Modern Tire Dealer - February 2011

Call for entries: Modern Tire Dealer’s Tire Dealer of the Year FEBRUARY 2011 • VOL. 92, NO. 2 • TEN DOLLARS • A BOBIT PUBLICATION

From cosmetic to tuner to... UHP?!

The evolution and the overlapping in the performance segment THE INDUSTRY’S LEADING PUBLICATION

New tire mounting/balancing equipment eases performance tire service The chaotic world of OTR tires

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Features 18 From cosmetic to tuner to... UHP?!

Rick Brennan explains the evolution and the overlapping in the performance segment

The Industry’s Leading Publication February 2011, Volume 92, Number 2

Departments 4 Editorial Is Tire Rack your competition?

6 Online Call for entries for MTD’s Tire Dealer of the Year

8 News/views A new and improved Mr. Tire — K&M Tire wants to grow program ‘like crazy’

28 Times they are a-changin’ New tire mounting/balancing equipment eases service

16 Ludwig Report Look for a renewed consumer focus on performance vs. price

38 Counter intelligence The ‘Zat Method’ in practice — Taking the positive approach proves profitable

40 Focus on industry Surviving and thriving — Kumho makes necessary changes in 2010

42 TPMS

Commercial Tire Dealer™

2005-10 Nissan Frontier service requires a variety of tools

44 Products

31 The chaotic world of OTR tires

46 Quik-Link

Global tire segment is extremely dependent on markets abroad

48 Classified

34 Tire restoration New type of shoulder repair could save money and time

Modern Tire Dealer is a proud member of:

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TRIB

TIRE RETREAD & REPAIR INFORMATION BUREAU

Member An Industry Association

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Editorial

Is Tire Rack your competition?

T

he Tire Rack is an independent tire dealership.

Its business model may be different from yours, but the owners have complete control over it.

Is it really your competitor? I raise the question because I have heard many dealers grumble over the years about Tire Rack. Its mailorder format makes it a tire dealer

By Bob Ulrich with a nationwide reach.

In that sense, the answer is “Yes, Tire Rack is your competitor.” Anyone who wants to buy a tire from Tire Rack could buy that same tire from you.

If the customer wants to buy a tire and wheel package, mounted and balanced, from Tire Rack, he can.

However, the customer still has to have the tires installed, which is an opportunity for you to make a little money. Tire Rack has a network of “Recommended Installers” that can perform the work. In my area, Akron, Ohio, they include independents such as Tire Source and Conrad’s Tire Express & Total Car Care; Goodyear company-owned stores; and a custom trim shop.

How many of you have ever used Tire Rack as a wholesale distributor, especially when you need an exotic size? That makes Tire Rack your partner.

As you can see, the line between competitor and supplier is blurred when it comes to Tire Rack.

How much competition do car dealerships bring to our market? They own 6% of the consumer tire retail market share in the United States (see chart below), double what it was in 2004.

Ford Motor Co. has been particularly active selling tires, both at its franchised dealerships and Quick Lane Tire & Auto Centers chain. Ford claims it sold 1 million tires through its Quick Lane outlets in 2010.

Earlier this month, the vehicle manufacturer opened its 600th Quick Lane outlet, which sells 11 different brands.

I was at the grand opening of Hennelly Tire & Auto Inc.’s 30th store in upscale Oakland Park, Fla., last November. “In that neighborhood, we really fight the Mercedes and Lexus dealers, not Tire Kingdom and Tires Plus,” Chairman and CEO Dan Hennelly told me.

Car dealerships, then, are one of your biggest rivals, right? Not so fast. Nearly 52% of the 30,000 independent tire dealers in the U.S. sell to car dealerships, according to a recent Modern Tire Dealer survey. To some of you, like Dealer Tire LLC, auto dealerships are your customers.

The strength of mass merchandisers is not what it once was. Their market share has dropped from 18.5% to 14.5% in the last 15 years. But Sears Holdings Corp. has been working on turning that trend around.

For many years, Sears ran a huge newspaper advertising campaign focusing on tire prices at its nearly 850 Sears Auto Centers. The current campaign, while still pricey, has been watered down. The ads not only run in fewer papers, but also less frequently. And they don’t push pricing (Sears offers nine tire brands).

As a Sears rep recently told me, by running a lot of tire sizes and prices, you take the risk of alienating customers who concentrate on the price, not the size. So Sears emphasizes specials, such as “Buy three and get one free.”

Sears, under its Sears Authorized Independent Auto Centers LLC subsidiary, began its franchise program in 2010. The company says the program “offers automobile dealers the opportunity to operate licensed Sears Auto Centers, bringing the Sears brand, buying power, distribution network, systems and corporate support to automotive aftermarket businesses.”

Sears also introduced a fleet strategy last year in an effort to grow the commercial side of its automotive business.

The competitive nature of the tire industry — at all levels — continuously changes and evolves. There is one constant, however. Independent tire dealers dominate tire sales in the aftermarket.

You represent 60% of consumer tire retail sales in the U.S., and control 76% of consumer tire aftermarket distribution.

You are number one. ■ If you have any questions or comments, please e-mail me at bob.ulrich@bobit.com.

Ford claims it sold 1 million tires through its Quick Lane outlets in 2010.

U.S. CONSUMER TIRE RETAIL MARKET SHARE (based on retail sales) Distribution channel

2010

2009

Independent tire dealers

60.0%

60.0%

Mass merchandisers

14.5%

14.5%

Warehouse clubs

9.5%

9.5%

Tire company-owned stores

7.0%

7.0%

Auto dealerships

6.0%

5.5%

Service stations

1.5%

2.0%

Miscellaneous outlets

1.5%

1.5%

Source: 2011 Modern Tire Dealer Facts Issue

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Online

Call for entries!

N

ominations are now open for Modern Tire Dealer’s 2011 Tire Dealer of the Year award! Simply click on the link to our nomination form on the right hand side of our Web site’s home age. (A mail-in nomination form also can be found on page 27 of this issue.)

Our Tire Dealer of the Year program was started in 1993 and remains the tire industry’s most prestigious honor.

The 2011 Tire Dealer of the Year will be featured in a cover article in the September issue of Modern Tire Dealer. And in recognition of this achievement, MTD will donate $1,000 to the winner’s favorite charity. MTD has donated more than $130,000 to charities since the Tire Dealer of the Year program’s inception.

Past winners have been John Snider, Snider Tire Co. (2010); Bill Ziegler, Ziegler Tire & Supply Co. (2009); Ken Towery, Ken Towery’s AutoCare SuperCenter (2008); Charlie Creighton, Colony Tire Corp. (2007); Bill Williams, Jack Williams Tire Co. (2006); Paul Zurcher, Zurcher Tire Inc. (2005); Bob and Juanita Purcell, Purcell Tire & Rubber For last year’s winner, Modern Tire Dealer donatCo. (2004); John Mar- ed money in John Snider’s name to the Greensshall, Grismer Tire Co. boro, N.C., chapter of The Salvation Army, being represented here by Major Paul Egan (right).

Inc. (2003); Tom Raben, Raben Tire Co. (2002); and Larry Morgan, Morgan Tire & Auto Inc. (2001). The late Les Schwab, founder of Les Schwab Tire Centers, was our Tire Dealer of the Year in 2000. He was preceded by Raynal Pearson, Pearson Tire Co. (1999); Tom Gegax, Team Tires Plus Ltd. (1998); the late Walt Dealtrey Sr., Service Tire Truck Centers (1997); David Stringer, Stringer Tire Co. (1996); Tony Troilo, Rosson & Troilo Motor Co. (1995); Jerry Bauer, Bauer Built Inc. (1994); and Barry Steinberg, Direct Tire & Auto Service (1993). All of the winners’ stories also are archived on www.moderntiredealer.com.

Nominate yourself, nominate another deserving dealer — all independent tire dealers are eligible for the award except our previous winners.

It’s quick and easy at www.moderntiredealer.com.

Total access — totally free www.moderntiredealer.com

3515 Massillon Road, Suite 350 Uniontown, Ohio 44685 (330) 899-2200, fax (330) 899-2209 Web site http://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: KAREN 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 The Dyal Company John.Dyal@bobit.com (760) 451-5026, fax (760) 451-5039 West Coast: MARIANNE DYAL The Dyal Company Marianne.Dyal@bobit.com (760) 451-9216, fax (760) 451-9292 Automotive Aftermarket: DAN THORNTON djtinc@gmail.com (734) 676-9135, mobile (313) 410-0945 fax (734) 675-6744 Classified Sales: DONNA STEWART Donna_Stewart@cox.net (405) 513-6794, fax (360) 406-7576 Reprint Sales: KAREN 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 offices: 3520 Challenger St. Torrance, CA 90503 Chairman: Edward J. Bobit CEO & President: Ty F. Bobit Chief Financial Officer: 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 offices. 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 first issue. Please address Editorial and Advertising correspondence to MODERN TIRE DEALER, 3515 Massillon Road, Suite 350, Uniontown, OH 44685-6217. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. For your information: We sometimes make our subscriber information (i.e. fax, e-mail or mailing address) available to carefully screened organizations whose products and services may be of interest to you. If you prefer not to have your information made available, please write MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068.

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News/views

A new and improved Mr. Tire K&M Tire wants to grow program ‘like crazy’

By Bob Ulrich

T

he Mr. Tire retail program was not the only reason K&M Tire Inc. purchased Triton Tire & Battery from Universal Cooperatives Inc. last November. Five warehouses and a strong foothold in the Midwest were incentive enough to make the deal.

“The program was a part of the equation,” said Ken Langhals, president of K&M Tire.

“The main reason we were interested was the distribution in the Midwest. Ag tires were a big part of it.”

Still, K&M executives believed the underutilized program had the potential to double in size by the end of 2011, from 191 members to nearly 400. So that was their focus to dealers at the K&M Tire Expo, held in Red Wing, Minn., last month.

“Our goal is to make Mr. Tire one of the strongest tire programs in the country,” said Mike Perkins, marketing and programs manager. He announced several changes to the program, including a new logo and five additional tire brands: Goodyear, Dunlop, Kelly, Continental and General. Mr. Tire Mike Bicknell, left, vice president of Mitas brand sales for Mitas Tires dealers will continue to have access to the North America Inc. (formerly CGS Tires), talks with Mary Ann and Cooper, Hankook and Dean brands.

Curtis Kaiser at the K&M Tire Expo. Curtis is shop foreman for Central “We know the brands are critical for the Dakota Frontier Co-operative in Napoleon, N.D. growth.” There are more brands to come, he said. As part of the program, two Mr. Tire nationwide road K&M Tire is a “firm believer” in brand supported retail hazard service warranties will be available to consumers: Gold advertising, according to Perkins. Mr. Tire members also will (pro-rated) and Platinum (free replacement). be able to sell tires over the Web, although that feature is still being fine-tuned. “We are still looking at a way to show customers your inventory.”

Perkins said K&M Tire has work to do combining Triton Before it sold the program to K&M Tire Inc., Universal Tire’s five warehouses with its own to create one distribution Cooperatives Inc. licensed the name to Monro Muffler Brake network.

The company has 11 distribution centers in nine states: Inc. According to Monro chairman and CEO Robert Gross, the Ohio, Michigan, Illinois, Wisconsin, Minnesota, North Dakota, open-ended agreement gives him exclusive rights to the Mr. Nebraska, Kansas and Arkansas.

Some of the new warehouses it purchased are too small.

Tire name west of the Mississippi, with two exceptions.

The company needs trucks and truck drivers. And it needs inventory.

• Monro shares the rights with K&M in Ohio.

The new logo will be eased into existing dealerships (for a • The rights in Illinois are exclusive to K&M. look at the Mr. Tire logo through the years, check out Modern Monro operates approximately 130 Mr. Tire retail stores in Tire Dealer’s Facebook page). K&M Tire also plans to keep the the mid-eastern United States, with plans to expand.

2010 Mr. Tire pricing program in place through 2011.

“Our preference is to get (the name) back, where we “We’re working diligently to revitalize this program,” said have total control over Mr. Tire,” says Ken Langhals, K&M Perkins. “We’re going to add stability to it. We’re going to grow president. the program like crazy.” ■

Mr. Tire vs. Mr. Tire

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News/views Toyo withdraws from the GTY Tire Co. The lawsuit pitting Toyo Tire Holdings of Americas Inc. against Continental Tire the Americas LLC and Yokohama Corp. of America is over.

Toyo says it has reached an agreement settling all claims relating to the case, captioned “Toyo Tire Holdings of Americas Inc. v.

Continental Tire of North America, Inc., et al. (Case no. SACV 10-00052 JVS). As a result, the pending lawsuit and related arbitration has been dismissed, and the injunction entered by the District Court in California in 2010 has been dissolved.

Under the terms of the settlement agreement, Toyo has agreed to withdraw from the GTY Tire Co. “in consideration for the parties’ mutual release of all claims. GTY was a joint venture formed by the three parties in 1988. Located in Mount Vernon, Ill., the plant has the capacity to produce 7,300 truck tires a day, according to the 2011 Modern Tire Dealer Facts Issue.

In addition, pursuant to the agreement, Continental and Yokohama agreed to produce “a certain quantity of truck and bus radial tires” for Toyo at the facility, which Toyo may purchase from GTY monthly for approximately the next year.

TIA schedules training programs in 2011 The Tire Industry Association (TIA) has released its 2011 dates for its Automotive Tire Service (ATS) and Commercial Tire Service (CTS) Certified Instructor programs.

The scheduled dates for the 2011 ATS are: Baltimore, three-day: March 29-31 and Oct. 18-20.

Baltimore, four-day: March 29-April 1 and Oct. 18-21.

Denver, three-day: May 17-19 and Dec. 13-15.

Denver, four-day: May 17-20 and Dec. 13-16.

The newly revised ATS program combines in-depth classroom instruction with comprehensive, hands-on education. Students who successfully complete the program are prepared to return to their companies and impart that knowledge to their fellow employees by conducting in-house Certified ATS Technician or Instructor classes.

The scheduled dates for the 2011 CTS are: Baltimore, three-day: Feb. 22-24 and Sept. 13-15.

Baltimore, four-day: Feb. 22-25 and Sept. 13-16.

Denver, three-day: April 5-7 and Nov. 15-17.

Denver, four-day: April 5-8 and Nov. 15-18.

The CTS program utilizes classroom instruction with hands-on learning and meets the requirements laid out by OSHA Standard 29 CFR 1910.177. Students who successfully complete the CTS Instructor program are qualified to certify technicians in the field.

“Both TIA’s CTS and ATS Instructor Programs have been updated within the past two years,” says Roy Littlefield, TIA’s executive vice president. “This means that technicians have the opportunity to receive the most comprehensive and up-to-date instruction on the latest tire service techniques.

“TIA’s training programs are widely considered to be among the best in the world, and a TIA Certification can benefit the technician, the shop owner, and the motoring public.”

Persons interested in attending these classes can register by visiting the “Training & Education” section of TIA’s Web site, www.tireindustry.org, or by calling (800) 876-8372.

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News/views

bites

Kadrich retires from AAIA Lee Kadrich, vice president, government affairs and trade for the Automotive Aftermarket Industry Association (AAIA), has retired after 29 years. Kadrich served as staff liaison to the AAIA Government Affairs Committee and as executive director of two AAIA membership segments, the Auto International Association and the Heavy Duty Distribution Association.

Hankook sets plant goals Hankook Tire says that its new manufacturing plant in Bekasi, Indonesia, will enable it to become the world’s fifth largest tire company, achieving an annual output of 100 million units by 2014.

CGS Tyres expands in France Copadex and CGS Tyres have entered into an agreement where Copadex will cede exclusivity in distributing CGS-produced Continental agricultural tires in France.

CGS Tyres now sells all its brands in France, namely Mitas, Cultor and Continental (produced under license).

Conti’s China plant begins testing Continental AG’s new passenger tire plant in Hefei, China, has successfully begun trial production.

The company says it will invest 180 million euros in the first phase, and final production volume will be 4 million tires per year. The company plans a transition to full commercial production by the end of March.

Bobit celebrates anniversary Bobit Business Media’s flagship magazine, Automotive Fleet, celebrated its 50th anniversary with a special issue in January. The magazine and the company were started in 1961

by Ed Bobit, and today the company publishes 19 magazines (including Modern Tire Dealer), 40 industry Web sites and 12 trade shows and conferences.

AKH hires Schaeper as president AKH Co. Inc., which does business as Discount Tire Centers in California, has hired Michael Schaeper as president. He reports to Chairman Andy Andonian and Vice Chairman Hratch Andonian.

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Manufacturers announce tire price increases Cooper Tire & Rubber Co. is raising prices 2.5% on its passenger and light truck tires.

The increase went into effect Feb. 1. As has been the case in the past, back orders will not be protected. The reason is the “unprecedented levels of inflation in raw material costs,” according to the company.

Also on Feb. 1, Michelin North America Inc. raised consumer tire prices. The price hikes “vary by product line.”

Bridgestone Bandag Tire Solutions also has instituted a 12% price increase on its Bridgestone and Firestone brand radial truck and bus tires in the U.S. In addition, Nexen Tire America Inc.’s tire prices were increased up to 8% effective Jan. 1.

New name for CGS Tires: Mitas Tires North America CGS Tires US, Inc., the U.S. subsidiary of Czech-based CGS Tyres, has changed its corporation name to Mitas Tires North America Inc., and will relocate its main U.S. office from North Carolina to Charles City, Iowa, where the company is building a new tire factory that will start producing agricultural radial tires in 2012.

The company made the initial announcement for the move at the Farm Progress Show in Boone, Iowa, last August, and said that development is proceeding according to plan.

Michelin offers warranties on winter tires in the U.S. Michelin North America Inc. is backing its Michelin X-Ice Xi2 and Latitude X-Ice Xi2 tire lines with a 40,000-mile tread wear warranty. This is the first time Michelin has provided such a warranty on winter tires in the United States.

In addition to the tread wear limited warranty, the Michelin X-Ice Xi2 and Latitude X-Ice Xi2 winter tires also are covered under the material and workmanship limited warranty. Both lines utilize advanced tread block technology — a combination of multiple sipes and micro-pumps with a state-of-the-art rubber silica-based rubber compound called FleX-Ice. Additionally, the tires are equipped with Comfort Control Technology, which utilizes computer-optimized design and precision manufacturing to reduce vibrations and road noise.

“Winter tires are designed specifically for winter usage and we do not recommend year-round use,” a company spokesman says. “As such, we do place a restriction that tires cannot be in service longer than the winter season (generally six months). However, for those who do generate high mileage in winter conditions, this tread life warranty is another value add from Michelin.

“We recommend standard rotation every 6,000 to 8,000 miles and, if consumers do not achieve 40,000 miles, any shortfalls will be credited toward a new set.”

The company is using 2/32nds as the “wear-out” point. If the consumer decides to replace the tires earlier in the tire life, he or she has made a choice to not exercise the benefit of the tread life warranty coverage, the company states.

Titan makes moves to reduce debt by $59.6 million Titan International Inc. announced that on Jan. 19, 2011, it closed its Exchange Agreement for 5.625% Convertible Senior Subordinated Notes due 2017.

As part of the agreement, note holders exchanged $59,616,000 in aggregate principal amount of the convertible notes for 6,617,709 shares of the company’s common stock, plus a payment for the accrued and unpaid interest.

In addition, Titan’s total indebtedness will be reduced by approximately $59.6 million.

For complete daily, even hourly news coverage of the tire industry, check out Modern Tire Dealer’s Web site at www.moderntiredealer.com MTD February 2011 4/26/11 11:27:16 AM

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News/views

bites

SEMA HOF nominations open Nominations are now open for the Specialty Equipment Market Association (SEMA) Hall of Fame, the association’s highest honor. Nominations are being accepted until March 16, 2011.Visit www.semahof. com for more information.

New dates for Frankfurt show The dates for Automechanika Frankfurt 2012 have been changed to avoid a conflict with another trade show. The show will be held one week earlier, from Sept. 11-16, 2012, at Frankfurt am Main. For more information visit www.automechanika.com.

YTC promotes key executives Yokohama Tire Corp. (YTC) has promoted several key executives as part of its management strategy: Dan King, to vice president of sales and marketing; Thomas Masuguchi, to controller and vice president; John Cooney, to director of export; Rick Phillips, to director of commercial sales; Minoru (Mike) Nakayama, to chief advisor, corporate strategy and product planning; Percy Cottle, to zone manager, export; and Andrew Briggs, to senior manager of motorsports.

Tyrexpo Africa 2012 set Tyrexpo Africa 2012 will be held March 6-8, 2012, at the Sandton Convention Centre, Johannesburg, South Africa. There will also be a one-day tire conference during the event. For more information, see www.eci-international.com.

Industrial Tires Ltd. founder Tom Buckley dies Tom Buckley, owner and founder of Industrial Tires Ltd. (ITL) in Toronto, Canada, died on Jan. 14. He was 78.

Under his direction, ITL grew from a localized importer and distributor of tires for material handling equipment into a globally recognized leader in specialty solid tire design and development.

Buckley began his career with the Goodyear Tire & Rubber Co. in the 1950s. He left Goodyear in 1958 to form his own Canadian-based import/ distribution company.

In 1965 he signed a technology-sharing agreement with Monarch Rubber Co. (predating Teledyne Monarch) to introduce rationalized manufacture of Tom Buckley, owner and tires for forklift trucks to Canada.

In 1978, ITL purchased the industrial tire division founder of Industrial Tires of the Uniroyal Tire Corp. and expanded direct Ltd. in Toronto, Canada. marketing into the United States. Shortly thereafter, he acquired Teledyne Monarch’s remaining shares in ITL and focused on global expansion.

He later formed technical agreements with major European solid tire manufacturing firms such as Gumasol (Gummi-Mayer Corp.) and Vorwerk. Ultimately, his direction led to the installation of a state-of-the-art solid tire manufacturing facility in China.

Buckley continued to direct the company as its CEO until 1997, when he sold the company to the Cascade Corp.

BATO reorganizes Consumer Tire Business division Bridgestone Americas Tire Operations LLC (BATO) has reorganized its Consumer Tire Business management structure in the United States and Canada.

The fully integrated management structure “will facilitate continued growth and make the business even more customer-focused,” according to the company.

The reporting structure has been consolidated for the following areas: original equipment (OE); replacement/wholesale and retail consumer tire businesses in the U.S. and Canada; and Credit First NA (the company’s private label credit card business).

BATO also announced the new leadership team for the integrated Consumer Tire Business.

Larry Magee has been named president. He was promoted from chairman, CEO and president of Bridgestone Retail Operations LLC (BSRO).

John Baratta is now vice president. He will hold the title concurrently with his position as president of replacement tire sales, U.S. & Canada, Consumer Tire Sales Division. Baratta will report directly to Magee.

Complaint by associations leads to FTC Alert The Federal Trade Commission (FTC) has released an FTC Consumer Alert in response to a complaint filed by the Automotive Aftermarket Industry Association (AAIA), Tire Industry Association (TIA), and the Automotive Oil Change Association (AOCA).

The FTC Alert, entitled “Auto Warranties, Routine Maintenance and Repairs: Is Using the Dealer a Must?” was distributed in response to a letter sent by AAIA, TIA and AOCA charging that Honda had issued a release which appeared designed to give car owners the impression that their warranty right would be jeopardized if they used “aftermarket” parts. In its Aug. 25 letter to the FTC, AAIA charged that the Honda statement was “in direct conflict with the Magnuson-Moss statute,” which prohibits the conditioning of a warranty on the use of the manufacturer’s brand products.

AAIA also stated in the letter that statements made in the Honda release regarding the quality of non-Honda parts were misleading to consumers. ■

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Ludwig Report

Look for a renewed consumer focus on performance vs. price

G

asoline prices seem to be in2010, average costs for size 215/60R16 major brand tires were creasing again with prices for up 5% while selling prices were unchanged. The average costs regular north of $3 a gallon for a 215/60R16 private brand tire were up 7% while selling almost everywhere. While I do not prices were essentially flat for the month. In light of further expect driving levels to be meaningraw material cost increases, we expect manufacturers to again fully impacted anytime soon (unless increase prices soon. gasoline approaches $4 a gallon), you should cite higher gasoline prices as Pricing remained normal to firm a way to foster sales of fuel efficient In December 2010, 66% of the passenger tire dealers described tires. Those tires, now available from pricing as normal, 17% perceived pricing as aggressive, while most manufacturers, sell at a premium the remaining 17% of the passenger tire dealers thought pricbut with proper training (and maybe a By Saul Ludwig ing was firm. Conversely, 75% of truck tire dealers suggested spiff, too), your counter staff should be pricing was very firm, while the balance of the truck tire dealers able to convince the customer of the benefits of those (higher believed pricing was normal. We continue to expect that dealmargin to you) tires. During 2010 there was indeed some trading ers will likely see less discounting as manufacturers attempt down by cash-strapped consumers, but 2011 may see a renewed to raise prices. focus on performance vs. price. For 2011, most economists are projecting a stronger economy.

Additionally, 2010 was a strong year for the stock market, so consumers may soon be feeling Dealers AUG SEP OCT NOV(R) DEC(P) DEC(09) better about their own financial health than Passenger tire was the case last year. Strong Christmas sales Will improve 40% 67% 33% 17% 17% 38% were the most recent evidence of improving Will worsen 0% 0% 0% 50% 33% 8% consumer spending.

Will stay level 60% 33% 67% 33% 50% 54%

How dealers view their near-term business

Monthly survey A number of independent tire dealers were surveyed concerning current business trends.

Except for tire prices and costs, the results of the December 2010 survey are compared with those of December 2009.

Truck tire Will improve Will worsen Will stay level R-Revised

50% 0% 50%

40% 0% 60%

0% 0% 100%

0% 33% 67%

75% 25% 0%

11% 0% 9%

P-Preliminary

Truck tire inventories are too low Passenger tire dealers’ six-month outlook is mixed Roughly 50% of passenger tire dealers suspect business will remain the same in the next six months, 17% expect improvement, while the remaining 33% think business will worsen.

Conversely, 75% of all the truck tire dealers sense that in the next six months business will improve while 25% expect business to worsen. These outlook comments tend to be seasonally directed rather than year-to-year comparisons.

All tire sales were higher in December According to dealer reports, on average, retail sales of new replacement passenger tires were strong with many reporting as much as a 9% increase in December 2010 vs. December 2009.

Some dealers we surveyed noted that traffic was very good in December. Truck and retreaded tire sales were strong, increasing 8% and 13%, respectively, in December year-over-year.

Costs for major and private brand tires were up In comparing the month of December 2010 with November

16 MTD_10-17.indd 16

The survey suggests that passenger tire dealers view future demand with some degree of uncertainty because their view regarding tire inventories was equally split with about 33% believing they were either too high, too low or in line with business conditions. Conversely, all truck tire dealers feel inventories are too low.

Service revenues are up, dealers reported Dealers who provide automotive service reported that 50% of revenues, on average, were generated by service during December. Dealers indicated that service business was up over 12% in December 2010 vs. December 2009. Automoitve service business remained strong through most of 2010 for the surveyed dealers. â– Analyst Saul Ludwig is a managing director with Northcoast Research Holdings LLC based in Cleveland, Ohio. He concentrates on the tire and chemical industries. He has been writing for Modern Tire Dealer since April 1975.

MTD February 2011 4/26/11 11:27:34 AM

Quik-Link: 800-687-1557 ext. 12108

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4/26/11 11:27:39 AM

UHP tires

From cosmetic to tuner to... UHP?!

Rick Brennan explains the evolution and the overlapping in the performance segment

By Bob Ulrich

T

he top five UHP sizes don’t even fit sports cars. They fit sedans.” That telling comment from Rick Brennan, vice president of marketing for Kumho Tire U.S.A. Inc., speaks volumes about the evolution of the ultrahigh performance tire segment of the market.

Twenty-five years ago, there were four categories in the performance segment: ultra-high performance, high performance, performance and cosmetic. There were no touring tires, and winter tires were only known as snow tires. The all-season tire segment was calculated separately.

Today, there are no fewer than six categories, at least as they apply to traditional summer tires. For an apples-to-apples comparison of performance then and now, we will stick with tradition. Be aware that there is a lot of overlap between not only categories but also within segments (there are UHP winter tires, for example).

The Tire Rack breaks down summer passenger performance into extreme, max, ultra-high, high, grand touring and DOT track and competition. Tire Rack is credited with creating the max performance The tuner market in the 1990s changed the face of the UHP tire segment. category.

“Max is what UHP used to be in According to Tire Rack, extreme performance tires are designed 1985,” says Brennan, who refers to the present UHP category for customers who want extreme dry street performance and as more of a “value UHP.” Original equipment tires on sports are willing to trade some comfort and hydroplaning resistance cars such as the Porsche 911, or a Corvette or Ferrari are max to get it. “Extreme is pushing it way past normal,” says Brennan. performance tires.

“It is geared toward dry performance, for high horsepower cars Extreme performance is the latest addition to the summer that have the best of everything.”

UHP tire segment. These tires feature “race-like compounding,” Modern Tire Dealer recently sat down with Brennan to talk says Brennan. The Falken Azenis Sport RT-215 was one of the about his views on the evolution of performance tires in general, first extreme performance tires on the market. and UHP tires in particular.

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MTD February 2011 4/26/11 11:28:19 AM

Quik-Link: 800-687-1557 ext. 12109

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UHP tires “UHP used to define a segment. Now it defines a speed rating,” he says. “And that doesn’t mean anything to the consumer. That’s why you are seeing all these mini-segments cropping up.”

Appearance vs. performance In 1985, MTD defined a cosmetic performance tire as having no “speed” ratings (S- or higher). “They are less expensive than their respective performance counterparts, but have the look of performance-enhanced tires.

“Their construction and tread design features do not qualify them as true performance tires.”

An example of a cosmetic performance tire was the El Dorado Custom Stock 60-series bias brand. “There are many 70-, 65-, 60- and even 50-series, raised white letter tires in this category,” we wrote.

“The 75-series, white sidewall, all-season radials are not considered cosmetic performance tires. Neither are most of the 70-series, white sidewall tires of the same type.”

“Back in 1985, you could define UHP by the car, like the BMW M-Series or the Corvette,” says Brennan. “There were no more than 16 to 20 sizes, ranging from 195/50R15 up to 275/40R17.

“Cosmetic was still a performance tire, mostly 60 series, 15inch tires. A 1957 Chevy with the big tires on the back, or a 1962 Chevy Impala came with cosmetic performance tires on them.

They didn’t have great grip, but they were physically wide.”

Fast forward to the early 1990s, when the import tuner craze

High performance tire brand share, 2010 (High performance = 31.9 million units; UHP = 26 million units) Brand

HP

UHP

Goodyear

16.5%

15.5%

Michelin

12.0%

14.0%

Bridgestone

8.0%

9.5%

Yokohama

8.0%

5.0%

Kumho

6.5%

4.0%

Hankook

6.0%

5.0%

BFGoodrich

5.5%

5.5%

Falken

5.5%

8.5%

Toyo

5.0%

4.0%

Firestone

4.5%

3.5%

Dunlop

4.0%

4.5%

Nexen

4.0%

3.5%

Pirelli

3.5%

4.5%

Continental

3.0%

4.5%

Cooper

3.0%

2.5%

General

2.0%

1.5%

Nitto

1.5%

1.0%

Sumitomo

1.5%

1.5%

Fuzion

1.0%

1.0%

Wanli

1.0%

1.5%

Others

2.5%

2.0%

Because numbers are rounded to the nearest half-percent, the total may not equal 100%. Brands must have at least 1% of the total high performance tire market in shipment numbers to be listed at 1%.

Source: Modern Tire Dealer

started to take off. To tuner car owners, the look of the tire was much more important than its performance.

“Honda Civic owners wanted big wheels, so they started plus-sizing. They needed size 205/40R17 and 215/40R18 tires for the look they wanted, but nobody made those sizes in a cosmetic tire. They were only available in UHP sizes.”

The result, says Brennan, was that UHP tires became, for all intents and purposes, cosmetic tires.

Plus sizing led to an increase in shipments of larger sizes, first 225/40R18, then 215/35R19, then 225/30R20. At the same time, traditional V- and Z-rated UHP sizes were being offered with H ratings.

As the SKUs and shipments increased, so did the price range.

“In the early 1990s, the price point zone for UHP tires started to stretch,” says Brennan. “The top selling UHP size in 1985, 225/50R16, was sold to dealers for between $120 and $250. In 1995, that same tire size was sold anywhere from $55 to $250.

“That led to new technology, and the flagship tires evolved.

And the max performance category was created.”

20 MTD_18-25.indd 20

Quik-Link: 800-687-1557 ext. 12110

MTD February 2011 4/26/11 11:28:32 AM

Quik-Link: 800-687-1557 ext. 12111

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4/26/11 11:28:40 AM

UHP tires Brennan says he has seen a 205/40R17 tire manufactured in China sell for as low as $30 here in the U.S.

Turn of the century From 2001 through 2010, domestic shipments of high performance tires, defined as sizes H-rated and higher, 70-series and lower, have grown more than 130%. Ultra-high performance tires, in general V-rated sizes and higher, account for a significant part of that increase.

The UHP market segment has grown nearly 250% in the last 10 years, from 7.5 million units to 26 million.

Those numbers are a little misleading, says Brennan, because they are based solely on size and speed rating, not usage.

Vehicle evolution is partially responsible for the confusion.

At the same time plus sizes were be- The new Cooper Zeon RS3-S was previewed at both the 2010 SEMA Show ing developed for Cadillac Escalades, in Las Vegas and the recent 2011 K&M Tire Expo in Red Wing, Minn. It is a Ford Explorers and Toyota Camrys, max performance summer tire (pictured: size 235/50R18 97W).

22 MTD_18-25.indd 22

Quik-Link: 800-687-1557 ext. 12112

MTD February 2011 4/26/11 11:28:46 AM

Quik-Link: 800-687-1557 ext. 12113

MTD_18-25.indd 23

4/26/11 11:28:57 AM

UHP tires

As the broad-line tire market segment declines (top), others, including the UHP segment, trend upward.

technology for vehicle engines evolved. For example, the Ford Grenada in 1980 and the Toyota Camry in 2010 represent the same basic vehicle segment.

However, the OE tires on those vehicles are night and day different.

“The OE manufacturer has to put on a tire that’s equal to the capability of the vehicle, which might be 130 mph,” he says. “Eventually, you will see an 80,000-mile tire with a V-speed rating. So you see how the UHP segment has become so cloudy.”

The top five most popular UHP sizes are: 225/50R17, 215/55R17, 215/50R17, 215/60R16 and 225/45R17. The 225/50R17 can be found on not only police pursuit vehicles, but also the Ford Fusion!

The most popular “true” UHP tire is sixth on the list: 225/45R17, which fits on a Subaru WRX. Rounding out the top 10 are 235/55R17, 205/50R17, 205/60R16 and 215/45R17. There are 10 17-inch sizes in the top 20, but only one 15-inch size (195/55R15 at number 20).

Brennan says the UHP tire lines will continue to blur, because sports car sizes are either growing slowly or declining, and sedan sizes are getting larger.

“The vehicles that came with size 235/75R15 10 years ago are coming out with 17-inch versions now.

“Size 225/45R18 is going to continue to grow, as are 17-inch, 50- and 55-series tires. Eighteen- and 19-inch, 55-series sizes are growing as well, especially because they come on CUVs (crossover-utility vehicles).”

That doesn’t bode well for size proliferation, even though companies like Falken Tire Corp., Hankook Tire America Corp., Yokohama Tire Corp and Toyo Tire U.S.A. Corp. “have cut back on sizes like us. In some lines, the number of tire models we offer the same size in is increasing.

“Probably the biggest single issue is SKU count,” says Brennan. “And it’s not going to get any better.” ■

24 MTD_18-25.indd 24

MTD February 2011 4/26/11 11:29:02 AM

Quik-Link: 800-687-1557 ext. 12114

MTD_18-25.indd 25

4/26/11 11:29:15 AM

John Snider, left, accepts the 2010 Tire Dealer of the Year trophy from MTD Publisher Greg Smith.

MTD_26-30.indd 26

4/26/11 11:29:52 AM

Send in your Tire Dealer of the Year nomination today!

I

n addition to the industry recognition, the MTD Tire Dealer of the Year’s favorite charity will receive a minimum of $1,000 from MTD. The winner will also be featured on the cover of our September issue and spotlighted in a feature article. There is no higher honor a tire dealer can receive than joining the prestigious list of winners of Modern Tire Dealer’s Tire Dealer of the Year award.

In selecting MTD ’s Tire Dealer of the Year, judges will consider five elements: 1. Business Success 2. Marketing Skills 3. Management Skills 4. Industry Knowledge 5. Community Involvement Any independent tire dealer, except our previous winners, is eligible for the competition.

Content of nominations, not entry embellishments, will determine the winner, so keep entries factual and simple. Support material may be included, but is not mandatory.

To immediately nominate a dealer, log onto www.moderntiredealer.com and fill out our online nomination form. For more information, contact MTD Editor Bob Ulrich at bob.ulrich@ bobit.com.

Every Tire Dealer of the Year, including 2008 winner Ken Towery, left, chooses the charity that receives money donated by MTD and its advertisers.

MTD_26-30.indd 27

+;CF NII MFIQ 7IO_FF @CH> NB? HIGCH;NCIH @ILG IH IOL 5?< MCN? QQQ GI>?LHNCL?>?;F?L =IG

I nominate for Modern Tire Dealerâ&#x20AC;&#x2122;s Tire Dealer of the Year: Name ____________________________________________ Phone____________________ Dealership ________________ _________________________________________________ Address ___________________________________________ City ____________________________________ State _____ Zip Code ________________ Nominated by: Name ____________________________________________ Phone_____________________________________________ Relationship with nominee _____________________________ I believe this dealer should be considered because: ___________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ Mail to: Modern Tire Dealer of the Year, 3515 Massillon Road, Suite 350, Uniontown, OH 44685. Deadline for entries is June 3, 2011.

4/26/11 11:29:53 AM

UHP tire service

Times they are a-changin’ New tire mounting/balancing equipment eases service

By Lori L. Mavrigian

W

ith a nod to singer/songwriter Bob Dylan, the times are indeed changing for tire service. There are numerous new products on the market that make UHP tire demounting, mounting and balancing quicker and easier than ever before. “If you’re changing high performance tires and wheels, you can’t be doing it with the same old stuff,” succinctly states Pete Liebetreu, Hunter Engineering Co.’s product manager, tire changers. So here’s a rundown of some of the equipment suppliers’ latest offerings.

Leverless is more with tire changers Hunter Engineering Co.’s new Auto28 tire changer services all wheel designs from 10 to 28 inches in diameter safely and easily. “The Auto28, our latest tire changer, is the ‘little brother’ to our Auto34 tire changer,” says Liebetreu.

The Auto28 features a tool head design that automatically slips easily between the rim edge and tire sidewall and extracts the bead gently in one fluid down-and-up motion without the use of bead levers. This leverless system reduces potentially damaging stress on the bead and eases overall operation.

“The leverless head is quite thin where the tire passes over it. It doesn’t stretch the tire more than it needs to,” Liebetreu notes.

The powerful, high-torque electric motor exerts over 850 ft.-lbs. of torque to mount even the most stubborn beads. The variable-speed drive system gives the technician the ability to control the amount of force needed to service a wheel at the most efficient speed, while safeguarding against damage.

The center-support clamping table and self-centering quick clamp give the Auto28 the flexibility to easily mount a wide variety of wheel designs with the same clamping technique. The mount/demount rollers gently roll the tire off or on the rim. “It ‘worries’ the tire off the rim,” explains Liebetreu, taking extra care not to damage the wheel.

The bead press arm pushes and holds stiff sidewalls in the drop-center of a rim as the wheel rotates, greatly reducing the risk of bead damage.

The Auto28 also features a side-mounted bead loosener using a sideshovel design familiar to Hunter’s Auto28 tire changer’s most technicians and an tool head design automatical- optional wheel lift to help with heavy or expensive ly extracts the bead without wheel assemblies. the use of bead levers.

28 MTD_26-30.indd 28

Corghi USA offers an automatic, leverless tire changer, the A 2024LL. It uses a top bead demounting procedure with the same working movements as a manual demount using a tire lever, but it requires no effort from the operator thanks to the “leva la leva” technology incorporated in the mount/demount head, the company says.

The machine features pneumatic tilting and Corghi’s turntable system, which allows clamps to be moved to change the working range.

The A 2024LL also features an adjustable bead breaker arm, which moves to ensure that the working position is always perfect for the rim diameter. The bead breaker arm is supplied with a shoe extension system for use on large diameter wheels.

The A 2024LL tire changer is suitable for tires up to 14 inches wide and 43 inches in diameter and offers an inside clamping capacity of 13 to 26 inches and an outside clamping capacity of 10 to 24 inches.

Snap-on Equipment is offering the John Bean Pegasus ATC 800 Leverless tire changer designed to meet the needs of shops handling high volumes of wheels, particularly low-profile, run-flat and extended-mobility tires. “Its best-in-class design and features will improve safety and consistency while reducing technician fatigue and damage to wheels and tires when compared to tabletop tire changers,” the company notes.

The Pegasus ATC 800 is easy to operate with its laser-guided demounting process, in which a laser light assists the technician in setting the demount head in the optimal position for both mounting and demounting, and eliminates the chance of wheel damage during the process.

The Pegasus ATC 800’s demount head has no pivot points.

Once in position, the demount head efficiently lifts the sidewall from the wheel with no manual input and eliminates the need for a tire lever or for multiple technicians to assist when demounting tires. The Pegasus ATC 800’s bead breaker does not contact the wheel at any point in the process, providing what the company has termed “Do No Harm” performance.

Hennessy Industries Inc. is offering the Coates ProGuard Leverless tire changer developed specifically for handling oversized, run-flat and low profile tires, the company notes. It features a design that reduces the risk of tire or rim damage.

In addition to the leverless operation, the ProGuard Leverless tire changer has built-in features that take the strain out of tire changing. Lifting, prepping, bead loosening, mounting and demounting can all be done with easy-to-use controls from a single operator location. It features the Coats Leverless Power Duckhead Bead Lifter that eliminates traditional tire tools that can mar the tire’s surface due to application difficulty or operator error. It also has a highly intuitive and easy-to-use design that eliminates metal-to-metal contact, taking the tire bar out of the

MTD February 2011 4/26/11 11:29:54 AM

Quik-Link: 800-687-1557 ext. 12115

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UHP tire service operator’s hands and ensuring a controlled mount and demount process. During demounting, the leverless tool hooks the lip of the bead and effortlessly lifts it just above the rim. The tire then comes off the rim safely and easily with a simple rotation of the tabletop. Other features include a protective pedestal and center lock design, a built-in adjustable wheel lift, a bead loosener disc and tower, Robo-Arm helper device and a tilt back tool tower.

Additionally, the Coats 70-Series Rim Clamp tire changer recently got upgrades to increase its capability to handle

performance tires. “The additional functionality and improvements we’ve made to our workhorse machines for the tire retailer enable them to handle those high performance and UHP fitments down in the more average size range,” says Kevin Keefe, vice president, marketing.

Hennessy’s 1250-3DV tire balancer has a video display that helps less experienced operators complete many specialty operations.

Keeping it in balance Hennessy Industries’ Coats 1250 Series wheel balancer comes in three models – the 1250-2D, 1250-3D and 1250-3DV. They come equipped with 1.5 hp direct drive motors, eight balancing modes, and Laser-Guided Operation that eliminates error by pinpointing the exact Tape-AWeight placement and behind-the-spoke weight placement locations.

The company’s top model, the 12503DV, has a video display that is bright and durable and provides on-screen training while reinforcing proper balancing techniques.

Hunter Engineering’s Road Force GSP9700 tire balancer offers precise and accurate tire balancing, says Greg Meyer, product manager, balancers, which is especially important today because “vehicles are increasingly sensitive to imbalance,” he notes.

The Road Force GSP9700 eliminates tire and wheel vibration. Each tire/wheel assembly is tested for the amount of dynamic/static imbalance and road force. It simulates a “road test,” with a unique “load roller” which applies up to 1,400 pounds of force against the rotating assembly. The roller measures the loaded runout of the assembly and automatically recommends corrections when needed.

The GSP9700’s technology eliminates many of the time-consuming and often non-productive manual measurements previously used to diagnose and repair ride disturbance concerns. ■

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Quik-Link: 800-687-1557 ext. 12116

MTD February 2011 4/26/11 11:30:12 AM

Commercial Tire Dealer™

The chaotic world of OTR tires Global tire segment is extremely dependent on markets abroad

By Kevin Rohlwing

2008 dealer reported retail statistics — machines

E

dward Lorenz was a noted mathematician and meteorologist who pioneered the study of chaos theory. He determined that when complex systems were entirely dependent on initial conditions, such as the weather, even the smallest changes could yield dramatically different results in the end. His work has been used in the fields of physics, applied mathematics, economics, biology, psychology and meteorology, to name a few. But Lorenz is probably most famous for a paper he entitled, “Does the flap of a butterfly’s wings in Brazil set off a tornado in Texas?”

One only needs to look at recent weather patterns that have been attributed to global warming to witness the genius behind his work. When the initial conditions in a complex system are extremely sensitive, even the slightest shift will totally change the outcome.

Besides academics and other more intellectual pursuits, chaos theory can also be used to analyze the OTR tire industry. Unlike the passenger, light truck and medium truck tire markets where there are

By marketing region for the three-month rolling period compared to same months of prior year

Period ended

Asia/ Pacific

EAME

Latin America

ROW

North America

World

January

Up 16%

Up 21%

Up 50%

Up 25%

Down 13%

Up 7%

February

Up 11%

Up 18%

Up 43%

Up 20%

Down 15%

Up 4%

March

Up 10%

Up 14%

Up 14%

Up 13%

Down 20%

Down 1%

April

Up 19%

Up 21%

Up 15%

Up 19%

Down 18%

Up 2%

May

Up 24%

Up 9%

Up 11%

Up 13%

Down 17%

Down 1%

June

Up 31%

Up 12%

Up 23%

Up 18%

Down 15%

Up 2%

July

Up 28%

Flat

Up 18%

Up 9%

Down 13%

Down 1%

August

Up 32%

Down 2%

Up 23%

Up 10%

Down 18%

Down 3%

September

Up 32%

Down 4%

Up 34%

Up 11%

Down 13%

Up 1%

October

Up 16%

Down 9%

Up 35%

Up 5%

Down 12%

Down 2%

November

Up 5%

Down 15%

Up 18%

Down 3%

Down 11%

Down 6%

December

Down 13%

Down 20%

Up 11%

Down 12%

Down 21%

Down 15%

only a few applications and the products have almost reached the commodity stage, OTR tires remain highly specialized.

The engineering behind these complex tires continues 2007 dealer reported retail statistics — machines to evolve, and while there is tremendous competition By marketing region for the three-month rolling period in other aspects of the tire industry, the OTR segment compared to same months of prior year is relegated to only a handful of manufacturers with the Latin North Period Asia/ resources to build the largest tires on the planet.

ROW** America World ended Pacific EAME* America In order to better understand the relationship beJanuary Up 21% Up 27% Flat Up 20% Down 9% Up 4% tween supply and demand for OTR tires, the market February Up 10% Up 32% Up 1% Up 19% Down 10% Up 3% must first be divided into three categories: small, large March Up 20% Up 43% Up 25% Up 32% Down 15% Up 6% and giant.

April

Up 16%

Up 32%

Up 29%

Up 27%

Down 14%

Up 4%

May

Up 23%

Up 35%

Up 15%

Up 27%

Down 13%

Up 4%

June

Up 12%

Up 27%

Down 1%

Up 17%

Down 13%

Down 1%

July

Up 16%

Up 32%

Down 5%

Up 19%

Down 14%

Up 1%

August

Up 10%

Up 27%

Flat

Up 17%

Down 9%

Up 3%

September

Up 16%

Up 26%

Up 3%

Up 19%

Down 12%

Up 3%

October

Up 16%

Up 25%

Up 21%

Up 22%

Down 14%

Up 3.5%

November

Up 23%

Up 31%

Up 49%

Up 32%

Down 15%

Up 9%

December

Up 19%

Up 24%

Up 70%

Up 30%

Down 13%

Up 9%

* EAME = Europe, Africa and Middle East ** ROW = Rest of world All chart information provided by Catepillar Inc.

www.moderntiredealer.com MTD_31-39.indd 31

Market segments Small OTR tires are typically defined as those with 24- or 25-inch bead diameters that are primarily used on construction equipment such as small rubber-tire loaders and scrapers. When compared to the other segments in the OTR industry, there are definitely a lot more domestic and foreign manufacturers, so the likelihood of prolonged shortages is relatively small.

The large OTR tire market is primarily dedicated to quarry operations and mainly consists of tires with bead diam- Tire restoration: New type of shoulder repair could save money and time . . . 34

ALSO IN CTD

31 4/26/11 11:30:55 AM

OTR tire market 2009 dealer reported retail statistics — machines By marketing region for the three-month rolling period compared to same months of prior year Latin America ROW

North America World

Down 27%

Up 4%

Down 17%

Down 30%

Down 22%

Down 8%

Down 37%

Down 2%

Down 22%

Down 35%

Down 27%

March

Down 13%

Down 44%

Down 6%

Down 28%

Down 41%

Down 33%

April

Down 21%

Down 47%

Down 9%

Down 32%

Down 51%

Down 39%

May

Down 30%

Down 46%

Down 12%

Down 35%

Down 57%

Down 43%

June

Down 27%

Down 51%

Down 23%

Down 38%

Down 59%

Down 47%

July

Down 30%

Down 50%

Down 28%

Down 40%

Down 59%

Down 48%

August

Down 33%

Down 50%

Down 37%

Down 42%

Down 57%

Down 48%

September Down 40%

Down 55%

Down 41%

Down 47%

Down 60%

Down 52%

October

Down 36%

Down 53%

Down 41%

Down 45%

Down 58%

Down 50%

November

Down 31%

Down 53%

Down 27%

Down 40%

Down 54%

Down 45%

December

Down 12%

Down 41%

Down 24%

Down 28%

Down 46%

Down 35%

Period ended

Asia/ Pacific

EAME

January

Down 15%

February

to illustrate this relationship, dealer statistics from Caterpillar (the world’s largest heavy equipment manufacturer) for the past four years show how shifts in one part of the world can impact the global market.

For example, in 2007 the collective markets outside North America were up by as much as 32% in March and November. But the reduced demand on this continent brought the worldwide sales increases down to 6% and 9% for the same months.

The beginning of 2008 shows the same trend, where increased sales throughout the rest of the world were offset by decreases in North America. And by the time that the recession had a stranglehold on the global economy at the end of year, worldwide sales were down by 15% in December.

Everyone would like to forget 2009, and the dealer statistics from Caterpillar clearly demonstrate the economic downturn in every market. That trend more or less continued into the first half of 2010 until May, when the numbers started turning around. It’s also interesting to note that when North American sales experienced their first increase in more than three years, the decreases in Europe, Africa, the Middle East and Latin America were offset to actually increase the worldwide statistics. By the time November rolled around, the global market for heavy equipment had turned around faster than anyone could have forecasted.

Based on these figures, it’s fair to say that the market for new heavy equipment in North America represents another initial condition that contributes to the chaos.

eters that range from 33 inches to 49 inches. As the tire 2010 dealer reported retail statistics — machines sizes get larger, the number of manufacturers gets smaller, By marketing region for the three-month rolling period compared to same months of prior year so they are more susceptible to supply issues.

Latin North Asia/ Finally, the giant OTR tire segment is comprised of tires Period America ROW America World Pacific EAME with bead diameters of 51 to 63 inches that are used in large ended Up 1% Down Down Down Down Down mines. And as history has shown, the balance between January 35% 15% 19% 40% 27% supply and demand for these tires is extremely delicate February Down Down Down Down Down Down for a number of reasons that will be explained later.

2% 22% 20% 15% 30% 20% Unlike the passenger, light truck and medium truck tire March Up 11% Down Down Down Down Down industries, the OTR tire market can easily be described as 18% 15% 7% 21% 11% chaotic. Most of the passenger and light truck tires used April Up 13% Down Down Down Down Down in North America are produced in North America with 14% 10% 3% 5% 4% little reliance on overseas production. And since most of May Up 38% Down Down Up 9% Up 15% Up 11% that production stays on this continent, changes offshore 8% 2% typically do not have a major impact on our supply because June Up 36% Up 8% Up 18% Up 20% Up 26% Up 22% those markets have their own manufacturing plants.

July Up 41% Up 19% Up 32% Up 29% Up 38% Up 32% Likewise, the demand for passenger and light truck August Up 32% Up 26% Up 57% Up 35% Up 40% Up 37% tires overseas is primarily supplied by production closer to those regions, so changes in North America have little September Up 44% Up 40% Up 73% Up 49% Up 60% Up 53% Up 45% Up 40% Up 59% Up 46% Up 52% Up 48% effect on their supply. The same can be said for the medium October truck tire industry, although the current truck tire casing November Up 51% Up 43% Up 43% Up 46% Up 53% Up 48% shortage can be attributed in some part to the reduction December* * Not yet available in casing imports.

On the other hand, the OTR tire industry in North America is global in every sense of the word, so it is extremely In the next CTD section coming in April, we will continue dependent on the markets abroad. our look at OTR market conditions and tire production. ■ There are a number of initial conditions that affect the worldwide supply for all types of OTR tires, regardless of size. First and Kevin Rohlwing is senior vice president of training for the Tire foremost is the demand at the original equipment level. In order Industry Association (e-mail krohlwing@tireindustry.org).

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Quik-Link: 800-687-1557 ext. 12117

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4/26/11 11:31:01 AM

Tire repair

Tire restoration New type of shoulder repair could save money and time

By Kevin Rohlwing

and moisture cannot enter the casing which will lead to corrosion and, you guessed it, a separation. s it stands today, there are four types of repairs Finally, the innerliner of the tire must be sealed with in the commercial truck tire industry: puncture, a repair unit to prevent any further air loss. On puncture spot, reinforcement and section. repairs, this is accomplished by a universal or reinforced A puncture repair can be installed in the field and must repair unit.

Since the goal is to restore the original condition of the be located in the crown area of a truck tire, which is the center of the tread approximately 1 to 1.5 inches in from tire following a repair, there is universal agreement on the the edge of tread. Puncture repairs are also limited to a basic steps and guidelines for all types of repair. However, maximum of 3/8 of an inch in diameter. A spot repair is a one particular type of injury continues to be a problem for rubber-only repair on the outside of the tire where an area the truck tire service providers.

Puncture repairs are restricted to the crown area which of missing rubber is replaced without any damage to the body cables or belt wires. When a piece of rubber is miss- means simple “nail holes” in the shoulder must be treated ing and the casing is exposed or damaged without actually as section repairs. This results in a large number of tires penetrating the innerliner, a reinforcement repair may be and casings being permanently removed from service for installed. Finally, when the damage exceeds 3/8 of an inch a variety of reasons. or the injury is located in the shoulder or sidewall area, a First and foremost is the fact that a section repair cannot section repair is required. be installed in the field or on the side of the road. The tools A repair, by definition, restores the original condition and curing equipment are not readily available in a typical of the tire. In order to accomplish this, there are several commercial tire service facility, so these tires usually are criteria that must be met. sent to a retread plant. Then there is the issue of price. A First of all, the damage must be completely removed. section repair will cost the tire dealer anywhere from $30 Truck tires are a complex blend of rubber and steel cords, to $50. After the markup, the fleet can pay up to $70, which so when an object penetrates the belt package and body in many cases is almost the price of the casing. These two plies, the area surrounding the injury is initially weakened factors alone are often sufficient to scrap the tire. to some degree. Since each cord is actually wound like a Unfortunately, there are still a lot of tire dealers who ignore cable, when it breaks, the cable the industry-recommended will continue to unwind. As the practices for tire repair cables unwind, the area becomes when it comes to injuries even more unstable, which often in the shoulder. Their inleads to a separation. terpretation of crown area Another key step to restorencompasses the entire ing the original condition with tread surface, so standard puncture repair materials a proper tire repair is to fill the void with rubber. In the case of and procedures are used. puncture repairs, this is typically And while this practice accomplished by installing a cured typically stops the air leak rubber stem. The stem is coated Under current tire repair guidelines, this simple in the short term, the origiin cushion gum, which reacts puncture in the shoulder must be treated as a sec- nal condition of the tire is with the vulcanizing cement to tion repair, so it cannot be repaired in the field. not restored because the chemically cure, or bond, the edge of the repair unit is stem with the tire. located in an area of the tire that continuously flexes as the When puncture repairs are installed in a retread plant, tire rolls down the road. This often results in a failure because un-cured rubber may be used to fill the void with an extruder the flexing causes the edge of the repair unit to lift. gun. In these instances, the tire must be placed in a chamber to cure the rubber or the main components of vulcaniza- Mini-sections hybrid tion (time, temperature and pressure) can be applied with Bob Majewski, president of Sumerel Tire Service Inc. in a portable spotter.

Newport, Ky., has solved this problem by installing “miniIn either case, the end result is identical. The void left sections” that are a hybrid of the puncture and section by the penetrating object is filled with rubber so water repair processes.

A

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Quik-Link: 800-687-1557 ext. 12118

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Tire repair

When a 20 repair unit is installed to repair a puncture in the shoulder, the edge of the patch is positioned in the middle of the flex area on the sidewall.

When a simple puncture is located in the shoulder area, they remove the damage with a standard carbide cutter and fill the injury with a cured rubber stem. Then they install a larger repair unit so the edge extends beyond the flex area on the sidewall.

And while it doesn’t necessarily conform to the exact repair guidelines established by the truck tire manufacturers, Sumerel Tire has experienced tremendous success with these repairs.

“Most of our fleet customers are reluctant to add another $30 or $40 to the price of a retread for a section repair just because there is a puncture injury in the shoulder,” remarks Majewski.

“We got tired of scrapping perfectly good casings, so we started installing mini-sections to repair these tires.

“The damage can be properly removed with a carbide cutter and the cured rubber stem fills the void, so the repair unit on the inside of the tire became the only component that needed to change.

“By installing a larger repair unit that extends to the non-flex area on the lower sidewall, we avoid the problems associated with lifting when the edge rests squarely in the middle of the high flex area. Since there is the possibility that a pencil bulge may become evident on the sidewall of the tire after a minisection is installed in the shoulder and the tire is inflated, we

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install a blue triangle patch on the outside of the tire so law enforcement officials will know that the bulge is associated with a repair,” says Majewski.

“We’re able to save a lot of time by avoiding the labor-intensive process of installing a section repair so we can pass those savings on to our customers.”

The way I see it, there is no reason that this practice cannot be extended to the commercial tire service industry. Carbide cutters and cured rubber stems are already used on a daily basis, so larger repair units are the only new components that will be needed. And since most truck tire dealers do not have a supply of blue triangle patches to explain any pencil bulges in the sidewall, tire repairers need to add those as well. Of course, there are other factors that must be considered.

First, before installing a repair unit that extends from the shoulder to the non-flex area of the lower sidewall, the beads of

By installing a 24 repair unit to repair a puncture in the shoulder area, the edge of the patch extends beyond the flex area so it is not subjected to the constant flexing that will cause it to fail.

Quik-Link: 800-687-1557 ext. 12119

MTD February 2011 4/26/11 11:31:20 AM

the tire must be relaxed or the repair will bridge and eventually fail. On a well-lit spreader that positions the tire at the ideal working height, itâ&#x20AC;&#x2122;s not as difficult as it sounds. But when this practice is attempted on the side of the road, there are definitely some challenges that need to be overcome.

Second, technicians must be certain that the damage in the shoulder does not extend beyond the limits of standard puncture repair materials. The belt edge of a radial truck tire is an extremely sensitive area so any technician that installs one of these mini-sections must be positive that all of the damage has been removed.

But the most important factor that must be taken into account is the reality that mini-sections are not currently endorsed by any of the major tire or retread manufacturers.

Sumerel Tire has experienced success with these repairs, but that doesnâ&#x20AC;&#x2122;t translate into collective success for the rest of the industry. Their repair technicians are well-trained and they have all of the proper equipment to ensure that mini-sections fulfill the objective of restoring the original condition of the tire. Majewski will be the first to admit that every puncture in the shoulder cannot be handled in this manner. There are a lot of factors that must be taken into consideration, including the angle of the injury, the condition of the tire and the final application.

With skyrocketing natural rubber and oil prices, fleets are becoming more willing to accept a repair that falls outside the category of a simple puncture in the crown area. And since the average commercial tire dealer does not have the training, tools or equipment to perform full-blown section repairs in the field, the concept of mini-sections in the shoulder area has the potential to solve a number of problems for all of the parties involved.

However, at the present moment, neither the Rubber Manufacturers Association (RMA) nor the Tire Industry Association (TIA) recognizes these repairs, so they remain outside the mainstream.

While I cannot comment on the RMA position, I can say that TIA will follow the lead of the tire and retread manufacturers when it comes to the installation of mini-sections.

Unfortunately, the inherent risks that accompany all types of tire repair make engineering and legal departments reluctant to step outside the box. Without conclusive data that universally supports the practice of using a mini-section to repair a simple puncture in the shoulder

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of a radial truck tire, these injuries will continue to result in a section repair or a scrap tire. And since we know that at least one retreader is having success, I believe that the alternative of improperly repairing puncture injuries in the shoulder creates even more risk for everyone.

Regardless, the industry is changing at a rapid pace, so the pressure to keep tires and casings in service for as long as possible should be enough for RMA and the truck tire manufacturers to at least consider the possibility of gathering the necessary data so the industry has an answer one way or another. â&#x2013;

Quik-Link: 800-687-1557 ext. 12120

37 4/26/11 11:31:26 AM

Counter intelligence

The ‘Zat Method’ in practice Taking the positive approach proves profitable

B

ack in the “good ole days” when I began selling tires and service at the sales counter there was a popular saying — “Nobody walks.”

This was based on the idea that you probably had a tire in stock to fit the customer’s need.

If they were in the store, you should have been able to close the sale if you used the “famous

By Wayne Williams five steps to a tire sale.”

Today, consumers have much greater access to the latest, up-to-date information — Consumer Report, online publications, and, of course, online search engines such as Google, Yahoo, MSN, Bing and more. Many retailers I have spoken with have reported that customers are less inclined to buy when in the store, and often see the store as part of the search process. During these times of rapid change and transition, business as usual will not work!

It’s been my experience that employees are aware that change is necessary, and will look to management to point the way. If direction is not given, then employees will adapt as they see fit. This may or may not be in the best interests of the business. If management does not soon give the required new direction, before long, an “unmanaged” and perhaps “dysfunctional” pattern will become the new norm. You can’t hide from change, it must be managed!

service, so beware of the standard old approach and standard old answers when consumers are checking for information either on the phone or in person. Old answers don’t work, and some of them never did.

The following age-old reply is negative and lazy. It requires no creativity or thought. Have you ever heard this one: “I don’t have that tire”? Though it may be true, it’s not helpful, nor professional. A consumer can call any tire store and get that reply!

The fact is, a consumer can call a donut shop and get that answer: “I don’t have that tire.”

The answer that says, “I don’t have your tire, but I can get it,” is repeated daily in tire stores across the nation, more frequently now as a result of SKU proliferation, as mentioned earlier.

I’m going to suggest a method that I hinted at last month and that I have taught hundreds and hundreds of store personnel.

The concept is simple: Sincerely ask for information, and seek immediate confirmation of how the potential customer feels about your answers. I call it the “Zat Method.”

I used the following example last month: “I don’t currently have your tire size in stock. May I have your name and the best way to reach you? I’ll do some research and get back to you with a price and availability as soon as possible — no later than noon today. How’s Zat sound?”

That is a huge difference from, “I don’t have your tire, but I can get it.”

By asking, “May I have your name?” the sales person is making it personal. Offering “price and availability” and to The Zat Method “get back” to the customer, the sales person is demonstrating One of the key advantages of a local retailer has always a positive approach in assisting the customer. When you been personal service. Personal service means professional don’t have it, you’ve got to say something more than, “I don’t have it.”

As I stated earlier, the chances of an out-of-stock condition are greater now than ever for a variety of reasons. Reporting to customers your current inventory status is just counter-productive.

Next is “The Recital.” Equally as unprofessional as the “out-of-stock report” is, so is “The Recital.”

This is a result of our computer age.

The customer contacts a sales person that has positioned him or herself in front of the computer monitor and starts “reciting” what they are seeing on the screen.

On the phone it sounds particularly ridiculous, the sales person mumbling something like this: “Well, we don’t have the one you’re looking for... ahhh... well... wait a minute... yeah... we have one, but we don’t have any of the rears... well, maybe we could... ahhh... no, that’s not gonna’ work... we John Antrican, assistant manager at Free Service Tire & have the WhamBam 350, but they’re not on sale Auto Center in Kingsport, Tenn., makes it personal by offering Rick Hanson price and availability assistance. any longer... the rebate was over last week, I think...

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MTD February 2011 4/26/11 11:31:29 AM

wow... doesn’t look like we have a set of anything.” Then to the famous fall back, “I don’t have it, but I can get it.”

Of course it all sounds like needless rambling because that’s what it is. I have heard this over and over again as I have phoneshopped tire dealers. I don’t know if it’s worse on the phone or at the sales counter. At the counter the sales person is fixated on the monitor and mumbles without making eye contact.

The customer feels ignored or invisible. As the seconds turn into minutes, the customer’s confidence is lost, and so are the chances of a sale.

Out-of-stock conditions have always been a part of the retail tire business. With the explosion of additional SKU’s, the frequency of out-of-stock continues to increase, and better answers are required to provide good customer service. A confident answer or reply is required to earn the customer’s confidence, and their business.

Here are a few examples from the Zat Method: “Several tire manufacturers produce good quality tires at fair prices. Will you permit me to research price and availability, and contact you in a few hours? How’s Zat sound?”

Or how about: “Because we sell so many tires, we purchase directly from several of the largest distributors in the area. Can I get the best number at which to contact you, and I’ll see what’s available now? I’ll get back to you ASAP with my best deal.

How’s Zat sound?”

In each of these cases the sales person remains in charge of the conversation.

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It never ceases to amaze me how sales people can tell the customer what they “can’t do” or “don’t have,” and relinquish control of the presentation to the customer.

I was visiting a dealer just a few months ago. They have instructed their counter sales people not to quote prices on a particular global/national brand without first shopping the local market. They never quote a price without checking costs and selling prices in the surrounding marketplace.

This dealer is seeing sales increases during the current economic downturn. They are successful because they are managing the changes in the marketplace. They have managed change and have a disciplined sales team. They have trained for results and they are enjoying the results.

My “take-away,” closing comment is this: Don’t allow short, negative replies by you or your counter sales staff.

No more, “I don’t” or “I can’t.” It comes across as “I won’t” and “I’m lazy.”

Don’t let someone stare at the computer screen and mumble meaningless chatter; rather, take the positive approach: “It doesn’t appear that I have your size in stock at the moment.

Will you permit me to take your number and call you back momentarily with a price both for the tire and our complete price? We guarantee our prices. How’s Zat sound?” ■ Wayne Williams is president of ExCell Marketing Inc., a “counter intelligence” firm based in La Habra, Calif. He can be reached at excellmkting@gmail.com.

Quik-Link: 800-687-1557 ext. 12121

39 4/26/11 11:31:31 AM

Focus on industry

Surviving and thriving Kumho makes necessary changes in 2010

By Bob Ulrich

J

.H. Kim, CEO of Kumho Tire Co., once again stood before Kumho’s largest dealers in North America. One year ago at the 2010 dealer meeting, he addressed legitimate concerns about the company’s unstable financial position.

One year later, his tone was different, less urgent and more positive.

“Last year, I asked you to believe that we’d survive, and be here for you,” said Kim to the dealers attending the 2011 meeting in Cabo San Lucas, Mexico. “My prediction came true.”

It took dramatic changes at the parent company in 2010 to make it happen. A new agreement with South Korean labor unions improved production efficiencies. A reorganized management structure sped up decision making.

And the company reconfigured tire production at its eight factories — a move made necessary by the tariffs imposed on Chinese consumer tire imports in 2009. The result was increased supply to North America as the year went on.

“You will see improvements in 2011,” added Kim. Of all the moves made by Kumho in the last 16 months, perhaps none were as important as the restructuring of Kumho Tire U.S.A. Inc.’s distribution network by President J.B. Kim. “We took action to consolidate our distribution points,” said Armand Allaire, national vice president of sales. “We moved from five distribution centers to three.”

Kumho Tire U.S.A. was left with 1.6 million square feet of warehouse capacity in Rancho Cucamonga, Calif.; Chicago, Ill.; and Atlanta, Ga. However, it was able to improve fill rates by avoiding the cost of less-than-truckload shipments to dealers.

Modern Tire Dealer estimates Kumho’s worldwide tire sales were up 36% year-to-year in 2010, from $2.2 billion to $3 billion.

In the United States and Canada, they were up 28%.

Ultra-high performing Ecsta 4X When it becomes available in June or July, the Kumho Ecsta 4X will be the latest tire in the ever-evolving ultra-high performance all-season tire segment.

The tire, which eventually will replace the Ecsta ASX, was a long time in the making. Research on the next generation

ASX began in 2006. However, by the time the tire was ready to be marketed, it was obsolete.

Other tire companies already had replaced their UHP all-season tires with advanced products such as the Dunlop SP Sport Signature (W- and Y-rated), Yokohama Envigor (W-rated), Pirelli P Drew White, purchasing Zero Nero All Season, Con- manager for The Tire Rack, tiExtremeContact DWS, believes the new Kumho Goodyear Eagle F1 All Sea- Ecsta 4X ultra-high perforson and the Michelin Pilot mance all-season tire has Sport A/S Plus. Charles van “volume potential.”

Heusden, manager of training and product planning, said new Hankook and Toyo tires in that category are in development.

So Kumho started over. The company determined that the best tire in the segment was the Pirelli P Zero Nero All Season, and used it as the performance benchmark.

The Ecsta 4X features a unique asymmetrical tread design that the company says “delivers improved grip, cornering and braking in both wet and dry conditions and even in light snow.”

It will be available in 48 sizes, broken out as follows: 15 inch = 3, 16 inch = 7; 17 inch = 17, 18 inch = 14; 19 inch = 3 and 20 inch = 4.

The Ecsta 4X “is the main push for Kumho in 2011, especially in the middle of the year,” says Rick Brennan, Kumho’s vice president of marketing. The tire will be one of five Ecsta UHP lines (along with the LE Sport KU 39, SPT KU31, ASX KU21 and LX Platinum KU27) backed by Kumho’s new 25% Road Hazard Warranty. If the tire fails for any reason up to the 25% wear mark, Kumho will replace it for free.

Kumho also is re-introducing the LE Sport KU39 into the marketplace. It is designed for European sedans and sports cars. ■

Business and marketing strategies Kumho announces five changes in the U.S. In 2011, Kumho Tire U.S.A. Inc. will focus on the following: 1. a “client-centric” approach to business. “We will focus on our key retail and wholesale clients,” said Armand Allaire, national vice president of sales.

2. “eco-technology” in tire design. “The market is open to eco products, they just have to perform as well as regular products,” said Rick Brennan, vice president of marketing.

40 MTD_40-45.indd 40

3. sports marketing, rather than motorsports. “We will still do grassroots racing, and target the driving enthusiasts,” said Brennan.

4. brand awareness. “Internet presence is going to be more and more important to you,” said Brennan.

5. SmartWay certification. The company’s modified KLS02, KLD01 and KLT02 truck tires will have an “e” added to their designations; full product code changes also are being made.

MTD February 2011 4/26/11 11:32:07 AM

Quik-Link: 800-687-1557 ext. 12122

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4/26/11 11:32:16 AM

TPMS

New Frontier Nissan’s TPMS service requires a variety of tools SUBJECT VEHICLE: 2005-10 Nissan Frontier.

SENSOR IN TIRE? No (sensors/transmitters are installed in wheels).

RESET PROCEDURE? Yes (whenever an old sensor has been replaced).

SPECIAL TOOLS NEEDED? Yes (CONSULT-II and CONSULT-II CONVERTER, plus a Transmitter Activation Tool J-45295).

When the Nissan Frontier is moving at speeds of above 20 mph, its tire pressure monitoring system (TPMS) receives signals sent from the transmitter installed in each wheel and gives alarms when tire pressure levels drop.

When the system detects low inflation pressure or another unusual symptom, the warning light in the instrument cluster comes on.

If the system detects that air pressure has dropped to 28

42 MTD_40-45.indd 42

psi, it will sound a buzzer for 10 seconds and a “FLAT TIRE” warning message will appear.

To remove an old sensor, follow these steps: 1. Deflate the tire. Unscrew the transmitter retaining nut and allow the transmitter to fall into the tire.

2. Place the tire and wheel assembly on the tire changer and break both beads. Ensure that the transmitter remains at the bottom of the tire while breaking the bead.

3. Turn the tire so the valve hole is at the bottom. Lift the tire onto the turntable and position the valve hole 270 degrees from the mounting/demounting head.

4. Lubricate the tire well, and remove the top side of the tire.

MTD February 2011 4/26/11 11:32:22 AM

Reach inside the tire and remove the transmitter.

5. Remove the second side of the tire.

Now you’re ready to install the replacement sensor by following these steps: 1. Place the first side of the tire onto the rim.

2. Apply suitable silicone lubricant to the new seal. Install the seal on the sensor.

3. Mount the transmitter on the rim and tighten the nut to 49 in.-lbs.

4. Place the wheel on the tire machine’s turntable. Make

It is important to note that if a new sensor has been installed, it will be in “sleep mode.”

To wake up the sensor, you must follow these steps: 1. With the Transmitter Activation Tool ( J-45295) pushed against the front left transmitter, press the button for five seconds.

With the ignition switch in the ON position, the transmitter must be woken up.

2. When the vehicle’s Body Control Module (BCM) has finished assigning each tire ID, the BCM flashes the hazard warning lights and sends a flashing indicator status.

Make sure the low tire pressure warning light goes out after all of the transmitters have been woken up.

Here’s how you perform the ID registration process with the CONSULT-II and CONSULT-II CONVERTER:

Figure 1: positioning tire on turntable.

1. With the ignition in the OFF position, connect the CONSULT-II and the CONSULT-II CONVERTER to the Data Link Connector (DLC).

2. Turn the ignition to the ON position.

3. Select “START (NISSAN BASED VHCL).”

4. Touch “BCM” on the “SELECT SYSTEM” screen.

5. Select “AIR PRESSURE MONITOR” on the “SELECT WORK ITEM” screen.

6. Select “WORK SUPPORT” on the “SELECT DIAG MODE” screen, and then select “ID REGIST.” 7. With the Transmitter Activation Tool ( J-45295) pushed against the front left transmitter tire air valve, press the button for five seconds.

8. Register the IDs in the specified order, starting with front left, and then moving to (in order) front right, rear right and rear left. When ID registration of each wheel position has been completed, a buzzer will sound and the vehicle’s hazard lights will flash. ■

Information for this column comes from Mitchell 1’s ”Tire Pressure Monitoring Systems Guide” for domestic and import vehicles through 2010. For more information, visit the company’s Web Figure 2: removing and installing tire pressure transmitter site at www.mitchell1.com. Also, Modern Tire Dealer’s Web site, www.moderntiredealer.com, has years of archived TPMS sure that the transmitter is 270 degrees from the mounting/ columns available in the menu bar’s “Articles” section (click TPMS).

demounting head.

5. Lubricate the tire. Install the second side of the tire.

6. Inflate the tire and balance the tire/ wheel assembly.

At this point, you may proceed with registering the new tire pressure sensor.

Brief CONSULTation Whenever a spare tire is mounted or a tire pressure sensor has been replaced, the new sensor must be registered. A Nissan CONSULT-II and CONSULT-II CONVERTER must be used to register the new sensor.

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Quik-Link: 800-687-1557 ext. 12123

43 4/26/11 11:32:25 AM

Products AutoEnginuity ScanTool 9.0

AutoEnginuity has released its ScanTool 9.0 for the Windows platform. The ScanTool 9.0 vehicle diagnostics system introduces the 10MY coverage for supported vehicle manufacturers. Included is enhanced coverage for the GM Global A models such as the Camaro. Also new is the graphing support for the Ford CAN Power Balance feature. This version also has an updated graphical user interface with data logging playback to allow the entire file to be loaded without requiring playback; new higher resolution bitmaps and icons; and support for closing the application without requiring a disconnect from the vehicle.

AUTOENGINUITY LLC Quik-Link: (800) 687-1557, ext. 12170 www.mtdquiklink.com/12170

BKT adds off-highway tire sizes

BKT Tires USA Inc. is offering new sizes in its lineup of off-highway tires. The company’s MultiMax MP 513 radial multi-purpose tire is now available is size 425/55R17 134 G. Its applications include telescopic handlers, backhoes and utility trailers. The TR 135 tractor tire for sprayers, harvesting and cultivation is now available in size 12.4-38. BKT’s TF 8181 front tractor tire now comes in sizes 10.00-16 and 11.00-16. Its Farm 2000 tire is now available in size 250/80-16 for trailer implements, small tractors and multi-purpose trucks, and the AgriMax RT 955 radial for row crops is now available in size 270/95 R 54 to replace size 11.2 R 54.

BKT TIRES USA INC. Quik-Link: (800) 687-1557, ext. 12173 www.mtdquiklink.com/12173

ANCO Winter Blades

Monroe OESpectrum shocks and struts

Tenneco Inc. has introduced an extensive line of advancedtechnology replacement shock absorbers and struts engineered specifically for foreign-nameplate vehicles. Monroe OESpectrum units provide handling precision and control while filtering out the ride harshness commonly encountered on many foreignnameplate applications. This blend of control and comfort is made possible through an internal damping control technology first developed for leading global vehicle manufacturers, the company reports. Monroe OESpectrum shocks and struts utilize Tenneco’s “Twin Technology Active Control System,” consisting of its latest Impact Control Valve, which delivers exceptional control under virtually all driving conditions, and a patented Low Speed Tunability piston design that isolates impact-related noise, vibration and harshness.

TENNECO INC. Quik-Link: (800) 687-1557, ext. 12171 www.mtdquiklink.com/12171

V-Tec wheels

Vision Wheel’s new V-Tec wheels go anywhere over any terrain on any type of light truck or SUV, the company says. Both the twin-spoke 394 Wizard and five-spoke 395 Warlord provide a powerful look and feel that complements the strength of any type of light truck or SUV, says Vision Wheel. Both wheels are available in an open lug design or the clean look of the optional covered cap style. The V-Tec wheels are available in 17- to 22-inch sizes in chrome, matte black and matte black machined finish, the company adds.

VISION WHEEL Quik-Link: (800) 687-1557, ext. 12172 www.mtdquiklink.com/12172

44 MTD_40-45.indd 44

Federal-Mogul Corp. has introduced a line of ANCO Winter Blades for vehicles fitted with original equipment profile-type wipers. ANCO Winter Blades feature Federal-Mogul’s exclusive, extra-thick DuraKlear natural rubber wiping edge, which remains flexible in cold temperatures to provide a consistent, streakfree wipe. These blades also include a rugged rubber boot that protects the heavy-duty steel frame from ice and corrosive materials. ANCO Winter Blades fit all major OE connection systems, which minimizes SKU requirements. Each blade is shipped complete with easy-to-use installation adaptors that cover virtually any application originally equipped with profile-type wipers. ANCO Winter Blades are available in 18-, 20-, 22-, and 24-inch lengths for profile blade-equipped vehicles. They are available for a full range of foreignnameplate and domestic applications.

FEDERAL-MOGUL CORP. Quik-Link: (800) 687-1557, ext. 12174 www.mtdquiklink.com/12174

Federal-Mogul ceramic disk brake pads

Federal-Mogul has introduced Wagner ThermoQuiet Ceramic disc brake pad sets for the 2010 Hyundai Azera, 2009-2011 Hyundai Sonata and 2010 Kia Soul (rear); 2010 Hyundai Tucson (front); and 2005-2008 Cadillac XLR and 2006-2008 Chevrolet Corvette (rear). They combine the two technological benefits — FederalMogul’s Integrally Molded Insulator (IMI) one-piece brake pad and Wagner EDGE Laser-Shaped Friction designs.

FEDERAL-MOGUL CORP. Quik-Link: (800) 687-1557, ext. 12175 www.mtdquiklink.com/12175

RTI offers four-tire nitrogen inflation system

RTI Technologies’ NitroPRO NTF-230 nitrogen tire inflation system offers shops a fast four-tire inflation time. The unit’s membrane technology can generate up to 98% nitrogen purity, and provides consistent nitrogen purity generation over the life of the membrane. The membrane technology requires no moving parts to generate nitrogen, making maintenance fast and easy.

RTI’s filter technology also provides 99.9% efficiency in water and oil separation. The compact NitroPRO NTF-230 requires just 24 x 24 inches of floor space and has a low overall unit height.

RTI TECHNOLOGIES INC. Quik-Link: (800) 687-1557, ext. 12176 www.mtdquiklink.com/12176

MTD February 2011 4/26/11 11:32:27 AM

Quik-Link: 800-687-1557 ext. 12124

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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.

Page

800-687-1557 + Toll Free Extension

Atturo Tire Corporation

22

12112

www.mtdquiklink.com/12112

Autopromotec

23

12113

www.mtdquiklink.com/12113

Bartec USA

43

12123

www.mtdquiklink.com/12123

Bee Line Company

36

12119

www.mtdquiklink.com/12119

BKT Tires, North America

10

12105

www.mtdquiklink.com/12105

Continental Tire the Americas LLC

19

12109

www.mtdquiklink.com/12109

Cooper Tire

7

12103

www.mtdquiklink.com/12103

Cornerstone Powered by ASA/Bridgestone

IFC

12101

www.mtdquiklink.com/12101

Dealer Strategic Planning Inc.

41

12122

www.mtdquiklink.com/12122

EcoExpress Tire Centers

21

12111

www.mtdquiklink.com/12111

Greenball Corporation

37

12120

www.mtdquiklink.com/12120

Hennessy Industries Inc.

29

12115

www.mtdquiklink.com/12115

Hunter Engineering Company

30

12116

www.mtdquiklink.com/12116

Identifix

39

12121

www.mtdquiklink.com/12121

Kenda USA

IBC

12125

www.mtdquiklink.com/12125

Kumho Tire USA

5

12102

www.mtdquiklink.com/12102

Marangoni Tread North America Inc.

35

12118

www.mtdquiklink.com/12118

Maxxis International—USA

33

12117

www.mtdquiklink.com/12117

Michelin North America Inc.

9

12104

www.mtdquiklink.com/12104

Motorcraft

11

Nexen Tire America Inc.

13

12106

www.mtdquiklink.com/12106

Nitto Tire U.S.A. Inc.

45

12124

www.mtdquiklink.com/12124

Pathway Polymers/TyrFil

20

12110

www.mtdquiklink.com/12110

Sentaida International Inc.

15

12107

www.mtdquiklink.com/12107

Sumitomo Tire

25

12114

www.mtdquiklink.com/12114

Tire Centers LLC

OBC

12126

www.mtdquiklink.com/12126

Yokohama Tire Corporation

17

12108

www.mtdquiklink.com/12108

Advertiser

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Web site

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www.moderntiredealer.com MTD_46-50.indd 49

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MTD February 2011 4/26/11 11:33:42 AM

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Quik-Link: 800-687-1557 ext. 12126

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