM), an agricultural processing frm. At Tate Boys he’ll be charged with helping lead the tire dealership’s growth as it looks to expand.

Schoenthaler brings a depth of business Marty Schoenthaler has experience that will be a perfect complejoined the Tate family at Tate ment to the industry expertise of the Tate Boys Tire & Service as the company’s new CEO. Boys leadership team, according to Craig Tate, president. “The addition of his business acumen enhances our ability to enrich the customer experience.”

Chuck Tate is the company’s chief operating offcer.

“I am excited about the opportunity to join Tate Boys,” Schoenthaler says. “Craig and Chuck have developed a great company focused on delivering an exceptional customer experience.”

Tate Boys opened its doors in 1988 and operates fve locations in the Tulsa, Okla., area.

Alliance brand will live on after Yokohama acquisition Alliance Tire Group (ATG) will preserve “its brand, its culture, and its customer relationship strategy,” as well as its management team, following the planned July 1 acquisition by Yokohama Rubber Co. Ltd. Yokohama announced in March that it was acquiring Alliance from investment frm KKR in a deal of more than $1.1 billion.

The acquisition will allow Yokohama to enter into markets for farm and forestry tires. But what does the deal mean to independent tire dealers who sell Alliance tires? Modern Tire Dealer asked Alliance to answer that question. Here is the company’s reply: “We strongly believe that this strategic partnership will enhance our collective ability to supply our world-class products to more customers internationally. Yokohama believes that ATG’s business and focus ft perfectly with its ongoing expansion, which should translate to more innovations and opportunities for our customers — they respect ATG’s strength, especially in its growth, proftability and brand in the offhighway tire segment.

“Following the transaction’s close, ATG will continue to be led by its existing management team, including founder Yogesh Mahansaria.

ATG will also be able to leverage Yokohama’s resources, research and development, global supply chain network, marketing capabilities, and production expertise to better serve customers across industries and geographies.

“As an independent business unit with minimal product overlap with Yokohama’s portfolio, ATG will retain its brand, its culture and its customer relationship strategy. We don’t anticipate that there will be any major impact to the way customers order or receive their products.”

MTD May 2016

News/views

bites

Midas’ sales program begins TBC Corp.’s Midas International Corp. subsidiary introduced a tire sales initiative in April in the Philadelphia market. The program will expand across North America in 2016 and 2017.

Omni sponsors golf pro Omni United (S) Pte. Ltd. has signed Ladies Professional Golf Association (LPGA) golfer Jodi Ewart Shadoff as brand ambassador for Radar Tires, its flagship brand.

Network adds members New Automotive Distribution Network members Direct Automotive Distributing of Spokane, Wash., and Parts Direct Warehouse LLC of Crystal Lake, Ill,, will operate under the Auto Pride brand.

Tire Pros and MLB partner The Tire Pros division of American Tire Distributors Inc. is partnering with the New York Yankees and Texas Rangers Major League Baseball (MLB) teams for the 2016 season.

BKT builds its brand Balkrishna Industries Ltd. (BKT) continued to build its brand internationally through sponsorship of the Monster Jam World Finals in Las Vegas, Nev., in March.

Pirelli to expand in Mexico Pirelli Tire North America Inc. plans to invest $200 million to expand its existing tire production facility in Silao, Mexico, and build a second tire plant in Silao.

Marangoni has new retread Marangoni Tread North America Inc. has introduced its first widebase precured splice-less retread for concrete mixers that run 425/65R22.5 and 445/65R22.5 tires.

Titan opens recycling facility Titan Tire Reclamation Corp.

(TTRC), a subsidiary of Titan International Inc., has opened its first facility designed to recycle giant scrap mining tires. The facility in Fort McMurray, Canada, transforms mining tires into oil, steel and carbon black.

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50 years and counting for specialty tire distributor Specialty tire wholesale distributor Commercial Tire Sales of Fresno, Calif., held a customer appreciation day and trade show on April 7, 2016, to celebrate 50 years in business.

More than 220 customers gathered at the company’s warehouse in Fresno to enjoy entertainment, prizes, and product discounts and specials at the trade show sponsored by manufacturers.

Commercial Tire Sales has a 90,000-square-foot warehouse in Fresno.

In May, the company is opening a 30,000-square-foot warehouse in Fontana, which will provide wholesale deliveries for customers in Southern California and Western Arizona. The company also offers delivery services for Northern California and the Central Coast.

Commercial Tire Sales is a corporation owned by a farming family co-op. The co-op began with the purchase of Corcoran Tire, a retail store in Corcoran, Calif., in 1965. Commercial Tire Sales in Fresno, which was a retail outlet, was purchased in 1975.

By the late 1980s, the business had evolved into a wholesale distribution warehouse, and the retail stores were closed.

Commercial Tire Sales moved into its current A vendor trade show was part of the customer warehouse in 2003. appreciation day event celebrating Commercial In 2008, the company Tire Sales’ 50th anniversary on April 7. purchased Central Cal Tire from Schoettler Tire. Today, Corcoran Tire & Recapping Inc.goes to market as Commercial Tire Sales. Verdo Gregory is the managing partner, and Russ Roberts is the general manager.

Continental’s BestDrive buys Brahler’s Truckers Supply BestDrive LLC, a wholly-owned subsidiary of Continental Tire the Americas LLC, has purchased the seven service locations, including a retread shop, of Brahler’s Truckers Supply Inc. The deal, which includes locations in Illinois and eastern Missouri, closed Feb. 1, 2016.

Founded more than 40 years ago, Brahler’s has been a commercial tire and retreading company that offers alignments, new tire sales, industrial tires, and tire management programs.

The Brahler’s locations will remain under the guidance of Richard Brahler, according to Continental. “I am very excited to be part of the BestDrive family,” says Brahler. “As a solution provider for many years it made perfect sense to join forces after seeing the new products and technologies Continental is bringing to the our customers.”

Glen Carson, director of retail for commercial tires at Continental the Americas, says the acquisition “puts BestDrive in a great position to better serve the Midwest region as we continue to expand both our locations and our services.”

MTD May 2016

News/views

dates

May 24-27 Reifen International Trade Fair, Essen, Germany www.reifen-messe.de May 29-June 4 Rubber Manufacturers Association National Tire Safety Week (202) 682-4800 www.rma.org June 24-25 Alabama Tire Dealers Association Annual Convention, Peridido Beach Resort, Orange Beach, Ala. (256) 616-3587 www.alatiredealers.com July 12-14 Latin American & Caribbean Tyre Expo, ATLAPA Convention Center, Panama City, Panama (786) 293-5186 www.latintyreexpo.com July 15-17 Georgia Tire Dealers & Retreaders Association Annual Conference, The Westin Jekyll Island, Jekyll Island, Ga. (770) 947-2323 www.gtdra.com September 13-17 Automechanika Frankfurt, Frankfurt am Main, Frankfurt, Germany www.messefrankfurt.com September 26-28 China International Tire Expo 2016, Shanghai World Expo Exhibition & Convention Center, Shanghai, China +86(0) 10-8589-8181 www.citexpo.com.cn November 1-4 Automotive Aftermarket Industry Week including AAPEX, the SEMA Show and TIA’s Global Tire Expo, Las Vegas, Nev. (800) 876-8372 www.tireindustry.org

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In 1942, 42 M Monroe aided the U.S. World War II effort by focusing its efforts on military production. (Insert) The Monroe Super 500 series heavy-duty shocks for automotive applications were sold in the 1960s and ‘70s.

Monroe joins the Century Club This year Monroe Shocks and Struts is celebrating an extremely rare feat for a company — turning 100 years old.

August Meyer founded Monroe in 1916 in Monroe, Mich. It eventually became Monroe Auto Equipment Co. and manufactured tire pumps for early automobiles. Meyer added a partner, a local Dodge motorcar dealer Charles McIntyre, and in 1926 they introduced the frst Monroe “Shock Eliminator,” which replaced carriage springs on many passenger vehicles.

Tenneco Inc. purchased the company in 1977 and has overseen the development of several Monroe innovations for passenger vehicles, trucks, buses and other applications. The company introduced the automotive service industry’s frst gas-charged replacement shock absorbers, Monroe Gas-Matic shocks, in 1982; Monroe Refex shocks and struts in 1999; Monroe QuickStrut complete replacement strut assemblies in 2003; and Monroe OESpectrum shocks and struts in 2011.

Present day, this 25-foot-long, 12-foot-high glowThe brand’s 100th in-the-dark “Shockmobile” is used by Tenneco to anniversary celebration promote the Monroe brand and the importance is themed “Made for of replacing worn shock absorbers and struts. the Road Ahead” and focuses on the future as well as its history. Jeff Koviak, vice president and general manager, North America Aftermarket, Tenneco, says, “It’s part of our corporate culture to always look for the next opportunity to enhance vehicle stability and performance. That’s how our founders helped create the ride control category in the early 1900s and it will be key to our next century of success.” ■

MTD May 2016

Quik-Link: 800-687-1557 ext. 16106

Your marketplace

Despite a slight decrease, demand shows signs of continued growth

A

ccording to the results of our latest was higher than February as 50% of the truck tire survey, demand for replacement tires dealers we spoke with see business staying about decreased slightly in March. Indeed, the same and 50% saw business improving. Te from a volume standpoint the dealers reported table highlights the outlook the respondents have they sold 0.1% fewer tires in March on a year-overconveyed to us in recent months. year basis, following a 0.9% increase in January and February. Te lack of a harsh winter has been Volume trends moderate a headwind to demand trends this year and has As stated, the dealers in our survey reported provided a tough comparison from the winter of they sold 0.1% fewer tires last month on a year2014/2015, but March is the frst month this year By Nick Mitchell over-year basis, following a 0.9% increase in both the negative was not completely ofset by a strong January and February. Trends remained positive demand caused by lower unemployment and lower fuel in the truck category as the dealers who responded to the prices. While March’s results were slightly negative, one survey reported volumes were up 0.9% afer being fat in month does not make a trend, and until we see a sustained February and registering a 4.1% increase in January. Lastly, decline in the results of our survey, we will continue to the survey respondents indicated volumes were up 1.5% believe that the industry will show growth. In light of the in the retread business afer being down 3.5% in February. recent strength in demand trends, we continue to believe that the abundance of pent-up demand should lead to Dealer costs decline decent volume growth throughout 2016, despite the fact Survey respondents noted manufacturer pricing on that 2015 provides tough comparisons. In fact, demand value tires decreased 0.3% during March, while the price has increased on a year-over-year basis for 23 of the past of branded tires also decreased 0.3%. Tese reports are 25 months, according to the dealers surveyed. Tat said, in line with what we heard about prices declining during the respondents to our survey are split on demand trends our trip to Las Vegas for the Specialty Equipment Market over the next three months of this year. Until next time, Association (SEMA) Show, and this trend is consistent keep the tires rolling out the door. with commentary from around the country that pricing has remained fat or declined despite the implementation of tarifs on Chinese import tires. Although we will keep an eye on this metric, February’s phenomenon of a steep decline can largely be atributed to lower raw material Dealers NOV DEC JAN FEB(R) APR(P) APR(15) prices as well (e.g., lower oil prices).

Passenger tire

How dealers view near-term business

Will improve Will worsen Will stay level

66% 0% 44%

17% 0% 83%

25% 0% 75%

67% 0% 33%

50% 0% 50%

80% 0% 20%

Truck tire Will improve Will worsen Will stay level

57% 0% 43%

43% 0% 57%

50% 25% 25%

50% 17% 33%

50% 0% 50%

20% 20% 60%

R-Revised

P-Preliminary

Dealers think inventories are in line Of the dealers who responded to the survey for March, 25% noted inventories were too high, and the other 75% noted they had the appropriate amount of inventory in stock for demand (vs. 33% in February), while none noted inventories were too low. Truck tire dealers reported similar results as 75% of those surveyed indicated they had the appropriate amount of inventory and 25% indicated inventory was too high.

Monthly survey A number of independent tire dealers were surveyed concerning current business trends. Except for tire prices and costs, the results of the March 2016 survey are compared with those of March 2015.

Dealers appear confdent in market conditions According to the survey results, 50% of passenger tire dealers believe business will improve and 50% think business will stay about level, which seems to be an early indication of slight pessimism beginning to brew among industry participants. Te outlook for truck tire demand

18

Repair sales declined in March Dealers indicated automotive repair sales trends began to moderate in March. Specifcally, the dealers who responded to the survey said service sales, which accounted for 9% of total revenues, were down 1% on a year-over-year basis in March (compared to increases of 2.3% in February and 9.5% in January). â–

Nick Mitchell is senior vice president, research, for Northcoast Research Holdings LLC based in Cleveland, Ohio. Mitchell covers a variety of subsectors of the automotive industry.

MTD May 2016

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feature

Sell more green tires Get ahead now, because these tires aren’t going away

By Joy Kopcha

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Pirelli offers products with a strong focus on green performance for SUVs, CUVs and light trucks, as well as sedans. This Scorpion Verde Plus is an all-season tire geared toward vehicles like the Cadillac SRX.

hen looking for ways to diferentiate your tire business from the competition, you tell yourself everything is on the table. Does that include green tires?

“Green tire technology is another way to take the tire industry, which is ofen considered to be just a commodity industry, to a professional industry that provides real value and beneft for the consumer,” says Mike Leverington, general manager for Aeolus Tire America. “For the independent tire dealer, green tire technology can be a segment of products to promote that will help to diferentiate one retailer from another.”

Tat’s advice from a man who has nothing to gain by his suggestion.

Aeolus isn’t importing any passenger tires, green ones included, into the U.S. due to the tarifs imposed on passenger tires made in China.

“From my own feld experience a majority of retail counter salesmen do not put a lot of emphasis on low rolling resistance green tire technology,” says Leverington. “Te reason given is that consumers are not yet coming in and asking for the most fuel efcient tire for their car. Tey still are evaluating mileage, cost value.

“In my opinion, the independent tire dealer is one of the key components in accelerating the retail sales trend for the new fuel efcient green tire technology, which includes reducing carbon dioxide impact to the quality of our air and environment.

“Yes, it takes more selling efort, but most retailers need to overcome their comfort zone of selling products with only the least resistance. If the retailer does not believe in the technology and that it can make a diference, it is going to be difcult for that retailer to be part of the growing trend long term.”

Stacy Lindsey, original equipment product manager for Michelin North America Inc., acknowledges it’s not an easy sell.

“Rolling resistance alone is a tough concept to sell in the replacement market. It’s difcult to measure and quantify by an individual consumer, so the claims of savings are ofen met with skepticism,” Lindsey says. “Rolling resistance is an integral part of the overall value proposition for the customer. If they can get the tangible performances they value most, like long life, quiet ride, good handling, and save fuel at the same time, the value to the consumer is even more atractive.

“Tat is the path that Michelin takes. Sustainable mobility is delivering the performances that our customers demand while minimizing our impact on the environment.”

Brandon Stotsenburg, director of business development for American Kenda Rubber Industrial Co. Ltd., says dealers need to determine the “primary performance factors for the customer and vehicle based on the driver’s concerns. If there is a tire which meets the primary needs and also provides secondary benefts for fuel economy, it should be ofered to assist closing the sale.”

Even though there are fewer customers focusing on fuel efciency while buying tires, Stotsenburg says dealers need to be ready for those who do make it a priority. Ofer them the tires and expected fuel savings and benefts they’re looking for to support the sale.

For Pirelli, talking to those environmental-minded customers means “being vocal about our green performance initiatives within our marketing plan is a plus overall,” says Stefania Masciullo, director

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Green tires of research and development for Pirelli Tire North America Inc. And even though gas prices have risen steadily since mid-February, prices remain relatively low. But Brad Robison, product manager for Bridgestone Americas Tire Operations LLC, says that doesn’t mean consumers don’t want to save money.

“Although fuel prices have fallen, Americans still like to save at the pump,” Robison says. When the tire maker commissioned a consumer poll in March 2015, 94% of Americans were looking for ways to stretch their dollars, and 74% of drivers made changes to their driving habits and performed vehicle maintenance in an The Ecopia EP422 Plus is engineered Kenda says it is beginning to engage efort to increase gas mileage. with auto manufacturers to understand Andrew Briggs, senior director with a combination of light and strong materials, which helps give their specifc needs, and to determine of tire business planning, product consumers an extra 20 miles per tank how products like the Vezda Eco can earn planning and sales operations at of gas, Bridgestone says.

OE ftments in the future.

Yokohama Tire Corp., says gas prices aside, “a small segment still really cares about being experience is the frst priority when we develop a new generation environmentally responsible.” of product and begin custom tuning it for our OE partners.”

Briggs also notes there’s an easy green message to share with Continental Tire the Americas LLC says the working every consumer. “Reminding the consumer of maintaining relationship with OEMs is important “to understand the proper air pressure is the best way to be ‘green’ with the tires expected contribution of the tire to achieve their target mpg, you have now.” and have a common understanding of how this target could potentially impact other tire performance characteristics.”

How to get to 54.5 mpg Briggs, from Yokohama, says, “We work with each of our Even if consumers are slow to accept the green tire anthem OE partners on a case-by-case basis to generate the required in the afermarket, original equipment manufacturers are performance, in all areas, for a specifc vehicle.” embracing it.

Bridgestone pushes its development of more fuel efcient Auto manufacturers are under the gun to improve the fuel tires too, but Robison says the company also works with OEMs efciency of their vehicles. As a result there’s more pressure to consider run-fat tires. “By equipping vehicles with run-fat on tire manufacturers to do their part in the fnal decade of tires, manufacturers can omit the spare tire. Tis reduces the development before the new Corporate Average Fuel Economy weight of the car, contributing to improved fuel economy.”

(CAFE) standards go into efect.

Achieving 54.5 mpg by 2025 will require a continued focus Diferent styles with the same goal on improving rolling resistance. Lindsey from Michelin says, Just as improving fuel efciency has come as a result of “Te general rule of thumb is that it takes a 10% improvement varied approaches, tire companies ofer a range of responses in tire rolling resistance to improve mpg by 1%. when describing the advancement that has resulted in their “The tires contribute about 20% to the overall rolling biggest improvement. resistance of a vehicle, so one out of every fve tanks of fuel Continental says there hasn’t been one key development, goes directly to overcoming just the tires’ inertia. As a result, but “a combination of measures in the tires in order to reduce each new generation of vehicle pushes the limit of low roll- material deformation and damping.” ing resistance technology in parallel with other automotive Kenda’s Stotsenburg says drivers are “a combination of silica technologies to reach the 2025 CAFE targets,” Lindsey says. compound improvements combined with weight reductions “I do not think you can overstate the impact the CAFE rules due to improved tire construction.” are having on automotive design.

At Pirelli, Masciullo says, “Te design of the tires with new “Tires are one of the most cost efcient investments an OEM materials delivers the most important beneft: rolling resistance can make to improve fuel economy, so we are an important reduction. Compound and reinforcement materials are able partner in helping achieve their targets,” says Lindsey. “It’s to reduce the hysteresis of a tire, the energy absorbed by the bolt-on performance that the OEM can specify and spread tire during the rolling phase. Te new generation of materials out investment cost. Te continuous challenge is to meet the also helps to reduce overall tire weight, which maintains or OEM’s need to reach their CAFE targets while maintaining improves all the other performance aspects.” or improving the performance that consumers value most, Briggs at Yokohama says the company also has “pioneered like wear, traction and comfort. For Michelin, the consumer’s research into aerodynamics of the tire for efciency.”

22

MTD May 2016

efciency. We have been able to maintain premium all-season performance and deliver greater fuel efciency in our tires due in part to Bridgestone’s proprietary NanoPro-Tech compound.”

Goodyear Tire & Rubber Co. says its fuel-efcient advancements encompass four broad categories: “materials, design, construction and tire manufacturing.”

A long-term goal Fuel efficiency is the big driver for green tires, but it’s not the only factor. Finding Earth-friendly alternatives to petroleum’s synthetic rubber are considerations, too. Tire manufacturers say lower costs Demand for specialized green tires remains relatively low, says Briggs of Yokohama. for traditional raw materials “We believe that other characteristics will continue to drive purchase decisions, providhaven’t slowed their work to ed that attributes like rolling resistance meet segment specifc levels of acceptability.” develop alternatives, though For Bridgestone-brand tires, the focus has been to improve Stotsenburg, from Kenda, admits the return on that investment efciency without compromising other qualities, Robison says. takes longer to recover when raw materials prices are lower.

“Troughout the industry earlier generations of fuel efcient Still, he says green tire innovation is a long-term investment. tires required some trade-ofs in order to achieve enhanced fuel “Raw material pricing is short term, while green tire develop-

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23

ACDelco Gears Up for the Next 100 Years A

s ACDelco turns 100 this year, its automotive aftermarket parts and related services business are among the best known and respected in the industry.

Over the past 100 years, the ACDelco portfolio has grown to more than 90,000 parts and 37 product lines. In addition to service and maintenance items such as batteries, brakes, spark plugs and flters, ACDelco is focused on bringing more high-tech parts to the independent aftermarket, as well as the right tools and training to deliver exceptional customer experiences.

That’s because the same vision that led to ACDelco’s creation in 1916 — that great parts and great service are inseparable — is embedded in the brand today. ACDelco’s expertise is among the certainties that will keep the brand at the forefront of innovations in the automotive aftermarket for the next 100 years.

Humble Beginnings and Visionary Leaders The early 20th century saw monumental innovation, particularly in the young, prospering automotive industry.

A constant stream of new products, forward-thinking

designs and great ingenuity converged to build the foundation for the vehicles we drive today.

While the automotive industry and General Motors were still in their infancy, William Durant, who founded GM, correctly predicted the importance of vehicle service to the growing ranks of automobile owners. He realized all of the vehicle brands he brought under the GM umbrella would require replacement parts, and he decided it would be more efcient to create a single company to handle those needs.

In 1916, he established United Motors Corporation — the company that would eventually become ACDelco — to bring a dream team of premium aftermarket brands under one roof.

ADVERTORIAL

Durant’s new holding company combined several parts manufacturers — including Hyatt Roller Bearing Company (antifriction roller bearings), New Departure Manufacturing Company (ball bearings), Remy Electric Company (electrical starting, lighting, and ignition equipment), Dayton Engineering Laboratories Company, known as DELCO (electrical equipment), and the Penman Rim Corporation.

Durant appointed Alfred Sloan, who had been president of Hyatt, as president of United Motors. Sloan subsequently led the acquisitions of Harrison Radiator and Klaxon Horn, and organized United Motors Service to sell and service the entire line of products nationwide.

Helping America Hit the Road When President Dwight D. Eisenhower approved the construction of a national U.S. interstate highway system in 1956, Americans began to enjoy the freedom of the open road more than ever before. As the country’s car care needs grew, so did the national network of United Motors Service locations.

Making its Mark By 1974, GM merged its AC Spark Plug Division with United Delco to form AC-Delco. AC-Delco was a household name with a reputable image, making its mark on the automotive aftermarket parts and service business.

Taking Flight As the company grew, so did its customer trust and innovation. In 1927, AC Spark Plugs were used to power Charles Lindbergh’s frst fight across the Atlantic Ocean.

And in 1934, the brand began selling the industry’s frst manual turn signals for trucks, which helped to increase vehicle safety on the increasingly crowded roads of the time.

During World War II, the company’s factories were converted to provide parts for many of the planes, tanks and vehicles used by the U.S. military.

Shooting for the Moon AC Spark Plug and Delco Electronics teams worked to help develop components for early NASA Apollo mission rockets as well as components of the lunar rover that helped man land on and explore the moon.

Racing into the Future In the 1980s and 1990s, AC-Delco became very involved in motorsports, sponsoring races and drivers in NASCAR, IHRA (International Hot Rod Association) and NHRA (National Hot Rod Association).

Some of racing’s most successful names wore AC-Delco on their backs during their races — Dale Earnhardt Jr., Kurt Johnson, Steve Park, Kevin Harvick, Harold Martin, Ken Schrader and Ron Hornaday, to name a few.

The Next 100 Years From humble origins, ACDelco has grown into a global brand. Technicians around the world count on ACDelco every day to deliver true original equipment quality backed by a 100-year track record of success.

As the company looks ahead to the next 100 years, advanced powertrains, telematics and autonomous driving will dramatically reshape the aftermarket in the future.

This reinforces the importance of the unique technical leadership and training only ACDelco and GM can deliver.

While many things change, some things remain the same. Even in a future world of drones and self-driving cars, innovation still starts with the original.

William Durant and Albert Champion had the vision to know that the automotive service industry would need a complete solution of trusted genuine parts and superior technician training. They would be amazed to see how their early investment in our industry has grown and evolved today.

Visit ACDelco.com or use the #ACDelco 100 hashtag on social media to join our celebration of the past, present and future.

ADVERTORIAL

Green tires is the latest product in the tire maker’s fuel efcient line. Backed by a 70,000-mile tread wear limited warranty, the EP422 plus is available in 43 sizes to ft rim diameters from 15 inches to 18 inches. It’s designed to ft coupes, sedans and wagons, and also fts some minivans.

Continental CrossContact LX20: Designed for light trucks, SUVs and CUVs, this is an all-season tire designed to provide long wear and enhanced fuel efciency. It fts rims from 16 to 20 inches and includes EcoPlus technology, with polymers and silane that work at the microscopic level to improve tread wear, wet braking and fuel Goodyear estimates its Assurance Fuel Continental features a fuel savings efciency.

Max tires for cars, minivans and utility calculator on its website to help convehicles saves up to 2,600 miles worth sumers see the savings in all of its tires Goodyear Assurance Fuel Max: of gas over the life of a set of tires. with EcoPlus technology.

Goodyear says the Assurance Fuel Max for cars and minivans, and the ment is a longer term issue. Kenda is continuing to increase our Assurance CS Fuel Max for SUVs and CUVs, ofers consumers spend on new material and compound development globally, all-season traction with fuel savings. A wet tread zone with and in our new technical center in Green, Ohio.” dual grooves provides wet traction, while a dry zone enhances Masciullo from Pirelli echoes the notion that development handling and grip. must go on, regardless of what happens with commodity Kenda Vezda Eco KR30: Designed for premium, high prices. By next year the tire maker says green tires will make performance cars, the Vezda Eco’s tread compound is infused up almost half of the company’s tire sales revenue globally. with a silica that reduces carbon dioxide emissions and rolling “For OEM products, we always aim to be in line with each resistance. It comes in 35 sizes from 15 inches to 19 inches manufacturer’s specifc expectations. In developing pure with H and V speed ratings, and 40 to 65 series. replacement product we have been moving toward greater fuel Pirelli Scorpion Verde Plus: Te tire features an optimized economy as well, as it meets an important need for consumers footprint and polymer and silica compound for balanced who are becoming increasingly aware of the reduced fnancial wear, and is made of a mix of materials to lower the weight and environmental impact of improved fuel economy. and the rolling resistance. A pitch sequence lowers noise, “By 2017 the share of tire revenues from green performance and longitudinal grooves and lateral siping remove water for tires — those tires with improved environmental perfor- stability and beter handling in all weather conditions. ■ mance — will account for 48% of Pirelli’s worldwide sales.”

Survey says consumers want fuel effcient vehicles

All segments are in play Te push to develop more fuel-efcient tires covers every segment of the industry.

Continental says “alternative fuel and self-driving vehicles are challenging the industry to develop ultra low rolling resistance tires, while maintaining other performance atributes.” Stotsenburg from Kenda sees a big future for “CUV, SUV and light truck (tires) as drivers, with a primary focus on the fast growing CUV segment.”

Tat may be the focus for the future, but already tire makers are creating a broad range of tires with green technology.

Here’s a roundup of the latest products from the manufacturers who responded to our query for information.

Bridgestone Ecopia EP422 Plus: Tis

26

The Consumer Federation of America (CFA) says consumers support Corporate Average Fuel Economy (CAFE) standards, and they’re not backing down despite fuel prices that remain relatively low. In a survey conducted for the CFA, 81% of respondents support the federal standards, and 52% express strong support.

At the same time, of the 1,094 vehicles from model year 2016, 56.1% earned an Environmental Protection Agency (EPA) fuel economy rating of at least 23 mpg.

EPA ratings are the mileage figures presented on a car’s window sticker.

The CFA says gas guzzlers, those vehicles with fuel economy at 16 mpg or lower, dropped to 4% in 2016. Ten years ago, those vehicles represented almost one-third of 2006 model year vehicles.

“Over the past several years, rising standards have helped create a much more effcient U.S. auto feet while preserving consumer choice on size, weight and performance,” the CFA said in its April 2016 fuel economy report. “The fact that the number of cars achieving more than 23 mpg has risen by 43% in the last 10 years is strong evidence that reaching a goal of 40 mpg by 2025 is attainable.” (The 40 mpg goal relates to the EPA fuel economy ratings, which are based on track tests and other realworld methods to predict a vehicle’s mileage. The more frequently cited 54.5 mpg for CAFE standards stems from laboratory testing. CFA estimates the 40 mpg EPA rating is equivalent to the 54.5 mpg CAFE standard.)

MTD May 2016

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feature

Tarifs on passenger tires lead to lower prices for special trailer tires

By Ann Neal

P

rices of special trailer (ST) tires are down by as much as 30% versus last year, an indirect outcome of U.S. tarifs on passenger tires from China.

“Pricing is considerably lower than a year ago from all of our suppliers,” says Tom Van Ormer, director of purchasing for East Bay Tire Co., a wholesaler, exporter and commercial dealer with 12 commercial outlets in California, Arizona and Hawaii.

“In some cases it is 30% lower and this is applicable with all grades of product: premium and the of-brand alike. Tey have all gone down considerably, and more of-brand products have entered the market as well.”

Te experts Modern Tire Dealer consulted for this article agree that Chinese manufacturers who cannot ship passenger tires into the U.S. competitively entered the trailer tire market. Teir presence has increased supply and pushed prices downward.

“Pricing on ST tires is lower this year than last. A lot of this can be atributed to the oversupply that is coming out of China,” says Randy Tsai, director of marketing and GBC Motorsports for Greenball Corp.

“As a result of the antidumping duties on PCR/LTR tires, there has been a change from the Chinese manufacturing base to include ST radial in their lineup, which they are aggressively pricing low,” says Tsai.

Carlstar Group LLC also reports pricing pressure. “Te passenger car/ light truck duties restricted the products that Chinese producers could supply to the U.S. We saw a focus of open capacity into the U.S. from multiple players,” says Kent Allen, marketing director of the Franklin, Tenn.-based manufacturer of specialty and commercial tires.

Doug Addis, territory sales manager for Maxxis International, says his company also sees the downward trajectory in the prices of ST tires.

“Pricing for China-produced ST Kenda has released a new line of radial has come down. Tat’s a product the trailer tires, the KR35.

28

China tire manufacturers can still ship into the U.S. without the tarif. Apparently they have all jumped on the ST bandwagon.”

Lower ST tire prices are not universal, however.

“Pricing for mid-to-upper tier ST radial product has remained fairly consistent,” says Addis.

Greenball’s Tsai notes that decreased manufacturing costs of radial tires over the past several years have closed the signifcant price gap between bias and radial construction tires. “Recently

MTD May 2016

The trailer is equipped with premium Carlisle Radial Trail HD tires. More powerful tow vehicles and larger and heavier trailers for luxury travel, cargo, and other uses are increasing demand for ST tires with more load-carrying capacity.

we’ve seen radial ST tires come down to the same if not lower price than older bias tires.”

Prepare for a shif in sizes One year ago, MTD reported a trend toward bigger and heavier ST tires increasingly available in all-steel radial construction to meet the towing needs of more powerful vehicles and larger campers. Te movement toward higher load capacity tires is continuing in 2016.

“Larger sizing and the trend to heavier ply tires seems to

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have stabilized for now, but the larger sizes are still gaining in popularity,” says Addis.

“Te 13- and 14-inch ST radial market continues to decline.

Dealers need to be prepared for the shif in sizes and have the right product on the shelf. Many ST radial tire sales are made due to failures. Consumers are not always able to wait until the dealer gets their daily delivery from their suppliers. Dealers need to have product in stock,” says Addis.

Dealers can expect the trend for higher load-carrying capacities on trailer tires to “continue for some time,” according to Bill

29

Special trailer tires Dashiell, senior vice president of commercial products for TBC Corp.’s TBC Brands division.

“Trailer manufacturers are increasing the load ratings of the trailers, requiring tires to have a corresponding increase in load-carrying capacity. OEMs are starting to make this transition, slowly, and are even moving to the higher load capacities ofered with all-steel ST tires.”

Consumers are also contributing to the trend. “Tere has also been a move by some consumers the past several years to move up a load rating from the OE size when purchasing replacement tires,” says Dashiell.

He suggests dealers boost the amount of all-steel ST tires in their inventories to accommodate the needs of manufacturers and consumers. “For tire dealers these subtle but growing trends mean that a few extra SKUs are probably going to need to be stocked to be prepared to meet customers’ ST tire demands,” says Dashiell.

Preparation includes reviewing stocking levels for all-steel ST tires, according to Dashiell. “All-steel tires can provide the consumer with improved performance and reduce the risk of tire overloading and or downtime, something that resonates with trailer owners.”

Greenball also expects the trend for both larger tires and heavier load capacities to continue. “Tis will add a few more SKUs that the dealer will either need to have access to or carry in stock,” says Tsai.

According to Allen, the trend for higher load capacity is positive for dealers because they can concentrate the inventory they carry on the higher load ratings. But tires with heavier load ratings require a heavier-duty wheel.

“Consumers feel more confdent in having a higher load capacity tire which they feel is safer,” says Allen. Te concern is that the other parts of the trailer cannot support the additional

Maxxis says the M8008 is a high-speed radial construction tire providing a smooth ride with extended tread life.

30

weight. “Te wheels and the axles are not necessarily rated for higher loads,” says Allen.

“Our focus at Carlstar has been on safety and reliability of our products. We are focused on innovating our products to provide robust and safe products for the proper load,” says Allen.

“Te industry as a whole needs to do a beter job of educating the industry and consumers about safe practices surrounding trailer tires.”

Many of the issues with trailer tires are related to underinfation and overloading, according to Allen. “Expect to see more from Carlstar around safety and reliability in 2016 and beyond.”

Expect to sell more ST tires Demand for ST tires has increased as their prices have dropped. An improving economy and lower gas prices also contribute to increasing ST tire sales.

Joe Ostrowski reports American Kenda Rubber Industrial Co. Ltd., which does business as Kenda USA, has seen more than a 10% increase in unit sales over 2015. He is sales manager for Kenda’s Americana Tire Division.

Greenball’s Tsai says his company believes the demand for ST tires will “steadily increase” in 2016.

“It has been reported that trailer sales have been on an increase the past two years. As a result we should start to see replacement sales pick up in 2016 and beyond,” he says.

Carlstar also predicts more trailer tire sales this year. “We think trailer tires sales units will continue to grow in 2016, especially with lower gas prices that should drive more recreational use.

Our forecasts show single digit growth in the segment on a unit basis,” says Allen.

TBC expects a slight increase in demand. “Overall ST tire demand is expected to increase slightly in 2016 as the OE market remains strong with robust RV, toy hauler and utility

The Carlisle brand Radial Trail HD will be available later in 2016. The premium tire’s features include a variable pitch pattern to reduce road noise.

Greenball’s new premium Tow-Master ASC is available in ST235/85R16 LRG. More sizes in 14- and 15-inch diameters will be added later in 2016.

MTD May 2016

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Special trailer tires trailer sales,” says Dashiell. “As the trailer population continues to grow, so has the replacement ST tire market. As long as the economy remains healthy we expect ST trailer tires sales to continue to grow.”

Maxxis has boosted its inventories of special trailer tires to prepare for increased demand, according to Addis. “With more stability in the economy the RV market is strong. Many more RV owners are back on the road and traveling longer distances,” he says.

“Te demand for ST radials will be very strong in 2016

and likely for the next few years. Maxxis is geared up and we have brought in additional inventories to keep pace with our increasing demand.”

A look at the latest tires Greenball is launching three ST lines this year aimed at specifc segments of the market. Te Tow-Master All-Steel Construction (ASC) is a full radial ST line targeting the premium end of the market, according to Tsai.

“Despite the overall trend of ST pricing going down and an overabundance of availability in the economy line, there exists a segment of the trailer market that is demanding a beter ST tire than what is currently available,” he says.

Newer model tow vehicles feature engines with previously unheard of amounts of horsepower and torque

East Bay Tire Co. sells the Carlisle and Duro brands of ST tires. The Carlisle Radial Trail RH is pictured.

fgures. Combined with trailers geting larger and heavier in the categories for luxury travel, cargo, horse and commercial type trailers, the next generation of ST tires needs to outperform the standard ST tires of today for many specifc applications, according to Tsai.

“Unfortunately in the current lowest price leader market, most dealers gravitate toward the cheapest available ST tire. But if dealers look at the prices of today’s 2500 and 3500 luxury pickups and some of the luxury and heavy-duty trailers, they would recognize there is a demand for a premium trouble-free trailer tire that currently hasn’t been available until now,” says Tsai.

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MTD May 2016

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Special trailer ties Greenball is also introducing the package to increase impact resistance, Mirage ST Radial, an economy line and a proprietary tread contour and of ST radial tires designed to compete patern that eliminates irregular wear with a majority of currently available conditions. low-priced ST radials.

T B C ha s ad d ed a n ew s i ze, “Our other ST radial lines have ST235/80R16 LR-G, to its latest product, specifc features and benefts built into the Sailun S637T all-steel trailer tire. them that provide additional value to TBC has also added four sizes to the consumer who isn’t necessarily its Trailer King II ST program for the 100% price driven, but more value OE market including two higher load driven. Te new Mirage ST Radial rated tires, ST175/80R13 LR-D and line is built for the price conscious ST185/80R13 LR-D. Te new sizes are buyer and for the economy market,” ST145R12 LR-D and ST145R12 LR-E. says Tsai.

Kenda expects to complete the rollout Te third new tire from Greenball of its new radial line of trailer tires, the is the Centennial Hiway Master, an KR35, in June, according to Ostrowski. economy line ST tire for small trailers, Te engineers at Kenda’s new technical utility trailers, and other applications center in Green, Ohio, contributed to where a bias construction is more the development of Kenda’s new tire. than adequate and price sensitivity Ostrowski says the tech center puts is a major decision factor, according Kenda closer to its markets for trailer tires to the company and gives the KR35 some economies over TBC says the Sailun S637T is an all-steel Carlstar will also be introducing a highway rib tire ideal for all high load the line it replaces. “We’re building a great premium Carlisle brand tire in 2016, capacity trailer applications. product for less money. Te technology the Radial Trail HD. Available in 15 is geting beter, design improvements, sizes, the new tire’s features include a steel belt and spiral cap compounds, just everything. Te new product line is all those design to reduce the risk of tread separations, a high tensile belt good things rolled into one,” says Ostrowski. ■

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MTD May 2016

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feature

New battery technologies power sales opportunities for dealers

By Ann Neal

W

hen it comes to batteries, it’s a brave new world in a service bay. “Te days of standard alternator output — it’s good if it is between XX.X and YY.Y volts — across all makes and models are over,” says Jim O’Hara, vice president of marketing for Clore Automotive Inc. Conventional lead acid bateries are being replaced by absorbent glass mat (AGM) bateries. More new technologies are on the horizon, namely enhanced fooded batery (EFB) technologies and lithium ion bateries.

“AGM continues to grow in the vehicle production world,” says John Munsell, batery product specialist for General Motor Corp.’s ACDelco brand. “It is estimated that by 2020 about 40% to 45% of all vehicles manufactured in the U.S. will have an AGM batery. EFB bateries are still not a big factor in the marketplace at this time. Tat could change over time as EFB might be used for second or third replacements in a start-stop vehicle as the vehicle ages.”

Marcel Ayasse, senior product manager of Robert Bosch LLC’s Automotive Afermarket North America division, says EFB technology is slowly ramping up at select original equipment manufacturers. “However, it has not arrived in the independent afermarket yet. AGM continues to grow in the North American market both on the original equipment side in combination with start-stop technology and in the afermarket as an upgrade.”

Demand for AGM and EFB bateries increases signifcantly as start-stop technology gains momentum around the world, according to Dale Gospodarek of Johnson Controls Inc. Startstop penetration for new vehicle production will reach 47% in the U.S., 82% in the European Union and about 50% in China by 2020, according to the company’s projections. In response to the anticipated demand, Johnson Controls is expanding AGM production capacity in the United States, Germany and China with $555 million in investments between 2011 and 2020.

In addition to OE requirements, AGM bateries are increasingly gaining in popularity as a premium choice for high-end and advanced fuel-efcient vehicles with large power demand. “It is well suited for people who seek greater reliability and longer life in auto bateries,” says Gospodarek, who is vice president of marketing and strategy for afermarket U.S. and Canada in Johnson Controls’ Power Solutions division. “Electronic features such as DVD players, heated seats and audio systems all add increasing demands on a batery. With superior cycling capability, charge acceptance, and the ability to operate at a low state of charge, AGM is the technology of choice.”

O’Hara believes the biggest trend is continuing proliferation of the AGM batery as an OE option in both start-stop equipped and non-start-stop equipped vehicles. “Tis is a trend that is accelerating and will continue to impact the service environment going forward. All shops, regardless of area of specialization, will need to be familiar with AGM bateries, their characteristics, and what they require from a service perspective.”

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Exclusive dual-seal valve assembly

Proprietary PowerFrame stamped grid technology resists corrosion and maximizes life Proprietary negative paste increases charge acceptance High density positive paste provides strong bonds for more cycles Engineered AGM separator eliminates acid spilling Reinforced polypropylene composite case

The graphic shows Johnson Controls’ AGM technology. The company says its AGM batteries are sealed, maintenancefree and nonspillable. The battery has six cells made of the positive plate, AGM separator, negative plate, and positive and negative paste. The positive plate is wrapped in the AGM separator. The number of plates per cell depends on the rating of the battery. A typical battery may have 15 plates per cell; eight are positive plates and seven are negative plates.

Dedicated batery specialists Are the new batery technologies creating a need for dedicated batery specialists in a shop’s service bays? Tat’s the question Modern Tire Dealer asked several batery manufacturers.

“Dedicated batery specialists aren’t required, but all technicians need to understand the characteristics and needs of the bateries they encounter,” says O’Hara. In addition, techs need to understand the batery in the context of the overall starting and charging system in which it is situated.

“Each model is equipped with a specifc system with specifc characteristics, so technicians need to approach each diagnostic event in the context of how that specifc system is intended to operate.”

According to Gospodarek, under normal conditions most 12 volt automatic batery chargers will work on an AGM batery.

“However, many newer batery chargers have setings designed specifcally for AGM bateries.” He says the newer models of batery chargers are beter for overall batery performance due to microprocessors that collect information from the batery and adjust the current and voltage accordingly.

Charging an AGM batery or replacing one in a start-stop vehicle is a diferent experience compared to a conventional technology. Finding the batery is the frst step.

“When replacing an AGM or EFB batery in a start-stop vehicle, shop technicians not only need to be able to locate the batery,

MTD May 2016

which can be under a hood, in a trunk or even under a seat. Tey also have to deal with new components like Batery Management Systems (BMS) or Intelligent Batery Sensor (IBS) that link the batery to the vehicle’s on-board electronics,” says Gospodarek.

He says Johnson Controls has developed a training program focused on educating technicians using a series of short video clips to help them correctly handle this new technology.

Te technical replacement of an AGM batery is no diferent from a conventional fooded batery, according to Ayasse.

“Tere might be a batery sensor atached to the terminal connectors, but it doesn’t change the mechanics. Te one thing to look out for is whether the car comes with a batery management system, which most of the newer ones do. If that is the case, the system needs to be recalibrated afer a batery replacement if the exact 1:1 OE replacement isn’t used. Tis is typically doable with the standard test equipment a shop would use on the specifc car.

Tere should be no need for batery specialists.”

ACDelco advises techs to understand that there is a diference in the technology and that this requires some diferent care.

“Te tester needs to have an AGM capability, and most do, but the tech needs to acknowledge that they are testing an AGM batery,” says Munsell.

“Having the right charging equipment is very important in order for the batery to atain its full life. It is important for the techs and the shop owners to know that they must never put a conventional lead-acid batery into a start-stop application.

Engineering analysis indicates that a conventional lead-acid batery will last four to six months in a start-stop vehicle.”

www.moderntiredealer.com

More sales opportunities What do the new technologies mean for a shop’s revenue stream? Gospodarek says AGM bateries are a premium choice ofering more value to consumers and more sales opportunities to shops. “Te big revenue opportunity for shops is to test bateries on every vehicle they service.

“Research has proven that one in four bateries in vehicles today will be replaced in any given year.”

Shops using battery test equipment to diagnose the state of charge will identify more battery replacement opportunities, according to Gospodarek.

“Communicating these results to consumers will result in more batery sales.

A G M p r o v i d e s Clore’s BA9 Battery and System Tester a great premium tests conventional fooded acid, AGM fat option for consum- plate, AGM spiral wound, start-stop AGM, ers, based on their start-stop EFB, and gel cell batteries.

Quik-Link: 800-687-1557 ext. 16116

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Bateries vehicles’ electrical needs, but a consistent testing protocol will create more batery opportunities.”

O’Hara reminds shops to focus on the vehicle, not the type of batery that powers it. “Every non-electric vehicle that passes through a service bay has a starting batery of some sort. It has other electrical system components, such as a starter and alternator,” he says.

Regularly testing these components will yield opportunities to speak with customers about suboptimal components that are either in immediate need of atention or approaching the end of their useful life, starting with the batery, according to O’Hara.

“Having a strong working knowledge of these systems will allow shops to diagnose and resolve issues efficiently and Bosch says its S6 High PerforAGM batteries feature efectively, allowing those mance the latest technology for startrepair events to be more stop applications. proftable.”

Ayasse says newer technologies such as AGM defnitely present a higher revenue opportunity.

“However, due to the longer lifetime, the shops are likely to make the same money or less on the product itself provided the car owner would have come back to the same shop when the conventional batery failed. Te installation price depends on the batery management system, which will cost more if there is one.”

Get ready for lithium ion Increasingly, shops will encounter lithium-based starting batery solutions, as well as lithium bateries incorporated in start-stop systems, according to Clore’s O’Hara.

“Like the AGM battery, lithium batteries will require equipment optimized for use with them, including batery testing and charging equipment. We are still some time away from lithium appearing regularly in service bays, but it is likely the next batery type service facilities will need to concern themselves with.”

What about bateries for hybrid, plug-in and electric vehicles?

Says Gospodarek, “Hybrid, plug-in and electric vehicles have a future role in helping automakers meet environmental regulations, but will remain a relatively small part of today’s automotive market. Te afermarket hasn’t really shaped yet around these new technologies.”

The new battery technologies have different recycling requirements, too. It is very important that lead smelters receive only lead-acid and AGM type bateries, according to Munsell.

“Shop owners should be cautious when recycling bateries.

If they are not sure if a batery can be recycled with lead-acid or AGM bateries, they should ask.

“Mixing of technologies such as lithium ion with lead-acid and AGM bateries can create serious and dangerous hazards at the smelter.” ■

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MTD May 2016

Quik-Link: 800-687-1557 ext. 16119

feature

Using e-media to attract customers Two tire dealers show both new and old methods work

By Joy Kopcha

W

hether it’s a baseball game or a rainstorm, Mark Gillard sees opportunities to engage with Sullivan Tire Co. Inc.’s customers.

Te Massachusets-based tire dealership is the 12th largest in the country, and it’s not afraid to experiment with its e-media strategy, says Gillard, the company’s marketing and advertising manager.

Sullivan Tire is particularly active on social media, with a heavy focus on Twiter and Facebook. Gillard says he and his team try to adhere to a 70-20-10 rule: 70% of posts are informative and fun and ofen relate to car care; 20% of posts share other people’s content; and the fnal 10% promote Sullivan Tire directly.

“We try to think of something creative,” Gillard says. “We try to have fun with it.”

Much of the fun feeds of the Boston area’s enthusiasm for its sports teams. Gillard says he ofen tweets while watching Red Sox games, cheering on home runs and strikeouts like other baseball fans. But he’s just as likely to remind the company’s 6,000-plus followers on Twiter (and 21,000-plus on Facebook) to come in for a new set of windshield wipers during a rainstorm.

Tere’s fun to be had in tires, too. Earlier this year Gillard sent tweets asking customers to send in photos of the sidewall of their tires. “If you need a quote on tires take a pic of the tire sidewall, tweet it to us and we’ll shoot you a quote.”

For the past three years Sullivan Tire and the University of New Hampshire have promoted a ticket giveaway on Facebook. The prize includes VIP tickets to the UNH game, a pair of Boston Bruins tickets and a $100 Sullivan Tire gift card.

Ted Wiens long has relied on radio advertising, including sponsorship of Coyote Country Fest, a huge music concert. The tire dealer sets up a booth at the event.

Did they receive a few replies? Yes. Did it set of a fre storm of tire sales? No. But Gillard was OK with that – though a big run on tires would have been OK, too.

“We have specifc goals. Social media is one of the top drivers to our website; it’s in the top fve. We’re building brand awareness. We’re building trust. We let people know there are humans behind this company.”

Breathing new life into a business doesn’t have to come from social media, however. One tire dealer is puting a new twist on an “old” technology. Ted Wiens Tire & Auto Centers this year re-invested in radio advertising, specifcally, two Spanish radio stations.

“Tis is our entrance into Spanish-language marketing,” says Jennifer Wiens, brand manager for the 11-store tire dealership in Las Vegas. Wiens says the Spanish radio ads are running on two stations. “It’s just branding. Most of our stuf isn’t an ofer. Most of it is just branding.”

In terms of demographics, it makes perfect sense. Of the more than 1.9 million people living in Clark County, where Las Vegas is the county seat, 568,644 – or 29.1% – identifed as Hispanic or Latino, according to the 2010 Census. In Las Vegas the Hispanic or Latino population grew from 23.6% in 2000 to 31.5% in 2010.

“We’ve been here since 1948, and we’re the oldest independently owned auto and tire shop in Las Vegas. You can’t drive far without seeing one of our stores. Our main thing is geting the name out there. Tey may not need us today, but they may need us another day.” ■

Two social media tips from a pro Mark Gillard is the brains behind Sullivan Tire Co. Inc.’s social media efforts, and he has two pieces of advice for tire dealers taking their frst leaps into social media.

1. You don’t have to be active on every platform. “Pick a couple and get good

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at them.” Sullivan Tire has Instagram and YouTube accounts, plus a Pinterest page, but those aren’t their go-to spots to engage with their customers and communities.

Sullivan Tire primarily sticks to Twitter and Facebook. “And if I was going to do

one, I would tell them to do Facebook. I think Facebook is the place. It’s where the eyeballs are.”

2. Don’t hire a frm to do it all for you.

“I’m a believer in keeping it in house.

I really think you should at least be in charge of it in house.”

MTD May 2016

Quik-Link: 800-687-1557 ext. 16120

Counter intelligence

Leading up the hill or of the clif Make your employees see the light or feel the heat

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s long as I can remember, I have been drawn a company has a customer-centric set of core values to people who demonstrate strong leaderor a strong customer-satisfaction principle, all it ship skills. My dad was a leader; with an takes is one issue to cause an incident that causes active and creative mind, he inspired those around lasting damage. him. My dad demonstrated the ability to get things It’s been my experience, however, that there is done and to lead others to do the same. Somehow usually a trail of loose compliance that has been my dad, Harvey Williams, learned to lead. tolerated that lead to the incident. I say this because In 1950, he began his career at General Motors I’ve supervised stores that excelled in sales and profts by working on the assembly line. When he retired without incident.

42 years later, he was a plant manager. Refecting on By Wayne Williams Some managers/locations have a propensity toward my dad’s career, I clearly remember his colleagues problems and issues with the number of occurinteracting with him. With mutual respect, there was an energy rences of customer confict. Tese same manager/locations and balanced desire to achieve worthwhile and necessary goals. demonstrate difculty in resolving complaints and tend to My dad was stern and focused; he was clear about goals. have reasons why they believe customers are so unreasonable.

Building quality cars and saving costs were primary goals. Tis is a red fag, and unbalanced or noncompliant managers Building a quality team and sharing the rewards and recogni- and staf have to be brought into compliance. Tis is usually an tion was just as important.

John Maxwell, the world-renowned leadership speaker, is quoted as saying, “A leader is one who knows the way, goes the way, and shows the way.”

Ray Kroc, the founder of McDonald’s Corp., said, “Te quality of a leader is refected in the standards they set for themselves.”

Vince Lombardi Peter Drucker, the management and leadership guru, said plainly, “Management is doing things right; leadership uncomfortable process, but owners who ignore the signs will is doing the right things.” pay a price. To the owners I say, “Listen to Vince Lombardi’s Each of these quotes has its own distinct nuance, which words on leadership, ‘Te achievements of an organization when understood and executed through a skilled leader makes are the results of the combined eforts of each individual.’” for the potential of powerful results in any organization.

No owner can claim ignorance; each of his team members Like I said earlier, success and satisfaction are the result (employees) represents each other and the whole enterprise. of balanced desires to achieve worthwhile goals that beneft I’ve hired and managed a number of unsatisfactory (bad) both the provider (retail tire stores) and the user (retail tire managers, sales persons, and service techs. In some cases, customers). you can bring compliance with generally accepted principles When goals are misinterpreted and actions begin to drif, and company policy, and sometimes you can’t. If you have there is potential for conditions to become unbalanced, an unhealthy, unbalanced and out-of-compliant situation, it leading to disastrous results. If customer satisfaction goals must be dealt with immediately. and healthy business practices are replaced even slightly with As a young boy, my dad was commited to my compliance, more aggressive selling practices that focus more on hiting and for the most part, I was equally commited. However, my quotas or budgets, that is the beginning of a slippery slope. dad would deal directly, swifly, and with clarity in any of my Lef unchecked, the practice will lead to more unbalanced unbalanced choices. practices, and before long, overselling will become the norm.

My last quote from a famous leader is from Ronald Reagan, Having spent 25 years in the retail automotive afermarket “When you can’t make them see the light, make them feel in California and operating dozens of locations across the the heat.” state, I’m familiar with the California Bureau of Automotive My dad understood this before Reagan quoted it; I either Repair (BAR). Overselling to an uninformed motoring saw the light or I felt the pain. As an owner, you can choose public is a real problem, and the BAR meets the issue with your pain. Tere are plenty of examples where the lack of strong regulations. Te fnes, penalties and closures lead to leadership has led to severe consequences. a loss of revenue, further potential investigations, and a loss Winners win. Nobody wins (or loses) alone. ■ of reputation.

All it takes is one counter person and one unhappy customer, Wayne Williams is president of ExSell Marketing Inc., a and it becomes one big mess. Tough a company has strong “counter intelligence” frm based in La Habra, Calif. He can convictions about customer service and customer care, though be reached at exsellmkting@gmail.com.

‘The achievements of an organization are the results of the combined efforts of each individual.’

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MTD May 2016

Quik-Link: 800-687-1557 ext. 16121

European notebook

Tire labeling update Increased surveillance should fx a loophole

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t has been almost three-and-a-half years Estonia, Finland, Germany, Latvia, Lithuania, since tire labeling legislation was introduced Luxembourg, Poland, Romania, Spain, Sweden across Europe. Although tire labeling is now and Turkey will collectively coordinate random completely accepted “as part of the industry” inspections and be armed with special mobile in all European countries, the procedure is far devices that can efectively access a continually from perfect and open to criticism. updated database of European results.

Te chief area of discontentment with the Tis latest move to regulate the standard of tire legislation has always been and continues to be labels being presented to the European tire market that tire labeling is completely open to abuse sector has been enthusiastically welcomed by many and fraud due to the absence of any ofcial and By John Stone relevant associations. Tat includes members of efective control from a third party not connected the European Tyre & Rubber Manufacturers with the industry. Terefore tire manufacturers are lef to Association (ETRMA), who have stated they believe this evaluate their own products, and the potential for bias is action will have a good efect toward establishing a level hardly reassuring. playing feld across Europe in terms of the tire labels on tires for sale.

Although the news of this ground-breaking development has only just been revealed, it looks set to radically re-set and tighten up the standard of tire labeling — and hopefully eradicate any companies that up until now have been less than economical with the truth about label ratings.

As with all new developments in any form of legislation, it will take time for the European tire market to fully PROSAFE stands for Product Safety Forum of Europe.

Fortunately it has just been announced that this “freedom loophole” is about to be slammed shut. Te launch of the Surveillance Action on Tyres 2015 project (MSTYR15), which was introduced on April 6 of this year, will give accountability to tire labelling. Te project will be funded by the European Commission’s Horizon 2020 program and coordinated by the Product Safety Forum of Europe (PROSAFE).

Tis most welcome development will take place over the next two years until February 2018. As part of the project, qualifed inspectors from 13 European Union countries and Turkey will actively test the rolling resistance and wet grip performance of close to 150 diferent tire brands, with the aim of comparing each tire’s actual characteristics with its displayed EU tire label rating.

When I spoke with a representative of MSTYR15, I was informed that the project’s primary objective was to establish the adoption of “best practices,” along with an even higher level of approach to market surveillance toward all tire suppliers for the beneft of end users. At the same time MSTYR15 makes it clear that action will be taken when incorrect labels are found to be in use, which could lead to incorrectly labeled tires removed from the market sector.

PROSAFE states that the labeling inspection project covers summer passenger tires that are subject to regulations EC1222/2009, EU228/2011 and EU1235/2011.

Appointed inspectors from Belgium, Bulgaria, Croatia,

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Are all the ratings on an EU label accurate? Maybe not.

appreciate the efectiveness of the checks, but I frmly believe that it at least will be the beginning of an age when all tire labels in Europe will be accurate. Only time will tell how long this process will take; I will be keeping a close watch on the situation. ■

John Stone has been working within the global tire industry for the last 24 years. In 2004, he launched his own consulting company, Sapphire Media Services, which caters to business media clients around the globe. Stone also writes for tire and automotive-related publications in Europe, South Afica and Asia.

MTD May 2016

Quik-Link: 800-687-1557 ext. 16122

Quik-Link: 800-687-1557 ext. 16123

Business insight

Bull’s-eye on your back How to avoid invasive government fnes

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hree huge issues in automotive manageLiterally, lawyers and news crews will parachute ment have just come together recently from the sky and rappel into your building with that if you own or run a shop, should take smoke grenades if you tell armed service people top priority, even over customer satisfaction, (at you will not honor their jobs while they serve our least temporarily). country. OK, not literally, but those black vans First, the Occupational Safety and Health might show up....

Administration (OSHA) announced that for the Tird, most visits by an OSHA inspector are frst time in 25 years, fnes assessed by OSHA have generated from a complaint by a former employee increased. According to SESCO Management or a current disgruntled one. When this happens, Consultants, OSHA is now required to implement By Dennis McCarron do not retaliate. Tis is its own violation and will an initial penalty “catch-up adjustment,” which compound the issue and cost you more money. must be in place by Aug. 1, 2016.

Remember this: Most disgruntled employee calls to Te increase is approximately 80%. Tis means the OSHA are verifed and are legitimate. Tat means the current maximum fne for a “Willful and Repeat Violation” violation condition exists. Spend your energy and time will increase from $70,000 to $127,000, and the current fxing the problems instead of trying to fnd out who called. maximum fne for a “Serious Violation” will increase from So legislation, ramped up by need for revenue in an $7,000 to $12,500. (See sidebar for common violations.) industry that has notorious high turnover, means you should Second, targeting automotive repair shops has become at a minimum start doing something today to make sure a focus of federal administration members. Tey see the you are not going to go bankrupt. Remember, in a shop opportunity to show they are doing something about that makes 5% net proft, a fne of $127,000 from OSHA improving worker safety in an election year, and they also would require that shop to sell an additional $2.5 million know that it could be a potential cash cow for state- and in sales on top of regular sales to ofset the fne. For many federal-strapped budgets. shops, a single fne like this could spell bankruptcy, and To politicians, this is free money with no downside OSHA never just has one fne at a shop. ■ to collecting. Who doesn’t support “workers’ rights” or “safety and standards”? Tis is similar to the government Dennis McCarron is executive director of Dealer Strategic swooping in when it hears of a business violating the Planning Inc., a company that manages multiple tire dealer Uniformed Services Employment and Reemployment 20 Groups in the U.S. (www.dsp-20group.com). To contact Rights Act of 1994.

McCarron, email him at dennis@dsp-20group.com.

8 areas OSHA will target in your dealership Top citations issued to shops by OSHA include the following.

1. Fall protection: Paint elevated steps the “safety yellow” color in all shop areas and around the building. Buy the good paint.

2. HazCom: Seriously, have a meeting.

This week. Review the HazCom and company policies and have everyone sign the review document. HazCom meetings are short and should be done biannually.

3. Scaffolding: One common occurrence I always found to be a problem was when tires were moved from one foor to another. Some employee always unscrewed the railing or removed the chains.

Even though the employee did it

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without your knowledge, you are responsible.

4. Respiratory protection: This mostly applies to a collision center (which is lumped into “automotive repair”). But what about airborne contaminants in your shop?

5. Lock out/Tag out: Ask everyone if any lifts bounce or if any equipment seems to be malfunctioning. If so, lock it out and call for repairs. It is so much less expensive to be down a bay for a day than it is to pay a $100,000 fne or settle a lawsuit.

Or even worse live with a tragedy that could have been prevented.

6. Electrical wiring: The minimum fne for a missing light switch plate is $2,700. The cost of plastic light switch cover plate is 50 cents!

7. Machine guarding: How is it that a new bench grinder “loses” its plastic shield cover 0.0006 of a second after installing it? There is a huge fne for this.

8. Tripping: Loose hoses on the ground, return parts on the foor, spills, scrap tires — if the shop looks messy, the OSHA inspector will pile on the fnes. If it’s not clean and organized, OSHA will cite you and give you 15 days to tidy up.

In many cases your insurance company or local department of labor will give you a free inspection, which gives you not only time to correct mistakes, but also leniency if you can prove to a judge you are proactive about making your shop safe.

MTD May 2016

Quik-Link: 800-687-1557 ext. 16124

Focus on industry

(l to r): Dr. Ramen Majumdar, project managerpolymer science, Roger Champlin, engineer, and Ed Montgomery, general manager, discuss polymers at Triangle’s technical center in Akron, Ohio.

Triangle tires were displayed at the anniversary celebration in Shanghai.

Pierre Cohade, CEO of Triangle Tyre Co. Ltd., spoke about the company’s brand globalization strategy and plans to launch 151 products in 2016 at the 40th anniversary celebration.

Triangle celebrates 40 years and begins building its brand in the U.S.

By Greg Smith and Ann Neal

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t a press conference last year during the Specialty Equipment Market Association (SEMA) Show, Triangle Group executives talked about plans for the U.S. market. Since that time, the company has opened a wholly owned subsidiary in the U.S. and brought in Manny Cicero as its CEO. The company also has celebrated its 40th anniversary in Shanghai, China, in April, with a day-long conference. Te Weihai City-based company hosted around 500 people. Te atendees included Chinese government ofcials, employees from around the world, suppliers, customers and, yes, Modern Tire Dealer.

Triangle Group Chairman Yuhua Ding shared his vision with guests. He referred to Albert Einstein and his belief that “science and technology are the driving forces of society.” Ding said the company is focused on the improvement of its U.S. research and development center in Akron, Ohio, and will use this model in other parts of the world.

Ding said the company hopes to be producing 30 million units per year in fve years, up from 25 million per year at the present time.

Ding ended his remarks by stating the company wants to accelerate its globalization, but in doing so, he says the “global team must adhere to integrity and culture. Hard work and diligence is the road to success.”

Product leadership, manufacturing excellence, and the Triangle brand will drive the company’s success and globalization, according to Triangle CEO Pierre Cohade.

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“Our focus on product leadership is anchored on true research and development testing facilities, one in Weihai City, one in Akron, Ohio, and very soon we will announce a third facility in Europe,” he told atendees.

“We invest every year 5% of revenues in developing our own technology and our own expertise using the most advanced testing equipment. Te expertise we have developed is the reason Triangle does only one thing. We love tires, we only do tires, and we do all tires.”

He also ofered a glimpse into Triangle’s plans for products in 2016, including the introduction of aviation tires and the reintroduction of a line of radial farm tires. A total of 151 Triangle products will be launched in 2016.

“We continue to innovate in jumbo OTR, we just manufactured our frst 63-inch tire, the world’s largest tire (53/80R63). We continue to innovate in OTR radial, we continue to improve the OTR bias, but we never forget our roots in TBR and PCR,” he said.

An opportunity in the U.S. Te conference gave Triangle a platform for celebrating its heritage and its initiatives to transform from a Chinese-focused company to a large player in the global tire industry.

And the U.S. market is one that the company intends to pursue.

Manny Cicero, new CEO of Triangle Tire USA, was the only speaker from Triangle who was not based in China.

Cicero used his speech to explain branding in the U.S. “Brands can make people pay more for even a commodity,” he said. “But it starts with a relationship we’ve established over the years. Tis

MTD May 2016

Among the 500 guests in Shanghai for Triangle’s 40th anniversary event were (from left): Brett Mayze, vice president-strategy, Consolidated Tyre Co., Australia; Sid Parr, director of commercial tire sales, Triangle Tire USA; Tunney Vandevener, manager of consumer tire sales, Triangle Tire USA; and David Swarbrick, vice president-sales, Consolidated Tyre Co., Australia.

will allow our (dealer) customers to help promote our brand.”

Cicero said Triangle’s great opportunity is “to build a brand in America that is clearly focused on the independent tire dealer.”

Cicero shared highlights of Triangle’s fve-year marketing strategy with atendees.

“So many companies have entered the U.S. on price and price alone that most dealers see it now as a given. Tat’s what they expect, especially from a Chinese tire company. Triangle cannot succeed long term with such tactics,” Cicero said.

Te next two years will be devoted to “pushing” the product and brand through America’s best dealers, according to Cicero.

Te third year will see the start of a “pull” strategy to focus on the purchase, ownership and repurchase experience.

Cicero said the brand push activities are designed to “meaningfully reward those key distribution partners willing to get in on this unique ground foor opportunity. Once distribution is in place we’ll shif to brand pull activities to bring more customers to our customers’ door. Finally, we’ll continue to refne our marketing eforts and lif the Triangle brand to increase brand awareness and brand preference and to make Triangle a strong and sustainable tire brand in the U.S. market.”

While emphasizing the need to work in partnership with dealers, Cicero stated that Triangle has growth opportunities, with some of those coming about due to the fact that major tire companies are “competing against” their customers.

“I think we have an extraordinary opportunity before us in America. Te major tire companies are growing through controlling their distribution channels, not partnering with them. Tey’re not just supplying their customers, they are actually competing against them. Triangle could be the new brand, the new alternative the independent tire dealer can turn to for partnership and profts,” he said.

Cicero told MTD, “We are looking for dealers interested in geting in on the ground foor with a global brand that is making a strong commitment to the U.S. market. We want dealers

www.moderntiredealer.com

Triangle Tire USA CEO Manny Cicero told guests that Triangle will only succeed in the U.S. by establishing a brand strategy and execution that is highly focused on what matters most to dealers.

who want to build the brand with us, to grow with us, not just a one-time acquisition situation based on price.”

Te company plans to have warehousing available for the second half of the year, but for now, Cicero says they are selling container loads. “But this will change when we get our warehouse up and running.”

When asked directly about how Triangle will determine whether its sales in 2016 were successful, Cicero responded, “For year one, more than a quantifable number, we are trying to change the direction of Triangle Tire in the U.S. from strictly container loads to building long-term relationships with dealers and commercial end users. So, we may actually be taking a step back in 2016 with an eye on a more strategic path for the future.”

Tech center in the U.S. A month before the anniversary celebration in Shanghai, Cicero introduced his sales and marketing team at a media event at the company’s technical center, A3T LLC, in Akron, Ohio.

Cicero’s team consists of Mary Ma, director of marketing; Angelia Wyat, customer service manager; Sid Parr, director of commercial tire sales; and Tunney Vandevender, manager of consumer tire sales. Cicero plans to add sales and marketing professionals, as well as people to fll operations, fnance, engineering and warehousing functions. He expects the team to grow to 20 employees.

A3T is a wholly owned subsidiary of Triangle Tyre Co. It is stafed by eight engineers who conduct research and development on tire technologies, tire manufacturing processes, rubber processing, testing, tire design, and rubber and materials compounding. Ed Montgomery is the general manager of the technical center, which was established in August 2011. A3T serves the North American market and also supports global product development for Triangle.

See the Modern Tire Dealer website for more coverage and photos of MTD’s visit to Shanghai for Triangle’s anniversary celebration and tour of the A3T tech center in Akron. ■

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Focus on industry

MTD exclusive: Triangle’s Ding on globalization, products, IPO and tarifs

By Greg Smith

W

hile in China for the 40th anniversary of Triangle Tyre, Modern Tire Dealer Publisher Greg Smith sat down with Triangle Group Chairman Yuhua Ding in his Weihai ofce.

Te exclusive interview included a variety of topics, ranging from global sales plans and new production facilities to the company’s pending IPO. Triangle Tire USA’s Mary Ma, director of marketing, served as the interpreter for the interview.

Ding says the company currently has export sales of 58%. He did not break down export sales by country or region, nor did he answer specifc questions regarding sales fgures or proft fgures for the company.

During the conference in Shanghai, the company reported growing from having sales in 126 countries in 2010 to 178 countries currently.

“In the next fve years, Triangle will continue to stay commited to brand globalization for stable, solid, and fast growth in the global market. We will further segment the global market, continue to customize sales according to diferent market demands, promote global marketing and service systems, build global Triangle Group Chairman Yuhua Ding said the company is focusing on distribution networks, and develop a product long-term growth in the U.S. market and building awareness of the portfolio to meet different market needs Triangle brand name among U.S. consumers. He is pictured in his offce in and address diferent consumer demands,” Weihai, where the privately owned company is headquartered.

Ding said.

Asked about tires for the U.S. market, Ding said, “Triangle to go public with the stock. Currently, market conditions were Tire USA will coordinate with A3T based in Akron, Ohio, not favorable. Ding hopes that the ofering will move forward and Weihai R&D headquarters to develop new products for in the frst half of this year. Te total amount of stock to be the U.S. market needs and demands.” ofered by Triangle is 25%, according to Ding.

Ding said the company is looking for long-term growth in Regarding U.S. PLT tarifs, Ding said, “Triangle will focus the U.S. market and plans to focus on its Triangle brand name. on segments that can absorb these increased costs. On the fip He wants to achieve this growth goal through high product side, it helps us to build our brand and shif from commodity quality, consistent performance, and integrated market and segments to value-added segments, such as UHP.” Regarding service systems. The company is planning for continued potential TBR tarifs, Ding simply said, “Tere are lots of investment in product innovation, research and development, uncertainties with TBR.” and advanced manufacturing systems. “We must continue In China, Ding says that Triangle maintains a 50/50 balto build a partnership with the right customers,” Ding said. ance between OE and replacement tire sales, but he sees this Triangle currently has fve factories, all of them based in growing to a 70/30 split in favor of replacement sales due to the greater Weihai City area. Ding wants the company to increased vehicle ownership in China. Globally, Ding says the have a sixth production base within three years. He further ratio is 80/20 in favor of replacement sales. He added that says it will not be in China, and it could be obtained through “the challenge for the U.S. market is to get more OE demand.” an acquisition of an existing plant or could be a new facility.

Since 1995, Ding has held a strategic vision that Triangle In early 2015, Triangle announced plans for an initial public must be a global company. He realized that China, as a nation, ofering (IPO). Ding said the IPO application was approved in was not alone, and his company would need to compete on a January 2016, but the company is waiting for the right timing global basis with a complete portfolio. ■

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MTD May 2016

Quik-Link: 800-687-1557 ext. 16125

Focus on industry

Pure Gold (dealers) Continental shares new tires and segments with its Elite

By Bob Ulrich

T

he frst Continental pneumatic passenger tire was built in 1898. Te frst General pneumatic passenger tire was produced in 1915.

Yet more than 100 years later, Continental Tire the Americas LLC is geting ready to compete in two market segments for the frst time. And its Continental Elite Gold dealers are responsible.

“Te feedback from you was we needed to expand our product line,” said Jim Sicking, director of independent dealer sales, to the 310 Elite Gold dealers in Cancun, Mexico, recently. “We are now geting into some markets or some areas that we have not been in in the past.”

Te TerrainContact A/T is the frst Continental all-terrain

tire for crossover vehicles, SUVs and light trucks. Te Grabber X3 is the company’s frst General extreme terrain tire for light trucks and SUVs.

TerrainContact A/T Of the 4.1 million miles of public roads in the U.S., 1.4 million miles are unpaved, according to Joe Maher, product manager for passenger and winter tires.

“It’s a very surprising stat that a third of the roads in the U.S. are not paved, so you really need to have of-road and on-road capabilities.”

Te light truck and SUV replacement tire market represents 70 million tires; 37%, or 26 million tires, fall into the all-terrain category, an untapped market for the Continental brand until the TerrainContact A/T.

Photo at top: The Continental Tire the Americas LLC team (background) recently played host to 310 dealers selling at least 2,000 of its tires in 2015. The dealers (foreground) included, from left to right in the front row: Alta and Hootie Gipson, Gipson’s Tire Pros, Prattville, Ala.; Kevin and Lynn (Julia) Burnett, Day Tire Pros, Canton, Texas; and Butch and Annette Aurora, Whitey’s Tire Service, Brooklyn, N.Y. In the back row are Daren and Emily Day, Day Tire & Auto, Mabank, Texas; and Sheryl and Ricky Stephenson, Blagg Tire & Service, Grapevine, Texas.

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MTD May 2016

“The target consumer is owner of a late model pickup truck or SUV,” said Maher. “In many cases this is a premium ftment... they want a tire that looks like an all-terrain tire and has the capability of an all-terrain tire, but really are very interested in on-road performance.

Tey do the majority of their driving on-road, but they need some of-road capability. Tey value the quiet ride and good wet traction.”

Te TerrainContact A/T was designed using Continental’s TractionPlus Technology, which combines of-road traction (thanks to a very open, high void tread patern) and durability (large stable blocks) with “good road manners,” says Maher.

Te later includes a quiet ride, partially the result of noise blockers in the shoulder.

Te tire will roll out in 20 metric and 15 LT-metric load range E sizes, which cover 80% of the premium all-terrain market, beginning in mid-September. Te metric sizes range from 265/75TR16 to 285/45HR22 XL. Te LT sizes — a frst for the Continental brand — range from LT245/75R16 to LT285/60R20. All sizes are backed by a 60,000-mile limited tread wear warranty.

Te TerrainContact A/T will compete against the Bridgestone Dueler A/T Revo 2, Goodyear Wrangler All-Terrain Adventure with Kevlar and Michelin LTX A/T2.

Grabber X3 and Arctic Te “X3” in the new General Grabber X3 stands for extreme dirt, mud and rock, making it Continental’s frst true M/T tire in the U.S. It will replace the original Grabber, which was “really intended to take us into the of-road market for desert racing and short-course racing,” said Travis Rofer, Continental’s director of marketing.

It also has on-road capabilities. Designed with race-proven 3-Ply Duragen Technology, the new tire is not only cut – and chip-resistant, but also has a long life for a mud-terrain tire.

Te high void shoulder design and self-cleaning evacuation channels provide traction in mud, dirt, sand and gravel.

“For rock, we have multi-angled gripping edges,” said Maher.

“So basically, the tire (provides) traction in every direction.”

In addition, a series of ribs in the shoulder protect the upper sidewall from damage and penetration.

Te tire will be available in 29 sizes beginning in September, broken out as follows: • 16 LT sizes with rim diameters ranging from 16 to 20 inches.

Tey feature an 18/32-inch tread depth.

• 13 fotation sizes with rim diameters ranging from 15 to 20 inches. Tey feature a 21/32-inch tread depth.

Tirteen of the sizes will be available with either black letering or “smooth red leters,” said Rofer. Tat brings the total number of SKUs to 42.

Te General Grabber Arctic is a studdable winter tire for SUVs, CUVs and pickup trucks. It falls between the Altimax Arctic (passenger cars) and Grabber Arctic LT (for full-size light trucks) in General’s winter tire portfolio.

Te tire will be available for the 2016-17 winter season in 15 extra-load sizes featuring the three-peak mountain snowfake symbol.

www.moderntiredealer.com

Top: Crickett and Rachel Labrecque of Silver City Tire Inc. in Oneida, N.Y., channeled Paul Stanley and Gene Simmons of KISS and won the “Dress as your Favorite Rock Star Contest” at the memorabilia-laden Hard Rock Hotel in Cancun, Mexico. Bottom: Continental Tire’s Jim Sicking, left, and Sean McDermaid brought ZZ Top to life.

Sports sponsorships Continental will continue to align itself, and by extension its dealers, with racing, fshing, basketball and soccer in 2016.

In addition to its of-road racing sponsorships, the General brand is the spec tire for the on-road ARCA Racing Series for the frst time this year.

Te company also will continue to participate in IMSA’s Continental Tire SportsCar Challenge, part of the IMSA WeatherTech SportsCar Championship.

“And like every one of our (racing) sponsorships, we not only come in as the ofcial tire, but we also get engaged with the tracks,” said Rofer.

Te General brand also is heavily tied to Major League Fishing, which has a schedule of 13 events in 2016. General is the ofcial tire of the league, and Continental has signed deals with four of the professional anglers.

“We will continue to further our involvement in fshing in the future,” said Rofer. “We believe it’s a great demographic.”

For the 2015-2016 college basketball season, Continental added seven team sponsorships, including eventual champion Villanova. Tat brings the total to 28; Rofer said Continental is looking at adding more teams.

Continental also is the ofcial tire of Major League Soccer and both the men’s and women’s national soccer teams. ■

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Focus on industry

Fun, fun, fun BFG Advantage T/A Sport puts FUN into the everyday drive

By Lori L. Mavrigian

M

ichelin North America Inc. wants to put FUN into consumers’ daily commutes with its new BFGoodrich Advantage T/A Sport all-season tire. And that’s FUN as in Four seasons of traction; Undeniable performance, mile afer mile; and New levels of handling.

Te company recently showed of the tire at the NOLA Motorsports Park in Avondale, La., near New Orleans. It goes on sale in August in 31 sizes ranging from 15 to 18 inches with T, H and V speed ratings. Twenty-three more sizes will be available in March 2017. Tere will be six new sizes not ofered previously (one 16 inch, two 17 inch and three 18 inch).

Michelin is producing the tire in three U.S. plants. It is geared toward a wide variety of sedans, sporty coupes, passenger cars, CUVs and minivans.

“BFGoodrich Tires is a brand that encourages drivers to explore the fun that driving can provide,” says Jon Hausman, marketing manager for BFGoodrich tires. “Te overall message to drivers with active lifestyles, busy family lives

or a combination thereof is simple: You don’t have to setle for merely geting from point A to point B. Because performance is happening with these tires on every drive, you can have a litle fun along the way, every day with the BFGoodrich Advantage T/A Sport tire.”

Kevin Reim, BFGoodrich product category manager, notes that unlike some competitors’ tires, the Advantage T/A Sport’s tread design goes full depth to maintain optimum driving performance. “What the consumer sees when it’s new is basically what he’s going to see when the tire wears out,” he says.

The BFG Advantage T/A Sport delivers driving confdence for “accidental performance drivers,” says the company. It will be available in August.

Latest technology

NOLA Motorsports Park near New Orleans was the venue chosen to introduce the BFGoodrich Advantage T/A Sport all-season tire.

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Te tire has locking 3-D Active Sipe Technology to enhance longevity and performance. Te sipes lock together under the tire’s footprint to provide stability and wet and light snow traction.

Advanced all-season tread compounds and the company’s Agua-Flume technology ofer all-season grip and wet-weather performance.

BFG’s next generation ETEC (Equal Tension Containment) System keeps the tire footprint optimized during cornering and high-speed situations while the g-Wedge sidewall stabilizer

helps to ensure crisp handling and a comfortable ride. A continuous center rib delivers consistent steering response and road feel, while full-depth features help maintain consistent performance and look throughout the life of the tire.

Te company is looking to make it easy for sales people to sell this tire, too, says Hausman. “If you can remember FUN, you can sell the Advantage T/A power line.” It will be ofered at a competitive invoice price with an increased suggested retail price for beter dealer proftability, he adds. Te frst 31 sizes will have 60% market coverage. Te Advantage T/A Sport is part of the company’s “Are You Driver Enough?” marketing campaign.

The tire backed by a 70,000-mile warranty on the T-rated sizes; and a 60,000-mile limited tread life warranty on the H- and V-rated tires. It is pitted against the General Altimax RT43, Hankook Optimo H426, Yokohama Avid Ascend, Goodyear Assurance Fuel Max and Cooper CS5 Ultra Touring/Grand Touring tires, among others.

In 2017 the company will introduce the BFGoodrich Advantage T/A Sport LT in 39 sizes from 15 through 22 inches for SUVs, CUVs and some pickups. ■

MTD May 2016

Quik-Link: 800-687-1557 ext. 16126

Focus on dealers

Greg Fisher (left), a wholesale sales representative for North Gateway Tire, and Darrell Hill, president, celebrate at the grand opening.

Taking part in the warehouse expansion ribbon cutting were Carol Carter, Seville, Ohio, mayor; and Darrell Hill and his sons (left to right) Patrick Hill, vice president of service sales; Jeff Hill, vice president of retail sales; and Mike Hill, vice president of sales.

Wholesale tire distributor North Gateway Tire Co. Inc. in Seville, Ohio, held an open house for the grand opening of its new warehouse addition on Saturday, April 16, which was attended by approximately 300 people from 150 dealer accounts. (Above) The new addition has 82,000 square feet of space and will house the company’s commercial tires.

Gateway to the future Tire wholesaler holds grand opening for warehouse expansion

By Lori L. Mavrigian

T

he wholesale division of North Gateway Tire Co. Inc. in Seville, Ohio, recently held an open house for the grand opening of an 82,000-square-foot warehouse expansion. It was atended by customers from approximately 150 of its independent tire dealership accounts.

Te company broke ground for the addition in April 2015.

Now the building covers 250,000 square feet and houses tubes and tires of all types from small specialty tires to of-the-road.

The new addition will be used to receive and distribute commercial tires, according to Greg Fisher, a wholesale sales representative for North Gateway Tire.

Twenty suppliers had booths at the open house displaying tires, tire pressure monitoring system service, wheels and other products. Tire brands on display included Yokohama, Federal,

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Vredestein, Goodyear/Titan, Multi-Mile, Toyo, Bridgestone, Kenda, BKT, Carlisle, Galaxy, Deestone, Cropmaster and Vercelli, a new brand the company is carrying from American Omni.

Te North Gateway Tire location runs 20 trucks a day distributing products to customers in Ohio, western Pennsylvania, northwest West Virginia, half of Michigan, and parts of New York. Te building now has a total of 15 docks.

It is owned by Darrell Hill, president, in partnership with parent company Dunlap & Kyle Co. Inc. based in Batesville, Miss. Dunlap & Kyle has 16 warehouses with a combined total of nearly 3.5 million square feet.

North Gateway Tire’s frst retail and wholesale location was opened in Medina, Ohio, in 1979 and has 27 tire and service bays. Te Medina location had three warehouse expansions before the company built the Seville location (starting out at 170,000 square feet) to handle all of its wholesale business. ■

MTD May 2016

Quik-Link: 800-687-1557 ext. 16127

TPMS

Hyundai Santa Fe and Santa Fe Sport 2010 – 2016 Te TPMS is not afected by wheel and tire rotation SUBJECT VEHICLES: 2010 – 2016 Hyundai Santa Fe and 2013 – 2016 Santa Fe Sport.

RELEARN PROCEDURE? Yes. SPECIAL TOOLS NEEDED? Yes. A Hyundai GDS (Global Diagnostic System) with the TPMS module.

T

he tire pressure monitoring system (TPMS) on the 2010 – 2016 Hyundai Santa Fe and 2013 – 2016 Santa Fe Sport monitors the air pressure in the four road tires with wheel-mounted tire pressure sensors.

To do this, the system uses a receiver, four radio frequency (RF) tire pressure sensors, two warning indicators on the instrument cluster, and a data circuit to

perform system functions. When the tire pressure is below the allowed threshold or a rapid leak is detected, the low pressure warning light on the instrument cluster will be illuminated. If the system detects a receiver or sensor fault, or if it detects a fault that is external to the receiver or sensor, the TPMS warning indicator on the instrument cluster will be illuminated. If the fault is considered “critical,” the light will stay on throughout the entire ignition cycle.

Te tire pressure sensor operates in two modes: a stationary/rolling mode and a sleep mode. In stationary/rolling mode, the sensor will measure pressure and temperature every four seconds, and measure acceleration every 60 seconds. In sleep mode, the sensor enters a low current consumption state where no measurements are made in order to conserve batery power. All sensors are in this state when new. Te sensor will not transmit unless requested to do so by the initiate command or when the vehicle accelerates to 20 mph (32 km/h).

Pressure warning indicators NOTE: Tire pressure is also dependent on the temperature of the tire. For every 18 degrees Fahrenheit (10 degrees Celsius) increase in tire temperature, tire pressure increases about 1.5 psi (10 kPa). Tire pressure should only be adjusted when the tires are cold (about the same as ambient air temperature).

When the low tire pressure warning light comes on, check the air pressure of all tires and adjust to the specifed cold pressure listed on the vehicle certifcation label (found on the driver’s door or door pillar). If the tire is damaged, repair as necessary. Ensure the warning light goes of (this may take up to four minutes if the tire is not rapidly re-infated).

If the warning light stays on, recheck tire pressure. If tire pressure is OK, turn the wheel a quarter turn and wait another four minutes (the sensor may be in an RF null). If the warning light is still on

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Quik-Link: 800-687-1557 ext. 16128

or if the TPMS warning indicator is lit, there is a malfunction in the TPMS. See the appropriate manufacturer service information.

Reset procedures NOTE: If the tire pressure sensor is replaced, it will need to be initiated. Te TPMS is not afected by wheel and tire rotation. When the low tire pressure warning light comes on, check the air pressure of all tires and adjust to the specified cold pressure listed on the vehicle certifcation label (found on the driver’s door or door pillar). Ensure the warning light goes of (this may take up to four minutes if the tire is not rapidly re-infated).

Tire pressure sensor initiation Auto-learn sensors 1) Every time the ignition is turned on, all sensor locations are verifed and/ or located.

2) If a sensor has been removed, the lack of response will cause it to eventually (may take 10 minutes) be removed from its list of active sensors.

3) When new sensors are added, or wheels are rotated, the system will automatically learn their new locations within 10 minutes afer turning on the ignition if the vehicle is being operated at a speed of at least 12 mph (20 k/ph).

Manual sensor initiation NOTE: In the following procedure, a Hyundai GDS (Global Diagnostic System) with the TPMS module must be used.

NOTE: When four sensors have been learned as road wheels, it is not possible to learn new road wheel sensors on the same ignition cycle.

1) Condition – Ignition ON and Engine OFF. 2) Hold the TPMS module within 3 inches (76 mm) of the sensor valve, read each tire pressure sensor ID in the following order: front lef, front right, rear lef, then rear right.

MTD May 2016

Quik-Link: 800-687-1557 ext. 16129

TPMS

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Figure 1: Registering the tire pressure sensor (one of two).

Figure 2: Registering the tire pressure sensor (two of two).

3) Press the ENTER buton as each tire is illuminated on the screen.

4) Press the WRITE buton afer reading all of the sensor IDs. 5) Connect the GDS to the Data Link Connector (DLC) located under the lef side of the instrument panel. Register the four sensor IDs to the receiver (see Figures 1 and 2).

NOTE: Te TPMS receiver will complete the learn procedure of the new sensor afer the vehicle is driven up to 20 minutes at speeds over 12 mph (20 km/h).

NOTE: For the system to correctly monitor the tires for underinfation, there should be a total of exactly four sensors, one on each of the four road wheel positions. Tere should be no

other sensors in the vehicle since this could cause the system to monitor the wrong sensors or fail to lean a new sensor.

6) Modify any sensor ID and press the [OK] buton.

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.

CAUTION: Ensure that the wheel to be fted is designed for the sensor mount. Tere should normally be a mark to indicate this.

NOTE: If the tire pressure sensor is replaced, it will need to

Quik-Link: 800-687-1557 ext. 16130

MTD May 2016

Quik-Link: 800-687-1557 ext. 16131

TPMS be initiated. See reset procedures. Te TPMS is not afected by wheel and tire rotation.

Tire pressure sensor

CAUTION: Do not use puncture repair fuid, as this can cause the sensor pressure port to block and an incorrect warning to occur.

Removal 1) Remove the wheel and tire assembly.

CAUTION: Avoid tire/tool contact with the valve while demounting the tire.

2) Defate the tire and remove balance weights. Te tire bead should be broken about 180 degrees from the valve side of the wheel. Te bead breaker should not be set too deep.

Demount should end near the valve.

CAUTION: Te valve nut should not be re-used.

3) While handling the sensor with care, remove the valve nut.

4) Discard the valve stem assembly.

Installation CAUTION: Avoid bringing the tire pressure sensor in contact with lubricant. Always handle the tire pressure sensor carefully.

1) Assemble the valve to the sensor, making sure the hex nut is in contact Figure 3: Installing the valve to the sensor. with the metal insert in the sensor body (see Figure 3).

2) Tighten the 7 mm nut with a nut driver to the required torque. See torque specifcations.

3) Ensure that the valve hole and mating face of the wheel are clean. Mount the assembly to the wheel using a standard valve stem puller tool.

4) Lubricate the tire bead (not the rim). Do not use excessive lubrication.

5) Start the tire mounting at about the 5 o’clock position from the valve. Move the mounting tool away from the valve. Avoid tire/tool contact with the valve. Finish with the mounting tool near to the valve.

6) Adjust infation pressure of all wheels. Install the valve cap.

7) If installing a new sensor, initiate the tire pressure sensor.

See tire pressure sensor initiation under reset procedures. ■ Torque specifcations Component Wheel nut

Tire pressure sensor valve nut

Ft.-lbs. (N.m) 65-79.6 (88-108) In.-lbs. (N.m) 35 (4)

Information for this column comes fom Mitchell 1’s “Tire Pressure Monitoring Systems Guide” for domestic and import vehicles. Headquartered in Poway, Calif., Mitchell 1 has provided quality repair information solutions to the automotive industry for more than 80 years. For more information, visit www.mitchell1.com.

For archived TPMS articles, visit www.moderntiredealer.com.

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MTD May 2016

Quik-Link: 800-687-1557 ext. 16133

Products Atturo adds warranty Atturo Tire has introduced a 50,000-mile tread wear warranty and added 11 sizes to the Trail Blade A/T. Atturo says the new sizes for the Trail Blade A/T cover a broad mix of original equipment replacement sizes targeting SUV, CUV and light truck vehicles. The Trail Blade A/T features large shoulder blocks for improved handling and steering response on road, a durable tread compound formulated for long life, and deep sipes for all-weather performance, according to the company. The Trail Blade A/T combines off-road capability with on-road manners.

ATTURO TIRE CORP. Quik-Link: (800) 687-1557, ext. 15170 www.mtdquiklink.com/15170

AAE has new OE-quality power steering pumps Atlantic Automotive Engineering (AAE) says its new aftermarket power steering pumps are reengineered to eliminate design flaws found in the original equipment parts. The company says that means you get a power steering pump that is more durable, with performance that exceeds the OE pump. Every AAE new power steering pump is 100% hydraulically tested under load and inspected to ensure stringent quality control. Depending on the specifc application, many new AAE pumps come complete with the pulley, brackets and reservoirs.

ATLANTIC AUTOMOTIVE ENGINEERING Quik-Link: (800) 687-1557, ext. 15171 www.mtdquiklink.com/15171

Kumho unveils Ecsta PS91 UHP Kumho Tire U.S.A. has introduced the Ecsta PS91, an ultra-high performance summer tire. The PS91 is designed to provide optimal stability at high speeds, reduced road harmonics for a quiet ride, and enhanced dry performance characteristics. Kumho says the new tire features precise handling in wet and dry conditions on and off the track that will satisfy the ultimate super car enthusiast.

The Ecsta PS91 is available in 34 sizes in 18- to 20-inch ftments with a Y speed rating. An additional nine sizes will be released in the second quarter of 2016.

KUMHO TIRE U.S.A. INC. Quik-Link: (800) 687-1557, ext. 15172 www.mtdquiklink.com/15172

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Red Kap expands crew shirt colors Red Kap is now offering its Crew Shirt in two solid colors, black and charcoal. The Crew Shirt was previously available in seven colorblock patterns, including the newly launched charcoal/ orange and black/lime styles. Red Kap says the new black and charcoal versions offer a more traditional alternative to the modern color-block options. Red Kap’s exclusive ripstop fabric is lightweight yet breathable and 75% stronger than other poplin workwear fabrics on the market, the company says. Other features include Touchtex fabric technology that resists stains, retains color and improves moisture wicking to keep the wearer cool and dry.

RED KAP Quik-Link: (800) 687-1557, ext. 15173 www.mtdquiklink.com/15173

Bosch introduces swing arm centerpost tire changer The new TCE 4295 swing arm center-post tire changer from Bosch Automotive Service Solutions services wheels up to 47 inches in diameter and 15 inches in width. Bosch says the new machine combines the effciency of a traditional swing arm with the versatility of a modern center-post to safely handle nearly any wheel and tire combination. A center-post design allows for a wide range of applications and effortless locking with Bosch’s “Smart Lock” center locking system.

Model TCE 4295’s electric turntable runs on 110-volt power, providing the same features as competing machines requiring a 220-volt electrical supply.

BOSCH AUTOMOTIVE SERVICE SOLUTIONS Quik-Link: (800) 687-1557, ext. 15174 www.mtdquiklink.com/15174

Falken Azenis FK450 A/S The Falken Azenis FK450 A/S is Sumitomo Rubber North America’s frst ultrahigh performance all-season tire. The FK450 A/S is specifcally designed for late model premium sport coupes and sedans. Using Falken Tension Control Technology, engineers achieved an excellent balance of handling, high-speed stability and confdent all-weather traction, according to the company. The tire is available in 48 sizes ranging from 16 inches to 20 inches, all backed by a 50,000-mile limited tread wear warranty.

SUMITOMO RUBBER NORTH AMERICA INC. Quik-Link: (800) 687-1557, ext. 15175 www.mtdquiklink.com/15175

MTD May 2016

Quik-Link: 800-687-1557 ext. 16134

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.

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Advertiser

Page

Web site

31 Incorporated

34

16114

www.mtdquiklink.com/16114

31 Incorporated

55

16125

www.mtdquiklink.com/16125

ACDelco

13, 15

ACDelco

24-25

ADVICS North America Inc.

59

16126

www.mtdquiklink.com/16126

Aftermarket Auto Parts Alliance Inc.

51

16124

www.mtdquiklink.com/16124

American Omni Trading Company

23

16109

www.mtdquiklink.com/16109

American Tire Distributors

41

16119

www.mtdquiklink.com/16119

Arnott Inc.

40

16118

www.mtdquiklink.com/16118

Bartec USA

62

16128

www.mtdquiklink.com/16128

Big O Tires

37

16116

www.mtdquiklink.com/16116

BKT Tires USA Inc.

11

16105

www.mtdquiklink.com/16105

Camso

31

16111

www.mtdquiklink.com/16111

Dealer Strategic Planning Inc.

65

16131

www.mtdquiklink.com/16131

Falken Tires

61

16127

www.mtdquiklink.com/16127

Federal Tire

27

16110

www.mtdquiklink.com/16110

Firestone Tire

9

16104

www.mtdquiklink.com/16104

GT Radial

7

16103

www.mtdquiklink.com/16103

Hankook Tire America Corporation

38-39

16117

www.mtdquiklink.com/16117

Huf Group

43

16120

www.mtdquiklink.com/16120

Independent, Innovative, Captive Insurance Co. Inc.

47

16122

www.mtdquiklink.com/16122

K & M Tire Inc.

67

16133

www.mtdquiklink.com/16133

Kenda Tires

IBC

16135

www.mtdquiklink.com/16135

Kumho Tire USA Inc.

5

16102

www.mtdquiklink.com/16102

Mahle Service Solutions

45

16121

www.mtdquiklink.com/16121

Marangoni Tread North America Inc.

21

16108

www.mtdquiklink.com/16108

Mighty Auto Parts

17

16106

www.mtdquiklink.com/16106

MOOG Steering & Suspension

33

16113

www.mtdquiklink.com/16113

Nexen Tire America Inc.

IFC

16101

www.mtdquiklink.com/16101

Nexen Tire America Inc.

63

16129

www.mtdquiklink.com/16129

Nitto Tire U.S.A. Inc.

OBC

16136

www.mtdquiklink.com/16136

Red Kap

48-49

16123

www.mtdquiklink.com/16123

Reliable Int’l Exhibition Services Co. Ltd.

64

16130

www.mtdquiklink.com/16130

SEMA Show

69

16134

www.mtdquiklink.com/16134

Sentury Tire Americas

35

16115

www.mtdquiklink.com/16115

STEELMAN Select TPMS, by JS Products

66

16132

www.mtdquiklink.com/16132

Yokohama Tire Corporation

19

16107

www.mtdquiklink.com/16107

ZC Rubber America Inc.

32

16112

www.mtdquiklink.com/16112

MTD May 2016

www.moderntiredealer.com

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73

Your turn

All you have to do is act naturally Dear Editor: I have complimented Wayne Williams many times on his Counter Intelligence columns. He is a good writer, and not to be a bragger myself, he reinforces everything that I believe in and practice.

His article in the February issue of MTD, “5 tips to improve your likability,” was excellent. Te realistic part is that people need to be warm and positive — and do it naturally, from their heart. Tat is the tough part.

I have said to our crew many times, it’s OK to call a person when you hear that someone in their family has passed away, or send a card to them for their major achievements, such as a son graduating law school.

But I also tell them do not do this unless it feels natural to them. I have gambled when I’m on the phone with strangers.

Sometimes at the end of a conversation, if it feels right I’ll actually say, “I love you, man.”

Nice work, Wayne, and I am a very hard grader.

Billy Eordekian, President 1-800EveryRim.com Pico Rivera, Calif.

Eordekian’s company has a huge inventory of factory original stock OEM steel and aluminum alloy wheels and rims in its 30,000-square-foot warehouse.

Question of the month Each month we ask members of our National Advisory Council a question or questions on a current hot topic. Tis month we asked, “Are tire disposal costs a concern? What do you pay to have your scrap tires removed? Have costs increased in the last year? Is so, by how much? Have you been able to fnd a reliable vendor to remove scrap tires?” Here are some of their responses.

1. It’s not a big issue for wholesale distributors as we do not accumulate many other than possibly adjustment tires. In the marketplace though, it would seem there’s a demand as reliability and consistency are some of the concerns from dealers. Some of the smaller players in the scrap tire removal market seem to have exited the market.

2. No concerns. We pay by the ton and there has been no change. It’s been the same for 15 years.

3. We pay approximately $1,000 for a flled 45-foot trailer.

4. We have used the same scrap tire removal company the last 10 years. Pricing has remained the same, although it did drop about two years ago.

Last month we asked, “What is the best business advice you have ever received? Was it fom a book (which book?) or fom a mentor, fiend or co-worker? “ Here are some responses.

1. A mentor told me, “Sales are great, but sales do not pay the expenses, profts do.”

2. I was quite lucky fnding my wife of 48 years. Her father was a fantastic person, an Italian, who always told me to be patient — especially when negotiating with bankers and suppliers. I’ve done well by heeding that advice in my business career. My favorite business books are “Te One Minute Manager,” by Ken Blanchard and Spencer Johnson, “Puting the One Minute Manager to Work” by Blanchard and Robert Lorber, and “Te One Minute Sales Person” by Johnson. I also recommend Ayn Rand’s “Te Fountainhead,” and, of course, “Atlas Shrugged.” You may fnd it unusual that I would consider her works as books on business, but I think her writings about capitalism and free enterprise are always worth holding onto as part of my own business and government belief system.

3. Being a former Army ofcer, the Army holds a special place in my heart. Te Army has been the premier leadership training organization in our country for the last couple of centuries. Its model is simply this: BE — this is all about your character as a leader and is the foundation to your ability to lead. It gives you the courage to do what is right regardless of the circumstances or the consequences.

KNOW — this is about the knowledge and skill sets you need to be competent as a leader. DO — leaders act. Tey bring together everything they are, everything they believe, and everything they know how to do to provide purpose, direction and motivation.

4. Te best advice I ever received was do not react quickly to email or correspondence or feedback that may be negative or disparaging. Instead, step back, use logic and not emotion and respond accordingly.

5. Do not try to sell someone, create in someone the desire to buy.

We also asked our National Advisory Council what was on their mind. One response was:

Since our business is located in south Louisiana, we hate these low fuel prices. We need the rest of the country to do what they can to get the prices up so we can “drill, baby, drill.”

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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MTD May 2016

Quik-Link: 800-687-1557 ext. 16135

Quik-Link: 800-687-1557 ext. 16136