Modern Tire Dealer - May 2017 by EndeavorBusinessMedia-VehicleRepairGroup

THE INDUSTRY’S LEADING PUBLICATION

100 YEARS OF DEDICATION MATTERS. COMMITTED TO QUALITY, LONGEVITY AND PERFORMANCE. With more than a century in the tire industry, Cooper® knows tires. From making tires with great performance in wet weather to tires with the quality to go the distance, we’ve proven time and time again to be experts in our ﬁeld. Which is why you know you can count on us.

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count on cooper.® An American Company Since 1914. coopertire.com

*80,000 mile tread wear protection warranty is available only for Cooper® CS5 Grand TouringTM T-rated tires purchased new and which are used on the vehicle on which they were originally installed. Other terms and conditions apply. **Based on the results for Cooper® CS5 Grand TouringTM 205/55R16 T-rated tires and Cooper® CS5 Ultra TouringTM 225/50R17 V-rated tires in comparative wet braking testing against four select competitor tires.

THE INDUSTRY’S LEADING PUBLICATION

CATERING TO CUV CUSTOMERS Tire sales will ‘match or surpass’ passenger tires within 10 years

Business insight: What will that expense really cost you?

Prepare your shop now for start-stop battery systems

May 2017 | Vol. 98, No. 5 | $10 | A Bobit Publication | www.moderntiredealer.com

Counter intelligence: Focus on feelings supported by facts

Features 28 The decade of the CUV tire There’s still room for more ‘significant growth’ by 2020

46 Suspension inspection Tips on servicing less-common air suspension systems

48 Prepare now for start-stop systems From 2% to 40% in 2020!

54 LT tire repair TRMG revises its recommendations

The Industry’s Leading Publication May 2017, Volume 98, Number 5

Departments 4 Editorial Is there a catch to the pitch? Tire companies hope baseball advertising pays off

6 moderntiredealer.com News and navigation tools for MTD’s website

8 News/views The stark difference in an 8% price hike: Two tire makers report weak demand in North America

18 On the Rise Retailers are struggling, but young tire dealers have hope

25 Numbers that count Statistics from an industry in constant motion

26 Your marketplace Cost pressures likely will continue to build

56 Counter intelligence Facts, feelings and focus: Focus on feelings supported by facts

58 European notebook Bridgestone in Europe! Building on continued success

62 Business insight Using return on sales measurement to guide purchases

Focus on dealers/industry 64 Apollo opens tire plant in Hungary, looks for growth in the U.S. 66 Show organizers to ‘rethink’ the NATRE 68 Online marketing strategy: Continental has one goal: to drive consumers to its dealers 72 Image conscious: North Carolina tire dealers discuss how to counter stereotypes 74 Big O Tires grows sales and adds stores

75 TPMS Acura ILX, MDX, RDX, RLX, TL, TLX, TSX, ZDX

88 Your turn How does tire makers’ sports marketing influence dealers’ sales?

80 Products 84 Ad index 86 Classified

On the cover: Thank you to customer Jill Sabino, technician James Pyles and Ziegler Tire & Supply Co. in North Canton, Ohio, for their help bringing our May cover to life. www.moderntiredealer.com

Modern Tire Dealer is a proud member of: TRIB

TIRE RETREAD & REPAIR INFORMATION BUREAU

Member An Industry Association

Editorial

Is there a catch to the pitch? Tire companies hope baseball advertising pays off

hich tire company is associated with says the team sponsorship and branding continue Major League Baseball? Is it Falken to build awareness for Yokohama products among Tire Corp.? Hankook Tire America Angels fans. Corp.? Yokohama Tire Corp.? Toyo Tire U.S.A. Toyo and Kenda also follow the team philosophy Corp.? Kenda USA? Nexen Tire America Inc.? of sports marketing. Toyo is the “Official Tire” of Try all of them. Each of those tire manufacturthe Boston Red Sox, which, according to Toyo, ers sponsors at least one baseball team. Falken is the team with the largest geographic market however, is the official tire of Major League in the major leagues. Baseball (MLB). Kenda is the “Official Partner” of the Cleveland All the tire companies believe they get a lot for By Bob Ulrich Indians through the 2017 season. As part of the the money they spend. For example, thanks to its agreement, Kenda receives television-visible MLB sponsorship, Falken says it recorded an estimated 3 branded home plate signage as well as baseline signage. billion in impressions in 2016, its first full year as a sponsor. Hankook also has full-season home plate signage at According to the results of Cleveland’s Progressive the most recent SportsBusiField this year. But it is not ness Journal survey of MLB uncommon for more than sponsor loyalty, Falken regone tire company to partner istered close to an 18% aware with a baseball team. ness level among fans last Like Yokohama, Nexen year. SportsBusiness Journal sponsors the Los Angeles estimates the company spent Angels of Anaheim. Unabout $2.3 million during like Yokohama, its outside MLB-related telecasts. signage is limited to the staHankook has, appropridium’s LED feature. Inside, ately, a team approach to the Nexen name covers the sports marketing. The company has home plate signage press room backdrop. agreements with 26 major league teams (and outfield It makes sense that sports marketing is a good way to wall signage deals with five of those teams). As a result, it spend money. In-stadium signage takes advantage of a captive audience, and the repetition of a company’s name within eyesight and earshot of a fan can only increase brand awareness (note that I did not refer to this as brainwashing). Also remember, fan is short for fanatic. However, it is not yet easy to quantify the benefits of sports marketing. That is true even before considering the benefit to you, the tire dealer who sells the sponsor’s products. Impressions are one thing. Actual purchases are another. As tracking becomes more sophisticated and we find out the real value of sports marketing, we may have more participation. Or less, depending on the bottom line. Keep this in mind: that recent SportsBusiness Journal survey ranks the Goodyear brand’s awareness level one percentage point ahead of Falken’s. Both Kenda USA and Hankook Tire America have paid for Goodyear Tire & Rubber Co. is not a sponsor of MLB. signage behind home plate at Cleveland’s Progessive Field. SportsBusiness Journal says Goodyear’s only MLB activaclaims its brand awareness has tripled. tion occurs when it provides aerial coverage of a game For the eighth consecutive year, Yokohama is partnering from one of its blimps. with the Los Angeles Angels of Anaheim in the American And it gets paid to do that. ■ League. Yokohama’s sponsorship includes its corporate logo in the highly visible position of left centerfield. If you have any questions or comments, please email me Alan Holtschneider, Yokohama’s director of marketing, at bob.ulrich@bobit.com.

It is not yet easy to quantify the benefits of sports marketing.

MTD May 2017

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Big money makes big news

Home office 3515 Massillon Rd., Suite 350 Uniontown, OH 44685 (330) 899-2200, fax (330) 899-2209 Website: www.moderntiredealer.com

Big investments were big news last month on our website, wwwmoderntiredealer.com. Items which received the most hits involved tire price increases, investments in new plants and dealership purchases and expansions. Here are the top 10.

Publisher Greg Smith, ext. 2212 Greg.Smith@bobit.com

Editorial

1. Goodyear to implement another price increase 2. Apollo opens tire plant, its 6th, in Budapest, Hungary 3. USW appeals the decision not to impose tariffs on Chinese truck tires 4. Raw material costs hit Cooper Tire hard in the 1Q 5. Telle Tire acquires another St. Louis tire dealer 6. Hankook adds to corporate strategy team at U.S. headquarters 7. Big O Tires continues to grow sales and stores 8. Jensen Tire investing $4 million in new corporate headquarters 9. Price hike boosts Michelin’s 1Q sales 10. TBC marches forward with expansion of NTB Tire in 6 states

Editor: Robert J. Ulrich, ext. 2211 Bob.Ulrich@bobit.com Managing Editor: Lori L. Mavrigian, ext. 2216 Lori.Mavrigian@bobit.com Senior Editor & Digital Projects Editor: Joy Kopcha, ext. 2215 Joy.Kopcha@bobit.com Senior Editor: Ann Neal, ext. 2218 Ann.Neal@bobit.com

Production Art Director: Neal Weingart, ext. 2214 Neal.Weingart@bobit.com Production Manager: Karen Runion, ext. 2210 Karen.Runion@bobit.com

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South and Texas: Greg Smith Greg.Smith@bobit.com (330) 899-2200, ext. 2212 Midwest: Bob Marinez Bob.Marinez@bobit.com (330) 899-2200, ext. 2217 West Coast: Marianne Dyal /The Dyal Company Marianne.Dyal@bobit.com (760) 451-9216 Automotive Aftermarket: Dan Thornton djtinc@gmail.com (734) 676-9135, mobile (313) 410-0945 Classified Sales: Bob Marinez Bob.Marinez@bobit.com (330) 899-2200, ext. 2217 Reprint Sales: Karen Runion Karen.Runion@bobit.com (330) 899-2200, ext. 2210

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MODERN TIRE DEALER (ISSN 00268496) (USPS #369-170) is published monthly by Bobit Business Media, 3520 Challenger St., Torrance, California 90503-1640. Periodicals postage paid at Torrance, CA 90503-9998 and additional mailing offices. POSTMASTER: Send address changes to MODERN TIRE DEALER, P.O. Box 3312, Northbrook, IL 60065-3312. Please allow 6 to 8 weeks for address changes to take effect. Subscriptions in the U.S. and its possessions, $65; Canadian, $99; Int’l surface mail, $99; Int’l airmail, $198. Single copies, $10, except the January Facts Issue, $30. Address all subscription correspondence to MODERN TIRE DEALER, P.O. Box 3312, Northbrook, IL 60065-3312. Please allow 6 to 8 weeks to receive your first issue. Please address Editorial and Advertising correspondence to MODERN TIRE DEALER, 3515 Massillon Road, Suite 350, Uniontown, OH 44685-6217. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. For your information: We sometimes make our subscriber information (i.e. fax, e-mail or mailing address) available to carefully screened organizations whose products and services may be of interest to you. If you prefer not to have your information made available, please write MODERN TIRE DEALER, P.O. Box 3312, Northbrook, IL 60065-3312.

MTD May 2017

News/views

The stark differences in an 8% price hike Two tire makers report weak demand in North America Tire makers started the year announcing price increases, most of them around the 8% mark. But initial earnings reports from the first three months of 2017 show those price hikes didn’t create a common path. First, a bit of a review: Goodyear Tire & Rubber Co. was the first to announce an increase, on Jan. 6, and Cooper Tire & Rubber Co. followed 10 days later. Four more companies followed that same month, including Michelin North America Inc. on Jan. 31. More announcements came in February and early March, and Goodyear has since announced a second increase, effective May 1. Goodyear and Cooper both set Feb. 1 as the target dates for those initial hikes, though Cooper ultimately imposed its increase on March 1. By the end of March at Goodyear, overall tire units were down 4%, with both original equipment and replacement volumes lower globally, 8% and 2% respectively. Gains in Brazil weren’t enough to offset weaker consumer replacement volumes in the U.S., which were affected in part by warm weather trends in the Northeast and Midwest. And domestic OE business was down as well, albeit against a tough comparable in 2016 when OE shipments were up 11%. Goodyear Chairman, CEO and President Rich Kramer said he expects “softness” in U.S. OE production to continue into the second half of the year. “We believe timing of our price increases, which came relatively early in the quarter, had a negative effect on our volume,” Kramer said. Industry analyst and Modern Tire Dealer columnist Nick Mitchell agreed that Goodyear being the first to impose a price increase, “drove the soft numbers in the U.S.” “I can’t recall a time where it was more critical for us to have a disciplined approach and commitment to the execution of our strategy, and we will need to do more of the same in the second quarter,” Kramer said. At Cooper, tire volumes increased 3% overall, and that’s despite an 11.3% drop in light vehicle tire shipments in the U.S. Comparatively, Cooper said Rubber Manufacturers Association (RMA) members reported light vehicle tire shipments were up 1.4% in the U.S. over the same period.

Cooper attributed some of its drop-off in sales in North America to “the competitive pricing and promotions environment in which companies adjusted their prices to address rising raw material costs, as well as weaker industry sell-out volumes.” Cooper CEO and President Brad Hughes said even though other companies indicated their price hikes were effective March 1, they also offered protected orders — meaning buyers could purchase tires in March without the pressure of the higher price. He also thought promotion activity among competitors was “a little heavier” than what might be normal for the period. Both Goodyear and Cooper said they scaled back production during the first quarter due to less demand in North America. The Michelin Groupe, however, reported higher sales and volumes for the same period. The difference? Michelin didn’t impose its price hike until April 1. The timing of price increases has proven a key factor. When Michelin announced its price increase, it said the “up to 8%” increase would apply throughout North America to all brands of passenger, heavy truck, earthmover, industrial, agricultural and twowheel segments. (It announced similar increases worldwide, with South America on the low side, with an increase of up to 3%.) But what Michelin didn’t immediately say was how quickly it would roll out the price increase. We now know the effective date was April 1. That gave buyers all of February and March to stock up, and Michelin’s financials show that’s exactly what happened. Net sales for Michelin Groupe were up 9.9% in the first quarter, and the company said volumes increased 7.3% compared to the same period a year ago. Some of the increase was due to “the sustained rebound in mining tire sales,” but pre-buying ahead of the price hike was substantial. Michelin divides its tire sales into three divisions — passenger and light truck sales; truck tires; and specialty tires, which includes earthmover and farm tires. All three divisions reported significant sales increases. The passenger/light truck and specialty divisions were up double digits compared to the first quarter of 2016. — Joy Kopcha

The timing of price increases has proven a key factor.

MTD May 2017

News/views

bites

Bridgestone renovates center Bridgestone Americas Inc. held a ceremony to mark the completed renovation of its data center in Akron, Ohio. The two-year, $17.3 million project centralized five data systems locations. Centric Parts is honored Centric Parts has received a 2016 vendor of the year award from Levine Auto & Truck Parts LLC of Danbury, Conn. Maxam offers online ordering Danvers, Mass.-based Maxam Tire North America Inc. is launching an e-commerce platform that enables customers to place warehouse orders for its specialty tire products. Bosch updates OTC software Bosch Automotive Service Solutions has released Bravo 2.9, the latest update to its diagnostics software for the OTC Encore scan tool. RNR adds digital resources The RNR Tire Express & Custom Wheels (RNR) franchise has added three digital platforms designed to increase lead generation, store traffic and quote assessments for franchise owners. BFGoodrich offers grants Michelin North America Inc. is accepting nominations for the BFGoodrich Outstanding Trails program from April 17 to July 31, 2017. Grants will be awarded to four off-road clubs in North America. Continental adds R&D center Continental AG is adding a research and development center in Silicon Valley that will focus on sustainable mobility and projects related to automated driving, electromobility, connectivity and mobility services. Brake Parts earns award Brake Parts Inc. received the NAPA Partnership Award during the annual National Automotive Parts Association (NAPA) Vendor Summit. Yokohama extends partnership For the eighth straight year, Yokohama Tire Corp. is partnering with Major League Baseball’s Los Angeles Angels team.

Focused on dealers Nexen looks at new LT tires and a possible U.S. plant Nexen Tire America Inc. has been pretty aggressive in the marketplace the last few years. Modern Tire Dealer recently caught up with Kyle Roberts, senior director of marketing, to ask him about Nexen’s nearterm plans. As expected, they remain aggressive. MTD: Have you made any changes to your associate dealer program, Next Level, for 2017? Roberts: Yes. We have removed the $1 million giveaway piece of the program; however, we re-invested those dollars into Double Rewards for the first quarter and possible additional double rewards later in the year. We are continuing to award gift cards to select winners every quarter. The last piece is we are switching to check disbursement exclusively and removing the reloadable debit cards. MTD: Do you have any plans for 2018 you can talk about, including new products or a product category you are focusing on? Roberts: 2018 plans are to focus on a larger consumer advertising campaign to help increase awareness. We will also be looking to expand our light truck line of products that can help round out and complete our line. MTD: Are you considering building a plant in the U.S. or North America? Roberts: Yes, we are currently investigating locations for a U.S.-based manufacturing facility. MTD: What tier are you competing in, and which brands do you feel are your direct competition? Roberts: We are competing in Tier 2 and our key competitors are Hankook, Kumho, Cooper, Toyo and Yokohama. Nexen launched the N’Fera AU7 earlier this year. Roberts says the ultra-high performance all-season tire was designed to have “superior performance in wet conditions.” It is available in 44 blackwall sizes ranging from 205/55ZR16 91W to 275/35ZR20 XL 102Y. The company also introduced the N’Priz AH8 late in 2016, with the size rollout continuing into 2017. The grand touring all-season tire is the replacement for Nexen’s best-selling CP672. “It is The new N’Fera AU7 is available designed to have better tread life and in 32 W-rated and 12 V-rated snow performance than the previous sizes. CP672,” Roberts says. The N’Priz AH8 is available in 56 blackwall sizes ranging from 185/65R14 86H to 225/55R19 99H. — Bob Ulrich

Kenda sponsors Cleveland Indians Kenda USA is the Cleveland Indians official partner through the 2017 Major League Baseball season. The agreement gives Kenda TV-visible branded home plate signage and baseline signage. Kenda sponsored the Cleveland Cavaliers in 2016 and also sponsors the Brooklyn Nets, Columbus Blue Jackets and Ohio State.

MTD May 2017

News/views

bites

Trelleborg expands sales team Douglas Saville is Trelleborg Wheel Systems’ new Midwest sales manager for agriculture tires in North America. His 30 years of experience includes 14 years running his own tire dealership. ITDG member is on council Chris Wyborny of Ramona Tire Inc. in Hemet, Calif., and member of Independent Tire Dealers Group LLC (ITDG) participated in the 2017 Federated Insurance Advisory Council. Treads are SmartWay-verified Two trailer/drive treads from the AcuTread Alliance Group have earned SmartWay verification: the SAT 17/32nd and the 445/50 STT1 13/32nd. Milestar sponsors outdoor fun The Milestar brand from Tireco Inc. has entered into a multi-year agreement to become the official tire of 307 Adventures, a company that leads consumers on outdoors experiences throughout Wyoming. ITRS has a new licensee International Tire Repair Solutions Inc. (ITRS) has signed LaSalle, Quebec-based RTS RingTread Systems Inc. as a C2G (cradle to grave) Tire Management repair facility. ITRS is based in Montreal. Laufenn winter tire wins award Hankook Tire Co. Ltd.’s Laufenn I Fit winter tire has won a 2017 Red Dot Design Award. Denso sponsors racer Denso Products and Services Americas Inc. is partnering with Pro Stock Motorcycle racer Angie Smith as her lead sponsor for four contests during the 2017 NHRA Mello Yello Drag Racing Series.

Tariff rates go up, others go down The latest annual reviews of tariffs on off-the-road tires from China have resulted in changes to how much tire makers and importers will pay on the tires they import into the U.S. In the anti-dumping investigation for the period September 2014-August 2015, the Department of Commerce (DOC) says the rate for Xuzhou Xugong Tyres Co. Ltd., (also known as Armour Rubber Co. Ltd. or Xuzhou Hanbang Tyre Co. Ltd.) should be 33.08% — that’s nearly half of what the company was assessed after the previous year’s review; then it was 65.33%. And because Xugong was one of the primary companies the DOC investigated (the agency calls them a “mandatory respondent”), the drop in its rate lowers the rate of these nine other companies to the same 33.08%: • • • • • • • • •

Shiyan Desizheng Industry & Trade Co. Ltd. Qingdao Jinhaoyang International Co. Ltd. Sailun Jinyu Group Co. Ltd. Weifang Jintongda Tyre Co. Ltd. Zhongce Rubber Group Co. Ltd. Weihai Zhongwei Rubber Co. Ltd. Qingdao Qihang Tyre Co. Qingdao Free Trade Zone Full-World International Trading Co. Ltd., and Trelleborg Wheel Systems (Xingtai) China Co. Ltd.

One thing that hasn’t changed is that the bulk of companies that were assessed the country-wide rate will continue to pay 105.31%. Subsidy rates go up As for the countervailing investigation — which covers subsidies from a foreign government that a company receives — the latest review is prompting substantial rate increases. For Guizhou Tyre Co. Ltd., the rate is increasing from 2.52% to 34.46%. For companies not selected for an individual review the new rate of 40.24% is almost eight-times higher than the previous 5.65%. The good news for these companies is that their rates could have been even higher. When the DOC published preliminary countervailing rates in October 2016, Guizhou’s rate was to be 38.19%, and the “others” category rate was to be 54.20%. (It’s not uncommon for the DOC to make revisions after companies provide additional data for consideration.) Why a review? Companies who are assessed tariffs have the right to request a review of the data once a year. The government publishes a notice in the Federal Register each month of the investigations that had been finalized in that same month in previous years, and companies have a certain amount of time to request an administrative review. Sometimes no one makes a request. In the case of the anti-dumping investigation on OTR tires from China, the 2016 review was the seventh review. Tariffs on OTR tires from China were imposed beginning in 2008, and they were renewed in 2013. Tariffs are imposed on five-year cycles, and the next mandatory review of these tariffs is in 2018. — Joy Kopcha

MTD May 2017

News/views

bites

Apollo to relocate N.A. office Apollo Vredestein Tyres North America Inc. will relocate its corporate headquarters on June 1, 2017, from Metuchen, N.J., to Atlanta, Ga. TGI president is in hall of fame Joaquin Gonzalez Jr., president of Tire Group International LLC, has been inducted into the University of Miami Sports Hall of Fame. Gonzalez Jr. is a former professional National Football League offensive tackle for the Cleveland Browns and the Indianapolis Colts. McCarthy relocates store McCarthy Tire Service Inc. has relocated its Reading, Pa., store to a larger facility less than two miles away. The company plans to expand its existing commercial tire sales and services, and add fleet mechanical services, engine diagnostic work and heavy-duty truck repair at the new outlet. ZC Rubber adds capacity Zhongce Rubber Group Co Ltd. (ZC Rubber) will begin producing skid steer tires and pneumatic bias industrial forklift tires at its factory in Thailand in May 2017. The Thailand plant will later add radial off-the-road and port tires. Nitto hires sales executive Nitto Tire U.S.A. Inc. has hired Jeff Bootz as vice president of sales. Bootz comes to Nitto Tire from its sister company, Toyo Tire U.S.A., and he began his new role on May 1, 2017. He reports to Nitto Tire U.S.A President and COO Keiko Brockel. Ride Control sponsors contest Ride Control LLC will award a custom 1967 El Camino truck to the winner of a sweepstakes honoring the 50th anniversary of the HiJackers brand. Viewers of PowerNation TV’s Truck Tech show have until the end of August to enter the 2017 sweepstakes.

Double Coin expands warranty Double Coin Holdings Ltd. has extended the warranty on radial truck tires to seven years and three retreads. The warranty applies to Double Coin radial truck tires manufactured starting the first week of 2017. The old warranty was either five years and two retreads or seven years and two retreads. An eight-year evaluation performance study and input from customers led to the new warranty, according to Walt Weller, vice president of China Manufacturers Alliance LLC (CMA). “There had been conversation in the market about some retreaders not accepting Chinese-produced tires for retreading. We wanted to separate ourselves.” Weller said the warranty is the best of Walt Weller says the improved any Chinese manufacturer and is on par warranty applies to all Double with premium brands as well. Coin tires produced in 2017 and sold in the U.S., Mexico, Double Coin produces truck tires in three Canada and Central America. Chinese plants and will begin production at a facility in Thailand by mid-year. CMA is a Double Coin subsidiary.

Pirelli renames commercial unit On April 1, 2017, Pirelli & Cie SpA changed the name of Pirelli Industrial Srl, its commercial tire enterprise, to Prometeon Tyre Group Srl. The move was the last step in officially separating its commercial tire business from its consumer tire activities. Prometeon Tire Group produces Pirelli brand commercial tires at four factories: two in Brazil, one in Egypt and one in Turkey. More than 7,000 people work at Prometeon, a company that until March of 2017 operated inside the Pirelli group with the name Pirelli Industrial. The group is 52% controlled by TP Industrial Holding (100% controlled by Marco Polo International Italy, also the controlling shareholder of Pirelli), 38% by CINDA (a Chinese international investment company) and 10% by Aeolus (a Chinese company that produces industrial tires). Prometeon Tire Group has signed a commercial agreement with Italian company Iveco Defence Vehicles to develop and supply Pirelli tires for new-generation defense vehicles.

Dealers ask teens to ‘Drive United’ United Tire and Service LLC’s “I PROMise to Drive United” safe-driving campaign for teens includes an all-expense paid limousine ride to a school event for up to nine high school students. “Exciting events like prom and graduation are meant to be memorable events for our community,” says Ken Sylvester, a founding partner of the independent tire group whose members are located in Pennsylvania’s Delaware Valley. United Tire and Service locations are partnering with local high schools to sponsor safety initiatives for drivers of all ages. By pledging to “Drive United,” motorists could nominate a local high school student to receive an all-expense paid limo ride to prom or other school event for up to eight other students.

MTD May 2017

News/views

dates

May 24-28 Autopromotec, Bologna Exhibition Centre, Bologna, Italy +39 051.6424000 www.autopromotec.com June 14-16, 2017 Latin American & Caribbean Tyre Expo, ATLAPA Convention Center, Panama City, Panama (786) 293-5186 www.latintyreexpo.com July 14-15 Alabama Tire Dealers Association Convention, Perdido Beach Resort, Orange Beach, Ala. (256) 616-3587 www.alatiredealers.com July 14-16 Georgia Tire Dealers & Retreaders Association Annual Conference, One Ocean Resort & Spa, Atlantic Beach, Fla. (770) 947-2323 www.gtdra.com August 21-23 China International Tire Expo 2017 (CITEXPO 2017), Shanghai World Expo Exhibition & Convention Center, Shanghai, China +86 10 85898181 www.citexpo.com.cn September 10-13 Custom Automotive Network CAN Connect, Embassy Suites Anaheim - South, Garden Grove, Calif. (760) 346-5647 www.customautomotivenetwork.com September 27-30 Automechanika Johannesburg, JHB Expo Centre, Nasrec www.automechanika.com Oct. 31-Nov. 3 Automotive Aftermarket Industry Week including AAPEX, the SEMA Show and the Tire Industry Association’s Global Tire Expo, Las Vegas, Nev. (800) 876-8372 www.tireindustry.org

Sullivan Tire airs new commercials Sullivan Tire Co. Inc. is putting Dustin Pedroia from the Boston Red Sox behind the wheel in its latest TV commercial. The ad features Pedroia taking Sullivan Tire’s Vice President Paul Sullivan four wheeling in the Arizona desert. Pedroia has appeared in the Massachusetts tire dealer’s commercials regularly since 2008. His current marketing contract with Sullivan Tire Dustin Pedroia (right) takes Paul Sullivan on a runs through 2018. road trip through the Arizona desert in the latest The spots are airing Sullivan Tire commercial. on NESN (New England Sports Network) during Red Sox games and other local cable networks across New England. Sullivan Tire has more than 100 automotive and commercial service locations throughout Massachusetts, New Hampshire, Connecticut, Rhode Island and Maine.

Ford completes first phase of Omnicraft brand launch Ford Motor Co.’s new Omnicraft brand of replacement parts for all makes of non-Ford vehicles is now stocked at Ford and Lincoln dealerships across the U.S. In 2016, the Ford Customer Service Division launched Omnicraft to enable Ford dealerships and Quick Lane operations to better service non-Ford customers, according to the company. For the launch, the 1,500 most commonly requested parts became available, including oil filters, brake pads and rotors, loaded struts, and starters and alternators. Ford says the list of available parts will eventually grow to 10,000. The next phase of the launch will focus on engine and cabin air filters, brake master cylinders and wheel hub assemblies.

Omni United taps Caris Omni United (S) Pte. Ltd. has named Phillip Caris executive director of its U.S. businesses. He spent 32 years at Cooper Tire & Rubber Co., where he served as vice president of marketing, director of marketing, director of sales and marketing for Europe operations, director of strategic marketing and most recently, vice Phillip Caris will president of sales for North America. oversee all of Over the last 18 months, Omni United has acquired Omni United’s two distribution companies in the U.S. and has U.S. operations. expanded its footprint. While the company continues to sell to a number of mid-size wholesalers and large retail chains in the U.S., its own distribution business spans 24 warehouses that serve over 10,000 dealers. Caris will be expected to play a pivotal role in growing Omni United’s distribution business while catering to the interests of its existing distribution customers. His areas of focus will be acquiring new companies and consolidation of Omni United’s U.S. business. ■

MTD May 2017

Retailers are struggling, but young tire dealers have hope Automotive service and customer service are key By Joy Kopcha

hen it comes to retail, the national headlines are bleak. Hundreds of stores, selling everything from clothing and food to pharmaceutical items and appliances, are closing and companies are filing for bankruptcy. Does that mean someday, retail tire dealerships will only be a faint memory like those mall stores? I turned to our industry’s brightest young leaders for their perspectives. Are they worried retailers are “in a death spiral against online stores” (gloomy headline courtesy of Newsweek) and that the spiral will envelop the tire industry? Here are some of the responses culled from leaders who are On the Rise. Jeffrey Cheek, owner of Countryside Tire and Auto Service Inc., says retail tire dealers “must be aware, but I don’t think I’m concerned about the demise just yet. “I think you can see the entire industry becoming more sophisticated. The days of the dirty one-man garage attached to a gas station are going away quickly. The slick, well-run Discount Tires of the world are here to stay and independents like me have to adapt or lose out. “The 225/60/16 Goodyear Assurance A/S that we sell is the exact same tire a hundred other retailers, online or brick and mortar, sell. The margins have shrunk considerably and I believe will continue to do so. Where we need to focus is on service, both on cars and customer service. We need to value our customers, give them excellent service, and never give them a reason to look anywhere else for their automobile needs. Tires and parts can be successfully sold via the internet but you can’t outsource the service we provide to our customers.” Cheek was happy to see Michelin North America Inc. pull the plug on its OnSite mobile installation service in November 2016. But that doesn’t give retailers abundant breathing room. “If wholesalers, or anyone else for that matter, figure out how to sell online and install at home, we are in trouble. “However, I think we provide more service and peace of mind than people sometimes give us credit for,” Cheek says. “Customers are looking for someone to be their car expert. That is difficult if not impossible to replicate via the internet. Customers still want someone to check their vehicle out before a trip and give them the thumbs up, or they want someone

to listen to their concerns about a noise/rattle/vibration and either diagnose and fix it or tell them not to worry about it.” Chris Gaudioso, owner of Driven Automotive Service in Glenmoore, Pa., considers the service element of the tire business its saving grace. “I feel like most of the retail stores are closing because of online giants like Amazon. Most tire dealers should be safe from this as long as they’re competitively priced and offer other quality services since tires need to be properly installed and vehicles need trained technicians.” Tom Eisenberg, general manager of West Coast Tire and Service, agrees. He sees a common trait among the clothing stores and other retailers who are closing their brick and mortar shops: everything they offer is available online. “Yes, you can order tires online, but you can’t install them yourself, so we are saved in that respect,” Eisenberg says. “But I firmly believe that tire shops will become tire install centers and we will need to make our gravy on service and labor. “Being in West Los Angeles, online ordering is a big deal and we are constantly matching Tire Rack or Tire Buyer prices. Now that Michelin and Goodyear are going direct to consumer, we are seeing tire profit decrease rapidly.” Christian Garcia, manager of Freedom Tire Distributing Inc., thinks retailers like Macy’s and The Limited have more than a product problem. They have a consumer expectation problem. Consumers are more involved in purchasing goods online, and they’re constantly looking for deals of the day. “This is why larger retailers are trying to cut labor costs by adding automated self-checkouts. This new digital world is making it easier to purchase items. They come with free shipping and no questions asked if you decide to return it. “The tire industry is the same — we have unlimited tire options. My father, Tom Hofmann, told me back when he was working there were only 25 sizes of tires. Now there are unlimited brands and sizes and tires from all over the world.” Quick Chadwick, director of marketing for Tire Pros by American Tire Distributors Inc., says all those options mean tire dealers have to be smart. “It used to be ‘only the strong survive.’ These days, it’s more like ‘only the smart and the quick survive.’ We’ve got to really understand and embed ourselves with the way other retailers, like Amazon, are embracing technology to make smarter, faster decisions and provide experiences that are easy for consumers.” ■

‘You can’t outsource the service we provide to our customers.’

new generation of leaders is influencing the livelihoods of today’s independent tire dealers, and Modern Tire Dealer is recognizing those who are On the Rise. Young leaders, please join us. Go to www.moderntiredealer.com/ontheriseform.

MTD May 2017

NumbersThatCount

Relevant statistics from an industry in constant motion.

$8,500 Average annual cost of owning and operating a vehicle. Source: AAA

$500 -$600 Average vehicle repair bill.

Source: AAA

125,205

Number of individuals trained so far by TIA in automotive service plus commercial, earthmover and farm tire service. Source: Tire Industry Association

30K

The approximate number of Vipers built by Dodge and SRT at the Mack Avenue Assembly Plant (1992–1994) and Conner Avenue Assembly Plant (1995– current), both in Detroit, since 1992. Source: Fiat Chrysler Automobiles

1954 4,615 The year Goodyear became involved in NASCAR. It has been the official tire supplier to its top three series since 1997.

The number of retreaded tires produced by Southern Tire Mart LLC, the number 1 ranked retreader in the U.S.

Source: Goodyear Racing Public Relations

Source: MTD research

www.moderntiredealer.com

19.54

Average advertised price for an oil change in 2016. Source: Modern Tire Dealer’s 51st annual Facts Issue, January 2017

35/25

Number of non-union/union tire plants in North America. Source: Modern Tire Dealer’s 51st annual Facts Issue, January 2017

Your marketplace

Cost pressures likely will continue to build

ccording to the results of our survey, The sharp move in raw material prices since demand for passenger and light truck 3Q16 combined with nearly every notable tire replacement tires declined in March. manufacturer already announcing or enacting Indeed, from a volume standpoint, the dealers sharp price hikes almost guarantees that tire costs reported they sold 0.8% fewer tires in March are going to be meaningfully higher in 2017. We relative to the previous year’s period. The decline think the initial price hikes will stick; however, we marks the third straight month of poor results are monitoring inventory levels closely as sell-out versus the prior year’s period. However, on a trends lagged sell-in trends in 1Q17. At this point, more positive note, trends improved sequentially. we have not heard anything too alarming on this Needless to say, it appears that the lingering By Nick Mitchell front; however, we will start to worry more about effects of warmer-than-normal winter weather this risk if retail demand remains weak through seen in the first two months of the year continued to the end of spring. If channel inventories become a bigger weigh on demand for passenger and light truck tires in issue, the recent price hikes could be partially negated by March, especially in the Northeast, Midwest and Upper increased promo activity or manufacturers may need to Mid-Atlantic regions of the country. delay further price hikes, especially in the Tier Two and As noted last month, the slow start to the tax season Tier Three segments of the market. also was a sizeable hurdle for the industry given the fact Regardless what the future holds, we believe the dealer that many households earmark these funds for big ticket community will be able to offset any net cost pressures purchases, such as new tires. The Internal Revenue Service’s through their own price adjustments. data indicates cumulative tax refunds were still down In our opinion, operators who lead with a model that 1% year-over-year through the end of March; however, includes high quality of service at fair prices will be able disbursements were up 17% in March versus the prior to maintain their margin structure in this category, while year’s period. The latter stat helps explain why many of those who sell on price alone will only opt to pass along the respondents noted traffic and sales improved from the higher costs and neutralize the impact on gross profit. the prior month albeit at a less than expected degree. In regards to the whole quarter, it is worth mentioning that Monthly survey some respondents speculated the late tax season resulted A number of independent tire dealers were surveyed in consumers allocating more of their tax refunds to other concerning current business trends. Except for tire prices items rather than car repairs and tires, which could have and costs, the results of the March 2017 survey are compared weighed on demand trends throughout the first quarter. with those of March 2016. Go to www.moderntiredealer. Despite the slow start to the year, we continue to believe com for complete survey results. that a favorable backdrop, including low fuel prices, solid job growth, an expanding car parc and healthy miles Dealer costs were slightly higher The tire dealers noted manufacturer pricing on value and branded products, on a net basis, slightly increased in comparison with March 2016. It is important to remember that the first price increase in the channel (Goodyear’s) Dealers NOV DEC JAN FEB(R) MAR(P) MAR(16) became effective in February 2017, with the majority of Passenger tire manufacturers following suit in March and April. As such, Will improve 50% 50% 25% 67% 33% 50% cost pressures likely will continue to build. Will worsen 0% 0% 0% 0% 0% 0%

How dealers view near-term business

Will stay level

50%

75%

33%

67%

503%

Truck tire Will improve Will worsen Will stay level

100% 0% 0%

50% 0% 50%

50% 25% 25%

40% 5% 60%

67% 0% 33%

50% 0% 50%

R-Revised

P-Preliminary

driven trends, combined with more normalized weather patterns going forward, should lead to decent volume growth in 2017. It is worth noting that most dealers shared this sentiment, as a large percentage of the respondents indicated they, too, anticipate sell-out trends will accelerate throughout the next six months.

Repair sales increase year-over-year in March

The dealers who responded to the MTD survey indicated automotive repair sales trends improved in March after flat trends in February interrupted four consecutive months of increasing service revenues. Specifically, these dealers indicated service sales, which accounted for a net 18% of total revenues, were up 1.8% on a year-over-year basis in March, which compared to increases of 5% or more from October through January and flat trends in February. ■

Nick Mitchell is senior vice president, research, for Northcoast Research Holdings LLC based in Cleveland, Ohio. Mitchell covers a variety of subsectors of the automotive industry.

MTD May 2017

feature

The decade of the CUV tire

There’s still room for more ‘significant growth’ by 2020 By Joy Kopcha

UVs are on the verge of running passenger cars off the road in America. Tire makers insist it’s not a matter of if it will happen. It’s when. And it signals good news for tire dealers, says Drew Howlett, product manager for light truck and SUV tires at Falken Tire Corp. “There are over 40 million CUVs registered in the U.S., which equates to over 160 million CUV tires touching the ground today. Many of those CUVs were sold in the past five years, and many of the CUVs on the road today have yet to see their first replacement tire cycle.” Howlett says CUVs represent one-third of vehicles sold in America, “and by 2020, nearly one CUV will be sold for every car sold.” Bob Toth, director of industry relations for Goodyear Tire & Rubber Co., looks at even more aggressive estimates. “By 2018, the CUV segment is projected to become the largest segment within U.S. original equipment, surpassing the auto segment and twice as large as the pickup truck.” Todd Bergeson, senior manager of product planning and technical services for Toyo Tires U.S.A. Corp., says, combined, CUV and small SUV segments make up the fastest growing vehicle sub-segments in the U.S. aftermarket. “There are no signs of a reduction in consumer demand for small utility vehicles. Industry experts believe U.S. auto sales will remain flat for the next few years, which likely means that small SUVs and CUVs will steal share from the passenger car segment, which is more volatile than light truck.” According to new vehicle sales data from the first three months of 2017 compiled by Good Car Bad Car, passenger cars maintain a clear lead on CUVs. But there’s evidence of a swing. Sales data shows the year’s top-selling CUV, the Nissan Rogue, out-sold the top-selling sedan, the Toyota Camry, by almost 18,000 units through the end of March. To meet that growing demand, tire makers are investing in CUV product lines and expanding size offerings. “The CUV tire segment nearly doubled from 2010 to 2015,” says Fardad Niknam, director of light truck business development for Yokohama Tire Corp. “A continuation of the aggressive trend is unlikely through 2020, but significant growth is still expected.” Brandon Stotsenburg, vice president of automotive for Kenda Tires USA, says the tire maker sees CUV tires gaining a larger share of replacement sales. “Because of recent trends, Kenda sees the CUV replacement tire market increasing at an above-average rate for the next three-to-five years.” Steven Smidlein, North American senior vice president for Apollo Vredestein Tires Inc., calculates that “above-average rate” at 6.5% over the next three-to-five years. Some of that demand will come at the expense of tires for vans, points out Robert Waytashek, product marketing manager

for Giti Tire (USA) Ltd. But the real difference will be seen in passenger tires, says Kyle Roberts, senior director of marketing for Nexen Tire America Inc. The tire maker estimates CUV tires “can match or surpass passenger tires within the next 10 years.” With such a seismic shift on the horizon, Modern Tire Dealer asked tire manufacturers to talk about the distinguishing characteristics of a CUV tire, and also address the vehicle dynamics and ride properties consumers might miss out on if they don’t select a dedicated CUV tire.

The future of the CUV tire market is optimistic, Toyo says, as the versatility, price point and fuel economy of the vehicles remain a focus of auto makers.

MTD also has assembled 17 sales tips to help you close the CUV tire sale, plus the latest CUV tire products available in the U.S. Look for new CUV tires still coming to market in 2017.

MTD: What distinguishes a CUV tire from its bigger brothers, the SUV tire or light truck tire? Smidlein, Apollo Vredestein: The answer lies in understanding the difference between SUVs and CUVs. SUVs are truck-based, body-on-frame chassis; CUVs are more car-based, uni-body chassis.

CUV tires 17 tips to help you close the sale Tire manufacturers offer their best advice to help dealers steer CUV consumers to the appropriate tire. Smidlein, Apollo Vredestein: When a consumer defines his vehicle as a car or truck, he is in some way defining his expectations. Comfort, noise, ride and handling are the performance parameters that are more relevant for a CUV consumer. Mathis, Atturo: Don’t limit the offerings to a CUV owner to an OEtype replacement tire. Investigate how they like to use the vehicle beyond commuting to see if there is an opportunity to upgrade the customer to a more exciting tire option, as well as a wheel package. Tom Sullivan, public relations manager for Michelin’s BFGoodrich brand: Tires for CUVs should be selected by the size, speed index, and load requirements stated on the vehicle door jamb placard. Also, the consumer’s driving style, needs and usage conditions should be considered in selecting the right tire for them. Hayes, Bridgestone: Our research shows that drivers of CUVs, particularly drivers of CUVs with allwheel drive or four-wheel drive, believe their vehicles will perform to a certain level in wintery conditions simply due to the vehicle type. While it’s true all-wheel drive and four-wheel drive technology help in some driving maneuvers — for example, it can help with acceleration — dedicated winter CUV tires are optimized for performance in the cold and unique conditions winter brings. With enhanced stopping power in particular, drivers of CUVs will very much benefit from this technology. Maher, Continental: When consumers see their CUV as more of a utility vehicle, they will be better suited to choose a tire with a CUV design. CUV-specific tires typically have touring-type characteristics plus a more truck like appearance ...Continued on page 32

Owners of CUVs expect the performance of a car — comfort, handling and noise — along with the space of a SUV. Michael Mathis, president of Atturo Tire Corp.: The two factors that distinguish a CUV tire from an SUV or LT model is the load capacity and speed rating. Typically, the load carrying requirement will be lower and the speed rating slightly higher than a base SUV or LT tire. Justin Hayes, product manager for Bridgestone Americas Tire Operations LLC: The forces and accelerations placed on a tire are different when applied to a CUV. In general, a CUV will provide a more car-like ride and handling experience, while a SUV will feel more like a pickup truck. While there is some tire size overlap between the different vehicle segments, in general SUVs use larger tires similar to what are found on trucks, and CUVs utilize smaller tires due to the generally smaller wheel wells. Joe Maher, passenger tires product manager for Continental Tire the Americas LLC: CUV tires, like passenger car tires, are designed for traction, ride comfort and long wear. These are the same factors consumers look for when making a tire purchase. CUV-specific tires typically have these characteristics plus a more truck-like appearance and performance with features like more rim protector flange, outlined white letters, and a more robust looking sidewall. Many of these CUV tires also have some off-road capability since many of these vehicles are all-wheel drive and can be used in light off-road situations. Scott Jamieson, director of product management for Cooper Tire & Rubber Co.: One distinguishing factor is the tire’s shape. The shape of a CUV tire provides a balance between the stability of a light truck tire and the handling of a passenger car tire. Handling is important as most CUV owners want their vehicles to handle like a passenger car, but also want tires that support the extra cargo carrying capacity of a CUV. Howlett, Falken: Could a highway allseason “H/T” non-LT tire design work on a CUV given the fitment is correct? Sure. But that tire won’t be optimized for modern crossover platforms. It was likely developed on a pickup truck with a body-on-frame construction and solid rear axle. Pickups tow more often and see payload and tongue loads more often than CUVs. Light truck tires have to be designed to handle these types of situations, and often end up compromising ride quality when applied to CUVs.

Waytashek, Giti: You will get a better ride experience and slightly crisper handling with a CUV tire versus a SUV or light truck tire. As for looks, CUV tires appear less rugged with a more premium touring design than a typical SUV/light truck tire. Although larger P-metric sizes are typically only offered as SUV/light truck tires, most CUV tire sizes are common with highway SUV/light truck tire sizes. The real distinction between the two is in the performance and appearance. Toth, Goodyear: Tire sizes specified for use on CUVs, SUVs and light trucks are commonly larger in diameter, with higher load capacities versus the smaller sizes used for passenger sedans. CUV tires offer the appropriate size and load-carrying capability for a specific CUV, as specified by the vehicle manufacturer.

Michelin estimates 8 million CUVs and SUVs will be sold annually by 2021.

Wes Boling, public relations manager for Hankook Tire America Corp.: In general, CUV tires will have a larger emphasis on road noise reduction and overall comfort than tires suited for light truck and fullsize SUV applications. Light truck tires, as compared to CUV tires, often exhibit more of an emphasis on robust construction for load handling coupled with long tread life. Also, you will see CUV tires being offered in sizes not ordinarily found on light trucks. Stotsenburg, Kenda: Due to the platform relationship to sedans, the consumer expects similar tire performance with emphasis on durability/wear and noise/ride often seen in grand touring tires. The aftermarket is looking for first and second replacement, which reflects the original equipment tire performance characteristics at a reasonable value, while the third and fourth replacements, particularly on high-volume sizes such as the 225/65R17, tend to emphasize price and durability more than handling, braking and noise. Size reflects the character of the CUV as

MTD May 2017

THIS CHANGES EVERYTHING

CUV tires and performance. Many of these CUV-specific tires also have some off-road capability since many of these vehicles are all-wheel drive and can be used in light off-road situations. Jamieson, Cooper: With a CUV tire, it’s all about comfort! CUV tires typically offer a tread design that provides a smooth and quiet ride. Also, a consumer is more likely to get a long, even tread life out of a tire that was designed with their specific vehicle type in mind. Most people with CUVs are using these vehicles as the family driver, meaning they put many, many miles on them with the family in tow, so mileage is important. CUV tires also typically offer lower rolling resistance for fuel efficiency and all-season performance. Howlett, Falken: Our market research reveals CUV owners care about safety above all other attributes of tires purchased, followed by reliability and longevity. These ...Continued on page 36

Since the day CUVs were introduced, Yokohama’s Fardad Niknam says there’s never been a clear definition to distinguish them from an SUV. “The tire industry started to develop a CUV family of tires to address the market gap not covered by SUV lines.”

an elevated platform with larger diameters representing an aesthetic desire at both the OE and replacement levels. There is a higher percentage of 18-inch or larger tires. Tom Carter, technical communications for Michelin North America Inc.: CUVs and SUVs are sophisticated with advanced safety systems. A good tire is an essential part

of that link. A dedicated CUV/SUV tire is going to “feel right” to the driver and to the safety systems on board mainly by providing proper cornering power and traction. Sticking with a similar tire to the OE tire will help keep consumers happy. There is no hard and fast classification or agreement between OEMs and tire makers on

MTD May 2017

INTRODUCING THE ALL-NEW

The all-new GEOLANDAR M/T G003™ is built to dominate with rock-solid GEO-SHIELD™ technology that delivers strength, crushing performance and merciless traction. And with over 90% market coverage and intimidating good looks, this new Yokohama tire will change everything. 8% LONGER TREAD LIFE

†

2.3 dB QUIETER ON THE ROAD

STOPS 51’ SHORTER ON WET ROADS

All performance results are based on third-party commissioned tests using a pick-up truck equipped with LT265/70R17 LR E tires. Tires were tested against other leading brands under controlled conditions and at various speeds. The data reported at 40 mph for wet braking and 44 mph for interior noise. Individual results may vary depending on vehicle type, tire maintenance, driving style and road condition. For complete test results write to Yokohama Tire Corporation at 1 MacArthur Place, Suite 800, Santa Ana, CA, 92707.

CUV tires what is a CUV or SUV. For one automaker a CUV may be closer to an SUV for another manufacturer. In general, I think a tire is more suited for a CUV versus an SUV if it is more touring oriented, is possibly smaller in diameter and width, and places less importance on off-road traction. Roberts, Nexen: Size is typically the distinguishing factor. CUV tires are mainly

under 65 series with H or V grade, and SUV/LT tires are mainly 70 and 75 series with S or T grade. Hans Dyhrman, director of marketing for Nokian Tires Inc.: A CUV tire is closer to a passenger tire in terms of its ability to deliver a smooth and comfortable ride. Enrico Ongis, director of product and planning for Pirelli Tire North America

Inc.: Size range is one distinguishing factor because CUV tires are in a size range between passenger and SUV vehicles. CUV products do not contain the higher load range tires (LRC/D/E) which are typically found in the LT and some large SUV products. As a result, these CUV products have a limited towing capacity, and are not appropriate for vehicles with the capacity for towing the high loads such as light trucks and large SUVs. Bergeson, Toyo: There is no clear line that can be drawn between a CUV and a small SUV. It’s up to the vehicle manufacturer as to how they classify their new models. Does CUV mean “compact utility vehicle” or “crossover utility vehicle?” However you want to translate it, these CUVs and small SUVs have specific performance requirements that differ from larger trucks and passenger cars. Our Open Country Q/T is engineered specifically for these CUV and small SUV applications. We designed the tire to be quiet which is important on a uni-body constructed vehicle. We also designed the tire to have a comfortable and compliant ride, while offering cornering and steering stability. Brian Fjeldsted, vice president of marketing for Vogue Tyre and Rubber Co.: The CUV is replacing cars and consumers are looking for car-like features. CUV buyers typically are not looking for off-road capabilities versus traditional SUV consumers who are more interested in off-road capability. Size is not a distinguishing factor. Niknam, Yokohama: Size is one factor because there isn’t a lot of size sharing between CUVs and true body-on-frame SUVs. Vehicle size, weight and balance play a role in the design process as CUVs are designed to be more car-like and SUVs are still very truck-like. MTD: What happens if a consumer chooses a touring tire for his/her CUV? What’s the effect on vehicle dynamics when a CUV is riding on a touring tire instead of a dedicated CUV tire? Smidlein, Apollo Vredestein: A touring tire with good ride comfort, long mileage, low noise and good enough all-season properties is not very different from a CUV tire. However, touring tires are S- and T-rated, while crossover tires are more H- and V-rated, making them

MTD May 2017

CUV tires are the exact same reasons why CUV-specific tires are the right choice for today’s customer. Having a tire that was developed for a particular subset of vehicles maximizes safety by ensuring the tires were developed and tested in real world conditions. The footprint of the tire was optimized for CUV vehicles, ensuring the shortest possible stopping distance in inclement weather, as well as even tread wear across the tread pattern. Toth, Goodyear: As with any tire sale, the most important aspect of the process is understanding the consumer’s needs and delivering the tire that best meets them. Some considerations may be responsiveness versus all-season traction, or long wear and soft ride. Because CUV tires can be sporty or sedanlike, and used for everything from off-roading, pulling a boat, or everyday activities, engaging with the consumer and finding his or ...Continued on page 38

suitable for high speed driving and handling compared to touring tires. Hayes, Bridgestone: It’s highly dependent on the tire and vehicle platform to which the tire is applied. We recommend a driver take their vehicle to a qualified tire retailer and have a discussion about their vehicle type, driving style, expected road conditions and other needs. We also recommend the driver and tire sales associate check to see what the OE load index and speed rating are for the vehicle. If cars and CUVs, or CUVs and SUVs, share a tire size, it’s possible the load index or speed rating could vary between the different applications, and this is a consideration drivers should discuss with their tire retailer. Jamieson, Cooper: It is always best for drivers to select tires that are designed to provide peak performance for their specific vehicle. When drivers make the decision to use touring tires on their CUVs, they should expect performance trade-offs. Maher, Continental: Many CUVs sizes are also touring sizes. I cannot speak for all tire manufacturers, but Continental takes into account the most appropriate vehicle applications in the design. Our touring tires do fit CUVs. Some CUV consumers see

their vehicle much like a touring sedan and a touring tire fits this application fine. When the consumer sees their CUV more as a utility vehicle, they will be better suited to choose a tire with a CUV design. Howlett, Falken: Could a passenger car touring tire in the correct size and speed rating work for a CUV? Sure. However, the higher loads and higher center of gravity of a CUV compared to a sedan place a large amount of pressure on the shoulders of CUV tires under cornering and can cause premature tire wear. Passenger car touring tire designs typically don’t see this type of environment during the product development phase. Developing a tire specifically for the intended CUV platform allows tire profiles, footprints, construction, and tread pattern rigidity to be optimized for the target vehicle. Toth, Goodyear: A touring radial tire would generally provide a firmer ride with more responsive handling versus a standard passenger radial, and would perform well on a CUV, provided the touring radial selected is the appropriate size and load carrying capacity as specified by the vehicle manufacturer, and the manufacturer’s loading/inflation specifications are followed.

MTD May 2017

CUV tires her balance between comfort and performance will lead to customer satisfaction. Boling, Hankook: Stress that CUV tires were designed with their specific vehicle type in mind in order to deliver optimal performance. Compared to your everyday passenger touring tire, a CUV tire is constructed to undertake the more rugged demands that a CUV can occasionally be subject to. Stotsenburg, Kenda: Ask questions to know how the vehicle is being used to understand the best application and the prioritized needs for the driver and/or tire purchaser. Tires in 17- to 22-inch sizes will often be a larger monetary investment for the purchaser than anticipated. It will be important to understand the end user’s expectations for price and prepare options to assist them to find a good value. Take the time to let the end user know the benefits of purchasing ...Continued on page 40

Boling, Hankook: Most tires are optimized to be fitted to specific vehicle types, and CUV tires are no different. Although CUVs are most often based on passenger car platforms, things such as ride height, center of gravity and overall weight can create different driving dynamics. CUV tires are constructed differently than touring tires in order to withstand greater overall load. A driver could possibly experience things such as exaggerated sidewall flex or shorter-than-expected tread life when using a typical passenger car touring tire on a CUV. Stotsenburg, Kenda: It is important the tire dealer select a tire which, at minimum, meets the vehicle’s required load index and speed rating specified for the vehicle. Secondly, the dealer should find a tire which reflects the intended use for the end-user regarding loads, highway versus off-road, and all-season versus primarily winter driving. A properly designed CUV tire will have a footprint which accommodates the varying loads of all purpose usage while continuing to meet the handling, braking and wet performance characteristics of those vehicles. Properly designed CUV tires are slightly softer for improved ride comfort and, therefore, may have less responsive handling compared to a touring tire. Less responsive handling is generally preferred for CUV vehicles for improved overall stability. Ca r te r, Michelin: I don’t think it’s that simple where you can definitively say a tour ing class tire will do this and CUV tires will do that. Some CUVs will require LT tires and some will need passenger tires. There are too many other var iables and factors like the brand, construction, and tire line attributes, etc. In general the CUV

tire is probably more oriented for traction and is likely engineered to take the load and power of the CUV. For vehicle dynamics, some of the systems, like forward collision warning/auto braking really rely on long lasting performance from the tires. That is, they count on tires to stop well when new and when worn. These are important safety systems that are quickly evolving and improving, and high performing tires will be an important part in helping automakers ensure these systems are working as designed. Roberts, Nexen: The biggest difference between CUV tires and passenger tires is the tread block stiffness is higher and the structure of the tire is reinforced on a CUV pattern. This helps prevent rolling and loss of grip on a CUV which is typically heavier than a sedan model that operates on the same chassis platform. If the CUV was riding on passenger tires the weight distribution ratio would be too high, making the vehicle unsafe. Dyhrman, Nokian: For most consumers, there is very little impact to vehicle dynamics when choosing a touring tire over a CUVspecific tire. Most significant differences between the products lie in style design and look of the tire. Ongis, Pirelli: Since the customer requirements for noise and comfort are typically the same for both segments, the consumer may not notice an immediate difference. However, some of the CUV products are designed with a deeper tread depth to reach the targets for mileage warranty. So, the consumer could see some reduction in tread wear, depending on the size and tread depths. In all cases, it is important to be sure that the tires fitted have the proper speed code and load index as specified by the vehicle manufacturer. Niknam, Yokohama: That’s always a possibility that some of our consumers will decide to use normal passenger tires or SUV tires for their CUV vehicles because the common sizes exist. Usage of a passenger touring tire on a CUV often creates faster wear, due to weight distribution on the vehicle, and a compromise in handling. However, it may provide better fuel efficiency on the vehicle.

MTD: Tell us about your latest CUV tires. Apollo Vredestein: The Quatrac 5 is the one-tire answer for all weather conditions. Drivers don’t have to compromise safety or steering precision, and the tire offers excellent braking and handling on all wet surfaces, as well as snow. It’s optimized for stability, acceleration and handling. Atturo: The Trail Blade X/T is a hybrid

MTD May 2017

CONGRATULATIONS BIG O FRANCHISEE OF THE YEAR

AWARD WINNERS San Diego California, Big O Tires Convention, 2017 Two Snap Finance Merchant Partners were selected for top honors. We’re proud to call them our partners, friends, and all-around great guys. Well done Jeff and Jerry!

JERRY TIDWELL

JEFF SCHWAB

2016 Group A Big O Tires Franchisee of the Year

2016 Group C Big O Tires Franchisee of the Year

2016 1st Place Highest Percentage Sales Increase 2016 1st Place Highest Percentage Service Increase When Jerry’s mother passed away, he invested his inheritance in a Big O store in West Phoenix. Through his efforts there, he has seen a steady increase in sales year over year and credits Snap for helping him reach his 2016 sales goal well ahead of schedule. Congratulations Jerry! We’re happy to partner with amazing people like you!

At age twenty, Jeff had a fantastic customer service experience at a Big O store in Castle Rock, CO. He walked out that day thinking, “I want to work with those guys.” Soon, he was hired and six months later was managing a store. Now, twenty-four years later, he successfully owns six Big O stores in multiple states. Congratulations Jeff! We enjoy partnering with you and are happy for your success! “Snap helps us help all people, whether they have a million dollars in the bank or nothing in the bank.” — Jeff Schwab, Big O Tires franchisee

“Working with you has been a big game-changer for us. When it comes to Snap, I’m all in!” — Jerry Tidwell, Big O Tires franchisee

Learn how to grow your business with Snap at

sellmoretires.com YOUR NO CREDIT NEEDED FINANCING PARTNER snapfinance.com · 877-789-4384 · merchant@snapfinance.com

CUV tires the tire for the CUV goes beyond meeting the size, load index and speed rating. In many cases, the end user can have a tire which will reflect similar performance as the OE tires at a value price if that’s what is needed. Specifically focus on the noise, ride, wet and dry handling and wet and dry braking. If they are in light snow climates, a tire which has tested well in those conditions should be shown. Carter, Michelin: Just like any consumer tire transition, we think asking about driving style and what they like about the vehicle is a great place to start. If they like the traction in wet and snow, then a CUV/ SUV tire with excellent traction is well-suited for them. Next, it makes a lot of sense to talk about long lasting performance. Today’s CUVs are sophisticated with advanced safety systems. A good tire is an essential part of that link. A dedicated CUV tire is going to “feel right” to the driver and to the safety systems on board, mainly by providing proper cornering power and traction. Sticking with a similar tire to the OE chosen tire will help keep consumers happy. Roberts, Nexen: Sell the safety message. I think consumers can easily understand the weight differentials between the vehicle types and that the tire they use should be designed for the correct application. Dyhrman, Nokian: The best way for a dealer to sell any tire is to have a conversation with the customer about their driving experience to understand what attracted them to a CUV in the first place. Were they looking for a car that rides smooth on dry roads but also performs well when conditions deteriorate in rain or snow storms? Did they want a vehicle that felt safe in rainy or slushy conditions and drove straight without hydroplaning? Once a dealer understands why a customer purchased a CUV in the first place, and the features that are most important, he or she can explain the benefits of fitting ...Continued on page 42

Apollo says CUV tires, like the Quatrac 5, offer car-like performance because drivers expect a car-like ride.

CUV tires, like the Atturo Trail Blade X/T should be built for the vehicle’s higher center of gravity and short wheel base.

all terrain tire. It features aggressive off road style, with a civilized highway performance and true trail capability. The X/T is offered in several sizes targeting CUV applications such as 235/65R17 and 235/60R18. BFGoodrich: The BFGoodrich Advantage T/A Sport tire is aimed at the CUV market, and the Advantage T/A Sport LT fitments are coming to market in August. The tire delivers a combination of performance and versatility, with steering response, handling and durability combined with flexibility to prepare drivers for a wide range of weather and road conditions. The Advantage T/A Sport includes a 70,000-mile warranty. Bridgestone: The Bridgestone Dueler H/L Ecopia 422 is a dedicated CUV tire line that combines year-round traction, handling and comfort, along with reduced environmental impact. The fuel saver sidewall

compound helps lower rolling resistance by returning more energy back to the tire, and helps reduce heat generation. Continuous ribs provide traction and reduce heat buildup while also decreasing noise. Circumferential grooves push water out of the footprint to resist hydroplaning. Cooper: The Cooper Evolution H/T was created specifically with the CUV customer in mind. It delivers a comfortable ride, responsive handling, and all-season traction with a 60,000 mile warranty. Premium features include StabilEdge technology for enhanced handling and dry tracking stability and 3D Micro-Gauge siping to maintain wet traction and handling. The Cooper Evolution H/T also includes a silica tread compound and tread profile that provide even wear and long tread life. This tire covers 28 popular sizes to meet the needs of the growing CUV market.

The Advantage T/A Sport is part of the BFGoodrich Advantage T/A powerline for SUVs, CUVs and light truck fitments.

Bridgestone’s Dueler H/L Ecopia 422 provides a car-like ride while handling the forces and accelerations of the CUV.

MTD May 2017

Cooperâ€™s new Evolution H/T combines the comfort of a passenger tire with truck-like grip and stability.

The upgrade to this Falken Ziex CT50 is on its way to the U.S. later this year. Look for the Ziex CT60 for CUVs,

Falken: The Falken Ziex CT50 A/S offers limited sizing availability in a dedicated CUV highway all-season tire. The tire has been selected as OE on modern crossovers such as the Mazda CX-9. In the fourth quarter of 2017, Falken will release the Falken Ziex CT60 CUV A/S tire developed specifically for the crossover tire market. The Ziex CT60 already has been selected as OE by several automakers. Goodyear: The Assurance WeatherReady is a traction tire for CUV owners, available in 12 of the top 15 sizes. It combines a comfortable, quiet ride with the ability to help consumers handle all weather conditions. The tire features Evolving Traction Grooves with like-new traction as the tire wears; 3-D Tredlock Technology Blades to provide predictable traction in turns when the weather changes;

and a sweeping, asymmetric tread design that forces water away to support control in rainy or slick conditions. Hankook: The Dynapro HP2 is a CUVspecific tire that was developed to deliver low noise levels, improved tread wear, low rolling resistance and performance in both dry and wet weather scenarios. A high-stiffness center block and wide tread width deliver handling performance while silencer sipes help prevent unwanted road noise. Radial direction sipes provide improved handling in dry conditions while four channel circumferential grooves aid in water evacuation to resist hydroplaning on wet road surfaces. Kenda: The Klever S/T is designed for consumers looking to find the ultimate combination of performance and value. It boasts a 600 A A UTQG rating as well

Goodyearâ€™s Assurance WeatherReady combines a smooth ride with traction for all weather conditions.

The Dynapro HP2 from Hankook is a low-noise tire that offers comfort and confidence in varying road conditions.

www.moderntiredealer.com

CUV tires

the vehicle with tires that meet the customer’s needs and driving habits. Ongis, Pirelli: The critical customer benefits that should be highlighted are: low noise and comfort equal to that seen in passenger cars; confidence in wet stopping and resistance to hydroplaning; in the northern climates, traction to get home in the snow; and a tread wear warranty for mileage. Chris Gomez, product marketing manager for light truck, passenger and ultra-high performance tires, Toyo: What is vital to ensure a proper tire selection for a CUV owner, or any owner for that matter, is understanding the usage, consumer needs and expectations. As a result of those inputs a tire dealer can then place the customer in the right product, ensuring customer satisfaction. A dealer may have a CUV owner who works as a regional sales manager and is driving to visit clients multiple days a week covering a couple hundred highway miles. This customer may have a higher likelihood of favoring a tire with a higher life expectancy than ride comfort due to the demand placed on the vehicle. Another customer may work from home and commuting is limited to errands in the neighborhood and family activities like school and sports. This customer may be more likely to favor a quiet, comfortable ride due to local street driving habits. Fjeldsted, Vogue: Safety is important to CUV buyers. They are attracted to CUVs because the commanding seat height gives them a feeling of confidence. Selling the safety and confidence benefits of CUV tires should be the first priority. Niknam, Yokohama: We want our dealers to point out optimum wear performance, comfortable ride and excellent fuel efficiency as our three main factors on CUV products. Again, our CUV tires are designed for CUVs, and that’s the best way they can truly experience the perfect handling on the vehicle.

Kenda’s Klever S/T meets the load index and speed ratings required of CUVs, and is a durable, comfortable option.

CUV tires like the Michelin Premier LTX focus less on off-road traction and more on touring-like qualities.

as a 60,000-mile limited manufacturer’s warranty. Optimized for ride comfort and long tread life to balance strong wet, dry and light snow performance with steering response, the Klever S/T is a reliable replacement for OE tires. Michelin: The Premier LTX covers CUVs, as well as SUVs and light trucks. It features EverGrip tread technology that prolongs wet traction over time, giving drivers peace of mind and improved control. The technology also includes expanding rain grooves that widen and new grooves that emerge as the tire wears to resist hydroplaning. Sunflower oil keeps the compound flexible in lower temperatures, and tread blocks and sipes act like biting edges to get through snow. It’s available in 47 sizes ranging from 16-inch to 22-inch diameter wheel sizes. Nexen: The N’Fera RU5 is a dedicated

CUV tire available in 20 sizes ranging from 18- to 20-inch rim sizes with speed ratings of V and W. It includes a 65,000-mile tread wear warranty as well as road hazard protection and 24-hour roadside assistance. Nokian: The eNtyre 2.0 premium allseason tire is available in a variety of CUV fitments. It was specifically designed for the North American market and uses an inside/ outside tread pattern, special groove designs and modern silica compound to improve dry road handling, tread life, hydroplaning properties and wet grip without compromising winter grip . It also features noise dampening technologies and has low rolling resistance. The tire provides drivers safety, comfort and performance in an environmentally friendly tire. It’s available in 46 sizes ranging from 15 to 19 inches and in T, H and V speed ratings. Pirelli: Pirelli has sizes dedicated to CUVs

Nexen says CUV tires, including the N’Fera RU5, require performance in comfort, noise, handling and braking.

The eNtyre 2.0 from Nokian offers drivers confidence in driving performance, tread wear and reduced rolling resistance.

MTD May 2017

Pirelli’s Scorpion Verde All Season Plus is a long-lasting tire that offers all-season performance, plus some offroading capabilities for consumers.

The Open Country Q/T from Toyo balances mileage, handling and ride comfort in city and open-road driving to meet the needs of CUV consumers.

in the Cinturato P7 All Season/Plus and the Scorpion Verde All Season/Plus lines. Cinturato products were designed to provide performance in all weather conditions, with the replacement “Plus” version adding extra emphasis on longevity. The Scorpion line follows a similar model, and offers all-weather performance, but also possesses some light off-road capabilities. Toyo: The Toyo Tires Open Country Q/T offers a quiet,

comfortable ride, long-lasting tread life and attractive design. Built for a wide range of vehicles, from CUVs to luxury SUVs, this premium all-season tire provides confident handling and stability. If you think of a vehicle’s tires as an important component of a vehicle’s suspension system, the Open Country Q/T complements CUVs and small SUVs. Vogue: The Signature V Black SCT tire is manufactured with

Charting CUV sales in the U.S.: A Rogue leads the way For the past five years, the Honda CR-V has been the top-selling utility vehicle in the U.S. And sales figures through March 2017 show the CR-V is on track to beat last year’s total sales of 357,335 vehicles. Through the first three months of the year, sales are up 32.1% compared to the first quarter of 2016, according to data compiled by Good Car Bad Car. And yet, the CR-V isn’t the top selling CUV in America so far in 2017. The current leader is the Nissan Rogue, with 101,421 units sold through March compared to 94,057 for the CR-V. As a point of comparison, Good Car Bad Car notes the U.S. passenger car sector lost more than 200,000 sales in the first quarter of 2017, and is on track to lose around 825,000 sales by year’s end. Year-to-date sales are down for each of the top five selling passenger cars in the U.S.: the Toyota Camry, Honda Civic, Toyota Corolla, Nissan Altima and Honda Accord.

www.moderntiredealer.com

CUV tires

Yokohama’s Geolandar G055 was designed on and specifically engineered for CUVs with fuel efficiency and a comfortable ride in mind.

Vogue says CUV tires are mainstream as they replace the traditional sedan market. The Signature V Black SCT tire offers safety, durability, traction, comfort and a warranty.

Vogue’s Miracle Tread Compound infused with silica for traction and responsiveness. The addition of wide, circumferential grooves in the tread design allows for exceptional all-weather traction and better handling in wet weather conditions. The tire features Vogue’s signature Whisper Tuning and VogueTech Comfort Ride engineering and is backed by a pledge which includes a 60,000-mile warranty and a 30-day buy-and-try guarantee to ensure customer satisfaction. Yokohama: Loaded with premium technology, the Geolandar G055 is specifically designed to deliver confidence, value and comfort to drivers of today’s crossover vehicles and minivans. Yokohama’s specially formulated orange oil compound provides tread life and all-season traction. The G055 was designed to drive and feel like the middle ground between the Geolandar H/T G056 and the grand touring offering, the Avid Ascend. ■

MTD May 2017

feature

Suspension inspection Tips on servicing less-common air suspension systems

ust about every Asian and European luxury import nameplate manufacturer has a seven- to 10-year-old vehicle on the road with an air suspension at all four corners. Chances are one of these vehicles will be coming to your shop sooner rather than later. Regardless of the nationality of the automaker, most of the systems use German-manufactured air struts connected to a WABCO (Westinghouse Air Brake Co.) compressor. In between the struts and compressor are reservoirs, control valves and a lot of software controlling the system. The secret to diagnosing problems comes down to knowing what criteria the system uses to regulate the compressor/reservoir and having a scan tool that can interpret the information. These systems do not use the compressor to directly fill the air bladders. Instead, the compressor will supply air to a reservoir that is used to fill the bladders. Some vehicles, like Land Rovers and Jaguars, will have only one reservoir, while some Mercedes or BMWs may have multiple reservoirs. The reservoir is equipped with a pressure sensor and valves to send compressed air to the spring and exhaust excess pressure. Do not work on any reservoir unless the system is allowed to depressurize before performing any repairs. Some systems may require the use of a scan tool to release the pressure and re-pressurize the system. The reservoirs are typically made of aluminum. They can be located in the trunk or tucked behind fenders or quarter panels. It is rare for the tank to develop a leak, but it is common for the air-line connections. Air suspension systems look for information like vehicle speed, ambient air temperature and ride height. From this information, a system can calculate how long the compressor should run to fill the reservoir. If it is taking too long to fill a reservoir, the air-ride module will set a code, alert the driver, and put the system in a safe mode. The codes for this type of problem will typically include the words “replenish,” “reservoir,” “overheat,” “no pressure increase” or “timed out.” There are two main culprits for these codes — a weak compressor or a leak in the system. It is possible that a sensor in the reservoir is faulty, but this is extremely rare.

All air suspension systems are unable to do two things. First, they can’t measure wear in the compressor. As a compressor runs, the ring wears and the compressor is unable to generate enough pressure to operate the system. The control module can’t measure the wear on the ring. Second, air-ride systems can’t detect leaks in the system. However, what air suspension systems are able to measure is compressor run time. The control module will not immediately turn on the compressor when the engine is started and will trim the suspension from the air in the reservoir. Some systems will not engage the compressor until the vehicle has reached a predetermined speed like 25 mph. These rules are in place so moving air will cool the compressor. That way, the driver will not notice the compressor operating while the vehicle is stopped. But, in some cases, the compressor will run during startup if the pressure is low enough.

Photo courtesy of Arnott Inc.

Independent tire dealers account for more than $5 billion of the suspension service work performed in the U.S. That averages out to yearly sales of $189,000 for any tire dealer who offers both chassis/suspension service ($125,459) and shock and strut replacement ($62,379). Many high-end vehicles use air suspension systems that feature a lot of moving parts your technicians may not be used to servicing. Mike Mavrigian, editor of Modern Tire Dealer’s sister publication, Auto Service Professional, explains how to service this niche system with the help of KnowYourParts.com, the industry information campaign of the Automotive Aftermarket Suppliers Association.

A technician installs a new replacement air suspension strut into the front of a Range Rover Sport.

All four-corner systems are using air from the reservoir even if the car is parked. This is because as the vehicle cools, the air volume and pressure in the bladders and reservoir will decrease. The system will trim the ride height to make sure the vehicle is not sitting on the ground when the driver returns to the vehicle in the morning. Also, some systems will keep a level ride height if the vehicle is parked on an uneven surface, or the vehicle is unlocked and a load is placed in the trunk. But, most systems will never turn on the compressor to make a key-off correction. Most systems have fail-safe modes that preserve the system until it can be serviced. This means that the control module will not allow the compressor to meltdown if there is a leak. Also, most units will maintain minimum pressure or height in order to prevent a bladder from fully compressing and the suspension from bottoming out. Before a vehicle is returned to a customer, you should perform a calibration procedure for the air suspension system, if required. Calibration procedures typically involve measuring the four ride heights and entering the data into the scan tool. Not performing this procedure can lead to a comeback. ■

MTD May 2017

feature From 2% to 40% in 2020!

Prepare now for start-stop systems By Ann Neal

.S. market share for start-stop systems is growing tools to test batteries for their specific failure modes. Start-stop quickly. Estimates call for start-stop systems to be batteries rely as much on their reserve capacity (RC) as they installed on 40% of new vehicles sold in the U.S. do their cranking ability, so make sure your testing tool offers in 2020, up from less than 2% today. There are currently an the ability to assess RC.” estimated 4.9 to 5.2 million vehicles in operation equipped with John Munsell, battery product specialist for General Motor start-stop systems in the U.S., according to Dale Gospodarek Corp.’s ACDelco brand, says the key for shops will be training of Johnson Controls Inc. to diagnose and repair start-stop vehicles. “It is also important “In 2017, start-stop systems are still relatively nascent in to understand from a GM perspective that since an AGM the U.S. aftermarket, but they are becoming increasingly more battery or batteries are used in the vehicle that they must be popular,” says Gospodarek, who is vice president of marketing replaced with AGM batteries in the event of a failure.” and strategy for aftermarket U.S. and Canada. He notes that Munsell says that for vehicles manufactured by General in 2016 alone there were almost seven times more start-stop Motors, “we neither recommend, nor endorse replacing an vehicles produced than all types of hybrid, plug-in and electric AGM battery with an EFB battery. An EFB battery will have a vehicles combined. different charge profile than an AGM battery, which will lead Start-stop technology turns off the engine when the vehicle to premature failure of the battery.” stops and restarts it when the brake is released. Jim O’Hara, Gospodarek notes that the majority of batteries used today vice president of marketing for Clore Automotive Inc., says the technology is relatively easy to master and the equipment investment is relatively low. Shops need battery testing equipment optimized for start-stop absorbent glass mat (AGM) and enhanced flooded batteries (EFB) and appropriate charging equipment. “Positioning themselves to serve this market enables shops to capture the additional sales that often are associated with battery/starting/ charging system assessment, such as replacement battery, rotating electric and related cable sales,” says O’Hara. Gospodarek says the opportunities DSS-7000 battery diagnostic service system services start-stop, hythat start-stop systems offer are much Midtronics’ brids and conventional vehicles. Its capabilities include reserve capacity analysis. like any of the other new systems, such as PCM (powertrain control module) controlled engine in start-stop applications are AGM technology. “It is critically performance. “Training and marketing are the keys to being important to replace a worn-out AGM battery with a new able to service these vehicles. Shops that invest in training AGM battery. AGM batteries are the most robust batteries their staff on start-stop systems and then market their shop’s you can use for the high cycle demand of start-stop systems.” ability to service these systems will be the ones that see the Because AGM batteries come in similar group size and CCA most opportunities.” (cold cranking amps) performance ratings as standard flooded Mike Dziadus, senior account manager at Midtronics batteries, telling them apart can be challenging. “Always check Inc., says start-stop systems are already a part of the target the OE battery label, or consult the owner’s manual to confirm market for aftermarket providers. “Start-stop systems require that the vehicle is equipped with an AGM battery, and be sure a healthy battery in proper working condition to function at to specify AGM technology when ordering the replacement peak effectiveness, offering aftermarket service providers the battery from your parts supplier,” says Gospodarek. opportunity to improve customer service and satisfaction by providing preventative maintenance battery testing.” View start-stop as a system To fully assess battery condition in start-stop vehicles, shops Start-stop systems are typically more complex than tramust have the correct tools to test batteries for reserve capacity, ditional starting systems, according to O’Hara. They often according to Dziadus. “Aftermarket providers need the correct involve more than one battery and a mixture of battery types,

MTD May 2017

Batteries and they can incorporate battery the proper type of training and management systems that allow testing equipment for batteries for load management between and electrical/electronic systems. the various batteries. “Battery testers and charg“It is important to view starting/conditioning equipment stop as a system, assessing each are different for AGM batteries, component in relation to the overall so shops need to be up-to-date system, as opposed to focusing on on this equipment. In addition, the component separate from the start-stop vehicles manufactured system in which it operates. For by German automakers require instance, on two battery systems, a battery management system it is critical to assess the health of reset using special equipment. both batteries when troubleshooting Most other automakers do not a system problem, not just the prirequire this reset or any special mary starting battery,” says O’Hara. equipment to replace the AGM Munsell says AGM batteries The Solar BA327 digital battery and system tester battery,” he says. require special care when charged from Clore includes testing routines for start-stop Johnson Controls predicts startAGM batteries, as well as standard AGM, spiral offline. “This special care is to make wound, gel cell and flooded batteries. stop systems will find their way into sure that the charger has an AGM more than 40% of new vehicles switch that will supply lower voltage to the battery during the sold in the U.S. and will number over 40 million registered charging process. This lower voltage is required due to the charge vehicles by 2020. Automakers will continue to make refinereceptivity of AGM batteries. The maximum charging voltage ments to the systems to improve the consumer experience. Says for an AGM battery at 80 degrees Fahrenheit is between 14.4 Gospodarek, “In the coming years, you will begin to see a few volts and 14.6 volts. If the ambient temperature is higher than new vehicles with dual batteries for more energy availability to that, charging voltage goes down,” says Munsell. power electrical accessories as well as power new autonomous Gospodarek notes that current start-stop systems are considered driving features in the vehicles, such as autonomous emergency “low voltage” (below the 60 volt threshold) systems and present braking, self-steering and auto-park. These dual battery setups no particular challenges in servicing them, aside from having will be either AGM+AGM or AGM+Li-ion.” ■

MTD May 2017

Batteries

MTD May 2017

feature

LT tire repair TRMG revises its recommendations

he Tread Rubber and Tire Repair Materials Manufacturers Group (TRMG) has released additional Recommended Practices (RPs) for retreading and repairing through the Tire Retread & Repair Information Bureau (TRIB) website. The RPs are free to view on TRIB’s website, www.retread.org. TRIB says customers wanting to download a PDF version or receive hard copies of the RPs can do so through its online store for a small fee. “TRIB is glad to continue our partnership with TRMG to distribute these important documents,” says TRIB Managing Director David Stevens. “Now, retreaders and tire repair companies all over the world will have free access to the best practices for tire retreading and proper tire repair.” There are two size guideline charts for radial light truck tire repair. For fabric light truck tires up to but not including Load Range E sizes, the size guidelines are: • 6.50-12.50 • 215/85 to 255/85 • 215/75 to 265/75.

For steel or similar material body ply light truck tires Load Range E and above (highway service), the size guidelines are: • 225/75R16 to 245/75R17.

The size dimensions shown are for general guidance, according to TRMG. “Repair material manufacturers’ and new tire TRMG advises selecting the appropriate repair manufacturers’ recommendations unit, either a one- or two-piece repair, based may differ. Specific limits should on repair material manufacturer recommendabe based on recommendations tions. “For injuries with an angle greater than of the tire manufacturer, repair 25 degrees, depending on repair manufacturer, material manufacturer and type use a two-piece repair unit system.” of tire service.” (For sizes not covered, TRMG lematic with the increased popularity says consult the tire or repair material of puncture sealants. Whether they are manufacturer.) purchased in the aftermarket or come with vehicles without spares, they also Puncture repairs need to be removed. The big difference between light truck Here’s what TRMG has to say about tires below Load Range E and LT tires the matter. Load Range E and above is the size of “Tires that contain any type of afterthe permissible puncture repair. Both market puncture sealant(s) may have repairs should be limited to the tread been damaged as a result of being run area only, but light truck radial fabric under-inflated and/or overloaded, and body ply tire puncture repairs should not should be inspected accordingly.” exceed 1/4 inch (6.0 mm) in diameter What about tires designed with puncafter preparation. ture sealing? TRMG also addresses that For light truck radial steel body ply situation. tires, the puncture repair should not “Tires that are manufactured with exceed 3/8 inch (10.0 mm) in diameter puncture sealing capabilities require after preparation. specialized repair techniques. The tire and/or sealant manufacturers should be Cleaning tip contacted for recommendations. It may TRMG recommends removing all be necessary to repeat (the pre-cleaning contaminants from around the injury. process) to ensure that the repair area is However, this has become more prob- free of contaminants.” ■

Key repair terminology: from buff contour to buffing template Whether attempting a minor rubber repair (the only time a repair can be made in the bead area), puncture/ nail hole repair or section repair, one of the key steps involves buffing. Here is a glossary of buffing terms, courtesy of the Tread Rubber and Tire Repair Materials Manufacturers’ Group. Buff contour: the specified shape of a buffed area. Buff(ing): removal of the previously

vulcanized rubber surface. Buff line: the dividing line in the cross section of a tire between the buffed surface of the original tire and the new retread rubber. Buffed radius: a measurement of the buffed surface curvature from shoulder to shoulder. Buffed surface: a specifically prepared surface of a tire casing or repair area to provide proper texture to help promote adhesion to the new rubber.

Buffed texture: that surface produced by buffing, rasping or cutting as standardized by the Rubber Manufacturers Association. Buffer: a machine used to rasp the old tread from the casing. A powered rotary rasp provides a clean, even surface for adhesion of the new tread rubber. Buffing template: a machined device of a specified shape used to obtain the required buffed tire radius.

MTD May 2017

Counter intelligence

Facts, feelings and focus Focus on feelings supported by facts

s a kid growing up in Wilmington, Del., Let me give you a few simple examples of I played Little League Baseball. My mixing facts and feelings in a presentation. Many neighbor, Nat Shockley, the barber, of today’s tires come with a limited mileage warsponsored my team, the Delpark Colts. I loved ranty supported by the tire manufacturer. Every baseball, playing it and watching it. As you might customer can understand the difference between a imagine, I was a Philadelphia Phillies fan. My 50,000-mile and 60,000-mile rated tire. These are whole family was fans. My parents, my aunts and simple facts when you say to a customer that the uncles, my grandfather, my friends and neighbors, difference in price is only $20 and the difference we loved baseball. After supper in the evenings, is about additional years driving for only $20. during baseball season, you could always hear By Wayne Williams Though this is a fact, it sounds like a great deal, the game on the radio in the background as we an additional year for $20. Most customers will would ride bikes or play catch or finish homework. feel good about the added mileage for a few extra dollars. I had great feelings for the Phillies; winning was fun and losing was heartache. I hadn’t yet learned that most MLB teams lose a lot of games during the season. As a kid, I followed the numbers, the facts, if you will. I followed the batting averages and RBIs and the ERAs. Today, I don’t remember the facts, but I certainly remember the feelings. I also remember that in my early days in the tire and auto repair business, a boss told me that customers will soon Listen to the difference from a customer’s standpoint forget how much they paid, but will certainly remember between these two, near identical presentations. The first how they were treated. one presents the facts, and the next wraps the facts in A lot about our business is numbers, the facts. Tires are all feelings. The difference may sound like this to a customer: about numbers. Sizes are basically numbers: 35x12.50R20, 225/65R17. Uniform Tire Quality Gradings (UTQGs) • “I have two great choices for your Accord. I have 50,000start with numbers, such as 400 A-A. Mileage warranties, mile rated tires for $100 each, or 60,000-mile rated tires such as 55,000, are numbers. Of course, tire prices are all for $120 each.” numbers, along with installation charges — more numbers. • “I have two great choices for your Accord. I have 50,000I think you would agree that several weeks after buying tires, mile rated tires for $100 each, or 60,000-mile rated tires most customers would not be able to recite the numbers for $120 each. Most people drive about 12,000 miles a related to their tire purchase, but could explain how they year (pause) ... so the $100 tire should last about four felt or how they were treated. years and the $120 tire about five years (pause) ... an There is no way to get around the numbers, but there additional year for $20.” are ways to enhance feelings over facts. When dealing with the numbers, it’s important to consider feelings. All Lead with the facts and close with the feelings! Notice customers have feelings; some are harder to read the difference? The additional two short sentences take and, yes, some customers can be harsh, but we must about 12 to 16 seconds to say. May I suggest that greater consider how customers balance the facts and the customer trust and satisfaction takes 15 seconds? feelings. Today, we hear a lot about the importance It’s lazy and dangerous to simply quote facts. Customers of customer experience and how it affects repeat can get facts from the internet. business and reviews. It’s been about 52 years since my dad took me to my first baseball game at Connie Mack Stadium in Philadelphia. • Facts are transactional. I remember when I first saw the grass under the lights • Feelings are relational. during batting practice, it was vibrant. Today and every ball game since, I get emotional at the first glimpse of the • Focus is essential. grass. I miss my dad, but I’m very thankful. The true professional sales person focuses on both facts Feelings are powerful things; facts, not so much. and feelings, with the emphasis on feelings. Why? Because Focus on feelings supported by facts. ■ feelings matter more than facts. As we have discussed in past articles, making a buying decision is driven by emotion, Wayne Williams is president of ExSell Marketing Inc., a feelings. The numbers or facts simply support the sale, “counter intelligence” firm based in La Habra, Calif. He can and feelings make the sale. be reached at exsellmkting@gmail.com.

It’s lazy and dangerous to simply quote facts. Customers can get facts from the internet.

MTD May 2017

European notebook

Bridgestone in Europe! Building on continued success

s I am sure all MTD readers can apprecimarket and by the end of 2017 we confidently ate, Europe is currently in the grip of a expect one million DriveGuard tires to be on number of significant business trading the road throughout Europe. DriveGuard can changes including a fluctuating economy and the go 50 miles at speeds up to 50 miles an hour to very real prospect of the UK market eventually travel somewhere to get a damaged tire changed. leaving the European Union. They also handle much better than conventional Obviously in such an unpredictable playing run-flats and have been a tremendous success field, the tire industry throughout Europe has to for Bridgestone with slightly different concepts be affected. But the question is: Just how much being available in Europe and North America.” is this uncertainty interfering with tire sales By John Stone Rønsholt also pointed out that there had been performance? To find out, I recently accepted an several other significant successes including the invitation to meet with Jake Rønsholt, managing director popularity of the Dueler range plus the new “multi-season” of Bridgestone Europe’s Consumer Business Unit (BSEU), range from Firestone. He added, “We also launched the in Zaventem, just outside Brussels, Belgium. new tire in the popular Firestone Roadhawk range which I arrived for an intensive and very open discussion with has significantly increased in overall standard but remained Rønsholt, armed with a number of specific searching at the same competitive price level.” questions which would help us understand how one of the major tire manufacturers in Europe views the current You have mentioned Firestone, which as we know market situation and the company’s plans for the future. made an extensive comeback in Europe last year. So what are your plans for the brand this year, not just in First of all, I asked Europe but on a global basis and in particular in the U.S.? Rønsholt to give me a brief “Although viewed as our second brand in the group, I account of how Bridgestone want to make it quite clear that Firestone is an extremely Europe had performed in important part of Bridgestone’s product portfolio and we terms of sales in 2016 and if will continue to heavily promote the range in the coming the company had considered year. With sales of the brand increasing, Firestone will now it to be a positive period. become an essential part of our presentation at tire and He pointed out that in total automotive shows around Europe. the European tire market had “On a worldwide basis, which includes North America, grown by 2% (despite some we will be looking to incorporate a very competitive turmoil) and the OEM market marketing package. In Europe this will be centered around had also increased by 3%. Jake our dynamic and entertaining ‘Firestone Music Tour.’ The added, “So overall it was a brand is also building a strong presence in social media. This positive growth trend for the supports our belief that this new communication channel future, and at BSEU we shared is beginning to have an impact on Bridgestone tire sales.” in this success and also gained some market share. What technological advances has BSEU made in the “Our aim, as usual, was to past 12 months on tire building and design development? produce packages that satisfy “Well, obviously, DriveGuard can be considered one of the end consumer and several our greatest advancements in what is a constant project projects we had been working that we are always exploring for improvement in safety and on since 2015 were success- performance — particularly in compound mixing and every Bridgestone’s Jake Rønsholt. fully accomplished.” aspect of the tire building process. Is there a revolution growing with regards to tire-building? No, not yet, but as they say So what would you consider to have been your top ‘watch this space’ as our Global Research and Development performing tire sales range last year? teams are constantly working on new directions and ideas. Rønsholt said, “Without a doubt the launch of our So who knows what will emerge in the future? revolutionary new run-flat tire DriveGuard, which basically “For RFT (run-flat technology), we believe we are at can be fitted to almost any vehicle with a tire pressure least on par or possibly ahead in this market and I would monitoring system (TPMS) and is not ‘vehicle specific’ say that our objective is to always continue to increase as they used to be. This product, which we regard as our knowledge of the tire industry and react to emerging offering a new level of safety, is an important first in the requirements and expectations.”

MTD May 2017

European notebook What percentage of consumer tire sales is currently generated online and how big do you think this buying avenue will become in the future and over what time line? “Our online activity keeps growing and online is a welcome source of information for future sales with the help and enthusiasm of our tire dealer network in Europe. It is good that drivers can pre-inform themselves about what tires are available before going to a dealer. After all, it has been stated that up to 80% of potential customers will look online before buying tires. Of course e-commerce is yet another important issue. This is centered around being able to actually shop online which in Europe in some markets is currently running at up to 15% of tire business and the prediction is that this could possibly reach as much as 25% in the early 2020s.”

In your opinion, what role will tires play in the future concerning the growing emergence of hybrid, electric and other alternative energy sourced vehicles? Also, do you feel there will be a need to eventually make a change in the overall design of tires for autonomous vehicles? “Most definitely there will eventually be a need to adjust tire design in order to accommodate autonomous vehicles, and at the moment it is interesting to see where this new concept will go. The biggest challenge on autonomy is the range — just how far can they go? Fuel- and hybrid-driven cars have to be topped-up, but with self-drive cars it is an unknown direction when it comes to distance and performance. “The one issue that immediately comes to mind is rolling resistance as tires generate friction for safety and to remain on the road so the higher the friction the less the range will be. In my opinion, it feels as though the car industry is expecting us (the tire industry) to significantly contribute toward designing tires that will be safe and also reach the highest level of autonomy possible. So without doubt future tire design will be extremely important and Bridgestone fully intends to be at the forefront of any innovative development.”

Can you explain just how important tire shows in Europe, such as the Reifen Show (Germany), Autopromotec (Italy) and the Geneva Motor Show (Switzerland), are to Bridgestone’s marketing and sales strategy? Rønsholt stated, “They are extremely important and we are (and will continue to be) a regular exhibitor at all these shows and other relevant events as they are still one of the most crucial ways of professionally presenting our products and services throughout Europe. They also allow us to meet up with our customers and listen to their opinions and needs for the future.” Does Bridgestone Europe have any company-owned tire sales outlets (chains) in Europe? “Yes, we do, and our First Stop business has been firmly established throughout Europe for a number of years now. At the same time, our two most recent acquisitions were in France. However, it is not just about ownership as we also concentrate on continually building solid business partnerships such as our current joint retail venture in Germany.”

Does Bridgestone Europe work in close harmony with its team in North America?

The Bridgestone Europe headquarters in Zaventem.

Rønsholt said, “Absolutely, and we pride ourselves in having a successful working partnership with our American headquarters and, in fact, the degree of direct collaboration has increased significantly during the past few years. Ideally Bridgestone wants to be known as a truly global corporation and although we are not yet present in all countries, we work together with partners to provide a high level of tire service in every country and continent. “We also have established Global Brand Committees that work together to determine the way forward together as we fully appreciate that in different parts of the world there are different people and capabilities, so we run a series of projects concentrating on individual schemes and initiatives.” With Bridgestone having a strong brand reputation in the UK, what is your opinion on Brexit and so far has there been any significant rise or fall in tire sales in the UK? “At the moment nobody really knows what is going to happen, but so far we have not experienced any significant change. Obviously the monetary exchange rate is very important for our pricing, but overall it remains business as usual. Who knows what will happen if the UK does leave Europe, but I feel that it will work out OK. It is another market and we have a great team in the UK, so I am confident Bridgestone will not be affected.”

Finally, can you give an overview of your sales and marketing strategy for 2017? “Quite simply we are now concentrating very hard in our role as a Worldwide Olympic Partner which obviously is our main marketing objective at the moment. In the past we may have had many ‘scattered initiatives,’ but now are focused on just two — the Olympic Partnership and the Firestone Music Tour.”

Quite a few searching questions that were met with honest, informative answers, and when it comes to Europe, Bridgestone certainly appears to have its “finger on the pulse.” ■

John Stone has been working within the global tire industry for the past 26 years. In 2004 he launched his own consulting company, Sapphire Media Services, which caters to business media clients around the globe. Stone also writes for tire and automotive-related publications in Europe, South Africa and Asia.

MTD May 2017

Business insight

Using return on sales measurement to guide purchases Powerful business tool aids in decision-making process

et’s look at two hypothetical tire and service Why such a difference? Using return on sales stores, in the same town, a few miles from shows us what the minimum increase in sales is each other. Both stores do about $1.2 milneeded to not make the store worse financially. lion in sales with about a third of their business in If the red light store were to hire the new salestires, the rest in service. Both see business is up person, even with improving sales, it would lose and getting even better. It’s time to hire another profit by the end of the year. What should they salesperson. My advice to one of the owners is, do then? It would be OK if they had a plan to “Go ahead, you need the extra help,” to which he specifically increase net profits, outside of the thanks me for my expert opinion. To the other plan of increasing sales. If the business focused owner, I say, “It will make you lose money,” and By Dennis McCarron on getting from 3% net profit to 8% or 10%, the he quickly tells me how wrong I am. business then could afford the added expense. Why would one store get the green light and the other This exercise is useful when determining the purchase a bright red one? Return on sales. Return on sales is the of new equipment. Say the business is looking for a new measurement of profitability on the stuff a business sells. balancer. Road force or regular? Well, let’s look at those Mathematically it is net profit divided by total sales. stores again. Green light store, at 8%, needs to generate $100,000 in additional wheel balance revenue to buy an $8,000 road force balancer ($8,000/.08). The other store? $8,000/.03 is $266,000. Looks like they need to get the standard balancer. Or they could wait, improve profits, and then get the more expensive one. As a side note, but very importantly, this exercise should never be used in determining purchases when employee safety or bringing a business up to code. Nothing is more In the store that was given the green light, there is important than the safety of your employees. $100,000 in net profit. That is an 8% return on sales. When We can also look at this from an expense perspective. a business is deciding if it should purchase something (a Let’s say your salesperson “borrowed” a stamp from the machine, an addition to its labor force, or another expense) office to mail out an overdue personal bill. He was in a a good guide is to divide the cost of said thing by the return jam, it had to get out today or he’d have to pay another on sales. In this instance, let’s say a new salesperson costs fine. And his credit would take a huge hit! $50,000 a year in gross payroll. If you take the $50,000 and Let’s do the math on what additional sales are needed to divide by 8% (.08), you get $625,000, which is what that offset that stamp. I’ll wait while you do the math. Yup, our salesperson needs to sell in addition to the existing $1.2 green light store needs to sell $6.13 worth of additional million. That’s a tall order, but it’s in the realm of possible. goods and services to offset that “borrowed” stamp. Red light store needs to sell $16. I’m not saying a total ban in office supplies is in order or if an employee honestly forgets to pay for a stamp you should salt their land, burn down their home and tarnish Cos t Sal s their family name for centuries. What I am saying is that = Just at on turn on Sal s return on sales is a powerful tool in business that can help guide good decision making processes instead of relying on a “gut-feeling.” This is another reason to strive for 10% Let’s look at the store that was given the red light. Its net net profit annually. ■ profit was $40,000 — 3% of total sales, which is common in the industry. If we take the same salesperson payroll, Dennis McCarron is executive director of Dealer Strategic $50,000, and now divide by 3% (.03) we get $1.66 million Planning Inc., a company that manages multiple tire dealer needed in increased sales just to keep net profit the same 20 Groups in the U.S. (www.dsp-20group.com). To contact (break even). That’s a very scary difference. McCarron, email him at dennis@dsp-20group.com.

r turn = N on Sal s otal Sal s

MTD May 2017

Focus on industry

Apollo opens tire plant in Hungary, looks for growth in the U.S. By Greg Smith

he opening of Apollo Tyres Ltd.’s new $500 million consumer and commercial tire plant outside of Budapest, Hungary, last month was a huge global event. Said to be the largest investment by an Indian-based company in Hungary, the grand opening drew a visit from Hungary’s Prime Minister Viktor Orban. There were 1,400 people at the opening, plus 16,000 employees of Apollo watching worldwide. Modern Tire Dealer was among the various media also represented at the event. This is Apollo’s first greenfield plant outside of India, and a further indication of Apollo’s commitment to growing its presence in Europe. During its 2015-2016 financial year, Apollo reported annual worldwide sales of $1.8 billion. “With this inauguration today of our Hungary greenfield facility, we have crossed another milestone in our global growth journey,” said Onkar Kanwar, Apollo Tyres Ltd. chairman. “This facility will help us further increase our presence and market share in Europe. “From being a replacement marketChairman and Managing Director Neeraj Kanwar (left), Hungary Prime Minister Viktor Orban focused company Vice and Chairman Onkar Kanwar celebrate the opening of the Apollo Tyres Ltd. plant in Budapest. in Europe, we will soon be starting supplies of our selling to premium car makers with its Vredestein brand. tires to all the leading OEs in The facility is the company’s second plant in Europe. It is in Europe.” addition to Apollo’s existing plant in the Netherlands, and will Neeraj Kanwar, vice chair- produce both Apollo and Vredestein tires. The highly automated man and managing director plant features IT-driven systems and robotics. The final capacity of Apollo, made it clear of the plant at the end of Phase I will be 5.5 million passenger during a press conference and light truck tires and 675,000 truck tires. About 500 people that the new factory will will work at the facility when fully operational. be an OE plant and that It took two years and 7,000 workers to construct the plant, the company wants the which is located on 178 acres. The facility itself takes up 37 acres, plant’s production to with a “green area” accounting for 42 acres. eventually be 25% OE The inauguration also marks Apollo’s 40th anniversary for the tires versus replacement manufacturing and selling of tires. Apollo originally produced bias tires. He further added that truck tires, and slowly ventured into consumer tire production, the company expects to be then radial truck and bus tire manufacturing.

MTD May 2017

Apollo also has four tire plants in India. Its largest plant is near Chennai, in the southern India state of Tamil Nadu. Two other plants are located in the southern India rubber-producing state of Kerala, and the fourth is in Limda, Gujarat. These four have a combined production capacity of 1,450 tons a day.

Apollo Chairman Onkar Kanwar, second from left, tours the new $500 million tire manufacturing facility, which took two years to build.

The Enschede plant in the Netherlands adds another 195 tons a day, taking current capacity to around 1,650 metric tons a day. Last year, the company signed a Memorandum of Understanding to set up a state-of-the-art tire manufacturing facility on the southeastern coast of India. Neeraj Kanwar said during the grand opening ceremonies that the company can produce 25 million tires worldwide per year. Three other global tire manufacturers have tire plants in Hungary: Hankook Tire Co. Ltd., Bridgestone Corp. and Groupe Michelin. ■

Apollo’s consumer and commercial tire plant in Budapest, Hungary, its second in Europe and sixth worldwide, is located on 178 acres.

www.moderntiredealer.com

Apollo turns its focus on the U.S. market Now that its plant in Hungary has begun production, Neeraj Kanwar, vice chairman and managing director for Apollo Tyres Ltd., said the company is turning its focus to the U.S. market. “Our long-term plans include entering the U.S. market,” he said. In order to do that, the company must have the right products and the right distribution network set up. He pointed to the hiring of Steven Smidlein as senior vice president for Apollo Vredestein Tyres North America Inc. slightly more than a year ago as one of the steps the company has taken toward that end. “The emphasis is on building the market and our brand,” said Kanwar. Right now, Kanwar said the company has 5% of the products that the U.S. market needs and he wants to increase that number to 70% in two years. Kanwar wants to establish a small R&D center in the U.S. that will coordinate its work with the company’s European center in the Netherlands. This would give the company four total R&D centers worldwide. Kanwar acknowledged that he got his “hands burnt” in his company’s ill-fated purchase of Cooper Tire in 2013 as a way of entering the U.S. market. Although he doesn’t rule out a non-organic approach, he said that there is nothing on the table at this point. The company wants to have 10% of its total sales coming from the U.S. and Canada in five years, said Kanwar. He also stated that the company could look to build a plant in four to five years in the U.S. Currently, the company has been selling passenger, light truck and farm tires in the U.S. under its Vredestein brand along with a mixture of OHT (off-highwaytires) under both the Vredestein and Apollo brands. The Apollo brands are primarily industrial tires, according to the company. To date, the company has not sold truck tires in the U.S. Moving forward, Smidlein says the company will be emphasizing its Vredestein brand for passenger tires in the U.S. and Canada, but is undecided at this point regarding which brand its light truck tires will carry. He also told MTD that since Apollo has the highest market share for truck tires in India, the company will probably be looking at using the Apollo label for its truck tire line when those tires are brought into the country. Apollo currently has 10 employees in the U.S., with five of those positions in the field.

Apollo Tyres Ltd. Chairman Onkar Kanwar (center) is flanked by his son, Neeraj Kanwar, vice chairman and managing director (right), and Steven Smidlein, senior vice president for Apollo Vredestein Tyres North America Inc., at the inauguration of the Apollo Tyres plant in Hungary.

Focus on industry

Show organizer to ‘rethink’ the NATRE

ast month, the North American Tire & Retread Expo (NATRE) was held in New Orleans. While the trade show was small in size, the event did feature a number of solid seminars by industry experts. Unfortunately, the attendance was not at the level that show organizers had hoped. In fact, the trade show and attendance was much smaller than in previous years. “In our quest to create the NATRE as a stand-alone tire conference for tire dealers, retreaders and the tire industry, we have not seen the support from attendees, tire manufacturers and suppliers that we had hoped for,” says Gus Lima, CEO of the Latin Expo Group, the expo’s organizer. “As a result we have decided not to proceed with the show in its current format.” Lima says he still has a vision for an event in the

future and plans to rethink how to best achieve that goal. The NATRE was launched in 2014 as the only national tire trade show and conference dedicated to tire dealers, retreaders and the tire industry, says Lima. “We wish to thank all the companies and industry professionals who have supported the show these past three years and hope to see all of you in the future,” adds Lima. ■

Speakers at the North American Tire & Retread Expo included (top left to bottom right): John Rice, director of TPMS products, 31 Inc.; Josepch Saoud, president, U.S. and Canada, TBR, Bridgestone Americas Tire Operations; John Zentz, vice president of sales, Hunter Engineering Co.; and Clif Armstrong, president, TP Commercial Solutions LLC.

MTD May 2017

Focus on industry

Online marketing strategy Continental has one goal: to drive consumers to its dealers By Bob Ulrich

n the last 10 years, Continental Tire the Americas LLC has increased its consumer tire market share dramatically. The result is tangible: Nearly 6 million more Continental and General tires were sold in the U.S. last year than in 2006. Continental’s Elite Gold dealers had a lot to do with that growth. And on the 2017 Continental Tire Gold Dealer Cruise, company executives thanked them in the best way possible. They gave them the tools to sell even more tires. “Everything we’re doing... is all about driving the consumers to (our) websites so they can come find you,” said Director of Marketing Travis Roffler. First, consumers are directed to either Continentaltire.com or Generaltire. com with help from the company’s sponsorships and promotional activities. Ultimately, they are taken to each website’s dealer locator page. “We want to drive them to your store, so they can buy tires at your facility,” said Roffler.

avid fans of college basketball.” That’s close to 75 million people. Continental also benefited from television commercials featuring NBC sports talk show host Dan Patrick as a spokesperson, and will do more with Patrick in 2017-2018. 2. Soccer. Continental is the official tire of the U.S. men’s and women’s soccer teams and Major League Soccer (MLS), and Roffler said the agreement has been renewed through 2022. That will take Continental through the 2019 FIFA (Fédération Internationale de Football Association) Women’s World Cup, and 2018 and 2022 Men’s World Cups. Activation cities for 2017 are Atlanta, Chicago, Houston, Los Angeles, Minnesota, New York (Red Bulls), Orlando, Philadelphia and Seattle.

Sports marketing More than 300 Elite Gold dealers plus 12 Gold distributors listened to what Roffler and National Sales Manager Sean McDermaid had to say about the company’s marketing strategy and the Gold program. Roffler highlighted the company’s sports and motorsports sponsorships. 1. NCAA men’s basketball. During the 2015-2016 college basketball season, “I know there are a lot of Duke fans out there!” Marketing Director Travis Roffler to attendees Continental partnered with 28 schools said at the Gold Dealer meeting. Because individual in the Big 10, Big East, Big 12, SEC, teams are polarizing, Continental chose Dan ACC, Pac 12 and AAC (University Patrick as a spokesperson for its NCAA men’s of Connecticut) “in geographic areas college basketball television commercials. that make sense to you.” The schools, including eventual champion Villanova, all have a “propensity for their programs to be put on national Continental will get more impressions as the MLS expands television.” The Continental name was on courtside signage in from 22 teams this year to a planned 28 teams. Roffler said four all 28 arenas. The company also leveraged its sponsorships with of the cities vying to join the MLS include Charlotte, Tampa/ 31 activation dates, which engaged 4,700 fans. St. Petersburg and St. Louis. Nearly 7 billion impressions were generated by the sponsorThe Continental brand received 3.1 billion impressions from ships, said Roffler. U.S. soccer and more than 5.8 billion from the MLS last year. Continental partnered with four additional universities during Continental promoted its participation in the MLS with TV comthe 2016-2017 season: Michigan State, Virginia, Florida State mercials featuring former professional soccer player Alexi Lalas. and the University of Miami in Florida. Local tire dealers were 3. Motorsports. Continental is the official tire of the Interable to participate in close to 40 activation dates. national Motor Sports Association (IMSA), while General is The company is looking at adding teams for the upcoming season. the official tire of the Lucas Oil Off-Road Racing Series (and Roffler said 23% of the people in the U.S. “consider themselves the Lucas Oil Chili Bowl Nationals in 2018). Once again, the

Le Mans Prototype 3, Prototype Challenge and GT Daytona classes in the IMSA WeatherTech SportsCar Championship will run exclusively on Continental tires in 2017. So will a new class: the IMSA Prototype Challenge presented by Mazda. IMSA generated nearly 850 million impressions last season, said Roffler. In stock car racing, General is the official tire and lone supplier of the Automobile Racing Club of America (ARCA) racing series. Continental will leverage the brand at seven ARCA races this year, including Pocono June 9 and July 28. Roffler said the Hoosier brand will make its presence felt “in the motorsports arena going forward.” Continental purchased Hoosier Racing Tire Corp. in October 2016.

The company, which sponsors a number of anglers in Major League Fishing (MLF), will be the title sponsor of the new MLF General Tire World Championship, presented by Bass Pro Shops. The six days of competition will be broadcast on CBS and the CBS Sports Network beginning June 24. “It’s going to be the next level of fishing,” said Roffler. “This is like the NFL meets fishing.” Lori Seggio, left, and Tracey Herrlich from Crown Tire Co. in Port Monmouth, N.J., compete in Conti-Bingo. American Tire Distributors Inc. is Crown Tire’s Gold distributor.

Rocco Delaval, the grandson of Bud and Claudia Luppino, attempts to master Royal Caribbean’s FlowRider surf simulator. The Luppinos own Bud’s Tire Pros, a three-store dealership based in Riverside, Calif.

Program enhancements “We’re going to add an additional $4 million to your program in 2017,” McDermaid told attendees. It was one of the changes made “to reward and hopefully assure your loyalty in the future.” Last year, a Gold dealer purchasing 3,000 units would have received a $12,000 volume bonus ($4 per tire). By increasing that to 3,500 this year, the volume bonus will be $24,500. Here’s how it works. Tiers Units Reward

Bronze 800-1,999 $4

Silver 2,000-3,499 $5

Gold 3,500+ $7

The Engage 360.com online product and sales training also has evolved. Training is now completely mobile, said McDermaid. Employees will have the opportunity to train whenever and wherever it is convenient for them.

Three new tires Fresh off the launch of the Continental ExtremeContact Sport in February, Continental introduced three General tires to its Elite Gold dealers. The Grabber HD, the company’s first entry in the all-season heavy-duty tire for the commercial segment, features DuraGen construction technology plus a sidewall curb guard. It has “confident traction, especially when you are off the pavement,” said Product Manager Bob Liu. It is available in eight LT sizes and three euro-metric van sizes, and is backed by a 45-day trial period. Its main competitor is the Firestone Transforce HT. The G-Max AS-05 UHP all-season tire will replace the AS-03 in May. It features an asymmetric tread pattern — a direct result of dealer feedback — and a 50,000-mile limited tread wear warranty. In addition, Continental’s Visual Alignment Indicators and Replacement Tire Monitor alert drivers when to check alignment or replace the tire. Roffler said the new G-Max AS-05 is a perfect example of how the company focuses on balance rather than compromise when designing tires. “We’re not willing to sell our soul to gain in one category and give up someplace else.” It will be launched in 54 sizes that cover more than 90% of its market. Competitors include the BFG g-Force Comp-2 A/S, Hankook Ventus S1 Noble2, Cooper Zeon RS3-G1, Falken Ziex ZE950 A/S and Goodyear Eagle Sport A/S. The studdable Altimax Arctic12 not only has superior snow and ice traction versus the tire it will replace, the Altimax Arctic, but The studdable Altimax Arctic12 also 18% more mileage, is the third member of the said Liu. Designed for General winter tire “power cars, mini-vans, CUVs family.” It will be available in 47 T-rated XL sizes in July, in time and compact SUVs, it for the 2017-18 winter season. completes the General winter tire “power family,” which includes the Grabber Arctic (large SUVs and pickup trucks) and Grabber Arctic LT (work trucks). ■

Focus on industry Continental proves its tires at Uvalde Continental Tire the Americas LLC invited customers to its Uvalde Proving Grounds to experience the new G-Max AS-05 and Grabber HD tires. Guests spent a day at the 5,000-acre facility in Texas for ontrack demonstrations of the new tires as well as other General and Continental products. The “drive-and-learn” program ran for six weeks in April and May 2017. The General G-Max AS-05 ultra-high performance tire is replacing the G-Max AS-03. Bjoern Glaeser, technical product specialist, says the new tire offers improved mileage along with better grip on wet and dry surfaces versus the old model. In addition, the G-Max AS-05’s Drivers compared steering response, lateral grip and handling behavior of the General G-Max AS-05 and Continental ExtremeContact Sport against competitor tires on the dry handling course.

asymmetric tread pattern allows normal tire rotations to promote even wear and extend tread life. “Directional patterns tend to get noisier as they wear, due to limited ability of tire rotations. The new G-Max AS-05 asymmetric design addresses this concern,” says Glaeser. The General Grabber HD is a heavy-duty all-season tire for commercial light trucks and vans. Doug Martin, product The G-Max AS-05 was tested in manager, says the Grabber HD will appeal to small fleets. both wet and dry conditions in “We feel the Grabber HD is a good strategic tire that our the test track’s vehicle dynamics area. The G-Max AS-05 is a passenger light truck tire reps will be able to sell as well “true all-season UHP tire that as our commercial field sales reps. The Grabber HD fills has very good snow perfora hole for customers that have commercial fleets and run mance,” according to Continenfleet service vehicles.” — Ann Neal tal’s Bjoern Glaeser.

The Grabber HD is Continental’s first tire for the commercial light truck segment. It is a replacement tire for commercial vans such as the Chevrolet Express and Ford Transit. (From left to right): Doug Martin, product manager; Bjoern Glaeser, technical product specialist; and John Robinson, senior communications specialist, answered questions from Continental customers testing the new G-Max AS-05 and Grabber HD tires at the company’s Uvalde Proving Grounds.

MTD May 2017

Focus on industry

Image-conscious North Carolina tire dealers discuss how to counter stereotypes By Bob Ulrich

elp is a land mine.” “I can’t find employees.” “Quality of life is our biggest concern.” When dealers gather to talk about issues important to them, the topics are always wide-ranging. But for Chris Monroe, Alpio Barbara, Gary Baldree and Frankie Pugh, a successful business starts with creating and nurturing a

reputable image. That includes doing the job right the first time. At the 2017 North Carolina Tire Dealers Association Expo and Trade Show in Raleigh, N.C., in March, the four dealers shared a panel and discussed their views with the dealers in the audience. “As an independent tire dealer... we’ve had a lot of discussion about our image: building our brand and being professional and being perceived as the professionals that we are,” said Monroe, owner of Monroe Tire and Service in Shelby, N.C.

Right: “We look at the tire industry over the next few years as being relatively flat in the replacement market,” said keynote speaker Stuart Schuette, CEO of American Tire Distributors Inc. “But we’re blessed to be in this industry…. People need tires. We’re in a space where the need is there, and we just have to figure out... where the consumer is going so we can all win.” Above: Tim Evans, owner of Evans Tire & Automotive Center Inc. in Smithfield, N.C., won the Coats 70X EH3 tire changer. Right: MTD Editor Bob Ulrich moderates the NCTDA’s “How to Greatly Improve Your Business Model” panel discussion. Mike and Dana Kelly of North Elkin Tire & Automotive in Elkin, N.C., check out a Kenda tire at the Parrish Tire Co. booth during the NCTDA Trade Show.

l na o i t d se o . u rom A c n p S . I a ET Co s as e N re d Ti ar th W bo ring w. K& ate du ho sk ol e S to ad Tr

MTD May 2017

“To attract the next generation to work in this industry, I think we have to make it desirable and that’s in training, how we treat ourselves, how we treat our customers and, honestly, in the facilities that we use to represent the industry.” Barbara, owner and president of Redwood General Tire Service Co. in Redwood City, Calif., and Modern Tire Dealer’s 2016 Tire Dealer of the Year, agreed with Monroe 100%. He noted that all his employees are required to wear uniforms. “In my store, if you wear a hat backwards or you have tattoos, either your head’s going to turn around or your hat is going to turn around, and you’re going to cover your tattoos,” he said. “It’s an image thing for us, and our customers love it. You’ve got to make the customers comfortable to come into your store.”

To make sure his employees provide “the best service and best quality work,” Baldree, president of Baldree’s Tire Pros in Havelock, N.C., has put into place procedures to provide checks and balances without running cars through the shop too quickly. “I worry about making sure the work is done right,” he said. “The biggest fear of a tire dealer is the wheel will come off.” Pugh, general manager of distribution for Pugh’s Tire & Service Centers, a six-store chain based in Greenville, N.C., said dealers have to work harder to overcome stereotypes, some deserved, some undeserved. “I think communication from the front is the most important thing to the customer. Letting them know how and what you are going to do to the vehicle is very important.” ■

Clockwise from far left: Ron Pisciotta Sr., Bob Katz (with glove) and Micky Labonte (standing in for her late father, Lionel Labonte) received 2017 NETSA Hall of Fame Awards from President Tony DeSimone.

Online tire sales

Being off-line is not an option, says Steinberg At the recent New England Tire & Service Association Trade Show in Mashantucket, Conn., Modern Tire Dealer’s first Tire Dealer of the Year, Barry Steinberg, led a discussion on “Competing Against Internet-Based Tire Sales.” Here are his principal takeaways. 1. Online pricing is a must. 2. Be aware of online pricing from competitors. 3. You must be involved in social media. 4. Create an internal system to match online pricing plus services. “Even your best clients shop online for info and price,” said Steinberg, owner of Direct Tire & Auto Service, a six-store chain based in Watertown, Mass. “They want to buy local, so give them a reason to.”

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Barry Steinberg, right, owner of Direct Tire & Auto Service in Watertown, Mass., talks with Bruce Jergensen, DC manager for Nokian Tyres Inc., about the new Hakkapeliitta 9 SUV winter tire at the NETSA Trade Show.

Focus on dealers

Big O Tires grows sales and adds stores By Ann Neal

online. It would be tough as an independent dealer to do this on your own. Digital marketing is one of the great benefits of being with Big O Tires.” The event included presentation of Standing “O” awards to franchisees and

ig O Tires LLC franchisees celebrated growth in all business metrics and recognized the first store to surpass $7 million in sales at their annual convention April 4-5, 2017, in San Diego, Calif. The TBC Corp. subsidiary says same-store total retail, service Big O Tires unveiled the Big Foot X/T, a premium on-, offand tire unit sales as well as car count grew year-over-year road commercial traction tire in 2016. Franchisees also had significant total sales growth, with a durable 2-ply carcass according to Kim McBee, design that resists cutting vice president of marketing and chipping. The zigzag and advertising. Sales were center groove design allows the X/T to dig through soft led by the Big O Tires store surfaces and provides a comin Dublin, Calif., which fortable highway ride. became the first member of the “$7 Million Dollar Club” in 2016. The Dublin store is one of six Big O Tires stores in Northern California owned by Bruce Cherry. “Hitting a sales level we’ve never reached before was so exciting for us,” says McBee. “The Dublin store has always been a top performer. This Jared Edwards won a prize for owning the only store (in year, they focused on service Sandy, Utah) to reach $6 million in annual sales. Pictured sales, alignment sales and (from left) are Rick O’Neil, district vice president west; Jim A Big O Tires store in Ohio fleet sales. They say at the Bull, district vice president east; Jared Edwards; and John opened in January 2017 in Hamilton, near Cincinnati. end of the day it’s just doing Kairys, executive vice president and general manager. the Big O Tires process and holding their team accountable.” corporate associates for going “above and beyond.” This year’s recipients are Matthew Two new states Greco, co-owner of 23 stores in California and Colorado; Mitch Big O Tires added 19 stores in 2016 and began 2017 by Beranek, co-owner of 10 stores across Colorado and New opening locations in Ohio and Tennessee. The newest stores, Mexico; Rodger Anderson, real estate development manager which expand the Big O Tires footprint to 21 states, are owned at TBC Corp.; Darrell Jackson, field training manager at TBC by new franchisees. Nick Benge, president of Big OKI LLC, Corp.; and Ferdie Brown, franchise business consultant for opened a store in Hamilton, Ohio, in January 2017. Also in Big O Tires’ East Division. January, Benge opened two stores in Kentucky, in the cities The Point of Light award went to Tony Williams for conof Georgetown and Lexington. tributing his knowledge, expertise, and dedication. Williams In Tennessee, the Tun Tavern Group opened stores in is a member of the Franchise Advisory Council and a leader Knoxville and Farragut in March and in Murfreesboro in April. in his local dealer group. With his partners, he owns seven The franchise group is owned by Tom Coke, Joe Eltringham stores in the Phoenix, Ariz., market. and Derrick Martin. Jerry Tidwell, store owner in Phoenix, Ariz.; Jeff Schwab, multi-store store owner in Iowa and Nebraska; and Bruce Focus on digital marketing Cherry received Franchisee of the Year awards. Big O Tires is investing in digital marketing with a focus on Kevin Kormondy was inducted into the hall of fame. He keyword search, according to McBee. “We’re shifting dollars joined Big O Tires in 1981 and retired in 2016 as executive to where shoppers are.” She says it’s an art and a science to vice president and chief operating officer. ensure Big O Tires shows up in website searches. Big O Tires has 398 franchisee-owned and two company“It’s a focus for us to make sure we’re aware of where the owned stores primarily located in the western and midwestern tire shopper is. Those are the people raising their hands and United States. It also distributes tires and other automotive saying, ‘I’m in market.’ We want to be there when they search service products to associate dealers in western Canada. ■

MTD May 2017

TPMS

Acura ILX, MDX, RDX, RLX, TL, TLX, TSX and ZDX – 2007-16 Vehicles’ systems have 7 TPMS indicators SUBJECT VEHICLES: Acura models covered and model year(s): ILX 2016, MDX 2007-16, RDX 2007-16, RLX 201416, TL 2009-14, TLX 2015-16, TSX 2009-14, ZDX 2010-13. RELEARN PROCEDURE? Yes. SPECIAL TOOLS NEEDED? The Honda Diagnostic System (HDS) or an OBD-II compatible scan tool.

ith the Acura models listed, whenever the engine is running, the tire pressure monitoring system (TPMS) control unit continuously monitors all four tires and the system. The system has seven indicators: four tire indicators, a low pressure indicator, a message indicator and a TPMS indicator. If the TPMS control unit detects pressure below the lower limit, it alerts the driver by turning on the low pressure indicator, turning on the appropriate tire(s) indicator on the multi-information display as well as the message indicator, and setting a diagnostic trouble code (DTC) in the control unit. When the tire pressure is increased to normal the control unit will turn off the indicators and store the DTC(s). When two or more tire pressures are low, the low pressure indicator comes on about five seconds before the appropriate tire indicator. Once low pressure is detected, the system scans all four pressure sensors to ensure that it turns on the correct tire indicator. If a problem is detected in the system, the TPMS indicator will come on. If low tire pressure and a problem in the system are detected, only the TPMS indicator comes on. When the system detects a problem, the TPMS control unit sets a code, but shifts to fail-safe mode, and does not alert the driver to low tire pressures. If the TPMS control

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Figure 1: Locating the TPMS mark on the wheel (typical).

unit loses power or fails, the TPMS indicator will come on, but no DTC will be set.

Tire pressure monitor warning indicators NOTE: If a flat tire is replaced with the spare tire, and the flat tire is stored in the cargo area, the low pressure indicator will stay on but the appropriate tire indicator will go off. This prevents the customer from thinking there is a problem with the spare tire. When the flat tire is taken out of the vehicle for repair, the warning light will come on because the system is no longer receiving the signal from the tire’s transmitter.

TPMS NOTE: If the temperature drops and then rises, tire pressure could decrease just enough to turn on the low pressure and tire(s) indicators, but later increase enough to turn them off. This can be an indication that tires pressures are near the minimum acceptable specification. NOTE: If the outside temperature is at or below – 40 degrees Fahrenheit (-40 degrees Celsius), the system may not function properly. If the TPMS control unit detects pressure below the lower limit, it turns on the low pressure indicator and the appropriate tire indicator(s) on the multi-information display, as well as the message indicator. When the tire pressure is increased to normal the control unit will turn off the indicators. When two or more tire pressures are low, the low pressure indicator comes on about five seconds before the appropriate tire indicator. If a problem is detected in the system, the TPMS indicator will come on. If low tire pressure and a problem in the system are detected, only the TPMS indicator comes on. When the system detects a problem, the TPMS control unit sets a code, but shifts to fail-safe mode, and does not alert the driver to low tire pressures. If the TPMS control unit loses power or fails, the TPMS indicator will come on. If low tire pressure indicator and multi-information display indicator(s) are lit continuously due to low pressure in one or more tires, adjust tire inflation to proper pressure as indicated on the tire and loading information placard. The light will remain on until tire pressure is properly set. If the warning light is still illuminated or the TPMS indicator is lit continuously, there is a problem in the TPMS. See appropriate manufacturer service information.

Reset procedures

When the tire pressure warning light illuminates and a warning message appears, immediately check air pressure of all tires and adjust to the specified pressure. Ensure that the warning indicators go out.

Tire pressure sensor registration NOTE: To ensure the control unit memorizes the correct ID, the vehicle with the new sensor must be at least 10 feet from any other TPMS tire pressure sensor not installed on that vehicle.

Memorizing sensor ID (automatically) 1) After rotating the tires or replacing a tire pressure sensor, drive the vehicle for at least 40 seconds at a speed of 15 mph (24 km/h) or more, and all the sensor ID(s) will be memorized automatically. 2) After the ID(s) are memorized, reduce the pressure in all four tires to less than the appropriate specification, and check to see that the four tire indicators come on.

Memorizing Sensor ID (Using HDS) 1) With the ignition switch in the OFF position, connect the HDS to the 16-pin data link connector (DLC) located under the left side of the dashboard. 2) Turn the ignition switch to ON position, and memorize the ID of the tire pressure sensor by following the screen prompts on the HDS. If all ID(s) are memorized properly, go to step 4. If the TPMS control unit fails to memorize one or more sensor ID(s) during the learning process, go to the next step. 3) If one or more ID(s) fail to learn, causing DTC(s) to set, the HDS will provide a procedure to fix this that involves raising the vehicle. To solve this problem much faster, perform the following:

NOTE: When a tire pressure sensor is replaced or tires are rotated, the sensor ID must be memorized by the TPMS control unit. See “Memorizing sensor ID (automatically).” If the TPMS control unit has also been replaced, the Honda Diagnostic System (HDS) or an OBD-II compatible scan tool must be used to program information into new TPMS control unit. See “Memorizing sensor ID (using HDS).” NOTE: Misalignment of the control unit and initiators could interfere with sending and receiving signals. Ensure the brackets on the TPMS control unit and front initiators are not bent.

4) After the ID(s) are memorized, reduce the pressure in all four tires to less than the appropriate specification, and check to see that the four tire indicators come on.

Figure 2: Removing the tire from the wheel (1 of 2).

Figure 3: Removing the tire from the wheel (2 of 2).

• Using HDS, clear all DTC(s). Using an assistant, start the learning process while driving the vehicle under 10 mph. • TPMS control units should now learn all four sensor ID(s). If the TPMS control unit is still having trouble learning ID(s), refer to appropriate service information.

MTD May 2017

Demounting/mounting procedures CAUTION: The tire should be demounted from the wheel using the tire changer manufacturer’s instructions. Use the following information to avoid damage during the demounting/mounting procedures. NOTE: When a tire pressure sensor is replaced or tires are rotated, the sensor ID must be memorized by the TPMS control unit. See “Reset procedures.” NOTE: Vehicles equipped Figure 4: Identifying valve stem Figure 5: Identifying the pressure sensor grommet. with TPMS must use wheels components of the TPMS system. made for the system, or the shown so the valve stem is 90 degrees from the bead system will not work. The original equipment wheels have breaker (see Figure 2). a “TPMS” mark on them, and a counterweight cast into the • DO NOT position the bead breaker of the tire changer too opposite side of the spoke to balance the weight of the sensor close to the rim. Position the wheel so the tire machine (see Figure 1). and tire iron are next to the valve stem, and will move away from it when the machine starts. Then remove the Tire pressure sensor tire from the wheel (see Figure 3). CAUTION: Fluid sealant used to repair a punctured tire can damage the tire pressure sensor mounted on each wheel. It 5) Remove the valve stem nut (A) and the washer (B), and can prevent the system from detecting the correct tire pressure then remove the tire pressure sensor with valve stem (C) from and set a DTC even though the system is normal. the wheel (see Figure 4). CAUTION: On some earlier models, valve stem nuts are made of aluminum. These caps can corrode and become difficult to remove, especially in areas of the country where road salt is commonly used in winter. Aluminum valve stem nuts should be replaced with plastic tire valve caps from the manufacturer (Acura Service Bulletin 05-045; Nov. 11, 2005). Removal 1) Raise the vehicle, and support it with safety stands in the proper locations. 2) Remove the wheel with faulty sensor. 3) Remove the tire valve cap and valve core, and let the tire deflate. 4) Remove any balance weights, and then remove the tire from the wheel with a commercially available tire changer. Note these items to avoid damaging the tire pressure sensor: • Do the outside of the wheel first. Position the wheel as

Figure 6: Installing the tire pressure sensor with a torque specification.

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TPMS NOTE: The valve stem grommet might stay in the wheel; make sure to remove it. 6) Remove and discard the valve stem grommet (A) from the tire pressure sensor (see Figure 5). Installation NOTE: Always use a new valve stem grommet whenever the tire pressure sensor has been removed from the wheel. 1) Before installing tire pressure sensor, clean the mating surfaces on the sensor and the wheel. 2) Install the tire pressure sensor (A) and the washer (B) to the wheel (C), and tighten the valve stem nut (D) finger tight. Make sure the pressure sensor is resting on the wheel (see Figure 6). CAUTION: Do not use air or electric impact tools to tighten a valve stem nut. 3) Tighten the valve stem nut to the specified torque while holding the tire pressure sensor. 4) Lube the tire bead, and position the wheel so the tire machine and tire iron are next to the valve stem and will move away from it when the machine starts. Then install the tire onto the wheel (see Figure 3). NOTE: Make sure the tire bead is seated on both sides of the rim uniformly. 5) Inflate the tire to 44 psi (300 kPa) to seat the tire bead to the rim, and then adjust the tire pressure to specification as indicated on the tire and loading information placard, and install the valve stem cap. 6) Check and adjust the wheel balance, then install the wheels

Torque specifications Component

Ft.-lbs. (N.m)

Wheel nut RDX .............................................................................79 (108) 2007-08 TL 79 (108) TSX ..............................................................................79 (108) All other models ....................................................94 (127) In.-lbs. (N.m)

Tire pressure sensor nut1 2013 RDX ..................................................................70 (8) All other models ....................................................35 (4) 1 – Do not use air or electric impact tools to tighten a valve stem nut. Tightening the nut beyond the specified torque can damage the nut. Make sure that there is no space between the sensor and the wheel.

to the vehicle. Remove the safety stands, and lower the vehicle. 7) Memorize the pressure sensor ID(s). See “Reset procedures.” ■

Information for this column comes from Mitchell 1’s “Tire Pressure Monitoring Systems Guide” for domestic and import vehicles. Headquartered in Poway, Calif., Mitchell 1 has provided quality repair information solutions to the automotive industry for more than 80 years. For more information, visit www.mitchell1.com. For archived TPMS articles, visit www.moderntiredealer.com.

MTD May 2017

Products Monroe custom counter stool is available for online purchase

New Firestone All Season fits cars, minivans and CUVs Bridgestone Americas Inc. says the new Firestone All Season is an affordable tire with all-season performance that covers more than 70% of the cars, minivans and crossovers on the road today. The Firestone All Season replaces the Firestone FR710. It features up to a 55,000-mile limited tread wear warranty on CUV sizes, and a 65,000-mile limited tread wear warranty on all other sizes. The tire is available in 25 sizes, with an additional 24 sizes coming online in August. Most of the sizes are T-rated, while the 205/50R16 and 235/45R18 are H-rated. BRIDGESTONE AMERICAS INC. www.firestonetire.com/tire/all-season

Autolite spark plug has iridium-enhanced finewire design The Autolite Iridium XP Enhanced Alloy Technology spark plug has an iridium-enhanced 0.6 mm finewire design and patented platinum sidewire technology. It delivers optimum performance and a more focused ignition for better overall ignitability, according to the company. The spark plug also provides the durability advantages of a double platinum spark plug with virtually no gap erosion, longer life, and top fuel efficiency over the life of the plug. Other features include a nickel-plated shell. Autolite, a division of Fram Group IP LLC, says it is the first spark plug manufacturer to offer a lifetime limited warranty. AUTOLITE www.autolite.com

Wix has new heavy-duty filters Wix Filters’ new heavy-duty air filters with NanoPro technology are designed to provide higher initial efficiency and a final efficiency of up to 99.99%. The NanoPro green media is easily recognized and the filters come with metal or poly end caps. The filters are ideally suited for on- and off-road applications, mines with fine or ultra-fine dust, construction sites and agricultural environments. Through a proprietary process, the NanoPro media features a unique fiber coating. Wix Filters is part of the Mann+Hummel Group. WIX FILTERS www.wixfilters.com

Tenneco Inc.’s limited-edition, customdesigned Monroe OESpectrum counter stool is now available for online purchase. Tenneco says the brand’s iconic Monroe black and yellow logo displayed on the counter stool makes it a great addition to service garages, parts stores, waiting rooms and more. The 30-inch tall stool offers comfort and style with a custom-printed 14inch seat and an attractive Z-shaped profile, custom-designed with two injection-molded Monroe OESpectrum shock absorbers for legs. Each stool is shipped unassembled with necessary hardware and easy-to-follow assembly instructions. TENNECO INC. www.monroe.com/en-US/monroe-counter-stools

Lisle heavy-duty impact gloves are designed for touch screens Lisle Corp.’s new heavy-duty impact gloves for service technicians feature a touchscreen design compatible for use with many smart phones, tablets and touch screen computers. The company says the gloves have a 3 mm gel palm padding to help absorb vibration from impact and power tools. Extra protection is molded on the glove back and fingers. The gloves have a hidden seam design and elastic cuff, with hook and loop fastener, for comfort. The gloves are available in three sizes: medium, large and extra-large. LISLE CORP. www.lislecorp.com

New Brake Parts rotors resist rust Brake Parts Inc. has added the RPT Rust Prevention Technology rotors line to its Raybestos brake products. Specially coated with Grey Fusion 4.0, this new line provides maximum protection from corrosion and comebacks, as well as increases service life, according to the company. Many of today’s vehicles have open wheel designs, which allows for complete exposure to all of the environmental elements. Brake Parts says RPT rotors are ideal for these vehicles in all weather conditions. BRAKE PARTS INC. www.brakepartsinc.com/raybestos/en-us.html

MTD May 2017

Products custom-valved gas-filled shock, SK-2806 features a sensor that turns off the dashboard warning light. It includes pre-installed spring perch and mounting hardware. ARNOTT INC. www.arnottindustries.com

Continental adds VDO OEM diesel fuel modules Tireco unveils Milestar Streetsteel tire Tireco Inc.’s new Milestar Streetsteel performance all-season tire is designed for classic American muscle cars, hot rods and classic trucks. Tireco says the contemporary all-season tread design delivers outstanding stability, cornering capability and steering response. Angled siping and a grooved pattern, along with four circumferential grooves, provide a wide contact patch for superior grip and wet performance. The Milestar Streetsteel tire is available in 10 sizes, in 14-inch and 15-inch wheel diameters, with applications from P225/70R14 to P295/50R15 covering most staggered combinations of wider, low-profile sizes. TIRECO INC. www.tireco.com

Continental Commercial Vehicles & Aftermarket has added VDO OEM Diesel Fuel Modules to its OEM Direct Parts Program. VDO OEM Diesel Fuel Modules are available for popular late model Dodge Ram truck applications from 2005 to the present. Because Continental is the original manufacturer of these fuel modules, they are the exact same OEM part as supplied to the vehicle manufacturer. VDO Diesel Fuel Modules are built in ISO/TS certified facilities and are available at competitive pricing through most major parts suppliers. CONTINENTAL COMMERCIAL VEHICLES & AFTERMARKET www.usa.vdo.com

IDUSA releases PG96 series oil filters The new Premium Guard PG96 filter from International Distributors USA Inc. (IDUSA) is designed to deliver more than 96% filtration efficiency for particles of 25 microns or more and can trap particles 4 times smaller than can be seen by the human eye. The company says the new PG96 filter breaks new ground in the oil filtration market with advanced filtration technology that delivers greater performance and longer protection at a reasonable price. The new PG96 offers complete coverage of spin-on and cartridge oil filters. It is available in a retail pack as well as installer pack. IDUSA www.pgfilters.com

Philips offers upgrade headlight bulbs in 3 different ranges Philips upgrade headlight bulbs from Lumileds LLC feature advanced technology designed to put more light on the road and enhance the beam pattern compared to standard halogen bulbs. Philips upgrade headlight bulbs are offered in three ranges to deliver 30%, 60%, and even up to 100% more vision, depending on the driver’s needs. Available for almost every vehicle make and model, Philips upgrade headlight bulbs dramatically improve nighttime visibility and increase driver safety, according to the company. LUMILEDS LLC www.usa.philips.com/c-m-au/car-lights

KTI has new lightweight service jack

Arnott offers value front shock for newer GM SUVs Arnott has released a value front shock for 2007-14 GM SUVs (GMT820 chassis) with Autoride (Z55 RPO). The company says the new front shock, P/N SK-2806, is designed for budget-minded shoppers and retails for $179. It is backed by Arnott’s limited lifetime warranty. SK-2806 includes a pre-installed spring mounting perch and an exclusive Arnott sensor which plugs into the auto-damping system to eliminate dash panel error messages. A

K Tool International (KTI) has introduced a 2-ton aluminum service jack (P/N KTI63098) that weighs only 48.5 pounds. The light weight of the new jack allows for convenient portability, from easily moving it between bays or placing it in the back of a service truck for roadside assistance. The jack’s lifting range is 3-1/4 inches to 18-1/2 inches. The jack’s dual pump system allows for quick lifting. KTI says it takes just seven strokes to reach top height under no load. K TOOL INTERNATIONAL www.ktoolinternational. com/kti

MTD May 2017

Ad index When you contact one of our advertisers please be sure to mention you saw their ad in Modern Tire Dealer ADVERTISER 1-800 Radiator & Air Conditioning Aftermarket Auto Parts Alliance Inc. ANCO Autel Intelligent Technology Inc. Automechanika Chicago Bartec USA BKT USA Inc. Bridgestone Tire Continental Gold Retailer Program Dealer Strategic Planning Inc. Falken Tires Federal Tire General Tire Greenball Corporation GroundSpeed Tires Hankook Tire America Corporation ITM TPMS K & M Tire Inc. Kenda Tire USA Kumho Tire USA Inc. KYB Americas Corporation Linglong Americas Inc. Marangoni Tread North America Inc. Michelin North America Inc. Monroe Shocks & Struts Nexen Tire America Inc. Nitto Tire U.S.A. Inc. Omnicraft Auto Parts Pro Comp Tires Reliable Intâ€™l Exhibition Services Co. Ltd. Schrader Performance Sensors SEMA Show Sentury Tire Americas Snap Finance STEELMAN Select TPMS, by JS Products Sumitomo Tire Sumitomo Tire TBC Brands TBC Brands Yokohama Tire Corporation ZC Rubber America Inc.

PAGE 32 17 49 79 78 75 11 55 51 85 81 63 19-24 52 59 57 9 61 IBC 27 35 7 53 13 41, 47 IFC OBC 15 38 36 77 83 37 39 44 5 71 67 45 31, 33 34

WEBSITE www.1800radiator.com www.alliance1.com www.ancowipers.com www.autel.com www.naceautomechanika.com www.bartecusa.com www.bkt-tires.com www.bridgestonetire.com www.contilink.com/gold www.dsp-20group.com www.falkentire.com www.federaltire.com www.generaltire.com www.greenball.com www.sentury.tires www.laufenn.com www.itmtpms.com www.kmtire.com automotive.kendatire.com www.kumhotireusa.com www.kyb.com www.linglongtire.com www.na-marangoni.com www.michelinman.com/ps4s www.monroe.com www.nexentireusa.com www.nittotire.com www.omnicraftautoparts.com www.procompusa.com www.citexpo.com.cn www.schraderinternational.com www.SEMAshow.com www.senturytireusa.com www.snapfinance.com www.steelmanselecttpms.com www.sumitomotire.com www.sumitomotrucktires.com www.gosailun.com www.tbcbrands.com www.yokohamatire.com www.arisuntires.com MTD May 2017

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Your turn

How does tire makers’ sports marketing influence dealers’ sales? Each month we ask members of our National Advisory Council (NAC) a question or questions on a current hot topic. Recently we asked, “Do you feel the money tire manufacturers spend on sponsoring professional sports teams is worth it? From baseball to soccer to basketball and football, the sports fans see tire makers’ names splashed in the stadiums. Does this translate into more tire sales for you? And do you sponsor local teams in your community? What benefits have you seen?” Here are some of their responses. 1. It’s not always easy to gauge the return on the investment with this type of marketing. One benefit that seems evident is the brand name placement. For instance, the brand behind home plate or on the table courtside of a basketball game will probably get more exposure for winning teams versus others. I see value when targeted to specific markets such as ultra-high performance tires in racing or all-terrain tires to specific off-road racing, etc. 2. I cannot say that I have ever had a customer come in and ask for tires because of the advertising at sports events, except for special ATV tires, and these were not at basketball or football games. I am sure the name at the big events does something, but I have not seen it. We sponsor the local youth teams, and have in some cases, three generations buying tires, and they do remember our store, but maybe not the brand of tire featured at the games.

3. Any advertising at sports venues is a plus. I feel this advertising helps with brand awareness. I sponsor local children’s sports. The parents appreciate the sponsorship and return the favor by buying tires.

4. Belonging to one of the Top 10 brands — particularly, among tire manufacturers — in and of itself generates interest. Personally, I don’t feel strongly that maintaining that brand presence among professional sports teams translates to more counter sales of tires. Our relationship with NASCAR may have a greater influence on our consumers’ buying decision-making process. We do sponsor, even coach, youth sports teams in our community. A local

presence in your community as an engaged partner simply can’t be beat. Word-of-mouth on the field also generates interest in our service and sales at the counter. 5. I think tire makers feel it is very good for them, although I find it very difficult to put a direct correlation to our sales. I think it improves brand awareness.

What’s on your mind? We also asked council members what was on their mind. Here are some responses.

I’m not a fan of price increases. Who is? Increases in raw material costs (read natural rubber) are being passed down to the dealer(s) from the manufacturer(s). After the first round of increases in January, there were rumblings of more increases to come. These increases will drive up both the cost to dealers and end prices to consumers. On the commercial tire front, given that many distributors/importers banked heavily on the truck tire tariff happening — I’m certain there is a “glut” of inexpensive imports waiting to be sold at very low margins and turned into cash. I’m fearful the commercial tire market will be extremely volatile this year for this very reason. Tripp Lee, General Manager Frasier Tire Service Inc. Sumter, S.C.

Help others and you will be helped in return. Jeff Cohen, Co-owner Traction Wholesale Center Bensalem, Pa.

Comment from our website Concerning the blog Editor Bob Ulrich wrote on ramsomware (see the cover article in our April issue), a reader commented:

The best practice is to have excellent network protection and to have your data backed up in several places, at least one of which is off site. That way, if you do get ransomware you can restore your data. I would never pay the ransom, as oftentimes the attackers will supply you with a fake key to retrieve your data — that is if they provide you with anything at all. Ginny Russell, IT Manager Stratham Tire Inc. Brentwood, N.H.

Join Modern Tire Dealer’s National Advisory Council Each month, Modern Tire Dealer is guided and influenced by a select group of readers — members of our National Advisory Council. These members’ opinions are the heart of the monthly Your Marketplace column, compiled by industry analyst Nick Mitchell. If you’d like to join this prestigious group, please let us know. We’d love to hear from you. Contact Editor Bob Ulrich at Bob.Ulrich@bobit.com or call (330) 899-2200, ext. 11.

MTD May 2017