Modern Tire Dealer June 2012

THE INDUSTRY’S LEADING PUBLICATION

June 2012 | Vol. 93, No. 6 | $10 | A Bobit Publication | www.moderntiredealer.com

3 dealers, 3 success stories

Social media management:

Maintaining your position as

dominant choice

Truck tire trends■ Wide-base

■ Brand shares

■ Going green

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Modern Tire Dealer is a proud member of:

TIRE RETREAD & REPAIR INFORMATION BUREAUTRIBTRIB

MemberAn Industry Association

Features18 3 dealers, 3 success stories

What do they have in common? Th ey’re all 20 Group members

24 Rough road to a bigger dealership Owners detail diffi cult birth of Boni Tire and Auto

32 No resistance to fuel savingsTire makers respond to consumer demand for

environmentally friendly products

Commercial Tire Dealer™37 Roll models

Tire manufacturers continue to help fl eets and truckers get the most fuel savings possible

42 Wide loadWide-base truck tires are evolving from a segment trend

to a growing market

45 Truck tire market shareExpect replacement and OE sales to be up this year

46 Body of workService truck body material depends on the truck’s

operating conditions and the fl eet’s overall objectives

48 Commercially Viable

4 EditorialDriving in our country is a gas, gas, gas

6 OnlineTraffi c report: News from around the corner and around the world

8 News/viewsCommercial resettlement: Colony buys Kramer facilities, sells 18 retail stores to Monro

16 Ludwig ReportShort-term, look for a decline in Chinese tire imports

50 Business insightSocial media management: How to maintain your position as dominant choice

54 Focus on industryBKT nurtures off-road tire sales: Goal is 10% of the global market for agricultural tires

56 Counter intelligenceOld adages: Teaching an old dog new tricks... and much more!

57 Focus on industryPut to the test: Goodyear Eagle F1— Race-inspired tire offers all-season traction

58 TPMSFocal point: 2010 Ford Focus — A smart junction box sends low pressure messages to the instru-ment cluster

66 Your turnLearn to ‘just say yes,’ dealer advises

60 Products62 Quik-Link63 Classifi ed

Th e Industry’s Leading PublicationJune 2012, Volume 93, Number 6

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MTD June 2012

The price of a gallon of gas-oline in Europe is more than $8. Could that one

day be the price of gas here in the United States?

Unless some catastrophic event occurs, I say no. Domestic oil production is high, and there are many in Washington, D.C., both Democrats and Republicans alike, who appear to be fi ghting against it.

Th en why is anyone predicting otherwise? I remember reading that some in the oil and gas industry believed gas would cost $5 a gallon by 2012. Th ey, of course, were wrong. And as the year unfolds, they can’t even claim they were ahead of their time.

I don’t know what the price of gaso-line is in your area, but in northeast Ohio, it is still less than $4 a gallon. Although there is no set trend, here are the numbers, courtesy of the American Automobile Associa-tion’s weekly “Fuel Gauge” report: $3.35 a gallon at the beginning of the year, $3.76 fi ve months later. One year ago, the average price of gas was higher than that.

Th e national average, by the way, is $3.63 a gallon, in large part due to high prices on the West Coast.

Th at brings me to an e-mail I re-ceived recently from United States Senator Sherrod Brown. “I’m tired of the stranglehold oil companies have on our national energy policy,” he wrote. “And like many Ohioans, I believe we need to take a ‘do it all’ approach to reducing gas prices.”

With that said, he wanted to know what I thought of six possible solutions, although I’m not sure why it matt ers if he wants to “do it all.” Here they are (with a few of my comments in parentheses).

1. Crack down on speculation. “Prevent Wall Street speculators from driving up the price at the pump. A recent report found that excessive speculation adds 56 cents to every gallon of gas you put in your car.” (Th e “report” to which he is referring was a Forbes story on www.forbes.com.)

2. Drill it here, keep it here. “If oil companies produce

oil on public lands in the U.S., then it should stay here. No longer

should oil companies export our own oil overseas, when we need it here at home.”3. Cut wasteful subsidies for “Big Oil.”

“End wasteful tax giveaways for Big Oil and use the savings to break the stranglehold Big Oil

has on consumers by investing in clean energy.” (Th at would have to be “clean energy” as it applies

to light vehicles; otherwise, the lack of subsidies will cause the oil companies to raise gas prices.)

4. Improve fuel effi ciency of cars and trucks. “Increase fuel-effi ciency standards for vehicles so that consumers get more miles per gallon and spend less on gasoline.” (Th is could lead to higher prices. State and federal — and, in some cases, local — governments probably would take this opportunity to raise taxes

on fuel. Th e net result would be consumers paying more per gallon but the same per

tankful, and the government pocketing the extra money.)

5. End oil cartels. “Give the U.S. the authority to go aft er oil-producing nations, like the members of OPEC, that band together to drive up the price of oil.”

6. Tap America’s oil reserve. “Open the Strategic Petroleum reserve to increase domestic oil supply and lower prices.” (I no-tice he didn’t mention fracking, which is a big issue in our state.)

Since I bought my car in May

of 2010, the most I have paid for a gallon of gas is $3.99 (May

7, 2011). Th e least I have paid is $2.93 (Dec. 13, 2010). Although I don’t see the

lower number changing anytime soon, the higher number shouldn’t go much higher than $4 a gallon, and certainly not $5 a gallon.

And $4 a gallon shouldn’t hurt your business. People are still going to drive. Total miles driven last year were down by more than 38 billion miles compared to the previous year, but that only works out to 137 miles per vehicle. ■

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

Driving in our country is a gas, gas, gasBut $5 a gallon? No way

Editorial

By Bob Ulrich

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MTD June 2012

Online

Traffi c reportNews from around the corner and around the world

R eaders of Modern Tire Dealer’s website were curious about the headline of this news item: “Do you pay each technician $1.7 million?” Th at report, posted on

May 13, was the most popular on our site last month. It covers the results of MTD’s “2012 Automotive Service Survey.”

Our next most popular item was “Colony buys Monro’s Kramer facilities, sells retail” posted on May 10. It covers Colony Tire Inc.’s move to buy the commercial facilities that Monro Muffl er Brake Inc. acquired from Kramer Tire Co. in March.

Th ird most popular was a posting on May 18 titled “Right to Repair bill jumps fi rst hurdle.” It covers the Massachusett s State Senate approving legislation (S. 2204) that calls for car manufacturers to sell all non-proprietary repair information to repair shops so they can all repair vehicles using the same codes provided by the manufacturers.

World travel reports were also popular with our website readers. MTD Publisher Greg Smith’s report on his trip abroad to see Balkrishna Industries Ltd. test its

Mega Tractor tires at the ISMA test track in Treviglio, just outside Milan, Italy (May 16). And Editor Bob Ulrich’s report on his travels to Nexen Tire Corp.’s tire plant in Changnyeong, South Korea, posted on May 22 also received a lot of att ention.

Tire companies’ activities were popular, too. On May 7, Senior Editor Bob Bissler covered “Goodyear debuts Eagle F1, demos wet handling.” Bissler att ended the com-pany’s ride-and-drive at Pacifi c Raceways motorsports park in Kent, Wash. We also reported on Continental Tire the Americas LLC having two tires showcased in the 2012

Consumers Digest “Best Buys in Tires” (May 21). And on May 2 we covered Cooper Tire & Rubber Co.’s CEO Roy Armes’ opinions on “Expiration of tariff s will not have big impact” concerning tariff s possibly coming off Chinese tire imports in September.

The final top 10 news item covered “New site lets you sell excess inventory online”(May 3). GetMeTires.com helps “independent tire dealers sell their inventory online,” according to its CEO George Silagadze.

For the latest news items, readers’ comments and handy links for additional information, go to www.moderntiredealer.com.

Total access — totally freewww.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 BISSLER/TIA ATS certifi [email protected]

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

Publisher: GREG SMITH [email protected]

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

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

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

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

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

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

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MTD June 2012

Colony Tire Inc., based in Edenton, N.C., is buying the commercial facilities that Monro Muffl er Brake Inc. acquired from Kramer Tire Co. in March 2012.

In return, Monro Muffl er Brake is buying 18 Colony Tire retail stores in North Carolina and Virginia.

“Monro sold us the truck tire centers in Norfolk and Hampton, Va., and the retread plant in Norfolk,” said Scott Creighton, president of Colony Tire. “As part of that deal we sold them 18 retail stores and we held on to one retail-only store. We have 25 other combo commercial/retail stores and three wholesale distribution centers.”

The single retail store Colony is keeping is located in Edenton, where the company’s headquarters are located.

“The acquisition of 18 Colony Tire retail stores increases our presence in North Carolina to 29 locations from our current 11 locations in the state and will allow us to provide complete auto service and a broader selection of tires to more customers in these markets,” said John Van Heel, president of Monro Muffl er Brake.

Van Heel said the acquired Colony stores had sales of $25 million in 2011. Monro will continue to oper-ate all 29 combined locations in North Carolina and will add more locations in the future.

“We will convert the acquired Colony locations and fi ve of our existing North Carolina locations, now

operating as Monro Muffl er Brake & Service, to our Mr. Tire brand,” he explained.

“We sold the retail because that’s Monro’s forte and our strength is in commercial and wholesale and that’s what we’re going to grow from here forward,” said Creighton.

Creighton said Colony had considered the move since Monro fi rst announced acquiring Kramer on March 13.

“Monro has wanted to buy our retail business for many, many years but we’ve just had no interest. In an effort for us to buy their commercial, we decided it was the right time to sell our retail.”

The Kramer facilities will be renamed by Colony Tire. The retread plant will be closed and its produc-tion will be shifted to Colony’s Michelin Retread Technology plant in Edenton. The Kramer/Monro em-ployees in the two commercial centers and retread plant have been offered jobs with Colony Tire.

“We are offering positions to all Colony employees in these 18 retail stores, so the same great store teams will continue to provide complete auto service and tires to their customers,” said Van Heel.

“Additionally, we will broaden the selection of tire brands these locations carry and provide more parts inventory so we are even more convenient for customers.” — Bob Bissler

News/views

Colony Tire, Monro Muffl er swap shops

Colony gets three Kramer commercial facilities, sells 18 retail stores to Monro

Scott Creighton (left) said Colony Tire will focus on its commercial and whole-sale business going forward. His father Charlie (right) is MTD’s 2007 Dealer of the Year. Andrew Bergeron (center) is co-owner.

Colony and Kramer in the newsColony Tire Corp. and Kramer Tire Co. have been recog-nized several times by Modern Tire Dealer.

• Colony Tire is No. 46 on the 2012 MTD “Top 100 Re-treaders in the U.S.” list.

• Colony Tire was No. 29 on the 2011 MTD 100, a list of the top independent tire dealer chains in the U.S.

• Colony Tire’s CEO, Charlie Creighton, is Modern Tire Dealer ’s 2007 Tire Dealer of the Year.

• Kramer Tire was tied for 51st place on the 2011 MTD 100.

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MTD June 2012

MTD visits new Nexen tireplant in South KoreaTwo years ago, Nexen Tire Corp. broke ground on its Changnyeong, South Korea, factory. Less than two years later, the plant is up and running.

The plant, Nexen’s second in Korea and third overall, will produce three million consumer tires in 2012. Next year, the company will double that.

The eco-friendly plant takes up 20,330 square meters of space, only 4% of the total space available. By 2018, plant expansions will bring its annual capac-ity up to some 21 million tires at a total cost of $1.2 billion.

It’s all part of an “ambitious” plan to increase its global production to some 60 million tires, according to Joo Ho Song, senior managing director of global marketing.

Nexen hopes to be one of the top 10 tire manufac-turers in the world by 2018, adds Song.

The automated plant is run 24/7, 351 days a year in three shifts; only 150 workers are needed per shift.

Look for the full account on the new plant in our July issue. – Bob Ulrich

ATD agrees to acquire CTOAmerican Tire Distributors, Inc. (ATD) has executed a stock purchase agreement of Consolidated Tire & Oil, Inc. (CTO).

CTO services more than 500 customers from three Louisiana distribution centers located in Baton Rouge, Slidell and Lafayette. CTO, like ATD, focused their resources on their distribution infrastructure and delivering outstanding customer service.

“Consolidated Tire and Oil developed a well-respect-ed distribution business in their market,” said Bill Berry, CEO and president of ATD. “ATD looks forward to expanding our service to customers in Louisiana by offering an unmatched breadth and depth of product, a strong array of dealer marketing programs and unsurpassed customer service.”

News/views

Nexen’s newplant in Koreawill produce closeto 3 million consumertires in 2012.

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MTD June 2012

News/views

Kumho is offi cial tire of U.S. Soccer FederationKumho Tire U.S.A. Inc. has an-nounced its partnership with the United States Soccer Federation (U.S.S.F.) as the offi cial tire spon-sor of the United States Men’s and Women’s National Soccer teams.

Kumho Tire hosted an autograph signing with former star mid-fi elder and current manager for D.C. United, Ben Olsen, prior to the friendly match between the United States and Brazil on May 30, 2012, at FedEx Field in Landover, Md.

“Kumho’s sponsorship of the U.S.S.F. fi ts well with our national branding campaign that encourages an active and adventurous lifestyle, further highlighted by our ‘Let’s Go’ motto,” said Rick Brennan, vice president of marketing, Kumho Tire U.S.A. “With the upcoming London Olympics, we are honored to be an offi cial sponsor of United States Soccer.”

ITDG holds record-breaking annual meeting Th e recent Independent Tire Dealers Group (ITDG) annual meeting in Scott sdale, Ariz., had a record breaking number of att endees and a highly active trade show, but one break-out session captured the most att ention of tire dealers and vendors.

It was a special session by ITDG leadership to dis-cuss its current relationship with the point S Group out of Europe. Point S is the leading independent tire and auto service dealer network in Europe with 2,000+ point-of-sale members in 21 countries. Th e Point S trademark was established in France in 1971. Point S has moved from a purchasing cooperative to a marketing-purchasing group concept.

Michael Cox, president of ITDG, said, “With Point S, we get on the radar screen for overstock deals from manufacturers. Before, we were not even given the opportunity. We are then able to off er these tires to all of our members, regardless of whether they can

accept an entire container-load or not.”Cox and Fabien Bouquet, point S international operations director, said they are

working on leveraging their buying power for bett er purchasing power with vendors. Th ey both would like to see a proprietary tire line that they could use in the future.

ITDG is coming off a year in which it had $160 million in total purchases. Th e group has 74 stockholders and has dealers in 28 states. New members to the group are: Country Tire Service, Nebraska and Iowa; Farmer’s Cooperative, Dorchester, Neb.; and Montana Tire Distributors, Inc., Billings, Montana.

SEMA adds exhibitors More than 1,700 exhibitors have confirmed booth space for the Specialty Equipment Market Association (SEMA) show, taking place Oct. 30 - Nov. 2, in Las Vegas, Nev. The 2012 Global Tire Expo, sponsored by the Tire Industry Association, will take place concurrently with the SEMA Show.

Kumho runs rebate program A $50 mail-in rebate promotion from Kumho Tire U.S.A. Inc. is running now through Aug. 31, 2012. To take advantage of the savings, consumers need to purchase a set of four Ecsta 4X, Ecsta LX Platinum or Ecsta LE Sport tires, fill out the rebate form and submit it with a copy of the receipt within 30 days of purchase.

Guizhou earns Smartway OK Guizhou Tyre Corp.’s Samson and Advance brands GL283A L.E.T. have received approval from the U.S. Environmental Protection Agency (EPA) as SmartWay-approved tires for drive and steer positions. Samson and Advance tires are manufactured in Guiyang, Guizhou, China and are distributed through GTC North America Inc.

Next: Phoenix, New Orleans The Tire Industry Association (TIA) has announced more dates for the 2012 Certified Automotive Tire Service (ATS) Instructor Training Tour. The latest Tour stops to be added are: July 23-26 in Phoenix (Glendale Community College) and July 24-27 in New Orleans (Delgado Community College).For registration information go to http://tinyurl.com/tiatour.

Apollo opens S. Africa unit Apollo Tyres has opened a new state-of-the-art Component Preparation Unit at its Ladysmith tire manufacturing facility in South Africa. The 6,500-square-meter unit has the potential for further expansion to facilitate future growth. The $35 million investment includes a new calendaring machine and triplex extrusion line. Apollo says the new unit will remove capacity bottlenecks and further improve quality and productivity.

bites

Kumho Tire hosted an autograph signing with former star midfi elder and current manager for D.C. United, Ben Olsen on May 30.

Don Digby, owner of Ra-mona Tire, holds the Chair-man’s Award given to him at the ITDG annual meeting. Digby was a primary force in building the group. He joined in 1994 when it was known as the Tire Factory Groupe and served as its president for four years, then two more years when the group became an LLC.

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MTD June 2012

News/views

Gori leaves Pirelli following 1Q resultsOn the heels of what the company calls “improved” results, Pirelli & Cie SpA’s Francesco Gori is leaving as managing director of Tyre & Parts. He also was general manager of the Pirelli Tyre business sector.

Gori, who joined the company in 1978, is bound by a three-year non-competition agreement.

“The company expresses its appreciation to Francesco Gori for the signifi cant contribution to the (Pirelli) Group’s results and development made in 33 years of service,” says Pirelli.

On the same day as Gori’s departure, Pirelli recorded net income of 125.3 million euros on net sales of 1.5565 billion euros for the fi rst quarter

ended March 31, 2012. That compares to revenue of 81.4 million euros on sales of 1.4 billion for the same period last year.

Gori’s fi rst years were spent in sales departments for the Italian market and export markets. He was then appointed product manager in the Motorcycle Tyre division in 1982, and later country manager for northern European markets in 1986. He also covered the Middle East and Far East export markets since 1988.

From October 2006 to October 2011, he was president of the European Tyre & Rubber Manufacturers Association.

Mass. Senate OKs Right to Repair bill, voter signatures exceed requirementThe Right to Repair Coalition has achieved its fi nal goal of attaining 20,000 voter signatures in its ballot campaign, well above the 11,000 required.

The fi nal batch of certifi ed signatures was delivered to the Massa-chusetts secretary of state’s offi ce well ahead of the early July, 2012, deadline. Obtaining these signatures was the fi nal step in the signature gathering process required to put the issue on the ballot.

“We are thrilled that this consumer legislation has easily surpassed the fi nal signature requirement, ahead of the deadline,” said Art Kinsman, spokesman of the Massachusetts Right to Repair Coalition.

“We have heard from consumers about how pleased they are with the State Senate for acting on their behalf when it passed the Right to Re-pair legislation,” said Kinsman. “We are looking forward to fi nal passage in the legislature or on the November ballot so that we can ensure cost savings and convenience for the Massachusetts motoring public.”

The Senate made its move after consumers and neighborhood repair-ers packed a Massachusetts State House hearing room to urge passage of the Right to Repair legislation. The State Senate strongly approved the measure.

In the Senate-passed legislation (S. 2204), car manufacturers are re-quired to sell all non-proprietary repair information to local neighborhood car mechanics, repair shops and new car dealers so they can all repair vehicles using the same codes provided by the manufacturers.

“We thank chairman Tom Kennedy and the legislation’s senate sponsor, Sen. Jack Hart. Without their leadership, consumers would still be wait-ing for this step,” said Kinsman.

The Right to Repair Coalition launched the latest phase of its “Cam-paign for Consumers” earlier this spring. ■

Nitto kicks off Motivo promoNitto Tire U.S.A. Inc. is kicking off a multi-faceted marketing initiative for its all-season, ultra-high per-formance tire, the Motivo. Central to Motivo’s promotional rollout is www.ExperienceMotivo.com, a dedicated hub for fans, consumers and dealers that offers detailed information, reviews and videos on the new tire, Nitto says.

Nominate a hall of famer! The Tire Industry Association (TIA) is accepting nominations for the 2012 Tire Industry Hall of Fame. The Hall of Fame is open to individuals in the tire industry, including manufacturers, inventors, publishers, equipment suppliers, tire association executives, tire dealers, tire and rubber recyclers and retreaders. Deadline for nominations is July 6, 2012. A nomination form is available for download at www.tireindustry.org. SEMA adds wheel makers The Specialty Equipment Market Association (SEMA) Show announced that wheel manufacturers are showing signs of confidence in the economy by securing booth space. SEMA takes place Oct. 30, Nov. 2, 2012, in Las Vegas, Nev. The upcoming show will include 150+ manufacturers exhibiting in the Wheels & Accessories area.

Mitchell 1 to hold workshop Mitchell 1 will hold this year’s second Shop Management System Training Workshop July 19-21, 2012, in St. Louis, Mo. Mitchell 1 says the two-day session will guide users through all levels of functionality in the Mitchell 1 Manager and ManagerPlus system. For more information, visit the company’s website at http://buymitchell1.com.

Goodyear adds to Wingfoot Wingfoot Commercial Tire Systems LLC has added two Wingfoot Truck Care Centers to its on-highway service network, one in Gulfport, Miss., and one in Sulphur Springs, Texas. Wingfoot is a wholly-owned subsidiary of the Goodyear Tire & Rubber Co. There are now 44 U.S. Wingfoot Truck Care Centers, the company notes.

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MTD June 2012

The Chinese tariff s end on Sept. 26, 2012 — what happens then?

After shipping and handling expenses, I expect the net unit cost to an importer of Chinese tires to decline by approximately 12% vs. today’s cost, and I would then expect to see an increase in the number of tires that come into the U.S. from China. On the other hand, imports from other low-cost countries such as Indonesia, Taiwan, Korea and elsewhere should decline somewhat with the total number of imported tires increasing modestly next year. During the months of July, August and September, there could be a sharp decline in the number of Chinese imports as no one wants to pay a tariff on tires with the elimination of the tariff so close at hand. Shipments of tires from U.S. manufacturers to dealers could increase in 3Q12 refl ecting reduced Chinese imports. Domestic manufacturers who import some tires from China will lower prices modestly with no impact on profi t-ability as any price cuts would be off set with tariff savings. Bott om line: I do not expect there to be any signifi cant change in the dynamics of the tire business here in the U.S. once the tariff s end.

Monthly surveyIndependent tire dealers were surveyed concern-

ing current business trends. Except for tire prices and costs, the results of the April 2012 survey are compared with those of April 2011.

Optimism stems from lower gas pricesAccording to our dealer survey, roughly 57% of

passenger tire dealers believe business will stay about the same over the next six months while 43% believe business will improve. As for truck tire dealers surveyed, 50% see business improving while the remaining 50% see business staying about the same. None of the surveyed dealers believe business will worsen. Optimism stems from lower gas costs and the belief that pent-up demand will be fi lled in the near future.

Passenger tire unit volumes were down 7% in April

According to dealer reports, on average, retail sales of new replacement passenger tires were down 7% when compared with April 2011. Consensus among the dealers we surveyed is that demand is soft and that consumers are buying the minimum needed to get by. Truck tire sales

remained strong and were up 4% in April. Retreaded tire sales increased 11% in April aft er increasing 5% last month.

Manufacturers were gett ing more aggressive on pricingIn comparing April 2012 with March 2012, average cost for

a size 215/60R16 major brand tire was fl at while the average price was up 1%. Th e average cost for a 215/60R16 private brand tire was up 3% while the selling price was up 1%.

Pricing seen as normal to aggressiveIn April 2012, 46% of passenger tire dealers saw pricing

as aggressive while another 31% saw it as normal. Th e remaining 23% saw it as fi rm. On the other hand, 50% of truck tire dealers saw pricing as normal while 38% saw it as very fi rm and 12% saw it as aggressive. Dealers indicated that major brand manufacturers were pricing more aggressively.

Inventories rise on weak demandTh e survey indicated that 50% of passenger tire dealers

believed inventories were too high, with 29% believing inventories were in line with current business levels. Th e

other 21% of surveyed dealers believed inventories were too low for current demand. Roughly 60% of truck tire dealers indicated inventories were in line with current business levels; the rest felt inventories were too high.

Service business continues to show growthDealers who provide automotive service reported that

28% of revenues, on average, were generated by service during April. Dealers indicated that service business grew by 4% in April 2012 vs. April 2011. ■

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

Short-term, look for a decline in Chinese tire imports

By Saul Ludwig

How dealers view near-term businessDealers DEC JAN FEB MAR(R) APR(P) APR(11)

Passenger tireWill improve 38% 46% 47% 40% 43% 56%Will worsen 6% 23% 6% 5% 0% 0%Will stay level 56% 31% 47% 55% 57% 44%

Truck tireWill improve 39% 60% 43% 59% 50% 80%Will worsen 8% 10% 0% 6% 0% 0%Will stay level 54% 30% 57% 35% 50% 20%R-Revised P-Preliminary

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MTD June 2012

S uccess breeds success. Th at is why 20 Groups are so inviting to retailers. Our industry is no exception. Dealer Strategic Planning Inc. (DSP) has formed

four 20 Groups made up of non-competing independent tire store owners in the United States and Canada. Its goal is to help them improve bott om line profi ts through idea sharing, fi nancial benchmarking and best practices. DSP and Modern Tire Dealer formed a strategic alliance in 2010 to bett er serve the tire industry by sharing resources.

Th is joint story, writt en with the help of Pat Brown, DSP’s vice president of marketing, is the fi rst in a series of dealer profi les about how to fi nd success in today’s challenging business environment.

Two of the three business owners interviewed are from the U.S.: Chris Tolleson of 49 Tire & Auto Service in Richland, Miss., and Scott Zimmerman of Scott y’s Tire & Automotive in New Orleans, La. Th e third is a Canadian: Dan Cantlon of OK Tire & Auto Service, an OK Tire Stores Inc. franchisee, in Fort St. John, B.C.

Chris Tolleson, 49 TireIt seemed inevitable that Chris Tolleson would end up in

the tire business. His father spent 41 years at Bridgestone and Chris learned the business from the family’s “dinner table talk.” Chris himself spent seven years with Bridge-stone, which he refers to as his “minor league training,” and then he was inspired to get into the business, opening 49 Tire in 1990.

His 12-bay operation is a thriving, fast-paced auto service shop, and Tolleson is the head “traffi c cop” coordinating his team to provide “knock your socks off ” customer service that keeps people coming back.

Tolleson, as many other business owners have, found his profi ts diminishing as pricing became more competitive, additional competition grew in his market area and the general economic downturn took a toll. While he was working hard “in” his business, he wasn’t working “on” his business.

In 2010, Tolleson was invited to join a group of 20 tire and auto service dealers who meet periodically to help each other overcome challenges and take advantage of opportunities. He is enthusiastic about the impact his membership has had on his business.

“I expect to increase my net profi t this year by 5 percent-age points!” he says. “I’ve never done that, and if I had not joined a 20 Group, my business would have shown a

loss and again gone to the bank to borrow money against the building.

“Th e 20 Group has kept me focused on making good choices about the bott om line. Th is was one of the best decisions I’ve ever made since owning my company!”

MTD: What’s diff erent about the 20 Group meetings? Tolleson: I’ve been to all kinds of manufacturer, distribu-

tor and supplier meetings, and we always take everything said with a grain of salt. Th ere is an agenda present at these meetings, and it’s not about the dealer.

At our 20 Group meetings, it’s all about us — the dealers. We share ideas, our frustrations, do problem-solving and it becomes a much more “true” solution to our problems. Th e meetings are genuine with proven ways to get bett er.MTD: What changes, if any, have you made that you

can say have improved your bott om line?Tolleson: I have certainly made some hard choices

pertaining to payroll since I joined the 20 Group. Norm Gaither (owner of DSP) says that payroll should not be higher than 45% of our gross margin or profi ts would suff er.

Money-making tips

3 dealers, 3 success storiesWhat do they have in common? Th ey’re all 20 Group members

“Next January, I will host my 20 Group meeting in Richland,” says Chris Tolleson. “I can’t wait for my group to see my business. I have borrowed ideas from many of their businesses to make my business shine.”

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MTD June 2012

Money-making tips

Th at was a shock to me. Mine was much higher!Aft er our fi rst meeting, I eliminated a service manager’s

position and I took that responsibility over. We also changed our pay system with our technicians from hourly to fl at rate. When you pay your techs based on the amount of work they do, it motivates them and makes them more effi cient. Th ese payroll moves went straight to the bott om line.MTD: At every meeting you agree to certain “actions” that

you’ve seen in the meeting which will help your business. Does this actually make you accountable to your group members? Is it helpful?Tolleson: My hand is fl ying over my action list, making

notes of the things I want to try. My goal is always to accomplish everything, but that’s not possible. I att empt all and conquer some.

I don’t want to come to the next meeting and admit that I didn’t make any changes, so yes, it does help with account-ability. And my business is bett er for it.MTD: What is your favorite part of your 20 Group meeting?Tolleson: You know, it’s like a bicycle. Every part is important

for the bicycle to work. Th at’s the same way with the 20 Group. I guess if I had to name one thing, it would be the fi nancial analysis. Th at has been life-changing for my business.

Next would be the executive session in which we control the topics that are important to us. I’ve learned so much from my peers... from rebuilding TPMS, comparing POS systems, employee manuals, social media — and the list goes on. And, of course the store visit where I “steal” ideas shamelessly.

Scott Zimmerman, Scott y’s Tire & AutomotiveFew people realize that businesses in New Orleans were hit

with a double whammy when Hurricane Katrina and the BP oil spill devastated this southern coastal region. Zimmerman understood the impact because he had to recover from them.

When Katrina roared out of the gulf, Zimmerman’s business was underwater — the fl ood waters were two-feet deep in his six-bay operation. Understandably, business was prett y good for a while as rebuilding the city stimulated business. Just when business was starting to stabilize, fi ve years aft er Katrina, the BP oil spill shatt ered the region.

“People were glued to the TV and business stopped,” he says. “Th e oil spill cost me nearly $200,000 in sales that year.”

(To read about how Zimmerman and a number of other

independent dealers survived in the aft ermath of Hurricane Katrina, visit www.moderntiredealer.com and read Managing Editor Lori Mavrigian’s fi rst-hand account in the “Features” channel.)

Zimmerman was invited to att end a fi nancial workshop sponsored by Bridgestone Americas Inc. Aft er absorbing the fi nancial benchmarks and goals, coincidentally presented by Gaither, he joined Gaither’s 20 Group in 2010. His gross profi t and net profi t have increased by 13 and 10 percentage points, respectively, since then.

MTD: You have made an amazing turnaround. What’s the secret?Zimmerman: Th e workshop was an intervention and my

20 Group meetings are like rehab for me. Every three months I go to get help. I knew I had a problem, but I didn’t know how to fi x it.

I have been in this business for 33 years and this is the best thing I have done. I only wish I had done it 33 years sooner.MTD: Give us an example of what you put into place aft er

a meeting.Zimmerman: Aft er att ending my fi rst meeting and learning

that my payroll should be no more than 45% gross profi t, I went back to my business and analyzed my service techs. I realized prett y quick that was my money, and I was wasting it every week. I had four techs and, to be honest, they weren’t effi cient, but I didn’t know how to measure effi ciency. I learned how others measured tire and service tech effi ciency, and then I knew I had to make some changes.

Aft er explaining the problem with my techs, two said they could step up and work harder so they kept their jobs. Th e other two were what we call “woodpeckers” and they had to go. At our meetings, we defi ne a “woodpecker” as an employee who is always poking holes in our plans for growth, profi tability or general workplace procedures. Th e end result is that I do more business with two techs than I did with the four and everyone is happier.MTD: Your group visited your store earlier this year. Since

you just rebuilt, what improvements did they suggest?Zimmerman: Yes, my store is new, but it mirrors my old

store. I had a goal a long time ago to have the cleanest, nicest tire store in the state and I am proud to say that it is a showplace.

I spend more time at my store than at my house, so I want my customers to feel comfortable, almost like they are visiting my home and waiting in my den for their work to be done.

Generally, when my group visits a host location, they pick the place apart and really drill down into the details. I didn’t get a lot of suggestions, but I did learn that my technicians looked sloppy and I have since replaced their grimy T-shirts with new uniforms. That just enhances my overall business appearance.

Scott Zimmerman, owner of Scotty’s Tire & Automotive in New Orleans, La., has had to weather the effects of both Hurricane Katrina and the BP gulf oil spill.

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MTD June 2012

Money-making tips

MTD: Your meetings are three to four months apart. Do you wait until the meet-ings to share with the group?Zimmerman: Th is is the awesome part.

We have a group email system set up so I can send a question to my 20 Group “fam-ily” any time, 24/7. And, within minutes, I will get a response, opinion or suggestion. It’s great.

When our group formed, we instantly bonded into a cohesive unit. We really care about each other’s business and want everyone to get bett er.MTD: Th ere are fees associated with

belonging to a group. How do you justify the cost?Zimmerman: I can’t aff ord not to do this.

Everybody doesn’t know everything. We learn from each other and, as I said before, look at my bott om line. Th is works.

Dan Cantlon, OK Tire & Auto ServiceOne has to travel prett y far north to fi nd

OK Tire in Fort St. John, B.C. Th is scenic town is just about 50 miles from the start of the Alaskan Highway.

Rich in oil drilling prosperity, Fort St. John has less than 20,000 in population but serves a large market due to the isolated tundra in northern British Columbia.

Dan Cantlon is an industry veteran with 30 years of experience in the tire and automotive arena. He believes every business owner should belong to a peer group.

“Th e numbers tell you your business,” he says. “It’s kind of sick, really, the amount of time that I spend on my numbers.” But his focus has paid off in improved — and record — profi tability.

“Aft er struggling to get my gross profi ts over 45%, I joined a 20 Group in 2008. Th e fi rst year in the group, my GP (gross profi ts) went up to 48.4% and in 2011 it hit 50.8%.”

MTD: You say that you focus on the numbers. What specifi cally do you track?Cantlon: Our group

shares financials each month so I can look at my numbers and the aver-age for our group. I also

can look at whoever is doing bett er than I am and see where we diff er. Th en I know what to aim for. I always compare my results to last year and last month, and then try to match my best month. I see where we are falling short, and then I work on it. It’s that simple, but it takes focus and determination. It’s more fun to do other things, but the numbers are the key.”MTD: Can you name one thing that you have taken away

from a 20 Group meeting that has impacted your business in a huge way?Cantlon: It’s a multitude of things.

At every meeting, I fi nd where my weaknesses are and then I learn from my peers how to work on them. For example, parts are my downfall. I don’t make enough money on parts and I’m always at or near the bott om of GP on parts when we compare numbers.

We also look at rankings of key fi nancial metrics. I am determined to move up on the parts GP ranking. I’ll just have to work harder.

I’m going to start using Norm Gaither’s handy parts mark-up matrix guide. If I can discipline my counter sales guys, my parts GP should be much bett er. It will take a while to reach our target of 50% parts GM (gross margin), but I’m confi dent we’ll get there.MTD: When you return from a

20 Group meeting, how do you get your staff excited about change?Cantlon: “Th at’s very tough. Most people don’t like change.

Th ey get complacent and comfortable. It’s my challenge to get my team to welcome and want change.

I usually pick two or three ideas that I think are workable. I pick them off one by one. I focus on the fi rst, and then when we get good results, we start on the next. I tell my employees that we are a team and I’m the coach, but a coach is only as good as his team.

Th e biggest motivator for change is to share the results (fi nancially) with my employees. If I make more money, they make more money. Th at’s when they get excited.

“Right now, we are working on bay effi ciency. I learned from the stats we share in our meetings that my bays are not as effi cient as they should be. In fact, I was all set to expand and build two more bays, but then I learned that my bays can be busier and handle more business if we work on our effi cien-cies. I don’t have to invest in more equipment and building.”MTD: Travel from Fort St. John has to be expensive. How

do you justify the cost to att end meetings in the U.S.?Cantlon: Th at easy. It is expensive and inconvenient to travel

so far away, but it’s easy to justify the cost when changes are made and my bott om line improves.MTD: Do you see vast diff erences in the way retailers in

Canada and U.S. approach the business?Cantlon: Th ere are far more similarities than diff erences.

I have observed that U.S. dealers seem to be more intent on gaining a bigger share of the market. Many U.S. dealers seem to be caught in the “loss leader mentality” — for example, off ering oil changes at $19.95. I just don’t understand why dealers want to “give it away.” I’d much rather do less work for more money. What’s wrong with that? ■

Jobber parts matrix

Cost Mark-up Gross profi t %

$0 - $10 x 3.25 = 69.2%

$10.01 - $20 x 2.76 = 63.6%

$20.01 - $75 x 2.25 = 55.5%

$75.01 - $150 x 2.00 = 50.0%

$150.01 - $750 x 1.85 = 46.0%

$750.01 - Over x 1.54 = 35.0%

Dealer parts matrix

Cost Mark-up Gross profi t %

$0 - $5 x 3.25 = 69.2%

$5.01 - $10 x 2.75 = 63.6%

$50.01 - $100 x 1.82 = 45.5%

$100.01 - $175 x 1.67 = 40.0%

$175.01 - Over x 1.54 = 35.0%

Dan Cantlon of OK Tire & Auto Service, an OK Tire Stores Inc. franchisee, in Fort St. John, B.C., believes in joining peer groups.

Source: Norm Gaither, DSP

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MTD June 2012

By Ann Neal

The road to a new and larger tire dealership was more like a bumpy roller coaster than a sleigh ride for Dan Boni Sr.

In the end, aft er a two-year struggle, he got the facility he wanted. Business has been growing extremely well since Boni Tire & Auto Service Inc. opened on Dec. 1, 2011.

But fi rst Boni had to navigate a surprising and unexpected array of potholes to business ownership put in his path by the local township zoning board.

Th e dreamLike all entrepreneurs, Boni has the ability to see what

others cannot. He saw potential in an abandoned paint store in an aging retail plaza in Flemington, a central New Jersey borough of about 4,500 residents.

Th e challenge was turning that space into the tire dealer-ship of his dreams.

It seemed an att ainable goal to Boni, who was not new to the tire business or even to owning and operating his own shop.

“I have loved to work on cars since I was very young. I

started out at an auto parts store before I had my driver’s license,” Boni says.

He eventually joined a tire dealership in New Jersey as a tire changer. He worked his way up to lead mechanic, held positions in the offi ce, fi nally becoming manager.

“I ran that store with passion, like it was my own,” Boni remembers. But success brought some unwelcome changes. “Aft er years there the company grew greatly and then what I feared happened: quotas and commissions.”

Boni began looking for something diff erent. He was soon off ered an opportunity to run a brand new Vespia’s Goodyear location close to his home. He could not pass it up, and the store quickly became Goodyear’s number one location in terms of revenue and volume in the area.

Success turned Boni’s thoughts to opening his own business. “I always had in the back of my mind that I work hard and customers like me, so I must be able to do this myself and reap the benefi ts of my hard work.”

In 1999, he started his own store in East Amwell, N.J. “It was three bays, one tech and myself. We did great for 11 years but the shop wasn’t big enough. So I started my search for a new one,” Boni says.

Aft er months of searching, Boni found the perfect loca-

Building a tire store

Rough road to a bigger dealershipOwners detail diffi cult birth of Boni Tire and Auto Service

(From left to right): Dan Boni Jr., technician at Boni Tire & Auto Service Inc.; technicians Rob Mackay and Max Ja-son; co-owners Lori and Dan Boni Sr.; and technician Jay Cole. Not pictured is son and technician Brandon Boni.

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MTD June 2012


tion. Situated near a row of car dealerships in Flemington, N.J., it had the visibility he was looking for.

Th e new building totaled nearly 7,000 square feet, almost three times bigger than his 2,500-square-foot shop. With the larger space, he could buy greater volumes of tires and other products, enabling him to negotiate for bett er pricing he could pass on to his customers.

Struggle beginsTh e owner of the plaza told him there

should be no problem with zoning because the building used to be his paint store.

Flemington is located in the center of Raritan Township. Th e township zoning department gave him a form to complete, charged him $35 and told him he would need to appear before the zoning board to ask for a waiver. Th at didn’t sound diffi cult.

“Boy, was I wrong. I returned with the form and a check for $35. Th e woman took it, smiled and said someone would contact me for a hearing date.”

A few days later, he got the phone call. Boni was told he needed to hire an att orney and have an architect provide drawings because his business was a corporation. Th e board also wanted him to contact 45 people near the property to advise them of his plans.

Th at was the start of requirements from the Raritan Township zoning board that would eventually include costs for an at-torney, architect, engineer, sound study, U.S. Environmental Protection Agency (EPA) study, fees and permits.

“At the fi rst meeting, they told me my plans were not what they wanted and now I need to get an engineer, too. So off I went to spend some more build-out/start-up capital. Th ree zoning board meetings, two years and $82,000 later I got my waiver,” says Boni, who had initially budgeted $10,000 for zoning fees and permits.

But he could not start construction yet. He said he had to wait and see if any of his neighbors were going to fi ght his approval. And as he expected, there were neighbors who opposed his plans.

Th e objections centered around noise and appearance. Boni addressed their concerns with an $8,000 sound study de-termining that the noise from the highway would be louder than noise from the shop. Th e plaza owner proposed a plan to use trees and fencing to shield the building

from the neighbors’ view while serving as additional sound buff ers. Also, the plaza owner promised to improve the landscap-ing, sidewalks, curbing and dumpster area for aesthetic purposes.

It took six months. “Finally, my build-out was a go,” he says.

Construction proceeded slowly due to the township’s permit process. Th e building was completed within four months. But the township put the brakes on the opening.

“Now I need to move the handicap bars in the bathroom three inches higher. I wanted them to give me fi nal approval, and I would fix it. Nope. Three weeks later they showed up to give me the fi nal inspection,” Dan recalls.

Th e township’s snail’s pace for scheduling inspections and making decisions was a constant frustration. But Boni kept his focus, his can-do att itude and his patience. Th e two-year process gave him ample time to design the ideal building.

Th ere is 7,000 square feet of open space. Th e shop has six bays measuring 34 feet by 96 feet. Th e warehouse can accommodate two more cars when necessary. Boni car-ries Mastercraft , Michelin, BFGoodrich, Uniroyal, Continental, General, Goodyear, Kelly, Kumho, Yokohama, Toyo, Bridges-tone, Pirelli, Dunlop, Nokian and Nexen passenger and light truck tires and Carlisle for the farm equipment he services.

Th e dealership also is a NAPA Car Care Center. And his full-service shop provides auto repairs and preventative maintenance for every major vehicle system.

The rest of the building is designed around his customers. Th e offi ce is 25 feet by 40 feet and features a “beautiful” waiting room, Boni says proudly.

“Th ere’s a widescreen television with cable and DVD player, two separate work stations with free Wi-Fi, an X-Box for kid-dies of all ages, and complimentary coff ee and beverages. The tropically themed bathroom is large, clean, and inviting,” he adds.

Internet posts about his business in-dicate his customers are thrilled. Wrote one: “The showroom is as warm and comfortable as the att itude you receive from the staff . Th e coff ee center is clean and well stocked; the atmosphere makes you want to return for more repairs. It’s like being at home. An inviting place to have your vehicle serviced, or new tires put on the autos. Glad that Dan is back with

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MTD June 2012


fi ne deals, great services, and an outstanding place to sit and wait.”

Happy endingBoni spent about half a million

dollars in renovations and new equipment, including an alignment machine.

Aft er receiving approval to begin construction in February 2011, he had to vacate the building he leased for his dealership in East Amwell. Although the renovation itself took just four months, the township’s slow permit process meant six more months before he could open. He had no shop and no income for 10 months.

“What I don’t understand is why these township people treat you so badly,” Boni says. “Th ey go to the public and say we don’t want big-box stores. We want small businesses, then they beat small business into submission. Don’t they understand only big-box stores have the money to go toe-to-toe with them? Th en they wonder why so many [small businesses] fail. It’s probably not the fault of the businesses, it’s that they have exhausted their start-up capital before they even open the door.”

His suggestions for other tire dealers renovating an existing space? “When hiring an att orney, ask and ask again if he is good at small business law. Second, fi nd an architect that you feel comfortable with. I hired one who knew nothing about commercial build-outs and then took my money and gave me nothing I could use. I found an engineer who helped me

One obstacle the Boni’s encountered in building the store was the need to pay for a noise study to prove the six service bays would not bother the dealership’s neighbors.

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MTD June 2012


through the process; he was a lifesaver.” Th e ultimate credit goes to his family.

“I thank my wife, Lori, and sons Dan Jr. and Brandon for helping me through the struggles,” he says. Lori is co-owner of the shop. Dan Jr. and Brandon work as technicians.

Th e dealership sells brands of tires and off ers a full range of automotive services such as alignments, brake work, shocks and struts, air conditioning and much more. It is part of the NAPA Auto Care program.

“I would think long and hard if I would do this again, but I learned a lot about how diffi cult it is to start a new business from scratch,” says Boni. “I have a new respect for someone who has. Also, now I know why these large companies buy up the litt le guys: We do all the hard work; they just come in with money and buy us.”

He adds, “If you’re going to do this, be prepared for the unexpected. In my case it

worked out. Go into other shops and talk to the owners and ask what they know.”

Ask owners like Boni, whose experi-ence proves it is possible to overcome the obstacles to establishing a business. Which is exactly what all entrepreneurs do, challenge aft er challenge, opportunity aft er opportunity, day aft er day.

“I’m fi nally happy to be in business. My old customers are returning, and I am bringing in lots of new ones, too. I hired fi ve technicians and an offi ce administra-tor,” says Boni.

In December 2011, his fi rst month of operations, revenues were over $100,000, double his expectations. Boni says now there is no looking back. “My future is bright. Dan, Brandon and my wife are with me and I hope in a few years to let go of the reins and let my sons run the busi-ness. I will be able to work a couple days a week, travel and have fun with life.” ■

Ask now, save laterWords of advice for building a new tire store

Dan Boni Sr., owner of Boni Tire & Auto Service Inc. in Flemington, N.J., fi led for a zoning waiver to convert an abandoned paint store in a retail plaza to a tire shop in December 2009. The process took two years. To meet the require-ments of the township zoning board, Boni needed the services of an attorney, architect and engineer.

Finding qualifi ed professionals with the appropriate expertise is diffi cult. “Help yourself by asking tons of questions even if you think you’re being overly de-manding. It will save you from wasting a lot of money in the long run,” says Boni.

If he did it over again, Boni would pose a variety of questions to potential attorneys, architects and engineers he was considering:

• Do the attorney and architect know the rules and regulations related to com-mercial businesses and codes?

• Does the attorney specialize in business real estate?• Does the attorney deal regularly with the township where the property or

building is located? • Does the architect have professional connections with an engineer if one

is needed?• Do the architect and engineer have up-to-date knowledge of commercial

codes and build-out procedures?• What is the policy of the architect and engineer regarding additional charges

if the zoning board rejects their proposals?• Do your attorney, architect and engineer personally know any of the people

serving on planning and zoning boards?• What is the payment schedule for the attorney, architect and engineer’s

fees as the work is being done? Arrange to hold the last payment until fi nal plans are approved.

Finally, he suggests getting quotes from at least three construction compa-nies. “Do not take the lowest bid because that may cost you more in the long run. Get references.”

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ALSO IN CTDWide load:Wide-base truck tires are evolving . . . 42

Truck tire market share:Medium/heavy brand shares . . . 45

Body of work:Service truck body materials . . . 46

Commercially Viable . . . 48

By Bob Bissler

Truck owners and fl eet maintenance directors know it all too well. Fuel is the single largest expense related to trucking. What’s one way for fl eets to

save on fuel? Th ey can turn to tire makers for help, thanks to their development of fuel-effi cient tires.

“Fuel-effi cient commercial tire products have spread across many segments,” said Rick Phillips, Yokohama Tire Corp.’s director of Commercial Sales. “With the exception of some on/off -road applications or other severe applications, fuel effi ciency is actually becoming the norm. In fact, the U.S. Environmental Protection Agency (EPA), through their SmartWay program, has identifi ed commercial products that meet a standard of fuel effi ciency.”

With low rolling resistance and SmartWay certifi cation as priorities in truck tire design, we asked manufacturers the following question: What are the current trends in this market segment? We also asked them to describe the current market for truck tires with low rolling resistance technology. Here are their answers.

Alliance Tire Americas Inc.“When we talk about fuel

economy, the price of fuel ob-viously plays a huge role,” said John Hull, national truck tire sales manager, Alliance Tire Americas. “Th e trade-off with low-rolling resistance tread compounds is that you have to sacrifi ce some run-out miles to get bett er fuel effi ciency. So the math works out based on the cost of fuel — diesel at $2 a gallon probably won’t work, but the increased fuel economy when diesel is $4 a gallon is well worth the reduction in run mileage.

“Most prevalent is the grow-ing customer awareness of the impact of rolling resistance on fuel economy. More and more owner-operators and fl eet managers are asking what the rolling resistance numbers are when considering a tire purchase.

“As far as the SmartWay certifi cation program, it’s great to have it — we have steer, trailer and drive tires that are

SmartWay certifi ed — but it’s only really important so far in California and to long-haul fl eets that regularly haul in and out of California. Th ere’s also a segment of the market that opt to save money by buying a top-of-the-line import brand like Aeolus that delivers fuel-economy features, whether or not it has been SmartWay certifi ed.”

Bridgestone Commercial Solutions Group“Th e current market for truck tires is very strong,” said

Guy Walenga, director, engineering, Commercial Products and Technologies, Bridgestone Commercial Solutions Group. “OEM is slowing slightly but still doing well and replacement sales are strong. Retreading has remained strong even when the trucking industry was slow from 2008 to 2010.

“Th e current trend is fuel economy. From the voluntary EPA SmartWay program, to the California Air Resource Board mandating the use of EPA SmartWay verifi ed low rolling resistance tires on SmartWay type vehicles, to the more recently introduced Greenhouse Gas Emissions and Medium- and Heavy-Duty Truck Fuel Economy rule, truck OEMs, tire manufacturers and fl eets of all sizes are focused on fuel economy.

“More and more fl eets are trying fuel effi cient truck tires and fuel effi cient retreads. More tire manufacturers are introducing models of low rolling resistance tires to improve truck fuel economy.

“Bridgestone just introduced its Ecopia line-up, our most fuel effi cient steer, drive, and trailer designs in standard sizes; R283 Ecopia steer, M710 Ecopia drive, and the R197 Ecopia trailer. And in wide-base the Greatec M835 Ecopia drive and Greatec R135 Ecopia trailer.”

Continental Tire the Americas LLCContinental Tire the

Americas LLC recently added its Eco Plus com-pounding to its HSL2 steer tire. Eco Plus is the basis of Continental’s low roll-ing resistance, fuel saving medium radial truck tires.

Th e company’s Commer-cial Vehicle Tire business unit is converting the entire portfolio of HSL2 products to the Eco Plus line. The

Commercial Tire Dealer™

Roll modelsTire manufacturers continue to help fl eets and

truckers get the most fuel savings possible

The Aeolus HN808 features a consistent footprint and strong traction on wet or dry pavement. It is avail-able in sizes 11R22.5, 11R24.5, 285/75R24.5 and 295/75R22.5.



MTD June 2012

Low rolling resistance truck tires

previous generation HSL2 will be phased out, with all sizes changed to HSL2 Eco Plus by the end of summer 2012, said Brand Manager Libor Heger.

“Even wear is crucial, if a fl eet is looking for optimal steer tire perfor-mance. With the latest generation of low rolling resistance compounding, the new HSL2 Eco Plus off ers not only SmartWay verifi ed fuel saving performance, but also advanced wear characteristics,” Heger said.

Th e HSL2 Eco Plus is available now in NAFTA markets, in sizes 11R22.5, 275/80R22.5, 11R24.5, and 285/75R24.5. Th ese sizes off er a 19/32-inch tread depth and load ranges G and H.

Cooper Tire & Rubber Co.Cooper Tire & Rubber Co. off ers

a number of commercial truck tires with low rolling resistance SmartWay-verifi ed technologies. All Roadmas-ter low rolling resistance tires are designed with the Energy Max fuel effi cient casing and feature low roll-ing resistance tread compound, low heat build-up base compound, and high tensile steel belt construction.

Th e long haul drive Roadmaster RM851em is a closed shoulder drive tire that helps to provide a balance of long, even wear and traction.

Th e Roadmaster RM180em, a long haul steer tire, features a shoulder decoupling groove and siping to help minimize irregular wear in slow wearing conditions.

Th e Roadmaster RM871em is a long haul trailer tire which has wide shoulder ribs to resist the side scrubbing typically seen in trailer positions.

Double Coin Tire/China Manu-facturers Alliance LLC

“Th e early 2012 truck-bus radial (TBR) market has been soft in seg-ments but consistent in others,” said Aaron Murphy, vice president, Double Coin Tire/China Manufac-turers Alliance (CMA) LLC. “Due to many factors, including the lack of construction, global economic woes and freight tonnage weakening, it seems that the market is not as vibrant as it was one year ago.

“As is being mandated by certain states as well as the Federal govern-

ment, rolling resistance reduction in tires is the uniform trend we see in all market segments. Rolling resistance in tires is just one of the components in the EPA’s SmartWay Program that mandates the abilities to move vehicles and freight/cargo to and from destinations with less energy consumption and pollution.

“Double Coin created the ‘Optigreen Series’ of products to respond to these new market requirements. Th ese tires off er rolling resistance coeffi cients that exceed the requirements of SmartWay verifi cations and also now carry the Optigreen seven-year limited warranty. Th is trend, which is no longer a trend but a mandated level of performance, will continue to be at the forefront of tire performance and development.”

GITI Tire (USA) Ltd.In the segment of commercial

tires, GITI says it is at the vanguard of manufacturers that comply with regulations created to reduce the emission of toxic greenhouse gases. For example, the GSL213 FS (for steer axles), GT669+ FS (for drive axles) and GT979 FS (for trailers) truck tires have received the Smart-Way verifi cation from the EPA under the latest Rolling Resistance Coef-fi cient requirements. GITI says the SmartWay verifi cation implies that these products contribute to reduced emissions and provide an estimated fuel savings of 3% or greater against market leading on-highway com-mercial truck tires.

Th e GSL213 FS long haul steer tire features advanced technol-ogy and patt ern design for outstanding overall performance, resistance to irregular wear and extended mileage. Th e extra wide and deep tread design provides outstanding tread life. It is available in sizes 11R22.5, 11R24.5, 295/75R22.5 and 285/75R24.5.

Goodyear Tire & Rubber Co.“Th e market for wide-base truck

tires is relatively small, representing about 1.5% of the overall truck tire market,” said Donn Kramer, director of product marketing, Goodyear Commercial Tire Systems. “We believe the wide-base segment has a bright future, as does the market for low rolling resistance truck tires, which will remain a key ‘want’ of fl eets as they strive to manage consistently elevated fuel costs.

“In the low rolling resistance segment, fleets continue to spec products that will help reduce their vehicles’ fuel consumption and lower their overall cost-per-mile. An ever-growing number of fl eets are turning

The Roadmaster RM851em low rolling resistance tire is de-signed with Cooper’s Energy Max fuel-effi -cient casing.

The Continental HSL2 Eco Plus was engi-neered specifi cally for balanced pressure dis-tribution and vectored forces within the tire’s footprint.

The GSL213 FS long haul steer tire features advanced technol-ogy and pattern for resistance to irregular wear and extended mileage.

The Goodyear G305 AT LHD Fuel Max truck tire contains Goodyear’s Fuel Max Technology and is available in three sizes — 11R22.5, 285/75R24.5 and 295/75R22.5.

The Double Coin FR605 contains a fi ve-rib tread design, extensive siping and side shoulder decou-pler grooves. It also contains special tread compounds.

38


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MTD June 2012

Low rolling resistance truck tires

to tires that contain Goodyear’s Fuel Max Technology. “Fuel Max helps improve fuel effi ciency and lower operat-

ing costs. Each of the Fuel Max truck tires from Goodyear incorporates cool-running compounds and constructions. Tires include the G399 LHS Fuel Max, the G305 AT LHD Fuel Max and the G316 LHT Fuel Max.”

Hankook Tire America Corp.Hankook currently markets six TBR tires in the U.S. that

have been approved for SmartWay verifi cation based on their rolling resistance test data. Th ose tires are the: AL07+ (long haul steer); AL11 (premium long haul steer); AH24 (premium long haul/all position); DL11 (premium long haul drive); Z35A (drive position/super traction); and the TL01 (long

haul trailer).

Kumho Tire U.S.A. Inc. “We see several trends evolving due

to the search for bett er fuel economy,” said Rick Brennan, vice president of marketing, Kumho Tire U.S.A. Inc. “Th e number of tires available with SmartWay certifi cation is growing, but look for the SmartWay criteria to constantly evolve, with tighter standards being implemented peri-odically. We are hearing the current standards may be reduced by 5% in the near future.

“New fuel effi cient tire models are being introduced, some with lower tread depth and new compounding to lower rolling resistance further. We are seeing fl eets opt for lower

tread depth drive tires over the deep tread models for over the road use as well.

“Kumho has several tires with SmartWay certifi cation all marketed with an “e” aft er the tire name (example KLS02e), and we are constantly working on new technology to push our fuel effi ciency higher.

“Even if the SmartWay standards are reduced, we already meet new requirements.”

Michelin North America Inc.“As the industry leader in low rolling resistance, the Michelin

X One XDA Energy is positioned at the forefront of fuel savings, helping fl eets meet new regulations and reduce their carbon footprint, thus contributing to a ‘greener’ environment,” said Paul Johnston, business segment manager, Michelin Americas Truck Tires.

“Upcoming EPA/National Highway Traffi c Safety Admin-istration (NHTSA) regulations regarding greenhouse gases (GHG) and fuel effi ciency targets will generate a greater demand for low rolling resistance tires and in particular wide-base singles. Not only will the wide-base singles provide a solution to reductions in GHGs and fuel consumption, but will also help improve the fl eet’s productivity.”

Th e X One XDA Energy is available in size 445/50R22.5.

Toyo Tire U.S.A. Corp.Toyo Tires has three low-rolling-

resistance commercial tire products for over-the-road trucks. Th ey are the M137 Premium High Performance Steer, M657 Drive Axle and the M157 Premium Free-Rolling Axle tire. All three products are manufactured us-ing Toyo Tires’ e-balance technology that delivers improved fuel economy while fi ghting irregular wear.

“With respect to low rolling resis-tance products, we believe strongly this is clearly a growth segment of the market,” said Gary Hendricks, truck tire sales manager for Toyo Tire USA Corp. “We currently of-fer LRR products in steer, drive, and trailer positions with ongoing study to increase our off erings in the future. Th is segment of the market has too many benefi ts for fl eets and independent owner/operators to think that this trend will ebb in future.”

Yokohama Tire Corp.“Th e market continues to show

interest in low rolling resistance truck tires as fl eets are looking at every possible way to reduce their cost of operation,” said Rick Phillips, Yoko-hama director of commercial sales.

“In the right application there are defi nitely advantages, and if you look at OEM projections they are certainly a product for the future in the transportation industry.

“Th e most benefi t we are seeing now is in the weight savings for fl eets that tend to haul heavy, and whose area of service is more or less regional.” ■

SmartWay-certifi edA growing number of tire makers are joining the EPA’s SmartWay program

Tires on the Environmental Protection Agency’s (EPA) list of SmartWay-verifi ed commercial truck tires have been determined to reduce NOx emissions and fuel use by 3% or more. That fi gure is relative to the best-selling new tires for line-haul trucks, when used on all fi ve axles on long-haul Class 8 trucks.

The EPA says low rolling resistance tires can be used with lower-weight aluminum wheels to further improve fuel savings.

Check out the list of the EPA’s SmartWay-verifi ed truck tires on www.moderntiredealer.com.

The Toyo M657 features a 28/32-inch tread depth with a multi-pitch groove design. It is G-rated and available in four sizes: 11R22.5, 295/75R22.5, 11R24.5 and 285/75R24.5.

The Kumho KLS02e line haul tire features a fi ve-rib design with a decoupler groove, and a dual-tread radius. The fi ve-rib, multi-sipe design im-proves wet handling performance. Yokohoma says the

703ZL has a one-inch-deep tread for the lowest rolling resistance in its category. It is avail-able in sizes 11R22.5, 295/75R22.5, 11R24.5 and 285/75R24.5.

40



Quik-Link: 800-687-1557 ext. 17123



MTD June 2012

By Bob Bissler

Despite some challenges due to their design, some tire makers are still extolling the virtues of wide-base tires: Th ey are easier to check for infl ation,

and easier to maintain. Th ey off er signifi cant reductions in rolling resistance due to advanced compounding, plus lower weight from two less beads, sidewalls and rim assemblies. Th is translates directly into both fuel and maintenance savings for cost-conscious fl eets and owner-operators.

“Th e traditional wide-base tires (typically 65 series and 425/65R22.5) are enjoying healthy growth among heavy-duty trucks for con-struction, ready mix service,” said Wil-liam Estupinan, vice president of Techni-cal Service for GITI Tire (USA) Ltd.

“The wide-base tires are designed to replace a dual set in drive and trail-er axles. Th e most popular sizes are 445/50R22.5 and 455/55R22.5. Th e fi rst one re-places LP duals and the second one replaces stan-dard duals.”

Estupinan said the wide-base tire segment is among the fastest grow-ing niche markets in the tire industry. Th is is in both replacement and OE as an option by truck manufac-turers. “Th e two main factors that explain this trend are lower rolling resistance, which has a great impact in fuel economy (6% to 10% savings), and lowering overall weight of the vehicle by as much as 1,000 or 1,300 pounds when used in place of duals on drive and trailer positions,” Estupinan explained.

“Th e weight diff erence depends on the wheels being made of steel or aluminum.”

Estupinan said the challenges of wide-base tires

include serviceability on the road, lower retreadability and lower tread life. GITI is working on these challenges and is currently developing a family of wide-base tires.

It’s a good time for wide-base tires to make a mark in the commercial truck tire market. According to the Rub-ber Manufacturers Association’s (RMA) 2012 Factbook, in the domestic replacement market, truck and bus tire shipments were up 4.4% last year (from 15.8 million in 2010 to 16.5 million in 2011).

Original equipment truck tire shipments were up 53.1% last year over 2010, to 4.9 million. Overall production in 2011 was up 15.4% for truck tires.

All for one, one for all?So is switching to wide-base the right move for everyone?“Th ere is a place for wide-base, fuel-effi cient tires, but

they are not a fi t for every trucking operation,” said John Hull, national truck tire sales manager, Alliance Tire Americas. “Th e best fi t for wide-base tires is for those hauls that weight out before they cube out, like fuel haulers.

Hull says the fuel economy from wide-base tires is a proven advantage, but the conversion cost is steep. Th is is especially true for individual owner-operators.

“ T h a t ’s w hy I think the future of wide-base lies in OE f itment — when an owner-operator can make the shift to wide-base at the point of purchase of his truck, I think we’ll see a marked increase in usage,” Hull explained.

“Fuel continues to grow as a very im-portant top-of-mind for fleets,” said Clif Armstrong, director of marketing, Com-m e r c i a l Ve h i c l e Tires – the Ameri-cas, Continental Tire the Americas LLC. “Wide-base tires are a part of this fuel ef-

Wide-base tires

Wide loadWide-base truck tires are evolving from a segment trend to a growing market

The Continental HDL2 Eco Plus wide single drive tire features a 27/32-inch tread depth, a closed shoulder and a three-dimensional sipe in the center of each tread block that allows fl exibility. It is available in size 445/50R22.5.

The FT125 from CMA/Double Coin is engineered with an advanced tread compound and a low-profi le design to maximize durability. It has a tread depth of 16/32-inch and maximum carrying capacity of 10,300 lbs. The tire is available in size 445/50R22.5.

42



fi cient equation. Simply put, fl eets will see bett er fuel economy with wide-base tires. However, there are many factors that a fl eet must consider when looking at wide-base tires. Servic-ing tire dealers will need to be knowledgeable on the latest fuel saving technologies in order to partner with their fl eet customers.”

While there appears to be much room for growth in the wide-base truck tire market, the segment still only represents a fraction of the entire market.

“The market for wide-base truck tires is relatively small, representing about 1.5% of the overall truck tire market,” said Donn Kramer, director of product marketing, Goodyear Commercial Tire Systems.

“However, demand for wide-base tires continues to increase, leading to double-digit growth in wide-base’s share of the total market.

“We believe the wide-base segment has a bright future, as does the market for low rolling resistance truck tires, which will

remain a key ‘want’ of fl eets as they strive to manage consistently elevated fuel costs.”

Wide advantagesWide-base tires have many advantages for

long-haul trucking fl eets. Th ese include weight savings, improved fuel effi ciency and improved ride comfort. But a wider base means a larger tread area — and an increased risk of punctures.

“Last year, Goodyear addressed that issue by introducing two wide-base tires for long-haul applications that contain our exclusive DuraSeal Technology, the G392 SSD and the G394 SST,” said Kramer.

“DuraSeal, which is built into a tire, instantly seals punctures of up to 1/4-inch in the repair-able area of a tire’s tread. Goodyear’s inclusion of DuraSeal in these new wide-base products was a fi rst for the industry, and we believe it’s a game-changer.”

“Th e use of wide-base tires for over the road use as a replacement of dual tires is growing, especially in trailer use,” said Rick Brennan, vice president of marketing, Kumho Tire U.S.A. Inc. “Th is is due to lower weight and lower rolling resistance. We are seeing a big increase of use as OE on trailers, dual tires still dominate but wide-base use is growing. Initial concerns over

Available in size 445/50R22.5, the Goodyear G392 SSD contains Good-year’s DuraSeal Technology that instantly seals punctures of up to 1/4-inch in diameter in the repairable tread area of a tire. It also contains Goodyear’s low rolling resistance Fuel Max Technology and deep, 25/32-inch tread depth.

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MTD June 2012

Wide-base tires

durability and down time from a single tire failure have proven to not be an issue. Tire durability is more than adequate and with automatic tire pressure systems now prevalent, downtime is not a reality. As a result many more fl eets are looking to reduce fuel costs, making wide-base use att ractive.”

Brennan said Kumho has developed wide-base tires for over-the-road use. However, they have not been placed in mass production yet due to the high cost of transporting them overseas. Fewer tires fi tt ing in shipping containers is an issue.

“Th e New Generation Wide Base Singles (NGWBS) were launched with the Mi-chelin X One tire just over 10 years ago and demand has really taken off over the past three to four years,” said Paul Johnston, business segment manager, Michelin Americas Truck Tires. “Th is has been driven primarily by the high cost of fuel, the need for improved freight effi ciencies, the anticipated impact of regulations and the concern for the environment. Th e Michelin X One XDA Energy has led the way with regards to meeting each of these demands.”

“We think that the market is trending upward to include more and more wide-base products,” said Gary Hendricks, truck tire sales manager for Toyo Tire USA Corp. “Currently we at Toyo do

not present a wide-base off ering in our current product line up, however we do believe that this segment is an area of growth for us. We are currently evaluat-ing performance characteristics of our wide-base test products at selected survey fl eets nationally.”

“Th e market continues to show interest in wide-base tires as fl eets are looking at every possible way to reduce their cost of operation,” said Rick Phillips, direc-tor of commercial sales, Yokohama Tire Corp. “In the right application there are defi nitely advantages, and if you look at OEM projections they are certainly a product for the future in the transporta-tion industry.”

Phillips said the biggest benefi t of wide-base tires is the weight savings, especially for fl eets that tend to haul heavy loads in a regional area of service.

He said there is a fuel savings advantage, but when compared to a set of fuel-effi cient duals in the same type of application, the actual fi nancial impact at the fuel pump can be minimal.

“Th is segment will continue to grow,” Phillips predicted. “Right now, there are still a few trade-off s, such as original mileage and retreadability. But as the technology improves the product’s per-formance and wide-base becomes more widely available, you will see more fl eets converting.” ■

The Michelin X One XDA Energy fea-tures a deep 24/32-inch tread depth, advanced technology compounding, and a wide, low-profi le design. It is available in size 445/50R22.5, load range L.

Yokohama says the RY407 wide-base, size 445/50R22.5, offers excellent fuel effi ciency as well as a weight savings potential for fl eets. It features an ad-vanced profi le, high-tech compounds and a zero-degree mid-belt that distributes the load evenly.

Quik-Link: 800-687-1557 ext. 1712544




A lmost all signs through the fi rst and second quar-ters of 2012 point to a strong domestic truck tire market throughout the year. Th at is true for both

the replacement and original equipment levels. Commercial vehicle orders were healthy in January and

February. Th ey soft ened in March and April. However, the overall outlook for Class 6, 7 and 8 trucks is positive, according to Kenny Vieth, president and senior analyst at Americas Commercial Transportation Research Co. LLC.

“Th e data that we use to predict demand remain healthy: Th e overall economy and, in particular, the manufacturing sector, continue to grow, trucker profi ts are healthy and used truck prices remain close to record levels.”

Th e Rubber Manufacturers Association predicts replace-ment truck tire shipments will be up 2% this year versus last year, or 400,000 units. Original equipment shipments are expected to be up close to 12% “as the commercial sector continues to strengthen, reflecting economic growth forecasts.”

Last year, the RMA says OE shipments increased by ap-proximately 1.7 million units, “refl ecting pent-up demand for commercial trucks and trailers concurrent with a 4.1% increase in the Industrial Production Index.” Th at bodes well for not only replacement sales, but also the availability of retreadable casings.

Th ere were close to 461,000 new registrations for Class 3 through 8 commercial vehicles in 2011, an increase of 23.3% compared to 2010, according to R.L. Polk & Co.’s “Quarterly Commercial Vehicle Report” from December 2011.

“One of the issues that will need to be watched at the start of the 2012 calendar year is the patt ern of monthly new registrations to see if they take on the patt ern of a continuing market expansion or if they begin to show a more normal patt ern that would be indicative of a normal year.”

Market shareNearing the halfway point in the year, there does not

appear to be signifi cant change in the replacement truck tire market shares that appeared in the 2012 Modern Tire Dealer Facts Issue.

Th e “Big Th ree” brands remain Michelin, Bridgestone and Goodyear, in that order (see top chart). Some of the bigger brand names in “Others” are Aeolus, Road One, Westlake, Triangle, Samson, Doublestar, GITI, Primewell, Primex, Roadlux and Sailun.

However, Bridgestone Americas Inc. is more dominant if you combine the market share of its Bridgestone and Firestone brands (see bott om chart).

Two brands to watch in 2012 are Continental and Yoko-

hama. At the end of 2011, Continental Tire the Americas LLC and Yokohama Tire Corp. offi cially severed their ties with Toyo Tire Holdings of America Inc. in the GTY (“G” for General, “T” for Toyo and “Y” for Yokohama) joint venture facility in Mount Vernon, Ill. Th at gives Continental and Yokohama another 280,000 tires to split between themselves.

Also, Continental, which introduced its ContiTread retread products in 2009, signed its first ContiTread licensee in the U.S. last September: King Tire Service Inc. in Bluefi eld, W. Va. ■

2011 U.S. REPLACEMENTMEDIUM/HEAVY TRUCK

TIRE BRAND SHARES(Based on 16.8 million units)

Brand 2011Michelin 18.0%Bridgestone 17.0%Goodyear 14.0%Yokohama 9.0%Firestone 7.5%Continental 5.5%General 4.0%Double Coin 3.5%Hankook 3.0%Dunlop 2.5%

Brand 2011BFGoodrich 2.0%Dynatrac 2.0%Hercules 2.0%Kelly 2.0%Roadmaster 2.0%Toyo 2.0%Gladiator 1.0%Kumho 1.0%Sumitomo 1.0%Others 3.0%

Source: Modern Tire Dealer

TRUCK TIRE BRANDSHARE BY COMPANY

Market share

Truck tire market shareExpect replacement and OE sales to be up this year

Others 27.5%

Continental 9.5%

Goodyear 18.5%

Michelin 20%

Bridgestone 24.5%



MTD June 2012

Service trucks

By Bob Bissler

Aluminum, fi berglass or steel? When it comes to which material is bett er for service truck bodies, size matt ers.

“We actually use all three materials in the tire service truck market,” said Tom Formanek, regional sales manager at Stellar Industries Inc. “Aluminum and fi berglass are primarily used on road service and commercial fl eet service trucks. We also use aluminum on farm service trucks. With OTR trucks, primarily steel is being used.”

“Tire service trucks in OTR service tend to face the most rugged work environments, so the durability and strength of steel helps to ensure a longer more productive service life,” said Bill Burns, regional sales manager at Iowa Mold Tooling Co. “Steel also off ers a lower cost, which is another benefi t for the price-conscious tire dealer.”

The downside to service bodies manu-factured with steel is that they are heavier than those manufactured from aluminum. For cost, fi berglass is a more expensive option, but the benefi ts may make it worth the higher price.

“If you have a low-impact application and plan to keep the truck 10 to 12 years, the savings you get in fuel economy and body life cycle will easily off set the higher up-front cost of the fi berglass body,” said Bob Johnson, director of fl eet relations at the National Truck Equipment Association (NTEA).

“If you have a rugged-use application and plan to keep the truck only three to four years — and it’s not in an environment where there are a lot of road salt or corrosion issues — I’m not sure I would want to pay the extra money to get the fi berglass body. Like everything else, it’s about matching the

Body of workService truck body material depends on the truck’s operating conditions and the fl eet’s overall objectives Tire service trucks in OTR service face

rugged work environments and need the durability and strength of steel bodies, however additional weight is a drawback. (Pictured is the Stellar 9000-RS OTR series truck.)

46



[material] technology with the application.”

“Fiberglass service bodies had several drawbacks that ultimately impacted their demise in the OTR industry,” said Burns. “Th e most signifi -cant drawback for fi berglass was that it became very ex-pensive. In fact, its cost began to off set the cost concerns

originally associated with aluminum service bodies, which ultimately led to the adoption of aluminum as the

industry standard for one-ton tire service trucks.”Steel bodies for road service and commercial fl eet service

trucks were used in the past, but that has evolved into aluminum. Factors such as weight savings, corrosion resistance, longevity and ease of transferring from one chassis to another make steel impractical in those applications.

“Aluminum off ers a superior strength-to-weight ratio to steel bodies which allows for a sturdy body, yet light enough to off er a substantial amount of tires and tools,” said Tim Davison, product manager, bodies and cranes, Stellar Industries Inc.

“Aluminum bodies also off er much greater corrosion resistance than steel bodies. In most cases, an aluminum tire service body can be refurbished and mounted from one chassis to another.

Steel bodies suff er from road salt corrosion, and also calcium chloride corrosion in farm tire repair.”

However, Davison said steel bodies still have their place. “When looking at an OTR tire repair application, steel

bodies still rule,” he said. “Steel bodies are more fl exible and superior to aluminum in withstanding rough roads and off -road conditions.”

Davison said fi berglass bodies are an option in tire service bodies only on very small chassis. “Most customers will use this style of body when they only have to haul one or two tires and need to fi x a fl at on the interstate or do some other form of light fl eet service,” said Davison.

Fiberglass has its drawbacks. Fiberglass service trucks cannot be overloaded, and they cannot be used on rough roads, or off -road. Although incredibly light, Davison said fi berglass bodies do not take hard jarring and rough terrain well.

“Aluminum service truck bodies help to keep GVW down, which helps to reduce restrictions on where the trucks can legally and safely operate,” said Burns. “Service truck bodies manufactured with aluminum also off er bett er corrosion protection. Th e non-corrosive nature of aluminum makes it an ideal service body material for agricultural applications where calcium is prevalent.”

Burns said another benefi t of aluminum is that it can be molded to just about any form.

Th e ease of forming aluminum enables much more fl ex-ibility in the design and build phase of services truck bodies manufactured with it. ■

Aluminum offers a better strength-to-weight ratio than steel bodies, as well as better corrosion resistance. (Pictured is the Stellar 1302 all-aluminum service truck.)

Corrosion-resistant treatments for steel bodiesOne of the downsides of steel, particu-larly in the Northern U.S. and coastal areas, is its susceptibility to corrosion. However, modern steel truck bodies are often treated with corrosion-resistant coatings that make them better able to stand up to the elements. These treat-ments include:

Electrocoat (e-coat): A coating method that uses electrical current to deposit paint onto a part or assembled product.

Powder coating: Type of coating ap-plied as a free-fl owing, dry powder. The primary difference between a conven-tional liquid paint and a powder coating is the latter does not require a solvent to keep the binder and fi ller parts in a liquid suspension form. The coating is typically applied electrostatically, then cured under heat to allow it to fl ow and form a “skin.” Powder coating generally is used to create a hard fi nish tougher than conventional paint.

Phosphating: A process in which an acid attacks the steel and re-deposits a material that is a combination of the metal substrate (and other metals, such as zinc) with phosphate. This process creates a surface tightly adherent to the base metal with more surface area, pro-vides improved corrosion inhibition, and helps the powder coating stick better. Phosphating provides a good base coat-ing so the fi nished part has increased usable life.

Quik-Link: 800-687-1557 ext. 17126




Quik-Link: 800-687-1557 ext. 17127



MTD June 2012

I n my previous article, I ex-plained the importance of optimizing your website for

mobile devices. In 2012, for the fi rst time ever, more searches will be performed on mobile devices than on PCs. It’s all part of the social media revolution.

In this article, I want to explore the world of social media man-agement. Th at’s right, not just social media, but how to manage it. In order to properly deal with social media, you need to look at it from your customer’s perspective. To set the stage, I quote Seth Godin, renowned author, marketing and social media expert.

In a recent blog by Godin, he talks about the importance of people (or customers) wanting to fi t in. Th is is relevant and crucial to understanding the importance of embrac-ing social media in your business. Godin exclaimed, “A signifi cant part of marketing to strangers is the work of appearing to be the dominant choice, the safe choice, the one that’s going to get picked by everyone else... Th at’s why being the ‘presumed front-runner’ is so vitally important.”

You want to become the dominant choice, the safe

choice.

You want your business to become the

dominant choice, the one that is going to get picked by everyone else. It doesn’t happen by accident; you need to make it happen. Th e good news is you can. You can manage your perception in the social marketplace. In fact, it’s not as diffi cult as you might think. Th e social media arena is yours for the taking. To be the dominant choice, you only have to be bett er than your competition. No one said how

much bett er, just bett er. Let’s break down the social media mountain into manageable pieces.

Social brandingFirst let’s explore the area of social branding. Th is refers

to all the social websites out there that you can appear on, whether you want to or not. Th ey include sites such as:

• Google Places• Bing Places• Yahoo Local• YP.com• Yelp• Foursquare• Angie’s List

• Insider Pages• MapQuest• DexKnows• Merchant Circle• CitySearch• And others

Th ese websites provide information to prospective customers about your company. Th ey may include your company address, phone number, hours of operation, and the like. In addition, they may contain reviews that have been posted by your existing customers. Th ese sites usually allow you to post business information including pictures.

It’s not uncommon to fi nd incorrect information about your company unless you manage it. Most of these websites also are available for you to update at no charge. Some of these websites, like Foursquare, provide “social amusement” for its participants while providing a service at the same time. New websites are being created all the time and it’s a continuous process for you to keep up with them all.

Th ere is one thing for certain; your customers are post-ing real-life experiences about doing business with you all the time. You may not personally visit these websites or even believe in them, but you need to realize that your customers do. Don’t underestimate what Godin said about picking the perceived leader. Your customers can make you the perceived leader or they can do signifi cant damage to your reputation and your brand.

Take controlNot only do you need to manage your presence on these

websites, you need to manage what your customers are saying about you. Th ere are several things that you can do to “help” your customers fi ll out reviews on these websites. Naturally, you want them to post positive experiences. Th ese positive reviews will make you the safe choice, the dominant choice. Don’t leave it to chance.

So the message here is to make sure you are managing your business on these websites. It’s perfectly OK to outsource the management of your social brand management. In fact, I highly recommend it. Th is stuff is constantly changing. Leave the management to those that are in the business of keeping up with these rapidly changing websites. It’s

Business insight

Social media managementHow to maintain your position as dominant choice

By Wayne Croswell

50


Quik-Link: 800-687-1557 ext. 17128



MTD June 2012

Business insight

much more cost-eff ective and you will get bett er results than trying to do this on your own. Don’t kid yourself, I have talked to hundreds of tire dealers who start this process, do a reasonably eff ective job for a very short time, and then lose interest or time to manage it properly.

Social brand management is like sweep-ing the fl oor. It’s something you have to do each and every day. No matt er how many times you sweep it, the dirt comes back. We need to think of social brand management in the same light. It’s something you have to tend to every day.

Social networking allows you to be present in the places your customers are spending time.

Rich source of customersIn addition to social branding, another

area called social networking includes websites such as Twitt er, LinkedIn and Facebook. You may consider these as nothing more than a distraction or a waste of time.

However, these websites are another source rich in prospective customers. Consider the fact that Facebook has over

800 million active users. If it were a country, it would be the third largest.

In March, Roger McManus wrote an article in MTD about becoming a “twit-tering dealer.” He hit the nail square on the head with respect to the opportunities that exist within the tweets and Facebook posts. Th e thing about Twitt er is that it’s an open community. You can view anyone’s comments and replying to them is an accepted practice. Facebook has a litt le more privacy, but creating and maintain-ing a company Facebook page gives your users a common place to communicate with respect to your business and their experiences. Once again, these websites require constant att ention. You know... sweeping the fl oor.

Th ere are methods to get your customers to participate in these websites and promote your business. Here again, I recommend bringing in the experts to help you. Th ey can get you the results that you want and they can do it cost-eff ectively.

Another leading-edge social networking tool is the use of text messaging to create a social or loyalty club for your customers. Companies such as MobiDitt o.com provide these powerful networking tools. Tire dealers around the country are embracing these practices in their business and are gett ing very positive results.

Th e world of social media, imaging, branding, and networking is here to stay. You can become the dominant choice in your space. It’s a function of how serious you consider this opportunity and how you go about becoming the “presumed front runner.” ■

Wayne Croswell is CEO and president of WECnology LLC (www.wecnology.com) and is a “complimentary technology advisor” for independent tire dealers. He can be reached at (603) 249-5530 or [email protected].

Social brand management is like sweeping the fl oor. It’s something you

have to do each and every day. No matter how many times you sweep it,

the dirt comes back.

Social networking sites such as Twitter are another source for gaining custom-ers. Use Twitter to review and respond to consumers’ critiques.

52


http://www.wecnology.com

http://www.wecnology.com


Quik-Link: 800-687-1557 ext. 17129



MTD June 2012

By Greg Smith

W hen Balkrishna Industries Ltd., (BKT) de-cided they wanted to hold a “day out” for its dealers, they turned the event into a four-day

trip to Italy.Th e company took more than 100 dealer personnel

representing over 30 distributors from the Americas to Italy to thank them for their partnership. Th e company also held similar trips for their dealers in other parts of the world.

BKT wanted to highlight its commitment to the quality of its products and showcase the performance of their Mega Tractor tires under testing at the ISMA test track in Treviglio, just outside Milan, Italy. Th e test facility adheres to EU standards for independent testing of agricultural equipment of all types.

Th e highlights of the test track were slippage testing under in-fi eld conditions, an on-road slalom and high-

speed evaluations plus laboratory testing of the products. One of the tests imprints a tractor tire’s footprint — a test developed by and exclusive to BKT.

BKT’s Vice Chairman and Managing Director Arvind Poddar was in att endance at the event. He sat down with MTD to discuss his company’s growth. Th e biggest chal-lenge for the company is “to keep growing, adding new lines and maintaining quality.

“We must keep our quality while growth is happening... it cannot drop,” insists Poddar.

Poddar says BKT tires must be one of the top quality products in the market. “We focus on pre-sale, that is, fi nding the right tire for the application, then post-sale... helping the customer properly maintain the tire and handling any problems for them.

“Our objective is to be number one in the agricultural market,” says Poddar. “We want to be only in off -highway tires.” He views the agricultural and OTR segments of

Focus on industry

BKT nurtures off -road tire sales Goal is 10% of the global market for agricultural tires

There’s no better way to gather data on a tractor tire’s performance than run it through the paces in the fi eld. Here, BKT’s AgriMax tractor tires performance is carefully measured during a slippage test at the ISMA test track.

54



the tire industry to be areas of continued growth, despite the current economy.

“We are very, very confi dent that the agricultural market will grow throughout the world. We don’t see demand coming down,” he says. Poddar believes the same holds true for the OTR worldwide market.

He said the company’s sales are currently at $611 million and they intend to reach $1.36 billion in 2014. Th is would represent 10% of the global market for agricultural tires.

Poddar says the company’s goal is to achieve a yearly 35% growth rate (in metric tons). Poddar views the overall growth rate in the markets to be 6% to 8%, so he knows his company must take market share from the bigger players.

BKT plans to achieve this goal by emphasizing a quality product at an aff ordable price.

Th e company also is constantly growing its product mix, with around 2,000 SKUs in its line at the current time.

Rami Bitran, general manager, BKT (USA), says it is very important for BKT to be viewed as a “one-stop-shop” for dealers. Th is means the company must understand what tires are going to be needed in each market segment. BKT has the ability to bring on a new tire size or design in three months.

BKT’s world-wide sales are broken down as follows: 50% Europe, 25% Americas, 10% India with the remainder coming from the rest of the world.

Poddar noted that the company’s product mix is currently 66% agricultural, 15% construction, 15% other construc-tion/mining with the rest in lawn and garden tires.

By 2014, he wants the mix to be at 53% agricultural, 22% mining, 20% construction, and the remainder in lawn and garden products. Th e reason for the

shift is Poddar believes the demand for industrial/mining tires will outpace that of agricultural tires during this time frame.

Overall, BKT has a 15% share of the world’s original equip-ment market, although that number is only 4% in the U.S. Th e company’s sales are currently 70% bias and 30% radial, but the plans are to be at 50/50 by 2014.

The biggest concern for BKT is increasing its capacity to meet the demand and achieve its growth goals. Toward this end, the company is spending $365 million in its new factory, as well as continuing to invest $50 million per year in its existing plants.

As reported in the May issue of MTD, the company is in the start-up stage of its fourth factory. Th e factory is in Bhuj, India, and will eventually have a capacity of 90,000 metric tons. Upon completion, this will increase BKT’s total capac-ity by 80%. Th e new plant is currently producing solid tires and will begin pneumatic tire production in the next three months, with current total planned capacity coming on-line in the next 24 months. When completed, BKT’s four plants will have a capacity of 300,000 metric tons.

Th e plant will be producing all of the product lines that BKT produces, says Poddar.

According to Poddar, the facility is located on enough acreage to eas-ily expand as demand dictates it. Th e company is depending on this factory, plus on-going expansions at its existing factories to loosen up its current supply constraints.

BKT is part of the Siyaram-Poddar Group, a diversifi ed Indian industrial conglomerate with sales in excess of $800 million. Poddar wants the group to grow to $1.8 billion by 2014. Th e Group is involved in textiles, garments, chemicals, real estate, paper and tires. ■

Dealers and BKT executives spent a full day at the ISMA test track in Treviglio, Italy, watching numerous testing procedures on the company’s tractor tires. There was no shortage of volunteers to climb on the tractors for a test drive.

BKT’s Vice Chairman Arvind Poddar (left) presents a gift to Sanjay Kumar Verma, the Consul General of India to Milan, Italy, during a dinner reception.

An ISMA worker removes a tire footprint mold. This particular farm tire mold was developed by BKT engineers and is used exclusively by the company.



MTD June 2012

Counter intelligence

Old adagesTeaching an old dog new tricks... and much more!

Old adages are full of truth and wisdom, t h o u g h m ea n i ng s

have changed as times have changed. It may be fun to stop and consider some quotes and how they apply to our lives and business today.

It’s been said, “You can’t teach an old dog new tricks,” and “You can’t judge a book by its cover,” and “Where there’s smoke, there’s fi re.”

The ideas behind these old adages are simple and straightforward; the idea behind old dogs is it’s impos-sible, or almost impossible, to change people’s habits or traits or mind set. Th e book-cover adage is a metaphor which means you shouldn’t prejudge the worth or value of something by its outward appearance alone. Smoke and fi re tells us not to judge or decide something without having all the facts; in other words, if you don’t have all the facts, you may reach an unwarranted conclusion. I saw these adages at work this week, and I thought I would apply them in this article.

Applied adagesI had a wonderful visit with a tire dealer in Southern

California. We discussed competition, tire pricing, the Internet, customer service, our new digital world and, of course, the good ol’ days. Th is dealer has seen and experienced a lot of changes over the years; aft er all, a lot has changed in 78 years.

At fi rst glance, you might consider him an old dog, but remember, you can’t judge a book by its cover.

Th is business owner is an old dog in terms of years, but he understands old adages. He is continuing to gather information to assist him in making decisions about a change of direction for his business. He is transitioning his marketing to adapt to our digital world. For several years, he and I have been saying the world is going digital;

well, this week we decided the world has gone digital. Aft er some careful investigation, he thought to make a

move into the digital world via Yelp. My friend runs a very customer-friendly operation. His customers rave about his friendly, no-pressure approach, so it’s no surprise that 100% of his Yelp reviews were positive. He’s a 5-Star Dealer with comments like, “Th is place is awesome,” and “Excel-lent service all around,” and “I will defi nitely go to them

again in the future.” Not only are his customers posting about excellent service, they are also commenting about fair prices and inexpensive alignments along with careful, personalized att ention. With the help of Yelp, anyone who looks online for tires can review what other customers are saying about a company. Who wouldn’t want to buy from a local tire dealer who has been in business for 40 years and off ers great prices and great service?

Th e main reasons I decided to write this article: I hear a lot of negative comments about negative comments, and I hear tire dealers complaining about the Internet and the negative reviews they are receiving from customers.

Granted, there are some customers you just can’t please, and, of course, misdiagnosis and mistakes made by sales and service staff can add up to problems and negative experiences to both the customer and your shop.

Two old adages, “Word-of-mouth is the best advertis-ing,” and “Unhappy customers will tell friends and family about negative experiences,” are very true.

Word-of-mouth has gone digitalWell, word-of-mouth has gone digital, good or bad.

For the dealers doing the complaining, I suggest you get pro-active; nobody is going to turn off the Internet! Our friendly, old-dog tire dealer chose Yelp because it played to his strengths: good service and fair prices. I don’t hear dealers who are receiving good reviews complaining.

I have to be honest, as I listen to some dealers complain-ing and telling their stories, I’m frankly not surprised by the negative reviews. Th ey need to step back and give themselves an honest review. It’s not like it used to be, unhappy customers telling 10 people by word-of-mouth; now, they post negative reviews online for the world to read.

Keep learning new tricks If there is any truth in the old adage “You can’t teach an

old dog new tricks,” then some dealers are in trouble. My friend, the old dog, doesn’t need to change his habits or traits or mind set; he hasn’t jumped to conclusions without having the facts. He’s a wise old dog; he knew his reviews would be good and support his business.

During our conversation, I noticed he was asking ques-tions about my iPad. He had made-up his mind he was going to buy one, and aft er our two-hour conversation, he said he was going to buy one that evening! He didn’t make the decision right then, he’d been thinking about it! ■

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].

By Wayne Williams

56




By Bob Bissler

Goodyear Tire & Rubber Co. recently conducted a ride-and-drive at Pacifi c Raceways motorsports park in Kent, Wash.

Th ere, tire dealers and members of the media spent a rainy Washington day learning all about the new Goodyear Eagle F1 Asymmetric All-Season’s wet handling characteristics.

Th e race-inspired product, which off ers strong han-dling and all-season traction, was introduced at the 2012 Goodyear Dealer Conference in January. It will be available starting in July.

“We apply breakthrough technologies to many tires in our Eagle lineup,” said Jonathan Lee, Goodyear brand general manager. “Fortunately, experts — from third-party product testers to our extensive retail network to everyday consumers — recognize the product leadership and help keep Goodyear Eagles out front.”

The Eagle F1 Asymmetric All-Season is an all-new design, inspired by the complementary summer tire, the Goodyear Eagle F1 Asymmetric 2.

Its asymmetric tread patt ern is based on the summer tire, but the Eagle F1 Asymmetric All-Season features a Dry Handling Zone on the outside shoulder for enhanced handling and grip, and an All-Season Zone on the inside shoulder for increased water evacuation. Th e tire also off ers:

• Specialized Tread Compound with Functionalized Polymers — for enhanced performance characteristics, such as wet traction and dry handling;

• TredLock Technology — with microgrooves that provide biting edges for enhanced wet traction;

• Traction Teeth — providing further biting edges for traction in rain and snow.

Th e Eagle F1 Asymmetric All-Season carries a 45,000-mile tread life limited warranty, will be available with W- and Y-speed ratings, and will be off ered in 36 diff erent size combinations. ■

Focus on industry

Put to the test: Goodyear Eagle F1Race-inspired tire off ers all-season traction

Goodyear put its new Eagle F1 Asymmetric through the paces at Pacifi c Raceways road racing facility in Kent, Wash.

Targeting balanced performance: capturing the ‘sweet spot’ Tim Lovell, Goodyear’s technical project manager for consumer tires, said that when Goodyear develops a new tire, the tire technology team comes up with performance targets.

In the case of the Eagle F1 Asymmetric, those tar-gets included strength in the areas of tread wear, dry handling, wet handling, wet traction, dry traction, snow traction, ice stopping, ride comfort and noise.

“We aggressively started this project about a year ago,” Lovell explained. “Since it’s an all-season tire, we wanted to test its snow performance. I was able to leverage a lot of dif-ferent resources across the globe.”

Lovell said his team went to Good-year’s San Angelo, Texas, proving grounds for wet and dry handling and ride traction testing. At the com-

pany’s Akron, Ohio, proving grounds the team did a signifi cant amount of snow testing.

Lovell said to achieve balanced performance with tread wear, his team came up with the asymmetric pattern. To maintain the handling, they looked at the profi le of a racing slick. There’s actually a little higher tire stiffness in the shoulder than there is in the sidewall of a racing tire.

“We said we need all-season performance so we can’t have that level of stiffness, but we can capture that profi le. That puts in the sweet spot for handling and steer-ing response.”

The tread area of the Goodyear Eagle F1 Asymmetric fea-tures TredLock Technology with microgrooves for enhanced wet traction, and Traction Teeth for snow traction.



MTD June 2012

SUBJECT VEHICLE: 2010 Ford Focus.RELEARN PROCEDURE? Yes, directions follow.SPECIAL TOOLS NEEDED? Yes, TPMS Activation Tool (P/N 204-363).

Th e tire pressure monitoring system (TPMS) on the 2010 Ford Focus monitors the air pressure in the four road tires with wheel-mounted tire pressure sensors.

Th e sensors transmit radio frequency signals to the smart junction box (SJB) every 60 seconds when the vehicle speed exceeds 20 mph. If the vehicle is stationary for more than 30 minutes, the sensor will enter into a sleep mode and stop transmitt ing.

Each tire pressure sensor transmission is compared against a low-pressure limit (the pressure listed on the vehicle certifi cation label minus 25%, about 6 psi to 9 psi). If it is determined that the tire pressure has fallen below this limit, the SJB sends a message to the instru-ment cluster, which then illuminates the low pressure

warning indicator and displays the appropriate message.To remove an old sensor, follow these steps.

1. Remove the wheel and tire. NOTE: Th e valve stem is connected to the TPMS sensor. Do not pull the valve stem from the wheel, or damage to the sensor will occur.

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

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

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

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

b. Carefully and fi rmly pull the sensor straight down and separate it from the valve stem. NOTE: A new valve stem must be installed whenever a new tire or wheel is installed.

TPMS

Focal point: 2010 Ford FocusA smart junction box sends low pressure messages to the instrument cluster

58



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

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

To install a new sensor, follow the next step. NOTE: To prevent TPMS sensor and valve stem damage, the valve stem must be installed onto the TPMS sensor and then installed into the wheel as an assembly.

1. Install a new valve stem onto the TPMS sensor, tighten-ing the valve stem-to-TPMS sensor screw to 13 in.-lbs. NOTE: it is important to pull the valve stem and TPMS sensor assembly through the wheel rim hole in a direction parallel to the valve stem hole axis. If the assembly is pulled through at an angle, damage to the valve stem and sensor assembly may occur.

Basic trainingNow it is time to train the new sensor.

NOTE: TPMS Activation Tool (P/N 204-363) must be used.

1. Turn the ignition switch to the OFF position, then press and release the brake pedal.

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

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

position. NOTE: Th e horn will sound

once and the tire pressure warning light will fl ash if train mode has been entered successfully.

5. Turn the ignition switch from the OFF position to the RUN position three times, ending in the RUN position. Do not wait more than one minute between each key cycle. NOTE: It may take up to six seconds to activate a tire pressure sensor. During this time, the activation tool must remain against the sidewall of the tire.

6. Place TPMS Activation Tool (204-363) on the left front tire sidewall at the tire valve stem. Press the test butt on on the activation tool. Th e horn will sound briefl y to indicate that the tire pressure sensor has been recognized by the SJB. NOTE: Do not wait more than two minutes between training each sensor. If the wait time is more than two minutes, the SJB will stop and the training procedure must be repeated from the beginning.

7. Within two minutes aft er the horn sounds, place the activation tool on the right front tire sidewall 180 degrees from the valve stem for strap and cradle type sensors, or at the valve stem for valve stem-mounted sensors. Repeat the procedure for the right rear and left rear tires (see Figure 2).

8. When the tire training procedure is complete, the message center (if equipped) will display “Tire Train-ing Complete.” For vehicles not equipped with a message center, successful completion of the training procedure will be verifi ed by turning the ignition switch to the OFF position without the horn sounding. If the horn sounds twice when the ignition is turned off , the training procedure was not successful. ■

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

Figure 2

Figure 1

Quik-Link: 800-687-1557 ext. 17130



http://www.mitchell1.com


Quik-Link: 800-687-1557 ext. 17131




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MTD June 2012

Your turn

Learn to ‘just say yes,’ dealer advises Concerning Bob Ulrich’s blog on www.moderntiredealer.com

titled “Walmart’s size infl uences its customers, competitors and suppliers,” a dealer responded:

Dear Editor:As one of the many pioneers of Tires Plus, where we grew

from three stores to approximately 250, one of the challenges we faced early on was competition from the Wholesale Clubs and Walmarts of the world.

We held nightly meetings thinking of ways to retain market share as well as gain.

We came up with some prett y solid ideas through these meetings, such as:

• Don’t panic. We accepted the fact that they will be a player and it is our job to impress our customers (guests) with superior service.

• We threw away appointment books. Time is very important to people, and we adopted a “Just Say Yes” program. Walmart is not a get-it-done-right-now kind of business. Th ey can’t even repair a broken stud. If you can’t do the “Just Say Yes” program, you need to either add staff or improve your current staff . I can’t emphasize this any more other than saying do it. Change is always hard but as our leader Tom Gegax drilled into us, “If nothing changes, nothing changes.”

• We advertise four tires along with a free alignment check in an hour or less. Th is can be done with the proper mind set. Alignment equipment today allows you to do a check in less than fi ve minutes. Walmart does not do alignments.

• Turn negatives into positives. I, as well as my team, will never allow a guest to walk out of our store unhappy. Be prepared to be a good listener. When they get what they want to get off their chest, it’s a great time to say, “Let’s solve this problem.” You can then go to work fi nding a resolution. As soon as they hear you say you are willing to help solve the problem, the tension will evaporate very quickly.

• Surround yourself with talent. Shop every mall you can. I once walked into the shoe department at a mall 25 years ago and found a salesperson who still works for Tires Plus and is a manager of a $3 million-a-year-plus store. Ironically, this particular store is right across the street from a Walmart.

• Th e words “can’t” or “I don’t know” should never be used in your store. Always move forward. Stay away from using that type of language with your customers and your employees.

Overall, look at these big box stores as an opportunity to improve your current situation. We are willing to sell tires at cost if we have to. Th e key is to get them in YOUR door. Remember, you can still make money on balancing, stems, tire disposal and brake jobs. Walmart can’t replace serpentine belts. You can, and you will. All of these ideas came from many people in our organization.

Be prepared for your tire margins to take a hit. Be OK with that, because if you “Just say yes,” your parts and labor will skyrocket.

Mark Lessin, OwnerTires Plus

Detroit Lakes, Minn.

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.

A NAC for quotable quotesMembers of our National Advisory Coun-cil speak out:

“OTR and truck tire business is and has been substantial. We are waiting for PCR supply to get better, and then I’m sure a record pace will be on the move!”

Marty Gilkes, General ManagerJee Wholesale Tire LLC

Houston, Texas

“Supply is still a problem with pas-senger, light truck, medium truck, off-the-road, as well as farm tires.”

Gary Van Blaricom, President & CEOEastern Iowa Tire Inc.

Davenport, Iowa

“Gasoline and diesel prices are com-ing down enough to have a positive effect on mileage driven, which should help business.”

Bill Anders, PresidentBurlington Tire Service Inc.

Burlington, N.C.

“Due to the additional distributors in our market, pricing is all over the place. Now we see distributors are selling tires below their replacement costs. No one wins.

“Customers seem to be replacing one tire at a time.

“Times are tough.”Jeff Cohen, Co-owner

Traction Wholesale CenterBensalem, Pa.

“There is tremendous uncertainty in the market due to fuel costs, questions about the health care bill, and this being an election year.”

Jon Shields, Branch ManagerCarroll Tire North Atlanta - C33

Marietta, Ga.

“The economy is not as good as the media makes it out to be!”

Jerry Reygaert, OwnerReys Auto & Tire

Shelby Township, Mich.

“Sales are a little better, but grosses are harder to hold.”

Mark Rhodes, PresidentPlaza Tire Service Inc.

Cape Girardeau, Mo.

66


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Modern Tire Dealer June 2012

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