Modern Tire Dealer - May 2024

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THE FORECAST FOR EV TIRES MAXIMIZING YOUR ONLINE PRESENCE TIPS FOR SUMMERTIME BATTERY SERVICE

TIRE DEALER HOW TO...

SURVIVAL

GUIDE May 2024 | Vol. 105, No. 5 | $10 | www.moderntiredealer.com

• HAVE CHALLENGING CONVERSATIONS WITH EMPLOYEES • KEEP THE DEAL ALIVE WHEN SELLING YOUR BUSINESS • DEFINE THE VALUE YOU DELIVER • CONNECT WITH CUSTOMERS ON THE PHONE

626-536-2339 @PREDATORTIRES WWW.PREDATORTIRES.COM TRANSAMERICA TIRE CO.,LTD. marketing@transamericatire.com 5118 PARK AVE., SUITE 601, MEMPHIS, TN 38117

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The Industry’s Leading Publication May 2024, Volume 105, Number 5 Electric vehicles are on the rise, so what does that mean for the future of tires designed for EVs? Find out, starting on page 22.

Photo: Hankook Tire America Corp.

DEPARTMENTS 4 Editorial

Gratuitous cheap shot Clickbait list does lots of harm, zero good

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

8 Industry News

American Omni execs discuss strategy Company also showcases new tire lines

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

20 Your Marketplace

Will weakness today spur summer sales?

Demand for tires and service fell in March

50 Business Insight

How to get off the ground and keep going Putting your dealership on the path to success

52 Mergers and Acquisitions

Best practices for mutual confidentiality agreements Guidelines to protect your business

54 Dealer Development

Why maintaining your independence is important Nobody can take care of customers like you

56 EV Intelligence

The four stages of business growth What stage are you in today?

58 Focus On Dealers:

Continental focuses on partnerships at Gold meeting Will launch new tires, consolidate lines in 2024

60 Focus On Dealers:

Big O Tires is building for success Eight out of 10 stores reported sales growth in 2023

62 Products 64 TPMS

F E AT U R E S 22 The forecast for EV tires Growth will follow EV acceptance

28 Insider insights

Dealers share strategies for selling EV tires

32 Maximizing your online presence

Expert tips for effective websites

34 Tips for summertime battery service

Heat is a major factor in longevity

Tire Dealer Survival Guide

38 Tire Dealer Survival Guide introduction

39 How to have challenging conversations with employees Finding common ground is critical

42 How to keep the deal alive when selling your business Four big mistakes to avoid

44 How to define the value you deliver

What are your stated and recurring positions?

48 How to connect with

customers on the phone Proven techniques to close the sale

Lincoln Aviator — 2023

66 Ad index Modern Tire Dealer is a proud member of: on the cover: Photo: 505231744 | releon8211 | Gettyimages.com

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Editorial

Gratuitous cheap shot

CLICKBAIT LIST DOES LOTS OF HARM, ZERO GOOD By

Mike Manges

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long time ago, when I was a kid, I bought a weatherbeaten copy of “The People’s Almanac Presents: The Book of Lists” at a neighborhood garage sale.

Published in 1977, the paperback, which was the size of a small brick, contained hundreds of lists about a galaxy of obscure topics — everything from “The 10 Most Intelligent Breeds of Dogs,” “12 Museums of Limited Appeal” and “Seven Well-Known Sayings Attributed to the Wrong Person” to “13 Possible Sites for the Garden of Eden,” the “Five Most OftSighted Lake and Sea Monsters” and “10 Really Bad Canadian Sports Teams.” (Sorry, Blue Jays fans!)

All these years later, I still don’t know what “The People’s Almanac” was, but “The Book of Lists” was educational, entertaining and memorable.

A good, well-researched list — or series of lists — presented in an amusing or compelling way can have that effect.

Other lists, however, are probably best-ignored or forgotten, such as one that recently appeared on a certain news website and was forwarded to me by a colleague.

Presented in the form of an ad-saturated slideshow, “The 15 Worst Tire Brands on the Market” list is introduced by this anonymously written preamble: “Every driver knows the critical role that tires play in the safety and performance of their vehicle.

However, not all tires are created equal, and some brands fall far short of the mark when it comes to quality, durability and overall reliability.

“We’re shining a spotlight on the worst tire brands currently on the market. From frequent blowouts to poor traction in wet conditions, these tires have earned a notorious reputation for leaving drivers stranded, frustrated, and questioning their purchasing decisions.”

The list goes on to savage a bunch of tire brands via a torrent of conjecture, accompanied by random photos that don’t seem to be remotely connected to the tires “in question.”

In case you don’t have time to Google the list, I’ll share some verbatim excerpts with you. I’ve left out the tire brands, by the way.

For your clarification, each of the following paragraphs “describes” a different brand: “X tires have earned a reputation for inconsistent quality control, resulting in issues such as sidewall bulges, rapid tread wear, and poor overall performance. Users have reported instances of these tires failing prematurely or experiencing blowouts, which can pose safety hazards on the road. ” “X tires have faced criticism for their inconsistent quality and subpar performance in various driving conditions. Users have reported issues such as uneven tread wear, poor traction on wet

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The original “Book of Lists” was fun to read. The “15 Worst Tire Brands on the Market” list? Not so much.

1411192458 | ljubaphoto | gettyimages.com

surfaces, and sidewall failures. Additionally, X tires may lack the durability needed to withstand the rigors of daily driving, leading to premature wear and the need for frequent replacements.”

“X tires are often associated with budget vehicles but are frequently cited for their subpar performance and durability. Users have reported problems such as uneven tread wear, poor traction in wet conditions, and a tendency to develop sidewall cracks.”

“X tires have gained a reputation for their poor tread life and susceptibility to sidewall damage. Many users have reported premature wear, uneven tread wear patterns, and issues with maintaining traction, especially in wet conditions.”

“X tires are commonly found on budget vehicles but are frequently criticized for their lackluster performance and durability. Users have reported problems such as premature wear, sidewall cracks, and a tendency to lose traction quickly.”

At no point are these “observations” credited to any person, such as a tire dealer, consumer or third-party industry expert, or anything, like a website or an online e-commerce portal.

These types of lists — also known as “clickbait” — are nothing new. You’ll find them in other forms of media. They’re not always helpful.

In my opinion, “The 15 Worst Tire Brands on the Market” list does nothing to benefit tire buyers, tire manufacturers or tire dealers.

In fact, it comes across as a gratuitous cheap shot.

Could its contents also be defamatory? That’s probably up to tire manufacturers’ legal departments to determine. ■ If you have any questions or comments, please email me at mmanges@endeavorb2b.com.

MTD May 2024

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ModernTireDealer.com DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER

Stay tuned to MTD’s podcast!

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

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

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

The team at Continental Tire the Americas LLC recently welcomed guests to its new headquarters, where this Corvette was on display.

Photo: MTD

Have you seen our photo galleries?

We’ve always known independent tire dealers like to read about their peers and competitors, but apparently our readers also really like to see their fellow tire dealers. And when you can’t make the trip yourself, the next best thing is to hitch a ride with MTD editors via our photo galleries.

1.

Photos: Continental Gold dealers gather in Mexico

2. Photos: Continental welcomes guests to new HQ 3. Photos: Top retreaders provide inside look at plants 4. Discount Tire acquires Suburban Tire Auto Repair Centers 5. Love’s discusses its commercial tire strategy

ACCOUNT EXECUTIVES Darrell Bruggink dbruggink@endeavorb2b.com (608) 299-6310 Marianne Dyal mdyal@endeavorb2b.com (706) 344-1388 Sean Thornton sthornton@endeavorb2b.com (269) 499-0257 Kyle Shaw kshaw@endeavorb2b.com (651) 846-9490 Martha Severson mseverson@endeavorb2b.com (651) 846-9452 Chad Hjellming chjellming@endeavorb2b.com (651) 846-9463 MTD READER ADVISORY BOARD Rick Benton, Black’s Tire Service Inc. Jessica Palanjian Rankin, Grand Prix Performance John McCarthy Jr., McCarthy Tire Service Co. Inc. Jamie Ward, Tire Discounters Inc. CUSTOMER/SUBSCRIPTION SERVICE (877) 382-9187 moderntiredealer@omeda.com ENDEAVOR BUSINESS MEDIA, LLC CEO: Chris Ferrell President: June Griffin COO: Patrick Rains CRO: Paul Andrews Chief Digital Officer: Jacquie Niemiec Chief Administrative and Legal Officer: Tracy Kane EVP Transportation: Kylie Hirko VP Vehicle Repair: Chris Messer

6. Photos: Big O Tires highlights new dealer resources 7.

Continental to roll out new tires, consolidate lines in 2024 Modern Tire Dealer (USPS Permit 369170), (ISSN 0026-8496 print) is published monthly by Endeavor Business Media, LLC. 201 N Main St 5th Floor, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI, and additional mailing offices. POSTMASTER: Send address changes to Modern Tire Dealer, PO Box 3257, Northbrook, IL 60065-3257. SUBSCRIPTIONS: Publisher reserves the right to reject non-qualified subscriptions. Subscription prices: U.S. ($81.25 per year). All subscriptions are payable in U.S. funds. Send subscription inquiries to Modern Tire Dealer, PO Box 3257, Northbrook, IL 60065-3257. Customer service can be reached toll-free at 877-382-9187 or at moderntiredealer@omeda.com for magazine subscription assistance or questions.

8. Reasons why M&A deals died in 2023 9. Big O Tires is building for success 10. American Omni execs discuss strategy, success

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

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Printed in the USA. Copyright 2024 Endeavor Business Media, LLC. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopies, recordings, or any information storage or retrieval system without permission from the publisher. Endeavor Business Media, LLC does not assume and hereby disclaims any liability to any person or company for any loss or damage caused by errors or omissions in the material herein, regardless of whether such errors result from negligence, accident, or any other cause whatsoever. The views and opinions in the articles herein are not to be taken as official expressions of the publishers, unless so stated. The publishers do not warrant either expressly or by implication, the factual accuracy of the articles herein, nor do they so warrant any views or opinions by the authors of said articles.

MTD May 2024

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√ Strong mud traction √ High strength sidewall

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Industry News

American Omni execs discuss strategy COMPANY ALSO SHOWCASES NEW TIRE LINES

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t a recent ride-and-drive event at MSR Houston Speedway in Texas, MTD had the opportunity to talk with Tom Brackin, CEO of American Omni Trading Co. (AOT), and his son, AOT President Chris Brackin, as well as Tom’s wife, Kathy, who is the company’s credit manager, about AOT’s strategies and the keys to its success over the past 34 years, The family-run company currently employs 64 people, with its headquarters in Katy, Texas. It has 18 people, including engineers, in its China office, which opened in 2006.

“Our success is directly related to the team that we’ve put together over the years, as well as the incredible support of the manufacturers we use, along with our great customers,” said Tom. He did not say what the company’s current sales volume is, but did say AOT is importing 1,000 containers per month.

Chris said his father understands how to work with people. “He met people on the floor of shows and factories and kept in touch with them and today, they have worked their way to the top of their companies.”

In fact, it was a chance meeting at the Singapore Trade Show in 1993 when Tom first met Jane Vongsariyavanich, current CEO of Deestone Co. Ltd., who was just starting her career at the time. The two kept in touch and in 1994, Deestone signed an agreement with AOT to sell its tires.

As with many companies, AOT made numerous changes to navigate its way through the pandemic. Tom said the company switched to a hybrid work strategy.

“We put our trust in our team that they would work and they delivered.”

Another key component was listening to customers. Kathy said this required flexibility on the credit side as supply chain issues, as well as tariff fluctuations, were constant challenges.

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“We believe in relationships and having a high level of transparency and honesty,” says Tom Brackin, CEO of American Omni Trading Co. (background), with his son, AOT President Chris Brackin.

Photo: MTD

Tom was quick to point out that “tariffs are not going away. They have been very helpful in allowing the major (tire manufacturers) to maintain their higher prices.”

Looking toward the future, Chris said the company is going to be moving into other segments for growth through diversification. He declined to say what areas the company is looking at right now.

Chris said AOT continues to automate and look for efficiency in everything it does.

Its Logistic Management System (LMS) allows customers to track their tires in the distribution process on a day-to-day basis, from the time they are on the boat until they arrive at the customer’s door.

From a product portfolio standpoint, Chris said the company is researching an electric vehicle tire line, but does not have a timeframe for it.

AOT does have plans to introduce nine new tire lines, with some lines coming this year and the rest slated for the first quarter of 2025.

In addition to its Thunderer and Americus tire lines, AOT currently distributes the Vercelli, Venezia, Deestone, Crop

Max, Nutech, Omni-Cargo, Lancaster and Transmax tire lines.

Tom said there are no plans to sell the company. “My goal is to continue to build AOT, along with mentoring my son. We believe in relationships and having a high level of transparency and honesty. That means everything to us.”

During the event, AOT showcased the capabilities of its Thunderer Mach I Plus and its Americus Recon Tour tires.

Attendees also heard directly from AOT executives about the tire lines.

Tom told dealers “our job is to make it easy for you to go to market with our tires.”

Tom said the Thunderer and Americus lines are manufactured by Deestone.

He said AOT owns the molds for both the Americus and Thunderer tire lines. AOT distributes its Americus tire line through multiple dealers and the Thunderer line goes through regional wholesalers.

Tom and Chris said the two brands are in the “tier-four-plus market segment, but are quickly moving up to tier-three” status.

Jon Vance, AOT director of business development, said, “Our job is to follow the market and be proactive. It all starts with ‘why’?”

The “why,” according to Vance, is the input the company has received from its dealers requesting newer designs and a portfolio that is easier to stock and sell.

“Consumers are increasingly seeking out value-priced products without sacrificing safety and reliability.”

That is the segment that both the Americus and Thunderer lines of tires serve.

In looking at its product portfolio, AOT has consolidated the Thunderer Mach I, II, III and IV lines into its Mach I Plus touring tire line. The Mach V UHP tire and Ranger 007 tire round out the line.

On the Americus side, the Touring Plus and Sport HP have been consolidated into the Recon Tour line.

MTD May 2024

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Industry News

Bites Trelleborg prices going up Yokohama TWS announced starting May 2024 it will increase prices on its Trelleborg brand tires by 5%. The price adjustment is a result of strong inflation and a rise in the cost of raw materials and higher inbound logistics costs.

Dill buys Exactra Dill Air Controls Products has acquired Exactra Inc., which manufactures tire inflating valves as well as various related inflating systems. Exactra has been a family-owned business since 1988 and was founded by Maurice and Norma Robitaille. Marc Robitaille has been the president for the past 10 years.

Nokian CEO to retire Jukka Moisio, president and CEO of Nokian Tyres, has informed the company that he intends to retire during 2024. Nokian named Moisio its president and CEO in 2020. The board of directors has begun the process of naming a successor.

TBC names COO TBC Corp. has named Bill Schafer as chief operating officer for TBC Brands and TBC International. Schafer will report directly to Sam Kato, president and CEO of TBC Corp. Schafer will oversee all sales initiatives, including customer service, commercial tire sales, equipment and non-tire sales and operations for those two divisions.

EPA considers lead weights The U.S. Environmental Protection Agency (EPA) is looking for information that could be used in future rulemaking about the use of lead wheel weights.

The EPA is asking people to comment on how they may have been exposed to lead through lead wheel weights.

SRNA promotes Horne Sumitomo Rubber North America Inc. (SRNA) has promoted Wayne Horne to strategic account manager. Horne has been a part of SRNA for almost eight years and has held various roles. Most recently, he was a sales strategist.

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Maguire shares secrets of NETSA’s success

atie Maguire was named executive director of the New England Tire and Service Association (NETSA) at the end of 2023, replacing Tony DeSimone, who held that role for many years.

In April, NETSA wrapped up another successful trade show and convention. “Last year, we had 85 booths. This year, we sold out 107 booths.”

In this MTD exclusive, Maguire, whose tire industry career includes a long stint at Mohawk Rubber Sales of New England Inc., which was acquired by Myers Tire Supply in 2022, explains why NETSA remains vibrant and successful.

MTD: While many state and regional tire dealer associations have fallen by the wayside over the years, NETSA appears to be bigger and more vigorous than ever. What makes NETSA so successful?

Katie Maguire, executive director of the New England Tire Dealers and Service Association (pictured left, with Stacey Miller, vice president of communications for the Auto Care Association) attributes much of the group’s success to the dedication of its board of directors.

Photo: NETSA

Maguire: It’s our board. Every board member — past and present — has been so active in the association. I’ve been on the board since 2014 and I’ve learned so much. When we have our board meetings... we make things work. We put our heads together and try to create what we think is best for our members. Every NETSA board member is active. We have committees. We talk to each other two or three times a week. And I think that helps us stay together as an association.

MTD: The work NETSA has done on Right to Repair has been impressive...

Maguire: We have someone working on the Maine Right to Repair (issue.) We’re continuing to work on the Massachusetts Right to Repair issue. Sen. (Elizabeth) Warren was in town a couple of weeks ago and had a roundtable with one of our board members in his shop. She’s really involved in pushing Massachusetts Right to Repair.

She’s really backing it, which I think is great for us. (Editor’s note: In November 2023, voters in Maine approved a ballot measure to require auto manufacturers to share access to certain vehicle diagnostic tools with vehicle owners, as well as independent repair facilities. Voters approved a similar bill in Massachusetts three years earlier.)

MTD: Beyond legislative work, what other services has NETSA rolled out for its members?

Maguire: We offer life and accident insurance. We offer website help for our (members). We offer (help with) digital and social media. We just brought on a customer re-engagement program. Back in the day, you were knocking on doors, saying, ‘Here are our benefits. This is why we think you should become a member.’ And that’s one thing we still do. We also use social media. We use email.

MTD: In your opinion, why should dealers get involved with local tire dealer associations?

Maguire: Going back to legislative (issues), there are things that I think they don’t know about. Our members in Maine were aware the Right to Repair bill passed by 84%, but didn’t realize there was a lot of push-back on it. To get them involved, we sent them a letter and (asked) if they could send letters to their legislators. — Mike Manges MTD May 2024

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Industry News

Discount Tire makes moves online and in Chicago market

Bites McCarthy opens wheel site McCarthy Tire Service Co. Inc. has unveiled a new in-house commercial wheel refinishing facility, which can refinish more than 1,000 wheels per day. The facility in Wilkes-Barre, Pa., is designed to serve as a one-stop shop to serve fleets’ commercial tire and wheel needs.

Discount Tire is pushing into the Chicago, Ill., market with the acquisition of Suburban Tire Auto Repair Centers.

Photo: Discount Tire

Toyo and Nitto back LPGA The Toyo and Nitto brands from Toyo Tire U.S.A. Corp. are both sponsoring The Chevron Championship, one of the major championships on the Ladies Professional Golf Association (LPGA) Tour. In addition to sponsoring the tournament, the Toyo brand is continuing its support of professional golfer Yuka Saso, who the brand calls “a rising star.”

BKT earns Cat honors Balkrishna Industries Ltd. (BKT) has achieved Excellent Level certification from Caterpillar Inc. under Caterpillar’s Supplier Excellence Recognition Process.

The certification is the highest honor Caterpillar bestows on its suppliers.

Tekmetric adds tire suite Tekmetric has announced its shop management solution for tire dealers, the Tekmetric Tire Suite. Tekmetric Tire Suite is designed to enhance efficiency for service advisors and technicians by integrating tire management tasks within Tekmetric software. DOT data and tire specs are available within the Tekmetric app.

Yokohama breaks ground Yokohama Rubber Co. Ltd. has broken ground on its new passenger and light truck tire plant at the Alianza Industrial Park in Saltillo, Coahuila, Mexico. The state-of-the-art plant will be built on a 150-acre site and tire production is anticipated to begin in early 2027, with a planned annual output of five million tires.

Hyundai picks Pirelli Pirelli & Cie SpA has developed a version of its P Zero tire for the Hyundai IONIQ 5 N electric vehicle. The tire contains Pirelli’s Elect technology.

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iscount Tire is moving into “The Windy City” via the acquisition of Suburban Tire Auto Repair Centers, a six-store chain that will continue to operate under its existing name.

Terms of the deal, which closed on March 31, have not been disclosed.

Suburban Tire Auto Repair Centers’ retail management and store workers will remain employed, according to Discount Tire officials.

“Discount Tire is pleased to increase our service offerings to consumers and to fleet operators in and around Chicago,” says Christian Roe, Discount Tire’s chief revenue officer.

“Suburban Tire’s commitment to treating customers right and focusing on safety by providing expert technicians supports Discount Tire’s goal of making the tire, wheel and auto service experience inviting, easy and safe.”

Suburban Tire Auto Repair Centers began in 1976 when founders Duke and Susan Leffler opened the dealership’s first location in Chicago.

The company is operated today by third-generation family member, Nathan Leffler, and his father, Steve Leffler, alongside Gordon Leffler, the son of its founders.

Gordon and Nathan will continue to manage the stores’ day-to-day retail and service operations. They will report to Earl Davidson and Chris Adams at Discount Tire, who have oversight of the company’s full-service business segment.

“We are pleased to join the Discount Tire brand and continue to serve customers across Chicago with the level of care our family has practiced for decades,” says Gordon.

“For our team at Suburban Tire, Discount Tire’s culture and how it treats its people were an important part of our decision on the future.”

Last October, Discount Tire expanded its footprint in the Northeast with the acquisition of 25 Dunn Tire locations in New York and Pennsylvania. Those locations, which also offer auto repair service, continue to operate under the Dunn Tire banner.

Around the same time, Discount Tire acquired Ellisville, Tire & Service, a single-store dealership in Ellisville, Mo., which is part of the St. Louis metro area.

In total, Discount Tire has more than 1,200 locations throughout 39 states.

In addition to continuing to grow its physical footprint, the company has also made changes to its online business. In April, Discount Tire “officially sunset” Discount Tire Direct and began directing all of its online shoppers to Tire Rack, which the retailer’s parent company acquired in 2021.

Since that acquisition, Discount Tire said it has “been working to combine the best” of both online platforms. Discount Tire Direct previously served as an online portal for customers who didn’t live near one of the company’s retail stores. They could also shop for tires and wheels online and then schedule installation at their local Discount Tire or America’s Tire store. Now, shoppers can do that on TireRack.com. Consumers can also still elect to opt for installation at other installers around the country.

MTD May 2024

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COMMAND ANY ROAD FROM CITY HIGHWAYS TO TOUGH TERRAINS

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Industry News

Bites TGI enhances warranty Tire Group International LLC has enhanced the Cosmo brand’s mileage warranty and road hazard programs.

The enhancements cover all passenger and light truck products currently offered. Forthcoming products will be included in the expanded mileage and road hazard program, as well.

Huayi promotes Vetter Huayi Tire Canada Inc., Canada’s distributor of Double Coin and associate brand TBR and OTR tires, has named Robert Vetter vice president of sales for eastern Canada. In his new role, Vetter, who has more than four decades of tire industry experience, will oversee the company’s operations.

AACF seeks funds The Automotive Aftermarket Charitable Foundation (AACF) announced the launch of its 65th anniversary fundraising initiative. Through July 1, the campaign aims to raise $65,000 through 1,000 donations of $65 each. AACF has helped industry professionals and their families during crisis situations.

Nexen pairs with Padres Nexen Tire Americas Inc. announced a multi-year partnership with the Major League Baseball team the San Diego Padres for the 2024-2027 seasons.

As the Padres’ exclusive tire partner, Nexen will be featured on a variety of marketing assets including digitally enhanced billboards, in-ballpark branding, mound signage and more at Petco Park stadium.

Latin Expo returns The Latin Tyre & Auto Parts Expo will take place July 31-Aug. 2 in Panama. It will feature almost 600 exhibitors and buyers from South America, Central America and the Caribbean.

Prinx teams with USL Prinx Chengshan Tire North America Inc. has signed a multi-year sponsorship with the United Soccer League to serve as the league’s first Official Tire Partner.

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CTDA unveils Buylocaltires website

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he California Tire Dealers Association (CTDA) has officially launched BuyLocalTires.com, a public-facing website that will allow consumers to search for tire dealers by distance from a given address, city or dealer name.

TireTutor powers the website, which provides consumers with real-time tire inventory and the ability to purchase tires from dealer inventory. Consumers can also schedule installation appointments through the site.

“Providing a means to drive customers to our members has been something that CTDA has envisioned for quite some time and TireTutor has been the perfect partner to help accomplish that goal,” says Marc Connerly, executive director, CTDA. “We hope that one day, BuyLocalTires.com will be as much of a household name as similar aggregator sites in the travel, home improvement and other industries.”

All CTDA members are listed on the site for free, with the opportunity to upgrade the features of their listing through the purchase of enhanced listing packages offered

by TireTutor.

CTDA also is offering non-members a complimentary one-year limited membership to be displayed on the site with no out-of-pocket expense.

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Jon Zurcher joins K&M Tire

&M Tire Inc. has named Jon Zurcher its new executive vice president. Zurcher most recently served as chief operating officer (COO) of Best-One Tire.

“In his new role, Zurcher will play a crucial part in working with the current K&M leadership team to strengthen and continue to build on the company’s strategic plans,” say K&M Tire officials.

“With a wealth of experience in the tire industry, Zurcher brings a dynamic and innovative approach to K&M Tire. His Zurcher will work proven track record of leadership and strategic vision will with the current K&M leadership undoubtedly be an asset.” team and serve K&M Tire President Cheryl Gossard says “K&M Tire is as the company’s excited to welcome Jon Zurcher to our executive team. His new executive vice extensive experience and commitment to continuous improve- president. ment makes him an excellent fit for this pivotal role as we Photo: MTD continue to evolve and pursue excellence in everything we do.”

“Throughout my career, I have admired K&M Tire’s commitment to consistency and obsession (with) quality,” says Zurcher, who served as COO of Best-One Tire for seven years and is the grandson of Best-One Tire founder Paul Zurcher.

“These carry through to the way K&M operates in every manner and are evident by the level of service K&M Tire provides to customers. I am honored to become a part of this team and look forward to making a positive impact to the already exceptionally ran company.”

K&M Tire officials say Zurcher’s transition comes “at a strategic time for K&M Tire as the company positions itself for future success, while exploring new opportunities in an ever-changing market.”

“I’m stepping out of my current role and will no longer be the COO of Best-One,” says Zurcher. “I’m stepping 110% into this new role as executive VP for K&M Tire, so 100% of my time will be spent on K&M Tire, working for Cheryl Gossard.

“One of the things that excited me most about this is being able to work underneath Cheryl. I’ve admired for years how Cheryl has operated K&M. I’m going to be coming in as a student, learning the way K&M is doing things today and... with a set of fresh eyes, looking for ways to get better. How can we be better tomorrow than we were yesterday?

“I’ll have different responsibilities. One will relate to (K&M Tire’s) accounting department. A big part of my background within Best-One” centered around finance.

“From there, I’ll be working with K&M’s leadership team to help form (the company’s) strategic direction,” including “building capacity internally in everything we do.”

MTD May 2024

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Industry News

Bites Kumho goes drifting Kumho Tire USA is the official tire of the 2024 Formula Drift and sponsor of the Formula Drift Pro Championship. Kumho also announced it will partner with three drivers as official tire sponsors for the 2024 Formula Drift season. The drivers are Jeff Jones, Andy Hateley and Dean Kearney.

Speedco expands Love’s Travel Stops opened five new Speedco locations and completed upgrades to two existing shops. The new locations and upgrades added 23 service bays and 10 service trucks to the Love’s Total Truck Care network.

Hankook offers rebate Hankook Tire America Corp.’s Great Catch Rebate continues through July 7, 2024. Twelve of the company’s premium tire patterns headline the rebate and include all-season and high performance options. Drivers are eligible for up to $120 in savings.

T

ireHub LLC has launched its TireHub Plus program, which is a suite of tools and services for independent tire dealers.

“TireHub Plus is more than just a program — it’s a commitment to empowering our independent dealers,” says Curtis Brison, vice president of sales, marketing and strategic growth for TireHub, which is a joint venture between Goodyear Tire & Rubber Co. and Bridgestone Americas Inc. “We see TireHub as more than just a tire distributor for our customers. We are a true partner who keeps their business in mind. These dealers work tirelessly to serve their communities.

We want to enable their growth with meaningful contributions to their bottom line.”

According to TireHub officials, the new program offers several benefits to independent tire dealers, including: • purchase incentives to enhance profitability; • a road hazard warranty program; • digital solutions and marketing funds to win new business; • alternative customer financing and retail pricing tools; • a product screen tool that gives insights into local market dynamics; • dealer benchmarking tools, and; • training solutions that create and retain expert employees through mobile and online access to training materials.

“Our teams have always been devoted to providing dealers with premium products, industry-leading service and differentiated solutions,” continues Brison.

“Whether it’s protecting their investments, helping them to market their business or providing additional rewards and incentives, we want to demonstrate that TireHub is the best partner to meet any and all needs of our independent tire dealers.”

Giant Uniroyal tire turns 60 The giant Uniroyal tire on Interstate 94 outside of Detroit, Mich., is now 60 years old. At 80 feet tall, the tire, which weighs 12 tons, was built for the 1964-65 World’s Fair in New York City and later shipped by train to Michigan to stand outside Uniroyal’s former sales office in 1965.

TIA picks SEMA Show hotel The Tire Industry Association (TIA) has announced that Planet Hollywood Resort & Casino will be the host hotel for pre-SEMA Show events this year.

TIA’s pre-show events, including its annual membership meeting and cocktail reception, will take place on Nov. 4.

BendPak founder dies BendPak Inc. announced that Don Henthorn, the company’s founder and owner, died on March 28. He was 85.

In 2022, Henthorn transitioned the day-to-day management to the current leadership team. He served as chairman emeritus and continued to coach the team.

16

TireHub launches Plus program

P

Pomp’s builds coalition to fight trafficking

omp’s Tire Service Inc. is continuing its support of Truckers Against Trafficking, most recently hosting a half-day summit in its hometown of Green Bay, Wis., to bring other industry stakeholders together with law enforcement and government agencies to close loopholes to traffickers.

Truckers Against Trafficking, a nonprofit organization, calls these events “coalition builds,” with hopes that a The coalition build was group of company leaders and local officials will leverage held on the campus of Schneider’s headquarters. their networks to combat human trafficking.

Like Pomp’s Tire Service, Pomp’s Tire Service coordinated its first coalition Schneider calls Green Bay, build on March 12 in Green Bay alongside Schneider Wis., home.

National Inc., Kwik Trip, the Wisconsin Motor Carriers Photo: Jenn Koss Association and the Wisconsin State Patrol.

The event was held on the campus of Schneider’s corporate headquarters.

It included information on human trafficking prevention and awareness training, along with training resources for the trucking, truck stop, bus and energy industries.

Law enforcement participated in a panel and there was a survivor presentation.

Truckers Against Trafficking has held more than 80 coalition builds across the U.S. and Canada since 2012.

Pomp’s Tire Service has become an active supporter of Truckers Against Trafficking in recent years. The commercial tire dealership has added the organization’s safety message and logo to vehicles in its fleet. In 2023, the company hosted a public education Truckers Against Trafficking event at one of its locations in Denver, Colo.

MTD May 2024

T

EV owners share thoughts on tire brands

he J.D. Power 2024 U.S. Original Equipment Tire Customer Satisfaction Study shows electric vehicle (EV) owners are expecting the tires on EVs to last as long as they do on internal combustion vehicles, despite the heavier weight and higher torque of EVs. “The widening satisfaction gap between EVs and gas-powered vehicles highlight an opportunity for tire manufacturers and automakers to educate EV owners on the differences in performance,” says Ashley Edgar, senior director of benchmarking and alternative mobility, J.D. Power.

“Additionally, because of the conflict of maximizing vehicle range and optimizing tire wear for EVs, tire manufacturers and automakers need to work together to overcome the challenge, without completely sacrificing tire performance in other areas, especially as the EV market continues to increase.”

The expectations of those EV owners came to light during J.D. Power’s annual OE tire study. In that satisfaction study, the company ranked customer satisfaction of tires in four vehicle categories: luxury, passenger cars, performance sport and truck/utility.

The study measured tire owner satisfaction in four areas: tire ride, tire wear, tire traction/handling and tire appearance.

The 2024 study is based on responses from 31,414 owners of 2022 and 2023 model year vehicles. The responses were gathered from August through December 2023.

In three out of four categories, one tiremaker topped each list. In all categories, the tire brand’s score was based on a 1,000-point scale.

Luxury: In the luxury category, Michelin achieved the highest score with 834 points.

The segment average in the segment was 810 points and both Goodyear (812) and Continental (811) beat that figure. Bridge-

stone (803) and Pirelli (793) were below the average score.

Passenger car: In this broad category, four tiremakers beat or tied the segment average score of 797: Michelin (823), Goodyear (811), Kumho (799) and Bridgestone (797).

Eight additional brands made the rankings: Yokohama (793), Falken and Pirelli (787), Continental and Firestone (786), Hankook (785), Nexen (783) and Toyo (769).

Performance sport: This category had the fewest number of brands in its rankings.

Michelin (833) was the lone brand to beat the segment average score of 809, while Pirelli (798) and Goodyear (788) both followed.

Truck/utility: In this category, seven brands topped the segment average score of 781. Falken (818) earned the top spot, followed by BFGoodrich (812), Hankook (804), Michelin (802), Goodyear (789) and Bridgestone and Pirelli (783). Continental (765) and Firestone (725) followed the average score. ■

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17

NumbersThatCount

Relevant statistics from an industry in constant motion

44%

Increase in the number of EVs registered in the state of Vermont in the last year.

Source: Drive Electric Vermont Photo: General Motors

18

32%

Share of drivers who experienced a flat tire in the last year who said it was caused by a nail.

55%

Percentage of independent repair shops that don’t market their battery- or hybrid-electric vehicle services

Source: March 2024 Hankook Tire Gauge Index

Source: IMR Inc.

Photo: 509667448 | hrabar | gettyimages.com

Photo: MTD

SC

50%

Share of 2023 model year vehicles with advanced driver assistance systems (ADAS) Source: Consumer Reports Photo: MTD

20.2 MILLION

Number of medium truck tires in the 2023 replacement market Source: MTD Facts Issue Photo: MTD

B

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Yo u r M a r ket p l a ce

Will weakness today spur summer sales?

DEMAND FOR TIRES AND SERVICE FELL IN MARCH By

John Healy

R

etail sellout dropped 1.5% in March, the weakest number recorded so far in 2024 — following flat sellout trends in February and a slight decline of 0.4% in January. For the first quarter of the year, average sellout was down 0.6% year-over-year.

Only a few of our independent tire dealer contacts indicated positive trends in March, while several said both service and tire replacement trends were weak for the month. We believe the mild winter weather trends continue to put pressure on sellout trends. For a second year in a row, we haven't seen much of a weather-driven uptick in demand.

We note that a year ago, the spring and early summer months saw similarly weak demand and sellout trends. We’re of the view that these soft comparisons and the continued deferment by consumers of necessary automotive maintenance could drive positive sellout trends in the months ahead.

Miles driven data returned to positive territory in March 2024, following a negative turn in February. Our miles driven momentum index registered a 0.5% year-over-year increase, following a 1% decline in February. The early indicators for April might be misleading, given the early timing of Easter this year. The index showed a 3.9% decrease for the first week of April, but in 2023, Easter was on April 9, compared to March 31 this year.

We continue to believe the soft numbers from February were a result of severe weather in California, which kept drivers there off the roads. California accounts for almost 12% of all registered vehicles in the U.S. From our view, we see miles driven trends as largely OK at this point in 2024 and we believe the underlying trend represents a healthier backdrop compared to this same time a year ago for both tire replacement and the broader automotive aftermarket.

On the raw materials front, overall costs are rising. In February, those costs rose 1.4%, and in March they were up 6.7%. For the first quarter, we believe it equates to a 2.8% increase in the cost to build a basic replacement tire. Note that this follows a 3.4% decrease in costs during the fourth quarter of 2023. In the first quarter of this year, natural rubber prices climbed 29% year-over-year — due in large part to severe weather in southeast Asia. Oil prices were up 9.9% year-over-year in March due to a multitude of geopolitical factors.

In 2023, our raw material index fell 9.7% compared to 2022. And for 2024, we expect prices to remain largely stable moving forward. With a level of stability in raw material prices, healthier inventory levels compared to this time a year ago and still muted demand trends, we wonder if an incremental price concession could be on the horizon by manufacturers to reward tire dealers and distributors willing to restock.

Snapshot of Dealer’s PLT Tire Volumes (Year-Over-Year Change) Jan-23

Feb-23

Mar-23

Jan-24

Feb-24

Mar-24

Average

Increase

44%

40%

0%

40%

38%

43%

40%

Flat

12%

20%

29%

13%

29%

7%

26%

Decline

44%

40%

71%

47%

33%

50%

34%

Total

100%

100%

100%

100%

100%

100%

100%

SOURCE: NORTHCOAST RESEARCH ESTIMATES

20

WHAT DEALERS ARE REPORTING

Dealer commentary suggests consumer demand for passenger and light truck replacement tires was slightly negative on a net basis compared to March 2023.

A net 7% of independent tire dealer contacts experienced negative demand in March, a slight drop off from the 5% of contacts who saw positive demand in February.

Contacts recorded another month of positive demand for tier-one tire brands.

On the negative side, consumers continue to defer automotive maintenance.

This remains a consistent theme within our survey. One dealer noted that business as a whole was down and that there are days with few booked appointments. That same dealer said no-show appointments are up, as well.

Another dealer said business remained soft and both car counts and overall number of invoices are down year-over-year.

Our contacts indicate tier-one tire brands were the most in demand in March for the second consecutive month.

While tire dealers continue to talk about consumers trading down, it appears there are some shoppers willing to purchase premium brands. It remains a bit of a surprise, as tier-one brands had been the least popular products in the four final months of 2023.

We suspect tax refunds might have contributed to some consumers choosing premium tires.

As we look ahead, we note tier-two brands were the most in-demand products for half of 2023, and historically have been the most popular option in our 10-plus years of survey history. ■ John Healy is a managing director and research analyst with Northcoast Research Holdings LLC, based in Cleveland, Ohio. Healy covers a variety of subsectors of the automotive industry. If you would like to participate in the monthly dealer discussions, contact him at john.healy@ northcoastresearch.com.

MTD May 2024

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4/26/24 3:46 PM

EV tires

The forecast for EV tires GROWTH WILL FOLLOW EV ACCEPTANCE By

Photo: American Kenda Rubber Industries Co. Ltd.

Madison Gehring

A

ccording to the U.S. Department of Energy, annual sales of electric vehicles (EVs) more than quadrupled from 2020 to 2023.

What’s the forecast for EV-specific tires? A number of tire manufacturers, marketers and distributors offer their thoughts.

pay a premium for a tire designated as an EV-specific model. I am reminded of the aftermarket response to run-flat tires. In the end, consumers didn’t see the value and these remain niche products with very limited applications.

MTD: What’s your forecast for the EV tire segment’s growth over the next few years?

Brandon Stotsenburg, vice president, automotive division, American Kenda Rubber Industries Co. Ltd: Kenda sees several key trends in the North American market in the EV performance segment.

In 2023, approximately 10% of the new Class 1 and Class 2 vehicles sold in the U.S. were EV applications. Based on the recent news, original equipment manufacturers are continuing to forecast growth globally, but have tapered expectations for North American market acceptance and growth.

22

“Kenda currently has both a summer UHP — Vezda UHP MAX (pictured) and an all-season UHP — Vezda UHP A/S that are available and in the aftermarket for EV applications,” says Brandon Stotsenburg, vice president, automotive division, American Kenda Rubber Industries Co. Ltd.

“Atturo has taken the position that all of our tires may be suitable for use on an PH/EV type vehicle so long as they match the required load and speed ratings,” says Michael Mathis, president, Atturo Tire Corp.

Photo: Atturo Tire Corp.

Michael Mathis, president, Atturo Tire Corp.: Clearly, there will be growth in replacement tires sold for EV vehicles.

That is already happening. It remains to be seen if consumers really are willing to

Ian McKenney, senior product manager, Bridgestone Americas Inc.: As a society, we’re still very much in the early stages of the EV revolution. According to IHS Markit, new electric vehicle sales are projected to be 11% of vehicles in 2024, with that figure jumping to 28% in 2027.

However, projections might change slightly as manufacturers monitor macro trends in the industry and economy. A key objective for us is to help expand the appeal of EVs as an essential part of our effort to promote sustainable, low-carbon mobility.

Nate Dobbs, product manager, performance tires, Continental Tire the Americas LLC: Electric vehicle ownership will continue to grow, albeit at a slower MTD May 2024

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EV tires

Y “The Bridgestone Potenza Sport AS, which is our latest ultra-high performance tire with all-season performance, is a great option for EV owners who are looking for sportier handling,” says Ian McKenney, senior product manager, Bridgestone Americas Inc.

“The iON evo is specifically designed with summer performance in mind, as well, underscoring the opportunity to develop performance-level EV tires,” says Moonki Cho, product manager, Hankook Tire America Corp.

Photo: Bridgestone Americas Inc.

Photo: Hankook Tire America Corp.

pace compared to (what was) initially anticipated a few years ago. Continental’s stance maintains that our tires are already EV-ready today. We will continue to offer tires that are compatible on both internal combustion engine (ICE) vehicles and EV applications.

Michelle Baggetta, director of North American high performance category, strategy and planning, Goodyear Tire & Rubber Co.: Over the next few years, Goodyear anticipates that the EV tire segment will continue to grow while we balance consumers driving both ICE and EV vehicles on the roads.

Moonki Cho, product manager, Hankook Tire America Corp.: The EV tire segment growth trajectory is so reliant on the growth of EVs, in general, and as we have discovered in recent years, that’s challenging. There are many mixed messages around whether the segment will boom or not. However, as existing EV owners understand the benefits of leveraging EV-specific tire technology — along with new market opportunities showing promise, such as the greater electrification of SUVs and light trucks — it will provide additional opportunity.

Walter Chen, product planning specialist, Maxxis International – USA: As the automotive industry shifts toward electric vehicles due to emission regulations and sustainability concerns, the EV tire market shows promise. The need for specialized EV tires will continue to grow.

24

“The Continental ExtremeContact DWS06 PLUS and Continental ExtremeContact Sport 02 (pictured) are designed to fulfill both ICE and EV needs,” says Nate Dobbs, product manager, performance tires, Continental Tire the Americas LLC.

In May 2024, Goodyear Tire & Rubber Co. is releasing its Goodyear ElectricDrive 2, an all-season EV tire, says Michelle Baggetta, director of North American high performance category, strategy and planning, Goodyear.

Photo: Continental Tire the Americas LLC

Photo: Goodyear Tire & Rubber Co.

Jay Lee, product planning director, Nexen Tire America Inc.: The EV tire segment is expected to experience significant growth over the next few years as the adoption of EVs continues to increase worldwide. Several factors contribute to this forecast:

EV lineups. Th is expansion will drive the demand for a diverse range of EV-specific tires tailored to meet the specific needs of each vehicle.

Technological innovation. Tire manufacturers are continuously investing in research and development to enhance the performance, efficiency and durability of EV-specific tires. Advancements in materials, tread designs and manufacturing processes will contribute to the growth.

Regulatory environment. Governments around the world are implementing regulations and incentives to promote the adoption of EVs as part of efforts to reduce greenhouse gas emissions and combat climate change.

Rising EV sales. With advancements in technology, declining battery costs and increasing environmental concerns, the adoption of electric vehicles is expected to accelerate. As more consumers choose EVs, there will be a higher demand for tires specifically designed (for) electric vehicles.

Expansion of EV models. Many automotive manufacturers are expanding their

MTD May 2024

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EV tires These policies will increase demand for EV tires.

Infrastructure development. The expansion of charging infrastructure and improvements in battery technology are making electric vehicles more practical and convenient for consumers. As range anxiety decreases and charging options become more accessible, adoption of EVs is expected to rise, driving demand for EV tires.

Ian Coke, chief technical officer, Pirelli Tire North America Inc.: We’ve seen a slowdown in EV production, but not in the EV tire-related field. However, I am sure it will have a trickle-down effect. Everyone is coming out with EV-related products.

EVs are coming and there’s a little bit of hesitancy because of the cost of the tire and the vehicle and the lack of infrastructure around to support EVs.

“We believe that you want to optimize the performance of your vehicle, so you should have a specifically designed EV tire,” says Ian Coke, chief technical officer, Pirelli Tire North America.

“We are developing an EV-ready model for the Cosmo Tire line called the Cosmo Kurrent,” says Joaquin Gonzalez Jr., president of Tire Group International LLC.

Photo: Pirelli Tire North America

Photo: Tire Group International LLC

Ken Coltrane, vice president of marketing and product development, Prinx Chengshan Tire North America Inc.: Many manufacturers are cutting back on EV production. We will continue to monitor the market and listen to what our customers are asking us to develop.

Joaquin Gonzalez Jr., president, Tire Group International LLC: According to data I have seen, the EV tire market is set to more than triple in the next five years.

I don’t see anything to the contrary.

Chris Tolbert, director of sales, Trimax Tire: It’s too soon to tell. We are just a small tire brand that follows the trends of the bigger tire manufacturers, starting with a few sizes and gradually expanding.

Ryan Parszik, manager, product planning, Yokohama Tire Corp.: EV is a growing category. The news around EVs has been well-publicized, both in terms of OE manufacturer commitments, followed by near term public perception and the subsequent OE manufacturer response.

Regardless, there will be more EVs on the road every year. We believe that having a tire designed specifically for the category to exceed consumer needs has us wellpositioned to capitalize on the trend.

A representative from Zhongce Rubber Group Co. Ltd. (ZC Rubber) says the U.S. will be the second-largest EV market. ■

26

The Victra Sport EV is an ultra-highperformance summer tire designed to minimize rolling resistance, reduce noise and deliver other benefits, according to Walter Chen, product planning specialist, Maxxis International-USA. Photo: Maxxis International-USA

“The Yokohama Sport EV has a 55,000mile warranty on it and owners can expect particularly good wear from it,” says Ryan Parszik, manager, product planning, Yokohama Tire Corp.

Photo: Yokohama Tire Corp.

“Tires tailored specifically for electric vehicles will play a crucial role in supporting the continued growth and adoption of electric mobility,” says Jay Lee, product planning manager, Nexen Tire America Inc.

The Westlake Zuperace EV tire is an upcoming EV tire that ZC Rubber says it is planning to release soon.

Photo: Nexen Tire America Inc.

Photo: Zhongce Rubber Group Co. Ltd (ZC Rubber)

MTD May 2024

2404MT

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3/26/24 1:22 PM

EV tires

Insider insights

DEALERS SHARE STRATEGIES FOR SELLING EV TIRES By

Madison Gehring, Joy Kopcha

E

lectric vehicles (EVs) may make up a relatively small percentage of the overall vehicle population, but many tire dealers are seeing more of them.

One of those dealers is Joe Ramsay, CEO of Reformed Management Group, which operates eight stores on the west coast of Florida under two brands: JSN Auto Repair and Mickey Franklin Tire & Auto. Ramsay says his locations are “definitely seeing” more EVs. And he’s seeing more EVs around town.

“I went to dinner the other day and looked around in the parking lot and I think half of the vehicles were Teslas, so this is definitely a real trend.”

That said, EV owners are not the “top customers” at JSN Auto and Mickey Franklin Tire locations — at least right now.

Because of this, he says EV-specific tires are not widely stocked at all of his locations, though his stores in higher-income areas like Sarasota or Fort Myers do inventory more of them.

Ramsay’s stores also stock tires that haven’t been specifically designed and built for EV tires, but are EV-compatible, “so we can use them for other customers, too. We are trying to have the broadest reach.”

Usually, EV owners “aren’t buying a full set of tires,” he adds. “Eight out of 10 times, it’s just a tire replacement or repair. If someone were to order a full set of EV tires, those are usually special-ordered.”

However, when an EV driver comes into one of Ramsay’s locations, he says he and his sales team must be “more on their game.

Jim Sorum, vice president of Los Angeles, Calif.-based Fairmount Tire & Rubber Inc., says listening to the customer is his top tip when selling EV tires.

Photo: Fairmount Tire & Rubber Inc.

28

Joe Ramsay, CEO of Reformed Management Group, says EV customers tend to already have an idea of what they want when they come into a dealership.

Photo: Reformed Management Group

“EV tire customers have a higher likelihood of being the early adopters in this segment and they are a lot more interested in performance and focused on how many miles they’re getting on a charge.

“They are a lot more in-tune with their vehicle and the technology that it has, which makes them a much more informed customer.”

Ramsay says these customers tend to already have an idea of what they want, compared to other tire customers who rely more on a salesperson’s recommendations.

“No matter what, the customer must see you as an expert.

You need to be prepared to have an intelligent conversation about a specific tire versus (another) brand or line of tires.”

LOOKING FOR THE ‘QUIETEST RIDE POSSIBLE’

Jim Sorum is the vice president of Los Angeles, Calif.-based Fairmount Tire & Rubber Inc., which has three retail stores and five wholesale locations across California.

Sorum says Fairmount Tire has an advantage because he and the dealership’s president both drive EVs. “We’re also in a unique area being in southern California,” says Sorum. (One in four new cars sold in California last year were zero-emission, according to a recent report from the office of California Gov. Gavin Newsom.)

Fairmount Tire has adapted by making sure it stocks tires with the right sizes, speed ratings and load ratings that EVs require.

“EV’s are a different animal, so we stock and carry EV-specific tires.”

He says a customer who owns an internal combustion enginepowered Toyota Corolla, for example, may not be as focused on tire performance as an EV owner.

“An EV owner notices everything,” says Sorum, who adds that EV owners will be more aware of weight distribution, while paying closer attention to the load rating because the weight of EVs can drastically shorten the life of a tire.

“We’re hyper-focused on the tire and we’re also trying to educate ourselves,” he notes.

When it comes to selling tires to EV owners, Sorum says tactics don’t stray too far from normal techniques.

“When you get a customer, you’re still going to want to ask them what their driving habits are, what their pain points are and what they are specifically looking for in a tire.”

He says finding out what kind of driver they are helps with the sale because some customers who aren’t planning to keep their vehicle for a long time will be looking for a more economical replacement.

Other customers may say they drive a lot, so they are looking for a tire that provides a high level of comfort.

MTD May 2024

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EV tires “As a tire dealer, you’re looking at all these things and then you’re trying to find out what their budget is. EVs are a little different because these customers are often in-tune with their vehicle and the ride and experience they want.

“We continually hear that EV customers want the most mileage they can get and 90% of EV owners I talk to say they want the quietest ride possible.”

Sorum says he equates an EV customer to a high-end, European high-performance vehicle owner in terms of their expectations.

“Ask them (to list) the top two things they are looking for in their tires,” he says.

When it comes to general EV growth, Sorum says that the current infrastructure supporting EVs will be the greatest hindrance to the segment’s expansion.

“In our area of southern California, which is a little ahead of the curve, I think EVs will continue to grow. But across the nation, I don’t think it’s going to grow nearly as fast as people think because of the lack of infrastructure.

“I bought my EV in February 2022 and when I first started going to EV charging stations, I was the only one there.

“Now when I go to that same charging station, there are usually four cars utilizing the charging ports and six cars in line. So there is a lot more demand.”

FILLING THE ROLE OF EDUCATOR

While some tire dealers are just getting into EV tire sales and service, Steve Dupoise and his team at County Tire Center Hybrid EV in Middlebury, Vt., have more than a decade of hybrid and EV service under their belts.

It all began in 2013 when one of Dupoise’s technicians admitted he was bored and in need of a new challenge. Dupoise found a hybrid vehicle training center and sent that technician to school and the tire dealership then “dove in.”

To service the many Toyota Prius’ in the local market, County Tire Center Hybrid EV also invested in the purchase of Toyota software.

Over time, it was just natural to add EVs to the mix.

The dealership has secured access to Tesla parts and will start advertising that it offers Tesla service. (Tesla recently opened a dealership 50 miles away from his business.)

County Tire Center Hybrid EV’s current roster of technicians includes two who are Tesla-qualified and a third who is a hybrid-EV technician. They aren’t removing EV batteries from vehicles but they do perform plenty of tire and brake service in the dealership’s 10 service bays, says Dupoise.

Some EV owners expect to “save a ton of money in fuel,” but don’t realize some of those savings need to be reinvested in other repairs, including new tire purchases. So County Tire Center Hybrid EV has filled the role of educator at times.

“That’s the nature of an EV,” says Dupoise.

“An EV is a heavy car, so when you’re selling EV tires, you want to make sure you sell the right load index to help take the weight.”

Over time, Dupoise and his team have honed their tire recommendations for hybrid and electric models. They’ve also learned to tailor suggestions and conversations to the driver.

“If you have a heavy foot and you go buy an EV, you might be especially surprised of how quickly you’re wearing through those tires.”

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Due to this quick churn, Dupoise said some customers aren’t interested in spending money on premium tire brands at replacement.

Others are more open to investing in aftermarket parts that have been designed to offset the rear camber and ultimately help prevent immature inner tire wear. But Dupoise admits “it’s not a cheap venture to fix that.”

Steve Dupoise, owner of County Tire Center Hybrid EV in Middlebury, Vt., says it’s important to make sure customers understand the specifics of the tires already on their EV. Photo: County Tire Center Hybrid EV

One Tesla customer wasn’t happy with his original set of tires, so in the fall he opted for a set of winter tires.

Dupoise says that by springtime, those tires were showing wear on the inner edge, so rather than swap them for a summer or all-season tire, the customer opted to “burn them off for the summer” before investing in another all-season set.

“The big thing is trying to educate the customer on what they’re driving and what needs to be fixed.”

Reminding customers of the importance of regular tire rotations is another important task. He’s also learned to ask customers what research they’ve already done before arriving at the sales counter.

Some customers come armed with lots of information. Others might need more time to study additional options.

“You always want to make sure you don’t upset the customer.

You’ve got to be really careful about how you discuss it with your customers. Somebody who is really passionate about their EV is going to know way more than I do because I work on a number of different brands of EVs,” and a passionate consumer is likely to dive deep into the details of their particular make and model.

Over the years, Dupoise has learned to educate customers to the best of his ability. He recommends checking the transmission fluid in the Toyota Prius every 30,000 miles, among other preventive maintenance services. (As time goes on, the fluid removes the coating off the wires, says Dupoise.)

Just like County Tire Center Hybrid EV entered the hybrid and EV service space early, the company is now setting its sights on its next big service opportunity: advanced-driver assistance systems (ADAS).

He’s also working to open a second business that will offer automotive service and tires, with the added capability of ADAS calibrations and alignments.

“I’m trying to get ahead of the game, like we did with hybrids (and) EVs.” ■ MTD May 2024

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4/17/24 10:03 AM

Digital marketing

Maximizing your online presence EXPERT TIPS FOR EFFECTIVE WEBSITES By

Madison Gehring

I

n the dynamic landscape of modern marketing, the emergence of social media has revolutionized how businesses promote products and services. Yet amid the digital frenzy, website marketing remains a cornerstone for engaging customers.

In this era of connectivity, tire dealers are navigating the convergence of traditional web-based strategies and the ever-expanding realm of social platforms to captivate audiences and drive growth.

“As long as there is a need — a need for new tires, a need for an oil change, a need to service vehicles — you should consider your website (to be) your most knowledgeable and enthusiastic salesperson,” says Richard Clarke, co-founder and director of client services for Fifteen Degrees LLC, a New York City-based branding agency.

KEEPING IT SIMPLE

Clarke says websites don’t need to be complicated and tire dealers will see more success if they keep their sites simple. “We aren’t trying to solve the world’s problems with our websites,” he explains.

“Find the right wording for your messaging, which is basically just coming up with the right wording of what problem your company solves. People are coming to your website to find tires or to make their vehicles perform better. That’s it. So keep it simple.

Say your message once and say it clearly.”

Clarke emphasizes that tire dealerships should base their messaging on what he calls their “unfair advantage,” a concept that Fifteen Degrees assists its clients in identifying.

An unfair advantage is what sets your tire dealership apart from your competitors, he explains.

“A tire dealer’s unfair advantage springs from your brand’s DNA,” he says. “Many dealers have been in the business for years, so when asked what makes them different, they reply, ‘We have good people’ or ‘My business has been here for two generations.’

All of that sounds great, but the unfair advantage is more than that.”

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To find their unfair advantage, Clarke says it’s important for tire dealers to survey customers and ask why they came to their dealership.

What did the dealership do that the customer liked and what can the dealership do better?

“Understanding who you are through your customers’ eyes is your unfair advantage,” he notes.

“It could be something as simple as a counter rep greeting your customers before they step into the dealership, asking how they can help them today.

“It could be the service technician who has worked at your dealership for a long time and your customers trust him to service their vehicles.

“The goal is to find language to use in your brand messaging on your website that encourages action and engagement.

“If done right, it creates love for your dealership and increases your brand value with more business.”

Another way to enhance website efficiency is through social media marketing.

“A consistent and valuable social presence is a must,” he says.

Clarke highlights the distinction between social media and website marketing, noting that social media can drive traffic to websites.

“Website marketing is when people come to you and social media marketing is when you go to the customer and reach them at a time and place where they’re enjoying themselves,” says Clarke.

Social media is more for brand awareness, while a website is more audiencespecific, according to Clarke.

“Pick the channel — Facebook, Instagram, TikTok, Pinterest, whatever — and own it. Post consistently, but keep it interesting and look for ways to drive business.”

The last tool that Clarke says can be used to enhance a website is user experience technology, such as chatbots, which can be programmed to ask questions a tire dealer typically asks when facing a customer.

“According to a Google user study, customers visit an average of three websites before purchasing,” says Richard Clarke, co-founder and director of client services for Fifteen Degrees LLC, a New York City-based branding agency.

Photo: Fifteen Degrees LLC

“According to a Google user study, customers visit an average of three websites before purchasing. Another study shows more than 80% of web traffic is just (people who are) shopping price.

“A chatbot can help welcome them with a ‘Can I help you?’ message and can be programmed to say, ‘We have a special this week: buy three tires, get the fourth free. Can I help you find a few brands to consider?’”

JUST ANOTHER EMPLOYEE

“A website is really just an underpaid employee that’s doing all of the heavy lifting,” jokes Clarke.

However, he says it’s a good idea to have a professional in charge of a tire dealership’s website because it’s a “managed process.”

“You need someone who knows what they’re doing to set up your website correctly. They need to make sure your site’s talking to Google and all the other search engines, like Bing or Yahoo.”

Clarke says it’s also important for dealers to hold their website managers accountable.

“Performance means making sure that when someone in your area is looking for tires or tire services, your website comes up on that first search engine page,” he says.

“Getting on that first page is not that hard to do. You just have to hire the right people and make sure your messaging is clear, consistent and active.”

It’s crucial that whoever a tire dealer chooses to manage his or her website is keeping up with search engine optimization (SEO), making sure there are no broken links on the website or that there is no duplicate information, he says. ■ MTD May 2024

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4/12/24 10:05 AM

Auto service

Tips for summertime battery service

HEAT IS A MAJOR FACTOR IN LONGEVITY By

Joy Kopcha

A

s the season of summer heat draws near, it’s a good time to remember that vehicle batteries are taxed in any extreme environment and that makes it more likely vehicles will need battery service from your tire dealership in the coming months. We asked the battery service experts for tips to help tire dealers and technicians gear up for the summer season.

Jim O’Hara, executive vice president of merchandising, Clore Automotive Inc.: Batteries accept charge and provide discharge current differently based on temperature. That’s why it can be difficult to start a car in low temperatures, as the cold suppresses the total power capacity of a given lead acid battery. This is why all lead acid batteries have a lower cold cranking amps (CCA) rating — zero degrees — than cranking amps (CA) rating — 32 degrees. As a result, it is important to use charging equipment that incorporates temperature compensation in the charge routine.

This is also true for battery testing equipment, where battery temperature can impact the way a digital tester diagnoses a battery.

While it makes sense that battery chemistry is sensitive to temperature, one wouldn’t normally think the same was true for vehicle control modules, but it is. Most OEMs now recommend that the vehicle module temperature be no higher than 68 degrees. As such, it is often necessary to cool the vehicle down prior to programming, which can pose challenges during periods of extreme summer heat.

Periods of extreme heat or extreme cold can be difficult for any battery-containing product, including jump starters. This is true whether the jump starter is of the lead acid or lithium variety. We recommend increasing your charge frequency during periods of extreme temperature, though it may be necessary to allow the jump starter’s temperature to normalize a bit prior to commencing a charge sequence. If the jump starter is above 100 degrees, less than zero degrees for lead acid (or less than 32 degrees for lithium), allowing it to (normalize) to room temperature is a best practice.

Ross Lopez, sales manager of new business development who specializes in batteries for GMB North America Inc.: Every year it is a good idea to check a vehicle’s battery at least twice — during the extreme weather seasons (of) winter and summer.

Summer temperatures increase the temperature inside the engine bay and accelerate the onset of battery failure. Higher temperatures have a greater impact on the power-generating chemicals inside. Excessive heat causes the battery’s electrolyte fluid to evaporate, weakening the state of charge. This eventually leads to sulfation (crystals forming on the battery’s plates), which prevents the battery’s ability to recharge to full.

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Extreme temperatures are hard on batteries and that means testing batteries is a good service to provide for consumers as the summer heat approaches.

Photo: 521834477 | stewmangroup | gettyimages.com

Car batteries typically last three to five years, with southern regions seeing the shortest lifespan. Check the battery’s age. This can be done by locating the date code on the side of the battery.

There will be a sticker with a month and year indicating when the battery was manufactured. The rule of thumb (for replacement) is if the battery is over three years old and there’s been an issue starting the vehicle.

Inspect the battery. Since the electrolyte inside the battery contains sulfuric acid, be sure to wear personal protective equipment.

Vibration is one of the biggest factors when it comes to decreasing a battery’s life.

Make sure the battery is securely mounted into the compartment or tray. The less it shifts around, the better. Check that the terminals are tight enough not to twist around, and (that they are) free from cracks. Check the battery case for damage and wear.

Lastly, check for excessive corrosion, which will prevent the battery from receiving sufficient charge from the alternator. Clean the corrosion with a wire brush and add an anti-corrosive spray to slow its return.

Perform a load test. This is the best way to determine if a battery is about to fail. The test assesses its ability to hold voltage while in use. It simulates the load the engine uses to start the vehicle. A weaker result indicates the battery is likely to fail sooner than later, allowing you to replace it before it fails.

A digital load tester can provide data that will indicate its overall health. If the data says the battery is at 50% state of health, the unit should be replaced as soon as possible.

Nathan Gustafson, sales engineer at Midtronics Inc.: Summer heat causes more failures than winter. High temperatures adversely affect the electrolyte more than cold temperatures. So testing in the summer is just as important — if not more — than wintertime.

Ensure connections are clean of corrosion, properly tightened and show no signs of wear (frayed wires, etc.) High resistance in connections can affect both starting and charging circuits.

MTD May 2024

Pay attention to battery conditions for overheating and out-gassing vapors from the electrolyte. Hot underhood temps and deteriorated batteries from heat can lead to higher potential for batteries out gassing.

Charge in a well-ventilated area..

Haakan Light, training and development manager, Topdon USA: A pre-scan of the full vehicle upon initial arrival should be performed prior to any services on the 12-volt battery system.

Pay attention to repeat occurrences of “U codes” for communication stored in multiple modules and “battery voltage” related codes stored in multiple modules.

This may indicate a problem with the 12-volt vehicle electrical system.

Tips to help the consumer

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hile battery service and replacement may be inevitable, there are some things a consumer can do to help take care of the battery in his or her vehicle to make it last as long as possible.

Matt Laga, sales manager in the battery service tools category at Autel, offers these pointers, and suggests tire dealers pass them on to consumers.

“Extreme heat, or electric components putting a constant drain on the battery, can increase the number of sulfates.

This can accelerate sulfation and lead to battery failure.

“Heat can harm the battery even when you aren’t driving. Park in the shade or in a garage when possible.

“Keep the top of the battery clean. Dirt acts as a conductor and corrosion acts as an insulator, which can affect your electrical system as the battery alternately leaks energy and works harder to do its job.

“Before a trip, test the battery. Make sure the state of charge, state of health and remaining capacity are in good standing. Dirty or loose connections are common and can limit the flow of current.

“Avoid overcharging the battery; it can lower the lifespan.

“Drive the vehicle regularly to avoid discharge. Excessive short trips harm the battery life, while trips over 20 minutes allow for replenishment.”

Every battery should be tested twice on a service visit: Once on initial arrival. The battery should be recharged, then tested a second time.

All batteries should be tested with a carbon pile load tester in addition to a standard digital battery tester, like the Topdon BT600.

Temperature extremes have a major impact on a vehicle battery’s health.

Sustained high and low temperatures can accelerate battery failures.

Many modern vehicles require a new battery to be coded or “learned” after replacement. For this operation, a scan tool is required. ■

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4/24/24 8:29 AM

ADVERTORIAL

BLACKHAWK GOES ON THE ATTACK WITH NEW SUV, R/T TIRES

B

lackhawk, which offers a full lineup of tires for passenger, CUV, SUV and onand off-road light truck applications, is further expanding its range with two new, exciting products designed to help you capture more customers.

Manufactured at Blackhawk’s state-of-the-art facilities to the highest standard of excellence and infused w ith premium - qualit y Blackhawk technology, the new Blackhawk Agility SUV and Blackhawk Ridgecrawler R/T deliver maximum performance and value.

“The SUV market is the fastest-growing vehicle segment in the U.S., replacing both minivans and many sedans, so the time was perfect to develop an SUV-specific tire,” says Jack McClure, PLT segment manager, Blackhawk.

Encompassing a wide range of SKUs, the Blackhawk Agility SUV delivers optimal traction for confident handling across a variety of road surfaces, supreme comfort and enhanced service life — making it a superb allaround performer for discriminating SUV owners who want to maximize their vehicle’s capabilities without sacrificing the essentials.

Meanwhile, the new Blackhawk Ridgecrawler R/T addresses the exciting and ever-growing rugged-terrain light truck tire segment, according to

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Encompassing a wide range of SKUs, the Blackhawk Agility SUV delivers optimal traction for confi dent handling across a variety of road surfaces, plus supreme comfort and enhanced service life.

Photo: Blackhawk

The new Blackhawk Ridgecrawler R/T addresses the exciting and evergrowing rugged-terrain light truck tire segment.

Photo: Blackhawk

McClure. “An eye-catching product with all-weather, 3-Peak Mountain Snowflakecertified traction; a wide footprint; robust sidewalls; traction-enhancing sidewall

biters; and deep, 18/32 tread depth, the Blackhawk Ridgecrawler R/T can handle whatever nature throws its way, yet offers all the road manners required for the daily commute,” he says.

“When light truck and SUV owners go off -road, they want a tire that can safely, reliably take them anywhere, while overcoming every obstacle, yet also expect well-rounded performance on the highway. The Blackhawk Ridgecrawler

MTD May 2024

The Blackhawk HH11 all-season touring tire has been designed to deliver exceptional handling and allseason performance.

The Blackhawk HU02 is an ultra-high performance radial tire engineered for sport coupes and sedans.

The Blackhawk Ridgecrawler A/T is a premium, all-terrain tire engineered for pickup trucks and SUVs.

Photo: Blackhawk

Photo: Blackhawk

The Blackhawk Ridgecrawler A/T is a premium, all-terrain tire engineered for pickup trucks and SUVs. Featuring enhanced, 3-Peak Mountain Snowflakecertified traction with deep tread depth, the Blackhawk Ridgecrawler A/T delivers superior performance in various on- and off-road driving conditions.

Other features of the Blackhawk Ridgecrawler A/T include an optimized pitch sequence through Finite Element Analysis simulation software, which reduces resonance effects, contributing to a serene vehicle cabin; 3-Peak Mountain Snowflake certification; deep all-terrain tread lugs; and staggered shoulder tread blocks.

Benefitting from a broad tread footprint and reinforced shoulder support, the tire also promotes uniform pressure distribution, preventing irregular wear and extending overall tread life.

Recognized for its consistent reliability, the Blackhawk Ridgecrawler A/T is a trusted all-terrain tire, providing a quiet and comfortable driving experience.

The Blackhawk HH11 all-season touring tire is engineered to deliver exceptional handling and all-season performance. It features four wide circumferential grooves to help channel water away quickly and efficiently, delivering excellent wet weather traction.

A modern, non-directional tread design provides superior road feel and handling, making the Blackhawk HH11 “the perfect everyday tire,” according to Blackhawk officials.

Other features of the Blackhawk HH11 include a modern, non-directional allseason tread design; a variable pitch tread design for low noise; a silica compound for superior wet traction and reduced rolling resistance; a jointless bead cover; and higher sidewall turnup, which provides improved sidewall strength and durability.

The Blackhawk HU02 is an ultra-high performance radial tire engineered for high-performance sport coupes and sedans. The Blackhawk HU02 features a variable pitch tread design that provides a smooth, quiet ride, while its advanced tread compound delivers superior cornering and exceptional handling.

Additional features of the Blackhawk HU02 include an asymmetrical tread pattern; an inside tread pattern designed for water evacuation, which enhances wet traction; an outside tread pattern designed with larger contact areas, which improves dry traction; a silica compound, which reduces heat and provides improved wet traction and braking and reduced rolling resistance; a jointless bead cover; a rim protector and more. ■

Photo: Blackhawk

R/T has been engineered, manufactured and vigorously tested to deliver these sought-after performance benefits.”

Like all Blackhawk products, the new Blackhawk Agility SUV and Blackhawk Ridgecrawler R/T are exclusively available through the Tire Alliance Groupe (TAG), in both the wholesale and retail channels.

“Blackhawk is a top-notch tire that’s priced competitively, offering a broad, wide-ranging assortment of sizes and tread designs to meet the needs of every consumer,” says Paul Alves, president and CEO of TAG. “Blackhawk continually invests in the quality and range of its offerings to keep pace with the everchanging expectations of vehicle owners.

“We are excited to announce that more Blackhawk tires are in the works, including a new, ultra-high performance all-season tire, which will be available later in the year,” says Alves. “We can’t wait to discuss this new product, which will feature many popular staggered fitment options, in the coming months.”

The new Blackhawk Agility SUV and Blackhawk Ridgecrawler R/T further enhance Blackhawk’s complete range of passenger and light truck tires for every application, which includes the Ridgecrawler A/T, the HH11 all-season touring tire and the HU02 ultra-high performance radial.

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Tire Dealer Survival Guide

TIRE DEALER

S

SURVIVAL GUIDE

taying profitable in today’s tough environment requires first understanding who you are and the unique value proposition that your dealership offers.

It also means managing your employees more effectively, sharpening your team’s sales skills and preparing your business for the challenges and opportunities of tomorrow.

In this edition of MTD’s Tire Dealer Survival Guide, retail tire store management expert Dennis McCarron, a partner at Cardinal Brokers Inc., discusses some of the finer points of employee relations, including what to do on those occasions when, for the overall good of your business, you feel the need to have challenging conversations with the people who work for you.

What’s the long-term forecast for your dealership? Thinking of selling your business at some point?

Tire dealership mergers and acquisitions expert Michael McGregor, a partner at Focus Investment Banking LLC, discusses how to prepare your dealership for an eventual divestiture and how to keep your deal alive once engaged in the sale process.

Randy O’Connor, owner of D2D Development Group (Dealer to Dealer Development Group) discusses how to define the value your business delivers across several key metrics, including the fulfillment of customers’ expectations.

And Mike Townsend, retail tire sales coach and owner of Townsend Strategies, a tire dealership consultancy, shares tried-and-true techniques for connecting with customers in simple, yet effective ways to create a meaningful, memorable experience.

We hope you enjoy the 2024 edition of MTD’s Tire Dealer Survival Guide!

Photo: 505231744 | releon8211 | Gettyimages.com

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MTD May 2024

Tire Dealer Survival Guide

How to have challenging conversations with employees FINDING COMMON GROUND IS CRITICAL By

Dennis McCarron

When you notice things are better, give specific, reinforcing feedback.

Photo: 1206538223 | kali9 | gettyimages.com

W

ithout a doubt, you will at some point — and more likely, multiple times — have a challenging conversation with an employee.

A challenging conversation is one that’s usually held when expected behaviors or goals are not being met. This could be due to poor performance at doing an actual job or it could be about a glaring, negative behavior that is harming your business and the morale of your team.

Common examples would be an employee being routinely late, an adviw w w . M o d e r n T i r e D e a l e r. c o m

sor who doesn’t sell road hazards or an employee who complains about the work delegated to him or her.

The other piece of a challenging conversation is the concern that it will get ugly if tempers flare. And there could be concerns about employees quitting.

If you find yourself in a situation where a challenging conversation is needed, the worst thing you can do is nothing. Not only does the problem not get fixed, but employees will begin to take more liberties in not meeting expectations. Let’s take a look at the structure of a challenging conversation.

To begin, challenging conversations should always be a private manner, with no onlookers or people within earshot.

Additionally, you should have documents and a pattern of behaviors, not just onetime events. These behaviors need to be seen by you firsthand. If you only have second-hand information, you can put an employee “on notice” that there might be a problem and you will be monitoring it — or just start looking for the pattern.

With a pattern in hand, you can schedule a time to sit down with the employee.

You could say, “Come to my office in 10 minutes” or schedule it for another day.

Then you have to create your opening sentence. This is absolutely critical. The first sentence out of your mouth needs to be clear, concise and matter of fact.

The sentence also needs to start with the word “I.” Never start a challenging conversation with “you,” as this can be interpreted as being accusatory and will raise the flames of defensiveness. You already know there will be a little heat.

You don’t need to add gas to the fire.

The opening sentence also should have the structure of “I” plus “saw/ heard” — or any other first-person verb, like “witnessed” — plus the witnessed behavior. The second sentence could be a simple “Why?” or “Can you explain this to me?” This sets the entire tone of the conversation. It’s critical that this needs to be prepared in advance — even in writing in front of you when you begin the conversation. Once alone in a private setting, make your opening statement and ask for an explanation. And here’s the hard part: take anything you think you might know about the situation and block it out. You need to not make any assumptions about the situation. This part of the conversation is about listening

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Tire Dealer Survival Guide to their side of the story. Ask follow-up questions, ask for clarity and ask for evidence. Do not interrupt the person at all.

Interrupting or providing your side of the story here shuts down the other person.

They will begin to say less and worse, will just say whatever you want to hear to get out of the uncomfortable situation.

This also should be the longest part of the conversation. Allow the employee to think, which means you need to be comfortable with silence. Even if the employee says something you know is likely a lie, stay quiet. Write it down if you want, but your role here is to understand their side of the story.

Try to avoid closed-ended questions, as they are not good at collecting evidence.

Moreso, three closed-ended questions in a row feels like an interrogation, which reduces communication. A closed-ended question is one that can be answered in one to three words. Closed-ended questions belong at the end of the conversation, when you are simply correcting information. An example would be, “So you called the customer at 3 p.m.?”

Try to use open-ended questions.

Open-ended questions require an explanation. They cannot be answered in just a few words. If you ask a good open-ended question, but the employee tries to answer in just a few words, be silent. This silence tells the employee that his answer isn’t sufficient and he should keep talking. If the employee stalls, you can try what’s called a reflection, which is repeating back his own question. If the employee continues to stall, remind him of the importance of you collecting all the facts, so you can help solve the problem. Make it about the situation, not about him personally.

When you are confident you have all the information about the situation and you fully understand the employee’s side, you now have to summarize what he said.

This proves you listened, which will make him more likely to listen to you. Then find common ground. This establishes what beliefs or reasons you agree with.

Starting with common ground is extremely important as it establishes that you aren’t diametrically opposed to one another. As a matter of fact, you should state exactly that. Sometimes you have to dig deep to find agreement, but it’s worth the effort as it makes the disagreement much easier to talk about.

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At this point, your very next sentence should be, “I disagree” and state where and why you disagree.

This should create an exchange. If there is no dispute from the employee, you are getting an “easy yes,” which means the employee is uncomfortable enough to just say “yes” to get out of the discussion.

Never accept an “easy yes” as there is no commitment behind the sentence and therefore it will not lead to change. If you get an “easy yes,” challenge the employee to explain why he hasn’t been engaging in the proper behavior already.

Let’s sleep on where we are and come back to it tomorrow at 8 o’clock.”)

Now, whatever problem initiated the challenging conversation needs a plan — their plan, not yours. If you force a plan on a reluctant employee, it’s bound to fail. It’s their job. They need to own the plan and the outcome. Resist giving in to thinking, “This is taking too long, so I’m just going to tell them what to do.” If you think a few minutes waiting for an employee to formalize a plan is long, wait until you’re having the exact same conversation four times. You see, your plan might be the

‘A CHALLENGING CONVERSATION IS ONE THAT’S USUALLY HELD WHEN EXPECTED BEHAVIORS OR GOALS ARE NOT BEING MET.’ If there is clear disagreement, stick to the facts. Do not use “fire” words like “lazy” or “stupid.” Fire words not only increase the emotional load of the conversation, but they are also judgmental.

Laziness is not a behavior. It’s an accusation. Remember, the exchange is about clarifying facts one side thinks the other missed or misheard. It’s about connecting the employee’s motivation with his output. (“Tell me how not asking customers to get their alignment checked when buying tires is fair to them?”)

The exchange should mostly be you asking more questions about what the employee is trying to justify. This should be lively and a little tense. Let’s face it — you have a genuine disagreement. But it shouldn’t be stressful. You’re trying to solve a problem with the employee, not just scold them.

If you come to an agreement about moving forward, that’s a great outcome!

It doesn’t always happen, but it can if your employee generally wants to be productive and not be in trouble. If you reach a stalemate, that’s OK. You can only talk about a topic for so long. So take a break. (“Listen, I’m glad I understand your side better. We’ve been talking for 30 minutes.

perfect solution, but if there is zero buy-in, a 100% good plan multiplied by zero is zero. If the employee’s plan is only half as good as yours, well, 50% multiplied by 100% commitment is better than zero.

Finally, don’t get discouraged if your first few times trying this method doesn’t yield perfect results. This is a learned leadership skill that needs to be practiced.

Changing employee behaviors takes time and patience. You have to spend time exploring the employee’s side of the issue, pull a solution out of them and then you need to be the leader. When you notice things are better, give specific, reinforcing feedback, such as, “I noticed your alignment sales are up this week. Good job and thank you for trying!”

And support the employee. Always ask if the employee would like help. Maybe a little tweak to their schedule will help them concentrate on the job at hand?

Maybe they could use a spiff to help bump up sales? Whatever you do, avoid offering solutions. That’s their job. ■ Dennis McCarron is a partner at Cardinal Brokers Inc., one of the leading brokers in the tire and automotive industry (www.cardinalbrokers.com.) To contact McCarron, email him at dennis@cardinalbrokers.com.

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Tire Dealer Survival Guide

How to keep the deal alive when selling your business FOUR BIG MISTAKES TO AVOID By

Michael McGregor

When selling your business, be aggressive in generating revenue and producing profit. The easiest thing to do is to develop new sales and profit incentives that align with the results that your dealership’s buyer wants to see.

Photo: MTD

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s one gets older, the thought of death seems to come up more often. At least it does for me.

It’s not just the human deaths I find regrettable and tragic, but it’s company deaths, as well.

I have lived long enough to have seen huge projects that were initiated at the start of my career in the early 1980s rise and fall to their deaths decades later, including projects like Saturn, which was developed

by General Motors.

I first read in 1983 in the “Wall Street Journal” about how Saturn was going to revolutionize the car business.

Their first car came off the assembly line eight years later in 1991. The company grew and expanded into a full product line, but the credit squeeze of 2008 put them in the grave.

Likewise, the first Circuit City store I visited was in the early 1980s on a tire company business trip to North Caro-

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lina. That’s about the time Circuit City officially changed its company name and went public.

Like Saturn, Circuit City grew nationwide steadily, then peaked, circled the drain and died around 2009, when it was liquidated.

Smaller companies are no less vulnerable to extinction. Having less capital to weather tough economies, keep up with the competition, overcome bad decisions or embezzlement — it happens to tire dealers more often than you think — can kill a company fast.

Heck, stepping off a curb and getting hit by a bus can do the same when a business owner is the driving force behind the company. It can all fall apart if there’s no succession plan or if the next generation is not willing to step up.

So when a decision is made to exit, make it happen. Don’t waste everyone’s time with

a half-hearted effort. Go all out, but don’t make a dead deal.

That’s why I thought that avoiding the mistakes that cause dead deals makes a perfect topic for MTD’s Tire Dealer Survival Guide.

The best place to start is to understand why deals die. In a recent edition of my monthly MTD column, I reported some statistics from Axial’s “Dead Deal Report.”

A private deal network that covers the lower middle market in the United States and Canada, Axial investigated 47 transactions across a variety of industries. In each deal, a letter of intent to purchase a business was signed by both a buyer and seller. And in each situation, for some reason, the deal did not close.

Overall, 49% of the deals died for financial reasons and 51% died for non-financial reasons. Drilling down into specifics, 19% of the deals died because the transaction couldn’t get financed; 17% died because the quality of earnings report, which is typically funded by the buyer, came back with substantially lower EBITDA; and 12.8% of deals died because there was a “valuation misalignment” between a buyer and a seller.

Looking at non-financial reasons, 17.1%, of deals died because the “seller backed out.”

Another 17% of deals died for non-financial reasons discovered in due diligence. And the last category is the catch-all “other” at 17%.

The biggest thing to avoid when making any deal is to let the deal drag out. This a cardinal sin in my business. Too much time kills all deals.

One of the primary reasons for letting a deal drag out can often be traced to the lack of preparation by sellers before they enter the process. A recent survey of investment bankers on the Axial platform found that fewer than 25% of sellers are prepared to sell when they go to market.

MTD May 2024

From what I’ve seen, lack of preparation manifests in some of the following ways: • Lack of shop cleanliness and organization of financial statements; • No succession planning and nobody to perform the owner’s functions after the owner leaves; • Owners not understanding their own financial records, nor the condition of their assets and customer base; • Slow responses to buyer information requests, and; • Not having fair market rent on the property or properties involved in the business.

Letting your business turn down as you are in the market is the next big mistake. Buyers are skittish, particularly with businesses they are unfamiliar with. While strategic buyers may know your business better than financial buyers, both really don’t know your exact market or the peculiarities of how you operate your business.

They make an offer based on what your business has done over the last year, expecting that it will continue. If, as things progress, they start to see softness in your sales and profits, that will scare them. You can expect to have a discussion on this matter and you might see a haircut on the valuation, as well.

There is one very simple way to avoid this. Do not take your eye off the ball. Double down on being aggressive in generating revenue and producing profit. The easiest thing to do is to develop new sales and profit incentives that align with the results that buyers want to see. Don’t hide the incentives from your buyer. Be transparent about them. There is nothing at all wrong in doing this.

The third biggest mistake is a combination of issues that all result from a lack of familiarity with the exit process, but particularly during due diligence. There are so many things that go on in a business sale that there is no way for a seller to know what they are in advance. I always say the seller knows everything about his business, but nothing about the exit process. This lack of familiarity invariably results in the seller riding an emotional rollercoaster.

Frustration can often result over the numerous information requests and the never-ending questions that a seller can mistakenly take personally (“What? They don’t trust me?”)

A deep dive into the average working capital required in the business is often beyond a seller’s financial understanding. Nervousness from buyers about potential environmental issues, customer concentration, the likelihood of lease transfers and the 20 or so representations and warranties a seller will be required to sign are not things a seller thinks about every day, but will certainly have to reckon with.

Not understanding the need for a selling process can result in not going broad enough to comb the market for the best buyer.

This can lead to doubts at the closing table and backing out at the last minute (“Can I do better?”)

The combined weight of all these process issues once caused a seller I knew to be hospitalized with heart palpitations and shingles. The solution is to get good representation with a team that has done this before so they can talk you off the ledge every time you crawl out there.

Hiring experienced brokers or investment bankers who know your industry and attorneys who specialize in transactions can help. Certified public accountants are useless here other than for w w w . M o d e r n T i r e D e a l e r. c o m

tax planning. (To familiarize yourself on the process, I encourge you to read my book “Buy, Build, Fix, Sell.” It’s specifically written for tire dealers and available on Amazon.)

The last big mistake to avoid in deals has to do with misrepresenting and trying to hide things from a buyer. I find that the more open and transparent a seller is, the more relaxed the buyer will be. Being forthcoming and honest lowers the perceived risk a buyer has about your business. Being cagey, shading facts and misrepresenting do the opposite.

If you are going to stay on and be involved in the business after the sale and roll over some equity, it’s more likely that the buyer is going to do a background check on you.

If they discover stuff hidden in your background that relates to any sort of financial fraud or bankruptcy, they are going to think twice about being in business with you. So instead, build rapport with your buyer by being honest and transparent.

And if bad news comes up, disclose it fast and early and never try to hide it.

In one recent case, my tire dealer client lost a key store manager.

We reported it to the buyers right away, along with the countermeasure, and we simply promoted somebody better into that store manager position. Problem solved and the deal moved forward. ■ Michael McGregor is a partner at Focus Investment Banking LLC (focusbankers.com/automotive/tire-and-service). He advises and assists multi-location tire dealers on mergers and acquisitions. For more information, contact him at michael.mcgregor@focusbankers.com.

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Tire Dealer Survival Guide

How to define the value you deliver WHAT ARE YOUR STATED AND RECURRING POSITIONS? By

Randy O’Connor

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aise your hand if someone has ever suggested raising your rates because your dealership provides its customers with more value than the competition offers. Someone has!

(That’s what I thought.)

This also means someone probably convinced you to do one of any number of things you could have or should have done long before. Yes, the validation and encouragement we get when our colleagues help us take a step forward is awesome.

But just because we’ve been told or believe we offer more value than our competitors doesn’t mean that we actually do.

When’s the last time you sat down with others and had a discussion about your value? What does the word “value” mean to you, your customers, your employees and even your competitors? Isn’t delivering value what this is all about?

Do yourself a quick favor. When you’re done reading this entire article, take out a notepad and write “value =.” Take five minutes to jot down some notes as you brainstorm your interpretation of the definition.

Value is very different for most everyone.

And it’s not static. Value changes over time — maybe even minute to minute these days. If at the end of this exercise, we took what’s on your notepad and combined it with how others define value, we’d have a long and likely debatable list.

Sure, we could word-cloud the list and certain definitions would pop off the page, but we likely wouldn’t have a clear enough definition to capture the true spirit of the word. So if value is likely different for everyone, can we truly define it? And, can we quantify it? A formula to quantify your value and compare it to others? That would be a pretty awesome dashboard, wouldn’t it?

One of my favorite things to do is to solve something by isolating its variables.

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Some shops use labor guides to define the output of jobs while, yet others use their billable labor rate to define the output. Should that be the case?

Photo: Lexi Majoros

It’s a type of deductive logic that, at least in my mind, levels the playing field for a better understanding. Admittedly though, I’m biased. Conscientiously and logically approaching decisions is something I enjoy, especially in this case since we’re going to try our best to conscientiously apply logic and develop a formula for something that largely involves feeling and emotions. (By

the way, we do this constantly in our 20 Group meetings.)

When comparing one business to another, it’s essential to have a level playing field. That means we make sure all involved in a given discussion about value have defined and quantified the variables consistently. We remove the noise so we can have a clear and effective conversation.

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Tire Dealer Survival Guide When we stick to those guidelines time and again, the discussions get a little clearer or more valuable each and every time.

Setting the stage for productive and effective conversations, like those experienced in 20 Groups, is essential in most everything we do. If you’d like to see a good example of what happens in discussions when that stage hasn’t been set well, just open Facebook and scan the comments from your favorite industry rant chat.

How’s that discussion going?

Let’s use productivity as a metric. Productivity is output per hour. There should be zero room for misinterpretation, right?

Wrong. You see, our industry hasn’t levelset very well on some of the basics. Some shops use labor guides to define the output of jobs, while others use their billable labor rate to define the output. Should that be the case? I’ll leave that up to you to decide.

My point is the way we define things has a major impact on the discussions we have, especially when it comes to quantifying things that come from — and contribute to — behavior.

Let’s say your billable rate is $150 and you charge the customer $150 for a job that calls for 1.1 hours in your coveted labor guide. If the technician gets that job done in one hour, according to shops that use said labor guides’ definition of output, they would be said to be 110% productive.

In that same example, using dollars charged to define output, a tech having completed a $150 job in one hour when your billable rate is $150 would mean your productivity would be 100%, not 110%. To be 110% productive using this train of thought, we would have charged the customer $165 and completed the job in one hour.

There’s definitely a right and wrong way in these examples, but just imagine how many people in our industry have had endless, exhaustingly enthusiastic productivity discussions without defining key terms.

Sadly, without defining the formulas and/ or terms, those discussions were less than productive — and less valuable!

Let’s look at your value versus your competitor’s value. How should value be defined and what’s the right way to quantify it? Are you actually leveraging value or just talking value? Reality says we all pretty much sell the same stuff and do the same work, right? So if the key difference between you and the tire store down the block is value, shouldn’t you have a clear

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picture of what that means and exactly how much more or less value your shop provides than your competitor’s shop?

The answer is yes.

Let’s make some comparisons. Keep in mind, the definition won’t be perfect and the formula is likely even less so. Hang in there with me, though.

Some people define value as a position or a stance. But it’s more than that. It’s the way your stance is arranged and how it shows up in the customer’s journey. Our positions are the ones where we package our stance and put it in the market. So if we’re “bringing value to market” wouldn’t it be essential for us to effectively communicate our positions?

Communication, at its most basic, imparts something to someone, i.e. a deliverable. If we’re on the same page so far, we take our position, package it well, communicate it effectively and the word spreads.

For this discussion, let’s say value equals a well-packaged and communicated set of positions that fulfill a customer’s expectations. Let’s also say value equals a stated and consistently delivered business position that fulfills a customer’s expectations.

Let’s trim it back just a bit more. Can we get away with saying that value equals “I can and will deliver something you asked for — or need — on a consistent basis and you’ll come back?”

Did we just agree that it’s just that simple? I make a promise, you agree to that promise, I deliver that promise and you’ll be satisfied.

So how would you quantify that? Let’s discuss the variables first and see where we land.

The first part of the equation is stated position. I would say that your stated position — or your value proposition, if you will — is a set (or sets) of intentionally designed “things” we think people either do or should value. These intentionally designed things are placed in a certain part of the customer’s journey to make an intended impact. We generally feel like these are the things that make us more valuable. “We offer complimentary lifetime tire rotations with the purchase of one or more tires” is a simple example.

The second part of the equation is recurring position, which is taking those stated positions and delivering them in an efficient, timely and consistent matter. In the free rotation example, we might expect

that stated position to be discussed on the web, on the phone, on the invoice, in the warranty packet and in reminder texts/ emails. And we expect that our customers should be seeing and hearing about this position as much as possible. Any less and our recurring position loses some value.

Finally, the next component is fulfilled expectations. If we have a defined and valid set of value positions that are intentionally inserted at fixed points along the customer journey, with consistency, of course, we know we will be fulfilling at least some expectations. When you fulfill expectations, you take a large step toward getting customers back again and again. It’s called your retention rate. Let’s say you have 2,400 customers and you expect to see each of them twice a year.

If you see 1,200 of them twice or more, your retention rate is 50%.

Are your stated position, your recurring position and your fulfilled expectations measurable? Here are some examples.

Stated position. Can you quantify the number of times you hear your value position stated on the phone? Can you quantify how many people do or don’t see this on your invoices?

Recurring business position. Is your dealership’s value position driving people to your door as many times as you want? Is your value position driving new customers as readily as you want?

Fulfilled expectations. Internal reviews and Google reviews, which measure customer sentiment, are readily available.

You could also simply ask every customer as they cash out, “Is there anything we could have done to improve your experience?” Maybe you have a thumbs up/ thumbs down text delivered 15 minutes after service? You can measure this metric in several ways.

It’s almost time to start that list I mentioned earlier. I think at the end of this, regardless of how you craft this formula, value can be defined and quantified in its own unique way or ways. And remember that each is unique to you, your business and your customers. So make that list and pinpoint what value means to you. ■

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Tire and auto industry veteran Randy O’Connor is the Owner/ Principal of D2D Development Group (Dealer to Dealer Development Group.) He can be reached at randy@d2ddevelopmentgroup.com. For more information, please visit www. d2ddevelopmentgroup.com.

MTD May 2024

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Tire Dealer Survival Guide

How to connect with customers on the phone PROVEN TECHNIQUES TO CLOSE THE SALE By

Mike Townsend

It’s important for salespeople to be somewhat of a wordsmith, arranging their words in an order where they flow, sound professional and establish rapport.

Photo: Scott Galvan

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hen I was in a training meeting one evening with about 40 to 50 tire store owners and their wives, I asked the question, “When you are standing at the counter and you have one customer in front of you and the phone is ringing beside you, which one is the most important customer?”

Only five out of 50 had the right answer, with 45 saying, “The customer in front of you.” But five owners said, “The one on the phone that you don’t have in the store yet.”

Those five tire dealers were right.

If you know how to use great phone skills, you can ensure that every customer engagement is memorable, meaningful and measurable.

The only challenge is that many counter salespeople are so caught up in the

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whirlwind of running a busy tire store that they do not understand the value of a good process and they understand the value of using the right words at the right time and in the right place during every phone call even less.

And the right time is just as important as the right words. Most tire salespeople use silence and meaningless banter as they look up a tire price. So what does “using the right words” mean?

Using the right words in the right place is often not using any negative words until you have been on the phone with the prospect or customer for at least 30 seconds.

In my work, I’ve observed many tire retail salespeople as they’ve talked with customers on the phone. One thing I’ve discovered is that people who pick up the

phone and have a very positive greeting will convince people to buy more. Notice I did not say “sell more.” Why? Because today’s consumers will buy more if they do not feel like they are being sold something.

I’ll never forget being at one of my clients’ tire stores on February 14, Valentine’s Day, and hearing his greeting. I had already challenged that store’s salespeople the night before to be creative and not sound robotic when they answered the phone.

On this special day, I was standing at the counter with him when the phone rang.

He enthusiastically answered and said, “Nothing says ‘I love you’ like a new set of tires on Valentine’s Day from Rick Johnson Tire! My name is Alex. Who do I have the pleasure of speaking with today?”

I could literally hear the customer through his handset laughing and telling him how he had made her day and that she was heading down to the store to meet him and get some pricing on tires.

Was his greeting memorable? Absolutely!

Did it produce a buyer for his store? Of course, it did. And even though calls don’t all turn out like this, his greeting set the tone for the entire customer engagement.

To be able to give a customer a compelling reason to buy from you, it’s important that the phone call is memorable. Believe it or not, most tire store front counter salespeople answer the phone with, “ABC Tire.

Please hold.”

This is bad on many levels, including adding more work for the counter sales team. How? I’ve listened to hundreds of calls and at least seven out of 10 are calls that could have been deflected to another team member if the sales associate had engaged in a more effective way and determined the need for the call.

Determining the customer’s need helps decrease stress so both the customer MTD May 2024

in front of you and the customer on the phone have a better experience. If only the salesperson mentioned above would have slowed down with a proper greeting like, “Thank you for calling ABC Tire today. My name is Mike. Who do I have the pleasure of speaking with?” followed by getting the caller’s name and asking how he could help.

What would have been the next step after securing the caller’s name and determining the need? Asking for permission to put the customer on hold. Some salespeople think this process takes too long.

It takes less than 25 seconds!

But understand the customer’s need as soon as possible. If a salesperson puts a customer on hold and that customer waits for two to four minutes, only for the salesperson to find out the customer was only checking to see when their 2020 Honda Accord would be ready, more stress will be placed on the customer, as well as that salesperson and his teammates.

If your salespeople are uncomfortable putting a customer on hold, an appropriate response would be, “I will call you back in five minutes.” And then follow through.

That, too, can be memorable. I can guarantee that a three- to four-minute hold to answer a five- to 10-second question is not a good way to create a good experience.

Every customer interaction should also be meaningful. This is how the customer perceives the call. For a call to be meaningful, your salespeople must engage with the customer in one of three ways: as a trusted advisor, as a hero or as a companion.

The problem is that most salespeople answer the phone without a process that includes all three, even with regular customers. Imagine a technician trying to take off a wheel using an old lug wrench when they had access to a new impact wrench. A salesperson who uses words incorrectly or uses a poor or robotic greeting will cause — many times unintentionally — a customer to see them as unprofessional and therefore not connecting as a trusted advisor.

Being a hero to the customer, many times, is easier. But most of the calls I hear fail miserably at this. Here’s an example. A customer calls in with a flat tire and the sales associate immediately asks, “Do you know the tire size?” Wow! That salesperson just missed an opportunity to connect emotionally with a potential customer or a current customer. Why not say, “I’m sorry this has happened and messed up part of your day, w w w . M o d e r n T i r e D e a l e r. c o m

I will try to make things better for you from this point forward. Now, Mrs. Smith, would you happen to know your tire size?”

It’s not about selling something to the customer. It’s about connecting with the customer as a fellow human being who wants to help. This is how a salesperson can come across as a hero.

losing the impact of customer engagement. The fact that a customer calls your dealership is proof he or she wants to do business with you.

Don’t let a salesperson unintentionally talk them out of it. (When this happens, a customer will often say, ““I have to call a few more places before I make a decision.”)

‘THE FACT THAT A CUSTOMER CALLS YOUR DEALERSHIP IS PROOF THAT HE OR SHE WANTS TO DO BUSINESS WITH YOU. DON’T LET A SALESPERSON UNINTENTIONALLY TALK THEM OUT OF IT.’ How do you connect with a customer as a companion? This can be a tough one for your salespeople unless they have a good manager and/or a good support staff.

Many times, connecting can come in the form of doing something extra for a customer that costs you little or nothing, like walking a customer to their car and thanking them for their business as you remind them to come back for their tire rotations. It could be how you follow up to see how their car is doing after a major service.

Being a companion can be as simple as showing empathy. And when thinking about empathy, remember that the term includes the word “path.” Put yourself on that customer’s path.

Making a phone call memorable and meaningful can be measured by how your salesperson chooses his words. Even though this sounds easy, I can guarantee you it takes a dedicated individual to master the use of words on the phone. I compare words and compilations of words to the tools in a tool box. Imagine if one of your technicians came up to a car, raised the hood and then dumped all of his tools on the ground in front of the car. This is precisely what happens when a salesperson uses too many words or uses the wrong words at the wrong time or does not know how to fill silence on the phone.

Remember that using the wrong words is just as bad, if not worse, as a cause of

Many times, when a salesperson says things that could either be stated in a better or different way, the outcome is customer disengagement, whether it’s on a phone call or in person.

Your salespeople should also be wary of using words that imply the customer cannot be helped.

Tell the customer what you can do. Speak in definites: “I can order that tire. I can get you in tomorrow morning. We have several more economical options available.”

Salespeople who want to convert an everyday phone call into a memorable, meaningful experience should never use the words “we don’t” or “we can’t.” They should always make an “I can” statement, even if a higher price has to be mentioned.

And avoid “filler words” like “um” or ending a sentence with merely an “OK.” These also can prevent a memorable, meaningful experience from occurring.

At the end of the day, it’s important for salespeople — especially when working with busy consumers — to be somewhat of a wordsmith, arranging their words in an order where they flow, sound professional and establish rapport. And don’t forget to ask the customer to make a commitment. ■ Mike Townsend is the owner of Townsend Strategies, a sales and leadership training and marketing company that advises independent tire dealerships. To contact Townsend, email him at mike@townsendstrategies.com.

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Business Insight

How to get off the ground and keep going

PUTTING YOUR DEALERSHIP ON THE PATH TO SUCCESS By

Dennis McCarron

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ou finally get sick of working for someone else and decide to hang your own shingle as a tire dealership.

The idea of forgoing a guaranteed paycheck and earning every single cent as an entrepreneur is daunting. Most people don’t have the courage or fortitude to even try.

But you’ve made the move and are ready to go. Here is a stepby-step guide for putting your dealership on the path to success.

You’ve signed the lease, purchased equipment and hired employees. Now you’re ready for customers. Everything is about growing your customer base. Heavy advertising, customerfriendly pricing, local grassroots events, community involvement and taking on every and any job will be the keys to your success. At this point, it’s of critical importance to get your car count into the teens. At about 13 cars a day, you can expect to generate about $100,000 in sales and break even, but still get paid a modest salary. Sure, the process can be a little sloppy and mistakes will be made as you are making decisions by the seat of your pants. You are just starting to form what your business stands for. It’s a crazy time, but everyone involved likely has that sense of “do or die” and is committed to making the best of what is presented each and every day.

Now you need to increase your car count. It’s not OK to just break even. Getting car count up to about 20 vehicles a day is a must. This probably requires hiring additional staff. Understand, this staff was not present during the formative months of your dealership and will not have the same sense of urgency and dedication as the initial core ring of fighters. That’s OK and you need to understand that as your business grows, so does that separation from the core circle.

What’s next? Tightening up the processes. While stage one was mostly instinct, stage two needs rules. Establishing opening and closing procedures, writing them down and even having check sheets is a great idea. Customer greeting standards, as well as ticket life cycle — who writes it up, who asks for inspections, what kind of inspection is done, estimating tickets, advising rules and check-out procedures — all need to be carefully documented and explained to employees. As a matter of fact, make sure to include employees in developing these rules. The more they are involved, the more likely they will adhere to them.

At this point, your dealership should be generating a modest amount of money. Cash flow is still tight, but your business should be recording net profit with 20 cars a day. You need to be careful with buying the right amount of inventory and managing payroll expenses so you don’t have to borrow money to keep the business running. This is typically where a lot of businesses falter since the owner is generally good at selling tires or fixing

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cars — or both — but doesn’t have a lot of business savvy. This is a good stage to get into a reputable 20 Group or mentorship.

At this point, you should be focused on building a team that functions efficiently and at a decent emotional intelligence level.

Emotional intelligence is a fancy way of saying “no drama.”

That woodpecker you’ve been holding onto because “he’s good at fixing cars” or “he can sell his butt off” should now be on the chopping block.

Trust me. He needs to go. This employee is actually hurting your business.

‘You should have a process in place which allows you to comfortably rely on employees making very few mistakes, so you won’t be anchored to the sales counter or toolbox.’

If you let this employee stick around, your good employees — those who work efficiently and generally get along with others — will start to seek employment elsewhere. Good employees don’t tolerate poor working conditions. If you don’t release the bad employees and upgrade, you’ll be left with a shop full of woodpeckers and now you will want to quit.

After you’ve hit this level, your job is to protect the assets of your company: your employees and your stuff — including inventory and equipment. You should have a process in place that allows you to comfortably rely on employees making very few mistakes, so you won’t be anchored to the sales counter or toolbox. Sure, you’ll occasionally be doing the work of employees in situations like vacations or sick days, but it shouldn’t be a daily thing. While focusing on employee retention, you should be making sure your equipment is functioning correctly, the lighting in your shop is sufficient, your pay is fair and in line with the rest of the industry and your employees have the tools and abilities at the ready to do the job right.

Now it’s time to look for a second shop to open, but that’s a column for another day. ■ Dennis McCarron is a partner at Cardinal Brokers Inc., one of the leading brokers in the tire and automotive industry (www.cardinalbrokers.com.) To contact McCarron, email him at dennis@ cardinalbrokers.com.

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Mergers and Acquisitions

Best practices for mutual confidentiality agreements

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GUIDELINES TO PROTECT YOUR BUSINESS By

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Michael McGregor

t should seem evident that preserving confidentiality in a mergers and acquisition transaction is important to everyone involved, but particularly for the seller of a tire business.

It’s surprising how many people I run across who don’t have mutual confidentiality agreements or non-disclosure agreements (NDAs) in place when talking with a buyer.

I would think that not having your customers, employees or competitors knowing that a business is for sale would be the most important thing, followed by protecting all of your proprietary and confidential financial information. Not doing so recalls for me what one college professor of mine described as the definition of ignorance: “aggressive stupidity.”

There are some well-established market practices around transactions and the agreements that are used in them. It helps both sides to reach a reasonable final purchase agreement if they can agree to follow market practices or at least stay as reasonably close to them as possible.

‘I always say that the likelihood of getting a deal done is inversely related to the amount of time and effort it takes to get an NDA signed.’

A good practice is to not ask for off-market considerations, as long as the other party agrees to do the same.

It’s important to set the right dynamic upfront and to try and be balanced. If one party accepts some off-market things early on in an NDA negotiation, then they may be pressured to do the same on more important items in the purchase agreement.

Don’t think buyers aren’t concerned with confidentiality. They don’t want any of their confidential information being disclosed by you also. But they view these agreements more from the perspective of not getting hemmed in. Buyers are likely going to continue being in the business long after any sort of negotiation with you ends. They likely already know a lot about you, your customers, suppliers, buying prices and the like or they can find out about these things just by talking to a few people. So don’t expect to hold them accountable for keeping publicly known information secret.

And chances are they operate in — or have plans to operate in — many of the same market areas as you. They don’t want their right to do future business being restricted via any sort of agreement with you.

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Here are the typical clauses that we include in our mutual confidentiality agreements when we are representing a buyer looking to acquire a tire business. Note to sellers: understand that this is what I include when I’m on the other side of the table from you. If your particular buyer does not have these things in an NDA, ask them why: • definition of confidential information; • nondisclosure and use of confidential information; • destruction of confidential information upon request; • length of obligation; • no obligation to complete a transaction clause; • non-solicitation of customers or employees clause; • no restriction on current or future business operations, and; • miscellaneous provisions, including venue for disputes.

For initial discussions, I try to keep the NDA as short as possible so the other party can easily read and sign without having an attorney review it. If a longer one is needed, that can always be generated later.

With regards to length of obligation, asking someone to keep information confidential indefinitely is not a reasonable request.

NDAs have defined time periods and 18 months is the midpoint of what most all of the strategic and financial types we deal with are comfortable with. Some want 12 months and some are OK with 24 months. We’re good with anything in between.

Non-solicitation clauses in our NDAs say that a party will not use the confidential information to knowingly go after the other party’s business or customers or knowingly try to hire away employees that they meet or learn about as part of the discussions. Employees who apply on their own or through a general hiring solicitation are fair game. My opinion is if someone has a problem with non-solicitation, think twice about doing business with them. With regards to what jurisdiction or state laws should be followed, your “backyard” is not a neutral jurisdiction. That’s the principle behind using the state of Delaware, which is a pro-business venue, as so many businesses do. Best practice is to not give one party the advantage over the other, so we use Delaware in our agreements, both nationally and with international clients. I always say that the likelihood of getting a deal done is inversely related to the amount of time and effort it takes to get an NDA signed. If it's hard now with something as simple as an NDA, it won’t get easier later. ■

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

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4/16/24 9:01 AM

Dealer Development

Why maintaining your independence is important

NOBODY CAN TAKE CARE OF CUSTOMERS LIKE YOU By

I

Randy O’Connor

appreciate being in front of you all more today than any time in my entire career. We’re in an interesting time. The return to normalcy is about as close as we’re going to get for the moment, but it’s a new normal. The consistent month-over-month and year-over-year growth we’ve seen in the last two years has calmed. We have significant private equity consolidation and as much, if not more, manufacturer vertical integration happening at the same time. Our industry is volatile, to say the least.

The more you’re connected, the stronger you will be for tomorrow, when that local, personal relationship with the consumer becomes even more important.

Photo: Lexi Majoros

I’d like to think we all have an appreciation, as consumers, for a well-designed and meticulously executed, locally owned business. I’m not talking about just any locally owned business.

There are plenty of those. We like them, too. I’m talking about the ones that are absolutely and unquestionably different than the rest — the ones that engender us to forego a bit of convenience and price for a superior experience.

The experience when you arrive at these businesses matches what you’ve seen and heard. They’re communication aces. There’s a solid vibe from employees. You can simply feel the difference.

In short, these places are awesome. Their communities rave about them. And we gladly spend more money with these businesses than most other places. But it’s worth it. These businesses

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have earned and continue to earn our patronage because of their value proposition, both internal and external.

Let’s be honest, though. There are very few of these businesses out there. In order to keep customers in the independent dealer channel, our industry needs more of them.

What’s great about being independent is that we actually have a choice and a voice. It’s our voice to deliver a nicely packaged, professional service or not. It’s our choice to support others in that voice. The big box folks can’t deliver in the same way the independent can. That’s the choice they made with that business model. You have yours as an independent.

Your independent spirit drives and supports the communities you serve. You take your value proposition and stake it firmly in the ground so everyone knows you for not only the great service your business provides, but the relationships you have built and sustained over time.

This type of business that you operate — the independent business — is extremely important to our industry. It gives consumers a choice.

Every independent — small and large, old and young — exists to serve its community. You do that by creating a balance between an excellent place to buy and an excellent place to work. You sacrifice both ends to find balance and endure for the balance of community and profit.

It’s a symbiotic relationship that ultimately does more for the health of our communities than any big business ever will. We’re more affected by some things and less by others, but the choice to be community-based is not board of directors-based.

Don’t let this become a thing of the past. Get involved with your local technician training programs. Spend a few hundred bucks to be a member of your state’s tire dealer association. Network in your communities as a locally owned business. Find groups that meet in person — not to be confused with the the online groups you entertain and that entertain you. (There are some really solid tire dealer owner groups out there.)

Invest in technology and training. Invest in your teams. In other words, find your cutting edge and rise to the occasion. I’m not saying this with the end of your business in mind. I’m saying this with today and tomorrow in mind.

The more you’re connected, the stronger you will be for tomorrow when that local, personal relationship with the consumer becomes even more important. After all, being there for your communities is how this all started. ■ Tire and auto industry veteran Randy O’Connor is the Owner/Principal of D2D Development Group (Dealer to Dealer Development Group.) He can be reached at randy@d2ddevelopmentgroup.com. For more information, please visit www.d2ddevelopmentgroup.com.

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3/20/24 9:50 AM

EV Intelligence

The four stages of business growth WHAT STAGE ARE YOU IN TODAY? By

I

Craig Van Batenburg f you have been in the tire and auto repair business for any length of time, most likely you have gone through some stages of growth. Businesses have a life of their own. They start small and grow up, just like kids. Here’s a look at the four stage of business growth.

Stage one: excited. If you were a technician and started your own business, there is a start-up stage. It will last about five years. It is exciting. It is all you can do to go home at the end of the day. Weekends? No problem. Nights? Heck, eating dinner is optional. The company is growing and you are willing to do almost anything to keep it alive. If you get paid, all the better, but many months, all the money goes right back into your company.

Everything is a challenge, but that is what you wanted.

Life is great and you are exhausted, but it is a good exhaustion. Employees come and go and you learn how to manage someone else.

You seldom wonder why you started your business. You are so busy running the shop and doing everything yourself that you have no time to worry about anything. Oh, the newness of it all!

Stage two: serious. Your business is now somewhere between five and 10 years old. You might be married with kids. You have learned how to make money. You might have considered joining a trade association or hiring a coach. The business is starting to mature. It looks like a business, it smells like a business and you talk like a businessperson. You actually get paid every week!

Your overhead is high, but making the payments can be done if you have a plan and work it. Things usually go well for another five years. Life is good and you have a positive outlook.

You are getting into a routine. You are smarter, older, wiser and feel great about all the hard work. It is paying off and looks to get even better.

Stage three: complacent. Your business is 10 to 15 years old.

Your original dreams are fading as reality sets in. This is a time when the business has come into its own. Money is no longer a problem. You have procedures and policies. These were made based on learning from your past problems and poor decisions. You have learned how to delegate, though you really can’t let go completely.

The business is not your only interest. Life outside your store is really important to you. Problems within your business that take your time away from other parts of your life are starting to bother you. Resentment might be building.

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If you have done a reasonably good job during the first 10 years, life can now start to offer more than a paycheck, but at a cost of your time you no longer want to pay. As you approach the 15-year mark, you may ask, “What do I do with the rest of my life?” You realize that you are no longer young and some tough decisions must be made. “What do I do with my business?” You most likely keep these thoughts to yourself.

‘Businesses have a life of their own. They start small and grow up, just like kids.’

You may get more involved with your family or your community. You might buy another business and start over again, leaving someone else to run the shop. In some cases, you might resign yourself to this and say, “I guess this is the way it is going to be.” That is a bad road to go down. Your life can actually get depressing and you can feel lost. Owners in this position can be unhappy, angry, cynical people, but you can change that.

There can be joy in your life. It is in this stage your decisions are more critical than any other.

Stage four: change is coming. Some tire store owners never make it to this stage, but others do. Some owners get stuck in stage two or three, as mentioned earlier. When you can no longer put up with what owning a business demands of you, you may begin to complain. If this is true, you are probably having a business mid-life crisis.

You may become rude and dismissive. This is not who you were 15 years ago, and rightly so, you may be angry at yourself.

If your business is more than 15 years old and you feel stuck, talk it over with someone who knows how to listen. As many businesses become more about profit and less about humanity, a negative culture will remove the drive to succeed.

Your self-worth is not determined by whether or not you own a business. Is it time for a change? One last thing to remember: this cycle repeats itself every 15 years.

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

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3/14/24 4:09 PM

Focus on Dealers

Continental focuses on partnerships at Gold meeting

Continental Tire the Americas LLC says its Gold dealer program is essential to the company’s business and improvements to the program are made all year long.

Photo: MTD

WILL LAUNCH NEW TIRES, CONSOLIDATE LINES IN 2024 By

MTD staff

C

onsistency, partnership and listening to feedback from their customers was the overriding theme from Continental Tire the Americas LLC executives during the Continental Gold Dealer meeting in Cabo San Lucas, Mexico.

Chris Charity, vice president of sales, U.S. PLT replacement business, started the event by saying, “We really listen to a lot of feedback, whether it’s this week or throughout the year, and try to understand and incorporate how we go to market with the program or improving products or features and benefits.”

Continental’s Gold Dealer program currently has more than 4,000 rooftops represented by just under 3,000 owners, according to Charity. He said the program signed up roughly 200 new dealers during the past year.

The importance of the Gold Dealer program to Continental is critical and making improvements to it for the benefit of both the dealers and Continental is ongoing, he added.

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Charity said Continental is looking for the “right partners” when signing new dealers to the program. He said the company is intent on bringing the right balance of OE and replacement tires into its portfolio to bring value to its customers.

In looking at current, overall market conditions, Charity said the first quarter was stable and he looks for a modest one percent growth in overall business for PLT sales in the U.S. during 2024.

Ron Sinclair, director of sales and distribution, told dealers that the company does not have any company-owned stores “and so for us at Continental, it’s all about building the value proposition of our brands and our products and our program through our distributors to our dealers. If you don’t succeed, if you don’t grow, then we don’t grow.”

Sinclair said the company is looking at three main attributes for its partnership with dealers — communication, collaboration and commitment.

“As you think about the decisions you make every day, it’s all about ‘Am I

choosing the right partner? Who’s the right partner for me to grow my business — to pass my business along to my family and to grow it?’” said Sinclair.

He said Continental is constantly looking for feedback and communication from its dealers to improve its products and programs.

Travis Roffler, director of marketing, said that what Continental does is about perspective. “It drives what we all do and it’s in your business and it’s in our families and it drives what we do.”

That includes “how we do it and the perspective of this team is to provide world-class products for you to sell (and) to grow your business. Our marketing team works to drive consumers into your dealerships.”

NEW PRODUCTS ON THE WAY

Continental Tire the Americas LLC introduced several new tires during the meeting. The rollout of the new tire lines will take place throughout 2024.

MTD May 2024

At the same time, Andrew Hyland, product manager, said the company is consolidating lines for better inventory management for its dealers.

The Continental TrueContact Tour 54 will launch in August and will replace the TrueContact Tour and PureContact LS tire lines. The tire will come in 60 sizes, ranging from 15-inch to 20-inch wheel diameters and 40 to 65 aspect ratios. The Tand H-speed-rated tires carry an 80,000mile warranty, while the V-rated tires will come with a 70,000-mile warranty.

The TrueContact Tour 54 is targeted for the owners of premium sedans, coupes, minivans and CUVs, with an emphasis on long wear, plus confident grip in dry, wet, and wintry conditions, said Hyland.

He added that “in all our project development and product development, we incorporate internal combustion engine vehicles, EV vehicles and hybrids. We want to enforce and reinforce our message. Our TrueContact Tour 54 will be our first car tire U.S. replacement line that has an actual EV Ready EV logo on it.”

The main competitors for the TrueContact Tour 54 are the Michelin Defender 2, the Bridgestone Turanza QuietTrack, the Pirelli P7 AS Plus 3 and the Goodyear Assurance MaxLife, Hyland said.

The company is also launching its Continental VanContact A/S Ultra, a premium, all-weather tire for cargo vans.

Hyland said this tire is a global worldwide replacement tire.

It will come in three sizes and is targeted at the last-mile delivery customer and fleets of all sizes. The tire will carry the 3-Peak Mountain Snowflake designation and also features a “brick sidewall design for increased robustness against curbs,” said Hyland.

The final additions to Continental’s tire lineup will be the ProContact TX 10, a premium all-season touring tire with “sportier” performance; the ProContact GX, a luxury A/S balanced performance tire; and the ProContact RX, a luxury, all-season touring tire with an emphasis on dry and wet handling, said Hyland.

Turning to the General tire side, Hyland said the company is replacing its G-Max AS 05 and Grabber UHP lines with the G-Max AS 07. The tire is designed as an all-season ultra-high-performance tire for passenger cars, crossovers, light trucks and SUVs. It will come in 77 sizes. w w w . M o d e r n T i r e D e a l e r. c o m

Dawn Tilghman, the owner of Burnett White Tire Pros in Salsbury, Md., and Brad Bellacicco were among the 700 Continental Gold dealers who attended the 2024 trip.

Among the dealers at the event were Keith Slusher, left, of Liberty Tire and Auto Pros in North Carolina, and Diego Ramos, manager of M.I.C. Tires in Queens, N.Y.

Photo: MTD

Photo: MTD

Travis Roffler, left, and Chris Charity, right, were among the Continental Tire the Americas LLC executives who talked about the tiremaker’s plans for 2024 during the annual Gold dealer meeting.

Photo: MTD

The target customers are owners of muscle cars, sports cars, crossovers, SUVs and trucks that value performance in all seasons, said Hyland.

The final new tire line that was introduced is the General Grabber A/T Sport, an all-season, all-terrain tire for light trucks and SUVs, and the Grabber A/T Sport-W for the same vehicles, but carrying the 3-Peak Mountain Snowflake badge.

The Grabber A/T Sport will come in sizes for 17-inch and 18-inch wheel diameters, while the Grabber A/T Sport-W will come in 18-inch to 20-inch rim diameters.

MARKETING SUPPORT

Roffler said the company will continue its sponsorship of Major League Soccer (MLS) that started in 2020. The sponsorship is a cornerstone of the Continental brand.

It is due to expire in 2026, but Roffler says negotiations are ongoing to extend it indefinitely.

The reason Continental is excited about MLS is the league’s audience has grown

158% in the past three years, with recent interest driven by Lionel Messi joining the league. Apple TV has signed a contract to broadcast 535 MLS games next year. The league currently has 29 teams, with plans to expand to 32 teams by 2030.

Continental is the official tire of MLS, as well as with all 29 teams, which, according to Roffler, means no other tire company can have signage. He mentioned the numerous tire companies that have signage at Major League Baseball stadiums.

Roffler said the company’s research shows that while the Continental brand has 3% to 4% market share, among MLS fans who have attended an event and “been activated” with Continental’s on site hospitality and signage, that number stands at 30%.

The company also is continuing its sponsorship of NCAA College Basketball.

That will start with 13 different pre-season tournaments, ending with Conference Championships for the Big 10, Big East and Big 12 tournaments.

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Focus on Dealers

Big O Tires is building for success

EIGHT OUT OF 10 STORES REPORTED SALES GROWTH IN 2023 By

Madison Gehring

T

BC Corp.’s Big O Tires launched a new training program and more during its annual conference in New Orleans, La. Big O Tire dealers and partners gathered for a two-day event that featured a general session where sales growth and numbers were discussed, as well as a trade show with multiple exhibitors and breakout sessions to discuss upcoming dealer resources.

2023 GROWTH

Gary Skidmore, senior vice president and general manager for Big O Tires, took the stage at the general session and went over some 2023 Big O Tires franchise numbers.

“In 2023, we had average store sales of more than $2.7 million and total chain store sales over $1.28 billion dollars,” said Skidmore.

Retail sales were up more than 7% compared to the previous year and gross profit was up over 10%, he told attendees.

“More than 40% of our stores had a double-digit retail increase and 80% had an increase in sales in 2023. Both our daily average car count and tire units increased as our team serviced almost 3.9 million cars and sold almost 3.2 million tires.”

Switching gears to franchisee expansion, Skidmore said most growth within Big O Tires last year came from existing franchisees.

However, there were two new franchisees that joined — one in Snyder, Texas, and another in northern California.

Today, Big O Tires has roughly 470 locations and about 180 franchisees.

Patricia Del Aguila, vice president of market merchandising for Big O Tires, said that there is room for growth in tire

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“In 2023, we had average store sales of more than $2.7 million and total chain store sales over $1.28 billion dollars,” said Gary Skidmore, senior vice president and general manager for Big O Tires.

Photo: MTD

unit sales — specifically for the brand’s Big Foot A/T II and the Legacy All-Season Plus tires — both of which were originally released in 2022.

Last year, Big O Tire stores went from selling 250,000 units to 350,000 units of the Big Foot A/T II. For the Legacy AllSeason Plus, units sold during 2023 also went from 250,000 to 350,000.

The tires made up 17% of all tire units shipped to Big O locations last year and Del Aguila said Big O Tires wants to increase that to 20% in 2024.

She also revealed that Big O Tires is working with Nitto Tire U.S.A and Toyo Tire U.S.A. Corp., which manufactures the tires, on the development of 12 new Big Foot A/T II (Nitto) tire sizes and 16 new Legacy All-Season Plus (Toyo) tire sizes.

These sizes are set to be rolled out in 2025.

LISTENING TO FRANCHISEES

Big O Tires also showcased a new training program for its members.

Today’s Class rolled out last month and is a learning management system that can be used on a cellphone, laptop or tablet.

“It’s basically micro-learning, so it’s designed for today’s audience,” according to Skidmore.

“You can learn in small bursts instead of having to sit through a 40-minute class.

However, if you want to take longer classes, they’re certainly available.”

The classes can be tweaked based on

job position, so technicians and service writers will have questions tailored to their roles, he noted.

Darrell Jackson, senior manager of franchise learning and development for Big O Tires, said the program costs $150 per store, per month. With that fee, Big O Tires franchisees can sign up as many employees at their dealership as they want.

To help with this cost, Big O Tires will rebate franchisees $150 per month if their participation rate is over 30%.

Big O Tires’ partnership with Today’s Class came about in response to a 2022 franchise survey that Big O Tires officials sent out to members.

Once a Big O Tires franchisee pays for Today’s Class and registers employees, they can download the app, answer four questions per day and then move on.

After employees answer questions, they will receive the correct answers and other feedback.

This has created healthy competition in some of the pilot stores that have launched Today’s Class, said Jackson, who added that their employees share training scores at the beginning of each day.

In order to get Big O Tires members ready for the roll-out of Today’s Class, Big O Tires will hold 15 through the end of May. The webinars will focus on how to navigate the app.

Another initiative that Big O Tires is working on for its members is an updated MTD May 2024

point-of-sales (POS) system. Big O Tires has a contract with Tekmetric, an auto repair shop management soft ware company, and is working on releasing a new system soon.

“It is a POS system that’s developed with (Tekmetric’s) off-the-shelf version and then an enhanced version for Big O, so it will be a proprietary system just for Big O,” said Skidmore.

ROLLING FORWARD

“We have to make sure we have the right product in the right place,” Skidmore said during the conference.

He said one of Big O Tires’ strengths is the backing of TBC. “This gives us good products and good prices on those products. But we still have to make sure we have those products in stock” at the right distribution centers.

“Our stores are basically serviced out of 22 (distribution centers), so if we have all the products in the wrong (warehouse), it doesn’t matter how much of it you have. It has to

be at the correct distribution center and that has been our most ongoing challenge.”

Skidmore said that Big O Tires follows a dual growth plan: same-store growth and new store growth.

“We have a mix of our existing franchisees with single stores and we have large corporations.”

Skidmore explained that Big O Tires generally has 70% existing franchisee growth and 30% new franchisee growth.

When it comes to deciding where to expand, he said Big O Tires looks at three different types of markets.

The first is a market where Big O has a strong presence, but there are still pockets where locations could be added.

“This is our sweet spot because we already have a strong brand presence in our infi ll markets,” he said.

The next is adjacent markets.

“These markets have some Big O stores and some brand presence, but there’s still a lot of opportunity there,” continued Skidmore.

Finally, Big O Tires considers new markets that have similar demographics compared to where other Big O Tires stores are located, which would result in “us moving in and being successful in that market,” said Skidmore.

“As we drive increased sales, we also want to make sure our franchisees have the ability to pay their bills. So we want to make sure we focus on the growth profit of business so that they can be successful.”

RECOGNIZING INDIVIDUALS

During the conference’s general session, Big O Tires recognized three individuals with its Standing O Award and inducted a longtime Big O Tires franchisee, Scott Koldenhoven, into the Big O Tires Hall of Fame.

The Standing O Award recognizes franchisees and corporate associates for going above and beyond to support Big O Tires.

Winners of the award included Matt Story, Jose Perez and Jason Kassing.

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Products

Toyo announces Toyo M655 sizes Toyo Tire U.S.A. Corp. has announced new sizes for its Toyo M655 commercial light truck tire line. The M655 on- and off-road tires are engineered for mining, energy, construction and forestry use.

Each tire in the line carries the 3-Peak Mountain Snowflake certification. “The M655 is built for longevity with resistance to cuts and chips, sidewall impacts and irregular wear,” along with “specialized compounds,” according to Toyo officials.

Additional sizes will be introduced later this year.

TOYO TIRE U.S.A. CORP. www.toyotires.com

Transamerica adds to Venom Power line Transamerica Tire Co. Ltd. has released its Swampthing A/T tire under its Venom Power line. The maximum-traction, all-terrain tire is designed after the Trail Hunter ATX and Terra Hunter X/T tires. It is available in a 12-ply design and has a 55,000-mile limited treadwear warranty.

Features of the tire include a unique tread pattern to tame road noise; an aggressive dual-sidewall lug for an enhanced biting edge; and more.

TRANSAMERICA TIRE CO. LTD. www.venompowertires.com

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Pirelli expands Scorpion line Pirelli Tire North America Inc. has launched the Scorpion Zero AS Plus 3, a new ultra-high-performance tire for SUVs and light trucks. The Scorpion Zero AS Plus 3, which is manufactured in North America, joins the Pirelli P Zero AS Plus 3, an UHP all-season tire for premium-level cars; the Pirelli Scorpion AS Plus 3, an allseason tire for CUVs and SUVs; and the Pirelli P7 AS Plus 3, which targets coupes and sedans. The Scorpion AS Plus 3 is available in 24 sizes, fi tting wheels ranging from 19-inches to 22-inches in diameter.

PIRELLI TIRE NORTH AMERICA INC. www.pirelli.com

Omni United launches Radar winter tire Omni United (S) Pte. Ltd. has launched its new winter Radar brand tire, the Dimax Winter tire. The Dimax Winter features Double Cristal 3D sipes across its pattern for extreme grip and it contains Inari Silica compound for winter performance and low rolling resistance. It also features aqueduct grooves for evacuating water; connect support technology for full tread support; electric vehicle compatibility; and more.

The Dimax Winter will be available in 41 sizes, ranging from 14-inches to 20-inches.

OMNI UNITED (S) PTE. LTD. www.omni-united.com

Sentury rolls out Bandit light truck line Sentury Tire USA has launched the Bandit light truck tire line under its Delinte brand. The Bandit light truck tire line consists of the Bandit H/T, a highway-terrain tire; the Bandit R/T, a rough-terrain tire; the Bandit XT, a hybrid tire; the Bandit A/T, an all-terrain tire; and the Bandit M/T, a mud-terrain tire. The Bandit light truck tire line offers 50,000-mile to 55,000-mile mileage warranties and road hazard coverage.

Tires in the line have earned 3-Peak Mountain Snowfl ake certification.

SENTURY TIRE USA www.delintetires.com

Yokohama extends commercial tire sizes Yokohama Tire Corp. announced the size expansion for two of its commercial tires, the 124R and the 714R. The 124R, a longlasting, all-position radial tire for pickups and delivery fleets, has three new sizes — 225/70R19.5, 275/70R22.5 and 255/70R22.5.

This brings the total number of size offerings to 12. The 714R, engineered for urban pickup and delivery applications, is an openshoulder drive tire and available in one new size — 255/70R22.5. This brings the total number of sizes to four for this tire. Both size expansions carry 3-Peak Mountain Snowflake certification.

YOKOHAMA TIRE CORP. www.yokohamatire.com

MTD May 2024

Products

Nokian updates all-weather tire Nokian Tyres Inc. has launched a new all-weather tire, the Remedy WRG5, for North America. The tire will come in 70 sizes for wheels ranging from 15- to 20-inches. The Remedy WRG5 holds 3-Peak Mountain Snowfl ake certification. It has Aramid fibers infused in the sidewall of the tire and features pothole protection warranty. It was built for passenger, SUV and crossover vehicles. The new tire features an asymmetrical tread pattern for snow grip and uses snow claw blocks, snow boosters and dual performance siping in the traction zone.

It also has deep sipes throughout the tire and a center sipe with supporting edges.

NOKIAN TYRES INC. www.nokiantires.com

SRNA releases Falken WildPeak A/T4W

Goodyear expands RangeMax line

Sumitomo Rubber North America Inc. (SRNA) has unveiled its new Falken WildPeak A/T4W — a follow-up to the WildPeak A/T3W. The new tire features the 3-Peak Mountain Snowfl ake symbol and was engineered with full-depth sipes to provide long-lasting traction.

The A/T4W will be available in 96 sizes with wheel sizing available from 15- to 22-inches. The tire features staggered shoulder blocks; a proprietary three-ply Duraspec Sidewall Technology on select sizes; all-terrain confi dence and rugged durability; and more.

SUMITOMO RUBBER NORTH AMERICA INC. www.falkentire.com

Goodyear Tire & Rubber Co. has introduced two additions to its RangeMax line — the RangeMax RSA ULT and the RangeMax RTD ULT. The RangeMax RSA ULT is available in sizes 225/70R19.5 and 245/70R19.5. The tire features Goodyear’s Intellimax Technology that helps stiffen tread for long miles to removal; sawtooth shoulder groove designs; 3-Peak Mountain Snowflake certification; and more. The RangeMax RTD ULT is available in sizes 225/70R19.5 and 245/70R19.5. This new tire features a soybean oil tread compound; an open-shoulder tread design that provides traction; and several other components.

GOODYEAR TIRE & RUBBER CO. www.goodyear.com

Hankook updates winter tire line

ATD releases Hercules all-weather tire

Nitto unveils Motivo 365 all-season tire

Hankook Tire America Corp. has announced the latest update to its winter tire line with the Winter i*cept iZ3 tire.

The new tire is designed for compact and full-size sedans and provides improved performance on snow and ice. Its counterpart, the i*cept iZ3 X, is designed for the SUV segment. Other features include a new i*cept compound and pattern technology; a wider, V-shaped pattern with wider lateral grooves; and more.

HANKOOK TIRE AMERICA CORP. www.hankooktire.com

American Tire Distributors Inc. introduced its Hercules Terra Trac Cross-V AW, the brand’s first all-weather highway tire for CUVs, SUVs and light trucks. The Terra Trac Cross-V AW is 3-Peak Mountain Snowflake-certified and backed by the Hercules Performance Promise warranty of 65,000 miles. The line will encompass 39 sizes from 16- to 22-inches.

The tire has a 4% wider contact patch; a reinforced tread block; and more.

AMERICAN TIRE DISTRIBUTORS INC. www.herculestire.com

Nitto Tire U.S.A. Inc. has unveiled its 3-Peak Mountain Snowflake-certified, all-season tire, the Motivo 365. The tire has a unique, full silica compound that delivers traction and handling in all weather conditions, plus a 60,000-mile limited treadwear warranty. The broader outer tread blocks ensure traction and performance in summer and snow. The full line will include 69 sizes, ranging from 17- to 20-inch wheel diameters.

NITTO TIRE U.S.A. INC. www.nittotire.com

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TPMS

Lincoln Aviator - 2023 DESCRIPTION AND OPERATION

The BCM uses tire pressure sensors to monitor tire pressure. The IPC (instrument panel cluster) illuminates the TPMS warning indicator and the message center displays a message when a fault is present or when the tire pressure falls below the low limit.

The BCM records the unique identifier for each sensor and records the location of each sensor based on the training order.

The diagnostic scan tool is useful in diagnosing TPMS concerns and may be used to verify the accuracy of the tire pressure data transmitted by the TPMS sensors.

SENSOR ACTIVATION

• Turn the ignition switch to ON position.

• Position the tool against the left front tire sidewall at the tire valve stem.

• Press the test button on the tool to activate the sensor. Activate the sensor at least twice. Repeat these two steps for the remaining tires.

SENSOR LOCATION CALIBRATION

The TPMS can be placed into learn mode using a diagnostic scan tool or manually where a diagnostic scan tool is not available. The horn will sound once and the TPMS indicator will flash if the training mode has been entered successfully. If equipped, the message center will display TRAIN left front (LF) tire. Select Chassis / TPMS / Training Mode.

Enter Training Mode With IDS Scan Tool

Select Toolbox / BCM / BCM — TPMS Initialization.

Enter Training Mode Without Scan Tool

The horn will sound once and the TPMS indicator will flash if the training mode has been entered successfully. If equipped, the message center will display TRAIN left front (LF) tire.

• With the ignition OFF, press and release the brake pedal.

• Using the start/stop switch, position the ignition from OFF to RUN three times, ending in the RUN position.

• Press and release the brake pedal.

• Position the ignition to OFF position.

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• Using the start/stop switch, position the ignition from OFF to RUN three times, ending in the RUN position.

TPMS Sensor Training Procedure

It may take up to six seconds to activate a tire pressure sensor. During this time, the tool must remain in place at the valve stem.

• Place the tool on the left front (LF) tire sidewall at the valve stem. Press and release the test button. The horn will sound briefly to indicate the tire pressure sensor has been recognized by the BCM. • Within two minutes of the horn sounding, place the tool on the right front (RF) tire sidewall at the valve stem. Press and release the test button to train that sensor.

• Repeat this step for the right rear (RR) and left rear (LR) tires. When the training procedure is complete, the message center (if equipped) will display TIRE TRAINING COMPLETE. For vehicles not equipped with a message center, successful completion of the training procedure will be verified by positioning the ignition to OFF without the horn sounding. If the horn sounds twice when the ignition is positioned to OFF, the training procedure was not successful.

• Using the scan tool, locate the updated TPMS sensor identifiers trained to the BCM and document them on the applicable warranty claim.

• NOTE: This step is required to clear DTC B1182:55. Have the BCM exit the manufacturing mode to make sure there are no other concerns with a newly programmed BCM. If the sensors are being trained due to the installation of a new BCM, clear any DTC and carry out the BCM on-demand self test.

REMOVAL AND INSTALLATION Disassembly

Failure to follow the instructions may result in damage to the TPMS. The TPMS sensor is mounted to the valve stem. Removal of the valve stem requires demounting the tire from the wheel and removal of the TPMS sensor.

Use only the digital tire pressure gauge to be sure that accurate values are obtained.

1. Remove the wheel and tire.

2. Remove the valve stem core and fully deflate all air from the tire.

The valve stem is connected to the TPMS sensor. Do not pull the valve stem from the wheel, or damage to the sensor will occur.

If a new TPMS sensor is being installed, remove and discard the valve stem-tosensor screw and the sensor.

3. For a paddle-type tire machine, position the valve stem at the 12 o’clock or 6 o’clock position and the paddle at the 3 o’clock position. For a roller-type tire machine, align the valve stem with the roller at any position.

Do not allow the tire beads to move beyond the middle of the wheel when separating the beads from the wheels, as it may damage the TPMS sensor. Tire and valve stem position are critical to prevent damage to the TPMS sensor when using a paddle-type bead separator.

Some machines may have a nylon roller bead separator at the 12 o’clock position instead of the paddle-type bead separator at the 3 o’clock position.

4. Place the wheel and tire assembly on the turntable of the tire machine with the valve stem at the 11:30 position and the machine arm at the 12 o’clock position and demount the outer bead from the wheel.

Index-mark the valve stem and wheel weight positions on the tire.

5. Reset the wheel and tire assembly on the turntable of the tire machine with the valve stem at the 11:30 position and the machine arm at the 12 o’clock position and demount the inner bead from the wheel.

6. Remove and discard the TPMS sensorto-valve stem screw. Separate the TPMS sensor from the valve stem. (A new valve stem must be installed whenever a new tire or wheel is installed.)

7. Using a suitable valve stem remover/ installer, remove and discard the valve stem. Use care not to damage the wheel surface when removing the valve stem.

TORQUE SPECIFICATIONS DESCRIPTION

SPECIFICATION

Lug Nut

13 lb.in (1.5 Nm)

MTD May 2024

TPMS When installing a new wheel, always install a new valve stem and sensor screw.

Reuse the TPMS sensor from the previous wheel if possible. The TPMS will not have to be trained if the sensor is reused.

8. Position the new valve stem onto the TPMS sensor and install the new screw.

To prevent TPMS sensor and valve stem damage, the valve stem must be installed onto the TPMS sensor and then installed into the wheel as an assembly.

Assembly

1. Using a suitable valve stem installer, install the new valve stem and TPMS sensor assembly.

Pull the valve stem and sensor assembly through the wheel hole in a direction parallel to the valve stem hole axis. If it is pulled through at an angle, damage to the valve stem and sensor assembly may occur.

Use care not to damage the wheel surface. Lubricate the valve stem with soapy water and install the valve stem and sensor assembly into the wheel using a block of

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wood and suitable valve stem installer.

2. Position the wheel on the tire machine, then lubricate and position the bottom bead of the tire on the wheel. Lubricate the tire beads using a suitable fast-drying, corrosion-inhibiting tire bead lubricant.

Do not mount the tire at this time.

3. Position the wheel to align the valve stem with the machine arm at the 6 o’clock position and mount the bottom bead of the tire.

4. Reposition the wheel to align the valve stem with the machine arm at the 6 o’clock position and mount the top bead of the tire.

5. Inflate the tire to the pressure specified on the label on the driver door or pillar.

6. Follow the steps below only if the tire beads do not seat at the specified inflation pressure.

• Relubricate the tire bead and wheel bead seat area.

• Install a remote valve and pressure gauge.

• Wear eye and ear protection and stand a minimum of 12 feet away from the wheel and tire assembly.

• Inflate the tire using the remote valve and tire gauge until the beads have seated or until the pressure gauge is 20 psi more than maximum inflation pressure on tire sidewall. If beads have not seated, deflate the tire and proceed to the next step.

• Place the wheel and tire assembly in an OSHA-approved tire safety cage.

• Inflate the tire using the remote valve and pressure gauge until the beads have seated or until the pressure gauge is 40 psi more than maximum inflation pressure on the tire sidewall. Do not exceed 40 psi above the maximum pressure on tire sidewall. Install a new tire if the beads do not seat at this pressure.

7. Install the wheel and tire. ■ Information for this column comes from the tire pressure monitoring systems data in ProDemand, Mitchell 1’s auto repair information software for domestic and import vehicles.

Headquartered in San Diego, Mitchell 1 has provided quality repair information solutions to the automotive industry since 1918. For more information, visit www.mitchell1.com.

4/22/24 1:33 PM

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

1

V

ADVERTISER

PAGE

WEBSITE

ACDC

61

www.fixhybrid.com

American Omni Trading

25

www.americustire.com

Atturo Tires

5

www.atturo.com

Autel

45

www.autel.com

Bandit Tires

19

www.bandittires.com

Bartec TPMS

65

www.bartecusa.com

BKT USA Inc.

11

www.bkt-tires.com

Blackhawk Tire USA

13

www.blackhawktireusa.com

Bridgestone Tire

23

www.bridgestonetire.com

Continental Tire

15

www.continentaltire.com/promotion

DRC Tires

47

www.drc-tires.com

Hunter Engineering Company

17

www.hunter.com/revolution

K-Tool International

53

www.ktoolinternational.com

K&M Tire

33

www.kmtire.com

Kenda Tires USA

IBC

automotive.kendatire.com

Lexani Performance Tire

41

www.lexanitires.com

Linglong Americas Inc.

7

www.linglongtire.com

Maxxis Tires

31

www.maxxis.com

Nitto Tire U.S.A. Inc.

OBC

www.nittotire.com

Pirelli Tire

21

www.pirelli.com

Prinx Tires

35

www.prinxtireusa.com

Radar Tires

9

www.radartires.com/premium

Ranger Products

29, 55

www.rangerproducts.com

Sailun Tire Americas

36-37

www.gosailun.com

The per

Tireco Inc.

27

www.milestartires.com

•A

Transamerica Tire Company Ltd.

IFC

www.predatortires.com

• Fo a

WheelerShip LLC

43

www.wheelership.com

•C

Yokohama Tire

Front Cover Tip

www.yokohamatire.com

•P

ZC Rubber America Inc.

51

www.arisuntires.com

66

MTD May 2024

SNOW CER

2405MT

1 TIRE. 4 SEASONS. Vezda Touring 4S

The Vezda Touring 4S is a premium touring tire offering true 4-season performance in dry, wet, and light snow conditions.

• Asymmetric design to provide optimal traction in all conditions • Four large circumferential grooves provide superior hydroplaning and wet traction performance • Computer optimized pitch sequence for excellent noise and wear • Pattern sipe density maximized for winter performance

E AG

Y

T

W

60K

A

E

M

IL

SNOWFLAKE CERTIFIED

SCAN TO LEARN MORE

R R A N

ALL SEASON

2405MTD_KendaTires.indd 1

SNOW

DRY/TRACTION PERFORMANCE

WET/TRACTION PERFORMANCE

HIGH PERFORMANCE

LOW NOISE

TREAD WEAR

RIDE COMFORT

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