Tire Business Special Report TGI broadening It’s been a quiet year Brands at a TireBrandsReport 10 Cosmo portfolio 10 for branding 12-13 glance listing Directory of private brand marketers 14-16 Import brand marketers 17-20 Flag-associate brand marketers 21-22 May 13, 2019 $79 per year, $4 per copy www.tirebusiness.com Keeping the message consistent Conti unveils four products at Gold Trip, but message to dealers remains same By Don Detore we have been doing it a long time,” said Chris [email protected] Charity, vice president of sales, noting that CABO SAN LUCAS, Mexico he, Mr. Rof er and Bill Caldwell, vice presi- Sure, there was the requisite new prod- dent of sales and marketing, have all been in ucts — four to be exact — as well as re- their respective positions for a decade-plus. views of the latest dealer program and “It’s very different from other compa- marketing initiatives, but leaders of Con- nies, but it works for us,” Mr. Charity said. tinental Tire the Americas L.L.C. had one “We found ways to grow, and we face big overwhelming message during the recent challenges every year, but we keep it fresh dealer meeting: Consistency. and nd solutions moving forward.” Coming off one of the most disruptive In fact, it was Mr. Caldwell’s initial greet- years in the tire industry, during which ing to dealers — when he told them that Con- four of its competitors made a push to con- ti will continue to focus on producing a quali- trol the distribution market, Conti wanted ty product and partner with distributors “who to make one thing clear to the record 375 support our brands and support dealers who dealers — including 62 rst-timers — who want to sell our brands the right way” — that quali ed for the 15th annual Gold Trip. drew the loudest applause. “We want to be consistent in what we’re “So there’s not really an initiative or a trig- doing, and the message stays consistent year ger or a catalyst for us to change that course after year,” Director of Marketing Travis right now,” Mr. Caldwell said during the Rof er said. “Everything I’m doing in mar- general session on the second day of the ve- Director of Marketing Travis Rof er was one of keting, everything they’re doing in sales, our day getaway, held in mid-March at the Hy- several Continental Tire the Americas executives direction and philosophy, is our consistency att Ziva Los Cabos resort in Cabo. Around to address dealers during the 2019 Gold Trip, held in how we handle the independent dealer.” 100 premier dealers spent two extra days in Cabo San Lucas, Mexico. Tire Business photo by Don Detore “Our team is a very consistent team, and SEE CONTI, PAGE 24 Duties, tariffs disrupting tire industry Impact on Chinese truck tires in flux Trump tariffs set to increase By Bruce Davis The truck/bus tire duties are By Miles Moore and rubber auto and industrial parts including [email protected] the result of a petition led in [email protected] V-belts, conveyor belts, tubes, pipes and hoses. hose curious about the effects of elevat- April 2017 by the United Steel- WASHINGTON In the notice, the USTR also said it would ed import duties on a market need look workers (USW) union, which The U.S. is prepared establish a process by which individuals and Tno further than the U.S. replacement represents workers at union- to go ahead with plans to companies affected by the tariffs may request tire market over the past four years. ized tire factories in the U.S. raise tariffs on $200 bil- that particular products be excluded from the Since the U.S. government imposed duties in The U.S. Internation- lion worth of goods from additional duties. 2015 — ranging up to 100 percent in some cases al Trade Commission (ITC) China — including tires The Auto Care Association (ACA), National — on passenger and light truck tires from China, voted in February 2017 not and other automotive Retail Federation (NRF) and American Chemis- imports of passenger tires to the U.S. from that to impose duties, which components — to 25 per- try Council were among business groups urging nation have dropped more than 80 percent, to 8.5 prompted a USW appeal with the Court of Inter- cent, according to the Of ce of the U.S. Trade President Trump to reconsider raising tariffs. million units last year from 50.4 million in 2014. national Trade, which remanded the decision to Representative (USTR). On the other hand, the Alliance for American As a result, the share of the U.S. passenger tire the ITC, which decided two months ago in favor The agency’s notice — which appeared in the Manufacturing (AAM) cheered Mr. Trump’s aftermarket taken by tires from China collapsed, of duties after re-evaluating the case. May 9 Federal Register — was published even stance against unfair Chinese trade practices. falling to 3.9 percent last year from 24.4 percent At this point, it is still too early to gauge the as a Chinese delegation was en route to Wash- Retread Instead, a coalition of retread industry in 2014. (See detailed graphs on page 24.) full impact of the ITC’s ruling on the market and ington to continue trade talks with the U.S. players that promotes the economic and envi- The industry collectively is now looking at the importers of truck/bus tires from China, although The notice singles out all Chinese goods that ronmental advantages of retreading, said new potential impact of antidumping and counter- there have been a few moves lately that indicate received import duties of 10 percent in September tariffs would be helpful to retreaders, though vailing duties imposed in February on truck and the commercial tire segment may mimic changes 2018. The new tariffs were to take effect May 10. not as much as the antidumping and counter- bus tires from China. The duties, which range that took place in the passenger tire market. The 194-page list, which covers 5,745 sep- vailing duties levied against Chinese truck and from 20.98 percent to 63.34 percent countervail- Other recent actions by the Trump administra- arate items, includes virtually every type of bus tires earlier this year. ing and 9 percent to 22.57 percent antidumping, tion on tariffs on Chinese goods are compounding pneumatic tire; many rubber chemicals, syn- In two tweets May 5, Mr. Trump said he took effect in mid-February. SEE IMPACT, PAGE 26 thetic rubbers and grades of natural rubber; SEE RAISING , PAGE 26 ©Entire contents copyright 2019 by Crain Communications Inc. All rights reserved. Nexen’s R&D center in Seoul. Nexen inaugurates Hankook 3 R&D center in Seoul changes 23 company Tire makers report name 4 mixed Q1 results A STRONG AND DURABLE ALL-PURPOSE-TERRAIN TIRE PROVIDING COMPETENT ALL-TERRAIN OFF-ROAD CAPABILITY, BALANCED WITH EXCELLENT ON-ROAD PERFORMANCE, designed for all weather conditions. Robust design and materials provide long, even wear and excellent cut and chip durability. A flatter footprint, optimized tread pattern stiffness and robust tread compound provide excellent tread life. Tread cushioning system with counter-angled shoulder grooves provide a more comfortable, quiet ride. Meetsthe severe snowservice requirements ofthe Rubber Manufacturers Associations (RMA) andthe Rubber Association of Canada (RAC). Excludes OE fitments. Visit us on the web at www.tirebusiness.com TIRE BUSINESS, May 13, 2019 • 3 IndustryNews Leadership change Armstrong replaces retiring Sweatman at Marangoni MADISON, Tenn. Bill Sweatman has ended his 16-year tenure as president and CEO of Maran- goni Tread North America (MTNA), ofcially retiring on May 1. Industry veteran Clif Armstrong, who has more than 35 years of expe- rience in various roles, has succeeded Mr. Sweatman as Marangoni president Nexen’s R&D center in Seoul features a courtyard and a multi-helix green roof, as well as a solar power system. Sweatman Armstrong and CEO. Mr. Armstrong has been vice president, business development out his career, including sales, market- for MTNA since September 2017. ing, operations and company-owned Nexen inaugurates $178M Mr. Sweatman joined Marangoni commercial store networks at Pirelli 18 years ago. A few years earlier — Tire L.L.C./TP Commercial Tire and 1998 — Jack Woodland founded the Continental Tire the Americas. global R&D center in Seoul company in Walnut Creek, Calif. Mr. Armstrong said he began to ap- In 2002, the rm moved to Mad- preciate the Ringtread product several SEOUL, South Korea green roof and features tire tread patterns on the exte- ison and began producing the Ring- years ago while with another company. Nexen Tire Corp. has inaugurated a 613,000-sq.-ft. rior to dene the industry’s attributes. It incorporates a tread, Marangoni’s agship product, “I came away from that experience central research center in Seoul that will become the solar power system, an underground cooling and heat- a double-contoured circular tread that in awe of the Ringtread concept and its company’s research and development hub for its R&D ing ventilation system and a green rooftop to prevent needs no splicing, like other precured performance achievements,” Mr. Arm- centers in the U.S., Europe and China. thermal heat damage. retreads used in commercial truck and strong said. Nexen invested $178 million over two years in the cen- The eco features helped Nexen obtain a Level 1 tire retreading. “It truly is different and better. I am ter, dubbed “Nexen UniverCity,” which is located within the building energy-efciency rating certicate from the Mr.