modern tire dealer feburary 2011

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THE INDUSTRY’S LEADING PUBLICATION FEBRUARY 2011 • VOL. 92, NO. 2 • TEN DOLLARS • A BOBIT PUBLICATION New tire mounting/balancing equipment eases performance tire service The chaotic world of OTR tires From cosmetic to tuner to... UHP?! The evolution and the overlapping in the performance segment Call for entries: Modern Tire Dealer’s Tire Dealer of the Year

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Magazine for the professional tire industry

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Page 1: Modern Tire Dealer Feburary 2011

THE INDUSTRY’S LEADING PUBLICATION

FEBRUARY 2011 • VOL. 92, NO. 2 • TEN DOLLARS • A BOBIT PUBLICATION

New tire mounting/balancing

equipment eases performance tire service

The chaotic world of OTR tires

From cosmetic to tuner to... UHP?!The evolution and the

overlapping in the performance segment

Call for entries: Modern Tire Dealer’s Tire Dealer of the Year

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Page 2: Modern Tire Dealer Feburary 2011

Quik-Link: 800-687-1557 ext. 12101

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Page 3: Modern Tire Dealer Feburary 2011

3www.moderntiredealer.com

Modern Tire Dealer is a proud member of:

TIRE RETREAD & REPAIR INFORMATION BUREAUTRIBTRIB

MemberAn Industry Association

Features18 From cosmetic to tuner to... UHP?!

Rick Brennan explains the evolution and the overlapping in the performance segment

28 Times they are a-changin’New tire mounting/balancing equipment eases service

Commercial Tire Dealer™31 Th e chaotic world of OTR tires

Global tire segment is extremely dependent onmarkets abroad

34 Tire restorationNew type of shoulder repair could save money and time

4 EditorialIs Tire Rack your competition?

6 OnlineCall for entries for MTD’s Tire Dealer of the Year

8 News/viewsA new and improved Mr. Tire — K&M Tire wants to grow program ‘like crazy’

16 Ludwig ReportLook for a renewed consumer focus on performance vs. price

38 Counter intelligenceThe ‘Zat Method’ in practice — Taking the positive approach proves profi table

40 Focus on industrySurviving and thriving — Kumho makes necessary changes in 2010

42 TPMS2005-10 Nissan Frontier service requires a variety of tools

44 Products

46 Quik-Link

48 Classifi ed

Th e Industry’s Leading PublicationFebruary 2011, Volume 92, Number 2

Departments

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MTD February 2011

The Tire Rack is an inde-pendent tire dealership. Its business model may

be diff erent from yours, but the owners have complete control over it.

Is it really your competitor? I raise the question because I have heard many dealers grumble over the years about Tire Rack. Its mail-order format makes it a tire dealer with a nationwide reach.

In that sense, the answer is “Yes, Tire Rack is your competitor.” Anyone who wants to buy a tire from Tire Rack could buy that same tire from you.

If the customer wants to buy a tire and wheel package, mounted and balanced, from Tire Rack, he can.

However, the customer still has to have the tires installed, which is an opportunity for you to make a litt le money. Tire Rack has a network of “Rec-ommended Installers” that can perform the work. In my area, Akron, Ohio, they include independents such as Tire Source and Conrad’s Tire Express & Total Car Care; Goodyear company-owned stores; and a custom trim shop.

How many of you have ever used Tire Rack as a wholesale distributor, especially when you need an exotic size? Th at makes Tire Rack your partner.

As you can see, the line between competitor and supplier is blurred when it comes to Tire Rack.

How much competition do car dealerships bring to our market? Th ey own 6% of the consumer tire retail market share in the United States (see chart below), double what it was in 2004.

Ford Motor Co. has been particularly active selling tires, both at its franchised dealerships and Quick Lane Tire & Auto Centers chain. Ford claims it sold 1 million tires through its Quick Lane outlets in 2010.

Earlier this month, the vehicle manufacturer opened its 600th Quick Lane outlet, which sells 11 diff erent brands.

I was at the grand opening of Hennelly Tire & Auto Inc.’s 30th store in upscale Oakland Park, Fla., last November. “In that neighborhood, we really fi ght the Mercedes and Lexus dealers, not Tire Kingdom and Tires Plus,” Chairman and CEO Dan Hennelly told me.

Car dealerships, then, are one of your biggest rivals, right? Not so fast. Nearly 52% of the 30,000 independent tire dealers in the U.S. sell to car dealerships, according to a recent Modern Tire Dealer survey. To some of you, like Dealer Tire LLC, auto dealerships are your customers.

Th e strength of mass merchandisers is not what it once was. Th eir market share has dropped from 18.5% to 14.5% in

the last 15 years. But Sears Holdings Corp. has been working on turning that trend around.

For many years, Sears ran a huge newspaper advertising campaign focusing on tire prices at its nearly 850 Sears Auto Centers. Th e cur-rent campaign, while still pricey, has been watered down. Th e ads not only run in fewer papers, but also less frequently. And they don’t push pricing (Sears off ers nine tire brands).

As a Sears rep recently told me, by running a lot of tire sizes and prices, you take the risk of alienating customers who concentrate on the price, not the size. So Sears emphasizes specials, such as “Buy three and get one free.”

Sears, under its Sears Authorized Independent Auto Centers LLC subsidiary, began its franchise program in 2010. Th e company says the program “off ers automobile dealers the opportunity to operate licensed Sears Auto Centers, bringing the Sears brand, buying power, distribu-tion network, systems and corporate support to automotive aft ermarket businesses.”

Sears also introduced a fl eet strategy last year in an eff ort to grow the commercial side of its automotive business.

The competitive nature of the tire industry — at all levels — continuously changes and evolves. Th ere is one constant, however. Independent tire dealers dominate tire sales in the aft ermarket.

You represent 60% of consumer tire retail sales in the U.S., and control 76% of consumer tire aft ermarket distribution. You are number one. ■

If you have any questions or comments, please e-mail me at [email protected].

Editorial

Is Tire Rack your competition?

By Bob Ulrich

Ford claims it sold 1 million tires through

its Quick Lane outlets in 2010.

U.S. CONSUMER TIRE RETAIL MARKET SHARE

(based on retail sales)

Distribution channel 2010 2009

Independent tire dealers 60.0% 60.0%

Mass merchandisers 14.5% 14.5%

Warehouse clubs 9.5% 9.5%

Tire company-owned stores

7.0% 7.0%

Auto dealerships 6.0% 5.5%

Service stations 1.5% 2.0%

Miscellaneous outlets 1.5% 1.5%

Source: 2011 Modern Tire Dealer Facts Issue

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MTD February 2011

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 RUNION [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

Online

Call for entries!Nominations are now open for Modern Tire Dealer’s 2011 Tire Dealer of the

Year award! Simply click on the link to our nomination form on the right hand side of our Web site’s home age. (A mail-in nomination form also can

be found on page 27 of this issue.)Our Tire Dealer of the Year program was started in 1993 and remains the tire

industry’s most prestigious honor. Th e 2011 Tire Dealer of the Year will be featured in a cover article in the September

issue of Modern Tire Dealer. And in recognition of this achievement, MTD will donate $1,000 to the winner’s fa-vorite charity. MTD has do-nated more than $130,000 to charities since the Tire Dealer of the Year program’s inception.

Past winners have been John Snider, Snider Tire Co. (2010); Bill Ziegler, Ziegler Tire & Supply Co. (2009); Ken Towery, Ken Towery’s AutoCare Super-Center (2008); Charlie Creighton, Colony Tire Corp. (2007); Bill Wil-liams, Jack Williams Tire Co. (2006); Paul Zurcher, Zurcher Tire Inc. (2005); Bob and Juanita Purcell, Purcell Tire & Rubber Co. (2004); John Mar-shall, Grismer Tire Co. Inc. (2003); Tom Raben, Raben Tire Co. (2002); and Larry Morgan, Morgan Tire & Auto Inc. (2001). Th e late Les Schwab, founder of Les Schwab Tire Centers, was our Tire Dealer of the Year in 2000. He was preceded by Raynal Pearson, Pearson Tire Co. (1999); Tom Gegax, Team Tires Plus Ltd. (1998); the late Walt Dealtrey Sr., Service Tire Truck Centers (1997); David Stringer, Stringer Tire Co. (1996); Tony Troilo, Rosson & Troilo Motor Co. (1995); Jerry Bauer, Bauer Built Inc. (1994); and Barry Steinberg, Direct Tire & Auto Service (1993). All of the winners’ stories also are archived on www.moderntiredealer.com.

Nominate yourself, nominate another deserving dealer — all independent tire dealers are eligible for the award except our previous winners.

It’s quick and easy at www.moderntiredealer.com.

For last year’s winner, Modern Tire Dealer donat-ed money in John Snider’s name to the Greens-boro, N.C., chapter of The Salvation Army, being represented here by Major Paul Egan (right).

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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Page 8: Modern Tire Dealer Feburary 2011

MTD February 2011

By Bob Ulrich

The Mr. Tire retail program was not the only reason K&M Tire Inc. purchased Triton Tire & Bat-

tery from Universal Cooperatives Inc. last November. Five warehouses and a strong foothold in the Midwest were incentive enough to make the deal.

“Th e program was a part of the equation,” said Ken Langhals, president of K&M Tire. “Th e main reason we were interested was the distribution in the Midwest. Ag tires were a big part of it.”

Still, K&M executives believed the under-utilized program had the potential to double in size by the end of 2011, from 191 members to nearly 400. So that was their focus to dealers at the K&M Tire Expo, held in Red Wing, Minn., last month.

“Our goal is to make Mr. Tire one of the strongest tire programs in the country,” said Mike Perkins, marketing and programs manager. He announced several changes to the program, including a new logo and fi ve additional tire brands: Goodyear, Dunlop, Kelly, Continental and General. Mr. Tire dealers will continue to have access to the Cooper, Hankook and Dean brands.

“We know the brands are critical for the growth.” Th ere are more brands to come, he said. As part of the program, two Mr. Tire nationwide road hazard service warranties will be available to consumers: Gold (pro-rated) and Platinum (free replacement).

K&M Tire is a “fi rm believer” in brand supported retail advertising, according to Perkins. Mr. Tire members also will be able to sell tires over the Web, although that feature is still being fi ne-tuned. “We are still looking at a way to show custom-ers your inventory.”

Perkins said K&M Tire has work to do combining Triton Tire’s fi ve warehouses with its own to create one distribution network.

Th e company has 11 distribution centers in nine states: Ohio, Michigan, Illinois, Wisconsin, Minnesota, North Dakota, Nebraska, Kansas and Arkansas.

Some of the new warehouses it purchased are too small. Th e company needs trucks and truck drivers. And it needs inventory.

Th e new logo will be eased into existing dealerships (for a look at the Mr. Tire logo through the years, check out Modern Tire Dealer’s Facebook page). K&M Tire also plans to keep the 2010 Mr. Tire pricing program in place through 2011.

“We’re working diligently to revitalize this program,” said Perkins. “We’re going to add stability to it. We’re going to grow the program like crazy.” ■

News/views

A new and improved Mr. Tire K&M Tire wants to grow program ‘like crazy’

Mike Bicknell, left, vice president of Mitas brand sales for Mitas Tires North America Inc. (formerly CGS Tires), talks with Mary Ann and Curtis Kaiser at the K&M Tire Expo. Curtis is shop foreman for Central Dakota Frontier Co-operative in Napoleon, N.D.

Mr. Tire vs. Mr. TireBefore it sold the program to K&M Tire Inc., Universal

Cooperatives Inc. licensed the name to Monro Muffl er Brake Inc.

According to Monro chairman and CEO Robert Gross, the open-ended agreement gives him exclusive rights to the Mr. Tire name west of the Mississippi, with two exceptions.

• Monro shares the rights with K&M in Ohio.• The rights in Illinois are exclusive to K&M.

Monro operates approximately 130 Mr. Tire retail stores in the mid-eastern United States, with plans to expand.

“Our preference is to get (the name) back, where we have total control over Mr. Tire,” says Ken Langhals, K&M president.

8

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MTD February 2011

News/views

Toyo withdraws from the GTY Tire Co.Th e lawsuit pitt ing Toyo Tire Holdings of Americas Inc. against Continental Tire the Americas LLC and Yokohama Corp. of America is over.

Toyo says it has reached an agreement sett ling all claims relating to the case, captioned “Toyo Tire Holdings of Americas Inc. v. Continental Tire of North America, Inc., et al. (Case no. SACV 10-00052 JVS). As a result, the pending lawsuit and related arbitration has been dismissed, and the injunction entered by the District Court in California in 2010 has been dissolved.

Under the terms of the sett lement agreement, Toyo has agreed to withdraw from the GTY Tire Co. “in consideration for the parties’ mutual release of all claims. GTY was a joint venture formed by the three parties in 1988. Located in Mount Vernon, Ill., the plant has the capacity to produce 7,300 truck tires a day, according to the 2011 Modern Tire Dealer Facts Issue.

In addition, pursuant to the agreement, Continental and Yokohama agreed to produce “a certain quantity of truck and bus radial tires” for Toyo at the facility, which Toyo may purchase from GTY monthly for approximately the next year.

TIA schedules training programs in 2011Th e Tire Industry Association (TIA) has released its 2011 dates for its Automotive Tire Service (ATS) and Commercial Tire Service (CTS) Certifi ed Instructor programs.

Th e scheduled dates for the 2011 ATS are:

Baltimore, three-day: March 29-31 and Oct. 18-20.Baltimore, four-day: March 29-April 1 and Oct. 18-21.Denver, three-day: May 17-19 and Dec. 13-15.Denver, four-day: May 17-20 and Dec. 13-16.

Th e newly revised ATS program combines in-depth classroom instruction with comprehensive, hands-on education. Students who successfully complete the program are prepared to return to their companies and impart that knowledge to their fellow employees by conducting in-house Certifi ed ATS Technician or Instructor classes.

Th e scheduled dates for the 2011 CTS are:

Baltimore, three-day: Feb. 22-24 and Sept. 13-15.Baltimore, four-day: Feb. 22-25 and Sept. 13-16.Denver, three-day: April 5-7 and Nov. 15-17.Denver, four-day: April 5-8 and Nov. 15-18.

Th e CTS program utilizes classroom instruction with hands-on learning and meets the requirements laid out by OSHA Standard 29 CFR 1910.177. Students who successfully complete the CTS Instructor program are qualifi ed to certify technicians in the fi eld.

“Both TIA’s CTS and ATS Instructor Programs have been updated within the past two years,” says Roy Litt lefi eld, TIA’s executive vice president. “Th is means that technicians have the opportunity to receive the most comprehensive and up-to-date instruction on the latest tire service techniques.

“TIA’s training programs are widely considered to be among the best in the world, and a TIA Certifi cation can benefi t the technician, the shop owner, and the motoring public.”

Persons interested in att ending these classes can register by visiting the “Training & Education” section of TIA’s Web site, www.tireindustry.org, or by calling (800) 876-8372.

Quik-Link: 800-687-1557 ext. 1210510

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MTD February 2011

News/views

Manufacturers announce tire price increasesCooper Tire & Rubber Co. is raising prices 2.5% on its passenger and light truck tires. Th e increase went into eff ect Feb. 1. As has been the case in the past, back orders will not be protected. Th e reason is the “unprecedented levels of infl ation in raw material costs,” according to the company.

Also on Feb. 1, Michelin North America Inc. raised consumer tire prices. Th e price hikes “vary by product line.”

Bridgestone Bandag Tire Solutions also has instituted a 12% price increase on its Bridgestone and Firestone brand radial truck and bus tires in the U.S.

In addition, Nexen Tire America Inc.’s tire prices were increased up to 8% eff ective Jan. 1.

New name for CGS Tires: Mitas Tires North AmericaCGS Tires US, Inc., the U.S. subsidiary of Czech-based CGS Tyres, has changed its corporation name to Mitas Tires North America Inc., and will relocate its main U.S. offi ce from North Carolina to Charles City, Iowa, where the company is building a new tire factory that will start producing agricultural radial tires in 2012.

Th e company made the initial announcement for the move at the Farm Progress Show in Boone, Iowa, last August, and said that development is proceeding according to plan.

Michelin offers warranties on winter tires in the U.S.Michelin North America Inc. is backing its Michelin X-Ice Xi2 and Latitude X-Ice Xi2 tire lines with a 40,000-mile tread wear warranty. Th is is the fi rst time Michelin has provided such a warranty on winter tires in the United States.

In addition to the tread wear limited warranty, the Michelin X-Ice Xi2 and Latitude X-Ice Xi2 winter tires also are covered under the material and workmanship limited warranty. Both lines utilize advanced tread block technology — a combination of multiple sipes and micro-pumps with a state-of-the-art rubber silica-based rubber compound called FleX-Ice. Additionally, the tires are equipped with Comfort Control Technology, which utilizes computer-optimized design and precision manufacturing to reduce vibrations and road noise.

“Winter tires are designed specifi cally for winter usage and we do not recommend year-round use,” a company spokesman says. “As such, we do place a restriction that tires cannot be in service longer than the winter season (generally six months). However, for those who do generate high mileage in winter conditions, this tread life warranty is another value add from Michelin.

“We recommend standard rotation every 6,000 to 8,000 miles and, if consumers do not achieve 40,000 miles, any shortfalls will be credited toward a new set.”

Th e company is using 2/32nds as the “wear-out” point. If the consumer decides to replace the tires earlier in the tire life, he or she has made a choice to not exercise the benefi t of the tread life warranty coverage, the company states.

Titan makes moves to reduce debt by $59.6 million Titan International Inc. announced that on Jan. 19, 2011, it closed its Exchange Agree-ment for 5.625% Convertible Senior Subordinated Notes due 2017.

As part of the agreement, note holders exchanged $59,616,000 in aggregate principal amount of the convertible notes for 6,617,709 shares of the company’s common stock, plus a payment for the accrued and unpaid interest.

In addition, Titan’s total indebtedness will be reduced by approximately $59.6 million.

Kadrich retires from AAIALee Kadrich, vice president, gov-ernment affairs and trade for the Automotive Aftermarket Industry Association (AAIA), has retired af-ter 29 years. Kadrich served as staff liaison to the AAIA Government Affairs Committee and as executive director of two AAIA membership segments, the Auto International Association and the Heavy Duty Distribution Association.

Hankook sets plant goalsHankook Tire says that its new manufacturing plant in Bekasi, Indo-nesia, will enable it to become the world’s fifth largest tire company, achieving an annual output of 100 million units by 2014.

CGS Tyres expands in FranceCopadex and CGS Tyres have entered into an agreement where Copadex will cede exclusivity in distributing CGS-produced Conti-nental agricultural tires in France. CGS Tyres now sells all its brands in France, namely Mitas, Cultor and Continental (produced under license).

Conti’s China plant begins testingContinental AG’s new passenger tire plant in Hefei, China, has suc-cessfully begun trial production. The company says it will invest 180 million euros in the first phase, and final production volume will be 4 million tires per year. The company plans a transition to full commercial production by the end of March.

Bobit celebrates anniversaryBobit Business Media’s flagship mag-azine, Automotive Fleet, celebrated its 50th anniversary with a special issue in January. The magazine and the company were started in 1961 by Ed Bobit, and today the company publishes 19 magazines (including Modern Tire Dealer), 40 industry Web sites and 12 trade shows and conferences.

AKH hires Schaeper as presidentAKH Co. Inc., which does business as Discount Tire Centers in Califor-nia, has hired Michael Schaeper as president. He reports to Chairman Andy Andonian and Vice Chairman Hratch Andonian.

bites

For complete daily, even hourly news coverage of the tire industry, check out

Modern Tire Dealer’s Web site at www.moderntiredealer.com

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MTD February 2011

News/views

BATO reorganizes Consumer Tire Business divisionBridgestone Americas Tire Operations LLC (BATO) has reorganized its Consumer Tire Business management structure in the United States and Canada.

Th e fully integrated management structure “will facilitate continued growth and make the business even more customer-focused,” according to the company.

Th e reporting structure has been consolidated for the following areas: original equip-ment (OE); replacement/wholesale and retail consumer tire businesses in the U.S. and Canada; and Credit First NA (the company’s private label credit card business).

BATO also announced the new leadership team for the integrated Consumer Tire Business.

Larry Magee has been named president. He was promoted from chairman, CEO and president of Bridgestone Retail Operations LLC (BSRO).

John Baratt a is now vice president. He will hold the title concurrently with his position as president of replacement tire sales, U.S. & Canada, Consumer Tire Sales Division. Baratt a will report directly to Magee.

Complaint by associations leads to FTC AlertTh e Federal Trade Commission (FTC) has released an FTC Consumer Alert in response to a complaint fi led by the Automotive Aft ermarket Industry Association (AAIA), Tire Industry Association (TIA), and the Automotive Oil Change Association (AOCA).

Th e FTC Alert, entitled “Auto Warranties, Routine Maintenance and Repairs: Is Using the Dealer a Must?” was distributed in response to a lett er sent by AAIA, TIA and AOCA charging that Honda had issued a release which appeared designed to give car owners the impression that their warranty right would be jeopardized if they used “aft ermarket” parts. In its Aug. 25 lett er to the FTC, AAIA charged that the Honda statement was “in direct confl ict with the Magnuson-Moss statute,” which prohibits the conditioning of a warranty on the use of the manufacturer’s brand products.

AAIA also stated in the lett er that statements made in the Honda release regarding the quality of non-Honda parts were misleading to consumers. ■

SEMA HOF nominations openNominations are now open for the Specialty Equipment Market As-sociation (SEMA) Hall of Fame, the association’s highest honor. Nomi-nations are being accepted until March 16, 2011. Visit www.semahof.com for more information.

New dates for Frankfurt showThe dates for Automechanika Frankfurt 2012 have been changed to avoid a conflict with another trade show. The show will be held one week earlier, from Sept. 11-16, 2012, at Frankfurt am Main. For more information visit www.auto-mechanika.com.

YTC promotes key executivesYokohama Tire Corp. (YTC) has promoted several key executives as part of its management strat-egy: Dan King, to vice president of sales and marketing; Thomas Masuguchi, to controller and vice president; John Cooney, to director of export; Rick Phillips, to director of commercial sales; Minoru (Mike) Nakayama, to chief advisor, corpo-rate strategy and product planning; Percy Cottle, to zone manager, ex-port; and Andrew Briggs, to senior manager of motorsports.

Tyrexpo Africa 2012 setTyrexpo Africa 2012 will be held March 6-8, 2012, at the Sandton Convention Centre, Johannesburg, South Africa. There will also be a one-day tire conference during the event. For more information, see www.eci-international.com.

bites Industrial Tires Ltd. founder Tom Buckley diesTom Buckley, owner and founder of Industrial Tires Ltd. (ITL) in Toronto, Canada, died on Jan. 14. He was 78.

Under his direction, ITL grew from a localized importer and distributor of tires for material han-dling equipment into a globally recognized leader in specialty solid tire design and development.

Buckley began his career with the Goodyear Tire & Rubber Co. in the 1950s. He left Goodyear in 1958 to form his own Canadian-based import/distribution company.

In 1965 he signed a technology-sharing agree-ment with Monarch Rubber Co. (predating Teledyne Monarch) to introduce rationalized manufacture of tires for forklift trucks to Canada.

In 1978, ITL purchased the industrial tire division of the Uniroyal Tire Corp. and expanded direct marketing into the United States. Shortly thereafter, he acquired Teledyne Monarch’s remaining shares in ITL and focused on global expansion.

He later formed technical agreements with major European solid tire manu-facturing fi rms such as Gumasol (Gummi-Mayer Corp.) and Vorwerk. Ultimately, his direction led to the installation of a state-of-the-art solid tire manufacturing facility in China.

Buckley continued to direct the company as its CEO until 1997, when he sold the company to the Cascade Corp.

Tom Buckley, owner and founder of Industrial Tires Ltd. in Toronto, Canada.

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MTD February 2011

Gasoline prices seem to be in-creasing again with prices for regular north of $3 a gallon

almost everywhere. While I do not expect driving levels to be meaning-fully impacted anytime soon (unless gasoline approaches $4 a gallon), you should cite higher gasoline prices as a way to foster sales of fuel effi cient tires. Th ose tires, now available from most manufacturers, sell at a premium but with proper training (and maybe a spiff , too), your counter staff should be able to convince the customer of the benefi ts of those (higher margin to you) tires. During 2010 there was indeed some trading down by cash-strapped consumers, but 2011 may see a renewed focus on performance vs. price. For 2011, most economists are projecting a stronger economy. Additionally, 2010 was a strong year for the stock market, so consumers may soon be feeling bett er about their own fi nancial health than was the case last year. Strong Christmas sales were the most recent evidence of improving consumer spending.

Monthly survey

A number of independent tire dealers were surveyed concerning current business trends. Except for tire prices and costs, the results of the December 2010 survey are compared with those of December 2009.

Passenger tire dealers’ six-month outlook is mixedRoughly 50% of passenger tire dealers suspect business will

remain the same in the next six months, 17% expect improve-ment, while the remaining 33% think business will worsen. Conversely, 75% of all the truck tire dealers sense that in the next six months business will improve while 25% expect busi-ness to worsen. Th ese outlook comments tend to be seasonally directed rather than year-to-year comparisons.

All tire sales were higher in December

According to dealer reports, on average, retail sales of new replacement passenger tires were strong with many reporting as much as a 9% increase in December 2010 vs. December 2009. Some dealers we surveyed noted that traffi c was very good in December. Truck and retreaded tire sales were strong, increasing 8% and 13%, respectively, in December year-over-year.

Costs for major and private brand tires were up In comparing the month of December 2010 with November

2010, average costs for size 215/60R16 major brand tires were up 5% while selling prices were unchanged. Th e average costs for a 215/60R16 private brand tire were up 7% while selling prices were essentially fl at for the month. In light of further raw material cost increases, we expect manufacturers to again increase prices soon.

Pricing remained normal to fi rmIn December 2010, 66% of the passenger tire dealers described

pricing as normal, 17% perceived pricing as aggressive, while the remaining 17% of the passenger tire dealers thought pric-ing was fi rm. Conversely, 75% of truck tire dealers suggested pricing was very fi rm, while the balance of the truck tire dealers believed pricing was normal. We continue to expect that deal-ers will likely see less discounting as manufacturers att empt to raise prices.

Truck tire inventories are too low Th e survey suggests that passenger tire dealers view future

demand with some degree of uncertainty because their view regarding tire inventories was equally split with about 33% believing they were either too high, too low or in line with business conditions. Conversely, all truck tire dealers feel inventories are too low.

Service revenues are up, dealers reported Dealers who provide automotive service reported that 50%

of revenues, on average, were generated by service during December. Dealers indicated that service business was up over 12% in December 2010 vs. December 2009. Automoitve service business remained strong through most of 2010 for the surveyed dealers. ■

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

Look for a renewed consumer focus on performance vs. price

By Saul Ludwig

How dealers view their near-term businessDealers AUG SEP OCT NOV(R) DEC(P) DEC(09)

Passenger tireWill improve 40% 67% 33% 17% 17% 38%Will worsen 0% 0% 0% 50% 33% 8%Will stay level 60% 33% 67% 33% 50% 54%

Truck tireWill improve 50% 40% 0% 0% 75% 11%Will worsen 0% 0% 0% 33% 25% 0%Will stay level 50% 60% 100% 67% 0% 9%R-Revised P-Preliminary

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MTD February 2011

By Bob Ulrich

The top fi ve UHP sizes don’t even fi t sports cars. Th ey fit sedans.” That telling

comment from Rick Brennan, vice president of marketing for Kumho Tire U.S.A. Inc., speaks volumes about the evolution of the ultra-high performance tire segment of the market.

Twenty-fi ve years ago, there were four categories in the performance segment: ultra-high performance, high performance, performance and cosmetic. Th ere were no touring tires, and winter tires were only known as snow tires. Th e all-season tire seg-ment was calculated separately.

Today, there are no fewer than six categories, at least as they apply to traditional summer tires. For an apples-to-apples comparison of performance then and now, we will stick with tradition. Be aware that there is a lot of overlap between not only categories but also within segments (there are UHP winter tires, for example).

The Tire Rack breaks down summer passenger performance into extreme, max, ultra-high, high, grand touring and DOT track and competition. Tire Rack is credited with creating the max performance category.

“Max is what UHP used to be in 1985,” says Brennan, who refers to the present UHP category as more of a “value UHP.” Original equipment tires on sports cars such as the Porsche 911, or a Corvett e or Ferrari are max performance tires.

Extreme performance is the latest addition to the summer UHP tire segment. Th ese tires feature “race-like compounding,” says Brennan. Th e Falken Azenis Sport RT-215 was one of the fi rst extreme performance tires on the market.

According to Tire Rack, extreme performance tires are designed for customers who want extreme dry street performance and are willing to trade some comfort and hydroplaning resistance to get it. “Extreme is pushing it way past normal,” says Brennan. “It is geared toward dry performance, for high horsepower cars that have the best of everything.”

Modern Tire Dealer recently sat down with Brennan to talk about his views on the evolution of performance tires in general, and UHP tires in particular.

UHP tires

From cosmetic to tuner to... UHP?!

Rick Brennan explains the evolution and the overlapping in the performance segment

The tuner market in the 1990s changed the face of the UHP tire segment.

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MTD February 2011

UHP tires

“UHP used to defi ne a segment. Now it defi nes a speed rating,” he says. “And that doesn’t mean anything to the consumer. Th at’s why you are seeing all these mini-segments cropping up.”

Appearance vs. performance

In 1985, MTD defi ned a cosmetic performance tire as having no “speed” ratings (S- or higher). “Th ey are less expensive than their respective performance counterparts, but have the look of performance-enhanced tires.

“Th eir construction and tread design features do not qualify them as true performance tires.”

An example of a cosmetic performance tire was the El Dorado Custom Stock 60-series bias brand. “Th ere are many 70-, 65-, 60- and even 50-series, raised white lett er tires in this category,” we wrote.

“Th e 75-series, white sidewall, all-season radials are not considered cosmetic performance tires. Neither are most of the 70-series, white sidewall tires of the same type.”

“Back in 1985, you could defi ne UHP by the car, like the BMW M-Series or the Corvett e,” says Brennan. “Th ere were no more than 16 to 20 sizes, ranging from 195/50R15 up to 275/40R17.

“Cosmetic was still a performance tire, mostly 60 series, 15- inch tires. A 1957 Chevy with the big tires on the back, or a 1962 Chevy Impala came with cosmetic performance tires on them. Th ey didn’t have great grip, but they were physically wide.”

Fast forward to the early 1990s, when the import tuner craze

started to take off . To tuner car owners, the look of the tire was much more important than its performance.

“Honda Civic owners wanted big wheels, so they started plus-sizing. Th ey needed size 205/40R17 and 215/40R18 tires for the look they wanted, but nobody made those sizes in a cosmetic tire. Th ey were only available in UHP sizes.”

Th e result, says Brennan, was that UHP tires became, for all intents and purposes, cosmetic tires.

Plus sizing led to an increase in shipments of larger sizes, fi rst 225/40R18, then 215/35R19, then 225/30R20. At the same time, traditional V- and Z-rated UHP sizes were being off ered with H ratings.

As the SKUs and shipments increased, so did the price range.

“In the early 1990s, the price point zone for UHP tires started to stretch,” says Brennan. “Th e top selling UHP size in 1985, 225/50R16, was sold to dealers for between $120 and $250. In 1995, that same tire size was sold anywhere from $55 to $250.

“Th at led to new technology, and the fl agship tires evolved. And the max performance category was created.”

High performance tire brand share, 2010(High performance = 31.9 million units; UHP = 26 million units)

Brand HP UHP

Goodyear 16.5% 15.5%

Michelin 12.0% 14.0%

Bridgestone 8.0% 9.5%

Yokohama 8.0% 5.0%

Kumho 6.5% 4.0%

Hankook 6.0% 5.0%

BFGoodrich 5.5% 5.5%

Falken 5.5% 8.5%

Toyo 5.0% 4.0%

Firestone 4.5% 3.5%

Dunlop 4.0% 4.5%

Nexen 4.0% 3.5%

Pirelli 3.5% 4.5%

Continental 3.0% 4.5%

Cooper 3.0% 2.5%

General 2.0% 1.5%

Nitto 1.5% 1.0%

Sumitomo 1.5% 1.5%

Fuzion 1.0% 1.0%

Wanli 1.0% 1.5%

Others 2.5% 2.0%

Because numbers are rounded to the nearest half-per-cent, the total may not equal 100%. Brands must have at least 1% of the total high performance tire market in ship-ment numbers to be listed at 1%.Source: Modern Tire Dealer

Quik-Link: 800-687-1557 ext. 1211020

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MTD February 2011

UHP tires

Brennan says he has seen a 205/40R17 tire manufactured in China sell for as low as $30 here in the U.S.

Turn of the centuryFrom 2001 through 2010, domestic

shipments of high performance tires, defi ned as sizes H-rated and higher, 70-series and lower, have grown more than 130%. Ultra-high performance tires, in general V-rated sizes and higher, account for a signifi cant part of that increase.

The UHP market segment has grown nearly 250% in the last 10 years, from 7.5 million units to 26 million.

Th ose numbers are a litt le mislead-ing, says Brennan, because they are based solely on size and speed rating, not usage.

Vehicle evolution is partially re-sponsible for the confusion.

At the same time plus sizes were be-ing developed for Cadillac Escalades, Ford Explorers and Toyota Camrys,

The new Cooper Zeon RS3-S was previewed at both the 2010 SEMA Show in Las Vegas and the recent 2011 K&M Tire Expo in Red Wing, Minn. It is a max performance summer tire (pictured: size 235/50R18 97W).

Quik-Link: 800-687-1557 ext. 1211222

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MTD February 2011

UHP tires

technology for vehicle engines evolved. For example, the Ford Grenada in 1980 and the Toyota Camry in 2010 represent the same basic vehicle segment. However, the OE tires on those vehicles are night and day diff erent.

“Th e OE manufacturer has to put on a tire that’s equal to the capability of the vehicle, which might be 130 mph,” he says. “Eventually, you will see an 80,000-mile tire with a V-speed rating. So you see how the UHP segment has become so cloudy.”

Th e top fi ve most popular UHP sizes are: 225/50R17, 215/55R17, 215/50R17, 215/60R16 and 225/45R17. Th e 225/50R17 can be found on not only police pursuit vehicles, but also the Ford Fusion!

Th e most popular “true” UHP tire is sixth on the list: 225/45R17, which fi ts on a Subaru WRX.

Rounding out the top 10 are 235/55R17, 205/50R17, 205/60R16 and 215/45R17. Th ere are 10 17-inch sizes in the top 20, but only one 15-inch size (195/55R15 at number 20).

Brennan says the UHP tire lines will continue to blur, because sports car sizes are either growing slowly or declining, and sedan sizes are gett ing larger.

“Th e vehicles that came with size 235/75R15 10 years ago are coming out with 17-inch versions now.

“Size 225/45R18 is going to continue to grow, as are 17-inch, 50- and 55-se-ries tires. Eighteen- and 19-inch, 55-series sizes are growing as well, especially because they come on CUVs (crossover-utility vehicles).”

Th at doesn’t bode well for size proliferation, even though companies like Falken Tire Corp., Hankook Tire America Corp., Yokohama Tire Corp and Toyo Tire U.S.A. Corp. “have cut back on sizes like us. In some lines, the number of tire models we off er the same size in is increasing.

“Probably the biggest single issue is SKU count,” says Brennan. “And it’s not going to get any bett er.” ■

As the broad-line tire market segment declines (top), others, including the UHP segment, trend upward.

24

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John Snider, left, acceptsthe 2010 Tire Dealer of the Year trophy from MTD Publisher Greg Smith.

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In addition to the industry recognition, the MTD Tire Dealer of the Year’s favorite charity will receive a minimum of $1,000 from MTD.

The winner will also be featured on the cover of our September issue and spotlighted in a feature article. There is no higher honor a tire dealer can receive than joining the prestigious list of winners of Modern Tire Dealer’s Tire Dealer of the Year award.

In selecting MTD ’s Tire Dealer of the Year, judges will consider five elements:

1. Business Success 2. Marketing Skills3. Management Skills 4. Industry Knowledge5. Community Involvement

Any independent tire dealer, except our previous winners, is eligible for the competition.

Content of nominations, not entry embellish-ments, will determine the winner, so keep entries factual and simple. Support material may be in-cluded, but is not mandatory.

To immediately nominate a dealer, log onto www.moderntiredealer.com and fill out our on-line nomination form. For more information, contact MTD Editor Bob Ulrich at [email protected].

I nominate for Modern Tire Dealer’s Tire Dealer of the Year:

Name ____________________________________________

Phone____________________ Dealership ________________

_________________________________________________

Address ___________________________________________

City ____________________________________ State _____

Zip Code ________________

Nominated by:Name ____________________________________________

Phone_____________________________________________

Relationship with nominee _____________________________I believe this dealer should be considered because: ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Mail to: Modern Tire Dealer of the Year, 3515 Massillon Road, Suite 350, Uniontown, OH 44685. Deadline for entries is June 3, 2011.

Send in your Tire Dealer of the Year

nomination today!

Every Tire Dealer of the Year, including 2008 winner Ken Towery, left, chooses the charity that receives money donated by MTD and its advertisers.

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MTD February 2011

By Lori L. Mavrigian

W ith a nod to singer/songwriter Bob Dylan, the times are indeed changing for tire service. Th ere are numerous new products on the market that make

UHP tire demounting, mounting and balancing quicker and easier than ever before. “If you’re changing high performance tires and wheels, you can’t be doing it with the same old stuff ,” succinctly states Pete Liebetreu, Hunter Engineering Co.’s product manager, tire changers. So here’s a rundown of some of the equipment suppliers’ latest off erings.

Leverless is more with tire changersHunter Engineering Co.’s new Auto28 tire changer services

all wheel designs from 10 to 28 inches in diameter safely and easily. “Th e Auto28, our latest tire changer, is the ‘litt le brother’ to our Auto34 tire changer,” says Liebetreu.

Th e Auto28 features a tool head design that automatically slips easily between the rim edge and tire sidewall and extracts the bead gently in one fl uid down-and-up motion without the use of bead levers. Th is leverless system reduces potentially damaging stress on the bead and eases overall operation.

“Th e leverless head is quite thin where the tire passes over it. It doesn’t stretch the tire more than it needs to,” Liebetreu notes.

Th e powerful, high-torque electric motor exerts over 850 ft .-lbs. of torque to mount even the most stubborn beads. Th e variable-speed drive system gives the technician the ability to control the amount of force needed to service a wheel at the most effi cient speed, while safeguarding against damage.

Th e center-support clamping table and self-centering quick clamp give the Auto28 the fl exibility to easily mount a wide variety of wheel designs with the same clamping technique. Th e mount/demount rollers gently roll the tire off or on the rim. “It

‘worries’ the tire off the rim,” explains Liebetreu, taking extra care not to damage the wheel.

The bead press arm pushes and holds stiff side-walls in the drop-center of a rim as the wheel rotates, greatly reducing the risk of bead damage.

Th e Auto28 also fea-tures a side-mounted bead loosener using a side-shovel design familiar to most technicians and an optional wheel lift to help with heavy or expensive wheel assemblies.

Corghi USA off ers an automatic, leverless tire changer, the A 2024LL. It uses a top bead demounting procedure with the same working movements as a manual demount using a tire lever, but it requires no eff ort from the operator thanks to the “leva la leva” technology incorporated in the mount/demount head, the company says.

Th e machine features pneumatic tilting and Corghi’s turn-table system, which allows clamps to be moved to change the working range.

Th e A 2024LL also features an adjustable bead breaker arm, which moves to ensure that the working position is always perfect for the rim diameter. Th e bead breaker arm is supplied with a shoe extension system for use on large diameter wheels.

Th e A 2024LL tire changer is suitable for tires up to 14 inches wide and 43 inches in diameter and off ers an inside clamping capacity of 13 to 26 inches and an outside clamping capacity of 10 to 24 inches.

Snap-on Equipment is off ering the John Bean Pegasus ATC 800 Leverless tire changer designed to meet the needs of shops handling high volumes of wheels, particularly low-profi le, run-fl at and extended-mobility tires. “Its best-in-class design and features will improve safety and consistency while reducing technician fatigue and damage to wheels and tires when compared to tabletop tire changers,” the company notes.

Th e Pegasus ATC 800 is easy to operate with its laser-guided demounting process, in which a laser light assists the technician in sett ing the demount head in the optimal position for both mounting and demounting, and eliminates the chance of wheel damage during the process.

Th e Pegasus ATC 800’s demount head has no pivot points. Once in position, the demount head effi ciently lift s the sidewall from the wheel with no manual input and eliminates the need for a tire lever or for multiple technicians to assist when demounting tires. Th e Pegasus ATC 800’s bead breaker does not contact the wheel at any point in the process, providing what the company has termed “Do No Harm” performance.

Hennessy Industries Inc. is off ering the Coates ProGuard Leverless tire changer developed specifically for handling oversized, run-fl at and low profi le tires, the company notes. It features a design that reduces the risk of tire or rim damage.

In addition to the leverless operation, the ProGuard Leverless tire changer has built-in features that take the strain out of tire changing. Lift ing, prepping, bead loosening, mounting and demounting can all be done with easy-to-use controls from a single operator location. It features the Coats Leverless Power Duckhead Bead Lift er that eliminates traditional tire tools that can mar the tire’s surface due to application diffi culty or operator error. It also has a highly intuitive and easy-to-use design that eliminates metal-to-metal contact, taking the tire bar out of the

UHP tire service

Times they are a-changin’New tire mounting/balancing equipment eases service

Hunter’s Auto28 tire changer’s tool head design automatical-ly extracts the bead without the use of bead levers.

28

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MTD February 2011

UHP tire service

operator’s hands and ensuring a controlled mount and demount process. During demounting, the leverless tool hooks the lip of the bead and eff ortlessly lift s it just above the rim. Th e tire then comes off the rim safely and easily with a simple rotation of the tabletop. Other features include a protective pedestal and center lock design, a built-in adjustable wheel lift , a bead loosener disc and tower, Robo-Arm helper device and a tilt back tool tower.

Additionally, the Coats 70-Series Rim Clamp tire changer recently got upgrades to increase its capability to handle

performance tires. “The additional functionality and improvements we’ve made to our workhorse machines for the tire retailer enable them to handle those high performance and UHP fi tments down in the more average size range,” says Kevin Keefe, vice president, marketing.

Keeping it in balanceHennessy Industries’ Coats 1250

Series wheel balancer comes in three models – the 1250-2D, 1250-3D and 1250-3DV.

Th ey come equipped with 1.5 hp direct drive motors, eight balancing modes, and Laser-Guided Operation that eliminates error by pinpointing the exact Tape-A-Weight placement and behind-the-spoke weight placement locations.

Th e company’s top model, the 1250-3DV, has a video display that is bright and durable and provides on-screen training while reinforcing proper balanc-ing techniques.

Hunter Engineering’s Road Force GSP9700 tire balancer offers precise and accurate tire balancing, says Greg Meyer, product manager, balancers, which is especially important today because “vehicles are increasingly sensitive to imbalance,” he notes.

Th e Road Force GSP9700 eliminates tire and wheel vibration. Each tire/wheel assembly is tested for the amount of dy-namic/static imbalance and road force. It simulates a “road test,” with a unique “load roller” which applies up to 1,400 pounds of force against the rotating assembly. Th e roller measures the loaded runout of the assembly and automatically recommends corrections when needed.

Th e GSP9700’s technology eliminates many of the time-consuming and oft en non-productive manual measurements previously used to diagnose and repair ride disturbance concerns. ■

Hennessy’s 1250-3DV tire balancer has a video display that helps less experienced operators com-plete many specialty operations.

Quik-Link: 800-687-1557 ext. 1211630

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31www.moderntiredealer.com

ALSO IN CTDTire restoration:New type of shoulder repair could save money and time . . . 34

By Kevin Rohlwing

E dward Lorenz was a noted mathematician and meteorologist who pioneered the study of chaos theory. He determined that when

complex systems were entirely dependent on initial conditions, such as the weather, even the smallest changes could yield dramatically diff erent results in the end. His work has been used in the fi elds of physics, applied mathematics, economics, biology, psychology and meteorology, to name a few. But Lorenz is probably most famous for a paper he entitled, “Does the flap of a butterfly’s wings in Brazil set off a tornado in Texas?”

One only needs to look at recent weather pat-terns that have been att ributed to global warming to witness the genius behind his work. When the initial conditions in a complex system are extremely sensitive, even the slightest shift will totally change the outcome.

Besides academics and other more intellectual pursuits, chaos theory can also be used to analyze the OTR tire industry. Unlike the passenger, light truck and medium truck tire markets where there are only a few applications and the products have almost reached the

commodity stage, OTR tires remain highly specialized. Th e engineering behind these complex tires continues to evolve, and while there is tremendous competition in other aspects of the tire industry, the OTR segment is relegated to only a handful of manufacturers with the resources to build the largest tires on the planet.

In order to bett er understand the relationship be-tween supply and demand for OTR tires, the market must fi rst be divided into three categories: small, large and giant.

Market segmentsSmall OTR tires are typically defi ned as those with

24- or 25-inch bead diameters that are primarily used on construction equipment such as small rubber-tire loaders and scrapers. When compared to the other segments in the OTR industry, there are defi nitely a lot more domestic and foreign manufacturers, so the likelihood of prolonged shortages is relatively small.

Th e large OTR tire market is primarily dedicated to quarry opera-tions and mainly consists of tires with bead diam-

Commercial Tire Dealer™

The chaotic world of OTR tiresGlobal tire segment is extremely

dependent on markets abroad

2007 dealer reported retail statistics — machinesBy marketing region for the three-month rolling period

compared to same months of prior year

Period ended

Asia/Pacifi c EAME*

Latin America ROW**

North America World

January Up 21% Up 27% Flat Up 20% Down 9% Up 4%

February Up 10% Up 32% Up 1% Up 19% Down 10% Up 3%

March Up 20% Up 43% Up 25% Up 32% Down 15% Up 6%

April Up 16% Up 32% Up 29% Up 27% Down 14% Up 4%

May Up 23% Up 35% Up 15% Up 27% Down 13% Up 4%

June Up 12% Up 27% Down 1%

Up 17% Down 13%

Down 1%

July Up 16% Up 32% Down 5% Up 19% Down 14% Up 1%

August Up 10% Up 27% Flat Up 17% Down 9% Up 3%

September Up 16% Up 26% Up 3% Up 19% Down 12% Up 3%

October Up 16% Up 25% Up 21% Up 22% Down 14%

Up 3.5%

November Up 23% Up 31% Up 49% Up 32% Down 15% Up 9%

December Up 19% Up 24% Up 70% Up 30% Down 13% Up 9%

* EAME = Europe, Africa and Middle East** ROW = Rest of worldAll chart information provided by Catepillar Inc.

2008 dealer reported retail statistics — machinesBy marketing region for the three-month rolling period

compared to same months of prior year

Period ended

Asia/Pacifi c EAME

Latin America ROW

North America World

January Up 16% Up 21% Up 50% Up 25% Down 13% Up 7%

February Up 11% Up 18% Up 43% Up 20% Down 15% Up 4%

March Up 10% Up 14% Up 14% Up 13% Down 20%

Down 1%

April Up 19% Up 21% Up 15% Up 19% Down 18%

Up 2%

May Up 24% Up 9% Up 11% Up 13% Down 17% Down 1%

June Up 31% Up 12% Up 23% Up 18% Down 15% Up 2%

July Up 28% Flat Up 18% Up 9% Down 13% Down 1%

August Up 32% Down 2% Up 23% Up 10% Down 18% Down 3%

September Up 32% Down 4%

Up 34% Up 11% Down 13%

Up 1%

October Up 16% Down 9% Up 35% Up 5% Down 12% Down 2%

November Up 5% Down 15%

Up 18% Down 3%

Down 11%

Down6%

December Down 13%

Down 20%

Up 11% Down 12%

Down 21%

Down 15%

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MTD February 2011

OTR tire market

eters that range from 33 inches to 49 inches. As the tire sizes get larger, the number of manufacturers gets smaller, so they are more susceptible to supply issues.

Finally, the giant OTR tire segment is comprised of tires with bead diameters of 51 to 63 inches that are used in large mines. And as history has shown, the balance between supply and demand for these tires is extremely delicate for a number of reasons that will be explained later.

Unlike the passenger, light truck and medium truck tire industries, the OTR tire market can easily be described as chaotic. Most of the passenger and light truck tires used in North America are produced in North America with litt le reliance on overseas production. And since most of that production stays on this continent, changes off shore typically do not have a major impact on our supply because those markets have their own manufacturing plants.

Likewise, the demand for passenger and light truck tires overseas is primarily supplied by production closer to those regions, so changes in North America have litt le eff ect on their supply. Th e same can be said for the medium truck tire industry, although the current truck tire casing shortage can be att ributed in some part to the reduction in casing imports.

On the other hand, the OTR tire industry in North America is global in every sense of the word, so it is extremely dependent on the markets abroad.

Th ere are a number of initial conditions that aff ect the worldwide supply for all types of OTR tires, regardless of size. First and foremost is the demand at the original equipment level. In order

to illustrate this relationship, dealer statistics from Caterpillar (the world’s largest heavy equipment manufacturer) for the past four years show how shift s in one part of the world can impact the global market.

For example, in 2007 the collective markets outside North America were up by as much as 32% in March and November. But the reduced demand on this continent brought the worldwide sales increases down to 6% and 9% for the same months.

The beginning of 2008 shows the same trend, where increased sales throughout the rest of the world were off set by decreases in North America. And by the time that the recession had a stranglehold on the global economy at the end of year, worldwide sales were down by 15% in December.

Everyone would like to forget 2009, and the dealer statistics from Caterpillar clearly demonstrate the economic downturn in every market. Th at trend more or less continued into the fi rst half of 2010 until May, when the numbers started turning around. It’s also interesting to note that when North American sales experienced their fi rst increase in more than three years, the decreases in Europe, Africa, the Middle East and Latin America were off set to actually increase the worldwide statistics. By the time November rolled around, the global market for heavy equipment had turned around faster than anyone could have forecasted.

Based on these fi gures, it’s fair to say that the market for new heavy equipment in North America represents another initial condition that contributes to the chaos.

In the next CTD section coming in April, we will continue our look at OTR market conditions and tire production. ■

Kevin Rohlwing is senior vice president of training for the Tire Industry Association (e-mail [email protected]).

2009 dealer reported retail statistics — machinesBy marketing region for the three-month rolling period

compared to same months of prior year

Period ended

Asia/Pacifi c EAME

Latin America ROW

North America World

January Down 15%

Down 27%

Up 4% Down 17%

Down 30%

Down 22%

February Down 8%

Down 37%

Down 2%

Down 22%

Down 35%

Down 27%

March Down 13%

Down 44%

Down 6%

Down 28%

Down 41%

Down 33%

April Down 21%

Down 47%

Down 9%

Down 32%

Down 51%

Down 39%

May Down 30%

Down 46%

Down 12%

Down 35%

Down 57%

Down 43%

June Down 27%

Down 51%

Down 23%

Down 38%

Down 59%

Down 47%

July Down 30%

Down 50%

Down 28%

Down 40%

Down 59%

Down 48%

August Down 33%

Down 50%

Down 37%

Down 42%

Down 57%

Down 48%

September Down 40%

Down 55%

Down 41%

Down 47%

Down 60%

Down 52%

October Down 36%

Down 53%

Down 41%

Down 45%

Down 58%

Down 50%

November Down 31%

Down 53%

Down 27%

Down 40%

Down 54%

Down 45%

December Down 12%

Down 41%

Down 24%

Down 28%

Down 46%

Down 35%

2010 dealer reported retail statistics — machinesBy marketing region for the three-month rolling period

compared to same months of prior year

Period ended

Asia/Pacifi c EAME

Latin America ROW

North America World

January Up 1% Down 35%

Down 15%

Down 19%

Down 40%

Down 27%

February Down 2%

Down 22%

Down 20%

Down 15%

Down 30%

Down 20%

March Up 11% Down 18%

Down 15%

Down 7%

Down 21%

Down 11%

April Up 13% Down 14%

Down 10%

Down 3%

Down 5%

Down 4%

May Up 38% Down 8%

Down 2%

Up 9% Up 15% Up 11%

June Up 36% Up 8% Up 18% Up 20% Up 26% Up 22%

July Up 41% Up 19% Up 32% Up 29% Up 38% Up 32%

August Up 32% Up 26% Up 57% Up 35% Up 40% Up 37%

September Up 44% Up 40% Up 73% Up 49% Up 60% Up 53%

October Up 45% Up 40% Up 59% Up 46% Up 52% Up 48%

November Up 51% Up 43% Up 43% Up 46% Up 53% Up 48%

December*

* Not yet available

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MTD February 2011

By Kevin Rohlwing

A s it stands today, there are four types of repairs in the commercial truck tire industry: puncture, spot, reinforcement and section.

A puncture repair can be installed in the fi eld and must be located in the crown area of a truck tire, which is the center of the tread approximately 1 to 1.5 inches in from the edge of tread. Puncture repairs are also limited to a maximum of 3/8 of an inch in diameter. A spot repair is a rubber-only repair on the outside of the tire where an area of missing rubber is replaced without any damage to the body cables or belt wires. When a piece of rubber is miss-ing and the casing is exposed or damaged without actually penetrating the innerliner, a reinforcement repair may be installed. Finally, when the damage exceeds 3/8 of an inch or the injury is located in the shoulder or sidewall area, a section repair is required.

A repair, by defi nition, restores the original condition of the tire. In order to accomplish this, there are several criteria that must be met.

First of all, the damage must be completely removed. Truck tires are a complex blend of rubber and steel cords, so when an object penetrates the belt package and body plies, the area surrounding the injury is initially weakened to some degree. Since each cord is actually wound like a cable, when it breaks, the cable will continue to unwind. As the cables unwind, the area becomes even more unstable, which oft en leads to a separation.

Another key step to restor-ing the original condition with a proper tire repair is to fi ll the void with rubber. In the case of puncture repairs, this is typically accomplished by installing a cured rubber stem. Th e stem is coated in cushion gum, which reacts with the vulcanizing cement to chemically cure, or bond, the stem with the tire.

When puncture repairs are installed in a retread plant, un-cured rubber may be used to fi ll the void with an extruder gun. In these instances, the tire must be placed in a chamber to cure the rubber or the main components of vulcaniza-tion (time, temperature and pressure) can be applied with a portable spott er.

In either case, the end result is identical. Th e void left by the penetrating object is fi lled with rubber so water

and moisture cannot enter the casing which will lead to corrosion and, you guessed it, a separation.

Finally, the innerliner of the tire must be sealed with a repair unit to prevent any further air loss. On puncture repairs, this is accomplished by a universal or reinforced repair unit.

Since the goal is to restore the original condition of the tire following a repair, there is universal agreement on the basic steps and guidelines for all types of repair. However, one particular type of injury continues to be a problem for the truck tire service providers.

Puncture repairs are restricted to the crown area which means simple “nail holes” in the shoulder must be treated as section repairs. Th is results in a large number of tires and casings being permanently removed from service for a variety of reasons.

First and foremost is the fact that a section repair cannot be installed in the fi eld or on the side of the road. Th e tools and curing equipment are not readily available in a typical commercial tire service facility, so these tires usually are sent to a retread plant. Th en there is the issue of price. A section repair will cost the tire dealer anywhere from $30 to $50. Aft er the markup, the fl eet can pay up to $70, which in many cases is almost the price of the casing. Th ese two factors alone are oft en suffi cient to scrap the tire.

Unfortunately, there are still a lot of tire dealers who ignore the industry-recommended practices for tire repair when it comes to injuries in the shoulder. Th eir in-terpretation of crown area encompasses the entire tread surface, so standard puncture repair materials and procedures are used. And while this practice typically stops the air leak in the short term, the origi-nal condition of the tire is not restored because the edge of the repair unit is

located in an area of the tire that continuously fl exes as the tire rolls down the road. Th is oft en results in a failure because the fl exing causes the edge of the repair unit to lift .

Mini-sections hybrid Bob Majewski, president of Sumerel Tire Service Inc. in

Newport, Ky., has solved this problem by installing “mini-sections” that are a hybrid of the puncture and section repair processes.

Tire repair

Tire restorationNew type of shoulder repair could save money and time

Under current tire repair guidelines, this simple puncture in the shoulder must be treated as a sec-tion repair, so it cannot be repaired in the fi eld.

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MTD February 2011

Tire repair

When a simple puncture is located in the shoulder area, they remove the damage with a standard carbide cutt er and fi ll the injury with a cured rubber stem. Th en they install a larger repair unit so the edge extends beyond the fl ex area on the sidewall. And while it doesn’t necessarily conform to the exact repair guidelines established by the truck tire manufacturers, Sumerel Tire has experienced tremendous success with these repairs.

“Most of our fl eet customers are reluctant to add another $30 or $40 to the price of a retread for a section repair just because there is a puncture injury in the shoulder,” remarks Majewski. “We got tired of scrapping perfectly good casings, so we started installing mini-sections to repair these tires.

“Th e damage can be properly removed with a carbide cutt er and the cured rubber stem fi lls the void, so the repair unit on the inside of the tire became the only component that needed to change.

“By installing a larger repair unit that extends to the non-fl ex area on the lower sidewall, we avoid the problems associated with lift ing when the edge rests squarely in the middle of the high fl ex area. Since there is the possibility that a pencil bulge may become evident on the sidewall of the tire aft er a mini-section is installed in the shoulder and the tire is infl ated, we

install a blue triangle patch on the outside of the tire so law enforcement offi cials will know that the bulge is associated with a repair,” says Majewski.

“We’re able to save a lot of time by avoiding the labor-intensive process of installing a section repair so we can pass those savings on to our customers.”

Th e way I see it, there is no reason that this practice cannot be extended to the commercial tire service industry. Carbide cutt ers and cured rubber stems are already used on a daily basis, so larger repair units are the only new components that will be needed. And since most truck tire dealers do not have a supply of blue triangle patches to explain any pencil bulges in the sidewall, tire repairers need to add those as well. Of course, there are other factors that must be considered.

First, before installing a repair unit that extends from the shoulder to the non-fl ex area of the lower sidewall, the beads of

When a 20 repair unit is installed to repair a puncture in the shoulder, the edge of the patch is positioned in the middle of the fl ex area on the sidewall.

By installing a 24 repair unit to repair a puncture in the shoulder area, the edge of the patch extends beyond the fl ex area so it is not subjected to the constant fl exing that will cause it to fail.

Quik-Link: 800-687-1557 ext. 1211936

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the tire must be relaxed or the repair will bridge and eventually fail. On a well-lit spreader that positions the tire at the ideal working height, it’s not as diffi cult as it sounds. But when this practice is att empted on the side of the road, there are defi nitely some challenges that need to be overcome.

Second, technicians must be certain that the damage in the shoulder does not extend beyond the limits of standard puncture repair materials. Th e belt edge of a radial truck tire is an extremely sensitive area so any technician that installs one of these mini-sections must be positive that all of the damage has been removed.

But the most important factor that must be taken into account is the real-ity that mini-sections are not currently endorsed by any of the major tire or retread manufacturers.

Sumerel Tire has experienced success with these repairs, but that doesn’t translate into collective success for the rest of the industry. Their repair technicians are well-trained and they have all of the proper equipment to ensure that mini-sections fulfi ll the objective of restoring the original condition of the tire. Majewski will be the fi rst to admit that every puncture in the shoulder cannot be handled in this manner. Th ere are a lot of factors that must be taken into consideration, including the angle of the injury, the condition of the tire and the fi nal application.

With skyrocketing natural rubber and oil prices, fl eets are becoming more willing to accept a repair that falls outside the category of a simple puncture in the crown area. And since the average commercial tire dealer does not have the training, tools or equipment to perform full-blown section repairs in the fi eld, the concept of mini-sections in the shoulder area has the potential to solve a number of problems for all of the parties involved.

However, at the present moment, neither the Rubber Manufacturers Association (RMA) nor the Tire Industry Associa-tion (TIA) recognizes these repairs, so they remain outside the mainstream. While I cannot comment on the RMA position, I can say that TIA will follow the lead of the tire and retread manufac-turers when it comes to the installation of mini-sections.

Unfortunately, the inherent risks that accompany all types of tire repair make engineering and legal departments re-luctant to step outside the box. Without conclusive data that universally supports the practice of using a mini-section to repair a simple puncture in the shoulder

of a radial truck tire, these injuries will continue to result in a section repair or a scrap tire. And since we know that at least one retreader is having success, I believe that the alternative of improperly repairing puncture injuries in the shoulder creates even more risk for everyone.

Regardless, the industry is changing at a rapid pace, so the pressure to keep tires and casings in service for as long as possible should be enough for RMA and the truck tire manufacturers to at least consider the possibility of gathering the necessary data so the industry has an answer one way or another. ■

Quik-Link: 800-687-1557 ext. 12120

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MTD February 2011

Back in the “good ole days” when I began selling tires and service at the sales

counter there was a popular say-ing — “Nobody walks.”

This was based on the idea that you probably had a tire in stock to fi t the customer’s need. If they were in the store, you should have been able to close the sale if you used the “famous fi ve steps to a tire sale.”

Today, consumers have much greater access to the lat-est, up-to-date information — Consumer Report, online publications, and, of course, online search engines such as Google, Yahoo, MSN, Bing and more. Many retailers I have spoken with have reported that customers are less inclined to buy when in the store, and oft en see the store as part of the search process. During these times of rapid change and transition, business as usual will not work!

It’s been my experience that employees are aware that change is necessary, and will look to management to point the way. If direction is not given, then employees will adapt as they see fi t. Th is may or may not be in the best interests of the business. If management does not soon give the required new direction, before long, an “unmanaged” and perhaps “dysfunctional” patt ern will become the new norm. You can’t hide from change, it must be managed!

Th e Zat MethodOne of the key advantages of a local retailer has always

been personal service. Personal service means professional

service, so beware of the standard old approach and standard old answers when consumers are checking for information either on the phone or in person. Old answers don’t work, and some of them never did.

Th e following age-old reply is negative and lazy. It requires no creativity or thought. Have you ever heard this one: “I don’t have that tire”? Th ough it may be true, it’s not helpful, nor professional. A consumer can call any tire store and get that reply!

Th e fact is, a consumer can call a donut shop and get that answer: “I don’t have that tire.”

Th e answer that says, “I don’t have your tire, but I can get it,” is repeated daily in tire stores across the nation, more frequently now as a result of SKU proliferation, as mentioned earlier.

I’m going to suggest a method that I hinted at last month and that I have taught hundreds and hundreds of store personnel. Th e concept is simple: Sincerely ask for information, and seek immediate confi rmation of how the potential customer feels about your answers. I call it the “Zat Method.”

I used the following example last month: “I don’t currently have your tire size in stock. May I have your name and the best way to reach you? I’ll do some research and get back to you with a price and availability as soon as possible — no later than noon today. How’s Zat sound?”

Th at is a huge diff erence from, “I don’t have your tire, but I can get it.”

By asking, “May I have your name?” the sales person is making it personal. Off ering “price and availability” and to “get back” to the customer, the sales person is demonstrating a positive approach in assisting the customer. When you don’t have it, you’ve got to say something more than, “I

don’t have it.”As I stated earlier, the chances of an out-of-stock

condition are greater now than ever for a variety of reasons. Reporting to customers your current inventory status is just counter-productive.

Next is “Th e Recital.” Equally as unprofessional as the “out-of-stock report” is, so is “Th e Recital.” Th is is a result of our computer age.

Th e customer contacts a sales person that has positioned him or herself in front of the computer monitor and starts “reciting” what they are seeing on the screen.

On the phone it sounds particularly ridiculous, the sales person mumbling something like this: “Well, we don’t have the one you’re looking for... ahhh... well... wait a minute... yeah... we have one, but we don’t have any of the rears... well, maybe we could... ahhh... no, that’s not gonna’ work... we have the WhamBam 350, but they’re not on sale any longer... the rebate was over last week, I think...

Counter intelligence

Th e ‘Zat Method’ in practiceTaking the positive approach proves profi table

By Wayne Williams

John Antrican, assistant manager at Free Service Tire & Auto Center in Kingsport, Tenn., makes it personal by offering Rick Hanson price and availability assistance.

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wow... doesn’t look like we have a set of anything.” Th en to the famous fall back, “I don’t have it, but I can get it.”

Of course it all sounds like needless rambling because that’s what it is. I have heard this over and over again as I have phone-shopped tire dealers. I don’t know if it’s worse on the phone or at the sales counter. At the counter the sales person is fi xated on the monitor and mumbles without making eye contact. Th e customer feels ignored or invisible. As the seconds turn into minutes, the customer’s confi dence is lost, and so are the chances of a sale.

Out-of-stock conditions have always been a part of the retail tire business. With the explosion of additional SKU’s, the frequency of out-of-stock continues to increase, and bet-ter answers are required to provide good customer service. A confi dent answer or reply is required to earn the customer’s confi dence, and their business.

Here are a few examples from the Zat Method: “Several tire manufacturers produce good quality tires at fair prices. Will you permit me to research price and availability, and contact you in a few hours? How’s Zat sound?”

Or how about: “Because we sell so many tires, we purchase directly from several of the largest distributors in the area. Can I get the best number at which to contact you, and I’ll see what’s available now? I’ll get back to you ASAP with my best deal. How’s Zat sound?”

In each of these cases the sales person remains in charge of the conversation.

It never ceases to amaze me how sales people can tell the customer what they “can’t do” or “don’t have,” and relinquish control of the presentation to the customer.

I was visiting a dealer just a few months ago. They have instructed their counter sales people not to quote prices on a particular global/national brand without fi rst shopping the local market. Th ey never quote a price without checking costs and selling prices in the surrounding marketplace.

Th is dealer is seeing sales increases during the current economic downturn. Th ey are successful because they are managing the changes in the marketplace. Th ey have managed change and have a disciplined sales team. Th ey have trained for results and they are enjoying the results.

My “take-away,” closing comment is this: Don’t allow short, negative replies by you or your counter sales staff .

No more, “I don’t” or “I can’t.” It comes across as “I won’t” and “I’m lazy.”

Don’t let someone stare at the computer screen and mumble meaningless chatt er; rather, take the positive approach: “It doesn’t appear that I have your size in stock at the moment. Will you permit me to take your number and call you back momentarily with a price both for the tire and our complete price? We guarantee our prices. How’s Zat sound?” ■

Wayne Williams is president of ExCell Marketing Inc., a “counter intelligence” fi rm based in La Habra, Calif. He can be reached at [email protected].

Quik-Link: 800-687-1557 ext. 12121

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MTD February 2011

By Bob Ulrich

J .H. Kim, CEO of Kumho Tire Co., once again stood before Kumho’s largest dealers in North America. One year ago at the 2010 dealer meeting, he addressed legitimate concerns

about the company’s unstable fi nancial position.One year later, his tone was diff erent, less urgent and more

positive.“Last year, I asked you to believe that we’d survive, and be here

for you,” said Kim to the dealers att ending the 2011 meeting in Cabo San Lucas, Mexico. “My prediction came true.”

It took dramatic changes at the parent company in 2010 to make it happen. A new agreement with South Korean labor unions improved production effi ciencies. A reorganized management structure sped up decision making.

And the company reconfi gured tire production at its eight factories — a move made necessary by the tariff s imposed on Chinese consumer tire imports in 2009. Th e result was increased supply to North America as the year went on.

“You will see improvements in 2011,” added Kim.Of all the moves made by Kumho in the last 16 months,

perhaps none were as important as the restructuring of Kumho Tire U.S.A. Inc.’s distribution network by President J.B. Kim.

“We took action to consolidate our distribution points,” said Armand Allaire, national vice president of sales. “We moved from fi ve distribution centers to three.”

Kumho Tire U.S.A. was left with 1.6 million square feet of warehouse capacity in Rancho Cucamonga, Calif.; Chicago, Ill.; and Atlanta, Ga. However, it was able to improve fi ll rates by avoiding the cost of less-than-truckload shipments to dealers.

Modern Tire Dealer estimates Kumho’s worldwide tire sales were up 36% year-to-year in 2010, from $2.2 billion to $3 billion. In the United States and Canada, they were up 28%.

Ultra-high performing Ecsta 4XWhen it becomes available in June or July, the Kumho

Ecsta 4X will be the latest tire in the ever-evolving ultra-high performance all-season tire segment.

Th e tire, which eventually will replace the Ecsta ASX, was a long time in the making. Research on the next generation

ASX began in 2006. How-ever, by the time the tire was ready to be marketed, it was obsolete.

Other tire companies already had replaced their UHP all-season tires with ad-vanced products such as the Dunlop SP Sport Signature (W- and Y-rated), Yokohama Envigor (W-rated), Pirelli P Zero Nero All Season, Con-tiExtremeContact DWS, Goodyear Eagle F1 All Sea-son and the Michelin Pilot Sport A/S Plus. Charles van Heusden, manager of training and product planning, said new Hankook and Toyo tires in that category are in development.

So Kumho started over. Th e company determined that the best tire in the segment was the Pirelli P Zero Nero All Season, and used it as the performance benchmark.

Th e Ecsta 4X features a unique asymmetrical tread design that the company says “delivers improved grip, cornering and braking in both wet and dry conditions and even in light snow.” It will be available in 48 sizes, broken out as follows:

15 inch = 3, 16 inch = 7;17 inch = 17, 18 inch = 14;19 inch = 3 and 20 inch = 4.

Th e Ecsta 4X “is the main push for Kumho in 2011, especially in the middle of the year,” says Rick Brennan, Kumho’s vice president of marketing. Th e tire will be one of fi ve Ecsta UHP lines (along with the LE Sport KU 39, SPT KU31, ASX KU21 and LX Platinum KU27) backed by Kumho’s new 25% Road Hazard Warranty. If the tire fails for any reason up to the 25% wear mark, Kumho will replace it for free.

Kumho also is re-introducing the LE Sport KU39 into the marketplace. It is designed for European sedans and sports cars. ■

Focus on industry

Surviving and thrivingKumho makes necessary changes in 2010

Drew White, purchasing manager for The Tire Rack, believes the new Kumho Ecsta 4X ultra-high perfor-mance all-season tire has “volume potential.”

In 2011, Kumho Tire U.S.A. Inc. will focus on the following:

1. a “client-centric” approach to business. “We will focus on our key retail and wholesale clients,” said Armand Allaire, national vice president of sales.

2. “eco-technology” in tire design. “The market is open to eco products, they just have to perform as well as regular products,” said Rick Brennan, vice president of marketing.

3. sports marketing, rather than motorsports. “We will still do grassroots racing, and target the driving enthusiasts,” said Brennan.

4. brand awareness. “Internet presence is going to be more and more important to you,” said Brennan.

5. SmartWay certifi cation. The company’s modifi ed KLS02, KLD01 and KLT02 truck tires will have an “e” added to their des-ignations; full product code changes also are being made.

Business and marketing strategies Kumho announces fi ve changes in the U.S.

40

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MTD February 2011

SUBJECT VEHICLE: 2005-10 Nissan Frontier.SENSOR IN TIRE? No (sensors/transmitt ers are installed in wheels).RESET PROCEDURE? Yes (whenever an old sensor has been replaced).SPECIAL TOOLS NEEDED? Yes (CONSULT-II and CONSULT-II CONVERTER, plus a Transmitt er Activation Tool J-45295).

When the Nissan Frontier is moving at speeds of above 20 mph, its tire pressure monitoring system (TPMS) receives signals sent from the transmitt er installed in each wheel and gives alarms when tire pressure levels drop.

When the system detects low infl ation pressure or another unusual symptom, the warning light in the instrument cluster comes on.

If the system detects that air pressure has dropped to 28

psi, it will sound a buzzer for 10 seconds and a “FLAT TIRE” warning message will appear.

To remove an old sensor, follow these steps:1. Defl ate the tire. Unscrew the transmitt er retaining nut and

allow the transmitt er to fall into the tire.2. Place the tire and wheel assembly on the tire changer and

break both beads. Ensure that the transmitt er remains at the bott om of the tire while breaking the bead.

3. Turn the tire so the valve hole is at the bott om. Lift the tire onto the turntable and position the valve hole 270 degrees from the mounting/demounting head.

4. Lubricate the tire well, and remove the top side of the tire.

TPMS

New FrontierNissan’s TPMS service requires a variety of tools

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Reach inside the tire and remove the transmitt er.5. Remove the second side of the tire.Now you’re ready to install the replacement sensor by fol-

lowing these steps:

1. Place the fi rst side of the tire onto the rim.2. Apply suitable silicone lubricant to the new seal. Install

the seal on the sensor.3. Mount the transmitt er on the rim and tighten the nut to

49 in.-lbs.4. Place the wheel on the tire machine’s turntable. Make

sure that the transmitt er is 270 degrees from the mounting/demounting head.

5. Lubricate the tire. Install the second side of the tire.

6. Infl ate the tire and balance the tire/wheel assembly.

At this point, you may proceed with reg-istering the new tire pressure sensor.

Brief CONSULTationWhenever a spare tire is mounted or

a tire pressure sensor has been replaced, the new sensor must be registered. A Nissan CONSULT-II and CONSULT-II CONVERTER must be used to register the new sensor.

It is important to note that if a new sensor has been installed, it will be in “sleep mode.”

To wake up the sensor, you must follow these steps:

1. With the Transmitt er Activation Tool ( J-45295) pushed against the front left transmitt er, press the butt on for fi ve seconds. With the ignition switch in the ON position, the transmitt er must be woken up.

2. When the vehicle’s Body Control Module (BCM) has fi nished assigning each tire ID, the BCM fl ashes the hazard warning lights and sends a fl ashing indicator status.

Make sure the low tire pressure warning light goes out aft er all of the transmitt ers have been woken up.

Here’s how you perform the ID registration process with the CONSULT-II and CONSULT-II CONVERTER:

1. With the ignition in the OFF position, connect the CONSULT-II and the CONSULT-II CONVERTER to the Data Link Connector (DLC).

2. Turn the ignition to the ON position.3. Select “START (NISSAN BASED VHCL).”4. Touch “BCM” on the “SELECT SYSTEM” screen.5. Select “AIR PRESSURE MONITOR” on the “SE-

LECT WORK ITEM” screen.6. Select “WORK SUPPORT” on the “SELECT DIAG

MODE” screen, and then select “ID REGIST.”7. With the Transmitt er Activation Tool ( J-45295)

pushed against the front left transmitt er tire air valve, press the butt on for fi ve seconds.

8. Register the IDs in the specifi ed order, starting with front left , and then moving to (in order) front right, rear right and rear left . When ID registration of each wheel position has been completed, a buzzer will sound and the vehicle’s hazard lights will fl ash. ■

Information for this column comes from Mitchell 1’s ”Tire Pressure

Monitoring Systems Guide” for domestic and import vehicles

through 2010. For more information, visit the company’s Web

site at www.mitchell1.com. Also, Modern Tire Dealer’s Web

site, www.moderntiredealer.com, has years of archived TPMS

columns available in the menu bar’s “Articles” section (click TPMS).

Figure 1: positioning tire on turntable.

Figure 2: removing and installing tire pressure transmitter

Quik-Link: 800-687-1557 ext. 12123

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MTD February 2011

Products

AutoEnginuity ScanTool 9.0AutoEnginuity has released its ScanTool 9.0 for the Windows platform. The ScanTool 9.0 vehicle diagnostics system introduces the 10MY coverage for supported vehicle manufacturers. Included is enhanced coverage for the GM Global A models such as the Camaro. Also new is the graphing support for the Ford CAN Power Balance feature. This version also has an updated graphical user interface with data logging playback to allow the entire fi le to be loaded without requiring playback; new higher resolu-tion bitmaps and icons; and support for closing the application without requiring a disconnect from the vehicle.AUTOENGINUITY LLCQuik-Link: (800) 687-1557, ext. 12170www.mtdquiklink.com/12170

Monroe OESpectrum shocks and strutsTenneco Inc. has introduced an extensive line of advanced-technology replacement shock absorbers and struts engineered specifi cally for foreign-nameplate vehicles. Monroe OESpectrum units provide handling precision and control while fi ltering out the ride harshness commonly encountered on many foreign-nameplate applications. This blend of control and comfort is made possible through an internal damping control technology fi rst developed for leading global vehicle manufacturers, the company reports. Monroe OESpectrum shocks and struts utilize Tenneco’s “Twin Technology Active Control System,” consisting of its latest Impact Control Valve, which delivers exceptional control under virtually all driving conditions, and a patented Low Speed Tunability piston design that isolates impact-related noise, vibration and harshness. TENNECO INC.Quik-Link: (800) 687-1557, ext. 12171www.mtdquiklink.com/12171

V-Tec wheelsVision Wheel’s new V-Tec wheels go anywhere over any terrain on any type of light truck or SUV, the company says. Both the twin-spoke 394 Wizard and fi ve-spoke 395 War-lord provide a powerful look and feel that comple-ments the strength of any type of light truck or SUV, says Vision Wheel. Both wheels are available in an open lug design or the clean look of the optional covered cap style. The V-Tec wheels are available in 17- to 22-inch sizes in chrome, matte black and matte black machined fi nish, the company adds. VISION WHEELQuik-Link: (800) 687-1557, ext. 12172www.mtdquiklink.com/12172

BKT adds off-highway tire sizesBKT Tires USA Inc. is offering new sizes in its lineup of off-highway tires. The company’s MultiMax MP 513 radial multi-purpose tire is now available is size 425/55R17 134 G. Its applications include telescopic handlers, backhoes and utility trailers. The TR 135 tractor tire for sprayers, harvesting and cultivation is now available in size 12.4-38. BKT’s TF 8181 front tractor tire now comes in sizes 10.00-16 and 11.00-16. Its Farm 2000 tire is now available in size 250/80-16 for trailer implements, small tractors and multi-purpose trucks, and the AgriMax RT 955 radial for row crops is now available in size 270/95 R 54 to replace size 11.2 R 54.BKT TIRES USA INC.Quik-Link: (800) 687-1557, ext. 12173www.mtdquiklink.com/12173

ANCO Winter BladesFederal-Mogul Corp. has introduced a line of ANCO Winter Blades for vehicles fi tted with original equip-ment profi le-type wipers. ANCO Winter Blades feature Federal-Mogul’s exclusive, extra-thick DuraKlear natural rubber wiping edge, which remains fl exible in cold temperatures to provide a consistent, streak-free wipe. These blades also include a rugged rubber boot that protects the heavy-duty steel frame from ice and corrosive materials. ANCO Winter Blades fi t all major OE connection systems, which minimizes SKU requirements. Each blade is shipped complete with easy-to-use installation adaptors that cover virtually any application originally equipped with profi le-type wipers. ANCO Winter Blades are available in 18-, 20-, 22-, and 24-inch lengths for profi le blade-equipped vehicles. They are available for a full range of foreign-nameplate and domestic applications.FEDERAL-MOGUL CORP.Quik-Link: (800) 687-1557, ext. 12174www.mtdquiklink.com/12174

Federal-Mogul ceramic disk brake padsFederal-Mogul has introduced Wagner ThermoQuiet Ceramic disc brake pad sets for the 2010 Hyundai Azera, 2009-2011 Hyundai Sonata and 2010 Kia Soul (rear); 2010 Hyundai Tucson (front); and 2005-2008 Cadillac XLR and 2006-2008 Chevrolet Corvette (rear). They combine the two technological benefi ts — Federal-Mogul’s Integrally Molded Insulator (IMI) one-piece brake pad and Wagner EDGE Laser-Shaped Friction designs. FEDERAL-MOGUL CORP.Quik-Link: (800) 687-1557, ext. 12175www.mtdquiklink.com/12175

RTI offers four-tire nitrogen infl ation systemRTI Technologies’ NitroPRO NTF-230 nitrogen tire inflation system offers shops a fast four-tire infl ation time. The unit’s membrane technology can generate up to 98% nitrogen purity, and provides consistent nitrogen purity generation over the life of the membrane. The membrane technology requires no moving parts to generate nitrogen, making maintenance fast and easy. RTI’s fi lter technology also provides 99.9% effi ciency in water and oil separation. The compact NitroPRO NTF-230 requires just 24 x 24 inches of fl oor space and has a low overall unit height. RTI TECHNOLOGIES INC.Quik-Link: (800) 687-1557, ext. 12176www.mtdquiklink.com/12176

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MTD February 2011

Instant information direct from MTD advertisers

To request free product information by phone, call 800-687-1557, enter the extension number listed below, and you will be immediately transferred to the company you want to talk with — it takes only seconds.

To request information online, log on to www. mtdquiklink.com/ plus the corresponding Quik-Link number. You’re just a click away from receiving free information on the new products that interest you.

800-687-1557 +Advertiser Page Toll Free Extension Web site

Atturo Tire Corporation 22 12112 www.mtdquiklink.com/12112

Autopromotec 23 12113 www.mtdquiklink.com/12113

Bartec USA 43 12123 www.mtdquiklink.com/12123

Bee Line Company 36 12119 www.mtdquiklink.com/12119

BKT Tires, North America 10 12105 www.mtdquiklink.com/12105

Continental Tire the Americas LLC 19 12109 www.mtdquiklink.com/12109

Cooper Tire 7 12103 www.mtdquiklink.com/12103

Cornerstone Powered by ASA/Bridgestone IFC 12101 www.mtdquiklink.com/12101

Dealer Strategic Planning Inc. 41 12122 www.mtdquiklink.com/12122

EcoExpress Tire Centers 21 12111 www.mtdquiklink.com/12111

Greenball Corporation 37 12120 www.mtdquiklink.com/12120

Hennessy Industries Inc. 29 12115 www.mtdquiklink.com/12115

Hunter Engineering Company 30 12116 www.mtdquiklink.com/12116

Identifi x 39 12121 www.mtdquiklink.com/12121

Kenda USA IBC 12125 www.mtdquiklink.com/12125

Kumho Tire USA 5 12102 www.mtdquiklink.com/12102

Marangoni Tread North America Inc. 35 12118 www.mtdquiklink.com/12118

Maxxis International—USA 33 12117 www.mtdquiklink.com/12117

Michelin North America Inc. 9 12104 www.mtdquiklink.com/12104

Motorcraft 11

Nexen Tire America Inc. 13 12106 www.mtdquiklink.com/12106

Nitto Tire U.S.A. Inc. 45 12124 www.mtdquiklink.com/12124

Pathway Polymers/TyrFil 20 12110 www.mtdquiklink.com/12110

Sentaida International Inc. 15 12107 www.mtdquiklink.com/12107

Sumitomo Tire 25 12114 www.mtdquiklink.com/12114

Tire Centers LLC OBC 12126 www.mtdquiklink.com/12126

Yokohama Tire Corporation 17 12108 www.mtdquiklink.com/12108

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Quik-Link: 800-687-1557 ext. 12125

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