Modern Tire Dealer - August 2020 by EndeavorBusinessMedia-VehicleRepairGroup

I LOVE YOU. I LOVE TIRES. I LOVE YOUR TIRES.

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ALL-WEATHER TIRES

What you need to know about this growing segment Pandemic paves the way for secondary financing How to fight big box stores, hold margins and survive a pandemic: 3 Questions with Tire Source Data-driven: Construction fleets want more info than ever, says STTC August 2020 | Vol. 101, No. 8 | $10 | www.moderntiredealer.com

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The Industry’s Leading Publication August 2020, Volume 101, Number 8

F E AT U R E S 34 Joe Caltabiano of Bruneel Point S in Boise, Idaho, can offer his customer secondary financing to pay for his vehicle repair.

DEPARTMENTS

How these products could affect the future of winter and all-season offerings

4 Editorial

News and navigation tools for MTD’s website

8 Industry News Products, plants and ‘value for money’: Hankook’s Lee sets priorities for rest of 2020

16 Your Marketplace What went up has already come down: Why consumer tire demand dropped in June

How to battle big box stores, maintain margins and survive a pandemic

Three questions with Tom and TJ White from Tire Source

Words matter: Decoding the union’s reasoning behind newly proposed tariffs

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The growth of all-weather tires

Pandemic paves the way for secondary financing

Consumer needs are obvious in tough economy

Curing ride control complaints

We examine three common customer issues

18 Numbers That Count

Commercial Tire Dealer™

Relevant statistics from an industry in constant motion

59 Business Insight First, understand — then offer: How to sell customer financing more effectively

60 DSP Insight Lessons learned for your P&L: COVID-19 forced you to change for the better. Keep it going

62 Mergers and Acquisitions Sometimes, less is more: How commercial tire dealers can be more profitable

64 Creating a Buzz

Ford/Lincoln MKT — 2011-19

69 Products 72 Ad index 74 Classified ON THE COVER: ©GETTYIMAGES.COM

Modern Tire Dealer is a proud member of:

w w w . M o d e r n T i r e D e a l e r. c o m

Construction fleets want more info than ever, says STTC

50 ‘A more normal state’ Continental exec discusses construction tire demand, new General OTR tire line

Yes, you do have time to communicate: Make employees your brand ambassadors

65 TPMS

Data driven

Bridgestone invests in tire tracking

iTrack system monitors ultra-large OTR tires

AG Tire Talk

‘The era of trial’

Commercially Viable

Tire/wheel conversion, RCI and lead-lag: Factors to keep in mind when upgrading tires

Sailun exec talks value truck tires

Editorial

Words matter

DECODING THE UNION’S REASONING BEHIND NEWLY PROPOSED TARIFFS By

Mike Manges

ariffs are in the news again. This time around, consumer tires made in South Korea, Taiwan, Thailand and Vietnam are now under the microscope. The United Steelworkers (USW) got the ball rolling in May by filing a petition with the Department of Commerce (DOC) and the International Trade Commission (ITC), which the union publicized with a news release. Just before press time, the ITC voted to continue its investigation of whether tires from these countries have been “dumped” into the U.S. It will take a long time for this process to play out and there will be numerous milestones along the way. We’ll probably see a few more news releases from the USW, plus statements from the opposing side. But while the story is still “young,” I wanted to address some of the points made in the union’s initial news release. These thoughts are mine alone and may not mirror yours. Donning my public relations hat, let’s analyze some of the words that the USW chose to present its case out of the gate. The old PR strategy of establishing control of the “narrative” comes to mind here. “This deluge of unfairly traded imports hurt our domestic industry and workers, including many USW members. Even though demand for PVLT (passenger vehicle light truck) tires increased, domestic producers were still forced to grapple with reduced market share, falling profits and lost jobs.” There is a lot to unpack here. First, whether imports have been “unfairly traded” has yet to be determined. As stated, the ITC is working on this now. “Reduced market share” is a nebulous term that calls for clarification. Reduced share by product segment? Specific geography? Channel? A manufacturer that pumps tires into both the replacement and original equipment channels can conceivably lose share in one or both areas – and across multiple product segments or lines. (Then there is our belief that market share gains and losses are usually the result of what happens at the sales counter. According to MTD research, the tire retailer directly influences the sale 70% of the time.) “Falling profits” and “lost jobs” also are vague terms in this context. Have subsidies truly driven decisions to permanently close tire manufacturing plants in the U.S.? Or were some plants already slated for closure due to other reasons, like cost-cutting or perceived market obsolescence of the products that were made there? And how does automation factor into the situation? “Slowing Chinese imports was vitally important to saving the domestic tire industry. But Chinese producers found a way around our safeguards and other bad actors are eager to take advantage of U.S. demand.” This quote refers to past tariff actions. Export of Chinesemade tires to the States reached their zenith in 2014 at more than 60 million units. Since then, consumer tire imports from China have decreased by 94%. (Thailand, by the way, is now the biggest

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Tariffs could be applied to tires made in South Korea, Taiwan, Thailand and Vietnam.

exporter of consumer tires to the U.S., having shipped 45.1 million units in 2019, according to MTD research.) So, it is true that tariffs have had a big impact on the number of units shipped to the U.S. from China. But the claim of “saving the domestic tire industry” could be considered a bit over-the-top. Was the domestic industry that destitute prior to the application of tariffs on Chinese tires? The words “bad actors” paint a dramatic picture, as well. Is a tire manufacturer domiciled in South Korea, Taiwan, Thailand or Vietnam morally worse or better than a tire manufacturer that is based in another country? It’s tough to link facts to such an emotionally charged statement. “The only thing domestic producers should be worrying about right now is how to restart their operations safely. Yet even as they face falling demand in the wake of this deadly disease, they’re still struggling with unfairly traded imports that have continued largely unabated. Our only chance to preserve thousands of good, family-sustaining jobs is to stem this tide.” By inserting COVID-19 into the conversation, the union is once again making an emotional appeal. Several tiremakers temporarily shut down their U.S. plants during the first quarter due to a sudden drop in consumer demand and concern for the safety of their employees. But has any company closed a plant specifically because of imports? The fact that workers at off-shore tire factories make considerably less than their counterparts has never been in dispute. But the decision to “rationalize” jobs is often made after more complex, internal calculations have concluded. We really don’t know how much of a direct impact imports have on these decisions. It will be interesting to read carefully crafted statements from parties on both sides of the tariff issue as MTD continues to track this story. ■ If you have any questions or comments, please email me at mmanges@10missions.com.

MTD August 2020 8/5/20 8:42 AM

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ModernTireDealer.com DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER

MTD website keeps you informed MTD’s website provides you with breaking news, feature articles, links to exclusive MTD research and blogs, new products and much more 24/7. Check it out today!

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eNewsletters Sign up now for Modern Tire Dealer eNewsletters. We’ll send you the latest news and most popular articles. Go to: www.moderntiredealer.com and scroll to the bottom of the page to sign up. See “Be the First to Know.”

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It remains to be seen whether or not new tariffs will be imposed on passenger and light truck tires imported from South Korea, Taiwan, Thailand and Vietnam.

Readers continue to follow COVID-19 and tariffs COVID-19 continues to have an influence on all aspects of the tire industry, from impacting the possible sale of one of the largest independent tire dealer chains to tire companies’ financial outlooks. Also of keen interest to www.moderntiredealer.com readers has been the investigation of possible new tariffs on passenger and light truck tires. Here are our top 10 most read news items over the last month. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Les Schwab puts sale process on pause GB Auto Service acquires 32 more stores PLT tire tariff investigation advances June has brought tire dealers’ best week of 2020 ITC votes unanimously to continue tariff investigation Finding young techs: Black’s Tire provides opportunity, career paths Michelin launches next-generation Pilot Sport Dealers will play key role in recovery, says Alliance’s Nanavati PPP loan deadline extended Hankook’s president looks ahead to rest of 2020

HOME OFFICE 3515 Massillon Rd., Suite 350 Uniontown, OH 44685 (330) 899-2200, fax (330) 899-2209 Website: www.moderntiredealer.com PUBLISHER Greg Smith, ext. 2212 gsmith@10missions.com EDITORIAL Editor: Mike Manges, ext. 2213 mmanges@10missions.com Managing Editor: Lori L. Mavrigian, ext. 2216 lmavrigian@10missions.com Senior Editor & Digital Projects Editor: Joy Kopcha, ext. 2215 jkopcha@10missions.com PRODUCTION Art Director: Zach Pate Graphic Designer: Nicole Olson Production Artist: Lauren Coleman Production Manager: Karen Runion, ext. 2210 krunion@10missions.com SALES South and Texas: Greg Smith gsmith@10missions.com (330) 899-2200, ext. 2212 Midwest: Bob Marinez bmarinez@10missions.com (330) 899-2200, ext. 2217 West Coast: Marianne Dyal /The Dyal Company mdyal@10missionscom (706) 344-1388, mobile (619) 990-5536 Automotive Aftermarket: Dan Thornton djtinc@gmail.com (734) 676-9135, mobile (734) 626-4950 Classified Sales: Bob Marinez bmarinez@10missions.com (330) 899-2200, ext. 2217 Reprint Sales: Karen Runion krunion@10missions.com (330) 899-2200, ext. 2210 CUSTOMER/SUBSCRIPTION SERVICE (888) 239-2455, fax (888) 274-4580 bobitpubs@omeda.com

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Modern Tire Dealer (ISSN: 0026-8496) is published monthly by 10 Missions Media, LLC, 571 Snelling Ave N, St. Paul, MN 55104-1804. Copyright © 2020 by 10 Missions Media, LLC. All rights reserved. Modern Tire Dealer content may not be photocopied, reproduced, or redistributed without the consent of the publisher. Periodicals postage paid at St Paul, MN and additional mailing offices. POSTMASTERS Send address changes to: Modern Tire Dealer, 571 Snelling Ave N, St. Paul, MN 55104.

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MTD August 2020 8/5/20 4:41 PM

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Industry News

Products, plants and ‘value for money’ HANKOOK’S LEE SETS PRIORITIES FOR REST OF 2020

e are hoping there will be lots of pent-up demand for new tires, so we are building up stocks in regional distribution centers and preparing additional segments and new product launches,” says Sooil Lee, president of Hankook Tire America Corp., as the U.S. market emerges from pandemic-related lockdown. Hankook has taken a number of steps to ensure a steady supply of tires as miles driven — and in turn, overall consumer tire demand — ticks upward. “We have continued to monitor our SKU system to ensure we can meet market demand, both during and after the COVID-19 pandemic,” says Lee. “We have maintained regular contact with our dealer and fleet customers to ensure we continue to provide value and ensure inventory levels remain adequate. Additionally, as business begins to pick up again, we expect the lead time between production and sales to be much shorter, so we also are reviewing optimization of production origin and plant management.” Hankook resumed production at its consumer tire plant in Clarksville, Tenn., in late-May after a two-week shutdown. At full capacity, the plant can manufacture 13,900 units per day, according to MTD research.

‘THE TRADING DOWN EFFECT’

While optimistic, Lee harbors no illusions about how the COVID-19 pandemic has impacted the tire industry, commenting that “the entire industry suffered greatly during the first half of the year. The drop was especially seen in the original equipment sector. “We are closely monitoring supplies to ensure that there is no issue in supplying our OE customers. Part of our annual manufacturing plans include OE tire production, so we are shifting our

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production schedule in line with the car makers. It’s currently difficult to predict when the automotive industry will be back to normal.” Currently, Hankook’s overall volume “is now less than we originally planned—but this is the case for everyone.” The pandemic hasn’t halted the company’s product development plans, he notes. “We are taking this time to execute many more tests to develop even more competitive products. We also are further diversifying raw material vendors and executing quality control tests to develop new compounds. We believe this is an opportunity to further explore innovative ideas so that we are prepared when things are back to normal. “Fortunately, none of our product launches have been affected by COVID19,” he says. “We have also continued to release new sizes to some of our core existing products, such as our Kinergy line, as scheduled, and we plan to continue our dealer and consumer promotions.” Hankook recently announced that it will supply the 2021 Chevrolet Trailblazer with its all-season Hankook Kinergy (H436) product. “In the short-term, we expect relatively stronger demand for budget-segment products and growth in all-weather product markets, as we expect consumers will gravitate towards cost-effective, all-season options, rather than seasonal products,” says Lee. “Another movement we are seeing is the ‘trading down effect.’ People are going for more value-for-money products. To accommodate this movement, we are actively promoting Hankook’s second brand, Laufenn. In difficult times like these, we must consider end-user value.”

PLANS FOR PLANTS

“The COVID-19 crisis was something unexpected,” says Lee, “and many people

“Another movement we are seeing is the ‘trading down effect,’” says Sooil Lee, president of Hankook Tire America Corp. “People are going for more value-formoney products. To accommodate this movement, we are actively promoting Hankook’s second brand, Laufenn.”

were unprepared. Quarantine led to online shopping, which emphasized e-commerce and obtaining inventory from distribution centers, and therefore, supply chain enhancement plans were executed and is something that will continue to be reviewed.” Looking beyond the present situation, Lee says Hankook will continue to invest in artificial intelligence technology and what he calls “next-generation tires,” including products for electric vehicles. “For now, in the short-term, we will be focusing on normalizing and enhancing the efficiency of our plants,” he notes. “Our mid- to long-term plans include plant expansion and modernization for production innovation, such as monitoring regional sales strategies and smart factory technology applications. “We are working on increasing U.S. plant production by moving the export supplies and OE portfolio to be manufactured in (Hankook’s) Tennessee plant. This way, we will be able to supply our U.S. customers more efficiently with faster feedback to different requests.” — Mike Manges MTD August 2020 8/6/20 11:05 AM

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Industry News

Bites ‘Smart’ tires are coming Nokian Tyres plc says ‘smart’ tires that can relay data to drivers will be common in electric vehicles in the next five years. Sensors will monitor weather and road conditions, plus tire wear and inflation level.

U.S. AutoForce opens D/C U.S. AutoForce will open a distribution center in Salt Lake City, Utah, this month. The company, which is a division of U.S. Venture, also owns Corona, Calif.-based Tire’s Warehouse, which operates distribution centers in Arizona, California and Nevada.

Yokohama earns Subaru award Yokohama Tire Corp. has earned a supplier’s award from Subaru of Indiana Automotive for the third year in a row. Yokohama supplies its Avid S34P for the Subaru Impreza and Avid GT S35 for both the Subaru Legacy and Outback.

Hankook wins Taycan fitment Hankook Tire America Corp. will equip the all-electric Porsche Taycan with its Ventus S1 evo 3 tires. The Taycan will be fitted with size 225/55R19 XL 103Y tires on its front axle and size 275/45R19 XL 108Y tires on its rear axle, say Hankook officials.

Tire Discounters adds another store

incinnati, Ohio-based Tire Discounters Inc. has opened a new location in Huntsville, Ala. “Safety has always been our top priority,” says Chrissy Niese, the dealership’s chief customer officer and senior vice president. “We’ve added options like curbside drop-off and text-to-pay so that we can help our customers safely maintain their vehicles while following social distancing guidelines.” Earlier this year, Tire Discounters said it wants 135 stores in place by the end of summer. “We chose to open new stores in existing markets to fill out those markets and serve our existing customer base where they are,” says Anna Wood, Tire Discounters recently opened the dealership’s managing director. a store in Huntsville, Ala.

ITC will continue tariff investigation

he International Trade Commission (ITC) has voted unanimously to continue its investigation of passenger and light truck tires from South Korea, Taiwan, Thailand and Vietnam. The ITC also has agreed that tires from Vietnam are being subsidized by that country’s government. The ITC also has agreed that tires from Vietnam are being subsidized by that country’s government. The United States Department of Commerce valued imports of tires from South Korea, Taiwan, Thailand and Vietnam at more than $3.9 billion in 2019. The investigation process started in May when the United Steelworkers union filed a petition stating that the domestic tire industry and U.S.-based tire plant workers are being harmed by imports from the aforementioned regions. Alleged dumping rates range from 5.48% to 217.5% and according to the ITC, break down as follows: South Korea (42.95% to 195.2%); Taiwan (20.57% to 116.14%); Thailand (106.36% to 217.5%); and Vietnam (5.48% to 22.3%).

Giti unveils all-terrain LT tire The GT Adventuro ATX all-terrain light truck tire from Giti Tire (USA) Ltd. is available in nine P-metric sizes. By the end of 2020, it will be available in 27 P-metric and LT sizes for 74% coverage of the North American all-terrain segment.

Bridgestone, Microsoft team up Bridgestone Corp. is working with Microsoft to develop a monitoring system that detects tire damage in real time, which will be the first system of its kind, according to the tire manufacturer. Bridgestone’s Tire Damage Monitoring System would use Microsoft’s cloud framework and sensors to pick up and convey data.

Continental connects units Continental AG has folded its commercial specialty tires, two wheel tires and Hoosier racing tire divisions into a newly created specialty tires business unit that will be led by Wolfgang Thomale.

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Right to Repair scores big win

oters in Massachusetts will have the opportunity to decide in November whether independent auto service facilities should have access to telematically transmitted vehicle diagnostic and repair data. The Massachusetts Right to Repair Committee turned in 24,000 signatures, well above the threshold required to place the issue on the state’s ballot. In addition, a coalition representing vehicle manufacturers has withdrawn a compliant that right to repair advocates believe was intended to prevent voters from weighing in on the issue. Tommy Hickey, director of the Massachusetts Right to Repair Committee, told MTD that recent developments add up to a “significant win for (vehicle) owners and independent repair shops.” He said that the withdrawal “of the car manufacturers’ challenge means we have been cleared to officially be on the November ballot. We have thousands of consumers and independent shops alike who have fought for an open repair market now and into the future, and now the people of Massachusetts can once again vote on this issue.” He added that the upcoming ballot initiative “will update the Right to Repair law to cover technological advancements” that were not covered in past legislation “so that consumers can now and tomorrow choose where to get their car repaired and allow for independent repair shops to work in a competitive and robust market.” According to the Auto Care Association, 87% of new cars in the United States will have the ability to transmit diagnostic and repair data via telematics. MTD August 2020 8/6/20 3:43 PM

A LONG WAY

TOGETHER

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Industry News

Bites TBC adds protection plan TBC Brands LLC has introduced a road hazard protection plan for select consumer and trailer tire lines under the Delta, Eldorado, Multi-Mile, National, Sumitomo and Power King brands. The one-year plan is available at no added cost to the consumer.

Continental plans big cuts Continental AG is adjusting its financial structure to reflect the decrease in global vehicle production. The company plans to minimize overcapacities, reduce working capital and enact other policies to cut expenses by several hundred million euros by 2022.

Pirelli considers co-CEOs Pirelli global CEO and Vice Chairman Marco Tronchetti Provera has asked the company’s board to consider Angelos Papadimitriou as his possible successor. Papadimitriou would initially serve as co-CEO. The move is part of a reorganization aimed at broadening Pirelli’s management team.

Horizon launches UHP tire The new Supermax UHO-1 all-season ultra-high performance tire from Horizon Tire Inc. is available in nine sizes. Seven more sizes are in development. The tire fits wheels ranging from 17 inches to 24 inches in diameter.

GM recognizes tiremakers Bridgestone Corp., Continental Tire the Americas LLC, Goodyear Tire & Rubber Co., Hankook Tire America Corp., Maxxis International-USA and Michelin North America Inc. received the General Motors Supplier of the Year Award.

Alliance earns AGCO honors Alliance Tire Group Ltd. has been named North American Direct Materials Supplier of the Year by AGCO, the world’s largest farming equipment manufacturer focused solely on the agriculture industry, according to Alliance officials.

Apollo plant is running Apollo Tyres Ltd.’s new plant in India is up and running. It will have the capacity to make 15,000 passenger and 3,000 radial truck and bus tires per day by 2022. The plant is Apollo’s seventh worldwide.

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Michelin launches next-gen Pilot Sport

ichelin North America Inc. has introduced its latest ultra-high performance all-season tire, the Michelin Pilot Sport All-Season 4, in 105 sizes. The tire provides 4% better dry braking, 5% better wet braking and 10% more snow traction than its predecessor. The Pilot Sport All-Season 4 features an asymmetric tread pattern with more rubber on the outer shoulder to provide enhanced lateral grip; a race-inspired tread compound “engineered with maximum levels of silica to grip slick pavement;” and a large rain groove that evacuates water from under the tire to prevent hydroplaning.” It also contains Michelin’s 360-Degree Variable Sipe Technology, which consists of full-depth, interlocking sipes for improved rain and snow traction, and the company’s Dynamic Response Technology, which helps ensure that forces and temperatures are distributed evenly for longer tread life. “This tire covers 85% of the market,” says Brand Director Matthew Cabe, and fits “the most popular The new Michelin Pilot Sport Allhigh-performance vehicles being sold today.” Season 4 is available in 105 sizes.

2020 SEMA Show, AAPEX are canceled

rganizers of the Specialty Equipment Market Association (SEMA) Show and Automotive Aftermarket Parts Expo (AAPEX) have canceled both in-person events for 2020, due to COVID-19 and ongoing restrictions by the State of Nevada limiting the size of gatherings. Additionally, the Tire Industry Association has announced it will delay its centennial celebratory events, which were to occur in Las Vegas alongside the SEMA Show, until 2021. AAPEX will go on in 2020, but in a new format. Organizers are planning a virtual event. Those specific details were not available as of press time. SEMA says it is considering a virtual event for Both SEMA and AAPEX organizers are issuing refunds to exhibitors. this year, but hasn’t yet confirmed those plans.

Bridgestone unveils new strategy, tagline

o support its stated goal of becoming a “leader in sustainable mobility and advanced solutions,” Bridgestone Corp. says it will focus on the following three strategies:

• leverage sustainability as a competitive advantage and a core tenet of its business; • enhance the solutions side of its business through a new platform, Bridgestone Tire and Diversified Products as a Solution, and; • evolve and grow to a “mobility solutions business” by utilizing the strength of its tire and rubber business.

In a related announcement, Bridgestone also unveiled a new company tagline, “Solutions for Your Journey,” which will replace its current tagline, “Your Journey. Our Passion,” during the second half of 2020. A full global launch will take place in early-2021. The new tagline “signals our company’s ongoing transformation to the world and communicates our long-term vision to be a sustainable solutions company,” says Bridgestone CEO Shu Ishibashi. “We are excited for the future as Bridgestone advanced to offer world-class mobility solutions that deliver increased value for our customers and society.” MTD August 2020 8/6/20 3:44 PM

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Industry News

TIA focuses on tire registration, infrastructure

Bites TIA elects Pangle, Wolfe The Tire Industry Association’s board has elected Jim Pangle of Fountain Tire Ltd. as board secretary. Mike Wolfe of Southeastern Wholesale Tire Co. will serve a third term as the association’s board treasurer. Both terms are effective on Nov. 2.

Triangle adds senior engineer Tire industry veteran Brad Wurst has joined Triangle Tire USA as the company’s senior development engineer. Wurst will work at A3T, the company’s technical center in Akron, Ohio. He most recently worked for Smithers Material Science and Engineering.

VW taps Bridgestone for EV The ID.3 passenger car, Volkswagen’s first allelectric vehicle, will use a custom Bridgestone Turanza that contains Bridgestone’s low rolling resistance ENLITEN Technology.

NTD takes chamber award National Tire Distributors Inc. (NTD), a subsidiary of American Tire Distributors Inc., has received the Burlington, Ontario, Chamber of Commerce’s Business Excellence Award in the wholesale category. NTD operates 25 distribution centers throughout Canada.

Vulcan/B&J form JV Vulcan-Vulcap Industries Inc. and B&J Rocket Sales AG have formed a joint venture in which B&J Rocket will represent and carry Vulcan’s full tire repair line across its global distribution platform.

TireHub marks two years The joint venture between Bridgestone Americas Inc. and Goodyear Tire & Rubber Co. TireHub is marking two years in business. TireHub has 70 distribution centers nationwide.

Autopromotec jumps to ‘22 The organizers of Autopromotec have moved the event to May 2022 due concerns around COVID-19. The show was originally slated for May 2021 in Bologa, Italy.

Love’s adds locations Love’s Travel Stops has opened seven Love’s Truck Care and Speedco locations in six states. The outlets sell commercial truck tires and also provide lube and light mechanical services for trucks.

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ndependent tire dealers should keep an eye on two legislative issues during the remainder of the year, according to the Tire Industry Association (TIA): tire registration and infrastructure legislation. TIA is urging the National Highway Traffic Safety Administration (NHTSA) to consider the impact of “crippling” fines that could be levied on dealers who incorrectly register consumer tires at the point of sale. According to TIA, “the fine or failure to register tires or a retailer mistake in registering tires, if not addressed, would be set at up to $22,329 per violation.” TIA and the U.S. Tire Manufacturers Association are working to develop “an industry consensus regulation” for NHTSA’s consideration with the stipulations that: • no monetary fines should be imposed upon dealers for the first two violations; • monetary penalties could only be assessed after a tire dealer or tire distributor has been issued two written warnings; • a third violation could not exceed $500; • any subsequent penalty could not exceed $1,000, and; • no more than one penalty could be assessed on a single day. “We have to meet with tire manufacturers” in order to finalize a few, remaining “issues, and then present to NHTSA,” says TIA CEO Roy Littlefield Jr. “And we have to keep (legislators) on the hill up-to-date” on how the issue is progressing. TIA is pushing for electronic tire registration. “There are better ways of doing (registration) than by hand, with paper and pencil. As long as we continue to use that method, we will continue to see a lot of mistakes. “Hopefully, we’ll come out of this with a registration system that is vastly improved and we won’t have burdensome fines for tire dealers.” At some point, TIA also will tackle the issue of commercial truck tire registration, he says. “We have to get the passenger tire side down and then move onto truck tires.” Ratification of a potential infrastructure bill could directly impact tire dealers, as well, says Littlefield. In early July, the U.S. House of Representatives passed a $1.5 trillion infrastructure bill that drew

immediate criticism from Senate Majority Leader Mitch McConnell. (As of press time, the Senate had not voted on the bill.) TIA believes that the following, infrastructure-related, revenue generation mechanisms will generate “much disagreement:” • Increase in motor fuel taxes. “State governors are almost united in their support of a major motor fuel tax increase,” TIA says. “Proposals being considered range from increasing the motor fuel tax by five cents to eight cents a gallon a year for five years to increasing the tax to $1 per gallon.” TIA notes that “even if the gas tax is raised significantly, it would still not be able to cover the desired amount of funding” for road repairs and other needed actions. TIA, for the record, says it intends to “stay neutral” on small gas tax hikes. • Privatization of highways. Some states are leasing public roads to private companies via lease deals that can last up to 99 years. “In these lease arrangements... the private company gives the state a great amount of money up front, which is appealing to governors who are facing severe shortfalls. To make this a good business move, the private company either increases existing tolls or puts in new tolls,” which can be particularly onerous for interstate truck drivers, who already pay excise taxes on tires and parts, as well as a tax on diesel. TIA opposes highway privatization. • Tax proposals. If a motor fuel tax is not possible, reinstating the federal exise tax (FET) on tread rubber or passenger tires, or increasing the FET on truck tires by 10% are all opposed by TIA. TIA, which is a member of the Family Business Estate Tax Coalition, will continue to support the Death Tax Repeal Act. TIA believes that the tax’s elimination “would spur job creation and grow the economy. “Many studies have quantified the job losses caused by the death tax. Last year, the Tax Foundation and Heritage Foundation both found that the U.S. could create over 100,000 jobs” through a repeal. ■ MTD August 2020 8/6/20 3:45 PM

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7/28/20 12:51 PM

Yo u r M a r k e t p l a c e

What went up has already come down By

John Healy

WHY CONSUMER TIRE DEMAND DROPPED IN JUNE

n last month’s column, I discussed how dealer sell-out was showing unexpected signs of recovery. Since then, our conversations with dealers suggest that consumer demand for passenger and light truck replacement tires fell sharply in June versus same-period levels last year. Fifty-six percent of respondents said they saw a year-over-year demand decrease in June, while 22% experienced either positive or flat trends for the month. (In June 2019, 54% of dealers reported sell-out growth.) Our contacts have noted that weakness in consumer demand can be attributed to the reinstatement of stay-at-home orders and the renewed imposition of business lockdowns due to the resurgence of COVID19 cases. These actions have prompted less personal vehicle use. We believe that three factors drove the pre-June increase in activity: extra cash in the consumer’s pocket thanks to government stimulus programs; catch-up on deferred maintenance as wallet spend was realigned due to lack of summer vacations; and Walmart keeping auto service centers dark during the early part of the summer, which allowed traditional tire outlets to capture share. However, despite June’s drop, there are still positive signs. For example, Apple’s Mobility Trends Report has indicated that people are starting to search more for driving directions. This activity bottomed out at down 62% in early April. As of July 14, trends in the United States were up

22% compared to the baseline, while one month ago they were up 40%. Given all of this, we see retail prices as and holding firm. Although tire industry trends profit levels are often held hostage to raw material cost inflation, weather patterns, and competitive dynamics, we maintain the overall view that the market appears to be rebounding and bouncing back faster than expected. We are hearing that fill rates and sourcing of supply is somewhat constrained in the current environment. And as COVID-19 infections continue to climb and governments place additional restrictions on businesses and people, we believe consumers will drive less than they did earlier this summer, leading to decreased tire demand.

PRODUCT MIX TRENDS

Our latest survey reveals that tier-three brands have enjoyed more growth than tier-one and tier-two brands since my most recent column. This is a reversion from what we have recently witnessed but it also is not surprising as the economic backdrop surrounding COVID-19 continues to pressure the economy. Consumers will only buy tires if they absolutely need them. And when they do, we believe they will opt for value brands in order to conserve money. Looking past the pandemic, we maintain our previously stated belief that consumers will opt for higher-tier tires. But as for now, we believe that consumers will simply go with cheaper options.

Snapshot of dealers’ PLT tire volumes (year-over-year change) Apr-18

May-18

Jun-19

Apr-20

May-20

Jun-20

Average

Increase

54%

46%

54%

25%

22%

40%

Flat

17%

22%

25%

12%

50%

22%

30%

Decline

29%

32%

21%

88%

25%

56%

30%

Total

100%

SOURCE: NORTHCOAST RESEARCH ESTIMATES

16 02_MTD_News-Numbers.indd 16

We expect that tier-one and tier-two manufacturers will continue to remain disciplined in their efforts to manage their price/volume trade-off in order to maximize operating profit instead of market share. We have been pleased with the disciplined approach to production schedules that we have seen at the manufacturing level. Meanwhile, global inventory levels remain relatively lean. Tire dealers and wholesalers are being tactical with their approach to inventory allocation, given legislative moves, recent pricing actions and volatile raw material prices. Downstream players have been directing orders in a way that capitalizes on pricing spreads in the market.

THE LATEST ON RAWS

We note that significant cost pressures in raw materials have remained but are beginning to ease upwards sequentially, as last month’s prices were projected to fall 16.9% year-over-year. In assessing raw material price movements, we note that carbon black continues to see its cost pressures subside on a yearover-year basis, as the decrease of 11.9% in June is the ninth consecutive month that prices have fallen for this particular input. This decreased pricing has continued the massive turnaround for carbon black. Crude oil prices have seen extreme cost pressures over the last four months, as noted in previous columns. In June, oil prices fell 29.9%. Natural rubber prices, which are tied to oil, fell substantially on a year-over-year basis by 28.4% in June. Finally, synthetic rubber costs have remained negative for 15 straight months, year-over-year, and price pressures on reinforcement items continue to track negative year-over-year. ■ John Healy is a managing director and research analyst with Northcoast Research Holdings LLC based in Cleveland, Ohio. Healy covers a variety of subsectors of the automotive industry.

MTD August 2020

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NumbersThatCount

Relevant statistics from an industry in constant motion 45.8%

Percent of surveyed technicians at independent automotive repair shops whose top concern for the remainder of this year was the ability to work full-time/enough to support their family. SOURCE: IMR INC., AUTOMOTIVERESEARCH.COM

59%

Percent of tire dealers with one location. SOURCE: 2020 MTD JANUARY FACTS ISSUE

37.2%

Percent of technicians at independent repair shops who felt their greatest challenge for the remainder of 2020 will be keeping themselves safe at work due to COVID-19. SOURCE: IMR INC., AUTOMOTIVERESEARCH.COM

86.8%

Percent of surveyed independent automotive repair shops that reported reductions in pay following the onset of the COVID-19 crisis.

WHAT ARE THE TOP CHALLENGES YOUR SHOP WILL FACE FOR THE REMAINDER OF 2020?

(Survey of 500 independent automotive repair shops, May 2020)

55%

Keeping staff/customers safe/ social distancing

44%

29%

Making payroll/Keeping techs working

21%

Getting customers into the shop/Keeping shop running/ Returning to normal hours

Recovering financially from COVID-19

34%

Rising costs of parts/Keeping prices affordable for customers

Getting parts on time

29.2%

Getting parts/Finding suppliers with parts in stock

15.2%

9.8%

Finding a way to compete with larger chains/dealerships

SOURCE: IMR INC., AUTOMOTIVERESEARCH.COM

47%

Percent of profits at independent tire dealerships from automotive service. SOURCE: 2020 MTD JANUARY FACTS ISSUE

63%

Percentage the size of a Ford Mustang has increased since its introduction in 1964. The reason for the increase? Safety, including crash beams, airbags and crumple zones. Expect cars to get slightly taller in the next 10 years because the battery in electric vehicles sits under the seats. SOURCE: WWW.ZUTO.COM

18 02_MTD_News-Numbers.indd 18

MTD August 2020 8/5/20 8:07 AM

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All-Weather Tires

T The Firestone WeatherGrip, introduced to the U.S. and Canadian markets in 2019, is the first all-weather touring tire from Bridgestone.

The growth of all-weather tires

HOW THESE PRODUCTS COULD AFFECT THE FUTURE OF WINTER AND ALL-SEASON OFFERINGS By

he latest category of tires that offers year-round consumer convenience also promises to extend and add to one of the most common struggles independent tire dealers face: stocking an even wider assortment of products. Because many North American drivers who live in four-season climates haven’t yet adapted to seasonal tire changeovers, all-weather tires have come to the market offering an attractive solution, at least on paper. But of the 10 tire manufacturer representatives who responded to MTD’s recent series of questions about all-weather tires, none said they expect the products to replace all-season tires in the near future. That means tire dealers will have to continue to teach “Tire 101” at the sales counter and educate consumers about the performance and design differences of these tire categories with similar-sounding names. And dealers will have to stock another small but growing category of tires. Some of the companies that answered our questions already have an all-weather tire on the market, the most recent coming from Michelin North America Inc. in July. Nexen Tire America Inc. says it has a product in development, and Hankook Tire America Corp. will release its first all-weather tire in September. We asked tiremakers to take a deep dive into all-weather products, covering everything from demand, where all-weather tires sell most robustly and a description of the typical all-weather tire customer to what the all-weather category means for the bigger all-season consumer tire segment. Here’s what they had to say: MTD: What’s driving demand for

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20 03_MTD_Feature-3Questions.indd 20

MTD August 2020 8/6/20 3:53 PM

the all-weather category? Who is the typical all-weather tire customer? Abhishek Bisht, global head of new markets and channels for Apollo Tyres Ltd., parent company of Vredestein: The demand for this category comes from customers wanting a single tire solution for year-round capabilities. It is more cost-effective and time-efficient to run an all-weather tire year-round, as opposed to alternating between an all-season tire and a dedicated winter tire in regions that experience snow and slush. The typical customer is someone who has to keep all four seasons in mind, with additional emphasis on colder weather capabilities. Daniel Kelly, product planner at Bridgestone Americas Tire Operations LLC: As technology continues to advance and manufacturers are able to deliver tires with fewer performance trade-offs, we expect the all-weather category will continue

to grow and expand, particularly in the northern regions of the U.S. and across Canada. One large compromise drivers in certain regions have traditionally faced is having to switch to dedicated winter tires in colder months. All-weather tires give drivers the ability to keep the same tires on year-round with the confidence of 3-Peak Mountain Snowflake-certified performance. All-weather tires are designed to perform across a variety of conditions and are suited for drivers in any region. They are an ideal upgrade for drivers living in regions that experience winter weather but wish to remain on a single set of tires year-round. Dealers can look for tire manufacturers to continue to innovate and improve the wear life, ride comfort and fuel economy of all-weather tire offerings. Andrea Berryman, director of product management for Cooper Tire & Rubber Co.: This category is one that is relatively new

to being marketed in the U.S., so that alone is driving some excitement. Beyond that, the all-weather tire has some advanced winter characteristics that may help fill the gap for consumers who don’t want the expense of purchasing a separate winter tire but may live in the mid-to-northern regions of the U.S., where snow performance is needed. Curtis Brison, vice president of passenger and light truck tire sales at Hankook Tire America Corp.: The winter tire market in North America is very difficult to manage and predict. Consumers want a tire that provides all-season handling but also provides additional grip in snowy and slushy conditions. The addition of this all-weather tire (category) gives consumers a new choice to tackle variable winter conditions, while not sacrificing warm weather performance. From a customer perspective, the versatility of this tire due to its 3-Peak Mountain Snowflake certifica-

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w w w . M o d e r n T i r e D e a l e r. c o m Date: 07/16/20

Client: TTB

Account Director: Van Nguyen 03_MTD_Feature-3Questions.indd Color: 4C/Process21

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Job #: 3265

File Name: 3265-TTB-MTD-August-HP-iR

Editor:

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All-Weather Tires

tion allows them to have winter-capable inventory all year long, which can help them manage inventories, especially in the case of a light winter or in markets that see winter conditions but may be not enough to warrant a true winter tire. Brandon Stotsenburg, vice president of the automotive division at American Kenda Rubber Industrial Co. Ltd.: For those manufacturers that have developed strong design modeling and have advanced compounding, there are now options to provide better wear, along with meeting the 3-Peak Snowflake performance. Until recently, it has been hard to find balance to meet those criteria and still provide strong wet and dry performance year-round. Although a true winter tire with proper design will outperform an all-weather tire on ice and more severe winter conditions, this new segment provides an upgrade over a standard all-season tire during the winter season. The primary target customer for all-weather tires will be folks who are in geographies that have lighter snow and seasonal changes that need better performance during the winter. For consumers who want to maximize wear and are in regions that do not demand upgraded winter performance, they may want to stay with all-season touring or grand touring tires. For light truck, adding the 3-Peak Mountain Snowflake performance provides additional benefits for northern geographies. Tim Carter, technical communications director for product marketing at Michelin North America Inc.: The driving demand for an all-season tire with 3-Peak Mountain Snowflake is in the regional snow belt and where legislation requires the 3-Peak Mountain Snowflake symbol and consumers do not want to change their all-season tires to winter tires. Jay Lee, director of product planning at Nexen Tire America Inc.: Consumers are looking for tires that fit all needs of their lifestyle. They are less interested in changing tires as the seasons fluctuate. If a tire can perform in all-weather conditions, it will be more convenient for them. Switching out a dedicated set of snow tires before and after the season can cost upwards of $200. Steve Bourassa, director of products

22 03_MTD_Feature-3Questions.indd 22

The Quatrac Pro from Apollo Vredestein is a seventh generation all-weather tire and offers a lifespan of 40,000 miles.

for Nokian Tyres Inc.: Education is driving demand. Once drivers understand that all-season tires aren’t ideal for all four seasons in much of North America, we’ve seen they’re quite willing to step up to an all-weather tire. As a result of that education, which usually comes from dealers, we’ve seen demand for all-weather tires grow steadily over the past few years. The typical all-weather driver lives in an area with unpredictable winter weather and wants year-round peace of mind. In those areas of the country, a growing number of drivers are opting for a true four-season option rather than an all-season tire that isn’t equipped to withstand snow, ice or temperatures below 45 degrees. All-weather tires are also popular with snowbirds who regularly drive across the country during the winter months, as well as winter sports enthusiasts who often find themselves in unpredictable mountain weather. Certainly, there will always be markets that are best-served by a true winter tire. Much of Canada and the northernmost U.S. states get enough severe winter weather to necessitate a dedicated winter tire and

we’ll always recommend winter tires as the safest option for drivers in those areas. But if a driver refuses to carry two sets of tires, a premium all-weather tire is a much safer option than an all-season product, and we’re seeing some consumers in those traditional winter locations make that step up. Sam Choo, winter tire product planner at Sumitomo Rubber North America Inc. (SRNA/Falken): The central idea driving demand for the all-weather category is the desire for improved winter performance without compromising the convenience of an all-season tire. Our market research helped us pinpoint three main reasons why consumers in the U.S. and Canada would opt for all-weather tires: the desire for more safety and control in snowy conditions; the hype of the severe snow rating, whether driven by regulation, the retailer or word-of-mouth; and the convenience of not having to change tires and deal with tire storage. The typical customer is the all-season user who wants more winter traction but doesn’t want to deal with the inconvenience of swapping tires mid-year. In Canada, it’s about a 50/50 split between consumers who switch tires in winter and those who stick with the same tires all year long. When we asked both groups if they’d be open to the idea of an all-weather tire, the “non-switchers” were much more inclined to express interest. This is likely because Canadians are well-educated on the benefits of a strong winter tire. Those who switch their tires every winter presumably feel that sacrificing winter performance isn’t worth the added convenience. Conversely, folks in the U.S. who switch tires in winter seem to have a different perspective. Of those who switch their tires, around 75% would likely opt for all-weather tires. This sounds great until you realize that this group of potential customers makes up about 10% of the U.S. population. On the other hand, nearly 90% of Americans keep the same set of tires year-round, with more than half of this segment expressing interest in an all-weather tire. This group of consumers is intrigued by the possibility of improved winter performance and safety, without having to store an additional set of tires in their garage. Dealers should be MTD August 2020

8/5/20 6:56 AM

Technology from Cooper’s off-road tires played a part in the development of the Discoverer EnduraMax, made for small and mid-size SUVs and released earlier this year.

intrigued by a large consumer segment that would strongly consider giving this new category a shot. Cameron Parsons, product manager at Toyo Tire U.S.A. Corp.: Customers turn to all-weather tires for two main reasons: price and convenience. The formula of a 3-Peak Mountain Snowflake-rated tire that is usable year-round makes a great deal of sense for those who don’t need and don’t want to alternate between winter and summer. There are many regions that experience cold weather and only light snow and ice, making a dedicated winter tire purchase difficult to justify. That’s where all-weather tires fit right in. MTD: Geographically, where have you seen the strongest demand for all-weather tires? Have any of these geographies been a surprise? Bisht, Apollo Vredestein: Typically, demand for all-weather tires is highest in the northeast, in areas like Pennsylvania or Connecticut, but they also make a lot of sense in areas like the northwest. Colorado has been a great stand-out location, as well, with areas that require year-round w w w . M o d e r n T i r e D e a l e r. c o m

03_MTD_Feature-3Questions.indd 23

functionality. The areas that make less sense for all-weather coverage are locations where you don’t receive as much snow, like the southeast. Typically the additional mileage and wet performance benefits found in an all-season tire like the Vredestein Hypertrac outweigh the small risk of light snow that they’re not likely to see. Kelly, Bridgestone: Currently, the highest demand is found in the northern U.S. and parts of Canada, where winters are less severe but drivers are still required to equip their vehicles with tires that are 3-Peak Mountain Snowflake-certified. The states with the highest demand currently include Michigan, Minnesota, Wisconsin, New York, Colorado, Pennsylvania, Illinois, Ohio and Iowa. However, as the category grows, we anticipate an opportunity to expand in all regions with the balanced performance of the Firestone WeatherGrip in wet and snowy conditions, while still offering a competitive wear life. Brison, Hankook: We are seeing demand in markets that have winter conditions during the year but may not be a traditional winter tire market. That said, this is an incredibly versatile tire that can perform in all types of markets where conditions can suddenly turn into a snowy, slushy environment. This is a newer category of tire, so we are still monitoring the evolution of the all-weather marketplace. Stotsenburg, Kenda: The Kenda Klever A/T2 is just rolling out now, but our initial sales are very strong across all geographies. Kenda currently has an all-weather touring tire offered in Europe targeted to markets with consumers looking for this option. We are evaluating the performance trade-offs to determine future product development opportunities for North America. Carter, Michelin: Surprisingly, the strongest demand to date for the Michelin CrossClimate family of tires is not in Quebec, where 3-Peak Mountain Snowflake is legislated, but in Ontario. We suspect that many consumers in Quebec are still opting for dedicated winter tires, whereas in Ontario, even though winter is harsh, the CrossClimate works quite well. We also see regional demand in some portions of the U.S., where we also have legislation requiring a snow certification. We’ve had

exceptionally positive responses in the snow regions, as well as broad-base, positive response in dry and typically rainy parts of the U.S. It is important to note that an all-season-plus tire is not a substitute for a traditional winter tire. Lee, Nexen: The northeast of the U.S. is seeing the strongest demand for allweather tires. Bourossa, Nokian: Places like the Rocky Mountains, the Pacific Northwest and New England are growing markets for our all-weather products. We have dealers in the northeast who have long sworn by them. One dealer in Connecticut estimates that our all-weather tires make up more than half of his sales mix. Colorado and Utah make a lot of sense, because their largest cities’ proximity to the mountains means lots of people are venturing into altitudes where winter weather can strike any time of year. And we have a robust customer base in the Pacific Northwest that sells a lot of all-weather tires, given the area’s unpredictable weather and mountainous areas. Choo, SRNA/Falken: Based on preliminary market research, we see most all-weather demand coming from three different U.S. regions: the northeast, the snow belt and higher-elevation areas of the mountain states. There’s also some demand from Canada, though not as much as we originally anticipated. We believe this can be attributed to the fact that Canadians are much more likely to switch their tires mid-year, making the idea of a more convenient alternative far less compelling than it is to Americans. Parsons, Toyo: We’ve found our Celsius tires to sell best all along the northern United States. Its popularity is spreading farther south as consumers realize that a 3-Peak Mountain Snowflake all-weather tire is capable and convenient in more than just areas of high snowfall. MTD: Is this a category open to all tiers or will only premium brands compete in this space? What inhibits a tiremaker from competing in the all-weather category? Is having an existing strong winter tire product a prerequisite? Bisht, Apollo Vredestein: The category is

23 8/5/20 6:56 AM

All-Weather Tires

In July, Michelin launched the CrossClimate2, which is an all-weather tire, but the company says more importantly it’s a performance tire for wet and dry conditions, with the added capability of snow performance.

open to all contenders but the capabilities that this segment demands require exceptional balance across all parameters. As you gain capabilities in a tire, there are often trade-offs in other performance sectors. Having a strong winter product helps, but the development department still has to walk a fine line between compound, tread design and wear life to make a successful product. Vredestein has been a pioneer in the all-weather category for decades, with the widest all-weather portfolio in North America spanning over 130 sizes, with over 60% of the range being larger than 17 inches. Kelly, Bridgestone: Manufacturers are constantly trying to strike the right balance between ‘the three W’s:’ wet, winter and wear. The key to having a great all-weather tire is not only to achieve 3-Peak Mountain Snowflake levels of winter performance, but also to achieve expected all-season tire levels of wet performance and wear life. Berryman, Cooper: This category is open to all tiers, but I have not seen the lower tiers engage yet. There is additional cost and engineering expertise needed to achieve 3-Peak Mountain Snowflake. Companies that have strong winter products generally have the understanding it takes to develop an all-weather tire.

24 03_MTD_Feature-3Questions.indd 24

Brison, Hankook: I can’t speak for other manufacturers but I can tell you Hankook is one of the most technologically advanced tire companies in the industry and we invest heavily in research and development. We are offering some of the highest quality products on the market and giving the consumer the highest value possible. Our all-weather offering will be no different. Stotsenburg, Kenda: The technologies needed to provide the performance benefits are currently available to manufacturers that have the compounding and design tools necessary for the balanced performance previously described. A strong winter offering will demonstrate the design and compounding needed for more severe conditions. Additionally, for many lowprofile, premium CUVs, sports cars and sedans, these consumers may decide that their best option is to have summer and winter tires on two sets of wheels. For those who feel comfortable with an all-weather tire, they should verify the performance and compromises that these tires will offer them. The best professional to do this will be their independent tire dealer. Carter, Michelin: There are technologies that limit the ability of manufacturers to offer an all-weather tire that do not make compromises for wet and dry in order to

deliver snow. For now, a true all-season tire that is also certified 3-Peak Mountain Snowflake will probably be limited to Tier 1 due to the technologies required to overcome the compromises inherent in delivering a single tire that performs well in dry, wet and snow. Lee, Nexen: At this time, it is mostly Tier 1 and Tier 2 brands that compete in this space. Consumers are very sensitive to their safety when it comes to using and selecting winter tires. The all-season tire is not a replacement for those who are very concerned with winter performance. That consumer will still purchase dedicated winter tires. Bourassa, Nokian: We believe that premium investment and legacy of winter innovation set our all-weather tires apart. Many tire manufacturers can make a tire that passes the requirements necessary to earn the 3-Peak Mountain Snowflake emblem. It’s much harder to make an allweather tire that balances strong summer and winter performance while offering optimal tread life. Only tiremakers that focus on providing the right product for the all-weather market through testing and experience will be successful. Choo, SRNA/Falken: Due to the current size of the market, it may be tough for some brands to justify developing an all-weather

Last year, Kenda unveiled the Klever A/ T2 KR628 in 41 sizes, and the company says it is evaluating additional segment offerings in the all-weather category.

MTD August 2020

8/7/20 10:04 AM

Associate Dealer Program maxxisaccelerate.com

8 9010 7 6 5 4 23 0000 1 ler ed Dea iz Author Maxxis

EARN UP TO $9 ON LIGHT TRUCK EARN UP TO $8 ON PASSENGER AND ST TRAILER

HP-M3

25_MAXXIS TIRES_0820.indd 25

HT-770

RAZR-AT

START

EARNI

N G YO

RAZR-MT

ARD UR REW

Y S TO D A

M8008

8/5/20 12:01 PM

All-Weather Tires

The Nokian WR G4 debuted in 2018 and its counterpart for SUV fitments entered the market in 2019.

product with no guarantee of substantial return on investment. Consumers have yet to adopt the idea of an all-weather tire, so it will take some time before it’s considered a worthy option. With that being said, as the segment matures, we anticipate multiple price levels will surely follow. If the all-season segment is any indication, we’ll likely see the formation of multiple price tiers based on consumer preferences. Currently, the market for this segment is fairly small, but as industry support for all-weather grows, we believe consumer interest will grow with it. Parsons, Toyo: The all-weather category is certainly a tougher one to break into with a competitive offering. The ability to meet winter demands with a 3-Peak Mountain Snowflake rating, while delivering dry performance and all-around comfort with low noise, is a difficult balance to achieve. Past experience with different product categories, particularly winter, definitely helps in the development of an all-weather tire.

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MTD: What does the growth of allweather offerings mean for the future of all-season tires? Bisht, Apollo Vredestein: Demand for all-season tires will remain as different regions favor different tire attributes. Those in the south will favor the attributes of an all-season tire like the (Vredestein) Hypertrac, that provide a longer wear life and even better wet performance, over the softer compound and snow capabilities that an all-weather tire offers. Kelly, Bridgestone: As the all-weather category continues to grow and advance, we expect that some versions of winter and all-season tires will be replaced with all-weather options. However, we do not anticipate the all-weather category completely replacing all-season and/or winter tires. In the current market, dealers will need to determine which tires to carry based on their region and climate. In regions with light to no winter weather, dealers will likely need to carry all-weather and all-season tire offerings. In regions that get frequent winter weather or require

3-Peak Mountain Snowflake-certified tires, dealers will need to carry winter and all-weather tires. Berryman, Cooper: Because winter tires are obviously a seasonal product and no one can predict the winter weather forecast from year to year, winter tire sales are difficult to predict. Also, inventory leftovers from prior year can lead to significant swings in winter tire shipments. A tire that performs adequately in winter and the rest of the seasons creates inventory turns that are much better, and consumers don’t have to buy two sets of tires. This is a space where all-weather tires can excel. With that said, winter tires are the best for winter conditions. They will outperform all-weather tires in snow and ice. All-weather will be better than all-season in winter conditions, but to get that winter performance, all-weather tires may have other areas that don’t perform, as well. All-season tires will not go extinct. They can offer longer miles, better wet performance and lower rolling resistance that make them an attractive choice for many consumers. MTD August 2020

8/7/20 10:04 AM

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8/4/20 11:28 AM

All-Weather Tires

Toyo offers the Celsius and Celsius SUV, with a new product, the Celsius Cargo, tire. coming in August.

Brison, Hankook: We believe there is room in the market for both categories. All-season tires remain the workhorse tire in the market, but as tire technology advances, we can address driver needs that we couldn’t have addressed even a few years ago. The entry of the all-weather category is the confluence of improved technology meeting the needs of our customers and consumers in winter markets. It is an exciting opportunity when you can bring offerings like this to market that can improve driver safety and performance. Stotsenburg, Kenda: Good all-season tires can optimize wear, dry and wet performance, as well as ride and noise. There will be some compromises when the tire also offers 3-Peak Mountain Snowflake certification. Some folks will not want to make those compromises and will prefer the benefits of a great touring, grand touring or all-season ultra-high performance tires. There will often be a price premium to offer properly verified, all-weather benefits. Consumers in more severe winter weather markets will likely want to have an optimized winter

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As all-weather technologies improve to lessen the compromises, this segment will continue to grow. As the primary, visible trade-off will be wear, with lower mileage warranties, many North American consumers may choose the higher warranties and/ or lower prices offered by all-season tires. Carter, Michelin: We believe the growth of all-weather offerings may actually force all-season tires to move closer to our categorization of “all-season plus,” an advancement in the all-season category by pushing the existing category to the next level. Nonetheless, we have no doubt that the all-season category without 3-Peak Mountain Snowflake (certification) will remain strong. The educated and discerning consumer in snow regions and in regions legislating 3-Peak Mountain Snowflake in winter months will request snow certification. When we asked consumers what they thought about the need for 3-Peak Mountain Snowflake, most consumers didn’t recognize the term or know the definition of a snow certification. However, when asked if their tires should have a snow certification, over

three quarters of the consumers in our study said “yes.” So, we believe the top-tier tires for this consumer base will offer the next level of all-season tires with a 3-Peak Mountain Snowflake certification. Lee, Nexen: All-season tires will not go extinct. They still will have better handling and performance characteristics than all-weather tires do. Most consumers want longevity in their tires, which means a harder rubber compound. This is not conducive to winter performance as rubber needs to remain softer, especially in very cold temperatures. Bourassa, Nokian: We believe there will always be a place for all-season tires. In areas like the southeast and southwest, winter conditions are rare enough that all-weather tires are typically unnecessary. That means consumers in those places tend to double down on all-season properties that make sense for their roads: tires with high speed ratings, rugged off-road capability, and/or strong wet-weather properties. Drivers who opt for winter tires during cold-weather months will also continue to need strong all-season options during summer. As long as the winter tire market is thriving, there will always be a need for all-season tires to complement them. Choo, SRNA/Falken: It’s very possible that all-weather could essentially replace all-season in the future, especially in Canada and northern parts of the U.S,, but it may be some time before that happens. Because North Americans typically prioritize high mileage warranties, it’s very difficult for tire manufacturers to successfully develop a worthy tire that also meets the industry’s severe snow requirements. Until we see radical breakthroughs in tread pattern and compound technologies, the all-season (tire) is likely here to stay. Parsons, Toyo: While the all-weather market will continue to grow stronger, the all-season category will always have a stronghold in the tire market. Consumers just need to understand that even though they sound similar, allweather and all-season are very distinct categories. ■ MTD August 2020

8/7/20 10:04 AM

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3 Questions With Tire Source

“We form that personal relationship with the customer,” says Tom (right, with TJ.) “That’s our theme. We want to be partners with our customers. They want that extra care. Box stores don’t have that touch.”

How to battle big box stores, maintain margins and survive a pandemic THREE QUESTIONS WITH TOM AND TJ WHITE FROM TIRE SOURCE By

Mike Manges

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ith more than 30 years in the tire industry – including 28 operating Tire Source, an Akron, Ohio, area-based dealership with six locations across northeastern Ohio – Tom White has lived through a number of significant market developments, from the rise of big box retailers to the launch of tire manufacturer-owned e-commerce platforms and most recently, the economic shock of COVID-19. MTD August 2020 8/6/20 3:54 PM

MTD recently talked with Tom and his son, TJ White, who joined the company in 2010 and currently manages its Montrose, Ohio, store, to discuss how Tire Source has successfully competed against mass merchandisers. They also detailed how Tire Source has held its ground in a world where tires are available through more channels than perhaps ever before. And they shared strategies that have enabled the dealership to survive – and even thrive – during the COVID-19 crisis. MTD: Almost all of your stores operate within close range of big box stores and mass merchandisers that sell tires. Are these operations the threat that they once were and how have you managed to compete successfully against them? Tom: Our customers are looking for a place where they can bring their cars and where they feel there are very qualified people changing their tires. Our people are very qualified at what they do. We keep up with state-of-the-art equipment. At the counter, our sales folks, our managers, our service managers – I think they have a better grasp of selling. They’re tire experts. They understand the product. And we form that personal relationship with the customer. That’s our theme. We want to be partners with our customers. They want that extra care. Box stores don’t have that touch. They often don’t have the right tools. Sometimes, it becomes a hindrance for customers to go to a big box retailer. TJ: From a store standpoint, what we notice the most when competing against the big box stores is price. People go there to get a price and then bring it to us and expect us to match it. In most cases, we get as close as we possibly can. But we also explain that we’re a local business and we’re going to do the best we can to serve them. I think if customers get into our store and realize we can offer them what they’re not necessarily going to find at a big box store, that makes their choice easier. We also have embraced online tire sales a little bit more, which helps. Customers can see our prices and know that we’re going to be very competitive. w w w . M o d e r n T i r e D e a l e r. c o m

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Tom: One of the Walmarts around us, at the beginning of COVID-19, shut down the automotive service side of their operation. I think that caused them more angst than anything. And it really helped our store. It’s easy to make a customer unhappy in our industry. I don’t think big box stores have the same ‘care factor’ that we do. TJ: We’ve seen that Walmart is going to pull out of auto service in Canada and it wouldn’t surprise me to see that in the U.S. within the next five to 10 years, as well. Tom: If a shopper from a big box store can come into this environment and see the Tire Source way, they will become a Tire Source customer. MTD: How have you successfully maintained margins in a world where tires are available through more sales channels than ever before, including online? Tom: It’s like anything else. People are conscious of price, but they also want great service and value. We were one of the first dealers out there to embrace Goodyear’s ecommerce program. (Note: Goodyear Tire & Rubber Co. introduced its current e-commerce program in 2015.) It gives us a chance to earn a customer. What does it cost to win a new customer? A thousand dollars? We’re getting a customer for no out-of-pocket marketing. Once they come in and experience our environment, they become Tire Source customers. And we let them know about all the other services we offer. We normally don’t sell on price. We don’t want to be the highest. We don’t want to be the lowest. We make up for it with our service, our updated equipment and by having the best people in the industry. TJ: Once a customer buys online, we want to get them in the store. As soon as they come in the store, it feels like a win for us. We know we’re going to provide excellent service for them and continue the relationship. Whether or not they decide to buy online the next time or they decide to give us that opportunity, we do our best to earn that customer’s business. On the margin side, we’re very adamant about making sure we offer in-house road hazard protection to every customer. It’s one of those things we try to add onto

“We were probably at our highest inventory level at the beginning of COVID-19,” says Tom. “It was kind of counter-intuitive that we were going to add inventory and drop cash down. But we kept a clean line of communication with our vendors.”

“Once a customer looks or buys online, we want to get them in the store,” says TJ. “As soon as they come in the store, it feels like a win for us.”

31 8/5/20 6:57 AM

3 Questions With Tire Source

From first shovel to ribbon-cutting

MTD tracked birth of Tire Source’s fourth store

“ Build it and they will come.” Those words, which were featured on the cover of the November 2002 issue of MTD (pictured), referred to the completion of Tire Source’s The November fourth store. 2002 issue of An article in MTD documentthat edition, writ- ed the developten by then-MTD ment of a Tire Source store. Editor Bob Ulrich, chronicled the development of the location, from the moment owners Tom White and Drew Dawson planted “opening soon” signs on the property — at the time, a vacant lot — to the store’s grand opening. The article featured photos depicting each stage of the store’s development, plus commentary from both White and Dawson, which provide insight into their thought process at the time: • “One of the hold-ups, time-wise, was negotiating the lease.” • “Be as hands-on as the general contractor will let you. A couple of times we saw things we didn’t like and brought it to the attention of the general contractor.” • “We negotiated with the developer to minimize our additional expenses.” • “Tom and I like classic brick. It’s classy and timeless.” “So many stores go up looking like Blockbuster video stores,” Dawson commented at the time. (Video rental chain Blockbuster went out of business in September 2010. At its peak in 2004, Blockbuster had more than 9,000 stores.) “Our Montrose location is, by far, our biggest store,” Tom recently told MTD. “We built it and then other companies built around it. It’s in a good spot and we’re very happy with its location.”

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When COVID-19 hit, “we put stickers on the floor with the Tire Source logo to keep people six feet apart,” says Tom.

every package. And we’re able to help our margin in that sense. Tom: The term I use is CFL: customers for life. That’s what we are looking for. MTD: What was the most effective strategy you employed to survive the COVID-19 crisis and how did that make you a better, more efficient business? Tom: I think the biggest thing we did was educate our people right away and let them know what was going on. I went to every store with our general manager, Pat Stuhldreher, and talked to everybody. At first, we thought we’d have to furlough people. I’m proud to say that we didn’t have to furlough one person. We were able to secure a Paycheck Protection Plan loan and that helped us immensely. We did all the normal things, too. We did a deep clean of all the stores. We put stickers on the floor with the Tire Source logo to keep people six feet apart. We’ve been extra-cautious with our credit card machines. We’re using steering wheel and gear shift covers. I think we have a pretty good grasp of safety precautions. TJ: We also gave customers the ability to drop off their keys and leave their cars in the parking lot. A customer then can text any of our stores and the message will pop up on any computer in our stores, so almost every person in the shop can see that and respond to the customer. We can send customers information. They

can ask questions. We send them a link to pay through their phone. They can pay with their credit card. They also can use Android or Apple Pay. We’ve gotten a lot of great feedback. And we plan on keeping almost everything that we’ve implemented during COVID-19. Tom: We also made sure we had inventory on hand. We were probably at our highest inventory level at the beginning of COVID-19. It was kind of counter-intuitive that we were going to add inventory and drop cash down. But we kept a clean line of communication with our vendors. We didn’t have to dip into our cash reserves. We also have a line of credit, but we didn’t tap it right away. We dumped it into our bank account. We have great communication with our bank. Smaller dealers don’t always think about that sometimes. But let’s be honest: cash is king. I spend more of my time managing cash flow than anything else that I do. Tire Source’s business has recovered robustly since the weeks immediately following the COVID-19 outbreak, according to Tom. “We’re just short of being 100%” of where the dealership was at the same time in 2019, he says. “We’re positioned and partnered right. We keep our showrooms neat and clean. Because of the virus, people are going to be looking at that. Barring a second wave of COVID-19, I think our better days are ahead.” ■ MTD August 2020

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July 1 - August 31, 2020

Consumer Promotion 8/6/20 1:59 PM

Secondary Financing

Pandemic paves the way for secondary financing

Joe Caltabiano, left, of Bruneel Point S, talks to a customer about his vehicle repair. Based in Boise, Idaho, the company has 11 locations, which, as a group, are 90% focused on retail. Tires make up 40% of total sales. Last year the tire dealership added secondary financing from West Creek.

CONSUMER NEEDS ARE OBVIOUS IN TOUGH ECONOMY By

Joy Kopcha

housands of tire dealers across North America have turned to no-credit finance providers as a way to reach more customers and capture additional sales at the front counter. And now, with the economy in a constant state of uncertainty thanks to COVID-19, dealers say this service is even more critical. David Warwick, director of operations at Bruneel Point S Auto & Tire, which is based in Boise, Idaho, says the dealership’s 11 stores began offering secondary financing from West Creek Financial Inc. in June of 2019. The service is already making a difference in the company’s sales. “There is an entire customer base out there that wants and needs the very same things as every other customer, but may not have the ability to purchase the necessary services,” says Warwick. “It’s become

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an important tool for us in providing an alternative where there may not be another one and giving everyone the same opportunity to make their vehicle safe and purchase necessary products and services.” After one year, Warwick estimates that sales enabled through West Creek’s secondary financing program account for 5% of the dealership’s overall revenue. On average, those invoices total $900 to $1,000, he says. “In the past, this type of interaction would turn into a ‘I need to save money’ response. With West Creek, we are able to assist our customers with immediate purchases so they feel good about the safety of their vehicles.”

HOW THE PANDEMIC HAS AFFECTED FINANCING

Modern Tire Dealer talked with representatives from six companies that offer

secondary financing and leasing in the tire and automotive world, as well as Synchrony LLC, a primary, traditional lender. All of them addressed how COVID-19 has affected the market for their product. Here’s their take on the current environment. Matthew Dishman, senior director of national sales for American First Finance Inc. (AFF): “Due to COVID-19 and state shutdowns, many primary lenders tightened their lending practices, thus increasing the opportunity for secondary financing.” Clint Cowley, chief revenue officer for Kornerstone Credit LLC: “With COVID19, the importance of offering consumers secondary and tertiary financing options is stronger than ever. Due to uncertainty in the job market and the current economic climate, several first-tier providers have modified or increased their underwriting requirements. This has opened the MTD August 2020 8/6/20 3:56 PM

INCREASING YOUR SALES IS JUST THE

ICING

ON THE

CAKE

Simple Lease-to-Own Financing With Some Sweet Perks snapfinance.com 855-206-0439 35_SNAP FINANCE_0820.indd 35

7/28/20 1:10 PM

Secondary Financing

Snap adds up to 60% of sales Felix Almestica III is the director of operations for the 13 stores and two wholesale locations that make up Best Tire Center LLC in Fort Worth, Texas. (Seven locations in Texas operate under the Tires to You banner, while eight locations do business as Best Tire Center in Washington.) The stores offer tires, wheels, alignments and accessories, but no automotive service. When the first Tires to You stores opened in 2015, “we were struggling to get people in the door,” says Almestica. Adding Snap Finance LLC became a lifeline for the dealership. Because financing provided by Snap is not based on a person’s credit score, Almestica says it was a good “middle ground” that made the conversation at the counter easier. Customers didn’t want to open a credit card, but liked the idea of having a line of credit that they could use, pay off and reuse later. “There were days (when) if we hadn’t had Snap, we wouldn’t have had sales at all.” Almestica said sales made through Snap Finance have grown to represent 60% of any of his store’s total income. On top of that, the stores have seen customers opt to buy extras that were recommended to them “because of Snap,” rather than cutting away at things to make the ticket fit into their budget. opportunity for secondary and tertiary finance partners to step in and offer services to a broader customer base. Financing has adapted and evolved to the current business environment and as services resume, there has been a greater demand for financing products. Having different options available can create a competitive advantage for any tire dealer or auto repair shop owner. Consumers are looking to stretch their savings further and simple payment programs are a great way to do so.” Steve Surman, vice president of marketing at Prog Leasing LLC, dba Progressive Leasing: “Foot traffic in retail

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stores is obviously down due to the closure of retail locations, quarantines, limits on the number of customers in a retail location at any given time and social distancing. However, this dynamic has been somewhat offset by greater online retail activity. Lease-to-own purchase options are ideally suited for critical purchases whenever cash or credit is tight. This is as true now as it was before the present pandemic.” Ryan Slobodian, chief of staff for Snap Finance LLC: “There has never been a more critical time to offer secondary financing. The speed of the economic upheaval, combined with forbearance and other payment relief programs, created challenges for primary financing lenders, causing them to pull back on lending. There are now customers that no longer have access to primary financing but still have purchasing needs. Secondary financing is the solution.” Matt Welton, senior vice president of sales and marketing for Tempoe LLC: “Fortunately for the tire industry, companies were considered an essential business and therefore were able to stay open during the initial phases of the shutdown across the country. Due to the high spike in unemployment rates and the concern from institutional lenders about high delinquencies, many of the payment providers in the space, unfortunately, had to either pull back on approvals with lower approval amounts or lower approval rates. Others temporarily suspended lending and leasing activities for the first month or two of the pandemic, while others shut down permanently. These pullbacks put a strain on some tire dealers as they lost sales tools to help their customers in their greatest time of need, especially for those that may have recently lost their jobs.” Josh Borgstrom, vice president of sales at West Creek: “Safe transportation is always a necessity for those who are still on the road. In this turbulent market, consumers need all the support and payment options available. Offering secondary financing gives customers the flexibility they need to keep their vehicles running safely. If you’re not offering secondary financing, you’re pushing traffic to a competitor who does.”

THE BIGGEST PERK OF FINANCING

MTD also posed additional questions to representatives from secondary financing providers: MTD: What’s the single biggest perk of offering secondary financing? Dishman, AFF: “Saving more sales and adding repeat customers are the biggest perks of offering secondary financing.” Cowley, Kornerstone: “The biggest perk is the ability to offer customers a way to stretch out their savings. For many, this is an option that wouldn’t be available otherwise.” Surman, Progressive: “Customer satisfaction. Offering lease-to-own purchase options to customers who might not qualify for traditional credit helps these customers acquire the tires they need to keep themselves and their families safe, whenever the need arises, without having to compromise and settle for unsafe or underperforming tires. The result is satisfied customers and more sales.” Slobodian, Snap: “While there are many reasons to offer secondary financing, the biggest perk is offering a solution to the 40% of consumers who may not currently see your business as an option for their tire and automotive service needs. When tire dealers offer secondary financing, they’re able to provide financing solutions to an entirely new customer segment.” Welton, Tempoe: “With the current economic crisis impacting just about everyone, customers are being stretched thin on their disposable income. Many do not have the cash nor the credit easily available to acquire essential needs, such as tires or wheels. Offering an alternate payment solution for the consumer at the point-of-sale is fast and easy, allowing tire dealers to service a higher number of customers without having to turn them away, while not having a negative impact on their margins.” Borgstrom, West Creek: “Ease of use, without a doubt. Most tire dealers that we work with have never used a third-party financing solution. These dealers have no problem with our intuitive and simple interface. When you have customers in the shop and a list of things that need to get done, your financing partner should be MTD August 2020 8/6/20 11:14 AM

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7/28/20 1:09 PM

Secondary Financing

the least of your worries. Consumers might fix additional items, if offered financing, versus coming back at a later time. New customers who are shopping for finance options will bypass dealers who don’t offer and talk about their financing options.”

WHY YOU SHOULD RECONSIDER

MTD: For those dealers who have so far resisted offering secondary financing, given the current economic climate, what’s the most important thing for them to reconsider now? Dishman, AFF: “More than 60% of adults have less than $400 of disposable income. “ Cowley, Kornerstone: “Consider that many of your customers and potential customers who may have been able to pay upfront or qualify for first-tier financing before may not have those options anymore and won’t be able to purchase what they need without secondary or tertiary programs. “When you offer new finance programs,

it is a win-win situation. The customers can take home what they need, and you improve your bottom line.” Surman, Progressive: “Retailers who don’t offer a lease purchase option may find themselves unable to serve the nearly 35% of Americans with subprime credit.” Slobodian, Snap: “There are many customers who no longer qualify for traditional credit. Offering secondary financing allows businesses to reach these people. Owners and managers should consider the history and stability of the financing company they choose to partner with and should consider the company’s history, funding sources and customer service scores, such as net promoter scores.” Welton, Tempoe: “The key thing to keep in mind is that no one truly knows what another’s situation is. We cannot judge and make decisions for other people based upon our own wallets. Everyone should be given a chance to make their own decisions as to whether they want

‘Financing has become more relevant’ Perhaps the largest of any of the finance providers is Synchrony LLC, whose Synchrony Car Care program is available at more than 35,000 automotive parts and service locations nationwide, including many tire dealerships. Synchrony also offers traditional financing: a retail credit card, with approval based on a customer’s credit worthiness. Still, Steve Roe, senior vice president and leader of payment solutions for Synchrony, says demand for credit options is on the rise due to the COVID-19 pandemic. “Financing in the automotive aftermarket industry has been prevalent for 30-plus years, but demand has been growing during this pandemic,” says Roe, noting Synchrony has added more customers to its program. “Shops should proactively offer financing to stay competitive.” Roe says that Synchrony’s consumer surveys have shown that 76% of Synchrony cardholders always seek promotional financing options when making a major purchase. That has remained true during the pandemic. Synchrony says a tire dealer who proactively uses consumer financing typically will have average repair orders that are two-or-three times higher than if they didn’t have financing. Since the arrival of COVID-19 and its economic impact, Roe says automotive businesses are seeing customers use a combination of tax returns, stimulus checks and increased unemployment benefits, along with the deferred interest offered by Synchrony Car Care. “Financing has become more relevant,” says Roe. “Shops are offering consumer financing more often and making sure people know they have a variety of different payment options.” And here’s one final plug from Roe as to why tire dealers should offer financing. “Synchrony Car Care is not just a consumer financing program. It creates strong customer loyalty with six out of every 10 customers who will use the card again in the same shop within the next 12 months.”

38 04_MTD_Financing-Suspension.indd 38

or need a product or not. If this current economic environment has shown us anything, it’s that there are no guarantees about tomorrow, and we should all do what we can to plan for future success. Borgstrom, West Creek: “You never know which of your customers need financing until you ask. This has always been the case, but even more so in today’s economic climate. Dealers often have a certain picture of what the secondary financing customer looks like or what their background is. “Now more than ever, it’s important to remember that any one of the customers walking through your door may need secondary financing, and it’s important to start the conversation. “We encourage all of our dealers to get the word out that they offer secondary financing,” he says. “The customer won’t know it’s an option unless you tell them. Not offering financing is basically saying ‘no’ to your customer who wants to shop with you.

Tempoe helps consumers make safe decisions Sandra Munoz is operations director for Burleson, Texas-based Alwahban Texas Tire LLC, which does business as Texas Tire. She says offering secondary financing through Tempoe LLC “is one of the reasons we have been able to grow at such a fast pace. “Due to COVID-19’s financial impact, a lot of people are not able to pay up front to get a new set of tires that can run up to $1,000, especially now that a lot of us are relying on our vehicles to get around. Tempoe has given them the ability to get their tires replaced and be safe on the road without having to pay the full price up front. “Secondary financing has helped our sales by over 50% by giving our stores great approval rates and amounts that give our customers the ability to make purchases they otherwise wouldn’t be able to make,” notes Munoz.

MTD August 2020 8/6/20 11:15 AM

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7/28/20 1:09 PM

Suspension

Curing ride control complaints WE EXAMINE THREE COMMON CUSTOMER ISSUES By

Mike Mavrigian

ide control complaints are probably one of the most common types of concerns expressed by your customers. And quite often, the customer’s description can be vague or misleading. Make sure you gather as much information from customers as possible prior to your techs performing an inspection. For example, do customers only hear a “funny” noise when driving on bumpy roads—or on smooth roads, as well? If you

40 04_MTD_Financing-Suspension.indd 40

suspect that the vehicle is heavily loaded with cargo at times, ask if the “wandering” they experience only occurs when that condition is present. The customer’s description of an issue should be considered merely as a starting point. It’s up to your techs to inspect and road test to determine the actual cause of the complaint. Rule number-one when discussing this type of customer concern is to never diagnose anything at the counter. Inform

the customer that your technicians will perform a thorough inspection to address the specific complaint. Make it clear that once the problem has been properly diagnosed, the customer will be informed about the cause of the problem and that parts and labor that will be required to fix the issue. Resist the temptation of jumping to a conclusion before the vehicle can be inspected. Let’s look at three of the most common ride control complaints: MTD August 2020 8/6/20 3:55 PM

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Suspension

ISSUE #1: VIBRATIONS AND SHAKES

If a customer complains about vibrations during braking, the most likely cause is a warped brake rotor, which forces the pads to bounce on or away from the uneven rotor surface. Brake rotor warpage can result from various causes, including brake rotor overheating, lateral or radial runout, sticking caliper pistons and even improper wheel fastener torquing. Many passenger cars today feature thinhat rotors that are easily distorted if the wheel fasteners are unevenly or excessively tightened. This is another reminder that a calibrated torque wrench should always be used, especially when installing alloy wheels. Techs should avoid the use of impact wrenches during wheel installations and always tighten to factory specifications, following the correct tightening sequence. Make sure your techs check brake rotors for lateral runout. Lateral runout causes the rotor to “wobble” as it rotates, kicking the brake pads in and out during braking, which results in pedal bounce. When checking lateral runout, the rotor must be secured to the hub with all wheel fasteners. And fasteners must be torqued to specification. Your techs should mount a dial indicator base to a solid and non-moving surface and lace the indicator plunger perpendicular to the rotor disc surface.

After verifying and correcting tire inflation and tire overall diameter size, measuring ride height can lead you to fatigued or broken springs.

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Always check initial tire inflation at all wheel locations as one of the first steps. Improper inflation can easily result in not only accelerated outer tire shoulder wear, but also may be the culprit for directional pull and/or a wandering complaint.

They should reload the plunger by and the hub. If they start to see an improveabout 0.050-inch and zero the indicator ment, they should reposition the rotor to gauge, slowly rotate the rotor a full 360 the next clock position and re-check. It degrees and observe the movement of the may be possible to find that “sweet spot” gauge needle. Readings where hub runout and should be compared to rotor runout cancel factory specifications. each other out. A warped brake rotor is Generally speaking, If, during initial the most likely cause of lateral runout exceedinspection, techs ing 0.0025-inch is observe a discolored vibrations during braking. rotor, this is a sign of too much and may This may be caused by require rotor replacean overheat condioverheating, sticking caliment. However, before tion, which could replacing an otherwise be caused by several per pistons and improper acceptable rotor, techs factors — the most wheel fastener torquing. should mark the orilikely of which is poor entation of the rotor braking habits by the to the hub. driver. The driver may Next, your techs have a habit of abusing should remove the rotor and reposition the brakes by nailing the brake pedal at it to the hub in the next clock position and the last moment during stops instead of re-check for runout. They may find a stackapplying moderate pressure prior to final up of runout tolerance between the rotor stopping. Or, the brake pads may be the MTD August 2020

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Suspension

Worn or improperly installed upper strut bearing assemblies can lead to unusual grinding or rattling noises, in addition to compromising steering stability.

wrong choice for the application, requiring excessive brake pedal pressure. Upgrading the pads to a more robust pad material may solve the issue. Of course, if the rotor is glazed and/or heat checked, the rotor(s) must be replaced as well. If the application involves an emergency vehicle, such as an ambulance or police vehicle, only heavy-duty, high performance pads that are designed for fade-free, panic stopping should always be installed. A “shake” complaint by the customer is somewhat ambiguous. Potential wheel imbalance is an obvious starting point. A road test will help to confirm this. If your techs suspect a wheel imbalance and check the wheels on a balancing machine and find no issues, they should consider the possibility of a road force variation issue, where the construction of the tire features isolated hard spots. This may be verified

and remedied by using a balancing machine that features a road force simulator. Other potential factors might include a driveshaft imbalance. Techs should inspect the driveshaft for a missing balance weight and check for worn front and rear universal joints. Also, they should inspect for a bent or dented driveshaft. If the vehicle features rear-drive and a solid axle housing, they should check the pinion angle. If the axle assembly pinion angle has been moving vertically, this changes the driveshaft angle, which could explain a shaking or vibrating issue. If the rear suspension features leaf springs, techs should inspect the spring mounts and spring pad U-bolts for wear and looseness. If by chance the vehicle is equipped with a manual transmission, ask the customer if a clutch job was recently performed and if the “shake” issue began to occur after the

Worn control arm bushings can result in a number of issues, including erratically changing front wheel angles, a wandering complaint, undercar noises and accelerated tire wear.

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MTD August 2020

8/5/20 7:00 AM

clutch service. It is possible that the wrong clutch assembly was installed or that the flywheel was replaced. If a zero-balanced flywheel was installed to an externally balanced crankshaft, an engine and driveline vibration is more than likely. This may seem like a stretch, but techs also should check for any body/chassis issues involving a component that is affected by oncoming air at highway speed, such as a front lower air diverter or rear airfoil/ spoiler. If that part is loose or damaged, this can cause the vehicle to experience a “flutter” as air speed increases.

One of the inspections that may be performed when diagnosing a brake pulsation, shimmy or directional control issue involves checking for lateral runout. When checking a rotor for lateral runout, set up a dial indicator and slowly rotate the rotor a full 360 degrees, noting changes in runout.

ISSUE #2: AIR SUSPENSION PROBLEMS

On vehicles equipped with air suspensions, where air bladders aid in controlling both ride quality and ride height, if the system develops an air leak, the compressor begins to work harder, especially if the system’s air dryer is contaminated with moisture.

Whenever faced with an air leak in the system, your techs should always change the air dryer. This will prolong the life of the compressor and the air spring solenoids. Common problems with an air suspension include: • Air leaks, which cause the compressor to run more or even constantly, which results in accelerated wear. Air leaks can be traced either to the air bag/ bladder, the most common situation, or leaks in air lines and/or line fittings. • Faulty air compressor. Compressor damage is most likely caused by an air leak that forces the compressor to over-work. In addition to noting that the compressor seems to run constantly, techs should listen for telltale noises, such as clicking, whining or grinding. • Moisture in the air system. The system features an air dryer to collect moisture and prevent compressor damage. If excess moisture enters the compressor,

TRAVELSTAR TIRES

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Suspension

Worn lower ball joints cause clunking noises, vibrations felt through the steering wheel and wandering left and right.

rot and other suspension components, such as bushings, eventually break down.

ISSUE #3: NOISES

Loose lower strut mount fasteners can also contribute to a wandering complaint and can affect uneven tire wear. Whenever replacing struts, even if the vehicle design does not theoretically permit camber adjustment, any tolerance space between the bolts and holes can result in improper camber angles. Always perform a front wheel alignment when struts are replaced.

this can result in internal corrosion. The air dryer should be changed anytime the air suspension system is serviced. If an air suspension-equipped vehicle suddenly illuminates the ABS/stability traction warning light, techs should check the connection of the ABS sensor that is located near the top of the shock mount. It may have been accidentally disconnected

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or not seated fully. Air struts heavily rely on the air bladder to absorb jolts and cushion the ride. All shocks and struts deteriorate as they cycle millions of times, compressing and rebounding over every bump, crack and road imperfection. As vehicles and suspensions age, the viscosity of the shock’s oil changes, sensors can wear or suffer damage, rubber air springs dry

A “noise” complaint has the potential for covering quite a lot of ground. Try to obtain more detailed information from the customer. What type of noise do they hear? Clicking? Groaning? Grinding? Popping? Whirring? Whistling? When do you hear the noise? While starting the engine? While cruising? During braking and turning? When just braking? Worn front wheel bearings will typically produce a grinding or clicking sound. Worn or damaged upper strut bearings will typically produce grinding, squeaking or popping noises best heard during slow turns. Worn or dry CV joints will cause a clicking noise, usually experienced during a slow turn into a driveway or parking spot. Worn shock absorbers may produce a squeaking sound when the driver enters the vehicle or during operation over uneven road surfaces. A whirring, groaning or squealing noise may be heard due to a dry or worn power steering pump, or engine belt idler pulley. Squealing or chirping noises heard during engine startup, idling or upon initial acceleration may be indicative of loose, out of alignment or worn engine drive belts. Loose, damaged or badly rusted exhaust system components can cause rattling or banging noises. This includes pipes, hangers, heat shields, etc. MTD August 2020

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A yellow dot on a tire indicates the tire’s point of least weight. When mounting, align the yellow dot with the valve stem, which should reduce /minimize a balance issue, finalizing with a weight balancing operation.

Some front-wheel-drive vehicle rear suspensions may feature left and right lateral links that attach to a centermounted Watts link. This serves to reduce body side-to-side movement in relation to the chassis/tire road contact. If the center bushing of a Watts link wears out, this can create a noticeable banging/thumping noise that can easily be mistaken for a failed rear strut mount.

If the vehicle features front-wheel drive and the rear suspension features a Watts link (also called a bell crank), it’s not uncommon for a worn Watts link center bushing to be worn out, which will result in a banging noise as the vehicle is driven over bumps or uneven road surfaces. This is often misdiagnosed as involving loose or worn-out rear shocks/ w w w . M o d e r n T i r e D e a l e r. c o m

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struts. A worn-out Watts link won’t really cause any major drivability issues, but the resulting banging noise can be quite nerve-wracking, making the vehicle owner concerned about a major problem. Naturally, a loud booming or unusually loud exhaust note is likely due to a leak in the exhaust system. A ticking or clacking noise during engine startup and during warm-up may be caused by piston skirt clatter until the pistons expand at normal operating temperature. A dreaded deep knocking noise during engine operation is a sign of worn/ damaged connecting rod bearings. A clattering noise during engine startup and idle that seems to be coming from the top of the engine is indicative of loose rocker arms, which, depending on engine design, may involve insufficient oil delivery to the top end.

OTHER ISSUES

Is the customer complaining about his or her vehicle “wandering” or pulling in one direction? Here are some quick points to consider: • Severely worn shock absorbers prevent controlled vertical wheel travel, reducing correct tire-to-road surface contact pressure, which can result in a “floating” sensation at highway speed. In combination with speed-related

vehicle air resistance, this can give the driver a feeling of a light, “wandering” condition. • A directional pull while driving can involve any of a number of issues. Techs should begin by checking tire size, verifying that both tires on the same axle are the same size. If a previous tire replacement resulted in only one tire being replaced of a different diameter, the smaller diameter tire will cause the vehicle to pull in the direction of the errant side. • And if the vehicle is equipped with a trailer hitch, ask the customer if the wandering issue only takes place when towing. If so, the wander may be caused by too much tongue weight which changes the weight distribution of the vehicle, placing too much weight at the rear axle and reducing weight at the front axle. This transfer of weight balance lightens the front end, reducing steering axle tire contact patches to the road surface, which forces the driver to constantly correct for straight line direction. In addition, the trailer may be unevenly loaded, with the majority of weight toward the rear. This can result in the “tail-wagging-thedog” syndrome. In a severe condition, this can result in a very dangerous condition at freeway speeds.

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Commercial Tire Dealer™

‘A MORE NORMAL STATE’ CONTINENTAL EXEC DISCUSSES CONSTRUCTION TIRE DEMAND, NEW GENERAL OTR TIRE LINE By

Mike Manges

ontinental Tire the Americas LLC is ramping up its investment in small OTR and construction tires. The company unveiled the first offering in its new, all-bias General brand OTR tire line earlier this year during the Tire Industry Association’s OTR Tire Conference. The first offering in the line, the General TE188, has been designed for loaders, graders and small articulated dump trucks. “We felt this was the right time” to unveil the bias-ply General line, said Shawn Rasey, director of global business development, earthmover tires, Continental. It gives dealers who offer a “good-betterbest” selection of OTR tires “a great offering in the ‘good area,’” he added. “There are so many options in the OTR space right now. Our dealers now have the ability to offer a competitively priced product with a brand name that customers know and love.” MTD recently caught up with Rasey to discuss market reaction to the line. He also discussed the impact of the COVID-19 pandemic on construction tire demand, what the rest of the year will bring and more. MTD: How has the COVID-19 pandemic impacted demand for construction and small OTR tires in North America? Rasey: It’s been crazy for everyone. Early on, we could see dealers and end users trying to conserve cash and use up whatever inventory

Also in CTD Data driven: Construction fleets want more info than ever, says STTC ........50 Bridgestone invests in tire tracking ................................................51 AG Tire Talk: Tire/wheel conversion, RCI and lead-lag .................................52 ‘The era of trial’: Door is open for value truck tire brands ..................... 57 Commercially Viable ........................ 58

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they had in stock already. As time has worn on through the pandemic, the purchase/sell process has settled back into a more normal state of buying what is needed and starting to plan for forward requirements. Not all parts of the market are on the same trend line, however. We see significant variation in demand and activity, area by area. This is true in both geographic terms, as well as in market segments. Mining seemed to take a pause early on, while construction has been robust, along with good strength in the aggregates segment. MTD: Can you describe the current state of construction tire demand? Rasey: We saw strong demand and positive growth signs in both January and February, and even into March, as 2020 started. In April and May, the market seemed to slow. But beginning in June, demand started to turn more positive. Without COVID-19, I could see that the market would be up multiple points over 2019, but that is not a reality now. Market indicators point to a more gradual recovery — not quite the traditional, V-shaped recovery that we’ve seen in some previous cycles. But then again, this has been a once-in-a-lifetime event. MTD: What will the rest of the year look like and what trends should small OTR and construction tire dealers keep an eye on? Rasey: Clearly, we’re seeing a stronger second half of the year compared to the first half. But whether we get back into any type of supercharged, stronger recovery may have to wait until the election in November. For dealers, I think the key will be watching the demand trends in their local markets and staying nimble in a way that allows them to react to stronger demand when it materializes by being well-aligned with their supply partners. If markets bounce back faster than we anticipate, there is always a risk of supply

“We’ll be adding a whole new skid steer and backhoe offering in the light construction segment later this year,” says Shawn Rasey, director of global business development, earthmover tires, Continental.

being properly aligned with demand — having enough of the right tires when you need them. We’re working hard every day to keep our fingers on the pulse of the market and to have the right supply plans in place to meet our customers’ requirements. MTD: Can you bring us up to speed on the recently introduced General biasply line? What has market acceptance been like? Are you planning to add new products or sizes to the line? Rasey: It’s been overwhelmingly good — even better than what we expected. Dealer and user acceptance of the “new” General brand in OTR happened almost immediately. Our product line fills an important niche: high quality, in key sizes that are priced in a great spot. We’ll be adding a whole new skid steer and backhoe offering in the light construction segment later this year and we’ve started plans to evaluate some additional product gaps that some key customers have asked us to address. MTD August 2020

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Data-driven OTR Sales

DATA-DRIVEN

CONSTRUCTION FLEETS WANT MORE INFO THAN EVER, SAYS STTC By

Mike Manges

elling tires to construction fleets has always been a tough business. And it has become even more challenging as construction companies apply extra scrutiny to their tire budgets and purchasing decisions due to continued, COVID-19-driven uncertainty. This, in turn, is forcing construction tire dealers to lean even more heavily on performance tracking and analytics to help clients make better decisions about their tire assets, according to Kyle Kutzler, director of OTR tires, Service Truck Tire Centers (STTC), which is based in Bethlehem, Pa. “We’ve been selling OTR tires for a few decades,” says Kutzler. “We service every customer, from smaller construction and asphalt companies to large gravel and mining operations — and everything in between. And when it comes to construction, specifically, we service everything from wheelbarrow tires to loader tires. “COVID-19 has changed the way we do business a little bit. And construction fleets are looking at things differently. They’re educating themselves differently and they’re purchasing differently. “Before COVID-19, decision-makers may have been thinking, ‘If it’s going well and what we’re using is working well,’ they would probably (continue to) buy off that basis,” he says. “But the pandemic has shaken up the market a bit. Owners are looking at their budgets. They’re doing deep dives on their purchasing. You need to provide data (to them.) Data is going to drive a lot of decisions and a lot of sales.” An increasing number of construction tire customers “have gotten savvy to analytics and understanding how a piece of equipment is moving within their operation and the degree at which the vehicle travels, when speed increases, when it slows, how the driver operates the vehicle — it goes beyond the cost of the tire and having the right tire for the application,” he says. STTC, which has 45 commercial tire

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locations, performs fleet surveys and equipment checks for its construction fleet customers. “We track the tire through its full life cycle, which gives customers accurate cost-per-hour.” The dealership promotes Michelin and Camso brand OTR tires, “which are definitely not the cheapest. People need to justify to their supervisors why they’re choosing a tire that might cost (significantly more) than another tire. We offer these services as a value-add,” instead of charging for them. STTC retreads OTR tires. The dealership also operates an in-house OTR tire repair center, where trained technicians perform spot and section repairs on tires up to 35 inches in diameter. Performing repairs in-house enables faster turnService Tire Truck Centers technicians perform around times, which customers equipment surveys and other field services. appreciate, says Kutzler. The company’s tire repair business increased during the early weeks “We had a target fleet that dealt with of the pandemic. “I think there was a lot multiple tire suppliers and bought multiple of uncertainty with all the shutdowns. brands and had a few locations. We perCustomers weren’t sure what was going to formed surveys and tracking consistently happen and were looking to utilize all of for four years to provide them with a costtheir assets. When you’re buying tires that per-hour on the products in their fleet. cost thousands of dollars, fleets aren’t going “Prior to this, the customer had no data to over-purchase, not knowing what the and no records of anything” pertaining future is going to hold.” to tire performance, he says. “We introThe “very forecasted and budgeted” duced retreading to the customer and we nature of construction tire purchasing introduced an asset management system. benefits STTC, as well, he explains. “It’s We also pooled all of their tires into one, equally important for us to understand central location. Before that, their locations when the customer is going to buy because had run independently. it helps us reduce the amount of inventory “We lowered their overall maintenance sitting around. Otherwise, we’d have millions budget and in return, we won 100% of their of dollars of tires laying around.” business. By providing four years of hard STTC’s focus on data and analytics data, we proved to them what products, application-wise, worked best for their enabled it to recently displace several competitors at a major client, according fleet. We also showed them how to utilize to Kutzler. their casings.” MTD August 2020

8/7/20 10:10 AM

Commercial Tire Dealer™

BRIDGESTONE INVESTS IN TIRE TRACKING ITRACK SYSTEM MONITORS ULTRA-LARGE OTR TIRES

Mike Manges

ridgestone Corp. recently acquired Transence Technologies’ iTrack Solutions Business unit, which the tiremaker calls “a globallypreferred provider of tire management solutions for the OTR vehicle market.” The iTrack system monitors temperature, air pressure levels, vehicle speed and other metrics that are critical to optimal OTR tire performance. In this MTD exclusive, Brian Goldstine, president, mobility solutions and fleet management, Bridgestone Americas Inc., discusses why Bridgestone made the investment, how iTrack will benefit Bridgestone OTR tire dealers and end users, and more.

Goldstine: Yes. The iTrack tire management solution is primarily targeted to OTR tires, sizes 57-inch and above. However, iTrack does have capability to serve OTR tires in other sizes.

MTD: Why is Bridgestone investing in its OTR tire management capabilities? Goldstine: Tires are a critically important asset for any operation and maximizing that investment through the integration of tire management solutions is a must. Technology like the iTrack tire management solution allows operators and site managers to have visibility into their fleet’s total operation, from real-time tire data and predictive analytics to production optimization.

Bridgestone’s newly acquired iTrack system monitors ultra-large OTR tires.

MTD: Why did Bridgestone specifically select the iTrack system? Goldstine: The iTrack acquisition helps move Bridgestone closer to its goal of becoming a leader in sustainable and advanced mobility solutions. Bridgestone recognized iTrack held a leading position in the market as a best-in-class mining tire management platform. The addition of the iTrack business to our solutions portfolio strengthens Bridgestone’s ability to serve our OTR customers by delivering insights and information that will enhance their operations. MTD: Is iTrack specifically geared to monitoring tires used in mining applications? w w w . M o d e r n T i r e D e a l e r. c o m 05_MTD_CTD-CommerciallyViable.indd 51

MTD: Does iTrack have aggregate/quarry and construction tire applications, as well? Goldstine: The iTrack solution is currently focused on mining applications. However, Bridgestone has a robust OTR solutions portfolio that includes offerings for aggregate/quarry and construction applications. PressureStat is our tire pressure and temperature monitoring system for smaller OTR tire fitments. While the initial focus for the iTrack solution is mining, this acquisition will enable Bridgestone to strengthen our solutions offerings for a variety of applications and improve our entire mobility solutions ecosystem. MTD: Can you describe how the system tracks metrics like temperature and pressure monitoring, speed and others? Goldstine: The iTrack platform uses a sensor to measure tire temperature and pressure. In addition to the sensor, the system has GPS and six axis accelerometers that measure horizontal and lateral g-force through curves, uneven roads and harsh braking/acceleration to ensure operators aren’t putting undue stress on their tires. Aggregating all of this information, the

iTrack platform generates powerful data analytics that can be used to create targeted maintenance schedules, reducing equipment downtime. Early identification of air leaks and managing tire temperatures also helps to reduce the number of premature tire failures. MTD: Bridgestone mentioned that iTrack provides customizable geofencing, which is a feature that traditionally has not been associated with OTR tire performance monitoring systems. How does this benefit both the OTR tire dealer and end user? Goldstine: Geofencing enables stakeholders to identify specific areas of operation and to create parameters for each zone. These rules can improve safety and extend tire life by helping fleets identify excessive speed in curves, inclines or straights. In addition, fleets can use geofencing to establish specific zones for maintenance. For example, operators and servicing dealers using geofencing could turn off alerts for pressure or temperature events that occur within a maintenance zone during planned maintenance. MTD: How do you envision your dealers using the program to help reduce end users’ operating costs? Goldstine: Solutions technology like iTrack offer dealers a competitive advantage. When dealers combine their industry knowledge and experience with a collaborative technology platform like iTrack, the result is a data-driven partnership that improves end users’ safety, optimizes their productivity and creates operational efficiencies. In addition to helping fleets optimize their operations, the insights generated by iTrack can help dealers become more precise and efficient with their service offering. Ultimately, they are able to provide mining customers with better service at a lower cost. “We firmly believe the iTrack acquisition moves Bridgestone closer to its goal of becoming a leader in advanced mobility and sustainable solutions,” he says.

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A G T i r e Ta l k

TIRE/WHEEL CONVERSION, RCI AND LEAD-LAG FACTORS TO KEEP IN MIND WHEN UPGRADING TIRES 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: When should growers consider tire/wheel conversion, how should rolling circumference index (RCI) be used and what checks should be made to ensure correct lead-lag/ transmission operation and proper clearance? NICK PHILLIPPI, national product manager, Alliance Tire Americas Inc.: When it comes to a tire/wheel conversion, step one is to determine the goal or the need of the equipment. What isn’t it doing? What do you want it to do better? Then determine if you’re doing all you can with what you have. For instance, are you operating at the optimal inflation pressure? Is the machine ballasted properly? Finally, seek out all options to really determine which makes the most sense. Although there can be benefits to switching to taller or wider tires, they are not always the best choice. Determine if you already have the correct size, load index and type of tread on the unit before you move to make major changes. If a customer is looking for more footprint and is thinking about a larger tire, you need to be sure you don’t equip him with too much tire. Also, be sure you understand the air pressure

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requirements at different operating loads and speeds. You may have a situation where you have the right tires for a customer but will need a central tire inflation system to take advantage of them. Most tire/wheel conversions are done to gain footprint or increase tire volume, which lowers air pressure and reduces compaction. But before you jump to expensive or complicated solutions, first determine if moving from a bias-ply tire to a radial tire or from a standard radial to a very-high flexion (VF) tire will help achieve your goal. One of my favorite up-fitment examples for a very popular tractor setup is switching out 480/80R50 and 380/80R38 sets to VF480/95R50 and VF380/95R38 sets. You don’t need a rim change, there are normally no clearance issues and you can lower ground pressure. Whenever you change sizes, you must maintain the correct lead/lag by keeping in mind the RCI, which factors in the length on the ground of one full rotation, plus the height of the tire. Tractors are designed around a very specific ratio between the RCIs of front and rear tires. To avoid excess tire wear, change the front and rears in the same percentage. MTD August 2020

8/7/20 10:11 AM

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A G T i r e Ta l k DAVE PAULK, manager field technical services, BKT USA Inc.: There are several instances where it might make sense to change or convert tire sizes and wheels on tractors. Switching from bias-ply tires to radial tires would be a smart move in the right circumstances. If narrower or wider tires are wanted or needed on mechanical front wheel drive (MFWD) tractors, staying within the correct lead/lag ratio will probably require changing out tires and wheels. These size changes are often required when going from wider to narrower rows or vice versa. MFWD tractors have different sizes of tires on the front and the rear. The transmission must be geared so that both fronts and rears turn at basically the same speed, since the fronts will turn more revolutions. By knowing what the front-to-rear gear ratio is on a tractor, you can use the RCI to stay within the required range for the tractor. When selecting a new tire size, choose the same front and rear combination RCI that matches up with the original tires. On MFWD tractors, if the fronts are too big and/or the rears are too small, the fronts will pull the rears, which we call “lead.” If the fronts are too small, the rears will push the fronts. This is called “lag.” When moving from a standard size tire to an increased flexion (IF) or a VF tire, manufacturers recommend a wider wheel to maximize the benefit these tires offer for weight-carrying capacity and lower air pressures. Because of the increased air pressures and load carrying capacities of IF and VF tires, it would be wise to check the standard wheels being used. Make sure they are built to handle the higher pressures and loads these tires will carry. JIM ENYART, technical manager, CEAT Specialty Tires Inc.: There are several situations when a farmer should consider converting his current wheel/tire setup to an alternative configuration. Typically, a farmer wants to produce the highest yield with the best quality at the least cost of production. If a farmer determines that compaction is limiting his or her ability to produce the highest yields and quality, an assessment needs to occur to identify the cause of the compaction. An action plan to correct the compaction problem needs to be developed and implemented. Converting tire sizes to reduce compaction can help by lowering ground pressure from your equipment. If a tractor uses bias-ply tires during field operations, you can simply change to a tire that features IF or VF technology to reduce ground pressure, as well as increase traction. If converting to these higher-technology tires does not satisfy ground pressure reduction goals, you may opt for a conversion to tires with a larger air chamber. These conversions will typically need rim changes, also. Keep in mind that when changing tire sizes on front wheel assist tractors, you need to maintain lead/lag ratios. This will enable the tractor to operate mechanically within its design parameters. HARM-HENDRIK LANGE, customer solutions engineer, Continental Agriculture North America: The first thing to consider is the tractor’s operators manual and what is written about tires and tire exchange. Many tractors have special requirements. While general recommendations vary in the percentage values of proper lead—often 0% to 5% - many manufacturers have a smaller tolerance band for specific tractor types. This needs to be considered when changing tires.

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Check to confirm the lead and acceptable technical data for each tire change individually. For enhanced traction and minimal soil compaction, always choose the highest RCI option that the tractor manufacturer allows. Factors that could lead to smaller tire diameters include if the total height of the vehicle needs to be limited and if the turning diameter needs to be optimized If the tractor is mainly used for field work, lead percentage may be chosen on the upper tolerance of the permitted band. This allows for sharper field end turning. If the lead is very low, a tractor tends to go straight even with turned steering wheels. If a tractor operates part-time or is on the road often, lower lead values may be considered. In addition, the RCI difference between the front and rear axle should be kept constant. Since exact rolling circumference values can vary from the theoretical RCI numbers, the most precise calculation can be reached by using the real rolling circumference data from the tire’s datasheet. GREG GILLAND, vice president, global agricultural program, Maxam Tire International: As the industry has evolved from two-wheel drive tractors to MFWD tractors, tires have also evolved in design, materials, functionality and performance. One of the key tools used to adapt or convert tires from crop to crop or grower to grower is the RCI. Each MFWD tractor must maintain a balance between positive slippage or the front tires and negative slippage, when the front tires are slower or lagging. This balance is also known as the lead or lag ratio. Too much positive slip results in excessive work by the front tires. This equates to a loss of efficiency and higher fuel consumption. If you have negative slip, the front tires will experience a braking effect that creates a loss of pulling power, more fuel consumption and reduced steering capability. Each OEM publishes a recommended gear ratio for each tractor it manufactures. Tire manufacturers also should provide their RCI values in their published product data books.This can help you calculate the right size tire fitment from front to rear, which will help ensure the right amount of positive slippage or pulling power for the given gear ratio. DAVID GRADEN, operational market manager, agriculture, Michelin North America Inc.: Most commonly, you will use lead/lag calculations or RCI when converting tires and wheels from duals to wide singles, converting bias-ply tires to radial tires and converting old, standard radial tires to newer metric tires. The purpose of this would be to increase flotation, reduce soil compaction, lower fuel consumption or improve productivity. RCI is commonly used to match front and rear tires to each other within a given gear ratio. However, not all tires have a published RCI. This is where you have to be careful. In instances when RCI is not available, you may need to calculate the mechanical lead. Most tractor manufacturers impose a mechanical lead of between 0% and 6%. This could also vary, depending on the manufacturer and the vehicle. If tires are mismatched with respect to the mechanical lead ratio of a machine, the tractor owner could experience increased fuel consumption, erratic or rapid front/rear tire wear and overall poor tractor performance. MTD August 2020 8/5/20 8:51 AM

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A G T i r e Ta l k SCOTT SLOAN, ag product manager, Titan International Inc.: There are many occasions when an end user is looking to change the tire set-up on their tractors, such as going from narrower, row crop section widths to more of a floatation configuration. What needs to be considered are the gear ratio of the tractor and the lead/ lag ratio. Front tires typically are spinning 1% to 5% faster than the rears. This ratio is important in the performance of the tractor. The tire industry has developed the RCI system to help dealers pick tire size combinations that will work. There are charts available that show the different sizes and their perspective RCI values. If the lead/lag is not correct, there can be issues with tractor performance. For instance, if the front tires are not changed, this will put the tractor into a negative lead/lag. This means the rear tires will push the fronts, which could lead to the differential binding up and potentially locking. Whenever changing a fitment, it is best to understand what is currently on the tractor and what the RCI drop is from rear to front. Once that is understood, it is relatively easy to identify sizes in the appropriate RCI that will work. On a final note, it is important to verify that new tires will clear all the fenders, frames, fuel tanks and toolboxes on a tractor. NORBERTO HERBENER, OE applications engineer, Trelleborg Wheel Systems: There is not a tire combination that is a “one-size-fits-all” solution and often different operations require

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different sets of tires for the same equipment. With MFWD tractors, the relationship between the front and the rear axles must be maintained in order to have the best traction performance and to avoid transmission issues. The front tires must always turn faster than the rear tires, as they are smaller and need more revolutions to cover the same distance. If a tractor’s front tires cover less distance than its rear tires, this could create a braking effect with potential transmission damage. Each tire size has theoretical calculated dimensions called nominal values. These dimensions allow for tolerances. Depending on brand, the same tire size may have a different RCI. These differences could allow the same size from one brand to be included in one RCI group and another brand tire to be included in a different RCI group. The RCI specified for each tire size and model in tire manufacturers’ data books is measured when the tire is set at nominal inflation pressure and under nominal load. The tire’s RCI will change, depending on the inflation pressure used for the load on that specific equipment. In order to be able to consider all tires, including ones out of the RCI spread, you need to use the actual RCI of both tires and the inter-axle ratio for that specific tractor model. This ratio will change, depending on the tractor model, type of transmission it uses and the front axle configuration. RCI can provide good, initial guidance when changing tire sizes. But always check to make sure you have the right inter-axle lead percentage to avoid transmission damage. ■

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MTD August 2020 8/6/20 11:27 AM

S a i l u n Tr u c k T i r e s

‘THE ERA OF TRIAL’

DOOR IS OPEN FOR VALUE TRUCK TIRE BRANDS, SAYS SAILUN By

Mike Manges

he impact of COVID-19 on trucking fleets’ operating budgets has created an opening for “value tier” commercial truck tire brands to gain additional market share, according to Kevin Lake, vice president of marketing, Sailun Tire Americas. Lake calls this “a fantastic opportunity” for the Sailun brand, which, according to MTD research, currently enjoys 2% share of the United States replacement truck tire market. It also mirrors what’s happening in the consumer tire segment, he says. The growing preference for lower-tier products “is a direct reflection of financial pressure. People are stretching their nondiscretionary purchases. The same thing is happening with truck tires.” Combine the increased pressure on fleet equipment managers to control costs with “some pretty significant structural changes” in the way freight is hauled — including rapid growth in the regionalhaul segment — and “this is an opportune moment,” says Lake. “There are some other intriguing things that are going on. Class 8 truck sales are at a record low. Many fleet managers are delaying or forgoing the purchase of new equipment, which will only accelerate the replacement market. “I also think the awareness level of how much the quality gap” between various tiers “has closed is increasing. That’s why we are seeing share growth in the value tier,” which Lake believes “is outpacing tierone and tier-two.” Sailun recently introduced two new truck tires, including the S702, a regional drive tire for pickup and delivery applications, and the S705, a wide-base product for long-haul trucks. “We are very serious about taking a leadership position within the value tier,” says Lake. “We’ve set our sights on doubling our market share.” Larger trucking fleets that participate in national account programs could Sailun recently introduced contribute to this effort, the S702 regional drive he says. tire, which targets regional Sailun doesn’t currently pick-up and delivery apoffer a national account plications. The tire carries 3-Peak Mountain Snowflake program with big fleets, certification. “but that’s an area we’d like

to grow in,” he says. “You’re probably going to see us open up in trying to pursue some of that business. “Obviously, when it comes to expansion and working with some of these bigger juggernauts, we would work closely with our distribution network to best determine our approach to servicing these large fleets,” says Lake. “Ultimately, it may be a hybrid approach that looks a little different than the traditional national account programs offered by other tire manufacturers. This would also ensure we work together with our well-established distributors and their robust dealer networks to service the requirements of large regional and national fleets. “Everyone is looking for ways to add to the bottom line,” he continues. “A lot of fleets are re-evaluating the savings opportunities that are out there and the potential of working with different brands that they may not have in the past. “It’s almost the ‘era of trial’ for the value tier,” says Lake.

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HEXCHEX®

3/30/20 10:54 AM 8/7/20 10:11 AM

Commercially Viable Roadmaster RM258 offers winter traction

Yokohama adds sizes to 714R

Cooper Tire & Rubber Co. has launched the Roadmaster RM258, which features a new tread pattern with an open shoulder design and four rows of lugs, plus shoulder notches and chevron grooves for enhanced winter traction. The Roadmaster RM258 also features four-belt steel construction; a deep, 26/32-inch tread; 3D lug siping; tie bars in the shoulders that promote uniform wear; stone ejectors in the tread grooves; curb guards; and enhanced compounding. The tire is currently available in sizes 11R22.5 and 11R24.5. COOPER TIRE & RUBBER CO. www.roadmastertires.com

Yokohama Tire Corp. has added two sizes, 225/70R19.5 (14) and 245/70R19.5 (16), to the Yokohama 714R truck tire, which has been engineered for urban pick-up and delivery applications. Unveiled earlier this year, the 714R features open shoulder grooves for enhanced wet and snow traction; a newly designed, wide tread pattern for optimal longevity; tie bar connectors that minimize wear; funnel-shaped step grooves to prevent casing damage; an advanced compound that significantly reduces rolling resistance; and more. YOKOHAMA TIRE CORP. www.yokohamatruck.com

Bandag gets MaxTread line The new Bandag MaxTread line from Bridgestone Americas Inc.“features quality Bandag retreads as a standalone, single unit tire solution, rather than a traditional cap and casing offering,” according to Bridgestone officials. The line includes trailer, drive and all-position fitments for longhaul, severe service, waste haul, pickup and delivery, and other applications. The MaxTread family includes popular Bandag retread patterns, including BDM, BDLT, BDV, DR5.3 and DR4.3 (drive position); the TR4.1 and Eclipse (trailer position); and the BRM (all-position.) All are backed by a lifetime limited warranty, featuring 100% coverage for the life of the tread. BRIDGESTONE AMERICAS INC. www.bandag.com

Toyo unveils super-regional tire Toyo Tire U.S.A. Corp. says its new Toyo NanoEnergy M171 super-regional all-position truck tire provides fuel efficiency, enhanced longevity and increased stability thanks to the company’s Nano Balance Technology. The SmartWay-verified M171 has been designed to complement the Toyo M671 super-regional drive tire. It incorporates Toyo’s E-balance design, which maintains the tire’s profile while reducing strain in the bead area and belt edge for optimal stability and longevity. The tire is available in four sizes: 11R22.5 14/G, 11R2.5 16/H, 295/75R22.5 14/G and 295/75R22.5 16/H. TOYO TIRE U.S.A. CORP. www.toyotires.com

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TBC expands Power King line The new Power King Towmax Vanguard from TBC Brands “provides significant enhancements in performance and appearance, while providing industry-leading durability and warranty coverage,” according to TBC officials. The tire features decoupling grooves and an optimized tread depth to reduce rolling resistance and heat build-up, which helps extend service life. Large shoulders and an extra-wide tread face provide even load distribution and stability through a larger contact patch. It is available in a wide range of size and load range configurations. TBC BRANDS www.tbcbrands.com

BKT builds industrial tire lineup Balkrishna Industries Ltd. (BKT) has added two products, the MAGLIFT Eco and the MAGLIFT Premium, to its forklift tire portfolio. The Eco features two layers of rubber compound and extra-wide lugs “to guarantee outstanding stability and excellent load distribution,” according to BKT officials. The Premium features an extra-deep tread for long life, a robust tread design for enhanced steering control and more. BKT’s MAGLIFT range includes 23 popular sizes. BALKRISHNA INDUSTRIES LTD. (BKT) www.bkt-tires.com MTD August 2020 8/6/20 1:30 PM

Business Insight

First, understand — then offer HOW TO SELL CUSTOMER FINANCING MORE EFFECTIVELY By

Dennis McCarron

y column this month is about consumer finance Consumers today are intelligent. And they are exposed to thousands of sales-oriented impressions a day. Blunt tools no options. And it may ruffle some feathers. I think longer have the strength to capture a customer’s attention and that offering options to consumers so they can create a “yes” moment. make the best decision for their vehicle, their Let’s look at a few examples. A man walks into your store. His budget and their situation is great. What I see decade-old Honda sits in the parking lot. He asks your service as a massive opportunity for our industry is in how we offer advisor to provide a price on a new set of tires. Being skilled at that option. For decades, the most common training approach to offering her job, the advisor starts to ask questions on the way out to the credit financing to consumers has been to beat them over the customer’s car. She discovers that the customer is a father who head with it. Ever hear of the following? is sending his first-born daughter off to college in a month, in a “Offer it three times.” hand-me down vehicle. “Mention credit terms every time you talk to customers.” Instead of beating the customer over the head with repeated “Before you mention price, make sure you talk about generic requests to open a credit card, the advisor informs him finance options.” that your dealership has a special credit card that can only be This was a fine way to do business — in 1982. Consumers used for automotive repairs. have become much more sophisticated in the way they conduct In another scenario, a mother of four children is impatiently business. The “offer-three-times” approach is just too blunt of an waiting in line at your store. She has a million things to do today, instrument. It belongs in a museum, not a dealership. including picking her oldest son up from football practice. She Some may argue, “Hey, I have done this for is finally greeted by the store manager, who years and it works. In fact, I signed someone apologizes for the wait and tells her that it’s up yesterday.” And I’m sure that’s true. I’m not been an unusually hectic afternoon. The ‘offer-three-times’ saying it never works. The issue, however, is The customer states she was driving along that this particular approach is also costing and one of her tires went flat. The good approach is just too Samaritan who helped her put the spare on you business. blunt of an instrument. The main way it’s costing you busitold her all four of her car’s tires looked to ness is that employees deep down know be in rough shape, so she now unexpectIt belongs in a museum, this approach is aggressive and after a edly needs to purchase four tires. While not a dealership. handful of “No’s,” will simply stop asking your store’s manager retrieves the tire size, customers altogether. I’m sure every shop the conversation turns to unexpected large owner reading this sentence has a few purchases and how frustrating they can be. employees who don’t ask for sign-ups unless you stand over The manager, once ready to discuss which tire is best, suggests them. The reason they don’t ask “three times” is because it’s that if the customer is interested, and since this is an unexpected simply overly aggressive. situation, your dealership has a financing offer that provides interest-free terms for 120 days — and if she wants to use this, it The second way this approach can cost you business is that it can frustrate customers. Some customers like using their existing won’t tie up any space on her usual credit card. credit card or feel they don’t need another card. They don’t want In both instances, the key is to engage with the customer and learn something about them. Today’s consumer is tuned to be bludgeoned over and over. Some might even feel insulted by repeated offers, thinking it implies they can’t afford a purchase into advisors who listen well and will tailor a solution to fit their without having to finance it. particular needs. It’s just the wrong approach. So what’s the better way? If the individual at your sales counter is only going to repeat In simple terms, it’s about understanding your customer memorized lines, today’s customer may go elsewhere. ■ before making any offer. Spending just a few minutes talking with the customer and discovering his or her true needs will Dennis McCarron is a partner at Cardinal Brokers Inc., one of the leading allow an advisor to tailor the approach, which is what separates brokers in the tire and automotive industry (www.cardinalbrokers.com). To contact McCarron, email him at dennis@cardinalbrokers.com. professional advisors from basic sales people. w w w . M o d e r n T i r e D e a l e r. c o m

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59 8/6/20 11:38 AM

DSP Insight

Lessons learned for your P&L COVID-19 FORCED YOU TO CHANGE FOR THE BETTER. KEEP IT GOING By

Jeff Morgan

he spring of 2020 was very difficult for most tire dealers. over into the customer convenience world that many other retailers have occupied for years. The COVID-19 pandemic and subsequent lockdowns had Have you ever purchased items through Amazon? Why did many scrambling to keep their essential businesses going. Sure, there were assistance programs available, like you do it? You were able to shop for what you wanted from your the Paycheck Protection Program (PPP) loan and the computer while at home, buy the product at a reasonable price Economic Injury Disaster Loan, which many took advantage of. and have it delivered to your doorstep within a few days. In some cases, it arrived the same day! But even more than this, dealers had to make changes to the way they did business just to get through. These were difficult Because of their business model, Amazon changed the face of decisions to make but they were necessary to keep their businesses retailing. Soon, other traditional big box retailers started offering moving forward. free home delivery on website purchases. They also created a way As the summer came, business started to rebound. Many for you to buy what you wanted online, drive to their location dealers experienced record sales as people and their cars got back and have it brought out to you. out on the roads. This was — and is — great news. Companies like Instacart offered to do your grocery shopping However, to keep your P&L moving in the right direction, for you, delivering the items you wanted from your favorite superit is important to look back on the lessons learned during the market to your doorstep for a nominal fee. Many grocery stores difficult times and apply these, moving forward. are now offering that same service directly for their customers. There are three main areas that impact your profitability: sales, In the tire and auto service industry, other than some e-commerce gross profit and expenses. As you look at what you did to navigate platforms, this convenience factor has had a minimal impact through the hardest times of the pandemic, you will see that on your business — at least until now. However, with so many there were several things that were done to impact these areas. people getting a taste for “touchless” service in our industry, more However, just because business and demand picked up customers now recognize the value of this convenience and will does not mean that all the adjustments you made should go likely want to use it more. away. In fact, some of these things need to become part of what you do moving forward in order for your business to remain competitive. Ronald Reagan once said, “Don’t be afraid to see what you see.” As you look back, do not be afraid to see the things that you did and recognize that you need to continue doing them. Here are a few examples to consider. To help get cars into your store, many of you introduced or enhanced “touchless service” options. These are things that eliminated — or at least greatly limited — customers’ personal interaction with your business. They may have included a pick-up and drop-off service for vehicles, a text-to-pay option or a way for customers to pick up their cars and keys at their comfort and convenience. I can assure you that the demand for these services are not going to go away. During the pandemic, many employees discovered a productivity “sweet spot” that If anything, we will see the demand for was always there. To keep up, everyone just had to perform at levels that they were them increase as we have finally crossed already capable of attaining.

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MTD August 2020 8/5/20 8:55 AM

As such, you not only need to continue these services but you also need to proactively market them to current and potential customers as a way to draw in more business and ultimately increase sales. Another great way to increase sales and gross profit is through performing vehicle inspections. When business was slow, many tire dealers doubled down on the quantity and quality of inspections. As a result, during the period in which car counts were at their lowest, the sales-per-ticket average went up. This was not due to raising prices. It was from performing thorough, quality inspections and bringing the findings to the customer with an estimate, and then asking for the order. In many cases, these discoveries were scheduled maintenance services that were overdue. Many also consisted of unrealized repair needs like brakes or steering/suspension components. Most of these services are a great value for the customer. It was easy for the customer to say “yes” to them, which in turn provided high-grossing items for you. Make performing quality vehicle inspections part of what you Historically, when business and car count increase, you typido. Your customer wins and your business will win. cally see inspections and inspection quality decrease. I often hear the excuse that the shop was “too busy” to perform high-quality inspections. That is akin to saying that there are too many dollars is 100%. By the same token, you should not expect anything on the floor to pick up. less. Some people were put into a position that required them We all know the value of vehicle inspections. But I challenge you to do what they were always capable of doing but had just to look at it from the customers’ perspective. Is it the customers’ never been asked to do so. This is one important thing that the fault that they chose to bring their vehicles in on a busy day? Do pandemic revealed. And those employees who were compensated or bonused those customers deserve any less quality of service because they on productivity recognized a double-positive. Not only were brought their cars in when you had a lot going on? The answer to both questions is “no.” Make they making more money because of their performing quality vehicle inspections part increased production but they now had of what you do — no excuses. Your customer more personal time because they were not wins and your business will win. working so many extra hours to accomplish You may have recognized The last lesson I want to spend some their objectives. the need to control your time on revolves around the largest controlThis work/life balance is what everyone lable expense you have, which is payroll. If is looking for today. payroll prior to the panWhile employees were reaping the benefits your payroll is running over 40% to 45% of demic but had convinced gross profit, you are too high and have an of increased productivity, so were you. You opportunity to improve. have even paid out more payroll dollars, yourself that you could not may You may have recognized the need to but the ratio of those dollars to the increased control your payroll prior to the pandemic gross profit dollars you were bringing in make any adjustments. but had convinced yourself that you could was lower, putting more to the bottom line. not make any adjustments. During the height As an added benefit, if you continue this of the pandemic, you had no choice. You had to limit staffing and way and word gets out about the improved work/life balance that hours. You had to eliminate overtime, just to get by. Even with your employees enjoy, more potential employees will seek you that PPP loan in place, you had to remain cautious with your out as an employer of choice, particularly technicians. Again, payroll spending. this is a win/win. As these control measures were still in place, business started Winston Churchill once said, “Never let a good crisis go to to pick up. You probably found that before long, your employees waste.” There is no doubt that we weathered, and are still weatherwere producing the same sales results without working all the ing, a crisis in the COVID-19 pandemic. It would be a waste to extra overtime. Payroll had fallen in line with where it should let the lessons learned through that crisis disappear. have probably always been. Do not be afraid to see what you did and how you can apply This was not from overworking your staff. It was because that moving forward to positively impact your P&L and put more they found the productivity “sweet spot” that was always there. net profit on your bottom line. ■ To keep up, everyone just had to perform at levels that they were already capable of attaining. Tire industry veteran Jeff Morgan is the executive director of Dealer strategic We often hear of people “giving 120%” or some variation. Planning, the DSP Group. He can be reached at jeff.morgan@20dsp. com or (310-533-2576) See the website www.20DSP.com. The reality is that nobody can do more than their best, which w w w . M o d e r n T i r e D e a l e r. c o m 06_MTD_Columns-TPMS.indd 61

61 8/6/20 2:12 PM

Mergers and Acquisitions

Sometimes, less is more

HOW COMMERCIAL TIRE DEALERS CAN BE MORE PROFITABLE By

Michael McGregor

aving spent most of my automotive career in retail, I’m only recently coming to understand the commercial side of the business. A friend who heads up a large commercial tire dealership recently told me that the key to understanding the commercial tire business is to take almost every facet of retail and flip it, because the opposite will be true for most commercial tire dealers. On paper, it seems like the commercial tire and service business is a great business to be in. It grows with GDP, loyal and identifiable customers can provide a recurring revenue stream and the value tire dealers provide in servicing expensive equipment has real economic benefit. A sidelined truck might mean that nothing gets done that day. But from what I’ve seen, the commercial tire business seems to be a 2% to 5% EBITDA business, as compared with 10% to 15% EBITDA at retail. I’m finding that in some cases, a $1.5 million-revenue tire retailer can make more than a $6 million commercial tire dealer. In comparing retail and commercial, it’s telling to examine who owns or controls the relationship with the customer, as they have the most power. The tire retailer — whether a single store, small chain, regional chain or national chain — controls the relationship with the customer, and for the most part steers the decision as to what tires get put on the customer’s car. As a retailer’s tire volume grows, they get lower tire pricing and higher profit margins, whether buying through distributors or from the tire manufacturers themselves. The power at retail is with the retailer. At commercial, national account customers negotiate pricing. Many bigger fleets control their own relationship with tire manufacturers. So as a commercial truck fleet’s business grows, it negotiates

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volume discounts that result in ever-slimmer margins for the commercial tire dealer, who sometimes is left with a small commission and capped labor rates. From my perspective, the power seems to be with the regional and national account customer. Some commercial tire dealers have aligned with tire manufacturers that have relationships with fleet customers. But over time, as lower-margin national accounts become a larger percentage of their business, some commercial tire dealers can find themselves working harder for less money. Keeping commercial tire dealerships healthy and serving national account customers is ever more important to those tire manufacturers that have shed their company-owned commercial outlets.

Realign toward local and regional customers and away from national accounts, if possible. Most tire manufacturers no longer have the risk and hassle of operating commercial storefronts. Commercial tire dealers have become their primary distribution network. But in this three-legged stool of customer, tire company and commercial tire dealer, the tire dealer’s leg is arguably shorter, resulting in a potentially unbalanced situation. One way to make that stool more structurally sound is to have commercial tire dealers play a larger role in the price negotiating process with national accounts, perhaps via tire manufacturers’ dealer councils. I would advise that commercial tire dealers realign toward local and regional customers and away from national accounts, if possible. If that national fleet account is not profitable enough, see if you can meet

Keeping commercial tire dealerships healthy and serving national account customers is ever more important to those tire manufacturers that have shed their company-owned commercial outlets.

with their local operators who appreciate your service levels and reach an agreement on enhanced pricing. If you can’t secure an acceptable profit, drop the customer to make room for more profitable business. Your sales will suffer but your profits will rise. Sometimes, less is more. I also see some commercial dealers getting into retail. I can’t fault them for developing a hybrid business. Based on my experience, the profit margins are better at retail and the dealer has more pricing power there. A 20 Group for commercial tire dealers in the U.S. is run by Jeff Morgan, executive director of Dealer Strategic Planning, the DSP Group. You can reach him at jeff. morgan@20dsp.com. ■ Michael McGregor is a partner at Focus Investment Banking LLC (focusbankers.com/tire-and-service) and advises and assists multi-location tire dealers on mergers and acquisitions in the automotive aftermarket. For more information, contact him at michael.mcgregor@focusbankers.com.

MTD August 2020 8/6/20 2:13 PM

Our VISION: To Be The Leading And Most Trusted Provider Of Tires And Services In All Of Our Geographic Markets.

ONE INDUSTRY | ONE NATION | ONE PLANET WE ARE ALL IN THIS TOGETHER

HOPE.

The need for hope is greater than our industry... it’s greater than all industries Combined. it’s global. It’s an honor to be working in the same industry together, but more of an honor to BE on the same planet together as one. Our hearts go out to all those directly and indirectly affected by the current global situation.

WE ARE WITH YOU. 63_K&M TIRE_0820.indd 63

7/28/20 1:16 PM

Creating a Buzz

Yes — you do have time to communicate MAKE EMPLOYEES YOUR BRAND AMBASSADORS By

Dan MacDonald

1. Hold a weekly stand-up meeting for all employees. The meeting doesn’t need to be long. Fifteen or 20 minutes will do the trick. This is your weekly chance to rally the troops. Let them know what’s working in the dealership and find something good to highlight every week. If you see exceptional service, call it out and reward that employee on the spot. If a technician is setting new productivity records, let everyone know. Use this opportunity to define excellence and reinforce your performance expectations. You can also flag areas for improvement. And always remember to take the time to listen. Your employees know what’s really going on and may have great suggestions

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know, you’re busy running the business all day, doing the books, payroll, inventory, marketing and, oh yeah, taking care of customers. Operating a tire dealership is a very challenging job, with a ton of demands pulling you in so many different directions. You just can’t take your eye off the ball. But that’s exactly what you’re doing if you’re not communicating in a thoughtful, consistent way with your employees. Your employees are your most important brand ambassadors. If they provide superior service to your customers on a regular basis, those customers will tell a friend and drive more people to your business. Word-of-mouth is powerful. But it also cuts both ways. If an employee mistreats just one customer, that could cost you a lot of future customers. People are not shy about telling others about bad service experiences. They can tell a lot of people through Facebook, Instagram and Google. It can really hurt. You have a lot to lose if you aren’t intentional about keeping your employees informed, inspired and aligned behind your mission. Here are three simple, inexpensive things you can do to drive employee engagement:

The most effective communication is two-way communication.

that will help solve a problem or improve business performance. 2. Create a monthly newsletter. This is a great tool, especially if you have multiple locations, to educate your team on the big picture and how they contribute to your dealership’s success. It’s also a way to publicly highlight great performance, explain your standards for customer service and remind employees how important it is to drive tire and auto service sales. Everyone has a role to play. If employees really understand your business goals, they’ll do what they can to help you get there. Don’t assume they don’t care. They spend a lot of time on the job and they want the business to thrive. Their jobs are riding on it. 3. Monthly one-on-one meetings. You probably talk to your manager or managers all day, but when is the last time you sat down in a quiet place to have a one-on-one conversation with a technician or sales associate? This is an opportunity for you to coach them, hear how they’re doing and receive some unvarnished feedback. You probably can’t do this every month with every employee. But you should be able

to carve out some time to do this once a month. Employees may be reluctant to give you honest, potentially negative feedback in an all-employee meeting, but might feel much more comfortable in a more private setting. Just the fact that you took the time to meet with them will be inspiring and will build loyalty. Employees thrive on respect and this kind of personal touch will help you keep the best ones. This ground-level feedback you receive from you team can be very valuable in eliminating bottlenecks or uncovering opportunities you may be missing. The most effective communication is two-way communication. By making the effort to share more and actively listen to your employees, you’ll create a culture of teamwork, accountability and excellence. ■ Dan MacDonald is a freelance writer and former public relations director for Bridgestone Americas Inc. He founded MacDonald Communications, which focuses on public relations and digital marketing. MacDonald can be reached at (615) 681-5381 or dan@maccomm.net, website: www.maccomm.net.

MTD August 2020 8/5/20 8:56 AM

TPMS

Ford/Lincoln MKT — 2011-19

he tire pressure monitoring system (TPMS) of the 2011-2019 Ford/ Lincoln MKT monitors the air pressure in the four road tires with wheel-mounted tire pressure sensors. The sensors transmit radio frequency signals to the smart junction box (SJB), or BCM in later models, approximately every 60 seconds when the vehicle speed exceeds 20 mph (32 km/h). If the vehicle is stationary for more than 30 minutes, the sensor will enter into a “sleep mode” and stop transmitting. Each tire pressure sensor transmission is compared against a low-pressure limit (the pressure listed on the vehicle certification label minus 25%, which will be about 6 to 9 psi). If it is determined that the tire pressure has fallen below this limit, the SJB sends a message to the instrument cluster, which then illuminates the low pressure warning indicator and displays the appropriate message(s) in the message center (if equipped). All tire pressure sensors are batteryoperated. The sensors are attached to the portion of the valve stem located inside the wheel with a T10 Torx screw. Under the following conditions, the TPMS may not function properly: • Low tire pressure. • Tire pressure sensor is missing or damaged. • Spare tire is installed as a road wheel. • Incorrect tire pressure sensor is installed. • Tire pressure sensor installed incorrectly. • Non-OEM wheels installed (aftermarket rims). • Non-OEM equipped run-flat tires installed. • Other non-OEM modifications (roll cages, service barriers, part racks, ladder racks, etc.)

TIRE PRESSURE MONITOR WARNING INDICATORS

NOTE: As ambient temperature decreases by 6 degrees Celsius (10 degrees Fahrenheit), tire pressure decreases 1 psi (7 kPa). Because tire pressures fluctuate with temperature w w w . M o d e r n T i r e D e a l e r. c o m 06_MTD_Columns-TPMS.indd 65

changes, tire pressures must be set when the tires are at outdoor ambient temperatures. If not the tire pressure may drop enough to be detected by the TPMS, which will activate the low pressure warning light. When the tire pressure warning light comes on solid and the message center displays “LOW TIRE PRESSURE,” check the air pressure of all tires and adjust to the specified cold pressure listed on the vehicle certification label (found on the driver’s door or door pillar). Drive the vehicle at 20 mph (32 km/h) for at least two minutes. If the vehicle has been stationary for more than 30 minutes, the sensor will enter into a “sleep mode” and stop transmitting. A TPMS sensor activation procedure may be needed. Make sure the warning light goes off. If the warning light stays on, there is a malfunction in the

IS THE ONLY

COMPLETE

TPMS. See the appropriate manufacturer service information. When the tire pressure warning light flashes for 70 seconds and then remains illuminated, after a bulb-check has been performed and the message center displays warning messages, there is a malfunction in the TPMS. See the appropriate manufacturer service information.

TPMS RESET PROCEDURES

NOTE: If a tire pressure sensor is replaced, it will need to be trained. If the vehicle has different front and rear tire pressures, the tire pressure has to be adjusted and the TPMS sensors have to be trained. If the vehicle has the same tire pressure on the front and rear tires, the tire pressure monitoring system is not affected by wheel and tire rotation.

TPMS MANUFACTURER TO OFFER A

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CONTACT YOUR AUTEL DISTRIBUTOR FOR MORE TPMS KIT OPTIONS Phone: (855) 288-3587 • USSUPPORT@AUTEL.COM AUTEL.COM • MAXITPMS.COM • MAXISYSADAS.COM

65 8/6/20 2:22 PM

TPMS

When the tire pressure warning light comes on solid and message center displays “LOW TIRE PRESSURE,” check the air pressure of all tires and adjust to the specified cold pressure listed on the vehicle certification label (found on the driver’s door or door pillar). Drive the vehicle at 20 mph (32 km/h) for at least two minutes. The TPMS sensor activation procedure may also be used in place of driving. See TIRE PRESSURE SENSOR ACTIVATION. Make sure the warning light goes off.

TIRE PRESSURE SENSOR TRAINING

NOTE: In the following procedure, TPMS Activation Tool (204-363) must be used. NOTE: The tire pressure sensor training procedure must be done on a single vehicle, in an area without radio frequency (RF) noise and at least 3 ft. (1 m) away from any other vehicle equipped with a TPMS system. RF noise is generated by electrical

66 06_MTD_Columns-TPMS.indd 66

motor and appliance operation, cellular telephones and remote transmitters, power inverters and portable entertainment equipment. NOTE: A new tire pressure sensor is shipped in an OFF mode (or battery saver mode) and must be turned ON before it can be trained. To turn the sensor on, inflate the tire to the recommended inflation pressure and wait at least two minutes, then continue with the sensor training procedure. 1) Turn the ignition switch to the OFF position, then press and release the brake pedal. 2) Turn the ignition switch from the OFF position to the RUN position three times, ending in RUN position. Do not wait more than one minute between each key cycle. 3) Press and release the brake pedal. 4) Turn the ignition switch to the OFF position.

NOTE: The horn will sound once and the tire pressure warning light will flash if the train mode has been entered successfully (if equipped, the message center displays “TRAIN LF TIRE”). 5) Turn the ignition switch from the OFF position to the RUN position three times, ending in RUN position. Do not wait more than one minute between each key cycle. NOTE: It may take up to six seconds to activate a tire pressure sensor. During this time, the activation tool must remain against the sidewall of the tire. NOTE: If a sensor does not respond to the activation tool, attempt to activate the same sensor using the activation tool. If the sensor still does not respond, move the vehicle to rotate the wheels at least 1/4 of a turn and attempt to activate the same sensor again. NOTE: If the SJB does not recognize any one of the four tire pressure sensors MTD August 2020

TORQUE SPE

8/6/20 2:21 PM

TPMS AUTOMOTIVE INTELLIGENCE

TPMS KITS ALL ILLUSTRATIONS COURTESY OF FORD MOTOR CO.

Ask Your Autel Distributor for Details

Figure 2: The tire mounting position.

turned off, the training procedure was not successful. Figure 1: An exploded view of a tire pressure sensor.

during the two minute time limit for each sensor response, the horn will sound twice and the message center (if equipped) will display “TIRE NOT TRAINED REPEAT.” The training procedure must be repeated from the beginning. 6) Place the TPMS activation tool (204-363) on the left front tire sidewall at the tire valve stem. Press the test button on the activation tool. The horn will sound briefly to indicate that the tire pressure sensor has been recognized by the SJB. NOTE: Do not wait more than two minutes between training each sensor. If the wait time is more than two minutes the SJB will stop and the training procedure must be repeated from the beginning. 7) Within two minutes after the horn sounds, place the activation tool on the right front tire sidewall -180 degrees from the valve stem for strap and cradle type sensors or at the valve stem for valve stemmounted sensors. Repeat the procedure for the right rear and left rear tires, in that order. 8) When the tire training procedure is complete, the message center (if equipped) will display “TIRE TRAINING COMPLETE.” For vehicles not equipped with a message center, successful completion of the training procedure will be verified by turning the ignition switch to the OFF position without the horn sounding. If the horn sounds twice when ignition is w w w . M o d e r n T i r e D e a l e r. c o m

TORQUE06_MTD_Columns-TPMS.indd SPECIFICATIONS

TIRE PRESSURE SENSOR ACTIVATION

1) Turn ignition switch to the ON position. 2) Place the activation tool on the left front tire sidewall at the tire valve stem. NOTE: A green light will flash and a beep sound on the activation tool for each successful TPMS sensor response. 3) Press the test button on the activation tool to activate the TPMS sensor. For best results, activate each sensor twice. NOTE: If, after adjusting tire pressures and activating sensors, the tire pressure warning light is still illuminated, there is a malfunction in the TPMS. See the appropriate manufacturer service information. 4) Repeat procedure for each remaining tire.

TS508/TS508WF PLUS

DEMOUNTING/MOUNTING PROCEDURES

CAUTION: The tire should be demounted from the wheel using the tire changer manufacturer’s instructions. Use the following information to avoid damage during the demounting/mounting procedures. CAUTION: The tire and wheel must always be correctly matched. It is very important to determine the size of each component before any assembly operations commence. Failure to adhere to these instructions can result in an explosive separation and cause serious bodily injury or death. CAUTION: Use only wheels and wheel nuts that have been designed for the current model year. Tire pressure sensors are not designed to be used with aftermarket

COMPLETE

SOLUTION

Phone: (855) 288-3587 • USSUPPORT@AUTEL.COM AUTEL.COM • MAXITPMS.COM • MAXISYSADAS.COM

67 8/5/20 3:52 PM

TPMS wheels. Aftermarket wheels or wheel nuts may not fit or function correctly and can cause personal injury or damage to the vehicle. A wheel and tire assembly equipped with tire pressure sensor will have the following verbiage stamped or cast on the wheel: “Sensor May Be Inside.” CAUTION: Tighten wheel nuts in a star pattern. Failure to follow tightening specifications may result in high brake disc runout, serious injury or death. NOTE: If possible, use a digital tire gauge (Ford Part #204-354, for example) any time tire pressures are measured to be sure that accurate values are obtained. Ford recommends the use of a digital or dial type tire pressure gauge rather than a stick type gauge for increased accuracy.

TIRE PRESSURE SENSOR

CAUTION: This vehicle is equipped with valve-mounted tire pressure sensors. Valvemounted and strap-mounted tire pressure sensors are not compatible. Swapping wheels from one vehicle to another with the different systems will adversely affect TPMS operation. Removal 1) Remove the wheel and tire. NOTE: The valve stem is connected to

Log on to yo ur OE M Wh ee l Po rta l !

the TPMS sensor. Do not pull the valve stem from the wheel, or damage to the sensor will occur. 2) Remove the valve stem core and fully deflate all tires. 3) Remove the tire from the wheel following the tire manufacturer’s directions. 4) Remove the TPMS sensor from the valve in the following sequence (see Figure 1). Using a T10 Torx, remove the valve stem-to-TPMS sensor screw. Carefully and firmly, pull the sensor straight down and separate it from the valve stem. NOTE: A new valve stem must be installed whenever a new tire or wheel is installed. When installing a new wheel, always install a new valve stem and reuse the TPMS sensor from the previous wheel if possible. The TPMS will not have to be trained if the sensor is reused. 5) Using a suitable valve stem puller and a wood block, remove the valve stem from the wheel. 6) If the TPMS sensor is being reused, inspect the TPMS sensor for damage and TORQUE SPECIFICATIONS install new parts as necessary. Component Ft.-lbs. (N.m) Installation NOTE: To prevent the TPMS sensor and Wheel nut 100 (135) valve stem damage, the valve stem must be Ft.-lbs. (N.m) installed onto the TPMS sensor and then installed into the wheel as an assembly. Sensor-to-valve 13 (1.5) Torx screw 1) Install a new valve stem onto the TPMS sensor tightening the valve stem-toTPMS sensor screw to 13 in.-lbs. (1.5 Nm). NOTE: It is important to pull the valve stem and the TPMS sensor assembly through the wheel rim hole in a direction parallel to the valve stem hole axis. If the assembly is pulled through at an angle, damage to the valve stem and sensor assembly may occur. NOTE: Use only a suitable fast-drying, corrosion-inhibiting tire bead lubricant to lubricate the tire. Use of anything other than tire bead lubricant may result in damage to the TPMS sensor. 2) Lubricate the valve stem with suitable fast-drying, corrosion- inhibiting tire bead lubricant and install the valve stem and TPMS sensor assembly into the wheel using a block of wood and a suitable valve stem installer. Do not mount the tire at this time. 3) Make sure the valve stem rubber is fully seated against the wheel. 4) Position the wheel on the turntable of the tire machine, then lubricate and position the bottom bead of the tire on the wheel. 5) Mount the tire according to the tire manufacturer’s instructions being certain to position the machine arm at 6 o’clock with respect to the location of the valve to avoid damage to the sensor (see Figure 2). Tex t Pic s to 6) Inflate the tire to the pressure specified on the Vehicle Certification (VC) label located on the driver door or door pillar. 7) Install the wheel and tire. 8) If a new sensor has been installed it must be activated (see TIRE PRESSURE SENSOR ACTIVATION and trained (see TIRE PRESSURE SENSOR TRAINING). ■ 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 Poway, Calif., Mitchell 1 has provided quality repair information solutions to the automotive industry since 1918. For more information, visit www. mitchell1.com. To read archived TPMS articles, visit www.moderntiredealer.com.

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MTD August 2020

8/7/20 10:14 AM

Products

Nama rolls out run-flats The Masse 291 and Masse 294 run-flat passenger tires from Nama Tires Inc. are available in more than 80 sizes, ranging from 16 inches to 20 inches in diameter. The tires feature Nama’s double compound rubber support design for enhanced reinforcement in the sidewall area; a high-strength wire in the bead area to avoid unseating at zero pressure; a special compound that minimizes heat build-up; and more. Nama officials say the tires can drive more than 300 miles at speeds of 50 miles per hour at zero pressure. NAMA TIRES INC. www.namatire.com

Giti unveils Adventuro ATX The new GT Radial Adventuro ATX all-terrain tire from Giti Tire (USA) Ltd. provides pickup truck and SUV owners with an aggressive look and balanced on/off-road performance, according to Giti officials. “With a 3-Peak Mountain Snowflake rating, the ATX also delivers improved performance in winter conditions.” Other features include sidewall cleats for extra grip in deep soil and on loose surfaces; an interlocked center rib for dependable on-road handling; wide shoulder channels for optimal wet surface performance; stair-step grooves for enhanced off-road traction; and more. GITI TIRE (USA) LTD. www.gitiusa.com

Petlas introduces all-season tire Petlas Tire Corp. says its new MultiAction PT565 offers all-season performance in a wide range of weather conditions. The passenger tire contains a V-shaped block pattern to help reduce fuel consumption, a compound that provides enhanced grip and other features. Petlas officials say that the tire, which has undergone extensive testing, also provides a comfortable ride. PETLAS TIRE CORP. www.petlas.com w w w . M o d e r n T i r e D e a l e r. c o m 07_MTD_Products-Classified.indd 69

Hunter expands Revolution line The newest model of Hunter Engineering Co.’s Revolution WalkAway Tire Changer features HunterNet connectivity, a savings odometer, new clamping spindles and press arms systems, the latest software and more. Hunter officials add that machines with wired HunterNet connections will soon have the ability to track and report usage data, populate trend reports and log individual tire changes. HUNTER ENGINEERING CO. www.hunter.com

CEAT targets combines with tire CEAT Specialty Tire has introduced its CEAT Yieldmax radial product line to the North American market in sizes 650/75R32 and 620/75R6. The Yieldmax features a dual lug angle for high traction and extra stability; a high lug overlap for optimal roadability; an R1W tread pattern for long life; high load carrying capacity at low pressure levels; and more. CEAT SPECIALTY TIRE www.ceatspecialty.com

69 8/6/20 11:40 AM

Products ITP all-terrain lineup expands The Carlstar Group has launched the Versa Cross V3, a high performance tire in its ITP line. Designed for high performance UTVs, the radial tire is available in seven sizes and is made in the United States. It features reinforced belts for extra traction and puncture resistance, channel cuts in the tread area to boost the number of biting edges, a compound that guards against cuts and more. It fits wheels ranging from 28 inches to 35 inches in diameter. CARLSTAR GROUP www.carlstargroup.com

OTC adds clutch/ flywheel handler The OTC Truck Clutch and Flywheel Handler can handle 14- and 15-inch clutch assemblies that weigh up to 250 pounds. The device has swivel casters that provide easy maneuverability, plus a 360-degree swivel head. It also includes a two-inch splined shaft with a pilot to aid with alignment. OTC www.otctools.com

Continental adds TPMS tools Continental has introduced two tire pressure monitoring system (TPMS) tools to help technicians handle 98.6% of all domestic, Asian and European vehicles. The Autodiagnos TPMS D reads and diagnoses 100% of the original equipment and 20 aftermarket TPMS sensor brands on the market today, according to Continental officials. The Autodiagnos TPMS SE works with 100% of the OE sensors and aftermarket sensors from EZ-Sensor and REDI Sensor. The tools can be used in a variety of lighting conditions, including direct sunlight. CONTINENTAL www.uscontinental-aftermarket.com

JohnDow unveils fluid extractors New fluid extractors from JohnDow Industries are designed to remove fluids through filler ports and dipstick tubes. They include a manual version, a pneumatic version and a pneumatic brake fluid exchanger. JohnDow officials say the extractors are designed to handle a wide range of fluids, including engine oil, transmission fluids, coolant, brake fluids and more. JOHNDOW INDUSTRIES www.johndow.com

Bartec updates TPMS software Bartec USA’s latest tire pressure monitoring system (TPMS) tool software update adds significant coverage for Bartec’s Rite-Sensor product while increasing Bartec’s OBD II capabilities. Release 62.2 includes additional tire fill alert coverage, according to company officials. BARTEC USA www.bartecusa.com

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MTD August 2020 8/6/20 4:17 PM

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

PAGE

WEBSITE

1-800EveryRim OEM Wheels

www.everyrim.com/MTD

Alliance Tire Group

www.atgtire.com

American Omni Trading

www.veneziatires.com

AUTEL

41, 65, 67

www.autel.com

Auto Job Central

www.autojobcentral.com

BendPak Inc. Ranger Products

www.mybendpak.com

BKT USA Inc.

www.bkt-tires.com

Bridgestone Tire

www.bridgestonetire.com

Continental Tire

www.continentaltire.com/offers

DSP 20 Group

www.20dsp.com

Falken Tires

www.falkentire.com

Fury Tires

www.furytires.com

K & M Tire Inc.

www.kmtire.com

Ken-Tool

www.kentool.com

Kenda Tires USA

IBC

www.kendatraction.com

Kumho Tire USA

www.kumhotireusa.com

KYB Americas Corporation

www.kyb.com

Maxxis Tires

www.maxxisaccelerate.com

Mr. Tire/Big 3 Tire

www.mrtirebig3tirectd.com

Nexen Tire America Inc.

IFC

www.nexentireusa.com

Nitto Tire U.S.A. Inc.

OBC

www.nittotire.com

Nokian Tyres Inc.

www.otrwheel.com/neverdown

Prinx Tire North America Inc.

www.prinxtire.com

Sentury Tire

www.landsailtires.com/dealer-inquiries

Snap Finance

www.snapfinance.com

Tianli Tires

www.tianlitires.com

Travelstar Tires

www.travelstartires.com

Vipal Rubber Corporation

www.vipal-usa.com

West Creek Financial

www.westcreekfin.com/mtd

ZC Rubber America Inc.

www.arisuntires.com

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MTD August 2020

8/6/20 3:46 PM

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