INSIDE J U LY
Working in a Mobile Market
Details of New OSHA Safety Standards
Skid-Steer Segment Bouncing Back
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Business Succession Plan Taking the Right Steps to Preserve Wealth, Pass Along a Healthy Company and Have a Bright Future
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VOL. 112 NO. 7
JUL12
DEPARTMENTS
FIRST LOOK 4 TireReview.com
FEATURES
Drug-Free Workplace • Tire Siping • Hiring & Firing
VIEWPOINTS
48
Succession Plans
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Skid-Steer Tires
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Top Shop Profile
8 First Off Unpeeling the Onion
80 The Car Side Cool Vibes
NEWS
10 Newsmakers Nexen Grows Toward Goal • BKT ‘Day Out’ • Pirelli’s Addition
MANAGEMENT 34 Sales Intelligence Tire & Service Pricing
36 Selling Smart Build from Within
42 Marketing Matters Mobile Marketing
IQ 60 Service Perfect Brakes?
62 Service Power-Assisted Brakes
66 TPMS Service Q&A
Many tire dealers put off succession planning and wealth-preservation strategizing until it’s either too late, or later than is ideal. But financial advisors warn that today’s economic uncertainty is only made worse by delays in business estate planning. Find out what should be considered when passing along your business, as well as preserving your wealth.
From farming and forestry to landscaping and snow removal – and almost everything in between – the applications for skid-steer loaders are seemingly endless. But what should dealers do to meet the needs of these customers? Take a look at the latest market trends and technology to help boost profits in this versatile segment.
Though the Chicago suburbs hold stiff competition in the tire and automotive service business, Duxler Complete Auto Care has risen to the top. See how the family-owned dealership has survived and thrived through a mix of customer service standards, effective training and employee appreciation.
IN FOCUS 68 Truck New Standards
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TIRE REVIEW (ISSN 0040-8085) (July 2012, Volume 112, Number 7. Published monthly by Babcox Media Inc., 3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 670-1234, FAX (330) 670-0874. Periodical postage paid at Akron, OH 44333 and additional mailing offices. POSTMASTER: Send address changes to Tire Review, 3550 Embassy Parkway, Akron, OH 44333. A limited number of complimentary subscriptions are available to individuals who meet the qualification requirements. Call (330) 6701234, ext. 242, to speak to a subscription services representative or FAX us at (330) 670-5335. Paid subscriptions are available for non-qualified subscribers at the following rates: U.S.: $69 for one year. Canada: $89 for one year. Canadian rates include GST. Ohio residents add current county sales tax. Other foreign rates/via airmail: $129 for one year. Payable in advance in U.S. funds. Mail payment to Tire Review, P.O. Box 75692, Cleveland, OH 44101-4755. Visa, MasterCard or American Express accepted. Founded in 1901. © 2012 by Babcox Media Inc. “Tire Review” is a trademark of Babcox Media Inc., registered with the U.S. Patent and Trademark office. All rights reserved. Publisher reserves the right to reject any subscription that does not conform to his standards or buying power coverage. Advertising which is below standard is refused. Opinions in signed articles and advertisements are not necessarily those of this magazine or its publisher. Diligent effort is made to ensure the integrity of every statement. Unsolicited manuscripts must be accompanied by return postage.
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FIRST LOOK tirereview.com
JULY 2012 tirereview.com
DRUG-FREE WORKPLACE? Drug users cause billions of dollars in lost productivity and increase health care costs. Drug-using employees also are more likely to be involved in a workplace accident and more likely to file a workers’ compensation claim. This is money out of your pocket and off the bottom line. A comprehensive substance abuse program will address most of the issues, and while they will not eliminate drugs, they can deter drug use by your employees. tirereview.com/inBusiness
inBusiness
inService
Terminating Employees
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The decision to terminate an employee is never easy and usually is a last-resort measure. But unfortunately, termination may be inevitable. To avoid legal problems down the road, you should establish a set approach to employee management that includes procedures for firing an employee. We offer six steps that can help you effectively handle terminations. tirereview.com/inBusiness
New tires often include sipes in their design, but some tire dealers also offer to put these slices in customers’ tires on demand. Why? The answer is simple: because siping can improve a tire’s traction in snow and ice, giving all-season tires the bite of severe snow-service tires and allowing high-performance tires to go from free-spinning to the level of all-season tires. And siping is a nice way to add to your bottom line. tirereview.com/inService
Top 10 Headlines From Last Month • • • • • • • • • •
N.Y. Senate Approves Tire Repair Legislation Dealer Employee Killed in Robbery Shooting 10,000 Cooper-Made Tires Under Recall Thieves Bust Through Fence, Steal $250,000 in Tires and Wheels U.S. Vehicle Population Now Averages 11 Years Supreme Court Upholds Health Care Act Confidence Shaken, Drops for First June Reading TIA Offers Significant Amendments to RMA Tire Repair Bill Got Scraps? Take ’Em to Direct Tire Bridgestone Sets $74 Million Farm Tire Expansion
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TIRE REVIEW
- July/2012
Your Comments, Thoughts, Ideas Happy Surprise: Outstanding TIA Class “Thank you, Craig, for your positive review of the ATS course held in Orlando. We are very proud of Matt White and all of our outstanding trainers.” – Christine Marnett, TIA Director of Training Always Install Two New Tires on the Rear Axle “No, this is not bogus. I have driven cars both ways in South Carolina at Michelin’s test track and you have a lot more control of the vehicle with the new tires on the rear.” – Rstaley50 Michelin ‘Communicating’ Tire Gets Olympic Bow “Sounds like a great idea, but then so did PAX.” – Oehubcaps Thieves Bust Through Fence, Steal $250,000 in Tires and Wheels “They should look for the guys hauling around all of those cinder blocks; where are they buying or stealing these from is the question. And how do you manage to do all of this and not leave any prints? CSI to the rescue.” – Westbrook TIA Offers Significant Amendments to RMA Tire Repair Bill “I’m no politician, but this sounds like we’re all getting on the same page? Tire repairers who use methods other than those sanctioned by the tire manufacturers and RMA should be held accountable for their actions. I hope this passes in 50 states.” – Spencer
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VIEWPOINTS First Off 8
Jim Smith, Editor jsmith@babcox.com
UNPEELING THE ONION Trying to Get to the Bottom of World-Class Customer Service
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hanks to our annual search for the “best of the best” tire dealers through the Top Shop Award program, we often are asked for tips on how to win this honor. To which we respond: “The best dealerships are those that are very good at everything. More than anything, though, they have an obvious world-class customer-first attitude that permeates the entire organization from top to bottom.” And then we’re asked: “So, just what is ‘world-class customer service?’” This is where thoughtful silence ensues, emphasized by prayerful glances to the heavens as though the true answer can only come from above. In fact, we’re hoping we can think of an excuse to excuse ourselves before trying to offer an answer that is not so clear-cut. The real truth is that great customer service is totally up to the customer. They are the ones experiencing the “customer service” afforded by your tire dealership. It would be far easier to describe quantum mechanics than to provide a definitive explanation of “world-class customer service.” We’re not trying to dodge the question, but there is no black-and-white, absolute 100% sure thing, bet-thehouse-on-it world-class customer service system. For every 100 customers, there are 100 entirely different sets of expectations. Some are simple, cut-and-dried transactions: warm smile, personable tone, thorough and easy-to-understand responses, tire recommendations that make sense, well-explained service- and tire-cost estimates, comprehensive review of vehicle systems, comeback-proof repairs, clean vehicle ready to go at the prescribed time, and a few other points.
TIRE REVIEW
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Unfortunately, others are more difficult, often because the customer’s native mode is “difficult.” Or a human error intervened, accidentally creating a tough customer service pickle that must be carefully and thoughtfully navigated. Defining “world-class customer service” becomes difficult because what we think should be simple and cut-and-dried is not so. What are “easy-to-understand responses” to some are “gobbledy-gook” to others. “Tire recommendations that make sense” to most can be heard as “trying to rip me off” by certain customers. Everyone is different, and that’s why a singular, true definition of “world-class customer service” is entirely in the hands of the customer. Or is it? Skilled practitioners can suss out most potentially difficult customers early in the sales process, and adjust their approach to match the situation. This includes letting others in the service chain – from the tire tech to the service desk – redouble their efforts to win over Mr. Grumpypants. They can smell from a parking lot away the potential for an unfortunate customer experience, and adjust their tone and manner to put things on the right path from the start. They can plan ahead in an effort to deliver world-class customer service to world-class pains in the arse. You can avert customer service disasters by doing the unexpected nice things, like vacuuming out a customer’s car, washing the windows, keeping up with the latest waiting area magazines or offering free coffee or soft drinks, having an area to amuse a flustered mom’s little ones. These are not bank account breakers, by any means. These are how you build a sustainable customer
base, creating additional reasons to pick your shop when it comes time for new rubber or brake pads instead of turning to the price-guy down the street. We’d all quickly recognize bad customer service because we’ve all lived through it. Many, many, many unfortunate times. Despite years of often ugly experiences, it’s as difficult to clearly define crappy customer service as it is to spell out great service. We know it when we step in it, but don’t ask us to explain it! I had occasion to step in it recently while trying to help a family member sort through an insurance issue. This was a big, major, national insurance company, not unlike the one I have my personal insurance with. But I had not dealt with this outfit, and now I have no reason to do so in the future. Over the course of five painful days, I made contact with seven different people in the company’s ill-named “Customer Service Department.” Over that time, it seemed no one communicated with any others, that there was no one file – paper or electronic – that held notes from my previous contact. I envisioned this long hallway of tiny gray offices, with those old-school vacuum tubes clogged with memos and file notes and letters and such, all zipping along to nowhere in particular. And that’s exactly how I was treated. None of my conversations with the agents were “recorded for training purposes,” so none of the conversations featured an actual resolution of any kind. Or the hope for one. They were happy to offer their “apologies,” but no effort to help me unpeel the onion layers separating the problem from complete resolution. Not world-class customer service. And for that, they have lost a customer for life. TR
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NEWS newsmakers
N.Y. Repair Law Dead, RMA to Continue Push Tire dealers and tire service shops in the state of New York can breathe a sigh of relief – for now – as controversial tire repair legislation died quietly at the close of June 22. That is when the state’s most recent legislative session ended, taking with it all unfinished business including proposed legislation that had not made it to the full Senate or House. That included the RMA-backed bills – Senate 7082 and Assembly 9683 – that would have effectively force any company performing repairs on consumer tires to follow accepted tire industry standards. The potential for tire repair legislation – in New York or any other state – remains, however. “Our members are very serious about addressing this safety issue,” said Dan Zielinski, senior vice president of the RMA. “However, passing legislation is not an easy task. The legislative process is typically a marathon rather than a sprint, and we were happy to see the New York repair measure pass a Senate committee. Clearly we have some support and hope to capitalize on this year’s progress and push harder next year to get across the goal line.” Zielinski said that over the next few months, the RMA will be “deciding whether to become involved in additional states” in terms of proposing tire repair legislation. “I do expect that we will be back again in New York to advocate for tire repair legislation,” he added. RMA got as far as seeing S 7082 passed out of the N.Y. Senate Transportation Committee on June 5 and sent to the full Senate. “Despite years of effort by tire manufacturers, tire dealer organizations and tire repair materials manufacturers to educate repair shops about proper repair, too many improper repairs are performed. RMA supports these bills and urges New York legislators to enact this legislation,” Zielinski said at the time the bills were introduced. On June 14, TIA offered amendments to the RMA-backed bills, which effectively turned the RMA version around by legislating against improper repairs. Instead of dictating a proper tire repair, the TIA amendments “put the focus on
improper tire repair practices such as plugging the tire on the wheel without demounting it for inspection and installing a patch on the innerliner without filling the injury,” TIA said at the time. “After meeting with several of the tire companies on an individual basis, as well as with officials from the RMA, it became obvious there would be continued efforts to pass tire repair legislation at the state level,” said Roy Littlefield, TIA executive vice president. The association said it “recognizes the hazards that improperly repaired tires create for motorists, so TIA decided to act in the best interest of public safety by supporting legislation that prohibits methods and materials that do not conform to industry standards. The TIA amendments would make it illegal for retailers to plug a tire while it is still mounted on the wheel or install a patch without a plug. Violations also would occur if injuries in the shoulder or sidewall were repaired, and it would be illegal to repair a tire that has already been improperly repaired.” TIA’s amendments included changing the name of the bill from the “Proper Tire Repair Act” to the “Tire Repair Act” and removing specific repair steps in favor of a firm statement of what would constitute an improper repair. In addition, they would have added provisions making illegal repairs using “cured rubber stem or string plug” installed from “outside without demounting the tire from the rim;” and those where a “tire patch is installed on the innerliner without a cured rubber stem.” TIA’s amendments defined the three basic steps necessary for a proper tire repair: • Demount the tire from the wheel assembly. • Inspect the tire to determine the extent of damage on the inside of the tire. • Fill the injury with a cured rubber stem and properly install a tire patch or a combination repair unit. While TIA did not specifically address the possibility, if New York passed any type of tire repair legislation, the association expected that to become the model for a state-by-state approach.
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Publisher David Moniz, ext. 215 dmoniz@babcox.com Editor Jim Smith, ext. 298 jsmith@babcox.com Managing Editor Denise Koeth, ext. 274 dkoeth@babcox.com Graphic Designer Nichole Anderson, ext. 232 nanderson@babcox.com Contributing Editors Tom Duke, Mac Demere, Al Cohn, Joanne Draus Klein, Tim Good, Shana O’Malley, Jeff Vasichek, Jody DeVere, Rick Barnhart, Steve Ferrante Advertising Services Kelly McAleese, ext. 284 kmcaleese@babcox.com Circulation Manager Pat Robinson, ext. 276 probinson@babcox.com Sr. Circulation Specialist Star Mackey, ext. 242 smackey@babcox.com Sales Representatives Doug Basford, ext. 255 dbasford@babcox.com Dean Martin, ext. 225 dmartin@babcox.com Jim Merle, ext. 280 jmerle@babcox.com Glenn Warner, ext. 212 gwarner@babcox.com Sean Donohue, ext. 206 sdonohue@babcox.com Roberto Almenar, ext. 233 ralmenar@babcox.com John Zick 949-756-8838 jzick@babcox.com Bobbie Adams, ext. 238 badams@babcox.com Tom Staab, ext. 224 tstaab@babcox.com David Benson, ext. 210 dbenson@babcox.com
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Babcox Media Inc. Bill Babcox, President Greg Cira, Vice President, CFO Jeff Stankard, Vice President Beth Scheetz, Controller Brad Mitchell, Director of eMedia & Audience Development In Memorium: Founder: Edward S. Babcox (1885-1970) Tom B. Babcox (1919-1995), Chairman
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Goodyear Buys Toyo, Mitsubishi JV Shares On May 31, Goodyear Tire & Rubber Co. acquired 100% ownership of Nippon Giant Tire (NGT) in Tatsuno, Japan, an OTR tire joint venture the company had operated with Toyo Tire & Rubber Co. and Mitsubishi Corp. since 1985. Prior to the deal, Goodyear held a 65% share in NGT, while Toyo and Mitsubishi owned 30% and 5% shares, respectively. With the purchase, Goodyear said it plans to invest $250 million to upgrade and expand OTR capacity at the NGT plant in Japan. The investment will enable NGT to manufacture a full line of 57-inch tires, as well as 63-inch tires at a future date, said Dan Smytka, president of Goodyear’s Asia Pacific region. Goodyear began production of 63-inch OTR tires at its plant in Topeka, Kan., in late 2010. The company also produces OTR tires at facilities in Brazil, Colombia, Germany, Luxembourg, India, Indonesia, Thailand, South Africa and Turkey. Toyo stated the sale was “mutual,” and was made to “further the goals of Toyo’s Mid-Term Business Plan 2011... to further concentrate its business resources towards growth and strategic markets.”
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models have met the fuel efficiency criteria, giving them a leg up in the continuing battle for fleet maintenance manager attention. While the EPA only took up the details of a testing protocol and verification system within the last 18 months, retreaders and their suppliers have long wanted their products included in some fashion. The interim test protocol applies to both precure and mold cure retreads, and uses a “new unused” Yokohama Super Steel RY-617 in size 295/75R22.5 as the baseline casing for all testing. Those seeking verification for super wide retreads can use “an alternate casing made from a current EPA verified super-wide new tire.” Each retread product must be tested three times on identical casings, and separately for trailer and drive patterns. The rolling resistance coefficient target values set by the EPA are 7.2 for a drive axle test casing and 6.0 for a trailer axle test casing; 6.5 for a drive axle alternate casing, and 5.4 for a trailer axle alternate casing. EPA has set an interim test protocol and target values, which have been sent to all retread system suppliers. Those manufacturers interested in applying for verification can contact the EPA at tech_center@epa.gov.
Retreads Eligible for SmartWay Verification Bridgestone Re-Ups Retreaders and retread system suppli- With NFL, Drops Show ers have long wanted to be part of the EPA SmartWay program. Now they have their chance. On June 11, the U.S. EPA issued an interim protocol by which retread technologies can be “verified low rolling resistance retread products.” A letter and instructions from Karl Simon, director of transportation and climate division of U.S. EPA, outlined how the new program for the “establishment of a verification program for tire retread technologies for use on linehaul Class 8 trucks” will work. Since 2007, the EPA’s SmartWay program has verified new radial medium truck tires for low rolling resistance. Dozens of manufacturer brand tire
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Bridgestone Americas re-upped as a sponsor of the National Football League, but it will no longer underwrite the Super Bowl Halftime Show as it has over the last five years. In mid-June, the tiremaker and NFL signed a four-year sponsorship extension to continue as the “Official Tire of the National Football League” – through March 2016 – during a break in the action at the Tennessee Titans training facility in Nashville.
In dropping in annual commitment to the Super Bowl Halftime Show – an estimated $5 million sponsorship – Bridgestone instead plans to expand advertising during NFL games and related events, such as the pre-draft NFL Combine, and “engage more closely with consumers” through heavy emphasis on digital and broadcast media. Over Bridgestone’s sponsorship period, Super Bowl Halftime Show performers – some well received, others with a bit of controversy – have included Bruce Springsteen, The Who, Black Eyed Peas, and Madonna.
Nexen Launches Online Dealer Portal Nexen Tire America Inc. has launched a new online dealer portal – nexentireonline.com/login.aspx – to assist its customers. Nexen said its portal was designed to be intuitive and userfriendly, and “provide our dealers with a focus on what we can offer them as well as the results we obtained.” “The Dealer Portal is an effort to take Nexen Tire America to the next level in meeting the needs of our valued partners,” the company continued. “The new dealer portal will be a great navigable informative source for our clients. The tiremaker said its portal features access to Nexen’s updated tire inventory, a means to process and submit sales quotations for wholesale and factory-direct sales, the ability for users to export data on purchasing history and review current order status, post and receive notifications from Nexen, and more.
Former TR Managing Editor Aichlmayr Dies Mary Aichlmayr, one-time managing editor of TIRE REVIEW magazine, passed away unexpectedly on June 3. She joined the magazine in DecemContinued on Pg. 15
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Business Barometer
By Marketplace Insights, 920-487-8020
Retail Sales – May ’12 vs. May ’11 (Final) 98
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Sponsored By:
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Total Tire Units
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Total Service $s
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Retail Sales – June ’12 vs. May ’12 95
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100.6 99.9 100.2 99.8
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LT/SUV
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Retail Sales – Year to Date
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ber 2003 after serving as an editor with October Research Group. During her nearly four-year career with Babcox Media, she also served as managing editor of Fleet Equipment magazine, and was instrumental in both publications’ digital efforts. Aichlmayr left Babcox Media in August 2007 to become editor of Penton Media’s MATERIAL HANDLING MANAGEMENT magazine in Cleveland, and then became marketing manager at Comprehensive Logistics Inc. in eastern Ohio. She graduated from Cleveland’s Baldwin-Wallace College in 1997 with a degree in English, serving as a chief editor of the college’s literary magazine, and helping research and publish a book on literary theory. “Mary was an extremely talented, focused individual and a tremendous contributor to our company,” said Bill Babcox, president and CEO of Babcox Media. “Most of all, she will be remembered for her warm, engaging personality and the connection she made with so many people. Mary will be deeply missed.”
Bridgestone Sets $74 Million for Ag Tires Bridgestone Americas will spend another $74 million on additional output at its Des Moines farm tire plant. That new investment comes on top of $77 million previously committed to capacity expansion that was announced more than two years ago. The company said the expansion projects are slated to be completed sometime in 2013.
Tiremaker Looks to Cut Carbon Footprint Omni United has hired Ernst & Young to assess the greenhouse gas impact of its products and to advise the tiremaker on implementing initiatives to reduce and/or offset its carbon footprint. “We have chosen Ernst & Young to conduct this study as it is one of the leading global consulting firms specializing in climate change and sustainability services,” said G.S. Sareen, CEO of
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Omni United. “This study is significant for Omni United as it sets our company on track towards a sustainable future as an environmentally and socially responsible global tire company.” According to the tiremaker, the initial effort aims to quantify greenhouse gas emissions generated by Omni’s key business activities, identifying the areas
where emissions can be reduced and the options available to offset its carbon footprint. A report from the threemonth initial study is due later this year. “Our aim is to become the first tire company to have all of our products recycled at the end of their lifespan,” Sareen said, and become a “carbon-neutral” company. TR
Effectively target prospective employees in the tire and service market. Tire Review would like to introduce you to AftermarketJobs.com. You need to find the right candidate for the job and there’s no time to waste. In today’s competitive business climate, it’s imperative that you find eager, qualified candidates to ensure your company’s success. AftermarketJobs.com is focused on employment positions in the tire and service markets. AftermarketJobs.com works around the clock to promote positions within your company and target prospective employees in an extremely cost-effective way. Look to AftermarketJobs.com to help you build your winning team.
Contact Karen Kaim at 330-670-1234 ext. 295 or kkaim@babcox.com
July/2012 -
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AMBITIOUS GOALS Fast-Growing Nexen Tire Sets Sights High With New Plant
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outh Korea’s oldest tire manufacturer isn’t what you might assume. Originally established in 1942 as Heung-A Tire, the company now known as Nexen Tire Corp. is celebrating 70 years in business this year, and has ambitious growth plans for its future. Nexen (which means “next century” in Korean) now has the capacity to produce some 30 million passenger and light truck/SUV tires from its established plants in Yangsan, South Korea, and Qingdao, China, and its recently opened facility in Changnyeong, South Korea. That new plant, which a group of international tire journalists had the opportunity to visit in May, is the lynchpin in Nexen’s goal of reaching $2.5 billion in tire sales and becoming a top 10 global tiremaker by 2020. To reach that mark, Nexen executive vice president of sales ByungWoo Lee said the tiremaker plans to reach 60 million annual units by 2018 and 80 million tires by 2020. That, he acknowledged, will mean adding another tire plant. The new Changnyeong plant, Nexen said, currently employs 500 people and should be producing at an annualized rate of three million tires by the close of this year. Over the next six years, a series of planned expansions will boost capacity to 60,000 units a day, or 21 million a year, with about 2,000 employees. Located about three hours southeast of Nexen’s headquarters in Seoul, ground was broken for the Changnyeong plant in June 2010, and the first tires came off the production line this past April. It might take a little
while to drive there, but the new plant is located near convenient highway systems and the key port of Busan. Included within the highly automated Changnyeong tire factory’s 4.65 million square feet of floor space are some of the latest, most technologically advanced tire production equipment from suppliers like Mitsubishi, Harburg Freudenberger, Kobelco, Nadada Engineering and VMI.
Nexen’s new plant in Changnyeong, South Korea, will produce at an annualized rate of three million tires by the close of this year. Expansions over the next six years will see the facility’s annual capacity reach 21 million units.
New technology also is employed to improve the work environment, including advanced lighting via the use of solar panels and natural light, and ventilation systems that remove rubber odors and heat from the factory. General exercise areas, health facilities and common areas for workers to relax in between shifts all seem to have a positive impact on this factory and its employees. Nexen said it chose Changnyeong due to its lower labor costs and
The new plant is the lynchpin in Nexen’s goal of reaching $2.5 billion in tire sales and becoming a top 10 global tiremaker by 2020. 16
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because the company believes it can better guarantee quality product at a home-grown factory. In addition, the South Korean government provides incentives to South Korean companies that maintain domestic facilities. In addition to its production plants, Nexen maintains four research and development facilities throughout the world: its Core Technology Center in Yangsan, South Korea; technical cen-
ters in Richfield, Ohio, for North America OE and core property research, and in Eschborn, Germany, for European OE; and a testing and technical center in Qingdao for Chinese domestic replacement and OE tires. Currently, Nexen provides OE support to Hyundai, Kia, Ssang Yong, Chevrolet, Deijing Hyundai and SAIC. In addition, the tiremaker recently announced a fitment with Fiat in 2013. Its business with Hyundai includes supplying the carmaker’s production efforts in the U.S.
Global Ambitions Plans for future expansions of the Changnyeong factory already are in place to assist in accomplishing a cor-
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porate goal of becoming one of the top 10 tire manufacturers in the world by 2020. Byung-Woo Lee, Nexen executive vice president of sales, said he firmly believes Nexen will succeed in reaching this goal, adding that the company’s South Korean workforce and state-of-the-art automation systems offer the competitive ability Nexen needs to deliver “world-class high performance, light truck/SUV and eco-friendly tires.”
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sor of the recent the 2012 Chinese FA Super Cup. Joo-Ho Song, senior managing director of global marketing, defined Nexen as “a tire company that presents itself as an upper level, second tier brand competing with associated brands from major tire manufacturers, well-known imports and private brands.” In the U.S. and Canada, the company believes consumers compare Nexen favorably to other South
best-selling tires in the U.S. and Canada are the N5000, CP672 and the Roadian HT. Over the last five years, Nexen has placed added emphasis on growth in the U.S. and Canada, and has found that signing quality customers has given them room to grow with a financially sound and strong dealer network. When asked if Nexen has interest in building a factory in the Americas, company spokespeople could only
The new Changnyeong factory (left) encompasses 4.65 million square feet of floor space. At right, Byung-Woo Lee, Nexen executive vice president of sales, toasts the company’s success at May’s media event.
“We have poured our hearts and souls into making sure that the Changnyeong industrial complex is a world-class facility,” Lee said. Globally, Nexen sells tires in 123 countries worldwide. In 2011, its $1.3 billion in global sales were divided regionally as follows: America 30%, Europe 30%, the Middle East and Africa 13%, Asia and Oceania 12%, and South Korea 15%. Supporting its international distribution, Nexen recently exhibited at the bi-annual Reifen 2012 in Essen, Germany, and will have booths at both the upcoming Moscow International Automobile Salon in August and the SEMA Show/Global Tire Expo in Las Vegas this November. And its sports marketing efforts include sponsorship support of soccer team Eintrach Frankfurt in Germany’s Bundesliga, and as a corporate spon-
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Korean tire manufacturers, as well as brands like Cooper and Falken. In North America – where annual sales are in the $350 million to $400 million range – Nexen aims to expand its business presence through developing market-driven products suitable for the region. It was only earlier this year that the company established Nexen Tire Inc. in Canada, headquartered in Markham, Ont. Song is interested in improving Nexen’s brand awareness and value proposition for dealers in North America by moving into motorsports and working itself up through the ranks, gaining recognition on OE positions worldwide, and competing successfully in consumer magazine tire testing. Currently in the U.S. and Canada, Nexen’s motorsports program focuses mainly on drifting. The tiremaker’s
offer that the tiremaker would consider building a plant outside of Asia based upon market conditions. According to Song, for 2012 Nexen’s R&D team is developing its first runflat tire, slated to be a replacement tire option at the start of next year. The tiremaker also plans to export this runflat tire to Europe. In addition, Nexen is planning further tire introductions in 2012 that will cover five new passenger patterns and six new light truck/SUV radials. Considering how the tiremaker has arranged its mid- and long-term goals based on the new Changnyeong factory, one can clearly see why Nexen has become a world-class tire manufacturer with ambitious goals. TR
David Moniz, Publisher dmoniz@babcox.com
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QUITE A DAY BKT Get Together Helps Dealers, Tiremaker Grow Together
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t would seem counterintuitive that an Indian tiremaker would entertain a large group of North American tire dealers for a week in northern Italy. Oh, and call it a “day out.” In reality, though, it all made perfect sense for tiremaker BKT’s semiannual “BKT Day Out” event. Especially for the 105 people (representing 32 tire distributors and media) from the U.S., Canada and Mexico who were hosted on a memorable five-day excursion to Italy. (There also was a group of 15 representing dealers in Turkey, Greece, New Zealand and Australia, as well as contingents from BKT Tires USA, BKT Europe and the parent company in Mumbai, India.) Lead hosts for the North American group were Rami Bitran and Bill Haney of BKT Tires USA, as well as BKT Europe managing director Lucia Salmaso. In attendance were such distributors as D&K Tire, Hercules Tire & Rubber Co., K&M Tire, Kal Tire, Lucy’s Tire, Millersburg Tire Service, Neumaticos Muevetierra, OK Tire, Pete’s Tire, Pneus Unimax, TBC Corp., Tirecraft, Tyres International, Universal Tire and others. From BKT’s headquarters were vice chairman and managing director Arvind Poddar, executive directors (and cousins) Anurag Poddar and Rajiv Poddar, and D.M. Vaidya, director of technology. The “Day Out” was far from just a day, with a multitude of activities planned to entertain and engage the guests. Over the five days, guests enjoyed a boat excursion across Lake Como, past multi-million dollar villas
owned by stars like George Clooney and Madonna, businessman Richard Branson, soccer icon Ronaldinho and others; sightseeing trips to Lecco and Bergamo; visits to Tremezzo and Bellagio; a tour across Milan; dinners in villas and top restaurants, and more. “At BKT, we believe in ‘Getting Together,’ which is a process that helps
BKT’s guest dealers got a first-hand look at the wide range of tire testing performed at the Agricultural Research Council facility in Treviglio, Italy.
us in ‘Growing Together,’” said Arvind Poddar in his welcome letter to guests. “Towards this goal, BKT’s Day Out is an initiative of BKT that facilitates our channel partners to come closer and bond together.” Building a strong relationship with distributors and front line commercial dealers is one of the reasons BKT has experienced tremendous growth – globally and within North America – over the past five years. And, according to Poddar, those relationships will
Building a strong relationship with distributors and commercial dealers is one of the reasons BKT has experienced tremendous growth. 20
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be vital as the company presses ahead to its goal of 10% global marketshare in the OTR and agricultural tire category. Much of BKT’s recent success is tied to the effects of the global economy, with end-users of all sizes discovering they can find high quality farm and OTR tires without having to pay
premium prices charged by better known brands, and – perhaps more importantly – a ready of supply of tires in two segments experiencing massive global growth. “We have done a good job leveraging those opportunities,” he said with a sense of pride. Reaching that 10% global marketshare level, Poddar realizes, requires tires. “For the year 2012 we have initiated an aggressive growth plan,” Poddar said earlier this year. “Production is targeted to increase by 32%. This would be achieved by upgraded capacities in the existing three plants as well as partial contribution from our new Bhuj plant. We are targeting that in the second half of this year, the Bhuj plant would contribute Continued on Pg. 22
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Celebrating BKT’s success were (from left) Rami Bitran of BKT Tires USA, Lucia Salmaso of BKT Europe, and corporate executive directors Rajiv Poddar and Anurag Poddar. BKT ag tires got a full workout at the testing demonstration at the Agricultural Research Council facility in Treviglio, Italy.
around 20% of the total production for 2012.” Commercial production at the Bhuj plant will start later this year, at least a quarter earlier than anticipated. Once fully operational, the Bhuj plant will effectively double BKT’s total capacity. By the close of 2012, the four plants combined will have a capacity of around 170,000 metric tons, increasing to 225,000 next year and reaching 280,000 metric tons in 2014. The older three tire plants are located in Aurangabad (opened in 1988), Bhiwadi (2002) and Chopanski (2006). In addition, BKT operates its own mold plant (2006) near Mumbai, which Poddar said gives the company faster turnaround times and allows it to quickly add sizes and products. And BKT has added a lot of products and sizes. All told, BKT today boasts some 1,800 SKUs, covering farm, OTR, industrial, lawn/garden and ATV tires. Globally, BKT’s mix is 66% farm, 15% OTR/construction, 15% OTR/mining, and 4% lawn/garden and ATV. In five years’ time, Poddar wants to rebalance that to 53% farm, 20% OTR/construction, 22% OTR/mining, and 5% lawn/garden and ATV. BKT plans to continue making upgrades to its facilities, processes and capacity, and will continue earmarking at least $50 million each year on capital projects. At the end of 2014, the added capacity should help it
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keep its goal of gaining 50% of its tire sales in Europe, 25% in the Americas, 10% in India, and 15% from the rest of the world. Right now, BKT’s bias/radial mix is 70/30, which it wants to push to 50/50 by the close of 2014. The company’s fantastic growth over the past few years – BKT’s objective is 35% year-over-year growth – “offers us renewed enthusiasm to invest more and more into our R&D initiatives, product development and brand building,” Poddar said. BKT’s global tire sales goal is to grow from $611 million posted in 2011 to $1.36 billion in 2014 – doubling its tire-based revenue in four short years. Its North American operation has a goal of $220 million in sales in 2014 (up from the $96 million posted for 2011) – a quarter of the company’s worldwide ambition.
True Tire Testing Poddar is very confident about where BKT is going, and is not surprised by the success its tire operations have seen over the last five years. He is not at all cocky, rather he is demonstrably grateful for the company’s good fortune and is driven to reach new heights and leave a strong base for the next generation to carry forward. BKT – rather, Balkrishna Tyres – has always been a family business. Founded in 1951 by Poddar’s late father Mahabirprasad Poddar and uncle Dhara-
prasad Poddar (who remains chairman of the parent company), the now-named Siyaram-Poddar Group had total sales of $800 million last year, and is involved in textiles, garments, packaging board, chemicals, real estate and tires. While the Poddar family owns 55% of the stock in Siyaram-Poddar, Arvind Poddar likes and wants to maintain a family feel and atmosphere within BKT and between the tiremaker and its customers. He says he is very proud of the BKT team in India and those in other world markets. And employees feel a sense of ownership in the company, he said, which helps build stronger customer relationships. In the company’s latest corporate book, Poddar said, “To be precise, we have put our hearts in the business and the business in our hearts.” “This is a family company with the highest family values,” BKT Tires USA general manager Rami Bitran told TIRE REVIEW last year. “And that shows in how we treat customers.” Tire dealers are looking for suppliers with integrity, product quality and a high level of service. “That’s why having strong family values is so important to us,” he said. “Our motto as a company is we do what we say. If we cannot live up to our word, then we are better off doing nothing at all. We cannot promise Continued on Pg. 24
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Vice chairman and managing director Arvind Poddar said the company’s greatest hurdle is to “maintain our momentum in quality and service...and train our people to meet those.” On right, testing includes instrumented draw-bar tests measuring traction.
and then not deliver,” Bitran said. BKT’s biggest hurdle right now, Poddar said, “is to keep going forward, maintain our momentum in quality and service, keep our levels high and our expectations high, and train our people to meet those.” “Our people” includes the customers, and one of the business reasons behind the trip to Italy was to see how BKT’s tires are tested at the world-class Agricultural Research Council’s tire test facility in Treviglio. The CRA-ING facilities include ample outdoor testing – on- and off-road – including traction, handling and drawbar tests; a complete laboratory; multi-million dollar “shaker” test equipment; and a relatively simple
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test to gauge the footprint and flotation ability of tractor tires. Separate from this event, BKT contracts with the wholly independent CRA-ING to do comparative assessments of its ag products vs. key competitor tires, primarily on tractor units popular in Europe. Tire speed and handling testing is done on a paved oval track, while traction and drawbar tests are conducted using tractors on unpaved, vegetation-covered fields. In the drawbar test, a live tractor pulls a “rolling dynamometer,” an older tractor retrofitted with test gear. This tests the effectiveness of tread designs and inflation level to optimize real-world field performance. The handling test has tractors slaloming through a series of cones at a speed of around 43 kph. Farm tires in Europe tend to see a lot of pavement, so this type of highspeed test is important. Footprint tests check a tire’s soil compaction factor. Developed by CRA-ING, this test uses a lightweight, dense styrofoam-like material. The tire – mounted on
a tractor – is lowered down onto a large block of the material, allowing the loaded tire footprint to create a negative impression into the material. This allows scientists to see how a loaded tire would interact with soil, and how different inflation pressures impact a tire’s footprint. The shaker test is not unlike those done by automakers on passenger vehicles. The test gauges how the tractor suspension – including the tire – adds or detracts from operator comfort and in-field vehicle performance. A full-size tractor (in this case a John Deere 8320 on four BKT Agrimax Fortis tires) is parked on four pads attached to the shaker, which, through some serious engineering, is actually 100% free floating – attached to nothing – so test results aren’t affected by outside forces. “We needed to bring customers to the test center,” said Poddar of the long-distance trip to CRA-ING. “We want them to know and see the testing our tires undergo, and what we are doing.” For the OTR and farm tire specialist, the “Day Out” was a long one, but it proved its point by bringing family together, sharing success and looking forward to a bright future. TR Jim Smith, Editor jsmith@babcox.com
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PREMIUM ADDITION $300 Million Mexico Plant is Cornerstone of Pirelli’s N.A. Growth Targets American customers, he noted. will increase Pirelli’s local NAFTA irelli SpA’s formal opening cere“Until now, we’ve served the NAF production, from 6% in 2011 to 11% mony for its new $300 million TA market mostly from Brazil, as well this year, and finally to 53% in 2015, passenger and light truck/SUV as partly from Europe and China,” according to the tiremaker. tire plant in Silao, Mexico, can be Tronchetti Provera said. “This plant is Also on hand for the ceremony was described using the same words as the a way to serve customers directly, Paolo Ferrari, recently appointed chairimpact the tiremaker hopes the facility allowing for better service because we man and CEO of Pirelli Tire North will have on its operations in the can send tires anywhere in the U.S. Am erica (PTNA), who outlined the NAFTA region. within four days; from Brazil, it takes tiremaker’ s near-term market share Big. Influential. Premium. goals. “Our premium market Just how massive? The new share right now is around Silao plant, Pirelli’s first in 6% in the U.S. (15% in Mexico and 22nd globally, is Canada),” he said, adding part of a planned $400 milthat as part of Pirelli’s threelion investment in tire proyear plan, “we plan to grow duction in that country. The in terms of premium volume plant will produce higher-end at least twice as fast as the performance and light truck/market. So that could lead to SUV tires for the U.S., Canada a gain of at least two to three and Mexico at a rate of points of market share.” 400,000 annually by the end Ferrari said this will be of this year. Targeted capacity attainable through the tireexpansions will see the facility maker’ s improved service produce 3.5 million tires per and supply plans, in addiyear in 2015, after the first tion to the upcoming phase of development, and launches of “significant new 5.5 million units annually products” and an aggressive when fully operational in marketing plan. “It’s ambi2017. Mexico President Felipe Calderón Hinojosa (left) and Pirelli Chairman and CEO tious, but when you have a Demonstrating the influMarco Tronchetti Provera unveil the plaque outside Pirelli’s new $300 million plant investment like this, ence Pirelli has in the Silao you need to think big,” he region and Mexican economy plant in Silao, Mexico. added. in general, Mexico President 45 days. This plant will allow us to Felipe Calderón Hinojosa was onTom Gravalos, PTNA vice president service customers that today we canhand for the May 31 opening cereof marketing, motorsports and originot supply.” mony. Calderón arrived at the event nal equipment, added, “We would like The plant’s initial phase – the curvia helicopter, touching down adjato set a new standard in the way rent 135,000-square-meter building – cent to the factory, where he met Pirelli launches products. We’ve Pirelli executives and unveiled a cere- is part of a $300 million initial invest- invested hundreds of millions of dolment. Pirelli said another $100 milmonial plaque alongside Pirelli lars in the Silao plant; it would be Chairman and CEO Marco Tronchetti lion will be spent by 2017. The facilifoolish of us not to spend the last few ty will employ some 1,000 through Provera. million to close the loop and get the 2013, with additional hiring bringing The factory fits with Pirelli’s premimost out of this investment.” employment to 1,800 in 2017. um strategy, according to Tronchetti While Pirelli officials were tightPirelli said the new plant “will aug- lipped on the details of any new prodProvera, who said that while the tirement the factory the group already maker holds a premium reputation ucts, they did offer a time frame: an has in Rome, Ga., specialized in prowhen it comes to R&D and product announcement will coincide with the duction using MIRS technology.” performance, Pirelli must improve its return of Formula One to the U.S., at With the new plant, Pirelli’s North service in order to meet growth goals. November’s F1 race in Austin, Texas. TR American production in 2015 will be By providing a shortened supply Denise Koeth, Managing Editor chain and increased capacity, the Silao 3.9 million tires, rising to 5.9 million dkoeth@babcox.com pieces in 2017. The new plant also plant will do just that for North
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TOP SHOP Profiles 28
Shana O’Malley Contributing Writer
TRIED AND TRUE Loyalty, Familiarity Add Up For Chicagoland Dealer
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ith only four locations in the suburban Chicago area, Duxler Complete Auto Care might at first appear to be a small fish competing in a very, very large pond. But the family-owned dealership has built a band of loyal customers as solid as the work it guarantees. Although the company was established in 1920 by the Duxler family, the Moak family has been running the operation since 1983. “My Dad (Glenn Moak) bought the company in 1983, so next year is our 30th anniversary,” explains Brian Moak. “Basically when he bought it, it was one store and we’ve now broadened to four. He ran and owned the company by himself from 1983 through 2009, and in 2009 I bought the company from him.” Prior to the 1983 purchase, Glenn Moak worked as an employee for Duxler for a number of years. To this day, the Moak family credits the Duxlers for a large part of their success and even kept the original Duxler name to honor the family and the customers who have trusted the brand for decades. “It was something we decided to do for two reasons,” says Brian. “First, the Duxler name was so prominent in our area that we thought we might be losing something if we changed it. The larger reason is that my father felt so loyal to Woody Duxler for taking him under his wing, for teaching him and for giving him a shot, that for him it was kind of a tribute to that man and that family.” Loyalty is a theme you see throughout the company, from the ownership to the employees to the customers, and Brian says the strong relationships stem from treating everyone as
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if they’re friends and family. “We are like the ‘Cheers’ of the tire business,” says Brian. “When you walk in, we know your name, your significant other’s name, your kids and your dog. It’s not just about fixing your car, we are a relationship company.” When it comes to helping customers, Brian says they avoid “sales pitches” and try to stick to the talk-
biggest pet peeve I have. We have a back and fourth conversation with our customers. We take them into the shop and show them what we’re doing and why we’re doing it.” Brian adds that they explain to customers what their cars could use now, as well as what they should expect over the next 3,000 miles or 6,000 miles to prevent expensive repairs.
ing points that busy customers want to hear, such as how they can save money and how they can prevent a problem. “I played in the tires since I was two years old, so I grew up on the same side of the counter,” says Brian. “I’ve never experienced being a (tire) customer, but I have experienced being a customer when the plumber or the electrician comes to my house and I know how it feels to have someone talk at you. That is the
“They want to know if they’re driving their kids to school or driving to work everyday that the car that they’re in has been maintained. It’s a lot less expensive to maintain a car than it is to repair one.”
Employee Loyalty Not only are customers getting an accurate report, they’re hearing the facts from technicians who have been in the business for years and have earned their confidence.
In order to get new employees up to speed quickly, Duxler has a specific training method that has worked for decades.
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working with maximum efficiency, Duxler provides intensive and extensive training and the latest service equipment. “We believe in making sure our people are as well-equipped as possible,” says Brian. “That means training and that means equipment, which means accessibility. Whatever they need, we really try to accommodate, whether it’s personal or business.” In order to get new employees up to speed quickly, Duxler has a specific training method that has worked for decades. “We start someone off with the basics and let them work side-by-side with experienced techs and, as they grow, we closely monitor their growth and we start giving them jobs that might be slightly over their capability level,” explains Brian. “Then, we tag on somebody who has the capability to do the job and they teach them. We call it the ‘Duxler way’ and it works really well.” On a busy day, the four Duxler locations turn over approximately 200 cars on average, leaving no room for error. “We do everything from tire repair and replacement to oil changes and even replacing engines,” says Brian. “A lot of our focus is mechanical service. We do about 35% tire sales and 65% service, and we’re high volume stores.”
Back Office Software: Custom database, Quickbooks
Modern Methods
“I think what makes us different and separates us from the rest of the pack is that we have salary-based employees and we have employees who, once they’re here, don’t leave,” says Brian. “That’s our biggest asset and the thing that we care most about is the people who work for this company. In a way, this has become an extended family.” Duxler Complete Auto Care has 49 full-time and four part-time employees, many of whom have been there for decades. “Our oldest employee is coming up on 28 years with us, and the second oldest is coming up on 25 years,” says Brian. “People who come here stay here, and that’s the backbone of the company.” To ensure their technicians are
Top Shop Specs Duxler Complete Auto Care Tire Brands: General, Continental, Toyo Tire Changers: Coats Tire/Wheel Balancers: Hunter Lifts: Rotary, Challenger, ALNM, Ammco Alignment Racks: John Bean Break Lathes: All Tool
Competing with the big box stores Rapid Response: 800-928-1184 ext. 40030
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and price sellers can be difficult, but Brian says they’ve always focused on providing quality work and exceptional customer service. “Our industry is not the ‘good ole days’ in the sense of when ‘word of mouth’ did everything for you,” says Brian. “In this economy, people want a deal. They’re looking at Duxler Complete Auto Care owner Brian Moak price and, a lot of times, stretching their budget. Sometimes price is more important than quality, and that has been a terrible hurdle for us because we have never been a price-driven place. We’ve always been fair, we’ve always offered exceptional value and we’ve always given customers the best quality product they can get at a fair market price.” To stay relevant among the competition, Brian says they use a mix of advertising, marketing, public relations and community involvement. “We own four stores and we’re part of four local communities, but we’re part of eight local chambers of commerce, we’re a part of Rotary Club and we’re a part of several other networking groups.” Charitable work has always been a major foundation of Duxler, and each year the company involves itself in an array of charitable and community organizations. “We have a handful charities that we make significant contributions to each year and we try to get as involved in everything as we can,” says Brian. “We sponsor baseball teams and football teams, and we recently sponsored a huge running race called The (Ricky Byrdsong) Race Against Hate, in which major corporate sponsors participate every year. We support a lot of women’s organizations and we sponsor conferences that promote women business owners.” While each day provides a different set of problems to fix and customers to manage, Brian says they take the work seriously while trying to make the most of the day. “People trust us with one of their most important assets and we take that very seriously,” he says. “But, we start off the day laughing, we deal with our stresses, we deal with our problem cars and tough customers, and we try and make light of everything that we can.” TR
Rapid Response: 800-928-1184 ext. 40032
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Rapid Response: 800-928-1184 ext. 40033
MANAGEMENT sales intelligence TIRE REVIEW and InteliChek present up-to-date tire and service price information from U.S. metropolitan areas. For this monthly feature, InteliChek directly contacts a selection of independent tire dealers, mass merchants and car dealers to obtain current pricing on replacement tires and vehicle services. InteliChek requests and verifies retail prices via phone calls, using specific Cedar Rapids, IA Market Period 6/1-11 Mass Mass Merch. Merch. A B
Tire Dealer A
vehicles, tire sizes and vehicle services. In that way, direct and useful comparisons can be made by readers. The tire prices shown in this report are for tires only, and do not include mounting/balancing or any add-on warranties or other services or fees. To allow for a more accurate comparison, the level of tire brand – Tier 1, Tier 2 and Private Brand/Other – recommended by
Tire Dealer B
Car Dealer
Avg. All
the retailer is noted. (See legend below charts.) The services chosen for these surveys include a standard oil change (oil plus filter), a standard four-wheel alignment and front brake work (replace front pads and turn both rotors). For more information on InteliChek, visit www.intelichek.com. TR
Denver, CO Market Period 6/1-11 Mass Merch. A
Vehicle 1 Oil Change/Filter $22.99 $35.09 $31.95 $29.17 $27.60 $29.36 Replace All: 215/60R16 $279.96*** $320.00** $468.00** $408.64** $540.00** $403.32
Vehicle 1 Oil Change/Filter Replace All: 215/60R16
Vehicle 2 4 Wheel Alignment Replace All: 225/60R16
Mass Merch. B
Tire Dealer A
Tire Dealer B
Car Dealer
Avg. All
$25.00 $33.26 $34.75 $32.95 $34.95 $287.96*** $287.92** $349.52*** $379.64** $652.00*
$32.18 $391.41
$90.00 $80.00 $89.95 $500.00* $455.64** $440.00*
$83.99 $414.30
Vehicle 2 4 Wheel Alignment Replace All: 225/60R16
$79.95 $69.95 $330.68* $422.40*
$77.97 $385.00
Vehicle 3 Front Brakes, Turn Rotors $160.24 $197.93 $180.00 $138.00 $155.13 Replace All: 265/70R17 $596.00** $715.96** $856.00* $715.04** $716.00*
$166.26 $719.80
Vehicle 3 Front Brakes, Turn Rotors $180.00 $140.00 $200.00 $250.00 $230.00 Replace All: 265/70R17 $663.96* $755.95* $656.52* $496.28*** $636.00*
$200.00 $641.74
$79.99 $79.99 $395.96** $279.92**
Grand Rapids, MI Market Period 6/1-11 Mass Mass Merch. Merch. A B
Tire Dealer A
Tire Dealer B
Car Dealer
Avg. All
$69.99 $79.99 $89.95 $423.96* $327.96** $420.00*
Newark, NJ Market Period 6/1-11 Mass Merch. A
Mass Merch. B
Tire Dealer A
Vehicle 1 Oil Change/Filter Replace All: 215/60R16
$33.20 $34.97 $33.00 $21.68 $9.95 $287.92** $288.00*** $420.00** $480.00** $716.00*
$26.56 $438.38
Vehicle 1 Oil Change/Filter Replace All: 215/60R16
Vehicle 2 4 Wheel Alignment Replace All: 225/60R16
$79.99 $74.90 $70.00 $69.95 $99.95 $608.00* $512.44* $411.28** $460.00** $428.00*
$78.96 $483.94
Vehicle 2 4 Wheel Alignment Replace All: 225/60R16
Vehicle 3 Front Brakes, Turn Rotors $160.00 $219.00 $200.00 $180.75 $180.00 Replace All: 265/70R17 $688.00* $796.00* $675.36** $640.00** $708.00*
$187.95 $701.47
Vehicle 3 Front Brakes, Turn Rotors $228.70 $190.00 $187.00 Replace All: 265/70R17 $1,083.96* $696.00* $753.52*
San Francisco, CA Market Period 6/1-11 Mass Mass Tire Merch. Merch. Dealer A B A
Tire Dealer B
Car Dealer
Avg. All
$75.00 $519.96*
Tampa, FL Market Period 6/1-11 Mass Merch. A
$24.99 $29.99 $20.00 $39.88 $520.00* $299.96** $480.00** $652.00*
$30.97 $489.59
Vehicle 1 Oil Change/Filter Replace All: 215/60R16
Vehicle 2 4 Wheel Alignment Replace All: 225/60R16
$99.95 $500.00*
$103.58 $452.99
Vehicle 2 4 Wheel Alignment Replace All: 225/60R16
$219.98 $691.94
Vehicle 3 Front Brakes, Turn Rotors $190.00 Replace All: 265/70R17 $535.96**
Vehicle 3 Front Brakes, Turn Rotors $300.00 Replace All: 265/70R17 $636.00***
$87.99 $70.00 $149.95 $395.96** $494.48** $434.56*
$199.95 $220.00 $796.00* $596.00* Legend
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$200.00 $179.95 $767.88* $663.80* * = Tier 1 Brand
** = Tier 2 Brand
Car Dealer
$37.00 $21.39 $25.95 $29.00 $29.95 $331.96*** $460.00*** $528.00* $440.00** $632.00*
Vehicle 1 Oil Change/Filter $39.99 Replace All: 215/60R16 $496.00**
$109.99 $439.96**
Tire Dealer B
$79.99 $95.00 $752.00* $372.00*
Mass Merch. B
Tire Dealer A
$89.00 $119.95 $387.80* $372.00*
$79.99 $439.80*
$89.95 $416.16*
$200.00 $159.95 $639.80* $663.28*
*** = Private Brand/Other
$28.66 $478.39
$91.79 $480.75
$160.00 $269.00 $206.94 $615.00* $1,028.00* $835.30
Tire Dealer B
Car Dealer
$36.00 $24.60 $29.95 $29.99 $35.95 $287.96*** $299.96*** $450.60** $304.00*** $640.00*
$69.99 $307.60**
Avg. All
$69.95 $356.00*
Avg. All
$31.30 $396.50
$89.95 $434.56*
$79.97 $390.82
$189.95 $159.95 $660.00* $716.00*
$179.97 $643.00
Rapid Response: 800-928-1184 ext. 40035
MANAGEMENT Selling Smart
Steve Ferrante steve@saleawayllc.com
BUILD FROM WITHIN Great Eight Practices for Creating a Winning Team Culture
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reating a “winning team corporate culture” is all about effectively managing your team members’ attitudes, behaviors and actions. Here are my great eight practices for creating a winning team culture that supports world-class sales and customer service objectives.
in the company, that no one is really listening and that their opinions don’t matter. Winning Team Cultures encourage information sharing and promote an environment of open communication where employees are comfortable contributing their feedback and ideas.
interactions. Managers should initiate contact with team members on a regular basis, both formally and informally. Taking time with employees to show an interest in their work, and listening to their issues and experiences demonstrates that you value their contribution and builds morale and motivation.
• Live “Winning Team” Every Day: Creating a winning team culture is not something that happens at the corporate headquarters behind closed doors. It’s in the stores, the service areas, the warehouse, and everywhere else employees interact with customers and each other. Managers need to be physically – and mentally – present in the workplace to consistently communicate the winning team message with employees, reinforce a commitment to excellence and promote continu-
• Unengaged Employees Don’t Create Engaged Customers: While this is more of an affirmation than a practice, it’s really important you keep this fact at the forefront of your efforts to create a winning team corporate culture. If employees are displeased at work, you can bet some of that displeasure is spilling over into their customer interactions. All of the following tips foster and build employee engagement. • Set the Bar: Do you have documented values and best practices that set standards of performance and state clearly what your organization stands for and what is expected of employees in order to achieve it? Remember, a goal without a plan is just a wish. Communicating your organization’s commitment to excellence through values and best practices ensures everyone is on the same page and that there is no confusion with your winning team culture mission. Establishing values and best practices is integral. • Demonstrate Care: A winning team culture can only survive and thrive in a caring and supportive environment. When employees feel like machines, not human beings, they become emotionally detached from the business and tend to go through the motions to get through the day. To build a winning team cul-
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ture, managers should always treat their team of employees exceedingly well. Do you treat your employees in a manner that is consistent with the way you want them to treat customers? Most managers do not, yet they expect their personnel to excel when it comes to positive customer
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• Communicate Well: Can you hear me now? Too often, employees don’t feel like they have a true voice
Managers should always seek out opportunities to acknowledge both individual and team efforts and celebrate jobs well done.
Rapid Response: 800-928-1184 ext. 40037
ous improvement for individuals and the company as a whole. • Be a Champion Cheerleader: Perhaps nothing builds a winning team corporate culture better than recognition. It’s amazing what can be achieved when people feel appreciated. Recognition and praise go a long way toward building positive team spirit and morale. Managers should always seek out opportunities to acknowledge both individual and team efforts and celebrate jobs well done. Make saying “thank you” a habit and always let employees know when they have performed well. This reinforces proper behaviors, builds your personal relationship and strengthens the culture. • Encourage Growth: The old adage fits here, “If you’re not growing, you’re dying.” It’s the same with employees and corporate cultures: they must move forward or they will deteriorate over time. Managers need to make progress a priority. Whenever possible, take the opportunity to encourage the next phase of employee and team growth. Engagement and productivity improve when employees know how they are doing and what they can expect in their future. • Have Fun: Okay, I admit it – this is my favorite one. As I discuss in my Pinnacle Performance training, having fun at work is a business strategy. It gets back to practice No. 1, unengaged employees don’t create engaged customers. There’s a reason so many market-leading companies are also considered to be the best places to work. They know happiness matters and they create a culture of fun in the workplace that improves employee morale and productivity. TR Steve Ferrante, CEO of Sale Away LLC, is the producer and host of the Pinnacle Performance sales and customer service training program for the tire/auto service industry. He can be reached at 866-7216086 ext. 701 or steve@saleawayllc.com.
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Rapid Response: 800-928-1184 ext. 40039
Rapid Response: 800-928-1184 ext. 40041
MANAGEMENT marketing matters 42
Brian Sacks Contributing Writer
MOBILE MARKETING Can Your Customers Find You Where They are Searching?
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hat is mobile marketing and why do you need to know about it? That’s a question I have been asked a lot lately. In this first column for TIRE REVIEW, I want to give you an introduction to the world of mobile marketing. My goal here is to provide you with some answers and insight about new and powerful ways to generate more business, both with new customers and repeat customers. In 2011, more mobile devices were shipped than laptops or desktop computers. You might even be seeing this trend yourself with your employees, family and customers. They all are on their phones or tablets, tapping away. A few weeks ago, while meeting with a group of shop owners, one of my clients told me this story: John Thompson had been walking around his shop wondering where all of these cars were coming from. His shop is located about a mile off the highway, and over the last 18 years most of his business had come from customers in his own town. Suddenly he was seeing cars he didn’t recognize, some with out-of-state plates. Yes, he always got a few travelers in the shop from the interstate, but that was usually during a few big summer months or holidays. So, where were these new customers coming from? John was stumped until one of his techs told him it was “from Google.” Of course, John was thrilled with the new business, and they were coming in consistently. But he was still having a problem understanding what “from Google” meant. For those of us raised on local newspapers and Yellow Page ads, “from Google” is the way most customers are finding you today. Over the past decade, we have witnessed a technologi-
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cal revolution. First we were able to find anything we wanted to know, from anywhere around the world. Then, as technology continued its inevitable march, we were able to communicate instantly with someone on the other end of the world – and even see them. The old days of just having a sign outside your shop or simply relying on word-of-mouth advertising are gone. The Yellow Pages are not nearly
searched for local information. • 61% of users call a business after searching, and 59% visit the location. • 90% of smartphone users act to make a purchase within 24 hours of doing a local search. • Nearly 50% of all searches are performed on mobile devices, and this figure is growing each and every day. But let’s take another look at these figures. If you look closely at the numbers, they suggest people searching for
as effective as they were just a few short years ago. Sadly, even your website may no longer be producing the results you had hoped for – or even the same results you got when you first launched it. No, there is a new media and we must pay attention to it. The world has gone mobile and you must go with it.
you on their mobile devices are more likely to be active, interested buyers. After all, why would they even take the time to search your business while they are out during their busy day? Think about it this way: Do you ever look for information about plumbers unless you really need one? The convenience – size and range – of today’s smartphones make them the perfect shopping tool. It’s like melding the Yellow Pages with the telephone, and then throwing a full-blown laptop computer on top for good measure.
Mobile Matters Check out these stats from Google: • 95% of all smartphone users have
People searching for you on their smartphones or tablets are more likely to be active, interested buyers – and they act on their searches.
Rapid Response: 800-928-1184 ext. 40043
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People using a desktop or laptop are able to type and search more easily and leisurely, so they may be more inclined to “shop around.” People searching for you using their mobile devices have an immediate need and just want to easily connect with you.
Take Advantage Step 1: Take out your cell phone. Today most phones are smartphones – iPhone, Android or BlackBerry. In fact, in a very short time, these will be the majority of phones in the U.S. and Canada. Step 2: Find your smartphone’s web browser. Step 3: Now type in the URL for your website and see what comes up. Here are a few things to look for: • Does your website also have a .mobi address? This is the newest domain that has been set aside specifically for mobile websites. • Using your smartphone, is your site easy to navigate, meaning can you get
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to the most important functions quickly and easily? • Does it load quickly when displayed on your smartphone? “OK,” you might say, “We have a great website, so why is all of this important?” There are a few reasons. The reality these days, according to Google, is that four out of every 10 online searches are being done using a mobile device (smartphones or tablets like the iPad.) Simply put, without a mobilefriendly website, you could be missing out on 40%-50% of the people looking for your business. But there are other reasons you need to pay attention to this. For example, many auto repair facilities are paying firms to make sure their website gets a high ranking when people in the local area are searching for them. Google recently stated it is penalizing companies that don’t have mobile websites by downgrading them in search rankings. What that really means is Google will have your ad appear farther
Rapid Response: 800-928-1184 ext. 40044
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down the page and will be charging you more per ad. Here’s a quote directly from Google: “As a result of this change, ads that have mobile optimized landing pages will perform better in AdWords – they will generally drive more mobile traffic at a lower cost.” [As a side note: Websites that use Flash animation will only appear as a blank page on iPhones and iPads, since Apple does not support Flash.]
Easy Connections On the next page are before and after pictures of a website. The “before” is how a business website would display on a mobile device. The “after” shows how a mobile-optimized website would appear. Which do you think customers would make better use of? Notice that in the “after” photo, there are only a few key options displayed, allowing your customers to easily and quickly connect with you. The important thing with mobile-friendly websites
Rapid Response: 800-928-1184 ext. 40045
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is to keep things easy and simple. We live in an instant gratification society and if your site doesn’t load quickly and make it very easy to connect, customers will simply go on to the next search result. The good news – and the bad – is that less than 10% of our industry’s websites are mobile-optimized, so there is still time for dealers to take advantage of this opportunity.
Consumers looking for your tires or vehicle services will most likely be searching on their mobile phones. And as you’ve seen, studies have shown that a majority of buyers will make a purchase within 24 hours of searching. Mobile device shoppers have an urgent need, unlike shoppers scanning their laptop for the best price. The question is: Can today’s mobile device users find your business when they need tires or service? Getting back to John and his effort to define “from Google:” After a while, John understood why his lot was full of out-of-towners. Those customers were searching for a tire or repair facility on their smartphones. When his customers typed in
Rapid Response: 800-928-1184 ext. 40046
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“Tire Store” or “Auto Repair,” John’s new mobile website showed up in the results. The site has a “click to call” button and a map so they can easily navigate right to John’s shop. Finally – it all made sense! There are several other components of a successful mobile marketing strategy, including mobile apps, text messaging, appointment reminder programs and, of course, mobile customer capture systems. We’ll cover all of these in future articles, but if you have any mobile marketing questions in the interim, email them to brian@trackableresponse.com and watch the next issue for your answer. TR Brian Sacks is a mobile marketing expert with more than 26 years of direct response marketing experience. He is co-founder of Trackable Response Inc., a mobile marketing provider to the tire and auto service industries, based in Catonsville, Md. Brian can be reached at brian@trackableresponse.com or 410-747-1100.
Want to REALLY Know Your Customers? 2011 Tire & Service Buyer Studies Available NOW!
Why Buy a MetroScan Study? Get Real Answers to Vital Questions • Why do tire buyers choose a particular retailer? • How does my dealership rate in the market? • Is my advertising connecting with consumers? • How do buyers view my store vs. the competition? • What is my real share of market? • How satisfied are my customers? • Does competition do a better job with customers? • Can I count on return business? • What specific things can I do to improve my future? Detailed 70-Page Custom Study Report
Out Market Your Market – Call MarketPlace Insights Now!
John Montgomery • 866-901-3147 • john@mpinsights.com
By Joanne Draus Klein Contributing Editor
Business Succession Plan W
hen Trey Cook’s grandfather founded Savannah Tire in 1951, he was forward-thinking enough to hire an estate-planning attorney long before he retired. Now that the eight-shop dealership is owned by Trey’s 67-yearold father, the Cooks already have planned the Georgia company’s transition to Trey’s generation – still using the same attorney Trey’s grandfather did decades ago. “It makes for a very easy understanding by all parties involved,” says COO Trey of his family’s particularly smooth, familial and time-tested process. But the Cook family’s experience has indeed been atypically smooth. Too often, business owners – human beings after all – are reluctant to think about the time they’ll cash out, either literally through retirement or figuratively to that big ol’ retirement home in eternity. Many put off suc-
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cession planning and wealth-preservation strategizing until it’s either too late, or later than is ideal. Financial advisors warn that today’s economic uncertainty is only exacerbated by such delays in business estate planning. They also caution business owners against feeling falsely secure just because plans have been made to pass along a company within a family without a sale. The tax ramifications can still be huge. So, once mortality – or at least retirement – have been acknowledged, what should tire dealers do to successfully pass along their business, as well as preserve their wealth? TIRE REVIEW interviewed three experts – a business-wealth transferplanning specialist and author, a continuing- and executive-educator in the field, and a philanthropy architect – to gather their wisdom on the topic. Here is their advice.
Family Matters Karl Bareither has spent half a century helping families with the legal, tax, financial and relationship issues relating to the transfers of their businesses. The Avila Beach, Calif.-based transfer-planning specialist calls his approach holistic, since it deals with what he considers to be four intertwined aspects. From the commonalities he found in those 50 years of work, he wrote two books on the subject: “Planning a Family and Business Legacy” and “Becoming a Wealth Transfer Specialist.” “It’s my attempt to assist family businesses to learn from others how they both failed and succeeded to pass on their family-business wealth,” he says. “Planning is a journey, not a destination.” The business-legacy book, Bareither explains, presents “deplorable statistics” surrounding poorly transferred wealth and
encourages business owners to not delay in creating succession plans. It also tells readers to avoid potentially disastrous secretive plans by having a trained specialist conduct individual meetings with each family member and key non-family employees, possibly concluding with a family retreat to review the final plan. Not only does this process promote family communication about a potentially touchy subject, he says, but it also maximizes profitability and minimizes the role of the Internal Revenue Service. “It redefines wealth as more than money or property and includes healthy family relationships as a legacy beyond financial wealth,” Bareither says. “It redefines the client as the entire family rather than the current principal business owner.” Bareither says he has clients consider several questions before establishing a family-based succession plan:
• Are family members ready to assume control, or will key nonfamily employees be able to run the company effectively? • Would the value of the business be better protected by the sale of the business to a nonfamily member in order to better achieve family objectives? • Will the business owner be able to retire and keep the family business intact? • Does the business owner have an adequate retirement established? “And if you want to leave a legacy,” he says of another important consideration, “evaluate the buyer to determine if the quality of service will continue to meet your standards.” Eagerness to simply accept the highest bidder when selling a business, after all, is widely recognized as a potential mistake in legacy
“It’s a family affair, not an owner’s affair; it’s a process, not a transaction; it’s an open agenda, not secretive; it deals with both internal and external matters; it should be objectively facilitated, not a free-for-all; it’s an examination of issues, not a whitewash; and a business’s greatest resource isn’t a shop, equipment or real estate, but people.” -Karl Bareither, Transfer-Planning Specialist planning. Other issues, from the continuation of corporate culture to a buyer’s financing choice, need to come into play. Some small-business owners even choose to avoid buyers altogether, as family transfers can be tax savers. But Bareither advises that business owners become “aware of changes in tax law that will affect their ability to transfer their business interests with the least amount of IRS interference,” he says. “Tax laws change from time to time, and business owners need to be aware of these changes in order to modify current planning.” Bareither also reminds clients that if a business is owned by more than one person, a written businesscontinuation agreement should be executed, in case disability, illness, accident or death befalls one of the owners. He says it should reflect the true current value of the business, as determined by a licensed appraiser, as well as its potential future value. Not only does a realistic appraisal result in a cleaner transfer in the case of an owner death, it also prevents the need for a revamped retirement for those owners who simply leave the working world, as many retirement plans are based on bad valuations. And bad valuations are just one of the glitches that may occur in the succession process if a dealer’s advisors aren’t qualified. Keeping things in the family doesn’t mean hiring Uncle Louie to do the deal. Some experts even suggest that multiple interviews be conducted with multiple candidates when seeking legal counsel and other professional serv-
ices to avoid missed business opportunities. Bareither says that qualified experts also can be located through trusted referrals. In addition to an objective, independent and experienced business-estate planning attorney, those experts might include an accountant, a life-insurance agent, a financial advisor, a licensed appraiser and even a family system specialist when matters of business distrust arise. “I think it’s important to contact all trusted advisors and encourage them to work as an effective team,” he explains. By doing these things, Bareither says, tire dealers may come to understand what he considers to be the principles of successful succession planning: It’s a family affair, not an owner’s affair; it’s a process, not a transaction; it’s an open agenda, not secretive; it deals with both internal and external matters; it should be objectively facilitated, not a free-for-all; it’s an examination of issues, not a whitewash; and a business’s greatest resource isn’t a shop, equipment or real estate, but people.
Open Up and Let Go As with many family matters and communication issues, however, openness in succession planning can be tough. Brian Cruickshank believes it can indeed be the most difficult part of the process. “For small-business owners, the sharing of information can often be the hardest step,” says the director of Northwood University’s University of the Aftermarket, a continuing education program for vehicle aftermarket
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executives in Midland, Mich. “In many respects, the owner is the business. They make all the decisions. They have all the contacts. They know the details of the business and tend not to share this information with anyone. However, this information must be shared with those who will ultimately take over the business someday. “When you create a business that’s dependent on the owner, you do two things,” he explains. “First, you limit your growth. A personality-dependent business only runs at its best when the owner is present. These kinds of owners feel like they can never take a vacation because they feel like they need to be there. “The second issue, the one that relates to succession planning, is that such owners tend to keep all the information to themselves. If there were ever a problem, who would know what to do? Sharing of information – not only the day-to-day operations, but the larger issues – is critical to creating a business that can survive.” Some experts also attribute lower company sale prices to owner-dependency, saying potential buyers may see such businesses as high risk. And the emotional impact of selling or transferring a business can be overwhelming enough without over-attachments of purpose and self, which have been known to result in downright irrational behavior during transfer negotiations and beyond. Some owners simply can’t let go. So, how can tire dealers avoid these pitfalls and begin the process of openness and successful transfer? “To get the ball rolling, talk to your attorney and financial advisor,” Cruickshank says. “Then start thinking about the kind of person you’d like to run the business, remembering that they may not be just like you. “What kind of person would I feel comfortable with running the business, and is there someone already here who meets those criteria?” he says, listing questions that should be asked. “Do my children have the same passion that I do for the business? They don’t always. Do my children have the aptitude to run the business? Rapid Response: 800-928-1184 ext. 40050
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They don’t always.” Once a dealer has come to terms with his or her expectations for the dealership’s legacy, Cruickshank says a trusted attorney and accountant can delve into the details. “Many of the business-transaction issues should be discussed and put in a document before a problem like death or illness arises,” he says. Among the legal documents created to help define a business and plan for its future are realestate trust entities, limited liability company entities, operating agreements, articles of incorporation and last will and testaments. As for the nation’s current economic state, some experts say today’s lower valuation rates actually may provide a tax benefit to planning ahead and taking action. If a business is valued at $10 million today, for example, waiting until it’s valued at $20 million can result in a higher gift tax for those who transfer interests in the company. Cruickshank, however, says the economy shouldn’t play too much of a role in a dealer’s succession considerations. “Economic realities really have no bearing on whether a business plans for succession,” he says. “It certainly might impact the valuation of a business, but those details are the sorts of things that get sorted out later. Finding the right person and putting a plan in place, those are the sorts of things that can be done in good or bad economic times.” Cruickshank’s best advice? It’s simple: “Do it now.”
Symbiotic Strategy Dan Rice considers himself a philanthropy architect. It’s an intriguing title that applies to both his work with Convoy of Hope, a global charity based in Springfield, Mo., as well as his expertise in charity-based smallbusiness succession planning. But his two roles go hand-in-hand. “First, let’s agree that, for most business owners, the essence of succession planning is being able to keep and continue the business in the family,” he says. “The process to successfully complete a succession plan focuses primarily on two cans of worms: the transfer of the legal ownership of the
Rapid Response: 800-928-1184 ext. 40051
“Remarkably, the small-business owner today has the greatest range of options, processes, techniques and tools for conducting their succession plans than at any other time in recent memory.” -Dan Rice, Expert in Charity-Based Small-Business Succession Planning business and the transfer of management control. Importantly, the good news is that the timing of these two types of transfers may be extremely different. “The charitably-minded client can consider transferring their business ownership to the next generation using…a charitable remainder trust, a charitable lead trust or a private family foundation,” he adds. “The children can still work in the business and develop their management competence and confidence while waiting to receive the stock ownership in the business.” That’s when the symbiosis between the two concepts begins.
“Interestingly,” Rice explains, “in many cases the money that would have otherwise been paid out to the IRS in the form of income taxes, capital-gains taxes, gift taxes or estate taxes can instead be given to the owner’s favorite charitable organizations or to the family foundation. The foundation can also be one of the owners, too. “If you began to put your succession plan into play and you knew there was going to be a tax hit that goes with it, and you had a choice between paying those taxes or giving away that money to your favorite charities, what would you say?” he asks. “In many cases, it’s wise to take the extra time to compare
Rapid Response: 800-928-1184 ext. 40052
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what is left over for you in the way of discretionary income if you decide to include or exclude charitable gift planning. “Usually, the tax threat occurs when the business owner will be realizing a capital gain from a profit-generating transaction,” Rice says. “Instead of having to recognize the entire capital gain, when you sell stock or other assets for a profit, you can avoid paying unnecessary capital gains taxes by giving to charity that portion of the stock or other assets equal to the value you were planning to give away already.” But given today’s economy, is the charitable approach to tax savings feasible? Rice resoundingly says yes – but not for long. “For those people who are still jammed up with succession-planning paralysis, it’s time to recognize that it would be hard to find a better time to get unstuck,” he says. “Remarkably, the small-business owner today has the greatest range of options, processes, techniques and tools for conducting their succession plans than at any other time in recent memory. That’s chiefly because the federal gift tax, estate tax and generation-skipping transfer tax rates are the lowest, and the related exemption amounts are at an all-time high. The catch, however, is that unless Congress takes action, these tax rates will increase, and all exemptions will decrease dramatically beginning Jan. 1, 2013. “For example,” Rice hypothesizes, “if a business owner took action now and completed their succession plan in 2012 by transferring ownership of their business to their children, the business owner could remove up to $5.12 million, or $10.24 million for a married couple, of their business assets out of their estate, free of gift and estate taxes.” But what if the business owner still has concerns about giving up control over the management of the business in 2012? “Savvy business owners understand the difference between ownership of a business and control of a business,” he explains. “For example, if I give my daughter 99% of the stock in my busi-
Rapid Response: 800-928-1184 ext. 40053
Rapid Response: 800-928-1184 ext. 40054
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ness in the form of non-voting stock, and I keep the remaining 1% of the stock in the form of voting stock, I still get to call all of the shots. Period.” Rice apparently is in agreement with Cruickshank and Bareither about the difficulties many business owners have with simply letting go. But he also offers solutions. “Perhaps the greatest concern is a fear of losing control,” he echos. “However, when a cautious business owner is contemplating including a charitable trust or foundation as one of its business owners, he or she can also choose to serve as the trustee of the charitable entity and retain legally permissible control over the stock held by the charitable entity. Business owners can also give non-voting stock, or stock subject to buy/sale agreements and also attach rights of first refusal on stock redemptions. These arrangements and others can enable business owners to give stock confidently to these entities. “Plus, there is substantial flexibility in how the stock can be subsequently owned or transferred or redeemed or sold by the charitable entity,” he adds. “Business owners might find it comforting to know that the two largest and most valuable gifts transferred each year to charitable trusts, foundations and organizations are gifts of family-owned business stock and real estate.” So, if a dealer chooses the charitable route to succession planning, how should he or she begin the process? “A tire dealer who is also involved in regular charitable giving should consider giving a planned-giving
expert a seat at the table,” Rice says. “Each year, many very wealthy business owners who can afford the best advisors pay enormous amounts of capital-gains taxes and also make significant charitable gifts, according to the annually published ‘IRS Statistics on Income.’ The dealers’ professional advisors have their heads down and are focused entirely on their areas of expertise. The benefits of giving assets like stock instead of cash are overlooked. A philanthropy coach can help dealers save taxes, without the dealers having to give more than they had planned to. It’s just a matter of giving a different way. “Fortunately, if the business owner is already actively giving to charitable organizations and at least one of them is a larger charity listed in the Philanthropy 400, it’s a safe bet the charity will have a planned-giving department that can help,” he adds. “Another resource is the Partnership for Philanthropic Planning, an 8,000member organization that can help the business owner wherever they’re located.” Regardless of the tactics used, Rice strongly suggests considering the charitable approach. “Don’t leave sensible and complimentary charitable-planning options on the table, especially when they can yield significant leftover discretionary income for you while allowing you to have an indisputable choice between paying avoidable taxes or making meaningful charitable gifts – from capital you’re not going to be able to keep for yourself.” TR
Rapid Response: 800-928-1184 ext. 40055
IQ Tires
Denise Koeth, Managing Editor dkoeth@babcox.com
PICKING UP SALES Skid-Steer Market on the Rebound as Construction Restarts
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he versatility of skid-steer loaders opens the door to a wide array of potential tire customers. From construction, farming and forestry to landscaping and snow removal – and many, many areas in between – the applications for the hardy machines are nearly endless. Yet despite such application diversity, tire dealers who participate in this niche segment can keep skidsteer customers coming back by offering some general knowledge and mastering a few overarching strategies. As with many tire segments, the skid-steer tire market reached a peak in 2007 and early 2008, right before the economic downturn, according to Robyn Conrad, ag marketing director for Michelin North America. “As with many products, the skidsteer tire market, as well as the equipment market, dropped rapidly,” she says. “However, a rebound has begun and the market is gaining some strength.” Conrad adds Michelin expects the market will continue to grow, though not at the pace of the early 2000s. She cites a recent Bloomberg report that stated builders broke ground on more single-family houses for a third consecutive month in May and rising construction permits pointed to further gains, showing the residential real estate market is weathering the U.S. economic slowdown. Roger Johnson, strategic accounts manager for Carlisle Tire & Wheel Co., also points to the uptick in housing starts and construction recovery in general as important indicators of the health of the skidsteer market in coming years. In addition to economic hard-
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ships, “the countervailing duties on China-produced tires also caused considerable turmoil in the market since their enactment in 2008,” Johnson explains. “The net result has been a shift to tire production in Asian countries other than China and only a small increase in U.S.-produced tires.”
While Mehta notes the market still is predominantly bias ply and low price segment, there is a shift occurring. Hugo Morales, product marketing manager for Michelin’s mining segment, says the newest advancement in skid-steer tire technology is radial design. He adds Michelin’s Bibsteel
As construction rebounds following the economic downturn, sales of skid-steer loader units – and tires – have seen an uptick.
He notes Carlisle is continuing to increase its U.S.-based production in its new plant in Jackson, Tenn. Globally, the skid-steer market is growing fastest in “developing countries and countries whose economies are doing well,” says Minoo Mehta, director of commercial tire marketing for Hercules Tire & Rubber Co., who adds that at this time there are no shortages, with supply amply meeting demand.
combines radial technology, steel belts and steel sidewall construction, allowing the tire to last “at least two times as long as bias technology, depending on the situation.” In addition to radialization, there also has been movement toward foam-filled or solid tires. According to Charlie Cohen, who co-owns Bensenville, Ill.-based Industrial Tire Solutions with partner Mike Pollini, today’s solid tires are comprised
Skid-steer machines themselves are trending toward even more versatility, with new tools and attachments for specialized use.
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under the tread for reinforcement; extra deep treads; and chip- and cutresistant tread compounding. Skid-steer machines themselves are trending toward even more versatility, with new tools and attachments for specialized use. Carlisle’s Johnson says, “Regularly being introduced are new tools that add to the versatility of the machines. For example, you almost never see a man with a jackhammer breaking up concrete at a construction site anymore. This work is now most often done with a skidsteer with a ‘breaker’ mounted on its boom. These breakers are bigger and more powerful, and thus much more productive.” either of a tire molded to a wheel as a one-piece assembly, or press-on types that fit onto a customer’s OE flatbased wheel. “Many have tough ‘mining grade’ rubber compounds, which offer extremely long wear and a soft ride,” Cohen says. “Some of these solid tires
claim to offer up to two to three times the wear of a pneumatic or foam-filled tire.” Hercules’ Mehta adds that several other innovations also play a part in today’s skid-steer tire technology, including reinforced body plies; a “recap dam,” or additional belt ply
Rapid Response: 800-928-1184 ext. 40058
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Customers and Service As varied as skid-steer uses are, tire customers in this segment generally seek the same attributes: “Most skid steer customers look for a tire that will give them value and life in the long run,” Cohen says.
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That often boils down to reinforced sidewalls, the ability to fight lug tearing, a strong casing for retreading, a robust appearance and price, according to Mehta. Higher hour users and large scale operators generally seek premium tires that offer added traction, life and uptime, Johnson explains, while “value” tires usually are ideal for lower hour users, individual operators and used machine buyers. “On the premium end of the market, the tires are becoming increasingly heavy in order to carry larger loads and provide a longer life,” he notes. Additional features skid-steer users seek in a tire include better stability, a smooth ride and turns, even tread wear, and a compound that prevents the tire from leaving marks on surfaces like concrete, Michelin’s Conrad says. “Owners of skid-steer loaders look at how the tire can benefit their unique operation,” she adds. “If the tire fails, the operation
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stops and that costs the owner money. The more hours the machine is working, the more revenue the skid-steer creates.” When servicing skid-steer clients, tire dealers should note that replacement situations take two forms: planned and unplanned. “Replacement for wear is often planned and the customer has some time to think of what he wants in a tire,” Carlisle’s Johnson says. “However, often tires are damaged in a variety of ways, the purchase is unplanned, and replacement is needed immediately.” In order to address unplanned replacements, Cohen advises that dealers stock the most popular sizes during the early spring and into fall in snowbelt areas, as well as utilize wellstocked, nearby warehouses. “Skilled service technicians, competitive pricing and perhaps a ‘good, better, best’ pricing structure also may help, as there is plenty of competition in most markets,” he says.
Michelin’s Morales says dealers must keep in mind they are selling the ability for the skid-steer owner to increase revenue. “The more the machine runs, the more revenue the skid-steer owner makes,” he explains. “Dealers should realize they are business partners with the skid-steer owner and should advise the right product for the right application, which equals high performance, repeat business – and most important, the trust and confidence of the skid-steer loader owner.” Hercules’ Mehta adds that to stay on top of sizing trends, dealers should take note of “the OE fitments of today that will be replacement demand for tomorrow.” The skid-steer market’s slow but steady growth, combined with a wide range of potential customers, offers ample opportunity for tire dealers to grow their bottom line. TR
Rapid Response: 800-928-1184 ext. 40059
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IQ Service
Andrew Markel Contributing Editor
PERFECT BRAKES? Carbon Ceramic Rotors Boast Many Advantages – and a High Price Tag
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ould you spend $8,000 to $12,000 for an optional brake package on your next vehicle? What if I told you they would never fade, would improve gas mileage and maybe need a change every 180,000 miles? Ceramic composite or carbon ceramic brake rotors and pads offer these advantages – and more. While it may seem like these systems are untouchable like some supermodels, this expensive option on some high performance vehicles could be the brake of the future – if the cost comes down. Ceramic composite rotors are extremely durable. In fact, manufacturers claim that they’ll never need replacement – at least with “normal” driving. They’re also resistant to the kind of distortions and wear that lead to pedal pulsation – merely an annoyance in the “real world,” but a noticeable performance issue on the track. The brake discs are formed from a specially treated carbon-fiber compound that is silicated in a highvacuum process at higher temperatures than any stop could produce. Not only are the resulting discs much harder than standard discs, they are more resistant to heat. The process used to produce the discs for CCB is complex, time-consuming and costly when compared to cast iron. The carbon fibers are blended with a resin of carbon and silicon. The mixture is pressed into a mold to create the basic disc shape, including its internal cooling vents. Using heat up to 3,000º F, the resin is converted to silicon carbide, a material nearly as hard as diamond. This is the “ceramic” in “carbon ceramic.” If you tried to machine these rotors, you would need diamond
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tipped bits in your brake lathe. The low thermal expansion of the brake discs prevents deformation under heavy braking. Furthermore, the ceramic brake discs are totally resistant to corrosion and offer more favorable noise-damping properties.
Advantages Because of their exceptional performance in extreme conditions, ceramic composite brakes were developed for use in high-level motorsports competi-
Ceramic composite brake discs have an extremely hard surface that provides consistent frictional values throughout the deceleration process, even in braking from extremely high speeds and at high operating temperatures, such as those generated from repeated braking. But the system also provides benefits in low-speed situations. In the event of an emergency stop, the technology does not require heavy pedal forces or outside technological boosting assistance to achieve maximum and immediate stopping force. With cross-drilled discs and pads that are resistant to water absorption, the ceramic composite brakes provide superior response in wet conditions, as well as dry. Because of their hard surface and immunity to salt corrosion, Porsche Ceramic Composite Brakes have an extremely long operating life.
Service Life tion. Porsche was the first automaker to apply them for road use, with Porsche Ceramic Composite Brakes included as standard equipment in the Porsche GT2 and Carrera GT and as an option in most other models. Ceramic composite brake discs provide a 50% weight savings compared to conventional metal discs. This reduces unsprung weight, enhances shock absorber response and vehicle handling, and also improves fuel efficiency and contributes to reduced emissions.
Porsche Ceramic Composite Brakes have been on the market for almost 10 years. There have been no recalls or lawsuits. With some complaints on low speed noise, Porsche’s advice is to warm them up. The only real complaints with the ceramic disc have come from weekend racers who experienced cracked discs due to extreme abuse. Porsche’s advice is to check for cracks before they head out to the track. With the replacement costs of four discs and pads reaching more than $20,000, many are switching to cast iron rotors and semi-metallic pads. TR
This expensive option on some high performance vehicles could be the brake of the future – if the cost comes down.
Rapid Response: 800-928-1184 ext. 40061
Scott “Gonzo” Weaver Contributing Writer
BOOSTED BRAKES A Look Back at the History of Power-Assisted Brakes
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ince we are talking brakes this month, let’s do a little comparison of the most popular brake systems that brought us from the days of dragging a flat plate against the wagon wheel or mashing your foot down on a mechanical linkage arm that eventually either slowed the car down or gave you one really strong leg. What I’m talking about are the power-assisted brake systems we find on modern cars and trucks. These days, we don’t even consider power brakes as something that needed inventing, but merely a standard feature that we now come to expect out of our daily transportation. Well, you may not have heard the term in a while, but “power brakes” had to start somewhere. Probably the first place to look is what got it all started: Pascal’s law of hydraulics, the law of fluids in motion and how they can be used to increase force. Pascal’s law states that when there is an increase in pressure at any point in a confined fluid, there is an equal increase at every other point in the container. It took Pascal to open our eyes to what could be done “hydraulically” with a fluid. Around 1918, a young inventor took the Pascal idea and applied it to brakes. His name was Malcolm Lougheed (later he changed the spelling of his name to Lockheed). In 1921, the Model A Duesenberg became the first car to have hydraulic brakes. Although they were not power assisted, the effectiveness of the brakes was well noted, compared to the mechanical brake systems that were common at the time. In the early 1920s, Pierce-Arrow became the first carmaker to take
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Pascal’s basic theory and add a vacuum assist to the hydraulic brake system. This inventive way of assisting the driver while braking is now part of our everyday driving experience. We don’t even call them “power brakes” anymore. In 1938, there was a car called a Tincher that used air assisted brakes,
As you apply pressure to the brake pedal, the fluid pressure is increased (Pascal’s law) to a slave cylinder and the individual wheel cylinders. As more pressure is applied, the added pressure overcomes a sliding valve that then pushes a triangular arm that, in turn, rotates valves to close an atmospheric valve and open
but wasn’t really considered a powerassisted system.
a vacuum valve. This vacuum valve then pulls the vacuum air into a large chamber that pushes a large bellow against the valve in the slave cylinder, tripling the available fluid pressure to the wheels. Get all that? The harder you pushed on the brake pedal, the more the bellows pushed the fluid toward the wheel cylinders. As you let up on the pedal, the internal valve started to close, lowering the vacuum pressure until it reached atmospheric air pressure. Last year, I restored a 1956 fire/rescue truck. One of the things I had to go through completely was the brake
Hydrovac Starting in the early 1940s, one of my favorite types of brake systems to study is the hydrovac brake system. If you’re a connoisseur of mechanical things, this is one you’ll need to get close with. Explaining this brake system is an Olympic event. In my book, it’s one of the true “mechanical” marvels of the brake world. At first glance, there are so many things going on at the same time that it looks like it shouldn’t work, but it does.
We don’t consider power brakes as something that needed inventing, merely a standard feature we now come to expect out of our transportation.
Rapid Response: 800-928-1184 ext. 40063
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the windshield. But the thrill for me is still watching the action of the internal parts of this mechanical marvel. If you would like more information on this system, there are several videos and informative sites on the Internet. I also found an early 1950s military training video that explained it all in detail.
Hydroboost
system. I’m still amazed at how this brake system works. For nearly 30 years, this was one of the most common brake systems on most large trucks and some cars. To this day, you can still find the hydrovac system used in certain applications. In fact, rebuilt units, rebuild kits and refurbished compo-
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nents are still available. As long as this system has a good supply of vacuum and clean fluid, the power brake system will do the job. Stand on the brake pedal with a lot of force and I’ll guarantee you it will put the stop on those brake shoes with a crisp jolt that can throw you up against
The next system is a hydroboost system. The big difference between this and the hydrovac system is the fact that there is no vacuum used to operate the “power” in the power assist. Generally, the power was generated by the power steering pump. In some cases, an electric motor applied the needed power to increase the pressure on the brake fluid. In these systems, when the pressure is applied by the brake pedal, a port in the master cylinder allows the higher pressure of the power steering system to aide in the overall pressure of the brake system. This is a great system for the hobby-
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ist who wants a clean look or doesn’t want the bulky vacuum unit under the hood. I also see this type of unit on larger delivery trucks and commercial units. Having less parts to be concerned with vs. the hydrovac unit makes this a very reliable system. Today, you can find these units on some production cars, delivery vans, large trucks and commercial vehicles. If space is at a premium, the hydroboost system is a good choice for that special project car.
Vacuum Boost Vacuum boost power brakes are by far the most popular type of assisted brakes. As with the last two examples, the idea is to apply additional pressure to the brake fluid, allowing less effort from the operator. Vacuum brakes do not need a slave cylinder to add the extra push or a power steering pump to apply the pressure – just good, old intake manifold
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vacuum. (Some diesels and small output engines used a belt-driven vacuum pump.) The principle is the same in each case, but the cost-effective vacuum booster wins out on average vehicles. It’s a simple system that’s effective and downright reliable. The main principle behind vacuum boost brakes is to take atmospheric pressure and vacuum air and move one to the other. Since the “atmosphere” wants to always balance the pressure, the vacuum is the “lack” of atmosphere air. So, as the plunger is pushed, a valve opens, allowing the air to move toward the vacuum section, which is turned into the added force against the brake fluid. It’s impressive to think “air” is the real strength in the booster system. But it is. Think of it as wind moving from a high-pressure area to a low-pressure area: The larger the difference in “atmospheric” pressure, the more intense the wind. That speed is the key in making the vacuum booster so reactive to
the touch of the brake pedal. Mechanical things intrigue me; I love to see how they work and how they accomplish their tasks. These boosters are just a small part of what I find interesting in the world of automotive repair. The better I understand how any system works, the better I can make the right decisions on service and repairs. Now in the 21st century, we have regenerative braking systems, anti-lock brakes and stability control. Along with the old standards, there are even more brake systems to study and get familiar with. Keeping up with the changes is just another part of being a good technician in today’s world. While every day is another learning experience, I also think it’s a good idea to study the history of this automotive world. What’s old becomes new, but in a newer element. So when you see something that you believe is new and inventive, check the history books and you may find out that it’s not that new. TR
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IQ TPMS
Andrew Markel Contributing Editor
TPMS REVEALED Common TPMS Service Questions and Answers
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hat is one of the leading causes of TPMS sensor failure? Corrosion. Sensors or sensor stems can be damaged by corrosion from road salts, moisture, missing valve caps or galvanic corrosion. The use of dissimilar metals or non-TPMS components can result in galvanic corrosion, which may affect the sensor’s ability to read or transmit data.
Direct TPMS sensors can transmit data such as their unique sensor ID, temperature and pressure, battery life and other diagnostic information. Indirect TPMS sensors can only assess tire inflation levels. How long do the batteries in the sensors last? It depends on a variety of factors
on the dash that will illuminate when the ignition is turned to the “on” position. If this doesn’t work, try using the “learn and test” procedure with a TPMS tool. Remember, a snap-in valve-style TPMS sensor looks very similar to a standard tubeless tire valve. Always check the owner’s manual or turn on the ignition and look for the univer-
How many TPMS sensors are on the road? Today, there are more than 200 million TPMS sensors on the road. More than 35% of the sensors are now at least three years old. It’s been estimated that more than 9 million sensors will need to be replaced in the next two years. What percentage of the sensors and systems can “relearn” on their own? Less than 40% of vehicles can reset the TPMS light without special tools. However, many of these relearn procedures cannot learn new sensor IDs or can learn only one new sensor ID per relearn cycle. The other 60% of vehicles require an activation or combination activation/scan tool. What are the common standards for TPMS systems? There is no common standard for the TPMS sensors, with variations including frequencies, modulations, data structure, communications protocols, mechanical fitment and many other factors. While NHTSA mandates that the TPMS must warn the driver when a tire is underinflated by 25%, it did not specify any standards for sensors or the equipment. What type of information is transmitted by the TPMS sensors?
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including the sample rate, drive cycle of the customer and even the environment. If a sensor transmits the pressure every 10 seconds, it will not last as long as a sensor that transmits the pressure every 15 seconds. Some sensors may last as long as 10 years, while some may last only three to five years. How do I know if a vehicle is equipped with direct TPMS? All vehicles manufactured after 2007 will have TPMS and can be identified with a lighted universal symbol
sal TPMS symbol to determine if the vehicle has TPMS. What does it mean if the TPMS warning lamp becomes illuminated? When the TPMS warning lamp on the instrument panel illuminates while the vehicle is being driven, it means that the system has detected at least one tire with a pressure at least 25% below the accepted minimum inflation pressure for the vehicle. If the lamp comes on, the driver should inspect their tires and check the pressure as soon as possible. The
The grommets around the base and nut of the sensor must be replaced every time the sensor is removed from the wheel.
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lamp should extinguish after the tires are properly inflated. What does it mean if the warning lamp goes on and off? On cold mornings, the warning lamp may illuminate for a short period of time and then extinguish. This type of warning lamp response is likely caused by marginally low tire pressure that dips below the warning threshold overnight, but rises to an acceptable level as the tires heat up through vehicle operation or an increase in ambient temperature. What does it mean if the lamp flashes on and off and then remains illuminated? All TPMS installed on 2008 model year vehicles and newer are required to detect and warn the driver when the system is not functioning properly (malfunction indicator). For some TPMS, a system malfunction is indicated by a flashing of the low tire pressure warning lamp for a period 60 to 90 seconds, with the warning lamp remaining illuminated after the flash sequence. The flashing sequence, followed by continuous illumination of the warning lamp, will repeat at each subsequent vehicle start-up until the malfunction is corrected. What should be replaced when a sensor is removed from the wheel? The grommets around the base and nut of the sensor must be replaced every time the sensor is removed from the wheel. The material in the seals has a “memory” of where it was placed and the amount of clamping force. When the old seal is taken off the rim, it’s deformed and will not properly reseal if it’s retightened. Service packs provide the sealing components for each applicable sensor (clamp-in or snap-in) and can be replaced just as valve stems are today. Each time a clamp-in sensor is removed from the valve hole, the grommet, nut, nickel-plated core, cap and any other components supplied in the service pack should be replaced. Snapin sensors should also have their rub-
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ber insert replaced each time the sensor is removed from the valve hole. The inserts should be replaced just as a standard valve stem is today.
not the sensor – if it’s overtightened. The material of choice is typically aluminum. If the nut is over-tightened, it will develop hairline cracks.
There is a new valve core in the service pack. Do I really need to replace it? Every time a sensor is serviced, the valve core should be replaced with the valve in the service kit. The valve core is nickel-plated to prevent galvanic corrosion and to ensure integrity of the primary seal. To prevent galvanic corrosion, never use a brass valve core with an aluminum TPMS sensor. Instead, always use a nickel-plated valve core with an aluminum-bodied TPMS sensor.
Will tire sealants damage a TPMS sensor? Some tire manufacturers and TPMS sensor manufacturers do not support the use of tire sealants, while some tire sealant makers claim that there is no cause for concern. Still, most will say that the use of any liquid or tire sealant injected into tires equipped with TPMS sensors is not recommended and may cause the tire pressure sensors to malfunction. One manufacturer of sealants states: “…sealant may come in contact with the sensor in a way that renders the sensor temporarily inoperable until it’s properly cleaned, inspected and reinstalled by a tire care professional.” But, the producer also states that if the sealant is water-based, it will clean up with no adverse effects. TR
What is the torque value required for the nut? Typical torque values for the base nuts on a TPMS valve stem range from as low as 35 in.-lbs. of torque to as much as 80 in.-lbs. of torque. That’s quite a range. This doesn’t mean that any torque value within this range is acceptable. It means that the torque specifications for the base nut on one vehicle might require 44 in.-lbs., another might require exactly 62 in.lbs., yet another might specify exactly 71 in.-lbs., and so on. Don’t guess. Look up the torque specifications for the vehicle you’re servicing to make sure you use the correct torque. Why should the nut be replaced every time a sensor is serviced? The nut is made of a softer metal than the stem, so it will be damaged –
Rapid Response: 800-928-1184 ext. 40067
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IN FOCUS truck 68
Al Cohn Contributing Editor
NEW STANDARDS Following OSHA Truck Tire Mount, Demount and Inflation Procedures he U.S. Occupational Safety & Health Administration (OSHA) has issued new procedure standards that should be learned and considered by those individuals who mount, demount and inflate commercial truck tires. An inflated tire and wheel can be very dangerous if misused or worn out. These standards (No. 29, CFR Pat 1910.177) should be reviewed extensively with new dealership employees. It is very important that these standards are reviewed on a regular basis, not just during the first week after hiring the new employee. Training on these OSHA standards must include both textbook work and a full demonstration that the employee can perform the following key procedures: • Tire mount/demount and inflation/deflation • Wheel inspection • Using restraining devices • Handling of wheels • Inflating tires when mounted on a vehicle • Installing and removing wheels from vehicles • Where to stand (to remain outside of air blast trajectory) during and after inflating a tire
Tires must be completely deflated prior to demounting. Removing the valve core is required to ensure complete deflation. When you demount a single-piece wheel, it should always be done from the narrow ledge side of the wheel. Wheels must be closely inspected
Demounting Tires
Mounting Tires
Restraining devices – more commonly called “safety cages” – are a very important aspect of the OSHA rules when it comes to inflating tires. These safety cages must be inspected on a daily basis to ensure there is no cracking or corrosion, which can reduce their effectiveness if a tire/wheel assembly comes apart during the inflation process. These safety cages must never be bolted to the floor.
It is critical that the person inflating the tire should stay out of the wheel and air blast trajectory during the inflation process.
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nate tire damage; apply it to both tire beads and the bead seat areas to make mounting as easy as possible. Tires going on steel wheels should be mounted from the narrow ledge side of the rim. When a tire changing machine is used, the tire must be inflated only to the minimum
It is vital to train commercial tire service techs on the correct procedures when it comes to mounting, demounting and inflating tires; OSHA standards are a good starting point.
before a tire is mounted. You are looking for rust, cracks or bent rim flanges. The bead seat areas should be thoroughly cleaned.
Of course, you must verify that the wheel size is appropriate for the specific tire, and damaged or leaky valve stems must be replaced. A non-flammable certified lubricant will ease mounting and elimi-
pressure necessary to get the tire bead into the rim flange. A tire safety cage must always be used when inflating a commercial truck tire. The only exception is when the wheel is bolted on a vehicle while being inflated. It is critical that the person inflating the tire stay out of the wheel and air blast trajectory during the inflation process. Always use a clip-on air chuck with enough hose to ensure
Rapid Response: 800-928-1184 ext. 40069
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that the tire tech stands completely clear and away from the inflating tire. It is permissible to inflate a tire on a vehicle providing the tire has more than 80% of the recommended tire pressure. As with inflating in a safety cage, make sure that a clip-on air chuck and ample air line can allow tire techs to stand clear from the tire assembly.
Other Considerations Proper techniques for vehicle jacking and lifting (when changing tires on vehicles) are not included as part of OSHA standards, but are very important when it comes to safety and should also be reviewed on a regular basis. Every year there are many injuries associated with improper jacking and lifting of a commercial vehicle. The two types of lifting devices for commercial vehicles are hydraulic jacks and air-over-hydraulic jacks. Hydraulic jacks do require compressed air. The advantage in these devices is that they are very portable and come in just about any height to accommodate nearly every type of commercial vehicle. Air-over-hydraulic jacks also require compressed air, also are highly portable, and also come with different height adapters to accommodate tractors and trailers. The most critical item in the process is for the technician to ensure that the lifting capacity of the device is greater than then weight of the axle being lifted. The jack should always be inspected to make sure it is in good working order with no damage. Jack stands are designed to support the weight of the vehicle; neither jack style is designed to support vehicle weight, only lift it. Jack stands must have a rated capacity greater than the axle being lifted. If you are lifting an entire axle, then two jack stands are required, one on each end of the axle. Jack stands all must have a mechanical locking pin to prevent accidental vehicle lowering. Rapid Response: 800-928-1184 ext. 40070
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When it comes to lifting, one very common mistake is that the ground under the axle was not inspected to ensure it is firm and level prior to lifting the vehicle. If the ground is soft and/or uneven, then it is time to move the vehicle to a better location. You certainly don’t want the vehicle sinking into soft ground during this process. Once you do find a suitable location, the vehicle must be secured using wheel chocks to ensure it cannot move forwards or backwards. The parking brakes also should be applied. It also is very important to ensure the jacks and jack stands are placed directly under the axle beam/tube. Never place the jacks on the U-bolts, which can be damaged and make future spring replacement a lot more difficult. In addition, the area on the U-bolt is very small and placing a jack in this area could pose a safety hazard. After the tire has been raised about an inch off the ground, a jack stand must be placed directly under the axle. Then, release the jack so the load is completely supported by the jack stands. Never crawl under or work on a vehicle unless it is supported by the jack stand. Tire air pressure should be checked prior to removing the tire assembly from the vehicle with a calibrated gauge. If the measured tire pressure is 80% or less of the fleet pressure specification, then the tire must be completely deflated prior to removal from the vehicle. An impact wrench can be used to loosen each wheel fastener. After the fasteners have been removed, the wheels should be removed carefully so as not to damage the threads on the studs. Following the correct procedures when it comes to mounting, demounting and inflating tires – both on and off a vehicle – will ensure that everyone remains safe and free from injury. TR
Rapid Response: 800-928-1184 ext. 40071
PRODUCT
Spotlight
TIRE AND WHEEL BALANCERS Effortlessness, accuracy and speed are key features of the latest wheel balancers. In our busy, multitasking world, shop owners need equipment that is easy to use and easy to teach. Quick and accurate results are essential to getting customers back up and running in the timely fashion they demand. These latest systems promise a smarter, simpler way to balance.
Hennessy Industries
BendPak The Ranger Products DST-2420 wheel balancer features the company’s Direct-Axis drive system and multi-directional quartz piezoelectric load sensors to calculate the exact weight needed to achieve optimal balance within a hundredth of an ounce. According to the maker, a single digital rotation encoder measures both longitudinal, transversal and shear effects for multi-directional force unbalance detection. These sensors are extremely sensitive and offer superior long-term stability. LED rolling wheel indicators show weight positions as the wheel rolls to top-dead center, and the wheel graphic interface touch panel simplifies speed entry of wheel data while guiding technicians through balancing procedures. bendpak.com Rapid Response: www.TRRapidResponse.com/40150 Or call 800-928-1184 – Ext. 40150
Hennessy Industries has added the 6450-2D to its Coats line of Direct-Drive heavy-duty balancers. The 64502D offers proven durability, fast cycle times and high accuracy through a wide range of wheels, the company said. The machine features Dual Calibration Software, which enhances the auto and light-truck applications on the 6450 platform. The new balancer also includes: two-parameter auto data entry system for clip weight and three-parameter for Tape-A-Weight; two-inch (51mm) heavy-duty arbor on Coats’ Direct-Drive motor; up to 500pound and 52-inch wheel capacity; and laser-guided direct Tape-AWeight placement, according to Hennessy. ammcoats.com Rapid Response: www.TRRapidResponse.com/40151 Or call 800-928-1184 – Ext. 40151
Bee Line The Bee Line Smart Balancer II wheel balancing system is designed to simplify the process of on-the-vehicle wheel balancing for light- and heavy-duty trucks. According to the company, the unit incorporates a sophisticated, yet simple to operate computerized measurement system to measure the amount of imbalance in a rotating tire/wheel and calculate the proper location and amount of weight to be applied to solve the problem. Balancing the entire wheel assembly provides a far more accurate balance, Bee Line added. beeline-co.com Rapid Response: www.TRRapidResponse.com/40152 Or call 800-928-1184 – Ext. 40152
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PRODUCT SPOTLIGHT
Mechatronics Engineering Mechatronics Engineering LLC recently introduced its new, advanced balancing technology called SPBU (self-propelled balancing unit). The SPBU eliminates all external AC or DC motors, direct drive AC motors, gears, power management boards, pulleys, spindles, drive-belts, wheel brake systems (using resistors or other methods) and complex wiring systems, the maker said. The absence of these components eliminates all maintenance issues for owners and operators of wheel balancers equipped with SPBU, since it incorporates proprietary technologies that allow for extremely fast floor-to-floor times for any balance, the company added. librautotech.com Rapid Response: www.TRRapidResponse.com/40154 Or call 800-928-1184 – Ext. 40154
Hunter The Road Force Touch by Hunter produces exceptional balancing results and performs a road force test faster than a traditional wheel balancer performs a typical balance, the company said. The automated road force test finds hidden causes of vibration and pulls to enhance the quality of service and generate more profit opportunities without adding valuable service time. Also featured is a new touchscreen interface that simplifies operation and shortens the learning curve for new technicians, according to Hunter. Live 3D graphics and animations display real-time wheel conditions and illustrate easy-to-understand instructions to resolve vibration and pull problems. hunter.com Rapid Response: www.TRRapidResponse.com/40153 Or call 800-928-1184 – Ext. 40153
Rapid Response: 800-928-1184 ext. 40073
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SOLUTIONS Hot New Products Alignment Check
Race Tire
Hunter said its Quick Check, a new system to help better identify vehicles in need of an alignment, captures toe and camber measurements and produces printed results in under a minute. The color-coded printouts allow service writers to alert customers of misalignment issues. Configurations include a mobile system that can be set up in virtually any shop space and a drive-thru system that works in the write-up area.
Toyo said its new full-slick Toyo Proxes RS1 racing tire is designed to excel in dry braking and enduring closed course road racing, time attack, track days and high performance driving schools. Features include an advanced casing for durability and stability at high speed. According to Toyo, the tire features a reinforced sidewall to provide responsive handling in order to maximize performance while minimizing lap times in dry weather conditions. The Proxes RS1 is available in the U.S. in four sizes: 245/640R18, 285/650R18, 285/680R18 and 335/710R18.
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Disc Brake Pads
Valve Capper Tool
A new series of QuietCast medium-duty premium disc brake pads are available from Bosch. According to the company, the pads are designed to give medium-duty vehicles superior braking performance. Features include stopping power, increased pad life, quiet stops, low dust and great pedal feel.
Ken-Tool launched the 29995 ValveCapper tool to maintain air pressure on inner dual truck tires. According to the maker, the tool makes it easy to remove tire valve stem caps even on the most difficult to reach inner dual valve stems. It can quickly remove and reinstall valve cores from the valve stems.
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Crimping Plier The new OTC Crimpwell angled crimping plier (P/N 5912) is designed to easily access broken, frayed and exposed wires in hard to reach locations. The angled design, developed by a hands-on service professional, keeps the connector parallel to the pliers, improving the ability to ensure wire is properly seated in the connector as well as securing a durable, robust crimp, according to the maker. The crimping design accommodates soft wire insulated or uninsulated – solid or stranded – in sizes 10-22 AWG. Additionally, a cutting feature is included for quicker preparation. otctools.com Rapid Response: www.TRRapidResponse.com/40174 Or call 800-928-1184 – Ext. 40174
Pair of UHP Tires Falken has two new models: Azenis FK453, which the tiremaker said has key fitments for sports cars such as the Porsche 911 Carrera and Lamborghini Gallardo; and Azenis FK453CC, for performance CUVs such as the Porsche Cayenne and BMW X5. Features include high tensile strength, built to excel in high speed handling conditions; asymmetric tread design with a silica-enriched compound for more surface contact with the road; and a 300AAA UTQG rating. The FK453 is available in sizes ranging from 17- to 22-inch wheel diameters, while the FK453CC is available in sizes ranging from 17- to 20-inch wheel diameters. falkentire.com Rapid Response: www.TRRapidResponse.com/40175 Or call 800-928-1184 – Ext. 40175 Rapid Response: 800-928-1184 ext. 40074
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(Continued from page 80) the evaporator will ice up. That can’t be good for the system.” Tooner sat down at the shop computer and pulled up the A/C system information from the GM repair manuals. “Accordin’ to this, there’s an evaporator core temperature switch that signals the PCM when to shut down the compressor. But it don’t say what temperature it cuts in at.” He pulled on his left ear. “All I know is, ya can’t run it this cold.” Beanie climbed into the car and felt the outlet temperature with his hand. “Hey, Toon, are you sure this is 23 degrees? It doesn’t seem that cold to me.” Tooner’s left hand began inching towards his large crescent wrench. “Are you trying to tell me that with all my years of experience I don’t know when an A/C system is blowin’ too cold?”
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Basil jumped to Beanie’s rescue. “My dear Tooner, since we’re all here, let’s do a group check on the system pressures and see where they’re at.” What we found was the low side running consistently at 30 psi, with the high side topping out at 295 – right where the pressures should be on a hot summer’s day. But when Tooner pointed his electronic temperature gauge at the vents again, it still read 23 degrees. Basil opened the bottom drawer of his tool cab and took out a shiny new plastic box. Handing it to Tooner, he said, “Here, try my temperature gauge. I bought it on sale last winter from Big Stan’s Tool Van. It’s hardly been used.” He pointed at Tooner’s battered up electronic tester that was at least 10 years old. “No offense, but I think your unit has seen better days.” Sure enough, Basil’s gauge gave a different reading – the vent temps now read 39.2 degrees. I slapped Tooner on
the shoulder. “Houston, it looks like we don’t actually have a problem at all.” In disgust, Tooner took his old temperature gauge and threw it in the trash. “I s’pose you’re gonna tell me there’s a moral to this story?” “Try this on,” I said. “‘A faulty thermometer can get you into hot water.’ I suggest you buy some flowers for your wife on your way home tonight.” Basil agreed. “Mabel hasn’t been giving you the cold shoulder, Tooner. She’s been trying to make you healthier so that she can have you around longer.” He shook his head. “Though for the life of me, I can’t imagine why.” TR Rick Cogbill, a freelance writer and former shop owner in Summerland, B.C., has written The Car Side for a variety of trade magazines for the past 14 years. “A Fine Day for a Drive,” his first book based on the characters from this column, is now available for order at thecarside.com.
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VIEWPOINTS the car side 80
Rick Cogbill aka Slim Shambles
COOL VIBES Faulty Reading Puts Repair Tech in Hot Water
I
was having a peaceful nap in my office chair when a horrendous noise nearly threw me to the floor. Tooner’s hollering didn’t worry me as much as the large crescent wrench he was brandishing over his head. Fortunately, Beanie can run faster scared than Tooner can angry. I found The Bean hiding behind a pile of old tires. “What’s this all about?” I whispered. “I-I don’t know,” he squeaked. “Tooner’s gone nuts. All I did was offer him a granola bar and he lost it!” “Hmm. I’d better see what’s going on.” After sending Beanie out for some donuts, I brewed up a fresh pot of coffee and called a staff meeting. “What’s the occasion?” muttered Tooner suspiciously, watching me add some French vanilla flavoring to the coffee pot. “It’s not like you to share yer private stash for no reason.” “It’s Apprentice Appreciation Week,” I replied. “Except I don’t think you got the memo. Care to tell us what’s been eating you?” He slouched down in his chair. “Aw, I’m sorry about losin’ it, Slim. An’ you too, Bean. I’m just worried ‘bout how Mabel’s been acting lately – it feels like I’m gettin’ the cold shoulder.” “Sounds like the home fires are burning low,” observed Basil. “So what is it lately that you’ve done to annoy her?” “I ain’t sure.” Tooner began count-
TIRE REVIEW
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ing on his fingers. “Let’s see…I forgot to put the toilet seat down for a week. An’ last Saturday I used one of her dish towels to check the oil in my truck.” He looked up suddenly. “D’ya think she’s ticked ‘cause I took out half her azaleas when I cut the lawn on Sunday?” I shook my head. “Nope. Mabel’s
used to that kind of stuff from you.” Basil agreed. “It has to be something else. Think harder.” But he drew a blank. Tooner has his faults, but nothing his tough little wife of 30 years can’t handle. “How do you know she’s upset?” asked Beanie. “D’ya think I don’t know my own wife?” Tooner sneered. “Believe me, Bean, I’m an expert on these things. When yer woman starts actin’ cool, you know it!” I wasn’t buying Tooner’s claim that he could understand women; we’d seen him in action for far too long. “Why don’t you tell us exactly how Mabel’s been acting lately.” He sighed. “Well, last week at breakfast she poured me grapefruit
juice instead of coffee. Next, she burned my favorite slippers and bought me new ones – kin ya believe that?” He shook his head. “What really worries me is what happened last night…” “Whoa there, Tooner!” I interrupted. “I don’t know if Beanie’s old enough for those kind of details.” Beanie’s eyes were like saucers. “Go on, Toon! What happened next?” Tooner glared at me and continued. “As I was sayin’, last night Mabel turned off the TV right in the middle of the playoffs – and said we were going for a walk!” He buried his face in his hands and groaned. “I don’t even know who I’m married to anymore…she used to really care about me.” We knew Tooner was overreacting, but couldn’t convince him otherwise. By coincidence, the next job on the board only added to his troubles. The 2005 Pontiac Vibe had come in for an inoperative A/C system, which wasn’t surprising, since the compressor had packed it in. Tooner got to work and replaced the compressor, accumulator and the condenser, and then recharged the system before going on a road test. He returned wearing a big scowl. “I don’t get it,” he muttered. “It’s blowin’ 23 degrees outta the vents. How come everything I touch these days turns frosty?” Beanie whistled. “23 degrees? That’s below freezing, which means (Continued on page 79)
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