Prinx Tires produces high-quality consumer and commercial tires in a broad range of sizes, with over 400 different SKUs—all at a price point that leaves room for you to make your margin and your customer to meet their budget.
Combined with our focus on the needs of the everyday driver, we deliver practical performance in a way that stands out from the status quo.
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businesses. Read how the nation’s largest dealers are adapting, beginning on page 22.
Photo: Commercial Tire Inc.
Mike Manges By
DYou’re not alone
MTD 100 DEALERS FACE THE SAME CHALLENGES THAT YOU DO
oes it ever feel like you’re “all alone” — that nobody else understands what you’re going through? It’s easy to feel that way when times are tough. And let’s be honest. Despite what the mainstream media keeps telling us, life — for both business owners and consumers — isn’t exactly a cakewalk at the moment. If it’s any consolation, you aren’t on an island.
Regardless of size, scope and vocation, independent tire dealerships throughout the country are grappling with many of the same challenges.
We found that out when surveying them for the 2024 edition of the MTD 100, which begins on page 40 of this issue.
When we contacted the country’s largest tire dealerships as part of the MTD 100 research process, we asked, “What are the biggest challenges facing your business right now?”
Here are some verbatim responses. While reading them, keep in mind that we contacted both consumer and commercial tire dealers. I’ve also removed the respondents’ names to preserve anonymity.
“One of the biggest challenges ... is the recruitment of qualified employees. As we continue to grow, finding and retaining talented individuals becomes increasingly critical, particularly in an industry already facing a shortage of qualified workers.”
“For the first time in several years, sales is the biggest challenge. We have many customers who don’t have work themselves and are running through fewer tires than in previous years.”
“Tire margins versus national online competitors. Cost of cash flow (while) carrying inventory. Cost of trucks, etc.”
“Car count and economic challenges.”
“Supply chain disruptions continue to cause delays and interrupt accurate forecasting.”
“Shortage of experienced technicians.”
“Keeping our inventory in line with demand. We’re not where we want to be, but have worked closely to get there.”
“Finding opportunities for location expansion.”
“Our biggest challenge is the slow start to fleet purchases.”
“As longtime employees leave, retire or begin to slow down, there isn’t a strong group behind them to step in.”
“High interest rates are costing us more money to operate and (are) slowing our investments in some assets and acquisitions.”
“Current political climate is affecting the overall economy, which is slowing consumer spending.”
“With the rise of technologies like autonomous driving, connected vehicles and advanced driver assistance systems, technicians need specialized training and resources to work on certain vehicles.”
“Technician recruitment and investment.”
“Inflationary environment and staffing.”
“Finding good people.”
“The current economic environment, characterized by inflation and high interest rates, continues to exert pressure on consumers’ disposable income.”
“We are observing a shift in tiers among tire brands, if not a delay in purchasing entirely.”
“Human capital.”
“We continue to battle rising costs. What it costs to open our doors each day is significantly up compared to previous years.”
Do any of the above remarks sound familiar? I bet they do.
These problems aren’t going away anytime soon. So how do you cope in the meantime?
There certainly is strength — and support — in numbers.
Organizations like 20-groups provide the opportunity to swap best practices and benchmark against your peers. (MTD columnist Randy O’Connor’s D2D Development Group comes to mind.)
Though not as many in number as they once were, state and regional tire dealer associations offer a wide range of resources and the ability to discuss mutual challenges and solutions with other tire dealers.
Supplier meetings present another avenue where you can discuss issues and answers.
Many of your counterparts have found assistance through program groups.
And of course, MTD will continue to serve as a forum for the exchange of ideas, concepts, best practices, recommendations and hard-won advice.
“You cannot tell from appearances how things will go,” Winston Churchill said in 1941.
“Sometimes imagination makes things out far worse than they are. Yet without imagination, not much can be done.”
Independent tire dealers are nothing if not imaginative and resourceful.
I have no doubt that your business will continue to grow and thrive, despite the challenges of today and whatever comes your way next. ■
If you have any questions or comments, please email me at mmanges@endeavorb2b.com.
Many MTD 100 dealers cited technician recruitment as a significant challenge.
Photo: Ben Borchert
ModernTireDealer.com
DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER
Stay tuned to MTD’s podcast!
The Modern Tire Dealer Show is available on Apple Podcasts, Spotify, iHeart Radio, Amazon Music, Audible and MTD’s website.
Sign up for Modern Tire Dealer ’s eNewsletters to receive the latest tire news and our most popular articles. Go to www.moderntiredealer.com/subscribe
With its recent acquisition of Caliber Auto Care, Sun Auto Tire & Service Inc. continues to expand its footprint. See how Sun Auto Tire and other dealerships on the MTD 100 are investing in continued growth, starting on page 34.
Sun Auto Tire & Service Inc.
Watching the leaders
Independent tire dealers are always interested in what their tire suppliers are doing and what they’re seeing and planning for in the months ahead. That’s proven especially true with MTD’s exclusive Mid-Year Q&A series of executive interviews, which kicked off online last month and will continue through July. Catch every word at www.moderntiredealer.com and in MTD’s weekly newsletters.
1. Les Schwab acquires CMC Tire
2. ‘Tires’ TV show vulgar, insulting — and thought-provoking?
3. Matthew Cabe to replace Alexis Garcin as Michelin NA CEO
4. Bridgestone Chairman Paoli Ferrari talks 2024 performance, priorities
5. Sun Auto Tire acquires Caliber Auto Care
6. Monro taking action to combat weak tire market
7. Pirelli CEO details growth plans
8. Toyo CEO discusses ‘new normal’
9. Discount Tire tops 1,200 store mark
10. Tire sellout shows ‘greatest monthly gain in three years’
DIGITAL EDITION
Check out MTD ’s digital edition at the top of our website’s homepage.
Chad Hjellming chjellming@endeavorb2b.com (651) 846-9463
MTD READER ADVISORY BOARD
Rick Benton, Black’s Tire Service Inc.
Jessica Palanjian Rankin, Grand Prix Performance
John McCarthy Jr., McCarthy Tire Service Co. Inc.
Jamie Ward, Tire Discounters Inc.
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Modern Tire Dealer (USPS Permit 369170), (ISSN 0026-8496 print) is published monthly by Endeavor Business Media, LLC. 201 N Main St 5th Floor, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI, and additional mailing offices. POSTMASTER: Send address changes to Modern Tire Dealer, PO Box 3257, Northbrook, IL 60065-3257. SUBSCRIPTIONS: Publisher reserves the right to reject non-qualified subscriptions. Subscription prices: U.S. ($81.25 per year). All subscriptions are payable in U.S. funds. Send subscription inquiries to Modern Tire Dealer, PO Box 3257, Northbrook, IL 60065-3257. Customer service can be reached toll-free at 877-382-9187 or at moderntiredealer@omeda.com for magazine subscription assistance or questions.
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Zhongce wants to become top five tiremaker
‘WE ARE WILLING TO COMPETE IN ALL AREAS,’ SAYS SHEN
MTD Publisher Greg Smith was recently in China and had the opportunity to meet with top executives of Zhongce Rubber Group Co. Ltd. (ZC), China’s largest tire manufacturer, including the company’s vice president, Hao Yu (Henry) Shen.
Shen, who did his post-graduate work at Columbia University, said the company achieved revenues of 35.2 billion yuan ($4.528 billion) in 2023, making it the ninth largest tire manufacturer in the world.
The goal is to be a top five producer within five years, said Shen.
But revenue is just one aspect of what Shen is striving to achieve.
To do this, the company continually pushes for efficiency in all aspects of its operation. Shen emphasized that the company does continue to invest heavily in research and development, higher than many competitors.
The company recently announced plans for new factories in Indonesia and Mexico, which Shen said will increase the company’s capacity by 15% when the first stage of each plant is completed.
Shen said the Indonesia plant will be open yet this year, while the Mexico plant should be running in 12 to 15 months.
In both cases, the company is only using 40% of the land it purchased to allow for future expansion.
“To grow, we want to show the world that we are willing to compete in all areas,” said Shen.
ZC currently has nine factories, with eight of them in China and the other plant in Thailand.
In late-2023, the company’s highly automated 5G factory next to its corpo-
rate headquarters in Hangzhou produced its first passenger tire.
In 2022, the company bought Tianjin United Tire & Rubber International Co. Ltd. (Tutric), which manufactures the Tianli tire brand. This producer of OTR and ag tires is an area of growth for the company. Shen said they aim to have 25% to 30% of the company’s current revenues come from the company’s OTR tire, ag tire and rubber track business.
ZC currently has 53% of its sales within China, with the other 47% coming from outside the country. Shen would like to see this change to 40% in China and 60% outside the country within the next three years. Right now, 25% of ZC’s international business is coming from the U.S.
Of the U.S. PLT and TBR business, Shen said the business is split about 50/50 between PLT and TBR. Right now, OTR is a very small portion of the total, but the company is targeting that segment for growth, leading with its Tianli brand.
In looking at how ZC positions its products, Shen said, “Today, people are buying our tires (PLT) because they are good at an affordable price.”
He added that the new generation of ZC tires have won awards in different tests in worldwide.
“We wish to offer customers tier-one and tier-two quality products with tiertwo and tier-three pricing,” Shen said.
Shen does see a big difference with the EV tire buyer, particularly in the fast-growing Chinese market. The vehicles are not cheap, but those buyers do care about price when it comes to buying tires for these vehicles. Toward that end, Shen said the company “is in serious development of several different fea-
“To grow, we want to show the world that we are willing to compete in all areas,” said Zhongce Rubber Group Co. Ltd. Vice President Hao Yu (Henry) Shen, left, with Greg Smith.
tures, especially noise levels and rolling resistance.”
Looking at TBR tires, “fleet managers think the same throughout the world and we must be at the highest level,” said Shen. “We must have the performance of a tier-one brand, but not at the tier-one pricing level.”
ZC sells tires worldwide under the Arisun, Westlake, Tianli, Trazano, Goodride and Chao Yang brands, as well as producing private label tires.
Photo: MTD
Bites Cabe to replace Garcin as Michelin NA CEO
Wholesalers report wins
In MTD’s exclusive State-of-the-Industry Survey, 43% of wholesalers reported their tire unit sales were up by an average of 14.3% during the first quarter of 2024. More than half — 52% — said their dollar sales increased by an average of 9.36% during the period.
Sun Auto Tire expands
Sun Auto Tire & Service Inc. has expanded its presence in Texas via the acquisition of 33 Caliber Auto Care locations. The facilities previously were owned by body shop giant Caliber Collision.
Bosch store opens
Bosch Auto Service recently opened its first franchise location — a store in Salinas, Calif. The store, Bosch Auto Service Salinas, is the first location in the new Bosch Auto Service franchise program. It’s owned by 50-year auto service veteran Jim Adams.
Leeds West buys stores
Leeds West Groups has purchased sole ownership of six Big O Tires locations in Texas. The stores include four in San Antonio, one in Leon Valley and one in Selma.
Distribution Stox grows
Distribution Stox is acquiring the passenger and light truck distribution division of Techno Pneu Inc. The added business will help Distribution Stox expand in the eastern regions of Quebec.
Rubber Inc. adds capacity
Rubber Inc. has moved its Chicagoland headquarters and warehouse to a larger space in Romeoville, Ill., which the company says will allow it to expand its capacity.
Curlee gets promoted
Tire Discounters Inc. has named Charles Curlee senior vice president and chief operating officer. Curlee started with Tire Discounters seven years ago.
Michelin North America Inc. will get a new president and CEO, effective Oct. 1, 2024, when Matthew Cabe replaces Alexis Garcin.
“Matthew has represented the voice of Michelin customers with dependable passion in our organization for more than 19 years, along with a leadership approach that directly reflects the Group’s core values,” says Scott Clark, executive vice president of automotive, motorsport and two wheels, supervising Michelin’s Americas Regions.
“His prior experience leading businesses in both North America and globally will facilitate the Group’s continued growth and success in this important region.”
Cabe succeeds Alexis Garcin, whose next position within Michelin will be announced at a later date.
As president and CEO role, Cabe will be responsible for all key customer-facing functions of Michelin North America, including the sales and marketing, services and solutions, quality and supply chain units, along with other functions, such as corporate and business services, communications, finance, personnel, information technology and legal, according to Michelin officials.
Concurrent with his new appointment, Cabe also joins the board of the U.S. Tire Manufacturers Association.
“I am confident in the future of our company as we continue to focus on bringing our sustainable mobility strategy to life — the critical balance of customer centricity, financial results, respect for the environment and empowerment of our people,” says Cabe. “This is an exciting opportunity to work with our team in the North American region to serve our customers and drive the business forward.”
Since 2021, Cabe has served as senior vice president of the Michelin Group’s automotive regional brands business line, which is based in Budapest, Hungary. From 2017 to 2021, he served in a number of marketing leadership positions within Michelin’s North American passenger car and light truck business.
“Across his 19-year tenure with Michelin, he has held various leadership roles in engineering, manufacturing, marketing and other commercial functions in North America and at the global level,” according to Michelin officials.
Gray’s Tire opens seventh location
Gray’s Tire & Service Center Inc. celebrated the opening of its seventh location in Clanton, Ala., with a ribbon-cutting ceremony attended by local dignitaries, community members and staff.
The new location offers services, such as tire replacement, wheel alignment, brake services, oil changes and comprehensive vehicle inspection and others.
Gray’s Tire & Service Center Inc. has opened a store in Clanton, Ala.
Photo: Gray’s Tire & Service Center Inc.
“We are thrilled to open our seventh service center here in Clanton, Ala.,” says David Gray, founder and CEO of Gray’s Tire.
“This expansion reflects our commitment to providing the highest-quality service and convenience for our customers. We look forward to continuing our tradition of excellence and supporting the community with all their automotive needs.”
Gray’s Tire & Service Center has been serving the central Alabama area for more than 26 years.
Matthew Cabe (pictured) will replace Alexis Garcin as Michelin North America Inc.’s president and CEO in October.
Photo: Michelin North America Inc.
A LONG WAY TOGETHER
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NetDriven expands
Bites Les Schwab acquires CMC Tire
Net Driven has acquired CarCareCONNECT. The acquisition gives CarCareCONNECT customers access to Net Driven’s suite of digital storefronts and marketing solutions, including industry-tailored websites, search engine marketing, social media management and reputation management.
Hankook wins OE fitment
Hankook Tire America Corp.’s iON evo electric vehicle (EV) tire is now original equipment tire on the latest version of the Porsche Taycan. The EV tire is derived from Hankook’s iON race tire and has been ISCC PLUS-certified for sustainability.
Pre-Q hits the road
Representatives from Pre-Q Galgo Corp. and officials from several tire dealership recently promoted the value and quality of retreads during the Tennessee Association of Pupil Transportation show in Pigeon Forge, Tenn.
OTR Solutions has portal
OTR Engineered Solutions has launched a new customer portal for online ordering. The site, otrb2b.com, gives aftermarket customers the opportunity to place orders any time of day.
Caterpillar picks Conti Continental Tire the Americas LLC has expanded its partnership with Caterpillar Inc. with the approval of its RDT-Master OTR tire for Caterpillar truck machine models. The range includes three tire sizes and spans several Caterpillar fitments.
Yokohama
goes green
Yokohama TWS is combining the use of renewable resources with advanced tire production techniques to reduce the carbon footprint of its tires. Products feature a mix of bio-based and recycled materials, as well as casings that support retreading.
Les Schwab Tire Centers Inc. has acquired CMC Tire, a commercial tire dealership with 11 locations throughout Utah, Nevada and Colorado.
CMC Tire, which was founded by Michael Morast and Tommy Servine in 2014, also operates a Continental retread plant in Hurricane, Utah.
The dealership “brings particular expertise in the commercial, mining and construction fields,” according to Les Schwab officials.
CMC Tire will continue to operate as an independent business using the CMC Tire brand under Les Schwab’s ownership.
“CMC Tire is a high-quality company with a fantastic track record and impressive growth over the last 10 years,” says Les Schwab Tires CEO Mike Broberg. “We look forward to continuing that growth and achieving new things as a result of the strength of our combined team.
“We are two customer-centric brands coming together,” he adds. “We share a culture of excellent service and a commitment to supporting and creating opportunities for our employees. This is an exciting opportunity to expand our commercial business alongside our continued retail growth.”
“After 10 years of successful expansion, the time was right for new ownership”, says Morast. “With more than 70 years of its own successful growth, Les Schwab Tires has the resources and knowledge to fuel the next stage of growth for CMC.”
Straightaway Tire names new CEO
O2 Investment Partners, the owner of Straightaway Tire & Auto, has hired John Teddy to be Straightaway Tire’s new CEO.
Teddy joins the company “with over 15 years of experience at industry-leading consumer retail and services brands,” according to a statement from O2 Investment Partners.
Most recently, he served as president of Take 5 Car Wash, a division of Driven Brands. O2 Investment Partners’ Joe Vallee says that Teddy “is a proven leader with considerable experience scaling auto service businesses and will be instrumental to our next phase of growth.”
VIP Tires opens a new store
VIP Tires & Service has opened its newest location in Brockton, Mass.
The company held a grand opening and ribbon-cutting ceremony on June 18.
“At VIP Tires, we’re committed to going the extra mile for the communities we serve,” says Tim Winkeler, president and CEO.
“This means fostering a well-educated workforce, creating local jobs and ensuring the safest driving experience possible. By partnering with local educational programs and offering cutting-edge technology, we believe we can make a real difference in Brockton.”
The new location covers more than 6,000 square feet with eight service bays and will create eight to 10 new jobs.
With the addition of CMC Tire, Les Schwab Tire Centers Inc. has just under 500 company stores.
Photo: Les Schwab Tire Centers Inc.
VIP Tires’ new location spans more than 6,000 square feet and includes eight service bays.
Photo: VIP Tires & Service
TIA training continues
Bites Tube & Solid Tire doubles warehouse count
The Tire Industry Association Inc. (TIA) will offer its Advanced Automotive Tire Service Instructor 400 level class in August, October, November and December 2024 in Seattle, Wash., Columbus, Ohio, Charlotte, N.C. and Baltimore, Md., respectively. Registration details are available on TIA’s website.
Scott’s U-Save expands
Scott’s U-Save Tires & Auto Repair has acquired Knight Automotive in Crown Point, Ind. The Chicago, Ill.-based dealership now has two stores in Indiana for a total of four locations across its footprint.
Chapel Hill Tire honored
Two Chapel Hill Tire locations have earned the National Institute for Automotive Service Excellence (ASE) Blue Seal of Excellence. To achieve the honor, at least 75% of a shop’s technicians must be ASE-certified.
RNR celebrates dads
RNR Tire Express offered a Father’s Day grand prize to one dad and his family that included an all-expenses paid trip to a NASCAR race.
AACF leader retires
The Automobile Aftermarket Charitable Foundation has announced that Joel Ayres, its executive director, retired at the end of April after more than nine years with the organization.
Hankook attends expo
Hankook Tire America Corp. displayed its full line of electric vehicle (EV) tires at the recent Electrify Expo Long Beach event. The tiremaker also sponsored the event’s Demo District, which provided hands-on experiences with EVs.
Gray leads Goodyear HR
Nicole Gray has replaced Gary VanderLind as chief human resources officer at Goodyear Tire & Rubber Co.
Tube & Solid Tire Ltd. has rebranded and is dba Dobermann North America. And the company is in expansion mode, as the second of two new warehouses began shipping products to tire dealers at the end of June.
Dobermann North America opened this distribution center, which is located in Davenport, Iowa, in April.
Photo: Dobermann North America
Tony Garrett, vice president of operations, told MTD that the new warehouses — in Davenport, Iowa, and Greenville, S.C. — both represent new markets.
“We decided to expand due to the recent challenges of high freight costs, freight carrier issues and demand on quicker turnaround times from our customer base. We believe we can add business in each new market by being closer to those areas.”
The Davenport location is open for business and spans 20,000 square feet. Garrett notes it is outfitted with tall, five-shelf racks that reach to the ceilings, which “should provide us a stocking opportunity of $3 million in inventory.”
The Greenville location was adding inventory to its 40,000 square-foot space in June and should hold between $5-6 million in inventory, he said.
Both sites will eventually stock the company’s full product offerings, which include tires for K9 lawn and garden, ATV, UTV, skid steer, forklift and construction applications, as well as bias-ply farm tires, bias trailer tires and radial and all-steel trailer tires.
The warehouses will also include the Dobermann lineup of solid forklift tires, solid skid steer tires and solid OTR assemblies, as well as butyl and natural rubber tubes.
Garrett said both warehouses provide expansion opportunities in surrounding states.
“We believe the new Davenport market location will provide an opportunity to serve a broader area in the Midwest, which will include Iowa, Nebraska, Minnesota, Wisconsin, North Dakota and South Dakota, for example.
“As far as (the) Greenville market, we will be able to extend into Virginia, West Virginia, Maryland (and) Pennsylvania, which are new growth opportunities.
“Market conditions are excellent for our K9 and Dobermann product lines because of rural areas that have a need for our specialty tire/tube solutions.”
Previously, customers in any of those markets would have been served by the company’s existing warehouse in San Antonio, Texas. (The company has a fourth warehouse in Hialeh, Fla.) “Our main concern from new customers would be shipping lead times and freight minimum requirements.”
Dobermann North America is part of Covencaucho, a company in Venezuela that manufactures retreads and has 30 retail and commercial outlets in that country.
Garrett said the company’s K9 line of products has grown in recent years to represent more than 50% of overall sales.
“We have focused our sales efforts in recent years for the agricultural market to achieve growth. I think over time we want to stock the popular SKUs in all of our lines and streamline our inventory to achieve better, faster turns of the lineup.
“I see ATV/UTV as (a) real focus because of how many areas are legalizing (in-town, on-street use.) We have a special heavy duty run-flat ATV tire that has been a fantastic tire for our customers since we introduced it. The goal is to market it and get the word out to more dealers and end users so they can benefit from that technology.
“In regards to inner tubes, we have always had the strongest warranty in the business and our warranty ratio is less than 0.10%,” said Garrett.
As for the current market, Garrett said business has picked up since the middle of March.
“Our 2024 plan is to make sure we serve our existing customers better and create opportunities for new customers by the efficiency of our warehouses, which are equipped with real-time technology. The time and effort are critical to (make) our inventory ordering, receiving and shipping so streamlined that it will be a huge sales advantage.”
—Joy Kopcha
Bites
Omni United goes racing
The Radar brand from Omni-United (S) Pte. Ltd. will partner with Milhausen Motorsports for the Amsoil Off-Road Championship 2024. The Milhausen team will compete in eight races during the season.
McCarthy moves location
McCarthy Tire Service Co. Inc., which is based in Wilkes-Barre, Pa., recently relocated its Williamsport, Pa., location to a larger facility. McCarthy Tire closed its former location in Williamsport.
New World Class tech
A seventh technician at VIP Tires & Service Inc. has earned World Class Technician status from the National Institute for Automotive Service Excellence (ASE). John Bemis works at the Bangor, Maine, VIP location.
Sun adds TGK locations
Shortly before press time, Sun Auto Tire & Service Inc. opened two TGK Tire & Auto locations in Minnesota. The stores are in Lakeville and Savage and join a TGK Tire & Auto store that opened in Arden Hills, Minn., two months ago.
Tyrexpo draws big crowd
More than 4,000 people from 72 countries recently attended the Tyrexpo Asia event in Bangkok, Thailand. The expo included more than 90 exhibitors. The 2025 version of the show is scheduled to take place in Singapore.
Pirelli teams with Audi
The new Audi RS 4 Avant has two tire options: the Pirelli P Zero Trofeo RS and the Pirelli P Zero Corsa. The latter tire is equipped with Pirelli Cyber Technology, which features sensors.
Goodyear unveils service
Goodyear Tire & Rubber Co. has introduced its “tires-as-a-service” program for commercial trucking and delivery fleets.
Nokian completes ramp-up at Tennessee facility
Nokian Tyres Inc. has marked the completion of the five-year ramp-up process at its production facility in Southeast Tennessee and has opened a new distribution center there.
The 350,000-square-foot warehouse can hold hundreds of thousands of tires produced at the Dayton, Tenn., factory, which first opened in October 2019 and began commercial production the following January. It expanded operations in 2020 and has since added light truck tire production and increased capacity.
Nokian ships tires from the finished goods warehouse in Dayton to its nine-warehouse network across North America. All-season and all-weather tires are made in the Dayton factory and are exclusively distributed to North American customers.
“The opening of our finished goods warehouse marks the completion of a five-year growth process that took us from a 60-member launch team to a 500-colleague workforce,” says David Korda, Dayton factory operations director for Nokian.
“We could not have reached this point without great dedication from our employees, and we are also grateful for the support we have received from the community, our customers and our colleagues around the globe.”
The Dayton factory possesses ISO 9001, 14001 and 45001 certifications for quality, sustainability and safety.
“Nokian Tyres has made North America a priority and the Dayton Factory is the center of those efforts,” says Lauri Halme, vice president of passenger car tires for Nokian.
Former Firestone executive dies
Former Firestone Tire & Rubber Co. executive Kimball Firestone has died. He was 90 years old.
The grandson of Harvey Firestone, he was born in Los Angeles, Calif., to Leonard Firestone and Polly Curtis Firestone in 1933. Leonard was president of Firestone’s California division at the time.
After earning a degree from Stanford University, Kimball served in the U.S. Army and joined Firestone in 1964 at the company’s Akron, Ohio, headquarters.
Starting in real estate and finance, he moved to Firestone’s Washington D.C. government affairs office in 1969, becoming manager of government affairs the following year and then vice president of government relations in 1973.
Kimball served on Firestone’s board from 1974 through 1988, when the company was acquired by Bridgestone Corp.
He also served as president of his family’s Firestone Foundation from 1974 until 1983.
While an Akron resident, Kimball was active in a number of community organizations, including the Akron Child Guidance Center, the YMCA, Junior Achievement of Akron and other groups.
He continued his extensive community involvement after moving to Maryland, where he resided until his death.
Kimball is survived by his daughter, Carey (Tim) Romer, and sons, William Curtis (Terrie) Firestone, Leonard (Nicole) Firestone and Christopher (Whitney) Firestone; Laurie Firestone; 13 grandchildren and two great-granddaughters. He was preceded in death by his daughter, Kimberley.
Funeral services took place on June 13.
Nokian opened its U.S. plant with 60 employees. The factory now employs more than 500 people.
Photo: Nokian Tyres Inc.
The late Kimball Firestone held a variety of positions at the tire manufacturer his grandfather founded.
Photo: Bob Troyer
Numbers ThatCount
Relevant statistics from an industry in constant motion
23%
Share of tire retailers who said unit sales increased by 10% in the first quarter
Source: MTD State-of-the-Industry Survey
10.8%
The share of EVs among all new vehicle registrations in Canada
Source: Statistics Canada
New LT metric tire sizes introduced in 2023
43% Tire dealers who pay their technicians by the hour
Source: MTD Tire Dealer Automotive Service Study
62%
Tire dealerships that are single-store operations.
Source: MTD Facts Issue
MTD
Photo:
Source: Tire & Rim Association
Photo: MTD
Photo : MTD
Photo: MTD
Photo: Pirelli Tire North America Inc.
John Healy By
ORetail sellout starts to soften
CONSUMERS CONTINUE TO TRADE DOWN
ur recent check-ins with tire dealers indicate that retail sellout trends were somewhat softer in May 2024, following a robust April. Independent dealers highlighted average sellout declines of 1.3% in May compared to gains of 5.1% in April, with trends flat-to-slightly-down during the first quarter of 2024.
Looking more closely at volume for the month of May on a regional basis, the Midwest and the Northeast saw negative volumes. Other regions saw flat or positive volume trends, with the Southwest seeing the strongest trends, up slightly year-over-year.
From our view, it appears that the changing of the seasons in much of the country in May and April brought consumers into shops for tire replacement following a period of deferment.
Given volatile industry conditions due to cost inflation and other macroeconomic factors, we look at several data points to access the health of automobile travel demand, which correlates to tire usage and wear.
Looking at miles driven over the last month, which has a significant correlation with the need for a new set of tires, trends were down low single digits during May, following a flat-to-slightly positive first quarter. More specifically, our Miles Driven Momentum Index registered a 1.2% year-over-year decline in May, which followed a 4% decline in April.
While on the surface this may appear troublesome, we note the month of May was up against a difficult year-ago comparison, as May 2023 miles driven grew by a healthy 3.2%. The trend in May remains above pre-pandemic levels. Thus, the month’s miles driven data is largely a function of difficult comps, rather than the start of a decline.
RAW MATERIAL TRENDS
The cost of raw materials to make a basic replacement tire grew 10.2% year-over-year in May and was up 0.7% from April levels. This follows a 3.1% year-over-year increase during the first quarter.
Our raw material index fell 9.7% in 2023 from 2022 levels, while our index is up 5.2% on a year-to-date basis in 2024.
Given the rapid price deceleration in 2023 following two years of price increases, we are not surprised to see raw material costs moderate and increase slightly on a year-over-year basis. In fact, we see this stability as a positive for the tire industry given the volatility experienced since 2020.
When examining the landscape from a longer-term view, we have heard of multiple dealers experiencing price decreases and promotional updates from several tire manufacturers, which we did not expect but were not entirely surprised to hear, given year-over-year raw material price declines in 2023.
We hear that tier-two and upper tierthree manufacturers are aggressively
chasing tier-three and tier-four products in an attempt to remain cost-competitive in a consumer trade-down environment.
We note that as we see price decreases alongside consumer trade-down, there is a risk to some manufacturers’ profitability.
TIER-THREE IN HIGH DEMAND
Respondents to our latest survey point to tier-three brands as the most in-demand from consumers in May 2024. This is different from our observed long-term trend, as tier-two brands have historically been the most in-demand segment.
Tier-two brands moved into second place in our tier rankings during May, while tier-one brands remained in last place during the month.
This is consistent with the trend that closed 2023 as tier-one brands placed last for six consecutive months from September 2023 through January 2024.
We believe the May 2024 result is an indication of the type of tire buyer in the marketplace, as customers are trading down to less-expensive tires for the summer months.
To us, this aligns with tier-two and tier-three brands being among the most in-demand during May, as consumers who have deferred necessary auto maintenance re-enter the marketplace with fewer tax refund dollars left over and opt for more value-oriented tires.
While our tire tier rankings can be volatile from month to month, we continue to expect tier-two brands to be the most in-demand segment on a long-term basis as consumers continue the trend of attempting to strike a balance between cost and performance. ■
SOURCE: NORTHCOAST RESEARCH ESTIMATES
John Healy is a managing director and research analyst with Northcoast Research Holdings LLC, based in Cleveland, Ohio. Healy covers a variety of subsectors of the automotive industry. If you would like to participate in the monthly dealer discussions, contact him at john.healy@ northcoastresearch.com.
NO QUICK FIX
MTD 100 DEALERS
FACE COMMON, COMPLEX CHALLENGES
Mike Manges By
From employee recruitment and retention to the rising cost of — well, just about everything — stacked on top of many other issues, the nation’s largest tire dealerships are not immune to the challenges that impact their smaller counterparts.
Leeanne Bolger, director of marketing for CJ’s Tire & Automotive, an 18-location dealership based in Birdsboro, Pa., echoes the concerns of many MTD 100 dealers when she says that supply chain, while improving, remains a challenge.
“It’s definitely gotten a lot better since COVID-19, specifically when we’re talking about imports, but at least in our area, we’re still having issues with everything that’s going on in the Red Sea” and other parts of the world, she explains.
“One of our biggest issues is we have so many tires that we’re having to hold them at port, which is costing a lot of money. We have so many tires on order, we’re unable to take them.
18-store dealership based in Birdsboro, Pa., is addressing the challenge of employee retention by investing in its staff. “When we get ahold of employees, we try to build careers for them,” says Leeanne Bolger, the company’s director of marketing.
Photo: CJ’s Tire & Automotive
Barre, Pa.-based McCarthy Tire Service Co. Inc. has had “to just get back to the basics of Sales 101,” says Daniel Horn, the dealership’s vice president of sales. “Just because you answer the phone and have the product doesn’t mean you’re going to sell the tire anymore.”
Photo: McCarthy Tire Service Co. Inc.
“I know it’s not just us,” she continues. “We have a lot of other tire companies calling us and saying, ‘Hey, we have too many tires and we can’t facilitate them in our warehouse. Would you be willing to take any?’
“We’re retail and wholesale. We’re hybrid. So we have a lot more tires coming in.” (In addition to its 18 retail stores, CJ’s Tire & Automotive has “seven-and-a-half” distribution centers, including a busy mixing warehouse, notes Bolger.)
Consumer trade-down to less-expensive tires is another trend that has changed how CJ’s Tire & Automotive does things.
Due to budget constraints and other issues, “typically, the tier-one customers coming in are shifting to tier-two and we see a lot of tier-two customers shifting to tier-three. That presents a challenge for us,” specifically when it comes to achieving targets set by bigger suppliers’ “share of account” programs.
“It makes it harder to hit the programs when consumers are coming in and tiering-down to tier-two or tier-three,” says Bolger.
Ever-evolving vehicle technology has emerged as a significant challenge. Bolger says vehicles are becoming more complex and technicians need specialized training to work on them.
This includes electric vehicles (EVs) and cars equipped with sophisticated advanced driver assistance systems (ADAS.)
CJ’s Tire & Automotive has been able to obtain training for its technicians, “but it’s costly.”
The dealership also has invested “in an ADAS machine,” which came at a significant cost, says Bolger, who adds that ADAS service is “expensive for the consumer, as well.”
Another challenge for CJ’s Tire & Automotive is employee retention. “When we get ahold of employees, we try to build careers for them. We don’t have a high turnover rate for salespeople or techs.
“We fully pay for their training — any type of training they want. We do tool allowances. We have all types of incentives. We’re also trying to make sure they’re being paid correctly. But I think the main thing we try to do is that when they start here, we build a career path for them, so they know this isn’t a dead-end job.”
Finding new technicians is also a challenge for Holyoke Tire Group, a 15-outlet dealership that’s headquartered
‘A lot of guys, as they hit their late-50s and early-60s, are bailing when they can. And we’ve put in good retirement systems, so they can.’
Pete Kearing, president, Holyoke Tire Group
in West Springfield, Mass., especially as veteran workers “age out” into retirement, according to Pete Kearing, the company’s longtime president.
“Replacing the aging workforce is a big problem right now,” he says.
Holyoke Tire has lost “several key guys” over the last few years. “A lot of guys, as they hit their late-50s and early-60s, are bailing when they can. And we’ve put in good retirement systems, so they can.”
Kearing, who says he has no plans to retire, is finding replacements by “bringing guys up through the ranks. But it’s still a tough, tough business. It’s a lot of work.”
Managing employee turnover is a universal concern, says Daniel Horn, vice president of sales at Wilkes-Barre, Pa.-based McCarthy Tire Service Co. Inc.
He cites road service as being a particularly tough job, as technicians are “typically working in either hot environments or cold environments, rain, snow — you name it. And it’s a job that takes a long time and (a lot of) onsite training to get techs up to speed on how to do it and how to do it safely.”
Price hikes and in some cases, decreases from tire manufacturers have had a consequential impact on McCarthy Tire Service’s business over the last few years, according to Horn. Supply fluctuations have proven to be challenging, too.
“When you compare it to prior years, there were pricing changes and pricing realignments and that made it difficult to operate,” he explains. “When prices go up, you don’t have to worry about it as much because the average cost is lower, but when prices come down, your average price is higher than what you’re buying it at. That creates a lot of challenges for us as dealers to try to create sellout to customers.
“If you go back to the end of 2022 and the beginning of 2023, product became
one of the challenges they have is uncertainty, not only in the market, but because of the election year,” says Adrian Rodriguez, vice president of marketing and retail sales for Meridian, Idaho-based Commercial Tire Inc.
financial position, but we still have to go to the bank when we want to grow,” says Logan Wilks, vice president of Albertville, Ala.-based Wilks Tire & Battery Service, which acquired two stores and built a new location within the past year. “Inflation has put the brakes on things just a little bit.”
Photo: Wilks Tire & Battery Service
much more available. Tires that we had ordered (long before) started showing up and if you didn’t catch it quickly enough, you had a lot of product in stock that wasn’t moving at the clip it had been.
“Manufacturers would come in and (do) what they called ‘pricing realignments’ and would bring certain SKUs and sizes down. And as much as that helped to a certain point, you’re not protected on the backside. So we now had product in our inventory that was substantially overvalued. It was just one of those headwinds.
“This year, everything kind of tightened up,” which means the McCarthy Tire Service team has had “to just get back to the basics of Sales 101,” says Horn. “Just because you answer the phone and have the product doesn’t mean you’re going to sell the tire anymore.”
Looking back on the first half of 2024, “I think every dealer would agree that the first quarter was not the best quarter. It wasn’t bad — just not what we’ve come to expect over the last couple of years. I think we’ve seen a little bit of an uptick” since then, “but still not where we need it.
“Also knowing that it’s an election year, there always seems to be a little bit of a lull,” says Horn, who also cites “the threat of tariffs and how that’s going to shake out” as additional concerns. “We’re very optimistic that we’ll have a good year as a company and as an industry. It’s just not at the increased rate we’ve seen over the last couple of years.”
“The market has been soft,” says Adrian Rodriguez, vice president of marketing and retail sales for Commercial Tire Inc., which is based in Meridian, Idaho, and has 52 outlets.
“Our expectation is that it will pick up. Whether that makes up for the first half of the year, I think that’s to be determined. As we talk to our accounts, I think one of the challenges they have is uncertainty, not only in the market, but because of the election year.
“We’ve talked to some of our big accounts and they’ve said, ‘We’re going to do maintenance-level purchasing until we know what’s next,’” he says.
Fortunately, the region where Commercial Tire operates “is still growing, so we have an advantage. People are moving to Idaho. People are moving to Utah, which is putting in what they call ‘inland ports’ — basically, massive distribution hubs. So there’s a lot of opportunity,” especially
‘What we’re seeing now, especially the large fleets that have the resources, is that their finance people are putting their thumbs down on some stuff. They’re not doing the big bulk purchases that they were a year ago. They are managing their tire programs more stringently.’
Logan
Wilks, vice president, Wilks Tire & Battery Service
on the commercial truck tire side of the dealership’s business.
“We’ve seen an uptick in (sales of) Bandag retreads. And that value proposition is looking a lot better... the (ability to) retread a tire two or three times.”
Like other MTD 100 dealerships, Commercial Tire has witnessed a consumer “downshift” to less-expensive brands, “from tier-one to tier-two and from tiertwo to tier-three. I think there’s more flight from tier-two to tier-three.
“What we’re seeing in our market — and all of this is market-specific — is that if you’re a tier-one buyer,” you will continue to buy tier-one tires, “but tier-two buyers are downshifting to tier-three,” he notes.
“The thing that has supported that shift is the quality of tier-three tires. The quality has come up so much that the lines are blurred between tier-one, tier-two and tier-three, in my opinion. We’ve definitely had to reposition our product line to meet the market.
“Previously, we didn’t sell a lot of opening price point tires,” says Rodriguez. “We didn’t have a big product line offering. But as we’ve seen that shift, we have now brought in a broader line to meet those needs and in fact, for us, that’s been a big win. And when you look at tire units, we’re actually up year-over-year.”
Like many of his counterparts, Logan Wilks, vice president of Wilks Tire &
Battery Service, an 11-outlet dealership that’s based in Albertville, Ala., is keeping an eye on the general political situation, including this November’s presidential election.
“A lot of people say they could care less but at the end of the day, it’s affecting the stock market,” he says. “It’s affecting investment. It’s even affecting the central bank and how it’s manipulating money. It’s a big deal and it just trickles down to us, the companies we sell to and even to the end user.”
Trucking fleets, in particular, are carefully managing their expenses. “What we’re seeing now, especially the large fleets that have the resources, is that their finance people are putting their thumbs down on some stuff. They’re not doing the big bulk purchases that they were a year ago. They are managing their tire programs more stringently.
“A lot of fleets sometimes forget that casings have value, but now they want to make sure they have accountability on their casings. That’s something we didn’t
see during the fast-paced years of 2021 and 2022.”
Other economic factors, like inflation, are influencing Wilks Tire & Battery’s expansion plans. In the past year, the dealership acquired two stores and built a new one. All required substantial capital investments.
“We’re not sitting on a bunch of cash. We’re blessed to be in a good financial position, but we still have to go to the bank when we want to grow.”
“Inflation has put the brakes on things just a little bit. It’s also making us more conscious of our inventory. Our philosophy is, ‘If you don’t have it, you can’t sell it.’ We still believe in keeping things in stock, so it’s causing us to watch our inventory a little more closely.
“Obviously, commercial tires cost a lot more than consumer tires. The vast majority of over-the-road fleets” that Wilks Tire & Battery services “are not buying that tier-one product anymore. They just
Brandon Burt, vice president of corporate development for North Salt Lake, Utahbased Burt Brothers Tire & Service Inc., which has 24 stores, says his company’s most significant challenge is balancing “smart growth with the high caliber of people we need.”
Photo: Ben Borchert
Employee development isn’t easy
How Sun Auto Tire approaches this task
With more than 400 locations, Sun Auto Tire & Service Inc., which is based in Mesa, Ariz., is one of the five biggest dealerships on the MTD 100. Despite its size, Sun Auto Tire says finding qualified technicians is a challenge.
“It’s not a new dynamic,” says Chris Ripani, the company’s chief operating officer.
“But it becomes a more exponential dynamic as we grow and the talent pool continues to shrink.”
The increasing complexity of vehicles only compounds the problem, he notes.
“What it means to be a technician today is different than what it was 40 years ago. There’s a lot more variation to vehicles.
“There’s more diagnostics — and a lot more specialization and advanced tools required.
“Finding someone who has the mechanical skill set and wants to invest in themselves is not an easy task.
“Companies that have great technicians hold onto them dearly and it’s one of the biggest industry challenges for recruiting.”
Employee retention also is crucial, says Ripani. “One of the things we’re doing is investing in training programs and processes.
“We created my Sun University,” an online and inclass program that was introduced last year.
“It’s designed around building learning tasks by role for each key role within the company.
“It outlines the learning path we want them to take and the content we’ve assigned to each role.
“We’ve designed it to ensure our people can continue to increase their skills while investing in their career development.
“We’ve also launched a system called SunPro. It’s our way of doing things in the back of the shop.
“It’s all about the quality control of our service standards and how we build an operating model to do preventive maintenance service, repair and tire replacement consistently across our entire network.
“In addition, it outlines our training templates that we then build into Sun University,” he adds.
Sun Auto Tire & Service Inc. introduced Sun University last year. The program includes online and in-class courses.
Photo: Sun Auto Tire & Service Inc.
Both Sun University and SunPro are employee development programs.
Photo: Sun Tire Auto & Service Inc.
can’t pay $600 to buy a steer tire. In the commercial world, it’s becoming very challenging to push the top-tier products.”
Brandon Burt, vice president of corporate development for North Salt Lake, Utah-based Burt Brothers Tire & Service Inc., which has grown to encompass 24 stores, says his company’s biggest challenge is balancing “smart growth with the high caliber of people we need. It’s a big task.”
When the dealership, which was founded in 1991, “was younger, there was a Burt (family member) at every location, almost all of the time. That’s not to say (customers) don’t have easy access to us anymore, but we’re not at the front lines because there are so many things we have to manage as we grow.
“Until I was in my early-30s I was managing a store and then after that, I’ve been on the corporate side of things. My partners and I then chipped away at bigger responsibilities as we grew our leadership team.
“We still go into our stores a lot, but we’re not working the front counter six
days a week like we used to,” says Burt, which means that finding and cultivating employees who “have that ownership mentality” has become a bigger priority.
“One of our core values is ‘behaving like you own the place,’ so no matter who they are or what they do in our organization, they understand their role is important. In the last 18 months, we’ve grown by 10 locations and that’s a lot for us. It took darn near 37 years before we had 13 locations!”
Burt Brothers Tire & Service has introduced training programs that immerse new employees in the dealership’s culture. “My brother, Cory, heads our sales team and he has weekly training. It’s all about customer service (and) knowing the customer, the mix of our product offerings and knowing how to help qualify customers.
Marc Pons, president
“Jason, one of my cousins and partners, oversees the operations side and he’s trying to do the same thing with tire
of Chapel Hill (N.C.) Tire, says finding opportunities for new locations is an ongoing challenge. “We’ve been trying to expand as aggressively as we can for the last eight years or so.”
Photo: Chapel Hill Tire
teams and mechanics. Even if they don’t talk to the customer, their job is just as important. They have to have that same ownership mentality.
“Then we have some of our seasoned veterans who have been with us for 15-plus years who are working under Cory and Jason to help instill that throughout the company.”
There are other, equally practical concerns as Burt Brothers Tire & Service continues to add to its footprint. “We run all of our potential acquisitions and new-build stores through some heavy metrics and filters to verify they are (in areas) where we feel Burt Brothers can win,” says Burt.
“Anytime you grow, there’s a chance you could be wrong and your plan isn’t correct. We have to do it right and make sure our payroll is dialed in and we control some of those costs that can come up and bite you. That’s a big challenge. We can’t have losing (stores) on the card.”
Marc Pons, president of Chapel Hill (N.C.) Tire, which has 11 locations, says finding opportunities for new locations is an evergreen challenge.
“We’ve been trying to expand as aggressively as we can for the last eight years or so and our preference is to do it by acquisition. There’s a lot of baby boomer (tire store owners) out there with no succession plan and it’s a great opportunity for us.
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‘Anytime you grow, there’s a chance you could be wrong and your plan isn’t correct. We have to do it right and make sure our payroll is dialed in and we control some of those costs that can come up and bite you.’
Brandon Burt, vice president of corporate development, Burt Brothers Tire & Service Inc.
“But the challenge is the private equity guys have gobbled up a lot of folks with maybe three stores.”
Another problem is that “a lot of businesses, owners said 10 or 12 years ago, ‘I’m not putting another dime into it,’” says Pons. “Because of that mindset, the facilities have gotten away (from them) and they don’t have much to sell.
“When you do an acquisition, a lot of times you’re buying that customer base and the goodwill that’s been built up over the years. But when (exiting store owners) haven’t done anything to differentiate themselves from a professional standpoint — maybe they’ve offered cheap
oil changes or low-cost alignments — that’s not a great customer base to be buying. And the mindset of their staff has been degraded,” in some cases. “It’s more, ‘Let’s just hold on,’” instead of “striving for excellence.”
Pons says he stays connected with specific dealers who might want to sell. “We reach out. We do emails and letters. If someone’s not interested” in selling at the moment, “but has a great business, I might ask them to get coffee or lunch and say, ‘I know you’re not thinking
about selling now. But if you are in the future, please keep our name in the hat.’ The last two acquisitions we did took two years, from initial contact to them being ready to sell.”
In addition, building stores from scratch has become cost-prohibitive, according to Pons. (Only two of his stores were new construction. The rest have come to Chapel Hill Tire via acquisitions.)
Before the COVID-19 pandemic, “we were geared up to do more ground-up locations. But postCOVID-19, inflation just took off, plus materials, labor and the cost of projects. It’s (also) going to take at least 18 months to get something through with municipalities and the development process — permits and those things.”
Pons also spends a great deal of time and energy on refining his dealership’s culture.
This includes strengthening the sense of accountability for its success among employees, he explains.
“Accountability is an incredibly complex topic. We’re a 71-year-old family business and I would say that family part has played a big role — so big sometimes that we were afraid to have tough conversations about performance” in the past.
“We had a habit of recognizing that maybe an employee or a location wasn’t performing well, but it was more comfortable to sort of divert our eyes and change the subject. We all wanted to be friends and that hurt the business.
“Everyone has a different definition of accountability,” says Pons. “To some people, accountability is an incredibly negative term. It means punishing people and firing people.
“So we’ve worked a long time on getting a common definition of what accountability means at Chapel Hill Tire.
“One of the things I’m really proud of, though, is that the Chapel Hill Tire version of accountability is very supportive. We want to help each other get over our obstacles.
“What it requires from the individual is vulnerability — saying ‘I’m stuck and I need help.’ That’s where we are in the process now — getting the team to say that ‘I’m stuck’ is an act of courage and strength.”
Pons has put resources in place to help. “It can be in the form of paid training. In a lot of cases, it’s bringing in someone who’s either dealt with what (struggling employees) are dealing with” or someone who “can see the problem differently.”
GROWTH MODE
EXPANSION IS THE NAME OF THE GAME FOR MTD 100 DEALERS
Mike Manges By
Many of the country’s largest independent tire dealerships have invested in new locations since the last edition of the MTD 100 was published in July 2023.
According to MTD research, Mavis Tire Express Services Corp., the largest independent tire dealership in the United States, went from reporting 2,029 locations at this time last year to having 2,115 stores.
Mavis made headlines in June 2023 when it acquired nearly 600 Tire Kingdom Service Centers and NTB Tire and Service Centers stores from TBC Corp., which also marked TBC’s exit from company-owned retail.
Discount Tire recently topped the 1,200-store mark, adding nearly 70 stores in the past 12 months, including
21 during 2024. In 2024, Discount Tire has added locations in Alabama, Florida, Georgia, Illinois, Michigan, Missouri, Nebraska, North Carolina, Texas, Washington, Wisconsin and Wyoming.
The Scottsdale, Ariz.-based retailer acquired Buffalo, N.Y.-based Dunn Tire Corp.’s retail stores — 25 in all — in September 2023. The purchase, which did not include Dunn Tire’s wholesale division, then known as Exxpress Tire Delivery, marked Discount Tire’s entry into the New York market and expanded the company’s presence in Pennsylvania.
The acquisition also marked a noteworthy departure from Discount Tire’s traditional “tires-only” model since all 25 former Dunn Tire retail stores offer auto service.
Around the same time, Discount Tire also acquired Ellisville Tire & Service, a single-store dealership in Ellisville, Mo., part of the St. Louis metro area.
In April 2024, Discount Tire acquired another independent tire dealership, Suburban Tire Auto Repair Centers, a longtime Chicago, Ill., market mainstay with six locations that, like Dunn Tire and Ellisville Tire, offer auto service.
Discount Tire officials said that both Dunn Tire and Suburban Tire Auto Repair Centers will continue to operate under their historic names.
Bend, Ore.-based Les Schwab Tire Centers Inc. added nearly 30 stores in the last 12 months and made a major acquisition in June 2024 when it purchased CMC Tire, a commercial tire dealership with 11 locations throughout Utah, Colorado and Nevada.
CMC Tire, which was founded in 2014 by Michael Morast and Tommy Servine, also operated a Continental retread plant in Hurricane, Utah.
According to Les Schwab officials, CMC Tire, which “brings particular expertise in the commercial, mining and construction fields,” will continue to operate under the CMC banner
Sun Auto Tire & Service Inc. has added 50 locations since the 2023 edition of the MTD 100 was published. During the second half of 2023, the Mesa, Ariz.-based chain opened five stores in the Houston, Texas, market.
Sun Auto Tire kicked off 2024 by acquiring Boyd’s Tire & Service, a seven-location dealership located in central Ohio, which marked Sun Auto Tire’s entry into that state.
In March, Sun Auto Tire continued its push into Texas by acquiring Carrollton Complete Automotive, a 13-year-old dealership in the Dallas/ Fort Worth metro area. The acquisition gave Sun Auto Tire 436 locations throughout 21 states.
Several months later, Sun Auto Tire expanded its footprint in Minnesota by opening a new TGK Tire & Auto store in Arden Hills, which had been
Scottsdale, Ariz.-based Discount Tire has topped the 1,200-store mark, adding nearly 70 locations in the past 12 months.
Photo: Discount Tire
Les Schwab Tire Centers Inc., which is based in Bend, Ore., added nearly 30 stores since last summer. It acquired CMC Tire in June 2024.
Based in Mesa, Ariz., Sun Auto Tire & Service Inc. now has more than 470 stores, including this Arden Hills, Minn., TGK Tire store that opened a few months ago.
Sun Auto Tire & Service Inc.
a Big O Tires outlet. Sun Auto Tire acquired TGK in 2022, which marked its Minnesota debut.
Last month, Sun Auto Tire acquired 33 Caliber Auto Care locations in Texas from body shop giant Caliber Collision. Sixteen of those stores are in Dallas, 13 are in Houston and four are in San Antonio.
The Best-One Tire Group, which is based in Monroe, Ind., grew over the last 12 months.
In August 2023, Cullman, Ala.based McGriff Tire, which operates 18 locations throughout Alabama and Tennesse, joined Best-One. This development further extended BestOne’s reach into the southeastern U.S.
Big Brand Tire & Auto Service, which is based in Moorpark, Calif., and is owned by Percheron Capital, increased its number of stores from 202 in July 2023 to 207 stores.
Columbia, Miss.-based Southern Tire Mart LLC, the largest independent commercial tire dealership in the U.S., has expanded its footprint to 208 stores, a 30-store increase from July 2023, when the company acquired two dealerships in California: Country Tire & Wheel and Tulare Firestone.
Country Tire & Wheel had four locations, including two in Bakersfield, Calif., one in Fresno and another store in Taft, Calif. The dealership, which was founded in 1983, had been owned by Tommy Castro and Randy Scholl.
Headquartered in Tulare, Calif., Tulare Firestone operated under the name of TF Tire & Service and had nine locations, including a wholesale division. It was owned by Lionel and Kevin Pires.
The two dealerships jointly owned Eco-T Tire & Retreading, a Bandag retread operation established in 2015. All Country Tire & Wheel, Tulare Firestone and Eco-T locations now do business under the Southern Tire Mart banner.
Tire Discounters Inc., which is based in Cincinnati, Ohio, continued to add locations, reaching 214 stores at press time.
During the first half of 2024, the dealership added locations in Ohio, Georgia and Tennessee and continues “to look for family-owned businesses
that share our core values” as potential acquisitions.
Green Bay, Wis.-based Pomp’s Tire Service Inc. and Allen Park, Mich.based Belle Tire Distributors Ltd., also added locations, with Pomp’s expanding its reach by more than 50 outlets versus what was reported in the 2023 MTD 100 and Belle Tire adding four stores as it continues to strengthen its presence in the greater Chicago market.
Greenwood Village, Colo.-based Leeds West Groups increased its store count to 124 with the acquisition of six Big O Tires locations in Texas last month. Four of those stores are in San Antonio, one is in Selma, Texas, and the other is in Leon Valley, Texas.
Norwell, Mass.-based Sullivan Tire Co. Inc. added 11 locations during the last 12 months, boosting its footprint to 103 outlets. Last year, the company reopened its store in Damariscotta, Maine. In June 2024, Sullivan Tire acquired the assets of seven Stratham Tire locations located in Bangor and Auburn, Maine, and in Portsmouth and Brentwood, N.H.
The Stratham Tire locations have since been rebranded as Sullivan Tire stores. They will continue to provide auto service, while the Bangor, Auburn and Brentwood locations will also sell commercial truck tires.
AAA Club Alliance Inc., which does business as AAA/Bob Sumerel Tire & Service, AAA Care and AAA Tire & Service, increased its store count to 101 locations, a 12-store gain based on what was reported in the 2023 MTD 100.
Potosi, Mo.-based Purcell Tire & Rubber Co. added one location within the last 12 months, increasing its count to 78 stores.
McCarthy Tire Service Co. Inc., which is based in Wilkes-Barre, Pa., added a greenfield store in Newark, N.J., and in August 2023 acquired Dice’s Tire Service, a single-location dealership in Carlisle, Pa., from its owners, Trey Wible and Sherrie Fisher. The Dice Tire acquisition also gave McCarthy Tire another Bandag retread plant for a total of 14 retread shops. Excluding retread plants and distribution centers, McCarthy Tire now has 73 locations.
Photo:
Photo: Les Schwab Tire Centers Inc.
Auburn, Maine-based VIP Tires & Service opened a new store Lowell, Mass., in August 2023 and in March 2024 acquired Joe’s Tire Shop in Westbury, Conn., which marked VIP Tires & Service’s entry into Connecticut. VIP Tires & Service also opened a store in Brockton, Mass., last month. The dealership now has 70 locations.
Black’s Tire Service Inc., which is celebrating its 95th year in business, brought four new locations into its fold: Lugoff Tire, which is based in Lugoff, S.C.; Raynor Tire, based in Fayetteville, N.C.; Calabash Auto, based in Calabash, N.C.; and Columbia Commercial, which is based in Columbia, S.C. Black’s Tire, which is headquartered in Whiteville, N.C., now has nearly 60 locations.
Merdian, Idaho-based Commercial Tire Inc. added three stores in the last 12 months — one in Idaho, one in Utah and another in Washington — bringing its store count to 52 locations.
Based in The Dalles, Ore., Gills Point S Tire & Auto Service boosted its store count from 43 as of July 2023 to 71 locations by adding stores in Utah, Montana, New Hampshire, Idaho and Michigan.
Fort Worth, Texas-based Texas Tires LLC now has 49 locations, according to MTD research.
Bloomsburg, Pa.-based Steve Shannon Tire Co. Inc. added six locations in the past year, which boosted its store count to 43.
MTD research shows that Anaheim, Calif.-based AKH Co. Inc., which does business as Discount Tire Centers, now has 40 stores, and Northern Rock Automotive now has 58 locations. MFA Oil Co., which does business as Big O Tires in Missouri, Arkansas and Oklahoma, now has 36 locations.
Rental Concepts LLC, which is based in Fayetteville, Ark., and does business as RNR Tire Express, now has 32 stores, up from 29 stores reported
Webster Groves, Mo.-based Telle Tire & Auto Service Inc. has made a number of acquisitions. It now has 26 locations.
Photo: Telle Tire & Auto Service Inc.
Auburn, Maine-based VIP Tires & Service has 70 locations, including this new store in Brockton, Mass., which opened last month.
Based in The Dalles, Ore., Gills Point S Tire & Auto Service has crossed the 70-store threshold. It has added locations in Utah, Montana, New Hampshire, Idaho and Michigan.
Photo: Gills Point S Tire & Auto Service
Norwell, Mass.-based Sullivan Tire Co. Inc. added 11 locations during the last 12 months, boosting its footprint to 103 outlets.
November 2023, Telle Tire purchased Rasch Automotive Service Center in Kirkwood, Mo., which had operated in the St. Louis, Mo., suburb since 1944.
North Salt Lake, Utah-based Burt Brothers Tire & Service Inc. added four stores. They are located in Eagle Mountain, Utah; Coalville, Utah; Tooele, Utah; and Roy, Utah. The additions bring the dealership’s store count to 24.
Pete’s Tire Barns Inc., which is based in Orange, Mass., added a location and now has 24 outlets.
Northwest Tire Inc., which is based in Bismarck, N.D., added a location, taking its current store count to 21. The dealership is building a commercial location in West Fargo, N.D., that will open in December or January.
Summit Capital Partners Automotive Services LP, an RNR Tire Express franchise, now has 22 locations, according to RNR Tire Express, up from 19 stores as listed in last year’s MTD 100.
in the 2023 MTD 100. Dayton, Ohiobased Grismer Tire Co., which does business as Grismer Tire & Auto Service, Detroit Tire and Dayton Tire Sales, opened a retail store in Lewis Center, Ohio, this past March. The greenfield outlet operates under the Grismer Tire banner and gives the dealership 28 total locations.
Goodturn Tire & Auto, which is based in Wellington, Fla., now has 27 locations. It acquired Naples, Fla.-based Collier Car Care this past April.
Another Big O Tires franchisee, SF Tire and Service Central Inc., which is based in Benicia, Calif., increased its store count from 25 to 27.
Webster Groves, Mo.-based Telle Tire & Auto Service Inc. increased its store count to 26. In July 2023, after the 2023 MTD 100 was published, Telle Tire opened a new store in Webster Groves, followed by the acquisition of Auto Clinic, a twostore business in Lee’s Summit, Mo.
In August 2023, Telle Tire acquired the assets of Car-Doc Automotive & Tire in Maryland Heights, Mo., and in
Birdsboro, Pa.-based CJ’s Tire & Automotive Inc. now has 18 locations, one more than reported in the 2023 MTD 100. Columbus, Ohio-based Katz Tire & Wheel also increased its number of stores from 17 to 18.
In addition, Central Arizona Automotive Group, a Mesa, Ariz.-based Big O Tires franchise, has 18 locations, a two-store increase from one year ago. And Addison, Ill.-based Cassidy Tire & Service now has 18 locations.
Lexington, Ky.-based S&S Firestone now has 15 non-warehouse locations, all of them commercial tire outlets.
Wonderland Tire Co., which is headquartered in Byron Center, Mich., acquired Carter Tire & Automotive in Elkhart, Ind., located between Wonderland Tire’s stores in western Michigan and its Chicago store. Wonderland Tire reports that it currently has 14 locations in total.
Bluewell, W. Va.-based King Tire Service Inc., Tulsa, Okla.-based Robertson Tire Co. Inc. and McAllen, Texas-based Pueblo Tires Ltd. now have 14 stores each, according to MTD research.
Bruneel Point S Auto & Tire, which is based in Boise, Idaho, now has 13 non-warehouse locations. Frederick, Md.-based Rice Tire Co. also has 13 locations, having added a store in Camp Hill, Pa., during the last year. ■
Photo: VIP Tires & Service
Photo: Sullivan Tire Co. Inc.
2024’s LARGEST U.S. INDEPENDENT TIRE DEALERSHIPS
1 Mavis Tire Express Services Corp., dba Dekalb Tire, Famİly Tire & Auto Service, Jack Williams Tire Co., Kauffman Tire, Mavis Discount Tire/Cole Muffler & Brake, NTB Tire & Service Centers, Savannah Tire, STS Tire & Auto Center, Tire Engineers, Tire Kingdom, Town Fair Tire, Weldon Tire 1 Millwood, N.Y.
Stephen and David Sorbaro, co-CEOs www.mavistire.com
2 Monro Inc., dba Allen Tire Co., Car-X Tire & Auto, Free Service Tire & Auto Centers, Ken Towery’s Tire & Auto Care, Monro Auto Service and Tire Centers, Mountain View Tire & Auto Service, Mr. Tire Auto Service Centers, Tire Barn Warehouse, Tire Choice Auto Service Centers, Tires Now, Tire Warehouse Tires for Less Rochester, N.Y., MIchael Broderick, CEO and president www.monro.com
5 Sun Auto Tire & Service Inc., dba BrakeMax Tire & Service Centers, Bruce’s Tire, Caliber Auto Care, Carrollton Complete Automotive, Coopers Auto Repair Specialists, Delta World Tire, Driver’s Edge, Evans Tire & Service Centers, Family Auto Service, Friendly Car Care, Gaynors Automotive, Goodguys Tires & Auto Repair, Greg’s Japanese Auto, Hogan & Sons, Jeff’s Auto Repair, Lamb’s Tire & Automotive Centers, Martin Tire, Parra Car Care, Plaza Tire Service, Ramona Tire, Reliable Automotive, Sun Auto Service, Sun Devil Auto Service, Tate Boys Tire & Service, TGK Automotive, Tire Outlet, Tire Works Total Car Care, T.O. Haas Tire & Auto, Wilhelm Automotive Mesa, Ariz.
Tony Puckett, CEO www.sun.auto
6 Best-One Tire Group 3 Monroe, Ind.
Mark and Larry Zurcher, co-owners www.bestonetire.com
7 Tire Discounters Inc.
Chip Wood, chairman www.tirediscounters.com
Thomas and James Duff, owners www.stmtires.com
Percheron Capital, dba Big Brand Tire & Service Moorpark, Calif.
You’ve seen the specs on the Alliance Agri Star II that make it a top performer—and top value— among ag radials. Stratified-Layer Technology for more biting edges and more stable lugs. Hexagonal bead for extra grip. Premium polyester casing and belts for great dimensional stability. More rubber for your customer’s dollar. A 7-year warranty and 3-year field hazard protection...and now a 1-year, 100% satisfaction guarantee.
Ask your Alliance rep about the Agri Star II, visit yokohama-atg.com or call us at (800) 343-3276.
• Stratified-Layer Technology means more biting edges
• Hexagonal bead bundle
• Stubble-guard compound
• Premium polyester casing plies and belts
• 7-year materials/workmanship, 3-year field hazard warranty
33 Left Lane Auto, dba Auto Plus, Clark Warehouse Tire & Auto, Clay Dooley Tire & Auto Service, DeRe Tire & Auto, Gipson’s Tire Pros, Jim Grizzle Tire & AutoLogan Tire Service Inc., Mike Smith Tire & Auto, Modica Bros. Tire & Wheel, Norris Tire & Auto Center, Pepper’s Lamont Auto Care, Scott’s Tire Center, Sexton Tire Pros & Service Center, Woods Tire & Auto Champaign, Ill.
Parham Parastaran, CEO www.leftlaneautollc.com
36 Conrad’s Tire Service Inc., dba Conrad’s Tire Express & Total Car Care 10 Cleveland, Ohio
The Atlas® SLP9K full rise scissor lift combines an extremely low lift platform height with a 78 inch full rise scissor jack system. The SLP9K full rise lift is the perfect above ground lift for those customers with ceiling height restrictions or those who want to avoid the cluttered look of dozens of vertical lift columns.
■ Commercial Grade
■ Open Center Design for Easy Access
■ 1 yr Structural – 1 yr Hydraulic Warranty
■ Separate Self-Contained Control Panel
■ Air-Operated Single Point Lock Release (External Air Supply Required)
■ 10 Locking Positions
■ Locking Approach Ramps
■ CE Certified
■ Adjustable width
2024’s LARGEST U.S. INDEPENDENT TIRE DEALERSHIPS
49 SF Tire and Service Central Inc., dba Big
Benicia, Calif.
Chris Monteverde, owner www.bigotires.com
51 Ben Tire Distributors Ltd., dba Neal Tire and Auto Service* Toledo, Ill.
Terry Carlon, president www.nealtire.com (retail) www.bentiredistributors.com (wholesale) *
51 Bob Sumerel Tire Co. Erlanger, Ky.
Bob Sumerel, CEO www.bobsumereltire.com
51 Telle Tire & Auto Service Inc. Webster Groves, Mo.
Aaron Telle, president and CEO www.telletire.com
54 Burt Brothers Tire & Service Inc. North Salt Lake, Utah
8.Gills Point S Tire & Auto Service has added locations in Utah, Montana, Idaho, New Hampshire and Michigan.
9.Audax Private Equity acquired an ownership stake in Dobbs Tire & Auto Centers last year.
10.Conrad’s Tire Service Inc. is planning to open a store in North Canton, Ohio, this summer.
11.Flynn’s Tire Group sold its commercial tire division to Bob Sumerel Tire Co. last year.
12. Grismer Tire Co. opened a new retail store in Lewis Center, Ohio, several months ago.
13. Northwest Tire is planning to open a new commercial tire location in West Fargo, N.D., in December or January.
14.Virginia Tire & Auto recently sold two gas stations it had owned.
15.Jon Langerak, CEO and president of Wonderland Tire Co., was MTD’s 2024 Tire Dealer of the Year.
High-tech formulations and longer intervals
NEED-TO-KNOW TRENDS IN OIL AND LUBE SERVICE
By
Kim Klimas
As engine technologies evolve, critical engine components will continue to come under increasing amounts of stress.
Bill Beyerle, automotive installed manager for Chevron Corp., says “newer engines are smaller, have tighter tolerances between engine parts and run at higher temperatures.”
These advancements are ideal for increasing fuel efficiency and providing maximum power to drivers, but they cause “incredibly high stressors inside the engine,” he adds.
As a result, there’s a need for engine oil to perform better to keep motors well-protected and working optimally.
Experts say tire dealers should take note of shifting trends in engine oil technology, interval times between oil and lube changes
Photo: Mann+Hummel
and best practices for customer communication. (Seventy-two percent of respondents to MTD’s latest Tire Dealer Automotive Service Survey offer engine oil and lube services to customers.)
INFLUENCING FACTORS
Evolving engine technologies have spurred a strong shift toward full-synthetic formulations, according to Beyerle. There also has been a big push toward smaller engines.
“Today’s six-cylinder engines produce as much power as eight-cylinder engines from the previous generation and the current four-cylinder engines outperform earlier six-cylinder counterparts,” says Beyerle.
“Improved engine oils can protect all parts of a small, turbo-charged (gasoline direct injected) engine that runs hotter, experiences more stress and has a high-power density. That is why OEMs have started using and recommending synthetic oils .”
OTHER KEY TRENDS
Brian Yates, product engineering director at Mann + Hummel, the makers of WIX Filters, Purolator and Mann-Filter, says low-viscosity engine oils “reduce the energy required to pump lubricant through the engine, while at the same time dissipating heat and contaminants and improving fuel efficiency.”
Shawn Swaverly, senior marketing manager at Amsoil, shares insight into these other market patterns:
Lower ash content. “Along with fuel economy regulations, tailpipe emissions continue to tighten,” he notes. “To help meet these increasingly strict requirements, industry standards have reduced the allowable ash content in engine oils.”
Low-speed pre-ignition (LSPI). This is a relatively new concern, according to Swaverly. “It’s a catastrophic event that can occur in modern turbo-charged, direct injection engines operating under low-speed, high-load conditions, such as accelerating from a stoplight. This form of pre-ignition is particularly destructive as cylinder pressures continue to increase with forced induction. Some engine oil chemistries can actually promote pre-ignition, so choosing the right engine oil is important to help prevent LSPI.” Segmentation. “Not all powertrains are the same nor do they experience the same conditions. Ensuring the longest life for (vehicles) requires using specialized lubricants.”
Brian Yates, product engineering director at Mann+Hummel, says low-viscosity engine oils “reduce the energy required to pump lubricant through the engine.”
THE NEXT BIG THING
Donald Chilton, director of product management at Mann + Hummel, says tolerances in engines have grown tighter “and you see the movement of 0W oils becoming the go-to for engine manufacturers.”
He expects this will continue. “Lower weights will still grow in popularity and synthetics, as well. The oil packages will continue to see refinement.
“Battery electric vehicles are not taking off as fast” as originally expected. “And hybrid (vehicle) investments are now ramping up.”
Bo Barnhill, engine oil product development engineer at Chevron, adds that “there is an increasing demand for products that are environmentally sustainable and eco-friendly. The immediate next big thing is to develop better oils to not only provide longer protection of engine parts, but also provide better fuel economy.
“This is what synthetic and lower-viscosity oils are doing today,” he explains.
“Next-gen engine oils will need to stand up to the rigorous requirements of newly developed engines and specifications, while also minimizing environmental impact.
“The introduction of premium, bio-based oils and the increasing quality of re-refined oils will have a significant positive impact on the environment.
“Additionally, these next-gen engine oils must be compatible with new exhaust after-treatment systems, like gasoline particulate filters, to enable significant reduction of harmful exhaust particulates.”
Swaverly says he expects “more of the same” in terms of new
“It used to be normal to change oil every 3,000 miles,” says Bo Barnhill, engine oil product development engineer at Chevron Corp. But oil change intervals have extended up to 7,500 miles in some cases, he notes.
Photo: Chevron Corp.
“Engine oils are more of an evolution than a revolution due to their backward compatibility” says Shawn Swaverly, senior marketing manager, Amsoil.
Photo: Amsoil
technology and future developments, adding that “engine oils are more of an evolution than a revolution due to their backward compatibility. Therefore, maintaining protection with lower viscosities and lower ash levels will continue to be the theme.”
New engine oil formulas also are extending interval times, according to Barnhill. “It used to be normal to change oil every 3,000 miles, but with modern lubricants most engines today have recommended oil change intervals of 5,000 to 7,500 miles.” Yates says that extended intervals make it “important from a filter selection process perspective to utilize high-grade elastomers and medias versus using the lowest-cost replacement.” ■
By
IDennis McCarron
How to overcome customer objections
PRESENT THE ISSUE, THEN DISCUSS THE SOLUTION
n a downturn economy — and I’m not an economist, but I am finely tuned to the automotive aftermarket — certain sales become more difficult as customers’ disposable income gets tighter and tighter.
Most of you have probably heard a version of “no” or “not right now” from customers and that is perfectly OK. In our world, you work with the customer to achieve the best possible outcome, while dealing with the reality of what they can afford.
What’s not acceptable is to not inform the customer of their vehicle’s condition because you think they will say “no.”
The process is simple: at write-up, ask the customer if they want a paid, comprehensive vehicle inspection.
If they say no, inform them of a basic courtesy inspection of fluids, filters, bulbs, wipers and tire tread depth.
If the customer declines that, respect the decision, but understand that any unsafe, plainly visible condition must be brought to their attention.
Also understand that presenting them with a cost estimate is the wrong way to go.
Remember, they clearly told you they don’t want to hear about it. But you are obligated by law — in most states — to convey the message.
Having said all that, good salespeople must get comfortable with hearing the word “no.” That means respecting the customer’s decisions, while still trying to offer a professional opinion of the condition of his or her car.
Certain jobs will be harder to get to a “yes.” Alignments, fuel system services and other non-essential jobs or jobs that can be delayed will yield a higher “no” ratio.
Understand that the more you talk to the customer about what they want out of their service today will help a service advisor understand what’s important to the customer and what they are willing and able to do to keep their car running longer.
Some customers are unfazed by a downturn in the economy. Some are hard-hit. Talk to them.
You don’t have to ask outright, “How much money do you have to spend today?” That’s obnoxious. But get to know their needs and wants and then craft a message that respects that.
Sometimes they will surprise you and give you the green light just because you weren’t trying to push a service onto them.
Also keep in mind that the three things every customer has a hard time declining work on are the three things they expect their vehicle to do for them: start, stop and be comfortable.
Vehicle starting is easy. A functioning electrical system is a requirement for customers to get to work or to take their kids to soccer practice.
The battery, the alternator or the starter are straightforward sales.
‘Don’t forget to read your customer’s position and align yourself with their concerns.’
Yes, it can get complicated with fuel injection and computers, but keep the discussion simple for now. It’s hard for a customer to decline a replacement if one of these items isn’t working.
Brakes are another simple sale. Most customers understand that when they push down on the brake pedal, they need a reliable reaction to occur.
If that reaction doesn’t occur or if there’s terrible noise associated with that reaction, then they will be at your doorstep.
Yes, a brake flush with that pad and rotor replacement will be a harder sell.
But a simple “Replacing the pads and rotors will return your brake system to their proper working condition” is a reassuring statement that most customers can relate to.
This also applies to other jobs, like front end work, that can make stopping more difficult or scary.
Being comfortable is the most complicated aspect of the three things customers want out of their vehicles. It’s not overly complicated, just the most out of the three.
Being comfortable can sometimes mean a working air conditioning system in the summer or a working heater in the cold.
It can also mean minimizing vibrations at high speeds, wipers that clear efficiently and even the ability to see at night.
It’s a broad brush, but again, a simple statement of “replacing that headlight will make it easier to see at night” or “rebalancing the tires will take away that shimmy” will more times than not elicit a positive response.
In today’s economy, regardless of whether you think we are in a recession or heading into one, don’t forget to read your customer’s position and align yourself with their concerns.
Then you can present to them relevant options to fix those concerns and wrap it around what they told you at the initial write-up.
Remember, if they have hesitation about any kind of vehicle inspection, first present the issue, not the solution.
If they are open to learning about the solution, then present that to them. ■
Dennis McCarron is a partner at Cardinal Brokers Inc., one of the leading brokers in the tire and automotive industry (www.cardinalbrokers.com.) To contact McCarron, email him at dennis@cardinalbrokers.com.
Mergers and Acquisitions
Thinking about trying dynamic pricing?
TAKE BABY STEPS AND DON’T UPSET CUSTOMERS
Michael McGregor By
Do you remember hearing about Martin Shkreli, also known as “The Pharma Bro?” He was the guy who took over a small company, Turing Pharmaceuticals, and raised the price of the life-saving drug, Daraprim, from $13.50 per pill to $750 a pill.
This raised such an uproar that he was investigated and eventually convicted of securities fraud and forced to disgorge $40 million in profits and forfeit $7.4 million in personal assets. He served about four years in jail and is forever barred from running a pharma company and a public company.
I bring this up only to provide context for the rest of this column. My first reaction when I heard about Pharma Bro was, “Why didn’t I think of that?” You see, I’m firmly in the camp of charging what the market will bear. As I’ve said before, life is easier with higher margins.
In my time in the tire industry, I’ve observed up close the power of pricing. Company stores losing money? Hmm, let’s organize regular price increases across all regions. Tire sales district losing money? Hmm, let’s get those labor rates way higher. Tire store with good traffic not making money? Hmm, let’s put higher prices in the point-of-sale system and tell salespeople they cannot — under any situation — change them. (And the store breaks even for the first time ever!)
I’m by no means an expert anymore on pricing in the tire and auto service business, but I recall the service side being particularly conducive to testing price elasticity. For example, what’s a good price for a radiator hose? And how much should you charge to install it? How about what the market will bear?
The tire side does not seem to have this same level of elasticity, particularly with branded products and the ability to check prices on the internet. But I guess that’s why God invented private label tires. With inflation still being above the Fed’s target rate, every tire dealer needs to be regularly raising prices. Either look at your prices periodically or raise them when you are confronted with increases yourself. And think about how you might integrate dynamic pricing into your business.
You’ve likely heard of the bad press Wendy’s restaurants recently received. On an earnings call with analysts, Wendy’s CEO boasted of a $20 million investment in new menu boards to be followed by a $10 million investment in artificial intelligence and other technologies to enable dynamic pricing — the raising and lowering of prices on menu items — along with the ability to offer customized food combos.
The media picked up on it and described it as “surge-pricing,” which many consumers hate. Wendy’s was on the defensive for a bit and offered $1 hamburgers to distract consumers, but they are still going ahead with their investments and plans to implement dynamic pricing in 2025.
While they share similarities, there are key differences between dynamic and surge pricing.
Dynamic pricing is where prices are adjusted in real-time based on factors such as demand, supply, weather, day of the week, competition and customer behavior. It’s currently used in retail, hospitality, transportation and entertainment.
The goal is to optimize revenue by charging the highest price customers are willing to pay at any given moment, while still remaining competitive and attractive.
‘Applications of dynamic pricing in the tire and service business could be used during this summer’s travel season.’
In comparison, surge pricing is typically associated with ridesharing platforms like Uber and Lyft. Surge pricing occurs during periods of high demand, when the supply of available drivers is insufficient to meet rider requests. Prices are automatically increased to encourage more drivers to come online and fill the demand. Surge pricing is often triggered by external factors, such as rush hour, bad weather or special events.
If you choose to experiment with dynamic or surge pricing, whatever you do, take baby steps, don’t upset your customers and avoid bad press like the plague. People will remember a bad experience and make alternative choices. For example, I’m back to renting cars when I travel now since an Uber ride in Denver this year at 6 a.m. in minus-15-degree weather surged from $30 to over $150 after six drivers canceled and I almost missed my flight.
Applications of dynamic pricing in the tire and service business could be used during this summer’s travel season. If you see a big uptick in demand at the start of summer, you might experiment with dynamic pricing by charging one rate for people who make appointments and a higher rate for drop-ins who want service on demand.
Dynamic pricing could also be used for personalized pricing strategies tailored to individual customer segments. Keep it simple to start and think about what you might do with new customers who have never been into one of your stores, lapsed customers who have not been in for more than 18 months and your best customers who come back regardless. ■
Michael McGregor is a partner at Focus Investment Banking LLC (focusbankers.com/automotive/tire-and-service). He advises and assists multi-location tire dealers on mergers and acquisitions. For more information, contact him at michael.mcgregor@focusbankers.com.
Dealer Development
Randy O’Connor By
BTV show vulgar, insulting — and thought-provoking NETFLIX SERIES HIGHLIGHTS WHAT TO
AVOID
y the time the journalist in the first episode of the new Netflix series, “Tires,” said, “No. Look, I have my story, OK?” I knew I had mine, too. Admittedly, I wasn’t as excited about the launch of a satire centered on a tire shop as other people were. I pretty much knew the stereotypes presented on the show would enrage me.
And at first, they did — until they didn’t.
Some scenes were blown out of proportion and were offensive, profane and vulgar, which sadly, is all-too common on TV today.
The writers of “Tires” did a fantastic job of dumbing down a segment of the industry — namely, you and your peers — who care deeply about the needs and well-being of customers.
But after watching episode one, I realized the show’s writers had done a fair amount of research or may even know “one of us.” The script was clearly written based on some experience. I realized there was much more at play here than just an offensive presentation.
The bits and pieces of each scene weren’t simply satire. They presented some version of what some dealers have allowed themselves to be thought of as.
Don’t get me wrong. The show’s portrayal of tire dealers is absolutely disgusting and by and large, completely unfounded. Once again, mass media harvests it viewership on the negative, which today sells.
I mentioned that the show’s writers did some research and brought some issues forward. Here’s my take on the topics they presented that — in one way or another — I’ve seen at some poorly run tire dealerships.
My goal is to give you a motivational takeaway of things to avoid. All of us in the tire and/or service segment have a responsibility to the spirit of our work.
If any of these representations or themes that “Tires” puts forth are part of your business’ culture, then you need to change:
• nepotism and succession planning, or lack thereof;
• lack of will;
• poor procurement/purchasing decisions;
• moving problems, including employees, from one place to another;
• lack of customer communication;
• terrible waiting rooms;
• inappropriate conversations in the workplace;
• lackluster leadership/coaching;
• price cutting to sell a job and offering the wrong loss leader.
Sadly, I can trace a line from most of the above to one topic or another that I’ve written about over the years.
All told, if “Tires” was simply satire without so many traceable elements to what is a reality in some bad shops, we all might be able to take the show at face value and laugh a bit.
This series may represent some of the things that are wrong in bad shops, but it doesn’t accurately represent how those who work in the majority of tire dealerships feel about their roles, as well as their customers and co-workers. We are truly passionate about keeping our customers’ cars and their families safe. But we are often misunderstood. (“Tires” certainly does not help.)
Sometimes, though, we fall victim to the stereotypes and become part of the problem, rather than drivers of the solution. Don’t let the daily grind engender you to ignore how impactful both positive and negative customer and employee experiences really are.
Today’s a great day to elevate our industry and rewrite the script. ■
Tire and auto industry veteran Randy O’Connor is the Owner/Principal of D2D Development Group (Dealer to Dealer Development Group.) He can be reached at randy@d2ddevelopmentgroup.com. For more information, please visit www.d2ddevelopmentgroup.com.
5/24/24 9:54 AM
EV Intelligence
Debunking common myths about EVs
HAVE YOU HEARD ANY OF THESE BEFORE?
Craig Van Batenburg By
Electric vehicles (EVs) have come a long way from the 2011 Nissan Leaf. In this article, I will discuss — and in some cases, debunk — 10 common myths about EVs, using what I’ve learned over the last 24 years of owning, driving, fixing, teaching and writing about them.
You can use these as talking points when customers express their concerns about EVs. Myths are listed in descending order:
Myth 10. You will lose 50% of your range in cold weather
This is slightly true. A modern EV has a heat pump for heating and air conditioning. At zero degrees, you will lose 25%. But at 40 degrees, you will only lose about 10%.
Myth 9. If you get stuck in a blizzard, you will freeze to death. False. Most EVs are charged overnight, so you leave every morning with a “full tank” of electrons. EVs are very efficient and when you are stopped, the cabin can be heated for more hours than a gas car with a full tank. Plus, we all own cell phones for emergencies.
Myth 8. You will have to wait for hours on a road trip to charge your EV.
This is false. If you use a D/C fast charger rated at 150 kW or higher, most EVs will do OK. A Tesla can add 100 miles of range every 10 minutes. Some 800-volt systems are even faster.
Myth 7. There are not enough fast chargers.
This is mostly true. Tesla is the leader here, but that is changing as you read this. Tesla is opening up their “super chargers” to other OEMs.
Myth 6. High-voltage packs only last five years or 100,000 miles.
False. The Nissan Leaf gave EVs a bad reputation because its pack lacked a cooling system and lost range quickly. The truth is that 200,000 miles or 15 years is normal on newer electric vehicles.
Myth 5. New EVs lose their value quickly.
This was mostly false. Now it is mostly true. Tesla sales slowed a year ago and a price war has been going on since then. This lowered the value of all used EVs.
Myth 4. EVs will catch fire and explode by themselves. This is almost entirely false. Some recalls on a few EV models have fixed this issue. The few fires on those models that made the headlines have been repaired.
Myth 3. EVs are unsafe in an accident.
False. Side impact protection on EVs has improved as the large battery pack is a frame member. And there is no gasoline to ignite.
Myth 2. EVs are too expensive to buy new.
This is false. All internal combustion engine (ICE) or electric cars and trucks are expensive today. Base models still exist. Without any incentives, an EV, such as a Nissan Leaf, can be bought for just over $28,000.
Myth 1. EVs pollute more than gasoline vehicles.
This is false, unless you total your EV before it has 35,000 miles on the odometer. It is true that it takes more energy to build an EV than a gas car. If your mix of electric power generation is 100% fossil fuels, which is very rare, or 100% renewable (hydro, wind and solar), which is also rare, then the distance you will need to drive will vary. Once an EV reaches 35,000 miles, on average, it will use less carbon-based fuels than ICE vehicles of similar size.
‘Life will continue to move into a new mobility age. Make sure you move with it.’
BATTERY MYTHS
My company, Automotive Career Development Center, has a fleet of EVs and plug-in hybrid vehicles.
Presently, we have a 2013 Tesla Model S with over 200,000 miles on it. The owner bought it new. The car’s high-voltage battery pack is no longer useful. We are now looking for a good used pack. Prices vary from $7,000 to $12,000. Most likely, this Tesla will get fixed as the rest of it has held up pretty well. And battery prices, in general, will continue to come down.
It’s also important to know that replacing a high-voltage battery pack is much faster than replacing a gas engine or transmission. The drive motors and final drive gear boxes are simple and wellmade. In the future, you may even be able to buy the EV and lease the battery pack.
The era of EVs is here. You can believe the myths and negative news and stay away or you can get involved. As with any new technology, EVs will have their problems that engineers will solve and life will continue to move into a new mobility age. Make sure you move with it. ■
Craig Van Batenburg is the CEO of Van Batenburg’s Garage Inc., dba Automotive Career Development Center (ACDC), which is based in Worcester, Mass. A 50-year automotive service industry veteran, Van Batenburg provides training for facilities that service — or want to service — electric and hybrid vehicles. For more information, see www.fixhybrid.com or email him at craig@fixhybrid.com.
YO U R B E S T M OV E
Focus on Industry
A feast of best practices
MADDENCO CUSTOMERS GATHERED TO LEARN AND SHARE
MaddenCo Inc. recently hosted 145 customers in Nashville, Tenn., for two days of training sessions during the company’s 2024 user conference.
With 25 classes that focused on different modules and capabilities of MaddenCo’s software, the event offered users thorough training so they can best utilize and maximize the system. Sessions covered all sorts of back-end operations in a tire dealership, from accounts payable and receivable to inventory and pricing, as well as specific modules related to things like retreading and road service call management. Each session showed users how to unlock tips and tricks.
Jay Adams, president of MaddenCo, said the sessions began with presentations from company personnel, but “evolved into a ‘best practices’ group discussion, often initiated by users who have been on the system for many years.”
He said user participation was heavily encouraged in every session, which allowed attendees to hear not just the official presentation on enhancements, but “also get the real world, how-to user version” from other attendees.
“They (received) that shared experience in using our software and the many ways it
can be used to enhance a user’s business,” which Adams said keeps customers coming back to the conference year after year.
Throughout the event, customers also shared their greatest needs and pain points. Adams said that in 2024, there were two overarching themes: artificial intelligence and how to gain more realtime connections to third parties. Adams said MaddenCo is working on both.
“We are investing heavily in building real-time connections to third parties. As for AI, we are evaluating how best to use that technology in-house first. The most likely result of that will be enhanced support services for our customers.”
In addition to sessions designed around MaddenCo’s software offerings, the company also hosted other vendors that offered additional training sessions to attendees.
Bruce Chamblee, chief operating officer at Dorsey Tire Co. Inc., said his company has used MaddenCo software since 2014 and called it “essential to our businesses.”
Dorsey Tire uses MaddenCo software for its accounting, inventory management, customer relationship management and point-of-sale.
“What’s the most remarkable is how well MaddenCo listens to their dealers and works to enhance the system to benefit the
efficiency and productivity of its users,” Chamblee said. A significant enhancement has been the ability to upload files in the system. “The ability to upload attachments to a customer’s invoice has been a game changer for us.”
Chamblee said attending the conference was helpful because it gave him and his team face time with the MaddenCo team and other vendors who attended. But it also was a time to learn.
“Each time we attend, we learn more about how to use the software to benefit our system utilization.”
Lori Swain is the chief financial officer at Resley Tire Co. Inc. and said her dealership has used MaddenCo software for about 18 years. Swain said the conference served as its own tool in that Resley Tire learned tips from others.
“There is always something to learn from not only the MaddenCo employees but the other users as well,” said Swain. “You have access to talk to support programmers, you can use the lab they set up to ask questions — it is definitely a valuable experience. I never come home not learning something from a MaddenCo employee and/or other users. There is so much knowledge that the users have gained over the years. We all share our knowledge, so if (another user does) something that is a little bit different from me but will save me time, then it was definitely worth my trip.”
Southern Tire Mart LLC is another longtime user of MaddenCo software. Joe Stevenson said “the number of integrations MaddenCo has with other software is (its) most valuable component.”
Just like those integrations, Stevenson said the MaddenCo conference was valuable. He was part of a team of Southern Tire Mart employees who attended. The biggest benefit, he said, was “to keep up with the latest technology and to maintain relationships with our partners and other companies in our industry.”
Morgan Vercimak is the government/ fleet coordinator at Northwest Tire Inc. and has been the tire dealership’s MaddenCo administrator for nearly 19 years. Vercimak has been to many of the conferences in that timespan and called the 2024 “our best conference yet.”
“As a Bandag retreader and national account supplier, no other platform has all the integrations we currently have and need. MaddenCo has revved up their output of ideas.” ■
During the MaddenCo Inc. user conference, the company showed customers the newest features of its software. MaddenCo leaders and customers alike said a big benefit of the sessions was the expertise of long-time users who shared tips during the discussion.
Photo: MaddenCo Inc.
Joy Kopcha By
2024 BUYERS’ GUIDE
OEM Wheels
1-800EveryRim OEM Wheels
12078 Florence Ave., Santa Fe Springs, CA 90670 (800) 383-7974
2875 Pomona Blvd., Pomona, CA 91768 (562) 340-6252
www.arroyotires.com
Products: Passenger tires, performance tires, SUV/light truck tires, radial medium/ heavy truck tires, HD ST radial tires, allterrain tires, commercial TBR tires, tire exporter/importer, advertising & marketing programs, tire retailer support programs.
ASA Automotive Systems, Inc.
800 S Industry Way, Suite 150, Meridian, ID 83642 (Offices in Illinois and New Hampshire, too) (800) 657-6409
www.asaauto.com
Products: ASA offers ‘All-in-One’ Point-of-Sale (POS), accounting and inventory software for independent tire dealers and automotive service providers in retail, wholesale, commercial and retreading enterprises. We also offer retailer support and loyalty programs, websites, digital marketing services and integrations to help single and multi-site stores improve operations, reduce costs and increase profitability.
Products: High performance tires, passenger tires, light, medium and heavy truck tires, extreme off-road tires, specialty and trailer tires, motorsports tires, commercial tires.
Crop Max
1221 Park West Green Dr., Katy, TX 77493 (281) 600-8473
Products: High performance tires, passenger tires, SUV/CUV/light truck tires, radial medium/ heavy truck tires, Web and other online assistance, tire retailer support programs.
Dawg Pound Tires
2200 Huntington Dr., Unit C, Fairfield, CA 94533 (707) 437-4700 or (800) 831-8473
www.dawgpoundtires.com
Products: Commercial truck tires, construction tires/OTR tires, material handling tires, agricultural tires, specialty tires, tire flaps and tire tubes.
Dealer to Dealer Development Group (D2D Dev. Group)
Hendersonville, NC 28791 (704) 572-7492
www.d2ddevelopmentgroup.com
Products: Peer-to-peer retail and commercial 20 groups, one-on-one consulting, management, sales and service manager training.
Delphi
3000 University Dr., Auburn Hills, MI 48326 (877) Go-Delphi
www.delphiaftermarket.com
Products: Electrical/ignition products, fuel system components, steering components, suspension components.
Products: Dill Air Controls Products continues to provide the automotive, RV, fleet, off-road, and trucking industry with leading valve stems and hardware, OTR valves and valve hardware, tire inflation devices, TPMS and hand tools. Many products are proudly made in the USA.
Products: Advertising/marketing programs, radial and bias agricultural tires, tire tubes, tire valves, TPMS, wheel weights, steel Ag wheels, alignment equipment, brake service equipment, lifts and jacks, tire display racks, tire mounting and balancing equipment, Web and other online assistance, tire retailer support programs.
Hercules Tire & Rubber Company
12200 Herbert Wayne Ct., Suite 150, Huntersville, NC 28078 (800) 677-9535
www.herculestire.com
Products: Passenger tires, light truck tires, medium & heavy truck tires, ag/ farm tires, industrial tires, specialty tires, tire retailer support programs.
Innova Electronics Corp. 17352 Von Karman Ave., Irvine, CA 92614 (800) 544-4124
www.innova.com
Products: Digital multimeters, inspection cameras, diagnostic equipment, tools & tool accessories, including OBD2 scan tools, tablets and dongles. Innova also offers other online and app-based support, including the RepairSolutions2 and RepairSolutions PRO companion apps created to assist, simplify and augment the vehicle diagnostic process.
Products: Repair facility shop equipment for the automotive, heavy-duty, agricultural, construction, off-road, landscaping and industrial markets to include fuel storage and handling equipment, used oil and fluid handling equipment, auto service equipment, vehicle exhaust extraction systems, automotive hardware and supplies, service kits, tire repair materials, tire studs and valves, tire handling equipment, supplies storage, TPMS sensors, kits, diagnostic/programming tools, interior protection, professional work lights, shop chemicals and electric/ hybrid repair and safety equipment.
John Bean
309 Exchange Ave., Conway, AR 72032 (800) 225-5786
800 East Canal St., Suite 850, Richmond, VA 23219 (804) 780-0060
www.matrixcmg.com
Products: Matrix Capital Markets Group, Inc. is an independent, advisory focused, privatelyheld investment bank. Since 1988, Matrix has provided merger & acquisition and financial advisory services to privately-held businesses, publicly traded companies and capital providers. Matrix professionals are dedicated and experienced in serving the investment banking needs of all segments of the automotive aftermarket, including: tire dealers, automotive service centers, quick lube oil change facilities, car wash chains, collision and glass repair, brick-and-mortar and e-commerce retailers of automotive parts and accessories, distributors of tires and automotive parts, and manufacturers of OEM and aftermarket parts.
Maxam Tire North America
300 Rosewood Dr., Suite 102, Danvers, MA 01923 (844) 629-2662
213 N. Stephanie St., Suite G - #303, Henderson, NV 89074 (310) 357-7293
www.plussizingguide.com
Products: The Ultimate Wheel and Tire Plus Sizing Guide. Tire and wheel fitment information for OE and plus size applications for both current and vintage vehicles.
Point S USA DBA Point S Tire & Auto Service
6102 N. Marine Dr., Portland, OR 97203 (503) 283-6494
www.Pointstire.com
www.JoinPointStire.com
Products: Passenger tires, light truck tires, medium/heavy truck tires, ag/farm tires, advertising & marketing programs, computer software, consumer credit and financing, online sales systems, POS/Retailing, roadside assistance programs, tire retailer support programs, training programs, website and other online assistance.
Products: Wheel coatings and coatings for wheel refurbishing, training programs.
Pre-Q Galgo Corporation
4329 Bronze Way, Dallas, TX 75237 (214) 330-7300
Fax: (214) 331-2222
www.pre-q.com
Products: Retreading — passenger, light truck, medium & heavy truck, OTR, equipment and materials.
Buyers’ Guide
Prinx Tires
100 N. Barranca St., Suite 1000, West Covina, CA 91791 (310) 205-8355 ext. 101
www.prinxtireusa.com
Products: Passenger tires, light truck tires, medium & heavy truck tires, performance tires, SUV/CUV tires, ST trailer tires, Retreading — medium & heavy truck tires, tire exporter/importer, tire retailer support programs, advertising & marketing programs, point-of-sale/retailing, roadside assistance programs, social media, trade show representation, training programs, website & other online assistance.
Pro-Cut International
10 Technology Dr., West Lebanon, NH 03784 (800) 543-6618
www.procutusa.com
Products: Brake service equipment including rotor matching systems, on-car brake lathes, validated brake service systems, mobile bench lathes, bench lathes.
The Pronto Network — Parts Plus, Auto Pride, and Pronto Auto Parts 2601 Heritage Ave., Grapevine, TX 76051 (800) 477-6686
www.theprontonetwork.com
Products: Supplier of automotive parts, tools, equipment and related services, including sales, marketing, online sales and training support.
Prometeon Tyre Group Commercial Solutions LLC
1270 Avenue of the Americas, Suite 2219, New York, NY 10020-1806 (833) 784-8762
www.prometeon.com
Products: medium & heavy truck tires
Quick Pressure
4181 Brew Master Dr., Suite 5, Ceres, CA 95307 (209) 488-7814
Montana Tire Dealers Advisory Council, part of the Montana Retail Association 1645 Parkhill, Suite 6, Billings, MT 59102 (406) 256-1005; (800) 388-0236
Email: Brad.griffin@mtretail.com www.mtretail.com
President: Bradley Griffin
New England Tire & Service Association (serving Maine, Massachusetts, Rhode Island, Vermont, New Hampshire and Connecticut) P.O. Box 320166, West Roxbury, MA 02132 (855) 638-7248
Email: netsapros@aol.com or Katie@netsa.org www.netsa.org
Executive director: Katie Maguire
New York Tire Dealers Association Inc. 18 Riverleigh Pl., Amityville, NY 11701 (631) 598-3201
Email: ecaramanic@aol.com www.nytda.com
President: Ernie Caramanico
Ohio Tire & Automotive Association 50 W. Broad St., Suite 1111, Columbus, OH 43215 (614) 221-7950
Email: info@ohiotire.org www.ohiotire.org
President: Jon Boyd
Northwest Auto Care Alliance P.O. Box 99907, Lakewood, WA 98496 (253) 676-9222
Email: brenda@nwautocare.org www.nwautocare.org
Executive director: Brenda Wolsleggel
South Carolina Tire Dealers & Retreaders Association Inc. P.O. Box 11035, Columbia, SC 29211 (803) 252-7128
Texas Tire and Automotive Association 4600 Spicewood Springs Rd., Suite 103, Austin, TX 78759 (512) 343-8608 or (800) 844-8748
Email: space@ecpi.com www.texastiredealers.org
Executive director: Chuck Space
Virginia Automotive Association P.O. Box 29069, Henrico, VA 23242-0069 (804) 739-1400
Email: Keeneygroup@gmail.com www.vaauto.org
Executive director: Bo Keeney
Products
Goodyear rolls out new Cooper tire
Goodyear Tire & Rubber Co. has launched the newest addition to its Cooper Discoverer line — the Cooper Discoverer Stronghold AT. The new all-terrain tire is designed to deliver traction, regardless of terrain. The tire features 3D sipe technology on its shoulders, wide and open grooves in its tread area and it carries 3-Peak Mountain Snowflake certification. The tire comes with a 60,000-mile treadwear limited warranty. It is available in 28 sizes, fitting wheels ranging from 16 inches to 20 inches in diameter, and is compatible with popular Ram, GMC, Chevy, Ford and Jeep vehicles.
GOODYEAR TIRE & RUBBER CO. www.coopertire.com
Prinx upgrades Fortune TBR lines
Prinx Chengshan Tire North America Inc. (PCTNA) has expanded and upgraded its Fortune Tire TBR lineup. The FAM210 line, which has been tailored for mixed-service applications, has added a size 255/70R22.5, 16-ply tire and a wider, new five-rib design in size 315/80R22.5, dubbed the FAM210-A, to significantly boslter both products’ performance capabilities. PCTNA also has introduced the size 315/80R22.5 coach/bus tire in the new FAR603 tread pattern. According to PCTNA, based on customer feedback, the speed ratings for the 19.5-inch tires has increased to an 87 mph-capable speed rating of N.
PRINX CHENGSHAN TIRE
NORTH AMERICA INC. www.fortunetireusa.com
Ralson unveils RAC55 TBR tire
Ralson Tire North America Inc. has introduced its Ralson RAC55 all-position TBR tire for construction and waste haul applications. The tire features an enhanced chip/ cut compound for extra durability and an open shoulder design with shoulder ejectors for maximum use on and off the highway. The tire comes in three sizes — 315/80R22.5, 11R22.5 and 11R24.5 — and is backed by a seven-year, three-retread warranty.
RALSON TIRE NORTH AMERICA INC. www.ralsontires.com
Pirelli introduces P Zero Winter 2
Pirelli & Cie SpA has unveiled the Pirelli P Zero Winter 2, which has been designed for high performance electric cars. The P Zero Winter 2, which will be available in North America, comes in 35 sizes, fitting wheels ranging from 18 inches to 22 inches in diameter, and is equipped with the company’s Elect electric vehicle tire technology. Among several other features, the new P Zero Winter 2 features a directional design; 3D sipes; and a tread compound that has been engineered to perform on various winter surfaces.
PIRELLI & CIE SPA www.pirelli.com
Michelin updates BFGoodrich all-terrain tire
Michelin North America Inc. has released its BFGoodrich All-Terrain T/A KO3 tire. The new tire is built on the performance of the BFGoodrich All-Terrain T/A KO2 tire. Features include a new tread pattern and all-terrain tread compound to provide longevity and durability, along with full-depth 3D locking sipes; CoreGard Technology that gives the tire sidewall toughness; Advanced Deflection Design to prevent objects from splitting the sidewall; a separated shoulder design; Mud-Phobic bars for traction in mud and snow; and more. The tire will be available in more than 100 sizes. An additional 52 sizes will arrive in 2025 and 19 sizes will be added in 2026.
MICHELIN
NORTH AMERICA INC. www.bfgoodrichtires.com
Omni United expands Renegade-X range
Omni United (S) Pte. Ltd. has expanded the Radar Renegade-X line with the addition of six new SKUs. The extension gives the Radar Renegade-X a total of 16 SKUs. The newly launched SKUs are: LT295/70R17 128/125Q E; LT295/70R18 129/126Q E; 33x12.50R18LT 118 Q E; LT295/65R20 129/126Q E; 37x12.50R20LT 128 Q F; and 37x13.50R20LT 127Q E. The Renegade-X was launched in 2021 and designed in collaboration with the Italian automotive design house, GFG Style. It features a high void-to-lug ratio and deep side blocks for traction and grip on rocks and soft soil; stone ejectors and serrations on the bottom of its tread for puncture resistance; three-ply sidewall construction, and more.
OMNI UNITED (S) PTE. LTD. www.omni-united.com
Will You Take Home The Mr. Tire/Big 3 Tire Commercial Tire Dealer Of The Year Award This Year?
The Mr. Tire/Big 3 Tire Commercial Tire Dealer of the Year Award is designed to recognize the tire dealership that is quite simply “The Best” among independent commercial tire shops. K&M Tire has partnered again with Modern Tire Dealer to bring you the 8th annual Commercial Tire Dealer of the Year Award. The winner will be announced this January at the 2025 K&M Tire Dealer Conference in Columbus, Ohio.
Winner Receives:
$2,000 in cash.
$1,000 towards the charity of their choice.
$1,000 towards a physical improvement project at their dealership.
Trophy along with the distinction of being the Mr. Tire/Big 3 Commercial Tire Dealer of the Year.
A feature story on the winning Commercial Dealer in a custom publication distributed at the K&M Tire Dealer Conference.
Nominations* will open July 1st, 2024 and will be accepted through September 30th, 2024. Please register by visiting the online registration site www.mrtirebig3tirectd.com and nominate your dealership today!
*This contest is for all eligible Mr. Tire and Big 3 Tire dealers only. Winner will be announced during the 2025 K&M Tire Dealer Conference in Columbus, Ohio!
2024 Winner Weaver’s Tire Service of Northumberland, Pennsylvania
Products
Vogue expands Custom Built lineup
Vogue Tyre & Rubber Co. has introduced two new sizes to its Custom Built Radial lineup — the Custom Built Radial SCT2 white/gold in size 275/50R22 for SUVs and crossovers and the Custom Built Radial white/gold in size 245/40R19 for passenger cars . The Custom Built Radial SCT2 is designed as the original equipment fitment for popular SUVs, crossovers and light trucks, such as the Cadillac Escalade and Ford F-150 Limited. Additionally, the new 245/40R19 size caters to the growing market of luxury sedans, fitting the Cadillac CT5, BMW 5 and 6 Series and the Mercedes E-Class.
VOGUE TYRE & RUBBER CO. www.voguetyre.com
OTR Engineered Solutions unveils Koa Warrior
The Koa Warrior ATV tire from OTR Engineered Solutions features a new tread pattern and better traction and stability in off-road conditions. The directional tread pattern of the Koa Warrior has been designed to channel mud, water and debris away from the tire for better traction and stability. The new tire is made from high-quality materials and features reinforced sidewalls and puncture-resistant construction for better durability. The Koa Warrior is available in 13 sizes.
OTR ENGINEERED SOLUTIONS
www.otrwheel.com
GRI expands ag, construction portfolio
Global Rubber Industries Pvt. Ltd. (GRI) has expanded its ag and construction tire portfolios with the addition of 11 new SKUs. The larger product portfolio includes tires designed for implementation and flotation machinery in agriculture applications and skid steers in the construction category. The expanded portfolio includes the Green XLR F77 in size 560/60R22.5; the Green EX Rib3 in size 400/60-15.5, the Green EX I-100 in size 12.5L-15, the XPT SS in size 12-16.5 and eight additional sizes for the Green EX I-100 DOT.
Yokohama unveils Geolandar A/T4 G018 tire
Yokohama Tire Corp. has expanded its Geolandar line with the new, all-terrain Geolandar A/T4 G018. The tire, which replaces the Geolandar A/T G015, is engineered for trucks, SUVs and CUVs and will be available in more than 100 sizes, fitting wheels ranging from 15 inches to 22 inches in diameter. The Geolandar A/T4 G018 is 3-Peak Mountain Snowflake-certified and has a dual-sidewall design. Other features of the tire include Yokohama’s GeoShield technology, which delivers off-road durability via multiple sidewall plies; Yokohama’s Enduro-Compound, a proprietary triple polymer that combats cutting and chipping; and more.
Transamerica launches Predator Mutant RT tire
YOKOHAMA TIRE CORP. www.yokohamatire.com
The Predator Mutant RT Trail tire from Transamerica Tire Co. Ltd. is designed for light trucks and SUV applications. The hybrid rugged terrain tire offers a unique, aggressive tread pattern for minimal road noise. The tire also features an optimized void-tolug ratio designed to handleextreme off-road conditions; advanced tread pattern and pitch variation to tame road noise; thick three-dimensional sidewall and shoulder lugs; an advanced all-terrain tread compound; and more.
TRANSAMERICA TIRE CO. LTD.
www.predatortires.com
CMA/Double Coin adds ST radials
GLOBAL RUBBER INDUSTRIES PVT. LTD. www.gritires.com
CMA LLC/Double Coin has introduced two new, all-steel ST radial tires to the Double Coin lineup. Based on the popular RT500 model, the tires, in sizes ST235/80R16 and ST235/85R16, are designed for high-speed trailer use. Features of the new tires include a large steel casing for an optimized carrying capacity, optimized tread depth for reduced heat build-up and wide shoulders for stability. The tires are designed for RV trailers, fifth-wheel trailers, horse trailers, utility trailers and boat trailers.
CMA LLC/DOUBLE COIN www.doublecointires.com
Chevrolet Equinox ■ 2023
DESCRIPTION & OPERATION
The tire pressure monitor system warns the driver when a significant loss of tire pressure occurs in any of the equipped tires. It allows the driver to display the individual tire pressures and their locations on the driver information center. When the vehicle is stationary, the sensor’s internal shock sensor is inactive which puts the sensors into a Stationary state. In this state the sensors sample tire pressure once every 30 seconds and do not transmit if the tire pressure does not change. As vehicle speed increases, the shock sensor pulses every wheel rotation, which puts the sensor into Rolling mode. The remote control door lock receiver receives and then sends the tire pressure and temperature data to the body control module (BCM). The BCM translates the data contained in the tire pressure sensor radio frequency transmissions into sensor presence, sensor mode and tire pressure. Once the vehicle speed is greater than 25 mph, the sensors begin to transmit once a minute keeping the pressure data up to date.
Each sensor has its own unique identification (ID) code which it transmits as part of each RF message and must be learned into the BCM memory.
Once all four IDs have been learned and vehicle speed is greater than 25 mph, the BCM continuously compares IDs and
pressure data in the received transmissions to the learned IDs and pressures to determine if all four sensors are present and if one or more tires are low.
If the BCM detects a low tire pressure condition, or a malfunction in the system, it will send a serial data message to the instrument cluster requesting the appropriate tire pressure monitor indicator illumination and also to display the appropriate data message on the driver information center, if equipped.
TIRE PRESSURE INDICATOR SENSOR LEARN
Tire Pressure Sensor Learn with EL-52545 (preferred)
The EL-52545 allows the tire pressure sensors to be learned without transmitting RF data between the tire pressure sensors and the vehicle. When using the EL-52545, each tire pressure sensor ID is learned and stored internally. The EL-52545 is then connected to
Photos: Mitchell 1
TPMS
the vehicle DLC using the OBD2 Interface Module, which is part of the EL-52545 kit. The stored tire pressure sensor information then will be loaded into the K9 Body Control Module. Using the EL-52545 to learn tire pressure sensors will prevent the vehicle from learning an errant nearby tire pressure sensor from other vehicles in a service facility environment, especially if the tire pressure sensor batteries are low. This is the GM recommended method to learn tire pressure sensors.
1. Turn on EL-52545.
2. Select RDR from the on-screen display. Make sure the TPMS tool battery is sufficient to complete the learn process. Do not place the TPMS tool directly on the valve stem. The tool should be placed against the tire sidewall near the valve stem. The sensor learn activation procedure may have to be repeated up to three times before determining if a sensor is malfunctioning.
3. If available, scan the QR code on the vehicle’s tire placard or certification label. If a QR is not available, select MMY from the on-screen display and manually input the vehicle information.
4. Approach the vehicle starting with the left front tire and read each tire pressure sensor information by pressing the green trigger button with the EL-52545 located near the tire valve stem. Read each tire pressure sensor in the order identified on the EL-52545. If any sensors display “Sensor Not Compatible” on the EL-52545 screen, you will need to first make sure compatible sensors are installed on the vehicle.
5. If any tire pressure sensors do not respond, replace the tire pressure sensor only after several attempts have been made to identify all sensors. An undetected sensor will be identified with “No Sensor Detected” displayed in the table. After sensor replacement rerun RDR procedure.
6. Verify the BAT value for each tire pressure sensor in the table on the EL-52545 is OK. If the value is not OK, replace the tire pressure sensor and rerun RDR procedure.
7. Verify the pressure and temperature values are reasonable based on the ambient conditions and actual tire pressure. If either value is inaccurate, replace the tire pressure sensor and rerun RDR procedure.
8. Ignition On/Vehicle in Service Mode.
9. Connect the EL-52545 OBD2 Interface Module to the EL-52545.
10. Verify the OBDII icon is displayed on the EL-52545 and the green com LED is flashing on the EL-52545 OBD2 Interface Module.
11. Connect the other end of the OBD2 Interface Module to the vehicle DLC.
12. Select OK on the EL-52545 and follow the on-screen instructions.
Tire Pressure Sensor Learn with EL-50448 (alternative)
When EL-50448 Tire Pressure Monitor Sensor Activation Tool is used in activate mode, it produces a low frequency transmission that activates the sensor. The sensor responds to a low frequency activation by transmitting in Learn Mode-Remotely Triggered. When the BCM receives a learn mode transmission while in Learn mode, it will assign that sensor’s ID to the location on the vehicle relative to the order in which it was learned.
In the event a particular sensor is activated and the horn does not chirp, it may be necessary to rotate the wheel so that the valve stem is in a different position, because the sensor signal is being blocked by another component.
1. Ignition On/Vehicle in Service Mode, using driver information center buttons or scan tool (if available), initiate the Tire Pressure Sensors Learn mode. A double horn chirp will sound indicating the Learn mode has been enabled. The left front turn signal will also be illuminated.
2. Starting with the left front tire, activate the sensor by holding the antenna of the tire pressure monitor activation tool aimed upward against the tire sidewall close to the wheel rim at the valve stem location. Press and release the activate button. Ensure the transmit indicator on the special tool indicates the sensor activation signal is being transmitted. Wait for a horn chirp. If the horn does not chirp, repeat the sensor activation sequence with the tool. Once the horn chirp has sounded, the sensor information is learned and the turn signal in the next location to be learned will illuminate.
3. After the horn chirp has sounded and the right front turn signal is illuminated, repeat the previous step for the remaining sensors in the following order: Right front / Right rear / Left rear.
4. When the left rear sensor has been learned and a double horn chirp has sounded, the learn process is complete and the BCM exits Learn mode.
TIRE DEMOUNTING AND MOUNTING
Demounting Procedure
1. Raise and support the vehicle.
2. Remove the tire and wheel assembly.
3. Remove the valve core and release the air pressure.
4. Deflate the tire completely.
5. Use the tire changing machine to remove the tire from the wheel following the manufacturer-specific directions for the tire changing machine being used. (Center-Clamp tire changers are recommended.)
Failure to position valve stem in proper position while demounting and mounting the tire may result in the TPMS sensor becoming damaged.
6. When separating the tire bead from the wheel, do not allow the bead breaker to contact the valve stem/TPMS sensor as they will be damaged.
7. Position the tire machine removal head to the outer tire bead so it will operate without contacting the valve stem/ TPMS sensor.
8. Using the tire changing machine, remove the outer tire bead from the wheel.
9. Position the tire machine removal head to the outer tire
bead so it will operate without contacting the valve stem/ TPMS sensor.
10. Using the tire changing machine, remove the inner tire bead from the wheel and remove the tire.
11. If a tire sealant product was used/found within the tire, and the tire is repairable, use a mild dish soap, clean water and shop cloths to remove the sealant residue. (Refer to information on the tire sealant Material Safety Data Sheet and follow guidelines for handling and disposal.)
12. If a confirmed GM approved tire sealant product has been used/found within the tire, use a mild dish soap, clean water and shop cloths to remove the sealant residue from the tire pressure indicator sensor.
13. If a tire sealant product was used/found within the tire, and it cannot be confirmed that a GM approved product was used, replace the tire pressure indicator sensor.
14. Use medium coarseness steel wool to remove any rubber or corrosion from the wheel bead seats.
15. Inspect the tire and wheel for any damage, replace as necessary.
Mounting Procedure
When mounting the tires, use an approved tire mounting lubricant. Do not use silicon or corrosive base compounds to lubricate the tire bead and the wheel. A silicon-base compound can cause the tire to slip on the rim. A corrosive type compound can cause tire or rim deterioration.
1. Apply mounting lubricant to the tire bead and the wheel.
2. Use the tire changing machine to install the tire to the wheel following the manufacturer directions for the tire changing machine being used. (Center-Clamp tire changers are recommended.)
3. Place the inner tire bead onto the wheel. Failure to position the valve stem in proper position while demounting and mounting the tire may result in the TPMS sensor becoming damaged.
4. Position the tire machine installation head to the inner tire bead so it will operate without contacting the valve stem/ TPMS sensor.
5. Using the tire changing machine, install the inner tire bead to the wheel.
6. Position the tire machine installation head to the outer tire bead so as it will operate without contacting the valve stem/ TPMS sensor.
7. Using the tire changing machine, install the outer tire bead to the wheel.
To avoid serious personal injury, do not stand over the tire when inflating. The bead may break when the bead snaps over the safety hump. Do not exceed 40 psi pressure when inflating any tire if the beads are not seated. If 40 psi pressure will not seat the beads, deflate, relubricate the beads and reinflate. Overinflation may cause the bead to break and cause serious personal injury.
8. Some run-flat tires may require more than 40 psi to seat the bead. In such a case, a tire safety cage must be used. Consult the tire manufacturer for its individual repair policy.
9. Inflate the tire until it passes the bead humps. Be sure that the valve core is not installed at this time.
10. Install the valve core to the valve core stem.
11. Inflate the tire to the specified pressure as stated on the tire placard.
12. Balance the tire and wheel assembly.
13. Install the tire and wheel assembly.
14. Remove the support and lower the vehicle.
TIRE PRESSURE SENSOR REMOVAL AND INSTALLATION
Removal Procedure
1. Raise and support the vehicle.
2. Remove the tire and wheel assembly.
3. Demount the tire from the rim.
4. Insert an anti rotation pin through the cross-drilled hole in the valve stem.
5. Hold the valve stem to prevent it from rotating, then remove and discard the bolt from the tire pressure indicator sensor.
6. Pull the tire pressure indicator sensor straight off the valve stem. Do not twist the tire pressure indicator sensor to remove.
7. Cut the inner seal off the valve stem. Do not scratch or damage the clear coating on aluminum wheels with the tire changing equipment. Scratching the clear coating could cause the aluminum wheel to corrode and the clear coating to peel from the wheel.
8. Remove and discard the valve stem by pulling it through the wheel using a valve stem removal tool.
9. Clean all sealing surfaces.
TORQUE SPECIFICATIONS
Single Use Threaded Fastener/ Component Tightening Specifications
The tire pressure indicator sensor is supplied assembled to a new valve stem. They must be separated before installation.
1. Remove the new bolt from the tire pressure indicator sensor and pull it straight off the new valve stem.
2. Apply lubricant to the new valve stem. (Valve stems and bolts are single use items.)
3. Using a tire pressure valve stem mounting tool, pull the valve stem through in a direction parallel to the valve hole on the wheel.
• Ensure the flat surfaces of the tire pressure indicator sensor and the tire pressure valve stem are located correctly.
• Rotate the valve stem by hand to align the tire pressure indicator sensor.
• Do not tighten the bolt at this stage.
4. Assemble the tire pressure indicator sensor to the valve stem and install the new bolt hand tight.
5. Insert an anti-rotation pin through the cross-drilled hole in the valve stem.
6. Hold the valve stem to prevent it from rotating and tighten the bolt to 1.4 N.m (12.4 lb in).
7. Check the valve stem to ensure that it is fully seated on the wheel as follows:
• The wheel hole edge has to be completely in the notch of the valve stem.
• The valve and the wheel hole have to be concentric.
8. Make sure there is a parallel gap between the valve stem and the tire pressure indicator sensor. The tire pressure indicator sensor must NOT be in contact with the wheel.
9. When correctly positioned there will be a parallel gap between the tire pressure indicator sensor and the wheel.
NOTE: Tire pressure indicator sensors are shipped in the OFF mode. The sensor will exit its OFF state when the tire is inflated. Also, the tire should not have contact with the tire pressure indicator sensor during installation to prevent damage to the sensor.
10. Mount the tire to the wheel. Install the tire and wheel assembly, and remove the support and lower the vehicle.
11. Perform the tire pressure indicator sensor learn procedure. ■
Information for this column comes from the tire pressure monitoring systems data in ProDemand, Mitchell 1’s auto repair information software for domestic and import vehicles. Headquartered in San Diego, Mitchell 1 has provided quality repair information solutions to the automotive industry since 1918. For more information, visit www.mitchell1.com.
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