modern tire dealer december 2011
DESCRIPTION
Magazine for the professional tire industryTRANSCRIPT
THE INDUSTRY’S LEADING PUBLICATION
DECEMBER 2011 • VOL. 92, NO. 12 • TEN DOLLARS • A BOBIT PUBLICATION
Farm tires: a bountiful yearDemand is high, but genetically enhanced crops remain a challenge
SEMA Show and Global Tire Expo break attendance records How to overcome the biggest obstacle to your success Tire Dealer of the Year honor humbles Nick Mitsos
www.moderntiredealer.com
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Modern Tire Dealer is a proud member of:
Cover feature
18 Broken records More people att ended the 2011 SEMA Show and
Global Tire Expo than ever before. For those of you who didn’t, here’s the capsulized version, courtesy of MTD
Commercial Tire Dealer™29 Farm tires: a
bountiful year While demand keeps everyone happy,
tougher crops challenge manufacturers to come up with more durable tires
34 Double Coin doubles upTh e FT125 Super Wide replaces dual tires on the trailer axle
36 Commercially Viable
4 EditorialA time of heartfelt refl ection: We will miss friends like Ed Wagner and Jerry White
6 OnlineTraffi c report: Top 10 articles on our website
8 News/views‘Honored and humbled’: Tire Dealer of the Year Nick Mitsos thanks everyone for his success
16 Ludwig ReportTire prices to remain fi rm for the next several months
28 Focus on dealersITDG, point S enter master franchise agreement
38 Business insightYour own growth trap: How to overcome the greatest obstacle to your dealership’s success — yourself
40 Business insightTurning training into trophies — SalesMinded dealers make the ‘big transfer’
41 Focus on industryPart of the Grand Design: Yokohama focuses on the environment and plant capacity
42 TPMSReplace tire valve cores on the Volkswagen Eos: Adjust air in all tires before resetting the TPMS
50 Your turn‘High tire prices are causing harm to many who can least afford it’
44 Products46 Quik-Link47 Classifi ed
Departments
Th e Industry’s Leading PublicationDecember 2011, Volume 92, Number 12
Season’s Greetings from the staff of Modern Tire Dealer
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MTD December 2011
“Th e fear of death follows fr om the fear of life. A man
who lives fully is prepared to die at any time.”
Mark Twain
A s another year comes to an end, it seems only natural to re-
flect on the last 12 months. Reflection on past mistakes, like constructive criticism, is always good, in my opinion. At the very least, it allows past mistakes to become life lessons.
New Year’s resolutions are a direct result of refl ecting on past behavior. Maybe you won’t keep them, but they help keep you on the path to self-improvement.
Sometimes the death of a friend or loved one forces you to refl ect. Initially, the sorrow is diffi cult to overcome. Over time, however, the good memories tend to outweigh the sadness.
The death of Ed Wagner, former managing director of the American Retreaders Association (ARA ), a few months back aft er a 26-year fi ght with myasthenia gravis hit a lot of us hard. It offi cially marked the end of an era, because he was still representing the industry with professionalism and loyalty well into the last decade.
Back in the 1960s and 1970s, he was one of several strong personalities who worked in the public eye and behind the scenes to make our industry associations strong. Phil Friedlander, former executive vice president of the National Tire Dealers and Retreaders Association, and the late Bernie Kovach, publisher of Modern Tire Dealer, also come to mind.
Th ese “Mad Men” got things done, and were 100% behind independent tire dealers and retreaders. But as they always do, times change.
Th e ARA is no more. It morphed into the International Tire & Rubber Association, and then merged with the Tire Association of North America to form what is now the Tire Industry Association.
Financial diffi culties followed. Th e role of tire manufactur-ers and suppliers in association policy expanded as well.
None of this is necessarily good or bad. It’s just how associations and businesses evolve as times change.
You might think the passing of such an exciting, and some would say more prosperous, era in our industry
would contradict my “refl ection is always good” theory. It does not. Refl ection is really about people. Th eir legacies live on. Th at is why thinking of friends like Ed at times like these makes me smile. His wife, Martha, takes such refl ection to heart.
“We have such wonderful memories!” wrote Martha thanking me for my condolences. “God is good! Ed was gift ed almost 26 more years of life than he should have had — the doctor called them ‘miracle years.’”
She also thanked me for being part of their lives. Wow. Kind of puts things in perspective, doesn’t it?
I am also reminded of Jerry White’s death late last year. Th e founder and chairman emeritus of White Tire Supply in Beaumont, Texas, died shortly aft er being inducted into the Tire Industry Hall of Fame. (Wagner, too, is a hall of famer.)
Jerry’s wife, Norma, who was as much a fi xture at the SEMA Show as he was, died unexpectedly only a month ago.
Like Ed, Jerry helped out MTD from time to time, either with a helpful article or a lett er to the editor. Jerry played
a key role in our story on “Consumer Reports” four years ago. He was a part of a spirited forum that helped the consumer magazine’s engineers understand the independent tire dealer point of view when it came to testing and selling tires.
Gene Petersen, program leader and tire test engineer at the “Consumer Reports” automotive test center, was part of the forum.
“Our day-long meeting must have left a positive impression, because from
that point forward, Jerry would call routinely sharing his thoughts on tire technology and consumer perspectives on buying tires,” he wrote on the “CR” website follow-ing White’s death. “He admitt ed consumers were oft en confused with the many tire categories, sizes, specifi cations, and marketing hype.”
Petersen credited Jerry with helping the consumer understand the dangers of shortchanging a car with the wrong tires.
“He used his wealth of tire knowledge to be sure that the customer always got the best deal and the right tire for the car at a fair price,” he wrote. “We need more people like Jerry. I will miss his calls.”
I will, too. I also will miss talking with Norma. And Ed. But I will always think of them fondly. And I think it’s about time I gave Martha a call. ■
If you have any questions or comments, please e-mail me at [email protected].
A time of heartfelt refl ection We will miss friends like Ed Wagner and Jerry White
Editorial
By Bob Ulrich
Th e death of Ed Wagner
offi cially marked the
end of an era.
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MTD December 2011
Online
3515 Massillon Road, Suite 350Uniontown, Ohio 44685(330) 899-2200, fax (330) 899-2209 Web site htt p://www.moderntiredealer.com
Editor: ROBERT J. ULRICH [email protected] Managing Editor: LORI L. MAVRIGIAN [email protected] Editor: BOB [email protected]
Contributors: Auto Service/Technical: MIKE MAVRIGIANTraining/Tire Service: KEVIN ROHLWINGIndustry Analyst: SAUL LUDWIG
Art Director: NEAL WEINGART [email protected] Production Manager: KA REN [email protected]
Publisher: GREG SMITH [email protected]
South and Texas: GREG SMITH [email protected](330) 899-2200, fax (330) 899-2209
Midwest: MICHELE VARGO [email protected](330) 899-2200, fax (330) 899-2209
West Coast: JOHN DYAL Th e Dyal [email protected] (760) 451-5026, fax (760) 451-5039
West Coast: MARIANNE DYAL Th e Dyal [email protected](760) 451-9216, fax (760) 451-9292
Automotive Aft ermarket: DAN [email protected](734) 676-9135, mobile (313) 410-0945fax (734) 675-6744
Classifi ed Sales: DONNA STEWART [email protected](405) 513-6794, fax (360) 406-7576
Reprint Sales: KA REN RUNION [email protected](330) 899-2200, fax (330) 899-2209
Customer/Subscription Service: (888) 239-2455, fax (888) 274-4580
Modern Tire Dealer is a Bobit PublicationExecutive offi ces: 3520 Challenger St. Torrance, CA 90503Chairman: Edward J. BobitCEO & President: Ty F. BobitChief Financial Offi cer: Richard E. Johnson
Traffi c reportTop 10 articles on our website
Light truck tires, going green, ultra-high performance tires, tire pressure monitoring systems and retreading. Over the past year, readers of Modern Tire Dealer’s website showed interest in a broad spectrum of subjects.
Extremely well-read were articles in our 2010 SEMA Show coverage, in-cluding “Tires, tires, tires,” “A univer-sal TPMS sensor?” and “Top-end tires from China.” (We hope you equally enjoy our news from this year’s show, which starts on page 18 in this issue and also can be found on our website.)
Coming on strong in reader popular-ity is our story on the 2011 Tire Dealer of the Year Nick Mitsos titled “Every-body say, ‘WOW’” from our September issue, and “Tire Kingdom vs. Discount Tire,” the lead article in our Modern Tire Dealer 100 coverage from our July 2011 issue.
Here are the top 10 most-read articles from last December through November 2011 on www.moderntiredealer.com:
1. Good, better, best is dead (December 2010)2. Yee haw for LT and SUV tires (March 2011)3. Low rollers, high road – “green” tires (May 2011)4. Taking the green initiative (May 2011)5. Smiley’s Tires, Tunes & Tints (March 2011)6. From cosmetic to tuner to... UHP? (February 2011)7. Heavy-duty LT tires (June 2011)8. A case for casings (April 2011)8. Breaking down light truck tire sizing (March 2011)10. Always looking ahead – Saul Ludwig interview (January 2011)
Check out these features and more by clicking the Articles button on the top bar on our home page. Click down to Feature Stories, and you can scroll through the articles or enter a search by date or keyword. ■
Check out past articles on our website, including our in-depth interview of our 2011 Tire Dealer of the Year Nick Mitsos of Mountain View Tire and Service Inc. in Rancho Cucamonga, Calif.
Total access — totally freewww.moderntiredealer.com
MODERN TIRE DEALER (ISSN 00268496) (CDN IPM #40013413) (USPS #369-170) is published monthly by Bobit Business Media, 3520 Challenger St., Torrance, California 90503-1640. Periodicals postage paid at Torrance, CA 90503-9998 and additional mailing offi ces. POSTMASTER: Send address changes to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks for address changes to take effect. Subscriptions in the U.S. and its possessions, $65; Canadian, $99; Int’l surface mail, $99; Int’l airmail, $198. Single copies, $10, except the January Facts Issue, $30. Address all subscription correspondence to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks to receive your fi rst issue. Please address Editorial and Advertising correspondence to MODERN TIRE DEALER, 3515 Massillon Road, Suite 350, Uniontown, OH 44685-6217. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. For your information: We sometimes make our subscriber information (i.e. fax, e-mail or mailing address) available to carefully screened organizations whose products and services may be of interest to you. If you prefer not to have your information made available, please write MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068.
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MTD December 2011
Being named the 19th Tire Dealer of the Year by Modern Tire Dealer earlier this year caught Nick Mitsos off guard. Th at’s rare for the CEO and president of Mountain View
Tire & Service Inc., a 29-store chain based in Southern Calif.“Upon being notifi ed about the nomination for Tire
Dealer of the Year I was stunned. Th en, as I gathered my thoughts, a great big smile went across my face,” he says. “What made it even more special was that my son, Chris, called to tell me about the nomination, and you could hear the excitement in his voice.”
A reception was held in his honor at the Embassy Suites hotel in Ontario, Calif., in late October. In recognition
of the achievement, Modern Tire Dealer Publisher Greg Smith was on hand to give a $5,500 check in Mitsos’ name
to St. Anthony’s Greek Orthodox Church. Th e donation was on behalf of MTD and the suppliers that ran congratulatory ads in the September 2011 issue featuring Mitsos. ■
News/views
‘Honored and humbled’Tire Dealer of the Year Nick Mitsos thanks everyone for his success
As the 19th Tire Dealer of the Year, Mitsos received a portrait from MTD Publisher Greg Smith (left). (Photo by Michele Mitsos.)
“I am honored and humbled by this award and want to thank all my family, friends and all those business associates who do business with us,” said Mountain View Tire CEO Nick Mitsos. “If it were not for the close connection we have with all our busi-ness partners we would not be able to achieve the level of success that we enjoy today.”
More than 200 people were on hand to honor Nick Mitsos, Modern Tire Dealer’s Tire Dealer of the Year, at the Embassy Suites hotel in Ontario, Calif.
Best business practices at Mountain View TireQuick tips, each from the mouth of a Mitsos
Nick Mitsos oversees Mountain View Tire & Service Inc. as CEO and presi-dent. His sons, Chris, Mike and Paul, run the stores on a day-to-day basis. Here is some of their business advice, covering a variety of topics.
Customer satisfaction: “It’s not about right or wrong. It’s about perception. It’s about attitude. You need to make (cus-tomers) feel that they are right.” — Paul
Employee retention: “Salaries and pay scales are pretty high in order to keep em-ployees. If we have turnover, it’s because we insisted!” — Nick
Hiring: “Anyone I hire is an extended family member.” — Mike
Leadership: “Part of leadership is fol-low-through. For example, if you are one of my store managers, and I say focus on
‘X’ and I just leave it alone, I can’t expect everyone to take care of it.” — Paul
On-hold telephone messaging: “We have custom messaging that we change quarterly.” — Chris
Training: “We have the ability to record every phone call, with the customer’s name and the store listed. Our district managers will critique the calls with the salesmen.” — Nick
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MTD December 2011
Terry’s Tire Town acquires Englewood TireTerry’s Tire Town Holdings Inc. has acquired Englewood Tire Wholesale, one of the largest tire wholesale distributors in the New Jersey, New York and Connecticut area.
Th e addition of Englewood Tire’s fi ve East Coast distribution centers gives Terry’s Tire Town 11 state-of-the-art warehouses across the Eastern and Midwestern United States. It also expands the company’s wholesale distribution services to 12 states.
Th ose services include the administration of American Car Care Centers (ACCC) and Eco Express programs. Th ey also include the expansion of its associate dealer programs in multiple brands, including Bridgestone/Firestone TireStarz, MAST Alliance, Continental Gold, Kumho FUEL and Yokohama Advantage.
Will Tolerton, CEO and president of Terry’s Tire Town, told Modern Tire Dealer that talks between the companies began in 2009. “We had a handshake deal in August 2010.”
Tolerton shares a longtime friendship with John Boyle, Englewood Tire’s principal. For 10 years, the two have served together on the ACCC board of directors.
Like Terry’s Tire Town, Englewood grew and succeeded one customer at a time over decades — in the case of Englewood Tire Wholesale, since 1946.
“Englewood has outstanding executive leadership and a premier sales team, and we are excited to work with our new colleagues,’’ says Tolerton, who added that the company plans to keep everyone from Englewood on the payroll.
Boyle will become executive vice president of Terry’s Tire Town. Boyle also will join the Terry’s Tire Town board of directors.
Scott Williams, Englewood Tire’s number two executive for more than 20 years, will become a regional vice president.
Talks continue after Cooper locks out USWCooper Tire & Rubber Co. announced an immediate lockout of its unionized workforce at its Findlay, Ohio plant. Cooper says the move follows repeated att empts to extend its recently expired contract or reach agreement on a new long-term contract with United Steelworkers Local 207L (USW).
At the onset and throughout negotiations, Cooper said it made it clear to the USW that a competitive, cost-eff ective and timely agreement needed to be reached to avoid a risk to Cooper and its customers of simultaneous work stoppages in Findlay and Cooper’s Texarkana, Ark., manufacturing facility.
Th e company said it advanced several options to avoid the contract overlap that is looming, including a last, best, and fi nal proposal for a new long-term contract and an off er to extend the recently expired contract for an additional year with no change in terms.
Th e USW was unwilling to extend the contract more than 30 days, which would have placed the labor agreements at two of Cooper’s major U.S. facilities even closer together.
At press time, the USW had condemned Cooper’s move. Cooper has brought in temporary, non-union labor to continue manufacturing operations at the Findlay facility. Th e company said it will continue to supply its customers and is committ ed to making every eff ort to support them during this labor action.
Cooper said it is also committ ed to reaching an agreement with the USW that recognizes the realities of the tire industry while providing a competitive wage and benefi t package for its employees.
News/views
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MTD December 2011
News/views
TIA advises documenting TPMS serviceTh e National Highway Traffi c Safety Administration (NHTSA) has responded to a lett er writt en by the Tire Industry Association (TIA) earlier this year.
TIA’s lett er outlines four diff erent TPMS scenarios that tire retailers regularly face. Each scenario includes how the “make inoperative” provision of the Motor Vehicle Safety Act (49 USC 30122(b)) applies to each situation.
Th e provision “prohibits manufacturers, distributors, dealers, or motor vehicle repair businesses from knowingly making inoperative, in whole or in part, any part of a device or element of design installed on or in a motor vehicle in compliance with an applicable motor vehicle safety standard.”
In the fi rst scenario, TIA asked if a retailer can replace an inoperative TPMS valve stem sensor with a standard rubber snap-in valve stem and still comply with the “make inoperative” provision. NHTSA’s response was that as long as the TPMS part was inoperative before the customer brings the vehicle to the repair business, “a motor vehicle repair business would not be violating 49 USC 30122(b) by removing an inoperative or damaged TPMS sensor and replacing it with a standard snap-in rubber valve stem.”
However, a motor vehicle repair business that goes on to make any other element of the TPMS system inoperative, for example, by disabling the malfunction indicator lamp, would violate the “make inoperative” provision.
Th e second scenario focused on the purchase of aft ermarket winter tires and wheels and the customer’s refusal to purchase new TPMS sensors or pay for the labor to transfer the original sensors to the aft ermarket wheels.
NHTSA responded that if the TPMS is functioning at the time of the aft ermar-ket tire and wheel purchase, “a service provider would violate the ‘make inopera-tive’ prohibition of 49 USC 30122(b) by installing new tires and wheels that do not have a functioning TPMS system.
To avoid a “make inoperative” violation, the service provider would need to decline to install the new tires and rims, use the TPMS sensors from the original wheels (if they are compatible), or convince the motorist to purchase new TPMS sensors and ensure that the sensors are properly integrated with the vehicle’s TPMS system.”
In the third scenario, TIA asked if a service provider violates the “make inoperative” provision if they inadvertently break a non-defective sensor and cannot locate an immediate replacement. TIA asked if it was a violation to allow the vehicle to return to service because arrangements were made to obtain and install the replacement part at a future date.
NHTSA’s response was, “as a general matt er, a violation of the ‘make inoperative’ prohibition does not occur until a repair business allows or intends a vehicle to be returned to use...this would be true regardless of whether arrangements have been made for future repair.”
Th e fourth and fi nal scenario describes a situation where a vehicle is released to the consumer without an illuminated MIL and then it illuminates aft er the vehicle has been driven. According to NHTSA, “Th e mere illumination of the malfunction indicator lamp aft er the vehicle has been released by a motor vehicle repair business to the driver would not itself be a violation of the ‘make inoperative’ provision.”
“Based on NHTSA’s response, we are advising tire retailers to document the status of the TPMS before and aft er any tire or wheel service,” said Kevin Rohlwing, TIA senior vice president of Training. “If the electronic TPMS relearn or diagnostic tool includes the functionality to produce a print-out on the status of the system, we recommend that retailers give a copy to the consumer and retain a copy for their own records following service.”
Goodyear tops off new HQ The Goodyear Tire & Rubber Co. held a topping ceremony for its new corporate and North American headquarters in Akron, Ohio. A steel beam signed by hundreds of Goodyear’s Akron employees was put in place. The headquarters project is scheduled to be completed in early 2013.
Countrywide, Del-Nat partner Countrywide Tire & Rubber and Del-Nat Tire Corp. have formed Countrywide Direct, a partnership that allows Del-Nat stockholders to contact Countrywide directly to fulfill their needs. The union has been almost a year in the making, according to Chad Isaacs, president of Countrywide Tire & Rubber, who said the benefits of the move include: pre-paid shipping with no limitations or requirements; a dedicated support team for timely and efficient customer service; and, fill rates exceeding 97%.
Michelin sells Hankook stake French tire maker Groupe Michelin has sold its 9.98% stake in Hankook Tire Co. Ltd. Michelin said the move provides funds which it plans to invest in high-growth markets, including Tier 2 and Tier 3 passenger and light truck tires. Hankook Tire is the biggest tire maker in South Korea.
TRIB rep speaks in ChinaThe Tire Retread & Repair Information Bureau (TRIB) was well represented at Tirecon Asia 2011, which took place Dec. 14-15. TRIB Managing Director David Stevens was a featured speaker at the event, held in Shanghai, China. His presentation was titled “An Overview of the U.S. Retread Market and the Use of Advanced Technology to Improve Retread Quality.”
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MTD December 2011
News/views
ATD: 6 trends that favor tire retailersIn its latest SEC Form 10-Q fi ling, American Tire Distributors Inc. shared some of its analysis about the state of the tire industry, past, present and future. Here is what the company had to say about trends and economic events
Past: “Th e U.S. replacement tire market has historically experienced stable growth and favorable pricing dynamics. From 1955 through 2010, U.S. replacement tire unit shipments increased by an average of approximately 2.8% per year. However, during challenging economic periods, consumers may opt to defer replacement tire purchases or purchase less costly brand tires.
Present: “Th e economic environment has been showing signs of stabilization. We experienced modest year-over-year unit volume growth in 2010, which has continued during the fi rst nine months of 2011, refl ecting, in part, an economy slowly re-emerging from the severe economic downturn.
Future: “Going forward, we believe growth in the U.S. replacement tire market will continue to be driven by favorable underlying dynamics, including:
• increases in the number and average age of passenger cars and light trucks;• increases in the number of miles driven;• increases in the number of licensed drivers as the U.S. population continues to grow;• increase in the number of replacement tire SKUs;• growth of the high performance tire segment; and• shortening tire replacement cycles due to changes in product mix that
increasingly favor high performance tires, which have shorter average lives.
California tests lead-free wheel weightsTh e California Environmental Protection Agency’s Department of Toxic Substances Control has released the fi ndings of its “wheel weight assessment.” Th e report’s conclusion makes a compelling case for steel wheel weights.
Th e study was conducted to measure the environmental impacts of lead alterna-tives in the wake of a law passed in the 2009 California legislature that bans the sale, installation and import of lead wheel weights in the state. Th e life-cycle study measured impacts associated with lead, steel and zinc wheel weights.
It concluded that steel “appears to be the preferred alternative for clip-on weights due to its comparatively low toxicity and reason-able manufacturing impacts.” Adhesive wheel weights were not tested.
“As an increasing number of states take a look at this issue and take action to ban lead weights, reports like this one will play an important role in helping states make wise decisions about alternatives to lead,” says Kevin Keefe, director of marketing for Hennessy Industries Inc. Hennessy produces BADA wheel weights.
TCi Tire will add eight distribution centers in Q1 ‘12TCi Tire Centers will open eight new full-service distribution centers in the fi rst quarter of 2012. Th e eight new locations will bring TCi’s distribution center total to 86.
Th e expansion will focus on key growth markets for TCi. Th e eight new locations will be added in: Atlanta, Ga.; Chicago, Ill.; Houston, Texas; Long Island, N.Y.; Lubbock, Texas; Richmond, Va.; San Jose, Calif.; and Toledo, Ohio. Th e Atlanta, Chicago and Houston locations will be the second TCi centers in those markets.
“We need second locations in those markets to become eff ective at providing the service our customers really require,” said Jim Borkey, senior vice president of distribution for TCi Tire Centers. “Toledo, Ohio, is a key market for us with Detroit nearby. We can service Detroit as well as northeast Indiana.”
Borkey said the expansion is the result of an increased demand from TCi’s pas-senger and light truck retail customers throughout the U.S.
Headquartered in Duncan, S.C., TCi is a wholly owned subsidiary of Michelin North America Inc. Its two divisions are distribution and commercial. ■
Sears adds Radar, Verenti linesSears Auto Centers soon will carry Radar brand tires at its more than 800 outlets. The deal between Sears, Roebuck and Co. and Omni United Pte. Ltd. also will allow Sears to sell Radar tires online. Radar is the flagship tire brand of Singapore-based Omni United, which has a domestic subsidiary; Omni United USA Inc. Sears initially will offer the upgraded Radar RPX900 and the recently introduced Verenti R6 all-season ultra-high performance tire. “Having our products sold through Sears Auto Centers is a big step for Omni and for Radar,” says G.S. Sareen, CEO and president of Omni United.
Belle Tire opens store No. 86 Belle Tire Distributors’ new store, number 86, opened in Gaines Township, Mich., in November, 2011. “The store is our prototypical, 10,000-square-foot building with two full alignment pits and eight service hoists,” says Jeff Kruse, vice president of retail operations. The store’s two-level warehousing space can accommodate 3,000 tires. Belle Tire is eighth on the Modern Tire
Dealer 100 list.
TIA gets first TPMS subscriber TCS Technologies has signed the first subscription to the Tire Industry Association’s (TIA) newly created TPMS Database. The Database incorporates the information in TIA’s TPMS Relearn Chart into a file that can be linked with point-of-sale (POS) software. This enables the TPMS requirements for each specific make and model to be printed directly on the work order.
Hankook backs college b-ball Hankook Tire America Corp. has taken its sports marketing strategy to the NCAA men’s college basketball. During nine basketball tournaments this season, Hankook signage was featured at courtside. The tournaments were broadcast not only nationwide, but also on multiple television networks. In addition to college basketball, Hankook has had home plate signage at 22 Major League Baseball team ballparks this year, and the company has participated in motorsports events.
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MTD December 2011
I made my annual pilgrimage to the SEMA Show in November. With only a few exceptions, almost ev-
ery tire dealer I spoke with said: a) business remains challenging, and b) they plan to buy very cautiously in the coming months. Dealers believe that tire prices will come down due to soft demand, lower raw material costs and the coming elimination of Chinese tariff s. Some raw materials have indeed declined, but because of FIFO accounting most manufacturers will probably not see any bott om line benefi t from today’s lower costs until 2Q12 and, as such, I expect tire prices to remain fi rm for at least the next several months. Manufacturers are willing to cut production to control inventories as their emphasis is on needed profi tability vs. market share.
Monthly surveyA number of independent tire dealers were
surveyed concerning current business trends. Except for tire prices and costs, the results of the October 2011 survey are compared with those of October 2010.
Dealer outlooks remain optimisticRoughly 43% of passenger tire dealers be-
lieve business will improve over the next six months while 57% believe it will stay about the same. As for truck tire dealers surveyed, 62% see business staying level while 38% see business improving. Since July, we have seen outlooks gradually improve despite smaller margins. Manufacturers continue to batt le high-cost raw materials still in inventories so pricing is likely to remain elevated, but is unlikely to increase much further.
Passenger and truck tire volumes take a small step back
On average, retail sales of new replacement passenger tires were down 2% when compared with October 2010. Consumer demand remains stagnant as retail prices remain high and consumers are at a breaking point in which they are unwilling to pay much higher prices. Truck tire sales showed signs of slowing as volumes were fl at, but retreaded tire sales were strong, growing 4%.
Profi t margins improved in October In comparing the month of October 2011 with September
2011, average costs for size 215/60R16 major brand tires were up 1% while selling prices were up 2%. Th e average cost for
a 215/60R16 private brand tire was down 3% while selling prices were down roughly 1%. Th is month widened the gap between major and private brand tire costs, which may be an incentive for consumers to trade down as tires remain expensive and money remains tight.
Truck pricing seen as very fi rmIn October 2011, 47% of passenger tire dealers saw pricing
as very fi rm while 33% saw it as aggressive. Th e remaining dealers saw pricing as normal. Sixty-four percent of truck tire dealers saw pricing as very fi rm as high demand for truck tires is causing manufacturers to discount sparingly. Fourteen percent saw pricing as normal, while 22% saw it as aggressive.
Inventories levels are just about right Th e survey indicated that 60% of passenger tire dealers believed
inventories were in line with current business levels, with the
remaining dealers equally split between viewing inventories as too high and too low for current demand. Roughly 57% of truck tire dealers we surveyed indicated inventories were in line with current business levels, while 36% felt inventories were too low. Th e remaining dealers felt inventories were too high. Dealers are doing a good job of managing inventory levels and adjusting with changes in consumer demand.
Service business strong in otherwise slow environment Dealers who provide automotive service reported that 28%
of revenues, on average, were generated by service during October. Dealers indicated that service business grew by 9% in October 2011 vs. October 2010. Many respondents are claiming service was the key driver of growth this year. ■
Analyst Saul Ludwig is a managing director with Northcoast Research Holdings LLC based in Cleveland, Ohio. He concentrates on the tire and chemical industries. He has been writing for Modern Tire Dealer since April 1975.
Ludwig Report
Tire prices to remain fi rm for the next several months
By Saul Ludwig
How dealers view their near-term businessDealers JUN JUL AUG SEP(R) OCT(P) OCT(‘10)
Passenger tireWill improve 31% 23% 36% 50% 43% 33%Will worsen 6% 54% 18% 8% 0% 0%Will stay level 63% 23% 46% 42% 57% 67%
Truck tireWill improve 62% 50% 39% 45% 38% 0%Will worsen 0% 10% 9% 9% 0% 0%Will stay level 38% 40% 55% 46% 62% 100%R-Revised P-Preliminary
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By Bob Ulrich and Bob Bissler
The numbers don’t lie. Th e 2011 Specialty Equipment Market Association (SEMA) Show was a huge success. A record 132,000 people att ended the event, according
to the Tire Industry Association (TIA), which sponsored the show’s Global Tire Expo section. Th ere also were 61,000 buy-ers, also a record and close to 19% higher than last year.
Large independent dealers were out in force. Nearly half
of the dealers on the Modern Tire Dealer 100 list, and nine out of the top 10, were in att endance. Th ey accounted for 547 buyers.
Th e number of SEMA Show exhibitors was up, too. Th ere were 2,142 exhibitors in all sections, up 12% compared to last year. Th e growth was even more signifi cant at the Global Tire Expo: Th e 239 participating companies represented a 24% increase.
“Our relationship with SEMA has never been stronger,” says Roy Litt lefi eld, TIA’s executive vice president.
2011 SEMA Show
Walking the trade show fl oor
Broken records More people attended the 2011 SEMA Show and Global Tire Expo than ever before. For those of you who didn’t,
here’s the capsulized version, courtesy of MTD
Greenball reaches milestoneGreenball Corp. CEO and President Chris Tsai says the industry has been “like a roller coaster” since he founded the Anaheim, Calif.-based company 35 years ago with his wife, Jenny. “We’re still here, and we’re operating in a profi table position,” he said.
Greenball’s Chris Tsai (right, with SURE Tire Co. President Pat
McLaughlin) recently became a distributor of Summit tires.
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Both the SEMA Show and Global Tire Expo were part of Automotive Aft ermarket Industry Week, held in Las Vegas, Nev., Nov.1-4. Th e Automotive Aft ermarket Products Expo (AAPEX) was part of the draw.
Th e 2012 SEMA Show and Global Tire Expo will be held in Las Vegas from Oct. 30 through Nov. 2. AAPEX will close one day earlier.
TIA’s training tourTIA is taking its four-day Automotive Tire Service (ATS)
Certifi cation Course on the road in 2012. Th e 28-city tour is targeting the next generation of tire
technicians, according to Matt White, TIA’s director of tire service. “We feel that vocational (education) in college does not have the proper tire service training.”
“Th ey are lacking in the modern tire service training,” says Mark Cook, director of communications. “Th ere is not enough emphasis on TPMS (tire pressure monitoring systems).
“We want to raise the bar of the educational level of the technician for 21st century demands. As a result, general public perception and trust will be improved.”
Th ose who complete the four-day class will be certifi ed as Advanced ATS Instructors, allowing them to certify ATS instructors and technicians in the fi eld.
Th e tour will visit cities in large metropolitan areas in the continental United States beginning in January. Here is the tentative schedule. For dates, see www.tireindustry.org.
First quarter: North Canton, Ohio; St. Louis, Mo.; Miami, Fla.; Philadelphia, Pa.; Chicago, Ill.; Los Angeles, Calif.; and Toledo, Ohio.Second quarter: Minneapolis, Minn.; Atlanta, Ga.; Seatt le, Wash.; Orlando, Fla.; New Orleans, La.; Greensboro, N.C.; Boston, Mass.; and Dallas, Texas.Th ird quarter: Richmond, Va.; Phoenix, Ariz.; Salt Lake City, Utah; Baltimore, Md.; Denver, Colo.; New York, N.Y.; and Houston, Texas.Fourth quarter: Memphis, Tenn.; Cincinnati, Ohio; Kansas City, Mo.; Jacksonville, Fla.; San Antonio, Texas; and San Francisco, Calif.
Th e training tour is being underwritt en by 14 sponsors: 31 Inc., Mighty Distributing System of America Inc., AME International LLC, American Tire Distributors Inc., Mohawk Rubber Sales Inc., Hennessy Industries Inc., Patch Rubber Co. (Myers Tire Supply Distribution Inc.), Bartec USA LLC, NAPA Tire Hardware, Dill Air Controls Products, Plombco Inc., Ingersoll-Rand Co. Ltd., Rema Tip Top North America Inc. and MTD, the media sponsor.
Presidential goals include more programsNew TIA President Larry Brandt’s goals include continuing
to expand the Global Tire Expo, especially with such new and relevant programs as “TPMS at 10” and the topical “Green @ Noon” series.
Another goal is to continue to strengthen communications with the Rubber Manufacturers Association and fi nd common ground so the two associations may speak with a single voice on relevant issues of the day.
During the Tire Industry Awards, aft er outgoing TIA President Mike Berra Jr. passed him the gavel, Brandt announced that a central theme of his administration would be maintaining “continuity in TIA’s direction and leadership” and emphasizing
Click on the QR mobile tags in the tire sidebars for more information!
Falken’s WildPeak H/T will be backed by a 60,000-mile limited tread wear war-ranty and a ride guarantee.
Net square footage, trade show fl oor
SEMA Show: nearly 1 million sq.-ft. (up 10%).
Global Tire Expo: 130,000 sq.-ft. (up 19%).
Q: Have low rolling resistance tires had much of an impact on your sales?
A: “Nope. That marketing hasn’t taken hold in our market yet.” Tom Lund, Alta View
Tires and Service, Sandy, Utah
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TIA’s federal relevance in protecting and educating the driving public and tire dealers.
“TIA’s hallmark is its highly respected training program, with its classes and sought-after support materials,” said Brandt. “TIA is constantly leading the industry in education and training, from our newly updated TPMS Relearn Chart, to its data now being made available for point of sale systems, to the just announced program with Tiremetrix for the TPMS Manager Powered by TIA going online.”
Industry greats receive recognition
TIA inducted four individuals into the Tire Industry Hall of Fame in Las Vegas prior to the SEMA Show. Th e event honors the outstanding accomplishments of members of the tire industry.
Th e ceremony began with opening comments from TIA Vice President Randy Groh, who led a moment of silence for three TIA industry greats who passed away in the last year: Jerry
White, who died aft er his induction last year; Bob Malerba, TIA’s president from 2005-2006; and Ed Wagner, who was inducted into the Hall of Fame in 1996.
Th e 2011 Hall of Fame inductees are Bill Fountain, founder of Edmonton, Alberta-based Fountain Tire in Canada; John Gamauf, retired president of consumer replacement tires for Bridgestone North American Tire LLC; Onkar Kanwar, chair-man of Apollo Tyres Ltd.; and Ralph “Buddy” Snow, retired vice president and counsel of Oliver Rubber Co.
Th e induction ceremony was followed by comments from Berra , who refl ected on TIA’s accomplishments during his presidency, including enhanced educational services and an emphasis on industry cohesiveness.
CIMS celebrates 40 in big waysTh ere was a lot to celebrate at the CIMS Inc. booth: a 40th
anniversary; the creation of a certifi cation program; and an updated website.
President Susan Kruder’s late husband, Paul Kruder, founded the company in Akron, Ohio, in 1971. He spent more than half a century in the tire industry and was instrumental in establishing the tire registration standards that are in place today.
(Th e company was started to help its clients comply with the record-keeping requirements of the Federal Motor Vehicle Safety Act of 1966 and related federal regulations, specifi cally 49 CFR Part 574.)
“Because tire registration is a federal law, we help our clients comply with the regulations, but also we give them a valuable sales tool that helps to punctuate to their customers their commitment to safety,” said Susan Kruder.
The new Paul J. Kruder Seal of Certi-fi cation program will acknowledge the na-tion’s companies that are in compliance with tire registration regula-tions. Companies will be evaluated beginning Dec. 1, 2011; the fi rst recipients will be an-nounced in the third quarter of 2012.
“Th e program is designed to offi cially recognize those safety-focused companies that have tire buyers’ interests in mind as they lead the tire registration process,” she said.
The fi ve-rib Landsail City Star+ features a low rolling resistant compound.
President Susan Kruder (second from left) is surrounded by Execu-tive Vice President Kathleen Turner and Vice Presidents Shirley Sumego, Jeff Coffman and Angela Trayer.
Performance touringVogue Tyre & Rubber Co., known for its luxury touring tires, is adding “more of a performance touring tire” to its lineup in the next month or so, according to President Greg Hathcock. “It’s a new market segment for us.”
‘Perfect’ logoPerfect Equipment Inc. offi cially unveiled a new
corporate logo (left) and tagline (“Balancing the future”), plus a P-value lineup of steel clip-on wheel weights. “As we look forward
into the future, Perfect Equipment’s plan is to balance the future generations and to continue to be on the forefront of innovation,” said Marketing Manager Gregory Parker. The P-value line features a fi ve-year corrosion resistance coating.
cocococococorrprpollplplplplplplplusususus aa PP-value lineup
iintot the future Perfect Equipm
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Th e updated CIMS website is designed to be more educa-tional and easier to use.
“It will give all of our customers an easier forum in which to implement CIMS’ tire registration services,” said Kruder. “Tire dealers can sign up for CIMS E-tire Registration online, order CIMS All Brand Tire Registration Forms or learn more about our Point-of-Sale Electronic Registration.”
Th ere is an app for thatASA Automotive Systems is creating a customizable app
for retail tire dealers. According to President Ken Halle, the app will be ready by the end of the year.
Initially, the app will allow the consumer to:
1. Search for tires and request quotes;2. Find a dealer’s location; and3. Use coupons and be informed about special off ers.
He said that aft er phase two of the project is completed, consumers will be able to buy tires through the app. (ASA’s customizable app for wholesale dealers already is in use. It is linked to the ASA wholesale website.)
Apps are not the only way the company is going mobile. Mobile and wireless tools compatible with ASA soft ware include rugged tablets (lightweight, durable alternatives to traditional laptop computers); bar code scanners that also have “ship and bill” capabilities (inventory mobility); VIN scanners (CarSide); and iPads and iPhones.
“We’re continually looking to arm people with applications that will... increase traffi c fl ow and (drive) new business to their dealerships,” added Halle.
OEM replacement sensorSchrader International Inc. introduced an additional program-
ming option for its EZ-sensor technology, a programmable OEM-replacement sensor.
In addition to the hand-held programming tool line from Bartec USA LLC, the Bartec TPMS Programming Accessory Device (TPMS PAD) makes programming, replacing and relearning TPMS replacement sensors quick and effi cient.
Th e Bartec TPMS PAD is now one of 12 diff erent options that are capable of programming the Schrader EZ-sensor, the company notes.
“With more than 238 million TPMS sensors in the fi eld currently, service and repair shops need solutions that will make TPMS programming and repair as easy as a standard oil-change,” said Scot Holloway, general manager, Bartec. “Th e new Bartec TPMS PAD off ers an additional, quick way of programming Schrader’s EZ-sensors. Simply load the soft ware on the shop’s PC/laptop and connect the TPMS PAD to your computer. With the easy-to-use on-screen interface, choose the make/model/year of the vehicle you’re working on and quickly program EZ-sensors.”
Key features of the TPMS PAD include:
• Quick Make/Model/Year on-screen look up, including 2012 model year coverage.
• Direct reading of an existing/damaged sensor for quick programming of EZ-sensor.
• On-Screen Relearn Procedures. By including the relearn procedure in the TPMS PAD, technicians will have all necessary instructions to properly relearn the vehicle’s TPMS system without the need for alternative references.
Th e TPMS PAD is the most recent addition to the portfolio of scan/programming tools compatible with Schrader’s EZ-sensor.
Full silica compounding reduces the N’blue ECO’s rolling resistance.
Hankook motorsports in 2012In Formula Drift, Hankook Tire America Corp. not only will focus more on branding, but also will “work more closely to interact with social media,” said Paul Jho, motorsports marketing manager. The company will launch a D.O.T.-approved race tire, the Hankook Ventus TD (pictured with Jho), which will replace the Ventus Z211.
Custom wheels from ATDAmerican Tire Distributors Inc. recently
gained exclusive rights to distribute the TIS and Dropstars brand custom wheel lines. New styles will become available in early 2012. ATD also has
formed a marketing alliance with “DUB” magazine to help promote
ATD’s wheel business.
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‘5 Trends in 5 Minutes’ from R.L. Polk & Co.Tim Rogers, David Portalatin and Mario Gabelli presented
the latest financial, industry and consumer trends at the Automotive Aft ermarket Industry Association (AAIA) Town Hall at AAPEX. Th e event was hosted by AAIA President Kathleen Schmatz.
Rogers is president of Polk, the event’s sponsor, which is an operating unit of R.L. Polk & Co. His “5 Trends in 5 Minutes” presentation outlined developments in the auto aft ermarket.
• Light vehicle sales are headed up, but slower than expected.• There are dramatic shifts in the mix of new vehicle registrations.
• Th ere is no end to the parts proliferation challenge.
Rogers explained that OEMs and their dealer networks are an awakening giant. Dealer profi ts have gone up 60% in the last 24 years. In addition, there are 15% fewer dealerships. Th ese factors will continue to remain signifi cant to the aft ermarket.
Portalatin is executive director Industry Analysis with Th e NPD Group. He explained the major auto trends that have taken place since the recession.
In 2008, consumers began to defer automotive spending because of a lack of funds. In 2009 the trend was to renew, or perform maintenance to keep older cars on the road longer. In 2010 the recession caused consumers to rethink this strategy, leading to robust growth that year.
Portalatin said that as of October 2011, consumer’s outlook on the economy has grown worse than it was in 2008. Because 70% of consumers he surveyed said they know someone who has been laid-off , consumer pessimism currently persists.
Gabelli is chairman of GAMCO Investors Inc., a widely recognized provider of investment advice. Gabelli said that when he founded GAMCO in 1977, the aft ermarket could be summed up as “mature, fragmented and with free cash fl ow.” He said that today the aft ermarket can be summed up the same way — mature, fragmented and with free cash fl ow.
Gabelli cited a quote from Charles Darwin that applies to the aft ermarket — those who adapt to change are the ones who survive. He said the U.S. needs to rethink its energy dependence and fi nd alternate sources.
P Zero Silver leverages F1 involvement Th e familiar Pirelli P Zero tread patt ern is the same. Th e
inside of the tire, however, is state-of-the art.Pirelli Tire North America
Inc.’s new Pirelli P Zero Silver shares its modeling process, including material technology, with Pirelli’s Formula One P Zero line.
Pirelli & Cie SpA was named the sole tire supplier to all F1 teams only last year. However, it has a 104-year history of racing involvement, including, at one time, Formula One.
“Th at is why there wasn’t a steep learning curve when we went to the series,” said Rafael Navarro III, Pirelli Tire North America’s vice president of communications and media relations.
Alan Ngo added that Nitto dealers had input on the design of the tire.
The Pirelli P Zero Silver is designed to combine great road feel with excellent wet braking and anti-aquaplaning performance, said Pirelli.
Coats for techsHennessy Industries Inc. introduced two pieces of tire service equipment. The Coats EL-X Express Lane Inflation System (left) is compatible with all Coats tire changers. The Coats ProRide Diagnostic wheel balancer (right) is available in pneumatic locking (PL) and standard clamping locking versions.
Software companies displayed the latest technolo-gies (pictured is ASA’s Michelle Lanza).
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Similarly, Pirelli’s use of the modeling and relative data gathered at F1 races allowed for a faster development of the P Zero Silver, reducing the time required to develop a tire from the ground up to only a few months.
P Zero Silver is the fi rst limited edition tire specifi cally developed for premium sport sedan and coupe drivers re-quiring an extended durability UHP tire. In addition, all the
compounds of the P Zero Silver are “aromatic oil free,” which meets the most restrictive European regulations in terms of protecting the environment.
According to Matt eo Batt aini, chairman, CEO and presi-dent of Pirelli Tire LLC, the new tire will be produced at the company’s second-generation MIRS (Modular Integrated Robotized System plant in the Sett imo Torinese industrial and technology hub, where all the compounds for F1 are produced.
Th e P Zero Silver will be available during the fi rst quarter of 2012 in eight 19- and 20-inch sizes.
Cooper targets female demographicCooper Tire & Rubber Co. showcased a new marketing
campaign, “Precious Cargo,” directed at mothers.“We tracked four key consumer groups and found that there’s
an information gap when it comes to women and tire mainte-nance,” said Hal Gardner, Cooper’s vice president of Marketing Communications & Intelligence. “ According to Cooper’s survey of U.S. mothers, only 1% consider tire maintenance a priority when they think of keeping their children safe. Less than 1% of responses reported automotive maintenance as a tactic to ensure their child’s safety. Zero responses mentioned tire safety.
Half the mothers surveyed revealed spending more than four hours per week shutt ling their kids around town. One-fourth of them did not know how to fi nd their vehicle’s correct tire pressure, properly check tire pressure and tread depth, or change a tire.
To broaden its outreach to women, Cooper Tire partnered with Women’s Automotive Resource, AskPatt y.com in July, 2011.
Hercules: plans for 2012 Bill Trimarco, CEO and president of Hercules Tire & Rubber
Co., likes to keep his plans close to the vest. However, in an exclusive interview with MTD at the SEMA Show, he opened up a litt le bit about his goals for 2012.
“In the fi rst half, we will have line extensions for our Road-tour and Tour 4.0 touring tire lines,” he said. “In the second half, we will introduce two or three programs supporting completely new lines.”
Trimarco said the company will continue to put most of its invest-ment in the Hercules brand, which includes adding sizes to its radial H-Series truck tire of-ferings. However, the Ironman brand also will be expanded.
Size additions to the Ironman Radial A/P line are under consider-ation for 2012. “We’re also considering an ex-pansion in the specialty segment for the Ironman brand,” he said.
“We’re concerned about the elevation of price in our products and similar products because of all the increases in 2011. We’re very focused on always providing value.” ■
The Nika Avatar “has many sipes and cross grooves for wet and snow traction,” said Hyland.
“Roadtour is becoming our power line,” said Hercules CEO Bill Trimarco (pictured is the Roadtour655).
Corghi wheel balancerCorghi USA Inc.’s Artiglio Master Code tire changer, launched last May at the Autopromotec show in Bologna, Italy, has an automatic work cycle with wheel size recogni-tion and automatic tool settings.
Continental give and takeTravis Roffl er (left) awarded Hank and Nancy Biedrzycki matching Porsches in the “Continental Tire Dream Giveaway.” The company’s ContiCrossContact LX20 placed fi rst in the “New Product Showcase.”
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W hat began as a chance meeting at Autopro-motec in 2008 has become a partnership between ITDG and point S.
Michael Cox, president and CEO of Independent Tire Dealers Group LLC (ITDG), and Fabien Bouquet, international operations director, point S Development, have entered into a seven-year master franchise contract. Th e agreement gives ITDG the trademark rights to use
the point S brand name in the U.S. In addition, ITDG has entered into a contractual obligation to rebrand the outlets in its network within a pre-arranged timeframe.
According to Cox, both groups have similar concepts that will be mutually benefi cial in the new arrangement.
“Point S wants to be involved in the largest automotive aft ermarket in the world, which is North America,” said Cox. “Th ey have some muscle so we decided that SEMA was a good time to make the announcement that we would be joining forces.”
Founded in 1994, ITDG represents 350 independent tire and auto service locations. Point S is the leading independent tire and auto service dealer network in Europe with 2,000 point-of-sale members in 21 countries. Th e point S trademark was established in France in 1971.
“Now, ITDG will be made up of 150 members at 350 locations in 27 states, plus the point S organization that is in 22 countries and has 2,000 points of sale and a 6% market share in Europe,” said Cox. “They also have a
proprietary tire line right now that is made by Continental and we are looking at gett ing that DOT-approved to bring that product into the U.S. for ITDG’s proprietary line.”
Cox said that ITDG is also looking to add a low-cost radial (LCR) to the group’s portfolio. Point S wants to do the same in its countries. ITDG has talked to manufacturers in the past already about supplying an LCR.
“Now when we go to manufacturers to talk about supplying us with this LCR, the volume is multiplied a number of times over,” said Cox. “Being partnered with point S gives us some muscle.”
Point S also has its own proprietary bat-teries, fi lters and wiper blades, so Cox said there are many avenues to take to enhance the ITDG program. He added that point S is exploring becoming involved with some fl eets that are global in scope, of which point S had no previous coverage for in the U.S.
Point S is also looking at expanding into Asia. In addition to the ITDG agreement, point S recently signed an agreement in Norway. Th e group initiated its Scandinavian presence two years ago in Finland.
As point S grows, Cox is excited about the opportunities it creates for ITDG.
“Th ey continue to look to expand and it really helps us out as far as a global presence,” he said. “Our stature has grown from this relationship within the industry.”
Cox said ITDG members fi rst learned about the relationship at ITDG’s annual meeting in April 2011. Several representatives from point S were introduced at the meeting, when 75% of ITDG’s members were in at-tendance. In addition, regional meetings held in September included a point S presentation.
Th e organizations made the partnership offi cial at the Global Tire Expo on Nov. 1. Th e exposition was part of the 2011 SEMA (Specialty Equipment Market Association) Show in Las Vegas, Nev.
“Even if we are living in two diff erent continents, we clearly realized through our meetings and discussions over the past years that we are facing a lot of similar issues in the American and European markets with possible synergies to solve some of them,” said Bouquet. “Th e fi rst step of our cooperation development has been achieved by granting ITDG the exclusive and legal representation of the point S retail concept for the United States. Th e rapprochement of ITDG and point S is forming the largest independent tire dealer network worldwide.” ■
Focus on dealers
ITDG, point S enter master franchise agreement
Fabien Bouquet, point S international operations director (left), signed a franchise agreement with ITDG President and CEO Michael Cox at the Spe-cialty Equipment Market Association (SEMA) Show/Global Tire Expo.
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29www.moderntiredealer.com
Farm tires: a bountiful yearWhile demand keeps everyone happy, tougher crops challenge manufacturers to come up with more durable tiresBy Bob Bissler
I t has been a good year to be a farmer. It also has been a good time to sell tires to them. According to the United States Department of Agriculture (USDA), net farm
income is forecast to be up 31% at the end of 2011, to $103.6 billion, up $24.5 billion over 2010.
Th e USDA measures farm sector earnings in three areas: net farm income, net cash income and net value added. All three are forecast to rise more than 20% in 2011.
Th e USDA also projects net farm income and net cash income to exceed $100 billion for the fi rst time.
“Th e farm tire market continues to be even more robust than 2010,” said Robyn Fisher Conrad, director of marketing at Mi-chelin North America Inc. “Th e market tends to trend with farm net income, which is projected to be above 31% versus 2010.”
Th e USDA expects a 16% increase in sales of crop and livestock at U.S. farm operations in 2011. Th at projection includes gains spread out among many diff erent categories.
“I can tell you that 2011 has been a strong year for agriculture,” said Andrea Masella, marketing manager Agricultural & Forestry Tires, Trelleborg Wheel Systems Americas Inc. “At Trelleborg, so far we grew our volumes on rear radial replacement by about
80% versus 2009 YTD. Th is was also due to the introduction of new sizes strategic for the North America market place, and we consolidated our volumes on OE where we expect a small growth by the end of 2011.
On bias tires, our growth in units was above 13% in replace-ment and above 15% in OE.”
Masella said he believes the strength of 2011 will continue in 2012. He expects another strong year with consistent demand from OE customers, especially in the fi rst quarter.
Feed the worldTh ere’s a big reason farmers are in big demand — hungry
people. In October of this year, the world’s seven-billionth (700,000,000,000) person was born.
Th e demand for effi cient, productive farm operations is greater than ever.
“Th e world population is growing and so will the demand for agricultural products and the price of those,” said Masella. “We are now moving to
Commercial Tire Dealer™
ALSO IN CTDFarm tire market share:OE radial/bias rear, small farm . . . 32Double Coin doubles up:FT125 Super Wide trailer tire . . . 34Commercially Viable . . . 36
The USDA’s 2011 forecast of net farm income is the second highest infl ation-adjusted value recorded since 1973.
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Farm tires
a complete new agriculture, run by professionals, using profes-sional tools and machinery to achieve these new challenges. Th e average horsepower of agricultural machinery will keep growing in the future.”
As the numbers continue to roll in for 2011, the farm report continues to look very positive. Th ere are two big reasons farm income has gone up this year — an excellent growing season and high crop yields at harvest time.
“Th is has been a great year for many crop producers in the U.S. Many farmers are reporting their best harvests ever in the Midwest and West, and commodity prices have been high for months,” said Seth Walters, vice president, marketing and supply chain, Alliance Tire Americas Inc. “It’s been hard, though, for producers in much of the High Plains, where there’s been a terrible drought, and for the livestock producers who have to pay those high commodity prices for feed for their animals. In all though, the farm equipment and farm tire business has been great this year.”
Walters said that farmers have been eager to put some of their crop profi ts into new equipment, driving OE sales, while replacement sales have also remained strong. Because of this, some manufacturers have been a bit short on supply with certain
ag tires over the last year. Th is has created opportunities for other companies.
“I’d say over the next couple of years, my expectation is that our original equipment business will grow greatly,” said Bill
Haney, sales manager, North America, Balkrishna Industries Ltd. (BKT). “All product segments have increased signifi cantly, including construction and OTR. I see a trend where OTR is starting to break loose a litt le bit, showing signs of creating some demand coming into 2012. Farm is just on a roll and it’s continuing to roll.”
“Farmers will be ending 2011 with money in their pockets and black ink on their balance sheets, ready to invest in new equipment or in making their current machinery as eff ective as possible coming into next season,” said Walters.
“Weather conditions did create hardships for some areas of the country this past spring,” said Bill Dashiell, vice president of product marketing, TBC Wholesale Group. “But overall, the industry had a strong 2011 season with 2012 looking very good for the ag industry and its suppliers. In 2011 our Harvest King tire shipments improved throughout the year due to strong demand for our products.”
Strong demand and a strong market are refl ected in additional numbers from the USDA. Th e value of the farm sector’s equity (net worth) is forecast to rise 7.7% in 2011. Th e estimated increase in farm sector equity is largely due to an estimated 7.1% increase in the value of farm business real estate. Farm sector debt is estimated to decrease by 1.9% in 2011.
While the numbers remain good in the U.S., many factors outside the country play a major role in shaping the U.S. farm market.
“Th e biggest change in 2011 over 2010 is greatly increased net farm income,” said Haney. “I att ribute that to global demand for food. Emerging countries are demanding a western style diet — China in particular, but all the Asian countries. If you look at raw materials in mining products, exports are booming. Well, the same is true for food products. We’re exporting big to China and Japan.”
Rubber versus geneticsScience has been playing a bigger role in the global
demand for food. Scientists and geneticists are working hard to develop crops that are stronger, healthier and produce higher yields.
‘A lot of companies globally view OTR as the bett er income
opportunity than farm.’ Bill Haney, North American sales manager, BKT
Domestic replacement farm tire shipments were up 8% in 2011 compared to 2010.
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MTD December 2011
Farm tires
“Stubble damage is a huge issue with farm tires,” said Tom Rodgers, director of sales and marketing, Bridgestone Americas Tire Operations LLC. “Genetics are improving on all these crops, along with stock quality and standability. Th ere are bigger stalks that hold up bigger ears of corn and that is really impacting tires. When a crop is cut low by the combines, that stubble provides a prett y stiff , piercing stalk that does a good job of deteriorating
the tread of the tire.”Gradual stubble erosion over time is one crop hazard farmers
have to worry about. But thanks to genetics and new, tougher crops, another concern today is punctures.
“Th ese stalks can puncture tractor tires,” said Rodgers. “I’ve seen pictures of cornstalks going all the way through a tractor tire. Th e stalks are that durable. It’s because of the genetics and the seed, where you’re trying to get bigger yields and it just builds a bett er stalk.”
Rodgers said that a greater emphasis is being placed on educat-ing farm tire dealers about the hazards of stubble erosion and stalk punctures. Th ere are also new products being developed to tackle the problem.
“Th ere are a lot of products that some smaller companies are developing — they’re calling them stalk stompers or stalk pushers. Th ey basically lay on a combine head and they will push that stalk over so it doesn’t damage the tire. Once you break it off , it doesn’t have the same opportunity to damage the tire as when it’s originally standing up. Th ere are diff erent mechanized ways that people are coming up with, and usually it starts with a farmer gett ing an idea of how to push that stalk over.”
So while farm tire demand has been strong and new markets are opening up for farm tire makers, new markets are coming into demand to tackle stubble erosion as well.
“We have introduced an American Farmer Stalk Buster implement line to help combat stubble issues in the fi eld,” said Clark Ent, farm account manager, Specialty Tires of America Inc. “We are fi nding that stubble damage is the number-one tire issue with farmers in the Midwest. We are planning to add more off erings to this line in 2012.”
Stemming the fl ow“Th e challenge is industry capacity — fl ow,” said Haney. “Th at
is aff ected by plants — investment and equipment. A lot of companies globally view OTR as the bett er income opportunity than farm. So a lot of those resources go to OTR production.”
Successful farming operations will continue to create a need for more farm tires. As it does, manufacturers will have to rise to meet the increased demand.
“What’s been an issue for the past couple of years has been the availability of radial rear ag tires,” said Randy Gaetz, vice president of sales and marketing, Del-Nat Tire Corp., marketers of Akuret brand farm tires. “Th at seems to be gett ing bett er. Some of the suppliers have added capacity, which has helped alleviate part of the situation. Our suppliers have increased capacity in the past few months.”
Gaetz said with the horsepower of today’s farm machines and the needs of the tires, there’s a clear distinction between a bias application and a radial one.
“If that’s going to change, it’s going to be OE-trended by the manufacturers putt ing radial tires on the smaller horsepower machines.”
As OE trends change the farm tire market, it looks like more good years are in the forecast for farmers. Corn and soybean prices are high, and demand has put a lot of revenue in the pockets of farmers. Th is has created opportunity for farm tire makers to sell tires in two ways. Farm equipment sales are way up and continue to be very strong. Th at creates demand on the OE side. Th e replacement market remains extremely strong as well. As farmers continue this trend of success, more of them will be reconditioning existing equipment — and replacing tires. ■
‘Stubble damage is a huge issue with farm tires. I’ve seen pic-
tures of cornstalks going all the way through a tractor tire.’
Tom Rodgers, director of sales and marketing , Bridgestone Americas
DOMESTIC OE FARM TIRE BRAND SHARE, 2011Radial rear OETotal shipments: 305,000
Goodyear 43.5%Firestone 40.0%Michelin 12.0%Titan 2.5%BKT 2.0%
Bias rear OETotal shipments: 348,000
Firestone 42.0%Goodyear 30.0%Titan 24.0%Trelleborg 2.0%Others 2.0%
Small farm OETotal shipments: 425,000
Goodyear 37.0%Firestone 25.0%Titan 22.0%American Farmer 5.0%BKT 4.0%Carlisle 2.5%Alliance 2.0%Trelleborg 1.5%Others 1.0%
Radial rear OE tire shipments in the U.S. were up 13% versus 2010.
Bias rear OE tire shipments in the U.S. were up 5.5% versus 2010.
Small farm OE tire shipments in the U.S. were up 9% versus 2010. Source: Modern Tire Dealer
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MTD December 2011
Double Coin Holdings Ltd. and the China Manufacturers Alli-ance LLC (CMA) introduced
their FT125 Super Wide low rolling resistant trailer position tire at the 2011 Specialty Equipment Market Association (SEMA) Show in Las Vegas, Nev.
The FT125 will be the fourth Double Coin addi-tion to the Environmental Protection Agency’s Smart-Way Verifi ed Technology list. Aaron Murphy, vice president of CMA, says the wide-base tire meets the SmartWay threshold, and has been sub-mitt ed to the government for certifi cation.
“It’s what fl eets and OEMs in North America have been asking for,” he adds.
Another Double Coin wide-base tire is on the way. In early 2012, the FD425 Super Wide drive tire will be added to the company’s fuel-effi cient, SmartWay-verifi ed truck tire line, which includes the FR605, FD405 and the FT105.
Th e new FT125 is engineered with an advanced tread compound and a low profi le design to maximize durability while
providing optimal fuel savings. It has a tread depth of 16/32nds-inch.
Th e tire has a maximum carrying capac-ity of 10,300 pounds (Load Index 161).
Th e following low rolling resistance drive and trailer tires, broken out by brand, also are SmartWay verified when used on Class 8, line-haul trucks.
A r i s u n : D r i v e C M 9 8 3 ; Tr a i l e r CR915.
B F G o o d r i c h : Drive ST244; Trailer TR144.
Bridgestone: Drive M720, Greatec M835, Greatec, S803WZ, S803Z , S718W Z and S718YZ; Trailer
Greatec R135, R195, R197 and S197.Continental: Drive HSL1 Coach, HDL
ECO Plus, HDL2 ECO Plus, HDL2 DL ECO Plus, HDR, HDR1 ECO Plus, HSR, HSR1, HSR1 ECO Plus, HSR2, HSR2 ECO Plus and HSR2 SA; Trailer HTL ECO Plus and HTL1.
Dunlop: Drive SP456 FM; Trailer SP193 FM.
Falken: Drive BI887 Ecorun; Trailer RI119 Ecorun.
Firestone: Drive FD695 PLUS; Trailer FT455 PLUS.
General: Drive D660, S371, S580 and S581; Trailer ST250.
Goodyear: Drive G305 Fuel Max AT, G305 LHD Fuel Max, G392 SSD and G572 Fuel Max; Trailer G316 LHT Fuel Max, G316 Fuel Max DuraSeal and G394SST.
GT Radial: Drive GT669+ FS; Trailer GT979 FS.
Hankook: Drive AH24, DL11 and Z35A; Trailer TL01.
Kumho: Drive KLD01e and KLD02e; Trailer KLT02e.
Michelin: Drive XDA Energy, XDA3, X-One XDA, X-One XDN2 and X-One XDA Energy; Trailer XTA Energy, XT1, X-One XTA and X-ONE XTE.
Roadmaster (Cooper): Trailer RM871.Sailun: Drive S768 EFT (size 11R24.5).Sumitomo: Drive ST938SE; Trailer
ST710SE.Toyo: Drive M657; Trailer M157.Triangle: Drive TRD01.Westlake: Drive CM983; Trailer CR915.Yokohama: Drive 703ZL, TY517mc2
and TY577; Trailer RY407, RY587 and RY587mc2. ■
Wide-base tires
Double Coin doubles upTh e FT125 Super Wide replaces dual tires on the trailer axle
The Double Coin FT125 Super Wide is available in one size: 445/50R22.5.
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MTD December 2011
By Roger McManus
T he broadly held defi nition of the diff erence between small business ownership and entrepreneurism boils down to a single word: “growth.” Increasing
sales is not, by itself, growth. Growth does not mean selling more tires. Growth means
expanding the scope of your business to the point that you have more customers for diff erent products and diff erent products for the customers you have.
Growth, defi ned appropriately, is the key diff erence between thinking like a small business person (you have a job — being the boss) and thinking like an entrepreneur (you have an asset — your job is to maximize its value).
Growth in this context can be most easily described as the diff erence between selling more tires and auto repair services and owning more locations or having more bays at the one you have. Learning about how to grow your tire
business off ers many obstacles. Sadly the greatest obstacle that tire dealers have is — themselves.
So what are the obstacles that involve “the boss”? Th ere are several:
“Egocentric” thinking. “If I don’t like it (understand it, want it, love it) my customers won’t either.” Unfortu-
nately, there are very few ways to test your “rightness,” so opportunities get overlooked that could mean growth for your business.
Th e “cure” for this has a range of options. At the lower, less expensive, end is to partially or fully remove yourself from the decision process. Ultimately, this is your goal anyway, and this might be an easier test than some others. Appointing other members of your team to review new products or services or even actively research them can be a learning and liberating experience.
On the more expensive end of that spectrum is to conduct formal marketing research. Larger companies will not make a decision without this. As you grow, your decision-making process will become more sophisticated. But, as a starting point, not being “too smart” will move you forward on the growth curve.
“Don’t sell me” thinking. Somewhere the door-to-door bible (or whatever) salesman has ruined your hearing. Any time that you are approached with an idea that involves someone collecting a check, you turn a deaf ear. How many opportunities have you missed because you view salespeople as “hucksters” rather than educators?
Th ere are some people out there who sell things that are not worth what they cost. Th ey are called “con men.” Obviously, you must protect yourself from them by making logical, critical decisions. If, however, you shut yourself off from all salespeople, you are very likely missing opportunities. Th e old expression, “Nothing hap-pens until somebody sells something,” is absolutely true. A diff erent twist, however, is, “Nothing can grow until new ideas are introduced.”
Keeping yourself insulated from salespeople is a risky policy. Going to a trade show only to visit old friends
is a waste of time. Locking your door and hiding behind a gatekeeper is shielding yourself from possible new ideas.
Of course, you need to manage your time so you can set the rules of engagement. You might even ask a salesperson to answer two questions in writing before accepting the appointment: 1) What is the product or service you are selling? and, 2) How will it save me time or make me money?
Business insight
Your own growth trapHow to overcome the greatest obstacle to your
dealership’s success — yourself
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You don’t want or need a masters thesis from the sales-person, but it does set the tone. Even if you have delegated the purchasing process to others, you may suggest (or insist) that they use it.
The bottom line is this: If you re-frame salespeople as teachers instead of annoyances, you will learn things you may never have learned soon enough to take advantage of them. You don’t even have to buy anything. Just commit to hearing.
“I don’t have time for what I do now” thinking. You refuse to listen to anything new because you are too busy “working.” Opportunities to grow your business get sidestepped because you are emotionally blocked by the apparent mountain of minutiae before you.
Everybody is busy these days. But, entrepreneurs are busy learning what is possible.
Small business people are busy working at what they have in front of them. You will never own an asset if you are too busy with your “job.”
“Inside the box” thinking. You opened (or inherited) a
tire business. It is what you “do.” Anything that falls outside of your self-defi ned box is not what you “do.”
You spend most of your time at the Specialty Equipment Market Association (SEMA) Show and the Tire Industry Association’s Global Tire Expo (GTE) visiting with old friends because you already know everything you need to know and “those people on the show fl oor are ‘just trying to sell me something.’”
It happens so oft en that the “veterans” in a business are just too smart. Everything they need to know is already in their heads and everything is working “just fi ne.”
“Just fi ne” is defi ned by the limits of imagination. Sam Walton was doing “just fi ne” with a successful store in Arkansas. He was earning enough to be happy, feed his family and take care of his employees and customers. He could have just stopped with that and been “just fi ne.”
Th e trap. Limitations on growth are signifi cantly more a function of mental approach than resource limitation. Resources can always be found to foster growth if one sets one’s mind to it.
What is hindering your growth? ■
Roger McManus is author of “Entrepreneurial Insanity in the Tire Industry,” a recently published book that challenges business owners to examine why they opened their businesses and explore whether they are achieving the personal fr eedom that business ownership was supposed to deliver. “Entrepre-neurial Insanity in the Tire Industry” is available at www.TireIndustry.org or directly fr om Amazon. You can write to McManus at [email protected] or read more at www.Th eTireBusiness.biz.
Checklist for entrepreneurial thinking
1. What did I hear today that might be part of my future that is not part of my present?
2. What did I not have time to consider because I was “too busy”?
3. What can I delegate to others that would give me time to focus on growth?
4. How can I track new ideas that come to me or those I have assigned to discovering them?
5. What steps have I taken today to move me from think-ing “small business” to thinking entrepreneurially?
6. When and where is the next national or regional show or other professional convention and what are my objectives for going?
Achieve business ‘freedom’ by refocusing your attentionMcManus tells all at the Global Tire Expo in Las Vegas
Tire dealers need to make their businesses work for them, instead of the other way around. That was the message from business consultant and Modern Tire Dealer contributor Roger McMa-nus during the Global Tire Expo’s “Management at 4” session titled “When Will You Be Finished?”
McManus said shop owners must refocus their attention on how to achieve what all true entrepreneurs
want from their business-es: freedom. To achieve personal freedom, shop owners must make their businesses as valuable as possible.
In order to do that, they must circumvent barriers to value, including having an arrangement where em-ployees need the owner, and the owner loves being
needed. This situation may make the owner feel good, but the shop can’t run without him or her.
A shop that runs on its own is go-ing to have more value. McManus outlined steps that can help make that happen: make a decision; clear the path; chart a course; pick your team; build your dashboard; and start disappearing.
“If a tire dealer wants to own an asset, which is much more valuable than a job, he needs to know what it’s going to look like when it is complete — in other words, fi nished.”
See more on the Global Tire Expo, part of the Specialty Equipment Market Association Show, on pages 18-26.
McManus: “Have an asset, not a job.”
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MTD December 2011
By Doug Trenary
L ast month, I challenged you as an owner or manager of an independent tire dealership to deal with the hardest part of the people-side of your business:
implementing real change in your team’s behavior. How do you coach each employee to perform at a higher level where they tap into new insights and maximize talents — and then generate higher results?
Th is article is an extension of those ideas and was sparked by a conversation I had with Bob Ulrich, editor of this magazine. We were talking about some key ideas that readers were really responding to, and he said to me, “I saw something very interesting out in California. When we did the photo shoot of Mountain View Tire and Service Inc. at their headquarters for the Tire Dealer of the Year edition (September), I went into Mike Mitsos’ offi ce — one of Nick’s three sons — and he had some quotes of yours up on his wall.” I asked Bob to tell me more — and then I remembered — Mike himself had told me about this in February. His story is about making the “big transfer” of ideas into actions (the actions and habits of your employees) and what real impact that has on the business.
Transfer ideas into actionsMike and Chris Mitsos att ended my SalesMind session
at the Goodyear Dealer Conference in January of this year.I can remember these two eager guys — Mike and
Chris — coming up aft erwards and saying to me, “Man, we got some great ideas — and we’re going to go back and apply them at our business.”
Now, there were hundreds of att endees at these sessions, so honestly, I kind of said to myself, “Oh sure, everybody says that, but only a few do it (apply the ideas). We’ll see.”
Well, I followed up with Mike in February. This is when he told me about his bulletin board (see photo in sidebar) — and how he posted quotes on it pulled from the detailed notes he took at my session in Dallas. And that at Mountain View Tire, they were already digging into and teaching the ideas at their leadership and sales meetings. Wow! Th is is the whole key — I’m going to call this “training into trophies.”
Here’s what I want you to take away from this discussion:
• Lots of people go to seminars, enjoy them, and even take notes. Th ey then go back to their tire dealership, put the notes down, and “get back to business.”
• Th e power they put into the “training fi le” and miss in those notes is the same power they need to transform their business — but the notes become out of sight, out of mind. Th at’s actually normal, but I don’t write this column to share ideas with you so your tire dealership can be normal. “Normal” to me means under-performing.
• Occasionally, you have special (SalesMinded) business people who hold onto those seminar notes, and then publish them to really deploy with their store teams (like Mike’s board), incorporate them into their training and coaching, and then expect them to be put into action for that store or facility to be the best it can be — to maximize sales and profi ts. Th ese kinds of businesses understand the power of shaping people (and helping them change) to be the best — second-best is simply not good enough.
I’m going to leave you with this question: Does the habit that an att entive and focused seminar att endee — a leader — displayed with the valuable information he gathered (training) generate a clue for us of some of the kind of traits it takes to be the best in the tire business (trophies)? I’ll let you be the judge of that. ■
Doug Trenary, president of Doug Trenary’s Fast-Track Inc., is an award-winning author, speaker and teacher who has helped companies of multiple sizes, including independent tire dealerships, increase sales and productivity since 1985. His book, “Th e SalesMind,” focuses on how to establish strong positions with yourself, your buyers-and your time. For more information, email him at [email protected] or call (404) 262-3339.
Business insight
Turning training into trophiesSalesMinded dealers make the ‘big transfer’
SalesMind gold standardChris and Mike Mitsos of Mountain View Tire and Service Inc. based in Rancho Cucamonga, Calif., attended a seminar offered by Doug Trenary earlier this year. Upon returning to their dealership, they posted some of Trenary’s quotes on an employee bulletin board.
One of them (on the right side of the board) is “De-liver the lines under pres-sure when money is to be gained or lost.”
“This applies to all tire/service salespeople, whether retail or wholesale, vendors, suppliers, anyone,” says Trenary.
“I call this ‘the SalesMind standard for verbal communica-tion,’ meaning the most trained and skilled SalesMinds, when interacting with a buyer (which always has a natural pressure), have practiced so much that they are able to speak concisely and calmly to their buyer, close the sale, and capture the money, not lose it.”
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SUBJECT VEHICLE: 2007-10 Volkswagen EosRESET PROCEDURE? Yes. Directions follow.SPECIAL TOOLS NEEDED? No.
On 2007-10 Volkswagen Eos vehicles, the tire pressure monitoring system (TPMS) utilizes air pressure sensors in the wheels. Th e sensors transmit radio data signals to the Central Locking and Antitheft System antennas. Th ese signals are then directed to the TPMS Control Module, which is integrated with a diagnostic address in the Comfort System Central Control Module.
Th e system checks the tire pressures of all four road wheels, and warns in the event of a loss of pressure by means of symbols in the instrument cluster displays. A visual and audio warning will signal a rapid loss of pressure while the vehicle is moving. Th e system uses sensors at the wheels, which are integral parts of the air valves.
To remove an old sensor, follow these steps. CAUTION:
Replace the valve core each time the tire is changed. Use only original valve inserts from the manufacturer, as they have a special coating.
1. Remove the tire and wheel assembly from the vehicle. CAUTION: Use only original valve caps from the
TPMS
Replace tire valve cores on the Volkswagen Eos Adjust air in all tires before resetting the TPMS
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manufacturers. Do not use Comfort valve caps and metal caps.
2. Unscrew the union nut. See Figure 1.3. Remove the tire pressure sensor from
the rim well.
To install a new sensor, follow these steps.
1. Install a new sealing ring and washer on the tire pressure sensor. Insert the sensor and press it into the disc wheel (rim). See Figure 2.
2. Install the union nut.3. Press the tire pressure sensor onto the rim well,
and tighten union nut to 71 in. -lbs. (8 N.m.). Th is will cause the sealing washer to become slightly deformed (see arrow in Figure 3).
4. Install the tire and wheel assembly to the vehicle.5. Adjust infl ation pressures of all tires, and balance.
Store the new tire pressures in the system.
Get ready, set... reset!Now you are ready to perform reset procedures.
NOTE: Whenever a wheel is changed or replaced, or whenever a vehicle has been loaded, the TPMS needs to be reset.
When the low tire pressure warning light comes on, immediately check the air pressure of all tires and adjust to the specifi ed pressure. Th en, reset the TPMS. CAUTION: Do not reset TPMS until all problems are fi xed and tire pressures in all tires have been adjusted. If the reset procedure is done when tire pressures are incorrect, the TPMS will not work properly and may not set an alert when a tire pressure is low or high.
1. Set the tire pressure of all wheels to the specifi ed pressure.
2. With the vehicle stopped and the parking brake applied, turn the ignition switch to the ON position.
3. Press the SET butt on (located near the gear shift ) until an audio signal is heard. Th e signal confi rms the basic sett ing.
To reset the TPMS aft er a wheel or pressure change:
1. Set the tire pressure of all wheels to the specifi ed pressure.2. With the parking brake applied, allow the vehicle to stand
for 20 minutes so that the control module enters the learn-ing mode. NOTE: An acceleration data check also occurs with vehicle speed. Th is process takes about seven minutes.
3. Drive the vehicle at 16 mph or more. As soon as the vehicle reaches this speed, tire pressure sensor IDs are automatically recognized and read by the control module.
To reset the TPMS on wheel sets with diff erent pressure specifi cations, follow these steps. NOTE: If unap-proved wheel/tire combinations are installed, a second wheel set must be learned.
To perform this procedure, Volks-wagen VAS 5051B is required.
1. Read out the tire pressure sensor IDs before installation.
2. Switch TPMS to the sec-ond wheel set.3. Enter the needed specifi ed
tire pressures and sensor IDs into the system. ■
Information for this column comes from Mitchell 1’s ”Tire Pressure Monitoring Systems Guide” for domestic and import vehicles through 2010. Head-quartered in Poway, Calif., Mitch-ell 1 has provided quality repair information solutions to the auto-motive industry for more than 80 years. For more information, visit www.mitchell1.com.
Figure 1
Figure 2
Figure 3
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MTD December 2011
Your turn
‘High tire prices are causing harm to many who can least aff ord it’ Dear Editor:
Concerning your November edito-rial “Are tire prices too high? I say yes.”
Interesting article. You are right, prices are too high and retail marketing has become very creative. Retailers have had to come up with some prett y clever ways to get consumers’ att ention. Nothing new there, it is an American tradition. Th ey must meet their bott om line goals, so there is profi t in these schemes; of that we can be sure.
Facts are, the American consumer had better get used to higher prices, and not only on tires. Our government is poised to place tariff s on many goods coming from China. Th e Chinese 421 Tariff (set in motion by President Obama’s paying back the labor unions), was the catalyst creating the tire industry’s situation. Th e cost of materials has and will continue to create pressure as global demand increases. It is basic supply and demand. Th e fl ooding in Th ailand the past two years does not help matt ers, either.
Today’s tire consumer is going through sticker shock . Many can’t aff ord even the least expensive tires today, and used tires are selling at a premium. Th e focus should be on road safety concerns due to worn and unsafe tires. It would be interesting to see what the accident frequency rate is for “non-dry” road conditions from 2008 through 2011.
Also, have you wondered what the roadside assistance statistics are for tires during this same period? And have you experienced being passed by a vehicle driven on a space saver spare at 70 mph? It is all too frequent nowadays.
Th ese were the predictions made by those who opposed the 421 Tariff , including myself. No surprises from this chair, and, like you, I feel high prices are causing harm to many who can least aff ord it. Th e pricing model may change when the 421 has run its course. Time will tell. It is a main topic of conversation and my crystal ball in unclear on this point.
One thing is for sure, the tire industry, like the weather, is unpredictable and we have come to expect the unexpected going into 2012. Price reductions, if they come, will create their own set of problems. Inventory write-downs are painful at all levels....
Keep up the great writing and I look forward to your next article.
Pat McLaughlin, PresidentSURE Tire Co.
Wentzville, Mo.
Th e downside of the Google societyDear Editor:
In reference to Wayne William’s October article on “Be careful, Google is smarter than you think”:
Th e downside of this “Google” society, of course, is that you get to do the sales job twice to justify why you are charg-ing more for the same tire the customer is looking at on the Web from a Tire Rack or a Discount Tire store, etc., or why “Consumer Reports” says the tire should cost $60 when you need to sell it for $98.
Yes, you bett er be able to handle the situation when the customer changes his mind.
Ed Miller, OwnerEd’s Tire Factory
Medford, Ore.
Th anks for sharing survey resultsDear Editor:
In your October magazine, you had an article on tire-related comebacks (“Th ose dreaded comebacks — Dealers are po-tentially losing $153 million in revenue!”).
Th is is a hot topic within our industry. Why do comebacks occur and what can dealers do to prevent returns? As pointed out in your article, bett er service practices (and training) go a long way to help prevent returns.
Your article and survey both hit many of the topics that our group studies for Goodyear: wrong or missing weights, technician-related, bent rim, pre-existing vehicle condition, or tire-related issue. Specifi cally, one of my main focuses is on the relationship between technician and tire.
Th e responses from the dealers on techni-cian errors show us that there is room for improvement in this area.
Doing everything in the best possible manner in the fi rst place is the best ap-proach to preventing comebacks. If there is a comeback, having a solid procedure is the best foundation for fi xing the issue.
Your article was spot on and informative for those who have not yet heard or thought about the issue.
Th anks again for bringing up the issue and sharing the survey results.
Michael Gerowitz, Regional Engineer - Service ResearchGoodyear Tire & Rubber Co.
Akron, Ohio
Join Modern Tire Dealer’s National Advisory CouncilEach month, Modern Tire Dealer is guided and infl uenced by a select group of readers — members of our National Advisory Council. Th ese members’ opinions are the heart of the monthly Ludwig Report, compiled by well-known industry analyst Saul Ludwig. If you’d like to join this prestigious group, please let us know. We’d love to hear from you. Contact Editor Bob Ulrich at [email protected] or call (330) 899-2200, ext. 11.
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