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USW seeks new tariffs on PLT tires ‘RENEWED SURGE IN IMPORTS’ VALUED AT $4.3 BILLION

The United Steelworkers (USW) union has filed anti-dumping and countervailing duty petitions targeting passenger vehicle and light truck tires made in South Korea, Taiwan, Thailand and Vietnam.

According to Modern Tire Dealer statistics, these four countries exported 85.3 million consumer tires to the United States in 2019, with more than half of that total coming from Thailand. The tires from those four countries accounted for 33% of all PLT tires shipped in the U.S. replacement market last year.

The USW says the value of the imported tires from these four countries has increased by 22.1% since 2017. The 71.1 million PLT tires imported from Korea, Taiwan, Thailand and Vietnam that year were worth $3.596 billion. By 2019, their value had increased to $4.391 billion.

The USW additionally filed a countervailing claim in the case of tires from Vietnam, alleging that tires made there and shipped to the U.S. are benefitting from government subsidies at home.

In a statement dated May 13, a day after the petitions were filed with the U.S. Department of Commerce, USW President Tom Conway said, “Even though demand for (passenger and light truck) tires increased, domestic producers were still forced to grapple with reduced market share, falling profits and lost jobs.”

If this feels like a repeat of the USW’s campaign that began in 2014 to impose tariffs on PLT tires from China, that is by design. The union’s attorneys cited the success of that case in the union’s latest petition, and noted that in the five years since those tariffs were imposed, Chinese tire imports “have since shrunk dramatically, allowing the domestic industry to invest in new capacity in the United States.”

That assertion about the fall of Chinese imports is true. According to MTD figures, in 2014 imports of Chinese-made PLT tires topped 60.5 million units.

That number has dropped 94% to 3.4 million in 2019, according to MTD’s 2020 Facts Issue.

But the tariffs on Chinese tires also prompted manufacturers and importers to move molds and production elsewhere — namely, to the countries now targeted by the new USW petition.

“The result has been a renewed surge in imports,” the union noted, “this time from Korea, Taiwan, Thailand and Vietnam.”

Among the figures the union points to is lessening market

Ranking in 2019 Country Imported PLT Tires 1. Thailand 45.1 million 2. South Korea 19.3 million 6. Vietnam 11.9 million 8. Taiwan 9.0 million

Total 85.3 million

If past tire tariff investigations are a guide, it will be at least a year until the USW’s latest petition is settled.

share of domestic tiremakers in what has been a growing industry. Its data shows that in 2017, imports from the four countries accounted for 24.4% of the U.S. passenger and light truck tire market. By 2019, that share had increased to 27.9%. Comparatively, the domestic industry lost market share in that time span, from 41.2% in 2017 to 40.5% in 2019.

The USW says it has a presence at five tire manufacturers’ U.S. factories: Cooper Tire & Rubber Co. (Findlay, Ohio, and Texarkana, Ark.); Goodyear Tire & Rubber Co. (Fayetteville, N.C., and Topeka, Kan.); Michelin North America Inc. (Tuscaloosa, Ala., and Fort Wayne, Ind.); Sumitomo Rubber North America (Tonawanda, N.Y.); and Yokohama Tire Corp. (Salem, Va.)

INDUSTRY REACTS

The Tire Industry Association (TIA) isn’t surprised that the USW has taken this action.

Roy Littlefield Jr., CEO of TIA, said, “The United Steelworkers petition seeking higher import duties on passenger and light truck tires from Korea, Thailand, Taiwan and Vietnam reflects how tire manufacturing has grown and evolved in these countries in recent years, with the addition of numerous factories from Chinese tiremakers and others.

“The union, in seeking anti-dumping and countervailing duties, is looking to preserve tire manufacturing jobs in the U.S., while tire retailers have found success selling products imported from these countries.

“It’s not surprising, therefore, to see this action taken by the USW.”

Most tiremakers contacted by Modern Tire Dealer declined to react to the USW petition. One exception was Peter Jung, senior vice president and chief operating officer at Hankook Tire America Corp.

When asked what action Hankook might take in response to the union’s recent petition, Jung said, “It’s difficult to say at the moment, as it’s still early in the stage and nothing has been decided. We will reorganize our global production portfolio and increase U.S. plant production to meet our U.S. stakeholder demands.” ■

Bites

TIA offers free training

The Tire Industry Association (TIA) is offering six weeks of free online training to passenger and light truck tire service technicians through the end of June. Dealers can sign up online.

Federal names president

Federal Corp. has promoted C.I. Chen to serve as the company’s president. A tire industry veteran with more than 30 years of experience, Chen most recently served as vice president of Federal.

Nebraskaland Tire picks Mam

Nebraskaland Tire Co. Inc. updated its point-of-sale system to the Vast system offered by Mam Software Inc. For the 46 locations doing business as Nebraskaland Tire, Kansasland Tire and Coloradoland Tire, it was their first POS system change in 25 years.

Hankook studies driving

Sixty-percent of respondents to Hankook Tire America Corp.’s latest Gauge Index survey say they will take more trips by car as a result of the COVID-19 pandemic. Three out of four respondents said they missed driving.

ZC Rubber extends warranty

Zhongce Rubber Group Co. Ltd. (ZC Rubber) is extending the warranty on its Westlake, Goodride, Chaoyang, Trazano and Yartu brand tires to five years on July 1. The warranty upgrade applies to all sizes of passenger, truck/bus radial and OTR tires the company manufactures.

Dealer does a good deed

Scott Highfill isn’t an expert in food distribution, but the western regional sales manager for Penn Tires, who previously owned Great Western Tire, says he wanted to support the food banks near him in California. Each week, he’s gathered food and money from neighbors and friends to give to a nearby church food pantry.

Nokian hires logistics leader

Nokian Tyres Inc. has hired Christy McDaniel to lead the company’s supply chain efforts in the Americas region. This is a new position for the tiremaker. McDaniel will manage the company’s logistics, supply chain and customer service divisions.

Virus isn’t stopping SEMA Show or AAPEX

Leaders of both the Specialty Equipment Market Association (SEMA) Show and Automotive Aftermarket Products Expo (AAPEX) say their 2020 events will go on as scheduled.

Nathan Ridnouer, vice president of SEMA councils and membership, told members of the Wheel and Tire Council on May 6 that the 2020 SEMA Show, scheduled for Nov. 3-6, will happen.

“When we all get to Las Vegas, it’s going to be a heck of a time for the industry to be excited about ending this crisis, but also jumping forward into the new year.”

In addition to the SEMA Show, the association also hosts the Performance Racing Industry (PRI) Trade Show in December in Indianapolis, which will go on as scheduled. “These events are well-positioned to help us as an industry turn around more SEMA says the SEMA Show routinely attracts more than 161,000 people to its combined 2.2 million square feet of indoor quickly. Also, it will be in alignment with and outdoor exhibit space. what the analysts are predicting — that there will be improvement in the fourth quarter of the year.

“One of the reasons we’re going out so strong is because companies are relying on SEMA and PRI to be a resource for the industry going forward, not only a resource for conducting business but for debuting new products and also connecting with buyers who really want to get out there and make a splash with their customers.”

Ridnouer acknowledged there is work to be done related to safety and security precautions before crowds descend on the Las Vegas Convention Center. In some ways, it will be similar to what the organization faced in 2017, when it had six weeks to enact new security measures after a mass shooting at the Mandalay Bay resort.

“The SEMA staff came together to make sure that we not only had a great SEMA Show, but a safe SEMA Show,” he said. Details of what exhibitors and show attendees can expect in terms of safety protocols likely won’t be publicized until closer to the event.

Ridnouer says around 2,000 companies have reserved their space for the 2020 SEMA Show, acknowledging that exhibitor registrations are down by 100 to 200 companies compared to a typical year. SEMA has also opened up attendee registration — albeit three weeks later than normal. “People are registering. They’re expecting a show, too.”

He said he couldn’t provide an estimate of expected attendance for 2020. “As we get into the summer time frame, we’ll get a better idea of how things are shaking out.”

THE UPDATE FROM AAPEX

AAPEX is co-hosted each year by the Auto Care Association and the Automotive Aftermarket Suppliers Association (AASA). The 2020 event is scheduled for Nov. 3-5.

Bill Hanvey, CEO and president of the Auto Care Association, and Phil McCarthy, president and chief operating officer at AASA, gave exhibitors an online update in May. Hanvey noted it was “a very fluid situation,” and said organizers are monitoring both federal and state mandates.

“Unless the State of Nevada or the federal government tell us otherwise, we are on with AAPEX and the AWDA conference,” Hanvey said. (The Automotive Warehouse Distributors Association meets in Las Vegas in the days before the opening of AAPEX.) “If we do have to cancel, it would only be because of a government mandate.”

McCarthy stressed “the most important thing is that our attendees’ health and safety is our primary concern. Whatever steps we take will be in line with what is recommended and best practices.” –Joy Kopcha

Bites

CITEXPO moves to 2021

The organizers of the China International Tire Expo (CITEXPO) have moved the 2020 show to Aug. 16-18, 2021. It will be held at the Shanghai World Expo Exhibition & Convention Center.

BKT partners with award

Balkrishna Industries Ltd. (BKT) is the new partner of Tractor of the Year, an award bestowed on European tractors that recognizes cutting-edge technology and a vision of the future.

Continental gives to truckers

Continental Tire the Americas LLC partnered with Love’s Travel Stops to give 100,000 truck drivers a coupon to use inside Love’s locations as a token of appreciation for their work during the pandemic.

Import amnesty requested

The Auto Care Association and other trade groups asked President Donald Trump to delay collection of duties and fees on imports through June 2020. The groups said it would give cash-strapped companies relief.

Bauer Built rewards grads

Bauer Built Inc. has given $1,500 scholarships to seven high school seniors, all of whom are the children or grandchildren of employees. The company has awarded $130,500 in scholarships named after G.F. “Sam” and Ethel V. Bauer since 1994.

ALI updates website

The Automotive Lift Institute (ALI) has updated its website to provide more safety information and resources to lift owners, operators, installers, inspectors and manufacturers.

Plaza Tire welcomes governor

Plaza Tire Service Inc. played host to Missouri Gov. Mike Parson during his local tour to highlight how the state’s economy is reopening, and how businesses are adjusting in light of COVID-19.

Openbay integrates chat

Openbay Inc. has integrated its artificial intelligence-powered online chat platform, Otis, with TireShop, which allows consumers to use the chat window on a dealer’s website to view available service times and book appointments.

Tiremakers suffer losses during 1Q

The first quarter of 2020 was difficult for many tire manufacturers.

Bridgestone Corp. recorded an 11% year-over-year drop in total revenue and a 39% year-over-year decline in operating profit during 1Q 2020.

Sales for Michelin Group declined 8.3% during the first quarter of 2020. The company’s tire volume fell by 11.7% during the same period.

Goodyear Tire & Rubber Co. suffered a net loss of $619 million during the first quarter of 2020 versus a net loss of $61 million during the same period last year. Goodyear’s global sales during 1Q 2020 totaled $3.1 billion, a 15% decline versus 1Q 2019.

Continental AG posted first quarter net sales of 9.8 billion euros, a 10.9% yearover-year decline. EBIT fell to 432 million euros during the first quarter, half of what the company reported during 1Q 2019.

Yokohama Rubber Co. Ltd. posted a year-over-year sales drop of 13.6% during the first quarter. Its operating profit declined by more than 90% 1Q 2019 versus 1Q 2020. Hankook Tire & Technology Co. Ltd. experienced a 12.6% year-over-year sales decline and a year-over-year operating profit loss of 11.2% during the first quarter. Toyo Tire Corp. posted a year-over-year sales decline of 8.9%.

Cooper Tire & Rubber Co. posted a net loss of $12 million during 1Q 2020 versus income of $7 million during the same period last year.

Bridgestone adds sizes to consumer lines

By the end of the third quarter, Bridgestone Americas Inc. will have added more than 90 sizes to several passenger and light truck tire lines.

The Firestone Destination LE3 all-season light truck tire received 64 new sizes during the first quarter of 2020. Two extra sizes were scheduled for introduction in early June.

Also during the first quarter, the Firestone X/T all-terrain light truck/SUV tire received eight new sizes that cover large-diameter rim fitments. Bridgestone is expanding the size range of several key

The Bridgestone Blizzak LM005 winter tire received consumer tire lines. two new sizes in May. Six more sizes will be added on July 1. Also on that date, Bridgestone will add one size to its Transforce CV commercial van tire and another size to its Winterforce CV commercial van tire.

In addition, during the third quarter, Bridgestone plans to add six sizes to its Firestone Firehawk pursuit tire. Five sizes will be added to the Firestone Pursuit AWT line.

Purcell acquires Wilson Industrial Tires

Purcell Tire & Rubber Co. continues to grow with the recent acquisition of Wilson Industrial Tires Inc., which supplies tires for material handling trucks, plus farm, forestry and lawn service equipment.

Purcell officials say Wilson Industrial Tire, which was founded in 1991 by Kenny Wilson, is “one of the only distributors who offers ‘loaners’ for equipment with their tire and wheel exchange program. They also offer all their services - including solids, pneumatics, poly and cushion press forklift tires - on-site, so reductions in productivity are minimal. Solutions, such as track tires and recaps for skid steer tires ,are also available.” Wilson Industrial Tire’s operations will be incorporated into Purcell’s Springfield, Mo., location.

Bites

Trailer orders fell 97%

Orders of new truck trailers plummeted 97% between March and April and plunged 99% from previous year levels, according to a report from ACT Research.

Nama makes investment

Nama Tires Inc.’s parent company says it will invest $10 million in southeast Asia tire projects in 2020. The projects will allow the company to complete its radial truck and bus and passenger tire series.

Titan makes donation

Titan International Inc. is making donations to non-pro t organizations through its Goodyears Ahead campaign. Visitors to the campaign’s website can select one of  ve groups to receive a $5 donation.

Double Coin gains exposure

Love’s Truck Care and Speedco locations throughout the U.S. have added Double Coin medium truck and bus tires to their available inventories. There are 380-plus locations in the country.

Synchrony adds General

Synchrony LLC and Continental Tire the Americas LLC have expanded their partnership with  nancing options that cover the purchase of General brand tires.

BKT launches new website

Balkrishna Industries Ltd.’s (BKT) new website gives buyers several ways to search for tires by industry sector, rim size and pattern. The site also features BKT Stories from brand ambassadors.

Bridgestone donates shields

Employees at Bridgestone Americas Inc.’s technical center in Akron, Ohio, made more than 1,100 protective face shields and donated them to local medical facilities, as well as the Ohio National Guard.

Federated offers relief

As a partner of the Tire Industry Association (TIA), Federated Insurance provides premium reductions to members. The 15% credit applied to Business Auto, Auto Dealer/Garage Coverage and Business Owner premiums from March to June.

Monro puts brakes on acquisitions

Due to the uncertainty caused by the COVID-19 pandemic and in an e ort to keep cash on hand, Monro Inc. is temporarily suspending its acquisition e orts, as well as its national rebranding initiative. Acquisitions have been key to Monro’s growth in recent years. In its most recent  scal year, the company spent $104 million to acquire 89 stores, plus a distribution center.

As for its rebranding e orts, known as the MonroForward initiative, 219 stores were transformed during the chain’s  scal 2020 year and 71 stores were moved to a more tire-oriented model.  e company is halting its acquisition and rebranding e orts as “precautionary steps to further mitigate the near-term headwinds and strengthen its  nancial positioning.” Monro is temporarily halting its spending on remodeling and rebranding efforts.

Monro also says it will defer non-critical capital expenditures; reduce store hours and labor to align with demand; reduce selling, general and administrative expenses; and augment its working capital position.  e Rochester, N.Y.-based chain posted a loss of nearly $3.8 million during its  scal fourth quarter, which ended March 28. Its sales dropped less than a half-percent, year-over-year, during the quarter.

Nokian names new CEO

Jukka Moisio (pictured) is the new CEO and president of Nokian Tyres plc. He replaces Hille Korhonen.

Moisio joins Nokian a er most recently serving as CEO and president of Huhtamaki Oyj, a global packaging company.

Jukka Heinonen, chairman of Nokian’s board, says Moisio “has a proven record in successfully leading stock-listed companies and company turnaround, delivering strong  nancial performance and shareholder returns.” ■

Howard Tire founder Al Howard has died

Al Howard (pictured), who founded Howard Tire in Belmont, Calif., in 1962, died on May 3 at the age of 82.

Under his leadership, Howard Tire grew to seven locations in the San Francisco, Calif., area, and also included one of the largest wholesale tire operations in northern California during the 1980s and early 1990s.

A native of Alameda, Calif., Howard opened his  rst store with the help of a $10,000 loan given by his maternal grandfather, which was repaid in 60 days. He eventually sold Howard Tire to Wheel Works in 1995. He is remembered as a mentor to many individuals in business and the local community. He was a U.S. military veteran, having served on the USS Segundo submarine for more than three years. “As a mentor and patriarch of our fourth-generation tire family, you will forever be remembered for your honorable and highest principles,” says Richard Howard. “Our entire family is forever grateful for building the foundation for our success.”