Modern Tire Dealer - April 2023

SPECIFICALLY DESIGNED FOR THESE POPULAR OE FITMENTS:

Subaru Outback

Toyota RAV4

Subaru Crosstrek

Honda CR-V

Jeep Renegade Trailhawk

Mazda CX-5

Nissan Rogue

Ford Escape

Jeep Cherokee EQUIPPED WITH:

WHO ARE THE BIGGEST RETREADERS IN THE U.S.?

MTD Looks at the Top 50

RETREADERS WAIT FOR DUST TO SETTLE DEALER GROUPS OFFER MORE PERKS THAN EVER

THE SECRETS TO RUNNING MORE THAN ONE STORE

How can ag tire dealers help end users reduce their fuel costs and what

further enhance fuel effi ciency? Ag tire

provide insight, starting on page 46.

Photo: Yokohama Off-Highway

Who will be the next Tire Dealer of the Year?

NOMINATE A CANDIDATE FOR THE INDUSTRY’S GREATEST HONOR

By

Mike Manges

Do you know an independent tire dealer who is worthy of being named MTD’s 2023 Tire Dealer of the Year? We want to know — and soon. Here are a few reasons why. (Forgive me if I digress a bit.)

Tire dealers are not just the backbone of our industry — they keep our economy and way of life moving.

Without tire dealers, cars can’t roll. Commercial trucks can’t deliver the goods and services we need. Tractors can’t plant and harvest. And excavators, bulldozers and haul trucks sit still.

Tire dealers enable these machines — and the people who operate them — to complete the task at hand safely, efficiently and with peace of mind.

There are 29,000 independent tire dealers in the United States. Each and every one is essential. (That includes you.)

MTD established the Tire Dealer of the Year Award — the oldest and most prestigious honor of its kind — in 1993 to honor and celebrate independent tire dealers. We are accepting nominations for this year’s award through May 26 at MTD’s website, www.moderntiredealer.com/tiredealeroftheyear.

The recipient of the award will be featured in the September 2023 issue of MTD. And as part of the Tire Dealer of the Year program, we will make a cash donation to a charity of the award winner’s choosing.

I would like to note that over the decades, hundreds of thousands of dollars have been donated through MTD’s Tire Dealer of the Year Award program —all made possible via the generosity of tire industry suppliers who support the project.

“So how is the Tire Dealer of the Year chosen?” you might ask.

MTD’s Tire Dealer of the Year Award winner is selected by a panel of independent judges who evaluate nominees based on their achievements and acumen in the following five categories, which I’d like to elaborate on as you think about who you would like to nominate:

Business success. How do you define this concept? Yes, gross profit is important. But you know better than anyone that success can also be measured in other ways. It can be defined as the opportunities your candidate has created for his or her employees. It can be based on the stability and success of the families your nominee’s business supports. It can be the goals that your candidate has enabled his or her customers to accomplish. I urge you to think outside the box when describing your nominee in this category. Nothing is off-limits here.

Marketing skills. I believe this is an area where many tire dealers undersell themselves. In the 25 years I’ve been in our industry, I’ve found that tire dealers, by and large, are brilliant marketers — devising and deploying strategies and tactics that are innovative and successful. However, tire dealers don’t like

to brag about this, for the most part. We at MTD believe it’s time for dealers to toot their own horns. Do you know of a tire dealer who is a master marketer? Tell us about that person and what he or she is doing.

Management skills. I find this category to be the most fascinating of the five because it’s where process (skill) and personality (style) intersect. It’s been said that there are as many management styles as there are managers. What’s your nominee’s approach? How has that contributed to his or her success? Has your candidate steered a dealership through rough waters or helped turn a business around? Is your candidate a master motivator? Would employees “walk through” the proverbial brick wall for your nominee? These are all things to consider.

Industry knowledge. This can mean many things, including sheer know-how picked up over the years to participation in tire industry groups, associations and activities. An important thing to think about is how your candidate shares this knowledge with others, not only for their professional and personal betterment, but also for the general betterment of our industry.

Community involvement. Tire dealers are as generous as the day is long, but again, don’t always like to talk about it. From “small” activities like sponsoring the local little league team to major endeavors, every cause, effort and donation of time, money and resources is worthy of recognition.

There have been attempts to imitate MTD’s Tire Dealer of the Year Award. However, this honor has never been duplicated. It stands alone as the greatest distinction that an independent tire dealer can receive. Before time runs out, I urge you to go to www.moderntiredealer.com, click on the Tire Dealer of the Year link at the top of our homepage and nominate a candidate for this year’s award by filling out our online form. It only takes a few minutes. We hope to hear from you soon! ■

If you have any questions or comments, please email me at mmanges@endeavorb2b.com.

The late Barry Steinberg, who owned Watertown, Mass.-based Direct Tire & Auto, was the first recipient of MTD’s Tire Dealer of the Year Award in 1993.

Photo: MTD

TRAIL BLADE BOSS TRAIL BLADE M/T TRAIL BLADE MTS TRAIL BLADE A/T TRAIL BLADE ATS

ModernTireDealer.com

DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER

Stay tuned to MTD’s podcast!

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

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

From acquisitions to anniversaries

Readers are keeping an eye on their peers, whether that’s the businesses they buy, the equipment they invest in and install or the plans they have to grab more market share and grow to become a bigger part of the U.S. replacement market. Another item of interest to readers is the return of a popular feature on MTD’s website: photo galleries! Be sure to look for our latest photo collections at the bottom of the MTD homepage. 1.

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Art Director: Erin Brown

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MTD READER ADVISORY BOARD

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Among the photos in one of our galleries is that of MTD Publisher Greg Smith moderating an OTR Tire Conference panel discussion.

Photo: MTD

Reliable, profitable and consistent

A THREE-WORD GAMEPLAN FOR PRINX CHENGSHAN’S NEW NORTH AMERICAN LEADER

Three years after Prinx Chengshan Tire North America Inc. introduced a pair of new tire brands to North America, the tiremaker hired Samuel Felberbaum last summer to serve as its president and usher in the next growth phase.

Felberbaum, a 30-year veteran of the tire industry who had most recently spent eight years working for Toyo Tire U.S.A. Corp., leads a team that is off and running.

By the end of the year, Prinx expects to increase its current offering of 350 SKUs to more than 400. And most of those SKUs are coming from a three-year-old plant the company is hungry to fill with orders.

Once a one-million-unit, automated warehouse comes online, the tiremaker expects to have passenger and light truck tires on the shelf ready for immediate shipment, cutting turnaround time on those orders by 30 days.

There are a lot of moving parts, but in his first trade press interview, Felberbaum says it all boils down to some simple tasks.

“We’re focused on being best-in-class for our segment. I think if we’re able to be recognized as that, where distributors and retailers can both make an attractive profit on our products, and we do what we say we’re going to do, I think we’re going to be in real good shape.

“We’re not going to be the deal of the day or the lowest price. There’s always somebody that could be lower. But our goal (is to) have a consistent program (for) retailers and distributors” to offer their customers.

NEW PRODUCTS

This year, the company will bring new passenger, light truck and commercial truck tires to the North American market.

An all-weather tire is on the docket for both the U.S. and Canada, as is a Canadaonly winter tire line. On the commercial

side, a long-haul steer tire that fleets have been testing over the past nine months will become available in the third quarter of 2023. A new severe service trailer tire for spread-axle applications in multiple sizes, including 255/7022.5, will join the catalog. The company will add key sizes to existing tread patterns, too.

Ken Coltrane, vice president of marketing and product development, says one of the company’s product priorities last year was a tire for last-mile delivery, the Tormenta LMD. He sees adding a tire for electric vehicles (EVs) on the horizon soon.

“We make EV tires for the China market and I believe they’re sold in some other markets, as well. It’s growing here and we will have it here. We just felt that priority was better placed on tires for last-mile delivery, because that’s absolutely huge right now. EV will get bigger and the volume will be there as we move on down the road. We’ll probably do EV in 2024.”

Felberbaum says, “We’re working hard to meet the demands for both the PLT and TBR markets simultaneously. Having a facility and the backing of the head office to do that is really crucial for our success.”

The “facility” he mentions is Prinx Chengshan’s plant in Thailand, which opened in 2020 with the capacity to produce 800,000 truck tires and four million passenger tires a year. It’s the company’s first production facility outside of China and it opened a year after Prinx Chenghsan introduced both the Prinx and Fortune brands to North America.

Felberbaum says nearly every tire Prinx Chengshan makes for the North American market is manufactured in Thailand. The exceptions are semi-steel ST radial tires and the new winter tire for Canada, both of which will be produced in China. (The company’s all-steel ST tires are manufactured in Thailand.)

Samuel Felberbaum says the Fortune and Prinx brands are “highquality products” with complete and still-growing lineups.

DEALER NETWORK

Plenty of tiremakers use motorsports as a marketing avenue. Ken Coltrane says the Fortune brand is experimenting with pickleball.

Felberbaum and his team are working to expand the company’s existing network of dealers for the Fortune brand. TBC Corp. is the national distributor of the Prinx brand and was “instrumental” in building the brand.

“TBC has been a great partner for us to help get the brand launched nationally,” says Felberbaum.

With Fortune, the company is relying on regional tire distributors to power its sales. At this point, the company’s strongest reach is in the southern U.S. and it is looking to fill in gaps and broaden its coverage in the northern half of the country, as well as in Canada.

Prinx Chengshan doesn’t have its own warehouses in the U.S. yet, so its priority is to work with distributors who can buy container loads of tires at a time. Then with the help of those distributors, the hope is to push the Fortune brand out to more retailers across the country.

Felberbaum says his sales team is on the ground and they’re willing to work

Photo: Prinx Chengshan

Photo: Prinx Chengshan

Industry News

Bites

Michelin invests in Canada

Michelin North America Inc. plans to spend around $220 million to update equipment and technology in its three Nova Scotia production facilities. The investment will help Michelin respond to the demands of electric vehicles, build tires for larger passenger and light truck fitments and meet increased fuel efficiency demands for commercial trucks.

Tire Discounters expands

Tire Discounters Inc. has expanded its footprint in the greater Atlanta area by opening three locations in Conyers, Woodstock and Loganville, Ga. The new stores enlarge Tire Discounters’ presence in the Atlanta market to 14 locations and increase the dealership’s network to 194 total outlets.

ATD opens new D/C

American Tire Distributors Inc. (ATD) has opened a 160,000-square-foot distribution center in Salt Lake City, Utah. The facility is 40,000 square feet larger than ATD’s previous location in the area. ATD has more than 115 distribution centers.

CMA hires Tim Kelly

CMA LLC/Double Coin has named Tim Kelly its original equipment and national fleet manager. Kelly, who spent more than three decades working for Bridgestone Americas Inc., will be responsible for Double Coin truck tire sales into the OE and fleet channels in North America.

Brad Persons joins Apollo

Apollo Tyres Ltd. has named Brad Persons its new national sales head for commercial tires. In this role, Persons will oversee the company’s commercial tire sales initiatives within the U.S. and Canada. He began working in the tire industry in 2003 as a commercial tire and service salesperson.

Discount installs 2nd robot

A second Discount Tire store has installed RoboTire, a robotic tire changing system. The newest installation is in a store in Arlington, Texas. Discount Tire’s parent company, the Reinalt-Thomas Corp., is a financial investor in the robotic automation company. A Discount Tire store in Fountain Hills, Ariz., is home to the tire retailer’s first RoboTire system.

alongside a distributor’s salesforce to talk to and reach more retailers.

He acknowledges the timing has been difficult, as lots of imported products arrived stateside in bulk in 2022, leaving distributors and retailers with more stock on hand than they’re accustomed to. And in many instances, those products came with premium shipping costs.

“In the fourth quarter of 2022, distributors and retailers were really loaded with PLT product and even ST (tires). In the first quarter (of 2023), we’re starting to see levels starting to go back to normal,” says Felberbaum, noting that commercial truck tires recently have followed a similar pattern.

“So that’s a challenge, but I do believe that between Pete (Salvan, vice president of sales), Ken and myself, we have over 80 years in this industry. From our industry experience…and due to all of our relationships, this allows us to at least open the door to present our products. We want to develop long-term partnerships.”

BETTING ON PICKLEBALL

Tiremakers have tried all sorts of part-

nerships and sponsorships to put their brand names in front of consumers. Prinx Chengshan decided to zig where others might zag. In March, the Fortune brand was named the Official Tire Sponsor of USA Pickleball, the sanctioning body of the sport.

“We could have been like the others and tried to go the motorsports route or the off-road enthusiast route,” says Coltrane. “That’s a great way to do it, but we wanted to try something different.”

He adds there are some estimates that 10 million people are playing pickleball.

“That’s a lot of people who are driving cars and vans,” says Felberbaum, “and we’re hopeful that people who play pickleball and buy equipment support the sponsors.”

The new Fortune website soon will have a dealer locator to help consumers find their nearest retailer.

“We look at ourselves as an emerging brand. Pickleball is an emerging and growing sport that has taken off since 2019 — really since the pandemic. We’re hopeful this will lead us to new customers.” –Joy Kopcha

Belle Tire Distributors Ltd. has acquired Tireman Auto Service Centers, which further expands Belle Tire’s presence in northwest Ohio and southern Michigan.

Belle Tire acquires Tireman Auto Service Centers

Belle Tire Distributors Inc. has acquired all 18 locations of Tireman Auto Service Centers, giving Belle Tire more locations in northwest Ohio and southern Michigan.

“I can’t imagine a better partner to take over now that I have decided to retire,” says Randy Jones, CEO of Tireman.

“Belle Tire is a family-owned company (and) like us, they value their people and believe in doing the right thing for customers, like we do.”

“Absorbing Tireman into the Belle Tire family makes perfect sense,” says Don Barnes III, president of Belle Tire.

Belle Tire says the addition of Tireman will enable the company to provide better service in the greater Toledo and northwest Ohio area.

Allen Park, Mich.-based Belle Tire entered the Toledo market 20 years ago and already had four stores in the area.

Photo: Belle Tire Distributors Inc.

A LONG WAY TOGETHER

AGRIMAX V-FLECTO

No matter how challenging your needs, AGRIMAX V-FLECTO is your best ally when it comes to soil tillage and haulage applications. The tire features excellent traction along with enhanced driving comfort both in the fields and on the road. With the exclusive VF technology, AGRIMAX V-FLECTO can carry very heavy loads with a lower inflating pressure even at high speeds providing reduced soil compaction, best self-cleaning properties as well as fuel economy.

AGRIMAX V-FLECTO is BKT’s response in terms of both technology and performance for high-power tractors.

BKT USA Inc. 2660 West Market St., Suite 100

Fairlawn (Akron) - OH 44333

Toll free: (+1) 888-660-0662 - Office: (+1) 330-836-1090

Fax: (+1) 330-836-1091

Bites

Rubber Inc. opens warehouse

Rubber Inc. has opened a warehouse in Charlotte, N.C., to supply tire dealers in the southeastern U.S. The facility is Rubber Inc.’s fourth distribution center. Others are located in Chicago, Ill., the company’s hometown; Durand, Wis.; and St. Louis, Mo.

Maxam adds third warehouse

Maxam Tire North America has opened a new distribution center in Houston, Texas, that features 244,000 square feet of storage space. The facility is Maxam’s third warehouse in the U.S. The company’s other distribution centers are in Memphis, Tenn., and Los Angeles, Calif.

Challenger rolls on ET Street

Mickey Thompson Tires & Wheels is supplying tires for what it calls “the world’s quickest, 0-60 production car.” The company is outfitting the new 2023 Dodge Challenger SRT Demon 170 with a modified version of its popular ET Street tire.

A win for Right to Repair

Maine’s Secretary of State’s office recently certified that the Maine Right to Repair coalition has gathered the necessary number of voter signatures – more than 70,000 — qualifying the initiative to be on the ballot in that state this November.

TIA seeks board nominees

The Tire Industry Association is seeking nominations for four board of director positions that will become open in November 2023. Nominations will remain open until May 8. Newly elected members will take their seats during the association’s annual membership meeting on Oct. 30, before the start of the 2023 Specialty Equipment Market Association Show.

Sun Auto adds store

Sun Auto Tire & Service Inc. has opened a new Driver’s Edge location in McKinney, Texas. This is the 18th Driver’s Edge store and a 19th location is expected to open in Garland, Texas, before the end of 2023.

CEAT wins fitments

CEAT Farmax radial ag tires have earned fitments on Case IH and New Holland tractors. The tiremaker participated in several rounds of assessments and plant audits, as well as multiple tire tests.

K&M Tire wants more market share in 2023

“Ifeel we do a good job where we’re at, but there’s always room to have more market share,” Cheryl Gossard, president of K&M Tire Inc., recently told MTD. K&M Tire’s customers can expect to see growth in several areas this year, she said. “We’re constantly looking at what we’re currently offering and ways to improve it. We have improvements coming for our online ordering system. We’re going to add features to it. And of course, we’re always looking at our warehouses.”

The Delphos, Ohio-based company — which boosted its revenue by 14% in 2022 — opened its 34th distribution center in January. “It seems like every year we’re moving one of them to a larger warehouse. We have a couple of those coming in 2023.”

K&M Tire has 80 outside salespeople “and 30% of their time is focused on (acquiring) new customers. We know there are still a lot of people within our existing footprint who aren’t customers and we want them as customers.”

According to Gossard, independently owned tire dealerships in small towns and rural areas “are more of our niche. Our customers in rural areas normally carry passenger and light truck tires and some carry commercial and ag (tires), as well. We can supply all of those.”

Gossard said it’s important to refine and add to the programs that K&M Tire offers. “We do it for our dealers. We want to continue to help them be successful. The money they get back goes right to the bottom line for them. The more we can add, the more it helps them — which keeps us in business, too.”

Like other tire distributors, K&M Tire grappled with inventory fluctuations last year. A year ago, Gossard said inventory levels were lower than what the company preferred. This past August, the situation began to reverse itself, she explained.

“Our PLT inventory is in a pretty good spot, but we have a lot of ag tires on-hand. For the last couple of years, it was hard to get them — with long lead times — so we had a lot on order and then everything just showed up at once. So right now, all of our warehouses are full.”

Spring planting season will help “move out” some ag tires, she said.

K&M Tire is keeping an eye on consolidation in the wholesale distribution channel. “A lot of our acquisitions over the years have been people reaching out to us because they like how K&M Tire does business. And that continues to happen.”

The company acquired Midtown Tire, a wholesaler in Rochester, N.Y., last May. “That’s been a great addition. We took over their business and were able to expand our footprint in New York. It was just too far away (for us) previously.”

As for the next opportunity, she said, “I think last year a lot of people had a really good year, so they’re not ready to sell. They want to hold on a little longer.”

“We’re constantly looking at what we’re currently offering and ways to improve it,” says Cheryl Gossard, president of K&M Tire Inc.

Photo: MTD

Bites

OE tire satisfaction is up

Consumers are more satisfied with their original equipment tires than a year ago and drivers of electric vehicles reported much higher satisfaction scores in the J.D. Power 2023 U.S. Original Equipment Tire Satisfaction Study. Overall satisfaction with OE tires increased to 799 on a 1,000-point scale. And J.D. Power says satisfaction with EVs increased 62 points from a year ago.

VIP donates to Make-A-Wish

VIP Inc. dba VIP Tires & Service has continued its support of Make-A-Wish with a $164,517 donation from its 2022 campaign. The company has raised more than $1 million for the organization in recent years. VIP’s employees and customers gave more than $82,000 and VIP’s Executive Chairman and Owner John Quirk matched their contribution.

Bill fights state EV mandates

The Preserving Choice in Vehicle Purchases Act — written by U.S. Reps. Gus Bilirakis (R-Fla.), Bob Latta (R-Ohio), John Joyce (R-Pa.), and Jay Obernolte (R-Calif.) — would “place stringent new requirements on automakers” who seek to ban the sale of new internal combustion engine cars and light trucks by 2035” in favor plug-in hybrid, full battery-electric and hydrogen fuel cell vehicles.

Tyrexpo Asia returns

Following more than two years of delays and cancellations due to COVID-19 restrictions, Tyrexpo Asia 2023 opened its doors in Singapore to crowds that were 89% larger than the last show in 2019. The event, held March 8-10, attracted 5,488 visitors and 202 exhibitors.

Kumho hosts trade group

Kumho Tire USA announced that a trade delegation led by John Bel Edwards, governor of Louisiana, recently visited the company’s headquarters in Seoul, South Korea, to meet about a new logistics center investment project in Louisiana. Kumho is planning for a new distribution center near New Orleans.

Bridgestone joins WIT

Bridgestone Americas Inc. has joined Women in Trucking (WIT), which encourages the hiring of women in the industry.

USTMA predicts PLT tire shipments will grow

The U.S. Tire Manufacturers Association (USTMA) projects a slight increase in overall tire shipments for 2023, with year-over-year gains in passenger and light truck tires in both the replacement and original equipment channels. Overall, the USTMA expects tire shipments to total 334.2 million units, up from 332 million units in 2022 and 332.7 million units in 2019.

are rounded and in millions.

Total OE shipments are predicted to increase by one million units, while overall replacement tire volumes are on track to increase by 1.2 million units.

MFA Petroleum buys 13 Big O Tires stores

MFA Petroleum Co. has purchased 13 Big O Tires stores in the Kansas City market. The new stores make MFA Petroleum the largest Big O Tires franchisee in the country, with 35 locations in three states.

All 13 locations were acquired from TBC Corp. Eight of the acquired stores are in Missouri and five are located in Kansas. MFA Petroleum also operates stores in Arkansas.

The deal gives MFA Petroleum its entrance into Kansas, with locations in Kansas City, Kan.; Overland Park and Shawnee; and two in Olathe.

On the Missouri side of the stateline, the deal includes five stores in Kansas City, Mo., as well as Blue Springs, Lee’s Summit and Raymore.

“This is a major expansion for our company,” says Charlie Alexander, senior director of Big O Tires for MFA Petroleum.

“It strengthens our current footprint and helps us build the Big O Tires brand throughout the Kansas City area. We are excited to serve the (Kansas City) market.”

MFA Petroleum is a wholly owned subsidiary of MFA Oil Co. ■

The acquisition includes eight locations in Missouri and five stores in Kansas. The dark black line marks the state line that runs through the Kansas City metro.

Photo: MFA

GET A GRIP! INTRODUCING THE NEW GALAXY HIPPO ALL-STEEL RADIAL

The new Galaxy Hippo all-steel radial is the high-traction answer for loaders that get out to work in the dirt...or mud, manure or feed bunk. The herringbone lug pattern of the Galaxy Hippo radial takes loaders beyond conventional rock tread designs. Plus, the Galaxy Hippo all-steel radial is retreadable, and covered by a Yokohama Off-Highway Tires America, Inc. 5-year warranty.

Ask your Yokohama Off-Highway Tires America rep about the Galaxy Hippo all-steel radial, call (800) 343-3276, or visit yokohama-oht.com for details.

• All-steel construction

• Variable-angle bar lugs for extra traction

• 6% larger footprint than bias-ply

• Overlap on centerline for smooth ride

ORDERING TIRES JUST GOT EASIER! Check out our new B2B E-Commerce Portal

Numbers ThatCount

Relevant statistics from an industry in constant motion

4,300 Average weight, in pounds, of a passenger vehicle on the road for model year 2021, up from 3,200 pounds for model year 1981

Source: U.S. Environmental Protection Agency

5.4% Drop in passenger tire production by USTMA members in 2022 compared to 2021

Source: USTMA 2023 Factbook

Goodyear Tire & Rubber Co..

20

Number of states with an increase in miles driven in 2022 compared to 2019

Source: Crash Source 2023 and U.S. Department of Transportation Office of Highway Policy Information

Photo: 71185979 | Disqdr | Dreamstime

50.4% Share of imports among all light-duty vehicles in operation at the end of 2022

Source: Experian Automotive Market Trends

51 Number of GCR stores

Bridgestone sold in 2022

Source: Bridgestone Americas Inc.

Photo: Toyota Motor Sales U.S.A. Inc.

Photo: Bridgestone Americas Inc.

Photo: Ford Motor Co.

Photo:

There are hints of sellout improvement

TIER-ONE TIRES MAKE A SURPRISING REBOUND

John Healy By

Retail sellout trends continue to show softness on a year-over-year basis, marking a third straight month of negative retail sellout, according to our latest check-ins with dealers.

In February, the Southwest region reported the strongest year-over-year growth, up less than 1%, while the Midwest region performed the weakest, falling more than 3%.

We look at several data points to access the health of demand for automobile travel. Miles driven has a significant correlation with the need for a new set of tires and trends again slowed in February.

That said, we highlight the slightest year-over-year declines since March of 2022. The month of February showed just a 0.3% year-over-year decline in our miles driven momentum index, compared to a 5.4% year-over-year decline in January and a 9.7% year-over-year drop in December 2022.

The index continues to see volatility during a prolonged period, with miles driven below normal. Miles driven have declined each month since March 2022.

Despite the price of gasoline falling for nearly six months, our index has seen no measurable increase in miles driven.

As a reminder, in 2010 through 2016, when gasoline prices acted similarly, we saw miles driven bottom out six months after gasoline prices reached $4 per gallon.

We believe if gas prices follow this historical period and reach an average of $3 per gallon, miles driven should return, benefitting passenger tires and aftermarket auto parts. We believe this scenario could be in the beginning phases of playing out, given the weakest yearover-year decline seen in almost a year.

For the second straight month, the cost of the basket of raw materials needed to make a basic replacement vehicle tire fell on a year-over-year basis. This is the first time this has occurred since December 2020.

Our raw material index fell 1% yearover-year in January and 9% year-overyear in February. The February index was also 0.8% lower than January. This would equate to a 3.6% decline in raw material costs from the fourth quarter of 2022 to the first quarter of 2023.

If current spot prices remained flat, it would equate to a 6.7% year-over-year decline in input costs to build a tire in the first quarter and a further 11.7% decline in the second quarter.

This recent shift is expected to be a welcome sign for both tire manufacturers and tire dealers as price increases on top of the impact of inflation have severely hampered retail sellout.

CLOUDY PICTURE FOR RETAIL

Commentary from dealers suggests consumer demand for passenger and light truck replacement tires was flat compared

to February of 2022, which is consistent with January. No dealers reported positive demand year-over-year in February and it was the same story in January. So the retail picture remains cloudy.

Some dealers pointed to milder winter weather as a drag on demand in February, but generally, contacts are struggling to put their finger on the cause of the slowdown.

It appears somewhat difficult to make year-ago comparisons, as overall macroeconomic worries, the effect of inflation on consumers’ wallets and a lack of weatherdriven buying have resulted in lackluster demand and sales trends so far in 2023.

Looking into March, early trends point to a continuation of softer trends.

A SURPRISE IN TIER PERFORMANCE

After successive months of mid-tier tires leading the demand rankings, our survey of dealers shows a bit of a surprise as tierone tires were the most in-demand from consumers during February. This is the first time tier-one tires were in greatest demand since our October 2022 survey and it bucks the trend of tier-two tires showing the greatest strength.

Tier-two tires were the most indemand or tied for the most in-demand in nine of the twelve months of 2022. Tier-three tires were the least in-demand during our February survey, falling into the bottom spot after being tied for the top spot the previous two months.

Given rising prices for both tires and all consumer goods, February’s tier ranking comes as a bit of a surprise. From our view, this month’s tier rankings may be indicative of some consumer deferment, as those who put off buying tires for the winter season may be trading up a bit to more premium brands. ■

John Healy

is a managing director and research analyst with Northcoast Research Holdings LLC, based in Cleveland. Healy covers a variety of subsectors of the automotive industry.

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

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DEALER GROUPS OFFER MORE PERKS THAN EVER

By

Mike Manges

Delivering increased value to members — in the form of new programs, products, services, payouts and other bene ts — will be a priority for many tire dealer and franchise groups in 2023.

American Kenda Rubber Ind. Co. Ltd. has increased pay-out levels for tier-two and tier-three members of its Kenda Traction program. Tier-two members will receive $2 per tire. Tier-three dealers will receive $3 per tire.

“ e quarterly minimum unit level to reach tier-one also has been reduced to 60 tires from 125 tires,” say Kenda o cials.

For members of the Hercules Power Program, American Tire Distributors Inc. (ATD) has introduced road hazard coverage on the Hercules Strong Guard ST, “which already provides a 60-month limited protection policy and workmanship and materials coverage,” according to ATD o cials.

e Hercules Flex Program “o ers marketing support, training, industryleading warranties and volume bonuses on a wide selection of products.”

Members of the ATD Activate group will receive training, “an updated growth bonus structure” and other perks.

The Independent Tire Dealers Group LLC (ITDG) says it will add new vendors in a variety of categories in 2023. Pictured at ITDG’s 2022 meeting are, in the back row, from left to right, Nancy Anderson of George Oren Tire; Scott Highfi ll of Penn Tire; Chris Barry, ITDG vice president of sales; Shannon Deeter of Ray Deeter Tire Town; and Doug Anderson of George Oren Tire. In the front row, from left to right, are Leon and Jaine Throckmorton of Pinky’s Tire and Linda Deeter of Ray Deeter Tire Town.

And ATD’s Tire Pros program now o ers a “turn-key mobile van solution, including sourcing, up t, training and technology.”

Tire Pros members also have access to “enhanced onboarding, training, learning and development resources for owners, managers and sta ;” a nationwide tire recycling program; and more.

In addition, ATD is “bringing forward a new, alternative general liability insurance solution for Tire Pros owners.”

Balkrishna Industries Ltd. (BKT) ocials say the company is “always looking for ways to improve” its BKT Growing Together Associate Dealer Program “and provide our dealers with more lucrative incentives.

“Since 2021, eight additional products have been added to our program. In 2023, we will continue to add more products and review pay-out tiers to better meet our associate dealers’ needs.”

Photo: ITDG

Program/dealer groups

Pay-out tiers “are outlined in (the program’s) enrollment application, which can be obtained through a BKT sales manager or BKT tire distributor.”

“Training and corporate support are the biggest deals” for members of the BTS Partners Program in 2023, says a representative from BTS Tire & Wheel Distributors, a division of Black’s Tire Service Inc.

“Buying group support and potential container programs,” as well as hiring and technical support for BTS Partners Program members, also are priorities.

Representatives from Bridgestone Americas Inc. say the company’s Bridgestone Affiliated Retailer Nationwide Network is designed to help members “capture a larger share of tire demand in their local market.

K&M Tire Inc.’s Mr. Tire/Big 3 Tire group now offers additional boost programs.

“Mr. Tire/Big 3 Tire dealers can earn quarterly/annual rewards based on brand purchases” from Goodyear Tire & Rubber Co.’s Cooper/Mastercraft programs, as well as Sumitomo Rubber North America Inc. (SRNA)/Falken, Continental, Kumho Tire USA Inc. and Yokohama Tire Corp. programs, say K&M Tire officials.

Kumho officials say members of the company’s Kumho Tire Premium Fuel group have access to the Kumho Solus TA5a, a new grand touring all-season tire.

Maxxis International — USA plans to introduce a new “executive dashboard,” as well as two new passenger tire lines and two new light truck tire lines, to members of its Accelerate program.

Nexen Tire America has extended its Next Level Reach Program for newly enrolled Nexen Next Level dealers.

“We’ve lowered the 100 units required (to join) to 50 units for the first two introductory quarters,” says a Nexen spokesperson.

Nexen also has increased “the pattern payout” for its Roadian ATX and HTX2 tires.

And it has rolled out the Nexen OffRoad Garage for dealerships “who primarily sell” those products.

Trail, the WildPeak H/702, the WildPeak M/T and the WildPeak R/T.

Also new is the Falken Spiff Program app.

This allows users to quickly submit claims, view claims history, check status updates and receive notifications of new promotions — all via mobile devices.

Digital vehicle inspections are new for members of TBC Corp.’s Midas International LLC franchise group.

The inspections are integrated into Midas’ point-of-sale system.

“We are extremely excited about our recent integration with Parts Tech,” says a representative from Tire Solutions Installer’s Tire Solutions Inc. Group.

Titan International LLC plans to make several new products available to members of its Titan Strong Seller Associate Dealer Program.

“On the OTR side, we are investing in product development for industrial-rated tires for a variety of applications,” say Titan officials.

“Specifically, we’ve taken several proven product lines that were originally loader-rated and increased ply ratings to the industry’s highest (level.)

“We are continually analyzing ideas and developing programs to help our members maximize profit potential. “

CMA LLC says its Double Coin dealers will see a new dealer portal, an updated website with a dealer locator and more in 2023.

Continental Tire the Americas LLC recently outlined various sports marketing programs designed to drive more traffic to members of its Gold Dealer program. (See page 60 for more details.)

Giti Tire USA Ltd. has added two products, the Champiro Touring A/S and Savero HT2, to its GT Radial Smart program, which also offers additional cash reward options.

The Independent Tire Dealers Group LLC (ITDG) will add new partner-vendors in 2023 “to help support our members’ growing needs,” say ITDG officials. “These new programs will be in multiple categories like tires, lubricants, vehicle data sources, etc. We are also expanding our new Cell ITDG, which is our proprietary workers comp insurance program.”

Point S USA members “have access to the proprietary Point S All-Trac platform, which provides streamlined access to customer online scheduling, communication and service bay management,” according to Point S officials.

In 2023, Point S also is introducing “a new marketing approach to complement the growing demands of the independent tire store owner” that will provide insight “for each store’s marketing campaigns.”

Sentury Tire USA now offers the Delinte DX-20 Bandit Crossover, Delinte brand commercial medium truck tires and the Landsail CLX-20 Stormblazer to members of its Delinte D-Shield/Landsail 50K/RH group.

SRNA has made two enhancements to its Falken Fanatic program.

The changes include a premium line bonus that enables dealers to “earn an additional $2 per unit on the (Falken) Azenis and WildPeak family of tires,” according to SRNA officials.

Qualifying lines include the Falken Azenis FK460 A/S, the Azenis FK510, the WildPeak A/T3W, the WildPeak A/T

“In terms of dealer programs, we’re continuing to strengthen and grow our sales and training programs,” including Titan University, Titan Rewards, Tire Industry Association safety training and “access to our exclusive dealer portal, The Hub.”

Toyo Tire U.S.A. Corp.’s Driven program is “open to dealers not currently buying direct from Toyo,” according to Toyo officials.

“Our program offers dealers the opportunity to grow their business and grow their profits.

“In 2023, an annual catch-up advantage benefit has been added to the Driven program.”

This helps ensure “Driven associate dealers facing seasonality are able to earn their total payouts on all Toyo purchases.”

Celebrating its 20th anniversary in 2023, Yokohama Tire Corp.’s Advantage program “will be announcing special promotions throughout 2023,” according to Yokohama officials.

“Yokohama also launches a new Advantage Insider Rewards spiff program for associate dealer salespeople at the start of the year.”

“We are also expanding our new Cell ITDG, which is our proprietary workers comp insurance program.”

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Servicing a modern A/C system

COMPLEXITIES MEAN ‘IT’S NOT FOR THE FAINT OF HEART’

By

Joy Kopcha

The turn toward warmer weather historically has signaled the start of air conditioning repair season.

But the growing complexity of vehicles is turning the traditional summertime A/C service into a year-round service opportunity — with growing complexity.

Andy Fiffick has been keeping cars cool for 48 years and he no longer refers to it as “A/C service.”

Fiffick is the founder and CEO of Rad Air Complete Car Care and Tire Centers, a 10-store franchise with locations in northeast Ohio.

He prefers to refer to this work as “HVAC service” and says the term is becoming more prevalent, especially as electric and hybrid vehicles add layers of difficulty to the traditional cooling system.

“It’s all encompassing — not only heating and cooling the cabin for the client, but we’re heating and cooling the batteries.

“Some systems have three separate loops,” he says, noting he attended a recent three-hour training clinic focused on the new Jeep Wagoneer and its four-zone system with 14 control motors. All 14 of

those motors have one wire that controls them, says Fiffick. When that wire breaks, anything after the break won’t work.

“A/C repairs can be very profitable as an add-on service for any shop, but it’s not for the faint of heart. You need to be committed to performing these services correctly and that takes a commitment to training.”

It’s also a financial commitment in equipment and supplies. In addition to designated recovery recycle recharge machines for both R-134a and R-1234yf refrigerants, there are refrigerant and sealer identifiers, leak detectors, oil injectors and some special refrigerant tools needed. Altogether, it’s an investment in the range of $15,000 to $20,000 to offer a full range of HVAC repairs, he says.

On top of that, Fiffick says technicians need to be high-level and well-trained in electronics, heat transfer, thermal dynamics, mechanical operations and various communications systems.

The physics and thermodynamics of these systems aren’t changing. “What’s been changing is the electronics — the way the systems operate.”

Andy Fiffick offers regular training on the new details of A/C service for his employees at Rad Air Complete Car Care and Tire Centers. He says the systems are getting more complex and technicians need plenty of training.

Photo: Rad Air Complete Car Care

Adding to that, Fiffick says welltrained technicians must have a “delicate touch” to remove and replace the dashboard assemblies to access the HVAC box and its evaporators, blower motors and controls. “This takes an incredibly special and talented technician.”

He doesn’t want to dissuade anyone from doing the work, but says long gone are the days where technicians spent their time charging air conditioners to help drivers endure another hot summer.

Fiffick says the molecular structure of the new R-1234yf refrigerant is smaller than R-134a, which means it leaks faster.

Most systems take a pound or less of refrigerant. If a minor leak results in losing about a third of that, “you start affecting performance severely.”

And it’s not easy to find that leak. Old machines mixed the oil and refrigerant together, so an oil stain was a clue as to the location of the leak. Fiffick says new systems keep oil from circulating.

He notes there are resources to help and train technicians. He’s a longtime member of MACS, the Mobile Air Climate Systems Association, and is the current chairman of the group’s board. In addition to other training opportunities and refrigerant certification, MACS publishes a monthly service report with updates.

“I remember when TPMS sensors came on. We had to reprogram all of them. We learned that. We got through it and now they pretty much all program themselves. That’s the one constant in our industry — we’re always changing.”

Bill Snow, vice president of marketing and franchise development for Rad Air, says given their complexity, service advisors need to know how to talk to their customers about these repairs.

“At the end of the day, it’s a closed system,” says Snow. “It shouldn’t leak. There’s mechanical components, there’s refrigerant components, there’s electrical components. The problem exists with at least one of those. When you explain it that way, it simplifies it a bit and sets the expectation.”

RETREADERS WAIT FOR IMPORT DUST TO SETTLE CHANGES AT BRIDGESTONE

Madison Gehring, Joy Kopcha By

MOVE ALL RETREADING TO BANDAG DEALERS

The crush of delayed new tire shipments that arrived on shore in late-2022 still has the potential to give U.S. retreaders headaches in 2023. Several retreaders are bracing for a topsy-turvy environment for the year to come.

Activity in the import market has long influenced retreading. When new truck tire prices are low, it can be difficult for

Also in CTD

retreaders to compete on price. When low-cost imports aren’t readily available or when prices are out of whack, retreaders often are able to capitalize on — and market — the endurance and price efficiency of a reusable casing.

So when the truck tire import market is unsteady, it can have a ripple effect on the U.S. retread market.

That’s not universal, of course, and other factors contribute, too.

John Ziegler Jr., vice president of Ziegler Tire & Supply Co., which is based in Massillon, Ohio, says demand remains high for retreading, even though “many customers just prefer a new tire to a retread, even if performance of the retread can meet or exceed (the new tire.)”

Jesse Richards, vice president of sales for CMC Tire Inc., in Hurricane, Utah, says the bulk arrival of imported tires didn’t single-handedly hurt his company’s retread sales. It was the “arrival of import

products en masse, coupled with a softening truck tire demand, (that) created significant downward pressure on pricing.

“When this happens, it can change the value proposition of retreading versus purchasing imported product for a fleet, particularly where cap and casing sales are concerned.

“The larger and more forward-thinking fleets have stuck with the formula of purchasing premium tires and expecting multiple retreads. Fleets whose tire decisions are more acquisition-cost driven — or fleets that don’t generate enough of their own casings to sustain a retreading program — are gravitating more toward the import product.”

Richards says CMC Tire was able to “outsell” these effects in 2022 and so far

CMC Tire Vice President Jesse Richards says the dealership added a new retread chamber and builder in 2022 to “keep pace with the growth experienced during the course of the year.”

Photo: CMC Tire

Retreading

continues to see “marginal” growth in 2023. But he says, “it will no doubt affect us and the retreading industry as a whole while this environment persists.”

Dorsey Tire Co. Inc., which has outlets in Georgia and South Carolina, received “a tremendous amount of imported tires in the fourth quarter,” says Bruce Chamblee, the company’s chief operating officer.

Yet demand for retreads has remained strong. Chamblee says the “pricing (of the imported tires) is still out of line, as the tires that came in had inflated costs due to agreements made when shipping rates were excessive.”

Michael Beasley, general manager of Beasley Tire Service Inc. in Houston, Texas, says imports definitely affect his retread business.

“With pricing drastically falling on import tires this year, retreads will have an increased pressure above and beyond what was experienced in 2022. With raw material price increases in 2021 through 2022, coupled with increased operational costs, the profitability of (the) retread business will remain tough.”

At Bradenton, Fla.-based Callaghan Tire Inc., CEO Don Mead is still waiting for all the pieces to settle.

“Dramatic increases in import prices created increased demand for retreads in 2021 and 2022. In the last quarter of 2022, we saw import supplies strengthen significantly to the point where they were plentiful.

“As a result, prices for those imports began to materially fall. At this time, we haven’t seen retread demand noticeably fall, but based upon past supply (and) price dynamics, that would certainly be the expectation.”

Mead says so far, demand for retreads has remained strong.

“The strong economy and the previous supply challenges with new truck tires created more opportunities with retreads. Although new truck tire prices have dramatically risen, so has the cost of retreads. Tread rubber prices have risen, driven largely by the same factors affecting new tires.”

He cited two key factors: higher labor costs driven by labor supply issues and higher fuel prices, which have increased transportation costs.

Despite that, Mead says that “the price difference between higher tier new tires

Dorsey Tire Co. Inc., which has outlets in Georgia and South Carolina, received “a tremendous amount of imported tires in the fourth quarter,” says Bruce Chamblee, the company’s chief operating officer.

and retreads has continued to still make retreads a good value.”

Larry Faulkner, executive vice president of Atlanta Commercial Tire, located in Clayton County, Ga., says he’s seen another factor driving new interest in retreads. “More and more local govern-

ments and municipalities are demanding retreads because of sustainability.”

He says pricing actions by new tiremakers are also helping to steer more customers to retreads.

“The continued escalation in price for new tires from large manufacturers is definitely driving the push for more retreads purchased over the road and on local (pick-up and delivery) equipment for most national accounts.”

THE ACQUISITION PUZZLE

Despite worries about the economy in 2022, it turned out to be a year with plenty of acquisition action. And that included retreading operations.

Several deals had one company in common. Bridgestone Americas Inc. sold 51 GCR stores and nine retread plants throughout California, Colorado, Oregon, Utah and Washington.

The bulk of those properties were bought by two of the nation’s largest commercial dealers and retreaders: Columbia, Miss.-based Southern Tire Mart, which

Photo: Dorsey Tire Co. Inc.

purchased 26 GCR stores and four retread plants, and Green Bay, Wis.-based Pomp’s Tire Service Inc., which bought 24 stores and four retread operations.

Commercial Tire Inc., which is based in Meridian, Idaho, bought one GCR store and one retread plant.

The deals closed the books on the longstanding GCR-brand in the U.S.

Retreading

Even though Bridgestone retained nine former GCR locations and two plants after selling off those other assets, those have been realigned and rebranded into a new business, GCR Mining.

The tiremaker says the two plants aren’t retread factories and that retreading isn’t part of the GCR Mining operation. “Bridgestone Americas no longer has

any retreading plants of our own,” says a Bridgestone spokesperson.

That moves all of Bridgestone’s retreading business into the hands of its Bandag dealers — and removes Bridgestone from MTD’s Top Retreaders list. (Two other dealers fell off the list this year after they were acquired. Pomp’s Tire Service added to its network with the purchase of Tredroc Tire Services Inc., which was based in Elk Grove Village, Ill., and Southern Tire Mart grew again after purchasing Redburn Tire Co., which was based in Phoenix, Ariz.)

Jason Roanhouse, vice president of North American Bandag Operations for Bridgestone Americas Inc., says those Bandag dealers are making investments in their facilities.

“Bandag equipment demand is at its highest level in well over a decade, indicating that dealers expect to see a return on their investment in retreading. I think this also indicates dealers expect to see significant growth in the entire suite of fleet solutions offered to provide fleets with products, services, technologies and data to help drive their efficiency.”

Bridgestone maintains three tread rubber manufacturing facilities — in Abilene, Texas, Oxford, N.C. and Griffin, Ga. The company has announced a $60 million investment in the Abilene facility.

INVESTING IN RETREADING

Despite uncertainty in the economy and retread market, companies are still investing in equipment and in their people.

Since purchasing Piedmont Truck Tires Inc. in early 2022, McCarthy Tire Service Co. Inc. has completed the changeover of a Piedmont retread plant in Graham, N.C. from the ContiLifeCycle process to Bandag. McCarthy Tire Service also completed construction of a brand new Bandag medium truck retread shop in Syracuse, N.Y. The first retread rolled off its assembly line on Dec. 14, 2022.

At CMC Tire, Richards says his dealership added a new retread chamber and builder in 2022 to “keep pace with the growth experienced during the course of the year.

“We also re-organized our management team to be more focused on data and analytics to maximize production, while minimizing cost and optimizing on-hand inventory.”

provide world-class retread solutions to independent retreaders throughout the United States and Canada that includes over 70 different precured tread designs, commercial & OTR extruder strips, cushion, repair materials, and technical support.

Wonderland Tire Co., which is based in Byron, Mich., has added three new Cima presses at its Wayland, Mich., location for increased production of the dealership’s AcuTread product.

Jon Langerak, chairman and CEO of Wonderland, says the company is also installing eight Cima presses and support equipment for production of AcuTread products in Lebanon, Tenn. These presses will increase capacity at both manufacturing facilities to around 130 to 160 tires per day.

Noah Hickman, president and CEO of H&H Industries Inc., which is based in Oak Hill, Ohio, says his company purchased an OTR buffer and finished installation at the beginning of 2023.

H&H Industries also released a new mobile OTR tire program that allows service providers to access tire retread and repair data while in the field.

While some dealers are making big capital investments, others are dedicating resources to other priorities and projects.

“As of right now, we are focused on

staffing and maximizing output in our shop,” says Dorsey Tire’s Chamblee. For Ziegler Tire, 2022 was a “status quo” year for spending. However, thecompany upgraded some equipment to help reduce downtime.

Noah Hickman, president of H&H industries Inc., says, “demand for retreaded OTR tires is high as most customers see the long-term value of retreading.” H&H Industries bought an OTR tire buffer and finished installing it at the beginning of 2023.

Photo: H&H Industries Inc.

Top 50 Retreaders

2023 MTD Top 50 Retreaders in the U.S.

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Top 50 Retreaders

Footnotes

* – estimated; N/A – not available

Top 50 Retreaders

Here’s how the points are calculated: Each April, Modern Tire Dealer ranks the “Top 50 Retreaders in the U.S.” based on the average amount of tread rubber used to retread different types of tires. Twelve pounds of rubber, on average, are used to produce one light truck tire retread, while 24 pounds are used to produce one medium/heavy truck tire retread. An average of 324 pounds is used to build one OTR tire retread. MTD awards one point for every seven pounds of rubber used per retread. Each light truck tire retread equals 1.7 points, each truck tire retread equals 3.5 points, and each OTR retread equals 46 points. The point total does not include industrial tires. Numbers are rounded to the nearest point.

Photo: MTD

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Retreading

ON THE UPSWING STEEPLETON TIRE BOOSTED RETREAD PRODUCTION DESPITE TOUGH 2022

Mike Manges By

Last year wasn’t easy for many medium truck tire retreaders. Tread rubber shortages forced some operators — including Memphis, Tenn.based Steepleton Tire — to scramble for product.

Meanwhile, orders continued to roll in, says Chris Steepleton, who manages Steepleton Tire’s six-chamber retread plant.

The combination of increased demand and short supply “put a lot of stress on everyone,” notes the energetic 29-year-old, whose great-grandfather, A.E. Steepleton, founded the dealership in 1945.

But Steepleton Tire found a way “to make everything work,” keep customers happy and even achieve a 4% production increase.

CASING MANAGEMENT

The Steepleton Tire team immediately hunkered down when tread rubber shortages began to develop.

“Up until last year, we probably spent two to four hours a week ordering rubber, checking on open orders and looking at inventory,” says Chris. “Last year, there were times we spent four hours a day doing that.”

Casing availability wasn’t a problem, but Chris found it necessary to monitor the condition of the company’s in-house stock more closely.

“From May through July, every afternoon and into the night, myself, my plant manager and my lead guy would be back in our casing warehouse, pulling down stacks.

“We all had tread gauges in our hands, measuring casings to make sure that one, we had enough tires to run a productive day the next day and two, to make sure we had enough tread rubber in the right widths.

“And once we figured that out, we called our sales guys to let them know what we were short on and what we could substitute. And they’d have to get on the phone with their customers to make it all work.

“We were able to secure enough tread rubber to grow our sales, but it took a lot of moving parts,” he says. “And it took a

lot of communication from our suppliers to our upper management and then to our plant and salespeople and then from our salespeople to our customers.

“There were some surprises as far as what products we were able to get and turnaround times. But as long as you were communicating and planning for those things in advance, you could win.”

RETREAD USE INCREASES

Demand from Steepleton Tire’s customers remained robust throughout 2022, according to Chris.

The company’s retread plant produces around 130 medium truck tire retreads a day during its busy season, which typically runs from May through October.

“Last year, it lasted all the way through November,” he says. “We were rocking and rolling.”

Due to elevated new truck tire prices and unavailability of certain products, “we saw a lot of customers turn to retreading out of sheer necessity.

“They couldn’t get the tires they needed, so customers who weren’t retreading before started to retread.”

Price hikes impacted everyone, but were not an insurmountable barrier for some customers, he adds.

“Price-wise, I’m still surprised to see what some people will pay for a new truck tire. A lot of times, smaller fleets will prefer to run new tires all the way around — especially if they don’t have a large maintenance team.

“But once they get to a certain size and can manage their tire program more closely, it doesn’t take long to convert to a retreading program.”

It helps that tread rubber technology “has become increasingly sophisticated,” says Chris. “Tread rubber has gone through all stages of development — especially precure rubber.”

ROOM TO GROW

As the new year progresses, Steepleton Tire will continue to invest in its bustling

plant. (The company has been a Bandag retreader since the 1960s.)

“In 2023, we’ll add a new extruder machine,” says Chris, whose father, Pat Steepleton, oversees the dealership’s entire operation.

“We’ve added an inspection terminal and a new repair station. Two years ago, we made a 7,000-square-foot addition to our casing warehouse, which came in handy over the past year — especially as casings started to pile up. We were able to keep them inside.

“There won’t be any huge expansions” in 2023, he adds.

“We’re not quite maxed-out on our capacity, as far as what we can run. We have a little more room before we max out.

“Right now, for the foreseeable future, our focus will be on increasing our efficiencies across all of our departments and trying to get as much out of this location as we can.”

Steepleton Tire’s retread plant increased its production in 2022, says Chris Steepleton (far right), who manages the facility. (Chris is pictured with, from left to right, his brother, Michael, and father, Pat.)

Photo: Steepleton Tire

REDUCE. REUSE. RETREAD.

Bandag’s commitment to sustainability is stronger than ever. Since 1957, we and our outstanding dealers have kept an estimated 300 million tires out of the waste stream and saved some 4 billion gallons of oil1—all while helping to lower operating costs with retreads that perform like new tires at a fraction of the price. More retreads mean more savings for both the environment and those fleets’ bottom lines.

In 2022 alone, Bandag retread manufacturers saved…

99 Million Gallons of oil saved

275 Million

Pounds of total waste saved

196 Million Pounds of tire waste saved

177 Million Equivalent energy savings to homes powered for one day

Go to bandag.com and learn more about the impact that switching to Bandag retreads can have on fleet savings.

TRAINING, THE ECONOMY, DEALERS AND EVS

OTR TIRE CONFERENCE COVERED WIDE RANGE OF TOPICS

Mike Manges By

Training, the economy, the role of tire dealers and obstacles to vehicle electrification were hot topics at the 2023 Tire Industry Association (TIA) OTR Tire Conference in Tucson, Ariz.

The three-day event kicked off with several presentations, including a panel discussion in which Jeff Faubion, TIA/ Mine Safety and Health Administration compliance director for Bridgestone Americas Inc., and Roy Galyer, training manager for Klinge Holdings Pty Limited, discussed coming changes to TIA’s Earthmover Tire Service program.

Roy Littlefield IV, TIA’s vice president of government affairs, discussed legislative issues that are impacting the OTR tire segment.

Kevin Rohlwing, TIA’s chief technical officer, presented his annual economic forecast.

Representatives from four manufacturers shared their thoughts on the role tire dealers will continue to play in servicing OTR tires and end users as part of a panel discussion moderated by MTD Publisher Greg Smith.

Matt Futrelle, head of business field earthmoving and head of sales and marketing Americas, commercial specialty tires, Continental Tire the Americas LLC, said that his company has “dealers involved in every part” of the service process.

“I would echo the same thing,” said Chris Rhoades, vice president, OTDC, BKT USA Inc. “Our model is to partner with the dealer, who has access to the mines and is there every day.”

“The reality is that the service provided (by dealers) is the critical function,” said Bruce Besancon, vice president of marketing, Yokohama Off-Highway Tires Inc.

Panelists were asked to provide an update on what their employers are doing to incorporate recycled rubber into compounds and if end users are applying pressure in this area.

“The overall role of sustainability in our business is one of the most critical roles we’re going to have to deal with,” said Besancon. “Do we look at recycled materials in our factories? We sure do. A lot of that is recycling, (which) we already have at that factory as a first step.”

End users are asking for “transparency,” said Futrelle. “They are having to report to their boards, so they come to us and ask, ‘What percentage of recycled (materials) are you using?’”

OBSTACLES TO EVS

In the conference’s keynote address, Doug Kershaw, president of BKT USA Inc. and BKT Tires Inc., discussed obstacles to full vehicle electrification — not just at mine and construction sites, but in general.

Kershaw cited projections from The Faraday Institution that reveal demand for electricity, excluding electric vehicles, will grow 30% by the year 2050 — an increase the United States’ power grid is currently unable to support.

It is estimated that “it will take $7 trillion” to bring the grid “up to speed” just to support present demand.

The supply of lithium, a key component in EV batteries, is another concern. “There’s about 88 million tons of lithium in the world today,” said Kershaw. “Only about a quarter of it can be economically mined. By 2027 and 2028, demand will begin to outpace supply.

“The good news is there is a lot being done today to find alternative battery sources. And I believe there will be a solution someday.”

However, if upgrades to the power grid aren’t made, “and I’m only talking about the U.S., we can’t get to full-electric.”

OTR Tire Conference attendees were greeted by a Stellar Industries Inc.-built, Purcell Tire & Rubber Co.-owned boom truck holding a 63-inch Goodyear tire.

Photo: MTD

In the OTR Tire Conference’s keynote address, Doug Kershaw, president of BKT USA Inc. and BKT Tires Inc., compared development of EVs to “where the internal combustion car industry was back in 1900.”

Photo: MTD

TIREMAKERS SHARE TIPS FOR SLASHING FUEL COSTS INFLATION, BALLAST AND TREAD DESIGNS ALL PLAY A ROLE

“Good decisions on tires can have great impacts on fuel costs,” says Blaine Cox, national product manager — agriculture, golf and turf, Yokohama Off-Highway Tires America Inc.

Modern Tire Dealer has partnered with AG Tire Talk to provide answers to insightful questions that farm tire dealers have about farm tire technology. This is the next installment in our ongoing series, which is designed to help farm tire dealers better connect with their customers. A trending question, followed by answers, will appear in our Commercial Tire Dealer section every other month. For complete answers, click on www.agtiretalk.com.

QUESTION: What tactics can be used to reduce fuel costs, what types of tires can further enhance fuel efficiency and how much savings can end users anticipate?

DAVE PAULK, manager, field technical services, BKT USA Inc.: There are several factors to consider when working to enhance fuel economy in the field. When these things aren’t working right, it can increase the cost of fuel and time, as well as wear and tear on the tractor.

The correct amount of wheel/tire ballast is important for a tractor because it helps to transfer the power from the tractor to

the ground. With too little ballast, the end user is limited to the size of the implements/wagons he can pull. This can create too much tire slippage and can cost your customer fuel and time. Eight percent to 15% slippage is in the recommended range per industry standards.

Proper air inflation and proper ballast are important to ensure that a tractor performs at an optimum level. Tractors in the field used at lower speeds can run less air pressure to allow for a longer and wider footprint. This helps with traction, minimizes soil compaction and saves fuel. Overinflation in the field can cause excessive wheel slip and fuel use.

Photo: Yokohama Off-Highway Tires America Inc.

When the tractor is on the road and used at higher speeds, tires need more air pressure to carry the weight of the tractor and implements. Load capacity decreases as speed increases. Therefore, more air is needed to protect the integrity of the tire. More air also creates a smaller footprint for the road that gives less rolling resistance and better fuel economy.

Central air inflation systems (CTIS) on tractors and combines are starting to be more widely considered and used. A compressor mounted on the tractor and air lines connected to the tires allow for air pressure levels to be dropped in the field and air to be added to the tires before road use. Incorrect air pressures for diverse applications can cause a variety of problems with tires, including premature wear, casing failures and impact breaks.

One survey stated that by using the correct air pressures — minimum pressure levels that will carry the weight of the tractor and implement — end users can save up to 20% in fuel. Another study suggests that eliminating excess slippage by using the correct amount of ballast can lead to up to 10% in fuel savings.

Very high-flexion (VF) tires carry 40% more weight than a standard tire at the same air pressure. They can also carry the same load as a standard tire at 40% lower air pressure. The VF tire is a good option to consider if no till/minimum till is used on the farm. Air pressure dictates the ground bearing pressure of a tire. The lower the pressure, the less ground bearing pressure on the soil. The more air, the greater the ground bearing pressure that is applied.

Big wheel. Little problem.

VF tires provide a larger footprint to reduce slippage, minimize soil compaction and save fuel. At times, the weight carrying capacity and speed rating of a VF tire is needed. For heavy tractors, sprayers and other equipment, the VF tire is the best choice to consider.

Also if less air pressure is desired for field work, the VF-rated tire is the better choice.

Several hybrid tread designs have been introduced into the market in the past few years. They work best for tractors that are on the road most of the time. When the correct air pressures are used, this tire design will wear smoother and provide good road traction in the summer and winter. Tires will deliver better fuel economy on the highway as they are made to have less rolling resistance.

Hybrid designs are gentler on the ground as they have more of an R-3 design than an R-1 or R-1W bar design.

AUSTIN FISCHER , ag field engineer, Firestone Ag: To truly optimize fuel usage, tire dealers must set the correct inflation pressure for each application. Other tactics to reduce fuel costs include replacing worn tires, removing unnecessary ballast, replacing liquid ballast and using CTIS.

Most growers use their tractor for more than one application throughout the year. Examples include planting in the spring and knifing once crops are growing or spraying in the summer and pulling a grain cart in the fall. To reduce fuel costs, it’s

Ag tires

important to determine the appropriate inflation pressure for each application and to be sure to maintain it.

If a grower doesn’t plan to adjust tire inflation pressure throughout the year, we recommend setting the pressure for the maximum load the tires will see all year. But the best way to maximize fuel efficiency is to adjust the inflation pressure for each specific application throughout the year.

The tread of a tire is what transmits the power from the tractor to the ground. As the tread depth decreases below 20% its original depth, consider replacing the tires. This is when the customer’s tires may start losing traction, especially in wet soil conditions. Growers should also replace tires when signs of damage or degradation become apparent.

Adding liquid ballast to tires increases the maximum amount of draft a tractor can exert, but it can reduce fuel efficiency in some situations when compared to using wheel weights. This is due to the stiffening effect of the liquid on the tire’s carcass, which causes it to deflect less and results in a smaller footprint. The smaller footprint translates to less lug surface area available to develop tractive force. Moving away from liquid ballast, and calcium chloride also removes the chance for corrosion of the tire rims, which would eventually necessitate tire replacement.

Two options that can help enhance fuel cost reduction include upgrading to increased flexion (IF) and VF tires. When switching

from standard to IF/VF, growers can increase fuel efficiency up to 4%. Those using bias tires can experience an increase in fuel efficiency up to 14% when upgrading to radial tires, which also provide better tire longevity and fuel economy, as well as reduced soil compaction.

IF and VF tires offer elongated footprints by either permitting the same load at a lower inflation pressure or a higher load at the same inflation pressure. In turn, this extended footprint increases the contact area between the tread lugs and the soil, improving the ability to transmit the torque of the machine to the soil without slip. This equals better fuel economy and less time in the field due to decreased slippage and increased traction. Per unit of fuel, growers should be able to travel further and get out of the field sooner than they would otherwise.

Also consider switching your customers from bias to radial tires. The unique construction of a radial-ply tire allows the carcass to be more flexible and develop a bigger and squarer footprint than a similarly sized, bias-ply tire. The increased footprint size leads to reduced contact pressures exerted on the soil, increased flotation and more lug surface area available to develop tractive force without slipping, with enhanced fuel economy. The squarer footprint shape leads to improved wear performance, ride comfort and handling when roading.

While some specific agricultural needs and equipment may call for the bias-ply option, Firestone Ag recommends radial tires in nearly all cases, given their long life, smoother ride and better performance characteristics.

Your trusted source for top-quality OEM, reproduction, and aftermarket replacement auto parts and accessories since 2010.

DAVID GRADEN, operational market manager, agriculture, Michelin North America Inc.: There are many things that can be done to reduce fuel consumption and add money to your customer’s bottom line.

To start with, make sure you fit your equipment with the right tires for the application. Next, be sure tires are set to the manufacturer’s recommended air pressure, based upon speed and weight of your customer’s machine. If air pressures are set higher than the recommendation, you risk lug damage, punctures, fuel consuming slip and soil compaction, which negatively affects your yield in the long run. By using recommended air pressures, your fuel consumption is reduced due to the larger footprint on the ground. Keep in mind, this is contrary to what we know about passenger car tires. In the soil, a larger footprint means more tractive capacity/less slip.

www.wheelership.com

Make it a VF tire and you have significantly improved upon this idea, as VF tires are designed to carry the same weight at 40% less air pressure. Less slip translates into improved productivity and, therefore, less fuel is consumed to do the job. In fact, independent studies at Harper Adams University in the United Kingdom show fuel consumption can be reduced by 10% simply by changing to VF tires.

‘In the soil, a larger footprint means more tractive capacity/less slip.’

David Graden, Michelin North America Inc.

Ag tires

CHRIS NEIDERT, training and development manager, ag, Trelleborg Wheel Systems: Getting as much horsepower as possible transferred from the engine to the ground is the end target. Ballasting can help accomplish this by either adjusting existing weights or placing additional ballast either on the front or rear of the tractor. The goal isn’t to have zero wheel slip, but to shoot for a preferred slip of between 8% and 15% for tractors.

Having too high of a slippage rate means spending more time than necessary in the field and wasting money on fuel as the tires are forced to spin more. Having too little slip means risk of overload on the tires, higher soil compaction, power loss, increased fuel consumption and lower productivity. Getting the proper ballast and tire inflation pressures can optimize traction, reduce compaction, increase the life of the tires and increase productivity.

Regardless of the tractor horsepower that your customer is using, the goal is to capitalize on the machine’s engine power. Getting the tractor to be heavy enough to apply that power from the engine to the ground is paramount.

BLAINE COX , national product manager — agriculture, golf and turf, Yokohama Off-Highway Tires America Inc.: Because they are the point of contact between the machine and the ground — and the point of friction when unnecessary motion takes place, tires have a significant impact on fuel efficiency. That means good decisions on tires can have great impacts on fuel costs.

The most important decision is inflation pressure. When manufacturers design a tire, we determine how much its sidewalls will flex in order to create a contact patch with an optimal size and shape. Too much inflation pressure means less contact patch, more slip and less engine power turned into forward speed. That all adds up to more fuel consumption.

In practical terms, we can be talking about a lot of fuel. In fact, scientists at the University of California Davis found that correctly inflating tractor radials — in their example, 13 psi front/11 psi rear, rather than overinflated at 24 psi — reduced fuel consumption by 20%.

If your customer is experiencing too much slip because your equipment is too light, ballast his tractor to optimize it. If the slip is the result of worn-out tread failing to provide enough traction, consider replacing the customer’s tires. Whatever the reason for it, slip is just another word for turning your wheels and burning fuel without getting work out of the process.

Selecting the right tire can pay off in lower fuel bills. Because IF and VF tires have added flex in their sidewalls, longer and wider contact patches and can operate at lower inflation pressure, they improve fuel economy over standard radials.

When you are looking to upgrade your client’s tires, look for tread patterns that maximize traction and minimize rolling resistance. We’ve come a long way from the lug designs that were in fashion for more than 100 years. You’ve got great choices for the soil types, roading needs and chores your customer needs to accomplish.

Finally, when diesel prices are as high as they have been this season, a CTIS — which allows you to adjust inflation pressure on the go, right from the cab — can pay itself off more quickly than ever. And not only does CTIS improve fuel economy, it also helps your customers get longer wear and better performance out of their tires.

When you start thinking about fuel consumption, take a minute to glance away from your gas cap and take a look at your tires.

‘In fact, scientists at the University of California Davis found that correctly inflating tractor radials — in their example, 13 psi front/11 psi rear, rather than overinflated at 24 psi — reduced fuel consumption by 20%.’

Blaine Cox, Yokohama Off-Highway Tires America Inc.

Commercially Viable

Apollo launches line-haul tires

Apollo Tyres Ltd. has unveiled its new range of line-haul commercial truck tires — the EnduMile LHfront, a steer tire; the EnduMile LHD, a drive tire; and the EnduMile LHT, a trailer tire. “The new range will allow Apollo to cover 85% of the commercial truck tire market, with over 40 SKUs, delivering high mileage and low” cost-per-mile, the company says. Apollo offers a complimentary road-hazard warranty on all of its commercial tires and also offers “rapid nationwide delivery, domestic inventory and a 72-month workmanship and material warranty.”

APOLLO TYRES LTD.

www.apollotrucktires.com

CMA LLC/Double Coin releases OTR tire

CMA LLC/Double Coin has introduced the REM-2S all-weather/snow radial OTR tire. The tire features heavy siping with off-set blocks for traction and provides “advanced capability in snow, ice, gravel and soft, sandy terrains,” according to CMA/ Double Coin officials. Designed for year-round use, the REM-2S is “great for snow removal, winter clean-up, road clearing” and other applications, while offering balanced performance on both dry and wet surfaces.

CMA LLC/DOUBLE COIN

www.doublecointires.com

Titan debuts 46-inch ag tire

Titan International Inc. has introduced what it says is “the fi rst-ever R-2 deep-tread tire in the world’s largest farm tire size — the LSW1400/30R46.” The tire, which is the latest addition to Titan’s radial Goodyear Custom Flo Grip line, “is being brought to market to meet the growing demand for greater combine fl otation and traction from growers in regions and applications that face incredibly wet fi eld conditions,” say Titan officials. The LSW1400 enables 40% reduced infl ation pressures and other benefi ts.

TITAN INTERNATIONAL INC.

www.titan-intl.com

Continental rolls out truck tires

Continental Tires the Americas LLC has updated its lineup of allposition and drive tires with the Conti HSR 5 and the Conti HDR 5. The Conti HSR 5 features siping across the full width of the tire for enhanced traction and improved handling. It is available in size 225/70R19.5, Load Range G, at 16/32-inch tread depth. The Conti HDR 5 features 3D matrix siping for both improved traction and wear. The tire is available in size 225/70R19.5, Load Range G, at 16/32-inch tread depth. Both tires feature 3-Peak Mountain Snowfl ake certification, are sensor-ready and can be retreaded.

CONTINENTAL TIRES

THE AMERICAS LLC www.continental-tires.com

Nokian adds OTR tire size

Nokian Tyres plc has added a new size, 600/40-22.5, to its Ground Kare line, which has been designed for excavator applications. The tire will help contractors “minimize soil damage and at the same time, offer them a tire with smooth, comfortable and fuel-efficient” features, according to Nokian officials. The new size is recommended specifically for smaller excavators in the range of nine to 15 tons and can work in tight spaces.

NOKIAN TYRES PLC www.nokiantyres.com

Goodyear expands OTR offering

Goodyear Tire & Rubber Co.’s new Powerload OTR tire line targets construction, loading and landscaping applications. The Powerload line, which is available in North America, features Goodyear Smooth Guard Technology for enhanced cut resistance; a deep shoulder tread depth to provide lower cost-per-hour; and more. The line is electric drive-ready, meaning it can be used with electric and gas or diesel-powered vehicles, Powerload is available in the following sizes: 365/80R20, 365/70R18, 405/70R18 and 405/70R20.

GOODYEAR TIRE & RUBBER CO.

www.goodyearotr.com

By

The secrets to running more than one store

WHY YOU SHOULD TRUST YOUR MANAGERS — AND NOT JUMP IN

Dennis McCarron

Most single independent tire stores have one thing in common: the owner can usually be found behind the counter. This means owner “stuff” isn’t getting done during the workday. That means the owner is working late nights or at the kitchen table on Sunday afternoon.

If you are an owner of a single location, you have to learn how to get off the counter. If you don’t, all you did was buy yourself a job.

I’m not saying you can’t fill in when someone calls in sick or someone quits. Emergencies happen. But the minute you’re back behind the counter, you should be figuring out how to get off of it. There are many reasons why.

An owner should be doing owner activities, such as researching and negotiating better rates on insurances and fees, lowering fixed costs, managing payroll and planning future events. The list certainly doesn’t end there, but these activities add up to a full-time job.

of money on new equipment, he or she must research, gather the resources and convince you. And you have to allow it. Do not make this a futile practice for managers.

To build trust, their opinions and judgements must be taken seriously and acted upon. If you are thinking to yourself, “I can’t trust my manager with the knowledge of people’s pay or in making equipment decisions,” then you either have the wrong person in charge or you need to start training them on how to make those decisions and keep information confidential.

Depending on systems and processes means that the store is forged in a robust, well-thought-out series of steps and decision-making. A system is a series of locked-in, predetermined steps that never change. Greet the customer. Obtain and verify contact information and timeline. Thank the customer for business.

Processes usually involve making little decisions or judgements that help achieve a desired outcome. How to make those little decisions needs to be taught. Have employees think through the little decisions, which are teachable, and if they make the easy decisions the way you would, that will add up to the big decisions. There has to be an element of independent thought with managers when you run multiple locations. If there isn’t, you will be inundated with low-level, task-oriented questions and your entire day will be interrupted with questions like, “Should I order the washer fluid?” You do not want to be the center hub for everyone’s answers.

When a dealer opens up a second shop, he or she can usually figure out, somehow, to be in two places at once. But when the owner opens up a third shop? That’s when the entrepreneur must learn a new skill: managing from a distance. And this is a something that even a single store operator needs to develop.

Managing from a distance is a broad term for many skills. We will focus on the top three. When you have to manage people without seeing them work every day, you have to build trust with your management team, depend on systems and processes and finally refuse to jump in.

Building trust with your management team means bringing in store managers and handing over the reins so they can run the store. You will retain some veto power. Most noticeably, you will want to keep the power to fire anyone. There are many legal reasons for this and even safety reasons. You will also likely retain control of any budget or expense spending. But moving forward, these items must become discussions, not authoritative solo decisions. If a manager wants to fire an employee, he or she must talk to you first and explain, document and justify. If a manager wants to spend X amount

And keep an eye on the “superheroes” on your team. Superheroes don’t like rules. While you may tend to like their heroic efforts and usually large sales production, they will feel constrained by the rules and become unhappy or they will start breaking rules. This will encourage others to break the rules. You want to avoid this situation.

Finally, refuse to jump in. Probably the number one mistake managers make from a distance is giving in to the temptation of jumping back in, taking over and doing the work themselves. I’m not talking about intervening in the event of a severe crisis or covering the occasional shift. I’m talking about situations where a problem is observed and the owner knows he is the smartest/fastest/best person to handle the issue, so that’s what he does.

You must refuse to jump in. Turn to your managers and ask what they are going to do about it. Coach them in making the best decision possible. ■

Dennis McCarron is a partner at Cardinal Brokers, one of the leading brokers in the tire and automotive industry (www.cardinalbrokers.com). To contact McCarron, email him at dennis@cardinalbrokers.com.

‘Managing from a distance is a broad term for many skills.’

Dennis McCarron

Mergers and Acquisitions

Why membership is declining at regional tire dealer associations

FIRST, CONSOLIDATION AND COMPETITION – AND THEN CAME COVID-19

Michael McGregor By

The new edition of my book, “Buy, Build, Fix, Sell: Mergers & Acquisitions for Tire & Service Dealers,” is out and available for sale at Amazon.com. Since it is uniquely written for the tire industry, I thought I’d reach out to regional tire dealer associations across the country to try and schedule some speaking engagements.

I was a little surprised to discover that the years since my last book tour have not been kind to regional tire dealer associations.

While the national Tire Industry Association (TIA) is “strong and consistent” says Roy Littlefield IV, TIA’s vice president of government affairs, the same cannot be said for many regional tire dealer associations. Recently, some have merged with other auto-related groups, some are rethinking their purpose and several show little if any activity. Some have simply shut down.

Historically, the regional tire dealer associations offered several benefits. They offered an opportunity for independent tire dealers to network, socialize and learn from each other. They developed discount programs with uniform vendors, parts houses and even insurance companies for members. They provided educational opportunities and training and marshaled resources to lobby in state legislatures for things that mattered to tire dealers.

Over time, buying groups, franchise programs and tire manufacturer programs have in some cases done better jobs of offering the first three benefits. Only lobbying, if it is within a regional association’s charter, remains as the last primary benefit without competition. Most regional tire associations are organized as non-profit organizations and they are now competing with for-profit enterprises for the attention of tire dealers.

Most regional tire dealer associations have hired professional association managers or management groups that often run other industry associations. While many tire dealers are typically on the board of directors or in a rotating leadership role, the day-to-day grind of running the association is almost always outsourced. When that association manager wants to retire, the association is sometimes faced with an existential crisis. That’s when they look to merge with other groups.

Dick Nordness was the executive director for the Northwest Tire Dealer Association (NWTDA), which recently merged with the Northwest Auto Care Alliance. The merger was sparked by Nordness informing his board he was looking to retire. Consolidation in the Northwest saw NWTDA membership decline from 300 dues-paying members five years ago to 150 today. Although Les Schwab Tire Centers Inc. and Point S are members, both have their own annual trade shows and conferences they prefer their managers attend. With a steady loss of membership, attendance at the NWTDA annual trade show

became a break-even event, at best. Lately, COVID-19 prevented annual meetings from even happening.

The combination last year of the North Carolina Tire Dealer Association (NCTDA) with the Independent Garage Owners of North Carolina was also initiated by the retirement of longtime executive director, Reece Hester. The newly formed Auto Service & Tire Association (ASTA) has combined into the Southeast’s largest association serving the auto aftermarket. The group adds value by lobbying, having an annual convention and sponsoring regional meetings across the state, with a focus on tech training and establishing tech apprentice programs at community colleges.

Faring more poorly when compared with those two groups was the recently disbanded North Central Tire Dealers & Suppliers Association (NCTDSA), covering North Dakota, South Dakota and Minnesota. According to Bonnie McLeary, who led the non-profit association for the last 20 years, decline was attributable to “mergers happening and people closing businesses.” After COVID-19, the group geared up for an annual conference and reached out to its 150 members, but “no one signed up”. The show was canceled two weeks before the event date due to “lack of interest.”

McLeary notes the group was stagnant and not attracting new members. For many years, “it was the same faces showing up at everything.” With “money running out,” there was never any talk about merging the group with another. “We just were not relevant anymore,” concludes McLeary.

Close to shutting down is the Arkansas Tire Dealer Association. Executive Director Charlie Edens says the group had 350 member locations seven years ago and has declined to under 100 today. At this point, there “are no dues-paying members left,” says Edens, who cites “a lack of interest among the next generation of tire dealers” in keeping the group going. With no networking meeting of any sort for the last five or six years, opportunities to show added value to members were limited.

The New York Tire Dealer Association’s Ernie Caramanico reports the organization halted dues collection and has not had events for several years because of COVID-19. With a history that dates to 1921, current membership stands at about 110, down from 250 back in the day. I asked if the group ever considered merging with the New Jersey Tire Dealer Association, but Caramanico

‘There are ways regional tire dealer associations can still add value.’

Michael McGregor

was not aware of anybody active there. New Jersey looks shut down to me. (The New England Tire & Service Association covers a larger area and remains vibrant and active.)

The South Carolina Tire Dealers and Retreaders Association (SCTDRA) is run by Leigh Wickersham, who notes membership is down from over 100 “back in the day” to about 25 members today. The group does not have an annual conference, but half of the association’s budget is spent on hiring consultants — it can’t afford a lobbyist — to keep them apprised of legislative matters.

Determined to hang on, the Chesapeake Auto Business Association has transitioned over time from gas station members to tire dealers and now will accept any auto-related business. Down from 400 members at one point to about 70 today, the organization has no annual meeting or lobbying effort, but is planning local meetings for members and is focused on helping with technician recruiting and training.

Perhaps the person best positioned to make sense of the challenges faced by regional tire dealer associations is Chris Barry, who is both president of the California Tire Dealers Association (CTDA) and vice president of sales for the Independent Tire Dealers Group LLC (ITDG).

Barry notes the CTDA is open to anyone in the automotive aftermarket. The organization stands at about 350 members today — down about 10% over the last several years. Joining the CTDA is not an expensive proposition at $300 annually. Thirty percent of its budget is spent on lobbying.

Mergers and Acquisitions

ITDG, like other tire dealer program groups, continues to grow. Organized as a for-profit buying group with actual investing shareholders, it has an annual cost of $2,400 per member, offset against volume rebates. ITDG has grown steadily to encompass more than 1,100 locations nationwide. Not only does ITDG add value as a buying group, but it has an annual three-day meeting and after members arrive, the cost of the rooms, activities and food is all paid for by ITDG suppliers. At the meeting, members can choose from up to 20 educational sessions to attend and there are more opportunities to learn from each other, including in the “everything goes” shareholder’s meeting. ITDG also offers a captive insurance company for workers compensation insurance.

COVID-19 has clearly hit the regional associations hard, but their decline has been happening for quite some time now. The regional associations are dependent on their sponsors, who fund a great deal of the association’s budget, but one pet peeve of mine is they have allowed the sponsors to hijack the speaking slots. The same old faces who “pay to play” get up and talk about their company program and there’s not much real education there.

There are ways regional tire dealer associations can still add value. I recommend they provide meaningful educational sessions and exciting networking events and that they fund a lobbying program to fight for things that matter. ■

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

Fortune Tires Hits the Court as Official Tire of USA Pickleball!

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Dealer Development

How to convince your employees to take ownership

LOOK AT YOUR PAY SYSTEM, LIVE BY THE ‘75% RULE’

Randy O’Connor By

Even those asleep at the wheel are feeling pretty good about their businesses these days. The last three years haven’t been easy, but the outcome has delivered solid results for most everyone in the tire and service industry.

Let’s look at how far we’ve come.

In 2020, we learned that what we knew was no more and vulnerability was a real thing. Our comfort zones were disrupted and we were forced to adapt at speeds that we hadn’t really seen before.

In 2021, those dealers who were superagile thrived. They were proactive and their employee retention proved it.

But in 2022, we discovered that the market competing for our team members had gotten aggressive. Those who were hesitant to adapt in 2021 felt the hurt and struggled to keep a strong team.

How do you keep a strong team? By requiring your team members to have ownership or at least a sense of ownership.

You may often wonder why members of your team don’t take ownership the way you do. I hear it all the time.

We expect our team members to take ownership of their positions. We expect our team members to make judgment calls as though the outcome or cost of those decisions came from their own checkbook.

We also expect our team members to manage our reputation as though it was their own social media page.

The majority of store owners and managers in our industry have lofty expectations of their teams. Some are totally well-founded, while yet others are not.

How do you engender a sense of ownership? First, you need to give credence to the expectations that are set. Moreover, you need to define and outline a path to success that is simple, logical and mutually beneficial.

I also recommend designing and implementing pay systems that lead the market — not follow it.

A successful and lasting pay system should be defined by production-based goals that feed both the business and the employee.

Here are a few considerations that may help you design a successful pay system of your own.

First, to truly hold anyone accountable for anything, you should reference the 75% rule. This means not holding employees accountable for anything they do not have at least 75% control over.

A perfect example is the spiff system that many dealerships use. A general service technician finds an air filter and if it’s sold, he gets a buck. A pair of wiper blades nets two bucks. You get it.

However, does that technician have 75% or more control over whether or not those items or services get sold? Absolutely not. Do they have control over whether inspections get done or not? Absolutely!

Second, a rate increase, whether flat or hourly, doesn’t actually motivate teams for any significant amount of time. The reward on the new investment is, at best, temporary.

Instead of flat or hourly raises, consider aligning your gross profit goals with your employees’ pay goals. Have a real conversation about how much money your team members would like to make and develop a goal system, based on things they have 75% control or more over, to help them get there.

You could tie it to training, professional development, quarterly reviews, gross profit, efficiency measures or other metrics. There’s a ton of options.

Finally, make it a team thing. While owners and managers consider themselves accountable for developing good teams, it’s really each team member being accountable to the rest that engenders true success.

Chances are you have more than one person in each segment of your business who’s on a specific type of pay program. Lump their goals together and provide bonuses based on their success.

It’s often said that employees usually leave because of bad management, which is true. But they often stay because of their team. ■

‘Have a real conversation about how much money your team members would like to make.’

Randy O’Connor

Instead of flat or hourly raises, consider aligning your gross profit goals with your employees’ pay goals.

Photo: MTD

WE WANT TO HEAR FROM YOU!

Established in 1993, Modern Tire Dealer’s Tire Dealer of the Year Award is the oldest, most prestigious honor of its kind. Each year, Tire Dealer of the Year Award candidates

Do you know an independent tire dealer who excels in these areas? Nominate him or her today! DEADLINE FOR

To nominate, go to: www.moderntiredealer.com/awards For more information, contact MTD Editor Mike Manges at mmanges@endeavorb2b.com

Getting buy-in on EV service

DON’T BE AFRAID TO HAVE ‘THE TALK’ WITH EMPLOYEES

Craig Van Batenburg By

When you need an existing employee to develop a new skill, what do you do? How do you talk to them? In the case of a technician, has “the talk” come up about electric vehicle (EV) training? If it did, how did it go?

I ran a shop for more than 25 years and had many valuable employees, so I will draw from that experience. Today, I own and operate a technical training center educating in-service techs into the world of hybrid (HEV) and electric vehicles (EV).

I have “the talk” with shop owners who struggle with this new technology every week. (Honda of America uses the term “associates” for their employees, so we will go with that.) Let me introduce you to three technicians and their employers, who own a tire dealership that is new to the world of HEV and EV service.

Technician Doug. A seasoned tech, Doug has been with you for more than 20 years and is in his mid-40s. He is your ASE master technician and your diagnostic lead. Doug is married, with teenagers at home and one elderly parent who needs help. Both Doug and his spouse are working. Doug is solid, hardworking and dependable.

ago from its original owners, JoAnne and Scott, when they retired at age 72. There was great potential to modernize and grow. Eric and Bella added four bays and went all-in to service the entire vehicle. When they took over, they started monthly meetings with their 14 employees on Wednesday, every week. They also conduct random, individual talks with employees when walking around their shop.

Recently, Bella was the first to raise the subject of EVs at dinner with Eric one night. She said, “EV sales were up 65% last year. What do we do about the future?” They both agreed doing nothing was not an option. Both Eric and Bella were ready to move ahead on servicing EVs, but they needed their associates to get there, too.

So Eric and Bella decided to have “the talk” about EVs with each of their associates individually. It was time for employees to share their ideas and concerns. (And the concerns didn’t have to be rational.) Everyone had their turn. Then Eric and Bella summarized all of their feelings and held a big meeting.

What did Doug, Alex and Sarah object to during those individual conversations?

Doug was worried he would get electrocuted, that the tools he would have to buy would cost too much and the training would take too much time away from his family. Alex hated the idea and thought EVs were not necessary. Gasoline and diesel were just fine and the government should not tell us what to buy, he said. Sarah was afraid that some of her co-workers would make fun of her as she followed her dream of a zero-carbon world.

Technician Alex. This “B tech,” who is 27 years old, has been with you less than a year. Alex is single, fun-loving and loves his hopped-up truck. Alex has been in the business for six years and this is his fourth job. (His parents paid for him to attend a 12-month private tech school after high school.) Alex likes his time off.

Technician Sarah. At 22, she is mature beyond her years. Sarah is smart, articulate and serious about the environment — both the working one and the planet. She graduated from a local community college with an associate’s degree in automotive science and technology. She was a paid intern at two other shops before going to work for Eric and Bella, whom we will discuss below. Sarah works full-time.

Owners Eric and Bella. At 54 and 52, respectively, Eric and Bella are a married couple, with one grown daughter away at college who is not interested in a career working for the family business. Eric and Bella took over their tire dealership six years

This process needed to happen first. Next up was discussing conditions. (In my experience, this part of the process is much easier and usually happens faster.) Conditions, in this context, require spending money. Doug, Alex and Sarah each needed something — and in Sarah’s case, many things.

Doug said he would go along with the plan if he could attend training during the day. Alex said he would get safety trained in high-voltage systems so he could be a helper, if needed. Sarah presented a long list — from tools, equipment and training to an HEV and EV shop car, chargers in the store’s parking lot and more.

Nobody quit. The funding was there and the work began. Eric and Bella added HEVs and EVs to their dealership’s list of services.

Are you ready to have the EV talk with your employees? ■

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

‘Are you ready to have the EV talk with your employees?’

Craig Van Batenburg

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on Dealers

Charity said that 36 new dealers qualified for the Continental Gold program and attended the meeting. In total, nearly 700 people attended the event. (The Continental Gold Program started in 2005.)

POSITION ON EV TIRES

During the Gold Dealer meeting, Joe Maher, product manager for Continental, explained the company’s position on tires for EVs.

Currently, Continental has fitments on seven of the top 10selling EVs, with overall coverage for 50% of new OE fitments and 100% of replacement EV fitments.

He said it is estimated that by 2030, 50% of new vehicles sold will be EVs. However, EVs will account for just 15% of the total number of vehicles in operation at that time.

Maher was quick to point out to dealers that they needed to be aware of what type of vehicles were in their market, as San Francisco, Calif., for example, already has a large population of EVs, while San Antonio, Texas, another example, does not.

Continental’s replacement EV tire performance focus is typically on grip and tread life, while the OE side is more about range and low noise, said Maher, who addressed five different “EV market perceptions:” efficiency, weight, torque, range and noise.

While Continental produces tires for EVs, Maher made it clear that the company does not make tires solely designed for EV fitments.

He also mentioned there are a wide number of factors that affect an EV’s range, which is a very important concern of EV purchasers. Ambient temperature, use of air conditioning, use of a heater, driving speed and tires all can determine a vehicle’s range, he noted.

There are 3,500 dealers who participate in the Continental Gold Dealer program, says Chris Charity, vice president of sales, U.S. PLT replacement business, Continental Tire the Americas LLC (far right, with Bill Caldwell, Continental senior vice president, U.S. PLT sales and marketing, center, and Travis Roffler, Continental’s director of marketing, left.)

Golden opportunities

CONTINENTAL DISCUSSED EVS, MARKETING AT GOLD DEALER MEETING

Greg Smith By

Updates on key Continental Tire the Americas LLC marketing initiatives and the company’s approach to tires for electric vehicles (EVs) were hot topics at the recent Continental Gold Dealer meeting in Playa Mujeres, Mexico.

Chris Charity, vice president of sales, U.S. PLT replacement business for Continental, said roughly 300 dealers representing 782 locations qualified for and were invited to the event. In total, there are 3,500 dealers who participate in the Continental Gold program.

In most cases, according to Maher, tires were not the contributing factor to range. (He estimated that tires had up to a 10% influence on range. The compromise when designing a tire is how to maintain tread life, impact resistance and wet weather handling, while addressing rolling resistance, he explained.)

MARKETING UPDATE

Travis Roffler, Continental’s director of marketing, told dealers everything his team does is aimed at “driving the consumer to you.” He used the marketing phrase for the Continental brand, “The Smart Choice in Tires” as an example. The intent behind the campaign is to drive consumers to tire dealers.

“Technically, people don’t understand tires. They do understand what the tire delivers.”

A major marketing initiative for Continental continues to be its partnership with Major League Soccer (MLS), which the company started in 2010. Roffler said the league is the fastestgrowing professional sports league in the U.S. and has expanded to include 29 teams. Continental has a contract to be a sponsor through 2025.

Continental is continuing its sponsorship of NCAA college basketball, with 30 separate schools, as well as pre-conference tournaments in November and December of this year. The season will end with sponsorships of conference championships — including the Big East, Big Ten and Big 12 — in March 2024.

Continental’s sponsorship of the new Toyota Gazoo Racing (GR) Cup series started at the end of March 2023. The road racing series takes place at seven venues and is held during IndyCar

Photo: MTD

Focus on Dealers

race events. Continental is the series’ official tire supplier and partner through 2026.

Roffler said the company is continuing its marketing of the General brand. The General brand’s Major League Fishing (MLF) sponsorship that began in 2012 will continue, as will its contract as sponsor of the ARCA racing series that began in 2016.

Late last year, the General brand became the title sponsor of the ArenaCross motocross series that “filled a hole in the company’s activation during that time of year.”

Both Roffler and Debbie Richards, Gold program manager, told dealers about opportunities in “getting involved in the (consumer’s) credit card decisions.”

Richards said Gold Dealers are important to Continental because “people matter. It’s why people buy from you instead of a chain.”

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Nearly 700 people attended the Continental Gold Dealer meeting, which was held in Playa Mujeres, Mexico.

Photo: MTD

Close to 40 new dealers have joined the Continental Gold Dealer program, says Charity (center), flanked by dealers during the program’s recent meeting.

Photo: MTD

Joe Maher, Continental product manager, explained the company’s position on electric vehicle tires. Maher retired at the end of last month.

Photo: MTD

Focus On Dealers

“We’ve had year-over-year positive growth and a lot of our current operators expanded their locations,” says Greg Bell, president of Tire Pros.

Doubling down on growth

TIRE PROS FOCUSES ON MOBILE INSTALLATION, DIGITAL TOOLS

AND MORE

By

Madison Gehring

New tools and programs were hot topics at American Tire Distributors Inc.’s (ATD) Tire Pros meeting in San Diego, Calif.

ATD highlighted many new tools and programs that Tire Pros dealers can take advantage of, such as mobile tire installation, self-service kiosks and more.

Greg Bell, president of Tire Pros, spoke with MTD about what the group wants to do in 2023 and the programs it’s offering.

EXPANSION ON ALL FRONTS

In 2021, Bell told MTD there were 440 owner-operators with a total of 609 locations in the Tire Pros network.

Now, Bell says Tire Pros has 445 owner-operators and 623 locations — with three of those locations having already come on line in 2023.

“We’ve had year-over-year positive growth and a lot of our current operators expanded their locations, which is where

a lot of those new location numbers come from,” he says.

Bell believes this expansion will continue, but the group isn’t “adding locations just to add them. It’s strategic growth. We are looking for owners we have commonality with and share goals with.

“I don’t want to be presumptuous about what anybody’s needs are, so our first step is looking at the location’s goals and objectives and seeing how we can help.”

California is home to the most Tire Pros locations, followed by Texas.

MOBILE TIRE SERVICE

Bell says Tire Pros set out to pilot its new mobile tire installation program in 2022.

James Baxter, owner Neighborhood Tire Pros, a two-location dealership based in Atlanta, Ga., and Chris Mortensen, owner of two-location Samaritan Tire Pros, which is headquartered in Minnetonka, Minn., were among the first Tire Pros members to take on the mobile tire installation idea.

When introduced, the program just consisted of sourcing and training.

“We had a great idea for it, but what we were really missing was that back-end software and technology to connect to the consumer,” says Bell. “That’s where our partnership with Avayler (software) comes into play. They helped us get that comprehensive end-to-end solution.”

Avayler software comes from a United Kingdom-based company, Halfords, which ATD brought to the North American market about two years ago.

Since Baxter and Mortensen began running their vans, three more Tire Pros dealers have added mobile tire service.

Mark Reece, owner of the two-location Benedetti Tire Service & Express Lube Tire Pros in Sebastopol, Calif., brought his van to the conference so other dealers could get a first-hand look at it.

Since the meeting, 40 more Tire Pros dealers have expressed interest in getting a van for their locations, according to Bell.

“My goal for this conference was to generate excitement and interest — and then midway through the year, we would maybe be at 20 or 25 vans. So this (has) far exceeded my expectations.”

Mobile tire installation allows dealers to reach another segment of customers, says Bell, and is “like an extension of the dealers’ brick-and-mortar locations.

“One of (our mobile van) operators remarked to me that a large majority of his customer-base (is) millennial Tesla owners. They want ease, they want convenience and they don’t want to talk to people. So this is perfect for them. We can come to the customer on the customer’s time.”

MORE DIGITAL TOOLS

Another program that Tire Pros highlighted was its Showroom of the Future concept. This included a digital consumer portal, self-service kiosks, a digital tire wall, key drop-off and more.

Tire Pros has been working on a pointof-sales system to unify its locations for a few years.

With the help of Tire Guru Software, Bell says “we’ve created a comprehensive, business management ecosystem” that gives the operator flexibility in communicating with customers.

More than 40% of Tire Pros members are using the new system.

Photo: MTD

TPMS: Chrysler Pacifica – 2022

DESCRIPTION & OPERATION Description

The Tire Pressure Monitoring System (TPMS) monitors air pressure in the four road tires. Sensor transmissions occur if there is a significant change in pressure. The Radio Frequency Hub (RFH) module has to be awake when sensor transmits to monitor spare pressure.

The system consists of tire pressure monitoring sensors attached to each road wheel through the valve stem mounting hole, an electronic display, and an indicator lamp. The system communicates through the RFH module. The receiver circuit for the TPMS system is integrated into the RFH module. If the vehicle is equipped with remote start, the external remote start antenna receives the signal that the RFH module decodes and the radio frequency signals transmitted by each of the vehicle tire pressure sensors.

The decoded information is used to determine if “warning” or “fault” conditions exist within the TPMS system. Upon detection of a warning or fault condition, the RFH module will send a request to the module that controls the indicator lamp and the text display via the vehicle bus system to illuminate or flash the indicator lamp. Also, upon detection of a warning or fault condition, the electronic display will send a request to sound the “chime.”

The RFH module will store all warning and fault conditions, placard pressure values and low-pressure threshold values (lamp ON and OFF) in memory that can be accessed through diagnostic communication.

If new sensors are introduced to the vehicle, the data stored for the sensor being replaced will be deleted.

The RFH module will store all wheel sensor IDs and locations and faults in memory that can be accessed through diagnostic communication. All other data values transmitted from each active wheel sensor shall be stored in the RFH module memory.

The RFH module automatically learns and stores the sensor IDs while driving within 20 minutes continuously above 32 km/h (20 mph) after a sensor has been replaced. The learning sequence will initi-

ate when the vehicle has been stopped for more than 20 minutes.

NOTE: A new sensor ID can also be programmed directly into the RFH module by using a RKE-TPM Analyzer

in conjunction with a Scan Tool. Once the new sensor ID has been programmed, the RKE-TPM Analyzer can be used to update the TPMS system by activating the sensor.

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The tire pressure sensor, valve stem and all valve stem components including the cap and valve core can be serviced and replaced individually.

Wipe the area clean around sensor/valve stem mounting hole in wheel. Make sure the surface of the wheel is not damaged.

Install the sensor (1) onto the valve stem by aligning the fl ats in the sensor (2) to the fl ats on the valve stem.

Operation

e TPMS system is designed to operate without loss of function for all OEM tires for this vehicle. Sensors, mounted to each road wheel as part of the valve stem, transmit a RF signal indicating their individual pressure to a receiver located in the RFHM.

If the system detects that the tire pressure in any road tire is low, the TPMS system will continuously illuminate an indicator lamp. If a system fault is detected, the indicator lamp will ash for 75 seconds, then remain on solid.

If the RFH module detects a warning or fault condition at ignition key ON, the display module will request a chime once per ignition cycle for the rst “warning” or “fault” condition detected. A “warning” or “fault” condition will remain enabled until the problem is corrected and removed/reset.

e RFH module continuously monitors for the receipt of tire pressure RF message transmissions from the wheel sensors for 20 minutes a er key OFF. e wheel sensor IDs and the location of each sensor are stored in the RFH module non-volatile memory during the initial Manufacturing Plant Process (MPP), or during a service procedure, as required.

e TPMS system will continue to warn the driver of low pressure as long as the condition exists, and will not turn o the indicator lamp until the tire pressure is at or above the placard. e system will automatically update and the TPMS indicator lamp will extinguish once the updated tire pressures are received.

When the outside temperature decreases, the tire pressure will decrease. Tire pressure should always be set based on cold in ation tire pressure (placard pressure). is is de ned as the tire pressure a er a vehicle has not been driven for more than three hours (and in outside ambient temperature). For a system fault, the system will return to normal once the RFH module receives a valid transmission from that sensor location.

Memorizing the tire pressure sensor ID

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NOTE: If a TPM-RKE Tool is not available, let the vehicle sit stationary for more than 20 minutes, and then proceed to step No. 4 below.

1. Using a TPM-RKE Analyzer Tool at the most current version available, select TPM Functions, then enter the model year and the body style of the vehicle, and for the Trigger Selection select PARK SENSOR.

2. Scan each TPMS sensor at each road wheel, and store each sensor ID in the correct location, including the spare tire, if equipped.

3. Connect the TPM-RKE Analyzer Tool to the scan tool, and then follow the programming steps outlined in the diagnostic scan tool for “Program Tire Pressure Sensor ID w/ TPM Tool” under “MISC” for the TPMS.

4. Drive the vehicle for a minimum of 20 minutes while maintaining a continuous speed above 24 km/h (15 mph).

5. With the scan tool, read TPMS DTCs.

TIRE

NOTE: When demounting or mounting the tire on the wheel, follow the tire changer manufacturer’s instructions while paying special attention to avoid damaging the pressure sensor.

1. Raise and support the vehicle.

2. Remove tire and wheel assembly and demount the tire from the wheel. NOTE: Replace the valve stem assembly with each tire change or when the tire is removed from the wheel. Install a new valve stem and valve stem core if they are removed from the wheel or valve stem.

3. To remove the sensor from the valve stem, remove the valve stem mounting fastener.

4. Remove the valve stem from the wheel.

Installation

Any time a sensor is to be reinstalled in a wheel, a new valve stem assembly must be installed to ensure airtight sealing. When installing a new valve stem, do not install it with the sensor attached. If it is a new sensor, separate the valve stem from the sensor first, then install the components separately. Replace the valve stem assembly with each tire change or when the tire is removed from the wheel.

1. Wipe the area clean around sensor/valve stem mounting hole. Make sure wheel surface is not damaged. When installing a new valve stem, a water or water/soap solution should be used.

2. Position the valve stem into the wheel mounting hole, with the flats at a 90-degree angle to the wheels lip, then pull through to seat with a standard valve stem installation tool.

3. Install the sensor onto the valve stem by aligning the flats in the sensor to the flats on the valve stem.

NOTE: When demounting or mounting the tire on the wheel, follow the tire changer manufacturer’s instructions to avoid damaging the pressure sensor.

4. Secure the tire pressure sensor to valve stem mounting fastener.

5. Mount tire on wheel and install the assembly on the vehicle.

6. Adjust air pressure to that listed on Tire Inflation Pressure Label (Placard). Make sure original style valve stem cap is securely installed to keep moisture out of sensor.

7. Remove the support and lower the vehicle.

8. Perform one of the following to make the system learn the new sensor ID:

• Use the TPM-RKE Analyzer, 9936, with the scan tool to program the RF Hub module with the tire pressure sensor ID. This is part of the TPMS Diagnostic Verification Test.

• Once the vehicle has remained stationary for more than 20 minutes, drive vehicle for a minimum of 20 minutes while maintaining a continuous speed above 20mph (32 km/h). During this time, the system will learn the new sensor ID. This is part of the TPMS Diagnostic Verification Test. NOTE: If a sensor cannot be trained, refer to appropriate diagnostic information. ■

Information for this column comes from the tire pressure monitoring systems data in ProDemand, Mitchell 1’s auto repair information software for domestic and import vehicles. Headquartered in San Diego, Mitchell 1 has provided quality repair information solutions to the automotive industry since 1918. For more information, visit www.mitchell1.com

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