Missions Accomplished Eat Into Tire Industry Reviews

INSIDE Material costs Infrastructure bill draws mixed Missions accomplished eat into tire industry reviews ...... 3 Conti adds tread rubber production Councils roll out tools, initiatives during makers’ pro ts to Mount Vernon site ...... 3 Tire Pros National Conference By Bruce Davis High-performance tire demand Tire Business staff growing in U.S...... 4 AKRON — With a few notable excep- tions, the world’s leading tire makers Commerce Dept. calls for stiff tar- took it on the chin last year, earnings iffs on steel imports ...... 5 wise, as higher-than-expected spend- Don’t underestimate body language, ing on raw materials ate into their op- writes Dan Marinucci ...... 7 erating results. Eight of the dozen major tire makers to report their scal 2017 results thus far recorded lower operating pro ts, while all but one, Cooper Tire Strut knowledge when selling & Rubber Co., reported higher sales. expensive shocks ...... 9-10 Continental A.G., Kumho Tire Co. Tenneco to launch videos on sus- Inc. and Pirelli & C. S.p.A. have yet to pension conversion kits ...... 11 report their 2017 results. Of the seven with lower operating Federal-Mogul moves Abex brake income, all cited elevated spending production to Ky...... 12 on raw materials — especially natural Brembo’s new facility to produce rubber — as a key reason for the pro t carbon brake pads, discs ...... 14 drop. Group Michelin was nearly in

Conti brings ATE brake parts to Tire Business photo Don by Detore the same league — its income rose 1.9 N.A. market ...... 14 Pat Fleischmann of Community Tire Pros of Phoenix talks with Bob Bittner, vice president of Tire Pros operations, percent — and it also cited higher raw during the eighth annual Tire Pros National Conference in San Antonio. Ms. Fleischmann, a member of the Cus- materials prices as a serious headwind. tomer Experience Mission-Based Council, discussed the development of Tire Pros’ new dealer playbook. Cooper and Goodyear also cited elevated manufacturing-related DEPARTMENTS By Don Detore program and an online dashboard benchmarking tool — costs related to reduced production Automotive Service ...... 7 Tire Business staff during the four-day event, attended by close to 1,000, at the volumes as contributing to the lower Classifieds ...... 19 JW Marriott San Antonio Hill Resort and Spa, Feb. 8-11. earnings picture. Commercial Tire Service .... 16-17 SAN ANTONIO — It was a little more than a year ago when Tire Pros of cials had one uni ed reaction to the work Besides Michelin, the companies Editorials ...... 6 four groups of American Tire Distributors’ (ATD) Tire of these groups: Missions accomplished. reporting higher earnings were Noki- On The Move ...... 15 Pros dealers began to meet regularly, each assigned a “I’m ecstatic over what they’ve done,” Ron Sinclair, ATD’s an Tyres P.L.C., Trelleborg A.B. and similar but distinctive task: Figure out opportunities senior vice president of retail strategy and partnerships, told Yokohama Rubber Co. Ltd. within their group’s topic to provide tools and services Tire Business following the conference, which also featured All of the companies reporting LATE NEWS for dealers to be more successful. a trade show with more than 55 vendors as well as several thus far were in the black on a net So it was quite tting that within short drive of The informational sessions on a variety of topics. basis, including Toyo Tire & Rubber Alamo, a one-time mission and historical landmark, that “I’m just really proud of the work that those councils Co. Ltd., which reversed its fortunes Conti taking steps these groups — called Mission-Based Councils (MBC) have done and the staff has done over the last 12 months.” from a loss in 2016. toward sustainable — revealed the fruits of their labors during Tire Pros’ According to Mr. Sinclair, the Tire Pros program num- The overall mood of those compa- eighth annual National Conference. bers 715 points of sale in 46 states. nies that offered guidance for scal NR sourcing Tire Pros of cials as well as representatives from each “There is a lot of change happening around us, and we 2018 was upbeat, if cautiously so. HANNOVER, Germany — Continen- MBC discussed the new tools — including a “playbook” don’t always realize it, but we have to get our hands around it Bridgestone, for example, is fore- tal A.G. and an international aid for best business practices, a revamped dealer evaluation See Tire Pros, page 20 casting gains in both income and sales agency are forming a partnership but cautions that uctuating currency designed to improve the sustain- exchange rates and raw material/feed- ability of the natural rubber (NR) stock prices along with an “ongoing supply chain in Indonesia. China regains No. 1 trading partner status lack of clarity” in the global economic The partnership with the Deut- situation will require careful attention. sche Gesellschaft für Interna- By Bruce Davis were the top three destinations for tires China’s gain over 2016 came from Michelin cautioned that raw mate- tionale Zusammenarbeit (GIZ) Tire Business staff exported from the U.S., accounting for higher shipments of OTR, farm and rials costs could rise again and a uc- G.m.b.H. will strive to develop nearly 72 percent of U.S. exports by other non-highway tires, according tuating currency-exchange situation a “criteria catalog” for sustain- WASHINGTON — The U.S. tire sector value. to the Commerce Department data. could impact earnings negatively. able production of NR, to train trade de cit shrank slightly last year On the import side of the ledger, China’s exports of passenger, light Those companies active in the OTR farmers in sustainable produc- as the value of exports shot up near- China regained the title as the U.S.’s truck and medium truck/bus tires, tire eld all noted a measurable up- tion in accordance with these ly 62 percent while the value of im- largest trading partner in tires, as the by contrast, all declined last year swing in demand, while the agricul- criteria and to track the rubber ports rose close to 10 percent in 2017 value of its overall exports to the U.S. from 2016, re ecting the continued tural tire sector is showing strength in from smallholders to production to a record $13.8 billion. jumped 28.2 percent to $1.95 billion imposition of elevated import duties some regions but not others. at Continental. As a result, the U.S. trade de cit a year after the value of its shipments on consumer tires and the shift by The companies’ individual reports Among the initiative’s aims in tires slipped to $9.66 billion last to the U.S. slid 1.9 percent. See Tire, page 22 follow, in alphabetical order: are improved rubber quality, year — down from $10 billion in higher yields and supply-chain 2016 — re ecting $4.1 billion in Bridgestone suffered a 6.8-percent See Conti -GIZ, page 22 exports and $13.8 billion in imports. drop in scal 2017 operating income It’s the rst time the tire sector trade to $3.74 billion on revenue of $32.5 Get up-to-date information at the de cit has shrunk in recent memory. China $1,949M 28.3% Cooper, Double Coin, Giti, Guizhou, Maxxis, Sailun, billion, cutting the operating margin Tire Business website Canada, Mexico and Australia Sentury, Triangle, ZC Rubber, etc. two points to 11.5 percent. Net income http://www.tirebusiness.com Thailand $1,860M 35.8% Bridgestone, Deestone, Goodyear, Linglong, Maxxis,Michelin, rose 8.6 percent to $2.57 billion. Otani, Sentury, Sumitomo*, Vee, Yokohama, ZC Rubber Bridgestone said its scal year played out against a scenario where Canada $1,544M -2.5% Bridgestone, Goodyear, Michelin many overseas economies showed S. Korea $1,344M -6.3% Hankook, Kumho, Nexen gradual recovery in the midst of continued political and economic insta- Japan $1,091M -7.6% Bridgestone, Sumitomo*, Toyo*, Yokohama bility. The company singled out rising Total $13,760M 9.7% demand in the mining industry along Source: U.S. Department of Commerce; Tire Business research *Sumitomo includes Dunlop and Falken brands; Toyo includes Nitto. See Major, page 18

White House post Trump’s infrastructure package,

Visit us on the web at www.tirebusiness.com TIRE BUSINESS, February 26, 2018 • 3 Highway to nowhere? Infrastructure bill draws mixed reviews from stakeholders By Miles Moore Half of the federal funds would be structure projects, with 80 percent of form federal education and workforce for not including a provision to buy Senior Washington Reporter used to create an Incentives Program the money coming from state and lo- development programs. materials and equipment from domes- to spur dedicated infrastructure funds cal governments instead of the federal “The growing U.S. tire manufac- tic sources for infrastructure projects. WASHINGTON — The Trump adminis- from states, localities and the private government. turing industry also relies on a highly “The ‘Donald’ made infrastructure tration’s infrastructure funding pro- sector, according to the fact sheet. It also would allow federal agencies skilled workplace to be successful, and investment a key part of his presiden- posal has elicited varying reactions Other projects earmarked are: to divest assets they judged would be USTMA is particularly encouraged by tial campaign platform,” AAM Digital from a full range of stakeholders, but • $20 billion for a Transformative better managed by state or local gov- the administration proposal’s attention Media Director Elizabeth Brother- the big question now is how far it can Projects Program to provide federal aid ernments or the private sector, such as to workforce development and appren- ton-Bunch wrote in a Feb. 12 blog piece. proceed in Congress. to innovative infrastructure projects; airports. ticeships,” Ms. Luke said. “Notably, (Mr.) Trump also said he “We desperately want to see an • $20 billion to expand infrastruc- Of the stakeholders who comment- The American Association of State would make sure our infrastructure infrastructure bill pass this year, but ture nancing programs; and ed on the Trump plan, one of the most Highway and Transportation Of cials would be built in the United States,” whether this bill could pass is hard to • $10 billion for a Federal Capital enthusiastic was Jay Timmons, presi- (AASHTO) said it looked forward to Ms. Brotherton-Bunch wrote. “After determine,” said Roy Little eld, exec- Revolving Fund that, in the words of dent and CEO of the National Associ- working with the Trump administration years of rhetoric from the president utive vice president of the Tire Indus- the fact sheet, would “reduce inef - ation of Manufacturers. on a long-term infrastructure package. that promoted the idea, Buy America try Association (TIA). cient leasing of federal real property, “It’s the kind of leadership manu- “We hope the release of the Trump is nowhere to be seen in the proposal.” Posted on the White House website which would be more cost-effective to facturers have wanted for a very long infrastructure plan can be a starting Meanwhile, the National Associa- on Feb. 12, the Trump infrastructure purchase.” time, and it could help us reclaim our point for a robust conversation on how tion of Truck Stop Operators (NATSO) package proposes committing $200 The remaining $50 billion would rightful place as a global leader on true best to make the critical investments in blasted the Trump plan for provisions billion in federal funds in the hope of go to a Rural Infrastructure Program 21st-century infrastructure,” Mr. Tim- surface transportation,” AASHTO Ex- that strongly encourage an increase spurring at least $1.5 trillion in infra- to support and modernize an area the mons said. ecutive Director Bud Wright said. in interstate tolls and commercialized structure investments from state, local White House fact sheet said “has been Anne Forristall Luke, president and Other groups, however, had sharp rest areas. and private funding involving roads, left behind for too long....” CEO of the U.S. Tire Manufacturers criticisms of the Trump plan. “Interstate tolls cost the government highways, bridges, railways, water- The infrastructure plan would re- Association (USTMA), praised the The Alliance for American Manu- signi cantly more to administer and ways and airports. verse the funding formula for infra- infrastructure plan’s provisions to re- facturing (AAM) faulted the president See Infrastructure, page 18 Conti adding tread rubber capacity at Mt. Vernon Point S network added By Bruce Davis Tire Business staff 20 U.S. outlets in 2017

MOUNT VERNON, Ill. — Continental Tire the Americas L.L.C. is add- PORTLAND, Ore. — The Point S Tire & Auto Service network ing capacity for precured tread rubber at its tire plant in Mount Ver- grew by 20 outlets last year — including a second dealer- non, allowing it to cut delivery times to its ContiLifeCycle retread ship in Alaska — and anticipates further growth in 2018 customers in the U.S. as the marketing cooperative ramps up distribution in the Up to now, Conti has supplied its licensed retread partners from a U.S. Heartland. plant in Morelia, Mexico, where capacity was expanded in 2015 to The new points of sale are spread over 11 states within meet growing demand for the company’s retreads. Point S’s existing distribution footprint, and each rep- Conti did not disclose the scale of the capacity being installed resents a business owner new to the Point S system. The nor its investment in the production line, which is expected to reach Continental Tire the Americas photo new stores push the Point S network past the 200-outlet commercial-scale operation by the end of the rst quarter. The plant Conti’s new tread rubber factory is housed in a new structure mark throughout 16 states. in Morelia has an annual capacity of 9,500 metric tons. next to its tire plant in Mount Vernon, Ill. Clint Young, director of sales and business develop- “Producing ContiTread retread rubber in the heartland of the ment at Point S U.S.A., said the number of new stores United States allows us to be closer to our customers and make we began the project, and a consistent quality mindset is what will “speaks to the power of Point S. New Point S locations products available even faster to our ContiLifeCycle retread part- continue to drive our future.” ners,” Paul Williams, Continental’s executive vice president of The rst tread patterns being produced at the Mount Vernon commercial vehicle tires in the Americas region, said. plant will be ContiTread HDL EcoPlus, HDL and HDR1. Mr. Williams noted that the ContiTread products use many of HDL EcoPlus and HDL are long-haul drive patterns. The HDL the same compounds as new tires produced at the Mount Vernon EcoPlus is designed to deliver low rolling resistance balanced with and existing members all made a powerful decision to plant, which operates one of the largest rubber mixing facilities in mileage, while the HDL is more focused on regional applications. join a group that exists to protect their independence, but North America. The HDR1 is a regional drive pattern with an open-shoulder de- our offerings also improve their ability to serve their cus- “Continental continuously strives for best-in-class performance. sign for enhanced wet and dry traction. tomers and connect with new ones.” The cornerstone of this performance is a commitment to outstanding The tread rubber production line — housed in a new structure The new Point S dealerships are located in quality,” said Catherine Loss, Continental’s head of retread worldwide. built adjacent to the Mount Vernon passenger tire factory — is un-  Alaska — Fairbanks; Conti, she said, is “focused on utilizing lessons learned from our ex- dergoing a start-up phase, during which each tread pattern must be  California — Eureka and Redding; isting plant in Morelia…to optimize the layout and ow of the plant.” measured and reviewed by the company’s research and develop-  Colorado — Durango; “The team has worked tirelessly to ensure the rst treads out of ment team before they can be released into the market, Conti said.  Idaho — Buhl, Idaho Falls and Montpelier; our Mount Vernon…plant are exactly what our customers need and At last report, there were 26 ContiLifeCycle retread plants oper-  Nevada — Winnemucca; expect from the ContiTread brand,” she added. “Quality is where ating in North America, including three that opened in 2017.  New Mexico – Farmington and Kirtland;  Oklahoma — Haskell and Stillwater;  Oregon — Clackamas, Junction City and Vale;  Utah — Duchesne and Salt Lake City; East Bay opens commercial service location in Ariz.  Washington — Port Orchard and Royal City; and YUMA, Ariz. — Wholesale and commercial including a pair of ing commercial and retail tire sales, tire  Wyoming — Buffalo. tire dealer East Bay Tire Co. (EBT) has R&G Tire Center service, and managing wholesale tire pro- Point S did not identify the dealerships that are new opened a service location in Yuma, its rst outlets. grams. converts. outside of California in the continental U.S. EBT has had a sales Prior to joining EBT, Mr. Figueroa was Point S’s growth moving forward will include recruit- EBT has had a temporary location in Ar- presence in Yuma for West Coast zone manager for Balkrishna ing dealers further to the east from the group’s existing izona for the last two years. years, according to Industries Limited (BKT), specializing in footprint, which goes as far east as eastern Oklahoma. The Yuma location, which will serve East Bay Tire CEO agriculture tire sales. In December, Point S struck a deal with Nussbaum customers throughout Yuma County and George Pehanick, but “We are pleased with the growth we’ve Distributing Inc. of Memphis, Tenn., to be its distribution neighboring Imperial Valley in California, “establishing a per- experienced in recent months in Yuma and partner for Point S member dealers the dealer coopera- will provide “the largest inventory of tires manent service center look forward to the many opportunities Ad- tive is planning to recruit as it moves eastward. and tire products,” according to the com- Figueroa will continue to help alino and his team will bring in 2018,” said Adding Nussbaum as a distribution partner provides pany, as well as offer eet service, 24-hour us maintain continu- John Hulsey, East Bay Tire general manager. Point S the capacity to add 50 stores to its network, ac- emergency assistance, tire foam lling and ity with the customers and businesses that The new location is east of the Yuma cording to Mr. Young. mobile tire press for solid forklift tires. transition from the Salinas Valley to Yuma Airport with access to Interstate 8. This deal gives Point S a fourth U.S. distribution center EBT, in its fourth generation of family throughout the year.” The company said it currently has no other in the U.S., complementing warehouses in Denver, Salt ownership, was founded in 1946 in Oak- Adalino Figueroa has been hired to man- plans to add more locations, but said it is “al- Lake City and Portland. land, Calif. It has eight service locations age the new service center. ways evaluating growth opportunities where Point S Tire held its annual owners meeting Feb. 22-26 in in northern California and four service According to EBT, Mr. Figueroa has 24 we currently have locations...if the opportuni- Hollywood, Calif., where the member-owned cooperative locations and a retread plant in Hawaii, years of tire industry experience, includ- ty arises, we will take advantage of it.” was expected to discuss details of its expansion aspirations. 4 • February 26, 2018, TIRE BUSINESS Visit us on the web at www.tirebusiness.com

U.S. demand grows for HP tires NEWS IN BRIEF AKRON — Demand for high-performance tires in the U.S. increased in half of the performance tire category. Toyo dropping ‘& Rubber’ 2017 for the eighth straight year, pushing their share of OE and replace- The OE share of performance tires increased ve points to 55.8 per- ment market shipments to nearly 56 and 44 percent, respectively, accord- cent, the USTMA data reveal, even though shipments to OE customers from corporate name ing to latest U.S. Tire Manufacturers Association (USTMA) data. actually slipped 4.1 percent to 25.2 million units. HYOGO, Japan — Toyo Tire & Rubber Co. Ltd. Aftermarket shipments The share rose because is changing its name to Toyo Tire Corp. to in the U.S. of tires H-rated overall shipments of OE reect the company’s increasing emphasis on and higher rose 9.1 per- passenger tires to North “mobility” at its core eld of business. cent last year to 92 million American light vehicle pro- The change is effective Jan. 1, 2019. units, a volume that rep- ducers fell even more, 6.9 Toyo said the change will help “further resents 44 percent of all percent, reflecting a drop in accelerate the increase in corporate value by aftermarket shipments, up production in 2017 in North expanding the global business and strength- from 41 percent in 2016. America of cars, SUVs, ening the brand business….” Aftermarket shipments light trucks, etc. to 17.2 mil- The company, which moved to new head- of H-rated tires jumped lion units. quarters in Hyogo last May, disclosed in 11.7 percent to 48.8 mil- The shift at OE is also August last year that it was divesting major lion units; V-rated tires reected in the breakdown portions of its chemical industrial products rose 8.4 percent to 25.8 of OE tire sizes, where the business unit to fellow Japanese companies million units; and Z-rated 10 most popular sizes are Nitta Corp. and Sekisui Chemical Co. Ltd. edged up 3.6 percent to now all 17-, 18- or 20-inch The businesses being divested represent 17.4 million units. rim diameters, including about $235 million in annual sales, according Imports of tires with 17- two — 235/60R18 and to Toyo’s scal 2017 results. inch and higher rim diam- 245/60R18 — that are new eters jumped 13 percent to the top 10. Vogue Tyre recalls 1,203 last year over 2016 to 46 Another form of per- million units, according to U.S. Department of Commerce data. formance tire — winter/traction tires — didn’t fare so well, the USTMA tires for incomplete TINs The import data don’t show speed ratings, so tires of this size don’t nec- data show. Shipments of designated winter tires slid for a second straight WASHINGTON — Vogue Tyre & Rubber Co. is essarily correspond to the H-rated and above category, but a generalized year — by about 36 percent — and accounted for just 2.1 percent of all recalling 1,203 Signature V radial light vehi- comparison can be drawn, thus showing that imports represent roughly replacement car tire shipments last year. cle tires manufactured in 2017 because their tire identi cation numbers (TINs) have missing production date codes. Conti adds UHP tire The tires were manufactured for Vogue by Goodyear ad honors China’s Sailun Group at its plant in Tay Ninh Province, Vietnam, Vogue told the National Earnhardts’ legacy to General portfolio Highway Traf c Safety Administration. NEW ORLEANS — Continental brands, he said. During 2017, Sailun transferred the man- DAYTONA BEACH, Fla. — Goodyear debuted a television commer- Tire the Americas’ General Tire The G-Max RS features Stabili- ufacture of those tires from its headquar- cial during Fox Broadcasting’s coverage of the 2018 Daytona brand has added a summer ul- Tread Technology, which provides ters facility in Qingdao, China, to the plant 500 that hit home for die-hard NASCAR fans and sports fans tra-high performance (UHP) tire a larger footprint and optimized in Vietnam, Vogue said. The defect result- in general. to its portfolio, the G-Max RS. pattern stiffness for even wear; ed from human error during the transfer, The 30-second spot, called “Make “We’ve designed this SmartGrip Technol- it said. a Name,” weaves together the leg- tire with the driving ogy with a center rib The tires in question were made in Viet- acy of Dale Earnhardt Sr. and Dale enthusiast in mind. Our for improved steer- nam between July 3 and Nov. 26, 2017, the Earnhardt Jr., two NASCAR legends, ‘smart technologies’ ing response; stable company said. as the younger Mr. Earnhardt grows offer impressive perfor- shoulder blocks for In January, Vogue visually inspected the into a driver who strives to honor his mance in dry and wet grip; and a silica-rich tires and found the missing date codes, it said. father’s name. conditions while our summer compound Vogue will replace all the tires free of visual alerts provide with directional tread charge and reimburse customers for all ex- Earnhardt Jr. The commercial aired for the driving con dence,” grooves for wet grip. penses related to the recall, including labor rst time nationally Feb. 18 on the 17th anniversary of the said Travis Roffler, The tire also has and freight, according to the NHTSA safety death of the elder Mr. Earnhardt, who was killed in a colli- General Tire director a Replacement Tire recall report. The recalled tires will be brand- sion during the nal lap of the 2001 Daytona 500. Mr. Earn- of marketing. Monitor, a visual in- ed with the date codes as required by law, the hardt won seven NASCAR cup championships and 76 cup The Tier 2 value- General G-Max RS dicator imprinted in report said. races during his career, including the 1998 Daytona 500. brand tire is General’s the tread’s center rib Customers may call Vogue’s customer ser- Mr. Earnhardt Jr. retired in 2017 at age 43 after winning 26 rst entry in the summer product that, when worn to 2/32nd inch vice line at 800-323-1466. races, including the Daytona 500 in 2004 and 2014. During his category in recent years. of tread depth, will read “replace 17-year career, fans voted him NASCAR’s Most Popular Driv- Based on company testing, the tire.” Yokohama to double tire er 15 times. Mr. Earnhardt has been a spokesman for Good- tire performed better in dry and The tire lineup will comprise year for three years. wet handling and had 35-percent 50 sizes covering 16- to 20-inch capacity at Indian plant longer tread life than competing rim diameters. HARYANA, India — Yokohama Rubber Co. Ltd. is planning to double annual capacity for pas- X senger tires at its Yokohama India Pvt. Ltd. Conti unveils next-gen Grabber A/T tire subsidiary over the coming 18 to 20 months with a $60 million investment. NEW ORLEANS — Continental Tire the Americas has introduced the three metric sizes in 16- to 20-inch rim diameters. The tire carries The project, which will boost the 3-year- next generation General Grabber all-terrain tire, the A/TX, which a 50,000-mile treadwear warranty on otation and LT-metric sizes. old plant’s annual capacity 118.6 percent to will replace the A/T2 in the Grabber lineup. 1.53 million tires, is designed to help the The Grabber A/TX, available March 1, is described as an aggres- company “avoid capacity shortfalls” in light sive all-terrain tire that provides off-road capability and durability of India’s strong sales growth projections. with on-road performance. The expanded plant in Haryana will pro- “The Grabber A/TX is designed for the all-terrain enthusiast who duce passenger and SUV tires for both OE demands off-road capability balanced with on-road performance,” and replacement markets, YRC said. said Travis Rofer, director of marketing for General Tire. Construction of the new facilities is expect- The tire features “aggressive” styling with raised solid white letters ed to start in March with production sched- and offers year-round traction for all weather conditions, he added. uled to begin in the fourth quarter of 2019, The Grabber A/TX complements the less aggressive Grabber APT, YRC said. unveiled last year, and adopts the more aggressive Grabber X3’s side- wall styling, Conti said. The tire features DuraGen Technology for even wear with cut Volume 35, No. 24—Tire Business (ISSN 0746-9071) is pub- and chip resistance; traction notches for added grip in dirt, snow lished biweekly by Crain Communications Inc. at 1725 Merriman Road, Suite 300, Akron, Ohio 44313. Periodicals postage paid at and loose surfaces; stone bumpers to help release stones and debris; Akron and additional mailing offices. Postmaster: Send address Comfort Balance Technology with a tread cushioning system and an changes to: Tire Business, Circulation Dept., 1155 Gratiot Ave., acoustic tread pattern for a quieter ride; and Stabiltread Technology Detroit, Mich. 48207-2912. with a larger footprint and optimized pattern stiffness to promote Subscription rates: U.S., $79—one year; $148—2 years; group even wear and long tread life. rates available. Surface delivery—to Canada, 1 year—$107 (includes GST); to all other countries, $119 per year. Four weeks The tire carries the Three-Peak Mountain Snowake winter trac- notice required for change of address. Single copy—$4. Ca- tion symbol on all of its 40 sizes and is studdable. Tire Business photo Kathy by McCarron nadian Post International Publications Mail Product (Canadian The tire will be available in 27 LT-metric sizes in 15- to 20-inch X on Distribution) Sales Agreement #40012850, GST #136760444. Tire dealers and journalists run the new General Grabber A/T Canadian return address: 4960-2 Walker Road, Windsor, ON rim diameters; 10 otation sizes in 14- to 20-inch rim diameters; and an off-road course in New Orleans. N9A6J3. Printed in U.S.A. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, February 26, 2018 • 5 Commerce calls for stiff tariffs on steel imports

By Miles Moore ican workers and Luke said. “Otherwise, unfair trade and critical infrastruc- Senior Washington Reporter our economy “USTMA members must retain the Washington ture improvements.” from unfair trade the capability to import the special- swamp will be “Immediate action providing ef- WASHINGTON — The U.S. Depart- practices that ized steel products that are vital to lled with im- fective relief is necessary,” USW ment of Commerce is recommend- threaten our eco- making tires in the United States.” porters trying President Leo Gerard said. ing imposing elevated tariffs on nomic and na- The amount of steel consumed by to undermine In the area of aluminum, Com- steel imports into the U.S., encour- tional security,” the U.S. tire industry in 2016 totaled American jobs.” merce recommended a tariff of at aging representatives of the domes- Anne Forristall just shy of 430,000 metric tons, the The United least 7.7 percent on all aluminum tic steel industry but alarming U.S. Luke, USTMA USTMA said, or roughly 1 percent Steelworkers imports from all countries; a tariff tire manufacturers dependent on im- president and of U.S. crude steel production. union (USW), of 23.6 percent on all aluminum ported tire-grade steel used to make CEO, said about The Alliance of American Man- which represents products from China, Hong Kong, tire cord. the Commerce Forristall Luke ufacturing (AAM) hailed the Com- workers in both Paul Russia, Venezuela and Vietnam; or On Feb. 16, Commerce released report. merce report. the steel and a quota on all aluminum imports reports on its investigations of how “However, we are concerned that “Trump is one step away from tire industries, said it commended into the U.S. equal to 86.7 percent of steel and aluminum imports are af- the Department of Commerce’s taking historic action to defend the DOC’s interpretation of the 232 their 2017 exports. fecting national security. recommendations may have unin- American jobs and security,” AAM statute’s de nition of national secu- Mr. Trump has until April 11 to The agency carried out the investi- tended consequences for domestic President Scott Paul said. rity to include critical infrastructure make a decision on steel remedies gations under Section 232 of the Trade tire manufacturers and the workers “Any exclusions deserve appropri- and is urging Mr. Trump to “take and until April 19 on aluminum Expansion Act of 1962, which empow- and industries they support,” Ms. ate scrutiny,” Mr. Paul said. quick and comprehensive action on remedies. ers the federal government to regulate imports of goods and materials that might threaten national security. In its report on steel, Commerce found that the U.S. is the world’s largest importer of steel, with steel imports outstripping exports by nearly four to one. Total worldwide excess capacity in steel is 700 million tons, nearly seven times annual U.S. steel consumption, the report said. China alone produces nearly as much steel in a month as the U.S. does in a year, Commerce said. For certain types of steel, such as for electrical transformers, only one U.S. producer remains, it said. Six basic oxygen furnaces and four electric furnaces have closed since 2000, and employment in the domestic steel industry has dropped 35 percent since 1998, according to the report. It is now up to President Trump to determine what actions should be taken. Commerce recommended three alternative remedies: y A global tariff of at least 24 percent on all steel imports from all countries; yyA tariff of at least 53 percent on all steel imports from 12 countries — Brazil, China, Costa Rica, Egypt, India, Malaysia, South Ko- rea, Russia, South Africa, Thailand, Turkey and Vietnam — with a quota from all other countries equal to 100 percent of their 2017 exports to the U.S.; or y A quota on all steel products from all countries equal to 63 percent of each country’s 2017 exports to the U.S. The report also recommended an appeal process by which affected U.S. parties may seek an exclusion from tariffs or quotas. According to the report, Com- merce would grant exclusions based on lack of suf cient U.S. production capacity for speci c steel products, or on speci c natural security-based considerations. Since early in the investigations, the U.S. Tire Manufacturers As- sociation (USTMA) has testi ed that placing tariffs on imported tire-quality steel wire rod, cord and bead wire could cause substantial harm to the U.S. tire manufacturing industry. Virtually all steel cord used in U.S. tire manufacturing is produced with imported steel rod, the UST- MA said, and domestic steel pro- ducers cannot meet the volume or quality demands of the tire industry. “We support the need to protect Amer- 6 • February 26, 2018, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Opinion

Brennan Lafferty Repair shops may need shock therapy V.P./group publisher hen you visit a doctor tires, brakes, suspension and steering encourage customers to replace However, many repair shops seem EDITORIAL STAFF 330-836-9180 FAX: 330-836-2831 with abdominal pain, — work in concert to keep the vehicle such vital parts for safety reasons, to be underselling shocks and struts you expect him or her on the road and under the driver’s con- they seem more reluctant to dis- as part of routine maintenance. David E. Zielasko W V.P./publisher, Editorial director to check more than just your stom- trol. But if any of those parts is worn cuss the routine replacement of No doubt the aftermarket service ach or gall bladder — you expect down, it negatively expensive shocks/ industry is self-conscious about Donald J. Detore to get a more holistic approach that impacts the traction struts. consumer distrust amid reports of Editor checks all your abdominal organs on the road and These parts usu- dishonest repair shops recommend- Bruce Davis to diagnose the problem as well braking distance. ally are replaced ing unnecessary parts replacement. Special projects reporter as spot any dangerous underlying That’s why ride OUR VIEW when they are no- But when a customer’s safety is Miles D. Moore condition that could lead to a seri- control suppliers ticeably worn out at risk, the service shop is obligat- Senior Washington reporter ous health issue. are encouraging repair shops to give or broken — long after the recom- ed to inform the customer of the Kathy McCarron Auto repair technicians should consumers a full undercar inspection mended replacement mileage of about condition of all parts of their vehi- Reporter approach the examination of a and report on their vehicles and alert 70,000 miles. With the average age of cle, how the worn parts can impact Michael McCrady vehicle’s ride-control system in them when any of those parts are vehicles on the road hovering around the total optimum operation of the Art director/page designer the same holistic fashion, ac- worn and need replacement. 11 years, repair shops undoubtedly are vehicle and how that in turn could INTERNET STAFF cording to the parts industry. While many shops routinely seeing many vehicles with way more impact the safety of the vehicle. Erin Pustay Beaven The vehicle’s ride-control system — note tire and brake pad wear and than 70,000 miles on the odometers. Shocks and struts offer more Online content editor than just ride comfort. They ab- Mark McCarron sorb the roughness of the road Digital coordinator so tires keep in constant contact PRODUCTION/IT STAFF with the road, enabling effective braking and steering control. Scott Merryweather But they wear down gradually, Media services manager and like some cancers, the symp- Anthony DiPonio toms are not noticeable to the aver- Chief information of cer SALES STAFF age motorist until the worn struts 330-836-9180 FAX: 330-836-1005 start impacting other functions of the vehicle, such as traction and Christine Zernick braking distance. Sales manager That’s why it is important for shops Bill Rodman to recommend routine replacement Sales representative of shocks and struts as part of main- Ryan Tozzi taining vehicle performance. Sales representative The price of such service can be Brooke Stender a shock to the customer, but when Classi ed sales representative the facts are properly explained, the Lori DiFrancesco shock is a better alternative to the Sales and conference coordinator possible crash that could happen with MARKETING & EVENTS STAFF a dysfunctional ride control system. Sarah Arnold Marketing & events manager FORUM Sally Dietz Assistant trade show manager Consumers must know origins like unit from a low-cost provider can be stagger- Keeping customers safe AUDIENCE DEVELOPMENT ing. In the case of a strut assembly, for example, of parts they choose Peggy Fisher, your lubrication for hub-piloted wheels Jennifer Mosley several “invisible” characteristics — grade of steel, Group director, Audience development I want to commend Tire Business and con- seems to be what has been stated in manuals that I type of spring technology, internal valving design, For new subscriptions or change tributing writer Dan Marinucci for the Jan. 29 and more — can determine how satis ed, and per- have read in past years. Then you state lubricant val- of address write to: column titled, “Monitoring parts origins makes haps even how safe, your customers might be. ues can vary greatly with wide temperature swings. Circulation Department, Tire Business dollars and sense.” Ask yourself, would you install the part on Prior to some 10 years ago we did not lubricate 1155 Gratiot Ave. Every member of the auto service industry, the ange and threads at all. We had one failure in Detroit, Mich. 48207-2912 your own vehicle? or call (877) 320-1716 (U.S. and from manufacturer to service provider, plays a In an age when many technicians and consum- some 25 years. We told that customer he needed Canada only) or (313) 446-0450. vital role in delivering the quality, reliability ers might assume most replacement parts are man- all new hardware and he signed off even after our FAX: (313) 446-6777 and value expected by today’s vehicle owners. ufactured in China and other low-cost countries, I warning. The studs came loose 30 days later. email: [email protected] The parts and other products we design, man- am proud to report that Monroe shock absorbers, We work out on the highway a lot during ex- For single copy sales: ufacture, specify and install are central to our struts and Quick-Strut assemblies are designed by treme cold snaps and we make a big deal about email: [email protected] industry’s value proposition. They can also af- clean wheels, studs that are worn as well as nuts. our engineering team in Monroe, Mich., and orig- Reprints: fect the consumer’s safety. inate in our manufacturing, product assembly and According to the wheel manufacturers, they say it is the sum of all the components as to their Lauren Melesio Given these facts, it is imperative that tire deal- distribution facilities in Paragould, Ark. 212-210-0707, email: [email protected] ers and, yes, consumers know the origins of the We’re committed to U.S. manufacturing and condition that is the deciding factor in allowing parts they choose. proud of it. the truck to proceed after servicing. EXECUTIVE OFFICES Where were they produced and by whom? We have been in business since 1946. We think John Perrin 1725 Merriman Road, Suite 300, we are doing our part in keeping our customers safe. Are they from established brands? Do the man- Executive Director, Product Management, Akron, Ohio 44313-5283 ufacturers stand behind their products? North America Aftermarket Peter Corrigan (330) 836-9180 The differences between one part and a looka- Tenneco Inc. Utica N.Y. FAX: (330) 836-2831 CRAIN COMMUNICATIONS INC

Letters to the Editor Keith E. Crain Mary Kay Crain Tire Business encourages letters to the edi- Chairman Vice chairman tor on any subject of interest to independent KC Crain Chris Crain tire dealers. Send a letter to: Editor, Tire President Senior executive vice Business, 1725 Merriman Road, Suite 300, president Akron, Ohio 44313-5283. Letters also can be Lexie Crain emailed to [email protected]. Armstrong Robert Recchia Secretary Chief nancial of cer Letters must be signed and may be edited 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, February 26, 2018 • 7

AUTOMOTIVE SERVICE Don’t underestimate body language By Don Marinucci were blocking the sale. mate. Please ask because there are no One ongoing concern of mine is a salesper- Finally, let me re-emphasize a step silly questions when it comes to earn- ccurately interpreting a pros- son who will not or cannot recognize vital that savvy salespeople have taught me: ing your trust and your business.” pect’s body language may be Don’t be afraid to ask questions in or- This isn’t a fool-proof way to reach Athe key to closing a dif cult clues from the prospect’s body language. der to uncover unstated objections. the actual objection. After all, some sale. Suppose the prospect’s body lan- people ultimately never admit why Watch for meaningful nonverbal referrals. selling them needless maintenance guage telegraphs confusion, disbe- they’re not buying. clues that the motorist is seeking ad- Interestingly enough, they told me, and repairs. lief, etc. However, carefully responding to ditional information or reassurance were the comments these referrals These kinds of comments cannot be If so, politely and nonchalantly common nonverbal clues may be the about the pending transaction. made. bought with millions of bucks in adver- probe for the objection. For example: shortest route to revealing and address- For years, I have observed inter- For example, referrals from Mr. or tising. Rather, these were earned the “Forgive me, ma’am, you look unsure. ing genuine objections to the sale. Try it. actions between motorists and ser- Ms. Convert state they were assured hard way via solid interpersonal skills. I’d be happy to describe the condition vice salespeople. One reason is that that service advisers would take the These comments were earned by a different way for you.” Dan can be reached via e-mail I sold equipment to automotive ser- time required to explain problems sales pros who sensed the uncertain- Or perhaps your probe would begin at [email protected]. His vice facilities in a former life. and nobody would talk down to them. ty or confusion and politely but per- with something like, “Sir, I sense you previous columns are available at www.tirebusiness.com. Another reason has been my prac- They were told that no one would try sistently addressed those emotions that have other questions about the esti- tice of gathering in-shop data and information. One ongoing concern of mine is a salesperson who will not or cannot rec-

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

ognize vital clues from the prospect’s body language. No, I don’t claim to be an infal- lible interpreter of the human condition — especially folks who may be purchasing tires and auto repairs. But all too often, I see a struggling salesperson who doesn’t seem to notice telltale, nonverbal messages. These include customers who roll their eyes, fail to maintain eye contact, cross their arms, scratch their heads and/or look bewildered. To be fair to all readers, countless transactions occur smoothly and very quickly. In fact, many service salespeople I have encountered are spoiled by quick sales; they become easily frustrated when it actually takes effort to close a sale. They privately concede that motorists who ask questions — require explanations — are either mental midgets or distrustful types that no salesperson could satisfy. However, many prospects are reluctant to admit it, but they believe they’ve been taken advantage of in previous LISTEN TO TIRE TALK @ transactions at auto service facilities. What’s more, the complexity of TIREBUSINESS.COM/SECTION/AUDIO the vehicle intimidates them. Often, they’re really just searching for a service provider they can believe in — people they can trust. I’ve been fortunate to work with and observe some very talented service sales pros. Several of them have emphasized that “converts” may become the business’ most-loyal customers. They de ne a convert as a confused, doubtful motorist whom they won over by exceeding expectations. WHAT TIRE OR AUTOMOTIVE SERVICE The way they exceeded expectations was by recognizing this person’s non- ISSUES MOST INTEREST YOU? verbal clues. Then they committed extra time to uncovering objections this car DO YOU HAVE A TOPIC THAT YOU WANT TO LEARN owner was reluctant to discuss at rst. What’s more, these service sales- MORE ABOUT FROM OUR INDUSTRY EXPERTS? people emphasized that their converts consistently generated high-quality E-MAIL US AT [email protected]. 8 • February 26, 2018, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Cooper signs TBR off-take deal; to open 2 warehouses By Bruce Davis na, and from an offtake agreement with tribution centers. Tire Business staff Prinx Chengshan (Shandong) Tire Co. The warehouse offers the option to that’s scheduled to expire in mid-2019. add 400,000 more square feet of space FINDLAY, Ohio — Cooper Tire & Rubber “Cooper has been expanding our as needed, Cooper said. The site will Co. has struck an off-take production TBR business in both the replacement be the company’s largest distribution deal with Sailun Vietnam Co. Ltd. for the and original equipment segments,” center in the U.S.; Cooper anticipates supply of radial truck and bus tires (TBR) Cooper President and CEO Brad hiring about 100 workers there. through 2020, giving Cooper a third Hughes said. “This new facility will enhance our 4 Wheel Parts opening source for truck tires it sells under the “The Sailun facility in Tay Ninh, logistics infrastructure, which supports Roadmaster, Dean and Star re brands. Vietnam,…is a state-of-the-art plant our efforts to offer exceptional service stores in Ill., Pa. and Texas At the same time, Cooper disclosed to our customers by helping us get tires plans to open a pair of warehouses — to them when and where they want COMPTON, Calif. — Off-road per- ary, the Compton-based subsidiary a 400,000-sq.-ft. facility in San Ber- them,” Bob Sager, Cooper’s director of formance specialist 4 Wheel of Polaris Industries Inc. said. nardino, Calif., this spring dedicated supply chain, said. Parts opened retail stores in Illi- 4 Wheel Parts is planning to open to distributing commercial tires to its with an experienced team that is com- “This facility is a complement to our nois, Pennsylvania and Texas in a second Chicago-area retail store in customers in North America, and a 1 mitted to outstanding product quality. current U.S. distribution network that mid-February, expanding its store March, in Naperville, Ill. The South million-sq.-ft. distribution center in We look forward to working with them includes six regional distribution centers network to 87 locations in the U.S. Elgin, Naperville and Beaumont Byhalia, Miss., this fall to enhance its as we continue to grow our TBR busi- and three plant manufacturing ware- and Canada. stores are conversions of existing logistics infrastructure. ness and meet customer demand for houses, adding to our capability to be The new stores are located in retail properties, while the Carlisle Sailun Vietnam, a subsidiary of Chi- our products.” exible and responsive,” Mr. Sager said. South Elgin, Ill., Carlisle, Pa., and store is a green eld construction. na’s Sailun Group, has been producing Cooper did not disclose nancial Byhalia is a community of about Beaumont, Texas, according to 4 The Beaumont store is 4 Wheel tires at its plant in Tay Ninh Province, terms of the three-year agreement 1,300 inhabitants in northwestern Wheel Parts, which said more store Parts’ 12th in the Lone Star State, Vietnam, since early 2014 and has with Sailun. Mississippi, just 30 miles southeast of openings are imminent in these while the Elgin and Carlisle stores committed $200 million more for a Cooper noted that the facility in Memphis, Tenn., near the junction of states and elsewhere. are the company’s rst in Illinois second plant at that site for radial truck Mississippi, currently under construc- Interstates 22 and 269. The Carlisle location, adjacent and Pennsylvania. and OTR tires. tion, will allow it to consolidate and As such, the new warehouse is centrally to the rm’s Northeast distribu- The new stores’ grand-open- Cooper also manufactures truck/bus distribute products more ef ciently, located among Cooper’s U.S. tire plants in tion center, is the rst of a num- ing events featured exclusive tires at its Qingdao Ge Rui Da Rubber delivering both directly to customers Findlay, Ohio, Texarkana, Ark., and Tupe- ber of stores projected to open in grand-opening discounts, instal- Co. Ltd. joint venture in Qingdao, Chi- as well to its six existing regional dis- lo, Miss. Cooper will lease the facility. the region and be supported by the lation specials along with multiple 205,000-sq.-ft. warehouse/distri- promotions and giveaways, 4 Wheel bution facility that opened in Janu- Parts said. Yokohama eyes 1.6% annual sales growth through 2020 Bolt On integrating TOKYO — Yokohama Rubber Co. Ltd. is projecting rela- panding truck/bus tire position in North America, pro- BAYiQ loyalty platform tively modest growth of roughly 1.6 percent a year through mote ultra-wide-base tires and continue to build the 2020 while maintaining a 10-percent operating margin. off-highway business that it bolstered twice in the past 18 PHILADELPHIA — Automotive service Once a customer is registered, the Yokohama disclosed its long-term goals recently as months via acquisition (Alliance Tire Group and Aichi software solutions developer Bolt On customer rewards icon allows the part of its Grand Design 2020 Medium-Term Manage- Tire Industry). Technology L.L.C. has begun integrat- shop to show reward status automat- ment Plan, which outlines the rm’s strategy and goals • Non-tire businesses — concentrate resources on sec- ing BAYiQ Inc.’s customer loyalty incen- ically and apply discounts to the in- through scal 2020 as the company starts its second cen- tors where Yokohama asserts a competitive edge, such as tive tracking platforms into its products. voice, Bolt On said. tury in business. hose assemblies and sealants. By integrating BAYiQ’s product — Attracting customers is only half of The rm’s GD-2020 plan is in GD-2020 also stresses three nan- which is designed for independent tire the battle in today’s market, Bolt On effect a re-boot of its GD-100 plan, cial priorities — reducing interest-bear- and auto service dealers — said. Keeping those newly which saw Yokohama fall short of ing debt and idle assets, revitalizing with Bolt On’s platform, won customers happy and the targets it announced in 2005 — Yokohama’s corporate culture through the partners said they ex- loyal is just as important. sales of 770 billion Yen ($6.9 bil- human resources measures for energiz- pect to help independent Philadelphia-based Bolt lion at current exchange rates) and a ing the company’s organization, and dealers increase their cus- On Technology designs 10.4-percent operating ratio — in the minimizing corporate risk through sys- tomer-retention rates. software solutions that runup to its centennial in 2017. tematic management. “By partnering with address the most common YRC is basing its 2020 projections Among speci c goals, YRC said it a team that focuses on struggles facing the auto- on a number of macroeconomic fac- expects to generate a cash ow over the nding and retaining motive repair and main- tors, including annual growth of 1.9 percent in unit vehicle coming three years of nearly $1.8 billion, while also re- customers, our integra- tenance Industry. Mesa, production and 3.2 percent growth in tire demand. At the ducing interest-bearing debt and maintaining a sharehold- tion with BAYiQ’s loyalty program Ariz.-based BAYiQ is described as a same time, YRC anticipates escalating competition as tire er payout ratio of 30 percent. Investment will take place increases annual visitation rates and “business growth machine” designed makers in emerging economies increase production. within the scope of depreciation. ARO, while decreasing defection for independent tire and auto service To achieve its 2020 goals, YRC has identi ed a number In human resources management, YRC said it is work- to other service providers,” Bolt On dealers. of key business areas for growth: ing to revitalize its organization by training and mobilizing Technology CEO Michael Risich said. The product itself is cloud-based, • Consumer tires — position the company in the premi- human resources effectively, including identifying ways of BAYiQ’s loyalty platform will inte- which allows dealers to sign up loy- um segment, including tires for high-end premium-grade promoting fuller participation by women in the workplace. grate with Bolt On’s Report Pro, which alty customers seamlessly through cars, winter tires (both studless for Japan and Europe and In the GD-2020 document, YRC acknowledges it fell works with Mitchell 1, RO Writer 1.x their point-of-sale system, manage studded for northern Europe and Russia) and “hobby” tires short of the GD-100 goals, noting that earnings growth in & 2.x and NAPA management sys- online Google reviews, take online ap- (off-roading, racing, rallying, classic cars, etc.). Customer the nal phase of the 12-year plan was sluggish due to es- tems, Bolt On said. This loyalty pro- pointments from mobile devices and communication — tapping into motoring lifestyles. calating price competition and a surge in capital spending gram will not be available in unsup- computers and manage audience mar- • Commercial tires — leverage the company’s ex- and corporate acquisitions. ported management systems, or if a keting efforts through Facebook and shop does not partner with BAYiQ. custom email promotions. Federated, Pronto to hold joint meeting April 9-12 GRAPEVINE, Texas — Federated Auto Parts and er under one roof for what promises to be a very on-one supplier meetings, a combined vendor forts and resources of the Federated and Pronto National Pronto Association are planning to com- informative and productive series of meetings and booth show and informational breakout ses- program groups on behalf of their respective bine their respective member meetings at a single events,” said Larry Pavey, CEO of Automotive sions where they will be updated on data and in- members. The combined organizations operate venue for the rst time since they allied under a Parts Services Group, the combined Federated/ formation systems, national account programs, at more than 5,000 locations in North Ameri- common banner in 2015. Pronto entity identi ed as the “The Group.” new supplier programs and other business pro- ca with estimated member revenue of approxi- The combined Pronto/Federated spring mem- “We continue to see how the power of col- cess improvements. mately $7 billion. ber meeting will take place April 9-12 at the laboration has had a positive impact on business Neither details of the program nor speakers’ Staunton, Va.-based Federated is considered Gaylord Texan Resort and Convention Center in for both members and suppliers,” he said. “This names have been released. one of the largest auto parts distribution and mar- Grapevine, where Pronto is headquartered. meeting will provide an excellent opportunity for The organizers anticipate good attendance keting organizations in North America. “Following two previously contracted meet- attendees to learn from each other, strengthen re- due to combined opportunities and the conve- Pronto is an automotive program distribution ings held in separate locations, we are looking lationships and identify ways to prosper together.” nient central location. group with 92 shareholder members, focused on forward to having members of The Group togeth- Members from both groups will attend one- The Group was created by merging the ef- marketing, technology and buying. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, February 26, 2018 • 9

Strut your knowledge when selling shocks By Kathy McCarron It’s also not in the customer’s mind- Tire Business staff set to replace shocks/struts automati- cally at 100,000 miles, following the ith the average age of vehi- adage that if it doesn’t seem broken, cles on the road in the U.S. don’t x it. Wsurpassing 11 years, and “When your car gets that old, it’s considering many of those vehicles’ not just shocks and struts, it’s about odometers have clocked more than everything on it — ball joints, control 100,000 miles, one would think shock/ arms — there becomes more safety strut replacement sales would be going concerns,” he said. through the roof. “I think there is a big lack of doing But they are not. (inspections)…,” noted Mr. Fuchs, A reluctance on the part of tire deal- adding, “Education at the technician erships and repair shops to sell such level is really, really important.” an expensive service to cost-conscious “You would be amazed at how consumers is partly to blame, industry often we hear from consumers that representatives told Tire Business. their service providers have never in- Manufacturers of shocks and struts formed them of the need to replace recommend replacing the original worn shocks and struts,” said Ethan equipment parts after around 50,000 Bregger, aftermarket training man- to 75,000 miles, depending on vehicle ager, North America aftermarket, for and driving conditions. Tenneco Inc., maker of Monroe-brand ZF AftermarketZF photos Yet many older vehicles are still run- parts. ZF Aftermarket offers training to repair shops on shocks and struts service. ning on their original shocks/struts, and “This is a missed opportunity for that poses a safety issue, they said. the service industry.” comes on the dash that says, ‘Your least afford a new vehicle? They’re “But on top of that, the condition “I bet north of 80 percent of vehi- electronic stability control is activat- starting out with a used one and buying is almost invisible to the motorist cles never get one set (of replacement A holistic approach ing 10 times more frequently than it 70,000-, 80,000-, 100,000-mile vehi- because the performance of ride con- shocks/struts),” said William “Mac” did when the car was new.’ So at some cles that haven’t been maintained, and trol degrades quite gradually, in most McGovern, director of marketing and KYB, ZF Aftermarket, Tenneco point that bandwidth that the safety they assume that because it has elec- cases, and the motorist doesn’t know training, KYB Americas Corp. and other parts suppliers are encour- system can work within to keep the tronics, they’re safe. Well, they’re not.” they have a problem until, maybe, “A lot of aging auto repair shops to adopt a driver safe reaches the end.... Steering systems, tires, shocks they crash the vehicle and realize they customers ar- holistic approach to undercar service “A bald tire won’t stop a vehicle, and struts all have to be in working didn’t have all the control over it that en’t going to by training their technicians and com- and the best safety system in the world order in the vehicle for the brakes they should.” come in to municating to customers how shocks/ is not going to work. You’re still go- to work properly. Typically, struts He said the company tries to help buy shocks or struts, brakes and tires all work to- ing to crash,” Mr. McGovern said. “It are on the front axle of the car, and dealers who struggle with overcom- struts just for gether to stop a moving vehicle. doesn’t just stop at tires. Anything that standard shocks are in the rear. Sev- ing the obstacle of: “How do you sell the sake of “Unfortunately, I would have to affects traction has a negative effect on eral SUV models have struts on all this stuff because it is really expensive buying shocks predict that something north of 80 to all of the safety systems. four corners. and my customer doesn’t necessarily or struts. It’s 85 percent of all vehicles…aren’t op- “So if the shocks and struts aren’t “The thing they don’t understand is believe me, and there’s this cost-con- just that they erating within the vehicle’s designed maintaining road grip, or the brakes that none of the onboard electronics scious element? do so because performance range, and the motorist aren’t controlling the tire well, or if or computerized safety systems can “The beginning of that journey or they find out McGovern doesn’t realize it,” Mr. McGovern said. the vehicle’s not in alignment — all of work unless ride control is up to its transition is ride-control knowledge. that they failed, “Maintenance to them is uids, but those things have to work in concert task,” Mr. McGovern continued. “So We nd that most shops, and a little there’s clunking noises and things of it’s not. It’s an awful lot of hard parts with one another in order to keep the ABS brakes, traction control, ESC bit deeper into the technician them- that nature,” said Justin Hynes, ride that have a performance life expectan- onboard electronics safety systems (electronic stability control)? selves, don’t have a rm grasp on the control product manager for ZF Af- cy. They may still function, but they’re operating within their controlled envi- “All those semi- and fully automat- relationship of the systems within ride termarket, maker of TRW automotive not going to function within the vehi- ronment,” he said. ic driver-assist features all depend on control,” Mr. McGovern said. parts. cle’s design.” “What scares me personally is the the tires’ gripping the road. And the He said KYB’s training involves “Your shocks and struts play a role Too often, especially in newer ve- second or third owner of a vehicle. tires can’t grip the road unless steer- “retooling” the dealership “into not a in the safety and longevity and main- hicles, motorists rely on dashboard People are keeping their cars two ing, suspension, shocks and struts are brake shop or an undercar shop but a tenance of the car, because changing warning lights to know when to re- years longer, and average age is above all within the vehicle’s design.” true ride-control shop.” the shocks will help prevent tire wear. place or x a part on their vehicles. 11 years old. The problem is that motorists, and “I think it’s important when they It helps to reduce braking distance, “Unfortunately, there is no light that “What about all the people that can technicians, seem to be reluctant to ad- are talking to their customers that they and it helps with the comfort of the dress the issue of shock/strut replace- need to emphasize the safety, and not vehicle’s ride performance,” he said. ment due to a lack of understanding of just about the shocks and struts, but “And when all those things are their importance — or more likely the there are other components, like worn out — at say 75,000 miles on a high price tag. the ball joints vehicle — you’re going to see your tire and control tread life is pretty much worn out. So Selling ride control arms and their you’re going to spend $500 to $600 on bushings, that a new set of tires,” Mr. Hynes said. Selling to cost-conscious consum- are import- “If you don’t take into consideration ers has been a challenge since the ant, too,” Mr. the shocks and the struts, then more beginning of commerce. Tire dealers Hynes said. than likely that 60,000-mile warranty and auto repair shops can meet this An import- on those tires potentially could be re- challenge by learning how to sell val- ant factor is duced, and you’re coming in at 30,000 ue and provide information, the parts for the shop to miles with bald spots or spotting on makers said. determine if the tires.” “The vast majority of (repair shops) the customer Hynes “People have to be aware that with are incredibly underselling ride con- plans to keep worn-out shock absorbers, the brak- trol,” KYB’s Mr. McGovern said. “It’s his/her vehicle for a long time. ing distance increases tremendously,” something that just has evolved over a “Do they want it for the life of the added Dirk Fuchs, technical training few decades going all the way back to vehicle up to 11 years? Then you need manager for ZF Aftermarket. the rst vehicle that got MacPherson to think of the safety and well-being of Mr. Hynes said typically a vehicle struts and no longer had simple shocks. the car itself and those you’re carrying that is around 11 years old has had “At that moment in time, they be- in it,” Mr. Hynes said. only one suspension component re- came much more dif cult to do, much “We’ve developed communication placement because the average con- more expensive. And anything that is devices, forms that speak to the tech- sumer doesn’t pay attention or notice expensive on a vehicle can be a dif - nician to show them what they should when the shock absorbers are worn. Fuchs cult sell. See Repair, page 10 10 • February 26, 2018, TIRE BUSINESS Visit us on the web at www.tirebusiness.com

Repair shops should take holistic approach to shocks, struts Continued from page 9 ing webinars, explaining how parts assumption that something half-price be doing on a road test, how to trans- work, including driver assistance is as good as full price. late what they experienced and even functions, and how to replace shock “It doesn’t take a rocket scientist a numbering system so that they can absorbers. to gure out that something half the rate conditions,” Mr. McGovern said. For the past two years, Tenneco price isn’t going to live up to OEM “So when they do talk to the cus- said it has encouraged several hun- standards. But because the shop tomer, it’s not just a personal recom- dred tire dealers and other service doesn’t know any better, they tend to mendation. It’s more of an orchestrat- providers to implement its four-step approach the subject with some en- ed numeric approach to wear vs. the inspection and sales process, and “an thusiasm that what they’re offering is bene t of replacing the units. impressive number of these business- just ne, and they don’t offer options “The evidence almost has to be es have seen signi cant, sustained (to the customer) because the other there for the cost-conscious consum- increases in ride control service op- options are more expensive,” he said. er. Most consumers are reasonably portunities,” Mr. Bregger said. “So that level of parts training is intelligent and when you give them another hole in the chain, to at least facts and an audit trail for the steps Trends understand all the differences, so that the shop took to come to a conclu- they can sell appropriately and give sion, the ratio of closing sales goes up In an effort to make ride-control the consumer a choice.” dramatically.” replacement easier for technicians, Overall, the current offerings of “It’s a matter of giving the motor- AftermarketZF photo several companies have been selling electronic and mechanical shocks and ist the correct economy of scale: ‘If ZF Aftermarket encourages shops to explain to customers the importance loaded assemblies with the spring, struts are expected to remain relatively your goal is to keep (the car) within of replacing worn out shocks/struts. mount and all the parts needed for unchanged for the next several years. its designed performance, here’s one training 24/7 for free, or go through what it really takes to keep their ve- installation. “The foreseeable future still has choice. If not, you can defer the ex- a KYB supplier for one-on-one train- hicle within designed performance.” “The major shift we’re seeing isn’t almost the same kind of shock con- pense but be aware that you’re driving at a dealership or large group Mr. McGovern said the function for overall (shocks) sales to change struct that we’ve been seeing the last ing a vehicle that’s not within the de- training with a chain of stores. of ride control is “obvious stuff that so much as the product mix.… The 30 years,” KYB’s Mr. McGovern signed performance.’ “Many years ago we departed people don’t pay a lot of attention to.” loaded strut assembly is becoming predicted. “So the responsibility of the de- from the position of selling just to “That’s why, when we approach far more popular, and the bare unit “Although they’ve gone through cision and the consequence for not distribution and created more of a service provider training, we have that requires some more expertise a process of improvements in seal- doing on-going maintenance to keep pull-through market so our salespeo- to start out telling them, ‘Look, you and time at the service provider level ing technology and performance at- it within designed capabilities lies on ple’s daily routine is to call on shops,” has become less and less popular,” tributes, they remain today and for the shoulder of the motorist, not on KYB’s Mr. McGovern said, noting a Mr. McGovern said. the foreseeable future a mechanical the shop,” Mr. McGovern said. “So common question among dealer- “But there will become a point hydraulic device. And that’s mostly we never train the shop to push any- ships is how to sell the expensive where it won’t grow anymore because because of the margin pressures to thing or make a personal recommen- ride-control service. there are far more springs on a new keep costs down,” he said, noting that dation beyond ‘Here’s the facts.’” He said part of the shop vehicle than there are different high-end electronic versions most Mr. Bregger said Tenneco encour- owner/technician training struts. So as manufacturers try likely will stay in high-end vehicles. ages service shops to follow a four- involves developing a be- to offer more and more part ZF said OEMs are requesting more step process for every customer and lief in the sale, teaching numbers, it will never cover and more electronic shock absorbers vehicle that visits their shops: them about shocks and all vehicles. So it will level where the driver-assist system can yyAsk the consumer if he or she struts and how they out that product mix. But it adjust the shocks immediately from has noticed any symptoms that could work, how they wear, will probably be a number a hard setting for sharp steering to a be related to worn shocks and struts when is a good time to of years before that actually soft setting for low-speed comfort. — strange noises, severe brake dive, replace and why. occurs.” However, all the driver-assist fea- lack of steering precision, reduced “It seems like we He noted that loaded as- tures, including accident-avoidance stability around corners, excessive have to teach them the semblies are still a low per- features and emergency braking, can’t brake wear and/or abnormal tire difference between re- c centage of the overall strut/ function effectively without fully i h p wear; placing failed parts and a shocks market. functioning shocks, Mr. Fuchs said. r g . p yyTake the vehicle on a road replacing parts as a main- r “Just about all name brands “Our car knows exactly what would o C s test. A trained tech can quickly spot tenance category to keep that a — KYB, Monroe, ourselves, be the braking distance at this speed c ri e steering, stopping and stability con- vehicle within its designed per- m Gabriel — all have strut and spring to make a full stop. And now we come A YB cerns that could point to ride-control formance,” he said. K assemblies…,” ZF’s Mr. Hynes said. to the point that our shock absorbers issues; “Once they have a grasp on that “That’s more than likely where the are worn out,” he continued. y Perform a visual inspection subject, we move on to the aware- industry is headed for faster installa- “We make the shock absorber hard, of the vehicle’s shocks and struts. ness piece because most shops don’t This KYB graphic illustrates that tion for a technician to do than to do a but it can’t get so hard as we’re expect- Like the road test, this is a fast, easy have a very good vehicle inspection vehicle safety systems, on the shock and strut by themselves.” ing when we have internal wear. Then add-on to any other common vehicle process and consumer reporting pro- outer rings, are dependent on fully However, Mr. McGovern lamented we have a longer brake distance and service, whether an oil change, brake cess.” functioning mechanical ride con- that repair shops tend to select parts that could be a problem when our con- job, tire replacement or alignment, he Mr. McGovern said there is a par- trol systems, on the interior ring. that are half the price of a premi- trol unit estimates 50 feet (in braking said; then adigm shift occurring in training um-level components, making the distance) when it’s 55 (feet).” yyShare the ndings with the con- — rather than focusing on fragment may think you know what you’re sumer and, if warranted, recommend services, such as brakes, training is doing, but let’s go back to blocking that they replace worn ride-control “evolving toward another paradigm and tackling and go through the fun- units. where you’re looking at the vehicle ho- damentals because it’s unlikely that “Some service providers are reluc- listically and trying to make sure that you’ve really thought this through tant to recommend add-on services, everything in that connected vehicle and put all those elements together,’” but they aren’t doing their customers works the way it’s supposed to work.” he said. any favors by keeping them in the “Most shops don’t think in those “It’s really that component of dark about potential problems,” Mr. terms. So when they come to a ser- awareness, that component of belief Bregger said. vice counter, they talk about the price in the sale, that component of ride “Remember, the vehicle owner re- on brakes, they talk about the price control knowledge. It really comes lies on your expertise. If the need for on tires perhaps, but because they back to that,” Mr. McGovern said. new ride-control units exists, make don’t usually grasp the concept of the “Once their experience and knowl- sure the customer is informed and connected vehicle, they don’t start out edge range is where it needs to be, offer to complete the repair for them. with, ‘Hey, everything on your vehi- (repair shops) usually become advo- “Also, ensure that you commu- cle works with all those parts work- cates, and the number of sales goes nicate any product warranties and ing with one another. Let me give you up, but not because they’re selling guarantee offerings for the product to a picture of where you stand within more — it’s just that they’re identify- help the consumer feel con dent that those systems.’ So a system-selling ing and communicating the condition their vehicle is being repaired with a technique is usually foreign to most much more clearly,” he said. quality part.” chains…,” Mr. McGovern said. “The differentiator is going to be He said he has found shops’ vehicle technician knowledge and shop pos- Training inspections forms vary widely, often ture. If the posture of the shop isn’t take a random approach to evaluating to be proactive, then their technicians KYB Americas Corp. photo KYB offers training online where vehicle condition “and the motorist never will be.” KYB Americas Corp.'s William McGovern expects shocks/struts design to technicians can register and take doesn’t have a prayer understanding ZF offers online training, includ- remain relatively unchanged for the foreseeable future. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, February 26, 2018 • 11

Tenneco offers resources to help dealers grow business MONROE, Mich. — Tenneco Inc. has Strut part numbers have been the rst launched a series of installation vid- available for their respective vehicle eos, instruction sheets and other re- applications, Tenneco said. sources designed to help aftermarket The products are assembled in the distributors and service providers company’s plant in Paragould, Ark. grow their businesses with Monroe Tenneco said it expects to launch suspension conversion kits. hundreds of additional Monroe The kits enable technicians to re- Quick-Strut assemblies during each place expensive air-ride or electronic of the next two years, according to Mr. Perrin, noting that the new part numbers will address vehicles that addresses each stage of a vehicle’s af- will soon enter their prime age for termarket lifecycle,” Mr. Perrin said. ride-control service. “It is vital for these businesses to “Our product strategy offers chan- establish and maintain strong custom- suspension systems with convention- nel partners and their customers the er relationships by offering leading, al mechanical systems without acti- greatest potential for sustained busi- trusted brands and premium-quality, vating the vehicle’s electronic warn- ness growth through coverage that guaranteed products.” Tenneco installation videos are available on the ‘TennecoInc’ channel on YouTube. ing signals, the company said. The new technical resources will be available on www.monroe.com, the Monroe Shocks mobile app and on the “TennecoInc” channel on YouTube. “Demand for Monroe conversion kits continues to grow as service providers and consumers discover how expensive it can be to repair a factory air or electronic suspension,” said John Perrin, executive director, product management, North Ameri- ca Aftermarket, Tenneco. WEBINARS “Our new installation videos and other value-added content are designed to help accelerate this market growth by guiding users through WHY YOUR SHOP SHOULD BE each step of the job.” Replacing an air-ride suspension with OE-style replacement compo- TEXTING IN 2018 nents can cost thousands of dollars, Wed., Mar. 14, 2018 2:00 PM - 3:00 PM EDT he said, while the out-the-door cost REGISTER: tirebusiness.com/PodiumWebinar of an installed Monroe conversion kit can be signi cantly less. Each Monroe kit is engineered to The way that consumers communicate is di erent. No longer will phone restore factory ride height and pro- and email be a sucient way to maintain contact and interact with your vide stable, comfortable ride and customers. Today’s customer is much more comfortable communicating handling performance, he said. via text or other messaging apps. Tire and auto service professionals who Tenneco offers vehicle-specif- aren’t catering to these di ering communication preferences could be left ic kits for the following conversion behind. projects: air spring to coil spring; air shock to Monroe OESpectrum Load In this webinar, we will discuss how using messaging to augment your Assist shock; self-leveling to stan- service will signicantly boost your customer service, while vastly dard suspension; and electronic sus- increasing revenue. We’ll also give you tips and tricks for implementing pension to passive suspension. a messaging strategy that works best for your business. These kits cover millions of vehicle KEY OBJECTIVES applications, including Buick, Cadil- • Gain an understanding of today’s communication landscape lac, Chrysler, Dodge, Ford, GMC, Isu- • How messaging can improve customer service while increasing revenue zu, Oldsmobile, Lexus, Lincoln and • Tips & tricks for implementing an e ective messaging strategy Mercury models equipped with factory air-ride or electronic suspensions. New Monroe conversion kit part SPEAKERS numbers are being introduced regu- Tyler Brunatti - Director of Automotive Service Sales larly, Tenneco said. Tyler Brunatti is the Director of Automotive Service Sales “The conversion market is a prime at Podium, a SaaS platform that helps businesses opportunity for repair providers to inuence purchase decisions by streamlining the demonstrate their unique expertise collection and management of online reviews. Tyler has and deliver extensive value to con- a wealth of experience in digital marketing from his years sumers,” Mr. Perrin said. working at Domo as a senior sales director and delity “This category is an area of focus investments. He enjoys spending his free time with his for Tenneco and Monroe as well. We family doing various outdoor activities. intend to provide our channel partners and front-line service businesses Matt Boyce - Director of Marketing with the resources they need to cap- Matt Boyce heads up the demand generation ture more of this business.” department at Podium, a SaaS platform that helps Tenneco said late last year it was businesses inuence purchase decisions by streamlining on schedule to surpass 700 Monroe the collection and management of online reviews. REGISTER: Quick-Strut part numbers by year- Matt received his BA in Communications from Brigham tirebusiness.com/PodiumWebinar end 2017, completing a 71-percent Young University and has a wealth of knowledge in single-year increase in the company’s digital marketing from his time working at Adobe and Lilly. premium replacement strut-assembly product line. With nearly 300 Quick-Strut part Sponsored by: numbers introduced in 2017, Ten- neco said it will have extended the coverage of its Monroe-brand strut replacement products by more than 27 million registered vehicles. More than 140 of the new Quick- tirebusiness.com LOOK FOR ARCHIVED AND UPCOMING WEBINARS ON TIREBUSINESS.COM 12 • February 26, 2018, TIRE BUSINESS Visit us on the web at www.tirebusiness.com

Federal-Mogul moves Abex Tenneco offers suspension brake production to Ky. plant kit for Ford F-150 trucks SOUTHFIELD, Mich. — Federal-Mogul creased demand for our products, facility, which has the highest level LONG BEACH, Calif. — Tenneco Inc. disassembly of the factory struts. L.L.C. expanded its Abex series of namely Abex ADBHD1369,” said of quality certi cation available to has redesigned its Rancho 4.5-inch Two Rancho strut towers (Part air disc brake products for popular Bill Nunnery, vice president, com- friction manufacturers, these brakes performance suspension system for no. RS886519) or a set of two commercial vehicle braking appli- mercial vehicles and business devel- also feature an OE-quality formula- 2015-18 Ford F-150 pickup trucks. RS5000X struts — sold separate- cations. opment, Federal-Mogul Motorparts. tion for enhanced stopping power The system (Part no. RS66505B), ly — are required for complete in- Abex ADBHD1369 is being pro- “In addition to being manufac- with extended disc pad and rotor available in the U.S. and Canada, stallation. In addition, a set of two duced at Federal-Mogul's ISO/TS tured in the U.S. at our Glasgow life.” offers 4.5 inches of raised height Rancho RS5000X, RS7000MT or 16949:2009-certi ed manufactur- in the front and 3 inches in the rear RS9000XL rear shock absorbers ing facility in Glasgow, Ky. of vehicles that drive both on- and is recommended, Tenneco said. Abex ADBHD1369 is equipped off-road. No drivetrain modi cations are with OE-style green coat stripes, The new kit is designed with required for the system, which which provide consistent perfor- maximum structural integrity and is designed to accommodate the mance throughout the life of the OE-level quality, the company said, tment of 35-inch rim-diameter pad. The green coat is a proprietary, featuring a fully boxed welded sub- tires. The kit also includes CV engineered material that is applied frame manufactured from high- spacers, brake line brackets, sway to the friction surface to aid the ini- strength, low-alloy steel and DOM bar relocation brackets and other tial effectiveness of the brake fric- tubing, along with CNC-machined necessary hardware. For the rear, tion material, the company said. ductile iron steering knuckles. a tapered block, U-bolts and other The pads also feature a mechan- Differential drop brackets in- necessary hardware are provided. ical retention system that supports cluded in the kit are designed to The Rancho suspension kit, along the friction material from shearing align pinion and CV joint angles with RS5000X, RS7000MT and from the back plate. properly to reduce binding or vi- RS9000XL dampers, carry Ran- Abex ADBHD1369 comes with a bration. System components are cho’s Limited Lifetime Warranty. complete installation hardware kit CAD-designed for proper drive- Rancho RS5000X, RS7000MT and and meets global ISO performance shaft angle, steering geometry and RS9000XL shocks and struts also and wear standards, the company track width, Tenneco said. are covered by a 90-day risk-free said. It also conforms to 2025 cop- The system maintains the factory ride offer, which allows consumers per-free requirements of less than rack-and-pinion location and uses to try certain shock models on any 0.05 percent by weight, with no cop- OE tie-rod ends, according to Ten- truck or SUV for 90 days. Consum- per added to the formulation. neco. For the front of the vehicle, a ers can return their shocks within The pads come in re-engineered pair of bolt-on 4.5-inch strut spacers 90 days for a full refund of the prod- packaging with new graphics and are designed to be installed without uct’s purchase price. design. The new packaging was constructed to offer better protection to the product, which could reduce damage often incurred during shipping, the company said.

“As more eets begin to purchase Federal Mogul L.L.C. photo air disc brakes, we have seen an in- Abex disc brake parts. Tenneco loyalty program turns 20 MONROE, Mich. — Tenneco Inc. will business in these categories, accord- celebrate the 20th anniversary of its ing to the company. Expert Plus dealer loyalty program Tenneco will award bonus points with additional rewards, the compa- to long-term Expert Plus members ny said. who renew in 2018, the company

The 2018 program will offer said. Members with ve or more TBC Corp. photo members a pro t-producing 10-coupon “preferred cus- consecutive years of participation will be eligible for tomer” rebate book that includes offer extensions from varying levels of bonus points, it said. Tenneco’s Monroe Shocks & Struts and Walker Emis- Other enhancements to Expert Plus include: TBC debuts young, cooler sions Control partners, Tenneco said. • A redesigned Expert Plus website; It will also offer: • A new e-store that makes it easier for members to • A year-long calendar of consumer and trade promo- acquire promotional merchandise, tools and branded ap- King Midas in new TV ads tions designed to increase business; parel, along with allowing for payment via credit card or PALM BEACH GARDENS, Fla. — TBC mentary courtesy checks on each • Access to a comprehensive e-learning program; and Expert Plus points; Corp.’s Midas International franchise vehicle. • A complete point-of-sale kit. • Access to an expanded catalog of ride control, emis- unit has resurrected King Midas as In the commercial that’s been air- The kit includes an illuminated Monroe wall sign, sions control and brakes technical e-learning courses; and the brand’s spokesperson — albeit a ing the past few months, “King Mi- educational computer decals; oor graphics; and addi- • Enrollment in Monroe and Walker Dealer Locator younger, cooler version of the legend das” strolls through a Midas shop and tional point-of-sale materials, Tenneco said. search tools. with a “lighthearted, yet earnest way” turns various auto parts — brakes, The Expert Plus program provides a complete set of The annual enrollment fee for Expert Plus is $120, of delivering automotive advice. shocks, struts, etc. — to gold with a educational, promotional and awareness tools that are Tenneco said. Tenneco sales representatives can enroll “The Midas Mission is to ‘exceed touch of his nger while touting Mi- aimed at helping automotive service providers boost customers into the program, the company said. expectations and make our customers’ das’ lifetime guarantees. lives easier,’” said Midas Marketing “Midas has a track record of inno- Vice President Brian LePorin, “and vations that distinguish and elevate the King both embraces and embodies the service we offer, and who better to Oklahoma City dealer wins KYB sweepstakes this commitment and calls on all of us convey this than the King — he is the OKLAHOMA CITY — Dan Miller of Fleet $50,000, KYB said. an automotive parts supplier with at Midas to live up to it.” ultimate Midas spokesperson,” Mr. Auto Repair of Oklahoma City has Rachelle Howard, Mr. Miller’s outlets in Texas, Oklahoma and The new series of TV commer- LePorin said. won a KYB Max Performance diesel tenured service writer, submitted Louisiana. Executive and local XL cials — whose message is echoed in “After all, only Midas can own pickup truck as the grand prize win- the winning entry. The sweepstakes, parts representatives were on hand the company’s redesigned web, print, King Midas. He is deeply in our ner of KYB Americas Corp.’s 2017 which was held for the third straight at the event. social and in-store advertising — put DNA. This is an idea we created 61 Win With KYB sweepstakes. year, ran from September through Mike Fiorito, KYB vice presi- forth the brand’s new tag line, “Al- years ago when we painted our muf- Mr. Miller received the truck at a November. Service providers need- dent, said the truck “was intended to ways a Touch Better.” ers gold and put crowns on kids in KYB press event held at his facili- ed to register their shop to enter, as draw attention to our comprehensive The new commercials highlight our waiting rooms. It’s a part of our ty in late December. The truck, a no purchase was necessary to win. product coverage for the growing extras available at the 1,300 Midas unique identity.” 2015 Ford F250 Super Duty 3/4-ton Fleet Auto Repair’s winning en- truck market among our great dis- locations such as limited lifetime The spots were created by the Mar- pickup equipped with KYB Mono- try was registered through longtime tribution partners like XL Parts and guarantees on select parts, views tin Agency, which has been working Max shocks, is valued at more than KYB distribution partner XL Parts, their top customers.” into the service bays and compli- with Midas since 2013. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, February 26, 2018 • 13

Elimination of NVH is critical to comfortable, safe ride By Ron Sherman Drivers expect brakes to operate quietly and part of the brake system are more capable of Commentary can be distracted or frustrated by noisy, vibra- managing NVH, performing a complete brake rake technology is one of the greatest tion-prone brakes. job is key to controlling noise and vibration. contributors to the presence of noise, with small peaks and valleys apparent at am- Two components aid in the control of NVH Bvibration and harshness (NVH) in ve- bient temperatures. for braking: the friction material and the shims, Taking care of rotors hicles; however, top-quality brake technology When brakes are still cold — for instance, small rubber or adhesive components that t successfully can control NVH to give a safer, when a driver has just started the car, before between other brake components (notably, the Even if you are replacing worn brake pads more comfortable ride. the brakes have generated enough friction to pads and rotors) to reduce noise and vibration. with pads that have been engineered for qui- Friction formulations and shim technology warm up — the uneven surface of the rotors Friction materials work in conjunction with et performance, if your rotors or shims are are particularly critical to automotive NVH con- comes into contact with the at brake pads, rotor design to minimize vibration and noise worn down, noise and vibration can occur. trol, as is getting a complete brake job, including which can cause the front end, steering and/ by damping vibration and noise harmonics. This means that when changing brake pads, rotor replacement or resurfacing, each time pads or brake pedal to vibrate and sometimes gen- Shims also aid in noise and vibration damp- rotors should either be replaced as well; or, if or other brake components are replaced. erate noise. ing, and their design and formulation can be the rotors are still within speci cations, they This accounts for brake noise that is notice- as advanced as that of the friction materials. should be cleaned and resurfaced thoroughly. NVH in brake technology able primarily when rst starting a car. A vi- Friction formulations are proprietary and The caliper and caliper hardware, pis- sual inspection of rotors worn in this way that unique to each brake manufacturer, and so it ton, seals, and other components should be The term NVH came into popular use in the are causing vibration will often show scoring. is important to purchase brake products from checked to ensure that they are all working automotive brake industry about 20 years ago. Once rotor design was changed to be thin- industry-leading manufacturers if NVH con- properly and are adequately lubricated. At that time, friction formula- ner, friction formulations need- trol is a priority. Opting for a complete brake job when it is tions and other aspects of brake ed to be changed as well, as the Take, for example, brakes made by MAT time to service your brakes is the best way to design were changing in response highly abrasive formulations of Holdings Inc.’s Bendix-brand brakes. ensure that all components will work together to issues of rotor pulsation and the past would cause even more GRI Engineering & Development L.L.C. for noise-free braking. signi cant premature rotor wear. vibration with thinner rotors that (GRIE) manufactures all of the components Attempting to cut costs by not replacing or Older friction materials caused wear out more quickly. for the Bendix brakes brand of automotive resurfacing rotors almost certainly will lead to rotors to wear out prematurely, brakes, including shims. noisy, uncomfortable braking. which in turn caused vibration NVH control GRIE focuses primarily on designing and Automotive brake technology has come a that could be felt by drivers. manufacturing shims that use industry-lead- long way over the past two decades in the con- Around this time, OE brake New friction materials were de- ing shim materials to eliminate the noise and trol of NVH. manufacturers also decided to veloped that are softer and work vibration frequencies generated by braking. Industry-leading manufacturers create top- make rotors thinner to save on in conjunction with rotor design Ultimately, every part of the braking system of-the-line friction formulations and shim material costs. to minimize vibration and noise. works together to eliminate NVH effects: cal- technology that work together to damp the Rotors feature ns between NVH control is at the fore- ipers, caliper hardware, backing plates, rotors, frequencies of sound and vibration caused by the inner and outer plate layers. front of modern automotive brake shims and friction formulations. braking. The plates on the outside of the Sherman design, as brake manufacturers Automotive brake manufacturers such as Relying on top-quality manufacturers, as ns get worn down little by little strive to provide customers with GRIE — which has a long history of working well as ensuring your comprehensive brake while braking, and the ns expand and con- the quiet, comfortable ride performance they with all of these components together rather service includes a complete brake job, will tact based on the heat generated by braking expect. than manufacturing just a single component of help to virtually eliminate noise, vibration and friction. Though heavy vibration can affect brake the system — are more able to ensure that all harshness from your braking experience. As a result, the plates wear evenly at the safety, as it can affect steering stability par- of the parts of the brake system work togeth- high temperatures caused by braking, but ticularly while turning, noise elimination is of er to eliminate noise and vibration from the Ron Sherman is an engineering manager, once the brakes cool back down and the ns greatest concern for automotive brake manu- braking. friction products, at GRI Engineering & De- contract, the rotor surface becomes uneven, facturers. Just as manufacturers that work with every velopment L.L.C. Monro settles lawsuit, agrees to pay $1.95M ROCHESTER, N.Y. — Monro Inc. to court records. The case was heard agreed recently to settle an eight- in the U.S. District Court, Western year-old class-action suit related to District of New York. unpaid wages and overtime for for- Among speci c charges levied mer technicians and assistant store by the plaintiffs were that Monro managers, agreeing to pay $1.95 management told employees not million to the plaintiffs. to clock-in, clocked out employees Monro said in its third-quarter while the employees continued to 10-Q ling with the Securities and work, altered time records and did Exchange Commission that it estimat- not pay employees who worked ed the amount to settle to be less than during meal and/or rest periods. the legal fees and expenses it believed The settlement arose out of me- it likely would incur in connection diation the parties agreed to after with defending such matters during a series of motions and appeals the next 12 months. throughout 2017 regarding the fed- Monro said the settlement result- eral court’s granting on March 31 to ed in a reduction in third-quarter net decertify the class-action. income of 4 cents per share. In comments to nancial ana- The class-action suit — Ellersick, lysts in a recent conference call, et.al. v. Monro Mufer Brake Inc. CFO Brian D’Ambrosia said the and Monro Service Corp. — was company opted to settle the case led originally in September 2010 because, “Any litigation takes a by John Ellersick, David Ellersick, certain amount of management’s Travis Myles, Lewis C. Youngs Jr. time,…and we believe that settling and Richard Curry Jr., who described this matter will allow management themselves as “technicians” and/or to focus on running the company’s “mechanics” employed by Monro for operations and executing the initia- varying lengths of time. tives previously laid out.” The plaintiffs claimed they were de- Legal counsel representing the nied “regular, overtime and meal and plaintiffs in the case declined to rest period compensation” as required comment, saying there were still by the Fair Labor Standards Act law- technicalities to sort out. suit at any time within three years prior Monro said technically, the matter to the ling date of the action. is still pending until the court issues The suit over time attracted more its nal approval of the arbitrated set- than 1,100 co-plaintiffs, according tlement. 14 • February 26, 2018, TIRE BUSINESS Visit us on the web at www.tirebusiness.com

Brembo adds carbon ber-processing capacity at factory CURNO, Italy — Brake systems producer ber discs and pads to be produced at the Brembo S.p.A. is adding capacity at its new unit will differ from the carbon-ceram- factory in Curno for processing carbon - ic discs the company makes for high-per- ber materials to be used in brake pads and formance road cars, produced at Brembo discs for competition applications. plants in Stezzano, Italy, and Meitingen, The 23,000-sq.-ft. building on the Germany. grounds of the Curno factory brings to- Carbon ber materials produced at the gether in one fa- new facility will cility the design, be used in compo- development and nents for car and production of the motorcycle racing, company’s com- including Formu- petition carbon la 1 and MotoGP, brake pads and discs. Brembo said. Construction is scheduled to be complet- Brembo is the owner of the Brembo, ed by year-end, with production expected Breco, AP, Bybre and Marchesini brands to be fully operational by year-end 2019, and operates through the AP Racing brand Brembo said, without disclosing its invest- as well. Its business in North America is ment in the project. handled by Brembo North America Inc. in Brembo said the semi-nished carbon-- Plymouth, Mich. Artist’s rendering of the new 23,000 sq.-ft. building. Brembo S.P.A. photo Conti brings back ATE brake BPI to boost brake parts to North American market capacity at China plant ALLENTOWN, Pa. — Continental A.G.’s Commer- MCHENRY, Ill. — Brake Parts Inc. to increase its production capacity by cial Vehicles & Aftermarket unit, a supplier of (BPI), maker of Raybestos brakes, 1 million sets of brake pads annually. aftermarket parts, is once again offering the ATE has invested in new manufacturing The company also plans to add more brake parts line in the North American market. and testing equipment at its BPI- positive molding equipment in the The ATE aftermarket brand encompasses Laixi plant in Laixi, China, in order rst quarter of 2018 to increase ca- brake pads and rotors, boosters, master cylin- to expand brake testing capabilities pacity by another 2 million sets per ders, wheel speed sensors, brake wear indicators, and increase production capacity. year. calipers, brake uid, hoses, reservoirs, as well as BPI-Laixi is one of four BPI- “At BPI, we are continually eval- wheel cylinders, particularly for European vehi- owned friction plants globally. The uating and upgrading our manufac- cles. plant manufactures nearly 6 million turing facilities in order to fulll the Since Continental is a global OE supplier of sets of brake pads annually and has growing demand for quality brake brake systems and components, the ATE line of- added a LINK 3000 dynamometer components, including friction, ro- fers many genuine OE parts, the company said. to conduct enhanced performance, tors and calipers,” said H.T. Chang, “The ATE brand has always been a rst choice noise and dura- BPI’s vice pres- of many of Europe’s premier auto makers,” said bility testing on ident of product Dan Caciolo, head of product management for friction material, development, en- Continental Independent Aftermarket Power- the company said. gineering, R&D train & Brake Systems. In order to meet and quality. “By bringing more ATE products and lines to growing customer “By making North America we hope to create excellent op- demand, BPI said the commitment portunities for our customers, both those that are it has added the latest generation of to continuously invest in our facili- in the import specialist segment as well as those positive molding equipment to the ties, we are able to seamlessly inte- that offer full-line portfolios,” IATF (ISO) 16949:2016-certied grate the development, testing, val- Continental distributes Continental, VDO, plant. idation and manufacturing of new ATE, Galfer and Barum brands for commercial BPI did not disclose the nancial numbers and innovative products and special vehicles. scale of the investment. into our comprehensive brake parts This addition will allow BPI-Laixi offering.” Hunter automates brake lathe functions KYB adds product ST. LOUIS — Hunter Engineering Co.’s lat- screen interface that allows technicians to offerings for truck, est-generation on-car brake lathe, the Au- look up required adaptors, change cutting toComp Elite, features a pair of patented direction and speed and view instructional technologies — automatic compensation and videos, Hunter said. SUV, CUV markets anti-chatter — that are designed to maxi- The lathe’s 1.5 horse power motor eliminates GREENWOOD, Ind. — KYB Americas Corp. has ex- mize speed and accuracy without operator the need to drop driveshafts, and combined panded its coverage of the truck, SUV and CUV intervention. with its variable speed capability helps avoid market with additional product offerings in the The AutoComp Elite, which debuted locking differential speed on trucks and per- twin-tube Excel-G and Strut-Plus lineups, as well in late 2016, has been approved by more formance vehicles. In addition, reverse rotation as expansion of its Gas-a-Justa and MonoMax than a dozen original equipment brands — allows work on pickups and light commercial monotube lines. Acura, BMW/Mini, Fiat Chrysler Automo- vehicles with high driveline drag. The additions include monotube shock-and- bile, Ford, GM, Honda, Hyundai, Inniti, Handling larger commercial vehicles re- strut applications for half- and three-quarter-ton Kia, Lexus, Nissan, Subaru, Toyota and quires the purchase of truck adapter kits domestic and import light trucks and SUV appli- Volkswagen — for use by their franchised for Ford-, GM- and/or Ram-brand vehicles, cations. dealers, Hunter said. Hunter said. KYB Product Manager Tim Oldiges said the The lathe’s anti-chatter feature varies spin- In its promotional literature, Hunter quotes coverage for the truck and SUV markets are vital dle speed to keep chatter-inducing vibration Justin Sailliez, service manager for Weeks to the company’s growth. — which can accompany machining rotors Chevrolet Buick GMC in West Frankfort, “When we announce a coverage expansion, at a xed speed — from starting, resulting Ill, as saying, “With variable-speed drive, particularly in our Gas-a-Just or MonoMax line- in a smoother surface nish. By the time the we can avoid differential lock-ups by lower- ups, it is our customers who have spoken up about technician hears the chatter, it already is too Hunter Engineering Co. photo ing the cutting speed. This allows us to han- the benets of having an upgraded KYB unit to late to compensate for it, Hunter claims. A technician operates Hunter’s latest-gener- dle any car that comes in, even large medi- help the vehicle,” Mr. Oldiges said. The automatic-compensation technology ation on-car brake lathe. um-duty trucks and difcult vehicles.” “We feel strongly this recent expansion will pro- determines the position of the internal plates without operator intervention, Hunter said. Cycle times are less than nine minutes per vide increased sales for our distribution partners.” directly to maximize speed and accuracy The lathe also features a 7-inch touch- rotor Visit us on the web at www.tirebusiness.com TIRE BUSINESS, February 26, 2018 • 15 Prometeon revamps global COO in line to succeed structure, executive team Senard at Michelin helm CLERMONT-FERRAND, France — Group Michelin’s board of directors is MILAN, Italy — Prometeon Tyre Group, the global busi- quality of cer since 2016 and has more than 20 years’ recommending Florent Menegaux, senior executive vice president ness comprising Pirelli & C.’s former commercial tire experience with Pirelli Tyre in R&D, manufacturing and chief operating of cer, to succeed Jean-Dominique Senard as business assets, has made several key executive appoint- and quality in Brazil and China; CEO when Mr. Senard’s term expires in 2019. ments, including the promotion of Chief Operating Of - yyAlp Gunvaran, CEO of the Middle East/Africa, Mr. Senard recently noti ed his employer cer Murilo Fonseca to CEO of the company’s Americas Turkey, Russia and Confederation of Independent States of the past 13 years that he does not intend to region. business area. A veteran executive of P&G, Mr. Gun- Mr. Fonseca was Prometeon’s varan joined Prometeon in September 2016 as CEO of stand for re-election at the 2019 sharehold- COO and chief commercial of- Turkey, East Europe, Russia & CIS; and ers’ meeting. He’s been CEO since 2012. cer for Latin America during y Marco Solari, CEO of Europe region. Mr. Solari Mr. Senard joined Michelin in 2005 as Prometeon’s start-up phase. He was global sales director and managing director of Italy, CFO and a member of the group executive spent 20-plus years with Good- France, Spain, Nordics and Benelux since Prometeon council. He was appointed managing part- year in various areas and posi- formed in 2016; prior to that he was commercial direc- ner in 2007 and co-managing general part- tions, ending up as sales oper- tor of Pirelli’s truck business in Europe, MEA and Asia/ ner in 2011 alongside Michel Rollier, whom ations general manager, Latin Paci c (APAC) and chief commercial of cer APAC for he succeeded as CEO in May 2012. America, before leaving Good- all Pirelli businesses. Mr. Menegaux joined Michelin in 1997 year in 2012 to join SKF A.B. In addition, Yves Pouliquen continues as CEO of the as commercial director for truck tires in in Latin America. He joined APAC and India region, a position he’s held with Pro- Menegaux the United Kingdom and Ireland, and held Pirelli Tyre in 2015. meteon since late 2016. Prior to joining Prometeon, Mr. additional sales positions in the truck tire Fonseca The executive appointments Pouliquen spent 18 years with Group Michelin in vari- sector for the next nine years, including sales director for truck are designed to strengthen Pro- ous positions within that company’s Asia-Paci c busi- tires in North America and head of truck tires for South America. meteon’s presence in the various markets where it op- ness areas. In 2006 he was made responsible for the rm’s consumer tires erates and are in line with the strategic interest of its The region managers also report functionally, for the business in Europe and then executive vice president the of same shareholders to continue the integration process with respective areas of competence, to Messrs. Akyildiz and activities worldwide two years later. ChemChina’s Aeolus group, the Milan-based company Bregantim He was appointed chief operating of cer in December 2014 and said. Prometeon, the manufacturer and distributor of Pire- senior executive vice president last year. He was named to super- The other executive appointments, all of whom report to lli-branded truck, bus, agricultural and OTR tires, oper- vise the group’s business directions, and manufacturing, supply Prometeon Chairman and CEO Giorgio Luca Bruno, are: ates four factories (two in Brazil and one each in Egypt chain and customer experience operational directions in January. yyMurat Akyildiz, chief commercial of cer, over- and Turkey) and employs 7,000. seeing all structures related to sales reporting (market- It is 52-percent owned by TP Industrial Holding He also oversees Michelin’s motorsports activities and materials ing, OE, agro business and supply chain). Mr. Akyildiz, (which in turn is owned by Marco Polo International business. who joined Prometeon two years ago, was CEO of Great Italy), 38 percent by CINDA (a Chinese International The board also will recommend that shareholders elect Yves Europe (Turkey and Europe). He previously held various Investment company) and 10 percent by Aeolus. Chapot, currently executive vice president, automotive business positions with P&G Group for over 20 years; Prometeon is represented in North America by TP lines, since January, to be managing partner. Mr. Chapot super- yyAlexandre Bregantim, chief technical of cer, Commercial Solutions L.L.C., which is headed up by vises the automotive B2C global and regional brands, automotive overseeing operational functions related to research and Alex Vitale, a former general manager of agricultural/ OE business lines and three regions — Africa, India, Middle East; development, production and product quality report. He OTR tires for Pirelli Tyre. The company operates out East Asia and Australia; and China. has been Prometeon’s chief research/development and of San Diego.

ON THE MOVE

Hankook promotes Mr. Patel moves to Tire Consumer She was the recipient of the Auto including Red Ventures L.L.C., Co- have him oversee- from RepairPal Care 2017 Woman of Excellence ca-Cola Co. and McKinsey & Co. ing the TireMaster Sicking to sr. director Inc., where he was Award by the Women in Auto Care In his new role, Mr. Marsh will be GTX product line. NASHVILLE, Tenn. — Hankook Tire director of sales Association for providing “outstand- responsible for the company’s mar- Mr. Chalk led America Corp. has promoted tire in- for the past ve ing contributions” to the auto care keting, digital, ecommerce, innova- the initiative to industry veteran Jim Sicking to senior years. Prior to that industry. tion, retail and branding functions, troduce in North director of passenger car and light he was manager Since joining ATD said. America the Tire- truck tire sales, where he will be and sales team RepairPal five Master GTX, ASA’s responsible for all replacement tire leader at Brand- years ago, Ms. Bridgestone promotes new product line sales at the company. ers.com. Trotta has been designed for enter- Mr. Sicking, with nearly 30 years of Mr. Shaffer not- responsible for Blank to OTR sales prise level, multi- Chalk sales experience in the automotive indus- Patel ed that Mr. Patel the team that NASHVILLE, Tenn. — Bridgestone Amer- store chains. try, joined Han- was the “driving evaluated thou- icas Inc. has promoted Marisa Blank He previously worked at Austra- kook last May as force” behind the success of RepairPal sands of inde- to executive di- lia-based Megabus, a sister compa- director of corpo- and Branders.com and said, “Now, he pendent repair rector of sales, ny of ASA. rate sales. He will will set Tire Consumers’ strategy to be- shops in search commercial OTR Merrimack-based ASA Automo- oversee all custom- come the first tire search engine in the au- of the most tech- Trotta tires, tasked with tive Systems provides software to er relationships in tomotive sector. I look forward to Chan’s nically quali ed developing sales independent tire dealers and auto- his expanded role. leadership at the company.” and customer-focused shops in the growth strategies motive service providers, serving Hankook said Mr. Shaffer launched tireconsum- country for the RepairPal Certi ed for the mining retail, wholesale, commercial and the move is de- er.com in 2015, stating at that time Network. and construction retreading enterprises. signed to deep- that the site’s aim is to provide a plat- In addition, she advised many industries and re- en relationships form where consumers can research shops on how to improve their busi- lated segments, KYB promotes Gillund Sicking with customers tires, compare prices and informa- ness practices so they later could including aggre- to marketing manager by optimizing tion, then decide whether to make a achieve RepairPal Certi cation. gates, ports, roads Blank its market approach to be in line purchase and from where. and bridges. GREENWOOD, Ind. — KYB Americas with the company’s sales strategies. Instead of buying the tires on the ATD hires Marsh to Ms. Blank joined Bridgestone in Corp. has promoted Chris Gillund to mar- website, the consumer is directed to 2010 and most recently was director keting manager, responsible for KYB’s Tire Consumer hires local tire dealerships that carry what growth innovation post of OE account management for the national promo- they’re looking for. HUNTERSVILLE, N.C. — American Tire company’s North American consum- tions, social media B2B pro Patel as CEO Distributors Inc. (ATD) has hired er tire business. and digital and PALO ALTO, Calif. — Tire Consum- Ryan Marsh, a sales and marketing Over the last seven years, Bridge- print advertising. er L.L.C., a tire search engine that RepairPal taps Trotta specialist, to be its chief growth in- stone said she helped advance the OE After working seeks to connect online consumers novation of cer, consumer business by developing and in sports market- with tire dealers, has hired B2B sec- as sr. sales director a new position. executing customer-centric plans. ing, Mr. Gillund tor veteran Chan Patel as CEO, tak- SAN FRANCISCO — Auto service and Mr. Marsh for- joined KYB in ing over those duties from founder repair search website RepairPal Inc. merly served in a Chalk to oversee 2015 as market- Tim Shaffer, who will continue as has promoted Jill Trotta to senior variety of sales, ing coordinator. chief operating of cer. director of sales and industry advo- marketing, strat- ASA TireMaster line In that role, Mr. Patel’s hiring comes as Tire cacy. egy, e-commerce MERRIMACK, N.H. — Tire and auto service Gillund he helped devel- Consumer is in the process of updat- Ms. Trotta, who joined RepairPal and brand man- software provider ASA Automotive Sys- op the certi ed ing the tireconsumer.com platform, in 2013, is an ASE Certi ed Techni- agement leader- tems Inc. has appointed 15-year indus- KYB vehicle stability and control a process the company expects to be cian with more than 25 years’ expe- ship roles for sev- try veteran Justin Chalk vice president kit as well as spearheading KYB’s completed by the end of March. rience in the automotive eld. Marsh eral companies, of product management, a role that will 360-degree digital image library. 16 • February 26, 2018, TIRE BUSINESS Visit us on the web at www.tirebusiness.com COMMERCIAL TIRE SERVICE

In ating tires is not rocket science — or is it?

By Peggy J. Fisher found that a large percentage of pressures in recently mounted tires ranged ne undisputed fact in the from 5 to 12 pounds off on average. commercial tire world is Many tires were right on the money, Othat maintaining tire in a- but a large percentage of them were tion pressure is off. Both over- and the single most Why is this? In digging around, I important thing found that there were several reasons. underin ation anyone can do The rst was rather simple. The to improve tire technicians mounting tires did not performance and know what the customers’ requested change the tire’s reduce tire cost pressures were. per mile. At one location, a particular eet footprint, which This is because customer had two pressures it request- it is the air in the ed, one for steer tires and one for all will affect the tire that supports other tires of a particular size. For the vehicle and its Fisher some reason the dealer’s technicians traction of the load and absorbs thought that the drive and trailer tires the shock as well...not the tire. Tires should have pressures higher than the are simply the containers that hold steer tires and arbitrarily came up with tire too. the air. pressures they believed were right for If tires are underin ated, they will these tires. wear fast, the steel cords they are Instead of in ating steers to 110 psi. made of will fatigue and break, exces- and rear tires to 95 psi. as the custom- sive heat will develop, which will de- er requested, the dealer personnel in- stroy the tires, and they will consume ated steers to 90 psi. and drives and more fuel. trailers to 110 psi. there. a zipper condition in a tire being in- station, you can purchase a complete Underin ated tires also will provide At another location, although the Ensure that the air lines are equipped a t e d . assembly from tire supply distributors. drivers with a sloppy road feel and will eet speci ed 110 psi for steers and with water lters and pressure regu- Therefore, you should consider have a tendency to skid in turns cre- 100 for all other tires, all tires were lators. The connection for the air line mounting the regulator and a shut-off Last step ating a dangerous handling situation. in ated to 100. used to in ate tires should never be valve or hose quick release coupler on Overin ated tires have reduced In both situations, steer tires were taken from the bottom of a run where the wall between 10 and 20 feet away After the tires have been in ated, shock absorption qualities and will underin ated signi cantly right out water may accumulate. from the cage. (I know many techni- they always should be checked with provide a hard, rough ride. They are of the box, and the TPMS 2.0 systems Ideally an air dryer is great to re- cians prefer that it be located right next a calibrated service gauge before in- also more vulnerable to cutting, im- issued warnings immediately. move unwanted moisture from the air to the door so they can hit it on their stalling the valve cap and returning pact and shock damage. The second problem, and the most lines but even with an air dryer, drains way out.) the mounted assembly to the custom- Both over- and underin ation common, was the variation in in ation should be checked periodically. If you routinely are in ating tires to er. This is the last step to ensuring tires change the tire’s footprint, which pressures that occurred due to lack of If an air dryer is not available, air two different pressures, consider using have the proper in ation pressure. will affect the traction of the tire too. proper air regulation at the tire cage. lines should be drained regularly. Fa- two tire cages with two regulators set And nally, provide a fool-proof Everyone talks a lot about the im- Some dealers did not have regula- cilities in humid climates may need at different pressures to minimize the method of communicating your eet portance of maintaining proper air tors on their air lines at all. The techni- to drain their lines daily, while others number of times the regulator has to customers’ in ation speci cations to pressure in tires, but in reality there cians simply used their service gauges may only need to drain them weekly. be changed. This will save wear on the your technicians. is much apathy and a general lacka- to check when the tires were in ated Moisture in the air lines will short- regulator and labor in recalibrating it This may be in the form of a book daisical effort in actually attaining it. to the targeted pressure. en air tool and pressure regulator life every time the pressure is changed. or three-ring binder, a laminated paper It seems this is an area where there is Unfortunately, their service gaug- as well as steel, radial tire life. Any Use air lines with a minimum of that ts in the glove compartment of more hot air than action. es were way off. Other dealers that moisture that is in the air lines will 3/8th-inch diameter in and out of the your service trucks, printed on work One of the cool things about TPMS had regulators found it necessary to permeate tire innerliners and attack regulator to allow for optimum air ow. orders, or posted online where it can be 2.0 products that advise eet person- change the regulated air pressure con- the steel cords. OSHA also requires that air lines accessed by tablets and smartphones. nel of tire problems in addition to stantly on their cage to accommodate Also, lubricators must not be be long enough to allow the technician (Some TPMS 2.0 systems provide truck drivers is that now eet manag- different size tires and air pressure plumbed into air lines that are used to to stand clear of the trajectory and that target pressures and instructions to ers have visibility of their tires, even speci cations. in ate tires. clip on air chucks be used to attach the technicians for adjusting in ation though they may be hundreds of miles The regulators did not retain their In addition to safety cages, air regu- air line to the tire. pressure in tire alerts to help ensure away. accuracy, and no one bothered to lators preset to the desired value are an (There are several automatic in a- the proper pressure is applied.) If a tire is serviced, eet managers check them. OSHA requirement. They should be tion kits on the market today that you Whatever works for you and your can see from behind their desks what checked for accuracy weekly if their can get from your tire supply distrib- service team is ne just as long as it is tire pressures were before service was Maintain equipment pressures are never changed. utor, which will provide you with the correct. You don’t want to lose service performed as well as after. And they should be checked for safety and performance you need for business just because your technicians Many eet maintenance managers I also found that service technicians accuracy every time the pressure is your facility.) didn’t know what pressures your eet have been surprised to nd that their who were responsible for in ating changed. Regulator manufacturers Compressors and in ation equip- customers specify. tires are not being in ated to the pres- tires at a eet’s location did not have recommend that pressure always be ment on service trucks should be So in ating tires is not rocket sci- sures they speci ed by both their own properly calibrated service gauges or increased from a lower setting to the maintained to the same standards ence. But how well is your dealership service technicians as well as by their regulators on their service trucks so nal setting for consistent results. found within your service center. performing in this area? tire dealers’ technicians. that their maintenance of the eet’s Regulators can lose their accuracy Technicians at both your service If you are providing mounted tire In the past couple of months, I have tires was far from good. on their own due to wear of their me- facility and in service trucks must be programs to your eet accounts and visited several tire dealers who are Obviously from these experiences, chanical parts and should be replaced provided with good truck tire pressure technicians are mounting/demounting providing mount/demount services it is apparent that having the proper, annually if used in moderation. gauges. tires in your shop, go out right now for their commercial tire customers. well-maintained equipment is crucial If regulators are in constant use, Gauges should be checked weekly with a good air gauge and check 10-12 Without fail, every single dealer was to attaining proper air pressure. then consider replacing them every six at a valve stem adapter built into the recently mounted tires and see what unable to in ate tires consistently to If you are providing mounted tire months. air line at a pressure regulator that is y o u n d . the pressures requested by their cus- programs and in ation pressure main- Placement of the regulators is also checked weekly against a master gauge. Don’t be satis ed unless you nd tomers. tenance for your eet customers, make important. They will not do a very Gauges that are off by 5 percent or that all the tires have been in ated to sure that you have the right, properly good job if they are situated far from more should either be recalibrated or their proper pressures as speci ed by Airing it out maintained equipment to do the job the point of in ation. replaced. your customers. and that you meet Occupational Safe- They should be at most 20 feet Don’t forget to have your master If you nd yourself dissatis ed, You are probably sitting there say- ty and Health Administration (OSHA) away from the in ation hose. Prior to gauge checked annually to ensure that take the necessary steps to blast off ing, “Oh, come on. How tough can requirements. the emergence of the zipper condition it is correct too! A master gauge has a your commercial tire service perfor- in ating tires be?” Start with a good air compressor in radial truck tires, it was a common rated accuracy of +/- 2 percent in the mance. Well, it’s not rocket science, but that is properly maintained and will practice to mount the pressure regula- middle of its range. apparently it’s a lot tougher than most provide the volume of air you need to tor on the tire in ation cage. That means that if a 0-200 psi Peggy Fisher is president of Tire- people think. your service area. It may be necessary This is not such a good idea now, gauge reads 100 psi, the actual pres- Stamp Inc. and is based in Troy, Mich. During my visits to dealers and to install a holding tank in the service since the technician should be able to sure will be between 98 and 102 psi. She can be reached via e-mail at tire- to their eet customers’ locations, I area to increase the volume available cut the air off to the tire if he detects If you don’t have a master gauge check [email protected]. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, February 26, 2018 • 17 COMMERCIAL TIRE SERVICE

ARLINGTON, Va. — Trucking activity in with the group’s index jumping 8.8 ers, I expect freight tonnage to remain the U.S. experienced a 3.7-percent rise percent over January 2017. robust in the months ahead.” Trucking tonnage last year vs. 2016, the industry’s largest The ATA — a federation of 50 af- The ATA’s advanced seasonally ad- annual gain since 2013, according to liated state trucking associations justed (SA) For-Hire Truck Tonnage recent data from the American Truck- and industry-related conferences and Index doesn’t measure tonnage per ing Associations (ATA). councils — calculates the tonnage se, but tracks increases or decreases jumps 3.7% in 2017 The improvement, tracked by the index based on surveys from its mem- in trucking activity on a monthly ba- ATA in its For-Hire Truck Tonnage In- bership. sis. The index increased in January to dex, prompted ATA Chief Economist Referring to the January report, Mr. 111.6, up from 109.4 in December. The Bob Costello to say, “I remain opti- Costello said, “Last month’s gain in baseline year for comparison is 2015. mistic for 2018 for a host of reasons, tonnage t with the anecdotal reports More than 70 percent of freight including a pick-up in factory activity, we have been hearing from eets — shipped in the U.S. is carried by truck, better housing construction, solid re- that freight was solid in what is typi- the ATA claims. Trucks hauled nearly tail sales and an expected shot in the cally a softer month. 10.5 billion tons of freight in 2016. Mo- arm from the new tax law.” “With the economy strong, the tor carriers collected $676.2 billion, or The industry’s activity continued drivers of truck freight solid, and the 79.8 percent of total revenue earned by to improve in January, the ATA said, inventory cycle in favor of motor carri- all transport modes, the ATA said. TBC adds all-position option to Sailun truck tire line TireStamp’s Savings PALM BEACH GARDENS, Fla. — TBC Corp.’s TBC Brands continued growth and excellence.” Dashboard business unit is adding a regional all-position radial truck The S668 expands a Sailun lineup that already includes: tire to the Sailun brand it distributes in the U.S. three long-haul; eight regional; two mixed-service; and two The new tire, S668, is designed for “severe” trailer appli- on-/off-highway offerings. cations, TBC said. As such it features contoured shoulders Sailun tires are produced to withstand lateral scrubbing and a “highly durable” rub- by China’s Sailun Group ber compound to extend service life in high-scrub trailer at plants in China and applications. Vietnam. It launches in four sizes — 11R22.5; 11R24.5; 295/75R22.5; Sailun recently and 255/70R22.5 — and is backed by a six-year warranty for agreed to produce workmanship and materials and a casing retread warranty for radial truck tires at up to two retreads. its plant in Vietnam Sailun’s design approach means the S668 can be used for for Cooper Tire & TireStamp launches multi-axle and spread-axle trailers, TBC said. Rubber Co. under Bill Dashiell, senior vice president, TBC Brands com- Cooper’s Road- mercial tire division, said the new product “provides best- master, Dean and dashboard for eets in-class support services and reinforces our commitment to Star re brands. Sailun S668 ROCHESTER HILLS, Mich. — TireStamp North American Council for Freight Inc. has launched a Savings Dashboard Ef ciency (NACFE) 2013 Report on that the company said shows commer- tire-pressure-monitoring systems. cial truck and bus eets the savings they The dashboard shows the different Timken offers training videos are achieving with the TireVigil Cloud areas where savings are being achieved NORTH CANTON, Ohio — Timken Co., a manufacturer of • “Timken Tricks of the Trade – Adjusting Wheel Bear- tire-monitoring and management solu- and is broken down by labor, break- wheel bearings for the commercial vehicle industry, ings” — shows proper adjustment procedures of wheel tion based on their tire-maintenance downs, fuel consumption, treadwear has created additional “Tricks of the Trade” training bearings on commercial vehicle wheel ends; performance data and costs. and operations. A bar chart illustrates videos for service technicians. • “Timken Tricks of the Trade – Tips for Removing Cups According to TireStamp, the dash- the number of prevented breakdowns The videos, aimed at guiding technicians through steps from Wheel Hubs” — provides tips for removing cups board complements the existing Main- on TireVigil-monitored vehicles and for servicing commercial wheel bearings, include: from commercial vehicle aluminum wheel hubs; and tenance Dashboard that summarizes a how many breakdowns could be pre- • “Timken Tricks of the Trade – Installing a Timken • “Timken Tricks of the Trade – Programming a Hub eet’s tire-maintenance performance vented on vehicles with the system. Premium Wheel Seal” — demonstrates how to prop- Odometer” — provides a step-by-step process for pro- based on real-time metrics generat- A vehicle-alert listing displays vehi- erly install a Timken Premium Seal on a commercial graming hub odometers. ed from data accumulated from each cles with tire alerts in order of service vehicle wheel end; All “Timken Tricks of the Trade” videos are available vehicle equipped with the TireVigil priority, based on the time remaining • “Timken Tricks of the Trade – Installing a Timken Set- on Timken’s YouTube channel Tricks of the Trade playlist. Cloud system. before a tire reaches a critical level that Right Bearing” — reviews the proper installation of a Additional training resources are available at Tim- The Savings Dashboard provides a jeopardizes its health. Set-Right bearing on a commercial vehicle wheel end; ken.com/techtips. snapshot of a eet’s key tire cost met- A map shows where these vehicles rics, the annual and current month sav- are and their current alert status. ings generated by vehicles equipped TireStamp President Peggy Fish- with TireVigil Cloud and the projected er said the dashboard “is a tool that savings attainable by using TireVigil operations, maintenance and upper Yokohama unveils SmartWay-veri ed throughout the entire eet. management can use to prevent dis- Results are calculated daily using Ti- ruptions in operations, improve tire reVigil Cloud’s algorithms and analyt- maintenance and positively impact the long-haul drive tire — TY577 MC² ics based on each eet’s actual tire data, bottom line.” TireStamp said. A video showing the Savings Dash- SANTA ANA, Calif. — Yokohama Tire an ultra-deep tread pattern with Yo- ing ex; and It uses industry-accepted calcu- board in action can be seen on Tire- Corp. (YTC) has launched a fu- kohama’s MC² technology, which • funnel-shaped grooves to re- lations made available through the Stamp’s website, tirestamp.com. el-ef cient long-haul drive tire, the minimizes the effects of heat on the duce stone retention and increase TY577 MC² for the U.S. market. casing and tread, providing extreme block rigidity for improved traction The SmartWay-veri ed TY577 low rolling resistance to reduce and wear rate. Conti releases retread for Conti Hybrid HT3 MC² comes in sizes 295/75R22.5, e e t s ’ c o s t - p e r - m i l e . 11R22.5, 285/75R24.5 and 11R24.5, The TY577 MC² also features: FORT MILL, S.C. — Continental Tire maintaining mileage performance, and also is offered in 16-ply con- • a 30/32nd-inch deep tread groove the Americas has unveiled a match- the company said. struction. depth for rm and stable road grip; ing retread for its Conti Hybrid HT3 The tread also features groove ge- “The TY577 MC² delivers it all — • closed-shoulder rib for more tire for spread-axle trailer applica- ometry with stone-ejection technolo- exceptional traction, long even wear, rubber-to-road contact for long, even tions in long-haul and regional de- gy to reduce stone retention. superior durability, low rolling re- wear; livery. The Conti Hybrid HT3 tire, which sistance and incredible fuel ef cien- • stress-wear tread grooves to re- The ContiTread Hybrid HT3 re- Continental launched last April, is cy,” said Tom Clauer, Yokohama’s distribute more load to the outside tread features an improved wing available in sizes 11R22.5 (Load manager of commercial and OTR rib, reducing the chance of shoulder design for added protection in high- Range G and H), 11R24.5 (Load product planning. “It’s de nitely a step-down wear; scrub applications as well as an ad- Range G and H), 285/75R24.5 (Load long-lasting money-saver.” • Yokohama’s STEM-2 technolo- vanced tread compound designed for Range G and H) and 295/75R22.5 Mr. Clauer said the tire combines gy, which redirects destructive cas- Yokohama TY577 MC² high-scrub trailer applications, while (Load Range G and H). 18 • February 26, 2018, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Major tire makers cautiously optimistic about 2018 Continued from page 1 the negatives of 2017 in the U.S. is to billion. cessful in all aspects,” providing a sta- on sales of $3.61 billion, dropping the with rising commodity prices as a key expand efforts to gain OE business In his comments on the rm’s per- ble platform for growth that will start operating ratio 1.7 points to 11.2 per- factor. outside of Asia, enter new channels formance, Michelin CEO Jean-Domi- with the construction of the company’s cent, as higher raw materials-related In the tire segment — which rep- and accelerate the cadence of product nique Senard pointed out the company rst U.S. factory, in Dayton, Tenn. costs overshadowed gains in sales/mix resents 83 percent of the group’s rev- introductions. is pursuing the “acquisitions that will Nokian’s revenue growth was led and currency exchange rates. enue — operating income fell 6.7 support its ambitions for growth and by its sales in Russia/Eastern Europe Toyo returned to the black on a net percent to $3.46 billion on 9.6-percent Goodyear’s results — segment op- value creation.” and North America, which jumped basis, after suffering a net loss in scal higher sales of $27.1 billion, dropping erating income down 12.5 percent on He did not elaborate, but separate- 46.4 and 15.2 percent, respectively. 2016 due to extraordinary charges re- the operating ratio more than two 1.4-percent higher sales — were rely Michelin has disclosed in recent Sales growth in Europe and the Nordic lated to the company’s seismic rubber points to 12.8 percent. ported in the Feb. 12 issue. weeks two signi cant deals in the tire countries, by contrast, was less robust bearing business scandal. Regionally, unit sales of passen- distribution/logistics area in the U.S. at 8 and 4.6 percent, respectively. The company’s tire business unit ger, light truck and medium truck/ Hankook Tire Co. Ltd.’s operating with Sumitomo Corp. of America/TBC For 2018, Nokian anticipates growth fared slightly better, posting 1.4-per- bus truck tires rose steadily in Japan, income fell 28.1 percent to $701.8 mil- Corp. and in Europe with Mobivia P.L.C. in all of its segments, especially in Rus- cent higher operating income of $411.1 Bridgestone said. In North America, lion on 2.9-percent higher revenue of Michelin said it expects “modest sia/Eastern Europe. The rm’s heavy million on a 7.6-percent sales improve- passenger and light truck tire sales $6.02 billion, dropping the operating growth” for passenger/light truck and tires business is rebounding after a ment to $2.92 billion. fell, but unit sales of truck/bus tires in- ratio ve points to 11.6 percent. truck tire markets during 2018, while few down years, exempli ed by invest- Toyo did not provide detailed com- creased strongly. Hankook attributed the revenue the mining tire and agricultural and ments being made at the headquarters mentary on its performance this past Sales of radial large and ultra-large growth to increased sales of larger earthmover OE markets should remain plant in Nokia, Finland, to boost output year, but it did disclose gures that OTR tires for construction and mining rim-diameter passenger and SUV tires “buoyant.” of truck and OTR tires. show sales and operating income im- vehicles increased “substantially” on a and said all regions contributed to the In terms of segment performance, proved in North America. Revenue global basis. improvement. The company did not sales in the passenger car/light truck Sumitomo Rubber Industries rose 8.8 percent to $1.66 billion, while disclose net earnings at this time. tires unit rose 3.1 percent to $14.1 bil- Ltd. (SRI) reported an 8-percent drop earnings jumped 12 percent to $77.3 Continental has reported only pre- Sales of tires in the 17-inch and larg- lion, while operating income fell 2.1 in operating income to $602.2 million million, raising the operating ratio liminary results thus far — 8 percent er rim-diameter category accounted for percent to $1.75 billion for an operating on 16-percent higher revenue of $7.84 marginally to 4.6 percent. growth in sales to nearly $50 billion 48.4 percent of sales, Hankook said, an ratio of 12.4 percent. billion, dropping the earnings ratio two For the current scal year, Toyo is and an adjusted pre-tax operating in- increase of 3.9 percentage points over Michelin attributed the decline to full points to 7.7 percent. Net income projecting a gain of nearly 4 percent come ratio of 10.8 percent. 2016. The gains were recorded in both “unfavorable” currency effects but said climbed 13.6 percent to $419.5 million. in operating income on a 1.2-percent the OE and replacement markets, espe- it sustained market-share gains in 18- SRI noted that the prices of both nat- drop in corporate revenue. Net income Cooper Tire’s 2017 operating in- cially in Europe and China. inch and larger tires, with 19-percent ural rubber and butadiene — a key in- should rebound measurably with the come fell 29.3-percent to $271.7 mil- In North America, Hankook said growth. gredient in synthetic rubber — surged absence of extraordinary charges. lion on 2.4-percent lower sales of $2.85 its replacement sales improved due to The truck tires segment suffered a throughout the rst half of the year be- Overall, Toyo’s tire production in- billion, dropping the operating margin strengthened distribution channels and 14.3-percent drop in operating income fore plateauing and falling back in the creased 5.3 percent to 239,300 metric nearly four points to 9.5 percent. an expanded supply of OE tires to the to $56.3 million on 2.6-percent higher second half. tons, the company reported, including Net income plunged 61.6 percent to transplant assembly operations of Japa- revenue of $6.9 billion. The margin fell SRI’s tire business’ performance a 17.4-percent jump in North America $95.4 million, as the company record- nese car companies. The company has a point and a half to 8.1 percent. mirrored the parent’s, with operating to 66,800 tons. The 2018 forecast is for ed $68 million of “discrete” tax items been active of late securing new OE Revenue in Michelin’s specialty tire earnings falling 14.1 percent to $520.9 a 4.6-percent gain. in the fourth quarter related to the im- tments in North America, including businesses unit — including earth- million and revenue rising 16.7 percent pact of U.S. tax reforms. positions on the 2108 Toyota Camry, mover, farm, two-wheel and aircraft to $6.76 billion. As a result, the oper- Yokohama Rubber Co. Ltd. (YRC) Despite the earnings drops, Coop- Honda Accord and Lincoln Navigator. tires — grew 18.4 percent to $3.79 ating ratio fell more than two points to reported a 22.7-percent rise in oper- er President and CEO Brad Hughes The Seoul, South Korea-based tire billion on the strength of 16-percent 7.7 percent. ating income to $463.4 million on called Cooper’s ability to have end- maker is targeting revenue growth in volume growth, led by the “sustained The company experienced expo- 12.1-percent better sales of $5.96 bil- ed 2017 with an operating margin of 2018 of nearly 9 percent to roughly rebound” in demand for mining tires nentially high sales growth in North lion, increasing the operating ratio 9.5 percent “noteworthy” especially $6.5 billion with operating pro ts re- and a sharp upturn in earthmover and America and Europe, reecting the three-fourths of a point to 7.8 percent. “given the pricing and volume chal- covering to their 2016 level of about agricultural OE sales. enhanced business generated by the Net income jumped 87.5 percent to lenges within the industry throughout $900 million. rm’s new business units established $314.3 million. the year, and the signi cant impact of Nexen Tire Corp.’s operating in- after the dissolution of its global alli- Yokohama’s tire segment reported higher raw material costs.” Michelin reported operating income fell 25.2 percent to $164.3 mil- ance with Goodyear in late 2015. 10.3-percent improved operating in- For 2018 Cooper expects unit vol- come of $3.09 billion on 5-percent lion on 3.7-percent higher sales of $1.74 Revenue in North America grew come of $357.7 million on 6.9-percent ume growth over 2017 and an operat- higher sales of $24.8 billion, reducing billion, dropping the operating ratio 15.7 percent over 2016 to $1.37 bil- higher sales of $4.3 billion, as the coming ratio in the 9- to 11-percent range. the operating ratio nearly a half-point nearly four points to 9.4 percent. lion, while SRI’s European activities pany recorded increased OE and re- The company didn’t disclose a speci c to 12.5 percent, amid currency and Net income dropped 27.2 percent to nearly double sales there to almost placement business both domestically revenue forecast. raw materials headwinds as well as the $113.5 million. $950 million. and in selected international markets. Cooper’s Americas segment report- launch of a major reorganization. Nexen did not provide commentary Globally, tire unit sales grew 9.7 per- Yokohama said “winning factory t- ed 7.1-percent lower revenue in both Michelin attributed the sales growth on its results, but the data released cent, SRI said, to 123.5 million. Pro- ments on premium-grade” cars is a the quarter and scal year — to $645 to a number of factors, including a show a decrease in sales in the fourth duction capacity, expressed in metric strategic priority. million and $2.42 billion, respectively 2.6-percent increase in unit volumes, quarter, including a double-digit de- tons, increased 2.8 percent last year Sales in the ATG OTR tire segment — as unit shipments were off 6.2 per- which generated $612 million in rev- cline in North America, which Nexen and should grow by the same amount — agricultural, industrial, construction, cent overall, including an 8.3-percent enue, and more than $750 million in attributed to weak consumer purchas- again in 2018. Capacity in the U.S. and forestry tires — of $566.4 million drop in car/light truck tire sales in the additional revenue from a “favorable ing power and the strong Korean won increased 12.5 percent last year and is were “consistent with management’s U.S. price-mix effect,” which nearly bal- to U.S. dollar exchange rate. projected to grow 9.3 percent this year. expectations.” Sales were more than Cooper cited “industrywide condi- anced out the negative effects of higher SRI is projecting growth in sales double those in 2016, but the prior year tions and our continued exit from some raw materials prices. Nokian Tyres reported a 17.7-per- and operating pro ts of 4 and 8 per- covered just six months of revenue from non-strategic private brand business” Non-recurring activities, mainly cent gain in operating pro t to $412 cent, respectively, on a corporatewide the Alliance Tire Group acquisition. for its shipments decline. Operating in- costs related to the group’s reorgani- million on 13-percent higher sales of basis, and 4 and 11 percent in the tire Yokohama is forecasting 10.7- and come for the year decreased 26 percent zation, had a $125 million negative $1.77 billion, resulting in a slightly business segment. 3.7-percent gains in operating income to $325 million. impact on income, reducing operating higher operating ratio of 23.2 percent. and sales for the current scal year, Among the initiatives Mr. Hughes income to $2.97 billion. Net income Nokian President and CEO Hille Toyo Tire’s scal 2017 operating in- along with a 1-percent gain in net in- said Cooper is undertaking to reverse came in at a “historically high” $1.91 Korhonen said Nokian’s 2017 was “suc- come fell 8.1 percent to $404.5 million come. Infrastructure package would place major burden on states Continued from page 3 government and 80-percent state and local. We “The more it is debated, the more obstacles it enforce than the existing motor fuels tax,” NAT- are so drastically changing the model here.” will face,” he said. SO President and CEO Lisa Mullings said. Besides presenting dif culties on its face, the The American Trucking Associations issued “Why would anyone fail to support an increase new formula could lead to a patchwork of differ- a statement Feb. 14, two days after the other or- in the fuel tax and, at the same time, work to cre- ent state tax systems and rates for infrastructure ganizations, saying it had heard reports that the ate another type of tax such as toll roads that costs funding, he said. White House was open to considering a fuel tax more to collect than the fuel tax?” The initial $200 billion in federal funds also increase. According to Mr. Little eld, the administra- pose a problem, according to Mr. Little eld. “We support the president’s big and bold vision tion’s infrastructure proposal poses a lot of unan- “How will you pay for that?” he said. “One for strengthening American infrastructure,” said swered questions, both in its sheer breadth and its suggestion is a gas tax, which wasn’t on the table ATA President and CEO Chris Spear. core principles. the last time around.” “Because it is a user fee, the fuel tax is the most “Today we have a system that is 80 percent Mr. Little eld said he believes the infrastruc- conservative, cost-effective and viable solution to paid for by the federal government and 20 percent ture proposal has at best an uncertain chance of making that vision a reality,” Mr. Spear said. by state and local governments,” Mr. Little eld passage, unless it is pushed through Congress “Ninety-nine cents of every dollar goes direct- said. “The administration’s proposal would re- without hearings as the tax reform package was ly to road and bridge maintenance, and it doesn’t Bridge repair is a target of President Trump’s verse that, with 20-percent funding by the federal last December. add a penny to the de cit,” he said. infrastructure package. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, February 26, 2018 • 19

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Quality used tires Highlight Your Customizable Mixes Domestic & International Shipping Equipment Supplies 14”-24” Passenger Car, SUV, UHP & LT sizes & Business Tools HERE Lakin Tire West Lakin Tire East (800) 488-2752 (800) 368-8473 Call 3 3 0 - 8 6 5 - 6117 www.lakintire.com for details and program offers. 20 • February 26, 2018, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Tire Pros emphasizes unity, consistency Continued from page 1 The tool measures six key metrics — sales; and the implications of that,” ATD CEO and Pres- gross pro t; passenger/light truck units; alignment ident Stuart Schuette told a sea of red-shirted Tire Mission-Based Council members units; tire protection plan units; and car count — Pro dealers at the general session. The following is the list of tire dealers who are members of Tire Pros Mission-Based Councils: broken into four comparisons — national average, “How do we thrive, grow, succeed, push regional average, current performance and goals. through that and create our own destiny and our CUSTOMER EXPERIENCE: Steve Stock, Plains Tire Co. Tire Pros, Casper, Wyo.; Pat Fleis- Dealers can gauge their success against others chmann, Community Tire Pros & Auto Repair, Phoenix; Guido Bertoli, Big Discount Tire Pros, own future? That’s what this is all about. That’s in the region and across the nation, with similar or Alameda, Calif.; Kevin Edens, Sherwood Tire Pros, Sherwood, Ark.; Andrea Ellet, Winding Brook what the work we’re doing at Tire Pros.” Auto Service Tire Pros, Milford, Va.; Tally Noah, Big 10 Tire Pros, Jackson, Miss.; Lynn Massengill, varying sizes. Reports available include 12-month The work began at last year’s conference, held in Premier Tire Pros, Cleveland, Tenn.; Mike Smith, Mike Smith Tire Pros, Lumberton, Texas. performance, current and prior year-to-dates; and New Orleans during Mardi Gras. It was there that monthly and annual projections. Messrs. Sinclair and Schuette and others preached MARKETING: Cami Mourao, Auto Spot Tire Pros, Jacksonville, Fla.; David Frame, City Tire The tool can be accessed with a tablet, smart- a message of togetherness, unity and consistency. Pros, Zanesville, Ohio; Kent Olson, Olson Tire Pros & Auto Service, Wassau, Wis.; Mendi Perry, phone or desktop, from anywhere, anytime. Two “Ultimately, at the end of the day, we’re stronger Carroll's Tire Pros, Palestine, Texas; Gary Eavers Jr., Eavers Tire Pros, Stuarts Draft, Va.; Howard views are available: One shows current numbers if we work together to be the best franchises in the Fleischmann, Community Tire Pros, Phoenix; Tom Eisenburg, West Coast Tire Pros, Los Angeles; while the second is more detailed, showing cur- industry,” said Perry Leonard, president, chief oper- Lynda Kester, Big Red Tire Pros, Lincoln, Neb. rent, historical and projected numbers, ating of cer and owner of Car Concept Inc., a chain The dashboard is all about keeping score, Mr. of nine Tire Pros locations in the Dallas-Fort Worth TECHNOLOGY: Joe Rice, Big G Tire Pros, Bridgeville, Pa.; Josh Baughman, Van's Tire Pros, Geno said. “The saying what gets measured, gets area. Mr. Leonard is chairman of the National Wadsworth, Ohio; Kyle Battle, Battlefield Tire Pros, Swansboro, N.C; Manny Geno, Geno's Tire managed, that’s so true,” he said. “We kept fo- Dealer Council, which oversees the MBCs. Pros, Booneville, Miss.; Mark Tricou, Plantation Tire Pros, Baton Rouge, La.; R.J .Vidal, Top's Tire cused on that very thing. We also kept focused on Last year’s theme of “Being One with the Pros” Pros, El Paso, Texas; Ryan Goff, Roger's Tire Pros, Caldwell, Idaho; Ryan Sullivan, Sullivan's Tire the voice of the dealer, voice of the owner. What continued this year, emphasizing “the whole con- Pros & Auto Service, Seaside, Calif. did they want?” cept of unity,” according to Mr. Sinclair. “Ultimately A number of dealers are using the tool, with ATD is successful if our core dealers are successful.” TRAINING: James Baxter, Neighborhood Tire Pros, Decatur, Ga.; Brad Goff, Roger's Tire Pros, more to follow. Tire Pros will roll out the tool over Each of the four MBCs — comprising eight deal- Caldwell, Idaho; Butch Hammett, Family Tire Pros Auto Service Center, Colorado, California and the course of 2018. ers representing various regions of the country — are Indiana; Anthony Porfido, Freeway Automotive Tire Pros, Dover, N.J.; Paul Fuller, Folsom Tire Pros, helping to drive that success. Each presented a course Folsom, Calif.; John Craft, Chelsea Tire Pros, Chelsea, Ala.; Jim Melvin Jr., Melvin's Tire Pros, See- konk, Mass.; Greg Lowell, Lowell's Service Center Tire Pros, Collinsville, Ill. More tools of action pertaining to its core focus: marketing, training, technology and customer experience. NATIONAL DEALER COUNCIL: Perry Leonard, Blagg Tire/Car Concepts, Grapevine, Texas; In addition to the tools outlined by the MBCs, Josh Gregg, Cross Dillon Tire, Nebraska, Iowa; Susan Anderson, A Automotive Tire Pros, Colville, Tire Pros of cials also updated dealers about two Marketing Wash.; Jason Greer, K&G Tire Pros, Buckner, Ky.; Cami Mauro, Auto Spot Tire Pros, Jacksonville, Fla; other initiatives: the Net Provider Score (NPS) Nick Lenhart, Lenhart Tire Pros, Irwin, Pa.; Steven Moss, Wilson Tire Pros & Automotive, Elon, N.C. and a change in the dealer rebate program. According to Quick Chadwick, director of mar- NPS — a consumer-driven tool that objectively keting services for Tire Pros, the marketing mes- areas that we believe are critical for our retailers, The program features three levels: Rising Star measures customer satisfaction — was rolled out sage from individual Tire Pros dealers was “all speci cally our tire service retailers,” Mr. Sinclair designates a dealer meeting basic expectations; Shin- last year. It is in the pilot stage, according to Camer- over the place.” said. “It’s been an idea for quite some time. I credit ing Star is a dealer who goes beyond the basic expec- on Chernikow, senior manager, national programs. In an effort to streamline the message and “build the (MBC) for making it a reality.” tations and is on the path toward the top; and ProStar Consumers are asked to ll out a survey after re- the value of the Tire Pros brand,” Mr. Chadwick Mr. Sinclair said the playbook includes a great is reserved only for the top dealers, or “what real en- ceiving service. There is one question: “On a scale said, the mission-based marketing council reallocat- balance of “gotta-dos” — those elements he said gagement looks like,” according to Mr. Baxter. of 0-10, how likely are you to recommend Tire Pros ed some national advertising funds and developed a every Tire Pros dealer should and must do — There are seven areas that will be rated: Tire to a friend, family member or colleague?” brand platform that will launch this quarter that de- and “oughtta-dos” — those elements he said are Pros branding and identity; support of marketing NPS, which is used in other industries, allows livers the same, consistent message throughout. recommendations, depending on various factors initiatives; vendor support; training compliance; business owners “to gauge customer loyalty, and “We want a hassle-free experience,” Mr. Chad- unique to each Tire Pros location. franchise engagement; participation and promo- through that gives you opportunities to improve wick said. “Like anything, you’re going to have varying tion of Tire Pros credit card and warranty pro- customer retention, thereby increasing traf c, So what can a consumer expect from a has- levels of engagement, but I believe the ‘gotta-dos’ grams; and data submission for benchmarking. A which ultimately is going to improve your busi- sle-free experience? are achievable by all of our franchises,” Mr. Sin- dealer needs to meet ve of them in order receive ness performance,” Ms. Chernikow said. “It gives “It’s how you deliver a service in a way to make clair said. “I think they’ll be well-accepted.” 325 points and the ProStar designation. you a common thread.” it as convenient as possible for the consumer — Pat Fleischmann of Community Tire Pros of Mr. Baxter said that under the previous system, The NPS score is derived from subtracting what I need, when I need it,” Mr. Sinclair said. Phoenix said the playbook was a much-needed 80 percent of dealers were rated highly. This new the percentage of detractors (0 through 8) from “Most people...really want an element of trust project that “was built from the bottom up, not the program reverses that: he expects just 20 percent the percentage of promoters (9s and 10s). Nearly — when someone says you need a set of tires or top down,” and includes parts of other established of the dealers to be rated as ProStars. 1,000 surveys charted from 13 owners represent- new set of brake pads or need this work done, they manuals that exist within the market. Those dealers that are rated as ProStars in 2018 ing 31 locations have garnered a score of 58 thus trust that person and that retailer. The playbook, she said, was constructed with will be recognized on stage during next year’s far. She said any score above 50 is “excellent.” “One of the bene ts our Tire Pros dealers have the knowledge that not all stores or store owners Dealer Conference. However, she said Tire Pros needs three times is that they’ve been in the market. This is their are created alike. “I believe it really is a pathway to success so that many responses in order to secure an accurate business, this is their livelihood. And being that “We all have different cultures, we all have dif- that it will help you grow your units and your ser- score. “We want to make sure this is the best tool local independent gives many of them one-up on ferent opinions,” Ms. Fleischmann said. “Whether vice, your pro tability, your customer count and when we roll it out across all the stores,” she said. the trust component. Now if you can wrap in pro- you’re from Virginia or Phoenix, there are differ- hopefully help with you investing with some of Meanwhile, Mr. Sinclair told dealers Tire cesses and technologies that enable them to devel- ences. But you need to have that total experience training opportunities to retain your employees,” Pros would be enhancing its rebate program. op and deliver that in a hassle-free manner, that’s a at each one (that consumers) touch, whether they Mr. Baxter said. Previously, dealers received rebates simply ac- great combination.” are traveling or at their home local area.” “If the playbook is the gameplan, then the Pro- cording to sales growth. The suite of marketing assets includes elements The playbook is just a start, according to Bob Stars become the scoreboard, and together it’s a Now, the program includes a loyalty component: for television, print, radio, direct mail, digital ban- Bittner, vice president of Tire Pros operations. winning combination that helps to becoming one Dealers who show signi cant loyalty to purchasing ners, online video and in-store displays. “It’s a project that’s never going to be complete- brand, one mission, one with the Tire Pros,” Mr. ATD products — which Mr. Sinclair de nes as 90- All Tire Pros dealers who attended the confer- ly nished, as our brand evolves, as our network Bittner said. plus percent — will receive a higher rebate. ence were asked to lm a customized tag that can evolves,” he said. “As we grow the number of lo- “We recognize on any certain day, there may become part of a Tire Pros commercial, called cations in the franchise, there is every reason to be- Technology be a consumer across the country who wants a the “Return to Simplicity,” that was previewed lieve the playbook will evolve and expand as well.” speci c tire that we might not have,” Mr. Sinclair during the event. “It’s not good enough to be great,” Ms. Fleis- The last piece of the MBC puzzle represents a said. “We believe we’re best in business in product “It’s about consistency, at a national, regional and chmann said. “You have to be epic. We have to be technological piece designed speci cally for the assortment and in our supply chain.” individual store basis,” said Lynda Kester of Big top of line, be the No. 1 store in our area.” dealer cooperative — an online dashboard bench- Overall growth continues to be goal for Tire Red Tire Pros of Lincoln, Neb. “When we are all marking tool that will enable Tire Pros dealers to Pros, but Mr. Sinclair said there is no magic num- singing the same song of music, and we’re all doing Training measure their performance against others on an ber. Over time, he said, 1,000 locations is achiev- it together, we have a strong message we can bring.” ongoing basis. The dashboard includes regional able, but it may not happen within a year or two “In 2018, we will continue to work together as The mission-based training council developed and national benchmarks, as well as annual goals “It’s more about quality than quantity,” he said. one voice, one brand, one team,” Mr. Chadwick a new tool that compliments the new playbook: established by dealers in conjunction with Tire “Do we think we’re going to be able to grow that said. “We are one.” A new, merit-based ongoing evaluation process Pros representatives. number in the months and years to come? Abso- called ProStars that is designed to push Tire Pro “The dashboard benchmark will pull everyone in lutely. But they have to be the right dealers...that Customer experience dealers toward operational excellence. and everyone together, to make sure the power with- are going to value the programs and technology The program combines online reporting tools in this room is powerful, not powerless,” said Randy that we’re bringing to bear. We believe this pro- Mr. Sinclair said Tire Pros had discussed de- and location visits by Tire Pros staff to rate each O’Connor, a regional business consultant for ATD. gram has a lot of pathway for growth.” veloping a manual for its members as far back as Tire Pros dealer. Manny Geno of Geno Tire Pros of Booneville, Dealers, he said, will drive that growth and July 2016. The mission-based customer experience “This is dealer created, from council members Miss., and a member of the mission-based tech- success. council made the notion a reality, compiling a “play- and input from other Tire Pros members,” said nology council, said his council took “a concept “It’s really about the success of the mis- book” that offers direction and policies on how to James Baxter of Neighborhood Tire Pros of Deca- through the total creative process and ended up sion-based councils to drive initiatives and drive operate a Tire Pros facility “in a manner that will tur, Ga. “We’ve created a pathway for dealers that with functional system in such a short amount real tools and services that we were able to (unveil) maximize customer acquisition/retention; assure can easily take advantage of what’s offered and of time. It speaks to the dedication and work the at this conference and will continue to roll out as operational ef ciencies and optimize pro tability. can really be a success and grow their business and dealer council really implements. It wouldn’t be the year goes on,” Mr. Sinclair said. “It’s a very “It’s our playbook to be successful in these key compete with some of the national competition.” possible without that.” exciting time.” Visit us on the web at www.tirebusiness.com TIRE BUSINESS, February 26, 2018 • 21 From Gomez among Tire Pros award winners

Community Partner of the Tirp Pros photos Year award winner Tom Ryan (left) and Brad Goff of Davis of Discount Tire Rogers Tire Pros in Idaho, Outlet Tire Pros poses won the Young Tire Pros with his wife Melissa. Louis and Angel Gomez of Prescott Tire Pros & Automotive Service, winners of the Excellent in Engage- ment award, are congratulated by Bob Bittner (far left) and Quick Chadwick (far right) of Tire Pros. Dealer of the Year Award.

By Don Detore The winners include: community; and der to qualify for the drawing for the truck Tire Tire Business staff • Louis Gomez of Prescott Tire Pros & Au- • Brad and Ryan Goff of Rogers Tire Pros, Pro dealers needed to attend the conference’s tomotive Service, Prescott, Ariz., who won the with two stores in Idaho, who won the Young general session and three breakout sessions on SAN ANTONIO — Three tire dealers from across Excellent in Engagement award, which honors Tire Pros Dealer of the Year award, which hon- Feb. 9, as well as the vendor fair on Feb. 10. the country were honored during the annual the franchise’s most engaged progressive advo- ors the franchise’s most dynamic, young inde- Mr. Gordon and his wife Lynette received Tire Pros dealer award ceremony. cate. pendent tire dealer who is community focused the truck on the night of Feb. 10, prior to a ro- The breakfast event took place Feb. 10 • Tom Davis of Discount Tire Outlet Tire and embodies the Tire Pros brand. deo held at a San Antonio ranch. The rodeo, during the Tire Pros National Dealer Confer- Pros, with two stores in Ohio, who won the In addition, Ron Gordon of Ron Gordon’s performed by professional bull riders, was part ence, held at the JW Marriott Spa and Resort Community Partner of the Year award, which Tire Pros of Payson, Utah, won a branded, of the nal night of festivities for Tire Pros deal- in San Antonio. honors a dealer most involved with his or her souped-up 2018 GMC Sierra SLD truck. In or- ers, employees, vendors and their families. A sea of Tire Pros red Tire Business photos Don by Detore Lynette and Ron Gordon of Ron Gor- Sharon and Randall Myers of Randall’s don’s Tire Pros of Payson, Utah, won Tire Pros dealers take notes during the general session. Tire Pros of Greensboro, N.C., take a sel e a 2018 GMC Sierra SLD truck. with Hootie, the Tire Pros mascot.

Carol and Ray Pringle (left) of All-Pro Tire Pros of Bluffton, S.C., shared a table with Jose and Sandra Gomez of Little’s Tire Pros of Sandpoint, Idaho. Nick Collier (left) and Mark Collier (right) of Tire Lori and John Zuniga of Tire Connection Tire Pros of El City Tire Pros of Albion, Mich., enjoy the festivi- Paso, Texas, stand with Jay Thatcher (right) of Thatcher’s ties with Bill Isenhart of Tire Pros. Tire Pros & Auto Center of Superior, Wis. 22 • February 26, 2018, TIRE BUSINESS Visit us on the web at www.tirebusiness.com Tire imports from Thailand and Vietnam surging Continued from page 1 fourth spots ahead of China. China continued last year as the No. for a second plant at that site for radial year was $152.98, up 7.8 percent from several leading Chinese tire makers of Overall imports of passenger tires 1 source of imported truck/bus tires, truck and OTR tires. 2015. Prices ranged from $109.59 truck tire production to plants in Thai- edged up just 0.6 percent last year over despite shipments falling 15 percent, The average declared value of an (China) to $263.95 (Canada) among land, Indonesia or Vietnam. 2016 to 147.5 million units. to 6.49 million units. It was the second imported medium truck/bus tire last the largest trading partner countries. A year after landing at the top of the The average declared customs value straight double-digit decline in truck/ list of U.S. trading partners, Canada of an imported passenger tire last year bus tire imports from China. slid to third on the 2017 list, eclipsed edged up 0.8 percent to $49.52, with Overall truck/bus tire imports were by Thailand as well as China. Imports prices for tires from the major trading up 5.1 percent to 14.6 million units, from Thailand last year were valued at partners ranging from $27.90 (China) with double-digit increases by seven $1.86 billion, 35.8 percent higher than to $65.20 (Canada). of the top 10 countries — Thailand, in 2016. Thailand’s status as the leading Japan, South Korea, Germany, Spain, The value of Canada’s imports slid source of tires for the U.S. is expected Vietnam and Indonesia — more than 2.5 percent to $1.54 billion. to keep growing, based on the number offsetting the drop in shipments from South Korea and Japan rounded out of tire plants that have opened there China. the top ve at $1.34 billion and $1.09 recently or are under construction or Thailand, Canada, Japan and South billion, respectively. Both countries’ being expanded. Korea are second through fth on the imports were down in value from Germany’s Continental A.G. and list, with Thailand’s exports to the 2016, by 6.3 and 7.6 percent, respec- China’s Shandong Yinbao Tyre Group U.S. eclipsing the 2 million mark for tively. Co. Ltd., for example, have new plants the rst time. Mexico, Indonesia and Taiwan under construction, and Shandong Thailand’s truck tires exports to the were the next largest sources of im- Linglong Tire Co. Ltd., Otani Tire Co. U.S. are set to grow even more in the ported tires, valued at $839.6 million, Ltd. and Vee Rubber Co. Ltd. have ca- coming years as more capacity comes $749.8 million and $491.4 million, pacity expansions under way. on stream there. respectively. All were up measurably The average declared value of a Among the new plants there is vs. 2016. car tire from Thailand last year was Shanghai Huayi (Group)’s joint ven- Of its major trading partners, the $36.44, down 3 percent from 2016 and ture in Rayong Province, a plant with U.S. held a surplus with just one coun- more than 26 percent below the aver- a designated annual capacity of 1.5 try, Mexico, which took in $1.2 billion age of $49.52 for all imports. million truck and bus tires and 50,000 worth of tires from the U.S. last year The big climber of the year was industrial tires. Shanghai Huayi is the and exported $839.6 million to the Vietnam, which has attracted tire parent of Double Coin Holdings. U.S., resulting in a trade surplus of plant investment in recent years from Also contributing to Thailand’s $360.2 million. Chinese, Japanese and Taiwanese tire gain is international tire distributor Canada was the No. 1 export des- makers. Exports from that Southeast Zafco Trading L.L.C., which is sourc- tination for U.S.-made tires at $1.49 Asian country to the U.S. grew 50.7 ing its Amstrong-brand truck tire billion, but Canada’s $1.54 billion in percent to 6.46 million units. range from Otani Radial Tire Co. Ltd. shipments to the U.S., resulted in near Canada remained the No. 1 source in Thailand, in which Zafco holds an equilibrium. The next largest export of light truck tire imports last year de- undisclosed ownership stake. destination was Australia, which took spite a 16.7-percent drop in cross-bor- Worth noting: Vietnam’s truck/bus in $257.7 million worth of products der shipments. Thailand solidi ed its tire exports to the U.S. shot up from from the U.S. No. 2 position on the light truck list, just a few thousand in 2016 to nearly On the import side, Thailand so- shipping a third more LT tires — 5 300,000 last year, and shipments from lidi ed its status as the No. 1 source million — to the U.S. than in 2016. Indonesia went from a few hundred of imported passenger tires, shipping South Korea’s LT tire exports to the units to 183,280 units last year. 30.1 million units to the U.S. last year, U.S. dropped 18.2 percent to 2.76 mil- Cooper Tire & Rubber Co. re- an increase of 26.6 percent. lion units, just ahead of Vietnam’s 2.61 cently disclosed it had struck an South Korea ranked second for million. off-take production deal with Sailun the second straight year despite a Overall, light truck tire imports Vietnam Co. Ltd. for the production 12.9-percent drop in shipments, to slipped 4.3 percent last year to 26.7 of radial truck and bus tires, giv- nearly 16 million units. million units as eight of the top 10 ing it a third source for truck tires China, the perennial No. 1 until trading partners in this category re- it sells under the Roadmaster, Dean two years ago, slid to fth last year as duced their exports to the U.S. and Star re brands. its passenger tire exports to the U.S. While unit shipments were down, Sailun Vietnam, a subsidiary of plunged nearly 35 percent to 10.6 mil- the average declared value rose 0.5 China’s Sailun Group, has been pro- lion units. Indonesia and Mexico, with percent to $69.23, with prices among ducing tires at its plant in Tay Ninh 15.1 million and 11.8 million units, the larger exporters ranging from Province, Vietnam, since early 2014 respectively, claimed the third and $53.15 (Vietnam) to $94.90 (Japan). and has committed $200 million more Conti-GIZ partnership targets sustainable production of NR Continued from page 1 a program initiated by Germany’s Federal grow high-quality rubber in accordance the tire maker said, and precedes the re- optimization that will generate higher in- Ministry for Economic Cooperation and with clearly de ned sustainability criteria, lease later this year of a speci c corporate comes for rubber tree cultivators, Conti Development (BMZ), Conti said. To ensure Conti said. An electronic system will be de- NR sustainability policy, Conti said, that’s said. Indonesia is considered the No. 2 pro- that supply-chain partners are on board, veloped to ensure full traceability of the raw being developed by a sustainability manage- ducer of NR worldwide. Conti has signed memoranda of understand- material along the entire supply chain. ment team in the rm’s corporate purchas- To safeguard and monitor sustainable ing with two unnamed suppliers. This initiative reects Conti’s increasing ing department. rubber production, Continental and the GIZ In total, 400 farmers will be trained to emphasis on sustainability in purchasing, This policy is designed to further rein- will implement a traceability system and force the unquestionable commitment of the increase the traceable production of rubber corporation to securing a healthy and com- in Indonesia’s West Kalimantan region over pliant supply chain and the zero tolerance the next three years, Continental said, not- attitude toward deforestation, land grabbing ing that the initiative also will seek to en- and other practices that harm local popula- sure that rubber cultivation doesn’t lead to tions and the entire eco-system, Conti said. rainforest deforestation. The company added that more than 80 “Our objective is to establish a traceable percent of its Rubber Group raw materials and sustainable supply chain and set a best suppliers have been evaluated and further practice example for the production of nat- development activities have been started. ural rubber,” said Nikolai Setzer, who is in At the same time, Conti said it is one of charge of corporate purchasing and the tire 11 leading tire makers on the World Busi- division on Conti’s executive board. ness Council for Sustainable Development “The partnership with GIZ gives us access (WBCSD) that is working to establish an to local players whom we need to achieve industry standard for NR sustainability. traceability and sustainability.” The other members of the WBCSD’s Tire In- The GIZ describes itself as a “provider of dustry Project are: Bridgestone Corp.; Cooper international cooperation services for sus- Tire & Rubber Co.; Goodyear; Hankook Tire tainable development and international edu- Co. Ltd.; Kumho Tire Co. Inc.; Group Mi- cation work,” dedicated to building a future chelin; Pirelli & C. S.p.A.; Sumitomo Rubber worth living around the world. Industries Ltd.; Toyo Tire & Rubber Co. Ltd.; The partnership is part of develoPPP.de, Conti’s initiative with the GIZ is part of a larger plan toward sustainable NR sourcing. and Yokohama Rubber Co. Ltd.