Modern Tire Dealer - November 2023

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ON THE RISE 35 SUPERSTARS READY FOR THE FUTURE PASSENGER TIRE SIZES FAR FROM ‘TOPPING OUT’ EVs, VEHICLE AGE WILL ADD EVEN MORE SKU COMPLEXITY EBITDA OR FREE CASH FLOW? WHICH IS THE BETTER MEASUREMENT?

THE TIRE DEALERSHIP OF TOMORROW HOW TO PREPARE YOUR BUSINESS FOR THE FUTURE

November 2023 | Vol. 104, No. 11 | $10 | www.moderntiredealer.com

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DEPARTMENTS 4 Editorial

The Industry’s Leading Publication November 2023, Volume 104, Number 11

Departure from the norm Discount/Dunn deal raises interesting questions

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

8 Industry News

Staying focused SRNA CEO says eye will remain trained on brand and dealers

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

18 Your Marketplace

Tire sellout shows momentum The workplace is giving miles driven a boost

70 Business Insight

High-risk management Are you doing everything you can to prevent common shop injuries?

72 Dealer Development

Are you optimizing your profitability?

How to best leverage your most valuable asset

74 Mergers and Acquisitions EBITDA or free cash flow?

Which is the better measurement?

76 EV Intelligence

Are you and your employees resisting the EV movement?

Motivation comes from a culture that moves forward

78 Focus on Dealers

Best-One credits growth to focus on family Group rolls out new programs for members

80 Focus on Industry

Serving the R/T market Sailun answers customer needs with Terramax RT

82 Focus on Industry

Tireco celebrates second tire made in the USA There are advantages to domestic production, says Andrew Hoit

84 Focus on Industry

Evaluating the possibilities More Cosmo stores are in the works

85 TPMS: Lexus IS Series – 2020-2022 90 Ad index

20 Ongoing training will be part of the tire dealership of tomorrow. Turn to page 20 to learn more.

Photo: VIP Tires & Service

F E AT U R E S 20 The tire dealership of tomorrow

How to prepare your business for the future

28 On the Rise

35 superstars ready for the future

50 Passenger tire sizes are far from ‘topping out’

EVs, vehicle age will add even more SKU complexity

56 The art of persuading others The power of trust, words and choice when leading and selling

59 What’s in EV tires that makes them so quiet?

Tiremakers discuss sound-deadening technology — and EV tire repair

64 Buyer’s market

How Telle Tire became an acquisition expert

66 ‘You’re going to have to do this’

C&D Tire navigates the ADAS learning curve

Cover photos: courtesy of VIP Tires & Service, Telle Tire & Auto Centers and MTD Modern Tire Dealer is a proud member of:

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68 New TIA president outlines goals

Training, more members top list of objectives

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Editorial

Departure from the norm

DISCOUNT/DUNN DEAL RAISES INTERESTING QUESTIONS By

Mike Manges

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here have been a number of big tire dealership mergers and acquisitions this year. One of the most interesting ones, in my opinion, is Discount Tire’s recent purchase of Buffalo, N.Y.-based Dunn Tire Corp.’s 25 retail stores, which was finalized on Sept. 30. (The stores are located throughout New York and Pennsylvania.)

Why do I find this transaction extra-compelling? One, it’s a departure from Discount Tire’s traditional growth model in a number of ways. And two, it raises some natural — and interesting — questions about Discount Tire’s expansion plans, going forward.

Discount Tire’s growth has traditionally come through new store, greenfield construction, though it purchased Tire Rack in 2021, which of course, was a different type of deal.

Does the Dunn Tire acquisition signal a change in Discount Tire’s growth strategy? Does Discount Tire have plans to acquire additional tire dealerships? If so, who is Discount Tire looking at? (It should be noted that the Dunn Tire transaction did not include Dunn’s wholesale business, Exxpress Tire Delivery, plus that operation’s five distribution centers.)

Also significant is the fact that the Dunn Tire stores that Discount Tire has acquired offer auto maintenance and repair services — a major departure from Discount Tire’s traditional, tires-only strategy.

This doesn’t necessarily surprise me, since in 2021, Dean Muglia, Discount Tire’s CEO, told me, “I think you will see us experiment with other services more. We recognize the world is changing fast and so are the needs of our customers. There may be some services that we choose to offer in our stores and there may be other services we may choose to partner on, depending on the needs of our customers.”

I don’t expect to see Discount Tire offer automotive service at its existing locations, since it would be an incredibly complex, expensive undertaking to retrofit and remodel those stores’ service bays.

But who’s to say Discount Tire won’t make auto service capabilities a “prerequisite” for future acquisitions or offer auto repair services at future greenfield locations? Will Discount Tire use Dunn Tire as a test lab to help determine if it wants to make that investment?

No matter how things shake out, it’s clear that more services are in the works. In an early-October press release from Discount Tire, Christian Roe, the company’s chief revenue officer, said, “We will continue to grow our businesses in new markets and bring full-service offerings to customers.” (In addition, right before this issue of MTD went to press, a Discount Tire spokesperson told me that the company “will explore growing its business in new and existing markets by acquiring full-service or existing businesses.”)

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Does the Dunn Tire Corp. acquisition signal a change in Discount Tire’s growth strategy?

Photo: MTD

In the October press release, Discount Tire also said that all Dunn Tire retail stores will continue to operate under the Dunn brand. This makes sense since Dunn Tire has a well-respected name and enjoys substantial market share, especially in the Buffalo area, where it has eight locations. (Dunn Tire’s next biggest market is Rochester, N.Y., where it has seven stores.)

This leads to my next question: will Discount Tire let future acquisitions — if there are future acquisitions — operate under their own names or will there be some sort of store brand/format mix, based on the profitability levels of individual stores, their specific locations, market saturation and other considerations?

And while we’re talking about brands and names, will Discount Tire introduce new tire brands to Dunn Tire’s current product mix? Discount Tire offers more than 60 brands, according to the 2023 MTD 100. Dunn Tire offers around 20 tire brands, three of which — Kelly, Mastercraft and Sailun — are not carried

by Discount Tire. Will we see some brand cross-pollination or will Discount Tire leave Dunn Tire’s product menu untouched?

Finally, the Dunn Tire acquisition is noteworthy because it’s a continuation of Discount Tire’s push into the northeastern part of the United States. The company, which is based in Scottsdale, Ariz., opened its first Pennsylvania store in Pittsburgh nearly three years ago — a move Muglia told me was “a nice entrance into the East Coast market, which we’re really focusing on.”

It isn’t inconceivable that Discount Tire will eventually have stores on both the East and West Coasts.

Whenever a deal of this magnitude is announced, there will always be speculation. In the meantime, we’ll continue to dig for more information and will share our findings with you. ■ If you have any questions or comments, please email me at mmanges@endeavorb2b.com.

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ModernTireDealer.com DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER

Stay tuned to MTD’s podcast!

The Modern Tire Dealer Show is available on Apple Podcasts, Spotify, Google Podcasts, iHeart Radio, Amazon Music, Audible and MTD’s website. Download it today!

Sign up for Modern Tire Dealer’s eNewsletters to receive the latest tire news and our most popular articles. Go to www.moderntiredealer.com/subscribe.

3515 Massillon Rd., Suite 200 Uniontown, OH 44685 (330) 899-2200, fax (330) 899-2209 www.moderntiredealer.com PUBLISHER Greg Smith gsmith@endeavorb2b.com (330) 598-0375 EDITORIAL Editor: Mike Manges, (330) 598-0368, mmanges@endeavorb2b.com Managing Editor: Joy Kopcha, (330) 598-0338, jkopcha@endeavorb2b.com Associate Editor: Madison Gehring, (330) 598-0308, mgehring@endeavorb2b.com PRODUCTION Art Director: Erica Paquette Production Manager: Karen Runion, (330) 736-1291, krunion@endeavorb2b.com

Best-One has dealer partners in 28 states who together, operate more than 320 locations and employ more than 5,000 people.

Photo: MTD

Celebrating 75 years in the tire industry Best-One Tire Group dealers from all over the country gathered in September in Indiana for a dealer meeting that also marked the group’s 75th anniversary.

And dealers have had plenty to celebrate this year, as more have partnered with Best-One, and existing Best-One dealers have continued to grow and acquire more businesses to bring into the fold. Modern Tire Dealer was happy to attend and bring some of the party back to our readers. Remember to check out MTD’s online photo galleries to keep up with our editors’ travels all year long.

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Photos: Best-One Tire Group celebrates 75 years Discount Tire has bought Dunn Tire’s retail stores CEO Kato discusses what’s next for TBC Who’s OE at the Detroit big three?

Best-One credits growth to focus on family Why discounting isn’t your biggest gross profit problem Tire dealers swap best practices for safety Photos: A peek inside the Safety Leadership Summit Flynn’s Tire sells commercial division to Bob Sumerel Tire Harmon to lead Yokohama Off-Highway OE

DIGITAL EDITION Check out MTD’s digital edition at the top of our website’s homepage.

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ACCOUNT EXECUTIVES Marianne Dyal mdyal@endeavorb2b.com (706) 344-1388 Sean Thornton sthornton@endeavorb2b.com (269) 499-0257 Kyle Shaw kshaw@endeavorb2b.com (651) 846-9490 Martha Severson mseverson@endeavorb2b.com (651) 846-9452 Chad Hjellming chjellming@endeavorb2b.com (651) 846-9463 MTD READER ADVISORY BOARD Rick Benton, Black’s Tire Service Inc. Jessica Palanjian Rankin, Grand Prix Performance John McCarthy Jr., McCarthy Tire Service Co. Inc. Jamie Ward, Tire Discounters Inc. CUSTOMER/SUBSCRIPTION SERVICE (877) 382-9187 moderntiredealer@omeda.com ENDEAVOR BUSINESS MEDIA, LLC CEO: Chris Ferrell President: June Griffin CFO: Mark Zadell COO: Patrick Rains CRO: Reggie Lawrence Chief Digital Officer: Jacquie Niemiec Chief Administrative and Legal Officer: Tracy Kane EVP Transportation: Kylie Hirko VP Vehicle Repair: Chris Messer VRG Editorial Director: Matthew Hudson

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Modern Tire Dealer (USPS Permit 369170), (ISSN 0026-8496 print) is published monthly by Endeavor Business Media, LLC.1233 Janesville Ave., Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI, and additional mailing offices. POSTMASTER: Send address changes to Modern Tire Dealer, PO Box 3257, Northbrook, IL 60065-3257. SUBSCRIPTIONS: Publisher reserves the right to reject non-qualified subscriptions. Subscription prices: U.S. ($81.25 per year). All subscriptions are payable in U.S. funds. Send subscription inquiries to Modern Tire Dealer, PO Box 3257, Northbrook, IL 600653257. Customer service can be reached toll-free at 877-382-9187 or at moderntiredealer@omeda.com for magazine subscription assistance or questions.

Printed in the USA. Copyright 2023 Endeavor Business Media, LLC. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopies, recordings, or any information storage or retrieval system without permission from the publisher. Endeavor Business Media, LLC does not assume and hereby disclaims any liability to any person or company for any loss or damage caused by errors or omissions in the material herein, regardless of whether such errors result from negligence, accident, or any other cause whatsoever. The views and opinions in the articles herein are not to be taken as official expressions of the publishers, unless so stated. The publishers do not warrant either expressly or by implication, the factual accuracy of the articles herein, nor do they so warrant any views or opinions by the authors of said articles.

MTD November 2023 10/17/23 3:53 PM

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Industry News

Staying focused

SRNA CEO SAYS EYE WILL REMAIN TRAINED ON BRAND AND DEALERS

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meeting in Portugal. Why an all-weather tire now?

umitomo Rubber North America Inc.’s (SRNA) “focus on Falken” strategy is paying big dividends, says Darren Thomas, the company’s CEO and president.

Thomas sat down with MTD during SRNA’s 2023 Falken Dealer Invitational event in Portugal to discuss the company’s 2023 highlights, including new products it has introduced, the evolution of its evergrowing Falken Fanatic dealer program and more.

MTD: Can you bring us up to speed on SRNA’s business and performance this year? What have some of the highlights and challenges been?

Thomas: I would say the most significant change in our business has been our sheer ability to maintain an improved mix position, in terms of products, price and channel. We have consistently been able to improve all three of those.

MTD: During your 2022 dealer meeting, SRNA officials told dealers that the company would be “laser- focused” on the Falken brand and Falken dealers.

Has that strategy changed?

Thomas: It hasn’t changed.

MTD: Has it been effective?

Thomas: It’s been crazy-effective. We’ve gone from 4,000 (Falken Fanatic) associate dealers to 14,000. You can’t manufacture that type of expansion of distribution at wholesale. That takes brick-by-brick and now we’ve been doing this for four or five years, the math is prevailing and it has simply exploded our business. We’re putting all of our money there.

MTD: What do you attribute the Falken Fanatic program’s growth to?

Thomas: It’s attributable to us taking the

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“I would say the most significant change in our business has been our sheer ability to maintain an improved mix position, in terms of products, price and channel,” says Darren Thomas, CEO and president of Sumitomo Rubber North America Inc. Photo: MTD

initiative to put 30 well-trained individuals on the street who are going to make 10 sales calls per day. Thirty times 10 is 300 and you’re going to sign some percentage of those. Do it over and over and it’s just math.

This is exceptionally hard to do, but when we turned on the FAST (Fanatic Associate Sales Team), we annihilated our budget for advertising and promotion.

We pulled it away from consumer and we put it into independent tire dealers, who ultimately sell to those folks.

MTD: Have you made any enhancements to the Fanatic program in the last year?

Thomas: We change it every day. Keeping it simple is one method that works. Always visiting dealers and always signing people up and understanding attrition is part of it is another strategy that works. Without question, our FAST team maintains our relevance in the marketplace, no matter what pressures are out there.

MTD: Let’s talk products. You introduced a new all-weather tire, the Aklimate, during your 2023 Dealer Invitational

Thomas: Whereas for any 17-inch size (tire), we probably have 100 competitors, all-weather is going to have, at least in the near-term, fewer competitors. And it gives us an innovation story.

We’re only going to get so much of the touring (segment) business and we’re only going to get so much of that at our current price, so we needed to have something that’s more competitive. Our parent company has very good all-weather technology, so introducing an all-weather tire (was) a very easy development argument for us.

MTD: During your dealer meeting, you also unveiled the new WildPeak A/T 4W light truck tire. How significant of a product will that be for SRNA?

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Thomas: Of the total all-terrain category, we have 9% share. That’s massive. Nobody would ever have expected us to achieve that level of market share at the level of price we’ve achieved it, so that’s significant and it illustrates just how important it is for us to make the transition to the WildPeak A/T 4W. And the 4W transition means we can’t be remiss in understanding the inventories of the WildPeak A/T 3W that are sitting in current distribution.

We have to understand the long-term demand for the 3W that is still out there.

The WildPeak A/T 4W is a cornerstone of our business. The amount of product it’s going to take for us to move that into distribution and change the import strategy from 3W to 4W — our company has never faced this big of a launch.

MTD: You also have a new Azenis, the RS820, coming out...

Thomas: We’re targeting Michelin here.

This is going to be a reach for us because it’s one thing to achieve the performance

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Industry News

Bites SRNA hikes prices Sumitomo Rubber North America Inc. has announced a 6% price increase on select Falken passenger and light truck tires in the U.S. and Canada, effective Nov. 1.

Falken medium truck tire prices will have inline price adjustments, depending on item and pattern.

Plant marks 25 years The Bridgestone America Tire Operations LLC passenger and light truck plant in Aiken County, S.C. is celebrating its 25th anniversary of operations. The Aiken plant, which is located in Graniteville, S.C., employs more than 1,700 people and produces ENLITEN technology for Bridgestone brand tires.

Montouri joins TGI Tire Group International LLC (TGI) has named former Mickey Thompson Tires & Wheels President Dominick Montouri its chief strategy officer. He will lead strategic growth initiatives for TGI. Montouri served as Mickey Thompson’s president for six years.

Pomp’s to host TAT event Pomp’s Tire Service Inc. and Bridgestone Americas Inc. are sponsoring an event to battle human trafficking on Nov. 17, in partnership with Truckers Against Trafficking. The Freedom Drivers Project will be open for tours at the Pomp’s Tire Service store in Commerce City, Colo. The mobile exhibit discusses human trafficking and shows how the transportation industry is working to fight it.

REPAIR Act takes spotlight A U.S. House subcommittee hearing on “proposals to enhance product safety and transparency for Americas” included discussion of the automotive industry’s right to repair legislation, the REPAIR Act. The hearing also featured testimony by a veteran shop owner who spoke about the importance of right to repair.

Larry Nicholls has died Larry Nicholls Sr., the founder of Discount Tire & Automotive, Wholesale Tire Distributors and Plains Tire Co. and an early leader in the creation of American Car Care Centers, died on Sept. 26 at the age of 78. He began his tire industry career with U.S. Rubber Co.

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level you need and it’s another thing to convince the customer to go with your brand. And the amount of ultra-high performance (tire) segments that are below the flagship max segment is a lot.

This is one of the first (tires) we have ever made that has the ability to attack tier-one domestic and European OE applications and this product will provide everything necessary. We’re swimming with big fish with the RS820.

MTD: It was mentioned during your dealer meeting that SRNA is developing a tire for electric vehicles (EVs)...

Thomas: Falken Europe already has an EV-specific line. We just haven’t adopted it.

We’re not certain how many SKUs we need in the marketplace, in total, and whether or not the consumer must have an EVlabeled product or if they simply need an (existing tire) with the right load index. The independent tire dealer is going to move the consumer into the product they need.

So that is something we need to continue to look at and decide how it fits into our portfolio. Ultimately, we’re still evaluating.

MTD: The U.S. Tire Manufacturers Association (USTMA) has dialed back its overall shipment projections in four out of the six tire categories it tracks. What’s your take on demand? What are you hearing from the field and your customers?

Thomas: What we’re seeing is that overall demand is good. The question is, ‘What’s your measure? Are you measuring it based on price? Are you measuring it simply based on units or market share?’ The market is good. And TBR will eventually recover. (Editor’s note: The USTMA projects U.S. medium truck tire shipments will be down 16% 2023 versus 2022.) But it has to work through all of these imports that didn’t get shipped during COVID-19.

MTD: Looking at supply, how have your fill rates been? Are you dialing back production anywhere?

Thomas: We’re good for production. Our Buffalo plant has been good for its numbers.

We have slowed down our TBR expansion (in Buffalo.) We haven’t taken down our capacity, but we’ve brought on some capacity that we’re probably not going to fire up for a while. We’d much rather wait the market out. That’s why we aren’t rushing to

change our market price (on the TBR side).

We’re just dealing with it on a case-by-case basis so we can maintain our current levels and not make them any worse.

MTD: Are you making capital investments or production ramp-ups at other plants you pull from?

Thomas: Our parent company (Sumitomo Rubber Industries Ltd.) is making capital investments at all of its facilities. We only pull a small percentage of their total production, so when they make a capacity change, we’re simply part of the equation, not the whole equation. But (Sumitomo Rubber) has done an exemplary job of supplying us with product.

MTD: Looking at inventory levels throughout the industry, things seem to be moderating...

Thomas: Same with us. I can’t say we’re in an overstock position, other than with TBR. With everything else, we’re in a great position.

MTD: How is your business among wholesale tire customers?

Thomas: We do business with every legitimate wholesaler in North America, other than those that don’t strategically fit into our portfolio for some other significant reason. In most markets, we have at least two very qualified, known distributors.

The message that’s most important as it relates to the Falken brand is we are going to be unwavering in our support of small, independent tire dealers. The priorities for us are products, small independents and then distribution. Innovative products keep you relevant. You come up with the right product and the customer immediately is engaged with you, so product will always prevail. Then you need distribution. Falken and distributors...we’re just in the middle.

Without an innovative product and the retailer, there is no business.

We’re super-proud of our distribution. We’re proud of the way our dealers behave. Because Falken is very aware of who ultimately buys from our distributors, it puts us on equal footing. The level of respect between us and our distributors is really high. The more transparent things are, the more honest and candid the conversations can be and it just makes for great relationships. — Mike Manges MTD November 2023 10/17/23 3:53 PM

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Industry News

Bites Anyline has sidewall scanner Anyline Inc. has unveiled its new Tire Sidewall Scanner that captures all of the information on a tire sidewall in a single photo and converts the information to digital data.

Harmon takes OE role Yokohama Off-Highway Tires Inc. has named Lawrence Harmon president, global OE business and growth segments.

He also has joined the company’s executive committee. Harmon held previous roles at Michelin North America Inc. and the Carlstar Group.

Pirelli will rally Pirelli North America Inc. has signed a multi-year deal sponsorship with Rebelle Rally, the first all-women’s off-road navigation rally based in the U.S. The 65 teams in the endurance contest will test Pirelli’s Scorpion ATR and Scorpion All-Terrain Plus tires.

Continental picks R&D lead Edwin Goudswaard will lead Continental AG’s research and development activities.

He succeeds Boris Mergell, who took over as head of the user experience business area at Continental Automotive.

Goudswaard has been with Continental since 2006. He most recently led R&D efforts for the firm’s replacement passenger tire business.

John Bean rolls out videos John Bean has updated its Tru-Point ADAS calibration tool’s website with videos that demonstrate the calibration process, plus an ADAS profit calculator and more.

ATD wins workplace award American Tire Distributors Inc. was named one of “Newsweek” magazine’s Most Loved Workplaces for the second consecutive year. The recognition is part of a collaboration with the Best Practice Institute, which surveys employees to make its determinations.

CEAT wins business prize Ag tire supplier CEAT Ltd. has won the Deming Grand Prize, which is instituted out of Japan and is a recognition of business excellence for “total quality management,” according to CEAT officials. The award was given to CEAT last month.

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Discount Tire has bought Dunn Tire’s retail stores

iscount Tire is expanding its retail footprint with the acquisition of 25 Dunn Tire locations in New York and Pennsylvania.

The purchase, which closed on Sept. 30, does not include Dunn’s wholesale business, Exxpress Tire Delivery. That operation — including its five distribution centers and 200-plus employees — will remain owned by Dunn Tire’s investment team and will continue to be led by its current President David Simons, as well as Vice Presidents Paul Pittner and Stephen Clave.

This retail expansion by Discount Tire includes stores that offer not just tires, but automotive services — which is a departure from the typical tires-only strategy for Discount Tire’s 1,150-plus stores around the country.

Discount Tire says the deal expands its commitment to serve retail, fleet, B2B and online shoppers.

Discount Tire Chief Revenue Officer Christian Roe said, “We are excited to connect with Randy and Rober t Clark to bring Dunn Tire into our family as we enter the next phase of our company’s growth. They have built Discount Tire has purchased the retail operations of an exceptional business Dunn Tire, which includes 25 stores throughout the ser v ing customers states of New York and Pennsylvania. across New York and Photo: Dunn Tire Pennsylvania. Looking ahead, we will continue to grow our businesses in new markets and bring full-service offerings to customers.”

Dunn Tire’s stores serve markets in western and central New York and Pennsylvania. This will expand Discount Tire’s presence in Pennsylvania, but also mark its entrance into New York.

Randy Clark, current Dunn Tire chairman, and a group of investors in Buffalo, N.Y. acquired the Dunn Tire business from its founder, James Dunn, in the 1990s.

“We have the deepest respect for the strong culture that Discount Tire has fostered over its history,” says Clark. “In searching for the right partner that would uphold the highest standard of care and respect for our people and customers, it became clear that was something only Discount Tire could offer.”

Dunn Tire’s Robert Clark, managing director of retail operations, will continue to oversee the brand’s day-to-day retail and service operations. Chris Adams, senior vice president at Discount Tire, has oversight of full-service and fleet business segments. All current Dunn Tire retail management and store employees will remain employed and the 25 retail locations acquired by Discount Tire will continue to operate using the Dunn Tire brand name.

In its announcement of the Dunn Tire purchase, Discount Tire also noted the company had previously purchased Ellisville Tire & Service, a single-store tire dealership in Ellisville, Mo., which is part of the greater St. Louis metro area.

Discount Tire noted that its founder, the late Bruce Halle, was inducted into the Tire Industry Association Hall of Fame in 2012, alongside Dunn Tire’s Clark, as well as Tire Rack founder Peter Veldman. (Discount Tire acquired Tire Rack at the end of 2021.)

Discount Tire’s Adams says that “in many ways, the acquisition of Dunn Tire is a storied reunion between great leaders and great people that take care of their communities.”

MTD November 2023 10/17/23 3:53 PM

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Of f- road ca pa bility.

O n - road com fort .

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On-/Off -Road Rugged Terrain Hybrid A/T

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10/17/23 3:53 PM 10/6/23 12:54 PM

Industry News

Bites Maserati picks Continental Maserati has selected Continental AG’s Conti CrossContact LX Sport in a 19-inch option and the CrossContact RX in a 21-inch size to be original equipment on its new Grecale luxury SUV. The luxury carmaker also approved the 20-inch Continental EcoContact 6.

Autel expands coverage Autel U.S. has released another round of 2023-24 vehicle model advanced driver assistance system calibration coverage software. The expansion includes a mix of both domestic and international car brands.

Steve Shannon buys Cheney Bloomsberg, Pa.-based Steve Shannon Tire Co. has acquired Cheney Tire of Watertown, N.Y., from owners Tom and Maureen Cheney. Cheney Tire was founded in 1954 and offers passenger, light truck, commercial, OTR and ag tires.

The acquisition gives Steve Shannon Tire 38 retail and commercial locations throughout Pennsvlvania and New York, plus nine wholesale distribution centers and a retread plant.

ASE adds EV, ADAS exams

The National Institute for Automotive Service Excellence (ASE) has announced new certification tests for electric/highvoltage vehicles and advanced driver assistance systems. Both exams are now available on ASE’s website.

F

Bob Sumerel buys Flynn’s commercial business

lynn’s Tire Group has sold its commercial tire division to Erlanger, Ky.-based Bob Sumerel Tire Co. This transaction includes commercial tire facilities in Carnegie, Pa.; Hubbard, Ohio; Dover Ohio; and a retreading facility, also in Dover, Ohio.

“Selling the commercial part of our business wasn’t something my family Bob Sumerel Tire Co.’s purchase of and I were looking to do, but when the commercial assets of Flynn’s Tire Bob Sumerel approached us, it gave us Group will enable Flynn’s Tire to focus on growing its retail store business. reason to think long and hard about our Photo: Flynn’s Tire Group strategic positioning,” says Joe Flynn, president of Flynn’s Tire.

“We were at a point where growing the commercial business was a challenge.

However, Bob Sumerel Tire Co. has a singular focus of growing and developing the commercial side of the business and they do it very well.”

Flynn’s Tire’s wholesale division will continue selling commercial tires to its customers.

“This sale puts us in a great position to acquire multi-store retail chains and reach our goal of growing to 50-plus retail locations,” says Flynn.

Flynn’s Tire recently opened a new distribution center in New Stanton, Pa., as well as two new retail stores in early-2023. The company says it is also in the process of purchasing two additional retail stores, “which will be fully acquired in the next 30 days.”

“We are very excited to acquire Flynn’s commercial tire business,” says Todd Sumerel, president of Bob Sumerel Tire Co. “Flynn’s is very well respected in the commercial tire industry and we are confident that the combined companies will provide superior customer service and growth opportunities for all employees. We welcome Flynn’s Commercial Tire to the Bob Sumerel Tire Co. team.”

Bob Sumerel Tire Co. has been in business since 1969 and has grown to 22 commercial locations and five retread plants, covering Ohio, Kentucky, Western Pennsylvania and West Virginia.

Point S has added 57 stores Point S USA has expanded its network by nearly 60 stores so far this year and has entered three new states: Maine, Maryland and Michigan. Eighteen of those new locations have joined the group’s new associted dealer program, an entry point to the cooperative that does not require store rebranding. The remaining new locations will adopt Point S store branding and signage. During 2022, Point S added 28 locations.

USTMA names chairman

Alexis Garcin, the president and CEO of Michelin North America Inc., is the new chairman of the U.S. Tire Manufacturers Association board. He replaces Paolo Ferrari, president and CEO of Bridgestone Americas Inc., who had served as the association’s chair since 2021. Garcin was elected on Oct. 11. His term began immediately.

14 2311MTD_08-15_News.indd 14

S

STTC expands in New Jersey

ervice Tire Truck Centers Inc. (STTC) has acquired Giant Tire Service in Hawthorne, N.J. The deal gives STTC the ability to cover the entire state of New Jersey from eight locations.

Walt Dealtrey Jr., president and CEO of STTC, says Giant Tire Service “has been widely recognized for its exceptional truck and earthmover services” for decades. He adds that the acquisition was “an ideal match for both organizations.”

Dealtrey says both organizations have an “extensive lineage” and are service-oriented, which has been “cultivated over multiple generations.”

Giant Tire Service is “a well-managed family enterprise with a deeply ingrained commitment to service excellence.”

Giant Tire Service co-owners Dave and Denise Landau will remain in their current management roles.

For STTC, this acquisition comes after the company opened a new commercial facility in April in Wall, N.J., to capture business from the closed Edwards Tire Co., “which had also built a strong business with its specialization in earthmover services.”

STTC, which is based in Bethlehem, Pa., operates 54 locations throughout the Mid-Atlantic and Northeast areas. ■ MTD November 2023 10/17/23 3:53 PM

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www.yokohama-oht.com

HERE’S WHAT OUR CUSTOMERS ARE SAYING:

“I’M AMAZED AT THE STABILITY AND THE DURABILITY.” Jake Rice of AA Quarry runs a CAT 982M loader with up to 15 tons of limestone shot rock and gravel on cycles of up to a mile. Other brands cracked under pressure, so AA Quarry switched to 875/65R29 Yokohama RT41s.

“The stability of them just amazed me,” says Rice. “We’ve got 1,300 hours on them and we don’t have a crack on them yet. It’s an even wear pattern, no separation, a lot less cuts from the rocks due to the design of the sidewall. They’re just a really good tire.”

Ask your tire dealer about Yokohama OTR tires for loaders, excavators, haul trucks, and more, call us at (800) 343-3276, or visit www.yokohama-otr.com.

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NumbersThatCount

Relevant statistics from an industry in constant motion

6

Consecutive months of year-over-year drops in truck tonnage in 2023 Source: Auto Care Association Trend Lens Photo: MTD

7,679

Locations represented on the MTD 100 in 2022 that sold Michelin tires Source: MTD Facts Issue

$1.7 BILLION

Sales from tires built and exported from the State of South Carolina in 2022 Source: South Carolina Department of Commerce

Photo: Michelin North America Inc.

Photo: South Carolina Ports Authority

$9 BILLION

62.3 MILLION

Source: MTD Facts Issue

Source: Goodyear Tire & Rubber Co.

Photo: Toyo Tire U.S.A. Corp.

Photo: Goodyear Tire & Rubber Co.

Value of the light truck replacement tire market in the U.S. last year.

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Replacement tires sold in the U.S. in 2022

by Goodyear Tire & Rubber Co.

MTD November 2023 10/17/23 3:53 PM

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Yo u r M a r ket p l a ce

Tire sellout shows momentum

T

THE WORKPLACE IS GIVING MILES DRIVEN A BOOST By

John Healy

R

etail sellout trends returned to positive territory in September, as our dealer contacts report retail sales growth of 1% during the month. After the slight decline to just below flat in August 2023, the return to growth is a good indicator.

It’s a marked improvement from seven straight months of negative results earlier in the year and a notable gain from the mid-single digit declines we had seen in the spring and early summer. And while it’s less pronounced than the 3.5% gain in July, it still represents an improvement.

Regionally, the biggest gains were seen in the Northeast and Southeast, with sellout trends up 3.8% and 3.4% respectively. The Southwest was the lone region to report negative sellout, with dealers down 2.3% year-over-year.

We see September’s positive momentum as confirmation of recovery in the replacement tire market.

We continue to see trends incrementally stronger than earlier in the year. While dealers didn’t see a clear catalyst for the September strength, we believe the consumer deferment cycle is pushing more consumers to pursue needed auto repairs.

Costs also are preventing consumers from replacing their current vehicle.

Given these trends, we would not be surprised to see sellout levels remain positive moving forward. Easier comparables will help and the turn of weather seasons has the potential to help, too.

A MILES DRIVEN FACTOR

Another positive sign is the continuing improvement in miles driven. September marked the seventh consecutive month of gains. We have to go back to the period of September 2021 to March 2022 to see such a stretch. Our miles driven momentum index registered a 2.1% gain in September, up from yearover-year gains of 1.4% in August and 2.9% in July. As a whole, the index for the third quarter grew 2.1%.

We believe shifting trends in workforce dynamics are a contributing factor to the recent strength in miles driven.

More companies are gradually bringing employees back into the office. While remote and hybrid work is undoubtedly a trend fol low ing t he COVID-19 pandemic, we see a broadening trend of companies implementing hybrid approaches to reduce remote work. The result is employees spending more time commuting, which positively impacts vehicle miles driven — and ultimately boosts tire replacement and retail sellout.

As for tire inventory, we continue to see the industry in a bit of a holding pattern. Dealers appear comfortable with current inventory levels based on an expectation that wholesale prices could decline in the coming months.

Based upon this, we believe wholesale tire sales could be sluggish in the months ahead, while favorable signs continue to appear on the retail side of the equation.

Snapshot of Dealer’s PLT Tire Volumes (Year-Over-Year Change) Jul22

Aug22

Sep22

Jul23

Aug23

Sep23

Increase

25%

33%

Flat

25%

0%

43%

70%

33%

55%

41%

21%

30%

44%

17%

26%

Decline

50%

67%

36%

0%

23%

28%

33%

Total

100%

100%

100%

100%

100%

100%

100%

SOURCE: NORTHCOAST RESEARCH ESTIMATES

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Average

DEMAND EDGES UPWARD

Commentary from tire dealers suggests consumer demand for passenger and light truck replacement tires was stronger than a year ago. Twenty-eight percent of our contacts saw positive demand trends in September, up from the 11% of dealers who reported positive demand in August.

And while sellout comparables are expected to be easier as we move into fall and winter, September 2022 was by no means an easy comparable. This year, it seems the positive demand was driven by consumers seeking less expensive tire options. Several tire dealers indicated lower-priced options were in demand and gaining share in the mindset of consumers, as compared to higher-tier brands with more expensive pricepoints. We believe the gains in demand will continue and if winter 2023 simply cooperates, we may see further acceleration in consumer tire replacement.

In September, dealers report tier-two tire brands were far and away the most in demand. We’ve seen in recent months that consumers trading down has been a prevalent theme echoed by operators in the replacement tire space and September’s tier result confirms this view.

Contacts told us that the price of low-cost imports continues to fall, while premium tire prices have remained relatively sticky.

And in September, we saw tier-one brands fall to the bottom of our rankings, after grabbing the top spot with the highest demand a month ago.

Given our current inflationary environment, it seems rational that consumers are trading down. We still believe that long term, consumers will opt for tier-two products to strike a balance between cost and performance. ■

P

A

W P B

W n w f a h

T y t

John Healy is a managing director and research analyst with Northcoast Research Holdings LLC, based in Cleveland, Ohio.

Healy covers a variety of subsectors of the automotive industry.

If you would like to participate in the monthly dealer discussions, contact him at john.healy@northcoastresearch.com.

MTD November 2023 10/17/23 3:53 PM

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Together, we can offer premium tires to all your customers, at a price that will leave them with money to polish their rims.

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10/17/23 3:53 PM 9/19/23 9:02 AM

The tire dealership of tomorrow

Ongoing employee training, at all levels, will be a critical part of the tire dealership of tomorrow.

Photo: VIP Tires & Service

THE TIRE DEALERSHIP OF TOMORROW

HOW TO PREPARE YOUR BUSINESS FOR THE FUTURE By

Kevin Rohlwing

A

s an elder member of Generation X, I’ve seen the lifetime of technology changes in almost everything. From full analog to completely digital, it’s been a leap in generations of advances over the past 50-plus years. According to the Adobe Acrobat Team,” A modern smartphone is exponentially more powerful than the guidance computer NASA used for the famous Apollo 11 mission,” which took place in 1969.

When my tire industry career began in 1982, there was a consistent mix of bias-ply and radial tires. It was also the beginning of P-metric sizing. Wheels were mostly steel, with wheel covers, but there were a few aluminum rims that required some extra care. Underhood mechanical components were easy to identify and most could be replaced with basic tools.

To say a lot has changed since then is a gross understatement.

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And the technological revolution shows no signs of slowing down or ending.

Vehicles have continued to evolve with consumer tastes/budgets and some of the changes on the horizon are unimaginable when the pace of advancement in technology is considered.

Trying to predict the future of the automotive aftermarket is incredibly difficult, but the editors of MTD recognize the challenges facing their readers, so they asked for my thoughts on what tire dealers need to do today to prepare for the shop of tomorrow.

GENERAL PREPARATION

Before we can consider what the industry will look like in another decade or two, tire dealers and other automotive service providers must start getting ready for whatever comes next. That preparation starts with employee training. The companies with the best people will be the

most successful. The technicians who are responsible for working on vehicles will require constant training and some more than others. Today’s automobiles are a lot more complicated than they were in 1982.

By 2033, they could have the same degree of advancement in technology and more specifically, electronics.

I’ve spent a lot of time at my local community college over the past 15-plus years, with a front row seat for a training program offered by a major automotive manufacturer. In many ways, it’s “new model” training to help instruct area technicians on different procedures for troubleshooting the latest automotive technology. Just a few years ago, the most important tool in the toolbox was the laptop computer. Now it’s a tablet. Who knows what it will be in 10 years? Whatever it is, your auto repair technicians will require continuous training in order to service vehicles for each new model year.

MTD November 2023 10/17/23 3:53 PM

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The tire dealership of tomorrow While it’s unlikely that tire technicians will require the same level of ongoing training, they will have to be properly trained to avoid damaging tires, wheels and tire pressure monitoring systems (TPMS).

Consumer tastes continue to change and tomorrow’s vehicle owner will not be as forgiving when mistakes are made. Torn beads, scratched rims and damaged TPMS sensors are avoidable when technicians are properly trained and equipped. Poor training will eventually lead to fewer customers as bad Google reviews pile up.

ogy is a fraction of what is available today.

Something as simple as a headlight alignment can affect ADAS performance. Current systems like adaptive cruise control, autonomous emergency braking, forward collision and lane departure warning, blind spot and road sign detection and park assist are just a sample of the different driver assist systems that may need calibration after certain types of repair or adjustment.

IMAGE UPGRADES

Shop image is everything — now more than ever. Today’s vehicle owners can search for a service provider, schedule an appointment, pay for it and then write a review that everyone can see in seconds. Everything matters, as far as image is concerned.

Let’s start with the physical appearance of your building. The condition of the exterior and parking lot must match whatever is online. (More on that later.)

INTERNET ACCESS

It’s also time to address internet access in the shop. On the automotive repair and maintenance side, access to the internet is vital. Without it, getting the necessary information to diagnose and repair a vehicle’s problem will be difficult, if not impossible. (Within a decade, I believe it will be impossible, across the board.)

The cloud has become the place where all information is stored, updated and backed up on a regular basis. It’s the place where manufacturers make changes to repair procedures, which are updated in real time for the next technician that needs to access that information. No printing, no software updates and no downloads are now necessary. Just login and you have access to everything. Without easy, reliable access to the internet at your dealership, the cloud is inaccessible.

Your customers demand internet access, too. Offering free Wi-Fi to customers in your waiting room is a must.

Many dealers have already created private meeting rooms and areas where people can work remotely while their vehicle is being repaired. However, free Wi-Fi is only beneficial when it has the bandwidth to accommodate all users. If customers and technicians are using the same network, it will frustrate customers and slow down your techs. Accessibility of hi-speed internet will play a major role in determining the success of an automotive repair facility in the future.

THE CASE FOR ADAS

Upgrades are not limited to internet connectivity. Equipment upgrades will be needed with the growth of vehicle safety technology, like advanced driver assistance systems (ADAS). I recently purchased a used vehicle with collision avoidance technology. My car is only six years old and its driver assistance technol-

22 2311MTD_20-27_DealershipFuture.indd 22

Investing in a modern point-of-sale system can help streamline the sales process at the front counter, while systems and technologies that provide vehicle identification number-specific data can simplify work in the service bay.

Photo: MTD

As a result, tire dealerships and other automotive repair facilities must be properly equipped to repair and recalibrate ADAS. The tools and equipment required are on the market But they require a sizable investment, along with tech-savvy technicians and enough business, to justify the cost.

It reminds me of the early days of TPMS. The first TPMS tools that came out were some of the most expensive hand-tools the tire industry had ever seen.

There was a rush to get them in the shop and within a few years, they were obsolete because technology had changed so much in a short period of time.

We could see a similar situation with ADAS calibration equipment. Dealers need to make a business case before going down this path, so history does not repeat itself.

If the photos don’t match the reality when customers arrive, some people will just turn around. The same goes for interior waiting areas and restrooms.

Some customers won’t care, but those who do will take their business elsewhere, simply based on the image your dealership presents. They will think, “If a shop looks dirty and unprofessional, then it probably is. Why take a chance?” Some old-school shops may be the best at fixing cars, but a growing number of consumers won’t even consider a business that has a rougher image.

YOUR ONLINE PRESENCE

More importantly, your dealership must have a strong online presence, starting with its website. According to Forbes Advisor, 20.8% of global retail purchases MTD November 2023 10/17/23 3:53 PM

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The tire dealership of tomorrow are expected to take place online in 2023, with that number growing to 24% by 2026.

A projected $6.3 trillion global e-commerce market in 2023 will grow to more than $8.1 trillion by 2026. Companies like Amazon, Walmart, Apple, eBay and Target have the most visited websites, with Amazon leading the way at 37.8% of all e-commerce sales. People aren’t just using the internet for research. They’re using it to purchase goods and services.

Forbes Advisor also reported that mobile commerce, or m-commerce, sales, in the U.S. have grown from $360 billion in 2021, to $431.4 billion in 2022, with projections of $511.8 billion in 2023, $604.5 billion in 2024, and $710.42 billion in 2025.

In 2022, Pew Research revealed that 76% of Americans reported online purchases using a smartphone compared to 69% for a desktop or laptop computer and just 28% for a tablet. When broken down by age, 87% of the 18-29 group purchased something online with their mobile device and 92% of the 30-49 group used their smartphone to make a purchase. These are the automotive maintenance and repair customers of tomorrow. Having a website is crucial for marketing purposes, but having a website that is optimized for mobile devices is absolutely necessary to reach the online shoppers who use mobile devices to make purchases. A website that is not optimized for m-commerce will result in missed opportunities.

SHOP TOOLS AND POINT-OF-SALE

I remember when my family’s tire dealership got its first computer balancer back in the 1980s. While I was the bubble balance king, the electronic spin balancer was a definite upgrade to our shop and gave us a chance to upsell, as a higher-priced “computer balance” would produce a better ride than the old, single-plane static balance.

Within a few years, the bubble balancer was mothballed because everyone was opting for the computer balancer.

About the same time, we also introduced a computerized point-of-sale (POS) and inventory system.

we weren’t blessed with the best handwriting, so everything became much easier to read. Leveraging technology made us a better business.

The same holds true today. From the POS perspective, the amount of information that is available makes our first system look like the old handwritten invoices with adding machine tapes. As advanced as they are, modern POS systems continue to evolve as connectivity increases. There are companies that can connect to various POS providers and give participating dealers access to real-time sales data regarding tire sizes, brands and

SOCIAL MEDIA MARKETING

The final image frontier is social media.

According to Forbes Advisor and Statista, Facebook is the leading platform for social media shopping, with 50.7% of purchases.

Instagram was a close second at 47.4%, with YouTube in third at 33.9%, followed

by TikTok at 23.9%, SnapChat at 18.8% and Twitter (now X) at 18.5%. Using social media for marketing purposes is vital to reach consumers, but the ability to make a purchase from social media is going to be more important with the rise in social media influencers. The Digital Marketing Institute estimates that 49% of social commerce shoppers followed a social media influencer’s recommendation when making a purchase. Future consumers see an online image and expect it to be interconnected between the website, e-commerce, m-commerce and social media platforms. If it is, they make the purchase.

24 2311MTD_20-27_DealershipFuture.indd 24

Tire scanning tools, including devices that measure tread depth levels and other important metrics, are expected to become more common.

Photo: Discount Tire

In my earliest days at the shop, invoicing required a pen and a calculator, with the inventory listed on index cards. Every week, we would take the box of index cards and verify that the number on the card matched the number of tires in stock. We didn’t have hundreds of tire sizes back then, so it didn’t take too long to check inventory, but reconciling the taxes and sales revenue on the invoices was a long, painful process that required some skill on the adding machine. Everything had to add up and it wasn’t easy.

Then we got our first POS system.

Inventory updates were live and all the revenue was automatically separated into the correct accounts. As a family,

prices. They also can deliver useful market intelligence. (We just phone-shopped our competitors back in the day.)

Looking ahead, linking POS and other systems to the vehicle identification (VIN) number is the next frontier for shop management. Imagine a world where you scan the VIN and it automatically populates the invoice with the year, make and model, as well as the original equipment tire size, load index and recommended inflation pressures.

Diagnostic and repair information are also populated, complete with part numbers so every technician in your service bay has access to everything they need with one scan.

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The tire dealership of tomorrow That’s next level and it might be closer than you think.

License plate readers are already in place, so the moment you pull a vehicle into the bay, all of the customer’s information previously linked to the plate is available to the technicians. Drive-over tread depth scanners are another example of emerging, next-level technology that will appeal to a changing customer base. Technology is about connectivity and as more systems connect, it ultimately improves the consumer experience by saving them time and providing the best value.

Now more than ever, it takes a sizable investment to operate a tire dealership.

Having strong relationships with suppliers will be the best approach as the rate of technological change in vehicle systems continues to increase. Selecting the right partners is an important factor today in staying profitable. As technology evolves, the collective universe of automotive aftermarket suppliers will develop the tools, software systems and equipment that your business needs.

Partnerships with those companies that are on the leading edge of technology will keep you aware of what’s coming, so you can plan for the next phases of tools and equipment.

Keep in that that owning and operating a vehicle is going to get more expensive with each passing year. With new car prices high and used car inventories low, vehicle owners will do everything they can to keep them running as long as possible. There will be a growing incentive to keep up with basic maintenance services, so leveraging technology to improve the consumer experience and keep vehicles running longer will be a major factor in retaining existing customers and attracting new ones.

INVENTORY VISIBILITY

Because tire dealers have been using the “just in time” delivery and stocking model for so long, some customers have been trained to accept that they may have to wait for their desired tire to be delivered to their local dealership. Younger customers aren’t so patient.

They may shop around, but convenience is the magic word for a generation that probably doesn’t know Amazon started as an online bookseller. If they can’t see what they want on their smart phone screen, they will simply move on.

They’re not showing up at your door, ask-

26 2311MTD_20-27_DealershipFuture.indd 26

ing if a certain tire is in stock. Years ago, a study was published on tire buyers that divided them into three groups: brand, price and service. Most tire dealers need access to as many brands as possible to meet the needs of those buyers. Some tire buyers are looking for the lowest cost, so the retailer must have competitive, low-cost options available. Service buyers are going to take the recommendation of their maintenance provider because they trust that it is the best option for their vehicle. When this study was published, the above categories were roughly equal in size. Those percentages could be very different with a new generation of vehicle owners. But vehicle owners will not be stopping by your store without having first researched tire availability online.

‘Despite the increasing dependence on smartphones and the internet, people will still be the deciding factor.’

STAYING AHEAD ON LABOR

The absolute final piece of the puzzle, and most challenging, is labor. Tire service is not easy or clean by nature, but technology is making it easier and cleaner. Even with robotic tire changing machines and balancers with hydraulic lifts, there will always be a physical element to the job. Unfortunately, some of the next generation of workers are not interested in anything that requires physical effort, so the pool for automotive technicians is shallow, with a lot of competition. Technology is helping, but the unrealistic expectations of entrylevel workers out of high school with minimum wage employment are not going to make it any easier.

One thing I have learned is that you have to show younger workers a career path. If they start as a tire technician, then it can lead to other jobs in the industry. This requires investing in training and development. On the technician side, mechanical repair will require regular training and a higher level of commitment to develop the problem solving

and computer skills that are necessary with tomorrow’s automobiles. Turning wrenches will be only a fraction of what happens in future shops. Technicians will have to be made aware of how their job has changed and will keep changing.

What about sales and management positions? I’ve always said that it’s difficult to sell what you cannot explain.

Some dealerships have taken technicians and plugged them into sales and management jobs with great success.

The tire and auto repair industry is a “skills economy” and this business can teach skills that will always be needed.

Finding and keeping good people is the key to success.

CONCLUDING THOUGHTS

Nobody can predict what the industry will look like in 10 years. There are countless factors at play, with an unlimited number of variables that can change the direction of automotive maintenance and repair in a short period of time. As technology advances, the tire dealerships that are prepared to adapt can overcome new challenges.

First and foremost, you must be able to service the vehicle with the right tools, equipment and tires/components.

Next, you must have a collective image that appeals to consumers who shop with their smartphone. We live in a convenience-obsessed culture and tire/ automotive service is not considered convenient. Companies that can break down those barriers will be ones that have the best chance at developing relationships with the next generation of customers.

Despite the increasing dependence on smartphones and the internet, people will still be the deciding factor in this industry moving forward. Your employees are a reflection of your dealership’s brand, but the brand itself is determined by everything.

In the tire dealership of the future, everything matters. Vehicles and consumers are evolving as we speak — with both becoming more sophisticated, automated and dependent on technology.

There are still going to be hundreds of millions of cars to service. You must decide how you want to be positioned in your market and how you will stay competitive. ■ Kevin Rohlwing is chief technical officer of the Tire Industry Association. He can be reached at krohlwing@tireindustry.org

MTD November 2023 10/17/23 3:53 PM

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On the Rise

DIRECTORY

ON THE RISE 35 SUPERSTARS READY FOR THE FUTURE

By Joy Kopcha

I

n its eighth year, On the Rise is the only program in the tire industry dedicated to highlighting the young people propelling us into the future.

These bright minds are optimistic, enthusiastic and ready to tackle challenges and shape the future.

Many of these young people worked through the pandemic and cite it as the source of the biggest challenges they’ve overcome and their most difficult days at work. But they persevered. And they’re hungry to see what comes next. They know this industry is larger than the market of a single store, region or even country. Perhaps that’s why so many of them dream of waking up tomorrow with the ability to speak and understand multiple languages. They have a clear vision of the tire industry’s global impact.

This is not a group looking to kick back and watch others do the work as the industry revs up for its next transformation amid artificial intelligence, autonomous vehicles and electric motors. They want to be in the room, on the shop floor, and they want to be part of the brainstorming, discussion and ultimate problem solving.

This year, Modern Tire Dealer presents 35 bright superstars who are On the Rise. Sit back and get to know them in the next 20plus pages. Find their full profiles on www.moderntiredealer.com/ ontherise.

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42 VINCENT AUDO 36 JESSICA BELCHER 32 KATIE COFIELD 40 KEVIN DUNN 30 BILL DURIVAGE 29 ADAM GENUARIO 36 STEPHEN HALL 30 KAYLA HEIAR 48 LAURA KOCSIS 44 BETSY KOENIG SMITH 49 RAY LI 40 CAITLYN LYTLE 29 CHRIS MOODY 34 KYLE MOORE 36 RACHEL MORRIS 46 CAMBRIC MOYE 44 IRIS OCASIO 47 ASHLEY PARMLY 42 DANIEL PEREZ 34 ADAM PROBASCO 38 FRANCISCO RIVERO 48 AMELIA SAPIRMAN 32 TYLER SCOTT 38 PAUL SEPETJIAN 42 HEATHER SMITH 40 NICOLE SWALLOW 32 KRISTEN SWINEHART PATRICIA EMILIA

38 TRONCOSO VIDAL 44 BRIAN WEATHERSBEE 46 FALLON WILBER 29 TOBY WILLIAMS 30 JACK WISEMAN 34 CHRIS WOODS 48 MEGHANN WRIGHT 47 LIMA ZHENG

MTD November 2023 10/17/23 3:52 PM

ADAM GENUARIO

TOBY WILLIAMS

CHRIS MOODY

OWNER AMG ENTERPRISES DBA MIDAS TIRES AND AUTO SERVICE BRANFORD, CONN. | AGE: 34

CO-OWNER PELC TIRE & SERVICE SARALAND, ALA. | AGE: 34

DIRECTOR OF SALES CANADA TIRE INC. MONTREAL, CANADA | AGE: 36

Tell us about your current job and responsibilities. How do you spend your workday?

I primarily focus on administrative work, but it often requires me to wear multiple hats and handle a diverse range of tasks. On most days, I never quite know what challenges or projects I’ll be faced with until I arrive at the office. However, having an exceptional operations manager like Chuck Fuqua, who excels at handling the day-today operations, has been instrumental.

Chuck’s phenomenal work and expertise in managing the operational aspects of our business have allowed me to shift my focus towards working on the business as a whole, rather than being caught up in the day-to-day operations. This shift has greatly contributed to the tremendous success we have achieved.

What was your first job in the industry?

My first experience in the tire industry was at the retail level, working on the counter selling tires and service while looking after modernizing the digital footprint of the business. It was a quick and thorough education that gave me a great appreciation for the owner-operators that are the lifeblood of our industry.

In a single word, how would your friends describe you?

Hyper-focused.

What’s been the biggest surprise of your current job?

How many people I can talk to in a day!

What’s the biggest issue facing the tire industry?

Staffing, as it directly impacts our ability to maintain a desirable bottom line. As wages continue to rise, it becomes increasingly important to strike a balance between attracting and retaining quality employees while managing costs. Finding the right staffing levels and implementing effective strategies to combat turnover remain ongoing challenges.

What’s the biggest issue facing the tire industry?

Labor. We see it every day with our customers. Getting the people to be in the shop who will mount, balance and install tires is a huge challenge.

What attracted you to the industry?

What most attracted me to the industry was there was an opportunity to bring new energy into the business. Most of the shops I worked at seemed outdated, sluggish and inefficient. There were real opportunities to motivate people, improve processes and bring a fresh perspective to the business.

What is the biggest challenge you’ve faced in your career?

The biggest challenge I have faced in my career was constantly being challenged because of inexperience and age. It ended up being an advantage in the long run.

What is your biggest accomplishment in the industry?

The biggest accomplishment I’ve had is going from purchasing my first shop that was going out of business and doing less than $400,000 in sales per year to acquiring 14 locations doing just shy of $20 million in sales in six years. At first, I was turned down by multiple banks to get a loan and have since grown to operate a very healthy business.

If you could wake up tomorrow with one new skill, what would you choose?

I would choose a skill to create master technicians in a small period of time.

If you could switch jobs for a day, what job/who would you choose to swap with, and why?

I would switch jobs with Nick Saban, the football coach for Alabama. I love football and would love to coach an elite football team for a day. I would also like Nick Saban to move into my role and apply his principles to our team members. l w w w . M o d e r n T i r e D e a l e r. c o m 2311MTD_28-49_OnTheRise.indd 29

What goal did you set for yourself this year? Are you on track to reach it?

To identify talent and promote from within our company. To invest in our people and have an unwavering commitment to training. l

Who has had the biggest influence on your career?

I have had the pleasure of working with a number of great people, including Billy Granatstein and Gabriel Granatstein, who have had a huge impact on my development as a professional. They showed me the importance of building relationships, making meaningful connections and being accountable.

When you were a kid, what did you want to be when you grew up?

A National Geographic explorer. My mom had a subscription to the magazine and I was always captivated by the wonderful pictures and stories — and still am!

In a single word, how would your friends describe you?

Trustworthy. l

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On the Rise from the skill of being disciplined and better allocating my time to the right priority activities.

In a single word, how would your friends describe you?

Enthusiastic. ●

KAYLA HEIAR

BILL DURIVAGE

CHIEF ADMINISTRATIVE OFFICER MOORE TIRES ROCK FALLS, ILL. | AGE: 30

SENIOR PRODUCT STRATEGY MANAGER FOR AGRICULTURAL TIRES BRIDGESTONE AMERICAS INC. AKRON, OHIO | AGE: 32

What was your first job in the industry?

Balancing cash drawers and reconciling accounts payable statements in middle school.

Who has had the biggest influence on your career?

My parents, Jeff and Angie Moore. I grew up in the business they fearlessly started in 1991 and am honored to get to help continue their legacy.

What is your biggest accomplishment in the industry?

Leading our company in successfully navigating a total software change after over 20 years on the same systems. I have heard many nightmare stories about software changes, but with planning and amazing partners and employees, we made it a smooth transition.

What goal did you set for yourself this year? Are you on track to reach it?

Our business has doubled in the last four years. This year my goal was to hire an HR director and controller to help us continue to grow and develop our culture. It has been a big focus to streamline our departments for highest efficiency. We hired an excellent HR director this past spring and are currently in the process of onboarding a third-party company to help us with further oversight into our financials.

What do you expect to be doing 20 years from now?

Continuing to carry on my parents’ legacy by making Moore Tires one of the top independent tire dealers in the country!

In a single word, how would your friends describe you?

Determined. ●

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What attracted you to the industry?

Honestly, I sort of fell into the tire industry. I studied agricultural engineering at Ohio State University. Leading up to graduation, I was looking for a career in the field of agricultural equipment design while hopefully allowing me to stay near family and friends in Ohio.

There just happened to be an opening in the agricultural division at the Bridgestone Americas Technolog y Center in Akron.

What is the biggest challenge you’ve faced in your career?

I would say I’m currently living my biggest challenge in my career. I am leading a project to realign our product portfolio, which has historically been siloed into regions around the world, into a single global portfolio. While I have a solid technical background, I am having to develop business acumen while coordinating confl icting interests on an international scale.

Tell us about your family.

My wife and I met in college and have been married for six years. We have two boys: a two-year-old and a onemonth-old. My oldest son is obsessed with tractors — and calling out their tires. My youngest son is still working to figure out how to sleep through the night — hopefully soon.

If you could wake up tomorrow with one new skill, what would you choose?

I would choose better time management.

I spread myself too thin across many activities and find myself accomplishing tasks at the last minute. I could benefit

JACK WISEMAN DIRECTOR OF BUSINESS ANALYTICS AND OPERATIONAL INTELLIGENCE SUN AUTO TIRE & SERVICE INC. MESA, ARIZ. | AGE: 30 What was your first job in the industry?

During college while on summer and winter breaks, I worked at Tate Boys Tire & Service as a tire technician. Th is enabled me to supplement my football scholarship while keeping up conditioning. I can still remember my fi rst diesel oil change on a F-350 and lacing the scrap tires in the sweltering 110-degree Oklahoma heat!

What is the biggest challenge you’ve faced in your career?

That would be the successful integration of 192 retail locations in 18 months.

When Sun Auto acquired Tate Boys Tire, I joined their fi nance department as the third member of the team. I took on the responsibility of integration finance manager, owning and coordinating the integration of these retail locations, in addition to supporting the chief fi nancial officer with the monthly reporting packages.

What’s been the biggest surprise of your current job?

The biggest surprise is how much fun I am having creating and implementing new processes! The challenge of continued expansion while maintaining excellence, industry-leading sales and producing quality service offers a unique and exciting opportunity. ● MTD November 2023 10/17/23 3:52 PM

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On the Rise Tell us about your family.

My family is the foundation of who I am.

My parents live in Oklahoma, and I have two younger brothers — a doctor and a Navy fighter pilot. We may all live in different parts of the country, but we are all very close and continue to cheer and support each other.

If you could switch jobs for a day, what job/who would you choose to swap with, and why?

If I could switch jobs— and know how — I would switch with my younger brother who is an active Navy fighter pilot. Flying a F-18 Super Hornet for a day would be the thrill of a lifetime. ●

When you were a kid, what did you want to be when you grew up?

I wanted to be an author and write fantasy.

What’s the biggest issue facing the tire industry?

Not an issue but an opportunity — things will continue to develop with fleets and how they’re being utilized in the market.

It will be critical for manufacturers, distributors and retailers to figure out the best go-to-market strategy to service this expanding channel.

What goal did you set for yourself this year? Are you on track to reach it?

I had a goal to visit as many new national parks as possible and will end up hiking Acadia, Zion and Bryce Canyon by the end of the year. ●

What is your biggest accomplishment in the industry?

When Goodyear purchased Cooper, I was asked to co-handle the change management responsibilities of the integration for North America. This project required significant collaboration across many departments and team members. I assisted with external communication to our customer base, internal communication to our associates, coordinating strategic project teams and organizing training opportunities. It was a significant effort that I’m proud I was able to be part of.

Tell us about your current job and responsibilities. How do you spend your workday?

I’m the general manager for the sellout organization. I manage four teams of associates that call on car dealerships, fleets, retailers and independent dealers. I spend much of my time supporting my sales team internally at corporate and working on hiring our next generation of talent.

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If you could wake up tomorrow with one new skill, what would you choose?

If I woke up tomorrow with one new skill, it would be supersonic, precision Excel skills. That would be extremely useful in the data analytics world! But, for fun, I would be able to cook plain rice correctly!

Seriously, it’s an issue in the Cofield home.

Risotto, I got it. Plain rice, not so much. ●

TYLER SCOTT

KRISTEN SWINEHART GENERAL MANAGER FOR SELLOUT GOODYEAR TIRE & RUBBER CO. AKRON, OHIO | AGE: 36

was going to be a teacher. Then, I went through student teaching and decided jail sounded better. All the while, I was selling tires, and decided that natural, nostalgic, second-nature skill was just what I needed to do.

KATIE COFIELD DIRECTOR OF SALES AMERICAN TIRE DISTRIBUTORS INC. (ATD) CULLMAN, ALA. | AGE: 37 What attracted you to the industry?

I was born and raised in the tire industry.

My parents owned an ag and farm supply store in rural Mississippi, that also handled truck and tractor tires.

Tell us about your current job and responsibilities. How do you spend your workday?

As the director of sales, I am responsible for the daily, monthly and yearly sales for all customers. I oversee sales training, create programs and processes to enable sales and mentor our sales team on best practices. I am responsible for four distribution centers and all goals tied to each.

When you were a kid, what did you want to be when you grew up?

I wanted to be the first female president.

Then I learned I was too opinionated and honest to be in politics. Next, I

REGIONAL SALES MANAGER NOKIAN TYRES INC. CHICAGO, ILL. | AGE: 33 What was your first job in the industry?

My first job in the industry was as a commercial service technician in Cambridge, Ontario. In this position, I operated out of a service truck, primarily responsible for the maintenance, replacement and repair of a wide range of tires, including those used in over-the-road, agriculture, medium truck, forestry and industrial applications. Additionally, I gained valuable experience during a brief period when I worked at an Oliver retread factory, where I had the opportunity to rotate through different stations involved in the tire retreading process.

Who has had the biggest influence on your career?

I’m fortunate to have two individuals who have had a significant influence on my career. The first is Eric Szpyt, whom I met shortly after taking my first sales job. Eric served as my Cooper Tire & Rubber Co. representative and imparted invaluable lessons about core sales principles. The second is Keith Harris, who was my first MTD November 2023 10/17/23 3:52 PM

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On the Rise manager at Nokian Tyres Canada. Keith challenged me to explore the boundaries of my capabilities, pushing me to take on tasks I never thought possible.

What is your biggest accomplishment in the industry?

My most significant accomplishment in the industry has been conducting hundreds of in-person training seminars, where I had the privilege of educating thousands of tire industry professionals.

What sets this accomplishment apart is the diverse array of professionals I’ve had the opportunity to educate, spanning both Canada and the USA.

Spanish, and being fluent in it, would be great and beneficial.

What’s the biggest issue facing the tire industry?

I still think it’s supply chain issues — from materials to make the tires to distribution of products.

When you were a kid, what did you want to be when you grew up?

A baseball player. l

It was a two-bay garage and our family of four lived upstairs for a few years.

That space now holds the offices of all four of us. My dad has been in the tire business since he was 15 years old and when he decided he wanted to start his own company, he roped my mom in to be what is now the chief financial officer of a six-store, 150-employee operation. What astounds me still to this day is what they were able to accomplish as founding business owners and as parents. In the midst of all the stress and pressure, young Kyle and my sister, Kayla, never had a clue. l

What do you expect to be doing 20 years from now?

Selling tires! l

KYLE MOORE OWNER AND REGIONAL MANAGER MOORE TIRES ROCK FALLS, ILL. | AGE: 29

ADAM PROBASCO PART OWNER AND MANAGER CONRAD TIRE AND AUTO INC. CONRAD, IOWA | AGE: 33 Tell us about your current job and responsibilities. How do you spend your workday?

My current job is in the shop as well as the office. It’s a wide range of responsibilities, from pricing tires and other jobs to scheduling or working out in the shop performing service jobs and tire work.

What’s been the biggest surprise of your current job?

I would say the volume of work we can do and the reach of our customers. We are the only shop in the town we’re in and customers sometimes travel 20 to 30 minutes or more for our service which is so appreciated.

If you could wake up tomorrow with one new skill, what would you choose?

A new skill I’d love to have would be to be able to speak another language. Learning

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What is the biggest challenge you’ve faced in your career?

Being a second generation of any industry carries its own challenges, although I think it has likely been both my biggest challenge and also what’s helped me achieve my success. When people — customers and employees — know you are second or third generation, they will instantly assume you are incompetent or entitled. The only way to work around that is to work harder.

What’s been the biggest surprise of your current job?

The biggest surprise in this role was the shift in where the feeling of success needs to come from. When I was the store manager of one location, it was cut and dry for me: happy employees, high sales, high profits. When I achieved those, the gratification was instant.

Overseeing multiple stores is different though. You never really feel fully caught up. There tends to always be a fire or struggle somewhere. So I kind of lost that self-gratification.

Tell us about your family.

My parents started this company in 1991.

CHRIS WOODS TRUCKSTOP CHANNEL MANAGER BRIDGESTONE AMERICAS INC. BRENTWOOD, TENN. | AGE: 36 What was your first job in the industry?

I was a supply chain analyst with Bridgestone’s OTR division.

What’s been the biggest surprise of your current job?

How much I am enjoying it! This was my first role where the sole focus is the customer. I have met and presented to various customers in numerous former roles, but being able to connect daily with several other industry leaders has been very rewarding and I have made some great friends in doing so.

Tell us about your family.

I have been married to my wife, Caroline, for eight years. We are expecting our first child in January —a little girl! Caroline and I are diehard University of Tennessee fans, as we both graduated from there. We enjoy traveling and live music.

If you could switch jobs for a day, what job/who would you choose to swap with, and why?

If I was anything, I would love to be a caddie for a top PGA tour player. Golf has MTD November 2023 10/17/23 4:41 PM

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On the Rise always been a huge hobby of mine. Traveling the world playing the best courses would be incredible to me!

What’s the biggest issue facing the tire industry?

I would say sticking to prices. As costs continue to rise, although we have seen some flattening across the industry, the pricing piece between manufacturers, dealers, and ultimately fleets continues to be vital across the board. l

basic auto repair to advanced diagnostics and automotive theory.

What’s been the biggest surprise of your current job?

The biggest surprise has been how much really goes into establishing an effective training program and the amount of work it takes to get employees in an organization of our size to want to invest in their careers.

What’s been the biggest surprise of your current job?

My biggest surprise is how such small inputs can have such a large impact on a tire — its appearance, performance and its uniformity. A couple millimeters of gauge, component placement or a splice location can all change the end result of a tire.

When you were a kid, what did you want to be when you grew up?

I wanted to be a train conductor. I always thought it would be cool to take the scenic routes on which train tracks are built across the country. l

What goal did you set for yourself this year? Are you on track to reach it?

Every year, both in and out of work, I challenge myself to learn something new and get out of my comfort zone. I accepted a new position as a leader within my company, which has been a transition.

Outside of work, I conquered my first black trail on skis. l

JESSICA BELCHER

RACHEL MORRIS

QUALITY BUSINESS LEADER ON THE YIELD TEAM GOODYEAR TIRE AND RUBBER CO. LAWTON, OKLA. | AGE: 27

DIRECTOR OF CUSTOMER EXPERIENCE TIREHUB LLC COLUMBUS, OHIO | AGE: 37

STEPHEN HALL L2 MANAGER CHAPEL HILL TIRE HILLSBOROUGH, N.C. | AGE: 37 Who has had the biggest influence on your career?

Marc Pons, the owner of Chapel Hill Tire.

Marc is the type of leader that gives you the tools to succeed and sets you free to manage with your own style. He enabled me to use my creativity and allowed me to try new things with my teams. That ultimately led to a lot of success at the store locations I have managed. Marc has supported me in every endeavor I have pursued with Chapel Hill Tire, from managing multiple locations to starting a training department for the company.

Tell us about your current job and responsibilities. How do you spend your workday?

I oversee two Chapel Hill Tire locations and oversee all training for the organization. I have a manager at both locations that I check in with regularly and strategize with to grow sales, increase efficiencies and facilitate employee growth and development. I do all the new hire training for service advisors in the company. I also have a training director who reports to me, who conducts all of our new hire training for technicians and organizes training with current employees, from

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What was your first job in the industry?

I started in our Topeka, Kan., plant right out of college doing new tire development on large haulage tires ranging from 25 inch- to 63-inch rim diameters. Walking into the plant on my first day was surreal, seeing equipment and tires bigger than I ever imagined.

What is your biggest accomplishment in the industry?

I am the lead tire engineer for the implementation of a new tire building machine in the Americas region. I worked to adapt our current building and design standards with this new technology. Because we are phasing in 24 of these new machines and replacing old equipment along the way, the pressure is on to produce tires that perform well in the field while running with high yield and low waste in the plant.

Lawton has always been a proving ground for new equipment.

Tell us about your current job and responsibilities. How do you spend your workday?

I’m the director of customer experience at TireHub and my role is to improve the customer experience by working across all departments to identify customer and Hubber (employee) pain points, highlight and escalate issues, implement process improvements and measure success with a focus on improved customer satisfaction. I gather feedback from customers and Hubbers to find opportunities to exceed expectations, then work across all teams at TireHub to help achieve our customer experience goals.

What’s been the biggest surprise of your current job?

This was a newly created role at TireHub when I started my current job, so I wasn’t sure what to expect going into it. One of the most pleasant surprises for me was MTD November 2023 10/17/23 3:52 PM

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On the Rise just how much I learn every day. I get the opportunity to work with every department and it’s a great way to fully understand how things are interconnected.

If you could wake up tomorrow with one new skill, what would you choose?

I would love to wake up and be fluent in American Sign Language.

What’s the biggest issue facing the tire industry?

From artificial intelligence to EVs to point of sale systems, technology is always changing and evolving. It can be challenging and costly to keep up with that evolution. l

FRANCISCO RIVERO DIRECTOR OF PROGRAMS INDEPENDENT TIRE DEALERS GROUP (ITDG) SAN ANTONIO, TEXAS | AGE: 39 What was your first job in the industry?

It dates back to 2001. I had just gotten out of high school and got my first job as a passenger and light truck tire store front (counter) salesman.

What attracted you to the industry?

I believe it’s what kept me in the industry that is more interesting. As a 17-yearold who was trying to help with bills around our home, I wanted to be the best at what I was doing. Reading, learning and understanding the tire business is what made me fall in love with it. The unlimited amount of treads, applications and brands opened a new universe to me.

What is the biggest challenge you’ve faced in your career?

Leaving my home country at 20 yearsold, coming to America and trying to stay in the tire business — that was an adventure filled with challenges. I had to take a few steps back and start from scratch. Going through all the ranks gave

38 2311MTD_28-49_OnTheRise.indd 38

me the opportunity to learn the business inside and out. I would do it all over again if I had to.

If you could switch jobs for a day, what job/who would you choose to swap with, and why?

This is a tricky one. I know most people would say president of the United States, or a sports superstar, but I would love to switch jobs with my wife one day. I know my appreciation for what she does would multiply immediately! Plus, I would love for her to experience a day in the tire industry and all the fun she misses! l

If you could switch jobs for a day, what job/who would you choose to swap with, and why?

I would switch with someone at Doctors Without Borders. Being a doctor and helping other people get better is already noble. Having the chance to do that, while getting to know a different culture and other peoples' realities, would be great.

When you were a kid, what did you want to be when you grew up?

A ballet dancer. When I was seven years old, I began dancing ballet as an afterschool activity. At first, I wasn’t very good at it, but I had a very good teacher and I loved practicing with my friends. l

PATRICIA EMILIA TRONCOSO VIDAL TECHNOLOGY TEAM LEADER GOODYEAR TIRE & RUBBER CO. DANVILLE, VA. | AGE: 33 What is the biggest challenge you’ve faced in your career?

Being able to adapt to change. In the past three years, I’ve had three roles in two different countries and I’m now leading two areas as a technology team leader in Danville. I’ve had to adapt to a different culture, learn the process, lead quality technicians and engineers — while giving results. This constant change also keeps me motivated. I like to learn and improve to become a better version of myself.

Who has had the biggest influence on your career?

I believe both my father and husband have been the biggest influences in my career. My dad from the beginning has been a great role model. I still call him for advice. I met my husband at work and we just became a team. He supports my career like his own and gives me constant advice and strength.

In a single word, how would your friends describe you?

Persevering.

PAUL SEPETJIAN HEAD OF PRIVATE BRANDS TURBO WHOLESALE TIRES ARCADIA, CALIF. | AGE: 27 In a single word, how would your friends describe you?

Ambitious.

What was your first job in the industry?

Warehouse employee. I loaded and unloaded containers.

What attracted you to the industry?

My dad established Turbo Wholesale Tires, so I’ve been somewhat involved in the family business for as long as I can remember.

Tell us about your current job and responsibilities. How do you spend your workday?

My duties differ day to day, but my title is head of private brands, so I’m involved in product development, purchasing, marketing/branding and so on. Over 75% of our business is our private brands. It’s all about brand appreciation and creating established brands.

MTD November 2023 10/17/23 3:52 PM

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On the Rise What’s been the biggest surprise of your current job?

How challenging it has been, but also how rewarding it has been. I get to learn so much about the industry and work with such good mentors.

What goal did you set for yourself this year? Are you on track to reach it?

The goal was to create 300 active new SKUs in eight different segments and we are on pace to reach that goal. However, the main goal was to continuously improve the brand and continue embedding the brand in peoples’ subconscious. l

In a single word, how would your friends describe you?

Thoughtful.

What’s been the biggest surprise of your current job?

How important each step is in orchestrating the final product. Each one of us plays an important part in delivering a quality product.

tire was something very amazing to me that I wanted to be a part of.

What goal did you set for yourself this year? Are you on track to reach it?

Learning about investing money and to start investing. Yes and yes! l

When you were a kid, what did you want to be when you grew up?

Mayor of the City of Buffalo. l

KEVIN DUNN STORE MANAGER SOUTHERN TIRE MART LLC ATMORE, ALA. | AGE: 39

NICOLE SWALLOW RAW MATERIAL INVENTORY MANAGER SUMITOMO RUBBER USA LLC BUFFALO, N.Y. | AGE: 37 What attracted you to the industry?

I grew up in a home without any cars — my mom and stepdad chose not to drive.

But my dad was a car and motorcycle mechanic and enthusiast. So while I would say I was originally drawn to what I didn’t have, it also gave me something to connect with my dad.

Tell us about your current job and responsibilities. How do you spend your workday?

I analyze age, stock level and planned usage of raw material inventory. My day involves a mix of brainstorming, problemsolving and ensuring our inventory can support the production plan, while also working closely with various departments to support development projects.

What is your biggest accomplishment in the industry?

My proudest accomplishment so far is professional growth. I joined Sumitomo as an associate buyer, and then moved up to buyer, then senior buyer and now raw materials inventory manager.

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CAITLYN LYTLE PRINCIPAL INDUSTRIAL ENGINEER — COMMERCIAL PLANT LEAD BRIDGESTONE AMERICAS INC. LEBANON, TENN. | AGE: 30 What is the biggest challenge you’ve faced in your career?

In December 2020, I was promoted to area business manager over the curing and final department at the manufacturing plant. I was the youngest area business manager that has worked at that plant.

This was a stretch role. but I was up for the challenge.

If you could wake up tomorrow with one new skill, what would you choose?

Hands down, being able to speak Japanese! Working in a Japanese company, this is one skill I wish I had and that I would like to learn very soon.

What attracted you to the industry?

I always had ambition to work for a manufacturing company, I enjoy working in an environment where you see a product from start to finish. Also, growing up in a family within the auto industry, we were raised to have appreciation of all the details that go into allowing the world to travel.

Tires are a huge piece of this. The detail that goes into creating and designing a

What attracted you to the industry?

Larry Saltee and Cass Moore came into the John Deere dealer where I worked.

They began to tell me about the industry and all the opportunities that the local GCR store had available. They introduced me to Bill Dutter, He took me under his wing, teaching me about the industry.

I would say ag sales attracted me to the industry, as well. I have always worked with farmers here in our local area.

What is the biggest challenge you’ve faced in your career?

When I took the job with GCR, there were three employees, including me. I was told if the store didn’t make money by the end of the year, they would close the store. The store was $20,000 in the negative when I took the job. At the end of the year, we had made $100,000.

Who has had the biggest influence on your career?

I have a big list of people who have helped me grow in my career. Previous coworkers and current coworkers have helped me along the way. The leadership at Southern Tire Mart has had a great influence on my career. Southern Tire Mart purchased the GCR locations in 2019. They continue to push us to grow. They allow us to run our store as if we owned them. I can’t say enough good things about Tommy and Jim Duff. l MTD November 2023 10/17/23 3:52 PM

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A Visit with CEOs and Presidents The California Tire Dealers Association appreciates our supportors:

11th Annual

CTDA / 1-800EveryRim New Year Lunchon

OEM Wheels

Dick Gust TIA CEO

Keith Jarman Mike Spagnola 23-24 TIA President SEMA President AME International & CEO

Chris Barry CTDA President ITDG

*Sponsorships Available Complimentary lunch and raffle for retail tire dealers Speedy Program - Lots of Networking!

January 18th, 2024 Steven’s Steakhouse 5332 Stevens Pl, Commerce, CA 90040 10:30am Social Period - Lunch 11:45am - Adjourn 12:30pm

*For more info or to RSVP, contact: Billy Eordekian: Billy@1-800EveryRim.com Chris Barry: CBarry@ITDGUSA.com Marc Connerly: MConnerly@ConnerlyandAssociates.com

Tillery Consulting

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On the Rise would enable me to automate daily tasks and decisions in an ideal scenario. l

Tell us about your family.

I have been married for 14 years to my wonderful wife and we have two sons, ages seven and four. They keep me busy. l

DANIEL PEREZ PURCHASING ANALYST TIRE GROUP INTERNATIONAL LLC MIAMI, FL. | AGE: 33 What was your first job in the industry?

My first job in the tire industry was as a warehouse worker. I began in August 2016, working in the warehouse at Tire Group International, loading, unloading and picking tires.

In a single word, how would your friends describe you?

Hustler. I’ve always been the go-getter that strives to grow and succeed through my entrepreneurial skills.

What’s the biggest issue facing the tire industry?

The tire industry faces significant challenges, including the underutilization and insufficient analysis of data for accurate future forecasting. In the truck tire sector, several factors, such as the shortage of drivers and reduced demand for trucking, greatly impact supply and demand dynamics. Even industry giants like Yellow Corp.’s Chapter 11 bankruptcy filing contribute to these issues.

What goal did you set for yourself this year? Are you on track to reach it?

Earn more, save more and spend less. I have achieved that both at home and in the office — focusing on strategic buying at the grocery store and even from factory floor inventories! I practice what I preach and it has paid off.

What do you expect to be doing 20 years from now?

I hope to be running a business with my son in the tire industry!

If you could wake up tomorrow with one new skill, what would you choose?

I would choose machine learning. This

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VINCENT AUDO QUALITY TEAM MANAGER GOODYEAR TIRE & RUBBER CO. TOPEKA, KAN. | AGE: 35 Who has had the biggest influence on your career?

The biggest influence on my career was hands down Chuck Fornicola. As my mentor he showed me how to detach from a problem to enable me to get an objective and unbiased view of the situation. This is a lesson that I have learned and has become a core part of my management style. The ability to see issues from as many points of view as possible affords us a more synergistic solution to employ.

Thirteen years later, Chuck remains available and continues to develop me as a person as well as a professional.

Tell us about your current job and responsibilities. How do you spend your workday?

I am currently responsible for the quality of the build, cure and final finish areas of the Topeka plant Radial Truck Business Center. I spend my day ensuring the quality of systems and improving plant key process indicators.

In a single word, how would your friends describe you?

Engaging.

What’s the biggest issue facing the tire industry?

The biggest issue I see facing the tire industry is the increase in customer expectations. Whether it be through rolling resistance, appearance, connectivity with the vehicle, renewable tires, nonpneumatic — each of these expectations requires us to keep pushing innovation and not settle for the status quo.

HEATHER SMITH ASSISTANT MANAGER MR. TIRE/MONRO INC. BRIDGEVILLE, DEL. | AGE: 38 What was your first job in the industry?

I was 18 years old and worked in the Walmart Tire and Lube Express changing oil and tires.

Tell us about your current job and responsibilities. How do you spend your workday?

I spend my days helping out guests with tires, maintenance work on their vehicle, building estimates and building relationships with our guests. I help keep the flow of the shop — ordering parts (and) keeping in contact with guests about their vehicles.

What’s been the biggest surprise of your current job?

The biggest surprise of my current job has been building lasting relationships with our guests and having them leave reviews for our store.

In a single word, how would your friends describe you?

Caring.

If you could switch jobs for a day, what job/who would you choose to swap with, and why?

If I could switch jobs for a day, it would be with my brother. I would love to learn how to do vehicle customizations.

When you were a kid, what did you want to be when you grew up?

When I was a kid, I wanted to be a marine biologist or a police officer. l MTD November 2023 10/17/23 3:52 PM

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RalsonTires.com

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© Ralson Tires, llc. All Rights Reserved.

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On the Rise

IRIS OCASIO

BRIAN WEATHERSBEE

BETSY KOENIG SMITH

SENIOR PRODUCT PLANNING AND DEVELOPMENT BRIDGESTONE AMERICAS INC. NASHVILLE, TENN. | AGE: 30

SENIOR MANAGER OF SALES OPERATIONS AND ENABLEMENT TIREHUB LLC MILTON, GA. | AGE: 37

PRODUCT AND SUSTAINABILITY MARKETING MANAGER GOODYEAR TIRE & RUBBER CO. AKRON, OHIO | AGE: 34

What is the biggest challenge you’ve faced in your career?

My biggest challenge would have been pivoting into a new role a week before COVID-19 shutdowns. Starting a new job is always an adjustment, but going from fully in-person to fully remote adds complexity. Having most of my experience in supply chain and then pivoting into product planning was difficult and a change of pace I wasn’t expecting, but ultimately, the payoff has been worth it.

Tell us about your current job and responsibilities. How do you spend your workday?

My job is to hit curve balls and anticipate what is coming next. I describe what my team and I do by saying we are the guts of the sales team. Everything we do should be centered around helping our sales team and our customers be more successful.

What’s been the biggest surprise of your current job?

How exciting developing new tires really is. I love the cross-functional nature of the work!

Tell us about your current job and responsibilities. How do you spend your workday?

I’m a senior product planner in product planning and development with Bridgestone Americas, focusing on CUV, SUV and truck products. I spend much of my time evaluating trends and opportunities for my patterns. Recently, I’ve been focused on my favorite segments of the industry: all-terrain and max traction.

What’s been the biggest surprise of your current job?

How passionate the team and the consumers are in the light truck space. The energy surrounding the on/off-road market has been contagious. I find myself checking out trucks, how they look and what tires are on them and now I spend an inordinate amount of time on “off-road TikTok,” which counts as research — or so I tell myself.

If you could switch jobs for a day, what job/who would you choose to swap with, and why?

I would switch to our CEO’s role to approve funding for my passion projects. l

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What attracted you to the industry?

I grew up in the industry, watching and learning from my granddad. I saw what it meant to his customers to have a trusted place for their vehicle needs. I knew I wanted to play a large role in helping our reps help dealers like my family, which still owns and operates my granddad's shop.

What is your biggest accomplishment in the industry?

The thing I am most proud of is creating the sales process that we follow at TireHub. This process is now engrained in our culture, vocabulary and is a key part of our go-to-market strategy.

If you could wake up tomorrow with one new skill, what would you choose?

My serious answer would be to speak another language, but I’d also really love to join a pick-up game of basketball and be able to dunk. To see the shock on everyone’s face would be priceless!

What’s been the biggest surprise of your current job?

Energy is contagious. If I come into the office in a great mood and interact with a positive, 'control what you can control, let's believe' attitude, then people react well to that. l

What was your first job in the industry?

I began my career within Goodyear’s procurement organization, initially managing indirect spend that supported the operations of our manufacturing plants within North America. I enjoyed building connections with the plant purchasing managers and supply base.

Tell us about your family.

My grandma lived with my family growing up and continued to live with my parents until recently, when she died at the age of 102. It was a true pleasure having her around for so long, and we often reflected on the considerable change she experienced throughout her long lifetime.

If you could switch jobs for a day, what job/who would you choose to swap with, and why?

I’d try out a day as an olive farmer in Portugal! My husband and I traveled there this year, and the Douro Valley, where there are grapevines and olive trees as far as the eye can see, was my favorite place.

When you were a kid, what did you want to be when you grew up?

A figure skater or a teacher.

Tell us about your current job and responsibilities. How do you spend your workday?

Within product marketing, I collaborate cross-functionally on a daily basis to make our portfolio strategy become a reality. l MTD November 2023 10/17/23 3:53 PM

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On the Rise

CAMBRIC MOYE SUPPLY CHAIN PLANNING MANAGER NOKIAN TYRES INC. CHARLOTTE, N.C. | AGE: 31 What was your first job in the industry?

My first exposure to the tire industry was here at Nokian Tyres, but my first real exposure to supply chain management was at Toyota North America during my second internship after graduating from college in 2017. This internship through NASCAR placed me with Toyota in Hebron, Ky.

Tell us about your current job and responsibilities. How do you spend your workday?

My current role encompasses a blend of short-term and long-term planning responsibilities. I initially joined the company as a demand planner, which involves optimizing forecasts and product assortments, conducting monthly demand reviews with our sales management team and long-term planning for both new and ending product lines. I’ve assumed additional duties within supply planning. These responsibilities include overseeing product allocations, monitoring daily fill rates to ensure alignment with customer demands, tracking daily production to address backorders promptly and handling various ad hoc tasks as they emerge.

If you could switch jobs for a day, what job/who would you choose to swap with, and why?

The head groundskeeper for a Major League Baseball team. I would get to enjoy not only free baseball, but also the ability to turn grass and dirt into a captivating work of art.

When you were a kid, what did you want to be when you grew up?

Baseball player. I made it professionally, but not all the way to the MLB unfortunately. l

FALLON WILBER RETAIL AND COMMERCIAL MANAGER PURCELL TIRE & RUBBER CO. ELKO, NEV. | AGE: 31 What was your first job in the industry?

My first job was an office administrator at Global Mining Products in Elko, Nev, where I learned about the variety of equipment in the mining industry. I assisted local tire businesses by selling wheels, hardware and torque wrenches.

What is the biggest challenge you’ve faced in your career?

Starting in the industry as a young female has its hurdles. It was difficult to have customers, coworkers and vendors not take me and my insights seriously.

However, the tire community has fantastic veterans and newcomers who are willing to offer support and guidance when needed.

In a single word, how would your friends describe you?

Resolute.

What’s the biggest issue facing the tire industry?

Supply chain and inflation have become major issues and unfortunately, it is difficult to meet every consumer’s needs.

What’s been the biggest surprise of your current job?

As a female, it is surprising how many female customers compliment that I have taught them something about their vehicle and the services provided at our location.

I have been told multiple times that they have not been spoken to with a similar level of respect. l

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and my parents are farmers. My mother has never been to school in her life, but she believes education is important. My parents spared no effort to support my education and I became the sole kid who graduated from university from among 20-plus cousins.

LIMA ZHENG ENGINEERING MANAGER GOODYEAR TIRE & RUBBER CO. HIMEJI, JAPAN | AGE: 38 What is your biggest accomplishment in the industry?

I led a bladder inserter project that reduced cost by $10 million scale with an alternative approach, while avoiding huge tire loss during the project execution period.

Tell us about your family.

I was born in a small village in China

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What’s the biggest issue facing the tire industry?

We still rely on physical labor to perform heavy work from tire-making processes while the labor shortage issue is spreading worldwide.

When you were a kid, what did you want to be when you grew up?

Engineer.

What goal did you set for yourself this year? Are you on track to reach it?

A specific automation feasibility study to benchmark the tire industry. Yes, we finished the study and are on track to make it true. l

ASHLEY PARMLY SENIOR MANAGER, PRODUCTION CONTROL AND INDUSTRIAL ENGINEERING BRIDGESTONE AMERICAS INC. MURFREESBORO, TENN. | AGE: 30 What attracted you to the industry?

I was drawn to manufacturing and the tire industry due to the fast-paced environment. With such a large operation and complex process, I knew I would never get bored and would face a different challenge each day and that excited me.

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On the Rise Tell us about your current job and responsibilities. How do you spend your workday?

I manage a team of industrial engineers and production schedulers in one of Bridgestone’s TBR manufacturing plants.

I guide this team toward our goal of ensuring we have the resources to meet demand, while optimizing production processes and systems. On a daily basis this involves inventory management, contingency planning, efficiency tracking and kaizen improvements.

What’s been the biggest surprise of your current job?

The amount of employee turnover we are seeing in both hourly and staff employees since COVID-19.

If you could wake up tomorrow with one new skill, what would you choose?

The ability to small talk and network.

What do you expect to be doing 20 years from now?

I expect technology and the digital transformation of the tire industry to be vastly different 20 years from now than what it is today. I would love to be a part of that journey and in a position to mentor young engineers to evolve with this change and give back to society. l

MEGHANN WRIGHT REGIONAL SALES DIRECTOR — ONTARIO DISTRIBUTION STOX BARRIE, CANADA | AGE: 38 What is your biggest accomplishment in the industry?

I am proud to have played a key role in two acquisitions over the past four years, ensuring that the customer and employee experiences throughout the acquisition and conversion process were managed efficiently and with a personal touch. I am also pleased to be an advocate and

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champion of women in automotive and I am working hard to develop relationships with other industry leaders who share this passion to help foster a welcoming and inclusive industry for the next generation of bright, dynamic young women.

What was your first job in the industry?

Warehousing and delivery at a tire distributor.

Tell us about your family.

My family are my biggest cheerleaders.

They have watched me evolve in my career path and supported me along the way.

My husband works in the industry as a licensed automotive technician, which leads to a lot of industry chatter around the dinner table. I’m also mom to two bright teenagers — one of whom has no interest in driving, at least for now!

If you could wake up tomorrow with one new skill, what would you choose?

To always have the right words at the right time.

When you were a kid, what did you want to be when you grew up?

A foreign ambassador or diplomat — in the way they were portrayed in the movies. Secrecy and mystery, bodyguards, black tie affairs, high-level national security meetings and all! l

of engineering and I saw it as a challenge to continue to learn and grow within the company and industry.

If you could wake up tomorrow with one new skill, what would you choose?

If I could wake up tomorrow with one new skill, I would want to wake up with the ability to understand and speak any language. This way I would never have a language barrier and could converse with anyone in their native language.

What’s the biggest issue facing the tire industry?

Right now, the biggest issue I see facing the tire industry, manufacturing specifically, is staffing. From global to plant level and everywhere in between there is a shortage felt across the industry. Our jobs as managers and leaders are to maintain production and quality, while trying to find the right people to fill any open roles to continue producing the high-quality products we are known for.

When you were a kid, what did you want to be when you grew up?

I wanted to be one of two things: a professional soccer player or a Disney Imagineer working on new ride design and implementation. l

LAURA KOCSIS AMELIA SAPIRMAN STAFF ENGINEERING MANAGER GOODYEAR TIRE & RUBBER CO. FAYETTEVILLE, N.C. | AGE: 27 What is the biggest challenge you’ve faced in your career?

The largest challenge I have faced in my career so far is when I moved from Tall Timbers, Ohio, to Fayetteville, N.C. after Goodyear acquired Cooper Tire.

The opportunity arose in Fayetteville to move into the project management side

SENIOR MANAGER OF ADVANCED POLYMER SCIENCE BRIDGESTONE AMERICAS INC. AKRON, OHIO | AGE: 36 What attracted you to the industry?

I was attracted to the tire industry initially because I would have the ability to innovate in scientific areas, like polymers and rubber, while expanding my technical experience.

The possibility that new technology, which I could have a hand in creating, would make a global impact is exciting and attracted me to working at Bridgestone.

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What was your first job in the industry?

My first job was as a polymer scientist at Bridgestone Americas. I joined after I completed my doctorate in organic chemistry at the University of Pittsburgh in 2014.

What is your biggest accomplishment in the industry?

I am a member of the team that developed PeakLife polymer, which was released as part of the ENLITEN technology package in Turanza EV Grand Touring and Potenza Sport AS tires this year. PeakLife is a next-generation polymer technology that enhances tread resistance to wear, aiding in extended tire life.

If you could wake up tomorrow with one new skill, what would you choose?

I would love to be more creative! Being of a scientific background, I gravitate so much toward data and processes, but I feel like developing my creative side would allow me to gain a whole new perspective on science and management. l

RAY LI SUPPLY CHAIN EXPERT GOODYEAR TIRE & RUBBER CO. SHANGHAI, CHINA | AGE: 37 What attracted you to the industry?

Goodyear’s brand is the key that attracted me to the industry. China has become the largest tire consumption country in the world. Meanwhile, tires are deemed as an essential part among a vehicle’s spare parts. Along with the booming vehicle sales in China, tires will become more competitive and prosperous in the future.

What is your biggest accomplishment in the industry?

I successfully developed a new planning model in our commercial business and improved sales forecast accuracy through collaborative planning methods for the sake of on-time order fulfillment. I also recently was a project leader to cooperate with China’s largest e-commence company to work out the new business model launching this year. This is a new business for Goodyear to directly serve the e-commence customer and directly run the customer’s new business model to gain more market share.

In a single word, how would your friends describe you?

Humble.

If you could switch jobs for a day, what job/who would you choose to swap with, and why?

I would swap with my son in order to let him know your dad’s working is not easier than your studying. ■

Profitability in 2024 begins with productivity in 2023.

Take advantage of the most accurate, efficient and trusted alignment systems in the business.

Scan or visit hunter.com/align

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Consumer tires

Passenger tire sizes are far from ‘topping out’ EVS, VEHICLE AGE WILL ADD EVEN MORE SKU COMPLEXITY

“It’s not unreasonable to think that previously niche fitments could become mainstream,” says Karl Jin, divisional head, product and pricing, PCLT, Apollo Tyres Ltd. “If anything, we are on the verge of a wave of engineering and design innovation that will bring a host of different sizes to the mainstream mix.”

Photo: Apollo Tyres Ltd.

By

Mike Manges

A

ccording to the Tire & Rim Association, there are 390 P-metric/ passenger tire sizes, based on rim diameter, in the U.S. market.

Two new 17-inch sizes, four new 18-inch sizes, five new 20-inch sizes, three new 21-inch sizes and three new 22-inch sizes — all P-metric — were introduced in 2022.

Have passenger tire sizes reached a saturation point? Not even close, according to most tire manufacturers and distributors. In fact, the emergence of more electric vehicles (EV) — as well as the increasing age of the U.S. vehicle population — will add more SKU complexity.

David Poling, vice president, research and development and technical, Giti Tire

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(USA) Ltd. says his company believes that size proliferation “will continue for the foreseeable future since it has been that way for many years. There is constantly a shift to larger rim diameters, which by its very nature brings new sizes, but doesn’t eliminate the need for older sizes for vehicles that, on average, are 12 years old.

“There seems to be no incentive for original equipment manufacturers (OEMs) to limit the number of possible SKUs,” says Poling. “There are some OEMs that seem to lower speed ratings, which seems odd, but this also drives up complexity. If the market is 90% V-rated and an OEM is asking for T-rated, then we are forced to make multiple SKUs in

that line. On the bright side, there also are OEMs that are requesting the same size for a single platform that crosses multiple vehicles. Hopefully, the need for OEMs to reduce their own complexity in cost will at least slow down the trend of size proliferation.”

Apollo Tyres Ltd. doesn’t believe the U.S. passenger tire market has reached saturation when it comes to sizes “as the vehicle product mix in North America continues to evolve, especially with more electric vehicles added to lineups,” according to Karl Jin, divisional head, product and pricing, PCLT, Apollo.

“For example, we just saw Cadillac introduce its all-electric Escalade IQ, MTD November 2023 10/17/23 3:52 PM

which features a factory 24-inch wheel as standard equipment. While that size may be an outlier today, it is an OE fitment for an important and popular nameplate.

That’s how trends begin.”

“We don’t believe we’ve reached the saturation point” when it comes to SKUs, says Ryan Parszik, manager, product planning, Yokohama Tire Corp.

“With all the new EVs coming out in the next five years, there are going to be new requirements for these vehicles in both raw size and carrying capacity that will lead to new sizes and variations of existing sizes.”

John Wu, product strategy director, Maxxis International-USA, says Maxxis is seeing the trend toward more SKUs “persist at the original equipment level.

We believe it will continue industry-wide with electrification. Packaging restraints are different with EVs, so automakers can explore different designs and may eventually need different sizes due to appearance, performance, packaging, load rating and other reasons. Some

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Yokohama Tire Corp. does not believe passenger tire sizes have reached a saturation point. “We do still see the tire size count growing in the future,” says Ryan Parszik, manager, product planning, Yokohama.

Photo:Yokohama Tire Corp.

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Consumer tires EV models even feature multiple powertrain options, which can also increase the sizing mix.

“We believe that at some point, automakers may be motivated to use the same sizes for cost and development time reasons, but we expect proliferation to continue for the time being. It’s difficult to limit tire sizing when there are multiple powertrain options and a need to visually separate different trim levels.”

“We expect to see a continued proliferation of passenger sizes in the U.S., driven

by OEMs and the expansion of trim levels,” says Rachel Swenson, senior product planner, Bridgestone Americas Inc.

their target. The complexity is up to the OEM. If they can dream it and someone can make it, the sky’s the limit.”

“One example” of increased complexity “is the launch of the Michelin Defender LTX M/S2 LT275/50R24, which is targeting new vehicle entries in the market,” notes Russell Shepherd, technical communications director, Michelin North America Inc., who adds that the increase in the median age of used vehicles also contributes to size proliferation and complexity. “This results in fewer sizes becoming obsolete.

“The market (also) will become more complex because of the introduction of new standards, like C-metric tires for the

Inc. product manager. “What we are seeing is a trend that OEMs have all but abandoned smaller rim sizes in favor of larger ones. Pirelli, as a tire OEM, has adapted to that pattern, so our focus for producing passenger tires is in line with what the market is demanding — larger, more customized tire sizes and solutions.”

While “legacy” wheel sizes, like 17 inches, remain “relatively popular, auto OEMs are pushing the envelope by pushing rim sizes as high as 23-inch and 24-inch,” says Lee. “This trend obviously has an impact on how tire OEMs, like Pirelli, respond.”

‘It’s difficult to limit tire sizing when there are multiple powertrain options and a need to visually separate different trim levels.’

John Wu, product strategy director, Maxxis International-USA

“The proliferation of various vehicle drivetrains, especially in the EV segment, (also) has caused growth in passenger tire sizes,” says Jayden Lee, Pirelli Tire North America product manager. “With the addition of EVs, (passenger tire sizes have) become significantly more complex as we have to cater to diverse targets and preferences.”

Photo: Pirelli Tire North America

“At the same time, we are seeing that people are keeping their vehicles longer than they ever have, so some older sizes are sticking around longer than they would have in a previous era.”

Within existing sizes, Bridgestone continues to see “the shift to high-rim diameter sizes and we are seeing old sizes dropping at the bottom, so it’s certainly not stagnant. As a tire supplier for the OEM, the OEM approaches us for a specific size and we build a tire to meet

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commercial market and high load capacity tires, which permit the increased load index for a given dimension compared to other tires in the market.

“Because they are introduced as OE fitments, there is rarely a choice (at the replacement level), other than an exact match of the tire, particularly the load index,” he says.

“The U.S. market has reached a saturation point, but only in certain respects,” says Jayden Lee, Pirelli Tire North America

“We expect continued proliferation of passenger tire sizes within our passenger product portfolio,” says Mike Park, assistant director of marketing, brand division, Tireco Inc. “Drivers such as advancements in electric and autonomous vehicles, which may have unique tire requirements, could create demand for new sizes in our existing passenger product lines.

Consumer demand for specific features, such as enhanced fuel efficiency, can also lead to the development of specialized tire sizes.

“OEM trim levels and OE tire size requirements can become exceedingly complex,” says Park.

“With continuous advancements in vehicle technology, manufacturers are introducing more diverse models and trim levels. Each of these variations might have unique tire specifications to ensure optimal performance, safety and fuel efficiency.”

MTD November 2023 10/17/23 3:52 PM

There are a number of reasons why American Kenda Rubber Industrial Co. Ltd. believes passenger tire sizes have not reached a saturation point, says Brandon Stotsenburg, vice president, automotive division, Kenda.

“First, as vehicle lifecycle continues to expand, older sizes remain in the market far longer than past generations, while new sizes with larger wheel diameters continue to grow.

“Second, as the market will be in a transition from internal combustion engines to EV applications, there is going to be an increasing number of SKUs that may offer the same size, but will vary in speed rating, load capacity and construction to optimize for either type of vehicle.

“Third, OEMs will continue to follow consumer trends for larger wheel diameters, while optimizing chassis performance for the vehicle, with a focus on projected fuel economy and for EV vehicles, rolling resistance to extend range.”

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“OEM trim levels and OE tire size requirements can become exceedingly complex,” says Mike Park, assistant director of marketing, brand division, Tireco Inc. “With continuous advancements in vehicle technology, manufacturers are introducing more diverse models and trim levels.”

Photo: Tireco Inc.

9/15/23 3:29 PM

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Consumer tires Auto manufacturers will continue to offer additional trim options, “as their research shows their target audience desires promised applications,” says Stotsenburg.

“As an example, Ford currently offers 19 options on the 2023 Bronco — not including the Sport — with six OE tire fitments.

“Of those OE options, four are metric sixes, while two are light truck designations. All of the OE options have aftermarket upgrades for plus one and plus two fitments, which will be pursued, depending on intended vehicle use.”

Chris Tolbert, director of sales for Trimax Tire, expects to see a continued proliferation of passenger tire sizes, “but we prefer to think of it as the proliferation of sizes in sub-categories,” such as all-season, UHP all-season, EV, all-weather and winter.

And as the EV market evolves, “this could create additional sizes adapted to lower rolling resistance, braking, handling, noise and vehicle weight.”

Product proliferation isn’t exclusive to the tire industry, says Joaquin Gonzalez Jr., president of Tire Group International LLC.

sizes, specs or treads come onboard, they ultimately end up replacing existing ones.

“So we do see continued evolution,” says Gonzalez. “A clear example is the EV tire market. As those vehicles become more mainstream, you will begin to see more application-specific tires for that segment.”

The passenger tire segment is “not even close” to reaching its SKU limit, says Phillip Kane, CEO of Turbo Wholesale Tires.

“With EV mandates looming and a continued march by manufacturers away

‘With EV mandates looming and a continued march by manufacturers away from cars to truck and CUV platforms, vehicle OEMs will continue to create new sizes.’

Phillip Kane, CEO of Turbo Wholesale Tires

“The passenger tire segment is constantly evolving,” says Joaquin Gonzalez Jr., president of Tire Group International LLC. “Factors like vehicle diversity, technological advances, regulatory changes and market trends are some of the key drivers in size proliferation.”

Photo: Tire Group International LLC

Jay Lee, product planning director for Nexen Tire America Inc., says auto manufacturers “are expanding their trims to maximize vehicle sales and satisfy various consumer demands.

“In the case of the top-tier trim levels, vehicle performance, including engine power, is maximized. Therefore, the tires installed on these models are larger and wider compared to the base model trims.

Additionally, with the introduction of EV models, there is a growing need for more and larger tires.”

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“If Baskin-Robbins was starting up today, it would need more than 31 flavors!

Over the last 10 to 15 years, consumers have become accustomed to a certain level of ‘have it your way,’ when it comes to purchasing vehicles — hence there are so many trim packages in a single vehicle. I do not see this trend slowing down.

“The passenger tire segment is constantly evolving. Factors like vehicle diversity, technological advances, regulatory changes and market trends are some of the key drivers in size proliferation. As new

from cars to truck and CUV platforms, vehicle OEMs will continue to create new sizes, both as a necessity and as a means of differentiating themselves from competitors.

“We’re just starting to see the impact of electric on tires. As new and different electric vehicles — focused on new and different end user benefits — are introduced, expect tiremakers to have to respond with new and different tires” to deliver desired consumer outcomes.

“If you compare today’s sizes, they are much more numerous than 30 years ago,” says Ara Tchaghlassian, CEO of Wholesale Tire Distributors.

“Without a doubt, we will see continued expansion of sizes and rim diameters, widths, load carrying capacities and many other variables.

“With the growing popularity of SUVs, the use of autonomous vehicles on the horizon, the many new entrants into the vehicle manufacturing space and the rapidly changing preferences of the motoring public, we are sure to see more complexity.” ■ MTD November 2023 10/17/23 3:52 PM

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Retail sales

Salespeople can accelerate trust with customers by asking the right questions at the right time.

Photo: MTD

The art of persuading others

THE POWER OF TRUST, WORDS AND CHOICE WHEN LEADING AND SELLING By

Mike Townsend

I

t has been said that convincing someone to buy from you and influencing an employee to produce more than required are similar in nature.

In my years of coaching, I have come to the conclusion that this is true, even though by definition, the two things are different. For example, influence will most often induce change, whereas persuasion means to sway others’ decisions.

The common denominator, however, is that both require a sales process to make them a reality. Let’s take a look at how we persuade others intentionally through the sales process.

First, let’s look at the power of a question. When we engage employees in the leadership process or engage customers and prospects in the sales process, we must understand that the only way to gain buy-in and to make sure they are listening is to ask questions.

When we ask the right question at the right time and in a way that does not come across as an interrogation, we can

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be 100% sure they are listening. Many times, we think about what we initially want to say, but instead of coming out and saying it to another person, we form our thoughts into the best question that will get our point across.

The benefit of asking the right question with the right timing and teeing up the question with the current situation is simple: trust is accelerated!

Questions need to be asked in such a manner that the other person will buy the idea you are selling.

Furthermore, good questions should get the person to talk, so you can learn more about their needs and how you, as a business leader or a salesperson, can meet their expressed needs.

Often, there are needs hidden behind an originally expressed need that can only be uncovered through disciplined question-asking.

Once this has been mastered, leaders can lead at a higher level, salespeople can sell more effectively, employees become

more engaged, teams function better and profits can skyrocket. And even better, the foundation is laid for maximum trust.

THE POWER OF TRUST

Leadership and sales training books are replete with explanations of the value of trust. Trust is vital to get employees to do more than expected and it is the foundation that will convince a customer to buy more from you. When trust is present, the machine runs smoother.

The challenge is that most leaders and salespeople don’t know how to gain trust and don’t understand when they have lost trust. We hear it every day when we analyze phone calls, during which a salesperson has asked the wrong questions, made the wrong statements and/or used an inappropriate word.

In situations like this, we immediately hear the customer end the call by telling the salesperson they will “let them know” or that they plan to get more options and/or a second opinion. For the unexperienced MTD November 2023 10/17/23 3:52 PM

salesperson, this is confusing and many times demoralizing because they unintentionally lost a sale.

The same thing can happen between business leaders and employees. Consider a business owner or leader who meets with an employee about not being on his or her cell phone when working the sales counter, only for that leader to answer or check his own phone a few minutes later.

This will cause the employee to not trust the leader. Sometimes it will cause the employee to become disgruntled and disengaged.

In leadership and sales, there is an “influence wake,” much like a boat moving across a lake. When you engage an employee or a customer, you influence them positively or negatively.

When dealing with employees or customers, the relationship must be present and healthy. For this to happen, you have to be intentional with every interaction. When asking for more results from employees or more sales from customers without having

‘During our conversations, we have heard potential customers decide not to buy because a salesperson used the wrong words or the wrong arrangement of words during an interaction.’

a relationship with them, a leader will be seen as a tyrant and a salesperson will be seen as being “high pressure.”

To have a relationship that produces no results, a leader will often be seen as a doormat and a salesperson will be viewed as someone who can’t be trusted.

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This is precisely why we must be intentional with every word we speak to employees, as well as customers.

THE POWER OF WORDS

As we mentioned before, during our consultations, we have heard potential customers decide not to buy because a salesperson used the wrong words or the wrong arrangement of words during an interaction.

Instead of telling a customer, “You’ll have to wait until next week” or “I don’t have that tire in stock,” it’s advisable to substitute a more positive statement, such as, “I can schedule your installation for 10 a.m. next Tuesday or next Wednesday at 10 a.m. Which one works best?”

Tire dealers have seen thousands of dollars of sales evaporate because the salesperson said to the customer, “I can’t get that tire.” In all interactions with customers, negative words like, “can’t,” “don’t” and “will not” should be avoided. You should only communicate what you “can” do.

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Retail sales Making an “I can” statement, in fact, can calm many customers.

Also make sure you are calculated with the use of your words and avoid using filler words when you try to accelerate trust. Business leaders must also choose their words carefully and project positivity when talking with employees.

It’s easy to lose trust and damage productivity by not using the correct words.

Good employees do not respond to being barked at or told to do things. But they do respond to being asked and they love to be thanked. We train our clients to always look for opportunities to say thank you.

You may think that I am being too detailed and picky, but learning to speak well and use the right words are a necessity due to the number of choices the consumer has in most markets.

I once had a salesperson tell me that he had 37 competitors within three miles of his location.

Situations like that can be problematic for tire dealers who have no clear vision

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or training program, as well as no sales or leadership process.

THE POWER OF CHOICE

How can you convince employees to spend that extremely valuable currency called “extra effort” on you, your business and most importantly, your customers? And how can you persuade customers to spend their hard-earned money with you?

When customers call your store, they are letting you know that if you can execute on what we have discussed in this article, they will do business with you, assuming your price is somewhat competitive.

The fact that they chose to call you is already a positive, even though it’s not a done deal until an installation and/or appointment is scheduled. You now have an opportunity to woo the person who is calling you.

How do you accomplish this? One way is to simply give the customer at least two options for products and appointment

times. Why? Many customers hate to waste their time waiting. (Very few salespeople know how to capitalize on this.)

Harvard Business Review did a study on how people make choices in situations.

When one option is offered, the adoption rate is typically only 10%. However, when Option A and Option B are offered, the adoption rate skyrocketed to 75%, with Option A receiving 38% and Option B 37% The same psychology is true when motivating employees. Leaders should always give at least two options in any scenario.

If more owners, managers and salespeople remember that people will always have a choice, they will be motivated to learn more, train more and fight harder for the sale or the adoption of an idea. Ask the right questions, choose your words wisely and present choices. ■ Mike Townsend is the owner of Townsend Strategies, a sales and leadership training and marketing company that advises independent tire dealerships. To contact Townsend, email him at mike@townsendstrategies.com.

2/22/23 10:27 AM

MTD November 2023 10/17/23 3:52 PM

EV tires

Hankook Tire America Corp. includes knurling technology inside the grooves of its iON EV tire line, which effectively reduces tread pattern noise during road contact by narrowing the atmospheric air path.

Photo: Hankook Tire America Corp.

What’s in EV tires that makes them so quiet?

TIREMAKERS DISCUSS SOUND-DEADENING TECHNOLOGY — AND EV TIRE REPAIR By

Madison Gehring

M

any electric vehicle (EV) owners expect a quiet ride. Tires engineered and built for EVs contain a variety of technologies, including components designed to minimize noise. Tire manufacturers discuss sound-deadening technology in this MTD exclusive.

MTD: Why do you build sound-dampening materials into your EV tires?

Brad Robinson, senior product manager, Bridgestone Americas Inc.: With EVs, tires account for upwards of 30% of cabin noise in the absence of internal combustion engine (ICE) noise, which makes tires a bigger factor in the overall customer experience. EVs are heavier and tend to have stiffer suspensions, which can impact how resonant sounds from the road and tire are transmitted to the cabin. These factors were incorporated

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into the Bridgestone Turanza EV, when determining the design and technology features we wanted to include.

Dave Reese, vice president of product development, North America, Goodyear Tire & Rubber Co.: As consumers adopt more EV technology and adapt to the new powertrain, we’re all discovering the differences between EVs and ICE vehicles. Both produce noise as they move around, but EV noise is different and in the absence of traditional engine noise, some road noise can be more noticeable when considering the quiet ride we expect with EVs. My team’s challenge at Goodyear is to find ways to lessen the noise and find a balance between the road, the tire and the EV powertrain.

Moonki Cho, product manager, Hankook Tire America Corp.: In an ICE vehicle, powertrain noise accounts for

50% of the noise heard in total and road noise emitted by the moving vehicle takes up 30%. In an EV, on the other hand, electric motor noise accounts for 15%, road noise for 40% and wind noise from high-speed driving for 30%. This places newfound importance on the tire’s ability to combat road-going feedback or tire droning, which becomes even more pronounced at highway speeds. Excessive road noise can be a distracting and fatiguing element for drivers and passengers.

Walter Chen, product planning specialist, Maxxis International-USA: The integration of sound-dampening materials and design into EV-specific tires serves the crucial purpose of reducing tire noise.

This reduction in tire noise becomes more noticeable in electric vehicles due to the absence of engines, transmission and exhaust noise. It is particularly prominent in base EV models.

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Russell Shepherd, technical communications director, Michelin North America Inc.: First, not all EVs require sound- dampening material in their tires. More and more vehicle manufacturers are offering EVs with original equipment tires that are without acoustic materials. Examples include Cadillac, Chevrolet, Porsche and Hyundai. For original equipment manufacturers and consumers who are interested in sound-dampening materials, it’s primarily used to reduce cavity noise.

Steve Bourassa, director of products, North America, Nokian Tyres Inc.: Low rolling noise is a top priority of EV drivers, since electric vehicles make virtually zero noise apart from wind resistance. Noise reduction consistently ranks alongside safety and low rolling resistance as EV drivers’ selfstated biggest needs from their tires. Noise becomes even more noticeable when silent EV winter tires transition from snowcovered roads to asphalt surfaces. It makes sense to help drivers find a solution that delivers a more comfortable ride, without sacrificing safety or range.

Ian Coke, chief technical officer, Pirelli Tire North America Inc.: We do all of this to break up the cavity noise. We try to keep the cavity noise around 190- to 230-hertz for United States passenger vehicles. Nowadays, tires have gotten bigger, so we are really playing into the hands of that cavity noise, especially because the EV does not have any type of engine noise to cover tire noise. The importance of covering the noise that comes from the tire — (the) cavity, as well as air-born and structureborn noises — becomes more important.

Wayne Cuculuzzi, vice president of products and product development , Sa i lu n Ti re Americas: We didn’t have the need to add sound-dampening materials. With some of the extra considerations you must take in when adding

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dampening material, we chose not to. But the reason EVs are more sound-conscious is there is no engine noise to help mask the sound of road noise.

Sailun Tire Americas says its ERANGE EV tires use the company’s SilentTread technology and a variable pitch sequence for a quiet, comfortable and safe ride.

Photo: Sailun Tire Americas

Bridgestone Americas Inc. utilizes its QuietTrack technology in the Bridgestone Turanza EV in order to mitigate noise.

Photo: Bridgestone Americas Inc.

In Maxxis Victra Sport EV tires, Maxxis InternationalUSA incorporates its proprietary Silent Technology to effectively reduce tire cavity resonance and minimize overall tire noise.

Photo: Maxxis International-USA

MTD: What sound-deadening materials/components do you build into your EV tires and can you describe how that technology works?

Robinson (Bridgestone): We applied our proprietary QuietTrack technology to the Turanza EV, which mitigates noise from the tire. The main feature are the Quiet Tracks themselves, which are in-groove tracks to help prevent high-frequency noise by breaking up the resonant frequency. We also apply non-chamfered slots on shoulder ribs and an optimized three-pitch sequence in the tread block to mitigate pattern noise.

Reese (Goodyear): Goodyear has many years of experience equipping tires within the commercial, consumer and off-highway segments with technology to minimize road noise, including a combination of tread design and tire construction.

Our EV-specific consumer tires, the ElectricDrive and the ElectricDrive GT, feature Goodyear SoundComfort Technology to reduce road noise. Tires with SoundComfort Technology are designed with a built-in sound barrier that acts like an internal sound-deadening cushion. Our technology applies an opencell polyurethane foam element to the inner surface of the tire, reducing vehicle interior noise. This acoustical barrier reduces air vibrations and dampens the interior noise while driving.

Cho (Hankook): Across our iON family of products, we have placed a considerable emphasis on implementing the latest noise-proof technology to accommodate EVs’ absent engine noise and heightened road-going feedback. This includes applying knurling technology inside the grooves, which effectively reduces tread pattern noise during road contact by narrowing the atmospheric air path.

This extends to our optimized multi-pitch sequencing at the tread surface, in which sound can be reduced further by varying the size and number of pitches. Finally, by applying a noise-absorbing foam material inside the tire’s carcass, cavity noise can be reduced by up to nine decibels.

MTD November 2023 10/17/23 3:52 PM

Chen (Maxxis): In our Maxxis Victra Sport EV tires, we incorporate Maxxis Silent Technology to effectively reduce tire cavity resonance and minimize overall tire noise. This technology involves the application of a layer of sound-absorbing foam to the inner liner of the tire. The foam is specifically designed to absorb and dampen tire cavity noise, resulting in a quieter and more comfortable ride. Furthermore, the closed shoulder tread pattern design of our Maxxis Victra Sport EV tires helps isolate and minimize tire pattern noise caused by contact with the road surface. This design feature further enhances a quiet and enjoyable driving experience for EV owners.

Shepherd (Michelin): Michelin Acoustic Technology (MAT) significantly reduces interior noise, effectively reducing vibrations caused by the road, resulting in a significant reduction of interior noise. A custom-designed polyurethane foam solution muffles noise resonance, which allows the drivers and passengers to benefit fully from hands-free communication devices

Bourassa (Nokian): We employ acoustic foam in the inner liner of a tire to help stifle cabin noise in the tire’s air cavity at the frequencies that are most irritating to drivers. We call it SilentDrive Technology.

We use it in our EV-specific winter tires, the Nokian Hakkapeliitta 10 EV studded and R5 EV non-studded. Studded tires are particularly known for being noisy and the acoustic foam helps absorb the vibration caused by (the) studs’ contact with the road. The foam can deaden that noise by as much as nine-decibels, depending on the height of the sidewall and size of the tire.

Goodyear Rubber & Tire Co.’s EV-specific consumer tires, the ElectricDrive and the ElectricDrive GT, feature Goodyear SoundComfort Technology to reduce road noise.

Photo: Goodyear Tire & Rubber Co.

while lessening driver fatigue on long drives.

MAT even dampens interior noise when driving on changing road conditions.

Coke (Pirelli): We call our noise canceling technology the Pirelli Noise Cancellation System (PNCS). A polyurethane foam structure is used in the PNCS, which is applied to the inside of the tire (and) stuck to the liner. There are a couple of different dimensions, depending on the size of the tire and its circumference, but we use either an automatic ring that goes all the way around the tire — with a few

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EV tires Cuculuzzi (Sailun): The ERANGE EV tire was designed with sound in mind.

We were able to optimize the sound by designing the tread design and rubber compound to keep the sound minimal.

The sound aspects of (the) ERANGE EV are based on a tread design and rubber compound optimized for low noise.

ERANGE EV tires use proven SilentTread technology and a variable pitch sequence for a quiet, comfortable and safe ride, backed by proven lab and road testing to meet the highest of standards.

MTD: Can EV-specific tires be repaired in the event of a standard nail-hole injury in the tread area, despite the fact they contain sound-dampening components?

Nokian Tyres Inc. incorporates its SilentDrive Technology, an interior foam layer, to Nokian Hakkapeliitta 10 EV studded and R5 EV non-studded tires.

Photo: Nokian Tyres Inc.

spots of spaces between the foam — or we use a multi-piece structure. So if you look at the tire and split it at the rim, you can either see two pieces of foam (the automatic ring) with a gap of 50 millimeters between the two pieces or you’ll see a multi-piece ring, which is made up of about seven pieces of foam.

Photo: Michelin North America Inc.

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Bourassa (Nokian): Yes, the repair process is the same for EV-specific tires. The only difference would be the need to cut the section of foam where the damage occurred, being careful not to damage the inner liner in the process. The small amount of acoustic foam removed will not make a significant difference in sound absorption following the repair.

Robinson (Bridgestone): We’re proud of the fact that the Turanza EV is quiet and comfortable enough to not require technologies that could impact repairability. It can be repaired as long as it’s safe to do so.

Reese (Goodyear): Our EV-specific tires can be repaired with a standard nail-hole injury, just as you would with any other tire. The built-in, open-cell polyurethane foam element that acts as the sound barrier won’t be impacted by a normal puncture.

Cho (Hankook): Repairing EV-specific tires in the event of a standard nail-hole puncture in the tread area is generally possible, but it depends on many factors, including the size, location and angle of the puncture. If a repair on the EV tire is advisable, it is important that the process adheres to the Tire Industry Association’s guidelines for proper tire repair.

Chen (Maxxis): Despite the presence of sound-dampening foam in our EVspecific tires, they can still be repaired in the event of a standard nail-hole injury in the tread area. The repair process involves cutting and removing a section of foam, repairing the tire using industry-standard procedures and then re-adhering the foam back into the tire.

Michelin North America Inc. uses its Michelin Acoustic Technology to reduce vibrations, which can cause interior vehicle noise.

Reduction Acoustic Foam Tires. Given the relatively small area required for repairs, consumers should see no difference in sound dampening afterward.

Shepherd (Michelin): Michelin Acoustic Technology can be repaired from punctures in the tread. In fact, the U.S. Tire Manufacturers Association has repair procedures, like the Tire Information Service Bulletin (TISB) 52 — Noise

“We call our noise canceling technology the Pirelli Noise Cancelation System (PNCS),” says Ian Coke, chief technical officer for Pirelli Tire North America. “A polyurethane foam structure is used in the PNCS, which is applied to the inside of the tire (and) stuck to the liner.”

Photo: Pirelli Tire North America Inc.

Coke (Pirelli): Yes, you can repair them.

You must carefully remove the sponge because you don’t want to leave foam debris in the hole plug. It takes time to remove the sponge and prepare the liner to put the plug in. But these tires are repairable.

Cuculuzzi (Sailun): Because we do not build in any special physical components, our tire is as fixable as any tire. Others that use sound dampening foam or insulation are much tougher to fix, as the foam/insulation must be removed, tire fixed and then foam/insulation replaced exactly as-is/ as-was or you risk ride disturbances. ■ MTD November 2023 10/17/23 3:52 PM

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Telle T ire & Aut o Center s

Buyer’s market

HOW TELLE TIRE BECAME AN ACQUISITION EXPERT By

Mike Manges

“When we acquire a business, I say, ‘Yes, we bought your equipment and bought your customer list and now have this nice building, but the biggest asset we’ve acquired is people,” says Aaron Telle, president and CEO of Telle Tire & Auto Centers, which is based in Webster Groves, Mo. “‘And the people within these walls determine if (the business) will be successful.’”

Photo: Telle Tire & Auto

W

hen Aaron Telle became president and CEO of Telle Tire & Auto Centers in 2011, the dealership had one store, which dated back to 1942. Telle Tire, which is based in Webster Groves, Mo., now has 23 locations.

Twenty-one of those have been acquisitions. (The company has acquired three tire dealerships this year.)

Telle Tire has become an expert at acquiring other tire dealerships and integrating them into its system, but that didn’t happen overnight. Telle says he’s learned a lot of lessons along the way — some of them tough ones.

“We’ve learned that operating a fourbay shop takes as much time and energy as operating an eight-bay shop that has the potential to do, say, an additional $1.5 million in sales. So now we look for certain number of service bays. The store has to be the right size. And the market” where a store is located “is extremely important.

“On the sales side, we look for a certain (amount) of revenue,” he says. “We really want to see at least $1 million annually. And while the (selling) price has to be right, at the end of the day,” intangibles also are a factor in Telle Tire’s evaluation process.

The most significant intangible is the adaptability of new employees to Telle Tire’s existing culture. And sometimes you can’t get a good handle on that until after the purchase, says Telle.

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SECURING BUY-IN

Convincing new employees to buy into Telle Tire’s way of doing business requires a concentrated, systematic effort on the part of Telle and his leadership team, which includes his wife, Laura. That means traveling to a newly acquired store and sitting down with each employee.

“That first week (after an acquisition), we’re having one-on-one conversations — just making sure we get to know each other,” says Telle. “Nobody likes change.

Everyone assumes that change is going to be negative. Some of those individuals who are sitting in those chairs when we come in are skeptical of us. Early on, I give a speech about who Telle Tire is, why we’re successful and why culture is everything at our company.

“When we acquire a business, I say, ‘Yes, we bought your equipment and bought your customer list and now have this nice building, but the biggest asset we’ve acquired is people. And the people within these walls determine if (the business) will be successful.’ Being able to convey that message at this stage — and to be able to back it up — is important.”

Telle and his team review a checklist with each employee. The document compares the employee’s current benefits to benefits that Telle Tire offers, which, in most cases, are superior. “We’ll sit down and review what their exact pay is, including, if they have commission, how that’s

“On the sales side, we look for a certain (amount) of revenue” when evaluating a business for acquisition, says Telle (pictured with his wife, Laura.) “We really want to see at least $1 million annually. And while the (selling) price has to be right, at the end of the day,” intangibles also are an important factor in Telle Tire’s evaluation process.

Photo: Telle Tire & Auto

paid; health and benefits; what’s being taken out of their paychecks currently; and more. Then we’ll look at Telle Tire’s benefits and say, ‘OK, here’s where you are right now. Here’s what’s going to happen.’ We show them they aren’t taking a step backward. In many situations, (their compensation) is improving on day one.

In a lot of situations, we’ve improved their health benefits.”

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Telle Tire isn’t open on Saturday — another benefit that Telle and his team points out. “Articulating to them that we’re only open five days a week” is critical, according to Telle. “Work-life balance is extremely important to me and it’s extremely important to our associates.”

At the same time, Telle Tire’s back office works to ensure a smooth transition for new employees. “We have a 90-day checklist. The first step is making sure all the human resources, benefits and pay functions for each individual are taken care of, they’ve been transitioned properly and everyone feels good about it. That’s the first hurdle. The next big one is transitioning (an acquired store’s) point-of-sale system” to Telle Tire’s system. “That’s one thing you look at fairly early in the process.”

Rebranding to Telle Tire’s store format eventually follows “and there’s a process around how that takes place.”

CONSTANT REINVESTMENT

When acquiring and integrating new stores, Telle Tire does what it can to make sure existing employees don’t feel overlooked.

“As we grow, we don’t want to become so big that our people become more of a number,” says Telle. “As CEO, one of my jobs is to ensure that small family business feel and culture remain intact. I personally visit our stores and meet with the individuals who have been with us.

They’re the reason we’re the business we are today. They’ve bought into our culture. They’ve bought into what we do as a company. And they’re the ambassadors to new associates who are coming onboard.”

Telle says he’s seen other businesses sink all of their dollars into newly acquired properties, while neglecting old ones — a situation he goes out of his way to avoid. “A new acquisition may get a new alignment rack. A new acquisition may get a nice, new parking lot. A new acquisition might get new scan tools. You have to provide the tools and space for new acquisitions to be successful. But sometimes when you grow quickly, you can start to forget about your old stores.

“We’re constantly staying on top of our current stores. We’re investing in multiple upgrades — making sure (the stores) are not falling behind and are getting the things they need to be successful.”

It’s just as critical to ensure the dealership maintains consistency and quality of service across multiple locations, according to Telle. That, too, is not left to chance. w w w . M o d e r n T i r e D e a l e r. c o m 2311MTD_64-65_TelleTire .indd 65

Prospect list Telle Tire gets to know potential acquisitions ahead of time How did Telle Tire & Auto Centers find some of the tire dealerships it’s bought over the years? “In some cases, the owners reached out to me directly,” says Aaron Telle, president and CEO of the 23-location Telle Tire, which is based in Webster Groves, Mo. “But many have been businesses that we were already aware of.”

Sometimes Telle will send an old-fashioned, written letter to prospects, “expressing my interest and telling them who Telle Tire is and what we’re about. It’s a letter that doesn’t necessarily say, ‘I want to buy your business,’ but rather, ‘We understand you have a very good business.’ It gives us an opportunity to get to know each other.

“After I send these letters, in some situations, I’ll hear from someone right away.

In other situations, it might take two years for someone to pick up that phone.”

When discussions begin, Telle emphasizes that “we’ll be good stewards of their business” if a transaction happens. “We understand that a lot of these owners have put a lot of blood, sweat and tears into their business for many years and it’s not just about the top dollar. It’s more than that. Will their legacy continue? Will (a sale) be good for their employees?

“We have a three-year outlook (regarding) what markets we want to be in and what our acquisition opportunities are. I’m constantly trying to build contacts, create relationships and identify businesses that would be good acquisition targets for Telle Tire.”

“We’re constantly talking with our people.

We’re constantly communicating with our store managers. We’re getting successful store managers who are running great stores to communicate and interact with new staff members. We have an onboarding process where we’re constantly bringing people to our training facility.

“I personally send out memos about customer service,” he continues. “We never send out memos saying, ‘We need to sell more brake pads. We need to sell more alignments.’ All of our communication is focused on how we can create the best customer experience. My philosophy has always been that if we can execute on that, the sales will be there.”

‘A MAJOR EVOLUTION’

The dealership’s acquisition process has been “a major evolution” over time, according to Telle. “For our first few acquisitions, there was no checklist. It was more seat-ofour-pants. One thing I was very fortunate to (experience) early — and I think this was more luck than any framing I did — was that our first four or five acquisitions were already well-run, great businesses and came with great people,” some of whom went on to join Telle Tire’s management team.

Telle admits some “mistakes” have been made along the way. Telle Tire once made a sub-optimal acquisition — two stores in a

market that were four hours away from its home turf. “It was an asset sale. The stores were losing money.” And their customers were unfamiliar with Telle Tire.

“What I learned is doing something like that four hours away, where people don’t know who we are, is hard work.

Doing that in our backyard or in a market where we have a strong presence is a different story. But I’m happy I made that mistake. It allowed me to learn and allowed us to improve and become better.

“One thing I always say is, ‘We’re all going to make mistakes in this company and I’m the one who will probably make the most mistakes. But as long as we’re learning from them, there’s nothing wrong with making mistakes.’ That’s part of our culture. There’s nothing worse than when an employee makes a mistake in an environment where they feel their boss might yell at them or threaten to make them pay for that mistake or remove their commission. That creates an environment” that encourages employees to hide their mistakes.

“That’s where we, as an industry, sometimes get ourselves in trouble,” says Telle.

Employees who are focused on protecting themselves “are not looking after the best interests of the customer. We embrace mistakes. And when those mistakes take place, we can raise our hands and say, ‘We messed up, but we’ll take care of it.’” ■

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Auto service

‘You’re going to have to do this’ C&D TIRE NAVIGATES THE ADAS LEARNING CURVE By

Mike Manges

M

aryville, Tenn.-based C&D Tire began recalibrating advanced driver assistance systems (ADAS) in January 2023 and its owner, Dennis Dossett, says the dealership is still learning about the service. “We haven’t figured all of this out yet.”

But one thing Dossett knows for sure is that ADAS will become an increasingly bigger part of what his five-store dealership offers.

“If you’re an independent tire dealer and you want to be around” on a longterm basis, “you have to do your part and your part is being able to service the customer. If you’re not able to say, ‘No problem. We can do that for you,’ they’re going to find someone else who can. And that applies to ADAS.”

NOT UNLIKE TPMS

Dossett had been looking at ADAS service for several years prior to offering recalibrations. “We have a five-year outlook” when evaluating new tire and service technologies and determined that ADAS is here to stay, he says.

He compares it to when tire pressure monitoring systems (TPMS) were mandated on new vehicles. “Some dealers said they offered TPMS service. Some dealers said they weren’t sure. There were a lot of different variables and you had to look at a lot of different things. But we jumped in and trained our people so we’d be well-equipped.

“We’re taking the same approach with ADAS. It’s going to be standard” on all vehicles, he believes.

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“We have to show people what ADAS does, the importance of having it and what it’s going to take to recalibrate their vehicles,” says Dennis Dossett, owner of C&D Tire, which is based in Maryville, Tenn. The five-store dealership began servicing advanced driver assistance systems less than a year ago.

Photo: C&D Tire

“If you’re going to be in the tire business, you’re going to have to do this.”

That doesn’t mean ADAS service is simple. “When TPMS came out, there were many manufacturers of TPMS sensors,” says Dossett. “It was very complex. Right now, ADAS is pretty vast. There are a lot of different ways to look at it.”

However, like TPMS sensors and tools, ADAS service will eventually “standardize,” he says.

“It’s going to be easier to service ADAS in the future. Consumers have to have their vehicles’ ADAS recalibrated. And as more cars with ADAS (come out), we’re going to have to be faster and better at it.”

RECENT FINDINGS

C&D Tire, which is a member of the Independent Tire Dealers Group LLC, sends its technicians to ADAS training offered by Hunter Engineering Co. — two technicians at a time. “They then teach our other techs.

That seems to be working for us.”

The dealership’s technicians also refer to a web portal provided by Hunter, where they “can go and look up specific vehicles.

It gives us information on what resets we have to do.”

Procedures can vary from vehicle to vehicle, according to Dossett. “When you get into Audis and Volvos, ADAS becomes more complex than, for example, a Honda Odyssey van. You need a lot of room and

you have to work really hard to recalibrate ADAS on some European and Asian cars.”

Aftermarket lift kits present another challenge. “As people continue to raise their trucks, you’re changing those camera angles. All of this has to be figured out.”

EDUCATION IS A MUST

Educating customers about ADAS is critical, says Dossett, again harkening back to the advent of TPMS. “When TPMS came out, a lot of consumers didn’t know anything about it.

People said, ‘You’re crazy. I’m not paying for a TPMS sensor.’ Now, because people understand what TPMS does, we sell a lot of sensors. People understand the value of it.

“Now we’re faced with educating consumers about ADAS,” he explains. “We have to show people what ADAS does, the importance of having it and what it’s going to take to recalibrate their vehicles.

“The other thing we have to educate customers about is the expense of an alignment,” with the addition of ADAS. “Instead of that front end alignment being $119, it can run as much as $300 or $350, depending on what you have to do. The cost is definitely going up.

“We’re on the very front” of ADAS service. “It’s new for everybody. We still have situations where we don’t have all of the specs on every vehicle. It’s a learning process, but we’re keeping up with it.” ■ MTD November 2023 10/17/23 3:52 PM

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New TIA president

New TIA president outlines goals TRAINING, MORE MEMBERS TOP LIST OF OBJECTIVES By

Mike Manges

A

s president of AME International, a distributor of tire service equipment, Keith Jarman, the incoming president of the Tire Industry Association (TIA), has a different background than some of his predecessors.

However, as a 30-year tire industry veteran, Jarman — who has served on TIA’s board, minus two or three years, since 2009 — is well-acquainted with the numerous challenges facing TIA’s tire dealer members.

“I have a good working knowledge of the issues,” he says with a degree of understatement. “Some of them haven’t changed.

Safety and training are always important.”

In this interview, Jarman discusses TIA’s priorities in the coming year, which include significant reinvestment in the association’s training programs.

MTD: From your perspective, what are the most pressing issues facing TIA and in particular, its tire dealer members?

Jarman: If you’re in business in 2023, you probably have labor challenges in one form or fashion, so that’s going to be a big issue. Because the next generation that’s entering the workforce may be the first to have grown up with a digital device, they tend to gravitate more towards jobs with technology — even though there are certainly a lot of technologically advanced jobs in our industry and our industry is utilizing technology.

We also have talked about Right to Repair. That’s a challenge. As cars evolve, tire dealers potentially may not have access to repair manuals or codes. And one of our (other) challenges, for sure, is the consolidation (of tire dealerships.) Less members equals less dues. The locations may be there, but they’re owned by a smaller number.

MTD: What efforts are underway to increase TIA membership?

Jarman: Retention and growth are both important. I think we’ve become a little

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more aware, even with your ow n published lists, like the MTD 100, that there are a number of dealers — too many, in my opinion — who aren’t members of TIA. That’s certainly a target.

The board supports that, as well. We’ve added new dealers under (outgoing TIA president) Jim Pangle’s watch and that will continue.

to normalize everybody changing tires in the same, safe manner. That’s a giant focus.

MTD: What will be the TIA board’s legislative priorities during your term as president?

Jarman: There are three states now where there’s Right to Repair legisla“Our board is passionate about training,” says Keith tion — Maryland, MassaJarman, the Tire Industry chisetts and Maine. Then Association’s (TIA) new MTD: What investments federally, we’ll continue president. “Some would is TIA making in its to offer support of the argue it’s probably the most important benefit TIA training programs?

REPAIR Act, working provides to its members.” with members of ConPhoto: MTD Jarman: Training is gress to ensure that tire always one of the big line dealers can repair not items on our expense only the cars that are out there today, but the cars of tomorrow, sheet, but also is a big line item (for) revenue. Our board is passionate about as they become more technologically training. Some would argue it’s probably advanced. the most important benefit TIA provides to its members and even non-members. So MTD: Why is it important for tire dealthere is continual investment. ers to get involved with TIA? As the industry evolves, certain categories may be prioritized over other Jarman: I think it really boils down to two avenues — and you can say this ones. This year, we’ve already released Commercial Tire Service (updates.) We is largely TIA’s purpose: training and have Spanish language translation taking government affairs. Our members believe place. We tend to think of only the border in TIA training. Their technicians get states, but there are companies all over who the patches on their arms. It’s critically have Spanish-speaking employees and important. We’re so much further ahead are asking for that. There’s huge demand. than where we were 20, 25 years ago.

We’re light years ahead.

The biggest undertaking is the complete relaunch of our Earthmover Tire On the government affairs side, if Service program. That’s happening next something happens on a local basis — a year. lot of times, there are laws that are writOne thing TIA has done incredibly ten that can really be a burden to our well is take training into the field. We’re members — we can quickly mobilize so much safer today than where we were dealers in that area who can go to that and there’s so much education out there state representative or senator and (edu— so many positive things TIA has done cate them.)

— yet there are far too many incidents Stopping things that are potentially that still occur. burdensome is a huge benefit. GovernThere are still too many (technicians) ment affairs doesn’t get the top billing who say, ‘Well, I’ve done it this way for 20 that training does, but I think it’s equally years and haven’t gotten hurt.’ We have important. ■ MTD November 2023 10/17/23 3:52 PM

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Business Insight

High-risk management ARE YOU DOING EVERYTHING YOU CAN TO PREVENT COMMON SHOP INJURIES? By

Dennis McCarron

W

hat are your risks when it comes to worker injuries? Across many tire dealerships throughout the United States, the risks are very high every single day.

Our largest employee demographic is males between the ages of 18 and 40. You know this person. I call him Superman. He’s able to leap down off the alignment rack — without a step stool — in a single bound. He can carry four truck tires on his shoulders instead of rolling them. He squints instead of using safety goggles because his eye lids have super strength and speed.

It’s not a tech. It’s not an advisor. It’s Superman!

Until one day, he turns an ankle when jumping down or his back locks up while he’s carrying four tires or worst of all, you have to call his wife and let her know her husband is on the way to the emergency room with a serious eye injury.

While we can’t make injuries 100% preventable, we certainly can do a lot more than we do currently to reduce the likelihood of an accident. For starters, let’s look at the four most common injuries that are recorded in independent automotive dealerships: Burns. According to OSHA, burns are the number one reported injury in an auto service facility. And if you have never thought about it, it’s likely because there are so many ways of getting burned in a shop. There are the timeless incidents of placing an arm on an exhaust pipe, burning a hand on an engine component, setting fire to oneself with an acetylene torch and gas fumes that catch fire while someone is standing in the fumes while lowering a gas tank. These are just a couple of examples.

(Make sure at the very least, fire-resistant clothing is available and used properly when using a torch.)

Do not allow your technicians to say something along the lines of “Don’t worry. I won’t make a mistake.” You shouldn’t be worried about them making a mistake. It’s the variables the technician doesn’t control that should worry you.

Additionally, any time a worker is working with a gas tank or has gas fumes exposed, the entire shop must know about this and conduct themselves in a heightened, safety-minded manner.

The shop should also have ample supplies for burns and severe burns in its first aid kit.

Cuts and lacerations. From sharp metal objects on damaged vehicles and box cutters to slipping on a wrench and your arm goes flying into a rusty bolt, cuts and lacerations are frequent.

While very hard to prevent, you can at least have the proper materials on hand to clean and deal with small cuts.

For larger lacerations, there should be a driver who can take the employee to the ER or urgent care. Never let an injured employee drive themselves to receive care.

And box cutters? I wish I could say, “Get rid of them,” but please get a pair of cut-resistant gloves. And if anyone ever lays

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Eye injuries are almost entirely preventable, as long as technicians wear their safety glasses properly.

Photo: Michael Touey, Halibut Blue LLC

a box cutter down without retracting the blade first, that person isn’t responsible enough to use the tool.

Eye injuries. These injuries are often life-altering and nearly 100% preventable. The risk of eye injury comes from sparks (think grinding wheels), chemicals (burning sensation in the eyes from vapors or actual contact with chemicals in the eye) and flying debris. Eye injuries happen in a flash and are normally not the fault of anyone other than the person who is not wearing their safety glasses.

Trust me, you don’t want to be the cause of someone’s lifetime blindness because you looked the other way when your employee was doing something dangerous and his glasses were on top of his head — not over his eyes.

Lifting. Turning your back side to side is not a major risk.

Lifting something kind of heavy is a moderate risk. Lifting something heavy and turning is a severe risk. Back injuries are the fourth most common injury in shops.

While not all back injuries are preventable, sometimes they just happen. Reasonable prevention and guidelines can go a long way. This means no lifting of anything over 30 pounds alone.

And has anyone taught your employees proper lifting techniques, like lifting with your legs — not your back?

Your worker’s comp expense is already ridiculous, from a financial standpoint, and every employee should go home to their loved ones in the exact condition they arrived at your dealership. ■ Dennis McCarron is a partner at Cardinal Brokers Inc., one of the leading brokers in the tire and automotive industry (www.cardinalbrokers.com.) To contact McCarron, email him at dennis@cardinalbrokers.com.

MTD November 2023 10/17/23 3:52 PM

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Dealer Development

Are you optimizing your profitability?

HOW TO BEST LEVERAGE YOUR MOST VALUABLE ASSET By

Randy O’Connor

W

ith 2024 right around the corner, we should all be thinking through how we’ll plan for another successful year. By most measures, 2023 has been a very solid year. The last few years have proven challenging, but very beneficial for those who adapted.

With 2021 and 2022 fading into the distance, we’ve settled into a fairly consistent market. Now that drastic impacts to our business are mostly behind us, at least for now, the dust has settled.

We all know one of the best predictors of future behavior is past behavior, so let’s take a look at what we’ve seen from our 300-plus rooftop vista at Dealer to Dealer Development Group in the past year. Year over year, here’s what we’re seeing yearto-date — on average, by location.

Sales have risen 10.1%, for a total increase of $152,000.

Gross profit dollars have risen 10% for a total increase of $82,000. What’s notable here is that our average gross profit percentage, year-to-date, is 55.8%, up half a point.

Take note that we intentionally separate payroll dollars from gross profit dollars in our benchmarks. (Your employees are your most valuable asset.)

‘We’re seeing the payroll increase as a percentage outpace the gross dollar increase as a percentage.’

Payroll as a percentage of gross profit is up 0.72%, for a total payroll dollar increase of $43,000.

Also notable here is our 42.5% payroll-to-gross-dollar benchmark. While it’s great to see additional gross dollars being spent on payroll, it’s counter-intuitive to have your gross dollars rise so significantly and the payroll percent of those gross dollars increase as a percentage, as well.

This plays out in a significant way, which I’ll get to in a moment.

(By the way, non-payroll operating expenses are down 1.6% of sales.

All this translates to a 1.3% increase in net. Nice!)

There are two pieces of data I’d like to call your attention to: Sales and gross profit dollars per invoice. With inflation, we expected dollars per invoice to be up. What we didn’t expect is the increase in gross profit dollar per invoice significantly outpacing the increase in sales dollars per invoice. What does it mean?

First, it means our mix of business has changed. While tire dollars have risen, service and parts dollars have risen more.

With parts and service dollars at a higher margin than tires,

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If you’ve given a wage increase that isn’t tied to production, you need to seriously consider how this will affect you moving forward, especially if your invoice count is down.

Photo: MTD

you net down at a faster rate. In other words, we’re getting more out of every invoice. This is not only healthy, but necessary. As the number of rooftops in our industry continues to grow, it’s likely eating into some of your market share (i.e., decreased invoice count.)

Payroll dollar increase versus gross dollar increase. Year-overyear, our largest and most important asset also happens to be our biggest single expense: payroll. As gross dollars increase, we expect the payroll percentage of those dollars to decrease, at least if you have quid pro quo compensation plans.

We’re seeing the payroll increase as a percentage outpace the gross dollar increase as a percentage, year-over-year. This says two things. We gave the very necessary wage increases largely on an hourly basis, rather than an efficiency basis. No bueno!

And these types of wage increases will continue to negatively affect payroll as a percentage of gross profit and net profit until a change is made.

Typically, changing pay plans should be the last thing we consider to improve profitability. We need to learn that paying a flat hourly rate — plus some version of commission — doesn’t drive the behaviors to efficiently operate a long-term, profitable model.

If you’ve given a wage increase that isn’t tied to production, you need to consider how this will affect you moving forward, especially if your invoice count is down.

We all know “culture” is a buzzword these days. I believe your team members want a form of ownership in their roles and the support to help everyone achieve their goals. Most of your pay plans probably don’t do that, but they should. The new year is just around the corner. Let’s get after it! ■ Tire and auto industry veteran Randy O’Connor is the owner/principal of D2D Development Group (Dealer to Dealer Development Group.) He can be reached at randy@d2ddevelopmentgroup.com. For more information, please visit www.d2ddevelopmentgroup.com.

MTD November 2023 10/17/23 3:52 PM

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Mergers and Acquisitions

EBITDA or free cash flow?

WHICH IS THE BETTER MEASUREMENT? By

Michael McGregor

E

BITDA, or Earnings Before Interest, Taxes, Depreciation and Amortization, has become a ubiquitous tool in analyzing businesses. It’s what us investment bankers use when presenting our client’s businesses for sale. It’s origin can be traced to someone in the mid-1970s who wanted his business to look better than what it appeared under Generally Accepted Accounting Principles (GAAP).

John Malone, former CEO of TCI Cable and now Chairman of Liberty Media (he’s also America’s second largest landowner), came up with this financial metric. Malone realized that scaling nationwide was the only way to get Hollywood studios and TV networks to negotiate on pricing, so he took on a lot of debt and reinvested every dollar of profit and plowed it back into his network. But that made his net profit look bad. So Malone then argued that EBITDA provided a clearer picture of his company’s operational performance by excluding expenses like depreciation and interest in his case.

Investment bankers and leveraged buyout investors in the 1980s adopted EBITDA as a tool for figuring out whether a company had the profitability needed to service the debt that would be taken on to buy the company. In addition to placing more debt on the balance sheet, a buyout would likely also change tax liabilities, so excluding taxes made sense, as well. And since this was a non-GAAP tool, they took it one step further and excluded some other expenses they considered not relevant, which they disclosed in footnotes to cover their backsides.

Soon enough, venture capital firms latched on to EBITDA to add puffery to elements of financial performance — prior to the dot-com bubble in the early 2000s, of course. The most egregious recent case has got to be WeWork Companies Inc., which took a nearly $1.6 billion net loss and turned it into a positive $467 million in “Community Adjusted EBITDA” by adding back both general and administrative and sales and marketing expenses. Audacious.

While EBITDA can and has been abused, it’s easy to see how EBITDA in highly capital-intensive cable and telecom companies is useful in viewing the underlying cash flow powering massive investments in those fixed assets. But is EBITDA the appropriate measurement for analyzing tire dealers, particularly when it comes to depreciation?

One might argue that a single retail tire store comprises a significant amount of fixed assets when you consider land, building, business systems, fixtures and equipment. But keeping up the appearance of a retail store requires continual investment, just to stay competitive so that’s not going away. Commercial tire dealers have similar location investments, in addition to expensive service trucks that require replacement. And with wholesale tire distribution, it’s not so much the investment in fixed assets, but the investment in working capital that EBITDA does not account for. Supply chain issues in the tire business have recently seen

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‘Is EBITDA the appropriate measurement for analyzing tire dealers?’ wholesaler’s inventory dipping precariously low and then reaching all-time highs, straining balance sheets.

One of the most vocal critics of EBITDA is Warren Buffett, the legendary investor and CEO of Berkshire Hathaway. Buffett has consistently spoken out against EBITDA, labeling it as a misleading metric.

Buffett argues that depreciation is not only a legitimate expense, but a vital one. He emphasizes that businesses must allocate a portion of their earnings to replace aging assets continually. By doing so, they ensure their long-term sustainability and competitiveness. Ignoring this expense can lead to a company’s deterioration and eventual decline.

Warren Buffett prefers free cash flow (FCF) as a measure of a company’s value over EBITDA for several reasons.

Buffett believes that cash is the lifeblood of any business and that a company’s ability to generate and manage cash is a critical determinant of its value.

FCF, unlike EBITDA, directly focuses on the actual cash generated by a company’s operations. It considers not only operating profitability, but also capital expenditures, and changes in working capital, which are essential for understanding a company’s cash-generating ability.

Buffett places great importance on how a company allocates its capital. He prefers businesses that generate more cash than they need for reinvestment, as this surplus can be used to reward shareholders through dividends, stock buybacks or further investments. FCF allows investors to assess whether a company has excess cash available for these purposes, whereas EBITDA does not provide this insight.

FCF is often considered a more conservative and resilient measure of a company’s financial health. It accounts for the sustainability of a company’s cash generation over time. By analyzing FCF trends, one can better assess whether a company’s profits are durable and if it can weather economic downturns or unexpected challenges.

Buffett is known for his long-term investment horizon. FCF provides a more robust foundation for assessing a company’s long-term growth potential and ability to create enduring value.

It reflects a company’s capacity to reinvest in its business, repay debt and reward shareholders over the long haul. ■ Michael McGregor is a partner at Focus Investment Banking LLC (focusbankers.com/automotive/ tire-and-service). He advises and assists multi-location tire dealers on mergers and acquisitions.

For more information, contact him at michael.mcgregor@focusbankers.com.

MTD November 2023 10/17/23 3:52 PM

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EV Intelligence

Are you and your employees resisting the EV movement?

MOTIVATION COMES FROM A CULTURE THAT KEEPS MOVING FORWARD By

Craig Van Batenburg

M

y company, Automotive Career Development Center (ACDC), is busy. Why? Technical training on electric vehicles (EVs) is what we do.

Last week, I was asked to help a salvage yard with a 2022 Volkswagen ID.4 that needed the removal of a high-voltage battery pack. It is a local yard and one I did business with years before, when I ran my shop. Now we train their disassemblers and technicians.

Tom, the yard’s manager, called me as they could not find the orange disconnect plug. Even though I had emails to return, the thought of getting outside on a warm sunny day (I live in Massachusetts) was appealing. I told Tom I would be there in 20 minutes.

I met Jimmy, their tech, and headed out back to see the VW electric car. I showed him where the new-style safety disconnect was and explained some of the changes in the EV world that he needed to be updated on.

Tom came back to say hello and the three of us enjoyed the weather. As we visited the topic of Massachusetts’ new EV mandate, off-shore wind power, battery production and more came up. They were skeptics.

This was familiar territory for me, as most of our classes had similar conversations. No one got excited. There were three mind sets.

Tom did not question the basic idea of EVs, but thought we were moving too fast. Jimmy was laid back and had no opinion he was willing to share, but had a job that required him to take apart any crashed high-voltage vehicle they purchased.

I offered some data about EV sales trending upwards, what was coming soon, the latest safety issues and my view of the future. I, of course, love the technology, but still try to remain objective by looking at the downside.

After some back and forth, I asked both of them, “Do you think global warming is changing the weather and creating extreme droughts, floods and hurricanes?” That one question splits the industry into two camps: those who agree that there is a looming global climate crisis and that tailpipe emissions of carbon dioxide are the main reason for the rapid expansion to EVs and those who do not.

The majority of technicians and others in our industry who do not want to be part of this transition have a view that climate change is either completely made-up or that it is a naturally occurring event and we cannot do anything about it. (My informal survey is based on the technicians we teach.)

Carl Sagan from Cornell University spoke to Congress in 1985 about the effect of carbon dioxide and the greenhouse effect. That video is about 17 minutes long and is available on the Internet. It is quite educational.

76 2311MTD_76-77_EVIntellegence.indd 76

There is a growing number of ACDC students who know the science and the relationship between carbon dioxide and a warming planet.

If you are resisting the EV movement — and many do — there are plenty of internal combustion engine-powered vehicles to work on, so you will be fine for a long time, but not forever. If you are concerned about the climate and are taking care of your customers, no matter what they drive, you will be fine for the rest of your life. Which side are you on?

Resisting change is normal. The only change you will embrace is the one that presents itself as something good for you or those you love. At this point, if you are still reading this, I will assume you are open to change.

‘The only change you will embrace is the one that presents itself as something good for you or those you love.’

Could you imagine a technician who was opposed to gasoline and diesel fuels? That would be ridiculous. If he or she was hired to fix motor vehicles and had such an outlook, that person’s job prospects would be limited, at best. No owner would put up with that.

I interviewed a local car dealership technician last year, as we needed more expertise in evaluating the electric cars we buy for our business to teach with. The dealership’s owner did not like EVs, so they sold very few. This technician was the best they had, but eventually left them to work at ACDC because he saw no future at this dealership. The business kept losing customers, his pay was limited, flat rate times were shrinking and he knew more and more that electric cars and trucks were coming.

His motivation was simple: find a job with a future. He knew that “throwing pizza at a tech to motivate them” was a joke. Motivation comes from a culture that keeps moving forward — one that is not afraid of the next thing. ■ Craig Van Batenburg is the CEO of Van Batenburg’s Garage Inc., dba Automotive Career Development Center (ACDC), which is based in Worcester, Mass. A 50-year automotive service industry veteran, Van Batenburg provides training for facilities that service — or want to service — electric and hybrid vehicles. For more information, see www. fixhybrid.com or email him at craig@fixhybrid.com.

MTD November 2023 10/17/23 3:52 PM

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Focus on Dealers

Best-One credits growth to focus on family GROUP ROLLS OUT NEW PROGRAMS FOR MEMBERS By

Mike Manges

“F

amily” was the operative word at Best-One Tire Group’s recent 75th anniversary celebration/ dealer meeting.

“Our number-one strategic initiative can be summed up in one word: family,” Lindsey Beer, Best-One’s chief strategy officer, told Best-One dealers, associates and their families, who traveled from all over the United States to attend the event, which was held in French Lick, Ind.

Bradenton, Fla.-based Callaghan Tire, which has 16 locations and two Bandag retread plants, recently joined Best-One. (Pictured are Carol and Don Mead from Callaghan Tire, which is now known as Callaghan’s Best-One.) Photo: MTD

“There’s nothing better than getting to work with the people who are here today,” said her cousin, Tina Zurcher, Best-One’s general counsel. “Our commitment to you is helping you reach your goals.”

EXCITING ADDITIONS

The newest members of the Best-One network are two dealerships that also have long, storied histories. Founded in 1978 by Dan and Elizabeth Callaghan, Callaghan Tire, which is based in Bradenton, Fla., joined Best-One this past May. The dealership, which is now known as Callaghan’s BestOne, operates 10 commercial truck tire centers, two Bandag retread plants, a fullservice retail tire store and a five-location industrial tire division. Cullman, Ala.-based McGriff Tire — which, like Best-One, is

78 2311MTD_78-79_BestOne.indd 78

celebrating its 75th year in business — joined the Monroe, Ind.-based Best-One network in August. Now operating under the McGriff Best-One Tire & Service banner, the dealership operates 18 locations throughout Alabama and Tennessee, as well as an intermodal division and two retread plants.

“Callaghan was already a strong, healthy, well-respected business,” said Jon Zurcher, Best-One’s chief operating officer. “It’s a family business that has multiple generations in the business. It has a strong leadership team in place. For us, it was a perfect fit. And with McGriff, it was the same situation. We had known and respected the McGriff family for many, many years. There are incredible similarities between McGriff and Best-One.” The newly formed partnerships with Callaghan and McGriff bring an additional four retread plants to Best-One’s network of 20 retread facilities and will enable Best-One to produce, in total, around 725,000 medium truck retreads this year — 60,000 more units than the group manufactured in 2022.

Several Best-One retread plants achieved record production levels last year.

(Best-One predicts its total retread output will top one million units in 2024.)

Altogether, there are 321 locations within Best-One’s network. (Approximately 165 of those stores focus on commercial tires.) Best-One has a presence in 28 states.

The Callaghan and McGriff deals beef up Best-One’s presence in the southeastern U.S., according to Jon, who added that “we’re going to keep growing in markets where it makes sense. We try to fly under the radar in a lot of ways.”

GROWING QUICKLY

On the retail side, Best-One members are outpacing the market, said Jon. (Best-One estimates that its consumer tire dealers, in total, sell around 1.5 million units a year.)

“I’m in the Indianapolis market,” said Scott Monteith, vice president of Best-One of Indy, which has 15 locations and is one

“Our number-one strategic initiative can be summed up in one word: family,” Lindsey Beer, Best-One’s chief strategy officer (far right), with Jon Zurcher, BestOne’s chief operating officer, and Tina Zurcher, Best-One’s general counsel.

Photo: Miles Media Inc.

McMahon’s Best-One Tire, which is based in Fort Wayne, Ind., is one of the fastest-growing dealerships in the Best-One network. (Pictured are Nikki Phillips, McMahon’s Best-One Tire’s director of retail development, and Bubba McMahon, one of the dealership’s owners.)

Photo: MTD

of the fastest-growing dealerships in the Best-One network. “We have so much competition, it makes your head spin.

Best-One has developed a foundation for us to build on. If we keep doing the things we’re doing, the future is bright.”

Best-One officials said its distribution arm “is the largest and fastest-growing part of Best-One’s business,” encompassing 62 locations and nearly 1,000 delivery trucks.

“The group is solid and I think our next 75 years will be even more special,” said Brooks Swentzel, president of Lexington, MTD November 2023 10/17/23 3:51 PM

Ky.-based S&S Tire Service, a longtime Best-One dealership. S&S Tire Service operates 13 distribution centers throughout the Southeast, in addition to 13 commercial tire centers and two retread plants.

THINK TANKS AND MORE

In an exclusive interview with MTD, Jon Zurcher, Tina Zurcher and Lindsey Beer detailed recently introduced BestOne initiatives that are already bearing fruit, including the organization’s “Think Tank” program.

“Three times a year, we bring in any Best-One partner who wants to be part of this group and say, ‘As an organization, let’s talk about our strategic initiatives.

What do we want to focus on? What’s most important?’” Beer told MTD. “We want to be on the front end of things and we want to make sure the initiatives we’re putting in place are things our partners actually need. It’s in the early stages,” but participation “has been awesome.”

Best-One also is developing additional

Best-One Tire’s Mark Zurcher (center) and Larry Zurcher (right) reminisced about their father and Best-One founder Paul Zurcher, who helped many Best-One dealers get their start. “He was a man who valued serving others,” said Larry.

Photo: Miles Media Inc.

best practices for dealers that will be rolled out across the organization. “There are things that would be easier if we all did them the same way,” said Beer. “And that’s one of the things our partners are realizing.”

Another initiative is the group’s BestOne Learning and Development (BOLD) training program, “which covers retail, distribution and commercial/retreading. We go down the leadership avenue.

We go down the personal development avenue. We offer things like courses in time management, managing confl ict and communication and hard skills. It’s a train-the-trainer type of thing.”

In addition, Best-One is developing a program that will teach interested dealers Spanish. “There’s a real need we’ve discovered for some of our folks to be bilingual,” said Beer.

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Focus on Industry

Serving the R/T market

SAILUN ANSWERS CUSTOMER NEEDS WITH TERRAMAX RT By

Madison Gehring

S

ailun Tire Americas has launched its Terramax RT light truck tire, which focuses on “good traction, good mileage and good value,” says Jared Lynch, director of U.S. sales, Sailun.

According to Lynch, the rugged-terrain (R/T) tire segment is continuing to grow and especially has grown in the last three to four years.

Because of the relative newness of the segment, Sailun decided to wait before creating its own R/T tire.

“We decided to wait a couple of years, collect data from North American consumers and then design it in-house — in North America — to meet their needs.”

R/T tires are good for both everyday use and people who occasionally take their vehicles off-road, he continues.

“It needs to do well in the gravel, it needs to do well in the mud and it needs to do well on rocks.”

Lynch says Sailun decided to give the Terramax RT a wide range of sizes to accommodate numerous vehicles. The tire also has a 45,000-mile warranty.

The tire officially debuted during a ride-and-drive event outside Las Vegas, Nev.

UNDERSTANDING VARIOUS NEEDS

Lynch says Sailun focused on three main things during the tire’s design, which took place at Sailun’s facility in Chattanooga, Tenn.: sizes, aesthetics and an actual understanding of how the tires are used.

The Terramax RT is offered in 36 sizes that fit 17-inch to 22-inch wheel diameters, with larger flotation sizes available.

Having a diverse range of sizes was important to the company so that the majority of the market was covered, says Lynch.

The tire also has an F load range to accommodate electric trucks coming into the market.

“We want to set our customers up for success today and for success in the future,” he says.

“These electric trucks that are slowly hitting the market weigh 50% more than internal combustion engine vehicles. So we wanted to make sure that as that segment continues to grow, our customers will be covered.”

The look of the tire was something the company really focused on. Lynch says Sailun talked with customers to see what look they preferred — both on the sidewall and tread.

This led to construction considerations, like proprietary anti-tear rubber compounds that Sailun engineered into the Terramax RT’s tread and sidewall, for example.

“This gives the tire better traction and protection and it looks cool,” says Lynch.

“We designed this tire to have 16/32nds of tread depth in P-metric sizes and 18/32nds of tread depth in LT.” During its research, Sailun also found that many of the target customers for the tire live in areas that see lots of snow.

80 2311MTD_80-81_Sailsun.indd 80

Sailun Tire Americas launched its Terramax RT tire in 36 sizes, fitting wheels ranging from 17 inches to 22 inches in wheel diameter, with flotation sizes available. The ruggedterrain segment is growing, according to Sailun officials.

Photo: MTD

The Terramax RT is 3-Peak Mountain Snowflake (3PMS)certified. (“Our company headquarters is in Toronto, so we are very aware of ice and snow,” says Lynch.)

“We thought if we could create an R/T tire with 3PMS, then we could save our customers money by allowing them to keep the same set of tires on for all seasons. That’s very important to us — to have a stable tire that is also saving our customers money.”

He says customers can keep the Terramax RT on their vehicles all year, which removes the need to buy a second set of tires.

TYING IN THE TERRAMAX NAME

Sailun also offers an all-terrain (A/T) tire in the Terramax line.

The Terramax AT was launched several years ago and “caught on like wildfire,” according to Lynch. “That tire model, just because it was so successful, really built a name for the Terramax.

“We wanted to create an R/T that was in that family of tires because customers who have used the Terramax AT know how good of a tire it is and this is an extension of that.”

The new Terramax RT “represents a lot of what the all-terrain (tire) offered customers over the years — great value and great traction.”

As the R/T segment grows, Lynch says this could alter the market for A/T tires. Right now, the R/T segment is “eating the (mud-terrain segment’s) market share,” he adds.

Customers “need good traction, but road noise (reduction) is very critical to them. That’s why we focused our efforts on making the Terramax RT a quieter tire.”

Lynch says Sailun did a lot of research on how to make the tire less noisy.

The new Terramax RT has both “good traction capabilities and good road manners.”

MTD November 2023 10/17/23 3:51 PM

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Focus on Industry

Tireco promotes second tire made in the USA THERE ARE ADVANTAGES TO DOMESTIC PRODUCTION, SAYS ANDREW HOIT By

Mike Manges

“W

e’re excited to have another made-in-the-U.S. product” in the Milestar Patagonia A/T Pro, says Andrew Hoit, executive vice president, brand division, for Tireco Inc. The light truck tire, which was unveiled during the 2022 SEMA Show, is the second Tireco product that’s manufactured in the United States.

The first, the Milestar Weatherguard AS710 Sport all-season, was rolled out in March 2021.

Hoit says domestic production presents several advantages.

First, it translates into shorter lead times since finished products are “closer to our warehouses and closer to our customers. You also have consumers who want tires that are built in America.”

These factors, combined with the Patagonia A/T Pro and Weatherguard AS710 Sport’s price points, “should be a compelling storyline for our distributors.”

GROWTH SEGMENTS

The Patagonia A/T Pro is available in 61 sizes, giving it 86% market coverage, says Hoit.

“Almost all of the tire’s P-metric sizes are finished developing and there are other sizes we’re still developing,” including some LT and high-flotation SKUs. “I think some economic headwinds have caused some softness in the rugged-terrain and mud-terrain segments because those are enthusiast categories.

“But the all-terrain (A/T) market has continued to be very strong. We have a bullish outlook on the A/T segment.”

Hoit says he would “stack” the Patagonia A/T Pro “up against any well-known A/T product.”

Tireco also is investing in the ultra-high performance (UHP) all-season tire segment.

The company recently introduced the Milestar Interceptor AS810 UHP all-season tire, which is available in 68 sizes, fitting wheels ranging from 17 inches to 24 inches in diameter.

The tire’s SKU lineup includes sizes for some electric vehicles (EVs.) “Customers are used to purchasing UHP all-season tires from us, so acceptance” of the Interceptor AS810 “has been very high,” says Mike Park, assistant director of marketing,

82 2311MTD_82-83_Tireco.indd 82

XXXXX Caption Photo: Xxxxx

The Patagonia A/T Pro is the second Tireco product that’s manufactured in the United States, says Andrew Hoit, executive vice president, brand division, for Tireco Inc. Photo: Tireco Inc.

brand division, Tireco. (The Interceptor AS810 is built at Tireco’s plant in Vietnam.)

However, Tireco received feedback from some dealers who “weren’t necessarily looking for an EV-specific tire,” explains Park.

“We took that feedback into consideration” when determining the Interceptor AS810’s size range, “so you’ll see, for example, a 21-inch size that fits Tesla.

“We didn’t want to design a specific EV tire because we didn’t want to create additional complexity,” says Park.

“I know everyone likes to talk about EVs and the impact they’re going to make, although the infrastructure needed for full-blown EV (adoption) ... we have a long way to go before that becomes a reality,” says Hoit. “But EVs are here and they’re here to stay.”

Both the Interceptor AS810 and the Patagonia A/T Pro come with a road hazard warranty and a 30-day ride guarantee.

“The Patagonia A/T Pro also is 3-Peak Mountain Snowflakecertified,” says Hoit.

“We’re not benchmarking against tier-three brands when we’re developing new products,” he explains. “We’re benchmarking against top-tier brands.”

MTD November 2023 10/17/23 3:51 PM

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Focus on Industry

Evaluating the possibilities

“Cosmo is our focus and something we’re putting a lot of capital and effort into,” says Tony Gonzalez, CEO of Tire Group International LLC. Photo: TGI

MORE COSMO STORES ARE IN THE WORKS By

Mike Manges

T

ire Group International LLC (TGI)’s Cosmo brand is moving into a new space: branded retail stores.

This past July, TGI — in partnership with Paul’s Tire Services of Hollywood, Fla. — opened its first Cosmo retail outlet.

The state-of-the-art, 8,000-square-foot location “marks a significant milestone for Cosmo Tires” according to TGI officials, and is the Cosmo brand’s first foray into tire retailing.

TGI, which was founded by Tony Gonzalez, its CEO, in 1992, is concentrating on growing its Cosmo brand, which encompasses a wide, ever-evolving range of passenger, light truck and medium truck tires.

“Cosmo is our focus and something we’re putting a lot of capital and effort into,” says Gonzalez.

“We see it as our future and a brand that is different than many other tierthree tires out there. And (the new store) is another example of that.”

Gonzalez says the owner of Paul’s Tire Services, a longtime TGI customer,

84 2311MTD_84_Cosmo.indd 84

mentioned that he was planning to open a new store.

“I said to him, ‘Why don’t we do something together there? We’ll give you the support you need and then you allow us to brand the store in return.’ That’s how the conversation started.

“We started coming up with design concepts,” including painting the store’s exterior in the Cosmo brand’s signature colors and adorning the location’s interior with other Cosmo brand elements. (“It’s all about representing where we come from,” says Gonzalez. “Miami has always had that wild, tropical side to it.”)

The store’s owner, whom Gonzalez has declined to name, “loved the fact he was going to be associated with an up-andcoming brand and a brand that has done a lot in our own backyard.”

Cosmo “is very visible” in the southern Florida area, notes Gonzalez.

Several months into its existence, “the store is doing great. It’s in a prime spot — a heavily traveled street — and has a great group of people working there.”

A second Cosmo store is in the works.

The outlet will be located in the Miami area.

“And there will be a couple of international (Cosmo) stores within the next year or so,” says Gonzalez.

“With our distributors in different countries and (customers) in different parts of this country who have contacted us, we’re studying where it makes sense” to place new stores.

“We could pop up tomorrow in California. We could pop up tomorrow in Texas. We’re evaluating the right partnerships,” with the goal of ensuring that potential partners “represent the Cosmo brand” in accordance with TGI’s standards.

“It’s all about the right partner, the right market, the right location and that partner’s reputation in that market,” says Gonzalez.

“If we’re going to put our name on something, we want it to be a good experience for the end customer. That’s what it’s all about.”

MTD November 2023 10/17/23 3:51 PM

TPMS

Lexus – IS Series – 2020-22 DESCRIPTION & OPERATION

When the tire pressure warning system detects that the tire pressure of a tire is lower than the threshold, it will inform the driver using a warning light.

The tire pressure warning ECU and receiver receives the transmitter ID, temperature and tire pressure information from the tire pressure warning valve and transmitters. This information is used to determine when the pressure in one of the tires has dropped.

TIRE PRESSURE WARNING RESET SWITCH

Operate the tire pressure warning reset switch only after the inflation pressures of all tires (except the compact spare tire) have been adjusted on the vehicle.

DESCRIPTION OF INITIALIZATION

During initialization, the tire pressure warning valve and transmitters measure the inflation pressure of the tires, and register the signals that are transmitted into the

TORQUE SPECIFICATIONS N* m kgf*cm, in.*lbf

By operating the tire pressure warning reset switch, the tire pressure warning ECU and receiver can be set to issue a warning at an inflation pressure that corresponds to the type of tires fitted to the vehicle.

TPMS ECU and receiver set bolt TPMS valve and transmitter set bolt TPMS valve and transmitter set nut

8.3

(85, 73)

1.2

(12, 11)

4.0

(41, 35)

tire pressure warning ECU and receiver at a frequency of about once per minute. The initialization process is completed when signals from all tires (except the compact spare tire) have been received.

Perform initialization in the following cases (and only after the transmitter ID registration is completed.)

• Before delivery of a new vehicle.

• After replacement of the tire pressure warning ECU and receiver.

• After replacement of a tire pressure warning valve and transmitter.

• When the specified tire pressure changes due to the use of a different size or type of tire.

• When the specified tire pressure changes due to a change in the vehicle load, the speed range that the vehicle will be used in, etc.

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TPMS • When a tire rotation is performed and the specified tire pressures are different for the front and rear of the vehicle.

TROUBLESHOOTING

Things to consider when the tire pressure warning light illuminates: When the tire pressure warning light does not go off, or when it illuminates during driving, check the tire pressure.

If the tire pressure warning light illuminates within several hours after adjusting the tire pressure, a tire may have a slow air leak.

The system is disabled under the following conditions: (When the condition returns to normal, the system will work properly.)

• When all the tire and wheel assemblies that have tire pressure warning valves and transmitters registered with the tire pressure warning ECU and receiver have not been installed.

• When all the transmitter ID codes are not registered with the tire pressure warning ECU and receiver.

• When the tire pressure warning valve and transmitter battery is depleted (Battery life is 10 years).

The system may become disabled under the following conditions: • When electric devices or facilities using similar radio frequencies are nearby.

• When a wireless device or other equipment operating at a similar frequency is in use in the vehicle.

• When a window tint that affects radio wave signals is installed.

• When there is a lot of snow or ice on the vehicle, particularly around the wheels or wheel housing.

• When non-genuine wheels are used.

• When tire chains are used.

• When aftermarket tire repair sealant is used.

WARNING: After use of tire repair sealant, replacement of the tire pressure warning valve and transmitter is required to ensure normal system operation. Normal system operation cannot be ensured by only repairing or replacing the tire.

In normal mode, DTCs are stored in the tire pressure warning ECU and receiver and output by blinking the tire pressure warning light or by using the Techstream.

By switching from normal mode into

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test mode (signal check mode), the tire pressure warning ECU and receiver, each tire pressure warning valve and transmitter and tire pressure warning reset switch can be inspected.

MEMORIZING THE TIRE PRESSURE SENSOR ID REGISTRATION PROCESS

The transmitter ID is written on the tire pressure warning valve and transmitter.

It is not possible to read the transmitter ID after installing the tire onto the wheel.

Therefore, make a note of the transmitter ID before installing the tire.

Make sure to perform ID registration using the Techstream after replacing the tire pressure warning ECU and receiver.

• Set the tire pressure to the specified value.

• Turn the engine switch off.

• Connect the Techstream to the DLC3.

• Turn the engine switch on (IG).

• Turn the Techstream on.

• Enter the following menus: Chassis / Tire Pressure Monitor / Utility /ID Registration/Tire Number Registration.

• Perform the procedure displayed on the Techstream. The number of registered tire pressure warning valves and transmitters can only be set to four when the value is currently set to five. The number of registered tire pressure warning valves and transmitters should only be changed from the default value when requested by the customer.

When replacing a tire pressure warning valve and transmitter, take note of the seven-digit transmitter ID, as shown here.

Photo: Mitchell 1

BEFORE REGISTRATION

When replacing the tire pressure warning ECU and receiver, read the transmitter IDs and number of the transmitters (four or five) stored in the old ECU using the Techstream and write them down.

If reading the stored transmitter IDs is impossible due to malfunctions of components such as the tire pressure warning ECU and receiver, remove the tires from the wheels and check the IDs located on the tire pressure warning valve and transmitters.

REGISTER TRANSMITTER ID (USING TECHSTREAM)

The previously registered IDs will be cleared from memory when registration is completed. If the ID registration step is not completed within 300 seconds, ID registration will be canceled.

CONFIRMATION OF REGISTRATION (USING TECHSTREAM)

If the automatic ID registration is started while DTC C2126 is stored, DTC C2126 and C2128 are stored in the tire pressure warning ECU and receiver.

During registration, DTC C2128 is stored by the tire pressure warning ECU and receiver and the tire pressure warning light blinks for one minute then illuminates. When the tire pressure warning ECU and receiver successfully receives signals from all the transmitters whose IDs are stored in the ECU, DTC C2128 is cleared and the tire pressure warning light turns off.

If a tire pressure warning valve and transmitter of the same type are carried in the vehicle, registration may not be completed.

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TPMS REGISTER TRANSMITTER ID (USING AUTOMATIC ID REGISTRATION FUNCTION)

When registration is complete, all previously registered IDs are cleared.

If DTCs C2176, C2179 and U0129 are stored, registration mode cannot be entered.

If the Techstream is being used to display the data list, registration mode cannot be entered.

If the Techstream is used to display the data list during registration, registration will be canceled.

If DTCs C2176, C2179 and U0129 are stored during registration, registration will be canceled.

If the engine switch is turned off before the vehicle is driven after entering registration mode, registration will be canceled.

• Adjust the tire pressure in all tires to the specified pressure.

• Turn the engine switch off and stop the vehicle for 15 minutes or more. (After stopping the vehicle for 15 minutes or more, the frequency of electrical wave signals sent by the tire pressure warning valve and transmitters increases for the first few minutes of driving — eight times the normal frequency.)

• Turn the tire pressure warning reset switch on and off three times within three seconds (pressed / released / pressed / released / pressed / released).

The tire pressure warning ECU and receiver switches to ID registration mode according to the automatic ID registration function.

During registration, the tire pressure warning light blinks for one minute before turning on, the multi-information display tire pressure displays as “- -” and “Registering Each TPWS Sensor” is displayed.

(TPWS is an abbreviation for Tire Pressure Warning System.)

• Drive at approximately 25 mph for approximately 10 to 30 minutes during one trip. Do not drive the vehicle in reverse during registration. If the vehicle is driven in reverse the information may be reset before registration completes, and registration may take longer than normal to complete.

• During the procedure, make two or more right or left turns.

• When registration is completed, the tire pressure warning light turns off, the normal tire pressure is displayed

88 2311MTD_85-89_TPMS.indd 88

on the multi-information display and “Registering Each TPWS Sensor” stops displaying.

Registration may take longer than normal in the following situations: • If the vehicle is stopped frequently or stopped for long period of time.

• If the vehicle is driven in reverse or is driven on rough roads or uneven surfaces.

• If the vehicle is driven near another vehicle with the same type of tire pressure warning valve and transmitter installed for a long period of time.

• If the vehicle was not stopped for 15 minutes or more before registration.

• If the vehicle is driven at 25 mph or less for a long period of time, or if the engine switch is turned off during ID registration.

INITIALIZATION

Before initialization, refer to the link as the procedure for adjusting the tire pressures differs depending on the temperature of the tires. Set the tire pressure to the specified value.

INITIALIZATION PROCEDURE

• Turn the engine switch on (IG).

• Press and hold the tire pressure warning reset switch for three seconds or more until the tire pressure warning light blinks three times.

• Turn the engine switch off.

• Connect the Techstream to the DLC3.

• Turn the engine switch on (IG).

• Turn the Techstream on.

• Enter the following menus: Chassis / Tire Pressure Monitor / Data List.

(Note: It may take a few minutes until the values are displayed.) The wheel position cannot be determined from ID1 through ID4 on the Data List.

• Check that initialization has been completed.

• Confirm that the tire pressure data of all tires is displayed on the Techstream screen.

SENSOR REMOVAL AND INSTALLATION REMOVAL

Remove wheel assembly, and then remove the tire pressure warning valve and transmitter.

• Remove (but keep) the tire valve cap.

• Remove the valve core to release the air from the tire. Make sure that a sufficient

amount of air has been released.

• Using an 11 mm deep socket wrench, remove the nut and washer.

• Drop the tire pressure warning valve and transmitter with grommet into the tire.

The grommet may remain attached to the wheel. Be careful not to damage the tire pressure warning valve and transmitter due to interference between the valve and the tire bead. Set the tire remover shoe.

• Using a tire remover, remove the tire from the disc wheel.

• Take out the tire pressure warning valve and transmitter with grommet from the tire.

• Remove the grommet from the tire pressure warning valve and transmitter.

• Using a T10 “TORX” socket wrench, remove the bolt and tire pressure monitor sensor from the tubeless tire valve.

INSTALLATION

General Tips: Always use a new bolt, grommet, tubeless tire valve and valve core when installing the tire pressure warning valve and transmitter.

Check that the washer and nut are not damaged and replace them if necessary.

Make sure not to damage the urethane covered backside of the tire pressure warning valve and transmitter (the surface opposite to the side with the ID code) with anything sharp.

Write down the ID number before installation.

Check that there is no oil, water or lubricant around the wheel hole, tire pressure warning valve and transmitter, washer and nut. Failing to do so may result in improper installation.

Use only a specified tire valve cap. If an unspecified tire valve cap is used, it may seize to the tire pressure warning valve and transmitter.

Install tire pressure warning valve and transmitter.

• Using a T10 “TORX” socket wrench, install the tire pressure monitor sensor to the new tubeless tire valve with a new bolt. Torque: 1.2 N*m (12 kgf*cm, 11 in.*lbf) • Install a new grommet to the tire pressure warning valve and transmitter.

• A new tire pressure warning valve and transmitter comes with a grommet installed. Make sure not to install an extra grommet.

MTD November 2023 10/17/23 3:51 PM

TPMS deformed, damaged or contaminated with foreign matter. Replace as necessary.

• Install the tire valve cap.

Complete the installation process by installing the wheel assembly, inspect tires, register transmitter ID, inspect the tire pressure warning system, and perform initialization. ■

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

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• Write down the seven-digit transmitter ID number.

• Insert the tire pressure warning valve and transmitter with grommet from the inside of the wheel.

NOTE: Make sure that the tire pressure warning valve and transmitter are installed so the printed surface can be seen. If the tire pressure warning valve and transmitter is installed upside down, it may be damaged or fail to transmit signals when driving at high speeds.

Check for any deformation or damage to the tire pressure warning valve and transmitter. Ensure there is no foreign matter on the grommet and around the wheel hole. No further tightening is required once the nut is tightened to the specified torque.

• Install the washer to the tire pressure warning valve and transmitter from the outside of the rim, and using an 11 mm deep socket wrench, tighten the nut. Torque: 4.0 N*m (41 kgf*cm, 35 in.*lbf) Make sure there is no foreign matter on the grommet, washer and nut. If the tire pressure warning valve and transmitter is positioned outside of the proper area, it will interfere with the tire bead and may be damaged.

• Set the tire and disc wheel onto the mounting machine.

• Apply a sufficient coat of soapy water or equivalent to the tire bead and rim. Do not apply soapy water or its equivalent directly to the tire pressure warning valve and transmitter.

• Make sure that the tire bead and mount tool do not interfere with the tire pressure warning valve and transmitter.

• Using a mounting machine, install the tire to the disc wheel.

• Install a new valve core.

• Inflate the tire to the specified tire inflation pressure.

• After the tire is inflated, the nut may be loose. Using an 11 mm deep socket wrench, retighten the nut to the specified torque.

• Check the surroundings of the tire pressure warning valve and transmitter for air leaks with soapy water or equivalent. If air is leaking from the valve core, press the valve core several times to remove foreign matter. Replace the valve core as necessary. If air is leaking from around the tire pressure warning valve and transmitter, check if the grommet, washer and nut are

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

PAGE

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Synchrony Car Care

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63

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Yokohama Off-Highway Tires America Inc.

15

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Yokohama TWS North America Inc.

33

www.trelleborg.com/wheels/us

ZC Rubber America Inc.

67

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Zeta Tyres

53

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