Modern Tire Dealer - April 2017 by EndeavorBusinessMedia-VehicleRepairGroup

THE INDUSTRYâ€™S LEADING PUBLICATION

AIR CONDITIONING SERVICE Are you ready for R1234yf? TOP 50 RETREADERS lament lack of protective tariffs COUNTER INTELLIGENCE The sales floor is now on the smartphone

THE INDUSTRYâ€™S LEADING PUBLICATION

Ransomware It holds you and your business hostage

April 2017 | Vol. 98, No. 4 | $10 | A Bobit Publication | www.moderntiredealer.com

Quik-Link: 800-687-1557 ext. 14101

The Industry’s Leading Publication April 2017, Volume 98, Number 4

Departments 4 Editorial Back from the near dead: New Jersey dealers give it another go with my support

Features 22 We are always there for our dealers Globetrotting keeps us, and therefore you, informed

24 Beware of ransomware One dealer shares his mistakes to help you fight a faceless cyber thief

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

8 News/views Why there are no tariffs on Chinese truck tires

16 On the Rise Vahé Michaelian, 1-800EveryRim.com, Santa Fe Springs, Calif.

18 Numbers that count Statistics from an industry in constant motion

20 Your marketplace

32 Real world experience with R1234yf The new refrigerant is finally here; are you ready?

Sell-out trends will accelerate throughout the next six months

52 Counter intelligence The sales counter moved again: And the sales floor is now on the smartphone

Commercial Tire Dealer™ 36 ‘Tires have become a commodity’ Top retreaders prepare for intense competition following the federal government’s tariff decision

44 2017 MTD Top 50 Retreaders in the U.S.

54 European notebook Innovative tires and more: Manufacturers speak out at the Geneva Motor Show

Focus on dealers/industry 57 Unifying the Tire Pros experience: Tools and training will help bolster business for all 59 The newest BFGoodrich tire is designed for Canadian winters

61 TPMS GM/Cadillac Escalade Series: 2007-16

47 The latest heavy-duty tire changers are designed for wide-base tires

74 Your turn

49 ‘Take your customers out of the tire business’

68 Products

Tips for cementing your relationship with OTR customers

Online tire buyers seen as savvy buyers or ‘bottom feeders’

70 Quik-Link 72 Classified

50 Commercially viable Modern Tire Dealer is a proud member of: TRIB

TIRE RETREAD & REPAIR INFORMATION BUREAU

Member An Industry Association

Editorial

Back from the near dead New Jersey dealers give it another go with my support

espite intents and purposes to the conSeptember, and the association’s 50th anniversary trary, the New Jersey State Tire Dealers will be celebrated next spring. Association (NJSTDA) appeared to be The importance of state tire dealer associations on its deathbed on Sept. 15, 2015. The official can’t be overstated. I recently visited annual announcement from longtime President and conventions and trade shows hosted by the North Executive Director Al Breese technically said Carolina Tire Dealers Association (NCTDA) the association was being put “on hold,” but and New England Tire & Service Association, there was nothing in the release that indicated and the resources they are providing to their the hiatus couldn’t be permanent. members are amazing. Their dealers understand By Bob Ulrich and appreciate what they can get out of a strong And then there were these ominous words. “Due to the recent acquisition, mergers and association catering to their needs. Many of the buyouts throughout the Greater New Jersey Area tire suppliers benefit, too. industry, combined with the lack of interest on the part Both associations also balance the present with the past of the Independent Tire Retailers, the NJSTDA board of by honoring their hall of famers. A well-run association directors has decided to put all of the organization’s future has something for every generation. activity on hold for the time being and regroup,” he said, “I joined the NCTDA many years ago, but quit because emphasizing the word retailers. I did not use any of the benefits and services that the “Unfortunately, without the paid membership and support association provided,” says Richard Leicht, a first-generation of our participants, the value of the organization comes owner and president of Atlantic Avenue Tire & Service into question. The NJSTDA is over 40 years strong and in Raleigh, N.C. “Maybe, like some of the New Jersey tire has always been dedicated to dealers, I did not see the the needs of the independent value at the time. tire dealers of the greater New “Years later, I was encourJersey area.” aged to join again and Breese’s plea for “new decided to get involved and blood” was a cry for help to participate in some of the keep the association alive. The services and programs. I am NJSTDA had outlasted more glad I did. than one recession, the New “Not only have I saved a Jersey Generals, even disco. lot of money participating in It had done all the right the programs we offer, but I things, from lobbying for have also made friendships favorable legislation to cultivating fellowship. Every with other tire dealers across our state. Sharing ideas and year, thousands of dollars were collected and donated to methods has helped me in running my business, which charities, as well. is invaluable. Most consulting companies charge for this As of March 28, 2017, the NJSTDA is back, ready to type of service and information.” regroup and rebuild. Meeting costs and 2017 memberBrian McCatharn gets it. A second-generation tire ship dues have been covered by tire manufacturers and dealer in Washington, N.J., he is always looking for ways the following local wholesalers: Jack Williams Tire Co., to improve business. Prior to the NJSTDA’s time-out, he American Tire Distributors Inc., Max Finkelstein Inc. and was a member in good standing. Reliable Tire Co. “It’s good to see how other people are running their Evidently Breese wasn’t able to get a group to cover gas businesses. It’s like round-table events.” money. Regardless, that leaves no excuse for retailers and McCatharn, manager of Oxford Auto & Tire Inc., says other wholesalers in at least the greater New Jersey area dealers always say they are too busy to join, “but we’re all to attend these meetings. No excuse. in the same boat.” He attended the recent meeting, and will “If we can’t offer members double or triple what they tee it up with the members at the upcoming golf outing. pay in dues, they shouldn’t have to pay dues,” says Breese. Breese says first-generation dealers made the state “We want to do more with dealer development and training association a priority. Now it’s time for the second- and assistance.” third-generation owners to step up. ■ Breese was encouraged by the turnout in March — at least six new retail members — and the sign-ups for the If you have any questions or comments, please email me NJSTDA golf outing in May. The fall meeting will be held in at bob.ulrich@bobit.com.

Breese’s plea for ‘new blood’ was a cry for help to keep the association alive.

MTD April 2017

Quik-Link: 800-687-1557 ext. 14102

moderntiredealer.com DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER

Home office

Readers love research Who pays attention to what J.D. Power studies find? Who cares what Tire Rack says about a tire? Apparently, a lot of dealers care and put a lot of stock in what these researchers discover. News items we wrote on their latest findings drew the most “hits” from readers of our website, www.moderntiredealer.com, last month. Following those items, news on tariffs, new tires and new tire technology grabbed interest. Here are our top 10 items: 1. Consumers pick one big winner in tire satisfaction 2. Tire Rack’s verdict on Michelin Pilot Sport A/S 3+ on snow is... 3. Supply and demand: why there are no tariffs on truck tires from China 4. Tariff investigation shows ‘pervasive underselling at high margins’ 5. Yokohama takes another step to increase its commercial business 6. Pirelli introduces ‘smart’ tires in Geneva — and will debut them in the U.S. 7. Goodyear’s latest concept: tires with a bionic skin 8. Michelin Defender gets an upgrade 9. Rick Phillips leaves Yokohama for Triangle Tire USA 10. The new BFGoodrich winter tire is designed for the Canadian market

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

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

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

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

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MODERN TIRE DEALER (ISSN 00268496) (CDN IPM #40013413) (USPS #369-170) is published monthly by Bobit Business Media, 3520 Challenger St., Torrance, California 90503-1640. Periodicals postage paid at Torrance, CA 90503-9998 and additional mailing offices. POSTMASTER: Send address changes to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks for address changes to take effect. Subscriptions in the U.S. and its possessions, $65; Canadian, $99; Int’l surface mail, $99; Int’l airmail, $198. Single copies, $10, except the January Facts Issue, $30. Address all subscription correspondence to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks to receive your first issue. Please address Editorial and Advertising correspondence to MODERN TIRE DEALER, 3515 Massillon Road, Suite 350, Uniontown, OH 44685-6217. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. For your information: We sometimes make our subscriber information (i.e. fax, e-mail or mailing address) available to carefully screened organizations whose products and services may be of interest to you. If you prefer not to have your information made available, please write MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068.

MTD April 2017

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News/views

Why there are no tariffs on Chinese truck tires Trade commission finds ‘pervasive’ underselling It all came down to supply and demand. At least those were among the most significant factors the International Trade Commission (ITC) weighed when deciding whether imported truck and bus tires from China should be subject to tariffs. In the end, commissioners voted 3-2 not to impose tariffs. And in the 200-plus page report where both sides outlined their findings, supply and demand was at the center of it all. Commissioners considered both aftermarket and original equipment sales, though the growth in the aftermarket was a huge consideration. Between 2013 and 2015, the data submitted to the ITC points to volume growth of nearly 25% in the aftermarket. In that same period, the domestic industry’s presence in the aftermarket grew only 1.4%. Here’s a look at some of the factors considered. Supply: The domestic industry held the largest share of the U.S. market during the period of investigation, but its share steadily declined from 53.3% in 2013, to 48% in 2014, to 45.6% in 2015. In 2015 the four largest domestic producers of truck and bus tires were Bridgestone Americas Inc., Goodyear Tire & Rubber Co., Continental Tire the Americas LLC and Michelin North America Inc. Chinese tires were the second largest source of supply for the U.S. market during the same period. Market share for Chinese tires grew from 28.7% in 2013 to 33.2% and 33.6% the next two years. Imports from countries other than China grew from 18% market share in 2013 to 18.7% in 2014 and 20.8% in 2015. Canada, Japan and Thailand were the leading sources of imported tires from this group. Demand: Using data from questionnaires in the investigation, as well as U.S. import statistics, the commission determined U.S. consumption of truck and bus tires increased from 21.9 million tires in 2013, to 25.3 million tires in 2014, to 26.5 million tires in 2015 — an increase of 21%. The increase of imported truck and bus tires from China during that same time frame was 41.9%, from 6.3 million tires in 2013 to 8.9 million tires in 2015. Commissioners who voted to impose tariffs said that increase allowed imported products from China “to take market share directly from domestic producers.” Domestic market share fell 7.7%, while the Chinese market share grew 4.9%. Demand for OE tires is driven by heavy truck sales, which increased between 2013 and 2015. Demand

for aftermarket tires is compelled by truck tonnage, which “increased steadily.” Sales of both domesticmade tires and imports from countries outside of China “were made predominantly in the aftermarket.” U.S. producers reported an increase in demand, while importers said it was a mix of either increased or fluctuating demand. “U.S. purchasers were evenly divided between no change and decreased demand, and no purchasers reported either demand increases or fluctuations.” There’s one supply-and-demand assertion the dissenting commissioners didn’t buy — that imported truck and bus tires from China were filling a demand the domestic tire market couldn’t meet. The commissioners said the U.S. industry had capacity available, and maintained higher inventory levels during the period. Also, only two of 14 questioned purchasers said they started buying imported products because of availability. Price was a much more common influence. Pricing: Both sides agreed on two facts. Chinese tires undersold domestic truck and bus tires between 2013 and 2015, and raw material prices dropped during the same period. Commissioners called the underselling “pervasive.” Chinese tires undersold domestic ones in 79 of 85 comparisons, in both OE and the aftermarket. But the majority of commissioners determined the underselling didn’t prevent the domestic industry from increasing shipments or prices. The two commissioners who voted in favor of tariffs pointed out the underselling averaged 38.5% between 2013 and 2015. “We find that the significant volume of subject imports, at prices that undersold the domestic like product and depressed domestic prices, adversely impacted the domestic industry.” Purchasing: The commission found there is some degree of substitutability between the domestic and imported products, and certain factors play into a purchasing decision. Purchasers cited quality, price and availability as their key considerations. A majority of purchasers (11 out of 20 surveyed) indicated they only sometimes purchase the lowest priced product. Here’s one disconnect: 34 of 39 importers, and 13 of 20 purchasers said branding influences the price customers are willing to pay for truck and bus tires. Only two of six producers indicated the same thing. — Joy Kopcha

Chinese tires undersold domestic ones in 79 of 85 comparisons.

MTD April 2017

Quik-Link: 800-687-1557 ext. 14104

News/views

bites

TIA picks two hotels A pair of hotels will host the Tire Industry Association (TIA) during the 2017 Global Tire Expo and Specialty Equipment Market Association Show, Oct. 31-Nov. 3. All pre-show events will be held Oct. 30 at both Bally’s Las Vegas and Paris Las Vegas. Nexen markets on a sleeve Nexen Tire Co. Ltd. has created a first-of-its-kind partnership as the Official Sleeve Partner of the Manchester City Club. The Nexen logo will appear on the club’s uniform sleeve for all league games in 2017-2018. Vogue names sales leader David Long will lead the effort at Vogue Tyre & Rubber Co. to continue to grow the Signature V Black line of tires with independent tire dealers across the U.S. Yokohama completes acquisition Yokohama Rubber Co. Ltd. has finalized its acquisition of Aichi Tire Industry Co. Ltd., a maker of solid tires and press-on tires and other industrial rubber products in Japan. Giti fights trafficking Giti Tire (USA) Ltd. has provided the tires for a Kenworth truck that’s rolling across the U.S. on a special mission, to raise money for the Truckers Against Trafficking organization. Point S adds manager Gary Sass has joined Point S North America as its first network operations manager. He will be responsible for continuing the synergy between the Point S entities in the U.S. and Canada, and working to expand the company’s network, partnerships and brand across North America. Fishing with General Tire Bass fishing fans can win a VIP fishing trip with pro anglers Skeet Reese and Edwin Evers from the General brand of Continental Tire the Americas LLC. Fans who share fishing photos on social media using the #ReelJobSweepstakes hashtag, and tag General Tire, are entered to win.

Consumers pick one big winner in tire satisfaction In a survey of nearly 30,000 consumers, one tire brand was the clear winner: Michelin. It took the top spot in all four categories of the J.D. Power 2017 U.S. Original Equipment Tire Customer Satisfaction Study. Satisfaction is measured in four areas: tire wear, tire ride, tire appearance and tire traction/handling. Study rankings are based solely on owner experiences with their tires after two years of vehicle ownership. The study groups vehicles into four segments — luxury, passenger car, performance sport and truck/utility. And based on a 1,000-point scale, Michelin ranked highest in each category: luxury (757); passenger car (743); performance sport (746); and truck/utility (712). Luxury: In the luxury category, Michelin was the only brand to beat the segment average of 723. Pirelli (722) and Bridgestone (720) were ranked second and third, followed by Goodyear (711), Dunlop (706), Continental (689) and Hankook (584). Passenger: No surprise this segment features the most brands. Pirelli (710), Goodyear (702) and Nexen (689) all beat the segment average of 684, followed by Hankook (677), Continental (675), Kumho (665), Bridgestone (662), Yokohama (661), Toyo (658), Dunlop (649) and Firestone (642). Performance: Following the leader, Michelin, was Goodyear (728), Bridgestone (712), and Pirelli (706). The segment average was 710. Truck/utility: Michelin’s 712 points led Goodyear (687), BFGoodrich (667) Hankook (664), Continental (662) and Bridgestone (659). The segment average was 670. The study also found that across the four vehicle segments, customer satisfaction with poor weather traction improved, and the number of wet traction problems decreased between the 2015 and 2017 studies.

The difficulty of recruiting luxury vehicle owners to your store When it comes time to replace tires on a luxury vehicle, 58% of owners are more likely to stick with the original equipment brand. And nearly half of those consumers intend to return to the car dealership to buy replacement tires. These findings also are part of the J.D. Power 2017 U.S. Original Equipment Tire Customer Satisfaction Survey. The brand loyalty among luxury vehicle owners is higher than that of vehicle owners as a whole – 31%. And while 46% of luxury vehicle owners plan to return to the car dealer to purchase replacement tires, 33% of mass market vehicle owners plan to return to the car dealership. What’s a luxury vehicle? J.D. Power defines the category with these brands: Acura, Audi, BMW, Cadillac, Infiniti, Jaguar, Land Rover, Lexus, Lincoln, Mercedes-Benz, Porsche and Volvo. The study is based on responses from owners of 2015 and 2016 model-year vehicles, and was fielded between October and December 2016.

MTD April 2017

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News/views

bites

RMA projects slight growth Replacement and consumer tire shipments will be up in 2017 compared to last year, according to the Rubber Manufacturers Association (RMA). So will original equipment passenger tire shipments. Overall U.S. tire shipments will increase by 1.4 million units in 2017, up 0.4%. Centric Parts earns award Centric Parts received the Outstanding IT Initiatives Partner award from the Automotive Parts Associates (APA). It’s the eighth time the company has been selected by APA members as an outstanding partner. Bridgestone names tech chief Nizar Trigui has assumed the newly created position of chief technology officer at Bridgestone Americas Inc. He comes with more than 25 years of experience in the automotive industry. Kenda sponsors off-road event American Kenda Rubber Industrial Co. Ltd.’s Kenda brand is a new tire sponsor of Vore Adrenaline Compound, an off-road driving experience based in Las Vegas. Record year for ITDG The Independent Tire Dealers Group LLC (ITDG) recorded another year with new highs for both top- and bottom-line results. The group added 16 new members and total purchases exceeded $210 million. Triangle nabs Phillips Rick Phillips is leaving Yokohama Tire Corp. after 18 years to join Triangle Tire USA as vice president of sales. ATD has new CFO American Tire Distributors Inc. (ATD) has hired Bill Williams as its new chief financial officer. He has served as interim financial executive advisor since September 2016. Wegmann opens new DC Wegmann automotive USA Inc. is moving into a larger distribution facility in Phoenix to serve its West Coast customers.

Merlin 200,000 Mile Shops offer online tire sales Merlin 200,000 Mile Shops has added an online tire shopping tool to its website that gives consumers a good-better-best recommendation. The online tire wizard is “designed to make tire shopping easier and more convenient,” Merlin 200,000 Mile Shops says. The company, formerly known as Merlin Muffler & Brake, is owned by Driven Brands, the same company that owns Meineke Car Care Centers and other automotive service retailers. When consumers go to the Merlin website, they first select their preferred Merlin shop, and then search for tires using vehicle information or tire brand. Shoppers see the good-better-best recommendations, but also can browse through all of the tires and brands available. Merlin, which has focused its in-store tire sales on Continental and General brand tires, offers other brands online, including Goodyear, Cooper, Pirelli, Bridgestone and Uniroyal – as evidenced by a trial search on the website. Among the benefits the company highlights for its online shopping tool is “low internet pricing” without extra shipping fees. Customers pay in-store at the time of installation.

Nokian picks board member as next CEO Nokian Tyres plc has appointed one of its board members, Hille Korhonen, as the company’s next CEO and president. She will take her new position June 1. “Hille Korhonen brings extensive leadership experience and excellent brand expertise to this position,” says Petteri Walldén, chairman of the board of directors. Korhonen has more than 20 years of experience in international consumer business and global industrial operations. She has Korhonen joins Nokian after serving as CEO of been a member of the Nokian board since 2006. Alko Inc. since 2013. Andrei Pantioukhov has served as interim CEO and president since January 2017 and will continue in this role until Korhonen assumes her duties as CEO. After June 1, 2017, Pantioukhov will continue as the executive vice president of Nokian, general manager of its Russian operations, and as a member of the group’s management team.

Telle Tire acquires another dealer For the second time in less than four months, Telle Tire & Auto Service Inc. has acquired an independent tire dealer in the greater St. Louis, Mo., area. The company acquired Safe Way Tire Center Inc., dba Safeway Tire & Auto in St. Charles, Mo., on March 31, 2017. Safeway Tire opened its doors in 1964. Jay Moore, a second generation owner, along with partner Dennis Budde, have operated the family business since 1985. Aaron Telle, CEO and president of Telle Tire, says, “This is a great addition to the Telle Tire family and we believe the culture of Safeway Tire fits nicely into our organization.” The deal gives Telle Tire a total of six retail stores in the greater St. Louis area.

MTD April 2017

Quik-Link: 800-687-1557 ext. 14106

News/views

dates

April 27-29 Arkansas Independent Tire Dealers Association Convention, Wyndham Hotel, Little Rock, Ark. (501) 940-5979 www.aitda.net April 28-30 Virginia Automotive Association Convention and Trade Expo, Williamsburg Lodge, Colonial Williamsburg, Va. (804) 739-1400 www.vaautomotive.org May 24-28 Autopromotec, Bologna Exhibition Centre, Bologna, Italy +39 051.6424000 www.autopromotec.com June 14-16 Latin American & Caribbean Tyre Expo, ATLAPA Convention Center, Panama City, Panama (786) 293-5186 www.latintyreexpo.com July 14-15 Alabama Tire Dealers Association Convention, Perdido Beach Resort, Orange Beach, Ala. (256) 616-3587 www.alatiredealers.com July 14-16 Georgia Tire Dealers & Retreaders Association Annual Conference, One Ocean Resort & Spa, Atlantic Beach, Fla. (770) 947-2323 www.gtdra.com Aug. 21-23 China International Tire Expo 2017, Shanghai World Expo Exhibition & Convention Center, Shanghai, China +86 10 85898181 www.citexpo.com.cn Aug. 24-26 The Great American Trucking Show, Kay Bailey Hutchison Convention Center, Dallas, Texas (888) 982-2629 www.truckshow.com

Plaza Tire Service was founded in 1963 by Vernon Rhodes, and its headquarters is in Cape Girardeau, Mo. Six employees work at the new store in Moberly, Mo.

Plaza Tire opens its 60th store Plaza Tire Service Inc., a second-generation tire dealer with stores in four states, has opened its eighth location in mid-Missouri, and its 60th store overall. The store in Moberly, Mo., is about 5,400 square feet with seven service bays. “As we build new stores, we’re always looking for opportunities to make the workflow as efficient as possible for our employees, and to make the showroom and waiting area open and welcoming for customers,” says Scott Rhodes, who owns the dealership with his brother Mark Rhodes. “Our stores feature large windows into the shop area so customers can see what’s happening as our technicians work on their vehicles. We also have comfortable seating, televisions and complimentary Wi-Fi available.”

Sales pro joins Modern Tire Dealer staff Modern Tire Dealer (MTD) has hired Bob Marinez, an integrated media sales expert with decades of experience. He holds a bachelor’s degree from Western Michigan University and has worked in industry as well as businessto-business publishing for Hanley Wood and Penton Media. Marinez joins the MTD sales team serving the Midwest and South regions, as well as classified advertising.

Bob Marinez and his wife Chris live in North Olmsted, Ohio, and their daughter Renee is a junior at the University of Cincinnati.

Tire Rack’s Street Survival program turns 15

This year Tire Rack Inc.’s Street Survival program is celebrating 15 years of teaching teens behind-the-wheel skills. In 106 classes in 2016, more than 2,800 teen drivers learned how to drive smarter and safer through the national, nonprofit advanced teen driving program. “Since our very first class in 2002, we have educated more than 21,000 young drivers about the maintenance needs of their vehicles and the maneuvers that will keep them safe in emergency situations,” says Bill Wade, national program manager for Tire Rack Street Survival. ■

MTD April 2017

Quik-Link: 800-687-1557 ext. 14107

millennial star. A protégé. These are some of the words the people at 1-800EveryRim.com use to describe Vahé Michaelian, the 25-year-old who works as the wheel seller’s warehouse manager. At the age of 24 Michaelian became the youngest board member ever to serve the California Tire Dealers Association. He’s also active in the Trex Fraternity of California, a group that raises money for charitable causes. He was named Junior Trexman of the year in 2014. Chase Potter, manager of 1-800Every Rim, calls Michaelian “a smart, hard-working young man,” and a “great protégé to have around!”

VAHÉ MICHAELIAN Warehouse manager 1-800EveryRim.com LLC Santa Fe Springs, Calif. What was your first job in the industry? I started out preparing wheels for shipment, cleaning, touching up and boxing. I also did other warehouse duties, including checking and sorting wheels, and made delivery runs. What attracted you to the industry?

I have an interest in cars and wheels, and my uncle, Billy Eordekian, has been involved for many years.

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

Moving into a position of management and earning the respect of more experienced people, and learning every day how to be better at something when I had little experience.

Who has had the biggest influence on your career? month, and rned 25 this Michaelian tu the wheel in ng ki or tw him building when he’s no d fin ht you mig warehouse, reading. model cars or

My uncle Billy has had the biggest influence on my career. He has been involved in the industry his whole life and gave me an opportunity to work. His passion has inspired mine.

Do you have a bright young leader like Michaelian working in your organization? Modern Tire Dealer wants to get to know the smart young leaders making a difference in the tire industry and propelling it into the future. Point those who are On the Rise to our nomination form at www.moderntiredealer.com/ontheriseform.

MTD April 2017

Quik-Link: 800-687-1557 ext. 14108

NumbersThatCount

Relevant statistics from an industry in constant motion.

E T A B RE

70,000+ 55% 68% Number of domestic and international buyers at the 2016 Specialty Equipment Market Association (SEMA) Show. Source: Specialty Equipment Market Association

According to the latest Hankook Tire Gauge Index, 55% of Americans have purchased tires through a rebate offer.

Percentage of Canadians who use winter tires. Source: Tire and Rubber Association of Canada 2016 Winter Tire Report

25%

Formula One regulation changes for next season mean tires will be around 25% wider, with rears up from 325 mm to 405 mm, and fronts up from 245 mm to 305 mm. Diameter also will increase very slightly, though wheel rim size remains unchanged at 13 inches.

15% 32 mil Number of drivers who properly check their tire pressure.

Source: Rubber Manufacturers Association

1997

Source: Pirelli & C. S.p.A.

The year Pam Fitzgerald (now Gatto) took the reins of the Tire Association of North America (now TIA) as its first woman president.

$60,000 Source: Tire Industry Association

Amount in scholarships awarded to female students in 2016 by the Car Care Councilâ€™s Women in Auto Care. Source: Car Care Council

Number of stranded motorists AAA responded to in 2016. Source: AAA

MTD April 2017

Quik-Link: 800-687-1557 ext. 14109

Your marketplace

Sell-out trends will accelerate throughout the next six months

ccording to the results of our survey, as a large percentage of the survey respondents demand for passenger and light truck indicated they, too, anticipate sell-out trends replacement tires declined in February. will accelerate throughout the next six months. Indeed, from a volume standpoint, the dealers The sharp move in raw material prices since reported they sold 1.4% fewer tires in February 3Q16 combined with nearly every notable tire relative to the previous year’s period. The decline manufacturer already announcing or enacting marks the second straight month of weak results. sharp price hikes almost guarantees that tire costs Needless to say, the warmer-than-normal winter are going to be meaningfully higher in 2017. At weather seen in January persisted in February, this point, we think the dealer community will creating an unfavorable operating backdrop. In By Nick Mitchell be able raise prices to offset the cost pressures. In fact, nearly every tire dealer and distributor whom our opinion, operators who lead with a model that we spoke with in these markets cited the balmy weather as includes high quality of service at fair prices will be able a notable headwind to sell-out trends of replacement tires to maintain their margin structure in this category, while versus the prior year’s period. Our contacts also suggested those who sell on price alone will only opt to pass along they believe the delayed disbursement of tax refunds to the higher costs and neutralize the impact on gross profit. upwards of 40 million individuals pushed sales out of That said, we are paying close attention to commentary January and February into March, which compounded regarding inventory levels given the slow sell-out trends the weather headwinds. In our opinion, the slow start to in the first two months of the year. At this point, we have the tax season is a sizeable hurdle for the industry given not heard anything too alarming on this front; however, the fact that many households earmark these funds for big we will start to worry more about this risk if retail demand ticket purchases, such as new tires. The Internal Revenue remains weak in March and April. To this point, we were Service’s data indicates cumulative tax refunds were encouraged to hear dealers indicate the second half of down 7% year-over-year through the end of February February was much stronger than the first half of the month despite disbursements being up over 80% since Feb. 10. and strong demand continued into March. The latter stat helps explain why many of the respondents

Monthly survey

How dealers view near-term business Dealers

OCT

NOV

DEC

JAN(R)

Passenger tire Will improve Will worsen Will stay level

50% 0% 50%

25% 0% 75%

67% 0% 33%

Truck tire Will improve Will worsen Will stay level

50% 0% 50%

100% 0% 0%

50% 0% 50%

50% 25% 25%

40% 0% 60%

50% 17% 33%

R-Revised

FEB(P) FEB(15)

P-Preliminary

noted traffic and sales picked up significantly in the second half of the month. Lastly, the loss of Leap Year Day also contributed to the shortfall. That said, these headwinds were partially offset by the benefit of a better economic backdrop for consumers including, higher employment levels, improving consumer sentiment and low fuel prices. Despite the slow start to the year, we continue to believe a favorable backdrop, including low fuel prices, solid job growth, an expanding car parc and healthy miles driven trends, combined with more normalized weather patterns going forward, should lead to decent volume growth in 2017. It is worth noting that most dealers shared this sentiment,

A number of independent tire dealers were surveyed concerning current business trends. Except for tire prices and costs, the results of the February 2017 survey are compared with those of February 2016. Go to www. moderntiredealer.com for complete survey results.

Dealer costs modestly increase Branded tire costs increased 2.8% and value tires were up 2% versus the same period a year ago. Remember, the first pricing increases from manufacturers became effective in February 2017 with the majority following in March and April. As such, cost pressures will continue to build. Meanwhile, the dealers noted like-for-like incentives were firmer (less discounting) in the period due to the industry’s successful rebalancing of inventory levels in 2H16.

Repair sales were essentially the same year-over-year Dealers indicated service sales, which accounted for a net 29% of total revenues, were flat on a year-over-year basis, which compared to increases of 7% in October, November and December and a 5% increase in January. ■ Nick Mitchell is a managing director, research analyst with Northcoast Research Holdings LLC based in Cleveland, Ohio. Mitchell covers a variety of subsectors of the automotive industry.

MTD April 2017

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Focus on Modern Tire Dealer

We are always there for our dealers Globetrotting keeps us, and therefore you, informed

rank Bolt was up on stage talking about his late father, John Bolt Jr., who was being inducted into the North Carolina Tire Dealers Association Hall of Fame. The elder Bolt was entering the hall with Leonard Turnage, with whom he had started Interstate Tire Co. in 1964. Out of the blue, Frank talked about a story that had appeared in Modern Tire Dealer before his father had died. He referenced some of his dad’s quotes to illustrate his father’s business philosophy, and his strong relationship with Turnage. I wrote that story (pictured at right) in 1987, shortly before John Bolt passed away. Hearing his son talk about my story was a strong reminder of how long I had been in the tire industry, and the importance of what we do. The Modern Tire Dealer staff often attends events in case you can’t attend or aren’t invited. (If you aren’t a dealer who sells the Goodyear brand, why would the company invite you to a dealer meeting?) We not only report on what was said that affects all dealers, but also ask about what was not said. Admittedly, we have a lot of fun along the way. The early part of the year is always busy for MTD’s editorial staff and Publisher Greg Smith, with dealer meetings seemingly scheduled every week. Recently, Senior Editor Ann Neal attended the Michelin Pilot Sport 4S launch in Palm Springs, Calif.; the General Altimax Arctic 12 event near Montreal, Quebec; and the new BFGoodrich winter tire introduction in Ottawa (Ann will be an honorary French Canadian before the year is over). Senior Editor and Digital Projects Editor Joy Kopcha visited with retail tire dealers hosted by K&M Tire Inc. in Kansas City, Kan.; Point S/Tire Factory Inc. in Phoenix; and American Tire Distributors Inc. (Tire Pros) in New Orleans. Managing Editor Lori Mavrigian flew to Hawaii to cover the Tire Industry Association Off-the-Road Tire Conference. And Greg Smith just returned from the grand opening of the new Apollo Tyres Ltd. plant in Budapest, Hungary. His interview with

“Autonomous vehicles are decades away from becoming reality,” said Bob Ulrich at the North Carolina Tire Dealers Association’s new Expo Forum. Ulrich moderated the lively panel of four independent tire dealers, including 2016 Tire Dealer of the Year Alpio Barbara.

MTD March 2017

Neeraj Kanwar, Apollo’s vice chairman and managing director, will appear in the May issue. As for me, I will write about my cruise with the Continental Elite Gold dealers in our May issue. I also attended annual conventions put on by the North Carolina Tire Dealers Association and New England Tire & Service Association. Look for those photos both online and in the magazine in the near future. There are more events to come, leading up to the SEMA (Specialty Equipment Market Association) Show, Global Tire Expo and AAPEX (Automotive Aftermarket Parts Expo) in Las Vegas Oct. 31-Nov. 3. If you can’t make it, don’t worry. We will be there. — Bob Ulrich

Managing Editor Lori Mavrigian attended the Tire Industry Association’s Off-the-Road Tire Conference in Oahu, Hawaii, recently. It was held at the Turtle Bay Resort on the island’s north shore. See her write-up on cementing OTR relationships on page 49. Editor Bob Ulrich, right, talks with Bill Caldwell, vice president of consumer replacement sales and marketing for Continental Tire the Americas LLC, while cruising on the high seas.

Senior Editor Ann Neal is behind the wheel of a Ferrari California, one of the super performance cars equipped with the new Pilot Sport 4S UHP tire at the Michelin Pilot Experience event held earlier this year. The cars were driven through beautiful Joshua Tree National Park near Palm Springs, Calif.

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feature

Beware of ransomware One dealer shares his mistakes to help you fight a faceless cyber thief By Bob Ulrich

ll the tire dealer wanted to do was upgrade his point-of-sale software. He chose an in-house server-based system, and made sure his employees received the proper training. After a “crazy busy” first few days, the training became second nature, some of the bugs worked themselves out, and the new system, he said, “normed down.” Less than two weeks later, his system was hacked and held for ransom. He was asked to pay up or he would lose all his POS information. “It’s nothing you want to re-live,” said the dealer when contacted by Modern Tire Dealer. “It’s nothing you want to explain. You think you’re smart enough to run your business.” The cost of ransomware to U.S. businesses is hard to quantify. In 2016, businesses paid out an estimated $1 billion, compared to $24 million the previous year, based on FBI data. However, those numbers only take into account known victims. Losses due to downtime also are not included. As of May 2016, the FBI estimated ransomware had cost U.S. small businesses more than $75 million in downtime alone in less than a year and a half. In its 2016 report, “Hackerpocalypse: A Cybercrime Revelation,” cybersecurity company the Herjavec Group estimated the annual cost of global cybercrime will reach $6 trillion a year by 2021. Ransomware is expected to make up an increasingly larger percentage of that total over the next five years.

What is ransomware? According to the FBI, ransomware “is a form of malware that targets your critical data and systems for the purpose of extortion.” It is frequently delivered through “spearphishing” emails. “After the user has been locked out of the data or system, the cyber actor demands a ransom payment. After receiving payment, the cyber actor will purportedly provide an avenue to the victim to regain access to the system or data.” Wayne Croswell, CEO and president of WECnology LLC, says ransomware attacks are typically carried out using a Trojan disguised as a legitimate file. “They enter a system or network through, for example, a downloaded file or a vulnerability in a network service. The

program then runs a payload, which locks the system in some fashion, or claims to lock the system but does not (e.g., a scareware program). Payloads may display a fake warning purportedly by an entity such as a law enforcement agency, falsely claiming that the system has been used for illegal activities, and contains content such as pornography and ‘pirated’ media. “Payment is virtually always the goal,” he says, “The victim is coerced into paying for the ransomware to be removed — which may or may not actually occur — either by supplying a program that can decrypt the files, or by sending an unlock code that undoes the payload’s changes. Payment can be as little as $10 or even $1,000, and many victims quickly pay it to get their system back. The attacker can infect thousands of systems and collect millions of dollars in ransom.” When ransomware first hit the scene, computers predominately became infected with it when users opened email attachments that contained the malware, says Croswell. “But more recently, we’re seeing an increasing number of

From Russia without love Ransomware is a global phenomenon “While initially popular in Russia, the use of ransomware scams has grown internationally,” says Wayne Croswell, CEO and president of WECnology LLC and a frequent contributor to Modern Tire Dealer. “In June 2013, security software vendor McAfee released data showing that it had collected over 250,000 unique samples of ransomware in the first quarter of 2013, more than double the number it had obtained in the first quarter of 2012. “Wide-ranging attacks involving encryption-based ransomware began to increase through Trojans such as CryptoLocker, which had procured an estimated $3 million before it was taken down by authorities, and CryptoWall, which was estimated by the U.S. Federal Bureau of Investigation to have accrued over $18 million by June 2015.”

MTD March 2017

Ransomware attacks are typically carried out using a Trojan disguised as a legitimate file. The program then runs a payload, which locks the system. Payloads may display a fake warning purportedly by an entity such as a law enforcement agency.

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Ransomware incidents involving so-called ‘drive-by’ ransomware, where users can infect their computers simply by clicking on a compromised website, often lured there by a deceptive email or pop-up window. “Another new trend involves the ransom payment method. While some of the earlier ransomware scams involved having victims pay ‘ransom’ with pre-paid cards, victims are now increasingly asked to pay with Bitcoin, a decentralized virtual currency network that attracts criminals because of the anonymity the system offers.”

To pay or not to pay It was a day he will never forget. “I came into the store and none of the computers were able to sign on to the server,” said the tire dealer. “So I went back to the server and logged in. There was a message on the screen that said my server had been encrypted, and to get it unlocked I needed to write to an obscure email address for more info. “I immediately called anyone I knew in IT who would take my phone call, including my regular IT guy, who was on vacation. All of the feedback was not good. It was ‘pay what they ask for’ or ‘pull the server off-line and refresh it as new.’ “I decided on the latter. I wouldn’t pay.” The dealer was lucky. He had only been using the new system for a short time, so he didn’t lose much information. “It was pretty mundane stuff anyway,” he said. “The data I collected wasn’t harmful. It was not like collecting social security numbers or blood types or financial information.” What he did not do was contact law enforcement. The FBI, Central Intelligence Agency, U.S. Department of Homeland Security, Department of Justice, and the National Security Agency, among others, consider this a mistake. “We strongly encourage you to contact a local field office of the Federal Bureau of Investigation (FBI) or U.S. Secret Service immediately upon discovery to report a ransomware event and request assistance,” says the U.S. government in an interagency technical guidance document, “How to Protect Your Networks from Ransomware” (https://www. justice.gov/criminal-ccips/file/872771/ download). “Law enforcement may be able to use legal authorities and tools that are unavailable to most organizations. Law enforcement can enlist the assistance of international law enforcement partners to locate the stolen or encrypted data or identify the perpetrator. These tools and relationships can greatly increase the odds of successfully apprehending the criminal, thereby preventing future losses.” There are serious risks to consider before paying the ransom, according to the document. • Paying the ransom does not guarantee access to your data once the ransom is paid. • Paying the ransom opens the door to future attacks because the attackers know you will pay.

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MTD March 2017

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Ransomware • After paying the ransom, some victims have been asked to pay even more to get the encryption keys. (Surprisingly, the dealer said he was told by a number of IT people there is some honor among cyber thieves.) • Paying ransom supports and encourages this illegal activity.

The U.S. government does not encourage paying the ransom, but doesn’t prohibit it, either. “Whether to pay a ransom is a serious decision requiring the evaluation of all options to protect shareholders, employees and customers.”

‘You think you’re smart enough to run your business.’ Prevent defense “As with other forms of malware, security software might not detect a ransomware payload, or, especially in the case of encrypting payloads, only after encryption is under way or complete, particularly if a new version unknown to the protective software is distributed,” says Croswell. “New categories of security software, specifically deception technology, can detect ransomware. Deception technology can detect ransomware and notify cyber security teams, which can then shut down the attack and return the organization to normal operations.”

Using software or other security policies to block known payloads from launching will help to prevent infection, but will not protect against all attacks, he says. “There are several tools intended specifically to decrypt files locked by ransomware, although successful recovery may not be possible. To help prevent being hacked and held for ransom, Croswell suggests the following eight preventive measures:

1. Make sure you have updated antivirus software on your computer. 2. Enable automated patches for your operating system and web browser. 3. Have strong passwords, and don’t use the same passwords for everything. 4. Use a pop-up blocker. 5. Only download software — especially free software — from sites you know and trust (malware can also come in downloadable games, file-sharing programs, and customized toolbars). 6. Don’t open attachments in unsolicited emails, even if they come from people in your contact list, and never click on a URL contained in an unsolicited email, even if you think it looks safe. Instead, close out the email and go to the organization’s website directly. 7. Use the same precautions on your mobile phone as you would on your computer when using the internet. 8. Conduct regular system back-ups, and store the backed-up data offline.

MTD March 2017

Quik-Link: 800-687-1557 ext. 14114

Ransomware The Department of Justice has one more step to limit a ransomware infection: “No users should be assigned administrative access unless absolutely needed, and those with a need for administrator accounts should only use them when necessary.”

‘I needed an action plan in place to know what to do if it happened.’ Going forward The attack was a wake-up call for the dealer, who requested anonymity in case the previous hacker decided to accept the “challenge” of his new system. “I can tell you what I did wrong,” he says. “I did not go through a thorough process to put system controls in place that would have helped prevent this from happening. I needed an action plan in place to know what to do if it happened.” “Also, by using and in-house server, it was easier to ‘open up the doors’ for hackers to come in. When we installed it, the ports got left open on the router. “We don’t have a server in-house anymore. We’re using one in the cloud.” And he backs up the data regularly. “It was a horrible experience,” he said. “Could it have been avoided? I think so. But hindsight is 20-20. If hackers really want to get in, they will, but I’m not going to help them.” ■

Can the cloud protect you? Not completely, says WECnology CEO Discount Tire, the largest independent tire dealer chain in North America, recently announced a multi-year, multi-million dollar cloud-based service agreement with OneView Commerce plc. “We found that the overall savings in time and cost make cloud-based delivery of a digital store platform the most efficient and economical arrangement for achieving the operational return and improved customer experience that is at the heart of our strategy,” said Tom Williams, senior vice president for ReinaltThomas Corp., which does business under the trade name Discount Tire in most of the U.S., America’s Tire in parts of California, and as Discount Tire Direct online. But does a cloud-based system protect the company against ransomware? Not completely, says Wayne Croswell, CEO and president of WECnology LLC. “Having a cloud solution doesn’t eliminate ransomware from happening,” he says. “But when you host your application with a trusted secure company, they have the highest level of protection software which can help prevent hacks from getting in. “But you still have computers at the desks of employees and counters, and if someone there gets a ransomware attack, it could infect the cloud instead of their in-house network.”

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MTD March 2017

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feature

Real world experience with R1234yf The new refrigerant is finally here; are you ready? By Jacques Gordon

n 2014, Fiat Chrysler began filling the air conditioning systems on almost all of its models with R1234yf refrigerant. That same year, General Motors (GM) began using it in the Cadillac XTS. Since then, GM has been gradually switching over its entire line of vehicles to R1234yf, and Ford has also begun using it, too. Much has been written about what to expect when the industry changes over to the new refriger-

System hardware Air conditioning systems filled with R1234yf are almost identical to those using R134a, but there are a few important differences. First of all, there is one additional component: an inline heat exchanger (IHX) that has two concentric chambers. Liquid refrigerant from the condenser flows through the inside chamber, and the outside chamber surrounds it with vapor flowing out of the evaporator on its way back to the compressor. The still-cool vapor absorbs heat out of the liquid refrigerant, “sub cooling” it below condensation temperature to improve overall system efficiency. There are two basic types of IHX. On A/C systems with an orifice tube, the IHX is generally (but not always) built into the accumulator. On an expansion valve system, it’s more likely to be a separate part, a tubewithin-a-tube that has a pair of inlet/outlet fittings on each end. There are no moving parts to wear out, so unless it’s damaged there’s no need to replace one. Still, it’s important to know it’s there and what it does. Another difference involves the new service ports and caps. The service ports are designed to make it impossible to connect service equipment that’s made for systems using other refrigerants. Of course, adapters are available and some shops may actually find a legitimate reason to use them, but we’ll discuss that later. Service ports have been identified as a source of refrigerant leakage and air contamination. If the vehicle sits long enough at a low-enough ambient temperature, most of the refrigerant will condense to a liquid and system pressure can fall below atmospheric pressure. This will allow ambient pressure to unseat

Timely A/C service can prevent your customers — and their vehicles — from becoming overheated! The bottom photo shows the label on a new Malibu. It is on the firewall and indicates refrigerant type and quantity and the correct type of oil. Notice the “flammable” icon.

ant, but up until now it was all speculation. Shops that do A/C work for collision repair have been working with R1234yf for three years, and with some 2014 models just starting to come out of warranty now, some independent tire dealers and technicians are finally gaining real world experience with the new refrigerant and the new tools and service techniques. Here is some of what they’ve learned so far.

The inline heat exchanger (IHX) is the thick, striped part toward the left of the service port. It will be difficult to use this part of the air conditioning system when using temperature readings to analyze system performance.

MTD April 2017

Photo courtesy of Eaton Corp.

An inline heat exchanger (IHX) has concentric inner and outer chambers. Liquid refrigerant from the condenser flows through the main inside chamber, and the outside chamber surrounds it with vapor from the evaporator.

the service port valve and let air into the system, contaminating the system with air. Of course this will never happen in Florida, but sometimes it does happen up North, so the new service port caps have an O-ring to seal the cap to the port. The O-ring not only keeps air out, it also keeps the port clean inside, protecting the valve from debris that can cause a slow leak by preventing it from seating properly after service. The cap is supposed to be tethered to the port so it doesn’t get lost when removed, but some car models have been sold without tethered caps. New caps with a tether are available as replacement parts. Finally, the new A/C systems are fitted with a redesigned evaporator that’s stronger and less likely to leak. That doesn’t mean you shouldn’t check it for leaks, but if you replace one, make sure the package or tag on the new part indicates that it meets the new SAE J2842 standard.

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The service port caps are supposed to be tethered to avoid loss during service. You will note the caps on this 2017 Chevrolet Malibu don’t have tethers, but they do have an O-ring inside to keep the service port clean.

Refrigerant flammability Some service port caps have an icon on the top indicating the refrigerant is flammable. The flammability issue has attracted a lot of attention, prompting the industry to conduct some serious third-party testing. The bottom line is this: The refrigerant will burn, but it takes a lot of heat to ignite it and it burns slowly. Almost every other fluid under the hood

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will light more easily and burn hotter than R1234yf, so the industry has determined that with proper A/C system design, it does not increase the chances of fire in the vehicle. Working with the new refrigerant requires a bit more caution. The new service machines are built with ventilation fans and ignitionproof solenoids and switches. If you’re going to service the system without using one of these new machines, take the same precautions you would when working with a fuel system. Handling and storage require a bit more caution, too. The refrigerant is available in Flushing the air conditioning system with pure refrigerant is a good way easy-to-manage 10-pound containers. Even to remove excess oil, but it will never reliably unblock a condenser that’s clogged with debris from a damaged compressor. though it’s officially classified as “mildly flammable,” warning labels on the container indicate the for servicing R1234yf systems, but it’s not a “convertible.” Once contents to be “highly flammable” because the gas is under reconfigured, it can’t be converted back to the old refrigerant. pressure. Therefore, requirements for safe handling and This means that a shop needing a new R134a machine now storage of R1234yf containers are the same as those for other can buy one knowing that it can be converted when they have compressed flammable gasses. enough business that requires R1234yf service. Since the new machines will not recover contaminated • Refrigerant containers should not be exposed to direct refrigerant, your shop will need some kind of recovery-only sunlight or to temperatures greater than 125 degrees machine. Because R1234yf is mildly flammable, shops should Fahrenheit (52 degrees Celsius). not just use an old R134a machine with fitting adapters; it • Containers should be stored in a cool, ventilated area away must be specifically designed to SAE Standard J2851, which from any possible ignition sources. applies to recovery-only machines. Some machines will simply • Containers should be strapped into place and protected from be described as “spark free” and that’s OK, but the holding physical damage, moisture and corrosive liquids or gases. cylinder must also be rated for flammable gases.

Service equipment

Service techniques

You may already know there are some new A/C service machines on the market designed for use with R1234yf. Here’s a quick summary. The newest recovery/recycle/recharge (RRR) machines are designed to SAE Standard J2843, and they have fittings on the hoses that will only connect to vehicles that use R1234yf. The SAE standard describes the major features of the machine:

Once the machine is connected and the data has been entered, all the tech has to do is follow the prompts on the screen. The machine will identify the refrigerant and then recover the refrigerant (and oil) if it’s at least 98% pure. At this point the procedure can be interrupted if the tech intends to remove parts. Before charging the system, the machine will pull a vacuum and watch for vacuum decay that indicates a leak. If the system passes the vacuum leak test, the machine will install 15% of the total refrigerant charge into the system and prompt the tech to run an evaporator leak test. This consists of turning the blower on low, selecting the floor vents and inserting a leak detector probe into the center floor duct. When the tech confirms there is no leak and pushes the “continue” button, the machine will automatically recharge the system with the correct amount of refrigerant and oil. Finally, it will print a service report that includes the amount of refrigerant recovered and recharged into the system. If the system is already empty, old-school recharging methods still work because the basics are still the same. With the proper gauges, good scales and a vacuum pump, an experienced A/C tech can recharge the system and make it blow cold air. However, for professionals getting paid to do the job, this is not legal. A shop can be fined for doing A/C service without the proper equipment or service reports. Besides, R1234yf refrigerant is so expensive that even a minor leak or accidental loss during service can remove all the profit from the job. The recovery/recycle machines are specifically designed to prevent this.

• It will recover 95% of the refrigerant in the system. • It will recharge the system to within 1/2 ounce of specification. • After recovering 150 pounds of refrigerant, it will not run again until the onboard filter/drier is changed. • It will have a built-in refrigerant identifier or a USB port to connect an identifier. • It will not allow recovery of contaminated refrigerant. • It will not recharge the system if it detects a leak. • It has ventilation fans and non-sparking switches, motors, relays, etc. The recovery and recharge processes are highly automated and/or fully automatic, but the tech may be prompted to run some tests before the machine moves on to the next step. Some of the new machines used by OEM dealerships have software that is specific to those brands, so they might not work on different brand vehicles. However, the machines sold to the aftermarket are universal. New machines are available that are designed to the same SAE standard but equipped with fittings for vehicles that use R134a. New hoses and fittings can be installed to reconfigure it

Photo courtesy of Hecat Inc.

Air conditioning service

MTD April 2017

Contaminated refrigerant

or even technicians might decide to fill a If the refrigerant in the system is less than system with other refrigerants that costs 98% pure R1234yf, the service machine will less than R1234yf. While this is legal and not recover it. At this point you will need most of the alternative refrigerants will work to connect a recovery-only machine and well enough, some are known to be highly collect the refrigerant for disposal. Since the flammable, easy to ignite, and produce refrigerant is flammable, using the proper extremely toxic gases when burned. equipment that meets SAE J2851 standards It’s still early, but because the refrigerant is important, but there’s also another reason is so expensive and the equipment needed to use one of these machines. to service the system is so specialized, we At this point we haven’t found any realthink improper service techniques (pro and world examples of contamination to report. DIY) will make refrigerant contamination However, just as with R134a systems, the a much bigger issue that it has been in the DIYer will cause problems. Consumer-size past. So as your shop prepares to service cars cans of R1234yf refrigerant will be available with R1234yf, make sure the equipment list later this year, but it will cost about five includes at least one refrigerant identifier times more than R134a. Some will contain and a recovery-only machine. Otherwise, the same sealers, dyes and lubricant addiexperienced A/C techs have found nothtives found in consumer-size cans of other ing different when it comes to servicing refrigerants. While there may be situations these systems, and that’s exactly what the when these additives are appropriate, they manufacturers intended. ■ are not recommended or approved by the Consumer-size cans of R1234yf OEM, and they may cause the machine to will be available later this year. Jacques Gordon has worked in the automoabort the service procedure. tive industry for 40 years as a service techniBecause there is no plan to retrofit existing A/C systems to cian, lab technician, trainer and technical writer. His began his use R1234yf, production of R134a will continue indefinitely writing career writing service manuals at Chilton Book Co. He for service. Because fitting adapters are available to connect currently holds ASE Master Technician and L1 certifications R134a service hoses to R1234yf systems, some consumers and has participated in ASE test writing workshops.

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Commercial Tire Dealer™

‘Tires have become a commodity’ Top retreaders prepare for intense competition following the federal government’s tariff decision By Ann Neal

or the first time since Modern Tire Dealer began ranking retreaders in 1988, Goodyear Tire & Rubber Co. is not in the No. 1 spot. The company did not specify the reasons for its lower production totals, but the overall retreading industry has been affected by high volumes of low-cost tires from China. For a while, it looked as if protective tariffs would give U.S. retreaders a chance to rebuild the markets devastated by low-cost Chinese tires. The possibility vanished in February 2017 when the U.S. International Trade Commission (ITC) voted to not levy duties on Chinese truck and bus tires. The ITC decision left many respondents to Modern Tire Dealer’s Top Retreaders survey incredulous. “All of the information that I see points very clearly to the fact that Chinese tire companies are dumping their truck and bus products into the American market,” says Jon Langerak, president of Wonderland Tire Co. Inc., which ranks No. 69 in this year’s MTD’s Top Retreaders list.

The tire molding area at Wonderland Tire’s retread plant. The company has been in the retread business since 1983.

Since the ITC’s vote, Langerak says his inbox has been filled with emails from Chinese tire companies offering new tires priced below the cost of a quality retread. He cited one advertising trailer tires for $104 and drive tires for $125, adding that such emails are a regular occurrence now. ALSO IN CTD “This decision will definitely affect the 2017 MTD Top 50 Retreaders in the tire industry and tire U.S. . . . 44 pricing negatively. New The latest heavy-duty tire changers tire and retread pricing are designed for wide-base tires . . . 47 has been stagnant and ‘Take your customers out of the tire even decreased from business’ . . . 49 four years ago. This is

almost entirely the result of the cheap Chinese truck and bus tires being imported into this country. I predict that most if not all of the new tire and retread price increases that were to take effect in March or April will not take place or be significantly reduced.” Langerak sees no relief. “Most retread plant owners and sales people I have had communication with state that their number one concern today is the dumping of Chinese new tires into the marketplace. Jobs and retread plants are at stake in this decision, and there will be jobs lost and plants closed if this trend continues.” (For details on the ITC’s reasoning for its decision, see page 8 of this edition of MTD.) Bob Majewski has been in the tire industry for 53 years. “I watched the passenger tire retreading disappear with low-cost tires. Now if the new tire companies have their way they will run truck tire retreading out also,” says Majewski, who is chief technical officer at Sumerel Tire Service Inc. Newport, Ky.-based Sumerel Tire Service is ranked No. 54. Noah Hickman, president of H&H Industries Inc., notes that in West Virginia and eastern Kentucky, the mining business has increased since the November election. “As we close February, retread and repair business in this area is better than it has been in the past two years and mining companies are more optimistic. Since January, the natural rubber price has increased, so our costs have jumped up. Almost all the major manufacturers have increased their prices, but the import tires and their cheap costs are now our biggest problem.” Hickman’s Oak Hill, Ohio-based company is in the No. 23 spot. Central Tire Corp. President Terry Westhafer says a tariff would have helped his unit volume immensely. “Now that tariffs are removed I expect an ever-increasing flood of Chinese truck tire imports. The problem will become worse than ever.” Central Tire Corp. is based in Verona, Va. A lot of tire manufacturers were counting on the tariff, according to Kevin Carr, director-tire division of TravelCenters of America LLC’s TA Truck Service Commercial Tire Network. “I think everybody was gearing up for a tariff. Without that I’ve seen a scramble. The number of vendors that have been calling us since this tariff was stricken has been unbelievable. Everybody who thought they weren’t going to be able to sell tires here is now calling us.” The ITC decision will make the retread business tougher, according to Steve Theissen, an owner of T & W Tire and Retread Inc. in Oklahoma City, Okla., which is ranked No. 27. “Now you can buy a Chinese tire for as little as you can cap a tire. It will be much more difficult to sell a cap and casing.” Jeff Lecklider, president of Gem City Tire Inc., says that while his cap and casing sales are down, his custom retreading business is up. “The tariff decision is concerning, but not earth-shattering. The part of our business where we pick up

Commercially viable . . . 50

MTD April 2017

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Top 50 retreaders

John McCarthy Jr., president of McCarthy Tire Service, stands in the company’s new Bandag retread shop, which has two production lines and a capacity of more than 1,000 retreads per day. (Photo courtesy McCarthy Tire Service.)

customers’ worn out tires and retread them is growing.” Dayton, Ohio-based Gem City Tire is ranked No. 40.

There’s a new No. 1 At the top of the rankings, Southern Tire Mart LLC took the No. 1 spot from Goodyear, which dropped to No. 2. Southern Tire Mart reported a nearly 6% increase in medium truck tire volumes while Goodyear’s medium truck tire retread volumes dropped 8%. The acquisition of Cross-Midwest Tire Co.’s three retread plants pushed Pomp’s Tire Service Inc. up from last year’s No. 7 spot into the No. 4 spot. New to the top 10 is Tredroc Tire Services LLC. The company landed in the No. 10 spot after Allen Park, Mich.-based Belle Tire Distributors Inc. merged its commercial division with Tredroc Tire Services Inc. of Elk Grove Village, Ill., in 2016. The “new” Tredroc has six Bandag-system retread plants. McCarthy Tire Service Co. is in the No. 8 spot, unchanged from last year. The company opened a $3.5 million Bandag retread plant in 2016 in Wilkes-Barre, Pa. McCarthy Tire operates eight retreading facilities in Pennsylvania, New York, Maryland, Virginia and North Carolina. Westhafer reports that Central Tire also invested in its operations. The company installed AcuTread mold cure press and matrices for super single 445/50R22.5 drive and trailer retreads as well as a shearography non-destructive casing inspection system. Its STT-1 trailer tread is now SmartWay-verified. New on the MTD retreaders list is Monro Muffler Brake Inc., which debuts at No. 57. The company gained two retread plants when it acquired McGee Tire Stores Inc. and Clark Tire and Auto Inc. in 2016.

Monro increased retread sales about 30% in 2016 from the prior year, according to Joel Zaleski, vice president of acquisitions and operations support. “With the McGee Tire and Clark Tire commercial operations now integrated, we are moving forward with plans to strengthen and grow our commercial operations in Florida and North Carolina, and then into other states we operate in.” He says Monro recently opened a new commercial facility in Fort Myers, Fla., and is currently expanding into the Pensacola, Fla., market with a new commercial facility, according to Zaleski. “We now operate 11 commercial locations in two states, and we look forward to continued growth of our commercial business with the addition of greenfield locations and acquisitions.” No. 6-ranked Best-One Tire Group also added a plant

King Tire Service Inc. in Bluefield, W.Va., was the first ContiLifeCycle licensee in the U.S. The company recently opened a second retread shop in Bristol, Va.

MTD April 2017

through acquisition. The company finalized its purchase of Becker Tire & Treading Inc.’s plant in Great Bend, Kan., in February 2017. Several retread plants closed during the year. Singapore-based manufacturer Omni United (S) Pte. Ltd. acquired A to Z Tire & Battery Inc. in June 2016. After the purchase, Omni United closed A to Z Tire & Battery’s plant. Strouhal Tire Recapping Plant Ltd. in Hungerford, Texas, also closed in 2016 following the death of Don Strouhal in July. The Strouhal family, which continues to operate two retail stores in Texas, told MTD its retreading business was sold to Michelin Retread Technologies Inc.

2 business, fell 10% in 2016 versus 2015. When MTD spoke with Chamblee in March 2017, an 11R22.5 14-ply Westlake brand Chinese drive tire was selling for $230 to $240 and the Westlake trailer tire for $230 to $240 in his market. By comparison, a Firestone drive tire was priced from $370 to $390 and a steer tire from $385 to $390 (the Firestone prices are post-manufacturer price increase). Chamblee is selling retread drive tires with a premium casing for $220 to $230. His customers are choosing a new Westlake tire for $230. “That price point is why the vote was such a big deal to retreaders.”

Dealers try new approaches Despite the challenging retreading environment, Langerak made significant investments in other parts of Wonderland Tire’s business. He says the company is pursuing acquisitions as part of its strategy for growth. The company purchased three locations from independent dealers who wanted to retire, increasing its commercial and retail tire locations to eight stores. Wonderland bought Reed’s Tire in Holland, Mich., in Sept. 2015, JIS Tire in Howard City, Mich., in Oct. 2016, and Root’s Tire in Ludington, Mich., in Dec. 2016. No. 48-ranked Dorsey Tire Co. Inc. is also expanding other parts of its business to offset declines in retreading. “We’ve experienced a tremendous impact in our retreading business with declines above 8% to 10% across the board; our cap casing business has sustained a 20% decrease in business,” says Bruce Chamblee, general manager of the Pooler, Ga.-based company, which operates two commercial outlets. He says Dorsey Tire is an anomaly in terms of tire sales. “We elected for a number of years to stay out of the Tier 3/Tier 4 battle because we didn’t sell an offshore tire other than the Dayton brand that Bridgestone made. We sold a little bit of Cooper Roadmaster but we really steered clear of fighting in that arena. We watched our business in our Tier 2/Tier 3 segment actually fall as well.” With the ITC vote against tariffs, the company took a new approach and began carrying the Westlake brand. “We’ve had to start selling Chinese tires at the detriment to our own retread business because it’s the only way to bring profit into our company and be able to sustain ourselves,” says Chamblee. Sales of Firestone brand truck tires, which are the bulk of Dorsey Tire’s Tier

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Top 50 retreaders There is also increased competition from outlets operated by Love’s Travel Stops and Country Stores Inc. and the TA Truck Service Commercial Tire Network. “I’m already dealing with company-owned operations from Bridgestone, Michelin, Goodyear and Continental,” says Chamblee. “Now I’ve got Love’s Travel Stops and TA putting programs together and competing against me as well. I don’t know a tire dealer in the country that can offer a tire buying program that can tie into fuel purchases.”

‘Tires have become a commodity’ Chamblee feels that dealerships like his will have to market themselves as service companies, not tire businesses. “Tires have become a commodity within the tire business.” Fleet operators are concerned with uptime and keeping the trucks

moving. “It’s not who sells what tire brand but who can get a fleet up and going the fastest. To survive and continue to operate in our market, we’re not going to be a tire company anymore. We’re going to solicit our business through the service capabilities we have. It’s the same thing that Love’s and TA are doing,” says Chamblee. Dorsey Tire currently offers 24-hour road service, on-site tire service, fleet checks, and a mounted tire program. The company is expanding its on-site truck and trailer repair, truck chassis repair, and in-shop major truck and trailer repair services. As part of a major expansion to its trailer repair service, Dorsey Tire just completed construction of an 18-bay trailer repair facility. Mobile truck and trailer repair services also are being added. Atlanta Commercial Tire Inc.’s strategy also centers on

‘The whole retread industry is being hurt’ Jon Langerak is president of Wonderland Tire Co. Inc., a third-generation family-owned company in Byron Center, Mich. He explains the impact of low-cost Chinese imports on his business, the industry and the environment, and suggests a next step for the retreading industry. “The retreading industry in America is now in its fourth year of stagnation and decline in retread units — this will continue as long as the Chinese new tires continue to be dumped here at the prices they are. The whole retread industry is being hurt by the dumping of these cheap, low-cost tires into the U.S. “Many fleets are buying the disposable Chinese new tires at rock bottom prices and throwing them away when worn out. This is because many of the Chinese tire casings are of very low quality and uniformity and are unable to be retreaded successfully. The retread industry serves an important role in the American economy by re-using quality casings multiple times, thereby extending the life cycle of a casing for up to seven years. This not only reduces the cost per mile for fleets but also is environmentally sound, keeping millions of tires out of landfills and scrap piles (From left): Wonderland Tire President Jon Langerak is at his 36,000-squarefoot retread plant with Jason Cleveland, manager, and Steve Oudekerk, each year. “Currently 43% of our sales come from foreman. The plant produced about 40,000 AcuTread retreads in 2016. retread and casing sales. In 2012 it was 53% of our sales. We own and operate our own AcuTread brand retread plant and have been in the retread business since 1983. We have always educated our customers on the good economic and environmental sense of retreading. For our customers, retreading has been and remains a very important part of their tire programs, and one of the important factors in getting lowest cost-per-mile results. “We have certainly experienced erosion of retread sales as some customers opt for cheap, low-quality Chinese new tires. We always try to educate the customer but some are attracted to the cheap price of those tires. We sell very few Chinese new tires because of our commitment to retreading. We understand the good economic and environmental sense of buying a quality new tire and then utilizing that casing, once the original tread is worn out, multiple times for retreading. “I believe it is necessary that retread plant owners, retread licensing companies, and the Tire Retread & Repair Information Bureau join together and let our voices be heard by our Congressmen and government officials on this issue. There is no doubt in my mind that China is dumping their tire products into America, and I believe the evidence clearly bears this out. One clear indicator of this is that tariffs were implemented some time ago already on both passenger and light truck tires coming from China and many of these same companies are producing and dumping their truck and bus tires in America as well.”

MTD April 2017

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Top 50 retreaders service, according to Larry Faulkner, vice president of sales and marketing. “Some dealers in the Atlanta market adhere to a simple price-cutting strategy. This strategy is very disruptive to customers who need consistency in supply and timeliness of delivery,” he says. “Our strategy has always been that we do not want to be the biggest; we want to be the best. Service is our number one priority. This strategy has allowed us to recapture business that may have been lost in the past due to price-cutting. Instead of being known as ‘the cheapest in town,’ we prefer to

Quik-Link: 800-687-1557 ext. 14122

be considered as ‘the best servicing dealer in town.’ Based in Forest Park, Ga., Atlanta Commercial Tire is ranked No. 17. TravelCenters of America has operated truck stops for over 40 years. The company says its new TA Truck Service Commercial Tire Network will allow it to meet increased customer demand for flexible, efficient sourcing of commercial tires. The TA network has contracted with over 140 company-owned and independent retreading shops to offer Goodyear and Bandag truck tire retreads. TA’s goal is to be a powerhouse in the industry while being able to give business to others, according to Carr. “Instead of us launching 30 retread shops, we’re able to use the retread shops that are out there as our own sources and keep those retread shops up and running.” Carr says the use of existing shops will enable both TA and retreaders to succeed. “We have such a massive footprint for sell-out and a massive reach for fleet customers, we both can win that way. At the end of the day they are selling retread services to TA, and we’re selling the finished product for both of us. It keeps the circle of tire life flowing. Everybody prospers and no one gets hurt.” TA sells small and medium fleets the advantages that a major fleet would enjoy, from service programs to tire programs, according to Carr. The company’s sales strategy is to offer one price per category of tires. For example, the company sells a Cooper Roadmaster tire or Dayton tire in any size and for any position for $324. “We try to structure everything so the driver or the small fleet or customer in general has more of a choice in what they buy, and then we can set them up on a program.” Like Chamblee, Carr sees a greater emphasis on full-service capabilities in the tire business. “It’s becoming a solutions industry when it comes to tires, tire services and truck services. I think we’ll see more companies out there that offer full service — oil change, tires and fuel — taking more and more share of the business strictly because of the time savings and a volume purchasing savings for fleets and independents.” Carr says TA’s origins are a major advantage. “We were in the service business before we got in the commercial tire business, so it keeps us a little bit ahead on that front. We feel very good about the industry as a whole. We see drivers of all size fleets down to independent owners willing to do the things they need to do to upgrade their trucks, and that’s a good sign.” ■

MTD April 2017

Medium Truck

Industrial

Rubber Used (lbs. in millions)

Process

Total Points

4,600 0

27.8

Bandag (precure)

16,117

2 Goodyear Tire & Rubber Co., dba Goodyear Commercial Tire & Service Centers

Akron, Ohio

140 4,100 0

N/A

Goodyear (UniCircle, precure, mold cure)

14,588

3 Bridgestone Americas Tire Operations LLC, dba GCR Tires & Service*

Nashville, Tenn.

3,158 7

22.5

Bandag (precure)

11,416

4 Pompâ€™s Tire Service Inc.1*

Green Bay, Wis.

190 2,573 0

16.7

Bandag (precure)

9,329

5 Purcell Tire & Rubber Co.

Potosi, Mo.

128 863

12.6

Goodyear (UniCircle, precure, mold cure, Flex-cure), segmented mold cure, precision cut treads

8,804

6 Best-One Tire Group2

Monroe, Ind.

2,408 0

16.3

Bandag (precure)

8,428

7 Snider Tire Inc., dba Snider Fleet Solutions

Greensboro, N.C.

200 2,100 0

16.0

Michelin (Pre-Mold, Custom Mold, Oliver

7,690

8 McCarthy Tire Service Co. Inc.

Wilkes-Barre, Pa.

110 1,700 0

11.5

Bandag (precure, Continuum)

6,137

9 TCi Tire Centers LLC

Duncan, S.C.

1,600 0

12.5

Michelin (Pre-Mold, Custom Mold)

5,600

10 Tredroc Tire Services LLC3

Elk Grove Village, Ill.

1,320 0

7.8

Bandag (precure)

4,688

11 Les Schwab Tire Centers Inc.*

Bend, Ore.

1,000 10

8.0

Oliver (precure), Marangoni (RingTread precure), Galgo

3,960

12 Service Tire Truck Centers Inc.

Bethlehem, Pa.

1,100 0

8.2

Michelin (Pre-Mold, Custom Mold), Oliver

3,918

13 Bauer Built Inc., dba Bauer Built Tire

Durand, Wis.

1,000 0

6.7

Michelin (Pre-Mold)

3,517

14 Earl W. Colvard Inc., dba Boulevard Tire Center

Deland, Fla.

974

6.1

Bandag (precure)

3,409

15 Bob Sumerel Tire Co.

Erlanger, Ky.

910

5.2

Bandag (precure)

3,185

16 NRI Inc., dba Northwest Wholesale and Retreading

Portland, Ore.

110

N/A

Precure, mold cure

3,155

17 Atlanta Commercial Tire Inc.

Forest Park, Ga.

875

4.8

Bandag (precure)

3,097

18 New Pride Corp.

Rancho Dominguez, Calif.

810

3.7

Daeho (precure, mold cure), Vipal

2,835

19 Parkhouse Tire Inc.

Bell Gardens, Calif.

800

5.4

Bandag (precure)

2,834

20 B.R. Retreading Inc.

Glasgow, Ky.

3.5

Segmented radial molds, Marangoni (cut tread)

2,600

21 Custom Bandag Inc.*

Linden, N.J.

672

3.7

Bandag (precure)

2,515

OTR

Headquarters Columbia, Miss.

Company

1 Southern Tire Mart LLC

Rank

Shops

2017 MTD Top 50 Retreaders in the U.S.

121

MTD April 2017

Shops

Medium Truck

OTR

Industrial

Rubber Used (lbs. in millions)

Process

Total Points

Logan, Utah

679

4.7

Michelin (Pre-Mold)

2,390

23 H&H Industries Inc.

Oak Hill, Ohio

4.5

Mold cure, sculpture, precure

2,300

24 McGriff Treading Co. Inc.

Cullman, Ala.

645

3.6

Bandag (precure)

2,292

25 Continental Tire the Americas LLC, dba BestDrive LLC

Fort Mill, S.C.

600

3.5

ContiLifeCycle

2,100

26 Ziegler Tire & Supply Co.

Massillon, Ohio

575

4.5

Michelin (Pre-Mold, Custom Mold)

2,013

27 T & W Tire and Retread Inc.

Oklahoma City, Okla.

550

4.0

Michelin (Pre-Mold, Custom Mold)

1,925

28 Valley Tire Co. Inc.*

Charleroi, Pa.

528

3.3

Michelin (Pre-Mold)

1,916

29 New Holland Tire Inc.*

Terre Hill, Pa.

480

2.7

Daeho/Elgi (precure)

1,781

30 Sullivan Tire Co. Inc.

Norwell, Mass.

475

3.3

Bandag (precure)

1,714

31 Community Tire Co.

St. Louis, Mo.

120 30

2.5

Mold cure, segmented mold cure

1,689

32 Royal Tire Inc.

St. Cloud, Minn.

420

2.6

Bandag (precure, Continuum)

1,673

33 Parrish Tire Co.

WinstonSalem, N.C.

450

2.7

Bandag (precure)

1,660

34 RDH Tire and Retread Co.

Cleveland, N.C.

4.5

Computerized strip and tread grooving, Marangoni

1,610

35 Redburn Tire Co.*

Phoenix, Ariz.

423

2.4

Bandag (precure)

1,530

36 Pete’s Tire Barns Inc.

Orange, Mass. 2

350

2.3

Bandag (precure)

1,351

37 Raben Tire Co. LLC*

Evansville, Ind.

365

1.9

Oliver (Pre-Mold), Goodyear (UniCircle)

1,276

38 Dillon Tire Inc., dba Cross Dillon Tire*

Lincoln, Neb.

334

2.3

Bandag (precure, Continuum)

1,261

39 White’s Tire Service Inc.*

Wilson, N.C.

270

2.5

Marangoni (Unitread), Vipal, ContiLifeCycle

1,180

40 Gem City Tire Inc.

Dayton, Ohio

320

2.0

Goodyear (precure, UniCircle)

1,178

41 Bergey’s Retread Technologies Inc.

Franconia, Pa.

325

2.3

Marangoni (RingTread precure), Continental ContiLifeCycle

1,139

42 Colony Tire Corp.

Edenton, N.C.

325

2.0

Michelin (Pre-Mold)

1,138

43 Craft Tire Inc., dba Shrader Retreading

Uniontown, Pa.

1.7

Marangoni (Mammoth) and Chima computer cut tread

1,104

44 Commercial Tire Inc.

Meridian, Idaho

290

1.8

Bandag (precure)

1,078

45 Superior Tire Service Inc.

Salem, Ore.

260

3.3

Michelin (Pre-Mold), Oliver (Pre-Mold)

1,065

46 Eastern Iowa Tire Inc.

Davenport, Iowa

290

2.1

Bandag (precure)

1,015

Company

22 Jack’s Tire and Oil Management Co. Inc.

Rank

Headquarters

2017 MTD Top 50 Retreaders in the U.S.

www.moderntiredealer.com

Medium Truck

OTR

Industrial

Rubber Used (lbs. in millions)

Process

Total Points

273

2.4

Goodyear (UniCircle, precure)

1,005

48 Dorsey Tire Co. Inc.

Pooler, Ga.

285

1.1

Bandag

998

49 MTI Retreading Co. Inc.

Grand Rapids, 1 Mich.

270

1.3

Michelin (Pre-Mold)

996

50 Callaghan Tire Inc.

Bradenton, Fla.

260

1.4 1.8

Bandag (precure)

944

Headquarters Santa Fe Springs, Calif.

Company

47 Daniels Tire Service Inc.

Rank

Shops

2017 MTD Top 50 Retreaders in the U.S.

Footnotes: * — estimated; N/A — not available 1. Figures for Pomp’s Tire Service Inc. reflect the number of retread plants (three) added when the company acquired Cross-Midwest Tire Co. on Dec. 1, 2016; estimated production figures include the three Cross-Midwest plants. 2. Best One Tire Group’s figures include the Becker Tire and Treading Inc. plant acquired in Feb. 2017. 3. All commercial locations using the Belle Tire, Belleroc, and Tredroc names rebranded under the Tredroc Tire Services name at the end of 2016. Tredroc Tire Services LLC is a joint venture company owned by Belle Tire Distributors Inc. and Tredroc Tire Services Inc.

Here’s how the points are calculated: Each April, Modern Tire Dealer ranks the“Top 100 Retreaders in the U.S.” based on the average amount of tread rubber used to retread different types of tires. Twelve pounds of rubber, on average, are used to produce one light truck tire retread, while 24 pounds are used to produce one medium/heavy truck tire retread. An average of 324 pounds are used to build one OTR tire retread. MTD awards one point for every seven pounds of rubber used per retread. Each light truck tire retread equals 1.7 points, each truck tire retread equals 3.5 points, and each OTR retread equals 46 points. The point total does not include industrial tires. Numbers are rounded to the nearest point. See all Top 100 Retreaders at www.moderntiredealer.com.

Quik-Link: 800-687-1557 ext. 14124

MTD April 2017

Heavy-duty tire changers

The latest heavy-duty tire changers are designed for wide-base tires By Ann Neal

t was an injury to an employee that pushed Matt Benton to buy a heavyduty tire changer. His technician was changing tires “the old-fashioned way with a hammer and a bar,” says Benton. The bar slipped, and the tech fell forward, breaking his arm. “You never want one of your people to get hurt. It really was a deciding factor,” says Benton, who bought his tire changer from Hunter Engineering Co. Benton’s shop services the 20 trucks operated by his company, W.I.T. Transportation LLC in Odessa, Texas. He calls the purchase “one of the better decisions I’ve made for my business.” For Benton, the machine is a safer way to change a medium truck tire. “If I’ve got a guy out there slinging a sledge hammer and he misses and damages the wheel but Hunter says the TCX625 heavy-duty tire changer’s pedal-controlled inner worse than that he hits his foot or his shin, roller saves the operator time and effort to bring service times that are now I have a workers’ compensation claim comparable to manual methods, but are much safer. The machine combines and I’m down an employee. The tire changer a compact size with a unique mount/demount roller mechanism. takes that whole factor away.” In addition, Benton has found a tech’s productivity using an agricultural tire, or an implement tire like a road grader, the tire changer to be comparable to a hammer and bar. But depending on the size.” But it is difficult for technicians to the machine requires far less physical exertion for the tech. change wide-base tires with a bar and hammer. “Another thing you have to factor is how hard is my guy Don Vanderheyden, director of marketing for Hennessy working versus how hard is that guy working. My guy is not Industries Inc., says that when changing on the ground, a lifting the tire and wheel; it’s all done hydraulically, so the risk technician must lift the second bead of the tire over the wheel. versus the reward factor with the tire changer is a lot better.” “In doing this the tech is fighting gravity, plus lifting the entire Techs can become proficient on the tire changer in a single weight of the tire over the wheel. This becomes more difficult day. “When you’re using a hammer and bar system there’s a with wide-based applications that are becoming more common.” lot of skill that you don’t get any other way than by doing it. Lower costs are behind the switch from dually to super single This machine reduces that learning curve way down. A tech tires, according to Vanderheyden. “The cost of ownership and can watch a guy do it two or three times, and he can be doing fuel are lower for one wide tire and wheel than two narrow tires it the same day without any problem,” says Benton. and wheels. In addition, one wide tire and wheel is cheaper to buy than two standard tires and wheels. The trend is to Ideal for wide-base applications more super singles, and when you go to more super singles Despite the availability of heavy-duty tire changers, techni- you need these types of machines.” cians in many commercial shops are changing tires by hand. Liebetreu says wide-base tires are the “prime driver” for “Tire changers for heavy-duty have been around for a long increased use of heavy-duty tire changing equipment, especially time, but they were very generalized,” says Pete Liebetreu, for equipment that speeds the process. “The wide-base tire is senior product manager at Hunter. just so heavy and unwieldy to do with bars that it really becomes “They were designed so you could change an over-the- a lot more work and time compared to steer tires. Also, the road truck tire with them, but you could also change maybe concern for workplace fatigue, liability and safety goes up.”

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Heavy-duty tire changers changer. That’s where the clamp protection comes in to limit metal-to-metal contact and prevent wheel damage.”

Shops are more profitable

Hennessy says the Coats CHD-6330 heavy-duty tire changer is the most compact of the jaw-style clamping machines. Features include a four-jaw chuck for fast and easy clamping of virtually all rim styles and a portable control station that allows techs to work from the best angle.

He says a technician can change a steer tire faster manually than using Hunter’s machine. “To be honest, we can’t beat him on the steer tire. The guy with the bars is still a little faster with that traditional tire, but with the wide-base we certainly outpace him. And we do it without anybody having to lift anything. We do it in a safe way.” There is a high risk of back injury when changing tire assemblies on the ground, according to Vanderheyden. “Using a heavy-duty tire machine, you reduce operator effort and technicians have more control. This reduces the risk of injury when servicing a heavy-duty tire assembly.” Liebetreu notes that a shop servicing over-the-road truck tires in many cases isn’t dealing with implement or agricultural tires, or is addressing them in a different way. “There’s a true benefit that can be had to our customers for having a very fast and efficient piece of equipment that’s focused on the tire volume challenge in over-the-road truck tires. The volume doesn’t exist in implement or agricultural tires to make sense to be super specialized in that area. But boy, there are a lot of truck tires being changed every day.”

Machines boost efficiency and protect alloy wheels Higher tire volumes are prompting more shops to commit to heavy-duty machines, according to Vanderheyden. “We’re seeing more people being willing to spend the money and make the investment to buy the equipment. That’s the battle in the heavy-duty market. Everybody says these are great machines, but the battle happens at the shop level because the machines are expensive. People will say if I don’t have a lot of volume I’ll just pound it out. But as they start to get their volumes up, they start to realize they could do it a lot more efficiently with the machine.” Liebetreu says alloy wheels also are driving increased interest in heavy-duty tire changers. “Anything that’s going to get near the wheel is going to be plastic. If you do it in a controlled way with non-scratch materials, then you’re not going to damage those very expensive aluminum wheels.” There still are plenty of steel wheels in the market, according to Vanderheyden, but the increase in alloy-style wheels makes machines that only have steel capability not as useful anymore. “Now that we have alloy wheels in the heavy-duty world, that means we have to protect the wheels on the tire

Mechanized tire changing makes a shop more efficient and safer. Says Liebetreu, “If you can do a tire and wheel faster and easier, assuming you charge the same amount for the service, you have a more profitable operation.” Tire changing equipment also can help contain workplace safety costs. “Any kind of liability, any kind of workers’ compensation, even the amount of time employees call in sick or don’t make it in on time because they’re worn out, affects your profitability as well.” Nick McCullough, president of Rav America, the North American division of Ravaglioli SpA, points out that the risk of on-the-job accidents and workers’ compensation claims are reduced when processes are no longer dependent strictly on manual labor. “The average cost of a claim is now approaching $100,000 when all cost factors are included. The cost of a leading truck tire changer is less than $20,000, and it will perform tens of thousands of cycles for years to come.” Other benefits are improved employee recruitment and retention, according to McCullough. “The labor pool of individuals willing to do the hard physical labor required by manual tire changing is pretty much exhausted. Retaining these employees will be more difficult in the future.” McCullough says Rav’s GTB-16N machine is similar to operating a video game with joystick controls. Rav America says the GTB-16N machine is specifically designed for medium-duty, light truck, super-duty, and widebase tubeless tires. It is used in mounted wheel programs and is capable of the high cycle counts and rigorous demands of high-volume applications.

“The current generation grew up playing video games, and it will be much easier to find these kinds of tire techs than it will be to find people who are willing to swing a tire hammer day in and day out.” In addition, skill, experience and strength are not prerequisites for mechanized tire changing. Shops do not have to plan for a lengthy training program either. “It is a long process to teach a person to become highly proficient in manual tire changing. Mechanized tire changing can be learned in one day,” says McCullough. He cites other advantages heavy-duty tire changers bring to a shop: faster cycle times overall, more efficient practices, less employee absence due to fatigue or injury, and less bead damage due to incorrect mounting/demounting practices. More efficient use of floor space is another plus. “These tire machines require 50 square feet of floor space where to manually change even one set of drive tires requires 150 square feet of valuable floor space.” ■

MTD April 2017

OTR tires

‘Take your customers out of the tire business’ Tips for cementing your relationship with OTR customers By Lori L. Mavrigian

uring the Tire Industry Association’s (TIA) Offthe-Road Tire Conference held in Oahu, Hawaii, in February, Ron Tatlock, manager of training and engineering for BKT USA Inc., said a dealer can best serve his customers by first helping them make the proper tire selection. This includes the correct tire type with the best load capacity, the best tread depth for the job, and the best construction and compound. OTR tire dealers also need to perform examinations of their customers’ scrap tires and school them on the importance of correct inflation pressure. Under- or over-loading creates excessive stress and heat that can lead to tire failure, plus it compromises vehicle handling and makes the tires more susceptible to road hazard damage, he said. “A tire that is 20% or more under-inflated is ‘severely under-inflated’ and must be demounted and carefully examined before re-inflating. A dangerous zipper brake is possible,” said Tatlock. “Underinflation of only 10% can cause up to a 20% loss in tire life.” Tatlock said dealers must perform regular fleet inspections for their customers, which allows for: • early detection and resolution of problems, • extending tire life by maintaining proper inflation pressure and performing properly timed repairs for maximum tire life, • anticipating tire replacements for inventory control, • reducing expensive downtime due to tire problems, and • maximizing tire-related safety. “You’re not going to sell more tires to the customer if they don’t last as long as the competitors’,” Tatlock said. “Take them out of the tire business. Customers will be less hesitant to pay you if they recognize the value you’re giving them.”

Manufacturer panel TIA also presented an off-the-road tire manufacturer panel discussion featuring Michael Aguon, associate vice president, OE, technical and national accounts, BKT USA Inc.; Bridget Neal, director, OTR sales, Bridgestone Americas Inc.; Shawn Rasey, director global business development — earthmover tires, Continental Tire the Americas LLC; and Rob Miller, OTR sales zone manager, Yokohama Tire Corp. When asked what the biggest challenge was for mining customers and mining tires, the experts said: Neal: Reduced inventory. Many OTR tire customers took tires off idle equipment, and they may be down to one to one-and-a-half months of inventory versus their normal four- to five-month inventory. We encourage our dealers to stay in close communication with their mining customers to avoid shortages.

www.moderntiredealer.com

Ron Tatlock, manager of training and engineering for BKT USA Inc., said dealers need to add value to their products by performing regular fleet inspections.

Miller: Uncertainty in the mining segment. If business does continue to grow, the companies that had taken tires off parked vehicles will now need tires to put equipment to work. Rasey: Emerging technologies. OTR tire customers are wrestling with the new technology it takes to be more cost effective, safe and get the most from their tires. Aguon: BKT’s biggest challenge is OTR customers don’t know them. In the ag market, they’re well established. Now BKT needs to promote its brand name in the OTR market.

OTR retreader panel An OTR retreader panel consisted of Patrick Culiberk, operations manager for Community Tire Retreading; Noah Hickman, president of H&H Industries Inc.; Bert Jameus, retread plant manager, Kal Tire; Brian Hayes, director of manufacturing, Purcell Tire & Rubber Co.; and James John, vice president, Schrader Retreading, a division of Craft Tire Inc. When asked for their production forecast for the upcoming year, the panelists said they were optimistic due to price increases on new OTR tires. Said Hayes, “There is a tremendous amount of optimism going forward. Increased prices on new tires have given us breathing room. A theme we’ve heard in the industry is ‘We can’t afford to retread because new tire prices are so cheap.’ For OTR retreading, that is changing.” Jameus added, “We expect to see a 5% to 7% increase. We’ll be focusing on the 25-inch tire segment, the biggest part of our business, which is looking pretty good.” Jameus also stressed the need for retreaders to offer a tire with a like-new appearance. Clean 25-inch casings are most in demand, the retreaders said. Hickman noted, “Good quality casings are getting harder to find. Many customers are running tires to destruction.” He added, “Anything larger than 25 inches, say 33, 35 and 49 inches, people understand the value of the casing.” ■

Commercially viable New Bosch HPT 500 finds leaks in heavyduty vehicles

Big tread blocks and solid construction define Galaxy Hulk SDS

The new HPT 500 High-Pressure Diagnostic Leak Tester from Bosch offers leak detection for heavyduty vehicles and turbocharged passenger cars. The HPT 500 produces a larger volume of smoke necessary for the larger systems in HD vehicles. The machine delivers leak detection smoke at up to 30 psi, higher pressures than standard machines, and simulates truck boost to safely test with the engine off. HPT 500 was designed with durable construction for technicians and fleet owners. It’s capable of testing an entire system in 15 minutes, and offers dual operating modes so technicians can alternate between smoke-only and air-only cycles to confirm repairs. BOSCH AUTOMOTIVE SERVICE SOLUTIONS Quik-Link: (800) 687-1557, ext. 14160 www.mtdquiklink.com/14160

Alliance has introduced a severeduty solid (SDS) skid steer tire, the Galaxy Hulk Deep-Tread SDS. The company says the tire’s massive block tread pattern and solid construction are designed for the toughest challenges in material handling, construction and farming. The chevron-and-block pattern of the Hulk SDS tread provides excellent self-cleaning while delivering long service life on all surfaces with its high 68%-rubber-to-void ratio. The Galaxy Hulk SDS has been introduced in two sizes — 30x10-16 and 33x12-16 — with and without apertures. ALLIANCE TIRE GROUP Quik-Link: (800) 687-1557, ext. 14163 www.mtdquiklink.com/14163

Arisun drive tire from ZC Rubber is SmartWay-verified The Arisun AD759 is a drive position tire for long haul applications. The tire has a solid close shoulder, 30/32nd tread depth and three deep grooves to improve even wear and evacuate water efficiently for traction. Its strong casing is designed to resist cuts and punctures for enhanced toughness and long casing life. Its low rolling resistance compound improves fuel economy, the company says. Available in the sizes 11R22.5, 295/75R22.5, 11R24.5 and 285/75R24.5, the Arisun AD759 is designed for those with high-mileage demands. ZC RUBBER GROUP CO. LTD. Quik-Link: (800) 687-1557, ext. 14161 www.mtdquiklink.com/14161

New size in TM3000 from Trelleborg handles big loads with less air pressure The TM3000 from Trelleborg is available in a new size for spreader applications. The VF1050/50R32 tire incorporates Trelleborg BlueTire technology to help protect the environment, and provides increased productivity and lowers overall operating costs. It offers the benefits of the VF construction and a D-rated load index (65 Km/h; 40 mph), which the company says allows the machine to carry up to 40% more load at the same pressure, or the same load with up to 40% less pressure. This means that the tire can carry up to 13,200 kg (29,100 lbs.) at 3.6 bar (or 52 psi). TRELLEBORG WHEEL SYSTEMS Quik-Link: (800) 687-1557, ext. 14162 www.mtdquiklink.com/14162

Michelin Power Digger is for excavators Michelin’s Power Digger is a bias tire made for wheeled excavators with a dual fitment for both original equipment and replacement applications. Designed for construction applications, the 10.00-20 Power Digger tire offers bias construction, thicker sidewalls and a directional-lug design for excellent stability. Michelin says the tire is structurally designed to allow for more stability in the contact patch area as the machine carries out 360-degree movements on varied surfaces. The sidewalls are thicker to better resist impacts. The pronounced center arch of the tire contains more rubber to provide excellent wear. The tire also has a higher-load index of 147, which is superior to competitive tires. MICHELIN NORTH AMERICA INC. Quik-Link: (800) 687-1557, ext. 14164 www.mtdquiklink.com/14164

Toyo adds sizes to M920 drive tire Toyo has expanded the size offerings for its M920 drive tire, designed for trucks that require all-season capabilities to deliver loads in any weather condition in regional or long-haul applications. The M920 has wide, staggered tread blocks for improved traction and performance while additional features assist in excellent wet performance, longer tire life and reduced irregular wear. Its two wide circumferential grooves are designed to shed water during wet conditions. The lineup features eight sizes, including three new offerings: a 315/80R22.5 with a load index of L, also an 11R24.5 and a 285/75R24.5. TOYO TIRE U.S.A. CORP. Quik-Link: (800) 687-1557, ext. 14165 www.mtdquiklink.com/14165

MTD April 2017

Quik-Link: 800-687-1557 ext. 14125

Counter intelligence

The sales counter moved again And the sales floor is now on the smartphone

he sales counter just moved. Well, it it leads to further erosion of customer count, tire didn’t “just-move,” it’s been moving. In sales and revenue. my early days of selling tires at retail, it I remember when the clubs arrived and took all happened in a small area at the store known some market share. I remember when car dealers as the sales floor. Consumers called or visited the started getting serious about replacement tires. store where the initial details of a potential sale I remember when tire manufacturers started were discussed. Today, the initial discussion is attempting to sell tires directly. I’ll state the digital. The salesperson at the store had a great obvious, tire sales drive service sales, and the deal of control because the product and pricing erosion of tire sales has a real impact on top-line information resided with the salesperson at the By Wayne Williams sales and bottom-line profits. Every dollar matters. store. Today, there’s plenty of product and pricReasons that erosion matters? I have a membering information available to the consumer before they ship with Costco; they do it right. Like millions of other call or visit. members, I’ve drunk the Kool-Aid. Every time I go in and In the beginning, the best tire knowledge resided with out of the store, I walk past the customer service return the salesperson at the store; in other words, the best solu- counter. Costco processes returns at record speeds and in tions were in person at a place. Then the internet inserted high volume, making their customers happy. itself into the process. Currently when most tire shoppers I buy my gas at Costco, top tier gas at the best prices in call or visit tire stores, they have done a certain amount of town, period. They have a sign at the gas island reminding online research. Arguably, however, still today the best sales me to get a free air pressure check at the tire department. solution for purchasing tires is the local, knowledgeable When I arrive at the tire department, someone greets me salesperson at the store. and quickly adjusts my tire pressure without complaining. That being said, I drive away happy. Permit me to make a prediction, don’t consumers are now expect to see a stream of Costco’s customers returning to buying everything your store complaining about Costco’s service or prices. from toilet paper to When you add up the erosion of tire unit sales from car mattresses to cars dealers, clubs, online retailers and others, it’s going to be online. I ask myself, tough to take another hit. “Who would buy a Tire dealers had no choice in the expansion of clubs, mattress online and car dealers, etc. However, you do have control over your have it delivered to website and digital relevancy. Consumers want to buy their door?” Worse online. They want to get real answers and real value. They than that, “ W ho want to be in control. They want transparency. would buy a car The shift to online sales technology is taking place at an without sitting in it or driving it first?” Well, the good old incredible pace. The sales floor is now on the smartphone. days and the good old ways are gone, replaced with new Granted, the call or visit to the store is still real and a vital ways and new processes. part of the process, but the front-end of the sales process Online car sales are “currently” only taking place in a is changing rapidly. limited number of dealerships. “Currently” only the very As we continue to explore shifts and threats in the marlargest tire retailers and manufacturers are selling online. ketplace, it’s important to realize the need for flexibility and However, this trend is going to grow, and independent tire change in established paradigms. As consumers continue dealers who cannot engage due to costs of development to purchase more and more items online, such as tires, if we and participation will feel the threat to tire unit sales. as independent dealers don’t have an e-commerce option, You can bet that major tire retailers and online retailers then the best we can hope for is to capture some portion are working hard to enhance the complete online sales of the sale/service segment, becoming an “installation solution. When I stop to think about it, it blows me away destination.” to think consumers feel they now have a valid and relevant We’ll discuss more specifics next month. Remember solution to purchasing tires online without visiting a tire this, the fastest growing language in the marketplace is store or speaking to salespeople. the digital language. Speak it or die! ■ The person and the place are being radically affected by advances in online sales technology. It’s not that this Wayne Williams is president of ExSell Marketing Inc., a hasn’t been predicted or that we haven’t seen it coming, “counter intelligence” firm based in La Habra, Calif. He can it’s that it’s unfolding. If tire dealers are not prepared, then be reached at exsellmkting@gmail.com.

MTD April 2017

Quik-Link: 800-687-1557 ext. 14126

European notebook

Innovative tires and more Manufacturers speak out at the Geneva Motor Show

he annual Geneva Motor Show in which is embedded in the tire and connected to Switzerland is primarily a high profile the Pirelli Cloud as well as a smartphone app, car show presenting the very latest ensures drivers can constantly communicate automotive technical advancements. It is also with their tires. Another important asset of the increasingly becoming a popular event in terms system is it measures tire pressure, temperature of tomorrow’s tire innovations, and once again (even when a car is stationary), static vertical most of Europe’s leading tire manufacturers were load, tire wear and mileage. exhibiting this year. Pirelli, Goodyear Dunlop, Yokohama, BridgesGoodyear Dunlop: 3 concept tires tone Europe and Apollo Vredestein all once again By John Stone As in previous shows Goodyear Dunlop was presented high profile booths, while Falken was also showcasing its very latest technological making its debut at the show. I was able to chat at length advancements, including three new concept tires — the with all six producers about their different approaches and Eagle 360 Urban, IntelliGrip Urban and Goodyear City new technological advancements. Cube; the latter has been specifically designed for the all-new Toyota i-TRIL concept car. Color me Pirelli The Eagle 360 Urban is the first concept tire to be As the chosen tire supplier powered by artificial intelligence (AI), making it able to at the Formula 1 Global Rac- sense, decide, transform and interact. With a combined ing Championship, the Milan bionic skin and morphing tread, the Eagle 360 Urban has headquarters of Pirelli was the unique ability to put this knowledge into practice, with launching two new impres- the tire becoming part of a vehicle’s “nervous system” that sive innovations — a colored rapidly adapts to changing circumstances when driving. edition of its P Zero and Winter The Goodyear IntelliGrip Urban has been specially Sottozero tire ranges as well as designed for future generation autonomous electric ridethe Pirelli Connesso Platform sharing vehicles in urban areas and incorporates advanced System. Sensor-in-Tire technology to support autonomous vehicle The special colored editions control systems and enhance passenger safety. The IntelliGrip are, according to Pirelli, being Urban senses road and weather conditions and transmits introduced to address the grow- the information directly to the vehicle’s computer system ing demand for personaliza- in order to optimize speed, braking, handling and stability. tion from their prestige and The Goodyear premium customers, including CityCube combines distributors. advanced sensor techThere are, in fact, two new nology with a unique advancements being launched tread design to identify with the colored tires. The a variety of road condiThe Pirelli Connesso digital platvariety of colors available and tions. It sends the data form system uses a sensor to prothe stability of the sidewall to the vehicle to support vides data about the status, use colors are courtesy of ground- an advanced collision and maintenance of every tire. breaking, exclusive technology prevention system. that is evolved from the Formula One circuits. Also, a new material has been created to act as a protec- Falken Ecorun A-A tive barrier that maintains the brilliance of the color and I also visited newavoids fading without affecting performance. In due comer Falken Tyre course, the respective colored editions of the P Zero and Europe’s (based in Goodyear talked about its latest advancements, Winter Sottozero will become available around the world Germany) booth to technological including the 3 concept tires. for premium car models. inspect its new summer The Pirelli Connesso digital platform uses a special sensor tire: the Ecorun A-A. The result of the tire’s fuel saving that is integrated within Pirelli’s high-end tire ranges to design features and impressive braking distance levels in specifically expand on the information already available wet conditions is a European Union tire labelling rating from a car’s on-board computer, and it provides data about of AA, with one “A” standing for top fuel efficiency and the status, use and maintenance of every tire. The sensor, the other for superior wet grip.

MTD April 2017

Quik-Link: 800-687-1557 ext. 14127

European notebook

Falken said the Ecorun A-A tire is produced from ultra-refined natural “pure rubber,” and incorporates Falken’s advanced 4D Nano Design into the tire compound, giving it exceptional performance in fuel efficiency, wet grip and mileage. The compound also cuts heat build-up and rolling resistance to significantly extend tire life. The product is particularly recommended for hybrid vehicles, and Falken has an exclusive partnership with Toyota for the replacement market. Falken was also promoting the racing side of its business, and announced it will be lining up with two racing cars from premium German teams this season — Porsche and BMW.

crossover, SUV and minivan markets. It has an EU tire label rating of “A” in wet grip performance and “C” for rolling resistance. The tire’s performance characteristics give drivers of crossovers and SUVs a greater sense of stability on rainy days. Also the BluEarth Winter 905 pattern for cars and SUVs will be released for sale toward the end of this year in time for the forthcoming winter season in Europe. For the harsher winter months in Northern Europe, the new iceGuard iG65 studded tire for passenger cars has been specially manufactured to provide a studded tread that delivers the ultimate performance on challenging icy surfaces. An increased number of studs in the tread plus a new stud-hole allocation that places the studs at the center of the tire increase overall driving performance on snowy, wet and even hard, dry surfaces. Yokohama also added a touch of nostalgia to the show with the return of its popular A008P tire, a landmark pattern for the company. It will be available in two special sizes – 205/55ZR16 91W for front tires and 245/45ZR16 94W for rear tires. The original A008P was launched in 1989, and a prototype of the new tire was on display fitted to a classic Porsche 911 930 Turbo Cabriolet saloon. Finally, Yokohama’s revealed it has an historic 100th anniversary micro-site that highlights the different milestones in the company’s history and product range. The micro-site presents two distinctive timelines: a corporate history program and a product history version.

Happy birthday, Yokohama

No new products, but...

Yokohama Europe was using this year’s show to primarily celebrate 100 years since the brand was formed in Japan by launching four tire patterns: BluEarth-Es ES32, BluEarth RV-02, BluEarth Winter V905 and the iceGuard iG65. In addition, the company re-introduced its popular Yokohama A008P pattern. The BluEarth ES32 is a new fuel-efficient global standard tire that will be launched worldwide in a total of 73 size options in 17- and 18-inch rim diameters. The tire not only offers a quartet of benefits — wet grip, wear resistance, durability and fuel efficiency — but also features a unique tread pattern with a wide, square and powerful profile for stable driving performance and safe handling. Also Yokohama’s Nano Blend compound includes orange oil for an optimal balance of high fuel efficiency, superior wet grip and wear resistance. The BluEarth RV-02 will initially target the European

I was also informed by Bridgestone Europe that at this year’s event, the company was not introducing any products, instead concentrating on officially activating its Olympic Games Partnership within the EMEA region that will run through to 2024. Paolo Ferrari, Bridgestone EMEA’s CEO and president, and Christophe Dubi, the International Olympic Games Committee’s executive director, jointly made a presentation to confirm the sponsorship would be Bridgestone’s main marketing promotion for the next seven years. Netherlands-based Apollo Vredestein also was not launching any new products at the show. Managing Director Neeraj Kanwar informed me the company was using this year’s event to further establish its growing presence in Europe as part of an international corporate growth plan for the immediate future. “There is no doubt that for the future, North America will become another important market for Apollo Vredestein as we move even further in our plan for truly global coverage in due course,” he said. It was obvious talking with the six tire manufacturers that all their imminent projects and expectations include the North American market, and in a way, this show was like “a voyage into the future” in terms of tire innovation. Also it is very clear there is a definite increase in the cooperation between car and tire manufacturers toward a point where tires will “talk” to a vehicle and driver... eventually. ■

Falken Tyre Europe exhibited for the first time at the Geneva Motor Show in Switzerland.

Yokohama Europe celebrated its 100th birthday with four new tires and the return of the A008P.

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

MTD April 2017

Focus on dealers

Unifying the Tire Pros experience Tools and training will help bolster business for all By Joy Kopcha

he nation’s largest network of independent tire dealers increased overall passenger and light truck tire unit sales in 2016 by 7.8% and same-store sales by 5.5%. With a net gain of 44 new Tire Pros stores last year, Ron Sinclair reminded dealers, “We have power!” Sinclair, chief marketing officer for Tire Pros and its parent company, American Tire Distributors Inc. (ATD), is now the leader of the retail franchise network following the 2016 retirement of Dan Ron Sinclair sees more room for growth in the Tire Pros network. “I feel very Brown. And during the annual Tire Pros confident over the next five years we can build to 1,000 dealers.” National Dealer Business Conference, Sinclair offered what became an oftenrepeated refrain to members: Tire Pros dealers need to recognize their combined strength in the market, and work to offer a unified brand experience for consumers. Perry Leonard is the new chairman of the Tire Pros National Dealer Council, and he owns nine stores in the Dallas area. He said dealers need to be engaged. “ATD, Tire Pros and the dealers — we’re Hosting the Tire Pros conference in New Orleans during Mardi Gras inspired all in it as one.” plenty of fun for dealers, including, from left, Richard and Connie Barnes, from Tire Pros is rolling out more opportuni- Barnes Tire & Service Centers Tire Pros in Jasper, Tenn.; Ted Jorgensen and ties for dealers to get involved in 2017. Jazzy Kellogg from Dixon Tire Pros in Dixon, Calif.; and Joseph and Danielle The group typically has named dealers Phillips from Coyote Tire & Auto in Glendale, Ariz. to its National Dealer Council, and that group has considered the value of a consistent phone greeting, and now has to add initiatives for the entire network. The national council will Tire Pros to it,” Bittner said. “There’s a bit of discipline that remain in place, but Tire Pros is adding four more dealer needs to be applied to that, but when you look at the way councils that will focus on these specific topics: customer forward and our list of the must haves, it doesn’t get any more experience, marketing, training and technology. fundamental than the telephone.” Each of those groups is made up of eight dealers, along with Asked about the potential for push back from dealers on representation from the Tire Pros leadership team. Ultimately, these strategies and fears that these steps might chip away those councils will offer best practices and ideas for the entire at a dealer’s independence, Sinclair said he thinks dealers Tire Pros network. recognize they reap benefits from the larger Tire Pros brand. Sinclair said he believes Tire Pros dealers are “unified in “These are all independent entrepreneurs. We’re trying to spirit,” but that consumers would report different kinds of build a better business, draw more consumers in, and ultimately experiences if comparing one store to another. These councils have those strong business results.” will help develop practices to unite dealers. One of the first things Tire Pros will implement is a uniform Measuring performance telephone greeting, where dealers will be sure to mention Tire Stuart Schuette, CEO and president of ATD, said the comPros when answering a call. pany sees an opportunity to use data to help Tire Pros dealers Bob Bittner is director of store operations for all 748 Tire Pros perform better in their markets. By the late fourth quarter of stores in the U.S. He told Modern Tire Dealer that because Tire this year Tire Pros will roll out a net promoter score (NPS) Pros has invested to market its name nationally, it makes sense system which will help dealers measure their performance. to help consumers make that connection on the telephone. Dealers responded with applause when Schuette told them “I think there’s a bit of a learning curve for a dealer who’s the expense of the NPS initiative would be covered by ATD been a successful independent for a long time and has learned and Tire Pros.

www.moderntiredealer.com

Focus on dealers Ultimately, the NPS boils down to one question a dealer will ask his or her customers: How likely are you to recommend Tire Pros to a friend or colleague? Consumers will answer the question using a 0-10 scale, with zero representing “not at all likely” and a 10 being “extremely likely” to recommend. Sinclair said the answer will help dealers’ business four ways: • It will objectively measure the customer experience. • It will alert a dealer to issues that need attention. • It will highlight opportunities to retain customers. • It will build value in the Tire Pros brand.

Online sales National marketing efforts are driving consumers to the www.TirePros.com website, and this year consumers will have the option of selecting a “buy now” button. The button is an affiliate link to ATD’s TireBuyer platform, and consumers will be prompted to select a dealer for installation. They won’t be offered a “ship-to-home” option, and dealers will get credit for each sale. Sinclair told MTD, “We want to drive that consumer to the Tire Pros dealer’s location to set the appointment. But we all know there are a certain number of consumers who really want to purchase now, buy now and close the transaction. We believe it’s important to have that functionality on the site. We’re trying to capture that consumer who wants to buy now, who if we didn’t offer that functionality, would probably go somewhere else to buy.”

Quick Chadwick, director of marketing for Tire Pros, likened the “buy now” button to an opportunity for the group to “dip its toe in the water” of online selling. “Our brand positioning is about providing a simple, straightforward and hassle-free experience. In order to fulfill that, we probably need to have an opportunity for those who want to buy online,” Chadwick said. “Providing a hassle-free experience means in-store and online.”

Marketing milestones Tire Pros dealers routinely cite the group’s marketing efforts as a key influence to join the national network. Chadwick oversees a staff of 36, and in 2016 Tire Pros dealers capitalized on everything from regional advertising efforts to branded credit card sales. Nationally, dealers counted $21 million in sales on the Tire Pros credit card. Chadwick said 390 tire dealers participated in 22 group advertising campaigns. “If you’re not in a group, get in one.” And during a six-month campaign, dealers raised more than $125,000 for a new Allies for Independence effort which provides wheelchairs to injured veterans. Three dealers accounted for about half of the money raised. Tire World Auto Repair Tire Pros, with six locations in Colorado Springs, raised $45,745 for the cause. Three Bud’s Tire Pros locations in California raised $10,002 and Rite-Way Auto Service Tire Pros in Excelsior Springs, Mo., collected $7,850. Tire Pros will plan two eight-week campaigns to support the veterans effort in 2017. ■

Quik-Link: 800-687-1557 ext. 14128

MTD April 2017

Focus on industry

The newest BFGoodrich tire is designed for Canadian winters By Ann Neal

he new BFGoodrich Winter T/A KSI from Michelin North America Inc. is designed for passenger and crossover utility vehicles (CUVs) in the Canadian

market. The BFG Winter T/A KSI replaces the brand’s Winter Slalom KSI tire in Canada. In the U.S., the Winter Slalom KSI is being phased out, according to Kevin Reim, BFGoodrich global product category manager for passenger products. “We are evaluating the BFGoodrich Winter T/A KSI for the U.S. market, but we do not have a definitive timeline. Our focus has been on the Canadian market first as we know how important the winter category is here,” Reim told Modern Tire Dealer at a launch event for dealers and media in Ottawa, Canada, last month. “We were laser-focused on meeting the snow tire season with this launch for Canada. We want to have a great supply for our Canadian BFGoodrich dealers. We will begin to evaluate the opportunity in the U.S. after we have successfully completed our Canadian launch,” Reim said. The bulk of the Winter T/A KSI line is launching now in 32 T-rated sizes for 14- to 18-inch rim diameters, which will cover 66% of the winter tire sizes in the Canadian market. Six more sizes, all T-rated, will be added in August 2018. Once the full line is released, the Winter T/A KSI will be available in 38 sizes covering 77% of the market, which will

be 13% more than the predecessor tire. BFGoodrich dealers in Canada can order the tire now for delivery in August.

Better performance in all conditions From compound to carcass, the Winter T/A KSI is new compared to its predecessor. The company says the Winter T/A KSI outperforms the Winter Slalom KSI, especially in wet braking and dry handling. Most dedicated winter products perform very well in snow traction; the challenge is managing the other performance areas, according to Reim. “We’ve been able to improve our snow traction slightly along with snow handling. The previous product was very tough to beat there. We’ve made big improvements in ice traction and also in wet braking. If you want to get more wet performance, you’re typically going to

Features of the new BFGoodrich Winter T/A KSI include a serrated shoulder profile similar to the brand’s All-Terrain T/A KO2 tire that helps the vehicle climb out of ruts on snowy roads.

Kevin Reim, global product category manager for passenger tires, says the interlocking 3D sipe technology used in the gForce Comp-2 A/S and other BFGoodrich tires is in the shoulders of the new Winter T/A KSI. The technology gives more shoulder stability for handling while providing biting edges for snow and ice traction.

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Focus on industry have to trade off snow performance and likewise with dry.” Reim says the company applied a combination of technologies to improve performance on wet and dry surfaces as well as on snow and ice. “Not trading off in the dry area is very important because we’ve been able to break some compromises there. So we’re very pleased with where we’ve gone with this product to break compromises and deliver the most value that we can in this category.” Compared to its Sabrina Garofalo says the Winter T/A predecessor, the KSI boosts market coverage by 13% Winter T/A KSI’s over its predecessor. The company discontinued less popular sizes and new compound has added 14 new dimensions. A total of more silica to add 38 sizes will be available when the grip in sub-freezing tire rollout is complete. temperatures while providing stability on warmer winter days. The new tire also features:

• high sipe density to maximize the amount of biting edges for snow and ice grip; • interlocking three-dimensional sipes that increase stability of shoulder blocks for improved grip on snow and ice as well as on dry surfaces; • serrated shoulder profile similar to the BFG All-Terrain T/A KO2 tire that provides additional grip in deep snow; • continuous center rib for on-center feel and steering control; • large circumferential and wide lateral grooves for water and slush evacuation; • saw-toothed groove edges that add biting edges for grip on snow and ice; and • casing protectors to prevent stone drilling. The new BFGoodrich Winter T/A KSI will compete against the Firestone WinterForce, General Altimax Artic, Goodyear Ultra Grip Winter, Hankook iPike RS, Yokohama iceGuard iG52c, and Toyo Observe GSi-5. Consumers expect a winter tire to perform well in slush, snow and ice conditions, according to Sabrina Garofalo, country operations marketing manager for ultra-high performance, off-road and winter tires. However, motorists are driving on ice, snow and slush only about 20% of the time in Canada. “That means 80% of the time consumers are driving on either dry, wet or damp roads. But that’s not necessarily what they are looking for in a winter tire. However, as a tire manufacturer we feel it is something important to deliver. Our goal is to provide an overall well-balanced tire which hits all winter attributes and also provides the additional benefits.” ■

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MTD April 2017

TPMS

GM/Cadillac Escalade Series: 2007-16 SUBJECT VEHICLES: 2007-2016 GM/Cadillac Escalade. RELEARN PROCEDURE? Yes. SPECIAL TOOLS NEEDED? A TPMS sensor activation tool ( J-46079) may be used in place of increasing/decreasing pressures to enable the sensor.

he tire pressure monitoring system (TPMS) on 2007 to 2016 GM/Cadillac Escalade Series system uses the remote control door lock receiver (RCDLR), body control module (BCM), four radio frequency (RF) transmitting pressure sensors, and the serial data circuit to perform the sensor learn mode functions. The sensor learn procedure must be performed any time the RCDLR is replaced, a sensor is replaced, or after the vehicle’s tires have been rotated. Once the learn mode has been enabled, each of the sensor’s unique identification (ID) codes can be learned into the RCDLR’s memory. When a sensor’s ID has been learned, the RCDLR sends a serial data message to the BCM to sound a horn chirp. This verifies the sensor has transmitted its ID, and the RCDLR has received and learned it. Each sensor takes a pressure measurement sample once every 30 seconds while in stationary mode. If the tire pressure increases or decreases by more than 1.6 psi (11 kPa) from the last pressure measurement, another measurement will occur immediately to verify the change in pressure. If a pressure change has indeed occurred, the sensor transmits in learn mode. When the RCDLR receives a learn mode transmission while in learn mode, it will assign that sensor ID to the location on the vehicle relative to the order in which it was learned. The RCDLR must learn the sensor ID codes in the

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proper sequence in order to determine sensor location. The first learned ID is assigned to left front, the second to right front, the third to right rear and fourth to left rear. The TPMS will cancel the learn mode if more than two minutes have passed and no sensors have been learned, or if the system has been in learn mode for more than five minutes. If the learn mode is canceled before any sensor has been learned, the RCDLR will remember all current sensor IDs and their locations. As soon as the first sensor ID code is learned, all other IDs are erased from the RCDLR’s memory. The updated tire pressures will not be displayed on the DIC until the RCDLR receives two more valid transmissions from each sensor. After performing the reset procedure below, always test drive the vehicle above 25 mph for at least two minutes Figure 1: Exploded view of a before viewing tire pressures clamp-in style tire pressure sensor. on the DIC. When the vehicle is stationary, the sensors go into stationary mode. In this mode, the sensors transmit once every 60 minutes to minimize sensor battery consumption. As vehicle speed increases to 25 mph (40 km/h), the sensors go into drive mode, in which they transmit once every 60 seconds. NOTE: The sensor’s pressure accuracy is about 2 psi (14 kPa) at temperatures from 14 to 158 degrees Fahrenheit (-10 to 70 degrees Celsius).

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Illustrations courtesy of General Motors Corp.

Two different kinds of TPMS sensors are used on these vehicles

TPMS Tire pressure monitor warning indicators When the TPMS detects a significantly under-inflated tire pressure, a “CHECK TIRE PRESSURE” message is displayed on the DIC and the low tire pressure indicator is displayed on the IPC. This DIC message will also set if a spare tire is in use. The DIC will display the “SERVICE TIRE MONITOR” message if one or more of the tire pressure sensors has malfunctioned or if all of the sensors have not been programmed successfully. If the warning indicators are still on, there is a problem in the TPMS. See the appropriate service information. When the tire pressure warning light illuminates and a warning message appears, immediately check air pressure of all tires and adjust to the specified pressure. Drive the vehicle above 25 mph (40 km/h) for a few minutes. If the warning indicators are still on, there is a problem in the TPMS. See the appropriate service information.

Reset procedures NOTE: When the wheels have been rotated, or a tire pressure sensor or RCDLR has been replaced, retrain the tire pressure sensor.

Tire pressure sensor relearn NOTE: Before proceeding with the following steps, ensure that no other sensor learn procedure is being performed simultaneously, or that tire pressures are not being adjusted on a TPMS-equipped vehicle within close proximity. NOTE: In the following procedure, a TPMS sensor activation tool ( J-46079) may be used in place of increasing/ decreasing pressures to enable the sensor. To use, place the activator antenna against the tire sidewall close to the wheel rim at the valve stem location, then press and release the ACTIVATE button. There are three ways to enable the learn mode; using a scan tool, using the keyless entry transmitters (if equipped) or using the driver information center (DIC). After the learn mode has been enabled there are two different methods of activating the transmitters in the tires; utilizing the J-46079 tire pressure monitor diagnostic tool at each tire or increase/decrease tire pressure for eight to 10 seconds in each tire. If a scan tool has been used to enable the learn mode, the J-46079 must be used to activate the transmitters.

3) After a horn chirp has sounded, repeat the procedure for the next three sensors in the following order: right front, right rear and left rear. 4) When the left rear sensor has been learned and a double horn chirp has sounded, the learn process is complete and the RCDLR exits the learn mode. 5) Turn ignition OFF, adjust all tires to the recommended pressures.

Alternate keyless entry transmitter or DIC learn enable method NOTE: If the learn mode cannot be enabled, the TPMS is not enabled in RCDLR. See the appropriate service information. 1) Ignition ON, initiate the TPMS learn mode using one of the following procedures: On vehicles equipped with keyless entry, simultaneously press the keyless entry transmitters lock and unlock buttons until a double horn chirp sounds indicating the learn mode has been enabled. The left front turn signal will also be illuminated. On vehicles not equipped with keyless entry, press and release the driver information center (DIC) INFO button until the TIRE LEARN message appears on the DIC display. Press and hold the SET/RESET 416 TIRE PRESSURE MONITOR SYSTEMS button until a double horn chirp sounds indicating the learn mode has been enabled. The left front turn signal will also be illuminated. NOTE: If a horn chirp does not sound after 35 seconds for any of the four sensors, turn the ignition switch to OFF position to exit the learn mode. Repeat procedure from Step 1.

2) Activate the sensors by one of the following methods:

1) Using a scan tool, initiate the TPMS learn mode. A double horn chirp will sound indicating the learn mode has been enabled. The left front turn signal will also be illuminated. 2) Activate the sensors by one of the following methods:

Increase/decrease method: Starting with the left front tire, increase or decrease the pressure for eight to 10 seconds, then wait for a horn chirp sounds. The horn chirp may occur before the eight to 10 second pressure increase/decrease time period has been reached, or up to 30 seconds after the eight to 10 second pressure increase/decrease time period has been reached. Sensor activation tool method: Starting with the left front tire, hold the scan tool against the tire wall aiming upward with the antenna. Press the activate button and wait for a horn chirp. After the horn has chirped, the turn signal will illuminate indicating the next location to be learned.

Increase/decrease method: Starting with left front tire, increase or decrease the pressure for eight to 10 seconds, then wait for a horn chirp. The horn chirp may occur before the eight to 10 second pressure increase/decrease time period has

3) After a horn chirp has sounded, repeat the procedure for the next three sensors in the following order: right front, right rear and left rear. 4) After the left rear sensor has been learned, a double horn

Preferred scan tool learn mode IMPORTANT: In the event a particular sensor’s information is displayed on the special tool upon activation but the horn does not chirp, it may be necessary to rotate the wheel valve stem to a different position due to the sensor signal is being blocked by another component.

been reached, or up to 30 seconds after the eight to 10 second pressure increase/decrease time period has been reached. Sensor activation tool method: Starting with the left front tire, hold the scan tool against the tire wall aiming upward with the antenna. Press the activate button and wait for a horn chirp. After the horn has chirped, the turn signal will illuminate indicating the next location to be learned.

MTD April 2017

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TPMS chirp will sound. Turn the ignition switch to OFF position to exit the relearn procedure. Adjust all tire pressures to specification.

Demounting/mounting procedures NOTE: If a vehicle’s tires are replaced with those not having a TPC spec number, the TPMS may give an inaccurate low pressure warning. Non-TPC spec tires may give a low pressure warning that is higher or lower than the proper warning level achieved by TPC Spec numbered tires. When the wheels have been rotated, or a tire pressure sensor or RCDLR has been replaced, retrain tire pressure sensor. See “Reset procedures.”

Tire pressure sensor There are currently two different kinds of TPMS sensors in use on the vehicles covered in this article. Identification of which sensor is in use can easily be made after the tire has been removed from the wheel by referring to Figure 1 and Figure 2.

Removal/installation 1) Raise the vehicle on a suitable support. Remove the tire/wheel assembly from the vehicle. 2) Demount the tire from wheel following the tire changer manufacturer’s instructions while paying Figure 2: Exploded view of a special attention to the fol- snap-in style tire pressure sensor. lowing to avoid damaging tire pressure sensor: • Place the sensor’s cap and valve on a dry, clean surface after removal. The cap is aluminum and the valve is nickel-plated to prevent corrosion. DO NOT substitute a cap or Figure 3: Installation of a snap-in valve made of any other sensor/valve assembly. material. • Position the bead breaking fixture 90 degrees from valve stem when separating tire bead from wheel. • Position the mounting/demounting head so the tire iron (or pry bar) can be inserted slightly clockwise of sensor body when prying tire bead up and over the mounting/ demounting head. • Using a tire machine, rotate tire/wheel assembly clockwise when transferring the tire bead to the outside of the wheel rim. • Repeat items for the inner bead.

3) If the TPMS sensor is the clamp-in style (see Figure 1), follow clamp-in style removal as follows. If it is a snap-in style (see Figure 2), follow the Snap-in Style Removal below.

Clamp-in style sensor removal 1) Remove the tire pressure sensor nut (see Figure 1).

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MTD April 2017

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TPMS 2) Remove the sensor from the wheel hole. 3) Remove the sensor grommet from valve stem. 4) Follow clamp-in sensor installation, to replace the sensor. Snap-in style sensor removal 1) Remove the Torx screw (3) from the tire pressure sensor (2) and pull it straight off the tire pressure valve stem (1) (see Figure 2). 2) Remove the tire pressure valve stem by pulling it through the rim. 3) Follow snap-in style sensor installation below, to replace the sensor. Clamp-in sensor installation 1) Clean any dirt or debris from the grommet sealing areas. Install grommet on sensor valve stem. 2) Insert the sensor in the wheel hole with the air passage facing away from the wheel. 3) Install a sensor nut, and position the sensor body parallel to the inside wheel surface while tightening nut to 62 in.-lbs. (7 N.m). 4) Before installing tire on the wheel, note the following items to avoid tire pressure sensor damage upon tire mounting: • Position the mounting/dismounting head 180 degrees from the valve stem. Position the bead transition area 45 degrees counterclockwise of the valve stem. • Using a tire machine, rotate the tire/wheel assembly clockwise when transferring the tire bead to the inside of the wheel rim. Repeat these steps for the outer bead.

5) Install the tire on the wheel. Install the tire/wheel assembly on the vehicle. Retrain the tire pressure sensor. See “Reset procedures.” NOTE: A service replacement tire pressure sensor is shipped in the OFF mode. In this mode, the sensor’s unique identification code cannot be learned into the RCDLR’s memory. The sensor must be taken out of the OFF mode by spinning the tire/wheel assembly above 25 mph (40 km/h) for at least 10 seconds in order to close the sensor’s internal roll switch.

Snap-in style sensor installation 1) Assemble the tire pressure sensor (2) to the valve stem and install the new Torx screw (3) (see Figure 2). 2) Apply tire soap to the rubber portion of the valve stem. 3) Using a tire valve stem mounting tool, pull the valve stem through in a direction parallel to the valve hole on the rim. 4) Before installing tire on the wheel, note the following items to avoid tire pressure sensor damage upon tire mounting:

• Position the mounting/demounting head 180 degrees from the valve stem. Position the bead transition area 45 degrees counterclockwise of the valve stem. • Using a tire machine, rotate the tire/wheel assembly clockwise when transferring tire bead to the inside of the wheel rim. • Repeat these items for the outer bead. Torque specifications Component

Ft.-lbs. (N.m)

5) Install tire on wheel. Install tire/wheel Spare tire hoist retaining bolt 30 (40) assembly on vehicle. Retrain the tire Wheel nut 140 (190) pressure sensor. See “Reset procedures.” In.-lbs. (N.m) Clamp-in sensor nut 62 (7) NOTE: Snap-fit TPMS sensors are Snap-in sensor Torx screw 11.5 (1.3) still shipped in the OFF mode. However, the TPMS no longer needs to be spun to remove it from the OFF mode. The sensor will exit its OFF state when the tire is inflated. The technician can then program the vehicle as normal. ■

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

Quik-Link: 800-687-1557 ext. 14134

MTD April 2017

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Products TBC has new Sailun SUV all-season performance tire

Coats GTS-90 services tires up to 24 inches in diameter

The new Sailun Atrezzo SVR LX+ highperformance all-season tire from TBC Brands is designed for SUVs, sport trucks and crossover vehicles. The SVR LX+ is available in H-, V- and W-rated extra-load sizes from 20 through 24 inches sizes with M+S ratings for a wide range of OE and plus-size fitments. The tire’s aggressive directional tread design with large tread blocks is designed to provide responsiveness and improved handling. Other features include symmetric V-shaped channels that provide excellent water evacuation for improved wet traction and reduced hydroplaning and wide open shoulder tread blocks that enhance high-speed cornering stability and handling. It is backed by a 40,000-mile tread wear warranty. TBC Brands LLC Quik-Link: (800) 687-1557, ext. 14170 www.mtdquiklink.com/14170

The Coats GTS-90 tiltback tire changer from Hennessy Industries Inc. services tires from 6 to 24 inches in diameter. The GTS-90 features a powered roller disk to help with bead loosening, bottom bead removal and top bead mounting. It also assists with tire pressure monitoring system (TPMS) access. Hennessy says the tire changer’s two-speed electric motor provides total control. The Robo-Arm’s cylinder is in line with the piston to allow direct articulation and maximize power. A single-point sealer concentrates air flow to seal beads more efficiently. HENNESSY INDUSTRIES INC. Quik-Link: (800) 687-1557, ext. 14173 www.mtdquiklink.com/14173

Robinair machine services standard and hybrid air conditioning systems The Robinair AC1234-6 was the first commercially available fully automatic R1234YF machine to meet the SAE’s requirement for recovering, recycling and recharging vehicle A/C systems with the new refrigerant, according to Bosch Automotive Service Solutions. Capable of servicing both standard and hybrid vehicle A/C systems, the AC1234-6 includes an integrated refrigerant identifier that samples the refrigerant prior to recovery. Other features include programmable vacuum operation to help get to the necessary vacuum level in any condition quickly, system leak test to identify gross leaks in a system, and automatic oil drain to show how much oil was removed during service. BOSCH AUTOMOTIVE SERVICE SOLUTIONS Quik-Link: (800) 687-1557, ext. 14171 www.mtdquiklink.com/14171

The standard practice of visually inspecting a brake hose for cracking or leaking will not reveal potential trouble inside, according to CRP Automotive. After five years of use, the ID (inner diameter) of the hose can swell (shown at left) or collapse (shown at right) due to moisture and heat, restricting the proper flow and contaminating the brake fluid. When replacing a brake hose, CRP Automotive recommends replacing the hoses on both sides of the axle to ensure even braking performance and wear. The company offers its Rein Automotive Brake Hoses as direct replacement for OE assemblies on popular European vehicles. CRP AUTOMOTIVE Quik-Link: (800) 687-1557, ext. 14174 www.mtdquiklink.com/14174

Hunter adds AutoComp Elite brake lathe

The new Open Country Q/T from Toyo Tires U.S.A. Corp. is a touring all-season tire available in 35 sizes for CUVs and SUVs. Contributing to the quiet ride and all-season performance is a unique tread design with several key features. Toyo says Silent Wall technology provides a quieter ride by reducing pipe resonance. Four wide circumferential tread grooves improve wet traction by evacuating water. Open lateral slits in the tread also improve water drainage for better wet performance. The Open Country Q/T comes with a 65,000-mile tread wear warranty and is backed by the Toyo Tires 45 Days/500 Miles No Regrets Trial Offer. TOYO TIRES U.S.A. CORP. Quik-Link: (800) 687-1557, ext. 14175 www.mtdquiklink.com/14175

Hunter Engineering Co.’s new AutoComp Elite brake lathe features automatic compensation technology that directly determines the position of the internal plates to maximize speed and accuracy without operator intervention. The new 7-inch touch screen allows technicians to quickly look up required adaptors, operate the lathe including changing cutting direction and speed, and view instructional videos. The BitMinder feature monitors bit life and recommends replacement to improve cut quality and reduce waste. The company says the patented Anti-Chatter Technology (ACT) eliminates the buildup of vibration (chatter) that can occur when machining rotors at a fixed speed. HUNTER ENGINEERING CO. Quik-Link: (800) 687-1557, ext. 14172 www.mtdquiklink.com/14172

Rein Automotive brand offers brake hose solution

Toyo unveils all-season Open Country Q/T for CUVs and SUVs

MTD April 2017

re Dealer r’s Ti of ale th e D

Modern Tir e

Award ear eY

25 th

ANNIVERSARY 1993 - 2017

Nominations are now open Send us your choice for our 2017 Tire Dealer of the Year We are now accepting nominations for the Silver Anniversary edition of Modern Tire Dealer’s Tire Dealer of the Year award. We are looking for an exceptional tire dealer to join the ranks of 24 other industry greats in receiving the highest honor a dealer can receive. In addition to industry recognition, the winning dealer’s favorite charity will receive a minimum contribution of $1,000 from MTD. The dealer will also be featured in the September issue of Modern Tire Dealer and on-line. In selecting MTD ’s 25th annual Tire Dealer of the Year, judges will consider five elements: 1. Business Success 2. Marketing Skills 3. Management Skills 4. Industry Knowledge 5. Community Involvement

Any independent tire dealer, except our previous winners, is eligible for the competition. Content of nominations, not entry embellishments, will determine the winner, so keep entries factual and simple. Support material may be included, but is not mandatory. To immediately nominate a dealer, log onto: http://www.moderntiredealer.com/tiredealeroftheyear and fill out our online nomination form. For more information, contact MTD Editor Bob Ulrich at: bob.ulrich@bobit.com.

Snap your smartphone camera on this QR code to go directly to the Tire Dealer of the Year page on our website

Deadline for nominations is May 26, 2017

Instant information direct from MTD advertisers

To request free product information by phone, call 800-687-1557, enter the extension number listed below, and you will be immediately transferred to the company you want to talk with — it takes only seconds. To request information online, log on to www. mtdquiklink.com/ plus the corresponding Quik-Link number. You’re just a click away from receiving free information on the new products that interest you. Advertiser

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Your turn

Online tire buyers are seen as savvy buyers or ‘bottom feeders’ Each month we ask members of our National Advisory Council (NAC) a question or questions on a current hot topic. Recently we asked, “Do you sell tires to consumers online via your website? If so, how successful is this for you? If you don’t now, do you see your company selling tires online in the future? Do you feel more tire manufacturers will go this route — following the lead of Goodyear Tire & Rubber Co. and Michelin North America Inc.? And are you signed up to be an installer for these companies when they sell tires to someone online?” Here are some of their responses.

the consumers free tire installation. We could not compete with our supplier. This has strained our relationship with Goodyear! Our dealership has changed our focus away from Goodyear after our 25-year relationship. 4. Wholesale accounts can purchase tires on our website. Retail can look and call. We will probably offer tires on the web to retail customers at some point. I feel more manufacturers will sell on the web. We are signed up to be an installer for several online companies, but have had very few installations. Our location usually has a better overall price for the customer than the company website, but the younger population often will buy on the web no matter what.

5. Yes, we do sell tires online, but it is too early to tell the effect it’s had on our business.

What’s on your mind? 1. Customers are able to source tires online from our website. More and more customers expect a seamless experience online — a turnkey purchasing decision is the expectation. If you come up short, you’re behind and are going to miss sales. Eventually all manufacturers will have to have some point-of-sale that is both mobile and digital. We are signed up as a preferred installer for several of the larger, more successful online retailers. We’ve also partnered with one of the “Big 3” tire makers to install their online purchases. These opportunities create service sales. When you get the car in and get it on the rack — after doing your due diligence — invariably, these additional sales opportunities create added revenue.

We also asked council members what was on their mind. Here are some responses.

2. As a wholesale distributor we sell via an online site to our dealer customers. I believe more manufacturers will follow Goodyear and Michelin’s lead and go online. Furthermore, I believe we’ll see more and more online tire sales competition fill this space. This trend is occurring in virtually every industry. While it won’t replace brick and mortar dealers, it adds that element of competition and requires dealers to work that much harder for the sale and sell your competitive advantages to the savvy internet shopper/buyer.

Jerry Reygaert, Owner Reys Auto & Tire Shelby Township, Mich.

3. We sell tires online through our website. I feel all tire manufacturers will all sell tires online as it is the wave of the future. We are signed up for the installer programs. The vast majority of these customers so far have been bottom feeders. The majority don’t want an alignment or any other services. The tire manufactures tell us it attracts new customers. What a joke! Goodyear had its Black Friday Sale last year which gave

With the potential tax cuts proposed by the Trump administration, optimism is solid in the marketplace. Dealer and consumer confidence is driving some nice business/tire units. Bring on the warm weather! Jon Shields, Field Sales and Training Carroll Tire Co. Atlanta, Ga.

The soft winter has hurt our shop. We can’t wait for a hot summer!

Why were Chinese tariffs removed from truck tires? Bill Ziegler, President Ziegler Tire & Supply Co. Massillon, Ohio

Check out www.moderntiredealer.com for the latest tariff information. MTD’s Senior Editor and Digital Projects Editor Joy Kopcha keeps her finger on the pulse of this topic. For those wanting clarification on the recent tariff decision, check out “Supply and demand: Why there are no tariffs on truck tires from China.” The very latest in tariff information, and archived news items, are all easily accessed on our homepage under the “Tariffs” button. See also page 8 in this issue. – Ed. ■

Join Modern Tire Dealer’s National Advisory Council

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

MTD April 2017

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Quik-Link: 800-687-1557 ext. 14138