Modern Tire Dealer - October 2012

SAUL LUDWIG’S SWAN SONG ‘The trend toward wholesalers is going to...’

TO CATCH A THIEF Dealers help nab a scam artist

THE INDUSTRY’S LEADING PUBLICATION

BIGGER TIRES IN A GROWTH MARKET

And the focus is on crossovers (at the expense of SUVs)

TOP 25 COMMERCIAL TIRE DEALERS SELLING IS A CONTACT SPORT 10 points for winning over customers October 2012 | Vol. 93, No. 10 | $10 | A Bobit Publication | www.moderntiredealer.com

Quik-Link: 800-687-1557 ext. 21101

Features

18 Ludwig on: everything

For the last time, we ask our favorite analyst to talk about the issues that will afect you

22 Bigger tires in a growth market And the focus is on CUVs (at the expense of SUVs)

28 Boundaries?

What boundaries?

Dealers in the Philadelphia market continue to meet all demographic challenges

36 To catch a thief

Dealers put competition aside to crack check fraud scheme

Te Industry’s Leading Publication October 2012, Volume 93, Number 10

Departments 4 Editorial A plug for the tire plug? Nope. But we don’t need to legislate tire repair procedures 6 Online Traffc report: From tire tariffs to terriers

8 News/views Cake and customers: Kenda and Hercules celebrate milestone anniversaries

16 Market report All eyes were focused on the expiration of Tariff 421

64 Counter intelligence Selling is a contact sport: Timeless tips on winning over the customer

66 Business insight What motivates your employees? SalesMinded dealers ensure targets, rewards are on target

Commercial Tire Dealer™

44 Pent-up demand spurs commercial sales

Business is post-recession, but not post-recovery — yet

46 2012 Top 25 U.S. Commercial Tire Dealers 52 Embracing efective methods for educating employees

Tire service industry must say goodbye to ‘old Joe training’

68 European notebook European tire crisis? What crisis? General feeling at the moment is cautiously positive

70 Focus on dealers Another (No. 33) grand opening for Conrad’s!

In northeast Ohio, no dealer has more stores

72 Focus on industry Get ready to roll into the SEMA Show: Global Tire Expo offers largest tire show, TIA education

74 TPMS Serial data circuit performs 2006-2008 Isuzu Ascender TPMS system functions

98 Your turn

58 Commercial matchup

Bridgestone pairs up Ecopia truck tires with Bandag retreads

61 Commercially Viable

What the retreading industry can teach current politicians

78 Products 80 Power Products 92 Quik-Link 94 Classifed

Modern Tire Dealer is a proud member of: TRIB

TIRE RETREAD & REPAIR INFORMATION BUREAU

Member An Industry Association

www.moderntiredealer.com

3

Editorial

A plug for the tire plug?

Nope. But we don’t need to legislate tire repair procedures

M

any years ago, shortly afer I joined fne itself. Tire repairs might be priced out of Modern Tire Dealer, I had to get one of existence, like passenger retreading. Regardless, my tires repaired. It had a nail hole in with no enforcement, there is no gain. the tread, so the dealer gave me a choice of repairs.

2. I don’t necessarily see one-piece plug repairs as I chose the one-piece plug repair (by that I mean the problem. Tey work, at least in the short term. no accompanying patch) for $9, only because I Tire repair material manufacturers still sell onedidn’t know any beter. piece plug repairs, but only — and they all told me Te industry wasn’t recommending plug repairs this — as “temporary” repairs. Tat’s what it says on without a patch at the time, but they were still their boxes or packages. Tey also support industry available to tire dealers. I also decided to have it By Bob Ulrich standards of what constitutes a proper repair. repaired with the tire still on the rim.

TIA wants to make these repairs illegal for Fortunately, I never had a problem with the tire. over-the-road vehicles. In an emergency, however, Now, before your brain spontaneously vulcanizes, they still have a purpose. Tey are temporary; if the endI’m not saying it’s safe to go against industry standards. user or tire dealer treats them as permanent, then they are I, too, promote proper two-piece, of-the-wheel repairs. responsible for the outcome.

I’m just passing along my one experience with the issue 3. If we start legislating every improper use of a product, as background for what is to follow. then our cost of living would skyrocket. Reality television Tat brings me to the recent announcement that the Tire might also disappear (although that might not be a bad thing).

Industry Association (TIA) and Rubber Manufacturers Association (RMA) are working on a “model” tire repair Even TIA admits tire dealers who improperly repair bill. I’m against it. tires are in the minority. Tat is thanks, to a great degree, to I may be colored by my positive experience, but I doubt the association’s ATS (Automotive Tire Service) training it. I think legally banning tire repair on the state or national program. Modern Tire Dealer is one of the sponsors of the level is unnecessary.

ATS Training Tour.

At least one state already has tried.

“By making improper repairs illegal, Earlier this year, the New York State the thousands of tire retailers who folLegislature appeared close to passing low industry recommended practices the Proper Tire Repair Act. Essentially, will... refuse to install illegal repairs and Senate bill S 7082 died when it was not advise their customers to be cautious voted upon before the New York State when dealing with automotive service Legislature ended its 2012 session. providers who are willing to illegally Te bill would have imposed a $500 repair tires and endanger themselves and penalty on any repair shop that atempted other motorists,” says Kevin Rohlwing, to repair tires without 1) removing the TIA’s senior vice president of training. tire from the rim, 2) inspecting it for Perhaps this trend to legislate is the damage and 3) “ensuring that a repair result of the verdict in last year’s wrongconforms to repair procedures supported ful death suit against Mossy Ford. by tire makers.”

Te San Diego, Calif.-based car dealerTe RMA supported the legislation. ship and the technicians who worked TIA did not; it felt that for the bill to be on the repair paid $22.7 million to three efective, it needed to be more “proactive than reactive,” children whose parents were killed because a year-old according to Executive Vice President Roy Litlefeld. “faulty” tire repair failed. Te plaintifs’ atorney claimed Now for the reasons why I’m against similar legislation. that the repair should not have been made, and that the tire should have been taken out of commission.

1. How in the world would you enforce it? I don’t see A failed tire repair is never good. When it leads to a how it could be managed efectively, short of seting up fatality — if, indeed, it did in the Mossy Ford case — that’s another agency or department that would need to not one too many. But legislating proper tire repair or illegal only supervise repairs (with spot checks, perhaps?) but tire repair is not the answer. Continued training is. ■ also determine if a repair was improper.

Doing so would be both costly and unwieldy. My guess If you have any questions or comments, please e-mail me is the extra bookkeeping alone would cost more than the at bob.ulrich@bobit.com.

Even TIA has to admit tire dealers who improperly repair tires are in the minority.

4

MTD October 2012

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Online

Trafc report From tire tarifs to terriers

A

day before the 25% tarif on consumer tire imports from China was to be lifed (Sept. 25), Modern Tire Dealer Editor Bob Ulrich posted a blog on our website (www.moderntiredealer.com) stating “Both the president and USW say NO MORE TARIFF.” (A 35% tarif was implemented in 2009, it dropped to 30% in 2010.)

Small business owner “David” responded to the popular blog. “Well! All those smart people really caused the average consumer the inability to purchase a tire for an average price, but instead pushed them into used tires. Good (tires) cannot be found because of Cash for Clunkers three years ago. Tis meant the so-called recession, which was brought on by the smart people, put regular people at a disadvantage to purchase tires at a reasonable price and have fairly good tires on their vehicle — they had to choose used over new. And small tire shops had to almost give away tires to compete with mass tire outlets. Way to go, government...” (See more comments on our site and leave your own!)

With the presidential election nearing, the tarifs are being used as political fodder. In his Sept. 20 blog, Ulrich wrote “Tire tarifs saved jobs? Don’t believe everything in a campaign ad.” Readers of Ulrich’s blogs know how he feels about the subject (see “Tire tarifs did not equal jobs, despite what President Obama said” from earlier in the year). He stated what he felt was the real reason for increased tire factory jobs: “As we came out of the recession, demand for tires picked up, and tire manufacturers starting running their plants around the clock, requiring more workers.”

See these blogs and much more on the tarif controversy on our website. And watch for updates on how the elimination of the tarif afects tire prices. We’ll stay on top of the situation for you!

Also receiving a lot of hits is Managing Editor Lori Mavrigian’s blog on “Puppy love pays of for dealership,” (Aug. 30).

Tat blog featured Fionna, the half-Chihuahua, half-Jack Russell mix who is the greeter at Boni Tire & Auto Service Inc. in Flemington, N.J. Modern Tire Dealer ran an article on the owners of the dealership, Dan and Lori Boni, in our June issue.

Fionna’s photo was sent along with other shots of the company’s employees. Other dealerships have responded to that blog by sending in their own photos of their animal ambassadors. If you have one, please send us a photo and some background. Email it to lori.mavrigian@bobit.com. We plan to post all the photos on our Facebook page.

See news updates, current and past MTD articles, our blogs and much more at www.moderntiredealer.com. And be sure to leave us your comments! ■

Total access — totally free www.moderntiredealer.com

3515 Massillon Road, Suite 350 Uniontown, Ohio 44685 (330) 899-2200, fax (330) 899-2209 Web site htp://www.moderntiredealer.com Editor: ROBERT J. ULRICH Bob.Ulrich@bobit.com Managing Editor: LORI L. MAVRIGIAN Lori.Mavrigian@bobit.com Senior Editor: BOB BISSLER Bob.Bissler@bobit.com Contributors: Auto Service/Technical: MIKE MAVRIGIAN Training/Tire Service: KEVIN ROHLWING Industry Analyst: SAUL LUDWIG Art Director: NEAL WEINGART Neal.Weingart@bobit.com Production Manager: KREN RUNION Karen.Runion@bobit.com Publisher: GREG SMITH Greg.Smith@bobit.com South and Texas: GREG SMITH Greg.Smith@bobit.com (330) 899-2200, fax (330) 899-2209 Midwest: MICHELE VARGO Michele.Vargo@bobit.com (330) 899-2200, fax (330) 899-2209 West Coast: JOHN DYAL Te Dyal Company John.Dyal@bobit.com (760) 451-5026, fax (760) 451-5039 West Coast: MARIANNE DYAL Te Dyal Company Marianne.Dyal@bobit.com (760) 451-9216 Automotive Afermarket: DAN THORNTON djtinc@gmail.com (734) 676-9135, mobile (313) 410-0945 fax (734) 675-6744 Classifed Sales: DONNA STEWART Donna_Stewart@cox.net (405) 513-6794, fax (360) 406-7576 Reprint Sales: KREN RUNION Karen.Runion@bobit.com (330) 899-2200, fax (330) 899-2209 Customer/Subscription Service: (888) 239-2455, fax (888) 274-4580

Modern Tire Dealer is a Bobit Publication Executive ofces: 3520 Challenger St. Torrance, CA 90503 Chairman: Edward J. Bobit CEO & President: Ty F. Bobit Chief Financial Ofcer: Richard E. Johnson

MODERN TIRE DEALER (ISSN 00268496) (CDN IPM #40013413) (USPS #369-170) is published monthly by Bobit Business Media, 3520 Challenger St., Torrance, California 90503-1640. Periodicals postage paid at Torrance, CA 90503-9998 and additional mailing offces. POSTMASTER: Send address changes to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks for address changes to take effect. Subscriptions in the U.S. and its possessions, $65; Canadian, $99; Int’l surface mail, $99; Int’l airmail, $198. Single copies, $10, except the January Facts Issue, $30. Address all subscription correspondence to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks to receive your frst issue. Please address Editorial and Advertising correspondence to MODERN TIRE DEALER, 3515 Massillon Road, Suite 350, Uniontown, OH 44685-6217. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. For your information: We sometimes make our subscriber information (i.e. fax, e-mail or mailing address) available to carefully screened organizations whose products and services may be of interest to you. If you prefer not to have your information made available, please write MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068.

6

MTD October 2012

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News/views

Cake and customers Kenda and Hercules celebrate milestone anniversaries Two Ohio-based tire marketers celebrated milestones in September. One was golden. The other was a diamond jubilee.

Top executives from American Kenda Rubber Industrial Co. Ltd. played host to a 50th anniversary party for its parent, Kenda Rubber Industrial Co. Ltd., in Reynoldsburg, Ohio. In attendance were Chairman Ying-Ming Yang and Vice-Chairman Jimmy Yang (who doubles as president of American Kenda), and Kenda Rubber President Hongder Chang.

Ying-Ming Yang, Jimmy’s older brother, started with the company in 1974. He said his expertise is in general management, while Jimmy’s is in sales.

Kenda executives at the anniversary party (pictured with the Kenda The company was started by the broth- Porsche 911 GT3 car) were, from left to right: Jimmy Yang, vice-chairman; ers’ late father, Chin-Pao Yang, in 1962. Ying-Ming Yang, chairman; Hank Chang, manager of marketing and product planning for the Specialty Division; and Hongder Chang, president.

(Kenda held another celebration at its The guests, including retired General Manager and headquarters in Taiwan on Sept. 28.)

Tire Division Vice President Steve Buck, were treated “We’ve enjoyed growing with Kenda, and look to food, giveaways, kids’ activities and warehouse forward to continuing with the relationship,” said tours.

C.J. Wood, director of business intelligence for The 400,000-square-foot Findlay distribution center Tire Discounters Inc. The 75-store chain, based in is the largest of the company’s 13 Tire Dealer’s Cincinnati, Ohio, sells Kenda’s consumer tire lines, Warehouse locations in the U.S. In addition to its including the new Klever M/T. Hercules and Ironman consumer and commercial Kenda manufactures passenger and light truck brands, the warehouse stocks Double Coin, Yokotires for the United States market at its new factory hama and Toyo commercial tires; and Deestone, BKT in Yuan-Lin, Taiwan. At full capacity, the new plant is and Solideal specialty tires. (Outside Ohio, the D/C’s slated to produce 5,000 units daily.

According to Bob Phoenix, the Automotive Division’s also stock Kumho, Toyo, Nexen, Falken, Federal and Yokohama consumer tires.) Here are some warevice president of sales, American Kenda’s goal is to house facts. have replacement market share of 1% by 2014.

He added that the company will be introducing the • It houses more than 525,000 tires. (Hercules is Vezda Eco, an eco-friendly tire featuring low rolling getting ready to ship winter tires.) resistance, at the 2012 Specialty • An average of 308,000 tires goes in and out of Equipment Market Association the distribution center each month (frst in, frst Show in Las Vegas, Nev., Oct. 30 out). Annually, that’s 3.7 million tires. through Nov. 2. It initially will be • It has nine forklifts, 21 employees and 44 loadavailable in 25 sizes. ing docks.

Hercules Tire & Rubber Co. opened its doors for the frst time in Inventory space at the 13 D/C’s adds up to 1.37 1952. In honor of its 60th annivermillion square feet. sary, the company opened the Vice President of Marketing Joshua Simpson doors to its distribution center From one strong man to another: Hercules changed in Findlay, Ohio — and invited its name from Atlas Rubber says Hercules is looking to add a western D/C soon. — Bob Ulrich plenty of friends and family.

Products Co. in 1959.

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MTD October 2012

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News/views TIA reveals keynote speakers for pre-show event The Tire Industry Association has lined up not one but two keynote speakers for its 2012 Tire Industry Awards ceremony.

The event is scheduled to take place on the eve (Monday, Oct. 29) of the Global Tire Expo at the Specialty Equipment Market Association (SEMA) Show in Las Vegas, Nev. The co-keynoters are Albert Wynn, former congressman of Maryland’s 4th district; Since leaving political offce, Wynn has and Jack Van Steenburg, chief safety offcer at the Federal Mo- practiced law at Dickstein Shapiro tor Carrier Safety Administration LLC, with a focus on legal and legislative (FMCSA). counseling.

Wynn served in the U.S. House of Representatives for 16 years.

During the majority of his time as a congressman, Wynn was an integral part of the House of Representatives’ Energy and Commerce Committee sponsoring such important legislation as the 2007 Energy Act, which included a tire fuel effciency Keynoter Van consumer information program. Steenburg’s career includes years as He was most recently chairman a New York state of the Energy and Commerce police offcer and the chief safety offcer at Committee’s Subcommittee on the FMCSA. Environment and Hazardous Materials, and was a member of the Subcommittee on Energy and Air Quality.

Van Steenburg worked as director of FMCSA’s Offce of Enforcement and Compliance before becoming chief safety offcer at FMCSA. He has been a major force at the FMCSA “in creating commercial vehicle safety initiatives while actively working to forge partnerships between government, law enforcement, safety associations, and industry,” says TIA. Prior to joining FMCSA, Van Steenburg was a highly successful New York state police offcer, rising in the ranks from trooper, sergeant, lieutenant, captain and major to staff inspector.

Wynn and Van Steenburg will be speaking at the Tire Industry Honors Awards Ceremony at 6 p.m. in the Cosmopolitan of Las Vegas. Admission is complimentary, although an RSVP is requested.

To reserve your place at this special event, visit the “Events” section of www.tireindustry.org and go to “Global Tire Expo.”

See more on the upcoming show on page 72.

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MTD October 2012

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News/views

bites

K&M buys two warehouses K&M Tire Inc. has purchased two of Reliable Tire Co.’s warehouses in Texas, one in Houston and the other in Dallas. Delphos, Ohio-based K&M Tire now has 14 wholesale locations serving customers in 20 states from Ohio to Texas. A 15th distribution facility is currently under construction in Barnesville, Minn.

IMT hires director of sales Iowa Mold Tooling Co. Inc. (IMT) has hired Don Daniels as the company’s director of sales. Daniels brings more than 30 years of experience in sales management and competitive sales strategy implementation to IMT. He will be responsible for leading the IMT sales team and helping direct business strategy for the company’s line of material-handling equipment and commercial vehicles.

Road Force Touch wins award Hunter’s Road Force Touch has received the Automechanika Innovation Award. Nearly 5,000 exhibitors from 79 countries attended the show in Frankfurt, Germany, presenting over 13,000 new products. The Road Force Touch, which provides quick, complete wheel and tire diagnostics, was selected for the award based on the technology’s innovation, functionality, safety, aftermarket relevance, and environmental protection.

TGI hires industry veteran Bill Hirst has joined Tire Group International LLC (TGI) as vice president of program sales for its domestic division. Hirst has worked in the tire industry for more than 33 years. His experience includes being executive vice president of sales for TBC Corp. and vice president of sales and marketing for Treadways Corp.

Kumho teams up with the Jets Kumho Tire U.S.A. Inc. will again partner with the New York Jets.

The 2012-2013 National Football League season will be the second consecutive season the two have teamed up. Kumho’s presence at Jets home games at MetLife Stadium will extend beyond being the team’s “official tire sponsor.”

The company’s on-site activation program, designed to engage fans, includes giving Jets fans the chance to win valuable prize packages.

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Manangoni marks one year for Unitread in the U.S.

One year ago, Marangoni Tread North America Inc. invested $7.5 million to construct a plant in Madison, Tenn., to produce Unitread precure treads. A celebration of that one-year anniversary was recently hosted by CEO and President Bill Sweatman Marangoni recently celebrated the one-year and Manufacturing Manager anniversary of its Unitread precure tread Chanthavy Vongsamphanh. plant in Madison, Tenn. It is the only tread In Sweatman’s address to manufacturer in U.S. and Canada not owned plant employees, he explained by a new tire manufacturer. the purpose and signifcance of this accomplishment. “Since the overall truck tire retread market in North America is expected to continue to grow, in order for us to maintain and grow our market share we had to add capacity. With this added production we can provide material for well over a million retreads annually.

“There is a great advantage to producing here in the U.S. rather than importing. Flexibility and responsiveness are big competitive advantages for us as well as our customers.

“We now have 60 retreaders in North America using Unitread and have produced over 150,000 units,” he said. “Both the growth in volume and the addition of so many new customers has been very gratifying.”

In 2002, Marangoni Tread North America moved from California to a 150,000-square-foot headquarters, manufacturing and warehouse facility in Madison. According to the 2012 Modern Tire Dealer Facts Issue, the company holds 4% of the retreaded truck tire market in the U.S.

Nitto wins fve digital marketing awards Nitto Tire U.S.A. Inc. has received fve awards in the 2012 Impact Awards, claiming the most nods than any other organization in the entire award program.

Developed by its digital agency of record, Cie Studios, Nitto’s creative Internet marketing programs — including digital strategy, website design and Facebook campaigns — received best-in-class in the following categories: • App Development Business to Consumer • Facebook Customization Features • Microsite Most Effective Use • Mobile Website • Social Media Campaign Promotional Strategy The Nitto mobile website showcases a sleek UI and design catered to a mobile audience. Nitto’s DJ Steve Aoki Facebook promotion tab also highlights the company’s effective use of the social media platform.

Nitto also was recognized for its Race Results App (iOS) — an app for motorsports fans that delivers the most up-to-date results and standings in such racing series as NASCAR, Formula One, NHRA and Formula Drift.

It demonstrates a simple, but effective design with intuitive features, the company says.

MTD October 2012

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News/views

bites

Ventus V12 OE on MKZs Hankook Tire America Corp. has entered into an agreement to supply the new Lincoln MKZ mid-size sedan with its ultra-high performance Ventus V12 evo tire.

Sizes supplied will be 245/45ZR18 and 245/40ZR19. The 18-inch size will be used for vehicles built for both the U.S. and export markets, while the 19-inch size will find use on vehicles built for export.

Michelin behind-the-scenes In conjunction with a new series of tire performance videos (directed by Academy-award winning cinematographer Wally Pfister), Michelin North America Inc. is offering car and film buffs a back-stage pass to the making of the videos. The behind-the-scenes footage, available exclusively on the Michelin Man YouTube channel, gives viewers a glimpse of all that goes into the creation of a tire performance video.

ASA conference sets record ASA Automotive Systems has declared its 15th annual InfoExpo Conference held in September in Tucson, Ariz., to be one of their largest and most successful user conferences to date. The four-day conference drew more than 130 attendees and delivered more than 30 sessions, 12 partner exhibits, along with special networking and social events.

Continental hires manager Continental Tire the Americas LLC has hired Gary Sass as U.S. sales manager for the Industrial Tire Business Unit. He will report to Carol Piechan, head of industrial tires in North and South America.

Also joining the industrial tire team in a newly created position is Jason Stickley, who will manage new business development in the U.S. He will report directly to Sass.

Conference spots going fast Online registration for the 2013 TIA OTR Conference in February is open. The conference will take place Feb. 20-23, 2013, at the Gran Melia Golf Resort in Rio Grande, Puerto Rico. World Golf Hall of Famer Chi Chi Rodriguez will speak at the conference. The golf tournament will take place on Thursday, Feb. 21, 2013, at the Trump International Golf Club in Coco Beach. For more information, see www.tireindustry.org.

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TIA reports: Free trade, open markets are best for the U.S. and China After three years, the U.S. trade tariff on tires imported from China expired at midnight Sept. 26, 2012, as expected.

The Tire Industry Association (TIA) says the duties or “safeguards” were established by President Obama’s administration to combat what the Department of Commerce found was Chinese tire manufacturers receiving subsidies ranging from 10.90% to 30.69%.

According to the Peterson Institute for International Economics, 1,200 American jobs were saved as a result of the Chinese tire tariffs. However, that tariff mostly benefted other tire exporting countries frst and American manufacturers second on the low-cost tires.

At the time of the imposition of these duties in 2009, TIA Executive Vice President Roy Littlefeld said, “The tire manufacturers made the decision years ago to shift production of these lower-cost tires out of the U.S. All this action will do is force the tire manufacturers to shift production of these lower-cost tires to other countries.” TIA says this is exactly what happened.

Recently, the Obama administration, in its continuing effort to establish a “level playing feld,” requested from the World Trade Organization (WTO) “dispute settlement consultations with the People’s Republic of China on auto and auto parts producers.”

TIA’s position is that free and open markets with level playing felds are best for the consuming public and the local tire dealership in providing the best price for the best product possible. The 22-page submittal to the WTO does not specifcally mention tires, but does address many related automotive aftermarket products.

Hankook hires Denlein as senior vice president of marketing and sales Hankook Tire America Corp. has named Shawn Denlein as its new senior vice president of marketing and sales for the United States region. He flls the spot vacated by Todd Hershberger in February 2011.

Denlein will be responsible for elevating brand positioning, driving sales and increasing Hankook’s market share in the U.S. He has close to 17 years of experience in the tire industry.

CORRECTION He most recently served as The illustration on page 50 in “Lookdirector of sales for Yokohama Tire ing forward, looking back” in the Corp.’s consumer division.

September issue of MTD does not “Shawn’s experience and undershow the cap ply discussed in the standing of the U.S. market makes article. The illustration was not suphim a valuable addition to the plied by the author, and is solely Hankook team,” says President Soo the responsibility of the MTD staff.

Il Lee. “As Hankook continues to grow in the United States, Shawn will take a leading role in our marketing and sales efforts.”

Denlein will work at Hankook’s headquarters in Wayne, N.J. ■ Pirelli CA67 and CN 36 tires.

MTD October 2012

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Market report

All eyes were focused on the expiration of Tarif 421

By John Healy and Nick Mitchell

W

e would frst like to say that we are thrilled to share our views on the tire industry with the readers of Modern Tire Dealer. We hope that our commentary, which summarizes our research, including conversations with wholesale and retail tire dealers, will provide the same insightful look at the industry that Saul Ludwig shared for so many years, which helped make Modern Tire Dealer’s Ludwig Report a must read.

Tis is an exciting time in the industry as demand trends at retail are stabilizing and the industry moves on without Tarif 421. We obviously don’t have to tell our readers how bad things have been in recent months. Despite the fact that gasoline prices jumped sharply in August, dealers reported that retail sales improved modestly during the period. Te stabilization appears to have been driven by the fact that many consumers have deferred replacement tires so long there is simply no tread lef on their tires, leaving them with no alternative but to pony-up the money for new tires.

From the wholesale perspective, the dealer destocking

How dealers view near-term business Dealers

APR

MAY

JUN

Passenger tire Will improve Will worsen Will stay level

43% 0% 57%

47% 12% 41%

40% 20% 40%

25% 12% 63%

60% 20% 20%

36% 18% 46%

Truck tire Will improve Will worsen Will stay level

50% 0% 50%

47% 20% 33%

42% 29% 29%

25% 12% 63%

38% 24% 38%

36% 9% 55%

R-Revised

JUL(R) AUG(P) AUG(11)

P-Preliminary

continued with all eyes focused on September 26, a date that was circled on everyone’s calendar, as the industry waited to see if Tarif 421 expired (it did). We now anticipate that wholesalers will be less reluctant to buy tires. Hopefully, this coincides with a rebound in consumer demand.

Monthly survey

A number of independent tire dealers were surveyed concerning current business trends. Except for tire prices and costs, the results of the August 2012 survey are compared with those of August 2011.

Passenger tire dealers remained optimistic

According to our dealer survey, roughly 60% of passenger tire dealers believed business will improve over the next

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six months while 20% believed it will stay about the same.

Some 20% believed it will worsen. Truck tire dealers were not so optimistic, as 38% saw business improving, which is roughly equal to the amount of dealers that saw business staying about level. About 24% felt business would worsen.

Unit demand was lackluster in August

According to dealer reports, on average, retail sales of new replacement passenger tires were down 1% when compared with August 2011. While unit sales were still down, the modest pick-up is encouraging given that there is still a great deal of uncertainty in the economy and retail gasoline prices rose 8.1% in the month to $3.78, or 2.3% higher than August of last year. Truck tire sales were up 2% in August, which was consistent with growth rates in July, while retreaded tire sales grew 2%.

Tire prices were unchanged in August

In comparing August 2012 with July 2012, the average cost for a size 215/60R16 major brand tire was essentially fat, as was the average price. Te average cost for a 215/60R16 private brand tire was down 1% while the average price was fat.

Pricing got aggressive on the passenger tire side

In August 2012, 62% of passenger tire dealers saw pricing as aggressive while 31% saw it as normal. Seven percent of the passenger tire dealers saw it as frm. However, 45% of truck tire dealers saw pricing as normal with the remaining 55% saw it as aggressive.

Dealers started to restock inventories

Te survey indicated that only 30% of passenger tire dealers believed inventories were too high (vs. 75% in July), with the other 70% believed inventories were just right. Among truck tire dealers, a mere 13% indicated that inventories were too high (vs. 37% last month), while the other 87% noted that their tire assortment was in line with current business levels.

Service business continues to show strength

Dealers who provide automotive service reported that 31% of revenues, on average, were generated by service during August. Dealers indicated that service business grew by 7% in August 2012 vs. August 2011. Service business picked up sequentially, as it rose 6% year-over-year in July. ■

John Healy and Nick Mitchell are research analysts with Northcoast Research Holdings LLC based in Cleveland, Ohio. Healy and Mitchell cover a variety of subsectors of the automotive industry.

MTD October 2012

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feature

Ludwig on: everything For the last time, we ask our favorite analyst to talk about the issues that will afect you

By Bob Ulrich

W

hen changes occur in an industry, two things happen. First, those who view the change as an opportunity usually come out stronger, and secondly, those who view change with apprehension and uncertainty usually come out as losers.”

Tire industry analyst Saul Ludwig wrote those words in January 1973, the frst time he graced the pages of Modern Tire Dealer. Bias-ply and bias-belted passenger tires made up 87% of the replacement market. Fiberglass (!) was a tire material of great promise.

Tose automotive afermarket trends are gone. However, Ludwig’s partnership with MTD has endured — until now.

Afer almost 40 years with us, and 45 years as an analyst, Ludwig has decided to begin the almost inevitable transition to retirement. He has handed his duties covering the tire industry for Northcoast Research Holdings LLC to fellow analysts John Healy and Nick Mitchell, and will stay on to mentor them.

Te “Ludwig Report,” which began as “Te Marketplace by Saul Ludwig” in April 1975, will now be called the “Market Report.” Manned by Healy and Mitchell, the report will continue to help tire dealers keep track of, well, you know.

In this exclusive exit interview, Ludwig not only outlines the issues tire dealers will be facing in the near future and beyond, but also elaborates on them. His confdence in the independent tire dealer remains strong.

“Tires are a sophisticated purchase,” he says. “Selling tires requires a litle hand-holding so that the consumer gets the right tire at the right price. Tere’s such a wide spectrum of brands and prices out there.”

We asked him, “What changes are now occurring in the industry that will afect tire dealers for years to come?” Read his answers — and, as he suggested 39 years ago, view them as possible opportunities to survive and thrive.

Legislation: Tere are a myriad of legislative activities that will infuence the tire industry in the future: tire labeling; the whole concept of imports — and tarifs as a protective measure; the ongoing debate on the longevity of a tire.

Tis is the second time around with tire labeling, which I expect will replace the Uniform Tire Quality Grading system soon. How will future Congresses view the need for tarifs, especially afer the 25% tarif on consumer tire imports from China expired? I don’t know. Whether it’s China or some other country, protectionism might still rear its head again.

Tose are legislative issues that can be addressed or readdressed in the years ahead and will be. An analyst has to stay on top

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of them because they directly afect the proftability of tire manufacturers. Tey also could afect consumer preferences.

Consumer buying habits: Internet shopping has changed the way consumers buy things.

If you want to buy a computer, you put in the model number, find out what the best price is and you buy it and have it delivered. And certainly there are a lot of Internet shopping comparisons on tires. However, the average consumer doesn’t understand the complexity of the tire, plus there are so many diferent brands. Te consumer may start with Internet shopping and go into the tire dealership armed with knowledge of prices, but I think he’s still going to need some professional guidance.

There are several organizations selling tires over the Internet that have been prety successful, like Tire Rack.

Discount Tire also has a huge Internet tire sales organization.

So does TBC. One of the questions I wrestle with — and don’t have a hard-core answer for — is the trend toward larger and more complex tires at OE. I think today, only 40% or 50% replace their OE tire with the brand that came on that car. But the way new cars are being designed, with the tires being tuned to the suspension systems of those cars, there may be a greater propensity to replace the OE tire with the same brand.

Tire manufacturing trends: I think there’s going to be a trend toward building new plants where you expect to sell the tire versus building solely export plants. Te increasing use of automation, and the resulting decrease in labor required, means there is less need to build in low-cost countries. For example, Bridgestone, Continental and Michelin are investing here in the United States, and they are not building these plants to export consumer tires. It’s the same with Sumitomo in Brazil and Goodyear in China. Tere will always be some plants

MTD October 2012

Saul Ludwig, clockwise from top right: December 1983 (“Gross margins of most dealers were shaved again”); December 2007 (“Michelin, Bridgestone, Goodyear and Cooper will not be shy about further plant closings if needed”); SEMA Show, November 2009 (“Most dealers and distributors bought as much Chinese product as possible before the tariffs went into effect”); December 1997 (“Mass acceptance of run-fat tires is several years away”); February 1979 (“The union and management are working more closely together than ever in the past”); on accepting TIA’s Friend of the Industry Award, October 2007 (“The most important reason I’m here is my connection to the independent tire dealer”); inset, middle, December 2009 (“Very simply, the recession took a toll on the tire industry”).

Ludwig on: consolidation “With private branders, I think there’s going to be some sort of consolidation. And I don’t see any new private brand companies emerging.

“I also think that at the manufacturing level, we’re going to see some more global consolidation.

There are probably over 75 tire manufacturers globally that are chasing a market that grows 2% to 3% a year, and I think that’s too many players for too little business.”

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Ludwig interview that are built for exporting tires. Some of the smaller players are building plants to export into other countries in order to encroach on market share there, but more automation and a greater interest in building plants where those tires are going to be sold will be the trend.

Tire company philosophies: I wonder if there’s going to be more segmentation, with tire manufacturers becoming more niche-focused. Goodyear is reducing the number of SKUs to try to target specifc markets — not all of them. Te SKU proliferation is the greatest it’s ever been, and manufacturers can’t serve all masters. Pirelli’s a good example of a company that has a niche strategy and has been very successful. Michelin has somewhat of a niche strategy in that they only produce high-end tires.

Distribution from the manufacturer’s point of view: I think the trend toward using more wholesale distributors is going to continue because they are best suited to serve smaller dealers. Tere are always going to be small independent tire chains because we’ve got so many small cities around this country. Tey need to have tire dealers, and the tire dealers will need wholesale distributors to keep up with the proliferation of tires and sizes.

Tat’s why you’ve seen wholesale distributors like ATD be very aggressive and acquire other distributors. I also think you’re going to see more consolidation at the distribution level.

Dealer Tire LLC: Dealer Tire is a fabulous success story. Tey’ve taken a business from nothing to over a billion dollars today. And when you think about it, they are doing that all Ludwig on: domestically with just tires.

Auto dealers have to fnd OE business a way to make their repair “In the past, tire manufacturers departments more productypically lost money on original tive because not a lot goes equipment business, but I think wrong with cars today. I that has changed. I think their bought a new Toyota this proftability on OE tires has imyear and for the frst 25,000 proved greatly. miles, I get free service!

“Because of that, the same So selling tires is one of manufacturers who used to think the ways that is occurring, about how they could limit their and Dealer Tire is teaching OE ftments now have a greater them how to sell tires. It’s interest in getting wheel positions a total concept of training, on cars, reversing what has been warehousing and delivery, a little bit of a downward trend. and they are only dealing “Look at Goodyear’s recent fin OE tires. nancial results in North America.

Tey’ve got a lot of runIn the second quarter, the comway ahead of them in terms pany’s replacement units were of growth potential. Teir down 10%, while its OE units were opportunity and challenge up 12% — and Goodyear had allis to take their concept and time record earnings. It had to be make it work internationmuch more proftable at OE for that to have happened.”

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Ludwig (top) graced the pages of MTD for the frst time in January 1973. “As domestic capacity increases for radials in 1973 and 1974, I would expect imports to begin to decline as a percentage of total replacement tire sales,” he wrote at the time. While with KeyBanc Capital Markets Inc. (left), he flmed live interviews for CNBC and Bloomberg.

ally, and possibly add other products to their distribution. While they are distributing tires, maybe they should distribute wiper blades or oil flters. Dealer Tire’s fantastic growth would suggest they’ve been successful in winning the hearts and minds of those new car dealers who buy tires from them, so the potential for selling them ancillary products is there.

China and/or other low-cost countries: When you talk about China and other low-cost countries, I guess the thing I worry about is the lure of China. Are there too many plants being built? Is demand being overestimated? Tere are about 1.2 billion consumer tires sold a year; if the market grows about 3% annually, you would need another 30 to 40 million tires a year to keep up with demand. Tat means fve to 10 new tire factories a year, and there are now more than 50 tire plants, if you include truck tires, in various stages of production. I worry that maybe if they all are built and come on-line when the tire manufacturers said they would, we will have too much capacity.

I’m not ready to make that call, but it is something that I monitor. Growth in China is the wild card. If the rate of growth in demand parallels the growth in supply, that would be fne. If the demand is not quite as good as the manufacturers building the tire plants expect, then there will be overcapacity. China’s still geting 6% to 8% GDP growth, which is prety fantastic. ■

MTD October 2012

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feature

Bigger tires in a growth market And the focus is on CUVs (at the expense of SUVs)

By Bob Bissler

FX4, Toyota TRD, and their Jamieson, director of product of-road specialization like management, Cooper Tire t’s a race for market dominance. the Jeep Wrangler.” & Rubber Co. “Te CUV Consumer demand is causing As OEMs continue to vehicle gives the consumer dynamic shifs in the light truck, shif designs away from the look and functionality sport-utility vehicle (SUV) and cross- traditional body-onof an SUV, with typically over-utility vehicle (CUV) market. As frame construction to beter gas mileage and a this market evolves, tire makers are passenger car chassissmoother ride.” challenged to keep up with OEM and based designs, many Jamieson says Cooper consumer demands. tire makers see demand expects to see the CUV Tis segment started increasing for CUVs over market continue to grow. as an evolution SUVs. He sees that same growth “New vehicle sales have with tires. of the pickup “Year over year, CUV tr uck chas- shifed dramatically from sales have increased, sis designed SUVs to CUVs over with bodies the past few years Bridgestone says the Firestone largely steered by adept at car- while truck volumes Destination LE2 offers wet and consumer needs and rying people have stabilized as a dry performance, ride comfort, all- expectations,” says season performance and improved and cargo. percent of the total,” fuel effciency. It comes with a Robert Chew, brand It evolved says Rod Hutchinson, 60,000-mile limited treadwear war- manager, marketing, into differ- product manager for ranty and is available in 37 sizes Falken Tire Corp. ent vehicle Bridgestone Ameri- ranging from 15 to 20 inches.

“CUV performance sub-segments cas Tire Operations. “Tis is causing continues to increase at the OE level, that are more an increase in the demand for CUV- and we recognized the need for a serious specialized to focused tires.” performance CUV tire to meet these certain consumer Hutchinson says Bridgestone expects demands.”

CUVs to continue to drive growth of Chew says that market demand has Toyo says its Open Country A/T II highway commuting and sport tires. driven the development truck/SUV all-terrain tire features While CUVs gain popularity, cus- of Falken’s A zestrong all-season performance, an aggressive tread design and a quiet tomers are demanding bigger tires in nis FK453CC, ride. It comes with a 65,000-mile this segment. Hutchinson which he says is warranty for P-Metric and Metric sizes says light trucks, SUVs well-suited for that range from 15- to 20-inch rim and CUVs represent vehicles such as diameters. about half of the the BMW X5. needs, and in a variety of sizes. new vehicles be“The most “Tere are SUVs and crossing sold in the growth is in overs that are salient for their market. But it’s CUV tires,” performance, like the Range no three-way says Suzanne Rover Sport and the Porsche s p l i t . CU Vs Mitchell, manCayenne,” says Al Mendoza, and their tires ager of brand segment marketing manager, are changing the development, Goodyear Tire & Rubber Co. balance.

Hercules Tire & “Tey are also salient for their “Te SUV mar- Rubber Co. “Crossfuel efciency like the Mazda ket will continue The Cooper Discoverer A/T3 features CX-5, their people-moving/towto decline, as many a silica-based tread compound that ing capabilities as with the consumers provides strong wet traction and Chevrolet Tahoe and Ford Kenda says the Klever A/T offers the h av e b ee n handling and cut and chip resistance.

Expedition, their all-terrain weekend off-roader a long-lasting crossing over It is available in fve black sidewall sizes ranging from LT215/85R16 to and rugged looks for the working capability thanks to op- tire to the CUV LT275/65R20, and 27 white letter professional. It has a 660 UTQG rating tional of-road packages and comes in 15 sizes ranging from s e g m e n t ,” sizes ranging from LT235/75R15 to like Chevy’s Z71, Ford P235/65R17 104S to 278.50R14LT 95Q. s ay s Sco tt LT285/65R18.

I

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MTD October 2012

over vehicles are still enjoying tremendous popularity in the U.S. because they offer the versatility of SUVs and light trucks, but ofen with beter fuel efficiency and a smoother ride.”

Explorer went from being an SUV to a CUV in its 2012 model. However, there are still many SUVs in the vehicle parc due to consumers keeping their vehicles longer.”

“Tis will always be a strong segment in the tire industry,” says John Hagan, senior director of sales, Toyo Tire U.S.A. Corp.

“Te future growth will mainly come from the CUV segment and then the SUV segment. Te population of CUV vehicles has signifcantly grown in recent years and the time is coming when many of them will be in need of tires. Tis is when we will start to see the true demand in this segment.”

The Hankook Dynapro HT provides a smooth, quiet ride in all-season conditions. It is designed to provide long tread wear, good snow traction and low-rolling resistance. It is available in both P-metric and LT-metric sizes ranging from 15 to 20 inches.

Mitchell says she is seeing tires designed specifcally for crossover vehicles and more and more lines with sizes to accommodate crossovers.

“We introduced our first crossover offering last summer — the Hercules Roadtour XUV — and have had tremendous response,” she says.

“As this shif continues from traditional Goodyear’s Assurance TripleTred light trucks and sport-utility vehicles to All-Season premium tire features a car-based CUVs, tire manufacturers have directional tread pattern and Evolving also adapted and made the shif to more Traction Grooves. It is available in 22 and P-metric sizes ranging from specialized CUV tires while continuing to metric 195/60R15 88H to 215/55R18 95H. ofer LT and SUV tires,” says Rick Brennan, vice president of marketing for Kumho And while tire makers expect CUV Tire U.S.A. Inc. “Tires specifcally growth to remain strong, the evolvtargeted at CUV owners are ing nature of the market makes steadily increasing because it hard to predict the future they offer an improved of the segment. combination of smooth “The crossover-utility ride, low noise levels and vehicle market is a tricky beter fuel economy — one,” says Cooper’s Jamiesome of the same features son. “Traditionally, the that lead consumers to tires for CUVs come from choose CUVs over SUVs passenger lines and/or in the auto market.”

SUV lines; it all depends “We are seeing fewer on the vehicle platform that and fewer true SUVs and the CUV is built on. The more CUVs,” says Patrick current trend for tires is to Kirby, business segment diofer a specifc CUV line that rector for Michelin focuses on the sizes North America Inc. Yokohama says the PARADA Spec-X and speed ratings that “We are fnding that is designed as an inch-up ftment for are designed for the very few true SUVs heavier vehicles and a CUV/SUV OE needs and expectareplacement. It offers an aggressive remain in OEM’s look without sacrifcing performance, tions of consumers p o r t f o l i o s . Fo r and is available in 40 ftments in 17who purchase CUV example, the Ford to 32-inch sizes. vehicles.”

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LT/SUV/CUV tires It’s a mater of size

“Larger rim diameter sizes are gaining a greater percentage of the replacement market in this segment as more 18- to 20-inch OE larger SUV and crossover fitments arrive at first replacement,” says Jon Vance, TBC Wholesale Group director of marketing.

“More traditional passenger tire offerings are increasing the size line-up

to include more CUV ftments,” says Kumho’s Brennan.

“Tese oferings are infltrating traditional light truck sizes as more CUV owners (and SUV owners) look for passenger tire features such as high mileage, quiet ride and improved ride comfort.”

Brennan says that larger rim diameters are becoming more prevalent as original equipment on sport-utility vehicles and

even crossover-utility vehicles. The migration from traditional 16-, 17-, 18-, 19- and even 20-inch rims, is becoming more common. “ Ta k e t h e 2013 Toyota Ve n z a ,” s a y s Brennan. “The OE offerings for this vehicle are 19The GT Radial Savero HT2 premium all-season highway LT/SUV tire is backed with a 40,000-mile limited tread wear warranty. Available in 33 Pmetric and LT sizes (for 15- to 20-inch rims), the tire’s tread pattern provides excellent handling and comfort.

inch in four-cylinder and 20-inch for the V6. While this expansion to larger rim diameters is not a new trend as of the early-2000s, tire manufacturers have taken notice and must increase size oferings to match the needs of these newer vehicles.”

“In SUV tires, there appears to be a growing number of larger ftments,” says Hercules’ Mitchell. “We expect to see more LT tires with larger rim diameters carrying heavier loads — many 18-inch sizes, but ranging from 17 to 20 inches.”

“We expect the light truck, SUV, CUV market to grow, especially in the replacement market,” says Hankook Tire America Corp. “We also expect to see larger OE sizes, up to 22-inch, leading to shorter aspect ratio size ftments.” “ We see a higher mix of tires with lower aspect ratios and larger wheel diameters,” says Goodyear’s Mendoza. “New pickup truck sales Falken’s Azenis FK453CC features an asymmetric tread composed of a new silica enriched compound. Falken says the tire’s rigid carcass was built to excel in high-speed handling conditions. It is available in sizes ranging from 17- to 20-inch diameters.

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MTD October 2012

have also grown in double digits recently and will continue to do so. The vast majority of base vehicle models are now coming with 17inch wheels and popular upgrade ftments that include 18-inch and also 20-inch tires.”

The Maxxis HT-770 premium highway terrain all-season tire features casing stiffness and added tread reinforcements. The tire features a closed-shoulder design and multipitch technology. It is available in 39 sizes ranging from 265/50R15 to LT275/70R18.

Keep on trucking

replacement market in the future,” says Briggs.

Goodyear’s Mendoza agrees.

“On the light truck side, we see greater demand for larger pickup trucks and heavyduty trucks,” he says. “As the country comes out of the recession, we see more and more consumers upgrading into newer trucks, whether because they need them for their occupation, or for fun.”

Mendoza says that traction and towing capability are demanded by this consumer, and Goodyear answers that need primarily with its Wrangler lines.

“The light truck market looks to be holding steady,” says Cooper’s Jamieson.

“Sales continue to be good, but litle growth is expected over the next several years. Cooper will continue to strengthen i t s D i s c overer brand s by updating its products with the latest tech-

Despite the migration to CUV ftments, the LT segment is holding its own. Te current economy is afecting the light truck market as the efects of the recession gradually recede.

“We see the demand for pickup truck tires increase as the workforce grows with the economy,” says Barry Terzaken, light The Nexen Roadian HT highway-tertruck product manager for Continental rain tire features a computer-designed Tire the Americas LLC. tread pattern tuned to meet the “Te current market for LTR tires in needs of each OE vehicle. The Roadgeneral is still quite strong,” says Andrew ian HT is available in 10 sizes ranging Briggs, director of product planning, from LT215/75R15 to LT245/75R17.

Yokohama Tire Corp. “We expect the segment as a whole nology giving consumers the to show moderate growth performance and quality they over the course of the next expect.” few years. Nearly every vehicle manufacturer’s Large demands on tire makers truck sales have been on the rise this year.”

As the LT/SUV/CUV Briggs says light vevehicle market continues hicle sales as a whole to change and grow, tire have increased in 2012, makers identify the debut many manufacturmands of the consumers ers’ truck divisions still driving the replacement account for a greater tire market. percentage of their overall “Crossover owners are looking for a tire business. Te botom line is that there are The Hercules Terra Trac D/T traction with more tuning for a lot of new trucks, tire features enhanced stud hole comfort and a quiet SUVs and CUVs on placements for solid winter traction ride while delivering and lateral channel grooves that the road. tread wear, traction evacuate mud and snow. Backed with “Tis means con- road hazard protection, it is available in and fuel economy,” tinued sales for the 10 sizes ranging from 15 to 18 inches. says Bridgestone’s

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LT/SUV/CUV tires Hutchinson. “Meanwhile, all-terrain fciency a key factor in consumers’ Fuel efficiency is and mud-terrain tire demand should minds. To meet this demand, certain to remain a remain steady with a focus on tread wear, Continental engineers devised top item that contraction and durability.”

EcoPlus Technology, which is a sumers and OEMs “Tere are a few key trends feature of the CrossContact demand. evident in the segment — LX20. Terzaken says it “The current growth, fuel efciency delivers a balance of high t re n d i n t h i s and high customer fuel economy, strong market segment expectations,” says wet braking and good is lower rolling Continental’s Terzatread wear through the resistance,” says ken. “Vehicles in this use of EcoPlus.

Hankook Tire segment continue to “We see that newer America Corp. raise the bar by promodels are more fuel ef“That is for imviding unprecedented fcient thanks to lighter proved fuel economy levels of comfort, curb weights and and improved TBC Wholesale Group’s Eldorado luxury and exceptional progress in engine ZTR Sport XL features beveled and tread wear.” handling, while delivtechnology,” says notched tread elements, alternating “Gas prices ering the utility cusGoodyear’s Men- shoulder lug patterns and an optihave had an tomers need. Improved doza. “Goodyear in- mized tread footprint. It is available effect on this 44 metric and LT sizes in 15- to performance expectations novates and answers in segment and 20-inch rim diameters. place increased The Kumho eco Solus KL21 CUV to the conconsumers demands on the tire’s design improves performance sumer’s need for beter fuel seem to be sticking to OE fitments,” vehicle’s tires.” attributes like ride comfort, steering efciency with Goodyear says John Aben, senior vice president Te r z a k e n stability and wet and dry traction.

Assurance CS FuelMax, sales and marketing, Nexen Tire America says high fuel Backed by a 60,000-mile tread wear a fuel-efcient SUV tire Inc. “Consumers are looking for value, warranty, it is available in 23 sizes prices continue with rim diameters ranging from 16 that provides confdent they don’t want to give up comfort and to make fuel ef- to 20 inches. all-season traction.” handling is important.”

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MTD October 2012

Michelin says the Latitude Tour provides the strength and confdence of a truck tire and the ride and comfort of a passenger car tire. An advanced tread pattern enables more strength during braking or turning. The Michelin Latitude Tour is offered in 75 sizes for wheels from 15 to 22 inches.

“With the industry moving toward improving rolling resistance without sacrifcing strong performance, P-metric tires with all-season compounds work just fne,” says Eric Yang, automotive marketing manager with American Kenda Rubber Industrial Co. Ltd. “In addition, with a depressed economy, P-metric tires use less rubber to make and are therefore cheaper in price.”

However, the challenge of vehicle fuel efciency doesn’t relate only to the design of the tires.

“With the high gas prices, auto manufacturers are trying to keep sales steady by ofering alternative engines to the popular V8 and making trucks less expensive to run,” says John Wu, assistant product manager for Maxxis International.

“Development into inThe General Grabber HTS features improved fuel economy from EcoRide compounds. A quiet, comfortable ride is provided by Comfort Balance technology. A broad range of metric, LTmetric and fotation sizes are available in rim diameters through 20 inches.

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creasing tread wear will be the focus of many tire manufacturers. Tere is still a lot of room to improve in terms of technology in this segment.”

While there will always be room for improvement with tire technology, there is also much reason for tire manufacturers to remain optimistic about the future.

“Research indicates that the tire segment in North America that serves the SUV/ CUV vehicle segments is projected to grow 4% per year over the next 10 years,” says Michelin’s Kirby.

“For performance, the manufacturing and consumer focus on value-added features such as car-like ride and handling quality, all-weather, year-round traction including snow and ice and extended tread

Continental says the CrossContact LX20 delivers a balance of good fuel economy, confdent wet braking and tread wear through EcoPlus Technology. A broad range of metric, LT-metric and fotation sizes are available in rim diameters through 20 inches.

wear mileage will continue as consumer expectations for ‘kitchen sink’ real world performance drive the features and benefts of these products,” says TBC Wholesale’s Vance. “Tese performance expectations hold true up and down the price scale.”

Vance says these consumer expectations are due to the trend of the increasing ability of low-cost-country manufacturers to deliver products for this segment that are much more in line with the performance, appearance and sizing demands of the North American SUV/LT market.

“Tese products will continue to be introduced in the market going forward, challenging the ‘majors’ to seek diferentiation through technology and more ‘unique’ value-added features,” says Vance. ■

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feature

Boundaries? What boundaries?

Te Philadelphia market is more than just a city – or county. As it changes and expands, these four dealers continue to meet all demographic challenges Second of two parts

T

By Bob Ulrich

he city of Philadelphia and the county of Philadelphia are one in the same.

Metropolitan Philadelphia, however, encompasses western New Jersey (separated from the city by the Delaware River) and northern Delaware in addition to southeast Pennsylvania.

Tire dealers two counties away can — and do — reach Philadelphia residents with radio and television advertising. Te whole metropolitan area is commonly known as the Delaware Valley.

“Tere are these divisionary lines that don’t Allen TireÕs Harbison Ave. store in northeast Philadelphia received a hold water,” says Ricky Blat, owner and service Nexen-themed makeover earlier this year. The purple, yellow and white manager of Blat Tire & Service. His is the closest color scheme and the illusion of a car on a lift (center) creates a buzz. dealership to the Historic District, also known as the “Old City,” in downtown Philadelphia.

Mayfair Tire & Service Center Inc. out-services everyone “It’s only a 15 to 20 minute drive to New Jersey. Montgomery in a crowded area of Philadelphia known for its row housing.

County and Philadelphia County are separated by a street. It’s Bustleton Tire and Service, also known as Bustleton Goodyear, not like areas are separated by the Berlin Wall.” peacefully co-exists with a nearby Sears Auto Center and Pep Tere is plenty of competition for customers in the area. Boys Supercenter.

In this second of a two-part series that began in August, we And outside of Philadelphia in Berks County, located profle four retailers who have experienced continued success northwest of Montgomery County, CJ’s Tire & Auto Services despite ever-changing demographics. Tree are from northeast has 12 stores going on 150.

Philadelphia.

“I’m not worried about the big box stores,” says Craig Myers, Allen Tire & Service uses its wholesale warehousing and strong co-owner of Allen Rubber Co. Inc., which does business as partnership with the Nexen brand to make a name for itself. Allen Tire & Service. “Tey can compete with me on price, but certainly not from a service side or a knowledge side.

“It’s just a job for the guy working at Sears. He might want to do something else with his life. My managers — they’re in it for the long haul.”

Here are some of the retail prices for a V-rated, size Other independent tire dealers are a diferent story, according 225/50R17 tire sold in metropolitan Philadelphia. The to Myers. “Tey are good competitors. Tey don’t beat the pricing includes installation. price into the ground. Tey don’t sell refrigerators or other products that they can mark up so they can low-ball tires.”

Philadelphia pricing

Mayfair Tire & Service Center High: $247.49 (Michelin Pilot MXM4) Low: $141.94 ( Nexen CP641) Bustleton Tire and Service High: $235.50 (Goodyear Tripletred All-Season) Low: $155.45 (Dunlop Signature II) CJ’s Tire & Automotive Service High: $231.19 (Michelin Pilot Sport A/S +) Low: $130.71 (Hankook Ventus V2 Concept H437)

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Allen Tire and customer retention

“Northeast Philly is so big, we have two retail stores,” says Myers, who describes the immediate area as blue collar but diverse.

(Only 14 miles away in Camden Count, N.J., Allen Tire has a third store that does business as Trio Tire & Service. It is located in Cherry Hill, a suburban, afuent area.)

One of the Philadelphia stores recently received a Nexenthemed retail makeover, complete with a bay door wrap that

MTD October 2012

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Philadelphia Challenge

Left to right: Mayfair Tire and Service owners Ron and Kenny Hughes and Charles “Chalie” Mirro share a laugh with customers. “They know what they are looking for and are very knowledgeable,” says Mirro.

makes it look like the store is busy even when the door is closed.

Changing the landscape is one of the ways Allen Tire helps bring potential customers to the store. Myers says the company works very hard to keep them coming back as well.

New customers are surveyed to fnd out “how you got to us,” he says. Te brief “Penny for your thoughts” survey is literally that: Customers receive a penny encased in an Allen Tire keychain for completing the four question survey:

1. “What brought you to us today?

2. “How did you fnd us?”

3. “Were there services you needed that we do not ofer?”

4. “Do you have any suggestions to help us make your future visits beter?”

Every customer also receives a “thank you” note in the mail personally signed

by Myers. And each note comes with a $5 of any repair or purchase coupon.

Customers are encouraged to tell their friends about Allen Tire; if one comes in, the existing customer receives a $25 gif card.

“I still think it’s cheaper to invest $25 for a new customer than the amount you would spend on all the advertising and lead generation.”

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Allen Rubber Co. was established in 1929. Myers and Brad Goldstein purchased the company in 1982. Tey have since added two partners: Craig’s son, Wes, and Phil McConnon, vice president of Allen Tire’s wholesale division.

“Since Craig and I came to Allen Rubber, the business has changed dramatically,” says Goldstein. “Te recapping has long been discontinued, and all energies are directed toward a major, multi-diverse distribution of various brands of tires.”

In addition to Nexen, Allen Tire’s primary brands are Yokohama, Toyo, Michelin, BFGoodrich, Uniroyal, Toyo, Continental, General and Firestone.

Earlier this year, the company launched its Web store (www.allenrubber.com) powered by Tire Company Solutions Technologies.

“Te new Web store will simplify the tire and car care buying process for consumers, making it easy for them to shop online for tires, schedule auto service, or receive an online quote,” says Myers.

Who doesn’t like Mayfair Tire?

Customer service is not lip service to the owners of Mayfair Tire and Service in northeast Philadelphia.

Ron and Kenny Hughes and Charles “Chalie” Mirro are equal partners in the business. Ron, who joined the company

MTD October 2012

Quik-Link: 800-687-1557 ext. 21115

Philadelphia Challenge in 1990 and is now president, says customer service is the key to the business.

“We’re not considered the cheapest, but our pricing is afordable,” he says.

Tat is even more important as the neighborhood tries to recover from the recession.

Te dealership was started in 1986 by Ron and Kenny’s late father, Joe Hughes Sr., and older brother, Joe Jr., who eventually sold his share of the business to Mirro.

“We grew up two blocks away from here,” says Ron. “My

dad always walked past this corner and said that it would be a good place for a tire shop.”

Twenty-six years later, it still is, despite a lack of space.

Mayfair stocks some 250 tires, specifcally the Continental, Goodyear, Dunlop, General and Federal brands. Te store relies heavily on nearby wholesalers like Allen Tire to get tires when needed, which is why Ron says all major brands are available.

“It was worse until renovations. We had three bays, now we have fve. And we rent a double bay of Ammco Transmission next door. We have a lif over there.

“With the phones always busy and people coming in, there’s always something going on here. I call it the Pat’s Steaks of the automotive and tire business!”

(Pat’s King of Steaks, a Philly mainstay since 1930, is famous for its steak sandwich — with or without Cheez Wiz.) According to Hughes, the neighborhood unfortunately has changed from upper middle class to middle class on its way to lower middle. Mirro, who grew up in south Philly, says their customers price shop.

“For the most part, people are looking for middle-of-the-road type rubber in this area. Tey want to think they are geting a good buy for their buck.”

Word of mouth Its customers consider Mayfair great At a visit to Mayfair Tire and Service Center Inc. earlier this year, it became apparent why the onestore dealership is so successful in northeast Philadelphia, Pa. “They’re the best,” said Mike McGuigan, who recently was getting his tire repaired, plus an oil change. “They’re honest. They take care of you.

“If the car isn’t worth fixing, they’ll tell you, instead of letting you dump money into it. They’ll tell you to go out and get something else to drive.”

On the same day McGuigan was getting his car serviced, there were three women in the showroom. They all agreed Mayfair was the place to go.

“This is the only dealer you can go to and won’t get robbed,” said one of them. “They are honest.’

“They tell you the truth,” echoed another. — Bob Ulrich

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Quik-Link: 800-687-1557 ext. 21116

MTD October 2012

Quik-Link: 800-687-1557 ext. 21117

Philadelphia Challenge dba Bustleton Goodyear

Eric Russo, co-owner and store manager of Bustleton Tire, agrees that the demographics in northeast Philadelphia are ever changing.

“It’s defnitely blue collar. It’s very ethnic now. It’s changing all the time. When I got here, it was more Russian. Now it’s a lot more Asian.”

Near his store, there is a lot of Section 8 housing for families with low or fxed incomes. He describes the area as a “low price market.” He also says his customers are more demanding than in the past, but loyal if they believe they are geting a good deal, whether that’s the least expensive tire or not.

“Tey want to know what they are paying for. Tere’s no carte blanche anymore.

“It’s also all about convenience. Why do you think Wawa (a chain of convenience stores in Pennsylvania, New Jersey, Delaware and Virginia) and 7 Eleven do so well? People don’t want to go two blocks. Tey want to go one block.”

Te Sears Auto Center down the street from Bustleton is both a competitor and an ally, says David Sovani, the onestore dealership’s co-owner and service manager. “Tey send work to us.

“We try to not to look at everybody as our competitor. We try to think of us as their competitor.”

In addition to Goodyear, it ofers the Dunlop, Kelly and MAST (Michelin Americas Small Tires) brands. It also stocks some Kumho and Hankook tires.

Bustleton Tire is part of the Main Line Tire Group and the Delaware Valley Independent Goodyear dealers.

Bustleton Tire co-owner Eric Russo, left, attempts to help automotive technician Bobby King alleviate brake noise on this vehicle. Russo started the business in 1991.

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Chris Santoro manages the new CJ’s media center. “We’re taking the phones out of the stores,” he says. “It’s all about trying to change the customer experience. We’re slowly getting all the stores in the company live with the media center.”

For CJ’s, the future is now

Imagine a tire store without a sales counter. Everyone, even the customers, use iPads to buy their tires.

Tat’s what Bill Bainbridge, director of marketing for CJ’s Tire & Automotive Service, envisions happening, and sooner rather than later. So instead of waiting, he is outfting his 12 stores with the tools necessary to meet the needs of customers in the near future.

Te company’s fagship store in Birdsboro, Pa., in Berks County, is being designed using a pod strategy, without a sales counter. “It breaks down barriers,” he says. “If you are standing behind a counter, how can you interact?

“Selling is more interactive, more casual, and as technology develops to use a tablet, we’ll be ready. We are anticipating that in the near future, most sales in a tire dealership will be made with a tablet computer. And everything from our tablet will basically be an interface to our website.”

Te makeover was late in coming, according to Vice President Paul Levengood Jr. “We needed to get more progressive. Every fve to 10 years you should refresh your look.

“We were in this building 17 years and it needed a new look. It needed to be refurnished. We wanted to be current and not clutered.”

Levengood’s father, nicknamed Skip, co-founded the dealership as C&J Tire in 1971. Skip changed the name to CJ’s in 1991, the same year he began to expand into other markets.

Bainbridge considers Birdsboro, a small town in the westernmost suburbs of Philadelphia, and the other CJ’s stores in southeastern Pennsylvania to be within advertising range of the big city, and he takes advantage of that. CJ’s is a sponsor of both the Philadelphia Phillies Major League Baseball team and its minor league afliate, the Reading Phillies. (Birdsboro is located between the two cities, 11 miles from Reading and close to 50 miles from Philadelphia.)

Te company’s growth must be sustainable, says the younger Levengood. “We want to be the best regional tire dealer in our area. My goal is 150 stores. We have a lot of work to do.” ■

MTD October 2012

Quik-Link: 800-687-1557 ext. 21118

feature

To catch a thief Dealers put competition aside to crack check fraud scheme

By Ann Neal

D

eception, suspense, even a police chase — the employees of Wonderland Tire did not need to go to a theater for a bit of Hollywood drama one hot summer afernoon in August. It all unfolded in their own tire shop.

For those involved, the experience generated more excitement than any motion picture. Score one for the good guys.

Tey literally had caught a thief.

Within fve minutes of the call to authorities, a police carr raced into the parking lot. Te suspect’s pickup truck wass parked in front of the entrance to the Wonderland onderland shop. His companion wass seated in the truck.

Modus operandi

Te action began around lunchtime when a customer walked into the showroom of the tire dealership in Byron Center, Mich. No one was at the front desk, so one of the shop employees called for Nate Dykstra, assistant manager, to man the counter.

The customer was looking for a set of Bridgestone truck tires. Nate advised him that the particular tire he asked for was not in stock and suggested a set of Falken tires instead. Te customer agreed, perhaps a bit too quickly, Nate thought.

Nate closed the sale and the customer wrote a check for $1,800, which he placed on the counter. At that moment, the transaction changed from routine purchase to potential crime. Nate had recognized the name imprinted on the check. It was that of a man suspected of paying for merchandise at local businesses with checks drawn on a closed account.

(From left to right) Ryan Brunsting, store manager; Nathan Dykstra, asNate never dreamed the suspect would sistant store manager; and Jim DeVries, CFO for Wonderland Tire in Bryon make it to Wonderland, but here he was with Center, Mich.; all played an integral role in the capture of a scam artist. checkbook in hand. His mind was racing, yet in a performance worthy of Hollywood’s best, he kept the When the frst police car appeared, the man in the truck shock from showing on his face. Nate triumphantly thought, jumped out, raced through the Wonderland shop and out the “Now we’ve got him.” open overhead doors to a nearby gas station. Seeing a second Calmly, Nate told the man he needed to go into his ofce police car pull in to the parking lot, the suspect who wrote to fnish writing up the bill and make it tax exempt. Tat was, the check ran out the front door toward the same gas station. of course, a diversion.

Shop employees directed the police to the gas station, Nate hastily scrawled the man’s name on a yellow note pad where the suspects were caught in the rest room fushing the and placed it on the desk of Ryan Brunsting as he walked fraudulent checks down a toilet. Te checks were salvaged past. Ryan, who is manager of the Wonderland store, read the for use as evidence. name. He recalls thinking to himself, “Who is that, and why Te backstory do I recognize that name?” Suddenly, he knew the answer.

Te real-world drama at Wonderland actually began in late Ryan walked out of his ofce and past the customer to the ofce of Jim DeVries, chief fnancial ofcer for Wonderland. July. Te suspects had successfully targeted several businesses Ryan asked Jim to call the police. Meanwhile, Nate kept the in the Grand Rapids area, including tire dealerships. Employees man occupied at the front desk with small talk about his at two of those shops took the initiative to warn other tire business, truck and trailer, and other topics. stores, their competitors, to be on the lookout.

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MTD October 2012

Quik-Link: 800-687-1557 ext. 21119

Preventing check fraud Wonderland received a telephone call from a person who said his tire shop had lost a large amount of money to a customer who paid with a fraudulent check. No other details were ofered. A few days later, on July 31, Ryan received a telephone call from Belleroc Tire Service, a joint venture between Tredroc Tire Service and Belle Tire that consists of six retail locations and one Bandag retread plant.

Te caller, Mike Dykstra (no relation to Nate), general manager of the Belleroc store in Byron Center, gave the name and description of a man who had paid for medium truck tires with a fraudulent check.

“Perhaps the common thing to do would be to keep quiet about it and let the other tire companies deal with it on their own if the man tries it on them,” said Dave Langerak, a co-owner of Wonderland Tire. “These good employees did not do that.

Tey alerted us to what had happened to them.

We are grateful. Tis allowed us to identify the man when he came to us.

Without those phone calls we probably would have been taken for some tires, as well.”

Founded in 1978, Wonderland is a familyowned business with 70 employees and fve locations in the west Michigan area and Chicago. Te company specializes in tires and tire-related services for passenger vehicles, light trucks and commercial trucks. Wonderland Tire technicians are TIA (Tire Industry Association) certifed by an in-house certifed trainer for both commercial tire service (CTS) and automotive tire service (ATS). Companywide, about 50% of revenue is generated from sales of Wonderland’s AcuTread remanufactured truck tires, which are produced via a proprietary retread process.

Belleroc’s retread plant, located in Grand Rapids, Mich., has been in operation using the Bandag process since 1987. Te process is now part of Bridgestone Commercial Services, a division of Bridgestone Americas Tire Operations (BATO).

All service technicians and salesmen are TIA certifed. Belleroc’s service extends to all segments — including retail, OTR and commercial. Belleroc Tire Service includes locations in Michigan; Tredroc

Tire Service includes locations in Illinois, Wisconsin and Indiana; and Belle Tire includes locations in eastern Michigan and northern Ohio.

Afer geting the call from Belleroc, Ryan alerted managers at all Wonderland locations to the check scheme via email.

Te suspect was probably feeling very confdent as he strolled into Wonderland.

He had just purchased four large truck batteries with a fraudulent check at a nearby truck dealership.

“Nate helped this man when he came in to our store and identifed him as the check fraud suspect. Nate would probably tell you he was just doing his job. He is an intelligent and dedicated employee who no doubt received a lot of satisfaction from being the one who caught this guy. Nate, Ryan and Jim are all very good company

Te retail industry loses $12 billion a year to bad checks, with industry estimates attributing half of those losses to check fraud.

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employees who care for the well-being of Wonderland Tire and treat it as is if it were their own company,” said Dave.

Tough to spot

Checks are usually the preferred payment method for customers without credit cards. But both check and credit card fraud are major threats to the fnancial health of any business.

Te retail industry loses $12 billion a year to bad checks, with industry estimates atributing half of those losses to check fraud according to the website of SCORE, a nonproft organization dedicated to the success of small businesses.

Most businesses want to make multiple forms of payment available for the convenience of their customers. Despite precautions at checkout, a bad check may still slip by.

“Tis one would have been very difcult to prevent if we had not been alerted frst by other local tire companies,” said Dave.

“Te man had what appeared to be a valid

MTD October 2012

Quik-Link: 800-687-1557 ext. 21120

Preventing check fraud I.D. in the form of a driver’s license. Tat is typically what we would ask to see for a check of any amount.”

At Belleroc Tire, the suspect came into the shop twice in the same week. He mentioned the names of several familiar Belleroc customers, which gave him some credibility, according to Mike.

“He was so brazen. He gave us his identifcation and signed documents with his name. Te check was from a major bank and he provided a phone number along with his I.D. Tere was nothing to give

the appearance that it was not a legitimate check,” Mike said.

Afer the bank notifed Belleroc that the check was written on a closed account, Mike called the local sherif to fle a report. His next move was to call area tire dealers, a step that led to the arrest of the two suspects.

Valuable lesson

Te drama did not end with the arrest at the gas station.

Excitement was still running high when

Tips for accepting checks A variety of electronic and paper check processing solutions are available commercially, including technology that converts paper checks into an electronic transaction at the point of sale and transfers funds directly from a customer’s checking account to the retailer’s business account.

For merchants accepting traditional paper checks, verifying that the person offering the check is the account holder can help prevent fraud. Retail chains usually access account and cardholder databases for identity verifcation and payment authorization. Smaller merchants often do not have that option.

Local banks and law enforcement should be able to provide tips for specifc actions to detect check and card fraud at checkout. The U.S. Small Business Administration offers these guidelines (www.sba.gov/content/accepting-checks) for detecting fraudulent checks at the point of sale: • Checks must be from a local or in-state bank.

• Checks should not be written and accepted for more than the purchase amount.

• Checks should not be accepted that are starter checks, unnumbered checks, or non-personalized checks.

• Accepted checks should be deposited as quickly as possible. Banks may refuse to honor checks dated back six months or more.

Instruct employees to carefully examine every personal check for information that is essential for chasing the check: • Personalization – The customer’s complete name and address must appear on the check.

• Date – The check date must be current. Do not accept post – or future-dated checks.

• Bank I.D. numbers – The check must have a bank identifcation number, or routing transit number, that runs across the bottom, along with the customer’s account number and check number. This information is used by a bank to identify the transaction and resolve payment issues.

• Payee – The “Pay to the Order of” section must indicate your business’s name.

• Dollar amounts – Both the written and numeric amounts must match.

• Customer signature – The check should be signed in your presence and verifed with photo identifcation.

• Verifying identifcation can help your business safeguard against fraud. However, some state laws regulate which forms of identifcation businesses can require to see. Depending on your business location, it may be illegal to require customers to show a credit card as a condition for accepting their check. Commonly accepted forms of identifcation often include a state-issued driver’s license, I.D. card, or military I.D. Source: www.sba.gov/content/accepting-checks

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MTD October 2012

Quik-Link: 800-687-1557 ext. 21122

Preventing check fraud municate with one another when something like this happens. Tis man hit many local businesses with this same check falsifcation scheme, and several were local tire companies.

“Even though we are competitors in the marketplace, there is room for cooperation when it comes to something like this,” said Dave.

Earl Kamps, also a co-owner of Wonderland Tire, added: “Our employees did a great job. Tey kept their cool and nabbed this guy. It would be ideal if tire dealers would inform each other when scams arise so we can shut down these criminals.”

Mike from Belleroc echoes the sentiment: “We fght each other every day out there, but we have to stick together Without the help of their competitors, Wonderland Tire Center would have beon some things.” come another victim of check fraud. The would-be thief is awaiting trial.

Sticking together to prevent fnancial crime works. Need proof? Te suspect the police asked tire technician George Moore to make sure was charged as a habitual ofender as well as with false pretenses. the suspect’s truck could not be driven of. Rather than remove He is awaiting trial. ■ the key from the ignition, he popped the hood and pulled out the spark plugs. As the truck was towed away, everyone, Ann Neal is a feelance writer with more than two decades of including the policeman, shared some laughs as well as a lesson. experience managing employee, fnancial and marketing com“I think there is a valuable lesson to be learned here: Com- munications and Web content in the commercial trucking industry.

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Quik-Link: 800-687-1557 ext. 21123

MTD October 2012

Quik-Link: 800-687-1557 ext. 21124

Commercial Tire Dealer™

Pent-up demand spurs commercial sales Business is post-recession, but not post-recovery — yet

By Bob Bissler

H

istory repeats itself in 2012. For the second year in a row, Southern Tire Mart, based in Columbia, Miss., tops the Modern Tire Dealer 2012 Top 25 U.S. Commercial Tire Dealers list.

Coming in again at number-two is Best-One Tire & Service, Monroe, Ind. Best-One shares the number-two spot with Pomp’s Tire Service, Green Bay, Wis., up two places from the number-four spot it held on the lists from 2009, 2010 and 2011.

Greensboro, N.C.-based Snider Tire Inc. moved up to number four. Snider Tire’s president John Snider is MTD’s 2010 Dealer of the Year.

Te commercial tire industry is making a post-recession comeback. Despite a slow recovery, commercial tire dealers have held their own.

In 2009 we reported that many commercial tire dealers had to put expansion plans on hold. Tat hasn’t been the case in 2012.

And there’s reason to believe that it will continue into 2013.

According to the Rubber Manufacturers Association (RMA), original equipment (OE) tire shipments for both the commercial truck and light vehicle markets will be up nearly 16% for 2012 as continued pent-up demand for both commercial trucks and light vehicles will add to domestic new vehicle sales and production.

Te RMA also says that pent-up demand for commercial trucks and trailers concurrent with a forecasted 4% increase in the Industrial Production Index in 2012 will enable this sector to grow by 12% in 2012, or nearly 600,000 units, or 5.5 million units total.

With optimism in the commercial tire market, dealers large and small are managing to stay in business and grow. And while the big players have stayed at the top of the MTD Top 25 U.S. Commercial Tire Dealers list, there has been plenty of action with other dealers. We asked: What has happened at your business in the last year?

ALSO IN CTD 2012 Top 25 U.S. Commercial Tire Dealers . . . 46 Embracing effective methods for educating employees: Tire service industry must say goodbye to ‘old Joe training’ . . . 57 Commercial matchup: Bridgestone pairs up Ecopia truck tires with Bandag retreads . . . 58

• Raben Tire Co. Inc. (number 13): “Retread casing availability is a real problem.”

• Pete’s Tire Barns Inc. (number 22): “We purchased Quirk Tire and that was our big acquisition of the year. Tat was so we could focus more on OTR – that’s our plan. Te combination of Pete’s Tire Barns and Quirk Tire will allow

Bauer Built Inc., number 9 on this year’s Top 25 Commercial Tire Dealers list, expanded operations in the last year with the acquisition of Walker Tire Commercial Division in Omaha, Neb., and Hanson Tire in LeRoy and Preston, Minn.

Pete’s to expand sales and service of giant tires, farm tires, industrial and truck tire markets within New England.”

• Nebraskaland/Kansasland/Coloradoland Tire Group (number 25): “We have 19 combo locations as we have added commercial service to our North Broadway location in Denver. We have added three retail locations in Topeka by purchasing Gregg Tire. We are in negotiations for a new location in Denver now.”

• Bauer Built Inc. (number 10): “In the last year we have acquired Walker Tire Commercial Division in Omaha, Neb. and Hanson Tire in LeRoy and Preston, Minn.”

• Pomp’s Tire Service (tied for number 2): “Overall 2011 was an excellent year. Tis year we are selling more in dollars but less in new units while having a nice increase in our retread sales.”

• Service Tire Truck Centers (number 6): “Our business has been steady in 2012, but not gangbusters. Sales are up a litle, and GP is beter than 2011. We look to fnish up over last year, and are optimistic for 2013.”

• Valley Tire Co. Inc. (number 21): “Valley Tire has expanded into the heavy-duty truck repair business using the name TruxTex, now with fve locations and seven mobile units.” ■

Methodology To make the MTD Top 25 U.S. Commercial Tire Dealers list, a commercial tire dealer has to: 1) sell truck tires, 2) have at least one retreading plant, and 3) offer 24/7 road service.

Point totals are tabulated based on number of outlets. Each commercial-only outlet is two points and each retread plant is one point. The number of combination commercial/retail stores is multiplied by the estimated percentage of commercial sales, and then multiplied by two. The highest 25 point totals make up the list, and then the dealers are ranked based on estimated commercial sales.

Commercially Viable . . . 61

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MTD October 2012

Quik-Link: 800-687-1557 ext. 21125

2012 Top 25 U.S. Commercial Tire Dealers

46

Comm.

Only/ Combo

2011 Comm.

Sales

Rank-Company Headquarters-Website

Chief Officer

1. Southern Tire Mart, Columbia, Miss. www.stmtires.com

Thomas and James Duff, owners

60/2

Bridgestone, Firestone, Continental, 17 General, Yokohama

428

$715 million

140

2. Best-One Tire & Service, Monroe, Ind. www.bestonetire.com

Paul Zurcher, chairman

65/117

Bridgestone, Firestone, Continental, 17 General, Michelin, Goodyear

Multiple

$300 million

227

2. Pomp’s Tire Service, Green Bay, Wis. www.pompstire.com

Jim Wochinske, president

29/43

Bridgestone, Continental, Dayton, Firestone, General, Goodyear, GT Radial, Michelin, Yokohama

11

290

$300 million (est.)

134

4. Snider Tire Inc., Greensboro, N.C. www.snidertire.com

John Snider, president

44/0

Michelin, BFGoodrich, Yokohama, Goodyear, Continental

6

200

$265 million

94

5. Les Schwab Tire Centers, Bend, Ore. www.lesschwab.com

Dick Borgman, 0/369 CEO

Toyo, Ohtsu, Double Coin, Gladiator, Michelin, Bridgestone, Firestone

3

1,500

$263 million

151

6. Service Tire Truck Centers, Bethlehem, Pa. www.sttc.com

Ronald Bennett, CEO

40/0

Goodyear, Kelly, Michelin, BFGoodrich, Yokohama, Roadmaster

4

232

$213 million

84

7. Purcell Tire & Rubber Co., Potosi, Mo. www.purcelltire.com

Robert Purcell, chairman

20/34

Dunlop, Goodyear, Michelin, Kelly, Yokohama, Hankook

5

216

$206 million

87

8. McCarthy Tire Service Inc., Wilkes-Barre, Pa. www.mccarthytire.com

John McCarthy, CEO

22/16

Bridgestone, Firestone, Continental, 6 General, Yokohama, Kelly, Dunlop, Double Coin

410

$192 million

80

9. Bauer Built Inc., Durand, Wis. www.bauerbuilt.com

Jerry Bauer, president

0/31

Michelin, BFGoodrich, Bridgestone, Firestone, Kumho, Hercules, Continental, General, Cooper

7

82

$160 million

50

10. Boulevard Tire Center, Deland, Fla. www.boulevardtire.com

Earl Colvard, president

16/3

Michelin, Bridgestone, Goodyear, Yokohama, Dunlop, Continental, Firestone, BFGoodrich, General, Roadmaster

5

115

$119 million

40

11. Parkhouse Tire Inc., Bell Gardens, Calif. www.parkhousetire.com

Jim Parkhouse, CEO

14/0

Bridgestone, Firestone, Continental, 2 General, Michelin, Yokohama, Double Coin, Roadmaster, BFGoodrich

125

$115 million

30

12. Cross-Midwest Tire, Kansas City, Kan. www.crossmidwest.com

Greg Trum, president

13/0

Bridgestone, Firestone, Continental, General, Yokohama, Michelin, Cooper

3

169

$110 million

40

13. Raben Tire Co. Inc., Evansville, Ind. www.rabentire.com

Tom Raben, president

7/27

Goodyear, BFGoodrich, Kelly, Dunlop, Michelin, Continental, General

3

116

$96.5 million

44

14. Bob Sumerel Tire Co., Erlanger, Ky. www.bobsumereltire.com

Bob Sumerel, CEO

13/4

Bridgestone, Firestone, Goodyear, Yokohama, Continental, General, Roadmaster, General

5

70

$89 million

38

15. Belle Tire Inc., Allen Park, Mich. www.belletire.com

Don Barnes Jr., president/ COO

12/95

Bridgestone, Michelin, Goodyear, Dunlop, Yokohama, Roadmaster, General, Continental, Firestone

3

115

$85 million

126

16. Graham Tire Co., Spencer, Iowa Sioux Falls, S.D. www.grahamtire.net and www.grahamtire.com

Bob and Tom Graham, owners

5/25

Goodyear, Dunlop, Kelly, Michelin, Aeolus, Hankook

2

28

$82 million

37

17. T and W Tire, Oklahoma City, Okla. www.tandwtire.com

Charles Wilson, CEO

3/11

Goodyear, Kelly, Dunlop, Michelin, Continental, Yokohama

2

60

$74 million

26

18. Commercial Tire Inc., Meridian, Idaho www.commercialtire.com

J.R. 8/29 Schwenkfelder, CEO

Bridgestone, Firestone, Yokohama, Roadmaster, General, Continental

3

141

$73 million

37

Truck Tire Brands

Retread Shops

Number of Service Trucks

Points

MTD October 2012

Quik-Link: 800-687-1557 ext. 21126

2012 Top 25 U.S. Commercial Tire Dealers Rank-Company Headquarters-Website

48

Chief Officer

Comm.

Only/ Combo

Truck Tire Brands

Retread Shops

Number of Service Trucks

2011 Comm.

Sales

Points

19. Tredroc Tire Services, Antioch, Ill. www.antiochtire.com

John Lavelle, CEO

0/20

Bridgestone, Firestone, Continental, 6 General, Michelin, Hankook, Toyo, Yokohama, Wanli, Sunny

200

$66 million

44

20. Sullivan Tire Co., Norwell, Mass. www.sullivantire.com

Robert Sullivan, president

15/0

Bridgestone, Firestone, Goodyear, Dunlop, Kelly, Sailun

3

83

$65 million

33

21. Valley Tire Co. Inc., Charleroi, Pa. www.valleytire.com

Jim Stankiewicz, president

11/10

Michelin, Continental, General, Yokohama, BFGoodrich, Sumitomo

1

55

$63 million

39

22. Pete’s Tire Barns Inc., Orange, Mass. www.petestire.com

Pete Gerry, president

0/18

Bridgestone, Firestone, Michelin, Continental, Double Coin, General, Double Star

2

108

$55 million

33

23. Tire Guys Inc./ Tire-Rama Inc., Billings, Mont. www.tirerama.com

David Wehr, 0/45 CEO/president

Yokohama, Bridgestone, Roadmaster, Firestone

1

Multiple

$50 million

46

23. Black’s Tire Service/ Carolina Retread, Whiteville, N.C. www.blackstire.com

Ricky Benton, president

0/34

Goodyear, Dunlop, Kelly, Continental, Roadmaster, Ohtsu, Double Coin, Westlake

1

95

$50 million

35

25. Nebraskaland/ Kansasland/Coloradoland Tire Group, Lexington, Neb. www.thetirestore.com

Gary Wright, president

4/19

Goodyear, Dunlop, Kelly, Mastercraft, Michelin, Roadmaster, Aeolus

4

62

$45 million

31

MTD October 2012

Quik-Link: 800-687-1557 ext. 21127

Quik-Link: 800-687-1557 ext. 21128

Tire service training

Embracing efective methods for educating employees Tire service industry must say goodbye to ‘old Joe training’

By Kevin Rohlwing

L

the majority of truck tires that are serviced are outsourced to commercial tire dealers.

Since I saw the light back in 1996, I’m proud to say that training in the commercial tire service industry has improved considerably.

But my experience as an industry training developer and provider tells me that the transportation sector as a whole continues to embrace the old Joe method and I believe it’s costing people their lives.

While I don’t have the specifc details regarding the recent accidents in trucking, here is what OSHA said about each fatality:

ooking back on my 30 years in the tire business as a trainee and trainer, there are an infnite number of things that I would have done diferently. As a young technician working for my dad, I took far too many chances and exercised far too litle caution when handling infated tires. I got lucky more than once. And when I became his unofcial trainer, I did litle more than stop a few techs from hurting themselves. Barely.

From a training perspective, the frst 14 years of my career were an accurate refection of the state of the truck tire service industry up to the early 1990s.

For most commercial tire dealers back then, technician • Worker rotating truck tires was killed when one of the rings training was conducted on the job, a training method known holding the tire in place struck him in the head. as “on-the-job training,” or OJT. I’ve also heard it referred to • Worker struck by pieces of a large tire that exploded while as “old Joe training” because it usually involved an older and adding air to it. more experienced tech taking the new guy under his wing for • Worker was struck and killed by parts of rim that exploded a few weeks to watch and learn how to do it. Once old Joe said while tire was being changed. you were OK, you were trained and it was time to go to work. • Worker was killed when the tractor tire he was infating If you do an Internet search of on-the-job training today, exploded. you’ll fnd that it has become a proven method for educating • One worker was killed, another injured afer the tire they employees. Wiki answers defnes it as follows; “Te best job were removing blew of the axle. training is ‘on-the-job training’ or OJT. OJT is best because this allows you to experience actually doing the job to see if you Te problem with OJT as the only source of training for like it.” Well pass the guitar and the fresh organic wheat grass. truck tire and wheel service back in the day was that it created While most of the world can enjoy that break-in period where a system where generations of bad habits got passed down you get to “see if you like it,” the from one Joe to the next. lives of truck tire technicians It worked like this. Te frst are more or less on the line old Joe showed the new guy all In the last two years, fve out of 10 of his bad habits. Ten the new the frst time they handle or service an infated tire. fatalities caused by an infated tire guy became the next old Joe Improperly serviced or inand passed down the original occurred at trucking companies fated assemblies have resulted old Joe’s bad habits in addition while the other half can be in far too many serious injuries to a few more tricks he learned and deaths over the years for himself over the years. And contributed to a tire dealer. someone to “see if they like it.” if one of those new guys had If a new hire doesn’t underprior experience, he tacked on stand the hazards going in, they another generation or two of may never get a chance to decide if it is the career for them. bad habits that he learned from someone else. Each old Joe perpetuated generations of bad habits and started an endless Old Joe vs. OSHA patern that was inconsistent and dangerous.

A recent look at the Occupational Safety and Health Administration (OSHA) fatalities proves my point. In the last How people learn two years, fve out of 10 fatalities caused by an infated tire As it stands today, most technicians in the commercial tire occurred at trucking companies while the other half can be service industry have been formally trained to defate multicontributed to a tire dealer. piece tire and rim assemblies before removing them from a Statistically, that number should be a lot lower because vehicle because damaged or mismatched components can

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MTD October 2012

Quik-Link: 800-687-1557 ext. 21129

Why training is necessary

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Once you understand how people learn and retain information, it’s equally important to think about why training is necessary in the frst place. Safety is defnitely a factor as

54

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result in a separation. Tey are also 100 taught to use OSHA-compliant tire infation devices and stay out of the trajectory during the infation process.

I know this because I’ve been writing and developing training programs for the last 16 years. And while it’s 80 unfair to speculate whether any or all of these accidents in trucking were preventable, at frst glance it appears that proper training could have saved at least one family from 60 the pain of losing a loved one.

People make careers out of studying how people learn so training developers like myself can formulate the best plan for teaching them a particular skill. Each model is a litle 40 diferent, so I’ve combined a few of them to put together a chart (Chart A) that I think does a good job of demonstrating how people learn versus how much they remember.

If you hand a textbook to the 20 average person, they can only be expected to remember about 10% of the basic information. If they read it and then someone explains it, the retention rate jumps to 20%.

0 Add some pictures and you’re up to 30%, and if there’s video, the average person should remember about 50% of the main points. Trow in a live demonstration and some hands-on instruction with the base knowledge in place, and the retention rate jumps to 90%. Finally, if the student then simulates the skill, they should be able to remember 100% of the most important information.

If this model is applied to the typical OJT method in the tire business, then you start with the 10% for hearing the words because old Joe has to explain it to some degree. Of course, if the words are wrong, then this model will just ensure that everyone will do the same thing the wrong way, but we’ll get to that later. Ten we’ll add another 20% for watching the demonstration. However, the hands-on teaching doesn’t really count because old Joe may not be able to explain the “why” behind each step in the process (and they could still be wrong). But I’ll toss in another 10% for simulation because old Joe still has to watch the employee do it before signing of.

If you do the math with this model, traditional OJT results in a retention rate of just 40% and some or most of it could be wrong (Chart B).

30 %

Tire service training

Chart A

evidenced by the number of people who are fatally injured each year. Liability is always a concern because a poorly or improperly trained employee makes it easy for the jury to assign blame afer an accident. And in the case of truck tires and other large tires, it’s an OSHA requirement so it’s basically the law. But my golden rule of training has always been, “To change behavior in a positive manner.” Tat’s the essence of educating employees.

While I’ve mainly applied this theory to tire and wheel service, behavior can always be changed in a positive manner regardless of the job. Whether you are trying to get employees to do something beter or safer, the ultimate goal is usually to get them to do it diferently so it improves or do it the same way if it’s working.

When the model in Chart A is applied to the Tire Industry Association (TIA) Commercial Tire Service (CTS) training and certifcation, it’s easy to see why this program has achieved the goal of making positive changes in behavior.

TIA training and certifcation is based on a process manual with an accompanying video that includes specifc step-by-step procedures for servicing tires and wheels. While 20 old Joes

MTD October 2012

could teach 20 diferent ways, the frst half of this structured training program will always be the same for every trainee. It is also compliant with federal regulations and consistent with manufacturer guidelines as well as industry standards.

Te videos are broken up into short modules so the students can grasp one concept at a time. Each one builds up to the next and by the time they are fnished, they have a much clearer picture of the basic safety procedures for servicing tires.

Companies can have 30 or 300 locations

are not allowed to even touch a tire until they complete a TIA training program.

Old Joe training still being used

Behavior has defnitely been changed in a positive manner when it comes to the training of professional commercial tire service technicians and the procedures they follow. However, I believe that the trucking industry is still using old Joe and the OSHA data shows it’s not working very well.

Watching a demonstration contributes

Hands-on-teaching - 10% Watch demo - 20% Hear instruction - 10% Non-retention - 60%

Chart B

and still ensure that everyone is taught the same way.

And when everyone starts following the same rules, behavior is ultimately changed in a positive manner.

For example, torque wrenches in the commercial tire business were virtually non-existent in the 20th century and restraining devices, or safety cages, were rarely used.

However, in the last decade both have become commonplace among the major truck tire and wheel service providers.

Most wheels in the commercial tire service industry are now installed with a torque wrench using the recommended guidelines for ensuring sufcient clamping force.

In less than 10 years, the industry has come a long way from the “good-andtight” days of impact wrenches. And the increased use of restraining devices both in the shop and on the road during the infation process has undoubtedly prevented countless technicians from being injured.

What’s even more impressive about commercial tire dealers is that most employees

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another 20% toward total retention, which is why it’s important to note that all TIA certifcation classes are taught by certifed instructors who have completed in-depth hands-on training from a TIA staf instructor. Tat means the instruction they provide and the skills they demonstrate are more likely to be correct. Many of these certifed instructors also are responsible for new employee training, so the consistency in the message and the accompanying demonstration are second-to-none year afer year.

Teaching the skill adds 20% so it is equally important as the demonstration.

A big part of TIA training and certifcation is the hands-on portion. Tis is an opportunity for the student to atempt to duplicate the skills that were demonstrated.

Again, the TIA instructor is able to provide positive feedback on positioning, leverage and trajectory during each step of the process. Old Joe says don’t sit on the tire when you infate it.

Finally, the student must simulate the skill on their own before achieving com-

Quik-Link: 800-687-1557 ext. 21130

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Tire service training been changed, but the trucking business appears to follow many of the same old unsafe procedures and the results are tragic.

It’s starting to change in passenger and light truck tires because more and more retailers are recognizing that OJT and introductory videos are becoming less efective, especially with TPMS. We’ve heard it during every Certifed Automotive Tire Service (ATS) Instructor class for the past 10 years.

Most of the students had no idea this level of training was available and they end up changing behavior in a positive manner when they return to their respective shops. Based on what we hear in our training classes, there is still a lot of misinformation out there just like there was in the commercial tire service industry TIA’s national tour of ATS Instructor classes has gathered feedback that indicates years ago. that tire service technicians are still following unsafe/incorrect practices.

And while I’ve intentionally avoided discussing liability, retailplete retention of the basic concepts. In order to receive a ers must understand that the best protection in the event certifcation or certifcate from TIA, a skills demonstration of an accident is a properly trained technician. Te major form must be signed by a supervisor or certifed instructor. commercial tire dealers recognized that years ago and now Tis provides documented proof that the student actually it’s rare when an employee is not qualifed to service truck performed the specifc skills with some degree of profciency. tires and wheels. It’s the cheapest insurance out there, yet I It also gives the instructor a fnal chance to provide individual believe there are still thousands of poorly trained technicians feedback, which helps students improve. in the passenger and light truck tire industry. TIA has been conducting a national tour of ATS Instructor classes and the Positively changing behavior feedback indicates there are still practices being followed that Te purpose of this article was not to promote TIA training are incorrect and/or unsafe. and certifcation. I’m just using it as an example of how one History has proven that behavior can be changed in a positive educational approach fts into the model described by Chart manner, but the retail industry as a whole must say goodbye A and ultimately changes behavior in a positive manner. If to old Joe and embrace more efective methods for educating all of those same learning components are present in other employees if they want to see improvement. ■ training programs, then they can be just as efective as if they contain the same level of information and consistency with Kevin Rohlwing is senior vice president of training for the Tire established industry practices and regulations.

Industry Association. For more information, he can be reached Behavior in the commercial truck tire service industry has at krohlwing@tireindustry.org.

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Quik-Link: 800-687-1557 ext. 21131

MTD October 2012

Quik-Link: 800-687-1557 ext. 21132

Truck tires & retreads

Commercial matchup Bridgestone pairs up Ecopia truck tires with Bandag retreads

By Bob Bissler

I

n a matchup intended to reduce the costs of truck tire ownership, Bridgestone Commercial Solutions (BCS) has paired up its Bridgestone Ecopia truck tire line with complementary Bandag FuelTech treads.

Te tires and retreads were covered in detail at a recent media tour at Bridgestone Americas Tire Operations’ (BATO) Warren County, Tenn., plant. Te fve new tires in the Bridgestone Ecopia line are for the steer, drive and trailer positions. Te four new tread designs, in the Bandag FuelTech line, are for drive and trailer tires.

“Ecopia is trying to solve the great tire technology challenge of optimizing wear and rolling resistance without sacrifcing wet traction,” says Scot Damon, vice president of marketing. “With $4 diesel, fuel efciency becomes a huge issue. From a feet perspective, there are several variables that afect the rolling resistance of a truck. Tires are one of those elements, and trying to isolate the tire efect from that so it can have real meaning to a customer, it’s critical.”

Damon says BCS added smarter designs and new technol-

ogy in Ecopia products. Te company also implemented technologies that extend the life of an Ecopia casing for Bandag FuelTech products.

“Tese changes mean greater fuel savings for our customers that can contribute to a lower cost of ownership over the life of the tires.”

Damon says the technologies BCS has developed ofer signifcant benefts for both Ecopia and FuelTech products.

Within the tire tread, Bridgestone’s patented NanoPro-Tech polymer technology, available in all new Ecopia tires, helps control particle movement, which reduces energy loss. Tat translates into improved fuel economy through lower rolling resistance.

Bridgestone says its proprietary Fuel Saver Sidewall compound reduces heat generation, which lowers rolling resistance and improves fuel economy.

Te new IntelliShape sidewall, found in the M710 Ecopia drive radial and R197 Ecopia trailer tire, contain less bead fller volume, which lowers tire weight, improving fuel economy and conserving natural resources.

A new Defense Side Groove feature has been incorporated

Bridgestone Commercial Solutions (BCS) has launched nine new commercial products that match Ecopia truck tires with complementary Bandag FuelTech treads. BCS developed the “high rigidity tread pattern” and added this element to all Ecopia truck tires and FuelTech tread designs to extend tread wear.

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MTD October 2012

into the R283 Ecopia steer tire, which creates uniform pressure along the footprint at the shoulder and helps extend tread life.

Te patented Waved Belt design in Greatec Ecopia tires improves durability, contributing to a more retreadable casing, especially when paired with a Bandag FuelTech product. Te use of patented Turn-In-Ply technology enhances durability and retreadability over the life of the casing.

Te B710 FuelTech drive and B197 FuelTech trailer retreads complement the new drive and trailer Ecopia tires.

For users of wide-base truck tires, Bandag B835 FuelTech and B135 FuelTech retreads are based on the new Bridgestone Greatec M835 Ecopia drive and Greatec R135 Ecopia Teammate Heath Young at BATO’s Warren County, Tenn., plant operates a sidewall extrutrailer radials. sion machine. BATO developed a Fuel Saver Sidewall compound for its Ecopia truck tires BCS isn’t leaving customers that reduces heat generation, which lowers rolling resistance and improves fuel economy.

Bridgestone Commercial Solutions preaches ‘Retread Instead’ Bridgestone Commercial Solutions (BCS) has re-launched its “Retread Instead” program as an online campaign aimed at educating truckers and feets on the value of extending tire life.

Retreadinstead.com hosts short, informational videos about the benefts of retreading as well as easyto-understand clips on the retreading process. A feature of the site is the space dedicated to debunking common myths around retreads, especially

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those surrounding safety and mileage.

“It’s commonly known in the industry that many believe retreads are an inferior product, when, in fact, they can not only save operators and feets money, but are often just as durable and safe as a new tire,” says Scott Damon, vice president of marketing.

“We encourage operators, feets and dealers to take a look at the site and see how retreads might be a good addition to their tire solution.”

Quik-Link: 800-687-1557 ext. 21133

The site also includes an invitation to take the Bandag Challenge. In a comparison test versus new tires, application-specifc Bandag retreads will be mounted on one of two similar vehicles in a feet that run similar routes. The performance of the two vehicles is tracked, and at the end of the comparison, fleets can see for themselves the cost difference.

Bridgestone will refund any savings not in the feets’ favor.

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Truck tires & retreads in the dark as to how they can calculate fuel savings with these tires and retreads. With the Ecopia lineup, BCS also launched www.ecopiatrucktires.com where customers can get in-depth, detailed testimonials along with videos on the products. In addition, there is a new proprietary system called the Online Life Cycle Cost Calculator.

“You can actually take your purchase price of the products and the current cost of diesel and can get your total life cycle cost savings of this product through its retread life and through its reduced CO2 emissions and compare it against any product in the market today,” says Damon. “It’s a very unique and simplistic tool but it does show the value of the Ecopia products.” ■

Who’s the boss?

Workers at BATO’s Warren County, Tenn., plant prepare truck tire mold segments for production. Bridgestone says its special Ecopia tread design was engineered to optimize wear and rolling resistance, without sacrifcing wet traction, while extending the life of the casing.

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Quik-Link: 800-687-1557 ext. 21134

The folks at Bridgestone Commercial Solutions (BCS) have a unique concept of what a “boss” is. BCS uses feedback from this boss to better design commercial truck tires.

“What we try to do is take the boss, our customers, and say, ‘how do I create inspired ideas from the boss in the tire development process?’” says Scott Damon, vice president of marketing at BCS. “There are several things we do as a marketing organization, and try to capture what our customers tell us through predictive models such as observational interviews.”

Damon says that customer feedback reveals a concern of regulatory mandates such as those coming from the California Air Resources Board (CARB). Many regulations affect truck tires, and BCS customers need OTR tires that are in compliance with rules and that save fuel, such as with the Environmental Protection Agency’s (EPA) SmartWay program.

“We try to capture what our customers say, what our sales force says and what our distributors say,” says Damon. “We mine the insights from that feedback and say, ‘How can we create a solution that will have value in the marketplace?’ It might be a product solution. It could be a service solution.”

Damon says this process has worked very effectively for BCS. He says that as one of the top three tire companies, two out of the top-four selling brands in North America for truck tires are manufactured by Bridgestone.

“And, we’re roughly half the retread market in North America,” he says. “One in three of every tire wheel position in the market is a Bridgestone-generated product.”

With all those Bridgestone products out there, Damon says BCS wants to help customers manage these assets.

“With large feets like Ryder and UPS, they try to manage their assets, including their worn tire casings, across multiple dealers and multiple states,” Damon explains.

“This has allowed us to take a system that we have in place and actually track those assets online via a Web portal so their maintenance facility managers can see where their inventory is sitting and best leverage that across a network of independent dealers.”

MTD October 2012

Commercially viable Firestone farm tire has 10% soybean oil Bridgestone Americas Tire Operations has unveiled a new concept tire containing more than 10% soybean oil. The 900-pound farm tire is marketed under the Firestone brand of agricultural tires and contains approximately 90 pounds of soy oil. The typical application for the 800/70R38 Radial Deep Tread 23 tire is on large four-wheel-drive tractors where eight tires are used. Through soybean processing, one bushel of soybeans yields approximately 11 pounds of soy oil.

BRIDGESTONE AMERICAS TIRE OPERATIONS Quik-Link: (800) 687-1557, ext. 21160 www.mtdquiklink.com/21160

OTR TPMS has lowfrequency activation Doran Manufacturing has enhanced its Doran 360CE tire pressure monitoring system (TPMS) for OTR tires with low-frequency activation. This new valve-stem-mounted tire pressure sensor allows feets to receive digital tire pressure and temperature data using Doran’s handheld SmartLink tool. With this new feature, the SmartLink tool can be used to transmit a low-frequency signal that will activate the tire pressure sensor and transmit the current data back to the SmartLink tool for viewing without having to climb into the cab of the vehicle to view the pressures on the monitor.

DORAN MANUFACTURING Quik-Link: (800) 687-1557, ext. 21161 www.mtdquiklink.com/21161

Fras-le launches commercial brake program Fras-le North America Inc. has launched its air disc brake pad program for the North American aftermarket. Fras-le’s new air disc brake pad program, sold under the Extreme Service brand, includes 11 part numbers covering more than 59 applications on 12 brake systems. Fras-le air disc brake pads, made of OE quality friction material, offer reliable, quiet, durable and longer life performance, notes Fras-le.

With this portfolio expansion, the company now offers a complete line of hydraulic and air disc brake pads for Class 1c-8 vehicles.

FRAS-LE NORTH AMERICA INC. Quik-Link: (800) 687-1557, ext. 21162 www.mtdquiklink.com/21162

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Mitas premium American lines Mitas Tires North America Inc. has introduced its premium product line sold in North America. The company says the line accommodates the demands from the farming community with locally made products manufactured at its Charles City, Iowa, radial farm tire factory. All Mitas-made premium tires delivered to U.S. farmers now bear the Mitas brand name. These tires are based on Continental brand agricultural tires, which Mitas has made under license since 2004.

MITAS TIRES NORTH AMERICA INC. Quik-Link: (800) 687-1557, ext. 21163 www.mtdquiklink.com/21163

Trelleborg launches tougher tires Trelleborg Wheel Systems Americas Inc. has launched two new tires within the TM1000 High Power range, the IF 710/75R42 176D and IF 650/65R34 161D. Trelleborg says the Improved Flexion (IF) tires are engineered to carry more load at the same air pressure, or the same load at a lower air pressure, to provide higher farming productivity and improved environmental care. Designed using Trelleborg’s TM Blue technology, the new TM1000 High Power tires offer the highest respect for the environment as well as superior productivity and lower fuel consumption, the company notes.

TRELLEBORG WHEEL SYSTEMS AMERICAS INC. Quik-Link: (800) 687-1557, ext. 21164 www.mtdquiklink.com/21164

Hercules trailer tire awaits SmartWay status Minoo Mehta, director of commercial tire marketing for Hercules Tire & Rubber Co., says the Hercules H-903 trailer tire is waiting for SmartWay verification from the United States Environmental Protection Agency. The H-802 steer tire and H-702 drive tire (size 11R24.5 only) already have met SmartWay Transport Partnership criteria.

Hercules Tire & Rubber recently celebrated its 60th anniversary (see page 8).

Only the H-903 trailer tire (left, pictured with Mehta and the H-802 steer tire) stands between Hercules and EPA SmartWay verifcation at every axle position.

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Quik-Link: 800-687-1557 ext. 21135

Counter intelligence

Selling is a contact sport Timeless tips on winning over the customer

A

t a very young age, I could tell the difernobody takes ‘em seriously, not the customers, ence between a ’55, ’56 and ’57 Chevy. not other salesmen, not management, and usuLater, I could tell the diference between ally they don’t take themselves very seriously.” a ’61, ’62 and ’63 Chevy Impala, which was conWhen I was talking to him, he was selling me. siderably more difcult.

He was always selling, “Does your neighbor need I’ve loved cars since I was very young. So when a car? Any of your teachers need a car? Here, I needed a job while atending high school, I aptake a few of my business cards, and I’ll share plied at Paramount Chevrolet in Downey, Calif. my commission with you.” He was enthusiastic.

At the time, they were the greatest volume Chevy By Wayne Williams I wanted somehow to be a part of his success. dealership in the area and employed a large number Lot lizards were always hanging out, smoking of salesmen, and I made friends with most of them. I ofen cigaretes, firting with the female receptionists/phone received tips for helping them resolve minor customer operators (most salespeople were men then), or hanging complaints and handle favors, like free car washes. around the lunch truck. Tey did not take sales seriously.

One of the veteran salesmen at the time was a big tipper, Selling is serious business; when you’re at work, work. beter than the rest, and he sold more cars than the rest.

Te most valuable tips were not in cash; he also gave me Take calls and make calls tips about selling.

The showroom of this dealership was small; there was only room for two cars, four small ofces and six What is a lot lizard? cubicles. Mr. Professional had the cubicle closest to the I’ll never forget the frst time I heard him use the term showroom entrance where customers walked in. He was “lot lizard,” a term used in the car-dealer business for always prepared. Another thing that really stuck out, if customers who hang around the car lot kicking tires, but he wasn’t talking to a customer, he was on the phone. He never buying. He, however, used the term to describe lazy felded more incoming calls than anybody because he and unprofessional salesmen. was always at his desk, ready to take calls and make calls.

He was never worried about losing his job when it came He spent more time on the phone than the operator. He to layofs; he was a professional and he knew it. He told made outgoing calls to his customers, especially his feet me management would cut some of the lot lizards long customers. He was on the phone when he wasn’t face-tobefore they would lay him of. face with a customer. He stayed in touch.

His business card was diferent than everyone else’s; He was constantly asking for referrals. I felt guilty that I his card had a gold seal on it that signifed he was a sales had only brought him one customer. Word-of-mouth was leader. He was proud of his business card. and is the best form of advertising, and good salesmen who He shared a few tips with me that I will now share with you: do the litle extras deserve to ask for referrals.

My sales friend was a true professional, not because he • Lot lizards are a dime a dozen. could sell a lot of cars, but because he could do it month • Good salesmen are always selling. afer month, year afer year.

• Business cards are for handing out.

I was in sales for years. Sales is a contact sport; it’s work.

• When you’re at work, work.

Sales are personal; each sale is custom, and it’s serious business.

• Stay in touch with your customers.

So be a professional — set goals, make a plan. Work! ■ • Tink referral, referral, referral.

Wayne Williams is president of ExSell Marketing Inc., a He would say that lot lizards were never around long “counter intelligence” frm based in La Habra, Calif. He can enough to establish a clientele, “Tey come, they go, and be reached at exsellmkting@gmail.com.

10 points for professional salespeople 1. A sales professional has goals.

2. A sales professional has a plan and works the plan.

3. A sales professional self-educates.

4. A sales professional works to maintain a positive attitude.

5. A sales professional always stays in

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touch, engages and communicates.

6. A sales professional maintains a high level of consistency.

7. A sales professional meets challenges and complaints head-on.

8. A sales professional is an effective communicator.

9. A sales professional has knowledge of the products and competitors.

10. A sales professional understands how to handle objections.

A true professional has mastered these basic skills and has a plan to grow and strengthen areas of weakness.

MTD October 2012

Quik-Link: 800-687-1557 ext. 21136

Business insight

What motivates your employees?

SalesMinded dealers ensure targets, rewards are on target

By Doug Trenary

S

ometimes, a bell rings in your mind. It did in mine the other day. I was siting with the president of a successful company in his ofce just prior to our leadership team training session. We were talking about sales, profts and people. I asked about some specifc sales associates, and what he responded with made me freeze and really think for a minute.

He said: “...and Jef, he is now in bonus money and really motivated.” In bonus money. Sometimes in my travels I hear certain words and phrases from owners/leaders that really make me think about this question: “What really motivates an employee from their perspective?” Is it money? Recognition? Advancement? Environment? It’s all those.

In this article, I want to really focus the lens on the difference between an owner’s motivation (sales, profts, growth, etc.) and the real motivation of the employee.

You can have all the programs and Keep everyone’s motivation on the same potential in your page, says Doug Trenary. And make sure dealership you the rewards are seen as attainable. want, but if the bell doesn’t ring in your employee’s mind that says, “I will give it all I’ve got today — because it’s worth it to me,” then there can be a serious gap between your motivation and your associates’. It’s the law of self-interest at work.

Let’s focus on three key employee motivators that can bridge the gap of puting and keeping everyone’s motivation on the same page: 1. Give your employees a chance to win something where they had to compete for it within the business.

Tat means plaques, trophies, certifcates, nice gadgets, etc.

— those tangible rewards that state they were for a specifc time period the best at something. I have seen incredible eforts to sell more tires and service when a trophy is on the line — and the bragging rights that go with it.

2. Give your employees a chance to travel somewhere they have not (and potentially with their spouse).

I travel a lot. You may, too. But many employees in tire dealerships may not have — they haven’t been to many places outside of home or experienced frst class hotels in other places. Tese experiences are indelible for a lifetime (and instill motivation for the next trip!).

3. Give your employees a chance to make extra

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money. Tat means money above their salary as bonuses, commissions, proft-sharing, etc. Te trick is the perception of who gains. Te boss might see the employee has a fair chance to earn some extra money — so they should work for it. Te employee (without evidence of the payout) may view the bar as too high and that the incentive program is a disguise for extra work. Ten they feel like they’re in confict with the company, in some cases.

Consider these ideas for money awards: • For bonuses and proft sharing, two rules: One: Don’t make the levels of proft too high to hit to get any money.

Two: Don’t make the payof too far out, i.e. (only) at the end of the full year. People can’t see that far past their bills.

Make the payout monthly or quarterly, and you will see the dividend relative to production — which is what you want.

• Stagger your proft levels for atainable payof: Maybe have a gold, silver, bronze approach where the bronze level of your proft-sharing is very atainable — even if you only give a small percentage. I contend, believe it or not, the percentage is not the key. I have a tire/service client who has a great bonus program for his service techs. I have talked to some of these techs out in the service bay. One said this; “Yep, when my wife and I frst saw that extra money on my check on Friday — and treated ourselves to dinner that night — I felt how real the bonus program was (for extra oil changes, alignments and needed service work) and haven’t missed it since.” Te whole motivation key is that the employee feels the real motivation to do the work!

• Publicize who wins: Have an award day and company newsleter that trumpets and shows the bonus winners accepting their rewards. It’s contagious — which is what you want! Do you think Sam out at the sales counter doesn’t want some extra money in his check when he sees Donna winning every week? Of course he does — and you’ll get more sales for it.

SalesMinded dealer owners and managers who get into the minds of their employees on the motivation question will see the employees dig into the work it takes to earn the rewards. It’s crucial not to confuse your motivation with theirs. ■

Doug Trenary, president of Doug Trenary’s Fast-Trac, Inc., is an award-winning author, speaker, and teacher who has helped companies of multiple sizes, including independent tire dealerships, increase sales and productivity since 1985.

His book, Te SalesMind, focuses on how to establish strong positions with yourself, your buyers and your time. For more information on his work, email him at info@dougtrenary.com or call (404) 262-3339.

MTD October 2012

Quik-Link: 800-687-1557 ext. 21137

European notebook

European tire crisis? What crisis?

General feeling at the moment is cautiously positive

W

ell, having covered tire labelling in predicts that as many as 330,000 new cars will last month’s edition, the hot topic in be registered. Couple this with the fact that Europe at the moment, (and I will be “personalized plates” are extremely popular in reporting on this burning issue again following the UK and a recent “plate auction” raised over its introduction in November), it’s time to turn GBP 4 million (U.S. $6.47 million), which is the my attention toward the other great concern largest amount in the past fve years. in the market over there. Of course I’m talking Of course, performance fgures for 2012 have about the euro crisis, which continues to fuel not been produced yet and it is quite possible speculation of another recession throughout all that percentages have dropped slightly, but I do

By John Stone not anticipate there being a signifcant diference.

European countries.

Tis situation has been hanging around for Working within the European tire markets I am the past 18 months and at the moment it seems a plan constantly talking to companies within all sectors and has fnally been put in place to ensure the euro currency the general feeling at the moment is cautiously positive. does not collapse. Only time will tell if it becomes a reality.

In my opinion the general downturn in trade caused by So how has this situation afected the tire industry in the “double whammy” of the euro crisis and recession has Europe? To be honest, not as much as some people had not hit the European tire market as hard as other industries. predicted or currently state.

With even more cars being produced each year, tire sales It’s true that industry as a whole has sufered, but the are always going to remain steady as drivers have no optire markets, although obviously afected, appear to be tion than to replace worn tires if they want to stay legal. maintaining a positive momentum in production and When I am driving throughout Europe, it is almost sales. Having said that, some companies including the impossible not to pass wholesaler trucks delivering tires major manufacturers will comment that the market is to the retail trade many times a day. Terefore, retail sales at best struggling and at worst — completely fat at the have to be steady enough to keep the sales market turning. moment. However, at the same time there is evidence that In my opinion, of far greater concern to the current tires are being sold at an acceptable level. future of European tire producers is the on-going increase For example, a recent independent report reveals that in “low cost” budget tires from China which continue to tire production in Europe increased last year with 47 billion food the market. Price has always been and will continue tires being produced which is a steady year-on-year increase to be the major issue for drivers when buying tires and of 6.6% and amounts to more and more independent retailers are being tempted an impressive 24% of by these brands which are “cheap and cheerful” but ofer a the total global produc- very reduced tread life span. Tese dubious brands are also tion in 2011. Also, the causing great concern to more established and respected replacement market en- Chinese brands as they tarnish the overall reputation of joyed a 4.41% increase Far Eastern tires in Europe which are generally accepted with 301.7 million tires as a competitive option. being manufactured Whilst there is a cloud of uncertainty in this market with the car and light through fnancial problems, the threat of cheap brands commercial market up will continue and perhaps the expected recovery of the by 4.2% (289 million euro will help. ■ tires) and truck by 9.1% (12.6 million tires).

Stone has been working within the global tire industry for European tire pro- the past 20 years. In 1993 he joined Tyres & Accessories Thriving vehicle sales and steady ducers exported over magazine in the UK as features editor before joining Tyre tire sales are keeping the European 8 billion euros worth of Trade News (UK) in 2000 as editor. In 2004 he launched his market at a steady level. tires in 2011, a signif- own company — Sapphire Media Services — as a business cant rise of 16.4% on the previous year. Tese statistics media consultant with clients in Singapore, Tailand, India, indicate that Europe remains stable during a difficult South Afica, Te Netherlands, Czech Republic, Germany, trading period.

Italy, the UK and Ireland. Stone also has remained working It is also signifcant to note that in the UK, the new “62” with Tyre Trade News as a feelance columnist and also registration plates are about to become available and the writes for tire and automotive related publications in South Society of Motor Manufacturers and Traders (SMMT) Afica and Asia.

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MTD October 2012

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Focus on dealers

Co-founder Joan Conrad handles the ribbon-cutting duties at the 33rd Conrad’s Tire Express & Total Car Care store in northeast Ohio. Joining her are Conrad’s President John Turk (left); Joan’s husband and co-founder, Chairman Ed Conrad; and City of Green Mayor Dick Norton. The store received no tax breaks. “They didn’t ask for one,” says Norton.

Another (No. 33) grand opening for Conrad’s!

In northeast Ohio, no dealer has more stores

By Bob Ulrich

F

or a company that likes to whisper its name, Conrad’s Tire Service Inc. sure is loud when it comes to opening a new store. Te company recently opened its 33rd Conrad’s Tire Express & Total Car Care outlet in northeast Ohio with much fanfare. Te Green location is the farthest south the company has ever ventured.

In celebration of its 43rd anniversary, the store was ofering $43 of a fourtire purchase — in addition to all manufacturer discounts, according to Craig Reed, store leader.

Reed, who joined the company last year, says he went through an intense training program “to learn the Conrad’s way of life. We do everything the same.”

Te new 6,500-square-foot store has 10 bays, “wider and longer” than normal, he adds. One bay is equipped with a 12,000-pound lif that accommodates larger vehicles like the Ford F-350. ■

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There was plenty of swag and cake at Conrad’s grand opening in Green, the farthest south of any Conrad’s location. The store mainly stocks Goodyear, Michelin, BFGoodrich and Mastercraft tires.

MTD October 2012

Top: The Green location was a hot property. “We ranked all the communities within northeast Ohio that we were not operating in and that were within our advertising and distribution net,� says General Manager Dominic Umek. Bottom right: Store Leader Craig Reed (left, with Tire Manager Jarrod Sayre) comes in every day at 7 a.m. to make popcorn and coffee for customers. Bottom left: After he fnishes putting on the lug nuts, tire tech Josh Rosenberger will lower the vehicle and fnish with a torque stick.

www.moderntiredealer.com

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Focus on industry

Get ready to roll into SEMA Show Global Tire Expo ofers largest tire show, TIA education

By Bob Bissler

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hree years ago, the Tire Industry Association (TIA) and the Specialty Equipment Market Association (SEMA) teamed up to create the Global Tire Expo – Powered by TIA (GTE).

Tis year’s GTE is lining up to be the biggest yet. GTE will run from Oct. 29Nov. 2, 2012, in conjunction with the SEMA Show. Te trade show begins Oct. 30 in Las Vegas, Nev. TIA is commited to training so it’s no surprise that the group is expanding this year’s educational sessions.

“TPMS at 10 and Tires at 2 are always well-atended with 100+ people in the room,” says Kevin Rohlwing, TIA senior vice president of training. “Last year was the frst time for Truck Tires at 10 and the atendance was light, but we’re commited to creating a commercial presence so it will continue.”

Rohlwing says that with this year’s sessions, TIA hopes to accomplish its main goal in education, which is to teach members of the industry something that will help them work more safely and efciently while improving productivity and proftability.

“We try to present a good mix of technical seminars to help atendees service tires

and vehicles, and management seminars that they can use to improve their business,” says Rohlwing. “Tere’s only one place where you can see the largest tire trade show in North America and get the added bonus of the TIA educational programs. We want our members to be successful and grow their businesses, so our goal every year is to provide them with the tools and ideas they need to be leaders in their markets.”

When GTE attendees are ready to explore other parts of SEMA, there is a free ofcial mobile app that has a map of the show foor (see sidebar).

“In addition to the tire section at the show, there are other sections that include exhibitors that manufacture tires,” says Della Domingo, SEMA public relations director. “Buyers are advised to check the product listings in the directory to ensure that they don’t miss any relevant exhibitors. For example, Coker Tire exhibits outside the tire section.”

Domingo says the show’s Proving Grounds ofers great opportunities for buyers to see frsthand how some of the tires perform in real life. Te demonstrations take place all week long and are located right in front of the convention center.

“Te show also features thousands of project vehicles,” says Domingo. “Viewing

Global Tire Expo attendees will get the chance to see thousands of project vehicles shod with the newest tires as part of their “overall concept. “

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the vehicles up close and in person is the best way to see how the tires really look on a vehicle. Buyers will be able to see what the tire can do for the vehicle and how it contributes to an overall concept.” ■

SEMA goes mobile SEMA Show attendees can now navigate the show foor by using the free “SEMA Show 2012” mobile application for iPhones and Android smartphones. The app includes: • Show Guide – A searchable, upto-date directory of all exhibiting companies, available sessions and speakers.

• Automated Matching – Matching functionality connects attendees to exhibitors based upon registration demographic information.

Attendees can also search for exhibitors by company name or product category and expand their list of matches.

• Appointment Scheduler – Attendees can create and manage appointments with exhibitors both on and off the show foor, designing a course of action for the event.

• Agenda Builder – An itinerary of sessions and exhibitor appointments currently scheduled for the attendee enables the registrant to make the most of their time.

• Electronic Literature – Attendees can download and view exhibitors’ electronic literature.

• Messaging Service – Attendees can receive important and informative messages sent out by the organizer.

• Floor Map – A viewable map to navigate the show foor.

• Full Integration – Convenient location within the registration dashboard makes connecting registrants easy.

To download the SEMA Show 2012 app, visit the Apple or Android market place.

MTD October 2012

Quik-Link: 800-687-1557 ext. 21139

TPMS

Serial data circuit performs Isuzu Ascender TPMS system functions Retrain tire pressure sensors when rotating wheels SUBJECT VEHICLE: 2006-08 Isuzu Ascender.

RELEARN PROCEDURE? Yes. SPECIAL TOOLS NEEDED? No. Te tire pressure monitoring system (TPMS) on 2006-08 Isuzu Ascenders warns the driver when a signifcant loss of tire pressure has occurred in any of the four tires. It allows the driver to display the individual tire pressures and their locations on the Driver Information Center (DIC) while the vehicle is being driven.

Te TPMS uses the Powertrain Control Module (PCM), the Body Control Module (BCM), the Instrument Panel Cluster (IPC) the DIC, the Endgate Module (EGM) on models with power sliding rear roof or Lifgate Module (LGM) on all other models. A Radio Frequency (RF) transmiting pressure sensor in each wheel/tire assembly, and the serial data circuit perform the system functions.

The EGM/LGM receives and translates the data contained in each sensor transmission, then sends the tire pressure and tire location data to the DIC. When the system detects a significantly under-infated tire pressure, a “Check Tire Pressure” message is displayed on the DIC. To remove an old sensor, follow these steps.

1. Raise the vehicle on a suitable support. Remove the tire/wheel assembly from the vehicle.

2. Demount the tire from the wheel following the tire changer manufacturer’s instructions while paying special atention to the following to avoid damaging the tire pressure sensor. a. Place the sensor’s cap and valve on a dry, clean surface afer removal. Te cap is aluminum and the

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Fig. 1

valve is nickel-plated to prevent corrosion. DO NOT substitute a cap or valve made of any other material. b. Position the bead breaking fxture 90 degrees from the valve stem when separating the tire bead from the wheel. c. Position the mounting/demounting head so the tire iron (or pry bar) can be inserted slightly clockwise of the sensor body when prying the tire bead up and over the mounting/demounting head. d. Using a tire machine rotate the tire/wheel assembly clockwise when transferring the tire bead to the outside of the wheel rim. e. Repeat for the inner bead.

3. Remove the tire pressure sensor nut. See Figure 1.

4. Remove the sensor from the wheel hole.

5. Remove the sensor grommet from the valve stem.

Clean debris before installation

To install a new sensor, follow these steps.

1. Clean any dirt or debris from the grommet sealing areas.

Install the grommet on the sensor valve stem.

2. Insert the sensor in the wheel hole with the air passage facing away from the wheel.

3. Install the sensor nut, and position the sensor body parallel to the inside wheel surface while tightening the

MTD October 2012

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TPMS

nut to 62 in.-lbs. NOTE: A replacement tire pressure sensor is shipped in OFF mode. In this mode, the sensor’s unique identifcation code cannot be learned into the EGM/LGM’s memory. Te sensor must be taken out of OFF mode by spinning the tire/wheel assembly above 20 mph for at least 10 seconds on order to close the sensor’s internal roll switch.

4. Before installing the tire on the wheel, note the following items to avoid tire pressure sensor damage upon tire mounting. a. Position the mounting/demounting head 180 degrees from the valve stem. b. Position the bead transition area 45 degrees counterclockwise of the valve stem. c. Using a tire machine rotate the tire/ wheel assembly clockwise when transferring the tire bead to the inside of the wheel rim. d. Repeat items for the outer bead.

5. Install the tire on the wheel. Install the tire/wheel assembly on the vehicle.

Retrain the tire pressure sensor.

NOTE: When the wheels have been rotated, or a tire pressure sensor or EGM/ LGM has been replaced, retrain the tire pressure sensor.

Retrain for optimal performance

When the tire pressure warning light illuminates and a warning message appears on the DIC, immediately check the air pressure of all tires and adjust to the specifed pressure.

The DIC will say “SERVICE TIRE MONITOR” if a sensor needs retrained.

To retrain a new sensor, follow these steps.

1. Turn the ignition to the ON position,

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with the engine of. Apply the parking brake.

WARNING: Overinfating tires may cause personal injury or damage to the tires and wheels.

When increasing tire pressure, do not exceed the maximum infation pressure as noted on the tire sidewall.

2. Turn the headlight switch from OFF to parking lamps four times within four seconds. A double horn chirp will sound and the low tire pressure indicator will begin to fash to indicate the learn mode has been enabled.

3. Starting with the lef-front tire, increase or decrease the pressure for eight to 10 seconds or until a horn chirp sounds. Te horn chirp may occur before the eight to 10 second pressure increase/decrease time period has been reached, or up to 30 seconds afer the eight to 10 second pressure increase/decrease time period has been reached.

4. After the horn chirp has sounded, proceed as in step 3 for the next three sensors in the following order: right-front, right-rear and lef-rear.

5. After the left-rear sensor has been learned, turn the ignition switch to the OFF position to exit the learn mode.

Adjust all tire pressures to specifcation. ■ Information for this column comes from Mitchell 1’s ”Tire Pressure Monitoring Systems Guide” for domestic and import vehicles through 2010.

Headquartered in Poway, Calif., Mitchell 1 has provided quality repair information solutions to the automotive industry for more than 80 years.

For more information, visit www.mitchell1.com.

MTD October 2012

Quik-Link: 800-687-1557 ext. 21143

Products

AIRBOT saves buffng time B&J Rocket says its RFBOT (Round-Faced Buff Out Tool) has a round profle that ensures a smoother buffng crater. The RFBOT AIRBOT series offers angled set-up and works effciently with reduced buffng time, the company notes. The tool is cooled with an open design, resulting in a longer lifetime.

B&J ROCKET AMERICA INC. Quik-Link: (800) 687-1557, ext. 21170 www.mtdquiklink.com/21170

Laser fast alignment system Bee Line Co. says the new LC7500 computer alignment system redefnes laser alignment using cutting-edge technologies. The unit features a 32-inch HD TV monitor with built-in speakers matched with the enhanced cabinet design, custom molded top and remote display charging station. The software screens have been redesigned to maximize font size for ease of viewing and drop-down menus make it easier to navigate.

BEE LINE CO. Quik-Link: (800) 687-1557, ext. 21171 www.mtdquiklink.com/21171

Continental PureContact replacement tire Continental Tire the Americas LLC’s PureContact is a luxury performance all-season replacement premium tire. The tire features Continental’s EcoPlus Technology that improves treadwear while enhancing grip on wet roads. Tuned Performance Indicators have Dry, Wet and Snow letters in

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the tread that indicate the tire’s optimal performance levels.

Comfort Ride Technology absorbs vibrations caused by road surface irregularities. The PureContact is available in sizes ranging from 15- to 18-inch wheel diameters with a UTQG rating of 700 AA for H and V speed.

CONTINENTAL TIRE THE AMERICAS LLC Quik-Link: (800) 687-1557, ext. 21172 www.mtdquiklink.com/21172

Goodyear Assurance Fuel Max The Goodyear Tire & Rubber Co.’s Assurance Fuel Max is an all-season tire with a full range of 32 sizes, ftting more than 80% of the passenger tire segment. The tire’s fuel-saving tread compound uses functional polymers that help reduce energy loss as the tire rolls, saving up to 2,600 miles worth of gas over the life of a set of tires compared to other Goodyear tires.

A “Dry Tread Zone” with solid shoulder blocks helps enhance handling and grip on dry pavement. The Assurance Fuel Max is available in 34 passenger car sizes ranging from 185/65R15 88H to P235/65R17 103H. GOODYEAR TIRE & RUBBER CO. Quik-Link: (800) 687-1557, ext. 21173 www.mtdquiklink.com/21173

Safety Station with emergency eye wash Shure Manufacturing Corp.’s Safety Station features an emergency eye wash attachment and stores frst aid kits, bandages and supplies. It is also useful for storage of Material Safety Data Sheets. Features include a heavy-duty reinforced steel construction, stainless steel top and chase panels and leg levelers.

Standard accessories include mirror, soap dispenser, towel dispenser, waste receptacle and emergency eye wash attachment. The Deluxe Safety Station includes a 36-inch-wide sink, a 24-inch-wide storage cabinet and 5-foot upper binder cabinet with gas spring shocks and task light.

SHURE MANUFACTURING CORP. Quik-Link: (800) 687-1557, ext. 21174 www.mtdquiklink.com/21174

MTD October 2012

TBC adds 8 sizes to Velozza SUV/LT tire line Consumers in the market for performance SUV or light truck tires will soon have more to choose from with the addition of eight new sizes to TBC Wholesale Group’s Velozza STX All Season UHP line. The new large diameter sizes will cover popular W- and V-rated 20-inch to 26-inch plus-size fitments as well as the large volume OE ftment for size 275/55R20. The Velozza STX features an all-season tread pattern, extra load carrying capacity and a wheel fange guard to protect rims from scuffng and damage.

TBC WHOLESALE GROUP Quik-Link: (800) 687-1557, ext. 21175 www.mtdquiklink.com/21175

Toyo Open Country A/T II all-terrain tire offers long life Toyo Tire U.S.A. Corp. says its new Toyo Open Country A/T II is now available to truck and SUV owners to offer over 40% more tread life than the leading competitors. The allterrain tire features strong all-season performance, an aggressive new tread design and a quiet ride. It comes with a 65,000-mile warranty for P-Metric and Metric sizes, as well as a 50,000-mile warranty for LT and fotation sizes. The Open Country A/T II is available in sizes ranging from 15- to 20-inch rim diameters, including original equipment and plus ftment sizes.

TOYO TIRE U.S.A. CORP. Quik-Link: (800) 687-1557, ext. 21176 www.mtdquiklink.com/21176

POWER PRODUCTS

Products

What’s new?

Find out on the pages of our ‘Power Products’ section!

“Power products” offers tire dealers, wholesale/

distributors and retreaders a preview of hot, indemand products.

Products highlighted include the newest tires for farm tractors, lawn and

garden equipment, pas-

senger cars, light trucks, crossovers and SUVs.

Also presented is a technologically advanced tire

Cordless fashlight lasts for full 15 hours Ingersoll Rand has expanded the IQV20 Series cordless tool line with the addition of the L5110 cordless LED task light. The L5110 is engineered for exceptional performance, versatility and durability on the job, says the company. The L5110 features a patented aluminum head that dissipates heat and is lightweight, yet heavy-duty. The L5110 is durable and has an impact-resistant housing to protect against corrosive fuids, chemicals and repeated drops. The versatile work light has a multi-position head, handsfree standing base and hang hook to light work spaces from any angle.

INGERSOLL RAND Quik-Link: (800) 687-1557, ext. 21177 www.mtdquiklink.com/21177

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delivery system, a tire

dealer software system, the latest retreading

technology, zinc wheel weights and much more!

Our “Power Products” present new avenues of opportunity for your

company with the latest innovations, products, programs and technology.

Enjoy!

MTD October 2012

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Instant information direct from MTD advertisers

To request free product information by phone, call 800-687-1557, enter the extension number listed below, and you will be immediately transferred to the company you want to talk with — it takes only seconds.

To request information online, log on to www. mtdquiklink.com/ plus the corresponding Quik-Link number. You’re just a click away from receiving free information on the new products that interest you.

Advertiser ADVICS North America Inc. Aeolus Tyre Company Ltd. Alliance Tire Group American Omni Trading Company American Tire Distributors ANCO Atturo Tire Corporation Bartec USA Bee Line Company BKT Tires USA Inc. Blackburn’s Hubcap & Wheel Solutions CIMS Inc. Continental Tire the Americas LLC Cooper Tire EcoExpress Tire Centers Falken Tire Falken Tire Federated Auto Parts GE Capital General Tire Greenball Corporation GT Radial Hankook Tires Hennessy Industries Inc. Hennessy Industries Inc. Hercules Tires Horizon Tire Inc. Hunter Engineering Company Independent Tire Dealers Group International Marketing Inc./EQUAL Kenda USA Kumho Tire USA MaddenCo Inc. Marangoni Tread North America Inc. Monroe Shocks & Struts Nexen Tire America Inc. NitroFill Perfect Equipment Inc. SEMA Show Sentaida International Inc. TBC Wholesale Group Tire Centers LLC Tire Industry Association Toyota Motor Sales U.S.A. Inc. Vogue Tyre & Rubber Company Yokohama Tire Corporation

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Your turn

What the retreading industry can teach current politicians Dear Editor: A lot of epithets are thrown around during the intensity of political campaigns. Te current lead up to the presidential election is no exception. However, there’s one word being used that we take exception with; “retread” has been overused to highlight negative aspects of candidates or their policies.

Whether it’s New Jersey Governor Chris Christie calling

2) Retreading is environmentally friendly — let’s not argue over climate change and whether it’s happening and what’s causing it. Tere is no argument that the retread industry was green decades ago. It takes 22 gallons of oil to manufacture a new truck tire, but only seven gallons of oil to retread the same sized tire. Not to mention the steel, natural rubber and other raw materials which are saved during the retreading process. Tink about the millions of tires that are kept out of landfll every year due to retreading.

3) Retreading delivers on the promise of safety— those airplanes the candidates are fying in... they’re landing on retreaded tires; the local fre departments the candidates are visiting... their fre trucks are rolling on retreaded tires; those campaign fyers being delivered by the post ofce... they’re delivered on vehicles using retreaded tires; the school bus waiting outside the school during a campaign stop... safely delivering children every day on retreaded tires.

In this election year and always, retreads deserve respect. They are technologically advanced products engineered to exacting specs. Shown is a step in the Bridgestone Bandag process.

California Governor Jerry Brown an “old retread” or President Barack Obama slamming Mit Romney for ofering “a retread of the same old policies,” the word is geting a real workout during this political season.

Tere are multiple meanings to the word “retread.” We assume the politicians are using the following defnition for their purposes: “To make or do over again, especially with minimal revision; rehash.” But every time we see the word in print, we think about the retreading industry and the positive impact it has on our country during these tough economic times. So, we’re taking back the word from politicians and using it to show what can be learned from the tire retreading industry:

1) Retreading is fscally sound — there’s no need to build up your own defcit if you invest in retreaded tires. With savings up to 65% compared to the cost of a new tire you can deliver a balanced budget that everyone agrees on. Federal, state and local governments take advantage of retreaded tires to save money and allow them to invest more in other programs for their communities.

What’s a retread? Well, it’s not a rehash of warmed-over policies or candidates. It’s a technologically advanced product that is carefully engineered to exacting specifcations to deliver safety, reliability, and high-performance. It’s a product that is conscious of its impact on the environment and delivers massive economic benefts to our country.

Now that’s the type of politician we can get behind.

We’re retreaders, and we approve this message.

David Stevens, Managing Director Tire Retread & Repair Information Bureau Falls Church, Va.

Jack Williams Tire is opening its third Philadelphia-area warehouse Dear Editor: In case you are not aware of it, Jack Williams Tire Co. has two Philadelphia area warehouses, with a third one opening this month in King of Prussia to beter serve the greater Philadelphia market with “hotshotz” delivery many times per day.

We are a true multi-brand distributor with 80-plus years of experience and free, legendary delivery service!

Al Breese, Programs Manager/Marketing Manager Jack Williams Tire Co. Inc. Avoca, Pa. Te King of Prussia warehouse will serve customers on Philadelphia’s west side, Breese notes. Te two other Philadelphia warehouses serve south and northeast Philly. Te company is proud of its multiple daily (even Saturday) deliveries. Te company term “hotshotz” delivery is emblazoned on its delivery trucks. -Ed. ■

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MTD October 2012

Quik-Link: 800-687-1557 ext. 21145

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