modern tire dealer march 2011

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THE INDUSTRY’S LEADING PUBLICATION

MARCH 2011 • VOL. 92, NO. 3 • TEN DOLLARS • A BOBIT PUBLICATION

www.moderntiredealer.com

Sizing up the segments

and winter tires

6

5Upgrading your

software: Follow these

steps

Putting the recession behind you: Avoid these mistakes

http://www.moderntiredealer.com

Quik-Link: 800-687-1557 ext. 13101

3www.moderntiredealer.com

Modern Tire Dealer is a proud member of:

TRIBMemberAn Industry Association

Features

18 Yee haw for LT and SUV tires Don’t mess with Cooper’s launch of

two big tires in the Alamo state

19 Breaking down light truck tire sizingLook for LT245/75R16 in an area near you

20 Traction on snow and iceGITI Tire debuts two winter tires in North America

22 Smiley’s Tires, Tunes and Tints‘Don’t fall into the trap of

thinking you have to be (just) a tire store’

On the cover: Photo by Bob Bissler

4 Editorial18 and counting: Nominate the next Tire Dealer of the Year

6 OnlineGentlemen (and ladies), start your browsing!

8 News/viewsCheerio, Renault! OE Motrio tires roll on U.K. motorways, but not on U.S. highways

16 Ludwig ReportDespite higher prices, tire demand to increase by 3%

30 Business insightYou survived... Now what? Avoid these six mistakes as you put the recession behind you

34 Business insightUpgrading your software: Prevent the anxiety by following these five steps

36 Focus on industryLet the celebration begin! Almost all the news is good, says Hankook’s Lee

38 Focus on industryMore Driven and more focused: For Goodyear’s Rich Kramer, the future is now

40 NVH solutionsPassive vs. active — How to make sense of wheel speed sensors

42 TPMSFocusing on the Ford F-Series: Smart Junc-tion Box sends a message if pressure drops

44 Products

46 Quik-Link

48 Classified

The Industry’s Leading PublicationMarch 2011, Volume 92, Number 3

Departments


MTD March 2011

Tire Dealers of the Year never seem to fade away. They just continue do-

ing the things that earned them the award in the first place.

And they are a wealth of in-formation, both to our magazine and their fellow dealers.

Case in point: I recently ran into Ken Towery, the Modern Tire Dealer Dealer of the Year in 2008, and his wife, Joanne, at the Goodyear Dealer Conference in Grapevine, Texas.

The Towerys are hands-on owners of Ken Towery’s AutoCare SuperCenters, a 20-store retail chain based in Louisville, Ky.

They were discussing the pros and cons of joining Good-year’s new Tire & Service Network dealer program, which replaces the Gemini format.

I asked them how their sales compared to our benchmark averages for 2010. According to MTD’s exclusive “State-of-the-Industry Survey,” nearly 60% of the retailers estimated their unit sales were up by an average of 10% last year.

That didn’t seem out of line, said Ken, but only because they added stores last year. Same store sales were up, but not by 10%.

At the same meeting, Tom Raben, president of Raben Tire Co. Inc. and our 2002 Tire Dealer of the Year, was checking out Goodyear’s new Super Single tires, which feature DuraSeal, a built-in tire sealant. Having a wide-base tire go down “is the biggest heartburn people have with (a wide-base) tire,” he said.

Towery and Raben haven’t rested on their laurels. They don’t sit behind their desks all the time. They are proactive, making sure they stay on top of the trends and new product introductions.

Two other Tire Dealers of the Year contributed their insights to a recent book written by Roger McManus, “Entrepreneurial Insanity in the Tire Industry: When Doing the Same Things Do Not Produce Different Results.” Both truly embody the entrepreneurial spirit.

McManus picked the brain of Larry Morgan (Tire Dealer of the Year, 2001) about managing employees.

The service business comes down to people, according to Morgan, who at one time owned and operated 600 Tires Plus stores as chairman and CEO of Morgan Tire & Auto Inc. He now co-owns nine car dealerships in Florida with his son, Brett.

“Incentive compensation is mandatory in the tire business,” he said. “But to be successful, the system must be extremely simple to understand and implement.”

Morgan also is a past president of the Tire Industry As-sociation. So is Raben.

Charlie Creighton (Tire Dealer of the Year, 2007), CEO of Colony Tire Corp. in Edenton, N.C., stays on top of his 43-store retail and commercial chain by keeping his regional and store managers up to speed on the sales numbers.

Creighton told McManus that within hours of the end of the last day of the month, he and his managers get a report that details “key numbers” and how they compare to the previous month, previous year and totals year-to-date. He calls this “the ritual.”

He also keeps them abreast of botton-line profits. The monthly net profit report “is the important one,” said Creighton.

Tom Gegax (1998) wrote his own business manage-ment guide, “The Big Book of Small Business,” based on many of his experiences as “head coach” of the Tires Plus chain before he sold it to Morgan. (He’s even mentioned

in “Entrepreneurial Insanity in the Tire Industry.”) MTD has run excerpts from the book since June of 2005.

Any independent tire dealer, except our previous winners, is eligible for the Tire Dealer of the Year competition. In selecting the winner, our judges consider five elements: business success, mar-keting skills. management skills, industry knowledge and community involvement.

A few of our 18 Tire Dealers of the Year have passed their legacies onto their sons. Raynal Pearson (1999), has turned over the reigns of Pearson Tire Co. in Richfield, Utah, to Larry Pearson, its CEO. The six-store retail and wholesale dealership celebrated its 60th anniversary in 2010.

Service Tire Truck Centers founder Walter Dealtrey Sr. (1997) died in 2002. However, his company remains in able hands, two of them belonging to Walter Dealtrey Jr., co-owner, COO and secretary/treasurer.

You can find a nomination form on page 27. Or go online at www.moderntiredealer.com.

So do your part to add a member to the fraternity of Tire Dealers of the Year. Or, in the case of Purcell Tire & Rubber Co.’s Juanita Purcell, who shared the 2004 award with her husband, Bob, the sorority. ■

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

Editorial

18 and counting: Nominate the next Tire Dealer of the Year

The monthly net profit

report ‘is the important one,’ said Creighton.

By Bob Ulrich

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MTD March 2011

3515 Massillon Road, Suite 350Uniontown, Ohio 44685(330) 899-2200, fax (330) 899-2209 Web site http://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: KAREN 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 The Dyal [email protected] (760) 451-5026, fax (760) 451-5039

West Coast: MARIANNE DYAL The Dyal [email protected](760) 451-9216, fax (760) 451-9292

Automotive Aftermarket: DAN [email protected](734) 676-9135, mobile (313) 410-0945fax (734) 675-6744

Classified Sales: DONNA STEWART [email protected](405) 513-6794, fax (360) 406-7576 Reprint Sales: KAREN RUNION [email protected](330) 899-2200, fax (330) 899-2209

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Online

Gentlemen (and ladies)START YOUR BROWSING!

March is here, and the racing season for 2011 is well underway with events already run in many series around the world — the Daytona 500, Dakar Rally and Monte Carlo Rally, to name just a few.

Now is the time to bookmark www.moderntiredealer.com and the MTD Racing News channel so you can catch up on all the racing news, especially with regard to tire manufacturers’ and tire dealers’ involvement.

Log-on and follow the news channel prompts to MTD Racing News and get ready to “Start your engines!”

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 offices. 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 first issue. Please address Editorial and Advertising correspondence to MODERN TIRE DEALER, 3515 Massillon Road, Suite 350, Uniontown, OH 44685-6217. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. For your information: We sometimes make our subscriber information (i.e. fax, e-mail or mailing address) available to carefully screened organizations whose products and services may be of interest to you. If you prefer not to have your information made available, please write MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068.

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MTD March 2011

By Bob Bissler

A fter lowering new Renault prices by up to £2,000 ($3,254) in the United Kingdom last year, Renault UK Ltd. has followed up with the introduction of

its own low-price tire brand, the Motrio. Available from U.K. Renault dealers since February 1, the

Motrio has been specially developed to suit the requirements of older Renault vehicles, with prices starting at £36 ($58) per tire, fully fitted.

The company is able to keep the price lower by manu-facturing them in nearby countries.

“Motrio tires are currently manufactured in three factories split between Portugal and the Czech Republic,” says Jeremy

Townsend, press

relations manager for Renault UK. “The country of origin is clearly marked on the sidewall of every tire, which is a legal requirement in Europe.”

Townsend says that in addition to the Motrio, Renault’s other OE tires are Michelin, Dunlop and Continental, as well as Bridgestone and Toyo in smaller volumes. About 13,000 Motrio tires have been planned for the U.K. market for 2011. The U.K. launch follows the successful launch of the Renault-branded tire in several other European markets.

“Motrio tires were initially launched into seven countries (France, Germany, Belgium, Spain, Portugal, Romania and Turkey) in January 2010,” says Townsend.

In total, 150,000 Motrio tires were produced in 2010, and the company plans to increase production to 300,000 in 2012 to serve its European markets. While the company continues to expand in Europe, U.S. drivers won’t be seeing the Motrio any time soon.

“There are no plans to launch Motrio tires in the USA,” says Townsend. “The Motrio tire range introduction should

not have any effect on U.S. tire dealers.” Townsend says the new U.K. Motrio range was

designed to deliver high performance in wet or dry weather. The tire is available in one of two tread patterns: the Motrio Impulsion for smaller Renault models such as the Twingo and Clio; and the Motrio Impulsion+ for the rest of the range and Renault’s sportier models. The company says both tread patterns provide quiet running, steering accuracy, braking efficiency and long life.

“After servicing, tire replacement is the second most frequent reason for a motorist to visit a dealership or workshop, and it is also one of the highest value items when maintaining a

vehicle,” says Mark Crockett, director of service and quality for Renault UK. “Our new own-brand

tire range, which, of course, carries Renault’s seal of approval, is very competitively priced, and in

many cases is significantly less expensive than the premium brands, helping motorists to reduce their

costs without sacrificing on quality.” Renault says it launched the new tire in response

to strong consumer demand. It also is available in the European aftermarket. ■

News/views

Cheerio, Renault!OE Motrio tires roll on U.K. motorways,

but not on U.S. highways

The Renault-branded Motrio tire has been available in the U.K. market since February 1, with 13,000 tires planned for 2011.

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MTD March 2011

News/views

Hankook executives Hershberger and Bainbridge move onTwo Hankook Tire America Corp. executives have resigned from the company: Todd Hershberger, senior vice president of sales and marketing, and Bill Bainbridge, director of brand communications.

Hershberger resigned to become di-rector of marketing for Alcoa Wheel & Transportation Products in Cleveland, Ohio.

He directed Hankook’s replacement tire sales and marketing efforts, and orchestrated the company’s field sales organization, corporate account manag-ers and brand activities. He had joined Hankook in late 2009.

Bainbridge retired from the company at the end of February. A 35-year industry veteran, he joined Hankook as marketing director in May 2003.

At press time, no replacements had been named for either position.

Michelin offers consumer ‘Promise Plan’As of March 1, consumers in the U.S. and Canada who purchase a set of Michelin tires will automatically receive the new Michelin Promise Plan, which offers a free 30-day satisfaction guarantee, three-year flat tire changing assistance and additional mileage warranties on passenger and light truck replacement tires.

All details can be found at www.michelinman.com/promise.

Cooper buys out China plantCooper Tire & Rubber Co. has reached an agreement to buy out Kenda Rubber Industrial Co. Ltd.’s share in their joint venture plant in Kunshan, China, for $116.5 million. Each of the companies owned 50% of the consumer tire facility, which began production in 2006. The transaction gave Cooper 100% ownership March 15, 2011. The plant will be renamed Cooper Kunshan Tire, contingent upon government approval.

Wingfoot adds truck centerWingfoot Commercial Tire Sys-tems, a wholly-owned subsidiary of the Goodyear Tire & Rubber Co., has opened a new truck care center in Kenly, N.C., to provide new and retreaded tires plus 24/7 roadside assistance and various services. The new location is the third Wingfoot Truck Care Center located on I-95 between Florida and Virginia.

bites

Todd Hershberger (left) points out features of the Optimo H426 to Steve Nerheim, co-owner of Waukegan Tire in Park City, Ill., at the Hankook dealer meeting (see pages 36-37).

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http://www.michelinman.com/promise

MTD March 2011

News/views

Consumer• Michelin North America Inc. will increase

prices up to 8.5% on Michelin, BFGoodrich, Uniroyal, private and associate passenger and light truck replacement tires in the U.S., effective May 1. Michelin also raised prices Feb. 1, which varied by product line.

• Nexen Tire America Inc. will raise tire prices up to 8% effective April 1. The increases will be applied to warehouse orders and April FDC production. Nexen also raised prices up to 8% on Jan. 1.

• Toyo Tire U.S.A. Corp. increased prices March 1 on passenger and light truck tires an average of 8%, with in-line adjustments.

• Hankook Tire America Corp. will increase prices on its passenger and light truck tires by a weighted average of 7%, to go into effect April 1.

• Cooper Tire & Rubber Co. raised prices on its light vehicle tires effective March 15. The increases in total averaged around 8% to 9%, with in-line adjustments.

• Continental Tire the Americas LLC will raise U.S. consumer tire prices up to 6% with in-line adjustments, effective April 1.

• Federal Corp. raised prices on its pas-senger and light truck tires by up to 12% effective March 1. The percentage increase varied by product lines and continents.

• Kumho Tire U.S.A. Inc. raised prices on all passenger, light truck and medium truck tires effective March 1.

• Goodyear Tire & Rubber Co. raised consumer tire prices on March 1. The increase, up to 6%, applied to all brands in the U.S. and Canada.

• Falken Tire Corp. also raised prices on March 1. The price hikes on Falken passenger and light truck tires ranged from 5% to 8% depending on the size, with in-line adjustments as needed.

• Bridgestone Americas Tire Operations LLC will raise replacement and OE con-sumer tire prices on April 1 on Bridgestone, Firestone and associate brand passenger and light truck tires in the U.S. and Canada. Increases will vary up to 8%.

Commercial• Continental Tire the Americas LLC

will raise prices in the U.S. on Continental, General and AmeriSteel brand truck tires by 10% effective April 1.

• Double Coin and China Manufacturers Alliance LLC (CMA) hiked commercial tire prices an average of 13% March 1 on Double Coin radial truck and bus tires, all of its private brand radial truck and bus tires, and Double Coin radial OTR tires.

• Toyo increased prices on its commercial truck and OTR tires 8%, with in-line adjustments, on March 1.

• Michelin increased prices on its commercial products in the U.S. ef-fective March 1. The company also raised prices an average of 12%

on Michelin and BFGoodrich truck tires and Michelin Retread Technologies and Oliver retread products.

• Hankook increased prices on its medium truck tires by a weighted average of 9%, effective March 15.

• Titan Tire Corp. will raise prices on its farm and construction tires effective April 1. The increases, up to 8%, will apply to both Titan branded products and Goodyear branded tires manufactured by Titan.

• Cooper Tire & Rubber Co. raised its commercial truck tire prices 12% across the board during the week of Feb. 6.

• The Bridgestone Off Road Tire, U.S. & Canada Commercial Tire Sales division increased prices on its mining, construction and industrial tires by 12%, “with some in-line adjustments” on March 1.

• The Bridgestone Agricultural Tire, U.S. & Canada Commercial Tire Sales division announced a 4% price increase effective April 1 on the following tires: Firestone agricultural, construction and forestry tires; Bridgestone garden tires; and Regency tires sold in the United States and Canadian replacement markets.

• Michelin increased prices on Michelin brand replacement agricultural tires sold in the U.S. and Canada on March 1. The hikes were up to 8%.

New Bridgestone ag tire directorTom Rodgers has been promoted to director of sales and market-ing, agricultural tire, U.S. & Canada Commercial Tire Sales Division, Bridgestone Americas Tire Op-erations. Rodgers will manage the channel supply strategy between the company’s original equipment and replacement markets, and will work with the sales team to continue to provide technology and service to and through the com-pany’s OE customers and Certified Dealer network to meet the needs of production agriculture.

ITDG increases it footprintThe Independent Tire Dealers Group LLC (ITDG) had its best year yet in 2010, reports Michael Cox, CEO and president, with highlights including adding eight new shareholders. Cox says in 2010 the group experienced a top line growth of 40% and a comp increase of 31%, and had 16 new members join, representing 54 locations and bringing the total to 364.

Another dividend for CooperCooper Tire & Rubber Co. an-nounced a fourth-quarter dividend of 10.5 cents per share on common stock. The dividend is payable March 31, 2011, to stockholders of record at the close of busi-ness March 3, 2011. The company has declared a dividend for 156 consecutive quarters. Cooper Tire’s share price on the New York Stock Exchange on Dec. 31, 2010 — the end of its fiscal fourth quarter — was at $23.58. That compares to $20.05 per share one year earlier. The company posted net income of $40 million on net sales of $920 million for 4Q 2010.

Yokohama app explores tiresYokohama Tire Corp.’s new iPad app, the “Yokohama Tire Explorer,” introduced at the LA Auto Show, is available free on iTunes. The app features videos and information on the technology behind Yokohama’s consumer tires. Advan, Geolander, Avid, ENVigor, S.drive and the or-ange oil-infused dB Super E-spec all have their respective sections for users to explore.

bites Spring fever: Manufacturers announce more price hikesYokohama Tire Corp. will implement a price increase on its light and medium com-mercial truck tires in the U.S. effective April 1, 2011. Prices will be raised an average of 8%, with in-line adjustments. The company previously increased its consumer tire prices by up to 8% effective March 1.

Yokohama joins many tire manufacturers in announcing price increases in 2011.

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MTD March 2011

News/views

‘The Bridgestone Essence’ is revealedBridgestone Corp. has unveiled a new Bridgestone symbol and brand tagline and announced a refinement of its corporate philosophy, “The Bridgestone Essence,” to mark the 80th an-niversary of the Bridgestone Group’s founding.

The changes include refinement of the Bridgestone symbol that consists of the Bridgestone logo, Bridgestone mark and “B

mark” in order to respond to diverse customer needs and to reflect changes in the current social environment.

The logo will be changed out in all the company’s communica-tions and products in the coming years, the company notes.

The changes also include the tagline ‘Your Journey, Our Passion,” to communicate a commitment of supporting individuals.

TIA: The EPA’s scrap tire ruling is a victoryThe Tire Industry Association (TIA) applauds the United States Environmental Protection Agency’s decision not to

classify scrap tires as solid waste under the Clean Air Act.

TIA says it worked with numerous other associations to lobby Congress to ensure that the EPA scrutinized the industry’s position that scrap tires should continue to be utilized as an alternative fuel for cement kilns, paper mills and other power generators.

“The utilization of tire-derived fuel is an excellent way to keep scrap tires from stockpiles and landfills, and it provides other industries with a cost-effective, ‘green’ alternative to other fuels, such as petroleum,” says TIA Executive Vice President Roy Littlefield. “It also, in turn, lessens our nation’s dependency on im-ported oil, which, as we are seeing, is becoming more and more expensive.”

Cooper reports record salesCooper Tire & Rubber Co. recorded net income of $140 million on record net sales of $3.4 billion for the year ended Dec. 31, 2010.

Those figures compare to income of $52 million on sales of $2.8 billion for the fiscal year 2009. The company’s income-to-sales ratio also went up, increasing from 1.8% to 4.1%.

Cooper says the change in net income included an improvement of $56 million from discontinued operations. An 8% increase in unit shipments and higher pricing drove full-year net sales. Operat-ing profit totaled $188 million, a 5.6% increase over the operating profit of $156 million in 2009.

For the full year, the segment had sales of $2.4 billion, up 20.8% year-to-year. Sales in North America represent 72.1% of total sales.

Operating profit also was up, from $111 million to $131 million, an 18% increase.

For the fourth quarter, the segment achieved net sales of $669 million, up 18% from 2009 net sales, and operating profit of $42 million, up 7.7%. ■

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MTD March 2011

A s expected, wholesale tire prices are going up as much as 8% in March

as raw materials took a big jump up in January 2011. While natural rubber is the most visible as its climb is unprecedented in his-tory, other materials including synthetic rubber, carbon black, steel and chemicals also are up. I estimate that the total raw mate-rial basket cost in January 2011 was at least 30% greater than January 2010 (and up 10% vs. just one month earlier) so manu-facturers have no alternative but to move up tire prices. Yes, this is tough on consumers, but there is no option for them except to trade down in quality. Your job is to explain to them that quality is the lowest cost in the long run. As noted in my comments last month, fuel-efficient tires can offer a partial offset to higher tire prices. Despite this tire price inflation, I still expect consumer tire demand to increase as much as 3% this year.

Monthly survey

A number of independent tire deal-ers were surveyed concerning current business trends. Except for tire prices and costs, the results of the January 2011 survey are compared with those of January 2010.

Passenger tire dealers’ six-month outlook is mixed

According to our dealer survey, dealers who sell passenger or truck tires sense that in the next six months business will remain the same or improve. Roughly 54% of passenger tire dealers suspect business will remain the same, while the remaining 46% think business will actually improve. Likewise, 71% of all the truck tire dealers sense that in the next six months business will improve, but surprisingly, some are concerned about future business. The other 29% expect business will remain the same. None of the passen-ger or truck tire dealers expect business to worsen. These outlook comments tend to be seasonally directed rather than year-to-year comparisons.

Tire sales were strong in January

According to dealer reports, on average, retail sales of new replacement passenger tires were strong with many reporting as much as a 12% increase in January vs. January 2010. Some dealers we surveyed noted that traffic was slower than they

had expected (weather related) but remained optimistic. Truck and retreaded tire sales were strong, increasing 9% and 13%, respectively, in January year-over-year.

Costs for major and private brand tires were up In comparing the month of January 2011 with December

2010, average costs for size 215/60R16 major brand tires were up 2% while selling prices were up roughly 1%. The average costs for a 215/60R16 private brand tire were up 2% while selling prices were up roughly 3% for the month.

Pricing remained normal to firmIn January 2011, 67% of the passenger tire dealers described

pricing as firm, 25% perceived pricing as aggressive, while the remaining 8% of the passenger tire dealers thought pricing was normal. Likewise, 67% of truck tire dealers suggested pricing was very firm, while the balance of the truck tire dealers believed pricing was aggressive None of the truck tire dealers felt pricing was normal.

Truck tire inventories are too low The survey suggests that passenger tire dealers view

future demand with equanimity, as 54% of tire inventories seemed to be in line with business levels and 39% are too low. Conversely, 57% of truck tire dealers feel inventories are too low, while 43% believe inventories are in line with business levels.

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

40% of revenues, on average, were generated by service during January. Dealers indicated that service business was up over 13% in January vs. January 2010. ■

Analyst Saul Ludwig is a managing director with Northcoast Research Holdings LLC based in Cleveland, Ohio. He concen-trates on the tire and chemical industries. He has been writing for Modern Tire Dealer since April 1975.

Ludwig Report

Despite higher prices, tire demand to increase by 3%

By Saul Ludwig

How dealers view their near-term businessDealers SEP OCT NOV DEC(R) JAN(P) JAN(10)

Passenger tireWill improve 67% 33% 17% 17% 54% 70%Will worsen 0% 0% 50% 33% 0% 0%Will stay level 33% 67% 33% 50% 46% 30%

Truck tireWill improve 40% 0% 0% 75% 71% 83%Will worsen 0% 0% 33% 25% 29% 0%Will stay level 60% 100% 67% 0% 0% 17%R-Revised P-Preliminary

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MTD March 2011

By Bob Bissler

For the biggest year in Cooper Tire & Rubber Co.’s history, the company went to the state where everything’s big — Texas — to introduce two Cooper premium light truck

tires. Both are lines in the 30-year-old Discoverer family.The Discoverer A/T3 and S/TMaxx were launched at a

ride-and-drive media event at the Cooper Tire and Vehicle Test Center in Pearsall, Texas. They are designed for light truck, SUV and commercial applications.

The Discoverer A/T3 stands for “All Traction, All Terrain, All the Time,” and replaces the Discoverer ATR. In designing the tire, Cooper engineers worked for two-and-a-half years to give it attributes that light truck and SUV customers demand.

“The broken center rib gives you that aggressive all-terrain look and feel, and to help with vehicle stability, we couple the tread blocks together in pairs,” said Mike Stoltz, segment manager of SUV and trucks for Cooper’s North American Tire Division. “When you’re on the road, it gives you extra stability and confident handling, while the aggressive pattern helps off-road, so there’s a good balance for on- and off-road performance.”

The A/T3 is available in 62 outline white letter and blackwall

sizes, broken out as follows:

• SUV, 30 sizes (27 outline white letter). They range from 235/75R15 to 275/55R20 XL. • light truck, 32 sizes (27 outline white letter). They range

from LT235/75R15 load range C to LT275/65R20, load range E.

Cooper said the new Discoverer S/TMaxx commercial-grade traction tire was designed to perform in the toughest terrains. It features the company’s three-ply Armor-Tek3 carcass construction, a new, proprietary cut- and chip-resistant tread compound and a progressive tread design.

The S/TMaxx is currently available in eight sizes: five 16- and

two 17-inch sizes and LT275/70R18. The tire replaces the Discoverer S/T-C and selected sizes of the Discoverer S/T; in 2012, Cooper will move the remaining S/T sizes into the S/TMaxx line.

An all-terrain product needs to meet a variety of needs, including extreme off-road driving, typical hauling and winter traction. Stoltz said there are two different consumer sets in this market.

“The first is the hands-on enthusiast, the guy who gets his hands dirty. He works on his vehicle. He knows how he needs his vehicle to perform, and he wants tires that perform to that.

“Another consumer we’re looking at is the proud owner. He has similar interests to what the hands-on enthusiast has, but these guys really want their vehicle to perform well and they want it to look good.

“They may not necessarily do the work on the vehicle themselves, but they know how that vehicle needs to perform for them,” he added.

At Cooper’s ride-and-drive event, drivers tested the AT/3 against the BFGoodrich All-Terrain T/A KO and the Toyo Open Country AT. Cooper said the company strives for a tier one level of competition in performance and quality, while offering tier two value.

Drivers negotiated a 2/3-mile wet handling course to test wet traction characteristics, and a 500-foot-long mud lane to test mud traction handling.

Drivers also tested the S/TMaxx on a rock crawl, a hill climb, and a 1.5-mile road trail course filled with obstacles. ■

Light truck tires

Yee haw for LT and SUV tires Don’t mess with Cooper’s launch of two big tires in the Alamo state

Big year, more tiresCooper also debuts two UHP tires

Cooper Tire and Rubber Co. also launched two ultra-high per-formance tires at its ride-and-drive media event in Pearsall, Texas.

The Cooper Zeon RS3-A is a UHP all-season tire. It replaces the Cooper Zeon Sport A/S.

The RS3-A’s silica tread compound is designed for all-season driving performance, while its advanced technology mold profile gives the tire a square tread footprint. The line initially will be offered in 31 sizes.

Cooper’s Zeon RS3-S UHP summer tire is replacing the Cooper Zeon 2XS. Its silica tread compound is designed to provide good wet driving performance, while durable uniform tire construc-tion delivers a tight steering response. It is available in 21 sizes ranging from 235/45YR17 to 255/35WR20 XL.

18


The top 10 most popular replacement sizes accounted for 74.1% of total shipments. The top two sizes, LT245/75R16 and LT265/75R16, represented almost 30% by themselves. However, while LT265/75R16 is trending upward, LT245/75R16 is trending downward.

In 2005, the top 10 replacement LT tire sizes were made up of one 17-inch, six 16-inch and three 15-inch sizes. Five years later, the same six 16-inch sizes are still in the top 10. However, two of the 15-inch sizes (LT235/75R15 and 30x9.50R15) have been replaced by 17-inch sizes (LT285/70R17 and LT245/75R17).

Original equipment sizing eventually will catch up at the replacement level. The top 10 most popular OE sizes in 2010 were:

1. LT245/75R16: Has been the number one size for 18 consecutive years among RMA members.2. LT245/75R17: Represented 19.5% at the OE level, 15.1% at the replacement level.3. LT225/75R16: Number three in 2009, number two in 2008 and 2007. 4. LT275/65R18: Highest ranked 18-inch LT tire ever.

5 . LT 2 6 5 / 7 0 R 17 : Ranked as high as third (2008); represented 7.9% of total shipments last year.6. LT275/70R18: Has been in the top 10 for three years (it ranked 10th in 2008).7. LT265/70R18: First time in the top 10; accounted for 4.5% of all shipments.8. LT275/65R20: Only 20-inch size ever ranked in the top 10; ranked as high as fifth (2007).9. LT255/75R17: Dropped out of the top 10 in 2009 after being ranked seventh (2008) and 10th (2007). 10. LT235/80R17: First time in the top 10; accounted for 3.1% of all shipments.

The top 10 domestic OE LT sizes represented 86.8% of total shipments. The top size, LT245/75R16, accounted for 40.8% of the shipments. ■

Breaking down light truck tire sizingLook for LT245/75R16 in an area near youThere were 27.6 million replacement LT metric and flotation sizes shipped in the United States last year, according to the 2011 Modern Tire Dealer Facts Issue. That was up 6.1% over 2009. Imports accounted for 75% of the shipments in 2010.

Above is a chart of the top 30 sizes, courtesy of the Rubber Manufacturers Association (RMA) and Kumho Tire U.S.A. Inc.

Most popular replacement LT-metric light truck tire sizes in the U.S. (RMA members)

1. LT245/75R16 11. LT235/75R15 21. LT275/65R20

2. LT265/75R16 12. LT275/70R18 22. 35x12.50R17

3. LT235/85R16 13. LT235/80R17 23. LT305/70R16

4. LT265/70R17 14. LT275/65R18 24. 35x12.50R20

5. LT225/75R16 15. 30x9.50R15 25. LT285/65R18

6. LT285/75R16 16. LT195/75R14 26. 35x12.50R15

7. 31x10.50R15 17. 33x12.50R15 27. 32x11.50R15

8. LT215/85R16 18. LT315/75R16 28. LT305/55R20

9. LT285/70R17 19. LT315/70R17 29. 35x12.50R18

10. LT245/75R17 20. LT245/70R17 30. 37x12.50R16.5

The Cooper A/T3 LT and SUV tire has a cut-and-chip resis-tant tread compound.

MTD March 2011

By Bob Bissler

GITI Tire made a big impression in the snow at a recent winter tire event in Quebec City, Quebec — a place where the average temperature in February

is 9 degrees Fahrenheit.Winter is the longest season in Quebec, where winter tire

usage is mandatory from Nov. 15 through April 15. So it was a good place for GITI Tire (USA) Ltd. and GITI Tire (Canada) Ltd. to show off their new GT Radial Champiro WinterPro and IcePro tires.

The event was the official launch of the WinterPro., which had a soft launch last season in the

Canadian market. While 2011 is the second year the IcePro has been

available in the North American market, this was the first official event for the tire.

Both tires feature a tread compound made with the company’s NanoTek Silica technology and rubber poly-mers that maintain grip in icy temperatures.

Removing the elementsAccording to William

Estupinan, GITI Tire’s di-rector of technical service for

North and Latin America, the tread compound formula for the

new tires is designed for the best possible performance between

14 and 41 degrees F (that’s -10 to 5 degrees Celsius for metric Canadians). The WinterPro has a directional tread pat-tern with a center rib and

sipes engineered to increase traction on slippery surfaces. The WinterPro’s elliptic grooves in the tread design pump

water away from the tire’s contact patch. Estupinan said that while the tread pattern and depth are important, the tread compound is actually the most important contributor to winter tire performance.

“The tread compound is one of the biggest differences between all-season tires and purpose-built winter tires,” he said. “Summer tires start to lose grip performance at 5 degrees C or 41 degrees F.”

The GT Radial Champiro IcePro has a new studdable distribution design that provides grip while reducing noise levels, the company says. Its lateral groove pattern is designed to remove slush and ice from the contact area.

The winter tire market is big business in North America. According to the Rubber Manufacturers Association, a total of 9.8 million original equipment and replacement traction and snow tread tires were shipped in 2010.

According to the Rubber Association of Canada, 7.2 million winter tires were shipped in Canada in 2010.

“Our message to drivers is: If you live in the snow belt, put on a set of purpose-built winter tires like the GT Radial Champiro WinterPro or IcePro for the winter,” said Tom McNamara, vice president of sales.

McNamara emphasized “set” because he is adamant about replacing all four tires when buying winter tires.

“Putting winter tires on only the front or back axle is dangerous because one end of the vehicle will have a lot more traction than the other, causing understeer or oversteer.”

During the GITI-sponsored ride-and-drive event, drivers tested the new GT Radials against the Firestone Winterforce tire. In terms of quality, GITI says the tires compare favorably with tier two brands, although they are priced similarly to tier three competitors.

In addition to the Winterforce, the main competitors of the WinterPro and IcePro are winter tires from Kumho Tire U.S.A. Inc., Hankook Tire America Corp. and Toyo Tire U.S.A. Corp.

The Champiro WinterPro comes in 37 metric sizes ranging from 145/70R13 71T to 215/65R16 98H.

The Champiro IcePro comes in 41 T-rated metric passenger and SUV sizes ranging from 155/70R13 to 275/65R18. It also is available in five LT sizes.

GITI Tire (USA) and GITI Tire (Canada) are subsidiar-ies of GITI Tire Pte. Ltd. based in Singapore. The parent company has seven manufacturing facilities in China and one in Indonesia. ■

Winter tires

Traction on snow and ice GITI Tire debuts two winter tires in North America

More than tiresGITI also offers alloy wheels for winter

A new winter alloy wheel is available to dealers from GITI Tire (USA) Ltd. and GITI Tire (Canada) Ltd. The wheels initially are being sold as part of a wheel/tire package.

The wheels are manufactured by Seyen Alloy Wheel, a subsidiary of GITI Tire Pte. Ltd.

In addition to the new winter wheel, GITI is considering offering replacement alloy wheels in North America if business conditions are favorable.

Seyen Wheel produced 4 million alloy wheels in 2010. It projects production output of 5 million units in 2012 and 5.2 million units in 2013.

The company’s new plant in Suzhou-Wujiang, China, was scheduled to start production this month; the company anticipates manufacturing 1.2 million wheels in the plant by the end of the year.

The GT Radial Champiro Winter-Pro features a tread compound designed for cold temperatures.

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MTD March 2011

By Ann Neal

W hat Jack Smiley does not do is try to sell to everybody. Like all successful business owners, his marketing efforts are aimed at the most

lucrative customers most likely to return again and again.In the southwestern corner of Oklahoma, those customers

are shopping for high performance upgrades to their vehicles. They usually, but not always, start with tires.

“Once you have their trust for specialty work, you have that customer for all their upgrade needs,” says Smiley. He and his 10 employees sell high performance products out of a 15,000-square-foot shop called Smiley’s Tires, Tunes and Tints, located in the city of Altus.

Sky-high expectationsMany customers are from Altus Air Force Base just three

miles away. The base is the United States military’s premier pilot training facility.

As a corporate pilot with more than 8,000 hours in the air, Smiley has a unique understanding of the world in which these pilots, his customers, live. He’s been flying planes since 1983 and holds an Airline Transport Pilot rating. He also owned a flight school for a period of time. He simply loves to fly.

“When pilots come in the shop, we have something in common,” says Smiley. “They relate to my experiences because of the plane I fly. The military calls it the C-12. Civilians call it the King Air 200.”

Air Force pilots come to Altus for initial qualification, leave for a base assignment, return for aircraft commander training, leave for another base assignment and return for

instructor training. Some remain at Altus as instructors. The cycle covers about eight years and brings the pilots back to Smiley’s Tires as well.

“We meet them when they are young officers and again when they come back to Altus for their upgrade training.”

Used to superior performance in the air, the pilots like their personal vehicles to perform better than the manufacturer provided. They want high performance tires, exhaust and sound systems, and the privacy and looks tinted windows add to their high performance machines.

In addition to the Air Force base, Smiley’s Tires, Tunes and Tints draws customers from a huge farming community.

“This is truck country,” says Smiley. “It’s not unusual for a husband to drive a truck, his wife a Suburban, and their

kids pickup trucks. We probably do more modifications to pickup trucks than to Camaros. The truck business in this part of the world is extremely lucrative.”

Like the pilots and their cars, the people who buy custom wheels for their trucks eventually add a custom exhaust and stereo system.

“First a customer wants 22-inch tires, then dual exhaust, then upgrade for the factory stereo system. So we had that customer coming into the store.

“We kept adding services he want-ed. Now he comes to one place for everything. But he doesn’t buy all at one time. If we do his tires well, he

comes back for the exhaust, stereo, and window tint.”

Push backShrinking margins on tires prompted Smiley to add “tunes

and tint” to the operation.“At a big box like Walmart, the goal is to get a customer to

shop in the store, not to do a quick lube. It’s a good practice from Walmart’s perspective,” he says.

For an independent tire store, areas such as electronics provide a more profitable revenue stream.

“Walmart can sell a radio but cannot install it. If it involves any manufacturing, they’ll never be able to do it. They’ll never be able to train their employees to install window tints and custom stereos.

“We’ve moved into areas they’ll never be able to breach. Branching into areas that complement tires and doing custom and specialty work for customers who want to

High performance

Smiley’s Tires, Tunes and Tints‘Don’t fall into the trap of thinking

you have to be (just) a tire store’

Located in Altus, Okla., Smiley’s Tires, Tunes and Tints expanded into areas that complement high performance tires to boost profitability and draw customers to its 15,000-square-foot operation.

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MTD March 2011

High performance

upgrade has made up for areas where big box stores have eroded profits from tires.”

Do not assume people want the lowest price, he cautions.“Those customers are out there, don’t get me wrong. But a

lot of people get in the trap that they have to be the cheapest. If customers trust you to stand behind the product, they will pay you. The $10 more you charge will not bother them.”

The electronics and window tint portions of the business represent about 25 % of gross sales for Smiley’s Tires. The remainder comes from tires and traditional services for exhausts, oil changes, brakes, suspension, shocks and struts.

“The customer who comes in because I sold a certain ste-reo he wanted also looked at my tires and my tint equipment. When he’s ready for tires, I bet I get a shot at his business.

“Branching out brings more customers to your core business. Custom exhaust, window tint, and car electronics bring me customers I did not have before,” says Smiley.

Look beyond the tiresSmiley’s Tires, Tunes and Tints exists

today because of Smiley’s willingness to look beyond tires to draw in customers. “Don’t fall into the trap of thinking you have to be (just) a tire store,” he advises.

His expansion into electronics came about through a chance meeting with a man named Don Chaffin, owner of Jackie Cooper Tire and Electronics in Oklahoma City. The men met on a plane ride to Arizona for a Dayton tire meeting.

“Don asked me if I’d ever thought about getting into electron-ics. He told me it went well with the tire business.”

In 1998, he added cell phones, pagers, car alarms and car stereos to his product offerings. He eventually dropped the cell phones and pagers.

Smiley began attending consumer electronic trade shows to keep up with trends and products. At a show in 2003, he again ran into Chaffin, the same man who suggested he venture into electronics.

“During the plane ride, he asked if we do window tints. He told me about a new system offered by a company called Digicut Systems in Tulsa which machine-cuts window film. All the installers have to do is take out the film and install it. I bought the computer and software.”

With that purchase, Smiley’s Tires, Tunes and Tints was born. The business had come a long way from its origins as a motor oil distributor.

Raised in the tire business

In August 1955, Smiley’s father owned a building and formed a partnership with a man who owned a motor oil distributorship. The pair sold motor oil to service stations. They called their enterprise Morrison Wholesale and did not sell to the public.

Smiley picks up the story. “Back then, service stations were service stations. They checked the oil in a customer’s car. People also bought tires from them. So my father and his partner decided to branch out to distributing tires. They got into the El Dorado

buying group because they wanted to sell their own tires.”Manufacturers made and packaged products under the El

Dorado name. Smiley’s dad and his partner sold El Dorado batteries, shock absorbers and tires. Although Cooper Tire & Rubber Co. eventually bought and ended the buying group, the El Dorado brand is still marketed today by Treadways Corp.

The store began to sell tires to the public and became known as Morrison Tire. The partner passed away in 1995. Smiley, his brother-in-law and his dad bought the business and changed the name to Smiley’s Tire.

It’s no exaggeration to say that Smiley was raised in the tire business.

“When my parents got into it, my crib was in the store. I was on the company payroll at age 12.”

From the start, he was always looking for

new selling opportunities, which his dad often resisted. For instance, in 1986, he was pushing to expand into wheels.

“I wanted to buy wheels and mount tires on them. A customer who saw them would make a decision to buy both the tire and wheel in a split second. But my dad did not want to get into wheels because we had always sold tires.

“Not being open-minded and thinking you have to be a tire store is a trap. Why sell a customer only high performance tires? Why send them down the road?”

Showroom show-stoppersSmiley and his employees are determined to identify and

meet customer needs for high performance products. The effort is apparent in the store’s showroom.

Along with standard tire and wheel displays, the chrome tips of Flowmaster and V Force exhaust accessories catch the eye of customers browsing in the 3,000-square-foot showroom. A 12x12-foot enclosed space is set aside where customers listen to the quality of subwoofers and speakers without disturbing

Seven service bays accommodate two cars each at Smiley’s Tires, Tunes and Tints. About 75% of gross sales come from tire sales and automotive services.

Speakers and audio units are displayed in the 3,000-square-foot showroom at Smiley’s Tires, Tune and Tints.

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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!Mail too slow? You’ll find the

nomination form on our Web site: www.moderntiredealer.com

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

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

MTD March 2011

High performance

others. There also are interactive displays of audio, DVD and navigation systems.

Smiley notes that upgrades are not age-specific.“I have a customer with a new grandchild who already wants

to talk about a video system for his new Suburban. It’s not just for kids. Grandparents want in-dash naviga-tion and flip-down CD players for their passengers.”

Customers also can watch as a technician uses a Macintosh com-puter to generate a window tint pattern and a 40-inch cutter to trim the film. “The window tint machine is right on the showroom floor. It’s very interesting to watch the tint material being cut. We plug in a car’s VIN number and the machine cuts the film to fit.”

Customers also have the option of a comfortable waiting room with free Wi-Fi access for laptop computing.

There’s a welcoming ambience to the showroom. Purple neon lights softly punctuate the glass block counter. Neon lights shine in the windows. Smiley hired an interior designer to select the gray, red and black color combination of the floor and counter.

“She suggested simple things like setting the tile on point instead of 90 degrees. It makes the showroom look fresh and modern.”

Smiley says the design reflects the best of the tire showrooms he has ever seen. Also a corporate pilot for Candid Color Systems, his job takes him to locations throughout the U.S., eight to 10 days every month. Between flights, he looks up addresses of local tire stores and visits them to get ideas for his own store.

The only feature he likes that he was unable to include was a playroom for children of customers.

Construction of the new home for Smiley’s Tires, Tunes and Tints was completed 13 years ago. The 15,000-square-foot building includes the showroom, seven service bays that are two cars deep, and a tire warehouse.

Caring for customersThere’s an advertisement for Smiley’s Tires on cable television

365 days a year. The television ads cover 10 counties, attracting customers up to 70 miles away.

In local theaters, ads comprised of shots from the TV spots are shown to audiences before the feature film. Smiley’s Tires also is advertised aggressively on local radio stations.

Online, Smiley limits the company’s presence to dealer locators on the Web sites of product manufacturers. He briefly tried a Web site, but shut it down when keeping information current took too much time from other activities.

To raise awareness of the store while supporting worthy causes, he donates oil changes as prizes in fund raising events sponsored by local charities and Air Force base squadrons. By

far, however, satisfied customers who share their experiences are the most effective marketing tool for the dealership.

Smiley credits the company’s success to his extremely loyal and highly skilled employees and their ability to build relation-

ships with customers.“A customer will say, ‘I need

a wheel alignment. Have Duane do it.’ When customers come in and see the same manager, the same salesperson, and the same mechanic year after year, you are going to have relation-ships, you are going to have a level of trust.”

The store is managed by Daniel Carrisalez. There are two tire technicians, two service technicians, two salespeople and one person who handles both tire technician and sales duties.

Although they sell high-tech products, all rely on a low-tech, person-to-person approach to close on a sale.

Smiley shares ownership of the store with his brother-in-law,

Charles Ortega. The state representative for District 52, Ortega is the first Hispanic elected to the Oklahoma state legislature.

As Carrisalez took over more of the company’s day-to-day operation, Smiley decided to enter politics at the local level. He ran for city council two years ago. Today, he serves on the city council and is vice mayor of the city of Altus.

“Because Daniel does such a wonderful job running the store, Charles and I have time to take care of our constituents, the local level for me, and Charles on the state level. It is an important civic duty we would not have time to perform without a great manager like Daniel.”

“We provide a lot of service,” says Carrisalez. “We like to build a rapport with customers. We are not here just to make a dollar. We are here to take care of customers.

“Usually people who drive high performance vehicles know what they want. Our job is to ask the right questions and place them with the right tires suitable for their needs. We look forward to taking care of their kids. We have some young adults as customers I first knew as children who came in the store with their parents.”

Smiley’s Tires, Tunes and Tints gives customers something they increasingly want and expect — good, fast, dependable and knowledgeable service for their vehicles’ high performance products. That’s the reason lucrative customers return again and again.

“Everybody wants to say Walmart is a competitor,” says Car-risalez. “As far as price they are, but not in service.” ■

Ann Neal is a freelance writer with more than two decades of

experience managing employee, financial and marketing communica-tions and Web content in the commercial trucking industry.

Personalized and knowledgeable service for high performance tires and accessories draws customers to Smiley’s Tires, Tunes and Tints. Owner Jack Smiley (center) is pictured at the distinctive glass-block counter with store man-ager Daniel Carrisalez (left) and Levi Tovar.

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MTD March 2011

By Norm Gaither and Pat Brown, Dealer Strategic Planning Inc.

I t has been a tough two years for anyone selling tires. Chaos in Washington, high unemployment and a falter-ing economy has kept everyone in the retail business

scrambling to keep the bottom line in the black.In our business, motorists put off buying tires until the last

minute. Thankfully, the service side of the business remained strong, as customers maintained their aging vehicles.

Finally, we are seeing some bright spots on the horizon. Pent-up tire demand finally kicked in and the economy seems to be stabilizing.

Typically, independent tire dealers are optimistic, enthusiastic entrepreneurs expecting good things to happen. So, once you see a glimmer of hope, you immediately start thinking about hiring... expanding... buy-ing. Time to hire those techs that you’ve been needing; buy that equipment you’ve been deferring; take the family on a long, overdue vacation; give your employees the bonuses

that you couldn’t afford; improve your benefits for your hard-working employees. The list of things you could do goes on and on.

Stop. Before you make any grand changes in your business, consider these common mistakes that might be premature moves in our still fragile economy.

Mistake #1: Hire additional employees. Now that business is better, some think they should hire more people because most dealers believe it will get even busier and

they don’t want to miss sales. Always try to run lean and mean and show the profits before you consider hiring more people.

As you look at your financial results, payroll

should never be more than 45% of your gross profit. In our analysis, payroll includes all salaries: owner, store manager, outside sales, service manager, service techs, tire techs, book-keeper, office, etc. If it runs higher than 45% of your gross

profit, it will be tough to reach a 10% net profit for your business, and that should be everyone’s minimum goal.

On the other hand, there might be quality people out there still hungry for work, and you should always think about replacing mar-ginal employees with better skilled workers.

Mistake #2: Take time off. With the increase in sales, the owner now thinks he can take more time off since the sales are up. This often leads to the employees slacking off and not paying attention to the business. Oftentimes, the employees feel that if the owner can slack off, why can’t they?

If you do take some much deserved time off, make sure that you have controls in place to monitor your business in your absence, such as security cameras, mystery shoppers, daily sales re-ports, etc.

Mistake #3: Increase em-

Business insight

You survived... Now what?Avoid these six mistakes as you put the recession behind you

If payroll runs higher than 45% of your gross

profit, it will be tough to reach a 10% net profit.

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MTD March 2011

Business insight

ployee benefits. Now that sales have come back, some deal-ers think they can afford to pay more benefits, vacation, sick pay, bonuses and health insurance. Frequently, however, the increase in sales and gross profit are not enough to consider these additional expenses.

The dealer should wait until he has four solid months of increases in sales and gross profit and wait until he gets his profit and loss statement (P&L) to see if the company can afford more expenses. If the company’s profits are considerably higher, the dealer can then decide how much he can increase the benefits to the employees.

In our 20 groups, we have a goal of at least 10% net profit in a retail tire and service business, and many of our dealers are making much higher profits.

The employee benefits have a great impact on the bottom line. In our “Ideal Tire Store,” expenses (including benefits) should be no more than 23% to 25% of sales. Before you make any changes in your payroll or benefits, store owners should complete an analysis of their P&L and only make changes that are necessary and sustainable.

If you are good at communicating with your employees (and you should be), they will understand that a stable employer is much better than a pay increase that cannot be sustained.

Mistake #4: Purchase a new vehicle or equipment. Many times, the dealer is justifying the need for a new vehicle even though he knows he still can’t afford it. A shiny new truck is fun to buy, and you can’t beat that new car smell!

Always wait until you can verify that the new profits will afford this new purchase. You should do a careful analysis of how much it would cost to repair a vehicle or refurbish equip-ment before you buy.

Do a “payback analysis” to determine exactly how much you will be saving by replacing old equipment with newer models. If your equipment is working fine, don’t change it. If it needs

repair, look at the cost versus the lifetime of the equipment. Get your accountant involved in these important decisions.

Mistake #5: Offer more discounts. In order to get out of the recession faster or gain quick market share, some dealers may try to discount their products and labor. If you do this and don’t reduce your expenses, you will only cut your bottom-line profits.

Don’t discount. If you are having problems, now may be the time to try to reduce overtime pay and cut other expenses.

We recommend that dealers use a standard mark-up matrix for parts and tires and minimize “wheeling and dealing” at the counter. There will always be a cheaper place to buy parts or tires, but your customers are paying for your expertise and guarantee of satisfaction.

Saving a few pennies now may cost them a breakdown on the road. You should explain your “customer satisfaction” policy and stick to your mark-up matrix.

Mistake #6: Buying a competitor. Many dealers who run profitable operations may think this is the best time to purchase a competitor. Oftentimes, dealers are losing money and want to sell their business.

You may think that when you buy a company that is losing money, you can turn it around and make the same profits you make at your store. So often, however, you find out that its people are not as good as yours, the store has a bad reputation in the market, its products are old and obsolete, etc.

Our experience shows that if you purchase a business like this, you will take three years or more before you start to see the fruits of your labor. Be careful. If you are going to buy another tire store, be sure to purchase one that is well run and has a good name in the market. Use a business broker to help analyze the business cash flow and understand how much goodwill the business provides.

Consider this reality: If you make 5% net profit in your busi-

ness, for every $20 you spend on anything — benefits, vacations, bonuses, more people — you need to sell $400 in merchandise to break even on the spending. Do the math and carefully analyze your need and the opportunity before you plunge ahead and make decisions that might cost you in the end. ■

Norm Gaither is president of Dealer Strategic Planning Inc. (DSP), a company that promotes “20 groups” in multiple industries. He is a well-known consultant in the automotive aftermarket and has owned his own firm since 1984. Pat Brown, DSP’s vice president of marketing , was formerly vice president of global branding and communications for Cooper Tire & Rubber Co.

If you discount products and labor and don’t reduce your expenses, you will only cut your bottom-line profits.

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MTD March 2011

By Wayne Croswell

You probably have a software system today and, for the most part, it’s working OK. However, for a variety of reasons, you may be considering a change.

To make sure the upgrade is a success, follow these five steps.

1: Choose a host for your software There are two basic options. First, you can host the

software on a computer in your business. This means you must purchase a computer capable of handling the demands of your entire business.

In addition, you take responsibility of ensuring your data is backed up every day. There are devices that can automate backups, but it’s an additional expense and the responsibility to make sure it’s done properly remains with you. Also, you are responsible for the up-time of your system, the network infrastructure and the scheduling of software updates.

The second option is to have the software hosted by your software provider in a secure data center. This re-

moves the hassle of having a system in your business, and it places the responsibility for uptime and data backups with your software professional. This method is called “Cloud Computing.” With it, you no longer worry about hardware malfunctions, replacing outdated equipment, or upgrading as your business requirements outgrow its capabilities. Both options are viable.

2: Convert your existing data — or notYou can convert your data, but do you want to? Oftentimes,

data is poorly constructed and was set up in a way that if you had it to do over again, you would do it differently. If that’s the case, don’t convert it. You will end up perpetuating the problem. This is your chance to do it right.

Keep the old system accessible for a period of time for those occasional history lookups and start with a clean system. Most companies will allow a data import to the basic files via a spreadsheet. Take advantage of that for the files that have good data, such as a customer master file. In addition, make sure the new system has the ability to build inventories from standard databases such as tires.

Business insight

Upgrading your softwarePrevent the anxiety: Follow these five steps

34


3: Create your “must-have” and “nice-to-have” lists

You should put in writing the features and functions that are important to you and absolutely must have in a new system. This is a living list, and it’s OK to modify it as you go through the process. By having this list, you will not get confused with one system versus another, especially if you check off key features as you review each system. For example, if inventory manage-ment is very important to you, list what functions of inventory management are “must-haves.” Then, make sure you see those functions and how they work when you get a demonstration of the software.

4: Compare integrated vs. interfaced accounting

There are two schools of thought on this topic. Do you want your accounting system to be an integrated part of the point-of-sale system, or do you want to make sure the software interfaces to the popular accounting systems on the market today, such as QuickBooks, Peachtree or Great Plains?

Both methods are acceptable. The choice is a function of what makes you and your accountant the most comfortable.

5: Consider third-party interfacesIf you provide a lot of service work and sell parts,

you should make sure your software interfaces to an online parts ordering system for labor and parts estimates. You should have the ability to order tires electronically with your supplier right from the system.

If you do a lot of national account business, it might be important to have the ability to process the account right from your point-of-sale system. Make sure you have access to tire fitments, plus sizing, and basic tire information, including pictures.

When you upgrade to a new system, you have to learn how it works. Exactly how user-friendly is the system? It’s important to find out how difficult the new system may be to learn and to implement.

What type of training? How much does it cost? Does the new system have on-line training videos? The answers to these questions will help prepare you and new hires for working with the system after it has been implemented. ■

Wayne Croswell is president of WECnology LLC. WECnology provides complimentary advice on all aspects of technology for your tire business (visit www.wecnology.com). For a list of computer software and hardware providers, visit Modern Tire Dealer’s Online Directory.

You need to weigh all the pros and cons, including total cost of owner-ship, when choosing a software host, says Wayne Croswell.

Quik-Link: 800-687-1557 ext. 13116

http://www.wecnology.com


MTD March 2011

By Greg Smith

There was much for Hankook Tire America Corp. to celebrate during its annual dealer meeting at the Riviera Nayarit in Mexico in late January. The

company had just posted record unit sales of 12.6 million tires in the United States and Canada in 2010.

Total sales also were a record — slightly more than $1 billion, a 21% increase over 2009.

Soo Il Lee, president of Hankook Tire America, also reported that last year, Hankook’s parent company increased its global sales by 23% compared with the year before, reaching $4.7 billion, another record. Hankook Tire Co. Ltd. sold 81 million tires, an increase of 14%.

On top of this good news, Lee told dealers at its Partner’s Day 2011 event that 2011 will mark Hankook’s 70th year in business, and its 30th year in the U.S. It is now the seventh largest tire company in the world, Lee noted.

Lee told Modern Tire Dealer that he understands the symbolic nature of the company having North American sales of $1 billion, and says his personal goal for the company is to achieve this sales number in the U.S. alone for 2011.

To reach the number, Hankook “will take an aggressive, yet smart marketing approaches to enhance our brand equity. We will increase our marketing investment by more than 75%.

“With this great brand investment, we will implement holistic marketing activities, ranging from MLB (Major League Baseball) home plate signage to motorsports, TV commercials, consumer magazines, and more. This will help introduce consumers to our brand, get (them) to know our products and recommend Hankook to others.”

Much of the marketing

increase will come with additional television advertising, plus an expansion of the company’s MLB home plate signage program started in 2002. Hankook is contracted with 21 ballparks across the country.

Hankook is making a strategic shift in its target customer for 2011. Before, Hankook targeted adults aged 18 to 49 who were car owners, interested in cars and interested in extreme sports. Starting this year, the shift is to adult men, aged 25 to 49 who are car owners and have a household income of $50,000 and above.

The company is putting together a spring consumer promotion with $40 to $60 rebates on its Ventus V12 evo, Ventus V4ES, Optimo H727 and Ventus AS tires from April 1 through June 30.

For all the positive news, however, Lee told dealers fill rates continue to be a problem.

“In 2010, our stock levels were quite low, at times having only one month’s stock, making it almost impossible to meet sufficient fill rates.”

While the company’s stock level is “not expected to increase suddenly, given the fact of the unfavorable global supply situation,” the company is “going to find the best way to utilize our stock in the most effective way possible,” Lee said.

Focus on industry

Let the celebration begin! Almost all the news is good, says Hankook’s Lee

Hankook has expanded its Major League Baseball advertising. The company now has contracts with 21 ballparks, including Citizens Bank Park in Philadel-phia, to display its signage behind home plate.

“In the long run, we will eventually need a fac-tory on the American continent,” said Soo Il Lee, president of Hankook Tire America Corp.

36


To be a leading global tire company by 2020, the company plans to try its best to meet the needs of its dealers by increasing product capacity.

“Our company recently revealed an ambitious investment plan to build two new large tire factories: one in China and the other in Indonesia,” said Lee. (For additional information on the plants, visit www.moderntiredealer.com.)

“Upon completion of these facilities, we will be able to produce more than 100 million tires per year globally. Also, in the long run, we will eventually need a factory on the American continent, as well.”

In a private meeting with MTD, Lee said he “would like to see a plant in the U.S. in perhaps the next five to six years.”

There will be new challenges and opportunities in 2011, according to Lee.

“The global economic crisis, which hit two and half years ago, is getting somewhat better but still casting its shadow over the business in general.

“Manufacturing costs of producing tires is skyrocketing; because of this, there will be substantial price issues within the tire industry. On the other hand, there could be other demand issues if oil prices keep trending up as they did four years ago.

“On the positive side, though, the automotive industry is seeing positive gains, even though it’s still far behind its peak of years past,” said Lee. “Nevertheless, this will directly help our future business.”

Hankook has been forced to bring in more of its tires from

Korea instead of China since the tariffs were put in place, which Lee also views as a positive.

“This has helped us to enhance our product screen to more premium tires.” ■

No ‘new’ tires, but...Hankook announces launch dates

No new tires were introduced at the Hankook Tire America Corp. dealer meeting, but the company did announce more targeted launch dates for tires in the pipeline.

The company’s eco-friendly tire, the enfren eco, should be making its North American debut in the second half of the year. The tire is designed for hybrid cars, such as the Toyota Prius and the Honda Civic hybrid. It will come in four 15-inch and one 16-inch sizes.

The Dynapro HT, a premium on-highway tire for light trucks and SUVs, is also targeted for a second half of the year launch. It will have a 700 AB UTQG rating.

The Optimo H426, a luxury touring all-season tire, will increase its size offering to 28 by the second quarter.

On the truck tire side of the business, the company intends to have three tires ready for the second half of 2011: its premium regional-haul all-position tire, the AH24; a premium regional-haul drive tire, the DH06; and the AH15, a wide-base all-position tire.

Quik-Link: 800-687-1557 ext. 13117



MTD March 2011

By Bob Ulrich

Frank Seiberling founded the Goodyear Tire & Rubber Co. in 1898. He was hard driven, and had the vision to see the company well into the next century and

beyond.Rich Kramer is the 113-year-old company’s chairman and CEO.

He is arguably “More Driven” — at least based on Goodyear’s new tag line — and plans to follow Seiberling’s lead.

“There are no substitutes for (tires and wheels) on the horizon,” he said at the 2011 Goodyear Dealer Conference in Grapevine, Texas, in January. “We’ve been around for 100 years, and we will be around for another 100 years, no doubt about it.”

Kramer told the attendees that technology and growth are going to drive the industry. Accordingly, Goodyear plans to focus on the following:

1. Innovation. “At the end of the day, it’s all about product.”

2. Goodyear’s business model. “We can’t be all things to all people. We won’t be.” (see sidebar).

3. Supply chain. The key, he says, is “to make sure we’re only making tires you want in the marketplace” as efficiently as possible. He also admitted that supply has been difficult, and that “fill rates were not where we wanted them to be.”

4. People. “Our people are (here) to help you grow your businesses.”

“People buy our products and people sell our products,” he said. “We don’t just make tires. We make people’s lives better.”

New consumer products Goodyear also introduced three premium Goodyear brand

tires to its dealers, including the next generation Assurance TripleTred.

The Goodyear Assurance TripleTred All-Season is a premium touring tire featuring the same three unique tread zones as its predecessor (the water, ice and dry zones are self-explanatory). It also has a directional tread pattern.

As the tire wears, Evolving Traction Grooves are designed to appear to help maintain traction in the rain and snow.

It will be available in 22 metric and P-metric sizes rang-ing from 195/60R15 88H to 215/55R18 95H during the summer.

The two other Goodyear tires are the Eagle F1 Asymmetric 2 and the Ultra Grip Ice WRT with a passenger tire design.

The Eagle F1 Asymmetric 2 ultra-high performance tire was designed using race-derived technologies and Goodyear’s exclusive ActiveBraking Technology. In addition, an advanced tread block pattern helps reduce excessive road noise.

The tire will be available in North America this spring in 28 Y-rated sizes ranging from 245/40R17 to 255/35R20.

The Ultra-Grip Ice WRT was introduced in light truck and SUV sizes last year. In August, 27 S- and T-rated passenger car sizes will be added to the lineup. ■

Focus on industry

More Driven, more focusedFor Goodyear’s Rich Kramer, the future is now

You scratch our back...Goodyear won’t be all things to all dealers

Goodyear Tire & Rubber Co. revealed a very clear retail channel and category strategy at its recent dealer conference.

Todd Pickens, senior director of channel sales, divided retail tire dealers into three categories:

1. “those whose strategies are most aligned with ours.”2. “those whose strategies are somewhat aligned with

ours.”3. “those whose strategies are a mismatch with ours.”

Pickens told dealers that Goodyear highly values the formats “where consumers have a seven or eight out of 10 chance of leaving your store with a G3 (Goodyear, Dunlop or Kelly) product.”

“We’re going to work to get those in the second group, those who haven’t made up their minds or are only ‘some-what aligned,’ to join the first kind of customer I de-scribed.”

Goodyear will not focus on the third group of dealers, he said.

“We will be consistent in our efforts to drive consum-ers to outlets where they have the best chance of buying Goodyear tires.”

There won’t be a “different message for different (dealers),” says Goodyear’s Rich Kramer.

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Quik-Link: 800-687-1557 ext. 13118

MTD March 2011

SUBJECT VEHICLES: Vehicles built since 1999 with active wheel speed sensors.COMPLAINT: False cycling of wheel speed sensors.CAUSE/SOLUTION: Tone wheel damage or rust build-up, an incorrect sensor air gap or debris on the wheel speed sensor tip. Test the system using the following procedures.

Wheel speed sensors and how we test them have been changing. Currently, two types of wheel speed sensors are in use: magnetic inductive (passive) and magneto resistive (active).

Passive sensors have been around since the early days of the anti-lock brake system (ABS). These are the sensors that function on the generator principle. The sensors work with the toothed tone wheels to monitor and provide the anti-lock brake module (ABM) with wheel speed information. The actuator is a toothed tone wheel that rotates with the individual wheel. Each tooth on the tone wheel acts as an actuator for the wheel speed sensor. As the tone wheel rotates, the teeth go in and out of the proximity of the sensor. The result is an alternating current (AC) voltage that is generated in the speed sensor coil by magnetic lines of force fluctuating as the tone wheel passes by the magnetic sensor.

The output of the wheel speed sensor can vary from vehicle to vehicle due to: winding type, air gap, magnetic strength of sensor, metal properties of the tone wheel and tone wheel speed.

As we have learned over the years, these types of systems have been prone to false cycling, which is the term used to describe an ABS cycle even though the road conditions do not dictate the need for this cycle. This condition is very prone to happen at slower wheel speeds. The customer may describe the symptom as:

• “Something is wrong with my brakes,” or• “The ABS system is operating as I am coming to a stop sign,” or• “The brake pedal is dropping while I am braking.”

This happens mostly due to tone wheel damage or rust build-up on the tone wheel. An incorrect sensor air gap will cause this condition, as well as debris on the wheel speed sensor tip. Be sure to check these areas.

Active wheel speed sensors have been in use since 1999 on models using the Teves Mark 20e system. The Teves Mark 25, Teves Mark 25e, TRW EBC-340, some EBC-125 and the late model Bosch systems use this style sensor as well. This style sensor helps increase performance, durability and low speed accuracy. In other words, these sensors do not seem to have the false cycle problem like the passive sensors do. Most vehicles with active sensors still use a toothed tone wheel which acts as the trigger mechanism for the sensor. The LX vehicles (Chrysler

300, Dodge Magnum, and Dodge Charger) use a magnetic encoder in place of a traditional tone wheel. The encoders have north/south pole magnets imbedded into the ring. The ring is then pressed on the axle shaft just like a tone wheel. In either case the result is a digital square wave signal.

On this system, the ABM sends battery voltage to the sensor to power it up. The sensor, in turn, supplies the ABM a constant 7 milliamp (mA) signal on a signal return circuit. Depending on the tone ring or magnetic encoder position, this 7 mA signal is turned on or off. The output of the sensor sent to the ABM is a Direct Current (DC) voltage signal with changing voltage and current levels. The ABM monitors the changing digital signal from each wheel speed sensor and is interpreted

as wheel speed.It is important to note two

things: 1) If there is no battery voltage to this sensor, then the sensor will not work at all, and 2) The signal return circuit is where the sensor can be tested. The normal voltage level, as the wheel is rotated, switches between approximately 0.8 volts and 1.6 volts.

Then along comes Teves Mark 25e. This system uses

the active wheel speed sensors, but testing them is different; it is tested on the power supply wire. To make things more complicated, the voltage only changes 0.2 volts as the wheel is rotated! A normal voltage switch on this system is approximately 12 volts to 12.2 volts. To make matters worse, all of the service information available at the time of this article is wrong! Currently, the service information shows testing the sensor on the signal return wire and does not have the correct voltage levels.

Testing this system can also be accomplished using a labscope. Instead of putting the ground lead on ground, put it on battery voltage. Now, using the channel one lead of the scope, watch the signal on the sensor power supply wire. Set the scope to a low voltage range such as 0.5 volts per division. As the wheel is slowly rotated, a square-wave signal can be seen. The voltage level is still only changing 0.2 volts, but with the scope set up like this, the signal is easier to see.

Tip of the day: Make sure you know which ABS system you are working with as they need to be tested differently. The type of ABS system can be identified by checking the “Module Information” on a compatible scan tool. Another way to identify sensors is to use a wire diagram. If it lists a sensor as “12 Volt Supply Circuit,” it is an active wheel speed sensor system. ■

Data provided by Identifix Inc. For more information, call (800) 997-1674 or visit www.identifix.com.

NVH solutions

Passive vs. activeHow to make sense of wheel speed sensors

The Chrysler 300 LX is one model us-ing active wheel speed sensors.

40

http://www.identifix.com

Quik-Link: 800-687-1557 ext. 13119

MTD March 2011

SUBJECT VEHICLE: 2010 Ford F-Series.SENSOR IN TIRE? No (sensors/transmitters are installed in wheels).RESET PROCEDURE? Yes.SPECIAL TOOLS NEEDED? Yes (T10 Torx, TPM Activation Tool (204-363).

When a 2010 Ford F-Series vehicle is moving 20 mph or greater, the tire pressure monitoring system’s wheel-mounted tire pressure sensors transmit radio frequency signals to the Smart Junction Box (SJB) every 60 seconds. Each transmis-sion is compared against a low-pressure limit (pressure listed on the vehicle certification label minus 25%, which will be about 6 to 9 psi). If a tire’s pressure falls below this limit, the SJB sends a message to the instrument cluster, which then illuminates the low pressure warning indicator.

To remove an old sensor, follow these steps.

1. Remove the wheel and tire. The valve stem is connected to

the TPMS sensor, so do not pull the valve stem from the wheel to avoid damaging the sensor.

2. Remove the valve stem core and fully deflate all air from the tire.

3. Remove the tire from the wheel following the tire manufacturer’s directions.

4. Remove the TPMS sensor from the valve in the fol-lowing sequence (see Figure 1):

a. Using a T10 Torx, remove the valve stem-to-TPMS sensor screw.

b. Carefully and firmly pull the sensor straight down and separate it from the valve stem.

5. Using a suitable valve stem puller and a wood block, remove the valve stem from the wheel.

6. If the TPMS sensor is being reused, inspect the TPMS sensor for damage and install new parts as necessary.

Before installing the replacement sensor, the valve stem must be installed onto the TPMS sensor and then installed into the wheel as an assembly.

Now you can install the replacement sensor by following these seven steps.

1. Install a new valve stem onto the TPMS sensor, tightening the valve stem-to-TPMS sensor screw to 13 in.-lbs. (1.5 Nm). It is important to pull the valve stem and TPMS sensor assembly through the wheel rim hole in a direction parallel to the valve stem hole axis.

2. Lubricate the valve stem with suitable fast-drying, corrosion-inhibiting tire bead lubricant and install the valve stem and TPMS sensor assembly into the wheel

using a block of wood and a suitable valve stem installer. Do not mount the tire at this time.

3. Make sure the valve stem rubber is fully seated against the wheel.

4. Position the wheel on the turntable of the tire machine, then lubricate and position the bottom bead of the tire on the wheel.

5. Mount the tire according to the tire manufacturer’s instructions being certain to position the machine arm at 6 o’clock with respect to the location of the valve to avoid damage to the sensor (see Figure 2).

TPMS

Focusing on the Ford F-Series Smart Junction Box sends a message if pressure drops

Figure 2Figure 1

Quik-Link: 800-687-1557 ext. 1312042


6. Inflate the tire to the pressure specified on the vehicle certification label on the driver door or door pillar.

7. Install the wheel and tire. NOTE: If a new sensor has been installed it must be activated and trained.

To activate the new sensor(s), follow these steps:

1. Turn the ignition switch to the “on” position.2. Place the activation tool on the left-front tire sidewall at

the tire valve stem. For each successful TPM sensor response a green light will flash and a beep will sound on the activation tool.

3. Press the test button on the activation tool to activate the TPM sensor. For best results, activate each sensor twice.

4. Perform steps 2 and 3 for each re-maining tire.

Now you’re ready to train the new sensors.

1. Turn the ignition switch to the OFF

position, then press and release the brake pedal.

2. Turn the ignition switch from the OFF position to the RUN position three times, ending in the RUN position. Don’t wait more than one minute between each key cycle.

3. Press and release the brake pedal.4. Turn the ignition switch to the OFF

position.5. Turn the ignition switch from the

OFF position to the RUN position three times, ending in the RUN position. Don’t wait more than one minute between each key cycle. It may take up to six seconds to activate a tire pressure sensor. During this time, the activation tool must remain against the sidewall of the tire.

6. Place the activation tool on the left-front tire sidewall at the tire valve stem. Press the test button on the activation tool. The horn will sound briefly to indicate that the tire pressure sensor has been recognized by the SJB.

7. Within two minutes after the horn sounds, place the activation tool on the right-front tire sidewall 180 degrees from the valve stem for strap and cradle type sensors or at the valve stem for valve stem-mounted sensors. Repeat procedure for the right-rear and left-rear tires.

When the tire training procedure is complete, the message center (if equipped) will display “Tire Training Complete.” For vehicles not equipped with a mes-

sage center, successful completion of the training procedure will be verified by turning the ignition switch to the OFF position without the horn sounding. If the horn sounds twice when the ignition is turned off, the training procedure was not successful. ■

Information for this column comes from Mitchell 1’s ”Tire Pressure Monitoring Systems Guide” for domestic and import vehicles through 2010. Headquartered in Poway, Calif., Mitchell 1 has provided quality repair information solutions to the automotive industry for more than 80 years. For more information, visit www.mitchell1.com.

Quik-Link: 800-687-1557 ext. 13121

http://www.mitchell1.com


MTD March 2011

Products

Kumho Ecsta 4X UHP tireThe Kumho Ecsta 4X ultra-high perfor-mance all-season tire will replace the Ecsta ASX. It 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. The tire will be one of five 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, the company notes.KUMHO TIRE CO.Quik-Link: (800) 687-1557, ext. 13170www.mtdquiklink.com/13170

ALI’s 2011 lift guide releasedThe Automotive Lift Institute Inc. (ALI) has released the 2011 edition of its “Vehicle Lifting Points for Frame-engaging Lifts,” an updated, quick-reference, single-source manual for lifting point information as recommended by vehicle manufacturers. The 60-page Lifting Point Guide (LP-G) for domestic and imported cars and light trucks uses 200 undercarriage images to cover the most recent 20 model years. AUTOMOTIVE LIFT INSTITUTE INC.Quik-Link: (800) 687-1557, ext. 13171www.mtdquiklink.com/13171

Quikrete Oil Stain RemoverThe Valspar Corp.’s Quikrete Oil Stain Remover absorbs and lifts tough stains from concrete without scrubbing, says the company. Easy to use, it is ideal for service bay floors and other concrete surfaces, leaving them with a profes-sional look, the company adds. THE VALSPAR CORP.Quik-Link: (800) 687-1557, ext. 13172www.mtdquiklink.com/13172

Bartec EZ-sensor starter kitsBartec USA LLC’s EZ-sensor starter kits include the new pro-grammable TPMS replacement sensors from Schrader. The EZ-sensor programming process includes both the sensor ID and protocol, making it a flexible and easy solution to common TPMS repair issues such as broken or missing sensors, sensors with flat batteries, or sensors for seasonal tires, the company says. To program an EZ-sensor, use a Bartec-made TPMS tool (OBD-style) and select the vehicle make, model and year and then follow the prompts on the tool. Once programmed to a specific vehicle application, install the EZ-sensor as you would any replacement TPMS sensor. “The EZ-sensor is like a blank CD ready to be written to,” says Scot Holloway, general manager at Bartec USA. The EZ-sensor starter kit contains

everything needed for the current Tech400 user to get started using the EZ-sensor product right away. It includes the EZ-sensor programming fixture, application guide, user guide, quick start guide and training DVD. Also in the kit are the optional clamp-in valve service packs to replace clamp-in TPMS sensors.BARTEC USA LLCQuik-Link: (800) 687-1557, ext. 13173www.mtdquiklink.com/13173

Bosch A/C Refrigerant Handling SystemsThe Bosch Group’s new ACS 620 and ACS 625 (in photo) Digital A/C Refrigerant Handling Systems are fully automated, accurate and user friendly, and are fully compliant with the J2788 standard. Featuring a swivel control turret housing with an LCD display and easy-to read gauges, the new R134a refrigerant recov-ery/recycle/recharge systems are equipped with a large 6 CFM vacuum pump, an easy-access refrigerant filter for quick maintenance and a manifold assembly that increases machine uptime. Both models are compatible with TechALERT, a wire-less technician paging system de-signed to increase shop productivity by providing operating status updates to the technician while they are work-ing on another vehicle elsewhere in the shop. When equipped with this option, the TechALERT sends a wireless signal to a synced remote receiver that the technician carries. The operation status is provided via a series of visual, audible and vibrating alerts to the technician — eliminating the need to run back and forth across the shop to check on the status of the machine. Both the ACS 620 and ACS 625 units also offer foam filled tires, easy-access refrigerant filter change through the removable side pocket, in-line filters, a fully automated service process, and password protection and the ability to assign technician operator numbers. The ACS 625 offers the shop additional features including three temperature probes, a dual vacuum process, high-voltage (hy-brid) compatibility, a standard integrated printer which provides customer printouts of service.THE BOSCH GROUPQuik-Link: (800) 687-1557, ext. 13174www.mtdquiklink.com/13174

Tire specs now on Mitchell 1’s OnDemand5.comMitchell 1’s updated OnDemand5.com Version 2.5 software features the Tire Fitment Tab for fast access to tire information such as tire sizes, inflation pressures and wheel/lug nut torque specifications. Launched in 2002, OnDemand5.com provides technicians with the features and information of OnDemand in an online program. Today, the company says OnDemand5.com delivers comprehensive data for 1983 through current domestic and import vehicle models and includes the new OnDemand Live feature, where users view and share tips, as well as access clear illustrations and full-color wiring diagrams, complete diagnostics, tech bulletins and recalls, scheduled maintenance with labor times, automatic monthly data updates and OEM parts and pricing.MITCHELL 1Quik-Link: (800) 687-1557, ext. 13175www.mtdquiklink.com/13175

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http://www.mtdquiklink.com/13170






Quik-Link: 800-687-1557 ext. 13122

MTD March 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

ASA Tire 35 13116 www.mtdquiklink.com/13116

ATE Premium Brake Parts 43 13121 www.mtdquiklink.com/13121

Atturo Tire Corporation 14 13107 www.mtdquiklink.com/13107

Bartec USA 42 13120 www.mtdquiklink.com/13120

BKT Tires, North America 10 13105 www.mtdquiklink.com/13105

Cooper Tire 7 13103 www.mtdquiklink.com/13103

Cornerstone Powered by ASA/Bridgestone IFC 13101 www.mtdquiklink.com/13101

CRC Industries Inc. 15 13108 www.mtdquiklink.com/13108

Dealer Strategic Planning Inc. 45 13122 www.mtdquiklink.com/13122

EcoExpress Tire Centers 31 13114 www.mtdquiklink.com/13114

Ford Parts 11

Gabriel Ride Control Products Inc. 41 13119 www.mtdquiklink.com/13119

General Tire 23 13111 www.mtdquiklink.com/13111

Greenball Corporation 33 13115 www.mtdquiklink.com/13115

Hercules Tires 17 13109 www.mtdquiklink.com/13109

Kenda USA IBC 13123 www.mtdquiklink.com/13123

Kumho Tire USA 5 13102 www.mtdquiklink.com/13102

KYB America LLC 25 13112 www.mtdquiklink.com/13112

Michelin North America Inc. 13 13106 www.mtdquiklink.com/13106

NAPA Auto Parts 9 13104 www.mtdquiklink.com/13104

Nexen Tire America Inc. 21 13110 www.mtdquiklink.com/13110

Pirelli Tire North America 29 13113 www.mtdquiklink.com/13113

Reliable Int’l Exhibition Services Co. Ltd. 37 13117 www.mtdquiklink.com/13117

TCS—Tire Power Software 39 13118 www.mtdquiklink.com/13118

Tire Centers LLC OBC 13124 www.mtdquiklink.com/13124

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MTD March 201148

MTD March 201150

Quik-Link: 800-687-1557 ext. 13123

Quik-Link: 800-687-1557 ext. 13124

modern tire dealer march 2011

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