Modern Tire Dealer - September 2022

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September 2022 | Vol. 103, No. 9 | $10 | www.moderntiredealer.com WHAT’S NEW IN THEALIGNMENTEQUIPMENTLATESTONTIREPRICING WITH THE BEST PEOPLE, ‘YOU’LL NEVER LOSE’ BOB DUNLAP IS OUR TIRE DEALER OF THE YEAR

What motivates electric vehicle customers?

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Why consumer tire demand continues to decline TEN Insights

Understanding ‘why’ will help you win their trust and business Focus on Dealers

Turn-around artist

Bob Dunlap is an empathetic team leader and MTD’s Tire Dealer of the Year

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Relevant statistics from an industry in constant motion Your Marketplace

60 Goodyear and Cooper — what’s next for dealers?

How to handle customers who want help ‘right now’

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September 2022, Volume 103,

Dealers will continue to play key role in brand’s growth Focus on Dealers

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Market is still absorbing price increases

A blip and then a dip

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Dunlap & Kyle continues to grow under Bob Dunlap’s leadership.

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Analyst John Healy discusses brands, availability and more

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SRNA is focusing on Falken

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84 TPMS 90 Ad index ON THE COVER: BOB DUNLAP OF DUNLAP & KYLE. PHOTOGRAPHY BY JOEY BRENT

66 What’s new in alignment equipment?

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20 With the best people, ‘you’ll never lose’

Bob Dunlap, the chairman and CEO of Dunlap & Kyle Co. Inc., is MTD’s Tire Dealer of the Year. Find out why, starting on page 20.

Expert says future tire pricing will be tough to predict Numbers That Count

ESG in the tire industry explained

At 32, Steve Towers is an ‘old hand’ at bringing stores up to speed

Dealer caught in price-inventory asks for

Make sure you provide options and some empathy EV Intelligence

Using data to spot trends in your business

Why environmental, social and governance measurements aren’t going away Business Insight

Encourage your people to dig deeper Mergers and Acquisitions

‘We need some help’

‘pickle’

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“All of the excess money” doled out to people during the COVID19 pandemic “has dried up. And with inflation, people don’t have as much disposable income anyway.

MTD September 20224

“Sellout is down. Among the people I’ve talked to, I’m hearing it’s down between 6% and 8% over the last two months. But we can’t afford to be down because of our cost structure.

After a pause, he mentioned various things. And more assistance from tire manufacturers topped the list.

“You need to offer intangibles. You have dealers all across the country who do it right and add value to the transaction.

Despite high prices and inventory levels, the dealer told me his business continues to move plenty of units for its suppliers, all of whom he likes and respects.

“The suppliers need us to sell and deliver their tires. They need us to bolt tires on.

“We need some help to keep our margins up and keep our busi ness and other independent tire dealers healthy for the future.” ■

Mike MangesBy

Editorial

Theoretically, the scrambling baserunner should never win in a pickle. Most don’t.

“Just imagine if I’m sitting on top of $1 million of inventory — which is not much these days — and how much more cash it takes just to operate. That’s a huge, huge cost, especially for independents who are trying to stand on their own.

“Inventoriesalone.areat record highs — both dollars and units,” he told“Allme.the price increases that have happened over the last few years have just compounded the situation. A tire today is 30% more expensive than what it was even a year-and-a-half ago.

“We need some help to keep our margins up and keep our business and other independent tire dealers healthy for the future.”

DEALER CAUGHT IN PRICE-INVENTORY ‘PICKLE’ ASKS FOR RELIEF

But the independent dealer, he told me, plays a pivotal role in making that success happen, which should always be top-of-mind.

“We need more support for the independent channel and the people who have helped (suppliers) build their brands.

Like a desperate ballplayer stuck between second and third base, his multi-location dealership — which also does some wholesaling — has been ping-ponging back and forth between high inventories and escalating tire prices.

That help starts with understanding the value that independent tire dealers deliver to suppliers, he said.

“We don’t have bottomless pockets and neither do our custom ers,” he continued.

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Photo: MTD

I asked the dealer, “What can be done to help? What would you like to see?”

Ever feel like you and your business are in a similar position? An independent tire dealer whom I’ve known for many years — and who requested anonymity — recently admitted to me that he does.

“Sometimes they see us as someone who’s just selling tires. But we’re the ones who market their products. Do they think consumers come in asking for a specific brand?

“We have to be profitable.” But with all of the previously mentioned factors in play, “there’s not much of a gap right now,” he said.

If you have any questions or comments, please email me at mmanges@10missions.com.

“We’re the ones who go the extra mile. We’re the ones who are investing in their future. We’re helping them a whole lot more than they“Itrealize.can’tbe all about quantity. It has to be about the value you add as a dealer.

“Our personnel costs have gone up. Imagine you’re a dealer who’s having all these things happen, yet also are dealing with a drop in business.

“If I bought tires at a certain price three months ago, I need to be protected on that inventory because I made the commitment at a higher price.”

After all, he fully understands that tire manufacturers also have to make a profit. He wants them to be as successful as possible.

‘We need some help’

“Think about how much it costs to run trucks right now. Think about the cost of equipment.

ver see a runner caught between two bases during a baseball game? The situation is called a “pickle” and the goal of the runner who finds himself in this tough spot is to make it safely to the nearest base without being tagged or thrown out. The opposing players on either side of him apply pressure to stop this from happening.

At the same time, he says he’s watched some competitors snag better sell-in deals on products that he already committed to buying at higherThrowprices.inafew other factors — such as inflation and a recent slump in tire demand — and his business is feeling the squeeze. I suspect he isn’t

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The tire industry can serve as a year-round lesson in mergers and acquisitions, but once a year at Modern Tire Dealer all those deals converge into a single piece of re search — the MTD 100. The 2022 edition of the list of the nation’s largest independent tire dealerships was published in July and it has continued to dominate the news cycle here at MTD. Tire dealers are following every move their competitors make.

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DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER

1. MTD 100: Six gone, a new ‘number one’ and more Tire Discounters acquires car wash chain Retail sellout continues to decline MTD 100: Fast facts from this year’s list MTD 100 provides exclusive look at top dealerships Small mistakes can add up to big losses Bridgestone to install IntelliTire monitoring at 200 Pilot Truck Stops Mavis acquires Melvin’s Tire Pros in Rhode Island RoboTire installs system at First Discount Tire outlet Meet a dealmaker: Sun Auto’s Garman talks M&A strategy MN 55104-1804. tributed

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MTD September 20226

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Editor:EDITORIALMike Manges, ext. 2213 mmanges@endeavorb2b.com

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Like many dealers, tire manufacturers, he believes, “are reacting to the data that keeps coming out in the marketplace. A good example is the volatility in the oil markets. Prices increased and then decreased fairly rapidly. I think with a lot of consumer goods, it’s di cult to have a long-term pricing strategy.”

“And when we look at the mid-tier, those (products) trended at a 6.5% increase” during the same period.

Industry News

Photo: Fitment Group

Mountain $197.59 $246.65 $259.24 $262.21

“I think third and fourth quarter in ation data will be very telling,” says JP Brooks, director of business development, Fitment Group.

He says pricing will be somewhat di cult to predict during the rest of 2022 due to several factors.

“Whenmonitors.welook at all of the regions put together, we do see a fairly consistent trend line over the past seven months. ere weren’t a lot of spikes, even though the average price might be more in speci c markets.

One region of the country that has some “of the highest average tire prices right now is

South Atlantic $185.76 $237.63 $253.91 $263.19

Region priceOpeningpoint Value Better Best

Market is still absorbing price increases

Brooks is the director of business development for Fitment Group, a Duluth, Minn.-based company that analyzes millions of passenger and light truck tire prices each week — pulled from independent tire dealerships, tire manufacturer-owned stores, big box retailers and e-commerce portals.

Fitment Group tracks consumer tire pricing trends by tier.

MTD September 20228

ese costs factor into the overall equation, says Brooks.

“It takes some time for those increases” to be passed along to tire buyers, he says.

COURTESY FITMENT GROUP

ast year, there were more than 40 publicly announced price increases by tire manufacturers. Fewer price hikes have been announced this year. is doesn’t mean more increases aren’t on the way. But retail tire pricing expert JP Brooks says the market still needs to absorb recently announced price hikes. And that doesn’t happen overnight

“If we look at what we call the opening price point tier, that’s been slightly lower at an 8.5% increase over the past seven months.

“Recent economic data has shown the in ation rate to be 8.5% for the previous 12 months.”

Tire price hikes “are following along the lines of the other in ationary numbers we’re seeing. ey’re following a consistent trend line.”

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“If a company announces that a price increase will go into e ect on Aug. 1, those prices aren’t instantly re ected in the market on Aug. 2. We could start feeling those in October or even November.”

“ e in ation rate for the U.S. has ticked down. We’re seeing a slight stabilization of in ation, but it’s too early to say that we’re moving in the right direction. e next in ation update is scheduled to be released in mid-September.”

New England $176.49 $233.74 $258.27 $270.81

e East Coast and West Coast regions are the “most competitive” and volatile, according to Fitment Group research.

“Looking at price trend data — which are advertised prices — over the past seven months, the premium or what we call the ‘best’ category has increased in price the most” and has climbed 9.3%.

the Mountain Region,” which consists of Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming.

“When we compare the two coasts, we see that the West Coast trends higher in retail tire prices. California has some of the highest cost of living, from housing expenses to gas prices to even college tuition — even when compared to major cities on the East Coast. What we’re also looking at are tires coming in through the West Coast and then the transportation costs to move them over” to adjacent states or across the country.

EXPERT SAYS FUTURE TIRE PRICING WILL BE TOUGH TO PREDICT

is also includes pricing in the nine U.S. regions — East North Central, East South Central, Middle Atlantic, Mountain, New England, Paci c, South Atlantic, West North Central and West South Central — that Fitment Group

Pricing by Region (as of Sept. 1, 2022)

Middle Atlantic $178.77 $233.23 $254.35 $268.04

Looking ahead, he believes that the “rate of tire manufacturers publicly stating price increases will stay at as we wind down the rest of the year.

Paci c $194.19 $243.44 $257.97 $261.04

East North Central $188.43 $235.04 $255.01 $264.99

West South Central $190.46 $238.00 $253.97 $259.27

East South Central $189.31 $237.85 $259.66 $271.04

West North Central $196.26 $238.13 $255.51 $262.17

“It’s going to take some time for (recently implemented) increases to be presented as retail tire prices to the consumer.

at’s a 2.1% jump from the total passenger, light truck and medium truck tire shipments the association reported last year — both replacement and original equipment.

David panyjoinednewAmericaHighwayYokohamaGeraghty,Off-TiresInc.’spresident,thecom-lastyear.

Yokohama Off-Highway names Geraghty president

Rhoades has been with BKT since 2015 and has spearheaded the company’s OTR tire-related e orts. Rhoades will report to Kershaw and Minoo Mehta.

Kershaw joined BKT in 2018 and has played a key role in enhancing the company’s distribution capabilities in the United States, while expanding BKT’s presence in the agricultural, mining and construction sectors. He was promoted to head of BKT USA this past January.

alkrishna Industries Ltd. (BKT) has named Doug Kershaw president of its BKT USA unit. Chris Rhoades has been promoted to vice president, OTR business, BKT USA.

Since joining the company in August 2021, he has been instrumental in deepening its relationships with OEMs and starting its assembly business from the ground up.

Omni names R&D chief

Bites

Shrikant Gadge has been assigned additional responsibility as manager, sales and marketing, for BKT in Canada. He will report to Rajiv Poddar, joint managing director, BKT.

Mehta will continue to serve as BKT USA senior advisor and a member of BKT’s managing committee.

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Photo: AmericaOff-HighwayYokohamaTires

CMA LLC/Double Coin has named Aaron Murphy senior vice president, marking his return to the company, where he served as vice president from 2005 through 2015. Longtime CMA/Double Coin Senior Vice President Walt Weller retired on July 31.

BKT names Kershaw president, announces other promotions

Prinx names new president

MTD September 202210

e USTMA believes that 39.2 million OE passenger tire units, 5.9 million OE light truck tire units and 6.4 million OE truck tire units will be shipped in the U.S. this year. is will represent an increase of 4.8%, 4.8% and 7.8%, respectively.

Doug Kershaw has played a key role in enhancing BKT’s distribution in the U.S.

TBC Brands LLC has expanded its Carlisle, Pa., regional distribution center. The 208,000-square-foot expansion will enable the warehouse to hold 175,000 additional tires. Construction of the retro t began this past June and was recently completed.

ATD hires Target exec

Thirty-year tire industry veteran Samuel Felberbaum is the new president of Prinx Chengshan Tire North America. Prior to joining Prinx, he worked for Toyo Tire U.S.A. Corp. and before that, Michelin North America Inc.

Mavis Tire Express Services Corp. has acquired Melvin’s Tire Pros & Auto Service Centers, a ve-store dealership based in North Kingston, R.I. The stores will operate under the Melvin’s by Mavis name. The acquisition gives Mavis more than 1,150 tire outlets, according to MTD estimates.

TBC expands D/C

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Prior to his new appointment, Geraghty was global head of Yokohama O -Highway Tires’ OE and assembly business.

he U.S. Tire Manufacturers Association (USTMA) projects that passenger, light truck and medium truck tire shipments in the United States will total 342.1 million units this year.

Photo: BKT

TBC Corp. has named former Continental Tire the Americas LLC and Marangoni Tread North America executive Clif Armstrong director of commercial sales. In his new role, Armstrong will lead all efforts surrounding the growth of TBC Brands LLC’s commercial tire business.

American Tire Distributors Inc. (ATD) has named Moid Alwy its chief supply chain of cer. Prior to joining ATD, he spent nearly 20 years at Target, where he was vice president of global supply chain and logistics.

avid Geraghty is the new president of Yokohama O -Highway Tires Inc. He replaces Dhaval Nanavati, who has le the company.

In the replacement channel, the association predicts that 226.8 million passenger tire units will be shipped, a 0.9% increase over 2021 levels. It also believes that 39.5 million replacement light truck tires will be shipped, a 2.3% increase from last year, and 24.3 million replacement truck tire units will be shipped, a 6.5% jump from 2021.

Mavis acquires Melvin’s

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Omni United has named Olli Seppala the global head of its research and development department. Seppala most recently served as global head of research and development for Nokian Tyres plc.

In a related move, Alan Eskow, vice president of BKT Canada, has been named vice president, agri-industrial business, BKT USA. He will continue to manage the company’s original equipment sales in Canada and will report to Kershaw and Mehta.

CMA appoints Murphy VP

Clif Armstrong joins TBC

USTMA predicts record year for shipments

Industry News

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Sturdy and resistant, reliable and safe, able to combine comfort and high performance.

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WHEREVER YOU ARE, BKT IS WITH YOU

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A LONG TOGETHERWAY

Autel unveils remote platform

Tire Discounters Inc. has entered the car wash business by acquiring Carriage House Car Wash, a seven-location chain based in the tire dealership’s hometown of Cincinnati, Ohio. Tire Discounters wants to have a total of 20 Carriage House locations within the next two years.

Photo: Pit Stop Auto Repair

According to a statement from Goodyear, the overall plan will result in “approximately 490 job reductions” and is “in line with previously announced planned synergies, costs to achieve and cash rationalization payment estimates.”

“The closure of these warehouses is part of a larger, previously announced plan for the company to achieve synergies with the acquisition of Cooper Tire,” a Goodyear spokesperson told MTD.

Bites

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The 7,200-square-foot, 10-bay store — which opened 52 years ago — is in a rapidly growing, high-traffic area and “sits within our current footprint,” says Joe Ramsay, Pit Stop Auto Repair’s owner and president.

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Pit Stop Auto Repair buys Florida-based dealership

Performance Plus Tire, a dealership with locations in Long Beach, Calif., and Oak Ridge, Tenn., will be the official distributor of Kontio WhitePaw Classic whitewall tires in the United States. The products are made by Kontio Tyres, which is headquartered in Finland.

Tiremakers, USW agree

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Another Pit Stop Auto Repair location is currently under construction.

Goodyear to close ‘redundant’ Cooper warehouses

Continental, UTI team up

Tire Discounters buys chain

Discount uses RoboTire

RoboTire has installed its first automated tire mounting system at a Discount Tire store in Fountain Hills, Ariz. “We are excited to be the first to market in our space with RoboTire’s technology,” says Tom Williams, Discount Tire’s chief experience officer.

Kontio comes to the U.S.

Sun Auto Tire & Service Inc. recently opened a Sun Auto Tire store in Las Vegas, Nev., and a Goodguys Tire & Auto store in Visalia, Calif. Sun Auto acquired Goodguys Tire & Auto, which was based in Fresno, Calif., in April 2021.

Autel has introduced a Remote Expert platform that will connect technicians with diagnosticians and system experts when they need extra help. The platform works with Autel’s MaxiSYS Ultra, MS919 and MS909 tablets.

oodyear Tire & Rubber Co. says it has “approved a plan” aimed at “reducing duplicative global administrative headcount and closing redundant Cooper Tire warehouse locations.”

Bridgestone Americas Inc., Michelin North America Inc. and Goodyear Tire & Rubber Co. have ratified new labor agreements with the United Steelworkers. The agreements cover six Bridgestone plants, two Michelin plants and four Goodyear factories.

CMA adds Ozka brand ag, OTR tires

Last year, Ramsay told MTD that he plans to extend Pit Stop Auto Repair’s footprint into other parts of Florida.

Micky Franklin’s Tire & Auto in North Fort Myers, Fla., has 10 bays. The dealership opened 52 years ago. It was recently acquired by Pit Stop Auto Repair.

MA LLC has added Ozka brand ag and OTR tires to its lineup of products offered in the United States and Canada.

Sun Auto opens more stores

Continental Tire the Americas LLC has an nounced a new partnership with Universal Technical Institute, which provides training for those seeking careers as auto service technicians. Continental will provide tires, training tools and more to the school.

Ozka Tire was established in Turkey 31 years ago. It manufactures radial and bias tractor tires, farm implement tires and more.

“As a global manufacturer and distributor, we are continually providing our dealers and end users with an array of diverse and high-quality, application-specific tires,” says Tim Phillips, CMA vice president of marketing and operations.

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enice, Fla.-based Pit Stop Auto Repair has acquired Micky Franklin’s Tire & Auto, a single-store dealership in North Fort Myers, Fla. Pit Stop Auto Repair will continue to operate the outlet under the Micky Franklin’s name.

The Micky Franklin’s location, which employs eight people, offers a full menu of automotive services, as well as custom wheels, lift kits, off-road accessories and more, notes Ramsay, who owns a total of seven Pit Stop Auto Repair-branded stores along the southwestern coast of Florida.

Industry News

Control Your Climate. Just Add Water.™ WWW.COOLBOSS.COM • 1-855-223-2665 ©2022 BendPak Inc. All rights reserved. BendPak® is a registered trademark. *Your specific location may require a combination of multiple models and/or sizes to provide the most effective cooling experience. At Cool Boss, we focus on innovations that deliver incredible comfort and value. Every one of our COOLBREEZE™ and COOLBLAST™ evaporative coolers use normal tap water to instantly chill areas at a fraction of the cost of traditional aircooling methods. Just plug them into a standard wall outlet, fill with water, and instantly lower the surrounding temperature by as much as 26 degrees. It’s that do-it-yourself simple. Learn more at COOLBOSS.COM or call 1-855-2BE-COOL A Division of BendPak Inc. Auto-refill26˚F Cooling* CoolingLargeAreaEasy-to-use Control Panel Bring Indoor Comfort Outdoors Energy Efficient Warehouse Cooling

Firestone Ag hikes prices

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ll Star Auto Lights, a distributor of alternative automotive parts and a portfolio company of Atlantic Street Capital, has acquired Blackburn OEM Wheel Solutions. e deal marks All Star Auto Lights’ third acquisition in the wheel category in the last year.

BendPak Inc. has made several changes to its executive team. President Don Henthorn, who has led the company since 1965, has become chairman emeritus. Jeff Kritzer has succeeded Henthorn as president and CEO.

Longtime Chicago, Ill.-based industrial tire dealer Charlie Cohen recently died at the age of 76. Cohen was one of Chicago’s most successful industrial tire brokers for decades. In 1978, he founded Industrial Tire Brokers, which quickly became one of the city’s most successful industrial tire dealerships. In 2006, Cohen formed Industrial Tire Solutions with partner Mike Pollini.

Thomas Beroth Jr., who owned and operated King, N.C.-based Stokes Tire & Automotive for more than four decades, recently died at the age of 65. “He was an excellent businessman who was known for running a tight ship,” according to his obituary.

“Craig is a noted expert in the eld of electric and hybrid vehicle service, with decades of experience,” says MTD Editor Mike Manges. “ e goal of his column is to educate MTD’s readers about electric vehicles and hybrids, including how they can service these vehicles e ectively and pro tably.”

e new facility “represents an extension of NCT’s commitment to excellence,” say NCT o cials. It opened on July 1 so customers in Manitoba could have “the opportunity to evaluate NCT’s service in the slower summer months, giving them con dence to rely on consistent deliveries as the industry moves into the winter rush.”

BendPak makes changes

Under a new agreement between ASA Automotive Systems and Sonsio Vehicle Protection, ASA software users will be able sell Sonsio road hazard protection plans. Sonsio plans are offered at the time of tire purchase.

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All Star Auto Lights o cials say the purchase signals a transformation beyond its traditional auto lights business “into a leading automotive a ermarket equipment supplier.”

Blackburn provides steel and alloy OEM wheels, wheel covers and center caps. Its headquarters is in Macedonia, Ohio, a suburb of Cleveland.

NCT was established in 2015 by Cory and Chad Davis. It has warehouses in Calgary, Alberta, plus Langley and Kelowna, British Columbia.

Bites

All Star Auto Lights acquires Blackburn OEM Wheel

Bridgestone Americas Inc.’s Firestone Ag division raised prices on select products in the United States and Canada up to 10% on Sept. 1. The hike is in response to “market dynamics and conditions, including increasing costs of raw materials and logistics,” according to Bridgestone of cials.

MTD September 202214

Leeds West Groups (LWG) has acquired three Big O Tires locations in Altoona, Ankeny and Urbandale, Iowa, from Willis Automotive, which is based in Clive, Iowa. These outlets are LWG’s rst Big O Tires locations in Iowa.

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North Country Tire opens distribution center in Winnipeg

dmonton, Alberta-based wholesale distributor North Country Tire (NCT) has opened a 50,000-square-foot warehouse in Winnipeg, Manitoba.

LWG adds Big O stores

Chicago’s Charlie Cohen dies

Photo: North Country Tire

TD welcomes its new columnist, Craig Van Batenburg, who will write MTD’s EV Intelligence column. Van Batenburg is the CEO of Van Batenburg’s Garage Inc., dba Automotive Career Development Center (ACDC), which is based in Worcester, Mass.

Stokes Tire owner dies

OK franchisees expand

Industry News

OK Tire franchisees Michael Coggins and Brent MacNeil have opened their fourth OK Tire store — a location in Dartmouth, Nova Scotia. There are more than 325 OK Tire locations across Canada.

In addition to a new warehouse in Winnipeg, Manitoba (pictured), North Country Tire has facilities in Calgary, Alberta, plus Langley and Kelowna, British Columbia.

ASA, Sonsio join forces

EV expert Van Batenburg joins MTD

A 50-year automotive service industry veteran, Van Batenburg provides training for facilities that service — or want to service — electric and hybrid vehicles.

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800-343-3276 | @yokohamaohta

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Alliance, Galaxy and Primex tires help customers around the world tackle real-world challenges in some of the toughest tire markets on the planet. Farm. Forestry. Construction. Ports and material handling. And more. Those are applications where details matter, quality pays and return on investment is the name of the game. Ask your Yokohama Off-Highway Tires America, Inc. rep how our brands can help you offer more to your customers. other Alliance, Galaxy and Primex branded tires at www.yokohama-oht.com or call us at (800) 343-3276.

Photo: Southern Tire Mart LLC

Raben Tire Co. had 30 locations — plus three retread plants — throughout Indiana, Kentucky, Illinois, Ohio, Missouri and Arkansas when Tom Raben received the Tire Dealer of the Year Award in 2002.

1993

MTD established the Tire Dealer of the Year Award in 1993. Its rst recipient was Barry Steinberg, founder of Watertown, Mass.based Direct Tire & Auto.

SOURCE: MTD RESEARCH

SOURCE: MTD RESEARCH Photo: MTD

Relevant statistics from an industry in constant motion

Photo: MTD

SOURCE: MTD RESEARCH Photo: MTD

$41.1 MILLION

Percent by which Norwell, Mass.-based Sullivan Tire Co. Inc. increased its store count between 2002 and 2012 — from 50 stores to 75 outlets — under the direction of Robert Sullivan, who was named MTD’s Tire Dealer of the Year one decade ago. Sullivan Tire now has 92 outlets throughout New England.

Total amount of money that Tommy and Jim Du , the owners of Southern Tire Mart LLC and the 2021 recipients of the MTD Tire Dealer of the Year Award, gave to charity in 2020.

30

SOURCE: MTD RESEARCH

40 Age at which Nick Mitsos joined the tire industry, starting as a retail salesman. He went on to open Rancho, Cucamonga, Calif.-based Mountain View Tire & Service, which grew to 30-plus stores. Mitsos was named MTD’s Tire Dealer of the Year in 2011.

SOURCE: MTD RESEARCH Photo: MTD

Numbers ThatCount

50%

MTD September 202216

PROFITS UP, COSTS DOWN GS VS01 IN STOCK REGIONAL: CLOSED SHOULDER DRIVE GroundSpeed’s commercial GSVS01 is a regional haul, closed shoulder drive tire built for ultimate durability and long tread life, for more information on this tire visit GROUNDSPEEDTIRES.COM or contact 305.621.5101.

While we continue to hold the perspec tive that volumes in the long run will become more closely aligned with current levels of GDP growth, we will be closely watching macroeconomic conditions as GDP growth has now declined for two straight quarters.

Less than 25% of the net number of respondents to our latest survey reported that they experienced positive year-overyear demand in July — a smaller percentage than observed in June and May 2022, but a decline nevertheless.

Given volatile industry conditions due to inflation and geopolitical concerns, we continue to track several data points in

While our index is best used to deter mine longer-term trends, we do note that the picture is not entirely grim as miles driven fell just 2.6% and then rose by 7.6% in the two weeks following the holiday.

order to assess the health of automobile travel demand, which correlates with tire usage and Lookingwear.atmiles driven during the past month, trends again declined on a year-over-year basis, with the rate of deceleration increasing in July, which showed a steep 8.7% year-over-year decline versus a 1.8% decline in June 2022.

So while the rate of year-over-year decline is improving, we also note that tire manufacturer price increases and inflationary pressures in the broader economy are still working to dampen consumer tire spending.

July posted a price increase of 59.7% in carbon Examiningblack.crude oil, despite recent declines in prices at the pump, overall prices remained elevated on a year-overyear basis in July. We note that July saw a 44.5% year-over-year increase.

From a high-level view, we get the feeling that dealers are coming to terms with the fact that consumers are spending less — just as earlier this year, consumers appeared to be coming to terms with increased pricing across all areas of spending.

This continues the trend of rising raw material price inputs, which began at the start of Holding2021.current spot prices flat would yield a 30.1% year-over-year increase in raw material input costs during the third quarter of 2022, which represents a sequential 3.2% increase from the second quarter of the year.

While gas prices remain a concern, as noted previously, our historical analysis suggests that demand for gas is relatively sticky and poses a more modest threat to further reduction in miles traveled than headlines would have one think.

We also note that following Russia’s invasion of Ukraine and subsequent fuel price increases in the U.S., the months of April, May, June and July all experienced declines in miles driven.

R

In looking at specific price movements, we note that carbon black has seen its price increase on a year-over-year basis for 19 months in a row, while jumping 3.9% from June 2022.

A blip and then a dip

MTD September 202218

May-21 Jun-21 Jul-21 May-22 Jun-22 Jul-22 Average Increase 34% 25% 67% 17% 29% 25% 41% Flat 33% 25% 33% 33% 14% 25% 27% Decline 33% 50% 0% 50% 57% 50% 32% Total 100% 100% 100% 100% 100% 100% 100% SOURCE: NORTHCOAST RESEARCH ESTIMATES Snapshot of Dealers’ PLT Volumes (Year-Over-Year Change)

Your Marketplace

Turning to raw material costs, the “basket” of raw materials needed to make a common replacement consumer tire rose 31% on a year-over-year basis in July 2022, while also increasing on a sequential basis by 2.1% from June.

John Healy is a managing director and research analyst with Northcoast Research Holdings LLC, based in Cleveland. Healy covers a variety of subsectors of the automotive industry.

RAWS CONTINUE TO RISE

ecent dealer commentary suggests that consumer demand for passen ger and light truck tires fell on a net basis during July 2022, continuing a trend that we have observed over the last several months.

John HealyBy

The price of reinforcement items con tinued to track higher on a year-over-year level in July — growing by 41.3%, a strong increase similar to what happened during the previous month.

However, natural rubber prices fell 2.6% on a year-over-year basis in July 2022, while also falling 8.6% on a sequential basis from June 2022 levels. ■

While July showed volatility, we feel the recent decline in gas prices is helping stabilize trends in miles driven and vehicle usage. That said, we do believe that pain at the pump — coupled with inflation in all areas of consumer spending — is having a negative impact on miles traveled.

DEEP DIVE INTO MILES DRIVEN

WHY CONSUMER TIRE DEMAND CONTINUES TO DECLINE

Looking ahead to the fourth quarter, given elevated raw material costs recorded at the end of 2021, we estimate there will be an 18.9% year-over-year increase in the raw material cost to build a tire next quarter — holding current spot prices flat.

During the Memorial Day holiday, miles driven increased. But that trend changed in July, as miles driven fell 27.5% on a yearover-year basis during the week of July 4.

Tire Dealer of the Year

With the best people, ‘you’ll never lose’

Bob Dunlap is an empathetic team leader and MTD’s Tire Dealer of the Year

BY JOY KOPCHA

At age 92, Bob Dunlap has no plans to retire. He says he’s seen too many of his friends die after they retired because they didn’t remain active. Dunlap & Kyle’s wholesale operation hit $1.2 billion in sales in 2021. “I’m going to stick around until we get to $2 billion in wholesale — if the damn coffee doesn’t wear out.”

21

Photo: Joey Brent

He says he’d be happy to spend his final moments on this Earth behind his wooden desk, gnawing on a cigar, crunching numbers and serving as chairman and CEO of Dunlap & Kyle Co. Inc.

In the last 60 years, Bob Dunlap has transformed that sideline business into a whopper of a regional wholesale operation. In 2021, Dunlap & Kyle surpassed $1 billion in sales.

Dunlap & Kyle doesn’t map out its growth strategy based on what other wholesalers are doing in the market. But Bob Dunlap says he’s received letters from multiple tire dealers in one particular market, asking him to build a warehouse there. “If they start writing you to put one there, it’s a good place to go,” he says.

Dunlap & Kyle’s goal is to be the most dependable company in America. A dependable company requires a dependable leader and there may be no better word to describe Bob Dunlap. But let’s give him one more title anyway: MTD’s Tire Dealer of the Year.

You could almost say he’s been there since the company’s beginning.Hisfather, John “Jack” Dunlap, and a cousin, S.H. “Hudson” Kyle, started their namesake business in 1929 — the same year Bob Dunlap was born.

Batesville, Miss., has always been the company’s home. In those early years, the men sold automobiles and later, farm equipment. They distributed oil, managed a junkyard and even had a mule barn. And on the side, they sold a few tires.

Tire Dealer of the Year

He and his team work without desire or expectation of fanfare. They prefer to hustle under the radar.

MTD September 202222

A few months shy of his 93rd birthday, Bob Dunlap has no plans to retire.

© 2022 Yokohama Tire Corporation YokohamaTire.com ON BEHALF OF OUR ENTIRE U.S. FAMILY OF YOKOHAMA EMPLOYEES, PLEASE ACCEPT OUR SINCERE CONGRATULATIONS ON BEING SELECTED MTD’S TIRE DEALER OF THE YEAR. THIS RECOGNITION IS A TESTAMENT TO YOUR COMMITMENT TO THE DUNLAP & KYLE FAMILY OF COMPANIES, YOUR EMPLOYEES, AND THE COMMUNITIES THEY SERVE. CONGRATULATIONS, BOB DUNLAP 2022 MTD TIRE DEALER OF THE YEAR

ROBERT (BOB) DUNLAP, CHAIRMAN AND CEO OF DUNLAP & KYLE, INC., BATESVILLE, MS.

While others are tracking computerized reports, Dunlap prefers paper and pen. “I can read it better. If it works, there ain’t no need to change it.”

Darrell Hill has known Dunlap for almost 60 years and has worked with him for the last 43 years. He says Dunlap has always had a sharp, mathematical mind.

Each day, Sherry Williams presents Dunlap with a notecardsized, hand-written report that summarizes the previous day. It provides a look at Dunlap & Kyle’s net bank balance and accounts for payments received, checks written and how much money was transferred from the warehouse accounts into the dealership’s primary account, where bills are paid.

Bob Dunlap’s work days begin in the accounts payable department. Even with 18 warehouses and a retail footprint of 41 stores, every bill is paid in Batesville. And Dunlap likes to keep tabs on the checkbook.

The hallways of Dunlap & Kyle’s headquarters feature a trove of historical photos, awards and news stories. Bob Dunlap’s of ce is decorated with even more, including photos of employees who worked for him decades ago. He doesn’t want to forget them or their contributions, he says.

When presented with the suggestion that he could save money by issuing electronic payments, Dunlap raises an eyebrow. “That’s selfish,” he says. “The post office has got to survive, too.”

KEEPING AN EYE ON INVENTORY

MTD September 202224

Some might mistake this analog approach as a simplification of things for an older man accustomed to another era. But that should not suggest Dunlap is off his game.

Three women spend all day, every day, processing invoices and issuing checks to pay the bills. And while many vendors have offered — and even urged — the company to pay electronically, Dunlap says no. Every bill is paid with a paper check, which is then stuffed into an envelope and sent through the U.S. Postal Service.

Tire Dealer of the Year

Photo: Joey Brent

CONGRATULATIONS,ROBERT“BOB”DUNLAP

MODERN TIRE DEALER’S 2022 TIRE DEALER OF THE YEAR

From your friends at Bridgestone, we appreciate your partnership.

Tire Dealer of the Year

9. A dog lover. The Dunlaps have 12 dogs at home and Dunlap says he often wakes up in the morning with a Ger man shepherd sleeping on his head. He grew up with hunting dogs and jokes that if he hadn’t missed his dogs so much he might have stayed in the Navy.

5. An Eagle Scout. Dunlap is a proud Boy Scout and he’s taken those scouting lessons to heart. He’s obviously earned his merit badge in tree planting many times over, but also says the Boy Scouts taught him to be prepared and do a good deed every day. He continues to financially support the Boy Scouts of America to this day.

Bob and Cyd Dunlap have been married for 33 years. He likes to joke that he once had a different life — BC, or “before Cyd.” But then he concedes, “She’s smarter than I am.”

Herschel Walker’s U.S. Senate cam paign, but declined the offer since he doesn’t travel anymore. “I hated that I didn’t meet Trump. I wanted to tell him that he’s the best president I’ve had in my lifetime, but also, he’s the only person I know who is crazier than me. He’ll tell you what he thinks. There’s nothing wrong with that.”

7. An admirer. Dunlap was born during the Herbert Hoover administration and remembers Franklin D. Roosevelt during World War II. But he labels a more recent former president as his favorite: Donald Trump. He was in vited to meet Trump in Atlanta, Ga., by

2. A worker. Dunlap doesn’t believe in retiring. Yes, Dunlap & Kyle Co. Inc. offers a retirement plan to its employ ees — along with a “Cadillac hospital plan.” But over and over again when his longtime employees mention retiring, he asks them to stay on a little longer. One told him, “I’ll stay as long as you do,” and Dunlap said, “No. We need you to stay longer.” He’s convinced that working is good for his health. And he knows that keeping good employees working is good for the company.

Nine things to know about Bob Dunlap Fast facts about MTD’s 2022 Tire Dealer of the Year

MTD September 202226

Photo: Joey Brent

6. A political enthusiast. He’s never run for office, but Dunlap loves to talk poli tics and he’s increasingly putting his money where his mouth is. He’s irritated by leaders in Washington, D.C. and is supporting Republican candidates all over the country. Is it making a differ ence? “Well, not yet,” he says. “The election’s not until November.”

8. A husband, father and grandfather. Dunlap has been married to his wife, Cyd, for 33 years. He has five children — Michael, Joe, Richard, Amy and Angela — as well as 10 grandchil dren. His sons all work in the busi ness and several of his grandchildren are taking on bigger roles, including managing warehouses.

4. A listener. Dunlap still remembers what a Navy chaplain told him and his fellow classmates as they were graduating from the Navy ROTC at the University of Mississippi. The chaplain quoted George Bernard Shaw: “A gentleman is one who puts more into the world than he takes out.” Dunlap says, “If you plant enough trees you’ll be a gentle man when they plant you. It might be the only thing I’ve got going for me.”

1. A coffee drinker. Dunlap believes in the benefits of drinking black coffee and specifically believes drinking it every day is the secret to a long life. He started drinking coffee when he was in the Navy and always has a pot on his desk. For those who need convinc ing, he keeps copies of a USA Today article written by Dr. Michael Daignault that analyzes the latest research on whether drinking coffee increases your lifespan. He offers visitors the article, along with a cup of coffee.

3. A tree planter. When he was in high school, he started planting trees in Mis sissippi. Even when he didn’t have his own land to plant them, he’d plant them for someone else. Dunlap has always loved the outdoors. He owns an 11,000acre island along the Mississippi River that’s home to a hunting lodge. He plants 50,000 to 100,000 trees a year on Caulk Island and picks varieties that provide hearty food for wildlife. He says he has planted millions of trees and believes many of today’s environmental woes can be solved by planting more of them.

CONGRATULATIONS!

Sutong Tire Resources congratulates Robert (Bob) Dunlap on being awarded the MTD Tire Dealer of the Year. We are proud to consider you a partner and look forward to your continued success.

Tire of the Year

Photo: Joey Brent

MTD September 202228

Dunlap & Kyle prefers to own the real estate and buildings where it does business and invests in concrete, tilt-up construction. Dennis King, left, shows Bob Dunlap the construction drawings for one of two warehouse expansions that soon will be underway.

Dealer

FROMCONGRATULATIONSTHETITANTEAM! Thank you for your partnership.

Dunlap keeps a memo from June 1 on his desk that shows the eye-popping figures. It lists every warehouse and the value of its inventory on that date in 2021 and one year later. Every warehouse manager received a copy, which included

Dunlap’s keen eye and daily trek to the finance office delivered a startling realization recently. As he was reviewing invoices, the order dates were grabbing his attention. Even in the beginning of August, many of the tires arriving at Dunlap & Kyle warehouses were from orders placed in September and October of 2021 — nearly 12 months earlier.

It’s a lingering effect of the pandemic and supply chain upheaval that followed. Last year, consumer demand outpaced tiremakers’ ability to manufacture and ship tires. Shipping containers were in short supply, so imports of everything, including tires, were backlogged. Many dealers realized the key to success was beefing up inventories. Dealers who had tires in stock were outperforming those who didn’t. So when

one tire manufacturer couldn’t deliver a product, there was a mad shuffle to find a replacement from another vendor. When popular tires and sizes were available, dealers invested in extra stock. Now, just as demand is sliding downward, backorders from months ago are arriving.

Decades ago, Dunlap’s sales team would gather in the office for a meeting on Saturday mornings. Hill is president of the company’s North Gateway Tire Co. Inc. division in northern Ohio and was sometimes in town for those meetings. He remembers sitting in the corner drinking coffee when a woman would walk in and present Dunlap with a stack of checks. The payments from customers were sometimes five inches

“When he finished he wouldn’t be off more than a buck,” says Hill. “It’s amazing how smart he is.”

It was a precarious situation for dealers with a single store trying to keep a couple thousand units of the most popular consumer fitments on the rack.

The situation was compounded at Dunlap & Kyle by the fact the company doesn’t have a centralized purchas ing department. There are no mixing warehouses. Every warehouse manager buys for his facility and sends the bill to headquarters.Ina12-month span, the value of Dunlap & Kyle’s tire inventory shot up 85%. As backorders have come due in the last few months, monthly payables have quadrupled.

29www.ModernTireDealer.com

Withoutthick.a calculator, Dunlap would flip through every check at a steady pace and add them up in his head. Everyone else in the room placed a bet of how close he’d be to the real total.

It was a real gamble for wholesale distributors who fill warehouses with not just passenger and light truck tires, but with medium truck, industrial and ag tires, too.

“That could put somebody out of business,” says Dunlap. For the first time in 20 years, the company borrowed money to pay its bills.

Tire Dealer of the Year

Fifty-two years later, Gray continues to work at the only full-time employer he’s ever known. He’s now a company vice president and the dealership’s credit manager. And to this day, a photo of Jack Dunlap hangs on the wall above his desk.

“Mr. Jack was instrumental in my life. He was like a godfather to me.”

peared in Gray’s office to thank him for making that introduction. She had gradu ated and was working as a nurse at a local hospital.

The largest of Dunlap & Kyle’s ware houses is in Jackson, Miss. It spans 600,000 square feet. Construction soon will be underway to expand two other facilities, adding 100,000 square feet to each of them.

“He and I just hit it off. I told somebody that I’d much rather my father give me a whipping than that man give me a talking to.”

Gray told her he didn’t know, but he’d be happy to introduce the young woman to his boss and get the conversation started.

Forty years ago, Gray’s office phone rang. The woman on the other end of the line asked, “Doesn’t Bob Dunlap help people go to college?”

Tire Dealer of the Year

Four or five years later, a woman ap

POISED TO GROW

Dunlap performs those good deeds while running a company that Gray says posts sequential sales increases year after year. “We sold over $1 billion last year — the most we’ve ever sold. I do not remember a year where we didn’t sell more the fol lowing year. And we’re ahead of last year.”

He sees that same kindness in Jack Dunlap’s son, Bob Dunlap.

“We told them if they start run ning out of things, pull it from another warehouse,” he says. “We’ve got more (in) freight that way, but at least they’re paidThefor.”strategy is working. Dunlap expects inventory levels to normalize in the next month or so. The bank note will be paid by then, too.

Photo: MTD

“I see us filling in gaps like we have done in Waco. We were able to figure out a way to service people better than we could from (existing warehouses in) San Antonio and Dallas. We needed something in the middle.”

“For some reason, he took a liking to me,” says Gray. “Maybe he saw po tentialWhenthere.”JackDunlap suffered a stroke at the age of 55, he was unable to return to work and required the help of a wheel chair. He needed assistance to get up out of a chair and some nights Gray stayed with him to help.

MTD September 202230

Gray said yes, but it was usually an em ployee or someone Dunlap knew. The woman wasn’t deterred. She was caring for her niece from Louisiana and the girl wanted to go to school. “Do you think Mr. Dunlap would help?” she asked.

However, President Dennis King says he doesn’t foresee Dunlap & Kyle becoming a coast-to-coast wholesaler.

Gray credits the company’s focus on service for that success.

“One of our main goals is to out-service the competition. Everybody buys tires. Price is about the same, so service is the key. I think that’s the reason we still have a human being answering the phone — just little things like that. The first impression (customers) get is a lasting impression.”

“I don’t expect us to ever be a national player,” explains King. “We don’t buy other wholesalers and we don’t plan to buy other wholesalers. And if you’re going to grow organically and not bor row money, which we don’t like to do, it would take us 50 years to spread out. I don’t see us expanding like that.

this handwritten note from the boss in the corner: “B.S.” Before reordering, managers also were told to check the inventory of their fellow warehouses.

She came to the office and Dunlap agreed to help her — as long as she sent a copy of her grades to him every semester.

‘He’s been so good to people’ Longtime Dunlap & Kyle employee Buddy Gray praises Bob Dunlap’s generosity

His next door neighbor, John “Jack” Dunlap, helped him find those summer jobs. And after Gray graduated from col lege at 22 years old, his neighbor helped him one more time by inviting him to work at Dunlap & Kyle Co. Inc.

King says the company will continue

Buddy Gray grew up in a poor family. He knew his parents couldn’t afford to help send him to college, so he scraped together wages from summer jobs, earned a few scholarships and borrowed money from the government to go to school.

Having a large inventory isn’t a new strategy. “If you don’t have them, you can’t sell Dunlap‘em.”prefers to invest in bigger warehouses and to stock more tires than his competitors. That — combined with top-notch service — provides a winning combination for the company’s 18,000 customers.

“Of course, it was Bob, but it made me feel good that she gave me any credit,” Gray says. “He’s helped so many. He’s been so good to people in this community. He doesn’t want recognition or publicity.”

On a wall of Dunlap’s office is a huge U.S. map. Red push pins indicate the locations of existing Dunlap & Kyle warehouses. The newest red pin was planted in Waco, Texas. The 250,000square-foot warehouse opened this pastGreenMarch.pins point to potential expan sion markets around the country. There are a lot of green pins on the map.

This summer, Buddy Gray started his 52nd year of full-time employment at Dunlap & Kyle. Except for four years in sales, he’s spent every day working in the company’s credit department. Dunlap & Kyle didn’t have calculators when he started — only adding machines. But when others saw how much more quickly Gray could work with a calculator, they were ordered for everyone.

A founding member of TBC Corporation and an industry leader, Bob has been a driving force for TBC and our brands for decades.

Bob Dunlap and other members of the TBC Board of Directors

2022 MTD Tire Dealer of the Year

On behalf of the entire TBC family, congratulations on this outstanding achievement. We look forward to your future success and are proud to continue calling you partner, after all these years.

TBC Today publication, June 1988

ROBERTCONGRATULATIONS,“BOB”DUNLAP!

“We don’t model what we do around what others do. We operate a little differently.”

Dunlap & Kyle empowers its employees to make decisions. President Dennis King asks, “How are we in Batesville supposed to know what they need in Mission, Texas? They’re the ones that are there. We don’t need to make that decision for them. They know what their market needs.”

MTD September 202232

Photo: MTD

“He’s a good reader of people. When he sees somebody, he can immediately say, ‘Hey, that guy is good.’ He doesn’t

His father, Denny King, oversees Dunlap & Kyle’s wholesale operation in Jackson.Theyounger King agreed to the meet ing. It only took 30 minutes for Dunlap to convince him to join the business.

Those who know Dunlap define this as his greatest talent.

Darrell Hill at North Gateway Tire believes that to be the case.

to grow along its edges. He has a contract on his desk to purchase land for what would be the dealership’s easternmost location. There’s no set timetable of when a building would be constructed there.

AN EYE FOR TALENT

Photo: MTD

Tire Dealer of the Year

“We want to continue to grow. Without inflation, we would have probably tried to do one (new warehouse) a year, but inflation has tied up so much money in inventory.”

Not only is Dunlap persuasive, but King says he’s “a great visionary. I think he’s built a great team of people. I think it’s one of his real skills — to pick good people. He’s filled the company with good folks. He picks a good person and lets them do what they’re supposed to do.”

King says consolidation in the market and moves by other wholesalers don’t steer where Dunlap & Kyle goes next.

“I had no plans of coming into the business,” says King.

King has worked for Dunlap & Kyle since 1987 and was named president two years ago. He’s the third generation of the King family to work here. His grandfather was the service manager for one of the car dealerships that Dunlap’s father owned.

He graduated from college with a degree in computer science and had a job offer from the federal court system. The courts were just starting to use computers and he was going to help computerize their filing process in Oxford, Miss., which is near Batesville.

“Dad said, ‘Before you do that, go and talk to Bob.’”

Warehouse size is one differentiator. Another is stocking a full breadth of product, from passenger and light truck tires all the way up to ag and OTR tires.

Darrell Hill, right, president of North Gateway Tire Co. Inc., has spent his career in the tire industry and introduced his sons to the business. His son Mike Hill, left, is vice president of sales for the Ohio-based operation.

CDNC3RATULATIDNS TD BOB DUNLAP DE£!$TDnE DUNLAP & KYLE [COMPANY INC] SINCE 1929

“In my case, there’s never a time I didn’t walk out of that office and feel that he had helped me — that he had taken my problem to heart and really cared for me and (given) me the best advice he was able to muster. That’s something to be able to do that.”

MTD September 202234

In the wintertime, he remembers the ink in his pen freezing due to the cold air. He’d bring it inside to warm it in front of the heater. To this day, he’s not sure why he didn’t think to swap his frozen pen for a lead pencil.

Jack King joined Dunlap & Kyle more than 50 years ago, after his time as a pilot in the U.S. Air Force was over. Of his boss, King says, “Bob is the glue that holds this company together.”

Tire Dealer of the Year

“I never said I could sell a tire,” says Bob Dunlap. “I’m not a salesman.”

About 10 years later, Hill left Mohawk and called Dunlap with a business proposition. At the time, Dunlap held the exclusive rights to sell Multi-Mile brand tires in Ohio out of a warehouse in the Cincinnati area.

The next generation of Kings and Dunlaps met at a local coffee shop and Jack King was hired that same day. And just like his father, he’s spent more than 50 years working for Dunlap & Kyle.

After graduating from the Uni versity of Mississippi and flying B-52s in the U.S. Air Force, Jack King came home to Batesville, Miss. He wasn’t planning to look for work immediately, but one night in November 1967, a friend called him and suggested he meet with Bob Dunlap about coming to work at Dunlap & Kyle Co.

Hill asked Dunlap to sell him the MultiMile territory in northern Ohio. He wanted to start his own wholesale operation.

“If you have the best people, you’ll never lose,” says Dunlap. “That’s why I’ve enjoyed it. There have been so many good people.”

Photo: MTD

King says he enjoys the camaraderie of his Dunlap & Kyle coworkers.

Dunlap & Kyle is ‘like a second family to me’ Jack King says working for Bob Dunlap has been ‘a blessing’

In those days, they didn’t spend their days sitting behind desks. They stood all day long and used three carbon sheets to make multiple copies of invoices. “Everything was billed by hand.”

“And from that point on, we were good friends,” he says with a laugh.

Hill remembers the day he met Dunlap. He was working in sales for Mohawk Rubber Co. and came to Batesville. They were in Dunlap’s office, both of them smoking cigars, and he walked around Dunlap’s desk to show him something. He placed his cigar in the ashtray. A few minutes later, he accidentally picked up the wrong cigar and put it in his mouth.

It’s this personal touch that has made his career so fulfilling, says King.

Bob Dunlap likes to joke that the King family is trying to take over.

have to interview him or talk to him for two or three weeks. He knows. It’s just instinct. When he hires one, they’re on their own, because he knows they’re good enough or he wouldn’t have hired him. He’ll say, ‘Go get it.’”

The only job he skipped was delivering tires to customers.

“Bob took me under his wing and let me start working on price lists.”

As an entry-level employee, Jack King’s first assignments were to load and unload trucks. He adjusted defective tires for customers. Eventually he started ordering tires and taking customer orders over the phone — “anything that had to be done,” he says.

At age 80, King is inclined to retire or at least semi-retire. But he hesitates.

Photo: Joey Brent

They started the operation in 1979 with 36,000 square feet of space to service both retail and wholesale customers. That original location in Medina is now a 70,000-square-foot retail store. In 2007,

“It’s almost like working for my family.”

TheInc.two men already knew each other well. They grew up on the same street and King’s fa ther, John, worked as the service manager for Dunlap’s father at a local car dealership.

“I’ve had a good life. I would say the Good Lord first and this company second have given me that good life. I have been truly blessed and one of those blessings is that I’ve worked for Bob Dunlap.”

Dunlap said he’d think about it. Two weeks later, Dunlap suggested they go into business together. And that was the start of North Gateway Tire Co. Inc. in Medina, Ohio.

“It’s just like being with friends everyday. You’re not trying to prove anything. You do your job to the best of your ability. You learn from watching other people. It’s been a real pleasure. I’ve thoroughly enjoyed every minute of it — except maybe getting cold adjusting tires. And in Mississippi, it doesn’t even stay cold for too long!”

AN OPPORTUNITY IN OHIO

His brother, Denny, manages the Dunlap & Kyle warehouse in Jackson, Miss., and his nephew, Dennis, was promoted to president of the company a couple years ago.

“It’s like a second family to me. I’ve always felt secure. And if you need any help, whatever it would be, you can talk to people. You can go in there and talk to Mr. Dunlap any time of the day he is here and he will talk to you.

Robert Dunlap DRIVE FORWARD FOR THOSE WHO ARE FOCUSED, WHO OVERCOME, WHO PERSIST. Congratulations to the MTD 2022 Tire Dealer of the Year: We are grateful for our partnership and look forward to years of continued success.

Photo: Joey Brent

Tire Dealer of the Year

MTD September 202236

A digital dashboard tracks the daily and month-to-date sales and pro tability of Dunlap & Kyle’s 18 warehouses, as well as the company’s top salespeople. Dunlap watches it from his desk and sometimes calls a warehouse manager to harass him about being too low on the list. Here Dunlap is pictured with the internal sales team at the company’s Batesville warehouse.

North

For 93 years, Bob Dunlap and the Dunlap & Kyle Company Inc. team have proven that people truly do make all the difference! Congratulations on winning this award, along with your continued success. Your dedication to offering upfront and honest products and services to your customers and communities is an inspiration to us all. 2022 Michelin America, Inc.

CONGRATULATIONS TO DUNLAP & KYLE COMPANY INC. ON WINNING TIRE DEALER OF THE YEAR.

Bob Dunlap Chairman and CEO of Dunlap & Kyle Inc.

37www.ModernTireDealer.com

Congratulations to Robert “Bob” Dunlap 2022 Tire Dealer of the Year – Modern Tire Dealer

the company built a 170,000-square-foot warehouse in nearby Seville, Ohio. An expansion added 82,000 square feet in 2016. The distribution center serves customers in Ohio, Michigan, Pennsylvania, Indiana and some of WestMikeVirginia.Hillwas a senior in high school when his father and Dunlap opened North Gateway. He had earned enough credits to graduate, so after his school days ended at 10:30 a.m. he reported to work. He changed — and then delivered — tires. He now manages the wholesale operation and is its vice president of sales. Two of his brothers, Jeff and Pat, manage North Gateway’s retail business.

Dunlap graduated from high school

Photo: Joey Brent

When the family first started North Gateway, Mike Hill remembers his father telling him that they’d have to hustle for the first five years, but then it would get“I’measier.still waiting for it to get easier.”

Kenda Tire congratulates Bob Dunlap and his entire team at Dunlap & Kyle on this prestigious honor. Bob is a true legend of the tire industry and Kenda is proud to call him partner and friend.

PAVING HIS OWN WAY

Tire Dealer of the Year

For the last 46 years, Cheri Downs has worked as Bob Dunlap’s administrative assistant.

PLAYING IT FAIR

Being fair is the name of the game for

• Have their back. Being the most dependable company in America means that we are dependable for each other first. Family ties rarely break and we care for each other with the strength of family. We celebrate together. We hurt together. We move toward the same goals together. All of this for our customer family, too.

• Choose to trust. It’s easy to assume the worst, but it’s wise to assume the best. Trust is the foundation of a healthy team and healthy teams build dependable companies.

• Champion your customer. We’re here because of our customers — both internal customers and external customers. While we believe in what we do and how we do it, we are always willing to improve if it serves the customer better or makes us more dependable.

• Get your hands dirty. It’s hard to be dependable when we are not willing to put in the hard work. Our teams work hard and work hard together. There is no job beneath us when it comes to serving each other and our customers.

He spent a Christmas on the French Riviera and skied in the Alps. He didn’t dare admit that the closest he had ever come to snow skiing was roller skating and water skiing.

A tragedy paved the way for Dunlap to make his mark and transform the family business. In 1960, his father suffered a debilitating stroke.

“He was in a wheelchair,” Dunlap said. “He was really messed up. He couldn’t workTheanymore.”Dunlapand Kyle families split up the businesses.

Dunlap respects that kind of tenacity. He’s not averse to hard work and has told his grandchildren, several of whom are working in the business, that they shouldn’t expect a free ride. He has no tolerance for drug use or shortcuts.

“We have a lot of charities,” says Bob Dunlap, who has been recognized for his gen erosity. “The more of them you help and the more money you pay employees, the more money you’re going to make. People miss out on that.”

Photo: Joey Brent

• Go big. Our customers depend on us stretching ourselves in service and innovation. If you have big dreams, let us help you achieve those. If you go big, we can go big.

He served aboard the USS Everglades and says the ship was the first to dock at Barcelona, Spain, after World War II. He remembers a crowd of thousands of people cheering from the shore.

Tire Dealer of the Year

Values guide the way for Dunlap & Kyle

Dunlap & Kyle Co. Inc. is building a workplace culture that appeals to the modern workforce. One part of that has included establishing a list of company values. Dunlap & Kyle leans on these values while working on its goal of becoming the most depend able company in America:

• Finish what you start. We built our reputation for dependability because our people finish what they start. It could be calling a customer back quickly, checking up on a project that stalled or simply finishing a shift with a smile on your face. We finish things.

By 1953, he was back home in Bates ville. He might have stayed in the Navy if he didn’t miss home so much. He joined his father at work.

He wasn’t too excited about car dealerships, but was intrigued by the tire business. Dunlap & Kyle also had a retread shop at the time.

“We got the junkyard and the mule barn.” His brother took ownership of one of the company’s car dealerships.

• Give a damn. Being the most dependable company means every one of us has to give our best efforts — putting our hearts in our work. Our teams focus on helping each other accomplish our goals, no matter what. We do that by jumping in to help our team members, even when it hurts.

Dunlap points to previous generations of family members who had to work hard to survive. His great-grandfather was held in a prison camp during the Civil War and had to walk home from Illinois after the war ended. He never made it all the way back to Alabama and instead settled in northern Mississippi.

“If you hit it straight, you’ve got a chance. That’s the way it’s got to be.”

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Principles that Bob Dunlap and his employees live by

in 1947. He went to college and joined the U.S. Navy. He had to hitchhike his way to college, because even though his father owned a car dealership, he wouldn’t let him have a car until he earned his degree. Dunlap looks back fondly at his time in the Navy. “I didn’t have any money then, but if I did, I should have been paying them.”

ROBERT DUNLAP & KYLE DUNLAP [COMPANY INC] SINCE1929

Congratulations Mr. Bob and the entire Dunlap & Kyle family on this award! We are honored to be a preferred supplier and look forward t o many more years of continued success.

MODERN TIRE DEALER 2022 TIRE DEALER OF THE YEAR/

Generosity runs in the Dunlap family

The company has repeatedly hired some of the same general contractors to build and expand its facilities. “I don’t want them to build me a building and lose money,” he says. “I’ve always been fair. I want them to build it, make a fair profit and then nobody loses.”

Richard remembers an incident when he was a college student. His dad brought home a local, colorful character. Some might have called him “the village idiot.” Richard was annoyed by the wholeLaterspectacle.thatnight, his father asked him what made him so special that he couldn’t be bothered by someone who was a little different. It was a humbling experience. “You know a big ego when you see one. But he’s not doing it for attention.”

There was another instance with a wheel vendor. Dunlap had grown to be pretty good friends with the company’s leaders and saw them at an event in Las Vegas. He told them they hadn’t billed him for an entire shipment of wheels.

Three generations of the Dunlap family report to work each day at Dunlap & Kyle. CEO Bob Dunlap is joined by two of his sons, Joe, left, and Richard, right. But there are many more families with a multi-generational history at the company. “He’s very proud of the third- and fourth-gener ation families here,” says Richard Dunlap.

He remembers a time when he was reviewing invoices after purchasing Diamond brand tires from BF Goodrich. The tiremaker wasn’t billing Dunlap & Kyle enough for the tires the company was purchasing. So Dunlap made a copy of the invoice, fixed the tiremaker’s error and submitted the corrected version, along with a check. Eventually, the company sent a representative to his office to try to straighten things out. “I pulled the file out and they wanted to hire me.”

No matter who it is, the same philosophy applies. He expects a good product at a fair price.

At age 92, Bob Dunlap “gets up and comes to work and does what he thinks he’s supposed to do,” says his son, Richard. “He feels a sense of responsibility to the people in the company and to the community and whatever he’s involved with.”

Dunlap. It’s how he conducts business and it’s what he expects from suppliers, customers and every other partner.

One of the men didn’t believe him and bet him $100 that he was wrong. Dunlap took the bet — and cashed the $100 check when it arrived in the mail.

Bob says, “I don’t worry about the girls, but the boys — I don’t mind putting the heat on them. I can assure you they’re going toJoework.”and Richard agree their father’s sense of responsibility — and inclination to be gen erous — are his greatest at tributes and reasons why he’s been successful.

Photo: Joey Brent

LEARNING FROM THE GREATS

All three of Bob Dunlap’s sons followed him into the tire busi ness. The oldest, Michael, is semi-retired, but has led the company’s purchasing depart ment. Joe’s expertise is in the retail side of the business, while the youngest, Richard, oversees some of the company’s whole saleTheoperations.men’stwo sisters, Amy and Angela, don’t work in the family business, though some of their children have joined the ranks over the years.

MTD September 202240

“We’ve always kept it straight with them, but they better not try to mess us up.”

A key to Dunlap & Kyle’s profitability has been the company’s inventory of private label brands.

“I don’t care what brand you put on it, I want a good tire at a fair price,” says Dunlap.

When it comes to giving back, Bob Dunlap ‘is not doing it for attention’

He was the first wholesale dealer involved in Cordovan Associates, a small buying group of retail dealers that grew

Tire Dealer of the Year

The stores are spread across four states — Arkansas, Missis sippi, Ohio and Tennessee — and operate under the Gateway Tire & Service brand. Collectively, their sales are a 55% mix of tires and 45% service.

Joe Dunlap leads the company’s retail efforts. And like any enterprising tire dealer, he is brainstorming ways to recruit new employees.

“I said, ‘You give them four new tires and wish them well. We don’t need those four tires. That’s the best thing you can do.’”

The company’s retail stores add a profitable boost to Dunlap & Kyle’s bottom line. Company wide, the stores average a 55% to 45% mix of tire sales and automotive service. A few stores have service trucks that offer on-site ag tire work.

“One of the finest things you can do is to give that money to someone who needs it, because my family doesn’t need it.”

He cites this Bible verse: “For unto whomsoever much is given, of him shall be much required.”

As he talks, a family that visited a Gateway Tire store last year comes to mind. A tire on their car was worn out and they didn’t have the money to replace it. The store manager called him and asked him what to do.

Training is one thing, but Joe says the company’s biggest differentiator is its compensation program. It’s modeled after Les Schwab’s plan. At year end, half of the profits are shared with“Peopleemployees.makegood money,” he says. “We had some young boys (who) mount tires, fix flats. They’re 20-some years old. One got a bonus check for $15,000. Another one got $13,000. Not a lot of companies pay that kind of bonus to a tire tech. Those guys who got those bonuses, they’re not going anywhere.

Joe says that “a lot of people are struggling. We don’t know what’s going to happen with the economy. Ordinary people have problems. Somebody’s got to help them.”

“To me, that was a big deal,” he says. “I’m very proud of that.”

MTD September 202242

“They have the knowledge, but don’t have the hands-on expe rience. So they come to us. We just graduated the first three.”

Wholesaling may grab the spotlight at Dunlap & Kyle Co. Inc., but that shouldn’t be an indication that the company’s 41 retail stores aren’t an important piece of the profitability puzzle.

“Your customers are important because if you don’t have

Joe Dunlap is proud of his father’s generous spirit.

A solid retail strategy coupled with a giving spirit Dunlap & Kyle’s retail arm takes care of customers and employees

Photo: MTD

He says one of the company’s master technicians in Nashville is taking automotive school graduates under his wing.

customers, you don’t have anything. But your people — if you don’t have good people, what have you got? You’ve got noth ing. Pay them and be generous. Then they want to be with you because they’ll know you’re going to take care of them.”

It’s a philosophy that’s been handed down through the gen erations at Dunlap & Kyle. Joe remembers going for car rides with his grandfather. They’d get up in the morning and ride out into the country, stopping to ask people how they were doing and if they needed a ride anywhere.

Photo: Joey Brent

Schwab was interested, but it turns out he didn’t qualify. At the time, Dunlap says Schwab didn’t have a warehouse. Tires were shipped directly to each of his retail stores and none of his stores could handle an entire trailer load of tires.

MTD September 202244

Tire Dealer of the Year

The meeting was the start of a friendship that lasted for decades. To this day, Dunlap utilizes things he learned from Schwab in his own business — most notably, the legendary tire dealer’s compensation plan that splits company profits with“Ifemployees.Schwabsaid, ‘Do it,’ I’d be an idiot to argue against him. He was extremely successful. He’s one of the best of the best.”

Another trick he learned from Schwab: pop fresh popcorn in your retail stores. Schwab did it to mask the rubber smell in his showrooms. Dunlap & Kyle does it, too. There’s even a popcorn machine set up at company headquarters.

In its early days, the original buying group was looking for more members. Dunlap and a TBC executive flew to Oregon to meet with Les Schwab. At the time, Dunlap had never heard of him, but was told Schwab had a lot of retail stores. His job was to entice Schwab into joining the buying group.

over the years and eventually blossomed into TBC Corp. When the Multi-Mile brand was created in 1960, Dunlap was among its original buyers and became a founding member of the board of directors. He served on the TBC board until 2000 and Dunlap & Kyle still stocks TBC’s Sumitomo brand.

Dennis King had no plans of following his father to work at Dunlap & Kyle. But a 30-minute conversation with CEO Bob Dunlap upended his career plans. King is now president of the regional wholesale tire dealership.

It was a different buying group that led Dunlap to meet another tire industry legend, Bruce Halle, the late founder of Discount Tire and America’s Tire. The two men got to know each other on trips sponsored by General Tire & Rubber Co. when General was producing some private label products. Dunlap told Halle to keep his stores out of Dunlap & Kyle’s

www.yokohama-oht.com

BOBCONGRATULATIONS,DUNLAP

All of us at Yokohama Off-Highway Tires America, Inc., are delighted to see you honored by Modern Tire Dealer as Tire Dealer of the Year. For decades, you have inspired us not only with your business acumen, but also your dedication to your people and community. The culture of hard work and loyalty has made you a legend in our industry, and we are proud to work with you.

800-343-3276 | @yokohamaohta

TIRE DEALER OF THE YEAR!

“I said I’d really like to use people that are our customers — the roofing companies, the plumbers, the electricians,” he says. “It

was our chance to give back to them for stuff they had bought from us for years.”

There’s a conveyor belt to load tires into the two-story storage room that houses 1,500 units. Containers behind the building are used to store truck tires.

The expansion is already paying divi dends. In the first six months of 2022, Dunlap & Kyle President Dennis King says the store recorded $2.3 million in sales. It’s on track to double its annual pre-tornado sales. Tires account for 80% of the Jonesboro location’s overall business.

Tire Dealer of the Year

The Gateway Tire & Service store in Jonesboro, Ark., was flattened by a tornado in March 2020. On a typical day, this area of the city would be full of people. “But nobody was there because of the pandemic,” says store manager Danny Cook. “There was a lot of damage, but nobody got hurt.”

The building was insured for $4 million. Cook says its final construction price totaled around $5 million. The new space opened to customers in July 2021, 15 months after the tornado roared through town.

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In an instant, Cook says he knew the store had been hit. “It just went ‘poof.’”

The company has a preferred construc tion company it works with to build many of its new warehouses and stores. But Cook had a few people in mind who could cover some of the work.

Cook says there was never a question of whether they would rebuild. He met with Dunlap & Kyle Co. Inc. owner Bob Dunlap shortly after the storm.

Photo: Danny Cook

Tornado destruction allows for expansion

Tire team made that smaller location work for the next year. It meant repairs on commercial tires were done outside, no matter if it was raining or snow ing. “We’re a little different than other tire stores,” says Cook. “We do anything from a wheelbarrow tire to a log skidder tire — not just passenger and light truck.”

The new retail store has 29 service bays, including two on the end that are big enough to accommodate 18-wheelers, backhoes and other large equipment. There are dedi cated alignment bays and three oil change stations. Another drive-through bay houses Hunter Engineering Co.’s Quick Check in spection lane.

“I don’t want to do this again.”

There’s a conference room for staff meet ings and training sessions and the kitchen area doubles as a tornado safe room. It’s large enough to fit both staff and customers.

The whole service area is heated for the winter. Giant ceiling fans keep the air moving in the summer.

Later that day, someone sent him a photo to confirm his hunch. It was a disaster.

Cook says he’s proud of the store and his team. But he’s also glad the rebuilding phase is over.

One of the store’s customers came for ward offering the use of a building he had available. It was much smaller than what the Gateway team was used to — six ser vice bays compared to the original 15 — and there wasn’t a single piece of equipment inside of it, but it was something. Cook went to work ordering equipment.

Not a single piece of shop equipment could be salvaged. Customers’ cars that had been left in the lot were destroyed. Employees eventually gathered to dig tires out of the wreckage.

One month later, Gateway Tire reopened inTheJonesboro.Gateway

Law enforcement was on the scene. There was no power. He and his boss decided it was best to meet at the store in the morning.

Location’s sales doubled after rebuild

As the team made do in that smaller space, the original location on Caraway Road was cleared for new construction. And with a chance to start from scratch, the company optimized every square inch for the retail operation. The wholesale warehouse moved 15 miles away to Trumann, Ark.

A large lobby has multiple seating areas, customer workstations and televisions. Five people staff the front sales counter, plus there’s another desk for an employee who handles all of the store’s parts billing. There’s a separate, enclosed kids’ lounge, with toys and a television that broadcasts the Disney Channel.

“We requested that,” Cook says. “You never know.”

Five hours later, an EF-3 tornado leveled the 15-bay store and warehouse. The Na tional Weather Service measured wind speeds of 140 mph. The path of destruction was five miles long.

Danny Cook, the store’s manager, had celebrated a pair of family birthdays that afternoon. By the time he and his wife got home, storms were popping up. He tuned into a local television station’s weather coverage. One of the station’s cameras provided a perfect view of the massive, charcoal-colored cloud approaching town and the twister that dropped from it. Quickly, there were large chunks of debris swirling in the air and electrical flashes.

“Mr. Dunlap said, ‘You’ve been there a long time and you know what you need. If someone says no, you tell them I’m writing the check and I’ll take care of it.’”

Dunlap was receptive to that idea, so he used as many local contractors as possible.

March 28, 2020, was a Saturday and the uncertainty of the COVID-19 pandemic was still fresh. The crew at the Gateway Tire & Service Center in Jonesboro, Ark., had worked their typical morning shift. And at noon employees locked the door and went home for the weekend.

Cook had worked at the location for 33 years. He missed the turn into the parking lot that morning. It was unrecognizable.

Congratulations to Bob Dunlap Modern Tire Dealer’s 2022 Tire Dealer of the Year! Thank you for your outstanding partnership from all of us at Hunter Engineering! +

territory and for a long time Halle did. Halle called Dunlap when his company was planning to open a store in one of the Texas markets where Dunlap did business. Dunlap told him to go ahead.

Operating as both a wholesaler and retailer can be a slippery slope and Dunlap acknowledges that.

“That was a foolish thing to say. They started to put them everywhere!” (There are now more than 1,100 Discount Tire and America’s Tire stores throughout the U.S.)

Photo: MTD

At the same time, he’s not interested in exiting the retail business. “The stores do well,” says Dunlap. “And because of the people involved with them, we’d never get rid of them.”

“There’speople.been two great retailers in this country — Les Schwab and Bruce Halle — and I was fortunate to know both of them well.”

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Tire Dealer of the Year

(Both men were recognized as MTD Tire Dealer of the Year. Schwab won the honor in 2000. Halle won it in 2014.)

But the company also has a retail presence that includes 41 stores in four states.

Dunlap & Kyle primarily is known as a tire wholesaler. (In some regions, it operates under different names: Gateway Tire Co. Inc., Hesselbein Tire Co. Inc., North Gateway Tire Co. Inc. and South Gateway Tire Co. Inc.)

“We operate our retail businesses differently. I was more like Les Schwab. I thought it worked better for us. But Bruce was good

But sometimes it goes the other way. Dunlap & Kyle recently sold a dozen of its retail locations in the Shreveport, La., market The buyer was none other than the nation’s largest independent retailer: Mavis Tire Express Services Corp.

Dunlap & Kyle owns and operates more than 40 retail stores. This store in Jonesboro, Ark., rebuilt after a March 2020 tornado, is the company’s largest, with 29 bays service bays offering a mix of commercial and retail services.

He says Dunlap & Kyle is keeping its eyes focused on wholesale and isn’t looking to expand its retail footprint because “it interferes with wholesale.”

Importantly, Dennis King notes those stores “remain a

Over the years, there have been wholesale customers who wanted or needed to exit. Rather than potentially lose those tire sales to a competitor, he added the stores to the company’s arsenal.

A WHOLESALE BEHEMOTH

Most of those retail stores operate under the Gateway Tire & Service Center banner.

That doesn’t mean the company eschews all technology. King is of the mindset that “going forward, every company is going to be a technology company. They’re just going to happen to distribute tires or sell home goods or sell groceries. There’s just too much benefit from all the tech that’s available out

In 2021, the company crossed the $1 billion mark in wholesale sales for the first time — $1.2 billion to be exact.

“Business has been great this year,” he says. “It was great last year and as of right now we’re a little bit ahead of where we were last year.”

The secret to wholesale success is service

“We run dedicated routes. We ship a very, very small percentage of our stuff. Almost exclusively we deliver on our own Dunlapvehicles.”&Kylehas considered route optimization software, which looks for the fastest and most efficient path for deliveries, and King concedes “there are more efficient ways for us to get around. But one of the services that our customers seem to really like is a consistent (delivery) time.”

Dunlapthere.” & Kyle’s warehouse team in Dallas is now look ing at scanners, he says. The problem is there’s no uniform barcode on tires, so the company would need to create its own barcode for every tire or every pallet of tires. King says he knows other wholesalers already have figured this out, “but we’re going to get there.”

King says he was worried that if fuel prices hit the $5 mark, passenger and light truck tire sales would suffer. But the prices never hit that level in the Southeast and have stayed well below $4 a gallon — recently dropping below $3.50 a gallon in many markets.

MTD September 202250

This side of the tire business has been a bit painful for King, who 35 years ago expected to start his career bringing the federal court system into the digital age. Instead he landed in an industry known for its slow adoption of technology.

Photo: MTD

Up until now, the two companies’ geographic territories haven’t overlapped much, so there hadn’t been many oppor tunities to have Mavis as a customer. But King hopes “this will be a catalyst” for more wholesale business in the future as Mavis continues to acquire businesses and expand.

“You just have to live with it and make sure you out-service your competition. You can’t depend on price to be the biggest thing that helps you sell product.

The narrower aisles require an investment in turret trucks, which can navigate the smaller space and pivot to pull products from shelves. Operators can select tires more quickly compared to using a traditional forklift.

Tire Dealer of the Year

While some are worrying about the economy and what it might do to the tire industry, Dunlap & Kyle Co. Inc. President Dennis King isn’t expecting a downturn.

Dunlap & Kyle isn’t expecting a downturn (wholesale) customer. They’re buying a whole lot from us, so it worked out real well.”

Unit sales are flat or off slightly, but inflation is enough to keep total sales above last year’s marks.

Dunlap & Kyle opened its 18th warehouse in Waco, Texas, this year and is preparing to buy land to build its 19th location.

Both new and existing wholesale customers are benefiting from the investments Dunlap & Kyle makes inside its warehouses.

Changes typically only come if shuffling is required because a new route has been added. “You can certainly save money, but if it’s at the expense of the service that your customer expects, then you probably won’t be better off in the long run.”

There may be a slight softening ahead of the midterm elec tions, says King. For example, consumers might opt for two tires instead of four or a single instead of a pair, “but I think once the midterms are over, it will go back to pretty close to normal.”

Squeezingcapability.”thoseracks closer together reduces aisle widths from around 13 feet to about seven feet, says King. This has also eliminated any stacking and balancing of pallets on four corner supports.

“You certainly want to be competitive and offer a good value to your customer, but the most important thing is to be able to service your customer. That’s one of the things Bob has said since the day I came here. ‘Make sure you do your adjustments quickly. They can buy tires from anybody, but (they) want some body who’s going to get the order right and who’s going to take care of it if the order is wrong.’”

The company’s ag tire market is seasonal, but indicators so far are positive. Interest rates may affect housing and other types of construction and that can trickle down to tires. But there’s not much Dunlap & Kyle can do about that, says King.

King says nearly every warehouse has been updated with narrow aisle racking, which “averages about a 20% pick-up in storage

To move products from its warehouses to customers’ doorsteps, the company has around 450 power units in its fleet — most of which are long box trucks — plus a good number of pickup trucks. King says the company owns virtually every vehicle it operates.

With route optimization, the first scheduled delivery one day could be the last delivery the next day. King says the company tries “to optimize those routes for a consistent use. We try to pick the best way to use it the same way every single day.”

First, there was the Buckshot Wide Mudder and then the Gumbo Mudder. Today, Maxxis International-USA manufactures the Buckshot Mudder for Dunlap & Kyle in wheel sizes that range from 15 inches to 22 inches.

Private label tires have been a staple of Dunlap & Kyle’s busi ness and the most prominent has been its line of mud-terrain tires. The Buckshot Mudder is made by Maxxis International - USA. A Gateway Tire & Service customer in Jonesboro ordered this new set to be mounted on his extra set of wheels.

“It’s not a good-riding tire,” says Hill. “It wasn’t built to be. It’s a tire to get you out of that mud and home safe. As far as going down the road, I don’t like it much. It sounds like a fire engine (is) coming.”

The tire’s tread design features talon-shaped pieces and an aggressive sidewall made from a cut-resistant compound. It breaks through the thickest of Mississippi’s swampy mud.

Since the 1970s, Mississippi hunters have mounted the private label mud tires on their vehicles. Darrell Hill, president of North Gateway Tire Co. Inc. in Ohio, loves to go to Mississippi to hunt. He says hunters love the tire “because they never got stuck.”

Tire Dealer of the Year

Mud-terrain (M/T) tires have become somewhat of a status symbol on light trucks these days, but Dunlap & Kyle Co. Inc. found success with M/T tires decades ago.

Ahead of the market

MTD September 202252

Photo: MTD Dealer of the Year

Dunlap & Kyle had its own mud-terrain tires before they were cool

Tire

Unlike its modern M/T tire counterparts, there’s no hint of the Buckshot Mudder being a flexible, comfortable tire for both onand off-road use. It has one job to do.

NEXENTIREUSA.COM

MTD 2022 DEALER OF THE YEAR

Nexen Tire is proud to congratulate our dealer partner Bob Dunlap for being named the MTD 2022 Tire Dealer of the Year.

Employees have already identified several examples related to how a facility handles paperwork. Sometimes an employee has found a way to simplify a process and turn a three-step procedure into a single action item. Replicating that company wide can have a big pay-off.

Now warehouses have a night shift that comes in at 5 p.m. They complete the day’s shipments and get a jump on orders with invoices that might not be completed until the next business day.

Tire Dealer of the Year

“We empower them to do a lot of things and we encourage the vocalization of their ideas. We don’t want to sit and tell people what to do. They have ideas we don’t have and we encourage them to share.”

President Dennis King hosts a semi-regular podcast for employees and a new print magazine shares stories and highlights from each of Dunlap & Kyle’s 18 warehouses and the retail stores in their regions.

Purposefully engaging with the workforce

The company has adopted a mission state ment — to be the most dependable company in America — and has established a list of seven company values.

Other improvements affect the business differently, says King.

“You have to adapt to the environment they want to be in and communication is something that is key to getting younger people involved,” he says. “And we want them to be involved — not just feel involved.

“The way that we’ve operated is that you take a good person you believe in — and Bob is wonderful at picking good people — and you let them run the business like it’s theirs,” says King. “But they don’t know what they don’t know.”

The focus on communication has also opened the door to sharing best practices.

is good for everyone, but King sees it as vital for the younger generation of workers.

King says the company used to have people coming in around 6 a.m. They would take customer orders all day until 5 p.m. and not finish pulling tires and loading trucks until 7:30 or 8 p.m. “That’s tough on work-life balance.”

This year, one of Dunlap & Kyle Co. Inc.’s focuses is on employee communication.

So Dunlap & Kyle is looking for efficiencies and opportunities to streamline things a bit.

The team at the company’s newest ware house in Waco, Texas, is going to experi ment with others’ best practices and maybe fine-tune them along the way. Once the team is convinced “they really are the best” practices, they will be rolled out to facilities company-wide.“We’recalling it our Center of Depend ability,” says King.

“That’s been great for the workforce out there. It’s tough on a guy to work that many hours and never get a chance to see his kid play baseball or be so tired he doesn’t see his wife.”

Communicating with employees

Photo: MTD

Dunlap & Kyle Co. Inc. has launched a magazine for its employees. It highlights the work at each of the company’s 18 warehouses. Managers are encouraged to share tidbits about some of the unsung heroes who work for them. Copies are mailed to every employee’s home address.

It’s also good for Dunlap & Kyle’s custom ers, because Friday’s night shift actually reports to work on Sunday evening. That means customers can place orders online all weekend and those tires will be delivered on Monday.

New tools, strategies help with engagement at Dunlap & Kyle

MTD September 202254

Dunlap & Kyle’s warehouse teams work five days a week and most operate in two shifts. But it hasn’t always been that way.

CONGRATULATIONS 2022 MTD DEALER OF THE YEAR ROBERT DUNLAP AFTER ALMOST A DECADE OF PARTNERSHIP, LANDSAIL TIRES IS PROUD TO CALL YOU DEALER OF THE YEAR & CELEBRATE YOUR CONTINUED SUCCESS.

ROBERT

DUNLAP DunlapFounder& Kyle

INVESTING IN PEOPLE

Dunlap says a larger wholesaler recently tried to hire one of his salespeople. The salesman laughed at the other company’s compensation offer.

“We take care of them. We’ve got a Cadillac plan for

“I respect it and protect it. I’m sitting here drinking coffee and they’re out there working.

Tire Dealer of the Year

Nearly every Dunlap & Kyle warehouse has been updated with narrow aisle racking and most facilities have tires stacked four shelves high — or as high as the eaves of the building allow.

MTD September 202256

“If we could get RFID chips (in tires), that would be great. We could get the reader on there and if you rolled the wrong tire on the truck, it would flash red lights and buzz just like you walked out of Dick’s Sporting Goods with something” with the security tag attached.

“You’d never load a wrong tire. You wouldn’t get a green light until everything that’s supposed to be on (the truck) is there. It would be very helpful, but we haven’t gotten there yet. Maybe one day.”

Dunlap doesn’t understand all the talk and stress involved with keeping good employees. He thinks most are making it more complicated than necessary. There are job vacancies at the company, but he says Dunlap & Kyle does not have a people problem. How?

Dunlap & Kyle has 1,600 people on its payroll. Many have been there for decades. Second-generation employees aren’t uncommon. The fourth generation of the Dunlap family is working in the business. The same goes for the King family.

Dunlap will not get in the way of an aggressive and driven salesperson. He doesn’t believe in carving up a successful salesperson’s territory and has interfered when a manager has tried to make that move. If a salesperson builds it up, he gets to keep it — even if realistically there’s enough business to split the area in two.

Photo: MTD

hospitalization and insurance, a retirement plan and then they’re paid a lot of money on top of that.”

ZAFCO congratulates Robert “Bob” Dunlap, Chairman and CEO of Dunlap & Kyle for winning MTD’s Tire Dealer of the Year award. We’re proud to call D&K our partner and look forward to continued success together!

MTD TIRE DEALER OF THE YEAR 2022

CONGRATULATIONSBOBDUNLAP

After so many years in the tire industry, Bob Dunlap has no shortage of stories.

He threatened to do it again recently after “some outlaws stole about $80,000 worth of tires from us. They came in here on a Saturday night and got $40,000 (worth) and then two weeks later came back and did it again.”

“As long as I’ve got money, it’s theirs, too,” says Dunlap. “If they work hard, they’re entitled to compensation. I think to not do that you only hurt yourself.”

He learned other tire dealers in the region had been hit around the same time. There have been no arrests.

“He could call and shut down any rub ber factory,” Dunlap recalls.

Dunlap pulls no punches

Tire Dealer of the Year

One year, Dunlap invited Bommarito to attend a tire convention with him in Las Vegas. And during that convention, Dunlap walked into a meeting with a tiremaker and had Bommarito at his side.

“I’m not going to mess with it. I’d be stupid to do that.”

Dunlap says this most recent theft has inspired him to transform a covered, outdoor storage area that mostly holds truck tires into a permanent building with walls so the inventory is more secure.

The flipside is that the employees he helps are fiercely loyal. They hustle. Those who see the value of their benefits plans work even harder, he says.

Most recently it was an employee whose house was destroyed by a fire.”You’ve got to help them out. It’s why I make a living.”

“You don’t think that’s fun?

“In the tire business you’re supposed to have fun. Don’t take things too seriously.”

Career spans colorful tales, characters

“I’ll help people, but I’m not going to put up with that,” he says.

“They just looked at me,” he says of the tire executives, still tickled by the shock that overtook the room.

As Dunlap & Kyle has opened new warehouses, Dennis King says the company has promoted “someone we think can get the job done” to oversee the operations.

Photo: Joey Brent

Dunlap has always been a “pull no punches” kind of guy. And he’s gotten a kick out of others who operate in the same vein. One of those was the late Pete Bommarito, who led the United Rubber Workers Union from 1966 to 1981. In that time, Bommarito orches trated two major strikes that lasted months and involved the workforces of multiple tiremakers.

Over the years, Dunlap has rewarded some employees with a share of the busi ness — often 5% of a specific warehouse. When a successful salesman said he wanted to retire, Dunlap didn’t want to lose him. He rewarded him with a share. The man has said he’ll work as long as he lives. This generous spirit applies to more than the company’s sales team.

MTD September 202258

He believes in helping all kinds of people, but his employees get extra attention.

“Take care of them and they’ll take care of you,” he says. “If you’re doing well, why do you want to be tight with the money? What are you going to do with it? We couldn’t operate without good people.”

“I’ll take care of their problems. They come to me with everything. I spend half my time dealing with people’s problems.”

■

In his younger years, he recalls camp ing out behind the company’s Batesville, Miss., headquarters looking for thieves. Someone was stealing tires from behind the warehouse and hiding them under a hill. “I stayed up all night,” he says.

G

Healy: This integration and combination of the two companies has been probably a bit slower than I would have expected, but I think that slowness in terms of how the integration has come about makes a lot of sense.

If you look at what’s gone on in the tire industry — logistics, manufacturing and supply chain dynamics — it’s been a very complicated last 12 months.

MTD: You mentioned communication. We hear from dealers in general that they sometimes do not hear from some of their suppliers enough. Do you think that’s been problematic here or is it just

On Goodyear’s first quarter earnings call, they discussed that Cooper products are now going to be available at Goodyearowned and operated auto service centers, as well as making Cooper product available through the TireHub distribution network. (Editor’s note: TireHub LLC is owned by both Goodyear and Bridgestone Americas Inc.)

That being said, I would say in the last two months or so, we’ve started to see moreWe’vemovement.startedto see messaging (from) the company — more combined than separate from one another.

Those are things we had not seen and were not taking place four months ago. Those are two examples that signify to me that change is on the horizon.

Goodyear and Cooper — what’s next for dealers?

ANALYST JOHN HEALY DISCUSSES BRANDS, AVAILABILITY AND MORE

“My sense — in terms of some of the communications I’ve had with people in the channel — is that the hope for Goodyear is that the integration and the ability of dealers to choose Goodyear and Cooper products across the portfolio — and sourcing it — will be completed sometime during the first half of 2023,” says John Healy, managing director at Northcoast Research Holdings LLC.

oodyear Tire & Rubber Co. finalized its acquisition of Cooper Tire & Rubber Co. 15 months ago. In Goodyear’s latest financial report, issued last month, the Akron, Ohiobased tiremaker credited its integration of Cooper and other factors with helping it achieve a 35% year-over-year sales increase during the first half of 2022.

And I think forcing an integration of

Photo: MTD

Tire industry analyst John Healy of Northcoast Research Holdings LLC — and author of MTD’s monthly Your Marketplace column — shares what he knows in this MTD exclusive.

manufacturing and sourcing and supply chain… probably would have done more harm than good.

MTD staffBy

Some dealers I spoke with who have done business with Goodyear and Cooper historically are expecting more updates about programs, relationships, distribution alignments and things like that. And they’re hoping to hear some things on that front in the next few months.

What can Goodyear and Cooper dealers expect to see beyond that?

In the same statement, Goodyear revealed that it has approved a plan that will reduce “duplicative global administra tive headcount” to the tune of 490 jobs and close “redundant” Cooper warehouses. Additional specifics were not shared.

Goodyear-Cooper

MTD September 202260

MTD: It’s been more than one year since Goodyear finalized its acquisition of Cooper. What has happened since then in terms of incorporating Cooper’s opera tions into Goodyear and what can dealers expect to see later this year?

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Healy:portfolios?

how that’s going to go when putting two companies of this size together?

I haven’t heard anything about the brands specifically, but I think the comment you made about Mastercraft is

So I think (in) the U.S. market … we’ll probably see that kind of collaboration or combination take place next year and my sense is they’re trying to get some lessons learned and iron out the process internation ally, which is probably more manageable.

“I think the big focus for Goodyear right now — beyond managing the threat of rising raw material costs that have been going on in the industry — is they’re starting the implementation of Cooper products in the U.S.,” says Healy.

MTD: TireHub now carries Cooperbranded products and Goodyear’s 570 company-owned stores will now have access to Cooper products. Have you

I wouldn’t be surprised if dealers started learning about part of the plans over the next couple of months.

Goodyear-Cooper

I think those things are not things dealers always want to hear. I don’t know if the messaging has broken down. I haven’t heard that. I think it’s more of what the message has been.

Healy: My guess is the communications between dealers and manufacturers have not always been, in the last 12 months, things dealers want to hear — probably related to fill rates, which are tough because of manufacturing and supply chain, and the other one, which is, ‘I love you, but your tires are going to cost 6% more after this date.’

talked with any Cooper dealers who now will be carrying Goodyear, Kelly or Dunlop-branded products or conversely, Goodyear dealers who might be gaining access to Cooper, Mastercraft, Starfire or other former Cooper brands?

Currently, I think there’s some pilot activity that’s going well for Goodyear. But I think most of that piloting activity of integrating the product of Cooper is taking place in some of the international markets.

Photo: MTD

MTD: It looks like — based on some marketing and advertising we’ve seen — that Goodyear is putting some marketing emphasis on not just the Cooper brand, but also the Mastercraft brand, which was traditionally Cooper’s secondary line. What about the rest of Cooper’s brand portfolio — and not just consumer, but even commercial, with the Cooper truck tire line and the Roadmaster truck tire line? Where do you see that all shaking out? Have you heard anything about ongoing efforts to integrate the two brand

I think if you’re making tires and you’re importing tires and you’re mov ing tires around the country, it’s been a hard one. So I would chalk it up to what the message has been, rather than a breakdown in communication.

MTD September 202262

Healy: When I’ve asked that question to dealers — unless there is what I would say a specific, unique effort to obtain that product — it doesn’t appear there has been a major combination of programs. It seems to me that unless there have been unique circumstances, the relationship has been largely unintegrated at this point.

My sense — in terms of some of the communications I’ve had with people in the channel — is that the hope for Goodyear is that the integration and the ability of dealers to choose Goodyear and Cooper products across the portfolio — and sourc ing it — will be completed sometime during the first half of 2023.

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So I think the acquisition of Cooper was not just about the integration of plants. I think it was about brand positioning and via brand positioning, creating more price integrity for the Goodyear brand.

MTD: Another thing we wanted to touch on was run-rate rationalizations — or in plain English, cost savings. When the deal was announced in February of last year, Goodyear said it expected to enjoy something like $165 million in what it calls run-rate synergies and that number has increased to $250 million. Can you comment on that? Any thoughts on the increased amount of cost savings expected?

So it doesn’t surprise me that they’re emphasizing the value segment of the market and I think if they do that well, it creates an opportunity for the Goodyear brand to reinflate to more traditional positioning on the premium side and keep the Goodyear brand closer to the Michelin, Bridgestone and Pirelli price points.

When we spoke with them originally about the $165 million target, I don’t think there were grandiose expectations for plant closures or plant capacities that contributed a lot to that and I still don’t think that’s the case.

And I think that’s something that Goodyear had struggled with previously without brands like Cooper and Mastercraft. Kelly and Dunlop had been strong brands historically, but currently maybe (have) lost some of their luster and awareness.

Additionally, you look at the purchase price of a tire — the opening price point — because of raw material (cost) increases, freight costs and things like that, we all know the price of tires has gone up pretty dramatically over the last 24 months.

I think Goodyear’s focus remains on that high value-added (HVA) tire category and producing there, so I think if parts of the process are in the low-value tier category … that could eventually be where there’s risk of production changes.

I would not be surprised if (there are) more decisions made in how the product is accessed and dealers are informed in late-summer, early-fall. And I think at the beginning of the year, those programs and plans will be implemented.

MTD September 202264

MTD: Will that alignment hold inter nationally, as well? We know that was an interest of Goodyear’s…

■

Healy: It’s roughly been a 50% increase… that’s expected to be realized by the end of 2023. And I think that number is accurate.

MTD Another aspect has been manu facturing footprint. Goodyear has two U.S.-based plants that manufacture consumer passenger and light truck tires and Cooper had three — one in Findlay, Ohio; one in Tupelo, Miss.; and one in Texarkana, Ark. Those three plants together add an extra 97,000 units of consumer tire manufacturing capac ity to what Goodyear already enjoys or what Goodyear enjoyed. Can you comment on the manufacturing (aspect) of the integration? Will there be some rationalizations or maybe some capacity movement from plant to plant? Where do the Cooper plants fit in right now?

At this point, I think largely it’s been (from a) personnel standpoint. And when I say personnel standpoint, I would say it’s been from a support, sales and business operation (side) and the administrative side of the business and not necessarily on plants or productionoriented plays.

Goodyear-Cooper

But they haven’t laid things on the table and I think there are reasons for that. I think they are committed to learning the right things and trying to move forward. I think they are taking a white sheet of paper to redraw the manufacturing of the company going forward.

Healy: I think the Cooper plants right now are largely operating with limited changes to them. There has been limited amount of disclosure from Goodyear at this point about what plans are for the plants. What they’ve disclosed to us is the focus of the

plants … is trying to learn what plants do things well, what is going on within plants that could cause Goodyear going forward to be a stronger, better manufacturer and really trying to harmonize and learn things from one another.

Healy: Yeah, I think to some degree the international market is a little more com plicated because capacity is one thing and demand is one thing, but it’s about what the strategy is along with them. My sense is the international plants will probably take a longer period of time to figure out just because it’s more dynamic to what’s happening with the growth strategy in those markets.

MTD: When looking at the Cooper acquisition, it’s somewhat easy to forget there’s a huge international component to this, particularly in China, where Cooper has a number of manufactur ing arrangements. Cooper and Sailun Vietnam Co. Ltd. also have a joint venture truck tire manufacturing plant in Ho Chi Minh City, Vietnam. So there are a lot of international considerations, too…

Healy: Absolutely.

Some of the promotions to executive positions that have happened at Goodyear and have been announced at Goodyear ... there’s been a number of (Cooper) people assuming those positions.

Where have those savings come from? When you put together two companies like this, you end up with one headquarters. And when you end up with one headquarters, you end up with one legal department. You end up with fewer marketing folks. You end up with a plan to integrate the sales force and the selling network.

One of the things that we think Goodyear and Cooper (people) are working on together is harmonizing and bringing together the operating stuff and ordering systems that the dealers work with. So I think that’s where the synergies are coming from.

I think the big focus for Goodyear right now — beyond managing the threat of rising raw material costs that have been going on in the industry — is they’re starting the implementation of Cooper products in the U.S. And I think what they’re doing is putting it in their service centers and in their TireHub distribution network and seeing how the market evolves once they do that.

I don’t necessarily subscribe to the view that the Cooper plants have an expiration date. I think if anything, Goodyear has been open-minded. But there hasn’t been — as far as I know — a lot of decisions made there as of yet.

an accurate one and I think (it) aligns with what Goodyear wants to do. My sense is when Goodyear looks at the Cooper brand, what they see is a really strong mid-tier brand, a strong value brand and a really nice position in the replacement light truck tire market. I think that’s where they want to play, when you look at the car population and what’s being sold.

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MTD September 202266

early 80% of respondents to MTD’s latest Tire Dealer Automotive Service Study say they o er alignments at their locations for an average ticket of $104.49 per job. What’s new in alignment equipment? O cials from Aston Technologies Inc., Autel, Base USA Corp. (Accu-Turn), BendPak Inc., CEMB USA, Hunter Engineering Co., RAVAmerica and TEXA USA Inc. provide information below.

e AWA-V8 is fully automatic and comes with dual screens that can automatically track targets, while a beam automatically moves to whatever height the technician sets the machine at. “ ere is direct measurement of the machine, so no push compensation is necessary,” says Je Xu, the CEO of Aston.

What’s new in alignment equipment?

LATEST OFFERINGS CAN HELP YOU CAPITALIZE ON THIS PROFITABLE SERVICE

Auto service

The MaxiSYS IA900WA from Autel is a combination, two-in-one wheel alignment and ADAS calibration frame system.

The AWA-V8 from Aston Technologies Inc. is fully automatic and comes with dual screens that can automatically track targets.

N

e AWA-V9 is similar to the AWA-V8 because it is compatible with all types of car li s and has a moveable beam that moves up and“Whendown. people li the car, they can adjust the vehicle and do not have to do alignment from the beginning because the beams move up and down automatically,” says Xu. is feature and the way the posts are xed on the cabinet provide time savings.

Autel’s MaxiSYS IA900WA is a combination, two-in-one wheel alignment and advanced driver assistance system (ADAS) calibration frame system.

Aston released its 3D wheel alignment machine, AWA-V8, in September 2021 and released its AWA-V9 wheel alignment machine in 2022.

Maddie GehringBy

Photo: Aston Technologies Inc.

Photo: Autel

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So ware includes illustrated alignment instructions, live readings, required tools and adjustment locations display.

“It’s convenient for shops that don’t want to dedicate an entire bay to alignments,” says John Vera, product specialist. “With a Dannmar D4-12A, the same li can be used for oil changes, undercar service and even wheel and brake work with the addition of rolling jacks.”

Hunter Engineering recently released an updated version of its WinAlign17.1 system. It provides fast alignment readings, comprehensive pre- and post-alignment graphic printouts and other features.esystem also integrates with HunterNet 2, Hunter’s online

“Tire diameters can be adjusted from small to large in less than a second, without any knob-twisting.

e li has a maximum li ing height of 78 inches and features an automatic leveling system with multiple auto-leveling locking positions in each column and a push-button safety release.

Auto service

Photo: Base USA Corp. (Accu-Turn)

Photo: BendPak Inc.

Photo: CEMB USA

BendPak Inc.’s Dannmar brand D4-12A alignment lift can be used to perform two- or four-wheel alignments and general service work on vehicles weighing up to 12,000 pounds.

Six high-resolution positioning and tracking cameras automatically monitor vehicle height on the li . Robotic frame movement provides e cient use and alignment reading accuracy to 0.02 degrees for precise alignments.

CEMB USA has released its Argos Drivethru inspection system that allows dealerships to “quickly inspect incoming vehicles in a matter of seconds,” says Irvan Serrano, product specialist, CEMB USA.

CEMB USA’s Argos Drivethru inspection allowssystemtechs to “quickly CEMBofclesincominginspectvehi-inamatterseconds,”sayofcials.

e Q.Lign was rst released in Europe in early 2021, according to Gary Palmer, manager, Base USA Corp.

e li can be used to perform four-wheel alignments from 106 inches to 158.5 inches and two-wheel alignments up to 163.5 inches.

“ e Argos Drivethru gets its whole job done in a matter of seconds without using traditional clamps, targets or sensors,” says Serrano.

e Argos Drivethru performs a complete wheel alignment check that includes steering centering, toe and camber readings.

Coverage is available for U.S., Asian and European vehicles, 1996 and newer.

MTD September 202268

“Q.Lign is standard-supplied, with four tire-grabbing wheel clamps without any contact to the rim for ultimate protection,” he says.

e set-up of Q.Lign leaves the front of the alignment bay clear. Pods can be stowed away, providing full access to the li .

“ e D4-12A comes with free- oating, heavy-duty turnplates and rear slip plates built right into the non-skid runways, with adjustments for various tread widths,” say BendPak o cials.

“A diagnostic report is then generated to help increase the sales of alignments and contribute to overall customer satisfaction.”

In addition, steering wheel lock, wheel chocks and one-year limited warranty are included, according to Autel o cials.

“ e three arms also provide a secure grip on the wheel to provide highly accurate measurement results. Alignment results can be obtained in less than 60 seconds.”

BendPak’s Dannmar brand D4-12A alignment li can be used to perform two- or four-wheel alignments and general service work on cars, SUVs and light trucks weighing up to 12,000 pounds.

Base USA Corp. (Accu-Turn)’s Q.Lign is a web-based wheel aligner made of two battery-powered, fully mobile sensor heads.

Base USA Corp. (Accu-Turn)’s Q.Lign is a web-based wheel aligner made of two battery-powered, fully mobile sensor heads that can be attached to the side of any wheel alignment rack. ey also can be placed on the oor for quick checks.

Auto service

TEXA USA’s Radar Camera Calibration System 3 uses a miniature, on-board PC and a 75-inch 4k monitor.

• 3D Mobile Wheel Alignment System

Hunter Engineering Co.’s updated WinAlign 17.1 system provides fast readings, pre- and post-alignment graphic printouts and other bene ts.

• Fully automatic. Beam can be moved up and down

• Equipped with Wheel lift cart and a 12" display screen that shows the underside of the wheel when changing the tire

Photo:TEXA USA

• Leverless Center Post. Rim size up to 30"

Photo: Hunter Engineering Co.

• Dual display screens

• Fully Automatic. Super easy to operate

• Compatible with all car lifts including 2 post lifts and mid-rise scissor lifts

• Shortest distance of rolling run-out compensation in the industry, no need to wait during rolling

RAVAmerica says its TD 2.0 Smart Aligner “works for every shop, no matter the surface or lift type.” withsystemtablet-basedThecomesadatabase of vehicles that can be updated.

Photo: RAVAmerica

69www.ModernTireDealer.com

New so ware also provides two bene ts for Hunter Quick Check Drive and Quick Check Commercial unmanned inspection system

Respondents reported that the average ticket for an alignment at their locations totals $104.49. Pro t margins on alignments equal 75% on average, according to dealers — the highest pro t margin of all auto service work listed in the study.

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e WinAlign17.1’s second bene t is dual license plate capture, giving customers the ability to track the tractor and trailer as separate assets.

every shop, no matter the surface or li type,” according to RAVAmerica o cials.

Approximately 79% of respondents to MTD’s Tire Dealer Automotive Service Study say they offer alignments at theirWhenoutlets.asked how many alignments they perform each month, respondents said 90 on average — making alignments the third most-performed service, behind oil changes (205 times per month) and tire pressure monitoring systems (120 times per month.)

MTD September 202270

“The drive-on alignment lift is not required, so there is more space saved and less of an investment made,” says Nick McCullough, president, RAVAmerica.

Alignment by the numbers yields average margin, say

dealers

e system is two post li -compatible “without the use of tables,” can be used “o the oor,” can be taken to the parking lot and is a “complete, four-wheel alignment system measuring the full gamut of alignment angles.”etablet-based system stores on the wall, comes with a complete database of vehicles that can be updated online and o ers a wide range of other features.

“Simple and easy to use, the RCCS3 clears considerable workspace in the shop and simpli es operator work ow,” say TEXA o cials.

“

75%

Auto service

Coverage for

TEXA USA’s Radar Camera Calibration System 3 (RCCS3) uses a miniature, onboard PC and a 75-inch 4k monitor, both synchronized with the company’s so ware to digitally display automatically positioned targets based on vehicle selection.

“First,customers.17.1bridges the gap between passenger vehicle and heavy-duty inspection systems by measuring those trucks too heavy or wide for the passenger tread system, but

e RCCS3 has several features that allow the operator to perform microadjustments and align the unit easily.” ■

Service

customer portal that displays results, return on investment, training information and more.

RAVAmerica, the United States division of Ravaglioli SpA of Italy, o ers the RAVAmerica TD 2.0 Smart Aligner, which “works for

not tall enough for the full HD system,” say Hunter o cials.

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The hours we spent pulling reports, merging them, applying formulas and reformatting seemed endless.

At the risk of making most everyone in the tech space pushing a program or product cringe, I’d like to reintroduce a nostalgic topic.

ne of the most significant contributors to success is the tools we provide our teams. There’s no doubt that the technological progress we’ve seen in the last five to 10 years has been much needed and a large contributor to some of that success.

The time and effort spent working and reworking the scattered data to drill down into a given challenge or issue often was a job in and of itself.

While there are numerous advantages to the aforementioned advances, drilling down into reports the old-fashioned way develops a certain set of skills.

Some learn best by listening, some by seeing and others by doing. Any combination of those three styles greatly improves the chances of understanding.

That said, while most of us likely wished for a future of automated processes feeding us canned reports, we likely didn’t always give credence to the value of our efforts.

While our industry sometimes pales in technological comparison to some other industries in the retail space, textto-pay and digital vehicle inspections have been effectively integrated into many tire dealerships’ operations.

Have your people mine their own data and report back up to you.

Ask for their feedback on what data they really need and how they suggest it should be produced and distributed.

ENCOURAGE YOUR PEOPLE TO DIG DEEPER

And take the time to think through your reporting systems andRethinkstructure.how giving your tradesmen, which is what we in the retail tire and auto service business ultimately are, the tools and freedom to contribute to a meaningful report system.

Using data to spot trends in your business

2. Never produce and distribute reports that don’t involve a regular, concerted conversation. Make the data intention ally designed to solve a specific goal or set of goals. You don’t need to spend hours discussing reports, but you should be focusing on what the report is saying and why the data says what it says.

Automation and ease of access to and customization of sales reports certainly help.

Each of your data challenges are different. Those who excel at becoming experts on gathering and presenting sellout and shop management data know exactly where this discussion is going.

While I’m often reluctant to advise making reports based on other reports, the reality is that becoming an expert — or even an amateur expert — on any given topic takes a concerted effort.

3. Translate your data into actions and behaviors. Focus on what the data is saying and what can be done between now and the next meeting.

TEN Insights

As I have mentioned, it’s up to you to fill the toolboxes of your team members the best you can.

Randy O’ConnorBy

Afterall, we’re tire people. Tinkering to solve problems is in our DNA! ■

The minutes, hours and days we used to spend manipulat ing and presenting data also doubled as an exercise in truly understanding the systems at our disposal and the issues at hand.

I encourage you to educate and empower your teams to dig a little deeper into data using these easy steps:

Most everyone in tire dealership management or sales — Generation Y age and older — can recall the days of old, where the data we had was simple and effective, but not always quite enough to make innovative decisions.

Finally, give your people the time and space to explore the various data sets that are available.

All of the mistakes, failures and successes woven into those endless hours are what made us experts.

O

And there is no question that reports provided by the leading point-of-sale software suppliers are better than in years past.

1. Stop spoon feeding reports. Pushing data “down” may have its time and place, but I’d bet that some of those people who are reading the reports — if they even really read them — don’t have a full understanding of what’s in them, how the data was compiled and what the ultimate goal of having the data is. A simple solution that works well is to have your people mine their own data and report back up to you. I promise you they’ll learn much more quickly that way.

Randy O’Connor is the executive director TEN (Training and Education Network). He can be reached at roconnor@10missions.com. For more information, see www.mtdten.com.

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quality education, gender equality, clean water and sanitation, industry innovation and reducing inequality.

Now that might apply in some instances for some companies — think Disney — but it’s a far cry from what’s going on with ESG in the tire business.

WHY ENVIRONMENTAL, SOCIAL AND GOVERNANCE MEASUREMENTS AREN’T GOING AWAY

These executives have recognized that there is a need for action to reach these goals and that their businesses have the resources and reach to be part of the solution. But these companies also own brands that they want consumers and employees to identify positively with. So they are actively looking to achieve an environmentally sound, ethical natural rubber supply chain; implement sustain able procurement practices and establish sustainability measurement in their own supply chains; decarbonize their operations; ensure a safe, inclusive work environment; support equal opportunity for employees; develop science-based solutions for tire road wear particles; accelerate sustainable mobility through intelligent tires; and enhance low-carbon circular solutions.

So if GM is a customer of yours and these things matter to GM, then they better matter to you.

So most large and publicly traded companies have responded to this sizable “customer demand” by implementing policies and procedures to both measure and disclose how they meet ESG objectives. This includes tire manufacturers.

At this year’s Traction Summit — which was organized by Smithers, an independent, third-party provider of tire testing, consult ing, information, and compliance services — the topic was sustainability and ESG.

Michael McGregorBy

Brands can’t afford the bad press that politicians can. ■

Brands can’t afford the bad press that politicians can.

The Tire Industry Project (TIP) looked at the 17 global sustainable development goals (SDG) developed by the United Nations and decided to focus on eight goals as priorities that the tire sector could impact. These include decent work and economic growth, responsible consumption and production, good health and well-being,

Representatives from several tire manu facturers either attended or presented at the conference, which was held in Charlotte, N.C., in late-July.

I learned at the Traction Summit that

Mary Barra, GM’s CEO, has said that the auto manufacturer aspires to be the most inclusive company in the world.

his next election cycle, you’re go ing to be hearing a lot from some politicians about the application of environmental, social and gov ernance (ESG) metrics in busi ness. They’re already equating ESG with what some people call “woke capitalism.”

ESG measurement developed in the investment community. It looks at how businesses deal with environmental, social and governance challenges.

Mergers and Acquisitions

One reason for this is that some supply tires to the automotive manufacturers and all of these companies incorporate sustainability and ESG goals in their own businesses.

Look at General Motors (GM), which also presented at the Traction Summit. In its 2021 Sustainability Report, GM lists its priorities as lowering carbon emis sions to reduce climate risk; designing for the environment by recycling and reducing waste; advancing transformative technologies like electric and autonomous vehicles; developing a talented, diverse and inclusive workforce; upholding human rights; supporting supplier responsibil ity; and ensuring responsible and ethical business governance.

Many politicians’ only objective is win ning the next election, so they say and do whatever it takes to win.

If you remember that these CEOs rep resent global brands, you’ll understand that they have consumers and employees all around the world who care about these things. They also must answer to govern ments in these countries and around the world who may want to regulate these issues. On behalf of their brands, they need to be proactive and part of evidence-based solutions to some of these big challenges. Global tire manufacturers and brands can’t afford to focus only on what some politicians in the U.S. want.

T

ESG arose because investors, such as pension funds, hedge funds, endowments and retail investors of all types — basically, the customers for a company’s stock — have been demanding information so they can channel their investments to companies that they feel are more socially responsible, sustainable and profitable.

And ESG is very much a huge, global phenomenon. ESG assets may hit $50 trillion worldwide by 2025 — comprising a third of all assets under management, with Europe comprising half and the United States poised to overtake that this year. And Asia is coming on strong.

many tire manufacturers have some sus tainability and ESG goals that they are looking to meet.

But this doesn’t mean tire manufacturers have not been embracing ESG in various ways on their own. In 2005, the CEOs of 10 global tire manufacturers banded together to research potential human health and environmental impacts of tires.

ESG in the tire industry explained

Michael McGregor is a partner at Focus Investment Banking LLC (focusbankers.com/automotive/tire-andservice). He advises and assists multi-location tire dealers on mergers and acquisitions. For more information, contact him at michael.mcgregor@focusbankers.com.

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The pressure on counter staff and salespeople is heavy. Under that duress, many employees develop internal rules to manage or mitigate the pressure, such as only one walk-in oil change per hour, flats are drop-off only and service work after 3 Sometimespm.

Business Insight

Sometimessolutions.evenquestioning

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Just a typical day at the shop!

How to handle customers who want help ‘right now’

these rules rile customers who find themselves not fitting into the mold of how the dealership handles the variety of tire and service problems thrown at it on a daily basis.

If you are a reputation-based business — in other words, a business that has a loyal following and has been around the neighborhood for a number of years — I’m going to let you in on a little secret.

If the customer comes in demanding to wait for a 30-minute oil change even though your people are clearly very busy and your salesperson folds because he is afraid of an escalation, just wait until the oil change isn’t done on time.

The real key here is to get the customer to see there are multiple ways to solve their problem.

Without empathy, the options you provide could come off as cold and mechanical, which will elevate a customer’s frustration level. You must connect first before offering alternative

MAKE SURE YOU PROVIDE OPTIONS — AND SOME EMPATHY

When customers are panicky, it’s easy to rush to conclusions. But don’t forget to pause and empathize first. ■

I

This scenario plays out all day long in thousands of tire dealerships across America.

Secondly, you have to start doing what’s right for your business and balance that with the needs of the customer. Remember, the flat repair is an emergency for the customer because it’s unexpected. They want the problem to go away so they are going to be forceful in communicating that urgency.

You need to create additional options for the customer that they can’t see or understand yet. Tell the customer, “I understand how frustrating getting a flat first thing in the morning is.” Then provide the customer with his or her options. Say, “I can quickly put your spare on so you can get to work on time and will text you later when we find out what’s wrong with the tire.” Or you can say, “You mentioned you’ve noticed a slow leak. Let’s put some air in it now and schedule the best time to take a closer look.”

the customer on possible options — such as, “Is there anyone you could call to pick you up?” — is seen as you trying to work out some kind of resolution.

As a professional, it’s your job to find the best solution for the customer that your business can successfully and profitably replicate time and time again.

You don’t need to bend over backwards for every little job that comes through the front door. However, there are a few things you do need to do.

We also have employees to watch. They struggle to keep to a process, whether it’s a company rule or self-taught. There are customers waiting patiently in line to be serviced. Then the phone rings. Multiple lines light up. There’s a service technician loitering on the back side of the counter, wondering aloud where their parts are that were ordered an hour ago.

Dennis McCarronBy

magine hanging out in the waiting area of a typical tire dealership and observing the ebb and flow of customers, along with the routines of its employees.

Some customers are organized and prepared. (Maybe they even had appointments?) Some are caught off-guard with unexpected life disruptors, like a flat tire on the way to work. Still other customers wander in — oblivious to the volume — and ask if they can wait for an engine diagnostic because “the light just came on and I’m going on vacation.”

First let’s assess the situation. Are you constantly strug gling to handle the volume of flat repairs all day long or is it a spotty problem here and there? If it’s a constant stream, you have to figure out why.

The worst thing you can do as the owner of a reputationbased business is not commit to your promises.

Dennis McCarron is a partner at Cardinal Brokers, one of the leading brokers in the tire and automotive industry (www.cardinalbrokers.com). To contact McCarron, email him at dennis@cardinalbrokers.com.

Are you the cheapest flat repair in town? Raising your prices will control some volume. Or maybe everyone in town knows that you will drop everything you’re doing, including that $700 brake job, to pull in a flat repair “right now” because some customer is in a hurry?

It is up to your salespeople to recognize that urgency and react professionally. That means offering empathy and options, which leads to my next piece of advice.

The worst thing you can do as the owner of a reputation-based business is not commit to your promises.

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Who knows? You may even put your logo on the door of your own Ford Mustang Mach-E or Ford F-150 Lightning and place charging stations in your parking lot.

Today, it’s about reducing carbon in the atmosphere. Honda was responsible for helping me and a lot of others see a brighter, better and cleaner world where cars and other vehicles are not burning fossil fuels.

Take the time to learn about EVs. Drive them so you know what your customers are experiencing and can offer the right products and services as you grow your own knowledge.

UNDERSTANDING ‘WHY’ WILL HELP YOU WIN THEIR TRUST AND BUSINESS

an we save the planet one electric vehicle (EV) at a time? Whether you are working toward a more sustainable future or not, most people who drive pure EVs are trying to do just that.

If that new fridge is just as good, not overpriced and will save them money on the electric bill, they will make the investment. With EVs, it’s a bit more complicated. But the spirit is still the same.

Concerns around climate change are not new. When climate change matters to a buyer of anything — a TV, a refrigerator, a washing machine, etc. — they will do the math.

Now are there really that many people who will spend more upfront for an EV? Do you already have customers who want the best tire? Will they spend the money to keep their family safe? Yes on all of the above, if they have the funds.

Will EVs catch on? They already have. EV sales grew by 85% from 2020 to 2021 and that is remarkable in the context of overall light-duty vehicle sales, which increased by only 3% during the same period.

Your EV tire customers all have a similar story. That story plays over and over in their lives. Connecting their story with your story is what makes sales happen.

Who knows? You may even put your logo on the door of your own Ford Mustang Mach-E or Ford F-150 Lightning.

We saw pictures of smog in Los Angeles and photos of smoking tailpipes. We learned about lung disease and asthma and were told by the EPA what was coming.

EV Intelligence

What motivates electric vehicle customers?

At the time, the Honda Civic was coming to America. As a Honda motorcycle mechanic, I was not too thrilled, but I went.

The EV customer population is growing and EV customers will need tires more often than the drivers of internal combustion cars and light trucks. That’s good news — if you don’t drive these new customers away.

The U.S. Environmental Protection Agency (EPA) was cre ated in 1970 and by 1972, the automotive industry was either fighting new EPA regulations or designing engines to comply. Honda was doing the latter.

C

Craig Van BatenburgBy

How did I get started in embracing EVs? In the fall of 1972, I was “voluntold” that I was going to Cherry Hill, N.J., for Honda service training.

My company, the Automotive Career Development Center (ACDC), has been at this high-voltage thing for quite some time.

In 1977, I opened up Van Batenburg’s Garage, which special izes in Honda service. ACDC was opened in 1999. I currently run that

ACDC owns a Nissan Leaf, a Kia Niro EV and a Tesla Model 3, plus a Chevy Volt plug-in hybrid.

It wasn’t pretty. The job in front of us was clear — clean up the air. So I drank the Kool-Aid and never looked back.

At Honda school, the first four hours of our first day had nothing to do with learning how to work on the Civic. We all went back to science class and learned about hydrocarbons, carbon dioxide and nitrates of oxygen.

Craig Van Batenburg is the CEO of Van Batenburg’s Garage Inc., dba Automotive Career Development Center (ACDC), which is based in Worcester, Mass. A 50-year automotive service industry veteran, Van Batenburg provides training for facilities that service — or want to service — electric and hybrid vehicles. For more information, see www.fixhybrid. com or email him at craig@fixhybrid.com.

Whenbusiness.theHonda Insight hybrid went on sale in 1999, I bought one and still have it. Since then, cars have become even cleaner and safer — unfortunately, drivers have not — and my passion for a cleaner planet never died.

(Something about needing to make payments on my Toyota Hilux and an apartment factored into the decision.)

If your regular customer or their family member buys an EV, are you ready for them? You as an owner — plus your managers and sales staff — need to embrace these people. When you do, the customers you take care of will see that you speak their language.

It could happen. But make sure you understand what motivates EV owners first. That’s the first step in earning their trust and business. ■

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Data from the U.S. Tire Manufacturers Association (USTMA) showed shipment increases in the first quarter — up 3% for passenger and light truck tires — but the numbers have started to slip. And both consumer tire and medium truck shipments were down in July, said Leeper.

Joy KopchaBy

T

Leeper was among the executives who provided an update during Falken’s annual dealer meeting in Puerto Rico. He said consumers are spending less and paying more for fuel.

SRNA is focusing on Falken WILL CONTINUE TO PLAY KEY ROLE IN BRAND’S GROWTH

DEALERS

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Last year’s product shortage worries have transitioned to concerns about higher inventory levels.

Through May of this year, consumers were driving more, but miles driven have since started to level out. “We’re starting to see miles driven go down.”

Focus on Dealers

ire dealers who have learned to adjust to the industry’s uncertainties of the past two years aren’t off the hook yet. Matt Leeper, vice president of sales for Sumitomo Rubber North America Inc., recently told a group of Falken dealers that the latest economic conditions are changing the game again.

Matt Leeper, vice president of sales for Sumitomo Rubber North America Inc., says the company’s focus on its Falken brand revolves around the dealers who sell it and the distributors who stock it. “Our focus will continue to be the dealer.”

Photo: MTD

From April to July, USTMA shipments were off 9% in consumer tires compared to 2021, which was notably a strong year. In commercial truck tires, strong market conditions continued through April, which was up 11% year-over-year. But growth slowed in May and June to a 2% gain, followed by a 3% decline in July.

Focus on Dealers

The Ziex CT60 all-season tire will have 14 sizes — all designed for large CUVs and SUVs.

Two sizes of the RI151 joined the lineup and are being produced overseas: 245/70R17.5 and 425/65R22.5.

By the end of the year, two new sizes of the WildPeak A/T 02 are expected to be available: 235/65R16C and 225/75R16C. And two more sizes, 195/75R16C and 185/60R15C, are coming in 2023.Inthe world of medium truck tires, the company’s plant near Buffalo, N.Y. is producing several new TBR products and sizes: the BI850 Plus 225/70R19.5 and, coming in September, size 245/70R19.5; the SI011 11R22.5, and coming in July 2023, 11R24.5, 295/75R22.5 and 285/75R24.5; and the RI151 Plus 225/70R19.5 and 265/70R19.5.

The Winterpeak F-Ice 01 is receiving 15 sizes, with a focus on more coverage for trucks and SUVs. One of those sizes, 275/60R20, has been delayed to 2023.

ALL EYES ON FALKEN

In addition to those two new passenger and light truck products, the Falken brand lineup is growing in 2022 thanks to new sizes in both consumer and commercial applications.

In addition to advancing its product lineup, Leeper said SRNA has 13,000 dealers signed up for its Falken Fanatic associate dealer program. Those dealers sell about 450,000 units a quarter.

81www.ModernTireDealer.com

SRNA is answering that pressure with full focus on its Falken brand, without any distraction from its Ohtsu brand. The company is adding sizes to products — for everything from the all-season Ziex CT60 to the Winterpeak F-Ice and WildPeak A/T Trail — and is bringing new tires to market on both the commercial side, as well as a new ultra-high performance (UHP) tire.

Brennan said the tire “is a huge leap for us in performance level in ultra-high performance.”

SIZE EXPANSIONS

A big piece of that can be attributed to the resurgence of imported tires. Leeper said imports “are way, way, way up,” and they’re grabbing a lot of shelf space. Passenger tire imports were up 29% through May, he said, while light truck shipments were up 18%. Truck tire imports increased by 25% through the first five months of 2022, he told dealers.

TheAS4.tire will launch with 61 sizes, with 24 additional sizes already planned for a full 85-size lineup. The sizes also match the needs of Tesla and cover 82% of all electric vehicle (EV) fitments in use today.

The FK460 does share some attributes with the Falken Ziex ZE960, including 29 common sizes — though there are some load index differences, according to Brennan, who added that the ZE960 will remain in the Falken portfolio.

It’s designed for coupes and sedans and is more of a standard commuter tire, while the new Azenis FK460 has CUV fitments and offers characteristics for a more “spirited” driving behavior.

“We are now laser-focused strictly on (the) Falken brand and holding Falken brand share. So you know if you’re going to invest in Falken, we’re investing in Falken. There is no question that is the brand we’re going to run with.

Three of those new sizes have been delayed until 2023: 275/55R19, 275/50R22 and 285/45R22.

Leeper said that kind of boom in imports is “putting a lot of pressure on brands, especially the tier-two brands.”

SRNA works to differentiate itself from other tire manu facturers by having “a huge dealer presence,” according to Leeper. That means the company has committed a large team to signing up and serving its Fanatic program dealers. (Leeper said there are 30 SRNA team members who focus on signing up Fanatic members.)

SRNA will complete its Falken WildPeak tire lineup in 2022 with the introduction of the WildPeak R/T, a rugged tire with heavy-duty construction designed for lifted trucks and SUVs.

The WildPeak A/T Trail size offerings are expanding from 30 to 45 options, ranging from 15-inch wheels all the way up to the 21-inch wheels — in size 265/45R21 — that target the 2021 Blazer, Velar and Atlas vehicles. The new sizes are expected to arrive in the North American market beginning in September.

Beginning in September, tire dealers will be able to be able to start ordering the newest Falken UHP tire, the Azenis FK460.

“We will continue to put our resources into marketing to the dealer versus the consumer. We don’t have enough time and money to ever impact the consumer. Our focus will continue to be the dealer.”

Falken’s wildly popular WildPeak A/T3W is adding one more size, for applications like the Ram ProMaster. The new size, 225/75R16C, is on its way to the U.S.

Signing those dealers also requires SRNA’s distributors to stock the right mix of products and service those retail dealers well. Leeper said it’s just as important that the distributors are good stewards of the program.

The tire is an all-season product for sport coupes, sedans and CUVs. It will come with a 50,000-mile warranty (25,000 miles on staggered fitments) and will offer “light” snow capability.

One critical factor is tire dealers are managing what Leeper called “extremely high” inventories.

“We have a lot of people in the field. We believe the fight is going to be won on the street.”

Rick Brennan, SRNA vice president of marketing, said the tire’s fitments cover trucks that tow, haul, work and crawl. Applications include a Ford F-250 Tremor towing a trailer and a Ram 2500 PowerWagon, plus the Jeep Gladiator, Ford Raptor and Ram TRX.

Brennan said SRNA’s goal is to “cover 100%” of the EV market. By the middle of 2023, coverage will extend to 90% of that market.

The first 18 sizes are expected to arrive in the U.S. by November and 32 additional sizes will follow by the first quarter of 2023.

NEW ALL-SEASON UHP TIRE

The Y-rated tire will offer balanced wet and dry performance. And Brennan said it was designed to compete against the Continental ExtremeContact DWS06+ and the Michelin Pilot Sport

He wants to continue to build off of the momentum he is generating with his Big O stores.

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“Now, I am 32 and I feel like I’ve got a lot of experience for my age, but I never let my age deter me from anything.

AT 32, STEVE TOWERS IS AN ‘OLD HAND’ AT BRINGING STORES UP TO SPEED

“I love the tire industry and being an entrepreneur. People ask me all the time why I don’t go into another industry, but I believe in doing what you’re really good at doing.”

presence in the rapidly growing city, which he believes is an “underserved market” for the“Aprogram.lotofour competitors are there, but we don’t have a very big footprint, so I saw it as an “Whenopportunity.Istartedlooking to expand, I asked myself, ‘Where do I want to grow? How do I want to do it?’ Indianapolis was only two hours up the road and I’m used to managing stores in five different states, so it seemed like a good fit.”

‘AGE IS JUST A NUMBER’

teve Towers, a 32-year-old Big O Tires LLC franchise owner, has been a part of TBC Corp.’s Big O Tires program for only a year, but has already expanded to eight locations across Indiana, Kentucky andDespiteTennessee.hisage, Towers — who recently opened another Big O location in India napolis, Ind. — has turned around several struggling auto repair facilities.

Turn-around artist

THE IMPORTANCE OF SERVICE SALES

“I’m pretty well-seasoned and estab lished in this industry. I believe age is just a Owningnumber.”and running tire stores is “all I know and when I was younger, it was all I knew,” he says. “It’s fun, it’s exciting — all the interactions with people. It’s just something I’ve always enjoyed doing.

Towers says his age has never impacted his work negatively, though he used to believe he had to work harder when he was younger to be taken more seriously by customers. He believes his early start provided him with an advantage.

Steve Towers recently expanded into the Indianapolis, Ind., market with this new Big O store. “A lot of our competitors are there, but we don’t have a very big footprint, so I saw it as an opportunity,” he says.

Towers later bought more Midas stores. Last May, he was met with an offer to get back into the tire industry.

Before buying his first Big O store, Towers was the franchise owner of 20 Midas stores across the Southeast. His first location was a Midas store in Dothan, Ala., that had been closed for more than 10 years.

“I had the opportunity to purchase the Big O store in Murfreesboro, Tenn.,” says“ItTowers.wasa struggling location — only doing about $40,000 to $50,000 a month in revenue. I came from the tire business — working at a Tires Plus store back in high school before buying Midas locations — so I was really excited to get back into the tire Towersbusiness.”foundhimself in a unique situa tion. He still owned his 20 Midas locations, but now owned a Big O franchise location, so he had two brands.

tions) that was too good to pass up. So I said I would sell them and go all-in on Big O. I love the tire business. I really missed it.”

Towers says the first thing he looks at whenever buying a struggling dealership is its auto service sales. He has found that a higher service sales rate leads to a better-functioning store.

The ideal ratio of tire sales to service is 50/50, according to Towers.

Towers and his family live in Louisville, Ky., which is about two hours away from India napolis. This is one reason why he decided to open another store in Indianapolis.

S

Photo: TBC Corp.

“I tell people all the time, ‘Do what you love, be great and do it really well and you’ll succeed,’” he says.

Towers expects the store to generate about $190,000 next month.

Focus on Dealers

Maddie GehringBy

A NEW MARKET

Another reason is the nature of Big O’s

“I got an offer (to sell the Midas loca

The first month under Towers’ owner ship, the Murfreesboro location did around $150,000 compared to its usual $50,000 per month revenue.

BACK TO THE FUTURE

“You can sell a lot of tires, but you’ve got to sell the service to go along with it, so that’s something we look at — day one — in our stores and try to correct right away.”

“I’ve purchased a few Big O stores that have been running at 25% to 35% service. You can make a big impact on (stores’) bottom lines when you can get them up to 50%However,service.”Towers understands that an even 50/50 split is hard to achieve and keep consistent. At his Big O locations, he says he is probably running about 45% service to about 55% of tire sales.

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• Tire pressure sensors present and operational

Mercedes Benz E- Series (213 Chassis) - 2017-21

e four tire pressure sensors send radio messages to the TPMS control unit every 30 seconds while driving at a speed greater than 20 esekm/h.radio messages contain the pressure, tire air temperature, individual serial number and status information. A er the trip starts, the sensor positions are identi ed automatically within the rst 10 minutes. For this, the correlation of the ABS-wheel pulse counters with the signals from the tire pressure sensors is evaluated.

A colored marking for the a ected tires is shown on the instrument cluster depending on the given load in yellow or red. Tires at temperatures close to the limit are shown in yellow. Tires that exceed the limit are shown in red and a warning message appears.

• Manual restart;

Tire pressure sensors: e tire pressure sensors are screwed onto the inner wheel side of each tire with a tire valve made of metal.

Tire pressure monitor: e TPMS monitors the air pressure in the individual tires by comparing the measured pressure with a previously stored reference pressure. If a relevant loss of pressure occurs, a warning message is issued to the driver, when possible with the speci ed location. e type of warning varies depending on the amount of pressure loss. Data such as tire temperature, outside temperature, vehicle speed and kilometer reading are also taken into account for the warning logic in the event of pressure loss.

e guided manual tire pressure reduction causes the tire pressure sensors to transmit a data log by releasing air one by one. e tire pressure monitor control unit can then save the individual serial numbers of the sensors and identify the correct wheel position.

e trigger tool causes the tire pressure sensors to transmit a data log. A warning message is canceled if the following events occur:

If the “tire overheated” warning message is still shown a er a period of two minutes, a prompt is shown to reduce the speed and a warning tone is issued.

If the tire pressure monitor control unit repeatedly receives a low battery status from at least one tire pressure sensor, a fault is logged.

• Overspeeding from 15 to 20 km/h or a change in tire pressure greater than 10 kPa

control unit remains active for another 19 minutes and may receive signals from the tire pressure sensors by radio frequency. e network interface changes to sleep mode during the run-on period.

Diagnosis: To teach-in tire pressure sensors, the process can be started using XENTRY Diagnosis COM Kit in the “control unit adaptations” menu and “write wheel electronics identi cation number” submenu.

• Successful automatic ll detection;

• e warning threshold of the so warning is de ned as follows:

TPMS

e TPMS monitors the tire pressure under various variables. If a relevant pressure loss occurs, a warning message is issued to the driver, where possible, also specifying the location. Function requirements:•IgnitionON (circuit 15)

MTD September 202284

e tire pressure monitoring system (TPMS) control unit is located externally on the underbody, in the vicinity of the vehicle’s driver or front passenger seat.

Monitoring of tire temperature: e sensors send the tire pressure as well as the tire temperature. e temperature warning is only issued at high speed, generally greater than 180 km/h and upwards.

As soon as the speed drops to less than 100 km/h, this message disappears and the tire temperature display is shown. With every radio message, the tire pressure sensors transmit a battery status signal in 10% steps, thus providing an indication of the remaining battery life. For this, the tire pressure sensor takes into account the energy consumption for pressure, temperature and motion detection, as well as the self-discharge of the battery.

To enable the data to be read, at least 30 kPa of air must be released. A trigger tool (MB3000) may be used.

When the ignition is switched o , the tire pressure monitor

• Filling to speci ed pressure;

AVOID NON COMPLIANCE FINES BY USING DIGITAL CIMS TIRE REGISTRATION ON THE ITS600! •PLUS:PERFORM TPMS DIAGNOSTICS • 1-SENSOR PROGRAMMING • VEHICLE RELEARNS ITS600 PAPERCHASE DIGITAL TIRE REGISTRATION - DOT COMPLIANT THEEND 1. Select “TIRE REGISTRATION” on the ITS600 Main Screen 2. Select the Tire Manufacturer 3. Type in the DOT Number in Correct Format and the Quantity 4. Tap “SUBMIT” and You’re All Set! ONTOOL DIGITAL REGISTRATIONTIRE SUPPORT: 1.855.288.3587 EMAIL: USSUPPORT@AUTEL.COM | WEB: AUTEL.COM VIEW MARKETING MATERIAL: ISSUU.COM/AUTEL2 FOLLOW US @AUTELTOOLS

Automatic teach-in process for tire pressure sensors of TPMS control unit: When the ignition is o , the tire pressure monitor control unit remains active for another 19 minutes and may receive signals from the tire pressure sensors by radio frequency.

In the rst 10 minutes of driving, the data telegram is always sent in relation to a certain angular position of the wheel. It states the time elapsed between when a certain wheel angle was reached and when the data telegram was sent.

When the ignition is switched back on a er a leak is detected, the message “check tires” appears on the instrument cluster.

If the tire pressure monitoring system control unit has been replaced, the XENTRY Diagnosis COM Kit must be used to perform the guided “commissioning” routine.

Leak detection: If there is progressive pressure loss when driving faster than 20 km/h, it is assumed that a tire is defective. In this case a warning is triggered even before the criterion for the hard warning is reached. e warning occurs, at the latest, 120 seconds a er the start of a pressure loss and is displayed in the instrument cluster as the warning message “Caution Tire Defect.”

Function sequence for warning message: e control unit TPMS continuously evaluates the data telegrams of the tire pressure sensors.

• So warning (correct tire pressure) greater than 14%;

If a relevant pressure loss is detected at a tire, the tire pressure monitor control unit forwards a request to display a warning message over the user interface CAN to the instrument cluster. e instrument cluster displays a warning message and actuates the tire pressure monitor warning indicator.

A new tire pressure sensor is automatically taught a er a maximum driving time of nine minutes.

• Pressure loss greater than 14% for eight minutes

MTD September 202286

• Pressure loss greater than 14% for 18 min (U.S. version)

Function sequence for leak detection: If while driving, a progressive pressure loss is detected in a particular time section (gradient), a tire defect has to be assumed. In this case, a warning is triggered even

A er approximately two minutes of driving and a successful plausibility test, the new tire pressures are automatically adopted as reference values. A pressure di erential between the right and le wheel of more than 17% is deemed to be implausible.

e measuring range for the tire pressure extends from zero to 637.5 kPa. e TPM [RDK] comprises the following subfunctions:

TBE200 INTELLIGENT MEASUREMENTSLASER TIRE TREAD 0.1MMMEASUREMENTBRAKEMEASUREMENTDEPTHDISCWEARLASERACCURACYTOUCHSCREENDISPLAY INDEPTH SERVICETIRETBE200 SUPPORT: 1 855.288.3587 FOLLOW US @AUTELTOOLS VIEW MARKETING MATERIAL: ISSUU.COM/AUTEL2 EMAIL: USSUPPORT@AUTEL.COM | WEB: AUTEL.COM

Automatic ll detection: Automatic ll detection is performed if, at the start of a journey, a change in pressure of more than 20 kPa was detected. For comparison, temperature-compensated and filtered pressure values are drawn on and compared against the values for the last journey.

Together with a tire pressure warning message, the yellow tire pressure warning lamp in the instrument cluster lights up. It also lights up at the next ignition cycle until the warning message is canceled.

eTPMS monitors the air pressure in the individual tires. A previously stored speci ed pressure is used as a comparison value for the front wheels and rear wheels. If a relevant loss of pressure occurs, a warning message is issued to the driver, when possible, with the a ected location.

TPMS

TIRE PRESSURE MONITOR, FUNCTION

If a er starting a journey, the respective pressure matches the reference value again, the “check tires” display message disappears.

• Rapid pressure loss (caution tire defect) 20 kPa/min

A er a parking period of more than 19 minutes, the automatic detection and localization of the tire pressure sensors commences when the journey starts.

• Hard warning (check tires) greater than 20%;

Warning message: Pressure loss

Function sequence for tire pressure sensing: e tire pressure monitor (RDK) continuously monitors the tire pressure for all rotating wheels, while driving. e four sensors send data telegrams while driving every 60 seconds to the TPMS control unit.

ese data telegrams contain the pressure, the tire air temperature, the individual serial number and the status information (rolling direction, operating mode etc.).

e data is transmitted by radio to the tire pressure monitor control unit. e tire pressure sensors can automatically detect whether the wheel is rotating or stationary.

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MTD September 202288 TPMS

SERVICING PROCEDURES

For comparison, temperature-compen sated and filtered pressure values are drawn on and compared against the values for the last journey. After driving for about five minutes, the new tire pressures are automatically accepted. A pressure difference between the right and left wheel of greater than 17% is deemed implausible.

2. Call up “accept current pressure values as guideline values” menu in the mul tifunction display, under service and tire pressure.

1. Set correct tire pressure at wheels on front and rear axles; and turn on the ignition.

The tire should be demounted from the wheel using the tire changer manufacturer’s instructions. Follow the below tips to avoid damage during the process.

1. Unscrew valve cap, and detach tire.

5. Unscrew valve body from tire sensor.

The following testers are available to read the tire pressure sensors: MB 2000E and MB 3000. Tire pressure sensors from these manufacturers can be read: Continental (Siemens VDO). Huf (Beru); and Schrader.

6. Clean tire pressure sensor and clean the disk wheel in the area of the valve bore.

4. Switch off ignition.

11. Tighten collar nut on valve body.

12. Mount tire, screw on valve cap and restart tire pressure monitor. ■

before the triggering criterion for the hard warning is reached.

3. Remove tire pressure sensor with valve body from disk wheel.

When the ignition is switched back on after a leak has been detected, the tire pressure monitor warning indicator in the instrument cluster is initially actuated. If after starting a journey, the pressures match the specified value again, the tire pressure monitor warning indicator goes out.

• Whether or not the battery status signal (BAT) is transmitted can only be checked reliably if the air temperature inside the tire is above 10 degrees Celsius. The remaining battery time can only be read on the Huf (Beru) tire pressure sensor.

10. Insert valve body with freely moving tire pressure sensor from inside to outside into valve bore of disk wheel.

Information for this column comes from the tire pressure monitoring systems data in ProDemandR, Mitchell 1’s auto repair information software for domestic and import vehicles. Headquartered in San Diego, Mitchell 1 has provided quality repair information solutions to the automotive industry since 1918. For more information, visit www.mitchell1.com

9. Mount support ring and seal on valve body.

2. Unscrew collar nut from valve body and remove.

As a result of the manually-performed reduction in tire pressure, the deflation causes each tire pressure sensor to send a data log from which the corresponding wheel ID can be read out.

7. Detach label with identification number from sensor and place in service booklet.

Function sequence for automatic fill detec tion: This is conducted, when at the start of a journey at least two wheels have recorded a change in pressure of more than 20 kPa.

Function sequence for automatic teach-in process for tire pressure monitor control unit: Following an extended parking period of more than 19 minutes, the automatic detection and localization of the tire pressure sensors is started when the journey starts.

At the appropriate wheel position, a cluster forms at a given angle after a few minutes. The other three wheels deliver randomly distributed angular positions. Localization may be impaired on bumpy road surfaces.

The warning usually takes place at the latest 120 seconds after the start of the pressure loss of 20 kPa/min and is displayed as warning message “Attention tire defect.”

Tire Pressure Monitor RDK Messages

If the tire pressure monitor control unit is replaced, then use XENTRY Diagnostics to perform the “initial startup.” If tire pressure sensors need to be taught, it must be done using XENTRY Diagnostics in the “control unit adaptation” menu and the “write wheel electronics identification number” submenu.

4. Remove seal and support ring from valve body.

• Tire pressure sensors from the system manufacturer Continental (Siemens VDO) must bear the “DC” identification, otherwise they will not be recognized (NON DC PART).

• New tire pressure sensors cannot be read out because the tire pressure sensors do not send signals until a tire pressure above 3.2 bar has been applied.

For model 213 up to model year 2021 with code 475, the tire pressure monitor mes sages are shown on the instrument cluster. Depending on the warning message, the tire pressure monitor warning indicator flashes for 60 seconds and then stays on. The messages can be called up in the instrument cluster via the instrument cluster multifunction steering wheel button group (S163/1) in the “Service/Tire pressure” menu.

• Maintain a distance to other tire pressure sensors of at least 1.50 meters.

Parallel with the teach-in process, the TPMS control unit starts to automatically localize the tire pressure sensors. The TPMS control unit compares the data of each sensor with the wheel pulse counters.

TROUBLESHOOTING

A new tire pressure sensor undergoes automatic teach-in after a maximum of 10 minutes of driving.

A warning message is canceled when filling to specified pressure; successful automatic fill detection; or manual restart.

Side localization is conducted by evaluat ing the rolling direction, based on right-left information from the tire pressure sensors.

Tips to prevent errors when reading and evaluating the data:

RESET PROCEDURES

3. Confirm “accept current pressure values as guideline values.” A “tire pressure monitor restarted” message is shown on the instrument cluster. After a few minutes of driving the tire pressures are displayed and monitored.

If the trigger tool is used, the individual tire pressure sensors have to be triggered one after the other to ensure the corresponding data protocol is sent.

8. Replace valve body and valve element.

• Position tester exactly. The upper frontal area must be level with the valve on the tire.

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The wheel pulse counters deliver 96 pulses per wheel revolution, which can be converted into an angular position for the wheel. For each tire pressure sensor, the angular positions of the four wheels are entered in a histogram.

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Sentury Tire USA 17 www.groundspeedtires.com

TBC Corporation 31 www.tbcbrands.com

TIRE DEALER OF THE YEAR AD INDEX ADVERTISER PAGE WEBSITE

Myers Tire Supply 43 www.myerstiresupply.com

American Omni Trading 39 www.american-omni.com

EasyPay Finance 63 tiredealersenrollment.easypayfinance.com/

MTD September 202290

Aston Technologies 69 www.astontechnologies.com

GT Radial 87 www.gtradial.com

NetDriven 52 www.netdriven.com

Nexen Tire America Inc. 53 www.nexentireusa.com

Sutong Tire Resources Inc. 27 www.sutongctr.com

NationwideAffiliatedBridgestoneRetailerNetwork 79 www.affiliatedretailer.net

Schrader TPMS Solutions 29 www.schradertpms.com

Titan International Inc. 28 www.titan-intl.com

Aftermarket Auto Parts Alliance Inc. 71 www.hawaiigetaway2023.com

Bridgestone Americas 25 www.bridgestoneamericas.com

Mr. Tire/Big 3 Tire 89 www.mrtirebig3tirectd.com

Ad Index

Continental 70 www.ate-na.com

Yokohama Tire 23 www.yokohamatire.com

Maxxis Tires 9 www.maxxis.com

Zafco International 57 www.zafcointernational.com

ZC Rubber America Inc. 51 www.goodridetire.com

Falken Tires 73 www.falkentire.com

ZC Rubber America Inc. 7 www.arisuntires.com

Deestone 33 www.deestone.com

Blackburn OEM Wheel Solutions 61 www.blackburnswheelfinder.com

Tireco Inc. 19 www.milestartires.com

Cool Boss, a division of BendPak Inc. 13 www.coolboss.com

Carlstar Group 44 www.carlstargroup.com

Kenda Tires USA 37 automotive.kendatire.com

Deestone 5 www.deestone.com

Fury Off-Road Tires 83 www.furytires.com

Kumho Tire USA Inc. 41 www.kumhotireusa.com

General Tire 75 www.generaltire.com

Yokohama Off-Highway Tires America Inc. 45 www.yokohama-oht.com

Transamerica Tire Company Ltd. IFC www.venompowertires.com

Sentury Tire USA 55 www.senturytireusa.com

K & M Tire Inc. 77 www.kmtire.com

Nitto Tire U.S.A. Inc. OBC www.nittotire.com

ADVERTISER PAGE WEBSITE

Yokohama Off-Highway Tires America Inc. 15 www.yokohama-oht.com

Kenda Tires USA IBC www.kendatractionrewards.com

Maxxis Tires 49 www.maxxis.com

Michelin North America Inc. 36 www.michelin.com

BKT USA Inc. 11 www.bkt-tires.com

WHEN YOU CONTACT ONE OF OUR ADVERTISERS PLEASE BE SURE TO MENTION YOU SAW THEIR AD IN MODERN TIRE DEALER

1-800EveryRim OEM Wheels 84 www.everyrim.com/MTD

BKT USA Inc. 59 www.bkt-tires.com

Hunter CompanyEngineering 47 www.hunter.com

Mighty Auto Parts 65 www.mightyautoparts.com/try-vs7

Prinx Tire North America Inc. 35 www.prinxtire.com

Autel 67, 85, 86 www.autel.com

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