Modern Tire Dealer - June 2021

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UP AND RUNNING TRUCK TIRE MARKET SHIFTS INTO HIGH GEAR HOW TO FIND NEW CUSTOMERS DEALERS SHARE STRATEGIES WHAT’S FUELING THE SELL-OUT SPIKE? THE LATEST ON SOUTHERN TIRE MART AT PILOT FLYING J

June 2021 | Vol. 102, No. 6 | $10 | www.moderntiredealer.com

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5/24/2021 10:52:49 AM

The Industry’s Leading Publication June 2021, Volume 102, Number 6

F E AT U R E S 32 The North American commercial truck tire market has shifted into high gear, but challenges remain. Truck tire suppliers discuss what to expect as 2021 continues, starting on page 32.

DEPARTMENTS 4 Editorial In it for the long haul Keep an eye on the truck stop channel

20

How to find new customers

24

Michelin’s in motion

28

‘Stay in your lane’

6 moderntiredealer.com

The latest from TireHub CEO comments on supply, expansion and Goodyear-Cooper deal

16 Numbers That Count Relevant statistics from an industry in constant motion

18 Your Marketplace Building momentum Economic stimulus, reopenings fuel sell-out spike

46 DSP Insight

30

The ‘wage wars’ are here How to arm yourself for success

50 Mergers and Acquisitions Integrating retail into a commercial tire business How to grab the low-hanging fruit

52 TPMS Lexus-ES Series — 2007-21

Suspension work is about listening to the customer, says Barbara

200 locations within 36 months

Southern Tire Mart at Pilot Flying J has big plans

32

Up and running

40

Emphasizing ag

42

Electric trucks pose challenges for tiremakers

‘Showcase who you are’ How to leverage events to attract new customers

48 Business Insight

Garcin discusses long-term plans, the state of the market and why dealers will remain ‘at the center’ of Michelin’s strategy

Commercial Tire Dealer™

News and navigation tools for MTD’s website

8 Industry News

Two dealers offer different strategies

Truck tire market shifts into high gear — but challenges remain

Best-One of Indy continues growth with an eye on commercial

Range, torque and weight are concerns

44

Yokohama OffHighway ramps up

More ag, OTR tires are on the way, says Nanavati

56 Products 58 Ad index ON THE COVER: CLINTON SMITH OF EXIT 11 TRUCK TIRE SERVICE, RICHFIELD, OHIO. PHOTOGRAPHY BY SCOTT GALVIN

Modern Tire Dealer is a proud member of:

w w w . M o d e r n T i r e D e a l e r. c o m

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6/1/21 9:08 AM

Editorial

In it for the long haul

KEEP AN EYE ON THE TRUCK STOP CHANNEL By

Mike Manges

M

aking a buck as a commercial truck tire dealer has always been tough. First, you have to compete against other independent commercial tire dealers, most of whom are great at what they do. Then, in some cases, you’re also forced to compete against your own tire suppliers. And — as if this wasn’t enough — you have to compete against national truck stop chains, which have beefed up their tire programs in recent years.

There’s no doubt that truck stops want a bigger piece of the commercial tire pie. And they’re investing to make that happen.

Love’s Travel Stops, the eighth largest retreader in the United States, recently opened a new, 200,000-square-foot Oliver retread plant in Indiana.

The facility is one of six retread plants that Love’s operates and doubles the size of its predecessor. Retreads produced there are sold at Love’s Truck Care and Speedco locations.

There are more than 400 of these outlets, which carry BFGoodrich, Bridgestone, Continental, Double Coin, Goodyear, Hankook, Michelin and Yokohama new truck tires.

Those locations also offer various tire programs, including TirePass, an in-lane tire assessment and inflation service.

Love’s, which has its own fleet of road service trucks, plans to open 30 more Speedco and Truck Care locations this year.

This will give the company, by its own count, more than 1,500 service bays that are dedicated to tire and truck work.

And that’s just what one truck stop chain is doing.

TravelCenters of America (TA) operates nearly 250 TA Truck Service locations that carry several new truck tire brands, including Bridgestone, Continental, Firestone, Goodyear, Kelly, Michelin, Roadmaster and Yokohama.

The company also builds its own retreads, operating out of a 32,000-square-foot plant in Ohio that opened in 2018. (The plant uses Goodyear equipment and processes.)

In addition, TA operates more than 600 RoadSquad emergency road service trucks.

Smaller truck stop chains are pumping up their offerings, as well.

Boss Truck Shop Inc. recently announced that Continental brand truck tires will be available at its nearly 50 Boss Shop locations, which span 23 states.

The chain also carries Bridgestone, Goodyear, Ironman, Kelly, Michelin and Yokohama brand new truck tires, plus Michelin, Bandag and Goodyear retreads.

Boss has a history of partnering with tire manufacturers. Remember when it teamed up with Goodyear Tire & Rubber Co.’s Wingfoot Commercial Tire Systems LLC subsidiary to form the Uni-Maxx Truck Care network?

While talking truck stops, I would be remiss if I forgot to

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There are more than 400 Love’s Truck Care and Speedco outlets throughout the U.S.

mention the biggest truck stop-related announcement to hit our industry in years: Pilot Flying J’s alliance with Southern Tire Mart LLC, the largest independently owned and operated commercial tire dealership in the U.S. You can read more about this unique pairing on page 30 of this issue.

When it comes to servicing trucking operations — from the biggest fleets to the smallest owner-operators — independent commercial tire dealers rule the roost.

But there’s a lot happening in the truck stop channel. Keep an eye on it.

I’m happy to report that MTD also has a “first” to talk about — the MTD Podcast, which will launch near the end of this month.

While a new avenue for us, our podcast series shares the same goal as this magazine and our other properties and that’s providing information to help you operate more efficiently and profitably.

Our podcast will bring you all the news and analysis that you have come to expect from MTD, plus business advice and best practices from top experts, exclusive interviews with some of the biggest names in the North American tire industry, discussions with other independent tire dealers and more.

Episodes will be available on MTD’s website, www.moderntiredealer. com, and also via major podcast platforms Spotify, Apple Podcasts, Google Podcasts, Stitcher and iHeart Radio.

We’ll also post links to episodes on MTD’s social media channels, so you can access content from a wide variety of sources and angles — when and where convenient for you.

We want you to think of this as your podcast, too, so feel free to offer feedback.

And if there’s a topic that you believe we should cover during a future episode, don’t be shy — let us know! ■ If you have any questions or comments, please email me at mmanges@10missions.com.

MTD June 2021

6/1/21 9:09 AM

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ModernTireDealer.com DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER

MTD website keeps you informed MTD’s website provides you with breaking news, feature articles, links to exclusive MTD research and blogs, new products and much more 24/7. Check it out today!

MTD digital edition

eNewsletters Sign up now for Modern Tire Dealer eNewsletters. We’ll send you the latest news and most popular articles.

Go to: www.moderntiredealer.com and scroll to The Modern Tire Dealer Newsletter is the Definitive Source for Tire Dealer Success.

Hit Digital Edition at the bottom of our www.moderntiredealer.com homepage.

Like MTD on Facebook:

www.facebook.com/ModernTireDealer

Follow MTD on Twitter:

www.twitter.com/MTDMagazine @MTDMagazine

The late Barry Steinberg with one of his Direct Tire & Auto Service stores.

Steinberg was MTD’s first Tire Dealer of the Year Award winner in 1993. There were four Direct Tire outlets at the time of his death.

Industry reads about Steinberg’s passing on MTD website Barry Steinberg, longtime owner of Watertown, Mass.-based Direct Tire & Auto Service and Modern Tire Dealer’s first Tire Dealer of the Year Award recipient, died on April 28.

MTD’s story honoring Steinberg’s legacy was the most well-read on our website this past month. Meanwhile, the Goodyear-Cooper deal continued to resonate with MTD readers. And executive appointments at Toyo and TBC garnered a lot of attention.

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Longtime Direct Tire owner Barry Steinberg dies Goodyear-Cooper Deal: Analyst Healy talks brands, Cooper’s future MTD exclusive: The latest from TireHub Goodyear plans another consumer tire price hike Mickey Thompson Baja Boss A/T is a hybrid all-terrain tire Toyo names Thomas next president, CEO SBA to provide extra COVID-19 relief for small businesses Sullivan Tire will take over two Direct Tire locations Laurent Bourrut will replace Erik Olsen at TBC Michelin launches ‘Motion In Life’ ad campaign

HOME OFFICE 3515 Massillon Rd., Suite 350 Uniontown, OH 44685 (330) 899-2200, fax (330) 899-2209 Website: www.moderntiredealer.com PUBLISHER Greg Smith, ext. 2212 gsmith@10missions.com EDITORIAL Editor: Mike Manges, ext. 2213 mmanges@10missions.com Managing Editor: Ron Ledgard, ext. 2216 rledgard@10missions.com Senior Editor & Digital Projects Editor: Joy Kopcha, ext. 2215 jkopcha@10missions.com PRODUCTION Art Director: Zach Pate Graphic Designer: Olivia Curti Production Artist: Lauren Coleman Production Manager: Karen Runion, ext. 2210 krunion@10missions.com SALES Publisher: Greg Smith gsmith@10missions.com (330) 899-2200, ext. 2212 Midwest: Bob Marinez bmarinez@10missions.com (330) 899-2200, ext. 2217 West Coast: Marianne Dyal mdyal@10missions.com (706) 344-1388 Automotive Aftermarket: Dan Thornton dthornton@10missions.com (734) 676-9135, mobile (734) 626-4950 Sean Thornton sthornton@10missions.com (269) 499-0257 CUSTOMER/SUBSCRIPTION SERVICE (800) 260-0562 subscriptions@moderntiredealer.com

EXECUTIVE OFFICE 10 Missions Media 571 Snelling Ave. N. St. Paul, MN 55104 (651) 224-6207 CORPORATE OFFICERS President: Jay DeWitt Vice President: Chris Messer Vice President, Content & Events: Bryce Evans

Modern Tire Dealer (ISSN: 0026-8496) is published monthly by 10 Missions Media, LLC, 571 Snelling Ave N, St. Paul, MN 55104-1804. Copyright © 2021 by 10 Missions Media, LLC. All rights reserved. Modern Tire Dealer content may not be photocopied, reproduced, or redistributed without the consent of the publisher. Periodicals postage paid at St Paul, MN and additional mailing offices. POSTMASTERS Send address changes to: Modern Tire Dealer, 571 Snelling Ave N, St. Paul, MN 55104.

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MTD June 2021

6/2/21 9:53 AM

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5/27/2021 3:54:16 PM

Industry News

The latest from TireHub

CEO TALKS SUPPLY, EXPANSION AND GOODYEAR-COOPER DEAL

P

eter Gibbons, CEO of TireHub LLC, recently covered a wide range of topics with MTD, including the current state of tire supply, the company’s expansion plans and what Goodyear Tire & Rubber Co.’s pending acquisition of Cooper Tire & Rubber Co. could mean for TireHub and its customers.

DEMAND, SUPPLY AND INVENTORY

Many tire dealers are grappling with issues related to tire supply. Gibbons acknowledges that “supply is tight, but our job is to provide our suppliers with the best possible information so we can prioritize and schedule effectively.”

Gibbons says “product availability is our number-one priority and we continue to add inventory to supply our dealers.”

The wholesale distributor’s investments in ToolsGroup — a tool to manage variables in the supply Peter Gibbons chain, with demand says TireHub “entered 2021 with a forecasting, inventory lot of momentum optimization and and that energy replenishment planwill help us meet ning — and Power and exceed our BI, a reporting tool, goals.” are helping TireHub “provide a high-quality demand signal to our suppliers.

“We are still seeing many of the preCOVID-19 demand trends persist. Demand for light truck, SUV and CUV (tires) continues to grow, which also contributes to the broader growth of large-diameter tires.

“That said, the financial impact of the pandemic has forced many consumers to make more economic choices. We have seen an increase in mid-to-low tier demand as consumers seek to balance value and performance. Likely related,

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there is increased demand for all-weather and all-season offerings.”

DELIVERY AND SERVICE

TireHub’s customers demand frequent deliveries and in-stock products. “We’ve fine-tuned our delivery philosophy, but it has always stayed true to what it was built on — taking care of dealers and retailers.

“We provide up to three-times-a-day deliveries to customers within 20 miles, two-times-a-day deliveries to customers within 60 miles and one-time-a-day delivery to customers within 120 miles.

“Our strategy is to continually improve; have the right inventory in the right place at the right time; make sure customers can be serviced from their closest (warehouse); and keep customers at the center of our plan.”

All of that is helped by a series of tools, including QuickPay, an online payment and invoicing system; Roadnet, a route optimization technology tool; FreshWorks, a customer relationship management tool; TireHub Now, a platform that shows real-time inventory and order information, plus online ordering; and TireHub Pass, which is a system dealers use to interact with the wholesaler.

Gibbons says these tools “indicate our commitment to serve customers with what they want, when they want it.”

In 2020, during the height of the pandemic, customer service took a turn.

“There was certainly a period last year where our dealers and retailers needed us to be a different type of partner. We got many calls from customers concerned about paying bills or remaining open. Each time, our response was to listen, offer support and demonstrate our commitment to them.

“Like everyone, we saw a major slowdown in April (2020), but in the second half of the year, sales increased and retail business returned. We ended the year relatively flat compared to 2019.”

EXPANSION PLANS

On March 1, TireHub announced its move into a new market: West Palm Beach, Fla. The company opened a 40,000-square-foot distribution center to serve that market, which previously had been served by locations in Fort Lauderdale and Miami.

So what’s next? “We plan to relocate or expand in at least five total markets this year,” including West Palm Beach.

WILL TIREHUB STOCK COOPER?

The Feb. 22 announcement that Goodyear Tire & Rubber Co. — one of the owners of TireHub, along with Bridgestone Americas Inc. — plans to acquire Cooper Tire & Rubber Co. collided with TireHub staging its national meeting for about 300 employees.

The meeting, held online this year, is for sales and operations leaders, TireHub’s customer-facing sales teams and the leaders of its distribution centers.

“Everyone came together for two-anda-half days to understand the strategy and ambition for the year ahead,” says Gibbons.

As for what the Goodyear-Cooper deal will mean for TireHub, Gibbons says it’s time to wait and see.

“The announcement is an exciting development, but as you know, specifics about the combined company will take some time to come together. Until then, it’s business as usual for us and we remain focused on saying ‘yes’ to our customer’s Goodyear, Bridgestone, Dunlop, Firestone, Kelly, Fuzion, Toyo, Lemans and Prinx needs.”

TireHub doesn’t currently stock Cooper’s products. When asked if those tires will be available to TireHub customers and what that might mean for other brands already stocked in the company’s warehouses, Gibbons didn’t offer any hints.

“Specifics about the combined company and any subsequent actions for TireHub will take some time to come together.”

— Joy Kopcha MTD June 2021

6/1/21 9:18 AM

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5/28/2021 10:00:00 AM

Industry News

Direct Tire founder Barry Steinberg has died

Bites Toyo names new CEO Toyo Tire U.S.A. Corp. has named John Thomas its next president and CEO. He will replace Roy Bromfield, who will retire in July. Thomas comes from Webasto Charging Systems Inc. and has more than 30 years of automotive industry experience.

Michelin’s sales jumped in 1Q The Michelin Group achieved an 8.3% increase in sales during the first quarter and also posted 7.5% year-over-year growth in tire volume. The company says gains were partially driven by improvements in tire mix and market share increases in “Michelinbranded, 18-inch and larger tires.”

Bridgestone grew during 1Q Bridgestone achieved a 107% year-overyear operating profit increase during the first quarter of the year, plus a 7.2% gain in net revenue versus the same period in 2020. The company’s passenger and light truck sales climbed 8% during the first quarter.

Continental boosted sales Continental AG recorded a 10% gain in tire sales during the first quarter of 2021 versus the same period last year. The company says results were driven in particular by improvements in North America and China.

Hankook grew sales, profit Hankook & Co. reports that its global sales grew by 12.6% during the first quarter. The company’s operating profit increased by 75.5% during the same period.

Toyo achieved income surge Toyo Tire Corp. boosted its operating income by 83.1% during the first quarter of 2021 versus the same period last year. It also achieved a sales increase of 6.9%.

Yokohama increased sales Yokohama Rubber Co. Ltd.’s first quarter sales revenue increased 15.8% versus the same period in 2020. The company also achieved significant year-over-year operating profit gains.

SRI’s profit jumped in 1Q Sumitomo Rubber Industries posted a 566% operating profit gain during the first quarter of 2021. Its tire sales increased by more than 100% versus the same period last year.

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arry Steinberg, longtime owner of Watertown, Mass.-based Direct Tire & Auto Service and Modern Tire Dealer’s first Tire Dealer of the Year Award recipient, has died. He was 75.

Steinberg served in the U.S. Army in Thailand during the Vietnam conflict and in 1974, partnered with his friend, Albee Stone, to open Direct Tire.

After buying Stone’s share in the business, Steinberg went on to single handedly build one of the most well-known and successful independent tire dealerships in New England and at one time expanded the business to five locations.

There were four Direct Tire stores at the time of his death.

A master marketer, “Barry’s clever marketing phrases, ‘We’ll Fix It So It Brakes’ and ‘We’ll Brake, Shock and Exhaust You’ became hallmarks on billboards,” according to his obituary.

“Anyone listening to the radio in Boston was familiar with Barry Steinberg was Barry’s trademark voice touting ads for ‘Dye-Rect Tire.’”

MTD’s first Tire Dealer “Barry was a tire dealer’s tire dealer and the epitome of the Year Award of what makes independent tire dealers great,” says MTD winner in 1993. “I’m Publisher Greg Smith. “He always wanted to help other tire satisfied making a dealers and was always available to MTD’s editors, sharing good living for myself and my family,” he said his unique insight and experience.” at the time.

“There was a reason he was MTD’s first Tire Dealer of the Year in 1993,” says Bob Ulrich, MTD’s former editor. “He came up with the lifetime warranty on Toyo tires and if you heard about new technology that could help sell tires and service, he was already using it.”

Steinberg is survived by his wife of 41 years, Penny; children Jason, Matthew, Dan and Sara; grandchildren Miranda, Gabriel, Isabella, Claire, Noah and Logan; and others.

Two Direct Tire stores — one in Medway, Mass.; and another in Peabody, Mass.

— have been acquired by Sullivan Tire Co. Inc., which enjoyed a relationship with Steinberg that went back decades.

“Built on similar values of community involvement and philanthropy, as well as integrity in the auto service business, the mutual respect between the two organizations made the acquisition a natural fit,” says Paul Sullivan, vice president of marketing for Sullivan Tire.

“Barry was always highly respected in Steinberg had four Direct Tire & Auto Service stores at the time of his death. the community and in the industry and he was a steadfast supporter of taking care of customers and employees. We hope to retain all (Direct Tire) employees to carry on the tradition of excellence that customers have come to expect.”

Direct Tire’s flagship location in Watertown will continue under the ownership of its longtime general manager, Bob Lane, who worked for Steinberg for 25 years.

“Barry was a mentor to me and a close personal friend,” says Lane. “He had been grooming me to take over the business for many years and we had been working closely with the great team at Sullivan Tire for the past three years to put this transaction together and ensure a smooth transition.”

Lane says the Watertown store’s staff will remain in place. “We will continue to deliver the finest customer service available, just the way Barry would have wanted it.”

Direct Tire’s fourth store — a location in Norwood, Mass. — will close. Direct Tire told its customers in a Facebook post that the store had been hit “particularly hard by the pandemic economic downturn.”

MTD June 2021

6/1/21 9:19 AM

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5/25/2021 9:36:06 AM

Industry News

Cooper shareholders approve acquisition

Bites Discount teams with AAA Discount Tire is partnering with AAA in select markets to offer discounted tires and flat repairs to AAA members. Covered markets include New Mexico, where Discount Tire has 20 stores, plus the Tidewater region of Virginia and the Kansas City, Kan., metropolitan area.

Nexen goes racing Nexen Tire America Inc. recently kicked off its growing U.S. motorsports program for 2021, which includes Formula Drift, King of the Hammers, the Ultra4 Racing series, Championship Off-Road Racing and the Pikes Peak International Hill Climb.

TIA delays events The Tire Industry Association is again postponing its 2021 government affairs events due to COVID-19. Its lobby day, environmental summit and International Issues Summit will be rescheduled for 2022.

Aspa is Fountain MVP Jaecen Aspa, owner of Fountain Tire’s Terrace, British Columbia, location has received Fountain Tire’s Most Valuable Player award for his “entrepreneurial spirit and enthusiasm,” the company says.

Hankook fits on Porsche Hankook & Co. will equip the Porsche 718 Boxster and Cayman with its ultra-high performance Hankook Ventus S1 evo 3 tires.

Nokian opens D/C Nokian Tyres plc has opened a new distribution center in Shorewood, Ill., that doubles the size of the company’s previous Chicagoarea warehouse. The 507,000-square-foot facility can house up to 600,000 tires.

Cooper expands in Indiana Cooper Tire & Rubber Co.’s one millionsquare-foot distribution center in Whiteland, Ind., has opened. First announced last summer, the facility is one of six regional distribution centers operated by Cooper.

Linglong wins Ford award Ford Motor Co. presented a 1Q Award to Linglong International Tire (Thailand) Co. Ltd., a designation the tiremaker says signals its progress in the global original equipment tire market.

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ooper Tire & Rubber Co. stockholders overwhelmingly voted to approve the company’s pending purchase by Goodyear Tire & Rubber Co. Just shy of 99% of Cooper shareholder votes were cast in favor of the transaction on April 30.

“We are pleased with the strong support of our stockholders for the proposed business combination of Cooper and Goodyear as all proposals related to the acquisition were approved,” says John Holland, chairman of Cooper’s board. “This step is an important one in the process of bringing together our two companies to continue to meet the needs of customers, consumers and other stakeholders around the world, while driving value for shareholders.”

The acquisition remains subject to regulatory approval and the satisfaction of customary closing conditions.

It’s also facing a challenge in court, as five Cooper shareholders filed suit ahead of the shareholder vote.

The companies originally announced that the deal will close during the second half of this year, The acquisition of Cooper by but Cooper CEO and President Brad Hughes has Goodyear is still subject to reguindicated that “the transaction could close earlier.” latory approval.

If the deal is approved, Cooper will be owned

by Goodyear, which is based in Akron, Ohio, but Goodyear has said it will maintain a presence in Findlay, Ohio, Cooper’s hometown since 1917.

Findlay is home to one of Cooper’s three U.S. factories. Those plants have the combined capacity to build 97,000 passenger and light truck tires a day.

During the first three months of 2021, Cooper’s sales totaled $656 million, while Goodyear closed the quarter with sales of $3.5 billion.

Cooper’s first quarter net income totaled $22 million, while Goodyear reported a profit of $12 million.

Hankook invests in AI technology

H

ankook & Co., parent company of Hankook Tire America Corp., is investing heavily in artificial intelligence (AI) as a future driver of tire design, testing and performance monitoring.

The company says its Virtual Compound Design system is “a predictive model for tire compound properties using artificial intelligence.”

In April 2020, Hankook revealed it had developed an automatic tire inspection system based on AI technology and digital sensors “to leverage efficiency and consistency at the final stage of product testing.”

“AI technology is here and is being actively adopted in the tire industry,” Hojong Lee, leader of Hankook’s mobility solution development project, recently told MTD. Lee says Hankook is “developing an AI algorithm to have a tire identify road conditions and predict tire load and wear-out risks on its own by learning various road conditions and data acquired from sensors through deep-learning methods.

“As the tire analyzes the data, the information will be delivered to the driver inside a vehicle in real-time through in-car displays.

“As of now, Hankook Tire has completed the development of an intelligent tire system concept that recognizes the real-time load, tread wear and road surface condition,” says Lee. Information relayed to drivers “will greatly improve control of a vehicle, providing (an) alert for tire abnormality and tire replacement.”

Sungheen Youn, manager of Hankook’s design team, says Hankook will launch “an intelligent tire that can estimate load and tread wear” within a year-and-a-half.

MTD June 2021

6/1/21 9:19 AM

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6/2/21 10:23 AM

Industry News

Bites SBA offers more relief The U.S. Small Business Administration (SBA) will provide $5 billion in additional assistance to businesses that have been impacted by COVID-19 and employ fewer than 10 people.

Register for SEMA Show Registration for the 2021 Specialty Equipment Market Association (SEMA) Show, set for Nov. 2-5 in Las Vegas, Nev., is open online. SEMA says more than 1,500 companies have already registered for the event, which will take place at the Las Vegas Convention Center.

TBC announces executive changes

E

rik Olsen will step down as president and CEO of TBC Corp. on June 30. He will be replaced by Michelin executive Laurent Bourrut, who has been with the tire manufacturer since 2007.

Olson, who joined TBC in 2004 as senior vice president and chief marketing officer, was promoted to TBC president and CEO in 2014.

Marty Krcelic, president and COO of TBC Brands and executive vice president of TBC Corp., also will retire on June 30 after nearly 21 years with TBC. Succeeding Krcelic and leading TBC Brands is Geoff Doster, senior vice president of sales.

Doster’s duties will expand to include oversight of the TBC Brands business, customer service, commercial truck tire sales and equipment and non-tire sales.

BKT provides plant update Balkrishna Industries Ltd. (BKT) says its tire plants in India continue to operate at nearfull capacity despite the wave of COVID-19 infections that has swept that country.

BKT’s plants are running at 95% capacity, on average, according to BKT Joint Managing Director Rajiv Poddar.

Pete’s adds Vipal machine Pete’s Road Service has added another Vipal retreading machine, a VOC 760 Cargo extruder, at its plant in Corona, Calif. The commercial tire dealership added a Vipal buffer at the plant last year.

Michelin launches campaign The Michelin Group has launched its largest, multi-channel ad campaign in years. The company says its Motion For Life campaign features ads filmed in nine locations around the world and revolves around Michelin’s role in motion and mobility.

T

Schrader teaches TPMS Schrader TPMS Solutions has trained more than 1,200 people using its online tire pressure monitoring systems training course since the spring of 2020. Trainees can earn a certificate from Schrader.

14

02_MTD_News-Numbers.indd 14

More tiremakers hike prices

ire manufacturer price increases continue. Goodyear Tire & Rubber Co. hiked its Goodyear, Dunlop and Kelly brand consumer tire prices by up to 8% on June 1.

Apollo Tyres raised prices on its Vredestein consumer tires up to 8% on June 1 and will hike its Vredestein brand off-highway tire prices up to 8% on July 1.

Continental Tire the Americas LLC will raise prices on select Continental and General brand passenger and light truck tires sold in the United States on July 1. Increases will vary “across specific products by brand,” according to Continental officials.

Also on July 1, Michelin North America Inc. will raise prices on its Michelin, BFGoodrich and Uniroyal brand passenger and light truck replacement tires sold in the U.S. and Canada up to 6%. On the same day, Michelin will hike its on- and off-road commercial tire prices up to 13%.

Pirelli Tire North America Inc. will raise prices on its passenger and light truck tires by up to 6% on July 1. Increases will vary by line and size.

Sailun creates NA division Sailun Group Co. Ltd. has formed Sailun Tire Americas, its dedicated North American division, which will focus on “North American-specific brands, products and services,” according to company officials.

Its brands include Sailun, Blackhawk, RoadX and Rovelo.

Laurent Bourrut will replace Erik Olsen as TBC Corp.’s president and CEO on June 30.

M

Commercial Tire is now employee-owned

eridian, Idaho-based Commercial Tire Inc., one of the largest independent commercial tire dealerships in the United States, is now 100% employee-owned thanks to a recently formed employee stock ownership plan (ESOP).

“It’s always been a major concern of mine — how do I position the company to be in the best place to take care of my family, the employees who helped us get here and our loyal customers?” says Bob Schwenkfelder, founder and CEO of Commercial Tire, which has 45 stores in the northwestern part of the country.

“Selling the company could create unwanted change and instability for the people we care about. This transition is about leaving a legacy for our employees and in our communities that will have a lasting, positive impact.”

The ESOP will help Commercial Tire recruit and retain “great people,” he adds.

“And in turn, the service we provide to our customers will only get better.” ■ MTD June 2021

6/1/21 9:20 AM

15_YOKOHAMA OHT_0621.indd 15

6/1/2021 2:52:35 PM

79%

Percentage of respondents to MTD’s latest Tire Dealer Automotive Service Study that offer alignments.

SOURCE: MTD’S 2021 FACTS ISSUE

1

The average scrap tire that is generated per person per year in the United States.

SOURCE: REFERENCE.COM

5.1 MILLION

U.S. registrations of hybrid vehicles as of Jan. 1, 2020, a yearover-year increase of nearly 7%.

SOUCE: AUTO CARE ASSOCIATION’S 2021 AUTO CARE FACTBOOK

3

The most common number of technicians employed per outlet at independent tire dealerships.

16

02_MTD_News-Numbers.indd 16

SOURCE: MTD’S 2021 FACTS ISSUE

15.6%

Average medium truck tire margin during 2020, up from 15.4% in 2019.

SOURCE: MTD’S 2021 FACTS ISSUE

TIRE IMAGE: UNSPLASH.COM/@ANDREWCOOP

NumbersThatCount

Relevant statistics from an industry in constant motion

MTD June 2021

6/1/21 9:21 AM

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Building momentum

ECONOMIC STIMULUS, REOPENINGS FUEL SELL-OUT SPIKE By

John Healy

I

n my last column, I wrote that retail sellout trends are improving. More recent conversations with dealers leave us with the impression that sell-out trends have continued to improve on a sequential basis and have continued to gain momentum — not only year-over-year, but also when compared to pre-pandemic levels.

From a volume standpoint, surveyed dealers are reporting unit sales increases of 14.6%, on average, compared to prioryear levels.

And the net number of respondents to our latest survey report they have experienced a year-over-year demand increase of 68%.

Economic stimulus has been a benefit, as consumers with more money in their pockets are investing in vehicle maintenance, including the purchase of new tires.

And we continue to hold the perspective that volumes in the long run will become more closely aligned with the current level of GDP growth — with the months ahead likely to improve even more as more people receive the COVID-19 vaccine, state and local economies continue to open and COVID-19 fatigue increases.

Moving forward, this will invite easy comparisons to past activity as we continue to lap the depths of the COVID-19 crisis.

CHANGING PREFERENCES?

Our latest survey shows that tier-two brands continue to see the most significant amount of growth, as reported by our contacts.

This is a continuation of what we observed last month as consumers become more confident in their financial position and outlook.

Dealers also report that inventory levels are low, while price increases continue to be pushed through by many tire manufacturers.

We have seen throughout the pandemic that consumers seem to change their preference for certain tiers and products according to the current COVID-19 situation.

Reduced rates of COVID-19 infections and the vaccine roll-out will likely aid consumer confidence and could eventually spur a possible shift to more expensive brands.

We also believe consumers will seek a more balanced ratio of value to performance, whereas for many months, they have skewed toward value.

MILES ARE STILL UP

We continue to track a number of data points to assess the health of automobile travel and note that since we have lapped the start of the pandemic, year-over-year comparisons are being drawn from prepandemic levels.

Apple’s Mobility Trends Report indicates that the number of people who are searching for driving directions remains up.

Mobility trends bottomed out with a 62% drop in April 2020, when indexed back to January 2020.

As of May 10, 2021, trends in the United States are up 29% compared to the baseline,

Snapshot of Dealers’ PLT Tire Volumes (Year-Over-Year-Change) Feb-20

Mar-20

Apr-20

Feb-21

Mar-21

Apr-21

Average

Increase

35%

29%

0%

0%

67%

83%

41%

Flat

29%

14%

12%

20%

11%

0%

28%

Decline

36%

57%

88%

80%

22%

17%

31%

Total

100%

100%

100%

100%

100%

100%

100%

SOURCE: NORTHCOAST RESEARCH ESTIMATES

18

02_MTD_News-Numbers.indd 18

while a month ago, they were up 39%. As noted in the past, there is a direct correlation between miles driven and the need for tire replacement.

CONSISTENCY IS EXPECTED

When examining the landscape from a longer-term view, we see that many of the trends listed in past columns continue to hold.

We continue to believe that the pricing environment in North America will remain rational and in-line with raw material costs.

We expect tire manufacturers to remain very disciplined in their efforts to manage the trade-off between volume and price in order to optimize profit rather than market share.

We are pleased with the continued disciplined approach to production schedules we have seen at the manufacturing level.

And global tire inventory levels remain relatively lean.

Moreover, tire dealers and wholesalers are being tactical with their approach to inventory allocation, in light of raw material prices, recent pricing actions on the part of tire manufacturers and possible legislative moves, like the application of tariffs on certain consumer tires.

Downstream players continue to direct orders in a way that helps them capitalize on the pricing spreads we currently see.

In addition, our dealer contacts maintain a very positive outlook for demand and volume trends going forward.

They remain excited about the role that the potential for more economic stimulus and continued consumer investment in vehicle maintenance will play in building even more sell-out momentum as the industry moves into the second half of 2021. ■ John Healy is a managing director and research analyst with Northcoast Research Holdings LLC, based in Cleveland, Ohio. Healy covers a variety of subsectors of the automotive industry.

MTD June 2021

6/1/21 9:22 AM

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Finding new customers Tom’s Tire Pros is investing in a full-throttle digital marketing plan, 80% of which moves through the store’s marketing liaison at Tire Pros.

Left: Tom Ceniglis Jr., owner of Tom’s Tire Pros, is seeing results with an emphasis on digital marketing at his two stores in Texas.

Year to date, one out of every three invoices in San Angelo have been for new customers, with even higher results in Abilene.

Below: Tom’s Tire Pros is a family-owned and operated dealership under second-generation ownership. The third generation is at work in the business: Austen, pictured, and his brother, A.J., both have “a big impact on the business,” their dad says.

How to find new customers TWO DEALERS OFFER DIFFERENT STRATEGIES By

Joy Kopcha

A

bout three years ago, Tom Ceniglis Jr. uprooted his entire marketing plan. No more radio ads. No more billboards.

“We changed over to an almost entirely digital marketing platform, except for some local broadcast TV,” says Ceniglis, the second generation owner of Tom’s Tire Pros, a two-store retail business in Abilene and San Angelo, Texas.

“We wanted to be in the mix when a potential client was in the decision-making phase of their buying process,” says Ceniglis.

“Between 70% and 80% who buy tires research them online first, and typically (they) will research the dealer a little bit.”

Ceniglis says the strategy is paying off.

June 2020 was the company’s biggest sales month in its history — until the team broke the record again in March 2021.

“This March was much bigger,” he says.

And in the last days of April, tickets were trending 30% above the previous year.

20

03_MTD_AttractingCustomers_Michelin_AutoService.indd 20

ONLINE STRATEGY

Priority one is for consumers to find his stores and website when they’re shopping for tires, says Ceniglis. That means search engine marketing and strategies with Google AdWords are important. But it’s also not a “set-it-once-and-forget-it” plan.

With the help of Katie Maddux, his assigned marketing liaison from American Tire Distributors Inc.’s Tire Pros program, Ceniglis focuses his Google advertising on different kinds of customers and searches.

Earlier this spring, when consumers had fresh stimulus money and tax refunds were hitting bank accounts, their spending was on more discretionary items, like lift kits, wheels and accessories.

“As we’re moving into summertime, the average customer is going to be a larger percentage of our business. They just want to take a vacation,” and might need tires or automotive services before a roadtrip.

Tom’s Tire Pros advertises on social media,

too, though Ceniglis admits the dealership stopped this for a few months both during and after the 2020 presidential election season when “everyone was trying to control the dialogue” on Facebook and Twitter.

“We’re back on it now.”

Just like on social media platforms, Tom’s Tire Pros is targeting customers in the markets surrounding its stores via streaming television services.

Known as “Over the Top” or OTT, Ceniglis says “it’s a more cost-effective means of advertising on television, so we want to be there. We can target an age group, income level and geographic area.

We could put it to one household if we wanted to. I know it’s effective.”

The stores also focus on reputation management and request a review from every customer — via a text message — after each sale. Those genuine reviews help pull in prospective customers who are shopping and searching online, he says.

MTD June 2021

5/25/21 2:21 PM

*Based on U.S. Polk database P-/Euro-metric sizes SUVs and pickups of all model years.

21_FIRESTONE TIRE_0621.indd 21

5/28/2021 10:03:19 AM

Finding new customers

Consumer Tire believes in community service as a means to market to new customers.

Four years ago, it created a nonprofit to raise money and help needy drivers pay for tires and vehicle repairs. From left, owners Bruce Kantz, DD Coley and Dave Kantz.

“All of this stuff works together. That’s what makes it effective.

“We advertise a lot and it’s helped us continue to grow our business and solidify it. As we go up with our advertising budget, our sales fall right in line.”

In 2020, Ceniglis spent $148,000 on marketing his two stores and depending on the month, he expects to increase that spend by up to 12% in 2021.

SEEING RESULTS

All of those digital tools are delivering new customers to Tom’s Tire Pros. The proof is in the tally of new customer invoices. Yearto-date, 41.3% of invoices at the dealership’s Abilene store are from new customers. In San Angelo, the figure is 34.1% “We really feel like we’ve got it dialed in right now,” says Ceniglis. “I’ve never felt as confident with my marketing dollars being spent. We’re very confident. The numbers are proving it.”

And he believes the focus on digital marketing gave his business a leg up during the pandemic. While other dealers — and businesses of every kind — were trying to pivot and find their way online and on social media last year, Tom’s Tire Pros already had a foundation in place.

“We were kind of lucky. If you’re going to have a digital marketing program, it takes time for it to get in place and be effective. It does not happen overnight.” He encourages other dealers to “stay the course.

“We had a little soft spot when we got started, but it’s such a drastic change.

You’ve got to be willing to be committed to it … for two years.”

22

03_MTD_AttractingCustomers_Michelin_AutoService.indd 22

But Ceniglis doesn’t downplay the power of one customer recommending his store to a friend or neighbor.

“We feel like the most effective means is referral and word of mouth,” he says. “It’s taking good care of our existing clientele, genuinely caring about and taking care of their needs and delivering the exceptional buying experience for them.

“If you’re not taking care of your clientele, you’re not doing it right.”

REWARDING CUSTOMERS

Consumer Tire Inc. relies on a mix of digital tools, with a heavy dose of an old standard — community service — to attract customers to its stores in Mentor and Chardon, Ohio.

DD Coley and her brothers, Dave Kantz and Bruce Kantz, own and operate the two-store business their father started.

On the digital side, Coley says the dealership offers a customer rewards program using BayIQ software. The program is featured prominently on the Consumer Tire website and so are the coupons and specials available to members.

Customers can sign up online and use the initial $5 off coupon on their first visit.

With every visit, they accumulate points for future purchases.

“They’re being rewarded for their loyalty,” says Coley, Consumer Tire’s president.

She recently saw those points pay off in a big way for a customer.

A woman came in for a seasonal tire changeover at the end of winter and was surprised to learn she needed to replace her all-season tires that had been in storage.

She wasn’t prepared for that purchase that day, says Coley, but the woman, a mother of eight, asked if she had any rewards points in the bank.

“She had $157 in points accumulated.

She was happy as a clam when she left.”

The same software allows Consumer Tire to reach out to customers by sending monthly emails that usually include coupons and specials. In 2020, the tire dealership used those emails “ to share what we were doing for safety and sanitizing.”

The software also helps the advisor at the front counter be alert for new customers. And when writing up a ticket for a first-time customer, the customer’s name is highlighted in blue.

“Blue is new” and Coley says it’s a signal to every employee, including the technician in the bay, that they’re working with a first-time customer.

GRASSROOTS EFFORTS

In Coley’s mind, digital tools are nice, but do-it-yourself customer programs are worth a try, too.

Bill Pollotta took over as manager of the nine-bay Consumer Tire store in Mentor last July and he’s been putting his feet to the pavement to find more customers.

He’s calling it “Reach Out to the Neighborhood” and he’s visiting neighboring businesses and offering their employees discounts on automotive services, going as far to shuttle their cars back and forth for them.

Coley says Pollotta’s efforts have inspired the company to reach out to its fleet customers. Consumer Tire is offering discounts to fleet employees who have work done on their personal vehicles.

Coley is also a big believer that hometown philanthropy goes a long way in marketing a local business and attracting new customers.

She’s an active member of the Fraternal Order of Eagles and supports the local chambers of commerce in her communities.

Consumer Tire supports as many local projects as possible each year.

“The community service — you can’t put a dollar amount on it,” she says. “It’s your time and commitment.

“We don’t have a dollar amount for donations. We do things we think are beneficial for our communities.” Among their favorite causes are projects that support veterans and police officers. ■ MTD June 2021

5/25/21 2:21 PM

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Executive interview “Our job as a mobility provider is to provide our dealers with solutions that will address the (needs) of the end user today and also tomorrow,” Alexis Garcin, chairman and president of Michelin North America Inc., recently told MTD. Garcin says dealers are “at the center” of Michelin’s strategy.

Michelin’s in motion

GARCIN DISCUSSES LONG-TERM PLANS, THE STATE OF THE MARKET AND WHY DEALERS WILL REMAIN ‘AT THE CENTER’ OF MICHELIN’S STRATEGY By

Mike Manges

I

n April, the Michelin Group revealed its Michelin in Motion strategy, which calls for 20% to 30% of the company’s total sales to come from “non-tire businesses” by the year 2030.

Michelin also announced that it will “expand, invest and innovate” in five areas, including services and solutions; flexible composites, such as conveyors, belts, coated fabrics and seals; medical devices; 3D printing; and “hydrogen mobility.”

Where do independent tire dealers fit into the equation? In this MTD interview, Alexis Garcin, chairman and president of Michelin North America Inc., explains the role dealers will play.

He also discusses the state of the North American tire market and why vehicle electrification is “one of the greatest opportunities we have together.”

MTD: The Michelin in Motion strategy calls for 20% to 30% of the company’s total

24

03_MTD_AttractingCustomers_Michelin_AutoService.indd 24

sales to come from “non-tire businesses” within the next 10 years. It also outlines several areas where Michelin plans to invest and expand, including the services and solutions sector. Can you tell us more about the Michelin in Motion strategy, how it will come to life in North America and the role that independent tire dealers will play in delivering that vision?

Garcin: I joined the company almost 19 years ago and this is by far the most defining moment I’ve experienced in the group. We (recently) announced the acceleration of our strategy, which we call the Michelin in Motion strategy.

We’re in motion for our customers, we’re in motion for our people and we’re also in motion for the environment around us. And we intend to execute that strategy while focusing on three inseparable criteria: people, profit and planet.

There are three business segments (where) we want to accelerate our growth.

The first one is our tire business. We believe the automotive market is on the cusp of its largest revolution ever and we see a lot of opportunities to bring new solutions.

The second business field is around tires. This is where we will accelerate our breakthroughs around services and solutions — leveraging our data capabilities that we have on truck tires and passenger car tires.

We want to have all of our passenger tires equipped with RFID by 2023 and then leveraging these capabilities with the great service network we have. This is where we are going to accelerate to deliver new service mobility offerings.

The third pocket of growth is what we call ‘beyond tires.’ Here we have different business segments. We have the medical sector. We have 3D printing. That is also a technology we have been developing in-house, so that we can, for example, use it to design new (tread) sculptures that are self-regenerating, so the more they get worn, the more open the sipes will be — so that grip can be maintained all (during) the tire life. That’s an exciting feature that we are able provide in our tires and it’s born thanks to our homemade technology in 3D printing — and closing that growth ‘beyond tires’ with probably one of the most important ones, which is in high-tech materials.

And (you may say), ‘OK, Alexis, this is far from the tire business,’ but it is not.

Yes, it will open growth to new business territories, like aerospace, for example, but it’s also a way for us to have access to new materials that will be much more renewable and much more recyclable and that we will use to bring to the market by 2050 a 100%, fully renewable, recyclable tire.

At the end, everything is connected to mobility and to motion ... but we have to do that with the protection of the environment.

It’s not ‘either or’ — it’s ‘and.’ We have to develop our people, our profit and the planet at the same time.

This is why it’s very exciting and at the core of our strategy.

MTD June 2021

6/2/21 9:57 AM

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5/25/2021 8:46:31 AM

Executive interview different materials and different expertise to make sure you are able to combine all of the performance that is expected by car manufacturers and end users.

“The fact we have a car parc that is going to be electrified is a really unique opportunity,” says Garcin. “I really encourage our partners to invest in that segment so that we can really be ready to understand what are the specific features those end users request and what are the right tires we need to put on those cars.”

MTD: As tire dealers continue to diversify the offerings they make available to their customers, can you elaborate on your plans for Michelin’s services and solutions business and how dealers will benefit from what will be developed?

Garcin: Our tire dealers are at the center of our strategy. We know today that the younger generation is already much more sensitive to the environmental question than maybe the older generation. By the fact that we are investing in (this) domain, we will be the ones that will support our dealers to have the right value proposition in the future because those environmental features in our tires will be even more important than (they are) today. The role of the tire dealer will be critical because we don’t invest in our own capabilities to deploy and execute those services. We do that with our service network partners and with retailers because we believe that there is no way we can do that today alone.

Because of the nature of the thing now — that everything is getting digital and we have to move fast — we have to work in an ecosystem. That’s why I truly mean it when I say our dealers are at the center of our strategy.

MTD: Currently, electric vehicles (EVs) make up a small percentage of the North American vehicle population, but that is expected to change. What will the shift

26

03_MTD_AttractingCustomers_Michelin_AutoService.indd 26

MTD: Minimizing performance tradeoffs has always been an aspiration of tire manufacturers, but it seems even more critical now with the various dynamics that EVs present.

Garcin: Exactly. We’ve recently launched two tires — both in Europe — and both are about to come to North America. The first is on the passenger car (side). We call it the e.Primacy and this tire provides up to 7% more range for electric vehicles because of its optimization of rolling resistance.

And we just unveiled the Pilot Sport EV, which is a specific tire designed for electric sports cars.

This tire is providing up to 37 miles of additional range because of its unique ability to minimize rolling resistance, while making no compromise on longevity, wet grip and safety.

to EVs mean for tire dealers and how should they prepare for this new reality?

Garcin: This is one of the greatest opporMTD: As the light at the end of the tunities we have together. You might think COVID-19 tunnel appears on the horizon, the evolution is slow, but what I can tell what’s your take on the North American you from what I’ve seen all over the world tire market for the rest of the year and is that this trend is going to accelerate into next year? dramatically, including in the U.S. There is Garcin: Since March, we’re now compara massive wave that is surging all over the ing ourselves to 2019 and what I can tell world and (with) the (you) is that today we latest announcements are seeing businesses we’ve seen in the U.S., that are recovering to ‘I believe the automotive it’s going to happen pre-COVID levels. market is on the cusp of here, too. its largest revolution ever.’

What does that MTD: What are the top challenges facing mean for us? It’s a — Alexis Garcin, strong opportunity Michelin and other chairman and president, because those tires tiremakers who Michelin North America Inc. will require an enoroperate in the North mous amount of technology. It will help our American market over the next few years? dealers to differentiate ... tires because to be Garcin: Given the dynamics of our market, able to maximize the range of the vehicle ...

I see many, many opportunities. The fact we without compromising wet braking, safety have a car parc that is going to be electrified, and the longevity of the tire, you need to this is a really unique opportunity. And I really encourage our partners to invest be an expert and have strong expertise in high-tech materials. And I think this will in that segment so that we can really be drive different business to our partners. ready to understand what are the specific features that those end users request and MTD: As EV technology evolves, tire what are the right tires we need to put on technology will have to evolve along with it. those cars.

Garcin: Absolutely. Again, it comes back Our job as a mobility provider is to to the question of expertise that tire manuprovide our dealers with solutions that facturers will have to master very soon — if will address the (needs) of the end user not already today — because you need today and also tomorrow. ■ MTD June 2021

5/25/21 2:22 PM

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Auto service Ahead of the game Sell suspension work proactively

“You can’t put $1,000 worth of tires on a car and not make sure the customer’s suspension is right,” says 2016 MTD Tire Dealer of the Year Alpio Barbara, owner of Redwood General Tire in Redwood City, Calif., pictured right.

‘Stay in your lane’

Sell suspension work proactively, rather than reactively, says Jeffry Gardner, marketing vice president, GB Auto Service Inc. “It’s not like your suspension is great up until 49,999 miles and then the next mile, all of a sudden, it’s no good anymore. It is a gradual decrease.

“You don’t realize the suspension is doing poorly until you get it replaced and have brand new components there.”

Vehicle inspections present a great opportunity to point out needed suspension work, according to Gardner.

“Any time we touch a vehicle, whether we are doing tire work or an oil change, that is part of our standard safety inspection,” he says.

SUSPENSION WORK IS ABOUT LISTENING TO THE CUSTOMER, SAYS BARBARA By

Ron Ledgard

T

he customer is always right.” It’s an axiom we all have heard for a long time.

For Alpio Barbara, owner of Redwood General Tire in Redwood City, Calif., that’s the only way to do business — especially when it comes to auto repair, where customers can do a great deal of research online before ever setting foot in a tire store.

“If you go on the internet, you can read everything we are going to do for a car, from A to Z,” says Barbara, who was the recipient of MTD’s Tire Dealer of the Year Award in 2016. “From taking the wheel off to putting the wheel back on, they know exactly what we are going to do.”

To Barbara, who has been in business since 1969, selling tires and suspension work go hand-in-hand.

“You can’t put $1,000 worth of tires on a car and not make sure the customer’s suspension is right,” he says.

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03_MTD_AttractingCustomers_Michelin_AutoService.indd 28

“The customer knows what a control arm is nowadays on some of these cars — not like it was before, where we would say, ‘We are going to replace your ball joints.’

“They would say, ‘Ok, fine — whatever you’re talking about.’

“It was a different time.”

One technique he recommends is talking with customers about suspension work when they come in for other services, such as oil changes.

In conversation, Barbara says “stay in your own lane” a lot.

He says what he means by that is doing the work you know well and researching the work you don’t until you completely understand it.

“You’ve got to stay in your own lane,” he notes.

“I don’t care if it’s a simple tire. Some of the customers we have know more about the product than we do.

“They have researched it and they know

When it comes to suspension service, “if you can get one tech designated to do that kind of work, you are way better off,” says Barbara.

exactly what they want. You just have to stay in your own lane.”

This applies to tire dealerships that want to get into suspension work.

“It isn’t just jacking (a car) up and moving on. There are a lot of little nuances.”

Always listen to the customer, Barbara advises. “The same thing (applies) with suspensions,” he says. “If (a customer) wants a certain brand, just do what he wants.

“He has talked to his buddies and he has talked to everyone about that brand.

“As a rule, try to stay with what the customer wants.” ■ MTD June 2021

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Commercial Tire Dealer™

200 LOCATIONS WITHIN 36 MONTHS SOUTHERN TIRE MART AT PILOT FLYING J HAS BIG PLANS By

Mike Manges

W

hat happens when you combine Southern Tire Mart LLC, the largest independently owned and operated commercial tire dealership in the United States, with one of the country’s largest truck stop chains, Pilot Flying J, which enjoys an established presence in more than 40 states?

The answer: the formation of a commercial tire giant, Southern Tire Mart at Pilot Flying J. Announced six months ago, the new entity has already assumed management and operations of 35 existing Pilot Flying J Truck Care maintenance facilities.

Another 100 locations are slated to open within the next 12 months.

And Southern Tire Mart at Flying J says it wants a total of 200 outlets up and running within the next three years.

The company hasn’t wasted any time identifying sites on Pilot Flying J properties, according to John Boynton, president of Southern Tire Mart at Pilot Flying J and Southern Tire Mart executive.

“Plans for 26 initial new construction sites have begun and we are actively working on identifying the next 24 sites to bring the first wave of construction projects to 50.

“Our focus is on where our customers’ lanes of traffic are taking them and ensuring we are building a presence to serve their needs.”

Also in CTD Truck tire market shifts into high gear but challenges linger .........................32 Emphasizing ag: Best-One of Indy continues growth with an eye on commercial ..........................................40 Electric trucks pose challenges for tiremakers: Range, torque and weight are concerns .......................................42 Yokohama Off-Highway ramps up ...44

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04_MTD_CTD-CommerciallyViable.indd 30

“Our focus is on where our customers’ lanes of traffic are taking them and ensuring we are building a presence to serve their needs,” says John Boynton, president of Southern Tire Mart at Flying J. (Pictured, Southern Tire Mart at Pilot Flying J Store Managers Josh Day, left, and William Pernell with a new road service truck.)

‘A NATURAL FIT’

Truck stop chains have sold tires and retreads for decades.And there is a history of tire manufacturer-owned truck tire sales and service operations setting up shop on — or next to — truck stop properties.

But rarely has an independent tire dealership formed such a close, branded partnership with a national truck stop chain.

The idea was to find a way “that Southern Tire Mart could extend our services in the immediate markets we serve onto a much broader scale to the extended markets Pilot Flying J serves,” says Boynton.

Southern Tire Mart, which is based in Columbia, Miss., has more than 140 commercial/retail outlets throughout Alabama, Arizona, Arkansas, California, Florida, Georgia, Louisiana, Mississippi, Nevada, New Mexico, Oklahoma, Tennessee, Texas and Utah.

Boynton says Southern Tire Mart recognized that Pilot Flying J “caters to a very impressive customer base that has been asking them to expand” its service capabilities.

“The value that we, as Southern Tire Mart at Pilot Flying J, want to capture is greater

consistency of service and convenience with our customers.”

RETREADS ADD VALUE

All Southern Tire Mart at Pilot Flying J locations will offer Bandag retreads, most of which will be supplied by Southern Tire Mart retread plants.

The dealership is the largest retreader in the United States, according to MTD’s 2021 Top 50 Retreaders List, which was published this past April.

Southern Tire Mart has 24 plants that together produce an estimated 5,700 medium truck tire retreads per day.

Providing retreads “is a critical piece of the unique value we can achieve for our customers,” says Boynton.

“Building this network within the markets our customers serve gives us a greater opportunity to improve their asset management and cost reductions.

“The opportunity to capture and retain fleet casing assets — as well as having them available to put back into service, when and where they need to be — will be a key piece of driving the value.”

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Commercial truck tires

UP AND RUNNING

TRUCK TIRE MARKET SHIFTS INTO HIGH GEAR — BUT CHALLENGES REMAIN By

Mike Manges

Freight indicators — such as loadings, tonnage and rates — were up substantially during the first six months of 2021. “Overall, the first half of the year exceeded our expectations,” says Bob Klimm, director of commercial tire sales, Sumitomo Rubber North America Inc. “That’s exactly what we’re hearing from our dealers.”

T

he medium truck tire segment has shifted into high gear as the trucking industry continues to gain momentum.

“Demand for commercial vehicles in North America is about as good as we’ve seen in 35 years of monitoring heavy-duty aftermarket conditions,” Kenny Veith, president of ACT Research, which tracks the North American trucking industry, recently said.

“The economy is carrying considerable pent-up industrial and consumer demand, with stimulus programs adding fuel to the fire.”

ACT Research’s gross domestic product (GDP)-based freight proxy “anticipates freight volumes jumping by 12.6%” during 2021.

However, some challenges for commercial tire manufacturers and dealers remain.

MTD recently asked tiremakers and marketers to comment on the truck tire market’s performance during the first half of the year and also provide a preview of what commercial tire dealers can expect to see during the second half.

Here’s what they had to say. (Responses are listed in alphabetical order, according to company name.)

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MTD: What was the North American commercial truck tire market like during the first half of 2021?

ABHISHEK BISHT, assistant vice president, Americas, Apollo Tyres: The first half of 2021 saw much of the same continuation of commercial activities from 2020, but developing gradually. The trucking industry … continued to show pockets of continuous improvement, especially in the essential business categories. The increase in last-mile deliveries skyrocketed, placing increased demand on tire manufacturers to shift production schedules to accommodate sizes that addressed this segment. Any slowdown in this trend is highly unlikely.

BEN JOHNSON, director of marketing, Bridgestone Americas Tire Operations, U.S. and Canada: The North American commercial truck market has shown strength and resilience thus far in 2021. Overall, freight activity has been consistent versus prior-year since October 2020, with March being up nearly 10% compared to prior-year. The category has shown growth versus prior-year across replacement, OE and retreading.

MTD June 2021

6/1/21 9:28 AM

WALT WELLER, senior vice president, China Manufacturers Alliance LLC (CMA)/Double Coin: The North American commercial truck tire market has been one of vigorous growth through the middle of May 2021, both in the OE market and replacement market. When compared to the first half of 2020, 2021 growth has been quite remarkable, with growth in excess of 30% for OE and more than 20% for replacement. This is a trend that should continue through the end of 2021, but there are headwinds (see sidebar on page 36.)

TOM FANNING, head of U.S. market for truck tires, Continental Tire the Americas LLC: The tire market was booming during the first quarter of 2021, with truck tire replacement shipments up 11% year-over-year, primarily among U.S. Tire Manufacturers Association (USTMA) members, who are up 12.5% year-over-year.

Booming growth continued during 2Q, especially when compared to 2020 April/May, which were heavily impacted due to COVID-19.

Freight indicators such as loadings, tonnage and rates were also up significantly. The trucking industry is currently in a very positive swing, with momentum heavily favoring shippers due to increased demand versus drivers available.The tire market will cool down, but remain strong in the second half of year, essentially an inverse of the trend witnessed in 2020 due to COVID-19.

GARY SCHROEDER, executive director, global truck and bus tire business, Cooper Tire & Rubber Co.: While most expected 2021 would be better than 2020, what the industry has seen so far is much stronger demand than most forecasted. The general shift to higher goods spending and less service spending has really boosted freight. This can be seen in strong Class 8 and dry van orders. In addition, business-to-consumer activity doesn’t appear to be slowing down, which is increasing final-mile freight.

ARMAND ALLAIRE, executive vice president, commercial sales, North America, Giti Tire (USA) Ltd.: It was very healthy in demand, though challenged by the availability of containers and ship space to move containers. Cost increases from logistics often became a daily challenge. Still, consumers need their products and expect them to be delivered and that has kept a healthy pressure on the trucking community.

ROB WILLIAMS, vice president of U.S. TBR sales, Hankook Tire America Corp.: Current commercial truck tire demand is extremely strong and has continued to rise, even after a very strong 4Q 2020. Demand is far exceeding current supply in the market.

Dealer supply is becoming very limited, as well, with manufacturers struggling to get product shipped and received in a timely manner.

MARSHALL GILLESPIE, manager of commercial and specialty proprietary brands, Hercules Tire (American Tire Distributors Inc.): Hercules has seen significant growth in lightand medium-duty truck tire sales. Delivery companies, such as Amazon, have grown their fleets to meet new demand with the explosion of e-commerce. The North American commercial truck tire market overcame many factors in 2020. With that said, demand rolled over into the first half of 2021.

ARUN BAJORIA, director and president, international operations, JK Tyre & Industries Ltd.: The North American economy is surging, putting the commercial truck tire market in a bright spot. With an intent to deliver goods on time, the sector is experiencing high demand for trucks and trailers. The orders from original equipment manufacturers continued to flow at an impressive pace. However, there has been an escalation in the cost w w w . M o d e r n T i r e D e a l e r. c o m

04_MTD_CTD-CommerciallyViable.indd 33

of raw materials. This was followed by an increase in prices by several manufacturers and is likely to elongate the cycle further.

RICK PHILLIPS, CEO, Keter Tire USA Inc.: Trucks are moving, so the truck tire business has been pretty good, but with a few challenges. Talking with our dealers, the three things we hear the most about are demand, supply and delivery. Demand for TBR products has been strong, but it seems to come in surges, making it harder to forecast. Supply has been spotty and the delivery of products, especially from off-shore, has been unpredictable. In spite of all of this, servicing dealers have done a great job of adapting and keeping their customers’ trucks on the road.

JINKI SHIN, sales management manager, Kumho Tire USA Inc.: TBR demand grew explosively since November of last year.

The trend persists in 2021, along with recovering new truck sales.

I am hopeful about TBR sales for the first half of 2021, for both OE and replacement.

PIERLUIGI CUMO, director of marketing, on-road, Michelin North America Inc.: The North American tire market has continued to post-pandemic momentum from the second half of 2020 to the first half of 2021. This was primarily driven by the continued transition of consumer spending from services to goods that need to be transported around the country. The rise in rates for truckload and less-than-truckload carriers has brought profits into a freight market that cannot keep up with demand.

KEN COLTRANE, director, marketing and product development, Prinx Chengshan Tire North America: Our growth has been strong. We are still a new company to the market, though, and if anything, that growth was hampered by the shipping challenges we’ve been experiencing.

ALAN EAGLESON, TBR segment manager, Sailun Tire Americas: The first half of 2021 was not without challenges.

Although orders remained strong, we had to work very hard in dealing with freight challenges, including availability of containers, continued increase in demand for goods, the Suez Canal shutdown and increased freight rates. Truck tire inventories on the ground in the United States remain below recent averages and customer demand remains strong. This has created new opportunities for aftermarket commercial tire sales in both tier-two and tier-three truck tire brands, which our team has been focusing on.

BOB KLIMM, director of commercial tire sales, Sumitomo Rubber North America Inc. (SRNA)/Falken:The year started off with very strong demand in the first quarter and saw a continuation through the second quarter. Overall, the first half of this year has exceeded our expectations. And that’s exactly what we’re hearing from our dealers.

While all segments are pointing up, most have said their commercial business has surpassed their forecast. That, of course, is good news. With many manufacturing industries operating at their highest levels in quite some time and with construction starting to rebound, we could very well see robust demand continue throughout the year.

BILL DASHIELL, senior vice president, commercial tire division, TBC Brands: Overall, the commercial truck tire market has experienced very strong demand, especially in tier-three and tier-four. Imported truck tires faced global logistics challenges, applying supply chain pressure across the industry. In the first half of 2021, significant raw material and freight cost increases caused manufacturers to raise pricing.

33

6/1/21 9:28 AM

Commercial truck tires U.S. Replacement Tire Market Share at Mid-Year

“While most expected 2021 would be better than 2020, what the industry has seen so far is much stronger demand than most forecasted,” says Gary Schroeder, executive director, global truck and bus tire business, Cooper Tire & Rubber Co. “The general shift to higher goods spending and less service spending has really boosted freight.”

JOAQUIN GONZALEZ JR., president, Tire Group International Inc.(TGI)/Cosmo: The best way to describe the North American truck tire market in the first quarter was ‘robust.’ It is a segment of the business that had been playing catch-up ever since the onset of the pandemic. The first quarter saw demand rise to pre-pandemic levels, with much of that catch-up happening in the later part of the quarter. The question moving forward will be if there is enough supply to meet the rising demand across all tiers.

DAVE JOHNSTON SR., manager, commercial products and business development, Toyo Tire U.S.A. Corp.: For the U.S. market, the industry was up about 12% versus last year in 1Q. 2021 began with a strong carry-over from 2020 for commercial truck tires across dealer groups. Sales continue to reach new highs with demand continuing to climb. Global logistics challenges, from container availability to shipping bottlenecks and driver shortages, continue to be a challenge.

CHARLES LUTHER, northeast regional manager, Triangle Tire USA: The first half of the year started slower than expected.

However, business did pick up towards the end of the first quarter.

The second quarter was only hampered by supply constraints. As supply increases, we anticipate a growth year in the TBR sector.

BRIAN SHEEHEY, vice president of marketing, Yokohama Off-Highway Tires America Inc.: The first half of 2021 was hot.

We expected an uptick after 2020, but the demand was high and it’s been sustained across all categories in the truck market — longhaul, regional, construction — everything. The bad news in all this has been costs. The cost of raw materials has gone up substantially and the cost of shipping has been through the roof. There’s been a global shortage of containers, disruption at the Suez Canal and significant delays at ports worldwide, which add to the costs because the meter is always running on those cargo ships. We’re trying our best to mitigate some of those shipping costs.

DAN FUNKHOUSER, vice president of commercial sales, Yokohama Tire Corp.: It was a continuation of the second half of 2020. Fleet demand was surprisingly strong throughout 2020 and continues to be in 2021. Most resellers, dealers and truck stops were selling 2019 inventory to fleets in the beginning of 2020. After the initial COVID-19 slump in April 2020 and the first half of May,

34

04_MTD_CTD-CommerciallyViable.indd 34

BRAND

SHARE

Bridgestone

13.5%

Michelin

13.5%

Goodyear

9.5%

Yokohama

8.5%

Continental

7.0%

Firestone

7.0%

Double Coin

5.5%

Falken

3.5%

Hankook

3.5%

Toyo

3.5%

Roadmaster

3.0%

BFGoodrich

2.0%

General

2.0%

Sailun

2.0%

Sumitomo

2.0%

Westlake

1.5%

Gladiator

1.0%

Triangle

1.0%

Uniroyal

1.0%

Other

9.5%

*BASED ON AN ESTIMATED 8.5 MILLION UNITS SHIPPED THROUGH MID- MAY

dealer demand started to increase. That demand has continued to remain strong ever since. As manufacturers, we continue to do all we can to keep up with demand. The big change is the huge number of last-mile and home deliveries that are taking place. This has led to a large increase in demand for 16-inch to 19.5-inch products.

MTD: What trends do you anticipate during the second half of the year?

BISHT (APOLLO): Pent-up fatigue from the pandemic is beginning to abate now that millions of Americans are getting vaccinated and people begin to feel safe again. With this return to a hint of normalcy, economists predict that the U.S. GDP will grow 7% to 8% this year. As the recovery continues and Americans feel less constrained, they will begin to juice the economy. As a result, money will be spent on goods that are delivered by trucks. This means every segment of the trucking industry will strengthen.

JOHNSON (BRIDGESTONE): We expect demand to remain high across market segments as the North American market continues to rebound from the challenges of the pandemic. However, we expect that international supply chains of goods and materials will remain volatile and the lack of inputs to OE manufacturing may cause some disruptions in production. We anticipate this volatility will remain throughout the majority of the second half, but will begin to normalize as we move into 2022.

MTD June 2021

6/1/21 9:29 AM

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4/26/21 3:03 PM 5/21/2021 9:35:25 AM

Commercial truck tires WELLER (CMA): There has been a lot of discussion about the growth of the last-mile (segment) driving the market and while that certainly has been a factor, the major inputs for growth have been the pent-up demand in OE and replacement demand driven by lack of domestic TBR inventories. With these factors leading the way, the outlook for the second half of 2021 is continued strong demand. The potential spoilers are commercial driver shortages; the risk of excessive inflation, driven by rapidly rising costs associated with the supply chain, as well as government spending; availability of labor; and continued escalation of ocean freight and rail costs.

FANNING (CONTINENTAL): Over the past decade, we have witnessed regional application shipments continuing to increase year in and year out, nearing long-haul volumes. However, most likely from COVID-19 impact in 2020, regional tire shipments fell 0.6%, while long-haul shipments actually gained 2.8% in terms of share, according to USTMA reporting. Despite this anomaly, the prior trend should maintain and eventually — potentially within the next five to 10 years — regional tires shipments will eclipse long-haul volumes.

ALLAIRE (GITI): More of the same, with the increase in last-mile deliveries keeping demand on intermediate and short-run trucks and drivers.

WILLIAMS (HANKOOK): We believe the second half of the year will bring many of the same challenges as the first half, with continued supply issues remaining until shipping lanes are able to catch up. Expected demand for OE trailers should continue to

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Supply chain blues

Slowdowns, freight rates remain pain points The ongoing slowdown of shipments from southeast Asia— coupled with high freight rates — will continue to present problems, especially for commercial tire dealers who are heavily reliant on off-shore-built products.

“The disparity between domestic production in the U.S. and demand has grown, with domestic production supplying approximately 50% of domestic demand,” says Walt Weller, senior vice president, China Manufacturers Alliance LLC, which sells the Double Coin brand.

“This means imports (from) both domestic manufacturers and import manufacturers will be required to satisfy the market.

“Domestic production is expected to grow, but at a much lower rate — in the neighborhood of 5%. With so much of the country's tires coming into the market from overseas, the supply chain is vitally important.

“Ocean freight costs have increased three-fold from 2019, with many ocean freight companies taking container ships off-line, creating less availability of vessel space.

“Inland freight costs have also risen dramatically, both in the over-the-road market, as well as the rail market.

“This is a formula for continued rising prices of truck tires, as well as shortages of product — both of which we are seeing in the market today.” grow from pent-up demand and lack of production in 2020. With expected increases in shipping costs, raw materials and possibly natural rubber shortages, we also expect to see the continuation of price increases.

GILLESPIE (HERCULES): During the second half of 2020 and the first quarter of 2021, we saw a shift toward the value-tier brands in the replacement market. We see this trend continuing into the second half of 2021. We’re actively monitoring the progress of proposed infrastructure bills, which could continue the growth in the commercial replacement tire market.

BAJORIA (JK TYRE): One of the biggest trends is something we are already witnessing — the acceleration of prices. A combination of factors — such as increased raw materials, higher shipping expenses and changing market conditions — are expected to further push prices. With greater reliance on e-commerce and demand for last-mile delivery services, a significant rise in medium truck tire demand is expected to quickly surpass pre-COVID-19 levels. Consumers are now helping shape mobility by opting for door-step delivery.

PHILLIPS (KETER): We are pretty bullish on the rest of the year. As things continue to open up around the country, demand for TBR products will stay strong, especially those designed for vehicles in the e-commerce, construction and oil field segments.

We are seeing a spike in orders and runs on certain products to the extent there is a bit of concern about product shortages. There is definitely an increased appetite for hot SKUs. SHIN (KUMHO): For the past six months, demand for TBR tires has been higher than supply. The increase in commercial trucking demand will keep TBR demands also high, but certain

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04_MTD_CTD-CommerciallyViable.indd 36

MTD June 2021 5/27/21 10:00 AM

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Commercial truck tires

“Increased COVID-19 inoculations and the resulting opening of the economy, combined with pent-up demand for truck tires to refill shelves, point to a strong second half,” says Dave Johnston Sr., manager, commercial products and business development, Toyo Tire U.S.A. Corp.

risk factors — such as lagging replacement supply due to port congestion and increasing OE demands — will eventually bring down sales of TBR tires in the second half.

CUMO (MICHELIN): The need for increased capacity within an expanding economy will give fleets incentives to continue expansion. OE markets are back on the upswing and the replacement tire market should benefit from the maintenance cycle of vehicles purchased within the past few years.

COLTRANE (PRINX): Trucking will increase, trying to get more product inland from ports. This will mean more long-haul miles. The question is how much the (truck) driver shortage will impact that.

EAGLESON (SAILUN): Like all manufacturers and shippers of goods, the cost of raw materials has been impacted by freight cost. As we’ve continued to communicate to our valued customers, it looks like the current freight issues will continue through the rest of 2021 and into 2022. As life returns to some semblance of normal, service-based spending may also return. Until then, the majority of consumer goods being purchased are transported by ship, rail and road. Truck tires are a big component of that delivery chain.

KLIMM (SRNA): Demand will continue to increase throughout the second half of 2021. The industry recovery will be segmentdriven as we reopen the market for commerce. As industry continues to open up and restrictions are pulled back, we expect to see an aggressive uptrend in the replacement tire business.

The last-mile segment will increase tire replacement behavior and timing, (as) 19.5-inch is now the third most popular size in the OE industry.

DASHIELL (TBC): Global logistics issues due to COVID-19 will continue to challenge the commercial truck tire market, especially on import tires. Demand for low-profile tires also will continue, while a resurgence of urban market tires will occur as the economy rebounds.

GONZALEZ (TGI): From a market perspective, I expect

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demand to remain strong. The challenge will be securing enough product to meet it. From a product perspective, I think we will continue to see migration from traditional long-haul and regional applications to more of a super-regional, all-in-one tire. This is from manufacturers rolling out new generations of models, as well as meeting today’s driver demands.

JOHNSTON (TOYO): The second half of 2021 is expected to continue on a strong growth path. Increased COVID-19 inoculations and the resulting opening of the economy, combined with pent-up demand for truck tires to refill shelves, point to a strong second half. Logistics bottlenecks, combined with high shipping volumes, will need to balance with market demand to improve the situation. Equipment demand and driver shortages should start to improve as we near the end of 2021 and fleets are poised to grow as they ramp up to meet unprecedented demand in several sectors.

LUTHER (TRIANGLE): With the ongoing recovery from the COVID-19 pandemic, we anticipate growth in the TBR market for the rest of 2021, going into 2022. Product shortages exacerbated by the pandemic and the onslaught of the global logistics breakdown have created some chaos in the potential growth of the TBR market.

However, demand is there that will easily drive a growth market for TBR products, if the industry is able to deliver.

SHEEHEY (YOKOHAMA OFF-HIGHWAY): The second half of the year is still going to be robust and the effect of today’s supply chain disruptions will hit then, so dealers may struggle a bit more to get the truck tires they need.

FUNKHOUSER (YOKOHAMA TIRE CORP.): With both OE and replacement demand being very strong, there will be a lot of pressure on tire manufacturers to keep up with supply. Once the backlog at the ports and the container issues are corrected, off-shore production should help relieve that pressure. With lower-than-normal store inventories, freight demand will continue to be strong and thus the demand for commercial truck tires will also be strong.

MTD June 2021

6/1/21 9:30 AM

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5/26/2021 8:47:33 AM

Ag tires

EMPHASIZING AG BEST-ONE OF INDY CONTINUES GROWTH WITH AN EYE ON COMMERCIAL By

Joy Kopcha

Finding people and finding tires Scott McKenzie, vice president of BestOne of Indy’s commercial division, has grown up in the industry, learning from his mother, Dorothy, who was one of the founding partners of the company. We asked McKenzie to weigh in on three big issues facing the commercial tire business in 2021:

Medium truck tires remain an important part of Best-One of Indy’s overall business.

But as the 13-location company expands its footprint beyond the Indianapolis metro area, it’s also servicing more ag tire customers.

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hen Indy Tire Centers Inc., dba Best-One of Indy acquired two R&T Tire stores this spring, it was the latest evidence of the company’s growth.

But just as important, it gave Best-One of Indy another entry point into Indiana’s farming economy.

“We’ve been a pretty diverse company since we started,” says Scott McKenzie, vice president of commercial for Best-One of Indy. “We’ve always provided ag and OTR and truck tire services, but as we expand out of the major metropolitan area of Indianapolis, it’s definitely an emphasis on ag.”

With Best-One of Indy’s home base in Indianapolis, a city that serves as the intersection of four major interstates, medium truck tires have long been an important part of the dealership’s business. (The Indiana Department of Transportation says Indiana is the nation’s fifth busiest metro area for commercial freight traffic, with 724 million tons passing through annually.)

Best-One of Indy serves a diverse clientele

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and its business is a 50-50 mix of retail and commercial. McKenzie says the R&T Tire acquisition adds to both sides of that business and gives Best-One of Indy 13 locations in central Indiana.

The R&T Tire store in Noblesville, an Indianapolis suburb, is a retail outlet and the location in Tipton, about 50 miles north of downtown Indianapolis, is a commercial location with “a heavy emphasis on ag.

“We are definitely getting more in the ag business because we have the footprint for it now,” says McKenzie. That includes a commercial store in Lafayette, added in late 2020, “that is surrounded by agriculture.”

The store in Tipton is about 20 miles away from an existing store in Kokomo and McKenzie says Tipton “complements Kokomo to reduce our response times to service calls and better serve our fleet customers.”

The company also offers commercial and ag tires at its location in Columbus, Ind., the former Frank Anderson Tire Co., which it acquired in 2019.

Last year, the company committed to expanding its ag business in Kokomo. It hosted a breakfast for farmers, supported county

Hiring. The search for employees, McKenzie says, is a careful balance of watching payroll and securing good workers when they present themselves. He says Best-One of Indy is “erring on the high side.” That means if the company needs to hire one technician, but finds two qualified employees during its search, “we’re going to hire both of them. You don’t know what tomorrow brings.”

Tire supply. Truck tire manufacturers with domestic production are bouncing back, but McKenzie says “we’re having problems with the import brands” and a majority of the issues are outside of the supplier’s control — such as the backup of ships and containers at West Coast ports. “But they’re getting better. Our fill rates for our traditional suppliers are in the 70th percentile (and are) still on the rise.”

Opportunities for new brands. As tiremakers have tried to ramp up production to meet demand in the last year, there have been shortages. McKenzie says that has presented opportunities for other brands to fill in the gaps.

“We’re not going to not sell tires to our fleets. We are their trusted provider to keep them going. We’ve switched brands to keep their trucks going. It will be interesting to see how fast (certain brands) transition back — if they do.”

MTD June 2021

6/1/21 9:30 AM

fairs in the region and found other ways to become involved in the community. “We increased our ag sales in Kokomo by 84%,” says McKenzie.

“We saw the model.

We worked the model.

Scott McKenzie says Best-One of Now it’s wash, rinse Indy is ready to and repeat for the other expand its new mechanical truck locations.”

It’s that kind of repair services to more markets formula that will help — as soon as the company continue it hires more to grow, he says. technicians.

“We’re looking at opportunities to put more dots on the map in the central Indiana area,” says McKenzie. “We’ll take every opportunity that comes to us and evaluate it. Being 50-50 retail/commercial is a nice balance when you look at cash sales and national account sales.”

Best-One of Indy is “probably 50% faster” than the OE dealerships.

Mechanical work is “a profitable segment. That’s why we’re focusing on and expanding that.”

It’s currently available within a 75-mile radius of Indianapolis, “but we definitely have plans to expand mechanical into all of our commercial and combo stores.”

So far that mechanical work is dependent on a team of six or seven technicians, some of whom have split duties. Best-One of Indy’s lead technician is currently off work after breaking his leg.

“I would love to move to 10 tomorrow if the right people walked through the door,” says McKenzie. “We have trucks built for them, waiting to get on the road.”

INVESTING IN MECHANICAL REPAIRS

In the last 18 months, Best-One of Indy has added truck mechanical services for fleets as a way to fill yet another need.

McKenzie says the dealership offers 24-hour mobile mechanical service, as well as dedicated mechanical services for fleets and drive-in service at the company’s commercial locations. The menu includes alignments and Department of Transportation inspections for trucks and trailers, plus things like chassis and suspension work and light line repair.

“The market needs it,” he says. “A lot of us are getting into it.”

Here’s why he believes more independent tire dealers are adding those services.

“It seems like it’s catching up to retail.

Back in the day, you were a tire company, but now you’re doing tires to complement your service business and the model is being expanded to commercial. You have these relationships with fleets, but fleets have a need for mechanical services, so why not offer those and help them out?

“These days if you take your truck to an OE truck dealership, their wait time is three weeks. We experience it when we take our trucks there and it’s something we can’t service ourselves. We pride ourselves on cutting down the downtime.”

It depends on the complexity of the job and availability of parts, but McKenzie says w w w . M o d e r n T i r e D e a l e r. c o m

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Commercial truck tires

ELECTRIC TRUCKS POSE CHALLENGES FOR TIREMAKERS RANGE, TORQUE AND WEIGHT ARE CONCERNS By

Mike Manges

E

lectric vehicles (EVs) for personal use are getting a lot of press, but electrification is coming to the domestic heavy-duty truck market, too.

Some of North America’s largest truck manufacturers — including PACCAR, Volvo Trucks North America and Daimler Trucks North America — are rolling out new electric rigs, while companies like Tesla, Nikola and BYD continue to take electric truck orders.

What impact will electric trucks have on commercial truck tire design and construction?

As with electric cars, dynamics like range, torque and weight are concerns, say truck tire manufacturers.

Bob Klimm, director of commercial tire sales, Sumitomo Rubber North America Inc., says “the expectation of the replacement tire to support electric heavy-duty vehicles by maximizing driving distance is assumed to include some combination of rolling resistance, while maintaining mileage life and traction.”

Tires also will need “to withstand higher torque based on the sudden acceleration capabilities” of electric trucks, says Rob Williams, vice president of U.S. TBR sales, Hankook Tire America Corp.

“In electric vehicles, you get the maximum torque when accelerating right from the very start,” says Tom Fanning, head of U.S. market for truck tires, Continental Tire the Americas LLC. “Tires on electric vehicles can therefore be subject to greater levels of stress during acceleration, which in turn affects their endurance and wear values.”

Charles Luther, northeast regional manager, Triangle Tire USA, says “the demands of tires on (electric trucks) will quite possibly differ from standard or even SmartWay-approved tires. There will be increased emphasis on roll time and therefore increased emphasis put on reducing tire rolling resistance.”

Weight support will be another key performance attribute, according to Ken

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Electric trucks “require tires that can handle the additional load capacity due to extra weight from batteries, provide lower rolling resistance for increased range and offer wear life comparable to — or sometimes even better than — a standard tire,” says Ben Johnson, director of marketing, Bridgestone Americas Tire Operations, U.S. and Canada. (Pictured, a Volvo Class 8 VNR Electric truck leads a “clean truck parade” in Long Beach, Calif. Volvo brought the VNR Electric to North America in 2020.)

Coltrane, director, marketing and product development, Prinx Chengshan Tire North America.

“With truck tires, the additional weight associated with electric commercial trucks is going to translate into higher load capacity and ply ratings — moving away from 14-ply to 16-ply.”

“What we are seeing is heavier equipment than standard diesel-powered (vehicles) due to the increased weight of batteries,” says Alan Eagleson, TBR segment manager, Sailun Tires America. “This means a commercial vehicle tire must be capable of carrying a heavier load,” which, he notes, “shouldn’t be an issue since (truck) tires are typically over-engineered for their applications.”

Wear is another concern, says Rick Cunat, managing director of Kumho Tire USA Inc.’s Americas technical center. “The desire to maintain consistent tire performance from new tire to worn-out tire” may require tread patterns “that increase in amplitude or aggressiveness as the tire wears.”

“Electrification is a trend that will impact many different segments of the market,” says Ben Johnson, director of marketing, Bridgestone Americas Tire Operations, U.S. and Canada.

“The initial focus for tires used on regional and line-haul applications will likely (be) on low rolling resistance to contribute to vehicle range,” notes Pierluigi Cumo, director of marketing, on-road, Michelin North America Inc. Electric truck development will “push (tire) technology development ahead of schedule to meet the unique demands of this emerging market,” says Dave Johnston Sr., manager, commercial products and business development, Toyo Tire U.S.A. Corp.

“The performance characteristics of tires for electric vehicles are not that different from tires on fuel-powered vehicles,” notes Rick Phillips, CEO of Keter Tire USA Inc. Focus also “is moving more towards products that are application-specific and away from ‘one tire fits all.’”

MTD June 2021

5/25/21 2:34 PM

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OTR, ag and truck tires

YOKOHAMA OFF-HIGHWAY RAMPS UP MORE AG, OTR TIRES ARE ON THE WAY, SAYS NANAVATI

By

Mike Manges

Y

okohama Off-Highway Tires America Inc. (YOHTA) is rolling out new products and is further refining its “one-stop shop” concept, says Dhaval Nanavati, the company’s president. In this interview, he provides an update on the company’s third plant in India, market demand that YOHTA is seeing and more.

MTD: Alliance Tire Americas Inc. became YOHTA this past January. Why was the rebranding decision made? What are the benefits for both the company and its dealers?

NANAVATI: Yokohama, our parent company, decided to put everything under one umbrella to focus on customers in the offhighway arena. This leverages the strong legacy of the premium Yokohama brand and its 100-plus years and also leverages the continued strength of Alliance.

We think this will create a huge value for all of our stakeholders.

One, it creates a focus on the strength of each entity — the old Alliance Americas Tires and the old Yokohama Tire Corp. OTR business coming together under YOHTA. It provides a single point of offering for all of our products. It’s a one-stop shop for all the needs of the customer. It also offers a single program for all of our brands. It leverages and pools resources, data, IT — all under one roof — again, under the Yokohama brand.

The new entity offers products at multiple price points to meet our dealers’ needs. Each segment has a full portfolio and each portfolio has a complete product line.

MTD: YOHTA is now in the U.S. medium truck tire market with the Galaxy line. Are you pleased with the line’s acceptance?

NANAVATI: We are very pleased with the roll-out. The acceptance in the market has been great. It’s actually a very complementary product to our wide range of off-highway products.

MTD: You have maintained a robust new product launch schedule on the ag tire side with the Alliance brand. Will we see more in 2021?

NANAVATI: Yes. We have aggressively launched new products.

We target a certain percentage of growth each year. We want to be a leading player in terms of tire engineering and application and continue to offer unique products to customers to help them improve productivity and reduce costs.

MTD: What can we expect to see from the Galaxy OTR brand in 2021?

NANAVATI: On the Galaxy OTR side, we have an exciting lineup of new products, which we are planning to launch throughout 2021. It will be a very big year for the Galaxy OTR range. We also

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“We have seen very robust demand in OE and the aftermarket,” says Dhaval Nanavati, president of Yokohama Off-Highway Tires America Inc., formerly known as Alliance Tire Americas Inc. “As far as capacity, we are running to meet demand.”

are launching several products in the Yokohama brand and will expand the offering into a new segment.

MTD: On the OTR side, are you positioning the Yokohama brand above the Galaxy brand in terms of pricing?

NANAVATI: Yes. There is definitely going to be a two-tier approach, with two-tier pricing. Yokohama will be the premium segment and Galaxy will be the value segment we are focusing on.

MTD: How is the new plant in India coming along? Is it still on track to begin operating during the first quarter of 2023?

(Editor’s note: Last September, Yokohama announced it will build a new specialty tire plant in India. The company has two other plants in that country.)

NANAVATI: Construction has started and we estimate shipping new tires out of the plant in early to mid-2023. Every year we invest in our factories in India on a very consistent, regular basis.

MTD: Are you optimistic that the markets your company serves will continue to see healthy demand?

NANAVATI: We have seen very robust demand in OE and the aftermarket. As far as capacity, we are running to meet demand.

Our goal is to deliver the right tire to the right place at the right time. And we have been able to deliver that value proposition to our customers.

We did see some challenges, I would say, in some shipping lanes.

But I would say our supply chain team has been able to successfully navigate those challenges.

MTD June 2021

5/25/21 2:35 PM

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DSP Insight

‘Showcase who you are’

HOW TO LEVERAGE EVENTS TO ATTRACT NEW CUSTOMERS By

Jeff Morgan

A

ll of us are looking for ways to generate new business. There are two basic ways to accomplish this: do more with the customers that you have or increase the number of customers you serve.

While both are effective, one is much more limiting. The greatest gain comes in finding ways to bring in more customers.

There are a number of things that can impact this, such as staffing, productivity and hours of operation. While I can drone on and on about any of those, I want to spend some time on grabbing the attention of — and drawing in — new customers.

Like most tire dealers, you probably advertise in multiple forms. Do you remember the old adage, “Doing the same thing and expecting different results is the definition of insanity?”

I am not suggesting that your current methods are ineffective. What I am suggesting is that if you really want to maximize opportunities to draw in new business, you need to consider and try some different approaches. Think outside the proverbial box.

I want to share some ideas that have worked well that you might consider, if you are not already actively practicing them.

The first is event partnerships. I am referring to more than being the sponsor of a hole during a golf tournament or paying to have a banner put up at a local high school athletic field. I mean being a true partner in an event of some type.

Getting involved with various car groups is a great example. Perhaps you can leverage your location to host a car show on a Sunday afternoon. You can provide prizes for the winners, offer special discounts to contestants and offer door prizes for attendees. You can put products on display and have people there to answer questions or create sales quotes, if needed.

Events like this can produce a lot of new customer leads. The first leads come from car club members. These people are

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Getting involved with car clubs is a great way to showcase who you are. After interacting with your people at events, club members just might be inclined to bring their vehicles to you.

typically a loyal bunch. When they see you investing in them, they like to reciprocate.

You already know that they are passionate about their show cars, but they likely have other vehicles at home that need tires and service work, as well.

You may even become the provider of choice for all of the club members’ vehicles.

I know a dealer who got involved with a Toyota Land Cruiser club and now his location is seeing several of these vehicles each week.

Keep in mind that the people who come to these events may not even know who you are or where your dealership is located.

They could be coming from outside your normal attraction area or they could live around the corner. Often we just assume that everyone around us knows we are there and what we do. You might be surprised at how often this is not the case.

Getting involved with car clubs is a great way to showcase who you are. After interacting with your people at events, club members just might be inclined to bring their other vehicles to your store.

However, events do not always need to be automotive in nature. In fact, you might even find more success with community events.

I know another tire dealer who partners with his community to sponsor a used car seat recycling program.

People bring used car seats to his location, where they are dismantled by employees and materials are sent out for recycling.

This brings people into his location who may not have visited before. And it provides an opportunity to impress customers when they come in.

Perhaps you can do the same and even offer a discount for a basic service as a reward for donations. This can get that car in your bay and give you a chance to “wow” a new customer with exceptional service.

Participating in other community events can help garner attention. Consider park clean-up campaigns. You and your employees can go to a local park to pick up trash, fix some playground equipment, etc.

In addition to creating goodwill, this can provide you with some great photos to post on social media.

Many dealers use social media to share human interest stories, as well.

You can discuss interesting tidbits about your employees — with their consent, of course — as well as share positive outcomes to challenging problems or just provide fun information that will get people engaged.

The goal is to get people to see your business as more than just a place to buy tires and service. They will begin to see you as a member of the community who is just like them.

MTD June 2021

6/1/21 9:33 AM

We all know that many people are fearful of getting their cars worked on. However, if they form an opinion of you that is positive, they will be much more likely to give you a chance. Social media can help.

Another great way to get new customers is for you to go to them. I am talking business-to-business here. There are so many businesses around you that have vehicles.

These potential customers do not need to have big fleets. However, treat them right and their employees will start coming to you, too.

A simple way to prospect is to simply sit at a major intersection near your location.

Spend 30 minutes with a pen and paper.

When you see a vehicle with a logo, name and/or phone number on it, write it down.

Plumbers, florists, construction companies — these are businesses that are already active in your area. Go back and check to see if they are currently doing business with you. If not, they are a prospect.

Physically visit some of these businesses, if they are nearby. Go in and ask for whoever is in charge of maintaining their vehicles.

Introduce yourself and ask who they are working with now. Do not bad-mouth whoever that company is. Simply say that you would like a chance to earn this potential customer’s business.

Encourage them to call you if their current provider cannot take care of a need they have. Perhaps even offer a free oil change to entice them to come in and experience your business for themselves.

The key here is to stay in contact. After the first visit, the person with whom you talked may not remember you.

Make detailed notes about who you talked with, who they work with and maybe even the vehicles they use.

Stop back in from time to time and say hello. Ask how things are going with the tire and service supplier they are using.

Maybe ask a little bit more about what types of services they use this company for. Is it just tires? Preventive vehicle maintenance?

All vehicle repairs? Reiterate that you really want a chance to earn their business and remind them to reach out if you can ever be of service.

Sooner or later, an issue will arise. They will remember you and give you a chance.

When that happens, move heaven and earth to take care of their needs. Impress them with your service and invite them back.

While this business-to-business method w w w . M o d e r n T i r e D e a l e r. c o m

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takes time to build, it will help keep your bays busy. The bottom line is to be willing to try a different approach.

Get yourself and your business in front of potential new customers, instead of hoping that they will find you. Consumers have plenty of choices. Unless they are looking for something only you have or need a new place in general, they will not necessarily

come hunting for you. However, if you present your business to these people in a positive way, they may turn to you in a time of need. ■ Tire industry veteran Jeff Morgan is the executive director of Dealer Strategic Planning, the DSP Group. He can be reached at jeff.morgan@20dsp.com or (651) 846-9871. For more information, see www.20DSP.com.

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Business Insight

The ‘wage wars’ are here HOW TO ARM YOURSELF FOR SUCCESS Dennis McCarron

A

few years ago, I wrote about an impending “wage war.” The primary driver at the time was a shrinking talent pool at the beginning of the pipeline and an aging skilled workforce. (At the time, the average age of a master certified technician was 55.)

When you combine those two factors, it creates a wage imbalance. Employees at the top of skilled positions know they can command virtually any price if they can fix virtually any car. And employees at the entrance of the job market also know that reliable help is scarce and support for a high minimum wage is strong. Now add to the mix three items:

Let’s look at a few things you should be doing to assemble the best team:

Retain. This is the best tactic to use when you already have a really good team. Have you given out raises because of COVID-19?

Have you retooled your bonus programs to reflect the times? I’m sure you’ve adjusted your hours. Are you adjusting back? If so, how will you explain this to your employees?

All of these questions are critical in retaining your employees. Right now, there are many tire dealerships that are dealing with a surge in demand and not enough employees. That puts two pressures on you: higher wages and better working conditions.

Decade after decade, employment polls show that money isn’t everything. Employees want good bosses, good co-workers and safe 1. A surge in demand; 2. Government-run unemployment working conditions. Money is a strong initial rules that can potentially pay more for pull, but if you want long-term employees, people to stay home than you can pay them you must meet wage demands and maintain to work, and; proper working environments.

3. A restaurant industry that lost nearly all Recruit. Sorry, traditional recruiting is of its workers, who have had a year to choose not going to cut it. Large online employment employment in new industries. Restaurants seeker sites are not your go-to solution in a are desperate to reopen to full capacity and crunch. Recruiting in a wage war is a matter of customers are desperate to spend money relationships. Talk to your current employees, there. Restaurant owners will pull from put the word out that you are hiring and ask anywhere to fill entry-level positions. for references.

However, do not under any circumThere isn’t a “first shot” or dot on a stances lower your standards. As a matter timeline to indicate when a wage war is of fact, you can use this opportunity to going to happen. It’s raise your standards. more like a confluence Football coach of events. You may not Nick Saban once said, There are high achievers know when a wage “Mediocre people in this industry, but some don’t like high achievwar will start, but you will know when ers and high achievers of them may currently you’re in one. And don’t like mediocre work somewhere else. you should definitely people.” know that you are in There are high one. And it’s not just technicians. It’s talented achievers in this industry, but some of sales and management people, as well. These them may currently work somewhere else. workers know their value. You should, too.

I’m not an advocate of stealing employees.

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Employees at the top of skilled positions know they can command virtually any price for their services.

But If I have the best team, the best store, the best equipment, the best benefits and the best management, I don’t have to recruit a whole lot. Usually people are looking to get on board.

Invest. It’s time to make your store shine.

Improvements don’t have to be expensive, but your store has to be clean and sharp.

Fresh paint, a waxed floor and an updated waiting area? That’s a start. How about the employee bathroom or changing area?

These things matter always, but especially in an ultra-competitive environment. No high achiever wants to work at a dealership where the outside lights and signage don’t all work or the glass in the door is cracked.

You might be asking yourself, “How am I going to pay for all this?” That’s a legitimate question.

But how are you going to pay for anything when your good talent leaves? The good ones always go first because they have a strong sense of self worth.

Please don’t delay. Get your pricing sorted out, give raises to those who deserve it, clean up your place and you’ll be fine.

Just start taking action on the things you can control. ■ 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.

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MTD June 2021

6/1/21 9:35 AM

**BINDING EDGE**BINDING EDGE**BINDING EDGE**BINDING EDGE**BINDING EDGE**BINDING EDGE**BINDING EDGE**BINDING EDGE**BINDING EDGE**BINDING EDGE**BINDING EDGE**BINDING EDGE**

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5/28/2021 12:53:27 PM

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Mergers and Acquisitions

Integrating retail into a commercial tire business HOW TO GRAB THE LOW-HANGING FRUIT By

Michael McGregor

A

s commercial tire dealers look to enhance their business values into the same stratosphere as retail tire dealers, some are looking at integrating the more profitable elements of retail business into their commercial operations.

From a customer retention and profit perspective, this makes perfect sense. The more touch points you have with a customer, the more value you add and the greater customer loyalty you’ll enjoy.

The challenge is doing this without taking your eye off your core commercial business. After all, it’s tough enough being good at one business, let alone two or three.

Many commercial tire dealers offering heavy or medium truck and OTR/ag tires do some sort of retail business already.

If you don’t, but want to, think about taking an incremental, step-by-step approach until you are satisfied with what you have.

Don’t fundamentally change who you are and what you do. And go after the low-hanging fruit.

In terms of what to go after for retail-like business, I’d take it in this order: 1. Passenger and light truck vehicles that are part of your existing customer’s fleet.

You already have a relationship with the company and the work is already billed monthly; 2. Personal vehicles owned by drivers of a customer’s commercial vehicles. Let drivers know that they can bring their family’s vehicles in for tires and service and that you’ll give them a discount; 3. Personal vehicles owned by all other employees of your customer. Spin it as an employee benefit and that all employees will get a special discount, and; 4. Other business services companies in your trade area that have fleets of vehicles, like light construction, plumbing, glass,

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delivery or landscaping operations. Offer special pricing and monthly billing.

business. Maybe print up discount cards for your salespeople to hand to customers when they see them. Don’t advertise retail Now for the “how-to.” Think about what at first, other than on your website. And you do already and see how you can integrate please, no loss leaders. Promote quality. retail into that. Focus on these areas: People. A friend of mine who used to run groups of Tire Centers LLC locations Products and services. You’ll likely start always integrated retail into his commercial with tires, tire-related services, brakes, operations. He’d take the least productive alignments and undercar services. It goes commercial salesperson and find a better replacement, put him behind the counter without saying that you’ll need the proper equipment and qualified technicians who can and place him in charge. His thinking do those services. Think twice about getting was that the guy understood commerinto drivability because of the higher cost and cial tires and the importance of treating potential downside. everyone well because one never knew who Price. You can’t be priced higher than that “retail” customer Don’t fundamentally where tire and service might truly be. retailers in your area Process. This same change who you are and are. That administrafriend got everyone’s what you do. tive assistant to the attention in the store CEO needs to feel that when launching retail she got a great deal, too. (You’ll hear about it by having a full employee meeting after if she feels otherwise.) Start with 10% off the hours. You’ll have to come up with a process normal retail price in your area and see how that is more like the traditional retail process that goes. Make sure you can take Visa and so customers can get in, get serviced and Mastercard and that you have a cash drawer. get cashed out the same day.

Place. Make your facility as conducive to retail business as you can. Hopefully you can My experienced commercial tire buddy dedicate a couple of service bays to this new doesn’t call this business “retail,” by the way. business. You’ll need a front counter where He calls it “commercial light mechanical customers can be greeted, clean bathrooms service” and he feels that this is better than and a customer waiting area. Do the best “regular retail” because the customers are that you can to make the commercial facility generally nicer. as pretty as a retail facility. Regarding store Both parties realize the business relationhours, don’t change them. The idea is to ship is important. These customers trust integrate this into your existing business. If you already and will give you the benefit of the doubt. ■ you’re open five days a week and are closed Saturday and Sunday, stay that way. Altering this can have a significant impact on your Michael McGregor is a partner at Focus Investment Banking LLC (focusbankers.com/tire-and-service) economics and employee morale. and advises and assists multi-location tire dealers Promotion. This new business can be on mergers and acquisitions in the automotive built with grassroots marketing. Your salesaftermarket. For more information, contact him people should be happy to get the word out, at michael.mcgregor@focusbankers.com. especially if they are commissioned on the MTD June 2021

6/1/21 9:36 AM

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TPMS

Lexus-ES Series — 2007-21

A

tire pressure monitor valve sub-assembly equipped with a tire pressure sensor and a transmitter is installed in each tire and wheel assembly. The sensor measures the tire pressure and the measured value and transmitter ID are transmitted to the tire pressure monitor antenna on the body as radio waves.

These radio waves are then sent to the tire pressure monitor’s electronic control unit (ECU) from the tire pressure monitor receiver. If the transmitter ID has already been registered, the ECU compares the measured air pressure value with the standard value. When the value is less than the standard value registered in the tire pressure monitor ECU, the warning light on the instrument cluster comes on.

CAUTION: The warning system may not activate immediately if bursts or sudden air leakage should occur.

The tire pressure warning reset switch is used to address the differences in the air pressure settings by the type of tires or the differences in pressure between the front and rear tires. This switch is used to initialize the warning system after certain repair procedures.

The tire pressure warning selector switch allows two sets of ID codes to be registered. The code of the tires originally installed on the vehicle is registered on the switch at “MAIN.” When a new set of tires is installed, they can be registered in the “2nd” position. Once registered, the setting position can be changed each time tires and wheels are replaced and re-registration is not required.

NOTE: When the tires whose ID code is registered at “MAIN” are used, the system does not work properly with the selector switch set at “2nd.”

If the tires whose ID code is registered at “2nd” are stored nearby, the system will detect their tire pressure and vice versa.

NOTE: This system has transmitters with different bending angles at the tire pressure sensor for aluminum wheels.

They are not interchangeable with other wheels.

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Under the following conditions, the system may not function properly: • The areas, facilities or devices that use similar radio wave frequencies are located in the vicinity of the vehicle; • A radio device of similar frequency is used in or near the vehicle; • A lot of snow or ice is stuck to the vehicle, especially the wheels and around the wheel houses; • The battery of the sensor has been depleted; • A tire without tire pressure sensor is used; • Snow tires or tire chains are used; • The spare tire is in use, and; • If wheels other than specified ones are used, the system may not function properly because the radio waves are differently transmitted from the tire pressure sensor; Depending on the tire type, the system may not function properly even though the specified wheels are used. Although tires with tire pressure sensors are used, the tire pressure monitoring system (TPMS) selector switch is set to the other tire setting.

TIRE PRESSURE MONITOR WARNING INDICATORS

NOTE: The tire pressure warning light may turn on due to natural causes, such as natural air leaks or tire pressure changes caused by temperature. In this case, adjusting the tire pressure will turn off the warning light.

When the tire pressure warning light and message do not go off or when they come on during driving, check tire pressure and adjust as necessary. Warning indicators should turn off a few minutes after air is put into a deflated tire. If the warning indicators are still on even though the tire pressure is correctly adjusted, the tire could be punctured. Repair as necessary.

If the tire pressure warning indicators come on within several hours after adjusting the tire pressure, the tire may have a slow air leak. If the tire pressure warning light is blinking even after adjusting the tire pressure, selection of the tire pres-

sure selector switch “MAIN”/”2nd” may be incorrect.

If the warning light is still on or blinking, there is a malfunction in the TPMS. See appropriate manufacturer service information.

TPMS RESET PROCEDURES

NOTE: The system will need to be initialized when tires are rotated; tires are replaced with tires of different pressures; and the tire pressure sensor and/or tire pressure monitor ECU are replaced. See INITIALIZING TIRE PRESSURE MONITOR SYSTEM. When a tire pressure sensor and/or tire pressure monitor ECU are replaced, the sensor ID must be memorized by the tire pressure monitor ECU prior to system initialization. See TIRE PRESSURE SENSOR REGISTRATION. NOTE: Initialization is not required if re-inflating tires to the specified tire pressure.

INITIALIZING TIRE PRESSURE MONITOR SYSTEM

CAUTION: Do not push the reset switch without adjusting the tire inflation pressure of all four tires. Otherwise, the low tire pressure warning light may not come on even if the tire pressure is low or it may come on when the tire inflation pressure is actually normal. If you push the reset switch while the vehicle is moving, initialization is not performed.

NOTE: Perform initialization after the transmitter ID registration procedure, if registration is required.

NOTE: When initializing the system, the current tire condition is stored as a standard.

During initialization, the tire pressure sensor measures the inflation pressure of the tires and registers the signals that are transmitted into the tire pressure monitor’s ECU at a frequency of one per minute.

The initialization process is completed when the signals from the four tires have been received. The initialization process is canceled if the engine switch is turned off during initialization.

To initialize again, the tire pressure warning reset switch must be pressed again.

MTD June 2021

6/1/21 9:37 AM

TPMS For this reason, once the tire pressure warning reset switch has been pressed, turning the engine off is not recommended for a minimum of 20 minutes.

NOTE: Perform the tire pressure adjustment after the vehicle has sufficiently cooled down. If the vehicle is not sufficiently cooled down, increase the air pressure by three to four psi, in addition to the specified value.

1. Set the tire pressure of all wheels to the pressure specified on the tire and loading information label; 2. With the vehicle stopped and parking brake applied, turn the engine switch on. NOTE: Initialization is usually completed in two to three minutes.

When the initialization is completed incorrectly, Diagnostic Trouble Code (DTC) 2177/77 is set after driving the vehicle for about 20 minutes or more; 3. Press and hold the tire pressure warning reset switch, which may be located to the right or left under the steering wheel, until the tire pressure warning light blinks three times at one-second intervals, and; 4. Confirm that the correct tire pressure data of all tires is displayed on the Techstream screen.

NOTE: Initialization can be terminated by connecting terminals 13 (TC) and 4 (CG) of the DLC3.

initialization has been completed; 4. Perform the transmitter ID registration by entering the following menus: Chassis/Tire Pressure Monitor/Utility /ID Registration; 5. Using the TPMS Selector Switch, if equipped, select the “MAIN” registration mode or “2nd”, if registering in 2nd mode;

Say ‘yes’ to OEM TPMS expertise.

TIRE PRESSURE SENSOR REGISTRATION

NOTE: If the tire pressure sensor and/or tire pressure monitor ECU are replaced, the transmitter ID needs to be registered in the tire pressure monitor ECU prior to system initialization. To perform this procedure, the Toyota intelligent tester must be used.

It is not necessary to register the sensor IDs when only tire rotation is performed.

REDI-Sensor is built by one of the world’s leading suppliers of OEM TPMS systems – Continental.

REDI-Sensor – A Trademark of the Continental Corporation

Register Transmitter ID 1. Set the tire pressure of all wheels to the pressure specified on the tire and loading information label; 2. Connect the Techstream to DLC3, located under the steering column; 3. With the vehicle stopped and the parking brake applied, turn the ignition switch ON and turn Techstream ON. NOTE: If the system is in the initialization mode, it is unable to perform registration. Therefore, restart the registration after terminating the initialization or confirming that the

6. Input the transmitter IDs (ID1 to ID4), using the Techstream, and transmit it to the tire pressure monitor ECU; 7. The “ID Registration is complete” will be displayed on the Techstream display.

NOTE: The tire pressure warning light will continue to blink until the tire pressure warning ECU and receiver receives the input ID signals.

That’s why REDI-Sensor relearns faster and easier.

Plus, there’s never any programming required with REDI-Sensor. It’s ready right out of the box.

Get the full story: REDI-Sensor.com

w w w . M o d e r n T i r e D e a l e r. c o mCO6941 ModernTireDealer_REDI-Sensor Say Yes to OEM TPMS_HalfIsl_6-21_v1.indd

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1

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TPMS AUTOMOTIVE INTELLIGENCE

TPMS KITS Ask Your Autel Distributor for Details

TS508/TS508WF PLUS

Confirmation of Transmitter ID Registration: 1. Connect the Techstream to DLC3; 2. Turn ignition ON and turn Techstream ON; 3. Enter the following menus: Chassis/ Tire Pressure Monitor/Data List and then check the Data List for correct tire pressures; 4. If normal pressure values are displayed, the IDs have been registered correctly.

NOTE: It may take about two or three minutes until the values are displayed. If the values are not displayed after a few minutes, perform troubleshooting according to the inspection procedure for DTCs C2121/21 to C2125/25 or C2131/31 to C2135/35.

NOTE: After all IDs are registered, DTC C2126/26 (for “MAIN” mode) or DTC C2127/27 (“2nd” mode) is set and the tire pressure warning light blinks for one minute and then comes on. Once the tire pressure warning ECU and receiver successfully receive radio waves from all the transmitters whose IDs are stored in the ECU and receiver, DTC C2126/26 or C2127/27 is deleted and the tire pressure warning light goes off.

If Equipped with A TPMS Selector Switch: Determining Installed Wheels Transmitter ID Status (“MAIN” or “2nd”) 1. Turn the ignition ON. NOTE: TPMS Selector Switch button operation; 2. Set the tire pressure warning selector switch to “MAIN” position; 3. Ensure the tire pressure of all wheels is set to the specified values; 4. Remove valve core and rapidly reduce the pressure of one tire; 5. Check for the following items. If both of them are true, the transmitter ID of the currently installed wheel is registered to “MAIN:” • •

COMPLETE

SOLUTION

TEL: (855) 288-3587 • USSUPPORT@AUTEL.COM AUTEL.COM • MAXITPMS.COM • MAXISYSADAS.COM

©2021 AUTEL U.S. INC., ALL RIGHTS RESERVED

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Tire pressure warning light comes on; When checked with the Techstream, the tire pressure data displayed on the screen has been changed for the deflated tire;

6. If either of the above conditions is not true, switch the tire pressure warning selector switch to “2nd”. Perform steps three through five again. If both conditions are now true, the transmitter ID of the currently installed wheel is registered to “2nd.”

DISMOUNTING/MOUNTING PROCEDURES

CAUTION: The tire should be dismounted from the wheel using the tire changer manufacturer’s instructions. Use the following information to avoid damage during the dismounting/mounting procedures.

NOTE: The system will need to be initialized when tires are rotated; tires are replaced with tires of different pressures; tire pressure sensor and/or tire pressure monitor ECU are replaced. When a tire pressure sensor and/or tire pressure monitor ECU are replaced, the sensor ID must be memorized (registered) by the tire pressure monitor ECU prior to system initialization. See RESET PROCEDURES.

TIRE PRESSURE SENSOR

CAUTION: Do not try to install a tire pressure sensor in a steel wheel or aftermarket wheel. Use only an original style factory wheels.

CAUTION: The use of tire sealants is strictly prohibited for vehicles equipped with TPMS. Tire sealants can clog tire pressure sensors.

NOTE: The average life of the grommet of the tire pressure sensor is approximately five years, at which time it must be replaced.

If the valve is leaking air, is less than five years old and there is no problem with grommets, retighten the valve nut to 35 inch-pounds.

NOTE: If the tire pressure valve subassembly is going to be replaced, make a note of the seven-digit number (transmitter ID) before installation.

Removal 1. When replacing a wheel or tire, tire pressure sensors must be set up in one of the following ways: • • •

Remove the sensor from the old wheel and install it to the new wheel; Keep the same wheel with tire pressure sensor and replace only the tire, or; Use a new wheel and sensor. The new sensor must be registered.

2. Remove the wheel, remove the valve core and cap and release air from the tire; 3. After ensuring that air is sufficiently released, remove the nut and washer used to fix the tire pressure sensor and drop the sensor inside the tire; MTD June 2021

6/1/21 9:41 AM

TPMS TORQUE SPECIFICATIONS Component

Ft.-lbs.

(N.m)

Wheel nut

100

(135)

Ft.-lbs.

(N.m)

13

(1.5)

Sensor-to-valve Torx screw

4. After dropping the tire pressure sensor into the tire, disengage the bead using the shoe of the tire remover.; 5. Remove the bead on the upper side in the usual operation; 6. Take out the sensor from the tire and remove the bead on the lower side as in usual operation; 7. Remove the inner grommet from the tire pressure sensor.

Installation 1. Insert the tire pressure monitor valve into the valve installation hole. Insert from the inside of the rim so that the print surface can be seen. Check that there is no visible deformation, damage or other abnormalities on the transmitter and that there is no foreign matter on the inner grommet and/or located around the rim hole. If installed in the reverse direction, the tire pressure monitor valve may be damaged or fail to transmit signals when running at high speed. If installing a new tire pressure monitor valve, write down the ID number before installation. It is necessary to register an ID in the ECU after installation.

2. Install the washer on the tire pressure monitor valve from the rim side and tighten the nut to 35 inch-pounds.

Check for the following: • •

•

There is no foreign matter on the washer and nut; If the tire pressure monitor valve was removed, there is no damage or cuts and there is no foreign matter — such as mud, dirt or sand — attached to the grommet. Replace the grommet with a new one if any of these defects are found; There is no oil, water or lubricant around the rim hole, tire pressure monitor valve, washer and nut. Failing to do so may result in improper installation.

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3. After the tire is inflated, the valve nut may be loose. Retighten the nut to the specified torque and then check for air leaks with soapy water.

CAUTION: If the sensor is positioned outside this area, it generates interference with the tire bead, causing possible damage to the sensor; 4. Set the wheel disc to the mounting machine and install the lower tire bead.

Position the main body of the sensor in the shaded area as shown in the illustration; 5. Making sure that the tire bead and tool do not interfere with the main body of the sensor and that the sensor is not clamped by the bead, install the upper bead; 6. When putting air into the tire, first install the tire pressure valve straight onto the stem of the tire pressure warning valve and transmitter; 7. Install the tire and wheel assembly; 8. When a new sensor is installed, the ID code will need to be registered;

IS THE ONLY

COMPLETE

9. For any other type of replacement, the sensor ID code will not need to be re-registered. If using the originally installed tires, put the selector switch at “MAIN.” If using tires purchased later, put the switch at “2nd;” 10. After completing the operation, remove the valve core to rapidly release the air in the tire. Ensure that the tire pressure warning light comes on. If the warning light does not come on, refer to appropriate manufacturer service information, and; 11. If there is an air leakage, tighten the nut to a force of 35 inch-pounds and push the valve core two times to remove any dirt attached to it. If air continues to leak, replace the grommet, washer and nut. ■ 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 Poway, Calif., Mitchell 1 has provided quality repair information solutions to the automotive industry since 1918. For more information, visit www.mitchell1.com. To read archived TPMS articles, visit www.moderntiredealer.com.

TPMS MANUFACTURER TO OFFER A

SOLUTION

OE QUALITY SENSORS

POWERFUL SCAN TOOLS

UPDATES POWERED BY

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ALUMINUM OR RUBBER VALVE STEMS AVAILABLE

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CONTACT YOUR AUTEL DISTRIBUTOR FOR MORE TPMS KIT OPTIONS Phone: (855) 288-3587 • USSUPPORT@AUTEL.COM AUTEL.COM • MAXITPMS.COM • MAXISYSADAS.COM

Follow Us @AutelTools

© 2021 Autel U.S. Inc., All Rights Reserved

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Products New General all-weather tire

Cooper rolls out Rugged Trek

The General brand has entered the all-weather tire market with the AltiMAX365, available in 52 sizes, ranging from 15 inches to 20 inches in rim diameter, all with 3-Peak Mountain Snowflake certification for severe winter service. The product targets drivers “who want a versatile tire providing bestin-class overall performance and optimal traction in deep snow compared to typical all-season tires,” say Continental Tire the Americas LLC officials.

CONTINENTAL TIRE THE AMERICAS LLC www.generaltire.com/tires

The new Cooper Discoverer Rugged Trek from Cooper Tire & Rubber Co. is an all-season tire designed for off-road and on-road performance. The tire features Cooper’s Whisper Grooves technology, which helps minimize noise at high speeds, plus the company’s Stable Trac technology for optimal stability and control.

The Discoverer Rugged Trek also is available in two unique upper sidewall designs, one on each side of the tire, for a customized look.

COOPER TIRE & RUBBER CO. www.us.coopertire.com

Pirelli adds to Scorpion line Pirelli Tire North America’s new Scorpion AS Plus 3 touring allseason tire targets crossovers, SUVs and pickup trucks. The tire comes with a 70,000-mile limited treadwear warranty and is available in 37 sizes, ranging from 17 inches to 22 inches. Key fitments include the Jeep Cherokee, Honda CR-V, Toyota Highlander, Ford F-150 and Kia Sorento. The Scorpion AS Plus 3 contains innovative compound materials, including highly functionalized polymers.

PIRELLI TIRE NORTH AMERICA www.pirelli.com

Michelin expands BFGoodrich line The new BFGoodrich Advantage Control from Michelin North America Inc. offers all-season traction and handling for passenger cars, crossovers and minivans.

Available in both the U.S. and Canada, the tire features Aqua-Flume Technology that when combined with its advanced all-season compounds, offers enhanced braking on wet roads. The tire also features a special groove system that is designed to evacuate water from its contact patch.

MICHELIN NORTH AMERICA INC. www.bfgoodrichtires.com

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Dill introduces Fast-N-Flator Dill has unveiled its 4501 Fast-N-Flator core remover and inflator, which allows for the removal of the valve core and tire inflation, all in one. The product, which is made in the United States, “removes the guesswork when setting tire pressure during inflation and saves time in high-production tire mounting facilities,” according to Dill officials. The Fast-N-Flator’s torque knob ensures the valve core is properly reinstalled every time, preventing errors and comebacks.

DILL AIR CONTROL PRODUCTS www.dillvalves.com

Hunter unveils new tire changer Hunter Engineering Co. is introducing the new Auto34R tire changer, designed to quickly and easily service the broadest range of assemblies, while also dramatically reducing the opportunity for wheel damage through operator error. The Auto34R’s speed and ease of use derive from its telescoping chassis that brings the wheel to the rollers and tool head. Direct rim tracking lowers the stress on beads during mount and demount cycles, saving operator time and reducing the risk of wheel damage.

HUNTER ENGINEERING CO. www.hunter.com MTD June 2021

6/1/21 9:42 AM

PEOPLE | PRODUCTS | VEHICLES | IDEAS NOVEMBER 2–5, 2021 • LAS VEGAS CONVENTION CENTER • LAS VEGAS, NEVADA

SEMASHOW.COM/REGISTER

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4/23/21 1:04 PM 6/1/2021 10:50:05 AM

Ad Index WHEN YOU CONTACT ONE OF OUR ADVERTISERS PLEASE BE SURE TO MENTION YOU SAW THEIR AD IN MODERN TIRE DEALER ADVERTISER

PAGE

WEBSITE

American Omni Trading

13, 51

www.thunderertireusa.com

Apollo Vredestein Tires Inc.

35

www.apollotrucktires.com

AUTEL

29, 54, 55

www.autel.com

BKT USA Inc.

11

www.bkt-tires.com

Brake Parts Inc., Raybestos

9

www.raybestos.com

Continental Corporation

53

www.continentaltire.com

Dannmar, A division of BendPak

27

www.dannmar.com

Falken Tires

49

www.falkentire.com

Firestone Tire

21

www.firestonetire.com

Fury Tires

43

www.furytires.com

Hunter Engineering Company

41

www.hunter.com

K & M Tire Inc.

25

www.kmtire.com

Ken-Tool

35

www.kentool.com

Kenda Tires USA

IBC

www.kendatractionrewards.com

Linglong Americas Inc.

7

www.linglongtire.com

Maxxis Tires

19

www.maxxis.com

Mr. Tire/Big 3 Tire

37

www.mrtirebig3tirectd.com

Nexen Tire America Inc.

IFC

www.nexentireusa.com

Nitto Tire U.S.A. Inc.

OBC

www.nittotire.com

Pirelli Tire LLC

5

www.us.pirelli.com

Prinx Tire North America Inc.

47

www.prinxtire.com

SEMA Show

57

www.SEMAshow.com

Sentury Tire

17

www.senturytireusa.com

Yokohama Off-Highway Tires America Inc.

15

www.yokohama-oht.com

Yokohama Tire

39

www.yokohamatire.com

ZC Rubber America Inc.

39

www.arisuntires.com

58

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MTD June 2021

6/1/21 9:50 AM

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