VikingContact 7 COMING FALL 2019 - THE TIRE DEALER'S NEWSPAPER SINCE 1983 - Tire Business
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
February 18, 2019 THE TIRE DEALER’S NEWSPAPER SINCE 1983 $79 per year, $4 per copy
Advertisement
VikingContact 7 ™
COMING FALL 2019©Entire Contents Copyright 2019 by Crain Communications Inc. All rights reserved.
February 18, 2019 THE TIRE DEALER’S NEWSPAPER SINCE 1983 $79 per year, $4 per copy
Big news for Bridgestone
A message Tire maker extends IndyCar pact,
with inflection to build race tire plant in Akron
By Bruce Davis
Tire Business Staff
Series for five additional seasons,
through 2025, Cara Adams, chief
Goodyear’s Kramer
engineer for Bridgestone Americas
AKRON — Bridgestone Americas Motorsports, said at a news confer-
Inc. plans to build a dedicated race ence Feb. 6 at the tech center.
urges industry to adapt, tire plant in Akron near its Amer-
icas Technical Center to replace a
Bridgestone has been IndyCar’s
sole tire supplier since 2000.
avoid complacency decades-old race-tire unit operating
in the former Firestone Tire & Rub-
ber Co. headquarters building.
The Bridgestone Advanced Tire
Production Center will be built adja-
cent to an existing tire-testing facil-
The decision coincides with Bridge- ity located a few blocks east of the
stone extending its Firestone race-tire company’s seven-year-old Americas
supply contract with the IndyCar See Bridgestone , page 34
Goodyear photo
Kramer
By Don Detore ordered from one of the countless mattress-in-a-box re-
Tire Business Staff tailers, there for you to try free for the first 100 days.
And that doesn’t even account for those Amazon box-
Tire Business photo by Bruce Davis
GRAPEVINE, Texas — The evidence of permanent shifts es you’ll find throughout most houses, evidence of all
that have occurred in the past few years in how we think the goods, from A to Z, that can be ordered from the
or act — what Goodyear CEO, Chairman and President online retail giant.
Rich Kramer calls an “inflection point” — is about as Each of those represents an inflection point, Mr.
apparent as a flat tire. Kramer said, a widespread change in which some things
Just look around the average household, he told those never are the same. It can happen with a new product, a
attending the tire maker’s recent annual dealer gather- new technology or another business model.
ing. That dinner sitting on the kitchen table might have “Sometimes, arguably most of the times, we don’t
been delivered by GrubHub or Uber Eats, both mobile recognize when an inflection point actually happens,” Cara Adams, chief engineer, Bridgestone Motorsports, and IndyCar veteran
food services. That couch in the living room? Perhaps Mr. Kramer told nearly 2,500 Goodyear customers, as- Al Unser Jr. speak at a news conference Feb. 6 at Bridgestone Americas’
that was ordered from online retail site Wayfair. sociates and vendors during his annual keynote address Technical Center in Akron.
That comfortable mattress? It might have been shipped at the Goodyear Customer Conference, held Jan. 27-29
In many respects, 2018 was
to your door, delivered in a small box by UPS after it was See Kramer, page 34
Commercial tires go high-tech ‘boom’ year for industry
Goodyear rolls out e-commerce platform for operators, fleets By Bruce Davis
Tire Business staff
That level of demand was met by
both the domestic industry, which in-
By Don Detore Goodyear truck tires online and then AKRON — By many business mea- creased production 4.1 percent over
Tire Business Staff schedule installations at participating sures, 2018 was a record year for 2017 to 126.3 million units, and im-
Tire Business photo by Don Detore
Goodyear commercial tire dealerships. the tire and automotive service in- ports, which were up nearly 3 percent
GRAPEVINE, Texas — Four years after Goodyear will roll out the pro- dustries in North America, starting over 2017 to an estimated 148.8 mil-
rolling out an e-commerce tire-buy- gram in three phases this year: with record U.S. tire shipments and lion units.
ing program for consumer tires, Good- • Q1, the official announcement as rebounding U.S. tire production. These and other salient industry
year is launching a similar platform well as the opportunity for business- After several years of margin- trends are found in the 2019 Market
for commercial tires. es to enroll as participating dealers; al gains and drops in the passenger Data Book, a 20-page section in this
The Akron-based tire maker an- • Q2, launch of a pilot program; and tire segment, shipments of car tires issue, starting on page 10.
nounced the launch of the commercial • Q3, full availability of the pro- shot up 3.5 percent last to 216.7 mil- The domestic output was the indus-
e-commerce program at its Customer gram, accessed exclusively through lion units, according to the U.S. Tire try’s highest since 2011, according to
Conference, held Jan. 27-29 at the Gay- a portal on Goodyear’s commercial Manufacturers Association (UST- USTMA data, and is at least partially
lord Texan resort in Grapevine. truck tire website, www.goodyeartruck- MA) statistics for calendar year 2018. See Tire , page 29
The program will allow U.S. own- tires.com.
er-operators and small fleets to buy See Goodyear, page 34
Bingham
Tire market facts .........................10-31 Largest dealerships by region..........16
DEPARTMENTS Get up-to-date information at the N. American tire market profile........10 Top retail dealerships .......................18
Automotive Service ....................7-8 Editorials ....................................... 6 Tire Business website N. American market shares..............11 DOT tire plant codes .....................20-28
Classifieds................................... 33 Obituary ........................................ 4
OE, replacement tire sizes ................12 N. America’s largest retreaders ........25
http://www.tirebusiness.com
INSIDE 2018 global tire maker rankings ......14 Automotive aftermarket trends..........30
General Tire secures contract for Goodyear suffers double-digit decline
NASCAR second-tier series ............ 3 in operating income ..............................4
Trade Commission reverses opinion on Michelin earnings slump as costs OEM Wheel Solutions
TBR tires from China ...........................3 rise ................................................ 4 Shipping Nationwide
©Entire contents copyright 2019 by Crain Communications Inc. All rights reserved.THREE RELIABLE NEW TIRES
FOR ONE TOUGH WORLD.
From the trusted name in truck tires comes the new Discoverer AT3™ family of tires, designed with
superior all-season, all-terrain traction and true durability. Recommend Cooper® with confidence,
so your customers can tackle the road, and what lies beyond.
Discoverer AT34S™ Discoverer AT3LT™ Discoverer AT3XLT™
Adaptive-Traction Technology™ Durable-Tread Technology™ for Durable-Tread Technology™
for better handling on any all-season traction and extreme for extreme loads. Available in
surface with maximum grip in all durability for hauling, with a larger sizes, and backed by a
seasons. Backed by a best-in- best-in-class mileage warranty best-in-class mileage warranty
class mileage warranty of up to of up to 60,000-miles.** of up to 60,000-miles.**
65,000-miles.*
count on cooper. ®
An American Company Since 1914.
coopertire.com
*Based on the warranty length of all-terrain tires from a leading consumer publication. Warranty terms and conditions apply.
**Based on the warranty length of LT-denoted all-terrain tires from a leading consumer publication. Warranty terms and conditions apply.Visit us on the web at www.tirebusiness.com TIRE BUSINESS, February 18, 2019 • 3
Conti gains NASCAR deal U.S. Trade Commission changes
General secures second-tier series supply contracts opinion on TBR tires from China
By Bruce Davis By Miles Moore portion of total shipments.”
Tire Business staff Senior Washington Reporter ITC Chairman David S. Johanson
and Commissioner Meredith M. Broad-
DAYTONA BEACH, Fla. — NASCAR and Continental Tire the WASHINGTON — The U.S. International bent dissented from the majority, con-
Continental Tire the Americas photo
Americas’ General Tire brand have struck a deal making Trade Commission (ITC) has reversed tinuing to find that the domestic tire
General the exclusive tire supplier and official racing tire its original opinion on truck and bus tires industry did not face material injury
of NASCAR’s K&N Pro Series, Pinty’s Series and PEAK from China, voting 3-2 to find material because of Chinese imports.
Mexico Series for the next few years. injury against the domestic tire industry USW International Secretary-Trea-
These deals are in addition to General’s status as race because of Chinese imports to the U.S. surer Stan Johnson praised the new ITC
tire supplier for the ARCA Series and the NASCAR The ITC filed its findings Jan. 30 with determination.
Whelen Euro Series and ties in with NASCAR’s plan to the U.S. Court of International Trade “The ITC finally acknowledged what
merge the ARCA and K&N Pro Series in 2020. (CIT), which reversed the commission’s our members have known since we filed
Financial terms were not disclosed. General replac- original negative determination on Chi- this case in January 2016: that illegally
es Goodyear as tire supplier for the various second-tier General Tire has been chosen to supply tires to NASCAR’s nese truck and bus tires in a Nov. 1, 2018, subsidized bus and truck tires coming to
NASCAR series, a change Goodyear said it “aligned to ... K&N Pro Series, Pinty’s Series and PEAK Mexico Series. ruling and remanded the case to the ITC our country from China hurt domestic
with NASCAR a long time ago.” for reconsideration. manufacturing and good-paying jobs,”
Goodyear continues as the supplier to NASCAR’s pre- brand awareness of not only the respective series but that The original ITC negative determi- Mr. Johnson said in a statement.
mier series — Monster Energy Cup Series; XFINITY of the drivers, teams and tracks. Our unique racing style nation came down in February 2017. In The retread industry, which faces
Series; and Camping World Truck Series. will be highlighted and that’s exciting.” April of that year, the United Steelwork- fierce competition from imports of new
The new contracts also serve as replacements of sorts The K&N Pro Series East kicked off the season for ers (USW) union — which had sought Chinese tires, was pleased with the new
for the IMSA road-racing series contracts that Michelin the NASCAR regional and international series Feb. 10 at countervailing and antidumping duties ITC determination.
Motorsport took over this year from Continental. Florida’s New Smyrna Speedway; the K&N Pro Series against Chinese truck and bus tire im- “This is good news for the retread indus-
“General Tire is committed to promoting the NASCAR West kicks off Feb. 28 at Las Vegas Motor Speedway. porters — filed a complaint with the try, but we still have a ways to go before a
regional and international series across two continents The 13-race Pinty’s Series opens May 19 at Canadian CIT, seeking judicial review. final determination is made,” the Tire Re-
and more than 11 countries with substantial investments Tire Motorsport Park near Bowmanville, Ontario, and The USW took issue with the ITC tread & Repair Information Bureau said.
across the NASCAR industry,” Travis Roffler, director of concludes Sept. 28 at Jukasa Motor Speedway near Hag- on four issues, and the CIT ruled in the Interested parties will have the oppor-
marketing for General Tire, said. ersville, Ontario, and includes one U.S. race, Sept. 21 at union’s favor on two: the commission’s tunity to comment on the redetermination
“Our team works hard to provide competitive, ac- New Hampshire Motor Speedway in Loudon, N.H. negative adverse price effects determina- and reply to those comments. If the CIT
tion-packed racing each week for the fans, and we’re NASCAR plans to integrate the K&N Pro Series and tion and its negative threat determination, upholds the ITC’s new determination, the
thrilled to be expanding that across several more series. ARCA Racing Series it purchased in 2018 — starting both of which the union said were “not Commerce Department will issue orders
We look forward to working with the NASCAR industry in 2020, a move that will give drivers the opportunity to supported by substantial evidence.” to Customs and Border Protection to col-
to grow not only recognition of the General Tire name, compete for four championships. In the filing with the CIT, the ITC said lect countervailing and antidumping duties
but the various series as well.” While the two series for late-model stock cars will con- it now found that Chinese imports had “a against Chinese truck and bus tire imports.
The tires will be manufactured at Continental’s Hoo- tinue to operate as separate entities for the 2019 season, significant adverse impact” on the U.S. In January 2017, Commerce issued
sier Racing Tire subsidiary’s Lakeville, Ind., plant, where they will operate under a new competition framework in truck and bus tire industry. final countervailing duty levels of 38.61
Hoosier has been building stock car tires for the ARCA 2020 with a model designed to preserve both series’ his- “The subject tires undersold the domes- percent against Double Coin Holdings
Racing Series presented by Menards since 1995. toric short-track lineage, NASCAR said. tic product by significant and increasing Ltd., 65.48 percent against Guizhou Tire
“The demand for NASCAR racing globally has never The new format will give drivers the opportunity to margins of underselling and depressed Co. Ltd. and 52.04 percent against Prinx
been stronger,” Brandon Thompson, managing director compete for four championships — NASCAR K&N Pro prices, preventing the domestic industry Changshan (Shandong) Tire Co. Ltd. and
of NASCAR touring series, said. Series East, NASCAR K&N Pro Series West, ARCA from increasing its revenues commensu- all other importers.
“General Tire’s investment across the NASCAR re- Racing Elite Series presented by Menards and a new se- rate with growing demand,” the commis- In antidumping duties, Commerce
gional and international series will authentically drive ries NASCAR is calling “Stock Car Invitational.” sion said in the court document. found margins of 9 percent against Prinx
Industry reps laud State of Union address
“Tier and brand premiums cannot Chengshan and 22.57 percent against
explain price underselling in instances Double Coin, Guizhou and all others.
in which the subject and Chinese tires According to Commerce data, the
By Miles Moore overlap,” the ITC said. “Both domestic average declared Customs value of
Senior Washington Reporter and Chinese tires competed directly a Chinese truck/bus tire in 2017 was
and to a significant degree in Tiers 2 and $109.59, or 28.4 percent below the av-
WASHINGTON — Representatives of 3, the tiers which accounted for a large erage for all imports.
the tire, auto parts and allied in-
dustries reacted mostly favorably to
President Trump’s State of the Union
address, especially to his calls for
Nine independents
passage of legislation to fund infra-
structure improvements.
However, they expressed some
concern over tariffs, trade agree-
join Tire Pros network
HUNTERSVILLE, N.C. — Nine independent Texas, owned by Tareq Nasrallah;
ments and other issues such as Mr. tire dealers in nine states have joined • South Coast Tire Pros in Bandon,
White House.gov photo
Trump’s call for legislation to estab- American Tire Distributors Inc.’s Tire Ore., owned by Samuel and Kelly Basey;
lish paid family leave. Pros marketing group over the past cou- • Jed’s Tire Pros in Layton, Utah,
“Overall, our members are sup- ple of months, ATD said recently. owned by Jed Florence;
portive of President Trump, and I The dealerships, located in California, • Kaiser Tire Pros in New Albany,
think they supported the speech,” Idaho, Indiana, Louisiana, Oregon, Ten- Ind., owned by Shaun McDaniel and
Roy Littlefield III, CEO of the Tire nessee, Texas, Utah and Virginia, join a Kevin Smith;
Industry Association (TIA), said, President Donald J. Trump addresses members of Congress during his network of more than 640 Tire Pros loca- • CJ’s Automotive Services in Win-
“but in parts of that speech he sound- Feb. 5 State of the Union address. Representatives from the tire and tions in 45 states. chester, Tenn., owned by Curtis Jackson;
ed like a Democrat.” automotive service industries liked what he said. Jesse Wickel of Bowers Tire Pros in and
In the portion of the Feb. 5 speech, Mr. Trump described his tariffs would give him the authority to in- Burley, Idaho, said he and his father have • 301 Auto Repair in Mechanicsville,
Mr. Trump called for “a great re- on $250 billion of Chinese goods as stigate line-by-line tariffs on goods been farming Idaho’s Magic Valley for a Va., owned by Michael Lippa and family.
building of America’s crumbling a total success. imported from countries that he combined 60 years and “are bringing that Ron Sinclair, president of Tire Pros
infrastructure. “Now our Treasury is receiving determines have raised tariff or same family-oriented approach to the tire and senior vice president of retail strategy
“I know that Congress is eager to billions of dollars a month from a non-tariff barriers on U.S. goods. business.” and partnerships for ATD, said each new
pass an infrastructure bill — and I country that never gave us a dime,” “If another country places an un- Robert Landry of Service Tire and franchisee is committed to delivering the
am eager to work with you on legis- he said. Economists and trade groups fair tariff on an American product, Auto of Lake Charles in South Lake best customer service experience.
lation to deliver new and important point out, however, that U.S. con- we can charge them the exact same Charles, La., said he and his business part- “We couldn’t be more proud to add
infrastructure investment,” he said. sumers pay the tariffs, not foreign tariff on the same product that they ner have been serving his community for them to our growing network of franchi-
Mr. Trump described the former governments or enterprises. sell to us,” he said. two decades. sees, and we look forward to working with
North American Free Trade Agree- “I have great respect for (Chinese Mr. Trump said he was proud to “Our customers want simple, honest them to help their businesses flourish.”
ment (NAFTA) as a “catastrophe” President) Xi, and we are now working be the first president to include in his service and a dependable product with a Tire Pros said it expects continued
and said he had met working people on a new trade deal with China,” Mr. budget a plan for nationwide paid hassle-free guarantee,” he said. “That’s franchise growth in the months ahead.
in many states “whose dreams were Trump said. “But it must include real, family leave “so that every new par- what Tire Pros allows us to deliver, and Last year, Tire Pros unveiled a market-
shattered by NAFTA. structural change to end unfair trade ent has the chance to bond with their we’re fortunate to have a national network ing campaign that features an array of mar-
“Our new U.S.-Mexico-Can- practices, reduce our chronic trade newborn child.” of partners committed to our success.” keting assets and is based on two words:
ada Agreement — or USMCA — deficit and protect American jobs.” Anne Forristall Luke, president Other new franchise locations are: Hassle-free. Guaranteed. In addition, Tire
will replace NAFTA and deliver for As expected, Mr. Trump called and CEO of the U.S. Tire Manufac- • El Cajon Tire Pros in El Cajon, Calif., Pros rolled out the Tire Pros playbook —
American workers, bringing back on Congress to approve the United turers Association (USTMA), said owned by Nathan Clark and family; a manual that offers direction and policies
American jobs,” he said. States Reciprocal Trade Act, which See Industry, page 32 • Auto Doc Tire Pros in Greenville, on how to operate a Tire Pros facility.4 • February 18, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com
Goodyear ends 2018 with lower income NEWS IN BRIEF
AKRON — Goodyear suffered double-digit absorption, affected the results. Brazil and China.
decreases in segment operating income for Goodyear’s 2018 sales edged Goodyear’s net income for the Labor Secretary visits Conti site
both 2018 and the fourth quarter, reflect- up 1 percent to $15.5 billion, driv- year more than doubled to $693
ing higher raw material costs and weaker en by improvements in price/mix million as it included a net gain CLINTON, Miss. — U.S. Labor Secretary Alexander
results from other tire-related businesses, partially offset by unfavorable after-tax and minority interest Acosta recently visited the employee training cen-
among other factors. foreign currency translation. of $207 million resulting from ter established by Continental Tire the Americas in
Segment operating income for the year Goodyear reported tire unit vol- the TireHub transaction, net of Clinton.
fell 18 percent to $1.3 billion, compared with umes of 159.2 million, unchanged transaction costs. Goodyear’s net Mr. Acosta toured the center, which Conti opened in
2017. Goodyear said unfavorable foreign cur- from the prior year, while replacement tire income in 2017 included net charges after November 2018 to train em-
rency translation, which were partially offset shipments edged up 1 percent. Goodyear said minority interest of $292 million resulting ployees for its Clinton truck
by net cost savings and improved overhead growth in Europe was offset by weakness in See Goodyear, page 32 tire plant, which is under con-
struction nearby.
Icahn completes Michelin cites raw materials His visit coincided with the
announcement that the Oc-
costs for dip in ’18 earnings cupational Safety and Health
RPM Auto purchase PARIS — Group Michelin’s fiscal and related business unit, Michelin
Administration had signed
a “strategic partnership” with
Mississippi State Univer-
JACKSONVILLE, Fla. — Icahn Automotive Group L.L.C. has 2018 segment operating income said. sity’s Center for Continuing
completed its purchase of RPM Automotive Inc., a Jack- fell 1.2 percent on a slight increase Net sales rose 0.3 percent to near- Education Industrial Health & Acosta
sonville-based auto repair chain with 10 outlets operat- in sales as shifting currency ex- ly $26 billion. Michelin said sales at Safety Program and Brasfield
ing more than 100 service bays throughout northeastern change rates and rising raw materi- constant exchange rates would have & Gorrie L.L.C. to promote worker safety and health
Florida. als costs ate into potential earnings risen 4.1 percent. Unit sales volume at the Clinton plant.
The acquisition — announced originally in mid-De- gains. was up just 0.9 percent. Sales reve- The partnership seeks to prevent injuries and
cember — expands Icahn’s reach in the Jacksonville area, Segment operating income of nue in North America fell 2.9 per- exposure to hazards during the construction of the
where it already operates eight Pep Boys-branded retail $3.27 billion was driven primarily cent to $9.1 billion. 750,000-sq.-ft. facility.
stores. In all, there are more than 125 Pep Boys outlets by improvements in the company’s Commenting on the results, out- Continental plans to open the plant in January
in Florida. commercial and specialty tire busi- going CEO Jean-Dominique Senard 2020 with 400 employees and an initial capacity of
Icahn, which operates auto repair and maintenance nesses, which offset a double-digit said, “Michelin demonstrated its 750,000 truck and bus tires annually. By 2028, Conti
providers Pep Boys, AAMCO and Precision Tune Auto earnings decline in the automotive See Michelin , page 32 expects the facility to reach its full employment of
Care, said RPM Automotive will retain its name, its lead- 2,500.
ership team and ASE-certified technicians.
The first RPM Automotive location opened in 2000. Sumitomo suffers earnings slump Indy Tire buys Frank Anderson Tire
Seven of the outlets are in Jacksonville proper; the oth- KOBE, Japan — Sumitomo Rubber tory it acquired from Apollo Tyres
ers are in Fleming Island, Jacksonville Beach and St. Industries Ltd. (SRI) suffered dou- Ltd. in 2013. INDIANAPOLIS — Indy Tire Centers Inc., dba Best-
Johns. ble-digit drops in operating and Net income fell 22.8 percent to One of Indy, has acquired Frank Anderson Tire Co.
net income for fiscal 2018, declines $329.5 million. in Columbus, Ind.
Nokian boosts N.A. sales the company pinned on foreign-ex-
change losses and an impairment
For fiscal 2019, SRI is forecasting
a further erosion of earnings on a
Owner Frank Anderson, who is retiring, part-
nered with the Zurcher family to open the dealership
NOKIA, Finland — Nokian Tyres P.L.C.’s fiscal 2018 operating loss related to its South African sub- slight increase in sales. Specifically, in 1971, and it became a member of the Best-One
income edged up 1.9 percent to $439.2 million on 1.5-percent sidiary. the company sees operating income Tire & Service dealership network.
higher sales of $1.88 billion. Operating income for the Best-One of Indy also is a network member and
Both earnings and sales were impacted negatively by cur- period dropped 15.3 percent operates nine locations in the Indianapolis market.
rency valuation swings, Nokian said, and business slowed in to $519.6 million on 1.9-per- The dealership changed its stores’ signage from Indy
the fourth quarter, particularly in Central Europe. cent higher sales of $8.13 Tire Centers last March.
Net earnings jumped 33.3 percent to nearly $348 million billion.
from a 2017 figure that was impacted negatively by one- The results are in line with a fore- falling about 5.5 percent for the year, Tire Kingdom opens in Fla. Panhandle
time tax and interest charges. cast SRI published along with its with a second-half improvement
Looking forward, Nokian third-quarter earnings report, when offsetting to a large degree a nearly PANAMA CITY, Fla. — TBC Corp. has opened a Tire
management said it is stick- the company cited rising raw mate- 45-percent drop in the first half. Kingdom Service Center in Panama City, its first in
ing by its financial targets for rials and fixed costs, eroding prices Business profit for SRI’s tire busi- the Florida Panhandle.
2019–21 to grow faster than and an unfavorable price/mix com- ness fell 12.3 percent to $465.3 mil- The store, in a converted Mad Hatter Muffler &
the market, maintain healthy profitability (operating at or above ponent as key factors in adjusting lion on 1.5-percent higher sales reve- Auto Center location, has six service bays.
22 percent) and issue dividends above 50 percent of net earnings. the fourth quarter outlook. nue of $6.98 billion. The expansion opens a new territory for Tire King-
For the fiscal year, Nokian cited encouraging growth in SRI cited the “deterioration in OE sales in international markets dom, as the next closest Tire Kingdom stores are in
Russia and North America, which offset the negative impact the sales environment” in South improved, SRI said, due to expand- Tallahassee, Fla., 95 miles east of Panama City.
of lower car sales in Sweden and Norway. Revenue in North Africa for its decision to record an ed business in Europe, North Amer-
America grew 13.1 percent last year, to $228.8 million. impairment loss on goodwill relat- ica and emerging countries. Bandag on/off-road tread debuts
Nokian expects to double sales in North America by ed to its Sumitomo Rubber South Overall sales in North America
2023, to about $500 million, to coincide with the ramping Africa (Pty.) Ltd., where it added — comprising both tire and non- NASHVILLE, Tenn. — Bridgestone Americas Inc. has
up to full-scale capacity at its plant under construction in capacity for radial truck and bus tire businesses — fell 3.4 percent added an on-/off-road drive-axle tread design, the
Dayton, Tenn. tires last year at the Ladysmith fac- to $1.35 billion. BLSS, to its line of Bandag-brand precure tread rub-
ber products.
OBITUARY The Bandag BLSS tread is engineered for the
drive position with a tread compound designed to
Big O Tire co-founder Norm Affleck
resist cutting and chipping in order to increase tread
life while offering a powerful grip in severe service
applications, the company said.
Key features of the retread are:
DENVER — Norman L. “Norm” Affleck, Colorado and New Mexico. In 1962 he and O Tires unique. His own experience in • A full 32/32nd-inch tread depth to provide lon-
a founding member and first president of a group of other O.K. Rubber franchisees the tire business taught him that the best ger wear;
Big O Tires, died Feb. formed Big O Tire Dealers Inc. way to make money was to have an exclu- • A stone rejection technology for added durabil-
7. He was 95. He served as Big O president from 1962 sive product, program or service, and he ity; and
During his 22-year until his retirement in 1984. TBC Corp. ac- worked passionately on all of these,” said • A specialized compound to decrease chipping
tenure, he recruited many quired Big O in 1996. John Kairys, TBC general manager and and cutting in tough conditions.
dealers to build the Big O For three years he flew his own plane vice president. Bridgestone is offering the BLSS in seven sizes,
franchise network, helped around the country to meet with indepen- “He always had dealer success and prof- ranging from 200mm wide to 270mm wide.
Big O become a leader in dent dealers and sell the Big O Tires con- itability in his every thought — literally
retreading, developed a cept, according to TBC. talking about this until his last days.”
Volume 36, No. 23—Tire Business (ISSN 0746-9071) is published
unique warranty and in- In 1965 he developed and implemented After his retirement, Mr. Affleck con- biweekly except the last issue in December by Crain Communications
stituted the private brand the speed lane concept, creating a drive- tinued to contribute to the tire industry Inc. at 1725 Merriman Road, Suite 300, Akron, Ohio 44313. Periodi-
concept. Affleck through bay at his Denver store. through retreading and recycling efforts cals postage paid at Akron and additional mailing offices. Postmaster:
Send address changes to: Tire Business, Circulation Dept., 1155 Gra-
During World War II, “The result was an immediate improvement and consulting, according to TBC. tiot Ave., Detroit, Mich. 48207-2912.
Mr. Affleck flew B29 bombers for the U.S. in customer satisfaction and increased produc- He was inducted into the Big O Hall of
Subscription rates: U.S., $79—one year; $148—2 years; group rates
Air Force, participating in 32 missions. tivity and store profitability,” TBC said. Fame in 1993 and into the Tire Industry available. Surface delivery—to Canada, 1 year—$107 (includes GST);
When he returned to the U.S. in 1945, he He was instrumental in establishing the Association’s Tire Industry Hall of Fame to all other countries, $119 per year. Four weeks notice required for
started his career in the tire business as an Big O private tire brand, introduced in 1974. in 2007. change of address. Single copy—$4. Canadian Post International
Publications Mail Product (Canadian Distribution) Sales Agreement
O.K. Rubber Welder store owner. “Norm played a key role in develop- Mr. Affleck is survived by his wife Elva #40012850, GST #136760444. Canadian return address: 4960-2 Walk-
By 1960 he had six stores in southern ing many of the programs that make Big and daughter Kimberly Jo. er Road, Windsor, ON N9A6J3. Printed in U.S.A.F
APPROVED
RATED LINE OF TIRES
12 PLY CONSTRUCTION
CLX9 MUDBLAZER M/T
MUD-TERRAIN TIRE
PUNCTURE GUARD TOUGHNESS
SUPER STABLE SHOULDER
WETLAND OPTIMIZED GROOVES
CLX10 RANGEBLAZER A/T
ALL-TERRAIN TIRE
HIGH STABILITY TREAD CORNERS
ZIG-ZAG MIDDLE BLOCK
SPECIAL SHOULDER SHAPE
CLX12 ROGUEBLAZER R/T
Rough-Terrain Tire TOP-NOTCH PUNCTURE RESISTANCE AND
WEAR RESISTANCE
ELITE OFF ROAD PERFORMANCE
AGGRESSIVE PATTERN DESIGN
TERRIFIC WET HANDLING PERFORMANCE
HIGHER CARRYING CAPACITY
INFLATION PRESSURE
3121 NW 125 Street | Miami, FL 33167 | Phone: 305.621.5101 | LandsailTires.com Follow us @landsailtires |6 • February 18, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com
Opinion
Disruptions or not, tire industry rolls on Brennan Lafferty
V.P./group publisher
W
blafferty@crain.com • 313-446-6768
hile it is important to lose sight of that.” his recent talk to Goodyear dealers. tional sedans to open capacity for EDITORIAL STAFF
consider and understand So despite what some have He labeled them “inflection the more profitable and better-sell- 330-836-9180 FAX: 330-836-2831
all of the white noise predicted about transportation in points,” defined as a widespread ing light trucks, SUVs and CUVs. David E. Zielasko
V.P./publisher, Editorial director
surrounding today’s tire and auto- the future — Baby Boomers will change where some things never are “For 100 years, the car has been dzielasko@crain.com • 330-865-6131
motive service industries — partic- remember the fly- the same. It can the backbone of the auto industry ... Donald J. Detore
ularly all of the disruptions, or in- ing cars that were happen with a new sort of the symbol of the American Editor
ddetore@crain.com • 330-865-6126
flection points, so to speak, over the
past decade — there is one thought
expressed recently by Goodyear
so prevalent in the
1960s animated TV
show, The Jetsons
OUR VIEW product, a new tech-
nology, another busi-
ness model.
dream, probably for many of us in
this room who have their own first
car,” Mr. Kramer said. “Now those
Bruce Davis
Special projects reporter
bdavis@crain.com • 330-865-6145
Miles D. Moore
CEO, Chairman and President — the vehicles of today, tomor- Some inflection points, Mr. Kram- cars, those sedans are no longer go- Senior Washington reporter
mmoore@crain.com • 703-256-9275
Rich Kramer that perhaps everyone row and beyond will need tires, er maintained, aren’t apparent until ing to be in production.
Kathy McCarron
should remember. both as original equipment and they are. He cited the Great Reces- “That’s an inflection point, and Reporter
“All vehicles, owned or shared, replacement fitments. sion of 2008 as an example: The nothing in the car industry is ever kmccarron@crain.com • 330-865-6127
Michael McCrady
with a driver or autonomous, with That is not to say, however, that inflection didn’t occur when banks going to be the same,” he said. Art director/page designer
electric motor or gas combustion dealers should be ignoring the started going bankrupt, he main- As for the 2008 recession, the in- mmccrady@crain.com • 330-865-6148
engine, they all need tires now, and changes swirling in the industry. tained, but when the housing bubble flection point occurred with low in- INTERNET STAFF
they’re going to need them tomor- We’ve encouraged dealers repeat- burst earlier, among other factors. terest rates, the onset of sub-prime Erin Pustay Beaven
Online content editor
row,” Mr. Kramer told Goodyear edly to keep abreast of these disrup- He pointed out several inflection mortgages and the housing bubble. ebeaven@crain.com • 330-865-6106
dealers during the company’s re- tions and figure out what is best for points that are critical for dealers. Another inflection point, he said, Mark McCarron
Digital coordinator
cent Customer Conference. their businesses moving forward. Among them is the decision of is how vehicles are being used. The mmccarron@crain.com • 330-865-6123
Then he said this: “Our business Mr. Kramer laid out an array of the Big 3 Detroit auto makers to all success of ride-sharing services PRODUCTION/IT STAFF
is strong. Keep that in mind. Never disruptions in the industry during but discontinue production of tradi- could bring down the per-mile cost Scott Merryweather
of commuting to 50 cents or less, he Media services manager
smerryweather@crain.com • 330-865-6104
said, from $2 now.
Anthony DiPonio
Meanwhile, customers demand Chief information officer
more convenience, while upstart adiponio@crain.com • 313-446-1605
SALES STAFF
competitors look to reinvent the 330-836-9180 FAX: 330-836-1005
wheel ... or more specifically, the Patrick Cannon
tire and how it is designed. Group sales director
pcannon@crain.com • 313-916-1625
Those are disruptions tire dealers Christine Zernick
should react to accordingly, he said. Sales director
czernick@crain.com • 330-865-6108
The bottom line, though, he said,
Bruce Miller
is that tires are going to remain inte- Regional Sales manager
gral to a vehicle. “There is no substi- bmiller@crain.com • 313-373-6665
John Hickey
tution out there for a tire and a wheel. Sales manager
“Even if we’re at an inflection jhickey@crain.com • 260-437-8502
point today, our business is really Peter Bianchi
Sales manager
strong,” Mr. Kramer said, “... and it’s pbianchi@crain.com • 312-265-6484
going to be for a long, long time.” Brooke Stender
Classified sales representative
Good advice to heed as tire deal- bstender@crain.com •330-865-6117
ers navigate a changing tire and ser- Lori DiFrancesco
Sales and conference coordinator
vice world. ldifrancesco@crain.com • 330-865-6121
MARKETING & EVENTS STAFF
FORUM Sarah Arnold
Marketing & events manager
sarnold@crain.com • 330-865-6169
EVs will come with an economic cost
Sally Dietz
Assistant trade show manager
sdietz@crain.com • 330-865-6112
AUDIENCE DEVELOPMENT
By Keith Crain closure. And how would other busi- roads, bridges and other infrastructure. diesel with a more equitable funding Jennifer Mosley
Group director, Audience development
nesses along the routes — motels I suppose we could use a licensing mechanism so we can continue to enjoy
A
jmosley@crain.com • 312-649-5312
mid the euphoria surrounding and drive-through fast-food stores, setup not unlike the British have ad- the infrastructure that we have today. For new subscriptions or change
electric vehicles (EVs), I have for instance — be affected? opted to support their noncommer- Most EV fans likely will be un- of address write to:
Circulation Department, Tire Business
wondered Certainly, we’d have lots of business- cial TV system — consumers buy a happy about losing the tax subsidy 1155 Gratiot Ave.
what would hap- es that not only would offer charging license that allows them to install or attached to the purchase of the ve- Detroit, Mich. 48207-2912
pen to the huge stations but many other amenities for use TV receiving equipment. hicles. or call 877-320-1716 (U.S. and
Canada only) or 313-446-0450.
economic struc- EV users. Already, many states, including ones I also expect them to be unhap- FAX: 313-446-6777
ture that has been But would we also have to convert that have zero-emission vehicle mandates, py when they face heftier payments email: customerservice-tb@crain.com
built around our our highways to pay-as-you-go toll are recognizing this gap and imposing every year to support the highway For single copy sales:
email: singlecopysales@crain.com
interstate highway roads? higher annual registration fees and sur- system. Reprints:
system if EVs Without the enormous amount of charges on EVs and hybrids in lieu of gas- Lauren Melesio
grow in popularity. tax revenue collected on the sale of oline taxes. But there’s still nothing similar Mr. Crain is chairman of Crain lmelesio@crain.com • 212-210-0707
Thousands of gasoline, we’d have to come up with in place at the federal level. Communications Inc., parent company EXECUTIVE OFFICES
Crain of Tire Business, and is editor-in-chief
gasoline stations another system to raise the billions of At some point, policymakers will 1725 Merriman Road, Suite 300,
that dot our highways could face dollars needed to build and maintain have to replace the tax on gasoline and of Detroit-based Automotive News. Akron, Ohio 44313-5283
330-836-9180
FAX: 330-836-2831
Letters to the Editor CRAIN COMMUNICATIONS INC
Tire Business encourages letters to the edi-
Keith E. Crain Mary Kay Crain
tor on any subject of interest to independent Chairman Vice chairman
tire dealers. Send a letter to: Editor, Tire
KC Crain Chris Crain
Business, 1725 Merriman Road, Suite 300, President Senior executive vice
Akron, Ohio 44313-5283. Letters also can be president
Lexie Crain
emailed to tirebusiness@crain.com. Armstrong Robert Recchia
Letters must be signed and may be edited Secretary Chief financial officer
for length and clarity. Please include a day- G.D. Crain Jr. Gertrude R. Crain
time phone number for verification purposes. Founder (1885-1973) Chairman (1911-1996)
Letters also may be published on TB’s web-
site: www.tirebusiness.com.Visit us on the web at www.tirebusiness.com TIRE BUSINESS, February 18, 2019 • 7
AUTOMOTIVE SERVICE
Taking a look at practical uses of silicone paste
By Dan Marinucci
The silicone paste protects an electrical
S connection by coating its terminals,
ilicone paste helps electrical
connections withstand the el-
ements, thereby minimizing filling the tiny voids or air gaps
the risk of weather-related electrical
comebacks. between those terminals.
Silicone paste, also known as di-
electric grease, has applications on that connector with silicone paste so battery case. Then I connected the
components such as brake parts, sus- that road splash can’t contaminate battery cable to the terminal.
pension bushings, spark plug boots and corrode its terminals again. I have experimented with dielectric
and ignition terminals. But service Later, firsthand checks of this grease inside countless battery termi-
Tire Business photo by Dan Marinucci
personnel may underestimate its val- car confirmed that this connection nals. When I disconnected the battery
ue on basic electrical connections. delivered trouble-free service for cables five years later — during bat-
I began using silicone paste on years afterward — despite the miss- tery replacement — the battery ter-
various electrical connections back ing or damaged connector seal. minals were still shiny and clean.
in 1977. I happened to interview an Last but not least, the silicone Don’t overlook silicone paste’s val-
engineer who described its ability to paste has performed beautifully in- ue to electrical connections.
3M photos
protect terminals from rain, snow, side common battery terminals.
road splash, road salt, humidity and I have cleaned the terminals and Dan can be reached via e-mail
battery fumes. applied a film of dielectric grease at tirebusiness@crain.com. His One popular example of silicone
to the battery post or side-terminal previous columns are available at paste is 3M’s No. 08946, which
mounting “pad” on the side of the www.tirebusiness.com. comes in a brush-top container.
Dan Marinucci
is a freelance
automotive
service writer
and former
editor of two
automotive
service
magazines. PROGRAMMABLE UNIVERSAL TPMS
COMBINE BOTH FREQUENCIES
What’s more,
silicone paste
won’t liquefy or melt in a hot engine
compartment.
Among the locations where I have
tried silicone paste are battery termi-
nals, firewall harness connectors, var-
ious lighting connectors and trailer
harness terminals — not to mention
computer, sensor and actuator con-
nectors.
The engineer said the paste would
not restrict the flow of electricity
through a healthy electrical connec-
tion. Numerous times I have tested
electrical connections before and after
treating the terminals with the paste.
Indeed, I have never measured any
increase in the voltage drop across an
electrical connection after treating
its terminals.
The silicone paste protects an
electrical connection by coating its OE QUALITY SENSOR
terminals, filling the tiny voids or air
gaps between those terminals. To be
fair, experience has shown that many
electrical connectors withstand years COMBINE BOTH FREQUENCIES
of exposure to all the elements.
But suppose a technician has to
unplug that connection during a re-
99% VEHICLE
COVERAGE
pair. Applying a film of silicone paste RUBBE R / ALUMINUM
to the connector’s terminals and its
internal, protective seal does two
things. MEMBER
®
First, it eases the task of snapping
the two halves of that connector back
together without disturbing or dam-
aging this vital seal.
C O M P L E T E S O L U T I O N
Second, the paste provides addi- ONLY PRODUCES TPMS TOOLS & SENSORS
tional weather protection by filling MORE COMPATIBLE & E ASY TO USE • MOST CURRENT VEHICLE COVER AGE
those air gaps within the terminals N L OA
TS508 TS608
OW D
and imperfections in the connec-
D
FREE WIRELESS
MA XIVCI MINI
tor’s protective seal. For The Life Of The Tool
Sometimes carelessness causes ADVANCED TPMS SERVICE & TPMS
corroded terminals inside an electri- FT
WA
RE UPD
AT
• Read & Relearn All Known Sensors FREE
SO
ES
• Includes 20+ Service Functions
cal connection: A discarded, cracked FOREVER
• 4 MX-Sensor Programming Methods • AutoSCAN All Vehicle Systems
or misshapen connector seal has al-
• Exclusive TPMS Status Screen • 4 MX-Sensor Programming Methods
lowed road splash to penetrate the
• Tire Pressure Placard Value Reset • Enhanced TPMS Status Screen
connector and its terminals.
In many cases, I have cleaned
these terminals with the appropriate Phone: (855) 288-3587 • USSUPPORT@AUTEL.COM Follow Us @AutelTools
chemical. Then I have carefully filled AUTEL.COM • MAXITPMS.COM • MAXISYSADAS.COM
© 2019 Autel Intelligent Technology Corp., Ltd., All Rights Reserved8 • February 18, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com
AUTOMOTIVE SERVICE
Car Care Council extends consumer VSG adds drive-over tread scanner
education effort to Canada, Mexico to auto service equipment portfolio
BETHESDA, Md. — The Auto Care Association y Increasing the number of service and repair MADISON, Ind . — Vehicle Service Group’s mensions and diagrams. Technicians or ser-
(ACA)’s Car Care Council has created the Car businesses throughout North America participat- (VSG) Rotary business is adding a drive-over vice advisers then can analyze the data and
Care Council North America (CCCNA) to expand ing in the “Be Car Care Aware” consumer educa- tread-scanning device, the TreadScan 2700, to make recommendations to the customer.
its “Be Car Care Aware” consumer education tion campaign by providing them access to com- its growing portfolio of auto service equipment. Rotary is offering two versions of the new
campaign beyond the U.S. to Canada and Mexico. munications materials, marketing tools and other The new product produces a laser-generat- device. The base model includes a robust
The CCCNA involves the Automotive Industries helpful resources. ed scan of the customer’s tire tread profiles drive-over tread scanner and a mobile cabi-
Association of Canada (AIA Canada) and the Aso- y Substantially increasing the number of con- instantly, providing the shop’s technicians net with computer and printer. The scanner is
ciación Nacional de Representantes, Importadores sumers reached with information about proper ve- with a visual image to show customers the constructed of galvanized steel for durabil-
y Distribuidores de Refacciones y Accesorios para hicle care and maintenance on behalf of the three condition of their tires and to recommend tire ity and reduced maintenance. It has adjust-
Automóviles, A.C. (ARIDRA) in Mexico. associations’ respective members and industries replacement and/or alignment if warranted. able ramps to accommodate any car or light
“Car Care Council North America builds on the as a whole. “Many people are driving around on tires truck weighing up to 16,000 pounds and can
positive reputation and image of the current Car “As everyone working in the global auto care that need to be replaced without be installed in any bay, either
Care Council that has been funded and directed by industry knows, proper vehicle maintenance is a realizing it,” according to Jeff mounted to the floor or recessed
the Auto Care Association for nearly 20 years as a universal issue and a challenge that has no bor- Vervoort, national sales man- per shop preference.
credible source of information about the benefits ders,” ACA President and CEO Bill Hanvey said. ager of wheel service equip- TreadScan 2700 also can be
of vehicle maintenance, care and repair,” Car Care “Expanding the Car Care Council initiatives in ment for VSG. integrated with Rotary align-
Council Executive Director Rich White said. Canada and Mexico is a logical next step in ed- “Uneven tire tread can in- ment equipment, VSG said.
The key goals of CCCNA include: ucating consumers about the benefits of regular dicate the need for new tires, a In this configuration, the tread
y Structuring CCCNA to ensure a level of au- vehicle upkeep.” wheel alignment or suspension scanner is installed in front of
tonomy to accommodate country-specific cultural, ARIDRA President Alejandro Calderón added: analysis. Our new TreadScan the alignment rack so that every
language and other unique needs for each of the U.S., “The creation of the expanded council seeks the 2700 helps shops keep their car drives over it on the way to
Canada and Mexico organizations, while centraliz- unification of services in the United States, Canada customers safe by checking the condition of the rack. The software can be installed in the
ing the organization under the umbrella of the U.S. and Mexico, to ensure that vehicles have preven- their tires in just a few seconds, and quickly computer used for alignments, cost-effective-
Car Care Council to leverage economies of scale. tive and not corrective maintenance. We intend to pays for itself through increased sales of tires, ly eliminating the need for another computer,
y Creating an advisory group with repre- create consumer awareness to keep the vehicles in alignment and suspension work.” printer and cabinet.
sentatives from each association to help guide optimal condition.” As vehicles drive over the reader, a built- Known in the past predominantly for its ve-
CCCNA to ensure that the needs of their respec- AIA Canada President Jean-François Cham- in laser measures the tread on each tire and a hicle lifts, Rotary branched into wheel service
tive members, motoring public and industries are pagne said: “The North American automotive af- camera photographs them. The data and photos equipment, including tire changers, wheel
being met. termarket industry is more connected than ever be- are transmitted to the computer and a tread report balancers and alignment equipment, in 2017.
yy Launching a central web portal where con- fore. Establishing the CCCNA as an organization is generated, which can be printed to review with This product-range extension coincided with
sumers, industry professionals and the media can that reaches across borders to provide extensive the customer as well as stored for future reference. VSG’s acquisition of Ravaglioli S.p.A. Group,
locate and download car care content in English, consumer education on vehicle care and mainte- The document includes a detailed analysis an Italy-based automotive service equipment
Spanish and French from each of the U.S., Canada nance in all three countries together is a clear re- of the tire tread, including measurements, di- and vehicle lift manufacturer, in 2016.
and Mexico websites. flection of that interconnectivity.”Kick your
Reduc t
the w e
by 80
i
e
gh
%
Load
capac
ity
275 lb
s truck service
into high gear.
We know
efficiency.
IMPACT BOOM TRUCK WHEEL DOLLY
450 119
The new Mobile Impact Wrench Undeniably a must have. Increase
support will assist every move you your productivity when changing
make. Your 35 lbs impact wrench will heavy truck tire/wheel. Equipped
feel like 5lbs! - no more back pain or with 2 rollers, you will be able to
injuries due to lifting and torquing. rotate the wheel and position the
Simple, Small & Affordable. rim on the hub with ease.
MMIWSS MSTWDWelcome to the future
of tire inflating.
INFLATION PIT TRUCK TIRE
STOP – 4 BARS* FOLDING RACK
1264 395
Your one stop station Modular, durable,
for seating and inflating can stack up to 4
truck and bus tires - no high. The
more seating on the foldable frame
ground. The adjustable will hold 8 TBR
barrel aims perfectly tires on tread
between the rim and MTFR
the tire for a quick
seating.
MIC-4-IPS
SEATING AND 6-BARS HD TIRE
THE PERFECT FIT INFLATING INFLATION CAGE
INFLATION PIT STOP
Compatible with the existing
MIC-4 and the new MIC-6HD
TRUCK STATION*
Patent pending 1995
895
6 BARS HD* Extremely sturdy and
safe. Equipped with a
2890 You already have a door safety locking
Set the pressure you want, Martins Orange 4 bar system. The laser cut
seat and inflate your tire at cage? Seating and air deflection system
the push of a button – inflating will never be makes it the safest on
you’ll never look back. easier. We guarantee the market. Optional
Equipped with a door your operations to be Automatic Inflation
safety locking system and efficient, easy and safe and Seating systems
a laser cut air deflection only at the push of a can be mounted
system makes it the safest button. Just add it to directly on the cage.
on the market. your existing cage. MIC-6HD
MIC-6HD-IPS Tire roller Wheel centering plate
MSITTS
*Includes inflation/seating system, roller & centering bracket
Did you know Martins has more than 20 models of safety inflation cages,
including the largest inflation cages in the world... We are the specialists.ENLIGHTEN YOUR ORGANIZATION The easiest and most cost-effective way for companies to gain unlimited access to Tire Business is through a corporate subscription for 10+ users. With a corporate subscription, you and your organization will have access to the news and analysis you need to make informed business decisions at a discounted rate. GET STARTED TODAY! www.tirebusiness.com/corporatesubscontact
10 • February 18, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com
New England East South Central
Connecticut, Alabama
Maine Kentucky
Passenger 4% Massachusetts Passenger 6% Mississippi
Tennessee
Light Truck 3% New Hampshire Light Truck 6%
41% 42% Rhode Island
Vermont
West North Central
Iowa
Kansas
Middle Atlantic Passenger 7% Minnesota
Pennsylvania Missouri
Passenger 10% New Jersey Light Truck 9% Nebraska
National National Light Truck 8% New York North Dakota
dealerships3 General dealerships3 General South Dakota
South Atlantic
merchandise 30 merchandise 30 West Virginia West South Central
distributors4 distributors4 Delaware Arkansas
Regional Passenger 24% Maryland Passenger 13% Louisiana
dealerships2 Washington D.C.
Regional 13%
Tire makers’ Tire makers’ Light Truck 17% Virginia Light Truck 19% Oklahoma
Texas
dealerships2 outlets5 outlets5 North Carolina
South Carolina
Mountain
12% 20 18% 20 Georgia
Arizona
11% Florida
12% East North Central
Colorado
Idaho
Local Local 2% Illinois
Passenger 5% Montana
dealerships1 dealerships1 23% Passenger 16% Indiana Light Truck 9% Nevada
New Mexico
14% 7%
Others6 Others6
Light Truck 12%
Michigan
10 4% 10
Ohio
Wisconsin
Utah
Wyoming
/RFDOGHDOHUVKLSV Independents with fewer than 10 outlets
*HQHUDOPHUFKDQGLVHGLVWULEXWRUV Mass merchandisers, Pacific
Alaska
in a single regional distribution area. wholesale clubs, etc. California
5HJLRQDOGHDOHUVKLSV Independents with 10 to 40 outlets in Passenger 15%
7LUHPDNHUV·RXWOHWV Those operated by the manufacturers Hawaii
at least two regions. using various names and store formats. Light Truck 18% Oregon
Washington
1DWLRQDOGHDOHUVKLSV Independents with more than 40
2WKHUV Service stations, garages, car dealerships, etc. *Percentage may not add to 100% due to rounding.
outlets in three or more regions. Source: U.S. Tire Manufacturers Association’s preliminary 2018 data.
Source: U.S. Tire Manufacturers Association’s preliminary 2018 data. *Percentages may not add to 100% due to rounding. TIRE BUSINESSgraphics by Michael McCrady
Top North American Retailers
(2017 retail sales of tires & related automotive services)
Sales No. of outlets 80
Company / Chain ($ millions) (year-end 2018) 78%
Discount Tire/America’s Tire 1
$4,840 1,020 70
70%
Bridgestone Americas2 $4,500* 2,222 60
TBC Corp.3 $3,000* 731
Walmart Inc.4 $2,960* 3,200+
50
Icahn Automotive / Pep Boys5 $2,670* 1,022
Les Schwab Tire Centers $1,573 421
Monro Inc.6 $1,128 1,184 40
Quick Lane Tire & Auto Centers7 $900* 868
Costco Wholesale Corp.8 $855* 528 30
Big O Tires network3 $800* 430+
Sears Holdings Corp.9 $800* 200 20
Mavis Discount10 $775* 649
Midas International3 $750* 971
11% 10
Canadian Tire Corp.# $630* 501 10% 9% 8%
Goodyear11,12 $600* 569 6% 7%
Point S Tire & Auto13 $550* 400+ 0
4 Wheel Parts $545* 84 Passenger tire market 2018 Light truck tire market
Kal Tire# $475* 209 Associate (house) brands Private brands Import brands* Manufacturers’ flag brands†
Belle Tire Distributors $350 100
Based on data from U.S. Tire Manufacturers Association; U.S. Dept. of Commerce; etc.
Fountain Tire Corp.12 # $230 160 *Flag brands of offshore firms with no U.S. manufacturing presence. †Companies with U.S. manufacturing base. TIRE BUSINESSgraphics by Michael McCrady
Best One Tire & Service $200 117
Sullivan Tire Co. $150 71
Dunlap & Kyle Co. Inc. $140 54 Miles traveled - 2018*
A.T.V. Inc. $128 113 U.S. total 3.22 trillion
Rent-a-Wheel / Rent-A-Tire $120 124
Dobbs Tire & Auto Centers $110* 40 Car ownership costs per mile1 Car maintenance costs per mile1 Operating cost/mile3
(based on 15,000 miles per year) (based on 15,000 miles per year)
Graham Tire Co. $76 35
2018 .................... 59.0 cents 20182 ...................... 8.2 cents Small sedan ......... 15.26 cents
* estimated # sales translated from Canadian $ 2017 .................... 56.5 cents 20172 ...................... 7.9 cents Medium sedan ....... 17.76 cents
1 — Discount Tire’s sales include revenue from Discounttire.com
2 — Estimated sales for Firestone Complete Car Care, Tires Plus and Wheel Works. 2016 ............................... 57.0 cents 2016 ...................... 5.3 cents Large sedan .......... 20.99 cents
Bridgestone also operates 200+ GCR and TDS stores in the U.S. and 39 GCR stores in Canada that primarily are commercial,
but which also do a measurable amount of retail/consumer business. 2015 .................... 58.0 cents 2015 ...................... 5.1 cents Minivan................ 20.10 cents
3 — Collective sales estimate for TBC’s National Tire & Battery, Merchant’s Tire and Tire Kingdom stores;
TBC also franchises 440+ Big O Tires outlets in the U.S. and 35 in Canada, and 970+ Midas Intl. outlets in the U.S. 2014 .................... 59.2 cents 2014 ...................... 5.1 cents Small SUV ............ 17.57 cents
4 — Estimated tire and auto service sales for Walmart and Sam’s Club locations in the U.S and Canada
5 — Represents ‘service center’ revenue, which includes tires and automotive service; excludes $1.22 billion in retail’ sales of
2013 .................... 60.8 cents 2013 ...................... 5.0 cents Medium SUV.......... 21.09 cents
automotive parts to do-it-yourself customers 2012 .................... 59.6 cents 2012 ...................... 4.2 cents 1/2 Ton Pickup ....... 23.18 cents
6 — Total corporate sales; tires represent 49% and auto maintenance/brakes/undecar 51%
7 — Collective sales figure for Quick Lane network in the U.S. and Canada; stores are independently owned by Ford/Lincoln dealers 2010 .................... 56.6 cents 2010 ...................... 4.5 cents Hybrid ................. 13.19 cents
8 — No. of Costco outlets with tire service; includes Puerto Rico
9 — Sears is closing 34 more stores in Q1 2019 2005 .................... 56.1 cents 2005 ...................... 5.3 cents EV ...................... 11.28 cents
10 — Proforma sales data for Mavis, which acqured Kauffman Tire’s retail business -- 69 stores/$114M in sales -- in January
2018 and Express Oil Change/Tire Engineers --- 480 stores/--- in February 2018 2000 .................... 49.1 cents 2000 ...................... 3.6 cents Average ............... 19.26 cents
11 — Estimated sales for Goodyear’s U.S. retail network, including Just Tires
12 — Goodyear is 50% owner of Fountain Tire
1995 .................... 41.2 cents 1995 ...................... 2.6 cents 3 - AAA data; maintentance, repair, tires & fuel
13 — Estimated collective sales for the 200+ Point S outlets in the U.S. and 200+ in Canada 1 2
* U.S. Department of Transportation American Automobile Association Maintenance, repair and tires TIRE BUSINESSgraphics by Michael McCradyYou can also read