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February 18, 2019      THE TIRE DEALER’S NEWSPAPER SINCE 1983   $79 per year, $4 per copy

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VikingContact 7 COMING FALL 2019 - THE TIRE DEALER'S NEWSPAPER SINCE 1983 - Tire Business
©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.
VikingContact 7 COMING FALL 2019 - THE TIRE DEALER'S NEWSPAPER SINCE 1983 - Tire Business
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VikingContact 7 COMING FALL 2019 - THE TIRE DEALER'S NEWSPAPER SINCE 1983 - Tire Business
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.
VikingContact 7 COMING FALL 2019 - THE TIRE DEALER'S NEWSPAPER SINCE 1983 - Tire Business
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.
VikingContact 7 COMING FALL 2019 - THE TIRE DEALER'S NEWSPAPER SINCE 1983 - Tire Business
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 |
VikingContact 7 COMING FALL 2019 - THE TIRE DEALER'S NEWSPAPER SINCE 1983 - Tire Business
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.
VikingContact 7 COMING FALL 2019 - THE TIRE DEALER'S NEWSPAPER SINCE 1983 - Tire Business
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

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or misshapen connector seal has al-
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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 Reserved
VikingContact 7 COMING FALL 2019 - THE TIRE DEALER'S NEWSPAPER SINCE 1983 - Tire Business
8 • 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
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                                          Load
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The new Mobile Impact Wrench                 Undeniably a must have. Increase
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                                                                                                   INFLATION PIT               TRUCK TIRE
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                                                                                                   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
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                                                                                                   SEATING AND                                     6-BARS HD TIRE
                                                             THE PERFECT FIT                       INFLATING                                       INFLATION CAGE

INFLATION PIT STOP
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                                                                                                                                                   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
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 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.
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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 McCrady
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