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©Entire Contents Copyright 2019 by Crain Communications Inc. All rights reserved. January 21, 2019 THE TIRE DEALER’S NEWSPAPER SINCE 1983 $79 per year, $4 per copy Trump proposing law to revamp tariff imposition By Miles Moore Senior Washington Reporter

WASHINGTON — Industry of cials are waiting to see the details of a Trump administration draft bill that would change substantially the way tariffs are imposed on foreign goods. The “United States Reciprocal Trade Act” would give the president power to instigate line-by-line tariff increases on goods imported by countries that he determines have raised tariff or non-tariff barriers on U.S. products. President Trump was expected to propose the Michelin employees mount and legislation Jan. 29 during his State of the Union balance race tires track side. Michelin North America photo address. However, House Speaker Nancy Pelosi’s Jan. 16 letter to President Trump, proposing that the State of the Union address be postponed until after the partial government shutdown has ended, It’s oval time for tire makers puts this in doubt. Of cials of associations representing the tire Michelin, Goodyear put products to test in big early-season races industry and auto aftermarket said they had heard about the draft bill, but had not yet polled their By Nancy Dunham “The heart of why we’re competing with to motorsports. When motorsport tires fail, members for their opinions. Tire Business Correspondent the International Motor Sports Association that’s international news. Problems that rac- However, they agreed that the tariffs placed (IMSA) series, which is essentially endurance ers have had with tires at major racing events by the Trump administration last year on im- DAYTONA BEACH, Fla. — Long before NBC racing series, is because it drives technology on catch the attention of millions around the ported steel, imported aluminum and some $200 Sports clinched the deal to televise live our consumer products,” Mr. Payne said. “That world. See Trade, page 23 coverage of the 57th Rolex 24 from Day- means we produce better tires for the street. That type of failure can create a major pub- tona International Speedway on Jan. 26-27, “You have to do that because you need lic relations challenge that impacts any aspect Kenneth Payne and his team planned, test- a durable tire in structure, and it has to be of the tire business, especially consumer sales. ed and prepped to ensure the approximately very reliable and consistent in performance. In short, the stakes for manufacturers of Big O dealer buys 8 13,000 tires Michelin provides for that race It has to have a very good wear life, which motorsport tires go way beyond the races. are as close to perfect as possible. feeds back into consistent performance.” Michelin's journey to producing up to NTB stores in Texas Mr. Payne, motorsports technical direc- In short, supplying tires to motorsport events 35,000 tires for the 2019 IMSA season tor of Michelin North America Inc., and his challenges engineers and other tire specialists began as soon as IMSA announced in Sep- SAN ANTONIO — Big O Tires franchisee Chris Mon- team aren’t alone. His competitors at Good- to perfect tire performance that directly trans- tember 2017 that Michelin North America teverde has acquired eight NTB Tire & Service year, Bridgestone Americas Inc. and other lates to enhanced safety and fuel economy and would be the designated race tire suppli- Center stores in Texas from TBC Corp. and is con- manufacturers that supply to motorsports highlights the brand. It also creates plentiful er for the IMSA WeatherTech SportsCar verting them to Big O signage. are providing the same level of scrutiny to marketing and sales opportunities. Championship and its two major challenge Mr. Monteverde, a Big O Tires franchisee since the racing tires they provide. But there’s a downside to supplying tires See Michelin , page 19 2004, also owns and operates 19 Big O Tires locations in California. The deal covers NASCAR/ARCA integration raises tire issue six NTB stores in the San Antonio metro area and two By Bruce Davis Americas’ General brand and Goodyear, re- in the Corpus Christi mar- Tire Business Staff spectively. NASCAR reportedly is negotiating ket, TBC said. a solution to the two-supplier dilemma. Financial terms of the deal DOVER, Del. — NASCAR plans to integrate its While the two series for late-model stock cars were not disclosed. TBC con- second-tier late-model stock-car series — the will continue to operate as separate entities for tinues to operate 100 NTB existing K&N Pro Series and the ARCA Rac- the 2019 season, they will operate under a new stores in Texas, primarily in ing Series it purchased in 2018 — starting in competition framework in 2020 with a model the Dallas and Houston met- 2020, a move that will give drivers the oppor- designed to preserve both series’ historic short- ro markets. Monteverde tunity to compete for four championships. track lineage, NASCAR said. “The opportunity to expand our portfolio with- The plan also likely will mean a change in The new format will give drivers the oppor- in the Big O brand and have a chance to do busi- tire suppliers for either the ARCA or K&N se- tunity to compete for four championships — ness in the great state of Texas was one that we ries, currently supplied by Continental Tire the See ARCA, page 19 didn’t think twice about,” Mr. Monteverde said. “We’re excited about the future and eager to continue exceeding customer expectations in Cali- fornia as we make a name for ourselves in Texas.” SEMA-backed legislation still in holding pattern ...... 14 Hercules to supply tires, support for off-road racing team ...... 16 Mr. Monteverde was honored twice last year by IndyCar series is renamed with Cooper as presenting sponsor ...... 14 A look at who competes in what ...... 16 Big O Tires franchisor TBC and the International Hankook to supply tires for open-wheel circuits ...... 15 Pirelli extends GT racing deals ...... 18 See Acquisition, page 23 INSIDE DEPARTMENTS Automotive Service ...... 8-9 Robbins develops sealing system for Titan’s partners in Russian JV seeking Classifieds ...... 21 Editorials ...... 6 retread market ...... 3 to exit the venture ...... 4 On the Move ...... 20 Goodyear blimp to become honorary Strong December sales push U.S. vehicle Get up-to-date information at the member of College Football Hall ...... 3 sales above 17M units in 2018...... 5 Tire Business website http://www.tirebusiness.com ALL NEW

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VISIT CONTINENTALTIRE.COM FOR COMPLETE DETAILS. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, January 21, 2019 • 3 Robbins develops sealing system for retread market By Don Detore will save time in the shop for the real rings used with traditional, sin- Tire Business Staff placement process,” Mr. Sandberg gle-piece rubber sealing rings. said recently. “In addition to that, “Installing the Accu-Fit sealing MUSCLE SHOALS, Ala. — Robbins they will save land ll because they ring base and insert is extremely easy L.L.C. has developed a rubber seal- will have less rubber waste that they with minimal effort,” Mr. Sandberg ing ring system for the retread mar- need to land ll. So they are saving said. ket that company of cials say will the environment and land ll costs.” Robbins, which has manufactured allow shops to save money Mr. Sandberg added envelopes, curing tubes, retreading and time. that the system reduces accessories and rubber compounds The Accu-Fit Sealing the risk of a potential mis- since it was founded in 1921, said it Goodyear photo Goodyear Ring System comes in two cure, “which can happen expects the insert to outperform ex- The Goodyear Blimp at the Orange Bowl in Miami on Jan. 1, 1962. parts: the sealing ring base if they don’t replace the isting sealing rings in terms of num- and the sealing ring insert. sealing ring in time and ber of cures. When wear-indicator By having a separate base allow the bead to go at bands show replacement is suggest- College Hall to honor and insert, company offi- and potentially slipping ed, the user replaces the insert with cials said, users will save off the tire.” a new insert. Mr. Sandberg said an money by needing to re- According to the com- insert should last between 400 and place only the actual part of Sandberg pany, the patent-pending 600 cures. blimp with induction the sealing ring that is worn. insert is easy to install on envelopes, Users save money not only be- Hugo Sandberg, director of sales easy to handle and is out tted with cause the inserts are priced lower, AKRON — The National Football Foun- The Goodyear Blimp was the rst ve- and marketing for Robbins, a sub- a wear indicator that shows the user Mr. Sandberg said, but also will dation (NFF) and College Football hicle to provide aerial coverage of a ma- sidiary of Malmo, Sweden-based when to replace the insert. have saved money versus buying Hall of Fame will induct the Goodyear jor sports event and the rst to deliver Hexpol A.B., said the system could The product, manufactured at two regular rings. Blimp as an honorary member of the high de nition live video to a national cut users’ expenses in this eld by Robbins’ facility in Muscle Shoals, Testing for the sealing-ring system hall of fame, making the blimp the rst sports game. 25 percent per year. comes in a variety of sizes, from 14 began in August 2017 with produc- non-player or coach to be inducted. During the National College Foot- “Plus, because of the ease in to 24.5 inches, making it suitable to tion following in May of last year. According to Goodyear, the blimp’s ball Championship game between which the replacement is done, they t over all the popular existing met- See Robbins, page 23 tenure with college football began as a Clemson and Alabama on Jan. 7, ESPN request from network television to pro- conducted a live production of the vide aerial coverage for the 1955 Rose 2019 College Football Playoff Na- Bowl Game. Since then, the blimp has tional Championship from inside the covered more than 2,000 games, in- Goodyear Blimp airing on ESPN3 cluding major games such as the Rose and the ESPN App as part of ESPN’s and Cotton Bowls. MegaCast presentation. “College players and fans know that Todd Macsuga, Goodyear’s gener- when the Goodyear Blimp shows up, al manager of brand marketing, North it’s a big game. Its presence is intrinsi- America consumer, said the blimp “has cally known and tied to the traditions established itself as a symbol of the that make college football so great,” greatness that takes place on college NFF Chairman Archie Manning said. football elds each Saturday.” “As the eye in the sky to college foot- A new exhibit opening soon at the ball’s greatest coaches, players and mo- College Football Hall of Fame in Atlan- ments, it’s only tting that the Goodyear ta will showcase historical blimp arti- Blimp joins the College Football Hall facts, video footage and pictures. of Fame in a year when the game cele- Goodyear has parlayed the blimp-col- brates its 150th anniversary.” lege football link into its current consum- Kirk Herbstreit, former college foot- er advertising campaign, “Be Blimpwor- ball player and ESPN analyst, calls the thy.” blimp “one of sports’ biggest icons.” “The ‘Blimpworthy’ concept is root- “For me, playing under the blimp felt ed in the idea that the blimp only shows like a payoff for the hard work that goes up for the most marquee matchups, a into game day, so I’m excited it’s getting level only reached by hard work and

Robbins L.L.C. photos recognized for its contributions to col- perseverance,” Mr. Macsuga said at the Accu-Fit Sealing Ring system, showing the top view, side view and (left) patent-pending imprint on top. lege football.” start of the 2018 football season. Sears to close 34 Steel wheel hearing postponed Government shutdown closes trade administration more auto centers WASHINGTON — The partial federal government Accuride and Maxion requested antidumping shutdown that began Dec. 22 has forced the U.S. and countervailing duty relief under Sections HOFFMAN ESTATES, Ill. — Sears Holdings • Salisbury, Md.; International Trade Administration (ITA) to sus- 701 and 731 of the Trade Act. Corp. plans to close 80 more Sears and • Muskegon, Mich.; pend operations until further notice — including In August, the U.S. Department of Commerce Kmart retail stores by late March, in- • Durham, N.C. (two locations); a Jan. 8 hearing on potential antidumping and levied preliminary countervailing duties rang- cluding 34 Sears Auto Centers, as part of • Lincoln and Omaha, Neb.; countervailing duties against steel truck wheels ing from 48.75 to 172.51 percent against Chinese its restructuring plan. • Las Vegas; imported from China. steel wheel importers. In November, Commerce Sears Holdings led for voluntary Chap- • Rochester, N.Y.; The hearing was still listed in the daily found a preliminary antidumping duty ter 11 bankruptcy protection in mid-Octo- • Columbus and Spring eld, Ohio; calendar section on the International margin of 231.7 percent. In both cases, ber and indicated at that time it would • Medford, Ore.; Trade Commission’s (ITC) website in the agency instructed U.S. Customs close 142 unpro table stores by year-end • Altoona, Greensburg and Lancaster, Pa.; early January, but the agency ceased and Border Protection to collect cash 2018. • Abilene, Amarillo, Killeen, Plano, operations when its appropriations deposits in those amounts from Chi- Bankruptcy court of cials recently ap- Richardson and Waco, Texas; lapsed in the dispute between Presi- nese steel wheel importers. proved a $5.2 billion bid by former CEO • Charlottesville, Va.; and dent Trump and Congress over wheth- Commerce was scheduled to issue Edward Lampert to keep 425 stores open. • Kennewick, Wash. er to appropriate $5.6 billion to build a nal antidumping and countervailing The Sears stores with auto centers tar- At last report, Sears’ network of retail wall along the U.S. border with Mexico. duties against the Chinese imports on or geted for closing in this latest round are: stores already has shrunk to about 500 The steel wheel investigation is based about Jan. 8, the same date as the ITC hear- • Colorado Springs (two stores) and locations, including roughly 200 with on petitions led with the ITC in March 2018 ing. However, the trade functions of Commerce Pueblo, Colo.; auto centers attached, according to data by Accuride Corp. of Evansville, Ind., and Max- also were suspended because of the shutdown. • Port Charlotte, Tallahassee and Tam- available on Sears’ website. ion Wheels Akron L.L.C. of Akron, Ohio. Mr. Trump and congressional negotiators pa, Fla.; Sears and Amazon.com Inc. announced According to the ITC notice scheduling the - were still far apart on Jan. 17 as to an agreement • Gainesville, Ga.; in August 2018 that Sears would provide nal phase of the investigation, the probe involves on funding border security. Among the alterna- • Sioux City, Iowa; full-service tire installation and balancing “certain on-the-road steel wheels, discs, and rims tives being discussed by the Trump administra- • Cherry Valley and Fairview Heights, for Amazon.com customers at its remain- for tubeless tires, with a nominal rim diameter of tion was an emergency order to fund building of Ill.; ing Sears Auto Center locations nation- 22.5 includes and 24.5 inches, regardless of width.” a border wall. • Wichita, Kan.; wide, including Alaska and Hawaii. 4 • January 21, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com

Titan partners in Voltyre-Prom JV NEWS IN BRIEF seeking to exit the Russian venture Firestone truck tire prices rising NASHVILLE, Tenn. — Bridgestone Americas Tire Op- QUINCY, Ill. — Titan International Inc.’s while Titan has yet to make an offer to set- investments in the Russian economy. erations and Bridgestone Canada Inc. are planning partners in its Voltyre-Prom joint venture tle the put option by One Equity afliate As for OEP’s put option, the cash settle- to increase prices on Firestone-brand radial truck in Russia have submitted “put options” to OEP 11 Cooperatief U.A. ment amount would be in the range of $45 and bus tires sold in the U.S. and Canada by 4 per- Titan that obligate the Quincy-based farm Titan and RDIF’s non-binding letter of million to $46.2 million, while the share cent, effective Feb. 1. and OTR tire and wheel maker to buy out intent calls for Titan to pay RDIF $25 mil- amount range would be about 7.3 million to The move is in response to increased business the partners’ ownership shares. lion in cash and issue RDIF $25 million in 7.5 million shares, Titan said. OEP’s owner- costs and other market dynamics, the companies The put options — from Russian Direct shares of restricted Titan common stock, ship share in Voltyre-Prom is 21.3 percent. said, without elaborating. Investment Fund (RDIF) and an afliate Titan said, in exchange for a 10.7-percent OEP is a New York-based middle-mar- Members of the U.S. and Canadian commercial of One Equity Partners (OEP) — were part ownership stake in Voltyre-Prom. ket private equity rm that focuses on the sales teams are contacting customers to provide of the original 2013 agreement to buy the This deal would increase Titan’s own- industrial, healthcare and technology sec- more detailed information about the changes. Volgograd, Russia-based producer of agri- ership of the Russian manufacturer to 53.7 tors in North America and Europe. The price change announcement comes just a few cultural and industrial tires. percent and reduce RDIF’s ownership to 25 Titan’s interest in Voltyre-Prom in 2013 months after Bridgestone Americas raised prices on Together, the options at face value rep- percent. was prompted by several of its key custom- all Bridgestone- and Firestone-brand truck and bus resent a cash payout of more than $120 The terms of the deal would require ers, such as Deere & Co., CNH Industrial, tires and Bandag retreads sold to national account, million or as many as 18 million shares of RDIF to hold the stock for three years, Ti- Agco Corp. and Caterpillar Inc., growing national eet and national eet-preferred accounts Titan stock or a combination of the two. tan said, and provide Titan the right to buy their businesses in Russia and other East- in the U.S. and Canada. Titan and Moscow-based RDIF have agreed back the Titan shares from RDIF for $25 ern European markets. Those adjustments, effective Nov. 9, varied by un- to settle RDIF’s earlier claim with a com- million during the three-year period. The venture’s plant in Volgograd spans disclosed amounts by product line and service range, bination of cash and shares of Titan com- RDIF is a $10 billion fund established 2 million-plus square feet and was rated at Bridgestone said at the time. mon stock, valued together at $50 million, by the Russian government to make equity 2 million tires per year. Bridgestone also raised prices 10 percent on Sept. 24 on Dayton-brand truck and bus tires sold in the Doublestar set to open U.S. and Canada. ‘smart’ car tire plant Rubber demand expected to grow By Jane Ho SINGAPORE — Global demand for rubber should rise China correspondent about 2.5 percent in 2019 to more than 30 million metric tons, according to the International Rubber QINGDAO, China — Qingdao Doublestar Tire Co. Ltd. Study Group (IRSG). plans to bring a highly automated “smart” car tire plant The IRSG’s forecast — based on the Internation- — dubbed the “Industry 4.0” high-performance green al Monetary Fund’s world outlook for the rubber tire plant — on stream shortly, the company disclosed industry and other scenarios — represents a slight Dec. 21. drop in demand growth for rubber from a 3.2-per- The Qingdao-based tire maker declined to provide cent consumption increase last year. further details — including a specic start-up date — The Singapore-based industry trade group foresees

Goodyear photo Goodyear but indicated that it had completed trial production and growth in demand for both natural rubber (NR) and Artist Blake McFarland used Goodyear tires to create sculptures of optimization phases on the $131 million project. synthetic rubber (SR) of 2.6 and 2.4 percent, respec- the mascots of the competing Cotton Bowl 2018 teams: the Univer- Construction started in 2016 on the 6-million-unit/ tively. sity of Notre Dame Leprechaun and the Clemson University Tiger. year-rated facility, located at Doublestar’s manufactur- The IRSG did not elaborate in a brief statement ing complex site in Qingdao. published Dec. 28 on the reasons for its forecast. The plant is expected to generate $22 million in According to the IRSG data, global rubber con- Cotton Bowl, Goodyear extend earnings annually on $315 million in sales when in full sumption increased to about 29.3 million tons in operation, according to Doublestar, which last year ac- 2018. NR growth was pegged at 4.9 percent, to 13.9 college bowl game sponsorship quired a controlling stake in South Korea’s Kumho Tire million tons, and SR growth at 1.7 percent, to 15.4 ARLINGTON, Texas — The Cotton Bowl Athletic Association and Good- Co. Inc. million tons. year have extended Goodyear’s title sponsorship of the Cotton Bowl Doublestar has a second smart factory in the works World NR and SR demand is set to increase to Classic football bowl game played annually at AT&T Stadium in Ar- as well. Last March it disclosed plans to relocate its 14.2 million tons and 15.8 million tons, respective- lington, Texas. Doublestar Dongfeng Tire subsidiary in Shiyan, China, ly, this year. Goodyear has been the game’s title sponsor since 2015. The parties and upgrade it to a “smart” factory in a $220-million, Singapore-based IRSG is an inter-governmental termed the extension a “multiyear agreement” but declined to specify 18-month project. organization composed of 36 rubber producing na- how many years or the value of the contract. The new plant, with planned annual capacity of 1.5 tions and 120 consuming stakeholders. The mem- million truck/bus and 5 million passenger tires, is be- ber nations are: Republic of Cameroon, Cote d’Ivo- The Goodyear Cotton Bowl Classic is a member of the “New Year’s ing built on a 3.23-million-sq.-ft. site in the Zhangwan ire, The European Union (28 member states), India, Six,” the top bowl games included in the College Football Playoff District Industrial Park in Shiyan, Hubei Province. Japan, Nigeria, Russian Federation, Singapore and Seminal rotation, Goodyear said. It hosted the seminal game fea- Sri Lanka. turing Clemson University versus the University of Notre Dame on Prinx Chengshan targets The U.S. withdrew from the IRSG as a member Dec. 29 and will host seminal games in 2021 and 2024. nation in 2011, but the U.S. Tire Manufacturers As- In addition to the Cotton Bowl sponsorship, Goodyear said it will sociation is a member. continue its collaboration with ESPN, the exclusive media rights holder Thailand for new plant of the Goodyear Cotton Bowl Classic and the College Football Playoff. By Jane Ho Titan raises funds for cancer clinic As part of this collaboration, Goodyear will provide aerial coverage China correspondent for selected ESPN-broadcast college football games. ESPN also will HONG KONG — Prinx Chengshan Tire Co. Ltd. — a for- DES MOINES, Iowa — Employees at Titan Internation- highlight Goodyear’s position in the sport with multimedia support mer Cooper Tire & Rubber Co. joint venture — has al Inc.'s Des Moines factory raised $34,000 last year across its various platforms, and Goodyear will remain an ofcial agreed to buy up to seven plots of land in Thailand as to help fund breast cancer awareness. sponsor of the College Football Playoff. the potential site for a new plant, the company disclosed The workers raised the funds at the company’s “Goodyear has a storied history with college football and with recently. fourth annual Ride to a Cure event, a family-friend- ESPN,” said Rita Ferro, president, Walt Disney Co. advertising sales. The total area was listed at up to 2,250 acres, though ly event at the plant, held Oct. 13, that featured hay ESPN is a Disney company. “They’ve given fans a unique perspective the nal gure is still pending local government conr- rides, a car show, pumpkin painting, in atables and of the game for decades, and we look forward to continuing our rela- mation, the company stated. The transactions are valued spin art. tionship for years to come.” at $25 million. All proceeds from the event went to the John Stod- Goodyear has a six-decade-plus association with college football Rongcheng, Shandong, China-based Prinx Chengshan dard Cancer Center Oncology Navigator Program, that started with the Goodyear Blimp providing aerial coverage of the — considered the No. 33 tire maker worldwide with scal which provides comprehensive care to cancer patients 1955 Rose Bowl. Since then the blimp has covered more than 2,000 2017 sales of $855 million — previously had discussed and their families. Malaysia as an overseas site but has been informed by its college football games and since 2016 is at the heart of the company’s controlling shareholder Chengshan Group that the project “Blimpworthy” advertising campaign. was discontinued due to slow progress. Volume 36, No. 21—Tire Business (ISSN 0746-9071) is published To celebrate the sponsorship renewal, Goodyear and the Cotton biweekly except the last issue in December by Crain Communications The tire maker said it believes the Thai site offers low Inc. at 1725 Merriman Road, Suite 300, Akron, Ohio 44313. Periodi- Bowl continued their tradition of creating life-sized sculptures — costs for raw materials and transportation and avoids inter- cals postage paid at Akron and additional mailing offices. Postmaster: made out of tires by tire artist and former minor league baseball pitch- national trade barriers. Other benets include local prefer- Send address changes to: Tire Business, Circulation Dept., 1155 Gra- tiot Ave., Detroit, Mich. 48207-2912. er Blake McFarland — of the mascots of the competing teams: the ential policies on areas such as taxes and human resources, Clemson Tiger and Notre Dame Leprechaun. Subscription rates: U.S., $79—one year; $148—2 years; group rates the announcement said. available. Surface delivery—to Canada, 1 year—$107 (includes GST); The sculptures took more than 500 hours to create and were con- Prinx Chengshan is in the process of establishing a to all other countries, $119 per year. Four weeks notice required for structed from more than 375 Goodyear-branded tires and 3,200 hid- U.S. subsidiary, Prinx Chengshan North America Inc., change of address. Single copy—$4. Canadian Post International den screws. Goodyear donated the sculptures to the respective uni- Publications Mail Product (Canadian Distribution) Sales Agreement in the Los Angeles area to handle shipments of truck #40012850, GST #136760444. Canadian return address: 4960-2 Walk- versities after the game. tires to North America starting in early 2019. er Road, Windsor, ON N9A6J3. Printed in U.S.A. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, January 21, 2019 • 5 U.S. auto industry marks 4th-biggest year on record By David Phillips would mark the rst total below 17 While interest rates are rising and percent at Lincoln. For the year, Ford Automotive News million since 2014. used-vehicle supplies are growing, sales dropped 3.5 percent behind an Ms. Brinley said the expansion new-vehicle sales continue to be sup- 18-percent decline in car deliveries. DETROIT — U.S. auto sales increased of the mid-size pickup segment will ported by light-truck demand, em- GM’s U.S. sales dipped an estimat- 2.2 percent in December, capping a garner enthusiasm and sales for ployment gains, healthy economic ed 3.7 percent last month. GM said year that saw overall volume rise 0.6 2019, while new mid-size and com- growth and low gasoline prices. it sold 785,229 light vehicles in the percent to 17.3 million cars and light pact CUVs will serve to enable these U.S. sales at FCA US, American fourth quarter, a decline of 2.7 percent trucks even as auto makers endeav- brands a path for retaining sedan buy- Honda and Nissan Motor Co. rose from the last three months of 2017. ored to counter slumping car demand ers who might otherwise leave. last month, while Ford Motor Co., Overall, GM’s U.S. sales fell 1.6 per- with higher light-truck deliveries. “Auto makers will continue shift- General Motors Co. and Toyota cent to 2.95 million vehicles last year, December, with sales of 1.64 million ing showrooms from cars to utilities,” Motor Corp. posted declines. with every brand posting lower vol- vehicles, was the second-best month of Ms. Brinley said. “While the decline FCA US said December sales rose ume. Buick, down 5.6 percent, led the

the year per volume. The 17.3 million in passenger car sales in 2019 is not Cox Automotive image 14 percent, driven by gains of 10 decline. GM said its U.S. car sales slid light vehicles sold in 2018 represents expected to be quite as sharp as in that the rm expects rising interest percent at Jeep, 37 percent at Ram 24 percent in the fourth quarter and 21 the fourth-biggest year on record. 2018, conditions suggest the bottom for rates, moderating growth in OEM and 17 percent at Dodge. For the year, percent for the year, while light-truck The robust December seasonally ad- passenger-car share has not yet been incentive levels and competition from FCA’s U.S. deliveries jumped 9 per- demand rose 2.4 percent in 2018. justed, annualized rate of 17.7 million found.” the used car market to impose some cent. At Toyota, December volume fell easily topped December 2017’s SAAR Christopher Hopson, IHS Markit’s pressure on new vehicle demand. At Ford, December sales dropped 0.9 percent, with sales down 1.1 per- of 17.4 million and November’s 17.6 manager of North America light ve- IHS Markit projects auto sales to 8.8 percent, with volume off 9.6 percent at the Toyota brand but rising 0.2 million sales pace. hicle forecasting, said in a statement reach 16.8 million units in 2019. cent at the Ford division but rising 8.5 percent at Lexus. “New vehicle sales were surprisingly strong in 2018 despite late cycle head- winds from higher interest rates and 2019! in More Earn more nearly-new competition in the

used market,” Jonathan Smoke, chief Traction dealers earn Double Rewards on select purchases each quarter. economist for Cox Automotive, said. “The key positive factor was stimu- lated demand from tax reform, which strengthened retail demand as the year progressed and also enabled strong gains in eet sales.” Generous discounts and steady economic growth fueled new-vehicle sales throughout the year. U.S. consumers also appeared to shrug off slumping stock prices in December. U.S. sales had risen 0.4 percent through November, Associate Dealer Program with higher eet shipments offsetting a slight dip in retail demand during the Black Card Rewards year, analysts say. Earn monetary rewards quarterly on a Kenda Traction Black Card. Overall, U.S. light-truck sales rose 6.9 percent last month and 7.7 percent CO-OP Rewards/Point-Of-Sale Support in 2018, while car deliveries slid 8.2 Gain co-op rewards that you can use for in-store advertising or percent in December and 13 percent promotional giveaways via the online Kenda Store. for the year, marking the fth straight annual decline in car volume. “U.S. sales in 2018 proved more re- Marketing Portal silient than initially expected, with an Receive access to Kenda branding tools such as product images, logos accelerated transition to utility vehicles and our digital catalog. on new models becoming available and on pullback in passenger car produc- Dealer Locator tion and passenger car incentives,” said Customers using the dealer locator on KendaTire.com will be guided to Stephanie Brinley, principal automotive your store. analyst with IHS Markit. In Canada, sales of new vehicles dropped for the rst time in nearly Global Brand with Local Support a decade, falling 1.9 percent shy of New products are being designed for North America in our state-of-the- 2017 at just over 2 million cars and art technical center located in Akron, OH. We also have a full team of light trucks, according to the Auto- experienced support staff to help you with any product questions at motive News Data Center in Detroit. Kenda USA headquarters in Columbus, OH. A drop in sales of 6.5 percent in December to 116,605 vehicles con- In-Demand Products tributed to the decline. Our passenger and light truck tires are designed to give your customers “Given all of the political and economic turbulence — combined with solid performance at a great price. Associate Dealers also have access interest rate increases — it is difcult to branded specialty products with many O.E. ﬁ tments such as trailer to classify the 2018 as disappointing tires, ATV, golf, and lawn and garden tires. from a sales perspective,” said David Adams, president of Global Auto- makers of Canada, which speaks for import brands sold in Canada. “We’ve had a decade of record sales each year, and at some point things are going to slow down. That’s the nature of the business.” Ford repeated as overall sales leader with 297,902 vehicles sold during the year. The Ford F-series pickup and the Honda Civic retained the titles of Cana- da’s best-selling vehicle and best-selling passenger car, respectively, for 2018. Trucks continued to grow market share in 2018, comprising 70.1 percent of all vehicles sold during the year, up from 68.6 percent in 2017, according to the Global Automakers of Canada. For 2019, most early forecasts see U.S. industry sales coming in at 16.8 million to 17 million units, with some estimates as low as 16.7 million. That Enroll today at KendaTraction.com 6 • January 21, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Opinion

Brennan Lafferty Playing numbers game benefits dealers V.P./group publisher [email protected] • 313-446-6768 ales data that foreshadow our sister publication, Automotive That’s great news for those who from the U.S. Department of Trans- EDITORIAL STAFF future trends are available News, released new vehicle sales operate tire and automotive service portation, the average age of pas- 330-836-9180 FAX: 330-836-2831 in just about every industry. for 2018. shops. Despite all the talk of an senger and light-truck vehicles is David E. Zielasko S V.P./publisher, Editorial director For example, as soon as mobile Here are two big takeaways impending economic downturn 11.6 years, an increase of nearly [email protected] • 330-865-6131 phones became smaller, smarter from the report: a and the inevitabil- 1.5 years over the last decade. Donald J. Detore Editor and affordable, sales took off. It surge in U.S. auto ity of ride-sharing So if the trend continues, the bulk [email protected] • 330-865-6126 was easy to foresee the connect- sales in December and autonomous of those 17.3 million vehicles sold Bruce Davis capped a year that vehicles, consum- in 2018 will need service at least Special projects reporter ed world we live in today. [email protected] • 330-865-6145 Those in the tire and automotive saw overall vol- OUR VIEW ers still bought until 2030. That’s just the average. OUR VIEW Miles D. Moore service industry are perhaps more ume rise 0.6 per- vehicles in record Not only do data show how many Senior Washington reporter vehicles will need serviced, they [email protected] • 703-256-9275 fortunate than other industries in cent to 17.3 million cars and light numbers last year. Kathy McCarron that regard. Sales gures not only il- trucks, representing the fourth-big- Here’s better news: 40,000 to detail what makes and models of Reporter lustrate what vehicles are on the road gest year on record; and sales of light 60,000 miles later, those 17.3 million those vehicles will need serviced. [email protected] • 330-865-6127 Michael McCrady today, but also what will be in tire trucks, including SUVs and CUVs, vehicles will need tires ... and brakes While U.S. sales for each of the Art director/page designer and auto service shops tomorrow. grew 7.7 percent to nearly 12 million ... and repair service ... and on and on. ve largest auto brands — Ford, Toy- [email protected] • 330-865-6148 A big chunk of these data was units, accounting for a record 69 per- The data also provide a peek ota, Chevrolet, Honda and Nissan INTERNET STAFF presented earlier this month when cent of U.S. light vehicle sales. into tomorrow. According to data — declined in 2018, sales of Jeep, Erin Pustay Beaven Online content editor the No. 6 brand, surged 18 percent, [email protected] • 330-865-6106 enough to keep the entire industry in Mark McCarron Digital coordinator the black for the year. Together auto [email protected] • 330-865-6123 makers sold about 96,000 more ve- PRODUCTION/IT STAFF hicles than in 2017, and Jeep gained Scott Merryweather nearly 145,000 alone. Media services manager [email protected] • 330-865-6104 Ram trucks grew substantially, Anthony DiPonio as did Subaru’s lineup of all-wheel- Chief information of cer drive wagons and crossovers. [email protected] • 313-446-1605 SALES STAFF Meanwhile, sales of traditional 330-836-9180 FAX: 330-836-1005 passenger cars dropped 13 percent Patrick Cannon Group sales director to 5.4 million units, the fewest sold [email protected] • 313-916 -1625 since 1958. That fact af rms the de- Christine Zernick cision of the Big 3 auto makers to all Sales director [email protected] • 330-865-6108 but eliminate production of sedans. Bruce Miller One other notable datapoint: sales Regional Sales manager of Tesla vehicles nearly quadrupled [email protected] • 313-373-6665 John Hickey to around 182,400. Electric vehicles Sales manager seem to be gaining market share. [email protected] • 260-437-8502 Peter Bianchi Tire and automotive service deal- Sales manager ers should study these data, partic- [email protected] • 312-265-6484 ularly within their own region, as Brooke Stender Classi ed sales representative they plan for the future. [email protected] •330-865-6117 Lori DiFrancesco Sales and conference coordinator FORUM [email protected] • 330-865-6121 MARKETING & EVENTS STAFF Sarah Arnold Marketing & events manager [email protected] • 330-865-6169 Industry 4.0 revolutionizing tire business Sally Dietz Assistant trade show manager By Dan Heelis on distribution centers to make sure especially as the rest of the tire indus- In recent years, robots, microchips [email protected] • 330-865-6112 Cimcorp Oy they not only can keep retail loca- try embraces the next generation of and computers gave rise to the third in- AUDIENCE DEVELOPMENT tions well stocked, but also ful ll technology at the intersection of ro- dustrial revolution, increasing process- Jennifer Mosley Group director, Audience development oday’s tire industry is facing new online orders. botics, computers and the Internet of ing capacity in society and industry. [email protected] • 312-649-5312 unprecedented chal- Distribution centers now Things (IoT). Now, the fourth — Industry 4.0 — For new subscriptions or change lenges in distribu- have to accommodate a grow- Collectively, these technologies sees robots, computers and the IoT of address write to: T Circulation Department, Tire Business tion, stemming from both ing number of SKUs, as man- make up the fourth Industrial Rev- converging to create new cyberphys- 1155 Gratiot Ave. the marketplace and within ufacturers continue to expand olution, also known as Industry 4.0. ical environments, where companies Detroit, Mich. 48207-2912 the four walls of their dis- their variety of consumer and can use automation to speed and scale or call 877-320-1716 (U.S. and Canada only) or 313-446-0450. tribution centers. commercial tire offerings. Industrial revolution IV up repeatable tasks, as well as use sen- FAX: 313-446-6777 Namely, consumers now Tire dealers must now nd sors to capture data on what automat- email: [email protected] demand greater speed and ways to utilize their existing The rst industrial revolution came ed tools and robots are doing and how For single copy sales: email: [email protected] availability of goods. Many storage space better and main- out of the birth of mechanization and they are performing. Reprints: are millennials who are used tain the ef cient movement of the advent of the steam engine. Businesses can then use the cap- Heelis Lauren Melesio to the ecommerce experi- a heightened number of goods The second was powered by the tured data to nd ways to improve [email protected] • 212-210 - 0707 ence, where they can get exactly what within their limited space. use of electricity and the invention upon processes or reorganize robot- EXECUTIVE OFFICES they want and when they want it. These modern challenges require of electric motors, which enabled ic operations in real time. Industry 1725 Merriman Road, Suite 300, This places signi cant pressure modern solutions. Dealers must adapt, the mass production of goods. See Dealers, page 7 Akron, Ohio 44313-5283 330-836-9180 Letters to the Editor FAX: 330-836-2831 CRAIN COMMUNICATIONS INC Tire Business encourages letters to the editor on any subject of interest to independent Keith E. Crain Mary Kay Crain tire dealers. Send a letter to: Editor, Tire Chairman Vice chairman Business, 1725 Merriman Road, Suite 300, KC Crain Chris Crain President Senior executive vice Akron, Ohio 44313-5283. Letters also can be Lexie Crain president emailed to [email protected]. Armstrong Robert Recchia Letters must be signed and may be edited Secretary Chief nancial of cer for length and clarity. Please include a day- G.D. Crain Jr. Gertrude R. Crain time phone number for veri cation purposes. Founder (1885-1973) Chairman (1911-1996) Letters also may be published on TB’s website: www.tirebusiness.com. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, January 21, 2019 • 7 Dealers should embrace Finkelstein opens D/C in Va. technological advances COLONIAL HEIGHTS, Va. — Max Finkelstein Inc. (MFI) in Richmond, a strategic market with a successful cus- Continued from page 6 tion is easier to manage, keeps costs has opened a distribution center in Colonial Heights tomer base, while also allowing us to service surround- 4.0 is creating smarter, data-driven low and delivers quick returns on to help improve service to customers in southern Vir- ing markets in southern Virginia, including Norfolk enterprises with the ability to pivot investment. If unsure where to start, ginia, including the Richmond metro area. and Newport News,” Brian Finkelstein, vice president of and innovate as needed. dealers can look toward their sys- The cross-dock-design facility spans 116,500 square sales, said. It is set to disrupt virtually every tems’ supplier to assess operations feet with 34 loading dock doors. The distribution The warehouse, located near the State Route 620 industry, including tire manufactur- and develop a rollout plan to move center will operate multiple shifts, exit on I-95 south of Richmond, “further ing and distribution, and accelerate towards the automated, data-driven providing delivery services strengthens our distribution network in the the pace of business. tire distribution center of the future. and will-call pick-up Mid-Atlantic region, and ensures that we In the modern Industry 4.0-en- Monday through Sat- can best serve our customers in abled distribution center, dealers can Don Heelis is a mechanical engineer urday, MFI said. Richmond and the surrounding control as well as track and trace prod- and sales manager for Cimcorp Oy, a The facility is MFI’s markets throughout the south- ucts from receiving, through storage manufacturer and integrator of turnkey second in Virginia — ern half of Virginia,” Sean and all the way to the loading dock for robotic gantry-based order ful llment the other opened in 2017 Franciscus, director of sup- outbound shipping. and tire handling solutions. Mr. Heelis in Winchester — and ply chain, said. Two webs make up the cyber- helps customers develop fully automat- 15th overall. Astoria, N.Y.-based MFI physical environment: the physical ed systems that increase ef ciency, ac- “We are excited to is a family-owned and -op- network of hardware and the cyber curacy and throughput for warehouses nally have a presence erated company. network that ties everything togeth- and distribution centers. er through the seamless ow of data. The physical network of automated systems includes automated guided vehicles (AGVs), mobile robots, gantry robots, articulated robots, monorail trans- fers, automated storage and retrieval systems (AS/RS), conveyors, etc. These systems can move tires between receiving, storage, preparation and loading with high precision and accuracy. Notably, using high-density storage and an AS/RS, dealers can house more products in up to 50 percent less space, which can help address the pro- liferation of SKUs. And thanks to the speed of robot- ics, they can implement just-in-time order picking and send tires in the right sequence to outbound shipping trucks within minutes of their arriv- al, rather than hours in advance. This minimizes the space needed for preparing orders and truck turn- around times. The hardware is out- tted with barcode readers, vision systems, laser scanners or other technologies that collect and send sensory data to software in the cyber network. In the Industry 4.0 distribution center, all automated equipment and subsystems are connected to higher-level, internet-enabled control systems that are able to assess and control performance. For instance, Warehouse Control Systems (WCSs) can take real-time sensory data to guide the movement of machines for optimized intralogis- tics, improved inventory management and maximized throughput, whether a dealer is shipping tires to retail stores or directly to the consumer. With the right combination of automated technology, sensors and advanced control systems, distribution centers can capture data to understand their processes, run analyses and use the results better to improve material ow. They can thus have total control over the tires within their physical facilities and readily accommodate changes to an individual order or demand in the market as a whole. All this talk about cyberphysical systems and real-time data ow may seem initially daunting for the un- initiated. Industry 4.0 may sound like a far-off consideration to look into later in the future. In truth, companies can start taking steps forward now using a mod- ular approach that gradually scales up investments by installing cellular automation one step at a time. Many of these technologies can t into existing operations as islands of automation. Dealers can introduce more Industry 4.0 hardware and software and gradually connect the cells together. This kind of phased implementa- 8 • January 21, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com

AUTOMOTIVE SERVICE Growth in Canadian economy to decelerate By Kathy McCarron the Canadian business landscape. RNR’s Sutton: Buying tires online Tire Business Staff “As Canada’s baby boomers are heading to retirement, the growth ‘just doesn’t make sense’ imilar to the outlook for the of Canada’s working age population Sutton U.S. economy in 2019, the Ca- will remain below 0.2 percent (in Snadian economy is expected to 2019) and the decade to come,” Mr. By Kathy McCarron really like to get focused on the northern sector. grow, but at a slower pace. Cleroux said. Tire Business Staff We have a bunch of stores all the way up in Washington “The Canadian economy will re- A BDC study found out that around (D.C.), but there is a lot of room in between. So we got a ton main solid in 2019 and will likely 40 percent of Canadian small and me- Larry Sutton, CEO of Tampa, Fla.-based RNR Tire of geography to focus on. Our franchise plan is really to continue to expand at about 2 percent. dium-sized businesses are struggling Express, offers his observations of the tire business in ll in the country in areas where we don’t exist right now. It signals that the country is using to nd people to ll job positions. 2018 and his expectations for 2019, including the expan- current capital and labor at close to This limits business growth and will sion of his rent-to-own tire and wheel retail franchise. Is the expansion involving existing franchisees full capacity,” according to Pierre eventually impact the economy, so RNR has 15 company-owned stores along with 22 that are opening more stores or are you bringing Cleroux, vice presi- business owners need to get creative franchisees who operate 103 stores — the largest fran- in new franchise owners? dent, research and to nd the talent they need chisee has 22 stores while most of the others manage Combination of both. Most of our franchisees have chief economist to continue to remain 12-15 outlets. multi-development agreements and so they are ful lling at the Business competitive, Mr. those as they go. Development Cleroux said. How would you describe the tire retail climate And then we have quite a few new franchisees com- Bank of Cana- Deloitte said in 2018? ing on board on somewhat of a regular basis. Probably da (BDC). demographics is I base most of everything, of course, on our business not as regular as we would like it but it’s getting better The BDC esti- distorting the his- and our results. We were up in every category across the every year .... mated a 2.1-percent torical unemployment country in all of our stores. Of course, that’s not 100 per- We have over 200 stores under contract for future ex- growth rate for the gures — the Canadian cent, we got about 118 stores, so obviously a few might pansion for guys who have development plans over the Canadian economy in 2018, com- unemployment rate hit a not have enjoyed the same success, but as a group we next seven years. In reality, by 2023 we’ll have a mini- pared with 3 percent in 2017. 40-year low of 5.8 percent in the rst were up 24 percent in installations. So that’s kind of the mum of 300 stores. A slowdown in economic growth is half of 2018 — since an aging popula- measure of what I look at internally, and I read all the That’s provided everyone opens on time, what their a healthy occurrence, according De- tion tends to lower the measure of the trade magazines and everything so it seemed like a pret- commitment is, and we try to be conservative because that loitte Canada, given that the economy unemployment rate. ty good year in the tire business. doesn’t count a lot of new franchisees coming on board. has little domestic slack with the un- While tight labor markets can fuel employment rate hovering at a nearly in ation through rising wages that get What were the major issues impacting tire deal- How has the economy impacted the rent-to-own four-decade low and capacity utiliza- passed along to consumers, Deloitte erships? business? Have you seen an increase or decrease tion at high levels. claimed this does not appear to be the The biggest issues impacting tire dealerships (in 2018) in customers seeking this option? “Softening economic growth will case in Canada. From January to May, were the tire dealerships themselves. Wherever you go, We have seen that the rent-to-own industry is on the also re ect a shift in the main driv- overall wages increased 3.9 percent, you always hear and read about these tire dealers com- rise and projected for continued solid growth (this) year. ers of expansion. Domestic demand compared with the year-ago period. plaining about the threat of online sales. Yet, tire sales With our lease-to-own program, we have seen solid growth is poised to diminish because However, from May to September, have the slowest growth of online penetration compared growth from customers that have never used this pur- consumers and real estate can no lon- wages increased only 2.2 percent. to any other consumer product. chasing option before. ger drive growth as they have in the “Sustained low unemployment The way I see things is that buying tires online is a lot When the advantages of using the rent-to-own model past. This means that exports and busi- should ultimately bid up wages and like trying to get a haircut online — it just doesn’t make and additional services are explained properly by RTO ness investment will be more import- this is why the Bank of Canada will sense. Online sellers will never be able to provide the retailers, consumers see the value and select the pro- ant contributors to economic growth,” need to gradually tighten monetary customer experience that a traditional brick-and-mortar gram over lower cash prices and competitor prices. ... Craig Alexander, chief economist and policy,” Mr. Alexander said. tire retailer is capable of, especially in the realm of tires Rent-to-own is not a great description for our biggest partner, Deloitte Canada, said. and wheels. business model. We use a lease-to-own agreement to sup- Deloitte noted that the U.S. Mexi- Spending port our six-months-same-as-cash program, so there would co Canada Agreement (USMCA), the How have the disruptions/joint ventures in the tire be no interest incurred, and that is our top sales category. tentative free trade deal involving the Strong job creation, declining un- distributor landscape impacted tire dealerships? Using the term “rent-to-own” is probably a stretch U.S., Mexico and Canada, lifts a cloud employment, rising personal income From my perspective, the disruptions/joint ventures because 70 percent of our business is done on a six- of uncertainty that posed a downside gains, low interest rates and strong earlier (last) year have not signi cantly impacted dealers months-as-cash basis. We simply support that with a risk to its outlook and it should help real estate markets have helped to unless they were directly involved in the process. lease-to-own agreement in the event that, at the end of boost exports and investment. keep consumer wallets open, accord- six months, if they don’t want to pay out, then they can The U.S. and Canadian economies ing to Deloitte, which expects con- What are your expectations for the tire retail just make a payment. generally move in concert, but they are sumers to continue their spending, market in 2019? So if their cash is not in a position or they don’t want not in tune right now, according to The but at a moderate pace. At RNR, we expect a minimum same-store growth to complete the deal, then most of them will complete Conference Board of Canada. While Consumers are expected to constrain in tire sales of 10 to 15 percent and for the market itself, it before the next six-month period. It keeps their costs tax cuts fueled a consumer-led boom in their debt growth in 2019 as rising in- also we expect positive growth. down that way. the U.S., rising interest rates and falling terest rates lift debt-servicing costs, De- housing prices are causing a pullback loitte added, predicting personal con- How did the tire franchise market fare in 2018? RNR sells only tires, wheels and alignments. in the pace of consumer spending and sumption growth will fall to 1.8 percent At RNR Tire Express, we saw continued growth of Has any consideration been given to adding more overall economic growth in Canada. in 2019, after an expected increase of sales and revenue in 2018 reaching 20-percent growth in services? The Canadian dollar, the “loonie,” 2.2 percent in 2018, and continue to de- same-store revenues. For the market itself, it was a year We have several dealers experimenting with it. The is expected to continue to trade with- crease to 1.4 percent in 2020. full of positive, upward growth positioning the industry model requires a few more bays than our base model in a range of 75 to 80 cents against “This will weigh on aggregate eco- for continued growth in the year ahead. because repairs will keep the cars in there longer. the U.S. dollar in 2019, according to nomic growth because consumption For the most part we can provide better service to the the BDC. is more than half of the economy, as What are your expectations for 2019 in terms customer by avoiding it because a lot of our stores have Meanwhile, the energy-producing measured by gross domestic prod- of franchise growth for your company? three bays and some only have two. So if you start doing regions of the country are coping uct,” Mr. Alexander said. Coming up on the new year, we are expecting to open repairs, they tend to leave the car in longer, it takes lon- with low oil prices and the manufac- Household spending has been driv- 18 new stores in 2019 and expect same-store growth on ger and everything else, so it would reduce the amount turing sector is facing the prospect of ing economic growth over the last the upwards of 10 to 15 percent. of tires you could install in that same time period. further job losses and a pullback in several years but will ease in the face We’re nding that, unless you have more room — it investment, according to the Board. of high household debt loads, rising Are any of those new stores going to open in also requires certi ed guys out there — it’s really a dif- “A combination of rising interest interest rates and soft wage growth, new markets? ferent model. So far I haven’t seen any evidence that it rates, tightening regulation, weaker according to the Board. Yes, we’re actually opening in the Georgia market mixes well with what we do. household spending and demograph- Meanwhile, business investment in around the Columbus area, which is a brand new market We have one particular franchisee that is doing well at ics will temper the growth outlook for machinery and equipment stalled in for us. The majority of them will be in new towns. … it, but he is expanding his bays and they really got a han- the housing market through 2019 and the second quarter of 2018, Deloitte maybe four will be in existing markets because some dle on that part of the business. We have a couple that are 2020. However, prices are expected said, but capacity pressures should en- (franchisees) will be adding an additional store within doing pretty good on the shop revenue side. to stay high and affordability remains courage businesses to invest more. the same perimeter. The overall majority are de nitely But we think — and we can’t prove it yet but we’re a concern,” the Board said. Deloitte predicted investment spend- in new markets. ... watching the numbers — we want to make sure it doesn’t ing in machinery and equipment would We really are interested in expanding our footprint. impede upon our tire sales growth because that really is Employment increase about 8 percent in 2018 but We’re largely a Southeastern business. Most of our our business model and how we want our franchisees to that growth would slow to around 3.2 stores are south of the Mason-Dixon and so we would make their money. As in the U.S., an aging workforce percent in 2019 and to 2.4 percent in and new technology are transforming 2020. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, January 21, 2019 • 9

AUTOMOTIVE SERVICE Induction heating loosens frozen fasteners By Dan Marinucci This tool features interchangeable heating he induction-heating tech- elements called ‘work coils’ that directly nique saves technicians time Tand money during the cru- apply heat to the frozen fastener. cial-but-challenging task of loosening frozen fasteners. Here’s how it works. it’s 200 to 300 degrees hotter than so and then try to loosen the nut. An induction heater is an electri- the bolt or stud. You may be surprised how little cal device that applies highly con- Usually, this is enough to break heat it really takes to do the job — centrated heat onto a stuck or rusted the corrosive bond between nut and when that heat is concentrated in the fastener. The proper amount of heat bolt. He said the inductive-heating right place. expands a frozen nut, breaking the technique simply excels at focusing corrosive bond between it and a bolt heat on the nut itself. Dan can be reached via e-mail or stud. I haven’t had to heat anything cher- at [email protected]. His

Experience shows that induction ry red with the Mini-Ductor. Instead, previous columns are available at Photo courtesy of Induction Innovations www.tirebusiness.com. heating loosens frozen fasteners I apply heat to it for 10 seconds or The Mini-Ductor ‘work coil’ heat an oxygen sensor. more neatly and ef ciently than a traditional oxyacetylene torch does. And unlike a common torch, this technique doesn’t burn any materi-

Dan Marinucci is a freelance automotive service writer and former editor of two automotive service magazines.

als near the frozen fastener. The most-popular tool of this type is the Mini-Duc- tor from Induction Innovations (www. theinductor.com). ASSOCIATE DEALER PROGRAM Sources who have used this induction heater extensively sing its praises, calling it an essential tool. Although many service personnel already are aware of it, others I encounter are not. This tool features interchangeable A Powerful new Program to ACCELERATE Profits heating elements called “work coils” that apply heat directly to the frozen With the Maxxis Accelerate program working for you, your business will gain a fastener. Changing from one shape or strong competitive edge in a marketplace that rewards value. A brand born of size work coil to another only takes a moment; it requires no tools. performance, Maxxis supports your ability to build profit with a product line The selection of work coils within the Mini-Ductor tool kit enables you can be proud to offer. a tech to apply heat ef ciently to a wide range of fasteners, ttings and As a Maxxis Accelerate dealer, you will have unlimited access to the support of bearings. I have used these work coils on a Global Tire Manufacturing leader. Sign up and accelerate your success today! strut and shock-absorber hardware, exhaust nuts, brake-line ttings, oxygen sensors and wheel nuts. • Dealer Locator The induction-heating technique eliminates the potential re hazard • Monthly and Quarterly Retail Promotions of the cutting torch’s open ame. • Maxxis Branded Point of Sale materials What’s more, it doesn’t harm ad- • Quarterly and Annual Bonus rewards jacent parts or materials the way a cutting torch does. That’s because • Maxxis Wearables and promotional Items induction heating method heats only electrically conductive metals such as iron and steel. www.maxxisaccelerate.com So this method won’t harm rubber, plastic and fabric materials near the frozen fastener. Have you spent any time wield- ing a torch or watching one of your techs use one? If so, then you appreciate how dif cult it can be to heat a frozen fastener without damaging anything near it. (A tech may even have recruited you to play reman with a moistened shop towel.) Another disadvantage of a traditional torch is its tendency to heat both a frozen nut and its “compan- 0000 0000 0000 0000 ion” bolt or stud. Users often aggra- vate this condition by heating the Maxxis Authorized Dealer parts up to a bright red color. An engineer explained to me that the key is heating the nut itself until 10 • January 21, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com COMMERCIAL TIRE SERVICE Expect strong year in commercial truck tire market By Peggy J. Fisher will increase over 7 percent nation- ally this year. an you believe it? It’s 2019, a In addition, more carriers will of- brand new year. What hap- fer a minimum weekly pay varying Cpened to 2018? It seemed to from $700 to $1,200 per week de- just whiz by. Do you feel that way, too? pending on the type of freight hauled, In 2018 business for the trucking region of the country and equipment industry and commercial tire dealers used. was great. The economy was boom- To improve driver retention, carri- ing, tractor and trailer sales broke ers also will try to maintain stronger records and freight carriers hauled bonds with drivers through compa- truckloads of revenue to the bank. ny apps, improved communications and special activities for drivers. Shippers and carriers also will be working together to cut wasted time Peggy Fisher at docks in order to increase driver is president of productivity and maximize the lim- TireStamp Inc. ited supply of drivers. and is based in It will take years to get to a wage Fleets are addressing the driver shortage in part, by increasing pay. Troy, Mich. level that starts to attract people to Wages and salaries are expected to ciations projects a 35.6-percent in- spect, inadequate home time and poor truck driving who wouldn’t have con- increase 3.3 percent in 2019. crease in tonnage to 21.7 billion tons equipment, which results in low job sidered this career in the past, but at Increases in wages usually lead to in 2029 versus 2018. satisfaction. least the industry is on the right road. The year was packed with indus- ination. However, wages are creep- It’s no wonder the truckload seg- It will take strong freight rates to con- try mergers and acquisitions, esca- ing higher, not accelerating quickly, Driver shortage ment of the industry has a 98-percent tinue to support these wage increases. lating trade wars, natural disasters so ination seems to be contained turnover rate. and, oh, yeah, Meghan Markle mar- for the most part. The driver shortage has been a top In 2017 and throughout 2018, the Fuel prices ried her prince charming. So much The Federal Reserve described eco- concern for eets for several years, economy and the freight environ- intrigue, stress, devastation, nan- nomic activity as “strong” and raised and it has ranked as the No. 1 con- ment really started taking off, and In October last year, the prices of cial gain and romance. What a year. interest rates for the fourth time in cern for the past two years. Last year carriers were able to raise rates and gasoline and diesel spiked to a four- But what can we expect in 2019? 2018 in December in an effort to keep the truck driver shortage swelled to make good money. With this extra year high, according to the Depart- Will this all come to an end or will ination under 2 percent. This move a record 296,311, according to FTR revenue, they are now able to in- ment of Energy. this year be equally as stressful, suc- will nudge up interest rates for credit Transportation Intelligence. crease driver wages and really ad- Diesel averaged $3.365 a gallon, cessful and entertaining? cards, adjustable-rate mortgages and The root cause of this problem dress the driver issue. and gasoline reached $2.86 a gal- I’ve dragged out and dusted off home-equity lines of credit. dates to 1980 when the trucking in- Almost all for-hire carriers have lon. However, by early December, my crystal ball and once again will At this point there is no need to wor- dustry was deregulated. Prior to de- raised their per-mile pay rate, and gasoline prices dropped below $2 see what it reveals. ry about the economy. GDP growth regulation, truck drivers were paid most offer signing bonuses. Last year a gallon in 20 states and averaged will slow to 2.7-percent as the effects very well. these bonuses increased 280-400 per- The economy of last year’s tax cuts wane, but there After the industry was deregulat- cent depending on the industry seg- is little chance of a downturn this year ed, truck driver wages stagnated as ment (van, refrigerated or atbed). Let’s rst look at the economy, despite the threats of trade tensions, ination and other comparable jobs Many eets are addressing the un- because this is what drives trucking rising interest rates and higher costs. continued an upward climb. With in- evenness of truck driver pay caused and your commercial tire business. The strong dollar and tariffs also tense competition in the industry, truck by long delays at docks, running out Last year market conditions for could weigh on the economy as well driving became a career of high miles, of driving hours due to traf c jams, freight carriers were the best ever. if President Trump follows through long hours, and for eets, low margins. weather delays, equipment problems The economy was hot and grew at on his trade threats, but it looks as if If trucker wages had kept up with and other uncontrollable circum- $2.451 across the country, while a rate of 3 percent for the year. This the U.S. and China will work things ination after deregulation, a driver stances by offering drivers guaran- diesel dropped to an average per was a big improvement over 2017 out and the global economy will be would be earning more than $100,000 teed weekly minimum pay or a guar- gallon price of $3.207 as the effect when gross domestic product (GDP) spared a trade war. a year. Instead, in 2016 the average anteed annual salary. of a bear market in crude oil trickled grew 2.3 percent. driver took home only $53,000. Last year, driver pay increased down to motorists and eets. In fact, our current economic Freight rates In 2004, federal rules changed for more than 11 percent, the highest year For the year, diesel averaged $3.185 recovery coming out of the 2008- determining a driver’s maximum for pay increases on record. These pay a gallon in 2018 and is forecast to hold 09 Great Recession (now lasting 112 Consumer spending, construction hours of service in a day: 11 hours increases will continue into 2019 be- fairly steady this year at an average months) is the second longest on re- and factory output are the three main driving in a 14-hour period. The cause for-hire driver pay still lags sig- $3.207 a gallon. Gasoline averaged cord. It most likely will eclipse the sources of freight demand. All three new rules said that the 11 hours be- ni cantly behind what private eets $2.747 a gallon last year, and this longest U.S. economic expansion of of these sectors are doing well. gin the moment a driver gets behind pay their drivers and the pay people year should average just a bit higher 120 months set between March, Factory output grew a strong 2.6 per- the wheel and includes time sitting, earn in other competing industries. at $2.755 a gallon. 1991 and March 2001 since growth cent last year and is expected to grow waiting at a loading dock. Because It should also be noted that many in GDP for 2019 is expected to be a 2.5 percent this year. Housing starts drivers can’t drive as long, more of owner-operators have sold their trucks Truck/trailer sales good 2.7 percent. totaled 1.26 million in 2018, while 1.32 them were needed and thus began to become company drivers due to the Unemployment for 2018 fell to 3.7 million are expected this year. the driver shortage. higher pay and the attraction of new Last year was record-setting for percent, the lowest rate since 1969. With consumer spending up, we There are also a few factors that equipment. truck and trailer orders. Truck and This was a continuing drop from 4.4 have the trifecta of freight gener- have aggravated this situation. The Unless the economy stalls or de- trailer manufacturers were lam- percent in 2017 and is expected to ation that will continue strong de- average age of drivers is 52, and re- clines, there is going to be pressure basted with orders that broke many continue to decline to 3.4 percent in mand for freight hauling and a busi- tirement accounts for 49 percent of on driver pay and rates through monthly sales records. 2019. ness environment marked by tight the projected future need for driv- 2019. It is expected that driver pay See What, page 11 In fact, the country is considered capacity and favorable rates. ers, while only 20 percent of drivers to be at full employment now since Last year there was a point when are in the 20-34 age bracket. there are more job openings each there was more freight than there Drivers have to be at least 21 years month than there are people look- were trucks and trailers to haul it. old to cross state lines, which elimi- ing for jobs, which is a situation we The industry actually was at full nates trucking as a vocation for new have never seen. That explains why capacity. high school graduates. The federal you are having trouble nding tech- This was the perfect environment mandate that requires truckers to use nicians, sales people and other perfor raising freight rates, and every electronic logging devices (ELDs) that sonnel for your business. carrier did. Freight rates rose about kicked in last April reduced the driver Salaries and wages grew 3.1 per- 13 percent in 2018. It is expected pool by 5 to 10 percent. cent in 2018. This robust job market that 2019 will be another strong year In addition, trucking competes and lower taxes will continue this of rate increases. with manufacturing and construc- year and are expected to result in Tight capacity will continue this tion for workers. However, these 3.5-percent more consumer spend- year since new truck, tractor and trail- other industries have a much eas- ing. er purchases are mostly for replace- ier time attracting workers than Since consumer spending accounts ment not eet expansion, because car- trucking, which can require weeks for 70 percent of the U.S. economy, riers are having an extremely dif cult on the road at a stretch, an average it looks like we are de nitely in for time nding drivers. work week of 65 hours and a work After record sales in 2018, truck and tractor sales look to be strong again another good freight-hauling year. The American Trucking Asso- environment that provides little re- in 2019. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, January 21, 2019 • 11 COMMERCIAL TIRE SERVICE What will impact the commercial trucking industry? Continued from page 10 trucking industry raised its freight of their entire portfolio of vehicles In fact monthly Class 8 orders rates dramatically, too. for sale. OEMs will have to meet an were above 40,000 units eight months It’s de nitely possible that another overall fuel-ef ciency rating for those during the year and broke order re- round of price increases will occur combined vehicles to avoid being hit cords. (Orders of over 40,000 Class 8 during the rst half of this year. The with penalties for noncompliance with trucks are usually rare.) only thing that may stall them is tire the new standards. Fleets continued to order a record makers’ fear that their competitors To do this, battery-electric trucks number of trucks to secure remaining won’t raise their prices, and they will with zero emissions will earn emis- build slots in 2019 since freight vol- lose market share. But it seems that sions credits that allow truck manu- umes are expected to be healthy well when one blinks, they all follow suit facturers to market and sell more con- into the second half of the year. soon after. ventional diesel trucks as well. At the end of November, Class 8 The acceptance of electric trucks orders for the previous 12 months Technology trends has been hampered due to their limited totaled around 500,000 units, and range (under 500 miles), the weight and the build backlog remains at a record The trucking industry never has been space requirement of the batteries and volume with only a few build slots re- known for rapid change, but today mul- their need to be recharged — which remaining for 2019. tiple technologies are threatening to dis- quires a special charging infrastructure This means that before 2018 was rupt this very traditional industry. that is necessary to guarantee recharg- over, most of the manufacturing ca- 2019 could be the year Congress nally addresses the crumbling U.S. The rst, automation, is progressing ing a vehicle away from its home base pacity for new Class 8 trucks for infrastructure. steadily and is powered by arti cial in- — and the two to three hours required 2019 already was sold. The 2019 breathe easily again. The crumbling U.S. infrastructure telligence and advanced safety systems for a recharge versus the 20 minutes it forecast for Class 8 truck shipments After much saber rattling and tweet- is something that the trucking indus- such as radar, lidar and digital camer- takes to refuel a diesel rig. is 350,000. ing throughout most of the year, Pres- try, along with every other motorist in as. This technology will improve fuel You can see smaller electric trucks Trailer sales also set records. It is ident Trump enacted new tariffs on the country, wants the government to economy, driver comfort and produc- on the road now in pickup and deliv- projected that when the counting is more than 5,700 products imported address. tivity in addition to attracting more ery operations where they run low completed, 310,500 trailers were pro- from China (including steel, aluminum Congress has been at an impasse on drivers to the profession. It also is ex- mileage and come home every night duced in 2018, an all-time annual re- and every type of tire) worth an esti- this subject for years since it cannot pected to reduce or eliminate the 94 for charging. This trend is being fu- cord. This year also should be a good mated $200 billion. agree to come up with a way to pay percent of traf c accidents caused by eled by e-commerce and the nal trailer sales year, with 310,000 units (The Economic Policy Institute for the billions of dollars needed to human error. mile delivery that is gaining in pop- expected to be built. for the Alliance for American Manu- rebuild the nation’s roads and bridges Legislation relating to autonomous ularity. During the rst half of last year, facturing has estimated that the U.S. due to its reticence to levy more taxes. commercial vehicles is lacking as Con- When will you see electric Class 8 suppliers had a tough time providing trade de cit with China has cost the (The current highway authorizing law gress is including only passenger vehi- trucks on the roads? Volvo group will the volume of components needed for U.S. about 3.4 million jobs between expires in 2020.) cles in its deliberations. But this should be bringing them to the U.S. market the large volume of new trucks being 2001, when China entered the World However, 2019 promises to be the be resolved in the next four to six years. in 2020, and Nikola Corp. plans to built. If you had a hard time sourcing Trade Organization, and 2017. The year that something actually may get Other issues that pertain to the driv- begin limited production of its hydro- replacement truck tires, this is why. tariffs were Mr. Trump’s way of cor- done. The White House intends to er in an autonomous vehicle have to gen-electric Class 8 model by 2021 recting this situation.) promote a robust infrastructure agenda be addressed, too, such as how much that has an operating range of 500- Government impact The tariffs started at 10 percent on and will expect Congress to produce driver focus is required while the ve- 1,000 miles and can be re lled within Sept. 24 and were scheduled to rise to legislation that would ensure long-term hicle is in autonomous mode? Is time 20 minutes. While we all think the economy 25 percent on Jan. 1 this year. funding for roads and bridges. in autonomous mode counted in terms It’s also planning on having more has the biggest impact on the truck- China immediately retaliated by Early indications are that Congress of hours-of-service? than 700 hydrogen stations across the ing industry, 2018 showed us that, in imposing tariffs on $60 billion of U.S. is willing to work on infrastructure as While we will see autonomous cars U.S. and Canada with the rst 14 sta- reality, the federal government holds goods (including tires, synthetic rubber this issue has eclipsed immigration as on the road perhaps as early as 2021, tions up and running by 2021. the biggest sledge hammer. and butadiene). And so a global trade the policy mission du jour in Wash- autonomous trucks are something else. The instant torque of electric vehi- The Trump administration’s rene- war was in the making that would have ington. We can only hope. You will not see Level 5 autonomy, cles can be brutal on tires. In fact tires gotiation of the North American Free had a tremendous effect on the U.S. with no driver in the truck, probably can wear out up to 30-percent faster Trade Agreement (NAFTA) dragged on economy and trucking. Tire sales for 20-25 years. In fact, some people on electric vehicles. last year, and at many times it looked as Fortunately cooler heads prevailed believe we will always have a driver We will see tires designed speci - if an agreement involving the U.S., Can- at the Group 20 Summit in Argenti- According to the U.S. Tire Manu- in the truck. cally for electric vehicles that will re- ada and Mexico was impossible. na in December, and both President facturers Association (USTMA), me- We will probably see Level 4 au- duce the wear from high torque. They At stake was the health of the econ- Trump and Chinese President Xi Jin- dium truck tire shipments saw robust tonomy in Class 8 trucks — in which also will have to be much less rolling omies of all three nations and nearly ping pledged to halt the imposition of gains in 2018. an automated driving system per- resistant to help conserve energy and $385 billion in goods that the Amer- new tariffs for 90 days as both coun- OE truck tire shipments rose a forms all aspects of driving even if therefore increase vehicle range and ican trucking industry hauls between tries negotiate a lasting agreement. whopping 15.8 percent, to 6.3 mil- a human driver does not respond ap- have greater carrying capacities to the U.S. and Mexico and $335 billion This agreement should address the lion units from 5.4 million in 2017, propriately to a request to intervene support the additional vehicle weight in trade between the U.S. and Canada. imbalance of trade that exists with while replacement truck tire ship- — by 2030. from the batteries. Had all three parties not come to an China, which exports $505 billion ments increased 7.8 percent to 21.2 Tires will be built speci cally for Fleets will demand small tire sizes agreement, loss of this freight would of goods to the U.S. while the U.S. million units from 19.7 million. autonomous trucks. As you can imag- for their electric trucks operating in have had a devastating effect on the exports only $130 billion to China, The USTMA has not released its ine, a at tire on an autonomous ve- pickup-and-delivery, nal-mile appli- economy and the trucking industry. and address Chinese trade practices forecast for 2019 yet, but it is safe to hicle could have fatal consequences. cations. These tires also will need to be With the new U.S.-Mexico-Cana- regarding intellectual property theft, assume that OE shipments will be Therefore several things need to low noise generators, which is especial- da Agreement (USMCA) taking the non-tariff barriers and forced tech- equally as high if not a bit higher, be considered in developing tires for ly important for night-time delivery. place of NAFTA, free and fair trade nology transfer. This should help en- while replacement truck tire ship- autonomous trucks, including the use The third technology is connectiv- is assured, and the country (and spe- sure good economic growth for both ments will be slightly lower due to of smart sensors that detect the condi- ity, which is enabled through telemat- ci cally the trucking industry) can countries in 2019. the small drop in economic growth tion of the tires and the road, run-at ics. Tires that are constantly moni- that will result in slightly less freight technology, advanced safety controls tored remotely will increase vehicle hauled and truck miles traveled. to handle a rapid air loss (blowout), safety by enabling predictive tire/ve- Truck tire prices were stable through- and the required use of tire pressure hicle maintenance through real time out the rst half of 2018 but begin- monitoring systems. communication of the vehicle and tire ning in September at least six tire The second technology is electric sensors not only to the driver and the manufacturers (Bridgestone, Giti, vehicles. Electric vehicles are 10 times eet but to a control center monitor- Goodyear, Kumho, Michelin and Toyo) cheaper to fuel than internal combus- ing the driverless autonomous truck. announced price increases effective be- tion engine vehicles. They have 20 Well, as you can see my crystal ball fore or by Jan. 1. moving parts versus 2,000 in a tradi- has revealed that 2019 is going to be These price increases ranged from tionally powered truck. another good year for the trucking in- 2 to 10 percent and were necessary to The combination of increasing gov- dustry and for commercial truck tire keep healthy operating margins. ernment regulations to reduce emis- dealers. The reasons given for these in- sions, the desire to reduce fuel costs But technology is going to bring dis- creases were: rising cost of materials, and rapid gains in battery technology ruptive and innovative changes that will including oil and steel, which since is creating an ideal environment for affect your business. Your challenge is December 2017 had increased 21 electric vehicles. to keep up with the changing environ- percent and 33 percent, respective- The federal government’s heavy-du- ment and capitalize on the opportunities ly; transportation; and labor. Ocean ty fuel-economy standards that will it presents. They probably will require freight rates reached a two-year peak become law in 2025 will “grade” truck solutions you haven’t thought of yet. Truck tire shipments saw robust gains in 2018. last year, and you now know that the makers on the overall fuel ef ciency Happy New Year. THANKS FOR VOTING OUR

CONSUMER TIRES #1 FOR PROFITABILITY There are plenty of tires to choose from, but

there’s only one that can keep your business—

and customers—moving forward. Sumitomo tires

don’t just perform well, they rank well, too. For

the third year in a row, our consumer tires were

ranked #1 for dealer pro tability.* But don’t take

our word for it, believe your bottom line.

See why at SumitomoTire.com.

*Survey conducted by Marketplace Insights on behalf of Tire Review for its 2018 Brand Study (August 2018 Sourcebook issue).

For what drives you. THANKS FOR VOTING OUR

CONSUMER TIRES #1 FOR PROFITABILITY There are plenty of tires to choose from, but

there’s only one that can keep your business—

and customers—moving forward. Sumitomo tires

don’t just perform well, they rank well, too. For

the third year in a row, our consumer tires were

ranked #1 for dealer pro tability.* But don’t take

our word for it, believe your bottom line.

See why at SumitomoTire.com.

*Survey conducted by Marketplace Insights on behalf of Tire Review for its 2018 Brand Study (August 2018 Sourcebook issue).

For what drives you. 14 • January 21, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com

SEMA-backed motorsports initiative in holding pattern By Miles Moore Senior Washington Reporter

WASHINGTON — The Specialty Equip- ment Market Association (SEMA) is considering its options in the 116th Congress after one of its major legis- lative initiatives — the Recognizing the Protection of Motorsports (RPM) Act — failed to pass during the 115th. Photo NASCAR by Whelen Series NASCAR President and CEO Jerome Galpin (left) shakes hands with Guy Sponsored by SEMA and backed Frobisher, senior project manager for Continental. strongly by organizations such as the Tire Industry Association (TIA), the SEMA is considering its options for the Recognizing the Protection of Mo- RPM Act of 2017 (H.R. 350) is de- torsports Act, which failed to pass before the end of 2018. signed to protect the right of Ameri- General to supply can car enthusiasts to convert standard in its certi ed con guration. the EPA’s authority to enforce against motor vehicles into racing vehicles. This ruling overturned nearly 50 individuals who install race parts ille- The bill, which had 150 co-spon- years of motorsports history and was gally on vehicles driven on public roads tires for NASCAR sors in the House of Representa- severely detrimental to the sport, and highways and the companies that tives, passed in the House Commit- SEMA said. market such products. This is called tee on Energy and Commerce, but When the RPM was first intro- tampering and is a clear violation of the did not advance beyond that stage duced, more than 200,000 support- Clean Air Act, SEMA said. Whelen Euro series despite its strong bipartisan support. ers of the motorsports industry wrote Converting street vehicles into ded- SEMA President and CEO Chris to Congress in support of the bill, icated race vehicles is an American PARIS — The NASCAR Whelen Euro that such a commitment reects the Kersting said in an interview that he according to SEMA. tradition dating back decades and one Series has selected General Tire to be “strong will both parts have to reach hoped the RPM Act still would pass Although H.R. 350 did not be- that has “negligible” environmental the series’ race tire supplier and of - new heights and further develop the Congress, perhaps as an attachment come law, SEMA still made signif- impact, SEMA said, noting that Cal- cial tire partner of Euro NASCAR for NASCAR Whelen Euro Series events, to an appropriations bill. icant inroads on Congress for the ifornia — which is known for having the next six years. reaching new fans all over the world.” That hope, however, was dashed bene t of its members, according the strictest emissions laws — ex- All cars racing in the European NA- NASCAR Whelen Euro Series in the government shutdown that en- to Stuart Gosswein, SEMA senior empts racing vehicles from regulation. SCAR championship will be equipped President and CEO Jerome Galpin sued over the disagreement between director, federal government affairs. SEMA estimates there are about with General Tire’s NWES GT slick called the deal a “huge demonstration President Trump and congressional “Important milestones were achieved 1,300 race tracks across the country, and wet tires, in size 11.5/27.5R15. of con dence in the NASCAR Whel- Democrats over whether to approve to protect Americans’ right to convert most catering to thousands of orga- Financial terms were not disclosed. en Euro Series and its potential.” $5.7 billion to build a wall along the street cars and motorcycles for racing nized amateur racing events that in- General Tire — a Continental A.G. Mr. Galpin noted that the series will U.S.-Mexican border. and the industry’s right to supply the volve converted vehicles. brand — replaces Michelin Motor- help Continental promote the General The RPM Act was introduced in parts that enable racers to compete,” Grassroots racing events represent sports as the series’ of cial tire sup- Tire brand across Europe. the 114th Congress in 2016 in re- Mr. Gosswein said. tens of thousands of jobs and billions plier. The NASCAR Whelen Euro Series sponse to assertions the U.S. Envi- “SEMA worked closely with Con- of dollars in economic activity, includ- “NASCAR Whelen Euro Series used BFGoodrich-brand race tires this ronmental Protection Agency made gress to con rm the Clean Air Act’s ing about $1.6 billion in annual sales and General Tire make ideal partners, past season, a change from the Miche- in 2015 that it had the authority un- original intent, that in the context of rac- of racing equipment, SEMA claims. not least because of the rich American lin-branded tires it used for the previ- der the Clean Air Act of 1970 to de- ing, vehicle conversions are legal along SEMA is evaluating a course of heritage we share,” Guy Frobisher, se- ous nine seasons. clare illegal modi cations to a motor with the sales of performance parts to action for the year ahead, based on nior project manager at General Tire The series’ 2019 schedule shows vehicle into a racecar if the vehicle’s be installed on these vehicles,” he said. the progress it made in the 115th Con- in Europe, said. 26 races spread over seven race week- emissions system no longer remains The RPM Act does not interfere with gress, Mr. Gosswein said. “It’s a fantastic opportunity for us ends at tracks in seven countries, plus to showcase our brand in this thrilling a non-championship mid-season all- and fast-growing motorsport setting. star race at an as-yet undisclosed street Indy series adds Cooper as sponsor What’s more, our engineers in the U.S. circuit in France. have developed a race tire that prom- The season opens with a dou- PALMETTO, Fla. — The promoter of the Road to Indy Indy Pro 2000 competitors next season will vie for a ises to meet the high expectations of ble-header race weekend April 13- “ladder” program has renamed the Pro Mazda series champion’s purse valued at $596,700 to progress to Indy the teams.” 14 in Valencia, Spain, and concludes the Indy Pro 2000 Championship presented by Cooper Lights, according to Andersen Promotions. The NASCAR Euro series start- Oct. 5-6 with another double-header Tires, reecting Mazda North America Operations’ The Indy Pro 2000 Championship will comprise 16 ed in 2008 as the Racecar Series weekend at Zolder, Belgium. withdrawal as the racing series’ principal sponsor. races at nine venues in 2019, starting March 9-10 on and gained NASCAR af liation in In between, the series will visit The Indy Pro 2000 Championship — which will con- the Streets of St. Petersburg, Fla., where all three levels 2012, becoming the Euro-Racecar the Autodromo di Franciacorta, Italy tinue to use the Tatuus PM-18 of the Road to Indy will be in NASCAR Touring Series. It became (May 11-12); Brands Hatch, England open-wheel chassis introduced action supporting the IndyCar the NASCAR Whelen Euro Series in (June 1-2); Autodrom Most, Czech Re- in 2017 and powered by a race there as well. 2013. public (June 29-30); Raceway Venray, 275-horsepower 2-liter Maz- “We are indebted to the tre- The series uses NASCAR-style rac- Netherlands (July 13-14); and Hocken- da-based racing engine — is mendous support of Mazda over ers — either a Chevrolet, Ford or Toy- heimring, Germany (Sept. 21-22). the middle step on the Road to the past nine years, but now, ota body with a 5.7-liter, 400 horse- Striking this deal with the NA- Indy ladder, sandwiched between the entry-level Cooper as the Road to Indy Presented by Cooper Tires legacy power V8 engine — competing on SCAR Whelen Euro Series will allow Tires USF2000 Championship and Indy Lights Present- continues to grow, we feel the time is right to introduce road-race circuits throughout Europe. General Tire to leverage its experience ed by Cooper Tires. a new look as we head into a new season,” Andersen The six-year agreement with Gen- supplying the Automobile Racing The ladder program, which also carries sponsorship Promotions owner and CEO Dan Andersen said. eral Tire represents a step forward in Club of America (ARCA), which rac- from Cooper Tire, is designed to support up-and-com- Cooper has been involved in the Road to Indy lad- Euro NASCAR’s exponential growth, es similar cars but predominantly on ing drivers as they progress toward competing in the In- der program since 2010 as a tire supplier and presenting the series organizers said, noting oval circuits. dyCar Series, including the Indianapolis 500. sponsor for the various ladder steps. General extends race deal at Talladega TALLADEGA, Ala. — Continental Tire the Amer- part of Talladega Superspeedway’s 50th an- General Tire #AnywhereIsPossible 200 at icas’ General Tire brand has extended its niversary celebration in 2019. Financial terms Pocono Speedway on May 31. “entitlement” sponsorship with Talladega Su- were not disclosed. Travis Rofer, director of marketing for perspeedway of the General Tire 200, a stop “General Tire has been an incredible part- General Tire, cited the “unmatched” fan on the Automobile Racing Club of America ner and we are thrilled to have them with us enthusiasm at Talladega as a key reason for (ARCA) racing series, for two more years. as we head into an exciting future,” Talladega General tire to continue its relationship with General Tire, also the of cial tire supplier Superspeedway Chairman Grant Lynch said. the track in east-central Alabama. of the ARCA Series, has been the entitlement General tire also is the presenting sponsor The 2.66-mile venue has hosted an ARCA sponsor of the General Tire 200 since 2016. for two more races: the General Tire 150 at race every year since the track’s initial season General Tire’s event sponsorship will be Charlotte Motor Speedway on May 23; and in 1969. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, January 21, 2019 • 15

Hankook steps up motorsports focus Tire maker secures supply agreements with open-wheel circuits

NEU-ISENBURG, Germany — Hankook in Monza, Italy, and concluding in Touring Car and FIA Formula 3 Eu- Tire Co. Ltd., which lost out last year October at a site and date yet to be ropean championships. to Pirelli Tyre for the 2019-23 Formu- announced. “We are proud to partner with a car la 1 race tire contract, has turned its The series will debut a new chassis maker that shares the same philoso- Renault Sport photo motorsports focus elsewhere, secur- — the Tatuus F.3 T-318 chassis, pow- phy of promoting aspiring motor- ing race tire supply ered by a 1.8-liter, sport talents,” Mr. Sandbichler said. agreements with four-cylinder tur- The championship winning driver The Tatuus F.3 T-318 chassis, four other open- bocharged engine will join the Renault Sport Academy, powered by a 1.8-liter, four-cylinder wheel, single-seat derived from the Re- a program designed to nurture talent- turbocharged engine, is new for 2019. racing series on two nault Mégane R.S. ed young drivers within the Renault continents. motor — in 2019. Sport Racing environment and help been clari ed for 2019. Michelin and German Touring Car Championship, In Europe, Han- The series has ap- them advance to more advanced rac- Giti Tire, respectively, were those se- which Hankook also supplies. kook is taking over proved 10 teams to ing series. ries’ suppliers last year. While the organizers of W Series as the exclusive race tire supplier campaign a pair of cars each. Hankook’s contract with Renault The new W Series — organized state their “ rm belief” is that wom- for the Formula Renault Eurocup, Hankook Motorsport Director Sport Racing will include sponsoring by British Racing & Sports Car Club en can compete equally with men in a series some classify as a “step- Manfred Sandbichler noted that this the Hankook Trophy for the series’ and sanctioned by the Federation In- motorsport, they contend an all-fe- ping-stone” path to Formula 1, and “long-term co-operation” with Re- top rookie driver. ternational de l’Automobile — has male series “is essential in order to more recently was named the suppli- nault Sport Racing expands the South Renault Sport Racing also oversees organized a six-race inaugural season force greater female participation.” er for the W Series, a new competi- Korean tire maker’s European mo- two companion series — FormulaNEC with a starting grid of 18 cars at each. The series is offering a purse of tion for female racers using Formula torsport commitment, which already in Europe and Formula Renault Asia The organizers are selecting the $1.5 million, with $500,000 going to 3 cars. includes supplying the DTM German — but their tire supply situation hasn’t 18 drivers from a group of over 100 the series winner. The series opens In North America, Hankook se- female drivers from 30 countries May 4-5 at Hockenheim, Germany, cured the race tire supply deal with who applied for a seat in one of and concludes Aug. 10-22 at Brands the Sports Car Club of America the 270-horsepower Tatuus T-318 Hatch, England. (SCCA) Pro Racing for the Formula Formula 3 cars. A jury of experts, “One major reason for our in- 3 Americas and Formula 4 United including former Formula 1 driver volvement is the fact that W Se- States Championships Powered by David Coulthard, is evaluating the ries is exclusively for women,” Mr. Honda, starting in 2019. (See sepa- candidates. Sandbichler said. “This is great, as rate story, below.) Among the nalists for a seat are it allows female drivers to develop The contract with Renault Sport Toni Breidinger, Sabre Cook, Court- in a professional environment with- Racing for the Formula Renault Euro- ney Crone, Natalie Decker, Cassie in the motorsport scene, which is cup is for “multiple” years and replac- Gannis, Shea Holbrook, Sheen Monk still male-dominated. es one Renault Sport Racing had with and Hanna Zellers from the U.S. and “However, we are not just thinking Michelin Motorsports for several years. Megan Gilkes and Taegen Poles of about the women in the cockpit, but The 2019 season will comprise 10 Canada. also want to ensure that female me- two-race weekend events at 10 re- Hankook will supply Ventus race chanics, engineers and team manag- nowned road-race circuits, starting Hankook is the of cial tire supplier for the inaugural 2019 season of the tires for the series, which will run ers get more opportunities in motor- April 12-14 at Autodromo Monza W Series, a competition for female racers. as a companion event to the DTM sport, too.” Hankook secures U.S. F3, Pirelli gains tment on F4 racing series contract Ferrari Monza roadsters LAS VEGAS — The Sports Car Club of America powered by a turbocharged four-cylinder Honda PARIS — Italian sports car maker Ferrari signed and built for the Monzas — size (SCCA) Pro Racing has designated Hankook Civic Type-R engine generating 240 to 270 horse- S.p.A. has tapped Pirelli Tyre as its OE 275/30R21 front and 315/30R21 rear Tire Americas as the exclusive race tire suppli- power. The F3 chassis also features more con g- partner for the launch of its Monza SP1 — provide the usual levels of stiffness, er for the Formula 3 Americas and Formula 4 urable aero components, increased impact safety and SP2 retro-inspired limited-edition comfort and performance that is synony- United States Championships Powered by Hon- structures and more sophisticated data acquisition. open-top two-seaters, the rst Ferrari mous with Ferrari, despite the 21-inch size da, starting in 2019. “Hankook is thrilled to support F3 and F4 as street cars with 21-inch rim diameter rim diameter, while also helping to save SCCA Pro Racing Vice President Steve Oseth the primary tire supplier,” Sooman Choi, Han- tires as standard equipment. weight. welcomed Hankook Tire as the series’ supplier, say- kook Tire’s vice president of marketing, said. These limited-edition models, which Pirelli said it modi ed the standard ing, “Their experience in other F4 championships “We are excited and eager to provide our state- represent Ferrari’s new “Icona” range of steel-wire bead package for the front and the F3 European Championship around the of-the-art racing tires to a series that is designed cars drawing on past in uences, reinter- tires, a change that trimmed weight by world means their products exhibit the durability to develop young American racing talent.” pret the “barchetta” style open-top sports more than 2.6 pounds. and performance demanded of a highly competitive As part of the F4 U.S. Championship schol- cars that competed in the Mille Miglia Ferrari said weight reduction — the cars series.” arship, Hankook also will present the F4 title and World Sports Car Championship have 100-percent carbon- ber bodies — Hankook will mesh well with the series’ oth- winner with two full sets of tires per event for events in the 1950s and ’60s. and the barchetta open-top con guration er technical partners, Honda, HPD and Onroak the season to progress into the F3 Americas The cars — the SP1 is the single-seat- “guarantee unique vehicle dynamics: per- and Ligier, he added. Hankook is replacing Pirelli Championship, starting with the 2018 F4 U.S. er with a tonneau cover, while the SP2 fectly balanced with no roll whatsoever for Tire North America as the series’ tire supplier. champion Dakota Dickerson. gets a second seat and pure, uncompromised sports-car handling.” F3 and F4 cars are single-seat, open- “We put extra effort into se- second roll hoop/cowl Both models are powered by Ferrari’s wheel racers. The U.S. F4 series specs a curing this sponsorship because in the back — debuted 6.5-liter V12 making 798 horsepower at Crawford F4-16 chassis and four-cyl- we believe in the future of for- at the Paris Auto Sa- a 8,500 rpm. Weighing in at about 3,300 inder Honda Civic R engine. F4 rac- mula racing in the United States,” lon in October. pounds, they have a rated 0-62 mph ac- ing debuted in North America in Danny van Dongen, founder of Han- The P Zeros celeration in 2.9 seconds and 124 mph in 2014; SCCA Pro Racing assumed kook’s motorsports division, said. that Pirelli de- 7.9 seconds. sanctioning in 2015. “We have a full range of competi- F3 is a new class that debuted tion sizes from 13 to 19 inches, but we in 2018 using a Ligier Craw- have previously only sponsored GT and ford JS F3 race car chassis prototype cars. Formula 3 and 4 really help us showcase everything our brand can do.”

A look at the Monza SP1 and SP2 open-top, two-seat Ferrari street cars. Hankook will supply tires for the SCCA’s F3, F4 series. 16 • January 21, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com

Hercules adds off-roading to motorsports portfolio

FINDLAY, Ohio — American Tire Dis- Hercules’ deal with Double Lucky gage with the passionate and loyal tributors Inc.’s Hercules Tires brand Racing is in addition to its continued off-road racing fan base and expose is expanding its motorsports engage- sponsorship of sprint-car racer Greg those enthusiasts to the outstanding ment with a deal to supply tires and Wilson and his team, Greg Wilson performance of the Hercules brand promotional support to a team gear- Racing, for the eighth year. via tires they can buy for their own ing up to compete in the Best In The Hercules said its Double Lucky light trucks or SUVs.” Desert off-road racing series. Racing deal re ects a desire to “en- Double Lucky Racing is competing in the BITD’s Pro Production Turbo UTV class with a Can-Am Maverick X3 side-by-side UTV using street-legal, DOT-approved Her- Hercules Tire photos cules Terra Trac M/T radials. The Hercules’ sponsorship of Greg Wilson is now in its eighth year. driving team is Kyle Chavez and Daniel Plaza from Yuma, Ariz. it sponsored Sara Burgess in the acts as a Hercules brand ambassador, “We’re condent this partnership Lucas Oil Off-Road Racing Series visiting tire shops and interacting with will help us prove the product on (LOORRS). the dealer base and consumers to pro- some of the toughest terrain in the Hercules will support both of its mote the brand at a grassroots level. country,” Hercules said. 2019 sponsored teams with an “acti- Awarded the inaugural Jason 2019 actually will be Hercules’ sec- vation” trailer at select races through- Johnson Sportsman of the Year ond season with Double Lucky Rac- out the BITD and World of Outlaws Award in 2018, Mr. Wilson has won ing, but the rst as an ofcial sponsor (WOO) Craftsman Sprint Cars Se- more than 100 sprint car features in and supplier. Last year the team won a ries this year that will allow Hercules his career and is a two-time All Star championship in the CODE Off Road to amplify brand exposure by having Circuit of Champions Sprint Car series in Mexico with backing from a a physical presence at events. Points Champion. Hercules distributor there. Mr. Wilson runs Hoosier-brand Hercules also provides Strong Double Lucky Racing is using Hercules Terra Trac M/T radials on its Can- This is Hercules’ second foray into race tires on his racer, as per the se- Guard HRA truck tires for Mr. Wil- Am Maverick X3 side-by-side. the off-road racing realm. In 2016 ries’ rule, but throughout the season son’s sprint car hauler trailer.

Here’s a summary of tire companies that are Maxxis: Formula Drift; LOORRS; TORC; Cup; Ultra 4/KOH; NASA: SCORE; BITD; participating in various racing series. Ultra4/KOH; W.E.Rock; DirtRiot; Time At- drifting; Super GT (Japan); Super Formula (Underlined items indicate those series that tack; SCCA-Autocross; NASA: Rally Amer- Championship Series (Japan) have open tire competition.) ica; various rally/rallycross events; Lucas Oil Midwest Series * Dunlop racing activities in Europe and the Achilles Tire: Formula Drift Americas are handled by Goodyear’s Dunlop Michelin: IMSA WeatherTech SportsCar Motorsport Division, which designs and builds Atturo Tire: LOORRS; SCORE; Lucas Oil Federal: Legends Racers; drifting Challenge; IMSA – Michelin Pilot Challenge; Dunlop car racing tires at the rm’s plant in Midwest Series FIA-WEC; FIA-WRC; FIA-ERC; FIA Formu- Hanau, Germany, and motorcycle tires in Mont- Firestone: See Bridgestone la-E; Super GT (Japan); Rally-raids lucon, France. BFGoodrich: Battery Tender Mazda MX-5 Following the dissolution of the Good- Cup; LOORRS; NASA; SCORE; SNORE; in- Giti Tire: Formula Masters (China); Asian Nexen: Formula Drift year-Sumitomo Rubber Industries Ltd. (SRI) ternational rally-raids (Dakar Rally, etc.) Formula Renault; Formula 3 (Asia); Formula global alliance in 2015, SRI now handles Dun- Thunder F5000 (Australia); Pikes Peak hill- Nitto: Formula Drift; SCORE; Ultra 4/KOH lop-related racing activities in Asia/Paci c. Bridgestone: NTT IndyCar Series (Fires- climb tone brand); Super GT (Japan) Pirelli: FIA Formula 1; FIA Formula 2; FIA For- RACING SANCTIONING BODIES Goodyear: NASA; NASCAR — Sprint Cup, mula 3; FIA-WRC; FIA-ERC; Formula 4 (Germa- Continental Tire: Xnity Series, Camping World Truck Series, ny, Italy, U.K.); Pacic Formula F2000; Blancpain American Speed Association (ASA); Automo- y General Tire — ARCA/Menard’s; NA- K&N Series, Pinty’s Series (Canada), etc.; GT Series; ADAC GT-Masters; GT4 European Se- bile Racing Club of America Inc. (ARCA); Best SCAR Whelen Euro Series; BITD; LOORRS; NHRA – Top Fuel, Funny Car and Pro Stock; ries; Blancpain GT World Challenge; Pirelli GT4 in the Desert (BITD); CARS Tour; Champion NORRA; MORE; SCORE. IHRA; SCCA road racing; various sprint car America; SCCA Trans-Am; GT3 Cup Trophy Racing Association (CRA); Deutsche Tourenwa- series; off-road; rock-crawling USA West; Porsche Club of America Champion- gen Masters (DTM); Fastrak Racing Series; Fed- Cooper Tire: ship; Ferrari Challenge; Lamborghini Super Tro- eration Internationale de l'Automobile (FIA); yyAvon — various British road-racing, Hankook: Formula Drift; SCCA (various class- feo; Brazil stock car; Macao F3 and Touring Cars FIA-European Rally Championship (ERC); hill-climb, rallycross and vintage series es); Formula 3 Americas; Formula 4 United FIA-World Endurance Championship (WEC); yyCooper — Indy Lights; Indy Pro 2000 States Championship; NASA-USTCC; 24H Radar Tires (Omni United): SCORE; various FIA-World Rally Championship (WRC); Formu- Championship; USF2000; British Formula 3; Series; DTM German Touring Cars; FIA F3 off-road; Lucas Oil Midwest series la Drift Holdings L.L.C.; Formula SAE: Indy- FIA World Rallycross Championship (Europe/ European Championship; Formula Renault Eu- Car L.L.C.; International Hot Rod Association international); Americas Rallycross Champi- rocup; Super GT (Japan) Specialty Tires/American Racer: ACT (IHRA); International Motor Sports Association onship; drifting; TORC Championship Stock Car Racing; GP4; Leg- L.L.C. (IMSA); Le Mans Series (LMS); Lucas y Mickey Thompson — LOORRS; drag Hercules: BITD ends-Dirt Cars; Pacic Challenge Series; Super Oil Off Road Racing Series (LOORRS): Mojave racing (NHRA, IHRA, etc.); NMCA; NMRA; Cup Stock Cars; USMTS; USRA; Xtreme Sprint Off Road Enthusiasts (MORE); National Auto land speed competition; off-road Hoosier (Continental Tire subsidiary): ARCA/ Series; and other dirt and paved oval track series Sport Association (NASA); National Associa- CRA, SuperTrucks, Midwest; ASA; CARS tion of Stock Car Racing (NASCAR); National DMack Tyres: Rally America; FIA-WRC Tour; NASCAR Whelen Modieds, West, etc.; Tensor Tire: Ultra 4/KOH Hot Rod Association (NHRA); National Muscle WOL Sprint Cars, Midgets; Fastrak; various Car Association (NMCA); National Mustang Dunlop* (Goodyear): FIA-WEC; European Le- dirt and paved circle track series; F2000 Cham- Tireco Inc.: (Milestar brand): SCORE Racers Association (NMRA); National Off Road Mans Series (LPM2 and GT classes); British Tour- pionship Series; NASA; SCCA road racing and Racing Association (NORRA); SCORE Interna- ing Car Championship; Mini Championship/U.K. solo; SCCA Super Tour; SCCA Formula Vee; Toyo: BITD; SCORE; LOORRS; Rally-raids; tional; Southern Nevada Off-Road Enthusiasts SVRA; Legends-Thunder Roadsters; NHRA SCCA national events; NASA (various series); (SNORE); Sports Car Club of America (SCCA); Dunlop* (Sumitomo Rubber Industries): Vir- (various classes up through Pro Stock); IHRA; NHRA; Ultra 4/KOH; Lucas Oil Midwest Series Sportscar Vintage Racing Association (SVRA); gin Australia Supercars Championship (Aus- USAC Gold Crown; Lucas Oil Dirt Racing; United Sprint Car Series (USCS); United tralia); Dunlop Development Series (Australia); karting Tri-Ace Tires: BITD; NORRA; SCORE; States Auto Club (USAC); United States Mod- Super GT (Japan) SNORE i ed Touring Series (USMTS); United States Kenda: Lucas Oil Midwest Series Touring Car Championship (USTCC); Weath- Falken: Formula Drift; Optima/Ultimate Yokohama: Porsche GT3 Cup Challenge erTech SportsCar Championship; World of Street Car Kumho: SCCA road-racing, solo, etc. (U.S. and Canada); FIA World Touring Car Outlaws (WOL). At Tire Business, we’re turning over a new page and growing our sta so your company can have a successful New Year.

SALES SOUTHEAST WESTERN EAST & MIDWEST DIRECTOR SALES MANAGER SALES MANAGER SALES MANAGER

Christine Peter John Bruce Zernick Bianchi Hickey Miller

[email protected] [email protected] [email protected] [email protected] 330.865.6108 312.802.5201 260.437.8502 313.737.6665

HAPPY NEW YEAR, from the new Tire Business Advertising Team 18 • January 21, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com

Porsche Club renews contract with Pirelli Agreement extends through 2021

ROME, Ga. — Porsche Club of America Pirelli will supply the spec tire of the Inc. (PCA) has renewed its relationship PCA Club Racing National Champion- with Pirelli Tire North America for ships for GTC3 through 7 (class 7 being three more years, an agreement that a new addition) and the PCA Clubsport commits Pirelli to sponsor and/or sup- Series. As well as providing tires, Pire- ply six national programs PCA orga- lli personnel also will provide track side nizes annually for its members. support and advice to members about With more than 130,000 members in how to get the most out of their tires. 145 regions throughout North Amer- Porsche Club of America Executive ica, the PCA is considered the largest Director Vu Nguyen called Pirelli an Porsche owners club in the world. “exemplary corporate partner.” Pirelli has been allied with the PCA Orazio Mastracchio, Pirelli’s NAFTA since 2014 when it agreed to supply the customer racing manager, said the partner- Pirelli Tire North photo Tire America Pirelli Pirelli Tire North America will sponsor a new series this year, the Pirelli GT4 America. club’s various club racing championship with PCA reects the close relation- ships and expanded the relationship in ship between Pirelli and Porsche. 2015 for three additional years. The association underlines Pirelli’s Financial terms of the contract were commitment to its “perfect t” strate- Pirelli extends sponsorship not disclosed. gy — i.e., developing tires speci cally As part of the enhanced agreement, for particular Porsche models, which Pirelli will sponsor six national programs: means Pirelli is original equipment for a PCA Club Racing; PCA High Performance variety of Porsche models from the iconic with North American series Driver Education; PCA Autocross; Porsche 911 to the latest Macan. ARLINGTON, Neb. — The Pirelli World Challenge road-rac- Panoz Avezzano GT4; etc. In all, 36 models have been Parade; and PCA Treffen driving tours; and Pirelli also pointed out that its Collezi- ing series is morphing into the Blancpain GT World Chal- approved for competition. the “Werks Reunion” at Amelia Island. one range of vintage tires, which com- lenge next year, but Pirelli Tire North America will con- The GT4 class will run two types of races — Sprint These events are designed to bring bines period looks with modern technol- tinue as the series tire supplier and key sponsor. for single drivers and a 50-minute format and SprintX together the wider Porsche-driving ogy, equips more than 30 classic Porsches The tire maker also will be the main sponsor for a for two-driver teams and a 60-minute format. Both for- community for days of fun, competi- as well, from the earliest 356 model cars new series — Pirelli GT4 America — running together mats will run eight races, including six together at the tion and education, Pirelli said. all the way to the Boxster from the 1990s. with the Blancpain series. same venue and on the same weekends as Blancpain The name change is the initiative of the series orga- World Challenge GT and/or IndyCar races. nizer SRO Motorsports to bring the North American SRO claims the GT4 America format offers reduced series more in line with similar series it runs in Europe costs, technical fairness, dynamic races featuring pro- and Asia. fessional and amateur racers, convenient locations and Pirelli — the designated tire supplier of the North a friendly paddock atmosphere. American series since 2011 — carries that same distinc- SRO and Pirelli also have created two regional series tion with 11 other race series organized by SRO, which running under SprintX Championship rules, one for the recently renewed its contract with Pirelli until 2023. western U.S. and one for the eastern U.S. and Canada While Pirelli loses title sponsorship of what was running ve race weekends each. known as the Pirelli World Challenge for the past seven Pirelli Car Racing Manager Mario Isola said Pirelli years, it picks up title sponsorship for the Pirelli GT4 “shares SRO Motorsports America’s vision to grow the America series, which features both domestic and im- series internationally as part of our long-term partner- port sports cars. ship and joint strategy.” Among the cars eligible to race in the GT4 category Being able to extend its relationship “enhances the are: BMW M4 GT4; Chevy Camaro GT4.R; Audi R8 constantly expanding reach of all the different cham- Porsche Club of America photo LMS GT4; Ford Mustang GT4; Mercedes-AMG GT4; pionships” promoted by SRO and consolidates Pirelli’s Pirelli Tire North America will continue to sponsor Porsche Club of America Porsche Cayman GT4 CS MR; McLaren 570S GT4; leadership in premium GT racing worldwide, he added. Inc. as the parties renewed their agreement for three more years. Hoosier named Formula Vee supplier Cisneros unites Weld, MOMO

TOPEKA, Kan. — The Sports Car Club of for its consistency over several heat cycles America (SCCA) has designated Hoosier in race conditions, Hoosier said, and the holdings under new unit Racing Tire as the exclusive race tire sup- construction has been enhanced to pro- KANSAS CITY, Mo. — Cisneros Corp. has brought its plier for its Formula Vee (FV) class for the vide more stability and grip. various automotive aftermarket holdings — includ- 2019-21 seasons for all club events. The Formula Vee racer is a single-seat, ing Weld Racing L.L.C. and MOMO Automotive The SCCA said it decided to proscribe open-wheel chassis powered by a standard Group — under a new corporate entity, MW Co. a spec tire for this class “in an effort to curb Volkswagen 1200 series Type 1 engine The new rm will be headquartered in Kan- racing expenses, create driver parity and (1.2-liter, air-cooled, 4-cylinder horizontally sas City and led by Henrique Cisneros, who was promote the cost effectiveness of the class opposed piston layout). named chairman of the board. to help foster future The spec tire rul- Mr. Cisneros, a member of Cisneros Corp.’s in- growth.” Prior to this, ing applies to all vestment committee responsible for development the SCCA maintained SCCA road-racing opportunities outside of Venezuela, oversaw that an open tire compe- events — regional, company’s acquisition of Weld Racing in 2017 tition policy for this U.S. Majors Tour and in a move to create a global portfolio of “storied class, with the proviso Hoosier Super Tour high-performance brands” and product lines. that ungrooved radial events, as well as the The creation of MW Co. establishes one of photo Corp. Cisneros race tires were not al- National Champion- the largest portfolios of performance and motor- Henrique Cisneros has reorganized his auto- lowed. ship Runoffs. sports brands in the industry, including: MOMO, motive aftermarket holdings into MW Co. Beginning imme- • • • Weld Racing, ADV.1, Driven Motorsports, CCW brands and providing our customers with more diately, Hoosier’s FVS C4000 tire will be SEPARATELY, racing kart manufac- Forged Performance, Reds, Forgestar, HiPer product options than ever before.” the “spec” rubber required for FV com- turer Margay Racing L.L.C. has struck a Technology and Tikore. The company, which had three booths at the petition in dry conditions. In 2020, a spec deal to become the exclusive distributor in “Each of these brands has a strong history and 2018 Specialty Equipment Market Association Hoosier rain tire also will become man- the U.S. and Canada for Hoosier Racing carries a strong passion for driving and racing — (SEMA) Show, will continue to operate facilities datory. Tire’s karting products. and this will not change,” Mr. Cisneros said. in Anaheim, Calif., Kansas City, Mo., and Milan, The new spec compound was formu- As part of the deal, Hoosier agreed to “Bringing them together under the MW Co. Italy. lated to meet the elevated durability and develop a tire for applications where lon- umbrella will only make them stronger. Our MOMO Automotive, which branched into tires consistency requirements of all Formula gevity is paramount, including the Mar- mission is to fuel the world’s passion for driving, in 2012 and launched a tire program for North Vee competitors nationwide. It’s known gay Ignite spec-chassis program. and the launch of MW Co. enables us to do ex- America in 2017, unveiled a range of all-season actly that, by increasing the global reach of these car, SUV and light truck tires at the SEMA Show. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, January 21, 2019 • 19

DMack may make rally tires at Marangoni’s plant

ROVERETO, Italy — Marangoni was part of a wider Marangoni industrial synergies and new DMack made its entry to the S.p.A. is in talks with rally tire plan to create “a rubber techno- business models based on the ap- motorsport in 2011, supplying tires supplier DMack Tyres about the logical hub and create new syner- plication of the sharing economy produced in partnership with Chi- possibility of DMack’s producing gies with other partners.” to manufacturing,” Mr. Sanni- na’s Shandong Yongtai Chemical racing tires at its site in Rovereto, Such partnerships, he said, could colò said. Group, which went into receiver- according to Federico Sannicolò, cover many aspects of tire produc- Retreading will continue to be ship last July. public relations and communication as well as other new initiatives a core activity for Marangoni, The company also contracts out tion specialist at Marangoni. related to tires, using Marangoni’s Mr. Sannicolò stressed. “A bulk the production of a small number Mr. Sannicolo declined to expertise in the industry. of what we do here is retreading of tires at Cooper Tire & Rub- DMack photoDMack comment further on the DMack “We’re looking at opportuni- for truck and off-the-road tires, ber Co.’s factory in Melksham, DMack is in talks to produce racing tires at proposal, but told European Rub- ties for growth with other parties and this will remain like that,” England, which is also set to be Marangoni’s retread plant in Rovereto, Italy. ber Journal the proposed deal who can offer and bene t from he said. phased out. Michelin began IMSA preparations in mid-2017 Continued from page 1 other forms of motorsports,” Ms. Adams said. series, starting with the 2019 season. “There is also a larger amount of versatility re- The multi-year agreement replaced a sup- quired in the tire performance across a season. ply deal IMSA had with Continental Tire the “The Indy Car Series is one of the few sched- Americas L.L.C. since 2010 that ended in 2018. ules to race on both permanent road and street The deal calls for Michelin tires to be on every courses in addition to superspeedways and ovals Prototype and GT Daytona race car competing of various sizes. This requires several different in the WeatherTech Championship as well as on families of tires for each circuit, and special ex- the companion Michelin Pilot Challenge and pertise for each type of surface and track.” IMSA Prototype Challenge series. All Firestone research, development and pro- “We began prep for the 2019 (races) toward duction take place in Akron. Ms. Adams said the middle or third part of 2017, as soon as we the tire maker supplies about 5,000 tires for learned of the award (to supply IMSA tires),” Mr. practice, qualifying and Indy 500 race. Payne said. “That’s when we started to identi- While many think the race is the end of the fy our staf ng requirements, get involved with photo Goodyear process, Ms. Adams considers it somewhat of marketing and communications, planned tire Goodyear has been associated with NASCAR since 1954. a beginning. supplies and analyzed tire logistics down to how 1954, including the last 21 years exclusively. stone Americas Motorsports, and her team con- “Right after the race, we take all that feedback the tires would be transported to the tracks.” Goodyear engineers and other team mem- stantly analyze how new technology can increase and vehicle performance data back to Akron, where Mr. Payne and his team analyze all available bers evaluate basic constructs and compounds performance of the tires they supply. our Race Tire Engineering Team is based, and data from past races — from tire supplies to race with at least seven to 10 tested at each track per Ms. Adams and her team use somewhat the compare it with our own analysis of the physical results — before they begin to formulate plans. season. That number uctuates depending on same system of analysis, planning and prepa- race tires to determine which areas we would focus Even when prototypes of tires are supplied to track repaving, recon guration or rules change. ration as their counterparts at Michelin, Good- on for the next year’s race,” she said. “At Firestone IMSA race teams, they are tested and re ned con- “We take our own data on temperature, year and other manufacturers. Racing, we like to say that there is no off-season.” tinuously before they are ordered into production. appearance and wear over the course of (the Planning occurs 12 to 18 months prior to each Goodyear’s Mr. Stucker and Michelin’s Mr. What might seem like minor tweaks — in- tests),” Mr. Stucker said. “Obviously we have race and involves various stakeholders and teams, Payne echoed the same sentiment. crease of a rear tire dimension for one car, add- input from the teams including the crew chiefs yet the Bridgestone team faces a somewhat un- “They used to say there was an ‘off-season,’” ed robustness needed for another tire — can and drivers, we have input from NASCAR and usual challenge when it prepares for the Indy 500, Mr. Payne said of motorsports. “That is a ( gment) have major impacts on race results. we have our own analysis. We have very, very the crown jewel of the IndyCar circuit. of your imagination. We are constantly looking at Production takes place at the company’s good communication, and we make sure we “The speeds, lateral acceleration and tire how tires are performing. We are constantly ask- plant in Clermont-Ferrand, France, before they make the right decisions for the sport.” loads in IndyCar racing are higher than many ing, ‘How can we do this better?’” are transported, usually by ship, to the Port of Goodyear meets weekly with race teams, NA- Charleston, S.C. From there they are trucked to SCAR of cials and other stakeholders to ensure climate-controlled warehouses near Michelin’s the tires they manufacture, including between North American headquarters in Greenville, 3,300 and 3,500 for the March races in Las Ve- S.C., before they are transported to racetracks. gas and 100,000 for races each year, are designed Scott Clark, chairman and president of Mi- and produced at the Goodyear plant in Akron. chelin North America, elaborated on the mag- They are stored in climate-controlled ware- nitude of his company’s participation in the houses until they are pre-mounted about two IMSA series at the recent North American In- weeks before the races. ternational Auto Show. Intriguingly, both NASCAR and IMSA hold “Endurance racing is woven throughout the their premiere events — the Daytona 500 and fabric of Michelin’s history. In fact, racing has al- Rolex 24 — at the same track just weeks apart. ways played an active role in driving innovation and ingenuity at Michelin,” he said. “More than Change of pace any other motorsports pursuit, endurance racing demands reliable performance over time.” Although the core elements of supplying tires Michelin North America photo As IMSA’s exclusive partner, Michelin will to the Indianapolis 500 have not changed in the Race winners Leo Lamelas and Neil Alberico pose with a Michelin MotorSports representa- support 19 automotive brands this year compet- past decade, Cara Adams, chief engineer, Bridge- tive (center) in victory lane after the inaugural 2019 IMSA Prototype Challenge race. ing in different classes of the IMSA WeatherTech SportsCar Championship — compared with ve brands last season in the GT LeMans category. Michelin’s deal with IMSA also is an exten- ARCA circuit supports ‘up-and-coming stars’ sion of and bene ts from its work as a supplier the past few decades for the FIA World Endur- Continued from page 1 Mr. Thompson noted the separate series’ head-to-head with seasoned veterans on the ance Championship — including the 24 Hours NASCAR K&N Pro Series East, NASCAR chassis and body regulations are roughly same playing eld. of LeMans, where Michelin-equipped teams K&N Pro Series West, ARCA Racing Elite the same across all four championship se- “That’s the part that excites me the most,” have won 21 straight times. Series presented by Menards and a new series ries — late-model stock cars using bodies of Mr. Thompson said, “the opportunity to NASCAR is calling “Stock Car Invitational.” Chevrolet, Ford and Toyota sedans get those young stars against Teamwork at tracks NASCAR acquired ARCA — Automobile powered by identical 396-cu- some of these seasoned vet- Racing Club of America — in May 2018, put- bic-inch V8 racing engines. erans and have them all out Greg Stucker, director, race tire sales for Good- ting the nation’s two major stock-car racing Teams electing to com- there at the same time. year, and his team nd themselves on tracks near- sanctioning bodies under one roof. plete in the Elite Series “It’s a good natural pro- ly every week of the year, testing, monitoring and “Underscoring NASCAR’s commitment to will run the current ARCA gression from racing among comparing tires for NASCAR events. short-track racing is No. 1,” according to Bran- engine package, while teams your peers, so to speak, to In late 2017, Goodyear and NASCAR re- don Thompson, managing director of the NA- competing in the Pro Series East going against some wily vets, newed their exclusive race tire supply agree- SCAR Touring Series, who said the basic idea and West will run the existing package for which is what they’re going to see in the ment in a multi-year deal for the sanctioning is making sure series veterans have a home those series as well. Truck Series. It’s another ode to that devel- body’s three top national series for an undis- while also supporting the sport’s up-and-com- The revised format will provide a platform opmental ladder and this being a key rung closed number of years. Goodyear has had a ing stars. for younger, up-and-coming drivers to go in that ladder.” relationship with NASCAR every year since 20 • January 21, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Bridgestone names Seibert, ON THE MOVE Walsh to OTR sales posts Mickey Thompson hires Pickens at IAC North America in Dayton. Most recently, Mr. Chia was director of operations at NASHVILLE, Tenn. — Bridgestone Amer- STOW, Ohio — Mickey Thompson Tires & Wheels has hired Biamp Systems, a manufacturer of audio-visual prod- icas Inc. has promoted Rob Seibert Todd Pickens, a former executive in Goodyear’s consumer ucts in Portland, Ore. to executive director, OTR sales, replacement sales organization, to be The factory will produce four million tires per year Bridgestone Americas Tires Operations its vice president of sales. once it reaches full capacity and employ approximately (BATO) and Erica Walsh to executive Mr. Pickens will be responsible for 400 workers. director of sales, Firestone Ag, BATO. driving pro table sales and growing Mr. Seibert previously was BA- market share for Mickey Thompson Maxam’s Kline expands duties TO’s director of marketing, OTR, segments, including street, race and U.S. and Canada. light truck, the Cooper Tire & Rub- DANVERS, Mass. — Maxam Tire International S.a.r.l. has Prior to joining Bridgestone in ber Co. subsidiary said. promoted Troy Kline, president of Maxam Tire North 2015, Mr. Seibert spent ve years at Seibert Walsh Mr. Pickens spent the past three- America Inc., to oversee the company’s European oper- P&H Mining Equipment, the surplus years with KRP Associates, a ations after the recent retirement of Martin West. face mining products division of ment tire channels. Pickens consulting services company, after Mr. Kline will continue as president of Maxam Tire Joy Global, where he held roles of Ms. Walsh previously was direc- leaving Goodyear in late 2014. He North America, a post he has held since 2015, leading increasing responsibility, including tor of truck/bus radial (TBR) origi- spent 10 years with Goodyear, including four as senior numerous business and commercial programs over that serving as a product manager and nal equipment tire sales. She joined director, channel sales. span. district manager. Bridgestone in 2000 where she be- Before joining Maxam, Mr. Kline worked for eight In her new role, Ms. Walsh will gan her career as a senior engineer Hybrid Shop rehires Mellor as VP years in heavy equipment manufacturing, and he has lead Firestone Ag sales strategy and in the quality assurance department more than 18 years of specialty tire experience in roles execution in North America. She and since has held a number of lead- TORRANCE, Calif. — The Hybrid Shop L.L.C. (THS) has of increasing responsibility with several companies, in- will oversee a portfolio of busi- ership positions in commercial sales rehired 30-year automotive aftermarket industry veter- cluding Trelleborg A.B., Maine Industrial Tire and GPX ness that includes agricultural tires, and marketing. She helped establish an Carey Mellor and named him vice president of sales. International. tracks and integrated tire-wheel as- the enterprise innovation platform He will be a part of the senior management team at Danvers-based Maxam Tire North America is a di- semblies in both the OE and replace- for Bridgestone Americas. the business that specializes in hybrid and electric ve- vision of Maxam Tire International of Luxembourg, hicle training and development, focused on growing the which in turn is part of China’s Sailun Group. Maxam network of franchised dealers nationwide. specializes in specialty OTR tire products, covering Continental extends For the past ve years, Mr. Mellor has been an inde- applications for the mining, construction, warehousing pendent business consultant. and manufacturing industries. THS said his work with the company has been in- Degenhart’s contract strumental in the development of a revised franchise Exide names Vargo as prez/CEO program. Previously he was vice president of sales and ESLINGEN, Germany — Continental A.G.’s pro table growth in early preparation marketing with AmPac Tire Dist. Inc., where he was in- MILTON, Ga. — Vehicle battery marketer Exide Technolo- supervisory board has extended the for the ongoing profound transforma- volved in the development and launch of the Tire Pros gies has appointed Timothy D. Vargo, a current member contract of CEO Elmar Degenhart for tion of the automotive industry,” Mr. retail franchise program. of Exide’s board, to serve as president and CEO. ve years, through August 2024, say- Reitzler said. THS recently hired Dave Crawford as president and Mr. Vargo, who will remain a member of the board of ing the move “reects the continuous “The extension of his contract chief operating of cer to oversee day-to-day operations directors, succeeds Vic Koelsch, who pro table development of the com- reects the continuous pro table de- and management. stepped down. pany” under his guidance. velopment of the company. “Vic and the board agree that now Mr. Degenhart, 59, joined For this, the supervisory Martins adds 4 sales managers is the right time for a new leader Continental in August 2009 board is demonstrating its with a fresh operational perspective as chairman of the executive full con dence in him,” he MONTREAL — Martins Industries Inc. has expanded its to drive value in the next phase of board to replace Karl-Thom- added. sales team by appointing new account managers for the Exide’s growth,” Exide Chairman as Neumann, who had re- In his own remarks, Mr. Canadian and U.S. markets. Keith Wandell said. “Tim brings the signed in the wake of waning Degenhart said, “The in- The new managers and their territories are: Grant right leadership skills and operation- con dence in his leadership creasing digitalization of Stoic, Ontario; Jim Turner, Western Canada; Amos Wil- Vargo al experience to step in and immedi- of the company. all processes and products, liams, Texas, New Mexico and Oklahoma; and Jose Gari- ately accelerate our transformation.” Mr. Degenhart came to the conversion of vehicles bay, California, Nevada and Arizona. Mr. Vargo previously was the president and chief op- Conti from Schaefer Group Degenhart to electric drive systems, Each account manager will concentrate on servicing his erating of cer of AutoZone, where he was instrumental — Conti’s largest single share- and the high growth in the territory in order to support and inform customers on the in executing a growth strategy that took the company holder — where he had been chairman elds of automated driving and con- latest business and product innovation, the company said. from 1,000 stores to 3,250 stores and sales from $1.5 of Schaefer’s automotive unit. nectivity have triggered a profound Martins Industries manufactures and distributes tire billion to more than $5 billion. His current term ends Aug. 11. He transformation in our industries. equipment through distribution centers in both Canada is directly responsible for corporate “We are right at the forefront of and the U.S. ACA hires Ray to oversee PAC communications, quality and envi- shaping this transformation. For over ronment, the global lean management eight years now, we have been work- ZF taps Cali for aftermarket sales BETHESDA, Md. — The Auto Care Association (ACA) has program known as Continental Busi- ing on expanding our culture of net- hired Hailey Ray as director, political affairs, to lead the ness System, and numerous central working and trust.” LIVONIA, Mich. — ZF Group’s Aftermarket division has ap- association’s political action committee. functions in the automotive group. Mr. Degenhart noted that Conti- pointed Mark Cali to head indepen- Ms. Ray will be responsible for designing and ad- Under Mr. Degenhart’s leadership, nental is undergoing a major reor- dent aftermarket sales for the U.S. ministering an aggressive campaign to raise money for Continental has “achieved top perfor- ganization — one that will result and Canada. the association’s political action committee, ACPAC, in mance industrywide,” Supervisory Board by 2020 in a holding company with Mr. Cali will be responsible for addition to coordinating political contributions and pro- Chairman Wolfgang Reitzle said. three business sectors, rubber, auto- growing aftermarket sales of automo- ducing association-hosted political events. “Together with his executive board motive and powertrain — and said tive parts, including the TRW, Sachs ACPAC is a bipartisan fund that seeks to elect and colleagues and senior executives, he this change “will help us to continue and Lemforder brands, and expanding re-elect of cials who work to advance, promote and pre- has geared the organization and com- our rapid, pro table growth and to product distribution throughout the serve a healthy auto care industry. pany culture toward sustainable and exploit new business potential.” region. He succeeds Mark Thorpe, Ms. Ray also will be responsible for working with the who resigned from the company in association’s government affairs staff to coordinate con- January. tributions to political action committees as well atten- Cali Zafco hires Tolbert Mr. Cali joined ZF Aftermarket dance at fundraisers and partnering with congressional in 2000 in product management and moving into sales political nance teams to produce association-hosted positions. He will continue as head of service sales for political events. to increase N.A. sales North America. She most recently was the PAC director for the Na- MIAMI — Zafco International has hired en Tire America Inc. In addition, he tional Multifamily Housing Council. tire industry veteran Chris Tolbert as has held sales positions at Giti Tire Nokian names Chia as plant mgr. vice president of sales in the East Zone USA, Tire Centers and Ziegler Tire. McClellan to chair USTMA board of North America. Mr. Tolbert called his new job “a DAYTON, Tenn. — Nokian Tyres P.L.C. has hired Peter Chia Mr. Tolbert will work with the sales great opportunity to help build a multi- as plant manager and operations of its rst North Amer- WASHINGTON — The U.S. Tire Manufacturers Associa- team to build the Armstrong brand strategy at Zafco and ican tire facility, an 830,000-sq.-ft. tion (USTMA) has elected Stephen McClellan, presi- brand in the passenger, light bring back a quintessential plant in Dayton that is on schedule dent of Goodyear’s Americas business unit, as chair of truck and truck/bus tire seg- American brand that once to begin production in 2020. the USTMA board of directors for the next two years. ments, as well as grow the Ac- had a strong and loyal dis- Mr. Chia will be responsible for Mr. McClellan succeeds Jim Hawk, Toyo Holdings of celera, Forceum and Zeetex tributor and customer base.” overseeing all aspects of the tire pro- America Inc. chairman, who held the post since 2016. brands in the U.S. and Canada. Miami-based Zafco im- duction process at the plant, while up- Mr. McClellan was promoted to his current position in Mr. Tolbert previously served ports and distributes the Ac- holding the company’s environmen- 2016. Prior to the combination of Goodyear’s North and as director of business devel- celera, Armstong, Forceum tal and safety standards. He has more Latin America businesses, he was president of Good- opment automotive at Ameri- and Zeetex brands to whole- than three decades of experience as year North America, a position he assumed in 2011. can Kenda Rubber Co., as well salers and retailers through- a manager and director in the global The USTMA is the national trade association for tire as senior sales director at Nex- Tolbert out the Americas. Chia automotive industry, including time manufacturers that manufacture in the U.S. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, January 21, 2019 • 21

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In an interview just before the start of Passed in 2016, the Resource Re- the symposium, TRAC President Glenn covery and Circular Economy Act Maidment Armiento Rathbone Moran Maidment said he hoped the event (RRCEA) establishes a new out- Tire Business photos Miles by Moore would inform those covered by the RR- comes-based producer responsibility ara Falls. the end of life; spectively. CEA of their new responsibilities. framework for used tires and several “The tire program operated quite  Establish and operate collection “We will not contract with pro- The large tire makers already are other recyclable end-of-life products. well, and we don’t want it to go away,” and management systems; ducers and service providers, collect well aware of those responsibilities, Under the RRCEA, producers — he said. Rather, the idea is to build on  Implement promotion and edu- money from producers to pay service but the smaller retailers, importers de ned as brand owners, wholesalers, the success of OTS in the context of cation programs to increase tire collec- providers or pay incentives,” Messrs. and wholesalers are more of a con- dealers and others with a commercial the new regulations, he said. tion, reuse, recycling and recovery; and Rathbone and Moran said. cern, Mr. Maidment said. connection to the tires — are respon- Tire producers had to pay into OTS  Maintain and share documents, IPR eliminates steward fees for pro- “We knew if we got the major OEMs, sible for the end-of-life management under the Waste Diversion Act with data and audit results, including annual ducers, they said. Instead, producers we’d have three-fourths of volume of of their products and packaging, ac- no ability to reduce their individual reports. that provide fewer than 1,000 tires will scrap tires,” he said. “I’m worried about cording to John Armiento of the On- costs, Mr. Armiento said. Producer responsibility organiza- pay RPRA a $75 at fee, or 14 cents per another 700 producers — 650 of them tario Ministry of the Environment, Under the RRCEA, however, pro- tions, service providers, municipalities tire for 1,000 or more, they said. don’t know what their obligations are or Conservation and Parks. ducers may choose how best to meet and others engaged in tire recovery and Producer responsibility organizations who is going to manage them.” The RRCEA replaces Ontario’s their scrap tire management obliga- waste reduction share responsibility will pay a $7,500 at fee, including On another issue, Mr. Maidment said Waste Diversion Act, and with it tions, either on their own or by joining with producers for registration, pro- $5,000 for registration and $2,500 for a TRAC members are hopeful that the Ontario Tire Stewardship, the indus- with others to obtain services for tire motion and education, and documenta- registry license, the speakers said. new U.S.-Mexico-Canada Free Trade try-funded waste diversion program collection and management, he said. tion, according to the law. There are now six organizations Agreement, the successor to the North created in 2009. Among other things, the RRCEA The Resource Productivity and Re- in Ontario providing tire and waste American Free Trade Agreement, will By all accounts Ontario Tire Stew- requires producers to: covery Authority (RPRA), the agency management services to help tire pro- calm any lingering concerns about ardship (OTS) was highly successful  Register as producers with the created to oversee individual produc- ducers meet their obligations under trade between Canada and the U.S. in managing Ontario’s scrap tires and Ontario government and keep regis- er responsibility (IPR) for tires, does the RRCEA. “There are still ongoing issues with nding end-use markets for them, Mr. tration up to date; not replace OTS, according to Geoff The Tire and Rubber Association the steel and aluminum tariffs,” he said Armiento acknowledged at the recent  Design tires to reduce waste Rathbone and Pat Moran, director of of Canada (TRAC), which co-spon- “but we are hopeful that both sides are Rubber Recycling Symposium in Niag- generation and recover resources at transition and registrar for RPRA, re- sored the Rubber Recycling Sympo- looking toward a resolution.” Nexen honors Iraq war veteran Purple Heart award winner Diaz is recipient of Dodge Challenger R/T DIAMOND BAR, Calif. — Nexen Tire America Inc., Nexen Tire and the Purple Heart Foundation as portunity to serve a combat wounded veteran,” in partnership with the Purple Heart Founda- the recipient of the Nexen Tire Dodge Challenger said Douglas Greenlaw, National Commander for tion, honored retired Marine Corporal Steven R/T,” Mr. Diaz said. “This is an incredible vehi- The Military Order of the Purple Heart, USA. Diaz recently as the recipient of the American cle and program that has helped bring important “This vehicle donation is what the Military Muscle for American Heroes Nexen Tire Dodge attention to the thousands of combat-wounded Order of the Purple Heart is all about — helping Challenger R/T. veterans across the country who are still suffer- our country’s veterans in any way we can. This Mr. Diaz, who was wounded in 2005 while ing from the effects of their injuries.” will be a life-changing event” for Mr. Diaz. clearing improvised explosive devices (IEDs) in Mr. Diaz lost the use of his left eye and suf- “The American Muscle for American Heroes Iraq, was selected by representatives from Nex- fers from the effects of traumatic brain injury program has been a tremendous platform to help en and the Purple Heart Foundation from thou- (TBI), post traumatic stress (PTS) and a seizure raise awareness for combat wounded veterans Nexen Tire America Inc. photo sands of nominations from across the country. disorder related to the injuries received while and the Purple Heart Foundation,” according to Marine Corporal Steven Diaz reacts after re- The campaign, announced in September, was on duty in Iraq. The force of the explosion and Kyle Roberts, senior director of marketing for ceiving the Nexen Tire Dodge Challenger R/T. designed to honor a well-deserving veteran who ying shrapnel caused several life-threatening Nexen Tire America. was awarded the Purple Heart Medal after being injuries, Nexen said. “I would like to congratulate Steven for being nered with several other automotive aftermarket wounded in combat — and to show gratitude for Dedicated to helping other veterans suffering named the recipient of the Nexen Tire Dodge companies to help transform the Dodge Chal- the safety and security provided to Americans by from similar injuries, Mr. Diaz co-founded Hid- Challenger R/T and thank him for his incredible lenger R/T into a muscle car. members of the Armed Forces, Nexen said. den Wounds, an organization that helps “heroes sacri ce while serving our nation. These part- The company enlisted renowned car-builder Many of these submissions, which included battle the invisible war at home.” He is the or- nerships help companies like Nexen Tire show Kenny P tzer of Zero to 60 Designs to oversee incredible stories of heroism, patriotism and ganization’s chief operating of cer and Project their immense gratitude for our men and women the car’s custom modi cations, which included courage, were posted to social media. Josiah program manager. in uniform.” adding Nexen Roadian HP Street Sport all-sea- “I am extremely honored to be selected by “Our thanks go out to Nexen Tire for this op- Helping make this possible, Nexen Tire part- son radial tires. Quebec moves up 2019 installation TIA sets training classes for 2019 BOWIE, Md. — The Tire Industry As- • Feb. 5-8 – Charlotte, N.C.; domestic and import vehicles. date for winter tires to Dec. 1 sociation (TIA) plans to hold Auto- • March 26-29 – Louisville, Ky.; Certi ed ATS also includes an MONTREAL — The Quebec National exemption for those purchasing a motive Tire Service (ATS) Advanced • May 21-24 – Mission Viejo, Ca- exclusive module on tire conditions Assembly has moved up the date new vehicle, including purchases Instructor Training courses at seven lif.; analysis that use images from TIA’s for mandatory winter tire installa- made from an individual. locations across the U.S. • July (dates to be deter- Passenger and Light Truck Tire Con- tion on passenger vehicles and tax- The ne for not having winter during 2019, starting Feb. mined) – Dallas; ditions Manual to educate technicians is in Quebec to Dec. 1 from Dec. tires mounted during the enforce- 5-8 in Charlotte, N.C. • Aug. 13-16 – Denver; on the most likely reasons for com- 15, starting this year. ment period varies from $200 to The four-day, hands-on • Sept. 10-13 – Seattle; mon irregular treadwear patterns. The end date of the mandatory $300 (Canadian), plus court costs, training classes are designed • Nov. 12-15 – Baltimore. To register for the 2019 ATS Train- period remains at March 15. The according to the Société de l’as- to certify individuals as ad- The ATS Program is a ing Tour, visit TIA’s website. law governing mandatory winter surance automobile du Québec vanced ATS instructors, al- 300- and 400-level certi- For more information, contact Chris tire use in Quebec has been in ef- (SAAQ), a governmental body lowing them to certify ATS cation that provides in- Hoogenboom at choogenboom@tire- fect since 2009. that administers Quebec’s public instructors and technicians depth and comprehensive industry.org or call 800-876-8372, The province attributes a mea- automobile insurance plan by com- in the eld. instruction on the recom- ext.106. sured reduction in tire-related ve- pensating road accident victims The basic ATS course focuses on mended procedures for servicing Among those that sponsored the hicle accidents to the increased use and setting insurance contribu- educating tire technicians on the modern automobiles and light trucks. 2018 Training Tour were: 31 Inc.; All- of winter tires since the law’s im- tions; promotes road safety through proper safety procedures and guide- Certi ed ATS is designed for the part Supply Inc.; ATEQ; Bartec USA; plementation. awareness campaigns; and moni- lines for servicing passenger and light professional passenger and light truck Steelman Select Sensor; Modern Tire The law does not apply to com- tors and controls the transportation truck tire and wheel assemblies. Most tire technician. The subjects range Dealer; Paci c Industrial Co. Ltd.; mercial vehicles or light trucks. of persons and property via the of the classes will be held at local from the relationship between torque REDI Sensor (Continental the Amer- The law provides a seven-day public roadways. community and technical colleges. and clamping force to the TPMS re- icas); Rubber Inc.; and Schrader Per- The full schedule is: learn and diagnostic procedures on formance Sensors. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, January 21, 2019 • 23 Trade groups react to proposed change Continued from page 1 nese theft of intellectual property, he billion worth of goods were causing said. great concern among their members. But the president already has sweep- Anne Forristall Luke, president and ing powers to raise tariffs under Sec- CEO of the U.S. Tire Manufacturers tion 232 and 301 of the Trade Act, he Association, not- added. ed the USTMA’s Section 232 of the Trade Expan- long-standing sion Act of 1962 allows the president opposition to the to raise tariffs on or use other means steel and alumi- against imported goods he deems to num tariffs be- threaten national security. Pennzoil signs sponsorship cause the grade Section 301 of the Trade Act of 1974 of steel necessary authorizes the president to take action for making tire against any act, policy or practice by deal with Houston dragstrip cord is not pro- another country that violates an inter- duced in the U.S. Luke national trade agreement or that places BAYTOWN, Texas — Shell Oil Co.’s Penn- raceway. perfect opportunity for Pennzoil and Three suppli- a burden on U.S. commerce. zoil brand has signed a multi-year spon- “The commitment Pennzoil has Houston Raceway Park to begin a new ers of tire-grade steel have applied A spokeswoman for the Motor & sorship deal with Houston Raceway made to the sport of NHRA drag chapter and build on a solid history of to the U.S. Department of Com- Equipment Manufacturers Associa- Park (HRP) that will see the 30-year- racing, speci cally through its asso- supporting an incredibly exciting and merce requesting exemptions from tion (MEMA) pointed to the lings old facility adopt the name Houston ciation with Don Schumacher Racing, popular motorsports series.” the tariffs, Mrs. Luke said. MEMA made throughout 2018 oppos- Race Park powered by Pennzoil. is a testament to its faith in the future As part of the agreement, Pennzoil “Commerce hasn’t ruled on those ing the Trump administration’s tariff The quarter-mile dragstrip, found- of our sport,” Mr. Angel said. “We is able to offer exclusive, one-of-a- petitions yet,” she said, “but they were programs. ed in 1988 by Greg and Gary Angel, couldn’t be more thrilled to ‘Make the kind experiences at the facility to em- supported by comments from do- In a November 2018 submission to is located in Baytown, near Houston. Switch’ to Pennzoil as we head into ployees, customers and Pennzoil race mestic steel manufacturers, so we’re Commerce, MEMA urged the admin- The agreement includes naming the 2019 race season.” team fans. optimistic about those petitions being istration to allow greater exibility on rights, designation for Pennzoil as the Patty Lanning, vice president of Mr. Angel lauded Pennzoil’s pres- granted.” steel and aluminum tariffs and exempt of cial lubricant of Houston Raceway North American Marketing for Shell ence in the Houston area. “Likewise, As for the tariffs on Chinese goods, Mexican and Canadian imports from Park powered by Pennzoil, logo place- Lubricants, said Pennzoil has a long we’ve always strived to make our these are problematic for tire manu- tariffs. ment on numerous buildings through- history in motorsports, including sev- facility one of the best on the circuit facturers, Mrs. Luke said. “Often, there are few (steel) produc- out the facility, including the left-lane eral years in the National Hot Rod As- with continual upgrades to both the “We have a global supply chain,” ers in the world — in some cases only scoreboard and the VIP Tower Suites, sociation (NHRA). racetrack and the common areas to she said. “We advocate for free and one or two — that can source the grade as well as all high-traf c areas within “In fact, our relationship with Don make sure the racers and our guests fair trade, especially for raw materi- of specialty materials needed to make the pits. Schumacher Racing is a great exam- have a great time.” als, equipment and everything nec- component speci cations,” the asso- HRP Vice President Seth Angel ple of that success, both on and off HRP powered by Pennzoil will be essary to manufacture tires. Tariffs ciation said. “Examples include wire called the announcement “another the track,” she said. “This new enti- the site of the 32nd annual NHRA harm every tire maker that has a fa- used in steel-belted radial tires and exciting chapter” in the history of the tlement at Houston Raceway Park is a SpringNationals, April 12-14. cility in the U.S., that is building a specialty metals used in fuel injectors.” facility in the U.S. and that plans to MEMA, SEMA and the Auto Care build a facility in the U.S.” Association were among 150 trade Representatives of auto aftermarket associations from a broad range of Firestone to sponsor Monterey IndyCar race associations expressed the same fears. industries that wrote U.S. Trade Rep- MONTEREY, Calif. — Bridgestone Americas Inc.’s Firestone liver great events for fans when the NTT IndyCar Series “Uncertainty is hanging over every- resentative Robert Lighthizer in Sep- brand has secured the title sponsorship for the next two season goes green in St. Petersburg and crosses the nish body’s head,” said Stuart Gosswein, tember 2018, opposing the imposition years for the season-ending race of the NTT IndyCar line in Monterey — while continuing to provide world- senior director, federal government of 10- and 25-percent tariffs against Series. class tire technology for every lap in between,” she said. affairs at the Specialty Equipment goods imported from China. The Firestone Grand Prix of Monterey is set for Sept. WeatherTech Raceway Laguna Seca hosted memo- Market Association (SEMA). “Nobody “Assumptions that U.S. companies 20-22 at WeatherTech Raceway Laguna Seca near Mon- rable IndyCar races from 1983 to 2004, including Alex had this in their budgets for 2019.” can simply move their production terey, which will host an IndyCar event for the rst time Zanardi’s executing “The Pass” on Bryan Herta on the The tariffs on imported steel have out of China are incorrect,” the letter in 15 years, Bridgestone said. The event will be broad- nal lap of the 1996 nale; Mario Andretti’s retirement affected prices not only on imported stated. “Global supply chains are ex- cast live on NBC. in 1994; and Bobby Rahal’s four consecutive wins from steel, but on U.S.-produced steel as tremely complex. Financial terms were not disclosed. The deal is with 1984-87. well, Mr. Gosswein said. “It can take years to nd the right the County of Monterey, which owns the 2.238-mile, 11- The track is known for its “Corkscrew” turn, a nearly “If they’re buying domestic steel, partners who can meet the proper turn road course. six-story drop in elevation on esses between Turns 8 and there’s been a lot of hoarding,” he criteria and produce products at the Firestone also is the title sponsor of the season-open- 8A, as well as the Andretti Hairpin on Turn 2 and Rahal said. “Domestic companies had to scale and cost that is needed,” it said. ing race, the Firestone Grand Prix of St. Petersburg, Straight on the back straight between Turns 6 and 7. raise prices, which had the same ef- “We do not support the U.S. gov- which will be held March 8-10 on the combined airport Global information and technology provider NTT fect as tariffs on imported steel.” ernment using tariffs as a means to runway/city street course in St. Petersburg, Fla. Data Corp. signed a multi-year agreement recently to be- SEMA strongly supports the Trump induce U.S. companies to change Lisa Boggs, director of motorsports, Bridgestone come the title sponsor of the series. NTT also becomes administration’s efforts to curtail Chi- their sourcing strategies.” Americas, said Firestone is a perfect match for IndyCar’s the of cial technology partner of IndyCar, the NTT In- return to the track. dyCar Series, Indianapolis Motor Speedway and the In- “With this new sponsorship, Firestone now will help de- dianapolis 500. Robbins says system could cut expenses and save shop time Acquisition expands Big O reach in Texas Continued from page 3 partment at its Muscle Shoals fa- Continued from page 1 tunities, such as this one, where we tive that we consider our entire port- “We wanted to make sure we had cility for the product, and the rm Franchise Association (IFA) as a Big can share a new business venture with folio when evaluating opportunities,” a premium rubber compound to be could add to it, should sales in- O Tires franchisee of the year. franchisees that they may not other- TBC President and CEO Erik Olsen able to offer, as well as we wanted crease, according to Mr. Sandberg. John Kairys, vice president and wise have access to if they were not said. to be able to offer all sizes to the Having the nancial clout of general manager, Big O Tires, called af liated with the organization.” “We will now have the opportu- end users,” Mr. Sandberg said. “So Hexpol, a developer and manufac- Mr. Monteverde an “exceptional op- The deal expands the Big O Tires nity to serve consumers in the state we found a way to make it available turer of polymer compounds — in- erator” and said TBC is “fortunate" franchise network to 455 independent- of Texas through three retail great in all sizes that are currently being cluding proprietary and standard to have him and his team represent- ly owned and operated locations in brands — Big O Tires, Midas and available in the retread industry.” rubber compounds — has helped ing the Big O brand. 25 states. Texas is now the fth state NTB — at nearly 170 locations.” Mr. Sandberg said the product to bring the product to the market, “We are excited about the expan- where TBC has both company-owned This is the second major shift in has been well-received. Mr. Sandberg said. sion and the opportunity to serve the retail stores and Big O franchised branding by TBC in the past year or so. “The reaction has been nothing “We’re the only one to have this customers in the San Antonio and dealers. In November 2017 the company ceded short of phenomenal, from people type of system,” he said. “This is Corpus Christi markets while living TBC’s other major franchise brand, control of 44 company-owned NTB that have seen the product,” he said, reverse-compatible, with all of the up to our ultimate goal to be the team Midas International, reports having locations in Iowa, Kansas, Minnesota “both from end-users that have existing metal bands that are cur- you trust,” he said. 50 Midas locations in Texas, includ- and Missouri to Western Automotive started to test the product, as well rently being used in the market, so Brant Wilson, president and chief ing a dozen in the San Antonio area. Ventures Inc., an enterprise owned by as from our distributor partners there is no new investment that a operating of cer of TBC’s Franchise “As an organization with more than Big O Tires franchisee Mark Rhee, who are selling the product.” retread shop has to make in order Group, said TBC’s support of its fran- 3,200 retail locations, both compa- who also owns and operates 11 Big O Robbins created a separate de- to take advantage of the bene ts.” chise entities provides “unique oppor- ny-owned and franchise, it’s impera- Tires locations in Nevada.