Modern Tire Dealer April 2011

www.moderntiredealer.com

THE INDUSTRY’S LEADING PUBLICATION

APRIL 2011 • VOL. 92, NO. 4 • TEN DOLLARS • A BOBIT PUBLICATION

Next-gen nitrogenCheck out the latest in

cutting-edge equipment

A lack of casings hasn’t stopped their plans

to expand

OTR tire trends in 2011How will a 250% increase in natural rubber costs impact the industry?

The Top 100 retreaders in the U.S.

Increase your customer base for free by googling

on Google

MTD 991 991A.indd COV1

Quik-Link: 800-687

MTD_992,A1, 992A.indd 1MTD 992 A1 992A i dd 1 4/14/11 10:24:33 AM

MTD_split_singles.indd 1MTD_split_singles.indd 1 4/27/11 12:39:04 PM4/27/11 12:39:04 PM

http://link.argifocus.com/28K-101

7-1557 ext. 14101

MTD_992,A1, 992A.indd 1 4/14/11 10:24:33 AM4/14/11 10 24 33 AM

MTD_split_singles.indd 2MTD_split_singles.indd 2 4/27/11 12:39:04 PM4/27/11 12:39:04 PM


Quik-Link: 800-687-1557 ext. 14102

MTD_A2.indd 1MTD_A2.indd 1 4/14/11 10:26:22 AM4/14/11 10:26:22 AM


www.moderntiredealer.com

Modern Tire Dealer is a proud member of:

TIRE RETREAD & REPAIR INFORMATION BUREAUTRIBTRIB

MemberAn Industry Association

Features18 Next-gen nitrogen

Dealers have been fi lling tires with nitrogen for

decades. New equipment will keep this service on the

cutt ing edge

Commercial Tire Dealer™21 A case for casings

If they can get them, our Top 100 retreaders will retread and sell them

24 Top 100 retreaders in the U.S.

30 A Tarullitour de force

California retreader welcomes plant visitors

31 Giant OTR tires: a true portrait of chaosManufacturing process, limited number of suppliers can

aff ect worldwide supply

33 OTR tires in 2011Rasey addresses rising rubber costs

and mining trends

36 Commercially Viable

On the cover:Josh Lambrou installs an inner envelope at Ziegler Tire &

Supply Co.’s retread plant in Massillon, Ohio.

4 EditorialBrand awareness may be overrated

6 OnlineKeeping an eye on tire prices

8 News/viewsJapan mourns, rebuilds. Tiremakers help restore the devastated island nation

16 Ludwig ReportStock prices suggest better times for the tire industry

37 Business insightNew tire customers for free! Take advantage of googling on Google

40 Business insightThe primary business of business is busi-ness! To prosper, you must be prepared and focused

44 Focus on industryWinter? Spring? Summer? General G-Max doesn’t care

48 NVH solutionsDiagnosing VW Passat and Audi A4 ABS/EDL-equipped vehicles

50 TPMSHi-yo Silverado! Chevy models feature two different kinds of sensors

59 Your turnStop re-inventing the wheel! ‘Relationship selling’ is still your key to survival

52 Products

54 Quik-Link

56 Classifi ed

Th e Industry’s Leading PublicationApril 2011, Volume 92, Number 4

Departments

iers

1ss

MTD_3-11.indd 3MTD_3-11.indd 3 4/14/11 9:48:08 AM4/14/11 9:48:08 AM

MTD April 2011

Eighty-five percent of tire purchasers are directly infl uenced by you.” Th ose

11 words packed as much punch as anything else said at the 2011 Goodyear Dealer Conference in January.

Th e speaker was Jack Winterton, chief customer offi cer for Good-year Tire & Rubber Co.’s North American Tire business unit. He has been with the company for 37 years, which gives him insight into how tire dealers and consumers think during the tire-buying process.

“With 85% of tire purchasers directly infl uenced by you, our reputations — yours and Goodyear’s — are intently connected. I can’t think of another consumer product whose brand image is as closely linked to the place where the product is purchased.”

Th at makes you unique, and prett y much the deciding factor when it comes to brand.

Winterton isn’t just waxing philosophic. Results from Modern Tire Dealer’s new “Retail Tire Customer Survey” bear him out.

According to the online survey, 52.5% of the retail customers who come into a dealership to buy tires do not specify brand. Another 25.7% specify a tire brand, but are convinced by the tire dealer to make a diff erent choice.

So, close to 78% of your tire buying custom-ers buy the brand you suggest to them, based on their driving needs, fi nancial means and, in some cases, preferences.

Th e remaining 21.8% of them specify a brand and buy that brand. However, there’s more to a tire than just a brand name. How oft en do you suggest the line, or even the size?

I thought so. Add it all up, and Winterton’s 85% estimate might even be a litt le low. I have talked with many dealers over the years who believe their infl uence is greater than 85%.

Th ere are other corroborating sources. A 2005 survey from Virginia Polytechnic Institute and State University puts the percentage of consumers who ask for a tire brand at the point of purchase at 30% or less.

When J.D. Power & Associates used to track original equip-ment tire brand loyalty, it discovered that light vehicle owners replaced their OE brands with the same brands about one third of the time. Keep in mind those were fi rst-replacements. What about the second set of replacement tires?

Our “Retail Tire Customer Survey” addresses the loyalty issue brand by brand for both the fi rst and second replace-ment sets. Take Michelin, for example.

When vehicle owners replace Michelin OE tires for the fi rst time, 32.3% of them buy Michelin again. No other OE brand in our study received loyalty ratings close to that percentage.

Goodyear is second at 24.3%, meaning nearly one-quarter of domestic vehicle owners replace their Goodyear OE tires with the same brand the fi rst time around. Th e Bridgestone brand is third at nearly 23%, followed by Firestone (19%), BFGoodrich (17.6%), Yokohama (13.2%), Continental (12.7%) and Toyo (11.8%).

Rounding out the OE brands are Hankook (11.1%), Dunlop (11%), Pirelli (10.2%), Kumho (10.2%) and General (9.1%).

When customers replace their tires for the second time, Michelin still comes out on top when it is the OE brand, although the percentage drops to 28.6%.

Not surprisingly, Michelin is among 11 brands with lower percentages the second time around. Only Hankook (11.7%) and General (9.3%) improved their actual or perceived brand loyalty.

Respondents to our survey clearly listed Michelin as the brand most likely to be “the same brand” when both the fi rst

and second sets of replacement tires are taken into consideration. Yet Michelin OE tires are only replaced with Michelin replace-ment tires 30% of the time.

Michelin is batting .300, which is a good batt ing aver-age. Independent tire dealers are batt ing .700, which is a great average. Th at is why typical tire dealers each handle more than 11 diff erent brands. A multiple

brand strategy gives them options, and allows them to take advantage of more profi table opportunities.

Your infl uence never seems to change, which is why the “70/30 Rule” is a generally accepted principle in our industry. It states that from start to fi nish, you determine the tire brand the customer buys 70% of the time.

Th e rule does not directly take into account your help when customers ask for a brand, which happens about 30% of the time. About half of them will be switched over to another brand, or 15% of the total.

In all, under the “70/30 Rule” and its ramifi cations, you signifi cantly infl uence 85% of the tire brand purchases.

Perhaps Winterton based his estimate on the “70/30 Rule.” Given all the additional statistical research and data available about tire-buying habits, he could have gott en his number from anywhere. And everywhere. ■

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

Editorial

Brand awareness may be overrated

By Bob Ulrich

I have talked with many dealers who

believe their infl uence is greater

than 85%.

4


Quik-Link: 800-687-1557 ext. 14103



MTD April 2011

Online

Keeping an eye on tire prices

There have been dozens of announcements from tire manufacturers concerning consumer and commercial tire price increases thus far this year. How’s a tire dealer supposed to keep track of them?

By turning to www.moderntiredealer.com!Simply check on our breaking news item, “Check out the LATEST price increases

here” on our home page. By clicking on the link, you will get an up-to-the minute list of the tire price hikes implemented by tire manufacturers, broken down by tire type.

Th e date the increase will be (or was) implemented in 2011 by each manufacturer is included, along with the tire lines aff ected. Reasons for the increases are provided, such as hikes in the cost of raw materials like natural rubber.

And while you’re on our Web site, check out the related blog by Editor Bob Ulrich, “Gett ing price increases to stick is a sticky wicket for manufacturers and dealers.”

Th e average percent increase in 2010 for passenger and light truck tires was 12.1% and 12.5%, respectively, Ulrich notes. And the price of natural rubber increased more than 60% last year, and it is up 9% this year, he says. “Tire company’s need to recoup their expenses, and in a perfect world, they raise prices, tire dealers raise their prices accordingly, and consumers pay the prices,” Ulrich says in his blog. But will the prices stick, he muses.

And check out our annual Facts Issues on our Web site for historical information on tire pricing. As an example, go to Industry Resources in the menu bar, and then scroll down to Research and Stats. Look for Charts and Statistics, and click on Sales and Pricing. We chart average retail prices for a couple of major brand and low cost radials, as well as list median selling prices for two passenger tire sizes in our Facts Issues from 2011 and back through 2001!

So for all the information you need on current and past tire pricing, go to www.moderntiredealer.com.

3515 Massillon Road, Suite 350Uniontown, Ohio 44685(330) 899-2200, fax (330) 899-2209 Web site htt p://www.moderntiredealer.com

Editor: ROBERT J. ULRICH [email protected] Managing Editor: LORI L. MAVRIGIAN [email protected] Editor: BOB [email protected]

Contributors: Auto Service/Technical: MIKE MAVRIGIANTraining/Tire Service: KEVIN ROHLWINGIndustry Analyst: SAUL LUDWIG Art Director: NEAL WEINGART [email protected] Production Manager: KA REN RUNION [email protected]

Publisher: GREG SMITH [email protected]

South and Texas: GREG SMITH [email protected](330) 899-2200, fax (330) 899-2209

Midwest: MICHELE VARGO [email protected](330) 899-2200, fax (330) 899-2209

West Coast: JOHN DYAL Th e Dyal [email protected] (760) 451-5026, fax (760) 451-5039

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

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

Classifi ed Sales: DONNA STEWART [email protected](405) 513-6794, fax (360) 406-7576

Reprint Sales: KA REN RUNION [email protected](330) 899-2200, fax (330) 899-2209

Customer/Subscription Service: (888) 239-2455, fax (888) 274-4580

Modern Tire Dealer is a Bobit PublicationExecutive offi ces: 3520 Challenger St. Torrance, CA 90503Chairman: Edward J. BobitCEO & President: Ty F. BobitChief Financial Offi cer: Richard E. Johnson

Total access — totally freewww.moderntiredealer.com

MODERN TIRE DEALER (ISSN 00268496) (CDN IPM #40013413) (USPS #369-170) is published monthly by Bobit Business Media, 3520 Challenger St., Torrance, California 90503-1640. Periodicals postage paid at Torrance, CA 90503-9998 and additional mailing offi ces. POSTMASTER: Send address changes to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks for address changes to take effect. Subscriptions in the U.S. and its possessions, $65; Canadian, $99; Int’l surface mail, $99; Int’l airmail, $198. Single copies, $10, except the January Facts Issue, $30. Address all subscription correspondence to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks to receive your fi rst issue. Please address Editorial and Advertising correspondence to MODERN TIRE DEALER, 3515 Massillon Road, Suite 350, Uniontown, OH 44685-6217. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. For your information: We sometimes make our subscriber information (i.e. fax, e-mail or mailing address) available to carefully screened organizations whose products and services may be of interest to you. If you prefer not to have your information made available, please write MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068.

6


Quik-Link: 800-687-1557 ext. 14104



MTD April 2011

By Bob Bissler

On March 11, 2011, a 9.0 magnitude earthquake and tsunami struck the Pacifi c Coast of Tohoku in northeastern Japan. While the death toll and

destruction there is tragically extensive, the four main tiremak-ers — Bridgestone Corp., Sumitomo Rubber Industries Ltd., Toyo Tire & Rubber Co. Ltd. and Yokohama Rubber Co. Ltd. — suff ered no major facility damage and no loss of life.

As of press time, the confi rmed death toll was 13,392, accord-ing to Japan’s National Police Agency. Th at number is certain to rise, as another 15,133 were still missing. Another 2,876 were listed as injured. Th e total cost to the Japanese government is expected to exceed 25 trillion yen ($300 billion).

Th e Japanese people are gradually recovering. As they do, Japan’s tire companies have resumed certain levels of produc-

tion and are playing major roles in the recovery eff ort. Since several of Japan’s nuclear power plants were damaged and the power grid infrastructure was disrupted, electricity is an issue in resuming full production at all the tire plants. Th e country continues to employ rolling blackouts to conserve power.

Th e worst damage took place at the Fukushima Daiichi nuclear power plant. It continues to emit high levels of radiation. Th e 78,000 people evacuated in a 12-mile radius around the plant may not be allowed back in their homes for months.

Deputy Finance Minister Mitsuru Sakurai told reporters that authorities are planning a supplemental budget to im-mediately inject money and resources into the hardest hit areas. To help in that eff ort, tire companies stepped forward and off ered assistance. Monetary donations have been made by Bridgestone Corp., Bridgestone Americas Inc., Continental AG, Toyo and Yokohama. In addition, 31 Inc. donated 4,500 Emergency Tire Repair Kits to the relief eff ort.

Bridgestone Corp. has fi ve facilities that were aff ected by the catastrophe. All were immediately shut down and idled. Th e company has since verifi ed that production could safely resume

at all the plants. Because truck and bus tires were required for the recovery of the devastated areas, they were the company’s fi rst priority when production was restarted.

Th e Bridgestone plant in the city of Yokohama resumed partial production on March 14. It produces industrial prod-ucts and construction materials. Th e Tokyo factory resumed production on March 15; it produces passenger, truck and bus tires. Both the Tochigi factory, which produces passenger tires, and Kuroiso factory, which supplies steel cord and bead wire, restarted on March 16.

Bridgestone’s passenger and motorcycle tire plant in Nasu restarted production on March 25.

Sumitomo reported that its Shirakawa City factory suf-fered no critical damage. On March 22 it resumed partial production of passenger and light truck tires. Truck and bus tire production resumed a few days later.

Since the plant is located in Fukushima prefecture, where the troubled Daiichi Nuclear Power Plant is located, electricity will continue to be an issue. Sumitomo says production will

be increased gradually, depending on power supply, distribution, materials and other circumstances.

Toyo’s Fukushima industrial rubber products and auto parts manufactur-ing plant is also located in Fukushima prefecture. Full production of some of its products resumed March 24.

Toyo’s Sendai manufacturing plant in Miyagi prefecture was fortunate to escape destruction in the coastal town that was hit hard by the tsu-

nami. The plant was without power until March 18 and recommenced limited production on March 24. Limited tire shipments resumed March 25. Th e Sendai plant manufactures passenger tires.

Production at both plants will be increased gradually. Toyo says products will be manufactured on a restricted basis due to the limited availability of electricity, fuel and raw materi-als. In addition, production will remain limited while Japan’s transportation infrastructure and fuel supplies are restored.

Yokohama announced plans for resuming production on March 18. Production at its Mishima, Hiratsuka, Hiratsuka-East, Hamatite (Nakahara), Nagano and Ibaraki plants was stalled by the earthquake. Th e week of March 21, production resumed at fi ve of the six plants. Yokohama said the plants will be restored to full capacity as electricity and raw materials return to normal levels.

Th e earthquake damaged plant buildings and equipment at the Ibaraki plant. Yokohama has made the necessary repairs and is gradually resuming production at the plant while monitoring safety carefully. ■

News/views

Japan mourns, rebuildsTiremakers help restore the devastated island nation

Bridgestone’s Nasu factory resumed production on March 25.

Bridgestone’s Tochigi passenger tire plant restarted production March 16.

8


Quik-Link: 800-687-1557 ext. 14105



MTD April 2011

News/views

Mayday! Mayday! Tire prices will increase on May 1Goodyear Tire & Rubber Co. is planning to raise consumer tire prices for the second time in two months. Eff ective May 1, 2011, Goodyear will increase prices on all its replacement passenger and light truck tires in North America up to 8%.

A Goodyear spokesman said the increases were necessary because of increasing raw material costs.

Michelin North America Inc. will be increasing prices up to 8.5% on Michelin, BFGoodrich, Uniroyal and private and as-sociate passenger and light truck replacement tires sold in the United States. Th e prices also will go into eff ect May 1.

On the same date, Michelin will increase prices on Michelin brand earthmover replacement tires sold in the United States and Mexico by up to 8%.

Yokohama Tire Corp. will implement price increases of up to 10% on all of its off -the-road tires in the U.S., eff ective May 1.

Yokohama also implemented a price increase on its light and medium commercial truck tires in the U.S. on April 1. Prices were raised an average of 8%, with in-line adjustments.

Auto Service Professional debutsTh e premier issue of MTD’s sister publication, Auto Service Professional (ASP) has launched and has been included with this issue of MTD. The bi-monthly maga-zine is designed for the working technician.

As ASP Editor Mike Mavrigian says, the maga-zine’s goal is to provide techs with the following:

• “Real-world in-formation” that will aid them in their daily rou-tines, and• Editorial con-tent that’s enjoy-able to read.

“Trust me,” he says, “our writers all have plenty of ASE certifi ca-tions, so you know they’re giving you the straight stuff .”

In addition to feature stories on timely and informative topics, the publication also has departments, including technical service bulletins, that cover all aspects of auto service.

The next issue of Auto Service Professional (May/June) will ship soon, so look for it. Also, visit the ASP Web site at www.AutoServiceProfessional.com.

Quik-Link: 800-687-1557 ext. 1410610



Quik-Link: 800-687-1557 ext. 14107



MTD April 2011

News/views

ContiLifeCycle inhabits the AmericasContinental Tire the Americas LLC is expanding its ContiTread network with the new ContiLifeCycle business unit. Continental has selected John Barnes to head the new unit.

Barnes has been overseeing the sourcing, construction and management of Conti-nental’s new ContiTread retread plants in Mexico. Six are up and running; plans call for another six to open by the end of the year.

In the U.S., Continental will continue the promotion and sales of ContiTread products through its cooperation with Marangoni Tread North America Inc. Th ese retreaded tire products, manufactured with RingTread technologies, are available from select tire dealers throughout the country.

Continental is looking to engage partners as part of a ContiLifeCycle distribution network that will span coast to coast across North America. Th ey will sell the treads produced at its Morelia, Mexico, retread facility.

Continental says it will be the fi rst to off er “a completely clean distribution footprint” in which dealers will not be competing geographically for ContiLifeCycle business.

Continental recently opened a retread plant, under the direction of Continental Tire Andina, in Guayaquil, Ecuador, the country’s main port. Continental also has a plant in Ecuador’s capital, Quito.

Three tire industry veterans die Th ree key fi gures in the tire industry passed away in the last few months. Th ey are Tony Giamanco, who worked at Modern Tire Dealer for 22 years; Rosemary Tucker, who graced the cover of MTD in 1972; and former Fleet Tire owner and Firestone executive Jerry Mason.

Anthony J. “Tony” Giamanco (pictured), former director of sales and marketing for MTD, died on April 4. He was 80.

Giamanco joined MTD, at the time owned by Bill Com-munications Inc., in 1979 as eastern sales manager. He loved working in the tire industry, and even aft er retiring in 2001 continued to receive the magazine. He is survived by his wife of 55 years, Anne, and three children.

Rosemary Tucker, who co-founded Tucker Tire Co. in the Los Angeles area, died March 20. She was 87.

In 1956, Tucker and her husband, Don, started Tucker Tire Co. in Covina, Calif. In 1965, she became the sole owner of Tucker Tire.

She was awarded many special honors while she ran Tucker Tire with her three sons. In 1972, she was featured on the cover of MTD for an article about women in the industry. She was chosen Small Business Person of the year in California in 1978.

Jerome A. “Jerry” Mason died on April 7. He was 84.He held numerous executive sales positions at the former Firestone Tire & Rubber

Co. before leaving to open his own commercial tire business, Fleet Tire, in Buff alo, N.Y. He also owned a wholesale tire company, Interstate Tire Co.

Mason is survived by his wife of 59 years, Isabelle, and four children.

Toyo buys into China plantToyo Tire & Rubber Co. Ltd. is acquiring a 75% equity interest in China-based tire manufacturer Shandong Silverstone Luhe Rubber & Tyre Co. Ltd. (SSLRT). The plant will supply Toyo with truck and bus tires.

Michelin tops satisfaction listMichelin tires ranked highest in satisfaction in the most recent J.D. Power and Associates Original Equipment Tire Customer Satisfac-tion Study. The report is based on responses from 26,000 new-vehicle owners who purchased a 2009 or 2010 model year vehicle. The 2011 honors brings Michelin North America Inc.’s total of J.D. Power and Associates awards to 66.

SEMA registration is openAttendee and media registration for the 2011 Specialty Equipment Market Association (SEMA) Show, Nov. 1-4 in Las Vegas, is now open. Buyers registering at www.SE-MAshow.com/register will be sent their badges in the mail in advance of the event, allowing them to hit the show floor immediately when the SEMA Show opens on Nov. 1.

Driving costs increase 3.4%The American Automobile Associa-tion (AAA) has released its annual “Your Driving Costs” study, which reveals a 3.4% rise in the yearly costs to operate a sedan in the U.S. The cost of tires had the largest percentage increase, rising 15.7% to 96 cents per mile on average for sedan owners. Overall, aver-age costs rose to 58.5 cents per mile, or $8,776 per year, based on 15,000 miles of annual driving.

TIA urges Obama to sign billFollowing the U.S. Senate’s vote passing H.R. 4, the Tire Indus-try Association (TIA) is urging President Barack Obama to sign it into law. H.R. 4 repeals the Form 1099 reporting provision that TIA says is burdensome and costly. It was passed as part of the Patient Protection and Affordable Care Act. The bill now rests with Presi-dent Obama, who has previously expressed support for the 1099 reporting provision repeal.

bites

12


Quik-Link: 800-687-1557 ext. 14108



News/views

Continental voluntarily recalls 390,657 LT tiresContinental Tire the Americas LLC is recalling certain tires produced from May 6, 2007, through Sept. 20, 2008, in the company’s San Luis Potosi plant in Mexico. Th e potential number of units aff ected is 390,657.

Th e tires being voluntarily recalled are:

1. ContiTrac TR tires, size LT275/70R18 125/122S, outline white lett ers and black sidewall; and2. ContiTrac tires, size LT275/70R18 125/122S, black sidewall.

Most of the aff ected tires were installed as original equipment on certain 2008 and 2009 model year Ford F-250 and F-350 trucks. Approximately 60,000 of the 390,657 tires were sold in the replacement market.

“Some of these tires may experience uneven wear, vibration, or, particularly under conditions of overloading or under infl ation in high ambient temperature usage, separa-tion between the belt edges,” said the National Highway Traffi c Safety Administration (NHTSA), through its Offi ce of Defects Investigation, in a recall notice (NHTSA Campaign ID number 11T002).

According to Continental, the tires met all federal safety standards. However, they did not meet Continental’s performance expectations in the fi eld.

Continental will notify owners and replace the aff ected tires free of charge.Th e safety recall began last month. Owners may contact the Continental customer

service department toll-free at (888) 799-2168, or visit the company’s Web site at www.continentaltire.com.

Bridgestone receives General Motors supplier awardBridgestone Corp. and its global family of companies, including Bridgestone Americas Inc. (BSAM), recently received the General Motors (GM) Supplier of the Year Award for overall performance in providing General Motors Corp. with parts and services.

Takashi Urano, vice president and senior offi cer of Bridgestone Corp., accepted the award on behalf of the company. Th is is the 13th time Bridgestone Corp. has been given the award.

Th e Bridgestone Group supplies tires to GM plants worldwide. In North America, Bridgestone Americas supplies Bridgestone and Firestone-brand tires for application on

all four of GM’s vehicle badges — Chevrolet, Buick, GMC and Cadillac. Bridgestone Group companies also supply tires to GM facilities and subsidiaries in Brazil, Venezuela, Europe, Australia, India, Th ailand, South Africa, China and South Korea.

From an empty building to the 32nd Tire ChoiceTh e transformation is complete. Hennelly Tire & Auto Inc. has taken an empty store in Largo, Fla., and turned it into its 32nd retail store. Hennelly Tire does business solely in Florida as Th e Tire Choice & Total Car Care.

Hennelly Tire has jumped to 33rd place on the MTD 100 list in just under seven years. Next up: building a store from the ground up in Car-rollwood, a suburb of Tampa, Fla. Th e eight-bay store is scheduled to open this summer. ■

TRIB updates retread infoThe Tire Retread & Repair Informa-tion Bureau (TRIB) has released the latest version of “Industry Recommended Practices for Tire Retreading & Tire Repairing.” All segments of the tire retreading and tire repairing industry took part in the update. CDs and printed copies of the document can be purchased through TRIB’s new online store at www.trib.site-ym.com.

East Bay Tire turns 65East Bay Tire Co., founded by Joe Fuetsch in Oakland, Calif., in 1946, is celebrating its 65th anniversary this year. Located in Fairfield, Calif., the company has wholesale and commercial locations throughout California and Hawaii. East Bay Tire is now owned by George and Joe M. Pehanick. Earlier this year, George’s son, Joe J. Pehanick, became the fourth generation of Pehanicks to work at the company.

Discount Tire expands in Colo.Discount Tire of Scottsdale, Ariz., has opened its 45th Colorado loca-tion. The new store is located in Monument, Colo.

Hankook builds R&D centerHankook Tire Co. Ltd. is establish-ing a new research and develop-ment center in the Korean city of Daejeon. The company says it will be the largest tire R&D facility in the country. When the new center opens in 2013, it will unite the dif-ferent research and development departments under one roof.

bites

Quik-Link: 800-687-1557 ext. 14109

Takashi Urano (center) receives the GM Supplier of the Year award from Ken Kelzer, executive direc-tor, GM Chassis Engineering, and Kathy Worthen, executive director, GM Chassis Purchasing.

The front counter of the latest Tire Choice looks like this.

14



MTD_insert.indd 1MTD_insert.indd 1 4/15/11 11:44:20 AM4/15/11 11:44:20 AM

MTD April 2011

A s I write this comment on March 22, the stock market — oft en a leading

indicator — is saying good things about the tire industry. Year-to-date as of today, the S&P 500 Index is up 4% but the tire stocks are doing even bett er. Goodyear is leading the pack with its YTD share price up 27%. Bridgestone and Michelin fol-low being up about 10%, Toyo and Cooper are up 5%, Kumho is up 3%, while Sumitomo is down 1%. (Prior to the Japanese earthquake, all Japanese tire company stock prices were much higher). Th at comment notwithstanding, the expectation is that 2011 will see good volume growth with February year-to-date replacement passenger and truck shipments up 5% and 27%, respectively. Even though raw materials are surging higher, tire prices (along with volume gains and cost containment actions) will compensate. Your business, like the stock market, should be participating in the more favorable tire prospects.

Monthly surveyA number of independent tire deal-

ers were surveyed concerning current business trends. Except for tire prices and costs, the results of the February 2011 survey are compared with those of February 2010.

Passenger tire dealers’ six-month outlook is mixedAccording to our dealer survey, dealers who sell passenger

or truck tires sense that in the next six months business will either remain the same or improve. Roughly 57% of passenger tire dealers suspect business will remain the same, while the remaining 43% expect improvement. Likewise, 80% of all the truck tire dealers sense that in the next six months business will improve. Th e other 20% expect business will remain the same. None of the passenger or truck tire dealers expect business to worsen. Th ese outlook comments tend to be seasonally directed rather than year-to-year comparisons.

Tire sales were strong in February

According to dealer reports, on average, retail sales of new replacement passenger tires were strong with many reporting as much as a 6% increase in February vs. February 2010. Some dealers we surveyed noted that business was bett er, but rising fuel prices could deter people from driving, impacting sales.

Truck and retreaded tire sales were strong, increasing 6% and 8%, respectively, in February year-over-year.

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

2011, average costs for size 215/60R16 major brand tires were up 2% while selling prices were up roughly 3%. Th e average costs for a 215/60R16 private brand tire were up 3% while selling prices were up roughly 3% also for the month.

Tire pricing remained fi rmIn February 2011, 71% of the passenger tire dealers de-

scribed pricing as fi rm, and the other 29% perceived pricing as normal. Likewise, 75% of truck tire dealers suggested pricing was very fi rm, while the balance of the truck tire dealers believed pricing was normal. None of the truck tire dealers felt pricing was aggressive.

Truck tire inventories remained too low Th e survey suggests that the majority of passenger tire

dealers view future demand as consistent, as 72% of tire inventories seemed to be in line with business levels. Fourteen percent said inventories were too low, and 14% said they were too high. Conversely, all truck tire dealers surveyed felt inventories were too low.

Service revenues are up, dealers reported Dealers who provide automotive service reported that 44%

of revenues, on average, were generated by service during February. Dealers indicated that service business was up over 11% in February vs. February 2010. As in 2010, service business in 2011 should continue to be strong. ■

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

Stock prices suggest better times for the tire industry

By Saul Ludwig

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

Passenger tireWill improve 33% 17% 17% 70% 43% 70%Will worsen 0% 50% 33% 0% 0% 0%Will stay level 67% 33% 50% 30% 57% 30%

Truck tireWill improve 0% 0% 75% 83% 80% 86%Will worsen 0% 33% 25% 0% 0% 0%Will stay level 100% 67% 0% 17% 20% 14%R-Revised P-Preliminary

16


Quik-Link: 800-687-1557 ext. 14110



MTD April 2011

By Bob Bissler

A lmost one out of every fi ve independent tire dealers in the United States off ers nitrogen tire infl ation. Some charge for the service. Others off er it for

free and promote it as a value-added service to bring more customers into their dealerships.

Nitrogen infl ation keeps tires properly infl ated longer than air does because of its molecular structure. A properly infl ated tire runs cooler, wears more evenly and rolls more freely than an underinfl ated tire.

Th e benefi ts sell themselves to the vehicle owner. To keep your profi ts infl ated — whether you already own equipment or are interested in off ering nitrogen infl ation — here’s a rundown on some of the newest equipment available.

Branick Industries Inc.Branick Industries has been manufacturing tire and repair

equipment since 1917. Th e company says its nitrogen units last the test of time and are built for speed and longevity.

Th e company currently has two new units available to be put to the test of time: Model 485 Single Membrane and the Model 685 Double Membrane.

“There has been a lot of debate regarding the differ-ence between pressure swing absorption (PSA) nitrogen systems and nitrogen systems that use membranes,” says Brian Brasch, president of Branick Industries. “At Branick, we carry both and have found that PSA units tend to be more appropriate in lower-volume shops where the unit isn’t used very oft en.”

Brasch says the portable Model 485 is for passenger and light truck tire facilities in which it’s easier to bring nitrogen

to the vehicle instead of the vehicle to the nitrogen. Th e unit provides 4.0 cfm of nitrogen output and features the automatic Purge’n Flate system that allows six tires to be infl ated at once. Th e 485 has a nitrogen purity level of 95% to 99%, weighs 265 pounds and includes four hoses.

Th e Model 685 Double Membrane is also portable. It was designed for large passenger and light truck tire facilities that need a litt le more output. It also gives them the capability to bring nitrogen to the vehicle instead of the vehicle to the nitrogen. With 8.0 cfm of nitrogen output, it also features the Purge’n Flate system.

Also available from Branick Industries is the Model 675. Branick says the 675 is for large passenger and light truck facilities that need a litt le more output while still having the capability to bring nitrogen to the vehicle instead of the vehicle to the nitrogen. With 8.0 cfm of nitrogen output, the unit also has the automatic Purge’n Flate system.

Gardner Denver Inc.Th e Champion Nitrogen Advantage tire infl ation system

from Gardner Denver comes with four 25-foot infl ation hoses. It has an operating temperature range of 40 degrees to minus 150 degrees F. Th e company says the unit is installed easily and connects to the existing compressed air supply to generate nitrogen in minutes. Th e unit features membrane technology and requires no maintenance.

Th e Champion Nitrogen Advantage comes with a hand-held nitrogen analyzer for easy testing, and its compact design requires minimum space. Its coalescing and particulate fi lter eliminates moisture and contaminants prior to entering the membrane, so a carbon prefi lter is not required, the company says. Th e unit has fi lter replacement indicators that will let the operator know when fi lters need replaced. It also has an automatic shutoff that halts air consumption while the unit is not in operation.

Th e company also off ers an Auto Fill Cart that can be connected to the four discharge hoses to the vehicle’s tires. Th e operator sets the controller to the desired pressure and starts the system, which automatically purges all four tires and refi lls them with nitrogen to the set pressure. Th en it purges the tires again and refi lls the tires for a second time for a nitro-gen purity level of between 95% and 98%.

Nitrogen

Next-gen nitrogennitrogenDealers have been fi lling tires with nitrogen for decades.

New equipment will keep this service on the cutting edge

The Branick Model 675 Double Membrane Nitrogen Infl ation System has a larger capacity and can take its 8.0 cfm nitrogen output right to the vehicle.

Champion’s Nitrogen Advantage features a compact size.

18


Quik-Link: 800-687-1557 ext. 14111



MTD April 2011

Nitrogen

NitroFill Inc.NitroFill’s newest unit is the E-170 Nitrogen Generation and

Conversion Station. Th e E-170 converts up to six tires at once, comes fully assembled and includes a programmable micro processor-controlled conversion system. Operating at an output of 13.5 cfm, the unit has comprehensive error reporting and self-diagnostic features. It also has a large, back-lit LCD display with audio and visual signals.

For purity, the E-170 has twin, exterior mounted, high performance inlet air fi lters. It provides instant, uninterrupted fl ow with “guaranteed” purity up to 99.9%. It comes with four tire service hoses.

Its compressed air input range is 100 to 200 psi and nitrogen output is 13.5 cfm rated at 160 psi, 80 degrees F.

NitroFill’s new E-1135 Nitrogen Generator/Infl ator is NitroFill’s answer for shops that need to service nitrogen-fi lled tires but don’t need a generator. While this high performance, 3 cfm generator is capable of performing nitrogen conversions in light use applications, NitroFill says it is best used as a nitrogen source for calibrating nitrogen fi lled tires.

Th e E-1135 is also suitable for facilities that require multiple top-off stations or units that can calibrate tires without tying up their main generators. Th e unit converts shop air into nitrogen that is up to 99.9% pure, the company says.

Parker Hannifi n Corp.Parker Hannifi n’s newest nitrogen product is the TireSaver

TS018-Wand, a manual nitrogen tire infl ator. Th e TireSaver TS018-Wand is a lightweight, portable nitrogen tire infl ator that can be used to infl ate the tires on a wide variety of vehicles, including cars and light trucks, motorcycles and trailers.

When connected to an existing compressed air line, it will continuously produce an on-demand nitrogen supply. Featuring the company’s

exclusive exchangeable membrane cartridge technol-ogy, the wand is designed to service 10,000 tires or 1,000 vehicles with nitrogen. It is also used as a top-off tool for tires already fi lled with nitrogen to enhance a

dealer’s nitrogen infl ation program.Parker Hannifi n says the TireSaver TS-018-Wand will yield multiple benefi ts to dealers,

including a minimal investment cost, good profi t margin and high sales potential. Th e

company adds that the wand will improve the availability of nitrogen for tire fi lling, allowing more consumers to realize the benefi ts. ■

NitroFill’s E-170 unit features a large, back-lit LCD display.

The TireSaver TS018-Wand pro-duces a continuous nitrogen supply.

Quik-Link: 800-687-1557 ext. 1411220



21www.moderntiredealer.com

By Bob Ulrich

Truck and OTR tire casings are in short supply, particularly out of Japan. Th at was the case even before an earthquake and tsunami devastated the

country in March. Now, it’s just worse.“Truck casings will continue to be in short supply,” says

Mike Berra, president of Community Tire Co. in St. Louis, Mo. In particular, size 11R22.5 casings are “next to impos-sible to get in any quantity.”

One retreader in the Midwest estimates 11R22.5 casing prices rose more than 18% the fi rst three months of this year. Size 295/75R22.5 casing prices were up more than 21% over that same span.

Both new OTR tires and used OTR casings also are in demand, and not just the large or giant sizes, says Berra. “I’m talking 29.5’s, sizes that are mainstream.”

And it’s a global problem. “Domestically, what we make is what we get.”

Despite the lack of casings, Community Tire is adding small OTR tire retreading capacity and new tread patt erns for existing sizes. It ranks 30th on the “MTD Top 100 Retreaders in the U.S.” list (information on the list is based on production in 2010).

Community Tire is not the only Top 100 retreader to invest in plant production in 2011.

Wingfoot Commercial Tire Systems LLC, a subsidiary of Goodyear Tire & Rubber Co., is number one on our list. Its 37 plants retread 6,180 truck tires a day, or 167 a day per plant.

Wingfoot plans to increase each plant’s units-per-day effi ciency while maintaining a low manufacturing cost.

“Th is includes investing in the plants to add productive equipment, improving plant through-put by streamlining the steps in the production process, and expanding select plants to bett er serve our customers,” says Mark Tott en, Wingfoot’s vice president of marketing.

Snider Tire Inc. (Greensboro, N.C., 5th), will open a plant in Greensboro on May 1. It will be Snider’s sixth Michelin Retread Technologies plant.

McCarthy Tire Service Co. Inc. (Wilkes-Barre, Pa., 9th) is adding equipment at all six of its retread plants. Th at includes builders, buff ers and chambers, and “hand-helds for fi eld operations,” says Vice President Neil Horn. In addition, the Wilkes-Barre plant is updating its computer-related systems.

B.R. Retreading (Glasgow, Ky., 12th) is adding radial OTR tire molds. It is the third largest OTR tire retreader in the U.S.

Service Tire Truck Centers (Bethlehem, Pa., 15th) bought Avenel, N.J.-based Perth Amboy Tire in February. Th e acquisition increases the company’s plant total from three to four. “We have added extra equipment in our York, Pa., location to move production up to 500 per day,” adds CEO and President Ron Bennett .

Belle Tire Distributors (Allen Park, Mich., 19th) is upgrading equipment in its Bandag plants. Tom Bowman, vice president of the commercial division, says the com-pany is well-situated to increase production, take on new customers and provide “the best level of service in the industry, without com-promising customer service.”

“We will also con-tinue to provide re-tread plant tours for new prospects, new

Commercial Tire Dealer™

A case for casingsIf they can get them, our Top 100 retreaders will retread and sell them

“Demand for retreading remains very strong,” says Richard Brahler II, president of Brahler’s Truckers Supply Inc., the 48th largest retreader in the U.S. Equipment upgrades at Brahler’s truck tire retread plant in Jack-sonville, Ill., will be completed by June. (Pictured at the plant’s fi nal pressure inspection station is Clint Monroe.)

ALSO IN CTDTop 100 retreaders in the U.S. . . . 24

A Tarulli tour de force: California retreader welcomes plant visitors . . . 30

Giant OTR tires — a true portrait of chaos: Processes, number of suppli-ers affect worldwide supply . . . 31

OTR tires in 2011: Rasey addresses rubber costs and mining trends . . . 33

Commercially Viable . . . 36


MTD April 2011

Top 100 retreaders

customers, and our current customers, not only giving them the understanding of the overall process, but also giving them the knowledge and the understanding of the technology of retreading.”

Parkhouse Tire Inc. (Bell Gardens, Calif., 21st) has added its fi ft h shearography machine and its third model 4150 quick cure chamber.

Th e new equipment is part of the company’s goal to “con-tinue to grow business in our existing (two) facilities and constantly seek to improve quality and effi ciency, utilizing the

latest in technology and machinery,” says Jason Smith, director of manufacturing.

H&H Industries Inc. (Oak Hill, Ohio, 23rd), one of the largest OTR tire retreaders in the country, wants to expand its customer base. President Noah Hickman says the company wants to expand further south and west, “and increase our export business.”

Craft Tire Inc. (Uniontown, Pa., 33rd) CEO Mark Goodes says the company is thinking about buying a new large OTR tire builder for its Shrader’s plant in Greenville, Ohio. (Craft

purchased the assets of Shrader’s Inc. in 2003.) “It appears that we will have to increase plant employees soon. We have been working overtime to handle the increased production.”

Sullivan Tire Co. Inc. purchased Con-necticut’s largest commercial truck tire retreader, Bergson Tire Co. Inc., in January. Th e acquisition gives Sullivan four plants and increases its capacity by more than 100 tires a day.

Morton Supplies Inc. (Morton, Ill., 41st) moved 20 spots on the list, thanks to an increase in its daily truck tire retread production. “Our max capacity is 393,” says owner Fred Schmidgall. “We hope to get to over 500 within two years.”

Colony Tire Corp. (Edenton, N.C., 44th) also is adding equipment, according to CEO Charlie Creighton. Colony Tire was the biggest mover on the “Top 100” list, jumping 36 spots

Sumerel Tire Service (Newport, Ky., 73rd) is adding a tire plant, its second. Th e precure plant, located in northwest Ohio near Findlay, will do business as Hancock County Tire and Retreading. It also will distribute Acutread mold cure retreads from Sumerel Tire’s plant in Newport.

Black’s Tire Service (Whiteville, N.C., 77th) added a new repair station to its retread plant in Clarkton, N.C. Jeremy Benton, vice president of commercial sales, says the upgrade will help the repair section fl ow bett er. Th e company also added a monorail.

Not all the top retreaders are adding shops or equipment. Jerry Bauer, president of Bauer Built Inc. in Durand, Wis., says his seven truck tire retread plants give him adequate capacity. Bauer Built, the 14th largest domestic retreader, retreads an average of 940 truck tires a day.

“In spite of the economic forecast, we plan to fi gure out a way to sell more retreads than we did in 2010.” ■

Quik-Link: 800-687-1557 ext. 1411322



Quik-Link: 800-687-1557 ext. 14114



MTD April 2011

RA

NK

CO

MPA

NY

HE

AD

QU

AR

TE

RS

NU

MB

ER

OF

S

HO

PS

RU

BB

ER

US

ED

(l

bs.

in

millio

ns)

LT T

IRE

S

TR

UC

K T

IRE

S

OT

R T

IRE

S

PR

OC

ES

SE

S

TO

TAL

PO

INT

S

1 Wingfoot Commercial Tire Systems LLC/Goodyear

Fort Smith, Ark.

37 39.4 380 6,180 0 Goodyear (UniCircle,precure, mold cure)

22,276

2 Southern Tire Mart Columbia, Miss.

18 21 0 3,612 0 Bandag (precure) 12,642

3 Bridgestone Bandag Tire Solutions

Muscatine, Iowa

36 21.7 20 3,482 6 Bandag (precure) 12,497

4 Purcell Tire & Rubber Co. Potosi, Mo. 5 20 150 1,300 160 Goodyear (UniCircle, precure, mold cure, Flex-cure), segmented mold cure, precision cut treads

12,165

5 Snider Tire Inc. Greensboro, N.C.

5 15 200 2,050 0 Michelin (Pre-Mold,Custom Mold)

7,515

6 Best-One Tire Group Monroe, Ind. 16 12.6 0 2,020 0 Bandag (precure) 7,070

7 TCI Tire Centers Duncan, S.C. 10 13 0 1,900 0 Michelin (Pre-Mold,Custom Mold)

6,650

8 Northwest Retreaders Inc./Hudson-Odom

Portland, Ore.

1 N/A 25 210 105 Precure, mold, sculpture 5,608

9 McCarthy Tire Service Co. Inc.

Wilkes-Barre, Pa.

6 6 132 940 40 Bandag (precure and Continuum)

5,354

10 Pomp’s Tire Service Green Bay, Wis.

11 N/A 103 1,410 0 Bandag (precure) 5,110

11 Les Schwab Tire Centers Bend, Ore. 3 10.5 0 1,150 10 Oliver (precure),Marangoni (RingTread precure), Galgo

4,485

12 B.R. Retreading Glasgow, Ky. 1 4.6 0 10 89 Segmented radial molds, Marangoni (cut tread)

4,129

13 Tredroc Tire Services Antioch, Ill. 5 5.5 50 1,040 0 Bandag (precure) 3,725

14 Bauer Built Inc.,dba Bauer Built Tire

Durand, Wis. 7 6.5 10 940 0 Michelin (Pre-Mold,Custom Mold)

3,307

15 Service Tire Truck Centers Bethlehem, Pa.

3 8.1 40 900 0 Michelin (Pre-Mold,Custom Mold)

3,218

16 C & M Tire(Cross Midwest Tire Inc.)

Kansas City, Mo.

4 5 50 800 6 Bandag (precure, Continuum)

3,161

17 Bob Sumerel Tire Co. Erlanger, Ky. 6 5 0 800 0 Bandag (precure) 2,800

18 Jack’s Tire and OilManagement Co. Inc.

Logan, Utah 5 4.6 8 700 0 Michelin (Pre-Mold) 2,464

19 Belle Tire Distributors Allen Park, Mich.

3 3.2 20 660 0 Bandag (precure) 2,344

20 Boulevard Tire Deland, Fla. 4 4 0 668 0 Bandag (precure) 2,338

21 Parkhouse Tire Inc. Bell Gar-dens, Calif.

2 3.8 10 650 0 Bandag (precure) 2,292

22 New Pride Corp. Oakland, Calif.

2 3.5 0 640 0 Oliver and Daeho(precure, mold cure)

2,240

23 H & H Industries Inc. Oak Hill, Ohio

1 5.3 0 0 44 Mold cure, sculpture, precure

2,024

24 Valley Tire Co. Inc. Charleroi, Pa.

1 3.4 40 550 0 Michelin (Pre-Mold) 1,993

MTD TOP 100 RETREADERS IN THE U.S.

24


Quik-Link: 800-687-1557 ext. 14115



MTD April 2011

RA

NK

CO

MPA

NY

HE

AD

QU

AR

TE

RS

NU

MB

ER

OF

S

HO

PS

RU

BB

ER

US

ED

(l

bs.

in

millio

ns)

LT T

IRE

S

TR

UC

K T

IRE

S

OT

R T

IRE

S

PR

OC

ES

SE

S

TO

TAL

PO

INT

S

25 Custom Bandag Inc. Linden, N.J. 3 3.3 66 500 0 Bandag (precure) 1,862

26 New Holland Tire Inc. Terre Hill, Pa. 2 2.9 5 500 2 Daeho/Elgi (precure) 1,851

27 Ziegler Tire Massillon, Ohio

2 4 5 525 0 Michelin (Pre-Mold,Custom Mold)

1,846

28 Atlanta Commercial Tire Inc. Forest Park, Ga.

3 N/A 15 510 0 Bandag (precure) 1,816

29 McGriff Treading Co. Cullman, Ala.

3 3 26 503 0 Bandag (precure) 1,805

30 Community Tire Co. St. Louis, Mo.

1 2.2 100 40 30 Mold cure, segmented mold cure

1,690

31 Parrish Tire Co. Winston-Salem, N.C.


32 White’s Tire Service Inc. Wilson, N.C. 1 2.7 35 318 8 Marangoni (RingTread precure), Oliver (Mega-mile precure), White’s Bead-to-Bead (mold cure), Bandamatic (precure)

1,541

33 Craft Tire Inc. Uniontown, Pa.

2 3 0 0 33 Marangoni (Mammoth, computer cut tread)

1,518

34 Allied Tire Co. Omaha, Neb. 1 N/A 0 405 0 Michelin (Pre-Mold,Custom Mold)

1,418

35 RDH Tire & Retread Co. Cleveland, N.C.

1 5 0 0 30 Compuerized strip and tread grooving, Bandag (Continuum)

1,380

36 Raben Tire Co. Inc. Evansville, Ind.

3 2.1 0 384 0 Michelin (Pre-Mold), Goodyear (UniCircle)

1,344

37 Sullivan Tire Co. Inc. Norwell, Mass.

3 2.9 30 350 0 Bandag (precure) 1,276

37 T & W Tire and Retread Inc. Oklahoma City, Okla.

2 N/A 30 350 0 Goodyear (precure) 1,276

39 Callaghan Tire Bradenton, Fla.


40 Redburn Tire Co. Phoenix, Ariz.

5 2.3 20 325 0 Bandag (precure) 1,172

41 Morton Supplies Inc. Morton, Ill. 1 1.6 1 246 6 Daeho (precure), Ban-damatic (precure), Oliver (SureCure precure)

1,139

42 Royal Tire Inc. St. Cloud, Minn.

2 2 2 280 3 Bandag (precure, Continuum)

1,121

43 Petes Tire Barns Inc. Orange, Mass.


44 Strouhal Tire Recapping Plant Inc.

Hungerford, Texas

1 N/A 0 300 0 Michelin (Pre-Mold) 1,050

44 Colony Tire Corp. Edenton, N.C.

1 N/A 0 300 0 Michelin (Pre-Mold) 1,050

46 Hill Tire Co. Forest Park, Ga.

2 N/A 0 290 0 Marangoni (RingTread precure), mold cure

1,015

47 California Retreaders Inc. Fresno, Calif. 1 2 0 280 0 Michelin (Pre-Mold) 980

48 Brahler’s TruckersSupply Inc.

Jacksonville, Ill.

1 2.2 0 275 0 Marangoni (Unitread precure), Brahler’s private brand (precure)

963

49 Eastern Iowa Tire Inc. Davenport, Iowa

2 1.7 0 270 0 Bandag (precure) 945

26


Quik-Link: 800-687-1557 ext. 14116



MTD April 2011

RA

NK

CO

MPA

NY

HE

AD

QU

AR

TE

RS

NU

MB

ER

OF

S

HO

PS

RU

BB

ER

US

ED

(l

bs.

in

millio

ns)

LT T

IRE

S

TR

UC

K T

IRE

S

OT

R T

IRE

S

PR

OC

ES

SE

S

TO

TAL

PO

INT

S

50 Darrington Retreading Facility

Rosharon, Texas

1 N/A 0 2 20 Precure 927

51 Highlands Tire & Retreading Carlisle, Pa. 1 N/A 5 250 0 Michelin (Pre-Mold) 884

52 Bergey’s Retread Technologies

Franconia, Pa.

1 1.5 1 250 0 Marangoni (RingTread precure), other

877

53 Mountain Tire Corp. Gorham, N.H.

2 N/A 10 240 0 Oliver (precure) 857

54 Graham Retread Co. Spencer, Iowa

2 N/A 2 240 0 Goodyear (precure) 843

55 A to Z Tire & Battery Inc. Amarillo, Texas

2 N/A 0 240 0 Marangoni (RingTread precure)

840

56 Looney’s Tire Service Little Rock, Ark.

1 1.4 0 239 0 Marangoni (precure), Pre-Q (precure), Daeho (precure)

837

57 Southside Tire Co. Inc. Schofi eld, Wis.

2 N/A 8 220 1 Bandag (precure) 830

58 Superior Tire Service Inc. Salem, Ore. 2 3 10 225 0 Michelin (Pre-Mold) 805

59 Day & Night Tire Service Lakeland, Fla.

1 1.9 160 150 0 Acutread (mold cure),Oliver (precure)

797

60 Moore’s Retread & Tire Co. Springdale, Ark.

2 N/A 10 220 0 Goodyear (precure), CIMA (mold cure)

787

61 Piedmont Truck Tires Inc. Greensboro, N.C.

1 1.2 8 220 0 Goodyear (precure) 784

62 Gem City Tire Dayton, Ohio 1 N/A 24 210 0 Goodyear (precure, UniCircle)

776

63 Commercial Tire Inc. Meridian, Idaho

3 1.5 9 213 0 Bandag (precure) 761

64 MTI Retreading Inc. Grand Rap-ids, Mich.

1 N/A 30 195 0 Michelin (Pre-Mold) 734

65 Tarulli Tire Inc. Santa Ana, Calif.

1 1.3 12 200 0 Bandag (precure) 720

66 Ozarko Tire Centers Inc. West Plains, Mo.


67 Ranger Tire/J.A.R. Rubber Corp.

Bayshore. N.Y.

1 1.8 2 202 0 Marangoni (precure), Vipal/Elgi (precure)

710

68 Daniels Tire Service Santa Fe Springs, Calif.

1 N/A 20 190 0 Goodyear (precure) 699

69 Moore’s Retread and Tire of the Ark-La-Tex Inc.

Shreveport, La.

1 1.3 6 184 0 Goodyear (UniCircle, precure)

654

70 Tire Grading Co. Inc. Chicago, Ill. 1 N/A 200 88 0 Marangoni (RingTread precure)

648

71 Stratham Tire Inc. Stratham, N.H.

3 0.8 10 180 0 Bandag (precure) 647

72 Overnite CTS Charlotte, N.C.

1 N/A 0 179 0 Mold cure 627

73 Sumerel Tire Service Inc. Newport, Ky. 1 1.4 6 176 0 Acutread (mold cure) 626

74 Appalachian Tire Products Inc

Charleston, W.V.

2 N/A 30 150 0 Goodyear (precure, mold cure)

576

75 Dale’s Tire & Retreading Inc. Rapid City, S.D.

1 0.8 4 120 3 Bandag (precure) 565

76 Wonderland Tire Co. Inc. Byron Cen-ter, Mich.

1 N/A 0 160 0 Acutread (mold cure) 560

28



RA

NK

CO

MPA

NY

HE

AD

QU

AR

TE

RS

NU

MB

ER

OF

S

HO

PS

RU

BB

ER

US

ED

(l

bs.

in

millio

ns)

LT T

IRE

S

TR

UC

K T

IRE

S

OT

R T

IRE

S

PR

OC

ES

SE

S

TO

TAL

PO

INT

S

77 Black’s Tire Service/Carolina Retread

Whiteville, N.C.

1 N/A 7 155 0 Goodyear (precure, UniCircle)

554

78 Wentworth Bandag Chicago, Ill. 1 N/A 0 156 0 Bandag (precure) 546

79 Maine Commercial Tire Hermon, Maine


80 Wood County Bandag LLC Bowling Green, Ohio

1 0.9 4 150 0 Bandag (precure) 532

81 Good Tire Service Kittanning, Pa.


82 Becker Tire & Treading Inc. Great Bend, Kan.

1 1 4 120 2 Bandag (precure) 519

83 Central Tire Corp. Verona, Va 1 0.8 4 137 0 Goodyear (precure), Cen-tral Tire (Horizon precure), Acutread (mold cure)

486

84 Suburban Tire Co. Dayton, Ohio 1 N/A 35 120 0 Gooydear (precure) 480

85 K-S Bandag, a divisionof Kauffman Tire

Wooster, Ohio


86 McGee Tire Stores Inc. Lakeland, Fla.

1 0.6 12 125 0 Goodyear (UniCircle precure)

458

87 Holyoke Tire & Auto Service Inc.

West Spring-fi eld, Mass.

1 0.6 12 96 2 Bandag (precure) 449

88 Alma Tire Service Inc. Alma, Mich. 1 N/A 10 110 1 Bandag (precure) 448

89 A & E Tire Inc. Denver, Colo.


90 Main Tire Exchange Inc Dansville, N.Y.

1 0.9 15 120 0 Bandag (precure) 445

91 Terry-Haggerty Tire Co. Inc. Albany, N.Y. 1 0.7 10 120 0 Bandag (precure) 437

92 McCoy Truck Tire Service Center Inc.

Modesto, Calif.

2 0.7 4 121 0 Bandag (precure) 430

93 Heintschel Tire & Service Inc Texarkana, Texas

1 0.8 4 120 0 Marangoni (RingTread precure), Bandamatic (precure)

427

94 Doyle Hayes Tire Service Inc. Dalton, Ga. 1 N/A 3 120 0 Bandag (precure) 425

95 Jewell Tire Retreading Inc. South Paris, Maine

1 N/A 12 115 0 Marangoni (precure) 423

96 Salem Tire Center Salem, Ill. 1 N/A 0 120 0 Olvier (precure) 420

97 Phelps Tire Co. Seattle, Wash.


98 Action Tire Co. Forest Park, Ga.

1 N/A 1 114 0 Oliver (precure) 401

99 Mount Morris Tire Service MountMorris, Pa.

1 1.4 150 40 0 Mold cure 395

100 Comcar Industries Inc. Auburndale, Fla.

1 0.6 0 110 0 Bandag (precure) 385

Each April, Commercial Tire Dealer ranks the top 100 retreaders in the United States, based on the average amount of tread rubber used to retread different types of tires. Twelve pounds of rubber, on average, are used to produce one light truck tire retread, while 24 pounds are used to produce one medium/heavy truck tire retread. An average of 325 pounds is used to build one OTR tire retread. CTD awards one point for every seven pounds of rubber used per retread. Each light truck tire retread equals 1.7 points, each truck tire retread equals 3.5 points, and each OTR tire retread equals 46 points. Numbers are rounded to the nearest point. The “Top Retreaders” list was started in 1988, when the top 10 retreaders were: Goodyear, ABC Treadco Inc., Pro-Tread Corp., Les Schwab Tire Centers, Edwards-Warren Tire Co., Northwest Re-treaders Inc., Ray Carr Tires, Radar Tire Inc., Purcell Tire & Rubber and McGriff Treading Co. N/A = Not available.


MTD April 2011

Tarulli Tire Inc. and President Rick Tarulli played host to members of the Pacifi c Southwest Chapter of NAFA (National Association of Fleet Administrators Inc.)

in March. Th e site was Tarulli Tire’s Bandag precure retread facility in Santa Ana, Calif.

During the plant tour, NAFA members followed the retread process from casing inspection through the curing stage. Some of the steps are illustrated in the photos below. They also

learned about new tire manufacturing, sidewall nomenclature, SmartWay fuel-effi ciency standards and tire pressure monitor-ing systems.

Tarulli Tire retreads close to 200 truck tires — and a few light truck tires — a day, and uses more than one million pounds of rubber annually. Th e commercial tire dealership placed 65th on the “MTD Top 100 Retreaders in the U.S.” list this year. (Photos by Th i Dao/Bobit Business Media) ■

A Tarulli tour de forceCalifornia retreader welcomes plant visitors

Tarulli Tire retreads close to 200 truck tires a day at its Bandag pre-cure plant in Santa Ana, Calif.

Skiving removes hidden defects that the buffer fails to remove. No rubber was scorched in this photo.

Herbert Cordova carefullly applies new tread at the builder and then splices both ends together.

Jose Velascio applies cushion gum to the tire tread area using the cushion extruder machine.

Juan Magna vacuum tests the envelopes before the truck tires go into the chamber to be cured.

Wrap artist: Abel Cordova uses an envelope spreader to “envelope” a medium truck tire prior to curing. Proper fi tment is crucial.

Top 100 retreaders

30



By Kevin Rohlwing

A s we noted in the February Commercial Tire Dealer section, the off-the-road tire industry in North America is extremely dependent on the market

abroad. Because OTR tires are so highly specialized, and only a handful of manufacturers have the resources to build the largest tires on the planet, this global industry must be analyzed using the chaos theory — “When complex systems were entirely dependent on initial conditions, such as the weather, even the smallest changes could yield dramatically diff erent results in the end.”

What happens in one heavy equipment market has an af-fect on all other markets in the world. By looking at the retail statistics for Caterpillar dealers, as an example, sales for its equipment in the rest of the world were booming in 2007, but losses in North America were enough to drag down the entire global fi gures.

Likewise, the respectable off shore gains in the fi rst half of 2008 were brought down by this continent to the degree that the worldwide fi gures were close to break even. And when the North American demand started shooting up like a rocket in June of last year, it brought the rest of the world with it.

It’s a litt le scary to think that one heavy equipment market can impact the world like that, but the U.S. and Canada remain two of the largest industrial superpowers on the planet, and according to Caterpillar’s dealer statistics over the past four years, that fact is a long way from changing any time soon.

Market conditions

Another initial condition that impacts the supply of OTR tires is the nature of the markets themselves. Small OTR tires are by far the largest segment, comprising almost 70% of total production. Th ey are primarily used in the construction industry, so the lack of demand in the North American new housing market aff ects both the original equipment and replacement supply. And unlike large and giant OTR tires where radials have taken over, bias ply tires are still quite popular, especially on graders and small loaders. Th is means that production in emerging markets can satisfy more demand in those regions because the technology for building bias ply tires is more accessible and has been around for decades.

And while this market is not immune to shortages or supply issues, it can react faster because the tires require less time and materials to build and cure.

Large OTR tires used in the aggregate industry represent the next largest segment of the OTR tire industry at just over

10% of production. Th is market is basically divided into two areas (haulage and loaders) and is dominated by one size, the 27.00R49. Once again, the North American housing market plays a major role in dictating demand as does the road construction industry.

Th e on-going infrastructure projects in China represent another initial condition that impacts the global OTR tire market and contributes to the chaotic supply and demand cycle. It takes a lot of aggregate to build roads, bridges and other public works projects, so the continued modernization of countries like China, India and Brazil puts additional stress on the already strained market.

And unlike small OTR tires where bias ply construction

still plays a signifi cant role, most of these tires are radial, so the number of manufacturers with the technology to build them is smaller by comparison.

If one desires a true picture of chaos in the OTR tire industry, all one has to do is take a look at the giant tire market, which is the smallest of the three segments with less than 10% of production.

The mining industry itself is another prime example of chaos theory, so commodity prices have a direct eff ect on demand for giant haulage tires. With gold prices at an all-time high, gold producers cannot get the materials out of the ground fast enough. Th is requires mammoth haul trucks with equally mammoth tires, in particular those with 57- and 63-inch bead diameters. Th e increased demand in this segment of the mining industry has defi nitely impacted the global supply to some degree.

Coal is another commodity that depends on giant OTR tires and therefore determines the worldwide availability.

OTR tire market

Giant OTR tires: a true portrait of chaosManufacturing process, limited number of suppliers can aff ect worldwide supply

The giant off-the-road tire segment is relegated to only a handful of manufacturers with the resources to build the largest tires on the planet.


OTR tire market

And while the fl oods in Australia that have all but shut down coal production may provide some temporary relief for giant tire demand, the countries that are dependant on Australian coal (i.e. China and Japan) will have to get it from somewhere else so that will probably result in more production from other coal producing regions which puts additional strain on the system in those areas.

And it remains to be seen how the demands on OTR tires for rebuilding the earthquake and tsunami-ravaged areas in Japan will aff ect the global OTR market.

Manufacturing realityBut the true initial condition

that defines chaos in the giant OTR tire market is the manu-facturing process. Th ese tires are almost exclusively produced with radial construction and there are literally a handful of plants in the world that can produce them. In fact, giant OTR tires are one of the few remaining products that are actually made in the U.S.A. and exported to the rest of the world. And if the number of worldwide plants with the technology to build these tires is small, then the number of manufacturers is even smaller.

Th en there is the time factor to build and cure them. It takes more than a day to build one giant OTR tire and cure it in a press. Th e molds can take years to produce and there are only a few companies in the world with the technology or expertise to build them.

All of the giant OTR tire manufacturers embarked on major expansion projects a few years ago when the shortage reached critical stages, and while the cancelled orders associated with the global downturn gave them an opportunity to build inventories and production capacity, it still wasn’t enough to keep up with

the current global demand now that the economy has turned around.

Another factor that impacts the production of giant OTR tires (and all OTR tires for that matt er) is the world’s supply of natural rubber. Almost 90% of natural rubber comes from

Southeast Asia where torrential rains and the normal reduction in output associated with wintering have diminished global inventories to less than 70 days. OTR tires are incredibly dependent on the cut and chip resistance that natural rubber provides, so any drastic changes in supply will surely have an impact on production. And while no one wants to accept or understand the rash of recent price increases, the cost of natural rubber has more than tripled in the past two years which is diffi cult to absorb when you’re talking about

the thousands of pounds that are used in a giant OTR tire. If the OTR industry thinks the current fi ll rates are low, then start praying that weather conditions improve in the natural rubber producing countries or the world may experience a shortage of epic proportion that will cripple the global economy.

It won’t take much to throw the OTR tire market into total chaos. The worldwide manufacturing system is extremely sensitive and totally dependent on initial conditions like the supply of natural rubber or the sales of new heavy equipment. And since the market demand on the replacement side is equally sensitive, even the slightest shift s at the equipment, construction, aggregate or mining levels can have a dramatic impact on the global supply of OTR tires. ■

Kevin Rohlwing, senior vice president of training for the Tire Industry Association, can be reached at [email protected].

Commodity prices have a direct effect on the worldwide demand for giant haulage tires.

Quik-Link: 800-687-1557 ext. 14117




By Greg Smith

T he buzz surrounding this year’s Tire Industry Association Off -Th e-Road Tire Conference was constant and loud: “What impact will runaway

natural rubber prices have on our industry?” Th is sentiment, whether by the formal speakers or during breaks, was on everyone’s minds.

And the overriding answer to the question was, nobody really knows how long or how high the prices are going to move, or what it ultimately means for the industry. Th ere were a variety of opinions on the subject, however.

Shawn Rasey, president of the Bridgestone Americas Off Road Tires division of Bridgestone Americas Inc., is no stranger to giving the keynote speech at the conference. In 2007, he was the keynoter at the conference in San Diego, Calif. Th is year, he gave the keynote address at the 56th annual event, held in Miami, Florida in February.

His position on rising raw material costs? “Personally, I’ve never seen anything like it... the price of natural rubber has risen 92% in just one year. In fact, the price of natural rubber is up almost 250% from November 2009!”

Rasey said there are three primary drivers that have caused these unprecedented prices. “Th e fi rst driver is mother nature. During the past year, the available acreage and yield of natural rubber plantations around the world have suff ered enormous losses from both heavy fl ooding and drought. Th en there’s the second driver, which is explosive growth and demand of natural rubber by the BRIC countries — Brazil, Russia, India and China. And the third driver has been ‘market speculation.’

“As scarcity from fl ooding and drought combined with explosive demand by the BRIC countries, natural rubber commodity investment speculation suddenly became a ‘sexy investment,’ further driving prices higher to today’s unprecedented level of $5,600 per metric ton.”

Change is a constant, he said. “Just think for a moment about how much change our industry has experienced in just four short years! It seems everything is changing and shift ing faster than ever. One thing is for sure, more changes and shift s are coming, and they’ll likely keep all of us a litt le edgy and ill at ease from time to time.”

Rasey pointed out some key forces that continue to change and challenge the off -road tire industry:

• the continuation of rapid industrialization and growth of the BRIC countries;

• continued exponential growth of the Internet, “creating a fl att er and faster world than most of us might have ever imagined”;

OTR tire conference

OTR tires in 2011Rasey addresses rising rubber costs and mining trends

Disruptive innovationWhat does it take to make ‘shift’ happen?

“Disruptive innovation is the process by which a product or service takes root initially in simple applications at the bottom of a market, and then relentlessly moves ‘up market,’ eventually displacing established competitors.”

Shawn Rasey, president of the Bridgestone Americas Off Road Tires division (see main story), captured the attention of everyone at the TIA OTR Tire Conference with this phrase.

He began his keynote speech by pointing to a photo of Steve Jobs, CEO of Apple Inc. Jobs disrupted and changed the music industry with his little invention called the “iPod.” He then pur-chased another company’s software and calling it “iTunes.”

“How dare he make us all download our music from the In-ternet, choosing only what we wanted to hear, and paying an incredible 99 cents to ‘have it our way’? And as of the middle of last year, Apple continued to laugh all the way to the bank having downloaded the 10 billionth iTune.”

He listed a few more innovative disruptions that didn’t even exist 10 years ago:

• online airline check-in. • Blu-Ray.• Red Bull. • Facebook.• digital video recorder. • YouTube.• Wii. • designer tea in bottles.• text messaging. • Twitter.• Kindle/e-readers. • hybrid cars.

Rasey said we’re either going to be part of the innovative disruptions that take our industry to the next level, or subjected to it. Either way, these disruptions will continue, and ‘shift’ will happen.

“So, what innovative disruptions can those of us here create that make shift happen for us, rather than to us?” asked Rasey. “What new innovative disruptions and markets that have never existed in the off-road tire industry will we create?”

Raney said the OTR industry is prone to change. GPS mine production software, 63-inch tires and Homeland Security port management were unheard of 10 years ago.


MTD April 2011

OTR tire conference

• a global mining and petroleum boom — occurring “as the industrialized nations of the world compete for raw materials, food and the intellectual capital to drive their economies ahead.”

Mining industryRasey said that the previous diversity in the mining market

contributed to wide swings between supply and demand.“However, that is changing quickly. More recently, mining

has shift ed from a diverse base to rapid consolidation, and far more specialization, creating much bett er control and integra-tion between supply and demand.”

Rasey sees a steady and consistent growth in mining overall in the future along with far greater globalization in mining and far fewer mining customers than ever before as mining consolidations continue. He envisions 2011 being another year full of challenges — and opportunities.

“Just in mining alone, mine operators are increasingly adopt-ing larger equipment to lower operating costs and improve

productivity, creating ‘innovative disruptions’ (see sidebar) and driving all new classes of ultra-large machinery, and ‘ultra-class’ sized tires.”

As the demand for more specialized machines increases, “all of us must become more specialized than generalized if we’re going to grow along side these evolving segments,” he said.

“Th is innovative disruption in machine evolution will require us to shift quickly, from being all things to sell many to being far more ‘solutions driven performance consultants.’ We’ll need new and specialized capabilities to apply our products, technologies, people and services in more meaningful ways to every customer.”

He said competing in the OTR market will require “a mega leap” in design technology, manufacturing expertise, performance analytics and service modeling. “None of us who manufacture off -road tires; especially the largest ones, can aff ord to guess what our customers will want or will buy in the future. It’s never been more critical for all of us to get closer to the customer.” ■

During the tire manufacturers’ panel, mod-erated by Modern Tire Dealer Publisher Greg Smith, the subject of spiraling raw material costs was one of the hot topics. Roger Lucas, vice president of marketing and sales for earthmover tires at Michelin North America Inc. was pointed with his comments.

“We are seeing historic records every day on raw materials... if you look at our fi nancial reports, you can see how we’ve been impacted.”

He said Michelin worldwide spent 544 million euros on raw materials in 2010 (approximately $410 million), and that his company expects to spend 1.5 billion euros in 2011.

Lucas said he believes that there will be more production coming on line for natural rubber, and there should be an easing of costs toward the end of 2011.

James Wang, sales and marketing di-rector for Techking Tires Ltd., said, “The Chinese manufacturers are very sensi-tive to the increases. The manufacturers increase prices very often. This is new to us and puts us in a risky position.” Wang believes that long-term, there will be less natural rubber suppliers that will keep pricing high.

Nelson Richards, national OTR sales manager for Yokohama Tire Corp., said, “If you look at the increase in the U.S., it is due to the cartel — we all know what happened to oil when that cartel was formed.” Richards said to “hold on” as

he expects increases in prices, “large and often.”

Even as the pricing is a concern, the panelists addressed the issue of possible shortages. Paul Hawkins, vice president of OTR Tires, Titan Tire Corp., summed up the sentiment for the all the panelists. He said there “have been some hints of shortages for rubber and some other materials, but it is not a problem that can’t be managed.”

On the issue of using other types of raw materials, the panelists agreed that they are all working on different formulas, but nothing is immediate. “I don’t think there’s anything dramatic coming within the next fi ve years,” said Wang.

The retreaders in the room, particularly those into the larger size OTR tires, asked the panelists what their companies were doing to increase casing life. Lucas’ re-

sponse was to the point. “What is the number of retreads that you want out of casings? We talk with retreaders inside their shops and continually ask this ques-tion.” Lucas said in the over-the-road truck tire side of the business, it’s well known how many retreads per tire should be expected.

“Do we need a baseline for this indus-try? Is this the right thing to do?” Lucas said that before answering the question, the industry had to make sure that it has “the right number of retread plants. This is critical. We must know as an industry where we want to be.”

Richards took a different direction on the issue of casing durability. “I think I speak for all the guys up here — when we build casings, we build for integrity. If we have a problem, such as it won’t repair or retread, we fi x it.”

Moderated by Greg Smith, publisher of Modern Tire Dealer, the panelists included Shawn Rasey, Bridgestone; Roger Lucas, Michelin; James Wang, Techking; Paul Hawkins, Titan; and Nelson Richards, Yokohama.

Tire manufacturers’ panel discusses raw material costs‘You can see how we’ve been impacted,’ says Michelin’s Roger Lucas

34



During his presentation on the United States OTR tire production numbers, Bruce Besancon, marketing director for Michelin North America Inc., comment-ed on the “skyrocketing natural rubber prices.”

“It is a fact in the industry. They are controlled by a cartel and we pay the same price as anyone else. We must live with it and be more effi cient.”

Looking at the bigger picture for OTR tire manufacturers and dealers, Besan-con said the factors that dictate tire demand are improving, but “we’re not there yet.”

He said that the nation’s GDP hit the bottom of the barrel in 2009, and then rose 2.9% in 2010, although it tapered off during the year.

Housing starts are a key contributor for the health of the OTR tire market, he said. New houses mean dirt gets moved, streets are built, and raw materials are needed for the homes. Unfortunately, “housing is a disaster.”

In 2009, housing starts were at 550,000, and they only moved up to 590,000 in 2010. As a means of comparison, housing starts were 2.4 million in 1970, moving up and down somewhat until 2005, when they were at almost 2.3 million before dropping dramatically during the recession.

Looking specifi cally at domestic OTR tire market segments, Besancon said he likes to use rolling 12-month views instead of yearly statistics. Radialization in the replacement market is hovering around 50%, while it’s closer to 75% at the OE level.

There was a major decline in the total replacement OTR tire market from January 2008 until January 2010. It bounced back by 21% in 2010, but for the two-year period, shipments are still down 20.5%.

One sub-category, construction and quarry tires (typically size 14.00-24 to 27.00-49) increased in volume during 2010 by 16%, but was still 29.4% below ship-ments in the 2008-2009 time period.

In the larger tire segment, surface min-

ing tires (all tires above 49-inch rim seat), were up 23.5% in 2010.

In 2008, the shipments at OE for all OTR tires dropped by 20.3% compared to the previous year. In 2009, they experienced a greater drop — 62.6%. This was followed by an upswing of 99.2% in 2010.

Looking at 2011 and beyond, Besancon said fears of a “double-dip recession” have been easing, but are not completely gone. The U.S. is slowly growing its GDP. Housing is also increasing, but is well below historic levels and won’t strongly return until 2012. Nonresidential construc-tion will lag during the recovery.

Besancon cautioned everyone to not think of demand solely as a domestic issue, since other parts of the world are “emerging” and the minerals and com-modities that need mined are a positive for OTR tire shipments.

In all, the OTR tire market appears to be slowly getting better, but there are a lot of obstacles before the market fully moves ahead.

Off-the-road tire shipments:They have yet to return to 2007 levels, but they appear to be improving

Quik-Link: 800-687-1557 ext. 14118



MTD_36.indd 1MTD_36.indd 1 4/28/11 12:20:17 PM4/28/11 12:20:17 PM






By Roger McManus

I always loved the Yellow Pages. Even as a kid in Ohio, I would flip through the back section of the Cincinnati Bell Yellow Pages book and just wonder about how many

diff erent things people do with their lives.Perhaps that yellow-page-fl ipping process was the seed of

entrepreneurship for me — just realizing all of the choices I could make besides just gett ing a job. I still marvel at the amazing choices people have. I can’t honestly say that I envisioned being so involved in the tire business back then, but opportunities appear in our lives every day!

Th e Yellow Pages provides information to consumers: what you sell (tires, service, towing), the brands you represent (co-op money!), your hours, your specialties. Th e more you say about your business, however, the more it costs. When I be-came the owner of my fi rst business, a one-hour photo lab, I was shocked at the prices for those litt le, and sometimes not so litt le, ads in the Yellow Pages.

Google has taken away many purposes for Yellow Pages to

exist. It also can give you one of the greatest free gift s known to advertising, online or otherwise.

Take all of the information you might cram into your litt le Yellow Pages ad, multiply it by 100 (or more!) and throw away the bill. Google will provide you with the most amazing, free advertising systems you can imagine. Yes, for free!

Th e place to go is Google Places. I fi nd it amazing how litt le advantage many business owners take of this largesse. I have given many speeches and mentioned “Google Places” and get blank stares. Now, you will not be among them.

First, you must have a Google account. You probably already do. It is free, of course, as are many things on the consumer side of Google.

Next, google (verb) “Google Places” and click on the fi rst listing on the page. You will be directed to set up a Google Business account (also free).

Th e next step requires only your country of residence and your business (not your cell)

phone number. From there, you will be slightly surprised about what Google already knows about your company. However, you will need to provide some additional information.

Business insight

New tire customers — for free!Take advantage of googling on Google

places

Quik-Link: 800-687-1557 ext. 14119



MTD April 2011

Business insight

1. Your Web address, if Google did not guess it already.2. Your e-mail address. Th is is required for your account to be verifi ed. More about that later.3. Your business description. You have 200 characters with which to work here. Use them wisely.Without making awkward sentences, use as many key words about your business as possible. Typical key words would be tire, tires (yes, both singular and plural), service, auto service, brakes, oil change, etc.Th e sentence might read, “Need a tire? We provide [brand] tires, auto repairs and service, oil change services with fair prices and a convenient location. Clean waiting area with free coff ee and a place for the kids to play.” Th at’s 197 characters.4. Your “category.” Th ink of Yellow Pages again. Just start typing your category (e.g. “Tires”) and suggested categories will pop right up.5. In or out? Th e next question lets you indicate whether your customers need to come to your place of business or you go to them. Chances are they come to you for tires, except for emergencies.6. How will they pay? Fill in how you accept payment: cash, credit cards, direct bill, etc. Check all that apply.7. Hours. List the hours you are open. It is optional, but why would you not?8. Photos. What a deal! You can add up to 10 photos of your store, sample tires or whatever, right in your listing. Still free. It

is important that you use good photos. Digital cameras make it easy today.9. Video. Have you got a video on You-Tube that talks about your business? You can link it up in Google, which owns YouTube, so it is pleased to build traffi c there.10. Miscellaneous. Beyond your business description, Google lets you add “other stuff ” to your listing. Examples might include “Free Design” or “Emergencies 24/7.”

Once you have completed these steps, hit “SUBMIT.” Google will verify that you are really the person who owns the business, and either send you a code that you enter into a confi rming e-mail or send a postcard to your business address.

Th ese 10 steps will get you listed on Google Places. And here’s more good news. Th ere are lots of ways to enhance your positioning on Google using free and readily available tools (see sidebar). You also can access a more thorough list of ways to signifi cantly increase your exposure on Google (for free!) at www.thetirebusiness.biz. ■

Roger McManus, a new contributor to Modern Tire Dealer, writes about new profi t center opportunities and business strategies for tire business owners. His

new book, “Entrepreneurial Insanity: in the Tire Industry” is available through Amazon. Visit his blog at www.ensanity.biz, or write to him at [email protected].

10 things you might not know about Google Places

1. If Google has your map marker in the wrong spot, you can move it.2. You can see how many people visited your description on Google.3. Where you rank in Google Places (only the top seven show) is determined very differently from “regular” Google.4. You can issue coupons that customers can print out as part of your listing — for free. 5. You can accept “Customer Reviews” that enhance your exposure. If you get six Customer Reviews, you will get “Stars” in your listing.6. Competitors can cheat on Customer Reviews, but you can stop them.7. Google is very picky about how you label yourself. Use customer words like “tires,” not just “auto service.”8. Using your city name in your description is important. For example, “Cleveland Tires” is better than “Tires.”9. If your URL has the same words as your description, you will do even better (e.g., www.clevelandtireservice.com).10. It is relatively easy to fi x listings that are done incorrectly.

Quik-Link: 800-687-1557 ext. 1412038



Quik-Link: 800-687-1557 ext. 14121



MTD April 2011

By Wayne Williams

A s Kermit the Frog says, “It’s good to be green.” It’s good to be environ-

mentally responsible. It’s good to support schools, charities, Litt le Leagues, the American Youth Soccer Organization, etc. It’s good to be aware and supportive of the wide variety of good causes and needs in your community.

It is, however, the primary business of business to serve the community at large and customers individually with the products and services that the business provides.

To do this eff ectively, a business must be prepared and focused.

Th ere are some businesses that have no business being in business. These businesses tend to operate outside of good, solid business principles, so their days are numbered.

Let’s look at an aspect of good business that is very detail-oriented, yet yields great returns. Th e subject is: “preparedness.”

Chance favors the prepared

Louis Pasteur is quoted as saying, “Chance favors the prepared mind.” Th at makes sense. Th e chances for success in any given endeavor require some degree of preparation. Th e Lunar Landing is the classic example of preparedness and planning. Just a few degrees off at any point in the execution, and the mission would have become a failure.

I was visiting an independent tire dealer in central California a few weeks ago. While there, I witnessed a sales team serving customers with relative ease. Customers were greeted, advised, sold, writt en up and cashed out with a rhythm that was inspiring.

As a former district manager and regional vice president for the company, I was not surprised at the smoothness and effi ciency which was demonstrated customer aft er customer, phone call aft er phone call.

Th is team was prepared! Th eir preparedness was evident everywhere. First, the outdoor merchandising was clean and fresh. Banners were hung straight and with care. Th e tire barrel stackers were new, not sun-faded and dirty. Th e double entry doors were not litt ered with stickers; simply push/pull decals, with the store hours prominently displayed.

Once inside the store, the large sales area, with a black-and-white checkered fl oor, was buff ed clean. Th e merchandise was properly displayed and categorized by vehicle type. Th e store manager and district manager pointed with pride to a new off -road display they had just built with the latest wheels and tires.

Th e day I was there they were in the process of upgrading their waiting area and media presentations for customers waiting on their vehicles.

Of course, the overall feel of the store and the environ-ment was pleasant, to say the least.

Improving the customer experience

Unfortunately, how-ever, many stores look nice, but function poorly. Th is team was prepared beyond the visual aspect. As I have said in the past, and fi rmly believe, “If it doesn’t work at the coun-ter, it doesn’t work.”

First, the sales counter was neat and orderly. As I watched the counter team in action, they were able to answer the phone and customer questions with ease because the informa-tion they needed was at their fi ngertips.

On several occasions, the sales team made outgoing calls. Th e fre-

quently used numbers were permanently affi xed to the countertop for easy reference. Behind the sales counter was another counter that acted as a support to the activities of the main sales counter.

In the early 1990s there was a concerted eff ort by most

Counter intelligence

Th e primary business of business is business!

To prosper, you must be prepared and focused

Sales counters should be neat and orderly so your sales team can answer questions with ease. And make sure they have the information they need at their fi ngertips, like frequently used phone numbers.

mt

Ic

enThbAadt

wwitc

SS l hh lld bb dd d l

By Wayne Williams

40


Quik-Link: 800-687-1557 ext. 14122



MTD April 2011

Counter intelligence

retailers to improve the customer experience at retail locations. Articles were writt en and promises made regarding easy return policies, fast, knowledgeable clerks, etc.

Today, however, it is rare to experience what I witnessed at this dealership — smooth, seamless, friendly, professional service. Th ese guys were literally “handling the business of handling customers.”

Let me expound on the details a bit. Th is is a high volume store, not because it enjoys a large footprint with ample parking and multiple service bays, but because it is prepared for volume.

Not only is the counter orderly, with current tire and wheel information readily available, there are extra pens for customer use on the counter. It also seems that every transaction in our business requires a stapler to complete. Th ere were three fully loaded staplers ready for “the business of doing business”; one on one end of the counter,

one in the center, and one on the other end. Th ese are litt le details that I know is not a mistake or random because I know the team, I know how they think. Th ey are prepared.

No fumbling around for pens or staplers or warranty forms. Each day the printers are stocked and fully loaded for printing invoices. Th e layout of the showroom is conducive to effi cient presentations, and current brochures are readily available.

Th is business is in the business of doing business!

Th is business has the largest market share of any tire retailer in the areas they service. Th ey are the recognized leader.

Th ey are prepared! ■

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

Telephone etiquette First impressions matter to callers

There is nothing more important to building and sustaining a business than proper phone techniques.

Yes, customers research on the Internet. Yes, they shop around. Yes, you may not have their particular tire in stock. None of these do you have any real control over. You do have control over the phone, how it is answered, and the tone and profes-sionalism with which each customer is addressed and handled.

First, what’s everybody in a hurry about? Secondly, stop answering the phone like a scripted robot. And lastly, remember that some phones in your dealership should not be used to take incoming calls.

Certain stores answer the phone so fast that you cannot understand what the person is saying. I’m not exaggerating. I call it “the big syllable.” They answer the phone with one blast of words so fast that it sounds like one word, and it’s impossible to understand. “HELLOTHISISABCTIRECOMPANYHOWCANWEHELP?”

It’s just plain rude to answer a phone in this manner. The customer feels like an intrusion rather than a welcomed caller. Take a full three seconds and answer the phone properly.

The second worst phone technique is “the robot” or “the recital.” It goes some-thing like this: “Good morning and thank you for calling Big Regional Tire Co. How may I be of assistance to you today?”

To the customer it sounds like this: “I’m sorry I have to say all these words every time you call, but my company says I have to say them so here I go. ‘Good morning and thank you for calling Big Regional Tire Co. where we meet or beat every single price on every single tire every single day how can I help you? Oh, and my name is George.’”

After listening to all of that, nobody is going to remember your name, nor the name of the company. This is so canned it’s unnatural, it’s not friendly, and it sounds uncaring and corporate.

And the last no-no is a tire store classic: Answering the phone in the noisiest place in the shop. All the customer hears is the whining of the air gun or the air chisel hammering away. They can’t even hear you say, “Hang on while I get to another phone.” Answering the phone in the noisy service bays cannot be a necessity; it just shows poor planning.

42


Quik-Link: 800-687-1557 ext. 14123



MTD April 2011

By Bob Ulrich

General G-Max AS-03 engineers started with a winter tire compound and an all-season tread patt ern. Th en they tweaked both until they ended up with

an ultra-high performance tire, too.And they optimized the noise dampening characteristics

of the tread pattern with Acoustic Modulation Sound Technology. What’s not to like?

Apparently, nothing. Th e new AS-03 is the fi rst in what Joe Maher, passenger and performance product manager for Continental Tire the Americas LLC, says will be General’s G-Max family of UHP tires.

Th e company is “still discussing” other family members, including a G-Max summer tire.

Th ree dimensional sipes Engineers develop all-season tires for three

seasons, not four, “because fall and spring are very similar,” says Dr. Juergen Dzick, Continental’s head of replacement consumer tire line develop-ment. “It’s really about dry, wet and snow and winter traction.”

First, the compound has to stay supple in very low temperatures. Dzick says the AS-03 can withstand temperatures well below freezing.

“Th e lower the britt le point, the bett er it is for winter conditions,” says Robert Liu, technical product manager for passenger tires.

Continental used its 3D Sipe Technology to design interlocking tread blocks within stra-tegically placed sipes. Th e raised and recessed elements interlock during cornering, which improves handling and reduces heat.

“With a normal sipe... you reduce the strength of the structure,” says Liu. With 3D siping, “when you corner, the sipe becomes more of a block than a sipe. It’s a way of gett ing winter traction without giving up dry traction.”

Sipes on each shoulder also are used to visually indicate irregular wear. If a sipe on one side of the tire wears off before a corresponding sipe on the other side, then the vehicle is out of alignment.

For water evacuation, the G-Max has a V-shaped, directional tread patt ern (“the two really go together,” says Liu) with what the company refers to as “aqua-cleave” channels.

Continental is backing the new General tire with a 45-day free trial guarantee.

Phasing out the Exclaim UHP

Th e G-Max AS-03 eventually will replace the General Exclaim UHP. It is available in 35 sizes, which represent 73% of the tire’s projected sales volume.

By August, there will be 63 sizes (see sidebar), including six 20-inch sizes not available in the Exclaim UHP line.

Continental is building the sizes in Mount Vernon, Ill., Mexico and Europe, “wherever it’s most effi cient to build the tire,” says Maher. Popular vehicle fi tments range from the Acura RSX and BMW 5 Series to the Chevy Cobalt, Ford Mustang, Nissan Altima and Toyota Corolla.

Maher adds that the General G-Max AS-03 will compete against the Goodyear Eagle GT, Kumho ASX, Yokohama Avid ENVigor, Hankook Ventus V4ES, Toyo Proxes 4, BFGoodrich gForce Super Sport A/S, Uniroyal Tiger Paw GTZ and the Dunlop Signature Sport in the replacement market. ■

Focus on industry

A UHP tire for all seasons Winter? Spring? Summer? G-Max doesn’t care

Continental’s Replacement Tire Monitor Technology alerts customers when a G-Max AS-03 tire has reached a tread depth of 2/32nds-inch. When worn, the words “Replace Tire” will be clearly visible on its indicator strip.

Sizing up the G-MaxWill 63 tire sizes be enough?

The General G-Max AS-03 will be available in 63 sizes in August. The W-rated sizes range from 205/55R16 through 275/30R20. Two sizes, 195/55R15 and 195/55R16, are V-rated. Here’s a further breakdown.

15-inch: one size. 16-inch: eight sizes.17-inch: 16 sizes. 18-inch: 17 sizes. 19-inch: 13 sizes. 20-inch: eight sizes.

According to Joe Maher, passenger and performance product manager for Continental Tire the Americas LLC, additional 20-inch sizes are being discussed.

The company made 35 of the 63 sizes available to tire dealers in April.

44


MTD April 2011

By Bob Bissler

W hat do you do when you have a consumer who wants a highway-worthy, off -road capable truck tire? If you’re Michelin North America Inc., you

come up with the BFGoodrich Rugged Terrain T/A.Th is new generation off -road tire looks aggressive but has

a quiet, smooth ride. It was designed for drivers who want an all-terrain look while they drive around town — and the ability to go off -road if they want to.

To meet this market segment, BFG tire engineers drew upon the brand’s history of extreme off -road tires.

Marcus Baff oe-Bonnie, country marketing manager — light truck, says the former B.F. Goodrich Tire Co. invented the off -road cat-egory with the launch of the All Terrain T/A 35 years ago. Since then, the brand has held a strong presence in the off -road marketplace with tires such as the Mud Terrain, the Krawler, the Baja T/A and the Long Trail T/A.

“We believe it’s time to mark yet another milestone,” says Baff oe-Bonnie. “We asked, ‘Why do you want an aggressive looking tire?’ Th ey said, ‘It looks good on my truck and I want to go off -road.’ We asked, ‘How many times have you gone off -road?’ Th ey said, ‘Never.’

“We’ve watched the marketplace evolve and we believe it has evolved into a very interesting consumer segment.”

Michelin estimates this segment will represent about two million tires within fi ve years.

Consumers in this segment want the capabil-ity of going off -road even though they have zero intention of ever doing it, says Baff oe-Bonnie. “And given that they spend so much time on the road itself, they are very unwilling to give up the quiet, smooth, comfortable ride of a good on-road tire.”

BFG engineers had to take the technical side of tire design and blend it with aesthetics. Th e result is a well-performing street tire with an off -road look that really can go off -road. BFG engineers combined several features to achieve that end result.

“Th e fi rst feature you notice about the Rugged Terrain T/A is the wrap-around tread that wraps down on the side of the tire,” says Steve Calder, product category manager for BFG light truck tires. “In soft soil, mud, snow, especially unpacked snow, you increase your biting edges with those sidewall features.

“With the face of the tire, on some of the larger areas between the tread elements we have stone ejectors — litt le triangle pads of rubber that have two functions. Ideally, they kick the stone out before the stone has any time to drill. If a stone does get lodged in there, the ejectors give you additional cushion.”

Calder says BFG engineers placed an emphasis on reducing tread patt ern noise in the new tire.

“It looks really gnarly, but doesn’t sound that way. As a tire is rolling through the contact patch, if you’ve got large gaps and a real

blocky shoulder, it generates noise that can get broadcast out of the grooves like litt le megaphones.

“If you block them off , it reduces the noise. We didn’t block all of them because you need to balance the noise reduction versus the ability of the tire to evacuate water.”

Two circumferential grooves in the tread patt ern allow water to evacuate through the tire. Th e tire’s rubber compound has been modi-fi ed and optimized for wet grip.

Th e Rugged Terrain T/A gets its high-speed handling characteristic from BFG Equal TEnsion Contain-ment (ETEC) technology, which features the use of a spiral wrap of nylon around the tire. Calder says the steel belts in the Rugged Ter-rain use a new type of steel called a super-high tension steel that is 10% stronger than the company’s previous belts for off -road tires.

“One thing not many people real-ize is that out of the 19 components that are built into this tire, only one of them holds air and that’s the

inner liner,” he says. “Th is tire has a thicker inner liner than its predecessor, and it’s 15% less-permeable to air.”

Th e Rugged Terrain T/A, which goes on sale May 1, is backed by a 50,000-mile manufacturer’s limited tread life warranty. It is available in 36 sizes ranging from P235/75R15 XL to LT275/65R20 Load Range E.

“We have P-metrics, LT-metrics and we have one fl otation size,” says Calder. “We’ll continually be scanning the market to see if there are any sizes that we need to cover... those can be added down the road.” ■

Focus on industry

Rugged and roadworthyBFG’s new Rugged Terrain T/A goes off -road(if that’s what the consumer really wants)

Michelin says the Rugged Terrain T/A falls into the “hybrid” tire category: a tire with off-road looks and a smooth on-road ride. It increases the BFG brand’s light truck market coverage in P-metric and LT-metric sizes 97% and 95%, respectively.

46


MTD April 2011

By Identifi x

SUBJECT VEHICLES: Audi A4 and Volkswagen Passat ABS/EDL-equipped vehicles.COMPLAINT: Problems with the EDL, which uses ABS components to adjust drive wheel speed for traction, steering control and vehicle stability. CAUSE/SOLUTION: Possible ABS controller failure. Follow diagnosis below.

Th e ABS/EDL system uses an Electronic Diff erential Lock (EDL), which is a low speed, traction assist system that acts automatically without the driver’s intervention. EDL uses many of the ABS components to adjust drive wheel speed for improved traction, steering control and stability. EDL operates during acceleration up to speeds of 25 mph (40 km/h) on front-wheel drive cars. On vehicles equipped with 4Motion, EDL operates up to speeds of 50 mph (80 km/h).

(EDL supplements the standard ABS functions on: Bosch 5.0 ABS, Bosch 5.3 ABS, Bosch 5.7 ABS, Teves MK 04, ITT MK 20 IE ABS, ITT MK 60 IE ABS.)

To prevent the drive wheels from spinning during low speed acceleration, EDL monitors the drive wheels using the wheel speed sensors. If excessive drive wheel spin is detected, the self-priming pump in the hydraulic unit extracts brake fl uid from the master cylinder reservoir, and then pumps the fl uid through a solenoid valve and into the brake caliper of the wheel with the highest rotation rate. As a result, the drive torque is transmitt ed through the diff erential to the drive wheel with the most traction. In the event of calculated high brake system temperatures (caused by repeated severe EDL operation), the safety circuits within the ABS control module may de-activate EDL control to prevent the brakes from overheating. EDL will become operational again, once the ABS control module recognizes a calculated brake temperature within a specifi ed range.

If a fault occurs in the ABS, both the ABS and EDL will be disabled and the ABS warning light will illuminate. Th e ABS/EDL system receives a “Standing Time” signal (also known as a Time Interval Management signal) generated in the instrument cluster each time the ignition switch is turned to the “on” position. Th is time signal is used to calculate brake temperature based on the number and interval of applied EDL events. ABS code 01203 indicates a problem with this time signal.

Approach to diagnosisTh e ABS controller can fail in such a way internally that

it will back feed voltage into the instrument cluster via the ‘standing time’ signal wire. When both the ABS and brake

lights are illuminated and/or fl ashing, always start with a diagnosis of the ABS controller. If the voltage back feed from the ABS controller is large enough, it can adversely aff ect CAN communication between all modules on the CAN bus and can cause the instrument cluster displays to operate incorrectly.

How to proceed with the diagnosis1. Using a full function factory compatible scan tool,

check and verify that communication is possible with the ABS system. Use Address Word 03 to access the ABS.

2. If scan tool communication is possible with the ABS system, check for code 01203 in system memory.

3. If scan tool communication is not possible with the ABS system, check and verify that scan tool communica-tion is possible with any other vehicle system (engine, transmission, SRS, etc.).

4. If communication is possible with other systems, check for correct switched ignition power to the ABS controller pin #15 (black/blue wire). Th ere must be 12 volts with the ignition on.

5. Check ABS controller pins #17 and #18 (both red/black wires) for 12 volts at all times.

6. Check ABS controller pins #16 and #19 (both brown wires) for good ground at all times.

7. If tests 1 through 6 all pass, proceed as follows: Using a lab scope, check for the presence of a Standing Time signal from the instrument cluster to the ABS controller pin #10 (green wire). Th is signal will appear as a series of quick 11-volt to zero volt square-wave pulses a moment or so aft er ignition is turned to the “on” position. Th e signal typically lasts only a few seconds. Th e signal must be a clean square-wave form and cycle all the way to zero volts. If the signal does not reach zero volts on the down slope, it is not correct.

8. If no signal or an incorrect signal is present, turn the ignition switch off . Disconnect the ABS ECU. Turn the ignition on and recheck for a signal at pin #10 on the wiring harness side.

9. If a correct 11-volt square-wave signal is now present, likely there is an internal driver problem with the ABS ECU.

10. If there is still no signal, check the wiring from the ABS ECU to the instrument panel. Pay special att ention to the orange connector at the driver’s side kick panel connector station for corrosion or damage. If the wiring is OK, there is a likely failure of the instrument cluster itself and additional diagnosis of the cluster will be necessary. ■

Information provided by Identifi x Inc. For more information, call (800)

997-1674 or visit the company’s Web site at www.identifi x.com.

NVH solutions

Passing on the PassatWhen the scan tool fails, diagnose the ABS controller fi rst

48


MTD April 2011

SUBJECT VEHICLE: 2007-10 Chevrolet Silverado.SENSOR IN TIRE? No (sensors/trans-mitt ers are installed in wheels).RESET PROCEDURE? Yes.SPECIAL TOOLS NEEDED? Yes (TPM Sensor Activation Tool J-46079).

When a 2007-10 Chevy Silverado is moving 20 mph or faster, the tire pres-sure monitoring system’s (TPMS) wheel-mounted tire pressure sensors transmit radio frequency signals to the Driver Information Center (DIC) every 60 seconds. Th e DIC displays individual tire pressures as well as their locations. Th e Remote Control Door Lock Receiver (RCDLR) receives and translates the data in each sensor trans-mission, then sends the tire pressure and tire location data to the DIC. Th e sensor’s pressure accuracy is 2 psi at temperatures from 14-158 degrees Fahrenheit.

Th ere are two diff erent kinds of TPMS sensors in use on 2007-10 Silverados — the clamp-in style and the snap-in style. Refer to Figure 1 and Figure 2 aft er the tire has been removed from the wheel to determine which sensor is in use.

To remove an old sensor, follow these steps.

1. Raise the vehicle and remove the tire/wheel assembly.

2. Demount the tire from the wheel following the manufacturer’s instructions. Pay special att ention to the following to avoid damaging the sensor.

• Place the sensor’s cap and valve on a

dry, clean surface aft er removal. Th e cap is aluminum and the valve is nickel-plated to prevent corrosion. DO NOT substitute a cap or valve made of any other material.

• Position the bead braking fi xture 90 degrees from the valve stem when separating the tire bead from the wheel.

• Position the mounting/demounting head so the tire iron (or pry bar) can be inserted slightly clockwise of the sensor body when prying the tire bead up and over the mounting/demounting head.

• Using a tire machine, rotate the tire/wheel assembly clockwise when transfer-ring the tire bead to the outside of the wheel rim.

• Repeat for the inner bead.

3. If the sensor is the clamp-in style (see Figure 1), follow the “clamp-in style” removal procedures. If the sensor is the snap-in style (see Figure 2), follow the “snap-in style” removal procedures.

Clamp-in style sensor removal1. Remove the tire pressure sensor nut

(see Figure 1).2. Remove the sensor from the wheel

hole.3. Remove the sensor grommet from

the valve stem.4. Follow the clamp-in installation pro-

cedures to replace the sensor.

Snap-in style sensor removal1. Remove the TORX screw (Figure

2, item 3) from the tire pressure sensor (Figure 2, item 2) and pull is straight off

the tire pressure valve stem (item 1).2. Remove the tire pressure valve stem

by pulling it through the rim.3. Follow the snap-in installation pro-

cedures to replace the sensor.Th e next step is to install replacement

sensors by following these steps.

Clamp-in sensor installation1. Clean any dirt or debris from the

grommet sealing areas. Install the grom-met on the sensor valve stem.

2. Insert the sensor in the wheel hole with the air passage facing away from the wheel.

3. Install the sensor nut, and position the sensor body parallel to the inside wheel surface while tightening the nut to 62 in.-lbs. (7 Nm). NOTE: Clamp-in sensors are shipped in the “off ” mode

TPMS

Hi-yo Silverado!Chevy models feature two diff erent kinds of sensors

Figure 1

Figure 2

Quik-Link: 800-687-1557 ext. 1412450




and must be turned on by spinning the tire/wheel assembly above 20 mph for at least 10 seconds.

4. Before installing the tire on the wheel, note the following items to avoid tire pres-sure sensor damage upon tire mounting.

• Position the mounting/demounting head 180 degrees from the valve stem.

• Position the bead transition area 45 degrees counterclockwise of the valve stem.

• Using a tire machine, rotate the tire/wheel assembly clockwise when trans-ferring the tire bead to the inside of the wheel rim.

• Repeat for the outer bead.5. Install the tire on the wheel. Install

the tire/wheel assembly on the vehicle. Retrain the tire pressure sensor.

Snap-in style sensor installation1. Assemble the tire pressure sensor

(Figure 2, item 2) to the valve stem and install the new TORX screw (item 3).

2. Apply tire soap to the rubber portion of the valve stem.

3. Using a tire valve stem mounting tool, pull the valve stem through in a direction

parallel to the valve hole on the rim. NOTE: Snap-in sensors are shipped in the “off ” mode, and will exit the “off ” mode when the tire is infl ated.

4. Before installing the tire on the wheel, note the following items to avoid tire pres-sure sensor damage upon tire mounting.

• Position the mounting/demounting head 180° from the valve stem.

• Position the bead transition area 45° counterclockwise of the valve stem.

• Using a tire machine, rotate the tire/wheel assembly clockwise when trans-ferring the tire bead to the inside of the wheel rim.

• Repeat for the outer bead.5. Install the tire on the wheel, and install

the tire/wheel assembly on the vehicle. Retrain the tire pressure sensor.

Now you’re ready to retrain the tire pressure sensor.

1. Using a scan tool, initiate the TPM Learn Mode. A double horn chirp will sound indicating the Learn Mode has been enabled. Th e left front turn signal will also be illuminated.

2. Starting with the left front tire, activate

the sensor by holding the antenna of the J-46079 aimed upward against the tire sidewall close to the wheel rim at the valve stem location.

Press and release the Activate butt on and wait for a horn chirp.

Once the horn chirp has sounded, the sensor information is learned and the turn signal in the next location to be learned will illuminate.

3. Aft er the horn chirp has sounded and the right front turn signal is illuminated, repeat step 2 for the remaining three sen-sors in the following order: 1) right front 2) right rear, 3) left rear.

4. When the left rear sensor has been learned and a double horn chirp has sounded, the learn process is complete and the RCDLR exits the learn mode.

5. Turn the ignition off and adjust all the tires to the recommended pressures. ■

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.mitch-ell1.com.


MTD_52.indd 1MTD_52.indd 1 4/28/11 12:24:19 PM4/28/11 12:24:19 PM






MTD_54.indd 1MTD_54.indd 1 4/28/11 10:35:07 AM4/28/11 10:35:07 AM



























MTD April 201156


www.lakintire.com

www.lakintire.com

www.millertire.com

www.wallacewade.com

www.gotusedtires.com

www.cokertire.com/moderntire

mailto:[email protected]




http://www.tire-dealer-software.com

www.aasys.com

www.tsissg.com

www.wesbrooksinc.com

www.asatire.com




MTD April 201158


www.wheelcollision.com

www.TireDealerJobFinder.com

www.aasys.com

www.asatire.com

www.coker.com

www.emanueltire.com

www.gotusedtires.com

www.lakintire.com

www.millertire.com

www.tsissg.com

www.tire-dealer-software.com

www.wallacewade.com

www.wesbrooksinc.com

www.wheelcollision.com



http://www.gorilla-auto.com

http://www.gorilla-auto.com


Dear Editor:I have to disagree with Wayne Williams’

article in the December issue concerning “Good, bett er, best is dead.”

I believe it is quite the contrary, espe-cially at this time in our economy.

Now more than ever custom-ers need to know “Where is the middle?” when purchasing tires. Th is is simply because they might be keeping their car longer and need tires and related services which may keep their present vehicle going for another 30, 40, or 50K miles until they get the opportunity to purchase a new (or lower-mileage used) replacement vehicle. (In other words, they come up with the “cash” from their budget or fi nd a new job!)

In my opinion, Williams’ article misrepresents a key market-ing strategy for the independent tire dealer that is, to this day, a viable marketing tool.

Th e “good, bett er, best” strategy defi nes the middle to the prospective buyer, no matt er what you are selling!

Williams is forgett ing to educate the independent tire dealer that the age-old problem in this industry is greed, and greed has created this nightmare for tire availability in a major way. It is the “greed factor” that has forced major brand manufacturers to seek out other retail sources to sell their products (i.e., auto dealers) that would gladly sell a major brand over a private brand at a decent profi t margin (and I am not speaking about percentages here either! I am talking dollars).

I have over 35 years of successful retailing experience with “mom and pop’s” to major chain tire retailers, auto dealership tire sales training, and everything in between, and I am here to tell you fi rst-hand that the “good, bett er, best” sales scenario did work in the past and is working today... successfully!

Most of the “guilt” of this current tire selling dilemma situ-ation for the independent tire dealer is from a lack of eff ective sales training of the basic key elements that it takes to sell tires — profi tably.

Part of the cure is done by unchaining the salespeople from the counters and sending them out to the car to make an intel-ligent recommendation to the customer based on “agreeable facts” that both parties can see, and talk about, to make an intelligent buying decision! If “good, bett er, best” is incorporated in their merchandising and advertising, then when the buyer is re-introduced to the showroom, they can then see the middle and understand the quotes given.

Th e lack of training (real-world training), greed on both sides of the table, and laziness has caused this situation in our industry and our country in general, for that matt er.

A small retailer bett er get a good grasp of the conceptual dif-ference between “relationship selling” vs. “transactional

selling” to survive today. Chain stores (and the like) are “transactional sellers.”

Th ey have to be. It’s all about moving tonnage — thus price concentration, on their part.

Small independents have to build relationships to sell, or they will be quickly out-fl anked. “Relationship selling”

is their key to survival. It is that relationship that is going to build the trust to move a customer off price and into their true

needs for products and services. Th ey can help solidify those decisions by giving options that present the “middle” of the choices available to the customer.

It is time to stop re-inventing the wheel and simply get out the old product sales training lessons, that are decades old, and get to it! Every prospective tire customer should be get “V.I.P.” treatment, and if you are from the tire industry, you know what “V.I.P.” really stands for!

Harry Anderson, ConsultantTire Sales Doctor

Rocklin, Calif.And that’s not Vehicle Inspection Program, says Anderson, who

is now a sales consultant for independent tire dealerships, building on his foundation of 35 years spent working in many aspects of the tire industry. Over the years, he has worked for Super Shops Automotive Performance Centers, BFGoodrich, Big O Tires and Competition Parts Warehouse (CPW) in San Jose, Calif., where he created the “Retail Design by CPW” division which included sales and customer service training for tire dealers and auto parts stores. He also worked for AmPac Tire Distributors of Northern California/Northern Nevada.-Ed.

Th e Tire Rack is our most‘transparent’ competitorDear Editor:

Th anks for a great editorial in the February issue, “Is Tire Rack your competition?”

Yes, Tire Rack is a competitor, but it is the most transparent competitor we have.

With a few keystrokes I can see exactly what the consumer is paying. I can always be competitive with Tire Rack on price, even if I have to buy the tires from them. And then we can extend outstanding service and retain the customer’s future business.

Who in the tire business is not a competitor for us in some way?

Randy Campbell, Store ManagerGriffi n Brothers Tires, Wheels & Auto Repair

Lincolnton, N.C.

Your turn

Stop re-inventing the wheel!‘Relationship selling’ is still your key to survival

Williams’cerning

espe-y.m-e

hicle miles until they

new (or lower-mileage

A smallfere

se

Th eprice

Smor they

is their kbuild the

needs for decisionschoices av

It is timthe old pr


MTD April 2011

Your turn

Th e auto dealer is our biggest competitorDear Editor:

Concerning your February editorial, places like the Tire Rack are defi nitely our competition.

You mention if the end user buys a tire and wheel package from Tire Rack, the independent dealer would get a litt le money. Mostly that’s not the case. Th e customer would jack up their car at home and install them at home.

Th e saddest thing about the installer program is the same independent tire dealer or car dealer who isn’t smart enough to charge a fair markup for what they retail also mounts and balances for Tire Rack at a discounted price on labor (mount-ing, stems and balance) and does the rotation and rebalance at no charge.

I know all the arguments for gett ing the customer back in

my store, but that same customer goes right back to Tire Rack or the cheapest place the next time he or she buys. I question the wisdom of all that.

I believe the auto dealer is our biggest competitor at this time. In our area they use tires as a giveaway to att ract customers to their dealerships.

Th ey even put a-boards outside with the “We will beat anyone’s price” on major line tires and then name them — Michelin, BFG, Bridgestone Goodyear.

I think that’s a place where independent tire dealers are enablers — to sell and deliver to the auto dealer for a very small margin to assist them in taking our own customers away.

Ed Miller, OwnerEd’s Tire Factory

Medford, Ore.

Join Modern Tire Dealer’s National Advisory CouncilEach month, Modern Tire Dealer is guided and infl uenced by a select group of readers — members of our National Advisory Council. Th ese members’ opinions are the heart of the monthly Ludwig Report, compiled by well-known industry analyst Saul Ludwig. If you’d like to join this prestigious group, please let us know. We’d love to hear from you. Contact Editor Bob Ulrich at [email protected] or call (330) 899-2200, ext. 11.

“Increases in tire and fuel prices will have consumers looking for discounted and lower-quality tires.”

Tim Sielaff, Vice President of PetroleumCooperative Elevator Co.Pigeon, Mich.

“They say the economy is getting better. However, the demand for tires dropped off the fi rst quarter of this year compared to last year.”

Jerry Reygaert, OwnerReys Auto & Tire

Shelby Township, Mich.

“Like everyone, we are experiencing tire shortages (possibly intentional supply short-ages/problems to raise prices — like a 12% increase across the board). The small retailers are getting a 40% fi ll rate, so we are forced to buy from wholesalers, which shrinks our retail margins about 10%. Wholesalers are loving this effect — if they can get tires, too.”

NAC member (name withheld upon request)

“January and February were my two worst months. Sales and traffi c increased in March, thank the Lord. We also have been doing a lot of advertising. I pray business will increase signifi cantly through the summer.”

Jeff Fountain, Owner Jeff Fountain Tire Sales and Service Inc.

Wilmington, N.C.

“I am concerned that the rising prices for diesel fuel and gasoline will start impacting our sales negatively. If miles driven go down, sales will do likewise.”

Bill Anders, PresidentBurlington Tire Service Inc.

Burlington, N.C.

60


Quik-Link: 800-687-1557 ext. 14125



Quik-Link: 800-687-1557 ext. 14126



Modern Tire Dealer April 2011

Documents

Transcript of Modern Tire Dealer April 2011